Property, Plant and Equipment

12 Months Ended

Dec. 31, 2021

Property Plant And Equipment [Abstract]

5. Property, Plant and Equipment

Property, plant and equipment is comprised of the following:

	Successor				Predecessor
	December 31,			Depreciable	December 31,			Depreciable
(dollars in millions)	2021			Lives (Years)	2020			Lives (Years)
Land and rights-of-way	$	132.3		20 – Indefinite	$	115.7		20 – Indefinite
Buildings and leasehold improvements		183.5		5 – 40		323.8		5 – 40
Network equipment		1,566.9		2 – 50		4,180.0		2 – 50
Office software, furniture, fixtures and vehicles		109.8		2 – 14		243.7		2 – 14
Construction in process		72.2		n/a		60.4		n/a
Gross value		2,064.7				4,923.6
Accumulated depreciation		(98.1	)			(3,194.5	)
Property, plant and equipment, net	$	1,966.6			$	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 1. A combination of cost and market approaches were used to estimate the fair values of the PP&E as of the Merger Date. See Note 4 for additional information regarding the Merger.

Depreciation expense on PP&E, including assets accounted for as finance leases, totaled $103.2 million and $185.0 million in the Successor and Predecessor periods of 2021, respectively. Depreciation expense on PP&E was $279.0 million in 2020 and $290.2 million in 2019. The portion of depreciation expense associated with cost of providing services was 84% and 85% for the Successor and Predecessor periods of 2021, respectively, and 86% and 87% in 2020 and 2019, 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 Successor and Predecessor periods in 2021 and the years ended December 31, 2020 and 2019.