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Other Charges and (Gains) (Notes) | 9 Months Ended
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Sep. 30, 2019
Restructuring and Related Activities [Abstract] |
Other Charges and (Gains) | Other Charges and (Gains) Cost Savings Initiatives. During 2018, we began execution of multiple cost savings initiatives, including reductions in overhead and supply chain, resulting in pre-tax charges during the first nine months of 2019 consisting of $4.7 million in lease impairment charges, $2.8 million in severance and other payroll-related costs, $2.2 million in other miscellaneous shutdown and holding costs, and $0.4 million in disposal of fixed assets. Costs incurred during the first nine months of 2018 related to these initiatives included pre-tax charges of $6.8 million in contract termination fees, $7.0 million in severance and other payroll-related costs, $1.9 million in legal and advisory fees, $1.1 million in other miscellaneous shutdown costs, $0.9 million in lease obligation costs, $0.4 million related to the write-down of capitalized software, and $0.1 million in disposal of fixed assets. Store Consolidation Plan. During the first nine months of 2019, we closed 83 Core U.S. stores, resulting in pre-tax charges of $3.1 million in lease impairment charges, $1.7 million in other miscellaneous shutdown and holding costs, $0.8 million in disposal of fixed assets, and $0.4 million in severance and other payroll-related costs. During the first nine months of 2018, we closed 129 Core U.S. stores and 9 locations in Mexico, resulting in pre-tax charges of $10.5 million, consisting of $7.9 million in lease obligation costs, $1.5 million in disposal of fixed assets, $0.9 million in other miscellaneous shutdown and holding costs, and $0.2 million in severance and other payroll-related costs. Vintage Settlement. On April 22, 2019, we agreed to settle (the "Vintage Settlement") all litigation with Vintage Rodeo Parent, LLC, Vintage Rodeo Acquisition, Inc., Vintage Capital Management, LLC (collectively, "Vintage Capital") and B. Riley Financial, Inc. ("B. Riley") relating to our termination of the Agreement and Plan of Merger (the "Merger Agreement") among Vintage Rodeo Parent, LLC, Vintage Rodeo Acquisition, Inc. and Rent-A-Center, Inc. In the Vintage Settlement, we received a payment of $92.5 million in cash in May 2019, of which we retained net pre-tax proceeds of approximately $80 million following payment of all remaining costs, fees and expenses relating to the termination (the "Vintage Settlement Proceeds"). The Vintage Settlement was recorded as a pre-tax gain upon receipt. Merchants Preferred Acquisition. On August 13, 2019, we completed the previously announced acquisition of substantially all of the assets of Merchants Preferred, a nationwide virtual rent-to-own provider. In connection with this acquisition, we recorded approximately $1.1 million in acquisition-related expenses during the nine months ended September 30, 2019 including expenses related to legal, professional, and banking transaction fees. Write-down of Capitalized Software. During the first nine months of 2018, we discontinued certain IT software projects and as a result incurred pre-tax charges of $1.9 million, related to the write-down of capitalized assets. Activity with respect to other charges and (gains) for the nine months ended September 30, 2019 is summarized in the below table:
(in thousands) | Accrued Charges at December 31, 2018 |  | Charges & Adjustments |  | Payments & Adjustments |  | Accrued Charges at September 30, 2019
Cash charges: |  |  |  |  |  |  |
Labor reduction costs | $ | 7,623 |  |  | $ | 3,160 |  |  | $ | (9,356 | ) |  | $ | 1,427 |
Lease obligation costs(1) | 4,882 |  |  | — |  |  | (4,882 | ) |  | — |
Other miscellaneous | — |  |  | 3,914 |  |  | (3,914 | ) |  | — |
Total cash charges | $ | 12,505 |  |  | 7,074 |  |  | $ | (18,152 | ) |  | $ | 1,427 |
Non-cash charges: |  |  |  |  |  |  |
Asset impairments(2) |  |  | 9,091 |  |  |  |  |
Other(3) |  |  | (57,473 | ) |  |  |  |
Total other gains |  |  | $ | (41,308 | ) |  |  |  |
(1) Upon adoption of ASU 2016-02, previously accrued lease obligation costs related to discontinued operations were eliminated and are now reflected as an adjustment to our operating lease right-of-use assets in our condensed consolidated balance sheet. (2) Includes impairments of operating lease right-of-use assets and other property assets related to the closure of RTO stores and our product service centers in the first nine months of 2019. (3) Other primarily includes the Vintage Settlement Proceeds and insurance proceeds related to the 2017 hurricanes, offset by the Blair class action settlement (refer to Note 13 for additional details), incremental legal and professional fees related to the termination of the Merger Agreement and the Merchants Preferred acquisition, and state tax audit assessments.

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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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