Jersey, Channel Islands | N/A | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||
70 St. Mary Axe London EC3A 8BE United Kingdom (Address of principal executive offices) | Not applicable (Zip Code) |
Title of each class | Trading Symbol(s) | Name of exchange on which registered | ||||||
Ordinary Shares, no par value | CLVT | New York Stock Exchange | ||||||
5.25% Series A Mandatory Convertible Preferred Shares, no par value | CLVT PR A | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||||||||
Emerging growth company | ☐ |
(in thousands, except per share data) | September 30, 2021 | |||||||||||||
3 months ended | 9 months ended | |||||||||||||
Cost of revenues | $ | 374 | $ | (21,852) | ||||||||||
Selling, general and administrative costs | (3,626) | (56,469) | ||||||||||||
Restructuring and impairment | 8,555 | (3,697) | ||||||||||||
Total operating expenses | 5,303 | (82,018) | ||||||||||||
Loss before interest expense and income tax | 5,303 | (82,018) | ||||||||||||
Loss before income tax | 5,303 | (82,018) | ||||||||||||
(Provision) benefit for income taxes | (191) | 5,776 | ||||||||||||
Net loss | 5,112 | (76,242) | ||||||||||||
Net income (loss) attributable to ordinary shares | 5,112 | (76,242) | ||||||||||||
Basic earnings per ordinary share | $ | 0.01 | $ | (0.12) | ||||||||||
Diluted earnings per ordinary share | $ | 0.01 | $ | (0.12) |
(in thousands) | September 30, 2021 | |||||||||||||
3 months ended | 9 months ended | |||||||||||||
Net loss | $ | 5,112 | $ | (76,242) | ||||||||||
Foreign currency translation adjustment | 5,559 | 4,243 | ||||||||||||
Total other comprehensive income, net of tax | 5,559 | 4,243 | ||||||||||||
Comprehensive income | 10,671 | (71,999) |
Page | |||||
Item 4. Controls and Procedures | |||||
Item 6. Exhibits | |||||
September 30, 2021 (As Restated) | December 31, 2020 | September 30, 2022 | December 31, 2021 | |||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||
Current assets: | Current assets: | Current assets: | ||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 2,479,880 | $ | 257,730 | Cash and cash equivalents | $ | 446.0 | $ | 430.9 | ||||||||||||
Restricted cash | Restricted cash | 1,857,657 | 14,678 | Restricted cash | 8.6 | 156.7 | ||||||||||||||||
Accounts receivable, net of allowance of $8,642 and $8,745 at September 30, 2021 and December 31, 2020, respectively | 610,755 | 737,733 | ||||||||||||||||||||
Accounts receivable, net | Accounts receivable, net | 748.6 | 906.4 | |||||||||||||||||||
Prepaid expenses | Prepaid expenses | 58,056 | 58,273 | Prepaid expenses | 98.8 | 76.6 | ||||||||||||||||
Other current assets | Other current assets | 42,192 | 79,150 | Other current assets | 71.5 | 66.6 | ||||||||||||||||
Assets held for sale | Assets held for sale | 78.3 | — | |||||||||||||||||||
Total current assets | Total current assets | 5,048,540 | 1,147,564 | Total current assets | 1,451.8 | 1,637.2 | ||||||||||||||||
Property and equipment, net | Property and equipment, net | 27,948 | 36,267 | Property and equipment, net | 56.9 | 83.8 | ||||||||||||||||
Other intangible assets, net | Other intangible assets, net | 6,964,081 | 7,370,350 | Other intangible assets, net | 9,248.9 | 10,392.4 | ||||||||||||||||
Goodwill | Goodwill | 5,999,322 | 6,042,964 | Goodwill | 2,804.4 | 7,904.9 | ||||||||||||||||
Other non-current assets | Other non-current assets | 28,998 | 31,334 | Other non-current assets | 100.5 | 50.8 | ||||||||||||||||
Deferred income taxes | Deferred income taxes | 28,469 | 29,863 | Deferred income taxes | 23.7 | 27.9 | ||||||||||||||||
Operating lease right-of-use assets | Operating lease right-of-use assets | 45,880 | 132,356 | Operating lease right-of-use assets | 62.4 | 86.0 | ||||||||||||||||
Total Assets | Total Assets | $ | 18,143,238 | $ | 14,790,698 | Total Assets | $ | 13,748.6 | $ | 20,183.0 | ||||||||||||
Liabilities and Shareholders’ Equity | Liabilities and Shareholders’ Equity | Liabilities and Shareholders’ Equity | ||||||||||||||||||||
Current liabilities: | Current liabilities: | Current liabilities: | ||||||||||||||||||||
Accounts payable | Accounts payable | $ | 94,494 | $ | 82,038 | Accounts payable | $ | 105.9 | $ | 129.2 | ||||||||||||
Accrued compensation | Accrued compensation | 107.5 | 150.6 | |||||||||||||||||||
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities | 559,693 | 569,682 | Accrued expenses and other current liabilities | 416.7 | 529.0 | ||||||||||||||||
Current portion of deferred revenues | Current portion of deferred revenues | 579,935 | 707,318 | Current portion of deferred revenues | 857.8 | 1,030.4 | ||||||||||||||||
Current portion of operating lease liability | Current portion of operating lease liability | 28,459 | 35,455 | Current portion of operating lease liability | 28.9 | 32.2 | ||||||||||||||||
Current portion of long-term debt | Current portion of long-term debt | 1,865,627 | 28,600 | Current portion of long-term debt | 57.4 | 30.6 | ||||||||||||||||
Liabilities held for sale | Liabilities held for sale | 58.3 | — | |||||||||||||||||||
Total current liabilities | Total current liabilities | 3,128,208 | 1,423,093 | Total current liabilities | 1,632.5 | 1,902.0 | ||||||||||||||||
Long-term debt | Long-term debt | 3,443,578 | 3,457,900 | Long-term debt | 5,417.1 | 5,456.3 | ||||||||||||||||
Warrant liabilities | Warrant liabilities | 195,952 | 312,751 | Warrant liabilities | 25.1 | 227.8 | ||||||||||||||||
Non-current portion of deferred revenues | Non-current portion of deferred revenues | 44,934 | 41,399 | Non-current portion of deferred revenues | 37.7 | 54.2 | ||||||||||||||||
Other non-current liabilities | Other non-current liabilities | 49,960 | 49,445 | Other non-current liabilities | 136.1 | 142.7 | ||||||||||||||||
Deferred income taxes | Deferred income taxes | 329,755 | 366,996 | Deferred income taxes | 350.5 | 380.1 | ||||||||||||||||
Operating lease liabilities | Operating lease liabilities | 58,443 | 104,324 | Operating lease liabilities | 75.0 | 94.0 | ||||||||||||||||
Total liabilities | Total liabilities | 7,250,830 | 5,755,908 | Total liabilities | 7,674.0 | 8,257.1 | ||||||||||||||||
Commitments and contingencies | 0 | 0 | ||||||||||||||||||||
Commitments and contingencies (Note 19) | Commitments and contingencies (Note 19) | |||||||||||||||||||||
Shareholders’ equity: | Shareholders’ equity: | Shareholders’ equity: | ||||||||||||||||||||
Preferred Shares, no par value; 14,375,000 shares authorized; 5.25% Mandatory Convertible Preferred Shares, Series A, 14,375,000 and 0 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 1,392,671 | — | ||||||||||||||||||||
Ordinary Shares, no par value; unlimited shares authorized at September 30, 2021 and December 31, 2020; 639,750,620 and 606,329,598 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 10,810,130 | 9,989,284 | ||||||||||||||||||||
Treasury Shares, at cost; 6,325,860 and 6,325,860 at September 30, 2021 and December 31, 2020, respectively | (196,038) | (196,038) | ||||||||||||||||||||
Accumulated other comprehensive income | 318,008 | 492,382 | ||||||||||||||||||||
Preferred Shares, no par value; 14,375,000 shares authorized; 5.25% Mandatory Convertible Preferred Shares, Series A, 14,375,000 shares issued and outstanding as of both September 30, 2022 and December 31, 2021 | Preferred Shares, no par value; 14,375,000 shares authorized; 5.25% Mandatory Convertible Preferred Shares, Series A, 14,375,000 shares issued and outstanding as of both September 30, 2022 and December 31, 2021 | 1,392.6 | 1,392.6 | |||||||||||||||||||
Ordinary Shares, no par value; unlimited shares authorized at September 30, 2022 and December 31, 2021; 674,166,494 and 683,139,210 shares issued, and 673,801,480 and 683,139,210 shares outstanding at September 30, 2022 and December 31, 2021, respectively | Ordinary Shares, no par value; unlimited shares authorized at September 30, 2022 and December 31, 2021; 674,166,494 and 683,139,210 shares issued, and 673,801,480 and 683,139,210 shares outstanding at September 30, 2022 and December 31, 2021, respectively | 11,718.4 | 11,827.9 | |||||||||||||||||||
Treasury shares, at cost; 365,014 and 547,136 shares as of September 30, 2022 and December 31, 2021, respectively | Treasury shares, at cost; 365,014 and 547,136 shares as of September 30, 2022 and December 31, 2021, respectively | (11.3) | (16.9) | |||||||||||||||||||
Accumulated other comprehensive (loss) income | Accumulated other comprehensive (loss) income | (1,069.7) | 326.7 | |||||||||||||||||||
Accumulated deficit | Accumulated deficit | (1,432,363) | (1,250,838) | Accumulated deficit | (5,955.4) | (1,604.4) | ||||||||||||||||
Total shareholders’ equity | Total shareholders’ equity | 10,892,408 | 9,034,790 | Total shareholders’ equity | 6,074.6 | 11,925.9 | ||||||||||||||||
Total Liabilities and Shareholders’ Equity | Total Liabilities and Shareholders’ Equity | $ | 18,143,238 | $ | 14,790,698 | Total Liabilities and Shareholders’ Equity | $ | 13,748.6 | $ | 20,183.0 |
Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||||
2021 (As Restated) | 2020 (As Restated) | 2022 | 2021 | |||||||||||||||||||||||||||||||
Revenues, net | Revenues, net | $ | 442,117 | $ | 284,360 | Revenues, net | $ | 635.7 | $ | 442.1 | ||||||||||||||||||||||||
Operating expenses: | Operating expenses: | Operating expenses: | ||||||||||||||||||||||||||||||||
Cost of revenues | Cost of revenues | (140,737) | (93,554) | Cost of revenues | 223.7 | 140.7 | ||||||||||||||||||||||||||||
Selling, general and administrative costs | Selling, general and administrative costs | (144,845) | (131,526) | Selling, general and administrative costs | 169.5 | 144.8 | ||||||||||||||||||||||||||||
Depreciation | (2,657) | (2,918) | ||||||||||||||||||||||||||||||||
Amortization | (128,026) | (65,696) | ||||||||||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 169.7 | 130.7 | |||||||||||||||||||||||||||||||
Restructuring and impairment | Restructuring and impairment | (7,066) | (3,192) | Restructuring and impairment | 26.0 | 7.1 | ||||||||||||||||||||||||||||
Other operating expense, net | (4,411) | (138) | ||||||||||||||||||||||||||||||||
Goodwill impairment | Goodwill impairment | 4,448.6 | — | |||||||||||||||||||||||||||||||
Other operating (income) expense, net | Other operating (income) expense, net | (26.6) | 4.4 | |||||||||||||||||||||||||||||||
Total operating expenses | Total operating expenses | (427,742) | (297,024) | Total operating expenses | 5,010.9 | 427.7 | ||||||||||||||||||||||||||||
Income (loss) from operations | Income (loss) from operations | 14,375 | (12,664) | Income (loss) from operations | (4,375.2) | 14.4 | ||||||||||||||||||||||||||||
Mark to market adjustment on financial instruments | 83,013 | (144,753) | ||||||||||||||||||||||||||||||||
Income (loss) before interest expense and income tax | 97,388 | (157,417) | ||||||||||||||||||||||||||||||||
Mark to market (gain) loss on financial instruments | Mark to market (gain) loss on financial instruments | (53.3) | (83.0) | |||||||||||||||||||||||||||||||
Interest expense and amortization of debt discount, net | Interest expense and amortization of debt discount, net | (65,194) | (20,244) | Interest expense and amortization of debt discount, net | 71.5 | 65.3 | ||||||||||||||||||||||||||||
Income (loss) before income tax | 32,194 | (177,661) | ||||||||||||||||||||||||||||||||
Income (loss) before income taxes | Income (loss) before income taxes | (4,393.4) | 32.1 | |||||||||||||||||||||||||||||||
Provision for income taxes | Provision for income taxes | (3,770) | (4,325) | Provision for income taxes | 22.1 | 3.7 | ||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | 28,424 | (181,986) | Net income (loss) | (4,415.5) | 28.4 | ||||||||||||||||||||||||||||
Dividends on preferred shares | Dividends on preferred shares | (22,431) | — | Dividends on preferred shares | 18.9 | 22.4 | ||||||||||||||||||||||||||||
Net income (loss) attributable to ordinary shares | Net income (loss) attributable to ordinary shares | $ | 5,993 | $ | (181,986) | Net income (loss) attributable to ordinary shares | $ | (4,434.4) | $ | 6.0 | ||||||||||||||||||||||||
Per share: | Per share: | Per share: | ||||||||||||||||||||||||||||||||
Basic | Basic | $ | 0.01 | $ | (0.47) | Basic | $ | (6.58) | $ | 0.01 | ||||||||||||||||||||||||
Diluted | Diluted | $ | 0.01 | $ | (0.47) | Diluted | $ | (6.64) | $ | (0.12) | ||||||||||||||||||||||||
Weighted average shares used to compute earnings per share: | Weighted average shares used to compute earnings per share: | Weighted average shares used to compute earnings per share: | ||||||||||||||||||||||||||||||||
Basic | Basic | 634,508,967 | 387,845,438 | Basic | 673,553,256 | 634,508,967 | ||||||||||||||||||||||||||||
Diluted | Diluted | 639,607,653 | 387,845,438 | Diluted | 675,179,693 | 643,902,777 |
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2021 (As Restated) | 2020 (As Restated) | 2022 | 2021 | |||||||||||||||||||||||||
Revenues, net | Revenues, net | $ | 1,316,192 | $ | 798,452 | Revenues, net | $ | 1,984.5 | $ | 1,316.2 | ||||||||||||||||||
Operating expenses: | Operating expenses: | Operating expenses: | ||||||||||||||||||||||||||
Cost of revenues | Cost of revenues | (438,311) | (268,614) | Cost of revenues | 717.0 | 438.3 | ||||||||||||||||||||||
Selling, general and administrative costs | Selling, general and administrative costs | (458,847) | (368,247) | Selling, general and administrative costs | 549.3 | 458.8 | ||||||||||||||||||||||
Depreciation | (9,243) | (8,151) | ||||||||||||||||||||||||||
Amortization | (383,270) | (168,049) | ||||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 521.7 | 392.6 | |||||||||||||||||||||||||
Restructuring and impairment | Restructuring and impairment | (125,685) | (26,792) | Restructuring and impairment | 56.9 | 125.7 | ||||||||||||||||||||||
Other operating (expense) income, net | (19,741) | 14,675 | ||||||||||||||||||||||||||
Goodwill impairment | Goodwill impairment | 4,448.6 | — | |||||||||||||||||||||||||
Other operating (income) expense, net | Other operating (income) expense, net | (64.9) | 19.7 | |||||||||||||||||||||||||
Total operating expenses | Total operating expenses | (1,435,097) | (825,178) | Total operating expenses | 6,228.6 | 1,435.1 | ||||||||||||||||||||||
Loss from operations | (118,905) | (26,726) | ||||||||||||||||||||||||||
Mark to market adjustment on financial instruments | 113,207 | (224,175) | ||||||||||||||||||||||||||
Income (loss) before interest expense and income tax | (5,698) | (250,901) | ||||||||||||||||||||||||||
Income (loss) from operations | Income (loss) from operations | (4,244.1) | (118.9) | |||||||||||||||||||||||||
Mark to market gain on financial instruments | Mark to market gain on financial instruments | (202.7) | (113.2) | |||||||||||||||||||||||||
Interest expense and amortization of debt discount, net | Interest expense and amortization of debt discount, net | (141,156) | (72,306) | Interest expense and amortization of debt discount, net | 193.3 | 141.2 | ||||||||||||||||||||||
Loss before income tax | (146,854) | (323,207) | ||||||||||||||||||||||||||
Income (loss) before income taxes | Income (loss) before income taxes | (4,234.7) | (146.9) | |||||||||||||||||||||||||
Provision for income taxes | Provision for income taxes | (12,240) | (13,693) | Provision for income taxes | 48.9 | 12.2 | ||||||||||||||||||||||
Net loss | (159,094) | (336,900) | ||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | (4,283.6) | (159.1) | |||||||||||||||||||||||||
Dividends on preferred shares | Dividends on preferred shares | (22,431) | — | Dividends on preferred shares | 56.3 | 22.4 | ||||||||||||||||||||||
Net loss attributable to ordinary shares | $ | (181,525) | $ | (336,900) | ||||||||||||||||||||||||
Net income (loss) attributable to ordinary shares | Net income (loss) attributable to ordinary shares | $ | (4,339.9) | $ | (181.5) | |||||||||||||||||||||||
Per share: | Per share: | Per share: | ||||||||||||||||||||||||||
Basic | Basic | $ | (0.29) | $ | (0.91) | Basic | $ | (6.41) | $ | (0.29) | ||||||||||||||||||
Diluted | Diluted | $ | (0.29) | $ | (0.91) | Diluted | $ | (6.66) | $ | (0.47) | ||||||||||||||||||
Weighted average shares used to compute earnings per share: | Weighted average shares used to compute earnings per share: | Weighted average shares used to compute earnings per share: | ||||||||||||||||||||||||||
Basic | Basic | 616,135,071 | 369,019,802 | Basic | 676,732,992 | 616,135,071 | ||||||||||||||||||||||
Diluted | Diluted | 616,135,071 | 369,019,802 | Diluted | 680,617,434 | 626,180,258 |
Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||
2021 (As Restated) | 2020 (As Restated) | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | $ | 28,424 | $ | (181,986) | Net income (loss) | $ | (4,415.5) | $ | 28.4 | ||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax: | Other comprehensive income (loss), net of tax: | Other comprehensive income (loss), net of tax: | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Interest rate swaps | 333 | 1,092 | Interest rate swaps | 34.9 | 0.4 | ||||||||||||||||||||||||||||||||||||||||
Defined benefit pension plans | Defined benefit pension plans | (4) | (15) | Defined benefit pension plans | — | — | ||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | Foreign currency translation adjustment | (241,420) | 9,359 | Foreign currency translation adjustment | (585.4) | (241.5) | ||||||||||||||||||||||||||||||||||||||||
Total other comprehensive income (loss), net of tax | (241,091) | 10,436 | ||||||||||||||||||||||||||||||||||||||||||||
Total other comprehensive (loss) income, net of tax | Total other comprehensive (loss) income, net of tax | (550.5) | (241.1) | |||||||||||||||||||||||||||||||||||||||||||
Comprehensive loss | Comprehensive loss | $ | (212,667) | $ | (171,550) | Comprehensive loss | $ | (4,966.0) | $ | (212.7) |
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||
2021 (As Restated) | 2020 (As Restated) | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||
Net loss | $ | (159,094) | $ | (336,900) | ||||||||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | $ | (4,283.6) | $ | (159.1) | |||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax: | Other comprehensive income (loss), net of tax: | Other comprehensive income (loss), net of tax: | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Interest rate swaps | 1,884 | (2,052) | Interest rate swaps | 50.6 | 1.9 | ||||||||||||||||||||||||||||||||||
Defined benefit pension plans | Defined benefit pension plans | (12) | (57) | Defined benefit pension plans | 0.1 | — | ||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | Foreign currency translation adjustment | (176,246) | 1,795 | Foreign currency translation adjustment | (1,447.1) | (176.3) | ||||||||||||||||||||||||||||||||||
Total other comprehensive loss, net of tax | (174,374) | (314) | ||||||||||||||||||||||||||||||||||||||
Total other comprehensive (loss) income, net of tax | Total other comprehensive (loss) income, net of tax | (1,396.4) | (174.4) | |||||||||||||||||||||||||||||||||||||
Comprehensive loss | Comprehensive loss | $ | (333,468) | $ | (337,214) | Comprehensive loss | $ | (5,680.0) | $ | (333.5) |
Ordinary Shares | Preferred Shares | Treasury Shares | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 606,329,598 | $ | 9,989,284 | — | $ | — | 6,325,860 | $ | (196,038) | $ | 492,382 | $ | (1,250,838) | $ | 9,034,790 | ||||||||||||||||||||||||||||||||||||||
Exercise of Private Placement Warrants | 212,174 | 3,592 | — | — | — | — | — | — | 3,592 | ||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 835,917 | 5,074 | — | — | — | — | — | — | 5,074 | ||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 15,958 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Shares returned to the Company for net share settlements | (434,059) | (4,489) | — | — | — | — | — | — | (4,489) | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares, net | 4,395,638 | 105,509 | — | — | — | — | — | — | 105,509 | ||||||||||||||||||||||||||||||||||||||||||||
Share-based award activity | — | 10,479 | — | — | — | — | — | — | 10,479 | ||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (55,951) | (55,951) | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 19,593 | — | 19,593 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 611,355,226 | $ | 10,109,449 | — | $ | — | 6,325,860 | $ | (196,038) | $ | 511,975 | $ | (1,306,789) | $ | 9,118,597 | ||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 1,581,518 | 9,761 | — | — | — | — | — | — | 9,761 | ||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 446,324 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Shares returned to the Company for net share settlements | (809,644) | (17,245) | — | — | — | — | — | — | (17,245) | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares, net | 206,052,933 | 5,780,933 | — | — | — | — | — | — | 5,780,933 | ||||||||||||||||||||||||||||||||||||||||||||
Share-based award activity | — | 12,816 | — | — | — | — | — | — | 12,816 | ||||||||||||||||||||||||||||||||||||||||||||
Purchase of ordinary shares | — | — | — | — | (177,206,779) | (5,052,165) | (5,052,165) | ||||||||||||||||||||||||||||||||||||||||||||||
Retirement of treasury shares | (177,206,779) | (5,052,165) | — | — | 177,206,779 | 5,052,165 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Issuance of preferred shares, net | — | — | 14,375,000 | 1,393,222 | — | — | — | — | 1,393,222 | ||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (131,567) | (131,567) | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 47,124 | — | 47,124 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 641,419,578 | $ | 10,843,549 | 14,375,000 | $ | 1,393,222 | 6,325,860 | $ | (196,038) | $ | 559,099 | $ | (1,438,356) | $ | 11,161,476 | ||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 328,531 | 2,415 | — | — | — | — | — | — | 2,415 | ||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 114,962 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Shares returned to the Company for net share settlements | (177,481) | 279 | — | — | — | — | — | — | 279 | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares, net | — | (688) | — | — | — | — | — | — | (688) |
Ordinary Shares | Preferred Shares | Treasury Shares | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 683.1 | $ | 11,827.9 | 14.4 | $ | 1,392.6 | 0.5 | $ | (16.9) | $ | 326.7 | $ | (1,604.4) | $ | 11,925.9 | ||||||||||||||||||||||||||||||||||||||
Reclassification of EBT Shares | (0.5) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 0.2 | 0.4 | — | — | — | — | — | — | 0.4 | ||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 0.7 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Shares returned to the Company for net share settlements | (0.4) | (5.4) | — | — | — | — | — | — | (5.4) | ||||||||||||||||||||||||||||||||||||||||||||
Share-based award activity | — | 26.9 | — | — | — | — | — | — | 26.9 | ||||||||||||||||||||||||||||||||||||||||||||
Repurchases of ordinary shares | (4.1) | — | — | — | 4.1 | (66.4) | — | — | (66.4) | ||||||||||||||||||||||||||||||||||||||||||||
Retirement of treasury shares | — | (34.8) | — | — | (2.1) | 33.3 | — | 1.5 | — | ||||||||||||||||||||||||||||||||||||||||||||
Sale of treasury shares | — | — | — | — | — | 1.3 | — | (0.7) | 0.6 | ||||||||||||||||||||||||||||||||||||||||||||
Dividends to preferred shareholders | — | — | — | — | — | — | — | (18.7) | (18.7) | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | 69.5 | 69.5 | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (223.2) | — | (223.2) | ||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | 679.0 | $ | 11,815.0 | 14.4 | $ | 1,392.6 | 2.5 | $ | (48.7) | $ | 103.5 | $ | (1,552.8) | $ | 11,709.6 | ||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | 0.1 | — | — | — | — | — | — | 0.1 | ||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 1.3 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Shares returned to the Company for net share settlements | (0.4) | (5.3) | — | — | — | — | — | — | (5.3) | ||||||||||||||||||||||||||||||||||||||||||||
Share-based award activity | — | 23.6 | — | — | — | — | — | — | 23.6 | ||||||||||||||||||||||||||||||||||||||||||||
Repurchases of ordinary shares | (6.6) | — | — | — | 6.6 | (108.6) | — | — | (108.6) | ||||||||||||||||||||||||||||||||||||||||||||
Retirement of treasury shares | — | (132.5) | — | — | (8.6) | 141.7 | — | (9.2) | — | ||||||||||||||||||||||||||||||||||||||||||||
Sale of treasury shares | — | — | — | — | — | — | — | 0.3 | 0.3 | ||||||||||||||||||||||||||||||||||||||||||||
Dividends to preferred shareholders | — | — | — | — | — | — | — | (18.7) | (18.7) | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | 62.4 | 62.4 | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (622.7) | — | (622.7) | ||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | 673.3 | $ | 11,700.9 | 14.4 | $ | 1,392.6 | 0.5 | $ | (15.6) | $ | (519.2) | $ | (1,518.0) | $ | 11,040.7 | ||||||||||||||||||||||||||||||||||||||
Ordinary Shares | Preferred Shares | Treasury Shares | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of ordinary shares | — | — | — | — | (2,599,700) | (65,215) | — | — | (65,215) | ||||||||||||||||||||||||||||||||||||||||||||
Retirement of treasury shares | (2,599,700) | (65,215) | — | — | 2,599,700 | 65,215 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Share-based award activity | — | 13,649 | — | — | — | — | — | — | 13,649 | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of preferred shares, net | — | — | — | (551) | — | — | — | — | (551) | ||||||||||||||||||||||||||||||||||||||||||||
Dividends to preferred stockholders | 664,730 | 16,141 | — | — | — | — | — | (22,431) | (6,290) | ||||||||||||||||||||||||||||||||||||||||||||
Net loss (As Restated) | — | — | — | — | — | — | — | 28,424 | 28,424 | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (241,091) | — | (241,091) | ||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 (As Restated) | 639,750,620 | $ | 10,810,130 | 14,375,000 | $ | 1,392,671 | 6,325,860 | $ | (196,038) | $ | 318,008 | $ | (1,432,363) | $ | 10,892,408 | ||||||||||||||||||||||||||||||||||||||
Ordinary Shares | Preferred Shares | Treasury Shares | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Shareholders’ Equity | Ordinary Shares | Preferred Shares | Treasury Shares | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 306,874,115 | $ | 2,144,372 | — | $ | — | $ | — | $ | (4,879) | $ | (890,894) | $ | 1,248,599 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustment to opening Accumulated deficit related to adoption of ASC Topic 326 | — | — | — | — | — | — | (9,319) | (9,319) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of public warrants | 28,880,098 | 277,526 | — | — | — | — | — | 277,526 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 3,715,455 | 1,182 | — | — | — | — | — | 1,182 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 169,842 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares returned to the Company for net share settlements | (2,301,458) | (10,302) | — | — | — | — | — | (10,302) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares, net | 27,600,000 | 539,714 | — | — | — | — | — | 539,714 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based award activity | — | 16,384 | — | — | — | — | — | 16,384 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss (As Restated) | — | — | — | — | — | — | (129,633) | (129,633) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (8,470) | — | (8,470) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | 364,938,052 | 2,968,876 | — | — | — | (13,349) | (1,029,846) | 1,925,681 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 3,723,332 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 2,528 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares returned to the Company for net share settlements | (2,311,293) | (15,118) | — | — | — | — | — | (15,118) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares, net | 20,982,500 | 304,030 | — | — | — | — | — | 304,030 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based award activity | — | 4,322 | — | — | — | — | — | 4,322 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss (As Restated) | — | — | — | — | — | — | (25,281) | (25,281) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (2,280) | — | (2,280) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 (As Restated) | 387,335,119 | 3,262,110 | — | — | — | (15,629) | (1,055,127) | 2,191,354 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | Balance at June 30, 2022 | 673.3 | $ | 11,700.9 | 14.4 | $ | 1,392.6 | 0.5 | $ | (15.6) | $ | (519.2) | $ | (1,518.0) | $ | 11,040.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | Exercise of stock options | 4,068,307 | 125 | — | — | — | — | — | 125 | Exercise of stock options | 0.1 | 0.3 | — | — | — | — | — | — | 0.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | Vesting of restricted stock units | 2,459 | — | — | — | — | — | — | — | Vesting of restricted stock units | 0.5 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares returned to the Company for net share settlements | Shares returned to the Company for net share settlements | (2,184,918) | (3,136) | — | — | — | — | — | (3,136) | Shares returned to the Company for net share settlements | (0.2) | (3.1) | — | — | — | — | — | — | (3.1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based award activity | Share-based award activity | — | 5,520 | — | — | — | — | — | 5,520 | Share-based award activity | — | 20.3 | — | — | — | — | — | — | 20.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss (As Restated) | — | — | — | — | — | — | (181,986) | (181,986) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | 10,436 | — | 10,436 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 (As Restated) | 389,220,967 | $ | 3,264,619 | — | $ | — | $ | — | $ | (5,193) | $ | (1,237,113) | $ | 2,022,313 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sale of treasury shares | Sale of treasury shares | 0.1 | — | — | — | (0.1) | 4.3 | — | (3.0) | 1.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to preferred shareholders | Dividends to preferred shareholders | — | — | — | — | — | — | — | (18.9) | (18.9) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | Net loss | — | — | — | — | — | — | — | (4,415.5) | (4,415.5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | Other comprehensive loss | — | — | — | — | — | — | (550.5) | — | (550.5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | Balance at September 30, 2022 | 673.8 | $ | 11,718.4 | 14.4 | $ | 1,392.6 | 0.4 | $ | (11.3) | $ | (1,069.7) | $ | (5,955.4) | $ | 6,074.6 |
Ordinary Shares | Preferred Shares | Treasury Shares | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 606.3 | $ | 9,989.2 | — | $ | — | 6.3 | $ | (196.0) | $ | 492.4 | $ | (1,250.8) | $ | 9,034.8 | ||||||||||||||||||||||||||||||||||||||
Exercise of Private Placement Warrants | 0.2 | 3.6 | — | — | — | — | — | — | 3.6 | ||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 0.8 | 5.1 | — | — | — | — | — | — | 5.1 | ||||||||||||||||||||||||||||||||||||||||||||
Shares returned to the Company for net share settlements | (0.4) | (4.5) | — | — | — | — | — | — | (4.5) | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares, net | 4.4 | 105.5 | — | — | — | — | — | — | 105.5 | ||||||||||||||||||||||||||||||||||||||||||||
Share-based award activity | — | 10.5 | — | — | — | — | — | — | 10.5 | ||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (56.0) | (56.0) | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 19.6 | — | 19.6 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 611.3 | $ | 10,109.4 | — | $ | — | 6.3 | $ | (196.0) | $ | 512.0 | $ | (1,306.8) | $ | 9,118.6 | ||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 1.6 | 9.7 | — | — | — | — | — | — | 9.7 | ||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 0.5 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Shares returned to the Company for net share settlements | (0.8) | (17.2) | — | — | — | — | — | — | (17.2) | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares, net | 206.0 | 5,780.9 | — | — | — | — | — | — | 5,780.9 | ||||||||||||||||||||||||||||||||||||||||||||
Share-based award activity | — | 12.9 | — | — | — | — | — | — | 12.9 | ||||||||||||||||||||||||||||||||||||||||||||
Repurchase of ordinary shares | — | — | — | — | (177.2) | (5,052.2) | — | — | (5,052.2) | ||||||||||||||||||||||||||||||||||||||||||||
Retirement of treasury shares | (177.2) | (5,052.2) | — | — | 177.2 | 5,052.2 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of preferred shares, net | — | — | 14.4 | 1,393.2 | — | — | — | — | 1,393.2 | ||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (131.5) | (131.5) | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 47.1 | — | 47.1 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 641.4 | $ | 10,843.5 | 14.4 | $ | 1,393.2 | 6.3 | $ | (196.0) | $ | 559.1 | $ | (1,438.3) | $ | 11,161.5 | ||||||||||||||||||||||||||||||||||||||
Ordinary Shares | Preferred Shares | Treasury Shares | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 641.4 | $ | 10,843.5 | 14.4 | $ | 1,393.2 | 6.3 | $ | (196.0) | $ | 559.1 | $ | (1,438.3) | $ | 11,161.5 | ||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 0.3 | 2.5 | — | — | — | — | — | — | 2.5 | ||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 0.1 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Shares returned to the Company for net share settlements | (0.2) | 0.3 | — | — | — | — | — | — | 0.3 | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares, net | — | (0.7) | — | — | — | — | — | — | (0.7) | ||||||||||||||||||||||||||||||||||||||||||||
Share-based award activity | — | 13.6 | — | — | — | — | — | — | 13.6 | ||||||||||||||||||||||||||||||||||||||||||||
Repurchases of ordinary shares | — | — | — | — | (2.6) | (65.2) | — | — | (65.2) | ||||||||||||||||||||||||||||||||||||||||||||
Retirement of treasury shares | (2.6) | (65.2) | — | — | 2.6 | 65.2 | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of preferred shares, net | — | — | — | (0.5) | — | — | — | — | (0.5) | ||||||||||||||||||||||||||||||||||||||||||||
Dividends to preferred shareholders | 0.7 | 16.1 | — | — | — | — | — | (22.4) | (6.3) | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | 28.4 | 28.4 | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (241.1) | — | (241.1) | ||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | 639.7 | $ | 10,810.1 | 14.4 | $ | 1,392.7 | 6.3 | $ | (196.0) | $ | 318.0 | $ | (1,432.3) | $ | 10,892.5 | ||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
2021 (As Restated) | 2020 (As Restated) | 2022 | 2021 | |||||||||||||||||||||||||||||||
Cash Flows From Operating Activities | Cash Flows From Operating Activities | Cash Flows From Operating Activities | ||||||||||||||||||||||||||||||||
Net loss | $ | (159,094) | $ | (336,900) | ||||||||||||||||||||||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | $ | (4,283.6) | $ | (159.1) | |||||||||||||||||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 392,513 | 176,200 | Depreciation and amortization | 521.7 | 392.6 | ||||||||||||||||||||||||||||
Bad debt expense | 6,832 | 1,830 | ||||||||||||||||||||||||||||||||
Deferred income tax benefit | (11,076) | (7,420) | ||||||||||||||||||||||||||||||||
Deferred income taxes | Deferred income taxes | (3.3) | (11.1) | |||||||||||||||||||||||||||||||
Share-based compensation | Share-based compensation | 3,054 | 26,344 | Share-based compensation | 66.5 | 3.1 | ||||||||||||||||||||||||||||
Restructuring and impairment | 50,979 | 4,880 | ||||||||||||||||||||||||||||||||
Restructuring and impairment, including Goodwill | Restructuring and impairment, including Goodwill | 4,469.9 | 51.0 | |||||||||||||||||||||||||||||||
Loss (gain) on foreign currency forward contracts | Loss (gain) on foreign currency forward contracts | 4,026 | (2,903) | Loss (gain) on foreign currency forward contracts | 9.4 | 4.0 | ||||||||||||||||||||||||||||
Mark to market adjustment on contingent and phantom shares | (25,085) | 30,839 | ||||||||||||||||||||||||||||||||
Mark to market adjustment on financial instruments | (113,207) | 224,175 | ||||||||||||||||||||||||||||||||
Gain on disposal of business | — | (1,052) | ||||||||||||||||||||||||||||||||
Deferred finance charges | 9,050 | 3,140 | ||||||||||||||||||||||||||||||||
Mark to market adjustment on contingent shares | Mark to market adjustment on contingent shares | — | (25.1) | |||||||||||||||||||||||||||||||
Mark to market gain on financial instruments | Mark to market gain on financial instruments | (202.7) | (113.2) | |||||||||||||||||||||||||||||||
Amortization of debt issuance costs | Amortization of debt issuance costs | 11.4 | 9.1 | |||||||||||||||||||||||||||||||
Other operating activities | Other operating activities | 3,565 | (3,902) | Other operating activities | (58.3) | 10.4 | ||||||||||||||||||||||||||||
Changes in operating assets and liabilities: | Changes in operating assets and liabilities: | Changes in operating assets and liabilities: | ||||||||||||||||||||||||||||||||
Accounts receivable | Accounts receivable | 114,038 | 129,398 | Accounts receivable | 76.9 | 114.0 | ||||||||||||||||||||||||||||
Prepaid expenses | Prepaid expenses | (887) | (13,335) | Prepaid expenses | (29.4) | (0.9) | ||||||||||||||||||||||||||||
Other assets | Other assets | 60,749 | 62,818 | Other assets | (57.5) | 60.7 | ||||||||||||||||||||||||||||
Accounts payable | Accounts payable | 13,550 | (8,394) | Accounts payable | (15.8) | 13.6 | ||||||||||||||||||||||||||||
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities | 90,439 | (65,062) | Accrued expenses and other current liabilities | (54.0) | 90.4 | ||||||||||||||||||||||||||||
Deferred revenues | Deferred revenues | (116,312) | (93,926) | Deferred revenues | (68.2) | (116.3) | ||||||||||||||||||||||||||||
Operating lease right of use assets | Operating lease right of use assets | 16,838 | 5,826 | Operating lease right of use assets | 10.1 | 16.8 | ||||||||||||||||||||||||||||
Operating lease liabilities | Operating lease liabilities | (37,362) | (6,611) | Operating lease liabilities | (15.3) | (37.4) | ||||||||||||||||||||||||||||
Other liabilities | Other liabilities | 2,905 | 2,077 | Other liabilities | (5.4) | 2.9 | ||||||||||||||||||||||||||||
Net cash provided by operating activities | Net cash provided by operating activities | 305,515 | 128,022 | Net cash provided by operating activities | 372.4 | 305.5 | ||||||||||||||||||||||||||||
Cash Flows From Investing Activities | Cash Flows From Investing Activities | Cash Flows From Investing Activities | ||||||||||||||||||||||||||||||||
Capital expenditures | Capital expenditures | (86,197) | (78,597) | Capital expenditures | (156.5) | (86.2) | ||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | Acquisitions, net of cash acquired | (14,314) | (885,323) | Acquisitions, net of cash acquired | (9.3) | (14.3) | ||||||||||||||||||||||||||||
Acquisition of intangible assets | — | (5,982) | ||||||||||||||||||||||||||||||||
Proceeds from sale of product line, net of restricted cash | — | 3,751 | ||||||||||||||||||||||||||||||||
Acquisition of cost method investment | Acquisition of cost method investment | (5.0) | — | |||||||||||||||||||||||||||||||
Net cash used in investing activities | Net cash used in investing activities | (100,511) | (966,151) | Net cash used in investing activities | (170.8) | (100.5) | ||||||||||||||||||||||||||||
Cash Flows From Financing Activities | Cash Flows From Financing Activities | Cash Flows From Financing Activities | ||||||||||||||||||||||||||||||||
Proceeds from issuance of debt | Proceeds from issuance of debt | 2,000,000 | 360,000 | Proceeds from issuance of debt | — | 2,000.0 | ||||||||||||||||||||||||||||
Redemption of Notes not exchanged | Redemption of Notes not exchanged | (157,424) | — | Redemption of Notes not exchanged | — | (157.4) | ||||||||||||||||||||||||||||
Principal payments on term loan | Principal payments on term loan | (21,450) | (9,450) | Principal payments on term loan | (21.5) | (21.5) | ||||||||||||||||||||||||||||
Repayments of revolving credit facility | — | (65,000) | ||||||||||||||||||||||||||||||||
Payment of debt issuance costs | (7,471) | (5,267) | ||||||||||||||||||||||||||||||||
Contingent purchase price payment | — | (4,115) | ||||||||||||||||||||||||||||||||
Payment of debt issuance costs and discounts | Payment of debt issuance costs and discounts | (2.1) | (7.5) | |||||||||||||||||||||||||||||||
Proceeds from issuance of preferred shares | Proceeds from issuance of preferred shares | 1,392,671 | — | Proceeds from issuance of preferred shares | — | 1,392.7 | ||||||||||||||||||||||||||||
Proceeds from issuance of ordinary shares | Proceeds from issuance of ordinary shares | — | 728.1 | |||||||||||||||||||||||||||||||
Proceeds from issuance of treasury shares | Proceeds from issuance of treasury shares | 2.2 | — | |||||||||||||||||||||||||||||||
Repurchases of ordinary shares | Repurchases of ordinary shares | (175.0) | (65.2) | |||||||||||||||||||||||||||||||
Cash dividends on preferred shares | Cash dividends on preferred shares | (56.6) | — | |||||||||||||||||||||||||||||||
Proceeds from stock options exercised | Proceeds from stock options exercised | 0.8 | 17.3 | |||||||||||||||||||||||||||||||
Payments related to finance lease | Payments related to finance lease | (1.5) | — | |||||||||||||||||||||||||||||||
Payments related to tax withholding for stock-based compensation | Payments related to tax withholding for stock-based compensation | (13.8) | (21.5) | |||||||||||||||||||||||||||||||
Net cash (used in) provided by financing activities | Net cash (used in) provided by financing activities | (267.5) | 3,865.0 | |||||||||||||||||||||||||||||||
Effects of exchange rates | Effects of exchange rates | (64.5) | (4.9) | |||||||||||||||||||||||||||||||
Proceeds from issuance of ordinary shares | 728,080 | 843,752 | ||||||||||||||||||||||||||||||||
Repurchases of ordinary shares | (65,215) | — | ||||||||||||||||||||||||||||||||
Cash dividends on preferred shares | (1) | |||||||||||||||||||||||||||||||||
Proceeds from warrant exercises | — | 277,526 | ||||||||||||||||||||||||||||||||
Proceeds from stock options exercised | 17,250 | 1,307 | ||||||||||||||||||||||||||||||||
Payments related to tax withholding for stock-based compensation | (21,455) | (28,674) | ||||||||||||||||||||||||||||||||
Net cash provided by financing activities | 3,864,985 | 1,370,079 | ||||||||||||||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents(1) | Net (decrease) increase in cash and cash equivalents(1) | $ | 17.7 | $ | 2,222.2 | |||||||||||||||||||||||||||||
Net (decrease) increase in restricted cash | Net (decrease) increase in restricted cash | (148.1) | 1,842.9 |
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
2021 (As Restated) | 2020 (As Restated) | 2022 | 2021 | |||||||||||||||||||||||||||||||
Effects of exchange rates | (4,860) | (6,447) | ||||||||||||||||||||||||||||||||
Net increase in cash and cash equivalents, and restricted cash | 4,065,129 | 525,503 | ||||||||||||||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents, and restricted cash | Net (decrease) increase in cash and cash equivalents, and restricted cash | (130.4) | 4,065.1 | |||||||||||||||||||||||||||||||
Beginning of period: | Beginning of period: | Beginning of period: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 257,730 | $ | 76,130 | Cash and cash equivalents | $ | 430.9 | $ | 257.7 | ||||||||||||||||||||||||
Restricted cash | Restricted cash | 14,678 | 9 | Restricted cash | 156.7 | 14.7 | ||||||||||||||||||||||||||||
Total cash and cash equivalents, and restricted cash, beginning of period | Total cash and cash equivalents, and restricted cash, beginning of period | 272,408 | 76,139 | Total cash and cash equivalents, and restricted cash, beginning of period | 587.6 | 272.4 | ||||||||||||||||||||||||||||
Cash and cash equivalents, and restricted cash, end of period | 4,337,537 | 601,642 | ||||||||||||||||||||||||||||||||
End of period: | End of period: | End of period: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | 2,479,880 | 601,075 | ||||||||||||||||||||||||||||||||
Cash and cash equivalents(1) | Cash and cash equivalents(1) | 448.6 | 2,479.9 | |||||||||||||||||||||||||||||||
Restricted cash | Restricted cash | 1,857,657 | 567 | Restricted cash | 8.6 | 1,857.6 | ||||||||||||||||||||||||||||
Total cash and cash equivalents, and restricted cash, end of period | Total cash and cash equivalents, and restricted cash, end of period | $ | 4,337,537 | $ | 601,642 | Total cash and cash equivalents, and restricted cash, end of period | $ | 457.2 | $ | 4,337.5 | ||||||||||||||||||||||||
Supplemental Cash Flow Information: | Supplemental Cash Flow Information: | Supplemental Cash Flow Information: | ||||||||||||||||||||||||||||||||
Cash paid for interest | Cash paid for interest | $ | 97,401 | $ | 61,796 | Cash paid for interest | $ | 152.2 | $ | 97.4 | ||||||||||||||||||||||||
Cash paid for income tax | Cash paid for income tax | $ | 22,387 | $ | 20,147 | Cash paid for income tax | $ | 44.2 | $ | 22.4 | ||||||||||||||||||||||||
Capital expenditures included in accounts payable | Capital expenditures included in accounts payable | $ | 6,612 | $ | 922 | Capital expenditures included in accounts payable | $ | 4.8 | $ | 6.6 | ||||||||||||||||||||||||
Non-Cash Financing Activities: | Non-Cash Financing Activities: | Non-Cash Financing Activities: | ||||||||||||||||||||||||||||||||
Shares issued to Capri Acquisition Topco Limited | Shares issued to Capri Acquisition Topco Limited | $ | 5,052,165 | $ | — | Shares issued to Capri Acquisition Topco Limited | — | 5,052.2 | ||||||||||||||||||||||||||
Issuance of preferred shares, net | (5,117,380) | — | ||||||||||||||||||||||||||||||||
Retirement of treasury shares | Retirement of treasury shares | (175.0) | (5,117.4) | |||||||||||||||||||||||||||||||
Shares issued as contingent stock consideration associated with the DRG acquisition | Shares issued as contingent stock consideration associated with the DRG acquisition | 61,619 | — | Shares issued as contingent stock consideration associated with the DRG acquisition | — | 61.6 | ||||||||||||||||||||||||||||
Shares issued as contingent stock consideration associated with the CPA Global acquisition | Shares issued as contingent stock consideration associated with the CPA Global acquisition | 43,890 | — | Shares issued as contingent stock consideration associated with the CPA Global acquisition | — | 43.9 | ||||||||||||||||||||||||||||
Shares issued as dividends on our 5.25% Series A Mandatory Convertible Preferred Shares | Shares issued as dividends on our 5.25% Series A Mandatory Convertible Preferred Shares | 16,141 | — | Shares issued as dividends on our 5.25% Series A Mandatory Convertible Preferred Shares | — | 16.1 | ||||||||||||||||||||||||||||
Dividends accrued on our 5.25% Series A Mandatory Convertible Preferred Shares | Dividends accrued on our 5.25% Series A Mandatory Convertible Preferred Shares | 6,289 | — | Dividends accrued on our 5.25% Series A Mandatory Convertible Preferred Shares | 6.2 | 6.3 | ||||||||||||||||||||||||||||
Treasury shares sold by Trust | Treasury shares sold by Trust | 4.3 | — | |||||||||||||||||||||||||||||||
Total Non-Cash Financing Activities | Total Non-Cash Financing Activities | $ | 62,724 | $ | — | Total Non-Cash Financing Activities | $ | (164.5) | $ | 62.7 | ||||||||||||||||||||||||
(1) Includes $2.6 of cash and cash equivalents that was reclassified to current assets held for sale in the Condensed Consolidated Balance Sheet as of September 30, 2022 (see Note 5 - Assets Held for Sale and Divested Operations for additional information) | (1) Includes $2.6 of cash and cash equivalents that was reclassified to current assets held for sale in the Condensed Consolidated Balance Sheet as of September 30, 2022 (see Note 5 - Assets Held for Sale and Divested Operations for additional information) |
Three Months Ended September 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
Revenues, net (1) | $ | 51,626 | $ | 49,499 | ||||||||||
Net income (loss) attributable to the Company's stockholders | $ | 7,868 | $ | (454) | ||||||||||
(1) Includes $2,017 of a deferred revenue adjustment recognized during the three months ended September 30, 2020. |
Nine Months Ended September 30, | ||||||||||||||
2021 | 2020 | |||||||||||||
Revenues, net (1) | $ | 150,911 | $ | 113,206 | ||||||||||
Net income (loss) attributable to the Company's stockholders | $ | 18,275 | $ | (9,971) | ||||||||||
(1) Includes $6,822 of a deferred revenue adjustment recognized during the nine months ended September 30, 2020. The nine months ended September 30, 2020 includes seven months of revenue as the business was acquired in February of 2020. |
Issuance of 46.9 million shares(1) | $ | 1,094.9 | ||||||
Cash consideration(2) | 3,959.9 | |||||||
Total purchase price | 5,054.8 | |||||||
Cash acquired(3) | (52.5) | |||||||
Total purchase price, net of cash acquired | $ | 5,002.3 | ||||||
(1) Based on the Company’s closing share price of $23.34 on November 30, 2021. | ||||||||
(2) Total cash consideration of $3,959.9 includes a base cash consideration of $3,988.0, less working capital adjustments of $31.7, less closing indebtedness adjustments of $36.6, plus closing cash consideration of $40.2. | ||||||||
(3) Cash acquired includes $52.5 of total cash acquired, less $2.0 of restricted cash acquired. |
Original Purchase Price Allocation | Measurement Period Adjustments | Updated Purchase Price Allocation | |||||||||||||||
Accounts receivable | $ | 113.5 | $ | 1.2 | $ | 114.7 | |||||||||||
Prepaid expenses | 22.3 | 0.9 | 23.2 | ||||||||||||||
Other current assets | 23.7 | — | 23.7 | ||||||||||||||
Property and equipment, net | 62.3 | 2.9 | 65.2 | ||||||||||||||
Other intangible assets(1) | 3,534.7 | (1.0) | 3,533.7 | ||||||||||||||
Other non-current assets | 18.0 | — | 18.0 | ||||||||||||||
Deferred income taxes | 3.5 | — | 3.5 | ||||||||||||||
Operating lease right-of-use assets | 28.4 | — | 28.4 | ||||||||||||||
Total assets | $ | 3,806.4 | $ | 4.0 | $ | 3,810.4 | |||||||||||
Accounts payable | 17.1 | — | 17.1 | ||||||||||||||
Accrued expenses and other current liabilities | 136.8 | (3.6) | 133.2 | ||||||||||||||
Current portion of long-term debt | 1.1 | — | 1.1 | ||||||||||||||
Current portion of deferred revenue | 335.2 | — | 335.2 | ||||||||||||||
Current portion of operating lease liabilities | 8.0 | — | 8.0 | ||||||||||||||
Long-term debt | 33.4 | — | 33.4 | ||||||||||||||
Deferred income taxes | 58.6 | 0.3 | 58.9 | ||||||||||||||
Non-current portion of deferred revenue | 6.8 | — | 6.8 | ||||||||||||||
Other non-current liabilities | 89.2 | 2.1 | 91.3 | ||||||||||||||
Operating lease liabilities | 23.1 | — | 23.1 | ||||||||||||||
Total liabilities | 709.3 | (1.2) | 708.1 | ||||||||||||||
Fair value of acquired identifiable assets and liabilities | $ | 3,097.1 | $ | 5.2 | $ | 3,102.3 | |||||||||||
Purchase price, net of cash | $ | 4,994.3 | $ | 8.0 | $ | 5,002.3 | |||||||||||
Less: Fair value of acquired identifiable assets and liabilities | 3,097.1 | 5.2 | 3,102.3 | ||||||||||||||
Goodwill | $ | 1,897.2 | $ | 2.8 | $ | 1,900.0 | |||||||||||
(1) Of the $3,534.7, $3,528.0 relates to the valued intangible assets as per the purchase price allocation and $6.7 relates to acquired assets under construction. |
Fair Value as of February 28, 2020 | Remaining Range of Years | ||||||||||
Customer relationships | $ | 381,000 | 10-21 | ||||||||
Database and content | 50,200 | 2-7 | |||||||||
Trade names | 5,200 | 4-7 | |||||||||
Purchased software | 23,000 | 3-8 | |||||||||
Backlog | 28,000 | 4 | |||||||||
Total identifiable intangible assets | $ | 487,400 |
Fair Value as of December 1, 2021 | Remaining Range of Years | ||||||||||
Customer relationships | $ | 2,773.0 | 17-23 | ||||||||
Technology & databases | 709.3 | 5-17 | |||||||||
Trade names | 45.7 | 2-10 | |||||||||
Total identifiable intangible assets | $ | 3,528.0 |
Three Months Ended September 30, | |||||||||||
2021 | 2020 | ||||||||||
Pro forma revenues, net | $ | 442,117 | $ | 286,377 | |||||||
Pro forma net income (loss) attributable to the Company's stockholders(1) | $ | 28,424 | $ | (180,333) | |||||||
(1) The Pro forma net loss attributable to the Company's stockholders for the three months ended September 30, 2021 and 2020 has been restated. See Note 27 - Restatement of Previously Issued Financial Statements and Note 25 - Restatement of Prior Period Financial Statements for more information, respectively. |
Three Months Ended September 30, | |||||||||||
2021 | |||||||||||
Pro forma revenues, net | $ | 663.4 | |||||||||
Pro forma net income attributable to the Company's shareholders | 56.3 | ||||||||||
Nine Months Ended September 30, | |||||||||||
2021 | |||||||||||
Pro forma revenues, net | $ | 1,992.6 | |||||||||
Pro forma net loss attributable to the Company's shareholders | (159.5) |
Nine Months Ended September 30, | |||||||||||
2021 | 2020 | ||||||||||
Pro forma revenues, net | $ | 1,316,192 | $ | 828,489 | |||||||
Pro forma net loss attributable to the Company's stockholders(1) | $ | (159,094) | $ | (322,268) | |||||||
(1) The Pro forma net loss attributable to the Company's stockholders for the nine months ended September 30, 2020 has been restated. See Note 27 - Restatement of Previously Issued Financial Statements and Note 25 - Restatement of Prior Period Financial Statements for more information, respectively. |
Range of Years | |||||||||||
Fair Value as of October 26, 2020 | Remaining Amortization Period (in years) | ||||||||||
Customer relationships | $ | 19,989 | 11 | ||||||||
Existing technology | 1,892 | 6 | |||||||||
Trade names | 76 | 2 | |||||||||
Total identifiable intangible assets | $ | 21,957 |
Fair Value as of November 23, 2020 | Remaining Range of Years | ||||||||||
Customer relationships | $ | 7,832 | 11-13 | ||||||||
Trade name | 15 | 2 | |||||||||
Non-compete agreements | 958 | 5 | |||||||||
Total identifiable intangible assets | $ | 8,805 |
Fair Value as of August 3, 2021 | Remaining Range of Years | ||||||||||
Customer relationships | $ | 5,224 | 10 | ||||||||
Technology | 1,020 | 6 | |||||||||
Trade name | 36 | 2 | |||||||||
Total identifiable intangible assets | $ | 6,280 |
As of | |||||
2022 | |||||
Assets: | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 2.6 | |||
Accounts receivable, net | 12.5 | ||||
Prepaid expenses | 4.3 | ||||
Other current assets | 2.4 | ||||
Total current assets | 21.8 | ||||
Other intangible assets, net | 10.6 | ||||
Goodwill | 42.8 | ||||
Other non-current assets | 0.8 | ||||
Deferred income taxes | 2.3 | ||||
Total Assets held for sale | $ | 78.3 | |||
Liabilities: | |||||
Current liabilities: | |||||
Accounts payable | $ | 0.3 | |||
Accrued expenses and other current liabilities | 2.7 | ||||
Current portion of deferred revenues | 44.7 | ||||
Total current liabilities | 47.7 | ||||
Non-current portion of deferred revenues | 10.3 | ||||
Deferred income taxes | 0.3 | ||||
Total Liabilities held for sale | $ | 58.3 |
September 30, | December 31, | ||||||||||
2021 | 2020 | ||||||||||
Accounts receivable | $ | 619,397 | $ | 746,478 | |||||||
Less: Accounts receivable allowance | (8,642) | (8,745) | |||||||||
Accounts receivable, net | $ | 610,755 | $ | 737,733 | |||||||
September 30, | December 31, | ||||||||||||||||
2021 | 2020 | ||||||||||||||||
Balance at beginning of year | $ | 8,745 | $ | 16,511 | |||||||||||||
Additional provisions | 6,532 | 4,339 | |||||||||||||||
Write-offs | (6,405) | (22,205) | |||||||||||||||
Opening balance sheet adjustment related to ASU 2016 -13 adoption | — | 10,097 | |||||||||||||||
Exchange differences | (230) | 3 | |||||||||||||||
Balance at the end of year | $ | 8,642 | $ | 8,745 |
September 30, | December 31, | ||||||||||
2021 | 2020 | ||||||||||
Computer hardware | $ | 43,438 | $ | 38,253 | |||||||
Leasehold improvements | 12,013 | 21,614 | |||||||||
Furniture, fixtures and equipment | 16,240 | 13,201 | |||||||||
Total property and equipment, gross | 71,691 | 73,068 | |||||||||
Accumulated depreciation | (43,743) | (36,801) | |||||||||
Total property and equipment, net | $ | 27,948 | $ | 36,267 |
September 30, | December 31, | ||||||||||
2022 | 2021 | ||||||||||
Computer hardware | $ | 44.6 | $ | 45.5 | |||||||
Leasehold improvements | 15.6 | 11.6 | |||||||||
Furniture, fixtures and equipment | 38.8 | 34.7 | |||||||||
Capital office leases - finance lease asset | 7.2 | 30.5 | |||||||||
Other | 1.9 | 2.3 | |||||||||
Total property and equipment, gross | 108.1 | 124.6 | |||||||||
Accumulated depreciation | (51.2) | (40.8) | |||||||||
Total property and equipment, net | $ | 56.9 | $ | 83.8 | |||||||
September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||
Finite-lived intangible assets | |||||||||||||||||||||||||||||||||||
Customer relationships | $ | 7,481.8 | $ | (700.9) | $ | 6,780.9 | $ | 8,279.1 | $ | (514.8) | $ | 7,764.3 | |||||||||||||||||||||||
Databases and content | 2,636.0 | (724.5) | 1,911.5 | 2,577.1 | (591.0) | 1,986.1 | |||||||||||||||||||||||||||||
Computer software | 725.3 | (378.7) | 346.6 | 733.1 | (320.1) | 413.0 | |||||||||||||||||||||||||||||
Trade names | 59.9 | (17.3) | 42.6 | 62.1 | (10.5) | 51.6 | |||||||||||||||||||||||||||||
Backlog | 28.7 | (18.3) | 10.4 | 29.1 | (13.0) | 16.1 | |||||||||||||||||||||||||||||
Finite-lived intangible assets | 10,931.7 | (1,839.7) | 9,092.0 | 11,680.5 | (1,449.4) | 10,231.1 | |||||||||||||||||||||||||||||
Indefinite-lived intangible assets | |||||||||||||||||||||||||||||||||||
Trade names | 156.9 | — | 156.9 | 161.3 | — | 161.3 | |||||||||||||||||||||||||||||
Total intangible assets | $ | 11,088.6 | $ | (1,839.7) | $ | 9,248.9 | $ | 11,841.8 | $ | (1,449.4) | $ | 10,392.4 |
September 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||
Finite-lived intangible assets | |||||||||||||||||||||||||||||||||||
Customer relationships | $ | 5,501,710 | $ | (443,814) | $ | 5,057,896 | $ | 5,598,175 | $ | (261,350) | $ | 5,336,825 | |||||||||||||||||||||||
Databases and content | 1,853,364 | (555,447) | 1,297,917 | 1,848,041 | (464,683) | 1,383,358 | |||||||||||||||||||||||||||||
Computer software | 714,904 | (298,333) | 416,571 | 658,976 | (209,611) | 449,365 | |||||||||||||||||||||||||||||
Trade names | 14,742 | (5,190) | 9,552 | 18,606 | (2,360) | 16,246 | |||||||||||||||||||||||||||||
Backlog | 29,100 | (9,894) | 19,206 | 29,216 | (5,905) | 23,311 | |||||||||||||||||||||||||||||
Finite-lived intangible assets | 8,113,820 | (1,312,678) | 6,801,142 | 8,153,014 | (943,909) | 7,209,105 | |||||||||||||||||||||||||||||
Indefinite-lived intangible assets | |||||||||||||||||||||||||||||||||||
Trade names | 162,939 | — | 162,939 | 161,245 | — | 161,245 | |||||||||||||||||||||||||||||
Total intangible assets | $ | 8,276,759 | $ | (1,312,678) | $ | 6,964,081 | $ | 8,314,259 | $ | (943,909) | $ | 7,370,350 |
Science Segment | Intellectual Property Segment (As Restated) | Consolidated Total (As Restated) | |||||||||||||||
Balance as of December 31, 2019 | $ | 909,937 | $ | 418,108 | $ | 1,328,045 | |||||||||||
Acquisition | 499,199 | 4,002,695 | 4,501,894 | ||||||||||||||
Divestiture | — | (9,129) | (9,129) | ||||||||||||||
Impact of foreign currency fluctuations and other | 607 | 221,547 | 222,154 | ||||||||||||||
Balance as of December 31, 2020 | $ | 1,409,743 | $ | 4,633,221 | $ | 6,042,964 | |||||||||||
Acquisition(1) | 11,297 | 20,629 | 31,926 | ||||||||||||||
Impact of foreign currency fluctuations and other | 1,015 | (76,583) | (75,568) | ||||||||||||||
Balance as of September 30, 2021 | $ | 1,422,055 | $ | 4,577,267 | $ | 5,999,322 | |||||||||||
A&G Segment | LS&H Segment | IP Segment | Consolidated Total | ||||||||||||||||||||
Balance as of December 31, 2021(1) | $ | 2,862.6 | $ | 1,177.3 | $ | 3,865.0 | $ | 7,904.9 | |||||||||||||||
Acquisition measurement period adjustments | 2.9 | 3.1 | — | 6.0 | |||||||||||||||||||
Transferred to Assets held for sale(2) | — | — | (42.8) | (42.8) | |||||||||||||||||||
Goodwill impairment(3) | (1,745.8) | — | (2,662.1) | (4,407.9) | |||||||||||||||||||
Impact of foreign currency fluctuations(4) | (21.7) | (4.6) | (629.5) | (655.8) | |||||||||||||||||||
Balance as of September 30, 2022 | $ | 1,098.0 | $ | 1,175.8 | $ | 530.6 | $ | 2,804.4 | |||||||||||||||
(1) The prior year amounts have been revised for a reclassification of allocated goodwill between reporting units. Refer to Note 18 - Segment Information for additional information. | |||||||||||||||||||||||
(2) Relates to the MarkMonitor domain management business divestiture classified as held-for-sale as of September 30, 2022. Refer to Note 5 - Assets Held for Sale and Divested Operations for additional information. | |||||||||||||||||||||||
(3) Accumulated goodwill impairment as of September 30, 2022 and December 31, 2021 was $4,407.9 and $0.0, respectively. The total goodwill impairment charge reflected in the Condensed Consolidated Statements of Operations was $4,448.6 for the three and nine months ended September 30, 2022. The difference represents the CTA impact for amounts recorded in subsidiaries with functional currencies other than USD. | |||||||||||||||||||||||
(4) The impact of foreign currency fluctuations was primarily driven by changes in the GBP/USD translation rate as of September 30, 2022 compared to December 31, 2021. Approximately half of the Company's Goodwill and Other intangible assets are denominated in GBP. | |||||||||||||||||||||||
September 30, 2021 | |||||||||||||||||||||||
Level 1 | Level 2 (As Restated) | Level 3 | Total Fair Value (As Restated) | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Forward contracts asset | $ | — | $ | 15 | $ | — | $ | 15 | |||||||||||||||
— | 15 | — | 15 | ||||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Warrant liability | — | — | 195,952 | 195,952 | |||||||||||||||||||
Employee phantom share liability - current | — | 129,716 | — | 129,716 | |||||||||||||||||||
Employee phantom share liability - non-current | — | 5,705 | — | 5,705 | |||||||||||||||||||
Forward contracts liability | — | 4,626 | — | 4,626 | |||||||||||||||||||
Interest rate swap liability | — | 2,651 | — | 2,651 | |||||||||||||||||||
Total | $ | — | $ | 142,698 | $ | 195,952 | $ | 338,650 |
September 30, 2022 | |||||||||||||||||||||||
Level 2 | Level 3 | Total Fair Value | |||||||||||||||||||||
Assets | |||||||||||||||||||||||
Interest rate swap asset - current | $ | 2.5 | $ | — | $ | 2.5 | |||||||||||||||||
Interest rate swap asset - non-current | 50.4 | — | 50.4 | ||||||||||||||||||||
Total | $ | 52.9 | $ | — | $ | 52.9 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||
Warrant liability | $ | — | $ | 25.1 | $ | 25.1 | |||||||||||||||||
CPA Global Equity Plan liability - current | 7.9 | — | 7.9 | ||||||||||||||||||||
Forward currency contracts liability - current | 7.8 | — | 7.8 | ||||||||||||||||||||
Total | $ | 15.7 | $ | 25.1 | $ | 40.8 |
December 31, 2020 | |||||||||||||||||||||||
Level 1 | Level 2 (As Restated) | Level 3 | Total Fair Value (As Restated) | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Forward contracts asset | $ | — | $ | 8,574 | $ | — | $ | 8,574 | |||||||||||||||
— | 8,574 | — | 8,574 | ||||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Warrant liability | — | — | 312,751 | 312,751 | |||||||||||||||||||
Employee phantom share liability - current | — | 57,752 | — | 57,752 | |||||||||||||||||||
Employee phantom share liability - non-current | — | 393 | — | 393 | |||||||||||||||||||
Forward contracts liability | — | 106 | — | 106 | |||||||||||||||||||
Interest rate swap liability | — | 5,159 | — | 5,159 | |||||||||||||||||||
Contingent stock liability | — | 130,594 | — | 130,594 | |||||||||||||||||||
Total | $ | — | $ | 194,004 | $ | 312,751 | $ | 506,755 | |||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
Level 2 | Level 3 | Total Fair Value | |||||||||||||||||||||
Assets | |||||||||||||||||||||||
Forward currency contracts asset - current | $ | 2.2 | $ | — | $ | 2.2 | |||||||||||||||||
Interest rate swap asset - non-current | 2.0 | — | 2.0 | ||||||||||||||||||||
Total | $ | 4.2 | $ | — | $ | 4.2 | |||||||||||||||||
Liabilities | |||||||||||||||||||||||
Warrant liability | $ | — | $ | 227.8 | $ | 227.8 | |||||||||||||||||
CPA Global Equity Plan liability - current | 152.4 | — | 152.4 | ||||||||||||||||||||
Forward currency contracts liability - current | 0.7 | — | 0.7 | ||||||||||||||||||||
Total | $ | 153.1 | $ | 227.8 | $ | 380.9 | |||||||||||||||||
September 30, 2021 (As Restated) | December 31, 2020 (As Restated) | ||||||||||
Employee phantom share plan liability (1) | $ | 129,716 | $ | 57,752 | |||||||
Contingent stock liability (2) | — | 130,594 | |||||||||
Employee related accruals (3) | 81,177 | 98,481 | |||||||||
Accrued professional fees (4) | 50,403 | 67,628 | |||||||||
Accrued legal liability (5) | 79,346 | — | |||||||||
Tax related accruals (6) | 31,277 | 45,119 | |||||||||
Other accrued expenses and other current liabilities (7) | 187,774 | 170,108 | |||||||||
Total accrued expenses and other current liabilities | $ | 559,693 | $ | 569,682 |
Balance at December 31, 2021 | $ | 227.8 | |||||||||
Mark to market gain on financial instruments | (100.4) | ||||||||||
Exercise of Private Placement Warrants | — | ||||||||||
Balance at March 31, 2022 | $ | 127.4 | |||||||||
Mark to market gain on financial instruments | (49.0) | ||||||||||
Exercise of Private Placement Warrants | — | ||||||||||
Balance at June 30, 2022 | $ | 78.4 | |||||||||
Mark to market gain on financial instruments | (53.3) | ||||||||||
Exercise of Private Placement Warrants | — | ||||||||||
Balance at September 30, 2022 | $ | 25.1 | |||||||||
Balance at December 31, 2020 | $ | ||||||||||
312.8 | |||||||||||
Mark to market gain on financial instruments | (51.2) | ||||||||||
Exercise of Private Placement Warrants | (3.6) | ||||||||||
Balance at March 31, 2021 | $ | 258.0 | |||||||||
Mark to market loss on financial instruments | 21.0 | ||||||||||
Exercise of Private Placement Warrants | — | ||||||||||
Balance at June 30, 2021 | $ | 279.0 | |||||||||
Mark to market gain on financial instruments | (83.0) | ||||||||||
Exercise of Private Placement Warrants | — | ||||||||||
Balance at September 30, 2021 | $ | ||||||||||
Three Months Ended September 30, | |||||||||||||||||
2021 | 2020 | ||||||||||||||||
Service cost | $ | 368 | $ | 226 | |||||||||||||
Interest cost | 82 | 79 | |||||||||||||||
Expected return on plan assets | (52) | (40) | |||||||||||||||
Amortization of actuarial gains | (4) | (19) | |||||||||||||||
Net periodic benefit cost | $ | 394 | $ | 246 | |||||||||||||
Nine Months Ended September 30, | |||||||||||||||||
2021 | 2020 | ||||||||||||||||
Service cost | $ | 1,104 | $ | 661 | |||||||||||||
Interest cost | 246 | 235 | |||||||||||||||
Expected return on plan assets | (156) | (118) | |||||||||||||||
Amortization of actuarial gains | (12) | (57) | |||||||||||||||
Net periodic benefit cost | $ | 1,182 | $ | 721 |
September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||
Type | Maturity | Effective Interest Rate | Carrying Value | Effective Interest Rate | Carrying Value | |||||||||||||||||||||||||||
Senior Notes (2029) | 2029 | 4.875 | % | $ | 921,399 | — | % | $ | — | |||||||||||||||||||||||
Senior Secured Notes (2028) | 2028 | 3.875 | % | 921,177 | — | % | — | |||||||||||||||||||||||||
Senior Secured Notes (2026) | 2026 | 4.500 | % | 700,000 | 4.500 | % | 700,000 | |||||||||||||||||||||||||
Term Loan Facility (2026) | 2026 | 3.598 | % | 2,825,950 | 3.626 | % | 2,847,400 | |||||||||||||||||||||||||
Revolving Credit Facility | 2024 | — | % | — | — | % | — | |||||||||||||||||||||||||
Total debt outstanding | 5,368,526 | 3,547,400 | ||||||||||||||||||||||||||||||
Debt issuance costs | (50,528) | (51,309) | ||||||||||||||||||||||||||||||
Term Loan Facility, discount | (8,793) | (9,591) | ||||||||||||||||||||||||||||||
Short-term debt, including current portion of long-term debt | (1,865,627) | (28,600) | ||||||||||||||||||||||||||||||
Long-term debt, net of current portion and debt issuance costs | $ | 3,443,578 | $ | 3,457,900 |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||
Type | Maturity | Effective Interest Rate | Carrying Value | Effective Interest Rate | Carrying Value | |||||||||||||||||||||||||||
Senior Notes | 2029 | 4.875 | % | $ | 921.4 | 4.875 | % | $ | 921.4 | |||||||||||||||||||||||
Senior Secured Notes | 2028 | 3.875 | % | 921.2 | 3.875 | % | 921.2 | |||||||||||||||||||||||||
Revolving Credit Facility | 2027 | 5.965 | % | 175.0 | 3.359 | % | 175.0 | |||||||||||||||||||||||||
Term Loan Facility | 2026 | 6.115 | % | 2,797.4 | 3.860 | % | 2,818.8 | |||||||||||||||||||||||||
Senior Secured Notes | 2026 | 4.500 | % | 700.0 | 4.500 | % | 700.0 | |||||||||||||||||||||||||
Finance lease(1) | 2023 | 3.800 | % | 29.3 | 3.800 | % | 30.8 | |||||||||||||||||||||||||
Total debt outstanding | 5,544.3 | 5,567.2 | ||||||||||||||||||||||||||||||
Debt issuance costs | (40.5) | (47.1) | ||||||||||||||||||||||||||||||
Term Loan Facility (2026), Senior Notes (2029), Senior Secured Notes (2028), discounts | (29.3) | (33.2) | ||||||||||||||||||||||||||||||
Short-term debt, including current portion of Long-term debt | (57.4) | (30.6) | ||||||||||||||||||||||||||||||
Long-term debt, net of current portion and debt issuance costs | $ | 5,417.1 | $ | 5,456.3 | ||||||||||||||||||||||||||||
(1) See Note 6 - Leases for additional information. |
Three Months Ended September 30, | |||||||||||||||||
2021 | 2020 | ||||||||||||||||
Subscription revenues | $ | 246,467 | $ | 222,069 | |||||||||||||
Transactional revenues | 85,354 | 64,398 | |||||||||||||||
Re-occurring revenues | 110,368 | — | |||||||||||||||
Total revenues, gross | 442,189 | 286,467 | |||||||||||||||
Deferred revenues adjustment (1) | (72) | (2,107) | |||||||||||||||
Total revenues, net | $ | 442,117 | $ | 284,360 | |||||||||||||
(1) Reflects the deferred revenue adjustment as a result of purchase accounting. | |||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||
2021 | 2020 | ||||||||||||||||
Subscription revenues | $ | 725,121 | $ | 631,873 | |||||||||||||
Transactional revenues | 259,300 | 174,000 | |||||||||||||||
Re-occurring revenues | 336,236 | — | |||||||||||||||
Total revenues, gross | 1,320,657 | 805,873 | |||||||||||||||
Deferred revenues adjustment (1) | (4,465) | (7,421) | |||||||||||||||
Total revenues, net | $ | 1,316,192 | $ | 798,452 | |||||||||||||
(1) Reflects the deferred revenue adjustment as a result of purchase accounting. |
Accounts receivable, net | Current portion of deferred revenues | Non-current portion of deferred revenues | |||||||||||||||
Opening (1/1/2021) | $ | 737,733 | $ | 707,318 | $ | 41,399 | |||||||||||
Closing (09/30/2021) | 610,755 | 579,935 | 44,934 | ||||||||||||||
(Increase)/decrease | $ | 126,978 | $ | 127,383 | $ | (3,535) | |||||||||||
Opening (1/1/2020) | $ | 333,858 | $ | 407,325 | $ | 19,723 | |||||||||||
Closing (09/30/2020) | 238,638 | 326,098 | 24,080 | ||||||||||||||
(Increase)/decrease | $ | 95,220 | $ | 81,227 | $ | (4,357) | |||||||||||
Three Months Ended September 30, | |||||||||||||||||
2022 | 2021 | ||||||||||||||||
Subscription revenues | $ | 408.3 | $ | 246.5 | |||||||||||||
Re-occurring revenues | 102.7 | 110.4 | |||||||||||||||
Transactional and other revenues | 125.0 | 85.3 | |||||||||||||||
Total revenues, gross | 636.0 | 442.2 | |||||||||||||||
Deferred revenues adjustment(1) | (0.3) | (0.1) | |||||||||||||||
Total revenues, net | $ | 635.7 | $ | 442.1 | |||||||||||||
(1) Reflects the deferred revenues adjustment made as a result of purchase accounting prior to the adoption of ASU No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. In the fourth quarter of 2021, Clarivate adopted ASU No. 2021-08 which allows an acquirer to account for the related revenue contracts in accordance with ASC 606 Revenue from Contracts with Customers, as if it had originated the contracts. This guidance was applied retrospectively to all business combinations for which the acquisition date occurs during or subsequent to 2021. | |||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||
2022 | 2021(1) | ||||||||||||||||
Subscription revenues | $ | 1,220.7 | $ | 728.9 | |||||||||||||
Re-occurring revenues | 329.2 | 333.6 | |||||||||||||||
Transactional and other revenues | 435.5 | 258.2 | |||||||||||||||
Total revenues, gross | 1,985.4 | 1,320.7 | |||||||||||||||
Deferred revenues adjustment(2) | (0.9) | (4.5) | |||||||||||||||
Total revenues, net | $ | 1,984.5 | $ | 1,316.2 | |||||||||||||
(1) Certain prior period reported amounts have been reclassified to conform to current period presentation. | |||||||||||||||||
(2) Reflects the deferred revenues adjustment made as a result of purchase accounting prior to the adoption of ASU No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. In the fourth quarter of 2021, Clarivate adopted ASU No. 2021-08 which allows an acquirer to account for the related revenue contracts in accordance with ASC 606 Revenue from Contracts with Customers, as if it had originated the contracts. This guidance was applied retrospectively to all business combinations for which the acquisition date occurs during or subsequent to 2021. |
Accounts receivable, net | Current portion of deferred revenues | Non-current portion of deferred revenues | |||||||||||||||
Opening (January 1, 2022) | $ | 906.4 | $ | 1,030.4 | $ | 54.2 | |||||||||||
Closing (September 30, 2022) | 748.6 | 857.8 | 37.7 | ||||||||||||||
Decrease / (increase) | $ | 157.8 | $ | 172.6 | $ | 16.5 | |||||||||||
Opening (January 1, 2021) | $ | 737.7 | $ | 707.3 | $ | 41.4 | |||||||||||
Closing (September 30, 2021) | 610.8 | 579.9 | 44.9 | ||||||||||||||
Decrease / (increase) | $ | 126.9 | $ | 127.4 | $ | (3.5) | |||||||||||
(in millions) | Nine Months Ended September 30, 2022 | ||||||||||
Total number of shares repurchased | 10.7 | ||||||||||
Average price paid per share | $ | 16.33 | |||||||||
Total | $ | 175.0 | |||||||||
Total shares retired | 10.7 | ||||||||||
Average price paid per share | $ | 16.33 | |||||||||
Total | $ | 175.0 | |||||||||
Three Months Ended September 30, 2022 | |||||||||||||||||||||||||||||
Stock Options | RSUs | PSUs | CPA Global Equity Plan | Total | |||||||||||||||||||||||||
Cost of revenues | $ | — | $ | 4.5 | $ | — | $ | (0.3) | $ | 4.2 | |||||||||||||||||||
Selling, general and administrative costs | 0.3 | 13.7 | 1.1 | 0.2 | 15.3 | ||||||||||||||||||||||||
Total share-based compensation expense | $ | 0.3 | $ | 18.2 | $ | 1.1 | $ | (0.1) | $ | 19.5 | |||||||||||||||||||
Nine Months Ended September 30, 2022 | |||||||||||||||||||||||||||||
Stock Options | RSUs | PSUs | CPA Global Equity Plan | Total | |||||||||||||||||||||||||
Cost of revenues | $ | — | $ | 21.9 | $ | 0.2 | $ | 3.3 | $ | 25.4 | |||||||||||||||||||
Selling, general and administrative costs | 0.3 | 42.9 | 3.0 | 6.9 | 53.1 | ||||||||||||||||||||||||
Total share-based compensation expense | $ | 0.3 | $ | 64.8 | $ | 3.2 | $ | 10.2 | $ | 78.5 |
Three Months Ended September 30, 2021 | |||||||||||||||||||||||||||||
Stock Options | RSUs | PSUs | CPA Global Equity Plan | Total | |||||||||||||||||||||||||
Cost of revenues | $ | — | $ | 3.9 | $ | 0.1 | $ | (0.4) | $ | 3.6 | |||||||||||||||||||
Selling, general and administrative costs | — | 7.0 | 1.0 | (1.0) | 7.0 | ||||||||||||||||||||||||
Total share-based compensation expense | $ | — | $ | 10.9 | $ | 1.1 | $ | (1.4) | $ | 10.6 | |||||||||||||||||||
Nine Months Ended September 30, 2021 | |||||||||||||||||||||||||||||
Stock Options | RSUs | PSUs | CPA Global Equity Plan | Total | |||||||||||||||||||||||||
Cost of revenues | $ | 0.1 | $ | 12.1 | $ | 0.4 | $ | 21.9 | $ | 34.5 | |||||||||||||||||||
Selling, general and administrative costs | 0.4 | 22.1 | 3.4 | 47.4 | 73.3 | ||||||||||||||||||||||||
Total share-based compensation expense | $ | 0.5 | $ | 34.2 | $ | 3.8 | $ | 69.3 | $ | 107.8 |
Number of Options | Weighted Average Exercise Price per Share | Weighted-Average Remaining Contractual Life (in years) | Aggregate Intrinsic Value | ||||||||||||||||||||
Balance at December 31, 2020 | 7,860,618 | $ | 12.95 | 6.2 | $ | 131,956 | |||||||||||||||||
Granted | — | — | 0 | — | |||||||||||||||||||
Expired | — | — | 0 | — | |||||||||||||||||||
Forfeited | — | — | 0 | — | |||||||||||||||||||
Exercised | (2,745,966) | 12.12 | 0 | (39,737) | |||||||||||||||||||
Outstanding as of September 30, 2021 | 5,114,652 | $ | 13.40 | 5.6 | $ | 45,015 | |||||||||||||||||
Vested and exercisable at September 30, 2021 | 5,114,652 | $ | 13.40 | 5.6 | $ | 45,015 |
Nine Months Ended September 30, 2022 | |||||||||||||||||||||||||||||
Stock Options | RSUs | PSUs | |||||||||||||||||||||||||||
Balance at December 31, 2021 | 4.8 | 4.5 | 1.4 | ||||||||||||||||||||||||||
Granted | — | 9.9 | 1.2 | ||||||||||||||||||||||||||
Exercised/Vested | (0.3) | (2.5) | — | ||||||||||||||||||||||||||
Forfeited/Unexercised | (0.1) | (0.6) | (0.3) | ||||||||||||||||||||||||||
Balance at September 30, 2022 | 4.4 | 11.3 | 2.3 | ||||||||||||||||||||||||||
Total remaining unamortized compensation costs | $ | — | $ | 111.5 | $ | 7.9 | |||||||||||||||||||||||
Weighted average remaining service period | 0 years | 1.34 years | 1.66 years |
Number of Shares | Weighted Average Grant Date Fair Value per Share | ||||||||||
Outstanding as of December 31, 2020 | 1,810,546 | $ | 19.30 | ||||||||
Granted | 2,856,222 | 24.11 | |||||||||
Vested | (571,617) | $ | 21.03 | ||||||||
Forfeited | (438,225) | 23.45 | |||||||||
Outstanding as of September 30, 2021 | 3,656,926 | $ | 23.68 |
Number of Shares (1) | Weighted Average Grant Date Fair Value per Share | ||||||||||
Outstanding as of December 31, 2020 | 873,325 | $ | 25.84 | ||||||||
Granted | 565,896 | 23.70 | |||||||||
Vested | (5,633) | 32.50 | |||||||||
Forfeited | (128,642) | 24.43 | |||||||||
Outstanding as of September 30, 2021 | 1,304,946 | $ | 25.02 |
Number of Shares | Weighted Average Fair Value per Share | ||||||||||||||||
Outstanding at December 31, 2019 | 18,300,000 | $ | 6.11 | ||||||||||||||
Exercise of Private Placement Warrants | — | — | |||||||||||||||
Outstanding at September 30, 2020 | 18,300,000 | $ | 18.36 | ||||||||||||||
Outstanding at December 31, 2020 | 18,026,000 | $ | 17.35 | ||||||||||||||
Exercise of Private Placement Warrants | (212,174) | 16.93 | |||||||||||||||
Outstanding at September 30, 2021 | 17,813,826 | $ | 11.00 |
Nine Months Ended September 30, 2021 | |||||||||||||||||
Stock Options | RSUs | PSUs | |||||||||||||||
Balance at December 31, 2020 | 7.8 | 1.8 | 0.9 | ||||||||||||||
Granted | — | 2.9 | 0.5 | ||||||||||||||
Vested | (2.7) | (0.6) | — | ||||||||||||||
Forfeited | — | (0.4) | (0.1) | ||||||||||||||
Balance at September 30, 2021 | 5.1 | 3.7 | 1.3 | ||||||||||||||
Total remaining unamortized compensation costs | $ | — | $ | 50.5 | $ | 8.8 | |||||||||||
Weighted average remaining service period | 0 years | 1.20 years | 1.81 years |
Three Months Ended September 30, | |||||||||||||||||
2021 (As Restated) | 2020 (As Restated) | ||||||||||||||||
Basic/Diluted EPS | |||||||||||||||||
Net income (loss) available to ordinary stockholders | $ | 28,424 | $ | (181,986) | |||||||||||||
Dividends on preferred shares | (22,431) | — | |||||||||||||||
Net income (loss) attributable to ordinary shares | $ | 5,993 | $ | (181,986) | |||||||||||||
Basic weighted-average number of ordinary shares outstanding | 634,508,967 | 387,845,438 | |||||||||||||||
Basic EPS | $ | 0.01 | $ | (0.47) | |||||||||||||
Effects of Dilutive Securities | |||||||||||||||||
Options | 5,098,686 | — | |||||||||||||||
Diluted weighted-average number of ordinary shares outstanding | 639,607,653 | 387,845,438 | |||||||||||||||
Diluted EPS | $ | 0.01 | $ | (0.47) | |||||||||||||
Nine Months Ended September 30, | |||||||||||||||||
2021 (As Restated) | 2020 (As Restated) | ||||||||||||||||
Basic/Diluted EPS | |||||||||||||||||
Net loss | $ | (159,094) | $ | (336,900) | |||||||||||||
Dividends on preferred shares | (22,431) | — | |||||||||||||||
Net loss attributable to ordinary shares | $ | (181,525) | $ | (336,900) | |||||||||||||
Basic weighted-average number of ordinary shares outstanding | 616,135,071 | 369,019,802 | |||||||||||||||
Basic EPS | $ | (0.29) | $ | (0.91) | |||||||||||||
Diluted weighted-average number of ordinary shares outstanding | 616,135,071 | 369,019,802 | |||||||||||||||
Diluted EPS | $ | (0.29) | $ | (0.91) | |||||||||||||
Three Months Ended September 30, | |||||||||||||||||
2022 | 2021 | ||||||||||||||||
Basic EPS | |||||||||||||||||
Net income (loss) available to ordinary shareholders | $ | (4,415.5) | $ | 28.4 | |||||||||||||
Dividends on preferred shares | 18.9 | 22.4 | |||||||||||||||
Net income (loss) attributable to ordinary shares | $ | (4,434.4) | $ | 6.0 | |||||||||||||
Basic weighted-average number of ordinary shares outstanding | 673.6 | 634.5 | |||||||||||||||
Basic EPS | $ | (6.58) | $ | 0.01 | |||||||||||||
Diluted EPS | |||||||||||||||||
Net income (loss) attributable to ordinary shares | $ | (4,434.4) | $ | 6.0 | |||||||||||||
Change in fair value of private placement warrants | (49.0) | (83.0) | |||||||||||||||
Net income (loss) attributable to ordinary shares, diluted | $ | (4,483.4) | $ | (77.0) | |||||||||||||
Denominator: | |||||||||||||||||
Shares used in computing net income (loss) attributable to per share to ordinary shareholders, basic | 673.6 | 634.5 | |||||||||||||||
Weighted-average effect of potentially dilutive shares to purchase ordinary shares | 1.6 | 9.4 | |||||||||||||||
Diluted weighted-average number of ordinary shares outstanding | 675.2 | 643.9 | |||||||||||||||
Diluted EPS | $ | (6.64) | $ | (0.12) | |||||||||||||
Nine Months Ended September 30, | |||||||||||||||||
2022 | 2021 | ||||||||||||||||
Basic EPS | |||||||||||||||||
Net income (loss) available to ordinary shareholders | $ | (4,283.6) | $ | (159.1) | |||||||||||||
Dividends on preferred shares | 56.3 | 22.4 | |||||||||||||||
Net income (loss) attributable to ordinary shares | $ | (4,339.9) | $ | (181.5) | |||||||||||||
Basic weighted-average number of ordinary shares outstanding | 676.7 | 616.1 | |||||||||||||||
Basic EPS | $ | (6.41) | $ | (0.29) | |||||||||||||
Diluted EPS | |||||||||||||||||
Net income (loss) attributable to ordinary shares | $ | (4,339.9) | $ | (181.5) | |||||||||||||
Change in fair value of private placement warrants | (190.7) | (113.2) | |||||||||||||||
Net income (loss) attributable to ordinary shares, diluted | $ | (4,530.6) | $ | (294.7) | |||||||||||||
Denominator: | |||||||||||||||||
Shares used in computing net income (loss) attributable to per share to ordinary shareholders, basic | 676.7 | 616.1 | |||||||||||||||
Weighted-average effect of potentially dilutive shares to purchase ordinary shares | 3.9 | 10.1 | |||||||||||||||
Diluted weighted-average number of ordinary shares outstanding | 680.6 | 626.2 | |||||||||||||||
Diluted EPS | $ | (6.66) | $ | (0.47) |
Three Months Ended September 30, | |||||||||||||||||
2021 | 2020 | ||||||||||||||||
Net foreign exchange gain (loss) | $ | 427 | $ | (3,550) | |||||||||||||
Miscellaneous (expense) income, net | (4,838) | 3,412 | |||||||||||||||
Other operating (expense), net | $ | (4,411) | $ | (138) | |||||||||||||
Nine Months Ended September 30, | |||||||||||||||||
2021 | 2020 | ||||||||||||||||
Net foreign exchange (loss) gain | $ | (15,387) | $ | 10,373 | |||||||||||||
Miscellaneous (expense) income, net | (4,354) | 4,302 | |||||||||||||||
Other operating (expense) income, net | $ | (19,741) | $ | 14,675 |
Three Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Net foreign exchange (gain) loss | $ | (30.0) | $ | (0.4) | |||||||
Miscellaneous (income) expense, net | 3.4 | 4.8 | |||||||||
Other operating (income) expense, net | $ | (26.6) | $ | 4.4 | |||||||
Nine Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Net foreign exchange (gain) loss | $ | (73.9) | $ | 15.4 | |||||||
Miscellaneous expense (income), net | 9.0 | 4.3 | |||||||||
Other operating (income) expense, net | $ | (64.9) | $ | 19.7 | |||||||
Three Months Ended September 30, | |||||||||||||||||
2021 | 2020 | ||||||||||||||||
Science Segment | $ | 200,821 | $ | 188,701 | |||||||||||||
Intellectual Property Segment | 241,296 | 95,659 | |||||||||||||||
Total Revenues | $ | 442,117 | $ | 284,360 | |||||||||||||
Nine Months Ended September 30, | |||||||||||||||||
2021 | 2020 | ||||||||||||||||
Science Segment | $ | 594,380 | $ | 514,774 | |||||||||||||
Intellectual Property Segment | 721,812 | 283,678 | |||||||||||||||
Total Revenues | $ | 1,316,192 | $ | 798,452 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Academia and Government | $ | 307.1 | $ | 102.3 | $ | 951.6 | $ | 303.3 | |||||||||||||||
Life Sciences and Healthcare | 103.6 | 98.5 | 327.7 | 291.1 | |||||||||||||||||||
Intellectual Property | 225.0 | 241.3 | 705.2 | 721.8 | |||||||||||||||||||
Total Revenues, net | $ | 635.7 | $ | 442.1 | $ | 1,984.5 | $ | 1,316.2 |
Three Months Ended September 30, | ||||||||||||||||||||
2021 (As Restated) | 2020 (As Restated) | |||||||||||||||||||
Science Segment Adjusted EBITDA | $ | 113,771 | $ | 83,310 | ||||||||||||||||
Intellectual Property Segment Adjusted EBITDA | 76,225 | 24,897 | ||||||||||||||||||
Total Adjusted EBITDA | $ | 189,996 | $ | 108,207 | ||||||||||||||||
(Provision) benefit for income taxes | (3,770) | (4,325) | ||||||||||||||||||
Depreciation and amortization | (130,683) | (68,614) | ||||||||||||||||||
Interest, net | (65,194) | (20,244) | ||||||||||||||||||
Deferred revenues adjustment | (72) | (2,107) | ||||||||||||||||||
Transaction related costs | (16,491) | (34,938) | ||||||||||||||||||
Share-based compensation expense | (10,609) | (6,796) | ||||||||||||||||||
Restructuring and impairment | (7,066) | (3,192) | ||||||||||||||||||
Mark to market adjustment on financial instruments | 83,013 | (144,753) | ||||||||||||||||||
Other | (10,700) | (5,224) | ||||||||||||||||||
Net income (loss) | $ | 28,424 | $ | (181,986) | ||||||||||||||||
Dividends on preferred shares | (22,431) | — | ||||||||||||||||||
Net income (loss) attributable to ordinary shares | $ | 5,993 | $ | (181,986) | ||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||
2021 (As Restated) | 2020 (As Restated) | |||||||||||||||||||
Science Segment Adjusted EBITDA | $ | 305,119 | $ | 226,551 | ||||||||||||||||
Intellectual Property Segment Adjusted EBITDA | 238,696 | 59,997 | ||||||||||||||||||
Total Adjusted EBITDA | $ | 543,815 | $ | 286,548 | ||||||||||||||||
Provision for income taxes | (12,240) | (13,693) | ||||||||||||||||||
Depreciation and amortization | (392,513) | (176,200) | ||||||||||||||||||
Interest, net | (141,156) | (72,306) | ||||||||||||||||||
Deferred revenues adjustment | (4,465) | (7,421) | ||||||||||||||||||
Transaction related costs | (7,473) | (70,154) | ||||||||||||||||||
Share-based compensation expense | (107,767) | (31,121) | ||||||||||||||||||
Restructuring and impairment | (125,685) | (26,792) | ||||||||||||||||||
Mark to market adjustment on financial instruments | 113,207 | (224,175) | ||||||||||||||||||
Other | (24,817) | (1,586) | ||||||||||||||||||
Net loss | $ | (159,094) | $ | (336,900) | ||||||||||||||||
Dividends on preferred shares | (22,431) | — | ||||||||||||||||||
Net loss attributable to ordinary shares | $ | (181,525) | $ | (336,900) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||
Academia and Government | $ | 124.1 | $ | 59.7 | $ | 351.5 | $ | 169.0 | ||||||||||||||||||||||||
Life Sciences and Healthcare | 41.5 | 32.2 | 125.4 | 92.3 | ||||||||||||||||||||||||||||
Intellectual Property | 106.0 | 98.1 | 331.4 | 282.5 | ||||||||||||||||||||||||||||
Total Adjusted EBITDA | $ | 271.6 | $ | 190.0 | $ | 808.3 | $ | 543.8 | ||||||||||||||||||||||||
Provision for income taxes | (22.1) | (3.7) | (48.9) | (12.2) | ||||||||||||||||||||||||||||
Depreciation and amortization | (169.7) | (130.7) | (521.7) | (392.6) | ||||||||||||||||||||||||||||
Interest expense and amortization of debt discount, net | (71.5) | (65.3) | (193.3) | (141.2) | ||||||||||||||||||||||||||||
Mark to market gain (loss) on financial instruments(1) | 53.3 | 83.0 | 202.7 | 113.2 | ||||||||||||||||||||||||||||
Deferred revenues adjustment(2) | (0.3) | (0.1) | (0.9) | (4.5) | ||||||||||||||||||||||||||||
Transaction related costs(3) | 3.7 | (16.4) | (8.1) | (7.4) | ||||||||||||||||||||||||||||
Share-based compensation expense | (20.8) | (10.6) | (79.9) | (107.7) | ||||||||||||||||||||||||||||
Restructuring and impairment(4) | (26.0) | (7.1) | (56.9) | (125.7) | ||||||||||||||||||||||||||||
Goodwill impairment | (4,448.6) | — | (4,448.6) | — | ||||||||||||||||||||||||||||
Other(5) | 14.9 | (10.7) | 63.7 | (24.8) | ||||||||||||||||||||||||||||
Net (loss) income | $ | (4,415.5) | $ | 28.4 | $ | (4,283.6) | $ | (159.1) | ||||||||||||||||||||||||
Dividends on preferred shares | (18.9) | (22.4) | (56.3) | (22.4) | ||||||||||||||||||||||||||||
Net (loss) income attributable to ordinary shares | $ | (4,434.4) | $ | 6.0 | $ | (4,339.9) | $ | (181.5) | ||||||||||||||||||||||||
(1) Reflects mark-to-market adjustments on financial instruments under ASC 815, Derivatives and Hedging. Warrant instruments that do not meet the criteria to be considered indexed to an entity's own stock shall be initially classified as a liability at their estimated fair values, regardless of the likelihood that such instruments will ever be settled in cash. In periods subsequent to issuance, changes in the estimated fair value of the liabilities are reported through earnings. | ||||||||||||||||||||||||||||||||
(2) Reflects the deferred revenues adjustment made as a result of purchase accounting prior to the adoption of ASU No. 2021-08, "Accounting for Contract Assets and Contract Liabilities from Contracts with Customers". This guidance was applied retrospectively to all business combinations for which the acquisition date occurs during or subsequent to 2021. | ||||||||||||||||||||||||||||||||
(3) Includes costs incurred to complete business combination transactions, including acquisitions, dispositions and capital market activities and include advisory, legal, and other professional and consulting costs. The nine months ended September 30, 2021 period also includes the mark-to-market adjustment gains on the contingent stock consideration associated with the CPA Global and DRG acquisitions. | ||||||||||||||||||||||||||||||||
(4) Primarily reflects costs related to restructuring and impairment associated with One Clarivate, ProQuest and CPA Global Programs. Refer to Note 21 - Restructuring and Impairment for further information. | ||||||||||||||||||||||||||||||||
(5) Includes primarily the net impact of foreign exchange gains and losses related to the re-measurement of balances and other items that do not reflect our ongoing operating performance. |
Restructuring Programs | Severance and Related Benefit Costs (As Restated) | Costs Associated with Exit and Disposal Costs (1) | Total (As Restated) | |||||||||||||||||
Reserve Balance as of December 31, 2019 | $ | 9,506 | $ | — | $ | 9,506 | ||||||||||||||
Expenses recorded | 6,574 | 1,180 | 7,754 | |||||||||||||||||
Payments made | (6,647) | — | (6,647) | |||||||||||||||||
Reserve Balance as of March 31, 2020 | 9,433 | 1,180 | 10,613 | |||||||||||||||||
Expenses recorded | 8,177 | 7,669 | 15,846 | |||||||||||||||||
Payments made | (5,549) | (199) | (5,748) | |||||||||||||||||
Asset Impairment Charge | — | (4,908) | (4,908) | |||||||||||||||||
Reserve Balance as of June 30, 2020 | $ | 12,061 | $ | 3,742 | $ | 15,803 | ||||||||||||||
Expenses recorded | 1,682 | 1,510 | 3,192 | |||||||||||||||||
Payments made | (3,952) | (2,592) | (6,544) | |||||||||||||||||
Asset Impairment Charge | — | — | — | |||||||||||||||||
Reserve Balance as of September 30, 2020 | $ | 9,791 | $ | 2,660 | $ | 12,451 | ||||||||||||||
Reserve Balance as of December 31, 2020 | $ | 25,712 | $ | 4,475 | $ | 30,187 | ||||||||||||||
Expenses recorded(2) | 22,236 | 45,659 | 67,895 | |||||||||||||||||
Payments made | (15,926) | (1,111) | (17,037) | |||||||||||||||||
Asset Impairment Charge | (1,409) | (40,806) | (42,215) | |||||||||||||||||
Reserve Balance as of March 31, 2021 | $ | 30,613 | $ | 8,217 | $ | 38,830 | ||||||||||||||
Expenses recorded(2) | 26,257 | 24,467 | 50,724 | |||||||||||||||||
Payments made | (10,686) | (2,196) | (12,882) | |||||||||||||||||
Asset Impairment Charge | — | (20,584) | (20,584) | |||||||||||||||||
Reserve Balance as of June 30, 2021 | $ | 46,184 | $ | 9,904 | $ | 56,088 | ||||||||||||||
Expenses recorded(2) | 2,692 | 4,373 | 7,066 | |||||||||||||||||
Payments made(3) | (13,749) | (1,973) | (15,722) | |||||||||||||||||
Asset Impairment Charge | — | (812) | (812) | |||||||||||||||||
Reserve Balance as of September 30, 2021 | $ | 35,127 | $ | 11,493 | $ | 46,620 | ||||||||||||||
(1) Relates primary to lease exit costs and legal and advisory fees. | ||||||||||||||||||||
(2) Expenses include the acceleration of phantom equity awards under the CPA Global Equity Plan that were held by employees whose employment was involuntarily terminated. These expenses will be paid in cash and are accounted for as a liability award. See Note 2 - Basis of Presentation for more information | ||||||||||||||||||||
(3) Severance and related benefit cost payments includes $(3,394) of non-cash adjustments, primarily related to the acceleration of stock based compensation awards. |
Restructuring Programs | Severance and Related Benefit Costs | Costs Associated with Exit and Disposal Costs(1) | Total | |||||||||||||||||
Reserve Balance as of December 31, 2021 | $ | 28.3 | $ | 0.7 | $ | 29.0 | ||||||||||||||
Expenses recorded(2) | 10.3 | 1.4 | 11.7 | |||||||||||||||||
Payments made | (23.7) | (0.5) | (24.2) | |||||||||||||||||
Noncash items | (0.1) | 0.5 | 0.4 | |||||||||||||||||
Reserve Balance as of March 31, 2022 | $ | 14.8 | $ | 2.1 | $ | 16.9 | ||||||||||||||
Expenses recorded(2) | 12.1 | 7.1 | 19.2 | |||||||||||||||||
Payments made | (10.9) | (2.2) | (13.1) | |||||||||||||||||
Noncash items | (2.5) | (5.9) | (8.4) | |||||||||||||||||
Reserve Balance as of June 30, 2022 | $ | 13.5 | $ | 1.1 | $ | 14.6 | ||||||||||||||
Expenses recorded | 9.3 | 16.7 | 26.0 | |||||||||||||||||
Payments made | (9.0) | (0.3) | (9.3) | |||||||||||||||||
Noncash items | (1.1) | (17.2) | (18.3) | |||||||||||||||||
Reserve Balance as of September 30, 2022 | $ | 12.7 | $ | 0.3 | $ | 13.0 | ||||||||||||||
Reserve Balance as of December 31, 2020 | $ | 25.7 | $ | 3.8 | $ | 29.5 | ||||||||||||||
Expenses recorded(2) | 22.2 | 45.7 | 67.9 | |||||||||||||||||
Payments made | (15.9) | (4.2) | (20.1) | |||||||||||||||||
Noncash items | (1.4) | (40.9) | (42.3) | |||||||||||||||||
Reserve Balance as of March 31, 2021 | $ | 30.6 | $ | 4.4 | $ | 35.0 | ||||||||||||||
Expenses recorded(2) | 26.2 | 24.5 | 50.7 | |||||||||||||||||
Payments made | (10.6) | (22.8) | (33.4) | |||||||||||||||||
Asset Impairment Charge | — | (2.7) | (2.7) | |||||||||||||||||
Reserve Balance as of June 30, 2021 | $ | 46.2 | $ | 3.4 | $ | 49.6 | ||||||||||||||
Expenses recorded | 2.7 | 4.4 | 7.1 | |||||||||||||||||
Payments made | (13.7) | (2.0) | (15.7) | |||||||||||||||||
Asset Impairment Charge | — | (0.8) | (0.8) | |||||||||||||||||
Reserve Balance as of September 30, 2021 | $ | 35.2 | $ | 5.0 | $ | 40.2 | ||||||||||||||
(1) Relates primarily to lease exit costs and legal and advisory fees. Certain prior period amounts were revised for both the three months ended March 31, 2021 and June 30, 2021 to properly reflect certain cash payments previously omitted or classified as Noncash items. | ||||||||||||||||||||
(2) Expenses include the acceleration of phantom equity awards under the CPA Global Equity Plan that were held by employees whose employment was involuntarily terminated. These expenses will be paid in cash and are accounted for as a liability award. | ||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||
2021 (As Restated) | 2020 | ||||||||||||||||
Severance and related benefit costs(1) | $ | 2,692 | $ | 1,682 | |||||||||||||
Costs associated with exit and disposal activities (2) | 3,369 | 655 | |||||||||||||||
Costs associated with lease exit costs including impairment (3) | 1,005 | 855 | |||||||||||||||
Total restructuring and impairment | $ | 7,066 | $ | 3,192 | |||||||||||||
Nine Months Ended September 30, | |||||||||||||||||
2021 (As Restated) | 2020 | ||||||||||||||||
Severance and related benefit costs(1) | $ | 51,185 | $ | 16,433 | |||||||||||||
Costs associated with exit and disposal activities (2) | 5,602 | 4,596 | |||||||||||||||
Costs associated with lease exit costs including impairment (3) | 68,898 | 5,763 | |||||||||||||||
Total restructuring and impairment | $ | 125,685 | $ | 26,792 | |||||||||||||
(1) Expenses include the acceleration of phantom equity awards under the CPA Global Equity Plan that were held by employees whose employment was involuntarily terminated. These expenses will be paid in cash and are accounted for as a liability award. See Note 2 - Basis of Presentation for more information | |||||||||||||||||
(2) Relates primarily to contract exit costs, legal and advisory fees. | |||||||||||||||||
(3) Relates primary to lease exit costs. | |||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||
2022 | 2021 | ||||||||||||||||
Severance and related benefit costs | $ | 9.3 | $ | 2.7 | |||||||||||||
Costs associated with exit and disposal activities(1) | 0.1 | 3.4 | |||||||||||||||
Costs associated with lease exit costs including impairment(2) | 16.6 | 1.0 | |||||||||||||||
Total restructuring and impairment | $ | 26.0 | $ | 7.1 | |||||||||||||
Nine Months Ended September 30, | |||||||||||||||||
2022 | 2021 | ||||||||||||||||
Severance and related benefit costs | $ | 31.8 | $ | 51.2 | |||||||||||||
Costs associated with exit and disposal activities(1) | 2.1 | 5.6 | |||||||||||||||
Costs associated with lease exit costs including impairment(2) | 23.0 | 68.9 | |||||||||||||||
Total restructuring and impairment | $ | 56.9 | $ | 125.7 | |||||||||||||
(1) Relates primarily to contract exit costs, legal and advisory fees. | |||||||||||||||||
(2) Relates primarily to lease exit costs. | |||||||||||||||||
Interim Condensed Consolidated Statements of Operations (Unaudited) | |||||||||||||||||||||||||||||
Three months ended September 30, 2020 | |||||||||||||||||||||||||||||
As Originally Reported | Reclassification (a) | Restatement Impacts | Restatement Reference | As Reclassified and Restated | |||||||||||||||||||||||||
Revenues, net | $ | 284,360 | $ | — | $ | — | $ | 284,360 | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Cost of revenues | (91,805) | (1,749) | — | (93,554) | |||||||||||||||||||||||||
Selling, general and administrative costs | (91,319) | (40,207) | — | (131,526) | |||||||||||||||||||||||||
Share-based compensation expense | (6,796) | 6,796 | — | — | |||||||||||||||||||||||||
Depreciation | (2,918) | — | — | (2,918) | |||||||||||||||||||||||||
Amortization | (65,696) | — | — | (65,696) | |||||||||||||||||||||||||
Transaction expenses | (34,938) | 34,938 | — | — | |||||||||||||||||||||||||
Transition, integration and other related expenses | (222) | 222 | — | — | |||||||||||||||||||||||||
Restructuring and impairment | (3,192) | — | — | (3,192) | |||||||||||||||||||||||||
Other operating income, net | (138) | — | — | (138) | |||||||||||||||||||||||||
Total operating expenses | (297,024) | — | — | (297,024) | |||||||||||||||||||||||||
Loss from operations | (12,664) | — | — | (12,664) | |||||||||||||||||||||||||
Mark to market on financial instruments | — | — | (144,753) | (b) | (144,753) | ||||||||||||||||||||||||
Loss before interest expense and income tax | (12,664) | — | (144,753) | (157,417) | |||||||||||||||||||||||||
Interest expense and amortization of debt discount, net | (20,244) | — | — | (20,244) | |||||||||||||||||||||||||
Loss before income tax | (32,908) | — | (144,753) | (b) | (177,661) | ||||||||||||||||||||||||
Provision for income taxes | (4,325) | — | — | (4,325) | |||||||||||||||||||||||||
Net loss | $ | (37,233) | $ | — | $ | (144,753) | (b) | $ | (181,986) | ||||||||||||||||||||
Per share: | |||||||||||||||||||||||||||||
Basic and diluted | $ | (0.10) | $ | (0.37) | $ | (0.47) | |||||||||||||||||||||||
Weighted average shares used to compute earnings per share: | |||||||||||||||||||||||||||||
Basic and diluted | 387,845,438 | 387,845,438 | 387,845,438 | ||||||||||||||||||||||||||
Interim Condensed Consolidated Statements of Operations (Unaudited) | |||||||||||||||||||||||||||||
Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||
As Originally Reported | Reclassification (a) | Restatement Impacts | Restatement Reference | As Reclassified and Restated | |||||||||||||||||||||||||
Revenues, net | $ | 798,452 | $ | — | $ | — | $ | 798,452 | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Cost of revenues | (265,063) | (3,551) | — | (268,614) | |||||||||||||||||||||||||
Selling, general and administrative costs | (266,749) | (101,498) | — | (368,247) | |||||||||||||||||||||||||
Share-based compensation expense | (31,121) | 31,121 | — | — | |||||||||||||||||||||||||
Depreciation | (8,151) | — | — | (8,151) | |||||||||||||||||||||||||
Amortization | (168,049) | — | — | (168,049) | |||||||||||||||||||||||||
Transaction expenses | (70,154) | 70,154 | — | — | |||||||||||||||||||||||||
Transition, integration and other related expenses | (3,774) | 3,774 | — | — | |||||||||||||||||||||||||
Restructuring and impairment | (26,792) | — | — | (26,792) | |||||||||||||||||||||||||
Other operating income, net | 14,675 | — | — | 14,675 | |||||||||||||||||||||||||
Total operating expenses | (825,178) | — | — | (825,178) | |||||||||||||||||||||||||
Loss from operations | (26,726) | — | — | (26,726) | |||||||||||||||||||||||||
Mark to market on financial instruments | — | — | (224,175) | (b) | (224,175) | ||||||||||||||||||||||||
Loss before interest expense and income tax | (26,726) | — | (224,175) | (250,901) | |||||||||||||||||||||||||
Interest expense and amortization of debt discount, net | (72,306) | — | — | (72,306) | |||||||||||||||||||||||||
Loss before income tax | (99,032) | — | (224,175) | (b) | (323,207) | ||||||||||||||||||||||||
Provision for income taxes | (13,693) | — | — | (13,693) | |||||||||||||||||||||||||
Net loss | $ | (112,725) | $ | — | $ | (224,175) | (b) | $ | (336,900) | ||||||||||||||||||||
Per share: | |||||||||||||||||||||||||||||
Basic and diluted | $ | (0.31) | $ | (0.61) | $ | (0.91) | |||||||||||||||||||||||
Weighted average shares used to compute earnings per share: | |||||||||||||||||||||||||||||
Basic and diluted | 369,019,802 | 369,019,802 | 369,019,802 |
Three months ended September 30, 2020 | |||||||||||||||||
As Originally Reported | Restatement Impacts | As Restated | |||||||||||||||
Net loss | $ | (37,233) | (144,753) | $ | (181,986) | ||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Interest rate swaps | 1,092 | — | 1,092 | ||||||||||||||
Defined benefit pension plans, net of tax | (15) | — | (15) | ||||||||||||||
Foreign currency translation adjustment | 9,359 | — | 9,359 | ||||||||||||||
Total other comprehensive loss, net of tax | 10,436 | — | 10,436 | ||||||||||||||
Comprehensive loss | $ | (26,797) | $ | (144,753) | $ | (171,550) | |||||||||||
Nine Months Ended September 30, 2020 | |||||||||||||||||
As Originally Reported | Restatement Impacts | As Restated | |||||||||||||||
Net loss | $ | (112,725) | $ | (224,175) | $ | (336,900) | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Interest rate swaps | (2,052) | — | (2,052) | ||||||||||||||
Defined benefit pension plans, net of tax | (57) | — | (57) | ||||||||||||||
Foreign currency translation adjustment | 1,795 | — | 1,795 | ||||||||||||||
Total other comprehensive loss, net of tax | (314) | — | (314) | ||||||||||||||
Comprehensive loss | $ | (113,039) | $ | (224,175) | $ | (337,214) |
Interim Condensed Consolidated Statement of Changes in Equity (Unaudited) | ||||||||||||||||||||||||||||||||
Share Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Shareholders’ Equity | |||||||||||||||||||||||||||||
Restatement Reference | Shares | Amount | ||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 306,874,115 | $ | 2,144,372 | $ | (4,879) | $ | (890,894) | $ | 1,248,599 | |||||||||||||||||||||||
Adjustment to opening Accumulated deficit related to adoption of ASC Topic 326 | — | — | — | (9,319) | (9,319) | |||||||||||||||||||||||||||
Exercise of public warrants (As Restated) | 28,880,098 | 277,526 | — | — | 277,526 | |||||||||||||||||||||||||||
Exercise of stock options | 3,715,455 | 1,182 | — | — | 1,182 | |||||||||||||||||||||||||||
Vesting of restricted stock units | 169,842 | — | — | — | — | |||||||||||||||||||||||||||
Shares returned to the Company for net share settlements | (2,301,458) | (10,302) | — | — | (10,302) | |||||||||||||||||||||||||||
Issuance of ordinary shares, net | 27,600,000 | 539,714 | — | — | 539,714 | |||||||||||||||||||||||||||
Share-based award activity | — | 16,384 | — | — | 16,384 | |||||||||||||||||||||||||||
Net loss (As Restated) | (c) | — | — | — | (129,633) | (129,633) | ||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | (8,470) | — | (8,470) | |||||||||||||||||||||||||||
Balance at March 31, 2020 (As Restated) | (c) | 364,938,052 | 2,968,876 | (13,349) | (1,029,846) | 1,925,681 | ||||||||||||||||||||||||||
Exercise of stock options | 3,723,332 | — | — | — | — | |||||||||||||||||||||||||||
Vesting of restricted stock units | 2,528 | — | — | — | — | |||||||||||||||||||||||||||
Shares returned to the Company for net share settlements | (2,311,293) | (15,118) | — | — | (15,118) | |||||||||||||||||||||||||||
Issuance of ordinary shares, net | 20,982,500 | 304,030 | — | — | 304,030 | |||||||||||||||||||||||||||
Share-based award activity | — | 4,322 | — | — | 4,322 | |||||||||||||||||||||||||||
Net loss (As Restated) | (c) | — | — | — | (25,281) | (25,281) | ||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | (2,280) | — | (2,280) | |||||||||||||||||||||||||||
Balance at June 30, 2020 (As Restated) | (c) | 387,335,119 | 3,262,110 | (15,629) | (1,055,127) | 2,191,354 | ||||||||||||||||||||||||||
Exercise of stock options | 4,068,307 | 125 | — | — | 125 | |||||||||||||||||||||||||||
Vesting of restricted stock units | 2,459 | — | — | — | — | |||||||||||||||||||||||||||
Shares returned to the Company for net share settlements | (2,184,918) | (3,136) | — | — | (3,136) | |||||||||||||||||||||||||||
Share-based award activity | — | 5,520 | — | — | 5,520 | |||||||||||||||||||||||||||
Net loss (As Restated) | (c) | — | — | — | (181,986) | (181,986) | ||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | 10,436 | — | 10,436 | |||||||||||||||||||||||||||
Balance at September 30, 2020 (As Restated) | (c) | 389,220,967 | $ | 3,264,619 | $ | (5,193) | $ | (1,237,113) | $ | 2,022,313 |
Nine months ended September 30, 2020 | |||||||||||||||||
As Originally Reported | Restatement Impacts | As Restated | |||||||||||||||
Cash Flows From Operating Activities | |||||||||||||||||
Net loss | $ | (112,725) | $ | (224,175) | $ | (336,900) | |||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 176,200 | — | 176,200 | ||||||||||||||
Bad debt expense | 1,830 | — | 1,830 | ||||||||||||||
Gain on sale of line of business | (1,052) | (1,052) | |||||||||||||||
Restructuring and impairment | 4,880 | — | 4,880 | ||||||||||||||
Gain on foreign currency forward contracts | (2,903) | — | (2,903) | ||||||||||||||
Deferred income tax benefit | (7,420) | — | (7,420) | ||||||||||||||
Share-based compensation | 26,344 | — | 26,344 | ||||||||||||||
Mark to market adjustment on contingent and phantom shares (1) | 30,839 | — | 30,839 | ||||||||||||||
Mark to market adjustment on financial instruments (As Restated) | — | 224,175 | 224,175 | ||||||||||||||
Deferred finance charges | 3,140 | — | 3,140 | ||||||||||||||
Other operating activities | (3,902) | — | (3,902) | ||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Accounts receivable | 129,398 | — | 129,398 | ||||||||||||||
Prepaid expenses | (13,335) | — | (13,335) | ||||||||||||||
Other assets | 62,818 | — | 62,818 | ||||||||||||||
Accounts payable | (8,394) | — | (8,394) | ||||||||||||||
Accrued expenses and other current liabilities | (65,062) | — | (65,062) | ||||||||||||||
Deferred revenues | (93,926) | — | (93,926) | ||||||||||||||
Operating lease right of use assets | 5,826 | — | 5,826 | ||||||||||||||
Operating lease liabilities | (6,611) | — | (6,611) | ||||||||||||||
Other liabilities | 2,077 | — | 2,077 | ||||||||||||||
Net cash provided by operating activities | 128,022 | — | 128,022 | ||||||||||||||
Cash Flows From Investing Activities | |||||||||||||||||
Capital expenditures | (78,597) | — | (78,597) | ||||||||||||||
Acquisitions, net of cash acquired | (885,323) | — | (885,323) | ||||||||||||||
Acquisition of intangible assets | (5,982) | — | (5,982) | ||||||||||||||
Proceeds from sale of product line, net of restricted cash | 3,751 | — | 3,751 | ||||||||||||||
Net cash used in investing activities | (966,151) | — | (966,151) | ||||||||||||||
Cash Flows From Financing Activities | |||||||||||||||||
Principal payments on term loan | (9,450) | — | (9,450) | ||||||||||||||
Repayments of revolving credit facility | (65,000) | — | (65,000) | ||||||||||||||
Payment of debt issuance costs | (5,267) | — | (5,267) | ||||||||||||||
Contingent purchase price payment | (4,115) | — | (4,115) | ||||||||||||||
Proceeds from issuance of debt | 360,000 | — | 360,000 | ||||||||||||||
Proceeds from issuance of ordinary shares | 843,752 | — | 843,752 |
Proceeds from warrant exercises | 277,526 | — | 277,526 | ||||||||||||||
Proceeds from stock options exercised | 1,307 | — | 1,307 | ||||||||||||||
Payments related to tax withholding for stock-based compensation | (28,674) | — | (28,674) | ||||||||||||||
Net cash provided by (used in) financing activities | 1,370,079 | — | 1,370,079 | ||||||||||||||
Effects of exchange rates | (6,447) | — | (6,447) | ||||||||||||||
Net increase in cash and cash equivalents, and restricted cash | 525,503 | — | 525,503 | ||||||||||||||
Beginning of period: | |||||||||||||||||
Cash and cash equivalents | 76,130 | — | 76,130 | ||||||||||||||
Restricted cash | 9 | — | 9 | ||||||||||||||
Total cash and cash equivalents, and restricted cash, beginning of period | 76,139 | — | 76,139 | ||||||||||||||
Cash and cash equivalents, and restricted cash, end of period | 601,642 | — | 601,642 | ||||||||||||||
End of period: | |||||||||||||||||
Cash and cash equivalents | 601,075 | — | 601,075 | ||||||||||||||
Restricted cash | 567 | — | 567 | ||||||||||||||
Total cash and cash equivalents, and restricted cash, end of period | $ | 601,642 | $ | — | $ | 601,642 | |||||||||||
Supplemental Cash Flow Information | |||||||||||||||||
Cash paid for interest | $ | 61,796 | $ | — | $ | 61,796 | |||||||||||
Cash paid for income tax | $ | 20,147 | $ | — | $ | 20,147 | |||||||||||
Capital expenditures included in accounts payable | $ | 922 | $ | — | $ | 922 |
Consolidated Balance Sheets | |||||||||||||||||
As of September 30, | |||||||||||||||||
2021 | |||||||||||||||||
As Originally Reported | Restatement Impacts | As Restated | |||||||||||||||
Assets | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 2,479,880 | $ | — | $ | 2,479,880 | |||||||||||
Restricted cash(1) | 1,854,257 | 3,400 | 1,857,657 | ||||||||||||||
Accounts receivable, net of allowance of $8,642 and $8,745 at September 30, 2021 and December 31, 2020, respectively | 610,755 | — | 610,755 | ||||||||||||||
Prepaid expenses | 58,056 | — | 58,056 | ||||||||||||||
Other current assets(2) | 186,298 | (144,106) | 42,192 | ||||||||||||||
Total current assets | 5,189,246 | (140,706) | 5,048,540 | ||||||||||||||
Property and equipment, net | 27,948 | — | 27,948 | ||||||||||||||
Other intangible assets, net | 6,964,081 | — | 6,964,081 | ||||||||||||||
Goodwill(3) | 6,198,701 | (199,379) | 5,999,322 | ||||||||||||||
Other non-current assets(2) | 41,808 | (12,810) | 28,998 | ||||||||||||||
Deferred income taxes | 30,110 | (1,641) | 28,469 | ||||||||||||||
Operating lease right-of-use assets | 45,880 | — | 45,880 | ||||||||||||||
Total Assets | $ | 18,497,774 | $ | (354,536) | $ | 18,143,238 | |||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Accounts payable | $ | 94,494 | $ | — | $ | 94,494 | |||||||||||
Accrued expenses and other current liabilities(3) | 592,721 | (33,028) | 559,693 | ||||||||||||||
Current portion of deferred revenues | 579,935 | — | 579,935 | ||||||||||||||
Current portion of operating lease liability | 28,459 | — | 28,459 | ||||||||||||||
Current portion of long-term debt | 1,865,627 | — | 1,865,627 | ||||||||||||||
Total current liabilities | 3,161,236 | (33,028) | 3,128,208 | ||||||||||||||
Long-term debt | 3,443,578 | — | 3,443,578 | ||||||||||||||
Warrant liabilities | 195,952 | — | 195,952 | ||||||||||||||
Non-current portion of deferred revenues | 44,934 | — | 44,934 | ||||||||||||||
Other non-current liabilities(3) | 58,332 | (8,372) | 49,960 | ||||||||||||||
Deferred income taxes(4) | 324,959 | 4,796 | 329,755 | ||||||||||||||
Operating lease liabilities | 58,443 | — | 58,443 | ||||||||||||||
Total liabilities | 7,287,434 | (36,604) | 7,250,830 | ||||||||||||||
Commitments and contingencies | |||||||||||||||||
Shareholders’ equity: | |||||||||||||||||
Preferred Shares, no par value; 14,375,000 shares authorized; 5.25% Mandatory Convertible Preferred Shares, Series A, 14,375,000 and 0 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 1,392,671 | — | 1,392,671 | ||||||||||||||
Ordinary Shares, no par value; unlimited shares authorized at September 30, 2021 and December 31, 2020; 639,750,620 and 606,329,598 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 10,810,130 | — | 10,810,130 | ||||||||||||||
Treasury Shares, at cost; 6,325,860 and 6,325,860 at September 30, 2021 and December 31, 2020, respectively(2) | — | (196,038) | (196,038) | ||||||||||||||
Accumulated other comprehensive income | 324,904 | (6,896) | 318,008 | ||||||||||||||
Accumulated deficit | (1,317,365) | (114,998) | (1,432,363) | ||||||||||||||
Total shareholders’ equity | 11,210,340 | (317,932) | 10,892,408 | ||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 18,497,774 | $ | (354,536) | $ | 18,143,238 |
Consolidated Statements of Operations | |||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||
2021 | |||||||||||||||||
As Originally Reported | Restatement Impacts | As Restated | |||||||||||||||
Revenues, net | $ | 442,117 | $ | — | $ | 442,117 | |||||||||||
Operating expenses: | |||||||||||||||||
Cost of revenues(1) | (141,111) | 374 | (140,737) | ||||||||||||||
Selling, general and administrative costs(1) | (141,219) | (3,626) | (144,845) | ||||||||||||||
Depreciation | (2,657) | — | (2,657) | ||||||||||||||
Amortization | (128,026) | — | (128,026) | ||||||||||||||
Restructuring and impairment(1) | (15,621) | 8,555 | (7,066) | ||||||||||||||
Other operating expense, net | (4,411) | — | (4,411) | ||||||||||||||
Total operating expenses | (433,045) | 5,303 | (427,742) | ||||||||||||||
Income (loss) from operations | 9,072 | 5,303 | 14,375 | ||||||||||||||
Mark to market adjustment on financial instruments | 83,013 | — | 83,013 | ||||||||||||||
Income (loss) before interest expense and income tax | 92,085 | 5,303 | 97,388 | ||||||||||||||
Interest expense and amortization of debt discount, net | (65,194) | — | (65,194) | ||||||||||||||
Income (loss) before income tax | 26,891 | 5,303 | 32,194 | ||||||||||||||
Provision for income taxes | (3,579) | (191) | (3,770) | ||||||||||||||
Net income (loss) | 23,312 | 5,112 | 28,424 | ||||||||||||||
Dividends on preferred shares | (22,431) | — | (22,431) | ||||||||||||||
Net income (loss) attributable to ordinary shares | $ | 881 | $ | 5,112 | $ | 5,993 | |||||||||||
Per share: | |||||||||||||||||
Basic | $ | — | $ | 0.01 | $ | 0.01 | |||||||||||
Diluted | $ | — | $ | 0.01 | $ | 0.01 | |||||||||||
Weighted average shares used to compute earnings per share: | |||||||||||||||||
Basic | 640,834,827 | 634,508,967 | 634,508,967 | ||||||||||||||
Diluted | 645,933,513 | 639,607,653 | 639,607,653 |
Nine Months Ended September 30, | |||||||||||||||||
2021 | |||||||||||||||||
As Originally Reported | Restatement Impacts | As Restated | |||||||||||||||
Revenues, net | $ | 1,316,192 | $ | — | $ | 1,316,192 | |||||||||||
Operating expenses: | |||||||||||||||||
Cost of revenues(1) | (416,459) | (21,852) | (438,311) | ||||||||||||||
Selling, general and administrative costs(1) | (402,378) | (56,469) | (458,847) | ||||||||||||||
Depreciation | (9,243) | — | (9,243) | ||||||||||||||
Amortization | (383,270) | — | (383,270) | ||||||||||||||
Restructuring and impairment(1) | (121,988) | (3,697) | (125,685) | ||||||||||||||
Other operating expense, net | (19,741) | — | (19,741) | ||||||||||||||
Total operating expenses | (1,353,079) | (82,018) | (1,435,097) | ||||||||||||||
Income (loss) from operations | (36,887) | (82,018) | (118,905) | ||||||||||||||
Mark to market adjustment on financial instruments | 113,207 | — | 113,207 | ||||||||||||||
Income (loss) before interest expense and income tax | 76,320 | (82,018) | (5,698) | ||||||||||||||
Interest expense and amortization of debt discount, net | (141,156) | — | (141,156) | ||||||||||||||
Income (loss) before income tax | (64,836) | (82,018) | (146,854) | ||||||||||||||
Provision for income taxes | (18,016) | 5,776 | (12,240) | ||||||||||||||
Net income (loss) | (82,852) | (76,242) | (159,094) | ||||||||||||||
Dividends on preferred shares | (22,431) | — | (22,431) | ||||||||||||||
Net income (loss) attributable to ordinary shares | $ | (105,283) | $ | (76,242) | $ | (181,525) | |||||||||||
Per share: | |||||||||||||||||
Basic | $ | (0.17) | $ | (0.12) | $ | (0.29) | |||||||||||
Diluted | $ | (0.17) | $ | (0.12) | $ | (0.29) | |||||||||||
Weighted average shares used to compute earnings per share: | |||||||||||||||||
Basic | 622,460,931 | 616,135,071 | 616,135,071 | ||||||||||||||
Diluted | 622,460,931 | 616,135,071 | 616,135,071 |
Consolidated Statements of Comprehensive Income (Loss) | |||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||
2021 | |||||||||||||||||
As Originally Reported | Restatement Impacts | As Restated | |||||||||||||||
Net income (loss) | $ | 23,312 | $ | 5,112 | $ | 28,424 | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Interest rate swaps | 333 | — | 333 | ||||||||||||||
Defined benefit pension plans | (4) | — | (4) | ||||||||||||||
Foreign currency translation adjustment | (246,979) | 5,559 | (241,420) | ||||||||||||||
Total other comprehensive income (loss), net of tax | (246,650) | 5,559 | (241,091) | ||||||||||||||
Comprehensive loss | $ | (223,338) | $ | 10,671 | $ | (212,667) |
Consolidated Statements of Comprehensive Income (Loss) | |||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||
2021 | |||||||||||||||||
As Originally Reported | Restatement Impacts | As Restated | |||||||||||||||
Net loss | $ | (82,852) | $ | (76,242) | $ | (159,094) | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Interest rate swaps | 1,884 | — | 1,884 | ||||||||||||||
Defined benefit pension plans | (12) | — | (12) | ||||||||||||||
Foreign currency translation adjustment | (180,489) | 4,243 | (176,246) | ||||||||||||||
Total other comprehensive loss, net of tax | (178,617) | 4,243 | (174,374) | ||||||||||||||
Comprehensive loss | $ | (261,469) | $ | (71,999) | $ | (333,468) |
Consolidated Statements of Changes in Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As Restated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ordinary Shares | Preferred Shares | Treasury Shares | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 606,329,598 | $ | 9,989,284 | — | $ | — | 6,325,860 | $ | (196,038) | $ | 492,382 | $ | (1,250,838) | $ | 9,034,790 | |||||||||||||||||||||||||||||||||||||||||
Exercise of Private Placement Warrants | 212,174 | 3,592 | — | — | — | — | — | — | 3,592 | |||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 835,917 | 5,074 | — | — | — | — | — | — | 5,074 | |||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 15,958 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Shares returned to the Company for net share settlements | (434,059) | (4,489) | — | — | — | — | — | — | (4,489) | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares, net | 4,395,638 | 105,509 | — | — | — | — | — | — | 105,509 | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based award activity | — | 10,479 | — | — | — | — | — | — | 10,479 | |||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (55,951) | (55,951) | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 19,593 | — | 19,593 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 611,355,226 | $ | 10,109,449 | — | $ | — | 6,325,860 | $ | (196,038) | $ | 511,975 | $ | (1,306,789) | $ | 9,118,597 | |||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 1,581,518 | 9,761 | — | — | — | — | — | — | 9,761 | |||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 446,324 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Shares returned to the Company for net share settlements | (809,644) | (17,245) | — | — | — | — | — | — | (17,245) | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares, net | 206,052,933 | 5,780,933 | — | — | — | — | — | — | 5,780,933 | |||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of ordinary shares | — | — | — | — | (177,206,779) | (5,052,165) | — | — | (5,052,165) | |||||||||||||||||||||||||||||||||||||||||||||||
Retirement of treasury shares | (177,206,779) | (5,052,165) | — | — | 177,206,779 | 5,052,165 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based award activity | — | 12,816 | — | — | — | — | — | — | 12,816 | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of preferred shares, net | — | — | 14,375,000 | 1,393,222 | — | — | — | — | 1,393,222 | |||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (131,567) | (131,567) | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 47,124 | — | 47,124 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 641,419,578 | $ | 10,843,549 | 14,375,000 | $ | 1,393,222 | 6,325,860 | $ | (196,038) | $ | 559,099 | $ | (1,438,356) | $ | 11,161,476 | |||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | 328,531 | 2,415 | — | — | — | — | — | — | 2,415 | |||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 114,962 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Shares returned to the Company for net share settlements | (177,481) | 279 | — | — | — | — | — | — | 279 | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of ordinary shares, net | — | (688) | — | — | — | — | — | — | (688) | |||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of ordinary shares | — | — | — | — | (2,599,700) | (65,215) | — | — | (65,215) | |||||||||||||||||||||||||||||||||||||||||||||||
Retirement of treasury shares | (2,599,700) | (65,215) | — | — | 2,599,700 | 65,215 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based award activity | — | 13,649 | — | — | — | — | — | — | 13,649 | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of preferred shares, net | — | — | — | (551) | — | — | — | — | (551) | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends to preferred stockholders | 664,730 | 16,141 | — | — | — | — | — | (22,431) | (6,290) | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | 28,424 | 28,424 | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (241,091) | — | (241,091) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 (As Restated) | 639,750,620 | $ | 10,810,130 | 14,375,000 | $ | 1,392,671 | 6,325,860 | $ | (196,038) | $ | 318,008 | $ | (1,432,363) | $ | 10,892,408 |
Nine Months Ended September 30, | |||||||||||||||||
2021 | |||||||||||||||||
As Originally Reported | Restatement Impacts | As Restated | |||||||||||||||
Cash Flows From Operating Activities | |||||||||||||||||
Net loss | $ | (82,852) | $ | (76,242) | $ | (159,094) | |||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 392,513 | — | 392,513 | ||||||||||||||
Bad debt expense | 6,832 | — | 6,832 | ||||||||||||||
Deferred income tax benefit | (11,084) | 8 | (11,076) | ||||||||||||||
Share-based compensation | 36,944 | (33,890) | 3,054 | ||||||||||||||
Restructuring and impairment | 60,232 | (9,253) | 50,979 | ||||||||||||||
Loss (gain) on foreign currency forward contracts | 4,026 | — | 4,026 | ||||||||||||||
Mark to market adjustment on contingent and phantom shares | (34,503) | 9,418 | (25,085) | ||||||||||||||
Mark to market adjustment on financial instruments | (113,207) | — | (113,207) | ||||||||||||||
Deferred finance charges | 9,050 | — | 9,050 | ||||||||||||||
Other operating activities | 3,565 | — | 3,565 | ||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Accounts receivable | 114,038 | — | 114,038 | ||||||||||||||
Prepaid expenses | (887) | — | (887) | ||||||||||||||
Other assets | 60,749 | — | 60,749 | ||||||||||||||
Accounts payable | 13,550 | — | 13,550 | ||||||||||||||
Accrued expenses and other current liabilities | (14,208) | 104,647 | 90,439 | ||||||||||||||
Deferred revenues | (116,312) | — | (116,312) | ||||||||||||||
Operating lease right of use assets | 16,838 | — | 16,838 | ||||||||||||||
Operating lease liabilities | (37,362) | — | (37,362) | ||||||||||||||
Other liabilities | (2,407) | 5,312 | 2,905 | ||||||||||||||
Net cash provided by operating activities | 305,515 | — | 305,515 | ||||||||||||||
Cash Flows From Investing Activities | |||||||||||||||||
Capital expenditures | (86,197) | — | (86,197) | ||||||||||||||
Acquisitions, net of cash acquired | (14,314) | — | (14,314) | ||||||||||||||
Net cash used in investing activities | (100,511) | — | (100,511) | ||||||||||||||
Cash Flows From Financing Activities | |||||||||||||||||
Proceeds from issuance of debt | 2,000,000 | — | 2,000,000 | ||||||||||||||
Redemption of Notes not exchanged | (157,424) | — | (157,424) | ||||||||||||||
Principal payments on term loan | (21,450) | — | (21,450) | ||||||||||||||
Repayments of revolving credit facility | — | — | — | ||||||||||||||
Payment of debt issuance costs | (7,471) | — | (7,471) | ||||||||||||||
Contingent purchase price payment | — | — | — | ||||||||||||||
Proceeds from issuance of preferred shares | 1,392,671 | — | 1,392,671 | ||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||
2021 | |||||||||||||||||
As Originally Reported | Restatement Impacts | As Restated | |||||||||||||||
Proceeds from issuance of ordinary shares | 728,080 | — | 728,080 | ||||||||||||||
Repurchases of ordinary shares | (65,215) | — | (65,215) | ||||||||||||||
Cash dividends on preferred shares | (1) | — | (1) | ||||||||||||||
Proceeds from warrant exercises | — | — | — | ||||||||||||||
Proceeds from stock options exercised | 17,250 | — | 17,250 | ||||||||||||||
Payments related to tax withholding for stock-based compensation | (21,455) | — | (21,455) | ||||||||||||||
Net cash provided by financing activities | 3,864,985 | — | 3,864,985 | ||||||||||||||
Effects of exchange rates | (4,860) | — | (4,860) | ||||||||||||||
Net increase in cash and cash equivalents, and restricted cash | 4,065,129 | — | 4,065,129 | ||||||||||||||
Beginning of period: | |||||||||||||||||
Cash and cash equivalents | $ | 257,730 | $ | — | $ | 257,730 | |||||||||||
Restricted cash | 11,278 | 3,400 | 14,678 | ||||||||||||||
Total cash and cash equivalents, and restricted cash, beginning of period | 269,008 | 3,400 | 272,408 | ||||||||||||||
Less: Cash included in assets held for sale, end of period | — | — | — | ||||||||||||||
Cash and cash equivalents, and restricted cash, end of period | 4,334,137 | 3,400 | 4,337,537 | ||||||||||||||
End of period: | |||||||||||||||||
Cash and cash equivalents | 2,479,880 | — | 2,479,880 | ||||||||||||||
Restricted cash | 1,854,257 | 3,400 | 1,857,657 | ||||||||||||||
Total cash and cash equivalents, and restricted cash, end of period | $ | 4,334,137 | $ | 3,400 | $ | 4,337,537 | |||||||||||
Supplemental Cash Flow Information: | |||||||||||||||||
Cash paid for interest | $ | 97,401 | $ | — | $ | 97,401 | |||||||||||
Cash paid for income tax | $ | 22,387 | $ | — | $ | 22,387 | |||||||||||
Capital expenditures included in accounts payable | $ | 6,612 | $ | — | $ | 6,612 | |||||||||||
Non-Cash Financing Activities: | |||||||||||||||||
Shares issued to Capri Acquisition Topco Limited | $ | 5,052,165 | $ | — | $ | 5,052,165 | |||||||||||
Retirement of treasury shares | (5,117,380) | — | (5,117,380) | ||||||||||||||
Shares issued as contingent stock consideration associated with the DRG acquisition | 61,619 | — | 61,619 | ||||||||||||||
Shares issued as contingent stock consideration associated with the CPA Global acquisition | 43,890 | — | 43,890 | ||||||||||||||
Shares issued as dividends on our 5.25% Series A Mandatory Convertible Preferred Shares | 16,141 | — | 16,141 | ||||||||||||||
Dividends accrued on our 5.25% Series A Mandatory Convertible Preferred Shares | 6,289 | — | 6,289 | ||||||||||||||
Total Non-Cash Financing Activities | $ | 62,724 | $ | — | $ | 62,724 |
September 30, | Change | September 30, | Change(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2021 | 2020 | 2021 vs. 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 vs. 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Annualized Contract Value | Annualized Contract Value | $ | 936,726 | $ | 860,932 | $ | 75,794 | 8.8 | % | Annualized Contract Value | $ | 1,647.1 | $ | 936.7 | $ | 710.4 | 75.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||
(1) The change in ACV is primarily due to the acquisition of ProQuest in December 2021, supplemented by organic ACV growth of 3.9%. | (1) The change in ACV is primarily due to the acquisition of ProQuest in December 2021, supplemented by organic ACV growth of 3.9%. |
Three Months Ended September 30, | Change 2021 vs. 2020 | ||||||||||||||||||||||||||||
(in thousands, except percentages) | 2021 (As Restated)(1) | 2020 (As Restated)(2) | $ | % | |||||||||||||||||||||||||
Revenues, net | $ | 442,117 | $ | 284,360 | $ | 157,757 | 55.5 | % | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Cost of revenues | (140,737) | (93,554) | 47,183 | 50.4 | % | ||||||||||||||||||||||||
Selling, general and administrative costs | (144,845) | (131,526) | 13,319 | 10.1 | % | ||||||||||||||||||||||||
Depreciation | (2,657) | (2,918) | (261) | (8.9) | % | ||||||||||||||||||||||||
Amortization | (128,026) | (65,696) | 62,330 | 94.9 | % | ||||||||||||||||||||||||
Restructuring and impairment | (7,066) | (3,192) | 3,874 | 121.4 | % | ||||||||||||||||||||||||
Other operating expense, net | (4,411) | (138) | 4,273 | 3,096.4 | % | ||||||||||||||||||||||||
Total operating expenses | (427,742) | (297,024) | 130,718 | 44.0 | % | ||||||||||||||||||||||||
Income (loss) from operations | 14,375 | (12,664) | 27,039 | 213.5 | % | ||||||||||||||||||||||||
Mark to market adjustment on financial instruments | 83,013 | (144,753) | (227,766) | (157.3) | % | ||||||||||||||||||||||||
Income (loss) before interest expense and income tax | 97,388 | (157,417) | 254,805 | 161.9 | % | ||||||||||||||||||||||||
Interest expense and amortization of debt discount, net | (65,194) | (20,244) | 44,950 | 222.0 | % | ||||||||||||||||||||||||
Income (loss) before income tax | 32,194 | (177,661) | 209,855 | 118.1 | % | ||||||||||||||||||||||||
Provision for income taxes | (3,770) | (4,325) | (555) | (12.8) | % | ||||||||||||||||||||||||
Net income (loss) | 28,424 | (181,986) | 210,410 | 115.6 | % | ||||||||||||||||||||||||
Dividends on preferred shares | (22,431) | — | 22,431 | 100.0 | % | ||||||||||||||||||||||||
Net income (loss) attributable to ordinary shares | $ | 5,993 | $ | (181,986) | $ | 187,979 | 103.3 | % |
Nine Months Ended September 30, | Change 2021 vs. 2020 | ||||||||||||||||||||||||||||
(in thousands, except percentages) | 2021 (As Restated)(1) | 2020 (As Restated)(2) | $ | % | |||||||||||||||||||||||||
Revenues, net | $ | 1,316,192 | $ | 798,452 | $ | 517,740 | 64.8 | % | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Cost of revenues | (438,311) | (268,614) | 169,697 | 63.2 | % | ||||||||||||||||||||||||
Selling, general and administrative costs | (458,847) | (368,247) | 90,600 | 24.6 | % | ||||||||||||||||||||||||
Depreciation | (9,243) | (8,151) | 1,092 | 13.4 | % | ||||||||||||||||||||||||
Amortization | (383,270) | (168,049) | 215,221 | 128.1 | % | ||||||||||||||||||||||||
Restructuring and impairment | (125,685) | (26,792) | 98,893 | 369.1 | % | ||||||||||||||||||||||||
Other operating (expense) income, net | (19,741) | 14,675 | 34,416 | 234.5 | % | ||||||||||||||||||||||||
Total operating expenses | (1,435,097) | (825,178) | 609,919 | 73.9 | % | ||||||||||||||||||||||||
Loss from operations | (118,905) | (26,726) | 92,179 | 344.9 | % | ||||||||||||||||||||||||
Mark to market adjustment on financial instruments | 113,207 | (224,175) | (337,382) | (150.5) | % | ||||||||||||||||||||||||
Income (loss) before interest expense and income tax | (5,698) | (250,901) | 245,203 | (97.7) | % | ||||||||||||||||||||||||
Interest expense and amortization of debt discount, net | (141,156) | (72,306) | 68,850 | 95.2 | % | ||||||||||||||||||||||||
Loss before income tax | (146,854) | (323,207) | (176,353) | (54.6) | % | ||||||||||||||||||||||||
Provision for income taxes | (12,240) | (13,693) | (1,453) | (10.6) | % | ||||||||||||||||||||||||
Net loss | (159,094) | (336,900) | (177,806) | (52.8) | % | ||||||||||||||||||||||||
Dividends on preferred shares | (22,431) | — | 22,431 | (100.0) | % | ||||||||||||||||||||||||
Net loss attributable to ordinary shares | $ | (181,525) | $ | (336,900) | $ | (155,375) | (46.1) | % |
Variance Increase/(Decrease) | Percentage of Factors Increase/(Decrease) | |||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Total Variance (Dollars) | Total Variance (Percentage) | Acquisitions | Disposals | FX Impact | Organic | ||||||||||||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||
Subscription revenues | $ | 246,467 | $ | 222,069 | $ | 24,398 | 11.0 | % | 11.2 | % | (4.4) | % | 1.0 | % | 3.2 | % | ||||||||||||||||||||||
Re-occurring revenues | 110,368 | — | 110,368 | 100.0 | % | 100.0 | % | — | % | — | % | — | % | |||||||||||||||||||||||||
Transactional revenues | 85,354 | 64,398 | 20,956 | 32.5 | % | 37.3 | % | (7.9) | % | 0.4 | % | 2.7 | % | |||||||||||||||||||||||||
Deferred revenues adjustment (1) | (72) | (2,107) | 2,035 | 96.6 | % | (2.4) | % | — | % | — | % | 99.0 | % | |||||||||||||||||||||||||
Revenues, net | $ | 442,117 | $ | 284,360 | $ | 157,757 | 55.5 | % | 56.0 | % | (5.2) | % | 0.8 | % | 3.9 | % | ||||||||||||||||||||||
Deferred revenues adjustment (1) | 72 | 2,107 | (2,035) | (96.6) | % | 2.4 | % | — | % | — | % | (99.0) | % | |||||||||||||||||||||||||
Adjusted revenues, net | $ | 442,189 | $ | 286,467 | $ | 155,722 | 54.4 | % | 55.6 | % | (5.2) | % | 0.8 | % | 3.1 | % | ||||||||||||||||||||||
Variance Increase/(Decrease) | Percentage of Factors Increase/(Decrease) | |||||||||||||||||||||||||||||||
Three Months Ended September 30, | Total Variance (Dollars) | Total Variance (Percentage) | Acquisitions | FX Impact | Organic | |||||||||||||||||||||||||||
(in millions, except percentages) | 2022 | 2021 | ||||||||||||||||||||||||||||||
Subscription revenues | $ | 408.3 | $ | 246.5 | $ | 161.8 | 65.6 | % | 68.4 | % | (7.0) | % | 4.3 | % | ||||||||||||||||||
Re-occurring revenues | 102.7 | 110.4 | (7.7) | (7.0) | % | — | % | (9.4) | % | 2.4 | % | |||||||||||||||||||||
Transactional and other revenues | 125.0 | 85.3 | 39.7 | 46.5 | % | 60.5 | % | (4.6) | % | (9.4) | % | |||||||||||||||||||||
Deferred revenues adjustment(1) | (0.3) | (0.1) | (0.2) | (200.0) | % | (200.0) | % | — | % | — | % | |||||||||||||||||||||
Revenues, net | $ | 635.7 | $ | 442.1 | $ | 193.6 | 43.8 | % | 49.7 | % | (7.1) | % | 1.2 | % | ||||||||||||||||||
(1) Reflects the deferred revenues adjustment made as a result of purchase accounting prior to the adoption of ASU No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. In the fourth quarter of 2021, Clarivate adopted ASU No. 2021-08 which allows an acquirer to account for the related revenue contracts in accordance with ASC 606 Revenue from Contracts with Customers, as if it had originated the contracts. This guidance was applied retrospectively to all business combinations for which the acquisition date occurs during or subsequent to 2021. |
Variance Increase/(Decrease) | Percentage of Factors Increase/(Decrease) | |||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | Total Variance (Dollars) | Total Variance (Percentage) | Acquisitions | Disposals | FX Impact | Organic | ||||||||||||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||
Subscription revenues | $ | 725,121 | $ | 631,873 | $ | 93,248 | 14.8 | % | 12.7 | % | (4.4) | % | 3.0 | % | 3.5 | % | ||||||||||||||||||||||
Re-occurring revenues | 336,236 | — | 336,236 | 100.0 | % | 100.0 | % | — | % | — | % | — | % | |||||||||||||||||||||||||
Transactional revenues | 259,300 | 174,000 | 85,300 | 49.0 | % | 46.6 | % | (9.0) | % | 2.1 | % | 9.4 | % | |||||||||||||||||||||||||
Deferred revenues adjustment (1) | (4,465) | (7,421) | 2,956 | 39.8 | % | (59.3) | % | — | % | — | % | 99.1 | % | |||||||||||||||||||||||||
Revenues, net | $ | 1,316,192 | $ | 798,452 | $ | 517,740 | 64.8 | % | 61.7 | % | (5.4) | % | 2.8 | % | 5.7 | % | ||||||||||||||||||||||
Deferred revenues adjustment (1) | 4,465 | 7,421 | (2,956) | (39.8) | % | 59.3 | % | — | % | — | % | (99.1) | % | |||||||||||||||||||||||||
Adjusted revenues, net | $ | 1,320,657 | $ | 805,873 | $ | 514,784 | 63.9 | % | 61.7 | % | (5.4) | % | 2.8 | % | 4.8 | % | ||||||||||||||||||||||
Variance Increase/(Decrease) | Percentage of Factors Increase/(Decrease) | |||||||||||||||||||||||||||||||
Nine Months Ended September 30, | Total Variance (Dollars) | Total Variance (Percentage) | Acquisitions | FX Impact | Organic | |||||||||||||||||||||||||||
(in millions, except percentages) | 2022 | 2021(1) | ||||||||||||||||||||||||||||||
Subscription revenues | $ | 1,220.7 | $ | 728.9 | $ | 491.8 | 67.5 | % | 68.7 | % | (5.0) | % | 3.8 | % | ||||||||||||||||||
Re-occurring revenues | 329.2 | 333.6 | (4.4) | (1.3) | % | — | % | (7.5) | % | 6.1 | % | |||||||||||||||||||||
Transactional and other revenues | 435.5 | 258.2 | 177.3 | 68.7 | % | 73.4 | % | (3.6) | % | (1.1) | % | |||||||||||||||||||||
Deferred revenues adjustment(2) | (0.9) | (4.5) | 3.6 | 80.0 | % | 80.0 | % | — | % | — | % | |||||||||||||||||||||
Revenues, net | $ | 1,984.5 | $ | 1,316.2 | $ | 668.3 | 50.8 | % | 52.7 | % | (5.4) | % | 3.4 | % | ||||||||||||||||||
(1) Certain prior period reported amounts have been reclassified to conform to current period presentation. | ||||||||||||||||||||||||||||||||
(2) Reflects the deferred revenues adjustment made as a result of purchase accounting prior to the adoption of ASU No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. In the fourth quarter of 2021, Clarivate adopted ASU No. 2021-08 which allows an acquirer to account for the related revenue contracts in accordance with ASC 606 Revenue from Contracts with Customers, as if it had originated the contracts. This guidance was applied retrospectively to all business combinations for which the acquisition date occurs during or subsequent to 2021. |
Variance Increase/(Decrease) | Percentage of Factors Increase/(Decrease) | |||||||||||||||||||||||||||||||
Three Months Ended September 30, | Total Variance (Dollars) | Total Variance (Percentage) | Acquisitions | FX Impact | Organic | |||||||||||||||||||||||||||
(in millions, except percentages) | 2022 | 2021 | ||||||||||||||||||||||||||||||
Americas | $ | 349.2 | $ | 217.8 | $ | 131.4 | 60.3 | % | 63.5 | % | (2.5) | % | (0.6) | % | ||||||||||||||||||
Europe/Middle East/Africa | 167.6 | 131.1 | 36.5 | 27.8 | % | 39.9 | % | (11.9) | % | (0.2) | % | |||||||||||||||||||||
Asia Pacific | 119.2 | 93.3 | 25.9 | 27.8 | % | 31.7 | % | (11.3) | % | 7.3 | % | |||||||||||||||||||||
Deferred revenues adjustment(1) | (0.3) | (0.1) | (0.2) | (200.0) | % | (200.0) | % | — | % | — | % | |||||||||||||||||||||
Revenues, net | $ | 635.7 | $ | 442.1 | $ | 193.6 | 43.8 | % | 49.7 | % | (7.1) | % | 1.2 | % | ||||||||||||||||||
(1) Reflects the deferred revenues adjustment made as a result of purchase accounting prior to the adoption of ASU No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. In the fourth quarter of 2021, Clarivate adopted ASU No. 2021-08 which allows an acquirer to account for the related revenue contracts in accordance with ASC 606 Revenue from Contracts with Customers, as if it had originated the contracts. This guidance was applied retrospectively to all business combinations for which the acquisition date occurs during or subsequent to 2021. |
Variance Increase/(Decrease) | Percentage of Factors Increase/(Decrease) | |||||||||||||||||||||||||||||||
Nine Months Ended September 30, | Total Variance (Dollars) | Total Variance (Percentage) | Acquisitions | FX Impact | Organic | |||||||||||||||||||||||||||
(in millions, except percentages) | 2022 | 2021 | ||||||||||||||||||||||||||||||
Americas | $ | 1,094.0 | $ | 642.4 | $ | 451.6 | 70.3 | % | 68.2 | % | (2.0) | % | 4.1 | % | ||||||||||||||||||
Europe/Middle East/Africa | 523.7 | 396.7 | 127.0 | 32.0 | % | 40.5 | % | (8.6) | % | 0.1 | % | |||||||||||||||||||||
Asia Pacific | 367.7 | 281.6 | 86.1 | 30.6 | % | 32.3 | % | (8.3) | % | 6.6 | % | |||||||||||||||||||||
Deferred revenues adjustment(1) | (0.9) | (4.5) | 3.6 | 80.0 | % | 80.0 | % | — | % | — | % | |||||||||||||||||||||
Revenues, net | $ | 1,984.5 | $ | 1,316.2 | $ | 668.3 | 50.8 | % | 52.7 | % | (5.4) | % | 3.4 | % | ||||||||||||||||||
(1) Reflects the deferred revenues adjustment made as a result of purchase accounting prior to the adoption of ASU No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. In the fourth quarter of 2021, Clarivate adopted ASU No. 2021-08 which allows an acquirer to account for the related revenue contracts in accordance with ASC 606 Revenue from Contracts with Customers, as if it had originated the contracts. This guidance was applied retrospectively to all business combinations for which the acquisition date occurs during or subsequent to 2021. |
Variance Increase/(Decrease) | Percentage of Factors Increase/(Decrease) | ||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Total Variance (Dollars) | Total Variance (Percentage) | Acquisitions | Disposals | FX Impact | Organic | |||||||||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | |||||||||||||||||||||||||||||||||
Americas | $ | 217,732 | $ | 146,213 | $ | 71,519 | 48.9 | % | 51.7 | % | (7.4) | % | 0.1 | % | 4.5 | % | |||||||||||||||||||
Europe/Middle East/Africa | 131,112 | 77,552 | 53,560 | 69.1 | % | 68.0 | % | (2.7) | % | 2.4 | % | 1.4 | % | ||||||||||||||||||||||
Asia Pacific | 93,345 | 62,702 | 30,643 | 48.9 | % | 49.6 | % | (3.1) | % | 0.5 | % | 1.8 | % | ||||||||||||||||||||||
Deferred revenues adjustment (1) | (72) | (2,107) | 2,035 | 96.6 | % | (2.4) | % | — | % | — | % | 99.0 | % | ||||||||||||||||||||||
Revenues, net | $ | 442,117 | $ | 284,360 | $ | 157,757 | 55.5 | % | 56.0 | % | (5.2) | % | 0.8 | % | 3.9 | % | |||||||||||||||||||
Deferred revenues adjustment (1) | 72 | 2,107 | (2,035) | (96.6) | % | 2.4 | % | — | % | — | % | (99.0) | % | ||||||||||||||||||||||
Adjusted revenues, net | $ | 442,189 | $ | 286,467 | $ | 155,722 | 54.4 | % | 55.6 | % | (5.2) | % | 0.8 | % | 3.1 | % | |||||||||||||||||||
Variance Increase/(Decrease) | Percentage of Factors Increase/(Decrease) | |||||||||||||||||||||||||||||||
Three Months Ended September 30, | Total Variance (Dollars) | Total Variance (Percentage) | Acquisitions | FX Impact | Organic | |||||||||||||||||||||||||||
(in millions, except percentages) | 2022 | 2021 | ||||||||||||||||||||||||||||||
Academia and Government | $ | 307.1 | $ | 102.3 | $ | 204.8 | 200.2 | % | 206.0 | % | (8.1) | % | 2.3 | % | ||||||||||||||||||
Life Sciences and Healthcare | 103.6 | 98.5 | 5.1 | 5.2 | % | 9.5 | % | (4.6) | % | 0.2 | % | |||||||||||||||||||||
Intellectual Property | 225.3 | 241.4 | (16.1) | (6.7) | % | — | % | (7.7) | % | 1.1 | % | |||||||||||||||||||||
Deferred revenues adjustment(1) | (0.3) | (0.1) | (0.2) | (200.0) | % | (200.0) | % | — | % | — | % | |||||||||||||||||||||
Revenues, net | $ | 635.7 | $ | 442.1 | $ | 193.6 | 43.8 | % | 49.7 | % | (7.1) | % | 1.2 | % | ||||||||||||||||||
(1) Reflects the deferred revenues adjustment made as a result of purchase accounting prior to the adoption of ASU No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. In the fourth quarter of 2021, Clarivate adopted ASU No. 2021-08 which allows an acquirer to account for the related revenue contracts in accordance with ASC 606 Revenue from Contracts with Customers, as if it had originated the contracts. This guidance was applied retrospectively to all business combinations for which the acquisition date occurs during or subsequent to 2021. |
Variance Increase/(Decrease) | Percentage of Factors Increase/(Decrease) | ||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | Total Variance (Dollars) | Total Variance (Percentage) | Acquisitions | Disposals | FX Impact | Organic | |||||||||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | |||||||||||||||||||||||||||||||||
Americas | $ | 642,352 | $ | 405,791 | $ | 236,561 | 58.3 | % | 59.1 | % | (7.9) | % | 0.4 | % | 6.7 | % | |||||||||||||||||||
Europe/Middle East/Africa | 396,658 | 218,195 | 178,463 | 81.8 | % | 75.7 | % | (2.9) | % | 6.3 | % | 2.7 | % | ||||||||||||||||||||||
Asia Pacific | 281,647 | 181,887 | 99,760 | 54.8 | % | 50.8 | % | (2.7) | % | 3.9 | % | 2.9 | % | ||||||||||||||||||||||
Deferred revenues adjustment (1) | (4,465) | (7,421) | 2,956 | 39.8 | % | (59.3) | % | — | % | — | % | 99.1 | % | ||||||||||||||||||||||
Revenues, net | $ | 1,316,192 | $ | 798,452 | $ | 517,740 | 64.8 | % | 61.7 | % | (5.4) | % | 2.8 | % | 5.7 | % | |||||||||||||||||||
Deferred revenues adjustment (1) | 4,465 | 7,421 | (2,956) | (39.8) | % | 59.3 | % | — | % | — | % | (99.1) | % | ||||||||||||||||||||||
Adjusted revenues, net | $ | 1,320,657 | $ | 805,873 | $ | 514,784 | 63.9 | % | 61.7 | % | (5.4) | % | 2.8 | % | 4.8 | % | |||||||||||||||||||
Variance Increase/(Decrease) | Percentage of Factors Increase/(Decrease) | ||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Total Variance (Dollars) | Total Variance (Percentage) | Acquisitions | Disposals | FX Impact | Organic | |||||||||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | |||||||||||||||||||||||||||||||||
Science Segment | $ | 200,843 | $ | 190,718 | $ | 10,125 | 5.3 | % | 0.3 | % | — | % | 1.0 | % | 4.1 | % | |||||||||||||||||||
IP Segment | 241,346 | 95,749 | 145,597 | 152.1 | % | 165.9 | % | (15.6) | % | 0.6 | % | 1.2 | % | ||||||||||||||||||||||
Deferred revenues adjustment (1) | (72) | (2,107) | 2,035 | 96.6 | % | (2.4) | % | — | % | — | % | 99.0 | % | ||||||||||||||||||||||
Revenues, net | $ | 442,117 | $ | 284,360 | $ | 157,757 | 55.5 | % | 56.0 | % | (5.2) | % | 0.8 | % | 3.9 | % | |||||||||||||||||||
Deferred revenues adjustment (1) | 72 | 2,107 | (2,035) | (96.6) | % | 2.4 | % | — | % | — | % | (99.0) | % | ||||||||||||||||||||||
Adjusted revenues, net | $ | 442,189 | $ | 286,467 | $ | 155,722 | 54.4 | % | 55.6 | % | (5.2) | % | 0.8 | % | 3.1 | % | |||||||||||||||||||
Variance Increase/(Decrease) | Percentage of Factors Increase/(Decrease) | |||||||||||||||||||||||||||||||
Nine Months Ended September 30, | Total Variance (Dollars) | Total Variance (Percentage) | Acquisitions | FX Impact | Organic | |||||||||||||||||||||||||||
(in millions, except percentages) | 2022 | 2021 | ||||||||||||||||||||||||||||||
Academia and Government | $ | 951.6 | $ | 303.3 | $ | 648.3 | 213.7 | % | 217.9 | % | (5.6) | % | 1.4 | % | ||||||||||||||||||
Life Sciences and Healthcare | 327.7 | 291.1 | 36.6 | 12.6 | % | 9.9 | % | (3.5) | % | 6.1 | % | |||||||||||||||||||||
Intellectual Property | 706.1 | 726.3 | (20.2) | (2.8) | % | — | % | (6.0) | % | 3.2 | % | |||||||||||||||||||||
Deferred revenues adjustment(1) | (0.9) | (4.5) | 3.6 | 80.0 | % | 80.0 | % | — | % | — | % | |||||||||||||||||||||
Revenues, net | $ | 1,984.5 | $ | 1,316.2 | $ | 668.3 | 50.8 | % | 52.7 | % | (5.4) | % | 3.4 | % | ||||||||||||||||||
(1) Reflects the deferred revenues adjustment made as a result of purchase accounting prior to the adoption of ASU No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. In the fourth quarter of 2021, Clarivate adopted ASU No. 2021-08 which allows an acquirer to account for the related revenue contracts in accordance with ASC 606 Revenue from Contracts with Customers, as if it had originated the contracts. This guidance was applied retrospectively to all business combinations for which the acquisition date occurs during or subsequent to 2021. |
Three Months Ended September 30, | Change 2022 vs. 2021 | Nine Months Ended September 30, | Change 2022 vs. 2021 | ||||||||||||||||||||||||||||||||||||||||||||
(in millions, except percentages) | 2022 | 2021 | $ | % | 2022 | 2021 | $ | % | |||||||||||||||||||||||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenues | $ | 223.7 | $ | 140.7 | $ | 83.0 | 59.0 | % | $ | 717.0 | $ | 438.3 | $ | 278.7 | 63.6 | % | |||||||||||||||||||||||||||||||
Selling, general and administrative costs | 169.5 | 144.8 | 24.7 | 17.1 | % | 549.3 | 458.8 | 90.5 | 19.7 | % | |||||||||||||||||||||||||||||||||||||
Total cost of revenues and selling, general and administrative costs | $ | 393.2 | $ | 285.5 | $ | 107.7 | 37.7 | % | $ | 1,266.3 | $ | 897.1 | $ | 369.2 | 41.2 | % | |||||||||||||||||||||||||||||||
Depreciation and amortization expense | $ | 169.7 | $ | 130.7 | $ | 39.0 | 29.8 | % | $ | 521.7 | $ | 392.6 | $ | 129.1 | 32.9 | % | |||||||||||||||||||||||||||||||
As a percentage of revenue: | |||||||||||||||||||||||||||||||||||||||||||||||
Total cost of revenues and selling, general and administrative costs | 61.9 | % | 64.6 | % | 63.8 | % | 68.2 | % | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization expense | 26.7 | % | 29.6 | % | 26.3 | % | 29.8 | % |
Variance Increase/(Decrease) | Percentage of Factors Increase/(Decrease) | ||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | Total Variance (Dollars) | Total Variance (Percentage) | Acquisitions | Disposals | FX Impact | Organic | |||||||||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | |||||||||||||||||||||||||||||||||
Science Segment | $ | 594,422 | $ | 521,649 | $ | 72,773 | 14.0 | % | 4.6 | % | — | % | 3.1 | % | 6.2 | % | |||||||||||||||||||
IP Segment | 726,235 | 284,224 | 442,011 | 155.5 | % | 166.5 | % | (15.2) | % | 2.1 | % | 2.1 | % | ||||||||||||||||||||||
Deferred revenues adjustment (1) | (4,465) | (7,421) | 2,956 | 39.8 | % | (59.3) | % | — | % | — | % | 99.1 | % | ||||||||||||||||||||||
Revenues, net | $ | 1,316,192 | $ | 798,452 | $ | 517,740 | 64.8 | % | 61.7 | % | (5.4) | % | 2.8 | % | 5.7 | % | |||||||||||||||||||
Deferred revenues adjustment (1) | 4,465 | 7,421 | (2,956) | (39.8) | % | 59.3 | % | — | % | — | % | (99.1) | % | ||||||||||||||||||||||
Adjusted revenues, net | $ | 1,320,657 | $ | 805,873 | $ | 514,784 | 63.9 | % | 61.7 | % | (5.4) | % | 2.8 | % | 4.8 | % | |||||||||||||||||||
Three Months Ended September 30, | Change 2022 vs. 2021 | Nine Months Ended September 30, | Change 2022 vs. 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | $ | % | 2022 | 2021 | $ | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and impairment | $ | 26.0 | $ | 7.1 | $ | 18.9 | 266.2 | % | $ | 56.9 | $ | 125.7 | $ | (68.8) | (54.7) | % |
Total Costs Incurred to Date | Costs Expected to be Incurred in Future Periods | ||||||||||||||||||||||
One Clarivate Program | $ | 33.7 | $ | 15.0 | |||||||||||||||||||
ProQuest Acquisition Integration Program | 45.1 | 15.0 | |||||||||||||||||||||
Other Restructuring Programs: | |||||||||||||||||||||||
CPA Global Acquisition Integration and Optimization Program | 127.3 | — | |||||||||||||||||||||
DRG Acquisition Integration Program | 7.5 | — | |||||||||||||||||||||
Operation Simplification and Optimization Program | 44.5 | — | |||||||||||||||||||||
Total Other Restructuring Programs | $ | 179.3 | $ | — |
Three Months Ended September 30, | Change 2022 vs. 2021 | Nine Months Ended September 30, | Change 2022 vs. 2021 | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | $ | % | 2022 | 2021 | $ | % | ||||||||||||||||||||||||||||||||||||||||
Other operating (income) expense, net | $ | (26.6) | $ | 4.4 | $ | 31.0 | 704.5 | % | $ | (64.9) | $ | 19.7 | $ | 84.6 | 429.4 | % |
Three Months Ended September 30, | Change 2022 vs. 2021 | Nine Months Ended September 30, | Change 2022 vs. 2021 | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | $ | % | 2022 | 2021 | $ | % | ||||||||||||||||||||||||||||||||||||||||
Mark to market (gain) loss on financial instruments | $ | (53.3) | $ | (83.0) | $ | (29.7) | (35.8) | % | $(202.7) | $(113.2) | $ | 89.5 | 79.1 | % |
Three Months Ended September 30, | Change 2022 vs. 2021 | Nine Months Ended September 30, | Change 2022 vs. 2021 | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | $ | % | 2022 | 2021 | $ | % | ||||||||||||||||||||||||||||||||||||||||
Interest expense and amortization of debt discount, net | $ | 71.5 | $ | 65.3 | $ | 6.2 | 9.5 | % | $ | 193.3 | $ | 141.2 | $ | 52.1 | 36.9 | % |
Three Months Ended September 30, | Change 2022 vs. 2021 | Nine Months Ended September 30, | Change 2022 vs. 2021 | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | $ | % | 2022 | 2021 | $ | % | ||||||||||||||||||||||||||||||||||||||||
Dividends on preferred shares | $ | 18.9 | $ | 22.4 | $ | (3.5) | (15.6) | % | $ | 56.3 | $ | 22.4 | $ | 33.9 | 151.3 | % |
Three Months Ended September 30, | Variance | ||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | $ | % | |||||||||||||||||||
Revenues, net | $ | 442,117 | $ | 284,360 | $ | 157,757 | 55.5 | % | |||||||||||||||
Deferred revenues adjustment | 72 | 2,107 | (2,035) | (96.6) | % | ||||||||||||||||||
Adjusted revenues | $ | 442,189 | $ | 286,467 | $ | 155,722 | 54.4 | % | |||||||||||||||
Nine Months Ended September 30, | Variance | ||||||||||||||||||||||
(in thousands, except percentages) | 2021 | 2020 | $ | % | |||||||||||||||||||
Revenues, net | $ | 1,316,192 | $ | 798,452 | $ | 517,740 | 64.8 | % | |||||||||||||||
Deferred revenues adjustment | 4,465 | 7,421 | (2,956) | (39.8) | % | ||||||||||||||||||
Adjusted revenues | $ | 1,320,657 | $ | 805,873 | $ | 514,784 | 63.9 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in millions, except percentages) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net income (loss) attributable to ordinary shares | $ | (4,434.4) | $ | 6.0 | $ | (4,339.9) | $ | (181.5) | |||||||||||||||
Dividends on preferred shares | 18.9 | 22.4 | 56.3 | 22.4 | |||||||||||||||||||
Net income (loss) | (4,415.5) | 28.4 | (4,283.6) | (159.1) | |||||||||||||||||||
Provision for income taxes | 22.1 | 3.7 | 48.9 | 12.2 | |||||||||||||||||||
Depreciation and amortization | 169.7 | 130.7 | 521.7 | 392.6 | |||||||||||||||||||
Interest expense and amortization of debt discount, net | 71.5 | 65.3 | 193.3 | 141.2 | |||||||||||||||||||
Deferred revenues adjustment(1) | 0.3 | 0.1 | 0.9 | 4.5 | |||||||||||||||||||
Transaction related costs(2) | (3.7) | 16.4 | 8.1 | 7.4 | |||||||||||||||||||
Share-based compensation expense | 20.8 | 10.6 | 79.9 | 107.7 | |||||||||||||||||||
Restructuring and impairment(3) | 26.0 | 7.1 | 56.9 | 125.7 | |||||||||||||||||||
Goodwill impairment | 4,448.6 | — | 4,448.6 | — | |||||||||||||||||||
Mark to market (gain) loss on financial instruments(4) | (53.3) | (83.0) | (202.7) | (113.2) | |||||||||||||||||||
Other(5) | (14.9) | 10.7 | (63.7) | 24.8 | |||||||||||||||||||
Adjusted EBITDA | $ | 271.6 | $ | 190.0 | $ | 808.3 | $ | 543.8 | |||||||||||||||
Adjusted EBITDA margin | 42.7% | 43.0% | 40.7% | 41.2% | |||||||||||||||||||
(1) Reflects the deferred revenues adjustment made as a result of purchase accounting prior to the adoption of ASU No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. In the fourth quarter of 2021, Clarivate adopted ASU No. 2021-08 which allows an acquirer to account for the related revenue contracts in accordance with ASC 606, Revenue from Contracts with Customers, as if it had originated the contracts. This guidance was applied retrospectively to all business combinations for which the acquisition date occurs during or subsequent to 2021. | |||||||||||||||||||||||
(2) Includes costs incurred to complete business combination transactions, including acquisitions, dispositions and capital market activities and include advisory, legal, and other professional and consulting costs. During the six months ended June 30, 2021, this also includes the mark-to-market adjustments on the contingent stock consideration associated with the CPA Global and DRG acquisitions. | |||||||||||||||||||||||
(3) Primarily reflects costs related to restructuring and impairment associated with One Clarivate, ProQuest and CPA Global Programs. Refer to Note 21 - Restructuring and Impairment in Item 1, Financial Statements and Supplementary Data, for further information. | |||||||||||||||||||||||
(4) Reflects mark-to-market adjustments on financial instruments under ASC 815, Derivatives and Hedging. Warrant instruments that do not meet the criteria to be considered indexed to an entity's own stock shall be initially classified as a liability at their estimated fair values, regardless of the likelihood that such instruments will ever be settled in cash. In periods subsequent to issuance, changes in the estimated fair value of the liabilities are reported through earnings. | |||||||||||||||||||||||
(5) Primarily includes the net impact of foreign exchange gains and losses related to the re-measurement of balances and other items that do not reflect our ongoing operating performance. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in thousands, except percentages) | 2021 (As Restated)(6) | 2020 (As Restated)(7) | 2021 (As Restated)(6) | 2020 (As Restated)(7) | |||||||||||||||||||
Net income (loss) attributable to ordinary shares | $ | 5,993 | $ | (181,986) | $ | (181,525) | $ | (336,900) | |||||||||||||||
Dividends on preferred shares | 22,431 | — | 22,431 | — | |||||||||||||||||||
Net income (loss) | 28,424 | (181,986) | (159,094) | (336,900) | |||||||||||||||||||
Provision (benefit) for income taxes | 3,770 | 4,325 | 12,240 | 13,693 | |||||||||||||||||||
Depreciation and amortization | 130,683 | 68,614 | 392,513 | 176,200 | |||||||||||||||||||
Interest expense and amortization of debt discount, net | 65,194 | 20,244 | 141,156 | 72,306 | |||||||||||||||||||
Deferred revenues adjustment (1) | 72 | 2,107 | 4,465 | 7,421 | |||||||||||||||||||
Transaction related costs (2) | 16,491 | 34,938 | 7,473 | 70,154 | |||||||||||||||||||
Share-based compensation expense | 10,609 | 6,796 | 107,767 | 31,121 | |||||||||||||||||||
Restructuring and impairment (3) | 7,066 | 3,192 | 125,685 | 26,792 | |||||||||||||||||||
Mark to market adjustment on financial instruments (4) | (83,013) | 144,753 | (113,207) | 224,175 | |||||||||||||||||||
Other (5) | 10,700 | 5,224 | 24,817 | 1,586 | |||||||||||||||||||
Adjusted EBITDA | $ | 189,996 | $ | 108,207 | $ | 543,815 | $ | 286,548 | |||||||||||||||
Adjusted EBITDA margin | 43.0% | 37.8% | 41.2% | 35.6% |
Total Liquidity | September 30, | December 31, | |||||||||||||||||||||
(in millions) | 2022 | 2021 | |||||||||||||||||||||
Cash and cash equivalents | $ | 446.0 | $ | 430.9 | |||||||||||||||||||
Additional availability under revolving credit facility | 565.8 | 168.9 | |||||||||||||||||||||
$ | 1,011.8 | $ | 599.8 |
Nine Months Ended September 30, | Change 2021 vs. 2020 | ||||||||||||||||||||||
(in thousands) | 2021 | 2020 | $ | % | |||||||||||||||||||
Net cash provided by operating activities | $ | 305,515 | $ | 128,022 | $ | 177,493 | 139 | % | |||||||||||||||
Net cash used in investing activities | (100,511) | (966,151) | (865,640) | (90) | % | ||||||||||||||||||
Net cash provided by financing activities | 3,864,985 | 1,370,079 | 2,494,906 | 182 | % | ||||||||||||||||||
Effect of exchange rates | (4,860) | (6,447) | 1,587 | 25 | % | ||||||||||||||||||
Net increase in cash and cash equivalents, and restricted cash | 4,065,129 | 525,503 | 3,539,626 | 674 | % | ||||||||||||||||||
Cash and cash equivalents, and restricted cash beginning of the year | 272,408 | 76,139 | 196,269 | 258 | % | ||||||||||||||||||
Cash and cash equivalents, and restricted cash end of the period | $ | 4,337,537 | $ | 601,642 | $ | 3,735,895 | 621 | % |
Net Working Capital | |||||||||||||||||||||||
(in thousands, except ratio) | September 30, 2021 | December 31, 2020 | September 30, 2020 | December 31, 2019 | |||||||||||||||||||
Current assets | 5,048,540 | 1,147,564 | 944,251 | 493,076 | |||||||||||||||||||
Current liabilities | 3,128,208 | 1,423,093 | 662,676 | 650,998 | |||||||||||||||||||
Net Working Capital | 1,920,332 | (275,529) | 281,575 | (157,922) |
Nine Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Net cash provided by operating activities | $ | 372.4 | $ | 305.5 | |||||||
Net cash used in investing activities | (170.8) | (100.5) | |||||||||
Net cash (used in) provided by financing activities | (267.5) | 3,865.0 | |||||||||
Effect of exchange rates | (64.5) | (4.9) | |||||||||
Net increase (decrease) in cash and cash equivalents, and restricted cash | $ | (130.4) | $ | 4,065.1 | |||||||
Net increase (decrease) in cash and cash equivalents | $ | 17.7 | $ | 2,222.2 | |||||||
Net increase (decrease) in restricted cash | (148.1) | 1,842.9 | |||||||||
Net increase (decrease) in cash and cash equivalents, and restricted cash | $ | (130.4) | $ | 4,065.1 | |||||||
Cash and cash equivalents, beginning of period | $ | 430.9 | $ | 257.7 | |||||||
Restricted cash, beginning of period | 156.7 | 14.7 | |||||||||
Cash and cash equivalents, and restricted cash beginning of the year | $ | 587.6 | $ | 272.4 | |||||||
Cash and cash equivalents, end of period | $ | 448.6 | $ | 2,479.9 | |||||||
Restricted cash, end of period | 8.6 | 1,857.6 | |||||||||
Cash and cash equivalents, and restricted cash end of the period | $ | 457.2 | $ | 4,337.5 | |||||||
Nine Months Ended September 30, | |||||||||||
2021 | 2020 | ||||||||||
Net cash provided by operating activities | $ | 305,515 | $ | 128,022 | |||||||
Capital expenditures | (86,197) | (78,597) | |||||||||
Free cash flow | $ | 219,318 | $ | 49,425 |
September 30, 2022 | December 31, 2021 | September 30, 2021 | December 31, 2020 | ||||||||||||||||||||
Current assets | $ | 1,451.8 | $ | 1,637.2 | $ | 5,048.5 | $ | 1,147.6 | |||||||||||||||
Current liabilities | 1,632.5 | 1,902.0 | 3,128.2 | 1,423.1 | |||||||||||||||||||
Net Working Capital | $ | (180.7) | $ | (264.8) | $ | 1,920.3 | $ | (275.5) |
Nine Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Net cash provided by operating activities | $ | 372.4 | $ | 305.5 | |||||||
Capital expenditures | (156.5) | (86.2) | |||||||||
Free cash flow | $ | 215.9 | $ | 219.3 | |||||||
Cash paid for CPA Global equity plan(1) | 150.7 | — | |||||||||
Cash paid for restructuring costs(2) | 33.4 | 65.8 | |||||||||
Cash paid for transaction related costs(3) | 11.9 | 21.2 | |||||||||
Cash paid for other costs(4) | 2.8 | 1.5 | |||||||||
Cash paid for debt issuance costs | — | 7.8 | |||||||||
Adjusted free cash flow | $ | 414.7 | $ | 315.6 | |||||||
(1) Includes cash funded by a trust related to CPA Global equity plan payout upon vesting. | |||||||||||
(2) Reflects cash payments for costs primarily related to restructuring and lease-exit activities associated with the One Clarivate, ProQuest and CPA Global Programs. The costs associated with the CPA Global program were substantially complete as of June 30, 2022. | |||||||||||
(3) Includes cash paid for costs incurred to complete business combination transactions, which comprises of acquisitions, dispositions and capital market activities, as well as advisory, legal, and other professional and consulting costs. | |||||||||||
(4) Includes cash paid for other costs that do not reflect our ongoing operating performance. |
Twelve months ended September 30, | |||||||||||||||||
2021 (As Restated)(9) | 2020 (As Restated)(10) | ||||||||||||||||
(in thousands) | |||||||||||||||||
Net loss attributable to ordinary shares | $ | (195,250) | $ | (421,321) | |||||||||||||
Dividends on preferred shares | 22,431 | — | |||||||||||||||
Net loss | (172,819) | (421,321) | |||||||||||||||
Provision for income taxes | (4,151) | 18,298 | |||||||||||||||
Depreciation and amortization | 519,463 | 231,585 | |||||||||||||||
Interest, net | 180,764 | 136,057 | |||||||||||||||
Deferred revenues adjustment (1) | 20,145 | 7,497 | |||||||||||||||
Transaction related costs (2) | 36,605 | 74,295 | |||||||||||||||
Share-based compensation expense | 147,118 | 35,829 | |||||||||||||||
Gain on sale of Techstreet | (28,140) | — | |||||||||||||||
Restructuring and impairment (3) | 155,031 | 42,462 | |||||||||||||||
Impairment on assets held for sale | — | 18,431 | |||||||||||||||
Mark to market adjustment on financial instruments (4) | (132,320) | 223,809 | |||||||||||||||
Other (5) | 22,171 | 4,157 | |||||||||||||||
Adjusted EBITDA | 743,867 | 371,099 | |||||||||||||||
Realized foreign exchange gain | 4,609 | (5,730) | |||||||||||||||
DRG Adjusted EBITDA impact (6) | — | 26,580 | |||||||||||||||
Bioinfogate Adjusted EBITDA impact(6) | 325 | — | |||||||||||||||
Cost savings (7) | 59,039 | 36,345 | |||||||||||||||
Excess standalone costs (8) | — | 29,959 | |||||||||||||||
Standalone Adjusted EBITDA | $ | 807,840 | $ | 458,253 |
Twelve months ended September 30, | |||||||||||||||||
(in thousands) | 2021 | 2020 | |||||||||||||||
Actual standalone company infrastructure costs | $ | — | $ | 164,896 | |||||||||||||
Steady state standalone cost estimate | — | (134,937) | |||||||||||||||
Excess standalone costs | $ | — | $ | 29,959 |
Rate for 1 USD | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||
Currency: | 2022 | 2021 | Percentage Change | 2022 | 2021 | Percentage Change | ||||||||||||||||||||||||||||||||
GBP | $ | 0.85 | $ | 0.73 | 16 | % | $ | 0.80 | $ | 0.72 | 11 | % | ||||||||||||||||||||||||||
EUR | 0.99 | 0.85 | 16 | % | 0.94 | 0.84 | 12 | % | ||||||||||||||||||||||||||||||
JPY | 138.24 | 110.08 | 26 | % | 128.17 | 108.51 | 18 | % |
Period | Total Number of Shares Purchased (1) | Price Paid Per Share | Total Number of Shares Purchased As Part of Publicly Announced Plans or Programs | Number of Shares that May Yet Be Purchased Under Plans or Programs | ||||||||||||||||||||||
January 1, 2021-January 31, 2021 | 8,250 | $ | 16.98 | — | — | |||||||||||||||||||||
February 1, 2021-February 28, 2021 | 33,559 | $ | 13.05 | — | — | |||||||||||||||||||||
March 1, 2021-March 31, 2021 | 311,640 | $ | 12.65 | — | — | |||||||||||||||||||||
April 1, 2021-April 30, 2021 | 200,199 | $ | 10.97 | — | — | |||||||||||||||||||||
May 1, 2021-May 31, 2021 | 298,624 | $ | 13.00 | — | — | |||||||||||||||||||||
June 1, 2021-June 30, 2021 | 310,821 | $ | 16.56 | — | — | |||||||||||||||||||||
July 1, 2021-July 31, 2021 | 17,648 | $ | 33.92 | — | 10,965,000 | |||||||||||||||||||||
August 1, 2021-August 31, 2021 | 137,783 | $ | 5.45 | 1,769,000 | 9,196,000 | |||||||||||||||||||||
September 1, 2021-September 9, 2021 | 22,050 | $ | 5.72 | 830,700 | 8,365,300 | |||||||||||||||||||||
September 10, 2021-September 31, 2021 | — | — | ||||||||||||||||||||||||
Total | 1,340,574 | 2,599,700 | — |
Period | Total Number of Shares Purchased(1) | Price Paid Per Share | Total Number of Shares Purchased As Part of Publicly Announced Plans or Programs | Approx. Dollar value of shares that may Yet Be Purchased Under Plans or Programs | ||||||||||||||||||||||
January 1, 2022-January 31, 2022 | 9,580 | $ | 18.00 | — | $ | — | ||||||||||||||||||||
February 1, 2022-February 28, 2022 | 7,825 | $ | 16.78 | — | $ | 1,000 | ||||||||||||||||||||
March 1, 2022-March 31, 2022 | 4,559,871 | $ | 16.10 | 4,106,285 | $ | 934 | ||||||||||||||||||||
April 1, 2022-April 30, 2022 | 6,718,312 | $ | 16.44 | 6,611,994 | $ | 825 | ||||||||||||||||||||
May 1, 2022-May 31, 2022 | 257,078 | $ | 14.36 | — | $ | 825 | ||||||||||||||||||||
June 1, 2022-June 30, 2022 | 20,413 | $ | 13.51 | — | $ | 825 | ||||||||||||||||||||
July 1, 2022-July 31, 2022 | 73,053 | $ | 13.90 | — | $ | 825 | ||||||||||||||||||||
August 1, 2022-August 31, 2022 | 110,382 | $ | 13.62 | — | $ | 825 | ||||||||||||||||||||
September 1, 2022-September 30, 2022 | 20,478 | $ | 10.83 | — | $ | 825 | ||||||||||||||||||||
Total | 11,776,992 | $ | 16.21 | 10,718,279 | ||||||||||||||||||||||
(1) Includes shares withheld to satisfy tax withholding obligations on behalf of employees that occur upon vesting and delivery of outstanding shares underlying stock options and restricted stock units under the 2019 Incentive Award Plan. |
10.2** | |||||
31* | |||||
32* | |||||
101* | The following information from our Form | ||||
104* | The cover page from the Company's |
CLARIVATE PLC | |||||
By: | /s/ Jonathan M. Collins | ||||
Name: Jonathan M. Collins | |||||
Title: Executive Vice President & Chief Financial Officer |