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Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases Leases
We lease space for all of our Rent-A-Center and Mexico stores under operating leases expiring at various times through 2034. In addition, we lease space for certain support facilities under operating leases expiring at various times through 2032. Most of our store leases are five years leases and contain renewal options for additional periods ranging from three years to five years at
rental rates adjusted according to agreed upon formulas. We evaluate all leases to determine if it is likely that we will exercise future renewal options and in most cases we are not reasonably certain of exercise due to competing market rental rates and lack of significant penalty, or business disruption incurred by not exercising the renewal options.
In certain situations involving the sale of a Rent-A-Center corporate store to a franchisee, we enter into a lease assignment agreement with the buyer, but we remain the primary obligor under the original lease for the remaining active term. These assignments are therefore classified as subleases and the original lease is included in our operating lease right-of-use assets and operating lease liabilities in our Consolidated Balance Sheets.
We lease vehicles for all of our Rent-A-Center stores under operating leases with lease terms expiring twelve months after the start date of the lease. We classify these leases as short-term and have elected the short-term lease exemption for our vehicle leases, and have therefore excluded them from our operating lease right-of-use assets within our Consolidated Balance Sheets. We also lease vehicles for all of our Mexico stores which have terms expiring at various times through 2027 with rental rates adjusted periodically for inflation. Finally, we have a minimal number of equipment leases, primarily related to temporary storage containers and certain back office technology hardware assets.
In our calculation of operating lease right-of-use assets and operating lease liabilities we have elected not to separate the lease and non-lease components. Furthermore, operating lease right-of-use assets and operating lease liabilities are discounted using our incremental borrowing rate, since the implicit rate is not readily determinable. We do not currently have any financing leases.
Operating lease costs are recorded on a straight-line basis within other store expenses in our Consolidated Statements of Operations.
Total operating lease costs by expense type:
Year Ended
(in thousands)December 31, 2023December 31, 2022December 31, 2021
Operating lease cost included in other store expenses(1)(2)
$124,593 $124,376 $129,217 
Operating lease cost included in general and administrative expenses(2)
5,725 6,297 6,320 
Operating lease cost included in other charges— 303 302 
Sublease receipts(3,913)(7,128)(11,806)
Total operating lease charges $126,405 $123,848 $124,033 
(1) Includes short-term lease costs, which are not significant.
(2) Excludes variable lease costs of $37.7 million, $36.2 million and $33.7 million for the years ended December 31, 2023, 2022 and 2021 respectively.
Supplemental cash flow information related to leases:
Year Ended
(in thousands)December 31, 2023December 31, 2022December 31, 2021
Cash paid for amounts included in measurement of operating lease liabilities$105,438 $104,281 $107,588 
Cash paid for short-term operating leases not included in operating lease liabilities19,306 18,639 17,266 
Right-of-use assets obtained in exchange for new operating lease liabilities68,707 99,952 100,779 
Weighted-average discount rate and weighted-average remaining lease term:
December 31, 2023December 31, 2022December 31, 2021
Weighted-average discount rate(1)
7.8 %7.0 %6.0 %
Weighted-average remaining lease term (in years)444
(1) January 1, 2019 incremental borrowing rate was used for leases in existence at the time of adoption of ASU 2016-02.
Reconciliation of undiscounted operating lease liabilities to the present value operating lease liabilities at December 31, 2023:
(in thousands)Operating Leases
2024$107,276 
202592,161 
202666,931 
202745,140 
202823,229 
Thereafter32,564 
Total undiscounted operating lease liabilities367,301 
Less: Interest(73,866)
Total present value of operating lease liabilities$293,435