QUARTERLY FINANCIAL INFORMATION (UNAUDITED)



(In Thousands, Except Per Share Data)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Year Ended December 31, 2017
Revenues	$	844,554	$	815,644	$	838,883	$	884,627
Gross Profit *	365,920		352,639		356,743		383,574
Earnings Before Income Taxes	82,623		56,995		39,221		60,738
Net Earnings	53,300		36,335		25,341		177,560
Earnings Per Share	0.75		0.51		0.36		2.51
Earnings Per Share Assuming Dilution	0.74		0.51		0.35		2.46

Year Ended December 31, 2016
Revenues	$	854,427	$	789,353	$	768,982	$	794,954
Gross Profit *	374,268		352,576		332,487		339,599
Earnings Before Income Taxes	79,728		61,124		45,282		32,288
Net Earnings	49,687		38,501		29,464		21,631
Earnings Per Share	0.68		0.53		0.41		0.30
Earnings Per Share Assuming Dilution	0.68		0.53		0.40		0.30

* Gross profit is the sum of lease revenues and fees, retail sales, non-retail sales, and interest and fees on loans receivable less retail cost of sales, non-retail cost of sales, depreciation of lease merchandise, provision for write-offs of lease merchandise, and provision for credit losses.

The comparability of the Company’s quarterly financial results during 2017 and 2016 was impacted by certain events, as described below on a pre-tax basis:


•	The first, second, third and fourth quarter of 2017 included restructuring charges of $0.3 million, $13.5 million, $0.8 million and $3.4 million, respectively, related to store contractual lease obligations, severance costs and impairment charges in connection with the Company's strategic decision to close Company-operated stores as discussed in Note 10 to these consolidated financial statements.

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The comparability of the Company's fourth quarter 2017 net earnings and earnings per share data were impacted by the Tax Act enactment on December 22, 2017. The estimated net impact of the Tax Act to income tax (benefit) expense during the fourth quarter of 2017 is a non-cash provisional income tax benefit of $137 million, which is an estimated $140 million remeasurement of net deferred tax liabilities at the lower U.S. corporate income tax rate provided by the Tax Act, partially offset by an estimated $3 million expense from the loss of the manufacturing deduction in 2017 and other impacts.

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The first quarter of 2016 included a gain of $11.1 million on the January 2016 sale of the Company’s former corporate office building, a loss of $4.6 million related to the write-down of the HomeSmart disposal group to its fair value less estimated costs to sell upon its classification as held for sale, and charges of $3.7 million related to the retirement of the Company’s former Chief Financial Officer.


•	The second quarter of 2016 included a loss of $1.0 million primarily consisting of impairment charges on certain assets related to the HomeSmart segment that have been sold or are held for sale.


•	The third and fourth quarter of 2016 included restructuring expenses of $4.7 million and $15.5 million, respectively. See Note 10 to these consolidated financial statements for further discussion of restructuring activities.