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. The rollforward of the allowance for doubtful accounts and credit memo reserves for the nine months ended September 30, 2023 is as follows:


DESCRIPTION	SEPTEMBER 30, 2023		DECEMBER 31, 2022
Assets:
Operating lease right-of-use assets	$	2,620,582	$	2,583,704
Financing lease right-of-use assets, net of accumulated depreciation(1)	300,424		251,690
Liabilities:
Current
Operating lease liabilities	$	276,191	$	288,738
Financing lease liabilities(1)	55,744		43,857
Long-term
Operating lease liabilities	$	2,479,223	$	2,429,167
Financing lease liabilities(1)	316,043		289,048

(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 SEPTEMBER 30,				NINE MONTHS ENDED SEPTEMBER 30,
DESCRIPTION	2023		2022		2023		2022
Operating lease cost(1)	$	172,040	$	145,293	$	489,153	$	428,686
Financing lease cost:
Depreciation of financing lease right-of-use assets	$	11,004	$	10,186	$	31,214	$	32,218
Interest expense for financing lease liabilities	4,843		4,126		13,600		13,163

(1)Operating lease cost, the majority of which is included in Cost of sales, includes variable lease costs of $34,866 and $100,864 for the three and nine months ended September 30, 2023, respectively, and $30,730 and $89,647 for the three and nine months ended September 30, 2022, respectively.


	NINE MONTHS ENDED SEPTEMBER 30,
CASH PAID FOR AMOUNTS INCLUDED IN MEASUREMENT OF LEASE LIABILITIES:	2023		2022
Operating cash flows used in operating leases	$	334,806	$	302,442

Operating cash flows used in financing leases (interest)	13,600		13,163
Financing cash flows used in financing leases	35,124		29,254

NON-CASH ITEMS:
Operating lease modifications and reassessments	$	65,874	$	145,133
New operating leases (including acquisitions and sale-leaseback transactions)	234,194		485,673

In addition to the leases signed but not yet commenced that were disclosed in Note 2.j. to Notes to Consolidated Financial Statements included in our Annual Report, we entered into an operating lease in March 2023 that is expected to commence in July 2024, with an initial lease term of 25 years. The total undiscounted minimum lease payments for this lease are approximately $170,100.


	GLOBAL RIM BUSINESS		GLOBAL DATA CENTER BUSINESS		CORPORATE AND OTHER		TOTAL CONSOLIDATED
Goodwill balance, net of accumulated amortization as of December 31, 2022	$	3,852,946	$	418,502	$	611,286	$	4,882,734
Tax deductible goodwill acquired during the period	—		—		11,045		11,045

Non-tax deductible goodwill acquired during the period	33,873		31,228		383		65,484

Fair value and other adjustments	(80)		—		2,333		2,253
Currency translation adjustments	(21,532)		(1,799)		(110)		(23,441)
Goodwill balance, net of accumulated amortization as of September 30, 2023	$	3,865,207	$	447,931	$	624,937	$	4,938,075
Accumulated goodwill impairment balance as of September 30, 2023	$	132,409	$	—	$	26,011	$	158,420


			FAIR VALUE MEASUREMENTS AT SEPTEMBER 30, 2023 USING
DESCRIPTION	TOTAL CARRYING VALUE AT SEPTEMBER 30, 2023		QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Money Market Funds	$	10,197	$	—	$	10,197	$	—
Time Deposits	45,910		—		45,910		—
Trading Securities	9,917		8,418		1,499		—
Derivative Assets	39,478		—		39,478		—
Derivative Liabilities	38		—		38		—
Deferred Purchase Obligations(1)	206,755		—		—		206,755


			FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2022 USING
DESCRIPTION	TOTAL CARRYING VALUE AT DECEMBER 31, 2022		QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Money Market Funds	$	11,311	$	—	$	11,311	$	—
Time Deposits	1,102		—		1,102		—
Trading Securities	9,462		9,426		36		—
Derivative Assets	51,396		—		51,396		—
Derivative Liabilities	489		—		489		—
Deferred Purchase Obligations(1)	193,033		—		—		193,033

(1)Primarily relates to the fair value of the Deferred Purchase Obligation (as defined in Note 3 to Notes to Consolidated Financial Statements included in our Annual Report) associated with the ITRenew Transaction (as defined in Note 3), which was determined utilizing a Monte-Carlo model and takes into account our forecasted projections as it relates to the underlying performance of the business. The Monte-Carlo simulation model incorporates assumptions as to expected gross profits over the applicable achievement period, including adjustments for the volatility of timing and amount of the associated revenue and costs, as well as discount rates that account for the risk of the underlying arrangement and overall market risks. Any material change to these assumptions may result in a significantly higher or lower fair value of the Deferred Purchase Obligation. The change in value of the Deferred Purchase Obligation during the three and nine months ended September 30, 2023 was driven by the accretion of the obligation to present value.

There were no material items that were measured at fair value on a non-recurring basis at September 30, 2023 and December 31, 2022 other than (i) those disclosed in Note 2.p. to Notes to Consolidated Financial Statements included in our Annual Report, (ii) the redemption value of recently acquired noncontrolling interests and previously held equity interests (both as disclosed in Note 3) and (iii) assets acquired and liabilities assumed through our acquisitions that occurred during the nine months ended September 30, 2023, all of which are based on Level 3 inputs.


	THREE MONTHS ENDED SEPTEMBER 30, 2023						THREE MONTHS ENDED SEPTEMBER 30, 2022
	FOREIGN CURRENCY TRANSLATION AND OTHER ADJUSTMENTS		DERIVATIVE FINANCIAL INSTRUMENTS		TOTAL		FOREIGN CURRENCY TRANSLATION AND OTHER ADJUSTMENTS		DERIVATIVE FINANCIAL INSTRUMENTS		TOTAL
Beginning of Period	$	(396,677)	$	14,433	$	(382,244)	$	(500,629)	$	53,654	$	(446,975)
Other comprehensive (loss) income:
Foreign currency translation and other adjustments	(79,416)		—		(79,416)		(174,739)		—		(174,739)
Change in fair value of derivative instruments	—		6,184		6,184		—		32,233		32,233
Reclassifications from accumulated other comprehensive items, net	—		(2,527)		(2,527)		—		—		—
Total other comprehensive (loss) income	(79,416)		3,657		(75,759)		(174,739)		32,233		(142,506)
End of Period	$	(476,093)	$	18,090	$	(458,003)	$	(675,368)	$	85,887	$	(589,481)


	NINE MONTHS ENDED SEPTEMBER 30, 2023						NINE MONTHS ENDED SEPTEMBER 30, 2022
	FOREIGN CURRENCY TRANSLATION AND OTHER ADJUSTMENTS		DERIVATIVE FINANCIAL INSTRUMENTS		TOTAL		FOREIGN CURRENCY TRANSLATION AND OTHER ADJUSTMENTS		DERIVATIVE FINANCIAL INSTRUMENTS		TOTAL
Beginning of Period	$	(454,509)	$	12,506	$	(442,003)	$	(341,024)	$	2,677	$	(338,347)
Other comprehensive (loss) income:
Foreign currency translation and other adjustments	(21,584)		—		(21,584)		(334,344)		—		(334,344)
Change in fair value of derivative instruments	—		10,638		10,638		—		83,210		83,210
Reclassifications from accumulated other comprehensive items, net	—		(5,054)		(5,054)		—		—		—
Total other comprehensive (loss) income	(21,584)		5,584		(16,000)		(334,344)		83,210		(251,134)
End of Period	$	(476,093)	$	18,090	$	(458,003)	$	(675,368)	$	85,887	$	(589,481)

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 September 30, 2023 and December 31, 2022 are as follows:


	SEPTEMBER 30, 2023						DECEMBER 31, 2022
	GROSS CARRYING AMOUNT		ACCUMULATED AMORTIZATION		NET CARRYING AMOUNT		GROSS CARRYING AMOUNT		ACCUMULATED AMORTIZATION		NET CARRYING AMOUNT
Intake Costs asset	$	77,937	$	(47,081)	$	30,856	$	68,345	$	(42,132)	$	26,213
Commissions asset	154,425		(66,777)		87,648		133,145		(58,949)		74,196


DESCRIPTION	LOCATION IN BALANCE SHEET	SEPTEMBER 30, 2023		DECEMBER 31, 2022
Deferred revenue - Current	Deferred revenue	$	325,493	$	328,910
Deferred revenue - Long-term	Other Long-term Liabilities	22,537		32,960

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 Codification ("ASC") 842, Leases. Storage rental revenue associated with our Global Data Center Business for the three and nine months ended September 30, 2023 and 2022 is as follows:

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 and system integration costs (collectively, "Acquisition and Integration Costs").


	THREE MONTHS ENDED SEPTEMBER 30,				NINE MONTHS ENDED SEPTEMBER 30,
	2023		2022(2)		2023(1)		2022(2)
(Gain) loss on disposal/write-down of property, plant and equipment, net(3)	$	(4,416)	$	(14,170)	$	(18,982)	$	(66,124)

(1) The gains for the nine months ended September 30, 2023 primarily consist of a gain of approximately $18,500 associated with a sale-leaseback transaction of a facility in Singapore during the first quarter of 2023.

(2) The gains for the nine months ended September 30, 2022 primarily consist of gains of approximately $66,000 associated with sale and sale-leaseback transactions, of which (i) approximately $17,000 relates to sale-leaseback transactions of two facilities in the United States and one in Canada during the third quarter of 2022 and (ii) approximately $49,000 relates to sale and sale-leaseback transactions of 11 facilities and parcels of land in the United States during the second quarter of 2022.

(3) The gains recognized during both 2023 and 2022 are the result of our program to monetize a small portion of our industrial assets through sale and sale-leaseback transactions. The terms for these leases are consistent with the terms of our lease portfolio, which are disclosed in detail in Note 2.j. to Notes to Consolidated Financial Statements included in our Annual Report.


	THREE MONTHS ENDED SEPTEMBER 30,				NINE MONTHS ENDED SEPTEMBER 30,
DESCRIPTION	2023		2022		2023		2022
Foreign currency transaction (gains) losses, net(1)(2)	$	(29,310)	$	(58,519)	$	177	$	(126,759)
Debt extinguishment expense	—		—		—		671
Other, net(3)(4)	13,039		5,649		67,702		87,902
Other (Income) Expense, Net	$	(16,271)	$	(52,870)	$	67,879	$	(38,186)

(1)The gains for the three months ended September 30, 2023 primarily consist of the impact of changes in the exchange rate of the British pound sterling against the United States dollar on our intercompany balances with and between certain of our subsidiaries.

(2)The gains for the three and nine months ended September 30, 2022 primarily consist of the impact of changes in the exchange rate of the Euro and the British pound sterling against the United States dollar on our intercompany balances with and between certain of our subsidiaries.

(3)Other, net for the nine months ended September 30, 2023 consists primarily of a loss of approximately $38,000 associated with the remeasurement to fair value of our previously held equity interest in the Clutter JV (as defined and discussed in Note 4), as well as losses on our equity method investments and the change in value of the Deferred Purchase Obligation.

(4)Other, net for the nine months ended September 30, 2022 consists primarily of (i) a loss of approximately $105,800 associated with the OSG Deconsolidation (as defined in Note 4 to Notes to Consolidated Financial Statements included in our Annual Report), partially offset by (ii) a gain of approximately $35,800 associated with the Clutter Transaction (as defined in Note 4).

We provide for income taxes during interim periods based on our estimate of the effective tax rate for the year. Our effective tax rates for the three and nine months ended September 30, 2023 and 2022 are as follows:

(1)The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three and nine months ended September 30, 2023 were the benefits derived from the dividends paid deduction and the differences in the tax rates to which our foreign earnings are subject. In addition, there were gains and losses recorded in Other (income) expense, net during the period, for which there was no tax impact.

(2)The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three and nine months ended September 30, 2022 were the benefits derived from the dividends paid deduction and the differences in the tax rates to which our foreign earnings are subject. In addition, there were gains and losses recorded in Other (income) expense, net and Gain (loss) on disposal/write-down of property, plant and equipment, net, during the period for which there was an insignificant tax impact. During the first quarter of 2022, there was also a release of valuation allowances on deferred tax assets of our U.S. taxable REIT subsidiaries of approximately $9,900 as a result of our acquisition of Intercept Parent, Inc. ("ITRenew").


	THREE MONTHS ENDED SEPTEMBER 30,				NINE MONTHS ENDED SEPTEMBER 30,
	2023		2022		2023		2022
Net Income (Loss)	$	91,391	$	192,931	$	158,069	$	436,496
Less: Net Income (Loss) Attributable to Noncontrolling Interests	348		767		2,317		1,952
Net Income (Loss) Attributable to Iron Mountain Incorporated (utilized in numerator of Earnings Per Share calculation)	$	91,043	$	192,164	$	155,752	$	434,544
Weighted-average shares—basic	292,148,000		290,937,000		291,805,000		290,673,000
Effect of dilutive potential stock options	1,592,000		1,133,952		1,376,000		1,126,280
Effect of dilutive potential RSUs and PUs	529,000		480,919		434,000		494,956
Weighted-average shares—diluted	294,269,000		292,551,871		293,615,000		292,294,236
Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated:
Basic	$	0.31	$	0.66	$	0.53	$	1.49
Diluted	$	0.31	$	0.66	$	0.53	$	1.49
Antidilutive stock options, RSUs and PUs excluded from the calculation	16,820		220,421		106,561		403,362

In December 2021, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") No. 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ("ASU 2021-08"). ASU 2021-08 requires that an entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers, and for the related revenue contracts in accordance with ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as if it had originated the contracts. We adopted ASU 2021-08 on January 1, 2023 on a prospective basis, and there was no material impact on our condensed consolidated financial statements.