Aarons 2012 Annual Report Download - page 80

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70
Factors Used by Management to Identify the Reportable Segments
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.
Information on segments and a reconciliation to earnings before income taxes from continuing operations are as
follows:
Year Ended
December 31,
Year Ended
December 31,
Year Ended
December 31,
(In Thousands)
2012
2011
2010
Revenues From External Customers:
Sales and Lease Ownership
$ 2,088,894
$ 1,938,614
$ 1,803,601
HomeSmart
55,226
15,624
56
Franchise
66,655
63,255
59,112
Manufacturing
95,693
89,430
79,113
Other
9,122
8,096
15,132
Revenues of Reportable Segments
2,315,590
2,115,019
1,957,014
Elimination of Intersegment Revenues
(95,150)
(89,430)
(79,113)
Cash to Accrual Adjustments
2,148
(3,258)
(1,563)
Total Revenues from External Customers
$ 2,222,588
$ 2,022,331
$ 1,876,338
Earnings Before Income Taxes:
Sales and Lease Ownership
$ 243,531
$ 143,686
$ 159,417
HomeSmart
(6,962)
(7,283)
(318)
Franchise
52,672
49,577
45,935
Manufacturing
382
2,960
3,218
Other
(11,854)
818
(12,437)
Earnings Before Income Taxes for Reportable Segments
277,769
189,758
195,815
Elimination of Intersegment Profit
(393)
(2,960)
(3,218)
Cash to Accrual and Other Adjustments
(521)
(3,421)
(1,811)
Total Earnings Before Income Taxes
$ 276,855
$ 183,377
$ 190,786
Assets:
Sales and Lease Ownership
$ 1,421,812
$ 1,293,151
$ 1,248,785
HomeSmart
58,347
50,600
955
Franchise
53,820
56,131
55,789
Manufacturing1
24,787
21,691
22,312
Other
254,163
310,326
173,012
Total Assets
$ 1,812,929
$ 1,731,899
$ 1,500,853
1Includes inventory (principally raw materials) that has been classified within lease merchandise in the
consolidated balance sheets of $14.1 million, $11.2 million and $11.2 million as of December 31, 2012, 2011
and 2010, respectively.
Depreciation and Amortization:
Sales and Lease Ownership
$ 629,119
$ 588,036
$ 539,669
HomeSmart
20,482
5,933
21
Franchise
146
41
41
Manufacturing
4,430
1,294
2,958
Other
7,256
8,260
6,843
Total Depreciation and Amortization
$ 661,433
$ 603,564
$ 549,532
Interest Expense:
Sales and Lease Ownership
$ 5,531
$ 4,473
$ 2,937
HomeSmart
846
201
2
Franchise
-
-
-
Manufacturing
106
142
15
Other
(91)
(107)
142
Total Interest Expense
$ 6,392
$ 4,709
$ 3,096