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Other Charges | 9 Months Ended
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Sep. 30, 2023
Restructuring and Related Activities [Abstract] |
Other Charges | Other Charges Acima Holdings Acquisition. 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, in accordance with ASC Topic 718, “Stock-based Compensation”. During the nine months ended September 30, 2023 and 2022, we recognized approximately $128.1 million and $111.5 million in stock compensation expense, respectively, related to these restricted stock agreements. See Note 11 for additional information. 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 nine months ended September 30, 2023 and 2022, we recognized approximately $42.8 million and $50.6 million in amortization expense, respectively, related to acquired intangible assets. We also recognized approximately $11.9 million in incremental depreciation expense related to acquired technology assets in both the nine months ended September 30, 2023 and 2022. During the nine months ended September 30, 2022, we recognized approximately $0.2 million in transaction costs associated with the closing of the transaction. Internally Developed Software Depreciation. During the third quarter of 2023, we completed initial development and began pilot testing a new internally developed point-of-sale system for our Rent-A-Center lease-to-own stores. We expect to fully deploy the new system across our lease-to-own store network during the first half of 2024, at which time our existing point-of-sale software will be retired. Therefore, in the third quarter of 2023, we accelerated the remaining useful lives of our existing point-of-sale software assets to align with the current deployment timeline of our new point-of-sale system, which resulted in the recognition of additional depreciation expense of $4.6 million for the three months ended September 30, 2023. Subsequent to September 30, 2023 we expect to recognize additional depreciation expense of $10.8 million over the remaining life of these assets. Activity with respect to Other charges for the nine months ended September 30, 2023 is summarized in the below table:
(in thousands) | Accrued Charges at December 31, 2022 |  | Charges & Adjustments |  | Payments & Adjustments |  | Accrued Charges at September 30, 2023
Cash charges: |  |  |  |  |  |  |
Labor reduction costs(1) | $ | 2,202 |  |  | $ | — |  |  | $ | (2,202) |  |  | $ | — |
Total cash charges | $ | 2,202 |  |  | — |  |  | $ | (2,202) |  |  | $ | — |
Non-cash charges: |  |  |  |  |  |  |
Acima Holdings restricted stock agreements(2) |  |  | 128,128 |  |  |  |  |
Depreciation and amortization of acquired assets(3) |  |  | 54,701 |  |  |  |  |
Accelerated software depreciation |  |  | 4,609 |  |  |  |  |
Other(4) |  |  | (3,025) |  |  |  |  |
Total other charges |  |  | $ | 184,413 |  |  |  |  |
(1) Represents charges incurred and payments related to employee severance. (2) 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 11. (3) 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 in 2021. (4) Primarily represents interest income on tax refunds for prior years received in 2023.

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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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