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Other Charges - Operating Expenses | 12 Months Ended
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Dec. 31, 2016
Restructuring and Related Activities [Abstract] |
Other Charges - Operating Expenses | Note M — Other Charges - Operating Expenses Core U.S. Store and Acceptance Now Consolidation Plan. During the second quarter of 2016, we closed 167 Core U.S. stores and 96 Acceptance Now locations, resulting in pre-tax restructuring charges of $20.1 million. Restructuring charges consisted of lease obligation costs, disposal of fixed assets, and other miscellaneous labor and shutdown costs. During 2015, we closed 65 Core U.S. stores resulting in pre-tax restructuring charges of $4.3 million. Restructuring charges consisted of lease obligations costs, accelerated depreciation and disposal of fixed assets and inventory and other miscellaneous operating costs. 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 in the Mexico segment for disposal of rental merchandise, disposal of fixed assets and leasehold improvements, and other miscellaneous costs. During 2015, we closed 34 stores in Mexico. These store closures resulted in pre-tax restructuring charges of $3.0 million in the Mexico segment for disposal of fixed assets and leasehold improvements, and other miscellaneous costs. Claims Settlement. In the fourth quarter of 2016, we recognized a gain of $2.2 million related to a litigation claims settlement. 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 and we incurred other charges to close existing warehouse space and terminate employees. The pre-tax charges for these items were approximately $2.8 million for the year ended December 31, 2015, reflected in the Core U.S. segment. Sale of Stores. During 2015, we incurred pre-tax losses of $7.2 million on the sale of 40 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 losses on the sale and closure of other Core U.S. stores of $1.1 million in 2015. Corporate Restructuring. During 2015, we eliminated certain departments and functions in our field support center as a part of our efforts to transform and modernize our operations company-wide. This resulted in pre-tax restructuring charges for severance and other payroll-related costs of approximately $2.0 million for the year ended December 31, 2015. Activity with respect to other charges for the year ended December 31, 2016 is summarized in the below table:
(In thousands) | Accrued Charges at December 31, 2014 |  | Charges & Adjustments |  | Payments |  | Accrued Charges at December 31, 2015 |  | Charges & Adjustments |  | Payments |  | Accrued Charges at December 31, 2016
Cash charges: |  |  |  |  |  |  |  |  |  |  |  |  |
Labor reduction costs | $ | 3,915 |  |  | $ | 3,020 |  |  | $ | (3,595 | ) |  | $ | 3,340 |  |  | $ | 1,380 |  |  | $ | (3,327 | ) |  | $ | 1,393 |
Lease obligation costs | 257 |  |  | 4,273 |  |  | (3,301 | ) |  | 1,229 |  |  | 15,198 |  |  | (9,799 | ) |  | 6,628 |
Other miscellaneous | — |  |  | 2,529 |  |  | (2,529 | ) |  | — |  |  | 1,455 |  |  | (1,455 | ) |  | — |
Total cash charges | $ | 4,172 |  |  | 9,822 |  |  | $ | (9,425 | ) |  | $ | 4,569 |  |  | 18,033 |  |  | $ | (14,581 | ) |  | $ | 8,021 |
Non-cash charges: |  |  |  |  |  |  |  |  |  |  |  |  |
Inventory losses |  |  | $ | 314 |  |  |  |  |  |  | $ | 287 |  |  |  |  |
Loss on the sale of fixed assets |  |  | 5,019 |  |  |  |  |  |  | 3,491 |  |  |  |  |
Other, net |  |  | 1,496 |  |  |  |  |  |  | 673 |  |  |  |  |
Total Restructuring charges |  |  | 16,651 |  |  |  |  |  |  | 22,484 |  |  |  |  |
Other charges and (gains) |  |  | 4,000 |  |  |  |  |  |  | (2,185 | ) |  |  |  |
Total other charges |  |  | $ | 20,651 |  |  |  |  |  |  | $ | 20,299 |  |  |  |  |

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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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