XML 36 R22.htm IDEA: XBRL DOCUMENT v3.19.1
Summary of Significant Accounting Policies (Tables)
 3 Months Ended
Mar. 31, 2019
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:
 
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.
Schedule of New Accounting Pronouncements and Changes in Accounting Principles
Deferred revenue liabilities are reflected as follows in our Condensed Consolidated Balance Sheets:
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

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:
 
 
 
 
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
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:
 
Three Months Ended
March 31,
 
2019
 
2018
Intake Costs asset
$
2,679

 
$
2,730

Capitalized commissions asset
3,946

 
3,587
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:
 
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.
Components of amortizable intangible assets
The other finite-lived intangible assets as of March 31, 2019 and December 31, 2018 are as follows:
 
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

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:
 
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.
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:
 
 
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
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:
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

______________________________________________________________
(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.
Lease, Cost [Table Text Block]
Supplemental cash flow information relating to our leases for the three months ended March 31, 2019 is as follows:
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

Weighted average remaining lease terms and discount rates as of March 31, 2019 are as follows:
Remaining Lease Term:
 
 
Operating leases
 
11.1 Years
Financing leases
 
11.0 Years
 Discount Rate:
 
 
Operating leases
 
7.1%
Financing leases
 
5.7%
The components of the lease expense for the three months ended March 31, 2019 is as follows:
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

______________________________________________________________
(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.
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:
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
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:
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



The estimated minimum future lease payments as of March 31, 2019, are as follows:
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.
Finance Lease, Liability, Maturity [Table Text Block]
The estimated minimum future lease payments as of March 31, 2019, are as follows:
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.
Lessee, Operating Lease, Liability, Maturity [Table Text Block]
The estimated minimum future lease payments as of March 31, 2019, are as follows:
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.
Stock-based compensation expense for Employee Stock-Based Awards related to continuing operations
.
Summary of stock option activity
A summary of stock option activity for the three months ended March 31, 2019 is as follows:
 
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
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:
 
Three Months Ended
March 31,
 
2019
 
2018
Fair value of RSUs vested
$
15,333

 
$
15,330

A summary of RSU activity for the three months ended March 31, 2019 is as follows:
 
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
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:
 
Three Months Ended
March 31,
 
2019
 
2018
Fair value of earned PUs that vested
$
6,503

 
$
3,033
Summary of Performance Unit (PU) activity
A summary of PU activity for the three months ended March 31, 2019 is as follows:
 
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.
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:
 
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

_______________________________________________________________________________

(1) Columns may not foot due to rounding.
Assets and liabilities carried at fair value measured on a recurring basis
The assets and liabilities carried at fair value measured on a recurring basis as of March 31, 2019 and December 31, 2018, respectively, are as follows:
 
 
 
 
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.
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:
 
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
)
______________________________________________________________
(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.
Other expense (income), net
Other expense (income), net for the three months ended March 31, 2019 and 2018 consists of the following:
 
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