Aarons 2014 Annual Report Download - page 56

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46
Management Report on Internal Control over Financial Reporting
Management of Aaron’s, Inc. and subsidiaries (the “Company”) is responsible for establishing and maintaining adequate
internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934,
as amended. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with
accounting principles generally accepted in the United States of America.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.
The Company’s management assessed the effectiveness of the Company’s internal control over financial reporting as of
December 31, 2014. In making this assessment, the Company’s management used the criteria set forth by the Committee of
Sponsoring Organizations of the Treadway Commission (1992 framework) in Internal Control-Integrated Framework. Based
on its assessment using those criteria, management concluded that, as of December 31, 2014, the Company’s internal control
over financial reporting was effective.
On April 14, 2014, the Company acquired a 100% ownership interest in Progressive Finance Holdings, LLC (“Progressive”)
for merger consideration of $700 million, net of cash acquired. As permitted by Securities and Exchange Commission
guidance, the scope of management’s evaluation does not include Progressive’s internal controls over financial reporting.
Progressive represented 35% of the Company's consolidated total assets as of December 31, 2014 and 20% of the Company’s
consolidated total revenues for the year ended December 31, 2014.
The Company’s internal control over financial reporting as of December 31, 2014 has been audited by Ernst & Young LLP, an
independent registered public accounting firm, as stated in their report dated March 2, 2015, which expresses an unqualified
opinion on the effectiveness of the Company’s internal control over financial reporting as of December 31, 2014.