Aarons 2009 Annual Report Download - page 39

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Factors Used by Management to Identify the Reportable Segments
division has been classified as a discontinued operation and is
not included in our segment information as shown below.
In all segment disclosure periods presented, the Aaron’s Office
Furniture division was reclassified from the Sales and Lease
Ownership Segment to the Other Segment.
Information on segments and a reconciliation to earnings
before income taxes from continuing operations are as follows:
The Company’s reportable segments are based on the operations
of the Company that the chief operating decision maker regularly
reviews to analyze performance and allocate resources among
business units of the Company.
As discussed in Note N, the Company sold substantially all of
the assets of the Aaron’s Corporate Furnishings division during
the fourth quarter of 2008. For financial reporting purposes, this
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
(In Thousands) 2009 2008 2007
Revenues From External Customers:
Sales and Lease Ownership $1,685,841 $1,526,405 $1,325,088
Franchise 52,941 45,025 38,803
Other 19,320 25,781 32,374
Manufacturing 72,473 68,720 73,017
Revenues of Reportable Segments 1,830,575 1,665,931 1,469,282
Elimination of Intersegment Revenues (73,184) (69,314) (73,173)
Cash to Accrual Adjustments (4,604) (4,009) (1,170)
Total Revenues from External Customers from Continuing Operations $1,752,787 $1,592,608 $1,394,939
Earnings Before Income Taxes:
Sales and Lease Ownership $ 147,261 $ 113,513 $ 90,225
Franchise 39,335 32,933 28,651
Other (5,676) (60) 4,805
Manufacturing 3,329 1,350 (368)
Earnings Before Income Taxes for Reportable Segments 184,249 147,736 123,313
Elimination of Intersegment Profit (Loss) (3,341) (1,332) 497
Cash to Accrual and Other Adjustments (4,469) (6,824) (6,058)
Total Earnings from Continuing Operations Before Income Taxes $ 176,439 $ 139,580 $ 117,752
Assets:
Sales and Lease Ownership $1,110,675 $1,019,338 $ 897,828
Franchise 51,245 39,831 31,754
Other 144,024 152,934 80,206
Manufacturing 15,512 21,167 26,012
Total Assets from Continuing Operations $1,321,456 $1,233,270 $1,035,800
Depreciation and Amortization:
Sales and Lease Ownership $ 508,218 $ 461,182 $ 416,012
Franchise 192 350 162
Other 9,073 8,016 11,807
Manufacturing 1,888 1,845 846
Total Depreciation and Amortization from Continuing Operations $ 519,371 $ 471,393 $ 428,827
Interest Expense:
Sales and Lease Ownership $ 4,030 $ 7,621 $ 7,386
Franchise — — —
Other 265 193 197
Manufacturing 4 4 4
Total Interest Expense from Continuing Operations $ 4,299 $ 7,818 $ 7,587
Revenues From Canadian Operations (included in totals above):
Sales and Lease Ownership $ 3,781 $ 8,716 $ 3,746
Assets From Canadian Operations (included in totals above):
Sales and Lease Ownership $ 6,469 $ 7,985 $ 4,096
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