Other Charges (Notes)

6 Months Ended

Jun. 30, 2021

Restructuring and Related Activities [Abstract]

Other Charges

Other Charges

Acima 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 six months ended June 30, 2021, we recognized approximately $50.3 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 six months ended June 30, 2021, we recognized approximately $43.2 million in amortization expense and $5.3 million in incremental depreciation expense related to these assets.

Furthermore, during the six months ended June 30, 2021 we recognized approximately $17.1 million in transaction costs associated with the closing of the transaction, and approximately $3.9 million in post-acquisition integration costs, including $3.1 million in employee severance and $0.8 million in other integration costs, including reorganization advisory fees.

Activity with respect to Other charges for the six months ended June 30, 2021 is summarized in the below table:

(in thousands)	Accrued Charges at December 31, 2020		Charges & Adjustments		Payments & Adjustments		Accrued Charges at June 30, 2021
Cash charges:
Acima Holdings transaction costs	$	5,005	$	17,111	$	(21,654)	$	462
Acima Holdings integration costs	—		3,932		(1,496)		2,436
Other cash charges(1)	344		297		(641)		—
Total cash charges	$	5,349	21,340		$	(23,791)	$	2,898
Non-cash charges:
Depreciation and amortization of acquired assets(2)			48,492
Acima Holdings restricted stock agreements(3)			50,292
Legal settlement reserves			3,500
Asset impairments(4)			148
Total other charges			$	123,772

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

(2) Represents amortization of the total fair value of acquired intangible assets and incremental depreciation related to the fair value increase over net book value of acquired software assets in connection with the acquisition of Acima Holdings as described Note 2.

(3) Represents stock compensation expense recognized for six months ended June 30, 2021, related to common stock issued to Acima Holdings employees under restricted stock agreements as part of the acquisition proceeds subject to vesting restrictions, as described in Note 2 and Note 12.

(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 for the six months ended June 30, 2021.