Operating Expenses

9 Months Ended

Sep. 30, 2023

8. Operating Expenses

Acquisition-related and Integration Costs

Acquisition-related and integration costs consist of operating expenses incurred in connection with business combinations, such as due diligence, advisory, legal, integration, severance, acceleration of share-based payments expense and share-based continuing employment costs. Integration costs primarily include costs with third-party consulting companies to support integration activities to achieve cost synergies and integration goals.

The following is a summary of our acquisition-related and integration costs:


	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
IAA
Financing	$	—	$	—	$	30.0	$	—
Severance	6.6		—		29.3		—
Integration	11.7		—		28.8		—
Acceleration of share-based payments expense	0.6		—		6.5		—
Legal	0.1		—		12.2		—
Investment banking, consulting and other acquisition-related costs	2.9		—		67.2		—
Settlement of pre-existing contractual arrangement	—				16.3
	21.9		—		190.3		—

Other acquisitions	1.2		2.0		5.3		15.1
Total acquisition-related and integration costs	$	23.1	$	2.0	$	195.6	$	15.1

During the second quarter of 2023, the Company paid $20.0 million to settle a pre-existing contractual arrangement held by IAA prior to the acquisition for the benefit of the combined business. The payment extinguished $3.7 million of related pre-acquisition accrued liabilities recognized on the balance sheet at acquisition and $16.3 million was recognized in acquisition-related and integration costs.

Depreciation and Amortization


	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Depreciation	$	24.9	$	7.8	$	61.9	$	23.5
Amortization	76.2		16.5		185.0		49.3
	$	101.1	$	24.3	$	246.9	$	72.8