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Correction of Immaterial Errors (Tables)
12 Months Ended
Dec. 31, 2014
Correction of Immaterial Errors [Abstract]  
Schedule of Error Corrections and Prior Period Adjustments
Due to the immaterial nature of the error corrections, we have recorded the cumulative effect of these adjustments of $6.5 million for periods prior to 2012 as a decrease in the previously reported January 1, 2012, retained earnings of $1,665.4 million, resulting in a revised January 1, 2012, retained earnings of $1,658.9 million. These adjustments also cumulatively impacted the following balance sheet line items as of December 31, 2013:
 
 
December 31, 2013
(In thousands)
 
Previously Reported
 
Adjustment
 
As Revised
Receivables
 
$
58,686

 
$
492

 
$
59,178

On rent rental merchandise
 
914,618

 
(1,142
)
 
913,476

Held for rent rental merchandise
 
210,450

 
272

 
210,722

Total assets
 
3,018,553

 
(378
)
 
3,018,175

Accounts payable - trade
 
120,166

 
272

 
120,438

Accrued liabilities
 
315,235

 
11,855

 
327,090

Deferred income taxes
 
323,326

 
(4,823
)
 
318,503

Total liabilities
 
1,675,002

 
7,304

 
1,682,306

Retained earnings
 
1,888,002

 
(7,682
)
 
1,880,320

Total equity
 
1,343,551

 
(7,682
)
 
1,335,869

The errors discussed above, adjusted for the related income tax expense impact, resulted in an understatement of net earnings of $0.5 million for the year ended December 31, 2013, and an overstatement of net earnings of $1.7 million for the year ended December 31, 2012, respectively, an overstatement of net earnings of $1.6 million for three-month period ended March 31, 2014, an understatement of net earnings of $0.1 million for three-month period ended June 30, 2014, and an understatement of net earnings of $0.6 million for the three-month period ended September 30, 2014, respectively, as detailed in the tables below. We will revise the quarters within 2014 when they are published in future filings.
 
 
Year Ended December 31, 2013
 
Year Ended December 31, 2012
(In thousands, except per share data)
 
Previously Reported
 
Adjustment
 
As Revised
 
Previously Reported
 
Adjustment
 
As Revised
Rentals and fees
 
$
2,698,395

 
$
(2,500
)
 
$
2,695,895

 
$
2,654,081

 
$
(156
)
 
$
2,653,925

Installment sales
 
72,705

 
(1,230
)
 
71,475

 
68,356

 
(1,285
)
 
67,071

Franchise merchandise sales
 
30,991

 
(6,435
)
 
24,556

 
38,427

 
(5,534
)
 
32,893

Total revenues
 
3,104,183

 
(10,165
)
 
3,094,018

 
3,082,646

 
(6,975
)
 
3,075,671

Cost of rentals and fees
 
683,221

 
(6,547
)
 
676,674

 
646,090

 
(3,703
)
 
642,387

Cost of installment sales
 
25,771

 
(1,230
)
 
24,541

 
24,572

 
(1,285
)
 
23,287

Franchise cost of merchandise sold
 
29,539

 
(6,435
)
 
23,104

 
36,848

 
(5,534
)
 
31,314

Total cost of revenues
 
954,737

 
(14,212
)
 
940,525

 
948,729

 
(10,522
)
 
938,207

Gross profit
 
2,149,446

 
4,047

 
2,153,493

 
2,133,917

 
3,547

 
2,137,464

Store labor
 
880,437

 
1,234

 
881,671

 
838,131

 
2,246

 
840,377

Other store expenses
 
787,239

 
1,973

 
789,212

 
760,827

 
3,943

 
764,770

Operating profit
 
246,169

 
840

 
247,009

 
315,671

 
(2,642
)
 
313,029

Earnings before income taxes
 
207,356

 
840

 
208,196

 
284,448

 
(2,642
)
 
281,806

Income tax expense
 
79,118

 
321

 
79,439

 
102,745

 
(957
)
 
101,788

Net earnings
 
128,238

 
519

 
128,757

 
181,703

 
(1,685
)
 
180,018

Basic earnings per common share
 
$
2.34

 
$
0.01

 
$
2.35

 
$
3.08

 
$
(0.02
)
 
$
3.06

Diluted earnings per common share
 
$
2.32

 
$
0.01

 
$
2.33

 
$
3.06

 
$
(0.03
)
 
$
3.03


 
 
Three Months Ended
 
 
March 31, 2014
(In thousands, except per share data)
 
Previously Reported
 
Adjustment
 
As Revised
Rentals and fees
 
$
694,168

 
$
(2,981
)
 
$
691,187

Installment sales
 
18,356

 
(296
)
 
18,060

Franchise merchandise sales
 
7,324

 
(1,996
)
 
5,328

Total revenues
 
833,746

 
(5,273
)
 
828,473

Cost of rentals and fees
 
177,870

 
(2,654
)
 
175,216

Cost of installment sales
 
6,382

 
(296
)
 
6,086

Franchise cost of merchandise sold
 
7,000

 
(1,996
)
 
5,004

Total cost of revenues
 
270,869

 
(4,946
)
 
265,923

Gross profit
 
562,877

 
(327
)
 
562,550

Store labor
 
225,678

 
260

 
225,938

Other store expenses
 
215,440

 
(282
)
 
215,158

Operating profit
 
59,763

 
(305
)
 
59,458

Finance charges from refinancing
 
1,946

 
2,267

 
4,213

Earnings before income taxes
 
46,652

 
(2,572
)
 
44,080

Income tax expense
 
17,795

 
(981
)
 
16,814

Net earnings
 
28,857

 
(1,591
)
 
27,266

Basic earnings per common share
 
$
0.55

 
$
(0.03
)
 
$
0.52

Diluted earnings per common share
 
$
0.54

 
$
(0.03
)
 
$
0.51

 
 
Three Months Ended June 30, 2014
 
Six Months Ended June 30, 2014
(In thousands, except per share data)
 
Previously Reported
 
Adjustment
 
As Revised
 
Previously Reported
 
Adjustment
 
As Revised
Rentals and fees
 
$
684,134

 
$
(2,385
)
 
$
681,749

 
$
1,378,302

 
$
(5,366
)
 
$
1,372,936

Installment sales
 
18,054

 
(283
)
 
17,771

 
36,410

 
(579
)
 
35,831

Franchise merchandise sales
 
5,963

 
(2,123
)
 
3,840

 
13,287

 
(4,119
)
 
9,168

Total revenues
 
773,217

 
(4,791
)
 
768,426

 
1,606,963

 
(10,064
)
 
1,596,899

Cost of rentals and fees
 
177,512

 
(2,912
)
 
174,600

 
355,382

 
(5,566
)
 
349,816

Cost of installment sales
 
6,358

 
(283
)
 
6,075

 
12,740

 
(579
)
 
12,161

Franchise cost of merchandise sold
 
5,737

 
(2,123
)
 
3,614

 
12,737

 
(4,119
)
 
8,618

Total cost of revenues
 
236,720

 
(5,318
)
 
231,402

 
507,589

 
(10,264
)
 
497,325

Gross profit
 
536,497

 
527

 
537,024

 
1,099,374

 
200

 
1,099,574

Store labor
 
222,083

 
186

 
222,269

 
447,761

 
446

 
448,207

Other store expenses
 
205,658

 
110

 
205,768

 
421,098

 
(172
)
 
420,926

Operating profit
 
40,159

 
231

 
40,390

 
99,922

 
(74
)
 
99,848

Finance charges from refinancing
 

 

 

 
1,946

 
2,267

 
4,213

Earnings before income taxes
 
28,608

 
231

 
28,839

 
75,260

 
(2,341
)
 
72,919

Income tax expense
 
11,075

 
83

 
11,158

 
28,870

 
(898
)
 
27,972

Net earnings
 
17,533

 
148

 
17,681

 
46,390

 
(1,443
)
 
44,947

Basic earnings per common share
 
$
0.33

 
$

 
$
0.33

 
$
0.88

 
$
(0.03
)
 
$
0.85

Diluted earnings per common share
 
$
0.33

 
$

 
$
0.33

 
$
0.87

 
$
(0.03
)
 
$
0.84

 
 
Three Months Ended September 30, 2014
 
Nine Months Ended September 30, 2014
(In thousands, except per share data)
 
Previously Reported
 
Adjustment
 
As Revised
 
Previously Reported
 
Adjustment
 
As Revised
Rentals and fees
 
$
678,190

 
$
(2,848
)
 
$
675,342

 
$
2,056,492

 
$
(8,214
)
 
$
2,048,278

Installment sales
 
18,089

 
(267
)
 
17,822

 
54,499

 
(846
)
 
53,653

Franchise merchandise sales
 
6,524

 
(2,047
)
 
4,477

 
19,811

 
(6,166
)
 
13,645

Total revenues
 
769,525

 
(5,162
)
 
764,363

 
2,376,488

 
(15,226
)
 
2,361,262

Cost of rentals and fees
 
177,208

 
(3,167
)
 
174,041

 
532,590

 
(8,733
)
 
523,857

Cost of installment sales
 
6,134

 
(267
)
 
5,867

 
18,874

 
(846
)
 
18,028

Franchise cost of merchandise sold
 
6,247

 
(2,047
)
 
4,200

 
18,984

 
(6,166
)
 
12,818

Total cost of revenues
 
230,086

 
(5,481
)
 
224,605

 
737,675

 
(15,745
)
 
721,930

Gross profit
 
539,439

 
319

 
539,758

 
1,638,813

 
519

 
1,639,332

Store labor
 
218,523

 
100

 
218,623

 
666,284

 
546

 
666,830

Other store expenses
 
209,302

 
(878
)
 
208,424

 
630,400

 
(1,050
)
 
629,350

Operating profit
 
44,823

 
1,097

 
45,920

 
144,745

 
1,023

 
145,768

Finance charges from refinancing
 

 

 

 
1,946

 
2,267

 
4,213

Earnings before income taxes
 
33,042

 
1,097

 
34,139

 
108,302

 
(1,244
)
 
107,058

Income tax expense
 
7,736

 
478

 
8,214

 
36,606

 
(420
)
 
36,186

Net earnings
 
25,306

 
619

 
25,925

 
71,696

 
(824
)
 
70,872

Basic earnings per common share
 
$
0.48

 
$
0.01

 
$
0.49

 
$
1.36

 
$
(0.02
)
 
$
1.34

Diluted earnings per common share
 
$
0.48

 
$
0.01

 
$
0.49

 
$
1.35

 
$
(0.02
)
 
$
1.33

The errors discussed above also resulted in changes to previously reported amounts in our consolidated statements of cash flows. The previously reported changes in operating assets and liabilities in the reconciliation of net income to cash provided by operating activities have been revised as detailed in the tables below. These errors had no impact on net cash provided by operating activities. We will revise the quarters within 2014 when they are published in future filings.
 
 
Year Ended December 31, 2013
 
Year Ended December 31, 2012
(In thousands, except per share data)
 
Previously Reported
 
Adjustment
 
As Revised
 
Previously Reported
 
Adjustment
 
As Revised
Net earnings
 
$
128,238

 
$
519

 
$
128,757

 
$
181,703

 
$
(1,685
)
 
$
180,018

Depreciation of rental merchandise
 
655,591

 
(3,430
)
 
652,161

 
622,261

 
(1,344
)
 
620,917

Deferred income taxes
 
23,699

 
321

 
24,020

 
4,386

 
(957
)
 
3,429

Rental merchandise
 
(770,879
)
 
3,199

 
(767,680
)
 
(686,247
)
 
2,444

 
(683,803
)
Receivables
 
(19,124
)
 
(124
)
 
(19,248
)
 
(13,370
)
 
(20
)
 
(13,390
)
Prepaid expenses and other assets
 
(9,798
)
 

 
(9,798
)
 
1,772

 

 
1,772

Accounts payable - trade
 
20,600

 
(1,227
)
 
19,373

 
(5,498
)
 
1,499

 
(3,999
)
Accrued liabilities
 
676

 
742

 
1,418

 
14,661

 
63

 
14,724

Net cash provided by operating activities
 
134,342

 

 
134,342

 
217,898

 

 
217,898

 
 
Three Months Ended March 31, 2014
(In thousands, except per share data)
 
Previously Reported
 
Adjustment
 
As Revised
Net earnings
 
$
28,857

 
$
(1,591
)
 
$
27,266

Depreciation of rental merchandise
 
169,843

 
(354
)
 
169,489

Finance charges from refinancing
 
1,946

 
(1,946
)
 

Deferred income taxes
 
(24,370
)
 
(980
)
 
(25,350
)
Rental merchandise
 
(135,407
)
 
(792
)
 
(136,199
)
Receivables
 
(2,849
)
 
114

 
(2,735
)
Prepaid expenses and other assets
 
(4,609
)
 
4,212

 
(397
)
Accounts payable - trade
 
2,368

 
1,009

 
3,377

Accrued liabilities
 
56,922

 
328

 
57,250

Net cash provided by operating activities
 
120,060

 

 
120,060

 
 
Six Months Ended June 30, 2014
 
Nine Months Ended September 30, 2014
(In thousands, except per share data)
 
Previously Reported
 
Adjustment
 
As Revised
 
Previously Reported
 
Adjustment
 
As Revised
Net earnings
 
$
46,390

 
$
(1,443
)
 
$
44,947

 
$
71,696

 
$
(824
)
 
$
70,872

Depreciation of rental merchandise
 
339,773

 
(736
)
 
339,037

 
509,596

 
(1,418
)
 
508,178

Finance charges from refinancing
 
1,946

 
(1,946
)
 

 
1,946

 
(1,946
)
 

Deferred income taxes
 
(51,204
)
 
(897
)
 
(52,101
)
 
(64,912
)
 
(418
)
 
(65,330
)
Rental merchandise
 
(313,324
)
 
11,603

 
(301,721
)
 
(515,166
)
 
(24,184
)
 
(539,350
)
Receivables
 
(7,039
)
 
(8
)
 
(7,047
)
 
(20,307
)
 
(38
)
 
(20,345
)
Prepaid expenses and other assets
 
270

 
(6,790
)
 
(6,520
)
 
(11,017
)
 
4,212

 
(6,805
)
Accounts payable - trade
 
(663
)
 
(272
)
 
(935
)
 
(3,407
)
 
26,634

 
23,227

Accrued liabilities
 
(2,943
)
 
489

 
(2,454
)
 
7,502

 
(2,018
)
 
5,484

Net cash provided by operating activities
 
68,961

 

 
68,961

 
63,263

 

 
63,263