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.

We maintain an allowance for doubtful accounts and a credit memo reserve for estimated losses resulting from the potential inability of our customers to make required payments and potential disputes regarding billing and service issues. Rollforward of allowance for doubtful accounts and credit memo reserves for the six months ended June 30, 2021 is as follows:



Balance as of December 31, 2020	$	56,981
Credit memos charged to revenue	21,699
Allowance for bad debts charged to expense	13,442
Deductions and other(1)	(35,145)
Balance as of June 30, 2021	$	56,977

We lease facilities for certain warehouses, data centers and office space. We also have land leases, including those on which certain facilities are located. Operating and financing lease right-of-use assets and lease liabilities as of June 30, 2021 and December 31, 2020 are as follows:


DESCRIPTION	JUNE 30, 2021		DECEMBER 31, 2020
Assets:
Operating lease right-of-use assets	$	2,342,197	$	2,196,502
Financing lease right-of-use assets, net of accumulated depreciation(1)	297,052		310,534
Liabilities:
Current
Operating lease liabilities	$	263,784	$	250,239
Financing lease liabilities(1)	43,728		43,149
Long-term
Operating lease liabilities	2,186,625		2,044,598
Financing lease liabilities(1)	308,895		323,162

(1)Financing lease right-of-use assets, current financing lease liabilities and long-term financing lease liabilities are included within Property, Plant and Equipment, Net, Current portion of long-term debt and Long-term Debt, net of current portion, respectively, within our Condensed Consolidated Balance Sheets.


	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
DESCRIPTION	2021		2020		2021		2020
Operating lease cost(1)	$	135,086	$	119,277	$	267,761	$	242,566
Financing lease cost:
Depreciation of financing lease right-of-use assets	$	12,408	$	12,567	$	25,056	$	25,522
Interest expense for financing lease liabilities	4,910		4,929		9,885		9,773

(1)Operating lease cost, the majority of which is included in Cost of sales, includes variable lease costs of $29,219 and $57,587 for the three and six months ended June 30, 2021, respectively, and $26,996 and $54,801 for the three and six months ended June 30, 2020, respectively.


	SIX MONTHS ENDED JUNE 30,
CASH PAID FOR AMOUNTS INCLUDED IN MEASUREMENT OF LEASE LIABILITIES:	2021		2020
Operating cash flows used in operating leases	$	192,039	$	178,011

Operating cash flows used in financing leases (interest)	9,885		9,773
Financing cash flows used in financing leases	23,656		23,953

NON-CASH ITEMS:
Operating lease modifications and reassessments	$	63,047	$	76,764
New operating leases (including acquisitions and sale-leaseback transactions)	210,881		123,860


	GLOBAL RIM BUSINESS		GLOBAL DATA CENTER BUSINESS		CORPORATE AND OTHER BUSINESS		TOTAL CONSOLIDATED
Goodwill balance, net of accumulated amortization as of December 31, 2020	$	4,024,182	$	436,987	$	96,440	$	4,557,609

Non-tax deductible goodwill acquired during the period	6,108		—		8,807		14,915
Goodwill allocated to IPM Divestment (as defined and described in Note 4)	—		—		(46,105)		(46,105)
Fair value and other adjustments	(6,091)		—		(1,268)		(7,359)
Currency effects	(5,598)		(4,573)		(135)		(10,306)
Goodwill balance, net accumulated amortization as of June 30, 2021	$	4,018,601	$	432,414	$	57,739	$	4,508,754

Accumulated goodwill impairment balance as of June 30, 2021	$	132,409	$	—	$	26,011	$	158,420

In April 2021, we closed on an agreement to form a joint venture (the "Web Werks JV") with the shareholders of Web Werks India Private Limited ("Web Werks"), a colocation data center provider in India. In connection with the formation of the Web Werks JV, we made an initial investment of approximately 3,750,000 Indian rupees (or approximately $50,100, based upon the exchange rate between the United States dollar and Indian rupee as of the closing date of the initial investment) in exchange for a noncontrolling interest in the form of convertible preference shares in the Web Werks JV (the “Initial Web Werks JV Investment”). These shares are convertible into a to-be-determined amount of common shares based upon the achievement of EBITDA targets for the Web Werks JV's fiscal year ending March 31, 2022.

Under the terms of the Web Werks JV shareholder agreement, we are required to make additional investments over a period ending May 2023 totaling approximately 7,500,000 Indian rupees (or approximately $100,000, based upon the current exchange rate between the United States dollar and Indian rupee).

The following joint ventures are accounted for as equity method investments and are presented as a component of Other within Other assets, net in our Condensed Consolidated Balance Sheets. The carrying values and equity interests in our joint ventures at June 30, 2021 and December 31, 2020 are as follows:


	JUNE 30, 2021				DECEMBER 31, 2020
	CARRYING VALUE		EQUITY INTEREST		CARRYING VALUE		EQUITY INTEREST
Web Werks JV	$	50,135	38	%	$	—	—	%
Joint venture with AGC Equity Partners (the “Frankfurt JV”)	26,387		20	%	26,500		20	%
Joint venture with MakeSpace Labs, Inc. (the “MakeSpace JV”)	24,069		45	%	16,924		39	%


			FAIR VALUE MEASUREMENTS AT JUNE 30, 2021 USING
DESCRIPTION	TOTAL CARRYING VALUE AT JUNE 30, 2021		QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Money Market Funds	$	160,100	$	—	$	160,100	$	—
Time Deposits	3,130		—		3,130		—
Trading Securities	12,672		12,431		241		—

Derivative Liabilities	28,863		—		28,863		—


			FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2020 USING
DESCRIPTION	TOTAL CARRYING VALUE AT DECEMBER 31, 2020		QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Money Market Funds	$	62,657	$	—	$	62,657	$	—
Time Deposits	2,121		—		2,121		—
Trading Securities	10,892		10,636		256		—
Derivative Liabilities	49,703		—		49,703		—

There were no material items that are measured at fair value on a non-recurring basis at June 30, 2021 and December 31, 2020, other than (i) those disclosed in Note 2.o. to Notes to Consolidated Financial Statements included in our Annual Report, (ii) our investment in the Web Werks JV, as described in Note 2.e., and (iii) those acquired in acquisitions that occurred during the six months ended June 30, 2021, as described in Note 3, all of which are based on Level 3 inputs.

In 2018, one of the noncontrolling interest shareholders in one of our foreign consolidated subsidiaries exercised its option to put its ownership interest back to us. Upon the exercise of the put option, this noncontrolling interest became mandatorily redeemable by us, and, therefore, was accounted for as a liability rather than a component of redeemable noncontrolling interests. In May 2021, we agreed to final settlement terms and paid the put option price for the noncontrolling interest shares. We remain in dispute with this former shareholder with respect to whether interest from the date of the put and certain other costs should be reimbursable. We have vigorously defended that interest and costs are not owed, and are currently awaiting a ruling from an arbitration hearing.


	THREE MONTHS ENDED JUNE 30, 2021						SIX MONTHS ENDED JUNE 30, 2021
	FOREIGN CURRENCY TRANSLATION AND OTHER ADJUSTMENTS		CHANGE IN FAIR VALUE OF DERIVATIVE INSTRUMENTS		TOTAL		FOREIGN CURRENCY TRANSLATION AND OTHER ADJUSTMENTS		CHANGE IN FAIR VALUE OF DERIVATIVE INSTRUMENTS		TOTAL
Beginning of Period	$	(272,414)	$	(34,497)	$	(306,911)	$	(206,190)	$	(49,703)	$	(255,893)
Other comprehensive income (loss):
Foreign currency translation and other adjustments	42,624		—		42,624		(23,600)		—		(23,600)
Change in fair value of derivative instruments	—		5,634		5,634		—		20,840		20,840
Total other comprehensive income (loss)	42,624		5,634		48,258		(23,600)		20,840		(2,760)
End of Period	$	(229,790)	$	(28,863)	$	(258,653)	$	(229,790)	$	(28,863)	$	(258,653)


	THREE MONTHS ENDED JUNE 30, 2020						SIX MONTHS ENDED JUNE 30, 2020
	FOREIGN CURRENCY TRANSLATION AND OTHER ADJUSTMENTS		CHANGE IN FAIR VALUE OF DERIVATIVE INSTRUMENTS		TOTAL		FOREIGN CURRENCY TRANSLATION AND OTHER ADJUSTMENTS		CHANGE IN FAIR VALUE OF DERIVATIVE INSTRUMENTS		TOTAL
Beginning of Period	$	(475,130)	$	(18,118)	$	(493,248)	$	(252,825)	$	(9,756)	$	(262,581)
Other comprehensive income (loss):
Foreign currency translation and other adjustments	68,686		—		68,686		(153,619)		—		(153,619)
Change in fair value of derivative instruments	—		(2,961)		(2,961)		—		(11,323)		(11,323)
Total other comprehensive income (loss)	68,686		(2,961)		65,725		(153,619)		(11,323)		(164,942)
End of Period	$	(406,444)	$	(21,079)	$	(427,523)	$	(406,444)	$	(21,079)	$	(427,523)

The costs associated with the initial movement of customer records into physical storage and certain commissions are considered costs to obtain or fulfill customer contracts (collectively, “Contract Fulfillment Costs”). Contract Fulfillment Costs as of June 30, 2021 and December 31, 2020 are as follows:


	JUNE 30, 2021						DECEMBER 31, 2020
	GROSS CARRYING AMOUNT		ACCUMULATED AMORTIZATION		NET CARRYING AMOUNT		GROSS CARRYING AMOUNT		ACCUMULATED AMORTIZATION		NET CARRYING AMOUNT
Intake Costs asset	$	70,263	$	(39,083)	$	31,180	$	63,721	$	(33,352)	$	30,369
Commissions asset	104,184		(45,898)		58,286		91,069		(38,787)		52,282


DESCRIPTION	LOCATION IN BALANCE SHEET	JUNE 30, 2021		DECEMBER 31, 2020
Deferred revenue - Current	Deferred revenue	$	256,245	$	295,785
Deferred revenue - Long-term	Other Long-term Liabilities	34,502		35,612

Our Global Data Center Business features storage rental provided to customers at contractually specified rates over a fixed contractual period, which are accounted for in accordance with Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842), as amended. Storage rental revenue, including revenue associated with power and connectivity, associated with our Global Data Center Business for the three and six months ended June 30, 2021 and 2020 are as follows:

(1)Revenue associated with power and connectivity included within storage rental revenue was $14,561 and $27,694 for the three and six months ended June 30, 2021, respectively, and $11,540 and $22,953 for the three and six months ended June 30, 2020, respectively.

Stock-based compensation expense for the cost of stock options, restricted stock units (“RSUs”), performance units (“PUs”) and shares of stock issued under our employee stock purchase plan (collectively, “Employee Stock-Based Awards”) for the three and six months ended June 30, 2021 and 2020 is as follows:


	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
	2021		2020		2021		2020
Fair value of RSUs vested	$	3,118	$	3,266	$	22,979	$	21,645
Fair value of earned PUs that vested	235		161		5,826		11,051

Acquisition and integration costs represent operating expenditures directly associated with the closing and integration activities of our business acquisitions that have closed, or are highly probable of closing, and include (i) advisory, legal and professional fees to complete business acquisitions and (ii) costs to integrate acquired businesses into our existing operations, including move, severance, facility upgrade and system integration costs (collectively, "Acquisition and Integration Costs"). Acquisition and Integration Costs do not include costs associated with the formation of joint ventures or costs associated with the acquisition of customer relationships. Total Acquisition and Integration Costs for the three and six months ended June 30, 2021 is $2,277.


	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
	2021(1)		2020		2021(1)		2020
(Gain) Loss on disposal/write-down of property, plant and equipment, net	$	(128,935)	$	(1,275)	$	(133,386)	$	(2,330)

(1) The gains for the three and six months ended June 30, 2021 primarily consisted of gains of approximately $127,400 associated with the sale-leaseback transactions of five facilities in the United Kingdom, as part of our program to monetize a small portion of our industrial assets. The terms for these leases are consistent with the terms of our lease portfolio, which are disclosed in detail in Note 2.i. to Notes to Consolidated Financial Statements included in our Annual Report.


	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
DESCRIPTION	2021		2020		2021		2020
Foreign currency transaction losses (gains), net	$	4,729	$	1,471	$	7,043	$	(35,928)
Debt extinguishment expense	—		17,040		—		17,040
Other, net(1)	(190,959)		7,189		(188,560)		1,862
Other (Income) Expense, Net	$	(186,230)	$	25,700	$	(181,517)	$	(17,026)

(1)The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three and six months ended June 30, 2021 were the impacts of differences in the tax rates at which our foreign earnings are subject and a discrete tax expense of approximately $12,000 primarily resulting from a tax law change in the United Kingdom, partially offset by the benefits derived from the dividends paid deduction.

(2)For the three months ended June 30, 2020, we had a provision for income taxes of $9,683 and net income before provision for income taxes of $2,570; as such, our effective tax rate is not meaningful.

(3)The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the six months ended June 30, 2020 were the impacts of differences in the tax rates at which our foreign earnings are subject, partially offset by the benefits derived from the dividends paid deduction.


	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
	2021		2020		2021		2020
Net Income (Loss)	$	276,522	$	(7,113)	$	323,153	$	57,779
Less: Net Income (Loss) Attributable to Noncontrolling Interests	1,237		(27)		2,265		890
Net Income (Loss) Attributable to Iron Mountain Incorporated (utilized in numerator of Earnings Per Share calculation)	$	275,285	$	(7,086)	$	320,888	$	56,889
Weighted-average shares—basic	289,247,000		288,071,000		289,001,000		287,955,000
Effect of dilutive potential stock options	641,888		—		349,163		35,706
Effect of dilutive potential RSUs and PUs	1,190,357		—		953,104		309,911
Weighted-average shares—diluted	291,079,245		288,071,000		290,303,267		288,300,617
Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated:
Basic	$	0.95	$	(0.02)	$	1.11	$	0.20
Diluted	$	0.95	$	(0.02)	$	1.11	$	0.20
Antidilutive stock options, RSUs and PUs, excluded from the calculation	381,900		6,836,239		2,544,984		6,174,977

In December 2019, the Financial Accounting Standards Board issued ASU No. 2019-12, Income Taxes (Topic 740) (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions for recognizing deferred taxes for investments, performing intra-period allocation and calculating income taxes in interim periods. ASU 2019-12 also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. We adopted ASU 2019-12 on January 1, 2021. ASU 2019-12 did not have a material impact on our consolidated financial statements.