Upbound (UPBD) 10-Q 4 May 23 2023 Q1 Quarterly report Financial data

Document and Company Informatio

Document and Company Information - shares	3 Months Ended
	Mar. 31, 2023	Apr. 27, 2023
Document And Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Entity Registrant Name	Upbound Group, Inc.
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	UPBD
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		55,933,492
Entity Central Index Key	0000933036
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Store
Rentals and fees	$ 806,717	$ 883,047
Merchandise sales	162,989	232,881
Installment sales	15,847	17,089
Other	1,445	1,290
Total store revenues	986,998	1,134,307
Franchise
Merchandise sales	22,827	18,521
Royalty income and fees	6,236	6,894
Total revenues	1,016,061	1,159,722
Store
Cost of rentals and fees	297,146	338,633
Cost of merchandise sold	184,260	250,331
Cost of installment sales	5,619	5,921
Total cost of store revenues	487,025	594,885
Franchise cost of merchandise sold	22,772	18,742
Total cost of revenues	509,797	613,627
Gross profit	506,264	546,095
Store expenses
Labor	156,489	166,603
Other store expenses	196,711	227,369
General and administrative expenses	47,726	56,403
Depreciation and amortization	12,881	14,529
Other charges	127,570	70,148
Total operating expenses	541,377	535,052
Operating (loss) profit	(35,113)	11,043
Interest expense	28,100	18,970
Interest income	(420)	(45)
Loss before income taxes	(62,793)	(7,882)
Income tax benefit	(110,123)	(3,645)
Net earnings (loss)	$ 47,330	$ (4,237)
Basic earnings (loss) per common share	$ 0.86	$ (0.08)
Diluted earnings (loss) per common share	0.84	(0.08)
Cash dividends declared per common share	$ 0.34	$ 0.34

Condensed Consolidated Statem_2

Condensed Consolidated Statement of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Condensed Consolidated Statements of Comprehensive Income [Abstract]
Net earnings (loss)	$ 47,330	$ (4,237)
Foreign currency translation adjustments, net of tax of $825 and $176 for the three months ended March 31, 2023 and 2022, respectively	3,104	661
Total other comprehensive income	3,104	661
Comprehensive income (loss)	$ 50,434	$ (3,576)

Condensed Consolidated Statem_3

Condensed Consolidated Statement of Comprehensive Income (Loss) (Parenthetical) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Foreign Currency Translation Tax Adjustment	$ 825,000	$ 176,000

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
ASSETS
Cash and cash equivalents	$ 171,698	$ 144,141
Receivables, net of allowance for doubtful accounts of $12,937 and $13,214 in 2023 and 2022, respectively	101,772	111,865
Prepaid expenses and other assets	44,833	46,070
Rental merchandise, net
On rent	943,487	989,869
Held for rent	126,762	134,959
Merchandise held for installment sale	6,105	6,988
Property assets, net of accumulated depreciation of $592,048 and $576,675 in 2023 and 2022, respectively	287,961	295,371
Operating lease right-of-use assets	300,731	302,311
Deferred tax asset	123,111	82,886
Goodwill	289,750	289,750
Other intangible assets, net	344,915	359,409
Total assets	2,741,125	2,763,619
LIABILITIES
Accounts payable – trade	118,655	155,449
Accrued liabilities	319,675	320,624
Operating lease liabilities	304,063	305,556
Deferred tax liability	0	87,986
Senior debt, net	889,950	930,902
Senior notes, net	438,440	437,956
Total liabilities	2,070,783	2,238,473
STOCKHOLDERS' EQUITY
Common stock, $0.01 par value; 250,000,000 shares authorized; 125,286,720 and 125,028,169 shares issued in March 31, 2023 and December 31, 2022, respectively	1,112	1,080
Additional paid-in capital	1,411,892	1,298,094
Retained earnings	1,105,451	1,077,189
Treasury stock at cost, 69,354,651 shares in March 31, 2023 and December 31, 2022	(1,840,591)	(1,840,591)
Accumulated other comprehensive loss	(7,522)	(10,626)
Total Stockholders' Equity	670,342	525,146
Total Liabilities and Stockholders' Equity	$ 2,741,125	$ 2,763,619

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 12,937	$ 13,214
Property assets, accumulated depreciation	$ 592,048	$ 576,675
Common Stock, Shares Authorized	250,000,000	250,000,000
Common Stock, Shares, Issued	125,286,720	125,028,169
Treasury Stock, Shares	69,354,651	69,354,651
Common Stock, Par Value Per Share	$ 0.01	$ 0.01

Condensed Consolidated Statem_4

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	Accumulated Other Comprehensive (Loss) Income
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock, shares, outstanding		124,398
Total stockholders' equity	$ 513,276	$ 1,065	$ 1,146,509	$ 1,143,647	$ (1,765,574)	$ (12,371)
Net earnings (loss)	(4,237)			(4,237)
Total other comprehensive income	661					661
Exercise of stock options, shares		22
Exercise of stock options	477	$ 1	476
Vesting of restricted share units, net of shares withheld for employee taxes, shares		424
Vesting of restricted share units, net of shares withheld for employee taxes	0	$ 4	(4)
Tax effect of stock awards vested and options exercised	(8,466)		(8,466)
Stock-based compensation	41,410		41,410
Dividends declared	(20,063)			(20,063)
Common stock, shares, outstanding		124,844
Total stockholders' equity	523,058	$ 1,070	1,179,925	1,119,347	(1,765,574)	(11,710)
Common stock, shares, outstanding		125,028
Total stockholders' equity	525,146	$ 1,080	1,298,094	1,077,189	(1,840,591)	(10,626)
Net earnings (loss)	47,330			47,330
Total other comprehensive income	3,104					3,104
Exercise of stock options, shares		55
Exercise of stock options	684	$ 1	683
Vesting of restricted share units, net of shares withheld for employee taxes, shares		204
Vesting of restricted share units, net of shares withheld for employee taxes	0	$ 31	(31)
Tax effect of stock awards vested and options exercised	(2,535)		(2,535)
Stock-based compensation	115,681		115,681
Dividends declared	(19,068)			(19,068)
Common stock, shares, outstanding		125,287
Total stockholders' equity	$ 670,342	$ 1,112	$ 1,411,892	$ 1,105,451	$ (1,840,591)	$ (7,522)

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities
Net earnings (loss)	$ 47,330	$ (4,237)
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation of rental merchandise	288,434	327,439
Bad debt expense	5,861	4,973
Stock-based compensation expense	115,681	41,410
Depreciation of property assets	16,609	18,247
Loss on sale or disposal of property assets	332	4,341
Amortization of intangibles	14,506	22,373
Amortization of financing fees	1,574	1,562
Deferred income taxes	(129,065)	(16,607)
Changes in operating assets and liabilities, net of acquired assets
Rental merchandise	(232,944)	(165,303)
Receivables	4,232	220
Prepaid expenses and other assets	1,237	15,997
Operating lease right-of-use assets and lease liabilities	87	(3,259)
Accounts payable – trade	(36,795)	(4,951)
Accrued liabilities	8,338	(36,914)
Net cash provided by operating activities	105,417	205,291
Cash flows from investing activities
Purchase of property assets	(9,534)	(16,403)
Proceeds from sale of property assets	3	6
Acquisitions of businesses	(39)	(324)
Net cash used in investing activities	(9,570)	(16,721)
Cash flows from financing activities
Exercise of stock options	684	477
Shares withheld for payment of employee tax withholdings	(2,535)	(8,467)
Repayments of debt	(42,042)	(172,188)
Dividends paid	(25,515)	(21,105)
Net cash used in financing activities	(69,408)	(201,283)
Effect of exchange rate changes on cash	1,118	64
Net increase (decrease) in cash and cash equivalents	27,557	(12,649)
Cash and cash equivalents at beginning of period	144,141	108,333
Cash and cash equivalents at end of period	$ 171,698	$ 95,684

Basis of Presentation (Notes)

Basis of Presentation (Notes)	3 Months Ended
	Mar. 31, 2023
Basis of Presentation [Abstract]
Basis of Presentation	Basis of Presentation The interim condensed consolidated financial statements of Upbound Group, 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, 2022. 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, including those related to recent macroeconomic trends or other factors, 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 The financial statements included herein include the accounts of Upbound Group, Inc. (formerly 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 “Upbound Group, Inc.” refer only to Upbound Group, Inc., the parent, and references to the “Company”, “we,” “us” and “our” refer to the consolidated business operations of Upbound Group and any or all of its direct and indirect subsidiaries. We report four operating segments: Rent-A-Center Business, Acima, 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, which operates in the United States and Puerto Rico, and includes the operations of Acima Holdings and certain locations previously operating under our Preferred Lease brand, generally offers the lease-to-own transaction to consumers who do not qualify for financing from the traditional retailer through staffed or unstaffed kiosks located within such retailer’s locations, or other virtual options. Virtual locations employ a virtual solution where customers, either directly or with the assistance of a representative of the third-party retailer, initiate the lease-to-own transaction online in the retailers’ locations using our virtual solutions. 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 Upbound Group, Inc., 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.

Revenues (Notes)

Revenues (Notes)	3 Months Ended
	Mar. 31, 2023
Revenues [Abstract]
Revenues	Revenues The following tables disaggregate our revenue: Three Months Ended March 31, 2023 Rent-A-Center Business Acima Mexico Franchising Consolidated (in thousands) Store Rentals and fees $ 426,069 $ 364,165 $ 16,483 $ — $ 806,717 Merchandise sales 42,788 119,371 830 — 162,989 Installment sales 15,847 — — — 15,847 Other 304 311 117 713 1,445 Total store revenues 485,008 483,847 17,430 713 986,998 Franchise Merchandise sales — — — 22,827 22,827 Royalty income and fees — — — 6,236 6,236 Total revenues $ 485,008 $ 483,847 $ 17,430 $ 29,776 $ 1,016,061 Three Months Ended March 31, 2022 Rent-A-Center Business Acima Mexico Franchising Consolidated (In thousands) Store Rentals and fees $ 442,695 $ 425,471 $ 14,881 $ — $ 883,047 Merchandise sales 58,294 173,783 804 — 232,881 Installment sales 17,089 — — — 17,089 Other 427 123 27 713 1,290 Total store revenues 518,505 599,377 15,712 713 1,134,307 Franchise Merchandise sales — — — 18,521 18,521 Royalty income and fees — — — 6,894 6,894 Total revenues $ 518,505 $ 599,377 $ 15,712 $ 26,128 $ 1,159,722 Lease Purchase Agreements Rent-A-Center Business, Acima, and Mexico Rentals and Fees. Rental merchandise is leased to customers pursuant to lease-to-own agreements, which provide for weekly, bi-weekly, semi-monthly or monthly terms with non-refundable lease payments. At the expiration of each lease term, customers may renew the lease-to-own agreement for the next lease term. Generally, the customer has the right to acquire title of the merchandise either through a purchase option or through payment of all required lease terms. Customers can terminate the lease-to-own agreement at the end of any lease term without penalty. Therefore, lease-to-own agreements are accounted for as operating leases. Lease payments received at our Rent-A-Center Business stores, certain Acima staffed locations formerly operating under the Preferred Lease brand, and Mexico stores must be prepaid in advance of the next lease term. Under the Acima Holdings business model, revenues may be earned prior to the lease payment due date, in which case revenue is accrued prior to receipt of the lease payment, net of estimated returns and uncollectible renewal payments. Under both models, rental revenue is recognized over the lease term. See Note 3 for additional information regarding accrued lease 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 lease term. At March 31, 2023 and December 31, 2022, we had $49.0 million and $54.9 million, respectively, in deferred revenue included in accrued liabilities related to our lease-to-own 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, certain Acima staffed locations formerly operating under the Preferred Lease brand, and Mexico stores is depreciated using the income forecasting method and recognized in cost of rentals and fees in our Consolidated Statement of Operations over the lease term. Lease merchandise under Acima Holdings is depreciated over the lease term using a straight-line depreciation method. Under the income forecasting method, the consumption of lease merchandise occurs during periods of rental and depreciation directly coincides with the receipt of rental revenue over the lease-to-own contract period. Depreciation under the straight-line method is recognized each period over the term of the lease-to-own contract irrespective of receipt of revenue payments from the customer. We also offer additional product plans along with our lease-to-own 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 options offered through our lease-to-own 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, 2023 and December 31, 2022, we had $1.7 million and $2.0 million, respectively, in deferred revenue included in accrued liabilities related to extended service plans. Other. Other revenue consists 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 March 31, 2023 and December 31, 2022, we had $3.2 million and $3.4 million, respectively, in deferred revenue included in accrued liabilities related to franchise fees.

Receivables and Allowance for D

Receivables and Allowance for Doubtful Accounts (Notes)	3 Months Ended
	Mar. 31, 2023
Receivables and Allowance for Doubtful Accounts [Abstract]
Receivables and Allowance for Doubtful Accounts	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 receivables 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 each of the three months ended March 31, 2023 and 2022 was $3.0 million and $3.1 million, respectively. Trade and notes receivables consist of amounts due from our lease-to-own customers for lease renewal payments and past due uncollected lease payments, adjusted for the probability of collection based on our assessment of historical collection rates and length of time the receivable is past due; amounts owed from our franchisees for inventory purchases, earned royalties and other obligations; and other corporate related receivables. Credit is extended to franchisees based on an evaluation of each 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, 2023 December 31, 2022 Installment sales receivables $ 67,035 $ 69,550 Trade and notes receivables (1) 47,674 55,529 Total receivables 114,709 125,079 Less allowance for doubtful accounts (2) (12,937) (13,214) Total receivables, net of allowance for doubtful accounts $ 101,772 $ 111,865 (1) Trade and notes receivables includes accrued revenue, adjusted for the probability of collection, related to our lease-to-own agreements of $21.9 million and $28.7 million at March 31, 2023 and December 31, 2022, respectively. (2) Lease receivables are accrued on a net basis, adjusted for the probability of collection based on our assessment of historical collection rates, as described above. Therefore, we do not maintain a separate allowance for doubtful accounts related to our lease receivables. 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 notes 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 Franchising trade and notes receivables was $0.9 million and $1.2 million, and the allowance for doubtful accounts related to installment sales receivables was $12.0 million at both March 31, 2023 and December 31, 2022. Changes in our allowance for doubtful accounts are as follows: (in thousands) March 31, 2023 Beginning allowance for doubtful accounts $ 13,214 Bad debt expense (1) 5,861 Accounts written off, net of recoveries (6,138) Ending allowance for doubtful accounts $ 12,937 (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)

Leases (Notes)	3 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Leases	Leases We lease space for all of our Rent-A-Center Business and Mexico stores under operating leases expiring at various times through 2038. 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 years to five years at rental rates adjusted according to agreed upon formulas. We evaluate all leases to determine if it is likely that we will exercise future renewal options and in most cases we are not reasonably certain of exercise due to competing market rental rates and lack of significant penalty, or business disruption incurred by not exercising the renewal options. In certain situations involving the sale of a Rent-A-Center 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 Sheets. 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 Sheets. We also lease vehicles for all of our Mexico stores which have terms expiring at various times through 2026 with rental rates adjusted periodically for inflation. Finally, we have a minimal number of equipment leases, primarily related to temporary storage containers and certain back-office technology hardware assets. In our calculation of operating lease right-of-use assets and operating lease liabilities we have elected not to separate the lease and non-lease components. Furthermore, operating lease right-of-use assets and operating lease liabilities are discounted using our incremental borrowing rate, since the implicit rate is not readily determinable. We do not currently have any financing leases. Operating lease costs are recorded on a straight-line basis within other store expenses in our Condensed Consolidated Statements of Operations. Total operating lease costs by expense type: Three Months Ended March 31, (in thousands) 2023 2022 Operating lease cost included in Other store expenses (1)(2) $ 31,337 $ 31,594 Operating lease cost included in Other charges (2) — 23 Sublease receipts (1,260) (2,165) Total operating lease charges $ 30,077 $ 29,452 (1) Includes short-term lease costs, which are not significant. (2) Excludes variable lease costs of $9.4 million and $8.7 million for the three months ended March 31, 2023 and 2022, respectively. Supplemental cash flow information related to leases: Three Months Ended March 31, (in thousands) 2023 2022 Cash paid for amounts included in measurement of operating lease liabilities $ 26,523 $ 26,090 Cash paid for short-term operating leases not included in operating lease liabilities 4,550 4,861 Right-of-use assets obtained in exchange for new operating lease liabilities 19,416 28,638 Weighted-average discount rate and weighted-average remaining lease term: (in thousands) March 31, 2023 December 31, 2022 Weighted-average discount rate (1) 7.3 % 7.0 % 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, 2023: (in thousands) Operating Leases 2023 $ 80,631 2024 94,594 2025 76,210 2026 51,674 2027 30,786 Thereafter 22,424 Total undiscounted operating lease liabilities 356,319 Less: Interest (52,256) Total present value of operating lease liabilities $ 304,063

Income Taxes (Notes)

Income Taxes (Notes)	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Tax	Income Taxes The effective tax rate was 175.4% for the three months ended March 31, 2023, compared to 46.2% for the corresponding period in 2022. The effective tax rate for the three months ended March 31, 2023 was primarily attributable to the tax impact of accelerated stock compensation expense recognized for the three months ended March 31, 2023 related to restricted stock agreements issued to the former owners of Acima Holdings upon acquisition of Acima Holdings, as described further in Note 11 below. For tax purposes, restricted stock units subject to restricted stock agreements issued to the former owners of Acima Holdings were recorded as goodwill and will be amortized over a period of 15 years.

Senior Debt (Notes)

Senior Debt (Notes)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Senior Debt	Senior Debt On February 17, 2021, we entered into a credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and lenders party thereto, providing 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”) providing 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. Proceeds from the Term Loan 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 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 Sheets. On September 21, 2021 we entered into a First Amendment to the Term Loan Facility, effective as of September 21, 2021. The amendment effected a repricing of the applicable margin under the Term Loan Facility by reducing the LIBOR floor by 25 basis points from 0.75% to 0.50%, and the applicable margin, with respect to any initial term loans, by 75 basis points from 4.00% to 3.25%. In connection with the execution of the First Amendment, and in accordance with ASC Topic 470, “Debt”, we recorded approximately $5.4 million in write-offs of unamortized debt issuance costs and original issue discount previously capitalized upon the issuance of the Term Loan Facility on February 17, 2021. On August 10, 2022, we entered into a First Amendment to the ABL Credit Facility, effective as of August 10, 2022. The amendment effected the replacement of LIBOR with Term Secured Overnight Financing Rate (“Term SOFR”) as the benchmark rate of interest thereunder. As of March 31, 2023, the total remaining balance of unamortized debt issuance costs and original issue discount related to our senior debt reported in the Condensed Consolidated Balance Sheets were approximately $15.3 million and $2.3 million, respectively. Remaining unamortized debt issuance costs and original issue discount will be amortized to interest expense over the remaining term of the Term Loan Facility. The amount outstanding under the Term Loan Facility was $817.6 million at March 31, 2023. In addition, we had $90.0 million of outstanding borrowings under our ABL Credit Facility at March 31, 2023 and borrowing capacity of $397.1 million, net of outstanding borrowings and issued letters of credit of approximately $62.9 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 3.25%, subject to a 0.50% LIBOR floor. The total interest rate on the Term Loan Facility was 8.125% at March 31, 2023. 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. These covenants are subject to a number of limitations and exceptions set forth in the governing documents of the Term Loan. In the event our Consolidated Secured Leverage Ratio (as such term is defined in the Term Loan Facility credit agreement) exceeds 1:1, we are required to prepay the loans under the Term Loan Facility by a percentage of annual excess cash flow, as more fully described in the Term Loan Facility credit agreement. We made mandatory excess cash flow prepayments of approximately $42.6 million, including $0.6 million in accrued interest, in March 2023, relating to results for the year ended December 31, 2022. 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. 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 certain reserves. The ABL Credit Facility bears interest at a fluctuating rate determined by reference to Term SOFR plus an applicable margin of 1.50% to 2.00%. The total interest rate on the ABL Credit Facility at March 31, 2023 was 6.635%. 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 governing documents of the ABL Credit Facility. The commitment fee at March 31, 2023 was 0.375%. We paid $0.7 million of commitment fees during the first quarter of 2023. 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 Credit 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 Credit Facility also requires the maintenance of a consolidated fixed charge coverage ratio of at least 1.10 to 1.00 at the end of each fiscal quarter only in the event 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 governing documents of the ABL Credit Facility. The fixed charge coverage ratio as of March 31, 2023 was 1.16 to 1.00. The governing documents of the ABL Credit 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. As of March 31, 2023, we were in compliance with all requirements and conditions set forth in our ABL Credit Facility governing documents. The table below shows the scheduled maturity dates of our outstanding debt at March 31, 2023 for each of the years ending December 31: (in thousands) Term Loan Facility (1) ABL Credit Facility Total 2023 $ — $ — $ — 2024 — — — 2025 — — — 2026 — 90,000 90,000 2027 1,708 — 1,708 Thereafter 815,938 — 815,938 Total senior debt $ 817,646 $ 90,000 $ 907,646

Senior Notes (Notes)

Senior Notes (Notes)	3 Months Ended
	Mar. 31, 2023
Subsidiary Guarantors - Senior Notes [Abstract]
Senior Notes	Senior Notes On 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. 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 Sheets. Debt issuance costs are amortized as interest expense over the term of the Notes. As of March 31, 2023, the total remaining balance of unamortized debt issuance costs related to our senior notes reported in the Condensed Consolidated Balance Sheets was approximately $11.6 million. 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)

Fair Value (Notes)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value	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, 2023 and December 31, 2022, 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, 2023: March 31, 2023 (in thousands) Carrying Value Fair Value Difference Senior notes $ 450,000 $ 376,875 $ (73,125)

Other Charges (Notes)

Other Charges (Notes)	3 Months Ended
	Mar. 31, 2023
Restructuring and Related Activities [Abstract]
Other Charges	Other Charges Acima Holdings Acquisition. On February 17, 2021, we completed the acquisition of Acima Holdings, a leading provider of virtual lease-to-own solutions. Included in the aggregate consideration issued to the former owners of Acima Holdings were 8,096,595 common shares, valued at $414.1 million, subject to 36-month vesting conditions under restricted stock agreements, which will be recognized over the vesting term as stock compensation expense. During the three months ended March 31, 2023 and 2022, we recognized approximately $109.5 million and $36.6 million in stock compensation expense, respectively, related to these restricted stock agreements. See Note 11 for additional information. The fair value of assets acquired as part of the transaction included $520 million in intangible assets and $170 million in developed technology. During the three months ended March 31, 2023 and 2022, we recognized approximately $14.2 million and $22.1 million in amortization expense, respectively, related acquired intangible assets. We also recognized approximately $4.0 million in incremental depreciation expense related to acquired technology assets in both the three months ended March 31, 2023 and 2022. During the three months ended March 31, 2022, we recognized approximately $0.2 million in transaction costs associated with the closing of the transaction. Activity with respect to Other charges for the three months ended March 31, 2023 is summarized in the below table: (in thousands) Accrued Charges at December 31, 2022 Charges & Adjustments Payments & Adjustments Accrued Charges at March 31, 2023 Cash charges: Labor reduction costs (1) 2,202 — (768) 1,434 Total cash charges $ 2,202 — $ (768) $ 1,434 Non-cash charges: Acima Holdings restricted stock agreements (2) 109,473 Depreciation and amortization of acquired assets (3) 18,234 Other (137) Total other charges $ 127,570 (1) Represents charges incurred and payments for employee severance. (2) Represents stock compensation expense related to common stock issued to Acima Holdings employees under restricted stock agreements as part of the acquisition proceeds subject to vesting restrictions, as described in Note 11. (3) Represents amortization of the total fair value of acquired intangible assets and incremental depreciation related to the fair value increase over net book value of acquired software assets in connection with the acquisition of Acima Holdings in 2021.

Segment Information (Notes)

Segment Information (Notes)	3 Months Ended
	Mar. 31, 2023
Segment Information [Abstract]
Segment Information	Segment Information The operating segments reported below are the segments for which separate financial information is available and for which segment results are evaluated by the chief operating decision makers. Our operating segments are organized based on factors including, but not limited to, type of business transactions, geographic location and store ownership. Within our operating segments, we offer merchandise for lease from certain basic product categories: furniture, including mattresses, tires, consumer electronics, appliances, tools, handbags, computers, smartphones, and accessories. Segment information as of and for the three months ended March 31, 2023 and 2022 is as follows: Three Months Ended March 31, (in thousands) 2023 2022 Revenues Rent-A-Center Business $ 485,008 $ 518,505 Acima 483,847 599,377 Mexico 17,430 15,712 Franchising 29,776 26,128 Total revenues $ 1,016,061 $ 1,159,722 Three Months Ended March 31, (in thousands) 2023 2022 Gross profit Rent-A-Center Business $ 331,725 $ 363,380 Acima 155,144 164,228 Mexico 12,391 11,101 Franchising 7,004 7,386 Total gross profit $ 506,264 $ 546,095 Three Months Ended March 31, (in thousands) 2023 2022 Operating (loss) profit Rent-A-Center Business $ 68,961 $ 100,176 Acima 53,870 9,600 Mexico 995 2,066 Franchising 4,760 4,790 Total segments 128,586 116,632 Corporate (1) (163,699) (105,589) Total operating (loss) profit $ (35,113) $ 11,043 (1) Includes stock compensation expense of $109.5 million and $36.6 million recognized for the three months ended March 31, 2023 and 2022, respectively, related to common stock issued to Acima Holdings employees under restricted stock agreements as part of the acquisition consideration subject to vesting restrictions as described in Note 11. Three Months Ended March 31, (in thousands) 2023 2022 Depreciation and amortization Rent-A-Center Business $ 4,970 $ 6,413 Acima (1) 427 582 Mexico 242 149 Franchising 38 37 Total segments 5,677 7,181 Corporate (2) 7,204 7,348 Total depreciation and amortization $ 12,881 $ 14,529 (1) Excludes amortization expense of approximately $14.2 million and $22.1 million for the three months ended March 31, 2023 and 2022, respectively, recorded to Other charges in the Condensed Consolidated Statement of Operations, related to intangible assets acquired upon closing of the Acima Holdings acquisition. See Note 9 for additional information. (2) Excludes depreciation expense of approximately $4.0 million for both the three months ended March 31, 2023 and 2022, recorded to Other charges in the Condensed Consolidated Statement of Operations, related to software acquired upon closing of the Acima Holdings acquisition. See Note 9 for additional information. Three Months Ended March 31, (in thousands) 2023 2022 Capital expenditures Rent-A-Center Business $ 2,977 $ 13,408 Acima 58 46 Mexico 716 222 Franchising 1 112 Total segments 3,752 13,788 Corporate 5,782 2,615 Total capital expenditures $ 9,534 $ 16,403 (in thousands) March 31, 2023 December 31, 2022 On rent rental merchandise, net Rent-A-Center Business $ 450,162 $ 465,095 Acima 472,550 503,795 Mexico 20,775 20,979 Total on rent rental merchandise, net $ 943,487 $ 989,869 (in thousands) March 31, 2023 December 31, 2022 Held for rent rental merchandise, net Rent-A-Center Business $ 116,936 $ 124,117 Acima 605 373 Mexico 9,221 10,469 Total held for rent rental merchandise, net $ 126,762 $ 134,959 (in thousands) March 31, 2023 December 31, 2022 Assets by segment Rent-A-Center Business $ 1,003,245 $ 1,067,875 Acima 1,135,502 1,198,879 Mexico 53,854 51,225 Franchising 18,009 18,194 Total segments 2,210,610 2,336,173 Corporate 530,515 427,446 Total assets $ 2,741,125 $ 2,763,619

Common Stock and Stock-Based Co

Common Stock and Stock-Based Compensation (Notes)	3 Months Ended
	Mar. 31, 2023
Stock-Based Compensation [Abstract]
Common Stock and Stock-Based Compensation	Common Stock and Stock-Based Compensation In early December 2021, our Board of Directors authorized a stock repurchase program for up to $500 million (the “December 2021 Program”), which superseded our previous stock repurchase program. Under the December 2021 Program, we may purchase shares of our common stock from time to time in the open market or privately negotiated transactions. We are not obligated to acquire any shares under the program, and the program may be suspended or discontinued at any time. No shares of our common stock were repurchased during the three months ended March 31, 2023 or 2022, and approximately $285.0 million are remaining under the current authorization available for repurchases at March 31, 2023. We recognized $6.2 million and $4.9 million in compensation expense related to stock awards issued under the Rent-A-Center, Inc. 2021 Long-Term Incentive Plan (the “2021 Plan”) and 2016 Long-Term Incentive Plan (the “2016 Plan”) during the three months ended March 31, 2023 and 2022, respectively. During the three months ended March 31, 2023, we granted approximately 599,397 market-based performance units and 340,546 time-vesting units under the 2021 Plan. Performance-based restricted stock units are valued using a Monte Carlo simulation. Time-vesting restricted stock units are valued based on our closing stock price on the trading day immediately preceding the date of the grant, or as of the date of modification in the event an award is modified. The weighted-average grant date fair value of the market-based performance and time-vesting restricted stock units granted during the three months ended March 31, 2023 was $32.30 and $26.18, respectively. In connection with the acquisition of Acima Holdings, LLC in 2021, we issued to the former owners of Acima Holdings 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, are recognized as stock compensation expense over the vesting term in accordance with ASC Topic 718, “Stock-based Compensation” and recorded to Other charges in our unaudited Condensed Consolidated Statements of Operations. We recognized $109.5 million and $36.6 million in stock compensation expense related to these restricted stock agreements during the three months ended March 31, 2023 and 2022, respectively. Stock compensation expense recognized during the three months ended March 31, 2023 for these restricted stock agreements included $78.4 million attributable to the acceleration of vesting provisions, primarily related to Aaron Allred's transition from Executive Vice President of Acima to an advisory role.

Contingencies (Notes)

Contingencies (Notes)	3 Months Ended
	Mar. 31, 2023
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 currently expect these losses to have a material impact on our 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. In addition, claims and lawsuits against us may seek injunctive or other relief that requires changes to our business practices or operations and it is possible that any required changes may materially and adversely impact our business, financial condition, results of operations or reputation. Unclaimed Property. We are subject to unclaimed property audits by states in the ordinary course of business. The property subject to review in the audit process includes 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 and believe we are 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. 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 agreed to indemnify Upbound Group, Inc. 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 were limited to an indemnity holdback in the aggregate amount of $50 million, which was escrowed at the closing of the transaction, and will be Upbound Group, Inc.’s sole recourse against the former owners of Acima Holdings with respect to all of the indemnifiable claims under the definitive transaction agreement. In respect of certain pre-closing taxes, a portion of the escrowed funds were released to Acima Holdings’ former owners on the first business day following the date that was 18 months after the closing date of the transaction, in accordance with the definitive agreement. In respect of the CID, other than with respect to any then-pending or unresolved claims for indemnification submitted by Upbound Group, Inc., remaining escrowed funds of $45 million will be released on the earlier of February 17, 2024 and the date on which a final determination is entered providing for a resolution of the matters regarding the CID. 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’ business practices or operations that could materially and adversely affect our business, financial condition, results of operations or reputation. Massachusetts Attorney General. The Massachusetts Attorney General (the “MAG”) issued a civil investigative demand in 2018 seeking information with respect to certain of our business practices, including regarding account management and certain other business practices in connection with our lease-to-own transactions. Since receiving such demand, we have cooperated with the MAG in connection with its investigation. In June 2021, the MAG provided us with proposed settlement terms including a monetary payment, injunctive provisions regarding certain business practices and compliance requirements. We are continuing to cooperate and discuss resolution of the inquiry with the MAG. We are currently unable to predict the ultimate timing or outcome of the MAG investigation. State Attorneys General Investigation. On November 1, 2021, Acima received a letter from the Nebraska Attorney General’s office stating that the Attorney General of Nebraska, along with a coalition of thirty-eight state Attorneys General, initiated a multi-state investigation into the business acts and practices of Acima and that a civil investigative demand(s) and/or subpoena(s) pursuant to respective state consumer protection laws will be forthcoming. Since receiving the letter, we have held multiple discussions with officials at the lead attorneys general offices and, based on those discussions, it is our understanding that the investigation is looking at business practices within the virtual lease-to-own industry and includes or will include multiple companies. In April 2022, we received a request for information and documents. Acima is cooperating with the investigation and is currently in the process of producing requested information. No specific allegations have been made against Acima pursuant to the invest igation. We are currently unable to predict the eventual scope, timing or outcome of this matter. New York Attorney General. The New York Attorney General (the “NYAG”) issued a subpoena to our Acima subsidiary in January 2020 seeking information with respect to various business practices in connection with Acima’s lease-to-own transactions. Acima received a second subpoena from the NYAG in August 2021. Since receiving the subpoenas, we have cooperated with the NYAG in connection with its investigation. In March 2023, the NYAG provided Acima with an initial proposed assurance of discontinuance alleging violations of certain consumer laws and seeking injunctive provisions regarding certain business practices, compliance requirements and unspecified payment amounts for restitution and civil penalties. We are continuing to cooperate and discuss resolution of this matter with the NYAG. We are currently unable to predict the ultimate timing or outcome of the NYAG investigation.

Earnings (Loss) Per Common Shar

Earnings (Loss) Per Common Share	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Earnings (Loss) Per Common Share	Earnings (Loss) Per Common Share Summarized basic and diluted earnings (loss) per common share were calculated as follows: Three Months Ended March 31, (in thousands, except per share data) 2023 2022 Numerator: Net earnings (loss) $ 47,330 $ (4,237) Denominator: Weighted-average shares outstanding 55,157 53,751 Effect of dilutive stock awards (1) (2) 1,280 — Weighted-average dilutive shares 56,437 53,751 Basic earnings (loss) per common share $ 0.86 $ (0.08) Diluted earnings (loss) per common share (1) (2) $ 0.84 $ (0.08) Anti-dilutive securities excluded from diluted earnings (loss) per common share: Anti-dilutive restricted share units 336 5,959 Anti-dilutive performance share units 790 984 Anti-dilutive stock options 418 1,068 (1) Weighted-average dilutive shares outstanding for the three months ended March 31, 2023 and 2022, includes approximately 0.7 million and 5.2 million common shares, respectively, issued in connection with the acquisition of Acima Holdings and subject to vesting conditions under restricted stock agreements. (2) There was no dilutive effect to the loss per common share for the three months ended March 31, 2022 due to the net loss incurred for the period.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Use of Estimates	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, including those related to recent macroeconomic trends or other factors, 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	Principles of Consolidation and Nature of Operations The financial statements included herein include the accounts of Upbound Group, Inc. (formerly 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 “Upbound Group, Inc.” refer only to Upbound Group, Inc., the parent, and references to the “Company”, “we,” “us” and “our” refer to the consolidated business operations of Upbound Group and any or all of its direct and indirect subsidiaries. We report four operating segments: Rent-A-Center Business, Acima, 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, which operates in the United States and Puerto Rico, and includes the operations of Acima Holdings and certain locations previously operating under our Preferred Lease brand, generally offers the lease-to-own transaction to consumers who do not qualify for financing from the traditional retailer through staffed or unstaffed kiosks located within such retailer’s locations, or other virtual options. Virtual locations employ a virtual solution where customers, either directly or with the assistance of a representative of the third-party retailer, initiate the lease-to-own transaction online in the retailers’ locations using our virtual solutions. 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 Upbound Group, Inc., 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.

Revenues (Tables)

Revenues (Tables)	3 Months Ended
	Mar. 31, 2023
Revenues [Abstract]
Disaggregation of Revenue	The following tables disaggregate our revenue: Three Months Ended March 31, 2023 Rent-A-Center Business Acima Mexico Franchising Consolidated (in thousands) Store Rentals and fees $ 426,069 $ 364,165 $ 16,483 $ — $ 806,717 Merchandise sales 42,788 119,371 830 — 162,989 Installment sales 15,847 — — — 15,847 Other 304 311 117 713 1,445 Total store revenues 485,008 483,847 17,430 713 986,998 Franchise Merchandise sales — — — 22,827 22,827 Royalty income and fees — — — 6,236 6,236 Total revenues $ 485,008 $ 483,847 $ 17,430 $ 29,776 $ 1,016,061 Three Months Ended March 31, 2022 Rent-A-Center Business Acima Mexico Franchising Consolidated (In thousands) Store Rentals and fees $ 442,695 $ 425,471 $ 14,881 $ — $ 883,047 Merchandise sales 58,294 173,783 804 — 232,881 Installment sales 17,089 — — — 17,089 Other 427 123 27 713 1,290 Total store revenues 518,505 599,377 15,712 713 1,134,307 Franchise Merchandise sales — — — 18,521 18,521 Royalty income and fees — — — 6,894 6,894 Total revenues $ 518,505 $ 599,377 $ 15,712 $ 26,128 $ 1,159,722

Receivables and Allowance for_2

Receivables and Allowance for Doubtful Accounts (Tables)	3 Months Ended
	Mar. 31, 2023
Receivables and Allowance for Doubtful Accounts [Abstract]
Receivables	Receivables consist of the following: (in thousands) March 31, 2023 December 31, 2022 Installment sales receivables $ 67,035 $ 69,550 Trade and notes receivables (1) 47,674 55,529 Total receivables 114,709 125,079 Less allowance for doubtful accounts (2) (12,937) (13,214) Total receivables, net of allowance for doubtful accounts $ 101,772 $ 111,865 (1) Trade and notes receivables includes accrued revenue, adjusted for the probability of collection, related to our lease-to-own agreements of $21.9 million and $28.7 million at March 31, 2023 and December 31, 2022, respectively. (2) Lease receivables are accrued on a net basis, adjusted for the probability of collection based on our assessment of historical collection rates, as described above. Therefore, we do not maintain a separate allowance for doubtful accounts related to our lease receivables.
Changes in allowance for doubtful accounts	Changes in our allowance for doubtful accounts are as follows: (in thousands) March 31, 2023 Beginning allowance for doubtful accounts $ 13,214 Bad debt expense (1) 5,861 Accounts written off, net of recoveries (6,138) Ending allowance for doubtful accounts $ 12,937 (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)

Leases (Tables)	3 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Operating lease costs	Total operating lease costs by expense type: Three Months Ended March 31, (in thousands) 2023 2022 Operating lease cost included in Other store expenses (1)(2) $ 31,337 $ 31,594 Operating lease cost included in Other charges (2) — 23 Sublease receipts (1,260) (2,165) Total operating lease charges $ 30,077 $ 29,452 (1) Includes short-term lease costs, which are not significant. (2) Excludes variable lease costs of $9.4 million and $8.7 million for the three months ended March 31, 2023 and 2022, respectively. Supplemental cash flow information related to leases: Three Months Ended March 31, (in thousands) 2023 2022 Cash paid for amounts included in measurement of operating lease liabilities $ 26,523 $ 26,090 Cash paid for short-term operating leases not included in operating lease liabilities 4,550 4,861 Right-of-use assets obtained in exchange for new operating lease liabilities 19,416 28,638 Weighted-average discount rate and weighted-average remaining lease term: (in thousands) March 31, 2023 December 31, 2022 Weighted-average discount rate (1) 7.3 % 7.0 % 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	Reconciliation of undiscounted operating lease liabilities to the present value operating lease liabilities at March 31, 2023: (in thousands) Operating Leases 2023 $ 80,631 2024 94,594 2025 76,210 2026 51,674 2027 30,786 Thereafter 22,424 Total undiscounted operating lease liabilities 356,319 Less: Interest (52,256) Total present value of operating lease liabilities $ 304,063

Senior Debt (Tables)

Senior Debt (Tables)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Schedule of Maturities of Long-term Debt	The table below shows the scheduled maturity dates of our outstanding debt at March 31, 2023 for each of the years ending December 31: (in thousands) Term Loan Facility (1) ABL Credit Facility Total 2023 $ — $ — $ — 2024 — — — 2025 — — — 2026 — 90,000 90,000 2027 1,708 — 1,708 Thereafter 815,938 — 815,938 Total senior debt $ 817,646 $ 90,000 $ 907,646

Fair Value (Tables)

Fair Value (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements Nonrecurring	The fair value of our Notes is based on Level 1 inputs and was as follows at March 31, 2023: March 31, 2023 (in thousands) Carrying Value Fair Value Difference Senior notes $ 450,000 $ 376,875 $ (73,125)

Other Charges (Tables)

Other Charges (Tables)	3 Months Ended
	Mar. 31, 2023
Restructuring and Related Activities [Abstract]
Other Charges	Activity with respect to Other charges for the three months ended March 31, 2023 is summarized in the below table: (in thousands) Accrued Charges at December 31, 2022 Charges & Adjustments Payments & Adjustments Accrued Charges at March 31, 2023 Cash charges: Labor reduction costs (1) 2,202 — (768) 1,434 Total cash charges $ 2,202 — $ (768) $ 1,434 Non-cash charges: Acima Holdings restricted stock agreements (2) 109,473 Depreciation and amortization of acquired assets (3) 18,234 Other (137) Total other charges $ 127,570 (1) Represents charges incurred and payments for employee severance. (2) Represents stock compensation expense related to common stock issued to Acima Holdings employees under restricted stock agreements as part of the acquisition proceeds subject to vesting restrictions, as described in Note 11. (3) Represents amortization of the total fair value of acquired intangible assets and incremental depreciation related to the fair value increase over net book value of acquired software assets in connection with the acquisition of Acima Holdings in 2021.

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2023
Segment Information [Abstract]
Segment Information	Segment information as of and for the three months ended March 31, 2023 and 2022 is as follows: Three Months Ended March 31, (in thousands) 2023 2022 Revenues Rent-A-Center Business $ 485,008 $ 518,505 Acima 483,847 599,377 Mexico 17,430 15,712 Franchising 29,776 26,128 Total revenues $ 1,016,061 $ 1,159,722 Three Months Ended March 31, (in thousands) 2023 2022 Gross profit Rent-A-Center Business $ 331,725 $ 363,380 Acima 155,144 164,228 Mexico 12,391 11,101 Franchising 7,004 7,386 Total gross profit $ 506,264 $ 546,095 Three Months Ended March 31, (in thousands) 2023 2022 Operating (loss) profit Rent-A-Center Business $ 68,961 $ 100,176 Acima 53,870 9,600 Mexico 995 2,066 Franchising 4,760 4,790 Total segments 128,586 116,632 Corporate (1) (163,699) (105,589) Total operating (loss) profit $ (35,113) $ 11,043 (1) Includes stock compensation expense of $109.5 million and $36.6 million recognized for the three months ended March 31, 2023 and 2022, respectively, related to common stock issued to Acima Holdings employees under restricted stock agreements as part of the acquisition consideration subject to vesting restrictions as described in Note 11. Three Months Ended March 31, (in thousands) 2023 2022 Depreciation and amortization Rent-A-Center Business $ 4,970 $ 6,413 Acima (1) 427 582 Mexico 242 149 Franchising 38 37 Total segments 5,677 7,181 Corporate (2) 7,204 7,348 Total depreciation and amortization $ 12,881 $ 14,529 (1) Excludes amortization expense of approximately $14.2 million and $22.1 million for the three months ended March 31, 2023 and 2022, respectively, recorded to Other charges in the Condensed Consolidated Statement of Operations, related to intangible assets acquired upon closing of the Acima Holdings acquisition. See Note 9 for additional information. (2) Excludes depreciation expense of approximately $4.0 million for both the three months ended March 31, 2023 and 2022, recorded to Other charges in the Condensed Consolidated Statement of Operations, related to software acquired upon closing of the Acima Holdings acquisition. See Note 9 for additional information. Three Months Ended March 31, (in thousands) 2023 2022 Capital expenditures Rent-A-Center Business $ 2,977 $ 13,408 Acima 58 46 Mexico 716 222 Franchising 1 112 Total segments 3,752 13,788 Corporate 5,782 2,615 Total capital expenditures $ 9,534 $ 16,403 (in thousands) March 31, 2023 December 31, 2022 On rent rental merchandise, net Rent-A-Center Business $ 450,162 $ 465,095 Acima 472,550 503,795 Mexico 20,775 20,979 Total on rent rental merchandise, net $ 943,487 $ 989,869 (in thousands) March 31, 2023 December 31, 2022 Held for rent rental merchandise, net Rent-A-Center Business $ 116,936 $ 124,117 Acima 605 373 Mexico 9,221 10,469 Total held for rent rental merchandise, net $ 126,762 $ 134,959 (in thousands) March 31, 2023 December 31, 2022 Assets by segment Rent-A-Center Business $ 1,003,245 $ 1,067,875 Acima 1,135,502 1,198,879 Mexico 53,854 51,225 Franchising 18,009 18,194 Total segments 2,210,610 2,336,173 Corporate 530,515 427,446 Total assets $ 2,741,125 $ 2,763,619

Earnings (Loss) Per Common Sh_2

Earnings (Loss) Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Earnings Per Common Share	Summarized basic and diluted earnings (loss) per common share were calculated as follows: Three Months Ended March 31, (in thousands, except per share data) 2023 2022 Numerator: Net earnings (loss) $ 47,330 $ (4,237) Denominator: Weighted-average shares outstanding 55,157 53,751 Effect of dilutive stock awards (1) (2) 1,280 — Weighted-average dilutive shares 56,437 53,751 Basic earnings (loss) per common share $ 0.86 $ (0.08) Diluted earnings (loss) per common share (1) (2) $ 0.84 $ (0.08) Anti-dilutive securities excluded from diluted earnings (loss) per common share: Anti-dilutive restricted share units 336 5,959 Anti-dilutive performance share units 790 984 Anti-dilutive stock options 418 1,068 (1) Weighted-average dilutive shares outstanding for the three months ended March 31, 2023 and 2022, includes approximately 0.7 million and 5.2 million common shares, respectively, issued in connection with the acquisition of Acima Holdings and subject to vesting conditions under restricted stock agreements. (2) There was no dilutive effect to the loss per common share for the three months ended March 31, 2022 due to the net loss incurred for the period.

Basis of Presentation - Narrati

Basis of Presentation - Narrative (Details)	3 Months Ended
	Mar. 31, 2023 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	4

Revenues (Details)

Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Rentals and fees	$ 806,717	$ 883,047
Merchandise sales	162,989	232,881
Installment sales	15,847	17,089
Other	1,445	1,290
Total store revenues	986,998	1,134,307
Merchandise sales	22,827	18,521
Royalty income and fees	6,236	6,894
Total revenues	1,016,061	1,159,722
Rental purchase agreements [Member]
Disaggregation of Revenue [Line Items]
Deferred revenue	49,000		$ 54,900
Other product plans [Member]
Disaggregation of Revenue [Line Items]
Deferred revenue	1,700		2,000
Franchise fees [Member]
Disaggregation of Revenue [Line Items]
Deferred revenue	3,200		$ 3,400
Rent-A-Center Business [Member]
Disaggregation of Revenue [Line Items]
Rentals and fees	426,069	442,695
Merchandise sales	42,788	58,294
Installment sales	15,847	17,089
Other	304	427
Total store revenues	485,008	518,505
Merchandise sales	0	0
Royalty income and fees	0	0
Total revenues	485,008	518,505
Acima [Member]
Disaggregation of Revenue [Line Items]
Rentals and fees	364,165	425,471
Merchandise sales	119,371	173,783
Installment sales	0	0
Other	311	123
Total store revenues	483,847	599,377
Merchandise sales	0	0
Royalty income and fees	0	0
Total revenues	483,847	599,377
Mexico [Member]
Disaggregation of Revenue [Line Items]
Rentals and fees	16,483	14,881
Merchandise sales	830	804
Installment sales	0	0
Other	117	27
Total store revenues	17,430	15,712
Merchandise sales	0	0
Royalty income and fees	0	0
Total revenues	17,430	15,712
Franchising [Member]
Disaggregation of Revenue [Line Items]
Rentals and fees	0	0
Merchandise sales	0	0
Installment sales	0	0
Other	713	713
Total store revenues	713	713
Merchandise sales		18,521
Royalty income and fees		6,894
Total revenues	$ 29,776	$ 26,128

Receivables and Allowance for_3

Receivables and Allowance for Doubtful Accounts (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Receivables [Line Items]
Interest paid on installment agreements	$ 3,000,000	$ 3,100,000
Gross receivables	114,709,000		$ 125,079,000
Total receivables, net of allowance for doubtful accounts	101,772,000		111,865,000
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Less allowance for doubtful accounts	(12,937,000)		(13,214,000)
Bad debt expense	5,861,000
Accounts written off, net of recoveries	(6,138,000)
Installment sales receivable [Member]
Receivables [Line Items]
Gross receivables	67,035,000		69,550,000
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Less allowance for doubtful accounts	(12,000,000)		(12,000,000)
Trade and notes receivables [Member]
Receivables [Line Items]
Gross receivables	47,674,000		55,529,000
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Less allowance for doubtful accounts	(900,000)		(1,200,000)
Notes Receivable
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Accrued Revenue	$ 21,900,000		$ 28,700,000

Leases - Narrative (Details)

Leases - Narrative (Details)	Mar. 31, 2023
Lessee, Lease, Description [Line Items]
Term of contract	5 years
Minimum [Member]
Lessee, Lease, Description [Line Items]
Renewal term	3 years
Maximum [Member]
Lessee, Lease, Description [Line Items]
Renewal term	5 years

Leases - Lease by Type (Details

Leases - Lease by Type (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Lessee, Lease, Description [Line Items]
Operating lease charges	$ 30,077	$ 29,452
Sublease receipts	(1,260)	(2,165)
Cash paid for amounts included in measurement of operating lease liabilities	26,523	26,090
Cash paid for short-term operating leases not included in operating lease liabilities	4,550	4,861
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 19,416	28,638
Weighted-average discount rate	7.30%		7%
Weighted average remaining lease term (in years)	4 years		4 years
Variable lease cost	$ 9,400	8,700
Other store expenses [Member]
Lessee, Lease, Description [Line Items]
Operating lease charges	31,337	31,594
Other charges [Member]
Lessee, Lease, Description [Line Items]
Operating lease charges	$ 0	$ 23

Leases - Reconciliation (Detail

Leases - Reconciliation (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Leases [Abstract]
2023	$ 80,631
2024	94,594
2025	76,210
2026	51,674
2027	30,786
Thereafter	22,424
Total undiscounted operating lease liabilities	356,319
Less: Interest	(52,256)
Operating lease liabilities	$ 304,063	$ 305,556

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Effective tax rate	175.40%	46.20%

Senior Debt (Details)

Senior Debt (Details) - USD ($)			1 Months Ended	3 Months Ended
	Sep. 21, 2021	Feb. 17, 2021	Mar. 31, 2023	Mar. 31, 2023	Mar. 31, 2022
Debt Instrument [Line Items]
Original issue discount		$ 4,400,000
Debt issuance costs		30,200,000
Letters of credit, amount outstanding			$ 62,900,000	$ 62,900,000
Repayments of secured debt				$ 42,042,000	$ 172,188,000
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage				0.375%
Line of credit commitment fee				$ 700,000
Write-off of debt financing fees	$ 5,400,000
2023			0	0
2024			0	0
2025			0	0
2026			90,000,000	90,000,000
2027			1,708,000	1,708,000
Thereafter			815,938,000	815,938,000
Senior debt, net			907,646,000	907,646,000
Debt Issuance Costs [Member]
Debt Instrument [Line Items]
Unamortized Debt Issuance Expense			15,300,000	15,300,000
Original Issue Discount [Member]
Debt Instrument [Line Items]
Unamortized Debt Issuance Expense			$ 2,300,000	$ 2,300,000
Term loan credit
Debt Instrument [Line Items]
Senior secured term loan facility		875,000,000
Debt Instrument, Maturity Date				Feb. 17, 2028
Debt Instrument, Frequency of Periodic Payment				quarterly
Debt Instrument, Periodic Payment, Percent				1%
Actual margin on variable rate			8.125%	8.125%
Long-Term Debt, Maturities, Repayment Terms				1.000
2023			$ 0	$ 0
2024			0	0
2025			0	0
2026			0	0
2027			1,708,000	1,708,000
Thereafter			815,938,000	815,938,000
Senior debt, net			817,646,000	$ 817,646,000
Term loan credit | Eurodollar [Member]
Debt Instrument [Line Items]
Decrease to basis spread on variable rate	0.75%
Basis margin on variable rate				3.25%
Term loan credit | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Decrease to basis spread on variable rate	0.25%
Basis margin on variable rate				0.50%
Term loan credit | Debt Issuance Costs [Member]
Debt Instrument [Line Items]
Unamortized Debt Issuance Expense		$ 25,300,000
ABL credit facility | ABL credit facility [Member]
Debt Instrument [Line Items]
Debt Instrument, Term		5 years
Maximum borrowing capacity		$ 125,000,000
Line of Credit Facility, Covenant Terms				15
Line of Credit Facility, Covenant Compliance, Remaining Borrowing Capacity, Maximum			56,250,000	$ 56,250,000
ABL credit facility | Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 150,000,000
Term Loan Facility | Secured Debt
Debt Instrument [Line Items]
Debt Instrument, Term		7 years
Consolidated secured leverage ratio				100%
Repayments of secured debt			42,600,000
Accrued interest			600,000
Incremental term loans available		$ 500,000,000
ABL credit facility [Member]
Debt Instrument [Line Items]
Revolving credit facility commitments		$ 550,000,000
ABL Credit Facility amount available			$ 397,100,000	$ 397,100,000
Debt Instrument, Maturity Date				Feb. 17, 2026
Actual margin on variable rate			6.635%	6.635%
Required consolidated fixed charge coverage ratio, minimum			1.10	1.10
Actual fixed charge coverage ratio			1.16	1.16
2023			$ 0	$ 0
2024			0	0
2025			0	0
2026			90,000,000	90,000,000
2027			0	0
Thereafter			0	0
Senior debt, net			$ 90,000,000	$ 90,000,000
Maximum [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage				0.375%
Maximum [Member] | Term loan credit | Eurodollar [Member]
Debt Instrument [Line Items]
Basis margin on variable rate		4%
Maximum [Member] | Term loan credit | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis margin on variable rate		0.75%
Maximum [Member] | ABL credit facility [Member] | SOFR [Member]
Debt Instrument [Line Items]
Basis margin on variable rate				2%
Minimum [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage				0.25%
Minimum [Member] | Term loan credit | Eurodollar [Member]
Debt Instrument [Line Items]
Basis margin on variable rate				3.25%
Minimum [Member] | Term loan credit | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis margin on variable rate				0.50%
Minimum [Member] | ABL credit facility [Member] | SOFR [Member]
Debt Instrument [Line Items]
Basis margin on variable rate				1.50%

Senior Notes (Details)

Senior Notes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Feb. 17, 2021
The Notes | Senior Notes [Member]
Senior Notes [Line Items]
Additional percentage of principal amount redeemed	100%
Percentage of principal amount purchased	101%
Debt Issuance Costs [Member]
Senior Notes [Line Items]
Unamortized Debt Issuance Expense	$ 15,300
Senior Notes [Member]
Senior Notes [Line Items]
Initial borrowing in senior notes	450,000	$ 450,000
Unamortized Debt Issuance Expense	$ 11,600	$ 15,700
Debt Instrument, Redemption Price, Percentage	106.375%
Debt Instrument, Interest Rate, Stated Percentage		6.375%
Senior note redemption price, percent	40%

Fair Value (Details)

Fair Value (Details) - Senior Notes [Member] - USD ($) $ in Thousands	Mar. 31, 2023	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	376,875
Difference	$ (73,125)

Other Charges (Details)

Other Charges (Details) - USD ($) $ in Thousands		3 Months Ended
	Feb. 17, 2021	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Restructuring Cost and Reserve [Line Items]
Depreciation of property assets		$ 16,609	$ 18,247
Charges & Adjustments		0
Accrued Charges		1,434		$ 2,202
Payments & Adjustments		(768)
Acima Holdings restricted stock agreements(2)		115,681	41,410
Depreciation and amortization		12,881	14,529
Other charges		127,570	70,148
Non-Cash Charges [Member]
Restructuring Cost and Reserve [Line Items]
Acima Holdings restricted stock agreements(2)		109,473
Depreciation and amortization		18,234
Other		(137)
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Charges & Adjustments		0
Accrued Charges		1,434		$ 2,202
Payments & Adjustments		(768)
Acima Holdings [Member]
Restructuring Cost and Reserve [Line Items]
Stock consideration, shares	10,779,923
Other intangible assets	$ 520,000
Depreciation of property assets		4,000	4,000
Amortization		14,200	22,100
Acima Holdings restricted stock agreements(2)		$ 109,500	$ 36,600
Acima Holdings [Member] | Restricted Stock Units [Member]
Restructuring Cost and Reserve [Line Items]
Stock consideration, shares	8,096,595	700,000	5,200,000
Stock consideration, value	$ 414,100
Award vesting period	36 months
Acima Holdings [Member] | Software [Member]
Restructuring Cost and Reserve [Line Items]
Property assets	$ 170,000
Acima Holdings [Member] | Transaction costs [Member]
Restructuring Cost and Reserve [Line Items]
Charges & Adjustments			$ 200

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands		3 Months Ended
	Feb. 17, 2021	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Segment Reporting Information [Line Items]
Total revenues		$ 1,016,061	$ 1,159,722
Gross profit		506,264	546,095
Operating (Ioss) profit		(35,113)	11,043
Depreciation and amortization		12,881	14,529
Capital expenditures		9,534	16,403
On rent		943,487		$ 989,869
Held for rent		126,762		134,959
Assets		2,741,125		2,763,619
Depreciation of property assets		$ 16,609	$ 18,247
Weighted-average shares outstanding		55,157,000	53,751,000
Acima Holdings restricted stock agreements(2)		$ 115,681	$ 41,410
Acima Holdings [Member]
Segment Reporting Information [Line Items]
Amortization		14,200	22,100
Depreciation of property assets		4,000	4,000
Stock consideration, shares	10,779,923
Acima Holdings restricted stock agreements(2)		109,500	36,600
Rent-A-Center Business [Member]
Segment Reporting Information [Line Items]
Total revenues		485,008	518,505
Gross profit		331,725	363,380
Operating (Ioss) profit		68,961	100,176
Depreciation and amortization		4,970	6,413
Capital expenditures		2,977	13,408
On rent		450,162		465,095
Held for rent		116,936		124,117
Assets		1,003,245		1,067,875
Acima [Member]
Segment Reporting Information [Line Items]
Total revenues		483,847	599,377
Gross profit		155,144	164,228
Operating (Ioss) profit		53,870	9,600
Depreciation and amortization		427	582
Capital expenditures		58	46
On rent		472,550		503,795
Held for rent		605		373
Assets		1,135,502		1,198,879
Mexico [Member]
Segment Reporting Information [Line Items]
Total revenues		17,430	15,712
Gross profit		12,391	11,101
Operating (Ioss) profit		995	2,066
Depreciation and amortization		242	149
Capital expenditures		716	222
On rent		20,775		20,979
Held for rent		9,221		10,469
Assets		53,854		51,225
Franchising [Member]
Segment Reporting Information [Line Items]
Total revenues		29,776	26,128
Gross profit		7,004	7,386
Operating (Ioss) profit		4,760	4,790
Depreciation and amortization		38	37
Capital expenditures		1	112
Assets		18,009		18,194
Total Segments [Member]
Segment Reporting Information [Line Items]
Operating (Ioss) profit		128,586	116,632
Depreciation and amortization		5,677	7,181
Capital expenditures		3,752	13,788
Assets		2,210,610		2,336,173
Corporate [Member]
Segment Reporting Information [Line Items]
Operating (Ioss) profit		(163,699)	(105,589)
Depreciation and amortization		7,204	7,348
Capital expenditures		5,782	$ 2,615
Assets		$ 530,515		$ 427,446

Common Stock and Stock-Based _2

Common Stock and Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Feb. 17, 2021	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		$ 115,681	$ 41,410
Performance-based restricted stock units granted		599,397
Time-vesting restricted stock units granted		340,546
Share Repurchase 500 Million
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Repurchase Program, Authorized Amount		$ 500,000
Remaining Authorized Repurchase Amount		285,000
Acima Holdings [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		109,500	$ 36,600
Stock consideration, shares	10,779,923
Common stock price	$ 51.14
Share-Based Payment Arrangement, Accelerated Cost		$ 78,400
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	700,000	5,200,000
Stock consideration, value	$ 414,100
2016 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		$ 6,200	$ 4,900
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value of restricted stock units granted		$ 26.18
Performance-based restricted stock units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value of restricted stock units granted		$ 32.30

Contingencies (Details)

Contingencies (Details) - Indemnification Agreement - USD ($) $ in Millions	Feb. 17, 2024	Oct. 01, 2020
Loss Contingencies [Line Items]
Escrowed indemnity amount		$ 50
Forecast
Loss Contingencies [Line Items]
Amount to be released	$ 45

Earnings (Loss) Per Common Sh_3

Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Feb. 17, 2021	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Common Share
Net earnings (loss)		$ 47,330	$ (4,237)
Weighted-average shares outstanding		55,157,000	53,751,000
Effect of dilutive stock awards		1,280,000	0
Weighted-average dilutive shares		56,437,000	53,751,000
Basic earnings (loss) per common share		$ 0.86	$ (0.08)
Diluted earnings (loss) per common share(1) (2)		$ 0.84	$ (0.08)
Acima Holdings [Member]
Earnings Per Common Share
Stock consideration, shares	10,779,923
Restricted Stock Units [Member] | Acima Holdings [Member]
Earnings Per Common Share
Stock consideration, shares	8,096,595	700,000	5,200,000
Retained Earnings [Member]
Earnings Per Common Share
Net earnings (loss)		$ 47,330	$ (4,237)
Performance-based restricted stock units [Member]
Earnings Per Common Share
Anti-dilutive securities		790,000	984,000
Stock options [Member]
Earnings Per Common Share
Anti-dilutive securities		418,000	1,068,000
Restricted share units [Member]
Earnings Per Common Share
Anti-dilutive securities		336,000	5,959,000