Other Charges (Notes)

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

Other Charges

Other Charges

Acima Holdings Acquisition. 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 three months ended March 31, 2023 and 2022, we recognized approximately $109.5 million and $36.6 million in stock compensation expense, respectively, related to these restricted stock agreements. See Note 11 for additional information.

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, 2023 and 2022, we recognized approximately $14.2 million and $22.1 million in amortization expense, respectively, related acquired intangible assets. We also recognized approximately $4.0 million in incremental depreciation expense related to acquired technology assets in both the three months ended March 31, 2023 and 2022.

During the three months ended March 31, 2022, we recognized approximately $0.2 million in transaction costs associated with the closing of the transaction.

Activity with respect to Other charges for the three months ended March 31, 2023 is summarized in the below table:

(in thousands)	Accrued Charges at December 31, 2022		Charges & Adjustments		Payments & Adjustments		Accrued Charges at March 31, 2023
Cash charges:
Labor reduction costs(1)	2,202		—		(768)		1,434
Total cash charges	$	2,202	—		$	(768)	$	1,434
Non-cash charges:
Acima Holdings restricted stock agreements(2)			109,473
Depreciation and amortization of acquired assets(3)			18,234
Other			(137)
Total other charges			$	127,570

(1) Represents charges incurred and payments 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 11.

(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 in 2021.