Aarons 2014 Annual Report Download - page 90

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80
(In Thousands) 2014 2013 2012
Depreciation and Amortization:
Sales and Lease Ownership $ 633,119 $ 639,951 $ 619,133
Progressive 346,343 — —
HomeSmart 22,407 23,977 20,482
Franchise 1,599 1,781 1,787
Manufacturing 1,649 2,081 4,430
Other 13,117 17,315 12,503
Total Depreciation and Amortization $ 1,018,234 $ 685,105 $ 658,335
Interest Expense:
Sales and Lease Ownership $ 7,834 $ 7,070 $ 7,589
Progressive 14,992 — —
HomeSmart 922 916 846
Franchise — — —
Manufacturing 50 80 106
Other (4,583)(2,453)(2,149)
Total Interest Expense $ 19,215 $ 5,613 $ 6,392
Capital Expenditures:
Sales and Lease Ownership $ 24,135 $ 30,831 $ 33,460
Progressive 1,625 — —
HomeSmart 1,020 994 4,121
Franchise — — —
Manufacturing 1,477 1,531 4,493
Other 19,308 24,789 22,999
Total Capital Expenditures $ 47,565 $ 58,145 $ 65,073
Revenues From Canadian Operations (included in totals above):
Sales and Lease Ownership $ 179 $ 300 $ 308
Assets From Canadian Operations (included in totals above):
Sales and Lease Ownership $ 776 $ 1,021 $ 1,391
Revenues in the Other segment are primarily attributable to (i) the RIMCO segment through the date of sale in January 2014 (ii)
leasing space to unrelated third parties in the corporate headquarters building, (iii) revenues of the Aaron’s Office Furniture
division through the date of sale in August 2012 and (iv) several minor unrelated activities. The pre-tax losses in the Other
segment are the result of the activity mentioned above, net of the portion of corporate overhead not allocated to the reportable
segments for management purposes.
In 2014, the results of the Company's operating segments were impacted by the following items:
• Sales and Lease Ownership earnings before income taxes included $4.8 million of restructuring charges related to the
Company's strategic decision to close 44 Company-operated stores.
• Other segment loss before income taxes included $13.7 million in financial and advisory costs related to addressing
strategic matters, including proxy contests, $4.3 million of restructuring charges in connection with the store closures
noted above, $9.1 million of charges associated with the retirement of both the Company's Chief Executive Officer and
Chief Operating Officer, $6.6 million in transaction costs related to the Progressive acquisition and $1.2 million of
regulatory income that reduced previously recognized regulatory expense upon the resolution of the regulatory
investigation by the California Attorney General.
In 2013, the results of the Company's operating segments were impacted by the following items:
• Other segment loss before income taxes included $28.4 million related to an accrual for loss contingencies for the
then-pending regulatory investigation by the California Attorney General and $4.9 million related to retirement
expense and a change in vacation policies.