(Mark One) | |
ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Quarterly Period Ended March 31, 2019 | |
OR | |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Transition Period from to | |
Commission file number 1-13045 |
Delaware (State or other Jurisdiction of Incorporation or Organization) | 23-2588479 (I.R.S. Employer Identification No.) |
Large accelerated filer ý | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o | Emerging growth company o |
Page | |
March 31, 2019 | December 31, 2018 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 161,475 | $ | 165,485 | |||
Accounts receivable (less allowances of $42,074 and $43,584 as of March 31, 2019 and December 31, 2018, respectively) | 837,521 | 846,889 | |||||
Prepaid expenses and other | 210,854 | 195,740 | |||||
Total Current Assets | 1,209,850 | 1,208,114 | |||||
Property, Plant and Equipment: | |||||||
Property, plant and equipment | 7,738,705 | 7,600,949 | |||||
Less—Accumulated depreciation | (3,213,122 | ) | (3,111,392 | ) | |||
Property, Plant and Equipment, Net | 4,525,583 | 4,489,557 | |||||
Other Assets, Net: | |||||||
Goodwill | 4,465,378 | 4,441,030 | |||||
Customer relationships, customer inducements and data center lease-based intangibles | 1,495,338 | 1,506,522 | |||||
Operating lease right-of-use assets (see Note 2.d.) | 1,791,536 | — | |||||
Other | 201,678 | 207,024 | |||||
Total Other Assets, Net | 7,953,930 | 6,154,576 | |||||
Total Assets | $ | 13,689,363 | $ | 11,852,247 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities: | |||||||
Current portion of long-term debt | $ | 125,142 | $ | 126,406 | |||
Accounts payable | 283,709 | 318,765 | |||||
Accrued expenses and other current liabilities (includes current portion of operating lease liabilities, see Note 2.d.) | 839,968 | 752,684 | |||||
Deferred revenue | 266,314 | 264,823 | |||||
Total Current Liabilities | 1,515,133 | 1,462,678 | |||||
Long-term Debt, net of current portion | 8,365,737 | 8,016,417 | |||||
Long-term Operating Lease Liabilities, net of current portion (see Note 2.d.) | 1,656,659 | — | |||||
Other Long-term Liabilities | 127,127 | 111,331 | |||||
Deferred Rent (see Note 2.d.) | — | 121,864 | |||||
Deferred Income Taxes | 190,871 | 183,836 | |||||
Commitments and Contingencies (see Note 7) | |||||||
Redeemable Noncontrolling Interests | 73,102 | 70,532 | |||||
Equity: | |||||||
Iron Mountain Incorporated Stockholders' Equity: | |||||||
Preferred stock (par value $0.01; authorized 10,000,000 shares; none issued and outstanding) | — | — | |||||
Common stock (par value $0.01; authorized 400,000,000 shares; issued and outstanding 286,829,854 and 286,321,009 shares as of March 31, 2019 and December 31, 2018, respectively) | 2,868 | 2,863 | |||||
Additional paid-in capital | 4,264,978 | 4,263,348 | |||||
(Distributions in excess of earnings) Earnings in excess of distributions | (2,257,485 | ) | (2,116,367 | ) | |||
Accumulated other comprehensive items, net | (250,960 | ) | (265,664 | ) | |||
Total Iron Mountain Incorporated Stockholders' Equity | 1,759,401 | 1,884,180 | |||||
Noncontrolling Interests | 1,333 | 1,409 | |||||
Total Equity | 1,760,734 | 1,885,589 | |||||
Total Liabilities and Equity | $ | 13,689,363 | $ | 11,852,247 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Revenues: | |||||||
Storage rental | $ | 662,974 | $ | 651,149 | |||
Service | 390,889 | 391,309 | |||||
Total Revenues | 1,053,863 | 1,042,458 | |||||
Operating Expenses: | |||||||
Cost of sales (excluding depreciation and amortization) | 461,544 | 448,721 | |||||
Selling, general and administrative | 270,559 | 269,730 | |||||
Depreciation and amortization | 162,483 | 160,578 | |||||
Loss (Gain) on disposal/write-down of property, plant and equipment, net (see Note 2.l.) | 602 | (1,130 | ) | ||||
Total Operating Expenses | 895,188 | 877,899 | |||||
Operating Income (Loss) | 158,675 | 164,559 | |||||
Interest Expense, Net (includes Interest Income of $1,785 and $1,386 for the three months ended March 31, 2019 and 2018, respectively) | 102,436 | 97,626 | |||||
Other Expense (Income), Net | 15,210 | 20,151 | |||||
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes | 41,029 | 46,782 | |||||
Provision (Benefit) for Income Taxes | 10,553 | 1,168 | |||||
Income (Loss) from Continuing Operations | 30,476 | 45,614 | |||||
(Loss) Income from Discontinued Operations, Net of Tax | (24 | ) | (462 | ) | |||
Net Income (Loss) | 30,452 | 45,152 | |||||
Less: Net Income (Loss) Attributable to Noncontrolling Interests | 891 | 468 | |||||
Net Income (Loss) Attributable to Iron Mountain Incorporated | $ | 29,561 | $ | 44,684 | |||
Earnings (Losses) per Share—Basic: | |||||||
Income (Loss) from Continuing Operations | $ | 0.10 | $ | 0.16 | |||
Total (Loss) Income from Discontinued Operations, Net of Tax | $ | — | $ | — | |||
Net Income (Loss) Attributable to Iron Mountain Incorporated | $ | 0.10 | $ | 0.16 | |||
Earnings (Losses) per Share—Diluted: | |||||||
Income (Loss) from Continuing Operations | $ | 0.10 | $ | 0.16 | |||
Total (Loss) Income from Discontinued Operations, Net of Tax | $ | — | $ | — | |||
Net Income (Loss) Attributable to Iron Mountain Incorporated | $ | 0.10 | $ | 0.16 | |||
Weighted Average Common Shares Outstanding—Basic | 286,528 | 285,259 | |||||
Weighted Average Common Shares Outstanding—Diluted | 287,492 | 285,993 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Net Income (Loss) | $ | 30,452 | $ | 45,152 | |||
Other Comprehensive Income (Loss): | |||||||
Foreign Currency Translation Adjustment | 18,191 | 31,651 | |||||
Change in Fair Value of Interest Rate Swap Agreements | (2,674 | ) | (185 | ) | |||
Total Other Comprehensive Income (Loss) | 15,517 | 31,466 | |||||
Comprehensive Income (Loss) | 45,969 | 76,618 | |||||
Comprehensive Income (Loss) Attributable to Noncontrolling Interests | 1,704 | 2,027 | |||||
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated | $ | 44,265 | $ | 74,591 |
Iron Mountain Incorporated Stockholders' Equity | |||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | (Distributions in Excess of Earnings) Earnings in Excess of Distributions | Noncontrolling Interests | ||||||||||||||||||||||||||||
Total | Shares | Amounts | Accumulated Other Comprehensive Items, Net | Redeemable Noncontrolling Interests | |||||||||||||||||||||||||||
Balance, December 31, 2017 | $ | 2,298,842 | 283,110,183 | $ | 2,831 | $ | 4,164,562 | $ | (1,765,966 | ) | $ | (103,989 | ) | $ | 1,404 | $ | 91,418 | ||||||||||||||
Cumulative-effect adjustment for adoption of ASU 2014-09 (see Note 2.c.) | (29,461 | ) | — | — | — | (29,461 | ) | — | — | — | |||||||||||||||||||||
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation | 1,432 | 364,736 | 4 | 1,428 | — | — | — | — | |||||||||||||||||||||||
Issuance of shares associated with the Over-Allotment Option, net of underwriting discounts and offering expenses (see Note 12 to Notes to Consolidated Financial Statements included in our Annual Report) | 76,192 | 2,175,000 | 22 | 76,170 | — | — | — | — | |||||||||||||||||||||||
Issuance of shares through the At the Market (ATM) Equity Program, net of underwriting discounts and offering expenses (see Note 8) | 8,716 | 273,486 | 2 | 8,714 | — | — | — | — | |||||||||||||||||||||||
Change in value of redeemable noncontrolling interests | (117 | ) | — | — | (117 | ) | — | — | — | 117 | |||||||||||||||||||||
Parent cash dividends declared (see Note 8) | (169,044 | ) | — | — | — | (169,044 | ) | — | — | — | |||||||||||||||||||||
Foreign currency translation adjustment | 30,246 | — | — | — | — | 30,092 | 154 | 1,405 | |||||||||||||||||||||||
Change in fair value of interest rate swap agreements | (185 | ) | — | — | — | — | (185 | ) | — | — | |||||||||||||||||||||
Net income (loss) | 44,654 | — | — | — | 44,684 | — | (30 | ) | 498 | ||||||||||||||||||||||
Noncontrolling interests dividends | — | — | — | — | — | — | — | (561 | ) | ||||||||||||||||||||||
Balance, March 31, 2018 | $ | 2,261,275 | 285,923,405 | $ | 2,859 | $ | 4,250,757 | $ | (1,919,787 | ) | $ | (74,082 | ) | $ | 1,528 | $ | 92,877 |
Iron Mountain Incorporated Stockholders' Equity | |||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | (Distributions in Excess of Earnings) Earnings in Excess of Distributions | Noncontrolling Interests | ||||||||||||||||||||||||||||
Total | Shares | Amounts | Accumulated Other Comprehensive Items, Net | Redeemable Noncontrolling Interests | |||||||||||||||||||||||||||
Balance, December 31, 2018 | $ | 1,885,589 | 286,321,009 | $ | 2,863 | $ | 4,263,348 | $ | (2,116,367 | ) | $ | (265,664 | ) | $ | 1,409 | $ | 70,532 | ||||||||||||||
Cumulative-effect adjustment for adoption of ASU 2016-02 (see Note 2.d.) | 5,781 | — | — | — | 5,781 | — | — | — | |||||||||||||||||||||||
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation | 2,923 | 508,845 | 5 | 2,918 | — | — | — | — | |||||||||||||||||||||||
Change in equity related to redeemable noncontrolling interests | (1,288 | ) | — | — | (1,288 | ) | — | — | — | 1,288 | |||||||||||||||||||||
Parent cash dividends declared (see Note 8) | (176,460 | ) | — | — | — | (176,460 | ) | — | — | — | |||||||||||||||||||||
Foreign currency translation adjustment | 17,378 | — | — | — | — | 17,378 | — | 813 | |||||||||||||||||||||||
Change in fair value of interest rate swap agreements | (2,674 | ) | — | — | — | — | (2,674 | ) | — | ||||||||||||||||||||||
Net income (loss) | 29,485 | — | — | — | 29,561 | — | (76 | ) | 967 | ||||||||||||||||||||||
Noncontrolling interests dividends | — | — | — | — | — | — | — | (498 | ) | ||||||||||||||||||||||
Balance, March 31, 2019 | $ | 1,760,734 | 286,829,854 | $ | 2,868 | $ | 4,264,978 | $ | (2,257,485 | ) | $ | (250,960 | ) | $ | 1,333 | $ | 73,102 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Cash Flows from Operating Activities: | |||||||
Net income (loss) | $ | 30,452 | $ | 45,152 | |||
Loss (income) from discontinued operations | 24 | 462 | |||||
Adjustments to reconcile net income (loss) to cash flows from operating activities: | |||||||
Depreciation | 114,611 | 113,432 | |||||
Amortization (includes amortization of deferred financing costs and discounts of $4,108 and $3,553 for the three months ended March 31, 2019 and 2018, respectively) | 51,980 | 50,699 | |||||
Revenue reduction associated with amortization of customer inducements and above- and below-market leases | 3,645 | 3,664 | |||||
Stock-based compensation expense | 8,519 | 7,384 | |||||
Provision (benefit) for deferred income taxes | 1,423 | (387 | ) | ||||
Loss (gain) on disposal/write-down of property, plant and equipment, net (see Note 2.l.) | 602 | (1,130 | ) | ||||
Foreign currency transactions and other, net | 11,707 | 23,530 | |||||
(Increase) decrease in assets | (33,138 | ) | (74,884 | ) | |||
(Decrease) increase in liabilities | (72,758 | ) | (76,354 | ) | |||
Cash Flows from Operating Activities - Continuing Operations | 117,067 | 91,568 | |||||
Cash Flows from Operating Activities - Discontinued Operations | — | — | |||||
Cash Flows from Operating Activities | 117,067 | 91,568 | |||||
Cash Flows from Investing Activities: | |||||||
Capital expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations) | (184,765 | ) | (95,605 | ) | |||
Cash paid for acquisitions, net of cash acquired | (39,423 | ) | (1,428,974 | ) | |||
Acquisition of customer relationships | (23,934 | ) | (12,602 | ) | |||
Customer inducements | (2,817 | ) | (130 | ) | |||
Contract fulfillment costs and third-party commissions | (41,161 | ) | (5,314 | ) | |||
Investments in joint ventures (see Note 9) | (19,222 | ) | — | ||||
Proceeds from sales of property and equipment and other, net | 105 | (19,387 | ) | ||||
Cash Flows from Investing Activities - Continuing Operations | (311,217 | ) | (1,562,012 | ) | |||
Cash Flows from Investing Activities - Discontinued Operations | — | — | |||||
Cash Flows from Investing Activities | (311,217 | ) | (1,562,012 | ) | |||
Cash Flows from Financing Activities: | |||||||
Repayment of revolving credit facility, term loan facilities and other debt | (1,351,242 | ) | (4,410,656 | ) | |||
Proceeds from revolving credit facility, term loan facilities and other debt | 1,723,462 | 5,496,491 | |||||
Debt repayment and equity distribution to noncontrolling interests | (498 | ) | (561 | ) | |||
Parent cash dividends | (178,023 | ) | (169,006 | ) | |||
Net proceeds associated with the Over-Allotment Option | — | 76,192 | |||||
Net proceeds associated with the At the Market (ATM) Program | — | 8,716 | |||||
Net (payments) proceeds associated with employee stock-based awards | (5,963 | ) | (5,950 | ) | |||
Payment of debt financing and stock issuance costs | — | (9,974 | ) | ||||
Cash Flows from Financing Activities - Continuing Operations | 187,736 | 985,252 | |||||
Cash Flows from Financing Activities - Discontinued Operations | — | — | |||||
Cash Flows from Financing Activities | 187,736 | 985,252 | |||||
Effect of Exchange Rates on Cash and Cash Equivalents | 2,404 | 1,984 | |||||
(Decrease) Increase in Cash and Cash Equivalents | (4,010 | ) | (483,208 | ) | |||
Cash and Cash Equivalents, including Restricted Cash, Beginning of Period | 165,485 | 925,699 | |||||
Cash and Cash Equivalents, including Restricted Cash, End of Period | $ | 161,475 | $ | 442,491 | |||
Supplemental Information: | |||||||
Cash Paid for Interest | $ | 136,667 | $ | 122,027 | |||
Cash Paid for Income Taxes, Net | $ | 15,141 | $ | 22,292 | |||
Non-Cash Investing and Financing Activities: | |||||||
Financing Leases (see Note 2.d.) | $ | 7,523 | $ | 13,877 | |||
Accrued Capital Expenditures | $ | 75,824 | $ | 36,760 | |||
Accrued Purchase Price and Other Holdbacks | $ | 1,042 | $ | 149 | |||
Dividends Payable | $ | 180,422 | $ | 172,140 | |||
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 | |||||||||||||||||||||
Goodwill balance, net of accumulated amortization as of December 31, 2018 | $ | 2,251,795 | $ | 493,491 | $ | 381,806 | $ | 818,223 | $ | 425,956 | $ | 69,759 | $ | 4,441,030 | |||||||||||||
Deductible goodwill acquired during the year | 5,501 | — | — | — | — | — | 5,501 | ||||||||||||||||||||
Non-deductible goodwill acquired during the year | — | — | 4,991 | 3,767 | — | 1,874 | 10,632 | ||||||||||||||||||||
Fair value and other adjustments(1) | 31 | — | 92 | 3,350 | (871 | ) | (468 | ) | 2,134 | ||||||||||||||||||
Currency effects | 3,921 | 1,067 | 1,393 | 1,126 | (1,566 | ) | 140 | 6,081 | |||||||||||||||||||
Goodwill balance, net accumulated amortization as of March 31, 2019 | $ | 2,261,248 | $ | 494,558 | $ | 388,282 | $ | 826,466 | $ | 423,519 | $ | 71,305 | $ | 4,465,378 | |||||||||||||
Accumulated Goodwill Impairment Balance as of December 31, 2018 | $ | 85,909 | $ | — | $ | 46,500 | $ | — | $ | — | $ | 3,011 | $ | 135,420 | |||||||||||||
Accumulated Goodwill Impairment Balance as of March 31, 2019 | $ | 85,909 | $ | — | $ | 46,500 | $ | — | $ | — | $ | 3,011 | $ | 135,420 |
(1) | Total fair value and other adjustments primarily include $2,565 in net adjustments related to property, plant and equipment, customer relationships and data center lease-based intangible assets and deferred income taxes and other liabilities offset by $431 of cash received related to certain acquisitions completed in 2018. |
March 31, 2019 | December 31, 2018 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Assets: | |||||||||||||||||||||||
Customer relationship intangible assets | $ | 1,754,794 | $ | (482,971 | ) | $ | 1,271,823 | $ | 1,718,919 | $ | (455,705 | ) | $ | 1,263,214 | |||||||||
Customer inducements | 51,405 | (28,711 | ) | 22,694 | 56,478 | (34,181 | ) | 22,297 | |||||||||||||||
Data center lease-based intangible assets(1) | 265,834 | (65,013 | ) | 200,821 | 271,818 | (50,807 | ) | 221,011 | |||||||||||||||
Third-party commissions asset(2) | 30,861 | (737 | ) | 30,124 | 30,071 | (1,089 | ) | 28,982 | |||||||||||||||
$ | 2,102,894 | $ | (577,432 | ) | $ | 1,525,462 | $ | 2,077,286 | $ | (541,782 | ) | $ | 1,535,504 | ||||||||||
Liabilities: | |||||||||||||||||||||||
Data center below-market leases | $ | 12,715 | $ | (2,451 | ) | $ | 10,264 | $ | 12,318 | $ | (1,642 | ) | $ | 10,676 |
(1) | Includes data center in-place lease intangible assets, data center tenant relationship intangible assets and data center above-market in-place lease intangible assets. |
(2) | Third-party commissions asset is included in Other, a component of Other assets, net in the accompanying Condensed Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018. The third-party commissions asset is primarily comprised of additional payments associated with the execution of future customer contracts through the one-year anniversary of the acquisition of IODC, as described in Note 3. |
March 31, 2019 | December 31, 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, a component of other assets, net) | $ | 20,290 | $ | (15,794 | ) | $ | 4,496 | $ | 20,310 | $ | (14,798 | ) | $ | 5,512 |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
Amortization expense included in depreciation and amortization associated with: | ||||||||
Customer relationship and customer inducement intangible assets | $ | 27,881 | $ | 28,806 | ||||
Data center in-place leases and tenant relationships | 12,609 | 10,838 | ||||||
Third-party commissions asset and other finite-lived intangible assets | 757 | 1,185 | ||||||
Revenue reduction associated with amortization of: | ||||||||
Customer inducements | $ | 2,740 | $ | 2,585 | ||||
Data center above-market leases and data center below-market leases | 905 | 1,079 |
March 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||
Description | Location in Balance Sheet | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||
Intake Costs asset | Other (within Other Assets, Net) | $ | 36,155 | $ | (21,041 | ) | $ | 15,114 | $ | 39,748 | $ | (24,504 | ) | $ | 15,244 | |||||||||||
Capitalized commissions asset | Other (within Other Assets, Net) | 52,485 | (24,923 | ) | 27,562 | 58,424 | (34,637 | ) | 23,787 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Intake Costs asset | $ | 2,679 | $ | 2,730 | |||
Capitalized commissions asset | 3,946 | 3,587 |
Description | Location in Balance Sheet | March 31, 2019 | December 31, 2018 | |||||||
Deferred revenue - Current | Deferred revenue | $ | 266,314 | $ | 264,823 | |||||
Deferred revenue - Long-term | Other Long-term Liabilities | 25,625 | 26,401 |
Description | Location in Balance Sheet | March 31, 2019 | January 1, 2019 (Date of Adoption of ASU 2016-02) | |||||||
Assets: | ||||||||||
Operating lease right-of-use assets(1) | Operating lease right-of-use assets | $ | 1,791,536 | $ | 1,825,721 | |||||
Financing lease right-of-use assets, net of accumulated depreciation(2) | Property, plant and equipment, net | 351,750 | 361,078 | |||||||
Total | $ | 2,143,286 | $ | 2,186,799 | ||||||
Liabilities: | ||||||||||
Current | ||||||||||
Operating lease liabilities | Accrued expenses and other current liabilities | $ | 206,286 | $ | 209,911 | |||||
Financing lease liabilities | Current portion of long-term debt | 51,222 | 50,437 | |||||||
Total current lease liabilities | 257,508 | 260,348 | ||||||||
Long-term | ||||||||||
Operating lease liabilities | Long-term operating lease liabilities, net of current portion | 1,656,659 | 1,685,771 | |||||||
Financing lease liabilities | Long-term Debt, net of current portion | 338,728 | 350,263 | |||||||
Total long-term lease liabilities | 1,995,387 | 2,036,034 | ||||||||
Total | $ | 2,252,895 | $ | 2,296,382 |
Description | Location in Statement of Operations | Amount | ||||
Operating lease cost(1) | Cost of sales and Selling, general and administrative | $ | 111,906 | |||
Financing lease cost: | ||||||
Depreciation of financing lease right-of-use assets | Depreciation and amortization | $ | 16,329 | |||
Interest expense for financing lease liabilities | Interest expense, net | 6,142 | ||||
Total financing lease cost | $ | 22,471 |
Remaining Lease Term: | ||
Operating leases | 11.1 Years | |
Financing leases | 11.0 Years | |
Discount Rate: | ||
Operating leases | 7.1% | |
Financing leases | 5.7% |
Year | Operating Leases(1) | Sublease Income | Capital Leases(1)(2) | |||||||||
2019 | $ | 323,454 | $ | (7,525 | ) | $ | 80,513 | |||||
2020 | 293,276 | (7,200 | ) | 71,335 | ||||||||
2021 | 267,379 | (7,063 | ) | 61,269 | ||||||||
2022 | 246,128 | (6,694 | ) | 52,832 | ||||||||
2023 | 221,808 | (6,409 | ) | 44,722 | ||||||||
Thereafter | 1,287,807 | (6,279 | ) | 377,750 | ||||||||
Total minimum lease payments | 2,639,852 | $ | (41,170 | ) | 688,421 | |||||||
Less amounts representing interest | (241,248 | ) | ||||||||||
Present value of finance lease obligations | $ | 447,173 |
Year | Operating Leases(1) | Sublease Income | Financing Leases(1) | |||||||||
2019 (excluding the three months ended March 31, 2019) | $ | 251,699 | $ | (6,039 | ) | $ | 59,411 | |||||
2020 | 308,267 | (7,337 | ) | 68,333 | ||||||||
2021 | 280,931 | (7,228 | ) | 59,710 | ||||||||
2022 | 257,598 | (6,851 | ) | 49,997 | ||||||||
2023 | 234,035 | (6,548 | ) | 39,643 | ||||||||
Thereafter | 1,409,241 | (6,922 | ) | 287,609 | ||||||||
Total minimum lease payments | 2,741,771 | $ | (40,925 | ) | 564,703 | |||||||
Less amounts representing interest or imputed interest | (878,826 | ) | (174,753 | ) | ||||||||
Present value of lease obligations | 1,862,945 | $ | 389,950 |
(1) | Estimated minimum future lease payments exclude variable common area maintenance charges, insurance and taxes. Differences in estimated lease payments between December 31, 2018 and March 31, 2019 are primarily related to adjustments to account for certain build to suit leases that were accounted for as financing obligations under ASC 840 but are accounted for as operating leases under ASU 2016-02 and foreign currency exchange rate impacts. |
(2) | Includes capital lease and financing obligations associated with build to suit lease transactions at December 31, 2018. |
Cash paid for amounts included in measurement of lease liabilities: | Three Months Ended March 31, 2019 | |||
Operating cash flows used in operating leases | $ | 83,676 | ||
Financing cash flows used in financing leases | $ | 16,675 | ||
Non-cash items: | ||||
Operating lease modifications and reassessments | $ | 1,842 | ||
New operating leases (including acquisitions) | $ | 21,535 | ||
Financing lease modifications and reassessments | $ | — | ||
New financing leases | $ | 7,523 |
Stock Options | ||
Outstanding at December 31, 2018 | 4,271,834 | |
Granted | 920,706 | |
Exercised | (99,334 | ) |
Forfeited | (6,007 | ) |
Expired | (9,629 | ) |
Outstanding at March 31, 2019 | 5,077,570 | |
Options exercisable at March 31, 2019 | 3,258,982 | |
Options expected to vest | 1,691,146 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Fair value of RSUs vested | $ | 15,333 | $ | 15,330 |
RSUs | ||
Non-vested at December 31, 2018 | 1,196,566 | |
Granted | 621,281 | |
Vested | (453,167 | ) |
Forfeited | (18,075 | ) |
Non-vested at March 31, 2019 | 1,346,605 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Fair value of earned PUs that vested | $ | 6,503 | $ | 3,033 |
Original PU Awards | PU Adjustment(1) | Total PU Awards | ||||||
Non-vested at December 31, 2018 | 967,049 | (299,948 | ) | 667,101 | ||||
Granted | 380,856 | — | 380,856 | |||||
Vested | (169,523 | ) | — | (169,523 | ) | |||
Forfeited/Performance or Market Conditions Not Achieved | (4,816 | ) | (14,850 | ) | (19,666 | ) | ||
Non-vested at March 31, 2019 | 1,173,566 | (314,798 | ) | 858,768 |
(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. |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Income (loss) from continuing operations | $ | 30,476 | $ | 45,614 | |||
Less: Net income (loss) attributable to noncontrolling interests | 891 | 468 | |||||
Income (loss) from continuing operations (utilized in numerator of Earnings Per Share calculation) | $ | 29,585 | $ | 45,146 | |||
(Loss) income from discontinued operations, net of tax | $ | (24 | ) | $ | (462 | ) | |
Net income (loss) attributable to Iron Mountain Incorporated | $ | 29,561 | $ | 44,684 | |||
Weighted-average shares—basic | 286,528,000 | 285,259,000 | |||||
Effect of dilutive potential stock options | 231,402 | 249,564 | |||||
Effect of dilutive potential RSUs and PUs | 732,421 | 484,314 | |||||
Weighted-average shares—diluted | 287,491,823 | 285,992,878 | |||||
Earnings (losses) per share—basic: | |||||||
Income (loss) from continuing operations | $ | 0.10 | $ | 0.16 | |||
(Loss) income from discontinued operations, net of tax | — | — | |||||
Net income (loss) attributable to Iron Mountain Incorporated(1) | $ | 0.10 | $ | 0.16 | |||
Earnings (losses) per share—diluted: | |||||||
Income (loss) from continuing operations | $ | 0.10 | $ | 0.16 | |||
(Loss) income from discontinued operations, net of tax | — | — | |||||
Net income (loss) attributable to Iron Mountain Incorporated(1) | $ | 0.10 | $ | 0.16 | |||
Antidilutive stock options, RSUs and PUs, excluded from the calculation | 3,985,161 | 3,242,141 |
Three Months Ended March 31, | |||||
2019(1) | 2018(2) | ||||
Effective Tax Rate | 25.7 | % | 2.5 | % |
(1) | The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three months ended March 31, 2019 were the benefit derived from the dividends paid deduction and the impact of differences in the tax rates at which our foreign earnings are subject, including foreign exchange gains and losses in different jurisdictions with different tax rates. |
(2) | The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three months ended March 31, 2018 were the benefit derived from the dividends paid deduction, a discrete tax benefit of approximately $14,000 associated with the resolution of a tax matter and the impact of differences in the tax rates at which our foreign earnings are subject, including foreign exchange gains and losses in different jurisdictions with different tax rates. |
Fair Value Measurements at March 31, 2019 Using | ||||||||||||||||||||
Description | Total Carrying Value at March 31, 2019 | Quoted prices in active markets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||||||
Money Market Funds(1) | $ | 1,739 | $ | — | $ | 1,739 | $ | — | ||||||||||||
Trading Securities | 10,160 | 9,490 | (2) | 670 | (3) | — | ||||||||||||||
Derivative Assets (4) | 23 | — | 23 | — | ||||||||||||||||
Derivative Liabilities(4) | 109 | — | 109 | — | ||||||||||||||||
Interest Rate Swap Agreements Liabilities(5) | 3,647 | — | 3,647 | — |
Fair Value Measurements at December 31, 2018 Using | ||||||||||||||||||||
Description | Total Carrying Value at December 31, 2018 | Quoted prices in active markets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||||||
Time Deposits(1) | $ | 956 | $ | — | $ | 956 | $ | — | ||||||||||||
Trading Securities | 10,753 | 10,248 | (2) | 505 | (3) | — | ||||||||||||||
Derivative Assets(4) | 93 | — | 93 | — | ||||||||||||||||
Interest Rate Swap Agreements Liabilities(5) | 973 | — | 973 | — |
(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. 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. As of March 31, 2019, we had outstanding forward contracts to (i) purchase 4,000 Euros and sell $4,610 United States dollars and (ii) purchase $4,515 United States dollars and sell 4,000 Euros. As of December 31, 2018, we had outstanding forward contracts to purchase 29,000 Euros and sell $33,374 United States dollars. We have not designated any of the forward contracts we have entered into as hedges. |
(5) | We have entered into interest rate swap agreements to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness. As of March 31, 2019 and December 31, 2018, we have $350,000 in notional value of interest rate swap agreements outstanding, which expire in March 2022. Under the interest rate swap agreements, we receive variable rate interest payments associated with the notional amount of each interest rate swap, based upon one-month LIBOR, in exchange for the payment of fixed interest rate payments (at the fixed rate interest specified in the interest rate swap agreements). We have designated these interest rate swaps as cash flow hedges. Unrealized gains are recognized as assets while unrealized losses are recognized as liabilities. The fair value of the interest rate swaps are estimated using industry standard valuation models using market-based observable inputs, including interest rate curves. |
Three Months Ended March 31, | |||||||||||||||||||||||
2019 | 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 | $ | (264,691 | ) | $ | (973 | ) | $ | (265,664 | ) | $ | (103,989 | ) | $ | — | $ | (103,989 | ) | ||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Foreign currency translation adjustments(1) | 17,378 | — | 17,378 | 30,092 | — | 30,092 | |||||||||||||||||
Fair value adjustments for interest rate swap agreements | — | (2,674 | ) | (2,674 | ) | — | (185 | ) | (185 | ) | |||||||||||||
Total other comprehensive income (loss) | 17,378 | (2,674 | ) | 14,704 | 30,092 | (185 | ) | 29,907 | |||||||||||||||
End of Period | $ | (247,313 | ) | $ | (3,647 | ) | $ | (250,960 | ) | $ | (73,897 | ) | $ | (185 | ) | $ | (74,082 | ) |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Foreign currency transaction losses (gains), net | $ | 17,697 | $ | 21,785 | |||
Other, net | (2,487 | ) | (1,634 | ) | |||
$ | 15,210 | $ | 20,151 |
Three Months Ended March 31, 2019 | ||||
Cash Paid (gross of cash acquired)(1) | $ | 34,198 | ||
Purchase Price Holdbacks and Other | 1,042 | |||
Total Consideration | 35,240 | |||
Fair Value of Identifiable Assets Acquired: | ||||
Cash | 2,273 | |||
Accounts Receivable, Prepaid Expenses and Other Assets | 2,845 | |||
Property, Plant and Equipment(2) | 4,039 | |||
Customer Relationship Intangible Assets | 13,589 | |||
Operating Lease Right-of-Use Assets | 10,541 | |||
Accounts Payable, Accrued Expenses and Other Liabilities | (2,065 | ) | ||
Operating Lease Liabilities | (10,541 | ) | ||
Deferred Income Taxes | (1,574 | ) | ||
Total Fair Value of Identifiable Net Assets Acquired | 19,107 | |||
Goodwill Initially Recorded(3) | $ | 16,133 |
(1) | Included in cash paid for acquisitions in the Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2019 is net cash acquired of $2,273 and contingent and other payments, net of $7,498 related to acquisitions made in previous years. |
(2) | Consists primarily of leasehold improvements, racking structures and warehouse equipment. These assets are depreciated using the straight-line method with the useful lives as noted in Note 2.f. to Notes to Consolidated Financial Statements included in our Annual Report. |
Three Months Ended March 31, 2018 | |||
Total Revenues | $ | 1,045,948 | |
Income from Continuing Operations | $ | 55,566 | |
Per Share Income from Continuing Operations - Basic | $ | 0.20 | |
Per Share Income from Continuing Operations - Diluted | $ | 0.19 |
March 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||||
Debt (inclusive of discount) | Unamortized Deferred Financing Costs | Carrying Amount | Fair Value | Debt (inclusive of discount) | Unamortized Deferred Financing Costs | Carrying Amount | Fair Value | |||||||||||||||||||||||||||
Revolving Credit Facility(1) | $ | 1,139,566 | $ | (13,332 | ) | $ | 1,126,234 | $ | 1,139,566 | $ | 793,832 | $ | (14,117 | ) | $ | 779,715 | $ | 793,832 | ||||||||||||||||
Term Loan A(1) | 237,500 | — | 237,500 | 237,500 | 240,625 | — | 240,625 | 240,625 | ||||||||||||||||||||||||||
Term Loan B(2) | 691,476 | (8,430 | ) | 683,046 | 670,478 | 693,169 | (8,742 | ) | 684,427 | 660,013 | ||||||||||||||||||||||||
Australian Dollar Term Loan (the "AUD Term Loan")(3) | 234,000 | (2,893 | ) | 231,107 | 235,587 | 233,955 | (3,084 | ) | 230,871 | 235,645 | ||||||||||||||||||||||||
UK Bilateral Revolving Credit Facility ("UK Bilateral Facility")(4) | 182,450 | (2,255 | ) | 180,195 | 182,450 | 178,299 | (2,357 | ) | 175,942 | 178,299 | ||||||||||||||||||||||||
43/8% Senior Notes due 2021 (the "43/8% Notes")(5) | 500,000 | (3,725 | ) | 496,275 | 502,500 | 500,000 | (4,155 | ) | 495,845 | 488,750 | ||||||||||||||||||||||||
6% Senior Notes due 2023 (the "6% Notes due 2023")(5) | 600,000 | (4,851 | ) | 595,149 | 615,000 | 600,000 | (5,126 | ) | 594,874 | 606,000 | ||||||||||||||||||||||||
53/8% CAD Senior Notes due 2023 (the "CAD Notes") | 187,262 | (2,424 | ) | 184,838 | 189,444 | 183,403 | (2,506 | ) | 180,897 | 186,154 | ||||||||||||||||||||||||
53/4% Senior Subordinated Notes due 2024 (the "53/4% Notes")(5) | 1,000,000 | (7,439 | ) | 992,561 | 1,010,000 | 1,000,000 | (7,782 | ) | 992,218 | 940,000 | ||||||||||||||||||||||||
3% Euro Senior Notes due 2025 (the "Euro Notes")(5) | 336,557 | (3,941 | ) | 332,616 | 337,684 | 343,347 | (4,098 | ) | 339,249 | 321,029 | ||||||||||||||||||||||||
37/8% GBP Senior Notes due 2025 (the "GBP Notes") | 521,286 | (6,480 | ) | 514,806 | 495,852 | 509,425 | (6,573 | ) | 502,852 | 453,811 | ||||||||||||||||||||||||
53/8% Senior Notes due 2026 (the "53/8% Notes") | 250,000 | (3,078 | ) | 246,922 | 246,875 | 250,000 | (3,185 | ) | 246,815 | 224,375 | ||||||||||||||||||||||||
47/8% Senior Notes due 2027 (the "47/8% Notes")(5) | 1,000,000 | (12,086 | ) | 987,914 | 957,500 | 1,000,000 | (12,442 | ) | 987,558 | 855,000 | ||||||||||||||||||||||||
51/4% Senior Notes due 2028 (the "51/4% Notes")(5) | 825,000 | (10,628 | ) | 814,372 | 798,188 | 825,000 | (10,923 | ) | 814,077 | 713,625 | ||||||||||||||||||||||||
Real Estate Mortgages, Financing Lease Liabilities and Other | 566,677 | (431 | ) | 566,246 | 566,677 | 606,702 | (171 | ) | 606,531 | 606,702 | ||||||||||||||||||||||||
Accounts Receivable Securitization Program(6) | 252,373 | (184 | ) | 252,189 | 252,373 | 221,673 | (218 | ) | 221,455 | 221,673 | ||||||||||||||||||||||||
Mortgage Securitization Program(7) | 50,000 | (1,091 | ) | 48,909 | 50,000 | 50,000 | (1,128 | ) | 48,872 | 50,000 | ||||||||||||||||||||||||
Total Long-term Debt | 8,574,147 | (83,268 | ) | 8,490,879 | 8,229,430 | — | (86,607 | ) | 8,142,823 | |||||||||||||||||||||||||
Less Current Portion | (125,142 | ) | — | (125,142 | ) | (126,406 | ) | — | (126,406 | ) | ||||||||||||||||||||||||
Long-term Debt, Net of Current Portion | $ | 8,449,005 | $ | (83,268 | ) | $ | 8,365,737 | $ | 8,103,024 | $ | (86,607 | ) | $ | 8,016,417 |
(1) | Collectively, the credit agreement ("Credit Agreement"). The Credit Agreement consists of a revolving credit facility (the "Revolving Credit Facility") and a term loan (the "Term Loan A"). The Credit Agreement is scheduled to mature on June 3, 2023. Of the $1,139,566 of outstanding borrowings under the Revolving Credit Facility as of March 31, 2019, 965,800 was denominated in United States dollars, 94,200 was denominated in Canadian dollars and 92,000 was denominated in Euros. In addition, we also had various outstanding letters of credit totaling $37,271. The remaining amount available for borrowing under the Revolving Credit Facility as of March 31, 2019 was $573,163 (which amount represents the maximum availability as of such date). The average interest rate in effect under the Credit Agreement was 4.0% as of March 31, 2019. The average interest rate in effect under the Revolving Credit Facility as of March 31, 2019 was 4.0% and the interest rate in effect under Term Loan A as of March 31, 2019 was 4.2%. |
(2) | In connection with the 2018 First Amendment (as defined in Note 5 to Notes to Consolidated Financial Statements included in our Annual Report), Iron Mountain Information Management, LLC ("IMIM") entered into an incremental term loan activation notice (the "Activation Notice") with certain lenders pursuant to which the lenders party to the Activation Notice agreed to provide commitments to fund an incremental term loan B in the amount of $700,000 (the "Term Loan B"). On March 26, 2018, IMIM borrowed the full amount of the Term Loan B. The Term Loan B is scheduled to mature on January 2, 2026. The interest rate in effect as of March 31, 2019 was 4.3%. The amount of debt for the Term Loan B reflects an unamortized original issue discount of $1,524 and $1,581 as of March 31, 2019 and December 31, 2018, respectively. |
(3) | The interest rate in effect as of March 31, 2019 was 5.7%. We had 331,875 Australian dollars outstanding on the AUD Term Loan as of March 31, 2019. The amount of debt for the AUD Term Loan reflects an unamortized original issue discount of $1,587 and $1,690 as of March 31, 2019 and December 31, 2018, respectively. |
(4) | The interest rate in effect as of March 31, 2019 was 3.2%. |
(5) | Collectively, the "Parent Notes". |
(6) | The interest rate in effect as of March 31, 2019 was 3.5%. |
(7) | The interest rate in effect as of March 31, 2019 was 3.5%. |
March 31, 2019 | December 31, 2018 | ||||||||||||||||||||||
Gross Cash Position | Outstanding Debit Balances | Net Cash Position | Gross Cash Position | Outstanding Debit Balances | Net Cash Position | ||||||||||||||||||
QRS Cash Pool | $ | 271,400 | $ | (269,400 | ) | $ | 2,000 | $ | 300,800 | $ | (298,800 | ) | $ | 2,000 | |||||||||
TRS Cash Pool | 281,100 | (277,900 | ) | 3,200 | $ | 281,500 | (279,300 | ) | 2,200 |
March 31, 2019 | December 31, 2018 | Maximum/Minimum Allowable | |||||
Net total lease adjusted leverage ratio | 5.8 | 5.6 | Maximum allowable of 6.5 | ||||
Net secured debt lease adjusted leverage ratio | 2.8 | 2.6 | Maximum allowable of 4.0 | ||||
Bond leverage ratio (not lease adjusted) | 6.1 | 5.8 | Maximum allowable of 6.5-7.0(1) | ||||
Fixed charge coverage ratio | 2.2 | 2.2 | Minimum allowable of 1.5 |
(1) | The maximum allowable leverage ratio under our indentures for the 47/8% Notes, the GBP Notes and the 51/4% Notes is 7.0, while the maximum allowable leverage ratio under the indentures pertaining to our remaining senior and senior subordinated notes is 6.5. In certain instances as provided in our indentures, we have the ability to incur additional indebtedness that would result in our bond leverage ratio exceeding the maximum allowable ratio under our indentures and still remain in compliance with the covenant. |
March 31, 2019 | |||||||||||||||||||
Parent | Guarantors | Non- Guarantors | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current Assets: | |||||||||||||||||||
Cash and cash equivalents(1) | $ | 11 | $ | 122,114 | $ | 109,991 | $ | (70,641 | ) | $ | 161,475 | ||||||||
Accounts receivable | — | 37,598 | 799,923 | — | 837,521 | ||||||||||||||
Intercompany receivable | — | 1,032,582 | — | (1,032,582 | ) | — | |||||||||||||
Prepaid expenses and other | — | 110,223 | 100,660 | (29 | ) | 210,854 | |||||||||||||
Total Current Assets | 11 | 1,302,517 | 1,010,574 | (1,103,252 | ) | 1,209,850 | |||||||||||||
Property, Plant and Equipment, Net | 168 | 2,999,744 | 1,525,671 | — | 4,525,583 | ||||||||||||||
Other Assets, Net: | |||||||||||||||||||
Long-term notes receivable from affiliates and intercompany receivable | 5,009,984 | — | — | (5,009,984 | ) | — | |||||||||||||
Investment in subsidiaries | 1,926,435 | 1,017,247 | — | (2,943,682 | ) | — | |||||||||||||
Goodwill | — | 2,857,855 | 1,607,523 | — | 4,465,378 | ||||||||||||||
Operating lease right-of-use assets | — | 895,920 | 895,616 | — | 1,791,536 | ||||||||||||||
Other | 5 | 976,403 | 720,608 | — | 1,697,016 | ||||||||||||||
Total Other Assets, Net | 6,936,424 | 5,747,425 | 3,223,747 | (7,953,666 | ) | 7,953,930 | |||||||||||||
Total Assets | $ | 6,936,603 | $ | 10,049,686 | $ | 5,759,992 | $ | (9,056,918 | ) | $ | 13,689,363 | ||||||||
Liabilities and Equity | |||||||||||||||||||
Intercompany Payable | $ | 729,843 | $ | — | $ | 302,739 | $ | (1,032,582 | ) | $ | — | ||||||||
Debit Balances Under Cash Pools | — | — | 70,641 | (70,641 | ) | — | |||||||||||||
Current Portion of Long-Term Debt | — | 55,940 | 69,231 | (29 | ) | 125,142 | |||||||||||||
Total Other Current Liabilities (includes current portion of operating lease liabilities) | 224,825 | 632,699 | 532,467 | — | 1,389,991 | ||||||||||||||
Long-Term Debt, Net of Current Portion | 4,218,887 | 2,212,686 | 1,934,164 | — | 8,365,737 | ||||||||||||||
Long-Term Operating Lease Liabilities, Net of Current Portion | — | 832,007 | 824,652 | — | 1,656,659 | ||||||||||||||
Long-Term Notes Payable to Affiliates and Intercompany Payable | — | 5,009,984 | — | (5,009,984 | ) | — | |||||||||||||
Other Long-term Liabilities | 3,647 | 51,575 | 262,776 | — | 317,998 | ||||||||||||||
Commitments and Contingencies (See Note 7) | |||||||||||||||||||
Redeemable Noncontrolling Interests | — | — | 73,102 | — | 73,102 | ||||||||||||||
Total Iron Mountain Incorporated Stockholders' Equity | 1,759,401 | 1,254,795 | 1,688,887 | (2,943,682 | ) | 1,759,401 | |||||||||||||
Noncontrolling Interests | — | — | 1,333 | — | 1,333 | ||||||||||||||
Total Equity | 1,759,401 | 1,254,795 | 1,690,220 | (2,943,682 | ) | 1,760,734 | |||||||||||||
Total Liabilities and Equity | $ | 6,936,603 | $ | 10,049,686 | $ | 5,759,992 | $ | (9,056,918 | ) | $ | 13,689,363 |
(1) | Included within Cash and Cash Equivalents at March 31, 2019 is approximately $76,000 and $0 of cash on deposit associated with our Cash Pools for the Guarantors and Non-Guarantors, respectively. |
December 31, 2018 | |||||||||||||||||||
Parent | Guarantors | Non- Guarantors | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current Assets: | |||||||||||||||||||
Cash and cash equivalents(1) | $ | 132 | $ | 61,650 | $ | 169,318 | $ | (65,615 | ) | $ | 165,485 | ||||||||
Accounts receivable | — | 47,900 | 798,989 | — | 846,889 | ||||||||||||||
Intercompany receivable | — | 818,463 | — | (818,463 | ) | — | |||||||||||||
Prepaid expenses and other | 93 | 108,879 | 86,797 | (29 | ) | 195,740 | |||||||||||||
Total Current Assets | 225 | 1,036,892 | 1,055,104 | (884,107 | ) | 1,208,114 | |||||||||||||
Property, Plant and Equipment, Net | 190 | 3,002,104 | 1,487,263 | — | 4,489,557 | ||||||||||||||
Other Assets, Net: | |||||||||||||||||||
Long-term notes receivable from affiliates and intercompany receivable | 4,954,686 | — | — | (4,954,686 | ) | — | |||||||||||||
Investment in subsidiaries | 1,885,174 | 1,006,144 | — | (2,891,318 | ) | — | |||||||||||||
Goodwill | — | 2,858,539 | 1,582,491 | — | 4,441,030 | ||||||||||||||
Other | — | 979,483 | 734,063 | — | 1,713,546 | ||||||||||||||
Total Other Assets, Net | 6,839,860 | 4,844,166 | 2,316,554 | (7,846,004 | ) | 6,154,576 | |||||||||||||
Total Assets | $ | 6,840,275 | $ | 8,883,162 | $ | 4,858,921 | $ | (8,730,111 | ) | $ | 11,852,247 | ||||||||
Liabilities and Equity | |||||||||||||||||||
Intercompany Payable | $ | 462,927 | $ | — | $ | 355,536 | $ | (818,463 | ) | $ | — | ||||||||
Debit Balances Under Cash Pools | — | 10,612 | 55,003 | (65,615 | ) | — | |||||||||||||
Current Portion of Long-Term Debt | — | 63,703 | 62,732 | (29 | ) | 126,406 | |||||||||||||
Total Other Current Liabilities | 268,373 | 616,826 | 451,073 | — | 1,336,272 | ||||||||||||||
Long-Term Debt, Net of Current Portion | 4,223,822 | 1,877,649 | 1,914,946 | — | 8,016,417 | ||||||||||||||
Long-Term Notes Payable to Affiliates and Intercompany Payable | — | 4,954,686 | — | (4,954,686 | ) | — | |||||||||||||
Other Long-term Liabilities | 973 | 115,994 | 300,064 | — | 417,031 | ||||||||||||||
Commitments and Contingencies (See Note 7) | |||||||||||||||||||
Redeemable Noncontrolling Interests | — | — | 70,532 | — | 70,532 | ||||||||||||||
Total Iron Mountain Incorporated Stockholders' Equity | 1,884,180 | 1,243,692 | 1,647,626 | (2,891,318 | ) | 1,884,180 | |||||||||||||
Noncontrolling Interests | — | — | 1,409 | — | 1,409 | ||||||||||||||
Total Equity | 1,884,180 | 1,243,692 | 1,649,035 | (2,891,318 | ) | 1,885,589 | |||||||||||||
Total Liabilities and Equity | $ | 6,840,275 | $ | 8,883,162 | $ | 4,858,921 | $ | (8,730,111 | ) | $ | 11,852,247 |
(1) | Included within Cash and Cash Equivalents at December 31, 2018 is approximately $57,200 and $12,700 of cash on deposit associated with our Cash Pools for the Guarantors and Non-Guarantors, respectively. |
Three Months Ended March 31, 2019 | |||||||||||||||||||
Parent | Guarantors | Non- Guarantors | Eliminations | Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Storage rental | $ | — | $ | 403,741 | $ | 259,233 | $ | — | $ | 662,974 | |||||||||
Service | — | 239,693 | 151,196 | — | 390,889 | ||||||||||||||
Intercompany revenues | — | 1,154 | 4,923 | (6,077 | ) | — | |||||||||||||
Total Revenues | — | 644,588 | 415,352 | (6,077 | ) | 1,053,863 | |||||||||||||
Operating Expenses: | |||||||||||||||||||
Cost of sales (excluding depreciation and amortization) | — | 263,137 | 198,407 | — | 461,544 | ||||||||||||||
Intercompany | — | 4,923 | 1,154 | (6,077 | ) | — | |||||||||||||
Selling, general and administrative | 87 | 187,822 | 82,650 | — | 270,559 | ||||||||||||||
Depreciation and amortization | 23 | 102,954 | 59,506 | — | 162,483 | ||||||||||||||
(Gain) Loss on disposal/write-down of property, plant and equipment, net | — | 574 | 28 | — | 602 | ||||||||||||||
Total Operating Expenses | 110 | 559,410 | 341,745 | (6,077 | ) | 895,188 | |||||||||||||
Operating (Loss) Income | (110 | ) | 85,178 | 73,607 | — | 158,675 | |||||||||||||
Interest Expense (Income), Net(1) | 49,625 | 4,057 | 48,754 | — | 102,436 | ||||||||||||||
Other Expense (Income), Net | 182 | 527 | 14,501 | — | 15,210 | ||||||||||||||
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes | (49,917 | ) | 80,594 | 10,352 | — | 41,029 | |||||||||||||
Provision (Benefit) for Income Taxes | — | 1,301 | 9,252 | — | 10,553 | ||||||||||||||
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax | (79,478 | ) | 4,158 | — | 75,320 | — | |||||||||||||
Income (Loss) from Continuing Operations | 29,561 | 75,135 | 1,100 | (75,320 | ) | 30,476 | |||||||||||||
(Loss) Income from Discontinued Operations, Net of Tax | — | (24 | ) | — | — | (24 | ) | ||||||||||||
Net Income (Loss) | 29,561 | 75,111 | 1,100 | (75,320 | ) | 30,452 | |||||||||||||
Less: Net Income (Loss) Attributable to Noncontrolling Interests | — | — | 891 | — | 891 | ||||||||||||||
Net Income (Loss) Attributable to Iron Mountain Incorporated | $ | 29,561 | $ | 75,111 | $ | 209 | $ | (75,320 | ) | $ | 29,561 | ||||||||
Net Income (Loss) | $ | 29,561 | $ | 75,111 | $ | 1,100 | $ | (75,320 | ) | $ | 30,452 | ||||||||
Other Comprehensive Income (Loss): | |||||||||||||||||||
Foreign Currency Translation Adjustments | 6,141 | — | 12,050 | — | 18,191 | ||||||||||||||
Change in fair value of interest rate swap agreements | (2,674 | ) | — | — | — | (2,674 | ) | ||||||||||||
Equity in Other Comprehensive (Loss) Income of Subsidiaries | 11,237 | 7,156 | — | (18,393 | ) | — | |||||||||||||
Total Other Comprehensive Income (Loss) | 14,704 | 7,156 | 12,050 | (18,393 | ) | 15,517 | |||||||||||||
Comprehensive Income (Loss) | 44,265 | 82,267 | 13,150 | (93,713 | ) | 45,969 | |||||||||||||
Comprehensive (Loss) Income Attributable to Noncontrolling Interests | — | — | 1,704 | — | 1,704 | ||||||||||||||
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated | $ | 44,265 | $ | 82,267 | $ | 11,446 | $ | (93,713 | ) | $ | 44,265 |
(1) | Included within Interest Expense (Income), Net are intercompany management fees and royalty fees, which are eliminated in our consolidated financial statements. |
Three Months Ended March 31, 2018 | |||||||||||||||||||
Parent | Guarantors | Non- Guarantors | Eliminations | Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Storage rental | $ | — | $ | 396,476 | $ | 254,673 | $ | — | $ | 651,149 | |||||||||
Service | — | 230,230 | 161,079 | — | 391,309 | ||||||||||||||
Intercompany revenues | — | 1,205 | 4,491 | (5,696 | ) | — | |||||||||||||
Total Revenues | — | 627,911 | 420,243 | (5,696 | ) | 1,042,458 | |||||||||||||
Operating Expenses: | |||||||||||||||||||
Cost of sales (excluding depreciation and amortization) | — | 246,163 | 202,558 | — | 448,721 | ||||||||||||||
Intercompany cost of sales | — | 4,491 | 1,205 | (5,696 | ) | — | |||||||||||||
Selling, general and administrative | 43 | 185,348 | 84,339 | — | 269,730 | ||||||||||||||
Depreciation and amortization | 33 | 102,446 | 58,099 | — | 160,578 | ||||||||||||||
(Gain) Loss on disposal/write-down of property, plant and equipment, net | — | (356 | ) | (774 | ) | — | (1,130 | ) | |||||||||||
Total Operating Expenses | 76 | 538,092 | 345,427 | (5,696 | ) | 877,899 | |||||||||||||
Operating (Loss) Income | (76 | ) | 89,819 | 74,816 | — | 164,559 | |||||||||||||
Interest Expense (Income), Net(1) | 49,941 | (1,508 | ) | 49,193 | — | 97,626 | |||||||||||||
Other (Income) Expense, Net | (1,157 | ) | 1,560 | 19,748 | — | 20,151 | |||||||||||||
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes | (48,860 | ) | 89,767 | 5,875 | — | 46,782 | |||||||||||||
(Benefit) Provision for Income Taxes | — | (6,712 | ) | 7,880 | — | 1,168 | |||||||||||||
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax | (93,544 | ) | 2,865 | — | 90,679 | — | |||||||||||||
Income (Loss) from Continuing Operations | 44,684 | 93,614 | (2,005 | ) | (90,679 | ) | 45,614 | ||||||||||||
(Loss) Income from Discontinued Operations | — | (422 | ) | (40 | ) | — | (462 | ) | |||||||||||
Net Income (Loss) | 44,684 | 93,192 | (2,045 | ) | (90,679 | ) | 45,152 | ||||||||||||
Less: Net Income (Loss) Attributable to Noncontrolling Interests | — | — | 468 | — | 468 | ||||||||||||||
Net Income (Loss) Attributable to Iron Mountain Incorporated | $ | 44,684 | $ | 93,192 | $ | (2,513 | ) | $ | (90,679 | ) | $ | 44,684 | |||||||
Net Income (Loss) | $ | 44,684 | $ | 93,192 | $ | (2,045 | ) | $ | (90,679 | ) | $ | 45,152 | |||||||
Other Comprehensive Income (Loss): | |||||||||||||||||||
Foreign Currency Translation Adjustments | (5,635 | ) | — | 37,286 | — | 31,651 | |||||||||||||
Change in fair value of interest rate swap agreements | (185 | ) | — | — | — | (185 | ) | ||||||||||||
Equity in Other Comprehensive Income (Loss) of Subsidiaries | 35,732 | 38,336 | — | (74,068 | ) | — | |||||||||||||
Total Other Comprehensive Income (Loss) | 29,912 | 38,336 | 37,286 | (74,068 | ) | 31,466 | |||||||||||||
Comprehensive Income (Loss) | 74,596 | 131,528 | 35,241 | (164,747 | ) | 76,618 | |||||||||||||
Comprehensive Income (Loss) Attributable to Noncontrolling Interests | — | — | 2,027 | — | 2,027 | ||||||||||||||
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated | $ | 74,596 | $ | 131,528 | $ | 33,214 | $ | (164,747 | ) | $ | 74,591 |
(1) | Included within Interest Expense (Income), Net are intercompany management fees and royalty fees, which are eliminated in our consolidated financial statements. |
Three Months Ended March 31, 2019 | |||||||||||||||||||
Parent | Guarantors | Non- Guarantors | Eliminations | Consolidated | |||||||||||||||
Cash Flows from Operating Activities: | |||||||||||||||||||
Cash Flows from Operating Activities—Continuing Operations | $ | (68,310 | ) | $ | 116,235 | $ | 69,142 | $ | — | $ | 117,067 | ||||||||
Cash Flows from Operating Activities—Discontinued Operations | — | — | — | — | — | ||||||||||||||
Cash Flows from Operating Activities | (68,310 | ) | 116,235 | $ | 69,142 | $ | — | $ | 117,067 | ||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||
Capital expenditures | — | (84,766 | ) | (99,999 | ) | — | (184,765 | ) | |||||||||||
Cash paid for acquisitions, net of cash acquired | — | (9,508 | ) | (29,915 | ) | — | (39,423 | ) | |||||||||||
Intercompany loans to subsidiaries | 252,175 | 22,859 | — | (275,034 | ) | — | |||||||||||||
Acquisitions of customer relationships, customer inducements and data center lease-based intangibles | — | (49,301 | ) | (18,611 | ) | — | (67,912 | ) | |||||||||||
Investments in joint ventures (see Note 9) | — | (19,222 | ) | — | — | (19,222 | ) | ||||||||||||
Proceeds from sales of property and equipment and other, net | — | 36 | 69 | — | 105 | ||||||||||||||
Cash Flows from Investing Activities—Continuing Operations | 252,175 | (139,902 | ) | (148,456 | ) | (275,034 | ) | (311,217 | ) | ||||||||||
Cash Flows from Investing Activities—Discontinued Operations | — | — | — | — | — | ||||||||||||||
Cash Flows from Investing Activities | 252,175 | (139,902 | ) | (148,456 | ) | (275,034 | ) | (311,217 | ) | ||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||
Repayment of revolving credit facility, term loan facilities and other debt | — | (410,563 | ) | (940,679 | ) | — | (1,351,242 | ) | |||||||||||
Proceeds from revolving credit facility, term loan facilities and other debt | — | 734,243 | 989,219 | — | 1,723,462 | ||||||||||||||
Debit (payments) balances under cash pools | — | (10,612 | ) | 15,638 | (5,026 | ) | — | ||||||||||||
Debt (repayment to) financing from and equity (distribution to) contribution from noncontrolling interests, net | — | — | (498 | ) | — | (498 | ) | ||||||||||||
Intercompany loans from parent | — | (228,937 | ) | (46,097 | ) | 275,034 | — | ||||||||||||
Parent cash dividends | (178,023 | ) | — | — | — | (178,023 | ) | ||||||||||||
Net (payments) proceeds associated with employee stock-based awards | (5,963 | ) | — | — | — | (5,963 | ) | ||||||||||||
Cash Flows from Financing Activities—Continuing Operations | (183,986 | ) | 84,131 | 17,583 | 270,008 | 187,736 | |||||||||||||
Cash Flows from Financing Activities—Discontinued Operations | — | — | — | — | — | ||||||||||||||
Cash Flows from Financing Activities | (183,986 | ) | 84,131 | 17,583 | 270,008 | 187,736 | |||||||||||||
Effect of exchange rates on cash and cash equivalents | — | — | 2,404 | — | 2,404 | ||||||||||||||
(Decrease) Increase in cash and cash equivalents | (121 | ) | 60,464 | (59,327 | ) | (5,026 | ) | (4,010 | ) | ||||||||||
Cash and cash equivalents, including Restricted Cash, beginning of period | 132 | 61,650 | 169,318 | (65,615 | ) | 165,485 | |||||||||||||
Cash and cash equivalents, including Restricted Cash, end of period | $ | 11 | $ | 122,114 | $ | 109,991 | $ | (70,641 | ) | $ | 161,475 |
Three Months Ended March 31, 2018 | |||||||||||||||||||
Parent | Guarantors | Non- Guarantors | Eliminations | Consolidated | |||||||||||||||
Cash Flows from Operating Activities: | |||||||||||||||||||
Cash Flows from Operating Activities—Continuing Operations | $ | (66,516 | ) | $ | 96,674 | $ | 61,410 | $ | — | $ | 91,568 | ||||||||
Cash Flows from Operating Activities—Discontinued Operations | — | — | — | — | — | ||||||||||||||
Cash Flows from Operating Activities | (66,516 | ) | 96,674 | 61,410 | — | 91,568 | |||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||
Capital expenditures | — | (62,148 | ) | (33,457 | ) | — | (95,605 | ) | |||||||||||
Cash paid for acquisitions, net of cash acquired | — | (1,315,549 | ) | (113,425 | ) | — | (1,428,974 | ) | |||||||||||
Intercompany loans to subsidiaries | 157,737 | 208,443 | — | (366,180 | ) | — | |||||||||||||
Acquisitions of customer relationships, customer inducements and data center lease-based intangibles | — | (11,874 | ) | (6,172 | ) | — | (18,046 | ) | |||||||||||
Proceeds from sales of property and equipment and other, net | — | (19,466 | ) | 79 | — | (19,387 | ) | ||||||||||||
Cash Flows from Investing Activities—Continuing Operations | 157,737 | (1,200,594 | ) | (152,975 | ) | (366,180 | ) | (1,562,012 | ) | ||||||||||
Cash Flows from Investing Activities—Discontinued Operations | — | — | — | — | — | ||||||||||||||
Cash Flows from Investing Activities | 157,737 | (1,200,594 | ) | (152,975 | ) | (366,180 | ) | (1,562,012 | ) | ||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||
Repayment of revolving credit facility, term loan facilities and other debt | — | (2,308,119 | ) | (2,102,537 | ) | — | (4,410,656 | ) | |||||||||||
Proceeds from revolving credit facility, term loan facilities and other debt | — | 3,067,988 | 2,428,503 | — | 5,496,491 | ||||||||||||||
Debit (payments) balances under cash pools | — | (51,946 | ) | (11,733 | ) | 63,679 | — | ||||||||||||
Debt (repayment to) financing from and equity (distribution to) contribution from noncontrolling interests, net | — | — | (561 | ) | — | (561 | ) | ||||||||||||
Intercompany loans from parent | — | (154,184 | ) | (211,996 | ) | 366,180 | — | ||||||||||||
Parent cash dividends | (169,006 | ) | — | — | — | (169,006 | ) | ||||||||||||
Net (payments) proceeds associated with employee stock-based awards | (5,950 | ) | — | — | — | (5,950 | ) | ||||||||||||
Net proceeds associated with the Over-Allotment Option exercise | 76,192 | — | — | — | 76,192 | ||||||||||||||
Net proceeds associated with the At the Market (ATM) Program | 8,716 | — | — | — | 8,716 | ||||||||||||||
Payment of debt financing and stock issuance costs | (412 | ) | (9,075 | ) | (487 | ) | — | (9,974 | ) | ||||||||||
Cash Flows from Financing Activities—Continuing Operations | (90,460 | ) | 544,664 | 101,189 | 429,859 | 985,252 | |||||||||||||
Cash Flows from Financing Activities—Discontinued Operations | — | — | — | — | — | ||||||||||||||
Cash Flows from Financing Activities | (90,460 | ) | 544,664 | 101,189 | 429,859 | 985,252 | |||||||||||||
Effect of exchange rates on cash and cash equivalents | — | — | 1,984 | — | 1,984 | ||||||||||||||
Increase (Decrease) in cash and cash equivalents | 761 | (559,256 | ) | 11,608 | 63,679 | (483,208 | ) | ||||||||||||
Cash and cash equivalents, including Restricted Cash, beginning of period | 2,433 | 634,317 | 383,675 | (94,726 | ) | 925,699 | |||||||||||||
Cash and cash equivalents, including Restricted Cash, end of period | $ | 3,194 | $ | 75,061 | $ | 395,283 | $ | (31,047 | ) | $ | 442,491 |
• | 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 |
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 | ||||||||||||||||||||||
As of and for the Three Months Ended March 31, 2019 | ||||||||||||||||||||||||||||
Total Revenues | $ | 527,380 | $ | 96,747 | $ | 128,753 | $ | 200,956 | $ | 61,536 | $ | 38,491 | $ | 1,053,863 | ||||||||||||||
Storage Rental | 306,986 | 66,572 | 80,695 | 129,473 | 59,718 | 19,530 | 662,974 | |||||||||||||||||||||
Service | 220,394 | 30,175 | 48,058 | 71,483 | 1,818 | 18,961 | 390,889 | |||||||||||||||||||||
Depreciation and Amortization | 60,002 | 10,202 | 15,257 | 30,599 | 31,632 | 14,791 | 162,483 | |||||||||||||||||||||
Depreciation | 45,752 | 8,013 | 10,947 | 18,218 | 19,013 | 12,668 | 114,611 | |||||||||||||||||||||
Amortization | 14,250 | 2,189 | 4,310 | 12,381 | 12,619 | 2,123 | 47,872 | |||||||||||||||||||||
Adjusted EBITDA | 223,683 | 50,552 | 39,209 | 58,124 | 26,011 | (73,073 | ) | 324,506 | ||||||||||||||||||||
Total Assets(1) | 5,823,817 | 902,514 | 1,414,878 | 2,686,938 | 2,310,001 | 551,215 | 13,689,363 | |||||||||||||||||||||
Expenditures for Segment Assets | 56,265 | 5,632 | 30,101 | 31,254 | 153,705 | 15,143 | 292,100 | |||||||||||||||||||||
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations) | 28,688 | 5,632 | 2,116 | 15,149 | 121,557 | 11,623 | 184,765 | |||||||||||||||||||||
Cash Paid (Received) for Acquisitions, Net of Cash Acquired | 9,876 | — | 11,484 | 14,543 | — | 3,520 | 39,423 | |||||||||||||||||||||
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs and third-party commissions. | 17,701 | — | 16,501 | 1,562 | 32,148 | — | 67,912 | |||||||||||||||||||||
As of and for the Three Months Ended March 31, 2018 | ||||||||||||||||||||||||||||
Total Revenues | $ | 526,843 | $ | 99,964 | $ | 134,075 | $ | 210,767 | $ | 46,603 | $ | 24,206 | $ | 1,042,458 | ||||||||||||||
Storage Rental | 304,819 | 69,246 | 83,952 | 131,747 | 45,495 | 15,890 | 651,149 | |||||||||||||||||||||
Service | 222,024 | 30,718 | 50,123 | 79,020 | 1,108 | 8,316 | 391,309 | |||||||||||||||||||||
Depreciation and Amortization | 62,752 | 10,104 | 17,556 | 31,873 | 22,268 | 16,025 | 160,578 | |||||||||||||||||||||
Depreciation | 49,138 | 8,023 | 12,758 | 19,064 | 11,380 | 13,069 | 113,432 | |||||||||||||||||||||
Amortization | 13,614 | 2,081 | 4,798 | 12,809 | 10,888 | 2,956 | 47,146 | |||||||||||||||||||||
Adjusted EBITDA | 225,738 | 53,852 | 43,966 | 60,747 | 20,790 | (62,078 | ) | 343,015 | ||||||||||||||||||||
Total Assets(1) | 5,030,238 | 833,690 | 917,155 | 2,441,685 | 1,875,766 | 899,615 | 11,998,149 | |||||||||||||||||||||
Expenditures for Segment Assets | 43,181 | 6,853 | 7,480 | 32,160 | 1,438,012 | 14,939 | 1,542,625 | |||||||||||||||||||||
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations) | 29,870 | 6,853 | 6,047 | 25,142 | 13,111 | 14,582 | 95,605 | |||||||||||||||||||||
Cash Paid (Received) for Acquisitions, Net of Cash Acquired | 1,551 | — | — | 3,208 | 1,424,215 | — | 1,428,974 | |||||||||||||||||||||
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs | 11,760 | — | 1,433 | 3,810 | 686 | 357 | 18,046 |
(1) | Excludes all intercompany receivables or payables and investment in subsidiary balances. Total assets as of March 31, 2019 reflects the adoption of ASU 2016-02. |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Adjusted EBITDA | $ | 324,506 | $ | 343,015 | |||
(Add)/Deduct: | |||||||
Provision (Benefit) for Income Taxes | 10,553 | 1,168 | |||||
Other Expense (Income), Net | 15,210 | 20,151 | |||||
Interest Expense, Net | 102,436 | 97,626 | |||||
Loss (gain) on disposal/write-down of property, plant and equipment, net | 602 | (1,130 | ) | ||||
Depreciation and Amortization | 162,483 | 160,578 | |||||
Significant Acquisition Costs(1) | 2,746 | 19,008 | |||||
Income (Loss) from Continuing Operations | $ | 30,476 | $ | 45,614 |
(1) | As defined in Note 9 to Notes to Consolidated Financial Statements included in our Annual Report. |
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 | ||||||||||||||||||||||
For the Three Months Ended March 31, 2019 | ||||||||||||||||||||||||||||
Records Management(1) | $ | 427,367 | $ | — | $ | 108,707 | $ | 172,977 | $ | — | $ | 24,345 | $ | 733,396 | ||||||||||||||
Data Management(1) | — | 93,989 | 19,886 | 19,227 | — | 14,146 | 147,248 | |||||||||||||||||||||
Information Destruction(1)(2) | 100,013 | 2,758 | 160 | 8,752 | — | — | 111,683 | |||||||||||||||||||||
Data Center | — | — | — | — | 61,536 | — | 61,536 | |||||||||||||||||||||
Total Revenues | $ | 527,380 | $ | 96,747 | $ | 128,753 | $ | 200,956 | $ | 61,536 | $ | 38,491 | $ | 1,053,863 | ||||||||||||||
For the Three Months Ended March 31, 2018 | ||||||||||||||||||||||||||||
Records Management(1) | $ | 435,002 | $ | — | $ | 113,759 | $ | 181,330 | $ | — | $ | 10,404 | $ | 740,495 | ||||||||||||||
Data Management(1) | — | 97,594 | 20,219 | 20,478 | — | 13,802 | 152,093 | |||||||||||||||||||||
Information Destruction(1)(2) | 91,841 | 2,370 | 97 | 8,959 | — | — | 103,267 | |||||||||||||||||||||
Data Center | — | — | — | — | 46,603 | — | 46,603 | |||||||||||||||||||||
Total Revenues | $ | 526,843 | $ | 99,964 | $ | 134,075 | $ | 210,767 | $ | 46,603 | $ | 24,206 | $ | 1,042,458 |
(1) | Each of the offerings within our product and service lines has a component of revenue that is storage rental related and a component that is service revenues, except for information destruction, which does not have a storage rental component. |
(2) | Includes secure shredding services. |
Declaration Date | Dividend Per Share | Record Date | Total Amount | Payment Date | ||||||||
February 14, 2018 | $ | 0.5875 | March 15, 2018 | $ | 167,969 | April 2, 2018 | ||||||
May 24, 2018 | 0.5875 | June 15, 2018 | 168,078 | July 2, 2018 | ||||||||
July 24, 2018 | 0.5875 | September 17, 2018 | 168,148 | October 2, 2018 | ||||||||
October 25, 2018 | 0.6110 | December 17, 2018 | 174,935 | January 3, 2019 | ||||||||
February 7, 2019 | 0.6110 | March 15, 2019 | 175,242 | April 2, 2019 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Cost of sales (excluding depreciation and amortization) | $ | 898 | $ | 296 | |||
Selling, general and administrative expenses | 1,848 | 18,712 | |||||
Total Significant Acquisition Costs | $ | 2,746 | $ | 19,008 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
North American Records and Information Management Business | $ | 378 | $ | 584 | |||
North American Data Management Business | — | — | |||||
Western European Business | — | 2,152 | |||||
Other International Business | 502 | 537 | |||||
Global Data Center Business | 143 | 10,181 | |||||
Corporate and Other Business | 1,723 | 5,554 | |||||
Total Significant Acquisition Costs | $ | 2,746 | $ | 19,008 |
• | our ability to remain qualified for taxation as a real estate investment trust for United States federal income tax purposes ("REIT"); |
• | the adoption of alternative technologies and shifts by our customers to storage of data through non-paper based technologies; |
• | changes in customer preferences and demand for our storage and information management services; |
• | the cost to comply with current and future laws, regulations and customer demands relating to data security and privacy issues, as well as fire and safety standards; |
• | the impact of litigation or disputes that may arise in connection with incidents in which we fail to protect our customers' information or our internal records or information technology ("IT") systems and the impact of such incidents on our reputation and ability to compete; |
• | changes in the price for our storage and information management services relative to the cost of providing such storage and information management services; |
• | changes in the political and economic environments in the countries in which our international subsidiaries operate and changes in the global political climate; |
• | our ability or inability to manage growth, expand internationally, complete acquisitions on satisfactory terms, to close pending acquisitions and to integrate acquired companies efficiently; |
• | changes in the amount of our growth and maintenance capital expenditures and our ability to invest according to plan; |
• | our ability to comply with our existing debt obligations and restrictions in our debt instruments or to obtain additional financing to meet our working capital needs; |
• | the impact of service interruptions or equipment damage and the cost of power on our data center operations; |
• | changes in the cost of our debt; |
• | the impact of alternative, more attractive investments on dividends; |
• | the cost or potential liabilities associated with real estate necessary for our business; |
• | the performance of business partners upon whom we depend for technical assistance or management expertise outside the United States; and |
• | other trends in competitive or economic conditions affecting our financial condition or results of operations not presently contemplated. |
Percentage of United States Dollar-Reported Revenue for the Three Months Ended March 31, | Average Exchange Rates for the Three Months Ended March 31, | Percentage Strengthening / (Weakening) of Foreign Currency | ||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Australian dollar | 3.4 | % | 3.9 | % | $ | 0.712 | $ | 0.786 | (9.4 | )% | ||||||
Brazilian real | 2.7 | % | 3.1 | % | $ | 0.265 | $ | 0.308 | (14.0 | )% | ||||||
British pound sterling | 6.6 | % | 6.8 | % | $ | 1.302 | $ | 1.391 | (6.4 | )% | ||||||
Canadian dollar | 5.8 | % | 6.1 | % | $ | 0.752 | $ | 0.791 | (4.9 | )% | ||||||
Euro | 7.5 | % | 7.0 | % | $ | 1.136 | $ | 1.229 | (7.6 | )% |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Income (Loss) from Continuing Operations | $ | 30,476 | $ | 45,614 | |||
Add/(Deduct): | |||||||
Provision (Benefit) for Income Taxes | 10,553 | 1,168 | |||||
Other Expense (Income), Net | 15,210 | 20,151 | |||||
Interest Expense, Net | 102,436 | 97,626 | |||||
Loss (Gain) on Disposal/Write-Down of Property, Plant and Equipment, Net | 602 | (1,130 | ) | ||||
Depreciation and Amortization | 162,483 | 160,578 | |||||
Significant Acquisition Costs | 2,746 | 19,008 | |||||
Adjusted EBITDA | $ | 324,506 | $ | 343,015 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Reported EPS—Fully Diluted from Continuing Operations | $ | 0.10 | $ | 0.16 | |||
Add/(Deduct): | |||||||
Income (Loss) Attributable to Noncontrolling Interests | — | — | |||||
Other Expense (Income), Net | 0.05 | 0.07 | |||||
Loss (Gain) on Disposal/Write-Down of Property, Plant and Equipment, Net | — | — | |||||
Significant Acquisition Costs | 0.01 | 0.07 | |||||
Tax Impact of Reconciling Items and Discrete Tax Items(1) | — | (0.05 | ) | ||||
Adjusted EPS—Fully Diluted from Continuing Operations(2) | $ | 0.17 | $ | 0.24 |
(1) | The difference between our effective tax rates and our structural tax rate (or adjusted effective tax rates) for the three months ended March 31, 2019 and 2018, respectively, is primarily due to (i) the reconciling items above, which impact our reported income (loss) from continuing operations before provision (benefit) for income taxes but have an insignificant impact on our reported provision (benefit) for income taxes and (ii) other discrete tax items. Our structural tax rate for purposes of the calculation of Adjusted EPS for the three months ended March 31, 2019 and 2018 was 18.9% and 19.5%, respectively. |
(2) | Columns may not foot due to rounding. |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Net Income (Loss) | $ | 30,452 | $ | 45,152 | |||
Add/(Deduct): | |||||||
Real Estate Depreciation(1) | 73,079 | 69,533 | |||||
Gains on Sale of Real Estate, Net of Tax | — | — | |||||
Data Center Lease-Based Intangible Assets Amortization(2) | 12,609 | 10,838 | |||||
FFO (Nareit) | 116,140 | 125,523 | |||||
Add/(Deduct): | |||||||
Loss (Gain) on Disposal/Write-Down of Property, Plant and Equipment (Excluding Real Estate), Net | 602 | (1,130 | ) | ||||
Other Expense (Income), Net(3) | 15,210 | 20,151 | |||||
Real Estate Financing Lease Depreciation | 3,504 | 3,446 | |||||
Significant Acquisition Costs | 2,746 | 19,008 | |||||
Tax Impact of Reconciling Items and Discrete Tax Items(4) | (709 | ) | (15,379 | ) | |||
Loss (Income) from Discontinued Operations, Net of Tax(5) | 24 | 462 | |||||
FFO (Normalized) | $ | 137,517 | $ | 152,081 |
(1) | Includes depreciation expense related to owned real estate assets (land improvements, buildings, building improvements, leasehold improvements and racking), excluding depreciation related to real estate financing leases. |
(2) | Includes amortization expense for data center in-place lease intangible assets and data center tenant relationship intangible assets as discussed in Note 2.b. to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report. |
(3) | Includes foreign currency transaction losses, net of $17.7 million and $21.8 million in the three months ended March 31, 2019 and 2018, respectively. See Note 2.j. to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding the components of Other (income) expense, net. |
(4) | Represents the tax impact of (i) the reconciling items above, which impact our reported income (loss) from continuing operations before provision (benefit) for income taxes but have an insignificant impact on our reported provision (benefit) for income taxes and (ii) other discrete tax items. Discrete tax items resulted in a (benefit) provision for income taxes of $(0.6) million and $(13.4) million for the three months ended March 31, 2019 and 2018, respectively. |
(5) | Net of a de minimis tax benefit for the three months ended March 31, 2019 and 2018. |
• | Revenue Recognition |
• | Accounting for Acquisitions |
• | Impairment of Tangible and Intangible Assets |
• | Income Taxes |
Three Months Ended March 31, | ||||||||||||||
Dollar Change | Percentage Change | |||||||||||||
2019 | 2018 | |||||||||||||
Revenues | $ | 1,053,863 | $ | 1,042,458 | $ | 11,405 | 1.1 | % | ||||||
Operating Expenses | 895,188 | 877,899 | 17,289 | 2.0 | % | |||||||||
Operating Income | 158,675 | 164,559 | (5,884 | ) | (3.6 | )% | ||||||||
Other Expenses, Net | 128,199 | 118,945 | 9,254 | 7.8 | % | |||||||||
Income from Continuing Operations | 30,476 | 45,614 | (15,138 | ) | (33.2 | )% | ||||||||
(Loss) Income from Discontinued Operations, Net of Tax | (24 | ) | (462 | ) | 438 | (94.8 | )% | |||||||
Net Income | 30,452 | 45,152 | (14,700 | ) | (32.6 | )% | ||||||||
Net Income (Loss) Attributable to Noncontrolling Interests | 891 | 468 | 423 | 90.4 | % | |||||||||
Net Income Attributable to Iron Mountain Incorporated | $ | 29,561 | $ | 44,684 | $ | (15,123 | ) | (33.8 | )% | |||||
Adjusted EBITDA(1) | $ | 324,506 | $ | 343,015 | $ | (18,509 | ) | (5.4 | )% | |||||
Adjusted EBITDA Margin(1) | 30.8 | % | 32.9 | % |
(1) | See "Non-GAAP Measures—Adjusted EBITDA" in this Quarterly Report for the definitions of Adjusted EBITDA and Adjusted EBITDA Margin, a reconciliation of Adjusted EBITDA to Income (Loss) from Continuing Operations and a discussion of why we believe these non-GAAP measures provide relevant and useful information to our current and potential investors. |
Three Months Ended March 31, | Percentage Change | |||||||||||||||||||
Dollar Change | Actual | Constant Currency(1) | Organic Growth(2) | |||||||||||||||||
2019 | 2018 | |||||||||||||||||||
Storage Rental | $ | 662,974 | $ | 651,149 | $ | 11,825 | 1.8 | % | 5.1 | % | 2.0 | % | ||||||||
Service | 390,889 | 391,309 | (420 | ) | (0.1 | )% | 3.5 | % | 1.8 | % | ||||||||||
Total Revenues | $ | 1,053,863 | $ | 1,042,458 | $ | 11,405 | 1.1 | % | 4.5 | % | 1.9 | % |
(1) | Constant currency growth rates are calculated by translating the 2018 results at the 2019 average exchange rates. |
(2) | Our organic revenue growth rate, which is a non-GAAP measure, represents the year-over-year growth rate of our revenues excluding the impact of business acquisitions, divestitures and foreign currency exchange rate fluctuations. Our organic revenue growth rate includes the impact of acquisitions of customer relationships. |
2017 | 2018 | 2019 | |||||||||||||||||||||
Second Quarter | Third Quarter | Fourth Quarter | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | First Quarter | ||||||||||||||||
Storage Rental Revenue | 4.8 | % | 3.5 | % | 4.2 | % | 3.7 | % | 1.9 | % | 2.3 | % | 1.9 | % | 2.0 | % | |||||||
Service Revenue | (1.1 | )% | (0.2 | )% | (0.1 | )% | 1.4 | % | 7.6 | % | 7.1 | % | 6.1 | % | 1.8 | % | |||||||
Total Revenues | 2.5 | % | 2.0 | % | 2.5 | % | 2.8 | % | 4.1 | % | 4.1 | % | 3.5 | % | 1.9 | % |
Three Months Ended March 31, | Percentage Change | % of Consolidated Revenues | Percentage Change (Favorable)/ Unfavorable | |||||||||||||||||||||||
Dollar Change | Actual | Constant Currency | ||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||
Labor | $ | 205,291 | $ | 208,907 | $ | (3,616 | ) | (1.7 | )% | 2.5 | % | 19.5 | % | 20.0 | % | (0.5 | )% | |||||||||
Facilities | 174,719 | 162,112 | 12,607 | 7.8 | % | 11.6 | % | 16.6 | % | 15.6 | % | 1.0 | % | |||||||||||||
Transportation | 41,040 | 38,273 | 2,767 | 7.2 | % | 11.3 | % | 3.9 | % | 3.7 | % | 0.2 | % | |||||||||||||
Product Cost of Sales and Other | 39,596 | 39,133 | 463 | 1.2 | % | 5.9 | % | 3.8 | % | 3.8 | % | — | % | |||||||||||||
Significant Acquisition Costs | 898 | 296 | 602 | 203.4 | % | 279.7 | % | 0.1 | % | — | % | 0.1 | % | |||||||||||||
Total Cost of Sales | $ | 461,544 | $ | 448,721 | $ | 12,823 | 2.9 | % | 7.0 | % | 43.8 | % | 43.0 | % | 0.8 | % |
Three Months Ended March 31, | Percentage Change | % of Consolidated Revenues | Percentage Change (Favorable)/ Unfavorable | |||||||||||||||||||||||
Dollar Change | Actual | Constant Currency | ||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||
General and Administrative | $ | 151,332 | $ | 136,293 | $ | 15,039 | 11.0 | % | 14.6 | % | 14.4 | % | 13.1 | % | 1.3 | % | ||||||||||
Sales, Marketing & Account Management | 66,170 | 68,873 | (2,703 | ) | (3.9 | )% | (1.4 | )% | 6.3 | % | 6.6 | % | (0.3 | )% | ||||||||||||
Information Technology | 46,171 | 39,504 | 6,667 | 16.9 | % | 19.1 | % | 4.4 | % | 3.8 | % | 0.6 | % | |||||||||||||
Bad Debt Expense | 5,038 | 6,348 | (1,310 | ) | (20.6 | )% | (18.6 | )% | 0.5 | % | 0.6 | % | (0.1 | )% | ||||||||||||
Significant Acquisition Costs | 1,848 | 18,712 | (16,864 | ) | (90.1 | )% | (90.0 | )% | 0.2 | % | 1.8 | % | (1.6 | )% | ||||||||||||
Total Selling, General and Administrative Expenses | $ | 270,559 | $ | 269,730 | $ | 829 | 0.3 | % | 3.0 | % | 25.7 | % | 25.9 | % | (0.2 | )% |
Three Months Ended March 31, | Dollar Change | ||||||||||
2019 | 2018 | ||||||||||
Foreign currency transaction losses (gains), net | $ | 17,697 | $ | 21,785 | $ | (4,088 | ) | ||||
Other, net | (2,487 | ) | (1,634 | ) | (853 | ) | |||||
$ | 15,210 | $ | 20,151 | $ | (4,941 | ) |
Three Months Ended March 31, | ||||||
2019(1) | 2 | 2018(2) | ||||
Effective Tax Rate | 25.7 | % | 2.5 |
(1) | The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three months ended March 31, 2019 were the benefit derived from the dividends paid deduction and the impact of differences in the tax rates at which our foreign earnings are subject, including foreign exchange gains and losses in different jurisdictions with different tax rates. |
(2) | The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three months ended March 31, 2018 were the benefit derived from the dividends paid deduction, a discrete tax benefit of approximately $14.0 million associated with the resolution of a tax matter and the impact of differences in the tax rates at which our foreign earnings are subject, including foreign exchange gains and losses in different jurisdictions with different tax rates. |
Three Months Ended March 31, | Dollar Change | Percentage Change | ||||||||||||
2019 | 2018 | |||||||||||||
Income from Continuing Operations | $ | 30,476 | $ | 45,614 | $ | (15,138 | ) | (33.2 | )% | |||||
Income from Continuing Operations as a percentage of Consolidated Revenue | 2.9 | % | 4.4 | % | ||||||||||
Adjusted EBITDA | $ | 324,506 | $ | 343,015 | $ | (18,509 | ) | (5.4 | )% | |||||
Adjusted EBITDA Margin | 30.8 | % | 32.9 | % |
Three Months Ended March 31, | Percentage Change | |||||||||||||||||||
Dollar Change | Actual | Constant Currency | Organic Growth | |||||||||||||||||
2019 | 2018 | |||||||||||||||||||
Storage Rental | $ | 306,986 | $ | 304,819 | $ | 2,167 | 0.7 | % | 1.2 | % | 1.4 | % | ||||||||
Service | 220,394 | 222,024 | (1,630 | ) | (0.7 | )% | (0.2 | )% | 2.3 | % | ||||||||||
Segment Revenue | $ | 527,380 | $ | 526,843 | $ | 537 | 0.1 | % | 0.6 | % | 1.8 | % | ||||||||
Segment Adjusted EBITDA(1) | $ | 223,683 | $ | 225,738 | $ | (2,055 | ) | |||||||||||||
Segment Adjusted EBITDA Margin(2) | 42.4 | % | 42.8 | % |
(1) | See "Non-GAAP Measures—Adjusted EBITDA" in this Quarterly Report for the definitions of Adjusted EBITDA and Adjusted EBITDA Margin, a reconciliation of Adjusted EBITDA to Income (Loss) from Continuing Operations and a discussion of why we believe these non-GAAP measures provide relevant and useful information to our current and potential investors. |
(2) | Segment Adjusted EBITDA Margin is calculated by dividing Segment Adjusted EBITDA by total segment revenues. |
Three Months Ended March 31, | Percentage Change | |||||||||||||||||||
Dollar Change | Actual | Constant Currency | Organic Growth | |||||||||||||||||
2019 | 2018 | |||||||||||||||||||
Storage Rental | $ | 66,572 | $ | 69,246 | $ | (2,674 | ) | (3.9 | )% | (3.5 | )% | (2.9 | )% | |||||||
Service | 30,175 | 30,718 | (543 | ) | (1.8 | )% | (1.4 | )% | (3.2 | )% | ||||||||||
Segment Revenue | $ | 96,747 | $ | 99,964 | $ | (3,217 | ) | (3.2 | )% | (2.9 | )% | (3.0 | )% | |||||||
Segment Adjusted EBITDA(1) | $ | 50,552 | $ | 53,852 | $ | (3,300 | ) | |||||||||||||
Segment Adjusted EBITDA Margin(2) | 52.3 | % | 53.9 | % |
(1) | See "Non-GAAP Measures—Adjusted EBITDA" in this Quarterly Report for the definitions of Adjusted EBITDA and Adjusted EBITDA Margin, a reconciliation of Adjusted EBITDA to Income (Loss) from Continuing Operations and a discussion of why we believe these non-GAAP measures provide relevant and useful information to our current and potential investors. |
(2) | Segment Adjusted EBITDA Margin is calculated by dividing Segment Adjusted EBITDA by total segment revenues. |
Three Months Ended March 31, | Percentage Change | |||||||||||||||||||
Dollar Change | Actual | Constant Currency | Organic Growth | |||||||||||||||||
2019 | 2018 | |||||||||||||||||||
Storage Rental | $ | 80,695 | $ | 83,952 | $ | (3,257 | ) | (3.9 | )% | 3.3 | % | 3.3 | % | |||||||
Service | 48,058 | 50,123 | (2,065 | ) | (4.1 | )% | 3.0 | % | 3.0 | % | ||||||||||
Segment Revenue | $ | 128,753 | $ | 134,075 | $ | (5,322 | ) | (4.0 | )% | 3.2 | % | 3.2 | % | |||||||
Segment Adjusted EBITDA(1) | $ | 39,209 | $ | 43,966 | $ | (4,757 | ) | |||||||||||||
Segment Adjusted EBITDA Margin(2) | 30.5 | % | 32.8 | % |
(1) | See "Non-GAAP Measures—Adjusted EBITDA" in this Quarterly Report for the definitions of Adjusted EBITDA and Adjusted EBITDA Margin, a reconciliation of Adjusted EBITDA to Income (Loss) from Continuing Operations and a discussion of why we believe these non-GAAP measures provide relevant and useful information to our current and potential investors. |
(2) | Segment Adjusted EBITDA Margin is calculated by dividing Segment Adjusted EBITDA by total segment revenues. |
Three Months Ended March 31, | Percentage Change | |||||||||||||||||||
Dollar Change | Actual | Constant Currency | Organic Growth | |||||||||||||||||
2019 | 2018 | |||||||||||||||||||
Storage Rental | $ | 129,473 | $ | 131,747 | $ | (2,274 | ) | (1.7 | )% | 8.6 | % | 4.6 | % | |||||||
Service | 71,483 | 79,020 | (7,537 | ) | (9.5 | )% | 1.3 | % | (0.6 | )% | ||||||||||
Segment Revenue | $ | 200,956 | $ | 210,767 | $ | (9,811 | ) | (4.7 | )% | 5.9 | % | 2.7 | % | |||||||
Segment Adjusted EBITDA(1) | $ | 58,124 | $ | 60,747 | $ | (2,623 | ) | |||||||||||||
Segment Adjusted EBITDA Margin(2) | 28.9 | % | 28.8 | % |
(1) | See "Non-GAAP Measures—Adjusted EBITDA" in this Quarterly Report for the definitions of Adjusted EBITDA and Adjusted EBITDA Margin, a reconciliation of Adjusted EBITDA to Income (Loss) from Continuing Operations and a discussion of why we believe these non-GAAP measures provide relevant and useful information to our current and potential investors. |
(2) | Segment Adjusted EBITDA Margin is calculated by dividing Segment Adjusted EBITDA by total segment revenues. |
Three Months Ended March 31, | Percentage Change | |||||||||||||||||||
Dollar Change | Actual | Constant Currency | Organic Growth | |||||||||||||||||
2019 | 2018 | |||||||||||||||||||
Storage Rental | $ | 59,718 | $ | 45,495 | $ | 14,223 | 31.3 | % | 31.4 | % | 2.6 | % | ||||||||
Service | 1,818 | 1,108 | 710 | 64.1 | % | 64.2 | % | 34.2 | % | |||||||||||
Segment Revenue | $ | 61,536 | $ | 46,603 | $ | 14,933 | 32.0 | % | 32.2 | % | 3.3 | % | ||||||||
Segment Adjusted EBITDA(1) | $ | 26,011 | $ | 20,790 | $ | 5,221 | ||||||||||||||
Segment Adjusted EBITDA Margin(2) | 42.3 | % | 44.6 | % |
(1) | See "Non-GAAP Measures—Adjusted EBITDA" in this Quarterly Report for the definitions of Adjusted EBITDA and Adjusted EBITDA Margin, a reconciliation of Adjusted EBITDA to Income (Loss) from Continuing Operations and a discussion of why we believe these non-GAAP measures provide relevant and useful information to our current and potential investors. |
(2) | Segment Adjusted EBITDA Margin is calculated by dividing Segment Adjusted EBITDA by total segment revenues. |
Three Months Ended March 31, | Percentage Change | |||||||||||||||||||
Dollar Change | Actual | Constant Currency | Organic Growth | |||||||||||||||||
2019 | 2018 | |||||||||||||||||||
Storage Rental | $ | 19,530 | $ | 15,890 | $ | 3,640 | 22.9 | % | 24.3 | % | 7.0 | % | ||||||||
Service | 18,961 | 8,316 | 10,645 | 128.0 | % | 139.3 | % | 16.2 | % | |||||||||||
Segment Revenue | $ | 38,491 | $ | 24,206 | $ | 14,285 | 59.0 | % | 62.8 | % | 10.1 | % | ||||||||
Segment Adjusted EBITDA(1) | $ | (73,073 | ) | $ | (62,078 | ) | $ | (10,995 | ) | |||||||||||
Segment Adjusted EBITDA(1) as a percentage of Consolidated Revenue | (6.9 | )% | (6.0 | )% |
(1) | See "Non-GAAP Measures—Adjusted EBITDA" in this Quarterly Report for the definitions of Adjusted EBITDA and Adjusted EBITDA Margin, a reconciliation of Adjusted EBITDA to Income (Loss) from Continuing Operations and a discussion of why we believe these non-GAAP measures provide relevant and useful information to our current and potential investors. |
2019 | 2018 | ||||||
Cash flows from operating activities - continuing operations | $ | 117,067 | $ | 91,568 | |||
Cash flows from investing activities - continuing operations | (311,217 | ) | (1,562,012 | ) | |||
Cash flows from financing activities - continuing operations | 187,736 | 985,252 | |||||
Cash and cash equivalents at the end of period | 161,475 | 442,491 |
• | We paid cash for acquisitions (net of cash acquired) of $39.4 million, primarily funded by borrowings under our revolving credit facility (the "Revolving Credit Facility"). |
• | We paid cash for capital expenditures of $184.8 million. Our business requires capital expenditures to maintain our ongoing operations, support our expected revenue growth and new products and services, and increase our profitability. All of these expenditures are included in the cash flows from investing activities. Additional details of our capital spending is included in the Capital Expenditures section below. |
• | We acquired customer relationships, and incurred both (i) customer inducements (which consist primarily of permanent withdrawal fees) and (ii) Contract Fulfillment Costs (as defined in Note 2.c. to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report) and third-party commissions during the three months ended March 31, 2019 of $23.9 million, $2.8 million and $41.2 million, respectively. |
• | We paid $19.2 million as part of our investment in Makespace (as discussed in Note 9 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report). |
• | Net proceeds of $372.2 million primarily associated with the borrowings and repayments on our Revolving Credit Facility. |
• | Payment of dividends in the amount of $178.0 million on our common stock. |
Three Months Ended March 31, | ||||||||
Nature of Capital Spend (in thousands) | 2019 | 2018 | ||||||
Growth Investment Capital Expenditures: | ||||||||
Real Estate(1) | $ | 14,836 | $ | 21,207 | ||||
Non-Real Estate(2) | 8,825 | 8,309 | ||||||
Data Center(3) | 131,078 | 14,770 | ||||||
Innovation(1) | 4,781 | 2,193 | ||||||
Total Growth Investment Capital Expenditures | 159,520 | 46,479 | ||||||
Recurring Capital Expenditures: | ||||||||
Real Estate(2) | 10,699 | 8,999 | ||||||
Non-Real Estate(2) | 4,496 | 5,961 | ||||||
Data Center(3) | 662 | 426 | ||||||
Total Recurring Capital Expenditures | 15,857 | 15,386 | ||||||
Total Capital Spend (on accrual basis) | 175,377 | 61,865 | ||||||
Net increase (decrease) in prepaid capital expenditures | 1,069 | (598 | ) | |||||
Net decrease (increase) in accrued capital expenditures | 8,319 | 34,338 | ||||||
Total Capital Spend (on cash basis) | $ | 184,765 | $ | 95,605 |
(1) | Growth investment capital expenditures on real estate growth and innovation to be approximately $175.0 million; |
(2) | Recurring capital expenditures on real estate and non-real estate, as well as non-real estate growth investment capital expenditures, to be approximately $145.0 million to $155.0 million; and |
(3) | Capital expenditures on our data center business to be approximately $250.0 million. |
March 31, 2019 | ||||||||||||
Debt (inclusive of discount) | Unamortized Deferred Financing Costs | Carrying Amount | ||||||||||
Revolving Credit Facility | $ | 1,139,566 | $ | (13,332 | ) | $ | 1,126,234 | |||||
Term Loan A | 237,500 | — | 237,500 | |||||||||
Term Loan B | 691,476 | (8,430 | ) | 683,046 | ||||||||
Australian Dollar Term Loan | 234,000 | (2,893 | ) | 231,107 | ||||||||
UK Bilateral Revolving Credit Facility | 182,450 | (2,255 | ) | 180,195 | ||||||||
43/8% Senior Notes due 2021 | 500,000 | (3,725 | ) | 496,275 | ||||||||
6% Senior Notes due 2023 | 600,000 | (4,851 | ) | 595,149 | ||||||||
53/8% CAD Senior Notes due 2023 | 187,262 | (2,424 | ) | 184,838 | ||||||||
53/4% Senior Subordinated Notes due 2024 | 1,000,000 | (7,439 | ) | 992,561 | ||||||||
3% Euro Senior Notes due 2025 | 336,557 | (3,941 | ) | 332,616 | ||||||||
37/8% GBP Senior Notes due 2025 (the "GBP Notes") | 521,286 | (6,480 | ) | 514,806 | ||||||||
53/8% Senior Notes due 2026 | 250,000 | (3,078 | ) | 246,922 | ||||||||
47/8% Senior Notes due 2027 (the "47/8% Notes") | 1,000,000 | (12,086 | ) | 987,914 | ||||||||
51/4% Senior Notes due 2028 (the "51/4% Notes") | 825,000 | (10,628 | ) | 814,372 | ||||||||
Real Estate Mortgages, Financing Lease Liabilities and Other | 566,677 | (431 | ) | 566,246 | ||||||||
Accounts Receivable Securitization Program | 252,373 | (184 | ) | 252,189 | ||||||||
Mortgage Securitization Program | 50,000 | (1,091 | ) | 48,909 | ||||||||
Total Long-term Debt | 8,574,147 | (83,268 | ) | 8,490,879 | ||||||||
Less Current Portion | (125,142 | ) | — | (125,142 | ) | |||||||
Long-term Debt, Net of Current Portion | $ | 8,449,005 | $ | (83,268 | ) | $ | 8,365,737 |
March 31, 2019 | December 31, 2018 | Maximum/Minimum Allowable | |||||
Net total lease adjusted leverage ratio | 5.8 | 5.6 | Maximum allowable of 6.5 | ||||
Net secured debt lease adjusted leverage ratio | 2.8 | 2.6 | Maximum allowable of 4.0 | ||||
Bond leverage ratio (not lease adjusted) | 6.1 | 5.8 | Maximum allowable of 6.5-7.0(1) | ||||
Fixed charge coverage ratio | 2.2 | 2.2 | Minimum allowable of 1.5 |
(1) | The maximum allowable leverage ratio under our indentures for the 47/8% Notes, the GBP Notes and the 51/4% Notes is 7.0, while the maximum allowable leverage ratio under the indentures pertaining to our remaining senior and senior subordinated notes is 6.5. In certain instances as provided in our indentures, we have the ability to incur additional indebtedness that would result in our bond leverage ratio exceeding the maximum allowable ratio under our indentures and still remain in compliance with the covenant. |
Cumulative Total Through March 31, 2019 | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | ||||||||||
Significant Acquisition Costs | $ | 317,270 | $ | 2,746 | $ | 19,008 | ||||||
Recall Capital Expenditures | 74,730 | 1,193 | 1,884 | |||||||||
Total | $ | 392,000 | $ | 3,939 | $ | 20,892 |
Exhibit No. | Description | ||
10.1 | |||
10.2 | |||
10.3 | |||
31.1 | Rule 13a-14(a) Certification of Chief Executive Officer. (Filed herewith.) | ||
31.2 | Rule 13a-14(a) Certification of Chief Financial Officer. (Filed herewith.) | ||
32.1 | Section 1350 Certification of Chief Executive Officer. (Furnished herewith.) | ||
32.2 | Section 1350 Certification of Chief Financial Officer. (Furnished herewith.) | ||
101.1 | The following materials from Iron Mountain Incorporated's Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, formatted in XBRL (eXtensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Comprehensive Income (Loss), (iv) Condensed Consolidated Statements of Equity, (v) Condensed Consolidated Statements of Cash Flows and (vi) Notes to Condensed Consolidated Financial Statements, tagged as blocks of text and in detail. (Filed herewith.) |
IRON MOUNTAIN INCORPORATED | ||
By: | /s/ DANIEL BORGES | |
Daniel Borges Senior Vice President, Chief Accounting Officer |
a. | The Recipient hereby acknowledges and understands that the Recipient’s personal data is collected, retained, used, processed, disclosed and transferred, in electronic or other form, as described in this Performance Unit Agreement by and among, as applicable, the Recipient’s employer, the Company and its subsidiaries, and third parties assisting in the implementation, administration and management of the Plan for the exclusive purpose of implementing, administering and managing the Recipient’s participation in the Plan. |
b. | The Recipient understands that the Company and its subsidiaries (including his or her employer), as applicable, hold certain personal information about him or her regarding the Recipient’s employment, the nature and amount of the Recipient’s compensation and the fact and conditions of the Recipient’s participation in the Plan, including, but not limited to, his or her name, home address, telephone number and e-mail address, date of birth, social insurance number or other identification number, salary, nationality, job title, any equity or directorships held in the Company and details of all options or any other entitlement to equity awarded, canceled, exercised, vested, unvested or outstanding in his or her favor, in connection with the implementation, management and administration of the Plan (the “Data”). |
c. | The Recipient understands that the Data may be transferred to the Company, its subsidiaries and any third parties assisting in the implementation, administration and management of the Plan, that these entities or persons may be located in the Recipient’s country, or elsewhere, and that such entity or person’s country may have a different or lower standard of data privacy rights and protections than Recipient’s country. The Recipient understands that he or she may request a list with the names and addresses of any entities or persons that receive the Data by contacting the Recipient’s local human resources representative. The Recipient understands that the entities or persons receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing his or her participation in the Plan, including transfers of such Data to a broker or other third party. The Recipient understands that the Data will be held only as long as is necessary to implement, administer and manage his or her participation in the Plan in accordance with applicable law. The Recipient understands that he or she may, at any time, request to access or be provided the Data, request additional information about the storage and processing of the Data, require any corrections or amendments to the Data in any case without cost and to the extent permitted by law, by contacting in writing his or her local human resources representative. The Recipient understands, however, that objecting to the processing of his or her Data may affect the Recipient’s ability to participate in the Plan. |
(1) | This offer does not require a prospectus to be submitted for approval to the Autorité des Marchés Financiers (“AMF”); |
(2) | The Recipient may take part in the offer solely for his or her own account; and |
(3) | Any financial instruments thus acquired cannot be distributed directly or indirectly to the public otherwise than in accordance with Articles L. 411-1, L. 411-2, L. 412-1 and L. 621-8 to L. 621-8-3 of the Monetary and Financial Code. |
i. | The Recipient hereby acknowledges and understands that the Recipient’s personal data is collected, retained, used, processed, disclosed and transferred, in electronic or other form, as described in this Restricted Stock Unit Agreement by and among, as applicable, the Recipient’s employer, the Company and its subsidiaries, and third parties assisting in the implementation, administration and management of the |
ii. | The Recipient understands that the Company and its subsidiaries (including his or her employer), as applicable, hold certain personal information about him or her regarding the Recipient’s employment, the nature and amount of the Recipient’s compensation and the fact and conditions of the Recipient’s participation in the Plan, including, but not limited to, his or her name, home address, telephone number and e-mail address, date of birth, social insurance number or other identification number, salary, nationality, job title, any equity or directorships held in the Company and details of all options or any other entitlement to equity awarded, canceled, exercised, vested, unvested or outstanding in his or her favor, in connection with the implementation, management and administration of the Plan (the “Data”). |
(1) | This offer does not require a prospectus to be submitted for approval to the Autorité des Marchés Financiers (“AMF”); |
(2) | The Optionee may take part in the offer solely for his or her own account; and |
(3) | Any financial instruments thus acquired cannot be distributed directly or indirectly to the public otherwise than in accordance with Articles L. 411-1, L. 411-2, L. 412-1 and L. 621-8 to L. 621-8-3 of the Monetary and Financial Code. |
i. | The Optionee hereby acknowledges and understands that the Optionee’s personal data is collected, retained, used, processed, disclosed and transferred, in electronic or other form, as described in this Option Agreement by and among, as applicable, the Optionee’s employer, the Company and its subsidiaries, and third parties assisting in the implementation, administration and management of the Plan for the exclusive purpose of implementing, administering and managing the Optionee’s participation in the Plan. |
ii. | The Optionee understands that the Company and its subsidiaries (including his or her employer), as applicable, hold certain personal information about him or her regarding the Optionee’s employment, the nature and amount of the Optionee’s compensation and the fact and conditions of the Optionee’s participation in the Plan, including, but not limited to, his or her name, home address, telephone number and e-mail address, date of birth, social insurance number or other identification number, salary, nationality, job title, any equity or directorships held in the Company and details of all options or any other entitlement to equity awarded, canceled, exercised, vested, unvested or outstanding in his or her favor, in connection with the implementation, management and administration of the Plan (the “Data”). |
iii. | The Optionee understands that the Data may be transferred to the Company, its subsidiaries and any third parties assisting in the implementation, administration and management of the Plan, that these entities or persons may be located in the Optionee’s country, or elsewhere, and that such entity or person’s country may have a different or lower standard of data privacy rights and protections than Optionee’s country. The Optionee understands that he or she may request a list with the names and addresses of any entities or persons that receive the Data by contacting the Optionee’s local human resources representative. The Optionee understands that the entities or persons receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing his or her participation in the Plan, including transfers of such Data to a broker or other third party. The Optionee understands that the Data will be held only as long as is necessary to implement, administer and manage his or her participation in the Plan in accordance with applicable law. The Optionee understands that he or she may, at any time, request to access or be provided the Data, request additional information about the storage and processing of the Data, require any corrections or amendments to the Data in any case without cost and to the extent permitted by law, by contacting in writing his or her local human resources representative. The Optionee understands, however, that objecting to the processing of his or her Data may affect the Optionee’s ability to participate in the Plan. |
1. | I have reviewed this quarterly report on Form 10-Q of Iron Mountain Incorporated; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ WILLIAM L. MEANEY | ||
William L. Meaney | ||
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Iron Mountain Incorporated; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ STUART B. BROWN | ||
Stuart B. Brown | ||
Executive Vice President and Chief Financial Officer |
/s/ WILLIAM L. MEANEY | ||
William L. Meaney | ||
President and Chief Executive Officer |
/s/ STUART B. BROWN | ||
Stuart B. Brown | ||
Executive Vice President and Chief Financial Officer |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Apr. 19, 2019 |
|
Document and Entity Information | ||
Entity Registrant Name | IRON MOUNTAIN INC | |
Entity Central Index Key | 0001020569 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 286,880,641 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances (in dollars) | $ 42,074 | $ 43,584 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized shares | 10,000,000 | 10,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 400,000,000 | 400,000,000 |
Common stock, issued shares | 286,829,854 | 286,321,009 |
Common stock, outstanding shares | 286,829,854 | 286,321,009 |
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Income Statement [Abstract] | ||
Interest Income | $ 1,785 | $ 1,386 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Statement of Comprehensive Income [Abstract] | ||
Net Income (Loss) | $ 30,452 | $ 45,152 |
Other Comprehensive Income (Loss): | ||
Foreign Currency Translation Adjustment | 18,191 | 31,651 |
Change in Fair Value of Interest Rate Swap Agreements | (2,674) | (185) |
Total Other Comprehensive Income (Loss) | 15,517 | 31,466 |
Comprehensive Income (Loss) | 45,969 | 76,618 |
Comprehensive Income (Loss) Attributable to Noncontrolling Interests | 1,704 | 2,027 |
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated | $ 44,265 | $ 74,591 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Statement of Cash Flows [Abstract] | ||
Deferred financing costs and discount included in Amortization | $ 4,108 | $ 3,553 |
General |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General The interim condensed consolidated financial statements are presented herein and, in the opinion of management, reflect all adjustments of a normal recurring nature necessary for a fair presentation. Interim results are not necessarily indicative of results for a full year. Iron Mountain Incorporated, a Delaware corporation ("IMI"), and its subsidiaries ("we" or "us") provide storage of physical records and data backup media, information management solutions and enterprise-class colocation and wholesale data center space that help organizations in various locations throughout North America, Europe, Latin America, Asia and Africa. We offer comprehensive records and information management services and data management services, along with the expertise and experience to address complex storage and information management challenges such as rising storage rental costs, legal and regulatory compliance and disaster recovery requirements. We provide secure and reliable data center facilities to protect digital information and ensure the continued operation of our customers’ information technology infrastructure, with flexible deployment options, including both colocation and wholesale space. The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the "SEC"). Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been omitted pursuant to those rules and regulations, but we believe that the disclosures included herein are adequate to make the information presented not misleading. The Condensed Consolidated Financial Statements and Notes thereto, which are included herein, should be read in conjunction with the Consolidated Financial Statements and Notes thereto for the year ended December 31, 2018 included in our Annual Report on Form 10-K filed with the SEC on February 14, 2019 (our "Annual Report"). We have been organized and have operated as a real estate investment trust for United States federal income tax purposes ("REIT") beginning with our taxable year ended December 31, 2014. On January 10, 2018, we completed the acquisition of IO Data Centers, LLC ("IODC") (the "IODC Transaction"). See Note 3. On January 1, 2019, we adopted Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842), as amended ("ASU 2016-02"). See Note 2.d. |
Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | Summary of Significant Accounting Policies This Note 2 to Notes to Condensed Consolidated Financial Statements provides information and disclosure regarding certain of our significant accounting policies and should be read in conjunction with Note 2 to Notes to Consolidated Financial Statements included in our Annual Report, which may provide additional information with regard to the accounting policies set forth herein and other of our significant accounting policies. a. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include cash on hand and cash invested in highly liquid short-term securities, which have remaining maturities at the date of purchase of less than 90 days. Cash and cash equivalents are carried at cost, which approximates fair value. At March 31, 2019 and December 31, 2018, we had approximately $15,250 and $15,141, respectively, of restricted cash held by certain financial institutions related to bank guarantees. b. Goodwill and Other Intangible Assets and Liabilities Goodwill Since December 31, 2018, there have been no changes to our accounting polices related to the accounting for goodwill. As of March 31, 2019 and December 31, 2018, no factors were identified that would alter our October 1, 2018 goodwill impairment analysis. Our reporting units as of December 31, 2018 are described in detail in Note 2.h. to Notes to Consolidated Financial Statements included in our Annual Report. On March 19, 2019, we divested the business included in our former Consumer Storage reporting unit, which had no goodwill associated with it at December 31, 2018 or at the date of the divestment. See Note 9 for additional information. The goodwill associated with acquisitions completed during the first three months of 2019 (which are described in Note 3) has been incorporated into our reporting units as they existed as of December 31, 2018. The changes in the carrying value of goodwill attributable to each reportable operating segment for the three months ended March 31, 2019 are as follows:
_______________________________________________________________________________
Finite-lived Intangible Assets and Liabilities Finite-lived intangible assets and liabilities are primarily comprised of customer relationship intangible assets, customer inducements and data center intangible assets and liabilities (which include data center in-place lease intangible assets, data center tenant relationship intangible assets, data center above-market in-place lease intangible assets and data center below-market in-place lease intangible assets). Since December 31, 2018, there have been no changes to our accounting policies related to the accounting for any of our finite-lived intangible assets and liabilities as disclosed in Note 2.i. to Notes to Consolidated Financial Statements included in our Annual Report. The gross carrying amount and accumulated amortization of our finite-lived intangible assets as of March 31, 2019 and December 31, 2018 are as follows:
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Other finite-lived intangible assets, including trade names, noncompetition agreements and trademarks, are capitalized and amortized and are included in depreciation and amortization in the accompanying Condensed Consolidated Statements of Operations for the three months ended March 31, 2019 and 2018. The other finite-lived intangible assets as of March 31, 2019 and December 31, 2018 are as follows:
Amortization expense associated with finite-lived intangible assets, revenue reduction associated with the amortization of customer inducements and net revenue reduction associated with the amortization of data center above-market leases and data center below-market leases for the three months ended March 31, 2019 and 2018 are as follows:
c. Revenues Since December 31, 2018, there have been no changes to our accounting policies related to the accounting for revenues as disclosed in Note 2.l. to Notes to Consolidated Financial Statements included in our Annual Report. The costs of the initial intake of customer records into physical storage ("Intake Costs") and capitalized commissions asset (collectively, "Contract Fulfillment Costs") as of March 31, 2019 and December 31, 2018 are as follows:
Amortization expense associated with the Intake Costs asset and capitalized commissions asset for the three months ended March 31, 2019 and 2018 are as follows:
Deferred revenue liabilities are reflected as follows in our Condensed Consolidated Balance Sheets:
Data Center Lessor Considerations Our data center business features storage rental provided to customers at contractually specified rates over a fixed contractual period. Prior to January 1, 2019, our data center revenue contracts were accounted for in accordance with Accounting Standards Codification (“ASC”) No. 840, Leases ("ASC 840"). On January 1, 2019, we adopted ASU 2016-02, as described in more detail in Note 2.d. Beginning on January 1, 2019, our data center revenue contracts will be accounted for in accordance with ASU 2016-02. ASU 2016-02 provides a practical expedient which allows lessors to account for nonlease components (such as power and connectivity, in the case of our data center business) with the related lease component if both the timing and pattern of transfer are the same for nonlease components and the lease component, and the lease component would be classified as an operating lease. The single combined component is accounted for under ASU 2016-02 if the lease component is the predominant component and is accounted for under ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), if the nonlease components are the predominant components. We have elected to take this practical expedient. Storage rental revenue associated with our data center business was $59,718 for the three months ended March 31, 2019, which includes approximately $9,100 of revenue associated with power and connectivity. The revenue related to the service component of our data center business remains unchanged from the adoption of ASU 2016-02 and is recognized in the period the related services are provided. Our accounting treatment for data center revenue was not significantly impacted by the adoption of ASU 2016-02. d. Leases We lease facilities for certain warehouses, data centers and office space. We also have land leases, including those on which certain facilities are located. The majority of our leased facilities are classified as operating leases that, on average, have initial lease terms of five to 10 years, with one or more lease renewal options to extend the lease term. Our lease renewal option terms generally range from one to five years. The exercise of the lease renewal option is at our sole discretion and may contain fixed rent, fair market value based rent or Consumer Price Index rent escalation clauses. We include option periods in the lease term when our failure to renew the lease would result in an economic disincentive, thereby making it reasonably certain that we will renew the lease. We recognize straight line rental expense over the life of the lease and any fair market value or Consumer Price Index rent escalations are recognized as variable lease expense in the period in which the obligation is incurred. In addition, we lease certain vehicles and equipment. Vehicle and equipment leases have lease terms ranging from one to seven years. In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases (Topic 842) which requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases, both operating and financing (formerly referred to as capital leases under ASC 840). ASU 2016-02 requires certain qualitative and quantitative disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. We adopted ASU 2016-02 on January 1, 2019 on a modified retrospective basis under which we recognized and measured leases existing at, or entered into after, the beginning of the period of adoption. Therefore, we applied ASC 840 to all earlier comparative periods (prior to the adoption of ASU 2016-02), including disclosures, and recognized the effects of applying ASU 2016-02 as a cumulative-effect adjustment to retained earnings as of January 1, 2019, the effective date of the standard. As such, the comparative Condensed Consolidated Balance Sheet as of December 31, 2018 has not been restated to reflect the adoption of ASU 2016-02. Accordingly, the majority of the amount presented as deferred rent liabilities on our Consolidated Balance Sheet as of December 31, 2018 is now included in the calculation of operating lease right-of-use assets and any remaining amounts are now classified within other liability line items on our Condensed Consolidated Balance Sheet as of March 31, 2019. The transition guidance associated with ASU 2016-02 also permitted certain practical expedients. We elected the "package of 3" practical expedients permitted under the transition guidance which, among other things, allowed us to carryforward our historical lease classifications. We also adopted an accounting policy which provides that leases with an initial term of 12 months or less will not be included within the lease right-of-use assets and lease liabilities recognized on our Condensed Consolidated Balance Sheets after the adoption of ASU 2016-02. We will continue to recognize the lease payments for those leases with an initial term of 12 months or less in the Consolidated Statements of Operations on a straight-line basis over the lease term. The lease right-of-use assets and related lease liabilities are classified as either operating or financing. Lease right-of-use assets are calculated as the net present value of future payments plus any capitalized initial direct costs less any tenant improvements or lease incentives. Lease liabilities are calculated as the net present value of future payments. In calculating the present value of the lease payments, we will utilize the rate stated within the lease (in the limited circumstances when such rate is available) or, if no rate is explicitly stated, we have elected to utilize a rate that reflects our securitized incremental borrowing rate by geography for the lease term. In July 2018, the FASB issued ASU 2018-11, Leases - Targeted Improvements ("ASU 2018-11"). ASU 2018-11 provides a practical expedient which allows lessees to account for nonlease components (which include common area maintenance, taxes, and insurance) with the related lease component. Any variable nonlease components are not included within the lease right-of-use asset and lease liability on the Condensed Consolidated Balance Sheets, and instead, are reflected as an expense in the period incurred. We have elected to take this practical expedient upon adoption of ASU 2016-02. At January 1, 2019, we recognized the cumulative effect of initially applying ASU 2016-02 as an adjustment to the opening balance of (distributions in excess of earnings) earnings in excess of distributions, resulting in an increase of approximately $5,800 to stockholders' equity due to certain build to suit leases that were accounted for as financing leases under ASC 840, Leases, but are accounted for as operating leases under ASU 2016-02 at January 1, 2019. Operating and financing lease right-of-use assets and lease liabilities as of March 31, 2019 and January 1, 2019 (date of adoption of ASU 2016-02) are as follows:
______________________________________________________________ (1) At March 31, 2019, these assets are comprised of approximately 98% real estate related assets (which include land, buildings and racking) and 2% non-real estate related assets (which include warehouse equipment, vehicles, furniture and fixtures and computer hardware and software). (2) At March 31, 2019, these assets are comprised of approximately 66% real estate related assets and 34% non-real estate related assets. The components of the lease expense for the three months ended March 31, 2019 is as follows:
______________________________________________________________ (1) Of the $111,906 of operating lease cost incurred for the three months ended March 31, 2019, $108,601 is included within Cost of sales and $3,305 is included within Selling, general and administrative expenses. Operating lease cost includes variable lease costs of $25,489. We sublease certain real estate to third parties. The sublease income recognized for the three months ended March 31, 2019 is $3,047. Weighted average remaining lease terms and discount rates as of March 31, 2019 are as follows:
The estimated minimum future lease payments as of December 31, 2018, are as follows:
The estimated minimum future lease payments as of March 31, 2019, are as follows:
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As of March 31, 2019, we do not have any material operating or financing leases that are signed but have not yet commenced and we have certain leases with related parties which are not material to our consolidated financial statements. Other information: Supplemental cash flow information relating to our leases for the three months ended March 31, 2019 is as follows:
e. Stock-Based Compensation We record stock-based compensation expense, utilizing the straight-line method, for the cost of stock options, restricted stock units ("RSUs"), performance units ("PUs") and shares of stock issued under our employee stock purchase plan (together, "Employee Stock-Based Awards"). There have been no significant changes to our accounting policies, assumptions and valuation methodologies related to the accounting for our Employee Stock-Based Awards as disclosed in Note 2.n. to Notes to Consolidated Financial Statements included in our Annual Report. For our Employee Stock-Based Awards made on or after February 20, 2019, we have included the following retirement provision: Upon an employee’s retirement on or after attaining age 58, if the sum of (i) the award recipient’s age at retirement and (ii) the award recipient’s years of service with the company totals at least 70, the award recipient is entitled to continued vesting of any outstanding Employee Stock-Based Awards which include the 2019 Retirement Criteria subsequent to their retirement, provided that, for awards granted in the year of retirement, their retirement occurs on or after July 1st (the “2019 Retirement Criteria”). Accordingly, (i) grants of Employee Stock-Based Awards to an employee who has met the 2019 Retirement Criteria on or before the date of grant, or will meet the Retirement Criteria before July 1st of the year of the grant, will be expensed between the date of grant and July 1st of the grant year and (ii) grants of Employee Stock-Based Awards to employees who will meet the 2019 Retirement Criteria during the award’s normal vesting period will be expensed between the date of grant and the date upon which the award recipient meets the 2019 Retirement Criteria. Stock options and RSUs granted to recipients who meet the 2019 Retirement Criteria will continue vesting on the original vesting schedule, and the stock options will remain exercisable up to three years after retirement, or the original expiration date of the stock options, if earlier. PUs granted to recipients who meet the 2019 Retirement Criteria will continue to vest and be delivered in accordance with the original vesting schedule of the applicable PU award and remain subject to the same performance conditions. Stock-based compensation expense for Employee Stock-Based Awards for the three months ended March 31, 2019 and 2018 was $8,519 ($7,935 after tax or $0.03 per basic and diluted share) and $7,384 ($6,833 after tax or $0.02 per basic and diluted share), respectively, the substantial majority of which is included in Selling, general and administrative expenses in the accompanying Condensed Consolidated Statements of Operations. As of March 31, 2019, unrecognized compensation cost related to the unvested portion of our Employee Stock-Based Awards was $72,353 and is expected to be recognized over a weighted-average period of 2.2 years. Stock Options A summary of stock option activity for the three months ended March 31, 2019 is as follows:
Restricted Stock Units The fair value of RSUs vested during the three months ended March 31, 2019 and 2018 is as follows:
A summary of RSU activity for the three months ended March 31, 2019 is as follows:
Performance Units The fair value of earned PUs that vested during the three months ended March 31, 2019 and 2018 is as follows:
A summary of PU activity for the three months ended March 31, 2019 is as follows:
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As of March 31, 2019, we expected 100% achievement of the predefined revenue, return on invested capital and Adjusted EBITDA (as defined in Note 6) targets associated with the awards of PUs made in 2019, 2018 and 2017. f. Income (Loss) Per Share—Basic and Diluted Basic income (loss) per common share is calculated by dividing income (loss) by the weighted average number of common shares outstanding. The calculation of diluted income (loss) per share is consistent with that of basic income (loss) per share, but gives effect to all potential common shares (that is, securities such as stock options, RSUs or PUs) that were outstanding during the period, unless the effect is antidilutive. The calculation of basic and diluted income (loss) per share for the three months ended March 31, 2019 and 2018 is as follows:
_______________________________________________________________________________ (1) Columns may not foot due to rounding. g. Income Taxes We provide for income taxes during interim periods based on our estimate of the effective tax rate for the year. Our estimate of the effective tax rates for the years ending December 31, 2019 and 2018 reflect the impact of the U.S. tax reform legislation, commonly referred to as the Tax Cuts and Jobs Act (the “Tax Reform Legislation”). See Note 7 to Notes to Consolidated Financial Statements included in our Annual Report for additional information regarding the impact the Tax Reform Legislation had on us. Discrete items and changes in our estimate of the annual effective tax rate are recorded in the period they occur. Our effective tax rate is subject to variability in the future due to, among other items: (1) changes in the mix of income between our qualified REIT subsidiaries ("QRSs") and our domestic taxable REIT subsidiaries ("TRSs"), as well as among the jurisdictions in which we operate; (2) tax law changes; (3) volatility in foreign exchange gains and losses; (4) the timing of the establishment and reversal of tax reserves; and (5) our ability to utilize net operating losses that we generate. Our effective tax rates for the three months ended March 31, 2019 and 2018 is as follows:
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h. Fair Value Measurements Our financial assets or liabilities that are carried at fair value are required to be measured using inputs from the three levels of the fair value hierarchy. A financial asset or liability's classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The three levels of the fair value hierarchy are as follows: Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date. Level 2—Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). Level 3—Unobservable inputs that reflect our assumptions about the assumptions that market participants would use in pricing the asset or liability. The assets and liabilities carried at fair value measured on a recurring basis as of March 31, 2019 and December 31, 2018, respectively, are as follows:
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Disclosures are required in the financial statements for items measured at fair value on a non-recurring basis. There were no material items that are measured at fair value on a non-recurring basis at March 31, 2019 and December 31, 2018, other than those disclosed in Note 2.s. to Notes to Consolidated Financial Statements included in our Annual Report, those acquired in acquisitions that occurred during the three months ended March 31, 2019 and our investment in Makespace LLC (as disclosed in Note 9), all of which are based on Level 3 inputs. The fair value of our long-term debt, which was determined based on either Level 1 inputs or Level 3 inputs, is disclosed in Note 4. Long-term debt is measured at cost in our Condensed Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018. i. Accumulated Other Comprehensive Items, Net The changes in accumulated other comprehensive items, net for the three months ended March 31, 2019 and 2018 are as follows:
______________________________________________________________ (1) This amount includes foreign exchange (gains) losses of $(6,141) and $5,635 for the three months ended March 31, 2019 and 2018, respectively, related to the change in fair value of the portion of our Euro Notes (as defined and discussed more fully in Note 4) designated as a hedge of net investment of certain of our Euro denominated subsidiaries. For the three months ended March 31, 2019, we designated, on average, 271,146 Euros of our Euro Notes as a hedge of net investment of certain of our Euro denominated subsidiaries. For the three months ended March 31, 2018, we designated, on average, 164,244 Euros of our Euro Notes as a hedge of net investment of certain of our Euro denominated subsidiaries. As of March 31, 2019, cumulative net gains of $20,399 net of tax, are recorded in accumulated other comprehensive items, net associated with this net investment hedge. j. Other Expense (Income), Net Other expense (income), net for the three months ended March 31, 2019 and 2018 consists of the following:
The gain or loss on foreign currency transactions, calculated as the difference between the historical exchange rate and the exchange rate at the applicable measurement date, include gains or losses related to (i) borrowings in certain foreign currencies under our Revolving Credit Facility (as defined and discussed more fully in Note 4), (ii) our Euro Notes, (iii) certain foreign currency denominated intercompany obligations of our foreign subsidiaries to us and between our foreign subsidiaries, which are not considered permanently invested, and (iv) amounts that are paid or received on the net settlement amount from forward contracts (as more fully discussed in Note 2.h.). Other, net for the three months ended March 31, 2019 is primarily comprised of a gain on sale resulting from the Consumer Storage Transaction (as defined and discussed more fully in Note 9) of approximately $4,200. Other, net for the three months ended March 31, 2019 also includes the change in estimated fair value of the noncontrolling interests associated with our business in India, which are accounted for as mandatorily redeemable noncontrolling interests. k. New Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) ("ASU 2018-15"). ASU 2018-15 aligns the accounting for costs incurred to implement a cloud computing arrangement that is a service arrangement with the guidance on capitalizing costs associated with developing or obtaining internal-use software. We adopted ASU 2018-15 on January 1, 2019. ASU 2018-15 did not have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02. We adopted ASU 2016-02 on January 1, 2019 on a modified retrospective basis. See Note 2.d. for information regarding the impact of the adoption of ASU 2016-02 on our consolidated financial statements. |
Acquisitions |
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Acquisitions | We account for acquisitions using the acquisition method of accounting, and, accordingly, the assets and liabilities acquired are recorded at their estimated fair values and the results of operations for each acquisition have been included in our consolidated results from their respective acquisition dates. Acquisitions Completed During the Three Months Ended March 31, 2019 In order to enhance our existing operations in the United States, the United Kingdom and Switzerland and to expand our operations into Bulgaria, we completed the acquisition of four storage and records management companies and one art storage company for total cash consideration of approximately $31,900. Purchase Price Allocation A summary of the cumulative consideration paid and the preliminary allocation of the purchase price paid for all of our 2019 acquisitions through March 31, 2019 is as follows:
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(3) The goodwill associated with acquisitions is primarily attributable to the assembled workforce, expanded market opportunities and costs and other operating synergies anticipated upon the integration of the operations of us and the acquired businesses. See Note 6 to Notes to Consolidated Financial Statements included in our Annual Report for additional information regarding our allocations of the purchase price for acquisitions. The preliminary purchase price allocations that are not finalized as of March 31, 2019 primarily relate to the final assessment of the fair values of intangible assets and liabilities (primarily customer relationship intangible assets and data center lease-based intangible assets), property, plant and equipment (primarily building, building improvements, data center infrastructure and racking structures), right-of-use assets and liabilities associated with acquired operating leases, contingencies and income taxes (primarily deferred income taxes), primarily associated with the EvoSwitch Transaction (as defined in Note 6 to Notes to Consolidated Financial Statements included in our Annual Report), as well as other acquisitions we closed in 2019. As the valuation of certain assets and liabilities for purposes of purchase price allocations are preliminary in nature, they are subject to adjustment as additional information is obtained about the facts and circumstances regarding these assets and liabilities that existed at the acquisition date. Any adjustments to our estimates of purchase price allocation will be made in the periods in which the adjustments are determined and the cumulative effect of such adjustments will be calculated as if the adjustments had been completed as of the acquisition dates. Adjustments recorded during the three months ended March 31, 2019 were not material to our results from operations. Acquisition of IO Data Centers in 2018 On January 10, 2018, we completed the IODC Transaction. At the closing of the IODC Transaction, we paid approximately $1,347,000. In February 2019, we paid approximately $31,000 in additional purchase price associated with the execution of customer contracts from the closing through the one-year anniversary of the IODC Transaction, which was accrued at December 31, 2018. This amount, net of amortization, is reported as a third-party commissions asset as a component of Other within Other assets, net, in our Condensed Consolidated Balance Sheets at March 31, 2019 and December 31, 2018. The unaudited consolidated pro forma financial information (the "Pro Forma Financial Information") below summarizes the combined results of us and IODC on a pro forma basis as if the IODC Transaction had occurred on January 1, 2017. The Pro Forma Financial Information is presented for informational purposes and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place on January 1, 2017. The Pro Forma Financial Information, for the period presented, includes purchase accounting adjustments (including amortization expenses from acquired intangible assets and depreciation of acquired property, plant and equipment). We and IODC collectively incurred $28,064 of operating expenditures to complete the IODC Transaction (including advisory and professional fees). These operating expenditures have been reflected within the results of operations in the Pro Forma Financial Information as if they were incurred on January 1, 2017.
In addition to our acquisition of IODC, we completed certain other acquisitions during the first three months of 2019 and in fiscal year 2018. The Pro Forma Financial Information does not reflect these acquisitions due to the insignificant impact of these acquisitions on our consolidated results of operations. |
Debt |
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Debt | Long-term debt is as follows:
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See Note 4 to Notes to Consolidated Financial Statements included in our Annual Report for additional information regarding our Credit Agreement and our other long-term debt, including the direct obligors of each of our debt instruments as well as information regarding the fair value of our debt instruments (including the levels of the fair value hierarchy used to determine the fair value of our debt instruments). The levels of the fair value hierarchy used to determine the fair value of our debt as of March 31, 2019 are consistent with the levels of the fair value hierarchy used to determine the fair value of our debt as of December 31, 2018 (which are disclosed in our Annual Report). Additionally, see Note 5 to Notes to Consolidated Financial Statements included in our Annual Report for information regarding which of our consolidated subsidiaries guarantee certain of our debt instruments. There have been no material changes to our long-term debt since December 31, 2018. Cash Pooling As described in greater detail in Note 4 to Notes to Consolidated Financial Statements included in our Annual Report, certain of our subsidiaries participate in cash pooling arrangements (the “Cash Pools”) in order to help manage global liquidity requirements. We currently utilize two separate cash pools, one of which we utilize to manage global liquidity requirements for our QRSs (the "QRS Cash Pool") and the other for our TRSs (the "TRS Cash Pool"). The approximate amount of the net cash position for our QRS Cash Pool and the TRS Cash Pool and the approximate amount of the gross position and outstanding debit balances for each of these pools as of March 31, 2019 and December 31, 2018 are as follows:
The net cash position balances as of March 31, 2019 and December 31, 2018 are reflected as cash and cash equivalents in the Condensed Consolidated Balance Sheets. Debt Covenants The Credit Agreement, our indentures and other agreements governing our indebtedness contain certain restrictive financial and operating covenants, including covenants that restrict our ability to complete acquisitions, pay cash dividends, incur indebtedness, make investments, sell assets and take certain other corporate actions. The covenants do not contain a rating trigger. Therefore, a change in our debt rating would not trigger a default under the Credit Agreement, our indentures or other agreements governing our indebtedness. The Credit Agreement uses EBITDAR-based calculations as the primary measures of financial performance, including leverage and fixed charge coverage ratios. Our leverage and fixed charge coverage ratios under the Credit Agreement as of March 31, 2019 and December 31, 2018, as well as our leverage ratio under our indentures as of March 31, 2019 and December 31, 2018 are as follows:
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Noncompliance with these leverage and fixed charge coverage ratios would have a material adverse effect on our financial condition and liquidity. |
Selected Consolidated Financial Statements of Parent, Guarantors, Canada Company and Non-Guarantors |
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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 March 31, 2019 and December 31, 2018 and for the three months ended March 31, 2019 and 2018 and are prepared on the same basis as the consolidated financial statements. The Parent Notes, the CAD Notes, the GBP Notes, 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 Iron Mountain Canada Operations ULC ("Canada Company"), the GBP Notes, which were issued by Iron Mountain (UK) PLC ("IM UK"), and the 53/8% Notes, which were issued by Iron Mountain US Holdings, Inc., which is one of the Guarantors. Canada Company and IM UK do not guarantee the Parent Notes. The subsidiaries that do not guarantee the Parent Notes, the CAD Notes, the GBP Notes, and the 53/8% Notes 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 or a Non-Guarantor. If such a change occurs, the amount of investment in subsidiaries in the below Condensed Consolidated Balance Sheets and equity in the earnings (losses) of subsidiaries, net of tax in the below Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) with respect to the relevant Parent, Guarantors, Non-Guarantors and Eliminations columns also would change. CONDENSED CONSOLIDATED BALANCE SHEETS
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CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Continued)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Our six reportable operating segments as of December 31, 2018 are described in Note 9 to Notes to Consolidated Financial Statements included in our Annual Report and are as follows:
There have been no changes made to our reportable operating segments since December 31, 2018, other than the impact of the Consumer Storage Transaction (as defined in Note 9). Prior to the Consumer Storage Transaction, our consumer storage business was a component of our Corporate and Other Business Segment. The previously reported segment information has been restated to conform to the current presentation and reflects the changes to our reportable operating segments that occurred in fourth quarter of 2018 as described in Note 9 to Notes to Consolidated Financial Statements included in our Annual Report. The operations associated with acquisitions completed during the first three months of 2019 have been incorporated into our existing reportable operating segments. An analysis of our business segment information and reconciliation to the accompanying Condensed Consolidated Financial Statements is as follows:
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The accounting policies of the reportable operating segments are the same as those described in Note 2 and in Note 2 to Notes to Consolidated Financial Statements included in our Annual Report. Adjusted EBITDA for each segment is defined as income (loss) from continuing operations before interest expense, net, provision (benefit) for income taxes, depreciation and amortization, and also excludes certain items that we believe are not indicative of our core operating results, specifically: (i) (gain) loss on disposal/write-down of property, plant and equipment, net (including real estate); (ii) intangible impairments; (iii) other expense (income), net (which includes foreign currency transaction (gains) losses, net); and (iv) Significant Acquisition Costs (as defined below). Internally, we use Adjusted EBITDA as the basis for evaluating the performance of, and allocating resources to, our operating segments. A reconciliation of Adjusted EBITDA to income (loss) from continuing operations on a consolidated basis is as follows:
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Information as to our revenues by product and service lines by segment are as follows:
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Commitments and Contingencies |
3 Months Ended |
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Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | We are involved in litigation from time to time in the ordinary course of business. A portion of the defense and/or settlement costs associated with such litigation is covered by various commercial liability insurance policies purchased by us and, in limited cases, indemnification from third parties. Our policy is to establish reserves for loss contingencies when the losses are both probable and reasonably able to be estimated. We record legal costs associated with loss contingencies as expenses in the period in which they are incurred. There have been no material updates or changes to the matters disclosed in Note 10 to Notes to Consolidated Financial Statements included in our Annual Report, nor have there been any new material loss contingencies since December 31, 2018. We believe that the resolution of the matters disclosed in Note 10 to Notes to Consolidated Financial Statements included in our Annual Report will not have a material impact on our consolidated financial condition, results of operations or cash flows. We have estimated a reasonably possible range for all loss contingencies, including those disclosed in Note 10 to Notes to Consolidated Financial Statements included in our Annual Report, and believe it is reasonably possible that we could incur aggregate losses in addition to amounts currently accrued for all matters up to an additional $17,500 over the next several years, of which certain amounts would be covered by insurance or indemnity arrangements. |
Stockholders' Equity Matters |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Matters | Our board of directors has adopted a dividend policy under which we have paid, and in the future intend to pay, quarterly cash dividends on our common stock. The amount and timing of future dividends will continue to be subject to the approval of our board of directors, in its sole discretion, and to applicable legal requirements. In fiscal year 2018 and the first three months of 2019, our board of directors declared the following dividends:
At The Market (ATM) Equity Program As described in greater detail in Note 12 to Notes to Consolidated Financial Statements included in our Annual Report, we entered into a distribution agreement with a syndicate of 10 banks (the “Agents”) pursuant to which we may sell, from time to time, up to an aggregate sales price of $500,000 of our common stock through the Agents (the “At The Market (ATM) Equity Program”). There were no shares of common stock sold under the At The Market (ATM) Equity Program during the three months ended March 31, 2019. As of March 31, 2019, the remaining aggregate sale price of shares of our common stock available for distribution under the At The Market (ATM) Equity Program was approximately $431,200. |
Divestments |
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Mar. 31, 2019 | ||||
Discontinued Operations and Disposal Groups [Abstract] | ||||
Divestments | On March 19, 2019, we contributed our customer contracts and certain intellectual property and other assets used by us to operate our consumer storage business in the United States and Canada (the "IM Consumer Storage Assets") and approximately $20,000 in cash (gross of certain transaction expenses) (the "Cash Contribution") to a joint venture entity, Makespace LLC (the "Makespace JV"), established by us and Makespace Labs, Inc. ("Makespace"), a consumer storage services provider (the "Consumer Storage Transaction"). At the closing date of the Consumer Storage Transaction, the Makespace JV owned (i) the IM Consumer Storage Assets, (ii) the Cash Contribution and (iii) the customer contracts, intellectual property and certain other assets used by Makespace to operate its consumer storage business in the United States. As part of the Consumer Storage Transaction, we received an equity interest of approximately 34% in the Makespace JV (the "Makespace Investment"). In connection with the Consumer Storage Transaction and the Makespace Investment, we also entered into a storage and service agreement with the Makespace JV to provide certain storage and related services to the Makespace JV (see Note 11). We have concluded that the divestment of the IM Consumer Storage Assets in the Consumer Storage Transaction does not meet the criteria to be reported as a discontinued operation in our consolidated financial statements, as our decision to divest this business does not represent a strategic shift that will have a major effect on our operations and financial results. Accordingly, the revenues and expenses associated with this business are presented as a component of income (loss) from continuing operations in our Condensed Consolidated Statements of Operations for the three months ended March 31, 2019 and 2018, respectively, and the cash flows associated with this business are presented as a component of cash flows from continuing operations in our Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2019 and 2018, respectively, through the closing date of the Consumer Storage Transaction. As a result of the Consumer Storage Transaction, we recorded a gain on sale of approximately $4,200 to Other expense (income), net, in the first quarter of 2019, representing the excess of the fair value of the consideration received over the sum of (i) the carrying value of our consumer storage operations and (ii) the Cash Contribution. At the closing date of the Consumer Storage Transaction, the fair value of the Makespace Investment was approximately $27,500 and is presented as a component of Other within Other assets, net in our Condensed Consolidated Balance Sheet as of March 31, 2019. We account for the Makespace Investment as an equity method investment. |
Significant Acquisition Costs |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recall Costs | Significant Acquisition Costs included in the accompanying Condensed Consolidated Statements of Operations are as follows:
Significant Acquisition Costs included in the accompanying Condensed Consolidated Statements of Operations by segment are as follows:
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Related Party Transactions |
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Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | In connection with the Consumer Storage Transaction and the Makespace Investment (both as described more fully in Note 9), we also entered into a storage and service agreement with the Makespace JV to provide certain storage and related services to the Makespace JV (the "Makespace Agreement"). Revenues and expenses associated with the Makespace Agreement are presented as a component of our North American Records and Information Management Business segment. For the three months ended March 31, 2019, we recognized an immaterial amount of revenue associated with the Makespace Agreement. |
Summary of Significant Accounting Policies (Policies) |
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Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Lessee, Leases [Policy Text Block] | Leases We lease facilities for certain warehouses, data centers and office space. We also have land leases, including those on which certain facilities are located. The majority of our leased facilities are classified as operating leases that, on average, have initial lease terms of five to 10 years, with one or more lease renewal options to extend the lease term. Our lease renewal option terms generally range from one to five years. The exercise of the lease renewal option is at our sole discretion and may contain fixed rent, fair market value based rent or Consumer Price Index rent escalation clauses. We include option periods in the lease term when our failure to renew the lease would result in an economic disincentive, thereby making it reasonably certain that we will renew the lease. We recognize straight line rental expense over the life of the lease and any fair market value or Consumer Price Index rent escalations are recognized as variable lease expense in the period in which the obligation is incurred. In addition, we lease certain vehicles and equipment. Vehicle and equipment leases have lease terms ranging from one to seven years. The lease right-of-use assets and related lease liabilities are classified as either operating or financing. Lease right-of-use assets are calculated as the net present value of future payments plus any capitalized initial direct costs less any tenant improvements or lease incentives. Lease liabilities are calculated as the net present value of future payments. In calculating the present value of the lease payments, we will utilize the rate stated within the lease (in the limited circumstances when such rate is available) or, if no rate is explicitly stated, we have elected to utilize a rate that reflects our securitized incremental borrowing rate by geography for the lease term. In July 2018, the FASB issued ASU 2018-11, Leases - Targeted Improvements ("ASU 2018-11"). ASU 2018-11 provides a practical expedient which allows lessees to account for nonlease components (which include common area maintenance, taxes, and insurance) with the related lease component. Any variable nonlease components are not included within the lease right-of-use asset and lease liability on the Condensed Consolidated Balance Sheets, and instead, are reflected as an expense in the period incurred. We have elected to take this practical expedient upon adoption of ASU 2016-02. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include cash on hand and cash invested in highly liquid short-term securities, which have remaining maturities at the date of purchase of less than 90 days. Cash and cash equivalents are carried at cost, which approximates fair value. |
Revenue Recognition, Policy [Policy Text Block] | Revenues |
Goodwill and Other Intangible Assets | Finite-lived Intangible Assets and Liabilities Finite-lived intangible assets and liabilities are primarily comprised of customer relationship intangible assets, customer inducements and data center intangible assets and liabilities (which include data center in-place lease intangible assets, data center tenant relationship intangible assets, data center above-market in-place lease intangible assets and data center below-market in-place lease intangible assets). Since December 31, 2018, there have been no changes to our accounting policies related to the accounting for any of our finite-lived intangible assets and liabilities as disclosed in Note 2.i. to Notes to Consolidated Financial Statements included in our Annual Report. |
Stock-Based Compensation | For our Employee Stock-Based Awards made on or after February 20, 2019, we have included the following retirement provision: Upon an employee’s retirement on or after attaining age 58, if the sum of (i) the award recipient’s age at retirement and (ii) the award recipient’s years of service with the company totals at least 70, the award recipient is entitled to continued vesting of any outstanding Employee Stock-Based Awards which include the 2019 Retirement Criteria subsequent to their retirement, provided that, for awards granted in the year of retirement, their retirement occurs on or after July 1st (the “2019 Retirement Criteria”). Accordingly, (i) grants of Employee Stock-Based Awards to an employee who has met the 2019 Retirement Criteria on or before the date of grant, or will meet the Retirement Criteria before July 1st of the year of the grant, will be expensed between the date of grant and July 1st of the grant year and (ii) grants of Employee Stock-Based Awards to employees who will meet the 2019 Retirement Criteria during the award’s normal vesting period will be expensed between the date of grant and the date upon which the award recipient meets the 2019 Retirement Criteria. Stock options and RSUs granted to recipients who meet the 2019 Retirement Criteria will continue vesting on the original vesting schedule, and the stock options will remain exercisable up to three years after retirement, or the original expiration date of the stock options, if earlier. PUs granted to recipients who meet the 2019 Retirement Criteria will continue to vest and be delivered in accordance with the original vesting schedule of the applicable PU award and remain subject to the same performance conditions. Stock-Based Compensation We record stock-based compensation expense, utilizing the straight-line method, for the cost of stock options, restricted stock units ("RSUs"), performance units ("PUs") and shares of stock issued under our employee stock purchase plan (together, "Employee Stock-Based Awards"). |
Income (Loss) Per Share-Basic and Diluted | Income (Loss) Per Share—Basic and Diluted Basic income (loss) per common share is calculated by dividing income (loss) by the weighted average number of common shares outstanding. The calculation of diluted income (loss) per share is consistent with that of basic income (loss) per share, but gives effect to all potential common shares (that is, securities such as stock options, RSUs or PUs) that were outstanding during the period, unless the effect is antidilutive. |
Income Taxes | We provide for income taxes during interim periods based on our estimate of the effective tax rate for the year. Our estimate of the effective tax rates for the years ending December 31, 2019 and 2018 reflect the impact of the U.S. tax reform legislation, commonly referred to as the Tax Cuts and Jobs Act (the “Tax Reform Legislation”). See Note 7 to Notes to Consolidated Financial Statements included in our Annual Report for additional information regarding the impact the Tax Reform Legislation had on us. Discrete items and changes in our estimate of the annual effective tax rate are recorded in the period they occur. Our effective tax rate is subject to variability in the future due to, among other items: (1) changes in the mix of income between our qualified REIT subsidiaries ("QRSs") and our domestic taxable REIT subsidiaries ("TRSs"), as well as among the jurisdictions in which we operate; (2) tax law changes; (3) volatility in foreign exchange gains and losses; (4) the timing of the establishment and reversal of tax reserves; and (5) our ability to utilize net operating losses that we generate. |
Fair Value Measurements | Fair Value Measurements Our financial assets or liabilities that are carried at fair value are required to be measured using inputs from the three levels of the fair value hierarchy. A financial asset or liability's classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The three levels of the fair value hierarchy are as follows: Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date. Level 2—Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). Level 3—Unobservable inputs that reflect our assumptions about the assumptions that market participants would use in pricing the asset or liability. |
New Accounting Pronouncements | Data Center Lessor Considerations Our data center business features storage rental provided to customers at contractually specified rates over a fixed contractual period. Prior to January 1, 2019, our data center revenue contracts were accounted for in accordance with Accounting Standards Codification (“ASC”) No. 840, Leases ("ASC 840"). On January 1, 2019, we adopted ASU 2016-02, as described in more detail in Note 2.d. Beginning on January 1, 2019, our data center revenue contracts will be accounted for in accordance with ASU 2016-02. ASU 2016-02 provides a practical expedient which allows lessors to account for nonlease components (such as power and connectivity, in the case of our data center business) with the related lease component if both the timing and pattern of transfer are the same for nonlease components and the lease component, and the lease component would be classified as an operating lease. The single combined component is accounted for under ASU 2016-02 if the lease component is the predominant component and is accounted for under ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), if the nonlease components are the predominant components. New Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) ("ASU 2018-15"). ASU 2018-15 aligns the accounting for costs incurred to implement a cloud computing arrangement that is a service arrangement with the guidance on capitalizing costs associated with developing or obtaining internal-use software. We adopted ASU 2018-15 on January 1, 2019. ASU 2018-15 did not have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02. We adopted ASU 2016-02 on January 1, 2019 on a modified retrospective basis. See Note 2.d. for information regarding the impact of the adoption of ASU 2016-02 on our consolidated financial statements. Change in Presentation Subsequent to our conversion to a REIT, we have historically classified gains on sale of real estate, net of tax, as a separate line on our consolidated statements of operations and excluded such amounts from our reported operating income. We presented such amounts net of tax as these gains were presented below the provision (benefit) for income taxes on our consolidated statements of operations. Commencing with the first quarter of 2019, we will present gains on sale of real estate as a component of operating income in the line item loss (gain) on disposal/write down of property, plant and equipment, net. Such amounts will be presented gross of tax with any tax impact presented within provision (benefit) for income taxes. All prior periods will be conformed to this presentation going forward. No gains on the sale of real estate were recognized during the three months ended March 31, 2019 or 2018. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Our effective tax rates for the three months ended March 31, 2019 and 2018 is as follows:
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Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Deferred revenue liabilities are reflected as follows in our Condensed Consolidated Balance Sheets:
The costs of the initial intake of customer records into physical storage ("Intake Costs") and capitalized commissions asset (collectively, "Contract Fulfillment Costs") as of March 31, 2019 and December 31, 2018 are as follows:
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Schedule of amortization expense associated with commissions asset and Intake Costs | Amortization expense associated with the Intake Costs asset and capitalized commissions asset for the three months ended March 31, 2019 and 2018 are as follows:
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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 three months ended March 31, 2019 are as follows:
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Components of amortizable intangible assets | The other finite-lived intangible assets as of March 31, 2019 and December 31, 2018 are as follows:
The gross carrying amount and accumulated amortization of our finite-lived intangible assets as of March 31, 2019 and December 31, 2018 are as follows:
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Schedule of amortization expenses | Amortization expense associated with finite-lived intangible assets, revenue reduction associated with the amortization of customer inducements and net revenue reduction associated with the amortization of data center above-market leases and data center below-market leases for the three months ended March 31, 2019 and 2018 are as follows:
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Operating and financing lease right-of-use assets and lease liabilities | Operating and financing lease right-of-use assets and lease liabilities as of March 31, 2019 and January 1, 2019 (date of adoption of ASU 2016-02) are as follows:
______________________________________________________________ (1) At March 31, 2019, these assets are comprised of approximately 98% real estate related assets (which include land, buildings and racking) and 2% non-real estate related assets (which include warehouse equipment, vehicles, furniture and fixtures and computer hardware and software). (2) At March 31, 2019, these assets are comprised of approximately 66% real estate related assets and 34% non-real estate related assets. |
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Lease, Cost [Table Text Block] | Supplemental cash flow information relating to our leases for the three months ended March 31, 2019 is as follows:
Weighted average remaining lease terms and discount rates as of March 31, 2019 are as follows:
The components of the lease expense for the three months ended March 31, 2019 is as follows:
______________________________________________________________ (1) Of the $111,906 of operating lease cost incurred for the three months ended March 31, 2019, $108,601 is included within Cost of sales and $3,305 is included within Selling, general and administrative expenses. Operating lease cost includes variable lease costs of $25,489. |
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Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | The estimated minimum future lease payments as of December 31, 2018, are as follows:
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Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The estimated minimum future lease payments as of December 31, 2018, are as follows:
The estimated minimum future lease payments as of March 31, 2019, are as follows:
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Finance Lease, Liability, Maturity [Table Text Block] | The estimated minimum future lease payments as of March 31, 2019, are as follows:
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Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The estimated minimum future lease payments as of March 31, 2019, are as follows:
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Stock-based compensation expense for Employee Stock-Based Awards related to continuing operations | . |
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Summary of stock option activity | A summary of stock option activity for the three months ended March 31, 2019 is as follows:
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Summary of restricted stock and RSU activity | The fair value of RSUs vested during the three months ended March 31, 2019 and 2018 is as follows:
A summary of RSU activity for the three months ended March 31, 2019 is as follows:
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Schedule of performance units | The fair value of earned PUs that vested during the three months ended March 31, 2019 and 2018 is as follows:
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Summary of Performance Unit (PU) activity | A summary of PU activity for the three months ended March 31, 2019 is as follows:
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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 months ended March 31, 2019 and 2018 is as follows:
_______________________________________________________________________________ (1) Columns may not foot due to rounding. |
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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 March 31, 2019 and December 31, 2018, respectively, are as follows:
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Schedule of changes in accumulated other comprehensive items, net | The changes in accumulated other comprehensive items, net for the three months ended March 31, 2019 and 2018 are as follows:
______________________________________________________________ (1) This amount includes foreign exchange (gains) losses of $(6,141) and $5,635 for the three months ended March 31, 2019 and 2018, respectively, related to the change in fair value of the portion of our Euro Notes (as defined and discussed more fully in Note 4) designated as a hedge of net investment of certain of our Euro denominated subsidiaries. For the three months ended March 31, 2019, we designated, on average, 271,146 Euros of our Euro Notes as a hedge of net investment of certain of our Euro denominated subsidiaries. For the three months ended March 31, 2018, we designated, on average, 164,244 Euros of our Euro Notes as a hedge of net investment of certain of our Euro denominated subsidiaries. As of March 31, 2019, cumulative net gains of $20,399 net of tax, are recorded in accumulated other comprehensive items, net associated with this net investment hedge. |
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Other expense (income), net | Other expense (income), net for the three months ended March 31, 2019 and 2018 consists of the following:
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Acquisitions (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition, Pro Forma Information |
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | A summary of the cumulative consideration paid and the preliminary allocation of the purchase price paid for all of our 2019 acquisitions through March 31, 2019 is as follows:
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(3) The goodwill associated with acquisitions is primarily attributable to the assembled workforce, expanded market opportunities and costs and other operating synergies anticipated upon the integration of the operations of us and the acquired businesses. |
Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Net Cash Position In Cash Pool Agreements [Table Text Block] | The approximate amount of the net cash position for our QRS Cash Pool and the TRS Cash Pool and the approximate amount of the gross position and outstanding debit balances for each of these pools as of March 31, 2019 and December 31, 2018 are as follows:
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Schedule of carrying amount and fair value of long-term debt instruments | Long-term debt is as follows:
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Schedule of Leverage and Fixed Charge Ratios | Our leverage and fixed charge coverage ratios under the Credit Agreement as of March 31, 2019 and December 31, 2018, as well as our leverage ratio under our indentures as of March 31, 2019 and December 31, 2018 are as follows:
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Selected Consolidated Financial Statements of Parent, Guarantors, Canada Company and Non-Guarantors (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | CONDENSED CONSOLIDATED BALANCE SHEETS
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CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
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Schedule of selected consolidated Income statements of Parent, Guarantors, Canada Company and Non-Guarantors | CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Continued)
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Schedule of selected consolidated Comprehensive Income statements of Parent, Guarantors, Canada Company and Non-Guarantors | CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Continued)
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Schedule of selected consolidated cash flow statements of Parent, Guarantors, Canada Company and Non-Guarantors | CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
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Segment Information (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of analysis of business segment information and reconciliation | An analysis of our business segment information and reconciliation to the accompanying Condensed Consolidated Financial Statements is as follows:
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Schedule of reconciliation of Adjusted EBITDA to income from continuing operations | A reconciliation of Adjusted EBITDA to income (loss) from continuing operations on a consolidated basis is as follows:
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Revenue from External Customers by Products and Services [Table Text Block] | Information as to our revenues by product and service lines by segment are as follows:
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Stockholders' Equity Matters (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of dividend declared and payments | In fiscal year 2018 and the first three months of 2019, our board of directors declared the following dividends:
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Significant Acquisition Costs (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition costs Included in Statement of Operations | Significant Acquisition Costs included in the accompanying Condensed Consolidated Statements of Operations by segment are as follows:
Significant Acquisition Costs included in the accompanying Condensed Consolidated Statements of Operations are as follows:
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Restructuring and Related Costs [Table Text Block] |
|
Summary of Significant Accounting Policies - Cash and Cash Equivalents and Foreign Currency (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Cash and Cash Equivalents and Restricted Cash [Abstract] | ||
Restricted cash | $ 15,250 | $ 15,141 |
Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets and Liabilities - Schedule Of Other Finite-Lived Intangile Assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Finite-Lived Intangible Assets | ||
Customer relationships, customer inducements and data center lease-based intangibles | $ 1,495,338 | $ 1,506,522 |
Third-party commissions asset and other finite-lived intangible assets | ||
Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Assets, Gross | 20,290 | 20,310 |
Finite-Lived Intangible Assets, Accumulated Amortization | (15,794) | (14,798) |
Customer relationships, customer inducements and data center lease-based intangibles | $ 4,496 | $ 5,512 |
Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Finite-Lived Intangible Assets | ||
Amortization of Intangible Assets | $ 47,872 | $ 47,146 |
Customer relationship and customer inducement intangible assets | ||
Finite-Lived Intangible Assets | ||
Amortization of Intangible Assets | 27,881 | 28,806 |
Leases Acquired In Place and Tenant Relationships [Member] | ||
Finite-Lived Intangible Assets | ||
Amortization of Intangible Assets | 12,609 | 10,838 |
Third-party commissions asset and other finite-lived intangible assets | ||
Finite-Lived Intangible Assets | ||
Amortization of Intangible Assets | 757 | 1,185 |
Customer inducements | ||
Finite-Lived Intangible Assets | ||
Amortization of Intangible Assets | 2,740 | 2,585 |
Data Center Above and Below Market Leases [Member] | ||
Finite-Lived Intangible Assets | ||
Amortization of Intangible Assets | $ 905 | $ 1,079 |
Summary of Significant Accounting Policies - Revenue - Contract Fulfillment Assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Capitalized commissions asset | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Carrying Amount | $ 27,562 | $ 23,787 |
Accumulated Amortization | (24,923) | (34,637) |
Gross Carrying Amount | 52,485 | 58,424 |
Intake Costs asset | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Carrying Amount | 15,114 | 15,244 |
Accumulated Amortization | (21,041) | (24,504) |
Gross Carrying Amount | $ 36,155 | $ 39,748 |
Summary of Significant Accounting Policies - Revenue - Amortization Expense Associated with Commissions Asset and Intake Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Capitalized commissions asset | ||
Capitalized Contract Cost [Line Items] | ||
Amortization expense | $ 3,946 | $ 3,587 |
Intake Costs asset | ||
Capitalized Contract Cost [Line Items] | ||
Amortization expense | $ 2,679 | $ 2,730 |
Summary of Significant Accounting Policies - Revenue - Summary of Deferred Revenue Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Deferred revenue | $ 266,314 | $ 264,823 |
Other Long-term Liabilities | 127,127 | 111,331 |
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Deferred revenue | 266,314 | 264,823 |
Other Long-term Liabilities | $ 25,625 | $ 26,401 |
Summary of Significant Accounting Policies - Revenue - Summary of Condensed Consolidated Statements of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenues | $ 1,053,863 | $ 1,042,458 |
Operating Income | 158,675 | 164,559 |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 30,476 | 45,614 |
Income from Continuing Operations | $ 41,029 | $ 46,782 |
Income (Loss) from continuing operations (in dollars per share) | $ 0.10 | $ 0.16 |
Income (Loss) from continuing operations (in dollars per share) | $ 0.10 | $ 0.16 |
Summary of Significant Accounting Policies - Leases - Supplemental Balance Sheet (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Jan. 01, 2019 |
---|---|---|
Accounting Policies [Abstract] | ||
Operating Lease, Right-Of-Use Asset, Non-Real Estate Assets, Percent | 2.00% | |
Operating lease right-of use assets | $ 1,791,536 | $ 1,825,721 |
Financing lease right-of-use assets, net of accumulated depreciation | 351,750 | 361,078 |
Total | 2,143,286 | 2,186,799 |
Operating lease liabilities | 206,286 | 209,911 |
Financing lease liabilities | 51,222 | 50,437 |
Total current lease liabilities | 257,508 | 260,348 |
Operating lease liabilities | 1,656,659 | 1,685,771 |
Financing lease liabilities | 338,728 | 350,263 |
Total long-term lease liabilities | 1,995,387 | 2,036,034 |
Total | $ 2,252,895 | $ 2,296,382 |
Summary of Significant Accounting Policies - Leases - Costs (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | $ 111,906 |
Depreciation of financing lease right-of-use assets | 16,329 |
Interest expense for financing lease liabilities | 6,142 |
Total financing lease cost | 22,471 |
Variable lease costs | $ 25,489 |
Operating leases, remaining lease term | 11 years 1 month 6 days |
Finance leases, remaining lease term | 11 years |
Operating leases, discount rate | 7.10% |
Financing leases, discount rate | 5.70% |
Cost of Sales | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | $ 108,601 |
Selling, General and Administrative Expenses | |
Lessee, Lease, Description [Line Items] | |
Operating lease cost | $ 3,305 |
Summary of Significant Accounting Policies - Leases - Supplemental Cash Flows (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Accounting Policies [Abstract] | |
Operating cash flows used in operating leases | $ 83,676 |
Financing cash flows used in financing leases | 16,675 |
Operating lease modifications and reassessments | 1,842 |
New operating leases (including acquisitions) | 21,535 |
Financing lease modifications and reassessments | 0 |
New financing leases | $ 7,523 |
Acquisitions - Narrative (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Jan. 10, 2018
USD ($)
|
Feb. 28, 2019
USD ($)
|
Mar. 31, 2019
USD ($)
company
|
|
Storage and Data Management Company [Member] | |||
Business Acquisition [Line Items] | |||
Number of Businesses Acquired | company | 4 | ||
Art Storage Company [Member] | |||
Business Acquisition [Line Items] | |||
Number of Businesses Acquired | company | 1 | ||
2019 Acquisitions | |||
Business Acquisition [Line Items] | |||
Cash consideration | $ 31,900 | ||
Consideration transferred | 35,240 | ||
IO Data Center LLC [Member] | |||
Business Acquisition [Line Items] | |||
Consideration transferred | $ 1,347,000 | $ 31,000 | |
Business combination separately recognized transactions expenses and losses recognized, acquisition costs incurred to date | $ 28,064 |
Acquisitions - Pro Forma Financial Information (Details) $ / shares in Units, $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2018
USD ($)
$ / shares
| |
Business Combinations [Abstract] | |
Total Revenues | $ | $ 1,045,948 |
Income from Continuing Operations | $ | $ 55,566 |
Per Share Income from Continuing Operations - Basic | $ / shares | $ 0.20 |
Per Share Income from Continuing Operations - Diluted | $ / shares | $ 0.19 |
Debt Cash Pool (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
QRS Cash Pool [Member] | ||
Debt Instrument [Line Items] | ||
Cash pool agreement, gross cash position | $ 271,400 | $ 300,800 |
Cash pool agreement, outstanding borrowings | (269,400) | (298,800) |
Cash pool agreement, net cash position | 2,000 | 2,000 |
TRS Cash Pool [Member] | ||
Debt Instrument [Line Items] | ||
Cash pool agreement, gross cash position | 281,100 | 281,500 |
Cash pool agreement, outstanding borrowings | (277,900) | (279,300) |
Cash pool agreement, net cash position | $ 3,200 | $ 2,200 |
Segment Information - Additional Information (Details) |
12 Months Ended |
---|---|
Dec. 31, 2018
segment
| |
Segment Reporting [Abstract] | |
Number of operating segments | 6 |
Segment Information - Reconciliation to Income from Continuing Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Reconciliation of Adjusted EBITDA to income from continuing operations | ||
Adjusted EBITDA | $ 324,506 | $ 343,015 |
Provision (Benefit) for Income Taxes | 10,553 | 1,168 |
Less: Depreciation and Amortization | 162,483 | 160,578 |
Gain (Loss) on Sale of Assets and Asset Impairment Charges | 602 | (1,130) |
Income (Loss) from Continuing Operations | 30,476 | 45,614 |
Interest Expense (Income), Net | 102,436 | 97,626 |
Other Expense (Income), Net | 15,210 | 20,151 |
Recall Transaction and IODC Transaction [Member] | ||
Reconciliation of Adjusted EBITDA to income from continuing operations | ||
Total Significant Acquisition Costs | $ 2,746 | $ 19,008 |
Commitments and Contingencies (Details) $ in Thousands |
Mar. 31, 2019
USD ($)
|
---|---|
Insurance Settlement | |
Commitments and Contingencies | |
Reasonably possible additional losses | $ 17,500 |
Stockholders' Equity Matters - Dividends Declared (Details) |
1 Months Ended | 3 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2019
USD ($)
|
Feb. 07, 2019
$ / shares
|
Oct. 02, 2018
USD ($)
|
Jul. 24, 2018
$ / shares
|
Jul. 02, 2018
USD ($)
|
May 24, 2018
$ / shares
|
Apr. 02, 2018
USD ($)
|
Feb. 14, 2018
$ / shares
|
Dec. 15, 2015
USD ($)
|
Oct. 29, 2015
$ / shares
|
Oct. 31, 2017
USD ($)
|
Mar. 31, 2019
USD ($)
$ / shares
shares
|
Mar. 31, 2018
USD ($)
|
Dec. 31, 2018
$ / shares
shares
|
|
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||
Dividends Declared per Common Share (in dollars per share) | $ / shares | $ 0.6110 | $ 0.5875 | $ 0.5875 | $ 0.5875 | $ 0.6110 | |||||||||
Dividends, Common Stock | $ 168,148,000 | $ 168,078,000 | $ 167,969,000 | $ 174,935,000 | $ 176,460,000 | $ 169,044,000 | ||||||||
Common stock, issued shares | shares | 286,829,854 | 286,321,009 | ||||||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | ||||||||||||
Subsequent Event | ||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||
Dividends, Common Stock | $ 175,242,000 | |||||||||||||
At The Market (ATM) Equity Program [Member] | ||||||||||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||||||||||
Sale of Stock, Authorized Amount | $ 500,000,000 | |||||||||||||
Sale of Stock, Remaining Aggregate Sale Price Of Stock Available For Distribution | $ 431,200,000 | |||||||||||||
Number Of Banks | 10 | |||||||||||||
Sale of Stock, Number of Shares Issued in Transaction | shares | 0 |
Significant Acquisition Costs Significant Acquisition Costs Included in Statements of Operations (Details) - Recall Transaction and IODC Transaction [Member] - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Business Combination, Separately Recognized Transactions [Line Items] | ||
Total Significant Acquisition Costs | $ 2,746 | $ 19,008 |
Cost of sales (excluding depreciation and amortization) | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Total Significant Acquisition Costs | 898 | 296 |
Selling, general and administrative expenses | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Total Significant Acquisition Costs | $ 1,848 | $ 18,712 |
Label | Element | Value |
---|---|---|
Accounting Standards Update 2014-09 [Member] | Accumulated Distributions in Excess of Net Income [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (29,461,000) |
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