Acquisitions, Litigation, and Other Charges

12 Months Ended

Dec. 31, 2020

Acquisition, Litigation and Other Special Charges [Abstract]

Acquisitions, Litigation, and Other Charges

Acquisition, Litigation and Other Charges

The components of the charges included in “Acquisition, litigation and other” in our Consolidated Statements of Operations are as follows (in thousands):

	Years Ended December 31,
Acquisition, litigation and other	2020		2019		2018
Acquisition related costs	$	26,466	$	24,284	$	671
Litigation	310		4,553		—
Severance, equity award modifications and acceleration	1,089		9,789		2,053
Non-offering related equity issuance expenses	—		1,356		1,813
Terminated site operations costs	124		632		(1,804)
Non-recurring public company implementation costs	—		—		1,202
Cyber incident related costs	7,908		—		—
Other	409		—		—
Total acquisition, litigation and other	$	36,306	$	40,614	$	3,935

Acquisition related costs include costs associated with business transactions, whether consummated or not, such as advisory, legal, accounting, valuation and other professional or consulting fees. We also include integration costs pre- and post-acquisition that reflect work being performed to facilitate merger and acquisition integration, such as work associated with information systems and other projects including spending to support future

acquisitions, and primarily consist of professional services. We consider acquisition related costs to be corporate costs regardless of the segment or segments involved in the transaction. Refer to Note 3 for further information regarding acquisitions completed in the current year.

Litigation costs consist of expenses incurred in order to defend the Company from litigation charges outside of the normal course of business as well as related settlements not in the normal course of business. Litigation costs incurred in connection with matters arising from the ordinary course of business are expensed as a component of “Selling, general and administrative expense” on the Consolidated Statements of Operations.

Severance costs represent certain contractual and negotiated severance and separation costs from exited former executives, reduction in headcount due to synergies achieved through acquisitions or operational efficiencies and reduction in workforce costs associated with exiting or selling non-strategic warehouses or businesses. Equity acceleration and modification costs represent the unrecognized expense for stock awards that vest and convert to common shares in advance of the original negotiated vesting date and any other equity award changes resulting in accounting for the award as a modification. Refer to Note 15 for further details of all equity modifications and equity acceleration.

Non-offering related equity issuance expense consists of non-registration statement related legal fees associated with the selling shareholders’ secondary public offering completed during the first quarter of 2019, which consisted solely of shares sold by YF ART Holdings and Goldman Sachs and affiliates. The Company received no proceeds from the secondary offering.

Terminated site operations costs relates to repair expenses incurred to return leased sites to their original physical state at lease inception in connection with the termination of the applicable underlying lease. Additionally, terminated site operations costs include those incurred to wind down operations at recently sold facilities. These terminations were part of our strategic efforts to exit or sell non-strategic warehouses as opposed to ordinary course lease expirations. Repair and maintenance expenses associated with our ordinary course operations are reflected as operating expenses on our Condensed Consolidated Statement of Operations.

Non-recurring public company implementation costs for the year ended December 31, 2018 represent costs associated with the implementation of financial reporting systems and processes needed to convert the organization to a public company.

Cyber incident related costs include third-party fees incurred in connection with the cyber incident that occurred in November 2020, as well as any incremental costs, internal and external, incurred to restore operations at our facilities and damage claims.

Other costs relate to additional superannuation pension costs related to prior years upon review by the Australian Tax Office