AAN Aarons Holdings Company Inc

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For a discussion of trends that we believe have affected our business during the periods covered by these financial statements, see Part I, Item 2. "Management’s Discussion and Analysis of Financial Condition and Results of Operations", including the "Highlights," "Consolidated Results of Operations" and "Liquidity and Capital Resources", below, and Part I, Item 1A "Risk Factors" of our Annual Report on Form 10-K, filed with the United States Securities and Exchange Commission on March 1, 2023 (the "2022 Annual Report").

Description of Business

The Aaron's Company, Inc. (the "Company") is a leading, technology-enabled, omni-channel provider of lease-to-own ("LTO") and retail purchase solutions of furniture, electronics, appliances, and other home goods across its brands: Aaron's, BrandsMart U.S.A., BrandsMart Leasing, and Woodhaven Furniture Industries ("Woodhaven").

Unless the context otherwise requires or we specifically indicate otherwise, references to "we," "us," "our," and the "Company," refer to The Aaron's Company, Inc., which holds, directly or indirectly, the Pre-Spin Aaron’s Business (as described in the 2022 Annual Report) and all other subsidiaries of the Company, which are wholly owned, as well as other lines of business described above.

As of June 30, 2023, the Company's operating and reportable segments are the Aaron's Business and BrandsMart, each as described below. Effective as of April 1, 2022 and in connection with the acquisition of BrandsMart U.S.A., the Company changed its composition of reportable segments to align the reportable segments with the current organizational structure and the operating results that the chief operating decision maker regularly reviews to analyze performance and allocate resources, which includes separate segments for the Aaron's Business and BrandsMart, along with an Unallocated Corporate category for remaining unallocated costs.

The Aaron's Business segment is comprised of (i) Aaron's branded Company-operated and franchise-operated stores; (ii) aarons.com e-commerce platform ("aarons.com"); (iii) Woodhaven; and (iv) BrandsMart Leasing (collectively, the "Aaron’s Business").

The operations of BrandsMart U.S.A. (excluding BrandsMart Leasing) comprise the BrandsMart segment (collectively, "BrandsMart").

BrandsMart U.S.A. Acquisition

On April 1, 2022, the Company completed the previously announced transaction to acquire a 100% ownership of Interbond Corporation of America, doing business as BrandsMart U.S.A. The Company paid total consideration of approximately $230 million in cash under the terms of the agreement and additional amounts for working capital adjustments and transaction related fees. Refer to Note 2 to these condensed consolidated financial statements for additional information regarding the BrandsMart U.S.A. acquisition.

Management believes that the BrandsMart U.S.A. acquisition will strengthen the Company's ability to deliver on its mission of enhancing people’s lives by providing easy access to high quality furniture, appliances, electronics, and other home goods through affordable lease-to-own and retail purchase options. Management also believes that value creation opportunities include leveraging the Company's lease-to-own expertise to provide BrandsMart U.S.A.'s customers enhanced payment options and offering a wider selection of products to millions of Aaron's customers, as well as generating procurement savings and other cost synergies.

Aaron's Business Segment

Since its founding in 1955, Aaron's has been committed to serving the overlooked and underserved customer with a dedication to inclusion and improving the communities in which it operates. Through a portfolio of approximately 1,260 stores and its aarons.com e-commerce platform, Aaron's, together with its franchisees, provide consumers with LTO and retail purchase solutions for the products they need and want, with a focus on providing its customers with unparalleled customer service, high approval rates, lease plan flexibility, and an attractive value proposition, including competitive monthly payments and total cost of ownership, as compared to other LTO providers.

Woodhaven manufactures and supplies a significant portion of the upholstered furniture leased and sold in Company-operated and franchised Aaron's stores.

Launched in 2022, BrandsMart Leasing offers LTO purchase solutions to customers of BrandsMart U.S.A.

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BrandsMart Segment

Founded in 1977, BrandsMart U.S.A. is one of the leading appliance and consumer electronics retailers in the southeast United States and one of the largest appliance retailers in the country with ten stores in Florida and Georgia and a growing e-commerce presence on brandsmartusa.com. The operations of BrandsMart U.S.A. (other than BrandsMart Leasing) comprise the BrandsMart segment.

The following table presents store count by ownership type:

Stores as of June 30 (Unaudited)			2023						2022
Company-operated Aaron's Stores1			1,026						1,060
GenNext (included in Company-Operated)			230						171
Franchisee-operated Aaron's Stores			230						234
BrandsMart U.S.A. Stores2			10						10
Systemwide Stores			1,266						1,304

Company-operated Aaron's Store Types as of June 30, 2023 (Unaudited)			GenNext			Legacy			Total
Store			175			649			824
Hub			48			53			101
Showroom			7			94			101
Total			230			796			1,026

1 The typical layout for a Company-operated Aaron's store is a combination of showroom, customer service and warehouse space, averaging approximately 9,500 square feet. Certain Company-operated Aaron's stores consist solely of a showroom.

2 BrandsMart U.S.A. stores average approximately 100,000 square feet and have been included in this table subsequent to the acquisition date of April 1, 2022.

Basis of Presentation

The financial statements as of and for the three and six months ended June 30, 2023 and comparable prior year periods are condensed consolidated financial statements of the Company and its subsidiaries, each of which is wholly-owned, and is based on the financial position and results of operations of the Company. Intercompany balances and transactions between consolidated entities have been eliminated. These condensed consolidated financial statements reflect the historical results of operations, financial position and cash flows of the Company in accordance with accounting principles generally accepted in the United States ("U.S. GAAP").

The preparation of the Company's condensed consolidated financial statements in conformity with 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. The extent to which inflationary and other economic pressures will impact the Company's business will depend on future developments. These developments are uncertain and cannot be precisely predicted at this time. In many cases, management's estimates and assumptions are dependent on estimates of such future developments and may change in the future.

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 2022 Annual Report. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of operating results that may be achieved for any other interim period or for the full year.

Accounting Policies and Estimates

See Note 1 to the consolidated and combined financial statements in the 2022 Annual Report for an expanded discussion of accounting policies and estimates.

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Earnings (Losses) 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"), performance share units ("PSUs") and other awards issuable under the Company's 2020 Equity and Incentive Plan or employee stock purchase plan ("ESPP"), (collectively, "share-based awards"), as determined under the treasury stock method, unless the inclusion of such awards would have been anti-dilutive.

The following table shows the calculation of weighted-average shares outstanding assuming dilution:

			Three Months Ended June 30,												Six Months Ended June 30,
(Shares In Thousands)			2023						2022						2023						2022
Weighted Average Shares Outstanding			30,993						30,827						30,894						30,944
Dilutive Effect of Share-Based Awards1			314						—						380						546
Weighted Average Shares Outstanding Assuming Dilution			31,307						30,827						31,274						31,490

1 There was no dilutive effect of share-based awards for the three months ended June 30, 2022 due to the net loss incurred in the period.

Approximately 1.2 million weighted-average share based awards were excluded from the computation of earnings per share assuming dilution during the three and six months ended June 30, 2023, and 0.7 million during the six months ended June 30, 2022, respectively, as the awards would have been anti-dilutive for the periods presented.

Revenue Recognition

The Company provides lease and retail merchandise, consisting of appliances, electronics, furniture, and other home goods to its customers for lease under certain terms agreed to by the customer and through retail sales. The Company's Aaron's stores, aarons.com e-commerce platform, and BrandsMart Leasing components of the Aaron's Business segment offer leases with flexible ownership plans that can be generally renewed weekly, bi-weekly, semi-monthly, or monthly up to 12, 18 or 24 months. The Aaron's Business segment also earns revenue from the sale of merchandise to customers and Aaron's franchisees, and earns ongoing revenue from Aaron's franchisees in the form of royalties and through advertising efforts that benefit the franchisees.

The Company's BrandsMart U.S.A. stores and related brandsmartusa.com e-commerce platform offer the sale of merchandise directly to its customers via retail sales.

See Note 5 to these condensed consolidated financial statements for further information regarding the Company's revenue recognition policies and disclosures.

Advertising

The Company expenses advertising costs as incurred. Advertising production costs are initially recognized as a prepaid advertising asset and are expensed when an advertisement appears for the first time. Total advertising costs were $6.6 million and $19.6 million during the three and six months ended June 30, 2023, respectively, (three and six months ended June 30, 2022: $12.6 million and $23.3 million, respectively) and are classified within other operating expenses, net in the condensed consolidated statements of earnings. These advertising costs are presented net of cooperative advertising considerations received from vendors, which represents reimbursement of specific, identifiable and incremental costs incurred in selling those vendors’ products. The amount of cooperative advertising consideration recorded as a reduction of such advertising costs was $8.6 million and $16.1 million during the three and six months ended June 30, 2023, respectively, (three and six months ended June 30, 2022: $9.4 million and $16.4 million, respectively). The prepaid advertising asset was $4.2 million and $4.6 million at June 30, 2023 and December 31, 2022, respectively, and is reported within prepaid expenses and other assets on the condensed consolidated balance sheets.

Accounts Receivable

Accounts receivable consist of receivables due from customers on lease agreements, corporate receivables incurred during the normal course of business (primarily for vendor consideration and third-party warranty providers), and franchisee obligations.

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Accounts receivable, net of allowances, consist of the following: 

(In Thousands)			June 30, 2023						December 31, 2022
Customers			$	7,385					$	9,721
Corporate			17,051						20,597
Franchisee			5,762						7,873
			$	30,198					$	38,191

The Company maintains an accounts receivable allowance for the Aaron's Business customer lease agreements, under which its policy is to record a provision for returns and uncollectible contractually due renewal payments based on historical payments experience, which is recognized as a reduction of lease revenues and fees within the condensed consolidated statements of earnings. Other qualitative factors are considered in estimating the allowance, such as current and forecasted business trends. The Company writes off customer lease receivables, excluding customer lease receivables for its BrandsMart Leasing operations, that are 60 days or more past due on pre-determined dates twice monthly. The Company writes off customer lease receivables for its BrandsMart Leasing operations that are 90 days or more past due on pre-determined dates twice monthly.

The Company also maintains an allowance for outstanding franchisee accounts receivable. The Company's policy is to estimate future losses related to certain franchisees that are deemed to have a higher risk of non-payment and record an allowance for these estimated losses. The estimated allowance on franchisee accounts receivable includes consideration of the financial position of each franchisee and qualitative consideration of potential losses associated with uncertainties impacting the franchisee's ability to satisfy their obligations. Uncertainties include inflationary and other economic pressures in the current macroeconomic environment. Accordingly, actual accounts receivable write-offs could differ from the allowance. The provision for uncollectible franchisee accounts receivable is recorded as bad debt expense in other operating expenses, net within the condensed consolidated statements of earnings.

The allowance related to corporate receivables is not significant as of June 30, 2023 and December 31, 2022.

The following table shows the components of the accounts receivable allowance:

			Six Months Ended June 30,
(In Thousands)			2023						2022
Beginning Balance			$	8,895					$	7,163
Accounts Written Off, net of Recoveries			(22,108)						(16,761)
Accounts Receivable Provision			21,111						17,484
Ending Balance			$	7,898					$	7,886

The following table shows the components of the accounts receivable provision, which includes amounts recognized for bad debt expense and the provision for returns and uncollected payments:

			Six Months Ended June 30,
(In Thousands)			2023						2022
Bad Debt Expense (Reversal)			$	25					$	(203)
Provision for Returns and Uncollectible Renewal Payments			21,086						17,687
Accounts Receivable Provision			$	21,111					$	17,484

Lease Merchandise

The Company’s lease merchandise is recorded at the lower of depreciated cost, including overhead costs from our distribution centers, 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 begins depreciating lease merchandise at the earlier of 12 months and one day from its purchase of the merchandise or when the merchandise is leased to customers. Lease merchandise fully depreciates 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.

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The following is a summary of lease merchandise, net of accumulated depreciation and allowances:

(In Thousands)			June 30, 2023						December 31, 2022
Merchandise on Lease, net of Accumulated Depreciation and Allowances			$	408,314					$	446,923
Merchandise Not on Lease, net of Accumulated Depreciation and Allowances1			228,282						246,872
Lease Merchandise, net of Accumulated Depreciation and Allowances			$	636,596					$	693,795

1 Includes Woodhaven raw materials, finished goods and work-in-process inventory that has been classified within lease merchandise in the condensed consolidated balance sheets of $11.0 million and $12.9 million as of June 30, 2023 and December 31, 2022, respectively.

The Aaron's store-based operations' policies require weekly merchandise counts at its store-based operations, which include write-offs for unsalable, damaged, or missing merchandise inventories. Monthly cycle counting procedures are performed at both the Aaron's distribution centers and Woodhaven manufacturing facilities. Physical inventories are also taken at the manufacturing facilities annually. The Company also monitors merchandise levels and mix by division, store, and distribution center, as well as the average age of merchandise on hand. If obsolete merchandise cannot be returned to vendors, its carrying amount is adjusted to its net realizable value or written off. Generally, all merchandise not on lease is available for lease or sale. On a monthly basis, all damaged, lost or unsalable merchandise identified is written off and is included as a component of the provision for lease merchandise write-offs in the accompanying condensed consolidated statements of earnings.

The Company records a provision for write-offs using the allowance method, which is included within lease merchandise, net within the condensed consolidated balance sheets. The allowance method for lease merchandise write-offs estimates the merchandise losses incurred but not yet identified by management as of the end of the accounting period based primarily on historical write-off experience. Other qualitative factors are considered in estimating the allowance, such as seasonality and the impacts of uncertainty surrounding inflationary and other economic pressures in the current macroeconomic environment and the normalization of business trends associated with the effects of the COVID-19 pandemic on our customers. Therefore, actual lease merchandise write-offs could differ from the allowance. The provision for write-offs is included in provision for lease merchandise write-offs in the accompanying condensed consolidated statements of earnings. The Company writes off lease merchandise on lease agreements, excluding lease agreements for its BrandsMart Leasing operations, that are 60 days or more past due on pre-determined dates twice monthly. The Company writes off lease merchandise on lease agreements for its BrandsMart Leasing operations that are 90 days or more past due on pre-determined dates twice monthly.

The following table shows the components of the allowance for lease merchandise write-offs:

			Six Months Ended June 30,
(In Thousands)			2023						2022
Beginning Balance			$	13,894					$	12,339
Merchandise Written off, net of Recoveries			(39,181)						(43,140)
Provision for Write-offs			39,161						44,070
Ending Balance			$	13,874					$	13,269

Merchandise Inventories

The Company’s merchandise inventories are stated at the lower of weighted average cost or net realizable value and consist entirely of merchandise held for sale by the BrandsMart segment. In-bound freight-related costs from vendors, net of allowances and vendor rebates, are included as part of the net cost of merchandise inventories. Costs associated with storing and transporting merchandise inventories to our retail stores are expensed as incurred and included within retail cost of sales in the condensed consolidated statements of earnings.

The Company periodically evaluates aged and distressed inventory and establishes an inventory markdown which represents the excess of the carrying value over the amount the Company expects to realize from the ultimate sale of the inventory. Markdowns establish a new cost basis for the inventory and are recorded within retail cost of sales within the condensed consolidated statement of earnings. The write-offs of merchandise inventories associated with the Company's cycle and physical inventory count processes are also included within retail cost of sales in the condensed consolidated statement of earnings. The Company records an inventory reserve for the anticipated loss associated with selling inventories below cost. This reserve is based on management’s current knowledge with respect to inventory levels, sales trends, and historical experience selling or disposing of aged or obsolete inventory.

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The following is a summary of merchandise inventories, net of allowances:

(In Thousands)			June 30, 2023						December 31, 2022
Merchandise Inventories, gross			$	93,773					$	96,945
Reserve for Merchandise Inventories			(921)						(981)
Merchandise Inventories, net			$	92,852					$	95,964

The following table shows the components of the reserve for merchandise inventories:

			Six Months Ended
(In Thousands)			June 30, 2023
Beginning Balance			$	981
Merchandise Written off			—
Provision for Write-offs			(60)
Ending Balance1			$	921

1 There were no significant markdown provisions recorded during the three and six months ended June 30, 2022.

Prepaid Expenses and Other Assets

Prepaid expenses and other assets consist of the following:

(In Thousands)			June 30, 2023						December 31, 2022
Prepaid Expenses			$	19,159					$	20,218
Insurance Related Assets			31,505						25,103
Company-Owned Life Insurance			14,633						13,443
Assets Held for Sale			1,113						1,857
Deferred Tax Assets			23,686						16,277
Other Assets1			20,741						19,538
			$	110,837					$	96,436

1 Amounts as of June 30, 2023 and December 31, 2022 included restricted cash of $1.6 million held as collateral for BrandsMart U.S.A.'s workers' compensation and general liability insurance policies.

Sale-Leaseback Transactions

During the six months ended June 30, 2022, the Company entered into two sale and leaseback transactions related to five Company-owned Aaron's store properties for a total sales price of $9.0 million, $5.7 million of which was received during the six months ended June 30, 2022. Such proceeds are presented within proceeds from dispositions of property, plant and equipment in the condensed consolidated statements of cash flows. The Company recognized gains of $1.9 million and $5.7 million associated with these transactions during the three and six months ended June 30, 2022, respectively, which was classified within other operating expenses, net in the condensed consolidated statements of earnings. As of June 30, 2022 proceeds of $3.3 million related to such transactions remained outstanding and were received during the third quarter of 2022.

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Derivative Instruments

In March 2023, the Company entered into a non-speculative interest rate swap agreement for an aggregate notional amount of $100.0 million with an effective date of April 28, 2023 and a termination date of March 31, 2027. The purpose of this hedge is to limit the Company's exposure of its variable interest rate debt by effectively converting it to fixed interest rate debt. Under the terms of the agreement, the Company will receive a floating interest rate based on 1-month Chicago Mercantile Exchange ("CME") Term Secured Overnight Financing Rate ("SOFR") and pay a fixed interest rate of 3.87% on the notional amount. The Company has accounted for the interest rate swap as a cash flow hedge instrument in accordance with ASC 815, Derivatives and Hedging ("ASC 815"). Accordingly, the effective portion of the gains and losses associated with the changes in the fair value of the cash flow hedge instrument are recognized as a component of accumulated other comprehensive loss in the Company's condensed consolidated balance sheets. Such amounts are reclassified into earnings in the same period during which the cash flow hedging instrument affects earnings. As of June 30, 2023, the facts and circumstances of the hedged relationship remain consistent with the initial effectiveness assessment and the hedging instrument remains an effective accounting hedge.

The fair value of the hedge as of June 30, 2023 was an asset of $1.0 million, and has been recorded within prepaid expenses and other assets in the Company's condensed consolidated balance sheets. During the three and six months ended June 30, 2023, the Company reclassified $0.2 million of net losses from accumulated other comprehensive loss to interest expense. See Note 3 to these condensed consolidated financial statements for further information regarding the fair value determination of the Company's interest rate swap agreement. Derivative instruments in place during the prior year were not significant.

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consist of the following:

(In Thousands)			June 30, 2023						December 31, 2022
Accounts Payable			$	108,314					$	106,966
Estimated Claims Liability Costs			60,790						58,549
Accrued Salaries and Benefits			34,779						33,932
Accrued Real Estate and Sales Taxes			23,390						24,030
Other Accrued Expenses and Liabilities			33,578						40,566
			$	260,851					$	264,043

Estimated Claims Liability Costs

Estimated claims liability costs are accrued primarily for workers compensation and vehicle liability, as well as general liability and group health insurance benefits provided to team members. These liabilities are recorded within estimated claims liability costs within accounts payable and accrued expenses in the condensed consolidated balance sheets. Estimates for these claims liabilities are made based on actual reported but unpaid claims and actuarial analysis of the projected claims run off for both reported and incurred but not reported claims. This analysis is based upon an assessment of the likely outcome or historical experience and considers a variety of factors, including the actuarial loss forecasts, company-specific development factors, general industry loss development factors and third-party claim administrator loss estimates of individual claims. The Company makes periodic prepayments to its insurance carriers to cover the projected claims run off for both reported and incurred but not reported claims, considering its retention or stop loss limits. In addition, we have prefunding balances on deposit and other insurance receivables with the insurance carriers which are recorded within prepaid expenses and other assets in our condensed consolidated balance sheets.

Goodwill

Goodwill represents the excess of the purchase price paid over the fair value of the identifiable net tangible and intangible assets acquired in connection with business acquisitions. All acquisition-related goodwill balances are allocated amongst the Company's reporting units based on the nature of the acquired operations that originally created the goodwill. During the fourth quarter of 2022, in connection with its annual impairment testing, management evaluated the various components of the operating segments further described above and in Note 8 to these condensed consolidated financial statements and identified three reporting units, Aaron's Business, BrandsMart, and BrandsMart Leasing, each as described below.

The Aaron's Business reporting unit is comprised of (i) Aaron's branded Company-operated and franchise operated stores; (ii) aarons.com e-commerce platform ("aarons.com"); and (iii) Woodhaven (collectively, the "Aaron’s Business reporting unit"). The Aaron's Business reporting unit is a component of the Aaron's Business operating segment.

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The operations of BrandsMart Leasing comprise the BrandsMart Leasing reporting unit (collectively, the "BrandsMart Leasing reporting unit"), and is a component of the Aaron's Business operating segment.

Management considered the aggregation of the BrandsMart Leasing reporting unit and Aaron's Business reporting unit as a single reporting unit and determined that these components were economically dissimilar and also reviewed separately by the segment managers of the Aaron's Business operating segment, and therefore should not be aggregated.

The operations of BrandsMart, comprise the BrandsMart reporting unit (collectively, the "BrandsMart reporting unit") and is also the sole component of the BrandsMart operating segment.

The acquisition of BrandsMart U.S.A. in the second quarter of 2022 resulted in the recognition of approximately $55.8 million of goodwill, inclusive of measurement period adjustments further described in Note 2 to these condensed consolidated financial statements. Of this amount, $29.2 million was assigned to the BrandsMart reporting unit and $26.5 million was assigned to the BrandsMart Leasing reporting unit. The following table provides information related to the carrying amount of goodwill by operating segment.

(In Thousands)			Aaron's Business			BrandsMart			BrandsMart Leasing			Total
Balance at December 31, 2022			$	—		$	28,193		$	26,517		$	54,710
Acquisitions			—			—			—			—
Acquisition Accounting Adjustments			—			1,040			—			1,040
Impairment Loss			—			—			—			—
Balance at June 30, 2023			$	—		$	29,233		$	26,517		$	55,750

The Company’s goodwill is not amortized but is subject to an impairment test at the reporting unit level annually as of October 1 and more frequently if events or circumstances indicate that an interim impairment may have occurred. An interim goodwill impairment test is required if the Company believes it is more likely than not that the carrying amount of its reporting unit exceeds the reporting unit's fair value. The Company determined that there were no events that occurred or circumstances that changed during the six months ended June 30, 2023 that would more likely than not reduce the fair value of its reporting units below their carrying amount.

The Company may be required to recognize material impairments to the BrandsMart or BrandsMart Leasing goodwill balances in the future if: (i) the Company fails to successfully execute on one or more elements of the BrandsMart strategic plan; (ii) actual results are unfavorable to the Company's estimates and assumptions used to calculate fair value; (iii) the BrandsMart or BrandsMart Leasing carrying values increase without an associated increase in the fair value; and/or (iv) BrandsMart or BrandsMart Leasing is materially impacted by further deterioration of macroeconomic conditions, including inflation and other economic pressures, including rising interest rates.

Acquisition-Related Costs

Acquisition-related costs of $0.5 million and $2.4 million were incurred during the three and six months ended June 30, 2023, and Acquisition-related costs of $8.0 million and $11.5 million were incurred during the three and six months ended 2022. These primarily represent internal control readiness third-party consulting, banking and legal expenses and retention bonuses associated with the acquisition of BrandsMart U.S.A. completed April 1, 2022.

Related Party Transactions with the Sellers of BrandsMart U.S.A.

Effective as of the BrandsMart U.S.A. acquisition date, the Company entered into lease agreements for six store locations retained by the sellers of BrandsMart U.S.A., including Michael Perlman, who was employed by the Company for a short period following the acquisition. While Mr. Perlman is no longer employed by the Company as of December 31, 2022, the Company intends to continue its treatment of the lease agreements as potential related party transactions under the Company’s Related Party Transactions Policy until December 2023. The agreements include initial terms of ten years, with options to renew each location for up to 20 years thereafter. The Company recorded these leases within operating lease right-of-use assets and operating lease liabilities in the Company's condensed consolidated balance sheets. The six operating leases have aggregate annual rental payments of approximately $10.0 million and are considered to be above market. The value of the off-market element of the lease agreements was included as a component of the consideration transferred to the sellers of BrandsMart U.S.A. and was recognized as a reduction to the operating lease right-of-use-asset. The total amounts paid to the sellers of BrandsMart U.S.A. during the three and six months ended June 30, 2023 related to real estate activities, including rental payments, maintenance and taxes, were approximately $3.2 million and $6.5 million, respectively.

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Stockholders' Equity

Changes in stockholders' equity for the three and six months ended June 30, 2023 and 2022 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						Shares						Amount
Balance, December 31, 2022			(5,480)						$	(138,753)					36,100						$	18,050					$	738,428					$	79,073					$	(1,396)					$	695,402
Cash Dividends, $0.125 per share			—						—						—						—						—						(3,966)						—						(3,966)
Stock-Based Compensation			—						—						—						—						2,874						—						—						2,874
Issuance of Shares under Equity Plans			(207)						(2,539)						496						248						(248)						—						—						(2,539)
Net Earnings			—						—						—						—						—						12,798						—						12,798
Unrealized (Loss) on Derivative Instruments, net of tax			—						—						—						—						—						—						(990)						(990)
Foreign Currency Translation Adjustment, net of tax			—						—						—						—						—						—						324						324
Balance, March 31, 2023			(5,687)						$	(141,292)					36,596						$	18,298					$	741,054					$	87,905					$	(2,062)					$	703,903
Cash Dividends, $0.125 per share			—						—						—						—						—						(3,874)						—						(3,874)
Stock-Based Compensation			—						—						—						—						2,913						—						—						2,913
Issuance of Shares under Equity Plans			—						—						24						12						48						—						—						60
Acquisition of Treasury Stock			(66)						(804)						—						—						—						—						—						(804)
Net Earnings			—						—						—						—						—						6,517						—						6,517
Unrealized Gain on Derivative Instruments, net of tax			—						—						—						—						—						—						1,685						1,685
Foreign Currency Translation Adjustment, net of tax			—						—						—						—						—						—						180						180
Balance, June 30, 2023			(5,753)						$	(142,096)					36,620						$	18,310					$	744,015					$	90,548					$	(197)					$	710,580

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			Treasury Stock												Common Stock												Additional Paid-in Capital						Retained Earnings						Accumulated Other Comprehensive Loss						Total Shareholders’ Equity
(In Thousands, Except Per Share)			Shares						Amount						Shares						Amount
Balance, December 31, 2021			(4,580)						$	(121,804)					35,559						$	17,779					$	724,384					$	98,546					$	(739)					$	718,166
Cash Dividends, $0.11 per share			—						—						—						—						—						(3,584)						—						(3,584)
Stock-Based Compensation			—						—						—						—						3,611						—						—						3,611
Issuance of Shares Under Equity Plans			(163)						(3,541)						410						205						(153)						—						—						(3,489)
Acquisition of Treasury Stock			(262)						(5,720)						—						—						—						—						—						(5,720)
Net Earnings			—						—						—						—						—						21,532						—						21,532
Unrealized Gain on Fuel Hedge Derivative Instrument			—						—						—						—						—						—						154						154
Foreign Currency Translation Adjustment			—						—						—						—						—						—						238						238
Balance, March 31, 2022			(5,005)						$	(131,065)					35,969						$	17,984					$	727,842					$	116,494					$	(347)					$	730,908
Cash Dividends, $0.11 per share			—						—						—						—						—						(3,541)						—						(3,541)
Stock-Based Compensation			—						—						—						—						3,224						—						—						3,224
Issuance of Shares Under Equity Plans			—						—						68						35						825						—						—						860
Acquisition of Treasury Stock			(255)						(5,335)						—						—						—						—						—						(5,335)
Net Loss			—						—						—						—						—						(5,342)												(5,342)
Unrealized Gain on Fuel Hedge Derivative Instrument			—						—						—						—						—						—						85						85
Foreign Currency Translation Adjustment			—						—						—						—						—						—						(346)						(346)
Balance, June 30, 2022			(5,260)						$	(136,400)					36,037						$	18,019					$	731,891					$	107,611					$	(608)					$	720,513

Fair Value Measurement

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value:

Level 1—Valuations based on quoted prices for identical assets and liabilities in active markets.

Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3—Valuations based on unobservable inputs reflecting the Company's own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.

The fair values of the Company's assets and liabilities as of June 30, 2023 and December 31, 2022 are further described in Note 3 to these condensed consolidated financial statements.

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Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) ("AOCI") by component for the six months ended June 30, 2023 and June 30, 2022 are summarized below:

			Six Months Ended June 30, 2023
(In Thousands)			Derivative Instruments			Foreign Currency			Total
Balance at December 31, 2022			$	(17)		$	(1,379)		$	(1,396)
Other Comprehensive Income, net of Tax			695			504			1,199
Balance at June 30, 2023			$	678		$	(875)		$	(197)

			Six Months Ended June 30, 2022
(In Thousands)			Derivative Instruments			Foreign Currency			Total
Balance at December 31, 2021			$	—		$	(739)		$	(739)
Other Comprehensive Income (Loss), net of Tax			239			(108)			131
Balance at June 30, 2022			$	239		$	(847)		$	(608)

Recent Accounting Pronouncements

There were no new accounting standards that had a material impact on the Company’s condensed consolidated financial statements during the six months ended June 30, 2023, and there were no other new accounting standards or pronouncements that were issued but not yet effective as of June 30, 2023 that the Company expects to have a material impact on its condensed consolidated financial statements.

BrandsMart U.S.A. Acquisition

On April 1, 2022, the Company completed the previously announced acquisition of all of the issued and outstanding shares of capital stock of BrandsMart U.S.A. Founded in 1977, BrandsMart U.S.A. is one of the leading appliance and consumer electronics retailers in the southeastern United States and one of the largest appliance retailers in the country, with ten stores in Florida and Georgia and a growing e-commerce presence on brandsmartusa.com. The Company paid total consideration of approximately $230 million in cash under the terms of the agreement and additional amounts for working capital adjustments and transaction related fees. Consideration transferred also included the off-market value associated with certain operating leases entered into in conjunction with the transaction, which is further described in the table below.

Management believes that the BrandsMart U.S.A. acquisition will strengthen the Company's ability to deliver on its mission of enhancing people’s lives by providing easy access to high quality furniture, appliances, electronics, and other home goods through affordable lease-to-own and retail purchase options. Management also believes that value creation opportunities include leveraging the Company's lease-to-own expertise to provide BrandsMart U.S.A.'s customers enhanced payment options and offering a wider selection of products to millions of Aaron's customers, as well as generating procurement savings and other cost synergies.

The BrandsMart U.S.A. acquisition has been accounted for as a business combination, and the BrandsMart results of operations are included in the Company's results of operations from the April 1, 2022 acquisition date. BrandsMart contributed revenues of $143.8 million and $287.9 million during the three and six months ended June 30, 2023, and $181.4 million during the three and six months ended June 30, 2022, respectively. BrandsMart also contributed net earnings of $1.1 million and $0.2 million during the three and six months ended June 30, 2023, and net losses of $15.9 million during the three and six months ended June 30, 2022, respectively.

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Acquisition Accounting

The consideration transferred and the estimated fair values of the assets acquired and liabilities assumed in the BrandsMart U.S.A. acquisition as of the April 1, 2022 acquisition date are as follows:

(In Thousands)			Preliminary Amounts Recognized as of Acquisition Date1			2023 Measurement Period Adjustments2			Final Amounts Recognized as of Acquisition Date
Cash Consideration to BrandsMart U.S.A.			$	230,000		$	—		$	230,000
Acquired Cash			15,952			—			15,952
Estimated Excess Working Capital, net of Cash			35,599			—			35,599
Non-Cash Off-Market Lease Agreement3			6,823			—			6,823
Aggregate Consideration Transferred			288,374			—			288,374
Total Purchase Consideration, Net of Cash Acquired			272,422			—			272,422
Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed
Accounts Receivable			4,310			—			4,310
Merchandise Inventories			124,064			173			124,237
Property, Plant and Equipment			22,053			(1,361)			20,692
Operating Lease Right-of-Use Assets			160,210			—			160,210
Other Intangibles4			122,950			—			122,950
Prepaid Expenses and Other Assets5			9,049			(80)			8,969
Total Identifiable Assets Acquired			442,636			(1,268)			441,368
Accounts Payable and Accrued Expenses			25,340			(2,050)			23,290
Customer Deposits and Advance Payments			25,332			1,822			27,154
Operating Lease Liabilities			158,712			—			158,712
Debt			15,540			—			15,540
Total Liabilities Assumed			224,924			(228)			224,696
Net Assets Acquired			217,712			(1,040)			216,672
Goodwill6			54,710			1,040			55,750
Total Estimated Fair Value of Net Assets Acquired			$	272,422		$	—		$	272,422

1 As previously reported in the notes to the consolidated and combined financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022.

2 The measurement period adjustments recorded in 2023 primarily relate to opening balance sheet adjustments to certain asset and liability balances further illustrated in the table above.

3 Effective as of the acquisition date, the Company entered into lease agreements for six store locations retained by the sellers of BrandsMart U.S.A. The agreement includes initial terms of ten years, with options to renew each location for up to 20 years thereafter. The annual rent is considered to be above market. The value of the off-market element of the lease agreements has been included in consideration transferred and as a reduction to the operating lease right-of-use-asset.

4 Identifiable intangible assets are further disaggregated in the table set forth below.

5 Includes restricted cash of $2.5 million at the acquisition date that was held as collateral for BrandsMart U.S.A.'s workers' compensation and general liability insurance policies.

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6 The purchase price exceeded the fair value of the net assets acquired, which resulted in the recognition of goodwill, all of which is expected to be deductible for tax purposes. Goodwill is comprised of synergies created from the expected future benefits to the Company, including those related to the expansion of BrandsMart stores into new markets, expanded product assortment, procurement synergies, the projected growth of the BrandsMart Leasing business, and certain other intangible assets that do not qualify for separate recognition, such as an assembled workforce. See Note 1 to these condensed consolidated financial statements for further discussion of the identification of the Company's reporting units and the allocation of goodwill and Note 8 for the discussion of operating segments associated with the BrandsMart U.S.A. acquisition.

Intangible assets attributable to the BrandsMart U.S.A. acquisition are comprised of the following:

			Fair Value (In Thousands)						Weighted Average Life (In Years)
Trade Names			$	108,000					20.0
Non-Compete Agreements			250						3.0
Customer List			14,700						4.0
Total Acquired Intangible Assets			$	122,950

The Company incurred $0.5 million and $2.4 million, and $8.0 million and $11.5 million of transaction costs during the three and six months ended June 30, 2023, and June 30, 2022, respectively, in connection with the acquisition of BrandsMart U.S.A. These costs were included within "Acquisition-Related Costs" in the condensed consolidated statements of earnings. Acquisition-Related Costs that will affect the Company's income statement throughout the remainder of 2023 are not expected to be material.

Pro Forma Financial Information

The following table presents unaudited consolidated pro forma information as if the acquisition of BrandsMart U.S.A. had occurred on January 1, 2021, compared to actual, historical results.

(Unaudited)						Three Months Ended June 30, 2022
(In Thousands)									As Reported			Pro Forma Combined Results
Revenues									$	610,384		$	610,384
(Losses) Earnings Before Income Taxes									(13,474)			17,609
Net (Losses) Earnings									$	(5,342)		$	17,908

(Unaudited)						Six Months Ended June 30, 2022
(In Thousands)									As Reported			Pro Forma Combined Results
Revenues									$	1,066,466		$	1,239,237
Earnings Before Income Taxes									15,431			53,053
Net Earnings									$	16,190		$	44,068

The unaudited pro forma combined financial information does not reflect the costs of any integration activities or dis-synergies, or benefits that may result from future costs savings due to revenue synergies, procurement savings or operational efficiencies expected to result from the BrandsMart U.S.A. acquisition. Accordingly, the unaudited pro forma financial information above is not intended to represent or be indicative of the consolidated results of operations of the Company that would have been reported had the BrandsMart U.S.A. acquisition been completed as of the dates presented, and should not be construed as representative of the future consolidated results of operations or financial condition of the combined entity.

The unaudited pro forma combined financial information for the three and six months ended June 30, 2022 includes adjustments to, among other things, record depreciation expense, amortization expense and income taxes based upon the fair value allocation of the purchase price to BrandsMart U.S.A.'s tangible and intangible assets acquired and liabilities assumed as though the acquisition had occurred on January 1, 2021.

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Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The fair value of the Company's current financial assets and liabilities, such as cash and cash equivalents, accounts receivable and accounts payable, approximate their carrying values due to their short-term nature. The Company's outstanding debt borrowings as of June 30, 2023 and December 31, 2022 were subject to a variable interest rate. Therefore, the fair value of these borrowings also approximates its carrying value. Debt borrowings are measured within Level 2 of the fair value hierarchy. The Company also measures certain non-financial assets at fair value on a nonrecurring basis, such as goodwill, intangible assets, operating lease right-of-use assets, property, plant, and equipment and assets held for sale, in connection with periodic evaluations for potential impairment.

The following table summarizes financial liabilities measured at fair value on a recurring basis:

(In Thousands)			June 30, 2023																		December 31, 2022
			Level 1						Level 2						Level 3						Level 1						Level 2						Level 3
Deferred Compensation Liability			$	—					$	(10,015)					$	—					$	—					$	(8,621)					$	—
Interest Rate Swap Asset (Liability)			$	—					$	980					$	—					$	—					$	—					$	—

The Company maintains The Aaron's Company, Inc. Deferred Compensation Plan, which is an unfunded, nonqualified deferred compensation plan for a select group of management, highly compensated employees and non-employee directors. The liability represents benefits accrued for plan participants and is valued at the quoted market prices of the participants’ investment elections, which consist of equity and debt "mirror" funds. As such, the Company has classified the deferred compensation liability as a Level 2 liability, which is recorded in accounts payable and accrued expenses in the condensed consolidated balance sheets.

In March 2023, the Company entered into an interest rate swap agreement for an aggregate notional amount of $100.0 million which is further described in Note 1 to these condensed consolidated financial statements. The fair value of the interest rate swap agreement is derived by using widely accepted valuation techniques and reflects the contractual terms of the interest rate swap including the period to maturity and uses observable market-based inputs, including interest rate curves. The fair value associated with the interest rate swap is recorded within prepaid expenses and other assets (when the resulting fair value is an asset) or accounts payable and accrued expenses (when the resulting fair value is a liability) within the Company's condensed consolidated balance sheets.

Non-Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The following table summarizes non-financial assets measured at fair value on a nonrecurring basis:

(In Thousands)			June 30, 2023																		December 31, 2022
			Level 1						Level 2						Level 3						Level 1						Level 2						Level 3
Assets Held for Sale			$	—					$	1,113					$	—					$	—					$	1,857					$	—

Assets classified as held for sale are recorded at the lower of carrying value or fair value less estimated costs to sell, and any adjustment is recorded in other operating expenses, net or restructuring expenses, net (if the asset is a part of the Company's restructuring programs as described in Note 7 to these condensed consolidated financial statements) in the condensed consolidated statements of earnings. The highest and best use of the primary components of assets held for sale are as real estate land parcels for development or real estate properties for use or lease; however, the Company has chosen not to develop or use these properties, and plans to sell the properties to third parties as quickly as practicable.

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The following is a summary of the Company's debt, net of unamortized debt issuance costs as applicable:

(In Thousands)			June 30, 2023						December 31, 2022
Revolving Facility			$	15,000					$	69,250
Term Loan, Due in Installments through April 20271			171,063						173,163
Total Debt			186,063						242,413
Less: Current Maturities			4,375						23,450
Long-Term Debt			$	181,688					$	218,963

1 Includes unamortized debt issuance costs of $0.7 million and $0.7 million as of June 30, 2023 and December 31, 2022. The Company has included $2.5 million and $2.9 million of debt issuance costs as of June 30, 2023 and December 31, 2022, respectively, related to the new and previous revolving credit facility, within prepaid expenses and other assets in the condensed consolidated balance sheets.

Revolving Credit Facility and Term Loan

To finance the BrandsMart U.S.A. acquisition, on April 1, 2022 the Company entered into a new unsecured credit facility (the "Credit Facility") which replaced its previous $250 million unsecured credit facility dated as of November 9, 2020 (as amended, the "Previous Credit Facility"). The Previous Credit Facility is further described in Note 8 to the consolidated and combined financial statements of the 2022 Annual Report. The Credit Facility provides for a $175 million term loan (the "Term Loan") and a $375 million revolving credit facility (the "Revolving Facility"), which includes (i) a $35 million sublimit for the issuance of letters of credit on customary terms, and (ii) a $35 million sublimit for swing line loans on customary terms. The Company pays a commitment fee on unused balances related to the revolving facility, which ranges from 0.20% to 0.30% as determined by the Company's ratio of total net debt to EBITDA (as defined by the agreement).

On April 1, 2022, the Company borrowed $175 million under the Term Loan and $117 million under the Revolving Facility to finance the purchase price for the BrandsMart U.S.A. acquisition and other customary acquisition and financing-related closing costs and adjustments. The Company expects that future additional borrowings under the Revolving Facility will be used to provide for working capital and capital expenditures, to finance future permitted acquisitions and for other general corporate purposes. As of June 30, 2023, $171.7 million and $15.0 million remained outstanding under the Term Loan and Revolving Facility, respectively, compared to $173.9 million and $69.3 million outstanding at December 31, 2022. Amounts outstanding under the letters of credit, which reduce availability under the Revolving Facility, were $19.0 million and $17.3 million as of June 30, 2023 and December 31, 2022, respectively.

Borrowings under the Revolving Facility and the Term Loan bear interest at a rate per annum equal to, at the option of the Company, (i) the forward-looking term rate based on SOFR plus an applicable margin ranging between 1.50% and 2.25%, based on the Company's Total Net Debt to EBITDA Ratio, or (ii) the base rate (as defined in the Credit Facility) plus an applicable margin, which is 1.00% lower than the applicable margin for SOFR loans.

The loans and commitments under the Revolving Facility mature or terminate on April 1, 2027. The Term Loan amortizes in quarterly installments, commencing on December 31, 2022, in an aggregate annual amount equal to (i) 2.50% of the original principal amount of the Term Loan during the first and second years after the closing date, (ii) 5.00% of the original principal amount of the Term Loan during the third, fourth and fifth years after the closing date, with the remaining principal balance of the Term Loan to be due and payable in full on April 1, 2027.

Franchise Loan Facility Amendment

On April 1, 2022, the Company also entered into a new $12.5 million unsecured franchise loan facility (the "Franchise Loan Facility"), which replaced its previous $15.0 million amended and restated unsecured franchise loan facility dated as of November 10, 2021. The Franchise Loan Facility operates as a guarantee by the Company of certain debt obligations of certain Aaron's franchisees (the "Borrower") under a franchise loan program.

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In the event these franchisees are unable to meet their debt service payments or otherwise experience an event of default, the Company would be unconditionally liable for the outstanding balance of the franchisees’ debt obligations under the Franchise Loan Facility, which would be due in full within 90 days of such event of default. Borrowings under the Franchise Loan Facility bear interest at a rate per annum equal to SOFR plus an applicable margin ranging between 1.50% and 2.25%, based on the Company's Total Net Debt to EBITDA Ratio (as defined in the Franchise Loan Facility). The Franchise Loan Facility is available for a period of 364 days commencing on April 1, 2022, and permits the Borrower to request extensions for additional 364-day periods. On February 10, 2023, the Company amended its Franchise Loan Facility to extend the maturity date from March 31, 2023 to March 30, 2024. Subsequently on February 23, 2023, the Company amended its Franchise Loan Facility to reduce the total commitment amount from $12.5 million to $10.0 million.

Financial Covenants

The Credit Facility and the Franchise Loan Facility contain customary financial covenants including (a) a maximum Total Net Debt to EBITDA Ratio of 2.75 to 1.00 and (b) a minimum Fixed Charge Coverage Ratio of 1.75 to 1.00.

If the Company fails to comply with these covenants, the Company will be in default under these agreements, and all borrowings outstanding could become due immediately. Under the Credit Facility and Franchise Loan Facility, the Company may pay cash dividends in any year so long as, after giving pro forma effect to the dividend payment, the Company maintains compliance with its financial covenants and no event of default has occurred or would result from the payment. The Company is in compliance with all covenants under the Credit Facility at June 30, 2023.

The following table disaggregates revenue by source:

			Three Months Ended June 30,									Six Months Ended June 30,
(In Thousands)			2023			2022						2023			2022
Lease Revenues and Fees			$	353,751		$	386,513					$	727,546		$	795,831
Retail Sales			148,046			190,848						298,592			203,455
Non-Retail Sales			22,800			27,042						46,735			54,869
Franchise Royalties and Fees			5,588			5,792						11,486			11,910
Other			187			189						374			401
Total Revenues1			$	530,372		$	610,384					$	1,084,733		$	1,066,466

1 Includes revenues from Canadian operations of $4.3 million and $8.7 million during the three and six months ended June 30, 2023, respectively, (three and six months ended June 30, 2022: $4.8 million and $9.7 million, respectively), which are primarily lease revenues and fees.

Lease Revenues and Fees

The Aaron's Business segment, which includes BrandsMart Leasing, provides lease merchandise, consisting of furniture, appliances, electronics, computers, and other home goods to their customers for lease under certain terms agreed to by the customer. The Aaron's Business segment offers leases with flexible ownership plans that can be generally renewed weekly, bi-weekly, semi-monthly, or monthly up to 12, 18 or 24 months and does not require deposits upon inception of customer agreements. The customer has the right to acquire ownership either through an early purchase option or through payment of all required lease payments through the end of the ownership plan. Aaron's also offers customers the option to obtain a membership in the Aaron’s Club program. The benefits to customers of the Aaron's Club program are separated into three general categories: (a) lease protection benefits; (b) health & wellness discounts; and (c) dining, shopping and consumer savings. Lease agreements offered by the Aaron's Business segment including the Aaron's Club program memberships and BrandsMart Leasing, are cancellable at any time by either party without penalty, and as such, these offerings are renewable period to period arrangements.

Lease revenues related to the leasing of merchandise and Aaron's Club membership fees are recognized as revenue in the month they are earned. 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. Lease payments due but not received prior to month end are recorded as accounts receivable in the accompanying condensed consolidated balance sheets. Lease revenues are recorded net of a provision for returns and uncollectible renewal payments.

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All of Aaron's customer lease agreements, including BrandsMart Leasing, are considered operating leases. The Company maintains ownership of the lease merchandise until all payment obligations are satisfied under lease agreements. Initial direct costs related to customer agreements are expensed as incurred and have been classified as other operating expenses, net in the condensed consolidated statements of earnings. The statement of earnings effects of expensing the initial direct costs as incurred are not materially different from amortizing initial direct costs over the lease ownership plan.

Substantially all lease revenues and fees were within the scope of ASC 842, Leases, during the three and six months ended June 30, 2023 and 2022. Included in lease revenues and fees above, the Company had $6.2 million and $12.5 million of other revenue during the three and six months ended June 30, 2023, respectively, (three and six months ended June 30, 2022: $7.0 million and $14.0 million, respectively) within the scope of ASC 606, Revenue from Contracts with Customers, which is included in lease revenues and fees above. Lease revenues and fees are recorded within lease revenues and fees in the accompanying condensed consolidated statements of earnings.

Retail Sales

All retail sales revenue is within the scope of ASC 606, Revenue from Contracts with Customers, during the three and six months ended June 30, 2023 and 2022.

Aaron's Business

Revenues from the retail sale of lease merchandise to individual consumers are recognized at the point of sale and are recorded within retail sales in the accompanying condensed consolidated statements of earnings. Generally, the transfer of control occurs near or at the point of sale for retail sales. Aaron's Business retail sales are not subject to a returns policy.

BrandsMart

Revenues from the retail sale of merchandise inventories are recorded within retail sales in the accompanying condensed consolidated statement of earnings and are recognized at a point in time that the Company has satisfied its performance obligation and transferred control of the product to the respective customer. Revenues associated with retail sales transactions for which control has not transferred are deferred and are recorded within customer deposits and advance payments within the accompanying consolidated balance sheets.

Retail sales at the BrandsMart segment, both in store and online, are subject to the segment's 30-day return policy. Accordingly, an allowance, based on historical returns experience, for sales returns is recorded as a component of retail sales in the period in which the related sales are recorded as well as an asset for the returned merchandise. The return asset and allowance for sales returns as of June 30, 2023 was $2.4 million and $3.2 million, respectively, compared to $3.0 million and $4.0 million as of December 31, 2022, respectively. The return asset and allowance for sales returns was recorded within prepaid and other assets and accounts payable and accrued expenses within the accompanying consolidated balance sheets, respectively.

Additional protection plans can be purchased by BrandsMart U.S.A. customers that provides extended warranty coverage on their product purchases, with payment being due for this protection at the point of sale. A third-party underwriter assumes the risk associated with the coverage and is primarily responsible for fulfillment. The Company is an agent to the contract and records the fixed commissions within retail sales in the accompanying condensed consolidated statements of earnings on a net basis.

Non-Retail Sales

Revenues for the non-retail sale of merchandise to Aaron's franchisees are recognized when control transfers to the franchisee, which is upon delivery of the merchandise and are recorded within non-retail sales in the accompanying condensed consolidated statements of earnings. All non-retail sales revenue is within the scope of ASC 606, Revenue from Contracts with Customers, during the three and six months ended June 30, 2023 and 2022.

Franchise Royalties and Fees

We have existing agreements with our current Aaron's franchisees to govern the operations of franchised stores. Our standard agreement is for a term of ten years, with one ten-year renewal option. Franchisees are obligated to remit to us royalty payments of 6% of the weekly cash revenue payments received, which is recognized as the fees become due.

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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 to these condensed consolidated financial statements for additional discussion of the franchise-related guarantee obligation. The Company also charges fees for advertising efforts that benefit the franchisees, which are recognized at the time the advertising takes place.

Substantially all franchise royalties and fee revenue is within the scope of ASC 606, Revenue from Contracts with Customers. Of the franchise royalties and fees, $4.4 million and $9.2 million during the three and six months ended June 30, 2023, respectively (three and six months ended June 30, 2022: $4.6 million and $9.5 million, respectively), is related to franchise royalty income that is recognized as the fees become due. The remaining revenue is primarily related to advertising fees charged to franchisees. Franchise royalties and fees are recorded within franchise royalties and other revenues in the accompanying condensed consolidated statements of earnings.

Guarantees

The Company has guaranteed certain debt obligations of some of its Aaron's franchisees under a franchise loan program (the "Franchise Loan Facility") as described in further detail in Note 4 to these condensed consolidated financial statements. The Company has recourse rights to franchisee assets securing the debt obligations, which consist primarily of lease merchandise and fixed assets. Since the inception of the franchise loan program in 1994, the Company's losses associated with the program have been insignificant. However, the Company could incur losses that could be significant in a future period due to potential adverse trends in the liquidity and/or financial performance of Aaron's franchisees resulting in an event of default or impending defaults by franchisees.

The Company entered into a new Franchise Loan Facility agreement on April 1, 2022, which reduced the total commitment under the Franchise Loan Facility from $15.0 million to $12.5 million and extended the commitment termination date to March 31, 2023. On February 10, 2023, the Company amended its Franchise Loan Facility to extend the maturity date from March 31, 2023 to March 30, 2024. Subsequently on February 23, 2023, the Company amended its Franchise Loan Facility to reduce the total commitment amount from $12.5 million to $10.0 million. At June 30, 2023, the maximum amount that the Company would be obligated to repay in the event franchisees defaulted was $4.5 million. The Company is subject to financial covenants under the Franchise Loan Facility as detailed in Note 4 to these condensed consolidated financial statements. At June 30, 2023, the Company was in compliance with all covenants under the Franchise Loan Facility agreement.

The Company records a liability related to estimated future losses from repaying the franchisees' outstanding debt obligations upon any possible future events of default. This liability is included in accounts payable and accrued expenses in the condensed consolidated balance sheets and was $1.0 million and $1.3 million at June 30, 2023 and December 31, 2022, respectively. The balances at June 30, 2023 and December 31, 2022 included qualitative consideration of potential losses associated with uncertainties impacting the operations and liquidity of our franchisees. Uncertainties include inflationary and other economic pressures in the current macroeconomic environment.

Legal Proceedings

From time to time, the Company is party to various legal and regulatory proceedings arising in the ordinary course of business, certain of which have been described below. The Company establishes an accrued liability for legal and regulatory proceedings when it determines that a loss is both probable and the amount of the loss can be reasonably estimated. The Company continually monitors its litigation and regulatory exposure and reviews the adequacy of its legal and regulatory reserves on a quarterly basis. The amount of any loss ultimately incurred in relation to matters for which an accrual has been established may be higher or lower than the amounts accrued for such matters due to the inherent uncertainty in litigation, regulatory and similar adversarial proceedings, and substantial losses from these proceedings or the costs of defending them could have a material adverse impact upon the Company’s business, financial position, and results of operations.

The Company had accrued $0.4 million and $2.7 million at June 30, 2023 and December 31, 2022, respectively, for pending legal and regulatory matters for which it believes losses are probable and is management’s best estimate of its exposure to loss. The Company records these liabilities in accounts payable and accrued expenses in the condensed consolidated balance sheets. The Company estimates that the aggregate range of reasonably possible loss in excess of accrued liabilities for such probable loss contingencies is between zero and $0.5 million.

---

At June 30, 2023, the Company estimated that the aggregate range of loss for all material pending legal and regulatory proceedings for which a loss is reasonably possible, but less likely than probable (i.e., excluding the contingencies described in the preceding paragraph), is between zero and $0.5 million. Those matters for which a reasonable estimate is not possible are not included within estimated ranges and, therefore, the estimated ranges do not represent the Company's maximum loss exposure. The Company's estimates for legal and regulatory accruals, aggregate probable loss amounts and reasonably possible loss amounts, are all subject to the uncertainties and variables described above.

Other Contingencies

Management regularly assesses the Company's insurance deductibles, monitors litigation and regulatory exposure with the Company's attorneys, and evaluates its loss experience. The Company also enters into various contracts in the normal course of business that may subject it to risk of financial loss if counterparties fail to perform their contractual obligations.

As management continues to execute on its long-term strategic plan, additional benefits and charges are expected to result from our restructuring programs. The extent of any future charges related to our restructuring programs are not currently estimable and depend on various factors including the timing and scope of future cost optimization initiatives.

Operational Efficiency and Optimization Restructuring Program

During the third quarter of 2022, the Company initiated an operational efficiency and optimization restructuring program intended to strengthen operational efficiencies and reduce the Company’s overall costs. Management believes that this restructuring program will help the Company sharpen its operational focus, optimize its cost profile, allocate capital resources towards long-term strategic objectives, and generate incremental value for shareholders through investments in technological capabilities, and fulfillment center logistics competencies. Since initiation, the program has resulted in the closure or consolidation of 29 Company-operated Aaron's stores. This program also includes the hub and showroom model to optimize labor and other operating expenses in markets, store labor realignments, rationalization of the Company's supply chain, the centralization and restructuring of store support center, operations, and multi-unit store oversight functions, as well as other real estate and third party spend costs reductions.

Total net restructuring expenses under the Operational Efficiency and Optimization Restructuring Program related to the initiatives described above were $1.6 million and $4.4 million during the three and six months ended June 30, 2023. Such expenses were recorded within the Unallocated Corporate category for segment reporting and were comprised mainly of professional advisory fees in the three months ended June 30, 2023 and severance charges in the three months ended March 31, 2023, primarily related to the Company's January 2023 headcount reduction of its store support center and Aaron's Business store oversight functions. Throughout the six months ended June 30, 2023 we also incurred continuing variable occupancy costs related to closed stores, operating lease right-of-use asset impairment charges and fixed asset impairment charges.

Since inception of the operational efficiency and optimization restructuring program, the Company has incurred charges of $16.0 million under the plan. These cumulative charges are primarily comprised of operating lease right-of-use asset and fixed impairment charges, continuing variable occupancy costs incurred related to closed stores, professional advisory fees, and severance related to reductions in store support center and field support staff headcount.

Real Estate Repositioning and Optimization Restructuring Program

During the first quarter of 2020, the Company initiated a real estate repositioning and optimization restructuring program. This program includes a strategic plan to remodel, reposition, and consolidate our Company-operated Aaron's store footprint over the next three to four years. We believe that such strategic actions will allow Aaron's to continue to successfully serve our markets while continuing to utilize our growing aarons.com platform. Management expects that this strategy, along with our increased use of technology, will enable us to reduce store count while retaining a significant portion of our existing customer relationships as well as attract new customers. Since initiation, the program has resulted in the closure, consolidation, or relocation of 232 Company-operated Aaron's stores during 2020, 2021, 2022 and the first six months of 2023. This program also resulted in the closure of one administrative store support building, a further rationalization of our store support center staff, which included a reduction in employee headcount in those areas to more closely align with current business conditions. As of June 30, 2023, we have identified approximately 30 remaining Aaron's stores for closure, consolidation, or relocation that have not yet been closed and vacated, which are expected to close during the remainder of 2023.

Total net restructuring expenses under the real estate repositioning and optimization restructuring program were $3.3 million and $5.7 million during the three and six months ended June 30, 2023. Restructuring expenses were recorded within the Unallocated Corporate category of segment reporting and were comprised mainly of continuing variable occupancy costs

---

incurred related to closed stores and operating lease right-of-use asset and fixed asset impairment charges related to the vacancy or planned vacancy of stores identified for closure.

Since inception of the real estate repositioning and optimization program, the Company has incurred charges of $67.3 million under the plan. These cumulative charges are primarily comprised of operating lease right-of-use asset and fixed impairment charges, losses recognized related to contractual lease obligations, and severance related to reductions in store support center and field support staff headcount.

The following table summarizes restructuring charges for the three and six months ended June 30, 2023 and 2022, respectively, under the Company's restructuring programs:

			Three Months Ended June 30,												Six Months Ended June 30,
(In Thousands)			2023						2022						2023						2022
Right-of-Use Asset Impairment			$	861					$	3,158					$	1,635					$	4,336
Operating Lease Charges1			2,712						922						4,620						2,364
Fixed Asset Impairment			58						1,206						180						1,451
Severance2			(372)						—						1,830						418
Other Expenses3			1,576						266						1,859						380
Net Losses (Gain) on Sale of Store Properties and Related Assets			—						30						—						(32)
Total Restructuring Expenses, Net			$	4,835					$	5,582					$	10,124					$	8,917

1 Includes an accrual of $1.4 million for deferred maintenance on previously restructured properties.

2 During the three months ended June 30, 2023, the Company had a partial reversal of severance charges that were originally estimated in connection with the Company's January 2023 headcount reduction.

3 Includes professional advisory fees and net gains related to the sale of store properties and related assets.

The following table summarizes the activity for the six months ended June 30, 2023 and the corresponding accrual balance as of June 30, 2023 for the restructuring programs:

(In Thousands)			Severance			Operating Lease Charges1,2			Professional Advisory Fees
Balance at January 1, 2023			$	695		$	2,200		$	1,032
Restructuring Charges (Reversals)			1,830			1,409			1,440
Payments			(2,525)			(2,200)			(1,845)
Balance at June 30, 2023			$	—		$	1,409		$	627

1 Operating lease charge liabilities outstanding at January 1, 2023 represent expenses related to a real estate-related settlement which remained payable at December 31, 2022 and was subsequently paid during the first quarter of 2023.

Segment Reporting

For all periods prior to April 1, 2022, the Company only had one operating and reportable segment. Effective as of April 1, 2022 and in connection with the acquisition of BrandsMart U.S.A., the Company updated its reportable segments to align the reportable segments with the current organizational structure and the operating results that the chief operating decision maker regularly reviews to analyze performance and allocate resources, which includes two operating and reportable segments: Aaron's Business and BrandsMart, along with an Unallocated Corporate category for remaining unallocated costs.

---

The Aaron's Business segment includes the operations of the Pre-Spin Aaron's business (as described in the 2022 Annual Report), which continued after the separation to provide consumers with LTO and retail purchase solutions through the Company's Aaron's stores in the United States and Canada and the aarons.com e-commerce platform. This operating segment also supports franchisees of its Aaron's stores. In addition, the Aaron's Business segment includes the operations of BrandsMart Leasing, which offers a lease-to-own solution to customers of BrandsMart U.S.A., and Woodhaven, which manufactures and supplies a significant portion of the upholstered furniture leased and sold in Company-operated and franchised Aaron's stores.

The BrandsMart segment includes the operations of BrandsMart U.S.A. (other than BrandsMart Leasing), which is one of the leading appliance and consumer electronics retailers in the southeastern United States and one of the largest appliance retailers in the country with ten stores in Florida and Georgia and a growing e-commerce presence on brandsmartusa.com. The results of BrandsMart have been included in the Company's consolidated results from the April 1, 2022 acquisition date.

Measurement of Segment Profit or Loss and Segment Assets

The Company evaluates segment performance based primarily on revenues and earnings (losses) from operations before unallocated corporate costs, which are evaluated on a consolidated basis and not allocated to the Company's business segments. Intersegment sales between BrandsMart and the Aaron's Business pertaining to BrandsMart Leasing, are recognized at retail prices. Since the intersegment profit affects cost of goods sold, depreciation and lease merchandise valuation, they are adjusted when intersegment profit is eliminated in consolidation. The Company determines earnings (losses) before income taxes for all reportable segments in accordance with U.S. GAAP.

Unallocated Corporate costs are presented separately and generally include unallocated costs associated with the following: equity-based compensation, interest income and expense, information security, executive compensation, legal and compliance, corporate governance, accounting and finance, human resources and other corporate functions. The Unallocated Corporate category also includes acquisition-related costs, restructuring charges and separation costs for which the individual operating segments are not being evaluated.

The Company does not evaluate performance or allocate resources based on segment asset data, and therefore total segment assets are not presented.

			Three Months Ended June 30, 2023
(In Thousands)			Aaron's Business			BrandsMart			Elimination of Intersegment Revenues			Total
Lease Revenues and Fees			$	353,751		$	—		$	—		$	353,751
Retail Sales			6,615			143,776			(2,345)			148,046
Non-Retail Sales			22,800			—			—			22,800
Franchise Royalties and Fees			5,588			—			—			5,588
Other			187			—			—			187
Total Revenues			$	388,941		$	143,776		$	(2,345)		$	530,372

			Three Months Ended June 30, 2023
(In Thousands)			Aaron's Business			BrandsMart			Unallocated Corporate1			Elimination			Total
Gross Profit			$	246,839		$	35,569		$	—		$	(136)		$	282,272
Earnings (Losses) Before Income Taxes			30,840			1,083			(23,833)			(88)			8,002
Depreciation and Amortization2			18,655			3,390			222			—			22,267
Capital Expenditures			15,629			4,293			1,434			—			21,356

1 The losses before income taxes for the Unallocated Corporate category during the three months ended June 30, 2023 was impacted by restructuring charges of $4.8 million, and BrandsMart U.S.A. acquisition-related costs of $0.5 million.

2 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization.

---

			Three Months Ended June 30, 2022
(In Thousands)			Aaron's Business			BrandsMart			Elimination of Intersegment Revenues			Total
Lease Revenues and Fees			$	386,513		$	—		$	—		$	386,513
Retail Sales			10,709			181,442			(1,303)			190,848
Non-Retail Sales			27,042			—			—			27,042
Franchise Royalties and Fees			5,792			—			—			5,792
Other			189			—			—			189
Total Revenues			$	430,245		$	181,442		$	(1,303)		$	610,384

			Three Months Ended June 30, 2022
(In Thousands)			Aaron's Business			BrandsMart1			Unallocated Corporate2			Elimination			Total
Gross Profit			$	270,611		$	22,875		$	—		$	(339)		$	293,147
Earnings (Losses) Before Income Taxes			29,520			(15,919)			(26,736)			(339)			(13,474)
Depreciation and Amortization3			18,513			3,368			364			—			22,245
Capital Expenditures			29,975			659			1,950			—			32,584

1 Losses before income taxes for the BrandsMart segment during the three months ended June 30, 2022 was impacted by a one-time, non-cash charge for a fair value adjustment to the acquired merchandise inventories of $23.0 million.

2 The losses before income taxes for the Unallocated Corporate category during the three months ended June 30, 2022 was impacted by BrandsMart U.S.A. acquisition-related costs of $8.0 million, restructuring charges of $5.6 million and separation-related costs of $0.2 million.

3 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization.

			Six months ended June 30, 2023
(In Thousands)			Aaron's Business			BrandsMart			Elimination of Intersegment Revenues			Total
Lease Revenues and Fees			$	727,546		$	—		$	—		$	727,546
Retail Sales			14,933			287,934			(4,275)			298,592
Non-Retail Sales			46,735			—			—			46,735
Franchise Royalties and Fees			11,486			—			—			11,486
Other			374			—			—			374
Total Revenues			$	801,074		$	287,934		$	(4,275)		$	1,084,733

			Six months ended June 30, 2023
(In Thousands)			Aaron's Business1			BrandsMart			Unallocated Corporate2			Elimination			Total
Gross Profit			$	507,545		$	70,704		$	—		$	(283)		$	577,966
Earnings (Losses) Before Income Taxes			66,699			195			(49,804)			(196)			16,894
Depreciation and Amortization3			37,358			7,035			444			—			44,837
Capital Expenditures			33,658			5,209			2,698			—			41,565

1 The earnings before income taxes for the Aaron's Business during the six months ended June 30, 2023 includes a $3.8 million receipt from the settlement of a class action lawsuit related to alleged anti-competitive conduct by several manufacturers of cathode ray tubes.

---

2 The losses before income taxes for the Unallocated Corporate category during the six months ended June 30, 2023 was impacted by restructuring charges of $10.1 million, BrandsMart U.S.A. acquisition-related costs of $2.4 million, and separation-related costs of $0.1 million.

3 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization.

			Six months ended June 30, 2022
(In Thousands)			Aaron's Business			BrandsMart			Elimination of Intersegment Revenues			Total
Lease Revenues and Fees			$	795,831		$	—		$	—		$	795,831
Retail Sales			23,316			181,442			(1,303)			203,455
Non-Retail Sales			54,869			—			—			54,869
Franchise Royalties and Fees			11,910			—			—			11,910
Other			401			—			—			401
Total Revenues			$	886,327		$	181,442		$	(1,303)		$	1,066,466

			Six months ended June 30, 2022
(In Thousands)			Aaron's Business			BrandsMart1			Unallocated Corporate2			Elimination			Total
Gross Profit			$	555,558		$	22,875		$	—		$	(339)		$	578,094
Earnings (Loss) Before Income Taxes			81,681			(15,919)			(49,992)			(339)			15,431
Depreciation and Amortization3			36,265			3,368			761			—			40,394
Capital Expenditures			53,235			659			3,793			—			57,687

1 Losses before income taxes for the BrandsMart segment during the six months ended June 30, 2022 were impacted by a one-time, non-cash charge for a fair value adjustment to the acquired merchandise inventories of $23.0 million.

2 Losses before income taxes for the Unallocated Corporate category during the six months ended June 30, 2022 were impacted by BrandsMart U.S.A. acquisition-related costs of $11.5 million, restructuring charges of $8.9 million and separation-related costs of $0.8 million.

3 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization.

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v3.23.2

Cover - shares	6 Months Ended
	Jun. 30, 2023	Jul. 28, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	1-39681
Entity Registrant Name	THE AARON'S COMPANY, INC.
Entity Incorporation, State or Country Code	GA
Entity Tax Identification Number	85-2483376
Entity Address, Address Line One	400 Galleria Parkway SE
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Atlanta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30339-3182
City Area Code	678
Local Phone Number	402-3000
Title of 12(b) Security	Common Stock, $0.50 Par Value
Trading Symbol	AAN
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		30,869,006
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001821393
Current Fiscal Year End Date	--12-31

v3.23.2

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
ASSETS:
Cash and Cash Equivalents	$ 38,369	$ 27,716
Accounts Receivable (net of allowances of $7,898 at June 30, 2023 and $8,895 at December 31, 2022)	30,198	38,191
Lease Merchandise (net of accumulated depreciation and allowances of $426,066 at June 30, 2023 and $431,092 at December 31, 2022)	636,596	693,795
Merchandise Inventories, Net	92,852	95,964
Property, Plant and Equipment, Net	265,061	267,457
Operating Lease Right-of-Use Assets	466,068	459,950
Goodwill	55,750	54,710
Other Intangibles, Net	113,269	118,528
Income Tax Receivable	10,220	5,716
Prepaid Expenses and Other Assets	110,837	96,436
Total Assets	1,819,220	1,858,463
LIABILITIES & SHAREHOLDERS’ EQUITY:
Accounts Payable and Accrued Expenses	260,851	264,043
Deferred Tax Liabilities	87,801	87,008
Customer Deposits and Advance Payments	70,943	73,196
Operating Lease Liabilities	502,982	496,401
Debt	186,063	242,413
Total Liabilities	1,108,640	1,163,061
Commitments and Contingencies (Note 6)
SHAREHOLDERS' EQUITY:
Common Stock, Par Value $0.50 Per Share: Authorized: 112,500,000 Shares at June 30, 2023 and December 31, 2022; Shares Issued: 36,619,930 at June 30, 2023 and 36,100,011 at December 31, 2022	18,310	18,050
Additional Paid-in Capital	744,015	738,428
Retained Earnings	90,548	79,073
Accumulated Other Comprehensive Loss	(197)	(1,396)
Stockholders' equity before treasury stock	852,676	834,155
Less: Treasury Shares at Cost
5,753,552 Shares at June 30, 2023 and 5,480,353 Shares at December 31, 2022	(142,096)	(138,753)
Total Shareholders’ Equity	710,580	695,402
Total Liabilities & Shareholders’ Equity	$ 1,819,220	$ 1,858,463

v3.23.2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Accounts receivable, allowances	$ 7,898	$ 8,895
Lease Merchandise, accumulated depreciation and allowances	$ 426,066	$ 431,092
Common stock, par value (in dollars per share)	$ 0.50	$ 0.50
Common stock, shares authorized (in shares)	112,500,000	112,500,000
Common stock, shares issued (in shares)	36,619,930	36,100,011
Treasury shares (in shares)	5,753,552	5,480,353

v3.23.2

Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
REVENUES:
Revenues	$ 530,372	$ 610,384	$ 1,084,733	$ 1,066,466
COSTS OF REVENUES:
Total cost of revenue	248,100	317,237	506,767	488,372
GROSS PROFIT	282,272	293,147	577,966	578,094
OPERATING EXPENSES:
Personnel Costs	124,945	130,257	256,390	251,367
Other Operating Expenses, Net	121,670	136,387	245,815	240,746
Provision for Lease Merchandise Write-Offs	19,001	22,113	39,161	44,070
Restructuring Expenses, Net	4,835	5,582	10,124	8,917
Separation Costs	0	230	129	770
Acquisition-Related Costs	546	8,033	2,394	11,497
Operating expenses, total	270,997	302,602	554,013	557,367
OPERATING PROFIT (LOSSES)	11,275	(9,455)	23,953	20,727
Interest Expense	(3,910)	(2,463)	(8,268)	(2,813)
Other Non-Operating Income (Expense), Net	637	(1,556)	1,209	(2,483)
EARNINGS (LOSSES) BEFORE INCOME TAXES	8,002	(13,474)	16,894	15,431
INCOME TAX EXPENSE (BENEFIT)	1,485	(8,132)	(2,421)	(759)
NET EARNINGS (LOSSES)	$ 6,517	$ (5,342)	$ 19,315	$ 16,190
EARNINGS (LOSSES) PER SHARE (in dollars per share)	$ 0.21	$ (0.17)	$ 0.63	$ 0.52
EARNINGS (LOSSES) PER SHARE ASSUMING DILUTION (in dollars per share)	$ 0.21	$ (0.17)	$ 0.62	$ 0.51
Lease Revenues and Fees
REVENUES:
Revenues	$ 353,751	$ 386,513	$ 727,546	$ 795,831
COSTS OF REVENUES:
Costs of goods and services sold	117,400	127,772	242,541	264,436
Retail Sales
REVENUES:
Revenues	148,046	190,848	298,592	203,455
COSTS OF REVENUES:
Costs of goods and services sold	111,284	165,228	224,813	174,343
Non-Retail Sales
REVENUES:
Revenues	22,800	27,042	46,735	54,869
COSTS OF REVENUES:
Costs of goods and services sold	19,416	24,237	39,413	49,593
Franchise Royalties and Other Revenues
REVENUES:
Revenues	$ 5,775	$ 5,981	$ 11,860	$ 12,311

v3.23.2

Condensed Consolidated Statements Of Comprehensive Income (Losses) (Unaudited) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net Earnings (Losses)		$ 6,517	$ (5,342)	$ 19,315	$ 16,190
Other Comprehensive Income (Losses):
Unrealized Gain on Derivative Instruments, net of Tax	[1]	1,685	85	695	239
Foreign Currency Translation Adjustment, net of tax	[1]	180	(346)	504	(108)
Total Other Comprehensive Income (Losses)		1,865	(261)	1,199	131
Comprehensive Income (Losses)		$ 8,382	$ (5,603)	$ 20,514	$ 16,321
[1] 1 The Unrealized Gain on Derivative Instruments is presented net of tax expense of $0.5 million and $0.2 million for the three and six months ended June 30, 2023, respectively, and the Foreign Currency Translation Adjustment is presented net of tax expense of $0.1 million and a tax benefit of $0.3 million for the three and six months ended June 30, 2023, respectively. The tax components of the prior year amounts are insignificant.

v3.23.2

Condensed Consolidated Statements Of Comprehensive Income (Losses) (Unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Unrealized Gain on Derivative Instruments, Tax Expense	$ 0.5	$ 0.2
Foreign Currency Translation Adjustment, Tax Expense (Benefit)	$ 0.1	$ (0.3)

v3.23.2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
OPERATING ACTIVITIES:
Net Earnings (Losses)	$ 19,315	$ 16,190
Adjustments to Reconcile Net Earnings to Cash Provided by Operating Activities:
Depreciation of Lease Merchandise	238,783	260,507
Other Depreciation and Amortization	44,837	40,395
Provision for Lease Merchandise Write-Offs	39,161	44,070
Non-Cash Inventory Fair Value Adjustment	0	23,023
Accounts Receivable Provision	21,111	17,484
Stock-Based Compensation	5,835	6,835
Deferred Income Taxes	(6,553)	(1,644)
Impairment of Assets	1,716	6,048
Non-Cash Lease Expense	58,755	53,850
Other Changes, Net	(3,398)	(6,349)
Changes in Operating Assets and Liabilities:
Lease Merchandise	(221,851)	(279,949)
Merchandise Inventories	3,285	(2,480)
Accounts Receivable	(13,019)	(13,189)
Prepaid Expenses and Other Assets	(6,935)	5,829
Income Tax Receivable	(4,504)	(3,144)
Operating Lease Right-of-Use Assets and Liabilities	(59,811)	(59,642)
Accounts Payable and Accrued Expenses	1,712	(33,909)
Customer Deposits and Advance Payments	(4,075)	(16,849)
Cash Provided by Operating Activities	114,364	57,076
INVESTING ACTIVITIES:
Purchases of Property, Plant, and Equipment	(41,565)	(57,687)
Proceeds from Dispositions of Property, Plant, and Equipment	4,878	10,191
Proceeds from Other Investing-Related Activities	0	968
Cash Used in Investing Activities	(36,687)	(314,217)
FINANCING ACTIVITIES:
Repayments on Swing Line Loans, Net	(19,250)	(10,000)
Proceeds from Revolver and Term Loan	31,094	291,700
Repayments on Revolver and Term Loan	(68,281)	(4,200)
Proceeds on Inventory Loan Program, Net	0	8,121
Dividends Paid	(7,306)	(6,611)
Acquisition of Treasury Stock	(804)	(11,055)
Issuance of Stock Under Stock Option Plans	60	912
Shares Withheld for Tax Payments	(2,539)	(3,541)
Debt Issuance Costs	0	(2,758)
Cash (Used in) Provided by Financing Activities	(67,026)	262,568
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	2	(10)
Increase in Cash and Cash Equivalents	10,653	5,417
Cash and Cash Equivalents at Beginning of Period	27,716	22,832
Cash and Cash Equivalents at End of Period	38,369	28,249
BrandsMart
OPERATING ACTIVITIES:
Net Earnings (Losses)		16,190
INVESTING ACTIVITIES:
Acquisitions, Net of Cash Acquired	0	(266,772)
Other Businesses and Customer Agreements
INVESTING ACTIVITIES:
Acquisitions, Net of Cash Acquired	$ 0	$ (917)

v3.23.2

Basis and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Basis and Summary of Significant Accounting Policies	BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES For a discussion of trends that we believe have affected our business during the periods covered by these financial statements, see Part I, Item 2. "Management’s Discussion and Analysis of Financial Condition and Results of Operations", including the "Highlights," "Consolidated Results of Operations" and "Liquidity and Capital Resources", below, and Part I, Item 1A "Risk Factors" of our Annual Report on Form 10-K, filed with the United States Securities and Exchange Commission on March 1, 2023 (the "2022 Annual Report"). Description of Business The Aaron's Company, Inc. (the "Company") is a leading, technology-enabled, omni-channel provider of lease-to-own ("LTO") and retail purchase solutions of furniture, electronics, appliances, and other home goods across its brands: Aaron's, BrandsMart U.S.A., BrandsMart Leasing, and Woodhaven Furniture Industries ("Woodhaven"). Unless the context otherwise requires or we specifically indicate otherwise, references to "we," "us," "our," and the "Company," refer to The Aaron's Company, Inc., which holds, directly or indirectly, the Pre-Spin Aaron’s Business (as described in the 2022 Annual Report) and all other subsidiaries of the Company, which are wholly owned, as well as other lines of business described above. As of June 30, 2023, the Company's operating and reportable segments are the Aaron's Business and BrandsMart, each as described below. Effective as of April 1, 2022 and in connection with the acquisition of BrandsMart U.S.A., the Company changed its composition of reportable segments to align the reportable segments with the current organizational structure and the operating results that the chief operating decision maker regularly reviews to analyze performance and allocate resources, which includes separate segments for the Aaron's Business and BrandsMart, along with an Unallocated Corporate category for remaining unallocated costs. The Aaron's Business segment is comprised of (i) Aaron's branded Company-operated and franchise-operated stores; (ii) aarons.com e-commerce platform ("aarons.com"); (iii) Woodhaven; and (iv) BrandsMart Leasing (collectively, the "Aaron’s Business"). The operations of BrandsMart U.S.A. (excluding BrandsMart Leasing) comprise the BrandsMart segment (collectively, "BrandsMart"). BrandsMart U.S.A. Acquisition On April 1, 2022, the Company completed the previously announced transaction to acquire a 100% ownership of Interbond Corporation of America, doing business as BrandsMart U.S.A. The Company paid total consideration of approximately $230 million in cash under the terms of the agreement and additional amounts for working capital adjustments and transaction related fees. Refer to Note 2 to these condensed consolidated financial statements for additional information regarding the BrandsMart U.S.A. acquisition. Management believes that the BrandsMart U.S.A. acquisition will strengthen the Company's ability to deliver on its mission of enhancing people’s lives by providing easy access to high quality furniture, appliances, electronics, and other home goods through affordable lease-to-own and retail purchase options. Management also believes that value creation opportunities include leveraging the Company's lease-to-own expertise to provide BrandsMart U.S.A.'s customers enhanced payment options and offering a wider selection of products to millions of Aaron's customers, as well as generating procurement savings and other cost synergies. Aaron's Business Segment Since its founding in 1955, Aaron's has been committed to serving the overlooked and underserved customer with a dedication to inclusion and improving the communities in which it operates. Through a portfolio of approximately 1,260 stores and its aarons.com e-commerce platform, Aaron's, together with its franchisees, provide consumers with LTO and retail purchase solutions for the products they need and want, with a focus on providing its customers with unparalleled customer service, high approval rates, lease plan flexibility, and an attractive value proposition, including competitive monthly payments and total cost of ownership, as compared to other LTO providers. Woodhaven manufactures and supplies a significant portion of the upholstered furniture leased and sold in Company-operated and franchised Aaron's stores. Launched in 2022, BrandsMart Leasing offers LTO purchase solutions to customers of BrandsMart U.S.A. BrandsMart Segment Founded in 1977, BrandsMart U.S.A. is one of the leading appliance and consumer electronics retailers in the southeast United States and one of the largest appliance retailers in the country with ten stores in Florida and Georgia and a growing e-commerce presence on brandsmartusa.com. The operations of BrandsMart U.S.A. (other than BrandsMart Leasing) comprise the BrandsMart segment. The following table presents store count by ownership type: Stores as of June 30 (Unaudited) 2023 2022 Company-operated Aaron's Stores1 1,026  1,060  GenNext (included in Company-Operated) 230  171  Franchisee-operated Aaron's Stores 230  234  BrandsMart U.S.A. Stores2 10  10  Systemwide Stores 1,266  1,304  Company-operated Aaron's Store Types as of June 30, 2023 (Unaudited) GenNext Legacy Total Store 175  649  824  Hub 48  53  101  Showroom 7  94  101  Total 230  796  1,026  1 The typical layout for a Company-operated Aaron's store is a combination of showroom, customer service and warehouse space, averaging approximately 9,500 square feet. Certain Company-operated Aaron's stores consist solely of a showroom. 2 BrandsMart U.S.A. stores average approximately 100,000 square feet and have been included in this table subsequent to the acquisition date of April 1, 2022. Basis of Presentation The financial statements as of and for the three and six months ended June 30, 2023 and comparable prior year periods are condensed consolidated financial statements of the Company and its subsidiaries, each of which is wholly-owned, and is based on the financial position and results of operations of the Company. Intercompany balances and transactions between consolidated entities have been eliminated. These condensed consolidated financial statements reflect the historical results of operations, financial position and cash flows of the Company in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). The preparation of the Company's condensed consolidated financial statements in conformity with 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. The extent to which inflationary and other economic pressures will impact the Company's business will depend on future developments. These developments are uncertain and cannot be precisely predicted at this time. In many cases, management's estimates and assumptions are dependent on estimates of such future developments and may change in the future. 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 2022 Annual Report. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of operating results that may be achieved for any other interim period or for the full year. Accounting Policies and Estimates See Note 1 to the consolidated and combined financial statements in the 2022 Annual Report for an expanded discussion of accounting policies and estimates. Earnings (Losses) 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"), performance share units ("PSUs") and other awards issuable under the Company's 2020 Equity and Incentive Plan or employee stock purchase plan ("ESPP"), (collectively, "share-based awards"), as determined under the treasury stock method, unless the inclusion of such awards would have been anti-dilutive. The following table shows the calculation of weighted-average shares outstanding assuming dilution: Three Months Ended June 30, Six Months Ended June 30, (Shares In Thousands) 2023 2022 2023 2022 Weighted Average Shares Outstanding 30,993  30,827  30,894  30,944  Dilutive Effect of Share-Based Awards1 314  —  380  546  Weighted Average Shares Outstanding Assuming Dilution 31,307  30,827  31,274  31,490  1 There was no dilutive effect of share-based awards for the three months ended June 30, 2022 due to the net loss incurred in the period. Approximately 1.2 million weighted-average share based awards were excluded from the computation of earnings per share assuming dilution during the three and six months ended June 30, 2023, and 0.7 million during the six months ended June 30, 2022, respectively, as the awards would have been anti-dilutive for the periods presented. Revenue Recognition The Company provides lease and retail merchandise, consisting of appliances, electronics, furniture, and other home goods to its customers for lease under certain terms agreed to by the customer and through retail sales. The Company's Aaron's stores, aarons.com e-commerce platform, and BrandsMart Leasing components of the Aaron's Business segment offer leases with flexible ownership plans that can be generally renewed weekly, bi-weekly, semi-monthly, or monthly up to 12, 18 or 24 months. The Aaron's Business segment also earns revenue from the sale of merchandise to customers and Aaron's franchisees, and earns ongoing revenue from Aaron's franchisees in the form of royalties and through advertising efforts that benefit the franchisees. The Company's BrandsMart U.S.A. stores and related brandsmartusa.com e-commerce platform offer the sale of merchandise directly to its customers via retail sales. See Note 5 to these condensed consolidated financial statements for further information regarding the Company's revenue recognition policies and disclosures. Advertising The Company expenses advertising costs as incurred. Advertising production costs are initially recognized as a prepaid advertising asset and are expensed when an advertisement appears for the first time. Total advertising costs were $6.6 million and $19.6 million during the three and six months ended June 30, 2023, respectively, (three and six months ended June 30, 2022: $12.6 million and $23.3 million, respectively) and are classified within other operating expenses, net in the condensed consolidated statements of earnings. These advertising costs are presented net of cooperative advertising considerations received from vendors, which represents reimbursement of specific, identifiable and incremental costs incurred in selling those vendors’ products. The amount of cooperative advertising consideration recorded as a reduction of such advertising costs was $8.6 million and $16.1 million during the three and six months ended June 30, 2023, respectively, (three and six months ended June 30, 2022: $9.4 million and $16.4 million, respectively). The prepaid advertising asset was $4.2 million and $4.6 million at June 30, 2023 and December 31, 2022, respectively, and is reported within prepaid expenses and other assets on the condensed consolidated balance sheets. Accounts Receivable Accounts receivable consist of receivables due from customers on lease agreements, corporate receivables incurred during the normal course of business (primarily for vendor consideration and third-party warranty providers), and franchisee obligations. Accounts receivable, net of allowances, consist of the following:  (In Thousands) June 30, 2023 December 31, 2022 Customers $ 7,385  $ 9,721  Corporate 17,051  20,597  Franchisee 5,762  7,873  $ 30,198  $ 38,191  The Company maintains an accounts receivable allowance for the Aaron's Business customer lease agreements, under which its policy is to record a provision for returns and uncollectible contractually due renewal payments based on historical payments experience, which is recognized as a reduction of lease revenues and fees within the condensed consolidated statements of earnings. Other qualitative factors are considered in estimating the allowance, such as current and forecasted business trends. The Company writes off customer lease receivables, excluding customer lease receivables for its BrandsMart Leasing operations, that are 60 days or more past due on pre-determined dates twice monthly. The Company writes off customer lease receivables for its BrandsMart Leasing operations that are 90 days or more past due on pre-determined dates twice monthly. The Company also maintains an allowance for outstanding franchisee accounts receivable. The Company's policy is to estimate future losses related to certain franchisees that are deemed to have a higher risk of non-payment and record an allowance for these estimated losses. The estimated allowance on franchisee accounts receivable includes consideration of the financial position of each franchisee and qualitative consideration of potential losses associated with uncertainties impacting the franchisee's ability to satisfy their obligations. Uncertainties include inflationary and other economic pressures in the current macroeconomic environment. Accordingly, actual accounts receivable write-offs could differ from the allowance. The provision for uncollectible franchisee accounts receivable is recorded as bad debt expense in other operating expenses, net within the condensed consolidated statements of earnings. The allowance related to corporate receivables is not significant as of June 30, 2023 and December 31, 2022. The following table shows the components of the accounts receivable allowance: Six Months Ended June 30, (In Thousands) 2023 2022 Beginning Balance $ 8,895  $ 7,163  Accounts Written Off, net of Recoveries (22,108) (16,761) Accounts Receivable Provision 21,111  17,484  Ending Balance $ 7,898  $ 7,886  The following table shows the components of the accounts receivable provision, which includes amounts recognized for bad debt expense and the provision for returns and uncollected payments: Six Months Ended June 30, (In Thousands) 2023 2022 Bad Debt Expense (Reversal) $ 25  $ (203) Provision for Returns and Uncollectible Renewal Payments 21,086  17,687  Accounts Receivable Provision $ 21,111  $ 17,484  Lease Merchandise The Company’s lease merchandise is recorded at the lower of depreciated cost, including overhead costs from our distribution centers, 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 begins depreciating lease merchandise at the earlier of 12 months and one day from its purchase of the merchandise or when the merchandise is leased to customers. Lease merchandise fully depreciates 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) June 30, 2023 December 31, 2022 Merchandise on Lease, net of Accumulated Depreciation and Allowances $ 408,314  $ 446,923  Merchandise Not on Lease, net of Accumulated Depreciation and Allowances1 228,282  246,872  Lease Merchandise, net of Accumulated Depreciation and Allowances $ 636,596  $ 693,795  1 Includes Woodhaven raw materials, finished goods and work-in-process inventory that has been classified within lease merchandise in the condensed consolidated balance sheets of $11.0 million and $12.9 million as of June 30, 2023 and December 31, 2022, respectively. The Aaron's store-based operations' policies require weekly merchandise counts at its store-based operations, which include write-offs for unsalable, damaged, or missing merchandise inventories. Monthly cycle counting procedures are performed at both the Aaron's distribution centers and Woodhaven manufacturing facilities. Physical inventories are also taken at the manufacturing facilities annually. The Company also monitors merchandise levels and mix by division, store, and distribution center, as well as the average age of merchandise on hand. If obsolete merchandise cannot be returned to vendors, its carrying amount is adjusted to its net realizable value or written off. Generally, all merchandise not on lease is available for lease or sale. On a monthly basis, all damaged, lost or unsalable merchandise identified is written off and is included as a component of the provision for lease merchandise write-offs in the accompanying condensed consolidated statements of earnings. The Company records a provision for write-offs using the allowance method, which is included within lease merchandise, net within the condensed consolidated balance sheets. The allowance method for lease merchandise write-offs estimates the merchandise losses incurred but not yet identified by management as of the end of the accounting period based primarily on historical write-off experience. Other qualitative factors are considered in estimating the allowance, such as seasonality and the impacts of uncertainty surrounding inflationary and other economic pressures in the current macroeconomic environment and the normalization of business trends associated with the effects of the COVID-19 pandemic on our customers. Therefore, actual lease merchandise write-offs could differ from the allowance. The provision for write-offs is included in provision for lease merchandise write-offs in the accompanying condensed consolidated statements of earnings. The Company writes off lease merchandise on lease agreements, excluding lease agreements for its BrandsMart Leasing operations, that are 60 days or more past due on pre-determined dates twice monthly. The Company writes off lease merchandise on lease agreements for its BrandsMart Leasing operations that are 90 days or more past due on pre-determined dates twice monthly. The following table shows the components of the allowance for lease merchandise write-offs: Six Months Ended June 30, (In Thousands) 2023 2022 Beginning Balance $ 13,894  $ 12,339  Merchandise Written off, net of Recoveries (39,181) (43,140) Provision for Write-offs 39,161  44,070  Ending Balance $ 13,874  $ 13,269  Merchandise Inventories The Company’s merchandise inventories are stated at the lower of weighted average cost or net realizable value and consist entirely of merchandise held for sale by the BrandsMart segment. In-bound freight-related costs from vendors, net of allowances and vendor rebates, are included as part of the net cost of merchandise inventories. Costs associated with storing and transporting merchandise inventories to our retail stores are expensed as incurred and included within retail cost of sales in the condensed consolidated statements of earnings. The Company periodically evaluates aged and distressed inventory and establishes an inventory markdown which represents the excess of the carrying value over the amount the Company expects to realize from the ultimate sale of the inventory. Markdowns establish a new cost basis for the inventory and are recorded within retail cost of sales within the condensed consolidated statement of earnings. The write-offs of merchandise inventories associated with the Company's cycle and physical inventory count processes are also included within retail cost of sales in the condensed consolidated statement of earnings. The Company records an inventory reserve for the anticipated loss associated with selling inventories below cost. This reserve is based on management’s current knowledge with respect to inventory levels, sales trends, and historical experience selling or disposing of aged or obsolete inventory. The following is a summary of merchandise inventories, net of allowances: (In Thousands) June 30, 2023 December 31, 2022 Merchandise Inventories, gross $ 93,773  $ 96,945  Reserve for Merchandise Inventories (921) (981) Merchandise Inventories, net $ 92,852  $ 95,964  The following table shows the components of the reserve for merchandise inventories: Six Months Ended (In Thousands) June 30, 2023 Beginning Balance $ 981  Merchandise Written off —  Provision for Write-offs (60) Ending Balance1 $ 921  1 There were no significant markdown provisions recorded during the three and six months ended June 30, 2022. Prepaid Expenses and Other Assets Prepaid expenses and other assets consist of the following: (In Thousands) June 30, 2023 December 31, 2022 Prepaid Expenses $ 19,159  $ 20,218  Insurance Related Assets 31,505  25,103  Company-Owned Life Insurance 14,633  13,443  Assets Held for Sale 1,113  1,857  Deferred Tax Assets 23,686  16,277  Other Assets1 20,741  19,538  $ 110,837  $ 96,436  1 Amounts as of June 30, 2023 and December 31, 2022 included restricted cash of $1.6 million held as collateral for BrandsMart U.S.A.'s workers' compensation and general liability insurance policies. Sale-Leaseback Transactions During the six months ended June 30, 2022, the Company entered into two sale and leaseback transactions related to five Company-owned Aaron's store properties for a total sales price of $9.0 million, $5.7 million of which was received during the six months ended June 30, 2022. Such proceeds are presented within proceeds from dispositions of property, plant and equipment in the condensed consolidated statements of cash flows. The Company recognized gains of $1.9 million and $5.7 million associated with these transactions during the three and six months ended June 30, 2022, respectively, which was classified within other operating expenses, net in the condensed consolidated statements of earnings. As of June 30, 2022 proceeds of $3.3 million related to such transactions remained outstanding and were received during the third quarter of 2022. Derivative Instruments In March 2023, the Company entered into a non-speculative interest rate swap agreement for an aggregate notional amount of $100.0 million with an effective date of April 28, 2023 and a termination date of March 31, 2027. The purpose of this hedge is to limit the Company's exposure of its variable interest rate debt by effectively converting it to fixed interest rate debt. Under the terms of the agreement, the Company will receive a floating interest rate based on 1-month Chicago Mercantile Exchange ("CME") Term Secured Overnight Financing Rate ("SOFR") and pay a fixed interest rate of 3.87% on the notional amount. The Company has accounted for the interest rate swap as a cash flow hedge instrument in accordance with ASC 815, Derivatives and Hedging ("ASC 815"). Accordingly, the effective portion of the gains and losses associated with the changes in the fair value of the cash flow hedge instrument are recognized as a component of accumulated other comprehensive loss in the Company's condensed consolidated balance sheets. Such amounts are reclassified into earnings in the same period during which the cash flow hedging instrument affects earnings. As of June 30, 2023, the facts and circumstances of the hedged relationship remain consistent with the initial effectiveness assessment and the hedging instrument remains an effective accounting hedge. The fair value of the hedge as of June 30, 2023 was an asset of $1.0 million, and has been recorded within prepaid expenses and other assets in the Company's condensed consolidated balance sheets. During the three and six months ended June 30, 2023, the Company reclassified $0.2 million of net losses from accumulated other comprehensive loss to interest expense. See Note 3 to these condensed consolidated financial statements for further information regarding the fair value determination of the Company's interest rate swap agreement. Derivative instruments in place during the prior year were not significant. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following: (In Thousands) June 30, 2023 December 31, 2022 Accounts Payable $ 108,314  $ 106,966  Estimated Claims Liability Costs 60,790  58,549  Accrued Salaries and Benefits 34,779  33,932  Accrued Real Estate and Sales Taxes 23,390  24,030  Other Accrued Expenses and Liabilities 33,578  40,566  $ 260,851  $ 264,043  Estimated Claims Liability Costs Estimated claims liability costs are accrued primarily for workers compensation and vehicle liability, as well as general liability and group health insurance benefits provided to team members. These liabilities are recorded within estimated claims liability costs within accounts payable and accrued expenses in the condensed consolidated balance sheets. Estimates for these claims liabilities are made based on actual reported but unpaid claims and actuarial analysis of the projected claims run off for both reported and incurred but not reported claims. This analysis is based upon an assessment of the likely outcome or historical experience and considers a variety of factors, including the actuarial loss forecasts, company-specific development factors, general industry loss development factors and third-party claim administrator loss estimates of individual claims. The Company makes periodic prepayments to its insurance carriers to cover the projected claims run off for both reported and incurred but not reported claims, considering its retention or stop loss limits. In addition, we have prefunding balances on deposit and other insurance receivables with the insurance carriers which are recorded within prepaid expenses and other assets in our condensed consolidated balance sheets. Goodwill Goodwill represents the excess of the purchase price paid over the fair value of the identifiable net tangible and intangible assets acquired in connection with business acquisitions. All acquisition-related goodwill balances are allocated amongst the Company's reporting units based on the nature of the acquired operations that originally created the goodwill. During the fourth quarter of 2022, in connection with its annual impairment testing, management evaluated the various components of the operating segments further described above and in Note 8 to these condensed consolidated financial statements and identified three reporting units, Aaron's Business, BrandsMart, and BrandsMart Leasing, each as described below. The Aaron's Business reporting unit is comprised of (i) Aaron's branded Company-operated and franchise operated stores; (ii) aarons.com e-commerce platform ("aarons.com"); and (iii) Woodhaven (collectively, the "Aaron’s Business reporting unit"). The Aaron's Business reporting unit is a component of the Aaron's Business operating segment. The operations of BrandsMart Leasing comprise the BrandsMart Leasing reporting unit (collectively, the "BrandsMart Leasing reporting unit"), and is a component of the Aaron's Business operating segment. Management considered the aggregation of the BrandsMart Leasing reporting unit and Aaron's Business reporting unit as a single reporting unit and determined that these components were economically dissimilar and also reviewed separately by the segment managers of the Aaron's Business operating segment, and therefore should not be aggregated. The operations of BrandsMart, comprise the BrandsMart reporting unit (collectively, the "BrandsMart reporting unit") and is also the sole component of the BrandsMart operating segment. The acquisition of BrandsMart U.S.A. in the second quarter of 2022 resulted in the recognition of approximately $55.8 million of goodwill, inclusive of measurement period adjustments further described in Note 2 to these condensed consolidated financial statements. Of this amount, $29.2 million was assigned to the BrandsMart reporting unit and $26.5 million was assigned to the BrandsMart Leasing reporting unit. The following table provides information related to the carrying amount of goodwill by operating segment. (In Thousands) Aaron's Business BrandsMart BrandsMart Leasing Total Balance at December 31, 2022 $ —  $ 28,193  $ 26,517  $ 54,710  Acquisitions —  —  —  —  Acquisition Accounting Adjustments —  1,040  —  1,040  Impairment Loss —  —  —  —  Balance at June 30, 2023 $ —  $ 29,233  $ 26,517  $ 55,750  The Company’s goodwill is not amortized but is subject to an impairment test at the reporting unit level annually as of October 1 and more frequently if events or circumstances indicate that an interim impairment may have occurred. An interim goodwill impairment test is required if the Company believes it is more likely than not that the carrying amount of its reporting unit exceeds the reporting unit's fair value. The Company determined that there were no events that occurred or circumstances that changed during the six months ended June 30, 2023 that would more likely than not reduce the fair value of its reporting units below their carrying amount. The Company may be required to recognize material impairments to the BrandsMart or BrandsMart Leasing goodwill balances in the future if: (i) the Company fails to successfully execute on one or more elements of the BrandsMart strategic plan; (ii) actual results are unfavorable to the Company's estimates and assumptions used to calculate fair value; (iii) the BrandsMart or BrandsMart Leasing carrying values increase without an associated increase in the fair value; and/or (iv) BrandsMart or BrandsMart Leasing is materially impacted by further deterioration of macroeconomic conditions, including inflation and other economic pressures, including rising interest rates. Acquisition-Related Costs Acquisition-related costs of $0.5 million and $2.4 million were incurred during the three and six months ended June 30, 2023, and Acquisition-related costs of $8.0 million and $11.5 million were incurred during the three and six months ended 2022. These primarily represent internal control readiness third-party consulting, banking and legal expenses and retention bonuses associated with the acquisition of BrandsMart U.S.A. completed April 1, 2022. Related Party Transactions with the Sellers of BrandsMart U.S.A. Effective as of the BrandsMart U.S.A. acquisition date, the Company entered into lease agreements for six store locations retained by the sellers of BrandsMart U.S.A., including Michael Perlman, who was employed by the Company for a short period following the acquisition. While Mr. Perlman is no longer employed by the Company as of December 31, 2022, the Company intends to continue its treatment of the lease agreements as potential related party transactions under the Company’s Related Party Transactions Policy until December 2023. The agreements include initial terms of ten years, with options to renew each location for up to 20 years thereafter. The Company recorded these leases within operating lease right-of-use assets and operating lease liabilities in the Company's condensed consolidated balance sheets. The six operating leases have aggregate annual rental payments of approximately $10.0 million and are considered to be above market. The value of the off-market element of the lease agreements was included as a component of the consideration transferred to the sellers of BrandsMart U.S.A. and was recognized as a reduction to the operating lease right-of-use-asset. The total amounts paid to the sellers of BrandsMart U.S.A. during the three and six months ended June 30, 2023 related to real estate activities, including rental payments, maintenance and taxes, were approximately $3.2 million and $6.5 million, respectively. Stockholders' Equity Changes in stockholders' equity for the three and six months ended June 30, 2023 and 2022 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 Shares Amount Balance, December 31, 2022 (5,480) $ (138,753) 36,100  $ 18,050  $ 738,428  $ 79,073  $ (1,396) $ 695,402  Cash Dividends, $0.125 per share —  —  —  —  —  (3,966) —  (3,966) Stock-Based Compensation —  —  —  —  2,874  —  —  2,874  Issuance of Shares under Equity Plans (207) (2,539) 496  248  (248) —  —  (2,539) Net Earnings —  —  —  —  —  12,798  —  12,798  Unrealized (Loss) on Derivative Instruments, net of tax —  —  —  —  —  —  (990) (990) Foreign Currency Translation Adjustment, net of tax —  —  —  —  —  —  324  324  Balance, March 31, 2023 (5,687) $ (141,292) 36,596  $ 18,298  $ 741,054  $ 87,905  $ (2,062) $ 703,903  Cash Dividends, $0.125 per share —  —  —  —  —  (3,874) —  (3,874) Stock-Based Compensation —  —  —  —  2,913  —  —  2,913  Issuance of Shares under Equity Plans —  —  24  12  48  —  —  60  Acquisition of Treasury Stock (66) (804) —  —  —  —  —  (804) Net Earnings —  —  —  —  —  6,517  —  6,517  Unrealized Gain on Derivative Instruments, net of tax —  —  —  —  —  —  1,685  1,685  Foreign Currency Translation Adjustment, net of tax —  —  —  —  —  —  180  180  Balance, June 30, 2023 (5,753) $ (142,096) 36,620  $ 18,310  $ 744,015  $ 90,548  $ (197) $ 710,580    Treasury Stock Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Total Shareholders’ Equity (In Thousands, Except Per Share) Shares Amount Shares Amount Balance, December 31, 2021 (4,580) $ (121,804) 35,559  $ 17,779  $ 724,384  $ 98,546  $ (739) $ 718,166  Cash Dividends, $0.11 per share —  —  —  —  —  (3,584) —  (3,584) Stock-Based Compensation —  —  —  —  3,611  —  —  3,611  Issuance of Shares Under Equity Plans (163) (3,541) 410  205  (153) —  —  (3,489) Acquisition of Treasury Stock (262) (5,720) —  —  —  —  —  (5,720) Net Earnings —  —  —  —  —  21,532  —  21,532  Unrealized Gain on Fuel Hedge Derivative Instrument —  —  —  —  —  —  154  154  Foreign Currency Translation Adjustment —  —  —  —  —  —  238  238  Balance, March 31, 2022 (5,005) $ (131,065) 35,969  $ 17,984  $ 727,842  $ 116,494  $ (347) $ 730,908  Cash Dividends, $0.11 per share —  —  —  —  —  (3,541) —  (3,541) Stock-Based Compensation —  —  —  —  3,224  —  —  3,224  Issuance of Shares Under Equity Plans —  —  68  35  825  —  —  860  Acquisition of Treasury Stock (255) (5,335) —  —  —  —  —  (5,335) Net Loss —  —  —  —  —  (5,342) (5,342) Unrealized Gain on Fuel Hedge Derivative Instrument —  —  —  —  —  —  85  85  Foreign Currency Translation Adjustment —  —  —  —  —  —  (346) (346) Balance, June 30, 2022 (5,260) $ (136,400) 36,037  $ 18,019  $ 731,891  $ 107,611  $ (608) $ 720,513  Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: Level 1—Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3—Valuations based on unobservable inputs reflecting the Company's own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. The fair values of the Company's assets and liabilities as of June 30, 2023 and December 31, 2022 are further described in Note 3 to these condensed consolidated financial statements. Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) ("AOCI") by component for the six months ended June 30, 2023 and June 30, 2022 are summarized below: Six Months Ended June 30, 2023 (In Thousands) Derivative Instruments Foreign Currency Total Balance at December 31, 2022 $ (17) $ (1,379) $ (1,396) Other Comprehensive Income, net of Tax 695  504  1,199  Balance at June 30, 2023 $ 678  $ (875) $ (197) Six Months Ended June 30, 2022 (In Thousands) Derivative Instruments Foreign Currency Total Balance at December 31, 2021 $ —  $ (739) $ (739) Other Comprehensive Income (Loss), net of Tax 239  (108) 131  Balance at June 30, 2022 $ 239  $ (847) $ (608) Recent Accounting Pronouncements There were no new accounting standards that had a material impact on the Company’s condensed consolidated financial statements during the six months ended June 30, 2023, and there were no other new accounting standards or pronouncements that were issued but not yet effective as of June 30, 2023 that the Company expects to have a material impact on its condensed consolidated financial statements.

v3.23.2

Acquisitions	6 Months Ended
	Jun. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Acquisitions	ACQUISITIONS BrandsMart U.S.A. Acquisition On April 1, 2022, the Company completed the previously announced acquisition of all of the issued and outstanding shares of capital stock of BrandsMart U.S.A. Founded in 1977, BrandsMart U.S.A. is one of the leading appliance and consumer electronics retailers in the southeastern United States and one of the largest appliance retailers in the country, with ten stores in Florida and Georgia and a growing e-commerce presence on brandsmartusa.com. The Company paid total consideration of approximately $230 million in cash under the terms of the agreement and additional amounts for working capital adjustments and transaction related fees. Consideration transferred also included the off-market value associated with certain operating leases entered into in conjunction with the transaction, which is further described in the table below. Management believes that the BrandsMart U.S.A. acquisition will strengthen the Company's ability to deliver on its mission of enhancing people’s lives by providing easy access to high quality furniture, appliances, electronics, and other home goods through affordable lease-to-own and retail purchase options. Management also believes that value creation opportunities include leveraging the Company's lease-to-own expertise to provide BrandsMart U.S.A.'s customers enhanced payment options and offering a wider selection of products to millions of Aaron's customers, as well as generating procurement savings and other cost synergies. The BrandsMart U.S.A. acquisition has been accounted for as a business combination, and the BrandsMart results of operations are included in the Company's results of operations from the April 1, 2022 acquisition date. BrandsMart contributed revenues of $143.8 million and $287.9 million during the three and six months ended June 30, 2023, and $181.4 million during the three and six months ended June 30, 2022, respectively. BrandsMart also contributed net earnings of $1.1 million and $0.2 million during the three and six months ended June 30, 2023, and net losses of $15.9 million during the three and six months ended June 30, 2022, respectively. Acquisition Accounting The consideration transferred and the estimated fair values of the assets acquired and liabilities assumed in the BrandsMart U.S.A. acquisition as of the April 1, 2022 acquisition date are as follows: (In Thousands) Preliminary Amounts Recognized as of Acquisition Date1 2023 Measurement Period Adjustments2 Final Amounts Recognized as of Acquisition Date Cash Consideration to BrandsMart U.S.A. $ 230,000  $ —  $ 230,000  Acquired Cash 15,952  —  15,952  Estimated Excess Working Capital, net of Cash 35,599  —  35,599  Non-Cash Off-Market Lease Agreement3 6,823  —  6,823  Aggregate Consideration Transferred 288,374  —  288,374  Total Purchase Consideration, Net of Cash Acquired 272,422  —  272,422  Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed Accounts Receivable 4,310  —  4,310  Merchandise Inventories 124,064  173  124,237  Property, Plant and Equipment 22,053  (1,361) 20,692  Operating Lease Right-of-Use Assets 160,210  —  160,210  Other Intangibles4 122,950  —  122,950  Prepaid Expenses and Other Assets5 9,049  (80) 8,969  Total Identifiable Assets Acquired 442,636  (1,268) 441,368  Accounts Payable and Accrued Expenses 25,340  (2,050) 23,290  Customer Deposits and Advance Payments 25,332  1,822  27,154  Operating Lease Liabilities 158,712  —  158,712  Debt 15,540  —  15,540  Total Liabilities Assumed 224,924  (228) 224,696  Net Assets Acquired 217,712  (1,040) 216,672  Goodwill6 54,710  1,040  55,750  Total Estimated Fair Value of Net Assets Acquired $ 272,422  $ —  $ 272,422  1 As previously reported in the notes to the consolidated and combined financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022. 2 The measurement period adjustments recorded in 2023 primarily relate to opening balance sheet adjustments to certain asset and liability balances further illustrated in the table above. 3 Effective as of the acquisition date, the Company entered into lease agreements for six store locations retained by the sellers of BrandsMart U.S.A. The agreement includes initial terms of ten years, with options to renew each location for up to 20 years thereafter. The annual rent is considered to be above market. The value of the off-market element of the lease agreements has been included in consideration transferred and as a reduction to the operating lease right-of-use-asset. 4 Identifiable intangible assets are further disaggregated in the table set forth below. 5 Includes restricted cash of $2.5 million at the acquisition date that was held as collateral for BrandsMart U.S.A.'s workers' compensation and general liability insurance policies. 6 The purchase price exceeded the fair value of the net assets acquired, which resulted in the recognition of goodwill, all of which is expected to be deductible for tax purposes. Goodwill is comprised of synergies created from the expected future benefits to the Company, including those related to the expansion of BrandsMart stores into new markets, expanded product assortment, procurement synergies, the projected growth of the BrandsMart Leasing business, and certain other intangible assets that do not qualify for separate recognition, such as an assembled workforce. See Note 1 to these condensed consolidated financial statements for further discussion of the identification of the Company's reporting units and the allocation of goodwill and Note 8 for the discussion of operating segments associated with the BrandsMart U.S.A. acquisition. Intangible assets attributable to the BrandsMart U.S.A. acquisition are comprised of the following: Fair Value (In Thousands) Weighted Average Life (In Years) Trade Names $ 108,000  20.0 Non-Compete Agreements 250  3.0 Customer List 14,700  4.0 Total Acquired Intangible Assets $ 122,950  The Company incurred $0.5 million and $2.4 million, and $8.0 million and $11.5 million of transaction costs during the three and six months ended June 30, 2023, and June 30, 2022, respectively, in connection with the acquisition of BrandsMart U.S.A. These costs were included within "Acquisition-Related Costs" in the condensed consolidated statements of earnings. Acquisition-Related Costs that will affect the Company's income statement throughout the remainder of 2023 are not expected to be material. Pro Forma Financial Information The following table presents unaudited consolidated pro forma information as if the acquisition of BrandsMart U.S.A. had occurred on January 1, 2021, compared to actual, historical results. (Unaudited) Three Months Ended June 30, 2022 (In Thousands) As Reported Pro Forma Combined Results Revenues $ 610,384  $ 610,384  (Losses) Earnings Before Income Taxes (13,474) 17,609  Net (Losses) Earnings $ (5,342) $ 17,908  (Unaudited) Six Months Ended June 30, 2022 (In Thousands) As Reported Pro Forma Combined Results Revenues $ 1,066,466  $ 1,239,237  Earnings Before Income Taxes 15,431  53,053  Net Earnings $ 16,190  $ 44,068  The unaudited pro forma combined financial information does not reflect the costs of any integration activities or dis-synergies, or benefits that may result from future costs savings due to revenue synergies, procurement savings or operational efficiencies expected to result from the BrandsMart U.S.A. acquisition. Accordingly, the unaudited pro forma financial information above is not intended to represent or be indicative of the consolidated results of operations of the Company that would have been reported had the BrandsMart U.S.A. acquisition been completed as of the dates presented, and should not be construed as representative of the future consolidated results of operations or financial condition of the combined entity. The unaudited pro forma combined financial information for the three and six months ended June 30, 2022 includes adjustments to, among other things, record depreciation expense, amortization expense and income taxes based upon the fair value allocation of the purchase price to BrandsMart U.S.A.'s tangible and intangible assets acquired and liabilities assumed as though the acquisition had occurred on January 1, 2021. Interest expense on the additional debt incurred by the Company to fund the acquisition and personnel costs incurred related to the acquisition are also included in the unaudited pro forma combined information as if the BrandsMart U.S.A. acquisition had occurred on January 1, 2021 for the pro forma three and six months ended June 30, 2022.

v3.23.2

Fair Value Measurement	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurement	FAIR VALUE MEASUREMENT Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis The fair value of the Company's current financial assets and liabilities, such as cash and cash equivalents, accounts receivable and accounts payable, approximate their carrying values due to their short-term nature. The Company's outstanding debt borrowings as of June 30, 2023 and December 31, 2022 were subject to a variable interest rate. Therefore, the fair value of these borrowings also approximates its carrying value. Debt borrowings are measured within Level 2 of the fair value hierarchy. The Company also measures certain non-financial assets at fair value on a nonrecurring basis, such as goodwill, intangible assets, operating lease right-of-use assets, property, plant, and equipment and assets held for sale, in connection with periodic evaluations for potential impairment. The following table summarizes financial liabilities measured at fair value on a recurring basis: (In Thousands) June 30, 2023 December 31, 2022   Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Deferred Compensation Liability $ —  $ (10,015) $ —  $ —  $ (8,621) $ —  Interest Rate Swap Asset (Liability) $ —  $ 980  $ —  $ —  $ —  $ —  The Company maintains The Aaron's Company, Inc. Deferred Compensation Plan, which is an unfunded, nonqualified deferred compensation plan for a select group of management, highly compensated employees and non-employee directors. The liability represents benefits accrued for plan participants and is valued at the quoted market prices of the participants’ investment elections, which consist of equity and debt "mirror" funds. As such, the Company has classified the deferred compensation liability as a Level 2 liability, which is recorded in accounts payable and accrued expenses in the condensed consolidated balance sheets. In March 2023, the Company entered into an interest rate swap agreement for an aggregate notional amount of $100.0 million which is further described in Note 1 to these condensed consolidated financial statements. The fair value of the interest rate swap agreement is derived by using widely accepted valuation techniques and reflects the contractual terms of the interest rate swap including the period to maturity and uses observable market-based inputs, including interest rate curves. The fair value associated with the interest rate swap is recorded within prepaid expenses and other assets (when the resulting fair value is an asset) or accounts payable and accrued expenses (when the resulting fair value is a liability) within the Company's condensed consolidated balance sheets. Non-Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The following table summarizes non-financial assets measured at fair value on a nonrecurring basis: (In Thousands) June 30, 2023 December 31, 2022 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Held for Sale $ —  $ 1,113  $ —  $ —  $ 1,857  $ —  Assets classified as held for sale are recorded at the lower of carrying value or fair value less estimated costs to sell, and any adjustment is recorded in other operating expenses, net or restructuring expenses, net (if the asset is a part of the Company's restructuring programs as described in Note 7 to these condensed consolidated financial statements) in the condensed consolidated statements of earnings. The highest and best use of the primary components of assets held for sale are as real estate land parcels for development or real estate properties for use or lease; however, the Company has chosen not to develop or use these properties, and plans to sell the properties to third parties as quickly as practicable. On April 1, 2022, the Company completed the previously announced acquisition of all of the issued and outstanding shares of capital stock of BrandsMart U.S.A. For the fair value measurements performed related to the net assets acquired, including acquired intangible assets, the Company utilized multiple Level 3 inputs and assumptions, such as estimates about costs of capital, future projected performance and cash flows. See Note 2 to these condensed consolidated financial statements for further details regarding the acquired assets.

v3.23.2

Indebtedness	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Indebtedness	INDEBTEDNESS The following is a summary of the Company's debt, net of unamortized debt issuance costs as applicable: (In Thousands) June 30, 2023 December 31, 2022 Revolving Facility $ 15,000  $ 69,250  Term Loan, Due in Installments through April 20271 171,063  173,163  Total Debt 186,063  242,413  Less: Current Maturities 4,375  23,450  Long-Term Debt $ 181,688  $ 218,963  1 Includes unamortized debt issuance costs of $0.7 million and $0.7 million as of June 30, 2023 and December 31, 2022. The Company has included $2.5 million and $2.9 million of debt issuance costs as of June 30, 2023 and December 31, 2022, respectively, related to the new and previous revolving credit facility, within prepaid expenses and other assets in the condensed consolidated balance sheets. Revolving Credit Facility and Term Loan To finance the BrandsMart U.S.A. acquisition, on April 1, 2022 the Company entered into a new unsecured credit facility (the "Credit Facility") which replaced its previous $250 million unsecured credit facility dated as of November 9, 2020 (as amended, the "Previous Credit Facility"). The Previous Credit Facility is further described in Note 8 to the consolidated and combined financial statements of the 2022 Annual Report. The Credit Facility provides for a $175 million term loan (the "Term Loan") and a $375 million revolving credit facility (the "Revolving Facility"), which includes (i) a $35 million sublimit for the issuance of letters of credit on customary terms, and (ii) a $35 million sublimit for swing line loans on customary terms. The Company pays a commitment fee on unused balances related to the revolving facility, which ranges from 0.20% to 0.30% as determined by the Company's ratio of total net debt to EBITDA (as defined by the agreement). On April 1, 2022, the Company borrowed $175 million under the Term Loan and $117 million under the Revolving Facility to finance the purchase price for the BrandsMart U.S.A. acquisition and other customary acquisition and financing-related closing costs and adjustments. The Company expects that future additional borrowings under the Revolving Facility will be used to provide for working capital and capital expenditures, to finance future permitted acquisitions and for other general corporate purposes. As of June 30, 2023, $171.7 million and $15.0 million remained outstanding under the Term Loan and Revolving Facility, respectively, compared to $173.9 million and $69.3 million outstanding at December 31, 2022. Amounts outstanding under the letters of credit, which reduce availability under the Revolving Facility, were $19.0 million and $17.3 million as of June 30, 2023 and December 31, 2022, respectively. Borrowings under the Revolving Facility and the Term Loan bear interest at a rate per annum equal to, at the option of the Company, (i) the forward-looking term rate based on SOFR plus an applicable margin ranging between 1.50% and 2.25%, based on the Company's Total Net Debt to EBITDA Ratio, or (ii) the base rate (as defined in the Credit Facility) plus an applicable margin, which is 1.00% lower than the applicable margin for SOFR loans. The loans and commitments under the Revolving Facility mature or terminate on April 1, 2027. The Term Loan amortizes in quarterly installments, commencing on December 31, 2022, in an aggregate annual amount equal to (i) 2.50% of the original principal amount of the Term Loan during the first and second years after the closing date, (ii) 5.00% of the original principal amount of the Term Loan during the third, fourth and fifth years after the closing date, with the remaining principal balance of the Term Loan to be due and payable in full on April 1, 2027. Franchise Loan Facility Amendment On April 1, 2022, the Company also entered into a new $12.5 million unsecured franchise loan facility (the "Franchise Loan Facility"), which replaced its previous $15.0 million amended and restated unsecured franchise loan facility dated as of November 10, 2021. The Franchise Loan Facility operates as a guarantee by the Company of certain debt obligations of certain Aaron's franchisees (the "Borrower") under a franchise loan program. In the event these franchisees are unable to meet their debt service payments or otherwise experience an event of default, the Company would be unconditionally liable for the outstanding balance of the franchisees’ debt obligations under the Franchise Loan Facility, which would be due in full within 90 days of such event of default. Borrowings under the Franchise Loan Facility bear interest at a rate per annum equal to SOFR plus an applicable margin ranging between 1.50% and 2.25%, based on the Company's Total Net Debt to EBITDA Ratio (as defined in the Franchise Loan Facility). The Franchise Loan Facility is available for a period of 364 days commencing on April 1, 2022, and permits the Borrower to request extensions for additional 364-day periods. On February 10, 2023, the Company amended its Franchise Loan Facility to extend the maturity date from March 31, 2023 to March 30, 2024. Subsequently on February 23, 2023, the Company amended its Franchise Loan Facility to reduce the total commitment amount from $12.5 million to $10.0 million. Financial Covenants The Credit Facility and the Franchise Loan Facility contain customary financial covenants including (a) a maximum Total Net Debt to EBITDA Ratio of 2.75 to 1.00 and (b) a minimum Fixed Charge Coverage Ratio of 1.75 to 1.00. If the Company fails to comply with these covenants, the Company will be in default under these agreements, and all borrowings outstanding could become due immediately. Under the Credit Facility and Franchise Loan Facility, the Company may pay cash dividends in any year so long as, after giving pro forma effect to the dividend payment, the Company maintains compliance with its financial covenants and no event of default has occurred or would result from the payment. The Company is in compliance with all covenants under the Credit Facility at June 30, 2023.

v3.23.2

Revenue Recognition	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue Recognition	REVENUE RECOGNITION The following table disaggregates revenue by source: Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2023 2022 2023 2022 Lease Revenues and Fees $ 353,751  $ 386,513  $ 727,546  $ 795,831  Retail Sales 148,046  190,848  298,592  203,455  Non-Retail Sales 22,800  27,042  46,735  54,869  Franchise Royalties and Fees 5,588  5,792  11,486  11,910  Other 187  189  374  401  Total Revenues1 $ 530,372  $ 610,384  $ 1,084,733  $ 1,066,466  1 Includes revenues from Canadian operations of $4.3 million and $8.7 million during the three and six months ended June 30, 2023, respectively, (three and six months ended June 30, 2022: $4.8 million and $9.7 million, respectively), which are primarily lease revenues and fees. Lease Revenues and Fees The Aaron's Business segment, which includes BrandsMart Leasing, provides lease merchandise, consisting of furniture, appliances, electronics, computers, and other home goods to their customers for lease under certain terms agreed to by the customer. The Aaron's Business segment offers leases with flexible ownership plans that can be generally renewed weekly, bi-weekly, semi-monthly, or monthly up to 12, 18 or 24 months and does not require deposits upon inception of customer agreements. The customer has the right to acquire ownership either through an early purchase option or through payment of all required lease payments through the end of the ownership plan. Aaron's also offers customers the option to obtain a membership in the Aaron’s Club program. The benefits to customers of the Aaron's Club program are separated into three general categories: (a) lease protection benefits; (b) health & wellness discounts; and (c) dining, shopping and consumer savings. Lease agreements offered by the Aaron's Business segment including the Aaron's Club program memberships and BrandsMart Leasing, are cancellable at any time by either party without penalty, and as such, these offerings are renewable period to period arrangements. Lease revenues related to the leasing of merchandise and Aaron's Club membership fees are recognized as revenue in the month they are earned. 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. Lease payments due but not received prior to month end are recorded as accounts receivable in the accompanying condensed consolidated balance sheets. Lease revenues are recorded net of a provision for returns and uncollectible renewal payments. All of Aaron's customer lease agreements, including BrandsMart Leasing, are considered operating leases. The Company maintains ownership of the lease merchandise until all payment obligations are satisfied under lease agreements. Initial direct costs related to customer agreements are expensed as incurred and have been classified as other operating expenses, net in the condensed consolidated statements of earnings. The statement of earnings effects of expensing the initial direct costs as incurred are not materially different from amortizing initial direct costs over the lease ownership plan. Substantially all lease revenues and fees were within the scope of ASC 842, Leases, during the three and six months ended June 30, 2023 and 2022. Included in lease revenues and fees above, the Company had $6.2 million and $12.5 million of other revenue during the three and six months ended June 30, 2023, respectively, (three and six months ended June 30, 2022: $7.0 million and $14.0 million, respectively) within the scope of ASC 606, Revenue from Contracts with Customers, which is included in lease revenues and fees above. Lease revenues and fees are recorded within lease revenues and fees in the accompanying condensed consolidated statements of earnings. Retail Sales All retail sales revenue is within the scope of ASC 606, Revenue from Contracts with Customers, during the three and six months ended June 30, 2023 and 2022. Aaron's Business Revenues from the retail sale of lease merchandise to individual consumers are recognized at the point of sale and are recorded within retail sales in the accompanying condensed consolidated statements of earnings. Generally, the transfer of control occurs near or at the point of sale for retail sales. Aaron's Business retail sales are not subject to a returns policy. BrandsMart Revenues from the retail sale of merchandise inventories are recorded within retail sales in the accompanying condensed consolidated statement of earnings and are recognized at a point in time that the Company has satisfied its performance obligation and transferred control of the product to the respective customer. Revenues associated with retail sales transactions for which control has not transferred are deferred and are recorded within customer deposits and advance payments within the accompanying consolidated balance sheets. Retail sales at the BrandsMart segment, both in store and online, are subject to the segment's 30-day return policy. Accordingly, an allowance, based on historical returns experience, for sales returns is recorded as a component of retail sales in the period in which the related sales are recorded as well as an asset for the returned merchandise. The return asset and allowance for sales returns as of June 30, 2023 was $2.4 million and $3.2 million, respectively, compared to $3.0 million and $4.0 million as of December 31, 2022, respectively. The return asset and allowance for sales returns was recorded within prepaid and other assets and accounts payable and accrued expenses within the accompanying consolidated balance sheets, respectively. Additional protection plans can be purchased by BrandsMart U.S.A. customers that provides extended warranty coverage on their product purchases, with payment being due for this protection at the point of sale. A third-party underwriter assumes the risk associated with the coverage and is primarily responsible for fulfillment. The Company is an agent to the contract and records the fixed commissions within retail sales in the accompanying condensed consolidated statements of earnings on a net basis. Non-Retail Sales Revenues for the non-retail sale of merchandise to Aaron's franchisees are recognized when control transfers to the franchisee, which is upon delivery of the merchandise and are recorded within non-retail sales in the accompanying condensed consolidated statements of earnings. All non-retail sales revenue is within the scope of ASC 606, Revenue from Contracts with Customers, during the three and six months ended June 30, 2023 and 2022. Franchise Royalties and Fees We have existing agreements with our current Aaron's franchisees to govern the operations of franchised stores. Our standard agreement is for a term of ten years, with one ten-year renewal option. Franchisees are obligated to remit to us royalty payments of 6% of the weekly cash revenue payments received, which is recognized as the fees become due. 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 to these condensed consolidated financial statements for additional discussion of the franchise-related guarantee obligation. The Company also charges fees for advertising efforts that benefit the franchisees, which are recognized at the time the advertising takes place. Substantially all franchise royalties and fee revenue is within the scope of ASC 606, Revenue from Contracts with Customers. Of the franchise royalties and fees, $4.4 million and $9.2 million during the three and six months ended June 30, 2023, respectively (three and six months ended June 30, 2022: $4.6 million and $9.5 million, respectively), is related to franchise royalty income that is recognized as the fees become due. The remaining revenue is primarily related to advertising fees charged to franchisees. Franchise royalties and fees are recorded within franchise royalties and other revenues in the accompanying condensed consolidated statements of earnings.

v3.23.2

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENT AND CONTINGENCIES Guarantees The Company has guaranteed certain debt obligations of some of its Aaron's franchisees under a franchise loan program (the "Franchise Loan Facility") as described in further detail in Note 4 to these condensed consolidated financial statements. The Company has recourse rights to franchisee assets securing the debt obligations, which consist primarily of lease merchandise and fixed assets. Since the inception of the franchise loan program in 1994, the Company's losses associated with the program have been insignificant. However, the Company could incur losses that could be significant in a future period due to potential adverse trends in the liquidity and/or financial performance of Aaron's franchisees resulting in an event of default or impending defaults by franchisees. The Company entered into a new Franchise Loan Facility agreement on April 1, 2022, which reduced the total commitment under the Franchise Loan Facility from $15.0 million to $12.5 million and extended the commitment termination date to March 31, 2023. On February 10, 2023, the Company amended its Franchise Loan Facility to extend the maturity date from March 31, 2023 to March 30, 2024. Subsequently on February 23, 2023, the Company amended its Franchise Loan Facility to reduce the total commitment amount from $12.5 million to $10.0 million. At June 30, 2023, the maximum amount that the Company would be obligated to repay in the event franchisees defaulted was $4.5 million. The Company is subject to financial covenants under the Franchise Loan Facility as detailed in Note 4 to these condensed consolidated financial statements. At June 30, 2023, the Company was in compliance with all covenants under the Franchise Loan Facility agreement. The Company records a liability related to estimated future losses from repaying the franchisees' outstanding debt obligations upon any possible future events of default. This liability is included in accounts payable and accrued expenses in the condensed consolidated balance sheets and was $1.0 million and $1.3 million at June 30, 2023 and December 31, 2022, respectively. The balances at June 30, 2023 and December 31, 2022 included qualitative consideration of potential losses associated with uncertainties impacting the operations and liquidity of our franchisees. Uncertainties include inflationary and other economic pressures in the current macroeconomic environment. Legal Proceedings From time to time, the Company is party to various legal and regulatory proceedings arising in the ordinary course of business, certain of which have been described below. The Company establishes an accrued liability for legal and regulatory proceedings when it determines that a loss is both probable and the amount of the loss can be reasonably estimated. The Company continually monitors its litigation and regulatory exposure and reviews the adequacy of its legal and regulatory reserves on a quarterly basis. The amount of any loss ultimately incurred in relation to matters for which an accrual has been established may be higher or lower than the amounts accrued for such matters due to the inherent uncertainty in litigation, regulatory and similar adversarial proceedings, and substantial losses from these proceedings or the costs of defending them could have a material adverse impact upon the Company’s business, financial position, and results of operations. The Company had accrued $0.4 million and $2.7 million at June 30, 2023 and December 31, 2022, respectively, for pending legal and regulatory matters for which it believes losses are probable and is management’s best estimate of its exposure to loss. The Company records these liabilities in accounts payable and accrued expenses in the condensed consolidated balance sheets. The Company estimates that the aggregate range of reasonably possible loss in excess of accrued liabilities for such probable loss contingencies is between zero and $0.5 million. At June 30, 2023, the Company estimated that the aggregate range of loss for all material pending legal and regulatory proceedings for which a loss is reasonably possible, but less likely than probable (i.e., excluding the contingencies described in the preceding paragraph), is between zero and $0.5 million. Those matters for which a reasonable estimate is not possible are not included within estimated ranges and, therefore, the estimated ranges do not represent the Company's maximum loss exposure. The Company's estimates for legal and regulatory accruals, aggregate probable loss amounts and reasonably possible loss amounts, are all subject to the uncertainties and variables described above. Other Contingencies Management regularly assesses the Company's insurance deductibles, monitors litigation and regulatory exposure with the Company's attorneys, and evaluates its loss experience. The Company also enters into various contracts in the normal course of business that may subject it to risk of financial loss if counterparties fail to perform their contractual obligations.

v3.23.2

Restructuring	6 Months Ended
	Jun. 30, 2023
Restructuring and Related Activities [Abstract]
Restructuring	RESTRUCTURING As management continues to execute on its long-term strategic plan, additional benefits and charges are expected to result from our restructuring programs. The extent of any future charges related to our restructuring programs are not currently estimable and depend on various factors including the timing and scope of future cost optimization initiatives. Operational Efficiency and Optimization Restructuring Program During the third quarter of 2022, the Company initiated an operational efficiency and optimization restructuring program intended to strengthen operational efficiencies and reduce the Company’s overall costs. Management believes that this restructuring program will help the Company sharpen its operational focus, optimize its cost profile, allocate capital resources towards long-term strategic objectives, and generate incremental value for shareholders through investments in technological capabilities, and fulfillment center logistics competencies. Since initiation, the program has resulted in the closure or consolidation of 29 Company-operated Aaron's stores. This program also includes the hub and showroom model to optimize labor and other operating expenses in markets, store labor realignments, rationalization of the Company's supply chain, the centralization and restructuring of store support center, operations, and multi-unit store oversight functions, as well as other real estate and third party spend costs reductions. Total net restructuring expenses under the Operational Efficiency and Optimization Restructuring Program related to the initiatives described above were $1.6 million and $4.4 million during the three and six months ended June 30, 2023. Such expenses were recorded within the Unallocated Corporate category for segment reporting and were comprised mainly of professional advisory fees in the three months ended June 30, 2023 and severance charges in the three months ended March 31, 2023, primarily related to the Company's January 2023 headcount reduction of its store support center and Aaron's Business store oversight functions. Throughout the six months ended June 30, 2023 we also incurred continuing variable occupancy costs related to closed stores, operating lease right-of-use asset impairment charges and fixed asset impairment charges. Since inception of the operational efficiency and optimization restructuring program, the Company has incurred charges of $16.0 million under the plan. These cumulative charges are primarily comprised of operating lease right-of-use asset and fixed impairment charges, continuing variable occupancy costs incurred related to closed stores, professional advisory fees, and severance related to reductions in store support center and field support staff headcount. Real Estate Repositioning and Optimization Restructuring Program During the first quarter of 2020, the Company initiated a real estate repositioning and optimization restructuring program. This program includes a strategic plan to remodel, reposition, and consolidate our Company-operated Aaron's store footprint over the next three to four years. We believe that such strategic actions will allow Aaron's to continue to successfully serve our markets while continuing to utilize our growing aarons.com platform. Management expects that this strategy, along with our increased use of technology, will enable us to reduce store count while retaining a significant portion of our existing customer relationships as well as attract new customers. Since initiation, the program has resulted in the closure, consolidation, or relocation of 232 Company-operated Aaron's stores during 2020, 2021, 2022 and the first six months of 2023. This program also resulted in the closure of one administrative store support building, a further rationalization of our store support center staff, which included a reduction in employee headcount in those areas to more closely align with current business conditions. As of June 30, 2023, we have identified approximately 30 remaining Aaron's stores for closure, consolidation, or relocation that have not yet been closed and vacated, which are expected to close during the remainder of 2023. Total net restructuring expenses under the real estate repositioning and optimization restructuring program were $3.3 million and $5.7 million during the three and six months ended June 30, 2023. Restructuring expenses were recorded within the Unallocated Corporate category of segment reporting and were comprised mainly of continuing variable occupancy costs incurred related to closed stores and operating lease right-of-use asset and fixed asset impairment charges related to the vacancy or planned vacancy of stores identified for closure. Since inception of the real estate repositioning and optimization program, the Company has incurred charges of $67.3 million under the plan. These cumulative charges are primarily comprised of operating lease right-of-use asset and fixed impairment charges, losses recognized related to contractual lease obligations, and severance related to reductions in store support center and field support staff headcount. The following table summarizes restructuring charges for the three and six months ended June 30, 2023 and 2022, respectively, under the Company's restructuring programs: Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2023 2022 2023 2022 Right-of-Use Asset Impairment $ 861  $ 3,158  $ 1,635  $ 4,336  Operating Lease Charges1 2,712  922  4,620  2,364  Fixed Asset Impairment 58  1,206  180  1,451  Severance2 (372) —  1,830  418  Other Expenses3 1,576  266  1,859  380  Net Losses (Gain) on Sale of Store Properties and Related Assets —  30  —  (32) Total Restructuring Expenses, Net $ 4,835  $ 5,582  $ 10,124  $ 8,917  1 Includes an accrual of $1.4 million for deferred maintenance on previously restructured properties. 2 During the three months ended June 30, 2023, the Company had a partial reversal of severance charges that were originally estimated in connection with the Company's January 2023 headcount reduction. 3 Includes professional advisory fees and net gains related to the sale of store properties and related assets. The following table summarizes the activity for the six months ended June 30, 2023 and the corresponding accrual balance as of June 30, 2023 for the restructuring programs: (In Thousands) Severance Operating Lease Charges1,2 Professional Advisory Fees Balance at January 1, 2023 $ 695  $ 2,200  $ 1,032  Restructuring Charges (Reversals) 1,830  1,409  1,440  Payments (2,525) (2,200) (1,845) Balance at June 30, 2023 $ —  $ 1,409  $ 627  1 Operating lease charge liabilities outstanding at January 1, 2023 represent expenses related to a real estate-related settlement which remained payable at December 31, 2022 and was subsequently paid during the first quarter of 2023. 2 Operating lease charges payable at June 30, 2023 relate to accrued maintenance charges at various properties vacated in conjunction with the restructuring programs discussed herein. These liabilities are included within accounts payable and accrued expenses in the condensed consolidated balance sheets

v3.23.2

Segments	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Segments	SEGMENTS Segment Reporting For all periods prior to April 1, 2022, the Company only had one operating and reportable segment. Effective as of April 1, 2022 and in connection with the acquisition of BrandsMart U.S.A., the Company updated its reportable segments to align the reportable segments with the current organizational structure and the operating results that the chief operating decision maker regularly reviews to analyze performance and allocate resources, which includes two operating and reportable segments: Aaron's Business and BrandsMart, along with an Unallocated Corporate category for remaining unallocated costs. The Aaron's Business segment includes the operations of the Pre-Spin Aaron's business (as described in the 2022 Annual Report), which continued after the separation to provide consumers with LTO and retail purchase solutions through the Company's Aaron's stores in the United States and Canada and the aarons.com e-commerce platform. This operating segment also supports franchisees of its Aaron's stores. In addition, the Aaron's Business segment includes the operations of BrandsMart Leasing, which offers a lease-to-own solution to customers of BrandsMart U.S.A., and Woodhaven, which manufactures and supplies a significant portion of the upholstered furniture leased and sold in Company-operated and franchised Aaron's stores. The BrandsMart segment includes the operations of BrandsMart U.S.A. (other than BrandsMart Leasing), which is one of the leading appliance and consumer electronics retailers in the southeastern United States and one of the largest appliance retailers in the country with ten stores in Florida and Georgia and a growing e-commerce presence on brandsmartusa.com. The results of BrandsMart have been included in the Company's consolidated results from the April 1, 2022 acquisition date. Measurement of Segment Profit or Loss and Segment Assets The Company evaluates segment performance based primarily on revenues and earnings (losses) from operations before unallocated corporate costs, which are evaluated on a consolidated basis and not allocated to the Company's business segments. Intersegment sales between BrandsMart and the Aaron's Business pertaining to BrandsMart Leasing, are recognized at retail prices. Since the intersegment profit affects cost of goods sold, depreciation and lease merchandise valuation, they are adjusted when intersegment profit is eliminated in consolidation. The Company determines earnings (losses) before income taxes for all reportable segments in accordance with U.S. GAAP. Unallocated Corporate costs are presented separately and generally include unallocated costs associated with the following: equity-based compensation, interest income and expense, information security, executive compensation, legal and compliance, corporate governance, accounting and finance, human resources and other corporate functions. The Unallocated Corporate category also includes acquisition-related costs, restructuring charges and separation costs for which the individual operating segments are not being evaluated. The Company does not evaluate performance or allocate resources based on segment asset data, and therefore total segment assets are not presented. Three Months Ended June 30, 2023 (In Thousands) Aaron's Business BrandsMart Elimination of Intersegment Revenues Total Lease Revenues and Fees $ 353,751  $ —  $ —  $ 353,751  Retail Sales 6,615  143,776  (2,345) 148,046  Non-Retail Sales 22,800  —  —  22,800  Franchise Royalties and Fees 5,588  —  —  5,588  Other 187  —  —  187  Total Revenues $ 388,941  $ 143,776  $ (2,345) $ 530,372  Three Months Ended June 30, 2023 (In Thousands) Aaron's Business BrandsMart Unallocated Corporate1 Elimination Total Gross Profit $ 246,839  $ 35,569  $ —  $ (136) $ 282,272  Earnings (Losses) Before Income Taxes 30,840  1,083  (23,833) (88) 8,002  Depreciation and Amortization2 18,655  3,390  222  —  22,267  Capital Expenditures 15,629  4,293  1,434  —  21,356  1 The losses before income taxes for the Unallocated Corporate category during the three months ended June 30, 2023 was impacted by restructuring charges of $4.8 million, and BrandsMart U.S.A. acquisition-related costs of $0.5 million. 2 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization. Three Months Ended June 30, 2022 (In Thousands) Aaron's Business BrandsMart Elimination of Intersegment Revenues Total Lease Revenues and Fees $ 386,513  $ —  $ —  $ 386,513  Retail Sales 10,709  181,442  (1,303) 190,848  Non-Retail Sales 27,042  —  —  27,042  Franchise Royalties and Fees 5,792  —  —  5,792  Other 189  —  —  189  Total Revenues $ 430,245  $ 181,442  $ (1,303) $ 610,384  Three Months Ended June 30, 2022 (In Thousands) Aaron's Business BrandsMart1 Unallocated Corporate2 Elimination Total Gross Profit $ 270,611  $ 22,875  $ —  $ (339) $ 293,147  Earnings (Losses) Before Income Taxes 29,520  (15,919) (26,736) (339) (13,474) Depreciation and Amortization3 18,513  3,368  364  —  22,245  Capital Expenditures 29,975  659  1,950  —  32,584  1 Losses before income taxes for the BrandsMart segment during the three months ended June 30, 2022 was impacted by a one-time, non-cash charge for a fair value adjustment to the acquired merchandise inventories of $23.0 million. 2 The losses before income taxes for the Unallocated Corporate category during the three months ended June 30, 2022 was impacted by BrandsMart U.S.A. acquisition-related costs of $8.0 million, restructuring charges of $5.6 million and separation-related costs of $0.2 million. 3 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization. Six months ended June 30, 2023 (In Thousands) Aaron's Business BrandsMart Elimination of Intersegment Revenues Total Lease Revenues and Fees $ 727,546  $ —  $ —  $ 727,546  Retail Sales 14,933  287,934  (4,275) 298,592  Non-Retail Sales 46,735  —  —  46,735  Franchise Royalties and Fees 11,486  —  —  11,486  Other 374  —  —  374  Total Revenues $ 801,074  $ 287,934  $ (4,275) $ 1,084,733  Six months ended June 30, 2023 (In Thousands) Aaron's Business1 BrandsMart Unallocated Corporate2 Elimination Total Gross Profit $ 507,545  $ 70,704  $ —  $ (283) $ 577,966  Earnings (Losses) Before Income Taxes 66,699  195  (49,804) (196) 16,894  Depreciation and Amortization3 37,358  7,035  444  —  44,837  Capital Expenditures 33,658  5,209  2,698  —  41,565  1 The earnings before income taxes for the Aaron's Business during the six months ended June 30, 2023 includes a $3.8 million receipt from the settlement of a class action lawsuit related to alleged anti-competitive conduct by several manufacturers of cathode ray tubes. 2 The losses before income taxes for the Unallocated Corporate category during the six months ended June 30, 2023 was impacted by restructuring charges of $10.1 million, BrandsMart U.S.A. acquisition-related costs of $2.4 million, and separation-related costs of $0.1 million. 3 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization. Six months ended June 30, 2022 (In Thousands) Aaron's Business BrandsMart Elimination of Intersegment Revenues Total Lease Revenues and Fees $ 795,831  $ —  $ —  $ 795,831  Retail Sales 23,316  181,442  (1,303) 203,455  Non-Retail Sales 54,869  —  —  54,869  Franchise Royalties and Fees 11,910  —  —  11,910  Other 401  —  —  401  Total Revenues $ 886,327  $ 181,442  $ (1,303) $ 1,066,466  Six months ended June 30, 2022 (In Thousands) Aaron's Business BrandsMart1 Unallocated Corporate2 Elimination Total Gross Profit $ 555,558  $ 22,875  $ —  $ (339) $ 578,094  Earnings (Loss) Before Income Taxes 81,681  (15,919) (49,992) (339) 15,431  Depreciation and Amortization3 36,265  3,368  761  —  40,394  Capital Expenditures 53,235  659  3,793  —  57,687  1 Losses before income taxes for the BrandsMart segment during the six months ended June 30, 2022 were impacted by a one-time, non-cash charge for a fair value adjustment to the acquired merchandise inventories of $23.0 million. 2 Losses before income taxes for the Unallocated Corporate category during the six months ended June 30, 2022 were impacted by BrandsMart U.S.A. acquisition-related costs of $11.5 million, restructuring charges of $8.9 million and separation-related costs of $0.8 million. 3 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization.

v3.23.2

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net Earnings (Loss), As Reported	$ 6,517	$ 12,798	$ (5,342)	$ 21,532	$ 19,315	$ 16,190

v3.23.2

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

v3.23.2

Basis and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Description of Business	Description of Business The Aaron's Company, Inc. (the "Company") is a leading, technology-enabled, omni-channel provider of lease-to-own ("LTO") and retail purchase solutions of furniture, electronics, appliances, and other home goods across its brands: Aaron's, BrandsMart U.S.A., BrandsMart Leasing, and Woodhaven Furniture Industries ("Woodhaven"). Unless the context otherwise requires or we specifically indicate otherwise, references to "we," "us," "our," and the "Company," refer to The Aaron's Company, Inc., which holds, directly or indirectly, the Pre-Spin Aaron’s Business (as described in the 2022 Annual Report) and all other subsidiaries of the Company, which are wholly owned, as well as other lines of business described above. As of June 30, 2023, the Company's operating and reportable segments are the Aaron's Business and BrandsMart, each as described below. Effective as of April 1, 2022 and in connection with the acquisition of BrandsMart U.S.A., the Company changed its composition of reportable segments to align the reportable segments with the current organizational structure and the operating results that the chief operating decision maker regularly reviews to analyze performance and allocate resources, which includes separate segments for the Aaron's Business and BrandsMart, along with an Unallocated Corporate category for remaining unallocated costs. The Aaron's Business segment is comprised of (i) Aaron's branded Company-operated and franchise-operated stores; (ii) aarons.com e-commerce platform ("aarons.com"); (iii) Woodhaven; and (iv) BrandsMart Leasing (collectively, the "Aaron’s Business"). The operations of BrandsMart U.S.A. (excluding BrandsMart Leasing) comprise the BrandsMart segment (collectively, "BrandsMart").
Basis of Presentation	Basis of Presentation The financial statements as of and for the three and six months ended June 30, 2023 and comparable prior year periods are condensed consolidated financial statements of the Company and its subsidiaries, each of which is wholly-owned, and is based on the financial position and results of operations of the Company. Intercompany balances and transactions between consolidated entities have been eliminated. These condensed consolidated financial statements reflect the historical results of operations, financial position and cash flows of the Company in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). The preparation of the Company's condensed consolidated financial statements in conformity with 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. The extent to which inflationary and other economic pressures will impact the Company's business will depend on future developments. These developments are uncertain and cannot be precisely predicted at this time. In many cases, management's estimates and assumptions are dependent on estimates of such future developments and may change in the future. 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 2022 Annual Report. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of operating results that may be achieved for any other interim period or for the full year.
Accounting Policies and Estimates	Accounting Policies and EstimatesSee Note 1 to the consolidated and combined financial statements in the 2022 Annual Report for an expanded discussion of accounting policies and estimates.
Earnings (Losses) Per Share	Earnings (Losses) Per ShareEarnings 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"), performance share units ("PSUs") and other awards issuable under the Company's 2020 Equity and Incentive Plan or employee stock purchase plan ("ESPP"), (collectively, "share-based awards"), as determined under the treasury stock method, unless the inclusion of such awards would have been anti-dilutive.
Revenue Recognition	Revenue Recognition The Company provides lease and retail merchandise, consisting of appliances, electronics, furniture, and other home goods to its customers for lease under certain terms agreed to by the customer and through retail sales. The Company's Aaron's stores, aarons.com e-commerce platform, and BrandsMart Leasing components of the Aaron's Business segment offer leases with flexible ownership plans that can be generally renewed weekly, bi-weekly, semi-monthly, or monthly up to 12, 18 or 24 months. The Aaron's Business segment also earns revenue from the sale of merchandise to customers and Aaron's franchisees, and earns ongoing revenue from Aaron's franchisees in the form of royalties and through advertising efforts that benefit the franchisees. The Company's BrandsMart U.S.A. stores and related brandsmartusa.com e-commerce platform offer the sale of merchandise directly to its customers via retail sales. See Note 5 to these condensed consolidated financial statements for further information regarding the Company's revenue recognition policies and disclosures.
Advertising	AdvertisingThe Company expenses advertising costs as incurred. Advertising production costs are initially recognized as a prepaid advertising asset and are expensed when an advertisement appears for the first time. Total advertising costs were $6.6 million and $19.6 million during the three and six months ended June 30, 2023, respectively, (three and six months ended June 30, 2022: $12.6 million and $23.3 million, respectively) and are classified within other operating expenses, net in the condensed consolidated statements of earnings. These advertising costs are presented net of cooperative advertising considerations received from vendors, which represents reimbursement of specific, identifiable and incremental costs incurred in selling those vendors’ products.
Accounts Receivable	Accounts Receivable Accounts receivable consist of receivables due from customers on lease agreements, corporate receivables incurred during the normal course of business (primarily for vendor consideration and third-party warranty providers), and franchisee obligations. The Company maintains an accounts receivable allowance for the Aaron's Business customer lease agreements, under which its policy is to record a provision for returns and uncollectible contractually due renewal payments based on historical payments experience, which is recognized as a reduction of lease revenues and fees within the condensed consolidated statements of earnings. Other qualitative factors are considered in estimating the allowance, such as current and forecasted business trends. The Company writes off customer lease receivables, excluding customer lease receivables for its BrandsMart Leasing operations, that are 60 days or more past due on pre-determined dates twice monthly. The Company writes off customer lease receivables for its BrandsMart Leasing operations that are 90 days or more past due on pre-determined dates twice monthly. The Company also maintains an allowance for outstanding franchisee accounts receivable. The Company's policy is to estimate future losses related to certain franchisees that are deemed to have a higher risk of non-payment and record an allowance for these estimated losses. The estimated allowance on franchisee accounts receivable includes consideration of the financial position of each franchisee and qualitative consideration of potential losses associated with uncertainties impacting the franchisee's ability to satisfy their obligations. Uncertainties include inflationary and other economic pressures in the current macroeconomic environment. Accordingly, actual accounts receivable write-offs could differ from the allowance. The provision for uncollectible franchisee accounts receivable is recorded as bad debt expense in other operating expenses, net within the condensed consolidated statements of earnings. The allowance related to corporate receivables is not significant as of June 30, 2023 and December 31, 2022.
Lease Merchandise	Lease Merchandise The Company’s lease merchandise is recorded at the lower of depreciated cost, including overhead costs from our distribution centers, 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 begins depreciating lease merchandise at the earlier of 12 months and one day from its purchase of the merchandise or when the merchandise is leased to customers. Lease merchandise fully depreciates 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 Aaron's store-based operations' policies require weekly merchandise counts at its store-based operations, which include write-offs for unsalable, damaged, or missing merchandise inventories. Monthly cycle counting procedures are performed at both the Aaron's distribution centers and Woodhaven manufacturing facilities. Physical inventories are also taken at the manufacturing facilities annually. The Company also monitors merchandise levels and mix by division, store, and distribution center, as well as the average age of merchandise on hand. If obsolete merchandise cannot be returned to vendors, its carrying amount is adjusted to its net realizable value or written off. Generally, all merchandise not on lease is available for lease or sale. On a monthly basis, all damaged, lost or unsalable merchandise identified is written off and is included as a component of the provision for lease merchandise write-offs in the accompanying condensed consolidated statements of earnings. The Company records a provision for write-offs using the allowance method, which is included within lease merchandise, net within the condensed consolidated balance sheets. The allowance method for lease merchandise write-offs estimates the merchandise losses incurred but not yet identified by management as of the end of the accounting period based primarily on historical write-off experience. Other qualitative factors are considered in estimating the allowance, such as seasonality and the impacts of uncertainty surrounding inflationary and other economic pressures in the current macroeconomic environment and the normalization of business trends associated with the effects of the COVID-19 pandemic on our customers. Therefore, actual lease merchandise write-offs could differ from the allowance. The provision for write-offs is included in provision for lease merchandise write-offs in the accompanying condensed consolidated statements of earnings. The Company writes off lease merchandise on lease agreements, excluding lease agreements for its BrandsMart Leasing operations, that are 60 days or more past due on pre-determined dates twice monthly. The Company writes off lease merchandise on lease agreements for its BrandsMart Leasing operations that are 90 days or more past due on pre-determined dates twice monthly.
Merchandise Inventories	Merchandise Inventories The Company’s merchandise inventories are stated at the lower of weighted average cost or net realizable value and consist entirely of merchandise held for sale by the BrandsMart segment. In-bound freight-related costs from vendors, net of allowances and vendor rebates, are included as part of the net cost of merchandise inventories. Costs associated with storing and transporting merchandise inventories to our retail stores are expensed as incurred and included within retail cost of sales in the condensed consolidated statements of earnings. The Company periodically evaluates aged and distressed inventory and establishes an inventory markdown which represents the excess of the carrying value over the amount the Company expects to realize from the ultimate sale of the inventory. Markdowns establish a new cost basis for the inventory and are recorded within retail cost of sales within the condensed consolidated statement of earnings. The write-offs of merchandise inventories associated with the Company's cycle and physical inventory count processes are also included within retail cost of sales in the condensed consolidated statement of earnings. The Company records an inventory reserve for the anticipated loss associated with selling inventories below cost. This reserve is based on management’s current knowledge with respect to inventory levels, sales trends, and historical experience selling or disposing of aged or obsolete inventory. The following is a summary of merchandise inventories, net of allowances:
Derivative Instruments	Derivative Instruments In March 2023, the Company entered into a non-speculative interest rate swap agreement for an aggregate notional amount of $100.0 million with an effective date of April 28, 2023 and a termination date of March 31, 2027. The purpose of this hedge is to limit the Company's exposure of its variable interest rate debt by effectively converting it to fixed interest rate debt. Under the terms of the agreement, the Company will receive a floating interest rate based on 1-month Chicago Mercantile Exchange ("CME") Term Secured Overnight Financing Rate ("SOFR") and pay a fixed interest rate of 3.87% on the notional amount. The Company has accounted for the interest rate swap as a cash flow hedge instrument in accordance with ASC 815, Derivatives and Hedging ("ASC 815"). Accordingly, the effective portion of the gains and losses associated with the changes in the fair value of the cash flow hedge instrument are recognized as a component of accumulated other comprehensive loss in the Company's condensed consolidated balance sheets. Such amounts are reclassified into earnings in the same period during which the cash flow hedging instrument affects earnings. As of June 30, 2023, the facts and circumstances of the hedged relationship remain consistent with the initial effectiveness assessment and the hedging instrument remains an effective accounting hedge. The fair value of the hedge as of June 30, 2023 was an asset of $1.0 million, and has been recorded within prepaid expenses and other assets in the Company's condensed consolidated balance sheets. During the three and six months ended June 30, 2023, the Company reclassified $0.2 million of net losses from accumulated other comprehensive loss to interest expense. See Note 3 to these condensed consolidated financial statements for further information regarding the fair value determination of the Company's interest rate swap agreement. Derivative instruments in place during the prior year were not significant.
Estimated Claims Liability Costs	Estimated Claims Liability Costs Estimated claims liability costs are accrued primarily for workers compensation and vehicle liability, as well as general liability and group health insurance benefits provided to team members. These liabilities are recorded within estimated claims liability costs within accounts payable and accrued expenses in the condensed consolidated balance sheets. Estimates for these claims liabilities are made based on actual reported but unpaid claims and actuarial analysis of the projected claims run off for both reported and incurred but not reported claims. This analysis is based upon an assessment of the likely outcome or historical experience and considers a variety of factors, including the actuarial loss forecasts, company-specific development factors, general industry loss development factors and third-party claim administrator loss estimates of individual claims. The Company makes periodic prepayments to its insurance carriers to cover the projected claims run off for both reported and incurred but not reported claims, considering its retention or stop loss limits. In addition, we have prefunding balances on deposit and other insurance receivables with the insurance carriers which are recorded within prepaid expenses and other assets in our condensed consolidated balance sheets.
Goodwill	Goodwill Goodwill represents the excess of the purchase price paid over the fair value of the identifiable net tangible and intangible assets acquired in connection with business acquisitions. All acquisition-related goodwill balances are allocated amongst the Company's reporting units based on the nature of the acquired operations that originally created the goodwill. During the fourth quarter of 2022, in connection with its annual impairment testing, management evaluated the various components of the operating segments further described above and in Note 8 to these condensed consolidated financial statements and identified three reporting units, Aaron's Business, BrandsMart, and BrandsMart Leasing, each as described below. The Aaron's Business reporting unit is comprised of (i) Aaron's branded Company-operated and franchise operated stores; (ii) aarons.com e-commerce platform ("aarons.com"); and (iii) Woodhaven (collectively, the "Aaron’s Business reporting unit"). The Aaron's Business reporting unit is a component of the Aaron's Business operating segment. The operations of BrandsMart Leasing comprise the BrandsMart Leasing reporting unit (collectively, the "BrandsMart Leasing reporting unit"), and is a component of the Aaron's Business operating segment. Management considered the aggregation of the BrandsMart Leasing reporting unit and Aaron's Business reporting unit as a single reporting unit and determined that these components were economically dissimilar and also reviewed separately by the segment managers of the Aaron's Business operating segment, and therefore should not be aggregated. The operations of BrandsMart, comprise the BrandsMart reporting unit (collectively, the "BrandsMart reporting unit") and is also the sole component of the BrandsMart operating segment. The acquisition of BrandsMart U.S.A. in the second quarter of 2022 resulted in the recognition of approximately $55.8 million of goodwill, inclusive of measurement period adjustments further described in Note 2 to these condensed consolidated financial statements. Of this amount, $29.2 million was assigned to the BrandsMart reporting unit and $26.5 million was assigned to the BrandsMart Leasing reporting unit. The following table provides information related to the carrying amount of goodwill by operating segment. (In Thousands) Aaron's Business BrandsMart BrandsMart Leasing Total Balance at December 31, 2022 $ —  $ 28,193  $ 26,517  $ 54,710  Acquisitions —  —  —  —  Acquisition Accounting Adjustments —  1,040  —  1,040  Impairment Loss —  —  —  —  Balance at June 30, 2023 $ —  $ 29,233  $ 26,517  $ 55,750  The Company’s goodwill is not amortized but is subject to an impairment test at the reporting unit level annually as of October 1 and more frequently if events or circumstances indicate that an interim impairment may have occurred. An interim goodwill impairment test is required if the Company believes it is more likely than not that the carrying amount of its reporting unit exceeds the reporting unit's fair value. The Company determined that there were no events that occurred or circumstances that changed during the six months ended June 30, 2023 that would more likely than not reduce the fair value of its reporting units below their carrying amount. The Company may be required to recognize material impairments to the BrandsMart or BrandsMart Leasing goodwill balances in the future if: (i) the Company fails to successfully execute on one or more elements of the BrandsMart strategic plan; (ii) actual results are unfavorable to the Company's estimates and assumptions used to calculate fair value; (iii) the BrandsMart or BrandsMart Leasing carrying values increase without an associated increase in the fair value; and/or (iv) BrandsMart or BrandsMart Leasing is materially impacted by further deterioration of macroeconomic conditions, including inflation and other economic pressures, including rising interest rates.
Acquisition-Related Costs	Acquisition-Related CostsAcquisition-related costs of $0.5 million and $2.4 million were incurred during the three and six months ended June 30, 2023, and Acquisition-related costs of $8.0 million and $11.5 million were incurred during the three and six months ended 2022. These primarily represent internal control readiness third-party consulting, banking and legal expenses and retention bonuses associated with the acquisition of BrandsMart U.S.A. completed April 1, 2022.
Fair Value Measurement	Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: Level 1—Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3—Valuations based on unobservable inputs reflecting the Company's own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. The fair values of the Company's assets and liabilities as of June 30, 2023 and December 31, 2022 are further described in Note 3 to these condensed consolidated financial statements.
Recent Accounting Pronouncements	Recent Accounting Pronouncements There were no new accounting standards that had a material impact on the Company’s condensed consolidated financial statements during the six months ended June 30, 2023, and there were no other new accounting standards or pronouncements that were issued but not yet effective as of June 30, 2023 that the Company expects to have a material impact on its condensed consolidated financial statements.

v3.23.2

Basis and Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Schedule Of Company Operated Store Activity	The following table presents store count by ownership type: Stores as of June 30 (Unaudited) 2023 2022 Company-operated Aaron's Stores1 1,026  1,060  GenNext (included in Company-Operated) 230  171  Franchisee-operated Aaron's Stores 230  234  BrandsMart U.S.A. Stores2 10  10  Systemwide Stores 1,266  1,304  Company-operated Aaron's Store Types as of June 30, 2023 (Unaudited) GenNext Legacy Total Store 175  649  824  Hub 48  53  101  Showroom 7  94  101  Total 230  796  1,026  1 The typical layout for a Company-operated Aaron's store is a combination of showroom, customer service and warehouse space, averaging approximately 9,500 square feet. Certain Company-operated Aaron's stores consist solely of a showroom. 2 BrandsMart U.S.A. stores average approximately 100,000 square feet and have been included in this table subsequent to the acquisition date of April 1, 2022.
Calculation of Dilutive Stock Awards	The following table shows the calculation of weighted-average shares outstanding assuming dilution: Three Months Ended June 30, Six Months Ended June 30, (Shares In Thousands) 2023 2022 2023 2022 Weighted Average Shares Outstanding 30,993  30,827  30,894  30,944  Dilutive Effect of Share-Based Awards1 314  —  380  546  Weighted Average Shares Outstanding Assuming Dilution 31,307  30,827  31,274  31,490  1 There was no dilutive effect of share-based awards for the three months ended June 30, 2022 due to the net loss incurred in the period.
Accounts Receivable Net of Allowances	Accounts receivable, net of allowances, consist of the following:  (In Thousands) June 30, 2023 December 31, 2022 Customers $ 7,385  $ 9,721  Corporate 17,051  20,597  Franchisee 5,762  7,873  $ 30,198  $ 38,191
Allowance for Doubtful Accounts	The following table shows the components of the accounts receivable allowance: Six Months Ended June 30, (In Thousands) 2023 2022 Beginning Balance $ 8,895  $ 7,163  Accounts Written Off, net of Recoveries (22,108) (16,761) Accounts Receivable Provision 21,111  17,484  Ending Balance $ 7,898  $ 7,886  The following table shows the components of the accounts receivable provision, which includes amounts recognized for bad debt expense and the provision for returns and uncollected payments: Six Months Ended June 30, (In Thousands) 2023 2022 Bad Debt Expense (Reversal) $ 25  $ (203) Provision for Returns and Uncollectible Renewal Payments 21,086  17,687  Accounts Receivable Provision $ 21,111  $ 17,484
Schedule of Lease Merchandise	The following is a summary of lease merchandise, net of accumulated depreciation and allowances: (In Thousands) June 30, 2023 December 31, 2022 Merchandise on Lease, net of Accumulated Depreciation and Allowances $ 408,314  $ 446,923  Merchandise Not on Lease, net of Accumulated Depreciation and Allowances1 228,282  246,872  Lease Merchandise, net of Accumulated Depreciation and Allowances $ 636,596  $ 693,795  1 Includes Woodhaven raw materials, finished goods and work-in-process inventory that has been classified within lease merchandise in the condensed consolidated balance sheets of $11.0 million and $12.9 million as of June 30, 2023 and December 31, 2022, respectively.
Allowance for Lease Merchandise	The following table shows the components of the allowance for lease merchandise write-offs: Six Months Ended June 30, (In Thousands) 2023 2022 Beginning Balance $ 13,894  $ 12,339  Merchandise Written off, net of Recoveries (39,181) (43,140) Provision for Write-offs 39,161  44,070  Ending Balance $ 13,874  $ 13,269
Schedule of Merchandise Inventories	(In Thousands) June 30, 2023 December 31, 2022 Merchandise Inventories, gross $ 93,773  $ 96,945  Reserve for Merchandise Inventories (921) (981) Merchandise Inventories, net $ 92,852  $ 95,964  The following table shows the components of the reserve for merchandise inventories: Six Months Ended (In Thousands) June 30, 2023 Beginning Balance $ 981  Merchandise Written off —  Provision for Write-offs (60) Ending Balance1 $ 921  1 There were no significant markdown provisions recorded during the three and six months ended June 30, 2022.
Schedule of Prepaid Expenses and Other Assets	Prepaid expenses and other assets consist of the following: (In Thousands) June 30, 2023 December 31, 2022 Prepaid Expenses $ 19,159  $ 20,218  Insurance Related Assets 31,505  25,103  Company-Owned Life Insurance 14,633  13,443  Assets Held for Sale 1,113  1,857  Deferred Tax Assets 23,686  16,277  Other Assets1 20,741  19,538  $ 110,837  $ 96,436  1 Amounts as of June 30, 2023 and December 31, 2022 included restricted cash of $1.6 million held as collateral for BrandsMart U.S.A.'s workers' compensation and general liability insurance policies.
Schedule of Accounts Payable and Accrued Expenses	Accounts payable and accrued expenses consist of the following: (In Thousands) June 30, 2023 December 31, 2022 Accounts Payable $ 108,314  $ 106,966  Estimated Claims Liability Costs 60,790  58,549  Accrued Salaries and Benefits 34,779  33,932  Accrued Real Estate and Sales Taxes 23,390  24,030  Other Accrued Expenses and Liabilities 33,578  40,566  $ 260,851  $ 264,043
Schedule of Goodwill	The following table provides information related to the carrying amount of goodwill by operating segment. (In Thousands) Aaron's Business BrandsMart BrandsMart Leasing Total Balance at December 31, 2022 $ —  $ 28,193  $ 26,517  $ 54,710  Acquisitions —  —  —  —  Acquisition Accounting Adjustments —  1,040  —  1,040  Impairment Loss —  —  —  —  Balance at June 30, 2023 $ —  $ 29,233  $ 26,517  $ 55,750
Schedule of Stockholders Equity	Changes in stockholders' equity for the three and six months ended June 30, 2023 and 2022 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 Shares Amount Balance, December 31, 2022 (5,480) $ (138,753) 36,100  $ 18,050  $ 738,428  $ 79,073  $ (1,396) $ 695,402  Cash Dividends, $0.125 per share —  —  —  —  —  (3,966) —  (3,966) Stock-Based Compensation —  —  —  —  2,874  —  —  2,874  Issuance of Shares under Equity Plans (207) (2,539) 496  248  (248) —  —  (2,539) Net Earnings —  —  —  —  —  12,798  —  12,798  Unrealized (Loss) on Derivative Instruments, net of tax —  —  —  —  —  —  (990) (990) Foreign Currency Translation Adjustment, net of tax —  —  —  —  —  —  324  324  Balance, March 31, 2023 (5,687) $ (141,292) 36,596  $ 18,298  $ 741,054  $ 87,905  $ (2,062) $ 703,903  Cash Dividends, $0.125 per share —  —  —  —  —  (3,874) —  (3,874) Stock-Based Compensation —  —  —  —  2,913  —  —  2,913  Issuance of Shares under Equity Plans —  —  24  12  48  —  —  60  Acquisition of Treasury Stock (66) (804) —  —  —  —  —  (804) Net Earnings —  —  —  —  —  6,517  —  6,517  Unrealized Gain on Derivative Instruments, net of tax —  —  —  —  —  —  1,685  1,685  Foreign Currency Translation Adjustment, net of tax —  —  —  —  —  —  180  180  Balance, June 30, 2023 (5,753) $ (142,096) 36,620  $ 18,310  $ 744,015  $ 90,548  $ (197) $ 710,580    Treasury Stock Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Total Shareholders’ Equity (In Thousands, Except Per Share) Shares Amount Shares Amount Balance, December 31, 2021 (4,580) $ (121,804) 35,559  $ 17,779  $ 724,384  $ 98,546  $ (739) $ 718,166  Cash Dividends, $0.11 per share —  —  —  —  —  (3,584) —  (3,584) Stock-Based Compensation —  —  —  —  3,611  —  —  3,611  Issuance of Shares Under Equity Plans (163) (3,541) 410  205  (153) —  —  (3,489) Acquisition of Treasury Stock (262) (5,720) —  —  —  —  —  (5,720) Net Earnings —  —  —  —  —  21,532  —  21,532  Unrealized Gain on Fuel Hedge Derivative Instrument —  —  —  —  —  —  154  154  Foreign Currency Translation Adjustment —  —  —  —  —  —  238  238  Balance, March 31, 2022 (5,005) $ (131,065) 35,969  $ 17,984  $ 727,842  $ 116,494  $ (347) $ 730,908  Cash Dividends, $0.11 per share —  —  —  —  —  (3,541) —  (3,541) Stock-Based Compensation —  —  —  —  3,224  —  —  3,224  Issuance of Shares Under Equity Plans —  —  68  35  825  —  —  860  Acquisition of Treasury Stock (255) (5,335) —  —  —  —  —  (5,335) Net Loss —  —  —  —  —  (5,342) (5,342) Unrealized Gain on Fuel Hedge Derivative Instrument —  —  —  —  —  —  85  85  Foreign Currency Translation Adjustment —  —  —  —  —  —  (346) (346) Balance, June 30, 2022 (5,260) $ (136,400) 36,037  $ 18,019  $ 731,891  $ 107,611  $ (608) $ 720,513
Schedule of Accumulated Other Comprehensive Income (Loss)	Changes in accumulated other comprehensive income (loss) ("AOCI") by component for the six months ended June 30, 2023 and June 30, 2022 are summarized below: Six Months Ended June 30, 2023 (In Thousands) Derivative Instruments Foreign Currency Total Balance at December 31, 2022 $ (17) $ (1,379) $ (1,396) Other Comprehensive Income, net of Tax 695  504  1,199  Balance at June 30, 2023 $ 678  $ (875) $ (197) Six Months Ended June 30, 2022 (In Thousands) Derivative Instruments Foreign Currency Total Balance at December 31, 2021 $ —  $ (739) $ (739) Other Comprehensive Income (Loss), net of Tax 239  (108) 131  Balance at June 30, 2022 $ 239  $ (847) $ (608)

v3.23.2

Acquisitions (Tables)	6 Months Ended
	Jun. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The consideration transferred and the estimated fair values of the assets acquired and liabilities assumed in the BrandsMart U.S.A. acquisition as of the April 1, 2022 acquisition date are as follows: (In Thousands) Preliminary Amounts Recognized as of Acquisition Date1 2023 Measurement Period Adjustments2 Final Amounts Recognized as of Acquisition Date Cash Consideration to BrandsMart U.S.A. $ 230,000  $ —  $ 230,000  Acquired Cash 15,952  —  15,952  Estimated Excess Working Capital, net of Cash 35,599  —  35,599  Non-Cash Off-Market Lease Agreement3 6,823  —  6,823  Aggregate Consideration Transferred 288,374  —  288,374  Total Purchase Consideration, Net of Cash Acquired 272,422  —  272,422  Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed Accounts Receivable 4,310  —  4,310  Merchandise Inventories 124,064  173  124,237  Property, Plant and Equipment 22,053  (1,361) 20,692  Operating Lease Right-of-Use Assets 160,210  —  160,210  Other Intangibles4 122,950  —  122,950  Prepaid Expenses and Other Assets5 9,049  (80) 8,969  Total Identifiable Assets Acquired 442,636  (1,268) 441,368  Accounts Payable and Accrued Expenses 25,340  (2,050) 23,290  Customer Deposits and Advance Payments 25,332  1,822  27,154  Operating Lease Liabilities 158,712  —  158,712  Debt 15,540  —  15,540  Total Liabilities Assumed 224,924  (228) 224,696  Net Assets Acquired 217,712  (1,040) 216,672  Goodwill6 54,710  1,040  55,750  Total Estimated Fair Value of Net Assets Acquired $ 272,422  $ —  $ 272,422  1 As previously reported in the notes to the consolidated and combined financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022. 2 The measurement period adjustments recorded in 2023 primarily relate to opening balance sheet adjustments to certain asset and liability balances further illustrated in the table above. 3 Effective as of the acquisition date, the Company entered into lease agreements for six store locations retained by the sellers of BrandsMart U.S.A. The agreement includes initial terms of ten years, with options to renew each location for up to 20 years thereafter. The annual rent is considered to be above market. The value of the off-market element of the lease agreements has been included in consideration transferred and as a reduction to the operating lease right-of-use-asset. 4 Identifiable intangible assets are further disaggregated in the table set forth below. 5 Includes restricted cash of $2.5 million at the acquisition date that was held as collateral for BrandsMart U.S.A.'s workers' compensation and general liability insurance policies. 6 The purchase price exceeded the fair value of the net assets acquired, which resulted in the recognition of goodwill, all of which is expected to be deductible for tax purposes. Goodwill is comprised of synergies created from the expected future benefits to the Company, including those related to the expansion of BrandsMart stores into new markets, expanded product assortment, procurement synergies, the projected growth of the BrandsMart Leasing business, and certain other intangible assets that do not qualify for separate recognition, such as an assembled workforce. See Note 1 to these condensed consolidated financial statements for further discussion of the identification of the Company's reporting units and the allocation of goodwill and Note 8 for the discussion of operating segments associated with the BrandsMart U.S.A. acquisition.
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination	Intangible assets attributable to the BrandsMart U.S.A. acquisition are comprised of the following: Fair Value (In Thousands) Weighted Average Life (In Years) Trade Names $ 108,000  20.0 Non-Compete Agreements 250  3.0 Customer List 14,700  4.0 Total Acquired Intangible Assets $ 122,950
Business Acquisition, Pro Forma Information	The following table presents unaudited consolidated pro forma information as if the acquisition of BrandsMart U.S.A. had occurred on January 1, 2021, compared to actual, historical results. (Unaudited) Three Months Ended June 30, 2022 (In Thousands) As Reported Pro Forma Combined Results Revenues $ 610,384  $ 610,384  (Losses) Earnings Before Income Taxes (13,474) 17,609  Net (Losses) Earnings $ (5,342) $ 17,908  (Unaudited) Six Months Ended June 30, 2022 (In Thousands) As Reported Pro Forma Combined Results Revenues $ 1,066,466  $ 1,239,237  Earnings Before Income Taxes 15,431  53,053  Net Earnings $ 16,190  $ 44,068

v3.23.2

Fair Value Measurement (Tables)	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis	The following table summarizes financial liabilities measured at fair value on a recurring basis: (In Thousands) June 30, 2023 December 31, 2022   Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Deferred Compensation Liability $ —  $ (10,015) $ —  $ —  $ (8,621) $ —  Interest Rate Swap Asset (Liability) $ —  $ 980  $ —  $ —  $ —  $ —
Assets Measured at Fair Value on Nonrecurring Basis	The following table summarizes non-financial assets measured at fair value on a nonrecurring basis: (In Thousands) June 30, 2023 December 31, 2022 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Held for Sale $ —  $ 1,113  $ —  $ —  $ 1,857  $ —

v3.23.2

Indebtedness (Tables)	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Summary of Company's Credit Facilities	The following is a summary of the Company's debt, net of unamortized debt issuance costs as applicable: (In Thousands) June 30, 2023 December 31, 2022 Revolving Facility $ 15,000  $ 69,250  Term Loan, Due in Installments through April 20271 171,063  173,163  Total Debt 186,063  242,413  Less: Current Maturities 4,375  23,450  Long-Term Debt $ 181,688  $ 218,963  1 Includes unamortized debt issuance costs of $0.7 million and $0.7 million as of June 30, 2023 and December 31, 2022. The Company has included $2.5 million and $2.9 million of debt issuance costs as of June 30, 2023 and December 31, 2022, respectively, related to the new and previous revolving credit facility, within prepaid expenses and other assets in the condensed consolidated balance sheets.

v3.23.2

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table disaggregates revenue by source: Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2023 2022 2023 2022 Lease Revenues and Fees $ 353,751  $ 386,513  $ 727,546  $ 795,831  Retail Sales 148,046  190,848  298,592  203,455  Non-Retail Sales 22,800  27,042  46,735  54,869  Franchise Royalties and Fees 5,588  5,792  11,486  11,910  Other 187  189  374  401  Total Revenues1 $ 530,372  $ 610,384  $ 1,084,733  $ 1,066,466  1 Includes revenues from Canadian operations of $4.3 million and $8.7 million during the three and six months ended June 30, 2023, respectively, (three and six months ended June 30, 2022: $4.8 million and $9.7 million, respectively), which are primarily lease revenues and fees.

v3.23.2

Restructuring (Tables)	6 Months Ended
	Jun. 30, 2023
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	The following table summarizes restructuring charges for the three and six months ended June 30, 2023 and 2022, respectively, under the Company's restructuring programs: Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2023 2022 2023 2022 Right-of-Use Asset Impairment $ 861  $ 3,158  $ 1,635  $ 4,336  Operating Lease Charges1 2,712  922  4,620  2,364  Fixed Asset Impairment 58  1,206  180  1,451  Severance2 (372) —  1,830  418  Other Expenses3 1,576  266  1,859  380  Net Losses (Gain) on Sale of Store Properties and Related Assets —  30  —  (32) Total Restructuring Expenses, Net $ 4,835  $ 5,582  $ 10,124  $ 8,917  1 Includes an accrual of $1.4 million for deferred maintenance on previously restructured properties. 2 During the three months ended June 30, 2023, the Company had a partial reversal of severance charges that were originally estimated in connection with the Company's January 2023 headcount reduction. 3 Includes professional advisory fees and net gains related to the sale of store properties and related assets.
Schedule of Restructuring Reserve	The following table summarizes the activity for the six months ended June 30, 2023 and the corresponding accrual balance as of June 30, 2023 for the restructuring programs: (In Thousands) Severance Operating Lease Charges1,2 Professional Advisory Fees Balance at January 1, 2023 $ 695  $ 2,200  $ 1,032  Restructuring Charges (Reversals) 1,830  1,409  1,440  Payments (2,525) (2,200) (1,845) Balance at June 30, 2023 $ —  $ 1,409  $ 627  1 Operating lease charge liabilities outstanding at January 1, 2023 represent expenses related to a real estate-related settlement which remained payable at December 31, 2022 and was subsequently paid during the first quarter of 2023. 2 Operating lease charges payable at June 30, 2023 relate to accrued maintenance charges at various properties vacated in conjunction with the restructuring programs discussed herein. These liabilities are included within accounts payable and accrued expenses in the condensed consolidated balance sheets

v3.23.2

Segments (Tables)	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Information on Segments and Reconciliation to Earnings Before Income Taxes from Continuing Operations	The Company does not evaluate performance or allocate resources based on segment asset data, and therefore total segment assets are not presented. Three Months Ended June 30, 2023 (In Thousands) Aaron's Business BrandsMart Elimination of Intersegment Revenues Total Lease Revenues and Fees $ 353,751  $ —  $ —  $ 353,751  Retail Sales 6,615  143,776  (2,345) 148,046  Non-Retail Sales 22,800  —  —  22,800  Franchise Royalties and Fees 5,588  —  —  5,588  Other 187  —  —  187  Total Revenues $ 388,941  $ 143,776  $ (2,345) $ 530,372  Three Months Ended June 30, 2023 (In Thousands) Aaron's Business BrandsMart Unallocated Corporate1 Elimination Total Gross Profit $ 246,839  $ 35,569  $ —  $ (136) $ 282,272  Earnings (Losses) Before Income Taxes 30,840  1,083  (23,833) (88) 8,002  Depreciation and Amortization2 18,655  3,390  222  —  22,267  Capital Expenditures 15,629  4,293  1,434  —  21,356  1 The losses before income taxes for the Unallocated Corporate category during the three months ended June 30, 2023 was impacted by restructuring charges of $4.8 million, and BrandsMart U.S.A. acquisition-related costs of $0.5 million. 2 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization. Three Months Ended June 30, 2022 (In Thousands) Aaron's Business BrandsMart Elimination of Intersegment Revenues Total Lease Revenues and Fees $ 386,513  $ —  $ —  $ 386,513  Retail Sales 10,709  181,442  (1,303) 190,848  Non-Retail Sales 27,042  —  —  27,042  Franchise Royalties and Fees 5,792  —  —  5,792  Other 189  —  —  189  Total Revenues $ 430,245  $ 181,442  $ (1,303) $ 610,384  Three Months Ended June 30, 2022 (In Thousands) Aaron's Business BrandsMart1 Unallocated Corporate2 Elimination Total Gross Profit $ 270,611  $ 22,875  $ —  $ (339) $ 293,147  Earnings (Losses) Before Income Taxes 29,520  (15,919) (26,736) (339) (13,474) Depreciation and Amortization3 18,513  3,368  364  —  22,245  Capital Expenditures 29,975  659  1,950  —  32,584  1 Losses before income taxes for the BrandsMart segment during the three months ended June 30, 2022 was impacted by a one-time, non-cash charge for a fair value adjustment to the acquired merchandise inventories of $23.0 million. 2 The losses before income taxes for the Unallocated Corporate category during the three months ended June 30, 2022 was impacted by BrandsMart U.S.A. acquisition-related costs of $8.0 million, restructuring charges of $5.6 million and separation-related costs of $0.2 million. 3 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization. Six months ended June 30, 2023 (In Thousands) Aaron's Business BrandsMart Elimination of Intersegment Revenues Total Lease Revenues and Fees $ 727,546  $ —  $ —  $ 727,546  Retail Sales 14,933  287,934  (4,275) 298,592  Non-Retail Sales 46,735  —  —  46,735  Franchise Royalties and Fees 11,486  —  —  11,486  Other 374  —  —  374  Total Revenues $ 801,074  $ 287,934  $ (4,275) $ 1,084,733  Six months ended June 30, 2023 (In Thousands) Aaron's Business1 BrandsMart Unallocated Corporate2 Elimination Total Gross Profit $ 507,545  $ 70,704  $ —  $ (283) $ 577,966  Earnings (Losses) Before Income Taxes 66,699  195  (49,804) (196) 16,894  Depreciation and Amortization3 37,358  7,035  444  —  44,837  Capital Expenditures 33,658  5,209  2,698  —  41,565  1 The earnings before income taxes for the Aaron's Business during the six months ended June 30, 2023 includes a $3.8 million receipt from the settlement of a class action lawsuit related to alleged anti-competitive conduct by several manufacturers of cathode ray tubes. 2 The losses before income taxes for the Unallocated Corporate category during the six months ended June 30, 2023 was impacted by restructuring charges of $10.1 million, BrandsMart U.S.A. acquisition-related costs of $2.4 million, and separation-related costs of $0.1 million. 3 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization. Six months ended June 30, 2022 (In Thousands) Aaron's Business BrandsMart Elimination of Intersegment Revenues Total Lease Revenues and Fees $ 795,831  $ —  $ —  $ 795,831  Retail Sales 23,316  181,442  (1,303) 203,455  Non-Retail Sales 54,869  —  —  54,869  Franchise Royalties and Fees 11,910  —  —  11,910  Other 401  —  —  401  Total Revenues $ 886,327  $ 181,442  $ (1,303) $ 1,066,466  Six months ended June 30, 2022 (In Thousands) Aaron's Business BrandsMart1 Unallocated Corporate2 Elimination Total Gross Profit $ 555,558  $ 22,875  $ —  $ (339) $ 578,094  Earnings (Loss) Before Income Taxes 81,681  (15,919) (49,992) (339) 15,431  Depreciation and Amortization3 36,265  3,368  761  —  40,394  Capital Expenditures 53,235  659  3,793  —  57,687  1 Losses before income taxes for the BrandsMart segment during the six months ended June 30, 2022 were impacted by a one-time, non-cash charge for a fair value adjustment to the acquired merchandise inventories of $23.0 million. 2 Losses before income taxes for the Unallocated Corporate category during the six months ended June 30, 2022 were impacted by BrandsMart U.S.A. acquisition-related costs of $11.5 million, restructuring charges of $8.9 million and separation-related costs of $0.8 million. 3 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization.

v3.23.2

Basis and Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands	Jun. 30, 2023 USD ($) store	Apr. 01, 2022 USD ($)
Significant Accounting Policies [Line Items]
Approximate number of stores | store	1,260
Common stock conversion ratio	0.5
BrandsMart
Significant Accounting Policies [Line Items]
Percentage of interests acquired		100.00%
Cash Consideration to BrandsMart U.S.A. | $	$ 230,000	$ 230,000

v3.23.2

Basis and Summary of Significant Accounting Policies - Store Count by Ownership Type (Details)	Jun. 30, 2023 ft² store	Jun. 30, 2022 store
Significant Accounting Policies [Line Items]
Number of retail stores	1,266	1,304
Company-operated Aaron's Stores
Significant Accounting Policies [Line Items]
Number of retail stores	1,026	1,060
Area of real estate property | ft²	9,500
Company-operated Aaron's Stores | GenNext
Significant Accounting Policies [Line Items]
Number of retail stores	230	171
Company-operated Aaron's Stores | Legacy
Significant Accounting Policies [Line Items]
Number of retail stores	796
Company-operated Aaron's Stores | Store
Significant Accounting Policies [Line Items]
Number of retail stores	824
Company-operated Aaron's Stores | Store | GenNext
Significant Accounting Policies [Line Items]
Number of retail stores	175
Company-operated Aaron's Stores | Store | Legacy
Significant Accounting Policies [Line Items]
Number of retail stores	649
Company-operated Aaron's Stores | Hub
Significant Accounting Policies [Line Items]
Number of retail stores	101
Company-operated Aaron's Stores | Hub | GenNext
Significant Accounting Policies [Line Items]
Number of retail stores	48
Company-operated Aaron's Stores | Hub | Legacy
Significant Accounting Policies [Line Items]
Number of retail stores	53
Company-operated Aaron's Stores | Showroom
Significant Accounting Policies [Line Items]
Number of retail stores	101
Company-operated Aaron's Stores | Showroom | GenNext
Significant Accounting Policies [Line Items]
Number of retail stores	7
Company-operated Aaron's Stores | Showroom | Legacy
Significant Accounting Policies [Line Items]
Number of retail stores	94
Franchisee-operated Aaron's Stores
Significant Accounting Policies [Line Items]
Number of retail stores	230	234
BrandsMart Stores
Significant Accounting Policies [Line Items]
Number of retail stores	10	10
Area of real estate property | ft²	100,000

v3.23.2

Basis and Summary of Significant Accounting Policies - (Loss) Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Accounting Policies [Abstract]
Weighted Average Shares Outstanding (in shares)	30,993	30,827	30,894	30,944
Dilutive Effect of Share-Based Awards (in shares)	314	0	380	546
Weighted Average Shares Outstanding Assuming Dilution (in shares)	31,307	30,827	31,274	31,490

v3.23.2

Business and Summary of Significant Accounting Policies - (Loss) Earnings Per Share Narrative (Details) - shares shares in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023	Jun. 30, 2022
Accounting Policies [Abstract]
Anti-dilutive securities excluded from the computation of earnings per share assuming dilution (in shares)	1.2	1.2	0.7

v3.23.2

Basis and Summary of Significant Accounting Policies - Revenue Recognition (Details) - Sales And Lease Ownership	Jun. 30, 2023
Agreement One
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Lease agreement period	12 months
Agreement Two
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Lease agreement period	18 months
Agreement Three
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Lease agreement period	24 months

v3.23.2

Basis and Summary of Significant Accounting Policies - Advertising Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Accounting Policies [Abstract]
Advertising costs	$ 6.6	$ 12.6	$ 19.6	$ 23.3
Amount of cooperative advertising consideration netted against advertising expense	8.6	$ 9.4	16.1	$ 16.4
Prepaid advertising asset	$ 4.2		$ 4.2		$ 4.6

v3.23.2

Basis and Summary of Significant Accounting Policies - Accounts Receivable Net of Allowances (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net of allowances	$ 30,198	$ 38,191
Threshold period past due for write-off of lease receivable	60 days
Customers
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net of allowances	$ 7,385	9,721
Customer Lease Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Threshold period past due for write-off of lease receivable	90 days
Corporate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net of allowances	$ 17,051	20,597
Franchisee
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net of allowances	$ 5,762	$ 7,873

v3.23.2

Basis and Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	$ 8,895	$ 7,163
Accounts Written Off, net of Recoveries	(22,108)	(16,761)
Accounts Receivable Provision	21,111	17,484
Ending Balance	$ 7,898	$ 7,886

v3.23.2

Basis and Summary of Significant Accounting Policies - Components of the Accounts Receivable Provision (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Accounting Policies [Abstract]
Bad Debt Expense (Reversal)	$ 25	$ (203)
Provision for Returns and Uncollectible Renewal Payments	21,086	17,687
Accounts Receivable Provision	$ 21,111	$ 17,484

v3.23.2

Basis and Summary of Significant Accounting Policies - Lease Merchandise (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Significant Accounting Policies [Line Items]
Lease merchandise, net of accumulated depreciation and allowances	$ 636,596	$ 693,795
Manufacturing | Operating Segments
Significant Accounting Policies [Line Items]
Inventory, including raw materials and work-in-process	11,000	12,900
Merchandise on Lease, net of Accumulated Depreciation and Allowances
Significant Accounting Policies [Line Items]
Lease merchandise, net of accumulated depreciation and allowances	$ 408,314	446,923
Merchandise on Lease, net of Accumulated Depreciation and Allowances | Minimum
Significant Accounting Policies [Line Items]
Lease merchandise useful life	12 months
Merchandise on Lease, net of Accumulated Depreciation and Allowances | Maximum
Significant Accounting Policies [Line Items]
Lease merchandise useful life	24 months
Merchandise Not on Lease, net of Accumulated Depreciation and Allowances
Significant Accounting Policies [Line Items]
Lease merchandise useful life	36 months
Lease merchandise, net of accumulated depreciation and allowances	$ 228,282	$ 246,872

v3.23.2

Basis and Summary of Significant Accounting Policies - Allowance for Lease Merchandise Write-offs (Details) - Lease Merchandise - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Components of the allowance of leases merchandise write-offs:
Beginning Balance	$ 13,894	$ 12,339
Merchandise Written off, net of Recoveries	(39,181)	(43,140)
Provision for Write-offs	39,161	44,070
Ending Balance	$ 13,874	$ 13,269

v3.23.2

Basis and Summary of Significant Accounting Policies - Retail Related Inventory, Merchandise (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Merchandise Inventories, gross	$ 93,773	$ 96,945
Reserve for Merchandise Inventories	(921)	(981)
Merchandise Inventories, Net	$ 92,852	$ 95,964

v3.23.2

Basis and Summary of Significant Accounting Policies - Retail Related Inventory, Components of the Reserve for Merchandise Inventories (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Retail Related Inventory, Merchandise [Roll Forward]
Beginning Balance	$ 981
Merchandise Written off	0
Provision for Write-offs	(60)
Ending Balance	$ 921

v3.23.2

Business and Summary of Significant Accounting Policies - Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Apr. 01, 2022
Restructuring Cost and Reserve [Line Items]
Prepaid Expenses	$ 19,159	$ 20,218
Insurance Related Assets	31,505	25,103
Company-Owned Life Insurance	14,633	13,443
Assets Held for Sale	1,113	1,857
Deferred Tax Assets	23,686	16,277
Other Assets	20,741	19,538
Prepaid expenses and other assets	110,837	96,436
BrandsMart
Restructuring Cost and Reserve [Line Items]
Restricted cash	$ 1,600	$ 1,600	$ 2,500

v3.23.2

Basis and Summary of Significant Accounting Policies - Sale-Leaseback Transactions (Details) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2022 USD ($) store	Jun. 30, 2022 USD ($) store sale-leasebackTransaction	Jun. 30, 2023 USD ($) store
Lessee, Lease, Description [Line Items]
Number of retail stores | store	1,304	1,304	1,266
Sales leaseback transaction, sale price	$ 9.0	$ 9.0
Receivable from sale and leaseback transactions			$ 3.3
Sale and leaseback transactions
Lessee, Lease, Description [Line Items]
Sale leaseback transaction, gross proceeds		5.7
Sale and leaseback transactions | Other operating expense
Lessee, Lease, Description [Line Items]
Gain related to the sale and leaseback transaction	$ 1.9	$ 5.7
BrandsMart
Lessee, Lease, Description [Line Items]
Sale leaseback, number of properties | sale-leasebackTransaction		2
Number of retail stores | store			6
BrandsMart | Sale and leaseback transactions
Lessee, Lease, Description [Line Items]
Number of retail stores | store	5	5

v3.23.2

Basis and Summary of Significant Accounting Policies - Derivative Instruments (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023	Mar. 31, 2023
Debt Instrument [Line Items]
Derivative fixed interest rate			3.87%
Interest Rate Swap
Debt Instrument [Line Items]
Notional amount			$ 100.0
Net losses AOCI to interest expense	$ (0.2)	$ (0.2)
Interest Rate Swap | Designated as Hedging Instrument
Debt Instrument [Line Items]
Derivative liability	$ 1.0	$ 1.0

v3.23.2

Basis and Summary of Significant Accounting Policies - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Accounts Payable	$ 108,314	$ 106,966
Estimated Claims Liability Costs	60,790	58,549
Accrued Salaries and Benefits	34,779	33,932
Accrued Real Estate and Sales Taxes	23,390	24,030
Other Accrued Expenses and Liabilities	33,578	40,566
Accounts Payable and Accrued Liabilities	$ 260,851	$ 264,043

v3.23.2

Basis and Summary of Significant Accounting Policies - Goodwill Narrative (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2022 USD ($) reportingUnit	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Apr. 01, 2022 USD ($)
Goodwill [Line Items]
Number of reporting units | reportingUnit	3
Goodwill	$ 54,710	$ 55,750
BrandsMart
Goodwill [Line Items]
Goodwill		55,750	$ 55,800	$ 54,710
BrandsMart | BrandsMart Leasing
Goodwill [Line Items]
Goodwill	$ 26,517	$ 26,517	26,500
BrandsMart | BrandsMart
Goodwill [Line Items]
Goodwill			$ 29,200

v3.23.2

Basis and Summary of Significant Accounting Policies - Schedule Of Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
Goodwill [Roll Forward]
Goodwill, Beginning Balance	$ 54,710
Acquisitions	0
Acquisition Accounting Adjustments	1,040
Impairment Loss	0
Goodwill, Ending Balance	55,750	$ 55,750
Aaron's Business
Goodwill [Roll Forward]
Goodwill, Beginning Balance	0
Acquisitions	0
Acquisition Accounting Adjustments	0
Impairment Loss	0
Goodwill, Ending Balance	0	0
BrandsMart
Goodwill [Roll Forward]
Goodwill, Beginning Balance		55,800
Acquisition Accounting Adjustments		1,040
Goodwill, Ending Balance	55,750	55,750
BrandsMart | Reporting Units, Excluding Leasing
Goodwill [Roll Forward]
Goodwill, Beginning Balance	28,193
Acquisitions	0
Acquisition Accounting Adjustments	1,040
Impairment Loss	0
Goodwill, Ending Balance	29,233	29,233
BrandsMart | BrandsMart Leasing
Goodwill [Roll Forward]
Goodwill, Beginning Balance	26,517	26,500
Acquisitions	0
Acquisition Accounting Adjustments	0
Impairment Loss	0
Goodwill, Ending Balance	$ 26,517	$ 26,517

v3.23.2

Basis and Summary of Significant Accounting Policies - Acquisition Related Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Business Combination, Separately Recognized Transactions [Line Items]
Acquisition-related costs	$ 546	$ 8,033	$ 2,394	$ 11,497
BrandsMart
Business Combination, Separately Recognized Transactions [Line Items]
Acquisition-related costs	$ 500	$ 8,000	$ 2,400	$ 11,500

v3.23.2

Basis and Summary of Significant Accounting Policies - Related Party Transactions (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) store	Jun. 30, 2022 USD ($) store	Jun. 30, 2023 USD ($) store	Jun. 30, 2022 USD ($) store
Related Party Transaction [Line Items]
Number of retail stores | store	1,266	1,304	1,266	1,304
Real estate activities | $	$ 270,997	$ 302,602	$ 554,013	$ 557,367
Real estate activities, including rental payments, maintenance and taxes
Related Party Transaction [Line Items]
Real estate activities | $	$ 3,200		$ 6,500
BrandsMart
Related Party Transaction [Line Items]
Number of retail stores | store	6		6
Initial operating lease term	10 years		10 years
Renewal term	20 years		20 years
Number of operating leases | store			6
Annual rental payments operating lease | $			$ 10,000

v3.23.2

Basis and Summary of Significant Accounting Policies - Statements of Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						6 Months Ended
	Jun. 30, 2023		Mar. 31, 2023	Jun. 30, 2022		Mar. 31, 2022	Jun. 30, 2023		Jun. 30, 2022
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Treasury Stock Beginning Balance (in shares)			(5,480,353)				(5,480,353)
Beginning Balance	$ 703,903		$ 695,402	$ 730,908		$ 718,166	$ 695,402		$ 718,166
Cash Dividends	(3,874)		(3,966)	(3,541)		(3,584)
Stock-Based Compensation	2,913		2,874	3,224		3,611
Issuance of Shares under Equity Plans	60		(2,539)	860		(3,489)
Acquisition of Treasury Stock	(804)			(5,335)		(5,720)
Net Earnings (Losses)	6,517		12,798	(5,342)		21,532	19,315		16,190
Unrealized Gain on Fuel Hedge Derivative Instrument	1,685	[1]	(990)	85	[1]	154	695	[1]	239	[1]
Foreign Currency Translation Adjustment, net of tax	$ 180	[1]	324	(346)	[1]	238	$ 504	[1]	(108)	[1]
Treasury Stock Ending Balance (in shares)	(5,753,552)						(5,753,552)
Ending Balance	$ 710,580		$ 703,903	$ 720,513		$ 730,908	$ 710,580		$ 720,513
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Treasury Stock Beginning Balance (in shares)	(5,687,000)		(5,480,000)	(5,005,000)		(4,580,000)	(5,480,000)		(4,580,000)
Beginning Balance	$ (141,292)		$ (138,753)	$ (131,065)		$ (121,804)	$ (138,753)		$ (121,804)
Issuance of Shares under Equity Plans (in shares)			(207,000)	0		(163,000)
Issuance of Shares under Equity Plans			$ (2,539)	$ 0		$ (3,541)
Acquisition of Treasury Stock (in shares)	(66,000)			(255,000)		(262,000)
Acquisition of Treasury Stock	$ (804)			$ (5,335)		$ (5,720)
Treasury Stock Ending Balance (in shares)	(5,753,000)		(5,687,000)	(5,260,000)		(5,005,000)	(5,753,000)		(5,260,000)
Ending Balance	$ (142,096)		$ (141,292)	$ (136,400)		$ (131,065)	$ (142,096)		$ (136,400)
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	$ 18,298		$ 18,050	$ 17,984		$ 17,779	$ 18,050		$ 17,779
Beginning Balance (in shares)	36,596,000		36,100,000	35,969,000		35,559,000	36,100,000		35,559,000
Issuance of Shares under Equity Plans (in shares)	24,000		496,000	68,000		410,000
Issuance of Shares under Equity Plans	$ 12		$ 248	$ 35		$ 205
Ending Balance	$ 18,310		$ 18,298	$ 18,019		$ 17,984	$ 18,310		$ 18,019
Ending Balance (in shares)	36,620,000		36,596,000	36,037,000		35,969,000	36,620,000		36,037,000
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	$ 741,054		$ 738,428	$ 727,842		$ 724,384	$ 738,428		$ 724,384
Stock-Based Compensation	2,913		2,874	3,224		3,611
Issuance of Shares under Equity Plans	48		(248)	825		(153)
Ending Balance	744,015		741,054	731,891		727,842	744,015		731,891
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	87,905		79,073	116,494		98,546	79,073		98,546
Cash Dividends	(3,874)		(3,966)	(3,541)		(3,584)
Net Earnings (Losses)	6,517		12,798	(5,342)		21,532
Ending Balance	$ 90,548		$ 87,905	$ 107,611		$ 116,494	90,548		107,611
Dividends, per share (in dollars per share)	$ 0.125		$ 0.125	$ 0.11		$ 0.11
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance	$ (2,062)		$ (1,396)	$ (347)		$ (739)	(1,396)		(739)
Unrealized Gain on Fuel Hedge Derivative Instrument	1,685		(990)	85		154
Foreign Currency Translation Adjustment, net of tax	180		324	(346)		238
Ending Balance	$ (197)		$ (2,062)	$ (608)		$ (347)	$ (197)		$ (608)
[1] 1 The Unrealized Gain on Derivative Instruments is presented net of tax expense of $0.5 million and $0.2 million for the three and six months ended June 30, 2023, respectively, and the Foreign Currency Translation Adjustment is presented net of tax expense of $0.1 million and a tax benefit of $0.3 million for the three and six months ended June 30, 2023, respectively. The tax components of the prior year amounts are insignificant.

v3.23.2

Basis and Summary of Significant Accounting Policies - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	$ (1,396)	$ (739)
Other Comprehensive Income (Loss), net of Tax	1,199	131
Ending Balance	(197)	(608)
Derivative Instruments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	(17)	0
Other Comprehensive Income (Loss), net of Tax	695	239
Ending Balance	678	239
Foreign Currency
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	(1,379)	(739)
Other Comprehensive Income (Loss), net of Tax	504	(108)
Ending Balance	$ (875)	$ (847)

v3.23.2

Acquisitions - Narrative (Details) $ in Thousands			3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) store	Apr. 01, 2022 USD ($) store	Jun. 30, 2023 USD ($) store	Jun. 30, 2022 USD ($) store	Jun. 30, 2023 USD ($) store	Jun. 30, 2022 USD ($) store
Business Acquisition [Line Items]
Number of retail stores | store	1,266		1,266	1,304	1,266	1,304
Acquisition-related costs			$ 546	$ 8,033	$ 2,394	$ 11,497
BrandsMart
Business Acquisition [Line Items]
Number of retail stores | store		10
Cash consideration to BrandsMart U.S.A.	$ 230,000	$ 230,000
Revenue contributed by acquiree			143,800	181,400	287,900	181,400
Net earnings contributed by acquiree			1,100	(15,900)	200	(15,900)
Acquisition-related costs			$ 500	$ 8,000	$ 2,400	$ 11,500

v3.23.2

Acquisitions - BrandsMart Acquisition (Details) $ in Thousands			6 Months Ended	12 Months Ended
	Jun. 30, 2023 USD ($)	Apr. 01, 2022 USD ($) store	Jun. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)	Jun. 30, 2022 USD ($)
Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed
Goodwill	$ 55,750		$ 55,750	$ 55,750	$ 54,710
Acquisition Accounting Adjustments			1,040
BrandsMart
Business Acquisition [Line Items]
Cash Consideration to BrandsMart U.S.A.	230,000	$ 230,000
Measurement Period adjustments, cash consideration				0
Acquired Cash	15,952	15,952	15,952	15,952
Measurement Period adjustments, acquired cash				0
Estimated Excess Working Capital, net of Cash	35,599	35,599	35,599	35,599
Measurement Period adjustments, estimated excess working capital, net of Cash				0
Non-Cash Off-Market Lease Agreement	6,823	6,823	6,823	6,823
Measurement period adjustments non-cash off-market lease agreement				0
Aggregate Consideration Transferred	288,374	288,374
Measurement Period adjustments, consideration transferred				0
Measurement Period adjustments, total purchase consideration, net of cash acquired				0
Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed
Accounts Receivable	4,310	4,310	4,310	4,310
Measurement Period adjustments, accounts receivable				0
Merchandise Inventories	124,237	124,064	124,237	124,237
Measurement period adjustments, merchandise inventories				173
Property, Plant and Equipment	20,692	22,053	20,692	20,692
Measurement Period adjustments, property, plant and equipment				(1,361)
Operating Lease Right-of-Use Assets	160,210	160,210	160,210	160,210
Measurement Period adjustments, operating lease right-of-use assets				0
Other Intangibles	122,950	122,950	122,950	122,950
Measurement Period adjustments, intangibles				0
Prepaid Expenses and Other Assets	8,969	9,049	8,969	8,969
Measurement Period adjustments, prepaid expenses and other assets				(80)
Total Identifiable Assets Acquired	441,368	442,636	441,368	441,368
Measurement Period adjustments, total identifiable assets acquired				(1,268)
Accounts Payable and Accrued Expenses	23,290	25,340	23,290	23,290
Measurement Period adjustments, accounts payable and accrued expenses				(2,050)
Customer Deposits and Advance Payments	27,154	25,332	27,154	27,154
Measurement Period adjustments, customer deposits and advance payments				1,822
Operating Lease Liabilities	158,712	158,712	158,712	158,712
Measurement Period adjustments, operating lease liabilities				0
Debt	15,540	15,540	15,540	15,540
Measurement Period adjustments, debt				0
Total Liabilities Assumed	224,696	224,924	224,696	224,696
Measurement Period adjustments, total liabilities assumed				(228)
Net Assets Acquired	216,672	217,712	216,672	216,672
Measurement Period adjustments, net assets acquired				(1,040)
Goodwill	55,750	54,710	55,750	55,750		$ 55,800
Acquisition Accounting Adjustments				1,040
Total Estimated Fair Value of Net Assets Acquired	272,422	$ 272,422	272,422	272,422
Measurement Period adjustments, total estimated fair value of net assets acquired				0
Number of store locations | store		6
Initial operating lease term		10 years
Renewal term		20 years
Restricted cash	$ 1,600	$ 2,500	$ 1,600	$ 1,600	$ 1,600

v3.23.2

Acquisitions - Intangible Assets Acquired (Details) - BrandsMart $ in Thousands	Apr. 01, 2022 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, fair value	$ 122,950
Trade Names
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, fair value	$ 108,000
Weighted Average Life (in years)	20 years
Non-Compete Agreements
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, fair value	$ 250
Weighted Average Life (in years)	3 years
Customer List
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, fair value	$ 14,700
Weighted Average Life (in years)	4 years

v3.23.2

Acquisitions - Pro Forma Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Revenues, As Reported	$ 530,372		$ 610,384		$ 1,084,733	$ 1,066,466
(Losses) Earnings Before Income Taxes, As Reported	8,002		(13,474)		16,894	15,431
Net Earnings (Loss), As Reported	$ 6,517	$ 12,798	(5,342)	$ 21,532	$ 19,315	16,190
BrandsMart
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Revenues, As Reported			610,384			1,066,466
Revenues, Pro Forma Combined Results			610,384			1,239,237
(Losses) Earnings Before Income Taxes, As Reported			(13,474)			15,431
(Losses) Earnings Before Income Taxes, Pro Forma Combined Results			17,609			53,053
Net Earnings (Loss), As Reported			(5,342)			16,190
Net Earnings (Loss), Pro Forma Combined Results			$ 17,908			$ 44,068

v3.23.2

Fair Value Measurement - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring Basis - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred Compensation Liability	$ 0	$ 0
Level 1 | Interest Rate Swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest Rate Swap Asset (Liability)	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred Compensation Liability	(10,015)	(8,621)
Level 2 | Interest Rate Swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest Rate Swap Asset (Liability)	980	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred Compensation Liability	0	0
Level 3 | Interest Rate Swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest Rate Swap Asset (Liability)	$ 0	$ 0

v3.23.2

Fair Value Measurement - Narrative (Details) $ in Millions	Mar. 31, 2023 USD ($)
Interest Rate Swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional amount	$ 100.0

v3.23.2

Fair Value Measurement - Assets Measured At Fair Value on Nonrecurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Held for Sale	$ 1,113	$ 1,857
Level 1 | Fair Value, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Held for Sale	0	0
Level 2 | Fair Value, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Held for Sale	1,113	1,857
Level 3 | Fair Value, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets Held for Sale	$ 0	$ 0

v3.23.2

Indebtedness - Summary of Company's Credit Facilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Less: Current Maturities	$ 4,375	$ 23,450
Long-Term Debt	181,688	218,963
Credit Facility
Debt Instrument [Line Items]
Debt	186,063	242,413
Revolving Facility | Credit Facility
Debt Instrument [Line Items]
Debt	15,000	69,250
Revolving Facility | Credit Facility | Fixed-Rate Long-Term Debt
Debt Instrument [Line Items]
Unamortized debt issuance costs deferred	700	700
Revolving Facility | Credit Facility | Prepaid Expenses and Other Assets
Debt Instrument [Line Items]
Unamortized debt issuance costs deferred	2,500	2,900
Term Loan | Credit Facility
Debt Instrument [Line Items]
Debt	$ 171,063	$ 173,163

v3.23.2

Indebtedness - Narrative (Details) - USD ($)		24 Months Ended	36 Months Ended
	Apr. 01, 2022	Dec. 31, 2024	Dec. 31, 2027	Jun. 30, 2023	Feb. 23, 2023	Dec. 31, 2022	Mar. 31, 2022	Nov. 10, 2021	Nov. 09, 2020
Term Loan | Forecast
Debt Instrument [Line Items]
Percentage of original principal amount amortized		2.50%	5.00%
Swingline Loans on Customary Terms | Progressive Subsidiary
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 35,000,000
Franchise Loan Facility
Debt Instrument [Line Items]
Event of default, loan due In full, term	90 days
Debt term	364 days
Debt instrument, extension period	364 days
Debt instrument, covenant, maximum EBITDA ratio	2.75
Debt instrument, covenant, minimum fixed charge coverage ratio	1.75
Letter of Credit | Progressive Subsidiary
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 35,000,000
Letter of Credit | Term Loan
Debt Instrument [Line Items]
Long-Term debt				$ 19,000,000		$ 17,300,000
Credit Facility
Debt Instrument [Line Items]
Long-Term debt				186,063,000		242,413,000
Basis spread, base rate below SOFR	1.00%
Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.50%
Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	2.25%
Credit Facility | Term Loan
Debt Instrument [Line Items]
Long-Term debt				171,700,000		173,900,000
Credit Facility | Franchise Loan Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.50%
Credit Facility | Franchise Loan Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	2.25%
Credit Facility | Revolving Facility
Debt Instrument [Line Items]
Long-Term debt				$ 15,000,000		$ 69,250,000
Credit Facility | Revolving Facility | Minimum
Debt Instrument [Line Items]
Line of credit, unused capacity, commitment fee percentage	0.20%
Credit Facility | Revolving Facility | Maximum
Debt Instrument [Line Items]
Line of credit, unused capacity, commitment fee percentage	0.30%
Credit Facility | Revolving Facility | Previous Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity									$ 250,000,000
Credit Facility | Revolving Facility | Term Loan
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 175,000,000
Credit Facility | Revolving Facility | Revolving Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	375,000,000
Credit Facility | Revolving Facility | BrandsMart U.S.A. Revolving Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	117,000,000
Credit Facility | Revolving Facility | Franchise Loan Facility
Debt Instrument [Line Items]
Franchise loan facility	$ 12,500,000				$ 10,000,000		$ 15,000,000
Credit Facility | Revolving Facility | Previous Franchise Loan Facility
Debt Instrument [Line Items]
Franchise loan facility								$ 15,000,000

v3.23.2

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Revenues	$ 530,372	$ 610,384	$ 1,084,733	$ 1,066,466
Lease Revenues and Fees
Disaggregation of Revenue [Line Items]
Revenues	353,751	386,513	727,546	795,831
Lease Revenues and Fees | Canada
Disaggregation of Revenue [Line Items]
Revenues	4,300	4,800	8,700	9,700
Retail Sales
Disaggregation of Revenue [Line Items]
Revenues	148,046	190,848	298,592	203,455
Non-Retail Sales
Disaggregation of Revenue [Line Items]
Revenues	22,800	27,042	46,735	54,869
Franchise Royalties and Fees
Disaggregation of Revenue [Line Items]
Revenues	5,588	5,792	11,486	11,910
Other
Disaggregation of Revenue [Line Items]
Revenues	$ 187	$ 189	$ 374	$ 401

v3.23.2

Revenue Recognition - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) renewalOption	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Disaggregation of Revenue [Line Items]
Revenues	$ 530,372	$ 610,384	$ 1,084,733	$ 1,066,466
Return asset	2,400		2,400		$ 4,000
Allowance for sales returns	3,200		$ 3,200		$ 3,000
Franchise operations agreement, initial term			10 years
Franchise operations agreement, number of renewal options | renewalOption			1
Franchise operations agreement, renewal term			10 years
Leases
Disaggregation of Revenue [Line Items]
Revenues	6,200	7,000	$ 12,500	14,000
Franchise Royalties and Fees
Disaggregation of Revenue [Line Items]
Revenues	5,588	5,792	11,486	11,910
Franchise Royalties and Fees | Transferred over Time
Disaggregation of Revenue [Line Items]
Revenues	$ 4,400	$ 4,600	$ 9,200	$ 9,500
Sales and Lease Ownership and HomeSmart
Disaggregation of Revenue [Line Items]
Royalty payment rate			6.00%
Agreement One | Sales And Lease Ownership
Disaggregation of Revenue [Line Items]
Lease agreement period	12 months		12 months
Agreement Two | Sales And Lease Ownership
Disaggregation of Revenue [Line Items]
Lease agreement period	18 months		18 months
Agreement Three | Sales And Lease Ownership
Disaggregation of Revenue [Line Items]
Lease agreement period	24 months		24 months

v3.23.2

Commitments and Contingencies (Details) - USD ($)	Jun. 30, 2023	Feb. 23, 2023	Dec. 31, 2022	Apr. 01, 2022	Mar. 31, 2022
Other Commitments [Line Items]
Portion that company might be obligated to repay in the event franchisees defaulted	$ 4,500,000
Fair value of franchisee-related borrowings	1,000,000		$ 1,300,000
Loss contingency accrual	400,000		$ 2,700,000
Minimum
Other Commitments [Line Items]
Range of possible loss not accrued	0
Estimate of possible loss	0
Maximum
Other Commitments [Line Items]
Range of possible loss not accrued	500,000
Estimate of possible loss	$ 500,000
Revolving Facility | Franchise Loan Facility | Credit Facility
Other Commitments [Line Items]
Franchise loan facility		$ 10,000,000		$ 12,500,000	$ 15,000,000

v3.23.2

Restructuring - Narrative (Details) $ in Thousands	3 Months Ended			6 Months Ended		42 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2020	Jun. 30, 2023 USD ($) store	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) store
Restructuring Cost and Reserve [Line Items]
Restructuring expenses net	$ 4,835	$ 5,582		$ 10,124	$ 8,917
2022 Restructuring Program
Restructuring Cost and Reserve [Line Items]
Number of store closures, consolidations and relocations | store				29
Restructuring expenses net	1,600			$ 4,400
Incurred charges	16,000			16,000		$ 16,000
Real Estate Repositioning and Optimization Restructuring Program
Restructuring Cost and Reserve [Line Items]
Number of store closures, consolidations and relocations | store						232
Number of store closures | store						1
Restructuring expenses net	3,300			5,700
Incurred charges	$ 67,300			$ 67,300		$ 67,300
Expected number of store closures, consolidation, or relocation over remainder of year | store				30
Real Estate Repositioning and Optimization Restructuring Program | Minimum
Restructuring Cost and Reserve [Line Items]
Strategic plan, term			3 years
Real Estate Repositioning and Optimization Restructuring Program | Maximum
Restructuring Cost and Reserve [Line Items]
Strategic plan, term			4 years

v3.23.2

Restructuring - Summary of Restructuring Charges by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 4,835	$ 5,582	$ 10,124	$ 8,917
Right-of-Use Asset Impairment
Restructuring Cost and Reserve [Line Items]
Restructuring charges	861	3,158	1,635	4,336
Operating Lease Charges
Restructuring Cost and Reserve [Line Items]
Restructuring charges	2,712	922	4,620	2,364
Accrual	1,409		1,409		$ 2,200
Fixed Asset Impairment
Restructuring Cost and Reserve [Line Items]
Restructuring charges	58	1,206	180	1,451
Severance
Restructuring Cost and Reserve [Line Items]
Restructuring charges	(372)	0	1,830	418
Accrual	0		0		$ 695
Other Expenses
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1,576	266	1,859	380
Net Losses (Gain) on Sale of Store Properties and Related Assets
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 0	$ 30	$ 0	$ (32)

v3.23.2

Restructuring - Summary of Accruals of Restructuring Programs (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Severance
Restructuring Reserve [Roll Forward]
Balance at January 1, 2023	$ 695
Restructuring Charges (Reversals)	1,830
Payments	(2,525)
Balance at June 30, 2023	0
Operating Lease Charges
Restructuring Reserve [Roll Forward]
Balance at January 1, 2023	2,200
Restructuring Charges (Reversals)	1,409
Payments	(2,200)
Balance at June 30, 2023	1,409
Professional Advisory Fees
Restructuring Reserve [Roll Forward]
Balance at January 1, 2023	1,032
Restructuring Charges (Reversals)	1,440
Payments	(1,845)
Balance at June 30, 2023	$ 627

v3.23.2

Segments - Narrative (Details)	3 Months Ended	15 Months Ended
	Jun. 30, 2022 segment store	Jun. 30, 2023 store segment
Business Acquisition [Line Items]
Number of retail stores | store	1,304	1,266
BrandsMart
Business Acquisition [Line Items]
Number of operating segments | segment	1	2
Number of reportable segments | segment	1	2
Number of retail stores | store		10

v3.23.2

Segments Segments - Revenue by source and segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting Information [Line Items]
Revenues	$ 530,372	$ 610,384	$ 1,084,733	$ 1,066,466
Gross Profit	282,272	293,147	577,966	578,094
Earnings (Losses) Before Income Taxes	8,002	(13,474)	16,894	15,431
Depreciation and Amortization	22,267	22,245	44,837	40,394
Capital Expenditures	21,356	32,584	41,565	57,687
Restructuring charges	4,835	5,582	10,124	8,917
Acquisition-related costs	546	8,033	2,394	11,497
Separation costs	0	230	129	770
Receipt from settlement of class action lawsuit			3,800
Elimination of Intersegment Revenues
Segment Reporting Information [Line Items]
Revenues	(2,345)	(1,303)	(4,275)	(1,303)
Gross Profit	(136)	(339)	(283)	(339)
Earnings (Losses) Before Income Taxes	(88)	(339)	(196)	(339)
Depreciation and Amortization	0	0	0	0
Capital Expenditures	0	0	0	0
Unallocated Corporate
Segment Reporting Information [Line Items]
Gross Profit	0	0	0	0
Earnings (Losses) Before Income Taxes	(23,833)	(26,736)	(49,804)	(49,992)
Depreciation and Amortization	222	364	444	761
Capital Expenditures	1,434	1,950	2,698	3,793
Aaron's Business
Segment Reporting Information [Line Items]
Separation costs			100	800
Aaron's Business | Operating Segments
Segment Reporting Information [Line Items]
Revenues	388,941	430,245	801,074	886,327
Gross Profit	246,839	270,611	507,545	555,558
Earnings (Losses) Before Income Taxes	30,840	29,520	66,699	81,681
Depreciation and Amortization	18,655	18,513	37,358	36,265
Capital Expenditures	15,629	29,975	33,658	53,235
BrandsMart
Segment Reporting Information [Line Items]
Restructuring charges		5,600		8,900
Separation costs		200
BrandsMart | Operating Segments
Segment Reporting Information [Line Items]
Revenues	143,776	181,442	287,934	181,442
Gross Profit	35,569	22,875	70,704	22,875
Earnings (Losses) Before Income Taxes	1,083	(15,919)	195	(15,919)
Depreciation and Amortization	3,390	3,368	7,035	3,368
Capital Expenditures	4,293	659	5,209	659
Merchandise written off		23,000	23,000
BrandsMart
Segment Reporting Information [Line Items]
Revenues		610,384		1,066,466
Earnings (Losses) Before Income Taxes		(13,474)		15,431
Acquisition-related costs	500	8,000	2,400	11,500
Lease Revenues and Fees
Segment Reporting Information [Line Items]
Revenues	353,751	386,513	727,546	795,831
Lease Revenues and Fees | Elimination of Intersegment Revenues
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Lease Revenues and Fees | Aaron's Business | Operating Segments
Segment Reporting Information [Line Items]
Revenues	353,751	386,513	727,546	795,831
Lease Revenues and Fees | BrandsMart | Operating Segments
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Retail Sales
Segment Reporting Information [Line Items]
Revenues	148,046	190,848	298,592	203,455
Retail Sales | Elimination of Intersegment Revenues
Segment Reporting Information [Line Items]
Revenues	(2,345)	(1,303)	(4,275)	(1,303)
Retail Sales | Aaron's Business | Operating Segments
Segment Reporting Information [Line Items]
Revenues	6,615	10,709	14,933	23,316
Retail Sales | BrandsMart | Operating Segments
Segment Reporting Information [Line Items]
Revenues	143,776	181,442	287,934	181,442
Non-Retail Sales
Segment Reporting Information [Line Items]
Revenues	22,800	27,042	46,735	54,869
Non-Retail Sales | Elimination of Intersegment Revenues
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Non-Retail Sales | Aaron's Business | Operating Segments
Segment Reporting Information [Line Items]
Revenues	22,800	27,042	46,735	54,869
Non-Retail Sales | BrandsMart | Operating Segments
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Franchise Royalties and Fees
Segment Reporting Information [Line Items]
Revenues	5,588	5,792	11,486	11,910
Franchise Royalties and Fees | Elimination of Intersegment Revenues
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Franchise Royalties and Fees | Aaron's Business | Operating Segments
Segment Reporting Information [Line Items]
Revenues	5,588	5,792	11,486	11,910
Franchise Royalties and Fees | BrandsMart | Operating Segments
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Other
Segment Reporting Information [Line Items]
Revenues	187	189	374	401
Other | Elimination of Intersegment Revenues
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Other | Aaron's Business | Operating Segments
Segment Reporting Information [Line Items]
Revenues	187	189	374	401
Other | BrandsMart | Operating Segments
Segment Reporting Information [Line Items]
Revenues	$ 0	$ 0	$ 0	$ 0

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