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Segment Information
 12 Months Ended
Dec. 31, 2023
Segment Information [Abstract]  
Segment Information 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: such as 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 reported as the Acima segment, which includes our virtual and staffed business models; and our company-owned stores and e-commerce platform through rentacenter.com are reported as the Rent-A-Center segment. 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 segment primarily operates lease-to-own stores in the United States and Puerto Rico whose customers enter into weekly, bi-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 all required lease renewals or exercises a specified early purchase option. This segment also includes the 52 stores operating in two states that utilize a retail model which offers 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, includes the operations of Acima Holdings acquired in February 2021 and certain locations previously operating under our Acceptance Now brand, generally offers the lease-to-own transaction to consumers who do not qualify for traditional financing. The Acima segment offers the lease-to-own transaction through our virtual solutions across e-commerce, digital, and mobile channels, and through staffed and unstaffed kiosks located within such retailer’s locations.
Our Mexico segment 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 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, 2023, 2022, and 2021 is as follows:
Year Ended December 31,
(in thousands)202320222021
Revenues
Rent-A-Center$1,864,123 $1,949,864 $2,037,849 
Acima1,931,325 2,110,320 2,328,089 
Mexico74,625 64,880 61,403 
Franchising122,340 120,328 156,110 
Total revenues$3,992,413 $4,245,392 $4,583,451 
Year Ended December 31,
(in thousands)202320222021
Gross profit
Rent-A-Center$1,297,705 $1,372,863 $1,433,536 
Acima644,447 632,244 728,852 
Mexico52,869 45,812 43,117 
Franchising27,237 28,613 29,507 
Total gross profit$2,022,258 $2,079,532 $2,235,012 
Year Ended December 31,
(in thousands)202320222021
Operating profit
Rent-A-Center$273,518 $334,525 448,905 
Acima235,480 151,301 176,496 
Mexico4,846 6,267 7,858 
Franchising17,087 19,124 20,321 
Total segments530,931 511,217 653,580 
Corporate(1)
(368,066)(362,679)(373,041)
Total operating profit$162,865 $148,538 $280,539 
(1) Includes stock compensation expense of $137.5 million, $143.2 million and $127.1 million for the years ended December 31, 2023, 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)202320222021
Depreciation, amortization and write-down of intangibles
Rent-A-Center$18,816 $20,526 $18,588 
Acima(1)
1,661 1,928 2,122 
Mexico1,206 711 511 
Franchising146 146 93 
Total segments21,829 23,311 21,314 
Corporate(2)
29,492 29,768 33,516 
Total depreciation, amortization and write-down of intangibles$51,321 $53,079 $54,830 
(1) Excludes amortization expense of approximately $57.0 million, $64.9 million and $101.7 million for the years ended December 31, 2023, 2022 and 2021, respectively, recorded to Other charges in the Consolidated Statements 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 for both the years ended December 31, 2023 and 2022 and $13.2 million for the year ended December 31, 2021, recorded to Other charges in the Consolidated Statements of Operations, related to software acquired upon closing of the Acima Holdings acquisition and accelerated software depreciation. See Note N for additional information.
Year Ended December 31,
(in thousands)202320222021
Capital expenditures
Rent-A-Center$22,923 $36,682 $23,139 
Acima512 244 1,045 
Mexico2,153 1,590 1,032 
Franchising1 332 — 
Total segments25,589 38,848 25,216 
Corporate27,813 22,539 37,234 
Total capital expenditures$53,402 $61,387 $62,450 
December 31,
(in thousands)20232022
On rent rental merchandise, net
Rent-A-Center$478,774 $465,095 
Acima606,912 503,795 
Mexico24,210 20,979 
Total on rent rental merchandise, net$1,109,896 $989,869 
December 31,
(in thousands)20232022
Held for rent rental merchandise, net
Rent-A-Center$112,129 $124,117 
Acima498 373 
Mexico11,540 10,469 
Total held for rent rental merchandise, net$124,167 $134,959 
December 31,
(in thousands)20232022
Assets by segment
Rent-A-Center$1,061,107 $1,067,875 
Acima1,221,845 1,198,879 
Mexico57,347 51,225 
Franchising18,023 18,194 
Total segments2,358,322 2,336,173 
Corporate363,108 427,446 
Total assets$2,721,430 $2,763,619 
December 31,
(in thousands)20232022
Assets by country
United States$2,664,083 $2,712,394 
Mexico57,347 51,225 
Total assets$2,721,430 $2,763,619 

 Year Ended December 31,
(in thousands)202320222021
Rentals and fees by inventory category
Furniture and accessories$1,179,919 $1,323,437 $1,542,003 
Consumer electronics486,571 482,959 435,004 
Appliances404,241 439,309 426,316 
Wheels and tires341,174 308,618 280,132 
Jewelry228,081 194,123 146,477 
Computers116,971 129,577 155,313 
Smartphones64,246 52,803 61,058 
Other products and services440,475 444,627 476,150 
Total rentals and fees$3,261,678 $3,375,453 $3,522,453 
 Year Ended December 31,
(in thousands)202320222021
Revenue by country
United States$3,917,788 $4,180,512 $4,522,048 
Mexico74,625 64,880 61,403 
Total revenues$3,992,413 $4,245,392 $4,583,451