Other Charges (Notes)

3 Months Ended

Mar. 31, 2019

Restructuring and Related Activities [Abstract]

Store Consolidations. During the first three months of 2020, we closed 14 Rent-A-Center Business stores, resulting in pre-tax charges of $0.5 million in lease impairment charges, and $0.3 million in other miscellaneous shutdown and holding costs. During the first three months of 2019, we closed 28 Rent-A-Center Business stores, resulting in pre-tax charges of $0.5 million in lease impairment, $0.5 million in other miscellaneous shutdown and holding costs, and $0.3 million in disposal of fixed assets.

Cost Savings Initiatives. During 2018, we began the execution of multiple cost savings initiatives, including reductions in overhead and supply chain. In connection with these initiatives, we recorded pre-tax charges during the three months ended March 31, 2020 consisting of $0.3 million in lease impairment charges, and $0.2 million in other miscellaneous shutdown and holding costs. Costs incurred during the first three months of 2019 related to these initiatives included pre-tax charges of $4.4 million in lease impairment charges, $3.0 million in severance and other payroll-related costs, $1.1 million in other miscellaneous shutdown costs, and $0.2 million in disposal of fixed assets.

Activity with respect to other charges for the three months ended March 31, 2020 is summarized in the below table:


(in thousands)	Accrued Charges at December 31, 2019		Charges & Adjustments		Payments & Adjustments		Accrued Charges at March 31, 2020
Cash charges:
Labor costs⁽¹⁾	$	738	$	141	$	(56)	$	823
Lease obligation costs⁽²⁾	—		173		(173)		—

Other miscellaneous	—		673		(673)		—
Total cash charges	$	738	987		$	(902)	$	823
Non-cash charges:

Asset impairments⁽³⁾			886
Other⁽⁴⁾			(170)
Total other charges			$	1,703

⁽¹⁾ Includes payments made to furloughed employees in Puerto Rico in response to the COVID-19 pandemic.

⁽²⁾ Includes lease expense related to closed stores and idled vehicles due to jurisdictional ordinances in response to the COVID-19 pandemic.

⁽³⁾ Asset impairments primarily includes impairments of operating lease right-of-use assets and other property assets related to the closure of RTO stores and previously closed product service centers, as well as a write-down of capitalized software in the first three months of 2020.

⁽⁴⁾ Other primarily includes the receipt of insurance proceeds related to Hurricane Maria in 2017.