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Restructuring | 9 Months Ended
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Sep. 30, 2021
Restructuring and Related Activities [Abstract] |
Restructuring | Restructuring and Impairment During 2020 and 2019, we engaged a strategic consulting firm to assist us in optimizing our structure and cost base. As a result, we have implemented several cost-saving and margin improvement programs designed to generate substantial incremental cash flow including the Operation, Simplification and Optimization Program, the DRG Acquisition Integration Program, the CPA Global Acquisition Integration and Optimization Program, and most recently the One Clarivate Program. In connection with the CPA Global Acquisition restructuring program, a social plan was entered into in Belgium. Liabilities for non-retirement post-employment benefits that fall under ASC 712 are recognized when the severance liability was determined to be probable of being paid and reasonably estimable. Operation Simplification and Optimization Program During the fourth quarter of 2019, the Company approved restructuring actions designed to streamline our operations by simplifying our organization and focusing on two segments in planned phases. Restructuring charges included actions to reduce operational costs. Components of the pre-tax charges include $888 and $472 in severance costs and $(18) and $1,361 in other costs incurred during the three months ended September 30, 2021 and 2020, respectively. Costs incurred during the nine months ended September 30, 2021 and 2020 include $2,112 and $11,911 in severance costs and $393 and $10,198 in other costs. The Science and IP segments incurred $299 and $571 of the expense, respectively, during the three months ended September 30, 2021 and $873 and $1,631 during the nine months ended September 30, 2021, respectively. The table below summarizes the activity related to the restructuring reserves across each of Clarivate's cost-saving's programs. DRG Acquisition Integration Program During the second quarter of 2020, the Company approved restructuring actions designed to eliminate duplicative costs following the acquisition of DRG in planned phases. Restructuring charges included actions to reduce operational costs. Components of the pre-tax charges include $(43) and $1,210 in severance costs and $0 and $149 in other costs incurred during the three months ended September 30, 2021 and 2020, respectively. Costs incurred during the nine months ended September 30, 2021 and 2020 include $384 and $4,522 in severance costs and $75 and $161 in other costs. The Science and IP segments incurred $(15) and $(28) of the expense, respectively, during the three months ended September 30, 2021 and $162 and $298 during the nine months ended September 30, 2021, respectively. The table below summarizes the activity related to the restructuring reserves across each of Clarivate's cost-saving's programs. CPA Global Acquisition Integration and Optimization Program During the fourth quarter of 2020, the Company approved restructuring actions designed to eliminate duplicative costs following the acquisition of CPA Global and to streamline our operations simplifying our organization and reducing our leasing portfolio. Restructuring charges included actions to reduce operational costs. Components of the pre-tax charges include $$(8,505) and $0 in severance costs and $2,634 and $0 in other costs incurred during the three months ended September 30, 2021 and 2020, respectively. Costs incurred during the nine months ended September 30, 2021 and 2020 include $36,293 and $0 in severance costs and $72,170 and $0 in other costs. The Science and IP segments incurred $1,105 and $1,580 of the expense, respectively, during the three months ended September 30, 2021 and $37,280 and $67,486 during the nine months ended September 30, 2021. The table below summarizes the activity related to the restructuring reserves across each of Clarivate's cost-saving's programs. One Clarivate Program During the second quarter 2021, the Company approved restructuring actions to streamline operations within targeted areas of the Company. The program will result in a reduction in operational costs, with the primary cost savings driver being from a reduction in workforce. Components of the pre-tax charges include $10,071 and $0 in severance costs and $1,731 and $0 in other costs incurred during the three months ended September 30, 2021 and 2020, respectively. Costs incurred during the nine months ended September 30, 2021 and 2020 include $12,115 and $0 in severance costs and $1,731 and $0 in other costs. The Science and IP segments incurred $4,271 and $7,532 of the expense, respectively, during the three months ended September 30, 2021 and $4,978 and $8,869 during the nine months ended September 30, 2021. The table below summarizes the activity related to the restructuring reserves across each of Clarivate's cost-saving's programs.
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.
The following table is a summary of charges incurred related to the Company's restructuring programs for the three and nine months ended September 30, 2021 and 2020.
| 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. |  |

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -URI http://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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