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Other Gains and Charges
 6 Months Ended
Jun. 30, 2024
Unusual or Infrequent Items, or Both [Abstract]  
Other Gains and Charges Other Gains and 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 were recognized over the vesting term as stock compensation expense, in accordance with ASC Topic 718, “Stock-based Compensation”. During the six months ended June 30, 2024 and 2023, we recognized approximately $4.9 million and $118.7 million in stock compensation expense, respectively, related to these restricted stock agreements. See Note 10 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, 2024 and 2023, we recognized approximately $23.6 million and $28.5 million in amortization expense, respectively, related to acquired intangible assets. We also recognized approximately $7.9 million in incremental depreciation expense related to acquired technology assets during both the six months ended June 30, 2024 and 2023.
Internally Developed Software Depreciation. During the third quarter of 2023, we completed initial development and began pilot testing a new internally developed point-of-sale system for our Rent-A-Center lease-to-own stores. Deployment of the new system across our lease-to-own store network began in the second quarter of 2024 and is expected to be complete in the third
quarter of 2024, at which time our existing point-of-sale software will be retired. Therefore, in the third quarter of 2023, we accelerated the remaining useful lives of our existing point-of-sale software assets to align with the current deployment timeline of our new point-of-sale system, which resulted in the recognition of additional depreciation expense of $6.1 million for the six months ended June 30, 2024.
Store Consolidations. During the first half of 2024, we closed 55 Rent-A-Center stores, resulting in pre-tax charges of $5.4 million in lease impairment charges, $0.6 million in disposal of fixed assets and $0.4 million in other miscellaneous shutdown and holding costs.
Stock Award Letter Agreement. On April 3, 2024, we entered into a letter agreement with the Company’s Chief Executive Officer as disclosed in our Current Report on Form 8-K dated as of April 5, 2024. The terms of the letter agreement included special provisions for his outstanding restricted stock awards vesting at various times through February 2027, which resulted in the acceleration of stock compensation expense for those awards in accordance with ASC Topic 718, “Stock-based Compensation”. Accelerated stock compensation expense recognized for the six months ended June 30, 2024 due to this letter agreement was approximately $1.7 million.
Activity with respect to other gains and charges is summarized in the below table:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2024202320242023
Acima acquired assets depreciation and amortization$14,900 $18,233 $31,546 $36,467 
Acima equity consideration vesting— 9,276 4,893 118,749 
Accelerated software depreciation1,534 — 6,145 — 
Asset impairments5,382 — 6,028 — 
Accelerated stock compensation1,733 — 1,733 — 
Legal settlement reserve700 277 700 140 
Other(1)
673 — 673 — 
Total other gains and charges
$24,922 $27,786 $51,718 $155,356 
(1) Primarily represents shutdown and holding expenses related to store closures