Property, Equipment and Software, net

9 Months Ended

Sep. 30, 2023

Property, Plant and Equipment [Abstract]

Property, equipment and software, net, consisted of the following:


(In millions)	December 31, 2022		September 30, 2023
Computers and equipment	$	1,131.2	$	1,156.0
Software	464.2		458.9
Furniture and fixtures	15.8		15.8
Buildings and leasehold improvements	402.2		406.3

Property, equipment and software, at cost	2,013.4		2,037.0
Less: Accumulated depreciation	(1,400.3)		(1,437.4)
Work in process	15.2		14.8
Property, equipment and software, net	$	628.3	$	614.4

For the three and nine months ended September 30, 2022, we recognized property, equipment and software impairment charges of $15.3 million related to the OpenStack Public Cloud long-lived assets. See Note 1, "Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies," for discussion of the long-lived asset impairment charges.

In October 2022, we announced our intention to sell our current corporate headquarters facility located in Windcrest, Texas and relocate our corporate headquarters to leased office space in San Antonio, Texas. As of December 31, 2022, this property met the criteria to be classified as held for sale under GAAP. The property's previous carrying amount of $82.7 million was written down to its estimated fair value, less estimated cost to sell, of $12.1 million, resulting in a $70.6 million impairment charge included in "Impairment of assets, net" in the fourth quarter of 2022. The property's estimated fair value, less estimated cost to sell, of $12.1 million was recorded in "Other current assets" in the Condensed Consolidated Balance Sheets as of December 31, 2022.

In July 2023, we entered into a purchase and sale agreement with a potential buyer of the property for $21.5 million. Under held for sale accounting, the carrying amount of the property held for sale should be remeasured each reporting period for changes in fair value less cost to sell. As such, we increased the property’s estimated fair value, less estimated cost to sell, to $20.7 million as of September 30, 2023, resulting in an $8.6 million gain, which is included in "Impairment of assets, net" in our Condensed Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 2023. We are currently in negotiations with certain local governments and other parties to terminate the Master Economic Incentives Agreement associated with the property which could require us to pay a termination fee upon completion of the sale.