Business Context and Reporting Period
This Form 8-K Current Report was filed by Rent-A-Center, Inc. on November 23, 2009. The filing addresses a temporary suspension of trading under the company's employee benefit plans, specifically the Rent-A-Center, Inc. 401(k) Retirement Savings Plan (the "U.S. Plan").
Key Financial Metrics
The filing text does not provide a clear value for revenue, profit, cash flow, margins, debt, or liquidity. This report is limited to administrative changes regarding employee benefit plans and does not contain financial performance data.
Material Changes
The primary material change involves the spin-off of accounts for employees in Puerto Rico from the U.S. Plan to a new plan, the Rent-A-Center East, Inc. Retirement Savings Plan for Puerto Rico Employees (the "P.R. Plan"), effective January 1, 2010. This transition includes transferring funds to a new trustee and recordkeeper, Banco Popular.
Guidance, Outlook, and Risks
Blackout Period: A "Blackout Period" is scheduled from December 23, 2009, until the week of January 18, 2010. During this time, Puerto Rico employees will be unable to direct or diversify investments, obtain loans, or make distributions/withdrawals from either plan.
Management Commentary: The blackout is necessary to effect the account spin-off and fund transfer. Information regarding the blackout is available from the Benefits Department for two years following the blackout period.
Investor Verification Checklist
- Confirm the exact dates of the blackout period (December 23, 2009, to the week of January 18, 2010).
- Verify the scope of restrictions on Puerto Rico employees (no trading, loans, or withdrawals).
- Note the new recordkeeper for the Puerto Rico plan (Banco Popular).
- Understand that this filing contains no financial performance metrics or forward-looking business guidance.