0001810019-21-000038 | 10-K | XBRL Viewer

Financing Obligations (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Future Payments Under Financing Obligations

As of December 31, 2020, future payments under financing obligations were as follows:


(In millions)	Amount
Year ending:
2021	$	56.3
2022	40.5
2023	4.1
2024	3.6
2025	3.7
Thereafter	30.6
Total future payments	138.8
Plus amount representing residual asset balance	14.3
Less amount representing interest	(30.2)
Total financing obligations	$	122.9

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 104.7	$ 83.8
Accounts receivable, net of allowance for doubtful accounts and accrued customer credits of $17.0 and $28.3, respectively	483.0	350.3
Prepaid expenses	123.8	76.2
Other current assets	47.0	33.4
Total current assets	758.5	543.7
Property, equipment and software, net	884.6	727.8
Goodwill, net	2,761.1	2,745.8
Intangible assets, net	1,646.3	1,817.4
Operating right-of-use assets	171.1	308.3
Other non-current assets	156.2	129.4
Total assets	6,377.8	6,272.4
Current liabilities:
Accounts payable and accrued expenses	285.4	260.4
Accrued compensation and benefits	110.6	128.5
Deferred revenue	76.7	66.6
Debt	43.4	29.0
Accrued interest	26.5	36.0
Operating lease liabilities	62.2	58.3
Financing obligations	48.8	42.9
Other current liabilities	88.6	50.2
Total current liabilities	742.2	671.9
Debt	3,319.3	3,844.3
Operating lease liabilities	118.2	256.5
Finance lease liabilities	358.1	88.4
Financing obligations	74.1	86.4
Deferred income taxes	236.7	326.9
Other non-current liabilities	145.5	99.2
Total liabilities	4,994.1	5,373.6
Commitments and Contingencies (Note 10)
Stockholders' equity:
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; 165.4 and 201.8 shares issued and outstanding, respectively	2.0	1.6
Additional paid-in capital	2,363.6	1,602.7
Accumulated other comprehensive income (loss)	(18.6)	12.0
Accumulated deficit	(963.3)	(717.5)
Total stockholders' equity	1,383.7	898.8
Total liabilities and stockholders' equity	$ 6,377.8	$ 6,272.4

Consolidated Statements of Cash Flows - USD ($)

12 Months Ended

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

Cash Flows From Operating Activities

Net loss

$ (245,800,000)

$ (102,300,000)

$ (470,600,000)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

466,200,000

496,000,000.0

611,000,000.0

Amortization of operating right-of-use assets

70,700,000

70,500,000

Deferred income taxes

(73,600,000)

(40,700,000)

(24,600,000)

Share-based compensation expense

74,500,000

30,200,000

20,000,000.0

Impairment of goodwill

295,000,000.0

Gain on sale

(2,100,000)

Gain (loss) on extinguishment of debt

71,500,000

(9,800,000)

(500,000)

Unrealized (gain) loss on derivative contracts

(2,300,000)

54,000,000.0

(4,600,000)

Gain on investments, net

(700,000)

(99,500,000)

(4,600,000)

Provision for bad debts and accrued customer credits

24,700,000

17,800,000

12,600,000

Amortization of debt issuance costs and debt discount

18,000,000.0

18,300,000

18,000,000.0

Other operating activities

(1,400,000)

(400,000)

300,000

Changes in operating assets and liabilities, net of effects of acquisitions:

Accounts receivable

(156,000,000.0)

(42,200,000)

(32,300,000)

Prepaid expenses and other current assets

(58,000,000.0)

(10,200,000)

(1,400,000)

Accounts payable, accrued expenses, and other current liabilities

(7,400,000)

(32,700,000)

51,200,000

Deferred revenue

9,900,000

11,600,000

9,800,000

Operating lease liabilities

(58,000,000.0)

(78,100,000)

Other non-current assets and liabilities

(15,600,000)

12,500,000

(49,500,000)

Net cash provided by operating activities

116,700,000

292,900,000

429,800,000

Cash Flows From Investing Activities

Purchases of property, equipment and software

(116,500,000)

(198,000,000.0)

(294,300,000)

Acquisitions, net of cash acquired

(9,500,000)

(316,100,000)

(65,300,000)

Proceeds from sales

16,800,000

100,000

Proceeds from sales of investments

900,000

109,500,000

8,800,000

Other investing activities

(3,300,000)

1,300,000

2,400,000

Net cash used in investing activities

(128,400,000)

(386,500,000)

(348,300,000)

Cash Flows From Financing Activities

Proceeds from issuance of common stock, net

657,800,000

3,200,000

Proceeds from employee stock plans

31,100,000

Shares of common stock withheld for employee taxes

(2,100,000)

(1,100,000)

Repurchase of common stock

(2,200,000)

Cash settlement of share-based awards

(1,500,000)

Proceeds from borrowings under long-term debt arrangements

860,000,000.0

225,000,000.0

Payments on long-term debt

(1,450,600,000)

(320,000,000.0)

(30,900,000)

Payments for debt issuance costs

(8,800,000)

Principal payments of capital leases

(21,000,000.0)

Principal payments of finance lease liabilities

(24,000,000.0)

(19,900,000)

Proceeds from financing obligations

20,900,000

62,600,000

Principal payments of financing obligations

(54,400,000)

(22,100,000)

(5,000,000.0)

Net cash provided by (used in) financing activities

29,900,000

(79,200,000)

(53,700,000)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

2,800,000

1,700,000

(4,500,000)

Increase (decrease) in cash, cash equivalents, and restricted cash

21,000,000.0

(171,100,000)

23,300,000

Cash, cash equivalents, and restricted cash at beginning of period

87,100,000

258,200,000

234,900,000

Cash, cash equivalents, and restricted cash at end of period

108,100,000

87,100,000

258,200,000

Supplemental Cash Flow Information

Cash payments for interest, net of amount capitalized

262,800,000

265,300,000

262,500,000

Cash payments for income taxes, net of refunds

15,600,000

7,200,000

13,900,000

Non-cash Investing and Financing Activities

Acquisition of property and equipment by capital leases

300,000

Acquisition of property and equipment by finance leases

93,700,000

12,600,000

Acquisition of property, equipment and software by financing obligations

27,800,000

3,100,000

Increase (decrease) in property, equipment and software accrued in liabilities

(13,400,000)

(4,000,000.0)

53,500,000

Non-cash purchases of property, equipment and software

108,100,000

11,700,000

53,800,000

Non-cash increase in buildings within property, equipment and software, net due to lease modification

220,300,000

Additional finance obligations for built-to suit leases and other non-cash investing and financing activities

^[1]

2,300,000

1,200,000

2,500,000

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]

Total cash, cash equivalents, and restricted cash shown in the statement of cash flows

$ 108,100,000

$ 87,100,000

$ 258,200,000

[1]	Represents additional finance obligations for build-to-suit arrangements for the year ended December 31, 2018 only, and other non-cash investing and financing activities for all years presented.

Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies - Derivative Instruments (Details) $ in Millions	Dec. 31, 2020 USD ($)	Jan. 09, 2020 USD ($)	Dec. 31, 2019 USD ($) instrument
Derivative [Line Items]
Liabilities	$ 88.7		$ 39.5
Derivatives designated as hedging instruments
Derivative [Line Items]
Liabilities	87.0		0.0
Interest rate swaps
Derivative [Line Items]
Liabilities	$ 87.0		$ 36.6
Interest rate swaps \| Cash Flow Hedging
Derivative [Line Items]
Number of derivative instruments \| instrument			0
Interest rate swaps \| Cash Flow Hedging \| Derivatives designated as hedging instruments
Derivative [Line Items]
Liabilities		$ 39.9

Leases - Cost (Details) - USD ($) $ in Millions	12 Months Ended
Leases - Cost (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Operating lease expense:
Fixed lease expense	$ 80.2	$ 107.6
Variable lease expense	19.5	13.9
Short-term lease expense	10.3	4.3
Sublease income	(3.1)	(2.5)
Total operating lease expense	106.9	123.3
Finance lease expense:
Depreciation of finance lease assets	30.2	7.9
Interest expense on finance lease liabilities	19.4	8.2
Total finance lease expense	$ 49.6	$ 16.1

Customer Contracts

12 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

Customer Contracts

The following table presents the balances related to customer contracts as of December 31, 2019 and 2020:


(In millions)	Consolidated Balance Sheets Account	December 31, 2019		December 31, 2020
Accounts receivable, net	Accounts receivable, net (1)	$	350.3	$	483.0
Current portion of contract assets	Other current assets	7.8		12.2
Non-current portion of contract assets	Other non-current assets	7.2		13.9
Current portion of deferred revenue	Deferred revenue	66.6		76.7
Non-current portion of deferred revenue	Other non-current liabilities	14.2		14.2

(1) Allowance for doubtful accounts and accrued customer credits was $17.0 million and $28.3 million as of December 31, 2019 and 2020, respectively.

The following table sets forth the changes in the allowance for doubtful accounts during the years ended December 31, 2018, 2019 and 2020:


(In millions)	Beginning Balance		Additions (1)		Write-offs of Accounts Receivables, Net of Recoveries		Ending Balance
For the years ending December 31,
2018	$	5.6	$	12.7	$	(10.8)	$	7.5
2019	7.5		13.3		(11.3)		9.5
2020	9.5		20.1		(13.4)		16.2

(1) Additions to the allowance for doubtful accounts are charged to bad debt within selling, general and administrative expense.

Amounts recognized in revenue for the years ended December 31, 2018, 2019 and 2020, which were included in deferred revenue as of the beginning of each period totaled $35.1 million, $47.6 million and $59.5 million, respectively.

Cost Incurred to Obtain and Fulfill a Contract

As of December 31, 2019 and 2020, the balances of capitalized costs to obtain a contract were $55.1 million and $59.3 million, respectively, and the balances of capitalized costs to fulfill a contract were $21.7 million and $25.0 million, respectively. These capitalized costs are included in "Other non-current assets" on the Consolidated Balance Sheets.

Amortization of capitalized sales commissions and implementation costs for the years ended December 31, 2018, 2019 and 2020 was as follows:


	Year Ended December 31,
(In millions)	2018		2019		2020
Amortization of capitalized sales commissions	$	27.2	$	40.9	$	44.2
Amortization of capitalized implementation costs	9.5		14.8		17.4

Remaining Performance Obligations

As of December 31, 2020, the aggregate amount of transaction price allocated to remaining performance obligations was $922.9 million, of which 60% is expected to be recognized as revenue during 2021 and the remainder thereafter. These remaining performance obligations primarily relate to our fixed-term arrangements. Our other revenue arrangements are usage-based, and as such, 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Investments - Narrative (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
Investments - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	May 31, 2019
Schedule of Equity Method Investments [Line Items]
Equity investment without readily determinable fair value	$ 0.1	$ 5.1	$ 0.1
Gain on investments, net		$ 0.7	99.5	$ 4.6
Realized gain upon receipt of proceeds related to sale			$ 96.9
CrowdStrike Holdings, Inc.
Schedule of Equity Method Investments [Line Items]
Equity investment without readily determinable fair value					$ 10.0
Proceeds from sale of equity investment	$ 106.9
Mailgun Technologies
Schedule of Equity Method Investments [Line Items]
Gain on investments, net				$ 3.8

Financing Obligations - Future Payments Under Financing Obligations (Details) $ in Millions	Dec. 31, 2020 USD ($)
Debt Disclosure [Abstract]
2021	$ 56.3
2022	40.5
2023	4.1
2024	3.6
2025	3.7
Thereafter	30.6
Total future payments	138.8
Plus amount representing residual asset balance	14.3
Less amount representing interest	(30.2)
Total financing obligations	$ 122.9

Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies - Leases (Details)	12 Months Ended
	Dec. 31, 2020
Minimum \| Data Centers
Lessee, Lease, Description [Line Items]
Lease term	1 year
Minimum \| Equipment
Lessee, Lease, Description [Line Items]
Lease term	2 years
Minimum \| Office Space
Lessee, Lease, Description [Line Items]
Operating lease, lease term	1 year
Maximum \| Data Centers
Lessee, Lease, Description [Line Items]
Lease term	20 years
Maximum \| Equipment
Lessee, Lease, Description [Line Items]
Lease term	5 years
Maximum \| Office Space
Lessee, Lease, Description [Line Items]
Operating lease, lease term	10 years

Financing Obligations

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Financing Obligations

We have entered into installment payment arrangements with certain equipment and software vendors. In addition, we have entered into certain sale-leaseback agreements that do not qualify as asset sales and are accounted for as failed sale-leasebacks. These arrangements include the sale and leaseback of equipment with third party financial institutions and certain property leases we assumed upon the acquisition of Datapipe.

The weighted average imputed interest rate for our financing obligations was 7.3% as of December 31, 2020.

As of December 31, 2020, future payments under financing obligations were as follows:


(In millions)	Amount
Year ending:
2021	$	56.3
2022	40.5
2023	4.1
2024	3.6
2025	3.7
Thereafter	30.6
Total future payments	138.8
Plus amount representing residual asset balance	14.3
Less amount representing interest	(30.2)
Total financing obligations	$	122.9

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 176.3	$ 167.5	$ 164.2

Share-Based Compensation, Settlement of Share-Based Awards, and Employee Benefit Plans - Stock Option Activity (Details) - Options - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Number of Shares (in millions)
Beginning balance, shares outstanding (in shares)	19.8
Granted (in shares)	8.2
Exercised (in shares)	(2.6)
Forfeited (in shares)	(6.2)
Expirations (in shares)	(0.6)
Ending balance, shares outstanding (in shares)	18.6	19.8
Vested and exercisable (in shares)	4.0
Vested and exercisable at December 31, 2020 and expected to vest thereafter (in shares)	18.6
Weighted Average Exercise Price
Weighted average exercise price, beginning balance (in usd per share)	$ 12.24
Weighted average exercise price per option granted, exercise price (in usd per share)	13.11
Weighted average exercise price per option exercised, exercise price (in usd per share)	10.92
Weighted average exercise price per option forfeited, exercise price (in usd per share)	12.60
Weighted average exercise price per option expired, exercise price (in usd per share)	11.96
Weighted average exercise price, ending balance (in usd per share)	12.69	$ 12.24
Weighted average exercise price, vested and exercisable, exercise price (in usd per share)	11.73
Weighted average exercise price, vested and exercisable at December 31, 2020 and expected to vest thereafter, exercise price (in usd per share)	$ 12.69
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted Average-Remaining Contractual Life	7 years 11 months 8 days	8 years 7 months 20 days
Weighted average remaining contractual life, vested and exercisable at December 31, 2020	6 years 9 months 3 days
Weighted average remaining contractual life, vested and exercisable at December 31, 2020 and expected to vest thereafter	7 years 11 months 8 days
Aggregate intrinsic value, outstanding	$ 118.4	$ 21.7
Aggregate intrinsic value, vested and exercisable at December 31, 2020	29.2
Aggregate intrinsic value, vested and exercisable at December 31, 2020 and expected to vest thereafter	$ 118.4

Taxes - Benefit for Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Current Income Tax Expense (Benefit), Continuing Operations [Abstract]
Federal	$ (4.1)	$ 5.1	$ (6.0)
Foreign	9.6	12.1	15.6
State	1.9	3.5	(16.8)
Total current	7.4	20.7	(7.2)
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract]
Federal	(58.6)	(32.4)	(22.5)
Foreign	(6.0)	2.0	(3.4)
State	(9.0)	(10.3)	3.2
Total deferred	(73.6)	(40.7)	(22.7)
Total benefit for income taxes	$ (66.2)	$ (20.0)	$ (29.9)

Stockholders' Equity (Details) $ in Millions		12 Months Ended
Stockholders' Equity (Details) $ in Millions	Sep. 06, 2017 shares	Dec. 31, 2020 USD ($) classOfStock vote shares	Dec. 31, 2019 USD ($) shares	Dec. 31, 2018 USD ($)
Class of Stock [Line Items]
Common stock, shares issued (in shares)		201,800,000	165,400,000
Common stock, shares outstanding (in shares)		201,800,000	165,400,000
Number of common stock classes \| classOfStock		1
Number of votes per share \| vote		1
Preferred stock, shares authorized (in shares)		5,000,000.0	5,000,000.0
Preferred stock, shares outstanding (in shares)		0	0
Preferred stock, shares issued (in shares)		0	0
Repurchase of common stock \| $		$ 0.0	$ (2.2)	$ 0.0
Stock repurchased and retired, amount \| $			$ 2.2
Maximum \| DataPipe
Class of Stock [Line Items]
Shares of stock issued and sold in public offering (in shares)	10,663,741
Common Stock
Class of Stock [Line Items]
Shares repurchased and retired (in shares)			200,000
Additional Paid-In Capital
Class of Stock [Line Items]
Stock repurchased and retired, amount \| $			$ 2.2

Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies - Subsequent Events (Details) - USD ($)					12 Months Ended
	Feb. 09, 2021	Feb. 02, 2021	Jan. 15, 2021	Aug. 07, 2020	Dec. 31, 2020	Feb. 12, 2021	Jan. 14, 2021	Dec. 31, 2019	Nov. 03, 2016
Subsequent Event [Line Items]
Principal balance					$ 3,410,600,000			$ 3,944,800,000
Line of Credit \| Senior Facilities \| Revolving Credit Facility
Subsequent Event [Line Items]
Maximum borrowing capacity				$ 375,000,000.0	375,000,000.0				$ 225,000,000.0
Line of Credit \| Senior Facilities \| Revolving Credit Facility \| LIBOR
Subsequent Event [Line Items]
Debt instrument, basis spread on variable rate floor				1.00%
Debt instrument, basis spread on variable rate				3.00%
Line of Credit \| Senior Facilities \| Revolving Credit Facility \| Base rate
Subsequent Event [Line Items]
Debt instrument, basis spread on variable rate				2.00%
Term Loan Facility \| Senior Facilities
Subsequent Event [Line Items]
Principal balance					$ 2,795,600,000			$ 2,824,600,000	$ 2,000,000,000.0
Quarterly amortization payment, percentage					1.00%
Term Loan Facility \| Senior Facilities \| Maximum
Subsequent Event [Line Items]
Interest payment period					90 days
Term Loan Facility \| Senior Facilities \| LIBOR
Subsequent Event [Line Items]
Debt instrument, basis spread on variable rate floor					1.00%
Debt instrument, basis spread on variable rate					1.00%
Term Loan Facility \| Senior Facilities \| Base rate
Subsequent Event [Line Items]
Debt instrument, basis spread on variable rate					0.50%
Subsequent Event
Subsequent Event [Line Items]
Land available-for-sale							$ 11,000,000
Proceeds from sale of land			$ 32,000,000
Gain on sale of land			$ 21,000,000
Subsequent Event \| Interest rate swaps
Subsequent Event [Line Items]
Notional amount						$ 1,350,000,000
Fixed interest rate specified in swap agreement						2.382%
Subsequent Event \| LIBOR \| Interest rate swaps
Subsequent Event [Line Items]
Variable interest rate, floor						0.75%
Subsequent Event \| Senior notes \| 3.50% First Priority Senior Secured Notes
Subsequent Event [Line Items]
Aggregate principal amount	$ 550,000,000.0
Stated interest rate	3.50%
Subsequent Event \| Term Loan Facility \| Senior Facilities
Subsequent Event [Line Items]
Debt instrument, term	7 years
Principal balance	$ 2,300,000,000.0
Quarterly amortization payment, percentage	1.00%
Subsequent Event \| Term Loan Facility \| Senior Facilities \| Maximum
Subsequent Event [Line Items]
Interest payment period	90 days
Subsequent Event \| Term Loan Facility \| Senior Facilities \| LIBOR
Subsequent Event [Line Items]
Debt instrument, basis spread on variable rate floor	0.75%
Debt instrument, basis spread on variable rate	2.75%
Subsequent Event \| Term Loan Facility \| Senior Facilities \| Federal Funds Rate
Subsequent Event [Line Items]
Debt instrument, basis spread on variable rate	0.50%
Subsequent Event \| Term Loan Facility \| Senior Facilities \| One-month Adjusted LIBOR
Subsequent Event [Line Items]
Debt instrument, basis spread on variable rate	1.00%
Subsequent Event \| Term Loan Facility \| Senior Facilities \| Base rate
Subsequent Event [Line Items]
Debt instrument, basis spread on variable rate	1.75%
Subsequent Event \| DataPipe
Subsequent Event [Line Items]
Shares of common stock issued (in shares)		2,665,935

Debt - Narrative (Details)			2 Months Ended	4 Months Ended	12 Months Ended
Debt - Narrative (Details)	Feb. 09, 2021 USD ($)	Aug. 07, 2020 USD ($)	Feb. 26, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 01, 2020 USD ($)	Aug. 31, 2020 USD ($)	Jul. 20, 2020	Mar. 19, 2020 USD ($)	Nov. 03, 2016 USD ($)
Debt Instrument [Line Items]
Principal balance				$ 3,410,600,000	$ 3,410,600,000	$ 3,944,800,000
Amortization period				5 years	5 years
Outstanding borrowings				$ 3,362,700,000	$ 3,362,700,000	3,873,300,000
Gain (loss) on debt extinguishment					71,500,000	(9,800,000)	$ (500,000)
Line of Credit \| Accounts Receivable Financing Agreement
Debt Instrument [Line Items]
Principal balance				65,000,000.0	65,000,000.0
Outstanding borrowings				65,000,000.0	65,000,000.0
Term Loan Facility \| Senior Facilities
Debt Instrument [Line Items]
Principal balance				2,795,600,000	$ 2,795,600,000	2,824,600,000						$ 2,000,000,000.0
Quarterly amortization payment, percentage					1.00%
Quarterly principal payment					$ 7,200,000
Outstanding borrowings				$ 2,755,300,000	$ 2,755,300,000	2,771,100,000
Effective interest rate				4.00%	4.00%
Fair value of debt				$ 2,785,100,000	$ 2,785,100,000
Term Loan Facility \| Senior Facilities \| Subsequent Event
Debt Instrument [Line Items]
Principal balance	$ 2,300,000,000.0
Quarterly amortization payment, percentage	1.00%
Term Loan Facility \| Senior Facilities \| Maximum
Debt Instrument [Line Items]
Interest payment period					90 days
Term Loan Facility \| Senior Facilities \| Maximum \| Subsequent Event
Debt Instrument [Line Items]
Interest payment period	90 days
Term Loan Facility \| Senior Facilities \| LIBOR
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate floor					1.00%
Debt instrument, basis spread on variable rate					1.00%
Term Loan Facility \| Senior Facilities \| LIBOR \| Subsequent Event
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate floor	0.75%
Debt instrument, basis spread on variable rate	2.75%
Term Loan Facility \| Senior Facilities \| Base rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate					0.50%
Term Loan Facility \| Senior Facilities \| Base rate \| Subsequent Event
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.75%
Senior notes \| 8.625% Senior Notes due 2024
Debt Instrument [Line Items]
Principal balance						1,120,200,000
Outstanding borrowings				0	$ 0	1,102,200,000
Aggregate principal amount												$ 1,200,000,000.0
Stated interest rate												8.625%
Debt issuance costs												$ 31,700,000
Principal amount repurchased and surrendered for cancellation						77,300,000
Debt repurchased and surrendered for cancellation				1,191,900,000		66,900,000
Accrued interest included within repurchased and surrendered debt						800,000
Debt instrument, aggregate principal amount subject to repurchase under tender offer									$ 1,120,200,000
Gain (loss) on debt extinguishment						$ (9,800,000)
Premium on repurchase					56,200,000
Write-off of associated unamortized deferred financing fees					14,900,000
Transaction fees					400,000
Senior notes \| 5.375% Senior Notes due 2028
Debt Instrument [Line Items]
Principal balance				550,000,000.0	550,000,000.0
Outstanding borrowings				542,400,000	$ 542,400,000
Aggregate principal amount								$ 550,000,000.0
Stated interest rate								5.375%
Redemption price, percentage					105.375%
Percentage of aggregate principal amount					40.00%
Fair value of senior notes				574,800,000	$ 574,800,000
Senior notes \| 5.375% Senior Notes due 2028 \| Prior to December 1, 2023
Debt Instrument [Line Items]
Redemption price, percentage					100.00%
Senior notes \| 5.375% Senior Notes due 2028 \| December 1, 2023 to December 1, 2024
Debt Instrument [Line Items]
Redemption price, percentage					102.688%
Senior notes \| 5.375% Senior Notes due 2028 \| December 1, 2024 to December 1, 2025
Debt Instrument [Line Items]
Redemption price, percentage					101.344%
Senior notes \| 5.375% Senior Notes due 2028 \| December 1, 2025 and thereafter
Debt Instrument [Line Items]
Redemption price, percentage					100.00%
Revolving Credit Facility \| Other non-current assets
Debt Instrument [Line Items]
Debt issuance costs included in other noncurrent assets				600,000	$ 600,000
Revolving Credit Facility \| Line of Credit \| Senior Facilities
Debt Instrument [Line Items]
Total commitments		$ 375,000,000.0		375,000,000.0	375,000,000.0							$ 225,000,000.0
Debt instrument, leverage ratio		5.00								3.50
Debt instrument, covenant, undrawn letters of credit and cash collateralized letters of credit excluded from threshold trigger		$ 25,000,000.0
Debt instrument, covenant, percentage of outstanding borrowings trigger, minimum		35.00%
Borrowings from long-term lines of credit					245,000,000.0
Repayments of long-term lines of credit					245,000,000.0
Outstanding borrowings				0	0
Revolving Credit Facility \| Line of Credit \| Senior Facilities \| LIBOR
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate floor		1.00%
Debt instrument, basis spread on variable rate		3.00%
Revolving Credit Facility \| Line of Credit \| Senior Facilities \| Base rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		2.00%
Revolving Credit Facility \| Line of Credit \| Accounts Receivable Financing Agreement
Debt Instrument [Line Items]
Total commitments											$ 100,000,000.0
Debt issuance costs included in other noncurrent assets											$ 1,000,000.0
Outstanding borrowings				$ 65,000,000.0	$ 65,000,000.0
Interest rate at period end				2.37%	2.37%
Revolving Credit Facility \| Line of Credit \| Accounts Receivable Financing Agreement \| Subsequent Event
Debt Instrument [Line Items]
Payments on long-term debt			$ 15,000,000.0

Related Party Transactions	12 Months Ended
Related Party Transactions	Dec. 31, 2020
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions On November 3, 2016, we entered into management consulting agreements with affiliates of Apollo and Searchlight and on November 15, 2017, in connection with the Datapipe acquisition, we entered into a management consulting agreement with ABRY. Under these agreements, we are required to pay them a quarterly, nonrefundable fee for consulting services in areas such as finance, strategy, investment, and acquisitions based on EBITDA, as defined in the First Lien Credit Agreement. For Apollo and Searchlight, the consulting fee is equal to 1.5% of EBITDA, or a minimum annual consulting fee of $10.0 million. Under the ABRY agreement, the consulting fee is equal to a specified percentage of 1.5% of EBITDA. For the years ended December 31, 2018, 2019 and 2020, we recorded $15.2 million, $12.9 million and $8.4 million, respectively, of management consulting fees within "Selling, general and administrative expenses" in the Consolidated Statements of Comprehensive Loss. In addition, we are required to pay a fee related to acquisitions. In connection with the 2018 acquisition of RelationEdge, we recorded $0.7 million in fees to affiliates of Apollo, Searchlight, and ABRY within "Selling, general and administrative expenses" in the Consolidated Statements of Comprehensive Loss. In connection with the 2019 acquisition of Onica, we recorded $3.3 million in fees to affiliates of Apollo, Searchlight, and ABRY within "Selling, general and administrative expenses" in the Consolidated Statements of Comprehensive Loss. On July 24, 2020, we executed termination letters with each of the parties to the above agreements, whereby all such agreements terminated effective as of the pricing of the IPO on August 4, 2020. Therefore no management consulting or acquisition-related fees were accrued or were payable under any of these agreements for periods subsequent to August 4, 2020. Affiliates of ABRY are also Term Loan Facility lenders under the First Lien Credit Agreement. As of December 31, 2020, the outstanding principal amount of the Term Loan Facility was $2,795.6 million, of which $48.7 million, or 1.7%, is due to ABRY affiliates. As part of the IPO, Apollo Global Securities, LLC ("Apollo Global Securities"), an affiliate of Apollo, received fees of $2.7 million in connection with their role as an underwriter in the IPO. Apollo Global Securities also received approximately $0.6 million in connection with their role as an initial purchaser of the 5.375% Senior Notes issued on December 1, 2020.

Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies - Sale of Stock (Details) $ / shares in Units, $ in Millions	Aug. 07, 2020 USD ($) $ / shares shares	Jul. 20, 2020
Subsidiary or Equity Method Investee [Line Items]
Stock split, conversion ratio		12
IPO
Subsidiary or Equity Method Investee [Line Items]
Shares of stock issued and sold in public offering (in shares) \| shares	33,500,000
Public offering price (in usd per share) \| $ / shares	$ 21.00
Proceeds from IPO	$ 666.6
Underwriters' discounts and commissions	36.9
Offering expenses	$ 8.8

Goodwill and Intangible Assets - Future Amortization of Intangible Assets (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
2021	$ 173.6
2022	171.8
2023	167.6
2024	159.6
2025	151.9
Thereafter	571.8
Net carrying amount	$ 1,396.3	$ 1,567.4

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2020

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) consisted of the following:


(In millions)	Accumulated Foreign Currency Translation Adjustments		Accumulated Loss on Derivative Contracts		Accumulated Other Comprehensive Income (Loss)
Balance at December 31, 2017	$	17.8	$	—	$	17.8
Foreign currency translation adjustments, net of tax expense of $0.1 million	(17.8)		—		(17.8)


Balance at December 31, 2018	$	—	$	—	$	—
Foreign currency translation adjustments, net of tax benefit of $0.2 million	12.0		—		12.0


Balance at December 31, 2019	$	12.0	$	—	$	12.0
Foreign currency translation adjustments, net of tax expense of $1.1 million	8.8		—		8.8
Unrealized loss on derivative contracts, net of tax benefit of $16.3 million	—		(47.6)		(47.6)
Amount reclassified from Accumulated comprehensive income (loss) into earnings, net of tax benefit of $2.8 million (1)	—		8.2		8.2
Balance at December 31, 2020	$	20.8	$	(39.4)	$	(18.6)

(1) Includes interest expense recognized of $16.8 million, partially offset by amortization of off-market swap value of $5.8 million for the year ended December 31, 2020.

Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies - Revenue (Details)	12 Months Ended
	Dec. 31, 2020
Segment Reporting, Revenue Reconciling Item [Line Items]
Expected service delivery period	30 months
Multi-Cloud Services
Segment Reporting, Revenue Reconciling Item [Line Items]
Multicloud services offerings term	36 months

Customer Contracts - Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	$ 9.5	$ 7.5	$ 5.6
Additions	20.1	13.3	12.7
Write-offs of Accounts Receivables, Net of Recoveries	(13.4)	(11.3)	(10.8)
Ending Balance	$ 16.2	$ 9.5	$ 7.5

Taxes - Unrecognized Tax Benefits Rollforward (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Balance, beginning of period	$ 53.2	$ 47.0	$ 67.2
Additions based on tax positions related to the current year	4.9	4.1	2.7
Additions for tax positions of prior years	11.1	11.7	3.3
Reduction for statute expiration	(2.4)	(2.7)	(17.9)
Reductions for tax positions of prior years	(15.8)	(6.2)	(3.9)
Settlements	0.0	(0.7)	(4.4)
Balance, end of period	$ 51.0	$ 53.2	$ 47.0

Customer Contracts - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Capitalized Contract Cost [Line Items]
Revenue recognized included in deferred revenue	$ 59.5	$ 47.6	$ 35.1
Cost To Obtain A Contract
Capitalized Contract Cost [Line Items]
Capitalized contract cost, net	59.3	55.1
Cost To Fulfill A Contract
Capitalized Contract Cost [Line Items]
Capitalized contract cost, net	$ 25.0	$ 21.7

Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies - Estimated Useful Lives (Details)	12 Months Ended
	Dec. 31, 2020
Computers and equipment \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Computers and equipment \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Software
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Estimated useful life	7 years
Buildings and leasehold improvements \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	2 years
Buildings and leasehold improvements \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	39 years

Property, Equipment, and Software, net - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Accelerated depreciation			$ 20.9
Property, Plant, and Equipment and Finance Lease Right of Use Asset
Property, Plant and Equipment [Line Items]
Depreciation	$ 289.8	$ 328.5	$ 445.5

Leases - Finance Leases (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Other current liabilities	$ 40.7	$ 9.2
Non-current finance lease liabilities	358.1	88.4
Total lease liability	$ 398.8	$ 97.6
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesCurrent

Derivatives - Derivatives Presented on a Net Asset and Net Liability basis (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Assets
Gross Amounts on Balance Sheet	$ 0.0	$ 1.4
Effect of Counter-Party Netting	0.0	(1.4)
Net Amounts	0.0	0.0
Liabilities
Gross Amounts on Balance Sheet	88.7	39.5
Effect of Counter-Party Netting	0.0	(1.4)
Net Amounts	88.7	38.1
Interest rate swaps
Liabilities
Gross Amounts on Balance Sheet	87.0	36.6
Effect of Counter-Party Netting	0.0	0.0
Net Amounts	87.0	36.6
Foreign currency contracts
Assets
Gross Amounts on Balance Sheet	0.0	1.4
Effect of Counter-Party Netting	0.0	(1.4)
Net Amounts	0.0	0.0
Liabilities
Gross Amounts on Balance Sheet	1.7	2.9
Effect of Counter-Party Netting	0.0	(1.4)
Net Amounts	$ 1.7	$ 1.5

Share-Based Compensation, Settlement of Share-Based Awards, and Employee Benefit Plans

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Share-Based Compensation, Settlement of Share-Based Awards, and Employee Benefit Plans

Stock Plans

In April 2017, the Executive Committee of the board of directors authorized the company to adopt the Rackspace Technology, Inc. Equity Incentive Plan (the "2017 Incentive Plan"). On July 24, 2020, the board of directors approved, effective on August 7, 2020, the Rackspace Technology, Inc. 2020 Equity Incentive Plan (the "2020 Incentive Plan" and, together with the 2017 Incentive Plan, the "Incentive Plans") and amendments to the 2017 Incentive Plan which, among other things, resulted in the termination of the 2017 Incentive Plan, except as it relates to outstanding awards, and any remaining shares reserved for future grants under the 2017 Incentive Plan were released.

The 2020 Incentive Plan provides for the grant of stock options, including incentive stock options ("ISOs"), and nonqualified stock options ("NSOs"), stock appreciation rights ("SARs"), restricted stock, restricted stock units ("RSUs"), other stock-based incentive awards, dividend equivalents and cash-based awards (collectively, "awards"). ISOs may be granted only to our employees or an employee of a parent or subsidiary. All other awards may be granted to employees and consultants of the company and its parents and subsidiaries, as well as all non-employee members of our board of directors.

For the years ended December 31, 2018, 2019 and 2020, the company granted stock options, RSUs and restricted stock (collectively "restricted stock") under the Incentive Plans. The company issues new shares of its common stock to satisfy vesting of restricted stock and exercise of stock options under the Incentive Plans. All awards deduct one share from the Incentive Plans shares available for issuance for each share granted. The 2017 Incentive Plan began with 12.2 million shares authorized for grant and contained an evergreen feature whereby shares available increased each grant date based on the quantity of certain types of awards granted. Upon the approval of the 2020 Incentive Plan, the 2017 Incentive Plan was terminated, except as it relates to outstanding awards. The maximum number of shares of our common stock available for issuance under the 2020 Incentive Plan is 25.0 million shares. To the extent awards granted under the 2020 Incentive Plan terminate, expire or lapse, shares subject to such awards generally will again be available for future grant. As of December 31, 2020, the total number of shares outstanding and the total number of shares available for future grants under the Incentive Plans was 21.3 million and 22.7 million, respectively.

The composition of the equity awards outstanding as of December 31, 2019 and 2020 was as follows:


	December 31, 2019	December 31, 2020
(In millions)
Restricted stock	0.6	2.7
Stock options	19.8	18.6
Total outstanding awards	20.4	21.3

Stock Options

Stock options have been granted for a term of 10 years and generally vest ratably over a three-year period, subject to continued service. Certain executives have received stock options that vest in part subject to continued service ratably over a five-year period and in part based upon the attainment of performance and market conditions.

The following table summarizes the stock option activity for the year ended December 31, 2020:


	Number of Shares (in millions)	Weighted Average Exercise Price		Weighted Average-Remaining Contractual Life	Aggregate Intrinsic Value (in millions)
Outstanding at December 31, 2019	19.8	$	12.24	8.64	$	21.7
Granted	8.2	$	13.11
Exercised	(2.6)	$	10.92
Forfeited	(6.2)	$	12.60
Expired	(0.6)	$	11.96
Outstanding at December 31, 2020	18.6	$	12.69	7.94	$	118.4
Vested and exercisable at December 31, 2020	4.0	$	11.73	6.76	$	29.2
Vested and exercisable at December 31, 2020 and expected to vest thereafter (1)	18.6	$	12.69	7.94	$	118.4

(1) Forfeitures are recognized as they occur, rather than estimated.

The total pre-tax intrinsic value of the stock options exercised during the years ended December 31, 2018, 2019 and 2020 was $0.3 million, $1.8 million, and $22.3 million, respectively.

We have granted stock options that include vesting terms dependent upon a service, performance and/or market condition. The fair value of stock options with vesting conditions dependent upon market performance is determined using a Monte Carlo simulation. The fair value of stock options with either solely a service requirement or with the combination of service and performance requirements is determined using the Black-Scholes valuation model, which requires us to make assumptions and judgments about variables related to our common stock and the related awards. The fair value of stock options is based on the fair value of the underlying common stock on the date of grant. Prior to the IPO, the fair value of the underlying common stock included estimates and judgments related to the discount rates and future discounted cash flows of the company based on management’s internal forecasts. Share-based compensation expense is recognized on a straight-line basis over the service period or over our best estimate of the period over which the performance condition will be met, as applicable. The following table presents the assumptions used to estimate the fair values of the stock options granted in the periods presented:


	Year Ended December 31,
	2018		2019		2020
Expected stock volatility (1)	63% - 72%		58	%	55% - 61%
Expected dividend yield (2)	—	%	—	%	—	%
Risk-free interest rate (3)	2.63% - 2.92%		1.54% - 2.47%		0.38% - 1.73%
Expected life (4)	5.5 - 6.5 years		5.7 - 6.5 years		5.5 - 6.5 years

(1) Management estimates volatility based on the historical trading volatility of a public company peer group and the implied volatility of our assets and current leverage.

(2) We have not issued dividends to date and do not anticipate issuing dividends.

(3) Based on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent expected term.

(4) Represents the period that our share-based awards are expected to be outstanding. Management uses the simplified method for our estimation of the expected life as we do not have adequate historical data.

The weighted-average grant-date fair value of options granted during the years ended December 31, 2018, 2019 and 2020 was $9.69, $6.81 and $8.09, respectively.

As of December 31, 2020, there was $63.5 million of total unrecognized compensation cost related to stock options, which will be recognized over a weighted average period of 1.6 years.

Restricted Stock

Restricted stock has been granted to certain executives that vest in part subject to continued service ratably over a three or five-year period and in part based upon the attainment of performance and market conditions. The fair value of the service-vesting awards is measured based on the fair value of the underlying common stock on the date of the grant. The fair value of restricted stock with vesting conditions dependent upon market performance is determined using a Monte Carlo simulation. Share-based compensation expense is recognized on a straight-line basis over the service period or over our best estimate of the period over which the performance condition will be met, as applicable.

On the date of our IPO, we granted RSUs to all eligible employees. The fair value of these awards was based on the fair value of the underlying common stock on the date of the grant, and share-based compensation expense is recognized on a straight-line basis over the service period of six months.

Additionally, we have granted certain awards with vesting dependent upon the attainment of predetermined financial performance results over the next two years. The fair value of these performance-vesting awards is measured based on the fair value of the underlying common stock on the date of grant, and share-based compensation expense is recognized when it is probable that the performance condition will be achieved.

Certain non-executive board members elected to receive a portion of their annual compensation in the form of restricted stock. The fair value of these service-vesting awards is measured based on the fair value of the underlying common stock on the date of grant, and share-based compensation expense is recognized on a straight-line basis over the one-year service period.

The following table summarizes our restricted stock activity for the year ended December 31, 2020:


	Number of Units or Shares (in millions)	Weighted Average Grant-Date Fair Value
Outstanding at December 31,2019	0.6	$	13.26
Granted	2.5	$	17.74
Released	(0.2)	$	15.37
Cancelled	(0.2)	$	19.18
Outstanding at December 31, 2020	2.7	$	16.86
Expected to vest after at December 31, 2020 (1)	2.7	$	16.86

(1) Forfeitures are recognized as they occur, rather than estimated.

The weighted-average grant-date fair value of restricted stock granted during the years ended December 31, 2018 and 2019 was $14.40 and $12.88, respectively.

The total pre-tax intrinsic value of the restricted stock released during the years ended December 31, 2019 and 2020 was $3.3 million and $3.6 million, respectively. There was no restricted stock released during the year ended December 31, 2018.

As of December 31, 2020, there was $30.2 million of total unrecognized compensation cost related to restricted stock, which will be recognized over a weighted average period of 1.6 years.

Employee Stock Purchase Plan

The ESPP was approved by the company's board of directors on July 24, 2020 and became effective on August 7, 2020. Under the ESPP, eligible employees may purchase a limited number of shares of our common stock at the lesser of 85% of the market value on the enrollment date or 85% of the market value on the purchase date. The fair value on each enrollment date is determined using the Black-Scholes option-pricing model. Share-based compensation expense is recognized on a straight-line basis over the offering period. We issued 0.4 million shares through the ESPP during the year ended December 31, 2020. The share-based compensation expense recognized for the ESPP was $1.5 million during the year ended December 31, 2020. As of December 31, 2020, there was no unrecognized compensation cost related to the ESPP. The shares available for issuance under the ESPP is 11.1 million shares as of December 31, 2020.

Share-Based Compensation Expense

In connection with the departure of certain executives during the year ended December 31, 2019, we accelerated vesting of options and restricted stock for awards with service-only vesting conditions and extended the post termination option exercise period. In connection with the departure of certain executives during the year ended December 31, 2020, we accelerated vesting of options and restricted stock for awards with service-only vesting conditions, extended the period certain options with performance and/or market conditions would remain outstanding and eligible to vest and extended the post termination option exercise period. These modifications resulted in incremental expense of $3.5 million and $3.5 million during the years ended December 31, 2019 and 2020, respectively. In addition, during the years ended December 31, 2018 and 2019, modifications were made to the performance and/or market condition of awards for certain employees. As these awards expired before a change in control event required for vesting, these modifications resulted in no incremental expense.

Upon the completion of the IPO, it was determined that certain awards with performance and market conditions, tied to a liquidity event and the achievement of targets based on a MOIC for Apollo, were probable of vesting. As a result of this change in estimate, the company recognized $20.2 million of share-based compensation expense, related to service received since the grant date of the respective awards, during the year ended December 31, 2020.

Share-based compensation expense recognized for the years ended December 31, 2018, 2019 and 2020 was as follows:


	Year Ended December 31,
(In millions)	2018		2019		2020
Cost of revenue	$	4.1	$	5.7	$	14.5
Selling, general and administrative expenses	15.9		24.5		60.0
Pre-tax share-based compensation expense	20.0		30.2		74.5
Less: Income tax benefit	(4.2)		(6.3)		(15.6)
Total share-based compensation expense, net of tax	$	15.8	$	23.9	$	58.9

Settlement of Share-Based Awards

As a result of the Rackspace Acquisition, Rackspace Technology Global had obligations related to the settlement of restricted stock units that were outstanding at the Closing Date. These obligations required installment payments that began in November 2016 and ended in the first quarter of 2019. We made cash payments of $46.3 million and $19.2 million during the years ended December 31, 2018 and 2019, respectively.

Compensation expense recognized related to these payments for the years ended December 31, 2018 and 2019 was as follows:


	Year Ended December 31,
(In millions)	2018		2019
Cost of revenue	$	6.5	$	—
Selling, general and administrative expenses	19.8		2.7
Total cash settled equity compensation expense	$	26.3	$	2.7

In addition, in connection with an employee's departure, we settled options and restricted stock for a one-time cash payment of $1.5 million during the year ended December 31, 2019.

Employee Benefit Plans

We sponsor defined contribution plans whereby employees may elect to contribute a portion of their annual compensation to the plans, after complying with certain limitations. The plans also include a discretionary employer contribution. Contribution expense recognized for these plans was $14.8 million, $14.3 million and $16.0 million for the years ended December 31, 2018, 2019 and 2020, respectively.

Share-Based Compensation, Settlement of Share-Based Awards, and Employee Benefit Plans - Narrative (Details) - USD ($)		12 Months Ended
	Aug. 07, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Jul. 24, 2020	Apr. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares outstanding (in shares)		21,300,000
Shares available for future grants (in shares)		22,700,000
Stock options granted, weighted-average grant date fair value (in usd per share)		$ 8.09	$ 6.81	$ 9.69
Unrecognized compensation cost, stock options		$ 63,500,000
Share-based compensation expense		74,500,000	$ 30,200,000	$ 20,000,000.0
Plan modification, incremental cost		3,500,000	3,500,000
Share-based compensation expense, accelerated cost	$ 20,200,000
Contribution expense		$ 16,000,000.0	$ 14,300,000	$ 14,800,000
2017 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares available for issuance (in shares)						12,200,000
2020 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares available for issuance (in shares)					25,000,000.0
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, period for recognition		1 year 7 months 6 days
Weighted average grant date fair value, RSUs granted during period (in usd per share)		$ 17.74	$ 12.88	$ 14.40
Intrinsic value of restricted stock released		$ 3,600,000	$ 3,300,000	$ 0
Unrecognized compensation cost		$ 30,200,000
Share-based compensation expense			2,700,000	26,300,000
Cash payments related to settlement of restricted stock units			19,200,000	46,300,000
Restricted Stock Units (RSUs) \| IPO
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Service period		6 months
Restricted Stock Units (RSUs) \| Executive Officer \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		3 years
Restricted Stock Units (RSUs) \| Executive Officer \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		5 years
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period		10 years
Vesting period		3 years
Intrinsic value of stock options exercised		$ 22,300,000	1,800,000	300,000
Unrecognized compensation cost, period for recognition		1 year 7 months 6 days
Plan modification, incremental cost			0	$ 0
Options \| Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		5 years
Options And Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash payment, settlement of share-based awards			$ 1,500,000
Employee Stock \| ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares available for issuance (in shares)		11,100,000
Unrecognized compensation cost		$ 0
Purchase price of common stock, percentage		0.85%
Shares issued under ESPP (in shares)		400,000
Share-based compensation expense		$ 1,500,000
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		2 years
RSAs \| Board member \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Service period		1 year

Segment Reporting - Narrative (Details)	12 Months Ended
Segment Reporting - Narrative (Details)	Dec. 31, 2020 segment
Segment Reporting [Abstract]
Number of operating segments	3
Number of reportable segments	3

Label	Element	Value
Deferred Offering Costs	us-gaap_DeferredOfferingCosts	$ 0
Deferred Offering Costs	us-gaap_DeferredOfferingCosts	0
Deferred Offering Costs	us-gaap_DeferredOfferingCosts	600,000
Restricted Cash and Cash Equivalents	us-gaap_RestrictedCashAndCashEquivalents	3,900,000
Restricted Cash and Cash Equivalents	us-gaap_RestrictedCashAndCashEquivalents	3,300,000
Restricted Cash and Cash Equivalents	us-gaap_RestrictedCashAndCashEquivalents	$ 3,400,000

Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details)	12 Months Ended
	Dec. 31, 2020 USD ($) reportingUnit	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Accounting Policies [Abstract]
Number of reporting units \| reportingUnit	3
Impairment of goodwill \| $	$ 0	$ 0	$ 295,000,000.0

Share-Based Compensation, Settlement of Share-Based Awards, and Employee Benefit Plans - Restricted Stock Activity (Details) - Restricted Stock Units (RSUs) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Number of Units or Shares (in millions)
RSUs outstanding, beginning balance (in shares)	600,000
RSUs granted (in shares)	2,500,000
RSUs released (in shares)	(200,000)
RSUs cancelled (in shares)	(200,000)
RSUs outstanding, ending balance (in shares)	2,700,000	600,000
RSUs expected to vest (in shares)	2,700,000
Weighted Average Grant-Date Fair Value
Weighted average grant date fair value, RSUs outstanding, beginning balance (in usd per share)	$ 13.26
Weighted average grant date fair value, RSUs granted during period (in usd per share)	17.74	$ 12.88	$ 14.40
Weighted average grant date fair value, RSUs released during period (in usd per share)	15.37
Weighted average grant date fair value, RSUs cancelled during period (in usd per share)	19.18
Weighted average grant date fair value, RSUs outstanding, ending balance (in usd per share)	16.86	$ 13.26
Weighted average grant date fair value, RSUs expected to vest (in usd per share)	$ 16.86

Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Share-based compensation	$ 15.6	$ 10.9
Accruals not currently deductible	21.3	20.7
Interest rate swaps	22.2	9.3
Finance lease liabilities	67.7	10.1
Net operating loss carryforwards	113.3	51.7
Foreign tax credit	33.5	34.0
Research and development credits	30.6	23.2
Depreciation and amortization	7.8	9.5
Disallowed interest carryforward	5.4	40.2
Operating lease liabilities	37.9	74.8
Other	17.7	12.1
Total gross deferred tax assets	373.0	296.5
Valuation allowance	(54.4)	(53.3)
Total net deferred tax assets	318.6	243.2
Depreciation and amortization	484.5	452.0
Prepaids	1.3	7.3
Finance lease liabilities	4.4	7.0
Capitalized costs	13.9	12.7
Unremitted foreign earnings	0.0	0.1
Debt related	7.4	9.9
Operating right-of-use assets	36.2	70.8
Other	3.2	1.1
Total gross deferred tax liabilities	550.9	560.9
Net deferred tax liabilities	$ 232.3	$ 317.7

Debt

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Debt

Debt consisted of the following:


	December 31, 2019
(In millions)	Term Loan Facility		8.625% Senior Notes due 2024		Total
Principal balance	$	2,824.6	$	1,120.2	$	3,944.8
Unamortized debt issuance costs	(48.6)		(18.0)		(66.6)
Unamortized debt discount	(4.9)		—		(4.9)
Total debt	2,771.1		1,102.2		3,873.3
Less: current portion of debt	(29.0)		—		(29.0)
Debt, excluding current portion	$	2,742.1	$	1,102.2	$	3,844.3


	December 31, 2020
(In millions)	Term Loan Facility		5.375% Senior Notes due 2028		Accounts Receivable Financing Agreement		Total
Principal balance	$	2,795.6	$	550.0	$	65.0	$	3,410.6
Unamortized debt issuance costs	(36.6)		(7.6)		—		(44.2)
Unamortized debt discount	(3.7)		—		—		(3.7)
Total debt	2,755.3		542.4		65.0		3,362.7
Less: current portion of debt	(29.0)		—		(14.4)		(43.4)
Debt, excluding current portion	$	2,726.3	$	542.4	$	50.6	$	3,319.3

Senior Facilities

On November 3, 2016, in conjunction with the Rackspace Acquisition, Rackspace Technology Global entered into a secured First Lien Credit Agreement with Citibank, N.A. ("Citi") as the administrative agent. The First Lien Credit Agreement includes a first lien term loan facility (the "Term Loan Facility") originally in the amount of $2,000.0 million, which was fully drawn at closing of the Rackspace Acquisition, and an undrawn revolving credit facility ("Revolving Credit Facility") originally in the amount of $225.0 million (together, the "Senior Facilities"). Rackspace Technology Global may request additional Revolving Credit Facility commitments, and had the right to request additional Term Loan Facility commitments, in each case, up to a specified dollar amount plus additional amounts, subject to compliance with applicable leverage ratios and certain terms and conditions. The proceeds of the Term Loan Facility were used to fund the transactions associated with the Rackspace Acquisition. The Term Loan Facility was set to mature on November 3, 2023 and the Revolving Credit Facility originally matured on November 3, 2021.

Borrowings under the Term Loan Facility bear interest at an annual rate equal to an applicable margin plus, at our option, either (a) a LIBOR rate determined by reference to the costs of funds for Eurodollar deposits for the interest period relevant to such borrowing, adjusted for certain additional costs, subject to a 1.00% floor in the case of term loans, 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 Citi and (iii) the one-month adjusted LIBOR plus 1.00%. Interest is due at the end of each interest period elected, not exceeding 90 days, for LIBOR loans and at the end of every calendar quarter for base rate loans. Rackspace Technology Global was required to make quarterly amortization payments on the Term Loan Facility in an annual amount equal to 1.00% of the original principal amount, including incremental borrowings since the Rackspace Acquisition, or $7.2 million per quarter, with the balance due at maturity.

On July 20, 2020, we entered into an amendment to the First Lien Credit Agreement that modified the terms of the Revolving Credit Facility effective upon the closing of the IPO on August 7, 2020. The amendment (i) increased the amount of the commitments available under the Revolving Credit Facility from $225.0 million to $375.0 million, (ii) reduced the applicable margin with respect to the Revolving Credit Facility to 3.00% for LIBOR loans and 2.00% for base rate loans, but includes a 1.00% LIBOR "floor" applicable to LIBOR loans, and (iii) extended the maturity date with respect to the Revolving Credit Facility from November 3, 2021 to August 7, 2025.

The amendment to the Revolving Credit Facility also modified the financial maintenance covenant applicable to the Revolving Credit Facility that limits our net first lien leverage ratio to be a maximum of 5.00 to 1.00 (as compared to 3.50 to 1.00 prior to giving effect to the amendment). This financial maintenance covenant is only applicable and tested if the aggregate amount of outstanding borrowings under the Revolving Credit Facility and letters of credit issued thereunder (excluding $25.0 million of undrawn letters of credit and cash collateralized letters of credit) as of the last day of a fiscal quarter is equal to or greater than 35% of the Revolving Credit Facility commitments as of the last day of such fiscal quarter. Other than described in this and the previous paragraph, the terms and conditions of the Revolving Credit Facility remained the same, and the amendment did not amend or otherwise modify the terms of the Term Loan Facility.

We accounted for the amendment to the Revolving Credit Facility as a debt modification and recorded $0.6 million in debt issuance costs to "Other non-current assets" in the Consolidated Balance Sheets. These are amortized, along with the unamortized debt issuance costs associated with the prior arrangement, on a straight-line basis to "Interest expense" in the Consolidated Statements of Comprehensive Loss over the five-year term of the modified arrangement.

As of December 31, 2020, the Revolving Credit Facility had total commitments of $375.0 million. Over the course of the year ended December 31, 2020, Rackspace Technology Global borrowed and repaid an aggregate $245.0 million under the Revolving Credit Facility. As of December 31, 2020, we had no outstanding borrowings under the Revolving Credit Facility.

As of December 31, 2020, the interest rate on the Term Loan Facility was 4.00%. See Note 16, "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 requires Rackspace Technology Global to make certain mandatory prepayments, including using (i) a portion of annual excess cash flow, as defined in the agreement, to prepay the New Term Loan Facility, (ii) net cash proceeds of certain non-ordinary assets sales or dispositions of property to prepay the New Term Loan Facility, and (iii) net cash proceeds of any issuance or incurrence of debt not permitted under the Senior Facilities to prepay the New Term Loan Facility. Rackspace Technology Global can make voluntary prepayments at any time without penalty, subject to customary breakage costs.

Rackspace Technology Global is the borrower under the Senior Facilities, and all obligations under the Senior Facilities are (i) guaranteed by Inception Parent, Inc., Rackspace Technology Global’s immediate parent company, on a limited recourse basis and secured by the equity interests of Rackspace Technology Global held by Inception Parent, Inc. and (ii) guaranteed by Rackspace Technology Global’s wholly-owned domestic restricted subsidiaries and secured by substantially all material owned assets of Rackspace Technology Global and the subsidiary guarantors, including the equity interests held by each, in each case subject to certain exceptions. The only financial covenant is with respect to the Revolving Credit Facility which limits the net first lien leverage ratio to a maximum of 5.00 to 1.00, as discussed above; however, this covenant is only applicable and tested if the aggregate amount of outstanding borrowings under the Revolving Credit Facility and letters of credit issued thereunder (excluding $25.0 million of undrawn letters of credit and cash collateralized letters of credit) is equal to or greater than 35% of the Revolving Credit Facility commitments at the end of a fiscal quarter. Other covenants include limitations on restricted payments, indebtedness, investments, liens, asset sales and transactions with affiliates.

The fair value of the Term Loan Facility as of December 31, 2020 was $2,785.1 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 Term Loan Facility is classified as Level 2 within the fair value hierarchy.

As of December 31, 2020, Rackspace Technology Global was in compliance with all covenants under the Senior Facilities.

8.625% Senior Notes

On November 3, 2016, in conjunction with the Rackspace Acquisition, Rackspace Technology Global completed the issuance of $1,200.0 million aggregate principal amount of 8.625% Senior Notes due 2024 (the "8.625% Senior Notes") to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act. The 8.625% Senior Notes were set to mature on November 15, 2024 and bore interest at a rate of 8.625% per year, payable semi-annually on May 15 and November 15. The proceeds of the 8.625% Senior Notes were used to fund the transactions associated with the Rackspace Acquisition, including consummation of the Rackspace Acquisition and payment of related fees and expenses. We recorded $31.7 million of debt issuance costs related to the Rackspace Technology Global’s issuance of the 8.625% Senior Notes.

During the year ended December 31, 2019, Rackspace Technology Global repurchased and surrendered for cancellation $77.3 million of principal amount of 8.625% Senior Notes for $66.9 million including accrued interest of $0.8 million. In connection with these repurchases, we recorded a gain on debt extinguishment of $9.8 million in our Consolidated Statements of Comprehensive Loss for the year ended December 31, 2019.

Between August and December 2020, Rackspace Technology Global repurchased and cancelled the remaining aggregate principal amount of the $1,120.2 million outstanding 8.625% Senior Notes and paid related premiums, fees and accrued and unpaid interest for aggregate cash of $1,191.9 million. In connection with these repurchases, we recorded a loss on debt extinguishment of $71.5 million in our Consolidated Statements of Comprehensive Loss for the year ended December 31, 2020, comprised of a $56.2 million aggregate premium on repurchase, $14.9 million write-off of unamortized debt issuance costs, and transaction fees of $0.4 million. Following the cancellations, we had no remaining outstanding principal balance under the 8.625% Senior Notes at December 31, 2020. We funded the repurchases with proceeds from the IPO, the issuance of $550.0 million aggregate principal amount of senior notes due in 2028 in a private offering, (see discussion at "5.375% Senior Notes" below), and cash on hand.

5.375% Senior Notes

Rackspace Technology Global issued $550.0 million aggregate principal amount of 5.375% Senior Notes due 2028 (the "5.375% Senior Notes") on December 1, 2020. The 5.375% Senior Notes will mature on December 1, 2028 and bear interest at a fixed rate of 5.375% per year, payable semi-annually on each June 1 and December 1, commencing on June 1, 2021 through maturity. The 5.375% Senior Notes are not subject to registration rights. We used the net proceeds from the issuance, together with cash on hand, to fund the repurchase of the outstanding 8.625% Senior Notes due 2024 and to pay related fees and expenses.

Rackspace Technology Global is the issuer of the 5.375% Senior Notes, and obligations under the 5.375% Senior Notes are guaranteed on a senior unsecured basis by all of Rackspace Technology Global’s wholly-owned domestic restricted subsidiaries (as subsidiary guarantors) that guarantee the Senior Facilities. The 5.375% Senior Notes are effectively junior to the indebtedness under the Senior Facilities, to the extent of the collateral securing the Senior Facilities. The indenture governing the 5.375% Senior Notes (the "5.375% Indenture") describes certain terms and conditions under which other current and future domestic subsidiaries are required to become guarantors of the 5.375% Senior Notes.

Rackspace Technology Global may redeem the 5.375% Senior Notes at its option, in whole at any time or in part from time to time, at the following redemption prices: prior to December 1, 2023, at a redemption price equal to 100.000% of the principal amount, plus the applicable premium described in the 5.375% Indenture and accrued and unpaid interest, if any, to but excluding the redemption date; from December 1, 2023 to December 1, 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 December 1, 2025, at a redemption price equal to 101.344% of the principal amount, plus accrued and unpaid interest, if any, to but excluding the redemption date; and from December 1, 2025 and thereafter, at a redemption price equal to 100.000% of the principal amount, plus accrued and unpaid interest, if any, to but excluding the redemption date. Rackspace Technology Global may also redeem up to 40% of the aggregate principal amount of the 5.375% Senior Notes with funds in an aggregate amount not to exceed the net cash proceeds from certain equity offerings at a redemption price equal to 105.375% of the principal amount of the 5.375% Senior Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.

The 5.375% Indenture contains covenants that, among other things, limit our subsidiaries' 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. As of December 31, 2020, Rackspace Technology Global was in compliance with all covenants under the 5.375% Indenture.

The fair value of the 5.375% Senior Notes as of December 31, 2020 was $574.8 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.

Accounts Receivable Financing Agreement

On March 19, 2020, a wholly owned subsidiary of the company entered into an accounts receivable financing agreement (the "Receivables Financing Facility"). Pursuant to the agreements evidencing the Receivables Financing Facility, Rackspace Receivables, LLC, a bankruptcy-remote special purpose vehicle ("SPV") wholly owned by Rackspace Technology Global, has granted a security interest in all of its current and future receivables and related assets in exchange for a credit facility permitting borrowings of up to a maximum aggregate amount of $100.0 million from time to time. Such borrowings are used by the SPV to finance purchases of accounts receivable. We recorded $1.0 million of fees and expenses related to the Receivables Financing Facility as debt issuance costs, which are included in "Other non-current assets" in the Consolidated Balance Sheets.

The amount of advances available are determined based on advance rates relating to the eligibility of the receivables held by the SPV at that time. Advances bear interest based on LIBOR plus a margin. The last date on which advances may be made is March 21, 2022, unless the maturity of the Receivables Financing Facility is otherwise accelerated. In addition to other customary fees associated with financings of this type, the SPV is required to pay a monthly commitment fee based on the unused amount of the facility.

As of December 31, 2020, $65.0 million was borrowed and outstanding under the Receivables Financing Facility. Subsequent to December 31, 2020, the SPV repaid a portion of the Receivables Financing Facility in the amount of $15.0 million to cover a borrowing base deficit. The interest rate on the Receivables Financing Facility was 2.37% as of December 31, 2020.

The agreements evidencing the Receivables Financing Facility contain customary representations and warranties, affirmative and negative covenants, and events of default. As of December 31, 2020, the company was in compliance with all covenants under the Receivables Financing Facility.

Debt Maturities

The maturities of debt obligations for the next five years at December 31, 2020 are as follows:


(In millions)	Amount
Year ending:
2021	$	43.4
2022	79.6
2023	2,737.6
2024	—
2025	—
Thereafter	550.0
Total	$	3,410.6

Share-Based Compensation, Settlement of Share-Based Awards, and Employee Benefit Plans - Share-based Compensation Expense Recognized (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 74.5	$ 30.2	$ 20.0
Less: Income tax benefit	(15.6)	(6.3)	(4.2)
Total share-based compensation expense, net of tax	58.9	23.9	15.8
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	14.5	5.7	4.1
Selling, general and administrative expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 60.0	$ 24.5	$ 15.9

Commitment and Contingencies - Narrative (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Indemnification Agreement
Other Commitments [Line Items]
Guarantor Obligations, Current Carrying Value	$ 0	$ 0

Acquisitions

12 Months Ended

Dec. 31, 2020

Business Combinations [Abstract]

Acquisitions

RelationEdge

On May 14, 2018, we acquired 100% of RelationEdge, LLC ("RelationEdge"), a full-service Salesforce Platinum Consulting Partner and digital agency that helps clients engage with their customers from lead to loyalty by improving business process, leveraging technology and integrating creative digital marketing. The acquisition was completed for total consideration of $65.7 million, net of cash acquired of $0.4 million, for a net cash purchase price of $65.3 million. We funded the acquisition and the related fees and expenses with cash on hand. With this acquisition, we expanded our ability to be a preferred partner for managing a customer’s complete application portfolio through continuous transition to modern technologies, including software-as-a- service (“SaaS”) applications.

The final allocation of the purchase price as of the May 14, 2018 closing date is as follows:


(In millions)	May 14, 2018
RelationEdge Acquisition Consideration	$	65.7
Allocated to:
Cash and cash equivalents	$	0.4
Intangible assets	22.1
Liabilities assumed, net of other assets acquired	(1.1)
Net assets acquired	$	21.4
Goodwill	$	44.3

Goodwill primarily consisted of assembled workforce and is deductible for tax purposes. The fair value of identifiable intangible assets acquired includes $18.0 million for the relationship with Salesforce, and is recorded within “Other” in the intangible assets table disclosed in Note 5, “Goodwill and Intangible Assets.” The weighted average amortization period of identifiable intangible assets is approximately 4.6 years as of the date of the acquisition.

We recorded $1.6 million for the year ended December 31, 2018 of costs, including legal, professional, and other fees, related to the RelationEdge acquisition, within "Selling, general and administrative expenses" in the Consolidated Statements of Comprehensive Loss.

RelationEdge’s results of operations from the May 14, 2018 acquisition date through December 31, 2018 were not material to our consolidated financial statements. Additionally, pro forma impacts of the RelationEdge acquisition were not material to our consolidated revenue or results of operations for the year ended December 31, 2018.

Onica

On November 15, 2019, we acquired 100% of Onica Holdings LLC ("Onica"), an Amazon Web Services ("AWS") Partner Network Premier Consulting Partner and AWS Managed Service Provider providing cloud-native consulting and managed services, including strategic advisory, architecture and engineering and application development services. Total consideration to acquire Onica was $323.4 million, net of cash acquired of $7.5 million, for a net purchase price of $315.9 million. Total consideration includes the purchase price adjustment resulting from the difference between net working capital on the date of acquisition compared to the estimated net working capital used to determine the closing consideration (the "Purchase Price Adjustment"). The acquisition was funded through a combination of cash on hand and revolving credit facility borrowings, which were repaid by December 31, 2019. This acquisition allows us to expand our portfolio of managed public cloud and professional services solutions and further enhance our existing partnership with AWS.

The purchase price allocation was finalized in November 2020. Goodwill primarily consisted of assembled workforce. None of the goodwill recorded as part of the Onica acquisition is deductible for tax purposes except for approximately $18 million assumed as a result of historical acquisitions made by Onica.

The final allocation of the purchase price as of the November 15, 2019 closing date is as follows:


(In millions)	November 15, 2019
Onica Acquisition Consideration	$	323.4
Allocated to:
Cash and cash equivalents	$	7.5
Intangible assets	61.8
Liabilities assumed, net of other assets acquired	(10.7)
Net assets acquired	$	58.6
Goodwill	$	264.8

Included in the fair value of identifiable intangible assets acquired was $41.3 million of customer relationships and $17.2 million for the relationship with AWS, with an amortization period of seven and four years, respectively. The AWS relationship is recorded within “Other” in the intangible assets table disclosed in Note 5, “Goodwill and Intangible Assets.”

During the year ended December 31, 2019, we recorded $7.7 million of costs, including legal, professional, and other fees, related to the Onica acquisition, within "Selling, general and administrative expenses" in the Consolidated Statements of Comprehensive Loss.

Onica’s results of operations from the November 15, 2019 acquisition date through December 31, 2019 were not material to our consolidated financial statements.

Pro Forma Results

The following unaudited pro forma summary presents consolidated financial information for the years ended December 31, 2018 and 2019 as if the Onica acquisition had been completed as of January 1, 2018. This pro forma presentation does not include any impact of transaction synergies. The pro forma results are not necessarily indicative of the results of operations that actually would have been achieved had the acquisition of Onica been consummated as of January 1, 2018:


	Year Ended December 31,
(In millions)	2018		2019
Revenue	$	2,520.7	$	2,551.1
Net loss	$	(493.4)	$	(106.3)

Measurement Period Adjustments

During the year ended December 31, 2020, we recorded measurement period adjustments to the preliminary amounts recorded as of November 15, 2019. We recorded a measurement period adjustment of $0.2 million to Onica Acquisition Consideration associated with the Purchase Price Adjustment and a net adjustment of $0.3 million to deferred taxes, for a total net decrease to goodwill of $0.5 million. The Purchase Price Adjustment is included in "Other investing activities" in the Consolidated Statements of Cash Flows. The the impact of the adjustments recorded is as follows:


(In millions)	As Previously Determined		Measurement Period Adjustments		Revised
Onica Acquisition Consideration	$	323.6	$	(0.2)	$	323.4
Liabilities assumed, net of other assets acquired	11.0		(0.3)		10.7

Bright Skies

On November 5, 2020, we acquired 100% of Bright Skies GmbH ("Bright Skies"), a cloud-native consulting and managed services provider. The acquisition of Bright Skies was not material to the consolidated financial statements.

Taxes - Loss Before Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Contingency [Line Items]
Loss before income taxes	$ (312.0)	$ (122.3)	$ (500.5)
U.S.
Income Tax Contingency [Line Items]
Loss before income taxes	(311.1)	(143.2)	(515.5)
Foreign
Income Tax Contingency [Line Items]
Loss before income taxes	$ (0.9)	$ 20.9	$ 15.0

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 940
-SubTopic 20
-Section 25
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=68072869&loc=d3e41242-110953

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

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-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

Leases

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Leases

Assets recorded as property and equipment under finance leases, and the related accumulated depreciation balances as of December 31, 2019 and 2020 were as follows:


	December 31, 2019		December 31, 2020
(In millions)
Computers and equipment	$	21.6	$	108.7
Buildings (1)	105.3		305.7
Less: Accumulated depreciation	(21.3)		(46.4)
Net book value of property and equipment under finance leases	$	105.6	$	368.0

(1) During the year ended December 31, 2020, we recorded $220.3 million to buildings and leasehold improvements related to lease modifications in June 2020 which resulted in a change of classification from operating leases to finance leases.

The current and non-current balances of finance lease liabilities as of December 31, 2019 and 2020 were as follows:


	December 31, 2019		December 31, 2020
(In millions)
Finance lease liability balances included in:
Other current liabilities	$	9.2	$	40.7
Non-current finance lease liabilities	88.4		358.1
Total finance lease liabilities	$	97.6	$	398.8

The components of operating and finance lease expense for the years ended December 31, 2019 and 2020 were as follows:


	Year Ended December 31,
(In millions)	2019		2020
Operating lease expense:
Fixed lease expense	$	107.6	$	80.2
Variable lease expense	13.9		19.5
Short-term lease expense	4.3		10.3
Sublease income	(2.5)		(3.1)
Total operating lease expense	$	123.3	$	106.9
Finance lease expense:
Depreciation of finance lease assets	$	7.9	$	30.2
Interest expense on finance lease liabilities	8.2		19.4
Total finance lease expense	$	16.1	$	49.6

Supplemental operating cash flow information related to operating and finance leases for the years ended December 31, 2019 and 2020 were as follows:


	Year Ended December 31,
(In millions)	2019		2020
Cash payments for lease liabilities included within operating activities:
Operating leases	$	(101.6)	$	(85.3)
Finance leases	(9.0)		(20.2)

New lease assets obtained in exchange for lease liabilities:
Operating leases	$	33.7	$	42.7

As of December 31, 2019 and 2020, the weighted average remaining lease term and weighted average discount rate of our operating and finance leases, respectively, were as follows:


	December 31, 2019		December 31, 2020

Weighted average remaining lease term (in years)
Operating leases	8		4
Finance leases	14		14
Weighted average discount rate
Operating leases	11.5	%	9.0	%
Finance leases	9.4	%	7.2	%

Future lease payments under operating and finance leases as of December 31, 2020 are as follows:


(In millions)	Operating leases		Finance leases
Year ending:
2021	$	75.7	$	64.8
2022	50.2		68.0
2023	37.8		47.4
2024	30.6		29.3
2025	10.0		30.0
Thereafter	7.5		406.6
Total future lease payments	211.8		646.1
Less amount representing interest	(31.4)		(247.3)
Total lease liability	$	180.4	$	398.8

Leases

Assets recorded as property and equipment under finance leases, and the related accumulated depreciation balances as of December 31, 2019 and 2020 were as follows:


	December 31, 2019		December 31, 2020
(In millions)
Computers and equipment	$	21.6	$	108.7
Buildings (1)	105.3		305.7
Less: Accumulated depreciation	(21.3)		(46.4)
Net book value of property and equipment under finance leases	$	105.6	$	368.0

The current and non-current balances of finance lease liabilities as of December 31, 2019 and 2020 were as follows:


	December 31, 2019		December 31, 2020
(In millions)
Finance lease liability balances included in:
Other current liabilities	$	9.2	$	40.7
Non-current finance lease liabilities	88.4		358.1
Total finance lease liabilities	$	97.6	$	398.8

The components of operating and finance lease expense for the years ended December 31, 2019 and 2020 were as follows:


	Year Ended December 31,
(In millions)	2019		2020
Operating lease expense:
Fixed lease expense	$	107.6	$	80.2
Variable lease expense	13.9		19.5
Short-term lease expense	4.3		10.3
Sublease income	(2.5)		(3.1)
Total operating lease expense	$	123.3	$	106.9
Finance lease expense:
Depreciation of finance lease assets	$	7.9	$	30.2
Interest expense on finance lease liabilities	8.2		19.4
Total finance lease expense	$	16.1	$	49.6

Supplemental operating cash flow information related to operating and finance leases for the years ended December 31, 2019 and 2020 were as follows:


	Year Ended December 31,
(In millions)	2019		2020
Cash payments for lease liabilities included within operating activities:
Operating leases	$	(101.6)	$	(85.3)
Finance leases	(9.0)		(20.2)

New lease assets obtained in exchange for lease liabilities:
Operating leases	$	33.7	$	42.7

As of December 31, 2019 and 2020, the weighted average remaining lease term and weighted average discount rate of our operating and finance leases, respectively, were as follows:


	December 31, 2019		December 31, 2020

Weighted average remaining lease term (in years)
Operating leases	8		4
Finance leases	14		14
Weighted average discount rate
Operating leases	11.5	%	9.0	%
Finance leases	9.4	%	7.2	%

Future lease payments under operating and finance leases as of December 31, 2020 are as follows:


(In millions)	Operating leases		Finance leases
Year ending:
2021	$	75.7	$	64.8
2022	50.2		68.0
2023	37.8		47.4
2024	30.6		29.3
2025	10.0		30.0
Thereafter	7.5		406.6
Total future lease payments	211.8		646.1
Less amount representing interest	(31.4)		(247.3)
Total lease liability	$	180.4	$	398.8

Leases - Maturity (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Operating leases
2021	$ 75.7
2022	50.2
2023	37.8
2024	30.6
2025	10.0
Thereafter	7.5
Total future lease payments	211.8
Less amount representing interest	(31.4)
Total lease liability	180.4
Finance leases
2021	64.8
2022	68.0
2023	47.4
2024	29.3
2025	30.0
Thereafter	406.6
Total future lease payments	646.1
Less amount representing interest	(247.3)
Total lease liability	$ 398.8	$ 97.6

Segment Reporting - Geographic Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 2,707.1	$ 2,438.1	$ 2,452.8
Property, equipment and software, net	884.6	727.8
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	2,027.8	1,787.5	1,785.1
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	1,948.0	1,735.3	1,734.0
Property, equipment and software, net	684.3	517.0
EMEA
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	585.2	564.6	582.7
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	583.6	564.6	582.0
Property, equipment and software, net	170.9	180.0
APJ
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	94.1	86.0	85.0
Other Foreign Countries
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	175.5	138.2	$ 136.8
Property, equipment and software, net	$ 29.4	$ 30.8

- 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Customer Contracts - Schedule of Balances Related to Customer Contracts (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 483.0	$ 350.3
Current portion of contract assets	12.2	7.8
Non-current portion of contract assets	13.9	7.2
Deferred revenue	76.7	66.6
Non-current portion of deferred revenue	14.2	14.2
Allowance for doubtful accounts and accrued customer credits	$ 28.3	$ 17.0

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2020

Business Acquisition [Line Items]

Schedule of Pro Forma Results


	Year Ended December 31,
(In millions)	2018		2019
Revenue	$	2,520.7	$	2,551.1
Net loss	$	(493.4)	$	(106.3)

Schedule of Adjustments to Preliminary Purchase Price Allocation

The the impact of the adjustments recorded is as follows:


(In millions)	As Previously Determined		Measurement Period Adjustments		Revised
Onica Acquisition Consideration	$	323.6	$	(0.2)	$	323.4
Liabilities assumed, net of other assets acquired	11.0		(0.3)		10.7

RelationEdge, LLC

Business Acquisition [Line Items]

Schedule of Preliminary Purchase Price Allocation

The final allocation of the purchase price as of the May 14, 2018 closing date is as follows:


(In millions)	May 14, 2018
RelationEdge Acquisition Consideration	$	65.7
Allocated to:
Cash and cash equivalents	$	0.4
Intangible assets	22.1
Liabilities assumed, net of other assets acquired	(1.1)
Net assets acquired	$	21.4
Goodwill	$	44.3

Onica

Business Acquisition [Line Items]

Schedule of Preliminary Purchase Price Allocation

The final allocation of the purchase price as of the November 15, 2019 closing date is as follows:


(In millions)	November 15, 2019
Onica Acquisition Consideration	$	323.4
Allocated to:
Cash and cash equivalents	$	7.5
Intangible assets	61.8
Liabilities assumed, net of other assets acquired	(10.7)
Net assets acquired	$	58.6
Goodwill	$	264.8

Derivatives - Schedule of Fair Values of Derivatives on the Consolidated Balance Sheets (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Derivatives, Fair Value [Line Items]
Assets	$ 0.0	$ 1.4
Liabilities	88.7	39.5
Interest rate swaps
Derivatives, Fair Value [Line Items]
Liabilities	87.0	36.6
Foreign currency contracts
Derivatives, Fair Value [Line Items]
Assets	0.0	1.4
Liabilities	1.7	2.9
Derivatives not designated as hedging instruments
Derivatives, Fair Value [Line Items]
Assets	0.0	1.4
Liabilities	1.7	39.5
Derivatives not designated as hedging instruments \| Other current liabilities \| Interest rate swaps
Derivatives, Fair Value [Line Items]
Assets	0.0	0.0
Liabilities	0.0	3.5
Derivatives not designated as hedging instruments \| Other current liabilities \| Foreign currency contracts
Derivatives, Fair Value [Line Items]
Assets	0.0	0.0
Liabilities	1.7	2.9
Derivatives not designated as hedging instruments \| Other non-current liabilities \| Interest rate swaps
Derivatives, Fair Value [Line Items]
Assets	0.0	0.0
Liabilities	0.0	33.1
Derivatives not designated as hedging instruments \| Other current assets \| Foreign currency contracts
Derivatives, Fair Value [Line Items]
Assets	0.0	1.4
Liabilities	0.0	0.0
Derivatives designated as hedging instruments
Derivatives, Fair Value [Line Items]
Assets	0.0	0.0
Liabilities	87.0	0.0
Derivatives designated as hedging instruments \| Other current liabilities \| Interest rate swaps
Derivatives, Fair Value [Line Items]
Assets	0.0	0.0
Liabilities	22.6	0.0
Derivatives designated as hedging instruments \| Other non-current liabilities \| Interest rate swaps
Derivatives, Fair Value [Line Items]
Assets	0.0	0.0
Liabilities	$ 64.4	$ 0.0

Leases (Tables)

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Schedule of Finance Leases, Property and Equipment

Assets recorded as property and equipment under finance leases, and the related accumulated depreciation balances as of December 31, 2019 and 2020 were as follows:


	December 31, 2019		December 31, 2020
(In millions)
Computers and equipment	$	21.6	$	108.7
Buildings (1)	105.3		305.7
Less: Accumulated depreciation	(21.3)		(46.4)
Net book value of property and equipment under finance leases	$	105.6	$	368.0

Schedule of Finance Lease Liabilities

The current and non-current balances of finance lease liabilities as of December 31, 2019 and 2020 were as follows:


	December 31, 2019		December 31, 2020
(In millions)
Finance lease liability balances included in:
Other current liabilities	$	9.2	$	40.7
Non-current finance lease liabilities	88.4		358.1
Total finance lease liabilities	$	97.6	$	398.8

Schedule of Components of Operating and Finance Lease Expense

The components of operating and finance lease expense for the years ended December 31, 2019 and 2020 were as follows:


	Year Ended December 31,
(In millions)	2019		2020
Operating lease expense:
Fixed lease expense	$	107.6	$	80.2
Variable lease expense	13.9		19.5
Short-term lease expense	4.3		10.3
Sublease income	(2.5)		(3.1)
Total operating lease expense	$	123.3	$	106.9
Finance lease expense:
Depreciation of finance lease assets	$	7.9	$	30.2
Interest expense on finance lease liabilities	8.2		19.4
Total finance lease expense	$	16.1	$	49.6

Supplemental operating cash flow information related to operating and finance leases for the years ended December 31, 2019 and 2020 were as follows:


	Year Ended December 31,
(In millions)	2019		2020
Cash payments for lease liabilities included within operating activities:
Operating leases	$	(101.6)	$	(85.3)
Finance leases	(9.0)		(20.2)

New lease assets obtained in exchange for lease liabilities:
Operating leases	$	33.7	$	42.7

Schedule of Leases, Supplemental Information

As of December 31, 2019 and 2020, the weighted average remaining lease term and weighted average discount rate of our operating and finance leases, respectively, were as follows:


	December 31, 2019		December 31, 2020

Weighted average remaining lease term (in years)
Operating leases	8		4
Finance leases	14		14
Weighted average discount rate
Operating leases	11.5	%	9.0	%
Finance leases	9.4	%	7.2	%

Schedule of Future Lease Payments, Operating Leases

Future lease payments under operating and finance leases as of December 31, 2020 are as follows:


(In millions)	Operating leases		Finance leases
Year ending:
2021	$	75.7	$	64.8
2022	50.2		68.0
2023	37.8		47.4
2024	30.6		29.3
2025	10.0		30.0
Thereafter	7.5		406.6
Total future lease payments	211.8		646.1
Less amount representing interest	(31.4)		(247.3)
Total lease liability	$	180.4	$	398.8

Schedule of Future Lease Payments, Finance Leases

Future lease payments under operating and finance leases as of December 31, 2020 are as follows:


(In millions)	Operating leases		Finance leases
Year ending:
2021	$	75.7	$	64.8
2022	50.2		68.0
2023	37.8		47.4
2024	30.6		29.3
2025	10.0		30.0
Thereafter	7.5		406.6
Total future lease payments	211.8		646.1
Less amount representing interest	(31.4)		(247.3)
Total lease liability	$	180.4	$	398.8

Derivatives - Effect of Derivatives on the Consolidated Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Interest expense \| Interest rate swaps
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivatives not designated as hedging instruments	$ (3.2)	$ (51.6)	$ 1.8
Derivatives designated as hedging instruments	(11.0)	0.0	0.0
Cost of revenue \| Power contracts
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivatives not designated as hedging instruments	0.0	0.0	(0.5)
Other income (expense), net \| Foreign currency contracts
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivatives not designated as hedging instruments	$ (3.8)	$ (1.6)	$ 11.2

Share-Based Compensation, Settlement of Share-Based Awards, and Employee Benefit Plans - Equity Awards Outstanding (Details) - shares	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total outstanding awards (in shares)	21,300,000	20,400,000
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock (in shares)	2,700,000	600,000
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options (in shares)	18,600,000	19,800,000

Derivatives - Narrative (Details)	1 Months Ended	12 Months Ended
Derivatives - Narrative (Details)	Feb. 29, 2020 instrument	Dec. 31, 2020 USD ($) instrument segment	Dec. 31, 2019 USD ($) instrument	Dec. 31, 2018 USD ($) instrument	Dec. 31, 2020 GBP (£) instrument segment	Nov. 19, 2020 USD ($)	Nov. 19, 2020 GBP (£)	Mar. 26, 2020 USD ($) instrument	Mar. 26, 2020 GBP (£) instrument	Nov. 30, 2019 GBP (£) instrument £ / $	Nov. 29, 2019 USD ($)	Nov. 30, 2018 USD ($) instrument £ / $	Nov. 30, 2018 GBP (£) instrument £ / $	Nov. 30, 2017 USD ($) instrument £ / $	Nov. 30, 2017 GBP (£) instrument £ / $	Feb. 03, 2017 USD ($)	Dec. 31, 2016 instrument
Derivative [Line Items]
Interest expense		$ 268,400,000	$ 329,900,000	$ 281,100,000
Cash flow hedge losses expected to be reclassified as an increase to interest expense over the next twelve months		19,600,000
Liabilities		88,700,000	39,500,000
Derivatives designated as hedging instruments
Derivative [Line Items]
Liabilities		87,000,000.0	0
Interest rate swaps
Derivative [Line Items]
Liabilities		$ 87,000,000.0	$ 36,600,000
Interest Rate Swap - Entered in December 2016
Derivative [Line Items]
Number of derivative instruments \| instrument		3			3												7
Notional amount		$ 1,050,000,000.00														$ 1,500,000,000
Number of agreements matured during period \| instrument	1		1	2
Remaining maturity period		2 years
Interest Rate Swap - Entered in December 2016 \| Minimum
Derivative [Line Items]
Fixed interest rate specified in swap agreement		1.7625%			1.7625%
Interest Rate Swap - Entered in December 2016 \| Maximum
Derivative [Line Items]
Fixed interest rate specified in swap agreement		1.904%			1.904%
Interest Rate Swap - Entered in December 2018
Derivative [Line Items]
Number of derivative instruments \| instrument				4
Notional amount				$ 1,350,000,000
Number of instruments held deemed effective \| instrument		2			2
Notional amount deemed effective		$ 300,000,000
Interest Rate Swap - Entered in December 2018 \| Minimum
Derivative [Line Items]
Fixed interest rate specified in swap agreement		2.735%			2.735%
Interest Rate Swap - Entered in December 2018 \| Maximum
Derivative [Line Items]
Fixed interest rate specified in swap agreement		2.749%			2.749%
Foreign Currency Forward Contract - GBP to USD - Entered In November 2017
Derivative [Line Items]
Number of derivative instruments \| instrument														3	3
Notional amount														$ 161,300,000	£ 120,000,000
Forward exchange rate \| £ / $														1.34378	1.34378
Net payment (receipt) after settlement												$ (7,900,000)
Foreign Currency Forward Contract - GBP to USD - Entered In November 2018
Derivative [Line Items]
Number of derivative instruments \| instrument												1	1
Notional amount												$ 97,500,000	£ 75,000,000
Forward exchange rate \| £ / $												1.3002	1.3002
Net payment (receipt) after settlement											$ (800,000)
Foreign Currency Net Zero Cost Collar Contract - Entered In November 2019
Derivative [Line Items]
Number of derivative instruments \| instrument										2
Notional amount \| £										£ 100,000,000
Net payment (receipt) after settlement						$ 200,000		$ (1,900,000)
Number of derivative instruments settled \| instrument								1	1
Notional amount settled \| £							£ 50,000,000		£ 50,000,000
Foreign Currency Net Zero Cost Collar Contract - Entered In November 2019 \| Minimum
Derivative [Line Items]
Forward exchange rate \| £ / $										1.2375
Foreign Currency Net Zero Cost Collar Contract - Entered In November 2019 \| Maximum
Derivative [Line Items]
Forward exchange rate \| £ / $										1.3475
Foreign Currency Forward Contract - Entered in 2020
Derivative [Line Items]
Notional amount		$ 0
Net payment (receipt) after settlement		$ 5,400,000
Contract term		3 months
Foreign Currency Forward Contract - Entered during fourth quarter of 2020
Derivative [Line Items]
Number of derivative instruments \| segment		2			2
Notional amount		$ 107,100,000			£ 80,000,000
Forward exchange rate		1.3388			1.3388

Acquisitions - Pro Forma Summary (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Business Combinations [Abstract]
Revenue	$ 2,551.1	$ 2,520.7
Net loss	$ (106.3)	$ (493.4)

Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2020

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 Loss on Derivative Contracts		Accumulated Other Comprehensive Income (Loss)
Balance at December 31, 2017	$	17.8	$	—	$	17.8
Foreign currency translation adjustments, net of tax expense of $0.1 million	(17.8)		—		(17.8)


Balance at December 31, 2018	$	—	$	—	$	—
Foreign currency translation adjustments, net of tax benefit of $0.2 million	12.0		—		12.0


Balance at December 31, 2019	$	12.0	$	—	$	12.0
Foreign currency translation adjustments, net of tax expense of $1.1 million	8.8		—		8.8
Unrealized loss on derivative contracts, net of tax benefit of $16.3 million	—		(47.6)		(47.6)
Amount reclassified from Accumulated comprehensive income (loss) into earnings, net of tax benefit of $2.8 million (1)	—		8.2		8.2
Balance at December 31, 2020	$	20.8	$	(39.4)	$	(18.6)

(1) Includes interest expense recognized of $16.8 million, partially offset by amortization of off-market swap value of $5.8 million for the year ended December 31, 2020.

Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Dec. 31, 2020	Feb. 19, 2021	Jun. 30, 2020
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2020
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-39420
Entity Registrant Name	RACKSPACE TECHNOLOGY, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-3369925
Entity Address, Address Line One	1 Fanatical Place
Entity Address, Address Line Two	City of Windcrest
Entity Address, City or Town	San Antonio
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78218
City Area Code	210
Local Phone Number	312-4000
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	RXT
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	false
Entity Shell Company	false
Entity Public Float			$ 0
Entity Common Stock, Shares Outstanding		205,522,917
Documents Incorporated by Reference	Portions of the registrant's definitive Proxy Statement relating to the 2021 Annual Meeting of Stockholders are incorporated herein by references in Part III of this Annual Report on Form 10-K to the extent stated herein. Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant's fiscal year ended December 31, 2020
Entity Central Index Key	0001810019
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false

Property, Equipment, and Software, net (Tables)

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Schedule of Property, Equipment and Software

The following table shows the estimated useful lives used for property, equipment and software:


Classification						Estimated Useful Lives
Computers and equipment						3 to 5 years
Software						3 years
Furniture and fixtures						7 years
Buildings and leasehold improvements						2 to 39 years

Property, equipment and software, net, at December 31, 2019 and 2020 consisted of the following:


(In millions)	December 31, 2019		December 31, 2020
Computers and equipment	$	1,155.9	$	1,191.8
Software	441.6		472.4
Furniture and fixtures	31.3		22.4
Buildings and leasehold improvements	303.7		513.1
Land	32.2		32.6
Property, equipment and software, at cost	1,964.7		2,232.3
Less: Accumulated depreciation	(1,255.2)		(1,366.8)
Work in process	18.3		19.1
Property, equipment and software, net	$	727.8	$	884.6

Divestitures	12 Months Ended
Divestitures	Dec. 31, 2020
Discontinued Operations and Disposal Groups [Abstract]
Divestitures	Divestitures On February 1, 2017, we completed the sale of assets of our Mailgun business for total consideration of $40.2 million, which was comprised of an initial cash payment of $20.5 million, a promissory note receivable with principal amount of $20.0 million to be paid in annual installments over four years with a fair value of $14.8 million, and an equity interest in the new entity, Mailgun Technologies with a fair value of $4.9 million. In October 2017, Mailgun Technologies began exercising call rights to repurchase a portion of shares. During 2018, Mailgun Technologies exercised call rights and repurchased additional shares in multiple transactions throughout the year, which resulted in a total gain of $3.8 million. The gain associated with these share repurchases are included within “Gain on investments, net” in the Consolidated Statements of Comprehensive Loss for the year ended December 31, 2018. As of December 31, 2018, we no longer had an equity interest in Mailgun Technologies. In March 2019, we received $18.0 million in cash from Mailgun Technologies as repayment for the promissory note balance of $15.9 million, which included accrued interest of $1.2 million. As such, we recorded a gain of $2.1 million, which is reflected within "Gain on sale" in the Consolidated Statements of Comprehensive Loss for the year ended December 31, 2019. We did not have any divestitures for the year ended December 31, 2020.

Financing Obligations - Narrative (Details)	Dec. 31, 2020
Debt Disclosure [Abstract]
Weighted average imputed interest rate for financing obligations	7.30%

Acquisitions - Schedule of Adjustments to the Preliminary Allocation (Details) - USD ($) $ in Millions	12 Months Ended	14 Months Ended
	Dec. 31, 2020	Dec. 31, 2020	Nov. 15, 2019
Business Acquisition [Line Items]
Measurement Period Adjustments	$ 0.3	$ (0.3)
Onica
Business Acquisition [Line Items]
Onica Acquisition Consideration	323.4	323.4	$ 323.6
Measurement Period Adjustments	(0.2)	(0.2)
Liabilities assumed, net of other assets acquired	$ 10.7	$ 10.7	$ 11.0

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Allowance for doubtful accounts and accrued customer credits	$ 28.3	$ 17.0
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)	1,495,000,000.0	1,495,000,000.0
Common stock, shares issued (in shares)	201,800,000	165,400,000
Common stock, shares outstanding (in shares)	201,800,000	165,400,000

Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies

Nature of Operations and Basis of Presentation

Rackspace Technology, Inc. ("Rackspace Technology") (formerly known as Rackspace Corp. until its legal name change on June 11, 2020 and formerly known as Inception Topco, Inc. until its legal name change on March 31, 2020), 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 (the "Closing Date") 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.

On July 20, 2020, the board of directors of the company approved and effected a twelve-for-one stock split of the company’s common stock (the "Stock Split"). All common stock share and per-share data, excluding par value per share, included in the accompanying consolidated financial statements give effect to the Stock Split and have been adjusted retroactively for all periods presented.

On August 7, 2020, we completed our initial public offering (the "IPO"), in which we issued and sold 33,500,000 shares of our common stock at a public offering price of $21.00 per share. We received net proceeds of $666.6 million from sales of shares in the IPO, after deducting underwriters' discounts and commissions of $36.9 million, but before deducting offering expenses of $8.8 million.

The accompanying consolidated financial statements include the accounts of Rackspace Technology, Inc. and our wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("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 consolidated financial statements and accompanying notes. On an ongoing basis, we evaluate our estimates, including those related to the allowance for doubtful accounts, 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.

Impact of COVID-19

In March 2020, the World Health Organization declared COVID-19 a global pandemic. The effects of COVID-19 are rapidly evolving, and the full impact and duration of the virus are unknown. Currently, COVID-19 has not had a significant impact on our operations or financial performance; however, the ultimate extent of the impact of COVID-19 on our operational and financial performance will depend on certain developments, including the duration and spread of the outbreak and its impact on our customers, vendors and employees and its impact on our sales cycles as well as industry events, all of which are uncertain and cannot be predicted. In addition, we face a greater degree of uncertainty in making estimates and assumptions needed to prepare our consolidated financial statements and footnotes.

Cash, Cash Equivalents, and Restricted Cash

Our cash is comprised of bank deposits, overnight sweep accounts and money market funds and is held with high-credit quality U.S. and foreign financial institutions. We consider all highly liquid investments, such as money market funds, with original maturities of three months or less when acquired to be cash equivalents.

Restricted cash, included in "Other non-current assets" in our Consolidated Balance Sheets, represents collateral for letters of credit. Restricted cash was $3.3 million and $3.4 million as of December 31, 2019 and 2020, respectively.

Property, Equipment and Software and Definite-Lived Intangible Assets

Property, equipment and software is stated at cost, net of accumulated depreciation and amortization. Included in property, equipment and software are capitalized costs related to computer software developed or acquired for internal use. Capitalized computer software costs consist of purchased software licenses, implementation costs, and salaries and related compensation costs of employees and consultants for certain projects that qualify for capitalization. For cloud computing arrangements that include a software license, the software license element of the arrangement is accounted for in a manner consistent with the acquisition of other software licenses. For cloud computing arrangements that do not include a software license, the arrangement is accounted for as a service contract and is expensed as the services are provided.

Replacements and major improvements to property, equipment and software are capitalized, while maintenance and repairs are charged to expense as incurred. We also capitalize interest costs incurred during the acquisition, development and construction of certain assets until the asset is ready for its intended use. We capitalized interest of $1.0 million, $1.2 million and $0.8 million for the years ended December 31, 2018, 2019 and 2020, respectively.

Property, equipment and software is depreciated on a straight-line basis over the estimated useful life of the asset. Leasehold improvements are depreciated over the shorter of their estimated useful lives or the remaining lease term. Depreciation expense is recorded within "Cost of revenue" and "Selling, general and administrative expenses" on our Consolidated Statements of Comprehensive Loss.

The following table shows the estimated useful lives used for property, equipment and software:


Classification						Estimated Useful Lives
Computers and equipment						3 to 5 years
Software						3 years
Furniture and fixtures						7 years
Buildings and leasehold improvements						2 to 39 years

The cost of assets and related accumulated depreciation and amortization are written off upon retirement or disposal and any resulting gain or loss is credited or charged to income or expense.

Definite-lived intangible assets are primarily comprised of customer relationships and are stated at their acquisition date fair value less accumulated amortization. Definite-lived intangible assets are amortized using the straight-line method over their estimated useful lives as this method best approximates the economic benefit derived from such assets. Amortization expense is recorded within "Selling, general and administrative expenses" on our Consolidated Statements of Comprehensive Loss. See Note 15, "Acquisitions" for information on the useful lives of recently acquired definite-lived intangible assets.

Long-lived assets, including operating and finance lease assets (see "Leases" below for more information) 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.

Goodwill and Indefinite-Lived Intangible 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.

Goodwill is tested for impairment at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment (referred to as a component). We allocate goodwill to reporting units based on the reporting unit expected to benefit from the business combination. Assets and liabilities are assigned to each of our reporting units if they are employed by a reporting unit and are considered in the determination of the reporting unit fair value. Certain assets and liabilities are shared by multiple reporting units, and thus, are allocated to each reporting unit based on the relative size of a reporting unit, primarily based on revenue. We have three reporting units: Multicloud Services, Apps & Cross Platform, and OpenStack Public Cloud.

Beginning in 2018, we early adopted new accounting guidance that eliminated the second step from the goodwill impairment test. For the goodwill impairment tests completed during the years ended December 31, 2018, 2019 and 2020, we compared 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. Under the new guidance, 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 goodwill impairment test for the year ended December 31, 2018, indicated an impairment of goodwill within our Multicloud Services reporting unit, and we recorded a charge of $295.0 million within "Impairment of goodwill" in our Consolidated Statements of Comprehensive Loss. See Note 5, "Goodwill and Intangible Assets" for more information. The results of our goodwill impairment tests for the years ended December 31, 2019 and 2020 did not indicate any impairments of goodwill.

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. The results of our indefinite-lived asset impairment tests for the years ended December 31, 2018, 2019 and 2020 did not indicate any impairments of the Rackspace trade name.

The evaluation of goodwill and other indefinite-lived intangible assets for impairment is judgmental in nature and requires the use of significant estimates and assumptions, including estimation of the royalty rate, estimation of future revenue and projected margins, which are dependent on internal cash flow forecasts, estimation of the terminal growth rates and capital spending, and determination of discount rates. The discount rates used are based on our weighted average cost of capital and are adjusted for risks and uncertainties inherent in our business and in our estimation of future cash flows. The estimates and assumptions used to calculate the fair value of our reporting units and the Rackspace trade name from year to year are based on operating results, market conditions, and other factors. Changes in these estimates and assumptions could produce materially different results.

Business Combinations

Mergers and acquisitions are accounted for using the acquisition method, in accordance with accounting guidance for business combinations. Under the acquisition method, we allocate the fair value of purchase consideration to the tangible and intangible assets ("identifiable assets") acquired and liabilities assumed based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of the identifiable assets and liabilities is recorded as goodwill. When determining the fair values of identifiable assets acquired and liabilities assumed, including contingent consideration when applicable, we make significant estimates and assumptions based on historical data, estimated discounted future cash flows, expected royalty rates for trade names, as well as certain other information. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the fair value of identifiable assets acquired and liabilities assumed, with the corresponding offset to goodwill.

Investments

We have equity investments in entities in which we do not exercise significant influence. Investments in equity securities with readily determinable fair values are measured at fair value with changes in fair value recognized in net loss. Investments in equity securities that do not have readily determinable fair values are measured at cost less any impairments, adjusted for observable pricing changes in orderly transactions for identical or similar investments of the same issuer. We perform a qualitative assessment on these investments at each reporting period to determine whether any indicators of impairment exist. If an impairment exists, we recognize an impairment charge equal to the amount by which the carrying value exceeds the fair value of the investment.

Leases

On January 1, 2019, we adopted Accounting Standards Codification No. 842, Leases ("ASC 842") using the modified retrospective method, with the cumulative-effect adjustment recorded to the opening balance of retained earnings as of the January 1, 2019 adoption date. We also elected the transition option under ASC 842 whereby prior periods have not been retrospectively adjusted in the consolidated financial statements.

We determine if an arrangement is or contains a lease at inception. This determination depends on whether the arrangement conveys to us the right to control the use of an explicitly or implicitly identified asset for a period of time in exchange for consideration. Control of an underlying asset is conveyed to us if we obtain the rights to direct the use of and to obtain substantially all of the economic benefits from using the underlying asset.

We classify leases with contractual terms greater than 12 months as either operating or finance. Finance leases are generally those leases that allow us to substantially utilize an asset over its estimated life. Our finance leases primarily consist of equipment and certain data center facilities. All other leases are categorized as operating leases, which primarily consist of certain data centers and office space. Our leases generally have terms ranging from 1 to 20 years for data centers, 2 to 5 years for equipment and 1 to 10 years for office space.

Lease liabilities are recognized based on the present value of lease payments, reduced by lease incentives, at the lease commencement date. We use an incremental borrowing rate to determine the present value of lease payments as the interest rate implicit in most of our leases is not readily determinable. Our incremental borrowing rate is the rate of interest that we would have to pay to borrow an amount equal to the lease payments, on a collateralized basis and in a similar economic environment over a similar term. The rate is dependent on several factors, including the lease term, currency of the lease payments and the company’s credit rating. Operating and finance lease liabilities are recorded in our Consolidated Balance Sheets as current and non-current liabilities.

Lease assets are recognized based on the related lease liabilities, plus any prepaid lease payments and initial direct costs from executing the leasing arrangement. Operating and finance lease assets are included in "Operating right-of-use assets" and "Property, equipment and software, net," respectively, in our Consolidated Balance Sheets.

Our lease terms include the base, non-cancelable lease term, and any options to extend or terminate the lease when it is reasonably certain at commencement that we will exercise such options. Some of our data center and office space leases contain such extension and termination options. We will remeasure our lease liability and adjust the related right-of-use asset upon the occurrence of the following: lease modifications not accounted for as a separate contract; a triggering event that changes the certainty of the lessee exercising an option to renew or terminate the lease, or purchase the underlying asset; or the resolution of a contingency upon which any variable lease payments are based such that those payments become fixed.

Operating lease expense is recognized on a straight-line basis over the lease term. Finance lease assets are amortized on a straight-line basis over the shorter of the estimated useful lives of the assets or the lease term. The interest component of a finance lease is included in "Interest expense" and recognized using the effective interest method over the lease term. Leases with terms of less than 12 months at commencement are expensed on a straight-line basis over the lease term in accordance with the short-term lease practical expedient under ASC 842. We have also elected the practical expedient under ASC 842 to not separate lease and non-lease components within a leasing arrangement. Non-lease components primarily include payments for maintenance and utilities. We have elected to apply both of these practical expedients to all classes of underlying assets.

Variable payments related to a lease are expensed as incurred. These costs often relate to payments for a proportionate share of real estate taxes, insurance, common area maintenance, and other operating costs in addition to base rent.

We lease certain data center facilities that are build-to-suit arrangements, for which construction had been completed prior to or was in process upon the adoption of ASC 842, effective January 1, 2019. For purposes of applying ASC 842’s transition provisions, we elected to first assess lease classification for each applicable build-to-suit lease arrangement at lease inception under previous lease accounting guidance ("ASC 840"), and then apply ASC 842’s transition provisions based on those assessments. We derecognized the assets and liabilities associated with these arrangements for transitional purposes and recognized lease assets and lease liabilities for either operating or finance leases corresponding to the operating or capital lease classification designations determined in our ASC 840 reassessments. In addition, we lease certain properties that were deemed failed sale-leasebacks under ASC 840. We continue to account for these arrangements as failed sale-leasebacks under ASC 842. Refer to the "Financing Obligations" section below for further discussion.

We are the intermediate lessor in certain sublease arrangements and account for both the head lease and the associated sublease as separate operating leases. We offset rental income against head lease operating costs within "Cost of revenue" or "Selling, general and administrative expenses," depending on whether the head lease is a data center or office space lease.

We are deemed a lessor in certain hosting arrangements where our equipment is located in a customer’s data center. We account for these arrangements as either sales-type or direct finance leases.

Debt Issuance Costs

Debt issuance costs such as underwriting, financial advisory, professional fees and other similar fees are deferred and recognized in interest expense over the estimated life of the related debt instrument using the effective interest method or the straight-line method, as applicable. Debt issuance costs related to our debt instruments are classified as a direct deduction from the carrying value of the long-term debt liability or as an asset within "Other non-current assets" on the Consolidated Balance Sheets.

Financing Obligations

From time to time, we enter into installment payment arrangements with certain equipment and software vendors. These arrangements are generally non-interest bearing, and require the calculation of an imputed interest rate.

We also may enter into sale-leaseback arrangements for certain equipment in which we sell the assets to a third party and concurrently lease the assets back for a specified term. These arrangements generally do not qualify as asset sales because they include a purchase option that we are reasonably certain to exercise and therefore they are accounted for as failed sale-leasebacks. In addition, we lease properties that were deemed failed sale-leasebacks upon the adoption of ASC 842 due to options to purchase the underlying assets at an exercise price that is not at fair value or due to the present value of the future minimum lease payments exceeding the fair value of the underlying assets.

See Note 9, "Financing Obligations" for disclosure of future minimum payments under vendor financing and failed sale-leaseback arrangements.

Revenue Recognition

All of our revenue is from contracts with customers. We account for a contract when it has approval and commitment from all parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectibility of consideration is probable. We provide cloud computing to customers, which is broadly defined as the delivery of computing, storage and applications over the Internet. Cloud computing is a service transaction under which the services we provide vary on a daily basis. The totality of services provided represent a single integrated solution tailored to the customer’s specific needs. As such, our performance obligations to our customers consist of a single integrated solution delivered as a series of distinct daily services. We recognize revenue on a daily basis as services are provided in an amount that reflects the consideration to which we expect to be entitled in exchange for the services. Our usage-based arrangements generally include variable consideration components consisting of monthly utility fees with a defined price and undefined quantity. Additionally, our contracts contain service level guarantees that provide discounts when we fail to meet specific obligations and certain services may include volume discounts based on usage. As these variable consideration components consist of a single distinct daily service provided on a single performance obligation, we account for this consideration as services are provided and earned. In accordance with the series guidance within Accounting Standards Codification No. 606, Revenue from Contracts with Customers ("ASC 606"), regarding modification to a single performance obligation, when contracts are modified to add, remove or change existing services, the modification will only affect the accounting for the remaining distinct goods and services provided. As such, our contract modifications are accounted for prospectively.

Our largest source of revenue relates to fees associated with certain arrangements within our Multicloud Services offerings that generally have a fixed term usually not exceeding 36 months with a monthly recurring fee based on the computing resources utilized and provided to the customer, the complexity of the underlying infrastructure, and the level of support we provide. Customers generally have the right to cancel their contracts by providing prior written notice to us of their intent to cancel the remainder of the contract term. Many of our contracts require our customers to pay early termination fees in the event they cancel a contract prior to the end of its term, typically amounting to the outstanding value of the contract. These fees are recognized as revenue in the period of contract termination as we have no further obligation to perform.

Our other primary sources of revenue are for public cloud services within our Multicloud Services offering, and our OpenStack Public Cloud and Apps & Cross Platform offerings. Customers are generally invoiced monthly based on usage. Contracts for these arrangements typically operate on a month-to-month basis and can be canceled at any time without penalty. We also provide customers with professional services for the design and implementation of application, security and data services. Professional service contracts are either fixed-fee or time-and-materials based. We typically consider these services to be a separate performance obligation from other integrated solutions being provided to the same customer. Our performance obligations under these arrangements are typically to provide the services on a daily basis over a period of time and therefore we recognize revenue as the services are performed.

We also offer customers the flexibility to select the best combination of offerings in order to meet the requirements of their unique applications and provide the technology to seamlessly operate and manage multiple cloud computing environments. Judgment is required in assessing whether a service is distinct, including determination of whether the customer could benefit from the service on its own or in conjunction with other readily available resources and whether certain services are highly integrated into a bundle of services that represent the combined output specified by the customer. Arrangements can contain multiple performance obligations that are distinct, which are accounted for separately. Each performance obligation is recognized as services are provided based on their standalone selling price ("SSP"). Judgment is required to determine the SSP for each of our distinct performance obligations. We utilize a range of prices when developing our estimates of SSP.

Revenue recognition for revenue generated from arrangements in which we resell third party infrastructure bundled with our managed services, requires judgment to determine whether revenue can be recorded at the gross sales price or net of third party fees. Typically, revenue is recognized on a gross basis when it is determined that we are the principal in the relationship. We are considered the principal in the relationship when we are primarily responsible for fulfilling the contract and obtain control of the third party infrastructure before transferring it as an integral part of our performance obligation to provide services to the customer. Revenue is recognized net of third party fees when we determine that our obligation is only to facilitate the customers’ purchase of third party infrastructure.

Revenue is reported net of customer credits and sales and use tax.

Contract Balances

Timing of revenue recognition may differ from the timing of invoicing to customers. Invoiced amounts and accrued unbilled usage are recorded in accounts receivable and either deferred revenue or revenue.

Trade accounts receivable are recorded at the invoiced amount and generally do not bear interest. Our accounts receivable balance also includes unbilled amounts representing revenue recorded for usage-based services provided in the period but which are invoiced in arrears. We record an allowance for doubtful accounts for estimated losses resulting from uncollectible receivables. When evaluating the adequacy of the allowance, we consider historical bad debt write-offs and all known facts and circumstances such as current economic conditions and trends, customer creditworthiness, and specifically identified customer risks.

Our arrangements contain service level commitments with our customers. To the extent that such service levels are not achieved or are otherwise disputed, we are required to issue service credits for a portion of the service fees paid by our customers. At each reporting period, we accrue for credits which are due to customers, but not yet issued.

We recognize revenue for certain fixed term contracts in which services are provided in advance of the first invoice. This revenue is recognized as a contract asset, separate from accounts receivable. A contract liability, presented as deferred revenue on our Consolidated Balance Sheets, is recognized when services are invoiced prior to being provided.

Cost Incurred to Obtain and Fulfill a Contract

We recognize assets for the incremental costs to obtain and fulfill a contract with a customer. Costs to obtain a contract include sales commissions on the initial contract while costs to fulfill a contract include implementation and set-up related expenses. These costs are capitalized within the Consolidated Balance Sheets and are recognized as expense over the period the related services are expected to be delivered to the customer, which is approximately 30 months including expected renewals. If such period is less than 12 months, we have elected to apply the practical expedient under ASC 606 and expense costs as incurred. We include expected renewals in the period over which related services are expected to be delivered because sales commissions paid on renewals are not material and not commensurate with sales commissions paid on the initial contract. Sales commissions expense is recorded within "Selling, general and administrative expenses" and implementation and set-up costs are recorded within "Cost of revenue" in the Consolidated Statements of Comprehensive Loss. These capitalized costs are included in "Other non-current assets" in the Consolidated Balance Sheets.

Cost of Revenue

Cost of revenue primarily consists of expenses related to personnel, software licenses, the costs to operate our data center facilities, including depreciation expense, and infrastructure expense related to our service offerings bundled with third party clouds. Personnel expenses include the salaries, non-equity incentive compensation and related expenses of our support teams and data center employees. Data center facility costs include rent, utility costs, maintenance fees, and bandwidth.

Selling, General and Administrative Expenses

Selling, general and administrative expenses primarily consist of: (i) employee-related costs for functions such as executive management, sales and marketing, research and development, finance and accounting, human resources, information technology, and legal; (ii) costs for advertising and promoting our services and to generate customer demand; (iii) general costs such as professional fees, office facilities, software, and equipment expenses, including the related depreciation, and other overhead costs; and (iv) definite-lived intangibles amortization expense.

Advertising costs are expensed in the period incurred. Advertising expense was $41.9 million, $39.9 million and $42.5 million for the years ended December 31, 2018, 2019 and 2020, respectively.

Research and development expense was $74.7 million, $56.0 million and $36.7 million, for the years ended December 31, 2018, 2019 and 2020, respectively.

Share-Based Compensation

We grant equity awards, including stock options and restricted stock, to eligible participants. The fair value of stock options with either solely a service requirement or with the combination of service and performance requirements is determined using the Black-Scholes valuation model, which requires us to make assumptions and judgments about variables related to our common stock and the related awards. The fair value of restricted stock with either solely a service requirement or with the combination of service and performance requirements is based on the closing fair market value of our common stock on the date of grant. The fair value of awards with vesting conditions dependent upon market performance is determined using a Monte Carlo simulation. Share-based compensation expense is recognized on a straight-line basis over the service period or over our best estimate of the period over which the performance condition will be met, as applicable.

Income Taxes

Income taxes are accounted for using the asset and liability method. Deferred income taxes are provided for temporary differences in recognizing certain income, expense, and credit items for financial reporting purposes and tax reporting purposes. Such deferred income taxes primarily relate to the difference between the tax bases of assets and liabilities and their financial reporting amounts. Deferred tax assets and liabilities are measured by applying enacted statutory tax rates applicable to the future years in which deferred tax assets or liabilities are expected to be settled or realized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversals of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment.

We are under certain domestic and foreign tax audits. Due to the complexity involved with certain tax matters, there is the possibility that the various taxing authorities may disagree with certain tax positions filed on our income tax returns. We have considered all relevant facts and circumstances and believe that we have made adequate provision for all uncertain tax positions.

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy below prioritizes the inputs used in measuring fair value into three categories:

Level 1 – Observable inputs such as quoted prices in active markets for identical assets or liabilities;

Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

Level 3 – Unobservable inputs that are supported by little or no market activity, which require management judgment or estimation. The fair values are therefore determined using model-based techniques, including discounted cash flow models.

Financial instruments measured at fair value on a recurring basis primarily consist of money market funds, an equity investment we disposed of in 2019, and derivative instruments. The fair values of money market funds and the aforementioned equity investment are measured using Level 1 inputs, which are based on a market approach using prices and other relevant information generated by market transactions involving identical or comparable assets. See Note 6, "Investments" for more information on the inputs used to fair value a certain equity investment. The fair values of derivative instruments are measured using Level 2 inputs. See "Derivative Instruments" below for more information on the inputs used to fair value our derivative instruments.

The fair values of our long-term debt instruments are measured using Level 2 inputs. See Note 7, "Debt" for more information on the inputs used to fair value our long-term debt instruments.

The fair values of acquired identifiable assets and liabilities assumed in acquisitions accounted for as business combinations are measured using Level 3 inputs. Refer to "Business Combinations" above for more information on the inputs used to fair value our identifiable assets and liabilities assumed in acquisitions.

The fair values of our reporting units and indefinite-lived intangible assets are measured using Level 3 inputs. As a result of our annual goodwill impairment test, during the year ended December 31, 2018, we reduced the carrying value of one of our reporting units by $295.0 million to its implied fair value. See "Goodwill and Indefinite-lived Intangible Assets" above for more information on the inputs used to fair value our reporting units and indefinite-lived intangible assets.

Foreign Currency

We have assessed the functional currency of each of our international subsidiaries and have generally designated the local currency to be their respective functional currencies. The assets and liabilities of our international subsidiaries are translated to the U.S. dollar at the end-of-period exchange rates. Capital accounts are determined to be of a permanent nature and are therefore translated using historical exchange rates. Revenue and expenses are translated using average exchange rates.

Foreign currency translation adjustments arising from differences in exchange rates from period to period are recorded within "Accumulated other comprehensive income" in the Consolidated Balance Sheets.

Transaction gains or losses in currencies other than the functional currency are included as a component of "Other income (expense), net" in the Consolidated Statements of Comprehensive Loss.

Derivative Instruments

We utilize derivative instruments, including interest rate swap agreements, foreign currency hedging contracts and fixed price power contracts, to manage our exposure to interest rate risk, foreign currency fluctuations and commodity price 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 first lien term loan facility ("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.

As of December 31, 2019, none of our interest rate swap agreements were designated as cash flow hedges of interest rate risk for accounting purposes, therefore, all changes in the fair value of the interest rate swap agreements were recorded to "Interest expense" in the Consolidated Statements of Comprehensive Loss. 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 ("off-market swap value"). The cash flow hedges were expected to be highly effective on the designation date and, on a quarterly basis, we perform retrospective and prospective assessments to determine whether the cash flow hedges continue to be highly effective, which we have deemed to be a dollar-offset ratio between 80% to 125%. As long as the cash flow hedges are highly effective, changes in fair value are recorded to "Accumulated other comprehensive income (loss)" in the Consolidated Balance Sheets and reclassified to "Interest expense" in the period when the underlying transaction affects earnings. The off-market swap value is amortized as a reduction to "Interest expense" on a straight-line basis over the remaining term of each cash flow hedge. The income tax effects of cash flow hedges are released from "Accumulated other comprehensive income (loss)" in the period when the underlying transaction affects earnings. Any stranded income tax effects are released from "Accumulated other comprehensive income (loss)" into "Benefit (provision) for income taxes" under the portfolio approach. As of December 31, 2020, all of our cash flow hedges were highly effective.

Our interest rate swaps are recognized at fair value in the 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.

Foreign Currency Hedging Contracts

The majority of our customers are invoiced, and the majority of our expenses are paid, by us or our subsidiaries in the functional currency of our company or our subsidiaries, respectively. We also have exposure to foreign currency transaction gains and losses as the result of certain receivables due from our foreign subsidiaries. As such, the results of operations and cash flows of our foreign subsidiaries are subject to fluctuations in foreign currency exchange rates. The objective of our foreign currency hedging contracts is to manage our exposure to foreign currency movements. To accomplish this objective, we may enter into foreign currency forward contracts and collars. A forward contract is an agreement to buy or sell a quantity of a currency at a predetermined future date and at a predetermined exchange rate. A collar is a strategy that uses a combination of a purchased put option and a sold call option with equal premiums to hedge a portion of anticipated cash flows, or to limit possible gains or losses on an underlying asset or liability to a specific range. The put and call options have identical notional amounts and settlement dates.

These contracts are recognized at fair value in the Consolidated Balance Sheets and are valued using pricing models that rely on market observable inputs such as current exchange rates, which are classified as Level 2 inputs within the fair value hierarchy. We have not designated these contracts as cash flow hedges for accounting purposes, therefore, all changes in the fair value are recorded in "Other income (expense), net."

Fixed Price Power Contracts

We consume a large quantity of power to operate our data centers and as such are exposed to risk associated with fluctuations in the price of power. The objective of our fixed price power contracts is to manage our exposure to the price of power. The fixed price power contracts, which we enter into from time to time to manage the risk related to the uncertainty of future power prices, allow for the purchase of a set volume of power at a fixed rate.

We evaluate every fixed price power contract to determine if the contract meets the definition of a derivative, which requires recognizing the contract at fair value on the Consolidated Balance Sheets with changes in the fair value recorded in the Consolidated Statements of Comprehensive Loss. If a contract is deemed to be a derivative, we also determine if it qualifies for the normal purchases normal sales scope exception to derivative accounting, which would result in expensing electricity usage as incurred. Power contracts accounted for as derivatives are valued using pricing models that rely on market observable inputs such as current power prices, which are classified as Level 2 inputs within the fair value hierarchy.

We entered into a fixed price power contract for a London data center in September 2015 and accounted for it as a derivative that did not qualify for the normal purchases normal sales exception. The contract, which ended in September 2018, was not designated as a cash flow hedge for accounting purposes, and therefore, any changes in fair value were recorded in "Cost of revenue." As of December 31, 2019 and 2020, we do not have any power contracts recorded at fair value on the Consolidated Balance Sheets.

Subsequent Events

On January 15, 2021, we completed the sale of a parcel of undeveloped land in the United Kingdom adjacent to one of our existing data centers. The net book value of the land prior to the sale was $11 million and we received net cash proceeds of $32 million, which resulted in an approximate gain of $21 million.

On February 2, 2021, we issued 2,665,935 shares of common stock to DPH 123, LLC for no additional consideration pursuant to the Agreement and Plan of Merger, dated as of September 6, 2017, in connection with our November 15, 2017 acquisition of Datapipe Parent, Inc. ("Datapipe"). Refer to Note 11, "Stockholders' Equity" for more information.

On February 9, 2021, we issued $550.0 million of 3.50% Senior Secured Notes due 2028 ("3.50% Senior Secured Notes") that will mature on February 15, 2028 and bear interest at a fixed rate of 3.50% per year, payable semi-annually on each February 15 and August 15 through maturity. The 3.50% Senior Secured Notes are not subject to registration rights.

On February 9, 2021, we amended and restated our first lien credit agreement, which included a new seven-year $2,300.0 million senior secured first lien term loan facility (the "New Term Loan Facility") and our existing $375.0 million senior secured first lien revolving credit facility. We borrowed the entire $2,300.0 million New Term Loan Facility and used the borrowings under the New Term Loan Facility, together with the proceeds from the issuance of the 3.50% Senior Secured Notes described above, to repay all borrowings under our existing term loan facility, to pay related fees and expenses and for general corporate purposes.

Borrowings under the New Term Loan Facility bear interest at an annual rate equal to an applicable margin plus, at our option, either (a) a LIBOR rate determined by reference to the costs of funds for Eurodollar deposits for the interest period relevant to such borrowing, adjusted for certain additional costs, subject to a 0.75% floor, 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) the one-month adjusted LIBOR plus 1.00%. The applicable margin for the New Term Loan Facility is 2.75% for LIBOR loans and 1.75% for base rate loans. Interest is due at the end of each interest period elected, not exceeding 90 days, for LIBOR loans and at the end of every calendar quarter for base rate loans.

Beginning June 30, 2021, we will also be required to make quarterly amortization payments on the New Term Loan Facility in an annual amount equal to 1.0% of the original principal amount of the New Term Loan Facility, with the balance due at maturity on February 15, 2028.

On February 12, 2021, we restructured our interest rate swap positions using a strategy commonly referred to as a “blend and extend” in order to continue to manage our exposure to interest rate risk under the New Term Loan Facility. We executed a new interest rate swap with a notional amount of $1.35 billion maturing on February 9, 2026, effectively blending the liability position of our existing interest rate swap agreements into the new swap and extending the term of our hedged position. The new interest rate swap is indexed to three-month LIBOR and will be 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 this transaction, all existing interest rate swap agreements with the same counterparty were terminated. Two additional interest rate swap agreements with other counterparties were not terminated; however, we entered into an offsetting trade to net against those swap positions to remove the variability of the cash flows of the swaps but allow the original liability to be settled through February 2022. Refer to Note 16, “Derivatives” for more information on our existing interest rate swap agreements.

Reclassifications

Certain reclassifications have been made to the prior period consolidated financial statements to conform to the current period presentation. Specifically, the non-current portion of "Finance lease liabilities" is now presented separately from "Other non-current liabilities" in the Consolidated Balance Sheets. This presentation change is due to the modification of certain leases in June 2020 which resulted in a change of classification from operating leases to finance leases, increasing the balance of the non-current portion of "Finance lease liabilities."

Recent Accounting Pronouncements

Recently Adopted

Financial Instruments-Credit Losses

In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments, which requires financial assets measured at amortized cost to be presented at the net amount expected to be collected using an allowance for expected credit losses, to be estimated by management based on historical experience, current conditions, and reasonable and supportable forecasts. We adopted this guidance on January 1, 2020, using the modified retrospective approach. The adoption of this guidance did not have a material impact on our consolidated financial statements.

Derivatives and Hedging-Targeted Improvements to Accounting for Hedging Activities

In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and to simplify the application of the hedge accounting guidance. The guidance expands and refines hedge accounting for both nonfinancial and financial risk components and aligns the recognition and presentation of the effects of hedging instruments and hedged items in the financial statements. The guidance also amends the presentation and disclosure requirements and changes how entities assess hedge effectiveness.

We adopted this ASU on January 1, 2020. The guidance applies to any existing hedges or new derivative instruments that are designated as hedges for derivative accounting purposes in future periods. We have historically not designated our interest rate swaps or foreign currency hedging contracts as hedges for derivative accounting purposes, however, on January 9, 2020, we designated certain of our interest rate swap agreements as cash flow hedges. Refer to Note 16, "Derivatives," and "Interest rate swaps" above for the cash flow hedge disclosures required by the provisions of this guidance.

Fair Value Measurement Disclosures

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13"), which removes, modifies or adds certain disclosure requirements for fair value measurement disclosures. We adopted this guidance on January 1, 2020 on a prospective basis. The adoption did not have a material impact on our consolidated financial statements.

Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement

In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. We adopted this guidance on January 1, 2020 on a prospective basis. The adoption of this guidance primarily resulted in changes to the presentation of certain implementation costs within our consolidated financial statements. Historically, these costs were capitalized as part of "Property, equipment, and software, net" and amortized over the useful life of the related software or hosting arrangement. Upon adoption, eligible costs incurred are now recorded within "Prepaid expenses" and "Other non-current assets" and amortized to either "Cost of revenue" or "Selling, general and administrative expenses" over the useful life of the related software or hosting arrangement. In addition, the cash flow presentation of these costs changed from investing cash flows under previous guidance to operating cash flows under the new guidance. The adoption of this guidance did not have a material impact on our consolidated financial statements.

Reference Rate Reform

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. In July 2020, we elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. We continue to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

Not Yet Adopted

Simplifying the Accounting for Income Taxes

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes, which removes certain exceptions to the general principles in Topic 740 and improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The guidance is effective for us on January 1, 2021. We are currently evaluating the impact this guidance will have on our consolidated financial statements.

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Benefit for Income Taxes

The benefit for income taxes consisted of the following:


	Year Ended December 31,
(In millions)	2018		2019		2020
Federal	$	(6.0)	$	5.1	$	(4.1)
Foreign	15.6		12.1		9.6
State	(16.8)		3.5		1.9
Total current	(7.2)		20.7		7.4
Deferred:
Federal	(22.5)		(32.4)		(58.6)
Foreign	(3.4)		2.0		(6.0)
State	3.2		(10.3)		(9.0)
Total deferred	(22.7)		(40.7)		(73.6)
Total benefit for income taxes	$	(29.9)	$	(20.0)	$	(66.2)

Schedules of Loss Before Income Taxes

Loss before income taxes from U.S. and foreign operations were as follows:


	Year Ended December 31,
(In millions)	2018		2019		2020
U.S.	$	(515.5)	$	(143.2)	$	(311.1)
Foreign	15.0		20.9		(0.9)
Total loss before income taxes	$	(500.5)	$	(122.3)	$	(312.0)

Schedule of Reconciliation for Statutory Federal Tax Rate

A reconciliation of the statutory federal tax rate to the effective tax rate is as follows:


	Year Ended December 31,
	2018		2019		2020
Statutory federal tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal benefit	2.2	%	6.1	%	2.4	%
Tax rate differentials for international jurisdictions	(2.7)	%	(2.7)	%	(2.5)	%
Research and development credit	0.1	%	2.4	%	2.9	%
U.S. Tax Reform	(1.9)	%	—	%	—	%
Tax impact of goodwill impairment	(12.3)	%	—	%	—	%
Effects of other enacted tax law and rate changes	—	%	(3.9)	%	(0.4)	%
Valuation allowance	(0.3)	%	(2.0)	%	(0.5)	%
Share-based compensation	—	%	(2.1)	%	(0.3)	%
Nondeductible compensation	—	%	—	%	(2.2)	%
Other, net	(0.1)	%	(2.4)	%	0.8	%
Effective tax rate	6.0	%	16.4	%	21.2	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities are as follows:


(In millions)	December 31, 2019		December 31, 2020
Deferred tax assets:
Share-based compensation	$	10.9	$	15.6
Accruals not currently deductible	20.7		21.3
Interest rate swaps	9.3		22.2
Finance lease liabilities	10.1		67.7
Net operating loss carryforwards	51.7		113.3
Foreign tax credit	34.0		33.5
Research and development credits	23.2		30.6
Depreciation and amortization	9.5		7.8
Disallowed interest carryforward	40.2		5.4
Operating lease liabilities	74.8		37.9
Other	12.1		17.7
Total gross deferred tax assets	296.5		373.0
Valuation allowance	(53.3)		(54.4)
Total net deferred tax assets	243.2		318.6
Deferred tax liabilities:
Depreciation and amortization	452.0		484.5
Prepaids	7.3		1.3
Finance lease liabilities	7.0		4.4

Capitalized costs	12.7		13.9
Unremitted foreign earnings	0.1		—
Debt related	9.9		7.4
Operating right-of-use assets	70.8		36.2
Other	1.1		3.2
Total gross deferred tax liabilities	560.9		550.9
Net deferred tax liabilities	$	317.7	$	232.3

Schedule of Unrecognized Tax Benefits Roll Forward

A rollforward of unrecognized tax benefits, excluding accrued penalties and interest, for the years ended December 31, 2018, 2019 and 2020 is as follows:


	Year Ended December 31,
(In millions)	2018		2019		2020
Balance, beginning of period	$	67.2	$	47.0	$	53.2
Additions based on tax positions related to the current year	2.7		4.1		4.9

Additions for tax positions of prior years	3.3		11.7		11.1
Reduction for statute expiration	(17.9)		(2.7)		(2.4)
Reductions for tax positions of prior years	(3.9)		(6.2)		(15.8)
Settlements	(4.4)		(0.7)		—
Balance, end of period (1)	$	47.0	$	53.2	$	51.0

(1) Included within non-current liabilities in the Consolidated Balance Sheets, except for $0.6 million of which is included in current liabilities as of December 31, 2020

Segment Reporting

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Reporting

We have organized our operations into the following three operating segments, which correspond directly to our reportable segments: Multicloud Services, Apps & Cross Platform, and OpenStack Public Cloud. 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 non-GAAP gross profit, which is a non-GAAP measure of profitability. For the calculation of non-GAAP gross profit, we allocate certain costs, such as data center operating costs, customer support costs, license expense, and depreciation, to our segments generally based on segment revenue.

The table below presents a reconciliation of revenue by reportable segment to consolidated revenue and a reconciliation of segment non-GAAP gross profit to total consolidated gross profit for the years ended December 31, 2018, 2019 and 2020.


	Year Ended December 31,
(In millions)	2018		2019		2020
Revenue by segment:
Multicloud Services	$	1,803.4	$	1,832.6	$	2,141.5
Apps & Cross Platform	290.0		319.2		336.6
OpenStack Public Cloud	359.4		286.3		229.0

Total consolidated revenue	$	2,452.8	$	2,438.1	$	2,707.1

Non-GAAP gross profit by segment:
Multicloud Services	$	736.6	$	774.7	$	810.2
Apps & Cross Platform	107.3		118.7		115.5
OpenStack Public Cloud	185.0		146.0		100.3

Less:
Share-based compensation expense	(4.1)		(5.7)		(14.5)
Other compensation expense (1)	(7.3)		(2.8)		(5.9)
Purchase accounting impact on revenue (2)	(1.2)		0.2		—
Purchase accounting impact on expense (2)	(6.9)		(9.6)		(5.9)
Restructuring and transformation expenses (3)	(2.3)		(10.3)		(15.3)
Total consolidated gross profit	$	1,007.1	$	1,011.2	$	984.4

(1) Adjustments for expense related to the cash settlement of unvested equity awards that were outstanding at the consummation of the Rackspace Acquisition, retention bonuses, mainly in connection with restructuring and transformation projects, and the related payroll tax.

(2) Adjustment for the impact of purchase accounting from the Rackspace Acquisition on revenue and expenses.

(3) Adjustment for the impact of business transformation and optimization activities, as well as associated severance, facility closure costs and lease termination expenses.

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

Geographic Information

The tables below present revenue by geographic region and by country for the years ended December 31, 2018, 2019 and 2020. Revenue amounts are based upon the location of the support function servicing the customer.


	Year Ended December 31,
(In millions)	2018		2019		2020
Americas	$	1,785.1	$	1,787.5	$	2,027.8
EMEA	582.7		564.6		585.2
APJ	85.0		86.0		94.1
Total revenue	$	2,452.8	$	2,438.1	$	2,707.1


	Year Ended December 31,
(In millions)	2018		2019		2020
United States	$	1,734.0	$	1,735.3	$	1,948.0
United Kingdom	582.0		564.6		583.6
Other foreign countries (1)	136.8		138.2		175.5
Total revenue	$	2,452.8	$	2,438.1	$	2,707.1

(1) No other foreign country had revenue that exceeded 10% of total consolidated revenue for the years ended December 31, 2018, 2019 and 2020.

The table below presents property, equipment and software, net by country, based on the physical location of the assets, as of December 31, 2019 and 2020:


(In millions)	December 31, 2019		December 31, 2020
United States	$	517.0	$	684.3
United Kingdom	180.0		170.9
Other foreign countries (1)	30.8		29.4
Total property, equipment and software, net	$	727.8	$	884.6

(1) No other foreign country had property, equipment and software, net that exceeded 10% of total consolidated property, equipment and software, net as of December 31, 2019 and 2020

- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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+ Details

Debt (Tables)

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Schedule of Debt

Debt consisted of the following:


	December 31, 2019
(In millions)	Term Loan Facility		8.625% Senior Notes due 2024		Total
Principal balance	$	2,824.6	$	1,120.2	$	3,944.8
Unamortized debt issuance costs	(48.6)		(18.0)		(66.6)
Unamortized debt discount	(4.9)		—		(4.9)
Total debt	2,771.1		1,102.2		3,873.3
Less: current portion of debt	(29.0)		—		(29.0)
Debt, excluding current portion	$	2,742.1	$	1,102.2	$	3,844.3


	December 31, 2020
(In millions)	Term Loan Facility		5.375% Senior Notes due 2028		Accounts Receivable Financing Agreement		Total
Principal balance	$	2,795.6	$	550.0	$	65.0	$	3,410.6
Unamortized debt issuance costs	(36.6)		(7.6)		—		(44.2)
Unamortized debt discount	(3.7)		—		—		(3.7)
Total debt	2,755.3		542.4		65.0		3,362.7
Less: current portion of debt	(29.0)		—		(14.4)		(43.4)
Debt, excluding current portion	$	2,726.3	$	542.4	$	50.6	$	3,319.3

Schedule of Maturities of Debt Obligations

The maturities of debt obligations for the next five years at December 31, 2020 are as follows:


(In millions)	Amount
Year ending:
2021	$	43.4
2022	79.6
2023	2,737.6
2024	—
2025	—
Thereafter	550.0
Total	$	3,410.6

- 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

Stockholders' Equity	12 Months Ended
Stockholders' Equity	Dec. 31, 2020
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity Common Stock As of December 31, 2019 and 2020, we had 165.4 million and 201.8 million shares of our common stock legally issued and outstanding, respectively. We have one class of authorized common stock. The rights and privileges provided to our common stockholders are as follows: •Voting Rights—The holders of our common stock are entitled to one vote per share on all matters submitted for action by the stockholders generally. •Dividend Rights—Subject to any preferential rights of any then outstanding preferred stock, all shares of our common stock are entitled to share equally in any dividends our board of directors may declare from legally available sources. •Liquidation Rights—Upon our liquidation, dissolution or winding up, whether voluntary or involuntary, after payment in full of the amounts required to be paid to holders of any then outstanding preferred stock, all shares of our common stock are entitled to share equally in the assets available for distribution to stockholders after payment of all of our prior obligations. Preferred Stock As of December 31, 2019 and 2020, there were 5.0 million authorized shares of preferred stock, of which none was issued or outstanding. Repurchase of Common Stock During the year ended December 31, 2019, we repurchased $2.2 million, or 0.2 million shares, of our common stock. These shares were subsequently retired. As a result, we recorded a $2.2 million decrease to "Additional paid-in-capital" for the year ended December 31, 2019. Datapipe Contingent Shares On September 6, 2017, we entered into an Agreement and Plan of Merger (the "Datapipe Merger Agreement") pursuant to which we acquired Datapipe. In addition, the Datapipe Merger Agreement provides that we will be required to issue additional shares of our common stock to an affiliate of ABRY based on the multiple of invested capital ("MOIC") on any “Measurement Date,” as defined in the Datapipe Merger Agreement. The maximum number of shares of common stock issuable will not exceed 10,663,741 shares in the aggregate, subject to adjustment for stock splits, stock dividends, recombinations, reclassifications and similar equitable adjustments

Condensed Financial Information of Registrant (Parent Company Only)

12 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Financial Information of Parent Company Only Disclosure

Condensed Financial Information of Registrant (Parent Company Only)

RACKSPACE TECHNOLOGY, INC. (Parent Company Only)

CONDENSED BALANCE SHEETS


(In millions, except per share data)	December 31, 2019		December 31, 2020
ASSETS
Investment in subsidiaries of Parent	$	898.8	$	1,383.7
Total assets	$	898.8	$	1,383.7
LIABILITIES AND STOCKHOLDERS' EQUITY
Stockholders' equity:
Preferred stock, $0.01 par value per share: 5.0 shares authorized; no shares issued or outstanding	—		—
Common stock, $0.01 par value per share: 1,495.0 shares authorized; 165.4 and 201.8 shares issued and outstanding, respectively	1.6		2.0
Additional paid-in capital	1,602.7		2,363.6
Accumulated other comprehensive income (loss)	12.0		(18.6)
Accumulated deficit	(717.5)		(963.3)
Total stockholders' equity	898.8		1,383.7
Total liabilities and stockholders' equity	$	898.8	$	1,383.7

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

RACKSPACE TECHNOLOGY, INC. (Parent Company Only)

CONDENSED STATEMENTS OF COMPREHENSIVE LOSS


	Year Ended December 31,
(In millions, except per share data)	2018		2019		2020
Equity in net losses in Parent's subsidiaries	$	(470.6)	$	(102.3)	$	(245.8)
Net loss and total comprehensive loss	$	(470.6)	$	(102.3)	$	(245.8)
Net loss per share
Basic and diluted	$	(2.85)	$	(0.62)	$	(1.37)
Weighted average number of shares outstanding:
Basic and diluted	165.2		165.3		179.6

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

A condensed statement of cash flows has not been presented as Rackspace Technology, Inc. did not have any cash as of, or at any point in time during, the years ended December 31, 2018, 2019 and 2020.

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

Basis of Presentation

These condensed parent company-only financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X, as the restricted net assets of the subsidiaries of Rackspace Technology, Inc. (“Parent”) (as defined in Rule 4-08(e)(3) of Regulation S-X) exceed 25% of the consolidated net assets of the Parent. The ability of Parent’s operating subsidiaries to pay dividends may be restricted due to the terms of the subsidiaries’ First Lien Credit Agreement and the indenture governing the 5.375% Senior Notes, as described in Note 7, “Debt” to the audited consolidated financial statements.

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

Commitment and Contingencies

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Purchase Commitments

Non-cancelable purchase commitments primarily consist of commitments for certain software licenses, hardware purchases, third party infrastructure purchases, and costs associated with our data centers, such as bandwidth and electricity. The agreements provide for either penalties for early termination or may require minimum commitments for the remaining term. The minimum commitments for all of these agreements, as of December 31, 2020, are approximated as follows:


(In millions)	Amount
Year ending:
2021	$	260.5
2022	259.3
2023	216.2
2024	140.5
2025	68.3
Thereafter	108.4
Total	$	1,053.2

We also have purchase orders and construction contracts primarily related to data center equipment and facility build-outs. We generally have the right to cancel these open purchase orders prior to delivery or terminate the contracts without cause.

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.

Indemnifications

As permitted under Delaware law, we have agreements whereby we indemnify our officers and directors for certain events or occurrences while the officer or director is, or was, serving at our request in such capacity. In addition, from time to time we may enter into indemnification agreements with certain of our employees so that such employees will agree to serve as directors or officers of our foreign subsidiaries. The term of the indemnification period is for the officer’s or director’s lifetime. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, we have a director and officer insurance policy that limits our exposure and enables us to recover a portion of any future amounts paid. As a result of the insurance policy coverage, we believe the estimated fair value of these indemnification agreements is minimal. We had no material liabilities recorded for these agreements as of December 31, 2019 or 2020.

In connection with the Rackspace Acquisition, an affiliate of Apollo and Searchlight Capital Partners L.P ("Searchlight") (the "Affiliated Service Providers") each entered into a management consulting agreement with Rackspace Technology, Inc. (the "Apollo/Searchlight Management Consulting Agreement") relating to the provision of certain management consulting and advisory services following the consummation of the Rackspace Acquisition. In addition, on November 3, 2016, an affiliate of Apollo entered into a transaction fee agreement (the "Transaction Fee Agreement") with Rackspace Technology, Inc. relating to the provision of certain preparation services in support of the Rackspace Acquisition.

On November 15, 2017, in connection with the Datapipe acquisition, ABRY Partners, LLC and ABRY Partners II, LLC (collectively, "ABRY") entered into a management consulting agreement (the "ABRY Management Consulting Agreement") with Rackspace Technology, Inc. relating to the provision of certain management consulting and advisory services.

Under the terms of the Transaction Fee Agreement, the Apollo/Searchlight Management Consulting Agreement and the ABRY Management Consulting Agreement, the company has obligations to indemnify affiliates and representatives of Apollo, Searchlight and ABRY, as applicable, for any losses or liabilities that they may incur as a result of their provision of services under those agreements (unless the losses or liabilities have resulted from the willful misconduct of the person seeking indemnification). We had no liabilities recorded for these agreements as of December 31, 2019 or 2020.

On July 24, 2020, we executed termination letters with each of the parties to the Apollo/Searchlight Management Consulting Agreement, the Transaction Fee Agreement and the ABRY Management Consulting Agreement, whereby all such agreements terminated effective as of the pricing of the IPO on August 4, 2020.

Additionally, in the normal course of business, we indemnify certain parties, including customers, vendors and lessors, with respect to certain matters. We have agreed to hold certain parties harmless against losses arising from a breach of representations or covenants or out of intellectual property infringement or other claims made against certain parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. We had no material liabilities recorded for these agreements as of December 31, 2019 or 2020.

Derivatives

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Interest Rate Swaps

In December 2016, we entered into seven floating-to-fixed interest rate swap agreements to manage our risk from interest rate fluctuations associated with the floating-rate Term Loan Facility. The swap agreements became effective on February 3, 2017 with an aggregate notional amount of $1.50 billion. Two swap agreements matured in 2018, one agreement matured in 2019, and one agreement matured in February 2020. The remaining three swap agreements in effect as of December 31, 2020 have an aggregate notional amount of $1.05 billion and mature over the next two years. On a quarterly basis, we net settle with the counterparty for the difference between the fixed rate specified in each swap agreement, ranging from 1.7625% to 1.9040%, and the variable rate based upon the three-month LIBOR as applied to the notional amount of the swap.

In December 2018, we entered into four additional floating-to-fixed interest rate swap agreements with an aggregate notional amount of $1.35 billion and a maturity date of November 3, 2023. These swap agreements are forward-starting, and as of December 31, 2020, two swap agreements, with an aggregate notional amount of $300 million, were effective. The remaining swap agreements become effective each year thereafter to coincide with the maturity dates of the outstanding December 2016 swap agreements. On a quarterly basis, we net settle with the counterparty for the difference between the fixed rate specified in each swap agreement, ranging from 2.7350% to 2.7490%, and the variable rate based upon the three-month LIBOR as applied to the notional amount of the swap.

Foreign Currency Hedging Contracts

In November 2017, we entered into three forward contracts. Under the terms of these contracts, we sold a total of £120 million at an average rate of 1.34378 British pound sterling to U.S. dollar and received $161.3 million. These contracts settled on November 30, 2018 and we received a final net payment of $7.9 million.

In November 2018, we entered into one foreign currency forward contract. Under the terms of the contract, we sold £75 million at a rate of 1.3002 British pound sterling to U.S. dollar and received $97.5 million. This contract settled on November 29, 2019 and we received a final net payment of $0.8 million.

In November 2019, we entered into two foreign currency net-zero cost collar contracts with an aggregate notional amount of £100 million and a maturity date of November 30, 2020. Under the terms of the contracts, the British pound sterling to U.S. dollar exchange rate floats between 1.2375 and 1.3475. On March 26, 2020, we settled one of these contracts, with an aggregate notional amount of £50 million, and we received a final net payment of $1.9 million and on November 19, 2020, we settled the remaining contract, with an aggregate notional amount of £50 million, and we made a final net payment of $0.2 million.

During 2020, we entered into a series of foreign currency contracts to manage our exposure to movements in the British pound sterling, Euro, and Mexican peso. These contracts had three-month terms and settled at various dates throughout the year, which resulted in the company making aggregate payments of $5.4 million. As of December 31, 2020, there was no notional amount outstanding related to these contracts.

During the fourth quarter of 2020, we entered into two foreign currency forward contracts. Under the terms of these contracts, on November 30, 2021, we will sell a total of £80 million at an average rate of 1.3388 British pound sterling to U.S. dollar and receive $107.1 million.

Fixed Price Power Contracts

We entered into a fixed price power contract for a London data center in September 2015 as part of our price risk management strategy and accounted for it as a derivative that did not qualify for the normal purchases normal sales exception. The contract ended in September 2018 and we executed a new contract with a term of October 2018 through September 2021 that met the normal purchases normal sales exception. Therefore, as of December 31, 2019 and 2020, we do not have any power contracts recorded at fair value on the Consolidated Balance Sheets.

Fair Values of Derivatives on the Consolidated Balance Sheets

The fair values of our derivatives and their location on the Consolidated Balance Sheets as of December 31, 2019 and 2020 were as follows:


		December 31, 2019				December 31, 2020
(In millions)		Assets		Liabilities		Assets		Liabilities
Derivatives not designated as hedging instruments	Location


Interest rate swaps	Other current liabilities	$	—	$	3.5	$	—	$	—
Interest rate swaps	Other non-current liabilities	—		33.1		—		—


Foreign currency contracts	Other current assets	1.4		—		—		—
Foreign currency contracts	Other current liabilities	—		2.9		—		1.7

Total		$	1.4	$	39.5	$	—	$	1.7

Derivatives designated as hedging instruments	Location


Interest rate swaps	Other current liabilities	$	—	$	—	$	—	$	22.6
Interest rate swaps	Other non-current liabilities	—		—		—		64.4
Total		$	—	$	—	$	—	$	87.0

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, 2019						December 31, 2020
(In millions)	Gross Amounts on Balance Sheet		Effect of Counter-Party Netting		Net Amounts		Gross Amounts on Balance Sheet		Effect of Counter-Party Netting		Net Amounts
Assets

Foreign currency contracts	$	1.4	$	(1.4)	$	—	$	—	$	—	$	—
Total	$	1.4	$	(1.4)	$	—	$	—	$	—	$	—

Liabilities
Interest rate swaps	$	36.6	$	—	$	36.6	$	87.0	$	—	$	87.0
Foreign currency contracts	2.9		(1.4)		1.5		1.7		—		1.7
Total	$	39.5	$	(1.4)	$	38.1	$	88.7	$	—	$	88.7

Effect of Derivatives on the Consolidated Statements of Comprehensive Loss

The effect of our derivatives and their location on the Consolidated Statements of Comprehensive Loss for the years ended December 31, 2018, 2019 and 2020 was as follows:


		Year Ended December 31,
(In millions)		2018		2019		2020
Derivatives not designated as hedging instruments	Location
Interest rate swaps	Interest expense	$	1.8	$	(51.6)	$	(3.2)
Power contracts	Cost of revenue	(0.5)		—		—
Foreign currency contracts	Other income (expense), net	11.2		(1.6)		(3.8)

Derivatives designated as hedging instruments	Location
Interest rate swaps	Interest expense	$	—	$	—	$	(11.0)

Interest expense was $281.1 million, $329.9 million and $268.4 million for the years ended December 31, 2018, 2019 and 2020, respectively. As of December 31, 2020, the amount of cash flow hedge losses included within "Accumulated other comprehensive income (loss)" that is expected to be reclassified as an increase to "Interest expense" over the next 12 months is approximately $19.6 million. See Note 17, "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 December 31, 2020, our interest rate swap agreements with an aggregate fair value of $87.0 million were in a net liability position.

Consolidated Statements of Comprehensive Loss - USD ($) shares in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Statement of Comprehensive Income [Abstract]
Revenue	$ 2,707,100,000	$ 2,438,100,000	$ 2,452,800,000
Cost of revenue	(1,722,700,000)	(1,426,900,000)	(1,445,700,000)
Gross profit	984,400,000	1,011,200,000	1,007,100,000
Selling, general and administrative expenses	(959,700,000)	(911,700,000)	(949,300,000)
Impairment of goodwill	0	0	(295,000,000.0)
Gain on sale	0	2,100,000	0
Income (loss) from operations	24,700,000	101,600,000	(237,200,000)
Other income (expense):
Interest expense	(268,400,000)	(329,900,000)	(281,100,000)
Gain on investments, net	700,000	99,500,000	4,600,000
Gain (loss) on extinguishment of debt	(71,500,000)	9,800,000	500,000
Other income (expense), net	2,500,000	(3,300,000)	12,700,000
Total other income (expense)	(336,700,000)	(223,900,000)	(263,300,000)
Loss before income taxes	(312,000,000.0)	(122,300,000)	(500,500,000)
Benefit for income taxes	66,200,000	20,000,000.0	29,900,000
Net loss	(245,800,000)	(102,300,000)	(470,600,000)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments	8,800,000	12,000,000.0	(17,800,000)
Unrealized loss on derivative contracts	(47,600,000)	0	0
Amount reclassified from accumulated other comprehensive income (loss) to earnings	8,200,000	0	0
Other comprehensive income (loss)	(30,600,000)	12,000,000.0	(17,800,000)
Comprehensive loss	$ (276,400,000)	$ (90,300,000)	$ (488,400,000)
Net loss per share:
Basic and diluted (in dollars per share)	$ (1.37)	$ (0.62)	$ (2.85)
Weighted average number of shares outstanding:
Basic and diluted (in shares)	179.6	165.3	165.2

Customer Contracts - Remaining Performance Obligations (Details) $ in Millions	Dec. 31, 2020 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 922.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation expected to be recognized, percentage	60.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period

Leases - Supplemental Information (Details)	Dec. 31, 2020	Dec. 31, 2019
Weighted Average Remaining Lease Term [Abstract]
Operating leases	4 years	8 years
Finance leases	14 years	14 years
Weighted Average Discount Rate [Abstract]
Operating leases	9.00%	11.50%
Finance leases	7.20%	9.40%

Debt - Maturities (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
2021	$ 43.4
2022	79.6
2023	2,737.6
2024	0.0
2025	0.0
Thereafter	550.0
Total debt	$ 3,410.6	$ 3,944.8

Taxes

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Taxes

The benefit for income taxes consisted of the following:


	Year Ended December 31,
(In millions)	2018		2019		2020
Federal	$	(6.0)	$	5.1	$	(4.1)
Foreign	15.6		12.1		9.6
State	(16.8)		3.5		1.9
Total current	(7.2)		20.7		7.4
Deferred:
Federal	(22.5)		(32.4)		(58.6)
Foreign	(3.4)		2.0		(6.0)
State	3.2		(10.3)		(9.0)
Total deferred	(22.7)		(40.7)		(73.6)
Total benefit for income taxes	$	(29.9)	$	(20.0)	$	(66.2)

Loss before income taxes from U.S. and foreign operations were as follows:


	Year Ended December 31,
(In millions)	2018		2019		2020
U.S.	$	(515.5)	$	(143.2)	$	(311.1)
Foreign	15.0		20.9		(0.9)
Total loss before income taxes	$	(500.5)	$	(122.3)	$	(312.0)

A reconciliation of the statutory federal tax rate to the effective tax rate is as follows:


	Year Ended December 31,
	2018		2019		2020
Statutory federal tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal benefit	2.2	%	6.1	%	2.4	%
Tax rate differentials for international jurisdictions	(2.7)	%	(2.7)	%	(2.5)	%
Research and development credit	0.1	%	2.4	%	2.9	%
U.S. Tax Reform	(1.9)	%	—	%	—	%
Tax impact of goodwill impairment	(12.3)	%	—	%	—	%
Effects of other enacted tax law and rate changes	—	%	(3.9)	%	(0.4)	%
Valuation allowance	(0.3)	%	(2.0)	%	(0.5)	%
Share-based compensation	—	%	(2.1)	%	(0.3)	%
Nondeductible compensation	—	%	—	%	(2.2)	%
Other, net	(0.1)	%	(2.4)	%	0.8	%
Effective tax rate	6.0	%	16.4	%	21.2	%

Deferred Taxes

Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes using the enacted tax rates in effect for the year in which the differences are expected to be reversed. Significant components of our deferred tax assets and liabilities are as follows:


(In millions)	December 31, 2019		December 31, 2020
Deferred tax assets:
Share-based compensation	$	10.9	$	15.6
Accruals not currently deductible	20.7		21.3
Interest rate swaps	9.3		22.2
Finance lease liabilities	10.1		67.7
Net operating loss carryforwards	51.7		113.3
Foreign tax credit	34.0		33.5
Research and development credits	23.2		30.6
Depreciation and amortization	9.5		7.8
Disallowed interest carryforward	40.2		5.4
Operating lease liabilities	74.8		37.9
Other	12.1		17.7
Total gross deferred tax assets	296.5		373.0
Valuation allowance	(53.3)		(54.4)
Total net deferred tax assets	243.2		318.6
Deferred tax liabilities:
Depreciation and amortization	452.0		484.5
Prepaids	7.3		1.3
Finance lease liabilities	7.0		4.4

Capitalized costs	12.7		13.9
Unremitted foreign earnings	0.1		—
Debt related	9.9		7.4
Operating right-of-use assets	70.8		36.2
Other	1.1		3.2
Total gross deferred tax liabilities	560.9		550.9
Net deferred tax liabilities	$	317.7	$	232.3

As of December 31, 2020, we have $383.1 million of federal net operating loss carryforwards, $140.8 million of which expire at various dates through 2036, and $242.3 million of which have an indefinite carryforward period. Additionally, we have $68.2 million of federal tax credit carryforwards expiring at various dates through 2040. We have $117.2 million of foreign net operating losses, $7.8 million of which have carryforward periods ranging from 5 to 20 years, and $109.4 million of which have an indefinite carryforward period. Certain federal and foreign net operating loss carryforwards are subject to various limitations under Section 382 of the Internal Revenue Code and the applicable statutory foreign tax laws. We have disallowed interest expense carryforwards in the U.S. of $6.7 million that can be carried forward indefinitely.

We’ve recorded a valuation allowance with respect to certain of our deferred tax assets relating primarily to operating losses in certain U.S. state and foreign jurisdictions and federal foreign tax credits that we believe are not likely to be realized. For the rest of the deferred tax assets, valuation allowances were not deemed necessary based upon the determination that future profits are anticipated to utilize deferred tax assets prior to the expiration of any applicable carryforward periods.

The effective tax rate for the year ended December 31, 2018 was primarily impacted by new provisions of the Tax Cuts and Jobs Act (the “Act”) for foreign earnings, specifically global intangible low-taxed income (“GILTI”), as well as the tax impact associated with a goodwill impairment. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations and we have elected to treat any GILTI inclusions as a period cost. There was also an amount recorded in the fourth quarter of 2018 as we completed our accounting for the Act. We had initially recorded a provisional income tax benefit of $196.8 million for the year ended December 31, 2017, which was included within “Benefit for income taxes” in the Consolidated Statements of Comprehensive Loss. Our final income tax benefit related to the Act was a net $186.3 million.

The effective tax rate for the year ended December 31, 2019 was impacted by the current year GILTI inclusion, the impact of changes in income tax rates, changes in valuation allowances, R&D credits, changes to income tax reserves and other permanently nondeductible items. The effective tax rate for the year ended December 31, 2020 was primarily impacted by deductions disallowed by Section 162(m) of the Internal Revenue Code, the impact of changes in income tax rates, changes in valuation allowances, R&D credits, changes to income tax reserves and other permanently nondeductible items.

We do not permanently reinvest our foreign earnings due to the debt service requirements of our capital structure. Due to historic, internal tax restructurings, we have effectively recognized any tax impact of the repatriation of foreign earnings. Thus, as of December 31, 2020, there is no deferred tax liability for undistributed foreign earnings.

Uncertain Tax Positions

We file income tax returns in each jurisdiction in which we operate, both domestically and internationally. Due to the complexity involved with certain tax matters, we have considered all relevant facts and circumstances for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. We believe that there are no other jurisdictions in which the outcome of uncertain tax matters is likely to be material to our results of operations, financial position or cash flows. We further believe that we have made adequate provision for all income tax uncertainties.

A rollforward of unrecognized tax benefits, excluding accrued penalties and interest, for the years ended December 31, 2018, 2019 and 2020 is as follows:


	Year Ended December 31,
(In millions)	2018		2019		2020
Balance, beginning of period	$	67.2	$	47.0	$	53.2
Additions based on tax positions related to the current year	2.7		4.1		4.9

Additions for tax positions of prior years	3.3		11.7		11.1
Reduction for statute expiration	(17.9)		(2.7)		(2.4)
Reductions for tax positions of prior years	(3.9)		(6.2)		(15.8)
Settlements	(4.4)		(0.7)		—
Balance, end of period (1)	$	47.0	$	53.2	$	51.0

(1) Included within non-current liabilities in the Consolidated Balance Sheets, except for $0.6 million of which is included in current liabilities as of December 31, 2020

Of the total amount of unrecognized tax benefits as of December 31, 2018, 2019 and 2020, $36.0 million, $47.4 million and $42.3 million, respectively, if recognized, would favorably impact our effective tax rate. We do not expect the amount of unrecognized tax benefits disclosed above to change significantly over the next 12 months.

We recognize interest expense and penalties related to income tax matters within “Benefit for income taxes” on our Consolidated Statements of Comprehensive Loss. Accrued interest and penalties as of December 31, 2018, 2019 and 2020 were zero, $2.1 million and $2.4 million, respectively.

We are subject to U.S. federal income tax and various state, local, and international income taxes in numerous jurisdictions. Our domestic and international tax liabilities are subject to the allocation of revenue and expenses in different jurisdictions and the timing of recognizing revenue and expenses. As such, our effective tax rate is impacted by the geographical distribution of income and mix of profits in the various jurisdictions. Additionally, the amount of income taxes paid is subject to our interpretation of applicable tax laws in the jurisdictions in which we file.

We currently file income tax returns in the U.S. and all foreign jurisdictions in which we have entities, which are periodically under audit by federal, state, and foreign tax authorities. These audits can involve complex matters that may require an extended period of time for resolution. We remain subject to U.S. federal and state income tax examinations for the tax years 2009 through 2020 and in the foreign jurisdictions in which we operate for varying periods from 2009 through 2020. In December 2020, we concluded an Internal Revenue Service federal tax audit for the pre-Rackspace Acquisition period ended November 2, 2016, with respect to certain matters, but the statute for the period remains open until September 2021. We currently have income tax examinations open in Texas for tax years 2014 through 2017, Pennsylvania for 2018 and New York City for the year ended November 3, 2016. Additionally, we are currently under tax audit in India for the fiscal year ended March 31, 2016.

Although the outcome of open tax audits is uncertain, in management’s opinion, adequate provisions for income taxes have been made. If actual outcomes differ materially from these estimates, they could have a material impact on our financial condition and results of operations. Differences between actual results and assumptions or changes in assumptions in future periods are recorded in the period they become known. To the extent additional information becomes available prior to resolution, such accruals are adjusted to reflect probable outcomes.

Other

On July 27, 2015, the U.S. Tax Court ("Tax Court") issued an opinion in Altera Corp. ("Altera") v. Commissioner ("Tax Court Opinion"), which concluded that related parties in a cost sharing arrangement are not required to share expenses related to share-based compensation. The Tax Court Opinion was appealed by the Commissioner to the Ninth Circuit Court of Appeals ("Ninth Circuit"). On June 7, 2019, a three-judge panel from the Ninth Circuit issued an opinion that reversed the Tax Court Opinion. On July 22, 2019, the taxpayer requested a rehearing before the full Ninth Circuit, which the Ninth Circuit subsequently denied. On February 10, 2020, Altera submitted a petition for writ of certiorari to the U.S. Supreme Court. On June 22, 2020, the U.S. Supreme Court denied Altera’s petition for writ of certiorari and will not review the Ninth Circuit’s June 7, 2019 decision that upheld the inclusion of share-based compensation in a cost sharing arrangement. Given the U.S. Supreme Court’s denial of the petition for writ of certiorari, we believe it is appropriate to record the financial statement impact of including share-based compensation in historical cost sharing payments discretely in the year ended December 31, 2020 for years prior to 2020. The aggregate income tax impact related to the Altera decision is less than $1.0 million. If, at a future date, Altera secured a favorable ruling from the U.S. Supreme Court, we would re-evaluate the decision to record an income tax benefit at that time.

In a referendum held on May 19, 2019, Switzerland passed the Federal Act on Tax Reform and AHV Financing (“TRAF”), effective January 1, 2020. On October 25, 2019, the Zurich Canton published the amended cantonal tax law in the official cantonal tax law register. The intent of these tax law changes was to replace certain preferential tax regimes with a new set of internationally accepted measures. Based on these Federal/Cantonal events, our position is the enactment of Swiss tax reform for U.S. GAAP purposes occurred during the fourth quarter of 2019, and we recorded a charge of $4.4 million due to a remeasurement of our deferred tax balances for the year ended December 31, 2019. The future rate impacts of these Swiss tax reform law changes are effective starting January 1, 2020. We will continue to monitor Swiss tax reform for any additional interpretative guidance that could result in changes to the amounts we have recorded.

On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was enacted and signed into law in response to the COVID-19 pandemic. The CARES Act contains modifications on the limitation of business interest for tax years beginning in 2019 and 2020. The modifications to Section 163(j) of the Internal Revenue Code increase the allowable business interest deduction for those years from 30% to 50% of adjusted taxable income. This modification significantly increased our allowable interest expense deduction for 2019, resulting in less utilization of prior year net operating losses in that year. Further, we expect to be able to fully deduct interest expense incurred in 2020, including previously disallowed interest expense carrying forward from 2018.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Net Loss Per Share - Narrative (Details) - shares shares in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Earnings Per Share [Abstract]
Anti-dilutive potential common shares excluded from computation of dilutive net income (loss) per share (in shares)	24.3	20.1	21.3

Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Schedule of Estimated Useful Lives, Property Equipment and Software

The following table shows the estimated useful lives used for property, equipment and software:


Classification						Estimated Useful Lives
Computers and equipment						3 to 5 years
Software						3 years
Furniture and fixtures						7 years
Buildings and leasehold improvements						2 to 39 years

Property, equipment and software, net, at December 31, 2019 and 2020 consisted of the following:


(In millions)	December 31, 2019		December 31, 2020
Computers and equipment	$	1,155.9	$	1,191.8
Software	441.6		472.4
Furniture and fixtures	31.3		22.4
Buildings and leasehold improvements	303.7		513.1
Land	32.2		32.6
Property, equipment and software, at cost	1,964.7		2,232.3
Less: Accumulated depreciation	(1,255.2)		(1,366.8)
Work in process	18.3		19.1
Property, equipment and software, net	$	727.8	$	884.6

Net Loss Per Share

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Net Loss Per Share

Basic loss per share is calculated by dividing net loss attributable to common stockholders by the weighted average shares outstanding during the period.

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


	Year Ended December 31,
(In millions, except per share data)	2018		2019		2020
Basic and diluted net loss per share:
Net loss attributable to common stockholders	$	(470.6)	$	(102.3)	$	(245.8)
Weighted average shares outstanding:
Common stock	165.2		165.3		179.6
Number of shares used in per share computations	165.2		165.3		179.6
Net loss per share	$	(2.85)	$	(0.62)	$	(1.37)

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. Since we were in a net loss position for all periods presented, basic net loss per share is the same as diluted net loss per share for all periods as the inclusion of all potential common shares outstanding would have been anti-dilutive. We excluded 21.3 million, 20.1 million and 24.3 million potential common shares from the computation of dilutive loss per share for the years ended December 31, 2018, 2019 and 2020, respectively, because the effect would have been anti-dilutive.

Segment Reporting - Reconciliation of Revenue and Gross Profits from Segments to Consolidated (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	$ 2,707.1	$ 2,438.1	$ 2,452.8
Gross profit	984.4	1,011.2	1,007.1
Share-based compensation expense	(74.5)	(30.2)	(20.0)
Other compensation expense	(5.9)	(2.8)	(7.3)
Purchase accounting impact on revenue	0.0	0.2	(1.2)
Purchase accounting impact on expense	(5.9)	(9.6)	(6.9)
Restructuring and transformation expenses	(15.3)	(10.3)	(2.3)
Cost of revenue
Segment Reporting, Revenue Reconciling Item [Line Items]
Share-based compensation expense	(14.5)	(5.7)	(4.1)
Multicloud Services
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	2,141.5	1,832.6	1,803.4
Gross profit	810.2	774.7	736.6
Apps & Cross Platform
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	336.6	319.2	290.0
Gross profit	115.5	118.7	107.3
OpenStack Public Cloud
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue	229.0	286.3	359.4
Gross profit	$ 100.3	$ 146.0	$ 185.0

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2020

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 during the years ended December 31, 2019 and 2020:


(In millions)	Multicloud Services		Apps & Cross Platform		OpenStack Public Cloud		Total Consolidated
Balance as of December 31, 2018	$	2,101.1	$	322.0	$	51.6	$	2,474.7
Onica acquisition	265.3		—		—		265.3
Foreign currency translation	5.2		0.2		0.4		5.8
Balance as of December 31, 2019	2,371.6		322.2		52.0		2,745.8
Bright Skies acquisition	8.4		—		—		8.4
Onica measurement period adjustments	(0.5)		—		—		(0.5)
Foreign currency translation	6.5		0.4		0.5		7.4
Balance as of December 31, 2020	$	2,386.0	$	322.6	$	52.5	$	2,761.1

Gross goodwill	$	2,681.0	$	322.6	$	52.5	$	3,056.1
Less: Accumulated impairment charges	(295.0)		—		—		(295.0)
Goodwill, net as of December 31, 2020	$	2,386.0	$	322.6	$	52.5	$	2,761.1

Management exercised significant judgment related to the determination of the fair value of each reporting unit. The fair value of each reporting unit was estimated using the discounted cash flow method. The discounted cash flow methodology requires significant judgment, including estimation of future revenue and projected margins, which are dependent on internal forecasts, estimation of the terminal growth rates and capital spending, and determination of discount rates. Changes in these estimates and assumptions could materially affect the fair value of the reporting unit, potentially resulting in an impairment charge.

The results of our goodwill impairment test for the years ended December 31, 2019 and 2020 did not indicate any impairments of goodwill.

The following tables provide information regarding our intangible assets other than goodwill:


	December 31, 2019
(In millions)	Gross carrying amount		Accumulated amortization		Net carrying amount
Customer relationships	$	1,983.7	$	(459.9)	$	1,523.8
Property tax abatement	16.0		(5.6)		10.4
Other	43.8		(10.6)		33.2
Total definite-lived intangible assets	2,043.5		(476.1)		1,567.4
Trade name (indefinite-lived)	250.0		—		250.0
Total intangible assets other than goodwill	$	2,293.5	$	(476.1)	$	1,817.4


	December 31, 2020
(In millions)	Gross carrying amount		Accumulated amortization		Net carrying amount
Customer relationships	$	1,986.2	$	(624.0)	$	1,362.2
Property tax abatement	16.0		(7.4)		8.6
Other	47.7		(22.2)		25.5
Total definite-lived intangible assets	2,049.9		(653.6)		1,396.3
Trade name (indefinite-lived)	250.0		—		250.0
Total intangible assets other than goodwill	$	2,299.9	$	(653.6)	$	1,646.3

Amortization expense related to intangibles was $164.2 million, $167.5 million and $176.3 million for the years ended December 31, 2018, 2019 and 2020, respectively.

As of December 31, 2020, amortization of intangible assets for the next five years and thereafter is expected to be as follows:


(In millions)	Intangible Assets
Year ending:
2021	$	173.6
2022	171.8
2023	167.6
2024	159.6
2025	151.9
Thereafter	571.8
Total	$	1,396.3

Net Loss Per Share - Computation of Basic and Diluted Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Net loss per share:
Net loss attributable to common stockholders	$ (245.8)	$ (102.3)
Weighted average shares outstanding, basic (in shares)	179.6	165.3	165.2
Number of shares used in per share computations (in shares)	179.6	165.3	165.2
Net loss per share (in usd per share)	$ (1.37)	$ (0.62)	$ (2.85)

- Definition

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

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+ Details

Taxes - Statutory Federal Tax Rate Reconciliation (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Statutory federal tax rate	21.00%	21.00%	21.00%
State taxes, net of federal benefit	2.40%	6.10%	2.20%
Tax rate differentials for international jurisdictions	(2.50%)	(2.70%)	(2.70%)
Research and development credit	2.90%	2.40%	0.10%
U.S. Tax Reform	0	0	(0.019)
Tax impact of goodwill impairment	0.00%	0.00%	(12.30%)
Effects of other enacted tax law and rate changes	(0.40%)	(3.90%)	0.00%
Valuation allowance	(0.50%)	(2.00%)	(0.30%)
Share-based compensation	(0.30%)	(2.10%)	0.00%
Nondeductible compensation	(2.20%)	0.00%	0.00%
Other, net	0.80%	(2.40%)	(0.10%)
Effective tax rate	21.20%	16.40%	6.00%

Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies - Cash, Cash Equivalents, Restricted Cash and Property, Equipment and Software and Definite-Lived Intangible Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Restricted cash	$ 3.4	$ 3.3
Interest costs capitalized	$ 0.8	$ 1.2	$ 1.0

Customer Contracts (Tables)

12 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

Schedule of Balances Related to Customer Contracts

The following table presents the balances related to customer contracts as of December 31, 2019 and 2020:


(In millions)	Consolidated Balance Sheets Account	December 31, 2019		December 31, 2020
Accounts receivable, net	Accounts receivable, net (1)	$	350.3	$	483.0
Current portion of contract assets	Other current assets	7.8		12.2
Non-current portion of contract assets	Other non-current assets	7.2		13.9
Current portion of deferred revenue	Deferred revenue	66.6		76.7
Non-current portion of deferred revenue	Other non-current liabilities	14.2		14.2

(1) Allowance for doubtful accounts and accrued customer credits was $17.0 million and $28.3 million as of December 31, 2019 and 2020, respectively.

Schedule of Changes in Allowance for Doubtful Accounts

The following table sets forth the changes in the allowance for doubtful accounts during the years ended December 31, 2018, 2019 and 2020:


(In millions)	Beginning Balance		Additions (1)		Write-offs of Accounts Receivables, Net of Recoveries		Ending Balance
For the years ending December 31,
2018	$	5.6	$	12.7	$	(10.8)	$	7.5
2019	7.5		13.3		(11.3)		9.5
2020	9.5		20.1		(13.4)		16.2

(1) Additions to the allowance for doubtful accounts are charged to bad debt within selling, general and administrative expense.

Schedule of Capitalized Contract Cost

Amortization of capitalized sales commissions and implementation costs for the years ended December 31, 2018, 2019 and 2020 was as follows:


	Year Ended December 31,
(In millions)	2018		2019		2020
Amortization of capitalized sales commissions	$	27.2	$	40.9	$	44.2
Amortization of capitalized implementation costs	9.5		14.8		17.4

Related Party Transactions - Narrative (Details) - USD ($)			12 Months Ended
	Dec. 01, 2020	Aug. 07, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Nov. 03, 2016
Related Party Transaction [Line Items]
Principal balance			$ 3,410,600,000	$ 3,944,800,000
Term Loan Facility \| Senior Facilities
Related Party Transaction [Line Items]
Principal balance			2,795,600,000	2,824,600,000		$ 2,000,000,000.0
Senior notes \| 5.375% Senior Notes due 2028
Related Party Transaction [Line Items]
Principal balance			550,000,000.0
Stated interest rate	5.375%
Apollo Global Securities, LLC \| IPO
Related Party Transaction [Line Items]
Transaction amount		$ 2,700,000
Senior Notes Received \| Apollo Global Securities, LLC \| 5.375% Senior Notes due 2028
Related Party Transaction [Line Items]
Transaction amount	$ 600,000
Affiliated Entity \| Affiliates of ABRY \| Term Loan Facility \| Senior Facilities
Related Party Transaction [Line Items]
Principal balance			$ 48,700,000
Percentage of debt due to related party			1.70%
Affiliated Entity \| Apollo, Searchlight and ABRY \| RelationEdge, LLC
Related Party Transaction [Line Items]
Related party consulting fees					$ 700,000
Affiliated Entity \| Apollo, Searchlight and ABRY \| Onica
Related Party Transaction [Line Items]
Related party consulting fees				3,300,000
Affiliated Entity \| Consulting Fees \| Apollo and Searchlight
Related Party Transaction [Line Items]
Consulting fee, percentage of EBITDA			1.50%
Affiliated Entity \| Consulting Fees \| ABRY
Related Party Transaction [Line Items]
Consulting fee, percentage of EBITDA			1.50%
Related party consulting fees			$ 8,400,000	$ 12,900,000	$ 15,200,000
Affiliated Entity \| Minimum Annual Consulting Fees \| Apollo and Searchlight
Related Party Transaction [Line Items]
Transaction amount			$ 10,000,000.0

Customer Contracts - Schedule of Amortization of Capitalized Contract Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Amortization of capitalized sales commissions
Capitalized Contract Cost [Line Items]
Capitalized contract cost, amortization	$ 44.2	$ 40.9	$ 27.2
Amortization of capitalized implementation costs
Capitalized Contract Cost [Line Items]
Capitalized contract cost, amortization	$ 17.4	$ 14.8	$ 9.5

Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Principles of Consolidation

Basis of Presentation

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP")

Use of Estimates

Cash, Cash Equivalents and Restricted Cash

Property, Equipment and Software

The following table shows the estimated useful lives used for property, equipment and software:


Classification						Estimated Useful Lives
Computers and equipment						3 to 5 years
Software						3 years
Furniture and fixtures						7 years
Buildings and leasehold improvements						2 to 39 years

The cost of assets and related accumulated depreciation and amortization are written off upon retirement or disposal and any resulting gain or loss is credited or charged to income or expense.

Definite-Lived Intangible Assets

Impairment

Goodwill and Indefinite-Lived Intangible Assets

Business Combinations

Investments

Leases, Lessee

Leases, Lessor

We are deemed a lessor in certain hosting arrangements where our equipment is located in a customer’s data center. We account for these arrangements as either sales-type or direct finance leases.

Debt Issuance Costs

Financing Obligations

Revenue Recognition

Revenue is reported net of customer credits and sales and use tax.

Contract Balances

Cost Incurred to Obtain and Fulfill a Contract

Cost of Revenue

Selling, General and Administrative Expenses

Share-Based Compensation

Income Taxes

Fair Value Measurements

Level 1 – Observable inputs such as quoted prices in active markets for identical assets or liabilities;

The fair values of our long-term debt instruments are measured using Level 2 inputs. See Note 7, "Debt" for more information on the inputs used to fair value our long-term debt instruments.

The fair values of our reporting units and indefinite-lived intangible assets are measured using Level 3 inputs.

Foreign Currency

Transaction gains or losses in currencies other than the functional currency are included as a component of "Other income (expense), net" in the Consolidated Statements of Comprehensive Loss.

Derivative Instruments

Interest Rate Swaps

Foreign Currency Hedging Contracts

Fixed Price Power Contracts

Reclassifications

Recently Adopted Accounting Pronouncements

Financial Instruments-Credit Losses

Derivatives and Hedging-Targeted Improvements to Accounting for Hedging Activities

Fair Value Measurement Disclosures

Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement

Reference Rate Reform

Not Yet Adopted

Simplifying the Accounting for Income Taxes

Earnings Per Share

Basic loss per share is calculated by dividing net loss attributable to common stockholders by the weighted average shares outstanding during the period.

Acquisitions - Narrative (Details) - USD ($) $ in Millions			12 Months Ended			14 Months Ended
Acquisitions - Narrative (Details) - USD ($) $ in Millions	Nov. 15, 2019	May 14, 2018	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2020	Nov. 05, 2020
Business Acquisition [Line Items]
Net purchase price			$ 9.5	$ 316.1	$ 65.3
Measurement Period Adjustments			0.3			$ (0.3)
Decrease to goodwill			0.5
RelationEdge, LLC
Business Acquisition [Line Items]
Percentage of business acquired		100.00%
Total consideration		$ 65.7
Cash acquired from acquisition		0.4
Net purchase price		65.3
Intangible assets		$ 22.1
Weighted average amortization period		4 years 7 months 6 days
Acquisition costs					$ 1.6
Onica
Business Acquisition [Line Items]
Percentage of business acquired	100.00%
Total consideration	$ 323.4
Cash acquired from acquisition	7.5
Net purchase price	315.9
Intangible assets			61.8			61.8
Acquisition costs				$ 7.7
Goodwill deductible for tax purposes	$ 18.0
Measurement period adjustments, increase (decrease)			(0.2)			(0.2)
Bright Skies
Business Acquisition [Line Items]
Percentage of business acquired							100.00%
Relationship with Salesforce \| RelationEdge, LLC
Business Acquisition [Line Items]
Intangible assets		$ 18.0
Customer relationships \| Onica
Business Acquisition [Line Items]
Intangible assets			$ 41.3			41.3
Weighted average amortization period			7 years
Relationship with AWS \| Onica
Business Acquisition [Line Items]
Intangible assets			$ 17.2			$ 17.2
Weighted average amortization period			4 years

Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment
Beginning balance (in shares) at Dec. 31, 2017			165,000,000.0
Beginning balance at Dec. 31, 2017	$ 1,373.0		$ 1.6	$ 1,554.1	$ 17.8	$ (200.5)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)			200,000
Issuance of common stock	$ 3.2			3.2
Accounting Standards Update	us-gaap:AccountingStandardsUpdate201602Member
Share-based compensation expense	$ 20.0			20.0
Net loss	(470.6)
Other comprehensive income (loss)	(17.8)				(17.8)
Ending balance (in shares) at Dec. 31, 2018			165,200,000
Ending balance at Dec. 31, 2018	907.8	$ 55.9	$ 1.6	1,577.3	0.0	(671.1)	$ 55.9
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options and release of stock awards, net of shares withheld for employee taxes (in shares)			400,000
Exercise of stock options and release of stock awards, net of shares withheld	(1.1)			(1.1)
Repurchase of common stock (in shares)			(200,000)
Repurchase of common stock	(2.2)			(2.2)
Cash settlement of share-based awards	(1.5)			(1.5)
Share-based compensation expense	30.2			30.2
Net loss	(102.3)					(102.3)
Other comprehensive income (loss)	12.0				12.0
Ending balance (in shares) at Dec. 31, 2019			165,400,000
Ending balance at Dec. 31, 2019	898.8		$ 1.6	1,602.7	12.0	(717.5)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)			33,500,000
Issuance of common stock	657.8		$ 0.4	657.4
Exercise of stock options and release of stock awards, net of shares withheld for employee taxes (in shares)			2,500,000
Exercise of stock options and release of stock awards, net of shares withheld	23.4			23.4
Issuance of shares from Employee Stock Purchase Plans (in shares)			400,000
Issuance of shares from Employee Stock Purchase Plans	5.6			5.6
Share-based compensation expense	74.5			74.5
Net loss	(245.8)
Other comprehensive income (loss)	(30.6)				(30.6)
Ending balance (in shares) at Dec. 31, 2020			201,800,000
Ending balance at Dec. 31, 2020	$ 1,383.7		$ 2.0	$ 2,363.6	$ (18.6)	$ (963.3)

Derivatives (Tables)

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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 Consolidated Balance Sheets as of December 31, 2019 and 2020 were as follows:


		December 31, 2019				December 31, 2020
(In millions)		Assets		Liabilities		Assets		Liabilities
Derivatives not designated as hedging instruments	Location


Interest rate swaps	Other current liabilities	$	—	$	3.5	$	—	$	—
Interest rate swaps	Other non-current liabilities	—		33.1		—		—


Foreign currency contracts	Other current assets	1.4		—		—		—
Foreign currency contracts	Other current liabilities	—		2.9		—		1.7

Total		$	1.4	$	39.5	$	—	$	1.7

Derivatives designated as hedging instruments	Location


Interest rate swaps	Other current liabilities	$	—	$	—	$	—	$	22.6
Interest rate swaps	Other non-current liabilities	—		—		—		64.4
Total		$	—	$	—	$	—	$	87.0

Schedule Offsetting Assets Under Master Netting Arrangements


	December 31, 2019						December 31, 2020
(In millions)	Gross Amounts on Balance Sheet		Effect of Counter-Party Netting		Net Amounts		Gross Amounts on Balance Sheet		Effect of Counter-Party Netting		Net Amounts
Assets

Foreign currency contracts	$	1.4	$	(1.4)	$	—	$	—	$	—	$	—
Total	$	1.4	$	(1.4)	$	—	$	—	$	—	$	—

Liabilities
Interest rate swaps	$	36.6	$	—	$	36.6	$	87.0	$	—	$	87.0
Foreign currency contracts	2.9		(1.4)		1.5		1.7		—		1.7
Total	$	39.5	$	(1.4)	$	38.1	$	88.7	$	—	$	88.7

Schedule Offsetting Liabilities Under Master Netting Arrangements


	December 31, 2019						December 31, 2020
(In millions)	Gross Amounts on Balance Sheet		Effect of Counter-Party Netting		Net Amounts		Gross Amounts on Balance Sheet		Effect of Counter-Party Netting		Net Amounts
Assets

Foreign currency contracts	$	1.4	$	(1.4)	$	—	$	—	$	—	$	—
Total	$	1.4	$	(1.4)	$	—	$	—	$	—	$	—

Liabilities
Interest rate swaps	$	36.6	$	—	$	36.6	$	87.0	$	—	$	87.0
Foreign currency contracts	2.9		(1.4)		1.5		1.7		—		1.7
Total	$	39.5	$	(1.4)	$	38.1	$	88.7	$	—	$	88.7

Schedule of Derivative Instruments, Effect on Comprehensive Loss

The effect of our derivatives and their location on the Consolidated Statements of Comprehensive Loss for the years ended December 31, 2018, 2019 and 2020 was as follows:


		Year Ended December 31,
(In millions)		2018		2019		2020
Derivatives not designated as hedging instruments	Location
Interest rate swaps	Interest expense	$	1.8	$	(51.6)	$	(3.2)
Power contracts	Cost of revenue	(0.5)		—		—
Foreign currency contracts	Other income (expense), net	11.2		(1.6)		(3.8)

Derivatives designated as hedging instruments	Location
Interest rate swaps	Interest expense	$	—	$	—	$	(11.0)

Condensed Financial Information of Registrant (Parent Company Only) - Condensed Balance Sheets (Details) - USD ($) $ / shares in Units, $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
ASSETS
Total assets	$ 6,377.8	$ 6,272.4
Liabilities and Shareholders’ Equity
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; 165.4 and 201.8 shares issued and outstanding, respectively	2.0	1.6
Additional paid-in capital	2,363.6	1,602.7
Accumulated other comprehensive income (loss)	(18.6)	12.0
Accumulated deficit	(963.3)	(717.5)
Total stockholders' equity	1,383.7	898.8	$ 907.8	$ 1,373.0
Total liabilities and stockholders' equity	$ 6,377.8	$ 6,272.4
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)	1,495,000,000.0	1,495,000,000.0
Common stock, shares issued (in shares)	201,800,000	165,400,000
Common stock, shares outstanding (in shares)	201,800,000	165,400,000
Parent Company
ASSETS
Investments in Subsidiaries	$ 1,383.7	$ 898.8
Total assets	1,383.7	898.8
Liabilities and Shareholders’ Equity
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; 165.4 and 201.8 shares issued and outstanding, respectively	2.0	1.6
Additional paid-in capital	2,363.6	1,602.7
Accumulated other comprehensive income (loss)	(18.6)	12.0
Accumulated deficit	(963.3)	(717.5)
Total stockholders' equity	1,383.7	898.8
Total liabilities and stockholders' equity	$ 1,383.7	$ 898.8
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)	1,495,000,000.0	1,495,000,000.0
Common stock, shares issued (in shares)	165,400,000	201,800,000
Common stock, shares outstanding (in shares)	165,400,000	201,800,000

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2020

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 during the years ended December 31, 2019 and 2020:


(In millions)	Multicloud Services		Apps & Cross Platform		OpenStack Public Cloud		Total Consolidated
Balance as of December 31, 2018	$	2,101.1	$	322.0	$	51.6	$	2,474.7
Onica acquisition	265.3		—		—		265.3
Foreign currency translation	5.2		0.2		0.4		5.8
Balance as of December 31, 2019	2,371.6		322.2		52.0		2,745.8
Bright Skies acquisition	8.4		—		—		8.4
Onica measurement period adjustments	(0.5)		—		—		(0.5)
Foreign currency translation	6.5		0.4		0.5		7.4
Balance as of December 31, 2020	$	2,386.0	$	322.6	$	52.5	$	2,761.1

Gross goodwill	$	2,681.0	$	322.6	$	52.5	$	3,056.1
Less: Accumulated impairment charges	(295.0)		—		—		(295.0)
Goodwill, net as of December 31, 2020	$	2,386.0	$	322.6	$	52.5	$	2,761.1

Schedule of Finite-Lived Intangible Assets Other Than Goodwill

The following tables provide information regarding our intangible assets other than goodwill:


	December 31, 2019
(In millions)	Gross carrying amount		Accumulated amortization		Net carrying amount
Customer relationships	$	1,983.7	$	(459.9)	$	1,523.8
Property tax abatement	16.0		(5.6)		10.4
Other	43.8		(10.6)		33.2
Total definite-lived intangible assets	2,043.5		(476.1)		1,567.4
Trade name (indefinite-lived)	250.0		—		250.0
Total intangible assets other than goodwill	$	2,293.5	$	(476.1)	$	1,817.4


	December 31, 2020
(In millions)	Gross carrying amount		Accumulated amortization		Net carrying amount
Customer relationships	$	1,986.2	$	(624.0)	$	1,362.2
Property tax abatement	16.0		(7.4)		8.6
Other	47.7		(22.2)		25.5
Total definite-lived intangible assets	2,049.9		(653.6)		1,396.3
Trade name (indefinite-lived)	250.0		—		250.0
Total intangible assets other than goodwill	$	2,299.9	$	(653.6)	$	1,646.3

Schedule of Indefinite-Lived Intangible Assets Other Than Goodwill

The following tables provide information regarding our intangible assets other than goodwill:


	December 31, 2019
(In millions)	Gross carrying amount		Accumulated amortization		Net carrying amount
Customer relationships	$	1,983.7	$	(459.9)	$	1,523.8
Property tax abatement	16.0		(5.6)		10.4
Other	43.8		(10.6)		33.2
Total definite-lived intangible assets	2,043.5		(476.1)		1,567.4
Trade name (indefinite-lived)	250.0		—		250.0
Total intangible assets other than goodwill	$	2,293.5	$	(476.1)	$	1,817.4


	December 31, 2020
(In millions)	Gross carrying amount		Accumulated amortization		Net carrying amount
Customer relationships	$	1,986.2	$	(624.0)	$	1,362.2
Property tax abatement	16.0		(7.4)		8.6
Other	47.7		(22.2)		25.5
Total definite-lived intangible assets	2,049.9		(653.6)		1,396.3
Trade name (indefinite-lived)	250.0		—		250.0
Total intangible assets other than goodwill	$	2,299.9	$	(653.6)	$	1,646.3

Schedule of Future Amortization of Intangible Assets

As of December 31, 2020, amortization of intangible assets for the next five years and thereafter is expected to be as follows:


(In millions)	Intangible Assets
Year ending:
2021	$	173.6
2022	171.8
2023	167.6
2024	159.6
2025	151.9
Thereafter	571.8
Total	$	1,396.3

Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 898.8	$ 907.8	$ 1,373.0
Foreign currency translation adjustments	8.8	12.0	(17.8)
Unrealized loss on derivative contracts	(47.6)	0.0	0.0
Amount reclassified from accumulated comprehensive income (loss) into earnings, net of tax benefit	8.2	0.0	0.0
Ending balance	1,383.7	898.8	907.8
Foreign currency translation adjustment, tax expense (benefit)	1.1	(0.2)	0.1
Unrealized losses on derivative contracts, before reclassification, tax benefit	16.3
Tax benefit, reclassification from AOCI	2.8
Interest expense	268.4	329.9	281.1
Reclassification out of Accumulated Other Comprehensive Income
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Interest expense	16.8
Amortization of off-market swap	5.8
Accumulated Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	12.0	0.0	17.8
Foreign currency translation adjustments	8.8	12.0	(17.8)
Unrealized loss on derivative contracts	0.0
Amount reclassified from accumulated comprehensive income (loss) into earnings, net of tax benefit	0.0
Ending balance	20.8	12.0	0.0
Accumulated Loss on Derivative Contracts
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	0.0	0.0	0.0
Foreign currency translation adjustments	0.0	0.0	0.0
Unrealized loss on derivative contracts	(47.6)
Amount reclassified from accumulated comprehensive income (loss) into earnings, net of tax benefit	8.2
Ending balance	(39.4)	0.0	0.0
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	12.0	0.0	17.8
Ending balance	$ (18.6)	$ 12.0	$ 0.0

Share-Based Compensation, Settlement of Share-Based Awards, and Employee Benefit Plans - Fair Value Assumptions (Details) - Options	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected stock volatility, minimum	55.00%		63.00%
Expected stock volatility, maximum	61.00%		72.00%
Expected stock volatility		58.00%
Expected dividend yield	0.00%	0.00%	0.00%
Risk-free interest rate, minimum	0.38%	1.54%	2.63%
Risk-free interest rate, maximum	1.73%	2.47%	2.92%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life	5 years 6 months	5 years 8 months 12 days	5 years 6 months
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life	6 years 6 months	6 years 6 months	6 years 6 months

Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Reconciliation of Revenue from Segments to Consolidated


	Year Ended December 31,
(In millions)	2018		2019		2020
Revenue by segment:
Multicloud Services	$	1,803.4	$	1,832.6	$	2,141.5
Apps & Cross Platform	290.0		319.2		336.6
OpenStack Public Cloud	359.4		286.3		229.0

Total consolidated revenue	$	2,452.8	$	2,438.1	$	2,707.1

Non-GAAP gross profit by segment:
Multicloud Services	$	736.6	$	774.7	$	810.2
Apps & Cross Platform	107.3		118.7		115.5
OpenStack Public Cloud	185.0		146.0		100.3

Less:
Share-based compensation expense	(4.1)		(5.7)		(14.5)
Other compensation expense (1)	(7.3)		(2.8)		(5.9)
Purchase accounting impact on revenue (2)	(1.2)		0.2		—
Purchase accounting impact on expense (2)	(6.9)		(9.6)		(5.9)
Restructuring and transformation expenses (3)	(2.3)		(10.3)		(15.3)
Total consolidated gross profit	$	1,007.1	$	1,011.2	$	984.4

(2) Adjustment for the impact of purchase accounting from the Rackspace Acquisition on revenue and expenses.

(3) Adjustment for the impact of business transformation and optimization activities, as well as associated severance, facility closure costs and lease termination expenses.

Reconciliation of Gross Profit from Segments to Consolidated


	Year Ended December 31,
(In millions)	2018		2019		2020
Revenue by segment:
Multicloud Services	$	1,803.4	$	1,832.6	$	2,141.5
Apps & Cross Platform	290.0		319.2		336.6
OpenStack Public Cloud	359.4		286.3		229.0

Total consolidated revenue	$	2,452.8	$	2,438.1	$	2,707.1

Non-GAAP gross profit by segment:
Multicloud Services	$	736.6	$	774.7	$	810.2
Apps & Cross Platform	107.3		118.7		115.5
OpenStack Public Cloud	185.0		146.0		100.3

Less:
Share-based compensation expense	(4.1)		(5.7)		(14.5)
Other compensation expense (1)	(7.3)		(2.8)		(5.9)
Purchase accounting impact on revenue (2)	(1.2)		0.2		—
Purchase accounting impact on expense (2)	(6.9)		(9.6)		(5.9)
Restructuring and transformation expenses (3)	(2.3)		(10.3)		(15.3)
Total consolidated gross profit	$	1,007.1	$	1,011.2	$	984.4

(2) Adjustment for the impact of purchase accounting from the Rackspace Acquisition on revenue and expenses.

(3) Adjustment for the impact of business transformation and optimization activities, as well as associated severance, facility closure costs and lease termination expenses.

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas


	Year Ended December 31,
(In millions)	2018		2019		2020
Americas	$	1,785.1	$	1,787.5	$	2,027.8
EMEA	582.7		564.6		585.2
APJ	85.0		86.0		94.1
Total revenue	$	2,452.8	$	2,438.1	$	2,707.1


	Year Ended December 31,
(In millions)	2018		2019		2020
United States	$	1,734.0	$	1,735.3	$	1,948.0
United Kingdom	582.0		564.6		583.6
Other foreign countries (1)	136.8		138.2		175.5
Total revenue	$	2,452.8	$	2,438.1	$	2,707.1

(1) No other foreign country had revenue that exceeded 10% of total consolidated revenue for the years ended December 31, 2018, 2019 and 2020.

The table below presents property, equipment and software, net by country, based on the physical location of the assets, as of December 31, 2019 and 2020:


(In millions)	December 31, 2019		December 31, 2020
United States	$	517.0	$	684.3
United Kingdom	180.0		170.9
Other foreign countries (1)	30.8		29.4
Total property, equipment and software, net	$	727.8	$	884.6

(1) No other foreign country had property, equipment and software, net that exceeded 10% of total consolidated property, equipment and software, net as of December 31, 2019 and 2020.

Commitment and Contingencies - Purchase Commitments (Details) $ in Millions	Dec. 31, 2020 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2021	$ 260.5
2022	259.3
2023	216.2
2024	140.5
2025	68.3
Thereafter	108.4
Total	$ 1,053.2

Divestitures - Narrative (Details) $ in Millions		1 Months Ended	12 Months Ended
Divestitures - Narrative (Details) $ in Millions	Feb. 01, 2017 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2020 USD ($) divestiture	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale			$ 0.0	$ 16.8	$ 0.1
Promissory note receivable, payment period	4 years
Gain on investments, net			0.7	99.5	4.6
Gain on sale			$ 0.0	2.1	0.0
Number of divestitures \| divestiture			0
Mailgun Technologies
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on investments, net					$ 3.8
Mailgun Business \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration from sale of assets	$ 40.2
Proceeds from sale	20.5
Promissory note received, principal amount	20.0
Promissory note fair value, from sale of assets	14.8
Equity interest in net entity, from sale of assets	$ 4.9
Proceeds from collection of promissory note		$ 18.0
Promissory note balance		15.9
Accrued interest on promissory note		$ 1.2
Gain on sale				$ 2.1

Goodwill and Intangible Assets - Intangible Assets Other Than Goodwill (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 2,049.9	$ 2,043.5
Accumulated amortization	(653.6)	(476.1)
Net carrying amount	1,396.3	1,567.4
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Gross carrying amount	2,299.9	2,293.5
Accumulated amortization	(653.6)	(476.1)
Net carrying amount	1,646.3	1,817.4
Trade name (indefinite-lived)
Indefinite-lived Intangible Assets [Line Items]
Trade name (indefinite-lived)	250.0	250.0
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	1,986.2	1,983.7
Accumulated amortization	(624.0)	(459.9)
Net carrying amount	1,362.2	1,523.8
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated amortization	(624.0)	(459.9)
Property tax abatement
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	16.0	16.0
Accumulated amortization	(7.4)	(5.6)
Net carrying amount	8.6	10.4
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated amortization	(7.4)	(5.6)
Other
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	47.7	43.8
Accumulated amortization	(22.2)	(10.6)
Net carrying amount	25.5	33.2
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Accumulated amortization	$ (22.2)	$ (10.6)

Acquisitions - Schedule of Preliminary Purchase Price Allocation (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Nov. 15, 2019	Dec. 31, 2018	May 14, 2018
Business Acquisition [Line Items]
Goodwill, net	$ 2,761.1	$ 2,745.8		$ 2,474.7
RelationEdge, LLC
Business Acquisition [Line Items]
Onica Acquisition Consideration					$ 65.7
Cash and cash equivalents					0.4
Intangible assets					22.1
Liabilities assumed, net of other assets acquired					(1.1)
Net assets acquired					21.4
Goodwill, net					$ 44.3
Onica
Business Acquisition [Line Items]
Onica Acquisition Consideration	323.4		$ 323.6
Cash and cash equivalents	7.5
Intangible assets	61.8
Liabilities assumed, net of other assets acquired	(10.7)		$ (11.0)
Net assets acquired	58.6
Goodwill, net	$ 264.8

Commitment and Contingencies (Tables)

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Long-term Purchase Commitment

The minimum commitments for all of these agreements, as of December 31, 2020, are approximated as follows:


(In millions)	Amount
Year ending:
2021	$	260.5
2022	259.3
2023	216.2
2024	140.5
2025	68.3
Thereafter	108.4
Total	$	1,053.2

Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies - Selling, General and Administrative Expense and Impairment Loss (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Advertising expense	$ 42,500,000	$ 39,900,000	$ 41,900,000
Research and development expense	36,700,000	56,000,000.0	74,700,000
Impairment of goodwill	$ 0	$ 0	$ 295,000,000.0

Property, Equipment, and Software, net - Schedule of Property, Equipment, and Software, net (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property, equipment and software, at cost	$ 2,232.3	$ 1,964.7
Less: Accumulated depreciation	(1,366.8)	(1,255.2)
Property, equipment and software, net	884.6	727.8
Computers and equipment
Property, Plant and Equipment [Line Items]
Property, equipment and software, at cost	1,191.8	1,155.9
Software
Property, Plant and Equipment [Line Items]
Property, equipment and software, at cost	472.4	441.6
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, equipment and software, at cost	22.4	31.3
Buildings and leasehold improvements
Property, Plant and Equipment [Line Items]
Property, equipment and software, at cost	513.1	303.7
Land
Property, Plant and Equipment [Line Items]
Property, equipment and software, at cost	32.6	32.2
Work in process
Property, Plant and Equipment [Line Items]
Work in process	$ 19.1	$ 18.3

Condensed Financial Information of Registrant (Parent Company Only) - Condensed Statements of Comprehensive Loss (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Condensed Statement of Income Captions [Line Items]
Net loss	$ (245.8)	$ (102.3)	$ (470.6)
Net loss per share (in usd per share)	$ (1.37)	$ (0.62)	$ (2.85)
Number of shares used in per share computations (in shares)	179.6	165.3	165.2
Parent Company
Condensed Statement of Income Captions [Line Items]
Net loss	$ (245.8)	$ (102.3)	$ (470.6)
Net loss per share (in usd per share)	$ (1.37)	$ (0.62)	$ (2.85)
Number of shares used in per share computations (in shares)	179.6	165.3	165.2

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Property, Equipment, and Software, net

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Property, Equipment and Software, net

Property, equipment and software, net, at December 31, 2019 and 2020 consisted of the following:


(In millions)	December 31, 2019		December 31, 2020
Computers and equipment	$	1,155.9	$	1,191.8
Software	441.6		472.4
Furniture and fixtures	31.3		22.4
Buildings and leasehold improvements	303.7		513.1
Land	32.2		32.6
Property, equipment and software, at cost	1,964.7		2,232.3
Less: Accumulated depreciation	(1,255.2)		(1,366.8)
Work in process	18.3		19.1
Property, equipment and software, net	$	727.8	$	884.6

Depreciation expense related to property, equipment and software was $445.5 million, $328.5 million and $289.8 million for the years ended December 31, 2018, 2019 and 2020, respectively. Depreciation expense for the year ended December 31, 2018 includes $20.9 million of accelerated depreciation resulting from a revision to the useful life of certain equipment assets.

Included in the balance of property, equipment, and software as of December 31, 2019 and 2020 are assets recorded under finance leases. See Note 8, "Leases" for a discussion of the lease arrangements and the amounts within property, equipment and software as of December 31, 2019 and 2020.

Share-Based Compensation, Settlement of Share-Based Awards, and Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Schedule of Equity Awards Outstanding

The composition of the equity awards outstanding as of December 31, 2019 and 2020 was as follows:


	December 31, 2019	December 31, 2020
(In millions)
Restricted stock	0.6	2.7
Stock options	19.8	18.6
Total outstanding awards	20.4	21.3

Schedule of Stock Option Activity

The following table summarizes the stock option activity for the year ended December 31, 2020:


	Number of Shares (in millions)	Weighted Average Exercise Price		Weighted Average-Remaining Contractual Life	Aggregate Intrinsic Value (in millions)
Outstanding at December 31, 2019	19.8	$	12.24	8.64	$	21.7
Granted	8.2	$	13.11
Exercised	(2.6)	$	10.92
Forfeited	(6.2)	$	12.60
Expired	(0.6)	$	11.96
Outstanding at December 31, 2020	18.6	$	12.69	7.94	$	118.4
Vested and exercisable at December 31, 2020	4.0	$	11.73	6.76	$	29.2
Vested and exercisable at December 31, 2020 and expected to vest thereafter (1)	18.6	$	12.69	7.94	$	118.4

(1) Forfeitures are recognized as they occur, rather than estimated.

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The following table presents the assumptions used to estimate the fair values of the stock options granted in the periods presented:


	Year Ended December 31,
	2018		2019		2020
Expected stock volatility (1)	63% - 72%		58	%	55% - 61%
Expected dividend yield (2)	—	%	—	%	—	%
Risk-free interest rate (3)	2.63% - 2.92%		1.54% - 2.47%		0.38% - 1.73%
Expected life (4)	5.5 - 6.5 years		5.7 - 6.5 years		5.5 - 6.5 years

(1) Management estimates volatility based on the historical trading volatility of a public company peer group and the implied volatility of our assets and current leverage.

(2) We have not issued dividends to date and do not anticipate issuing dividends.

(3) Based on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent expected term.

Schedule of Restricted Stock Activity

The following table summarizes our restricted stock activity for the year ended December 31, 2020:


	Number of Units or Shares (in millions)	Weighted Average Grant-Date Fair Value
Outstanding at December 31,2019	0.6	$	13.26
Granted	2.5	$	17.74
Released	(0.2)	$	15.37
Cancelled	(0.2)	$	19.18
Outstanding at December 31, 2020	2.7	$	16.86
Expected to vest after at December 31, 2020 (1)	2.7	$	16.86

(1) Forfeitures are recognized as they occur, rather than estimated.

Schedule of Share-based Compensation Expense Recognized Under the Incentive Plan

Share-based compensation expense recognized for the years ended December 31, 2018, 2019 and 2020 was as follows:


	Year Ended December 31,
(In millions)	2018		2019		2020
Cost of revenue	$	4.1	$	5.7	$	14.5
Selling, general and administrative expenses	15.9		24.5		60.0
Pre-tax share-based compensation expense	20.0		30.2		74.5
Less: Income tax benefit	(4.2)		(6.3)		(15.6)
Total share-based compensation expense, net of tax	$	15.8	$	23.9	$	58.9

Share-based Payment Arrangement, Activity

Compensation expense recognized related to these payments for the years ended December 31, 2018 and 2019 was as follows:


	Year Ended December 31,
(In millions)	2018		2019
Cost of revenue	$	6.5	$	—
Selling, general and administrative expenses	19.8		2.7
Total cash settled equity compensation expense	$	26.3	$	2.7

Debt - Schedule of Debt (Details) - USD ($)	Dec. 31, 2020	Dec. 01, 2020	Dec. 31, 2019	Nov. 03, 2016
Debt Instrument [Line Items]
Principal balance	$ 3,410,600,000		$ 3,944,800,000
Unamortized debt issuance costs	(44,200,000)		(66,600,000)
Unamortized debt discount	(3,700,000)		(4,900,000)
Total debt	3,362,700,000		3,873,300,000
Less: current portion of debt	(43,400,000)		(29,000,000.0)
Debt	3,319,300,000		3,844,300,000
Term Loan Facility \| Senior Facilities
Debt Instrument [Line Items]
Principal balance	2,795,600,000		2,824,600,000	$ 2,000,000,000.0
Unamortized debt issuance costs	(36,600,000)		(48,600,000)
Unamortized debt discount	(3,700,000)		(4,900,000)
Total debt	2,755,300,000		2,771,100,000
Less: current portion of debt	(29,000,000.0)		(29,000,000.0)
Debt	2,726,300,000		2,742,100,000
Senior notes \| 8.625% Senior Notes due 2024
Debt Instrument [Line Items]
Principal balance			1,120,200,000
Unamortized debt issuance costs			(18,000,000.0)
Unamortized debt discount			0
Total debt	0		1,102,200,000
Less: current portion of debt			0
Debt			$ 1,102,200,000
Stated interest rate				8.625%
Senior notes \| 5.375% Senior Notes due 2028
Debt Instrument [Line Items]
Principal balance	550,000,000.0
Unamortized debt issuance costs	(7,600,000)
Unamortized debt discount	0
Total debt	542,400,000
Less: current portion of debt	0
Debt	542,400,000
Stated interest rate		5.375%
Line of Credit \| Accounts Receivable Financing Agreement
Debt Instrument [Line Items]
Principal balance	65,000,000.0
Unamortized debt issuance costs	0
Unamortized debt discount	0
Total debt	65,000,000.0
Less: current portion of debt	(14,400,000)
Debt	$ 50,600,000

Goodwill and Intangible Assets - Changes in Carrying Amounts of Goodwill by Reportable Segment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 2,745.8	$ 2,474.7
Goodwill acquired	8.4	265.3
Foreign currency translation	7.4	5.8
Onica measurement period adjustments	(0.5)
Goodwill, ending balance	2,761.1	2,745.8
Gross goodwill			$ 3,056.1
Less: Accumulated impairment charges			(295.0)
Goodwill, net	2,761.1	2,474.7	2,761.1
Multicloud Services
Goodwill [Roll Forward]
Goodwill, beginning balance	2,371.6	2,101.1
Goodwill acquired	8.4	265.3
Foreign currency translation	6.5	5.2
Onica measurement period adjustments	(0.5)
Goodwill, ending balance	2,386.0	2,371.6
Gross goodwill			2,681.0
Less: Accumulated impairment charges			(295.0)
Goodwill, net	2,386.0	2,371.6	2,386.0
Apps & Cross Platform
Goodwill [Roll Forward]
Goodwill, beginning balance	322.2	322.0
Goodwill acquired	0.0	0.0
Foreign currency translation	0.4	0.2
Onica measurement period adjustments	0.0
Goodwill, ending balance	322.6	322.2
Gross goodwill			322.6
Less: Accumulated impairment charges			0.0
Goodwill, net	322.6	322.2	322.6
OpenStack Public Cloud
Goodwill [Roll Forward]
Goodwill, beginning balance	52.0	51.6
Goodwill acquired	0.0	0.0
Foreign currency translation	0.5	0.4
Onica measurement period adjustments	0.0
Goodwill, ending balance	52.5	52.0
Gross goodwill			52.5
Less: Accumulated impairment charges			0.0
Goodwill, net	$ 52.5	$ 52.0	$ 52.5

Net Loss Per Share (Tables)

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Loss Per Share

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


	Year Ended December 31,
(In millions, except per share data)	2018		2019		2020
Basic and diluted net loss per share:
Net loss attributable to common stockholders	$	(470.6)	$	(102.3)	$	(245.8)
Weighted average shares outstanding:
Common stock	165.2		165.3		179.6
Number of shares used in per share computations	165.2		165.3		179.6
Net loss per share	$	(2.85)	$	(0.62)	$	(1.37)

Condensed Financial Information of Registrant (Parent Company Only) (Details)	Dec. 01, 2020
5.375% Senior Notes due 2028 \| Senior notes
Debt Instrument [Line Items]
Stated interest rate	5.375%

Investments	12 Months Ended
Investments	Dec. 31, 2020
Investments, All Other Investments [Abstract]
Investments	Investments In June 2019, CrowdStrike Holdings, Inc. ("CrowdStrike"), an entity in which Rackspace US, Inc. held an equity investment, completed an initial public offering and became a publicly-traded company. Prior to the date of CrowdStrike's initial public offering, our investment in CrowdStrike had a carrying value of $10.0 million and was accounted for as an equity investment without a readily determinable fair value. With the availability of observable price changes following the completion of CrowdStrike's initial public offering, our investment in CrowdStrike was measured at fair value on a prospective basis using the end of period quoted stock price, which is classified as a Level 1 input within the fair value hierarchy. In December 2019, Rackspace US, Inc. sold the investment in CrowdStrike for $106.9 million in cash proceeds. We hold other equity investments that do not have readily determinable fair values. The aggregate carrying value of these other equity investments was $0.1 million and $5.1 million as of December 31, 2019 and 2020, respectively. For the year ended December 31, 2018, we recognized a net gain on investment activity of $4.6 million, of which $3.8 million related to the sale of shares in Mailgun Technologies, Inc. (“Mailgun Technologies”). See Note 14, “Divestitures” for more information. For the year ended December 31, 2019, we recognized a net gain on investment activity of $99.5 million which was primarily comprised of a $96.9 million realized gain related to the sale of the CrowdStrike investment. For the year ended December 31, 2020, we recognized a net gain on investment activity of $0.7 million, primarily comprised of a realized gain upon the receipt of proceeds related to the 2017 sale of an equity investment.

Condensed Financial Information of Registrant (Parent Company Only) (Tables)

12 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Balance Sheet

RACKSPACE TECHNOLOGY, INC. (Parent Company Only)

CONDENSED BALANCE SHEETS


(In millions, except per share data)	December 31, 2019		December 31, 2020
ASSETS
Investment in subsidiaries of Parent	$	898.8	$	1,383.7
Total assets	$	898.8	$	1,383.7
LIABILITIES AND STOCKHOLDERS' EQUITY
Stockholders' equity:
Preferred stock, $0.01 par value per share: 5.0 shares authorized; no shares issued or outstanding	—		—
Common stock, $0.01 par value per share: 1,495.0 shares authorized; 165.4 and 201.8 shares issued and outstanding, respectively	1.6		2.0
Additional paid-in capital	1,602.7		2,363.6
Accumulated other comprehensive income (loss)	12.0		(18.6)
Accumulated deficit	(717.5)		(963.3)
Total stockholders' equity	898.8		1,383.7
Total liabilities and stockholders' equity	$	898.8	$	1,383.7

Condensed Statement of Comprehensive Income

RACKSPACE TECHNOLOGY, INC. (Parent Company Only)

CONDENSED STATEMENTS OF COMPREHENSIVE LOSS


	Year Ended December 31,
(In millions, except per share data)	2018		2019		2020
Equity in net losses in Parent's subsidiaries	$	(470.6)	$	(102.3)	$	(245.8)
Net loss and total comprehensive loss	$	(470.6)	$	(102.3)	$	(245.8)
Net loss per share
Basic and diluted	$	(2.85)	$	(0.62)	$	(1.37)
Weighted average number of shares outstanding:
Basic and diluted	165.2		165.3		179.6

Taxes - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
Taxes - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2017	Dec. 31, 2018
Tax Credit Carryforward [Line Items]
Net operating loss carryforwards	$ 51.7	$ 113.3
Tax credit carryforward		68.2
Disallowed interest carryforward	40.2	5.4
Provisional income tax benefit			$ 196.8
Final income tax benefit			$ 186.3
Unrecognized tax benefits that would favorably impact effective tax rate	47.4	42.3		$ 36.0
Accrued interest and penalties	2.1	2.4		$ 0.0
Income tax impact related to tax court decision		1.0
U.S.
Tax Credit Carryforward [Line Items]
Net operating loss carryforwards		383.1
Operating loss carryforward, subject to expiration		140.8
Operating loss carryforward, not subject to expiration		242.3
Disallowed interest carryforward		6.7
Foreign
Tax Credit Carryforward [Line Items]
Net operating loss carryforwards		117.2
Operating loss carryforward, subject to expiration		7.8
Operating loss carryforward, not subject to expiration		$ 109.4
Foreign \| Swiss Federal Tax Administration (FTA)
Tax Credit Carryforward [Line Items]
Income tax expense, remeasurement of deferred tax assets	$ 4.4
Foreign \| Maximum
Tax Credit Carryforward [Line Items]
Carryforward period		20 years
Foreign \| Minimum
Tax Credit Carryforward [Line Items]
Carryforward period		5 years

Leases - Cash Flow (Details) - USD ($) $ in Millions	12 Months Ended
Leases - Cash Flow (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating leases	$ (85.3)	$ (101.6)
Finance leases	(20.2)	(9.0)
New lease assets obtained in exchange for lease liabilities:	$ 42.7	$ 33.7

Share-Based Compensation, Settlement of Share-Based Awards, and Employee Benefit Plans - Payment Activity (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 74.5	$ 30.2	$ 20.0
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	14.5	5.7	4.1
Selling, general and administrative expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 60.0	24.5	15.9
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		2.7	26.3
Restricted Stock Units (RSUs) \| Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		0.0	6.5
Restricted Stock Units (RSUs) \| Selling, general and administrative expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		$ 2.7	$ 19.8

Leases - Property and Equipment Under Finance Leases (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Lessee, Lease, Description [Line Items]
Less: Accumulated depreciation	$ (46.4)	$ (21.3)
Net book value of property and equipment under finance leases	368.0	105.6
Non-cash increase in buildings within property, equipment and software, net due to lease modification	220.3	0.0	$ 0.0
Computers and equipment
Lessee, Lease, Description [Line Items]
Property and equipment under finance leases	108.7	21.6
Building
Lessee, Lease, Description [Line Items]
Property and equipment under finance leases	$ 305.7	$ 105.3