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

12 Months Ended

Dec. 31, 2017

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

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, 2016 and 2017 and for the years ended December 31, 2015, 2016 and 2017 and are prepared on the same basis as the consolidated financial statements.

The Parent Notes, CAD Notes, GBP Notes due 2022, GBP Notes due 2025 and the 5³/₈% 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 guarantees the CAD Notes, which were issued by Canada Company, the GBP Notes due 2022, which were issued by IME, the GBP Notes due 2025, which were issued by IM UK, and the 5³/₈% Notes, which were issued by IM US Holdings. Canada Company, IME and IM UK do not guarantee the Parent Notes. The subsidiaries that do not guarantee the Parent Notes, the CAD Notes, the GBP Notes due 2022, the GBP Notes due 2025, and the 5³/₈% Notes, including IME, IM UK, the Accounts Receivable Securitization Special Purpose Subsidiaries and the Mortgage Securitization Special Purpose Subsidiary, are referred to below as the Non-Guarantors. As discussed below, the results of the Non-Guarantors for 2015 and 2016 exclude the results of Canada Company, as those are presented in a separate column.

The CAD Notes due 2021 were issued by Canada Company and registered under the Securities Act of 1933, as amended (the “Securities Act”). The CAD Notes due 2023 have not been registered under the Securities Act, or under the securities laws of any other jurisdiction. As disclosed in Note 4, we redeemed the CAD Notes due 2021 in August 2017 and, therefore, as of December 31, 2017, Canada Company had no outstanding debt registered under the Securities Act that would require the presentation of Canada Company on a standalone basis in the accompanying consolidating financial statements. Accordingly, (i) the assets, liabilities and equity of Canada Company are presented as a component of the Non-Guarantor subsidiaries in the accompanying Consolidated Balance Sheet as of December 31, 2017, (ii) the revenues, expenses and other comprehensive income (loss) of Canada Company are presented as a component of the Non-Guarantor subsidiaries in the Consolidated Statement of Operations and Comprehensive Income (Loss) for the year ended December 31, 2017, and (iii) the operating, investing and financing cash flows for Canada Company are presented as a component of the Non-Guarantor subsidiaries in the Consolidated Statement of Cash Flows for the year ended December 31, 2017.

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 and Comprehensive Income (Loss) with respect to the relevant Parent, Guarantors, Canada Company, Non-Guarantors and Eliminations columns also would change.

CONSOLIDATED BALANCE SHEETS

	December 31, 2016
	Parent		Guarantors		Canada Company		Non- Guarantors		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents	$	2,405	$	23,380	$	17,110	$	193,589	$	—		$	236,484
Accounts receivable	—		53,364		37,781		600,104		—			691,249
Intercompany receivable	—		653,008		21,114		—		(674,122		)	—
Prepaid expenses and other	—		70,660		4,967		108,776		(29		)	184,374
Total Current Assets	2,405		800,412		80,972		902,469		(674,151		)	1,112,107
Property, Plant and Equipment, Net	483		1,804,991		159,391		1,118,461		—			3,083,326
Other Assets, Net:
Long-term notes receivable from affiliates and intercompany receivable	4,014,330		1,000		—		—		(4,015,330		)	—
Investment in subsidiaries	1,659,518		699,411		35,504		77,449		(2,471,882		)	—
Goodwill	—		2,602,784		217,422		1,084,815		—			3,905,021
Other	—		765,698		49,570		571,078		—			1,386,346
Total Other Assets, Net	5,673,848		4,068,893		302,496		1,733,342		(6,487,212		)	5,291,367
Total Assets	$	5,676,736	$	6,674,296	$	542,859	$	3,754,272	$	(7,161,363	)	$	9,486,800
Liabilities and Equity
Intercompany Payable	$	558,492	$	—	$	—	$	115,630	$	(674,122	)	$	—
Current Portion of Long-term Debt	—		51,456		—		121,548		(29		)	172,975
Total Other Current Liabilities	58,478		488,194		40,442		286,468		—			873,582
Long-term Debt, Net of Current Portion	3,093,388		1,055,642		335,410		1,593,766		—			6,078,206
Long-term Notes Payable to Affiliates and Intercompany Payable	1,000		4,014,330		—		—		(4,015,330		)	—
Other Long-term Liabilities	—		127,715		54,054		188,900		—			370,669
Commitments and Contingencies (see Note 10)
Redeemable Noncontrolling Interests (see Note 2.x.)	28,831		—		—		25,866		—			54,697
Total Iron Mountain Incorporated Stockholders' Equity	1,936,547		936,959		112,953		1,421,970		(2,471,882		)	1,936,547
Noncontrolling Interests	—		—		—		124		—			124
Total Equity	1,936,547		936,959		112,953		1,422,094		(2,471,882		)	1,936,671
Total Liabilities and Equity	$	5,676,736	$	6,674,296	$	542,859	$	3,754,272	$	(7,161,363	)	$	9,486,800

CONSOLIDATED BALANCE SHEETS (Continued)

	December 31, 2017
	Parent		Guarantors		Non- Guarantors		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents(1)	$	2,433	$	634,317	$	383,675	$	(94,726	)	$	925,699
Accounts receivable	—		32,972		802,770		—			835,742
Intercompany receivable	332,293		149,731		—		(482,024		)	—
Prepaid expenses and other	1,579		103,643		83,681		(29		)	188,874
Total Current Assets	336,305		920,663		1,270,126		(576,779		)	1,950,315
Property, Plant and Equipment, Net	316		2,030,875		1,386,488		—			3,417,679
Other Assets, Net:
Long-term notes receivable from affiliates and intercompany receivable	4,578,995		—		—		(4,578,995		)	—
Investment in subsidiaries	1,858,045		885,999		—		(2,744,044		)	—
Goodwill	—		2,577,310		1,492,957		—			4,070,267
Other	—		796,913		737,228		—			1,534,141
Total Other Assets, Net	6,437,040		4,260,222		2,230,185		(7,323,039		)	5,604,408
Total Assets	$	6,773,661	$	7,211,760	$	4,886,799	$	(7,899,818	)	$	10,972,402
Liabilities and Equity
Intercompany Payable	$	—	$	—	$	482,024	$	(482,024	)	$	—
Debit Balances Under Cash Pools	—		56,233		38,493		(94,726		)	—
Current Portion of Long-term Debt	—		54,247		92,082		(29		)	146,300
Total Other Current Liabilities	235,062		527,549		421,262		—			1,183,873
Long-term Debt, Net of Current Portion	4,232,759		758,166		1,906,046		—			6,896,971
Long-term Notes Payable to Affiliates and Intercompany Payable	—		4,578,995		—		(4,578,995		)	—
Other Long-term Liabilities	—		113,024		241,974		—			354,998
Commitments and Contingencies (see Note 10)
Redeemable Noncontrolling Interests (see Note 2.x.)	8,402		—		83,016		—			91,418
Total Iron Mountain Incorporated Stockholders' Equity	2,297,438		1,123,546		1,620,498		(2,744,044		)	2,297,438
Noncontrolling Interests	—		—		1,404		—			1,404
Total Equity	2,297,438		1,123,546		1,621,902		(2,744,044		)	2,298,842
Total Liabilities and Equity	$	6,773,661	$	7,211,760	$	4,886,799	$	(7,899,818	)	$	10,972,402

______________________________________________________________

(1) Included within Cash and Cash Equivalents at December 31, 2017 is approximately $38,400 and $62,000 of cash on deposit associated with our Cash Pools for the Guarantors and Non-Guarantors, respectively. See Note 4 for more information on our Cash Pools.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

	Year Ended December 31, 2015
	Parent			Guarantors			Canada Company			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage rental	$	—		$	1,227,876		$	118,908		$	491,113		$	—		$	1,837,897
Service	—			736,101			61,717			372,261			—			1,170,079
Intercompany revenues	—			3,476			—			71,516			(74,992		)	—
Total Revenues	—			1,967,453			180,625			934,890			(74,992		)	3,007,976
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	—			790,426			25,213			474,386			—			1,290,025
Intercompany cost of sales	—			13,384			58,132			3,476			(74,992		)	—
Selling, general and administrative	117			595,491			14,734			234,618			—			844,960
Depreciation and amortization	181			224,443			12,427			108,413			—			345,464
Loss (Gain) on disposal/write-down of property, plant and equipment (excluding real estate), net	—			962			41			1,997			—			3,000
Total Operating Expenses	298			1,624,706			110,547			822,890			(74,992		)	2,483,449
Operating (Loss) Income	(298		)	342,747			70,078			112,000			—			524,527
Interest Expense (Income), Net	159,848			(30,559		)	36,521			98,061			—			263,871
Other Expense (Income), Net	23,675			(82,820		)	55,230			102,505			—			98,590
(Loss) Income from Continuing Operations Before (Benefit) Provision for Income Taxes and Gain on Sale of Real Estate	(183,821		)	456,126			(21,673		)	(88,566		)	—			162,066
Provision (Benefit) for Income Taxes	—			13,632			12,787			11,294			—			37,713
Gain on Sale of Real Estate, Net of Tax	—			—			—			(850		)	—			(850		)
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	(307,062		)	135,722			(2,552		)	34,460			139,432			—
Net Income (Loss)	123,241			306,772			(31,908		)	(133,470		)	(139,432		)	125,203
Less: Net Income (Loss) Attributable to Noncontrolling Interests	—			—			—			1,962			—			1,962
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	123,241		$	306,772		$	(31,908	)	$	(135,432	)	$	(139,432	)	$	123,241
Net Income (Loss)	$	123,241		$	306,772		$	(31,908	)	$	(133,470	)	$	(139,432	)	$	125,203
Other Comprehensive Income (Loss):
Foreign Currency Translation Adjustment	3,284			—			(19,003		)	(85,251		)	—			(100,970		)
Market Value Adjustments for Securities	—			(245		)	—			—			—			(245		)
Equity in Other Comprehensive (Loss) Income of Subsidiaries	(103,170		)	(103,521		)	(3,176		)	(19,003		)	228,870			—
Total Other Comprehensive (Loss) Income	(99,886		)	(103,766		)	(22,179		)	(104,254		)	228,870			(101,215		)
Comprehensive Income (Loss)	23,355			203,006			(54,087		)	(237,724		)	89,438			23,988
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	—			—			—			633			—			633
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$	23,355		$	203,006		$	(54,087	)	$	(238,357	)	$	89,438		$	23,355

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Continued)

	Year Ended December 31, 2016
	Parent			Guarantors			Canada Company			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage rental	$	—		$	1,341,840		$	125,335		$	675,730		$	—		$	2,142,905
Service	—			822,515			64,147			481,886			—			1,368,548
Intercompany revenues	—			3,994			—			80,788			(84,782		)	—
Total Revenues	—			2,168,349			189,482			1,238,404			(84,782		)	3,511,453
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	—			895,595			29,418			642,764			—			1,567,777
Intercompany cost of sales	—			17,496			63,292			3,994			(84,782		)	—
Selling, general and administrative	668			668,975			17,786			300,903			—			988,332
Depreciation and amortization	179			272,831			15,480			163,836			—			452,326
Loss (Gain) on disposal/write-down of property, plant and equipment (excluding real estate), net	—			1,328			310			(226		)	—			1,412
Total Operating Expenses	847			1,856,225			126,286			1,111,271			(84,782		)	3,009,847
Operating (Loss) Income	(847		)	312,124			63,196			127,133			—			501,606
Interest Expense (Income), Net	110,659			(7,741		)	40,546			167,198			—			310,662
Other Expense (Income), Net	71,335			(13,247		)	10,341			(24,129		)	—			44,300
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes and Gain on Sale of Real Estate	(182,841		)	333,112			12,309			(15,936		)	—			146,644
Provision (Benefit) for Income Taxes	—			30,860			7,354			6,730			—			44,944
Gain on Sale of Real Estate, Net of Tax	—			(2,121		)	(59		)	—			—			(2,180		)
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	(287,665		)	(22,662		)	(5,040		)	(6,832		)	322,199			—
Income (Loss) from Continuing Operations	104,824			327,035			10,054			(15,834		)	(322,199		)	103,880
Income (Loss) from Discontinued Operations, Net of Tax	—			1,642			1,818			(107		)	—			3,353
Net Income (Loss)	104,824			328,677			11,872			(15,941		)	(322,199		)	107,233
Less: Net Income (Loss) Attributable to Noncontrolling Interests	—			—			—			2,409			—			2,409
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	104,824		$	328,677		$	11,872		$	(18,350	)	$	(322,199	)	$	104,824
Net Income (Loss)	$	104,824		$	328,677		$	11,872		$	(15,941	)	$	(322,199	)	$	107,233
Other Comprehensive Income (Loss):
Foreign Currency Translation Adjustment	1,107			—			(6,123		)	(30,625		)	—			(35,641		)
Market Value Adjustments for Securities	—			(734		)	—			—			—			(734		)
Equity in Other Comprehensive (Loss) Income of Subsidiaries	(38,763		)	(3,164		)	(679		)	(6,123		)	48,729			—
Total Other Comprehensive (Loss) Income	(37,656		)	(3,898		)	(6,802		)	(36,748		)	48,729			(36,375		)
Comprehensive Income (Loss)	67,168			324,779			5,070			(52,689		)	(273,470		)	70,858
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	—			—			—			3,690			—			3,690
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$	67,168		$	324,779		$	5,070		$	(56,379	)	$	(273,470	)	$	67,168

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Continued)

	Year Ended December 31, 2017
	Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage rental	$	—		$	1,437,466		$	940,091		$	—		$	2,377,557
Service	—			863,623			604,398			—			1,468,021
Intercompany revenues	—			4,577			24,613			(29,190		)	—
Total Revenues	—			2,305,666			1,569,102			(29,190		)	3,845,578
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	—			925,385			759,933			—			1,685,318
Intercompany cost of sales	—			24,613			4,577			(29,190		)	—
Selling, general and administrative	161			654,213			330,591			—			984,965
Depreciation and amortization	167			309,883			212,326			—			522,376
Intangible impairments	—			3,011			—			—			3,011
(Gain) Loss on disposal/write-down of property, plant and equipment (excluding real estate), net	—			(999		)	1,798			—			799
Total Operating Expenses	328			1,916,106			1,309,225			(29,190		)	3,196,469
Operating (Loss) Income	(328		)	389,560			259,877			—			649,109
Interest Expense (Income), Net	163,541			6,996			183,038			—			353,575
Other Expense (Income), Net	47,176			9,112			23,141			—			79,429
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes and Gain on Sale of Real Estate	(211,045		)	373,452			53,698			—			216,105
Provision (Benefit) for Income Taxes	—			5,854			20,093			—			25,947
Gain on Sale of Real Estate, Net of Tax	—			—			(1,565		)	—			(1,565		)
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	(394,866		)	(25,385		)	—			420,251			—
Income (Loss) from Continuing Operations	183,821			392,983			35,170			(420,251		)	191,723
(Loss) Income from Discontinued Operations, Net of Tax	—			(4,370		)	(1,921		)	—			(6,291		)
Net Income (Loss)	183,821			388,613			33,249			(420,251		)	185,432
Less: Net Income (Loss) Attributable to Noncontrolling Interests	—			—			1,611			—			1,611
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	183,821		$	388,613		$	31,638		$	(420,251	)	$	183,821
Net Income (Loss)	$	183,821		$	388,613		$	33,249		$	(420,251	)	$	185,432
Other Comprehensive Income (Loss):
Foreign Currency Translation Adjustment	(15,015		)	—			123,579			—			108,564
Equity in Other Comprehensive Income (Loss) of Subsidiaries	123,599			82,127			—			(205,726		)	—
Total Other Comprehensive Income (Loss)	108,584			82,127			123,579			(205,726		)	108,564
Comprehensive Income (Loss)	292,405			470,740			156,828			(625,977		)	293,996
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	—			—			1,591			—			1,591
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$	292,405		$	470,740		$	155,237		$	(625,977	)	$	292,405

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Year Ended December 31, 2015
	Parent			Guarantors			Canada Company			Non- Guarantors			Eliminations			Consolidated
Cash Flows from Operating Activities:
Cash Flows from Operating Activities	$	(161,287	)	$	568,491		$	39,181		$	95,375		$	—		$	541,760
Cash Flows from Investing Activities:
Capital expenditures	—			(189,693		)	(15,128		)	(85,428		)	—			(290,249		)
Cash paid for acquisitions, net of cash acquired	—			(78,004		)	(5,260		)	(30,294		)	—			(113,558		)
Intercompany loans to subsidiaries	334,019			320,932			—			—			(654,951		)	—
Investment in subsidiaries	(25,276		)	(25,276		)	—			—			50,552			—
Acquisitions of customer relationships and customer inducements	—			(44,578		)	(576		)	(9,957		)	—			(55,111		)
Proceeds from sales of property and equipment and other, net (including real estate)	—			586			49			1,637			—			2,272
Cash Flows from Investing Activities	308,743			(16,033		)	(20,915		)	(124,042		)	(604,399		)	(456,646		)
Cash Flows from Financing Activities:
Repayment of revolving credit and term loan facilities and other debt	—			(8,456,352		)	(754,703		)	(1,585,818		)	—			(10,796,873		)
Proceeds from revolving credit and term loan facilities and other debt	47,198			8,220,200			835,101			1,823,210			—			10,925,709
Early retirement of senior subordinated notes	(814,728		)	—			—			—			—			(814,728		)
Net proceeds from sales of senior notes	985,000			—			—			—			—			985,000
Debt financing from (repayment to) and equity contribution from (distribution to) noncontrolling interests, net	—			—			—			5,574			—			5,574
Intercompany loans from parent	—			(327,888		)	(94,038		)	(233,025		)	654,951			—
Equity contribution from parent	—			25,276			—			25,276			(50,552		)	—
Parent cash dividends	(406,508		)	—			—			—			—			(406,508		)
Net proceeds (payments) associated with employee stock-based awards	7,149			—			—			—			—			7,149
Excess tax benefit from employee stock-based awards	327			—			—			—			—			327
Payment of debt financing and stock issuance costs	(2,002		)	(10,604		)	—			(1,555		)	—			(14,161		)
Cash Flows from Financing Activities	(183,564		)	(549,368		)	(13,640		)	33,662			604,399			(108,511		)
Effect of exchange rates on cash and cash equivalents	—			—			3,577			(11,592		)	—			(8,015		)
(Decrease) Increase in cash and cash equivalents	(36,108		)	3,090			8,203			(6,597		)	—			(31,412		)
Cash and cash equivalents, beginning of year	36,259			4,713			4,979			113,842			—			159,793
Cash and cash equivalents, end of year	$	151		$	7,803		$	13,182		$	107,245		$	—		$	128,381

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

	Year Ended December 31, 2016
	Parent			Guarantors			Canada Company			Non- Guarantors				Eliminations			Consolidated
Cash Flows from Operating Activities:
Cash Flows from Operating Activities	$	(168,389	)	$	633,808		$	41,885		$	33,912			$	—		$	541,216
Cash Flows from Operating Activities-Discontinued Operations	—			1,076			1,710			(107		)		—			2,679
Cash Flows from Operating Activities	(168,389		)	634,884			43,595			33,805				—			543,895
Cash Flows from Investing Activities:
Capital expenditures	—			(192,736		)	(10,284		)	(125,583		)		—			(328,603		)
Cash paid for acquisitions, net of cash acquired	—			4,007			(2,405		)	(293,567		)		—			(291,965		)
Intercompany loans to subsidiaries	175,092			(166,400		)	(20,185		)	—				11,493			—
Investment in subsidiaries	(1,585		)	(1,585		)	—			—				3,170			—
Acquisitions of customer relationships and customer inducements	—			(40,217		)	(366		)	(10,183		)		—			(50,766		)
Net proceeds from Divestments (see Note 6)	—			—			4,032			26,622				—			30,654
Proceeds from sales of property and equipment and other, net (including real estate)	—			5,235			30			2,712				—			7,977
Cash Flows from Investing Activities-Continuing Operations	173,507			(391,696		)	(29,178		)	(399,999		)	—	14,663			(632,703		)
Cash Flows from Investing Activities-Discontinued Operations	—			78,564			16,153			1,995				—			96,712
Cash Flows from Investing Activities	173,507			(313,132		)	(13,025		)	(398,004		)		14,663			(535,991		)
Cash Flows from Financing Activities:
Repayment of revolving credit and term loan facilities, bridge facilities and other debt	(1,163,654		)	(7,511,941		)	(1,273,228		)	(4,902,617		)		—			(14,851,440		)
Proceeds from revolving credit and term loan facilities, bridge facilities and other debt	1,150,628			7,144,874			1,130,193			5,118,693				—			14,544,388
Net proceeds from sales of senior notes	492,500			246,250			186,693			—				—			925,443
Debt (repayment to) financing from and equity (distribution to) contribution from noncontrolling interests, net	—			—			—			(466		)		—			(466		)
Intercompany loans from parent	—			(183,454		)	(67,514		)	262,461				(11,493		)	—
Equity contribution from parent	—			1,585			—			1,585				(3,170		)	—
Parent cash dividends	(505,871		)	—			—			—				—			(505,871		)
Net proceeds (payments) associated with employee stock-based awards	31,922			—			—			—				—			31,922
Payment of debt financing and stock issuance costs	(8,389		)	(3,489		)	(895		)	(5,830		)		—			(18,603		)
Cash Flows from Financing Activities-Continuing Operations	(2,864		)	(306,175		)	(24,751		)	473,826				(14,663		)	125,373
Cash Flows from Financing Activities-Discontinued Operations	—			—			—			—				—			—
Cash Flows from Financing Activities	(2,864		)	(306,175		)	(24,751		)	473,826				(14,663		)	125,373
Effect of exchange rates on cash and cash equivalents	—			—			(1,891		)	(23,283		)		—			(25,174		)
Increase (Decrease) in cash and cash equivalents	2,254			15,577			3,928			86,344				—			108,103
Cash and cash equivalents, beginning of year	151			7,803			13,182			107,245				—			128,381
Cash and cash equivalents, end of year	$	2,405		$	23,380		$	17,110		$	193,589			$	—		$	236,484

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

	Year Ended December 31, 2017
	Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Cash Flows from Operating Activities:
Cash Flows from Operating Activities-Continuing Operations	$	(203,403	)	$	738,256		$	189,406		$	—		$	724,259
Cash Flows from Operating Activities-Discontinued Operations	—			(1,345		)	(1,946		)	—			(3,291		)
Cash Flows from Operating Activities	(203,403		)	736,911			187,460			—			720,968
Cash Flows from Investing Activities:
Capital expenditures	—			(235,996		)	(107,135		)	—			(343,131		)
Cash paid for acquisitions, net of cash acquired	—			(96,946		)	(122,759		)	—			(219,705		)
Intercompany loans to subsidiaries	(990,635		)	(344,919		)	—			1,335,554			—
Investment in subsidiaries	(16,170		)	—			—			16,170			—
Acquisitions of customer relationships and customer inducements	—			(63,765		)	(11,420		)	—			(75,185		)
Net proceeds from Divestments (see Note 6)	—			—			29,236			—			29,236
Proceeds from sales of property and equipment and other, net (including real estate)	—			12,963			(3,626		)	—			9,337
Cash Flows from Investing Activities-Continuing Operations	(1,006,805		)	(728,663		)	(215,704		)	1,351,724			(599,448		)
Cash Flows from Investing Activities-Discontinued Operations	—			—			—			—			—
Cash Flows from Investing Activities	(1,006,805		)	(728,663		)	(215,704		)	1,351,724			(599,448		)
Cash Flows from Financing Activities:
Repayment of revolving credit, term loan facilities and other debt	(262,579		)	(8,077,553		)	(6,089,563		)	—			(14,429,695		)
Proceeds from revolving credit, term loan facilities and other debt	224,660			7,650,617			6,041,778			—			13,917,055
Early retirement of senior subordinated and senior notes	(1,031,554		)	—			(715,302		)	—			(1,746,856		)
Net proceeds from sales of senior notes	2,134,870			—			522,078			—			2,656,948
Debit balances (payments) under cash pools	—			56,233			38,493			(94,726		)	—
Debt financing from (repayment to) and equity contribution from (distribution to) noncontrolling interests, net	—			—			9,079			—			9,079
Intercompany loans from parent	—			982,783			352,771			(1,335,554		)	—
Equity contribution from parent	—			—			16,170			(16,170		)	—
Parent cash dividends	(439,999		)	—			—			—			(439,999		)
Net proceeds associated with the Equity Offering	516,462			—			—			—			516,462
Net proceeds associated with the At The Market (ATM) Program	59,129			—			—			—			59,129
Net proceeds (payments) associated with employee stock-based awards	13,095			—			—			—			13,095
Payment of debt financing and stock issuance costs	(3,848		)	(9,391		)	(1,554		)	—			(14,793		)
Cash Flows from Financing Activities-Continuing Operations	1,210,236			602,689			173,950			(1,446,450		)	540,425
Cash Flows from Financing Activities-Discontinued Operations	—			—			—			—			—
Cash Flows from Financing Activities	1,210,236			602,689			173,950			(1,446,450		)	540,425
Effect of exchange rates on cash and cash equivalents	—			—			27,270			—			27,270
Increase (Decrease) in cash and cash equivalents	28			610,937			172,976			(94,726		)	689,215
Cash and cash equivalents, beginning of year	2,405			23,380			210,699			—			236,484
Cash and cash equivalents, end of year	$	2,433		$	634,317		$	383,675		$	(94,726	)	$	925,699