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Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2017
Accounting Policies [Abstract]  
Schedule of foreign currency gain/loss
The total loss on foreign currency transactions for the years ended December 31, 2015, 2016 and 2017 is as follows:
 
Year Ended December 31,
 
2015
 
2016
 
2017
Total loss on foreign currency transactions
$
70,851

 
$
20,413

 
$
43,248
Property, Plant and Equipment at cost
Property, plant and equipment (including capital leases in the respective category), at cost, consist of the following:
 
December 31,
 
2016
 
2017
Land
$
260,059

 
$
314,897

Buildings and building improvements
1,702,448

 
2,039,902

Leasehold improvements
538,368

 
592,700

Racking
1,875,771

 
1,996,594

Warehouse equipment/vehicles
395,595

 
467,345

Furniture and fixtures
52,836

 
55,245

Computer hardware and software
588,980

 
627,571

Construction in progress
121,726

 
156,846

 
$
5,535,783

 
$
6,251,100

Property, plant and equipment are stated at cost and depreciated using the straight-line method with the following useful lives (in years):
 
Range
Buildings and building improvements
5 to 40
Leasehold improvements
5 to 10 or life of the lease (whichever is shorter)
Racking
1 to 20 or life of the lease (whichever is shorter)
Warehouse equipment/vehicles
1 to 10
Furniture and fixtures
1 to 10
Computer hardware and software
2 to 5
Reconciliation of liabilities for asset retirement obligations (included in other long-term liabilities)
A reconciliation of liabilities for asset retirement obligations (included in other long-term liabilities) is as follows:
 
December 31,
 
2016
 
2017
Asset Retirement Obligations, beginning of the year
$
13,997

 
$
25,488

Liabilities Assumed
10,678

 
1,990

Liabilities Incurred
687

 
433

Liabilities Settled
(1,106
)
 
(1,369
)
Accretion Expense
1,587

 
1,538

Foreign Currency Translation Adjustments
(355
)
 
(323
)
Asset Retirement Obligations, end of the year
$
25,488

 
$
27,757
Schedule of carrying value of goodwill, net for each of the reporting units
The carrying value of goodwill, net for each of our reporting units described above as of December 31, 2017 is as follows:
 
Carrying Value
as of
December 31, 2017
North American Records and Information Management(1)
$
2,269,446

North American Data Management(2)
497,851

Consumer Storage(3)
—

Fine Arts(3)
25,298

Entertainment Services(3)
34,750

Western Europe(4)
396,489

NEE and MEAI(5)(6)
188,265

Latin America(5)
155,115

Australia and New Zealand(5)
316,883

Asia(5)(7)
186,170

Global Data Center(8)
—

Total
$
4,070,267

_______________________________________________________________________________
(1) This reporting unit is included in the North American Records and Information Management Business segment.
(2) This reporting unit is included in the North American Data Management Business segment.
(3) This reporting unit is included in the Corporate and Other Business segment.
(4) This reporting unit is included in the Western European Business segment.
(5) This reporting unit is included in the Other International Business segment.
(6) Included in this reporting unit at December 31, 2017 is the goodwill associated with the OEC Transaction, as defined and more fully described in Note 6.
(7) Included in this reporting at December 31, 2017 is the goodwill associated with the Santa Fe China Transaction, as defined and more fully described in Note 6.
(8) This reporting unit is included in the Global Data Center Business segment.
The carrying value of goodwill, net for each of our reporting units described above as of December 31, 2016 was as follows:
 
Carrying Value
as of
December 31, 2016
North American Records and Information Management(1)
$
2,122,891

North American Secure Shredding(1)
158,020

North American Data Management(2)
505,690

Adjacent Businesses - Data Centers(3)
—

Adjacent Businesses - Consumer Storage(3)
3,011

Adjacent Businesses - Fine Arts(3)
22,911

Western Europe(4)
349,421

Northern and Eastern Europe(5)
136,431

Latin America(5)
147,782

Australia and New Zealand(5)
274,981

Southeast Asia(5)
162,351

Africa and India(5)
21,532

Total
$
3,905,021

_______________________________________________________________________________
(1)    This reporting unit was included in the North American Records and Information Management Business segment.
(2) This reporting unit was included in the North American Data Management Business segment.
(3) This reporting unit was included in the Corporate and Other Business segment.
(4) This reporting unit was included in the Western European Business segment.
(5) This reporting unit was included in the Other International Business segment.
Schedule of changes in the carrying value of goodwill attributable to each reportable operating segment
The changes in the carrying value of goodwill attributable to each reportable operating segment for the years ended December 31, 2016 and 2017 is as follows:
 
North American
Records and
Information
Management
Business
 
North American
Data Management
Business
 
Western European Business
 
Other International Business
 
Global Data Center Business
 
Corporate and Other Business
 
Total
Consolidated
Gross Balance as of December 31, 2015
$
1,620,425

 
$
411,882

 
$
381,149

 
$
225,626

 
$
—

 
$
37,910

 
$
2,676,992

Deductible goodwill acquired during the year
—

 
—

 
—

 
—

 
—

 
—

 
—

Non-deductible goodwill acquired during the year
867,756

 
135,836

 
73,760

 
578,596

 
—

 
215

 
1,656,163

Goodwill allocated to Iron Mountain Divestments(1)
(3,332
)
 
—

 
—

 
(40,089
)
 
—

 
—

 
(43,421
)
Fair value and other adjustments(2)
(157
)
 
—

 
—

 
(971
)
 
—

 
(479
)
 
(1,607
)
Currency effects
1,114

 
1

 
(49,338
)
 
(20,036
)
 
—

 
—

 
(68,259
)
Gross Balance as of December 31, 2016
2,485,806

 
547,719

 
405,571

 
743,126

 
—

 
37,646

 
4,219,868

Deductible goodwill acquired during the year
894

 
—

 
—

 
9,274

 
—

 
717

 
10,885

Non-deductible goodwill acquired during the year
—

 
—

 
—

 
24,970

 
—

 
24,533

 
49,503

Goodwill impairment
—

 
—

 
—

 
—

 
—

 
(3,011
)
 
(3,011
)
Goodwill allocated to Russia and Ukraine Divestment(3)
—

 
—

 
—

 
(3,515
)
 
—

 
—

 
(3,515
)
Fair value and other adjustments(4)
(25,195
)
 
208

 
10,536

 
21,079

 
—

 
—

 
6,628

Currency effects
13,324

 
3,799

 
37,430

 
51,787

 
—

 
163

 
106,503

Gross Balance as of December 31, 2017
$
2,474,829

 
$
551,726

 
$
453,537

 
$
846,721

 
$
—

 
$
60,048

 
$
4,386,861

Accumulated Amortization Balance as of December 31, 2015
$
204,681

 
$
53,699

 
$
57,505

 
$
129

 
$
—

 
$
—

 
$
316,014

Currency effects
214

 
54

 
(1,355
)
 
(80
)
 
—

 
—

 
(1,167
)
Accumulated Amortization Balance as of December 31, 2016
204,895

 
53,753

 
56,150

 
49

 
—

 
—

 
314,847

Currency effects
488

 
122

 
898

 
239

 
—

 
—

 
1,747

Accumulated Amortization Balance as of December 31, 2017
$
205,383

 
$
53,875

 
$
57,048

 
$
288

 
$
—

 
$
—

 
$
316,594

Net Balance as of December 31, 2016
$
2,280,911

 
$
493,966

 
$
349,421

 
$
743,077

 
$
—

 
$
37,646

 
$
3,905,021

Net Balance as of December 31, 2017
$
2,269,446

 
$
497,851

 
$
396,489

 
$
846,433

 
$
—

 
$
60,048

 
$
4,070,267

Accumulated Goodwill Impairment Balance as of December 31, 2016
$
85,909

 
$
—

 
$
46,500

 
$
—

 
$
—

 
$
—

 
$
132,409

Accumulated Goodwill Impairment Balance as of December 31, 2017
$
85,909

 
$
—

 
$
46,500

 
$
—

 
$
—

 
$
3,011

 
$
135,420

___________________________________________________________________
(1)
Goodwill allocated to Iron Mountain Divestments includes $40,089 and $3,332 of goodwill allocated to the Australia Divestment Business and the Iron Mountain Canadian Divestments (each as defined in Note 6), respectively.

(2)
Total fair value and other adjustments primarily include net adjustments of $(1,425) related to property, plant and equipment, customer relationship intangible assets (which represent adjustments within the applicable measurement period to provisional amounts recognized in purchase accounting) and other liabilities, and $182 of cash received related to certain acquisitions completed in 2015.

(3)
Goodwill allocated to the Russia and Ukraine Divestment.

(4)
Total fair value and other adjustments primarily include net adjustments of $6,628 primarily related to property, plant and equipment, and customer relationship intangible assets (which represent adjustments within the applicable measurement period to provisional amounts recognized in purchase accounting)
Components of amortizable intangible assets
The gross carrying amount and accumulated amortization of our finite-lived intangible assets as of December 31, 2016 and 2017, respectively, are as follows:
 
December 31, 2016
 
December 31, 2017
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Net Carrying
Amount
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Net Carrying
Amount
Customer relationships and Customer Inducements
$
1,604,020

 
$
(351,497
)
 
$
1,252,523

 
$
1,863,449

 
$
(462,902
)
 
$
1,400,547

Other finite-lived intangible assets (included in other assets, net)
24,788

 
(7,989
)
 
16,799

 
20,929

 
(10,728
)
 
10,201

Total
$
1,628,808

 
$
(359,486
)
 
$
1,269,322

 
$
1,884,378

 
$
(473,630
)
 
$
1,410,748
Schedule of amortization expenses
Amortization expense associated with finite-lived intangible assets and revenue reduction associated with the amortization of Permanent Withdrawal Fees for the years ended December 31, 2015, 2016 and 2017 are as follows:
 
 
Year Ended December 31,
 
 
2015
 
2016
 
2017
Customer relationships and Customer Inducements:
 
 

 
 

 
 

Amortization expense included in depreciation and amortization
 
$
43,614

 
$
84,349

 
$
115,387

Revenue reduction associated with amortization of Permanent Withdrawal Fees
 
11,670

 
12,217

 
11,253

Other finite-lived intangible assets:
 
 

 
 

 
 

Amortization expense included in depreciation and amortization
 
631

 
2,451

 
706
Estimated amortization expense for existing intangible assets for the next five succeeding fiscal years
Estimated amortization expense for existing finite-lived intangible assets (excluding deferred financing costs, as disclosed in Note 2.j.) is as follows:
 
Estimated Amortization
 
Included in Depreciation
and Amortization
 
Charged to Revenues
2018
$
110,388

 
$
8,097

2019
108,604

 
6,172

2020
105,341

 
4,657

2021
103,358

 
3,166

2022
102,335

 
2,142
Schedule of amortization of deferred financing costs
Estimated amortization expense for deferred financing costs, which are amortized as a component of interest expense, is as follows:
 
Estimated Amortization of
Deferred Financing Costs
2018
$
13,853

2019
13,614

2020
13,466

2021
12,334

2022
10,306

Thereafter
22,667
Components of prepaid expenses
Accrued expenses, with items greater than 5% of total current liabilities are shown separately, and consist of the following:
 
December 31,
 
2016
 
2017
Interest
$
76,615

 
$
71,176

Payroll and vacation
68,067

 
67,379

Incentive compensation
70,117

 
72,006

Dividend
5,625

 
172,102

Other
229,833

 
270,483

Accrued expenses
$
450,257

 
$
653,146
Stock-based compensation expense for Employee Stock-Based Awards related to continuing operations
Stock-based compensation expense for Employee Stock-Based Awards included in the accompanying Consolidated Statements of Operations is as follows:
 
Year Ended December 31,
 
2015
 
2016
 
2017
Cost of sales (excluding depreciation and amortization)
$
220

 
$
110

 
$
108

Selling, general and administrative expenses
27,365

 
28,866

 
29,911

Total stock-based compensation
$
27,585

 
$
28,976

 
$
30,019
Summary of the weighted average assumptions used for stock option grants
The weighted average assumptions used for grants in the year ended December 31:
Weighted Average Assumptions
 
2015
 
2016
 
2017
Expected volatility
 
28.4
%
 
27.2
%
 
25.7
%
Risk-free interest rate
 
1.70
%
 
1.32
%
 
1.96
%
Expected dividend yield
 
5
%
 
7
%
 
6
%
Expected life
 
5.4 years

 
5.6 years

 
5.0 years
Summary of stock option activity
A summary of our stock options outstanding as of December 31, 2017 by vesting terms is as follows:
 
December 31, 2017
 
Stock Options Outstanding
 
% of
Stock Options Outstanding
Three-year vesting period (10 year contractual life)
3,285,529

 
89.5
%
Five-year vesting period (10 year contractual life)
386,211

 
10.5
%
 
3,671,740

 
100.0
%
A summary of stock option activity for the year ended December 31, 2017 is as follows:
 
Options
 
Weighted
Average
Exercise
Price
 
Weighted
Average
Remaining
Contractual
Term (Years)
 
Aggregate
Intrinsic
Value
Outstanding at December 31, 2016
3,451,698

 
$
31.79

 
 
 
 

Granted
1,058,445

 
37.05

 
 
 
 

Exercised
(742,131
)
 
26.09

 
 
 
 

Forfeited
(94,491
)
 
33.79

 
 
 
 

Expired
(1,781
)
 
38.83

 
 
 
 

Outstanding at December 31, 2017
3,671,740

 
$
34.41

 
7.28
 
$
16,373

Options exercisable at December 31, 2017
1,637,103

 
$
31.53

 
5.69
 
$
12,806

Options expected to vest
1,948,054

 
$
36.73

 
8.55
 
$
3,432
Aggregate intrinsic value of stock options exercised
The aggregate intrinsic value of stock options exercised for the years ended December 31, 2015, 2016 and 2017 is as follows:
 
Year Ended December 31,
 
2015
 
2016
 
2017
Aggregate intrinsic value of stock options exercised
$
9,056

 
$
18,298

 
$
8,485
Summary of restricted stock and RSU activity
Cash dividends accrued and paid on RSUs for the years ended December 31, 2015, 2016 and 2017, are as follows:
 
Year Ended December 31,
 
2015
 
2016
 
2017
Cash dividends accrued on RSUs
$
2,508

 
$
2,525

 
$
2,590

Cash dividends paid on RSUs
2,927

 
2,363

 
2,370

 
Year Ended December 31,
 
2015
 
2016
 
2017
Fair value of RSUs vested
$
24,345

 
$
22,236

 
$
19,825


A summary of RSU activity for the year ended December 31, 2017 is as follows:
 
RSUs
 
Weighted-
Average
Grant-Date
Fair Value
Non-vested at December 31, 2016
1,163,393

 
$
33.21

Granted
640,530

 
36.87

Vested
(604,037
)
 
32.82

Forfeited
(128,417
)
 
35.21

Non-vested at December 31, 2017
1,071,469

 
$
35.38

The fair value of RSUs vested during the years ended December 31, 2015, 2016 and 2017, are as follows:
 
Year Ended December 31,
 
2015
 
2016
 
2017
Fair value of RSUs vested
$
24,345

 
$
22,236

 
$
19,825
Schedule of performance units
Cash dividends accrued and paid on PUs for the years ended December 31, 2015, 2016 and 2017, are as follows:
 
Year Ended December 31,
 
2015
 
2016
 
2017
Cash dividends accrued on PUs
$
874

 
$
1,078

 
$
1,290

Cash dividends paid on PUs
1,015

 
645

 
205

The fair value of earned PUs that vested during the years ended December 31, 2015, 2016 and 2017, is as follows:
 
Year Ended December 31,
 
2015
 
2016
 
2017
Fair value of earned PUs that vested
$
2,107

 
$
5,748

 
$
1,242
Summary of Performance Unit (PU) activity
 
Year Ended December 31,
 
2015
 
2016
 
2017
Fair value of earned PUs that vested
$
2,107

 
$
5,748

 
$
1,242


A summary of PU activity for the year ended December 31, 2017 is as follows:
 
Original
PU Awards
 
PU Adjustment(1)
 
Total
PU Awards
 
Weighted-
Average
Grant-Date
Fair Value
Non-vested at December 31, 2016
559,340

 
(121,038
)
 
438,302

 
$
33.67

Granted
229,692

 
—

 
229,692

 
41.93

Vested
(42,484
)
 
—

 
(42,484
)
 
29.23

Forfeited/Performance or Market Conditions Not Achieved
(28,670
)
 
(129,029
)
 
(157,699
)
 
30.25

Non-vested at December 31, 2017
717,878

 
(250,067
)
 
467,811

 
$
39.28

_______________________________________________________________________________

(1)
Represents an increase or decrease in the number of original PUs awarded based on either the final performance criteria or market condition achievement at the end of the performance period of such PUs or a change in estimated awards based on the forecasted performance against the predefined targets.
Calculation of basic and diluted net income (loss) per share attributable to the entity
The calculation of basic and diluted income (loss) per share for the years ended December 31, 2015, 2016 and 2017 is as follows:
 
Year Ended December 31,
 
2015
 
2016
 
2017
Income (loss) from continuing operations
$
125,203

 
$
103,880

 
$
191,723

Less: Net income (loss) attributable to noncontrolling interests
1,962

 
2,409

 
1,611

Income (loss) from continuing operations (utilized in numerator of Earnings Per Share calculation)
$
123,241

 
$
101,471

 
$
190,112

Income (loss) from discontinued operations, net of tax
$
—

 
$
3,353

 
$
(6,291
)
Net income (loss) attributable to Iron Mountain Incorporated
$
123,241

 
$
104,824

 
$
183,821

 
 
 
 
 
 
Weighted-average shares—basic
210,764,000

 
246,178,000

 
265,898,000

Effect of dilutive potential stock options
834,659

 
574,954

 
431,071

Effect of dilutive potential RSUs and PUs
519,426

 
514,044

 
509,235

Effect of Over-Allotment Option(1)
—

 
—

 
6,278

Weighted-average shares—diluted
212,118,085

 
247,266,998

 
266,844,584

 
 
 
 
 
 
Earnings (losses) per share—basic:
 

 
 

 
 

Income (loss) from continuing operations
$
0.59

 
$
0.41

 
$
0.71

Income (loss) from discontinued operations, net of tax
—

 
0.01

 
(0.02
)
Net income (loss) attributable to Iron Mountain Incorporated(2)
$
0.58

 
$
0.43

 
$
0.69

 
 
 
 
 
 
Earnings (losses) per share—diluted:
 

 
 

 
 

Income (loss) from continuing operations
$
0.59

 
$
0.41

 
$
0.71

Income (loss) from discontinued operations, net of tax
—

 
0.01

 
(0.02
)
Net income (loss) attributable to Iron Mountain Incorporated(2)
$
0.58

 
$
0.42

 
$
0.69

 
 
 
 
 
 
Antidilutive stock options, RSUs and PUs, excluded from the calculation
1,435,297

 
1,790,362

 
2,326,344

___________________________________________________________________

(1)
See Note 13.
(2)
Columns may not foot due to rounding.
Roll forward of allowance for doubtful accounts and credit memo reserves
Rollforward of allowance for doubtful accounts and credit memo reserves is as follows:
Year Ended December 31,
 
Balance at
Beginning of
the Year
 
Credit Memos
Charged to
Revenue
 
Allowance for
Bad Debts
Charged to
Expense
 
Other(1)
 
Deductions(2)
 
Balance at
End of
the Year
2015
 
$
32,141

 
$
42,497

 
$
15,326

 
$
(4,511
)
 
$
(54,006
)
 
$
31,447

2016
 
31,447

 
37,616

 
8,705

 
16,528

 
(50,006
)
 
44,290

2017
 
44,290

 
38,966

 
14,826

 
1,905

 
(53,339
)
 
46,648

_______________________________________________________________________________
(1)
Primarily consists of recoveries of previously written-off accounts receivable, allowances of businesses acquired (primarily Recall in 2016) and the impact associated with currency translation adjustments.
(2)
Primarily consists of the issuance of credit memos and the write-off of accounts receivable.
Assets and liabilities carried at fair value measured on a recurring basis
The assets and liabilities carried at fair value and measured on a recurring basis as of December 31, 2016 and 2017, respectively, are as follows:
 
 
 
Fair Value Measurements at
December 31, 2016 Using
Description
Total Carrying
Value at
December 31,
2016
 
Quoted prices
in active
markets
(Level 1)
 
Significant other
observable
inputs
(Level 2)
 
Significant
unobservable
inputs
(Level 3)
Time Deposits(1)
$
22,240

 
$
—

 
$
22,240

 
$
—

Trading Securities
10,659

 
10,181

(2)
478

(1)
—

 
 
 
Fair Value Measurements at
December 31, 2017 Using
Description
Total Carrying
Value at
December 31,
2017
 
Quoted prices
in active
markets
(Level 1)
 
Significant other
observable
inputs
(Level 2)
 
Significant
unobservable
inputs
(Level 3)
Money Market Funds(1)
$
585,000

 
$
—

 
$
585,000

 
$
—

Time Deposits(1)
24,482

 
$
—

 
24,482

 
—

Trading Securities
11,784

 
11,279

(2)
505

(3)
—

Derivative Assets(4)
1,579

 
—

 
1,579

 
—

Derivative Liabilities(4)
2,329

 
—

 
2,329

 
—

_______________________________________________________________________________

(1)
Money market funds and time deposits are measured based on quoted prices for similar assets and/or subsequent transactions.
(2)
Certain trading securities are measured at fair value using quoted market prices.
(3)
Certain trading securities are measured based on inputs other than quoted market prices that are observable.
(4)
Derivative assets and liabilities relate to short-term (six months or less) foreign currency contracts that we have entered into to hedge certain of our foreign exchange intercompany exposures, as more fully disclosed at Note 3. We calculate the value of such forward contracts by adjusting the spot rate utilized at the balance sheet date for translation purposes by an estimate of the forward points observed in active markets.
Schedule of changes in accumulated other comprehensive items, net
The changes in accumulated other comprehensive items, net for the years ended December 31, 2015, 2016 and 2017 are as follows:
 
Foreign Currency
Translation
Adjustments
 
Market Value
Adjustments
for Securities
 
Total
Balance as of December 31, 2014
$
(76,010
)
 
$
979

 
$
(75,031
)
Other comprehensive (loss) income:
 
 
 
 
 
Foreign currency translation adjustment
(99,641
)
 
—

 
(99,641
)
Market value adjustments for securities
—

 
(245
)
 
(245
)
Total other comprehensive (loss) income
(99,641
)
 
(245
)
 
(99,886
)
Balance as of December 31, 2015
$
(175,651
)
 
$
734

 
$
(174,917
)
Other comprehensive (loss) income:
 

 
 

 
 

Foreign currency translation adjustment
(36,922
)
 
—

 
(36,922
)
Market value adjustments for securities
—

 
(734
)
 
(734
)
Total other comprehensive (loss) income
(36,922
)
 
(734
)
 
(37,656
)
Balance as of December 31, 2016
$
(212,573
)
 
$
—

 
$
(212,573
)
Other comprehensive (loss) income:
 

 
 

 
 

Foreign currency translation adjustment(1)
108,584

 
—

 
108,584

Market value adjustments for securities
—

 
—

 
—

Total other comprehensive income (loss)
108,584

 
—

 
108,584

Balance as of December 31, 2017
$
(103,989
)
 
$
—

 
$
(103,989
)
______________________________________________________________
(1)
During the year ended December 31, 2017, approximately $29,100 of cumulative translation adjustment associated with our businesses in Russia and Ukraine was reclassified from accumulated other comprehensive items, net and was included in the gain on sale associated with the Russia and Ukraine Divestment (see Note 14).
Other expense (income), net
Other expense (income), net consists of the following:
 
Year Ended December 31,
 
2015
 
2016
 
2017
Foreign currency transaction losses, net
$
70,851

 
$
20,413

 
$
43,248

Debt extinguishment expense, net
27,305

 
9,283

 
78,368

Other, net
434

 
14,604

 
(42,187
)
 
$
98,590

 
$
44,300

 
$
79,429