Operating Expenses

12 Months Ended

Dec. 31, 2023

Operating Expenses [Abstract]

Operating Expenses

7. 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:

Year ended December 31,	2023		2022		2021
IAA
Financing	$	30.0	$	—	$	—
Severance	41.1		—		—
Integration	34.5		—		—
Acceleration of share-based payments expense	6.8		—		—
Legal	12.3		7.8		—
Investment banking, consulting and other acquisition-related costs	68.8		13.5		—
Settlement of pre-existing contractual arrangement	16.3		—		—
	209.8		21.3		—
Other acquisitions	6.3		16.0		30.2
Total acquisition-related and integration costs	$	216.1	$	37.3	$	30.2

Other acquisitions includes costs in connection with the acquisitions of SmartEquip Inc.("SmartEquip") and Rouse Services LLC ("Rouse"), as well as costs incurred with the proposed Euro Auctions acquisition.

During the year ended December 31, 2023, the Company incurred $1.7 million (2022: $5.1 million; 2021: $10.3 million) of share-based continuing employment costs for the acquisition of Rouse and $1.3 million (2022: $2.4 million: 2021: $0.4 million) for the acquisition of SmartEquip. In addition, the Company also 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 Expenses

Year ended December 31,	2023		2022		2021
Depreciation	$	86.2	$	31.4	$	32.4
Amortization	266.0		65.8		55.5
	$	352.2	$	97.2	$	87.9