Rackspace Technology (RXT) 10-Q9 Aug 232023 Q2 Quarterly reportFinancial data

Company Profile

Cover Page

Cover Page - shares	6 Months Ended
Cover Page - shares	Jun. 30, 2023	Aug. 03, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-39420
Entity Registrant Name	RACKSPACE TECHNOLOGY, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-3369925
Entity Address, Address Line One	1 Fanatical Place
Entity Address, Address Line Two	City of Windcrest
Entity Address, City or Town	San Antonio
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78218
City Area Code	800
Local Phone Number	961-4454
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	RXT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		215,891,394
Entity Central Index Key	0001810019
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 159.9	$ 228.4
Accounts receivable, net of allowance for credit losses and accrued customer credits of $24.6 and $22.9, respectively	543.8	622.2
Prepaid expenses	90	97.3
Other current assets	119.8	125.3
Total current assets	913.5	1,073.2
Property, equipment and software, net	641.4	628.3
Goodwill, net	1,617.5	2,155.1
Intangible assets, net	1,155	1,236
Operating right-of-use assets	137.8	138
Other non-current assets	199.3	226.1
Total assets	4,664.5	5,456.7
Current liabilities:
Accounts payable and accrued expenses	397	447.3
Accrued compensation and benefits	72.4	95.3
Deferred revenue	73.5	80.9
Debt	23	23
Accrued interest	22	36.3
Operating lease liabilities	67.5	60
Finance lease liabilities	67.1	61.7
Financing obligations	17.8	16.7
Other current liabilities	36	35.3
Total current liabilities	776.3	856.5
Non-current liabilities:
Debt	3,174.4	3,295.4
Operating lease liabilities	88.6	84.8
Finance lease liabilities	332.7	310.5
Financing obligations	47.9	47.6
Deferred income taxes	113	126.7
Other non-current liabilities	99.7	105.7
Total liabilities	4,632.6	4,827.2
Commitments and Contingencies (Note 7)
Stockholders' equity:
Preferred stock, $0.01 par value per share: 5.0 shares authorized; no shares issued or outstanding	0	0
Common stock, $0.01 par value per share: 1,495.0 shares authorized; 215.7 and 218.8 shares issued; 212.6 and 215.7 shares outstanding, respectively	2.2	2.2
Additional paid-in capital	2,607.4	2,573.3
Accumulated other comprehensive income	78.9	71.4
Accumulated deficit	(2,625.6)	(1,986.4)
Treasury stock, at cost; 3.1 shares held	(31)	(31)
Total stockholders' equity	31.9	629.5
Total liabilities and stockholders' equity	$ 4,664.5	$ 5,456.7

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts and accrued customer credits	$ 22.9	$ 24.6
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	1,495,000,000	1,495,000,000
Common stock, shares issued (in shares)	218,800,000	215,700,000
Common stock, shares outstanding (in shares)	215,700,000	212,600,000
Treasury stock, at cost (in shares)	3,100,000	3,100,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Revenue	$ 746.3	$ 772.2	$ 1,505	$ 1,547.7
Cost of revenue	(593.2)	(548.2)	(1,182.3)	(1,097.7)
Gross profit	153.1	224	322.7	450
Selling, general and administrative expenses	(216.9)	(220)	(424.4)	(425.1)
Impairment of goodwill	0	0	(543.1)	0
Income (loss) from operations	(63.8)	4	(644.8)	24.9
Other income (expense):
Interest expense	(57.3)	(50.5)	(114.2)	(100.6)
Gain (loss) on investments, net	0.1	(0.2)	0.2	(0.3)
Gain on debt extinguishment	94.9	0	107.7	0
Other income (expense), net	0.2	(5.9)	2.3	(9.5)
Total other income (expense)	37.9	(56.6)	(4)	(110.4)
Loss before income taxes	(25.9)	(52.6)	(648.8)	(85.5)
Benefit (provision) for income taxes	(1.3)	12	9.6	6.4
Net loss	(27.2)	(40.6)	(639.2)	(79.1)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments	2.8	(18.2)	6.2	(22.8)
Unrealized gain on derivative contracts	19.3	11	13.7	53.3
Amount reclassified from accumulated other comprehensive income (loss) to earnings	(6.8)	3.4	(12.4)	7.7
Other comprehensive income (loss)	15.3	(3.8)	7.5	38.2
Comprehensive loss	$ (11.9)	$ (44.4)	$ (631.7)	$ (40.9)
Net loss per share:
Basic (in dollars per share)	$ (0.13)	$ (0.19)	$ (2.98)	$ (0.38)
Diluted (in dollars per share)	$ (0.13)	$ (0.19)	$ (2.98)	$ (0.38)
Weighted average shares outstanding:
Basic (in shares)	215.1	209.5	214.2	210.5
Diluted (in shares)	215.1	209.5	214.2	210.5

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash Flows From Operating Activities
Net loss	$ (639.2)	$ (79.1)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	192.4	199.8
Amortization of operating right-of-use assets	42.5	28.6
Deferred income taxes	(17)	(20)
Share-based compensation expense	34.7	40.1
Impairment of goodwill	543.1	0
Gain on debt extinguishment	(107.7)	0
Unrealized loss on derivative contracts	7.7	9.2
(Gain) loss on investments, net	(0.2)	0.3
Provision for bad debts and accrued customer credits	5	3.5
Amortization of debt issuance costs and debt discount	4	4
Other operating activities	0	(0.5)
Changes in operating assets and liabilities:
Accounts receivable	74.7	(34.3)
Prepaid expenses and other current assets	23.5	12.5
Accounts payable, accrued expenses, and other current liabilities	(101.2)	1.3
Deferred revenue	(9.2)	3.6
Operating lease liabilities	(30.8)	(32.1)
Other non-current assets and liabilities	13.6	11.6
Net cash provided by operating activities	35.9	148.5
Cash Flows From Investing Activities
Purchases of property, equipment and software	(35.5)	(46.4)
Acquisitions, net of cash acquired	0	(7.7)
Other investing activities	0.6	3.5
Net cash used in investing activities	(34.9)	(50.6)
Cash Flows From Financing Activities
Proceeds from employee stock plans	0.8	2.7
Shares of common stock repurchased	0	(31)
Proceeds from borrowings under long-term debt arrangements	50	0
Payments on long-term debt	(67)	(11.5)
Payments on financing component of interest rate swap	(8.6)	(8.5)
Principal payments of finance lease liabilities	(39.1)	(32.3)
Principal payments of financing obligations	(6.9)	(22.9)
Other financing activities	0	(0.9)
Net cash used in financing activities	(70.8)	(104.4)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	1.4	(5.1)
Decrease in cash, cash equivalents, and restricted cash	(68.4)	(11.6)
Cash, cash equivalents, and restricted cash at beginning of period	231.4	275.4
Cash, cash equivalents, and restricted cash at end of period	163	263.8
Supplemental Cash Flow Information
Cash payments for interest, net of amount capitalized	113.6	84.6
Cash payments for income taxes, net of refunds	5.6	9.9
Non-cash Investing and Financing Activities
Acquisition of property, equipment and software by finance leases	63.2	9.3
Acquisition of property, equipment and software by financing obligations	8.5	7.1
Increase in property, equipment and software accrued in liabilities	9	5.3
Non-cash purchases of property, equipment and software	80.7	21.7
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
Cash and cash equivalents	159.9	261.3
Restricted cash included in other non-current assets	3.1	2.5
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$ 163	$ 263.8

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Treasury Stock, at Cost
Beginning balance (in shares) at Dec. 31, 2021		211.2
Beginning balance at Dec. 31, 2021	$ 1,327.4	$ 2.1	$ 2,500	$ 6.9	$ (1,181.6)	$ 0
Beginning balance (in shares) at Dec. 31, 2021						0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options and release of stock awards (in shares)		2
Exercise of stock options and release of stock awards	0.7	$ 0	0.7
Issuance of shares from Employee Stock Purchase Plans (in shares)		0.3
Issuance of shares from Employee Stock Purchase Plan	2.1		2.1
Share-based compensation expense for equity classified awards	40.1		40.1
Net loss	(79.1)				(79.1)
Other comprehensive (loss) income	38.2			38.2
Repurchase of common stock (in shares)						3.1
Repurchase of common stock	(31)					$ (31)
Ending balance (in shares) at Jun. 30, 2022		213.5
Ending balance at Jun. 30, 2022	1,298.4	$ 2.1	2,542.9	45.1	(1,260.7)	$ (31)
Ending balance (in shares) at Jun. 30, 2022						3.1
Beginning balance (in shares) at Mar. 31, 2022		212.8
Beginning balance at Mar. 31, 2022	1,344.3	$ 2.1	2,517.5	48.9	(1,220.1)	$ (4.1)
Beginning balance (in shares) at Mar. 31, 2022						0.4
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options and release of stock awards (in shares)		0.4
Exercise of stock options and release of stock awards	0.2		0.2
Issuance of shares from Employee Stock Purchase Plans (in shares)		0.3
Issuance of shares from Employee Stock Purchase Plan	2.1		2.1
Share-based compensation expense for equity classified awards	23.1		23.1
Net loss	(40.6)				(40.6)
Other comprehensive (loss) income	(3.8)			(3.8)
Repurchase of common stock (in shares)						2.7
Repurchase of common stock	(26.9)					$ (26.9)
Ending balance (in shares) at Jun. 30, 2022		213.5
Ending balance at Jun. 30, 2022	$ 1,298.4	$ 2.1	2,542.9	45.1	(1,260.7)	$ (31)
Ending balance (in shares) at Jun. 30, 2022						3.1
Beginning balance (in shares) at Dec. 31, 2022	212.6	215.7
Beginning balance at Dec. 31, 2022	$ 629.5	$ 2.2	2,573.3	71.4	(1,986.4)	$ (31)
Beginning balance (in shares) at Dec. 31, 2022	3.1					3.1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options and release of stock awards (in shares)		2.7
Exercise of stock options and release of stock awards	$ 0		0
Issuance of shares from Employee Stock Purchase Plans (in shares)		0.4
Issuance of shares from Employee Stock Purchase Plan	0.8		0.8
Share-based compensation expense for equity classified awards	33.3		33.3
Net loss	(639.2)				(639.2)	$ 0
Other comprehensive (loss) income	$ 7.5			7.5
Ending balance (in shares) at Jun. 30, 2023	215.7	218.8
Ending balance at Jun. 30, 2023	$ 31.9	$ 2.2	2,607.4	78.9	(2,625.6)	$ (31)
Ending balance (in shares) at Jun. 30, 2023	3.1					3.1
Beginning balance (in shares) at Mar. 31, 2023		218.1
Beginning balance at Mar. 31, 2023	$ 24.4	$ 2.2	2,588	63.6	(2,598.4)	$ (31)
Beginning balance (in shares) at Mar. 31, 2023						3.1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options and release of stock awards (in shares)		0.3
Exercise of stock options and release of stock awards	0		0
Issuance of shares from Employee Stock Purchase Plans (in shares)		0.4
Issuance of shares from Employee Stock Purchase Plan	0.8		0.8
Share-based compensation expense for equity classified awards	18.6		18.6
Net loss	(27.2)				(27.2)
Other comprehensive (loss) income	$ 15.3			15.3
Ending balance (in shares) at Jun. 30, 2023	215.7	218.8
Ending balance at Jun. 30, 2023	$ 31.9	$ 2.2	$ 2,607.4	$ 78.9	$ (2,625.6)	$ (31)
Ending balance (in shares) at Jun. 30, 2023	3.1					3.1

Company Overview, Basis of Pres

Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies	Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies Nature of Operations and Basis of Presentation Rackspace Technology, Inc. ("Rackspace Technology") is a Delaware corporation controlled by investment funds affiliated with Apollo Global Management, Inc. and its subsidiaries ("Apollo"). Rackspace Technology was formed on July 21, 2016 but had no assets, liabilities or operating results until November 3, 2016 when Rackspace Hosting, Inc. (now named Rackspace Technology Global, Inc., or "Rackspace Technology Global"), a global provider of modern information technology-as-a-service, was acquired by Inception Parent, Inc., a wholly-owned entity indirectly owned by Rackspace Technology (the "Rackspace Acquisition"). Rackspace Technology Global commenced operations in 1998 as a limited partnership, and was incorporated in Delaware in March 2000. Rackspace Technology serves as the holding company for Rackspace Technology Global and does not engage in any material business or operations other than those related to its indirect ownership of the capital stock of Rackspace Technology Global and its subsidiaries or business or operations otherwise customarily undertaken by a holding company. For ease of reference, the terms "we," "our company," "the company," "us," or "our" as used in this report refer to Rackspace Technology and its consolidated subsidiaries. Effective on January 1, 2023, we reorganized around a two-business unit operating model, Public Cloud and Private Cloud. This two-business unit operating model ensures increased focus, delivery, and service quality for our customers. Beginning in 2023, we changed our segment reporting to reflect this reorganization under two reportable segments: Public Cloud and Private Cloud. See Note 14, "Segment Reporting" for more information. The unaudited condensed consolidated financial statements include the accounts of Rackspace Technology, Inc. and our wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. Unaudited Interim Financial Information The unaudited condensed consolidated financial statements as of June 30, 2023, and for the three and six months ended June 30, 2022 and 2023, have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information. Accordingly, certain financial information and disclosures required for financial statements prepared under GAAP have been omitted in accordance with the Securities and Exchange Commission ("SEC") disclosure rules and regulations that permit reduced disclosure for interim periods. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the SEC on March 16, 2023 ("Annual Report"). The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements included in our Annual Report and, in the opinion of management, reflect all adjustments, which include normal recurring adjustments, necessary for a fair statement of our financial position as of June 30, 2023, our results of operations and stockholders' equity for the three and six months ended June 30, 2022 and 2023, and our cash flows for the six months ended June 30, 2022 and 2023. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2023, or for any other interim period, or for any other future year. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expenses, and related disclosures of contingent assets and liabilities in the condensed consolidated financial statements and accompanying notes. On an ongoing basis, we evaluate our estimates, including those related to the allowance for credit losses, useful lives of property, equipment and software, software capitalization, incremental borrowing rates for lease liability measurement, fair values of intangible assets and reporting units, useful lives of intangible assets, share-based compensation, contingencies, and income taxes, among others. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from our estimates. Liquidity Overview We are a highly leveraged company. As of June 30, 2023, we had $3,183.5 million aggregate principal amount outstanding under the first lien term loan facility (the "Term Loan Facility"), 5.375% Senior Notes due 2028 (the "5.375% Senior Notes"), and 3.50% Senior Secured Notes due 2028 (the "3.50% Senior Secured Notes"). We primarily finance our operations and capital expenditures with internally-generated cash from operations and hardware leases, and if necessary, borrowings under a revolving credit facility (the "Revolving Credit Facility"). As of June 30, 2023, the Revolving Credit Facility provided for up to $375.0 million of borrowings, $50.0 million of which was drawn as of June 30, 2023. Our primary uses of cash are working capital requirements, debt service requirements and capital expenditures. Based on our current level of operations and available cash and cash equivalents of $159.9 million as of June 30, 2023, we believe our sources will provide sufficient liquidity over at least the next twelve months. We cannot provide assurance, however, that our business will generate sufficient cash flows from operations or that future borrowings will be available to us under the Revolving Credit Facility or from other sources in an amount sufficient to enable us to pay our indebtedness or to fund our other liquidity needs. Our ability to do so depends on prevailing economic conditions and other factors, many of which are beyond our control. Significant Accounting Policies and Estimates Our Annual Report includes an additional discussion of the significant accounting policies and estimates used in the preparation of our consolidated financial statements. There were no material changes to our significant accounting policies and estimates during the six months ended June 30, 2023. Goodwill, Indefinite-Lived Intangible Assets and Long-Lived Assets Goodwill represents the excess of the purchase price over the fair value of identifiable net assets of businesses acquired. Our indefinite-lived intangible asset consists of our Rackspace trade name, which was recorded at fair value on our balance sheet at the date of the Rackspace Acquisition. Goodwill and indefinite-lived intangible assets are not amortized but are subject to impairment testing on an annual basis as of October 1st or more frequently if events or circumstances indicate a potential impairment. These events or circumstances could include a significant change in the business climate, regulatory environment, established business plans, operating performance indicators or competition. Potential impairment indicators may also include, but are not limited to, (i) significant changes to estimates and assumptions used in the most recent annual or interim impairment testing, (ii) downward revisions to internal forecasts, and the magnitude thereof, (iii) declines in our market capitalization below our book value, and the magnitude and duration of those declines, (iv) a reorganization resulting in a change to our operating segments, and (v) other macroeconomic factors, such as increases in interest rates that may affect the weighted average cost of capital, volatility in the equity and debt markets, or fluctuations in foreign currency exchange rates that may negatively impact our reported results of operations. On January 1, 2023, as a result of the reorganization of our business around a two-business unit operating model, we changed our reportable segments to Private Cloud and Public Cloud. Our prior Multicloud Services segment has been separated into its public and private cloud components and the offerings previously reported in our Apps & Cross Platform segment have been reassigned to either the Public Cloud or Private Cloud segment based on the nature of the offering. Our prior OpenStack Public Cloud segment is included in Private Cloud. As a result of the segment change, we allocated the goodwill of our former Multicloud Services and Apps & Cross Platform reporting units to the Public Cloud and Private Cloud reporting units based on their relative fair value. OpenStack Public Cloud remains a separate reporting unit for goodwill purposes. Due to the change in our segment reporting and the allocation of goodwill, we completed a quantitative goodwill impairment analysis both prior and subsequent to the aforementioned change. The results of the quantitative goodwill impairment analysis performed as of December 31, 2022 prior to the change indicated an impairment within our former Apps & Cross Platform reporting unit, and we recorded a non-cash impairment charge of $129.3 million in the fourth quarter of 2022 as described in our Annual Report. We reassigned goodwill to the updated reporting units using a relative fair value approach. The results of the quantitative goodwill impairment analysis performed as of January 1, 2023 subsequent to the reorganization indicated an impairment within our Private Cloud reporting unit, and we recorded a non-cash impairment charge of $270.8 million in the first quarter of 2023. During the first quarter of 2023, we experienced a sustained decline in our stock price resulting in our market capitalization being less than the carrying value of our combined reporting units. As of March 31, 2023, we assessed several events and circumstances that could affect the significant inputs used to determine the fair value of our reporting units, including the significance of the amount, if any, of excess carrying value over fair value, consistency of operating margins and cash flows, budgeted-to-actual performance for the first three months of the year, overall change in economic climate, changes in the industry and competitive environment, and earnings quality and sustainability. After considering all available evidence in our evaluation of goodwill impairment indicators, we determined it appropriate to perform an interim quantitative assessment of our reporting units as of March 31, 2023. Goodwill is tested for impairment at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment (referred to as a component). We allocate goodwill to reporting units based on the reporting unit expected to benefit from the business combination. Assets and liabilities are assigned to each of our reporting units if they are employed by a reporting unit and are considered in the determination of the reporting unit fair value. Certain assets and liabilities are shared by multiple reporting units, and thus, are allocated to each reporting unit based on the relative size of a reporting unit, primarily based on revenue. We have two reporting units with goodwill: Public Cloud and Private Cloud. Goodwill allocated to our third reporting unit, OpenStack Public Cloud, was fully impaired during the fourth quarter of 2021. For the interim quantitative goodwill impairment analyses performed as of January 1, 2023 and March 31, 2023, we compare the fair values of each of our reporting units to their respective carrying amounts. The fair values of each of our reporting units were derived using the income approach, specifically the discounted cash flow method. The discounted cash flow models reflect our assumptions regarding revenue growth rates, projected gross profit margins, risk-adjusted discount rates, terminal period growth rates, economic and market trends and other expectations about the anticipated operating results of our reporting units. As part of the goodwill impairment test, we also consider our market capitalization in assessing the reasonableness of the combined fair values estimated for our reporting units, including OpenStack Public Cloud. Goodwill impairment is measured as the excess of a reporting unit's carrying amount over its fair value, not to exceed the carrying amount of goodwill for that reporting unit. The results of our quantitative goodwill impairment analyses as of January 1, 2023 and March 31, 2023 indicated an impairment of goodwill within our Private Cloud reporting unit, and we recorded non-cash impairment charges of $270.8 million and $272.3 million, respectively, within "Impairment of goodwill" in our Condensed Consolidated Statements of Comprehensive Loss in the first quarter of 2023. As of March 31, 2023, the Public Cloud reporting unit was determined to have a fair value that exceeded its carrying value by approximately 14%. See Note 5, "Goodwill and Intangible Assets" for more information. Our indefinite-lived intangible asset is tested for impairment at the consolidated level. In evaluating the recoverability of the Rackspace trade name, we compare the fair value of the asset to its carrying amount to determine potential impairment. Our estimate of the fair value of the Rackspace trade name is derived using the income approach, specifically the relief-from-royalty method. We performed a quantitative assessment of our indefinite-lived intangible asset prior to testing our goodwill for impairment as of January 1, 2023 and March 31, 2023 which did not indicate any impairment of the Rackspace trade name. The fair value determination of our reporting units and our indefinite-lived intangible asset is judgmental in nature and requires the use of significant estimates and assumptions that are sensitive to changes. Assumptions include estimation of the royalty rate, estimation of future revenue and projected margins, which are dependent on internal cash flow forecasts, estimation of the terminal growth rates and capital spending, and determination of discount rates. As a result, there can be no assurance that the estimates and assumptions made for purposes of the quantitative goodwill and indefinite-lived intangible impairment tests will prove to be an accurate prediction of future results. Examples of events or circumstances that could reasonably be expected to negatively affect the underlying key assumptions and ultimately impact the estimated fair value of our reporting units may include such items as: (i) volatility in the equity and debt markets or other macroeconomic factors, (ii) an increase in the weighted-average cost of capital due to further increases in interest rates, (iii) decrease in future cash flows due to lower than expected sales, or (iv) fluctuations in foreign currency exchange rates that may negatively impact our reported results of operations. Accordingly, if our current cash flow assumptions are not realized, we experience further sustained declines in our stock price or market capitalization, or increases in costs of capital, it is possible that an additional impairment charge may be recorded in the future, which could be material. Long-lived assets, including operating and finance lease assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets is measured at the asset group level. If the carrying amount of an asset group exceeds its estimated undiscounted future cash flows, then an impairment charge is recognized in the amount that an asset group's carrying amount exceeds its fair value. We performed recoverability tests of our long-lived assets in conjunction with the goodwill impairment analyses as of January 1, 2023 and March 31, 2023 which did not result in any impairment charges. The fair value of our non-financial assets and liabilities, which include goodwill, intangible assets and property, plant and equipment, are measured on a non-recurring basis. The fair value of our reporting units, indefinite-lived intangible assets and long-lived assets are classified as Level 3 within the fair value hierarchy due to the significant unobservable inputs developed using company-specific information. As of June 30, 2023, we determined that there were no indicators of impairment that more likely than not reduced the fair value of our reporting units or our indefinite-lived intangible asset to less than their respective carrying values. Recent Accounting Pronouncements Reference Rate Reform The United Kingdom's Financial Conduct Authority, which regulates the London Interbank Offered Rate ("LIBOR"), announced that it will not compel panel banks to contribute to the overnight 1, 3, 6 and 12 months U.S. dollar LIBOR tenors after June 30, 2023 and all other tenors after December 31, 2021. U.S. dollar LIBOR may be replaced by the Secured Overnight Financing Rate ("SOFR") or other benchmark rates over the next several years. In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-04, Reference Rate Reform (ASC 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting containing practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (ASC 848) - Deferral of the Sunset Date of Topic 848 , which extended the date to apply the practical expedients outlined in ASU No. 2020-04 from December 31, 2022 to December 31, 2024. The guidance in these ASUs is optional and may be applied from March 12, 2020 through December 31, 2024 as reference rate reform activities occur. During the three months ended June 30, 2023, we elected to apply certain practical expedients in connection with the execution of amendments to our affected contracts that referenced LIBOR. On April 26, 2023, we executed an amendment to our First Lien Credit Agreement, which governs our Senior Facilities borrowings, to establish Term SOFR as the benchmark rate for determining the applicable interest rate, replacing LIBOR. In addition, effective May 9, 2023, we amended our interest rate swap agreement to change the index from three-month LIBOR to one-month Term SOFR. See Note 6, "Debt" and Note 11, "Derivatives" for more information. We continue to evaluate the impact of the guidance and may apply other elections prior to December 31, 2024, as applicable, as additional changes in the market occur.

Customer Contracts

Customer Contracts	6 Months Ended
Customer Contracts	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Customer Contracts	Customer Contracts The following table presents the balances related to customer contracts: (In millions) Condensed Consolidated Balance Sheets Account December 31, 2022 June 30, 2023 Accounts receivable, net Accounts receivable, net (1) $ 622.2 $ 543.8 Current portion of contract assets Other current assets $ 16.0 $ 11.5 Non-current portion of contract assets Other non-current assets $ 10.4 $ 11.0 Current portion of deferred revenue Deferred revenue $ 80.9 $ 73.5 Non-current portion of deferred revenue Other non-current liabilities $ 8.6 $ 7.1 (1) Allowance for credit losses and accrued customer credits was $24.6 million and $22.9 million as of December 31, 2022 and June 30, 2023, respectively. We identified an immaterial correction in the disclosure of the amount previously reported as recognized in revenue for the three and six months ended June 30, 2022, which were included in deferred revenue as of the beginning of the period and have updated these amounts to $20.4 million and $66.6 million, respectively. Amounts recognized in revenue for the three and six months ended June 30, 2023, which were included in deferred revenue as of the beginning of the period totaled $44.5 million and $55.1 million, respectively. Cost Incurred to Obtain and Fulfill a Contract As of December 31, 2022 and June 30, 2023, the balances of capitalized costs to obtain a contract were $55.8 million and $47.1 million, respectively, and the balances of capitalized costs to fulfill a contract were $17.7 million and $15.7 million, respectively. These capitalized costs are included in "Other non-current assets" on the Condensed Consolidated Balance Sheets. Amortization of capitalized sales commissions and implementation costs was as follows: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2022 2023 2022 2023 Amortization of capitalized sales commissions $ 11.0 $ 9.8 $ 22.3 $ 20.1 Amortization of capitalized implementation costs $ 4.2 $ 3.4 $ 8.6 $ 7.0 Remaining Performance Obligations As of June 30, 2023, the aggregate amount of transaction price allocated to remaining performance obligations was $513.4 million, of which approximately 42% is expected to be recognized as revenue during the remainder of 2023 and the remainder thereafter. These remaining performance obligations primarily relate to our fixed-term arrangements. The aggregate amount of transaction price excludes variable consideration related to our usage-based arrangements for which we recognize revenue based on the right to invoice for the services performed.

Net Loss Per Share

Net Loss Per Share	6 Months Ended
Net Loss Per Share	Jun. 30, 2023
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per Share Basic net loss per share is calculated by dividing net loss attributable to common stockholders by the weighted average shares outstanding during the period. The following table sets forth the computation of basic and diluted net loss per share: Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share data) 2022 2023 2022 2023 Basic and diluted net loss per share: Net loss attributable to common stockholders $ (40.6) $ (27.2) $ (79.1) $ (639.2) Weighted average shares outstanding: Common stock 209.5 215.1 210.5 214.2 Number of shares used in per share computations 209.5 215.1 210.5 214.2 Net loss per share $ (0.19) $ (0.13) $ (0.38) $ (2.98) Potential common share equivalents consist of shares issuable upon the exercise of stock options, vesting of restricted stock or purchase under the Employee Stock Purchase Plan (the "ESPP"), as well as contingent shares associated with our acquisition of Datapipe Parent, Inc. Since we were in a net loss position for all periods presented, basic net loss per share is the same as diluted net loss per share for all periods as the inclusion of all potential common shares outstanding would have been anti-dilutive. We excluded 24.1 million and 42.8 million potential common shares from the computation of dilutive loss per share for the three months ended June 30, 2022 and 2023, respectively, and 24.1 million and 42.8 million potential shares for the six months ended June 30, 2022 and 2023, respectively, because the effect would have been anti-dilutive.

Property, Equipment and Softwar

Property, Equipment and Software, net	6 Months Ended
Property, Equipment and Software, net	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Property, Equipment and Software, net	Property, Equipment and Software, net Property, equipment and software, net, consisted of the following: (In millions) December 31, June 30, Computers and equipment $ 1,131.2 $ 1,170.7 Software 464.2 468.0 Furniture and fixtures 15.8 16.5 Buildings and leasehold improvements 402.2 410.8 Property, equipment and software, at cost 2,013.4 2,066.0 Less: Accumulated depreciation (1,400.3) (1,440.0) Work in process 15.2 15.4 Property, equipment and software, net $ 628.3 $ 641.4

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
Goodwill and Intangible Assets	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets The following table sets forth the changes in the carrying amounts of goodwill by reportable segment. As a result of the January 1, 2023 reorganization, we changed our segment reporting to reflect this reorganization under two reportable segments: Public Cloud and Private Cloud. Accordingly, we reallocated the total consolidated net balance of goodwill as of January 1, 2023 under the new segments, shown below: (In millions) Public Cloud Private Cloud Multicloud Services Apps & Cross Platform OpenStack Public Cloud Total Consolidated Gross goodwill as of December 31, 2022 $ — $ — $ 2,656.6 $ 328.0 $ 52.4 $ 3,037.0 Less: Accumulated impairment charges — — (700.2) (129.3) (52.4) (881.9) Goodwill, net as of December 31, 2022 — — 1,956.4 198.7 — 2,155.1 Reallocation adjustment (1) 594.7 1,560.4 (1,956.4) (198.7) — — Impairment of goodwill — (543.1) — — — (543.1) Foreign currency translation 2.5 3.0 — — — 5.5 Goodwill, net as of June 30, 2023 $ 597.2 $ 1,020.3 $ — $ — $ — $ 1,617.5 Gross goodwill as of June 30, 2023 $ 597.2 $ 1,563.4 $ — $ — $ — $ 2,160.6 Less: Accumulated impairment charges — (543.1) — — — (543.1) Goodwill, net as of June 30, 2023 $ 597.2 $ 1,020.3 $ — $ — $ — $ 1,617.5 (1) Represents the adjustment to reallocate goodwill of the former Multicloud Services and Apps & Cross Platform reportable segments to Public Cloud and Private Cloud reportable segments, using the relative fair value basis, as a result of the January 1, 2023 reorganization. See Note 1, "Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies," for discussion of the goodwill impairment charges recorded during the six months ended June 30, 2023. The following table provides information regarding our intangible assets other than goodwill: December 31, 2022 June 30, 2023 (In millions) Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Customer relationships $ 1,928.5 $ (914.9) $ 1,013.6 $ 1,931.4 $ (995.3) $ 936.1 Other 27.7 (22.3) 5.4 27.8 (25.9) 1.9 Total definite-lived intangible assets 1,956.2 (937.2) 1,019.0 1,959.2 (1,021.2) 938.0 Trade name (indefinite-lived) 217.0 — 217.0 217.0 — 217.0 Total intangible assets other than goodwill $ 2,173.2 $ (937.2) $ 1,236.0 $ 2,176.2 $ (1,021.2) $ 1,155.0

Debt

Debt	6 Months Ended
Debt	Jun. 30, 2023
Debt Disclosure [Abstract]
Debt	Debt Debt consisted of the following: (In millions, except %) December 31, 2022 June 30, 2023 Debt Instrument Maturity Date Interest Rate (1) Amount Interest Rate (1) Amount Term Loan Facility February 15, 2028 7.38% $ 2,259.8 8.00% $ 2,248.3 Revolving Credit Facility August 7, 2025 —% — 8.37% 50.0 3.50% Senior Secured Notes February 15, 2028 3.50% 550.0 3.50% 550.0 5.375% Senior Notes December 1, 2028 5.375% 550.0 5.375% 385.2 Less: unamortized debt issuance costs (30.7) (26.4) Less: unamortized debt discount (10.7) (9.7) Total debt 3,318.4 3,197.4 Less: current portion of debt (23.0) (23.0) Debt, excluding current portion $ 3,295.4 $ 3,174.4 (1) Interest rates are as of each respective balance sheet date. Senior Facilities Our senior secured credit facilities include the Term Loan Facility and the Revolving Credit Facility (together, the "Senior Facilities"). On February 9, 2021, we amended and restated the credit agreement governing our Senior Facilities (the "First Lien Credit Agreement"), which included a new seven-year $2,300.0 million senior secured first lien term loan facility due on February 15, 2028 and our existing $375.0 million Revolving Credit Facility. We used the borrowings under the Term Loan Facility, together with the proceeds from the issuance of the 3.50% Senior Secured Notes described below (together, the "February 2021 Refinancing Transaction"), to repay all borrowings under our prior term loan facility (the "Prior Term Loan Facility"), to pay related fees and expenses and for general corporate purposes. On April 26, 2023, we executed an amendment to our First Lien Credit Agreement to establish Term SOFR as the benchmark rate for determining the applicable interest rate, replacing LIBOR. As a result of the amendment, borrowings under the Senior Facilities bear interest at an annual rate equal to an applicable margin plus, at our option, either (a) Term SOFR equal to the forward-looking term rate, based on the secured overnight financing rate as administered by the Federal Reserve Bank of New York, for the interest period relevant to such borrowing, plus the credit spread adjustment recommended by the Alternative Reference Rates Committee, adjusted for certain additional costs, subject to a 0.75% floor, in the case of the Term Loan Facility, and a 1.00% floor, in the case of the Revolving Credit Facility, or (b) a base rate determined by reference to the highest of (i) the federal funds rate plus 0.50%, (ii) the prime rate of Citibank, N.A. and (iii) adjusted Term SOFR for a one-month tenor plus 1.00%. The credit spread adjustment is 0.11% for an interest period of one-month's duration, 0.26% for an interest period of three-months ' duration, and 0.43% for an interest period of six-months' duration. The applicable margin for the Term Loan Facility is 2.75% for SOFR loans and 1.75% for base rate loans and the applicable margin for the Revolving Credit Facility is 3.00% for SOFR loans and 2.00% for base rate loans. Interest is due at the end of each interest period elected, not exceeding 90 days, for SOFR loans and at the end of every calendar quarter for base rate loans. All other material terms and conditions of the First Lien Credit Agreement were unchanged. In addition to paying interest on the outstanding principal under the Senior Facilities, the Revolving Credit Facility also includes a commitment fee equal to 0.50% per annum in respect of the unused commitments that is due quarterly. This commitment fee is subject to one step-down based on the net first lien leverage ratio. As of June 30, 2023, the interest rate on the Term Loan Facility was 8.00%. We are required to make quarterly principal payments of $5.8 million, which began on June 30, 2021. See Note 11, "Derivatives," for information on interest rate swap agreements we utilize to manage the interest rate risk on the Term Loan Facility. In addition to the quarterly amortization payments discussed above, the Senior Facilities require us to make certain mandatory prepayments, including using (i) a portion of annual excess cash flow, as defined in the First Lien Credit Agreement, to prepay the Term Loan Facility, (ii) net cash proceeds of certain non-ordinary assets sales or dispositions of property to prepay the Term Loan Facility and (iii) net cash proceeds of any issuance or incurrence of debt not permitted under the Senior Facilities to prepay the Term Loan Facility. We may make voluntary prepayments at any time without penalty, except in connection with a repricing event, as defined in the First Lien Credit Agreement. The fair value of the Term Loan Facility as of June 30, 2023 was $1,045.5 million, based on quoted market prices for identical assets that are traded in over-the-counter secondary markets that are not considered active. The fair value of the Term Loan Facility is classified as Level 2 within the fair value hierarchy. Rackspace Technology Global is the borrower under the Senior Facilities, and all obligations under the Senior Facilities are (i) guaranteed by Inception Parent, Inc., Rackspace Technology Global's immediate parent company, on a limited recourse basis and secured by the equity interests of Rackspace Technology Global held by Inception Parent, Inc. and (ii) guaranteed by Rackspace Technology Global's wholly-owned domestic restricted subsidiaries and secured by substantially all material owned assets of Rackspace Technology Global and the subsidiary guarantors, including the equity interests held by each, in each case subject to certain exceptions. The only financial covenant is with respect to the Revolving Credit Facility which limits the net first lien leverage ratio to a maximum of 5.00 to 1.00; however, this covenant is only applicable and tested if the aggregate amount of outstanding borrowings under the Revolving Credit Facility and letters of credit issued thereunder (excluding $25.0 million of undrawn letters of credit and cash collateralized letters of credit) is equal to or greater than 35% of the Revolving Credit Facility commitments at the end of a fiscal quarter. Other covenants include limitations on restricted payments, indebtedness, investments, liens, asset sales and transactions with affiliates. As of June 30, 2023, we were in compliance with all covenants under the Senior Facilities. The Revolving Credit Facility matures on August 7, 2025 and we borrowed $50.0 million during the three and six months ended June 30, 2023. As of June 30, 2023, we had total commitments of $375.0 million, $50.0 million of outstanding borrowings under the Revolving Credit Facility, and $3.5 million of letters of credit issued thereunder. As such, as of June 30, 2023, we had $325.0 million of available commitments remaining. 3.50% Senior Secured Notes due 2028 On February 9, 2021, Rackspace Technology Global issued $550.0 million aggregate principal amount of the 3.50% Senior Secured Notes. The 3.50% Senior Secured Notes will mature on February 15, 2028 and bear interest at an annual fixed rate of 3.50%. Interest is payable semiannually on each February 15 and August 15, commencing on August 15, 2021. The 3.50% Senior Secured Notes are not subject to registration rights. As noted above, we used the net proceeds from the issuance of the 3.50% Senior Secured Notes, together with borrowings under the Term Loan Facility described above, to repay all borrowings outstanding under the Prior Term Loan Facility, to pay related fees and expenses and for general corporate purposes. Rackspace Technology Global is the issuer of the 3.50% Senior Secured Notes, and obligations under the 3.50% Senior Secured Notes are fully and unconditionally guaranteed, jointly and severally, by all of Rackspace Technology Global’s wholly-owned domestic restricted subsidiaries (as subsidiary guarantors) that guarantee the Senior Facilities. The 3.50% Senior Secured Notes and the related guarantees are secured by first-priority security interests in substantially all material owned assets of Rackspace Technology Global and the subsidiary guarantors, including the equity interest held by each, subject to certain exceptions, which assets also secure the Senior Facilities. The indenture governing the 3.50% Senior Secured Notes (the "3.50% Notes Indenture") describes certain terms and conditions under which other current and future domestic subsidiaries are required to become guarantors of the 3.50% Senior Secured Notes. Rackspace Technology Global may redeem the 3.50% Senior Secured Notes at its option, in whole at any time or in part from time to time, at the following redemption prices: prior to February 15, 2024, at a redemption price equal to 100.000% of the principal amount, plus the applicable premium described in the 3.50% Notes Indenture and accrued and unpaid interest, if any, to but excluding the redemption date; from February 15, 2024 to February 14, 2025, at a redemption price equal to 101.750% of the principal amount, plus accrued and unpaid interest, if any, to but excluding the redemption date; from February 15, 2025 to February 14, 2026, at a redemption price equal to 100.875% of the principal amount, plus accrued and unpaid interest, if any, to but excluding the redemption date; and from February 15, 2026 and thereafter, at a redemption price equal to 100.000% of the principal amount, plus accrued and unpaid interest, if any, to but excluding the redemption date. Rackspace Technology Global may also redeem prior to February 15, 2024 up to 40.0% of the aggregate principal amount of the 3.50% Senior Secured Notes with funds in an aggregate amount not to exceed the net cash proceeds from certain equity offerings at a redemption price equal to 103.500% of the principal amount of the 3.50% Senior Secured Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. Notwithstanding the foregoing, Rackspace Technology Global m ay redeem during each twelve-month period, commencing with February 9, 2021, up to 10.0% of the original aggregate principal amount of the 3.50% Senior Secured Notes at a redemption price of 103.000%, plus accrued and unpaid interest, if any, to, but excluding, the applicable redemption date. The 3.50% Notes Indenture contains covenants that, among other things, limit our ability to incur certain additional debt, incur certain liens securing debt, pay certain dividends or make other restricted payments, make certain investments, make certain asset sales and enter into certain transactions with affiliates. These covenants are subject to a number of exceptions, limitations, and qualifications as set forth in the 3.50% Notes Indenture. Additionally, upon the occurrence of a change of control (as defined in the 3.50% Notes Indenture), we will be required to make an offer to repurchase all of the outstanding 3.50% Senior Secured Notes at a price in cash equal to 101.000% of the aggregate principal amount, plus accrued and unpaid interest, if any, to, but not including the purchase date. As of June 30, 2023, Rackspace Technology Global was in compliance with all covenants under the 3.50% Notes Indenture. The fair value of the 3.50% Senior Secured Notes as of June 30, 2023 was $247.5 million, based on quoted market prices for identical assets that are traded in over-the-counter secondary markets that are not considered active. The fair value of the 3.50% Senior Secured Notes are classified as Level 2 within the fair value hierarchy. 5.375% Senior Notes due 2028 On December 1, 2020, Rackspace Technology Global issued $550.0 million aggregate principal amount of the 5.375% Senior Notes. The 5.375% Senior Notes will mature on December 1, 2028 and bear interest at an annual fixed rate of 5.375%. Interest is payable semiannually on each June 1 and December 1, commencing on June 1, 2021. The 5.375% Senior Notes are not subject to registration rights. Rackspace Technology Global is the issuer of the 5.375% Senior Notes, and obligations under the 5.375% Senior Notes are guaranteed on a senior unsecured basis by all of Rackspace Technology Global's wholly-owned domestic restricted subsidiaries (as subsidiary guarantors) that guarantee the Senior Facilities. The 5.375% Senior Notes are effectively junior to the indebtedness under the Senior Facilities and the 3.50% Senior Secured Notes, to the extent of the collateral securing the Senior Facilities and the 3.50% Senior Secured Notes. The indenture governing the 5.375% Senior Notes (the "5.375% Notes Indenture") describes certain terms and conditions under which other current and future domestic subsidiaries are required to become guarantors of the 5.375% Senior Notes. Rackspace Technology Global may redeem the 5.375% Senior Notes at its option, in whole at any time or in part from time to time, at the following redemption prices: prior to December 1, 2023, at a redemption price equal to 100.000% of the principal amount, plus the applicable premium described in the 5.375% Notes Indenture and accrued and unpaid interest, if any, to but excluding the redemption date; from December 1, 2023 to November 30, 2024, at a redemption price equal to 102.688% of the principal amount, plus accrued and unpaid interest, if any, to but excluding the redemption date; from December 1, 2024 to November 30, 2025, at a redemption price equal to 101.344% of the principal amount, plus accrued and unpaid interest, if any, to but excluding the redemption date; and from December 1, 2025 and thereafter, at a redemption price equal to 100.000% of the principal amount, plus accrued and unpaid interest, if any, to but excluding the redemption date. Rackspace Technology Global may also redeem prior to December 1, 2023 up to 40.0% of the aggregate principal amount of the 5.375% Senior Notes with funds in an aggregate amount not to exceed the net cash proceeds from certain equity offerings at a redemption price equal to 105.375% of the principal amount of the 5.375% Senior Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. During the three and six months ended June 30, 2023, Rackspace Technology Global repurchased and surrendered for cancellation $142.1 million and $164.8 million principal amount of 5.375% Senior Notes for $46.8 million and $56.8 million, including accrued interest of $1.0 million and $1.3 million, respectively. In connection with these repurchases, we recorded a "Gain on debt extinguishment" of $94.9 million and $107.7 million, respectively, in our Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2023, which includes $1.3 million and $1.6 million of unamortized debt issuance costs write-offs, respectively. The 5.375% Notes Indenture contains covenants that, among other things, limit our ability to incur certain additional debt, incur certain liens securing debt, pay certain dividends or make other restricted payments, make certain investments, make certain asset sales and enter into certain transactions with affiliates. These covenants are subject to a number of exceptions, limitations, and qualifications as set forth in the 5.375% Notes Indenture. Additionally, upon the occurrence of a change of control (as defined in the 5.375% Notes Indenture), we will be required to make an offer to repurchase all of the outstanding 5.375% Senior Notes at a price in cash equal to 101.000% of the aggregate principal amount, plus accrued and unpaid interest, if any, to, but not including the purchase date. As of June 30, 2023, Rackspace Technology Global was in compliance with all covenants under the 5.375% Notes Indenture. The fair value of the 5.375% Senior Notes as of June 30, 2023 was $115.6 million, based on quoted market prices for identical assets that are traded in over-the-counter secondary markets that are not considered active. The fair value of the 5.375% Senior Notes are classified as Level 2 within the fair value hierarchy. Subsequent to June 30, 2023 and through August 9, 2023, Rackspace Technology Global repurchased and surrendered for cancellation an additional $57.1 million aggregate principal amount of 5.375% Senior Notes for $20.3 million, including accrued interest of $0.3 million and excluding related fees and expenses.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies We have contingencies that arise from various litigation, claims and commitments, none of which we consider to be material. From time to time, we are a party to various claims asserting that certain of our services and technologies infringe the intellectual property rights of others. Adverse results in these lawsuits may include awards of substantial monetary damages, costly royalty or licensing agreements, or orders preventing us from offering certain features, products, or services, and may also cause us to change our business practices and require development of non-infringing products or technologies, which could result in a loss of revenue for us or otherwise harm our business. We record an accrual for a loss contingency when a loss is considered probable and reasonably estimable. As additional facts concerning a loss contingency become known, we reassess our position and make appropriate adjustments to a recorded accrual. The amount that will ultimately be paid related to a matter may differ from the recorded accrual, and the timing of such payments, if any, may be uncertain. We are not a party to any litigation, the outcome of which, if determined adversely to us, would individually or in the aggregate be reasonably expected to have a material and adverse effect on our business, financial position or results of operations. Hosted Exchange Incident

Share Repurchase Program

Share Repurchase Program	6 Months Ended
Share Repurchase Program	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Share Repurchase Program	Share Repurchase Program On March 3, 2022, our board of directors authorized a program to repurchase up to $75.0 million of shares of our common stock from time to time through open-market transactions, privately negotiated transactions, accelerated share repurchases and other transactions in accordance with applicable security laws. The program expires on September 30, 2023 and can be discontinued at any time. During the three and six months ended June 30, 2022 , we repurchased $26.9 million and $31.0 million, or 2.7 million and 3.1 million shares, respectively, of our common stock on the open market under this program. No shares were repurchased during the three and six months ended June 30, 2023. Shares purchased pursuant to the program are recorded as treasury stock at cost in the Condensed Consolidated Balance Sheets . As of June 30, 2023, approximately $44.0 million of the amount authorized by the board under the current program remained available for additional purchases.

Share-Based Compensation

Share-Based Compensation	6 Months Ended
Share-Based Compensation	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation	Share-Based Compensation On April 21, 2023, the Board of Directors approved an amendment to the Rackspace Technology, Inc. 2020 Equity Incentive Plan (the "2020 Incentive Plan") to increase the maximum number of shares of our common stock available for issuance under the 2020 Incentive Plan from 50.0 million shares to 57.9 million shares, subject to stockholder approval. The amendment was subsequently approved by our stockholders as part of the 2023 Annual Meeting of Stockholders held on June 16, 2023. During the six months ended June 30, 2023, we granted 26.1 million restricted stock units ("RSUs") under the 2020 Incentive Plan with a weighted-average grant date fair value of $2.21. The majority of the RSUs were granted as part of our annual compensation award process and vest ratably over a three-year period, subject to continued service. In addition, during the six months ended June 30, 2023, 2.8 million performance stock units ("PSUs") were granted under the 2020 Incentive Plan with a weighted-average grant date fair value of $1.90, and 5.5 million long-term incentive cash units ("LTIC units") were granted under the 2020 Incentive Plan with a weighted-average fair value as of June 30, 2023 of $1.24. Both the PSUs and LTIC units represent the target amount of grants, and the actual number of shares or units awarded upon vesting may vary depending upon the achievement of the relevant market condition which is based on Rackspace's Total Shareholder Return ("TSR") relative to the TSR of a comparator group of IT and Cloud Services Companies. The awards are eligible to vest in equal annual installments over three years based on the attainment of the market condition and the employee's continued service through the end of the applicable measurement period and were valued using a Monte Carlo simulation. As the company intends to settle the LTIC units in cash, they are classified as a liability within "Other current liabilities" and "Other non-current liabilities" in the Condensed Consolidated Balance Sheets. Total share-based compensation expense is comprised of the following equity and liability classified award amounts: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2022 2023 2022 2023 Equity classified awards $ 23.1 $ 18.6 $ 40.1 $ 33.3 Liability classified awards — 0.9 — 1.4 Total share-based compensation expense $ 23.1 $ 19.5 $ 40.1 $ 34.7 Total share-based compensation expense recogniz ed was as follows: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2022 2023 2022 2023 Cost of revenue $ 3.4 $ 2.6 $ 6.2 $ 5.4 Selling, general and administrative expenses 19.7 16.9 33.9 29.3 Pre-tax share-based compensation expense 23.1 19.5 40.1 34.7 Less: Income tax benefit (4.8) (4.1) (8.4) (7.3) Total share-based compensation expense, net of tax $ 18.3 $ 15.4 $ 31.7 $ 27.4 As of June 30, 2023, there was $116.6 million of total unrecognized compensation cost related to stock options, RSUs, and PSUs, which will be recognized using the service period or over our best estimate of the period over which the performance condition will be met, as applicable.

Taxes

Taxes	6 Months Ended
Taxes	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Taxes	Taxes We are subject to U.S. federal income tax and various state, local, and international income taxes in numerous jurisdictions. The differences between our effective tax rate and the U.S. federal statutory rate of 21% generally result from various factors, including the geographical distribution of taxable income, tax credits, contingency reserves for uncertain tax positions, and permanent differences between the book and tax treatment of certain items. Additionally, the amount of income taxes paid is subject to our interpretation of applicable tax laws in the jurisdictions in which we file. For the three months ended June 30, 2023 , our effective tax rate is lower than the U.S. federal statutory rate of 21% primarily due to executive compensation that is nondeductible under Internal Revenue Code ("IRC") Section 162(m), the net impact of the geographic distribution of our earnings, tax effects from nondeductible share-based compensation as well as changes in our valuation allowance. For the six months ended June 30, 2023 , our effective tax rate is lower than the U.S. federal statutory rate of 21% primarily due to the tax impact associated with the goodwill impairment recorded in the first quarter of 2023, the majority of which was nondeductible for income tax purposes, executive compensation that is nondeductible under IRC Section 162(m), the net impact of the geographic distribution of our earnings, tax effects from nondeductible share-based compensation as well as changes in our valuation allowance. During the first quarter of 2023, we determined that certain deferred tax assets no longer meet the more likely than not recognition criteria. As such, we have provided a valuation allowance for these assets, which is incorporated into our annual effective tax rate. On August 16, 2022, the Inflation Reduction Act of 2022 ("IRA") was enacted into law. The IRA introduces a new corporate minimum tax of 15% on global adjusted financial statement income. We do not expect there will be a material impact to our consolidated financial statements from the IRA.

Derivatives

Derivatives	6 Months Ended
Derivatives	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives	Derivatives We utilize derivative instruments, including interest rate swap agreements, to manage our exposure to interest rate risk. We only hold such instruments for economic hedging purposes, not for speculative or trading purposes. Our derivative instruments are transacted only with highly-rated institutions, which reduces our exposure to credit risk in the event of nonperformance. Interest Rate Swaps We are exposed to interest rate risk associated with fluctuations in interest rates on the floating-rate Term Loan Facility. The objective in using interest rate derivatives is to manage our exposure to interest rate movements. To accomplish this objective, we have entered into interest rate swap agreements as part of our interest rate risk management strategy. Interest rate swaps involve the receipt of variable amounts from a counterparty in exchange for the company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. On January 9, 2020, we designated certain of our swaps as cash flow hedges. On the designation date, the cash flow hedges were in a $39.9 million liability position. The cash flow hedges were expected to be highly effective on the designation date and, on a quarterly basis, we performed retrospective and prospective regression assessments to determine whether the cash flow hedges continue to be highly effective. As long as the cash flow hedges are highly effective, changes in fair value are recorded to "Accumulated other comprehensive income" in the Condensed Consolidated Balance Sheets and reclassified to "Interest expense" in the period when the underlying transaction affects earnings. The income tax effects of cash flow hedges are released from "Accumulated other comprehensive income" in the period when the underlying transaction affects earnings. Any stranded income tax effects are released from "Accumulated other comprehensive income" into "Benefit (provision) for income taxes" under the portfolio a pproach. During the year ended December 31, 2021, we completed a series of transactions to modify our interest rate swap positions as follows: (i) All the interest rate swaps outstanding as of December 31, 2020, with the exception of the agreement that matured on February 3, 2021, were de-designated as cash flow hedges on January 31, 2021, (ii) on February 12, 2021, we entered into a $900.0 million receive-fixed interest rate swap which was designed to offset the terms of two December 2016 swaps, and (iii) on February 12, 2021, we terminated all December 2018 swaps and entered into a $1.35 billion pay-fixed interest rate swap, effectively blending the liability position of our existing interest rate swap agreements into the new swap and extending the term of our hedged position to February 2026. The amount remaining in "Accumulated other comprehensive income" for the de-designated December 2016 and December 2018 swaps at the de-designation date was app roximately $51.6 million, and is amortized as an increase to "Interest expense" over the effective period of the original swap agreements. The new receive-fixed interest rate swap qualifies as a hybrid instrument in accordance with ASC No. 815, Derivatives and Hedging , consisting of a loan and an embedded derivative for which the fair value option has been elected. This $900.0 million swap remained undesignated to economically offset the undesignated December 2016 swaps. This new swap and the December 2016 swaps matured on February 3, 2022. Cash settlements related to this receive-fixed interest rate swap offset and are classified as operating activities in the Condensed Consolidated Statements of Cash Flows. The new pay-fixed interest rate swap also qualifies as a hybrid instrument in accordance with ASC No. 815, Derivatives and Hedging , consisting of a loan and an embedded at-market derivative that was designated as a cash flow hedge. The loan is accounted for at amortized cost over the life of the swap while the embedded at-market derivative is accounted for at fair value. The $1.35 billion swap was originally indexed to three-month LIBOR and net settled on a quarterly basis with the counterparty for the difference between the fixed rate of 2.3820% and the variable rate based upon three-month LIBOR (subject to a floor of 0.75%) as applied to the notional amount of the swap. In connection with the transactions discussed above, no cash was exchanged between us and the counterparty. The liability of the terminated interest rate swaps as well as the inception value of the receive-fixed interest rate swap was blended into the new pay-fixed interest rate swap. The cash flows related to the portion treated as debt will be classified as financing activities in the Condensed Consolidated Statements of Cash Flows while the portion treated as an at-market derivative will be classified as operating activities. As discussed in Note 6, "Debt", on April 26, 2023 we executed an amendment to our First Lien Credit Agreement, which governs borrowings under our Term Loan Facility. This amendment established Term SOFR as the benchmark rate for determining the applicable interest rate, replacing LIBOR. To continue to manage our exposure to interest rate risk associated with our Term Loan Facility, effective May 9, 2023, we amended our remaining swap agreement to change the index from three-month LIBOR (subject to a floor of 0.75%) to one-month Term SOFR (subject to a floor of 0.75%). The fixed rate also changed from 2.3820% to 2.34150% as a result of the swap agreement amendment. As described in Note 1, "Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies" we elected to apply certain practical expedients under GAAP to allow for this transition without any interruptions to hedge accounting treatment. On a monthly basis, we net settle with the counterparty for the difference between the fixed rate of 2.34150% and the variable rate based upon the one-month Term SOFR (subject to a floor of 0.75%) as applied to the notional amount of the swap. As of December 31, 2022 and June 30, 2023, the cash flow hedge was highly effective. The key terms of interest rate swaps are presented below: Effective Date Fixed Rate Paid (Received) December 31, 2022 June 30, 2023 Notional Amount (in millions) Status Notional Amount (in millions) Status Maturity Date Entered into December 2016: February 3, 2017 1.9040% $ — Matured $ — Matured February 3, 2022 February 3, 2017 1.9040% — Matured — Matured February 3, 2022 Entered into December 2018: February 3, 2019 2.7490% — Terminated — Terminated November 3, 2023 February 3, 2020 2.7350% — Terminated — Terminated November 3, 2023 February 3, 2021 2.7360% — Terminated — Terminated November 3, 2023 February 3, 2022 2.7800% — Terminated — Terminated November 3, 2023 Entered into February 2021: February 3, 2021 (1.9040)% — Matured — Matured February 3, 2022 February 9, 2021 2.34150% (1) 1,350.0 Active 1,350.0 Active February 9, 2026 Total $ 1,350.0 $ 1,350.0 (1) Fixed rate paid prior to the May 9, 2023 amendment was 2.3820%. Our interest rate swap agreements, excluding the portion treated as debt, are recognized at fair value in the Condensed Consolidated Balance Sheets and are valued using pricing models that rely on market observable inputs such as yield curve data, which are classified as Level 2 inputs within the fair value hierarchy. Fair Values of Derivatives on the Condensed Consolidated Balance Sheets The fair values of our derivatives and their location on the Condensed Consolidated Balance Sheets as of December 31, 2022 and June 30, 2023 were as follows: December 31, 2022 June 30, 2023 (In millions) Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments Location Interest rate swaps Other current assets $ 44.3 $ — $ 54.0 $ — Interest rate swaps Other non-current assets 80.5 — 63.5 — Interest rate swaps Other current liabilities (1) — 17.3 — 17.4 Interest rate swaps Other non-current liabilities (1) — 39.1 — 29.0 Total $ 124.8 $ 56.4 $ 117.5 $ 46.4 (1) The entire balance is comprised of the financing component of the pay-fixed interest rate swap. For financial statement presentation purposes, we do not offset assets and liabilities under master netting arrangements and all amounts above are presented on a gross basis. The following table, however, is presented on a net asset and net liability basis: December 31, 2022 June 30, 2023 (In millions) Gross Amounts on Balance Sheet Effects of Counterparty Netting Net Amounts Gross Amounts on Balance Sheet Effects of Counterparty Netting Net Amounts Assets Interest rate swaps $ 124.8 $ (56.4) $ 68.4 $ 117.5 $ (46.4) $ 71.1 Liabilities Interest rate swaps $ 56.4 $ (56.4) $ — $ 46.4 $ (46.4) $ — Effect of Derivatives on the Condensed Consolidated Statements of Comprehensive Loss The effect of our derivatives and their location on the Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2022 and 2023 was as follows: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2022 2023 2022 2023 Derivatives not designated as hedging instruments Location Interest rate swaps Interest income (expense) $ (4.6) $ (4.5) $ (9.2) $ (9.1) Derivatives designated as hedging instruments Location Interest rate swaps Interest income (expense) $ — $ 13.5 $ (1.3) $ 25.7 Interest expense was $50.5 million and $57.3 million for the three months ended June 30, 2022 and 2023, respectively, and $100.6 million and $114.2 million for the six months ended June 30, 2022 and 2023, respectively. As of June 30, 2023, the amount of cash flow hedge gain included within "Accumulated other comprehensive income" that is expected to be reclassified as a reduction to "Interest expense" over the next 12 months is approximately $50.5 million. See Note 12, "Accumulated Other Comprehensive Income (Loss)," for information regarding changes in fair value of our derivatives designated as hedging instruments. Credit-risk-related Contingent Features We have agreements with interest rate swap counterparties that contain a provision whereby if we default on any of our material indebtedness, then we could also be declared in default of our interest rate swap agreements. As of June 30, 2023, our outstanding interest rate swap agreement was in a net asset position.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
Accumulated Other Comprehensive Income (Loss)	Jun. 30, 2023
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) consisted of the following: (In millions) Accumulated Foreign Currency Translation Adjustments Accumulated Gain on Derivative Contracts Accumulated Other Comprehensive Income Balance at March 31, 2022 $ 12.6 $ 36.3 $ 48.9 Foreign currency translation adjustments, net of tax benefit of $1.5 (18.2) — (18.2) Unrealized gain on derivative contracts, net of tax expense of $3.8 — 11.0 11.0 Amount reclassified from Accumulated comprehensive income (loss) into earnings, net of tax benefit of $1.2 (1) — 3.4 3.4 Balance at June 30, 2022 $ (5.6) $ 50.7 $ 45.1 (1) Includes amortization of off-market swap value and accumulated loss at hedge de-designation of $4.6 million for the three months ended June 30, 2022. (In millions) Accumulated Foreign Currency Translation Adjustments Accumulated Gain (Loss) on Derivative Contracts Accumulated Other Comprehensive Income Balance at December 31, 2021 $ 17.2 $ (10.3) $ 6.9 Foreign currency translation adjustments, net of tax benefit of $2.2 (22.8) — (22.8) Unrealized gain on derivative contracts, net of tax expense of $18.4 — 53.3 53.3 Amount reclassified from Accumulated comprehensive income (loss) into earnings, net of tax benefit of $2.7 (1) — 7.7 7.7 Balance at June 30, 2022 $ (5.6) $ 50.7 $ 45.1 (1) Includes interest expense recognized of $1.2 million and amortization of off-market swap value and accumulated loss at hedge de-designation of $9.2 million for the six months ended June 30, 2022. (In millions) Accumulated Foreign Currency Translation Adjustments Accumulated Gain on Derivative Contracts Accumulated Other Comprehensive Income Balance at March 31, 2023 $ (6.6) $ 70.2 $ 63.6 Foreign currency translation adjustments, net of tax expense of $0.5 2.8 — 2.8 Unrealized gain on derivative contracts, net of tax expense of $6.6 — 19.3 19.3 Amount reclassified from Accumulated comprehensive income (loss) into earnings, net of tax expense of $2.2 (1) — (6.8) (6.8) Balance at June 30, 2023 $ (3.8) $ 82.7 $ 78.9 (1) Includes a reduction to interest expense recognized of $13.5 million related to the cash flow hedge gain for the three months ended June 30, 2023, partially offset by an increase to interest expense for the amortization of off-market swap value and accumulated loss at hedge de-designation of $4.5 million. ` (In millions) Accumulated Foreign Currency Translation Adjustments Accumulated Gain on Derivative Contracts Accumulated Other Comprehensive Income Balance at December 31, 2022 $ (10.0) $ 81.4 $ 71.4 Foreign currency translation adjustments, net of tax expense of $0.9 6.2 — 6.2 Unrealized gain on derivative contracts, net of tax expense of $4.7 — 13.7 13.7 Amount reclassified from Accumulated comprehensive income (loss) into earnings, net of tax expense of $4.2 (1) — (12.4) (12.4) Balance at June 30, 2023 $ (3.8) $ 82.7 $ 78.9 (1) Includes a reduction to interest expense recognized of $25.7 million related to the cash flow hedge gain for the six months ended June 30, 2023, partially offset by an increase to interest expense for the amortization of off-market swap value and accumulated loss at hedge de-designation of $9.1 million.

Related Party Transactions

Related Party Transactions	6 Months Ended
Related Party Transactions	Jun. 30, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Related Party TransactionsAffiliates of ABRY Partners, LLC and ABRY Partners II, LLC (collectively, "ABRY"), are Term Loan Facility lenders under the First Lien Credit Agreement. As of June 30, 2023, the outstanding principal amount of the Term Loan Facility was $2,248.3 million, of which $58.7 million, or 2.6%, is due to ABRY affiliates. Investment funds affiliated with ABRY are also co-investors in Rackspace Technology.

Segment Reporting

Segment Reporting	6 Months Ended
Segment Reporting	Jun. 30, 2023
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting Effective on January 1, 2023, we reorganized around a two-business unit operating model, Public Cloud and Private Cloud. This two-business unit operating model ensures increased focus, delivery, and service quality for our customers. We have changed our segment reporting to reflect this reorganization under two operating segments, which correspond directly to our reportable segments: Public Cloud, a services-centric, capital-light model providing value-added cloud solutions through managed services, Elastic Engineering and professional services offerings for customer environments hosted on the AWS, Microsoft Azure and Google Cloud public cloud platforms; and Private Cloud, a technology-forward, capital-intensive model providing managed service offerings for customer environments hosted in one of our data centers as well as in those owned by customers or by third parties such as colocation providers. Private Cloud also includes our legacy OpenStack Public Cloud business that we ceased to actively market to customers in 2017. Our prior Multicloud Services segment has been separated into its public and private cloud components and the offerings previously reported in our Apps & Cross Platform segment have been reassigned to either the Public Cloud or Private Cloud segment based on the nature of the offering. Our segments are based upon a number of factors, including, the basis for our budgets and forecasts, organizational and management structure and the financial information regularly used by our Chief Operating Decision Maker to make key decisions and to assess performance. We assess financial performance of our segments on the basis of revenue and segment operating profit. Segment operating profit includes expenses directly attributable to running the respective segments' business. This excludes any corporate overhead expenses. We have centralized corporate functions that provide services to the segments in areas such as accounting, information technology, marketing, legal and human resources. Corporate function costs that are not allocated to the segments are included in the row labeled "Corporate functions" in the table below. 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 and six months ended June 30, 2022 and 2023. Three Months Ended June 30, Six Months Ended June 30, (In millions) 2022 2023 2022 2023 Revenue by segment: Public Cloud $ 422.1 $ 434.9 $ 839.1 $ 879.5 Private Cloud 350.1 311.4 708.6 625.5 Total consolidated revenue $ 772.2 $ 746.3 $ 1,547.7 $ 1,505.0 Segment operating profit: Public Cloud $ 29.9 $ 17.0 $ 64.4 $ 41.5 Private Cloud 132.7 86.8 269.5 179.7 Total consolidated segment operating profit 162.6 103.8 333.9 221.2 Corporate functions (64.1) (64.8) (123.3) (131.7) Share-based compensation expense (23.1) (19.5) (40.1) (34.7) Special bonuses and other compensation expense (1) (2.4) (4.2) (5.8) (6.4) Transaction-related adjustments, net (2) (1.9) (1.2) (7.2) (2.5) Restructuring and transformation expenses (3) (24.9) (23.1) (48.2) (48.7) Hosted Exchange incident expenses — (1.7) — (4.9) Amortization of intangible assets (4) (42.2) (41.0) (84.4) (81.9) Impairment of goodwill — — — (543.1) UK office closure (5) — (12.1) — (12.1) Interest expense (50.5) (57.3) (100.6) (114.2) Gain (loss) on investments, net (0.2) 0.1 (0.3) 0.2 Gain on debt extinguishment — 94.9 — 107.7 Other income (expense), net (5.9) 0.2 (9.5) 2.3 Total consolidated loss before income taxes $ (52.6) $ (25.9) $ (85.5) $ (648.8) (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. Beginning in the second quarter of 2023, includes expense related to the one-time grant of long-term incentive bonuses as a component of our annual compensation award process. (2) Includes legal, professional, accounting and other advisory fees related to acquisitions, certain one-time compliance costs related to being a public company, 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, certain facility closure costs, and lease termination expenses. This amount also includes total charges of $1.0 million and $4.2 million for the three and six months ended June 30, 2022, respectively, 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. (5) Expense recognized related to the closure of a UK office that we exited in the second quarter of 2023 prior to the lease end date. The table below presents depreciation expense included in segment operating profit above for the three and six months ended June 30, 2022 and 2023. Three Months Ended June 30, Six Months Ended June 30, (In millions) 2022 2023 2022 2023 Public Cloud $ 2.1 $ 2.5 $ 4.3 $ 4.6 Private Cloud 42.6 44.9 88.5 88.8 Corporate functions 11.4 9.3 22.6 17.1 Total depreciation expense $ 56.1 $ 56.7 $ 115.4 $ 110.5 Management does not use total assets by segment to evaluate segment performance or allocate resources. As such, total assets by segment are not disclosed.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Millions	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net loss	$ (27.2)	$ (40.6)	$ (639.2)	$ (79.1)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Company Overview, Basis of Pr_2

Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Principles of Consolidation	The unaudited condensed consolidated financial statements include the accounts of Rackspace Technology, Inc. and our wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation.
Unaudited Interim Financial Information	Unaudited Interim Financial Information The unaudited condensed consolidated financial statements as of June 30, 2023, and for the three and six months ended June 30, 2022 and 2023, have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information. Accordingly, certain financial information and disclosures required for financial statements prepared under GAAP have been omitted in accordance with the Securities and Exchange Commission ("SEC") disclosure rules and regulations that permit reduced disclosure for interim periods. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the SEC on March 16, 2023 ("Annual Report"). The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements included in our Annual Report and, in the opinion of management, reflect all adjustments, which include normal recurring adjustments, necessary for a fair statement of our financial position as of June 30, 2023, our results of operations and stockholders' equity for the three and six months ended June 30, 2022 and 2023, and our cash flows for the six months ended June 30, 2022 and 2023. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2023, or for any other interim period, or for any other future year.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expenses, and related disclosures of contingent assets and liabilities in the condensed consolidated financial statements and accompanying notes. On an ongoing basis, we evaluate our estimates, including those related to the allowance for credit losses, useful lives of property, equipment and software, software capitalization, incremental borrowing rates for lease liability measurement, fair values of intangible assets and reporting units, useful lives of intangible assets, share-based compensation, contingencies, and income taxes, among others. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from our estimates.
Goodwill and Indefinite-Lived Intangible Assets	Goodwill, Indefinite-Lived Intangible Assets and Long-Lived Assets Goodwill represents the excess of the purchase price over the fair value of identifiable net assets of businesses acquired. Our indefinite-lived intangible asset consists of our Rackspace trade name, which was recorded at fair value on our balance sheet at the date of the Rackspace Acquisition. Goodwill and indefinite-lived intangible assets are not amortized but are subject to impairment testing on an annual basis as of October 1st or more frequently if events or circumstances indicate a potential impairment. These events or circumstances could include a significant change in the business climate, regulatory environment, established business plans, operating performance indicators or competition. Potential impairment indicators may also include, but are not limited to, (i) significant changes to estimates and assumptions used in the most recent annual or interim impairment testing, (ii) downward revisions to internal forecasts, and the magnitude thereof, (iii) declines in our market capitalization below our book value, and the magnitude and duration of those declines, (iv) a reorganization resulting in a change to our operating segments, and (v) other macroeconomic factors, such as increases in interest rates that may affect the weighted average cost of capital, volatility in the equity and debt markets, or fluctuations in foreign currency exchange rates that may negatively impact our reported results of operations. During the first quarter of 2023, we experienced a sustained decline in our stock price resulting in our market capitalization being less than the carrying value of our combined reporting units. As of March 31, 2023, we assessed several events and circumstances that could affect the significant inputs used to determine the fair value of our reporting units, including the significance of the amount, if any, of excess carrying value over fair value, consistency of operating margins and cash flows, budgeted-to-actual performance for the first three months of the year, overall change in economic climate, changes in the industry and competitive environment, and earnings quality and sustainability. After considering all available evidence in our evaluation of goodwill impairment indicators, we determined it appropriate to perform an interim quantitative assessment of our reporting units as of March 31, 2023. Goodwill is tested for impairment at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment (referred to as a component). We allocate goodwill to reporting units based on the reporting unit expected to benefit from the business combination. Assets and liabilities are assigned to each of our reporting units if they are employed by a reporting unit and are considered in the determination of the reporting unit fair value. Certain assets and liabilities are shared by multiple reporting units, and thus, are allocated to each reporting unit based on the relative size of a reporting unit, primarily based on revenue. We have two reporting units with goodwill: Public Cloud and Private Cloud. Goodwill allocated to our third reporting unit, OpenStack Public Cloud, was fully impaired during the fourth quarter of 2021. For the interim quantitative goodwill impairment analyses performed as of January 1, 2023 and March 31, 2023, we compare the fair values of each of our reporting units to their respective carrying amounts. The fair values of each of our reporting units were derived using the income approach, specifically the discounted cash flow method. The discounted cash flow models reflect our assumptions regarding revenue growth rates, projected gross profit margins, risk-adjusted discount rates, terminal period growth rates, economic and market trends and other expectations about the anticipated operating results of our reporting units. As part of the goodwill impairment test, we also consider our market capitalization in assessing the reasonableness of the combined fair values estimated for our reporting units, including OpenStack Public Cloud. Goodwill impairment is measured as the excess of a reporting unit's carrying amount over its fair value, not to exceed the carrying amount of goodwill for that reporting unit. Our indefinite-lived intangible asset is tested for impairment at the consolidated level. In evaluating the recoverability of the Rackspace trade name, we compare the fair value of the asset to its carrying amount to determine potential impairment. Our estimate of the fair value of the Rackspace trade name is derived using the income approach, specifically the relief-from-royalty method. We performed a quantitative assessment of our indefinite-lived intangible asset prior to testing our goodwill for impairment as of January 1, 2023 and March 31, 2023 which did not indicate any impairment of the Rackspace trade name.
Long-Lived Assets	Long-lived assets, including operating and finance lease assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets is measured at the asset group level. If the carrying amount of an asset group exceeds its estimated undiscounted future cash flows, then an impairment charge is recognized in the amount that an asset group's carrying amount exceeds its fair value. We performed recoverability tests of our long-lived assets in conjunction with the goodwill impairment analyses as of January 1, 2023 and March 31, 2023 which did not result in any impairment charges.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Reference Rate Reform The United Kingdom's Financial Conduct Authority, which regulates the London Interbank Offered Rate ("LIBOR"), announced that it will not compel panel banks to contribute to the overnight 1, 3, 6 and 12 months U.S. dollar LIBOR tenors after June 30, 2023 and all other tenors after December 31, 2021. U.S. dollar LIBOR may be replaced by the Secured Overnight Financing Rate ("SOFR") or other benchmark rates over the next several years. In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-04, Reference Rate Reform (ASC 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting containing practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (ASC 848) - Deferral of the Sunset Date of Topic 848 , which extended the date to apply the practical expedients outlined in ASU No. 2020-04 from December 31, 2022 to December 31, 2024. The guidance in these ASUs is optional and may be applied from March 12, 2020 through December 31, 2024 as reference rate reform activities occur. During the three months ended June 30, 2023, we elected to apply certain practical expedients in connection with the execution of amendments to our affected contracts that referenced LIBOR. On April 26, 2023, we executed an amendment to our First Lien Credit Agreement, which governs our Senior Facilities borrowings, to establish Term SOFR as the benchmark rate for determining the applicable interest rate, replacing LIBOR. In addition, effective May 9, 2023, we amended our interest rate swap agreement to change the index from three-month LIBOR to one-month Term SOFR. See Note 6, "Debt" and Note 11, "Derivatives" for more information. We continue to evaluate the impact of the guidance and may apply other elections prior to December 31, 2024, as applicable, as additional changes in the market occur.
Net Loss Per Share	Net Loss Per ShareBasic net loss per share is calculated by dividing net loss attributable to common stockholders by the weighted average shares outstanding during the period.
Derivatives	Derivatives We utilize derivative instruments, including interest rate swap agreements, to manage our exposure to interest rate risk. We only hold such instruments for economic hedging purposes, not for speculative or trading purposes. Our derivative instruments are transacted only with highly-rated institutions, which reduces our exposure to credit risk in the event of nonperformance. Interest Rate Swaps We are exposed to interest rate risk associated with fluctuations in interest rates on the floating-rate Term Loan Facility. The objective in using interest rate derivatives is to manage our exposure to interest rate movements. To accomplish this objective, we have entered into interest rate swap agreements as part of our interest rate risk management strategy. Interest rate swaps involve the receipt of variable amounts from a counterparty in exchange for the company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

Customer Contracts (Tables)

Customer Contracts (Tables)	6 Months Ended
Customer Contracts (Tables)	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Balances Related to Customer Contracts	The following table presents the balances related to customer contracts: (In millions) Condensed Consolidated Balance Sheets Account December 31, 2022 June 30, 2023 Accounts receivable, net Accounts receivable, net (1) $ 622.2 $ 543.8 Current portion of contract assets Other current assets $ 16.0 $ 11.5 Non-current portion of contract assets Other non-current assets $ 10.4 $ 11.0 Current portion of deferred revenue Deferred revenue $ 80.9 $ 73.5 Non-current portion of deferred revenue Other non-current liabilities $ 8.6 $ 7.1
Schedule of Capitalized Contract Cost	Amortization of capitalized sales commissions and implementation costs was as follows: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2022 2023 2022 2023 Amortization of capitalized sales commissions $ 11.0 $ 9.8 $ 22.3 $ 20.1 Amortization of capitalized implementation costs $ 4.2 $ 3.4 $ 8.6 $ 7.0

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
Net Loss Per Share (Tables)	Jun. 30, 2023
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Net Loss Per Share	The following table sets forth the computation of basic and diluted net loss per share: Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share data) 2022 2023 2022 2023 Basic and diluted net loss per share: Net loss attributable to common stockholders $ (40.6) $ (27.2) $ (79.1) $ (639.2) Weighted average shares outstanding: Common stock 209.5 215.1 210.5 214.2 Number of shares used in per share computations 209.5 215.1 210.5 214.2 Net loss per share $ (0.19) $ (0.13) $ (0.38) $ (2.98)

Property, Equipment and Softw_2

Property, Equipment and Software, net (Tables)	6 Months Ended
Property, Equipment and Software, net (Tables)	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Schedule of Property, Equipment, and Software, net	Property, equipment and software, net, consisted of the following: (In millions) December 31, June 30, Computers and equipment $ 1,131.2 $ 1,170.7 Software 464.2 468.0 Furniture and fixtures 15.8 16.5 Buildings and leasehold improvements 402.2 410.8 Property, equipment and software, at cost 2,013.4 2,066.0 Less: Accumulated depreciation (1,400.3) (1,440.0) Work in process 15.2 15.4 Property, equipment and software, net $ 628.3 $ 641.4 The table below presents depreciation expense included in segment operating profit above for the three and six months ended June 30, 2022 and 2023. Three Months Ended June 30, Six Months Ended June 30, (In millions) 2022 2023 2022 2023 Public Cloud $ 2.1 $ 2.5 $ 4.3 $ 4.6 Private Cloud 42.6 44.9 88.5 88.8 Corporate functions 11.4 9.3 22.6 17.1 Total depreciation expense $ 56.1 $ 56.7 $ 115.4 $ 110.5

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
Goodwill and Intangible Assets (Tables)	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Changes in Carrying Amounts of Goodwill by Reportable Segment	The following table sets forth the changes in the carrying amounts of goodwill by reportable segment. As a result of the January 1, 2023 reorganization, we changed our segment reporting to reflect this reorganization under two reportable segments: Public Cloud and Private Cloud. Accordingly, we reallocated the total consolidated net balance of goodwill as of January 1, 2023 under the new segments, shown below: (In millions) Public Cloud Private Cloud Multicloud Services Apps & Cross Platform OpenStack Public Cloud Total Consolidated Gross goodwill as of December 31, 2022 $ — $ — $ 2,656.6 $ 328.0 $ 52.4 $ 3,037.0 Less: Accumulated impairment charges — — (700.2) (129.3) (52.4) (881.9) Goodwill, net as of December 31, 2022 — — 1,956.4 198.7 — 2,155.1 Reallocation adjustment (1) 594.7 1,560.4 (1,956.4) (198.7) — — Impairment of goodwill — (543.1) — — — (543.1) Foreign currency translation 2.5 3.0 — — — 5.5 Goodwill, net as of June 30, 2023 $ 597.2 $ 1,020.3 $ — $ — $ — $ 1,617.5 Gross goodwill as of June 30, 2023 $ 597.2 $ 1,563.4 $ — $ — $ — $ 2,160.6 Less: Accumulated impairment charges — (543.1) — — — (543.1) Goodwill, net as of June 30, 2023 $ 597.2 $ 1,020.3 $ — $ — $ — $ 1,617.5 (1) Represents the adjustment to reallocate goodwill of the former Multicloud Services and Apps & Cross Platform reportable segments to Public Cloud and Private Cloud reportable segments, using the relative fair value basis, as a result of the January 1, 2023 reorganization.
Schedule of Finite-Lived Intangible Assets Other Than Goodwill	The following table provides information regarding our intangible assets other than goodwill: December 31, 2022 June 30, 2023 (In millions) Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Customer relationships $ 1,928.5 $ (914.9) $ 1,013.6 $ 1,931.4 $ (995.3) $ 936.1 Other 27.7 (22.3) 5.4 27.8 (25.9) 1.9 Total definite-lived intangible assets 1,956.2 (937.2) 1,019.0 1,959.2 (1,021.2) 938.0 Trade name (indefinite-lived) 217.0 — 217.0 217.0 — 217.0 Total intangible assets other than goodwill $ 2,173.2 $ (937.2) $ 1,236.0 $ 2,176.2 $ (1,021.2) $ 1,155.0
Schedule of Indefinite-Lived Intangible Assets Other Than Goodwill	The following table provides information regarding our intangible assets other than goodwill: December 31, 2022 June 30, 2023 (In millions) Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Customer relationships $ 1,928.5 $ (914.9) $ 1,013.6 $ 1,931.4 $ (995.3) $ 936.1 Other 27.7 (22.3) 5.4 27.8 (25.9) 1.9 Total definite-lived intangible assets 1,956.2 (937.2) 1,019.0 1,959.2 (1,021.2) 938.0 Trade name (indefinite-lived) 217.0 — 217.0 217.0 — 217.0 Total intangible assets other than goodwill $ 2,173.2 $ (937.2) $ 1,236.0 $ 2,176.2 $ (1,021.2) $ 1,155.0

Debt (Tables)

Debt (Tables)	6 Months Ended
Debt (Tables)	Jun. 30, 2023
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	Debt consisted of the following: (In millions, except %) December 31, 2022 June 30, 2023 Debt Instrument Maturity Date Interest Rate (1) Amount Interest Rate (1) Amount Term Loan Facility February 15, 2028 7.38% $ 2,259.8 8.00% $ 2,248.3 Revolving Credit Facility August 7, 2025 —% — 8.37% 50.0 3.50% Senior Secured Notes February 15, 2028 3.50% 550.0 3.50% 550.0 5.375% Senior Notes December 1, 2028 5.375% 550.0 5.375% 385.2 Less: unamortized debt issuance costs (30.7) (26.4) Less: unamortized debt discount (10.7) (9.7) Total debt 3,318.4 3,197.4 Less: current portion of debt (23.0) (23.0) Debt, excluding current portion $ 3,295.4 $ 3,174.4 (1) Interest rates are as of each respective balance sheet date.

Share-Based Compensation (Table

Share-Based Compensation (Tables)	6 Months Ended
Share-Based Compensation (Tables)	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Share-Based Compensation Expense Recognized Under the Incentive Plan	Total share-based compensation expense is comprised of the following equity and liability classified award amounts: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2022 2023 2022 2023 Equity classified awards $ 23.1 $ 18.6 $ 40.1 $ 33.3 Liability classified awards — 0.9 — 1.4 Total share-based compensation expense $ 23.1 $ 19.5 $ 40.1 $ 34.7 Total share-based compensation expense recogniz ed was as follows: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2022 2023 2022 2023 Cost of revenue $ 3.4 $ 2.6 $ 6.2 $ 5.4 Selling, general and administrative expenses 19.7 16.9 33.9 29.3 Pre-tax share-based compensation expense 23.1 19.5 40.1 34.7 Less: Income tax benefit (4.8) (4.1) (8.4) (7.3) Total share-based compensation expense, net of tax $ 18.3 $ 15.4 $ 31.7 $ 27.4

Derivatives (Tables)

Derivatives (Tables)	6 Months Ended
Derivatives (Tables)	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Instruments	The key terms of interest rate swaps are presented below: Effective Date Fixed Rate Paid (Received) December 31, 2022 June 30, 2023 Notional Amount (in millions) Status Notional Amount (in millions) Status Maturity Date Entered into December 2016: February 3, 2017 1.9040% $ — Matured $ — Matured February 3, 2022 February 3, 2017 1.9040% — Matured — Matured February 3, 2022 Entered into December 2018: February 3, 2019 2.7490% — Terminated — Terminated November 3, 2023 February 3, 2020 2.7350% — Terminated — Terminated November 3, 2023 February 3, 2021 2.7360% — Terminated — Terminated November 3, 2023 February 3, 2022 2.7800% — Terminated — Terminated November 3, 2023 Entered into February 2021: February 3, 2021 (1.9040)% — Matured — Matured February 3, 2022 February 9, 2021 2.34150% (1) 1,350.0 Active 1,350.0 Active February 9, 2026 Total $ 1,350.0 $ 1,350.0 (1) Fixed rate paid prior to the May 9, 2023 amendment was 2.3820%.
Schedule of Fair Values of Derivative Assets and Liabilities on the Consolidated Balance Sheets	The fair values of our derivatives and their location on the Condensed Consolidated Balance Sheets as of December 31, 2022 and June 30, 2023 were as follows: December 31, 2022 June 30, 2023 (In millions) Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments Location Interest rate swaps Other current assets $ 44.3 $ — $ 54.0 $ — Interest rate swaps Other non-current assets 80.5 — 63.5 — Interest rate swaps Other current liabilities (1) — 17.3 — 17.4 Interest rate swaps Other non-current liabilities (1) — 39.1 — 29.0 Total $ 124.8 $ 56.4 $ 117.5 $ 46.4 (1) The entire balance is comprised of the financing component of the pay-fixed interest rate swap.
Schedule Offsetting Assets Under Master Netting Arrangements	For financial statement presentation purposes, we do not offset assets and liabilities under master netting arrangements and all amounts above are presented on a gross basis. The following table, however, is presented on a net asset and net liability basis: December 31, 2022 June 30, 2023 (In millions) Gross Amounts on Balance Sheet Effects of Counterparty Netting Net Amounts Gross Amounts on Balance Sheet Effects of Counterparty Netting Net Amounts Assets Interest rate swaps $ 124.8 $ (56.4) $ 68.4 $ 117.5 $ (46.4) $ 71.1 Liabilities Interest rate swaps $ 56.4 $ (56.4) $ — $ 46.4 $ (46.4) $ —
Schedule Offsetting Liabilities Under Master Netting Arrangements	For financial statement presentation purposes, we do not offset assets and liabilities under master netting arrangements and all amounts above are presented on a gross basis. The following table, however, is presented on a net asset and net liability basis: December 31, 2022 June 30, 2023 (In millions) Gross Amounts on Balance Sheet Effects of Counterparty Netting Net Amounts Gross Amounts on Balance Sheet Effects of Counterparty Netting Net Amounts Assets Interest rate swaps $ 124.8 $ (56.4) $ 68.4 $ 117.5 $ (46.4) $ 71.1 Liabilities Interest rate swaps $ 56.4 $ (56.4) $ — $ 46.4 $ (46.4) $ —
Schedule of Derivative Instruments, Effect on Comprehensive Income (Loss)	The effect of our derivatives and their location on the Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2022 and 2023 was as follows: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2022 2023 2022 2023 Derivatives not designated as hedging instruments Location Interest rate swaps Interest income (expense) $ (4.6) $ (4.5) $ (9.2) $ (9.1) Derivatives designated as hedging instruments Location Interest rate swaps Interest income (expense) $ — $ 13.5 $ (1.3) $ 25.7

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
Accumulated Other Comprehensive Income (Loss) (Tables)	Jun. 30, 2023
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	Accumulated other comprehensive income (loss) consisted of the following: (In millions) Accumulated Foreign Currency Translation Adjustments Accumulated Gain on Derivative Contracts Accumulated Other Comprehensive Income Balance at March 31, 2022 $ 12.6 $ 36.3 $ 48.9 Foreign currency translation adjustments, net of tax benefit of $1.5 (18.2) — (18.2) Unrealized gain on derivative contracts, net of tax expense of $3.8 — 11.0 11.0 Amount reclassified from Accumulated comprehensive income (loss) into earnings, net of tax benefit of $1.2 (1) — 3.4 3.4 Balance at June 30, 2022 $ (5.6) $ 50.7 $ 45.1 (1) Includes amortization of off-market swap value and accumulated loss at hedge de-designation of $4.6 million for the three months ended June 30, 2022. (In millions) Accumulated Foreign Currency Translation Adjustments Accumulated Gain (Loss) on Derivative Contracts Accumulated Other Comprehensive Income Balance at December 31, 2021 $ 17.2 $ (10.3) $ 6.9 Foreign currency translation adjustments, net of tax benefit of $2.2 (22.8) — (22.8) Unrealized gain on derivative contracts, net of tax expense of $18.4 — 53.3 53.3 Amount reclassified from Accumulated comprehensive income (loss) into earnings, net of tax benefit of $2.7 (1) — 7.7 7.7 Balance at June 30, 2022 $ (5.6) $ 50.7 $ 45.1 (1) Includes interest expense recognized of $1.2 million and amortization of off-market swap value and accumulated loss at hedge de-designation of $9.2 million for the six months ended June 30, 2022. (In millions) Accumulated Foreign Currency Translation Adjustments Accumulated Gain on Derivative Contracts Accumulated Other Comprehensive Income Balance at March 31, 2023 $ (6.6) $ 70.2 $ 63.6 Foreign currency translation adjustments, net of tax expense of $0.5 2.8 — 2.8 Unrealized gain on derivative contracts, net of tax expense of $6.6 — 19.3 19.3 Amount reclassified from Accumulated comprehensive income (loss) into earnings, net of tax expense of $2.2 (1) — (6.8) (6.8) Balance at June 30, 2023 $ (3.8) $ 82.7 $ 78.9 (1) Includes a reduction to interest expense recognized of $13.5 million related to the cash flow hedge gain for the three months ended June 30, 2023, partially offset by an increase to interest expense for the amortization of off-market swap value and accumulated loss at hedge de-designation of $4.5 million. ` (In millions) Accumulated Foreign Currency Translation Adjustments Accumulated Gain on Derivative Contracts Accumulated Other Comprehensive Income Balance at December 31, 2022 $ (10.0) $ 81.4 $ 71.4 Foreign currency translation adjustments, net of tax expense of $0.9 6.2 — 6.2 Unrealized gain on derivative contracts, net of tax expense of $4.7 — 13.7 13.7 Amount reclassified from Accumulated comprehensive income (loss) into earnings, net of tax expense of $4.2 (1) — (12.4) (12.4) Balance at June 30, 2023 $ (3.8) $ 82.7 $ 78.9 (1) Includes a reduction to interest expense recognized of $25.7 million related to the cash flow hedge gain for the six months ended June 30, 2023, partially offset by an increase to interest expense for the amortization of off-market swap value and accumulated loss at hedge de-designation of $9.1 million.

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
Segment Reporting (Tables)	Jun. 30, 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 and six months ended June 30, 2022 and 2023. Three Months Ended June 30, Six Months Ended June 30, (In millions) 2022 2023 2022 2023 Revenue by segment: Public Cloud $ 422.1 $ 434.9 $ 839.1 $ 879.5 Private Cloud 350.1 311.4 708.6 625.5 Total consolidated revenue $ 772.2 $ 746.3 $ 1,547.7 $ 1,505.0 Segment operating profit: Public Cloud $ 29.9 $ 17.0 $ 64.4 $ 41.5 Private Cloud 132.7 86.8 269.5 179.7 Total consolidated segment operating profit 162.6 103.8 333.9 221.2 Corporate functions (64.1) (64.8) (123.3) (131.7) Share-based compensation expense (23.1) (19.5) (40.1) (34.7) Special bonuses and other compensation expense (1) (2.4) (4.2) (5.8) (6.4) Transaction-related adjustments, net (2) (1.9) (1.2) (7.2) (2.5) Restructuring and transformation expenses (3) (24.9) (23.1) (48.2) (48.7) Hosted Exchange incident expenses — (1.7) — (4.9) Amortization of intangible assets (4) (42.2) (41.0) (84.4) (81.9) Impairment of goodwill — — — (543.1) UK office closure (5) — (12.1) — (12.1) Interest expense (50.5) (57.3) (100.6) (114.2) Gain (loss) on investments, net (0.2) 0.1 (0.3) 0.2 Gain on debt extinguishment — 94.9 — 107.7 Other income (expense), net (5.9) 0.2 (9.5) 2.3 Total consolidated loss before income taxes $ (52.6) $ (25.9) $ (85.5) $ (648.8) (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. Beginning in the second quarter of 2023, includes expense related to the one-time grant of long-term incentive bonuses as a component of our annual compensation award process. (2) Includes legal, professional, accounting and other advisory fees related to acquisitions, certain one-time compliance costs related to being a public company, 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, certain facility closure costs, and lease termination expenses. This amount also includes total charges of $1.0 million and $4.2 million for the three and six months ended June 30, 2022, respectively, 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. (5) Expense recognized related to the closure of a UK office that we exited in the second quarter of 2023 prior to the lease end date.
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 and six months ended June 30, 2022 and 2023. Three Months Ended June 30, Six Months Ended June 30, (In millions) 2022 2023 2022 2023 Revenue by segment: Public Cloud $ 422.1 $ 434.9 $ 839.1 $ 879.5 Private Cloud 350.1 311.4 708.6 625.5 Total consolidated revenue $ 772.2 $ 746.3 $ 1,547.7 $ 1,505.0 Segment operating profit: Public Cloud $ 29.9 $ 17.0 $ 64.4 $ 41.5 Private Cloud 132.7 86.8 269.5 179.7 Total consolidated segment operating profit 162.6 103.8 333.9 221.2 Corporate functions (64.1) (64.8) (123.3) (131.7) Share-based compensation expense (23.1) (19.5) (40.1) (34.7) Special bonuses and other compensation expense (1) (2.4) (4.2) (5.8) (6.4) Transaction-related adjustments, net (2) (1.9) (1.2) (7.2) (2.5) Restructuring and transformation expenses (3) (24.9) (23.1) (48.2) (48.7) Hosted Exchange incident expenses — (1.7) — (4.9) Amortization of intangible assets (4) (42.2) (41.0) (84.4) (81.9) Impairment of goodwill — — — (543.1) UK office closure (5) — (12.1) — (12.1) Interest expense (50.5) (57.3) (100.6) (114.2) Gain (loss) on investments, net (0.2) 0.1 (0.3) 0.2 Gain on debt extinguishment — 94.9 — 107.7 Other income (expense), net (5.9) 0.2 (9.5) 2.3 Total consolidated loss before income taxes $ (52.6) $ (25.9) $ (85.5) $ (648.8) (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. Beginning in the second quarter of 2023, includes expense related to the one-time grant of long-term incentive bonuses as a component of our annual compensation award process. (2) Includes legal, professional, accounting and other advisory fees related to acquisitions, certain one-time compliance costs related to being a public company, 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, certain facility closure costs, and lease termination expenses. This amount also includes total charges of $1.0 million and $4.2 million for the three and six months ended June 30, 2022, respectively, 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. (5) Expense recognized related to the closure of a UK office that we exited in the second quarter of 2023 prior to the lease end date.
Schedule of Property, Equipment, and Software, net	Property, equipment and software, net, consisted of the following: (In millions) December 31, June 30, Computers and equipment $ 1,131.2 $ 1,170.7 Software 464.2 468.0 Furniture and fixtures 15.8 16.5 Buildings and leasehold improvements 402.2 410.8 Property, equipment and software, at cost 2,013.4 2,066.0 Less: Accumulated depreciation (1,400.3) (1,440.0) Work in process 15.2 15.4 Property, equipment and software, net $ 628.3 $ 641.4 The table below presents depreciation expense included in segment operating profit above for the three and six months ended June 30, 2022 and 2023. Three Months Ended June 30, Six Months Ended June 30, (In millions) 2022 2023 2022 2023 Public Cloud $ 2.1 $ 2.5 $ 4.3 $ 4.6 Private Cloud 42.6 44.9 88.5 88.8 Corporate functions 11.4 9.3 22.6 17.1 Total depreciation expense $ 56.1 $ 56.7 $ 115.4 $ 110.5

Company Overview, Basis of Pr_3

Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies - Narrative (Details)			3 Months Ended				6 Months Ended
	Mar. 31, 2023 USD ($)	Jan. 01, 2023 USD ($) segment	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) reportingUnit	Jun. 30, 2022 USD ($)	Feb. 09, 2021 USD ($)	Dec. 01, 2020 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of business units \| segment		2
Number of operating segments \| segment		2
Number of reportable segments \| segment		2
Cash and cash equivalents			$ 159,900,000		$ 228,400,000	$ 261,300,000	$ 159,900,000	$ 261,300,000
Impairment of goodwill			$ 0			$ 0	$ 543,100,000	$ 0
Number of reporting units \| reportingUnit							2
Apps & Cross Platform
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impairment of goodwill					$ 129,300,000		$ 0
Private Cloud
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impairment of goodwill	$ 272,300,000	$ 270,800,000		$ 270,800,000			543,100,000
Public Cloud
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impairment of goodwill							$ 0
Percent of fair value exceeding carrying value	14%			14%
5.375% Senior Notes \| Senior notes
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Aggregate principal amount										$ 550,000,000
Interest rate			5.375%		5.375%		5.375%			5.375%
3.50% Senior Secured Notes \| Senior notes
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Aggregate principal amount									$ 550,000,000
Interest rate			3.50%		3.50%		3.50%		3.50%
Term loan facility \| Term Loan Facility \| Line of credit
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Aggregate principal amount			$ 3,183,500,000				$ 3,183,500,000
Revolving Credit Facility \| Line of credit
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Maximum borrowing capacity			375,000,000				375,000,000		$ 375,000,000
Outstanding borrowings			$ 50,000,000				$ 50,000,000
Revolving Credit Facility \| Senior Facilities \| Line of credit
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Interest rate			8.37%				8.37%

Customer Contracts - Schedule o

Customer Contracts - Schedule of Balances Related to Customer Contracts (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 543.8	$ 622.2
Current portion of contract assets	11.5	16
Non-current portion of contract assets	11	10.4
Current portion of deferred revenue	73.5	80.9
Non-current portion of deferred revenue	7.1	8.6
Allowance for doubtful accounts and accrued customer credits	$ 22.9	$ 24.6

Customer Contracts - Narrative

Customer Contracts - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Capitalized Contract Cost [Line Items]
Revenue recognized included in deferred revenue	$ 44.5	$ 20.4	$ 55.1	$ 66.6
Cost To Obtain A Contract
Capitalized Contract Cost [Line Items]
Capitalized contract cost, net	47.1		47.1		$ 55.8
Cost To Fulfill A Contract
Capitalized Contract Cost [Line Items]
Capitalized contract cost, net	$ 15.7		$ 15.7		$ 17.7

Customer Contracts - Schedule_2

Customer Contracts - Schedule of Amortization of Capitalized Contract Costs (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Amortization of capitalized sales commissions
Capitalized Contract Cost [Line Items]
Capitalized contract cost, amortization	$ 9.8	$ 11	$ 20.1	$ 22.3
Amortization of capitalized implementation costs
Capitalized Contract Cost [Line Items]
Capitalized contract cost, amortization	$ 3.4	$ 4.2	$ 7	$ 8.6

Customer Contracts - Remaining

Customer Contracts - Remaining Performance Obligations (Details) $ in Millions	Jun. 30, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 513.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation expected to be recognized, percentage	42%
Revenue, remaining performance obligation, expected timing of satisfaction, period	6 months

Net Loss Per Share - Computatio

Net Loss Per Share - Computation of Basic and Diluted Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Basic and diluted net loss per share:
Net loss attributable to common stockholders, basic	$ (27.2)	$ (40.6)	$ (639.2)	$ (79.1)
Net loss attributable to common stockholders, diluted	$ (27.2)	$ (40.6)	$ (639.2)	$ (79.1)
Weighted average shares outstanding:
Common stock (in shares)	215.1	209.5	214.2	210.5
Number of shares used in per share computations (in shares)	215.1	209.5	214.2	210.5
Net loss per share, basic (in dollars per share)	$ (0.13)	$ (0.19)	$ (2.98)	$ (0.38)
Net loss per share, diluted (in dollars per share)	$ (0.13)	$ (0.19)	$ (2.98)	$ (0.38)

Net Loss Per Share - Narrative

Net Loss Per Share - Narrative (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Anti-dilutive potential common shares excluded from computation of dilutive net income (loss) per share (in shares)	42.8	24.1	42.8	24.1

Property, Equipment and Softw_3

Property, Equipment and Software, net - Schedule of Property, Equipment and Software, net (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property, equipment and software, at cost	$ 2,066	$ 2,013.4
Less: Accumulated depreciation	(1,440)	(1,400.3)
Property, equipment and software, net	641.4	628.3
Computers and equipment
Property, Plant and Equipment [Line Items]
Property, equipment and software, at cost	1,170.7	1,131.2
Software
Property, Plant and Equipment [Line Items]
Property, equipment and software, at cost	468	464.2
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, equipment and software, at cost	16.5	15.8
Buildings and leasehold improvements
Property, Plant and Equipment [Line Items]
Property, equipment and software, at cost	410.8	402.2
Work in process
Property, Plant and Equipment [Line Items]
Work in process	$ 15.4	$ 15.2

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Narrative (Details)	Jan. 01, 2023 segment
Goodwill and Intangible Assets Disclosure [Abstract]
Number of operating segments	2
Number of reportable segments	2

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Changes in Carrying Amounts of Goodwill by Reportable Segment (Details) - USD ($) $ in Millions			3 Months Ended				6 Months Ended
	Mar. 31, 2023	Jan. 01, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Goodwill [Line Items]
Gross goodwill			$ 2,160.6		$ 3,037		$ 2,160.6
Less: Accumulated impairment charges			(543.1)		(881.9)		(543.1)
Goodwill [Roll Forward]
Goodwill, beginning balance		$ 2,155.1		$ 2,155.1			2,155.1
Reallocation adjustments							0
Impairment of goodwill			0			$ 0	(543.1)	$ 0
Foreign currency translation							5.5
Goodwill, ending balance			1,617.5		2,155.1		1,617.5
Public Cloud
Goodwill [Line Items]
Gross goodwill			597.2		0		597.2
Less: Accumulated impairment charges			0		0		0
Goodwill [Roll Forward]
Goodwill, beginning balance		0		0			0
Reallocation adjustments							594.7
Impairment of goodwill							0
Foreign currency translation							2.5
Goodwill, ending balance			597.2		0		597.2
Private Cloud
Goodwill [Line Items]
Gross goodwill			1,563.4		0		1,563.4
Less: Accumulated impairment charges			(543.1)		0		(543.1)
Goodwill [Roll Forward]
Goodwill, beginning balance		0		0			0
Reallocation adjustments							1,560.4
Impairment of goodwill	$ (272.3)	(270.8)		(270.8)			(543.1)
Foreign currency translation							3
Goodwill, ending balance			1,020.3		0		1,020.3
Multicloud Services
Goodwill [Line Items]
Gross goodwill			0		2,656.6		0
Less: Accumulated impairment charges			0		(700.2)		0
Goodwill [Roll Forward]
Goodwill, beginning balance		1,956.4		1,956.4			1,956.4
Reallocation adjustments							(1,956.4)
Impairment of goodwill							0
Foreign currency translation							0
Goodwill, ending balance			0		1,956.4		0
Apps & Cross Platform
Goodwill [Line Items]
Gross goodwill			0		328		0
Less: Accumulated impairment charges			0		(129.3)		0
Goodwill [Roll Forward]
Goodwill, beginning balance		198.7		198.7			198.7
Reallocation adjustments							(198.7)
Impairment of goodwill					(129.3)		0
Foreign currency translation							0
Goodwill, ending balance			0		198.7		0
OpenStack Public Cloud
Goodwill [Line Items]
Gross goodwill			0		52.4		0
Less: Accumulated impairment charges			0		(52.4)		0
Goodwill [Roll Forward]
Goodwill, beginning balance		$ 0		$ 0			0
Reallocation adjustments							0
Impairment of goodwill							0
Foreign currency translation							0
Goodwill, ending balance			$ 0		$ 0		$ 0

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Intangible Assets Other Than Goodwill (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 1,959.2	$ 1,956.2
Accumulated amortization	(1,021.2)	(937.2)
Net carrying amount	938	1,019
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Gross carrying amount	2,176.2	2,173.2
Accumulated amortization	(1,021.2)	(937.2)
Net carrying amount	1,155	1,236
Trade name (indefinite-lived)
Indefinite-lived Intangible Assets [Line Items]
Trade name (indefinite-lived)	217	217
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	1,931.4	1,928.5
Accumulated amortization	(995.3)	(914.9)
Net carrying amount	936.1	1,013.6
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated amortization	(995.3)	(914.9)
Other
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	27.8	27.7
Accumulated amortization	(25.9)	(22.3)
Net carrying amount	1.9	5.4
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated amortization	$ (25.9)	$ (22.3)

Debt - Schedule of Debt (Detail

Debt - Schedule of Debt (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022	Feb. 09, 2021	Dec. 01, 2020
Debt Instrument [Line Items]
Less: unamortized debt issuance costs	$ (26,400,000)	$ (30,700,000)
Less: unamortized debt discount	(9,700,000)	(10,700,000)
Total debt	3,197,400,000	3,318,400,000
Less: current portion of debt	(23,000,000)	(23,000,000)
Debt, excluding current portion	3,174,400,000	$ 3,295,400,000
Line of credit \| Revolving Credit Facility
Debt Instrument [Line Items]
Revolving Credit Facility	$ 50,000,000
Term Loan Facility \| Term loan facility
Debt Instrument [Line Items]
Effective interest rate	8%	7.38%
Amount	$ 2,248,300,000	$ 2,259,800,000
Senior Facilities \| Term loan facility
Debt Instrument [Line Items]
Amount	$ 2,248,300,000
Senior Facilities \| Line of credit \| Revolving Credit Facility
Debt Instrument [Line Items]
Interest rate	8.37%
3.50% Senior Secured Notes \| Senior notes
Debt Instrument [Line Items]
Amount	$ 550,000,000	$ 550,000,000
Interest rate	3.50%	3.50%	3.50%
5.375% Senior Notes \| Senior notes
Debt Instrument [Line Items]
Amount	$ 385,200,000	$ 550,000,000
Interest rate	5.375%	5.375%		5.375%

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($)				1 Months Ended	3 Months Ended		6 Months Ended		80 Months Ended
Debt - Narrative (Details) - USD ($)	Apr. 26, 2023	Feb. 09, 2021	Dec. 01, 2020	Aug. 10, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Feb. 15, 2028	Dec. 31, 2022
Debt Instrument [Line Items]
Repayment of debt							$ 67,000,000	$ 11,500,000
Gain on debt extinguishment					$ 94,900,000	$ 0	107,700,000	$ 0
One- Month Duration SOFR
Debt Instrument [Line Items]
Credit spread adjustment	0.11%
Three- Month Duration SOFR
Debt Instrument [Line Items]
Credit spread adjustment	0.26%
Six- Months Duration SOFR
Debt Instrument [Line Items]
Credit spread adjustment	0.43%
Fed Funds Effective Rate Overnight Index Swap Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	0.50%
Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1%
Term loan facility
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate floor	0.75%
Interest payment period (not exceed)	90 days
Term loan facility \| Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	2.75%
Term loan facility \| Base rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.75%
Line of credit
Debt Instrument [Line Items]
Letters of credit outstanding, amount					3,500,000		3,500,000
Line of credit \| Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 375,000,000			375,000,000		375,000,000
Debt instrument, basis spread on variable rate floor	1%
Unused commitment fee percentage		0.50%
Borrowings from long-term lines of credit					50,000,000		50,000,000
Outstanding borrowings					50,000,000		50,000,000
Remaining commitments					$ 325,000,000		$ 325,000,000
Line of credit \| Revolving Credit Facility \| Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	3%
Line of credit \| Revolving Credit Facility \| Base rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	2%
Term Loan Facility \| Term loan facility
Debt Instrument [Line Items]
Debt instrument, term		7 years
Aggregate principal amount		$ 2,300,000,000
Effective interest rate					8%		8%			7.38%
Fair value of debt					$ 1,045,500,000		$ 1,045,500,000
Term Loan Facility \| Term loan facility \| Forecast \| Subsequent event
Debt Instrument [Line Items]
Quarterly principal payment									$ 5,800,000
3.50% Senior Secured Notes \| Senior notes
Debt Instrument [Line Items]
Aggregate principal amount		$ 550,000,000
Interest rate		3.50%			3.50%		3.50%			3.50%
Fair value of debt					$ 247,500,000		$ 247,500,000
Redemption price, percentage		101%
3.50% Senior Secured Notes \| Senior notes \| Prior to February 15, 2024
Debt Instrument [Line Items]
Redemption price, percentage		100%
Percent of redeemable debt (up to)		40%
3.50% Senior Secured Notes \| Senior notes \| From February 15, 2024 to February 14, 2025
Debt Instrument [Line Items]
Redemption price, percentage		101.75%
3.50% Senior Secured Notes \| Senior notes \| From February 15, 2025 to February 14, 2026
Debt Instrument [Line Items]
Redemption price, percentage		100.875%
3.50% Senior Secured Notes \| Senior notes \| from February 15, 2026 and thereafter
Debt Instrument [Line Items]
Redemption price, percentage		100%
3.50% Senior Secured Notes \| Senior notes \| Commencing with February 9
Debt Instrument [Line Items]
Redemption price, percentage		103%
Percent of redeemable debt (up to)		10%
Senior Facilities \| Line of credit \| Revolving Credit Facility
Debt Instrument [Line Items]
Interest rate					8.37%		8.37%
Debt instrument, leverage ratio, maximum		5
Debt instrument, covenant, undrawn letters of credit and cash collateralized letters of credit excluded from threshold trigger		$ 25,000,000
Debt instrument, covenant, percentage of outstanding borrowings trigger, minimum		35%
Forty Percent Of 3.50% Senior Secured Notes Due 2028 \| Senior notes \| Prior to February 15, 2024
Debt Instrument [Line Items]
Redemption price, percentage		103.50%
5.375% Senior Notes \| Senior notes
Debt Instrument [Line Items]
Aggregate principal amount			$ 550,000,000
Interest rate			5.375%		5.375%		5.375%			5.375%
Percent of redeemable debt (up to)			40%
Principal amount repurchased and surrendered for cancellation					$ 142,100,000		$ 164,800,000
Repayment of debt					46,800,000		56,800,000
Accrued interest increase					1,000,000		1,300,000
Gain on debt extinguishment					94,900,000		107,700,000
Write-off of associated unamortized deferred financing fees					1,300,000		1,600,000
Fair value					$ 115,600,000		$ 115,600,000
Debt instrument, aggregate principal amount subject to repurchase under tender offer			$ 57,100,000
5.375% Senior Notes \| Senior notes \| Prior to December 1, 2023
Debt Instrument [Line Items]
Redemption price, percentage			100%
5.375% Senior Notes \| Senior notes \| December 1, 2023 to November 30, 2024
Debt Instrument [Line Items]
Redemption price, percentage			102.688%
5.375% Senior Notes \| Senior notes \| December 1, 2024 to November 30, 2025
Debt Instrument [Line Items]
Redemption price, percentage			101.344%
5.375% Senior Notes \| Senior notes \| December 1, 2025 and thereafter
Debt Instrument [Line Items]
Redemption price, percentage			100%
5.375% Senior Notes \| Senior notes \| Upon change of control
Debt Instrument [Line Items]
Redemption price, percentage			101%
5.375% Senior Notes \| Senior notes \| Subsequent event
Debt Instrument [Line Items]
Repayments of senior debt				$ 20,300,000
Interest payment				$ 300,000
Forty Percent Of Senior Notes, 5.375%, Due 2028 \| Senior notes \| Prior to December 1, 2023
Debt Instrument [Line Items]
Redemption price, percentage			105.375%

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Hosted Exchange Incident
Other Commitments [Line Items]
Loss Contingency, Loss in Period	$ 1.7		$ 4.9
Corporate And Reconciling Items
Other Commitments [Line Items]
Hosted exchange incident expenses	$ 1.7	$ 0	$ 4.9	$ 0

Share Repurchase Program (Detai

Share Repurchase Program (Details) - USD ($)	3 Months Ended		6 Months Ended
Share Repurchase Program (Details) - USD ($)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Mar. 03, 2022
Share-Based Payment Arrangement [Abstract]
Stock repurchase program, authorized amount					$ 75,000,000
Treasury stock value		$ 26,900,000		$ 31,000,000
Repurchase of common stock (in shares)	0	2,700,000	0	3,100,000
Stock repurchase program	$ 44,000,000		$ 44,000,000

Share-Based Compensation - Narr

Share-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2023	Apr. 21, 2023	Apr. 20, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 116.6
2020 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares available for issuance (in shares)		57,900,000	50,000,000
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of awards granted in period (in shares)	26,100,000
Weighted average grant date fair value, RSUs granted during period (in dollars per share)	$ 2.21
Vesting period	3 years
Phantom Share Units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of awards granted in period (in shares)	2,800,000
Weighted average grant date fair value, RSUs granted during period (in dollars per share)	$ 1.90
Vesting period	3 years
Long-Term Incentive Cash Units (LTIC)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of awards granted in period (in shares)	5,500,000
Weighted average grant date fair value, RSUs granted during period (in dollars per share)	$ 1.24

Share-Based Compensation - Sche

Share-Based Compensation - Schedule of Share Based Compensation Expense Equity and Liability Awards Amounts (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 19.5	$ 23.1	$ 34.7	$ 40.1
Equity classified awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	18.6	23.1	33.3	40.1
Liability classified awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 0.9	$ 0	$ 1.4	$ 0

Share-Based Compensation - Sc_2

Share-Based Compensation - Schedule of Share Based Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pre-tax share-based compensation expense	$ 19.5	$ 23.1	$ 34.7	$ 40.1
Less: Income tax benefit	(4.1)	(4.8)	(7.3)	(8.4)
Total share-based compensation expense, net of tax	15.4	18.3	27.4	31.7
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pre-tax share-based compensation expense	2.6	3.4	5.4	6.2
Selling, general and administrative expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pre-tax share-based compensation expense	$ 16.9	$ 19.7	$ 29.3	$ 33.9

Derivatives - Narrative (Detail

Derivatives - Narrative (Details)	3 Months Ended		6 Months Ended
Derivatives - Narrative (Details)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	May 09, 2023	Dec. 31, 2022 USD ($)	Feb. 12, 2021 USD ($)	Jan. 31, 2021 USD ($)	Jan. 09, 2020 USD ($)	Dec. 31, 2016 instrument
Derivative [Line Items]
Accumulated other comprehensive income	$ (78,900,000)		$ (78,900,000)			$ (71,400,000)
Interest expense	(57,300,000)	$ (50,500,000)	(114,200,000)	$ (100,600,000)
Cash flow hedge gain expected to be reclassified as a reduction to interest expense over the next twelve months			50,500,000
Derivatives designated as hedging instruments
Derivative [Line Items]
Liabilities	46,400,000		46,400,000			56,400,000
Interest rate swaps
Derivative [Line Items]
Liabilities	46,400,000		46,400,000			56,400,000
Notional amount	$ 1,350,000,000		$ 1,350,000,000			$ 1,350,000,000	$ 900,000,000
Accumulated other comprehensive income								$ 51,600,000
Derivative, fixed interest rate					2.3415%		2.382%
Interest rate swaps \| Secured Overnight Financing Rate (SOFR)
Derivative [Line Items]
Derivative, floor interest rate					0.75%		0.75%
Interest rate swaps \| Three- Month LIBOR
Derivative [Line Items]
Derivative, floor interest rate							0.75%
Interest rate swaps \| Cash Flow Hedging \| Derivatives designated as hedging instruments
Derivative [Line Items]
Liabilities									$ 39,900,000
Receive fixed interest rate swap
Derivative [Line Items]
Notional amount							$ 900,000,000
Number of derivative instruments \| instrument										2
Pay-fixed interest rate swap
Derivative [Line Items]
Notional amount							$ 1,350,000,000

Derivatives - Interest Rate Swa

Derivatives - Interest Rate Swaps Outstanding (Details) - USD ($)	Jun. 30, 2023	May 09, 2023	Dec. 31, 2022	Feb. 12, 2021
Interest rate swaps
Derivative [Line Items]
Fixed Rate Paid (Received)		2.3415%		2.382%
Notional amount	$ 1,350,000,000		$ 1,350,000,000	$ 900,000,000
Interest Rate Swap 1 - Entered in December 2016
Derivative [Line Items]
Fixed Rate Paid (Received)			1.904%
Notional amount	0		$ 0
Interest Rate Swap 2 - Entered in December 2016
Derivative [Line Items]
Fixed Rate Paid (Received)			1.904%
Notional amount	0		$ 0
Interest Rate Swap 3 - Entered in December 2018
Derivative [Line Items]
Fixed Rate Paid (Received)			2.749%
Notional amount	0		$ 0
Interest Rate Swap 4 - Entered in December 2018
Derivative [Line Items]
Fixed Rate Paid (Received)			2.735%
Notional amount	0		$ 0
Interest Rate Swap 5 - Entered in December 2018
Derivative [Line Items]
Fixed Rate Paid (Received)			2.736%
Notional amount	0		$ 0
Interest Rate Swap 6 - Entered in December 2018
Derivative [Line Items]
Fixed Rate Paid (Received)			2.78%
Notional amount	0		$ 0
Interest Rate Swap 7 - Entered in February 2021
Derivative [Line Items]
Fixed Rate Paid (Received)			(1.904%)
Notional amount	$ 0		$ 0
Interest Rate Swap 8 - Entered in February 2021
Derivative [Line Items]
Fixed Rate Paid (Received)	2.3415%			2.382%
Notional amount	$ 1,350,000,000		$ 1,350,000,000

Derivatives - Schedule of Fair

Derivatives - Schedule of Fair Values of Derivatives on the Consolidated Balance Sheets (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Interest rate swaps
Derivatives, Fair Value [Line Items]
Assets	$ 117.5	$ 124.8
Liabilities	46.4	56.4
Derivatives designated as hedging instruments
Derivatives, Fair Value [Line Items]
Assets	117.5	124.8
Liabilities	46.4	56.4
Derivatives designated as hedging instruments \| Other current assets \| Interest rate swaps
Derivatives, Fair Value [Line Items]
Assets	54	44.3
Liabilities	0	0
Derivatives designated as hedging instruments \| Other non-current assets \| Interest rate swaps
Derivatives, Fair Value [Line Items]
Assets	63.5	80.5
Liabilities	0	0
Derivatives designated as hedging instruments \| Other current liabilities \| Interest rate swaps
Derivatives, Fair Value [Line Items]
Assets	0	0
Liabilities	17.4	17.3
Derivatives designated as hedging instruments \| Other non-current liabilities \| Interest rate swaps
Derivatives, Fair Value [Line Items]
Assets	0	0
Liabilities	$ 29	$ 39.1

Derivatives - Derivatives Prese

Derivatives - Derivatives Presented on a Net Asset and Net Liability basis (Details) - Interest rate swaps - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Assets
Gross Amounts on Balance Sheet	$ 117.5	$ 124.8
Effects of Counterparty Netting	(46.4)	(56.4)
Net Amounts	71.1	68.4
Liabilities
Gross Amounts on Balance Sheet	46.4	56.4
Effects of Counterparty Netting	(46.4)	(56.4)
Net Amounts	$ 0	$ 0

Derivatives - Effect of Derivat

Derivatives - Effect of Derivatives on the Consolidated Statements of Comprehensive Income (Loss) (Details) - Interest income (expense) - Interest rate swaps - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivatives not designated as hedging instruments	$ (4.5)	$ (4.6)	$ (9.1)	$ (9.2)
Derivatives designated as hedging instruments	$ 13.5	$ 0	$ 25.7	$ (1.3)

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 24.4	$ 1,344.3	$ 629.5	$ 1,327.4
Foreign currency translation adjustments, net of tax benefit	2.8	(18.2)	6.2	(22.8)
Unrealized gain on derivative contracts, net of tax expense	19.3	11	13.7	53.3
Amount reclassified from Accumulated comprehensive income (loss) into earnings, net of tax benefit	(6.8)	3.4	(12.4)	7.7
Ending balance	31.9	1,298.4	31.9	1,298.4
Foreign currency translation adjustment, tax (benefit) expense	0.5	(1.5)	0.9	(2.2)
Unrealized gain (loss) on derivative contract, tax expense (benefit)	6.6	3.8	4.7	18.4
Amount reclassified from Accumulated comprehensive income (loss) into earnings, net of tax (benefit) expense	2.2	(1.2)	4.2	(2.7)
Interest expense	57.3	50.5	114.2	100.6
Reclassification out of Accumulated Other Comprehensive Income
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Amortization of off-market swap	4.5	4.6	9.1	9.2
Interest expense	13.5		25.7	1.2
Accumulated Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(6.6)	12.6	(10)	17.2
Foreign currency translation adjustments, net of tax benefit	2.8	(18.2)	6.2	(22.8)
Unrealized gain on derivative contracts, net of tax expense	0	0	0	0
Amount reclassified from Accumulated comprehensive income (loss) into earnings, net of tax benefit	0	0	0	0
Ending balance	(3.8)	(5.6)	(3.8)	(5.6)
Accumulated Gain on Derivative Contracts
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	70.2	36.3	81.4	(10.3)
Foreign currency translation adjustments, net of tax benefit	0	0	0	0
Unrealized gain on derivative contracts, net of tax expense	19.3	11	13.7	53.3
Amount reclassified from Accumulated comprehensive income (loss) into earnings, net of tax benefit	(6.8)	3.4	(12.4)	7.7
Ending balance	82.7	50.7	82.7	50.7
Accumulated Other Comprehensive Income
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	63.6	48.9	71.4	6.9
Ending balance	$ 78.9	$ 45.1	$ 78.9	$ 45.1

Related Party Transactions - Na

Related Party Transactions - Narrative (Details) - Senior Facilities - Term loan facility $ in Millions	Jun. 30, 2023 USD ($)
Related Party Transaction [Line Items]
Principal balance	$ 2,248.3
Affiliates of ABRY \| Affiliated entity
Related Party Transaction [Line Items]
Principal balance	$ 58.7
Percentage of debt due to related party	2.60%

Segment Reporting - Narrative (

Segment Reporting - Narrative (Details)	Jan. 01, 2023 segment
Segment Reporting [Abstract]
Number of business units	2
Number of operating segments	2
Number of reportable segments	2

Segment Reporting - Reconciliat

Segment Reporting - Reconciliation of Revenue and Gross Profits from Segments to Consolidated (Details) - USD ($) $ in Millions			3 Months Ended			6 Months Ended
	Mar. 31, 2023	Jan. 01, 2023	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue			$ 746.3		$ 772.2	$ 1,505	$ 1,547.7
Income (loss) from operations			(63.8)		4	(644.8)	24.9
Share-based compensation expense			(19.5)		(23.1)	(34.7)	(40.1)
Amortization of intangible assets			(41)		(42.2)	(81.9)	(84.4)
Impairment of goodwill			0		0	(543.1)	0
UK office closure			(12.1)		0	(12.1)	0
Interest expense			(57.3)		(50.5)	(114.2)	(100.6)
Gain (loss) on investments, net			0.1		(0.2)	0.2	(0.3)
Gain on debt extinguishment			94.9		0	107.7	0
Other income (expense), net			0.2		(5.9)	2.3	(9.5)
Total consolidated loss before income taxes			(25.9)		(52.6)	(648.8)	(85.5)
Employee Severance \| July 2021 Restructuring Plan
Segment Reporting, Revenue Reconciling Item [Line Items]
Restructuring charges					1		4.2
Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Income (loss) from operations			103.8		162.6	221.2	333.9
Corporate And Reconciling Items
Segment Reporting, Revenue Reconciling Item [Line Items]
Income (loss) from operations			64.8		64.1	131.7	123.3
Share-based compensation expense			(19.5)		(23.1)	(34.7)	(40.1)
Special bonuses and other compensation expense			(4.2)		(2.4)	(6.4)	(5.8)
Transaction-related adjustments, net			(1.2)		(1.9)	(2.5)	(7.2)
Restructuring and transformation expenses			(23.1)		(24.9)	(48.7)	(48.2)
Hosted Exchange incident expenses			(1.7)		0	(4.9)	0
Public Cloud
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue			434.9		422.1	879.5	839.1
Impairment of goodwill						0
Public Cloud \| Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Income (loss) from operations			17		29.9	41.5	64.4
Private Cloud
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue			311.4		350.1	625.5	708.6
Impairment of goodwill	$ (272.3)	$ (270.8)		$ (270.8)		(543.1)
Private Cloud \| Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Income (loss) from operations			$ 86.8		$ 132.7	$ 179.7	$ 269.5

Segment Reporting - Schedule of

Segment Reporting - Schedule of Depreciation (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue, Major Customer [Line Items]
Total depreciation expense	$ 56.7	$ 56.1	$ 110.5	$ 115.4
Public Cloud
Revenue, Major Customer [Line Items]
Total depreciation expense	2.5	2.1	4.6	4.3
Private Cloud
Revenue, Major Customer [Line Items]
Total depreciation expense	44.9	42.6	88.8	88.5
Corporate functions
Revenue, Major Customer [Line Items]
Total depreciation expense	$ 9.3	$ 11.4	$ 17.1	$ 22.6