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Other Charges and (Gains) (Notes)
 12 Months Ended
Dec. 31, 2021
Other Charges - Operating Expenses [Abstract]  
Other (Gains) and Charges [Text Block] Other Charges
Acima Holdings Acquisition. As described in Note B, on February 17, 2021, we completed the acquisition of Acima Holdings, a leading provider of virtual lease-to-own solutions. Included in the aggregate consideration issued to the former owners of Acima Holdings were 8,096,595 common shares, valued at $414.1 million, subject to 36-month vesting conditions under restricted stock agreements, which will be recognized over the vesting term as stock compensation expense. During the twelve months ended December 31, 2022 and 2021, we recognized approximately $143.2 million and $127.1 million in stock compensation expense related to these restricted stock agreements, respectively.
The fair value of assets acquired as part of the transaction included $520 million in intangible assets and $170 million in developed technology. During the twelve months ended December 31, 2022 and 2021, we recognized approximately $64.9 million and $101.7 million in amortization expense and $15.9 million and $13.2 million in incremental depreciation expense related to these assets, respectively.
During the twelve months ended December 31, 2022 and 2021 we recognized approximately $0.2 million and $17.7 million in transaction costs associated with the closing of the transaction, respectively.
During the twelve months ended December 31, 2021 we recognized approximately $10.3 million in post-acquisition integration costs, including $5.1 million in inventory losses, $3.7 million in employee severance, and $1.5 million in other integration costs, including reorganization advisory fees.
Activity with respect to Other charges for the years ended December 31, 2022 and 2021 is summarized in the below table:
(In thousands)Accrued Charges at December 31, 2020Charges & AdjustmentsPayments & Adjustments Accrued Charges at December 31, 2021Charges & AdjustmentsPayments & Adjustments Accrued Charges at December 31, 2022
Cash:
Acima Holdings transaction costs$5,005 $17,680 $(22,685)$— $187 $(187)$— 
Acima Holdings integration costs— 6,572 (6,572)— — — — 
Labor reduction costs(1)
344 3,751 (2,502)1,593 4,983 (4,374)2,202 
Other cash charges(2)
— 658 (658)— 406 (406)— 
Total cash charges$5,349 28,661 $(32,417)$1,593 5,576 $(4,967)$2,202 
Non-cash:
Acima Holdings restricted stock agreements(3)
127,060 143,210 
Depreciation and amortization of acquired assets(4)
114,959 80,792 
Asset impairments(5)
1,572 6,764 
Other(6)
17,661 (1,059)
Total other charges$289,913 $235,283 
(1) Represents charges incurred for employee severance.
(2) Represents shutdown and holding expenses related to store closures.
(3) Represents stock compensation expense related to common stock issued to Acima Holdings employees under restricted stock agreements as part of the acquisition proceeds subject to vesting restrictions, as described in Note B and Note O.
(4) Represents amortization of the total fair value of acquired intangible assets and incremental depreciation related to the fair value increase over net book value of acquired software assets in connection with the acquisition of Acima Holdings as described in Note B.
(5) Asset impairments primarily represent impairment of software assets 2022. Asset impairments in 2021 includes store damage related to Hurricane Ida.
(6) Includes $17.5 million in legal settlement reserves and $0.2 million in state sales tax assessment reserves for 2021. Amounts accrued for potential settlements do not represent our maximum loss exposure. The amount of any loss ultimately incurred in relation to matters for which an accrual has been established may be significantly different than the amounts accrued for such matters due to the inherent uncertainty in litigation, regulatory and similar adversarial proceedings.