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Property Held for Lease, Net of Accumulated Depreciation and Impairment
 9 Months Ended
Sep. 30, 2024
Leases [Abstract]  
PROPERTY HELD FOR LEASE, NET OF ACCUMULATED DEPRECIATION AND IMPAIRMENT PROPERTY HELD FOR LEASE, NET OF ACCUMULATED DEPRECIATION AND IMPAIRMENT
Property held for lease consists of furniture, mattresses, consumer electronics, appliances, and other durable goods offered for lease-purchase in the normal course of business. Such property is provided to consumers pursuant to a lease-purchase agreement with a minimum lease term; typically one week, two weeks, or one month. The renewal periods of the initial lease term of the agreement are typically 10, 12 or 18 months. Consumers may terminate a lease agreement at any time without penalty. The average consumer continues to lease the property for 8 months because the consumer either exercises the buyout
option (early purchase) or terminates the lease purchase agreement prior to the end of the renewal period. As a result, property held for lease is classified as a current asset in the condensed consolidated balance sheets.

Property held for lease is recorded at cost, excluding shipping costs, and is carried at net book value. Depreciation for property held for lease is determined using the income forecasting method and is included within cost of revenue. Under the income forecasting method, property held for lease is depreciated in the proportion of rents received to total rents expected to be received based on historical data, which is an activity-based method similar to the units of production method. The Company provides for impairment for the undepreciated balance of the property held for lease assuming no salvage value with a corresponding charge to cost of revenue. The provision for write-offs represents estimated losses based on historical results, which are incurred but not yet identified. Actual write-offs may differ from this estimate. The Company derecognizes the undepreciated net book value of property buyouts as buyouts occur with a corresponding charge to cost of revenue. The Company periodically evaluates fully depreciated property held for lease and when it is determined there is no future economic benefit, the cost of the assets is written off and the related accumulated depreciation is reversed.

Property held for lease, net of accumulated depreciation and impairment consists of the following:
September 30,December 31,
20242023
Property held for lease$281,521 $290,808 
Less: accumulated depreciation and impairment(226,698)(231,473)
Property held for lease, net$54,823 $59,335 
The table below details the cost of revenue for the three and nine months ended September 30, 2024 and 2023:

Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(As Restated)(As Restated)
Total depreciation expense related to property held for lease
$33,599 $31,195 $101,800 $91,655 
Net book value of property buyouts6,748 6,069 21,505 19,365 
Impairment charges5,453 4,895 17,021 15,494 
Other (1)
2,558 1,183 5,540 4,710 
Total cost of revenue$48,358 $43,342 $145,866 $131,224 
(1) Other consists mainly of payment processing fees, incentives and other lease related costs.