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Summary of Significant Accounting Policies (Tables)
 6 Months Ended
Jun. 30, 2018
Accounting Policies [Abstract]  
Schedule of New Accounting Pronouncements and Changes in Accounting Principles
The Contract Fulfillment Costs recorded as a result of the adoption of ASU 2014-09 as of January 1, 2018 and June 30, 2018 are as follows:
 
 
 
 
January 1, 2018 (Date of Adoption of
ASU 2014-09)
 
 
June 30, 2018
Description
 
Location in Balance Sheet
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
 
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Carrying Amount
Commissions asset
 
Other (within Other Assets, Net)
 
$
42,072

 
$
(21,173
)
 
$
20,899

 
 
$
48,833

 
$
(28,355
)
 
$
20,478

Intake Costs asset
 
Other (within Other Assets, Net)
 
31,604

 
(14,954
)
 
16,650

 
 
35,643

 
(20,135
)
 
15,508

The following table presents certain components of our Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2018 as reported and as if we had not adopted ASU 2014-09 on January 1, 2018:
 
Three Months Ended
June 30, 2018
 
Six Months Ended
June 30, 2018
 
As Reported
 
If ASU 2014-09 was not adopted
 
As Reported
 
If ASU 2014-09 was not adopted
Revenues
$
1,060,823

 
$
1,057,608

 
$
2,103,281

 
$
2,098,872

Operating Income
$
203,359

 
$
201,664

 
$
367,918

 
$
366,983

Income from Continuing Operations
$
93,903

 
$
92,208

 
$
139,517

 
$
138,582

 
 
 
 
 
 
 
 
Per Share Income from Continuing Operations - Basic
$
0.33

 
$
0.32

 
$
0.49

 
$
0.48

Per Share Income from Continuing Operations - Diluted
$
0.33

 
$
0.32

 
$
0.49

 
$
0.48

Deferred revenue liabilities associated with billed Intake Costs recorded as a result of the adoption of ASU 2014-09 as of January 1, 2018 and June 30, 2018 are as follows:
Description
 
Location in Balance Sheet
 
January 1, 2018 (Date of Adoption of ASU 2014-09)
 
June 30, 2018
Deferred revenue - Current
 
Deferred revenue
 
$
9,671

 
$
10,140

Deferred revenue - Long-term
 
Other Long-term Liabilities
 
9,877

 
7,467
Schedule of amortization expense associated with commissions asset and Intake Costs
Amortization expense associated with the commissions asset and Intake Costs asset for the three and six months ended June 30, 2018 are as follows:
 
Three Month Ended June 30, 2018
 
Six Months Ended June 30, 2018
Commissions asset
 
$
3,793

 
 
$
7,380

Intake Costs asset
 
2,891

 
 
5,621
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 six months ended June 30, 2018 are 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, 2017
$
2,474,829

 
$
551,726

 
$
453,537

 
$
846,721

 
$
—

 
$
60,048

 
$
4,386,861

Non-deductible goodwill acquired during the year
—

 
—

 
—

 
5,330

 
443,368

 
—

 
448,698

Fair value and other adjustments(1)
(376
)
 
—

 
—

 
7,797

 
—

 
4,704

 
12,125

Currency effects
(9,257
)
 
(2,527
)
 
(9,353
)
 
(43,373
)
 
(2
)
 
(590
)
 
(65,102
)
Gross Balance as of June 30, 2018
$
2,465,196

 
$
549,199

 
$
444,184

 
$
816,475

 
$
443,366

 
$
64,162

 
$
4,782,582

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

 
$
53,875

 
$
57,048


$
288

 
$
—

 
$
—

 
$
316,594

Currency effects
(327
)
 
(82
)
 
(237
)
 
—

 
—

 
—

 
(646
)
Accumulated Amortization Balance as of June 30, 2018
$
205,056

 
$
53,793

 
$
56,811

 
$
288

 
$
—

 
$
—

 
$
315,948

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

 
$
497,851

 
$
396,489

 
$
846,433

 
$
—

 
$
60,048

 
$
4,070,267

Net Balance as of June 30, 2018
$
2,260,140

 
$
495,406

 
$
387,373

 
$
816,187

 
$
443,366

 
$
64,162

 
$
4,466,634

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

 
$
—

 
$
46,500

 
$
—

 
$
—

 
$
3,011

 
$
135,420

Accumulated Goodwill Impairment Balance as of June 30, 2018
$
85,909

 
$
—

 
$
46,500

 
$
—

 
$
—

 
$
3,011

 
$
135,420

_______________________________________________________________________________
(1)
Total fair value and other adjustments include $12,125 in net adjustments primarily related to property, plant and equipment, customer relationship intangible assets and deferred income taxes and other liabilities.

Components of amortizable intangible assets
The components of our finite-lived intangible assets related to customer relationship value, customer inducements and data center lease-based intangible assets and liabilities as of December 31, 2017 and June 30, 2018 are as follows:
 
December 31, 2017
 
June 30, 2018
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Net Carrying
Amount
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Net Carrying
Amount
Assets:
 
 
 
 
 
 
 
 
 
 
 
Customer relationship intangible assets
$
1,704,105

 
$
(395,278
)
 
$
1,308,827

 
$
1,690,147

 
$
(436,076
)
 
$
1,254,071

Customer inducements(1)
140,030

 
(66,981
)
 
73,049

 
57,555

 
(35,430
)
 
22,125

Data center lease-based intangible assets(2)
19,314

 
(643
)
 
18,671

 
276,936

 
(22,583
)
 
254,353

 
$
1,863,449

 
$
(462,902
)
 
$
1,400,547

 
$
2,024,638

 
$
(494,089
)
 
$
1,530,549

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Data center below-market leases
$
—

 
$
—

 
$
—

 
$
12,338

 
$
(761
)
 
$
11,577

_______________________________________________________________________________

(1)
The gross carrying amount, accumulated amortization and net carrying amount of customer inducements as of December 31, 2017 includes Free Move Costs, which were capitalized as Customer Inducements prior to the adoption of ASU 2014-09. Subsequent to the adoption of ASU 2014-09, Free Move Costs are considered Contract Fulfillment Costs and Customer Inducements consist exclusively of Permanent Withdrawal Fees. Contract Fulfillment Costs are included in Other, a component of Other Assets, Net, in the accompanying Condensed Consolidated Balance Sheet as of June 30, 2018. See Note 2.c. for information regarding Contract Fulfillment Costs included in our Condensed Consolidated Balance Sheet as of June 30, 2018.

(2)
Includes Data Center In-Place Leases, Data Center Tenant Relationships and Data Center Above-Market Leases.

The other finite-lived intangible assets as of December 31, 2017 and June 30, 2018 are as follows:
 
December 31, 2017
 
June 30, 2018
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Net Carrying
Amount
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Net Carrying
Amount
Other finite-lived intangible assets (included in other assets, net)
$
20,929

 
$
(10,728
)
 
$
10,201

 
$
20,365

 
$
(12,611
)
 
$
7,754
Schedule of amortization expenses
Amortization expense associated with finite-lived intangible assets, revenue reduction associated with the amortization of Permanent Withdrawal Fees and net revenue reduction associated with the amortization of Data Center Above-Market Leases and Data Center Below-Market Leases for the three and six months ended June 30, 2017 and 2018 are as follows:
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
 
2017
 
2018
 
2017
 
2018
Amortization expense included in depreciation and amortization associated with:
 
 
 
 
 
 
 
 
Customer relationship and customer inducement intangible assets
 
$
24,611

 
$
28,813

 
$
47,410

 
$
57,619

Data center in-place leases and tenant relationships
 
—

 
7,563

 
—

 
18,401

Other finite-lived intangible assets
 
1,173

 
1,659

 
3,489

 
2,844

Revenue reduction associated with amortization of:
 
 
 
 
 
 
 
 
Permanent withdrawal fees
 
$
2,748

 
$
2,968

 
$
5,906

 
$
5,553

Data center above-market leases and data center below-market leases
 
—

 
1,293

 
—

 
2,372
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 Condensed Consolidated Statements of Operations is as follows:
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2017
 
2018
 
2017
 
2018
Cost of sales (excluding depreciation and amortization)
$
27

 
$
29

 
$
55

 
$
58

Selling, general and administrative expenses
8,516

 
8,660

 
15,037

 
16,015

Total stock-based compensation
$
8,543

 
$
8,689

 
$
15,092

 
$
16,073
Summary of stock option activity
A summary of stock option activity for the six months ended June 30, 2018 is as follows:
 
Stock Options
Outstanding at December 31, 2017
3,671,740

Granted
846,517

Exercised
(118,304
)
Forfeited
(23,334
)
Expired
(4,260
)
Outstanding at June 30, 2018
4,372,359

Options exercisable at June 30, 2018
2,409,054

Options expected to vest
1,844,046
Summary of restricted stock and RSU activity
The fair value of RSUs vested during the three and six months ended June 30, 2017 and 2018 is as follows:
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2017
 
2018
 
2017
 
2018
Fair value of RSUs vested
$
2,047

 
$
676

 
$
16,073

 
$
16,006

A summary of RSU activity for the six months ended June 30, 2018 is as follows:
 
RSUs
Non-vested at December 31, 2017
1,071,469

Granted
701,259

Vested
(455,224
)
Forfeited
(53,080
)
Non-vested at June 30, 2018
1,264,424
Schedule of performance units
The fair value of earned PUs that vested during the three and six months ended June 30, 2017 and 2018 is as follows:
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2017
 
2018
 
2017
 
2018
Fair value of earned PUs that vested
$
—

 
$
—

 
$
905

 
$
3,033
Summary of Performance Unit (PU) activity
A summary of PU activity for the six months ended June 30, 2018 is as follows:
 
Original
PU Awards
 
PU Adjustment(1)
 
Total
PU Awards
Non-vested at December 31, 2017
717,878

 
(250,067
)
 
467,811

Granted
353,507

 
—

 
353,507

Vested
(79,121
)
 
—

 
(79,121
)
Forfeited/Performance or Market Conditions Not Achieved
(12,368
)
 
(49,881
)
 
(62,249
)
Non-vested at June 30, 2018
979,896

 
(299,948
)
 
679,948

_______________________________________________________________________________

(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 three and six months ended June 30, 2017 and 2018 is as follows:
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2017
 
2018
 
2017
 
2018
Income (loss) from continuing operations
$
83,148

 
$
93,903

 
$
141,992

 
$
139,517

Less: Net income (loss) attributable to noncontrolling interests
2,492

 
142

 
2,874

 
610

Income (loss) from continuing operations (utilized in numerator of Earnings Per Share calculation)
$
80,656

 
$
93,761

 
$
139,118

 
$
138,907

(Loss) income from discontinued operations, net of tax
$
(2,026
)
 
$
(360
)
 
$
(2,363
)
 
$
(822
)
Net income (loss) attributable to Iron Mountain Incorporated
$
78,630

 
$
93,401

 
$
136,755

 
$
138,085

 
 
 
 
 
 
 
 
Weighted-average shares—basic
264,217,000

 
285,984,000

 
264,036,000

 
285,622,000

Effect of dilutive potential stock options
395,044

 
237,708

 
428,403

 
243,636

Effect of dilutive potential RSUs and PUs
318,375

 
347,543

 
405,640

 
415,929

Weighted-average shares—diluted
264,930,419

 
286,569,251

 
264,870,043

 
286,281,565

 
 
 
 
 
 
 
 
Earnings (losses) per share—basic:
 

 
 

 
 

 
 

Income (loss) from continuing operations
$
0.31

 
$
0.33

 
$
0.53

 
$
0.49

(Loss) income from discontinued operations, net of tax
(0.01
)
 
—

 
(0.01
)
 
—

Net income (loss) attributable to Iron Mountain Incorporated(1)
$
0.30

 
$
0.33

 
$
0.52

 
$
0.48

 
 
 
 
 
 
 
 
Earnings (losses) per share—diluted:
 

 
 

 
 

 
 

Income (loss) from continuing operations
$
0.30

 
$
0.33

 
$
0.53

 
$
0.49

(Loss) income from discontinued operations, net of tax
(0.01
)
 
—

 
(0.01
)
 
—

Net income (loss) attributable to Iron Mountain Incorporated(1)
$
0.30

 
$
0.33

 
$
0.52

 
$
0.48

 
 
 
 
 
 
 
 
Antidilutive stock options, RSUs and PUs, excluded from the calculation
2,701,129

 
3,272,502

 
2,597,692

 
3,257,322


_______________________________________________________________________________

(1) Columns may not foot due to rounding.
Assets and liabilities carried at fair value measured on a recurring basis
The assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2017 and June 30, 2018, respectively, are as follows:
 
 
 
 
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

 
 
 
—

 
 
 
 
Fair Value Measurements at
June 30, 2018 Using
Description
 
Total Carrying
Value at
June 30,
2018
 
Quoted prices
in active
markets
(Level 1)
 
 
 
Significant other
observable
inputs
(Level 2)
 
 
 
Significant
unobservable
inputs
(Level 3)
Time Deposits(1)
 
$
5,759

 
$
—

 
 
 
$
5,759

 
 
 
$
—

Trading Securities
 
11,265

 
10,529

 
(2)
 
736

 
(3)
 
—

Derivative Assets(4)
 
318

 
—

 
 
 
318

 
 
 
—

Derivative Liabilities(4)
 
3,413

 
—

 
 
 
3,413

 
 
 
—

Interest Rate Swap Agreements Assets(5)
 
2,203

 
—

 
 
 
2,203

 
 
 
—

_______________________________________________________________________________

(1)
Money market funds and time deposits are measured based on quoted prices for similar assets and/or subsequent transactions. At December 31, 2017, we had money market funds with 12 "Triple A" rated money market funds and time deposits with seven global banks. At June 30, 2018, we had no money market funds and time deposits with seven global banks.
(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 in 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.
(5)
We have entered into interest rate swap agreements to hedge certain of our interest rate exposures, as more fully disclosed in Note 3. The interest rate swap agreements are designated as cash flow hedges and are measured based on inputs other than quoted market prices that are observable.
Schedule of changes in accumulated other comprehensive items, net
The changes in accumulated other comprehensive items, net for the three and six months ended June 30, 2017, respectively, are as follows:
 
Three Months Ended
June 30, 2017
 
Six Months Ended
June 30, 2017
 
Foreign
Currency
Translation
Adjustments
 
Total
 
Foreign
Currency
Translation
Adjustments
 
Total
Beginning of Period
$
(161,239
)
 
$
(161,239
)
 
$
(212,573
)
 
$
(212,573
)
Other comprehensive income (loss):
 
 
 
 
 
 
 
Foreign currency translation adjustments(1)
7,649

 
7,649

 
58,983

 
58,983

Total other comprehensive income (loss)
7,649

 
7,649

 
58,983

 
58,983

Balance as of June 30, 2017
$
(153,590
)
 
$
(153,590
)
 
$
(153,590
)
 
$
(153,590
)
______________________________________________________________
(1)
During the three and six months ended June 30, 2017, approximately $29,100 of cumulative translation adjustments 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 (as defined and discussed more fully in Note 10).
The changes in accumulated other comprehensive items, net for the three and six months ended June 30, 2018, respectively, are as follows:
 
Three Months Ended
June 30, 2018
 
Six Months Ended
June 30, 2018
 
Foreign
Currency
Translation
Adjustments
 
Fair Value Adjustments for Interest Rate Swap Agreements
 
Total
 
Foreign
Currency
Translation
Adjustments
 
Fair Value Adjustments for Interest Rate Swap Agreements
 
Total
Beginning of Period
$
(73,897
)
 
$
(185
)
 
$
(74,082
)
 
$
(103,989
)
 
$
—

 
$
(103,989
)
Other comprehensive (loss) income:
 
 
 
 
 
 


 


 


Foreign currency translation adjustments
(135,756
)
 
—

 
(135,756
)
 
(105,664
)
 
—

 
(105,664
)
Fair value adjustments for interest rate swap agreements
—

 
2,388

 
2,388

 
—

 
2,203

 
2,203

Total other comprehensive (loss) income
(135,756
)
 
2,388

 
(133,368
)
 
(105,664
)
 
2,203

 
(103,461
)
Balance as of June 30, 2018
$
(209,653
)
 
$
2,203

 
$
(207,450
)
 
$
(209,653
)
 
$
2,203

 
$
(207,450
)
Other expense (income), net
Other (income) expense, net for the three and six months ended June 30, 2017 and 2018 consists of the following:
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2017
 
2018
 
2017
 
2018
Foreign currency transaction losses (gains), net
$
20,199

 
$
(18,624
)
 
$
16,035

 
$
3,161

Other, net
(39,565
)
 
(432
)
 
(41,765
)
 
(2,066
)
 
$
(19,366
)
 
$
(19,056
)
 
$
(25,730
)
 
$
1,095