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Segment Information
 12 Months Ended
Dec. 31, 2024
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 our Chief Operating Decision Makers (“CODMs”). Our CODMs include Upbound's Chief Executive Officer and Chief Financial Officer. Our CODMs regularly review the operating performance of our operating segments as compared to Company projections and operating performance in prior periods, in addition to other factors, including the Company’s strategic initiatives, as well as industry, macroeconomic, and market trends, in determining the appropriate allocation of resources to support our business operations. 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; and accessories.
We report financial operating performance under four operating segments. To better reflect our current strategic focus, our third-party retailer 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 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 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 through an early purchase option or payment of all optional lease renewal terms. This segment also includes 51 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 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 3.0% 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, 2024, 2023, and 2022 is as follows:
Year Ended December 31,
(in thousands)202420232022
Revenues
Acima$2,261,446 $1,931,325 $2,110,320 
Rent-A-Center1,863,425 1,864,123 1,949,864 
Mexico78,726 74,625 64,880 
Franchising116,967 122,340 120,328 
Total revenues(1)
$4,320,564 $3,992,413 $4,245,392 
(1) See Note C for additional information.
Year Ended December 31,
(in thousands)202420232022
Gross profit
Acima$702,620 $644,447 $632,244 
Rent-A-Center1,292,546 1,297,705 1,372,863 
Mexico56,432 52,869 45,812 
Franchising28,753 27,237 28,613 
Total gross profit$2,080,351 $2,022,258 $2,079,532 
Year Ended December 31,
(in thousands)202420232022
Operating profit
Acima(1)
$255,549 $235,480 $151,301 
Rent-A-Center(2)
280,423 273,518 334,525 
Mexico4,806 4,846 6,267 
Franchising16,737 17,087 19,124 
Total segments557,515 530,931 511,217 
Corporate(3)
(265,884)(368,066)(362,679)
Total operating profit(4)
$291,631 $162,865 $148,538 
(1) Acima operating expenses for the years ended December 31, 2024, 2023 and 2022 include operating labor expenses of $103.0 million, $102.9 million and $113.9 million, respectively, and non-labor operating expenses of $295.6 million, $246.3 million and $295.7 million, respectively. Acima non-labor operating expenses include LCOs of $211.8 million, $179.6 million and $224.7 million for the years ended December 31, 2024, 2023 and 2022, respectively.
(2) Rent-A-Center operating expenses for the years ended December 31, 2024, 2023 and 2022 include operating labor expenses of $487.8 million, $493.4 million and $506.1 million, respectively, and non-labor operating expenses of $486.6 million, $500.1 million and $501.7 million, respectively. Rent-A-Center non-labor operating expenses include LCOs of $84.8 million, $79.9 million and $91.7 million for the years ended December 31, 2024, 2023 and 2022, respectively.
(3) Includes stock compensation expense of $4.9 million, $137.5 million and $143.2 million for the years ended December 31, 2024, 2023 and 2022, 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. Also includes stock compensation expense of $5.1 million for the year ended December 31, 2024, related to acceleration of stock compensation expense for certain restricted stock awards included in the letter agreement with the Company's Chief Executive Officer as described in Note N.
(4) The accounting policies of our segments are the same as those described for the Company in Note A.
Year Ended December 31,
(in thousands)202420232022
Depreciation and amortization
Acima(1)
$1,376 $1,661 $1,928 
Rent-A-Center20,367 18,816 20,526 
Mexico1,566 1,206 711 
Franchising141 146 146 
Total segments23,450 21,829 23,311 
Corporate(2)
27,436 29,492 29,768 
Total depreciation and amortization$50,886 $51,321 $53,079 
(1) Excludes amortization expense of approximately $45.5 million, $57.0 million and $64.9 million for the years ended December 31, 2024, 2023 and 2022, respectively, recorded to Other gains and 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 each of the years ended December 31, 2024, 2023 and 2022, recorded to Other gains and charges in the Consolidated Statements of Operations, related to software acquired upon closing of the Acima Holdings acquisition and depreciation expense of $6.1 million and $9.2 million for the years ended December 31, 2024 and 2023 recorded to Other gains and charges in the Consolidated Statements of Operations, related to accelerated software depreciation. See Note N for additional information.
Year Ended December 31,
(in thousands)202420232022
Capital expenditures
Acima$1,560 $512 $244 
Rent-A-Center24,209 22,923 36,682 
Mexico2,199 2,153 1,590 
Franchising— 1 332 
Total segments27,968 25,589 38,848 
Corporate28,307 27,813 22,539 
Total capital expenditures$56,275 $53,402 $61,387 
December 31,
(in thousands)20242023
On rent rental merchandise, net
Acima$693,095 $606,912 
Rent-A-Center420,382 478,774 
Mexico21,383 24,210 
Total on rent rental merchandise, net$1,134,860 $1,109,896 
December 31,
(in thousands)20242023
Held for rent rental merchandise, net
Acima$261 $498 
Rent-A-Center104,302 112,129 
Mexico9,359 11,540 
Total held for rent rental merchandise, net$113,922 $124,167 
December 31,
(in thousands)20242023
Assets by segment
Acima$1,301,657 $1,221,845 
Rent-A-Center948,661 1,061,107 
Mexico47,608 57,347 
Franchising29,126 18,023 
Total segments2,327,052 2,358,322 
Corporate322,610 363,108 
Total assets$2,649,662 $2,721,430 
December 31,
(in thousands)20242023
Assets by country
United States$2,602,054 $2,664,083 
Mexico47,608 57,347 
Total assets$2,649,662 $2,721,430 

 Year Ended December 31,
(in thousands)202420232022
Rentals and fees by inventory category
Furniture and accessories$1,337,917 $1,179,919 $1,323,437 
Consumer electronics426,078 486,571 482,959 
Appliances411,720 404,241 439,309 
Wheels and tires447,008 341,174 308,618 
Jewelry302,035 228,081 194,123 
Personal Electronics177,714 181,217 182,380 
Other products and services411,186 440,475 444,627 
Total rentals and fees$3,513,658 $3,261,678 $3,375,453 
 Year Ended December 31,
(in thousands)202420232022
Revenue by country
United States$4,241,838 $3,917,788 $4,180,512 
Mexico78,726 74,625 64,880 
Total revenues$4,320,564 $3,992,413 $4,245,392