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Other Gains and Charges | 9 Months Ended
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Sep. 30, 2025
Unusual or Infrequent Items, or Both [Abstract] |
Other Gains and Charges | Other Gains and 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 were 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, 2024, we recognized approximately $4.9 million in stock compensation expense, related to these restricted stock agreements. See Note 11 for additional information. These restricted stock agreements were fully vested as of March 31, 2024. Stock-based compensation expense is reported under our Corporate segment. 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, 2025 and 2024, we recognized approximately $32.8 million and $34.5 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 during both the nine months ended September 30, 2025 and 2024. Depreciation expense for technology assets is reported under our Corporate segment. Brigit Acquisition. As described in Note 2, on January 31, 2025, we completed the acquisition of Brigit, a leading holistic financial health technology company. Included in the aggregate consideration issued to the former owners of Brigit were 1,313,331 shares, valued at $39.1 million, issued under restricted stock agreements and subject to vesting conditions, will be recognized as stock compensation expense over the vesting term, in accordance with ASC Topic 718, “Stock-based Compensation”. During the nine months ended September 30, 2025, we recognized approximately $15.6 million in stock compensation expense related to these restricted stock agreements, in addition to $10.6 million related to Brigit's Replacement Awards and other agreement compensation. Stock-based and other acquisition-related compensation expense associated with the Brigit acquisition is reported under our Corporate segment. See Note 2 and Note 11 for additional information. The fair value of assets acquired as part of the transaction included $152.3 million in intangible assets and $65.1 million in developed technology. During the nine months ended September 30, 2025, we recognized approximately $10.4 million in amortization expense related to acquired intangible assets. We also recognized approximately $6.2 million in incremental depreciation expense related to acquired technology assets during the nine months ended September 30, 2025. Depreciation expense for technology assets is reported under our Corporate segment. For the nine months ended September 30, 2025, we recognized approximately $6.7 million in transaction costs associated with the closing of the transaction. Legal Matters. As disclosed further in Note 12 in this Quarterly Report on Form 10-Q and as previously disclosed, we are currently party to a filed regulatory lawsuit with the New York Attorney General, as well as a multistate regulatory investigation by attorneys’ general offices from forty states, neither of which we believe are representative of historical regulatory matters that arise in the ordinary course of our business. These matters relate to lease-to-own transactions for our Acima subsidiary, which was acquired in 2021. We are also party to a certified class action brought on behalf of certain individuals who entered into rental purchase agreements and paid certain fees with the Company’s former Acceptance Now business in the state of California, and a patent infringement lawsuit. During the nine months ended September 30, 2025 and 2024, we recorded estimated legal accruals of $50.6 million and $8.2 million, respectively, based on the then-current status of our legal matters, including the foregoing matters, and incurred related litigation and defense expenses of $5.2 million and $3.5 million during the nine months ended September 30, 2025 and 2024, respectively. Legal accruals for litigation matters and related defense expenses are reported under our Corporate segment. We will continue to evaluate and modify our estimated legal accruals as appropriate in future periods based on future developments. Stock Award Letter Agreement. On April 3, 2024, we entered into a letter agreement with the Company’s former Chief Executive Officer as disclosed in our Current Report on Form 8-K dated as of April 5, 2024. The terms of the letter agreement included special provisions for his outstanding restricted stock awards vesting at various times through February 2027, which resulted in the acceleration of stock compensation expense for those awards in accordance with ASC Topic 718, “Stock-based Compensation”. Accelerated stock compensation expense recognized for the nine months ended September 30, 2025 and 2024 due to this letter agreement was approximately $1.6 million and $3.4 million, respectively. Stock-based compensation expense is reported under our Corporate segment. Refranchised Store Closures. During the three months ended September 30, 2025, certain refranchised stores for which we remained liable under the existing store and vehicle lease agreements were closed resulting in pre-tax lease impairment charges to write-off the remaining right-of-use asset of $11.6 million and $1.3 million in other miscellaneous shutdown and holding costs. Impairment charges and other expenses for these refranchised store closures are reported under our Rent-A-Center segment. Store Consolidations. During the first half of 2024, we closed 55 Rent-A-Center stores, resulting in pre-tax charges of $5.3 million in lease impairment charges, $0.6 million in disposal of fixed assets for the nine months ended September 30, 2024. Other miscellaneous shutdown and holding costs incurred were $0.5 million and $1.0 million for the nine months ended September 30, 2025 and 2024, respectively. 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. Deployment of the new system across our lease-to-own store network began in the second quarter of 2024 and was completed in the third quarter of 2024, at which time our existing point-of-sale software was 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 deployment timeline of our new point-of-sale system, which resulted in the recognition of additional depreciation expense of $6.1 million for the nine months ended September 30, 2024. Depreciation expense for internally developed software is reported under our Corporate segment. Activity with respect to other gains and charges is summarized in the below table:
| Three Months Ended September 30, |  |  |  | Nine Months Ended September 30,
(in thousands) | 2025 |  | 2024 |  |  |  | 2025 |  |  |  |  |  | 2024
Acima acquired assets depreciation and amortization | $ | 14,900 |  |  | $ | 14,901 |  |  |  |  | $ | 44,700 |  |  |  |  |  |  | $ | 46,447 |
Legal matters | 12,612 |  |  | 11,038 |  |  |  |  | 55,773 |  |  |  |  |  |  | 11,738 |
Asset impairments | 11,583 |  |  | (67) |  |  |  |  | 11,789 |  |  |  |  |  |  | 5,961 |
Brigit acquired assets depreciation and amortization | 6,216 |  |  | — |  |  |  |  | 16,576 |  |  |  |  |  |  | — |
Brigit equity consideration vesting | 5,101 |  |  | — |  |  |  |  | 15,565 |  |  |  |  |  |  | — |
Brigit replacement awards and other compensation | 4,495 |  |  | — |  |  |  |  | 10,567 |  |  |  |  |  |  | — |
Brigit transaction costs | 551 |  |  | — |  |  |  |  | 6,660 |  |  |  |  |  |  | — |
Accelerated stock compensation | — |  |  | 1,688 |  |  |  |  | 1,599 |  |  |  |  |  |  | 3,421 |
Accelerated software depreciation | — |  |  | — |  |  |  |  | — |  |  |  |  |  |  | 6,145 |
Acima equity consideration vesting | — |  |  | — |  |  |  |  | — |  |  |  |  |  |  | 4,893 |
Other(1) | (2,087) |  |  | 588 |  |  |  |  | (1,099) |  |  |  |  |  |  | 1,261 |
Total other gains and charges | $ | 53,371 |  |  | $ | 28,148 |  |  |  |  | $ | 162,130 |  |  |  |  |  |  | $ | 79,866 |
(1) Primarily represents interest income on tax refunds for prior years recognized during the three and nine months ended September 30, 2025. Also includes shutdown and holding costs related to store closures for three and nine months ended September 30, 2025 and 2024.

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