Selected Consolidated Financial Statements of Parent, Guarantors, Canada Company and Non-Guarantors

The following data summarizes the consolidating results of IMI on the equity method of accounting as of December 31, 2014 and March 31, 2015 and for the three months ended March 31, 2014 and 2015 and are prepared on the same basis as the consolidated financial statements.

The Parent Notes, CAD Notes and GBP Notes are guaranteed by the subsidiaries referred to below as the Guarantors. These subsidiaries are 100% owned by IMI. The guarantees are full and unconditional, as well as joint and several.

Additionally, IMI and the Guarantors guarantee the CAD Notes, which were issued by Canada Company, and the GBP Notes, which were issued by IME. Canada Company and IME do not guarantee the Parent Notes. The subsidiaries that do not guarantee the Parent Notes, the CAD Notes and the GBP Notes, including IME and the Special Purpose Subsidiaries but excluding Canada Company, are referred to below as the Non-Guarantors.

In the normal course of business we periodically change the ownership structure of our subsidiaries to meet the requirements of our business. In the event of such changes, we recast the prior period financial information within this footnote to conform to the current period presentation in the period such changes occur. Generally, these changes do not alter the designation of the underlying subsidiaries as Guarantors or Non-Guarantors. However, they may change whether the underlying subsidiary is owned by the Parent, a Guarantor, Canada Company or a Non-Guarantor. If such a change occurs, the amount of investment in subsidiaries in the below consolidated balance sheets and equity in the earnings (losses) of subsidiaries, net of tax in the below consolidated statements of operations with respect to the relevant Parent, Guarantors, Canada Company, Non-Guarantors and Eliminations columns also would change.

In March 2015, we entered into the Accounts Receivable Securitization Program, which is described more fully in Note 4. The Special Purpose Subsidiaries, which were established in conjunction with the Accounts Receivable Securitization Program, are included in the Non-Guarantors column in the below consolidated balance sheet, consolidated statement of operations and consolidated statement of cash flows from that date forward. As a result of the Accounts Receivable Securitization Program, certain of our Guarantors sold substantially all of their United States accounts receivable balances to the Special Purpose Subsidiaries. As of March 31, 2015, this resulted in a decrease in accounts receivable, an increase in intercompany receivable and a decrease in long-term debt related to our Guarantors and a corresponding increase in accounts receivable, an increase in intercompany payable and an increase in long-term debt related to our Non-Guarantors. There was no material impact to the Guarantors and Non-Guarantors columns of the below consolidated statement of operations for the three months ended March 31, 2015. Additionally, the Accounts Receivable Securitization Program resulted in increased financing cash flow activity for our Non-Guarantor subsidiaries for the three months ended March 31, 2015, as the proceeds from borrowings under the Accounts Receivable Securitization Program were used to repay intercompany loans with certain of our Guarantor subsidiaries, which resulted in increased cash flows from investing activities for our Guarantor subsidiaries for the three months ended March 31, 2015.

CONSOLIDATED BALANCE SHEETS



	December 31, 2014
	Parent		Guarantors		Canada Company		Non- Guarantors		Eliminations			Consolidated
Assets
Current Assets:
Cash and Cash Equivalents	$	2,399	$	4,713	$	4,979	$	113,842	$	—		$	125,933
Restricted Cash	33,860		—		—		—		—			33,860
Accounts Receivable	—		361,330		37,137		205,798		—			604,265
Intercompany Receivable	—		586,725		—		—		(586,725		)	—
Other Current Assets	153		88,709		2,925		61,908		(34		)	153,661
Total Current Assets	36,412		1,041,477		45,041		381,548		(586,759		)	917,719
Property, Plant and Equipment, Net	840		1,580,337		160,977		808,573		—			2,550,727
Other Assets, Net:
Long-term Notes Receivable from Affiliates and Intercompany Receivable	2,851,651		245		2,448		—		(2,854,344		)	—
Investment in Subsidiaries	917,170		656,877		30,751		93,355		(1,698,153		)	—
Goodwill	—		1,611,957		180,342		631,484		—			2,423,783
Other	31,108		375,082		26,672		245,251		—			678,113
Total Other Assets, Net	3,799,929		2,644,161		240,213		970,090		(4,552,497		)	3,101,896
Total Assets	$	3,837,181	$	5,265,975	$	446,231	$	2,160,211	$	(5,139,256	)	$	6,570,342
Liabilities and Equity
Intercompany Payable	$	505,083	$	—	$	3,564	$	78,078	$	(586,725	)	$	—
Current Portion of Long-term Debt	—		24,955		—		27,174		(34		)	52,095
Total Other Current Liabilities	60,097		470,122		35,142		239,280		—			804,641
Long-term Debt, Net of Current Portion	2,414,646		908,431		245,861		1,042,498		—			4,611,436
Long-term Notes Payable to Affiliates and Intercompany Payable	1,000		2,851,384		—		1,960		(2,854,344		)	—
Other Long-term Liabilities	—		115,789		37,558		78,868		—			232,215
Commitments and Contingencies (See Note 7)
Total Iron Mountain Incorporated Stockholders' Equity	856,355		895,294		124,106		678,753		(1,698,153		)	856,355
Noncontrolling Interests	—		—		—		13,600		—			13,600
Total Equity	856,355		895,294		124,106		692,353		(1,698,153		)	869,955
Total Liabilities and Equity	$	3,837,181	$	5,265,975	$	446,231	$	2,160,211	$	(5,139,256	)	$	6,570,342

CONSOLIDATED BALANCE SHEETS (Continued)



	March 31, 2015
	Parent		Guarantors		Canada Company		Non- Guarantors		Eliminations			Consolidated
Assets
Current Assets:
Cash and Cash Equivalents	$	—	$	7,395	$	7,120	$	105,090	$	—		$	119,605
Restricted Cash	20,000		—		—		—		—			20,000
Accounts Receivable	—		14,842		33,975		541,209		—			590,026
Intercompany Receivable	—		857,050		—		—		(857,050		)	—
Other Current Assets	573		93,214		3,043		61,041		(29		)	157,842
Total Current Assets	20,573		972,501		44,138		707,340		(857,079		)	887,473
Property, Plant and Equipment, Net	795		1,580,203		147,886		747,918		—			2,476,802
Other Assets, Net:
Long-term Notes Receivable from Affiliates and Intercompany Receivable	2,919,207		1,000		2,234		—		(2,922,441		)	—
Investment in Subsidiaries	867,150		607,661		28,066		91,633		(1,594,510		)	—
Goodwill	—		1,612,151		165,582		580,828		—			2,358,561
Other	30,145		375,615		24,370		218,488		—			648,618
Total Other Assets, Net	3,816,502		2,596,427		220,252		890,949		(4,516,951		)	3,007,179
Total Assets	$	3,837,870	$	5,149,131	$	412,276	$	2,346,207	$	(5,374,030	)	$	6,371,454
Liabilities and Equity
Intercompany Payable	$	658,287	$	—	$	3,292	$	195,471	$	(857,050	)	$	—
Current Portion of Long-term Debt	—		23,254		—		31,258		(29		)	54,483
Total Other Current Liabilities	55,930		394,054		26,613		189,251		—			665,848
Long-term Debt, Net of Current Portion	2,379,798		846,299		227,442		1,213,820		—			4,667,359
Long-term Notes Payable to Affiliates and Intercompany Payable	1,000		2,921,441		—		—		(2,922,441		)	—
Other Long-term Liabilities	—		118,005		35,230		74,027		—			227,262
Commitments and Contingencies (See Note 7)
Total Iron Mountain Incorporated Stockholders' Equity	742,855		846,078		119,699		628,733		(1,594,510		)	742,855
Noncontrolling Interests	—		—		—		13,647		—			13,647
Total Equity	742,855		846,078		119,699		642,380		(1,594,510		)	756,502
Total Liabilities and Equity	$	3,837,870	$	5,149,131	$	412,276	$	2,346,207	$	(5,374,030	)	$	6,371,454

CONSOLIDATED STATEMENTS OF OPERATIONS



	Three Months Ended March 31, 2014
	Parent			Guarantors			Canada Company			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage Rental	$	—		$	300,329		$	30,411		$	128,149		$	—		$	458,889
Service	—			186,430			16,150			108,657			—			311,237
Intercompany Service	—			—			—			17,358			(17,358		)	—
Total Revenues	—			486,759			46,561			254,164			(17,358		)	770,126
Operating Expenses:
Cost of Sales (Excluding Depreciation and Amortization)	—			202,920			6,242			125,983			—			335,145
Intercompany Service Cost of Sales	—			—			17,358			—			(17,358		)	—
Selling, General and Administrative	28			146,578			3,753			64,421			—			214,780
Depreciation and Amortization	77			52,640			2,999			30,717			—			86,433
Loss (Gain) on Disposal/Write-down of Property, Plant and Equipment (Excluding Real Estate), net	—			929			1			222			—			1,152
Total Operating Expenses	105			403,067			30,353			221,343			(17,358		)	637,510
Operating (Loss) Income	(105		)	83,692			16,208			32,821			—			132,616
Interest Expense (Income), Net	48,165			(4,852		)	9,547			9,452			—			62,312
Other (Income) Expense, Net	(1,280		)	1,507			(20		)	5,110			—			5,317
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes and (Gain) Loss on Sale of Real Estate	(46,990		)	87,037			6,681			18,259			—			64,987
Provision (Benefit) for Income Taxes	—			23,803			2,538			3,393			—			29,734
(Gain) Loss on Sale of Real Estate, Net of Tax	—			(197		)	—			(7,271		)	—			(7,468		)
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	(88,657		)	(24,826		)	(1,954		)	(4,143		)	119,580			—
Income (Loss) from Continuing Operations	41,667			88,257			6,097			26,280			(119,580		)	42,721
(Loss) Income from Discontinued Operations, Net of Tax	—			(625		)	—			13			—			(612		)
Net Income (Loss)	41,667			87,632			6,097			26,293			(119,580		)	42,109
Less: Net Income (Loss) Attributable to Noncontrolling Interest	—			—			—			442			—			442
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	41,667		$	87,632		$	6,097		$	25,851		$	(119,580	)	$	41,667
Net Income (Loss)	$	41,667		$	87,632		$	6,097		$	26,293		$	(119,580	)	$	42,109
Other Comprehensive Income (Loss):
Foreign Currency Translation Adjustments	88			741			(2,618		)	3,577			—			1,788
Equity in Other Comprehensive Income (Loss) of Subsidiaries	1,589			(71		)	(1,160		)	(2,618		)	2,260			—
Total Other Comprehensive Income (Loss)	1,677			670			(3,778		)	959			2,260			1,788
Comprehensive Income (Loss)	43,344			88,302			2,319			27,252			(117,320		)	43,897
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	—			—			—			553			—			553
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$	43,344		$	88,302		$	2,319		$	26,699		$	(117,320	)	$	43,344

CONSOLIDATED STATEMENTS OF OPERATIONS (Continued)



	Three Months Ended March 31, 2015
	Parent			Guarantors			Canada Company			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage Rental	$	—		$	304,592		$	30,868		$	123,412		$	—		$	458,872
Service	—			180,865			16,557			92,992			—			290,414
Intercompany Service	—			352			—			16,419			(16,771		)	—
Total Revenues	—			485,809			47,425			232,823			(16,771		)	749,286
Operating Expenses:
Cost of Sales (Excluding Depreciation and Amortization)	—			196,661			7,165			117,828			—			321,654
Intercompany Service Cost of Sales	—			—			16,419			352			(16,771		)	—
Selling, General and Administrative	73			132,192			4,167			59,982			—			196,414
Depreciation and Amortization	46			55,403			3,052			27,450			—			85,951
Loss (Gain) on Disposal/Write-down of Property, Plant and Equipment (Excluding Real Estate), net	—			322			—			11			—			333
Total Operating Expenses	119			384,578			30,803			205,623			(16,771		)	604,352
Operating (Loss) Income	(119		)	101,231			16,622			27,200			—			144,934
Interest Expense (Income), Net	39,170			(6,677		)	8,203			24,202			—			64,898
Other (Income) Expense, Net	(2,038		)	1,383			(127		)	23,131			—			22,349
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes and (Gain) Loss on Sale of Real Estate	(37,251		)	106,525			8,546			(20,133		)	—			57,687
Provision (Benefit) for Income Taxes	—			9,702			3,063			3,183			—			15,948
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	(78,347		)	18,740			(1,059		)	(5,483		)	66,149			—
Net Income (Loss)	41,096			78,083			6,542			(17,833		)	(66,149		)	41,739
Less: Net Income (Loss) Attributable to Noncontrolling Interests	—			—			—			643			—			643
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	41,096		$	78,083		$	6,542		$	(18,476	)	$	(66,149	)	$	41,096
Net Income (Loss)	$	41,096		$	78,083		$	6,542		$	(17,833	)	$	(66,149	)	$	41,739
Other Comprehensive Income (Loss):
Foreign Currency Translation Adjustments	4,930			—			(7,940		)	(53,165		)	—			(56,175		)
Market Value Adjustments for Securities	—			23			—			—			—			23
Equity in Other Comprehensive (Loss) Income of Subsidiaries	(60,981		)	(60,896		)	(3,007		)	(7,940		)	132,824			—
Total Other Comprehensive (Loss) Income	(56,051		)	(60,873		)	(10,947		)	(61,105		)	132,824			(56,152		)
Comprehensive (Loss) Income	(14,955		)	17,210			(4,405		)	(78,938		)	66,675			(14,413		)
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	—			—			—			542			—			542
Comprehensive (Loss) Income Attributable to Iron Mountain Incorporated	$	(14,955	)	$	17,210		$	(4,405	)	$	(79,480	)	$	66,675		$	(14,955	)

CONSOLIDATED STATEMENTS OF CASH FLOWS



	Three Months Ended March 31, 2014
	Parent			Guarantors			Canada Company			Non- Guarantors			Eliminations			Consolidated
Cash Flows from Operating Activities:
Cash Flows from Operating Activities—Continuing Operations	$	(68,972	)	$	79,555		$	10,421		$	34,637		$	—		$	55,641
Cash Flows from Investing Activities:
Capital expenditures	—			(71,520		)	(2,865		)	(33,471		)	—			(107,856		)
Cash paid for acquisitions, net of cash acquired	—			916			—			(31,697		)	—			(30,781		)
Intercompany loans to subsidiaries	377,202			61,895			—			—			(439,097		)	—
Investment in subsidiaries	(11,695		)	(11,695		)	—			—			23,390			—
Additions to customer relationship and acquisition costs	—			(7,341		)	(280		)	(537		)	—			(8,158		)
Proceeds from sales of property and equipment and other, net (including real estate)	—			1,441			64			16,387			—			17,892
Cash Flows from Investing Activities—Continuing Operations	365,507			(26,304		)	(3,081		)	(49,318		)	(415,707		)	(128,903		)
Cash Flows from Financing Activities:
Repayment of revolving credit and term loan facilities and other debt	—			(2,171,941		)	(252,107		)	(30,643		)	—			(2,454,691		)
Proceeds from revolving credit and term loan facilities and other debt	—			2,480,901			242,480			152,666			—			2,876,047
Early retirement of senior subordinated notes	(247,275		)	—			—			—			—			(247,275		)
Debt (repayment to) financing and equity contribution from (distribution to) noncontrolling interests, net	—			—			—			(2,317		)	—			(2,317		)
Intercompany loans from parent	—			(376,788		)	8,640			(70,949		)	439,097			—
Equity contribution from parent	—			11,695			—			11,695			(23,390		)	—
Parent cash dividends	(52,735		)	—			—			—			—			(52,735		)
Proceeds from exercise of stock options and employee stock purchase plan	2,417			—			—			—			—			2,417
Excess tax (deficiency) benefits from stock-based compensation	(185		)	—			—			—			—			(185		)
Payment of debt financing costs and stock issuance costs	—			—			(12		)	(410		)	—			(422		)
Cash Flows from Financing Activities—Continuing Operations	(297,778		)	(56,133		)	(999		)	60,042			415,707			120,839
Effect of exchange rates on cash and cash equivalents	—			—			136			1,667			—			1,803
(Decrease) Increase in cash and cash equivalents	(1,243		)	(2,882		)	6,477			47,028			—			49,380
Cash and cash equivalents, beginning of period	1,243			10,366			1,094			107,823			—			120,526
Cash and cash equivalents, end of period	$	—		$	7,484		$	7,571		$	154,851		$	—		$	169,906

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)



	Three Months Ended March 31, 2015
	Parent			Guarantors			Canada Company			Non- Guarantors			Eliminations			Consolidated
Cash Flows from Operating Activities:
Cash Flows from Operating Activities—Continuing Operations	$	(45,978	)	$	44,864		$	3,636		$	2,990		$	—		$	5,512
Cash Flows from Investing Activities:
Capital expenditures	—			(46,452		)	(3,774		)	(24,550		)	—			(74,776		)
Cash paid for acquisitions, net of cash acquired	—			(684		)	106			(5,853		)	—			(6,431		)
Intercompany loans to subsidiaries	132,692			79,946			—			—			(212,638		)	—
Investment in subsidiaries	(5,000		)	(5,000		)	—			—			10,000			—
Increase in restricted cash	13,860			—			—			—			—			13,860
Additions to customer relationship and acquisition costs	—			(7,990		)	(668		)	(585		)	—			(9,243		)
Proceeds from sales of property and equipment and other, net (including real estate)	—			160			6			244			—			410
Cash Flows from Investing Activities—Continuing Operations	141,552			19,980			(4,330		)	(30,744		)	(202,638		)	(76,180		)
Cash Flows from Financing Activities:
Repayment of revolving credit and term loan facilities and other debt	—			(1,894,836		)	(159,145		)	(228,280		)	—			(2,282,261		)
Proceeds from revolving credit and term loan facilities and other debt	—			1,823,900			161,962			464,541			—			2,450,403
Debt (repayment to) financing and equity (distribution to) contribution from noncontrolling interests, net	—			—			—			(388		)	—			(388		)
Intercompany loans from parent	—			4,638			79			(217,355		)	212,638			—
Equity contribution from parent	—			5,000			—			5,000			(10,000		)	—
Parent cash dividends	(102,539		)	—			—			—			—			(102,539		)
Proceeds from exercise of stock options and employee stock purchase plan	4,364			—			—			—			—			4,364
Excess tax benefits (deficiency) from stock-based compensation	231			—			—			—			—			231
Payment of debt financing costs and stock issuance costs	(29		)	(864		)	—			(54		)	—			(947		)
Cash Flows from Financing Activities—Continuing Operations	(97,973		)	(62,162		)	2,896			23,464			202,638			68,863
Effect of exchange rates on cash and cash equivalents	—			—			(61		)	(4,462		)	—			(4,523		)
(Decrease) Increase in cash and cash equivalents	(2,399		)	2,682			2,141			(8,752		)	—			(6,328		)
Cash and cash equivalents, beginning of period	2,399			4,713			4,979			113,842			—			125,933
Cash and cash equivalents, end of period	$	—		$	7,395		$	7,120		$	105,090		$	—		$	119,605