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Segment Information | 12 Months Ended
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Dec. 31, 2023
Segment Information [Abstract] |
Segment Information | Segment Information The operating segments reported below are the segments for which separate financial information is available and for which segment results are evaluated by the chief operating decision makers. Our operating segments are organized based on factors including, but not limited to, type of business transactions, geographic location and store ownership. Within our operating segments, we offer merchandise for lease from certain basic product categories: such as furniture, including mattresses; tires; consumer electronics; appliances; tools; handbags; computers; smartphones; and accessories. We report financial operating performance under four operating segments. To better reflect our current strategic focus, our retail partner business operations are reported as the Acima segment, which includes our virtual and staffed business models; and our company-owned stores and e-commerce platform through rentacenter.com are reported as the Rent-A-Center segment. In addition, we report operating results for our Mexico and Franchising segments. Reportable segments and their respective operations are defined as follows. Our Rent-A-Center segment primarily operates lease-to-own stores in the United States and Puerto Rico whose customers enter into weekly, bi-weekly, semi-monthly or monthly rental purchase agreements, which renew automatically upon receipt of each payment. We retain the title to the merchandise during the term of the rental purchase agreement and ownership passes to the customer if the customer has continuously renewed the rental purchase agreement through the end of all required lease renewals or exercises a specified early purchase option. This segment also includes the 52 stores operating in two states that utilize a retail model which offers installment credit sales through a retail sale transaction. Segment assets include cash, receivables, rental merchandise, property assets and other intangible assets. Our Acima segment, which primarily operates in the United States and Puerto Rico, includes the operations of Acima Holdings acquired in February 2021 and certain locations previously operating under our Acceptance Now brand, generally offers the lease-to-own transaction to consumers who do not qualify for traditional financing. The Acima segment offers the lease-to-own transaction through our virtual solutions across e-commerce, digital, and mobile channels, and through staffed and unstaffed kiosks located within such retailer’s locations. Our Mexico segment consists of our company-owned lease-to-own stores in Mexico. The nature of this segment's operations and assets are the same as our Rent-A-Center segment. The stores in our Franchising segment use Rent-A-Center’s, ColorTyme’s or RimTyme’s trade names, service marks, trademarks and logos, and operate under distinctive operating procedures and standards. Franchising’s primary source of revenue is the sale of rental merchandise to its franchisees who, in turn, offer the merchandise to the general public for rent or purchase under a lease-to-own program. As franchisor, Franchising receives royalties of 2.0% to 6.0% of the franchisees' monthly gross revenue and initial fees for new locations. Segment assets include cash, trade receivables, property assets and intangible assets. Segment information as of and for the years ended December 31, 2023, 2022, and 2021 is as follows:
| Year Ended December 31,
(in thousands) | 2023 |  | 2022 |  | 2021
Revenues |  |  |  |  |
Rent-A-Center | $ | 1,864,123 |  |  | $ | 1,949,864 |  |  | $ | 2,037,849 |
Acima | 1,931,325 |  |  | 2,110,320 |  |  | 2,328,089 |
Mexico | 74,625 |  |  | 64,880 |  |  | 61,403 |
Franchising | 122,340 |  |  | 120,328 |  |  | 156,110 |
Total revenues | $ | 3,992,413 |  |  | $ | 4,245,392 |  |  | $ | 4,583,451 |
| Year Ended December 31,
(in thousands) | 2023 |  | 2022 |  | 2021
Gross profit |  |  |  |  |
Rent-A-Center | $ | 1,297,705 |  |  | $ | 1,372,863 |  |  | $ | 1,433,536 |
Acima | 644,447 |  |  | 632,244 |  |  | 728,852 |
Mexico | 52,869 |  |  | 45,812 |  |  | 43,117 |
Franchising | 27,237 |  |  | 28,613 |  |  | 29,507 |
Total gross profit | $ | 2,022,258 |  |  | $ | 2,079,532 |  |  | $ | 2,235,012 |
| Year Ended December 31,
(in thousands) | 2023 |  | 2022 |  | 2021
Operating profit |  |  |  |  |
Rent-A-Center | $ | 273,518 |  |  | $ | 334,525 |  |  | 448,905 |
Acima | 235,480 |  |  | 151,301 |  |  | 176,496 |
Mexico | 4,846 |  |  | 6,267 |  |  | 7,858 |
Franchising | 17,087 |  |  | 19,124 |  |  | 20,321 |
Total segments | 530,931 |  |  | 511,217 |  |  | 653,580 |
Corporate(1) | (368,066) |  |  | (362,679) |  |  | (373,041) |
Total operating profit | $ | 162,865 |  |  | $ | 148,538 |  |  | $ | 280,539 |
(1) Includes stock compensation expense of $137.5 million, $143.2 million and $127.1 million for the years ended December 31, 2023, 2022 and 2021, related to common stock issued to Acima Holdings employees under restricted stock agreements as part of the acquisition consideration subject to vesting restrictions as described in Note N.
| Year Ended December 31,
(in thousands) | 2023 |  | 2022 |  | 2021
Depreciation, amortization and write-down of intangibles |  |  |  |  |
Rent-A-Center | $ | 18,816 |  |  | $ | 20,526 |  |  | $ | 18,588 |
Acima(1) | 1,661 |  |  | 1,928 |  |  | 2,122 |
Mexico | 1,206 |  |  | 711 |  |  | 511 |
Franchising | 146 |  |  | 146 |  |  | 93 |
Total segments | 21,829 |  |  | 23,311 |  |  | 21,314 |
Corporate(2) | 29,492 |  |  | 29,768 |  |  | 33,516 |
Total depreciation, amortization and write-down of intangibles | $ | 51,321 |  |  | $ | 53,079 |  |  | $ | 54,830 |
(1) Excludes amortization expense of approximately $57.0 million, $64.9 million and $101.7 million for the years ended December 31, 2023, 2022 and 2021, respectively, recorded to Other charges in the Consolidated Statements of Operations, related to intangible assets acquired upon closing of the Acima Holdings acquisition. See Note N for additional information. (2) Excludes depreciation expense of approximately $15.9 million for both the years ended December 31, 2023 and 2022 and $13.2 million for the year ended December 31, 2021, recorded to Other charges in the Consolidated Statements of Operations, related to software acquired upon closing of the Acima Holdings acquisition and accelerated software depreciation. See Note N for additional information.
| Year Ended December 31,
(in thousands) | 2023 |  | 2022 |  | 2021
Capital expenditures |  |  |  |  |
Rent-A-Center | $ | 22,923 |  |  | $ | 36,682 |  |  | $ | 23,139 |
Acima | 512 |  |  | 244 |  |  | 1,045 |
Mexico | 2,153 |  |  | 1,590 |  |  | 1,032 |
Franchising | 1 |  |  | 332 |  |  | — |
Total segments | 25,589 |  |  | 38,848 |  |  | 25,216 |
Corporate | 27,813 |  |  | 22,539 |  |  | 37,234 |
Total capital expenditures | $ | 53,402 |  |  | $ | 61,387 |  |  | $ | 62,450 |
| December 31,
(in thousands) | 2023 |  | 2022 |  |
On rent rental merchandise, net |  |  |  |  |
Rent-A-Center | $ | 478,774 |  |  | $ | 465,095 |  |  |
Acima | 606,912 |  |  | 503,795 |  |  |
Mexico | 24,210 |  |  | 20,979 |  |  |
Total on rent rental merchandise, net | $ | 1,109,896 |  |  | $ | 989,869 |  |  |
| December 31,
(in thousands) | 2023 |  | 2022 |  |
Held for rent rental merchandise, net |  |  |  |  |
Rent-A-Center | $ | 112,129 |  |  | $ | 124,117 |  |  |
Acima | 498 |  |  | 373 |  |  |
Mexico | 11,540 |  |  | 10,469 |  |  |
Total held for rent rental merchandise, net | $ | 124,167 |  |  | $ | 134,959 |  |  |
| December 31,
(in thousands) | 2023 |  | 2022 |  |
Assets by segment |  |  |  |  |
Rent-A-Center | $ | 1,061,107 |  |  | $ | 1,067,875 |  |  |
Acima | 1,221,845 |  |  | 1,198,879 |  |  |
Mexico | 57,347 |  |  | 51,225 |  |  |
Franchising | 18,023 |  |  | 18,194 |  |  |
Total segments | 2,358,322 |  |  | 2,336,173 |  |  |
Corporate | 363,108 |  |  | 427,446 |  |  |
Total assets | $ | 2,721,430 |  |  | $ | 2,763,619 |  |  |
| December 31,
(in thousands) | 2023 |  | 2022 |  |
Assets by country |  |  |  |  |
United States | $ | 2,664,083 |  |  | $ | 2,712,394 |  |  |
Mexico | 57,347 |  |  | 51,225 |  |  |
Total assets | $ | 2,721,430 |  |  | $ | 2,763,619 |  |  |
| Year Ended December 31,
(in thousands) | 2023 |  | 2022 |  | 2021
Rentals and fees by inventory category |  |  |  |  |
Furniture and accessories | $ | 1,179,919 |  |  | $ | 1,323,437 |  |  | $ | 1,542,003 |
Consumer electronics | 486,571 |  |  | 482,959 |  |  | 435,004 |
Appliances | 404,241 |  |  | 439,309 |  |  | 426,316 |
Wheels and tires | 341,174 |  |  | 308,618 |  |  | 280,132 |
Jewelry | 228,081 |  |  | 194,123 |  |  | 146,477 |
Computers | 116,971 |  |  | 129,577 |  |  | 155,313 |
Smartphones | 64,246 |  |  | 52,803 |  |  | 61,058 |
Other products and services | 440,475 |  |  | 444,627 |  |  | 476,150 |
Total rentals and fees | $ | 3,261,678 |  |  | $ | 3,375,453 |  |  | $ | 3,522,453 |
| Year Ended December 31,
(in thousands) | 2023 |  | 2022 |  | 2021
Revenue by country |  |  |  |  |
United States | $ | 3,917,788 |  |  | $ | 4,180,512 |  |  | $ | 4,522,048 |
Mexico | 74,625 |  |  | 64,880 |  |  | 61,403 |
Total revenues | $ | 3,992,413 |  |  | $ | 4,245,392 |  |  | $ | 4,583,451 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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