0000933036-21-000147 | 10-Q | XBRL Viewer

Document and Company Information - shares	3 Months Ended
Document and Company Information - shares	Mar. 31, 2021	Apr. 28, 2021
Document And Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Transition Report	false
Entity File Number	001-38047
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	45-0491516
Entity Address, Address Line One	5501 Headquarters Drive
Entity Address, City or Town	Plano
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75024
City Area Code	972
Local Phone Number	801-1100
Title of 12(b) Security	Common stock, $.01 par value
Trading Symbol	RCII
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		66,309,348
Entity Registrant Name	RENT A CENTER INC DE
Entity Central Index Key	0000933036
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Store
Rentals and fees	$ 745,534	$ 568,000
Merchandise sales	232,793	101,380
Installment sales	17,773	14,747
Other	918	722
Total store revenues	997,018	684,849
Franchise
Merchandise sales	33,055	12,437
Royalty income and fees	6,709	4,653
Total revenues	1,036,782	701,939
Store
Cost of rentals and fees	247,035	165,455
Cost of merchandise sold	240,106	98,757
Cost of installment sales	6,041	5,025
Total cost of store revenues	493,182	269,237
Franchise cost of merchandise sold	33,077	12,524
Total cost of revenues	526,259	281,761
Gross profit	510,523	420,178
Store expenses
Labor	156,707	153,794
Other store expenses	170,133	161,718
General and administrative expenses	49,125	39,175
Depreciation and amortization	13,393	14,913
Other charges	51,119	1,703
Total operating expenses	440,477	371,303
Operating profit	70,046	48,875
Debt refinancing charges	8,743	0
Interest expense	11,990	4,447
Interest income	(74)	(144)
Earnings before income taxes	49,387	44,572
Income tax expense (benefit)	6,835	(4,720)
Net earnings	$ 42,552	$ 49,292
Basic earnings per common share	$ 0.76	$ 0.90
Diluted earnings per common share	0.64	0.88
Cash dividends declared per common share	$ 0.31	$ 0

Condensed Consolidated Statement of Comprehensive Income Statement - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Condensed Consolidated Statements of Comprehensive Income [Abstract]
Net earnings	$ 42,552	$ 49,292
Other comprehensive loss
Foreign currency translation adjustments, net of tax of $(227) and $(1,038) for the three months ended March 31, 2021 and 2020, respectively	(853)	(3,906)
foreign currency translation tax adjustment	(227)	(1,038)
Total other comprehensive loss	(853)	(3,906)
Comprehensive income	41,699	45,386
Accumulated Other comprehensive Loss [Member]
Other comprehensive loss
Total other comprehensive loss	$ (853)	$ (3,906)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
ASSETS
Cash and cash equivalents	$ 123,019	$ 159,449
Receivables, net of allowance for doubtful accounts of $7,981 and $8,047 in 2021 and 2020, respectively	115,345	90,003
Allowance for doubtful accounts	7,981	8,047
Prepaid expenses and other assets	40,839	50,006
Rental merchandise, net
On rent	1,115,913	762,886
Held for rent	135,244	146,266
Merchandise held for installment sale	5,726	5,439
Property assets, net of accumulated depreciation of $517,765 and $505,074 in 2021 and 2020, respectively	309,860	141,641
Property assets, accumulated depreciation	517,765	505,074
Operating lease right-of-use assets	297,577	283,422
Deferred tax asset	37,736	33,782
Goodwill	311,991	70,217
Other intangible assets, net	513,708	7,869
Total Assets	3,006,958	1,750,980
LIABILITIES
Accounts payable - trade	179,933	186,063
Accrued liabilities	381,265	320,583
Operating lease liabilities	299,892	285,354
Deferred tax liability	71,257	176,410
Senior debt, net	897,912	190,490
Senior notes, net	434,512	0
Total Liabilities	2,264,771	1,158,900
STOCKHOLDERS' EQUITY
Common stock, $.01 par value; 250,000,000 shares authorized; 124,193,049 and 112,180,517 shares issued in March 31, 2021 and December 31, 2020, respectively	$ 1,142	$ 1,105
Common stock - par value	$ 0.01	$ 0.01
Common stock - shares authorized	250,000,000	250,000,000
Common stock - shares issued	124,193,049	112,180,517
Additional paid-in capital	$ 1,015,995	$ 886,902
Retained earnings	1,112,840	1,091,010
Treasury stock at cost, 57,891,859 shares in March 31, 2021 and December 31, 2020	$ (1,375,541)	$ (1,375,541)
Treasury stock - shares at cost	57,891,859	57,891,859
Accumulated other comprehensive loss	$ (12,249)	$ (11,396)
Total Stockholders' Equity	742,187	592,080
Total Liabilities and Stockholders' Equity	$ 3,006,958	$ 1,750,980

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other comprehensive Loss [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock, shares, outstanding		111,166
Total stockholders' equity	$ 458,963	$ 1,110	$ 869,617	$ 947,875	$ (1,348,969)	$ (10,670)
Total stockholders' equity \| ASC 326 adoption	(769)			(769)
Net earnings	49,292			49,292
Other comprehensive loss	(3,906)					(3,906)
Purchase of treasury stock	(26,525)	$ (14)			(26,511)
Exercise of stock options, shares		69
Exercise of stock options	1,195	$ 1	1,194
Vesting of restricted share units, net of shares withheld for employee taxes, shares		434
Vesting of restricted share units, net of shares withheld for employee taxes	(5,270)	$ 4	(5,274)
Stock-based compensation	3,043		3,043
Common stock, shares, outstanding		111,669
Total stockholders' equity	476,023	$ 1,101	868,580	996,398	(1,375,480)	(14,576)
Common stock, shares, outstanding		112,181
Total stockholders' equity	592,080	$ 1,105	886,902	1,091,010	(1,375,541)	(11,396)
Net earnings	42,552			42,552
Other comprehensive loss	(853)					(853)
Exercise of stock options, shares		330
Exercise of stock options	8,944	$ 3	8,941
Vesting of restricted share units, net of shares withheld for employee taxes, shares		902
Vesting of restricted share units, net of shares withheld for employee taxes	(20,903)	$ 7	(20,910)
Stock-based compensation	20,148		20,148
Dividends declared	(20,722)			(20,722)
Acima Acquisition, shares		10,780
Acima Acquisition	120,941	$ 27	120,914
Common stock, shares, outstanding		124,193
Total stockholders' equity	$ 742,187	$ 1,142	$ 1,015,995	$ 1,112,840	$ (1,375,541)	$ (12,249)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities
Net earnings	$ 42,552	$ 49,292
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation of rental merchandise	237,636	160,445
Bad debt expense	3,449	3,749
Stock-based compensation expense	20,148	3,043
Depreciation of property assets	14,459	14,597
Loss on sale or disposal of property assets	165	558
Amortization of intangibles	14,192	319
Amortization of financing fees	1,117	408
Write-off of debt financing fees	4,546	0
Deferred income taxes	3,852	(121)
Changes in operating assets and liabilities, net of acquired assets
Rental merchandise	(222,054)	(106,739)
Receivables	1,674	7,270
Prepaid expenses and other assets	9,932	5,935
Operating lease right-of-use assets and lease liabilities	(171)	3,704
Accounts payable - trade	(22,152)	(61,265)
Accrued liabilities	26,448	(33,795)
Net cash provided by operating activities	135,793	47,400
Cash flows from investing activities
Purchase of property assets	(11,388)	(9,151)
Proceeds from sale of property assets	0	187
Acquisitions of businesses	1,267,903	0
Net cash used in investing activities	(1,279,291)	(8,964)
Cash flows from financing activities
Share repurchases	0	26,511
Exercise of stock options	8,944	1,194
Shares withheld for payment of employee tax withholdings	(20,903)	(5,268)
Debt issuance costs	46,085	0
Proceeds from debt	1,490,000	198,000
Repayments of debt	(307,500)	(75,500)
Dividends paid	17,116	15,912
Net cash provided by financing activities	1,107,340	76,003
Effect of exchange rate changes on cash	(272)	(2,014)
Net (decrease) increase in cash and cash equivalents	(36,430)	112,425
Cash and cash equivalents at beginning of period	159,449	70,494
Cash and cash equivalents at end of period	$ 123,019	$ 182,919

Basis of Presentation (Notes)	3 Months Ended
Basis of Presentation (Notes)	Mar. 31, 2021
Basis of Presentation [Abstract]
Basis of Presentation [Text Block]	Basis of Presentation The interim condensed consolidated financial statements of Rent-A-Center, Inc. included herein have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to the SEC’s rules and regulations, although we believe the disclosures are adequate to make the information presented not misleading. We suggest these financial statements be read in conjunction with the financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2020. In our opinion, the accompanying unaudited interim financial statements contain all adjustments, consisting only of those of a normal recurring nature, necessary to present fairly our results of operations and cash flows for the periods presented. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year. Use of Estimates In preparing financial statements in conformity with U.S. generally accepted accounting principles, we are required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent losses and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. In applying accounting principles, we must often make individual estimates and assumptions regarding expected outcomes or uncertainties. Our estimates, judgments and assumptions are continually evaluated based on available information and experience. However, uncertainties may affect certain estimates and assumptions inherent in the financial reporting process, which may impact reported amounts of assets and liabilities in future periods and cause actual results to differ from those estimates. Principles of Consolidation and Nature of Operations These financial statements included herein include the accounts of Rent-A-Center, Inc. and its direct and indirect subsidiaries. All intercompany accounts and transactions have been eliminated. Unless the context indicates otherwise, references to “Rent-A-Center” refer only to Rent-A-Center, Inc., the parent, and references to the “Company”, “we,” “us” and “our” refer to the consolidated business operations of Rent-A-Center and any or all of its direct and indirect subsidiaries. We report four operating segments: Rent-A-Center Business, Acima (formerly Preferred Lease), Mexico and Franchising. Our Rent-A-Center Business segment consists of company-owned lease-to-own stores in the United States and Puerto Rico that lease household durable goods to customers on a lease-to-own basis. We also offer merchandise on an installment sales basis in certain of our stores under the names “Get It Now” and “Home Choice.” Our Rent-A-Center Business segment operates through our company-owned stores and e-commerce platform through rentacenter.com. Our Acima segment (formerly Preferred Lease), which operates in the United States and Puerto Rico and which, includes the operations of Acima Holdings (as defined in Note 2 below) acquired in February 2021 and our Preferred Lease virtual and staffed locations, generally offers the lease-to-own transaction to consumers who do not qualify for financing from the traditional retailer. The Acima segment offers the lease-to-own transaction through our virtual offering 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 that lease household durable goods to customers on a lease-to-own basis. Rent-A-Center Franchising International, Inc., an indirect wholly-owned subsidiary of Rent-A-Center, is a franchisor of lease-to-own stores. Our Franchising segment’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 transaction. The balance of our Franchising segment’s revenue is generated primarily from royalties based on franchisees’ monthly gross revenues. Newly Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects related to accounting for income taxes. The standard removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. We adopted ASU 2019-12 beginning January 1, 2021 using a prospective approach. Impacts to our financial statements for the three months ended March 31, 2021 resulting from the adoption of this ASU were immaterial.

Revenues Revenues (Notes)

3 Months Ended

Mar. 31, 2021

Revenues [Abstract]

Revenues [Text Block]

Revenues

The following table disaggregates our revenue for the periods ended March 31, 2021 and 2020:


	Three Months Ended March 31, 2021
	Rent-A-Center Business		Acima		Mexico		Franchising		Consolidated
(In thousands)
Store
Rentals and fees	$	429,301	$	302,526	$	13,707	$	—	$	745,534
Merchandise sales	77,378		154,630		785		—		232,793
Installment sales	17,773		—		—		—		17,773
Other	414		293		6		205		918
Total store revenues	524,866		457,449		14,498		205		997,018
Franchise
Merchandise sales	—		—		—		33,055		33,055
Royalty income and fees	—		—		—		6,709		6,709
Total revenues	$	524,866	$	457,449	$	14,498	$	39,969	$	1,036,782


	Three Months Ended March 31, 2020
	Rent-A-Center Business		Acima		Mexico		Franchising		Consolidated
(In thousands)
Store
Rentals and fees	$	393,165	$	161,998	$	12,837	$	—	$	568,000
Merchandise sales	46,687		53,988		705		—		101,380
Installment sales	14,747		—		—		—		14,747
Other	366		141		4		211		722
Total store revenues	454,965		216,127		13,546		211		684,849
Franchise
Merchandise sales	—		—		—		12,437		12,437
Royalty income and fees	—		—		—		4,653		4,653
Total revenues	$	454,965	$	216,127	$	13,546	$	17,301	$	701,939

Lease Purchase Agreements

Rent-A-Center Business, Acima, and Mexico

Rentals and Fees. Rental merchandise is leased to customers pursuant to rental purchase agreements, which provide for weekly, semi-monthly or monthly rental terms with non-refundable rental payments. At the expiration of each rental term, customers may renew the rental agreement for the next rental term. Generally, the customer has the right to acquire title of the merchandise either through a purchase option or through payment of all required rental terms. Customers can terminate the rental agreement at the end of any rental term without penalty. Therefore, rental transactions are accounted for as operating leases.

Rental payments received at our Rent-A-Center Business, Acima (excluding virtual) and Mexico locations must be prepaid in advance of the next rental term. Under the virtual business model, revenues may be earned prior to the rental payment due date, in which case revenue is accrued prior to receipt of the rental payment, net of estimated returns and uncollectible renewal payments. Under both models, rental revenue is recognized over the rental term. See Note 4 for additional information regarding accrued rental revenue.

Cash received for rental payments, including fees, prior to the period in which it should be recognized, is deferred and recognized according to the rental term. At March 31, 2021 and December 31, 2020, we had $58.3 million and $45.8 million, respectively, in deferred revenue included in accrued liabilities related to our rental purchase agreements. Revenue related to various payment, reinstatement or late fees is recognized when paid by the customer at the point service is provided. Rental merchandise in our Rent-A-Center Business, formerly Preferred Lease, and Mexico locations is depreciated using the income forecasting method and is recognized in cost of sales over the rental term. Rental merchandise in the recently acquired Acima Holdings is depreciated over the rental term using a straight-line depreciation method.

We also offer additional product plans along with our rental agreements which provide customers with liability protection against significant damage or loss of a product, and club membership benefits, including various discount programs and product service and replacement benefits in the event merchandise is damaged or lost, and payment insurance in the event eligible customers become unemployed. Customers renew product plans in conjunction with their rental term renewals, and can cancel the plans at any time. Revenue for product plans is recognized over the term of the plan. Costs incurred related to product plans are primarily recognized in cost of sales.

Revenue from contracts with customers

Rent-A-Center Business, Acima, and Mexico

Merchandise Sales. Merchandise sales include payments received for the exercise of the early purchase option offered through our rental purchase agreements or merchandise sold through point of sale transactions. Revenue for merchandise sales is recognized when payment is received and ownership of the merchandise passes to the customer. The remaining net value of merchandise sold is recorded to cost of sales at the time of the transaction.

Installment Sales. Revenue from the sale of merchandise in our retail installment stores is recognized when the installment note is signed and control of the merchandise has passed to the customer. The cost of merchandise sold through installment agreements is recognized in cost of sales at the time of the transaction. We offer extended service plans with our installment

agreements which are administered by third parties and provide customers with product service maintenance beyond the term of the installment agreement. Payments received for extended service plans are deferred and recognized, net of related costs, when the installment payment plan is complete and the service plan goes into effect. Customers can cancel extended service plans at any time during the installment agreement period and receive a refund for payments previously made towards the plan. At March 31, 2021 and December 31, 2020, we had $2.9 million and $3.1 million in deferred revenue included in accrued liabilities related to extended service plans.

Other. Other revenue consisted of revenue generated by other miscellaneous product plans offered to our rental and installment customers. Revenue for other product plans is recognized in accordance with the terms of the applicable plan agreement.

Franchising

Merchandise Sales. Revenue from the sale of rental merchandise is recognized upon shipment of the merchandise to the franchisee.

Royalty Income and Fees. Franchise royalties, including franchisee contributions to corporate advertising funds, represent sales-based royalties calculated as a percentage of gross rental payments and sales. Royalty revenue is accrued and recognized as rental payments and merchandise sales occur. Franchise fees are initial fees charged to franchisees for new or converted franchise stores. Franchise fee revenue is recognized on a straight-line basis over the term of the franchise agreement. At both March 31, 2021 and December 31, 2020, we had $4.7 million in deferred revenue included in accrued liabilities related to franchise fees.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Receivables and Allowance for Doubtful Accounts(Notes)

3 Months Ended

Mar. 31, 2021

Receivables and Allowance for Doubtful Accounts [Abstract]

Receivables and Allowance for Doubtful Accounts [Text Block]

Receivables and Allowance for Doubtful Accounts

Installment sales receivables consist primarily of receivables due from customers for the sale of merchandise in our retail installment stores. Installment sales receivable associated with the sale of merchandise at our Get It Now and Home Choice stores generally consist of the sales price of the merchandise purchased and any additional fees for services the customer has chosen, less the customer’s down payment. No interest is accrued and interest income is recognized each time a customer makes a payment, generally on a monthly basis. Interest paid on installment agreements for the three months ended March 31, 2021 and 2020 was $3.1 million and $2.8 million, respectively.

Trade and notes receivables consist of amounts due from our rental customers for renewal and uncollected rental payments; amounts owed from our franchisees for inventory purchases, earned royalties and other obligations; and other corporate related receivables. Credit is extended based on an evaluation of a franchisee’s financial condition and collateral is generally not required. Trade receivables are generally due within 30 days.

Receivables consist of the following:


(In thousands)	March 31, 2021		December 31, 2020
Installment sales receivables	$	60,798	$	61,794
Trade and notes receivables	62,528		36,256

Total receivables	123,326		98,050
Less allowance for doubtful accounts	(7,981)		(8,047)
Total receivables, net of allowance for doubtful accounts	$	115,345	$	90,003

We have established an allowance for doubtful accounts for our installment notes receivable. Our policy for determining the allowance is primarily based on historical loss experience, as well as the results of management’s review and analysis of the payment and collection of the installment notes receivable within the previous year. We believe our allowance is adequate to absorb all expected losses. Our policy is to charge off installment notes receivable that are 120 days or more past due. Charge-offs are applied as a reduction to the allowance for doubtful accounts and any recoveries of previously charged off balances are applied as an increase to the allowance for doubtful accounts.

The allowance for our Franchising trade and note receivables is determined by considering a number of factors, including the length of time receivables are past due, previous loss history, the franchisee’s current ability to pay its obligation, and the condition of the general economy and the industry as a whole. Trade receivables that are more than 90 days past due are either written-off or fully reserved in our allowance for doubtful accounts. Payments subsequently received on such receivables are credited to the allowance for doubtful accounts.

The allowance for doubtful accounts related to trade and notes receivable was $1.0 million, and the allowance for doubtful accounts related to installment sales receivable was $7.0 million at both March 31, 2021 and December 31, 2020, respectively.

Changes in our allowance for doubtful accounts are as follows:


(In thousands)	March 31, 2021
Beginning allowance for doubtful accounts	$	8,047
Bad debt expense (1)	3,449

Accounts written off, net of recoveries	(3,515)
Ending allowance for doubtful accounts	$	7,981

(1) Uncollectible installment payments, franchisee obligations, and other corporate receivables are recognized in other store operating expenses in our condensed consolidated financial statements.

Leases (Notes)

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Leases [Text Block]

Leases

We lease space for all of our Rent-A-Center Business and Mexico stores under operating leases expiring at various times through 2027. 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 year leases and contain renewal options for additional periods ranging from three to five years at rental rates adjusted according to agreed 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. We include month-to-month leases in operating lease right-of-use assets and operating lease liabilities in our Condensed Consolidated Balance Sheet. In certain situations involving the sale of a Rent-A-Center Business 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 Condensed Consolidated Balance Sheet.

We lease vehicles for all of our Rent-A-Center Business 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 Condensed Consolidated Balance Sheet. We also lease vehicles for all of our Mexico stores which have terms expiring at various times through 2025 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.

For all of the leases described above, we have elected not to separate the lease and non-lease components and instead account for these as a single component. In addition, we have elected to use available practical expedients that eliminate the requirement to reassess whether expired or existing contracts contained leases and the requirement to reassess the lease classification for any existing leases prior to our adoption of ASU 2016-02 on January 1, 2019.

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 Condensed Consolidated Statements of Operations.

Total operating lease costs by expense type:


	Three Months Ended
(in thousands)		March 31, 2021		March 31, 2020
Operating lease cost included in Other store expenses(1)(2)		$	34,136	$	37,439
Operating lease cost included in Other charges(2)		166		769
Sublease receipts		(3,349)		(2,317)
Total operating lease charges		$	30,953	$	35,891

(1) Includes short-term lease costs, which are not significant.

(2) Excludes variable lease costs of $8.5 million and $8.9 million for the three months ended March 31, 2021 and 2020, respectively.

Supplemental cash flow information related to leases:


	Three Months Ended
(in thousands)	March 31, 2021		March 31, 2020
Cash paid for amounts included in measurement of operating lease liabilities	$	26,572	$	29,881
Cash paid for short-term operating leases not included in operating lease liabilities	4,580		6,736
Right-of-use assets obtained in exchange for new operating lease liabilities	37,923		20,619

Weighted-average discount rate and weighted-average remaining lease term:


(in thousands)	March 31, 2021		December 31, 2020
Weighted-average discount rate(1)	6.5	%	6.8	%
Weighted-average remaining lease term (in years)	4		4

(1) The 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 March 31, 2021:


(In thousands)	Operating Leases
2021	$	84,302
2022	90,915
2023	64,787
2024	46,838
2025	31,296
Thereafter	22,304
Total undiscounted operating lease liabilities	340,442
Less: Interest	(40,550)
Total present value of operating lease liabilities	$	299,892

In response to the COVID-19 pandemic and related government restrictions negatively impacting our operations, we renegotiated approximately 500 store lease agreements in the second quarter of 2020 to obtain rent relief, in order to help offset the negative financial impacts of COVID-19. Lease amendments executed as a result of our renegotiations included near term rent abatements of approximately $2.3 million and rent deferrals of approximately $2.1 million. As of March 31, 2021, remaining unpaid deferred rent associated with these lease amendments was approximately $0.4 million, the majority of which will be repaid in 2021.

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income Tax [Text Block]	Income Taxes The effective tax rate was 13.8% for the three months ended March 31, 2021, compared to (10.6)% in 2020. The effective tax rate for the three months ended March 31, 2021 was impacted by the tax effect of the equity consideration included in the Aggregate Stock Consideration subject to vesting conditions, and discrete income tax items related to excess tax benefits from the vesting of our annual restricted stock award grants and stock option exercises, and the release of domestic and foreign tax valuation allowances. The effective tax rate for the three months ended March 31, 2020 was primarily impacted as a result of the tax benefit of net operating loss carrybacks at a 35% tax rate that became available as a result of the Coronavirus Aid, Relief, and Economic Security Act, enacted on March 27, 2020 (the “CARES Act”).

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Senior debt

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Senior Debt, net

On February 17, 2021, we entered into a credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and lenders party thereto, that provides for a seven-year $875 million senior secured term loan facility (the “Term Loan Facility”) and an Asset Based Loan Credit Facility (the “ABL Credit Facility”) that provides for a five-year asset-based revolving credit facility with commitments of $550 million and a letter of credit sublimit of $150 million. Commitments under the ABL Credit Facility may be increased, at our option and under certain conditions, by up to an additional $125 million in the aggregate.

The amount outstanding under the Term Loan Facility was $875.0 million at March 31, 2021. In addition, we had $55.0 million outstanding under our ABL Credit Facility at March 31, 2021 and borrowing capacity availability of $405.2 million.

Proceeds from the Term Loan Credit Facility were net of original issue discount of $4.4 million upon issuance from the lenders. In addition, in connection with the closing of the Term Loan Credit Facility and the ABL Credit Facility, we incurred approximately $30.2 million in debt issuance costs, including bank financing fees and third party legal and other professional fees, of which $25.3 million was capitalized in accordance with ASC Topic 470, “Debt” and recorded as a reduction of our outstanding Senior debt, net in our Condensed Consolidated Balance Sheet. Remaining debt issuance costs incurred of $4.9 million were expensed and recorded to Other charges in our Condensed Consolidated Statement of Operations. The original issue discount and capitalized debt issuance costs will be amortized as interest expense over the terms of the respective credit agreements. As of March 31, 2021, the total balance of unamortized of debt issuance costs relating to our senior debt, including rollover debt issuance costs from our previous senior debt credit facilities of approximately $3.0 million, and original issue discount reported in the Condensed Consolidated Balance Sheet were $27.8 million and $4.3 million, respectively.

We also utilize the ABL Credit Facility for the issuance of letters of credit. As of March 31, 2021, we have issued letters of credit in the aggregate outstanding amount of $89.8 million primarily relating to workers compensation insurance claims.

Term Loan Credit Agreement

The Term Loan Facility, which matures on February 17, 2028, amortizes in equal quarterly installments at a rate of 1.00% per annum of the original principal amount thereof, with the remaining balance due at final maturity. Subject in each case to certain restrictions and conditions, we may add up to $500 million of incremental term loan facilities to the Term Loan Facility or utilize incremental capacity under the Term Loan Facility at any time by issuing or incurring incremental equivalent term debt.

Interest on borrowings under the Term Loan Facility is payable at a fluctuating rate of interest determined by reference to the eurodollar rate plus an applicable margin of 4.00%, subject to a 0.75% LIBOR floor. Borrowings under the Term Loan Facility amortize in equal quarterly installments in an amount equal to 1.000% per annum of the original aggregate principal amount thereof, with the remaining balance due at final maturity.

The Term Loan Facility is secured by a first-priority security interest in substantially all of our present and future tangible and intangible personal property, including our subsidiary guarantors, other than the ABL Priority Collateral (as defined below), and by a second-priority security interest in the ABL Priority Collateral, subject to certain exceptions. The obligations under the Term Loan Facility are guaranteed by us and our material wholly-owned domestic restricted subsidiaries that also guarantee the ABL Credit Facility.

The Term Loan Facility contains covenants that are usual and customary for similar facilities and transactions and that, among other things, restrict our ability and our restricted subsidiaries to create certain liens and enter into certain sale and lease-back transactions; create, assume, incur or guarantee certain indebtedness; consolidate or merge with, or convey, transfer or lease all or substantially all of our and our restricted subsidiaries’ assets, to another person; pay dividends or make other distributions on, or repurchase or redeem, our capital stock or certain other debt; and make other restricted payments. The Term Loan Facility also includes mandatory prepayment requirements related to asset sales (subject to reinvestment), debt incurrence (other than permitted debt) and excess cash flow, subject to certain limitations described therein. Any voluntary prepayment of the Term Loan Facility made using proceeds from a substantially concurrent incurrence of indebtedness and in connection with a repricing transaction in the first six months following the closing date of the Acquisition will be subject to a 1.00% prepayment premium, except that no such prepayment premium will be required in connection with a change of control or a transformative acquisition. These covenants are subject to a number of limitations and exceptions set forth in the documentation governing the Term Loan.

The Term Loan provides for customary events of default, including, but not limited to, failure to pay principal and interest, failure to comply with covenants, agreements or conditions, and certain events of bankruptcy or insolvency involving us and our significant subsidiaries.

The Term Loan Facility was fully drawn at the closing of the Acima Holdings acquisition to fund a portion of the Aggregate Cash Consideration payable in the transaction, repay certain of our outstanding indebtedness and our subsidiaries, repay all outstanding indebtedness of Acima Holdings and its subsidiaries and pay certain fees and expenses incurred in connection with the transaction. A portion of such proceeds were used to repay $197.5 million outstanding under the prior term loan facility, dated as of August 5, 2019, among us, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders party thereto (the “Prior Term Loan Facility”).

ABL Credit Agreement

The ABL Credit Facility will mature on February 17, 2026. We may borrow only up to the lesser of the level of the then-current borrowing base and the aggregate amount of commitments under the ABL Credit Facility. The borrowing base is tied to the amount of eligible installment sales accounts, inventory and eligible rental contracts, reduced by reserves.

The ABL Credit Facility bears interest at a fluctuating rate determined by reference to the eurodollar rate plus an applicable margin of 1.50% to 2.00%. The total interest rate on the ABL Credit Facility at March 31, 2021 was 2.125%. A commitment fee equal to 0.250% to 0.375% of the unused portion of the ABL Credit Facility fluctuates dependent upon average utilization for the prior month as defined by a pricing grid included in the documentation governing the ABL Credit Facility. The commitment fee at March 31, 2021 was 0.375%. We paid $0.7 million of commitment fees during the first quarter of 2021.

Loans under the ABL Credit Facility may be borrowed, repaid and re-borrowed until February 17, 2026, at which time all amounts borrowed must be repaid. The obligations under the ABL Credit Facility are guaranteed by us and certain of our wholly owned domestic restricted subsidiaries, subject to certain exceptions. The obligations under the ABL Credit Facility and such guarantees are secured on a first-priority basis by all of our and our subsidiary guarantors’ accounts, inventory, deposit accounts, securities accounts, cash and cash equivalents, rental agreements, general intangibles (other than equity interests in our subsidiaries), chattel paper, instruments, documents, letter of credit rights, commercial tort claims related to the foregoing and other related assets and all proceeds thereof related to the foregoing, subject to permitted liens and certain exceptions (such assets, collectively, the “ABL Priority Collateral”) and a second-priority basis in substantially all other present and future tangible and intangible personal property of ours and the subsidiary guarantors, subject to certain exceptions.

The ABL Facility contains covenants that are usual and customary for similar facilities and transactions and that, among other things, restrict our ability and our restricted subsidiaries to create certain liens and enter into certain sale and lease-back transactions; create, assume, incur or guarantee certain indebtedness; consolidate or merge with, or convey, transfer or lease all or substantially all of our and our restricted subsidiaries’ assets, to another person; pay dividends or make other distributions on, or repurchase or redeem, our capital stock or certain other debt; and make other restricted payments.

The ABL Facility also requires the maintenance of a consolidated fixed charge coverage ratio of 1.10 to 1.00 at the end of each fiscal quarter when either (i) certain specified events of default have occurred and are continuing or (ii) availability is less than or equal to the greater of $56.25 million and 15% of the line cap then in effect. These covenants are subject to a number of limitations and exceptions set forth in the documentation governing the ABL Facility. The fixed charge coverage ratio as of March 31, 2021 was 1.99 to 1.00.

The documentation governing the ABL Facility provides for customary events of default, including, but not limited to, failure to pay principal and interest, failure to comply with covenants, agreements or conditions, and certain events of bankruptcy or insolvency involving us and our significant subsidiaries.

The table below shows the scheduled maturity dates of our outstanding debt at March 31, 2021 for each of the years ending December 31:


(in thousands)	Term Loan Facility		ABL Credit Facility		Total
2021	$	6,563	$	—	$	6,563
2022	8,750		—		8,750
2023	8,750		—		8,750
2024	8,750		—		8,750
2025	8,750		—		8,750
Thereafter	833,437		55,000		888,437
Total senior debt	$	875,000	$	55,000	$	930,000

Senior Notes	3 Months Ended
Senior Notes	Mar. 31, 2021
Subsidiary Guarantors - Senior Notes [Abstract]
Senior Notes	Senior NotesOn February 17, 2021, we issued $450 million in senior unsecured notes due February 15, 2029, at par value, bearing interest at 6.375% (the "Notes"), the proceeds of which were used to fund a portion of the Aggregate Cash Consideration upon closing of the Acima Holdings acquisition. Interest on the Notes is payable in arrears on February 15 and August 15 of each year, beginning on August 15, 2021. In connection with the issuance of the Notes, we incurred approximately $15.7 million in debt issuance costs, including bank financing fees and third party legal and other professional fees, which were capitalized in accordance with ASC Topic 470, “Debt” and recorded as a reduction of our outstanding Notes in our Condensed Consolidated Balance Sheet. Debt issuance costs will be amortized as interest expense over the term of the Notes. We may redeem some or all of the Notes at any time on or after February 15, 2024 for cash at the redemption prices set forth in the indenture governing the Notes, plus accrued and unpaid interest to, but not including, the redemption date. Prior to February 15, 2024, we may redeem up to 40% of the aggregate principal amount of the Notes with the proceeds of certain equity offerings at a redemption price of 106.375% plus accrued and unpaid interest to, but not including, the redemption date. In addition, we may redeem some or all of the Notes prior to February 15, 2024, at a redemption price of 100% of the principal amount of the Notes plus accrued and unpaid interest to, but not including, the redemption date, plus a “make-whole” premium. If we experience specific kinds of change of control, we will be required to offer to purchase the Notes at a price equal to 101% of the principal amount thereof plus accrued and unpaid interest. The Notes are our general unsecured senior obligations, and are effectively subordinated to all of our existing and future secured indebtedness to the extent of the value of the collateral securing such indebtedness, structurally subordinated to all existing and future indebtedness and other liabilities of our non-guarantor subsidiaries, equal in right of payment to all of our and our guarantor subsidiaries’ existing and future senior indebtedness and senior in right of payment to all of our future subordinated indebtedness, if any. The Notes are jointly and severally guaranteed on a senior unsecured basis by certain of our domestic subsidiaries that have outstanding indebtedness or guarantee other specified indebtedness, including the ABL Credit Facility and the Term Loan Facility. The indenture governing the Notes contains covenants that limit, among other things, our ability and the ability of some of our restricted subsidiaries to create liens, transfer or sell assets, incur indebtedness or issue certain preferred stock, pay dividends, redeem stock or make other distributions, make other restricted payments or investments, create restrictions on payment of dividends or other amounts to us by our restricted subsidiaries, merge or consolidate with other entities, engage in certain transactions with affiliates and designate our subsidiaries as unrestricted subsidiaries. These covenants are subject to a number of exceptions and qualifications. The covenants limiting restricted payments, restrictions on payment of dividends or other amounts to us by our restricted subsidiaries, the ability to incur indebtedness, asset dispositions and transactions with affiliates will be suspended if and while the Notes have investment grade ratings from any two of Standard & Poor’s Ratings Services, Moody’s Investors Service, Inc. and Fitch, Inc. The indenture governing the Notes also provides for events of default, which, if any of them occurs, would permit or require the principal, premium, if any, and interest on all the then outstanding Notes to be due and payable.

Fair Value (Notes)

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value

We follow a three-tier fair value hierarchy, which classifies the inputs used in measuring fair values, in determining the fair value of our non-financial assets and non-financial liabilities, which consist primarily of goodwill. These tiers include: Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

Our financial instruments include cash and cash equivalents, receivables, payables, borrowings against our ABL Credit Facility and Term Loan Facility, and outstanding Notes. The carrying amount of cash and cash equivalents, receivables and payables approximates fair value at March 31, 2021 and December 31, 2020, because of the short maturities of these instruments. In addition, the interest rates on our Term Loan Facility and ABL Credit Facility are variable and, therefore, we believe the carrying value of outstanding borrowings approximates their fair value.

The fair value of our Notes is based on Level 1 inputs and was as follows at March 31, 2021:


	March 31, 2021
(in thousands)	Carrying Value		Fair Value		Difference
Senior notes	$	450,000	$	477,000	$	27,000

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Other Charges (Notes)

3 Months Ended

Mar. 31, 2021

Restructuring and Related Activities [Abstract]

Other Charges

Other ChargesAcima Holdings Acquisition. As described in Note 2, 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 was 8,096,595 of 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 three months ended March 31, 2021, we recognized approximately $15.9 million in stock compensation expense related to these restricted stock agreements.

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 three months ended March 31, 2021, we recognized approximately $1.3 million in depreciation expense and approximately $14.0 million in amortization expense related to these assets.

Furthermore, during the three months ended March 31, 2021 we recognized approximately $16.4 million in transaction costs associated with the closing of the transaction, and approximately $3.2 million in post-acquisition integration costs, including $2.8 million in employee severance and $0.4 million in reorganization advisory fees.

Activity with respect to Other charges for the three months ended March 31, 2021 is summarized in the below table:


(in thousands)	Accrued Charges at December 31, 2020		Charges & Adjustments		Payments & Adjustments		Accrued Charges at March 31, 2021
Cash charges:
Acima Holdings transaction costs	$	5,005	$	16,406	$	(20,893)	$	518
Acima Holdings integration costs	—		3,244		(447)		2,797


Other cash charges(1)	344		197		(541)		—
Total cash charges	$	5,349	19,847		$	(21,881)	$	3,315
Non-cash charges:
Depreciation and amortization of acquired assets(2)			15,258

Acima Holdings employees stock agreements(3)			15,882
Asset impairments(4)			132

Total other charges			$	51,119

(1) Represents employee severance, shutdown and holding expenses related to store closures.

(2) Represents depreciation recorded on the incremental fair value of acquired software and amortization of the fair value of intangible assets acquired in connection with the acquisition of Acima Holdings as described Note 2.

(3) Represents stock compensation expense recognized in the first quarter of 2021, related to common shares issued to Acima Holdings employees subject to vesting restrictions, as described in Note 2.

(4) Asset impairments primarily includes impairments of operating lease right-of-use assets and other property assets related to the closure of Rent-A-Center Business stores in the first three months of 2021.

Segment Information (Notes)

3 Months Ended

Mar. 31, 2021

Segment Information [Abstract]

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: furniture, including mattresses, tires, consumer electronics, appliances, tools, handbags, computers, and accessories. Smartphones are also offered in our Rent-A-Center Business stores and franchise locations.

Segment information for the three and nine months ended March 31, 2021 and 2020 is as follows:


	Three Months Ended March 31,
(in thousands)		2021		2020
Revenues
Rent-A-Center Business		$	524,866	$	454,965
Acima		457,449		216,127
Mexico		14,498		13,546
Franchising		39,969		17,301
Total revenues		$	1,036,782	$	701,939


	Three Months Ended March 31,
(in thousands)		2021		2020
Gross profit
Rent-A-Center Business		$	359,169	$	317,558
Acima		134,250		88,315
Mexico		10,212		9,528
Franchising		6,892		4,777
Total gross profit		$	510,523	$	420,178


	Three Months Ended March 31,
(in thousands)		2021		2020
Operating profit
Rent-A-Center Business		$	121,277	$	67,943
Acima		24,814		18,222
Mexico		1,954		967
Franchising		4,985		2,519
Total segments		153,030		89,651
Corporate		(82,984)		(40,776)
Total operating profit		$	70,046	$	48,875


	Three Months Ended March 31,
(in thousands)		2021		2020
Depreciation and amortization
Rent-A-Center Business		$	4,577	$	4,957
Acima(1)		474		527
Mexico		120		93
Franchising		16		3
Total segments		5,187		5,580
Corporate(2)		8,206		9,333
Total depreciation and amortization		$	13,393	$	14,913

(1)Excludes amortization of approximately $14.0 million recorded to Other charges in the Condensed Consolidated Statement of Operations, related to intangible assets acquired upon closing of the Acima Holdings acquisition

(2)Excludes depreciation of approximately $1.3 million recorded to Other charges in the Condensed Consolidated Statement of Operations, related to software acquired upon closing of the Acima Holdings acquisition


	Three Months Ended March 31,
(in thousands)		2021		2020
Capital expenditures
Rent-A-Center Business		$	6,257	$	980
Acima		154		84
Mexico		76		37

Total segments		6,487		1,101
Corporate		4,901		8,050
Total capital expenditures		$	11,388	$	9,151


(in thousands)	March 31, 2021		December 31, 2020
On rent rental merchandise, net
Rent-A-Center Business	$	446,180	$	444,945
Acima	651,764		299,660
Mexico	17,969		18,281
Total on rent rental merchandise, net	$	1,115,913	$	762,886


(in thousands)	March 31, 2021		December 31, 2020
Held for rent rental merchandise, net
Rent-A-Center Business	$	127,120	$	136,219
Acima	1,622		2,228
Mexico	6,502		7,819
Total held for rent rental merchandise, net	$	135,244	$	146,266


(in thousands)	March 31, 2021		December 31, 2020
Assets by segment
Rent-A-Center Business	$	978,190	$	999,252
Acima	1,566,395		389,650
Mexico	36,076		42,278
Franchising	16,114		14,729
Total segments	2,596,775		1,445,909
Corporate	410,183		305,071
Total assets	$	3,006,958	$	1,750,980

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Common Stock and Stock-Based Compensation (Notes)	3 Months Ended
Common Stock and Stock-Based Compensation (Notes)	Mar. 31, 2021
Stock-Based Compensation [Abstract]
Stock-Based Compensation	Common Stock and Stock-Based Compensation Under our current common stock repurchase program, our Board of Directors has authorized the purchase, from time to time, in the open market and privately negotiated transactions, up to an aggregate of $75 million of Rent-A-Center common stock. No shares were repurchased during the three months ended March 31, 2021. During the three months ended March 31, 2020, we repurchased 1,461,177 shares of our common stock for an aggregate purchase price of $26.5 million, which included shares having an aggregate purchase price of $10.0 million that were purchased under a repurchase program that was previously authorized by our Board of Directors until its replacement by the current program in March 2020. Under the March 2020 authorization, $58.4 million remains available for repurchases in the open market and privately negotiated transactions. We recognized $4.3 million and $3.0 million in compensation expense related to stock awards issued under the Rent-A-Center 2016 Long-Term Incentive Plan (the “2016 Plan”) during the three months ended March 31, 2021 and 2020, respectively. During the three months ended March 31, 2021, we granted approximately 65,000 stock options, 238,000 market-based performance units and 141,000 time-vesting units under the 2016 Plan. The stock options granted were valued using a Black-Scholes pricing model with the following assumptions: an expected volatility of 47.54% to 52.80%, a risk-free interest rate of 0.21% to 0.47%, an expected dividend yield of 3.24%, and an expected term of 3.50 to 5.75 years. The weighted-average exercise price of the options granted during the three months ended March 31, 2021 was $38.29 and the weighted-average grant-date fair value was $12.20. Performance-based units and time-vesting restricted units were valued using our closing stock price on March 31, 2021. As described in Note 2, Aggregate Stock Consideration issued to the former owners of Acima Holdings included 10,779,923 of common shares valued at $51.14 per share, as of the date of closing. Of this total, 2,683,328 common shares were included in the aggregate purchase price of the transaction for financial reporting purposes, while 8,096,595 common shares, valued at $414.1 million, issued under restricted stock agreements and subject to vesting conditions, will be recognized as stock compensation expense over the vesting term in accordance with ASC Topic 718, “Stock-based Compensation”. We recognized $15.9 million in stock compensation expense related to these restricted stock agreements during the three months ended March 31, 2021, which was recorded to Other charges in our Condensed Consolidated Statements of Operations, as described in Note 10.

Contingencies (Notes)	3 Months Ended
Contingencies (Notes)	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies From time to time, we, along with our subsidiaries, are party to various legal proceedings and governmental inquiries arising in the ordinary course of business. We reserve for loss contingencies that are both probable and reasonably estimable. We regularly monitor developments related to these legal proceedings, and review the adequacy of our legal reserves on a quarterly basis. We do not expect these losses to have a material impact on our condensed consolidated financial statements if and when such losses are incurred. Nevertheless, we cannot predict the impact of future developments affecting our claims and lawsuits, and any resolution of a claim or lawsuit or reserve within a particular fiscal period may materially and adversely impact our results of operations for that period. We are subject to unclaimed property audits by states in the ordinary course of business. The property subject to review in the audit process include unclaimed wages, vendor payments and customer refunds. State escheat laws generally require entities to report and remit abandoned and unclaimed property to the state. Failure to timely report and remit the property can result in assessments that could include interest and penalties, in addition to the payment of the escheat liability itself. We routinely remit escheat payments to states in compliance with applicable escheat laws. Acima Consumer Financial Protection Bureau investigation. Prior to the execution of the definitive agreement to acquire Acima Holdings, Acima Holdings received a Civil Investigative Demand dated October 1, 2020 (the “CID”) from the Consumer Financial Protection Bureau (the “CFPB”) requesting certain information, documents and data relating to Acima Holding’s products, services and practices for the period from January 1, 2015 to the date on which responses to the CID are provided in full. The purpose of the CID is to determine whether Acima Holdings extends credit, offers leases, or otherwise offers or provides a consumer financial product or service and whether Acima Holdings complies with certain consumer financial protection laws. We are fully cooperating with the CFPB investigation. We completed our production of records in response to the existing requests of the CFPB at the end of March 2021. The CFPB has not made any allegations in the investigation, and we are currently unable to predict the eventual scope, ultimate timing or outcome of the CFPB investigation. On the terms and subject to the conditions set forth in the definitive agreement to acquire Acima Holdings, the former owners of Acima Holdings have agreed to indemnify Rent-A-Center for certain losses arising after the consummation of the transaction with respect to the CID and certain pre-closing taxes. The indemnification obligations of the former owners of Acima Holdings are limited to an indemnity holdback in the aggregate amount of $50 million, which was escrowed at the closing of the transaction, and will be Rent-A-Center’s sole recourse against the former owners of Acima Holdings with respect to all of the indemnifiable claims under the definitive transaction agreement. Other than with respect to any pending or unresolved claims for indemnification submitted by Rent-A-Center prior to such time, and subject to other limited exceptions, the escrowed amount will be released to the former owners of Acima Holdings as follows: (i) in respect of the CID, on the earlier of the third anniversary of the closing date of the transaction and the date on which a final determination is entered providing for a resolution of the matters regarding the CID and (ii) in respect of certain pre-closing taxes, on August 18, 2022, the first business day following the date that is 18 months after the closing date of the transaction. There can be no assurance that the CID will be finally resolved prior to the release to the former owners of Acima Holdings of the escrowed funds reserved therefor, or that such escrowed amount will be sufficient to address all covered losses or that the CFPB’s ongoing investigation or future exercise of its enforcement, regulatory, discretionary or other powers will not result in findings or alleged violations of consumer financial protection laws that could lead to enforcement actions, proceedings or litigation, whether by the CFPB, other state or federal agencies, or other parties, and the imposition of damages, fines, penalties, restitution, other monetary liabilities, sanctions, settlements or changes to Acima Holdings’s business practices or operations that could materially and adversely affect our business, financial condition, results of operations or reputation. California Attorney General. The California Attorney General (“CAG”) previously issued an investigative subpoena seeking information with respect to our Acceptance Now business practices (now part of the Acima segment). Since receiving such demand, we have cooperated with the CAG in connection with its investigation and made several productions of requested documents. In March 2020, the CAG put forth proposed settlement terms to address alleged violations of California law. After several rounds of negotiations, in September 2020, the CAG proposed revised terms. In both cases, the proposed settlement terms included civil penalties, disgorgement of certain revenues, additional training requirements, and recommended changes to Acceptance Now business practices. We believe that our business practices are in compliance with California law and are continuing to discuss resolution of the inquiry with the CAG. At this point, while we cannot predict the ultimate outcome, we do not believe any such outcome will have a material impact on our condensed consolidated financial statements.

Earnings Per Common Share (Notes)

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Earnings Per Common Share

Summarized basic and diluted earnings per common share were calculated as follows:


	Three Months Ended March 31,
(in thousands, except per share data)		2021		2020
Numerator:
Net earnings		$	42,552	$	49,292
Denominator:
Weighted-average shares outstanding(1)		56,247		54,774
Effect of dilutive stock awards(2)		10,048		1,378
Weighted-average dilutive shares		66,295		56,152

Basic earnings per common share		$	0.76	$	0.90
Diluted earnings per common share		$	0.64	$	0.88
Anti-dilutive securities excluded from diluted earnings per common share:
Anti-dilutive restricted share units(3)		—		148
Anti-dilutive performance share units(3)		—		519
Anti-dilutive stock options(3)		—		1,357

(1) Weighted-average shares outstanding for the three months ended March 31, 2021 includes approximately 1.3 million weighted-average common shares issued in connection with the acquisition of Acima Holdings in February 2021. See Note 2 for additional information.

(2) Dilutive stock awards for the three months ended March 31, 2021 includes approximately 8.1 million common shares issued in connection with the acquisition of Acima Holdings in February 2021, and subject to vesting conditions under restricted stock agreements.

(3) There were no anti-dilutive stock awards for the three months ended March 31, 2021.

Basis of Presentation (Policies)	3 Months Ended
Basis of Presentation (Policies)	Mar. 31, 2021
Accounting Policies [Abstract]
Principles of Consolidation	These financial statements included herein include the accounts of Rent-A-Center, Inc. and its direct and indirect subsidiaries. All intercompany accounts and transactions have been eliminated.
Newly adopted accounting pronouncements [Policy Text Block]	Newly Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects related to accounting for income taxes. The standard removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. We adopted ASU 2019-12 beginning January 1, 2021 using a prospective approach. Impacts to our financial statements for the three months ended March 31, 2021 resulting from the adoption of this ASU were immaterial.

Acquisitions and Divestitures (Tables)

3 Months Ended

Mar. 31, 2021

Business Combinations [Abstract]

Acquisition assets acquired and liabilities assumed [Table Text Block]

Assets acquired and liabilities assumed in connection with the acquisition have been recorded at their fair values. The following table provides the preliminary estimated fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date:


(in thousands)	February 17, 2021
Aggregate cash consideration	$	1,273,263
Aggregate stock consideration, subject to lockup agreements	120,929
Total Purchase price	$	1,394,192
ASSETS ACQUIRED
Receivables, net(1)	$	30,465
Prepaid expenses and other assets	699
Rental merchandise
On rent	357,692
Property assets	171,455
Operating lease right-of-use assets	9,136
Goodwill	241,774
Other intangible assets	520,000
Total assets acquired	$	1,331,221
LIABILITIES ASSUMED
Accounts payable - trade	16,023
Accrued liabilities	24,277
Operating lease liabilities	9,689
Deferred income taxes	(112,960)
Total liabilities assumed	(62,971)
Total equity value	$	1,394,192

(1) Includes gross contractual receivables of $65.2 million related to merchandise lease contracts, of which we have estimated $35.5 million are uncollectible.

Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

The fair value measurements for acquired intangible assets and developed technology were primarily based on significant unobservable inputs (level 3) developed using company-specific information. Certain fair value estimates were determined based on an independent valuation of the net assets acquired, including $520 million of identifiable intangible assets with an estimated weighted average useful life of 8 years, as follows:


Asset Class	Estimated Fair Value (in thousands)		Estimated Remaining Useful Life (in years)
Merchant relationships	$	380,000	10
Relationship with existing lessees	60,000		1
Trade name	40,000		7
Non-compete agreements	40,000		3

Pro Forma combined results [Table Text Block]

The unaudited pro forma financial information is as follows:


(in thousands)	Three Months Ended March 31, 2021		Three Months Ended March 31, 2020
	(unaudited)		(unaudited)
Pro Forma total revenues	$	1,231,386	$	986,747
Pro Forma net earnings(1)	56,413		(16,966)

(1)Total pro forma adjustments to net earnings for the three months ended March 31, 2021 and March 31, 2020 were decreases of $13.2 million and $106.2 million, respectively.

The amounts of revenue and earnings of Acima Holdings included in our Condensed Consolidated Statements of Operations from the acquisition date of February 17, 2021 are as follows:


(in thousands)	February 17, 2021 - March 31, 2021		February 17, 2020 - March 31, 2020
	(unaudited)		(unaudited)
Total revenues	$	210,569	$	143,439
Net earnings(1)	19,006		21,025

(1)Net Earnings for the period February 17, 2021 - March 31, 2021 includes amortization of intangible assets acquired upon closing of the Acima Holdings acquisition

Revenues Revenues (Tables)

3 Months Ended

Mar. 31, 2021

Revenues [Abstract]

Disaggregation of Revenue [Table Text Block]

The following table disaggregates our revenue for the periods ended March 31, 2021 and 2020:


	Three Months Ended March 31, 2021
	Rent-A-Center Business		Acima		Mexico		Franchising		Consolidated
(In thousands)
Store
Rentals and fees	$	429,301	$	302,526	$	13,707	$	—	$	745,534
Merchandise sales	77,378		154,630		785		—		232,793
Installment sales	17,773		—		—		—		17,773
Other	414		293		6		205		918
Total store revenues	524,866		457,449		14,498		205		997,018
Franchise
Merchandise sales	—		—		—		33,055		33,055
Royalty income and fees	—		—		—		6,709		6,709
Total revenues	$	524,866	$	457,449	$	14,498	$	39,969	$	1,036,782


	Three Months Ended March 31, 2020
	Rent-A-Center Business		Acima		Mexico		Franchising		Consolidated
(In thousands)
Store
Rentals and fees	$	393,165	$	161,998	$	12,837	$	—	$	568,000
Merchandise sales	46,687		53,988		705		—		101,380
Installment sales	14,747		—		—		—		14,747
Other	366		141		4		211		722
Total store revenues	454,965		216,127		13,546		211		684,849
Franchise
Merchandise sales	—		—		—		12,437		12,437
Royalty income and fees	—		—		—		4,653		4,653
Total revenues	$	454,965	$	216,127	$	13,546	$	17,301	$	701,939

Receivables and Allowance for Doubtful Accounts (Tables)

3 Months Ended

Mar. 31, 2021

Receivables and Allowance for Doubtful Accounts [Abstract]

Receivables [Table Text Block]

Receivables consist of the following:


(In thousands)	March 31, 2021		December 31, 2020
Installment sales receivables	$	60,798	$	61,794
Trade and notes receivables	62,528		36,256

Total receivables	123,326		98,050
Less allowance for doubtful accounts	(7,981)		(8,047)
Total receivables, net of allowance for doubtful accounts	$	115,345	$	90,003

Changes in allowance for doubtful accounts [Table Text Block]

Changes in our allowance for doubtful accounts are as follows:


(In thousands)	March 31, 2021
Beginning allowance for doubtful accounts	$	8,047
Bad debt expense (1)	3,449

Accounts written off, net of recoveries	(3,515)
Ending allowance for doubtful accounts	$	7,981

(1) Uncollectible installment payments, franchisee obligations, and other corporate receivables are recognized in other store operating expenses in our condensed consolidated financial statements.

Leases (Tables)

3 Months Ended

Mar. 31, 2021

Leases [Abstract]

Operating lease costs [Table Text Block]

Total operating lease costs by expense type:


	Three Months Ended
(in thousands)		March 31, 2021		March 31, 2020
Operating lease cost included in Other store expenses(1)(2)		$	34,136	$	37,439
Operating lease cost included in Other charges(2)		166		769
Sublease receipts		(3,349)		(2,317)
Total operating lease charges		$	30,953	$	35,891

(1) Includes short-term lease costs, which are not significant.

(2) Excludes variable lease costs of $8.5 million and $8.9 million for the three months ended March 31, 2021 and 2020, respectively.

Supplemental cash flow information related to leases:


	Three Months Ended
(in thousands)	March 31, 2021		March 31, 2020
Cash paid for amounts included in measurement of operating lease liabilities	$	26,572	$	29,881
Cash paid for short-term operating leases not included in operating lease liabilities	4,580		6,736
Right-of-use assets obtained in exchange for new operating lease liabilities	37,923		20,619

Weighted-average discount rate and weighted-average remaining lease term:


(in thousands)	March 31, 2021		December 31, 2020
Weighted-average discount rate(1)	6.5	%	6.8	%
Weighted-average remaining lease term (in years)	4		4

(1) The January 1, 2019 incremental borrowing rate was used for leases in existence at the time of adoption of ASU 2016-02.

Operating lease liability maturity [Table Text Block]

Reconciliation of undiscounted operating lease liabilities to the present value operating lease liabilities at March 31, 2021:


(In thousands)	Operating Leases
2021	$	84,302
2022	90,915
2023	64,787
2024	46,838
2025	31,296
Thereafter	22,304
Total undiscounted operating lease liabilities	340,442
Less: Interest	(40,550)
Total present value of operating lease liabilities	$	299,892

Senior debt (Tables)

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Schedule of Maturities of Long-term Debt [Table Text Block]

The table below shows the scheduled maturity dates of our outstanding debt at March 31, 2021 for each of the years ending December 31:


(in thousands)	Term Loan Facility		ABL Credit Facility		Total
2021	$	6,563	$	—	$	6,563
2022	8,750		—		8,750
2023	8,750		—		8,750
2024	8,750		—		8,750
2025	8,750		—		8,750
Thereafter	833,437		55,000		888,437
Total senior debt	$	875,000	$	55,000	$	930,000

Fair Value Measures and Disclosures (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements Nonrecurring [Text Block]

The fair value of our Notes is based on Level 1 inputs and was as follows at March 31, 2021:


	March 31, 2021
(in thousands)	Carrying Value		Fair Value		Difference
Senior notes	$	450,000	$	477,000	$	27,000

Other Charges (Tables)

3 Months Ended

Mar. 31, 2021

Restructuring and Related Activities [Abstract]

Other Charges [Table Text Block]

Activity with respect to Other charges for the three months ended March 31, 2021 is summarized in the below table:


(in thousands)	Accrued Charges at December 31, 2020		Charges & Adjustments		Payments & Adjustments		Accrued Charges at March 31, 2021
Cash charges:
Acima Holdings transaction costs	$	5,005	$	16,406	$	(20,893)	$	518
Acima Holdings integration costs	—		3,244		(447)		2,797


Other cash charges(1)	344		197		(541)		—
Total cash charges	$	5,349	19,847		$	(21,881)	$	3,315
Non-cash charges:
Depreciation and amortization of acquired assets(2)			15,258

Acima Holdings employees stock agreements(3)			15,882
Asset impairments(4)			132

Total other charges			$	51,119

(1) Represents employee severance, shutdown and holding expenses related to store closures.

(3) Represents stock compensation expense recognized in the first quarter of 2021, related to common shares issued to Acima Holdings employees subject to vesting restrictions, as described in Note 2.

Segment Information (Tables)

3 Months Ended

Mar. 31, 2021

Segment Information [Abstract]

Segment Information

Segment information for the three and nine months ended March 31, 2021 and 2020 is as follows:


	Three Months Ended March 31,
(in thousands)		2021		2020
Revenues
Rent-A-Center Business		$	524,866	$	454,965
Acima		457,449		216,127
Mexico		14,498		13,546
Franchising		39,969		17,301
Total revenues		$	1,036,782	$	701,939


	Three Months Ended March 31,
(in thousands)		2021		2020
Gross profit
Rent-A-Center Business		$	359,169	$	317,558
Acima		134,250		88,315
Mexico		10,212		9,528
Franchising		6,892		4,777
Total gross profit		$	510,523	$	420,178


	Three Months Ended March 31,
(in thousands)		2021		2020
Operating profit
Rent-A-Center Business		$	121,277	$	67,943
Acima		24,814		18,222
Mexico		1,954		967
Franchising		4,985		2,519
Total segments		153,030		89,651
Corporate		(82,984)		(40,776)
Total operating profit		$	70,046	$	48,875


	Three Months Ended March 31,
(in thousands)		2021		2020
Depreciation and amortization
Rent-A-Center Business		$	4,577	$	4,957
Acima(1)		474		527
Mexico		120		93
Franchising		16		3
Total segments		5,187		5,580
Corporate(2)		8,206		9,333
Total depreciation and amortization		$	13,393	$	14,913


	Three Months Ended March 31,
(in thousands)		2021		2020
Capital expenditures
Rent-A-Center Business		$	6,257	$	980
Acima		154		84
Mexico		76		37

Total segments		6,487		1,101
Corporate		4,901		8,050
Total capital expenditures		$	11,388	$	9,151


(in thousands)	March 31, 2021		December 31, 2020
On rent rental merchandise, net
Rent-A-Center Business	$	446,180	$	444,945
Acima	651,764		299,660
Mexico	17,969		18,281
Total on rent rental merchandise, net	$	1,115,913	$	762,886


(in thousands)	March 31, 2021		December 31, 2020
Held for rent rental merchandise, net
Rent-A-Center Business	$	127,120	$	136,219
Acima	1,622		2,228
Mexico	6,502		7,819
Total held for rent rental merchandise, net	$	135,244	$	146,266


(in thousands)	March 31, 2021		December 31, 2020
Assets by segment
Rent-A-Center Business	$	978,190	$	999,252
Acima	1,566,395		389,650
Mexico	36,076		42,278
Franchising	16,114		14,729
Total segments	2,596,775		1,445,909
Corporate	410,183		305,071
Total assets	$	3,006,958	$	1,750,980

Earnings Per Common Share (Tables)

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Earnings Per Common Share

Summarized basic and diluted earnings per common share were calculated as follows:


	Three Months Ended March 31,
(in thousands, except per share data)		2021		2020
Numerator:
Net earnings		$	42,552	$	49,292
Denominator:
Weighted-average shares outstanding(1)		56,247		54,774
Effect of dilutive stock awards(2)		10,048		1,378
Weighted-average dilutive shares		66,295		56,152

Basic earnings per common share		$	0.76	$	0.90
Diluted earnings per common share		$	0.64	$	0.88
Anti-dilutive securities excluded from diluted earnings per common share:
Anti-dilutive restricted share units(3)		—		148
Anti-dilutive performance share units(3)		—		519
Anti-dilutive stock options(3)		—		1,357

(3) There were no anti-dilutive stock awards for the three months ended March 31, 2021.

Acquisitions and Divestitures (Details) - USD ($) $ / shares in Units, $ in Thousands			1 Months Ended		3 Months Ended
	Feb. 17, 2021	Dec. 20, 2020	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Business Acquisition [Line Items]
Deferred tax liability			$ 71,257		$ 71,257		$ 176,410
Goodwill			311,991		311,991		70,217
Accrued liabilities			381,265		381,265		320,583
Gross receivables			123,326		123,326		98,050
Allowance for doubtful accounts			7,981		7,981		$ 8,047
Operating Expenses					440,477	$ 371,303
Total revenues					1,036,782	701,939
Net earnings					42,552	49,292
Pro Forma [Member]
Business Acquisition [Line Items]
Operating Expenses					13,200	106,200
Acima Holdings [Member]
Business Acquisition [Line Items]
Acquired entity		Acima Holdings
Purchase price	$ 1,394,192	$ 1,650,000
Cash consideration	1,273,263	$ 1,300,000
Common stock consideration		10.8 million shares
Stock consideration, value	$ 120,929	$ 377,000
Acquisition date	Feb. 17, 2021
Description of acquired entity	Acima Holdings is a leading platform offering customers virtual lease-to-own solutions at the point-of-sale via web and mobile technology
Stock consideration, shares	10,779,923
Common stock price	$ 51.14
Receivables, net	$ 30,465
Prepaid expenses and other assets	699
Rental merchandise, net - On rent	357,692
Property assets, net	171,455
Operating lease right-of-use assets	9,136
Goodwill	241,774
Other intangible assets, net	520,000
Total assets acquired	1,331,221
Accounts payable - trade	16,023
Accrued liabilities	24,277
Operating lease liabilities	9,689
Deferred income taxes	(112,960)
Total liabilities assumed	(62,971)
Total equity value	1,394,192
Gross receivables	65,200
Allowance for doubtful accounts	$ 35,500
Intangible assets remaining lives	8 years
Description of goodwill recognized	which consists of the excess of the net purchase price over the fair value of the net assets acquired and assembled workforce of $10 million. Goodwill represents expected cost and revenue synergies and other benefits expected to result within our retail partner business from the acquisition of Acima Holdings.
Acquisition related expenses	$ 22,500
Deferred tax asset	7,600
Pro Forma total revenues					1,231,386	986,747
Pro Forma net earnings					$ 56,413	$ (16,966)
Total revenues			210,569	$ 143,439
Net earnings			$ 19,006	$ 21,025
Acima Holdings [Member] \| Software [Member]
Business Acquisition [Line Items]
Property assets, net	170,000
Acima Holdings [Member] \| Merchant relationships [Member]
Business Acquisition [Line Items]
Other intangible assets, net	$ 380,000
Intangible assets remaining lives	10 years
Acima Holdings [Member] \| Relationship with existing lessees [Member]
Business Acquisition [Line Items]
Other intangible assets, net	$ 60,000
Intangible assets remaining lives	1 year
Acima Holdings [Member] \| Trade name [Member]
Business Acquisition [Line Items]
Other intangible assets, net	$ 40,000
Intangible assets remaining lives	7 years
Acima Holdings [Member] \| Non-compete agreements [Member]
Business Acquisition [Line Items]
Other intangible assets, net	$ 40,000
Intangible assets remaining lives	3 years
Acima Holdings [Member] \| Share-based Payment Arrangement [Member]
Business Acquisition [Line Items]
Stock consideration, shares	2,683,328
Acima Holdings [Member] \| Restricted Stock Units [Member]
Business Acquisition [Line Items]
Stock consideration, value	$ 414,100
Stock consideration, shares	8,096,595
Deferred tax liability	$ 103,500

Revenues Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
Revenues Revenues (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Rentals and fees	$ 745,534	$ 568,000
Merchandise sales	232,793	101,380
Installment sales	17,773	14,747
Other	918	722
Total store revenues	997,018	684,849
Merchandise sales	33,055	12,437
Royalty income and fees	6,709	4,653
Total revenues	1,036,782	701,939
Franchise fees [Member]
Disaggregation of Revenue [Line Items]
Deferred revenue	4,700		$ 4,700
Other product plans [Member]
Disaggregation of Revenue [Line Items]
Deferred revenue	2,900		3,100
Rental purchase agreements [Member]
Disaggregation of Revenue [Line Items]
Deferred revenue	58,300		$ 45,800
Rent-A-Center Business [Member]
Disaggregation of Revenue [Line Items]
Rentals and fees	429,301	393,165
Merchandise sales	77,378	46,687
Installment sales	17,773	14,747
Other	414	366
Total store revenues	524,866	454,965
Merchandise sales	0	0
Royalty income and fees	0	0
Total revenues	524,866	454,965
Acima [Member]
Disaggregation of Revenue [Line Items]
Rentals and fees	302,526	161,998
Merchandise sales	154,630	53,988
Installment sales	0	0
Other	293	141
Total store revenues	457,449	216,127
Merchandise sales	0	0
Royalty income and fees	0	0
Total revenues	457,449	216,127
Mexico [Member]
Disaggregation of Revenue [Line Items]
Rentals and fees	13,707	12,837
Merchandise sales	785	705
Installment sales	0	0
Other	6	4
Total store revenues	14,498	13,546
Merchandise sales	0	0
Royalty income and fees	0	0
Total revenues	14,498	13,546
Franchising [Member]
Disaggregation of Revenue [Line Items]
Rentals and fees	0	0
Merchandise sales	0	0
Installment sales	0	0
Other	205	211
Total store revenues	205	211
Merchandise sales	33,055	12,437
Royalty income and fees	6,709	4,653
Total revenues	$ 39,969	$ 17,301

Receivables and Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Receivables [Line Items]
Interest paid on installment agreements	$ 3,100	$ 2,800
Gross receivables	123,326		$ 98,050
Receivables, net of allowance for doubtful accounts of $7,981 and $8,047 in 2021 and 2020, respectively	115,345		90,003
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for doubtful accounts	7,981		8,047
Bad debt expense	3,449
Accounts written off, net of recoveries	(3,515)
Installment sales receivable [Member]
Receivables [Line Items]
Gross receivables	60,798		61,794
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for doubtful accounts	7,000		7,000
Trade and notes receivables [Member]
Receivables [Line Items]
Gross receivables	62,528		36,256
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for doubtful accounts	$ 1,000		$ 1,000

Leases (Details) $ in Thousands	3 Months Ended		12 Months Ended
Leases (Details) $ in Thousands	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($) store
Lessee, Lease, Description [Line Items]
Operating lease charges	$ 30,953	$ 35,891
Sublease receipts	(3,349)	(2,317)
Variable lease cost	8,500	8,900
Cash paid for amounts included in measurement of operating lease liabilities	26,572	29,881
Cash paid for short-term operating leases not included in operating lease liabilities	4,580	6,736
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 37,923	20,619
Weighted-average discount rate	6.50%		6.80%
Weighted average remaining lease term (in years)	4 years		4 years
2021	$ 84,302
2022	90,915
2023	64,787
2024	46,838
2025	31,296
Thereafter	22,304
Total undiscounted operating lease liabilities	340,442
Less: Interest	(40,550)
Operating lease liabilities	299,892		$ 285,354
Operating lease, number of units \| store			500
Abatement [Member]
Lessee, Lease, Description [Line Items]
Payments for Rent	400		$ 2,300
Deferral [Member]
Lessee, Lease, Description [Line Items]
Payments for Rent			$ 2,100
Other store expenses [Member]
Lessee, Lease, Description [Line Items]
Operating lease charges	34,136	37,439
Other charges [Member]
Lessee, Lease, Description [Line Items]
Operating lease charges	$ 166	$ 769

Income Taxes (Details)	3 Months Ended
Income Taxes (Details)	Mar. 31, 2021	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Effective tax rate	13.80%	(10.60%)

Senior debt (Details) - USD ($)		3 Months Ended
Senior debt (Details) - USD ($)	Feb. 17, 2021	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Debt Instrument [Line Items]
Senior debt, net		$ 930,000,000
Original issue discount	$ 4,400,000
Debt issuance costs	$ 30,200,000
Other charges		51,119,000	$ 1,703,000
Letters of credit, amount outstanding		$ 89,800,000
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage		0.375%
Line of credit commitment fee		$ 700,000
2021		6,563,000
2022		8,750,000
2023		8,750,000
2024		8,750,000
2025		8,750,000
Thereafter		888,437,000
Acima Holdings [Member]
Debt Instrument [Line Items]
Stock consideration, shares	10,779,923
Acima Holdings [Member] \| Restricted Stock Units [Member]
Debt Instrument [Line Items]
Stock consideration, shares	8,096,595
Debt Issuance Costs [Member]
Debt Instrument [Line Items]
Unamortized Debt Issuance Expense	$ 25,300,000	27,800,000		$ 3,000,000.0
Other charges		4,900,000
Original Issue Discount [Member]
Debt Instrument [Line Items]
Unamortized Debt Issuance Expense		4,300,000
Term loan credit [Member]
Debt Instrument [Line Items]
Senior secured term loan facility	875,000,000
Senior debt, net		$ 875,000,000		$ 197,500,000
Debt Instrument, Maturity Date		Feb. 17, 2028
Debt Instrument, Frequency of Periodic Payment		quarterly
Debt Instrument, Periodic Payment, Percent		1.00%
2021		$ 6,563,000
2022		8,750,000
2023		8,750,000
2024		8,750,000
2025		8,750,000
Thereafter		$ 833,437,000
Term loan credit [Member] \| Eurodollar [Member]
Debt Instrument [Line Items]
Basis margin on variable rate		4.00%
Term loan credit [Member] \| LIBOR [Member]
Debt Instrument [Line Items]
Basis margin on variable rate		0.75%
ABL credit facility [Member]
Debt Instrument [Line Items]
Revolving credit facility commitments	$ 550,000,000
Senior debt, net		$ 55,000,000.0
ABL Credit Facility amount available		$ 405,200,000
Debt Instrument, Maturity Date		Feb. 17, 2026
Actual margin on variable rate		2.125%
Required consolidated fixed charge coverage ratio, minimum		1.10
Actual fixed charge coverage ratio		1.99
2021		$ 0
2022		0
2023		0
2024		0
2025		0
Thereafter		$ 55,000,000
Maximum [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage		0.375%
Maximum [Member] \| ABL credit facility [Member] \| Eurodollar [Member]
Debt Instrument [Line Items]
Basis margin on variable rate		2.00%
Minimum [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage		0.25%
Minimum [Member] \| ABL credit facility [Member] \| Eurodollar [Member]
Debt Instrument [Line Items]
Basis margin on variable rate		1.50%

Senior Notes (Details) - Senior Notes [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Feb. 17, 2021
Senior Notes [Line Items]
Initial borrowing in senior notes	$ 450,000	$ 450,000
Unamortized Debt Issuance Expense		$ 15,700
Debt Instrument, Redemption Price, Percentage	106.375%

Fair Value (Details) - Senior Notes [Member] - USD ($) $ in Thousands	Mar. 31, 2021	Feb. 17, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Initial borrowing in senior notes	$ 450,000	$ 450,000
Fair value	477,000
Difference	$ 27,000

Other Charges (Details) - USD ($) $ in Thousands		3 Months Ended
Other Charges (Details) - USD ($) $ in Thousands	Feb. 17, 2021	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Dec. 20, 2020
Restructuring Cost and Reserve [Line Items]
Depreciation of property assets		$ 14,459	$ 14,597
Charges & Adjustments		19,847
Accrued Charges		3,315		$ 5,349
Payments & Adjustments		(21,881)
Depreciation and amortization		13,393	14,913
Share-based Payment Arrangement, Noncash Expense		20,148	3,043
Asset impairments		132
Other charges		51,119	$ 1,703
Other Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Charges & Adjustments		197
Accrued Charges		0		344
Payments & Adjustments		(541)
Acima Holdings [Member]
Restructuring Cost and Reserve [Line Items]
Stock consideration, shares	10,779,923
Stock consideration, value	$ 120,929				$ 377,000
Other intangible assets, net	520,000
Property assets, net	$ 171,455
Depreciation of property assets		1,300
Amortization		14,000
Depreciation and amortization		15,258
Share-based Payment Arrangement, Noncash Expense		15,882
Acima Holdings [Member] \| Restricted Stock Units [Member]
Restructuring Cost and Reserve [Line Items]
Stock consideration, shares	8,096,595
Stock consideration, value	$ 414,100
Acima Holdings [Member] \| Software [Member]
Restructuring Cost and Reserve [Line Items]
Property assets, net	$ 170,000
Acima Holdings [Member] \| Transaction costs [Member]
Restructuring Cost and Reserve [Line Items]
Charges & Adjustments		16,406
Accrued Charges		518		5,005
Payments & Adjustments		(20,893)
Acima Holdings [Member] \| Integration costs [Member]
Restructuring Cost and Reserve [Line Items]
Charges & Adjustments		3,244
Accrued Charges		2,797		$ 0
Payments & Adjustments		(447)
Acima Holdings [Member] \| Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Charges & Adjustments		2,800
Acima Holdings [Member] \| Incremental legal and professional fees [Member]
Restructuring Cost and Reserve [Line Items]
Charges & Adjustments		$ 400

Segment Information (Details) - USD ($) $ in Thousands		1 Months Ended		3 Months Ended
Segment Information (Details) - USD ($) $ in Thousands	Feb. 17, 2021	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Segment Reporting Information [Line Items]
Total revenues				$ 1,036,782	$ 701,939
Gross profit				510,523	420,178
Operating profit				70,046	48,875
Depreciation and amortization				13,393	14,913
Capital expenditures				11,388	9,151
On rent		$ 1,115,913		1,115,913		$ 762,886
Rental merchandise held for rent, net		135,244		135,244		146,266
Assets		3,006,958		3,006,958		1,750,980
Depreciation of property assets				$ 14,459	$ 14,597
Weighted-average shares outstanding				56,247,000	54,774,000
Acima Holdings [Member]
Segment Reporting Information [Line Items]
Total revenues		210,569	$ 143,439
Amortization				$ 14,000
Depreciation of property assets				$ 1,300
Stock consideration, shares	10,779,923
Weighted-average shares outstanding				1,300,000
Rent-A-Center Business [Member]
Segment Reporting Information [Line Items]
Total revenues				$ 524,866	$ 454,965
Gross profit				359,169	317,558
Operating profit				121,277	67,943
Depreciation and amortization				4,577	4,957
Capital expenditures				6,257	980
On rent		446,180		446,180		444,945
Rental merchandise held for rent, net		127,120		127,120		136,219
Assets		978,190		978,190		999,252
Acima [Member]
Segment Reporting Information [Line Items]
Total revenues				457,449	216,127
Gross profit				134,250	88,315
Operating profit				24,814	18,222
Depreciation and amortization				474	527
Capital expenditures				154	84
On rent		651,764		651,764		299,660
Rental merchandise held for rent, net		1,622		1,622		2,228
Assets		1,566,395		1,566,395		389,650
Mexico [Member]
Segment Reporting Information [Line Items]
Total revenues				14,498	13,546
Gross profit				10,212	9,528
Operating profit				1,954	967
Depreciation and amortization				120	93
Capital expenditures				76	37
On rent		17,969		17,969		18,281
Rental merchandise held for rent, net		6,502		6,502		7,819
Assets		36,076		36,076		42,278
Franchising [Member]
Segment Reporting Information [Line Items]
Total revenues				39,969	17,301
Gross profit				6,892	4,777
Operating profit				4,985	2,519
Depreciation and amortization				16	3
Assets		16,114		16,114		14,729
Total Segments [Member]
Segment Reporting Information [Line Items]
Operating profit				153,030	89,651
Depreciation and amortization				5,187	5,580
Capital expenditures				6,487	1,101
Assets		2,596,775		2,596,775		1,445,909
Corporate [Member]
Segment Reporting Information [Line Items]
Operating profit				(82,984)	(40,776)
Depreciation and amortization				8,206	9,333
Capital expenditures				4,901	$ 8,050
Assets		$ 410,183		$ 410,183		$ 305,071

Common Stock and Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Feb. 17, 2021	Mar. 31, 2021	Mar. 31, 2020	Dec. 20, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Repurchase Program, Authorized Amount		$ 75,000
Treasury Stock, Shares, Acquired		0	1,461,177
Purchase of treasury stock			$ 26,525
Purchase of treasury stock, previous plan			10,000
Remaining Authorized Repurchase Amount		$ 58,400
Stock-based compensation expense		$ 20,148	$ 3,043
Stock options granted		65,000
Performance-based restricted stock units granted		238,000
Time-vesting restricted stock units granted		141,000
Expected volatility rate, minimum		47.54%
Expected volatility rate, maximum		52.80%
Risk free interest rate, minimum		0.21%
Risk free interest rate, maximum		0.47%
Weighted average exercise price of options granted		$ 38.29
Weighted average grant date fair value of options granted		$ 12.20
Acima Holdings [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		$ 15,882
Stock consideration, shares	10,779,923
Common stock price	$ 51.14
Stock consideration, value	$ 120,929			$ 377,000
Acima Holdings [Member] \| Share-based Payment Arrangement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock consideration, shares	2,683,328
Acima Holdings [Member] \| Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock consideration, shares	8,096,595
Stock consideration, value	$ 414,100
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield		3.24%
Expected term		3 years 6 months
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield		3.24%
Expected term		5 years 9 months
2016 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		$ 4,300

Contingencies (Details) $ in Thousands	Mar. 31, 2021 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Escrow Deposit	$ 50,000

Earnings Per Common Share Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended		3 Months Ended
	Feb. 17, 2021	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Earnings Per Common Share
Net earnings				$ 42,552	$ 49,292
Weighted-average shares outstanding				56,247,000	54,774,000
Effect of dilutive stock awards				10,048,000	1,378,000
Weighted-average dilutive shares				66,295,000	56,152,000
Basic earnings per common share				$ 0.76	$ 0.90
Diluted earnings per common share				$ 0.64	$ 0.88
Acima Holdings [Member]
Earnings Per Common Share
Net earnings		$ 19,006	$ 21,025
Weighted-average shares outstanding				1,300,000
Stock consideration, shares	10,779,923
Acima Holdings [Member] \| Restricted Stock Units [Member]
Earnings Per Common Share
Stock consideration, shares	8,096,595
Retained Earnings [Member]
Earnings Per Common Share
Net earnings				$ 42,552	$ 49,292
Performance-based restricted stock units [Member]
Earnings Per Common Share
Anti-dilutive securities				0	519,000
Stock options [Member]
Earnings Per Common Share
Anti-dilutive securities				0	1,357,000
Restricted share units [Member]
Earnings Per Common Share
Anti-dilutive securities				0	148,000