Cloud Computing Costs

9 Months Ended

Sep. 30, 2023

Capitalized costs to implement cloud computing arrangements at cost and accumulated amortization were as follows:


(in millions)	September 30, 2023		December 31, 2022
Short-term portion	$	24.1	$	18.0
Long-term portion	110.3		87.1
Total capitalized implementation costs	134.4		105.1
Less: accumulated amortization	(31.0)		(17.1)
Capitalized implementation costs, net	$	103.4	$	88.0

Amortization expense is recognized on a straight-line basis over the expected term of the hosting arrangements, which range from three to ten years. Amortization expense was $5.4 million and $3.8 million for the three months ended September 30, 2023 and 2022, respectively, and was $14.7 million and $8.8 million for the nine months ended September 30, 2023 and 2022, respectively.