Other Charges

6 Months Ended

Jun. 30, 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 six months ended June 30, 2023 and 2022, we recognized approximately $118.7 million and $69.4 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 six months ended June 30, 2023 and 2022, we recognized approximately $28.5 million and $36.4 million in amortization expense, respectively, related to acquired intangible assets. We also recognized approximately $7.9 million and $8.0 million in incremental depreciation expense related to acquired technology assets in both the six months ended June 30, 2023 and 2022.

During the six months ended June 30, 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 six months ended June 30, 2023 is summarized in the below table:

(in thousands)	Accrued Charges at December 31, 2022		Charges & Adjustments		Payments & Adjustments		Accrued Charges at June 30, 2023
Cash charges:
Labor reduction costs(1)	$	2,202	$	—	$	(1,610)	$	592
Total cash charges	$	2,202	—		$	(1,610)	$	592
Non-cash charges:
Acima Holdings restricted stock agreements(2)			118,749
Depreciation and amortization of acquired assets(3)			36,467
Other			140
Total other charges			$	155,356

(1) Represents charges incurred and payments related to 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.