Property, Plant and Equipment

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

5.Property, Plant and Equipment

Property, plant and equipment is comprised of the following:

	December 31,						Depreciable
(dollars in millions)	2023			2022			Lives (Years)
Land and rights-of-way	$	133.5		$	132.8		20 – Indefinite
Buildings and leasehold improvements		223.1			201.3		5 – 40
Network equipment		2,516.1			1,970.5		2 – 50
Office software, furniture, fixtures and vehicles		175.3			135.2		2 – 14
Construction in process		152.1			112.2		n/a
Gross value		3,200.1			2,552.0
Accumulated depreciation		(741.0	)		(435.2	)
Property, plant and equipment, net	$	2,459.1		$	2,116.8

In 2022, the Company identified an error in depreciation expense primarily related to capitalized office software costs resulting in the overstatement of depreciation expense. The Company recorded an after-tax adjustment of $10.5 million, of which $4.0 million related to the 2021 successor period. The impact of the out of period correction is immaterial to the 2022 annual and 2021 successor period consolidated financial statements.

Depreciation expense on PP&E, including assets accounted for as finance leases, totaled $334.9 million in 2023, $375.7 million in 2022, and $103.2 million and $185.0 million in the Successor and Predecessor periods of 2021, respectively. The portion of depreciation expense associated with cost of providing services was 88% and 91% in 2023 and 2022, respectively, and 84% and 85% for the Successor and Predecessor periods of 2021, respectively. There are numerous assets included within network equipment resulting in a range of depreciable lives between 2 and 50 years, the majority of which fall within the range of 7 to 22 years.

No asset impairment losses were recognized on PP&E in the year ended December 31, 2023 and the Successor and Predecessor periods in 2021. The Company recorded a loss on impairment of long-lived assets of $2.7 million in the third quarter of 2022 related to the impairment of leasehold improvements at the Company’s headquarters.