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51
AARON’S, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended
December 31,
2014
Year Ended
December 31,
2013
Year Ended
December 31,
2012
(In Thousands)
OPERATING ACTIVITIES:
Net Earnings $ 78,233 $ 120,666 $ 173,043
Adjustments to Reconcile Net Earnings to Net Cash Provided by Operating
Activities:
Depreciation of Lease Merchandise 932,634 628,089 601,552
Other Depreciation and Amortization 85,600 57,016 56,783
Bad Debt Expense 99,283 35,894 31,842
Stock-Based Compensation 10,863 2,342 6,454
Deferred Income Taxes (7,157) (36,763) (23,241)
Other Changes, Net 2,214 3,996 1,201
Changes in Operating Assets and Liabilities, Net of Effects of Acquisitions
and Dispositions:
Additions to Lease Merchandise (1,465,501) (964,072) (1,162,703)
Book Value of Lease Merchandise Sold or Disposed 456,713 425,673 469,897
Accounts Receivable (110,269) (30,419) (18,528)
Prepaid Expenses and Other Assets (5,332) (1,349) (9,263)
Income Tax Receivable (117,894) 22,688 (22,379)
Accounts Payable and Accrued Expenses (12,788) 16,893 (4,635)
Accrued Litigation Expense (1,200) 28,400 (41,720)
Customer Deposits and Advance Payments 5,639 (617) 1,451
Cash (Used in) Provided by Operating Activities (48,962) 308,437 59,754
INVESTING ACTIVITIES:
Purchase of Investments — (74,845) (91,000)
Proceeds from Maturities and Calls of Investments 89,993 47,930 102,118
Additions to Property, Plant and Equipment (47,565) (58,145) (65,073)
Acquisitions of Businesses and Contracts (700,509) (10,898) (30,799)
Proceeds from Dispositions of Businesses and Contracts 16,525 2,163 1,999
Proceeds from Sale of Property, Plant, and Equipment 6,032 6,841 6,790
Cash Used by Investing Activities (635,524) (86,954) (75,965)
FINANCING ACTIVITIES:
Proceeds from Debt 904,956 2,598 16,258
Repayments of Debt (441,603) (4,954) (28,519)
Acquisition of Treasury Stock — (125,000) (34,131)
Dividends Paid (7,823) (3,875) (5,843)
Excess Tax Benefits From Stock-Based Compensation 1,392 1,381 5,967
Issuance of Stock Under Stock Option Plans 4,388 9,924 15,756
Other (4,366) — —
Cash Provided (Used) by Financing Activities 456,944 (119,926) (30,512)
(Decrease) Increase in Cash and Cash Equivalents (227,542) 101,557 (46,723)
Cash and Cash Equivalents at Beginning of Year 231,091 129,534 176,257
Cash and Cash Equivalents at End of Year $ 3,549 $ 231,091 $ 129,534
Cash Paid During the Year:
Interest $ 16,344 $ 5,614 $ 6,498
Income Taxes 187,709 54,027 145,370
The accompanying notes are an integral part of the Consolidated Financial Statements.