Rackspace Hosting (RAX) 10-Q 12 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information Document	9 Months Ended
	Sep. 30, 2013	Nov. 01, 2013
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'RACKSPACE HOSTING, INC.	'
Entity Central Index Key	'0001107694	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Large Accelerated Filer	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'
Amendment Flag	'false	'
Entity Common Stock, Shares Outstanding	'	139,813,726

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$269,995	$292,061
Accounts receivable, net of allowance for doubtful accounts and customer credits of $4,236 as of December 31, 2012 and $4,350 as of September 30, 2013	113,543	92,834
Deferred income taxes	10,280	10,320
Prepaid expenses	39,654	25,195
Other current assets	9,191	4,835
Total current assets	442,663	425,245
Property and equipment, net	850,905	724,985
Goodwill	76,831	68,742
Intangible assets, net	25,328	23,802
Other non-current assets	56,042	52,777
Total assets	1,451,769	1,295,551
Current liabilities:	'	'
Accounts payable and accrued expenses	130,390	105,174
Accrued compensation and benefits	67,754	48,404
Income and other taxes payable	15,124	21,550
Current portion of deferred revenue	17,839	17,265
Current portion of obligations under capital leases	44,375	61,302
Current portion of debt	1,835	1,744
Total current liabilities	277,317	255,439
Non-current liabilities:	'	'
Deferred revenue	4,372	3,695
Obligations under capital leases	26,192	60,335
Debt	177	1,991
Deferred income taxes	79,654	71,081
Deferred rent	40,593	32,293
Other liabilities	34,756	27,070
Total liabilities	463,061	451,904
COMMITMENTS AND CONTINGENCIES	'	'
Stockholders' equity:	'	'
Common stock, $0.001 par value per share: 300,000,000 shares authorized; 137,797,855 shares issued and outstanding as of December 31, 2012; 139,797,112 shares issued and outstanding as of September 30, 2013	140	138
Additional paid-in capital	594,344	515,188
Accumulated other comprehensive loss	-8,125	-8,089
Retained earnings	402,349	336,410
Total stockholders’ equity	988,708	843,647
Total liabilities and stockholders' equity	$1,451,769	$1,295,551

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parentheticals) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, except Share data, unless otherwise specified
Current assets:	'	'
Allowance for doubtful accounts and customer credits	$4,350	$4,236
Stockholders' equity:	'	'
Common stock, par value	$0.00	$0.00
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	139,797,112	137,797,855
Common stock, shares outstanding	139,797,112	137,797,855

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Comprehensive Income (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Net revenue	$388,636	$335,985	$1,126,683	$956,330
Costs and expenses:	'	'	'	'
Cost of revenue	127,404	107,348	358,672	310,001
Research and development	23,773	15,563	65,364	39,794
Sales and marketing	50,869	41,109	152,952	122,705
General and administrative	78,075	62,663	218,392	179,781
Depreciation and amortization	80,753	63,972	225,324	180,931
Total costs and expenses	360,874	290,655	1,020,704	833,212
Income from operations	27,762	45,330	105,979	123,118
Other income (expense):	'	'	'	'
Interest expense	-689	-1,253	-2,462	-3,758
Interest and other income (expense)	440	38	336	-230
Total other income (expense)	-249	-1,215	-2,126	-3,988
Income before income taxes	27,513	44,115	103,853	119,130
Income taxes	11,202	16,918	37,914	43,619
Net income	16,311	27,197	65,939	75,511
Other comprehensive income, net of tax	'	'	'	'
Foreign currency translation adjustments	11,893	5,853	-36	6,830
Other comprehensive income (loss)	11,893	5,853	-36	6,830
Comprehensive income	$28,204	$33,050	$65,903	$82,341
Net income per share	'	'	'	'
Basic	$0.12	$0.20	$0.48	$0.56
Diluted	$0.11	$0.19	$0.46	$0.54
Weighted average number of shares outstanding	'	'	'	'
Basic	138,714	135,946	138,140	134,683
Diluted	143,543	141,474	142,699	140,794

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Cash Flows From Operating Activities	'	'
Net income	$65,939	$75,511
Adjustments to reconcile net income to net cash provided by operating activities	'	'
Depreciation and amortization	225,324	180,931
Loss on disposal of equipment, net	892	962
Provision for bad debts and customer credits	3,843	4,559
Deferred income taxes	10,305	3,793
Deferred rent	9,285	6,329
Share-based compensation expense	42,457	30,302
Excess tax benefits from share-based compensation arrangements	-17,383	-34,981
Changes in certain assets and liabilities	'	'
Accounts receivable	-24,129	-29,103
Prepaid expenses and other current assets	-18,560	-11,030
Accounts payable and accrued expenses	26,948	51,206
Deferred revenue	1,191	-292
All other operating activities	8,430	524
Net cash provided by operating activities	334,542	278,711
Cash Flows From Investing Activities	'	'
Purchases of property and equipment	-325,873	-187,455
Acquisitions, net of cash acquired	-6,203	-5,945
All other investing activities	-1,808	42
Net cash used in investing activities	-333,884	-193,358
Cash Flows From Financing Activities	'	'
Principal payments of capital leases	-51,208	-52,970
Principal payments of notes payable	-1,863	-1,911
Payments for deferred acquisition obligations	-1,296	-4,726
Proceeds from notes payable	0	691
Receipt of Texas Enterprise Fund Grant	0	3,500
Proceeds from employee stock plans	14,846	31,514
Excess tax benefits from share-based compensation arrangements	17,383	34,981
Net cash provided by (used in) financing activities	-22,138	11,079
Effect of exchange rate changes on cash and cash equivalents	-586	1,363
Increase (decrease) in cash and cash equivalents	-22,066	97,795
Cash and cash equivalents, beginning of period	292,061	159,856
Cash and cash equivalents, end of period	269,995	257,651
Supplemental cash flow information:	'	'
Acquisition of property and equipment by vendor financed capital leases	415	59,833
Acquisition of property and equipment by vendor financed notes payable	0	5,237
Increase (decrease) in property and equipment in accounts payable and accrued expenses	23,194	-2,858
Non-cash purchases of property and equipment	23,609	62,212
Shares issued in business combinations	4,457	2,745
Cash payments for interest, net of amount capitalized	2,599	3,588
Cash payments for income taxes	$12,674	$7,868

Company_Overview_Basis_of_Pres

Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2013
Company Overview and Summary of Significant Accounting Policies [Abstract]	'
Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies	'
	Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies
	Nature of Operations
	As used in this report, the terms “Rackspace,” “Rackspace Hosting,” “we,” “our company,” “the company,” “us,” or “our” refer to Rackspace® Hosting, Inc. and its subsidiaries. Rackspace Hosting, Inc., through its operating subsidiaries, is a provider of cloud computing services, managing web-based IT systems for small and medium-sized businesses as well as large enterprises. We focus on providing a service experience for our customers, which we call Fanatical Support®.
	Our operations began in 1998 as a limited partnership, and Rackspace Hosting, Inc. was incorporated in Delaware on March 7, 2000.
	Basis of Consolidation
	The consolidated financial statements include the accounts of Rackspace Hosting and our wholly-owned subsidiaries, which include, among others, Rackspace US, Inc., our domestic operating entity, and Rackspace Limited, our United Kingdom operating entity. Intercompany transactions and balances have been eliminated in consolidation.
	Basis of Presentation
	The accompanying consolidated financial statements as of September 30, 2013, and for the three and nine months ended September 30, 2012 and 2013, are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and Rule 10-01 of Regulation S-X. Accordingly, they do not include all financial information and disclosures required by GAAP for complete financial statements, and certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. The unaudited interim consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include normal recurring adjustments, necessary for a fair statement of our financial position as of September 30, 2013, our results of operations for the three and nine months ended September 30, 2012 and 2013, and our cash flows for the nine months ended September 30, 2012 and 2013.
	These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of December 31, 2012 included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 1, 2013. The results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for the year ending December 31, 2013, or for any other interim period, or for any other future year.
	Certain reclassifications have been made to prior year balances in order to conform to the current year’s presentation. These include reclassifications within the Condensed Consolidated Statements of Comprehensive Income that we believe provide greater transparency and clarity about our costs and expenses. The changes to the Condensed Consolidated Statements of Comprehensive Income are summarized as follows:
	•	Certain costs (primarily salaries and certain benefits) that were previously included in General and Administrative expenses have been reclassified to either Cost of Revenue or Sales and Marketing expenses because we believe the personnel or activities are directly related to supporting our customers, operating our data centers or selling and marketing our products and services.
	•	Certain costs that were previously included in General and Administrative expenses have been reclassified to a new category, Research and Development costs. Our research and development efforts are focused on the deployment of new technologies to address emerging trends, the development and evolution of proprietary tools, and the enhancement of systems and processes for sales and support. Included in this category are costs related to preliminary project assessment, research and development, re-engineering, training, and application maintenance. These costs are consistent with the definition of research and development activities in the Financial Accounting Standard Board's Accounting Standards Codification Topic 730, Research and Development.
	The changes do not affect the Company's previously reported Income from Operations or Net Income for the three and nine months ended September 30, 2012 or amounts in the Condensed Consolidated Balance Sheet as of December 31, 2012 and Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2012. In connection with the filing of our 2013 Annual Report on Form 10-K, similar reclassifications will be made to the Company's Consolidated Statements of Comprehensive Income.
	The tables below summarize the amount by which each category in the Consolidated Statement of Comprehensive Income increased/(decreased) for each period:
		Three Months Ended				Nine Months Ended
		September 30, 2012				September 30, 2012
	(In thousands)	Reclassification Amount				Reclassification Amount
	Cost of revenue	$	12,617			$	37,978
	Research and development	$	15,563			$	39,794
	Sales and marketing	$	2,185			$	5,666
	General and administrative	$	(30,365	)		$	(83,438	)
		Year Ended
		December 31, 2011							December 31, 2012
	(In thousands)	Reclassification Amount			As Adjusted				Reclassification Amount			As Adjusted
	Cost of revenue	$	37,246		$	346,341			$	51,534		$	419,013
	Research and development	$	33,709		$	33,709			$	56,736		$	56,736
	Sales and marketing	$	4,669		$	131,174			$	8,064		$	166,172
	General and administrative	$	(75,624	)	$	194,957			$	(116,334	)	$	244,732
	We revised the amounts previously reported as Research and Development and General and Administrative costs for the three months ended March 31, 2012 and 2013 and the three and six months ended June 30, 2012 and 2013. We determined that certain internal projects did not meet the accounting definition of Research and Development costs, and such correcting amounts were reclassified to General and Administrative costs, as follows:
		Three Months Ended							Three Months Ended
		March 31, 2012							March 31, 2013
	(In thousands)	Reclassification Amount			As Adjusted				Reclassification Amount			As Adjusted
	Research and development	$	(2,605	)	$	10,842			$	(4,398	)	$	18,375
	General and administrative	$	2,605		$	57,911			$	4,398		$	67,477
		Three Months Ended							Three Months Ended
		June 30, 2012							June 30, 2013
	(In thousands)	Reclassification Amount			As Adjusted				Reclassification Amount			As Adjusted
	Research and development	$	(3,353	)	$	13,389			$	(3,560	)	$	23,216
	General and administrative	$	3,353		$	59,207			$	3,560		$	72,840
		Six Months Ended							Six Months Ended
		June 30, 2012							June 30, 2013
	(In thousands)	Reclassification Amount			As Adjusted				Reclassification Amount			As Adjusted
	Research and development	$	(5,958	)	$	24,231			$	(7,958	)	$	41,591
	General and administrative	$	5,958		$	117,118			$	7,958		$	140,317
	Use of Estimates
	The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to accounts receivable and customer credits, property and equipment, fair values of intangible assets and goodwill, useful lives of intangible assets, fair value of share-based compensation, contingencies, and income taxes, among others. Whenever possible, we base our estimates and assumptions on historical experience. However, certain estimates require us to make assumptions about expected future cash flow, events and usage patterns that we cannot influence or control. Our judgments, assumptions and estimates are based upon facts and circumstances known to us when we prepare the financial statements and that we believe to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities or recording revenue and expenses in our financial statements. Changes in facts and circumstances may cause us to change our assumptions and estimates in future periods, and it is possible that actual results could differ from our estimates. We have engaged third-party consultants to assist management in the valuation of acquired assets, including other intangibles.
	Significant Accounting Policies
	The accompanying financial statements reflect the application of certain significant accounting policies. There have been no material changes to our significant accounting policies that are disclosed in our audited consolidated financial statements and notes thereto as of December 31, 2012, included in our Annual Report on Form 10-K.

Earnings_Per_Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2013
Earnings Per Share, Basic and Diluted [Abstract]	'
Earnings Per Share	'
	Earnings Per Share
	The following table sets forth the computation of basic and diluted earnings per share:
		Three Months Ended September 30,				Nine Months Ended September 30,
	(In thousands, except per share data)	2012		2013		2012		2013
	Basic net income per share:
	Net income	$	27,197	$	16,311	$	75,511	$	65,939
	Weighted average shares outstanding:
	Common stock	135,946		138,714		134,683		138,140
	Number of shares used in per share computations	135,946		138,714		134,683		138,140
	Earnings per share	$	0.2	$	0.12	$	0.56	$	0.48
	Diluted net income per share:
	Net income	$	27,197	$	16,311	$	75,511	$	65,939
	Weighted average shares outstanding:
	Common stock	135,946		138,714		134,683		138,140
	Stock options, awards and employee share purchase plan	5,528		4,829		6,111		4,559
	Number of shares used in per share computations	141,474		143,543		140,794		142,699
	Earnings per share	$	0.19	$	0.11	$	0.54	$	0.46
	We excluded 1.5 million and 3.9 million potential common shares from the computation of dilutive earnings per share for the three months ended September 30, 2012 and 2013, respectively, and 1.1 million and 2.8 million potential shares for the nine months ended September 30, 2012 and 2013, respectively, because the effect would have been anti-dilutive.

Cash_and_Cash_Equivalents

Cash and Cash Equivalents	9 Months Ended
	Sep. 30, 2013
Cash and Cash Equivalents [Abstract]	'
Cash and Cash Equivalents	'
	Cash and Cash Equivalents
	Cash and cash equivalents consisted of:
	(In thousands)	December 31,		September 30,
		2012		2013
	Cash deposits	$	131,271	$	161,626
	Money market funds	160,790		108,369
	Cash and cash equivalents	$	292,061	$	269,995
	Our available cash and cash equivalents are held in bank deposits, overnight sweep accounts, and money market funds. We actively monitor the third-party depository institutions that hold our deposits. Our emphasis is primarily on safety of principal while secondarily maximizing yield on those funds.
	Our money market mutual funds comply with SEC Rule 2a-7 and invest exclusively in high-quality, short-term obligations that include securities issued or guaranteed by the U.S. government or by U.S. government agencies and floating rate and variable rate demand notes of U.S. and foreign corporations.

Fair_Value_Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2013
Fair Value Disclosures [Abstract]	'
Fair Value Measurements	'
	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. There is a three-tier fair value of hierarchy, which prioritizes the inputs used in measuring fair value as follows:
	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.
	There have been no material changes to the valuation techniques utilized in the fair value measurement of assets and liabilities presented on our balance sheet as disclosed in our Form 10-K for the year ended December 31, 2012.
	Assets and liabilities measured at fair value on a recurring basis are summarized by level below. The table does not include assets and liabilities that are measured at historical costs or any other basis other than fair value.
			December 31, 2012
	(In thousands)		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs		Significant Unobservable Inputs		Total Assets/Liabilities at Fair Value
					(Level 2)		(Level 3)
	Assets:
	Money market funds (1)		$	160,790	$	—	$	—	$	160,790
	Rabbi trust (2)		520		—		—		520
	Total		$	161,310	$	—	$	—	$	161,310
	Liabilities:
	Deferred compensation (3)		$	410	$	—	$	—	$	410
	Total		$	410	$	—	$	—	$	410
			September 30, 2013
	(In thousands)		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs		Significant Unobservable Inputs		Total Assets/Liabilities at Fair Value
					(Level 2)		(Level 3)
	Assets:
	Money market funds (1)		$	108,369	$	—	$	—	$	108,369
	Rabbi trust (2)		773		—		—		773
	Total		$	109,142	$	—	$	—	$	109,142
	Liabilities:
	Deferred compensation (3)		$	570	$	—	$	—	$	570
	Total		$	570	$	—	$	—	$	570
	-1	Money market funds are classified in cash and cash equivalents.
	-2	Investments in marketable securities held in a Rabbi Trust associated with a non-qualified deferred compensation plan are classified in other non-current assets.
	-3	Obligations to pay benefits under a non-qualified deferred compensation plan are classified in other non-current liabilities.
	Our Rabbi Trust was established in 2009, and we elected the fair value option, which allows for the recognition of gains and losses to be recorded in the Statement of Comprehensive Income in the same period as the gains and losses are incurred as part of the non-qualified deferred compensation plan. During the three and nine months ended September 30, 2012 and September 30, 2013, we recognized minimal net gains as interest and other income.

Property_and_Equipment_net

Property and Equipment, net	9 Months Ended
	Sep. 30, 2013
Property, Plant and Equipment [Abstract]	'
Property and Equipment, net	'
	Property and Equipment, net
	Property and equipment consisted of:
	(Dollar amounts in thousands)	Estimated Useful Lives				December 31,			September 30,
						2012			2013
	Computers, software and equipment	1	-	5	years	$	1,140,772		$	1,401,718
	Furniture and fixtures	7	years			40,557			52,028
	Buildings and leasehold improvements	2	-	30	years	214,858			231,232
	Land					15,864			16,037
	Property and equipment, at cost					1,412,051			1,701,015
	Less accumulated depreciation and amortization					(738,274		)	(917,948		)
	Work in process					51,208			67,838
	Property and equipment, net					$	724,985		$	850,905
	Depreciation and leasehold amortization expense, not including amortization expense for intangible assets, was $61.9 million and $78.1 million for the three months ended September 30, 2012 and 2013, respectively, and $174.2 million and $218.0 million for the nine months ended September 30, 2012 and 2013, respectively.
	At December 31, 2012, the work in process balance consisted of build outs of $28.4 million for office facilities, $2.8 million for data centers, and $20.0 million for capitalized software and other projects. At September 30, 2013, the work in process balance consisted of build outs of $24.2 million for office facilities, $4.8 million for data centers, and $38.8 million for capitalized software and other projects.
	There was no interest capitalized during the three or nine months ended September 30, 2012 or 2013.

Business_Combinations_and_Good

Business Combinations and Goodwill	9 Months Ended
	Sep. 30, 2013
Business Combinations and Goodwill [Abstract]	'
Business Combinations and Goodwill	'
	Business Combinations and Goodwill
	During the first nine months of 2013, we acquired two companies for total cash and equity consideration of $11.5 million, of which approximately $8.1 million was attributed to goodwill, $5.1 million to acquired intangible assets and $1.7 million to other net liabilities assumed. The acquisitions were accounted for using the acquisition method, and the purchase prices were allocated based on the estimated fair values of the individual assets acquired and liabilities assumed at the date of acquisition. These estimates are subject to change within the measurement period. The Consolidated Statements of Comprehensive Income include the results of operations for the acquired companies commencing on their respective acquisition dates. Pro forma results of operations for these acquisitions have not been presented because they are not material to the consolidated results of operations, either individually or in aggregate.
	The finite-lived intangible assets acquired as part of these acquisitions have a weighted-average useful life of 3.2 years.
	The following table provides a roll forward of our goodwill balance.
	(In thousands)
	Balance at December 31, 2012	$	68,742
	Acquisitions	8,089
	Balance at September 30, 2013	$	76,831
	The goodwill recorded in 2013 is not deductible for tax purposes.
	In prior periods, we acquired companies that required additional future payments in addition to the initial cash payment. During the first nine months of 2013, we paid $1.4 million related to these previous acquisitions, and as of September 30, 2013, the fair value of the remaining liability recorded was $0.6 million.

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Contingencies	'
	Contingencies
	We have contingent liabilities resulting from various litigation, claims and commitments. We record accruals for loss contingencies when losses are considered probable and can be reasonably estimated. The amount that will ultimately be paid related to these matters may differ from the recorded accruals, and the timing of such payments is uncertain. We are involved in the following legal proceedings:
	On October 22, 2008, Benjamin E. Rodriguez D/B/A Management and Business Advisors vs. Rackspace Hosting, Inc. and Graham Weston was filed in the 37th District Court in Bexar County Texas by a former consultant to the company, Benjamin E. Rodriguez. The suit alleges breach of an oral agreement to issue Mr. Rodriguez a 1% interest in our stock in the form of options or warrants for compensation for services he was engaged to perform for us. We believe that the plaintiff’s position is without merit and intend to vigorously defend this lawsuit. We believe that the amount or range of reasonably possible loss in this case will not have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows.
	We are also a party to various claims that certain of our products, 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 and otherwise harm our business. We have disputed the allegations of wrongdoing in these proceedings and intend to vigorously defend ourselves in all such matters.
	We cannot predict the impact, if any, that any of the matters described above may have on our business, results of operations, financial position, or cash flows. Because of the inherent uncertainties of such matters, including the early stage and lack of specific damage claims in many of them, we cannot estimate the range of possible losses from them.

ShareBased_Compensation

Share-Based Compensation	9 Months Ended
	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Share-Based Compensation	'
	Share-Based Compensation
	The Company has granted equity awards to its employees and directors in the form of stock options and restricted stock. The exercise price of all stock options granted is not less than 100% of the fair market value of a share of common stock as of the date of grant. The stock options granted generally vest ratably over a four-year period or cliff-vest at the third anniversary date of the grant. Stock options assumed through acquisitions vest 25% the first year and ratably over the remaining periods. All stock options expire seven to ten years following the grant date. The restricted stock generally vests ratably over a four-year period. Certain key executives receive restricted stock grants that vest based on predetermined market and/or performance conditions.
	The composition of the equity awards outstanding as of December 31, 2012 and September 30, 2013 was as follows:
		December 31,		September 30,
		2012		2013
	Restricted stock	2,800,230		3,614,592
	Stock options	9,032,512		10,789,145
	Total outstanding awards	11,832,742		14,403,737
	The Company also has an Employee Stock Purchase Plan (the "ESPP"). Under the ESPP, eligible employees may purchase a limited number of shares of the Company's common stock at the lesser of 85% of the market value on the enrollment date or the purchase date. The ESPP is made up of a series of offering periods. Each offering period has a maximum term of 24 months and is divided into semi-annual purchase intervals. The current ESPP began on July 1, 2013 and will conclude on June 30, 2015. Eligible employees may enroll at the beginning of any semi-annual purchase interval.
	Share-Based Compensation Expense
	Share-based compensation expense was recognized as follows:
		Three Months Ended September 30,						Nine Months Ended September 30,
	(in thousands)	2012			2013			2012			2013
	Cost of revenue	$	2,499		$	3,453		$	6,833		$	8,707
	Research and development	1,379			2,306			3,619			5,647
	Sales and marketing	2,021			2,149			4,615			5,551
	General and administrative	6,519			9,051			15,235			22,552
	Pre-tax share-based compensation	12,418			16,959			30,302			42,457
	Less: Income tax benefit	(4,729		)	(6,578		)	(11,095		)	(15,500		)
	Total share-based compensation expense, net of tax	$	7,689		$	10,381		$	19,207		$	26,957
	The Company has made certain reclassifications to the prior period amounts above in order to conform to the current period's presentation. Refer to Note 1, "Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies," for more information about these reclassifications.
	As of September 30, 2013, there was $196.5 million of total unrecognized compensation cost related to restricted stock, options and the ESPP, which will be amortized using the straight-line method over a weighted average period of 2.5 years.

Taxes

Taxes	9 Months Ended
	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
Taxes	'
	Taxes
	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 expect a taxable profit in the U.S. and U.K. for the full year 2013 before consideration of excess tax benefits, and therefore we anticipate utilizing benefits of tax deductions related to stock compensation in 2013. As a result, we have recognized an excess tax benefit in the U.S. and U.K. during the current period.
	The company has not recognized a deferred tax liability for undistributed earnings of its foreign subsidiaries because such earnings are considered indefinitely invested in a foreign country. We intend to reinvest these earnings in active non-U.S. business operations and do not currently intend to repatriate these earnings to fund U.S. operations. The determination of the amount of unrecognized deferred tax liability related to undistributed earnings is not practicable.

Comprehensive_Income

Comprehensive Income	9 Months Ended
	Sep. 30, 2013
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]	'
Comprehensive Income	'
	Comprehensive Income
	There was no income tax expense allocated to foreign currency translation adjustments during the three or nine months ended September 30, 2012 or 2013.
	The change in accumulated other comprehensive income (loss) for the nine months ended September 30, 2013 was as follows:
	(In thousands)	Accumulated other comprehensive loss
	Balance at December 31, 2012	$	(8,089	)
	Foreign currency cumulative translation adjustment	(36		)
	Balance at September 30, 2013	$	(8,125	)

Segment_Information

Segment Information	9 Months Ended
	Sep. 30, 2013
Segment Reporting [Abstract]	'
Segment Information	'
	Segment Information
	We operate as one reportable segment based upon the financial information that our chief executive officer, who is the chief operating decision maker, regularly reviews to decide how to allocate resources and assess performance. We periodically review and align our internal reporting structure as our product and service offerings and our customer base expand in reach and presence to ensure our organization effectively serves the diverse and evolving Cloud Computing market. Since we operate in one reportable segment, all relevant financial information used to allocate resources and assess performance can be found in the consolidated financial statements.

Summary_of_Significant_Account

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Basis of Consolidation	'
	The consolidated financial statements include the accounts of Rackspace Hosting and our wholly-owned subsidiaries, which include, among others, Rackspace US, Inc., our domestic operating entity, and Rackspace Limited, our United Kingdom operating entity. Intercompany transactions and balances have been eliminated in consolidation.
Basis of Presentation	'
	The accompanying consolidated financial statements as of September 30, 2013, and for the three and nine months ended September 30, 2012 and 2013, are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and Rule 10-01 of Regulation S-X. Accordingly, they do not include all financial information and disclosures required by GAAP for complete financial statements, and certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. The unaudited interim consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include normal recurring adjustments, necessary for a fair statement of our financial position as of September 30, 2013, our results of operations for the three and nine months ended September 30, 2012 and 2013, and our cash flows for the nine months ended September 30, 2012 and 2013.
Reclassifications	'
	Certain reclassifications have been made to prior year balances in order to conform to the current year’s presentation. These include reclassifications within the Condensed Consolidated Statements of Comprehensive Income that we believe provide greater transparency and clarity about our costs and expenses.
Use of Estimates	'
	The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to accounts receivable and customer credits, property and equipment, fair values of intangible assets and goodwill, useful lives of intangible assets, fair value of share-based compensation, contingencies, and income taxes, among others. Whenever possible, we base our estimates and assumptions on historical experience. However, certain estimates require us to make assumptions about expected future cash flow, events and usage patterns that we cannot influence or control. Our judgments, assumptions and estimates are based upon facts and circumstances known to us when we prepare the financial statements and that we believe to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities or recording revenue and expenses in our financial statements. Changes in facts and circumstances may cause us to change our assumptions and estimates in future periods, and it is possible that actual results could differ from our estimates.
Business Combinations Policy	'
	The acquisitions were accounted for using the acquisition method, and the purchase prices were allocated based on the estimated fair values of the individual assets acquired and liabilities assumed at the date of acquisition. These estimates are subject to change within the measurement period.
Commitments and Contingencies Policy	'
	We have contingent liabilities resulting from various litigation, claims and commitments. We record accruals for loss contingencies when losses are considered probable and can be reasonably estimated. The amount that will ultimately be paid related to these matters may differ from the recorded accruals, and the timing of such payments is uncertain.
Share-based Compensation, Stock Options and Restricted Stock Policy	'
	The Company has granted equity awards to its employees and directors in the form of stock options and restricted stock. The exercise price of all stock options granted is not less than 100% of the fair market value of a share of common stock as of the date of grant. The stock options granted generally vest ratably over a four-year period or cliff-vest at the third anniversary date of the grant. Stock options assumed through acquisitions vest 25% the first year and ratably over the remaining periods. All stock options expire seven to ten years following the grant date. The restricted stock generally vests ratably over a four-year period. Certain key executives receive restricted stock grants that vest based on predetermined market and/or performance conditions.
Undistributed Earnings of Foreign Subsidiaries Policy	'
	The company has not recognized a deferred tax liability for undistributed earnings of its foreign subsidiaries because such earnings are considered indefinitely invested in a foreign country. We intend to reinvest these earnings in active non-U.S. business operations and do not currently intend to repatriate these earnings to fund U.S. operations. The determination of the amount of unrecognized deferred tax liability related to undistributed earnings is not practicable.
Segment Reporting Policy	'
	We operate as one reportable segment based upon the financial information that our chief executive officer, who is the chief operating decision maker, regularly reviews to decide how to allocate resources and assess performance. We periodically review and align our internal reporting structure as our product and service offerings and our customer base expand in reach and presence to ensure our organization effectively serves the diverse and evolving Cloud Computing market.

Company_Overview_Basis_of_Pres1

Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2013
Company Overview and Summary of Significant Accounting Policies [Abstract]	'
Prior Period Reclassification Adjustments	'
	The tables below summarize the amount by which each category in the Consolidated Statement of Comprehensive Income increased/(decreased) for each period:
		Three Months Ended				Nine Months Ended
		September 30, 2012				September 30, 2012
	(In thousands)	Reclassification Amount				Reclassification Amount
	Cost of revenue	$	12,617			$	37,978
	Research and development	$	15,563			$	39,794
	Sales and marketing	$	2,185			$	5,666
	General and administrative	$	(30,365	)		$	(83,438	)
		Year Ended
		December 31, 2011							December 31, 2012
	(In thousands)	Reclassification Amount			As Adjusted				Reclassification Amount			As Adjusted
	Cost of revenue	$	37,246		$	346,341			$	51,534		$	419,013
	Research and development	$	33,709		$	33,709			$	56,736		$	56,736
	Sales and marketing	$	4,669		$	131,174			$	8,064		$	166,172
	General and administrative	$	(75,624	)	$	194,957			$	(116,334	)	$	244,732
	We revised the amounts previously reported as Research and Development and General and Administrative costs for the three months ended March 31, 2012 and 2013 and the three and six months ended June 30, 2012 and 2013. We determined that certain internal projects did not meet the accounting definition of Research and Development costs, and such correcting amounts were reclassified to General and Administrative costs, as follows:
		Three Months Ended							Three Months Ended
		March 31, 2012							March 31, 2013
	(In thousands)	Reclassification Amount			As Adjusted				Reclassification Amount			As Adjusted
	Research and development	$	(2,605	)	$	10,842			$	(4,398	)	$	18,375
	General and administrative	$	2,605		$	57,911			$	4,398		$	67,477
		Three Months Ended							Three Months Ended
		June 30, 2012							June 30, 2013
	(In thousands)	Reclassification Amount			As Adjusted				Reclassification Amount			As Adjusted
	Research and development	$	(3,353	)	$	13,389			$	(3,560	)	$	23,216
	General and administrative	$	3,353		$	59,207			$	3,560		$	72,840
		Six Months Ended							Six Months Ended
		June 30, 2012							June 30, 2013
	(In thousands)	Reclassification Amount			As Adjusted				Reclassification Amount			As Adjusted
	Research and development	$	(5,958	)	$	24,231			$	(7,958	)	$	41,591
	General and administrative	$	5,958		$	117,118			$	7,958		$	140,317

Earnings_Per_Share_Tables

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2013
Earnings Per Share, Basic and Diluted [Abstract]	'
Computation of Basic and Diluted Earnings Per Share	'
	The following table sets forth the computation of basic and diluted earnings per share:
		Three Months Ended September 30,				Nine Months Ended September 30,
	(In thousands, except per share data)	2012		2013		2012		2013
	Basic net income per share:
	Net income	$	27,197	$	16,311	$	75,511	$	65,939
	Weighted average shares outstanding:
	Common stock	135,946		138,714		134,683		138,140
	Number of shares used in per share computations	135,946		138,714		134,683		138,140
	Earnings per share	$	0.2	$	0.12	$	0.56	$	0.48
	Diluted net income per share:
	Net income	$	27,197	$	16,311	$	75,511	$	65,939
	Weighted average shares outstanding:
	Common stock	135,946		138,714		134,683		138,140
	Stock options, awards and employee share purchase plan	5,528		4,829		6,111		4,559
	Number of shares used in per share computations	141,474		143,543		140,794		142,699
	Earnings per share	$	0.19	$	0.11	$	0.54	$	0.46

Cash_and_Cash_Equivalents_Tabl

Cash and Cash Equivalents (Tables)	9 Months Ended
	Sep. 30, 2013
Cash and Cash Equivalents [Abstract]	'
Schedule of Cash and Cash Equivalents	'
	Cash and cash equivalents consisted of:
	(In thousands)	December 31,		September 30,
		2012		2013
	Cash deposits	$	131,271	$	161,626
	Money market funds	160,790		108,369
	Cash and cash equivalents	$	292,061	$	269,995

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2013
Fair Value Disclosures [Abstract]	'
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	'
	Assets and liabilities measured at fair value on a recurring basis are summarized by level below. The table does not include assets and liabilities that are measured at historical costs or any other basis other than fair value.
			December 31, 2012
	(In thousands)		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs		Significant Unobservable Inputs		Total Assets/Liabilities at Fair Value
					(Level 2)		(Level 3)
	Assets:
	Money market funds (1)		$	160,790	$	—	$	—	$	160,790
	Rabbi trust (2)		520		—		—		520
	Total		$	161,310	$	—	$	—	$	161,310
	Liabilities:
	Deferred compensation (3)		$	410	$	—	$	—	$	410
	Total		$	410	$	—	$	—	$	410
			September 30, 2013
	(In thousands)		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs		Significant Unobservable Inputs		Total Assets/Liabilities at Fair Value
					(Level 2)		(Level 3)
	Assets:
	Money market funds (1)		$	108,369	$	—	$	—	$	108,369
	Rabbi trust (2)		773		—		—		773
	Total		$	109,142	$	—	$	—	$	109,142
	Liabilities:
	Deferred compensation (3)		$	570	$	—	$	—	$	570
	Total		$	570	$	—	$	—	$	570
	-1	Money market funds are classified in cash and cash equivalents.
	-2	Investments in marketable securities held in a Rabbi Trust associated with a non-qualified deferred compensation plan are classified in other non-current assets.
	-3	Obligations to pay benefits under a non-qualified deferred compensation plan are classified in other non-current liabilities.

Property_and_Equipment_net_Tab

Property and Equipment, net (Tables)	9 Months Ended
	Sep. 30, 2013
Property, Plant and Equipment [Abstract]	'
Property and Equipment	'
	Property and equipment consisted of:
	(Dollar amounts in thousands)	Estimated Useful Lives				December 31,			September 30,
						2012			2013
	Computers, software and equipment	1	-	5	years	$	1,140,772		$	1,401,718
	Furniture and fixtures	7	years			40,557			52,028
	Buildings and leasehold improvements	2	-	30	years	214,858			231,232
	Land					15,864			16,037
	Property and equipment, at cost					1,412,051			1,701,015
	Less accumulated depreciation and amortization					(738,274		)	(917,948		)
	Work in process					51,208			67,838
	Property and equipment, net					$	724,985		$	850,905

Business_Combinations_and_Good1

Business Combinations and Goodwill (Tables)	9 Months Ended
	Sep. 30, 2013
Business Combinations and Goodwill [Abstract]	'
Roll Forward of Goodwill Balance	'
	The following table provides a roll forward of our goodwill balance.
	(In thousands)
	Balance at December 31, 2012	$	68,742
	Acquisitions	8,089
	Balance at September 30, 2013	$	76,831

ShareBased_Compensation_Tables

Share-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Composition of equity awards outstanding	'
	The composition of the equity awards outstanding as of December 31, 2012 and September 30, 2013 was as follows:
		December 31,		September 30,
		2012		2013
	Restricted stock	2,800,230		3,614,592
	Stock options	9,032,512		10,789,145
	Total outstanding awards	11,832,742		14,403,737
Allocation of share-based compensation expense to income statement line items	'
	Share-based compensation expense was recognized as follows:
		Three Months Ended September 30,						Nine Months Ended September 30,
	(in thousands)	2012			2013			2012			2013
	Cost of revenue	$	2,499		$	3,453		$	6,833		$	8,707
	Research and development	1,379			2,306			3,619			5,647
	Sales and marketing	2,021			2,149			4,615			5,551
	General and administrative	6,519			9,051			15,235			22,552
	Pre-tax share-based compensation	12,418			16,959			30,302			42,457
	Less: Income tax benefit	(4,729		)	(6,578		)	(11,095		)	(15,500		)
	Total share-based compensation expense, net of tax	$	7,689		$	10,381		$	19,207		$	26,957
	The Company has made certain reclassifications to the prior period amounts above in order to conform to the current period's presentation. Refer to Note 1, "Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies," for more information about these reclassifications.

Comprehensive_Income_Tables

Comprehensive Income (Tables)	9 Months Ended
	Sep. 30, 2013
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]	'
Change in Accumulated Other Comprehensive Loss	'
	The change in accumulated other comprehensive income (loss) for the nine months ended September 30, 2013 was as follows:
	(In thousands)	Accumulated other comprehensive loss
	Balance at December 31, 2012	$	(8,089	)
	Foreign currency cumulative translation adjustment	(36		)
	Balance at September 30, 2013	$	(8,125	)

Company_Overview_Basis_of_Pres2

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

3 Months Ended

6 Months Ended

9 Months Ended

12 Months Ended

In Thousands, unless otherwise specified

Sep. 30, 2013

Jun. 30, 2013

Mar. 31, 2013

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Jun. 30, 2013

Jun. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Dec. 31, 2012

Dec. 31, 2011

As Adjusted

'

'

'

'

'

'

'

'

'

'

'

'

Cost of revenue

$127,404

'

'

$107,348

'

'

'

'

$358,672

$310,001

$419,013

$346,341

Research and development

23,773

23,216

18,375

15,563

13,389

10,842

41,591

24,231

65,364

39,794

56,736

33,709

Sales and marketing

50,869

'

'

41,109

'

'

'

'

152,952

122,705

166,172

131,174

General and administrative

78,075

72,840

67,477

62,663

59,207

57,911

140,317

117,118

218,392

179,781

244,732

194,957

Cost of revenue

'

'

'

'

'

'

'

'

'

'

'

'

Reclassification Amount

'

'

'

12,617

'

'

'

'

'

37,978

51,534

37,246

Research and development

'

'

'

'

'

'

'

'

'

'

'

'

Reclassification Amount

'

'

'

15,563

'

'

'

'

'

39,794

56,736

33,709

Research and development | Reclassifications made in Q3 2013

'

'

'

'

'

'

'

'

'

'

'

'

Reclassification Amount

'

-3,560

-4,398

'

-3,353

-2,605

-7,958

-5,958

'

'

'

'

Sales and marketing

'

'

'

'

'

'

'

'

'

'

'

'

Reclassification Amount

'

'

'

2,185

'

'

'

'

'

5,666

8,064

4,669

General and administrative

'

'

'

'

'

'

'

'

'

'

'

'

Reclassification Amount

'

'

'

-30,365

'

'

'

'

'

-83,438

-116,334

-75,624

General and administrative | Reclassifications made in Q3 2013

'

'

'

'

'

'

'

'

'

'

'

'

Reclassification Amount

'

$3,560

$4,398

'

$3,353

$2,605

$7,958

$5,958

'

'

'

'

Earnings_Per_Share_Details

Earnings Per Share (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Basic net income per share:	'	'	'	'
Net income	$16,311	$27,197	$65,939	$75,511
Weighted average shares outstanding:	'	'	'	'
Common stock	138,714,000	135,946,000	138,140,000	134,683,000
Number of shares used in per share computations	138,714,000	135,946,000	138,140,000	134,683,000
Earnings per share	$0.12	$0.20	$0.48	$0.56
Diluted net income per share:	'	'	'	'
Net income	$16,311	$27,197	$65,939	$75,511
Weighted average shares outstanding:	'	'	'	'
Common stock	138,714,000	135,946,000	138,140,000	134,683,000
Stock options, awards and employee share purchase plan	4,829,000	5,528,000	4,559,000	6,111,000
Number of shares used in per share computations	143,543,000	141,474,000	142,699,000	140,794,000
Earnings per share	$0.11	$0.19	$0.46	$0.54
Number of potential common shares excluded from the computation of dilutive earnings per share because the effect would have been anti-dilutive	3,900,000	1,500,000	2,800,000	1,100,000

Cash_and_Cash_Equivalents_Deta

Cash and Cash Equivalents (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011
In Thousands, unless otherwise specified
Cash and Cash Equivalents [Abstract]	'	'	'	'
Cash deposits	$161,626	$131,271	'	'
Money market funds	108,369	160,790	'	'
Cash and cash equivalents	$269,995	$292,061	$257,651	$159,856

Fair_Value_Measurements_Detail

Fair Value Measurements (Details) (USD $)	Sep. 30, 2013		Dec. 31, 2012
In Thousands, unless otherwise specified
Assets:	'		'
Money market funds	$108,369		$160,790
Fair Value, Measurements, Recurring | Level 1 - Quoted Prices in Active Markets for Identical Assets	'		'
Assets:	'		'
Money market funds	108,369	[1]	160,790	[1]
Rabbi trust	773	[2]	520	[2]
Total	109,142		161,310
Liabilities:	'		'
Deferred compensation	570	[3]	410	[3]
Total	570		410
Fair Value, Measurements, Recurring | Level 2 - Significant Other Observable Inputs	'		'
Assets:	'		'
Money market funds	0	[1]	0	[1]
Rabbi trust	0	[2]	0	[2]
Total	0		0
Liabilities:	'		'
Deferred compensation	0	[3]	0	[3]
Total	0		0
Fair Value, Measurements, Recurring | Level 3 - Significant Unobservable Inputs	'		'
Assets:	'		'
Money market funds	0	[1]	0	[1]
Rabbi trust	0	[2]	0	[2]
Total	0		0
Liabilities:	'		'
Deferred compensation	0	[3]	0	[3]
Total	0		0
Fair Value, Measurements, Recurring | Total Assets/Liabilities at Fair Value	'		'
Assets:	'		'
Money market funds	108,369	[1]	160,790	[1]
Rabbi trust	773	[2]	520	[2]
Total	109,142		161,310
Liabilities:	'		'
Deferred compensation	570	[3]	410	[3]
Total	$570		$410
[1]	Money market funds are classified in cash and cash equivalents.
[2]	Investments in marketable securities held in a Rabbi Trust associated with a non-qualified deferred compensation plan are classified in other non-current assets.
[3]	Obligations to pay benefits under a non-qualified deferred compensation plan are classified in other non-current liabilities.

Property_and_Equipment_net_Det

Property and Equipment, net (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Property, Plant and Equipment, Net, by Type	'	'	'	'	'
Property and equipment, at cost	$1,701,015,000	'	$1,701,015,000	'	$1,412,051,000
Less accumulated depreciation and amortization	-917,948,000	'	-917,948,000	'	-738,274,000
Work in process	67,838,000	'	67,838,000	'	51,208,000
Total property and equipment, net	850,905,000	'	850,905,000	'	724,985,000
Property Plant and Equipment Income Statement Disclosures	'	'	'	'	'
Depreciation and leasehold amortization expense	78,100,000	61,900,000	218,000,000	174,200,000	'
Capitalized interest	0	0	0	0	'
Computers, software and equipment	'	'	'	'	'
Property, Plant and Equipment, Net, by Type	'	'	'	'	'
Property and equipment, at cost	1,401,718,000	'	1,401,718,000	'	1,140,772,000
Furniture and fixtures	'	'	'	'	'
Property, Plant and Equipment, Net, by Type	'	'	'	'	'
Property and equipment, estimated useful life	'	'	'7 years	'	'
Property and equipment, at cost	52,028,000	'	52,028,000	'	40,557,000
Buildings and leasehold improvements	'	'	'	'	'
Property, Plant and Equipment, Net, by Type	'	'	'	'	'
Property and equipment, at cost	231,232,000	'	231,232,000	'	214,858,000
Land	'	'	'	'	'
Property, Plant and Equipment, Net, by Type	'	'	'	'	'
Property and equipment, at cost	16,037,000	'	16,037,000	'	15,864,000
Office facility build outs	'	'	'	'	'
Property, Plant and Equipment, Net, by Type	'	'	'	'	'
Work in process	24,200,000	'	24,200,000	'	28,400,000
Data center build outs	'	'	'	'	'
Property, Plant and Equipment, Net, by Type	'	'	'	'	'
Work in process	4,800,000	'	4,800,000	'	2,800,000
Capitalized software and other projects	'	'	'	'	'
Property, Plant and Equipment, Net, by Type	'	'	'	'	'
Work in process	$38,800,000	'	$38,800,000	'	$20,000,000
Minimum | Computers, software and equipment	'	'	'	'	'
Property, Plant and Equipment, Net, by Type	'	'	'	'	'
Property and equipment, estimated useful life	'	'	'1 year	'	'
Minimum | Buildings and leasehold improvements	'	'	'	'	'
Property, Plant and Equipment, Net, by Type	'	'	'	'	'
Property and equipment, estimated useful life	'	'	'2 years	'	'
Maximum | Computers, software and equipment	'	'	'	'	'
Property, Plant and Equipment, Net, by Type	'	'	'	'	'
Property and equipment, estimated useful life	'	'	'5 years	'	'
Maximum | Buildings and leasehold improvements	'	'	'	'	'
Property, Plant and Equipment, Net, by Type	'	'	'	'	'
Property and equipment, estimated useful life	'	'	'30 years	'	'

Business_Combinations_and_Good2

Business Combinations and Goodwill (Details 1) - Business acquisitions (USD $)	9 Months Ended
	Sep. 30, 2013
Goodwill Roll Forward	'
Balance at December 31, 2012	$68,742,000
Acquisitions	8,089,000
Balance at September 30, 2013	76,831,000
Companies Acquired in Current Period	'
Business Acquisitions	'
Number of companies acquired during the period	2
Business Acquisitions, Consideration Transferred	'
Total cash and equity consideration transferred for businesses acquired	11,500,000
Business Acquisitions, Purchase Price Allocation	'
Amount of purchase price allocated to goodwill	8,100,000
Goodwill deductible for tax purposes	0
Amount of purchase price allocated to acquired intangible assets	5,100,000
Amount of purchase price allocated to other net liabilities assumed	1,700,000
Companies Acquired in Previous Periods	'
Business Acquisitions, Consideration Transferred	'
Payments made during period related to previous acquisitions	1,400,000
Fair value of remaining liability to former owners of acquirees	$600,000

Business_Combinations_and_Good3

Business Combinations and Goodwill (Details 2) - Intangible assets acquired as part of business combinations (Companies Acquired in Current Period)	9 Months Ended
	Sep. 30, 2013
Companies Acquired in Current Period	'
Acquired Intangible Assets	'
Weighted-average useful life of intangible assets acquired	'3 years 2 months 12 days

Contingencies_Details

Contingencies (Details) (Plaintiff - Benjamin E. Rodriguez)	9 Months Ended
	Sep. 30, 2013
Plaintiff - Benjamin E. Rodriguez	'
Legal Proceedings	'
Lawsuit Filing Date	'October 22, 2008
Name of Plaintiff	'Benjamin E. Rodriguez D/B/A Management and Business Advisors
Name of Defendant	'Rackspace Hosting, Inc. and Graham Weston
Domicile of Litigation	'37th District Court in Bexar County Texas
Allegations	'breach of an oral agreement to issue Mr. Rodriguez a 1% interest in our stock in the form of options or warrants for compensation for services he was engaged to perform for us
Management's Assessment and Process	'We believe that the amount or range of reasonably possible loss in this case will not have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows.

ShareBased_Compensation_Detail

Share-Based Compensation (Details 1) - Information by Type of Share-Based Payment Award	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013
			Restricted Stock	Stock Options	Stock Options	Stock Options	Stock Options	Stock options assumed through acquisitions	Employee Stock Purchase Plan	Employee Stock Purchase Plan	Employee Stock Purchase Plan
					Minimum	Minimum	Maximum		Maximum	Maximum	Maximum
						Grant Date				Enrollment Date	Purchase Date
Share-Based Compensation	'	'	'	'	'	'	'	'	'	'	'
Restricted stock	3,614,592	2,800,230	'	'	'	'	'	'	'	'	'
Stock options	10,789,145	9,032,512	'	'	'	'	'	'	'	'	'
Total outstanding awards	14,403,737	11,832,742	'	'	'	'	'	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award, General Disclosures	'	'	'	'	'	'	'	'	'	'	'
Purchase price of stock expressed as a percentage of its fair market value	'	'	'	'	'	100.00%	'	'	'	85.00%	85.00%
Award vesting period	'	'	'4 years	'4 years	'	'	'	'	'	'	'
Percentage of stock award that vests in the first year after grant	'	'	'	'	'	'	'	25.00%	'	'	'
Term of share-based compensation awards	'	'	'	'	'7 years	'	'10 years	'	'24 months	'	'

ShareBased_Compensation_Detail1

Share-Based Compensation (Details 2) - Share-Based Compensation Expense (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Allocation of share-based compensation expense to income statement line items	'	'	'	'
Pre-tax share-based compensation	$16,959,000	$12,418,000	$42,457,000	$30,302,000
Less: Income tax benefit	-6,578,000	-4,729,000	-15,500,000	-11,095,000
Total share-based compensation expense, net of tax	10,381,000	7,689,000	26,957,000	19,207,000
Share-Based Compensation Expense, Aggregate Disclosures	'	'	'	'
Total unrecognized compensation cost related to restricted stock, options and the ESPP ($)	196,500,000	'	196,500,000	'
Remaining weighted average period over which the unrecognized compensation cost related to restricted stock, options and the ESPP will be amortized on a straight line basis	'	'	'2 years 6 months	'
Cost of revenue	'	'	'	'
Allocation of share-based compensation expense to income statement line items	'	'	'	'
Pre-tax share-based compensation	3,453,000	2,499,000	8,707,000	6,833,000
Research and development	'	'	'	'
Allocation of share-based compensation expense to income statement line items	'	'	'	'
Pre-tax share-based compensation	2,306,000	1,379,000	5,647,000	3,619,000
Sales and marketing	'	'	'	'
Allocation of share-based compensation expense to income statement line items	'	'	'	'
Pre-tax share-based compensation	2,149,000	2,021,000	5,551,000	4,615,000
General and administrative	'	'	'	'
Allocation of share-based compensation expense to income statement line items	'	'	'	'
Pre-tax share-based compensation	$9,051,000	$6,519,000	$22,552,000	$15,235,000

Taxes_Details

Taxes (Details) (USD $)	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
Deferred tax liability for undistributed earnings of foreign subsidiaries	$0

Comprehensive_Income_Details

Comprehensive Income (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Other Comprehensive Income (Loss), Tax	'	'	'	'
Income tax expense allocated to foreign currency translation adjustments	$0	$0	$0	$0
Accumulated Other Comprehensive Income (Loss)	'	'	'	'
Balance at December 31, 2012	'	'	-8,089,000	'
Foreign currency cumulative translation adjustment	11,893,000	5,853,000	-36,000	6,830,000
Balance at September 30, 2013	($8,125,000)	'	($8,125,000)	'

Segment_Information_Details

Segment Information (Details)	9 Months Ended
	Sep. 30, 2013
	segments
Segment Reporting [Abstract]	'
Number of Reportable Segments	1