Other Charges (Notes)

9 Months Ended

Sep. 30, 2022

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 were 8,096,595 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 nine months ended September 30, 2022 and 2021, we recognized approximately $111.5 million and $93.1 million in stock compensation expense related to these restricted stock agreements, respectively.

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 nine months ended September 30, 2022 and 2021, we recognized approximately $50.6 million and $72.4 million in amortization expense and $11.9 million and $9.3 million in incremental depreciation expense related to these assets, respectively.

During the nine months ended September 30, 2022 and 2021, we recognized approximately $0.2 million and $17.3 million in transaction costs associated with the closing of the transaction, respectively.

During the nine months ended September 30, 2021 we recognized approximately $7.9 million in post-acquisition integration costs, including $3.5 million in employee severance, $3.3 million in inventory losses, and $1.1 million in other integration costs, including reorganization advisory fees.

Activity with respect to Other charges for the nine months ended September 30, 2022 is summarized in the below table:

(in thousands)	Accrued Charges at December 31, 2021		Charges & Adjustments		Payments & Adjustments		Accrued Charges at September 30, 2022
Cash charges:
Acima Holdings transaction costs	$	—	$	187	$	(187)	$	—
Labor reduction costs(1)	1,593		5,160		(3,757)		2,996
Other cash charges	—		293		(293)		—
Total cash charges	$	1,593	5,640		$	(4,237)	$	2,996
Non-cash charges:
Acima Holdings restricted stock agreements(2)			111,489
Depreciation and amortization of acquired assets(3)			62,558
Asset impairments(4)			6,768
Other			(1,020)
Total other charges			$	185,435

(1) Represents charges incurred for employee severance.

(2) Represents stock compensation expense 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.

(3) 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 in Note 2.

(4) Primarily represents impairment of software assets.