Other Charges (Notes)

3 Months Ended

Mar. 31, 2021

Restructuring and Related Activities [Abstract]

Other Charges

Other ChargesAcima Holdings Acquisition. As described in Note 2, 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 was 8,096,595 of common shares, valued at $414.1 million, subject to 36-month vesting conditions under restricted stock agreements, which will be recognized over the vesting term as stock compensation expense. During the three months ended March 31, 2021, we recognized approximately $15.9 million in stock compensation expense related to these restricted stock agreements.

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 three months ended March 31, 2021, we recognized approximately $1.3 million in depreciation expense and approximately $14.0 million in amortization expense related to these assets.

Furthermore, during the three months ended March 31, 2021 we recognized approximately $16.4 million in transaction costs associated with the closing of the transaction, and approximately $3.2 million in post-acquisition integration costs, including $2.8 million in employee severance and $0.4 million in reorganization advisory fees.

Activity with respect to Other charges for the three months ended March 31, 2021 is summarized in the below table:

(in thousands)	Accrued Charges at December 31, 2020		Charges & Adjustments		Payments & Adjustments		Accrued Charges at March 31, 2021
Cash charges:
Acima Holdings transaction costs	$	5,005	$	16,406	$	(20,893)	$	518
Acima Holdings integration costs	—		3,244		(447)		2,797
Other cash charges(1)	344		197		(541)		—
Total cash charges	$	5,349	19,847		$	(21,881)	$	3,315
Non-cash charges:
Depreciation and amortization of acquired assets(2)			15,258
Acima Holdings employees stock agreements(3)			15,882
Asset impairments(4)			132
Total other charges			$	51,119

(1) Represents employee severance, shutdown and holding expenses related to store closures.

(2) Represents depreciation recorded on the incremental fair value of acquired software and amortization of the fair value of intangible assets acquired in connection with the acquisition of Acima Holdings as described Note 2.

(3) Represents stock compensation expense recognized in the first quarter of 2021, related to common shares issued to Acima Holdings employees subject to vesting restrictions, as described in Note 2.

(4) Asset impairments primarily includes impairments of operating lease right-of-use assets and other property assets related to the closure of Rent-A-Center Business stores in the first three months of 2021.