Other Charges - Operating Expenses

Acceptance Now Store Closures. During the first quarter of 2017, we closed 76 Acceptance Now manned locations and 9 Acceptance Now direct locations, and initiated a plan to close an additional 115 Acceptance Now locations, resulting in pre-tax charges of $5.7 million consisting primarily of rental merchandise losses, disposal of fixed assets, and other miscellaneous labor and shutdown costs. In addition, as a result of the plan to close certain Acceptance Now locations, we recorded a pre-tax impairment charge of $3.9 million to our intangible assets, related to a vendor relationship.

Corporate Cost Rationalization. During the first quarter of 2017, we executed a head count reduction that impacted approximately 6% of our field support center workforce. This resulted in pre-tax charges for severance and other payroll-related costs of approximately $2.5 million for the three months ended March 31, 2017.

Mexico Store Consolidation Plan. During the first quarter of 2016, we closed 14 stores in Mexico, resulting in pre-tax restructuring charges of $2.3 million in the Mexico segment for disposal of rental merchandise, fixed assets and leasehold improvements and other charges to decommission the stores.

Activity with respect to other charges for the three months ended March 31, 2017 is summarized in the below table:



(in thousands)	Accrued Charges at December 31, 2016		Charges & Adjustments			Payments			Accrued Charges at March 31, 2017
Cash charges:
Labor reduction costs	$	1,393	$	2,488		$	(1,440	)	$	2,441
Lease obligation costs	6,628		(182		)	(1,657		)	4,789
Other miscellaneous	—		161			(161		)	—
Total cash charges	$	8,021	2,467			$	(3,258	)	$	7,230
Non-cash charges:
Rental merchandise losses			5,520
Loss on sale of fixed assets			158
Impairment of intangible asset			3,896
Other charges⁽¹⁾			1,610
Total other charges			$	13,651

⁽¹⁾ Other charges include litigation claim settlements as well as costs, expenses and fees relating to responding to shareholder proposals.