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Other Charges - Operating Expenses | 9 Months Ended
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Sep. 30, 2016
Restructuring Costs and Asset Impairment Charges [Abstract] |
Other Charges - Operating Expenses | Other Charges - Operating Expenses. U.S Core Store and Acceptance Now Consolidation Plan. During the second quarter of 2016, we closed 167 U.S. Core and 96 Acceptance Now locations, resulting in a pre-tax restructuring charges of $1.0 million and $19.9 million for the three and nine months ended September 30, 2016. Restructuring charges consisted of lease obligation costs, disposal of fixed assets, and other miscellaneous labor and shutdown costs. During the third quarter of 2015, we closed 65 Core U.S. stores and merged those accounts into existing Core U.S. stores, resulting in a pre-tax restructuring charge of $4.3 million. This charge included approximately $1.2 million of accelerated depreciation expense for fixed assets, leasehold improvements and write-off of merchandise inventory, $2.7 million in early lease termination costs and $0.3 million of other operating costs to decommission the stores. Mexico Store Consolidation Plan. During the first quarter of 2016, we closed 14 stores in Mexico, resulting in pre-tax restructuring charges of $2.3 million for the nine months ended September 30, 2016, in the Mexico segment, for disposal of rental merchandise, disposal of fixed assets and leasehold improvements, and other miscellaneous costs. During 2015, management closed 34 stores in Mexico. These store closures resulted in pre-tax restructuring charges of $3.1 million for the nine months ended September 30, 2015 in the Mexico segment, for disposal of fixed assets and leasehold improvements, and other miscellaneous costs. Sourcing and Distribution Network Startup Costs. As part of our transformational sourcing and distribution initiative, we entered into an agreement with a third-party logistics partner. As a result, we incurred one-time costs to set up new warehousing facilities and distribution routes in the second quarter of 2015 and we incurred other charges in the third quarter of 2015 to close existing warehouse space and terminate employees. The pre-tax charges for these items were approximately $1.2 million and $2.8 million for the three- and nine-month periods ended September 30, 2015, respectively, reflected in the Core U.S. segment. Sale of Stores. During the third quarter of 2015, we incurred pre-tax losses of $4.9 million on the sale of 22 Core U.S. stores to a franchisee and $0.3 million on the sale of 14 Core U.S. stores in Canada. We also incurred pre-tax losses of $0.3 million and $0.9 million for the three- and nine-month periods ended September 30, 2015, respectively, on the sale of 6 stores during the second quarter and 3 stores during the third quarter. Activity with respect to other charges for the nine months ended September 30, 2016 is summarized in the below table (in thousands):
| Accrued Charges at December 31, 2015 | Charges & Adjustments | Payments | Accrued Charges at September 30, 2016
Cash charges: |  |  |  |
Labor reduction costs | $ | 3,340 |  | $ | 1,367 |  | $ | (2,416 | ) | $ | 2,291 |
Lease obligation costs | 1,229 |  | 15,134 |  | (7,109 | ) | 9,254 |
Other miscellaneous | — |  | 1,281 |  | (1,281 | ) | — |
Subtotal | $ | 4,569 |  | 17,782 |  | $ | (10,806 | ) | $ | 11,545 |
Non-cash charges: |  |  |  |
Loss on the sale of fixed assets |  | 3,515 |  |  |
Inventory losses |  | 283 |  |  |
Other, net |  | 660 |  |  |
Total |  | $ | 22,240 |  |  |

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- References No definition available. + Details
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- Definition The entire disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References No definition available. + Details
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