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Correction of Immaterial Errors (Tables) | 12 Months Ended
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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 |

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- Definition Tabular disclosure of prior period adjustments to previously issued financial statements including (1) the effect of the correction on each financial statement line item and any per-share amounts affected for each prior period presented (2) the cumulative effect of the change on retained earnings or other appropriate components of equity or net assets in the statement of financial position, as of the beginning of the earliest period presented, and (3) the effect of the prior period adjustments (both gross and net of applicable income tax) on the net income of each prior period presented in the entity's annual report for the year in which the adjustments are made. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22644-107794 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22663-107794 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22658-107794 + Details
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