Segment Reporting (Tables)

9 Months Ended

Sep. 30, 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 and nine months ended September 30, 2021 and 2022.

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2022		2021		2022
Revenue by segment:
Multicloud Services	$	625.1	$	649.7	$	1,809.8	$	1,923.1
Apps & Cross Platform	92.8		101.5		282.8		296.4
OpenStack Public Cloud	44.6		36.4		139.6		115.8
Total consolidated revenue	$	762.5	$	787.6	$	2,232.2	$	2,335.3
Segment gross profit:
Multicloud Services	$	200.4	$	167.2	$	598.8	$	538.7
Apps & Cross Platform	33.8		34.8		100.7		104.8
OpenStack Public Cloud	16.1		9.7		50.8		35.5
Total consolidated segment gross profit	250.3		211.7		750.3		679.0
Less:
Share-based compensation expense	(4.0)		(2.8)		(13.2)		(9.0)
Other compensation expense (1)	(0.4)		(0.4)		(2.1)		(1.6)
Purchase accounting impact on expense (2)	(1.2)		(0.6)		(3.6)		(2.1)
Restructuring and transformation expenses (3)	(13.0)		(0.8)		(28.9)		(9.2)
Selling, general and administrative expenses	(234.6)		(219.9)		(698.2)		(645.0)
Impairment of goodwill	—		(405.2)		—		(405.2)
Impairment of assets	—		(58.7)		—		(58.7)
Gain on sale of land	—		—		19.9		—
Interest expense	(51.5)		(52.3)		(154.6)		(152.9)
Loss on investments, net	—		(0.1)		(3.6)		(0.4)
Debt modification and extinguishment costs	—		—		(37.5)		—
Other income (expense), net	0.1		(6.0)		(1.1)		(15.5)
Total consolidated loss before income taxes	$	(54.3)	$	(535.1)	$	(172.6)	$	(620.6)

(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 and nine months ended September 30, 2021 and 2022.

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2022		2021		2022
Revenue by segment:
Multicloud Services	$	625.1	$	649.7	$	1,809.8	$	1,923.1
Apps & Cross Platform	92.8		101.5		282.8		296.4
OpenStack Public Cloud	44.6		36.4		139.6		115.8
Total consolidated revenue	$	762.5	$	787.6	$	2,232.2	$	2,335.3
Segment gross profit:
Multicloud Services	$	200.4	$	167.2	$	598.8	$	538.7
Apps & Cross Platform	33.8		34.8		100.7		104.8
OpenStack Public Cloud	16.1		9.7		50.8		35.5
Total consolidated segment gross profit	250.3		211.7		750.3		679.0
Less:
Share-based compensation expense	(4.0)		(2.8)		(13.2)		(9.0)
Other compensation expense (1)	(0.4)		(0.4)		(2.1)		(1.6)
Purchase accounting impact on expense (2)	(1.2)		(0.6)		(3.6)		(2.1)
Restructuring and transformation expenses (3)	(13.0)		(0.8)		(28.9)		(9.2)
Selling, general and administrative expenses	(234.6)		(219.9)		(698.2)		(645.0)
Impairment of goodwill	—		(405.2)		—		(405.2)
Impairment of assets	—		(58.7)		—		(58.7)
Gain on sale of land	—		—		19.9		—
Interest expense	(51.5)		(52.3)		(154.6)		(152.9)
Loss on investments, net	—		(0.1)		(3.6)		(0.4)
Debt modification and extinguishment costs	—		—		(37.5)		—
Other income (expense), net	0.1		(6.0)		(1.1)		(15.5)
Total consolidated loss before income taxes	$	(54.3)	$	(535.1)	$	(172.6)	$	(620.6)

(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.