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Sale of Receivables
 9 Months Ended
Sep. 30, 2024
Transfers and Servicing [Abstract]  
Sale of Receivables Sale of Receivables
On September 29, 2023, Rackspace US, Inc. and Rackspace Receivables II, LLC, a bankruptcy-remote special purpose vehicle (“SPV”), each an indirect subsidiary of the company, entered into an accounts receivable purchase agreement with PNC Bank, National Association (“PNC”) and other parties thereto. On February 12, 2024, the accounts receivable purchase agreement was amended to include certain international subsidiaries of the company as parties to the agreement and Rackspace Receivables Canada Limited, a Canadian indirect subsidiary of the company, was established as a SPV.

In connection with accounts receivable sold during the three and nine months ended September 30, 2023, we recorded $4.9 million of expense, consisting of $1.6 million of yield charges and fees and $3.3 million of upfront transaction costs associated with the execution of the agreement, within “Other expense, net” in the Condensed Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 2023.

In connection with accounts receivable sold during the three and nine months ended September 30, 2024, we recorded $5.5 million and $16.4 million of expense, respectively, in “Other expense, net” in the Condensed Consolidated Statements of Comprehensive Loss. This expense consisted of $5.3 million and $15.6 million of yield charges and fees for the three and nine months ended September 30, 2024, respectively, and $0.2 million and $0.8 million of upfront transaction costs associated with the execution of the agreement for the three and nine months ended September 30, 2024, respectively.

The outstanding portfolio of sold accounts receivable derecognized from our Condensed Consolidated Balance Sheet as of December 31, 2023 and September 30, 2024 was $223.8 million and $218.8 million, respectively. The SPVs hold unsold accounts receivable of $142.0 million as of September 30, 2024 that are pledged as collateral to PNC.