v3.24.2
SEGMENTS
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
SEGMENTS SEGMENTS
As of June 30, 2024, the Company has two reportable segments: Progressive Leasing and Vive.
Progressive Leasing partners with traditional and e-commerce retailers, primarily in the consumer residential electronics, furniture and appliance, jewelry, mobile phones and accessories, mattresses, and automobile electronics and accessories industries to offer a lease-purchase solution primarily for customers who may not have access to traditional credit-based financing options. It does so by offering leases with monthly, semi-monthly, bi-weekly and weekly payment frequencies.
Vive offers a variety of second-look financing programs originated through third-party federally insured banks to customers of participating merchants and, together with Progressive Leasing, allows the Company to provide POS partners with near-prime and below-prime customers one source for financing and leasing transactions.
Four is an innovative BNPL company that allows shoppers to pay for merchandise through four interest-free installments. Four is not a reportable segment for the three and six month periods ended June 30, 2024 and 2023 as its financial results are not material to the Company's condensed consolidated financial results.
Disaggregated Revenue
The following table presents revenue by source and by segment for the three months ended June 30, 2024 and 2023. The revenues within Other are primarily comprised of the operating activities of Four.
Three Months Ended June 30, 2024Three Months Ended June 30, 2023
(In Thousands)Progressive LeasingViveOtherTotalProgressive LeasingViveOtherTotal
Lease Revenues and Fees1
$570,516 $— $— $570,516 $574,839 $— $— $574,839 
Interest and Fees on Loans Receivable2
— 15,421 6,224 21,645 — 17,187 820 18,007 
Total $570,516 $15,421 $6,224 $592,161 $574,839 $17,187 $820 $592,846 
1 Revenue within the scope of ASC 842, Leases.
2 Revenue within the scope of ASC 310, Receivables. Also included within Interest and Fees on Loans Receivable for the three months ended June 30, 2024 is $2.3 million of subscription fee and interchange revenue within the scope of ASC 606, Revenue from Contracts with Customers.
The following table presents revenue by source and by segment for the six months ended June 30, 2024 and 2023:
Six Months Ended June 30, 2024Six Months Ended June 30, 2023
(In Thousands)Progressive LeasingViveOtherTotalProgressive LeasingViveOtherTotal
Lease Revenues and Fees1
$1,191,066 $— $— $1,191,066 $1,211,921 $— $— $1,211,921 
Interest and Fees on Loans Receivable2
— 31,471 11,494 42,965 — 34,340 1,725 36,065 
Total $1,191,066 $31,471 $11,494 $1,234,031 $1,211,921 $34,340 $1,725 $1,247,986 
1 Revenue within the scope of ASC 842, Leases.
2 Revenue within the scope of ASC 310, Receivables. Also included within Interest and Fees on Loans Receivable for the six months ended June 30, 2024 is $3.7 million of subscription fee and interchange revenue within the scope of ASC 606, Revenue from Contracts with Customers.
Measurement of Segment Profit or Loss and Segment Assets
The Company evaluates performance and allocates resources based on revenues and earnings (loss) before income tax expense. The Company determines earnings (loss) before income tax expense for all reportable segments in accordance with U.S. GAAP.
The Company incurred various corporate overhead expenses for certain executive management, finance, treasury, tax, audit, legal, risk management, and other overhead functions during the three and six months ended June 30, 2024 and 2023. Corporate overhead expenses incurred are primarily reflected as expenses of the Progressive Leasing segment and an immaterial amount was allocated to the Vive segment and Other. The allocation of corporate overhead costs to Progressive Leasing, Vive and Other is consistent with how the chief operating decision maker analyzed performance and allocated resources among the segments of the Company during the three and six months ended June 30, 2024 and 2023.
The following is a summary of earnings before income tax expense by segment. The loss before income taxes within Other is primarily comprised of the operating activities of certain other strategic initiatives.
Three Months Ended June 30,
(In Thousands)20242023
Earnings Before Income Tax Expense:
Progressive Leasing$53,966 $55,422 
Vive631 1,758 
Other(6,258)(5,166)
Total Earnings Before Income Tax Expense$48,339 $52,014 
Six Months Ended June 30,
(In Thousands)20242023
Earnings Before Income Tax Expense:
Progressive Leasing$89,419 $126,473 
Vive1,549 3,921 
Other(11,062)(10,793)
Total Earnings Before Income Tax Expense$79,906 $119,601 
During the three and six months ended June 30, 2024, the results of Progressive Leasing earnings before income tax expense were impacted by $0.3 million and $18.3 million, respectively, associated with the restructuring activities. These expenses were primarily comprised of early contract termination costs, operating lease right-of-use asset and other fixed asset impairment charges related to a reduction of office space, and employee severance costs.
During the three and six months ended June 30, 2023, the results of Progressive Leasing earnings before income tax expense were impacted by $1.0 million and $1.7 million, respectively, associated with the restructuring activities. These expenses were primarily comprised of employee severance costs.
The following is a summary of total assets by segment. The amount within Other is primarily comprised of the assets of Four.
(In Thousands)June 30, 2024December 31, 2023
Assets:
Progressive Leasing$1,273,834 $1,286,587 
Vive134,576 141,028 
Other52,297 63,640 
Total Assets$1,460,707 $1,491,255 
The following table presents additional segment profit or loss information for the three and six months ended June 30, 2024 and 2023:
Three Months Ended June 30,Six Months Ended June 30,
(In Thousands)2024202320242023
Depreciation and Amortization:
Progressive Leasing$5,660 $7,216 $12,891 $14,542 
Vive166 182 332 350 
Other671 518 1,292 1,003 
Total Depreciation and Amortization1
$6,497 $7,916 $14,515 $15,895 
Depreciation of Lease Merchandise:
Progressive Leasing$384,799 $384,874 $816,370 $820,313 
Vive— — — — 
Other— — — — 
Total Depreciation of Lease Merchandise$384,799 $384,874 $816,370 $820,313 
Interest Expense, Net:
Interest Expense:
Progressive Leasing$9,989 $9,506 $19,982 $18,913 
Vive— 166 — 457 
Other— — — — 
Intercompany Elimination
(316)— (633)— 
Interest Income:
Progressive Leasing$(2,334)$(2,389)$(3,760)$(3,596)
Vive— — — — 
Other(316)— (633)— 
Intercompany Elimination
316 — 633 — 
Total Interest Expense, Net
$7,339 $7,283 $15,589 $15,774 
Capital Expenditures2:
Progressive Leasing$1,250 $1,592 $2,655 $2,598 
Vive100 221 168 324 
Other553 897 1,176 1,466 
Total Capital Expenditures$1,903 $2,710 $3,999 $4,388 
1 Excludes depreciation of lease merchandise, which is not included in the chief operating decision maker's measure of depreciation and amortization.
2 Capital expenditures primarily consists of internal-use software, as well as computer hardware and furniture and equipment.