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Product and Geographic Sales Information (Tables) | 9 Months Ended
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Sep. 30, 2022
Segment Reporting [Abstract] |
Schedule of Revenue by reportable segment | The following table presents the Company’s revenues by transaction type based on revenue recognition pattern for the periods presented:
| 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.
The following table summarizes revenue by reportable segment for the periods indicated:
| 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 |
Schedule of Segment Reporting Information, by Segment | Adjusted EBITDA by segment The following table presents segment profitability and a reconciliation to net income for the periods indicated:
| 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. |  |

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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599 + Details
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