Property, Plant and Equipment

9 Months Ended

Sep. 30, 2021

Property Plant And Equipment [Abstract]

4. Property, Plant and Equipment

Property, plant and equipment is comprised of the following:

	Successor			Predecessor
(dollars in millions)	September 30, 2021			December 31, 2020			Depreciable Lives (Years)
Land and rights-of-way	$	132.3		$	115.7		20 – Indefinite
Buildings and leasehold improvements		184.8			323.8		5 – 40
Network equipment		1,498.6			4,180.0		2 – 50
Office software, furniture, fixtures and vehicles		89.6			243.7		2 – 14
Construction in process		73.4			60.4		n/a
Gross value		1,978.7			4,923.6
Accumulated depreciation		(21.8	)		(3,194.5	)
Property, plant and equipment, net	$	1,956.9		$	1,729.1

In connection with the Merger, a fair value step-up of $162.1 million was recorded to property, plant and equipment (“PP&E”). The estimated fair value of the PP&E was determined using Level 3 inputs within the fair value hierarchy, as described in Note 8. A combination of cost and market approaches were used to estimate the fair values of the PP&E as of the Merger Date. The depreciable lives of property, plant and equipment remained consistent in the Successor period as compared to the Predecessor period. See Note 2 for additional information regarding the Merger.

Depreciation expense on property, plant and equipment, including assets accounted for as finance leases, totaled $21.8 million in the Successor period and $49.4 million and $185.0 million, respectively, in the Predecessor periods included within the three and nine months ended September 30, 2021. Depreciation expense on property, plant and equipment, including assets accounted for as finance leases, totaled $68.3 million and $210.0 million, respectively, for the three and nine months ended September 30, 2020.

No asset impairment losses were recognized for the Successor period, the Predecessor periods included within the three and nine months ended September 30, 2021 and the three and nine months ended September 30, 2020.