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

6 Months Ended

Jun. 30, 2015

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

Schedule of selected consolidated Balance sheet statements of Parent, Guarantors, Canada Company and Non-Guarantors

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 8)
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)

	June 30, 2015
	Parent		Guarantors		Canada Company		Non- Guarantors		Eliminations			Consolidated
Assets
Current Assets:
Cash and Cash Equivalents	$	1,473	$	3,455	$	6,877	$	105,293	$	—		$	117,098
Accounts Receivable	—		19,114		37,858		539,280		—			596,252
Intercompany Receivable	—		998,589		—		—		(998,589		)	—
Other Current Assets	6,362		87,872		3,621		63,553		(31		)	161,377
Total Current Assets	7,835		1,109,030		48,356		708,126		(998,620		)	874,727
Property, Plant and Equipment, Net	751		1,565,978		151,969		774,315		—			2,493,013
Other Assets, Net:
Long-term Notes Receivable from Affiliates and Intercompany Receivable	3,005,347		1,000		1,417		—		(3,007,764		)	—
Investment in Subsidiaries	875,518		615,258		29,929		96,812		(1,617,517		)	—
Goodwill	—		1,615,448		171,194		602,055		—			2,388,697
Other	28,571		383,904		27,588		226,077		—			666,140
Total Other Assets, Net	3,909,436		2,615,610		230,128		924,944		(4,625,281		)	3,054,837
Total Assets	$	3,918,022	$	5,290,618	$	430,453	$	2,407,385	$	(5,623,901	)	$	6,422,577
Liabilities and Equity
Intercompany Payable	$	762,351	$	—	$	4,201	$	232,037	$	(998,589	)	$	—
Current Portion of Long-term Debt	—		36,113		—		34,153		(31		)	70,235
Total Other Current Liabilities	55,595		397,531		27,557		201,217		—			681,900
Long-term Debt, Net of Current Portion	2,390,289		884,663		232,476		1,211,487		—			4,718,915
Long-term Notes Payable to Affiliates and Intercompany Payable	1,000		3,006,764		—		—		(3,007,764		)	—
Other Long-term Liabilities	—		111,872		39,478		77,952		—			229,302
Commitments and Contingencies (See Note 8)
Total Iron Mountain Incorporated Stockholders' Equity	708,787		853,675		126,741		637,101		(1,617,517		)	708,787
Noncontrolling Interests	—		—		—		13,438		—			13,438
Total Equity	708,787		853,675		126,741		650,539		(1,617,517		)	722,225
Total Liabilities and Equity	$	3,918,022	$	5,290,618	$	430,453	$	2,407,385	$	(5,623,901	)	$	6,422,577

Schedule of selected consolidated Income statements of Parent, Guarantors, Canada Company and Non-Guarantors

CONSOLIDATED STATEMENTS OF OPERATIONS (Continued)

	Six Months Ended June 30, 2014
	Parent			Guarantors			Canada Company			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage Rental	$	—		$	602,012		$	61,706		$	262,060		$	—		$	925,778
Service	—			377,043			33,741			220,456			—			631,240
Intercompany Service	—			—			—			32,552			(32,552		)	—
Total Revenues	—			979,055			95,447			515,068			(32,552		)	1,557,018
Operating Expenses:
Cost of Sales (Excluding Depreciation and Amortization)	—			399,248			12,564			260,294			—			672,106
Selling, General and Administrative	64			289,276			6,843			132,404			—			428,587
Intercompany Service Charges	—			—			32,552			—			(32,552		)	—
Depreciation and Amortization	133			104,962			5,978			64,301			—			175,374
Loss (Gain) on Disposal/Write-down of Property, Plant and Equipment (Excluding Real Estate), net	—			832			1			212			—			1,045
Total Operating Expenses	197			794,318			57,938			457,211			(32,552		)	1,277,112
Operating (Loss) Income	(197		)	184,737			37,509			57,857			—			279,906
Interest Expense (Income), Net	94,839			(7,856		)	17,383			20,147			—			124,513
Other Expense (Income), Net	6,825			7,721			(20		)	(14,047		)	—			479
(Loss) Income from Continuing Operations Before (Benefit) Provision for Income Taxes and (Gain) Loss on Sale of Real Estate	(101,861		)	184,872			20,146			51,757			—			154,914
(Benefit) Provision for Income Taxes	—			(169,328		)	6,110			10,177			—			(153,041		)
(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	(415,165		)	(60,060		)	(641		)	(14,036		)	489,902			—
Income (Loss) from Continuing Operations	313,304			414,457			14,677			62,887			(489,902		)	315,423
(Loss) Income from Discontinued Operations, Net of Tax	—			(960		)	—			22			—			(938		)
Net Income (Loss)	313,304			413,497			14,677			62,909			(489,902		)	314,485
Less: Net Income (Loss) Attributable to Noncontrolling Interests	—			—			—			1,181			—			1,181
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	313,304		$	413,497		$	14,677		$	61,728		$	(489,902	)	$	313,304
Net Income (Loss)	$	313,304		$	413,497		$	14,677		$	62,909		$	(489,902	)	$	314,485
Other Comprehensive Income (Loss):
Foreign Currency Translation Adjustments	751			84			(437		)	5,916			—			6,314
Market Value Adjustments for Securities	—			548			—			—			—			548
Equity in Other Comprehensive Income (Loss) of Subsidiaries	5,574			4,045			503			(437		)	(9,685		)	—
Total Other Comprehensive Income (Loss)	6,325			4,677			66			5,479			(9,685		)	6,862
Comprehensive Income (Loss)	319,629			418,174			14,743			68,388			(499,587		)	321,347
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	—			—			—			1,718			—			1,718
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$	319,629		$	418,174		$	14,743		$	66,670		$	(499,587	)	$	319,629

CONSOLIDATED STATEMENTS OF OPERATIONS (Continued)

	Six Months Ended June 30, 2015
	Parent			Guarantors			Canada Company			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage Rental	$	—		$	610,505		$	61,672		$	247,904		$	—		$	920,081
Service	—			370,133			32,665			186,141			—			588,939
Intercompany Service	—			1,407			—			38,545			(39,952		)	—
Total Revenues	—			982,045			94,337			472,590			(39,952		)	1,509,020
Operating Expenses:
Cost of Sales (Excluding Depreciation and Amortization)	—			392,741			13,807			241,389			—			647,937
Selling, General and Administrative	97			281,243			7,962			122,997			—			412,299
Intercompany Service Charges	—			6,400			32,145			1,407			(39,952		)	—
Depreciation and Amortization	91			111,763			6,217			55,429			—			173,500
Loss (Gain) on Disposal/Write-down of Property, Plant and Equipment (Excluding Real Estate), net	—			762			—			86			—			848
Total Operating Expenses	188			792,909			60,131			421,308			(39,952		)	1,234,584
Operating (Loss) Income	(188		)	189,136			34,206			51,282			—			274,436
Interest Expense (Income), Net	78,392			(13,092		)	16,545			49,140			—			130,985
Other (Income) Expense, Net	(911		)	4,522			(137		)	20,879			—			24,353
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes	(77,669		)	197,706			17,798			(18,737		)	—			119,098
Provision (Benefit) for Income Taxes	—			8,665			7,859			6,828			—			23,352
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	(172,095		)	18,097			(1,933		)	(9,939		)	165,870			—
Net Income (Loss)	94,426			170,944			11,872			(15,626		)	(165,870		)	95,746
Less: Net Income (Loss) Attributable to Noncontrolling Interests	—			—			—			1,320			—			1,320
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	94,426		$	170,944		$	11,872		$	(16,946	)	$	(165,870	)	$	94,426
Net Income (Loss)	$	94,426		$	170,944		$	11,872		$	(15,626	)	$	(165,870	)	$	95,746
Other Comprehensive Income (Loss):
Foreign Currency Translation Adjustments	3,466			—			(6,903		)	(51,738		)	—			(55,175		)
Market Value Adjustments for Securities	—			23			—			—			—			23
Equity in Other Comprehensive (Loss) Income of Subsidiaries	(58,185		)	(57,989		)	(1,465		)	(6,903		)	124,542			—
Total Other Comprehensive (Loss) Income	(54,719		)	(57,966		)	(8,368		)	(58,641		)	124,542			(55,152		)
Comprehensive Income (Loss)	39,707			112,978			3,504			(74,267		)	(41,328		)	40,594
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	—			—			—			887			—			887
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$	39,707		$	112,978		$	3,504		$	(75,154	)	$	(41,328	)	$	39,707

CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended June 30, 2014
	Parent			Guarantors			Canada Company		Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage Rental	$	—		$	301,683		$	31,295	$	133,911		$	—		$	466,889
Service	—			190,613			17,591		111,799			—			320,003
Intercompany Service	—			—			—		15,194			(15,194		)	—
Total Revenues	—			492,296			48,886		260,904			(15,194		)	786,892
Operating Expenses:
Cost of Sales (Excluding Depreciation and Amortization)	—			196,328			6,322		134,311			—			336,961
Selling, General and Administrative	36			142,698			3,090		67,983			—			213,807
Intercompany Service Charges	—			—			15,194		—			(15,194		)	—
Depreciation and Amortization	56			52,322			2,979		33,584			—			88,941
(Gain) Loss on Disposal/Write-down of Property, Plant and Equipment (Excluding Real Estate), net	—			(97		)	—		(10		)	—			(107		)
Total Operating Expenses	92			391,251			27,585		235,868			(15,194		)	639,602
Operating (Loss) Income	(92		)	101,045			21,301		25,036			—			147,290
Interest Expense (Income), Net	46,674			(3,004		)	7,836		10,695			—			62,201
Other Expense (Income), Net	8,105			6,214			—		(19,157		)	—			(4,838		)
(Loss) Income from Continuing Operations Before (Benefit) Provision for Income Taxes	(54,871		)	97,835			13,465		33,498			—			89,927
(Benefit) Provision for Income Taxes	—			(193,131		)	3,572		6,784			—			(182,775		)
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	(326,508		)	(35,234		)	1,313		(9,893		)	370,322			—
Income (Loss) from Continuing Operations	271,637			326,200			8,580		36,607			(370,322		)	272,702
(Loss) Income from Discontinued Operations, Net of Tax	—			(335		)	—		9			—			(326		)
Net Income (Loss)	271,637			325,865			8,580		36,616			(370,322		)	272,376
Less: Net Income (Loss) Attributable to Noncontrolling Interests	—			—			—		739			—			739
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	271,637		$	325,865		$	8,580	$	35,877		$	(370,322	)	$	271,637
Net Income (Loss)	$	271,637		$	325,865		$	8,580	$	36,616		$	(370,322	)	$	272,376
Other Comprehensive Income (Loss):
Foreign Currency Translation Adjustments	663			(657		)	2,181		2,339			—			4,526
Market Value Adjustments for Securities	—			548			—		—			—			548
Equity in Other Comprehensive Income (Loss) of Subsidiaries	3,985			4,116			1,663		2,181			(11,945		)	—
Total Other Comprehensive Income (Loss)	4,648			4,007			3,844		4,520			(11,945		)	5,074
Comprehensive Income (Loss)	276,285			329,872			12,424		41,136			(382,267		)	277,450
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	—			—			—		1,165			—			1,165
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$	276,285		$	329,872		$	12,424	$	39,971		$	(382,267	)	$	276,285

CONSOLIDATED STATEMENTS OF OPERATIONS (Continued)

	Three Months Ended June 30, 2015
	Parent			Guarantors			Canada Company			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage Rental	$	—		$	305,913		$	30,804		$	124,492		$	—		$	461,209
Service	—			189,268			16,108			93,149			—			298,525
Intercompany Service	—			1,055			—			22,126			(23,181		)	—
Total Revenues	—			496,236			46,912			239,767			(23,181		)	759,734
Operating Expenses:
Cost of Sales (Excluding Depreciation and Amortization)	—			196,080			6,642			123,561			—			326,283
Selling, General and Administrative	24			149,051			3,795			63,015			—			215,885
Intercompany Service Charges	—			6,400			15,726			1,055			(23,181		)	—
Depreciation and Amortization	45			56,360			3,165			27,979			—			87,549
Loss (Gain) on Disposal/Write-down of Property, Plant and Equipment (Excluding Real Estate), net	—			440			—			75			—			515
Total Operating Expenses	69			408,331			29,328			215,685			(23,181		)	630,232
Operating (Loss) Income	(69		)	87,905			17,584			24,082			—			129,502
Interest Expense (Income), Net	39,222			(6,415		)	8,342			24,938			—			66,087
Other Expense (Income), Net	1,127			3,139			(10		)	(2,252		)	—			2,004
(Loss) Income from Continuing Operations Before (Benefit) Provision for Income Taxes	(40,418		)	91,181			9,252			1,396			—			61,411
(Benefit) Provision for Income Taxes	—			(1,037		)	4,796			3,645			—			7,404
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	(93,748		)	(643		)	(874		)	(4,456		)	99,721			—
Net Income (Loss)	53,330			92,861			5,330			2,207			(99,721		)	54,007
Less: Net Income (Loss) Attributable to Noncontrolling Interests	—			—			—			677			—			677
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	53,330		$	92,861		$	5,330		$	1,530		$	(99,721	)	$	53,330
Net Income (Loss)	$	53,330		$	92,861		$	5,330		$	2,207		$	(99,721	)	$	54,007
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustments	(1,464		)	—			1,037			1,427			—			1,000
Equity in Other Comprehensive Income (Loss) of Subsidiaries	2,796			2,907			1,542			1,037			(8,282		)	—
Total Other Comprehensive Income (Loss)	1,332			2,907			2,579			2,464			(8,282		)	1,000
Comprehensive Income (Loss)	54,662			95,768			7,909			4,671			(108,003		)	55,007
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	—			—			—			345			—			345
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$	54,662		$	95,768		$	7,909		$	4,326		$	(108,003	)	$	54,662

Schedule of selected consolidated cash flow statements of Parent, Guarantors, Canada Company and Non-Guarantors

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six Months Ended June 30, 2014
	Parent			Guarantors			Canada Company			Non- Guarantors			Eliminations			Consolidated
Cash Flows from Operating Activities:
Cash Flows from Operating Activities	$	(102,687	)	$	193,625		$	30,500		$	74,163		$	—		$	195,601
Cash Flows from Investing Activities:
Capital expenditures	—			(117,875		)	(3,714		)	(67,156		)	—			(188,745		)
Cash paid for acquisitions, net of cash acquired	—			683			—			(47,049		)	—			(46,366		)
Intercompany loans to subsidiaries	454,027			22,778			—			—			(476,805		)	—
Investment in subsidiaries	(18,199		)	(18,199		)	—			—			36,398			—
Additions to customer relationship and acquisition costs	—			(14,278		)	(425		)	(2,507		)	—			(17,210		)
Proceeds from sales of property and equipment and other, net (including real estate)	—			1,535			64			16,009			—			17,608
Cash Flows from Investing Activities	435,828			(125,356		)	(4,075		)	(100,703		)	(440,407		)	(234,713		)
Cash Flows from Financing Activities:
Repayment of revolving credit and term loan facilities and other debt	—			(4,719,695		)	(490,931		)	(97,220		)	—			(5,307,846		)
Proceeds from revolving credit and term loan facilities and other debt	—			5,084,042			466,677			153,850			—			5,704,569
Early retirement of senior subordinated notes	(247,275		)	—			—			—			—			(247,275		)
Debt (repayment to) financing and equity contribution from (distribution to) noncontrolling interests, net	—			—			—			(2,083		)	—			(2,083		)
Intercompany loans from parent	—			(453,675		)	2,135			(25,265		)	476,805			—
Equity contribution from parent	—			18,199			—			18,199			(36,398		)	—
Parent cash dividends	(104,861		)	—			—			—			—			(104,861		)
Proceeds from exercise of stock options and employee stock purchase plan	17,818			—			—			—			—			17,818
Excess tax (deficiency) benefit from stock-based compensation	(66		)	—			—			—			—			(66		)
Payment of debt financing costs and stock issuance costs	—			—			(12		)	(417		)	—			(429		)
Cash Flows from Financing Activities	(334,384		)	(71,129		)	(22,131		)	47,064			440,407			59,827
Effect of exchange rates on cash and cash equivalents	—			442			190			3,470			—			4,102
(Decrease) Increase in cash and cash equivalents	(1,243		)	(2,418		)	4,484			23,994			—			24,817
Cash and cash equivalents, beginning of period	1,243			10,366			1,094			107,823			—			120,526
Cash and cash equivalents, end of period	$	—		$	7,948		$	5,578		$	131,817		$	—		$	145,343

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

	Six Months Ended June 30, 2015
	Parent			Guarantors			Canada Company			Non- Guarantors			Eliminations			Consolidated
Cash Flows from Operating Activities:
Cash Flows from Operating Activities	$	(77,187	)	$	203,751		$	13,218		$	39,956		$	—		$	179,738
Cash Flows from Investing Activities:
Capital expenditures	—			(86,883		)	(8,914		)	(43,559		)	—			(139,356		)
Cash paid for acquisitions, net of cash acquired	—			(5,736		)	(5,399		)	(10,579		)	—			(21,714		)
Intercompany loans to subsidiaries	245,945			172,666			—			—			(418,611		)	—
Investment in subsidiaries	(10,000		)	(10,000		)	—			—			20,000			—
Decrease in restricted cash	33,860			—			—			—			—			33,860
Additions to customer relationship and acquisition costs	—			(20,247		)	(690		)	(3,270		)	—			(24,207		)
Proceeds from sales of property and equipment and other, net (including real estate)	—			327			6			472			—			805
Cash Flows from Investing Activities	269,805			50,127			(14,997		)	(56,936		)	(398,611		)	(150,612		)
Cash Flows from Financing Activities:
Repayment of revolving credit and term loan facilities and other debt	—			(3,640,841		)	(331,819		)	(942,385		)	—			(4,915,045		)
Proceeds from revolving credit and term loan facilities and other debt	—			3,616,000			334,633			1,124,402			—			5,075,035
Debt (repayment to) financing and equity (distribution to) contribution from noncontrolling interests, net	—			—			—			(830		)	—			(830		)
Intercompany loans from parent	—			(240,118		)	877			(179,370		)	418,611			—
Equity contribution from parent	—			10,000			—			10,000			(20,000		)	—
Parent cash dividends	(203,229		)	—			—			—			—			(203,229		)
Proceeds from exercise of stock options and employee stock purchase plan	9,454			—			—			—			—			9,454
Excess tax benefit (deficiency) from stock-based compensation	260			—			—			—			—			260
Payment of debt financing costs and stock issuance costs	(29		)	(110		)	—			(975		)	—			(1,114		)
Cash Flows from Financing Activities	(193,544		)	(255,069		)	3,691			10,842			398,611			(35,469		)
Effect of exchange rates on cash and cash equivalents	—			(67		)	(14		)	(2,411		)	—			(2,492		)
(Decrease) Increase in cash and cash equivalents	(926		)	(1,258		)	1,898			(8,549		)	—			(8,835		)
Cash and cash equivalents, beginning of period	2,399			4,713			4,979			113,842			—			125,933
Cash and cash equivalents, end of period	$	1,473		$	3,455		$	6,877		$	105,293		$	—		$	117,098