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Sale of Receivables	6 Months Ended
Sale of Receivables	Jun. 30, 2024
Transfers and Servicing [Abstract]
Sale of Receivables	Sale of Receivables On September 29, 2023, Rackspace US, Inc. and Rackspace Receivables II, LLC, a bankruptcy-remote special purpose vehicle (“SPV”), each an indirect subsidiary of the company, entered into an accounts receivable purchase agreement with PNC Bank, National Association (“PNC”) and other parties thereto. On February 12, 2024, the accounts receivable purchase agreement was amended to include certain international subsidiaries of the company as parties to the agreement and Rackspace Receivables Canada Limited, a Canadian indirect subsidiary of the company, was established as a SPV. In connection with accounts receivable sold during the three and six months ended June 30, 2024, we recorded $5.1 million and $10.9 million of expense, respectively, in “Other income (expense), net” in the Condensed Consolidated Statements of Comprehensive Income (Loss). This expense consisted of $5.0 million and $10.3 million of yield charges and fees for the three and six months ended June 30, 2024, respectively, and $0.1 million and $0.6 million of upfront transaction costs associated with the execution of the agreement for the three and six months ended June 30, 2024, respectively. The outstanding portfolio of sold accounts receivable derecognized from our Condensed Consolidated Balance Sheet as of December 31, 2023 and June 30, 2024 was $223.8 million and $205.8 million, respectively. The SPVs hold unsold accounts receivable of $127.3 million as of June 30, 2024 that are pledged as collateral to PNC.

- Definition

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

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+ Details

Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

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, 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.


(In millions)	Accumulated Foreign Currency Translation Adjustments		Accumulated Gain on Derivative Contracts		Accumulated Other Comprehensive Income
Balance at March 31, 2024	$	(5.7)	$	64.3	$	58.6
Foreign currency translation adjustments, net of tax expense of $0.1	(0.8)		—		(0.8)
Unrealized gain on derivative contracts, net of tax expense of $1.6	—		4.5		4.5
Amount reclassified from Accumulated comprehensive income (loss) into earnings, net of tax expense of $3.8 (1)	—		(11.1)		(11.1)
Balance at June 30, 2024	$	(6.5)	$	57.7	$	51.2

(1) Includes a reduction to interest expense recognized of $14.9 million related to the cash flow hedge gain for the three months ended June 30, 2024.


(In millions)	Accumulated Foreign Currency Translation Adjustments		Accumulated Gain on Derivative Contracts		Accumulated Other Comprehensive Income
Balance at December 31, 2023	$	(2.0)	$	62.3	$	60.3
Foreign currency translation adjustments, net of tax benefit of $0.1	(4.5)		—		(4.5)
Unrealized gain on derivative contracts, net of tax expense of $6.1	—		17.6		17.6
Amount reclassified from Accumulated comprehensive income (loss) into earnings, net of tax expense of $7.6 (1)	—		(22.2)		(22.2)
Balance at June 30, 2024	$	(6.5)	$	57.7	$	51.2

(1) Includes a reduction to interest expense recognized of $29.8 million related to the cash flow hedge gain for the six months ended June 30, 2024.

Derivatives - Interest Rate Swaps Outstanding (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023	May 09, 2023	Feb. 12, 2021
Interest rate swaps
Derivative [Line Items]
Notional amount	$ 1,350,000,000	$ 1,350,000,000		$ 900,000,000
Interest Rate Swap 1 - Entered in February 3 2019
Derivative [Line Items]
Fixed Rate Paid (Received)	2.749%
Notional amount	$ 0	0
Interest Rate Swap 2 - Entered in February 3 2020
Derivative [Line Items]
Fixed Rate Paid (Received)	2.735%
Notional amount	$ 0	0
Interest Rate Swap 3 - Entered in February 3 2021
Derivative [Line Items]
Fixed Rate Paid (Received)	2.736%
Notional amount	$ 0	0
Interest Rate Swap 4 - Entered in February 3 2022
Derivative [Line Items]
Fixed Rate Paid (Received)	2.78%
Notional amount	$ 0	0
Interest Rate Swap 5 - Entered in February 9 2021
Derivative [Line Items]
Fixed Rate Paid (Received)	2.3415%		2.3415%	2.382%
Notional amount	$ 1,350,000,000	$ 1,350,000,000

Property, Equipment and Software, net - Narrative (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Mar. 31, 2024	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Property value	$ 16.9
Gross proceeds from sale	17.5
Payments for brokerage fees and professional fees	0.6
Proceeds from sale of headquarters	$ 16.9			$ 16.9	$ 0.0
Loss on contract termination		$ 0.0	$ 12.1	$ 0.0	$ 12.1

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 190.2	$ 196.8
Accounts receivable, net of allowance for credit losses and accrued customer credits of $20.1 and $25.8, respectively	322.8	339.7
Prepaid expenses	86.6	87.4
Other current assets	96.7	114.2
Total current assets	696.3	738.1
Property, equipment and software, net	612.2	608.8
Goodwill, net	877.7	1,452.4
Intangible assets, net	921.5	1,019.0
Operating right-of-use assets	144.4	126.3
Other non-current assets	141.6	151.6
Total assets	3,393.7	4,096.2
Current liabilities:
Accounts payable and accrued expenses	401.9	432.7
Accrued compensation and benefits	72.3	72.2
Deferred revenue	72.5	78.8
Debt	54.0	23.0
Accrued interest	8.3	20.5
Operating lease liabilities	58.7	66.0
Finance lease liabilities	50.8	55.8
Financing obligations	16.9	14.0
Other current liabilities	36.0	36.5
Total current liabilities	771.4	799.5
Non-current liabilities:
Debt	2,816.0	2,839.6
Operating lease liabilities	90.3	74.6
Finance lease liabilities	295.0	308.0
Financing obligations	41.3	52.4
Deferred income taxes	35.6	79.2
Other non-current liabilities	100.3	97.4
Total liabilities	4,149.9	4,250.7
Commitments and Contingencies (Note 8)
Stockholders' deficit:
Preferred stock, $0.01 par value per share: 5.0 shares authorized; no shares issued or outstanding	0.0	0.0
Common stock, $0.01 par value per share: 1,495.0 shares authorized; 220.5 and 228.7 shares issued; 217.4 and 225.6 shares outstanding, respectively	2.3	2.2
Additional paid-in capital	2,661.1	2,638.2
Accumulated other comprehensive income	51.2	60.3
Accumulated deficit	(3,439.8)	(2,824.2)
Treasury stock, at cost; 3.1 shares held	(31.0)	(31.0)
Total stockholders' deficit	(756.2)	(154.5)
Total liabilities and stockholders' deficit	$ 3,393.7	$ 4,096.2

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, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivatives not designated as hedging instruments	$ 0.0	$ (4.5)	$ 0.0	$ (9.1)
Derivatives designated as hedging instruments	$ 14.9	$ 13.5	$ 29.8	$ 25.7

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Millions	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net loss	$ 25.0	$ (27.2)	$ (615.6)	$ (639.2)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

Net Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Net Earnings (Loss) Per Share

Basic net earnings (loss) per share is calculated by dividing net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net earnings (loss) per share is calculated based on the weighted average number of shares of common stock plus the dilutive effect of potential common share equivalents outstanding during the period as determined under the treasury stock method.

The following table sets forth the computation of basic and diluted net earnings (loss) per share:


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions, except per share data)	2023		2024		2023		2024
Basic net earnings (loss) per share:
Net income (loss) attributable to common stockholders	$	(27.2)	$	25.0	$	(639.2)	$	(615.6)
Weighted average shares outstanding:
Common stock	215.1		224.5		214.2		222.2
Number of shares used in per share computations	215.1		224.5		214.2		222.2
Net earnings (loss) per share	$	(0.13)	$	0.11	$	(2.98)	$	(2.77)

Diluted net earnings (loss) per share:
Net income (loss) attributable to common stockholders	$	(27.2)	$	25.0	$	(639.2)	$	(615.6)
Weighted average shares outstanding:
Common stock	215.1		224.5		214.2		222.2
Effect of dilutive securities	—		5.1		—		—
Number of shares used in per share computations	215.1		229.6		214.2		222.2
Net earnings (loss) per share	$	(0.13)	$	0.11	$	(2.98)	$	(2.77)

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. We excluded 42.8 million and 44.3 million potential common shares from the computation of dilutive loss per share for the three months ended June 30, 2023 and 2024, respectively, and 42.8 million and 33.7 million for the six months ended June 30, 2023 and 2024, respectively, because the effect would have been anti-dilutive.

Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2024
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, 2024, and for the three and six months ended June 30, 2023 and 2024, 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, 2023 as filed with the SEC on March 15, 2024 ("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, 2024, our results of operations and stockholders' equity (deficit) for the three and six months ended June 30, 2023 and 2024, and our cash flows for the six months ended June 30, 2023 and 2024. The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2024, 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. In connection with the debt refinancing transactions that were completed in March and April 2024, as further described in Note 7, “Debt”, we updated our internal forecasts. Our updated internal forecasts considered our year-to-date operating performance, current customer bookings and revised expectations based on current performance, revisions to our expected growth and timing of such growth based on current and expected performance, current customer retention rates, revisions to the timing of the expected effects of our strategic initiatives and overall related risks, including macroeconomic factors, to achieving our forecasts. Our Board of Directors reviewed and approved our internal budget for fiscal year 2024 on February 28, 2024. As of February 29, 2024, we assessed our Board approved 2024 internal budget along with 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 our current and forecasted operating margins and cash flows, budgeted-to-actual performance, timing of the expected effects of our strategic initiatives, overall change in economic climate, changes in the industry and competitive environment, changes to our risk-adjusted discount rates 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 February 29, 2024. 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. Prior to October 1, 2023, we had 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. As of October 1, 2023, we reassessed our reporting unit structure and aggregated the OpenStack Public Cloud reporting unit into our Private Cloud reporting unit. We currently have two reporting units: Public Cloud and Private Cloud. For the interim quantitative goodwill impairment analyses performed, 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 and considerations regarding revenue growth rates, projected gross profit margins, projected operating costs, projected capital expenditures, risk-adjusted discount rates, terminal period growth rates, and economic market trends. 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. 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 analysis as of February 29, 2024 indicated an impairment of goodwill within our Public Cloud and Private Cloud reporting units of $385.4 million and $187.8 million, respectively. We recorded these non-cash impairment charges within "Impairment of goodwill" in our Condensed Consolidated Statements of Comprehensive Income (Loss) in the first quarter of 2024. 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. Due to the factors discussed in the goodwill analysis above and prior to testing our goodwill for impairment, we performed a quantitative assessment of our indefinite-lived intangible asset as of February 29, 2024. The quantitative assessment performed as of February 29, 2024 indicated the estimated fair value of the Rackspace trade name was less than its carrying value. As a result, we recorded a $20.0 million non-cash impairment charge which is included in "Impairment of assets, net" in our Condensed Consolidated Statements of Comprehensive Income (Loss) in the first quarter of 2024. 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 for the trade name, estimation of future revenue growth rates, projected gross profit margins, projected operating costs, projected capital expenditures, which are dependent on internal cash flow forecasts, estimation of the terminal growth rates and determination of risk-adjusted 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 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	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. In conjunction with the goodwill impairment analyses as of January 1, 2023, March 31, 2023, and February 29, 2024, we performed recoverability tests of our long-lived assets, including finite-lived intangible assets, by comparing the net book value of our long-lived assets or asset groups, to the future undiscounted net cash flows attributable to such assets, which did not result in any impairment charges.
Net Loss Per Share	Basic net earnings (loss) per share is calculated by dividing net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net earnings (loss) per share is calculated based on the weighted average number of shares of common stock plus the dilutive effect of potential common share equivalents outstanding during the period as determined under the treasury stock method. 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.
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, FLSO Term Loan Facility, and FLFO 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. 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 for income taxes" under the portfolio approach.

Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2024
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. 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, 2024, and for the three and six months ended June 30, 2023 and 2024, 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, 2023 as filed with the SEC on March 15, 2024 ("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, 2024, our results of operations and stockholders' equity (deficit) for the three and six months ended June 30, 2023 and 2024, and our cash flows for the six months ended June 30, 2023 and 2024. The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2024, 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, 2024, we had $2,483.7 million aggregate principal amount outstanding under our debt instruments, which are comprised of the first lien first out senior secured term loan facility (the “FLFO Term Loan Facility”), the first lien second out senior secured term loan facility (the “FLSO Term Loan Facility”), the first lien term loan facility (the "Term Loan Facility"), 3.50% FLSO Senior Secured Notes due 2028 (the “3.50% FLSO Senior Secured Notes”), 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 the senior secured first lien first out revolving credit facility (the " New Revolving Credit Facility"). As of June 30, 2024, the New Revolving Credit Facility provided for up to $375.0 million of borrowings, none of which was drawn and outstanding as of June 30, 2024. 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 $190.2 million as of June 30, 2024, 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 New 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, 2024, except as described below. Change in Accounting Estimate In the first quarter of 2024, we completed an assessment of the useful lives of certain assets within the “Computers and equipment” asset class. The timing of this review was based on a combination of factors accumulating over time that provided the company with updated information to make a better estimate on the economic lives of certain property and equipment. These factors included changes in our business model and recent technological advances that have increased efficiencies in how we operate and manage customer gear. The assessment resulted in an increase in the estimated useful life range of the “Computers and equipment” asset class from three-to-five years to five-to-seven years. This change in accounting estimate took effect at the start of the first quarter of 2024. The impact of this change was a reduction in depreciation expense of $12.6 million and $24.8 million and an increase of $0.05 and $0.11 net basic earnings per share compared to previous estimates for the three and six months ended June 30, 2024, respectively. 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. In connection with the debt refinancing transactions that were completed in March and April 2024, as further described in Note 7, “Debt”, we updated our internal forecasts. Our updated internal forecasts considered our year-to-date operating performance, current customer bookings and revised expectations based on current performance, revisions to our expected growth and timing of such growth based on current and expected performance, current customer retention rates, revisions to the timing of the expected effects of our strategic initiatives and overall related risks, including macroeconomic factors, to achieving our forecasts. Our Board of Directors reviewed and approved our internal budget for fiscal year 2024 on February 28, 2024. As of February 29, 2024, we assessed our Board approved 2024 internal budget along with 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 our current and forecasted operating margins and cash flows, budgeted-to-actual performance, timing of the expected effects of our strategic initiatives, overall change in economic climate, changes in the industry and competitive environment, changes to our risk-adjusted discount rates 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 February 29, 2024. 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. Due to the change in our segment reporting and the allocation of goodwill from our former reporting units to the Public Cloud and Private Cloud reporting units, we completed a quantitative goodwill impairment analysis both prior and subsequent to the aforementioned change. 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. Prior to October 1, 2023, we had 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. As of October 1, 2023, we reassessed our reporting unit structure and aggregated the OpenStack Public Cloud reporting unit into our Private Cloud reporting unit. We currently have two reporting units: Public Cloud and Private Cloud. For the interim quantitative goodwill impairment analyses performed, 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 and considerations regarding revenue growth rates, projected gross profit margins, projected operating costs, projected capital expenditures, risk-adjusted discount rates, terminal period growth rates, and economic market trends. 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. 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 analysis as of February 29, 2024 indicated an impairment of goodwill within our Public Cloud and Private Cloud reporting units of $385.4 million and $187.8 million, respectively. We recorded these non-cash impairment charges within "Impairment of goodwill" in our Condensed Consolidated Statements of Comprehensive Income (Loss) in the first quarter of 2024. 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 Income (Loss) in the first quarter of 2023. See Note 6, "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. Due to the factors discussed in the goodwill analysis above and prior to testing our goodwill for impairment, we performed a quantitative assessment of our indefinite-lived intangible asset as of February 29, 2024. The quantitative assessment performed as of February 29, 2024 indicated the estimated fair value of the Rackspace trade name was less than its carrying value. As a result, we recorded a $20.0 million non-cash impairment charge which is included in "Impairment of assets, net" in our Condensed Consolidated Statements of Comprehensive Income (Loss) in the first quarter of 2024. 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 for the trade name, estimation of future revenue growth rates, projected gross profit margins, projected operating costs, projected capital expenditures, which are dependent on internal cash flow forecasts, estimation of the terminal growth rates and determination of risk-adjusted 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 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. In conjunction with the goodwill impairment analyses as of January 1, 2023, March 31, 2023, and February 29, 2024, we performed recoverability tests of our long-lived assets, including finite-lived intangible assets, by comparing the net book value of our long-lived assets or asset groups, to the future undiscounted net cash flows attributable to such assets, 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.

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, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 19.5	$ 19.5	$ 32.3	$ 34.7
Equity classified awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	13.0	18.6	26.0	33.3
Liability classified awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 6.5	$ 0.9	$ 6.3	$ 1.4

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

The following table sets forth the changes in the carrying amounts of goodwill by reportable segment.


(In millions)	Public Cloud		Private Cloud		Total
Gross goodwill as of December 31, 2023	$	597.7	$	1,563.5	$	2,161.2
Less: impairment charges	—		(708.8)		(708.8)
Goodwill, net as of December 31, 2023	597.7		854.7		1,452.4



Impairment of goodwill	(385.4)		(187.8)		(573.2)
Foreign currency translation	(1.1)		(0.4)		(1.5)
Goodwill, net as of June 30, 2024	$	211.2	$	666.5	$	877.7

Gross goodwill as of June 30, 2024	$	596.6	$	1,563.1	$	2,159.7
Less: accumulated impairment charges (1)	(385.4)		(896.6)		(1,282.0)
Goodwill, net as of June 30, 2024	$	211.2	$	666.5	$	877.7

(1) On a consolidated basis, gross and net goodwill as of June 30, 2024 was $3,041.6 million and $877.7 million, respectively. Accumulated impairment charges on a consolidated basis was $2,163.9 million as of June 30, 2024.

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 and 2024.

The following table provides information regarding our intangible assets other than goodwill:


	December 31, 2023						June 30, 2024
(In millions)	Gross carrying amount		Accumulated amortization		Net carrying amount		Gross carrying amount		Accumulated amortization		Net carrying amount
Customer relationships	$	1,932.0	$	(1,073.9)	$	858.1	$	1,931.3	$	(1,150.4)	$	780.9

Other	27.8		(26.9)		0.9		27.7		(27.1)		0.6
Total definite-lived intangible assets	1,959.8		(1,100.8)		859.0		1,959.0		(1,177.5)		781.5
Trade name (indefinite-lived)	160.0		—		160.0		140.0		—		140.0
Total intangible assets other than goodwill	$	2,119.8	$	(1,100.8)	$	1,019.0	$	2,099.0	$	(1,177.5)	$	921.5

During the six months ended June 30, 2024 we recognized impairment charges of $20.0 million related to our trade name indefinite-lived intangible asset.

For more information, see the discussion of our impairment charges in Note 1, "Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies."

Derivatives - Derivatives Presented on a Net Asset and Net Liability basis (Details) - Interest rate swaps - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Assets
Gross Amounts on Balance Sheet	$ 77.7	$ 83.8
Effects of Counterparty Netting	(29.0)	(37.6)
Net Amounts	48.7	46.2
Liabilities
Gross Amounts on Balance Sheet	29.0	37.6
Effects of Counterparty Netting	(29.0)	(37.6)
Net Amounts	$ 0.0	$ 0.0

- Definition

Fair value, after the effects of master netting arrangements, of a financial asset or other contract with one or more underlyings, notional amount or payment provision or both, and the contract can be net settled by means outside the contract or delivery of an asset. Includes assets not subject to a master netting arrangement and not elected to be offset.

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+ Details

- Definition

Fair value, after the effects of master netting arrangements, of a financial liability or contract with one or more underlyings, notional amount or payment provision or both, and the contract can be net settled by means outside the contract or delivery of an asset. Includes liabilities not subject to a master netting arrangement and not elected to be offset.

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+ Details

Debt - New Revolving Credit Facility (Details) - USD ($)	Mar. 12, 2024	Feb. 09, 2021	Jun. 30, 2024
New Revolving Credit Facility \| Line of credit
Debt Instrument [Line Items]
Letters of credit outstanding, amount			$ 23,500,000
3.50% FLSO Senior Secured Notes \| Senior notes
Debt Instrument [Line Items]
Interest rate	3.50%	3.50%	3.50%
Revolving Credit Facility \| Line of credit
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 375,000,000.0
Unused commitment fee percentage		0.50%
Revolving Credit Facility \| New Revolving Credit Facility \| Line of credit
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 375,000,000		375,000,000
Debt instrument, variable interest rate, type [Extensible Enumeration]	Secured Overnight Financing Rate (SOFR)
Debt instrument, basis spread on variable rate	3.00%
Unused commitment fee percentage	0.50%
Debt instrument, leverage ratio, maximum	5.00
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	35.00%
Outstanding borrowings			0
Remaining commitments			$ 375,000,000
Revolving Credit Facility \| New Revolving Credit Facility \| Line of credit \| Minimum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.00%

Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ (787.2)	$ 24.4	$ (154.5)	$ 629.5
Foreign currency translation adjustments, net of tax expense (benefit)	(0.8)	2.8	(4.5)	6.2
Unrealized gain on derivative contracts, net of tax expense	4.5	19.3	17.6	13.7
Amount reclassified from Accumulated comprehensive income (loss) into earnings, net of tax (benefit) expense	(11.1)	(6.8)	(22.2)	(12.4)
Ending balance	(756.2)	31.9	(756.2)	31.9
Foreign currency translation adjustment, tax benefit	0.1	0.5	(0.1)	0.9
Unrealized gain (loss) on derivative contract, tax expense	1.6	6.6	6.1	4.7
Amount reclassified from Accumulated comprehensive income (loss) into earnings, net of tax expense	3.8	2.2	7.6	4.2
Interest expense	18.4	57.3	62.1	114.2
Reclassification out of Accumulated Other Comprehensive Income
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Interest expense	14.9	13.5	29.8	25.7
Amortization of off-market swap		4.5		9.1
Accumulated Other Comprehensive Income
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	58.6	63.6	60.3	71.4
Ending balance	51.2	78.9	51.2	78.9
Accumulated Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(5.7)	(6.6)	(2.0)	(10.0)
Foreign currency translation adjustments, net of tax expense (benefit)	(0.8)	2.8	(4.5)	6.2
Unrealized gain on derivative contracts, net of tax expense	0.0	0.0	0.0	0.0
Amount reclassified from Accumulated comprehensive income (loss) into earnings, net of tax (benefit) expense	0.0	0.0	0.0	0.0
Ending balance	(6.5)	(3.8)	(6.5)	(3.8)
Accumulated Gain on Derivative Contracts
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	64.3	70.2	62.3	81.4
Foreign currency translation adjustments, net of tax expense (benefit)	0.0	0.0	0.0	0.0
Unrealized gain on derivative contracts, net of tax expense	4.5	19.3	17.6	13.7
Amount reclassified from Accumulated comprehensive income (loss) into earnings, net of tax (benefit) expense	(11.1)	(6.8)	(22.2)	(12.4)
Ending balance	$ 57.7	$ 82.7	$ 57.7	$ 82.7

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2024
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. Headquarters Lease In February 2023, we signed an agreement to lease approximately 93,000 square feet of office space in San Antonio, Texas, which will serve as our new corporate headquarters. The initial lease term is 11 years, with three 5-year renewal options. In addition to monthly base rent, we will also pay a share of common area maintenance and operating expenses. The lease commenced in the second quarter of 2024.

Cover Page - shares	6 Months Ended
Cover Page - shares	Jun. 30, 2024	Aug. 05, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
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	19122 US Highway 281N
Entity Address, Address Line Two	Suite 128
Entity Address, City or Town	San Antonio
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78258
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	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		226,032,947
Entity Central Index Key	0001810019
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

Debt - March 2024 Refinancing Transactions (Details) - USD ($)	3 Months Ended			6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Apr. 16, 2024	Mar. 26, 2024	Mar. 12, 2024	Dec. 31, 2023	Feb. 09, 2021	Dec. 01, 2020
Debt Instrument [Line Items]
Debt modification costs and gain on debt extinguishment	$ 72,500,000		$ 94,900,000	$ 129,200,000	$ 107,700,000
Senior notes
Debt Instrument [Line Items]
Debt instrument, percent of total debt								64.00%
Line of credit \| Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 375,000,000.0			$ 375,000,000.0
3.50% Senior Secured Notes \| Senior notes
Debt Instrument [Line Items]
Interest rate	3.50%			3.50%				3.50%	3.50%	3.50%
Debt instrument, percent of total debt								91.00%
Debt instrument, aggregate principal amount subject to repurchase under tender offer						$ 138,400,000		$ 331,400,000
Aggregate principal amount										$ 550,000,000.0
Term Loan Facility \| Term loan facility
Debt Instrument [Line Items]
Debt instrument, percent of total debt								72.00%
Debt instrument, aggregate principal amount subject to repurchase under tender offer							$ 529,900,000	$ 1,588,800,000
Aggregate principal amount										$ 2,300,000,000
FLSO Term Loan Facility \| Senior notes
Debt Instrument [Line Items]
Interest rate								3.50%
FLSO Term Loan Facility \| Term loan facility
Debt Instrument [Line Items]
Aggregate principal amount								$ 1,687,200,000
Debt modification costs and gain on debt extinguishment	$ 14,100,000
FLSO Term Loan Facility \| Term loan facility \| Rackspace Finance LLC
Debt Instrument [Line Items]
Aggregate principal amount								$ 1,312,000,000
FLSO Term Loan Facility \| Term loan facility \| New Borrower
Debt Instrument [Line Items]
Aggregate principal amount							$ 375,100,000
3.50% FLSO Senior Secured Notes \| Senior notes
Debt Instrument [Line Items]
Interest rate	3.50%			3.50%				3.50%		3.50%
Aggregate principal amount						$ 96,900,000		$ 267,300,000
Debt modification costs and gain on debt extinguishment	$ 33,000,000
3.50% FLSO Senior Secured Notes \| Term loan facility
Debt Instrument [Line Items]
Debt instrument, unamortized premium	39,100,000			$ 39,100,000
Debt modification costs and gain on debt extinguishment	23,300,000	$ 56,700,000
Debt issuance cost	$ 3,300,000			$ 3,300,000				28,400,000
FLFO Term Loan Facility \| Senior notes
Debt Instrument [Line Items]
Aggregate principal amount								275,000,000
FLFO Term Loan Facility \| Term loan facility
Debt Instrument [Line Items]
Aggregate principal amount								275,000,000
5.375% Senior Notes \| Senior notes
Debt Instrument [Line Items]
Interest rate	5.375%			5.375%					5.375%		5.375%
Aggregate principal amount											$ 550,000,000.0
Debt modification costs and gain on debt extinguishment	$ 2,100,000		$ 94,900,000		$ 107,700,000
New Revolving Credit Facility \| Line of credit \| Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 375,000,000			$ 375,000,000				$ 375,000,000

Commitments and Contingencies (Details) ft² in Thousands	Feb. 28, 2023 ft² renewal_option
Commitments and Contingencies Disclosure [Abstract]
Area of lease \| ft²	93
Term of contract	11 years
Number of renewal options \| renewal_option	3
Renewal term	5 years

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash Flows From Operating Activities
Net loss	$ (615.6)	$ (639.2)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	149.0	192.4
Amortization of operating right-of-use assets	34.2	42.5
Deferred income taxes	(51.2)	(17.0)
Share-based compensation expense	32.3	34.7
Impairment of goodwill	573.2	543.1
Impairment of assets, net	20.0	0.0
Debt modification costs and gain on debt extinguishment	(129.2)	(107.7)
Unrealized loss on derivative contracts	0.0	7.7
Gain on investments, net	(0.1)	(0.2)
Provision for bad debts and accrued customer credits	10.8	5.0
Amortization of debt issuance costs and debt discount and premium	(3.5)	4.0
Third party fees paid in connection with the Refinancing Transactions	(31.7)	0.0
Other operating activities	(2.9)	0.0
Changes in operating assets and liabilities:
Accounts receivable	10.4	74.7
Prepaid expenses and other current assets	4.2	23.5
Accounts payable, accrued expenses, and other current liabilities	(35.5)	(101.2)
Deferred revenue	(7.7)	(9.2)
Operating lease liabilities	(43.8)	(30.8)
Other non-current assets and liabilities	20.9	13.6
Net cash provided by (used in) operating activities	(66.2)	35.9
Cash Flows From Investing Activities
Purchases of property, equipment and software	(66.7)	(35.5)
Proceeds from sale of headquarters	16.9	0.0
Other investing activities	0.3	0.6
Net cash used in investing activities	(49.5)	(34.9)
Cash Flows From Financing Activities
Proceeds from employee stock plans	0.4	0.8
Shares of common stock withheld for employee taxes	(3.4)	0.0
Proceeds from borrowings under long-term debt arrangements	275.0	50.0
Payments on long-term debt	(91.9)	(67.0)
Debt extinguishment costs	(22.1)	0.0
Payments on financing component of interest rate swap	(8.6)	(8.6)
Principal payments of finance lease liabilities	(30.8)	(39.1)
Principal payments of financing obligations	(8.2)	(6.9)
Net cash provided by (used in) financing activities	110.4	(70.8)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(1.3)	1.4
Decrease in cash, cash equivalents, and restricted cash	(6.6)	(68.4)
Cash, cash equivalents, and restricted cash at beginning of period	199.7	231.4
Cash, cash equivalents, and restricted cash at end of period	193.1	163.0
Supplemental Cash Flow Information
Cash payments for interest, net of amount capitalized	70.1	113.6
Cash payments for income taxes, net of refunds	6.8	5.6
Non-cash Investing and Financing Activities
Acquisition of property, equipment and software by finance leases	13.7	63.2
Acquisition of property, equipment and software by financing obligations	0.0	8.5
Increase (decrease) in property, equipment and software accrued in liabilities	(1.3)	9.0
Other non-cash additions	(0.5)	0.0
Non-cash purchases of property, equipment and software	11.9	80.7
Non-cash gain on sale of property and equipment	(5.1)	0.0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
Cash and cash equivalents	190.2	159.9
Restricted cash included in other non-current assets	2.9	3.1
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$ 193.1	$ 163.0

Segment Reporting - Schedule of Depreciation (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue, Major Customer [Line Items]
Total depreciation expense	$ 35.5	$ 56.7	$ 71.7	$ 110.5
Public Cloud
Revenue, Major Customer [Line Items]
Total depreciation expense	2.0	2.5	3.5	4.6
Private Cloud
Revenue, Major Customer [Line Items]
Total depreciation expense	28.4	44.9	57.0	88.8
Corporate functions
Revenue, Major Customer [Line Items]
Total depreciation expense	$ 5.1	$ 9.3	$ 11.2	$ 17.1

Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2024

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.


(In millions)	Public Cloud		Private Cloud		Total
Gross goodwill as of December 31, 2023	$	597.7	$	1,563.5	$	2,161.2
Less: impairment charges	—		(708.8)		(708.8)
Goodwill, net as of December 31, 2023	597.7		854.7		1,452.4



Impairment of goodwill	(385.4)		(187.8)		(573.2)
Foreign currency translation	(1.1)		(0.4)		(1.5)
Goodwill, net as of June 30, 2024	$	211.2	$	666.5	$	877.7

Gross goodwill as of June 30, 2024	$	596.6	$	1,563.1	$	2,159.7
Less: accumulated impairment charges (1)	(385.4)		(896.6)		(1,282.0)
Goodwill, net as of June 30, 2024	$	211.2	$	666.5	$	877.7

Schedule of Finite-Lived Intangible Assets Other Than Goodwill

The following table provides information regarding our intangible assets other than goodwill:


	December 31, 2023						June 30, 2024
(In millions)	Gross carrying amount		Accumulated amortization		Net carrying amount		Gross carrying amount		Accumulated amortization		Net carrying amount
Customer relationships	$	1,932.0	$	(1,073.9)	$	858.1	$	1,931.3	$	(1,150.4)	$	780.9

Other	27.8		(26.9)		0.9		27.7		(27.1)		0.6
Total definite-lived intangible assets	1,959.8		(1,100.8)		859.0		1,959.0		(1,177.5)		781.5
Trade name (indefinite-lived)	160.0		—		160.0		140.0		—		140.0
Total intangible assets other than goodwill	$	2,119.8	$	(1,100.8)	$	1,019.0	$	2,099.0	$	(1,177.5)	$	921.5

Schedule of Indefinite-Lived Intangible Assets Other Than Goodwill

The following table provides information regarding our intangible assets other than goodwill:


	December 31, 2023						June 30, 2024
(In millions)	Gross carrying amount		Accumulated amortization		Net carrying amount		Gross carrying amount		Accumulated amortization		Net carrying amount
Customer relationships	$	1,932.0	$	(1,073.9)	$	858.1	$	1,931.3	$	(1,150.4)	$	780.9

Other	27.8		(26.9)		0.9		27.7		(27.1)		0.6
Total definite-lived intangible assets	1,959.8		(1,100.8)		859.0		1,959.0		(1,177.5)		781.5
Trade name (indefinite-lived)	160.0		—		160.0		140.0		—		140.0
Total intangible assets other than goodwill	$	2,119.8	$	(1,100.8)	$	1,019.0	$	2,099.0	$	(1,177.5)	$	921.5

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

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+ Details

Segment Reporting

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Segment Reporting

We have organized our operations into 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 Amazon Web Services (“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 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.

During the first quarter of 2024, we identified that an immaterial amount of revenue for a certain Private Cloud product offering was incorrectly reported in the Public Cloud segment in historical periods. Revenue by segment has been corrected in the table below by reducing Public Cloud revenue by $1.2 million and increasing Private Cloud revenue by $1.2 million for the three months ended June 30, 2023 and reducing Public Cloud revenue by $2.3 million and increasing Private Cloud revenue by $2.3 million for the six months ended June 30, 2023.

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, 2023 and 2024.


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2023		2024		2023		2024
Revenue by segment:
Public Cloud	$	433.7	$	424.9	$	877.2	$	847.3
Private Cloud	312.6		260.0		627.8		528.4

Total consolidated revenue	$	746.3	$	684.9	$	1,505.0	$	1,375.7

Segment operating profit:
Public Cloud	$	15.8	$	11.8	$	39.2	$	21.1
Private Cloud	88.0		69.7		182.0		141.4

Total consolidated segment operating profit	103.8		81.5		221.2		162.5
Corporate functions	(64.8)		(58.7)		(131.7)		(123.5)
Share-based compensation expense	(19.5)		(19.5)		(34.7)		(32.3)
Special bonuses and other compensation expense (1)	(4.2)		(3.3)		(6.4)		(6.4)
Transaction-related adjustments, net (2)	(1.2)		(1.6)		(2.5)		(2.6)
Restructuring and transformation expenses (3)	(23.1)		(13.7)		(48.7)		(33.7)
Hosted Exchange incident expenses, net of proceeds received or expected to be received under our insurance coverage	(1.7)		0.1		(4.9)		(0.1)
Amortization of intangible assets (4)	(41.0)		(38.6)		(81.9)		(77.3)
Impairment of goodwill	—		—		(543.1)		(573.2)
UK office closure (5)	(12.1)		—		(12.1)		—
Impairment of assets, net	—		—		—		(20.0)

Interest expense	(57.3)		(18.4)		(114.2)		(62.1)
Gain on investments, net	0.1		—		0.2		0.1
Debt modification costs and gain on debt extinguishment	94.9		72.5		107.7		129.2
Other income (expense), net	0.2		(5.2)		2.3		(10.8)
Total consolidated loss before income taxes	$	(25.9)	$	(4.9)	$	(648.8)	$	(650.2)


(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. The six months ended June 30, 2024 also includes a $9.0 million MEIA early termination fee associated with the sale of our corporate headquarters in March 2024.
(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, 2023 and 2024.


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2023		2024		2023		2024
Public Cloud	$	2.5	$	2.0	$	4.6	$	3.5
Private Cloud	44.9		28.4		88.8		57.0

Corporate functions	9.3		5.1		17.1		11.2
Total depreciation expense	$	56.7	$	35.5	$	110.5	$	71.7

Management does not use total assets by segment to evaluate segment performance or allocate resources. As such, total assets by segment are not disclosed.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2024

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, 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


(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


(In millions)	Accumulated Foreign Currency Translation Adjustments		Accumulated Gain on Derivative Contracts		Accumulated Other Comprehensive Income
Balance at March 31, 2024	$	(5.7)	$	64.3	$	58.6
Foreign currency translation adjustments, net of tax expense of $0.1	(0.8)		—		(0.8)
Unrealized gain on derivative contracts, net of tax expense of $1.6	—		4.5		4.5
Amount reclassified from Accumulated comprehensive income (loss) into earnings, net of tax expense of $3.8 (1)	—		(11.1)		(11.1)
Balance at June 30, 2024	$	(6.5)	$	57.7	$	51.2

(1) Includes a reduction to interest expense recognized of $14.9 million related to the cash flow hedge gain for the three months ended June 30, 2024.


(In millions)	Accumulated Foreign Currency Translation Adjustments		Accumulated Gain on Derivative Contracts		Accumulated Other Comprehensive Income
Balance at December 31, 2023	$	(2.0)	$	62.3	$	60.3
Foreign currency translation adjustments, net of tax benefit of $0.1	(4.5)		—		(4.5)
Unrealized gain on derivative contracts, net of tax expense of $6.1	—		17.6		17.6
Amount reclassified from Accumulated comprehensive income (loss) into earnings, net of tax expense of $7.6 (1)	—		(22.2)		(22.2)
Balance at June 30, 2024	$	(6.5)	$	57.7	$	51.2

(1) Includes a reduction to interest expense recognized of $29.8 million related to the cash flow hedge gain for the six months ended June 30, 2024.

Debt (Tables)

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

Debt consisted of the following:


(In millions, except %)		December 31, 2023			June 30, 2024
Debt Instrument	Maturity Date	Interest Rate(1)	Amount		Interest Rate(1)	Amount
FLSO Term Loan Facility	May 15, 2028	—%	$	—	8.19%	$	1,659.4
FLFO Term Loan Facility	May 15, 2028	—%	—		11.69%	274.3
Term Loan Facility	February 15, 2028	8.23%	2,181.2		8.19%	62.1
New Revolving Credit Facility	May 15, 2028	—%	—		—%	—
Revolving Credit Facility	August 7, 2025	—%	—		—%	—
3.50% FLSO Senior Secured Notes	May 15, 2028	—%	—		3.50%	318.6
3.50% Senior Secured Notes	February 15, 2028	3.50%	513.7		3.50%	43.9
5.375% Senior Notes	December 1, 2028	5.375%	197.6		5.375%	125.4

Total principal amount outstanding			2,892.5			2,483.7
Unamortized debt issuance costs, debt premium, and debt discount			(29.9)			386.3
Total debt			2,862.6			2,870.0
Less: current portion of debt			(23.0)			(54.0)
Debt, excluding current portion			$	2,839.6		$	2,816.0

(1) Contractual interest rate as of each respective balance sheet date.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details

Sale of Receivables (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
Sale of Receivables (Details) - USD ($) $ in Millions	Jun. 30, 2024	Jun. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Expense	$ 5.1	$ 10.9
Loss on sale	5.0	10.3
Transaction costs	0.1	0.6
Sold receivables derecognized	205.8	205.8	$ 223.8
Rackspace Receivables II, LLC , Special Purpose Vehicle (SPV)
Debt Instrument [Line Items]
Unsold receivables retained	$ 127.3	$ 127.3

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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+ Details

Net Earnings (Loss) Per Share - Narrative (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Anti-dilutive potential common shares excluded from computation of dilutive net income (loss) per share (in shares)	44.3	42.8	33.7	42.8

Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies - Narrative (Details)				3 Months Ended			6 Months Ended
	Feb. 29, 2024 USD ($)	Mar. 31, 2023 USD ($)	Jan. 01, 2023 USD ($) segment	Jun. 30, 2024 USD ($) $ / shares	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Jun. 30, 2024 USD ($) $ / shares	Jun. 30, 2023 USD ($)	Mar. 12, 2024	Dec. 31, 2023 USD ($)	Feb. 09, 2021 USD ($)	Dec. 01, 2020 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Principal balance				$ 2,483,700,000			$ 2,483,700,000			$ 2,892,500,000
Cash and cash equivalents				190,200,000	$ 159,900,000		190,200,000	$ 159,900,000		$ 196,800,000
Depreciation reduction				$ (35,500,000)	(56,700,000)		$ (71,700,000)	(110,500,000)
Period increase (in dollar per share) \| $ / shares				$ 0.05			$ 0.11
Number of business units \| segment			2
Impairment of goodwill				$ 0	0		$ 573,200,000	543,100,000
Trade name (indefinite-lived)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impairment charge	$ 20,000,000						20,000,000
Private Cloud
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Depreciation reduction				(28,400,000)	(44,900,000)		(57,000,000.0)	(88,800,000)
Impairment of goodwill	187,800,000	$ 272,300,000	$ 270,800,000			$ 270,800,000	187,800,000
Public Cloud
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Depreciation reduction				(2,000,000.0)	$ (2,500,000)		(3,500,000)	$ (4,600,000)
Impairment of goodwill	$ 385,400,000						385,400,000
Computers and equipment \| Change in Accounting Method Accounted for as Change in Estimate
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Depreciation reduction				$ 12,600,000			$ 24,800,000
Minimum \| Computers and equipment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Useful life	3 years			5 years			5 years
Maximum \| Computers and equipment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Useful life	5 years			7 years			7 years
5.375% Senior Notes \| Senior notes
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Aggregate principal amount												$ 550,000,000.0
Interest rate				5.375%			5.375%			5.375%		5.375%
Principal balance				$ 125,400,000			$ 125,400,000			$ 197,600,000
3.50% Senior Secured Notes \| Senior notes
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Aggregate principal amount											$ 550,000,000.0
Interest rate				3.50%			3.50%		3.50%	3.50%	3.50%
Principal balance				$ 43,900,000			$ 43,900,000			$ 513,700,000
FLSO Term Loan Facility \| Senior notes
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Interest rate									3.50%
Term loan facility \| Term Loan Facility \| Line of credit
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Aggregate principal amount				2,483,700,000			2,483,700,000
Revolving Credit Facility \| Line of credit
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Maximum borrowing capacity				375,000,000.0			375,000,000.0
Principal balance				$ 0			$ 0

Taxes	6 Months Ended
Taxes	Jun. 30, 2024
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, 2024, our effective tax rate is lower than the U.S. federal statutory rate of 21% primarily due to the tax impact associated with changes in the valuation allowance and the additional second quarter impact of the March 2024 Refinancing Transactions which were completed in April 2024. For the six months ended June 30, 2024, our effective tax rate is lower than the U.S. federal statutory rate of 21% primarily due to the tax impact associated with changes in the valuation allowance related to disallowed interest, the tax impact associated with the goodwill impairment recorded in the first quarter of 2024, the majority of which was nondeductible for income tax purposes, and the tax impact of the March 2024 Refinancing Transactions discussed below. The tax impact of the March 2024 Refinancing Transactions include excluded cancellation of indebtedness income (“CODI”), federal and state attribution reduction and changes in valuation allowance. In December 2021, the Organisation for Economic Co-operation and Development (the “OECD”) issued model rules for a new global minimum tax framework (Pillar Two). Governments in many of the countries where we operate have issued, or are in the process of issuing, legislation on this rule. We are currently evaluating, but do not expect this rule to have a material impact on our consolidated financial statements. As a result of the March 2024 Refinancing Transactions, discussed in Note 7, “Debt”, specifically upon the completion of the Private Exchange and Public Term Loan Exchange in March 2024, and the completion of the Public Note Exchange in April 2024, the company realized CODI for US tax purposes of $531.5 million and $80.5 million, respectively, for a total $612.0 million for the six months ended June 30, 2024. Pursuant to Internal Revenue Code (“IRC”) Section 108, an insolvent debtor may exclude CODI from taxable income to the extent of the debtor’s insolvency (liabilities greater than the fair value of its assets) but must reduce its tax attributes, subject to certain limitations and according to prescribed ordering rules, based on the amount of CODI excluded from taxable income. The company currently estimates that the level of its insolvency (as defined for US Tax purposes) exceeds the amount of CODI resulting from the March 2024 Refinancing Transactions, such that all resulting CODI will be excluded from the company’s taxable income. The process for determining the amount of tax attribute reduction is complex and the actual reduction to attributes does not occur until the first day of the company’s tax year subsequent to the date of the discharge event, or January 1, 2025. Therefore, the estimated impact of the tax attribute reduction from the March 2024 Refinancing Transactions is subject to change until the finalization of the company’s tax returns for the year ending December 31, 2024. For purposes of determining the interim tax provision for the six months ended June 30, 2024, the company estimates that all its federal (and certain of its state) net operating loss and tax credit carryovers will be eliminated resulting from the tax attribute reduction for excluded CODI. For the six months ended June 30, 2024, the company recorded an income tax benefit of $88.0 million related to the total effects of the March 2024 Refinancing Transactions, including excluded CODI, federal and state tax attribute reduction, and resulting changes in valuation allowance. The total income tax benefit recorded in the six months ended June 30, 2024 was a tax benefit of $34.6 million which includes the $88.0 million tax benefit from the March 2024 Refinancing Transactions.

- Definition

The entire disclosure for income tax.

+ References

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-Section 50
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+ Details

Share-Based Compensation - Schedule of Share Based Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pre-tax share-based compensation expense	$ 19.5	$ 19.5	$ 32.3	$ 34.7
Less: Income tax benefit	(4.1)	(4.1)	(6.8)	(7.3)
Total share-based compensation expense, net of tax	15.4	15.4	25.5	27.4
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pre-tax share-based compensation expense	2.0	2.6	3.9	5.4
Selling, general and administrative expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pre-tax share-based compensation expense	$ 17.5	$ 16.9	$ 28.4	$ 29.3

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Customer Contracts (Tables)

6 Months Ended

Jun. 30, 2024

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, 2023		June 30, 2024
Accounts receivable, net	Accounts receivable, net (1)	$	339.7	$	322.8
Current portion of contract assets	Other current assets	$	10.7	$	8.2
Non-current portion of contract assets	Other non-current assets	$	8.6	$	6.9
Current portion of deferred revenue	Deferred revenue	$	78.8	$	72.5
Non-current portion of deferred revenue	Other non-current liabilities	$	5.3	$	3.7

(1) Allowance for credit losses and accrued customer credits was $20.1 million and $25.8 million as of December 31, 2023 and June 30, 2024, respectively.

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)	2023		2024		2023		2024
Amortization of capitalized sales commissions	$	9.8	$	7.3	$	20.1	$	15.5
Amortization of capitalized implementation costs	$	3.4	$	2.4	$	7.0	$	5.1

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions		6 Months Ended
	Feb. 29, 2024	Jun. 30, 2024
Trade name (indefinite-lived)
Goodwill [Line Items]
Impairment charge	$ 20.0	$ 20.0

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (d)
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1A

+ Details

Net Earnings (Loss) Per Share (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Net Earnings (Loss) Per Share

The following table sets forth the computation of basic and diluted net earnings (loss) per share:


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions, except per share data)	2023		2024		2023		2024
Basic net earnings (loss) per share:
Net income (loss) attributable to common stockholders	$	(27.2)	$	25.0	$	(639.2)	$	(615.6)
Weighted average shares outstanding:
Common stock	215.1		224.5		214.2		222.2
Number of shares used in per share computations	215.1		224.5		214.2		222.2
Net earnings (loss) per share	$	(0.13)	$	0.11	$	(2.98)	$	(2.77)

Diluted net earnings (loss) per share:
Net income (loss) attributable to common stockholders	$	(27.2)	$	25.0	$	(639.2)	$	(615.6)
Weighted average shares outstanding:
Common stock	215.1		224.5		214.2		222.2
Effect of dilutive securities	—		5.1		—		—
Number of shares used in per share computations	215.1		229.6		214.2		222.2
Net earnings (loss) per share	$	(0.13)	$	0.11	$	(2.98)	$	(2.77)

Taxes - Narrative (Details) - USD ($) $ in Millions	1 Months Ended		3 Months Ended		6 Months Ended
Taxes - Narrative (Details) - USD ($) $ in Millions	Apr. 30, 2024	Mar. 31, 2024	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Cancellation of indebtedness income	$ 80.5	$ 531.5			$ 612.0
Income tax benefit related to indebtedness refinancing					88.0
Benefit (provision) for income taxes			$ 29.9	$ (1.3)	$ 34.6	$ 9.6

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

+ Details

Net Earnings (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, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Basic net earnings (loss) per share:
Net income (loss) attributable to common stockholders, basic	$ 25.0	$ (27.2)	$ (615.6)	$ (639.2)
Basic (in shares)	224.5	215.1	222.2	214.2
Net earnings (loss) per share, basic (in dollars per share)	$ 0.11	$ (0.13)	$ (2.77)	$ (2.98)
Diluted net earnings (loss) per share:
Net income (loss) attributable to common stockholders, diluted	$ 25.0	$ (27.2)	$ (615.6)	$ (639.2)
Common stock (in shares)	224.5	215.1	222.2	214.2
Effect of dilutive securities (in shares)	5.1	0.0	0.0	0.0
Number of shares used in per share computations (in shares)	229.6	215.1	222.2	214.2
Net earnings (loss) per share, diluted (in dollars per share)	$ 0.11	$ (0.13)	$ (2.77)	$ (2.98)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

+ Details

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482689/260-10-45-60B

+ Details

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities, and addition from assumption of issuance of common shares for dilutive potential common shares; of income (loss) available to common shareholders.

+ References + Details

Debt

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Debt

Debt consisted of the following:


(In millions, except %)		December 31, 2023			June 30, 2024
Debt Instrument	Maturity Date	Interest Rate(1)	Amount		Interest Rate(1)	Amount
FLSO Term Loan Facility	May 15, 2028	—%	$	—	8.19%	$	1,659.4
FLFO Term Loan Facility	May 15, 2028	—%	—		11.69%	274.3
Term Loan Facility	February 15, 2028	8.23%	2,181.2		8.19%	62.1
New Revolving Credit Facility	May 15, 2028	—%	—		—%	—
Revolving Credit Facility	August 7, 2025	—%	—		—%	—
3.50% FLSO Senior Secured Notes	May 15, 2028	—%	—		3.50%	318.6
3.50% Senior Secured Notes	February 15, 2028	3.50%	513.7		3.50%	43.9
5.375% Senior Notes	December 1, 2028	5.375%	197.6		5.375%	125.4

Total principal amount outstanding			2,892.5			2,483.7
Unamortized debt issuance costs, debt premium, and debt discount			(29.9)			386.3
Total debt			2,862.6			2,870.0
Less: current portion of debt			(23.0)			(54.0)
Debt, excluding current portion			$	2,839.6		$	2,816.0

(1) Contractual interest rate as of each respective balance sheet date.

March 2024 Refinancing Transactions

Private Exchange

On March 12, 2024, we (together with certain of our subsidiaries) closed a private debt exchange (the “Private Exchange”) with (i) holders of the 3.50% Senior Secured Notes (the “Existing Secured Notes”) issued by Rackspace Technology Global (the “Existing Borrower”) representing more than 64% of the aggregate principal amount outstanding of the Existing Secured Notes as of December 31, 2023, and (ii) lenders representing more than 72% of the aggregate principal amount of the outstanding term loan facility under the First Lien Credit Agreement (the “Existing Term Loans”) as of December 31, 2023.

Pursuant to the Private Exchange, (i) $331.4 million aggregate principal amount of Existing Secured Notes and $1,588.8 million aggregate principal amount of the Existing Term Loans were exchanged or purchased for cancellation and (ii) $267.3 million aggregate principal amount of new first lien second out senior secured notes (the “3.50% FLSO Senior Secured Notes”) and $1,312.0 million aggregate principal amount of new first lien second out senior secured term loans (the “FLSO Term Loan Facility” and the loans thereunder, the “FLSO Term Loans”) were issued by Rackspace Finance, LLC, a new subsidiary of the company (the “New Borrower”).

In addition, the New Borrower issued $275.0 million aggregate principal amount of new first lien first out senior secured term loans (the “FLFO Term Loan Facility” and the loans thereunder, the “FLFO Term Loans”) and we repurchased and cancelled $69.3 million aggregate principal amount of the 5.375% Senior Notes.

See “New Debt Instruments” below for additional discussion of the new 3.50% FLSO Senior Secured Notes, FLSO Term Loan Facility, and FLFO Term Loan Facility.

Public Exchanges

On March 13, 2024, we launched an offer to all of the holders of the Existing Borrower’s remaining Existing Term Loans (the “Public Term Loan Exchange”). On March 26, 2024, we closed the Public Term Loan Exchange, pursuant to which (i) $529.9 million aggregate principal amount of the Existing Term Loans were exchanged or purchased for cancellation and (ii) $375.1 million aggregate principal amount of FLSO Term Loans was issued by the New Borrower.

On March 14, 2024, we launched an offer to all of the holders of the Existing Borrower’s remaining Existing Secured Notes (the “Public Note Exchange”). On April 16, 2024, we completed the Public Note Exchange, pursuant to which (i) $138.4 million aggregate principal amount of Existing Secured Notes were exchanged or purchased for cancellation and (ii) $96.9 million aggregate principal amount of 3.50% FLSO Senior Secured Notes were issued by the New Borrower.

New Revolving Credit Facility

On March 12, 2024, the New Borrower also established the new first lien first out revolving credit commitments in an aggregate principal amount of $375.0 million (the “New Revolving Credit Facility”). All revolving lenders under the prior Revolving Credit Facility exchanged their revolving loan commitments for commitments in respect of the New Revolving Credit Facility, which replaces in full the prior Revolving Credit Facility. The New Revolving Credit Facility matures on May 15, 2028.

See “New Debt Instruments” below for additional discussion of the New Revolving Credit Facility.

Accounting Impacts

The company performed an assessment of the March 2024 Refinancing Transactions and determined it met the criteria to be accounted for as a troubled debt restructuring under Accounting Standards Codification No. 470-60, Troubled Debt Restructurings by Debtors. For each series of the Existing Debt Instruments exchanged, the undiscounted cash flows associated with the New Debt Instruments issued were compared to the carrying value of the Existing Debt Instruments exchanged for such New Debt Instruments and the applicable exchange was accounted for as follows: (i) to the extent the undiscounted cash flows of the New Debt Instruments in question were lower than the carrying value of the applicable Existing Debt Instruments exchanged, the carrying value of the applicable New Debt Instruments was established at the total of these undiscounted cash flows, with a gain recorded for the remaining difference between this value and the carrying value of the applicable Existing Debt Instruments (as such, no interest expense will be recorded for the applicable 3.50% FLSO Senior Secured Notes prospectively) and (ii) to the extent the undiscounted cash flows of the New Debt Instruments in question exceeded the carrying value of the applicable Existing Debt Instruments exchanged, the carrying value of the applicable New Debt Instruments was established at the carrying value of the applicable Existing Debt Instruments and the company established new effective interest rates based on the carrying value of the applicable Existing Term Loans prior to the March 2024 Refinancing Transaction.

The difference between the principal amount of the 3.50% FLSO Senior Secured Notes and the carrying value was recorded as a premium and is included in long-term debt on the company’s Condensed Consolidated Balance Sheets.

The premium recorded on the 3.50% FLSO Senior Secured Notes was $39.1 million, which will be reduced as contractual interest payments are made on the 3.50% FLSO Senior Secured Notes.

In connection with the March 2024 Refinancing Transactions, the company recorded a gain in the first quarter of 2024 of $56.7 million after deducting third-party costs and lender fees incurred. The gain is included in "Debt modification costs and gain on debt extinguishment" in our Condensed Consolidated Statements of Comprehensive Income (Loss). The company incurred third party fees of $28.4 million.

The March 2024 Refinancing Transactions were completed in April 2024 with the closing of the Public Note Exchange. In connection with the Public Note Exchange, we recorded a $23.3 million gain, after deducting $3.3 million of third-party fees, in the second quarter of 2024. The gain is included in "Debt modification costs and gain on debt extinguishment" in our Condensed Consolidated Statements of Comprehensive Income (Loss).

New Debt Instruments

New Senior Facilities

On March 12, 2024, Rackspace Finance Holdings, LLC (“Rackspace Finance Holdings”), the New Borrower, the lenders and issuing banks party thereto and Citibank, N.A., as the administrative agent and collateral agent, entered into the credit agreement governing the FLSO Term Loan Facility, FLFO Term Loan Facility and New Revolving Credit Facility (together, the “New Senior Facilities”) (the “New First Lien Credit Agreement”).

FLSO Term Loan Facility

The New Borrower issued the FLSO Term Loan Facility in an aggregate principal amount of $1,687.2 million. The FLSO Term Loan Facility matures on May 15, 2028. Borrowings under the FLSO Term Loan Facility bear interest at an annual rate equal to 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 a credit spread adjustment of 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, subject to a 0.75% floor, plus an applicable margin of 2.75%.

As of June 30, 2024, the contractual interest rate on the FLSO Term Loan Facility was 8.19%. We are required to make quarterly principal payments of $4.2 million, which began on March 31, 2024. See Note 11, “Derivatives,” for information on interest rate swap agreements we utilize to manage the interest rate risk on the FLSO Term Loan Facility.

Affiliates of ABRY Partners, LLC and ABRY Partners II, LLC (collectively, “ABRY”) are FLSO Term Loan Facility lenders under the New First Lien Credit Agreement. As of June 30, 2024, the outstanding principal amount of the FLSO Term Loan Facility was $1,659.4 million, of which $49.8 million, or 3.0%, is due to ABRY affiliates. Investment funds affiliated with ABRY are also co-investors in Rackspace Technology.

As of June 30, 2024, Apollo Global Management, Inc. also held $80.9 million, or 4.9%, of the outstanding principal amount of the FLSO Term Loan Facility.

Prior to September 12, 2025, the New Borrower may prepay some or all of the FLSO Term Loan Facility, together with accrued and unpaid interest, subject to the applicable “make-whole” premium. On or after September 12, 2025, the New Borrower may prepay some or all of the FLSO Term Loan Facility, together with accrued and unpaid interest, without prepayment premium or penalty.

During the three months ended June 30, 2024, the New Borrower repurchased and surrendered for cancellation $19.3 million principal amount of the FLSO Term Loan Facility for $9.4 million. In connection with these repurchases, we recorded a gain, included in "Debt modification costs and gain on debt extinguishment", of $14.1 million, in our Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2024, which includes $4.1 million of unamortized debt issuance costs and debt premium write-offs.

The fair value of the FLSO Term Loan Facility as of June 30, 2024 was $730.1 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 FLSO Term Loan Facility is classified as Level 2 within the fair value hierarchy.

The New Borrower is the borrower and all obligations under the FLSO Term Loan Facility are guaranteed on a senior secured basis, jointly and severally, by Rackspace Finance Holdings on a limited-recourse basis and by certain of the New Borrower’s subsidiaries (the “Subsidiary Guarantors”). The obligations under the FLSO Term Loan Facility are secured by a pledge of the New Borrower’s capital stock directly held by Rackspace Finance Holdings and substantially all of the New Borrower’s and the Subsidiary Guarantors’ assets, subject to exceptions.

The FLSO Term Loan Facility contains certain customary affirmative covenants, negative covenants, and events of default.

During the three months ended June 30, 2024, the New Borrower initiated repurchases of an additional $24.2 million aggregate principal amount of the FLSO Term Loan Facility for $11.2 million. These repurchases subsequently settled on July 15, 2024. As such, this amount is included within current debt on the Condensed Consolidated Balance Sheet as of June 30, 2024.

FLFO Term Loan Facility

The New Borrower issued the FLFO Term Loan Facility in an initial aggregate principal amount of $275.0 million. The FLFO Term Loan Facility matures on May 15, 2028. Borrowings under the FLFO Term Loan Facility bear interest at an annual rate equal to 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 a credit spread adjustment of 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, subject to a 0.75% floor, plus an applicable margin of 6.25% and were issued with 1.00% of original issue discount.

As of June 30, 2024, the contractual interest rate on the FLFO Term Loan Facility was 11.69%. We are required to make quarterly principal payments of $0.7 million, which began on June 30, 2024. See Note 11, “Derivatives,” for information on interest rate swap agreements we utilize to manage the interest rate risk on the FLFO Term Loan Facility.

Prior to September 12, 2025, the New Borrower may prepay some or all of the FLFO Term Loan Facility, together with accrued and unpaid interest, subject to the applicable “make-whole” premium. On or after September 12, 2025 but prior to September 12, 2027, the New Borrower may prepay some or all of the FLFO Term Loan Facility, together with accrued and unpaid interest, subject to a prepayment fee equal to (x) 3.00% of the principal amount of the FLFO Term Loan Facility so prepaid prior to September 12, 2026 and (y) 1.00% of the principal amount of the FLFO Term Loan Facility so prepaid on or after September 12, 2026 but prior to September 12, 2027. On or after September 12, 2027, the New Borrower may prepay some or all of the FLFO Term Loan Facility, together with accrued and unpaid interest, without prepayment premium or penalty.

The fair value of the FLFO Term Loan Facility as of June 30, 2024 was $276.7 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 FLFO Term Loan Facility is classified as Level 2 within the fair value hierarchy.

The New Borrower is the borrower and all obligations under the FLFO Term Loan Facility are guaranteed on a senior secured basis, jointly and severally, by Rackspace Finance Holdings on a limited-recourse basis and by the Subsidiary Guarantors. The obligations under the FLFO Term Loan Facility are secured by the same collateral that secures the FLSO Term Loan Facility, the New Revolving Credit Facility and the 3.50% FLSO Senior Secured Notes.

The FLFO Term Loan Facility contains certain customary affirmative covenants, negative covenants, and events of default.

New Revolving Credit Facility

The New Borrower established the New Revolving Credit Facility in an aggregate principal amount of $375.0 million of commitments. The New Revolving Credit Facility matures on May 15, 2028 and bears interest at an annual rate equal to 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, subject to a 1.00% floor, plus an applicable margin of initially 3.00%. After June 30, 2024, the applicable margin became subject to a net first lien leverage-based pricing grid as set forth in the New First Lien Credit Agreement. In addition to paying interest on the outstanding principal under the New Revolving Credit Facility, the New Borrower is required to pay a commitment fee equal to initially 0.50% per annum to the lenders under the New Revolving Credit Facility in respect of the unutilized commitments thereunder. After June 30, 2024, the commitment fee became subject to a net first lien leverage-based pricing grid as set forth in the New First Lien Credit Agreement. The New Borrower may prepay loans incurred under the New Revolving Credit Facility, together with accrued and unpaid interest, without prepayment premium or penalty.

The New Borrower is the borrower and all obligations under the New Revolving Credit Facility are guaranteed on a senior secured basis, jointly and severally, by Rackspace Finance Holdings on a limited-recourse basis and by the Subsidiary Guarantors. The obligations under the New Revolving Credit Facility are secured by the same collateral that secures the FLSO Term Loan Facility, the FLFO Term Loan Facility and the 3.50% FLSO Senior Secured Notes.

The New Revolving Credit Facility contains certain customary affirmative covenants, negative covenants, and events of default. In addition, the New Revolving Credit Facility contains a financial covenant which limits the super-priority net senior secured 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 New Revolving Credit Facility and letters of credit issued thereunder (excluding $25.0 million of undrawn letters of credit and cash collateralized letters of credit) as of the last day of a fiscal quarter is greater than 35% of the New Revolving Credit Facility commitments as of the last day of such fiscal quarter.

As of June 30, 2024, we had total commitments of $375.0 million, no outstanding borrowings under the New Revolving Credit Facility, and $23.5 million of letters of credit issued thereunder. As such, as of June 30, 2024, we had $375.0 million of available commitments remaining.

As of June 30, 2024, we were in compliance with all covenants under the New Senior Facilities.

3.50% FLSO Senior Secured Notes due 2028

On March 12, 2024, the New Borrower issued $267.3 million initial aggregate principal amount of the 3.50% FLSO Senior Secured Notes. On April 2, 2024 and April 16, 2024, the New Borrower issued additional 3.50% FLSO Senior Secured Notes in an aggregate principal amount of $93.3 million and $3.6 million, respectively. The 3.50% FLSO Senior Secured Notes will mature on May 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, 2024. The 3.50% FLSO Senior Secured Notes are not subject to registration rights.

The New Borrower is the borrower and all obligations under the 3.50% FLSO Senior Secured Notes are fully and unconditionally guaranteed, jointly and severally, by Rackspace Finance Holdings on a limited-recourse basis and by the Subsidiary Guarantors. The obligations under the 3.50% FLSO Senior Secured Notes are secured by the same collateral that secures the FLSO Term Loan Facility, the FLFO Term Loan Facility and the New Revolving Credit Facility.

The New Borrower may redeem some or all of the 3.50% FLSO Senior Secured Notes at its option prior to September 12, 2025 at a redemption price equal to 100% of the principal amount of the 3.50% FLSO Senior Secured Notes redeemed, plus a “make-whole” premium described in the indenture governing the 3.50% FLSO Senior Secured Notes (the “3.50% FLSO Senior Secured Notes Indenture”), plus accrued and unpaid interest, if any, to, but excluding, the redemption date. Commencing September 12, 2025, the New Borrower may redeem the 3.50% FLSO Senior Secured Notes at its option, in whole at any time or in part from time to time, at a redemption price equal to 100% of the principal amount of the 3.50% FLSO Senior Secured Notes redeemed, plus accrued and unpaid interest, if any, to but excluding the redemption date.

During the three months ended June 30, 2024, the New Borrower repurchased and surrendered for cancellation $45.7 million principal amount of the 3.50% FLSO Senior Secured Notes for $19.3 million, including accrued interest of $0.4 million. In connection with these repurchases, we recorded a gain, included in "Debt modification costs and gain on debt extinguishment", of $33.0 million, in our Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2024, which includes $6.3 million of unamortized debt issuance costs and debt premium write-offs.

The 3.50% FLSO Senior Secured 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% FLSO Senior Secured Notes Indenture. Additionally, upon the occurrence of a change of control (as defined in the 3.50%FLSO Senior Secured Notes Indenture), we will be required to make an offer to repurchase all of the outstanding 3.50% FLSO 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. The 3.50% FLSO Senior Secured Notes Indenture also contains customary events of default.

As of June 30, 2024, we were in compliance with all covenants under the 3.50% FLSO Senior Secured Notes Indenture.

The fair value of the 3.50% FLSO Senior Secured Notes as of June 30, 2024 was $136.9 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% FLSO Senior Secured Notes are classified as Level 2 within the fair value hierarchy.

Existing Debt Instruments

Senior Facilities

Our senior secured credit facilities include the Term Loan Facility and the prior 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 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.

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 a credit spread adjustment of 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, 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 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.

As a result of the Private Exchange and the Public Term Loan Exchange, discussed within “March 2024 Refinancing Transactions” above, over 97% of the $2,181.2 million aggregate principal amount of the Term Loan Facility outstanding as of December 31, 2023 was exchanged or purchased for cancellation.

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, 2024, the contractual interest rate on the Term Loan Facility was 8.19%. We are required to make quarterly principal payments of $0.2 million. 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.

The fair value of the Term Loan Facility as of June 30, 2024 was $28.9 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.

The only financial covenant was with respect to the prior Revolving Credit Facility. As discussed in “March 2024 Refinancing Transactions” above, on March 12, 2024, all revolving lenders under the prior Revolving Credit Facility exchanged their revolving loan commitments for commitments in respect of the New Revolving Credit Facility, which replaces in full the prior Revolving Credit Facility. See “New Revolving Credit Facility” above for information regarding this new debt instrument.

As of June 30, 2024, we were in compliance with all covenants under the Senior Facilities.

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.

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: 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. Notwithstanding the foregoing, Rackspace Technology Global may 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 indenture governing the 3.50% Senior Secured Notes (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, 2024, Rackspace Technology Global was in compliance with all covenants under the 3.50% Notes Indenture.

As a result of the Private Exchange and the Public Note Exchange, discussed above, over 91% of the $513.7 million aggregate principal amount of the 3.50% Senior Secured Notes outstanding as of December 31, 2023 was exchanged or purchased for cancellation.

The fair value of the 3.50% Senior Secured Notes as of June 30, 2024 was $19.1 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 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: 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.

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, included in "Debt modification costs and gain on debt extinguishment", of $94.9 million and $107.7 million, respectively, in our Condensed Consolidated Statements of Comprehensive Income (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.

As previously described in “March 2024 Refinancing Transactions” above, as part of the Private Exchange, we repurchased and cancelled $69.3 million aggregate principal amount of the 5.375% Senior Notes during the six months ended June 30, 2024.

In addition, during the three months ended June 30, 2024, Rackspace Technology Global repurchased and surrendered for cancellation $2.9 million principal amount of 5.375% Senior Notes for $0.8 million. In connection with these repurchases, we recorded a gain, included in "Debt modification costs and gain on debt extinguishment", of $2.1 million, in our Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2024.

The indenture governing the 5.375% Senior Notes ( 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, 2024, 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, 2024 was $34.2 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.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481544/470-10-50-6

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481544/470-10-50-6

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
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-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
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-Paragraph 1B
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
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-URI https://asc.fasb.org/470/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 30
-Name Accounting Standards Codification
-Section 45
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482925/835-30-45-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Customer Contracts - Remaining Performance Obligations (Details) $ in Millions	Jun. 30, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 458.5
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation expected to be recognized, percentage	41.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period	6 months

Customer Contracts - Schedule of Amortization of Capitalized Contract Costs (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Amortization of capitalized sales commissions
Capitalized Contract Cost [Line Items]
Capitalized contract cost, amortization	$ 7.3	$ 9.8	$ 15.5	$ 20.1
Amortization of capitalized implementation costs
Capitalized Contract Cost [Line Items]
Capitalized contract cost, amortization	$ 2.4	$ 3.4	$ 5.1	$ 7.0

Debt - FLSO Term Loan Facility (Details) - USD ($) $ in Millions				3 Months Ended		6 Months Ended
	Jul. 15, 2024	Mar. 12, 2024	Apr. 26, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Debt Instrument [Line Items]
Principal balance				$ 2,483.7		$ 2,483.7		$ 2,892.5
Repayment of debt						91.9	$ 67.0
Debt modification costs and gain on debt extinguishment				$ 72.5	$ 94.9	$ 129.2	$ 107.7
FLSO Term Loan Facility \| Term loan facility
Debt Instrument [Line Items]
Aggregate principal amount		$ 1,687.2
Debt instrument, basis spread on variable rate floor		0.75%
Debt instrument, basis spread on variable rate			2.75%
Effective interest rate				8.19%		8.19%		0.00%
Quarterly principal payment				$ 4.2
Principal balance				1,659.4		$ 1,659.4		$ 0.0
Principal amount repurchased and surrendered for cancellation				19.3
Repayment of debt				9.4
Debt modification costs and gain on debt extinguishment				14.1
Write-off of associated unamortized deferred financing fees				4.1		4.1
Fair value of debt				730.1		730.1
FLSO Term Loan Facility \| Term loan facility \| Subsequent event
Debt Instrument [Line Items]
Principal amount repurchased and surrendered for cancellation	$ 24.2
Repayment of debt	$ 11.2
FLSO Term Loan Facility \| Term loan facility \| Affiliates of ABRY \| Affiliated entity
Debt Instrument [Line Items]
Principal balance				$ 49.8		$ 49.8
Percentage of outstanding principal amount due to related party				3.00%		3.00%
FLSO Term Loan Facility \| Term loan facility \| Apollo Global Management Inc \| Affiliated entity
Debt Instrument [Line Items]
Principal balance				$ 80.9		$ 80.9
Percentage of debt due to related party				4.90%		4.90%
FLSO Term Loan Facility \| Term loan facility \| One- Month Duration SOFR
Debt Instrument [Line Items]
Credit spread adjustment		0.11%
FLSO Term Loan Facility \| Term loan facility \| Three- Month Duration SOFR
Debt Instrument [Line Items]
Credit spread adjustment		0.26%
FLSO Term Loan Facility \| Term loan facility \| Six- Months Duration SOFR
Debt Instrument [Line Items]
Credit spread adjustment		0.43%

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Allowance for doubtful accounts and accrued customer credits	$ 25.8	$ 20.1
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	5,000,000.0	5,000,000.0
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)	228,700,000	220,500,000
Common stock, shares outstanding (in shares)	225,600,000	217,400,000
Treasury stock, at cost (in shares)	3,100,000	3,100,000

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (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, 2022		215.7
Beginning balance at Dec. 31, 2022	$ 629.5	$ 2.2	$ 2,573.3	$ 71.4	$ (1,986.4)	$ (31.0)
Beginning balance (in shares) at Dec. 31, 2022						3.1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options and release of stock awards, net of shares withheld (in shares)		2.7
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) income	(639.2)				(639.2)
Other comprehensive income (loss)	7.5			7.5
Ending balance (in shares) at Jun. 30, 2023		218.8
Ending balance at Jun. 30, 2023	31.9	$ 2.2	2,607.4	78.9	(2,625.6)	$ (31.0)
Ending balance (in shares) at Jun. 30, 2023						3.1
Beginning balance (in shares) at Mar. 31, 2023		218.1
Beginning balance at Mar. 31, 2023	24.4	$ 2.2	2,588.0	63.6	(2,598.4)	$ (31.0)
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, net of shares withheld (in shares)		0.3
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) income	(27.2)				(27.2)
Other comprehensive income (loss)	15.3			15.3
Ending balance (in shares) at Jun. 30, 2023		218.8
Ending balance at Jun. 30, 2023	$ 31.9	$ 2.2	2,607.4	78.9	(2,625.6)	$ (31.0)
Ending balance (in shares) at Jun. 30, 2023						3.1
Beginning balance (in shares) at Dec. 31, 2023	217.4	220.5
Beginning balance at Dec. 31, 2023	$ (154.5)	$ 2.2	2,638.2	60.3	(2,824.2)	$ (31.0)
Beginning balance (in shares) at Dec. 31, 2023	3.1					3.1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options and release of stock awards, net of shares withheld (in shares)		7.9
Exercise of stock options and release of stock awards, net of shares withheld	$ (3.4)	$ 0.1	(3.5)
Issuance of shares from Employee Stock Purchase Plans (in shares)		0.3
Issuance of shares from Employee Stock Purchase Plan	0.4		0.4
Share-based compensation expense for equity classified awards	26.0		26.0
Net (loss) income	(615.6)				(615.6)
Other comprehensive income (loss)	$ (9.1)			(9.1)
Ending balance (in shares) at Jun. 30, 2024	225.6	228.7
Ending balance at Jun. 30, 2024	$ (756.2)	$ 2.3	2,661.1	51.2	(3,439.8)	$ (31.0)
Ending balance (in shares) at Jun. 30, 2024	3.1					3.1
Beginning balance (in shares) at Mar. 31, 2024		226.6
Beginning balance at Mar. 31, 2024	$ (787.2)	$ 2.3	2,647.7	58.6	(3,464.8)	$ (31.0)
Beginning balance (in shares) at Mar. 31, 2024						3.1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options and release of stock awards, net of shares withheld (in shares)		1.8
Issuance of shares from Employee Stock Purchase Plans (in shares)		0.3
Issuance of shares from Employee Stock Purchase Plan	0.4		0.4
Share-based compensation expense for equity classified awards	13.0		13.0
Net (loss) income	25.0				25.0
Other comprehensive income (loss)	$ (7.4)			(7.4)
Ending balance (in shares) at Jun. 30, 2024	225.6	228.7
Ending balance at Jun. 30, 2024	$ (756.2)	$ 2.3	$ 2,661.1	$ 51.2	$ (3,439.8)	$ (31.0)
Ending balance (in shares) at Jun. 30, 2024	3.1					3.1

Property, Equipment and Software, net

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

Property, Equipment and Software, net

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


(In millions)	December 31, 2023		June 30, 2024
Computers and equipment	$	1,154.9	$	1,157.0
Software	452.8		440.4
Furniture and fixtures	14.5		13.8
Buildings and leasehold improvements	411.8		410.9

Property, equipment and software, at cost	2,034.0		2,022.1
Less: Accumulated depreciation	(1,442.1)		(1,422.6)
Work in process	16.9		12.7
Property, equipment and software, net	$	608.8	$	612.2

In October 2022, we announced our intention to sell our current corporate headquarters facility located in Windcrest, Texas and relocate our corporate headquarters to leased office space in San Antonio, Texas. As such, as of December 31, 2022, this property met the criteria to be classified as held for sale under GAAP and the carrying amount of the property was remeasured each reporting period for changes in the estimated fair value, less cost to sell.

In March 2024, we completed the sale of the property. The property’s estimated fair value, less estimated cost to sell prior to the sale was $16.9 million and we received cash proceeds of $17.5 million, less brokerage and professional fees of $0.6 million, resulting in net cash proceeds of $16.9 million. In connection with the completion of the sale, we paid a $9.0 million early termination fee to certain local governments related to our termination of the Master Economic Incentives Agreement (the “MEIA”) associated with the property. This amount is included in “Selling, general and administrative expenses” in our Condensed Consolidated Statements of Comprehensive Income (Loss) for the six months ended June 30, 2024.

Property, Equipment and Software, net (Tables)

6 Months Ended

Jun. 30, 2024

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, 2023		June 30, 2024
Computers and equipment	$	1,154.9	$	1,157.0
Software	452.8		440.4
Furniture and fixtures	14.5		13.8
Buildings and leasehold improvements	411.8		410.9

Property, equipment and software, at cost	2,034.0		2,022.1
Less: Accumulated depreciation	(1,442.1)		(1,422.6)
Work in process	16.9		12.7
Property, equipment and software, net	$	608.8	$	612.2

The table below presents depreciation expense included in segment operating profit above for the three and six months ended June 30, 2023 and 2024.


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2023		2024		2023		2024
Public Cloud	$	2.5	$	2.0	$	4.6	$	3.5
Private Cloud	44.9		28.4		88.8		57.0

Corporate functions	9.3		5.1		17.1		11.2
Total depreciation expense	$	56.7	$	35.5	$	110.5	$	71.7

Customer Contracts - Schedule of Balances Related to Customer Contracts (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 322.8	$ 339.7
Current portion of contract assets	8.2	10.7
Non-current portion of contract assets	6.9	8.6
Current portion of deferred revenue	72.5	78.8
Non-current portion of deferred revenue	3.7	5.3
Allowance for doubtful accounts and accrued customer credits	$ 25.8	$ 20.1

Goodwill and Intangible Assets - Changes in Carrying Amounts of Goodwill by Reportable Segment (Details) - USD ($) $ in Millions				3 Months Ended			6 Months Ended
	Feb. 29, 2024	Mar. 31, 2023	Jan. 01, 2023	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Goodwill [Line Items]
Gross goodwill				$ 2,159.7			$ 2,159.7		$ 2,161.2
Less: impairment charges				(1,282.0)			(1,282.0)		(708.8)
Goodwill [Roll Forward]
Goodwill, beginning balance							1,452.4
Impairment of goodwill				0.0	$ 0.0		(573.2)	$ (543.1)
Foreign currency translation							(1.5)
Goodwill, ending balance				877.7			877.7
Previously Reported
Goodwill [Line Items]
Gross goodwill				3,041.6			3,041.6
Less: impairment charges				(2,163.9)			(2,163.9)
Public Cloud
Goodwill [Line Items]
Gross goodwill				596.6			596.6		597.7
Less: impairment charges				(385.4)			(385.4)		0.0
Goodwill [Roll Forward]
Goodwill, beginning balance							597.7
Impairment of goodwill	$ (385.4)						(385.4)
Foreign currency translation							(1.1)
Goodwill, ending balance				211.2			211.2
Private Cloud
Goodwill [Line Items]
Gross goodwill				1,563.1			1,563.1		1,563.5
Less: impairment charges				(896.6)			(896.6)		$ (708.8)
Goodwill [Roll Forward]
Goodwill, beginning balance							854.7
Impairment of goodwill	$ (187.8)	$ (272.3)	$ (270.8)			$ (270.8)	(187.8)
Foreign currency translation							(0.4)
Goodwill, ending balance				$ 666.5			$ 666.5

Share-Based Compensation

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Share-Based Compensation

On April 22, 2024, 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 57.9 million shares to 87.9 million shares, subject to stockholder approval. The amendment was subsequently approved by our stockholders as part of the 2024 Annual Meeting of Stockholders held on June 14, 2024.

During the six months ended June 30, 2024, we granted 9.5 million restricted stock units ("RSUs") under the 2020 Incentive Plan with a weighted-average grant date fair value of $1.85. 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, 2024, 0.6 million performance stock units ("PSUs") were granted under the 2020 Incentive Plan with a weighted-average grant date fair value of $2.78. The PSUs represent the target amount of grants, and the actual number of shares 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.

Lastly, during the three and six months ended June 30, 2024, we granted 31.8 million long-term incentive cash units (“LTIC units”) under the 2020 Incentive Plan. The awards were valued using a Monte Carlo simulation and as of June 30, 2024 the LTIC units had a weighted average fair value of $0.98. The LTIC units represent the target amount of grants, and the actual number of units awarded upon vesting may vary depending upon the achievement of the relevant market condition which is based on the performance of our common stock. The awards are eligible to vest in equal installments over three years based on the attainment of the market condition and the employee’s continued service through the vesting date. As the company intends to settle the LTIC units in cash, they were classified as liabilities 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)	2023		2024		2023		2024
Equity classified awards	$	18.6	$	13.0	$	33.3	$	26.0
Liability classified awards	0.9		6.5		1.4		6.3
Total share-based compensation expense	$	19.5	$	19.5	$	34.7	$	32.3

Total share-based compensation expense recognized was as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2023		2024		2023		2024
Cost of revenue	$	2.6	$	2.0	$	5.4	$	3.9
Selling, general and administrative expenses	16.9		17.5		29.3		28.4
Pre-tax share-based compensation expense	19.5		19.5		34.7		32.3
Less: Income tax benefit	(4.1)		(4.1)		(7.3)		(6.8)
Total share-based compensation expense, net of tax	$	15.4	$	15.4	$	27.4	$	25.5

As of June 30, 2024, there was $60.8 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.

Derivatives - Narrative (Details)			6 Months Ended
Derivatives - Narrative (Details)	May 09, 2023	Feb. 12, 2021 USD ($)	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)	Jan. 31, 2021 USD ($)	Jan. 09, 2020 USD ($)	Dec. 31, 2016 instrument
Derivative [Line Items]
Accumulated other comprehensive income			$ (51,200,000)	$ (60,300,000)
Cash flow hedge gain expected to be reclassified as a reduction to interest expense over the next twelve months			52,600,000
Derivatives designated as hedging instruments
Derivative [Line Items]
Liabilities			29,000,000.0	37,600,000
Interest rate swaps
Derivative [Line Items]
Liabilities			29,000,000.0	37,600,000
Notional amount		$ 900,000,000	1,350,000,000	1,350,000,000
Accumulated other comprehensive income					$ 51,600,000
Interest rate swaps \| Variable Rate Component One
Derivative [Line Items]
Debt instrument, variable interest rate, type [Extensible Enumeration]		Three- Month LIBOR [Member]
Derivative, floor interest rate		0.75%
Interest rate swaps \| Variable Rate Component Two
Derivative [Line Items]
Debt instrument, variable interest rate, type [Extensible Enumeration]	Secured Overnight Financing Rate (SOFR)	Secured Overnight Financing Rate (SOFR)
Derivative, floor interest rate	0.75%	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
Interest Rate Swap 5 - Entered in February 9 2021
Derivative [Line Items]
Notional amount			$ 1,350,000,000	$ 1,350,000,000
Derivative, fixed interest rate	2.3415%	2.382%	2.3415%

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2024
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

Debt - Existing Debt Instruments (Details) - USD ($)					3 Months Ended		6 Months Ended		80 Months Ended
Debt - Existing Debt Instruments (Details) - USD ($)	Mar. 12, 2024	Apr. 26, 2023	Feb. 09, 2021	Dec. 01, 2020	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Feb. 15, 2028	Dec. 31, 2023
Debt Instrument [Line Items]
Principal balance					$ 2,483,700,000		$ 2,483,700,000			$ 2,892,500,000
Repayment of debt							91,900,000	$ 67,000,000.0
Debt modification costs and gain on debt extinguishment					72,500,000	$ 94,900,000	129,200,000	107,700,000
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		1.00%
Term loan facility \| Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		2.75%
Interest payment period (not exceed)		90 days
Term loan facility \| Base rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		1.75%
Line of credit \| Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity					375,000,000.0		375,000,000.0
Debt instrument, basis spread on variable rate floor		1.00%
Principal balance					0		0
Unused commitment fee percentage			0.50%
Line of credit \| Revolving Credit Facility \| Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		3.00%
Line of credit \| Revolving Credit Facility \| Base rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		2.00%
Senior notes
Debt Instrument [Line Items]
Debt instrument, percent of total debt	64.00%
Term Loan Facility \| Term loan facility
Debt Instrument [Line Items]
Debt instrument, term			7 years
Aggregate principal amount			$ 2,300,000,000
Debt instrument, percent of total debt	72.00%
Principal balance					$ 62,100,000		$ 62,100,000			$ 2,181,200,000
Effective interest rate					8.19%		8.19%			8.23%
Fair value of debt					$ 28,900,000		$ 28,900,000
Term Loan Facility \| Term loan facility \| Forecast \| Subsequent event
Debt Instrument [Line Items]
Quarterly principal payment									$ 200,000
FLFO Term Loan Facility \| Term loan facility
Debt Instrument [Line Items]
Aggregate principal amount	$ 275,000,000
Debt instrument, basis spread on variable rate floor		0.75%
Debt instrument, basis spread on variable rate	6.25%
Principal balance					$ 274,300,000		$ 274,300,000			$ 0
Effective interest rate	1.00%				11.69%		11.69%			0.00%
Quarterly principal payment	$ 700,000
Fair value of debt					$ 276,700,000		$ 276,700,000
FLFO Term Loan Facility \| Term loan facility \| One- Month Duration SOFR
Debt Instrument [Line Items]
Credit spread adjustment		0.11%
FLFO Term Loan Facility \| Term loan facility \| Three- Month Duration SOFR
Debt Instrument [Line Items]
Credit spread adjustment		0.26%
FLFO Term Loan Facility \| Term loan facility \| Six- Months Duration SOFR
Debt Instrument [Line Items]
Credit spread adjustment		0.43%
FLFO Term Loan Facility \| Senior notes
Debt Instrument [Line Items]
Aggregate principal amount	$ 275,000,000
Senior Facilities \| Term loan facility
Debt Instrument [Line Items]
Debt instrument, percent of total debt	97.00%
Principal balance										$ 2,181,200,000
3.50% Senior Secured Notes \| Senior notes
Debt Instrument [Line Items]
Aggregate principal amount			$ 550,000,000.0
Debt instrument, percent of total debt	91.00%
Principal balance					43,900,000		43,900,000			$ 513,700,000
Fair value of debt					$ 19,100,000		$ 19,100,000
Interest rate	3.50%		3.50%		3.50%		3.50%			3.50%
Redemption price, percentage			103.00%
Debt instrument, redemption, period			12 months
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			100.00%
3.50% Senior Secured Notes \| Senior notes \| Commencing with February 9
Debt Instrument [Line Items]
Percent of redeemable debt (up to)			10.00%
3.50% Senior Secured Notes \| Senior notes \| Upon change of control
Debt Instrument [Line Items]
Redemption price, percentage			101.00%
5.375% Senior Notes \| Senior notes
Debt Instrument [Line Items]
Aggregate principal amount				$ 550,000,000.0
Principal balance					$ 125,400,000		$ 125,400,000			$ 197,600,000
Interest rate				5.375%	5.375%		5.375%			5.375%
Principal amount repurchased and surrendered for cancellation					$ 2,900,000	142,100,000	$ 69,300,000	164,800,000
Repayment of debt					800,000	46,800,000		56,800,000
Accrued interest increase						1,000,000		1,300,000
Debt modification costs and gain on debt extinguishment					2,100,000	94,900,000		107,700,000
Write-off of associated unamortized deferred financing fees						$ 1,300,000		$ 1,600,000
Fair value					$ 34,200,000		$ 34,200,000
5.375% Senior Notes \| Senior notes \| Upon change of control
Debt Instrument [Line Items]
Redemption price, percentage				101.00%
5.375% Senior Notes \| Senior notes \| Prior to September 12, 2026
Debt Instrument [Line Items]
Redemption price, percentage				102.688%
5.375% Senior Notes \| Senior notes \| Prepaid on or after September 12, 2026 but prior to September 12 2027
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				100.00%

Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Schedule of Reconciliation of Revenue from Segments to Consolidated


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2023		2024		2023		2024
Revenue by segment:
Public Cloud	$	433.7	$	424.9	$	877.2	$	847.3
Private Cloud	312.6		260.0		627.8		528.4

Total consolidated revenue	$	746.3	$	684.9	$	1,505.0	$	1,375.7

Segment operating profit:
Public Cloud	$	15.8	$	11.8	$	39.2	$	21.1
Private Cloud	88.0		69.7		182.0		141.4

Total consolidated segment operating profit	103.8		81.5		221.2		162.5
Corporate functions	(64.8)		(58.7)		(131.7)		(123.5)
Share-based compensation expense	(19.5)		(19.5)		(34.7)		(32.3)
Special bonuses and other compensation expense (1)	(4.2)		(3.3)		(6.4)		(6.4)
Transaction-related adjustments, net (2)	(1.2)		(1.6)		(2.5)		(2.6)
Restructuring and transformation expenses (3)	(23.1)		(13.7)		(48.7)		(33.7)
Hosted Exchange incident expenses, net of proceeds received or expected to be received under our insurance coverage	(1.7)		0.1		(4.9)		(0.1)
Amortization of intangible assets (4)	(41.0)		(38.6)		(81.9)		(77.3)
Impairment of goodwill	—		—		(543.1)		(573.2)
UK office closure (5)	(12.1)		—		(12.1)		—
Impairment of assets, net	—		—		—		(20.0)

Interest expense	(57.3)		(18.4)		(114.2)		(62.1)
Gain on investments, net	0.1		—		0.2		0.1
Debt modification costs and gain on debt extinguishment	94.9		72.5		107.7		129.2
Other income (expense), net	0.2		(5.2)		2.3		(10.8)
Total consolidated loss before income taxes	$	(25.9)	$	(4.9)	$	(648.8)	$	(650.2)


(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. The six months ended June 30, 2024 also includes a $9.0 million MEIA early termination fee associated with the sale of our corporate headquarters in March 2024.
(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


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2023		2024		2023		2024
Revenue by segment:
Public Cloud	$	433.7	$	424.9	$	877.2	$	847.3
Private Cloud	312.6		260.0		627.8		528.4

Total consolidated revenue	$	746.3	$	684.9	$	1,505.0	$	1,375.7

Segment operating profit:
Public Cloud	$	15.8	$	11.8	$	39.2	$	21.1
Private Cloud	88.0		69.7		182.0		141.4

Total consolidated segment operating profit	103.8		81.5		221.2		162.5
Corporate functions	(64.8)		(58.7)		(131.7)		(123.5)
Share-based compensation expense	(19.5)		(19.5)		(34.7)		(32.3)
Special bonuses and other compensation expense (1)	(4.2)		(3.3)		(6.4)		(6.4)
Transaction-related adjustments, net (2)	(1.2)		(1.6)		(2.5)		(2.6)
Restructuring and transformation expenses (3)	(23.1)		(13.7)		(48.7)		(33.7)
Hosted Exchange incident expenses, net of proceeds received or expected to be received under our insurance coverage	(1.7)		0.1		(4.9)		(0.1)
Amortization of intangible assets (4)	(41.0)		(38.6)		(81.9)		(77.3)
Impairment of goodwill	—		—		(543.1)		(573.2)
UK office closure (5)	(12.1)		—		(12.1)		—
Impairment of assets, net	—		—		—		(20.0)

Interest expense	(57.3)		(18.4)		(114.2)		(62.1)
Gain on investments, net	0.1		—		0.2		0.1
Debt modification costs and gain on debt extinguishment	94.9		72.5		107.7		129.2
Other income (expense), net	0.2		(5.2)		2.3		(10.8)
Total consolidated loss before income taxes	$	(25.9)	$	(4.9)	$	(648.8)	$	(650.2)


(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. The six months ended June 30, 2024 also includes a $9.0 million MEIA early termination fee associated with the sale of our corporate headquarters in March 2024.
(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, 2023		June 30, 2024
Computers and equipment	$	1,154.9	$	1,157.0
Software	452.8		440.4
Furniture and fixtures	14.5		13.8
Buildings and leasehold improvements	411.8		410.9

Property, equipment and software, at cost	2,034.0		2,022.1
Less: Accumulated depreciation	(1,442.1)		(1,422.6)
Work in process	16.9		12.7
Property, equipment and software, net	$	608.8	$	612.2

The table below presents depreciation expense included in segment operating profit above for the three and six months ended June 30, 2023 and 2024.


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2023		2024		2023		2024
Public Cloud	$	2.5	$	2.0	$	4.6	$	3.5
Private Cloud	44.9		28.4		88.8		57.0

Corporate functions	9.3		5.1		17.1		11.2
Total depreciation expense	$	56.7	$	35.5	$	110.5	$	71.7

Goodwill and Intangible Assets - Intangible Assets Other Than Goodwill (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 1,959.0	$ 1,959.8
Accumulated amortization	(1,177.5)	(1,100.8)
Net carrying amount	781.5	859.0
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Gross carrying amount	2,099.0	2,119.8
Accumulated amortization	(1,177.5)	(1,100.8)
Net carrying amount	921.5	1,019.0
Trade name (indefinite-lived)
Indefinite-lived Intangible Assets [Line Items]
Trade name (indefinite-lived)	140.0	160.0
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	1,931.3	1,932.0
Accumulated amortization	(1,150.4)	(1,073.9)
Net carrying amount	780.9	858.1
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated amortization	(1,150.4)	(1,073.9)
Other
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	27.7	27.8
Accumulated amortization	(27.1)	(26.9)
Net carrying amount	0.6	0.9
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated amortization	$ (27.1)	$ (26.9)

Derivatives (Tables)

6 Months Ended

Jun. 30, 2024

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, 2023

June 30, 2024

Notional Amount (in millions)

Status

Notional Amount (in millions)

Status

Maturity Date

Entered into December 2018:

February 3, 2019

2.7490%

—

Matured

—

Matured

November 3, 2023

February 3, 2020

2.7350%

—

Matured

—

Matured

November 3, 2023

February 3, 2021

2.7360%

—

Matured

—

Matured

November 3, 2023

February 3, 2022

2.7800%

—

Matured

—

Matured

November 3, 2023

Entered into February 2021:

February 9, 2021

2.34150% (1)

1,350.0

Active

1,350.0

Active

February 9, 2026

Total

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, 2023 and June 30, 2024 were as follows:


		December 31, 2023				June 30, 2024
(In millions)		Assets		Liabilities		Assets		Liabilities












Derivatives designated as hedging instruments	Location
Interest rate swaps	Other current assets	$	47.0	$	—	$	49.9	$	—
Interest rate swaps	Other non-current assets	36.8		—		27.8		—
Interest rate swaps	Other current liabilities (1)	—		17.3		—		17.3
Interest rate swaps	Other non-current liabilities (1)	—		20.3		—		11.7
Total		$	83.8	$	37.6	$	77.7	$	29.0

(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, 2023						June 30, 2024
(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	$	83.8	$	(37.6)	$	46.2	$	77.7	$	(29.0)	$	48.7



Liabilities
Interest rate swaps	$	37.6	$	(37.6)	$	—	$	29.0	$	(29.0)	$	—

Schedule Offsetting Liabilities Under Master Netting Arrangements


	December 31, 2023						June 30, 2024
(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	$	83.8	$	(37.6)	$	46.2	$	77.7	$	(29.0)	$	48.7



Liabilities
Interest rate swaps	$	37.6	$	(37.6)	$	—	$	29.0	$	(29.0)	$	—

Schedule of Derivative Instruments, Effect on Comprehensive Income (Loss)

The effect of our derivatives and their location on the Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2023 and 2024 was as follows:


		Three Months Ended June 30,				Six Months Ended June 30,
(In millions)		2023		2024		2023		2024
Derivatives not designated as hedging instruments	Location
Interest rate swaps	Interest income (expense)	$	(4.5)	$	—	$	(9.1)	$	—



Derivatives designated as hedging instruments	Location
Interest rate swaps	Interest income (expense)	$	13.5	$	14.9	$	25.7	$	29.8

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References + Details

Customer Contracts

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Customer Contracts

The following table presents the balances related to customer contracts:


(In millions)	Condensed Consolidated Balance Sheets Account	December 31, 2023		June 30, 2024
Accounts receivable, net	Accounts receivable, net (1)	$	339.7	$	322.8
Current portion of contract assets	Other current assets	$	10.7	$	8.2
Non-current portion of contract assets	Other non-current assets	$	8.6	$	6.9
Current portion of deferred revenue	Deferred revenue	$	78.8	$	72.5
Non-current portion of deferred revenue	Other non-current liabilities	$	5.3	$	3.7

(1) Allowance for credit losses and accrued customer credits was $20.1 million and $25.8 million as of December 31, 2023 and June 30, 2024, respectively.

Amounts recognized in revenue for the three months ended June 30, 2023, and 2024, which were included in deferred revenue as of the beginning of each period totaled $44.5 million and $43.9 million, respectively. Amounts recognized in revenue for the six months ended June 30, 2023 and 2024, which were included in deferred revenue as of the beginning of each period totaled $55.1 million and $61.3 million, respectively.

Cost Incurred to Obtain and Fulfill a Contract

As of December 31, 2023 and June 30, 2024, the balances of capitalized costs to obtain a contract were $42.0 million and $34.9 million, respectively, and the balances of capitalized costs to fulfill a contract were $13.4 million and $12.6 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)	2023		2024		2023		2024
Amortization of capitalized sales commissions	$	9.8	$	7.3	$	20.1	$	15.5
Amortization of capitalized implementation costs	$	3.4	$	2.4	$	7.0	$	5.1

Remaining Performance Obligations

As of June 30, 2024, the aggregate amount of transaction price allocated to remaining performance obligations was $458.5 million, of which approximately 41% is expected to be recognized as revenue during the remainder of 2024 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.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org/606/tableOfContent

+ Details

Customer Contracts - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Capitalized Contract Cost [Line Items]
Revenue recognized included in deferred revenue	$ 43.9	$ 44.5	$ 61.3	$ 55.1
Cost To Obtain A Contract
Capitalized Contract Cost [Line Items]
Capitalized contract cost, net	34.9		34.9		$ 42.0
Cost To Fulfill A Contract
Capitalized Contract Cost [Line Items]
Capitalized contract cost, net	$ 12.6		$ 12.6		$ 13.4

Derivatives

6 Months Ended

Jun. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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, FLSO Term Loan Facility, and FLFO 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 for income taxes" under the portfolio approach.

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 approximately $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 7, "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.

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.

In conjunction with the March 2024 Refinancing Transactions, as discussed in Note 7, “Debt”, we issued additional borrowings and used the proceeds to repay previously hedged borrowings under the Term Loan Facility. Given that the specific intent of the new borrowings was a replacement of the previously hedged borrowings and the economic characteristics were the same, we continue to apply hedge accounting on the replacement borrowings.

As of December 31, 2023 and June 30, 2024, 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, 2023

June 30, 2024

Notional Amount (in millions)

Status

Notional Amount (in millions)

Status

Maturity Date

Entered into December 2018:

February 3, 2019

2.7490%

—

Matured

—

Matured

November 3, 2023

February 3, 2020

2.7350%

—

Matured

—

Matured

November 3, 2023

February 3, 2021

2.7360%

—

Matured

—

Matured

November 3, 2023

February 3, 2022

2.7800%

—

Matured

—

Matured

November 3, 2023

Entered into February 2021:

February 9, 2021

2.34150% (1)

1,350.0

Active

1,350.0

Active

February 9, 2026

Total

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, 2023 and June 30, 2024 were as follows:


		December 31, 2023				June 30, 2024
(In millions)		Assets		Liabilities		Assets		Liabilities












Derivatives designated as hedging instruments	Location
Interest rate swaps	Other current assets	$	47.0	$	—	$	49.9	$	—
Interest rate swaps	Other non-current assets	36.8		—		27.8		—
Interest rate swaps	Other current liabilities (1)	—		17.3		—		17.3
Interest rate swaps	Other non-current liabilities (1)	—		20.3		—		11.7
Total		$	83.8	$	37.6	$	77.7	$	29.0

(1) The entire balance is comprised of the financing component of the pay-fixed interest rate swap.


	December 31, 2023						June 30, 2024
(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	$	83.8	$	(37.6)	$	46.2	$	77.7	$	(29.0)	$	48.7



Liabilities
Interest rate swaps	$	37.6	$	(37.6)	$	—	$	29.0	$	(29.0)	$	—

Effect of Derivatives on the Condensed Consolidated Statements of Comprehensive Income (Loss)

The effect of our derivatives and their location on the Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2023 and 2024 was as follows:


		Three Months Ended June 30,				Six Months Ended June 30,
(In millions)		2023		2024		2023		2024
Derivatives not designated as hedging instruments	Location
Interest rate swaps	Interest income (expense)	$	(4.5)	$	—	$	(9.1)	$	—



Derivatives designated as hedging instruments	Location
Interest rate swaps	Interest income (expense)	$	13.5	$	14.9	$	25.7	$	29.8

Interest expense was $57.3 million and $18.4 million for the three months ended June 30, 2023 and 2024, respectively, and $114.2 million and $62.1 million for the six months ended June 30, 2023 and 2024, respectively. As of June 30, 2024, 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 $52.6 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, 2024, our outstanding interest rate swap agreement was in a net asset position.

Segment Reporting - Reconciliation of Revenue and Gross Profits from Segments to Consolidated (Details) - USD ($) $ in Millions				1 Months Ended	3 Months Ended			6 Months Ended
	Feb. 29, 2024	Mar. 31, 2023	Jan. 01, 2023	Mar. 31, 2024	Jun. 30, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue					$ 684.9	$ 746.3		$ 1,375.7	$ 1,505.0
Loss from operations					(53.8)	(63.8)		(706.6)	(644.8)
Share-based compensation expense					(19.5)	(19.5)		(32.3)	(34.7)
Amortization of intangible assets					(38.6)	(41.0)		(77.3)	(81.9)
Impairment of goodwill					0.0	0.0		(573.2)	(543.1)
UK office closure					0.0	(12.1)		0.0	(12.1)
Impairment of assets, net					0.0	0.0		(20.0)	0.0
Interest expense					(18.4)	(57.3)		(62.1)	(114.2)
Gain on investments, net					0.0	0.1		0.1	0.2
Debt modification costs and gain on debt extinguishment					72.5	94.9		129.2	107.7
Other income (expense), net					(5.2)	0.2		(10.8)	2.3
Total consolidated loss before income taxes					(4.9)	(25.9)		(650.2)	(648.8)
Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Loss from operations					81.5	103.8		162.5	221.2
Corporate And Reconciling Items
Segment Reporting, Revenue Reconciling Item [Line Items]
Loss from operations					58.7	64.8		123.5	131.7
Share-based compensation expense					(19.5)	(19.5)		(32.3)	(34.7)
Special bonuses and other compensation expense					(3.3)	(4.2)		(6.4)	(6.4)
Transaction-related adjustments, net					(1.6)	(1.2)		(2.6)	(2.5)
Restructuring and transformation expenses					(13.7)	(23.1)		(33.7)	(48.7)
Hosted Exchange incident expenses, net of proceeds received or expected to be received under our insurance coverage					0.1	(1.7)		(0.1)	(4.9)
UK office closure				$ (9.0)
Public Cloud
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue					424.9	433.7		847.3	877.2
Impairment of goodwill	$ (385.4)							(385.4)
Public Cloud \| Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Loss from operations					11.8	15.8		21.1	39.2
Private Cloud
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue					260.0	312.6		528.4	627.8
Impairment of goodwill	$ (187.8)	$ (272.3)	$ (270.8)				$ (270.8)	(187.8)
Private Cloud \| Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Loss from operations					$ 69.7	$ 88.0		$ 141.4	$ 182.0

Derivatives - Schedule of Fair Values of Derivatives on the Consolidated Balance Sheets (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Interest rate swaps
Derivatives, Fair Value [Line Items]
Assets	$ 77.7	$ 83.8
Liabilities	29.0	37.6
Derivatives designated as hedging instruments
Derivatives, Fair Value [Line Items]
Assets	77.7	83.8
Liabilities	29.0	37.6
Derivatives designated as hedging instruments \| Other current assets \| Interest rate swaps
Derivatives, Fair Value [Line Items]
Assets	49.9	47.0
Liabilities	0.0	0.0
Derivatives designated as hedging instruments \| Other non-current assets \| Interest rate swaps
Derivatives, Fair Value [Line Items]
Assets	27.8	36.8
Liabilities	0.0	0.0
Derivatives designated as hedging instruments \| Other current liabilities \| Interest rate swaps
Derivatives, Fair Value [Line Items]
Assets	0.0	0.0
Liabilities	17.3	17.3
Derivatives designated as hedging instruments \| Other non-current liabilities \| Interest rate swaps
Derivatives, Fair Value [Line Items]
Assets	0.0	0.0
Liabilities	$ 11.7	$ 20.3

Debt - FLFO Term Loan Facility (Details) - USD ($)	Mar. 12, 2024	Apr. 26, 2023	Jun. 30, 2024	Apr. 16, 2024	Dec. 31, 2023	Feb. 09, 2021
FLFO Term Loan Facility \| Term loan facility
Debt Instrument [Line Items]
Aggregate principal amount	$ 275,000,000
Debt instrument, variable interest rate, type [Extensible Enumeration]	Secured Overnight Financing Rate (SOFR)
Debt instrument, basis spread on variable rate floor		0.75%
Debt instrument, basis spread on variable rate	6.25%
Effective interest rate	1.00%		11.69%		0.00%
Quarterly principal payment	$ 700,000
Fair value of debt			$ 276,700,000
FLFO Term Loan Facility \| Term loan facility \| Prior to September 12, 2026
Debt Instrument [Line Items]
Debt instrument, early repayment fee	3.00%
FLFO Term Loan Facility \| Term loan facility \| Prepaid on or after September 12, 2026 but prior to September 12 2027
Debt Instrument [Line Items]
Debt instrument, early repayment fee	1.00%
FLFO Term Loan Facility \| Term loan facility \| One- Month Duration SOFR
Debt Instrument [Line Items]
Credit spread adjustment		0.11%
FLFO Term Loan Facility \| Term loan facility \| Three- Month Duration SOFR
Debt Instrument [Line Items]
Credit spread adjustment		0.26%
FLFO Term Loan Facility \| Term loan facility \| Six- Months Duration SOFR
Debt Instrument [Line Items]
Credit spread adjustment		0.43%
FLFO Term Loan Facility \| Senior notes
Debt Instrument [Line Items]
Aggregate principal amount	$ 275,000,000
3.50% FLSO Senior Secured Notes \| Senior notes
Debt Instrument [Line Items]
Aggregate principal amount	$ 267,300,000			$ 96,900,000
Fair value of debt			$ 136,900,000
Interest rate	3.50%		3.50%			3.50%

Property, Equipment and Software, net - Schedule of Property, Equipment and Software, net (Details) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property, equipment and software, at cost	$ 2,022.1	$ 2,034.0
Less: Accumulated depreciation	(1,422.6)	(1,442.1)
Property, equipment and software, net	612.2	608.8
Computers and equipment
Property, Plant and Equipment [Line Items]
Property, equipment and software, at cost	1,157.0	1,154.9
Software
Property, Plant and Equipment [Line Items]
Property, equipment and software, at cost	440.4	452.8
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, equipment and software, at cost	13.8	14.5
Buildings and leasehold improvements
Property, Plant and Equipment [Line Items]
Property, equipment and software, at cost	410.9	411.8
Work in process
Property, Plant and Equipment [Line Items]
Work in process	$ 12.7	$ 16.9

Share-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2024

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)	2023		2024		2023		2024
Equity classified awards	$	18.6	$	13.0	$	33.3	$	26.0
Liability classified awards	0.9		6.5		1.4		6.3
Total share-based compensation expense	$	19.5	$	19.5	$	34.7	$	32.3

Total share-based compensation expense recognized was as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2023		2024		2023		2024
Cost of revenue	$	2.6	$	2.0	$	5.4	$	3.9
Selling, general and administrative expenses	16.9		17.5		29.3		28.4
Pre-tax share-based compensation expense	19.5		19.5		34.7		32.3
Less: Income tax benefit	(4.1)		(4.1)		(7.3)		(6.8)
Total share-based compensation expense, net of tax	$	15.4	$	15.4	$	27.4	$	25.5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Revenue	$ 684.9	$ 746.3	$ 1,375.7	$ 1,505.0
Cost of revenue	(553.5)	(593.2)	(1,111.5)	(1,182.3)
Gross profit	131.4	153.1	264.2	322.7
Selling, general and administrative expenses	(185.2)	(216.9)	(377.6)	(424.4)
Impairment of goodwill	0.0	0.0	(573.2)	(543.1)
Impairment of assets, net	0.0	0.0	(20.0)	0.0
Loss from operations	(53.8)	(63.8)	(706.6)	(644.8)
Other income (expense):
Interest expense	18.4	57.3	62.1	114.2
Gain on investments, net	0.0	0.1	0.1	0.2
Debt modification costs and gain on debt extinguishment	72.5	94.9	129.2	107.7
Other income (expense), net	(5.2)	0.2	(10.8)	2.3
Total other income (expense)	48.9	37.9	56.4	(4.0)
Loss before income taxes	(4.9)	(25.9)	(650.2)	(648.8)
Benefit (provision) for income taxes	29.9	(1.3)	34.6	9.6
Net income (loss)	25.0	(27.2)	(615.6)	(639.2)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments	(0.8)	2.8	(4.5)	6.2
Unrealized gain on derivative contracts	4.5	19.3	17.6	13.7
Amount reclassified from accumulated other comprehensive income (loss) to earnings	(11.1)	(6.8)	(22.2)	(12.4)
Other comprehensive income (loss)	(7.4)	15.3	(9.1)	7.5
Comprehensive income (loss)	$ 17.6	$ (11.9)	$ (624.7)	$ (631.7)
Net earnings (loss) per share:
Basic (in dollars per share)	$ 0.11	$ (0.13)	$ (2.77)	$ (2.98)
Diluted (in dollars per share)	$ 0.11	$ (0.13)	$ (2.77)	$ (2.98)
Weighted average shares outstanding:
Basic (in shares)	224.5	215.1	222.2	214.2
Diluted (in shares)	229.6	215.1	222.2	214.2

Debt - Schedule of Debt (Details) - USD ($)	Jun. 30, 2024	Apr. 16, 2024	Apr. 02, 2024	Mar. 12, 2024	Dec. 31, 2023	Feb. 09, 2021	Dec. 01, 2020
Debt Instrument [Line Items]
Amount	$ 2,483,700,000				$ 2,892,500,000
Unamortized debt issuance costs, debt premium, and debt discount	386,300,000				(29,900,000)
Total debt	2,870,000,000				2,862,600,000
Less: current portion of debt	(54,000,000.0)				(23,000,000.0)
Debt, excluding current portion	2,816,000,000				$ 2,839,600,000
Line of credit \| Revolving Credit Facility
Debt Instrument [Line Items]
Amount	$ 0
FLSO Term Loan Facility \| Term loan facility
Debt Instrument [Line Items]
Interest Rate	8.19%				0.00%
Amount	$ 1,659,400,000				$ 0
FLSO Term Loan Facility \| Senior notes
Debt Instrument [Line Items]
Interest rate				3.50%
FLFO Term Loan Facility \| Term loan facility
Debt Instrument [Line Items]
Interest Rate	11.69%			1.00%	0.00%
Amount	$ 274,300,000				$ 0
Term Loan Facility \| Term loan facility
Debt Instrument [Line Items]
Interest Rate	8.19%				8.23%
Amount	$ 62,100,000				$ 2,181,200,000
Senior Facilities \| Term loan facility
Debt Instrument [Line Items]
Amount					2,181,200,000
Senior Facilities \| Line of credit \| New Revolving Credit Facility
Debt Instrument [Line Items]
Amount	0
3.50% FLSO Senior Secured Notes \| Senior notes
Debt Instrument [Line Items]
Amount	$ 318,600,000	$ 3,600,000	$ 93,300,000
Interest rate	3.50%			3.50%		3.50%
3.50% Senior Secured Notes \| Senior notes
Debt Instrument [Line Items]
Amount	$ 43,900,000				$ 513,700,000
Interest rate	3.50%			3.50%	3.50%	3.50%
5.375% Senior Notes \| Senior notes
Debt Instrument [Line Items]
Amount	$ 125,400,000				$ 197,600,000
Interest rate	5.375%				5.375%		5.375%

Segment Reporting - Narrative (Details) $ in Millions		3 Months Ended		6 Months Ended
Segment Reporting - Narrative (Details) $ in Millions	Jan. 01, 2023 segment	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)
Revenue, Major Customer [Line Items]
Number of operating segments \| segment	2
Number of reportable segments \| segment	2
Revenue		$ 684.9	$ 746.3	$ 1,375.7	$ 1,505.0
Public Cloud
Revenue, Major Customer [Line Items]
Revenue		424.9	433.7	847.3	877.2
Public Cloud \| Revision of Prior Period, Error Correction, Adjustment
Revenue, Major Customer [Line Items]
Revenue			(1.2)		(2.3)
Private Cloud
Revenue, Major Customer [Line Items]
Revenue		$ 260.0	312.6	$ 528.4	627.8
Private Cloud \| Revision of Prior Period, Error Correction, Adjustment
Revenue, Major Customer [Line Items]
Revenue			$ 1.2		$ 2.3

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-41

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482964/270-10-50-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (ee)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 4: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479941/924-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-5

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-30

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-42

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-40

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-4

+ Details

Share-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024	Apr. 22, 2024	Apr. 21, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 60.8	$ 60.8
2020 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares available for issuance (in shares)			87,900,000	57,900,000
Restricted Stock Units (RSUs) \| 2020 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of awards granted in period (in shares)		9,500,000
Weighted average grant date fair value, RSUs granted during period (in dollars per share)		$ 1.85
Vesting period		3 years
Phantom Share Units (PSUs) \| 2020 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of awards granted in period (in shares)		600,000
Weighted average grant date fair value, RSUs granted during period (in dollars per share)		$ 2.78
Vesting period		3 years
Long-Term Incentive Cash Units (LTIC Units) \| 2020 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of awards granted in period (in shares)	31,800,000	31,800,000
Weighted average grant date fair value, RSUs granted during period (in dollars per share)	$ 0.98	$ 0.98
Vesting period	3 years	3 years

Debt - 3.5% FLSO Senior Secured Notes due 2028 (Details) - USD ($) $ in Millions			3 Months Ended		6 Months Ended
	Mar. 12, 2024	Feb. 09, 2021	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Apr. 16, 2024	Apr. 02, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Principal balance			$ 2,483.7		$ 2,483.7				$ 2,892.5
Repayment of debt					91.9	$ 67.0
Debt modification costs and gain on debt extinguishment			$ 72.5	$ 94.9	$ 129.2	$ 107.7
3.50% FLSO Senior Secured Notes \| Senior notes
Debt Instrument [Line Items]
Interest rate	3.50%	3.50%	3.50%		3.50%
Aggregate principal amount	$ 267.3						$ 96.9
Principal balance			$ 318.6		$ 318.6		$ 3.6	$ 93.3
Redemption price, percentage		101.00%
Principal amount repurchased and surrendered for cancellation			45.7
Repayment of debt			19.3
Accrued interest increase			0.4
Debt modification costs and gain on debt extinguishment			33.0
Write-off of associated unamortized deferred financing fees			6.3		6.3
Fair value of debt			$ 136.9		$ 136.9
3.50% FLSO Senior Secured Notes \| Senior notes \| Prior to September 15, 2025
Debt Instrument [Line Items]
Redemption price, percentage	100.00%
3.50% FLSO Senior Secured Notes \| Senior notes \| Upon change of control
Debt Instrument [Line Items]
Redemption price, percentage	100.00%