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Segment Information (Notes)
 12 Months Ended
Dec. 31, 2022
Segment Information [Abstract]  
Segment Information [Text Block] Segment Information
The operating segments reported below are the segments for which separate financial information is available and for which segment results are evaluated by the chief operating decision makers. Our operating segments are organized based on factors including, but not limited to, type of business transactions, geographic location and store ownership. Within our operating segments, we offer merchandise for lease from certain basic product categories: furniture, including mattresses, tires, consumer electronics, appliances, tools, handbags, computers, smartphones, and accessories.
We report financial operating performance under four operating segments. To better reflect our current strategic focus, our retail partner business operations are now reported as the Acima segment (formerly Preferred Lease), which includes our virtual and staffed business models; and our Rent-A-Center Business segment, which operates our company-owned stores and e-commerce platform through rentacenter.com. In addition, we report operating results for our Mexico and Franchising segments. Reportable segments and their respective operations are defined as follows.
Our Rent-A-Center Business segment primarily operates lease-to-own stores in the United States and Puerto Rico whose customers enter into weekly, semi-monthly or monthly rental purchase agreements, which renew automatically upon receipt of each payment. We retain the title to the merchandise during the term of the rental purchase agreement and ownership passes to the customer if the customer has continuously renewed the rental purchase agreement through the end of the term or exercises a specified early purchase option. This segment also includes the 48 stores operating in two states that utilize a retail model which generates installment credit sales through a retail sale transaction. Segment assets include cash, receivables, rental merchandise, property assets and other intangible assets.
Our Acima segment, which primarily operates in the United States and Puerto Rico, and which includes the operations of Acima Holdings acquired in February 2021 and our former Preferred Lease virtual and staffed locations, generally offers the lease-to-own transaction to consumers who do not qualify for financing from the traditional retailer. The Acima segment offers the lease-to-own transaction through our virtual offering solutions across e-commerce, digital, and mobile channels, and through staffed and unstaffed kiosks located within such retailer’s locations.
Our Mexico segment currently consists of our company-owned lease-to-own stores in Mexico. The nature of this segment's operations and assets are the same as our Rent-A-Center Business segment.
The stores in our Franchising segment use Rent-A-Center’s, ColorTyme’s or RimTyme’s trade names, service marks, trademarks and logos, and operate under distinctive operating procedures and standards. Franchising’s primary source of revenue is the sale of rental merchandise to its franchisees who, in turn, offer the merchandise to the general public for rent or purchase under a lease-to-own program. As franchisor, Franchising receives royalties of 2.0% to 6.0% of the franchisees' monthly gross revenue and initial fees for new locations. Segment assets include cash, trade receivables, property assets and intangible assets.
Segment information as of and for the years ended December 31, 2022, 2021, and 2020 is as follows:
Year Ended December 31,
(In thousands)202220212020
Revenues
Rent-A-Center Business$1,949,864 $2,037,849 $1,852,641 
Acima2,110,320 2,328,089 810,151 
Mexico64,880 61,403 50,583 
Franchising120,328 156,110 100,816 
Total revenues$4,245,392 $4,583,451 $2,814,191 
Year Ended December 31,
(In thousands)202220212020
Gross profit
Rent-A-Center Business$1,372,863 $1,433,536 $1,294,695 
Acima632,244 728,852 321,110 
Mexico45,812 43,117 35,665 
Franchising28,613 29,507 20,682 
Total gross profit$2,079,532 $2,235,012 $1,672,152 
Year Ended December 31,
(In thousands)202220212020
Operating profit
Rent-A-Center Business$334,525 $448,905 $333,379 
Acima151,301 176,496 57,847 
Mexico6,267 7,858 5,798 
Franchising19,124 20,321 12,570 
Total segments511,217 653,580 409,594 
Corporate(1)
(362,679)(373,041)(172,258)
Total operating profit$148,538 $280,539 $237,336 
(1) Includes stock compensation expense of $143.2 million and $127.1 million for the twelve months ended December 31, 2022 and 2021, related to common stock issued to Acima Holdings employees under restricted stock agreements as part of the acquisition consideration subject to vesting restrictions as described in Note N.
Year Ended December 31,
(In thousands)202220212020
Depreciation, amortization and write-down of intangibles
Rent-A-Center Business$20,526 $18,588 $19,912 
Acima(1)
1,928 2,122 2,066 
Mexico711 511 413 
Franchising146 93 40 
Total segments23,311 21,314 22,431 
Corporate(2)
29,768 33,516 34,227 
Total depreciation, amortization and write-down of intangibles$53,079 $54,830 $56,658 
(1) Excludes amortization expense of approximately $64.9 million and $101.7 million for the twelve months ended December 31, 2022 and 2021, respectively, recorded to Other charges in the Consolidated Statement of Operations, related to intangible assets acquired upon closing of the Acima Holdings acquisition. See Note N for additional information.
(2) Excludes depreciation expense of approximately $15.9 million and $13.2 million for the twelve months ended December 31, 2022 and 2021, respectively, recorded to Other charges in the Consolidated Statement of Operations, related to software acquired upon closing of the Acima Holdings acquisition. See Note N for additional information.
Year Ended December 31,
(In thousands)202220212020
Capital expenditures
Rent-A-Center Business$36,682 $23,139 $14,869 
Acima244 1,045 161 
Mexico1,590 1,032 392 
Franchising332 — — 
Total segments38,848 25,216 15,422 
Corporate22,539 37,234 19,123 
Total capital expenditures$61,387 $62,450 $34,545 
December 31,
(In thousands)202220212020
On rent rental merchandise, net
Rent-A-Center Business$465,095 $477,901 $444,945 
Acima503,795 676,279 299,660 
Mexico20,979 18,844 18,281 
Total on rent rental merchandise, net$989,869 $1,173,024 $762,886 
December 31,
(In thousands)202220212020
Held for rent rental merchandise, net
Rent-A-Center Business$124,117 $123,111 $136,219 
Acima373 626 2,228 
Mexico10,469 9,247 7,819 
Total held for rent rental merchandise, net$134,959 $132,984 $146,266 
December 31,
(In thousands)202220212020
Assets by segment
Rent-A-Center Business$1,067,875 $1,026,886 $999,252 
Acima1,198,879 1,476,752 389,650 
Mexico51,225 41,669 42,278 
Franchising18,194 15,412 14,729 
Total segments2,336,173 2,560,719 1,445,909 
Corporate427,446 432,608 305,071 
Total assets$2,763,619 $2,993,327 $1,750,980 
December 31,
(In thousands)202220212020
Assets by country
United States$2,712,394 $2,951,658 $1,708,702 
Mexico51,225 41,669 42,278 
Total assets$2,763,619 $2,993,327 $1,750,980 

 Year Ended December 31,
(In thousands)202220212020
Rentals and fees by inventory category
Furniture and accessories$1,323,437 $1,542,003 $1,028,876 
Consumer electronics482,959 435,004 358,931 
Appliances439,309 426,316 322,261 
Wheels and tires308,618 280,132 — 
Jewelry194,123 146,477 — 
Computers129,577 155,313 119,015 
Smartphones52,803 61,058 59,205 
Other products and services444,627 476,150 374,803 
Total rentals and fees$3,375,453 $3,522,453 $2,263,091 
 Year Ended December 31,
(In thousands)202220212020
Revenue by country
United States$4,180,512 $4,522,048 $2,763,608 
Mexico64,880 61,403 50,583 
Total revenues$4,245,392 $4,583,451 $2,814,191