Condensed Financial Information of Registrant (Parent Company Only)

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Financial Information of Registrant (Parent Company Only)

RACKSPACE TECHNOLOGY, INC. (Parent Company Only)

CONDENSED BALANCE SHEETS


(In millions, except per share data)	December 31, 2020		December 31, 2021
ASSETS
Investment in subsidiaries of Parent	$	1,383.7	$	1,327.4
Total assets	$	1,383.7	$	1,327.4
LIABILITIES AND STOCKHOLDERS' EQUITY
Stockholders' equity:
Preferred stock, $0.01 par value per share: 5.0 shares authorized; no shares issued or outstanding	—		—
Common stock, $0.01 par value per share: 1,495.0 shares authorized; 201.8 and 211.2 shares issued and outstanding, respectively	2.0		2.1
Additional paid-in capital	2,363.6		2,500.0
Accumulated other comprehensive income (loss)	(18.6)		6.9
Accumulated deficit	(963.3)		(1,181.6)
Total stockholders' equity	1,383.7		1,327.4
Total liabilities and stockholders' equity	$	1,383.7	$	1,327.4

The accompanying note is an integral part of these condensed financial statements.

RACKSPACE TECHNOLOGY, INC. (Parent Company Only)

CONDENSED STATEMENTS OF COMPREHENSIVE LOSS


	Year Ended December 31,
(In millions, except per share data)	2019		2020		2021
Equity in net losses in Parent's subsidiaries	$	(102.3)	$	(245.8)	$	(218.3)
Net loss and total comprehensive loss	$	(102.3)	$	(245.8)	$	(218.3)
Net loss per share
Basic and diluted	$	(0.62)	$	(1.37)	$	(1.05)
Weighted average number of shares outstanding:
Basic and diluted	165.3		179.6		208.0

The accompanying note is an integral part of these condensed financial statements.

A condensed statement of cash flows has not been presented as Rackspace Technology did not have any cash as of, or at any point in time during, the years ended December 31, 2019, 2020 and 2021.

NOTE TO CONDENSED FINANCIAL STATEMENTS OF REGISTRANT (Parent Company Only)

Basis of Presentation

These condensed parent company-only financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X, as the restricted net assets of the subsidiaries of Rackspace Technology, Inc. (“Parent”) (as defined in Rule 4-08(e)(3) of Regulation S-X) exceed 25% of the consolidated net assets of the Parent. The ability of Parent’s operating subsidiaries to pay dividends may be restricted due to the terms of the subsidiaries’ First Lien Credit Agreement and the Indentures, as described in Note 7, “Debt” to the audited consolidated financial statements.

These condensed parent company financial statements have been prepared using the same accounting principles and policies described in the notes to the consolidated financial statements, with the only exception being that the parent company accounts for its subsidiaries using the equity method. These condensed financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included elsewhere in this report.