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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