Segment Information

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

Our three reportable operating segments as of December 31, 2020 are described in Note 10 to Notes to Consolidated Financial Statements included in our Annual Report and are as follows:

•Global Records and Information Management (“Global RIM”) Business

•Global Data Center Business

•Corporate and Other Business

There have been no changes to these reportable operating segments during the first three months of 2021.

An analysis of our business segment information and reconciliation to the accompanying Condensed Consolidated Financial Statements is as follows:

	THREE MONTHS ENDED MARCH 31,
	2021		2020
Global RIM Business
Total Revenues	$	967,294	$	956,419
Adjusted EBITDA	408,562		391,972
Global Data Center Business
Total Revenues	$	71,108	$	67,357
Adjusted EBITDA	30,432		30,895
Corporate and Other Business
Total Revenues	$	43,638	$	44,955
Adjusted EBITDA	(58,429)		(56,868)
Total Consolidated
Total Revenues	$	1,082,040	$	1,068,731
Adjusted EBITDA	380,565		365,999

During the fourth quarter of 2020, we changed our definition of Adjusted EBITDA to (a) exclude stock-based compensation expense and (b) include our share of Adjusted EBITDA from our unconsolidated joint ventures. All prior periods have been recast to conform to these changes. We now define Adjusted EBITDA for each segment as net income (loss) before interest expense, net, provision (benefit) for income taxes, depreciation and amortization (inclusive of our share of Adjusted EBITDA from our unconsolidated joint ventures), and excluding certain items we do not believe to be indicative of our core operating results, specifically:

EXCLUDED
•Restructuring Charges	•Other expense (income), net
•Intangible impairments	•Stock-based compensation expense
•(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate)	•COVID-19 Costs(1)

(1) Costs that are incremental and directly attributable to the COVID-19 pandemic which are not expected to recur once the pandemic ends ("COVID-19 Costs"). These costs include the purchase of personal protective equipment for our employees and incremental cleaning costs of our facilities, among other direct costs.

Internally, we use Adjusted EBITDA as the basis for evaluating the performance of, and allocated resources to, our operating segments.

A reconciliation of Net Income (Loss) to Adjusted EBITDA on a consolidated basis for the three months ended March 31, 2021 and 2020 is as follows:

	THREE MONTHS ENDED MARCH 31,
	2021		2020
Net Income (Loss)	$	46,631	$	64,892
Add/(Deduct):
Interest expense, net	104,422		105,649
Provision (benefit) for income taxes	14,640		9,687
Depreciation and amortization	165,642		162,584
Restructuring Charges	39,811		41,046
Intangible impairments	—		23,000
(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate)	(4,451)		(1,055)
Other expense (income), net, excluding our share of losses (gains) from our unconsolidated joint ventures	2,121		(45,031)
Stock-based compensation expense	10,733		5,111
Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures	1,016		116
Adjusted EBITDA	$	380,565	$	365,999

Information as to our revenues by product and service lines by segment for the three months ended March 31, 2021 and 2020 are as follows:

	THREE MONTHS ENDED MARCH 31,
	2021		2020
Global RIM Business
Records Management(1)	$	752,123	$	727,616
Data Management(1)	118,414		125,898
Information Destruction(1)(2)	96,757		102,905
Data Center	—		—
Global Data Center Business
Records Management(1)	$	—	$	—
Data Management(1)	—		—
Information Destruction(1)(2)	—		—
Data Center	71,108		67,357
Corporate and Other Business
Records Management(1)	$	26,967	$	28,876
Data Management(1)	16,671		16,079
Information Destruction(1)(2)	—		—
Data Center	—		—
Total Consolidated
Records Management(1)	$	779,090	$	756,492
Data Management(1)	135,085		141,977
Information Destruction(1)(2)	96,757		102,905
Data Center	71,108		67,357

(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.