XML 21 R8.htm IDEA: XBRL DOCUMENT
v3.3.0.814

Correction of Immaterial Errors | 9 Months Ended
--- | ---
Sep. 30, 2015
Correction of Immaterial Errors [Abstract] |
Correction of Immaterial Errors | Correction of Immaterial Errors During the fourth quarter of 2014, we identified errors in accounting for revenues, cost of revenues and other store expenses resulting in an immaterial correction of errors in our previously issued consolidated financial statements. Each of these errors affected periods beginning prior to 2012 through December 31, 2014. In accordance with Staff Accounting Bulletin (SAB) No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, management evaluated the materiality of the errors from qualitative and quantitative perspectives, and concluded that the errors did not, individually or in the aggregate, result in a material misstatement of our previously issued consolidated financial statements. Due to the immaterial nature of the error corrections, the comparable 2014 amounts in the accompanying financial statements have been revised herein as discussed below. The errors discussed above, adjusted for the related income tax expense impact, resulted in an understatement of net earnings of $0.6 million for the three-month period ended September 30, 2014 and an overstatement of net earnings of $0.8 million for the nine-month period ended September 30, 2014, as detailed in the table below:
|  | 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 |  |  | $ | (0.01 | ) |  | $ | 1.34 |
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 table below. These errors had no impact on net cash provided by operating activities:
|  | Nine Months Ended September 30, 2014
(In thousands, except per share data) |  | Previously Reported |  | Adjustment |  | As Revised
Net earnings |  | $ | 71,696 |  |  | $ | (824 | ) |  | $ | 70,872 |
Depreciation of rental merchandise |  | 509,596 |  |  | (1,418 | ) |  | 508,178 |
Finance charges from refinancing |  | 1,946 |  |  | (1,946 | ) |  | — |
Deferred income taxes |  | (64,912 | ) |  | (418 | ) |  | (65,330 | )
Rental merchandise |  | (515,166 | ) |  | (24,184 | ) |  | (539,350 | )
Receivables |  | (20,307 | ) |  | (38 | ) |  | (20,345 | )
Prepaid expenses and other assets |  | (11,017 | ) |  | 4,212 |  |  | (6,805 | )
Accounts payable - trade |  | (3,407 | ) |  | 26,634 |  |  | 23,227 |
Accrued liabilities |  | 7,502 |  |  | (2,018 | ) |  | 5,484 |
Net cash provided by operating activities |  | 63,263 |  |  | — |  |  | 63,263 |

X
- Definition Correction of Immaterial Errors [Abstract] + References No definition available. + Details
Name: | rcii_CorrectionofImmaterialErrorsAbstract
Namespace Prefix: | rcii_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting accounting changes and error corrections. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all changes and error corrections reported in the Company's financial statements for the period. + 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=56949863&loc=d3e22644-107794 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 45 -Paragraph 23 -URI http://asc.fasb.org/extlink&oid=6368906&loc=d3e21914-107793 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=56949863&loc=d3e22595-107794 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=56949863&loc=d3e22499-107794 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 1.N.Q3) -URI http://asc.fasb.org/extlink&oid=26874127&loc=d3e30840-122693 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 1 -Section N + Details
Name: | us-gaap_AccountingChangesAndErrorCorrectionsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration