XML 42 R30.htm IDEA: XBRL DOCUMENT v3.23.1
Segment Reporting (Tables)
 3 Months Ended
Mar. 31, 2023
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 operating profit to consolidated loss before income taxes for the three months ended March 31, 2022 and 2023.
Three Months Ended March 31,
(In millions)20222023
Revenue by segment:
Public Cloud$417.0 $444.6 
Private Cloud358.5 314.1 
    Total consolidated revenue$775.5 $758.7 
Segment operating profit:
Public Cloud$34.5 $24.5 
Private Cloud136.8 92.9 
Total consolidated segment operating profit171.3 117.4 
Corporate functions(59.2)(66.9)
Share-based compensation expense(17.0)(15.2)
Special bonuses and other compensation expense (1)
(3.4)(2.2)
Transaction-related adjustments, net (2)
(5.3)(1.3)
Restructuring and transformation expenses (3)
(23.3)(25.6)
Hosted Exchange incident expenses— (3.2)
Amortization of intangible assets (4)
(42.2)(40.9)
Impairment of goodwill— (543.1)
Interest expense(50.1)(56.9)
Gain (loss) on investments, net(0.1)0.1 
Gain on debt extinguishment— 12.8 
Other income (expense), net(3.6)2.1 
Total consolidated loss before income taxes$(32.9)$(622.9)
(1)Includes expense related to retention bonuses, mainly relating to restructuring and integration projects, and the related payroll tax, senior executive signing bonuses and relocation costs, and payroll taxes associated with the exercise of stock options and vesting of restricted stock.
(2)Includes legal, professional, accounting and other advisory fees related to acquisitions, certain one-time costs related to being a newly public company as a result of the IPO in August 2020, integration costs of acquired businesses, purchase accounting adjustments, payroll costs for employees that dedicate significant time to supporting these projects and exploratory acquisition and divestiture costs and expenses related to financing activities.
(3)
Includes consulting and advisory fees related to business transformation and optimization activities, payroll costs for employees that dedicate significant time to these projects, as well as associated severance, facility closure costs, and lease termination expenses. This amount also includes total charges of $3.2 million for the three months ended March 31, 2022 related to 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.
(4)All of our intangible assets are attributable to acquisitions, including the Rackspace Acquisition in 2016.
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 operating profit to consolidated loss before income taxes for the three months ended March 31, 2022 and 2023.
Three Months Ended March 31,
(In millions)20222023
Revenue by segment:
Public Cloud$417.0 $444.6 
Private Cloud358.5 314.1 
    Total consolidated revenue$775.5 $758.7 
Segment operating profit:
Public Cloud$34.5 $24.5 
Private Cloud136.8 92.9 
Total consolidated segment operating profit171.3 117.4 
Corporate functions(59.2)(66.9)
Share-based compensation expense(17.0)(15.2)
Special bonuses and other compensation expense (1)
(3.4)(2.2)
Transaction-related adjustments, net (2)
(5.3)(1.3)
Restructuring and transformation expenses (3)
(23.3)(25.6)
Hosted Exchange incident expenses— (3.2)
Amortization of intangible assets (4)
(42.2)(40.9)
Impairment of goodwill— (543.1)
Interest expense(50.1)(56.9)
Gain (loss) on investments, net(0.1)0.1 
Gain on debt extinguishment— 12.8 
Other income (expense), net(3.6)2.1 
Total consolidated loss before income taxes$(32.9)$(622.9)
(1)Includes expense related to retention bonuses, mainly relating to restructuring and integration projects, and the related payroll tax, senior executive signing bonuses and relocation costs, and payroll taxes associated with the exercise of stock options and vesting of restricted stock.
(2)Includes legal, professional, accounting and other advisory fees related to acquisitions, certain one-time costs related to being a newly public company as a result of the IPO in August 2020, integration costs of acquired businesses, purchase accounting adjustments, payroll costs for employees that dedicate significant time to supporting these projects and exploratory acquisition and divestiture costs and expenses related to financing activities.
(3)
Includes consulting and advisory fees related to business transformation and optimization activities, payroll costs for employees that dedicate significant time to these projects, as well as associated severance, facility closure costs, and lease termination expenses. This amount also includes total charges of $3.2 million for the three months ended March 31, 2022 related to 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.
(4)All of our intangible assets are attributable to acquisitions, including the Rackspace Acquisition in 2016.
Schedule of Property, Equipment, and Software, net
Property, equipment and software, net, consisted of the following: 
(In millions)December 31,
2022		March 31,
2023
Computers and equipment$1,131.2 $1,167.5 
Software464.2 458.8 
Furniture and fixtures15.8 16.4 
Buildings and leasehold improvements 402.2 407.6 
Property, equipment and software, at cost2,013.4 2,050.3 
Less: Accumulated depreciation (1,400.3)(1,414.3)
Work in process15.2 15.1 
Property, equipment and software, net$628.3 $651.1 
The table below presents depreciation expense included in segment operating profit above for the three months ended March 31, 2022 and 2023.

Three Months Ended March 31,
(In millions)20222023
Public Cloud$2.2 $2.1 
Private Cloud45.9 43.9 
Corporate functions11.2 7.8 
    Total depreciation expense$59.3 $53.8