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v3.22.1

Segment Reporting (Tables) | 3 Months Ended
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Mar. 31, 2022
Segment Reporting [Abstract] |
Schedule of Reconciliation of Revenue from Segments to Consolidated | The table below presents a reconciliation of revenue by reportable segment to consolidated revenue and a reconciliation of consolidated segment gross profit to consolidated loss before income taxes for the three months ended March 31, 2021 and 2022.
| Three Months Ended March 31, |  |
(In millions) | 2021 |  | 2022 |  |  |  |
Revenue by segment: |  |  |  |  |  |  |
Multicloud Services | $ | 579.6 |  |  | $ | 640.1 |  |  |  |  |
Apps & Cross Platform | 97.3 |  |  | 94.8 |  |  |  |  |
OpenStack Public Cloud | 49.0 |  |  | 40.6 |  |  |  |  |
Total consolidated revenue | $ | 725.9 |  |  | $ | 775.5 |  |  |  |  |
Segment gross profit: |  |  |  |  |  |  |
Multicloud Services | $ | 196.4 |  |  | $ | 188.2 |  |  |  |  |
Apps & Cross Platform | 34.9 |  |  | 34.5 |  |  |  |  |
OpenStack Public Cloud | 18.6 |  |  | 12.9 |  |  |  |  |
Total consolidated segment gross profit | 249.9 |  |  | 235.6 |  |  |  |  |
Less: |  |  |  |  |  |  |
Share-based compensation expense | (4.9) |  |  | (2.8) |  |  |  |  |
Other compensation expense (1) | (1.3) |  |  | (0.8) |  |  |  |  |
Purchase accounting impact on expense (2) | (1.2) |  |  | (0.7) |  |  |  |  |
Restructuring and transformation expenses (3) | (7.2) |  |  | (5.3) |  |  |  |  |
Selling, general and administrative expenses | (231.0) |  |  | (205.1) |  |  |  |  |
Gain on sale of land | 19.9 |  |  | — |  |  |  |  |
Interest expense | (52.6) |  |  | (50.1) |  |  |  |  |
Loss on investments, net | (3.7) |  |  | (0.1) |  |  |  |  |
Debt modification and extinguishment costs | (37.0) |  |  | — |  |  |  |  |
Other expense, net | (1.8) |  |  | (3.6) |  |  |  |  |
Total consolidated loss before income taxes | $ | (70.9) |  |  | $ | (32.9) |  |  |  |  |
(1) Adjustments for retention bonuses, mainly in connection with restructuring and transformation projects, and the related payroll tax, and payroll taxes associated with the exercise of stock options and vesting of restricted stock. (2) Adjustment for the impact of purchase accounting from the Rackspace Acquisition on expenses. (3) Adjustment for the impact of business transformation and optimization activities, as well as associated severance, facility closure costs and lease termination expenses. This amount also includes certain costs associated with the July 2021 Restructuring Plan which are not accounted for as exit and disposal costs under ASC 420, including one-time offshore build out costs.
Schedule of Reconciliation of Gross Profit from Segments to Consolidated | The table below presents a reconciliation of revenue by reportable segment to consolidated revenue and a reconciliation of consolidated segment gross profit to consolidated loss before income taxes for the three months ended March 31, 2021 and 2022.
| Three Months Ended March 31, |  |
(In millions) | 2021 |  | 2022 |  |  |  |
Revenue by segment: |  |  |  |  |  |  |
Multicloud Services | $ | 579.6 |  |  | $ | 640.1 |  |  |  |  |
Apps & Cross Platform | 97.3 |  |  | 94.8 |  |  |  |  |
OpenStack Public Cloud | 49.0 |  |  | 40.6 |  |  |  |  |
Total consolidated revenue | $ | 725.9 |  |  | $ | 775.5 |  |  |  |  |
Segment gross profit: |  |  |  |  |  |  |
Multicloud Services | $ | 196.4 |  |  | $ | 188.2 |  |  |  |  |
Apps & Cross Platform | 34.9 |  |  | 34.5 |  |  |  |  |
OpenStack Public Cloud | 18.6 |  |  | 12.9 |  |  |  |  |
Total consolidated segment gross profit | 249.9 |  |  | 235.6 |  |  |  |  |
Less: |  |  |  |  |  |  |
Share-based compensation expense | (4.9) |  |  | (2.8) |  |  |  |  |
Other compensation expense (1) | (1.3) |  |  | (0.8) |  |  |  |  |
Purchase accounting impact on expense (2) | (1.2) |  |  | (0.7) |  |  |  |  |
Restructuring and transformation expenses (3) | (7.2) |  |  | (5.3) |  |  |  |  |
Selling, general and administrative expenses | (231.0) |  |  | (205.1) |  |  |  |  |
Gain on sale of land | 19.9 |  |  | — |  |  |  |  |
Interest expense | (52.6) |  |  | (50.1) |  |  |  |  |
Loss on investments, net | (3.7) |  |  | (0.1) |  |  |  |  |
Debt modification and extinguishment costs | (37.0) |  |  | — |  |  |  |  |
Other expense, net | (1.8) |  |  | (3.6) |  |  |  |  |
Total consolidated loss before income taxes | $ | (70.9) |  |  | $ | (32.9) |  |  |  |  |
(1) Adjustments for retention bonuses, mainly in connection with restructuring and transformation projects, and the related payroll tax, and payroll taxes associated with the exercise of stock options and vesting of restricted stock. (2) Adjustment for the impact of purchase accounting from the Rackspace Acquisition on expenses. (3) Adjustment for the impact of business transformation and optimization activities, as well as associated severance, facility closure costs and lease termination expenses. This amount also includes certain costs associated with the July 2021 Restructuring Plan which are not accounted for as exit and disposal costs under ASC 420, including one-time offshore build out costs.

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