10-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 10-K

(Mark One)
ý	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Year Ended December 31, 2011
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

IRON MOUNTAIN INCORPORATED
(Exact name of Registrant as Specified in Its Charter)

Delaware (State or other jurisdiction of incorporation) 745 Atlantic Avenue, Boston, Massachusetts (Address of principal executive offices)	23-2588479 (I.R.S. Employer Identification No.) 02111 (Zip Code)
617-535-4766 (Registrant's telephone number, including area code)

         Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Name of Exchange on Which Registered
Common Stock, $.01 par value per share	New York Stock Exchange

         Securities registered pursuant to Section 12(g) of the Act: None

         Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ý    No o

         Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o    No ý

         Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý    No o

         Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý    No o

         Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K ý

         Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a small reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ý	Accelerated filer o
Non-accelerated filer o (Do not check if a smaller reporting company)	Smaller reporting company o

         Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o    No ý

         As of June 30, 2011, the aggregate market value of the Common Stock of the registrant held by non-affiliates of the registrant was $6,038,510,230.13 based on the closing price on the New York Stock Exchange on such date.

         Number of shares of the registrant's Common Stock at February 10, 2012: 171,087,289

IRON MOUNTAIN INCORPORATED
2011 FORM 10-K ANNUAL REPORT

Table of Contents

		Page
PART I
Item 1.	Business	1
Item 1A.	Risk Factors	15
Item 1B.	Unresolved Staff Comments	22
Item 2.	Properties	22
Item 3.	Legal Proceedings	22
Item 4.	Mine Safety Disclosures	23
PART II
Item 5.	Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	24
Item 6.	Selected Financial Data	26
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	29
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	65
Item 8.	Financial Statements and Supplementary Data	67
Item 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	67
Item 9A.	Controls and Procedures	67
Item 9B.	Other Information	71
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	72
Item 11.	Executive Compensation	72
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	72
Item 13.	Certain Relationships and Related Transactions, and Director Independence	72
Item 14.	Principal Accountant Fees and Services	72
PART IV
Item 15.	Exhibits and Financial Statement Schedules	72

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        References in this Annual Report on Form 10-K to "the Company," "Iron Mountain," "we," "us" or "our" include Iron Mountain Incorporated and its consolidated subsidiaries, unless the context indicates otherwise.

DOCUMENTS INCORPORATED BY REFERENCE

        Certain information required in Items 10, 11, 12, 13 and 14 of Part III of this Annual Report on Form 10-K is incorporated by reference from our definitive Proxy Statement for our 2012 Annual Meeting of Stockholders (our "Proxy Statement") to be filed with the Securities and Exchange Commission within 120 days after the close of the fiscal year ended December 31, 2011.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

        We have made statements in this Annual Report on Form 10-K that constitute "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements concern our operations, economic performance, financial condition, goals, beliefs, future growth strategies, investment objectives, plans and current expectations, such as our (1) expected increase in our Adjusted OIBDA margins in our International Business segment, (2) commitment to stockholder payouts and dividend payments, (3) expected target leverage ratio, and (4) expected divestiture of the Italian Business. The forward-looking statements are subject to various known and unknown risks, uncertainties and other factors. When we use words such as "believes," "expects," "anticipates," "estimates" or similar expressions, we are making forward-looking statements.

        Although we believe that our forward-looking statements are based on reasonable assumptions, our expected results may not be achieved, and actual results may differ materially from our expectations. Important factors that could cause actual results to differ from expectations include, among others:

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the cost to comply with current and future laws, regulations and customer demands relating to privacy issues;

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the impact of litigation or disputes that may arise in connection with incidents in which we fail to protect our customers' information;

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changes in the price for our services relative to the cost of providing such services;

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changes in customer preferences and demand for our services;

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the adoption of alternative technologies and shifts by our customers to storage of data through non-paper based technologies;

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the cost or potential liabilities associated with real estate necessary for our business;

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the performance of business partners upon whom we depend for technical assistance or management expertise outside the U.S.;

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changes in the political and economic environments in the countries in which our international subsidiaries operate;

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the failure to consummate a successful sale of the Italian Business;

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claims that our technology violates the intellectual property rights of a third party;

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the impact of legal restrictions or limitations under stock repurchase plans on price, volume or timing of stock repurchases;

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the impact of alternative, more attractive investments on dividends or stock repurchases;

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our ability or inability to complete acquisitions on satisfactory terms and to integrate acquired companies efficiently; and

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other trends in competitive or economic conditions affecting our financial condition or results of operations not presently contemplated.

        Other risks may adversely impact us, as described more fully under "Item 1A. Risk Factors."

        You should not rely upon forward-looking statements except as statements of our present intentions and of our present expectations, which may or may not occur. You should read these cautionary statements as being applicable to all forward-looking statements wherever they appear. Except as required by law, we undertake no obligation to release publicly the result of any revision to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Readers are also urged to carefully review and consider the various disclosures we have made in this document, as well as our other periodic reports filed with the Securities and Exchange Commission (the "Commission" or "SEC").

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PART I

Item 1. Business.

A.    Development of Business.

        We provide information management services that help organizations around the world lower the costs, risks and inefficiencies of managing their physical and digital data. Our solutions enable customers to protect and better use their information—regardless of its format, location or lifecycle stage—so they can optimize their business and ensure proper recovery, compliance and discovery. We offer comprehensive records management services, data protection & recovery services and information destruction services, along with the expertise and experience to address complex information management challenges such as rising storage costs, litigation, regulatory compliance and disaster recovery. Founded in an underground facility near Hudson, New York in 1951, Iron Mountain Incorporated, a Delaware corporation, is a trusted partner to more than 155,000 clients throughout North America, Europe, Latin America and Asia Pacific. We have a diversified customer base comprised of commercial, legal, banking, healthcare, accounting, insurance, entertainment and government organizations, including more than 94% of the Fortune 1000. As of December 31, 2011, we provided services in more than 35 countries on five continents, employed over 17,000 people and operated more than 975 facilities.

        Now in our 61^st year, we have experienced tremendous growth, particularly since successfully completing the initial public offering of our common stock in February 1996. We have grown from a business with limited product offerings and annual revenues of $104.0 million in 1995 into a global enterprise providing a broad range of information management services to customers in markets around the world with total revenues of more than $3.0 billion for the year ended December 31, 2011. On January 5, 2009, we were added to the S&P 500 Index and as of December 31, 2011 we were number 643 on the Fortune 1000.

        Our success since becoming a public company in 1996 has been driven in large part by our execution of a consistent long-term growth plan to build market leadership by extending our strategic position through service line and global expansion. This growth plan has been sequenced into three phases. The first phase involved establishing leadership and broad market access in our core businesses, records management and data protection & recovery, primarily through acquisitions. In the second phase, we invested in building a successful selling organization to access new customers, converting previously unvended demand. While different parts of our business are in different stages of evolution along our three-phase strategy, as an enterprise, we have transitioned to the third phase of our growth plan, which we call the capitalization phase. In this phase, which we expect to continue for many years, we seek to expand our relationships with our customers to continue solving their increasingly complex information management problems. Growing our customer relationships well means expanding our service offerings on a global basis while maximizing our solid core businesses. In doing this, we continue to build what we believe to be a very durable business through disciplined execution.

        Consistent with this model, we have transitioned from a growth strategy driven primarily by acquisitions of information management services companies to a growth strategy driven primarily by internal growth. In 2001, internal revenue growth exceeded growth through acquisitions for the first time since we began the first phase of our growth plan in 1996. This has been the case in each year since 2001, with the exception of 2004. In the absence of significant acquisition spending, we expect to achieve a majority of our revenue growth internally in 2012 and beyond.

        We expect to achieve our long-term growth goals by offering our customers integrated services that address their increasingly complex information management needs regardless of the format, location or lifecycle stage of their information. By offering integrated services, we aim to help our customers reduce the costs, risks and complexities associated with managing their data while increasing their compliance with various laws, regulations, company policies and industry best practices. Consistent with

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our overall strategy, we are focused on improving our internal revenue growth trajectory in the near-term primarily through a set of specific initiatives. These initiatives are based on a targeted approach to improving our sales effectiveness through increased focus on our core businesses, customer segmentation and enhanced marketing programs. By successfully executing on these initiatives, we expect to increase revenues from our existing customers by selling them new services and by gaining new customers that do not currently outsource some or all of their information management service needs or who outsource their information management needs to other vendors. We are also targeting higher growth in certain international businesses as we expand our platform for selling core services and new services in higher growth markets. Finally, we are continuing to expand our services portfolio in the hybrid records market, which includes both physical and digital records, to capture what we see as larger, faster growing opportunities.

        At this stage in our evolution we are also focused on driving increased profitability and cash flow through a disciplined management approach and a focus on optimizing our business operations. Comprised of productivity initiatives, pricing program improvements and cost controls, our optimization strategy has produced significant and visible results. Between 2007 and 2011, we have compounded annual growth rates of 8% for adjusted operating income before depreciation, amortization, intangible impairments and (gain) loss on disposal/write-down of property, plant and equipment, net ("Adjusted OIBDA"), 15% for Adjusted Earnings per Share and 28% for Free Cash Flows before Acquisitions and Discretionary Investments ("FCF"). During that same period, we reduced our capital expenditures (excluding real estate) as a percent of revenues from 13.5% in 2007 to 6.6% in 2011. These gains were driven primarily by the optimization of our North American Business segment as we increased Adjusted OIBDA margins in that segment by more than 700 basis points. Our focus is on sustaining the high margin, high profitability levels of the North American Business segment while optimizing our International Business segment using the same strategies. We expect to increase our Adjusted OIBDA margins in the International Business segment by approximately 700 basis points between 2010 and the end of 2013. For more detailed definitions and reconciliations of Adjusted OIBDA, Adjusted Earnings per Share from Continuing Operations and FCF and a discussion of why we believe these measures provide relevant and useful information to our current and potential investors, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Measures."

        We are committed to delivering stockholder value. To that end, and supported by our increased profitability and strong cash flows, we initiated a stockholder payout program in February 2010 consisting of a share repurchase authorization of up to $150.0 million and a dividend policy under which we have paid and in the future intend to pay cash dividends on our common stock. Our first ever quarterly cash dividend, declared in March 2010, was $0.0625 per share. Since initiating our stockholder payout program in February 2010, our board of directors has approved increases in the amount authorized under our share repurchase program of up to an additional $1.05 billion, bringing the total authorization to $1.2 billion. As of December 31, 2011, we have purchased 36.6 million shares of our common stock for $1.1 billion under this program. We have also increased our quarterly dividend on two occasions, most recently to $0.25 per share in June 2011, which represents a 300% increase over the quarterly amount declared in March 2010.

        In April 2011, we announced a three-year strategic plan to increase stockholder value. The key components of our plan are: (i) sustaining a leadership position in our North American Business segment; (ii) driving substantial improvements in our International Business segment; and (iii) committing to significant stockholder payouts of $2.2 billion through 2013, with $1.2 billion being paid out through May 2012. As of December 31, 2011, we had returned $1.1 billion to stockholders against our commitment of returning $1.2 billion through May 2012, including $0.1 billion in dividends and $1.0 billion in share repurchases. As part of our strategic plan, in June 2011, we completed the sale of our online backup and recovery, digital archiving and eDiscovery solutions businesses (the "Digital Business") for approximately $395.4 million in cash. Additionally, in connection with our strategic

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portfolio review of certain international operations, we sold our New Zealand operations in October 2011 for approximately $10.0 million in cash and, in December 2011, we committed to a plan to sell our records management business in Italy (the "Italian Business").

B.    Description of Business.

Overview

        Our information management services can be broadly divided into three major service categories: records management services, data protection & recovery services, and information destruction services. Media formats can be broadly divided into physical and electronic records. We define physical records to include paper documents, as well as all other non-electronic media such as microfilm and microfiche, master audio and videotapes, film, X-rays and blueprints. Electronic records include e-mail and various forms of magnetic media such as computer tapes, hard drives and optical disks.

        Our records management services include: records management program development and implementation based on best practices to help customers comply with specific regulatory requirements, implementation of policy-based programs that feature secure, cost-effective storage for all major media, including paper (which is the dominant form of records storage), flexible retrieval access and retention management. Included within records management services are our hybrid services. These services help organizations gain better access to, and ultimately control over, their paper records by digitizing, indexing and hosting them in online archives to provide complete information lifecycle solutions. Within the records management services category, we have developed specialized services for vital records and regulated industries such as healthcare, energy, government and financial services.

        Our data protection & recovery services include disaster preparedness, planning, support and secure, off-site vaulting of data backup media for fast and efficient data recovery in the event of a disaster, human error or virus. Our technology-based data protection & recovery services include online backup and recovery solutions for desktop and laptop computers and remote servers. Since our sale of the Digital Business, we continue to offer these technology-based services primarily through partnerships. Additionally, we serve as a trusted, neutral third party and offer technology escrow services to protect and manage source code and other proprietary information.

        Our information destruction services are comprised almost exclusively of secure shredding services. Secure shredding services complete the lifecycle of a record and involve the shredding of sensitive documents in a way that ensures privacy and a secure chain of custody for the records. These services typically include either the scheduled pick-up of loose office records, which customers accumulate in specially designed secure containers we provide, or the shredding of documents stored in records facilities upon the expiration of their scheduled retention periods.

Physical Records

        Physical records may be broadly divided into two categories: active and inactive. Active records relate to ongoing and recently completed activities or contain information that is frequently referenced. Active records are usually stored and managed on-site by their owners to ensure ready availability. Inactive physical records are the principal focus of the information management services industry and consist of those records that are not needed for immediate access but which must be retained for legal, regulatory and compliance reasons or for occasional reference in support of ongoing business operations. A large and growing specialty subset of the physical records market is medical records. These are active and semi-active records that are often stored off-site with, and serviced by, an information management services vendor. Special regulatory requirements often apply to medical records. In addition to our core records management services, we provide consulting, facilities management, fulfillment and other outsourcing services.

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Electronic Records

        Electronic records management focuses on the storage of, and related services for, computer media that is either a backup copy of recently processed data or archival in nature. We believe the issues encountered by customers trying to manage their electronic records are similar to the ones they face in their physical records management programs and consist primarily of: (1) storage capacity and the preservation of data; (2) access to and control over the data in a secure environment; and (3) the need to retain electronic records due to regulatory requirements or for litigation support. Customer needs for data backup and recovery and archiving are distinctively different. Backup data exists because of the need of many businesses to maintain backup copies of their data in order to be able to recover the data in the event of a system failure, casualty loss or other disaster. It is customary (and a best practice) for data processing groups to rotate backup tapes to off-site locations on a regular basis and to require multiple copies of such information at multiple sites. In addition to the physical rotation and storage of backup data that we provide, we offer online backup services through partnerships as an alternative way for businesses to store and access data. Online backup is a Web-based service that automatically backs up computer data from servers or directly from desktop and laptop computers over the Internet and stores it in secure data centers.

Growth of Market

        We believe that the volume of stored physical and electronic records will continue to increase on a global basis for a number of reasons, including: (1) regulatory requirements; (2) concerns over possible future litigation and the resulting increases in volume and holding periods of records; (3) the continued proliferation of data processing technologies such as personal computers and networks; (4) inexpensive document producing technologies such as desktop publishing software and desktop printing; (5) the high cost of reviewing records and deciding whether to retain or destroy them; (6) the failure of many entities to adopt or follow policies on records destruction; and (7) the need to keep backup copies of certain records in off-site locations for business continuity purposes in the event of disaster.

        We believe that the creation of paper-based information will be sustained, not in spite of, but because of, "paperless" technologies such as e-mail and the Internet. These technologies have prompted the creation of hard copies of such electronic information and have also led to increased demand for electronic records services, such as the storage and off-site rotation of backup copies of magnetic media. In addition, we believe that the proliferation of digital information technologies and distributed data networks has created a growing need for efficient, cost-effective, high quality technology solutions for electronic data protection and the management of electronic documents.

Acquisitions in a Highly Fragmented Industry

        The physical information management services industry has long been and remains a highly fragmented industry with thousands of competitors in North America and around the world. Between 1995 and 2004 there was significant acquisition activity in the industry driven primarily by us and certain of our larger competitors. Acquisitions were a fast and efficient way to achieve scale, expand geographically and broaden service offerings.

        We believe that since the 1990s there has been ongoing acquisition activity in the physical information management services industry, both in North America and internationally, because of the opportunities for larger information management services providers to achieve economies of scale and meet customer demands for more sophisticated, technology-based solutions. We believe that this trend is also due to, and may continue as a result of, the preference of certain large organizations to contract with one physical information management services vendor in multiple cities and countries for its physical information management service needs. Larger national or multinational information management service companies are better able to satisfy the demands of larger multi-city or multi-national customers than single city competitors.

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        Attractive acquisitions, many of which are small, in North America and internationally continue to exist and we may from time to time acquire these businesses where we believe they present a good opportunity to create value for our stockholders.

Characteristics of Our Business

        We generate our revenues by providing storage, core records management, data protection & recovery, information destruction, hybrid services and an expanding menu of complementary products and services to a large and diverse customer base. Providing outsourced information management services is the mainstay of our customer relationships and serves as the foundation for our revenue growth. Core services, which are a vital part of a comprehensive records management program, consist primarily of the handling and transportation of stored records and information. In our secure shredding operations, core services consist primarily of the scheduled collection and shredding of records and documents generated by business operations. Additionally, core services include certain hybrid services and recurring project revenues. As is the case with storage revenues, core service revenues are highly recurring in nature. In 2011, our storage and core service revenues represented approximately 88% of our total consolidated revenues. In addition to our core services, we offer a wide array of complementary products and services, including special project work, data restoration projects, fulfillment services, consulting services, technology services and product sales (including specially designed storage containers and related supplies). In addition, complementary services revenue includes recycled paper revenue. Complementary services address more specific needs and are designed to enhance our customers' overall records management programs. These services complement our core services; however, they are more episodic and discretionary in nature. Revenue generated by all of our operating segments includes both core and complementary components.

        In general, our North American Business and our International Business segments offer the products and services discussed below, in their respective geographies. The amount of revenues derived from our North American Business and International Business segments and other relevant data, including financial information about geographic areas and product and service lines, for fiscal years 2009, 2010 and 2011 are set forth in Note 9 to Notes to Consolidated Financial Statements.

Service Offerings

        Our information management services can be broadly divided into three major categories: records management services, data protection & recovery services and information destruction services. We offer both physical services and technology solutions in the records management and data protection & recovery categories. Currently, we only offer physical services in the information destruction services category.

Records Management Services

        By far our largest category of services, records management services consists primarily of the archival storage of records for long periods of time according to applicable laws, regulations and industry best practices. Core to any records management program is the handling and transportation of stored records and the eventual destruction of those records upon the expiration of their scheduled retention periods. This is accomplished through our extensive service and courier operations. Other records management services include our hybrid services as well as Compliant Records Management and Consulting Services, Health Information Management Solutions, IM Entertainment Services, Energy Data Services, Discovery Services and other ancillary services.

        Hard copy business records are typically stored in cartons packed by the customer for long periods of time with limited activity. For some customers we store individual files on an open shelf basis and these files are typically more active. Storage charges are generally billed monthly on a per storage unit

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basis, usually either per carton or per cubic foot of records, and include the provision of space, racking, computerized inventory and activity tracking and physical security.

        Service and courier operations are an integral part of our comprehensive records management program for all physical media and include adding records to storage, temporarily removing records from storage, refiling of removed records, permanently withdrawing records from storage and destroying records. Service charges are generally assessed for each activity on a per unit basis. Courier operations consist primarily of the pick-up and delivery of records upon customer request. Charges for courier services are based on urgency of delivery, volume and location and are billed monthly. As of December 31, 2011, we were utilizing a fleet of approximately 3,700 owned or leased vehicles.

        The growth rate of mission-critical digital information is accelerating, driven in part by the use of the Internet as a distribution and transaction medium. The rising cost and increasing importance of digital information management, coupled with the increasing availability of telecommunications bandwidth at lower costs, may create meaningful opportunities for us to provide solutions to our customers with respect to their digital records management challenges. We continue to cultivate marketing and technology partnerships to support this anticipated growth.

        The focus of our hybrid business is to develop, implement and support comprehensive information management solutions for the complete lifecycle of our customers' information. We seek to develop solutions that solve our customers' document management challenges by integrating the management of physical records, document conversion and digital storage. Our hybrid services complement our core service offerings, leveraging our global footprint and our existing customer relationships. We differentiate our offerings from our competitors by providing solutions that integrate and extend our existing portfolio of products and services. The trend towards increased usage of Electronic Document Management ("EDM") systems represents another opportunity for us to manage active records. Our hybrid services provide the bridge between customers' physical documents and their new EDM solutions.

        We offer records management services that have been tailored for specific industries, such as health care, or to address the needs of customers with more specific requirements based on the critical nature of their records. Healthcare information services principally include the handling, storage, filing, processing and retrieval of medical records used by hospitals, private practitioners and other medical institutions. Medical records tend to be more active in nature and are typically stored on specialized open shelving systems that provide easier access to individual files. Healthcare information services also include recurring project work and ancillary services. Recurring project work involves the on-site removal of aged patient files and related computerized file indexing. Ancillary healthcare information services include release of information (medical record copying and delivery), temporary staffing, contract coding, facilities management and imaging.

        Vital records contain critical or irreplaceable data such as master audio and video recordings, film and other highly proprietary information, such as energy data. Vital records may require special facilities or services, either because of the data they contain or the media on which they are recorded. Our charges for providing enhanced security and special climate-controlled environments for vital records are higher than for typical storage services. We provide the same ancillary services for vital records as we provide for our other storage operations.

        We offer a variety of additional services which customers may request or contract for on an individual basis. These services include conducting records inventories, packing records into cartons or other containers, and creating computerized indices of files and individual documents. We also provide services for the management of active records programs. We can provide these services, which generally include document and file processing and storage, both off-site at our own facilities and by supplying our own personnel to perform management functions on-site at the customer's premises. We also sell a full line of specially designed corrugated cardboard storage cartons.

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        Other complementary lines of business that we operate include fulfillment services and professional consulting services. Fulfillment services are performed by our wholly owned subsidiary, Iron Mountain Fulfillment Services, Inc. ("IMFS"). IMFS stores marketing literature and other materials for its customers and delivers this material to sales offices, trade shows and prospective customers' locations based on current and prospective customer requests. In addition, IMFS assembles custom marketing packages and orders and manages and provides detailed reporting on customer marketing literature inventories. A growing element of the content we manage and fulfill is stored digitally and printed on demand by IMFS. Digital print allows marketing materials such as brochures, direct mail, flyers, pamphlets and newsletters to be personalized to the recipient with variable messages, graphics and content.

        We provide professional consulting services to customers, enabling them to develop and implement comprehensive records and information management programs. Our consulting business draws on our experience in information management services to analyze the practices of companies and assist them in creating more effective programs of records and information management. Our consultants work with these customers to develop policies and schedules for document retention and destruction.

        We divested ourselves of our domain name management product line in 2010 and our Digital Business, including our former wholly owned subsidiaries, Mimosa Systems, Inc. and Stratify, Inc., and New Zealand operations in 2011. Also, we committed to selling our Italian Business in December 2011. Consistent with our treatment of acquisitions, we eliminated all revenues associated with these businesses, which have all been reflected as discontinued operations for financial reporting purposes, from the calculation of our internal growth rates for 2009, 2010 and 2011.

Data Protection & Recovery Services

        Our data protection & recovery services are designed to comply with applicable laws and regulations and to satisfy industry best practices with regard to the off-site vaulting of data for disaster recovery and business continuity purposes. We provide data protection & recovery services for both physical and electronic records. We also offer technology escrow services in this category.

        Physical data protection & recovery services consist of the storage and rotation of backup computer media as part of corporate disaster recovery and business continuity plans. Computer tapes, cartridges and disk packs are transported off-site by our courier operations on a scheduled basis to secure, climate-controlled facilities, where they are available to customers 24 hours a day, 365 days a year, to facilitate data recovery in the event of a disaster. Frequently, backup tapes are rotated from our facilities back to our customers' data centers. We also manage tape library relocations and support disaster recovery testing and execution.

        Online backup is a Web-based service that automatically backs up computer data from servers or directly from desktop or laptop computers over the Internet and stores it in secure data centers. Since our sale of the Digital Business, we continue to offer this service pursuant to a reseller agreement with Autonomy Corporation plc, a corporation formed under the laws of England and Wales ("Autonomy").

        Through our technology escrow services business, we act as a trusted, neutral, third party, safeguarding valuable technology assets—such as software source code, object code and data—in secure, access-protected escrow accounts. Acting in this intermediary role, we help document and maintain intellectual property integrity. The result is increased control and leverage for all parties, enabling them to protect themselves, while maintaining competitive advantage.

Information Destruction Services

        Our information destruction services consist primarily of physical secure shredding operations. Secure shredding is a natural extension of our hard copy records management services, completing the lifecycle of a record, and involves the shredding of sensitive documents for customers that, in many cases, also use our services for management of archival records. These services typically include the

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scheduled pick-up of loose office records which customers accumulate in specially designed secure containers we provide. Complementary to our shredding operations is the sale of the resultant waste paper to third-party recyclers. Through a combination of plant-based shredding operations and mobile shredding units comprised of custom built trucks, we are able to offer secure shredding services to our customers throughout the U.S., Canada, the United Kingdom, Australia and Latin America.

Financial Characteristics of Our Business

        Our financial model is based on the recurring nature of our various revenue streams. The historical predictability of our revenues and the resulting Adjusted OIBDA allow us to operate with a high degree of financial leverage. Our business has the following financial characteristics:

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Recurring Revenues.  We derive a majority of our consolidated revenues from fixed periodic, usually monthly, fees charged to customers based on the volume of records stored. Once a customer places physical records in storage with us and until those records are destroyed or permanently removed (for which we typically receive a service fee), we receive recurring payments for storage fees without incurring additional labor or marketing expenses or significant capital costs. Similarly, contracts for the storage of electronic backup media involve primarily fixed monthly payments. Our annual revenues from these fixed periodic storage fees have grown for 23 consecutive years. For each of the three years 2009 through 2011, storage revenues, which are stable and recurring, have accounted for over 55% or more of our total consolidated revenues. This stable and growing storage revenue base also provides the foundation for increases in service revenues and Adjusted OIBDA.

•

Historically Non-Cyclical Storage Business.  Historically, we have not experienced significant reductions in our storage business as a result of economic downturns although, during recent economic slowdowns, the rate at which some customers added new cartons to their inventory was below historical levels. We believe that companies that have outsourced records management services are less likely during economic downturns to incur the move-out costs and other expenses associated with accelerating destruction of their records, switching vendors or moving their records management services programs in-house. However, during the current economic downturn, which is more severe and has lasted longer than other recent downturns, destruction rates have increased as some customers have been more willing to incur additional short-term service costs in exchange for lower storage costs in the long-term. In addition, we have experienced longer sales cycles and lower incoming volumes from existing customers, due in large part we believe to high unemployment rates and generally lower levels of business activity. Combined, these impacts have resulted in lower net volume growth rates. The net effect of these factors has been the continued growth of our storage revenue base, albeit at a lower rate. For each of the three years 2009 through 2011, total net volume storage growth has been approximately 2% on a global basis.

•

Inherent Growth from Existing Physical Records Customers.  Our physical records customers have, on average, sent us additional cartons at a faster rate than stored cartons have been destroyed or permanently removed. However, during the current economic downturn, the combination of lower incoming volumes from existing customers, due in large part we believe to high unemployment rates and generally lower business activity, and increased destruction rates, as described above, has resulted in net volume growth from existing customers being negative at times in certain markets. We expect that after the economy has improved, our growth from existing customers will improve although we cannot give any assurance as to how much, if any, improvement we will realize. We believe the continued growth of our physical records storage revenues is the result of a number of factors, including: (1) the trend toward increased records retention; (2) customer satisfaction with our services; (3) the costs and inconvenience of moving storage operations in-house or to another provider of information management services; and

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(4) our positive pricing actions; however, in the current economic downturn, elevated destruction and withdrawal rates have resulted in lower net volume growth in recent quarters.

•

Diversified and Stable Customer Base.  As of December 31, 2011, we had over 155,000 clients in a variety of industries. We currently provide services to commercial, legal, banking, healthcare, accounting, insurance, entertainment and government organizations, including more than 94% of the Fortune 1000. No customer accounted for as much as 2% of our consolidated revenues in any of the years ended December 31, 2009, 2010 and 2011. For each of the three years 2009 through 2011, the average volume reduction due to customers terminating their relationship with us was less than 3%.

•

Capital Expenditures Related Primarily to Business Line Growth and Ongoing Operations.  Our business requires significant capital expenditures to support our expected revenue growth and ongoing operations as well as new products and services and increased profitability. As the nature of our business has evolved over time, so has the nature of our capital expenditures. Every year we expend capital to support a number of different objectives. The majority of our capital goes to support business line growth and our ongoing operations. We also expend capital to support the development and improvement of products and services and projects designed to increase our profitability. These expenditures are generally smaller and more discretionary in nature. Below are descriptions of the major types of capital expenditures we are likely to make in a given year:

•

Capital to support business line growth—these expenditures are primarily related to capacity expansion such as investments in new building outfitting, carton storage systems, tape storage systems and containers, shredding plants and bins and technology service storage and processing capacity.

•

Capital to support ongoing business operations—these expenditures are primarily related to major repairs and/or the replacement of assets, such as facilities, warehouse equipment and computers, previously referred to as maintenance capital expenditures. This category also includes operational support initiatives such as sales and marketing and information technology projects to support infrastructure requirements.

•

Capital for new product development—these expenditures are directly related to the development of new products or services in support of our integrated value proposition.

•

Capital for product improvement—these expenditures are primarily related to product and service enhancements that support our leadership position in the various markets in which we operate. Spending in this area includes items such as increased feature functionality, security upgrades or system enhancements.

•

Capital to support operational efficiencies—these expenditures are primarily related to driving increased profitability through cost savings and operating efficiencies and include items such as facility consolidations and systems to support operating process improvements.

•

Capital to acquire/construct real estate—these expenditures are directly related to the acquisition of real estate, either through the purchase of a new facility or the exercise of a purchase option in an existing lease, or the construction of a new facility.

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        Following is a table presenting our capital expenditures for 2009, 2010 and 2011 organized by the nature of the spending as described above:

	Year Ended December 31,
Nature of Capital Spend (dollars in millions)	2009(1)(2)		2010(1)(2)		2011(1)(2)
Business Line Growth	$	156	$	116	$	81
Business Operations(3)		56		65		84
Product Development		12		10		2
Product Improvement		28		31		14
Operational Efficiencies		9		8		18
Real Estate		36		14		20
Total Capital	$	297	$	244	$	218

        We believe that capital expenditures incurred as a percent of revenues is a meaningful metric for investors as it indicates the efficiency with which we are investing in the growth and operational efficiency of our business. For the years 2009 through 2011, our total capital expenditures incurred as a percent of revenues were approximately 11%, 8% and 7%, respectively. The decrease in capital expenditures as percent of revenues since 2009 is due primarily to our disciplined approach to capital management, a shift toward less capital intense service revenues and moderating growth rates in our physical storage business.

        Following is a table presenting our capital expenditures as a percent of total revenues for 2009, 2010 and 2011 organized by the nature of the spending as described above:

	Year Ended December 31,
Nature of Capital Spend	2009(1)(2)			2010(1)(2)			2011(1)(2)
Business Line Growth		5.6	%		4.0	%		2.7	%
Business Operations(3)		2.0	%		2.2	%		2.8	%
Product Development		0.4	%		0.3	%		0.1	%
Product Improvement		1.0	%		1.1	%		0.5	%
Operational Efficiencies		0.3	%		0.3	%		0.6	%
Real Estate		1.3	%		0.5	%		0.7	%
Total Capital		10.7	%		8.4	%		7.2	%

(1)

Represents accrued capital expenditures and may differ from amounts presented on the cash basis in the Consolidated Statement of Cash Flows.

(2)

Columns may not foot due to rounding.

(3)

Capital expended in support of ongoing business operations includes amounts previously referred to as maintenance capital expenditures. This category also includes capital expended on operational support initiatives such as sales and marketing and information technology projects to support infrastructure requirements.

Growth Strategy

        We offer our customers an integrated value proposition by providing them with comprehensive records management services, data protection & recovery services and information destruction services, along with the expertise and experience to address complex information management challenges such as rising storage costs, litigation, regulatory compliance and disaster recovery. We expect to maintain a leadership position in the information management services industry around the world by enabling customers to protect and better use their information—regardless of its format, location or lifecycle stage—so they can optimize their business and ensure proper recovery, compliance and discovery.

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        In the U.S. and Canada, we seek to be one of the largest information management services providers in each of our markets. Internationally, our objectives are to continue to capitalize on our expertise in the information management services industry and to make additional acquisitions and investments in selected international markets. Our near-term growth objectives are comprised of a set of specific initiatives including: (1) increasing our focus on our core businesses with a targeted, low risk approach to improving our sales effectiveness and thereby increasing revenues with our existing customers by selling them new services and gaining net new customers; (2) higher growth in our international businesses as we expand our platform for selling core services and new services in higher growth markets; and (3) continuing to expand our services portfolio in the hybrid market to capture those larger, faster growing opportunities. Although the focus will be on growing our business organically, targeted acquisitions will continue to play a role in our overall growth strategy.

Introduction of New Products and Services

        We continue to expand our portfolio of products and services. Adding new products and services allows us to further penetrate our existing customer accounts and attract new customers in previously untapped markets.

Growth from Existing Customers

        Our existing customers' storage of physical records contributes to the growth of storage and storage-related services revenues because, on average, our existing customers generate additional cartons at a faster rate than old cartons are destroyed or permanently removed. However, during the current economic downturn, the combination of lower incoming volumes from existing customers, due in large part we believe to high unemployment rates and generally lower business activity, and increased destruction rates, as described above, has resulted in net volume growth from existing customers being negative at times in certain markets. We expect that after the economy has improved, our growth from existing customers will improve although we cannot give any assurance as to how much, if any, improvement we will realize. In order to maximize growth opportunities from existing customers, we seek to maintain high levels of customer retention by providing premium customer service through our local account management staff.

        Our sales coverage model is designed to identify and capitalize on incremental revenue opportunities by allocating our sales resources based on a sophisticated segmentation of our customer base and selling additional records management, data protection & recovery and information destruction services in new and existing markets within our existing customer relationships. We also seek to leverage existing business relationships with our customers by selling complementary services and products such as special project work, data restoration projects, fulfillment services, consulting services, technology services and product sales (including specially designed storage containers and related supplies).

Addition of New Customers

        Our sales forces are dedicated to three primary objectives: (1) establishing new customer account relationships; (2) generating additional revenue from existing customers in new and existing markets; and (3) expanding new and existing customer relationships by effectively selling a wide array of complementary services and products. In order to accomplish these objectives, our sales forces draw on our U.S. and international marketing organizations and senior management.

Growth through Acquisitions

        The goal of our current acquisition program is to supplement internal growth by continuing to expand our presence in targeted international markets, continuing to make fold-in acquisitions in North America and expanding our new service capabilities and industry-specific services. We have a successful record of acquiring and integrating information management services companies.

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Acquisitions in the North American Business Segment

        Although we substantially completed our geographic expansion in North America in 2003, we have since acquired and we continue to seek to acquire information management services businesses in the U.S. and Canada. Given the relatively smaller size of the acquisition targets in our core physical businesses in North America and our increased revenue base, future acquisitions are expected to be less significant to our overall North American Business segment revenue growth than in the past.

Acquisitions in the International Business Segment

        We substantially completed our geographic expansion in Europe and Latin America by 2003 and entered the Asia Pacific market in 2005. We expect to continue to make acquisitions and investments in information management services businesses in targeted markets outside North America. We have acquired and invested in, and seek to acquire and invest in, information management services companies in certain countries, and, more specifically, certain markets within such countries, where we believe there is potential for significant growth. Future acquisitions and investments will focus primarily on expanding priority markets in Continental Europe, Latin America and Asia, with continued leverage of our successful joint venture model.

        The experience, depth and strength of local management are particularly important in our international expansion and acquisition strategy. Since beginning our international expansion program in January 1999, we have, directly and through joint ventures, expanded our operations into more than 35 countries in Europe, Latin America and Asia Pacific. These transactions have taken, and may continue to take, the form of acquisitions of an entire business or controlling or minority investments with a long-term goal of full ownership. We believe our joint venture strategy, rather than an outright acquisition, may, in certain markets, better position us to expand the existing business. The local partners benefit from our expertise in the information management services industry, our multinational customer relationships, our access to capital and our technology, and we benefit from our local partners' knowledge of the market, relationships with local customers and their presence in the community. In addition to the criteria we use to evaluate North American acquisition candidates, when looking at an international investment or acquisition, we also evaluate the presence in the potential market of our existing customers as well as the risks uniquely associated with an international investment, including those risks described below.

        Our long-term goal is to acquire full ownership of each business in which we made a joint venture investment. Since 2008, we acquired the remaining minority equity ownership in our Greek (2010), Chinese (2010), Hong Kong (2010) and Singapore (2010) operations. In 2010, to better align our operations with our long-term international growth objectives, we sold our ownership stakes in Indonesia and Sri Lanka. We now own more than 97% of our international operations, measured as a percentage of consolidated revenues. In connection with the strategic review of certain of our international businesses, we sold our New Zealand operations in October 2011. Additionally, in December 2011, we committed to a plan to sell our Italian Business.

        Our international investments are subject to risks and uncertainties relating to the indigenous political, social, regulatory, tax and economic structures of other countries, as well as fluctuations in currency valuation, exchange controls, expropriation and governmental policies limiting returns to foreign investors.

        The amount of our revenues derived from international operations and other relevant financial data for fiscal years 2009, 2010 and 2011 are set forth in Note 9 to Notes to Consolidated Financial Statements. For the years ended December 31, 2009, 2010 and 2011, we derived approximately 31%, 32% and 34%, respectively, of our total revenues from outside of the U.S. As of December 31, 2009, 2010 and 2011, we had long-lived assets of approximately 34%, 36% and 36%, respectively, outside of the U.S.

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Competition

        We are the global leader in the physical information management services industry with operations in more than 35 countries. We compete with our current and potential customers' internal information management services capabilities. We can provide no assurance that these organizations will begin or continue to use an outside company such as Iron Mountain for their future information management services.

        We also compete with numerous information management services providers in all geographic areas where we operate. The physical information management services industry is highly competitive and includes thousands of competitors in North America and around the world. We believe that the majority of physical information management services companies serve a single city and are either owner-operated or ancillary to another business, such as a moving and storage company. We believe that competition for customers is based on price, reputation for reliability, quality of service and scope and scale of technology and that we generally compete effectively in each of these areas.

Alternative Technologies

        We derive most of our revenues from the storage of paper documents and storage-related services. This storage requires significant physical space. Alternative storage technologies exist, many of which require significantly less space than paper documents. These technologies include computer media, microform, CD-ROM and optical disk. To date, none of these technologies has replaced paper documents as the principal means for storing information. However, we can provide no assurance that our customers will continue to store most of their records as paper documents. We continue to provide additional services such as online backup, primarily through partnerships, designed to address our customers' need for efficient, cost-effective, high quality solutions for electronic records and information management.

Employees

        As of December 31, 2011, we employed over 8,800 employees in the U.S. and over 8,200 employees outside of the U.S. At December 31, 2011, an aggregate of 469 employees were represented by unions in California, Georgia and three provinces in Canada.

        All non-union employees are generally eligible to participate in our benefit programs, which include medical, dental, life, short and long-term disability, retirement/401(k) and accidental death and dismemberment plans. Unionized employees receive these types of benefits through their unions. In addition to base compensation and other usual benefits, all full-time employees participate in some form of incentive-based compensation program that provides payments based on revenues, profits, collections or attainment of specified objectives for the unit in which they work. Management believes that we have good relationships with our employees and unions. All union employees are currently under renewed labor agreements or operating under an extension agreement.

Insurance

        For strategic risk transfer purposes, we maintain a comprehensive insurance program with insurers that we believe to be reputable and that have adequate capitalization in amounts that we believe to be appropriate. Property insurance is purchased on a comprehensive basis, including flood and earthquake (including excess coverage), subject to certain policy conditions, sublimits and deductibles. Property is insured based upon the replacement cost of real and personal property, including leasehold improvements, business income loss and extra expense. Other types of insurance that we carry, which are also subject to certain policy conditions, sublimits and deductibles, include: medical, workers' compensation, general liability, umbrella, automobile, professional, warehouse legal liability and directors' and officers' liability policies. In 2002, we established a wholly owned Vermont domiciled

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captive insurance company as a subsidiary through which we retain and reinsure a portion of our property loss exposure.

        Our customer contracts usually contain provisions limiting our liability with respect to loss or destruction of, or damage to, records stored with us. Our liability under these contracts is often limited to a nominal fixed amount per item or unit of storage, such as per cubic foot. We cannot assure you that where we have limitation of liability provisions that they will be enforceable in all instances or would otherwise protect us from liability. Also, some of our contracts with large volume accounts and some of the contracts assumed in our acquisitions contain no such limits or contain higher limits. In addition to provisions limiting our liability, our standard storage and service contracts include a schedule setting forth the majority of the customer-specific terms, including storage and service pricing and service delivery terms. Our customers may dispute the interpretation of various provisions in their contracts. While we have had relatively few disputes with our customers with regard to the terms of their customer contracts, and most disputes to date have not been material, we can give you no assurance that we will not have material disputes in the future.

Environmental Matters

        Some of our current and formerly owned or leased properties were previously used by entities other than us for industrial or other purposes that involved the use, storage, generation and/or disposal of hazardous substances and wastes, including petroleum products. In some instances these properties included the operation of underground storage tanks or the presence of asbestos-containing materials. Although we have from time to time conducted limited environmental investigations and remedial activities at some of our former and current facilities, we have not undertaken an in-depth environmental review of all of our properties. We therefore may be liable for environmental costs and may be unable to sell, rent, mortgage or use contaminated real estate owned or leased by us. Under various federal, state and local environmental laws, we may be liable for environmental compliance and remediation costs to address contamination, if any, located at owned and leased properties as well as damages arising from such contamination, whether or not we know of, or were responsible for, the contamination, or the contamination occurred while we owned or leased the property. Environmental conditions for which we might be liable may also exist at properties that we may acquire in the future. In addition, future regulatory action and environmental laws may impose costs for environmental compliance that do not exist today.

        We transfer a portion of our risk of financial loss due to currently undetected environmental matters by purchasing an environmental impairment liability insurance policy, which covers all owned and leased locations. Coverage is provided for both liability and remediation costs.

Internet Website

        Our Internet address is www.ironmountain.com. Under the "For Investors" section on our Internet website, we make available through a hyperlink to a third party website, free of charge, our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (the "Exchange Act") as soon as reasonably practicable after such forms are filed with or furnished to the SEC. We are not including the information contained on or available through our website as a part of, or incorporating such information by reference into, this Annual Report on Form 10-K. Copies of our corporate governance guidelines, code of ethics and the charters of our audit, compensation, and nominating and governance committees are available on the "For Investors" section of our website, www.ironmountain.com, under the heading "Corporate Governance."

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Item 1A. Risk Factors.

        Our businesses face many risks. If any of the events or circumstances described in the following risks actually occur, our businesses, financial condition or results of operations could suffer, and the trading price of our debt or equity securities could decline. Our investors and prospective investors should consider the following risks and the information contained under the heading "Cautionary Note Regarding Forward-Looking Statements" before deciding to invest in our securities.

Operational Risks

Governmental and customer focus on data security could increase our costs of operations. We may not be able to fully offset these costs through increases in our rates. In addition, incidents in which we fail to protect our customers' information against security breaches could result in monetary damages against us and could otherwise damage our reputation, harm our businesses and adversely impact our results of operations.

        In reaction to publicized incidents in which electronically stored information has been lost, illegally accessed or stolen, almost all states have adopted breach of data security statutes or regulations that require notification to consumers if the security of their personal information, such as social security numbers, is breached. In addition, certain federal laws and regulations affecting financial institutions, health care providers and plans and others impose requirements regarding the privacy and security of information maintained by those institutions as well as notification to persons whose personal information is accessed by an unauthorized third party. Some of these laws and regulations provide for civil fines in certain circumstances. One state has adopted regulations requiring every company that maintains or stores personal information to adopt a comprehensive written information security program. In some instances European data protection authorities have issued large fines as a result of data security breaches.

        Continued governmental focus on data security may lead to additional legislative action. For example, the U.S. Congress is considering legislation that would expand the federal data breach notification requirement beyond the financial and medical fields. In addition, the European Commission has proposed a new regulation and directive that will, if adopted, supersede Directive 95/46/EC, which has governed the processing of personal data since 1995. It is anticipated that the new proposal will significantly alter the security and privacy obligations of entities, such as Iron Mountain, that process data of citizens of members of the European Union. The continued emphasis on information security may lead customers to request that we take additional measures to enhance security and assume higher liability under our contracts. We have experienced incidents in which customers' backup tapes or other records have been lost, and we have been informed by customers that some of the incidents involved the loss of personal information, resulting in monetary damages which we have paid. As a result of legislative initiatives and client demands, we may have to modify our operations with the goal of further improving data security. Any such modifications may result in increased expenses and operating complexity, and we may be unable to increase the rates we charge for our services sufficiently to offset any increased expenses.

        In addition to increases in the costs of operations or potential liability that may result from a heightened focus on data security, our reputation may be damaged by any compromise of security, accidental loss or theft of customer data in our possession. We believe that establishing and maintaining a good reputation is critical to attracting and retaining customers. If our reputation is damaged, we may become less competitive, which could negatively impact our businesses, financial condition or results of operations.

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Our customers may shift from paper storage to alternative technologies that require less physical space.

        We derive most of our revenues from the storage of paper documents and storage related services. This storage requires significant physical space, which we provide through our owned and leased facilities. Alternative storage technologies exist, many of which require significantly less space than paper documents. These technologies include computer media, microform, CD-ROM and optical disk. U.S. federal government initiatives have resulted in many health care providers adopting programs to evolve to greater use of electronic medical records. In addition, as alternative technologies are adopted, storage related services may decline as the physical records we store become less active and more archived. We can provide no assurance that our customers will continue to store most of their records in paper documents format. The adoption of alternative technologies may also result in decreased demand for services related to the paper documents we store. A significant shift by our customers to storage of data through non-paper based technologies, whether now existing or developed in the future, could adversely affect our businesses.

Our customer contracts may not always limit our liability and may sometimes contain terms that could lead to disputes in interpretation.

        Our customer contracts usually contain provisions limiting our liability with respect to loss or destruction of, or damage to, records or information stored with us. Our liability under physical storage contracts is often limited to a nominal fixed amount per item or unit of storage, such as per cubic foot. Our liability under our hybrid services and other service contracts is often limited to a percentage of annual revenue under the contract. We cannot assure you that where we have limitation of liability provisions they will be enforceable in all instances or, if enforceable, that they would otherwise protect us from liability. In addition to provisions limiting our liability, our standard storage and service contracts include a schedule setting forth the majority of the customer-specific terms, including storage and service pricing and service delivery terms. Our customers may dispute the interpretation of various provisions in their contracts. While we have had relatively few disputes with our customers with regard to the terms of their customer contracts, and most disputes to date have not been material, we can give you no assurance that we will not have material disputes in the future.

We face competition for customers.

        We compete, in some of our business lines, with our current and potential customers' internal information management services capabilities. These organizations may not begin or continue to use a third party, such as Iron Mountain, for their future information management services needs. We also compete with multiple information management services providers in all geographic areas where we operate; our current or potential customers may choose to use those competitors instead of us.

Our customers may be constrained in their ability to pay for services or require fewer services.

        Continued economic weakness in the markets where we operate may cause some customers to postpone projects for which they would otherwise retain our services and may, in some instances, cause customers to reduce or forgo our services. Many of our largest customers are financial institutions that have been particularly affected by the economic downturn; their condition may lead them to reduce their use of our services. In addition, customers may increasingly seek protection under bankruptcy laws, potentially affecting not only future business but also our ability to collect accounts receivable.

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Failure to comply with certain regulatory and contractual requirements under our U.S. Government General Services Administration Multiple Award Schedule contracts could adversely affect our revenues, operating results and financial position.

        Selling our services to the U.S. Government subjects us to certain regulatory and contractual requirements. Failure to comply with these requirements could subject us to investigations, price reductions, up to treble damages, and civil penalties. Noncompliance with certain regulatory and contractual requirements could also result in us being suspended or barred from future U.S. Government contracting. Any of these outcomes could have a material adverse effect on our revenues, operating results and financial position.

We may be subject to certain costs and potential liabilities associated with the real estate required for our business.

        Because our business is heavily dependent on real estate, we face special risks attributable to the real estate we own or lease. Such risks include:

•

variable occupancy costs and difficulty locating suitable sites due to fluctuations in real estate markets;

•

uninsured losses or damage to our storage facilities due to an inability to obtain full coverage on a cost-effective basis for some casualties, such as earthquakes, or any coverage for certain losses, such as losses from riots or terrorist activities;

•

inability to use our real estate holdings effectively and costs associated with vacating or consolidating facilities if the demand for physical storage were to diminish because our customers choose other storage technologies; and

•

liability under environmental laws for the costs of investigation and cleanup of contaminated real estate owned or leased by us, whether or not (i) we know of, or were responsible for, the contamination, or (ii) the contamination occurred while we owned or leased the property.

        Some of our current and formerly owned or leased properties were previously used by entities other than us for industrial or other purposes that involved the use, storage, generation and/or disposal of hazardous substances and wastes, including petroleum products. In some instances this prior use involved the operation of underground storage tanks or the presence of asbestos-containing materials. Although we have from time to time conducted limited environmental investigations and remedial activities at some of our former and current facilities, we have not undertaken an in-depth environmental review of all of our properties. We therefore may be potentially liable for environmental costs like those discussed above and may be unable to sell, rent, mortgage or use contaminated real estate owned or leased by us. Environmental conditions for which we might be liable may also exist at properties that we may acquire in the future. In addition, future regulatory action and environmental laws may impose costs for environmental compliance that do not exist today.

International operations may pose unique risks.

        As of December 31, 2011, we provided services in more than 35 countries outside the U.S. As part of our growth strategy, we expect to continue to acquire or invest in information management services businesses in select foreign markets. International operations are subject to numerous risks, including:

•

the impact of foreign government regulations and U.S. regulations that apply to us wherever we operate;

•

the volatility of certain foreign economies in which we operate;

•

political uncertainties;

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•

unforeseen liabilities, particularly within acquired businesses;

•

the risk that the business partners upon whom we depend for technical assistance or management and acquisition expertise outside of the U.S. will not perform as expected;

•

differences in business practices; and

•

foreign currency fluctuations.

        In particular, our net income can be significantly affected by fluctuations in currencies associated with certain intercompany balances of our foreign subsidiaries owed to us and between our foreign subsidiaries.

We may be subject to claims that our technology violates the intellectual property rights of a third party.

        Third parties may have legal rights (including ownership of patents, trade secrets, trademarks and copyrights) to ideas, materials, processes, names or original works that are the same or similar to those we use. Third parties may bring claims, or threaten to bring claims, against us that allege that their intellectual property rights are being infringed or violated by our use of intellectual property. Litigation or threatened litigation could be costly and distract our senior management from operating our business. Further, if we cannot establish our right or obtain the right to use the intellectual property on reasonable terms, we may be required to develop alternative intellectual property at our expense to mitigate potential harm.

Changing fire and safety standards may result in significant expense in certain jurisdictions.

        As of December 31, 2011, we operated 932 records management and off-site data protection facilities worldwide, including 615 in the United States alone. Many of these facilities were built and outfitted by third parties and added to Iron Mountain's real estate portfolio as part of acquisitions. Some of these facilities contain fire suppression and safety features that are different from our current specifications and current standards for new facilities, although we believe all of our facilities were constructed in compliance with laws and regulations in effect at the time of their construction or outfitting. Where we believe the fire suppression and safety features of a facility require improvement, we will develop and implement a plan to remediate the issue. In some instances local authorities having jurisdiction may take the position that our fire suppression and safety features in a particular facility are insufficient and require additional measures which may involve considerable expense to Iron Mountain. If additional fire safety and suppression measures were required at a large number of our facilities, this could negatively impact our business, financial condition or results of operations.

Fluctuations in commodity prices may affect our operating revenues and results of operations.

        Our operating revenues and results of operations are impacted by significant changes in commodity prices. Our secure shredding operations generate revenue from the sale of shredded paper to recyclers. We generate additional revenue when the price of diesel fuel rises above certain predetermined rates through a customer surcharge. As a result, significant declines in paper and diesel fuel prices may negatively impact our revenues and results of operations while increases in other commodity prices, including steel, may negatively impact our results of operations.

Unexpected events could disrupt our operations and adversely affect our results of operations.

        Unexpected events, including fires or explosions at our facilities, natural disasters such as hurricanes and earthquakes, war or terrorist activities, unplanned power outages, supply disruptions and failure of equipment or systems, could adversely affect our results of operations. These events could result in customer service disruption, physical damages to one or more key operating facilities, the

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temporary closure of one or more key operating facilities or the temporary disruption of information systems.

Attacks on our internal information technology systems could damage our reputation, harm our businesses and adversely impact our results of operations.

        Our reputation for providing secure information storage to customers is critical to the success of our business. We have previously faced attempts by hackers and similar unauthorized users to gain access to our information technology systems and expect to continue to face such attempts. Although we seek to prevent, detect and investigate these security incidents and have taken steps to prevent such security breaches, there can be no assurance that attacks by unauthorized users will not be attempted in the future or that our security measures will be effective. A successful breach of the security of our information technology systems could lead to theft or misuse of our customers' proprietary or confidential information and result in third party claims against us and reputational harm. If our reputation is damaged, we may become less competitive, which could negatively impact our businesses, financial condition or results of operations.

Risks Relating to our Strategic Review

No guaranty that any of the alternative financing, capital, and tax strategies being evaluated, including a potential conversion to a REIT, will be implemented or will be successful if implemented.

        In April 2011 we entered into a settlement agreement with Elliott Associates, L.P. and Elliott International, L.P. in which we agreed to form a special committee of our board of directors to, among other things, evaluate ways to maximize stockholder value through alternative financing, capital, and tax strategies (the "Strategic Review"), including evaluating a potential conversion to a real estate investment trust (a "REIT"). The Strategic Review has required, and may continue to require, the expenditure of significant time and resources by us. The Strategic Review process is complex and may divert management's time and attention. We may not pursue any of the alternative strategies being evaluated, including a potential conversion to a REIT, and we can provide no assurances that any strategy we pursue will be successfully implemented or achieve the intended benefits. Finally, stockholder litigation that may arise in connection with the Strategic Review may result in significant costs for defense or liability. These consequences, alone or in combination, may have a material adverse effect on our business, financial condition or results of operations.

Risks Relating to Our Common Stock

No Guaranty of Dividend Payments or Stock Repurchases.

        Our board of directors approved a share repurchase program and adopted a dividend policy under which we intend to pay quarterly cash dividends on our common stock. In addition, on April 19, 2011, we announced our intention to make stockholder payouts of approximately $2.2 billion through 2013, with approximately $1.2 billion of capital returned to stockholders by May 2012 through a combination of share repurchases, ongoing quarterly dividends and potential one-time dividends. Although we are committed to returning capital to stockholders and returned $1.15 billion between April 19, 2011 and February 10, 2012, any determinations by us to repurchase our common stock or pay cash dividends on our common stock in the future, as well as the form and mix of such stockholder payouts, will be based primarily upon our financial condition, results of operations, business requirements and strategy, the price of our common stock (in the case of the repurchase program) and our board of directors' continuing determination that the repurchase program and the declaration of dividends under the dividend policy are in the best interests of our stockholders and are in compliance with all laws and agreements applicable to the repurchase and dividend programs. The terms of our credit agreement

19

and our indentures contain provisions permitting the payment of cash dividends and stock repurchases subject to certain limitations.

Risks Relating to Our Indebtedness

Our substantial indebtedness could adversely affect our financial health and prevent us from fulfilling our obligations under our various debt instruments.

        We have a significant amount of indebtedness. The following table shows important credit statistics as of December 31, 2011 (dollars in millions):

Total long-term debt	$	3,353.6
Total equity	$	1,254.3
Debt to equity ratio		2.67	X

        Our substantial indebtedness could have important consequences to you. Our indebtedness may increase as we continue to borrow under existing and future credit arrangements in order to finance future acquisitions and for general corporate purposes, which would increase the associated risks. These risks include:

•

inability to satisfy our obligations with respect to our various debt instruments;

•

inability to adjust to adverse economic conditions;

•

inability to fund future working capital, capital expenditures, acquisitions and other general corporate requirements, including possible required repurchases of our various indebtedness, the payment of quarterly dividends or the repurchase of shares of our common stock;

•

limits on our flexibility in planning for, or reacting to, changes in our business and the information management services industry;

•

limits on future borrowings under our existing or future credit arrangements, which could affect our ability to pay our indebtedness or to fund our other liquidity needs;

•

inability to generate sufficient funds to cover required interest payments; and

•

restrictions on our ability to refinance our indebtedness on commercially reasonable terms.

Restrictive loan covenants may limit our ability to pursue our growth strategy.

        Our credit facility and our indentures contain covenants restricting or limiting our ability to, among other things:

•

incur additional indebtedness;

•

pay dividends or make other restricted payments;

•

make asset dispositions;

•

create or permit liens; and

•

make capital expenditures and other investments.

        These restrictions may adversely affect our ability to pursue our acquisition and other growth strategies.

20

We may not have the ability to raise the funds necessary to finance the repurchase of outstanding senior subordinated indebtedness upon a change of control event as required by our indentures.

        Upon the occurrence of a change of control, we will be required to offer to repurchase all outstanding senior subordinated indebtedness. However, it is possible that we will not have sufficient funds at the time of the change of control to make the required repurchase of the notes or that restrictions in our revolving credit facility will not allow such repurchases. In addition, certain important corporate events, such as leveraged recapitalizations that would increase the level of our indebtedness, would not constitute a "change of control" under our indentures.

Since Iron Mountain is a holding company, our ability to make payments on our various debt obligations depends in part on the operations of our subsidiaries.

        Iron Mountain is a holding company, and substantially all of our assets consist of the stock of our subsidiaries and substantially all of our operations are conducted by our direct and indirect wholly owned subsidiaries. As a result, our ability to make payments on our various debt obligations will be dependent upon the receipt of sufficient funds from our subsidiaries. However, our various debt obligations are guaranteed, on a joint and several and full and unconditional basis, by most, but not all, of our direct and indirect wholly owned U.S. subsidiaries.

Acquisition and Expansion Risks

Failure to manage our growth may impact operating results.

        If we succeed in expanding our existing businesses, or in moving into new areas of business, that expansion may place increased demands on our management, operating systems, internal controls and financial and physical resources. If not managed effectively, these increased demands may adversely affect the services we provide to existing customers. In addition, our personnel, systems, procedures and controls may be inadequate to support future operations. Consequently, in order to manage growth effectively, we may be required to increase expenditures to increase our physical resources, expand, train and manage our employee base, improve management, financial and information systems and controls, or make other capital expenditures. Our results of operations and financial condition could be harmed if we encounter difficulties in effectively managing the budgeting, forecasting and other process control issues presented by future growth.

Failure to successfully integrate acquired operations could negatively impact our future results of operations.

        The success of any acquisition depends in part on our ability to integrate the acquired company. The process of integrating acquired businesses may involve unforeseen difficulties and may require a disproportionate amount of our management's attention and our financial and other resources. We can give no assurance that we will ultimately be able to effectively integrate and manage the operations of any acquired business. The failure to successfully integrate the cultures, operating systems, procedures and information technologies of an acquired business could have a material adverse effect on our results of operations.

We may be unable to continue our international expansion.

        Our growth strategy involves expanding operations in international markets, and we expect to continue this expansion. Europe, Latin America and Australia have been our primary areas of focus for international expansion, and we have expanded into the Asia Pacific region to a lesser extent. We have entered into joint ventures and have acquired all or a majority of the equity in information management services businesses operating in these areas and may acquire other information management services businesses in the future.

21

        This growth strategy involves risks. We may be unable to pursue this strategy in the future at the desired pace or at all. For example, we may be unable to:

•

identify suitable companies to acquire or invest in;

•

complete acquisitions on satisfactory terms;

•

successfully expand our infrastructure and sales force to support growth;

•

incur additional debt necessary to acquire suitable companies if we are unable to pay the purchase price out of working capital, common stock or other equity securities; or

•

enter into successful business arrangements for technical assistance or management expertise outside of the U.S.

        We also compete with other information management services providers for companies to acquire. Some of our competitors may possess substantial financial and other resources. If any such competitor were to devote additional resources to pursue such acquisition candidates or focus its strategy on our international markets, the purchase price for potential acquisitions or investments could rise, competition in international markets could increase and our results of operations could be adversely affected.

Item 1B. Unresolved Staff Comments.

        None.

Item 2. Properties.

        As of December 31, 2011, we conducted operations through 746 leased facilities and 236 facilities that we own. Our facilities are divided among our reportable segments as follows: North American Business (643), International Business (338), and Corporate (1). These facilities contain a total of 63.7 million square feet of space. Facility rent expense was $216.1 million and $219.4 million for the years ended December 31, 2010 and 2011, respectively. The leased facilities typically have initial lease terms of five to ten years with one or more five-year options to extend. In addition, some of the leases contain either a purchase option or a right of first refusal upon the sale of the property. Our facilities are located throughout North America, Europe, Latin America and Asia Pacific, with the largest number of facilities in California, Florida, New York, New Jersey, Texas, Canada and the United Kingdom. We believe that the space available in our facilities is adequate to meet our current needs, although future growth may require that we acquire additional real property either by leasing or purchasing. See Note 10 to Notes to Consolidated Financial Statements for information regarding our minimum annual lease commitments.

Item 3. Legal Proceedings.

        In August 2010, we were named as a defendant in a patent infringement suit filed in the U.S. District Court for the Eastern District of Texas by Oasis Research, LLC. The plaintiff alleges that the technology found in our Connected and LiveVault products infringed certain U.S. patents owned by the plaintiff and seeks an unspecified amount of damages. A final pre-trial conference has been scheduled for October 12, 2012. We expect the court to establish a trial date during the pre-trial conference. As part of the sale of our Digital Business discussed at Note 14 to Notes to Consolidated Financial Statements, our Connected and LiveVault products were sold to Autonomy and Autonomy has assumed this obligation and the defense of this litigation and has agreed to indemnify us against any losses.

        In July 2006, we experienced a significant fire in a leased records and information management facility in London, England, that resulted in the complete destruction of the facility and its contents.

22

The London Fire Brigade ("LFB") issued a report in which it concluded that the fire resulted either from human agency, i.e., arson, or an unidentified ignition device or source, and its report to the Home Office concluded that the fire resulted from a deliberate act. The LFB also concluded that the installed sprinkler system failed to control the fire because the primary electric fire pump was disabled prior to the fire and the standby diesel fire pump was disabled in the early stages of the fire by third-party contractors. We have received notices of claims from customers or their subrogated insurance carriers under various theories of liability arising out of lost data and/or records as a result of the fire. Certain of those claims have resulted in litigation in courts in the United Kingdom. We deny any liability in respect of the London fire, and we have referred these claims to our excess warehouse legal liability insurer, which has been defending them to date under a reservation of rights. Certain of the claims have been settled for nominal amounts, typically one to two British pounds sterling per carton, as specified in the contracts, which amounts have been or will be reimbursed to us from our primary property insurer. We believe we carry adequate property and liability insurance related to this incident.

General

        In addition to the matters discussed above, 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. In the opinion of management, other than discussed above, no material legal proceedings are pending to which we, or any of our properties, are subject.

Item 4. Mine Safety Disclosures.

        None.

23

PART II

Item 5. Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

        Our common stock is traded on the New York Stock Exchange (the "NYSE") under the symbol "IRM." The following table sets forth the high and low sale prices on the NYSE, for the years 2010 and 2011:

	Sale Prices
	High		Low
2010
First Quarter	$	27.76	$	21.32
Second Quarter		28.49		22.44
Third Quarter		25.81		20.09
Fourth Quarter		25.42		19.93
2011
First Quarter	$	31.53	$	24.28
Second Quarter		35.50		31.18
Third Quarter		35.79		27.68
Fourth Quarter		33.70		28.34

        The closing price of our common stock on the NYSE on February 10, 2012 was $30.47. As of February 10, 2012, there were 539 holders of record of our common stock. We believe that there are more than 50,500 beneficial owners of our common stock.

        In February 2010, our board of directors adopted a dividend policy under which we intend to pay quarterly cash dividends on our common stock. Declaration and payment of future quarterly dividends is at the discretion of our board of directors. In 2010 and 2011, our board of directors declared the following dividends:

Declaration Date	Dividend Per Share		Record Date		Total Amount (in thousands)		Payment Date
March 25, 2010	$	0.0625		March 25, 2010	$	12,720		April 15, 2010
June 4, 2010		0.0625		June 25, 2010		12,641		July 15, 2010
September 15, 2010		0.0625		September 28, 2010		12,532		October 15, 2010
December 10, 2010		0.1875		December 27, 2010		37,514		January 14, 2011
March 11, 2011		0.1875		March 25, 2011		37,601		April 15, 2011
June 10, 2011		0.2500		June 24, 2011		50,694		July 15, 2011
September 8, 2011		0.2500		September 23, 2011		46,877		October 14, 2011
December 1, 2011		0.2500		December 23, 2011		43,180		January 13, 2012

        Our board of directors has authorized up to $1.2 billion in repurchases of our common stock. As of February 10, 2012, we have repurchased approximately $1.1 billion of our common stock under such authorization. Any determinations by us to repurchase our common stock or pay cash dividends on our common stock in the future will be based primarily upon our financial condition, results of operations, business requirements, the price of our common stock (in the case of the repurchase program) and our board of directors' continuing determination that the repurchase program and the declaration of dividends under the dividend policy are in the best interests of our stockholders and are in compliance with all laws and agreements applicable to the repurchase and dividend programs. The terms of our credit agreement and our indentures contain provisions permitting the payment of cash dividends and stock repurchases subject to certain limitations.

24

Unregistered Sales of Equity Securities and Use of Proceeds

        There were no sales of unregistered securities for the three months ended December 31, 2011. The following table sets forth our common stock repurchased for the three months ended December 31, 2011:

Issuer Purchases of Equity
Securities

Period(1)	Total Number of Shares Purchased(2)		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(3)		Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs(4) (In Thousands)
October 1, 2011–October 31, 2011		3,650,195	$	30.70		3,650,195	$	428,226
November 1, 2011–November 30, 2011		6,078,525	$	29.68		6,078,525	$	247,845
December 1, 2011–December 31, 2011		4,923,158	$	29.89		4,923,158	$	100,701
Total		14,651,878	$	30.00		14,651,878

(1)

Information is based on trade dates of repurchase transactions.

(2)

Consists of shares of our common stock, par value $.01 per share. All repurchases were made pursuant to an announced plan. All repurchases were made in open market transactions under the terms of a Rule 10b5-1 plan adopted by us.

(3)

In February 2010, our board of directors approved a share repurchase program authorizing up to $150.0 million in repurchases of our common stock, and in October 2010, our board of directors authorized up to an additional $200.0 million of such purchases. In May 2011, our board of directors authorized up to an additional $850.0 million of such purchases, for a total authorization of $1.2 billion. Our board of directors did not specify an expiration date for this program.

(4)

Dollar amounts represented reflect $1.2 billion total authorization minus the total aggregate amount purchased in such month and all prior months during which the repurchase program was in effect and exclude commissions paid in connection therewith.

25

Item 6. Selected Financial Data.

        The following selected consolidated statements of operations, balance sheet and other data have been derived from our audited consolidated financial statements (see footnote (1) below). The selected consolidated financial and operating information set forth below, giving effect to stock splits, should be read in conjunction with "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" and our Consolidated Financial Statements and the Notes thereto included elsewhere in this filing.

	Year Ended December 31,
	2007(1)			2008(1)			2009(1)			2010(1)(2)			2011
	(in thousands, except per share data)
Consolidated Statements of Operations Data:
Revenues:
Storage	$	1,362,161		$	1,496,194		$	1,533,792		$	1,598,718		$	1,682,990
Service		1,204,367			1,329,240			1,240,592			1,293,631			1,331,713
Total Revenues		2,566,528			2,825,434			2,774,384			2,892,349			3,014,703
Operating Expenses:
Cost of sales (excluding depreciation and amortization)		1,212,516			1,311,891			1,201,871			1,192,862			1,245,200
Selling, general and administrative		677,847			759,264			749,934			772,811			834,591
Depreciation and amortization		220,217			254,497			277,186			304,205			319,499
Intangible Impairments(3)		—			—			—			85,909			46,500
(Gain) Loss on disposal/write-down of property, plant and equipment, net		(5,463	)		7,522			168			(10,987	)		(2,286	)
Total Operating Expenses		2,105,117			2,333,174			2,229,159			2,344,800			2,443,504
Operating Income		461,411			492,260			545,225			547,549			571,199
Interest Expense, Net		214,147			219,989			212,545			204,559			205,256
Other Expense (Income), Net		4,103			31,505			(12,599	)		8,768			13,043
Income from Continuing Operations Before Provision for Income Taxes		243,161			240,766			345,279			334,222			352,900
Provision for Income Taxes		72,617			146,122			113,762			167,483			106,488
Income from Continuing Operations		170,544			94,644			231,517			166,739			246,412
Loss from Discontinued Operations, Net of Tax		(17,858	)		(14,889	)		(12,138	)		(219,417	)		(47,439	)
Gain on Sale of Discontinued Operations, Net of Tax		—			—			—			—			200,619
Net Income (Loss)		152,686			79,755			219,379			(52,678	)		399,592
Less: Net Income (Loss) Attributable to Noncontrolling Interests		920			(94	)		1,429			4,908			4,054
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	151,766		$	79,849		$	217,950		$	(57,586	)	$	395,538
(footnotes follow)

26

	Year Ended December 31,
	2007(1)			2008(1)			2009(1)			2010(1)(2)			2011
	(in thousands, except per share data)
Earnings (Losses) per Share—Basic:
Income from Continuing Operations	$	0.85		$	0.47		$	1.14		$	0.83		$	1.27
Total Loss (Income) from Discontinued Operations	$	(0.09	)	$	(0.07	)	$	(0.06	)	$	(1.09	)	$	0.79
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	0.76		$	0.40		$	1.07		$	(0.29	)	$	2.03
Earnings (Losses) per Share—Diluted:
Income from Continuing Operations	$	0.84		$	0.47		$	1.13		$	0.83		$	1.26
Total Loss (Income) from Discontinued Operations	$	(0.09	)	$	(0.07	)	$	(0.06	)	$	(1.09	)	$	0.78
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	0.75		$	0.39		$	1.07		$	(0.29	)	$	2.02
Weighted Average Common Shares Outstanding—Basic		199,938			201,279			202,812			201,991			194,777
Weighted Average Common Shares Outstanding—Diluted		202,062			203,290			204,271			201,991			195,938
Dividends Declared per Common Share(4)	$	—		$	—		$	—		$	0.3750		$	0.9375
(footnotes follow)

	Year Ended December 31,
	2007(1)			2008(1)			2009(1)			2010(1)(2)			2011
	(In thousands)
Other Data:
Adjusted OIBDA(5)	$	676,165		$	754,279		$	822,579		$	926,676		$	934,912
Adjusted OIBDA Margin(5)		26.3	%		26.7	%		29.6	%		32.0	%		31.0	%
Ratio of Earnings to Fixed Charges		1.8x			1.8x			2.2x			2.2x			2.2x

	As of December 31,
	2007		2008		2009		2010(2)		2011
	(in thousands)
Consolidated Balance Sheet Data:
Cash and Cash Equivalents	$	125,607	$	278,370	$	446,656	$	258,693	$	179,845
Total Assets		6,308,949		6,359,291		6,851,157		6,416,393		6,041,258
Total Long-Term Debt (including Current Portion of Long-Term Debt)		3,263,998		3,240,450		3,248,649		3,008,207		3,353,588
Total Equity(1)		1,815,173		1,814,769		2,150,760		1,952,865		1,254,256
(footnotes follow)

27

Reconciliation of Adjusted OIBDA to Operating Income and Net Income (Loss):

	Year Ended December 31,
	2007(1)			2008(1)			2009(1)			2010(1)(2)			2011
	(in thousands)
Adjusted OIBDA(5)	$	676,165		$	754,279		$	822,579		$	926,676		$	934,912
Less: Depreciation and Amortization		220,217			254,497			277,186			304,205			319,499
Intangible Impairments(3)		—			—			—			85,909			46,500
(Gain) Loss on Disposal/Write-down of Property, Plant and Equipment, Net		(5,463	)		7,522			168			(10,987	)		(2,286	)
Operating Income		461,411			492,260			545,225			547,549			571,199
Less: Interest Expense, Net		214,147			219,989			212,545			204,559			205,256
Other Expense (Income), Net		4,103			31,505			(12,599	)		8,768			13,043
Provision for Income Taxes		72,617			146,122			113,762			167,483			106,488
Loss from Discontinued Operations, Net of Tax		17,858			14,889			12,138			219,417			47,439
Gain on Sale of Discontinued Operations, Net of Tax		—			—			—			—			(200,619	)
Net Income (Loss) Attributable to Noncontrolling Interests		920			(94	)		1,429			4,908			4,054
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	151,766		$	79,849		$	217,950		$	(57,586	)	$	395,538
(footnotes follow)

(1)

Revenue and Adjusted OIBDA for the years ended December 31, 2007, 2008, 2009 and 2010 have been restated to reflect a reduction in revenues of $2,183, $3,597, $4,813 and $6,023, respectively, to correct billing errors made in connection with a government contract as more fully described in Notes 2.y. and 10.h. to Notes to Consolidated Financial Statements. The impact to income from continuing operations and net income is a reduction of $1,328, $2,188, $2,927 and $3,686, respectively, for the after tax impact of the revenue errors for the years ended December 31, 2007, 2008, 2009 and 2010, respectively.

(2)

Prior to January 1, 2010, the financial position and results of operations of the operating subsidiaries of Iron Mountain Europe (Group) Limited (collectively referred to as "IME"), our European business, were consolidated based on IME's fiscal year ended October 31. Effective January 1, 2010, we changed the fiscal year-end (and the reporting period for consolidation purposes) of IME to coincide with Iron Mountain Incorporated's fiscal year-end of December 31. We believe that the change in accounting principle related to the elimination of the two-month reporting lag for IME is preferable because it will result in more contemporaneous reporting of events and results related to IME. In accordance with applicable accounting literature, a change in subsidiary year-end is treated as a change in accounting principle and requires retrospective application. The impact of the change was not material to the results of operations for the previously reported annual and interim periods after January 1, 2007, and, thus, those results have not been revised. There is, however, a charge of $4.7 million recorded to other (income) expense, net in the year ended December 31, 2010 to recognize the immaterial difference arising from the change. There were no significant infrequent or unusual items in the IME two-month period ended December 31, 2008 and 2009.

(3)

For the year ended December 31, 2010, we recorded a non-cash goodwill impairment charge of $85,909 related to our technology escrow services business, which we continue to own and operate

28

and which was previously reflected in the former worldwide digital business segment and is now reflected as a component of the North American Business segment. For the year ended December 31, 2010, we recorded a $197,876 non-cash goodwill impairment charge related to our former worldwide digital business that is included in loss from discontinued operations, net of tax. For the year ended December 31, 2011, we recorded a non-cash goodwill impairment charge of $46,500 in our Western Europe reporting unit, which is a component of the International Business segment. See Note 2.g. to Notes to Consolidated Financial Statements.

(4)

In February 2010, our board of directors adopted a dividend policy under which we began paying quarterly dividends on our common stock. See "Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities."

(5)

Adjusted OIBDA is defined as operating income before depreciation, amortization, intangible impairments and (gain) loss on disposal/write-down of property, plant and equipment, net. Adjusted OIBDA Margin is calculated by dividing Adjusted OIBDA by total revenues. For a more detailed definition and reconciliation of Adjusted OIBDA and a discussion of why we believe these measures provide relevant and useful information to our current and potential investors, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Measures."

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion should be read in conjunction with "Item 6. Selected Financial Data" and the Consolidated Financial Statements and Notes thereto and the other financial and operating information included elsewhere in this filing.

        This discussion contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 and in other federal securities laws. See "Cautionary Note Regarding Forward-Looking Statements" on page ii of this filing and "Item 1A. Risk Factors" beginning on page 15 of this filing.

Overview

        In August 2010, we divested the domain name management product line (the "Domain Name Product Line") of our digital business. On June 2, 2011, we completed the sale (the "Digital Sale") of our online backup and recovery, digital archiving and eDiscovery solutions businesses (the "Digital Business") to Autonomy, pursuant to a purchase and sale agreement dated as of May 15, 2011 among Iron Mountain Incorporated ("IMI"), certain subsidiaries of IMI and Autonomy (the "Digital Sale Agreement"). In the Digital Sale, Autonomy purchased (i) the shares of certain of IMI's subsidiaries through which IMI conducted the Digital Business and (ii) certain assets of IMI and its subsidiaries relating to our Digital Business. The financial position, operating results and cash flows of the Domain Name Product Line and the Digital Business, for all periods presented in this Annual Report on Form 10-K, including the gains on the sales, have been reported as discontinued operations for financial reporting purposes. IMI retained its technology escrow services business which had previously been reported in the former worldwide digital business segment along with the Digital Business and the Domain Name Product Line. The technology escrow services business is now reported in the North American Business segment. Additionally, on October 3, 2011, we sold our records management business in New Zealand (the "New Zealand Business"). The financial position, operating results and cash flows of the New Zealand Business, including the gain on the sale, for all periods presented, have been reported as discontinued operations for financial reporting purposes. Also, in December 2011, we committed to a plan to sell the Italian Business. The financial position, operating results and cash flows of the Italian Business, for all periods presented, have been reported as discontinued operations for financial reporting purposes. See Note 14 to Notes to Consolidated Financial Statements.

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        Consolidated statements of operations amounts for 2009 and 2010 were restated in connection with the government contract billing error more fully discussed in Notes 2.y. and 10.h. to Notes to Consolidated Financial Statements. As a result, 2009 and 2010 consolidated statements of operations amounts related to: (a) storage, (b) service, (c) total revenues, (d) operating income, (e) income from continuing operations before provision for income taxes, (f) provision for income taxes, (g) income from continuing operations, (h) net income (loss) and (g) net income (loss) attributable to Iron Mountain Incorporated have been changed throughout management's discussion and analysis to conform to the restated figures.

        Our revenues consist of storage revenues as well as service revenues. Storage revenues, which are considered a key performance indicator for the information management services industry, consist primarily of recurring periodic charges related to the storage of materials or data (generally on a per unit basis) that are typically retained by customers for many years and have accounted for over 55% of total consolidated revenues in each of the last three years. Our annual revenues from these fixed periodic storage fees have grown for 23 consecutive years. Service revenues are comprised of charges for related core service activities and a wide array of complementary products and services. Included in core service revenues are: (1) the handling of records, including the addition of new records, temporary removal of records from storage, refiling of removed records and the destruction of records; (2) courier operations, consisting primarily of the pickup and delivery of records upon customer request; (3) secure shredding of sensitive documents; and (4) other recurring services, including hybrid services and recurring project revenues. Our complementary services revenues include special project work, customer termination and permanent withdrawal fees, data restoration projects, fulfillment services, consulting services, technology services and product sales (including specially designed storage containers and related supplies). A by-product of our secure shredding and destruction services is the sale of recycled paper (included in complementary services revenues), the price of which can fluctuate from period to period, adding to the volatility and reducing the predictability of that revenue stream. Our consolidated revenues are also subject to variations caused by the net effect of foreign currency translation on revenue derived from outside the U.S. For the years ended December 31, 2009, 2010 and 2011, we derived approximately 31%, 32% and 34%, respectively, of our total revenues from outside the U.S.

        We recognize revenue when the following criteria are met: persuasive evidence of an arrangement exists, services have been rendered, the sales price is fixed or determinable and collectability of the resulting receivable is reasonably assured. Storage and service revenues are recognized in the month the respective storage or service is provided, and customers are generally billed on a monthly basis on contractually agreed-upon terms. Amounts related to future storage or prepaid service contracts for customers where storage fees or services are billed in advance are accounted for as deferred revenue and recognized ratably over the applicable storage or service period or when the service is performed. Revenue from the sales of products, which is included as a component of service revenues, is recognized when products are shipped to the customer and title has passed to the customer. Revenues from the sales of products have historically not been significant.

        Cost of sales (excluding depreciation and amortization) consists primarily of wages and benefits for field personnel, facility occupancy costs (including rent and utilities), transportation expenses (including vehicle leases and fuel), other product cost of sales and other equipment costs and supplies. Of these, wages and benefits and facility occupancy costs are the most significant. Trends in total wages and benefits in dollars and as a percentage of total consolidated revenue are influenced by changes in headcount and compensation levels, achievement of incentive compensation targets, workforce productivity and variability in costs associated with medical insurance and workers compensation. Trends in facility occupancy costs are impacted by the total number of facilities we occupy, the mix of properties we own versus properties we occupy under operating leases, fluctuations in per square foot occupancy costs, and the levels of utilization of these properties.

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        The expansion of our European and secure shredding businesses has impacted the major cost of sales components. Our European operations are more labor intensive than our North American businesses and, therefore, add incremental labor costs at a higher percentage of segment revenue than our North American business. Our secure shredding operations incur lower facility costs and higher transportation costs as a percentage of revenues compared to our core physical businesses.

        Selling, general and administrative expenses consist primarily of wages and benefits for management, administrative, information technology, sales, account management and marketing personnel, as well as expenses related to communications and data processing, travel, professional fees, bad debts, training, office equipment and supplies. Trends in total wage and benefit dollars as a percentage of total consolidated revenue are influenced by changes in headcount and compensation levels, achievement of incentive compensation targets, workforce productivity and variability in costs associated with medical insurance. The overhead structure of our expanding European and Asian operations, as compared to our North American operations, is more labor intensive and has not achieved the same level of overhead leverage, which may result in an increase in selling, general and administrative expenses, as a percentage of consolidated revenue, as our European and Asian operations become a more meaningful percentage of our consolidated results.

        Our depreciation and amortization charges result primarily from the capital-intensive nature of our business. The principal components of depreciation relate to storage systems, which include racking, building and leasehold improvements, computer systems hardware and software, and buildings. Amortization relates primarily to customer relationship acquisition costs and is impacted by the nature and timing of acquisitions.

        In September 2011, as a result of certain changes we made in the manner in which our European operations are managed, we reorganized our reporting structure and reassigned goodwill among the revised reporting units. As a result of the management and reporting changes, we concluded that we have three reporting units for our European operations: (1) the United Kingdom, Ireland and Norway ("UKI"); (2) Belgium, France, Germany, Luxembourg, Netherlands and Spain ("Western Europe"); and (3) the remaining countries in Europe ("Central Europe"). Due to these changes, we will perform all future goodwill impairment analysis on the new reporting unit basis. As a result of the restructuring of our reporting units, we concluded that we had an interim triggering event, and, therefore, we performed an interim goodwill impairment test for UKI, Western Europe and Central Europe in the third quarter of 2011 as of August 31, 2011. As required by accounting principles generally accepted in the United States of America ("GAAP"), prior to our goodwill impairment analysis, we performed an impairment assessment on the long-lived assets within our UKI, Western Europe and Central Europe reporting units and noted no impairment, except for the Italian Business, which was included in our Western Europe reporting unit, and which is now included in discontinued operations. See Note 14 to Notes to Consolidated Financial Statements. Based on our analyses, we concluded that the goodwill of our UKI and Central Europe reporting units was not impaired. Our UKI and Central Europe reporting units had fair values that exceed their carrying values by 15.1% and 4.9%, respectively, as of August 31, 2011. Central Europe is still in the investment stage, and, accordingly, its fair value does not exceed its carrying value by a significant margin at this point in time. A deterioration of the UKI or Central Europe businesses or their failure to achieve the forecasted results could lead to impairments in future periods. Our Western Europe reporting unit's fair value was less than its carrying value, and, as a result, we recorded a goodwill impairment charge of $46.5 million included as a component of intangible impairments from continuing operations in our consolidated statements of operations for the year ended December 31, 2011. A tax benefit of approximately $5.4 million was recorded associated with the Western Europe goodwill impairment charge for the year ended December 31, 2011 and is included in the provision from income taxes from continuing operations.

        During the quarter ended September 30, 2010, prior to our annual goodwill impairment review, we concluded that events occurred and circumstances changed in our former worldwide digital business

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reporting unit that required us to conduct an impairment review. The primary factors contributing to our conclusion that we had a triggering event and a requirement to reassess our former worldwide digital business reporting unit goodwill for impairment included: (1) a reduction in forecasted revenue and operating results due to continued pressure on key parts of the business as a result of the weak economy; (2) reduced revenue and profit outlook for our eDiscovery service due to smaller average matter size and lower pricing; (3) a decision to discontinue certain software development projects; and (4) the sale of the Domain Name Product Line. As a result of the review, we recorded a provisional goodwill impairment charge associated with our former worldwide digital business reporting unit in the amount of $255.0 million during the quarter ended September 30, 2010. We finalized the estimate in the fourth quarter of 2010, and we recorded an additional impairment of $28.8 million, for a total goodwill impairment charge of $283.8 million. Based on a relative fair value basis, we allocated $85.9 million of this charge to the retained technology escrow services business which continues to be included in our continuing results of operations. Our technology escrow services business had previously been reported in the former worldwide digital business segment along with the Digital Business and the Domain Name Product Line. The technology escrow services business is now reported in the North American Business segment.

        Our consolidated revenues and expenses are subject to variations caused by the net effect of foreign currency translation on revenues and expenses incurred by our entities outside the U.S. In 2009, we saw decreases in both revenues and expenses as a result of the weakening of the British pound sterling, the Canadian dollar and the Euro against the U.S. dollar, based on an analysis of weighted average exchange rates for the comparable periods. In 2010, we saw increases in both revenues and expenses as a result of the strengthening of the British pound sterling and the Canadian dollar, slightly offset by a weakening of the Euro, against the U.S. dollar, based on an analysis of weighted average exchange rates for the comparable periods. In 2011, we saw increases in both revenues and expenses as a result of the strengthening of the British pound sterling, Canadian dollar and Euro, against the U.S. dollar, based on an analysis of weighted average exchange rates for the comparable periods. It is difficult to predict how much foreign currency exchange rates will fluctuate in the future and how those fluctuations will impact our consolidated statement of operations. Due to the expansion of our international operations, these fluctuations have become material on individual balances. However, because both the revenues and expenses are denominated in the local currency of the country in which they are derived or incurred, the impact of currency fluctuations on our operating income and operating margin is partially mitigated. In order to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency fluctuations, we compare the percentage change in the results from one period to another period in this report using constant currency disclosure. The constant currency growth rates are calculated by translating the 2009 results at the 2010 average exchange rates and the 2010 results at the 2011 average exchange rates.

        Prior to January 1, 2010, the financial position and results of operations of the operating subsidiaries of IME, our European business, were consolidated based on IME's fiscal year ended October 31. Effective January 1, 2010, we changed the fiscal year-end (and the reporting period for consolidation purposes) of IME to coincide with IMI's fiscal year-end of December 31. We believe that the change in accounting principle related to the elimination of the two-month reporting lag for IME is preferable because it results in more contemporaneous reporting of events and results related to IME. In accordance with applicable accounting literature, a change in a subsidiary's year-end is treated as a change in accounting principle and requires retrospective application. The impact of the change was not material to the results of operations for the previously reported annual and interim periods prior to January 1, 2010, and, thus, those results have not been revised. There is, however, a charge of $4.7 million recorded to other (income) expense, net in the year ended December 31, 2010 to recognize the immaterial differences arising from the change.

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        The following table is a comparison of underlying average exchange rates of the foreign currencies that had the most significant impact on our U.S. dollar-reported revenues and expenses:

	Average Exchange Rates for the Year Ended December 31,
					Percentage Strengthening/ (Weakening) of Foreign Currency
	2010		2011
British pound sterling	$	1.546	$	1.604		3.8	%
Canadian dollar	$	0.971	$	1.012		4.2	%
Euro	$	1.328	$	1.392		4.8	%

	Average Exchange Rates for the Year Ended December 31,
					Percentage Strengthening/ (Weakening) of Foreign Currency
	2009(1)		2010
British pound sterling	$	1.544	$	1.546		0.1	%
Canadian dollar	$	0.880	$	0.971		10.3	%
Euro	$	1.366	$	1.328		(2.8	)%

(1)

Corresponding to the appropriate periods based on the operating subsidiaries of IME's fiscal year ended October 31.

Non-GAAP Measures

Adjusted Operating Income Before Depreciation, Amortization and Intangible Impairments ("Adjusted OIBDA")

        Adjusted OIBDA is defined as operating income before depreciation, amortization, intangible impairments and (gain) loss on disposal/write-down of property, plant and equipment, net. Adjusted OIBDA Margin is calculated by dividing Adjusted OIBDA by total revenues. We use multiples of current or projected Adjusted OIBDA in conjunction with our discounted cash flow models to determine our overall enterprise valuation and to evaluate acquisition targets. We believe Adjusted OIBDA and Adjusted OIBDA Margin provide current and potential investors with relevant and useful information regarding our ability to generate cash flow to support business investment. These measures are an integral part of the internal reporting system we use to assess and evaluate the operating performance of our business. Adjusted OIBDA does not include certain items that we believe are not indicative of our core operating results, specifically: (1) (gain) and loss on disposal/write-down of property, plant and equipment, net; (2) intangible impairments; (3) other expense (income), net; (4) cumulative effect of change in accounting principle; (5) income (loss) from discontinued operations; (6) gain (loss) on sale of discontinued operations; and (7) net income (loss) attributable to noncontrolling interests.

        Adjusted OIBDA also does not include interest expense, net and the provision (benefit) for income taxes. These expenses are associated with our capitalization and tax structures, which we do not consider when evaluating the operating profitability of our core operations. Finally, Adjusted OIBDA does not include depreciation and amortization expenses in order to eliminate the impact of capital investments, which we evaluate by comparing capital expenditures to incremental revenue generated and as a percentage of total revenues. Adjusted OIBDA and Adjusted OIBDA Margin should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP, such as operating or net income (loss) or cash flows from operating activities from continuing operations (as determined in accordance with GAAP).

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Reconciliation of Adjusted OIBDA to Operating Income; Income from Continuing Operations and Net Income (Loss) (in thousands):

	Year Ended December 31,
	2007			2008			2009			2010			2011
Adjusted OIBDA	$	676,165		$	754,279		$	822,579		$	926,676		$	934,912
Less: Depreciation and Amortization		220,217			254,497			277,186			304,205			319,499
Intangible Impairments		—			—			—			85,909			46,500
Loss (Gain) on Disposal/Write-Down of Property, Plant and Equipment, Net		(5,463	)		7,522			168			(10,987	)		(2,286	)
Operating Income		461,411			492,260			545,225			547,549			571,199
Less: Interest Expense, Net		214,147			219,989			212,545			204,559			205,256
Other (Income) Expense, Net		4,103			31,505			(12,599	)		8,768			13,043
Provision for Income Taxes		72,617			146,122			113,762			167,483			106,488
Income from Continuing Operations		170,544			94,644			231,517			166,739			246,412
Total (Loss) Income from Discontinued Operations, Net of Tax		(17,858	)		(14,889	)		(12,138	)		(219,417	)		153,180
Net Income Attributable to Noncontrolling Interests		920			(94	)		1,429			4,908			4,054
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	151,766		$	79,849		$	217,950		$	(57,586	)	$	395,538

Free Cash Flows before Acquisitions and Discretionary Investments ("FCF")

        FCF is defined as Cash Flows from Operating Activities—Continuing Operations less capital expenditures (excluding real estate), net of proceeds from the sales of property and equipment and other, net, and additions to customer relationship and acquisition costs. Our management uses this measure when evaluating the operating performance of our consolidated business. We believe this measure provides relevant and useful information to our current and potential investors. FCF is a useful measure in determining our ability to generate excess cash that may be used for reinvestment in the business, discretionary deployment in investments such as real estate or acquisition opportunities, returning of capital to our stockholders and voluntary prepayments of indebtedness.

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Reconciliation of FCF to Cash Flows from Operating Activities—Continuing Operations (in thousands):

	Year Ended December 31,
	2007			2008			2009			2010			2011
Free Cash Flows before Acquisitions and Discretionary Investments	$	168,196		$	196,522		$	330,142		$	370,128		$	457,838
Add: Capital Expenditures (excluding real estate), net(1)		298,158			303,236			245,687			219,899			183,973
Additions to Customer Relationship and Acquisitions Costs		16,384			14,141			10,741			13,202			21,703
Cash Flows From Operating Activities—Continuing Operations	$	482,738		$	513,899		$	586,570		$	603,229		$	663,514
Cash Flows From Investing Activities—Continuing Operations	$	(700,689	)	$	(421,480	)	$	(298,699	)	$	(298,458	)	$	(302,213	)
Cash Flows From Financing Activities—Continuing Operations	$	461,570		$	87,028		$	(128,286	)	$	(379,711	)	$	(762,670	)

(1)

The 2010 results included approximately $11,000 incurred by IME in November and December 2009 prior to the change in its fiscal year-end.

Adjusted Earnings per Share from Continuing Operations ("Adjusted EPS")

        Adjusted EPS from continuing operations is defined as reported earnings per share from continuing operations excluding: (a) (gain) loss on the disposal/write-down of property, plant and equipment, net; (b) intangible impairments; (c) other expense (income), net; and (d) the tax impact of reconciling items and discrete tax items. We do not believe these excluded items to be indicative of our ongoing operating results, and they are not considered when we are forecasting our future results. We believe Adjusted EPS from continuing operations is of value to investors when comparing our results from past, present and future periods.

Reconciliation of Adjusted EPS—Fully Diluted from Continuing Operations to Reported EPS Fully Diluted from Continuing Operations:

	Year Ended December 31,
	2007			2008		2009			2010			2011
Adjusted EPS—Fully Diluted from Continuing Operations	$	0.75		$	0.86	$	1.01		$	1.28		$	1.31
Less: (Gain) Loss on disposal/write-down of property, plant and equipment, net		(0.03	)		0.04		—			(0.05	)		(0.01	)
Intangible Impairments		—			—		—			0.43			0.24
Other Expense (Income), net		0.02			0.15		(0.06	)		0.04			0.07
Tax impact of reconciling items and discrete tax items		(0.08	)		0.20		(0.06	)		0.03			(0.25	)
Reported EPS—Fully Diluted from Continuing Operations	$	0.84		$	0.47	$	1.13		$	0.83		$	1.26

Critical Accounting Policies

        Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires us to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of

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contingent assets and liabilities at the date of the financial statements and for the period then ended. On an ongoing basis, we evaluate the estimates used. We base our estimates on historical experience, actuarial estimates, current conditions and various other assumptions that we believe to be reasonable under the circumstances. These estimates form the basis for making judgments about the carrying values of assets and liabilities and are not readily apparent from other sources. Actual results may differ from these estimates. Our critical accounting policies include the following, which are listed in no particular order:

Revenue Recognition

        Our revenues consist of storage revenues as well as service revenues and are reflected net of sales and value added taxes. Storage revenues, which are considered a key performance indicator for the information management services industry, consist primarily of recurring periodic charges related to the storage of materials or data (generally on a per unit basis). Service revenues are comprised of charges for related core service activities and a wide array of complementary products and services. Included in core service revenues are: (1) the handling of records, including the addition of new records, temporary removal of records from storage, refilling of removed records and the destruction of records; (2) courier operations, consisting primarily of the pickup and delivery of records upon customer request; (3) secure shredding of sensitive documents; and (4) other recurring services, including hybrid services and recurring project revenues. Our complementary services revenues include special project work, customer termination and permanent withdrawal fees, data restoration projects, fulfillment services, consulting services, technology services and product sales (including specially designed storage containers and related supplies). A by-product of our secure shredding and destruction services is the sale of recycled paper (included in complementary services revenues), the price of which can fluctuate from period to period, adding to the volatility and reducing the predictability of that revenue stream.

        We recognize revenue when the following criteria are met: persuasive evidence of an arrangement exists, services have been rendered, the sales price is fixed or determinable and collectability of the resulting receivable is reasonably assured. Storage and service revenues are recognized in the month the respective storage or service is provided, and customers are generally billed on a monthly basis on contractually agreed-upon terms. Amounts related to future storage or prepaid service contracts for customers where storage fees or services are billed in advance are accounted for as deferred revenue and recognized ratably over the applicable storage or service period or when the service is performed. Revenue from the sales of products, which is included as a component of service revenues, is recognized when products are shipped to the customer and title has passed to the customer. Revenues from the sales of products have historically not been significant.

Accounting for Acquisitions

        Part of our growth strategy has included the acquisition of numerous businesses. The purchase price of each acquisition has been determined after due diligence of the acquired business, market research, strategic planning and the forecasting of expected future results and synergies. Estimated future results and expected synergies are subject to revisions as we integrate each acquisition and attempt to leverage resources.

        Each acquisition has been accounted for using the acquisition method of accounting as defined under the applicable accounting standards at the date of each acquisition. Accounting for these acquisitions has resulted in the capitalization of the cost in excess of fair value of the net assets acquired in each of these acquisitions as goodwill. We estimated the fair values of the assets acquired in each acquisition as of the date of acquisition and these estimates are subject to adjustment based on the final assessments of the fair value of property, plant and equipment, intangible assets, operating leases and deferred income taxes. We complete these assessments within one year of the date of acquisition. See Note 6 to Notes to Consolidated Financial Statements.

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Allowance for Doubtful Accounts and Credit Memos

        We maintain an allowance for doubtful accounts and credit memos for estimated losses resulting from the potential inability of our customers to make required payments and potential disputes regarding billing and service issues. When calculating the allowance, we consider our past loss experience, current and prior trends in our aged receivables and credit memo activity, current economic conditions and specific circumstances of individual receivable balances. If the financial condition of our customers were to significantly change, resulting in a significant improvement or impairment of their ability to make payments, an adjustment of the allowance may be required. We consider accounts receivable to be delinquent after such time as reasonable means of collection have been exhausted. We charge-off uncollectible balances as circumstances warrant, generally no later than one year past due. As of December 31, 2010 and 2011, our allowance for doubtful accounts and credit memos balance totaled $20.7 million and $23.3 million, respectively.

Impairment of Tangible and Intangible Assets

        Assets subject to amortization: We review long-lived assets and all amortizable intangible assets for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable. Recoverability of these assets is determined by comparing the forecasted undiscounted net cash flows of the operation to which the assets relate to their carrying amount. The operations are generally distinguished by the business segment and geographic region in which they operate. If the operation is determined to be unable to recover the carrying amount of its assets, then intangible assets are written down first, followed by the other long-lived assets of the operation, to fair value. Fair value is determined based on discounted cash flows or appraised values, depending upon the nature of the assets.

        Goodwill—Assets not subject to amortization: Goodwill and intangible assets with indefinite lives are not amortized but are reviewed annually for impairment, or more frequently if impairment indicators arise. We have selected October 1 as our annual goodwill impairment review date. We performed our annual goodwill impairment review as of October 1, 2009, 2010 and 2011 and noted no impairment of goodwill. However, as a result of interim triggering events as discussed below, we recorded provisional goodwill impairment charges in each of the third quarters of 2010 and 2011 in conjunction with the Digital Sale and associated with our European operations, respectively. These provisional goodwill impairment charges were finalized in the fourth quarters of the 2010 and 2011 fiscal years, respectively. As of December 31, 2011, no factors were identified that would alter our October 1, 2011 goodwill assessment. In making this assessment, we relied on a number of factors including operating results, business plans, anticipated future cash flows, transactions and market place data. There are inherent uncertainties related to these factors and our judgment in applying them to the analysis of goodwill impairment. When changes occur in the composition of one or more reporting units, the goodwill is reassigned to the reporting units affected based on their relative fair values.

        During the quarter ended September 30, 2010, prior to our annual goodwill impairment review, we concluded that events occurred and circumstances changed in our former worldwide digital business reporting unit that required us to conduct an impairment review. The primary factors contributing to our conclusion that we had a triggering event and a requirement to reassess our former worldwide digital business reporting unit goodwill for impairment included: (1) a reduction in forecasted revenue and operating results due to continued pressure on key parts of the business as a result of the weak economy; (2) reduced revenue and profit outlook for our eDiscovery service due to smaller average matter size and lower pricing; (3) a decision to discontinue certain software development projects; and (4) the sale of the Domain Name Product Line. As a result of the review, we recorded a provisional goodwill impairment charge associated with our former worldwide digital business reporting unit in the amount of $255.0 million during the quarter ended September 30, 2010. We finalized the estimate in the fourth quarter of 2010, and we recorded an additional impairment of $28.8 million, for a total

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goodwill impairment charge of $283.8 million. For the year ended December 31, 2010, based on a relative fair value basis, we allocated $85.9 million of this charge to the retained technology escrow services business which continues to be included in our continuing results of operations. The technology escrow services business had previously been reported in the former worldwide digital business segment along with the Digital Business and the Domain Name Product Line and is now reported in the North American Business segment.

        In September 2011, as a result of certain changes we made in the manner in which our European operations are managed, we reorganized our reporting structure and reassigned goodwill among the revised reporting units. Previously, we tested goodwill impairment at the European level on a combined basis. As a result of the management and reporting changes, we concluded that we have three reporting units for our European operations: (1) UKI; (2) Western Europe; and (3) Central Europe. Due to these changes, we will perform all future goodwill impairment analyses on the new reporting unit basis. As a result of the restructuring of our reporting units, we concluded that we had an interim triggering event, and, therefore, we performed an interim goodwill impairment test for UKI, Western Europe and Central Europe in the third quarter of 2011 as of August 31, 2011. As required by GAAP, prior to our goodwill impairment analysis, we performed an impairment assessment on the long-lived assets within our UKI, Western Europe and Central Europe reporting units and noted no impairment, except for the Italian Business, which was included in our Western Europe reporting unit, and which is now included in discontinued operations as discussed at Note 14 to Notes to Consolidated Financial Statements. Based on our analyses, we concluded that the goodwill of our UKI and Central Europe reporting units was not impaired. Our UKI and Central Europe reporting units had fair values that exceed their carrying values by 15.1% and 4.9%, respectively, as of August 31, 2011. Central Europe is still in the investment stage, and, accordingly, its fair value does not exceed its carrying value by a significant margin at this point in time. A deterioration of the UKI or Central Europe businesses or their failure to achieve the forecasted results could lead to impairments in future periods. Our Western Europe reporting unit's fair value was less than its carrying value, and, as a result, we recorded a goodwill impairment charge of $46.5 million included as a component of intangible impairments from continuing operations in our consolidated statements of operations for the year ended December 31, 2011. A tax benefit of approximately $5.4 million was recorded associated with the Western Europe goodwill impairment charge for the year ended December 31, 2011 and is included in the provision for income taxes from continuing operations.

        Our reporting units at which level we performed our goodwill impairment analysis as of October 1, 2010 were as follows: North America; Europe; Latin America; Australia; Joint Ventures (which includes India, the various joint ventures in Southeast Asia and Russia (referred to as "Joint Ventures")); and Business Process Management ("BPM"). Given their similar economic characteristics, products, customers and processes, (1) the United Kingdom, Ireland and Norway and (2) the countries of Continental Europe (excluding Joint Ventures), each a reporting unit, have been aggregated as Europe and tested as one for goodwill impairment. As of December 31, 2010, the carrying value of goodwill, net amounted to $1,750.4 million, $438.3 million, $29.8 million and $61.0 million for North America, Europe, Latin America and Australia, respectively. Our Joint Ventures and BPM reporting units had no goodwill as of December 31, 2010. Our reporting units at which level we performed our goodwill impairment analysis as of October 1, 2011 were as follows: North America; UKI; Western Europe; Central Europe; Latin America; Australia; and Joint Ventures. As of December 31, 2011, the carrying value of goodwill, net amounted to $1,748.9 million, $306.2 million, $46.4 million, $63.8 million, $27.3 million, and $61.7 million for North America, UKI, Western Europe, Central Europe, Latin America and Australia, respectively. Our Joint Ventures reporting unit has no goodwill as of December 31, 2011. Our North America, Latin America and Australia reporting units had estimated fair values as of October 1, 2011 that exceeded their carrying value by greater than 40%.

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        Reporting unit valuations have been calculated using an income approach based on the present value of future cash flows of each reporting unit or a combined approach based on the present value of future cash flows and market and transaction multiples of revenues and earnings. The income approach incorporates many assumptions including future growth rates, discount factors, expected capital expenditures and income tax cash flows. Changes in economic and operating conditions impacting these assumptions could result in goodwill impairments in future periods. In conjunction with our annual goodwill impairment reviews, we reconcile the sum of the valuations of all of our reporting units to our market capitalization as of such dates.

Accounting for Internal Use Software

        We develop various software applications for internal use. Computer software costs associated with internal use software are expensed as incurred until certain capitalization criteria are met. Payroll and related costs for employees who are directly associated with, and who devote time to, the development of internal use computer software projects (to the extent time is spent directly on the project) are capitalized and depreciated over the estimated useful life of the software. Capitalization begins when the design stage of the application has been completed and it is probable that the application will be completed and used to perform the function intended. Depreciation begins when the software is placed in service. Computer software costs that are capitalized are periodically evaluated for impairment.

        It may be necessary for us to write-off amounts associated with the development of internal use software if the project cannot be completed as intended. We may be required to write-off unamortized costs or shorten the estimated useful life if an internal use software program is replaced with an alternative tool prior to the end of the software's estimated useful life. Capitalized labor net of accumulated depreciation was $33.7 million as of both December 31, 2011 and December 31, 2010. See Note 2.f. to Notes to Consolidated Financial Statements.

        During the years ended December 31, 2009 and 2011, we wrote-off $0.6 million (primarily in Corporate) and $3.5 million (approximately $3.1 million associated with our International Business segment and approximately $0.4 million associated with our North American Business segment), respectively, of previously deferred software costs associated with internal use software development projects that were discontinued after implementation, which resulted in a loss on disposal/write-down of property, plant and equipment, net in each of these years.

Income Taxes

        We recorded a valuation allowance, amounting to $72.2 million as of December 31, 2011, to reduce our deferred tax assets, primarily associated with certain state and foreign net operating loss carryforwards and foreign tax credit carryforwards, to the amount that is more likely than not to be realized. We have federal net operating loss carryforwards which begin to expire in 2020 through 2025 of $28.2 million ($9.9 million, tax effected) at December 31, 2011 to reduce future federal taxable income. We have an asset for state net operating losses of $7.9 million (net of federal tax benefit), which begins to expire in 2012 through 2025, subject to a valuation allowance of approximately 99%. We have assets for foreign net operating losses of $40.3 million, with various expiration dates, subject to a valuation allowance of approximately 69%. We also have foreign tax credits of $56.6 million, which begin to expire in 2014 through 2019, subject to a valuation allowance of approximately 65%. U.S. legislative changes in 2010 reduced the expected utilization of foreign tax credits which resulted in the requirement for a valuation allowance. If actual results differ unfavorably from certain of our estimates used, we may not be able to realize all or part of our net deferred income tax assets and foreign tax credit carryforwards, and additional valuation allowances may be required. Although we believe our estimates are reasonable, no assurance can be given that our estimates reflected in the tax provisions and accruals will equal our actual results. These differences could have a material impact on our income tax provision and operating results in the period in which such determination is made.

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        The evaluation of an uncertain tax position is a two-step process. The first step is a recognition process whereby the company determines whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The second step is a measurement process whereby a tax position that meets the more likely than not recognition threshold is calculated to determine the amount of benefit to recognize in the financial statements. The tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement.

        We are subject to examination by various tax authorities in jurisdictions in which we have significant business operations. We regularly assess the likelihood of additional assessments by tax authorities and provide for these matters as appropriate. As of December 31, 2010 and 2011, we had approximately $59.9 million and $31.4 million, respectively, of reserves related to uncertain tax positions. The reversal of these reserves will be recorded as a reduction of our income tax provision if sustained. Although we believe our tax estimates are appropriate, the final determination of tax audits and any related litigation could result in favorable or unfavorable changes in our estimates.

        We have elected to recognize interest and penalties associated with uncertain tax positions as a component of the provision (benefit) for income taxes. We recorded $4.7 million, $(1.6) million and $(8.5) million for gross interest and penalties for the years ended December 31, 2009, 2010 and 2011, respectively.

        We had $11.6 million and $2.8 million accrued for the payment of interest and penalties as of December 31, 2010 and 2011, respectively.

        We have not provided deferred taxes on book basis differences related to certain foreign subsidiaries because such basis differences are not expected to reverse in the foreseeable future and we intend to reinvest indefinitely outside the U.S. These basis differences arose primarily through the undistributed book earnings of our foreign subsidiaries. The basis differences could be reversed through a sale of the subsidiaries, the receipt of dividends from subsidiaries and certain other events or actions on our part, each of which would result in an increase in our provision for income taxes. It is not practicable to calculate the amount of such basis differences.

Stock-Based Compensation

        We record stock-based compensation expense, utilizing the straight-line method, for the cost of stock options, restricted stock, restricted stock units, performance units and shares of stock issued under the employee stock purchase plan. Stock-based compensation expense for the years ended December 31, 2009, 2010 and 2011 was $18.7 million, including $3.5 million in discontinued operations, ($14.7 million after tax or $0.07 per basic and diluted share), $20.4 million, including $3.1 million in discontinued operations, ($15.7 million after tax or $0.08 per basic and diluted share) and $17.5 million, including $0.3 million in discontinued operations, ($8.8 million after tax or $0.05 per basic and diluted share), respectively.

        The fair values of option grants are estimated on the date of grant using the Black-Scholes option pricing model. Expected volatility and the expected term are the input factors to that model which require the most significant management judgment. Expected volatility is calculated utilizing daily historical volatility over a period that equates to the expected life of the option. The expected life (estimated period of time outstanding) of the stock options granted is estimated using the historical exercise behavior of employees.

Self-Insured Liabilities

        We are self-insured up to certain limits for costs associated with workers' compensation claims, vehicle accidents, property and general business liabilities, and benefits paid under employee healthcare

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and short-term disability programs. At December 31, 2010 and 2011, there were approximately $43.9 million and $39.4 million, respectively, of self-insurance accruals reflected in our consolidated balance sheets. The measurement of these costs requires the consideration of historical cost experience and judgments about the present and expected levels of cost per claim. We account for these costs primarily through actuarial methods, which develop estimates of the undiscounted liability for claims incurred, including those claims incurred but not reported. These methods provide estimates of future ultimate claim costs based on claims incurred as of the balance sheet date.

        We believe the use of actuarial methods to account for these liabilities provides a consistent and effective way to measure these highly judgmental accruals. However, the use of any estimation technique in this area is inherently sensitive given the magnitude of claims involved and the length of time until the ultimate cost is known. We believe our recorded obligations for these expenses are appropriate. Nevertheless, changes in healthcare costs, severity, and other factors can materially affect the estimates for these liabilities.

Recent Accounting Pronouncements

        In September 2011, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") No. 2011-08, Intangibles—Goodwill and Other (Topic 350): Testing Goodwill for Impairment. ASU 2011-08 allows but does not require entities to first assess qualitatively whether it is necessary to perform the two-step goodwill impairment test. If an entity believes, as a result of its qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative two-step impairment test is required; otherwise, no further testing is required. ASU 2011-08 is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, with early adoption permitted. The adoption of this ASU 2011-08 will not have a material impact on our consolidated financial position, results of operations or cash flows.

Results of Operations

Comparison of Year Ended December 31, 2011 to Year Ended December 31, 2010 and Comparison of Year Ended December 31, 2010 to Year Ended December 31, 2009 (in thousands):

	Year Ended December 31,
							Dollar Change			Percentage Change
	2010			2011
Revenues	$	2,892,349		$	3,014,703		$	122,354			4.2	%
Operating Expenses(1)(2)		2,344,800			2,443,504			98,704			4.2	%
Operating Income		547,549			571,199			23,650			4.3	%
Other Expenses, Net		380,810			324,787			(56,023	)		(14.7	)%
Income from Continuing Operations(1)(2)		166,739			246,412			79,673			47.8	%
Loss from Discontinued Operations(1)(2)		(219,417	)		(47,439	)		171,978			78.4	%
Gain on Sale of Discontinued Operations		—			200,619			200,619			100.0	%
Net (Loss) Income		(52,678	)		399,592			452,270			858.6	%
Net Income Attributable to Noncontrolling Interests		4,908			4,054			(854	)		17.4	%
Net (Loss) Income Attributable to Iron Mountain Incorporated	$	(57,586	)	$	395,538		$	453,124			786.9	%
Adjusted OIBDA(3)	$	926,676		$	934,912		$	8,236			0.9	%
Adjusted OIBDA Margin(3)		32.0	%		31.0	%

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	Year Ended December 31,
							Dollar Change			Percentage Change
	2009			2010
Revenues	$	2,774,384		$	2,892,349		$	117,965			4.3	%
Operating Expenses(1)		2,229,159			2,344,800			115,641			5.2	%
Operating Income		545,225			547,549			2,324			0.4	%
Other Expenses, Net		313,708			380,810			67,102			21.4	%
Income from Continuing Operations(1)		231,517			166,739			(64,778	)		(28.0	)%
Loss from Discontinued Operations(1)		(12,138	)		(219,417	)		(207,279	)		(1,707.7	)%
Net Income (Loss)		219,379			(52,678	)		(272,057	)		(124.0	)%
Net Income Attributable to Noncontrolling Interests		1,429			4,908			3,479			(243.5	)%
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	217,950		$	(57,586	)	$	(275,536	)		(126.4	)%
Adjusted OIBDA(3)	$	822,579		$	926,676		$	104,097			12.7	%
Adjusted OIBDA Margin(3)		29.6	%		32.0	%

(1)

A $283.8 million non-cash goodwill impairment charge related to our former worldwide digital business reporting unit in the year ended December 31, 2010 was recorded. We allocated $85.9 million of the charge to our retained technology escrow services business, included in our continuing results of operations (included in operating expenses in 2010). We allocated the remaining $197.9 million to the Digital Business (included in loss from discontinued operations in 2010). See Notes 2.g. and 14 to Notes to Consolidated Financial Statements.

(2)

A $49.0 million non-cash goodwill impairment charge related to our Western Europe reporting unit in the year ended December 31, 2011 was recorded. $46.5 million of the charge is included in our continuing results of operations (included in operating expenses in 2011). $2.5 million of the charge was allocated to the Italian Business and is included in loss from discontinued operations in 2011. See Notes 2.g. and 14 to Notes to Consolidated Financial Statements.

(3)

See "Non-GAAP Measures—Adjusted Operating Income Before Depreciation, Amortization and Intangible Impairments, or 'Adjusted OIBDA"' for the definition, reconciliation and a discussion of why we believe these measures provide relevant and useful information to our current and potential investors.

REVENUE

							Percentage Change
	Year Ended December 31,
					Dollar Change					Constant Currency(1)			Internal Growth(2)
	2010		2011				Actual
Storage	$	1,598,718	$	1,682,990	$	84,272		5.3	%		3.9	%		3.1	%
Core Service		947,737		968,424		20,687		2.2	%		0.3	%		(0.8	)%
Total Core Revenue		2,546,455		2,651,414		104,959		4.1	%		2.6	%		1.6	%
Complementary Services		345,894		363,289		17,395		5.0	%		3.5	%		3.7	%
Total Revenue	$	2,892,349	$	3,014,703	$	122,354		4.2	%		2.7	%		1.9	%

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							Percentage Change
	Year Ended December 31,
					Dollar Change					Constant Currency(1)			Internal Growth(2)
	2009		2010				Actual
Storage	$	1,533,792	$	1,598,718	$	64,926		4.2	%		3.2	%		3.1	%
Core Service		944,676		947,737		3,061		0.3	%		(0.7	)%		(0.9	)%
Total Core Revenue		2,478,468		2,546,455		67,987		2.7	%		1.7	%		1.6	%
Complementary Services		295,916		345,894		49,978		16.9	%		13.0	%		15.6	%
Total Revenue	$	2,774,384	$	2,892,349	$	117,965		4.3	%		2.9	%		3.1	%

(1)

Constant currency growth rates are calculated by translating the 2010 results at the 2011 average exchange rates and the 2009 results at the 2010 average exchange rates.

(2)

Our internal revenue growth rate represents the weighted average year-over-year growth rate of our revenues after removing the effects of acquisitions, divestitures and foreign currency exchange rate fluctuations. We calculate internal revenue growth in local currency for our international operations.

        Our consolidated storage revenues increased $84.3 million, or 5.3%, to $1,683.0 million for the year ended December 31, 2011 and $64.9 million, or 4.2%, to $1,598.7 million for the year ended December 31, 2010, in comparison to the years ended December 31, 2010 and 2009, respectively. The growth rate for the year ended December 31, 2011 is comprised of internal revenue growth of 3.1%. Foreign currency exchange rate fluctuations added approximately 1.4% to our storage revenue growth rate for the year ended December 31, 2011. Net acquisitions/divestitures contributed 0.8% of the increase in reported storage revenues in 2011. Our consolidated storage revenue growth in 2011 was driven by continued solid storage growth in the International Business segment and consistent volume and price increases in our North American Business segment. The growth rate for the year ended December 31, 2010 as compared to 2009 is comprised of internal revenue growth of 3.1%. Foreign currency exchange rate fluctuations added 1.1% to our storage revenue growth rate for the year ended December 31, 2010. Our consolidated storage revenue growth was moderated in 2010 by economic factors, resulting in reduced average net pricing gains in North America due to the low inflationary environment, episodic destructions in the physical data protection business and lower new sales and higher destruction rates in our North American Business segment, which were offset by new sales in international markets.

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        Consolidated service revenues, consisting of core service and complementary services, increased $38.1 million, or 2.9%, to $1,331.7 million for the year ended December 31, 2011 from $1,293.6 million for the year ended December 31, 2010. Service revenue internal growth was 0.4% driven by complementary service revenue internal growth of 3.7% in 2011, partially offset by negative core service revenue internal growth of 0.8% in 2011. Complementary service revenues increased in 2011 compared to 2010 primarily due to $25.8 million of additional revenue generated from the sale of recycled paper due, in part, to increases in paper prices. Paper prices, however, declined significantly during the fourth quarter of 2011 and into 2012. Should paper prices remain at their current levels throughout 2012, we would expect revenues from the sale of recycled paper to be lower in 2012 than in 2011. Core service revenue internal growth in the year ended December 31, 2011 continued to be constrained by current economic trends and pressures on activity-based service revenues related to the handling and transportation of items in storage. These decreases were partially offset by strong hybrid revenue growth and higher fuel surcharges. Foreign currency exchange rate fluctuations increased reported service revenues by 1.7% in 2011 over the same period in 2010. Net acquisitions/divestitures contributed 0.8% of the increase in reported service revenues in 2011 compared to the same period in 2010. Consolidated service revenues, consisting of core service and complementary services, increased $53.0 million, or 4.3%, to $1,293.6 million for the year ended December 31, 2010 from $1,240.6 million for the year ended December 31, 2009. Service revenue internal growth was 3.0% as complementary service revenue internal growth of 15.6% in 2010 was offset by negative core service revenue internal growth of 0.9% in 2010. Complementary service revenues increased in 2010 primarily due to $36.8 million more revenue resulting from higher recycled paper pricing and gains in hybrid service revenues in the year ended December 31, 2010 compared to 2009. Core service revenue internal growth in the year ended December 31, 2010 was constrained by economic trends and pressures on activity-based service revenues related to the handling and transportation of items in storage. Favorable foreign currency exchange rate fluctuations for the year ended December 31, 2010 compared to the same period in 2009 increased reported service revenues 1.3%.

        For the reasons stated above, our consolidated revenues increased $122.4 million, or 4.2%, to $3,014.7 million for the year ended December 31, 2011 from $2,892.3 million for the year ended December 31, 2010. During the years ended December 31, 2011, 2010 and 2009, we recorded reductions to reported revenues of $6.0 million, $6.0 million and $4.8 million, respectively, related to a billing error involving a government contract. See Note 2.y. to Notes to Consolidated Financial Statements. We calculate internal revenue growth in local currency for our international operations. Internal revenue growth was 1.9% for 2011. For the year ended December 31, 2011, foreign currency exchange rate fluctuations increased our consolidated revenues by 1.5% primarily due to the strengthening of the British pound sterling, Canadian dollar and Euro against the U.S. dollar, based on an analysis of weighted average rates for the comparable periods. Net acquisitions/divestitures contributed 0.8% of the increase in total reported revenues in 2011 over the same period in 2010. Our consolidated revenues increased $118.0 million, or 4.3%, to $2,892.3 million for the year ended December 31, 2010 from $2,774.4 million for the year ended December 31, 2009. Internal revenue growth was 3.1% for 2010. For the year ended December 31, 2010, foreign currency exchange rate fluctuations increased our reported revenues by 1.2% primarily due to the strengthening of the British pound sterling and the Canadian dollar against the U.S. dollar, offset by the weakening of the Euro against the U.S. dollar, based on an analysis of weighted average rates for the comparable periods.

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Internal Growth—Eight-Quarter Trend

	2010												2011
	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Storage Revenue		4.3	%		3.7	%		2.3	%		2.3	%		3.0	%		2.8	%		3.3	%		3.3	%
Service Revenue		4.5	%		2.4	%		3.9	%		1.1	%		(0.1	)%		1.2	%		1.8	%		(1.4	)%
Total Revenue		4.4	%		3.1	%		3.0	%		1.8	%		1.6	%		2.1	%		2.6	%		1.2	%

        We expect our consolidated internal revenue growth for 2012 to be approximately (1)% to 2%. During the past eight quarters our storage revenue internal growth rate has ranged between 2.3% and 4.3%. Our storage revenue growth rate moderated in late 2009 and into 2010 due to the economic downturn, which resulted in reduced average net pricing gains in North America due to the low inflationary environment, episodic destructions in the physical data protection business and lower new sales and higher destruction rates in our North American Business segment. These impacts were offset by new sales in international markets. Our storage growth rate in 2011 was driven by continued solid storage growth in the International Business segment and sustained growth in our North American Business segment. The internal revenue growth rate for service revenue is inherently more volatile than the storage revenue internal growth rate due to the more discretionary nature of certain complementary services we offer, such as large special projects, and the volatility of prices for recycled paper. These revenues, which are often event driven and impacted to a greater extent by economic downturns as customers defer or cancel the purchase of certain services as a way to reduce their short-term costs, may be difficult to replicate in future periods. As a commodity, recycled paper prices are subject to the volatility of that market. The revenue internal growth rate for service revenues reflects the following: (1) pressures on activity-based service revenues related to the handling and transportation of items in storage and secure shredding; (2) the expected softness in our complementary service revenues, such as project revenues and fulfillment services; and (3) improvement in commodity prices for recycled paper during the first half of fiscal year 2011 and higher fuel surcharges.

OPERATING EXPENSES

Cost of Sales

        Consolidated cost of sales (excluding depreciation and amortization) is comprised of the following expenses (in thousands):

							Percentage Change
													% of Consolidated Revenues
	Year Ended December 31,																		Percentage Change (Favorable)/ Unfavorable
					Dollar Change					Constant Currency
	2010		2011				Actual						2010			2011
Labor	$	580,920	$	595,207	$	14,287		2.5	%		0.7	%		20.1	%		19.7	%		(0.4	)%
Facilities		405,341		422,020		16,679		4.1	%		2.4	%		14.0	%		14.0	%		0.0	%
Transportation		107,406		125,005		17,599		16.4	%		14.4	%		3.7	%		4.1	%		0.4	%
Product Cost of Sales and Other		99,195		102,968		3,773		3.8	%		1.7	%		3.4	%		3.4	%		0.0	%
	$	1,192,862	$	1,245,200	$	52,338		4.4	%		2.6	%		41.2	%		41.3	%		0.1	%

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								Percentage Change
														% of Consolidated Revenues
	Year Ended December 31,																			Percentage Change (Favorable)/ Unfavorable
					Dollar Change						Constant Currency
	2009		2010					Actual						2009			2010
Labor	$	588,383	$	580,920	$	(7,463	)		(1.3	)%		(2.3	)%		21.2	%		20.1	%		(1.1	)%
Facilities		404,351		405,341		990			0.2	%					14.6	%		14.0	%		(0.6	)%
Transportation		109,823		107,406		(2,417	)		(2.2	)%		(2.8	)%		4.0	%		3.7	%		(0.3	)%
Product Cost of Sales and Other		99,314		99,195		(119	)		(0.1	)%		(3.6	)%		3.6	%		3.4	%		(0.2	)%
	$	1,201,871	$	1,192,862	$	(9,009	)		(0.7	)%		(1.9	)%		43.3	%		41.2	%		(2.1	)%

Labor

        Labor expense decreased to 19.7% of consolidated revenues for the year ended December 31, 2011 compared to 20.1% for the year ended December 31, 2010. For the year ended December 31, 2011, labor expense was unfavorably impacted by 1.8 percentage points due to currency rate changes. Excluding (1) the effect of currency rate fluctuations and (2) the impact associated with labor cost accruals related to the Brazilian litigation, in which a charge of $7.4 million was recorded in 2010 and a benefit of $3.5 million was recorded in 2011, labor expense increased by 2.6% in 2011 over 2010 primarily due to increased incentive compensation of $8.0 million as well as increased health insurance expenses of $5.0 million.

        Labor expense decreased to 20.1% of consolidated revenues for the year ended December 31, 2010 compared to 21.2% for the year ended December 31, 2009. For the year ended December 31, 2010 as compared to the year ended December 31, 2009, labor expense was unfavorably impacted by 1.0 percentage points due to currency rate changes. Excluding the effect of currency rate fluctuations, labor expense decreased by 2.3% in 2010 primarily due to productivity gains in our North American Business segment, lower core service levels and lower incentive compensation expense of $12.3 million in the year ended December 31, 2010.

Facilities

        Facilities costs were flat at 14.0% of consolidated revenues for the years ended December 31, 2011 and December 31, 2010. Facilities costs were unfavorably impacted by 1.7 percentage points due to currency rate changes during the year ended December 31, 2011. The largest component of our facilities cost is rent expense, which, on a reported dollar basis, decreased to 12.5% of consolidated storage revenues for the year ended December 31, 2011 compared to 13.0% in the same period in 2010. Other facilities costs increased by approximately $10.1 million, in constant currency terms, for the year ended December 31, 2011 compared to the year ended December 31, 2010, primarily due to increased building maintenance costs of $6.9 million and increased insurance costs of $5.4 million.

        Facilities costs decreased to 14.0% of consolidated revenues for the year ended December 31, 2010 compared to 14.6% for the year ended December 31, 2009. Facilities costs were unfavorably impacted by 0.7 percentage points due to currency rate changes during the year ended December 31, 2010. The largest component of our facilities cost is rent expense, which decreased on a reported dollar basis to 13.0% of consolidated storage revenues in the year ended December 31, 2010 compared to 13.4% in the same period in 2009. Other facilities costs decreased by approximately $2.0 million, in constant currency terms, for the year ended December 31, 2010 compared to the year ended December 31, 2009 primarily due to decreased building maintenance charges of $2.2 million.

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Transportation

        Transportation expenses were unfavorably impacted by 2.0 percentage points due to currency rate changes during the year ended December 31, 2011. Transportation expenses increased by $15.7 million in constant currency terms during the year ended December 31, 2011 compared to the same period in 2010. The increase in transportation costs was primarily a result of increased third party transportation costs of $7.1 million, increased fuel costs of $6.3 million and increased vehicle repair, rental and insurance costs of $2.0 million.

        Transportation expenses were unfavorably impacted by 0.6 percentage points due to currency rate changes during the year ended December 31, 2010. Transportation expenses decreased by $3.1 million in constant currency terms during the year ended December 31, 2010 compared to the same period in 2009. A decrease of $3.3 million in vehicle lease expense for the year ended December 31, 2010 compared to 2009 was due to the capitalization of leased vehicles upon renewal. The lease cost did not change, but the categorization of charges did, resulting in the cost now being allocated to depreciation and interest.

Product Cost of Sales and Other

        Product cost of sales and other, which includes cartons, media and other service, storage and supply costs, is highly correlated to complementary revenue streams. These costs were unfavorably impacted by 2.1 percentage points of currency rate changes during the year ended December 31, 2011. For 2011, product cost of sales and other increased by $3.8 million as compared to 2010 on an actual basis.

        Product cost of sales and other was unfavorably impacted by 3.5 percentage points of currency rate changes during the year ended December 31, 2010. For 2010, these costs decreased by $0.1 million as compared to 2009 on an actual basis.

Selling, General and Administrative Expenses

        Selling, general and administrative expenses are comprised of the following expenses (in thousands):

								Percentage Change
														% of Consolidated Revenues
	Year Ended December 31,																			Percentage Change (Favorable)/ Unfavorable
					Dollar Change						Constant Currency
	2010		2011					Actual						2010			2011
General and Administrative	$	446,175	$	470,430	$	24,255			5.4	%		3.9	%		15.4	%		15.6	%		0.2	%
Sales, Marketing & Account Management		214,977		244,645		29,668			13.8	%					7.4	%		8.1	%		0.7	%
Information Technology		99,858		110,010		10,152			10.2	%		8.7	%		3.5	%		3.6	%		0.1	%
Bad Debt Expense		11,801		9,506		(2,295	)		(19.4	)%		(20.8	)%		0.4	%		0.3	%		(0.1	)%
	$	772,811	$	834,591	$	61,780			8.0	%		6.4	%		26.7	%		27.7	%		1.0	%

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							Percentage Change
													% of Consolidated Revenues
	Year Ended December 31,																		Percentage Change (Favorable)/ Unfavorable
					Dollar Change					Constant Currency
	2009		2010				Actual						2009			2010
General and Administrative	$	433,654	$	446,175	$	12,521		2.9	%		2.1	%		15.6	%		15.4	%		(0.2	)%
Sales, Marketing & Account Management		208,127		214,977		6,850		3.3	%					7.5	%		7.4	%		(0.1	)%
Information Technology		99,159		99,858		699		0.7	%		1.0	%		3.6	%		3.5	%		(0.1	)%
Bad Debt Expense		8,994		11,801		2,807		31.2	%		15.1	%		0.3	%		0.4	%		0.1	%
	$	749,934	$	772,811	$	22,877		3.1	%		2.0	%		27.0	%		26.7	%		(0.3	)%

General and Administrative

        General and administrative expenses increased to 15.6% of consolidated revenues in the year ended December 31, 2011 compared to 15.4% in the year ended December 31, 2010. General and administrative expenses were unfavorably impacted by 1.5 percentage points due to currency rate changes during the year ended December 31, 2011. In constant currency terms, general and administrative expenses increased by $17.8 million in the year ended December 31, 2011 compared to the same period in 2010. The increase was primarily attributable to $15.0 million of advisory fees and other costs in the first and second quarter of 2011 associated with our 2011 proxy contest and a $16.1 million increase in incentive compensation, partially offset by a reduction of $16.2 million in other professional fees within North America related to productivity investments incurred in 2010 and which did not repeat in 2011.

        General and administrative expenses decreased to 15.4% of consolidated revenues in the year ended December 31, 2010 compared to 15.6% in the year ended December 31, 2009. General and administrative expenses were unfavorably impacted by 0.8 percentage points due to currency rate changes during the year ended December 31, 2010. In constant currency terms, general and administrative expenses increased by $9.4 million in the year ended December 31, 2010 as compared to the same period in 2009. The increase was primarily attributable to increased compensation expense of $8.8 million. The increased compensation during the year ended December 31, 2010 is primarily a result of merit increases, increased medical and other benefits, as well as increased headcount primarily related to our continued investment in our hybrid records management services of $19.6 million, all of which were partially offset by a reduction in incentive compensation of $10.9 million.

Sales, Marketing & Account Management

        Sales, marketing and account management expenses were unfavorably impacted by 1.8 percentage points due to currency rate changes during the year ended December 31, 2011. In constant currency terms, the increase of $26.3 million in the year ended December 31, 2011 is primarily related to increased sales and marketing expenses, primarily related to a planned incremental investment of $20.0 million within North America to sustain the revenue annuity, primarily resulting in increased compensation of $23.9 million, due to increased sales commissions, payroll tax expenses and incentive compensation.

        Sales, marketing and account management expenses were unfavorably impacted by 1.5 percentage points due to currency rate changes during the year ended December 31, 2010. In constant currency terms, the increase of $5.2 million in the year ended December 31, 2010 is primarily related to $2.9 million of increased marketing costs and $1.5 million of increased professional fees.

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Information Technology

        Information technology expenses were unfavorably impacted by 1.5 percentage points due to currency rate changes during the year ended December 31, 2011. In constant currency terms, information technology expenses increased $8.8 million during the year ended December 31, 2011 compared to the same period in 2010 due primarily to an increase in incentive compensation and related payroll taxes of $6.1 million and health insurance and other benefit costs of $2.9 million.

        Information technology expenses were favorably impacted by 0.3 percentage point due to currency rate changes during the year ended December 31, 2010. In constant currency terms, information technology expenses increased $0.5 million during the year ended December 31, 2010, primarily a result of increased overhead expenses of $5.4 million, partially offset by decreased compensation of $5.3 million, which offset was driven by lower incentive compensation.

Bad Debt Expense

        Consolidated bad debt expense for the year ended December 31, 2011 decreased $2.3 million to $9.5 million (0.3% of consolidated revenues) from $11.8 million (0.4% of consolidated revenues) for the year ended December 31, 2010. We maintain an allowance for doubtful accounts that is calculated based on our past loss experience, current and prior trends in our aged receivables, current economic conditions, and specific circumstances of individual receivable balances. We continue to monitor our customers' payment activity and make adjustments based on their financial condition and in light of historical and expected trends.

        Consolidated bad debt expense for the year ended December 31, 2010 increased $2.8 million to $11.8 million (0.4% of consolidated revenues) from $9.0 million (0.3% of consolidated revenues) for the year ended December 31, 2009.

Depreciation, Amortization, and (Gain) Loss on Disposal/Write-down of Property, Plant and Equipment, Net

        Depreciation expense increased $11.9 million and $25.7 million for the year ended December 31, 2011 and 2010, respectively, compared to the year ended December 31, 2010 and 2009, primarily due to additional depreciation expense related to capital expenditures and acquisitions, including storage systems, which include racking, building and leasehold improvements, computer systems, hardware and software, and buildings primarily in our International Business segment.

        Amortization expense increased $3.4 million for the year ended December 31, 2011, compared to the year ended December 31, 2010, primarily due to an increase of customer relationship intangible assets acquired related to the Poland acquisition. Amortization expense increased $1.3 million for the year ended December 31, 2010, compared to the year ended December 31, 2009, primarily due to the increased amortization of intangible assets, such as customer relationship intangible assets acquired through business combinations.

        Consolidated gain on disposal/write-down of property, plant and equipment, net of $2.3 million for the year ended December 31, 2011 consisted primarily of (a) a gain of approximately $3.2 million related to the disposition of a facility in Canada and (b) a gain of approximately $3.0 million on the retirement of leased vehicles accounted for as capital lease assets in North America, offset by (c) a loss associated with discontinued use of certain third-party software licenses of approximately $3.5 million (approximately $3.1 million associated with our International Business segment and approximately $0.4 million associated with our North American Business segment). Consolidated gain on disposal/write-down of property, plant and equipment, net of $11.0 million for the year ended December 31, 2010 consisted primarily of a gain of approximately $10.2 million as a result of the settlement with our insurers in connection with a portion of the property component of our claim related to the Chilean

49

earthquake in the third and fourth quarter of 2010, gains of approximately $3.2 million in North America primarily related to the disposition of certain owned equipment and a gain on disposal of a building in our International Business segment of approximately $1.3 million in the United Kingdom, offset by approximately $1.0 million of asset write-downs associated with our Latin American operations and approximately $2.6 million of impairment losses primarily related to certain owned facilities in North America. Consolidated loss on disposal/write-down of property, plant and equipment, net of $0.2 million for the year ended December 31, 2009, consisted primarily of a gain on disposal of a building in our International Business segment of approximately $1.9 million in France, offset by losses on the write-down of certain facilities of approximately $1.0 million in our North American Business segment, $0.7 million in our International Business segment and $0.3 million in Corporate (associated with discontinued products after implementation).

Intangible Impairments

        During the quarter ended September 30, 2010, prior to our annual goodwill impairment review, we concluded that events occurred and circumstances changed in our former worldwide digital business reporting unit that required us to conduct an impairment review. The primary factors contributing to our conclusion that we had a triggering event and a requirement to reassess our former worldwide digital business reporting unit goodwill for impairment included: (1) a reduction in forecasted revenue and operating results due to continued pressure on key parts of the business as a result of the weak economy; (2) reduced revenue and profit outlook for our eDiscovery service due to smaller average matter size and lower pricing; (3) a decision to discontinue certain software development projects; and (4) the sale of the Domain Name Product Line. As a result of the review, we recorded a provisional goodwill impairment charge associated with our former worldwide digital business reporting unit in the amount of $255.0 million during the quarter ended September 30, 2010. We finalized the estimate in the fourth quarter of 2010, and we recorded an additional impairment of $28.8 million, for a total goodwill impairment charge of $283.8 million. Based on a relative fair value basis, we allocated $85.9 million of this charge to the retained technology escrow services business, which continues to be included in our continuing results of operations. We retained our technology escrow services business, which had previously been reported in the former worldwide digital business segment along with the Digital Business and the Domain Name Product Line. The technology escrow services business is now reported in the North American Business segment.

        In September 2011, as a result of certain changes we made in the manner in which our European operations are managed, we reorganized our reporting structure and reassigned goodwill among the revised reporting units. As a result of the management and reporting changes, we concluded that we have three reporting units for our European operations: (1) UKI; (2) Western Europe; and (3) Central Europe. Due to these changes, we will perform all future goodwill impairment analysis on the new reporting unit basis. As a result of the restructuring of our reporting units, we concluded that we had an interim triggering event, and, therefore, we performed an interim goodwill impairment test for UKI, Western Europe and Central Europe in the third quarter of 2011 as of August 31, 2011. As required by GAAP, prior to our goodwill impairment analysis, we performed an impairment assessment on the long-lived assets within our UKI, Western Europe and Central Europe reporting units and noted no impairment, except for the Italian Business, which was included in our Western Europe reporting unit, and which is now included in discontinued operations below. Based on our analyses, we concluded that the goodwill of our UKI and Central Europe reporting units was not impaired. Our Western Europe reporting unit's fair value was less than its carrying value, and, as a result, we recorded a goodwill impairment charge of $46.5 million included as a component of intangible impairments from continuing operations in our consolidated statements of operations for the year ended December 31, 2011.

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OPERATING INCOME and ADJUSTED OIBDA

        As a result of the foregoing factors, consolidated operating income increased $23.7 million, or 4.3%, to $571.2 million (18.9% of consolidated revenues) for the year ended December 31, 2011 from $547.5 million (18.9% of consolidated revenues) for the year ended December 31, 2010. As a result of the foregoing factors, consolidated Adjusted OIBDA increased $8.2 million, or 0.9%, to $934.9 million (31.0% of consolidated revenues) for the year ended December 31, 2011 from $926.7 million (32.0% of consolidated revenues) for the year ended December 31, 2010.

        As a result of the foregoing factors, consolidated operating income increased $2.3 million, or 0.4%, to $547.5 million (18.9% of consolidated revenues) for the year ended December 31, 2010 from $545.2 million (19.7% of consolidated revenues) for the year ended December 31, 2009. As a result of the foregoing factors, consolidated Adjusted OIBDA increased $104.1 million, or 12.7%, to $926.7 million (32.0% of consolidated revenues) for the year ended December 31, 2010 from $822.6 million (29.6% of consolidated revenues) for the year ended December 31, 2009.

OTHER EXPENSES, NET

Interest Expense, Net

        Consolidated interest expense, net increased $0.7 million to $205.3 million (6.8% of consolidated revenues) for the year ended December 31, 2011 from $204.6 million (7.1% of consolidated revenues) for the year ended December 31, 2010 primarily due to the issuance of $400.0 million in aggregate principal of our 7³/4% Senior Subordinated Notes due 2019 (the "7³/4% Notes due 2019") in September 2011, which was partially offset by the early retirement of $431.3 million of our 7³/4% Senior Subordinated Notes due 2015 (the "7³/4% Notes due 2015") during late 2010 and early 2011. We expect that our interest expense will increase in fiscal year 2012 compared to 2011 as a result of the issuance of our 7³/4% Notes due 2019 as part of a planned increase in leverage to the midpoint of our 3x–4x target leverage ratio range. Our weighted average interest rate was 6.9% at both December 31, 2011 and December 31, 2010 and 7.0% at December 31, 2009.

        Consolidated interest expense, net decreased $8.0 million to $204.6 million (7.1% of consolidated revenues) for the year ended December 31, 2010 from $212.5 million (7.7% of consolidated revenues) for the year ended December 31, 2009 primarily due to a reduction in year-over-year short-term borrowings on our revolving credit facility, as well as a reduction in our outstanding borrowings due to the early retirement of $200.0 million of our 7³/4% Notes due 2015 during 2010.

Other (Income) Expense, Net (in thousands)

	Year Ended December 31,
						Dollar Change
	2010		2011
Foreign currency transaction losses (gains), net	$	5,664	$	17,352		$	11,688
Debt extinguishment expense, net		1,792		993			(799	)
Other, net		1,312		(5,302	)		(6,614	)
	$	8,768	$	13,043		$	4,275

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	Year Ended December 31,
						Dollar Change
	2009			2010
Foreign currency transaction (gains) losses, net	$	(12,845	)	$	5,664	$	18,509
Debt extinguishment expense, net		3,031			1,792		(1,239	)
Other, net		(2,785	)		1,312		4,097
	$	(12,599	)	$	8,768	$	21,367

        Net foreign currency transaction losses of $17.4 million, based on period-end exchange rates, were recorded in the year ended December 31, 2011. Losses were primarily a result of British pound sterling denominated debt and forward foreign currency swap contracts and changes in the exchange rate of the Euro, Russian Ruble and certain Latin American currencies against the U.S. dollar compared to December 31, 2010, as these currencies relate to our intercompany balances with and between our European and Latin American subsidiaries. Partially offsetting these losses were gains which resulted primarily from our Euro denominated bonds issued by IMI as well as changes in the exchange rate of the British pound sterling against the U.S. dollar compared to December 31, 2010, as these currencies relate to our intercompany balances with and between our United Kingdom subsidiaries.

        Net foreign currency transaction losses of $5.7 million, based on period-end exchange rates, were recorded in the year ended December 31, 2010. Losses resulted primarily from changes in the exchange rate of the British pounds sterling, the Euro and the Russian Ruble, offset by the Brazilian Real, against the U.S. dollar compared to December 31, 2009, as these currencies relate to our intercompany balances with and between our European and Latin American subsidiaries, and gains associated with our British pound sterling forward contracts, British pound sterling denominated debt and Euro denominated debt issued by IMI.

        Net foreign currency transaction gains of $12.9 million, based on period-end exchange rates, were recorded in the year ended December 31, 2009. Gains resulted primarily from changes in the exchange rate of the British pounds sterling, Euro, Brazilian Real and Chilean Peso against the U.S. dollar compared to December 31, 2008, as these currencies relate to our intercompany balances with and between our European and Latin American subsidiaries, offset by losses as a result of British pounds sterling and Euro denominated debt and forward foreign currency swap contracts held by our U.S. parent company.

        During the year ended December 31, 2011 we recorded a gain of approximately $0.9 million in the first quarter of 2011 related to the early extinguishment of $231.3 million of our 7³/4% Notes due 2015 that were redeemed. This gain consists of original issue premiums, net of deferred financing costs related to our 7³/4% Notes due 2015 that were redeemed. Additionally, we recorded a charge of $1.8 million in the second quarter of 2011 related to the early retirement of our previous revolving credit and term loan facilities, representing a write-off of deferred financing costs. During the year ended December 31, 2010, we redeemed $200.0 million of the $431.3 million aggregate principal amount outstanding of our 7³/4% Notes due 2015 at a redemption price of $1,012.92 for each one thousand dollars of principal amount of the notes redeemed, plus accrued and unpaid interest. We recorded a charge to other expense (income), net of $1.8 million in the third quarter of 2010 related to the early extinguishment of our 7³/4% Notes due 2015 that were redeemed. This charge consists of the call premium and deferred financing costs, net of original issue premiums related to our 7³/4% Notes due 2015 that were redeemed. During the year ended December 31, 2009, we redeemed our 8⁵/8% Senior Subordinated Notes due 2013 and wrote-off $3.0 million in associated deferred financing costs.

        Other, net for the year ended December 31, 2011 was a gain of $5.3 million, which primarily consists of a $5.9 million gain associated with the fair valuing of the 20% equity interest that we previously held in our Polish joint venture in connection with our acquisition of the remaining 80%

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interest in January 2011. Other, net in the year ended December 31, 2010 was a $1.3 million loss. Included in the loss for the year ended December 31, 2010 was $4.7 million of losses related to the impact of the change in IME's fiscal year-end. Since its inception, IME had operated with an October 31 fiscal year-end. IME's financial results had historically been consolidated with IMI's results with a two month lag. In order to better align our European processes with the enterprise, effective January 1, 2010, the IME fiscal year-end was changed to December 31 to match the Company's fiscal year-end. The $4.7 million charge represents the net impact of this change for the two years ended December 31, 2009. Partially offsetting this loss was $1.2 million of gains related to certain trading marketable securities held in a trust for the benefit of employees included in a deferred compensation plan we sponsor. Other, net in the year ended December 31, 2009 primarily consisted of $1.7 million of gains related to certain trading marketable securities held in a trust for the benefit of employees included in a deferred compensation plan we sponsor, in addition to $0.6 million of business interruption proceeds for an owned storage facility in France, which was taken by eminent domain in the first quarter of 2009.

Provision for Income Taxes

        Our effective tax rates for the years ended December 31, 2009, 2010 and 2011 were 32.9%, 50.1% and 30.2%, respectively. The primary reconciling items between the federal statutory rate of 35% and our overall effective tax rate for the year ended December 31, 2011 was the recognition of certain previously unrecognized tax benefits related to tax positions of prior years, expirations of statute of limitation periods and settlements with tax authorities in various jurisdictions and differences in the rates of tax at which our foreign earnings are subject, including foreign exchange gains and losses in different jurisdictions with different tax rates. This benefit was partially offset by state income taxes (net of federal benefit). Additionally, to a lesser extent, a goodwill impairment charge included in income from continuing operations as a component of intangible impairments in our consolidated statements of operations, of which a majority was non-deductible for tax purposes, is a reconciling item that impacts our effective tax rate. The primary reconciling item between the federal statutory rate of 35% and our overall effective tax rate for the year ended December 31, 2010 is a goodwill impairment charge included in income from continuing operations as a component of intangible impairments in our consolidated statements of operations, of which a majority was non-deductible for tax purposes. The negative impact of U.S. legislative changes reducing the expected utilization of foreign tax credits was offset by the recognition of certain previously unrecognized tax benefits due to expirations of statute of limitation periods and settlements with tax authorities in various jurisdictions. Additionally, to a lesser extent, state income taxes (net of federal benefit) and differences in the rates of tax at which our foreign earnings are subject, including foreign exchange gains and losses in different jurisdictions with different tax rates, are also reconciling items and impact our effective tax rate. In 2009, we had significant unrealized foreign exchange gains and losses on intercompany loans and on debt and derivative instruments in different jurisdictions with different tax rates. For 2009, foreign currency gains were recorded in lower tax jurisdictions associated with the marking-to-market of intercompany loan positions while foreign currency losses were recorded in higher tax jurisdictions associated with the marking-to-market of debt and derivative instruments, which reduced the effective tax rate for the year ended December 31, 2009.

        Our effective tax rate is subject to variability in the future due to, among other items: (1) changes in the mix of income from foreign jurisdictions; (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 foreign tax credits that we generate. We are subject to income taxes in the U.S. and numerous foreign jurisdictions. We are subject to examination by various tax authorities in jurisdictions in which we have significant business operations. We regularly assess the likelihood of additional assessments by tax authorities and provide for these matters as appropriate. Although we believe our tax estimates are

53

appropriate, the final determination of tax audits and any related litigation could result in changes in our estimates. Discrete items are recorded in the period they occur.

INCOME FROM CONTINUING OPERATIONS

        As a result of the foregoing factors, consolidated income from continuing operations for the year ended December 31, 2011 increased $79.7 million, or 47.8%, to $246.4 million (8.2% of consolidated revenues) from income from continuing operations of $166.7 million (5.8% of consolidated revenues) for the year ended December 31, 2010. The increase in income from continuing operations is primarily due to the year-over-year decrease of our provision for income taxes as described above and the goodwill impairment charge recorded in fiscal year 2010 associated with our technology escrow services business, which was previously a component of our former worldwide digital business segment, partially offset by the goodwill impairment charge recorded in fiscal year 2011 associated with our Western Europe reporting unit, as well as, the impact of foreign currency exchange rate fluctuations and the year-over-year change in the (gain) loss on disposal/write-down of property, plant and equipment, net.

        As a result of the foregoing factors, consolidated income from continuing operations for the year ended December 31, 2010 decreased $64.8 million, or 28.0%, to $166.7 million (5.8% of consolidated revenues) from income from continuing operations of $231.5 million (8.3% of consolidated revenues) for the year ended December 31, 2009. The decrease in income from continuing operations is primarily due to the goodwill impairment charge associated with our technology escrow services business, which was previously a component of our former worldwide digital business segment, as well as, foreign currency exchange rate impacts and the impact of the change in IME's fiscal year-end included in other (income) expense, net and the impact of our tax rate for 2010 and the resulting increase in the provision for income taxes described above.

INCOME (LOSS) FROM DISCONTINUED OPERATIONS AND GAIN (LOSS) ON SALE OF DISCONTINUED OPERATIONS

        Loss from discontinued operations was $(12.1) million, $(219.4) million and $(47.4) million for the years ended December 31, 2009, 2010 and 2011, respectively. We recorded a goodwill impairment charge associated with our former worldwide digital business reporting unit in the amount of $197.9 million during the year ended December 31, 2010 net of the amount allocated to the retained technology escrow services business, based on a relative fair value basis, which continues to be included in our continuing results of operations as previously discussed above. During 2011, we recorded an impairment charge of $4.9 million to write-down the long-lived assets of the New Zealand Business to its estimated net realizable value which is included in loss from discontinued operations. Additionally, we recorded a tax benefit of $7.9 million during 2011 associated with the outside tax basis of the New Zealand Business, which is also reflected in income (loss) from discontinued operations. Additionally, in conjunction with the goodwill impairment analysis performed associated with our Western Europe reporting unit, we performed an impairment test on the long-lived assets of our Italian Business in the third quarter of 2011. The undiscounted cash flows from the Italian Business were lower than the carrying value of the long-lived assets associated with the operations of the Italian Business and resulted in the requirement to fair value the long-lived assets of this lower level component. As a result, we recorded write-offs of other intangible assets, primarily customer relationship values of $8.0 million, and certain write-downs to property, plant and equipment (primarily racking) long-lived assets in Italy of $6.6 million in the third quarter of 2011, which are included in loss from discontinued operations. We allocated $2.5 million of the Western Europe goodwill impairment charge to the Italian Business which is included in loss from discontinued operations for the year ended December 31, 2011.

        Pursuant to the Digital Sale Agreement, we received approximately $395.4 million in cash, consisting of the initial purchase price of $380.0 million and a preliminary working capital adjustment of approximately $15.4 million, which remains subject to a customary post-closing adjustment based on

54

the amount of working capital at closing. The purchase price for the Digital Sale will be increased on a dollar-for-dollar basis if the working capital balance at the time of closing exceeds the target amount of working capital as set forth in the Digital Sale Agreement and decreased on a dollar-for-dollar basis if such closing working capital balance is less than the target amount. We and Autonomy are in disagreement regarding the working capital adjustment in the Digital Sale Agreement. As a result, as contemplated by the Digital Sale Agreement, the matter is being referred to an independent third party accounting firm for determination of the appropriate adjustment amount. Transaction costs relating to the Digital Sale amounted to approximately $7.4 million. Additionally, $11.1 million of inducements are payable to Autonomy and have been netted against the proceeds in calculating the gain on the Digital Sale. Also, a tax provision of $45.1 million associated with the gain recorded on the Digital Sale was recorded for the year ended December 31, 2011. A gain on sale of discontinued operations in the amount of $243.9 million ($198.7 million, net of tax) was recorded during the year ended December 31, 2011, as a result of the Digital Sale. We completed the sale of the New Zealand Business on October 3, 2011 for a purchase price of approximately $10.0 million. We recorded a gain on the sale of discontinued operations associated with the New Zealand Business of approximately $1.9 million during the fourth quarter of 2011. A gain on sale of discontinued operations of approximately $6.9 million ($2.8 million, net of tax) was recorded during the year ended December 31, 2010 associated with the divestiture of the Domain Name Product Line.

NONCONTROLLING INTERESTS

        For the year ended December 31, 2011, net income attributable to noncontrolling interests resulted in a decrease in net income attributable to Iron Mountain Incorporated of $4.1 million. For the year ended December 31, 2010, net income attributable to noncontrolling interests resulted in a decrease in net income attributable to Iron Mountain Incorporated of $4.9 million. For the year ended December 31, 2009, net income attributable to noncontrolling interests resulted in a reduction to net income attributable to Iron Mountain Incorporated of $1.4 million. These amounts represent our noncontrolling partners' share of earnings/losses in our majority-owned international subsidiaries that are consolidated in our operating results.

Segment Analysis (in thousands)

        As a result of the disposition of our Digital Business and New Zealand Business and our decision to sell the Italian Business as discussed in Note 14 to Notes to Consolidated Financial Statements, we changed our reportable segments. The most significant of these changes is that the reportable segment previously referred to as the worldwide digital business is no longer reported separately in our management reporting as the operations associated with the Domain Name Product Line and the Digital Business are reported as discontinued operations. Also, the technology escrow services business, which we continue to own and operate and was previously reported in the former worldwide digital business segment, is now reported in the North American Business segment. Additionally, the International Business segment no longer includes the New Zealand Business and the Italian Business as these operations are reported as discontinued operations.

        Our reportable operating segments are North American Business, International Business and Corporate. See Note 9 to Notes to Consolidated Financial Statements. Our North American Business segment offers information management services throughout the United States and Canada, including the storage of paper documents, as well as other media such as microfilm and microfiche, master audio and videotapes, film, X-rays and blueprints, including healthcare information services, vital records services, service and courier operations, and the collection, handling and disposal of sensitive documents for corporate customers ("Hard Copy"); the storage and rotation of backup computer media as part of corporate disaster recovery plans, including service and courier operations ("Data Protection"); information destruction services ("Destruction"); the scanning, imaging and document

55

conversion services of active and inactive records ("Hybrid Services"); the storage, assembly, and detailed reporting of customer marketing literature and delivery to sales offices, trade shows and prospective customers' sites based on current and prospective customer orders ("Fulfillment"), and technology escrow services that protect and manage source code. Our International Business segment offers information management services throughout Europe, Latin America and Asia Pacific, including Hard Copy, Data Protection, Destruction and Hybrid Services. Corporate consists of costs related to executive and staff functions, including finance, human resources and information technology, which benefit the enterprise as a whole. These costs are primarily related to the general management of these functions on a corporate level and the design and development of programs, policies and procedures that are then implemented in the individual segments, with each segment bearing its own cost of implementation. Corporate also includes stock-based employee compensation expense associated with all employee stock-based awards.

North American Business

										Percentage Change
	Year Ended December 31,
							Dollar Change						Constant Currency			Internal Growth
	2010			2011						Actual
Segment Revenue	$	2,193,464		$	2,229,143		$	35,679			1.6	%		1.2	%		1.1	%
Segment Adjusted OIBDA(1)	$	969,505		$	961,973		$	(7,532	)		(0.8	)%		(1.2	)%
Segment Adjusted OIBDA(1) as a Percentage of Segment Revenue		44.2	%		43.2	%

									Percentage Change
	Year Ended December 31,
							Dollar Change					Constant Currency			Internal Growth
	2009			2010					Actual
Segment Revenue	$	2,124,964		$	2,193,464		$	68,500		3.2	%		2.3	%		2.3	%
Segment Adjusted OIBDA(1)	$	866,356		$	969,505		$	103,149		11.9	%		11.0	%
Segment Adjusted OIBDA(1) as a Percentage of Segment Revenue		40.8	%		44.2	%

(1)

See Note 9 to Notes to the Consolidated Financial Statements for definition of Adjusted OIBDA and for the basis on which allocations are made and a reconciliation of Adjusted OIBDA to income (loss) from continuing operations before provision (benefit) for income taxes.

        During the year ended December 31, 2011, revenue in our North American Business segment increased 1.6% over the year ended December 31, 2010, primarily due to internal growth of 1.1%. Internal growth was due to storage internal growth of 2.2% related to increased new sales and lower volume outflows, partially offset by total service internal growth of negative 0.3%. Our core service revenues were constrained by lower service and activity levels partially offset by higher fuel surcharges, yielding negative internal growth of 1.4% for the year ended December 31, 2011, while our complementary service revenue yielded 2.5% internal growth as a result of higher pricing of recycled paper, as well as improved special project and product sales. Additionally, favorable foreign currency rate changes related to the Canadian dollar resulted in increased 2011 revenue, as measured in U.S. dollars, of 0.4% for the year ended December 31, 2011. Adjusted OIBDA as a percentage of segment revenue decreased for the year ended December 31, 2011 compared to the same period in 2010 due mainly to increases in sales and marketing expenses of $27.5 million, inclusive of a planned incremental investment of $20.0 million to sustain the revenue annuity, and higher incentive compensation accruals of $20.6 million, partially offset by a constant currency increase in revenue of

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$26.0 million and a reduction of $16.2 million in professional fees related to productivity investments incurred in 2010 and which did not repeat in 2011.

        During the year ended December 31, 2010, revenue in our North American Business segment increased 3.2% over the year ended December 31, 2009, primarily due to internal growth of 2.3%. Total revenue internal growth was comprised of storage internal growth of 2.3% related to increased Hard Copy and Data Protection revenues and service internal growth of 2.4%. Economic factors led to a moderation in our storage growth rate as a result of reduced average net pricing gains due to the current low inflationary environment, episodic destructions in the data protection business and lower new sales and higher destruction rates in our physical business over the past year. Core service revenue growth was also constrained by economic trends and pressures on activity-based services revenues related to the handling and transportation of items in storage. Our core services business yielded negative internal growth of 2.2%, which was more than offset by complementary services revenues internal growth of 16.3%, due primarily to higher recycled paper prices and gains in hybrid service revenues. Additionally, favorable foreign currency rate changes related to Canada resulted in increased 2010 revenue, as measured in U.S. dollars, of 0.9%. Adjusted OIBDA as a percentage of segment revenue increased in 2010 due mainly to productivity gains and disciplined cost management, partially offset by a $5.5 million increase in general and administrative compensation and a $1.4 million increase in bad debt expense.

International Business

									Percentage Change
	Year Ended December 31,
							Dollar Change					Constant Currency			Internal Growth
	2010			2011					Actual
Segment Revenue	$	698,885		$	785,560		$	86,675		12.4	%		7.2	%		4.3	%
Segment Adjusted OIBDA(1)	$	130,969		$	164,212		$	33,243		25.4	%		19.0	%
Segment Adjusted OIBDA(1) as a Percentage of Segment Revenue		18.7	%		20.9	%

									Percentage Change
	Year Ended December 31,
							Dollar Change					Constant Currency			Internal Growth
	2009			2010					Actual
Segment Revenue	$	649,420		$	698,885		$	49,465		7.6	%		4.9	%		5.3	%
Segment Adjusted OIBDA(1)	$	120,482		$	130,969		$	10,487		8.7	%		3.0	%
Segment Adjusted OIBDA(1) as a Percentage of Segment Revenue		18.6	%		18.7	%

(1)

See Note 9 to Notes to the Consolidated Financial Statements for definition of Adjusted OIBDA and for the basis on which allocations are made and a reconciliation of Adjusted OIBDA to income (loss) from continuing operations before provision (benefit) for income taxes.

        Revenue in our International Business segment increased 12.4% during the year ended December 31, 2011 over 2010 due to internal growth of 4.3% and foreign currency fluctuations in 2011, primarily in Europe, which resulted in increased 2011 revenue, as measured in U.S. dollars, of approximately 5.1% as compared to 2010. Total internal revenue growth for the segment for the year ended December 31, 2011 was supported by solid 6.2% storage internal growth and total service internal growth of 2.3%. Acquisitions contributed 3.0% of the increase in total reported international revenues in the year ended December 31, 2011, primarily due to our acquisitions in Poland in the first

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quarter of 2011 and Greece in the second quarter of 2010. Adjusted OIBDA as a percentage of segment revenue increased in the year ended December 31, 2011 compared to the same period in 2010 primarily due to increased operating income from productivity gains, pricing actions and disciplined cost management, offset by $5.9 million of additional productivity investments.

        Revenue in our International Business segment increased 7.6% during the year ended December 31, 2010 over 2009 due to internal revenue growth of 5.3% supported by storage internal growth of 6.0% and core services internal growth of 2.4%. The impact of acquisitions increased reported revenue by 0.3% in 2010. Foreign currency fluctuations in 2010, primarily in Europe, resulted in increased 2010 revenue, as measured in U.S. dollars, of approximately 2.0% as compared to 2009. Adjusted OIBDA increased in 2010 by $10.5 million compared to the same period in 2009 due to increased operating income from productivity gains, pricing actions and disciplined cost management, partially offset by increased compensation expense of $9.5 million primarily related to investments in our hybrid records management services, as well as one-time cost accruals recorded in 2010 of approximately $7.4 million.

Corporate

										Dollar Change						Percentage Change
	Year Ended December 31,
										from 2009 to 2010			from 2010 to 2011			from 2009 to 2010			from 2010 to 2011
	2009			2010			2011
Segment Adjusted OIBDA(1)	$	(164,259	)	$	(173,798	)	$	(191,273	)	$	(9,539	)	$	(17,475	)		(5.8	)%		(10.1	)%
Segment Adjusted OIBDA(1) as a Percentage of Consolidated Revenue		(5.9	)%		(6.0	)%		(6.3	)%

(1)

See Note 9 to Notes to the Consolidated Financial Statements for definition of Adjusted OIBDA and for the basis on which allocations are made and a reconciliation of Adjusted OIBDA to income (loss) from continuing operations before provision (benefit) for income taxes.

        During the year ended December 31, 2011, expenses in the Corporate segment as a percentage of consolidated revenues increased 10.1% over 2010. This increase was primarily due to $15.0 million of advisory fees and other costs associated with our 2011 proxy contest.

        During the year ended December 31, 2010, expenses in the Corporate segment increased 5.8% over 2009. This increase was primarily driven by increased sales, marketing and account management expenses of $6.0 million, higher professional fees of $2.2 million related to productivity and cost saving initiatives, an insurance deductible of $2.8 million associated with earthquakes, increased stock-based compensation of $2.1 million and increased marketing expenses, partially offset by a reduction in incentive compensation.

Liquidity and Capital Resources

        The following is a summary of our cash balances and cash flows (in thousands) as of and for the years ended December 31,

	2009			2010			2011
Cash flows from operating activities—continuing operations	$	586,570		$	603,229		$	663,514
Cash flows from investing activities—continuing operations		(298,699	)		(298,458	)		(302,213	)
Cash flows from financing activities—continuing operations		(128,286	)		(379,711	)		(762,670	)
Cash and cash equivalents at the end of year		446,656			258,693			179,845

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        Net cash provided by operating activities from continuing operations was $663.5 million for the year ended December 31, 2011 compared to $603.2 million for the year ended December 31, 2010. The 10.0% increase resulted primarily from an increase in net income, excluding non-cash charges of $31.3 million, a decrease in cash used for working capital of $23.9 million and a decrease in realized foreign exchange losses of $5.1 million over the same period last year. Uses of working capital are primarily related to lower taxes paid from continuing operations, excluding the $52.4 million of taxes paid as a result of the sale of our Digital Business which is classified in discontinued operations, lower amounts paid for cash interest and cash incentive compensation in fiscal year 2011 compared to fiscal year 2010, partially offset by a reduction in cash collections from customers associated with accounts receivable. We expect our cash flows provided by operating activities from continuing operations to decrease in fiscal year 2012 as a result of a reduction in Adjusted OIBDA related to lower recycled paper revenues, combined with higher interest costs and higher incentive compensation payouts compared to fiscal year 2011.

        Our business requires significant capital expenditures to support our expected revenue growth and ongoing operations as well as new products and services and increased profitability. These expenditures are included in the cash flows from investing activities from continuing operations. The nature of our capital expenditures has evolved over time along with the nature of our business. We make capital expenditures to support a number of different objectives. The majority of our capital goes to support business line growth and our ongoing operations, but we also expend capital to support the development and improvement of products and services and projects designed to increase our profitability. These expenditures are generally small and more discretionary in nature. Cash paid for our capital expenditures, cash paid for acquisitions (net of cash acquired) and additions to customer acquisition costs during the year ended December 31, 2011 amounted to $209.2 million, $75.2 million and $21.7 million, respectively. For the year ended December 31, 2011, capital expenditures, net, cash paid for acquisitions (net of cash acquired) and additions to customer acquisition costs were funded with cash flows provided by operating activities from continuing operations and cash equivalents on hand. Excluding potential future acquisitions, we expect our capital expenditures to be approximately $215.0 million in the year ending December 31, 2012. Included in our estimated capital expenditures for 2012 is approximately $25.0 million of real estate purchases.

        Net cash used in financing activities from continuing operations was $762.7 million for the year ended December 31, 2011. During 2011, we received (i) $394.0 million in proceeds from the issuance of our 7³/4% Notes due 2019; (ii) net borrowings under our revolving credit and term loan facilities and other debt of $153.8 million; and (iii) $85.7 million of proceeds from the exercise of stock options and purchases under the employee stock purchase plan. We used the proceeds from these financing transactions and cash on hand: (i) for the early retirement of $231.3 million of our 7³/4% Notes due 2015; (ii) to repurchase $985.0 million of our common stock; (iii) to pay dividends in the amount of $172.6 million on our common stock; and (iv) to fund debt financing costs of $9.0 million.

        Our board of directors has authorized up to $1.2 billion in repurchases of our common stock. All purchases are subject to stock price, market conditions, corporate and legal requirements and other factors. As of December 31, 2011, we had a remaining amount available for repurchase under our share repurchase program of $100.7 million, which represents approximately 2% in the aggregate of our outstanding common stock based on the closing price on such date.

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        The following table is a summary of our repurchase activity under all of our share repurchase programs during 2011:

	2011
	Shares		Amount(1)
			(In thousands)
Authorizations remaining as of January 1,			$	238,532
Additional Authorizations				850,000
Repurchases paid		31,743,886		(984,469	)
Repurchases unsettled		109,532		(3,362	)
Authorization remaining as of December 31,			$	100,701	(2)

(1)

Amount excludes commissions paid associated with share repurchases.

(2)

Between January 1, 2012 and February 10, 2012, we repurchased an additional 1.1 million shares of our common stock for an aggregate purchase price of $34.7 million, reducing our remaining authorization to approximately $66.0 million.

        In February 2010, our board of directors adopted a dividend policy under which we have paid and in the future intend to pay quarterly cash dividends on our common stock. Declaration and payment of future quarterly dividends is at the discretion of our board of directors. In fiscal years 2010 and 2011, our board of directors declared the following dividends:

Declaration Date	Dividend Per Share		Record Date		Total Amount		Payment Date
					(in thousands)
March 25, 2010	$	0.0625		March 25, 2010	$	12,720		April 15, 2010
June 4, 2010		0.0625		June 25, 2010		12,641		July 15, 2010
September 15, 2010		0.0625		September 28, 2010		12,532		October 15, 2010
December 10, 2010		0.1875		December 27, 2010		37,514		January 14, 2011
March 11, 2011		0.1875		March 25, 2011		37,601		April 15, 2011
June 10, 2011		0.2500		June 24, 2011		50,694		July 15, 2011
September 8, 2011		0.2500		September 23, 2011		46,877		October 14, 2011
December 1, 2011		0.2500		December 23, 2011		43,180		January 13, 2012

        We are committed to stockholder payouts through a combination of share buybacks, ongoing quarterly dividends and potential one-time dividends of approximately $2.2 billion through 2013, with approximately $1.2 billion of capital returned to stockholders by May 2012. Through February 10, 2012, we have returned approximately $1.15 billion to stockholders against these commitments. We expect to fund future payouts with cash flows from operations and borrowings under existing and potentially additional debt instruments. With regard to our levels of indebtedness, we plan to operate around the mid-point of our target leverage ratio range of 3x—4x EBITDA (as defined in our revolving credit facility).

        Financial instruments that potentially subject us to market risk consist principally of cash and cash equivalents (including money market funds and time deposits), restricted cash (primarily U.S. Treasuries) and accounts receivable. The only significant concentrations of liquid investments as of December 31, 2011 relate to cash and cash equivalents and restricted cash held on deposit with five global banks and one "Triple A" rated money market fund which we consider to be large, highly-rated investment-grade institutions. As per our risk management investment policy, we limit exposure to concentration of credit risk by limiting the amount invested in any one mutual fund or financial institution to a maximum of $50.0 million. As of December 31, 2011, our cash and cash equivalents and

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restricted cash balance was $215.0 million, including a money market fund and time deposits amounting to $181.8 million. A substantial portion of the money market fund is invested in U.S. Treasuries.

        We are highly leveraged and expect to continue to be highly leveraged for the foreseeable future. Our consolidated debt as of December 31, 2011 was comprised of the following (in thousands):

New Revolving Credit Facility(1)	$	96,000
New Term Loan Facility(1)		487,500
71/4% GBP Senior Subordinated Notes due 2014 (the "71/4% Notes")(2)		233,115
65/8% Senior Subordinated Notes due 2016 (the "65/8% Notes")(2)		318,025
71/2% CAD Senior Subordinated Notes due 2017 (the "Subsidiary Notes")(3)		171,273
83/4% Senior Subordinated Notes due 2018 (the "83/4% Notes")(2)		200,000
8% Senior Subordinated Notes due 2018 (the "8% Notes")(2)		49,806
63/4% Euro Senior Subordinated Notes due 2018 (the "63/4% Notes")(2)		328,750
73/4% Senior Subordinated Notes due 2019 (the "73/4% Notes due 2019")(2)		400,000
8% Senior Subordinated Notes due 2020 (the "8% Notes due 2020")(2)		300,000
83/8% Senior Subordinated Notes due 2021 (the "83/8% Notes")(2)		548,346
Real Estate Mortgages, Capital Leases and Other (4)		220,773
Total Long-term Debt		3,353,588
Less Current Portion		(73,320	)
Long-term Debt, Net of Current Portion	$	3,280,268

(1)

The capital stock or other equity interests of most of our U.S. subsidiaries, and up to 66% of the capital stock or other equity interests of our first-tier foreign subsidiaries, are pledged to secure these debt instruments, together with all intercompany obligations of foreign subsidiaries owed to us or to one of our U.S. subsidiary guarantors.

(2)

Collectively, the "Parent Notes". IMI is the direct obligor on the Parent Notes, which are fully and unconditionally guaranteed, on a senior subordinated basis, by substantially all of its direct and indirect wholly owned U.S. subsidiaries (the "Guarantors"). These guarantees are joint and several obligations of the Guarantors. Iron Mountain Canada Corporation ("Canada Company") and the remainder of our subsidiaries do not guarantee the Parent Notes.

(3)

Canada Company is the direct obligor on the Subsidiary Notes, which are fully and unconditionally guaranteed, on a senior subordinated basis, by IMI and the Guarantors. These guarantees are joint and several obligations of IMI and the Guarantors.

(4)

Includes (a) real estate mortgages of $5.2 million, (b) capital lease obligations of $207.3 million, and (c) other various notes and other obligations, which were assumed by us as a result of certain acquisitions, of $8.2 million.

        On June 27, 2011, we entered into a new credit agreement to replace the IMI revolving credit facility and the IMI term loan facility, each entered into on April 16, 2007. The new credit agreement consists of (i) revolving credit facilities under which we can borrow, subject to certain limitations as defined in the new credit agreement, up to an aggregate amount of $725.0 million (including Canadian dollars, British pounds sterling and Euros, among other currencies) (the "New Revolving Credit Facility") and (ii) a $500.0 million term loan facility (the "New Term Loan Facility," and collectively with the New Revolving Credit Facility, the "New Credit Agreement"). We have the right to increase the aggregate amount available to be borrowed under the New Credit Agreement up to a maximum of $1.8 billion. The New Revolving Credit Facility is supported by a group of 19 banks. IMI, Iron Mountain Information Management, Inc. ("IMIM"), Canada Company, IME, Iron Mountain Australia Pty Ltd., Iron Mountain Switzerland Gmbh and any other subsidiary of IMIM designated by IMIM

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(the "Other Subsidiaries") may, with the consent of the administrative agent, as defined in the New Credit Agreement, borrow under certain of the following tranches of the New Revolving Credit Facility: (a) tranche one in the amount of $400.0 million is available to IMI and IMIM in U.S. dollars, British pounds sterling and Euros, (b) tranche two in the amount of $150.0 million is available to IMI or IMIM in either U.S. dollars or Canadian dollars and available to Canada Company in Canadian dollars and (c) tranche three in the amount of $175.0 million is available to IMI or IMIM and the Other Subsidiaries in U.S. dollars, Canadian dollars, British pounds sterling, Euros and Australian dollars, among others. The New Revolving Credit Facility terminates on June 27, 2016, at which point all revolving credit loans under such facility become due. With respect to the New Term Loan Facility, loan payments are required through maturity on June 27, 2016 in equal quarterly installments of the aggregate annual amounts based upon the following percentage of the original principal amount in the table below (except that each of the first three quarterly installments in the fifth year shall be 10% of the original principal amount and the final quarterly installment in the fifth year shall be 35% of the original principal):

Year Ended	Percentage
June 30, 2012		5%
June 30, 2013		5%
June 30, 2014		10%
June 30, 2015		15%
June 27, 2016		65%

        The New Term Loan Facility may be prepaid without penalty or premium, in whole or in part, at any time. IMI and IMIM guarantee the obligations of each of the subsidiary borrowers. The capital stock or other equity interests of most of the U.S. subsidiaries, and up to 66% of the capital stock or other equity interests of our first-tier foreign subsidiaries, are pledged to secure the New Credit Agreement, together with all intercompany obligations of foreign subsidiaries owed to us or to one of our U.S. subsidiary guarantors. The interest rate on borrowings under the New Credit Agreement varies depending on our choice of interest rate and currency options, plus an applicable margin, which varies based on certain financial ratios. Additionally, the New Credit Agreement requires the payment of a commitment fee on the unused portion of the revolving credit facility, which fee ranges from between 0.3% to 0.5% based on certain financial ratios, as well as fees associated with any outstanding letters of credit. Proceeds from the New Credit Agreement are for general corporate purposes and were used to repay the previous revolving credit and term loan facilities. We recorded a charge of $1.8 million to other expense (income), net in the second quarter of 2011 related to the early retirement of the previous revolving credit and term loan facilities, representing a write-off of deferred financings costs. As of December 31, 2011, we had $96.0 million of outstanding borrowings under the New Revolving Credit Facility, all of which was denominated in U.S. dollars; we also had various outstanding letters of credit totaling $5.8 million. The remaining availability on December 31, 2011, based on IMI's leverage ratio, which is calculated based on the last 12 months' earnings before interest, taxes, depreciation and amortization ("EBITDA"), and other adjustments as defined in the New Credit Agreement and current external debt, under the New Revolving Credit Facility was $623.2 million. The interest rate in effect under the New Revolving Credit Facility and New Term Loan Facility was 4.0% and 2.3%, respectively, as of December 31, 2011.

        The New 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 New Credit Agreement, our indentures or other agreements governing our indebtedness. The New Credit Agreement, as well as our indentures, use EBITDA-based calculations as primary measures of financial performance, including leverage and fixed

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charge coverage ratios. IMI's revolving credit and term leverage ratio was 2.9 and 3.4 as of December 31, 2010 and 2011, respectively, compared to a maximum allowable ratio of 5.5. Similarly, our bond leverage ratio, per the indentures, was 3.4 and 3.9 as of December 31, 2010 and 2011, respectively, compared to a maximum allowable ratio of 6.5. IMI's revolving credit and term loan fixed charge coverage ratio was 1.5 as of December 31, 2011, compared to a minimum allowable ratio of 1.2. Noncompliance with these leverage and fixed charge coverage ratios would have a material adverse effect on our financial condition and liquidity.

        Our ability to pay interest on or to refinance our indebtedness depends on our future performance, working capital levels and capital structure, which are subject to general economic, financial, competitive, legislative, regulatory and other factors which may be beyond our control. There can be no assurance that we will generate sufficient cash flow from our operations or that future financings will be available on acceptable terms or in amounts sufficient to enable us to service or refinance our indebtedness or to make necessary capital expenditures.

        In January 2011, we redeemed the remaining $231.3 million aggregate principal amount outstanding of our 7³/4% Notes due 2015 at a redemption price of one thousand dollars for each one thousand dollars of principal amount of notes redeemed, plus accrued and unpaid interest. We recorded a gain to other expense (income), net of approximately $0.9 million in the first quarter of 2011 related to the early extinguishment of our 7³/4% Notes due 2015 that were redeemed. This gain consists of original issue premiums, net of deferred financing costs related to our 7³/4% Notes due 2015 that were redeemed.

        On June 2, 2011, we completed the sale of the Digital Business to Autonomy. Pursuant to the Digital Sale Agreement, we received approximately $395.4 million in cash, consisting of the initial purchase price of $380.0 million and a preliminary working capital adjustment of approximately $15.4 million, which remains subject to a customary post-closing adjustment based on the amount of working capital at closing. The purchase price for the Digital Sale will be increased on a dollar-for-dollar basis if the working capital balance at the time of closing exceeds the target amount of working capital as set forth in the Digital Sale Agreement and decreased on a dollar-for-dollar basis if such closing working capital balance is less than the target amount. We and Autonomy are in disagreement regarding the working capital adjustment in the Digital Sale Agreement. As a result, as contemplated by the Digital Sale Agreement, the matter is being referred to an independent third party accounting firm for determination of the appropriate adjustment. Transaction costs related to the Digital Sale amounted to approximately $7.4 million. Additionally, $11.1 million of inducements are payable to Autonomy and have been netted against the proceeds in calculating the gain on the Digital Sale. We used the net proceeds received from the Digital Sale to pay down amounts outstanding under our revolving credit facility and used $52.4 million of the net proceeds to fund cash taxes due as a result of the Digital Sale.

        In September 2011, we completed an underwritten public offering of $400.0 million in aggregate principal amount of our 7³/4% Notes due 2019, which were issued at 100% of par. Our net proceeds of $394.0 million after paying the underwriters' discounts and commissions, were used for general corporate purposes, including funding a portion of the stockholder payout commitments we have made.

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Contractual Obligations

        The following table summarizes our contractual obligations as of December 31, 2011 and the anticipated effect of these obligations on our liquidity in future years (in thousands):

	Payments Due by Period
	Total		Less than 1 Year		1–3 Years		3–5 Years		More than 5 Years
Capital Lease Obligations	$	207,300	$	41,028	$	64,029	$	26,578	$	75,665
Long-Term Debt Obligations (excluding Capital Lease Obligations)		3,151,895		32,292		336,343		779,770		2,003,490
Interest Payments(1)		1,547,822		223,402		428,151		369,409		526,860
Operating Lease Obligations(2)(3)		2,698,542		217,634		403,095		365,486		1,712,327
Purchase and Asset Retirement Obligations(4)		68,580		36,352		20,346		1,325		10,557
Total(3)(5)	$	7,674,139	$	550,708	$	1,251,964	$	1,542,568	$	4,328,899

(1)

Amounts include variable rate interest payments, which are calculated utilizing the applicable interest rates as of December 31, 2011; see Note 4 to Notes to Consolidated Financial Statements. Amounts also include interest on capital leases.

(2)

Amounts are offset by sublease income of $10.6 million in total (including $2.3 million, $3.6 million, $2.8 million and $1.9 million, in less than 1 year, 1–3 years, 3–5 years and more than 5 years, respectively).

(3)

Includes aggregate amounts related to our Italian Business of $2.6 million, $3.7 million, $3.5 million, $8.2 million ($18.0 million in total) in less than 1 year, 1–3 years, 3–5 years and more than 5 years, respectively.

(4)

In connection with some of our acquisitions, we have potential earn-out obligations that may be payable in the event businesses we acquired meet certain financial objectives. These payments are based on the future results of these operations, and our estimate of the maximum contingent earn-out payments we may be required to make under all such agreements as of December 31, 2011 is approximately $4.5 million.

(5)

The table above excludes $31.4 million in uncertain tax positions as we are unable to make reasonably reliable estimates of the period of cash settlement, if any, with the respective taxing authorities.

        We expect to meet our cash flow requirements for the next twelve months from cash generated from operations, existing cash, cash equivalents, borrowings under the New Credit Agreement and other financings, which may include secured credit facilities, securitizations and mortgage or capital lease financings. We expect to meet our long-term cash flow requirements using the same means described above, as well as the potential issuance of debt or equity securities as we deem appropriate.

Off-Balance Sheet Arrangements

        We have no off-balance sheet arrangements as defined in Regulation S-K Item 303(a)(4)(ii).

Net Operating Losses and Foreign Tax Credit Carryforwards

        We have federal net operating loss carryforwards which begin to expire in 2020 through 2025 of $28.2 million ($9.9 million, tax effected) at December 31, 2011 to reduce future federal taxable income. We have an asset for state net operating losses of $7.9 million (net of federal tax benefit), which begins

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to expire in 2012 through 2025, subject to a valuation allowance of approximately 99%. We have assets for foreign net operating losses of $40.3 million, with various expiration dates, subject to a valuation allowance of approximately 69%. We also have foreign tax credits of $56.6 million, which begin to expire in 2014 through 2019, subject to a valuation allowance of approximately 65%. U.S. legislative changes in 2010 reduced the expected utilization of foreign tax credits which resulted in the requirement for a valuation allowance.

Inflation

        Certain of our expenses, such as wages and benefits, insurance, occupancy costs and equipment repair and replacement, are subject to normal inflationary pressures. Although to date we have been able to offset inflationary cost increases through increased operating efficiencies and the negotiation of favorable long-term real estate leases, we can give no assurance that we will be able to offset any future inflationary cost increases through similar efficiencies, leases or increased storage or service charges.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk.

Market Risk

        Financial instruments that potentially subject us to market risk consist principally of cash and cash equivalents (including money market funds and time deposits), restricted cash (primarily U.S. Treasuries) and accounts receivable. The only significant concentrations of liquid investments as of December 31, 2011 relate to cash and cash equivalents and restricted cash held on deposit with five global banks and one "Triple A" rated money market fund which we consider to be large, highly-rated investment-grade institutions. As per our risk management investment policy, we limit exposure to concentration of credit risk by limiting the amount invested in any one mutual fund or financial institution to a maximum of $50.0 million. As of December 31, 2011, our cash and cash equivalents and restricted cash balance was $215.0 million, including a money market fund and time deposits amounting to $181.8 million. A substantial portion of the money market fund is invested in U.S. Treasuries.

Interest Rate Risk

        Given the recurring nature of our revenues and the long-term nature of our asset base, we have the ability and the preference to use long-term, fixed interest rate debt to finance our business, thereby helping to preserve our long-term returns on invested capital. We target approximately 75% of our debt portfolio to be fixed with respect to interest rates. Occasionally, we will use interest rate swaps as a tool to maintain our targeted level of fixed rate debt. See Notes 3 and 4 to Notes to Consolidated Financial Statements.

        As of December 31, 2011, we had $586.7 million of variable rate debt outstanding with a weighted average variable interest rate of approximately 2.6%, and $2,766.9 million of fixed rate debt outstanding. As of December 31, 2011, approximately 82.5% of our total debt outstanding was fixed. If the weighted average variable interest rate on our variable rate debt had increased by 1%, our net income for the year ended December 31, 2011 would have been reduced by approximately $3.4 million. See Note 4 to Notes to Consolidated Financial Statements for a discussion of our long-term indebtedness, including the fair values of such indebtedness as of December 31, 2011.

Currency Risk

        Our investments in IME, Canada Company, Iron Mountain Mexico, SA de RL de CV, Iron Mountain South America, Ltd., Iron Mountain Australia Pty Ltd. and our other international investments may be subject to risks and uncertainties related to fluctuations in currency valuation. Our reporting currency is the U.S. dollar. However, our international revenues and expenses are generated in the currencies of the countries in which we operate, primarily the Euro, Canadian dollar

65

and British pound sterling. Declines in the value of the local currencies in which we are paid relative to the U.S. dollar will cause revenues in U.S. dollar terms to decrease and dollar-denominated liabilities to increase in local currency.

        The impact of currency fluctuations on our earnings is mitigated significantly by the fact that most operating and other expenses are also incurred and paid in the local currency. We also have several intercompany obligations between our foreign subsidiaries and IMI and our U.S.-based subsidiaries. In addition, Iron Mountain Switzerland GmbH, our foreign subsidiaries and IME also have intercompany obligations between them. These intercompany obligations are primarily denominated in the local currency of the foreign subsidiary.

        We have adopted and implemented a number of strategies to mitigate the risks associated with fluctuations in currency valuations. One strategy is to finance certain of our international subsidiaries with debt that is denominated in local currencies, thereby providing a natural hedge. In determining the amount of any such financing, we take into account local tax strategies, among other factors. Another strategy we utilize is for IMI or IMIM to borrow in foreign currencies to hedge our intercompany financing activities. In addition, on occasion, we enter into currency swaps to temporarily or permanently hedge an overseas investment, such as a major acquisition, to lock in certain transaction economics. We have implemented these strategies for our foreign investments in the United Kingdom, Continental Europe and Canada. Specifically, through our 150.0 million British pounds sterling denominated 7¹/4% Senior Subordinated Notes due 2014 and our 255.0 million 6³/4% Euro Senior Subordinated Notes due 2018, we effectively hedge most of our outstanding intercompany loans denominated in British pounds sterling and Euros. Canada Company has financed its capital needs through direct borrowings in Canadian dollars under the Credit Agreement and its 175.0 million CAD denominated 7¹/2% Senior Subordinated Notes due 2017. This creates a tax efficient natural currency hedge. In the third quarter of 2007, we designated a portion of our 6³/4% Euro Senior Subordinated Notes due 2018 issued by IMI as a hedge of net investment of certain of our Euro denominated subsidiaries. As a result, we recorded $8.6 million ($5.4 million, net of tax) of foreign exchange gains related to the "marking-to-market" of such debt to currency translation adjustments which is a component of accumulated other comprehensive items, net included in equity for the year ended December 31, 2011. As of December 31, 2011, net gains of $13.4 million are recorded in accumulated other comprehensive items, net associated with this net investment hedge.

        We have also entered into a number of separate forward contracts to hedge our exposures to British pounds sterling and Australian dollars. As of December 31, 2011, we had an outstanding forward contract to purchase $195.6 million U.S. dollars and sell 125.0 million British pounds sterling to hedge our intercompany exposures with IME. As of December 31, 2011, we had an outstanding forward contract to purchase $75.1 million U.S. dollars and sell 73.0 million Australian dollars to hedge our intercompany exposures with our Australian subsidiary. At the maturity of the forward contracts, we may enter into new forward contracts to hedge movements in the underlying currencies. At the time of settlement, we either pay or receive the net settlement amount from the forward contract and recognize this amount in other expense (income), net in the accompanying statement of operations as a realized foreign exchange gain or loss. We have not designated these forward contracts as hedges. At the end of each month, we mark the outstanding forward contracts to market and record an unrealized foreign exchange gain or loss for the mark-to-market valuation. During the year ended December 31, 2011, there was $1.1 million in net cash disbursements included in cash from operating activities from continuing operations related to settlements associated with these foreign currency forward contracts. We recorded net gains in connection with these forward contracts of $1.2 million (including an unrealized foreign exchange gain of $2.0 million related to certain British pound sterling forward contracts and an unrealized foreign exchange gain of $0.8 million related to the Australian dollar forward contract offset by an unrealized foreign exchange loss of $0.4 million related to a British pound sterling forward contract) in other expense (income), net in the accompanying statement of

66

operations as of December 31, 2011, respectively. As of December 31, 2011, except as noted above, our currency exposures to intercompany balances are not hedged.

        The impact of devaluation or depreciating currency on an entity depends on the residual effect on the local economy and the ability of an entity to raise prices and/or reduce expenses. Due to our constantly changing currency exposure and the potential substantial volatility of currency exchange rates, we cannot predict the effect of exchange fluctuations on our business. The effect of a change in foreign exchange rates on our net investment in foreign subsidiaries is reflected in the "Accumulated Other Comprehensive Items, net" component of equity. A 10% depreciation in year-end 2011 functional currencies, relative to the U.S. dollar, would result in a reduction in our equity of approximately $79.8 million.

Item 8. Financial Statements and Supplementary Data.

        The information required by this item is included in Item 15(a) of this Annual Report on Form 10-K.

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.

        None.

Item 9A. Controls and Procedures.

Disclosure Controls and Procedures

        The term "disclosure controls and procedures" is defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act. These rules refer to the controls and other procedures of a company that are designed to ensure that information is recorded, processed, summarized and communicated to management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding what is required to be disclosed by a company in the reports that it files under the Exchange Act. As of December 31, 2011 (the "Evaluation Date"), we carried out an evaluation, under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, of the effectiveness of our disclosure controls and procedures. Based upon that evaluation, our chief executive officer and chief financial officer concluded that, as of the Evaluation Date, our disclosure controls and procedures were not effective due to a material weakness in our internal control over identification and monitoring of price reduction clauses in certain U.S. government customer contracts as described below.

Management's Report on Internal Control over Financial Reporting

        Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act. Due to their inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risks that controls may become inadequate because of changes in conditions or that the degree of compliance with policies or procedures may deteriorate. Under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, our management concluded that our internal control over financial reporting was not effective as of December 31, 2011 because of the material weakness described below. A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim consolidated financial statements will not be prevented or

67

detected on a timely basis. In our assessment of the effectiveness of internal control over financial reporting at December 31, 2011, we identified the following material weakness:

        We did not maintain adequate and effective internal control in the area of identifying and monitoring price reduction clauses in certain U.S. government customer contracts. In 2011, we discovered, in conjunction with a government contract renewal, as more fully discussed in Note 10.h. to Notes to Consolidated Financial Statements, that we did not have a control in place to appropriately identify and monitor price reduction clauses of certain U.S. government customer contracts. The material weakness contributed to management's conclusion that an immaterial restatement of our consolidated financial statements was appropriate, as more fully discussed in Note 2.y. to Notes to Consolidated Financial Statements. Total revenue under U.S. government contracts for the year ended December 31, 2011 was less than $75 million.

Remediation of Material Weakness in Internal Control over Financial Reporting

        To address the material weakness in our internal control over financial reporting described above, we performed additional analyses and other post-closing procedures designed to provide reasonable assurance that our consolidated financial statements were prepared in accordance with GAAP. As a result of these procedures, we believe that the consolidated financial statements included in this Annual Report on Form 10-K as of and for the year ended December 31, 2011 fairly present, in all material respects, our financial condition, results of operations and cash flow for the periods presented, in conformity with GAAP. We will continue to take appropriate and reasonable steps to make necessary improvements to our internal control over financial reporting including:

•

Hiring a government contract compliance specialist.

•

Developing and implementing a process to appropriately identify government contracts with price reduction clauses.

•

Developing and implementing procedures to track and monitor benchmark pricing and calculating any related price reductions under these contracts.

        We have begun our remediation efforts and we expect these efforts, which include design, implementation and testing, to continue throughout fiscal year 2012. We believe that the remediation measures described above will strengthen our internal control over financial reporting and remediate the material weakness we have identified. We are committed to continuing to improve our internal control processes and will continue to diligently review our financial controls and procedures.

        The effectiveness of our internal control over financial reporting has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report which is included in this Annual Report on Form 10-K.

68

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of Iron Mountain Incorporated

        We have audited the internal control over financial reporting of Iron Mountain Incorporated and subsidiaries (the "Company") as of December 31, 2011, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit.

        We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on that risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

        A company's internal control over financial reporting is a process designed by, or under the supervision of, the company's principal executive and principal financial officers, or persons performing similar functions, and effected by the company's board of directors, management, and other personnel 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. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

        Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

        A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of a company's annual or interim financial statements will not be prevented or detected on a timely basis. The following material weakness has been identified and included in management's assessment: the Company did not maintain adequate and effective internal control in the area of identifying and monitoring price reduction clauses in certain U.S. government customer contracts. This material weakness was considered in determining the nature, timing, and extent of audit tests applied in our audit of the Company's consolidated financial statements as of and for the year ended December 31, 2011 and this report does not affect our report on such financial statements.

69

        In our opinion, because of the effect of the material weakness identified above on the achievement of the objectives of the control criteria, the Company has not maintained effective internal control over financial reporting as of December 31, 2011, based on the criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.

        We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statements as of and for the year ended December 31, 2011 of the Company and our report dated February 28, 2012 expressed an unqualified opinion on those financial statements.

/s/ DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 28, 2012

70

Changes in Internal Control over Financial Reporting

        There have been no changes in our internal control over financial reporting during the quarter ended December 31, 2011 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Item 9B. Other Information.

        None.

71

PART III

Item 10. Directors, Executive Officers and Corporate Governance.

        The information required by Item 10 is incorporated by reference to our Proxy Statement.

Item 11. Executive Compensation.

        The information required by Item 11 is incorporated by reference to our Proxy Statement.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

        The information required by Item 12 is incorporated by reference to our Proxy Statement.

Item 13. Certain Relationships and Related Transactions, and Director Independence.

        The information required by Item 13 is incorporated by reference to our Proxy Statement.

Item 14. Principal Accountant Fees and Services.

        The information required by Item 14 is incorporated by reference to our Proxy Statement.

PART IV

Item 15. Exhibits and Financial Statement Schedules.

(a)

Financial Statements and Financial Statement Schedules filed as part of this report:

	Page
A. Iron Mountain Incorporated
Report of Independent Registered Public Accounting Firm	73
Consolidated Balance Sheets, December 31, 2010 and 2011	74
Consolidated Statements of Operations, Years Ended December 31, 2009, 2010 and 2011	75
Consolidated Statements of Comprehensive Income (Loss), Years Ended December 31, 2009, 2010 and 2011	76
Consolidated Statements of Equity, Years Ended December 31, 2009, 2010 and 2011	77
Consolidated Statements of Cash Flows, Years Ended December 31, 2009, 2010 and 2011	78
Notes to Consolidated Financial Statements	79

(b)

Exhibits filed as part of this report: As listed in the Exhibit Index following the signature page hereof.

72

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of Iron Mountain Incorporated

        We have audited the accompanying consolidated balance sheets of Iron Mountain Incorporated and subsidiaries (the "Company") as of December 31, 2011 and 2010, and the related consolidated statements of operations, comprehensive income (loss), equity and cash flows for each of the three years in the period ended December 31, 2011. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

        We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

        In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of Iron Mountain Incorporated and subsidiaries as of December 31, 2011 and 2010, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2011, in conformity with accounting principles generally accepted in the United States of America.

        We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Company's internal control over financial reporting as of December 31, 2011, based on the criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 28, 2012 expressed an adverse opinion on the Company's internal control over financial reporting because of a material weakness.

/s/ DELOITTE & TOUCHE LLP

Boston, Massachusetts
February 28, 2012

73

IRON MOUNTAIN INCORPORATED

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

	December 31,
	2010			2011
ASSETS
Current Assets:
Cash and cash equivalents	$	258,693		$	179,845
Restricted cash		35,105			35,110
Accounts receivable (less allowances of $20,747 and $23,277 as of December 31, 2010 and 2011, respectively)		524,326			543,467
Deferred income taxes		44,225			43,235
Prepaid expenses and other		136,905			105,537
Assets of discontinued operations		213,208			7,256
Total Current Assets		1,212,462			914,450
Property, Plant and Equipment:
Property, plant and equipment		4,161,410			4,232,594
Less—Accumulated depreciation		(1,693,166	)		(1,825,511	)
Property, Plant and Equipment, net		2,468,244			2,407,083
Other Assets, net:
Goodwill		2,279,561			2,254,268
Customer relationships and acquisition costs		379,808			410,149
Deferred financing costs		29,146			35,798
Other		27,686			19,510
Assets of discontinued operations		19,486			—
Total Other Assets, net		2,735,687			2,719,725
Total Assets	$	6,416,393		$	6,041,258
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of long-term debt	$	96,081		$	73,320
Accounts payable		143,765			156,381
Accrued expenses		382,670			418,831
Deferred revenue		190,713			197,181
Liabilities of discontinued operations		61,474			3,317
Total Current Liabilities		874,703			849,030
Long-term Debt, net of current portion		2,912,126			3,280,268
Other Long-term Liabilities		86,605			53,169
Deferred Rent		95,860			97,177
Deferred Income Taxes		492,464			507,358
Liabilities of discontinued operations		1,770			—
Commitments and Contingencies (see Note 10)
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 200,064,066 shares and 172,140,966 shares as of December 31, 2010 and 2011, respectively)		2,001			1,721
Additional paid-in capital		1,228,655			343,603
Retained earnings		685,310			902,567
Accumulated other comprehensive items, net		29,482			(2,203	)
Total Iron Mountain Incorporated Stockholders' Equity		1,945,448			1,245,688
Noncontrolling Interests		7,417			8,568
Total Equity		1,952,865			1,254,256
Total Liabilities and Equity	$	6,416,393		$	6,041,258

The accompanying notes are an integral part of these consolidated financial statements.

74

IRON MOUNTAIN INCORPORATED

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

	Year Ended December 31,
	2009			2010			2011
Revenues:
Storage	$	1,533,792		$	1,598,718		$	1,682,990
Service		1,240,592			1,293,631			1,331,713
Total Revenues		2,774,384			2,892,349			3,014,703
Operating Expenses:
Cost of sales (excluding depreciation and amortization)		1,201,871			1,192,862			1,245,200
Selling, general and administrative		749,934			772,811			834,591
Depreciation and amortization		277,186			304,205			319,499
Intangible Impairments		—			85,909			46,500
Loss (Gain) on disposal/write-down of property, plant and equipment, net		168			(10,987	)		(2,286	)
Total Operating Expenses		2,229,159			2,344,800			2,443,504
Operating Income (Loss)		545,225			547,549			571,199
Interest Expense, Net (includes Interest Income of $2,563, $1,785 and $2,313 in 2009, 2010 and 2011, respectively)		212,545			204,559			205,256
Other (Income) Expense, Net		(12,599	)		8,768			13,043
Income (Loss) from Continuing Operations
Before Provision (Benefit) for Income Taxes		345,279			334,222			352,900
Provision (Benefit) for Income Taxes		113,762			167,483			106,488
Income (Loss) from Continuing Operations		231,517			166,739			246,412
Income (Loss) from Discontinued Operations, Net of Tax		(12,138	)		(219,417	)		(47,439	)
Gain (Loss) on Sale of Discontinued Operations, Net of Tax		—			—			200,619
Net Income (Loss)		219,379			(52,678	)		399,592
Less: Net Income (Loss) Attributable to Noncontrolling Interests		1,429			4,908			4,054
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	217,950		$	(57,586	)	$	395,538
Earnings (Losses) per Share—Basic:
Income (Loss) from Continuing Operations	$	1.14		$	0.83		$	1.27
Total Income (Loss) from Discontinued Operations	$	(0.06	)	$	(1.09	)	$	0.79
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	1.07		$	(0.29	)	$	2.03
Earnings (Losses) per Share—Diluted:
Income (Loss) from Continuing Operations	$	1.13		$	0.83		$	1.26
Total Income (Loss) from Discontinued Operations	$	(0.06	)	$	(1.09	)	$	0.78
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	1.07		$	(0.29	)	$	2.02
Weighted Average Common Shares Outstanding—Basic		202,812			201,991			194,777
Weighted Average Common Shares Outstanding—Diluted		204,271			201,991			195,938
Dividends Declared per Common Share	$	—		$	0.3750		$	0.9375

The accompanying notes are an integral part of these consolidated financial statements.

75

IRON MOUNTAIN INCORPORATED

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

	Year Ended December 31,
	2009		2010			2011
Net Income (Loss)	$	219,379	$	(52,678	)	$	399,592
Other Comprehensive Income (Loss):
Foreign Currency Translation Adjustments		69,455		2,288			(32,616	)
Total Other Comprehensive Income (Loss)		69,455		2,288			(32,616	)
Comprehensive Income (Loss)		288,834		(50,390	)		366,976
Comprehensive Income (Loss) Attributable to Noncontrolling Interests		2,008		5,375			3,123
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$	286,826	$	(55,765	)	$	363,853

The accompanying notes are an integral part of these consolidated financial statements.

76

IRON MOUNTAIN INCORPORATED

CONSOLIDATED STATEMENTS OF EQUITY

(In thousands, except share data)

							Iron Mountain Incorporated Stockholders' Equity
							Common Stock Voting												Accumulated Other Comprehensive Items, Net
				Comprehensive Income (Loss)									Additional Paid-in Capital			Retained Earnings						Noncontrolling Interests
	Total						Shares			Amounts
Balance, December 31, 2008	$	1,814,769		$	—			201,931,332		$	2,019		$	1,250,064		$	600,353		$	(41,215	)	$	3,548
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation, including tax benefit of $5,532		48,609			—			1,615,425			16			48,593			—			—			—
Comprehensive Income (Loss):
Currency translation adjustment		69,455			69,455			—			—			—			—			68,876			579
Net income (loss)		219,379			219,379			—			—			—			217,950			—			1,429
Comprehensive Income (Loss)				$	288,834			—			—			—			—			—			—
Noncontrolling interests equity contributions		578						—			—			—			—			—			578
Noncontrolling interests dividends		(2,030	)					—			—			—			—			—			(2,030	)
Balance, December 31, 2009		2,150,760		$	—			203,546,757			2,035			1,298,657			818,303			27,661			4,104
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation, including tax benefit of $2,252		39,530			—			1,281,332			13			39,517			—			—			—
Stock options issued in connection with acquisition		1,997			—			—			—			1,997			—			—			—
Stock repurchases		(111,563	)		—			(4,764,023	)		(47	)		(111,516	)		—			—			—
Parent cash dividends declared		(75,407	)		—			—			—			—			(75,407	)		—			—
Comprehensive Income (Loss):
Currency translation adjustment		2,288			2,288			—			—			—			—			1,821			467
Net income (loss)		(52,678	)		(52,678	)		—			—			—			(57,586	)		—			4,908
Comprehensive Income (Loss)				$	(50,390	)		—			—			—			—			—			—
Noncontrolling interests dividends		(2,062	)					—			—			—			—			—			(2,062	)
Balance, December 31, 2010		1,952,865		$	—			200,064,066			2,001			1,228,655			685,310			29,482			7,417
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation, including tax benefit of $919		102,986			—			3,930,318			39			102,947			—			—			—
Stock repurchases		(988,318	)		—			(31,853,418	)		(319	)		(987,999	)		—			—			—
Parent cash dividends declared		(178,281	)		—			—			—			—			(178,281	)		—			—
Comprehensive Income (Loss):
Currency translation adjustment		(32,616	)		(32,616	)		—			—			—			—			(31,685	)		(931	)
Net income (loss)		399,592			399,592			—			—			—			395,538			—			4,054
Comprehensive Income (Loss)				$	366,976			—			—			—			—			—			—
Noncontrolling interests equity contributions		215						—			—			—			—			—			215
Noncontrolling interests dividends		(2,187	)					—			—			—			—			—			(2,187	)
Balance, December 31, 2011	$	1,254,256						172,140,966		$	1,721		$	343,603		$	902,567		$	(2,203	)	$	8,568

The accompanying notes are an integral part of these consolidated financial statements.

77

IRON MOUNTAIN INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

	Year Ended December 31,
	2009			2010			2011
Cash Flows from Operating Activities:
Net income (loss)	$	219,379		$	(52,678	)	$	399,592
Loss (Income) from discontinued operations		12,138			219,417			47,439
(Gain) Loss on sale of discontinued operations		—			—			(200,619	)
Adjustments to reconcile net income (loss) to cash flows from operating activities:
Depreciation		253,061			278,760			290,638
Amortization (includes deferred financing costs and bond discount of $5,117, $5,357 and $6,318 in 2009, 2010 and 2011, respectively)		29,242			30,802			35,179
Intangible impairments		—			85,909			46,500
Stock-based compensation expense		15,210			17,274			17,250
Provision for deferred income taxes		30,335			37,666			3,389
Loss (Gain) on early extinguishment of debt		3,031			1,792			993
Loss (Gain) on disposal/write-down of property, plant and equipment, net		168			(10,987	)		(2,286	)
Foreign currency transactions and other, net		(12,690	)		18,043			24,298
Changes in Assets and Liabilities (exclusive of acquisitions):
Accounts receivable		(14,897	)		11,793			(20,799	)
Prepaid expenses and other current assets		(22,052	)		(8,811	)		5,299
Accounts payable		10,180			(547	)		7,069
Accrued expenses, deferred revenue and other current liabilities		45,200			(38,072	)		15,629
Other assets and long-term liabilities		18,265			12,868			(6,057	)
Cash Flows from Operating Activities—Continuing Operations		586,570			603,229			663,514
Cash Flows from Operating Activities—Discontinued Operations		30,341			21,911			(48,076	)
Cash Flows from Operating Activities		616,911			625,140			615,438
Cash Flows from Investing Activities:
Capital expenditures		(287,917	)		(258,849	)		(209,155	)
Cash paid for acquisitions, net of cash acquired		(1,518	)		(13,841	)		(75,246	)
Investment in restricted cash		—			(35,102	)		(5	)
Additions to customer relationship and acquisition costs		(10,741	)		(13,202	)		(21,703	)
Investment in joint ventures		(3,114	)		—			(335	)
Proceeds from sales of property and equipment and other, net		4,591			22,536			4,231
Cash Flows from Investing Activities—Continuing Operations		(298,699	)		(298,458	)		(302,213	)
Cash Flows from Investing Activities—Discontinued Operations		(25,367	)		(134,212	)		380,721
Cash Flows from Investing Activities		(324,066	)		(432,670	)		78,508
Cash Flows from Financing Activities:
Repayment of revolving credit and term loan facilities and other debt		(283,318	)		(101,884	)		(2,017,174	)
Proceeds from revolving credit and term loan facilities and other debt		33,944			53,567			2,170,979
Early retirement of senior subordinated notes		(447,874	)		(202,584	)		(231,255	)
Net proceeds from sales of senior subordinated notes		539,688			—			394,000
Debt financing (repayment to) and equity contribution from (distribution to) noncontrolling interests, net		1,064			169			698
Stock repurchases		—			(111,563	)		(984,953	)
Parent cash dividends		—			(37,893	)		(172,616	)
Proceeds from exercise of stock options and employee stock purchase plan		24,233			18,225			85,742
Excess tax benefits from stock-based compensation		5,532			2,252			919
Payment of debt financing costs		(1,555	)		—			(9,010	)
Cash Flows from Financing Activities—Continuing Operations		(128,286	)		(379,711	)		(762,670	)
Cash Flows from Financing Activities—Discontinued Operations		(1,406	)		(1,523	)		(1,138	)
Cash Flows from Financing Activities		(129,692	)		(381,234	)		(763,808	)
Effect of Exchange Rates on Cash and Cash Equivalents		5,133			801			(8,986	)
Increase (Decrease) in Cash and Cash Equivalents		168,286			(187,963	)		(78,848	)
Cash and Cash Equivalents, Beginning of Period		278,370			446,656			258,693
Cash and Cash Equivalents, End of Period	$	446,656		$	258,693		$	179,845
Supplemental Information:
Cash Paid for Interest	$	216,673		$	226,463		$	203,035
Cash Paid for Income Taxes	$	87,062		$	139,072		$	147,998
Non-Cash Investing and Financing Activities:
Capital Leases	$	72,120		$	30,367		$	30,090
Accrued Capital Expenditures	$	53,701		$	41,222		$	43,696
Dividends Payable	$	—		$	37,514		$	43,180
Unsettled Purchases of Parent Common Stock	$	—		$	—		$	3,364

The accompanying notes are an integral part of these consolidated financial statements.

78

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2011
(In thousands, except share and per share data)

1. Nature of Business

        The accompanying financial statements represent the consolidated accounts of Iron Mountain Incorporated, a Delaware corporation ("IMI"), and its subsidiaries. We are a global full-service provider of information management and related services for all media in various locations throughout North America, Europe, Latin America and Asia Pacific. We have a diversified customer base comprised of commercial, legal, banking, health care, accounting, insurance, entertainment and government organizations.

        In August 2010, IMI divested the domain name management product line of our digital business (the "Domain Name Product Line"). On June 2, 2011, IMI completed the sale (the "Digital Sale") of our online backup and recovery, digital archiving and eDiscovery solutions businesses of our digital business (the "Digital Business") to Autonomy Corporation plc, a corporation formed under the laws of England and Wales ("Autonomy"), pursuant to a purchase and sale agreement dated as of May 15, 2011 among IMI, certain subsidiaries of IMI and Autonomy (the "Digital Sale Agreement"). The financial position, operating results and cash flows of the Domain Name Product Line and the Digital Business, for all periods presented, including the gains on the sales, have been reported as discontinued operations for financial reporting purposes. Additionally, on October 3, 2011, we sold our records management business in New Zealand (the "New Zealand Business"), and in December 2011, we committed to a plan to sell our records management business in Italy (the "Italian Business"). The financial position, operating results and cash flows of the New Zealand and Italian Businesses, including the gain on the sale of the New Zealand Business, for all periods presented, have been reported as discontinued operations for financial reporting purposes. See Note 14 for a further discussion of these events.

2. Summary of Significant Accounting Policies

a.

Principles of Consolidation and Change in Accounting Principle

        The accompanying financial statements reflect our financial position, results of operations and cash flows on a consolidated basis. Prior to January 1, 2010, the financial position and results of operations of the operating subsidiaries of Iron Mountain Europe (Group) Limited (collectively referred to as "IME"), our European business, were consolidated based on IME's fiscal year ended October 31. Effective January 1, 2010, we changed the fiscal year-end (and the reporting period for consolidation purposes) of IME to coincide with IMI's fiscal year-end of December 31. We believe that the change in accounting principle related to the elimination of the two-month reporting lag for IME is preferable because it results in more contemporaneous reporting of events and results related to IME. In accordance with applicable accounting literature, a change in subsidiary year-end is treated as a change in accounting principle and requires retrospective application. The impact of the change was not material to the results of operations for the previously reported annual and interim periods prior to January 1, 2010, and, thus, those results have not been revised. There is, however, a charge of $4,711 recorded to other expense (income), net in the year ended December 31, 2010 to recognize the immaterial difference arising from the change. Had the annual financial statements been revised, operating income (loss), income (loss) from continuing operations before provision (benefit) for income taxes and net income (loss) attributable to Iron Mountain Incorporated in calendar 2009 would have been increased by $3,714, $7,041 and $4,957, respectively. In addition, revenue, operating income (loss),

79

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

2. Summary of Significant Accounting Policies (Continued)

income (loss) from continuing operations before provision (benefit) for income taxes and net income (loss) attributable to Iron Mountain Incorporated for the year ended December 31, 2010 would not have changed materially had we not eliminated the two-month reporting lag. There were no significant, infrequent or unusual items in the IME two-month period ended December 31, 2009. All intercompany account balances have been eliminated.

b.

Use of Estimates

        The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires us to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities at the date of the financial statements and for the period then ended. On an ongoing basis, we evaluate the estimates used. We base our estimates on historical experience, actuarial estimates, current conditions and various other assumptions that we believe to be reasonable under the circumstances. These estimates form the basis for making judgments about the carrying values of assets and liabilities and are not readily apparent from other sources. Actual results may differ from these estimates.

c.

Cash, Cash Equivalents and Restricted Cash

        Cash and cash equivalents include cash on hand and cash invested in 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 have restricted cash associated with a collateral trust agreement with our insurance carrier that was entered into in 2010 related to our worker's compensation self-insurance program. The restricted cash subject to this agreement was $35,105 and $35,110 as of December 31, 2010 and 2011, respectively, and is included in current assets on our consolidated balance sheets. Restricted cash consists primarily of U.S. Treasuries.

d.

Foreign Currency

        Local currencies are considered the functional currencies for our operations outside the U.S., with the exception of certain foreign holding companies and our financing center in Switzerland, whose functional currencies are the U.S. dollar. In those instances where the local currency is the functional currency, assets and liabilities are translated at period-end exchange rates, and revenues and expenses are translated at average exchange rates for the applicable period. Resulting translation adjustments are reflected in the accumulated other comprehensive items, net component of Iron Mountain Incorporated Stockholders' Equity and Noncontrolling Interests. 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, including those related to (a) our 7¹/4% GBP Senior Subordinated Notes due 2014, (b) our 6³/4% Euro Senior Subordinated Notes due 2018, (c) the borrowings in certain foreign currencies under our revolving credit agreement, and (d) certain foreign currency denominated intercompany obligations of our foreign subsidiaries to us and between our foreign subsidiaries, which are not considered permanently invested, are included in other expense (income), net, on our consolidated statements of operations. The total gain or loss on foreign currency transactions amounted

80

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

2. Summary of Significant Accounting Policies (Continued)

to a net gain of $12,845, a net loss of $5,664 and a net loss of $17,352 for the years ended December 31, 2009, 2010 and 2011, respectively.

e.

Derivative Instruments and Hedging Activities

        Every derivative instrument is required to be recorded in the balance sheet as either an asset or a liability measured at its fair value. Periodically, we acquire derivative instruments that are intended to hedge either cash flows or values which are subject to foreign exchange or other market price risk and not for trading purposes. We have formally documented our hedging relationships, including identification of the hedging instruments and the hedged items, as well as our risk management objectives and strategies for undertaking each hedge transaction. Given the recurring nature of our revenues and the long-term nature of our asset base, we have the ability and the preference to use long-term, fixed interest rate debt to finance our business, thereby preserving our long-term returns on invested capital. We target approximately 75% of our debt portfolio to be fixed with respect to interest rates. Occasionally, we may use interest rate swaps as a tool to maintain our targeted level of fixed rate debt. In addition, we may use borrowings in foreign currencies, either obtained in the U.S. or by our foreign subsidiaries, to hedge foreign currency risk associated with our international investments. Sometimes we enter into currency swaps to temporarily hedge an overseas investment, such as a major acquisition, while we arrange permanent financing or to hedge our exposure due to foreign currency exchange movements related to our intercompany accounts with and between our foreign subsidiaries. As of December 31, 2010 and 2011, none of our derivative instruments contained credit-risk related contingent features.

f.

Property, Plant and Equipment

        Property, plant and equipment are stated at cost and depreciated using the straight-line method with the following useful lives:

Building and building improvements	5 to 40 years
Leasehold improvements	10 years or the life of the lease, whichever is shorter
Racking	2 to 20 years
Warehouse equipment	3 to 10 years
Vehicles	2 to 10 years
Furniture and fixtures	2 to 10 years
Computer hardware and software	3 to 5 years

81

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

2. Summary of Significant Accounting Policies (Continued)

        Property, plant and equipment (including capital leases in the respective category), at cost, consist of the following:

	December 31,
	2010		2011
Land	$	170,576	$	172,454
Buildings and building improvements		1,064,478		1,109,176
Leasehold improvements		469,324		474,965
Racking		1,368,218		1,420,180
Warehouse equipment/vehicles		362,663		355,951
Furniture and fixtures		76,971		79,193
Computer hardware and software		548,453		527,585
Construction in progress		100,727		93,090
	$	4,161,410	$	4,232,594

        Minor maintenance costs are expensed as incurred. Major improvements which extend the life, increase the capacity or improve the safety or the efficiency of property owned are capitalized. Major improvements to leased buildings are capitalized as leasehold improvements and depreciated.

        We develop various software applications for internal use. Computer software costs associated with internal use software are expensed as incurred until certain capitalization criteria are met. Payroll and related costs for employees who are directly associated with, and who devote time to, the development of internal use computer software projects (to the extent time is spent directly on the project) are capitalized and depreciated over the estimated useful life of the software. Capitalization begins when the design stage of the application has been completed and it is probable that the application will be completed and used to perform the function intended. Depreciation begins when the software is placed in service. Computer software costs that are capitalized are periodically evaluated for impairment. During the years ended December 31, 2009 and 2011, we wrote-off $600 (primarily in Corporate) and $3,500 (approximately $3,050 associated with our International Business segment and approximately $450 associated with our North American Business segment), respectively, of previously deferred software costs associated with internal use software development projects that were discontinued after implementation, which resulted in a loss on disposal/write-down of property, plant and equipment, net in the accompanying consolidated statement of operations.

        Entities are required to record the fair value of a liability for an asset retirement obligation in the period in which it is incurred. Asset retirement obligations represent the costs to replace or remove tangible long-lived assets required by law, regulatory rule or contractual agreement. When the liability is initially recorded, the entity capitalizes the cost by increasing the carrying amount of the related long-lived asset, which is then depreciated over the useful life of the related asset. The liability is increased over time through income such that the liability will equate to the future cost to retire the long-lived asset at the expected retirement date. Upon settlement of the liability, an entity either settles the obligation for its recorded amount or realizes a gain or loss upon settlement. Our obligations are primarily the result of requirements under our facility lease agreements which generally have "return to

82

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

2. Summary of Significant Accounting Policies (Continued)

original condition" clauses which would require us to remove or restore items such as shred pits, vaults, demising walls and office build-outs, among others. The significant assumptions used in estimating our aggregate asset retirement obligation are the timing of removals, the probability of a requirement to perform, estimated cost and associated expected inflation rates that are consistent with historical rates and credit-adjusted risk-free rates that approximate our incremental borrowing rate.

        A reconciliation of liabilities for asset retirement obligations (included in other long-term liabilities) is as follows:

	December 31,
	2010			2011
Asset Retirement Obligations, beginning of the year	$	10,734		$	9,465
Liabilities Incurred		531			300
Liabilities Settled		(70	)		(774	)
Accretion Expense		1,254			1,327
Change in Probability Adjustment		(2,745	)		(176	)
Foreign Currency Exchange Movement		(239	)		(26	)
Asset Retirement Obligations, end of the year	$	9,465		$	10,116

g.

Goodwill and Other Intangible Assets

        Goodwill and intangible assets with indefinite lives are not amortized but are reviewed annually for impairment or more frequently if impairment indicators arise. Other than goodwill, we currently have no intangible assets that have indefinite lives and which are not amortized. Separable intangible assets that are not deemed to have indefinite lives are amortized over their useful lives. We periodically assess whether events or circumstances warrant a change in the life over which our intangible assets are amortized.

        We have selected October 1 as our annual goodwill impairment review date. We performed our annual goodwill impairment review as of October 1, 2009, 2010 and 2011 and noted no impairment of goodwill. However, as a result of interim triggering events as discussed below, we recorded provisional goodwill impairment charges in each of the third quarters of 2010 and 2011 in conjunction with the Digital Sale and associated with our Western European operations, respectively. These provisional goodwill impairment charges were finalized in the fourth quarters of the 2010 and 2011 fiscal years, respectively. As of December 31, 2011, no factors were identified that would alter our October 1, 2011 goodwill assessment. In making this assessment, we relied on a number of factors including operating results, business plans, anticipated future cash flows, transactions and marketplace data. There are inherent uncertainties related to these factors and our judgment in applying them to the analysis of goodwill impairment. When changes occur in the composition of one or more reporting units, the goodwill is reassigned to the reporting units affected based on their relative fair values.

        As discussed at Note 14, we recorded a goodwill impairment charge in 2010 associated with our former worldwide digital business reporting unit. For the year ended December 31, 2010, we allocated $85,909 of this charge to the technology escrow services business based on a relative fair value basis.

83

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

2. Summary of Significant Accounting Policies (Continued)

This charge continues to be included in our continuing results of operations as a component of intangible impairments in our consolidated statements of operations as we retained this business following the Digital Sale. Our technology escrow services business had previously been reported in the former worldwide digital business segment and is now reported in the North American Business segment.

        In September 2011, as a result of certain changes we made in the manner in which our European operations are managed, we reorganized our reporting structure and reassigned goodwill among the revised reporting units. Previously, we tested goodwill impairment at the European level on a combined basis. As a result of the management and reporting changes, we concluded that we have three reporting units for our European operations: (1) the United Kingdom, Ireland and Norway ("UKI"); (2) Belgium, France, Germany, Luxembourg, Netherlands and Spain ("Western Europe"); and (3) the remaining countries in Europe ("Central Europe"). Due to these changes, we will perform all future goodwill impairment analysis on the new reporting unit basis. As a result of the restructuring of our reporting units, we concluded that we had an interim triggering event, and, therefore, we performed an interim goodwill impairment test for UKI, Western Europe and Central Europe in the third quarter of 2011 as of August 31, 2011. As required by GAAP, prior to our goodwill impairment analysis, we performed an impairment assessment on the long-lived assets within our UKI, Western Europe and Central Europe reporting units and noted no impairment, except for the Italian Business, which was included in our Western Europe reporting unit, and which is now included in discontinued operations as discussed in Note 14. Based on our analyses, we concluded that the goodwill of our UKI and Central Europe reporting units was not impaired. Our UKI and Central Europe reporting units had fair values that exceed their carrying values by 15.1% and 4.9%, respectively, as of August 31, 2011. Central Europe is still in the investment stage and accordingly its fair value does not exceed its carrying value by a significant margin at this point in time. A deterioration of the UKI or Central Europe businesses or their failure to achieve the forecasted results could lead to impairments in future periods. Our Western Europe reporting unit's fair value was less than its carrying value, and, as a result, we recorded a goodwill impairment charge of $46,500 included as a component of intangible impairments from continuing operations in our consolidated statements of operations for the year ended December 31, 2011. A tax benefit of approximately $5,449 was recorded associated with the Western Europe goodwill impairment charge for the year ended December 31, 2011 and is included in the provision (benefit) for income taxes from continuing operations in the accompanying consolidated statement of operations. See Note 14 for the portion of the charge allocated to the Italian Business based on a relative fair value basis.

        Our reporting units at which level we performed our goodwill impairment analysis as of October 1, 2010 were as follows: North America; Europe; Latin America; Australia; Joint Ventures (which includes India, the various joint ventures in Southeast Asia and Russia (referred to as "Joint Ventures")); and Business Process Management ("BPM"). Given their similar economic characteristics, products, customers and processes, (1) the United Kingdom, Ireland and Norway and (2) the countries of Continental Europe (excluding Joint Ventures), each a reporting unit, have been aggregated as Europe and tested as one for goodwill impairment. As of December 31, 2010, the carrying value of goodwill, net amounted to $1,750,420, $438,344, $29,787 and $61,010 for North America, Europe, Latin America and Australia, respectively. Our Joint Ventures and BPM reporting units had no goodwill as of

84

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

2. Summary of Significant Accounting Policies (Continued)

December 31, 2010. Our reporting units at which level we performed our goodwill impairment analysis as of October 1, 2011 were as follows: North America; UKI; Western Europe; Central Europe; Latin America; Australia; and Joint Ventures. As of December 31, 2011, the carrying value of goodwill, net amounted to $1,748,879, $306,150, $46,439, $63,781, $27,322, and $61,697 for North America, UKI, Western Europe, Central Europe, Latin America and Australia, respectively. Our Joint Ventures reporting unit has no goodwill as of December 31, 2011. Our North America, Latin America and Australia reporting units had estimated fair values as of October 1, 2011 that exceeded their carrying values by greater than 40%.

        Reporting unit valuations have been calculated using an income approach based on the present value of future cash flows of each reporting unit or a combined approach based on the present value of future cash flows and market and transaction multiples of revenues and earnings. The income approach incorporates many assumptions including future growth rates, discount factors, expected capital expenditures and income tax cash flows. Changes in economic and operating conditions impacting these assumptions could result in goodwill impairments in future periods. In conjunction with our annual goodwill impairment reviews, we reconcile the sum of the valuations of all of our reporting units to our market capitalization as of such dates.

85

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

2. Summary of Significant Accounting Policies (Continued)

        The changes in the carrying value of goodwill attributable to each reportable operating segment for the years ended December 31, 2010 and 2011 is as follows:

	North American Business			International Physical Business			Total Consolidated
Gross Balance as of December 31, 2009	$	1,996,959		$	565,717		$	2,562,676
Non-deductible goodwill acquired during the year		1,700			4,030			5,730
Adjustments to purchase reserves		(401	)		—			(401	)
Fair value and other adjustments(1)		2,553			164			2,717
Currency effects		11,238			(27,532	)		(16,294	)
Gross Balance as of December 31, 2010		2,012,049			542,379			2,554,428
Deductible goodwill acquired during the year		1,398			—			1,398
Non-deductible goodwill acquired during the year		—			35,207			35,207
Fair value and other adjustments(2)		2,161			(865	)		1,296
Currency effects		(5,367	)		(12,677	)		(18,044	)
Gross Balance as of December 31, 2011	$	2,010,241		$	564,044		$	2,574,285
Accumulated Amortization Balance as of December 31, 2009	$	175,158		$	14,199		$	189,357
Goodwill impairment		85,909			—			85,909
Currency effects		562			(961	)		(399	)
Accumulated Amortization Balance as of December 31, 2010		261,629			13,238			274,867
Goodwill impairment		—			46,500			46,500
Currency effects		(267	)		(1,083	)		(1,350	)
Accumulated Amortization Balance as of December 31, 2011	$	261,362		$	58,655		$	320,017
Net Balance as of December 31, 2009	$	1,821,801		$	551,518		$	2,373,319
Net Balance as of December 31, 2010	$	1,750,420		$	529,141		$	2,279,561
Net Balance as of December 31, 2011	$	1,748,879		$	505,389		$	2,254,268
Accumulated Goodwill Impairment Balance as of December 31, 2010	$	85,909		$	—		$	85,909
Accumulated Goodwill Impairment Balance as of December 31, 2011	$	85,909		$	46,500		$	132,409

(1)

Fair value and other adjustments primarily include $(711) of adjustments to property, plant and equipment, net, customer relationships and deferred income taxes, as well as $1,428 of cash paid related to prior year's acquisitions and $2,000 of contingent earn-out obligations accrued and unpaid as of December 31, 2010 related to a 2007 acquisition.

(2)

Fair value and other adjustments primarily include $(835) of adjustments to property, plant and equipment, net, customer relationships and deferred income taxes, as well as $131 of cash paid related to prior year's acquisitions and $2,000 of contingent earn-out obligations accrued and unpaid as of December 31, 2011 related to a 2007 acquisition.

86

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

2. Summary of Significant Accounting Policies (Continued)

h.

Long-Lived Assets

        We review long-lived assets and all amortizable intangible assets for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable. Recoverability of these assets is determined by comparing the forecasted undiscounted net cash flows of the operation to which the assets relate to their carrying amount. The operations are generally distinguished by the business segment and geographic region in which they operate. If the operation is determined to be unable to recover the carrying amount of its assets, then intangible assets are written down first, followed by the other long-lived assets of the operation, to fair value. Fair value is determined based on discounted cash flows or appraised values, depending upon the nature of the assets.

        Consolidated loss on disposal/write-down of property, plant and equipment, net of $168 in the year ended December 31, 2009 consisted primarily of a gain on disposal of a building in our International Business segment of approximately $1,900 in France, offset by losses on the write-down of certain facilities of approximately $1,000 in our North American Business segment, $700 in our International Business segment and $300 in Corporate (associated with discontinued products after implementation). Consolidated gain on disposal/write-down of property, plant and equipment, net of $10,987 in the year ended December 31, 2010 consisted primarily of a gain of approximately $10,200 as a result of the settlement with our insurers in connection with a portion of the property component of our claim related to the Chilean earthquake in the third and fourth quarter of 2010, gains of approximately $3,200 in North America primarily related to the disposition of certain owned equipment and a gain on disposal of a building in our International Business segment of approximately $1,300 in the United Kingdom, offset by approximately $1,000 of asset write-downs associated with our Latin American operations and approximately $2,600 of impairment losses primarily related to certain owned facilities in North America. Consolidated gain on disposal/write-down of property, plant and equipment, net of $2,286 in the year ended December 31, 2011 consisted primarily of a gain of approximately $3,200 related to the disposition of a facility in Canada and a gain of approximately $3,000 on the retirement of leased vehicles accounted for as capital lease assets associated with our North American Business segment, offset by a loss associated with discontinued use of certain third-party software licenses of approximately $3,500 (approximately $3,050 associated with our International Business segment and approximately $450 associated with our North American Business segment).

i.

Customer Relationships and Acquisition Costs and Other Intangible Assets

        Costs related to the acquisition of large volume accounts are capitalized. Initial costs incurred to transport the boxes to one of our facilities, which includes labor and transportation charges, are amortized over periods ranging from one to 30 years (weighted average of 25 years at December 31, 2011), and are included in depreciation and amortization in the accompanying consolidated statements of operations. Payments to a customer's current records management vendor or direct payments to a customer are amortized over periods ranging from one to 10 years (weighted average of four years at December 31, 2011) to the storage and service revenue line items in the accompanying consolidated statements of operations. If the customer terminates its relationship with us, the unamortized cost is charged to expense or revenue. However, in the event of such termination, we generally collect, and record as income, permanent removal fees that generally equal or exceed the amount of the

87

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

2. Summary of Significant Accounting Policies (Continued)

unamortized costs. Customer relationship intangible assets acquired through business combinations, which represents the majority of the balance, are amortized over periods ranging from 10 to 30 years (weighted average of 19 years at December 31, 2011). Amounts allocated in purchase accounting to customer relationship intangible assets are calculated based upon estimates of their fair value utilizing an income approach based on the present value of future cash flows. Other intangible assets, including noncompetition agreements, acquired core technology and trademarks, are capitalized and amortized over periods ranging from two to 10 years (weighted average of seven years at December 31, 2011).

        The gross carrying amount and accumulated amortization are as follows:

	December 31,
Gross Carrying Amount	2010		2011
Customer relationship and acquisition costs	$	533,223	$	593,901
Other intangible assets (included in other assets, net)		7,014		6,761
Accumulated Amortization
Customer relationship and acquisition costs	$	153,415	$	183,752
Other intangible assets (included in other assets, net)		4,348		4,899

        The amortization expense for the years ended December 31, 2009, 2010 and 2011 are as follows:

	Year Ended December 31,
	2009		2010		2011
Customer relationship and acquisition costs:
Amortization expense included in depreciation and amortization	$	23,104	$	24,435	$	27,900
Amortization expense charged to revenues		8,096		9,710		10,100
Other intangible assets:
Amortization expense included in depreciation and amortization		1,021		1,010		961

        Estimated amortization expense for existing intangible assets (excluding deferred financing costs, which are amortized through interest expense, of $5,969, $5,969, $5,512, $5,322 and $3,978 for 2012, 2013, 2014, 2015 and 2016, respectively) for the next five succeeding fiscal years is as follows:

	Estimated Amortization
	Included in Depreciation and Amortization		Charged to Revenues
2012	$	30,505	$	6,279
2013		29,618		4,149
2014		29,077		2,601
2015		28,758		1,187
2016		28,461		440

88

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

2. Summary of Significant Accounting Policies (Continued)

j.

Deferred Financing Costs

        Deferred financing costs are amortized over the life of the related debt using the effective interest rate method. If debt is retired early, the related unamortized deferred financing costs are written off in the period the debt is retired to other expense (income), net. As of December 31, 2010 and 2011, gross carrying amount of deferred financing costs was $50,242 and $54,826, respectively, and accumulated amortization of those costs was $21,096 and $19,028, respectively, and was recorded in other assets, net in the accompanying consolidated balance sheet.

k.

Accrued Expenses

        Accrued expenses (with items greater than 5% of total current liabilities shown separately) consist of the following:

	December 31,
	2010		2011
Interest	$	59,774	$	59,268
Payroll and vacation		76,979		75,384
Incentive compensation		26,285		62,550
Self-insured liabilities (Note 10.b.)		43,901		39,358
Income taxes		29,484		4,957
Other		146,247		177,314
	$	382,670	$	418,831

l.

Revenues

        Our revenues consist of storage revenues as well as service revenues and are reflected net of sales and value added taxes. Storage revenues, which are considered a key performance indicator for the information management services industry, consist primarily of recurring periodic charges related to the storage of materials or data (generally on a per unit basis). Service revenues are comprised of charges for related core service activities and a wide array of complementary products and services. Included in core service revenues are: (1) the handling of records, including the addition of new records, temporary removal of records from storage, refiling of removed records and the destruction of records; (2) courier operations, consisting primarily of the pickup and delivery of records upon customer request; (3) secure shredding of sensitive documents; and (4) other recurring services, including hybrid services and recurring project revenues. Our complementary services revenues include special project work, customer termination and permanent withdrawal fees, data restoration projects, fulfillment services, consulting services, technology services and product sales (including specially designed storage containers and related supplies). Our secure shredding revenues include the sale of recycled paper (included in complementary services revenues), the price of which can fluctuate from period to period, adding to the volatility and reducing the predictability of that revenue stream.

        We recognize revenue when the following criteria are met: persuasive evidence of an arrangement exists, services have been rendered, the sales price is fixed or determinable and collectability of the resulting receivable is reasonably assured. Storage and service revenues are recognized in the month

89

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

2. Summary of Significant Accounting Policies (Continued)

the respective storage or service is provided, and customers are generally billed on a monthly basis on contractually agreed-upon terms. Amounts related to future storage or prepaid service contracts for customers where storage fees or services are billed in advance are accounted for as deferred revenue and recognized ratably over the applicable storage or service period or when the service is performed. Revenue from the sales of products, which is included as a component of service revenues, is recognized when products are shipped to the customer and title has passed to the customer. Revenues from the sales of products have historically not been significant.

m.

Rent Normalization

        We have entered into various leases for buildings that expire over various terms. Certain leases have fixed escalation clauses (excluding those tied to the consumer price index or other inflation-based indices) or other features (including return to original condition, primarily in the United Kingdom) which require normalization of the rental expense over the life of the lease resulting in deferred rent being reflected in the accompanying consolidated balance sheets. In addition, we have assumed various above and below market leases in connection with certain of our acquisitions. The difference between the present value of these lease obligations and the market rate at the date of the acquisition was recorded as a deferred rent liability or other long-term asset and is being amortized over the remaining lives of the respective leases.

n.

Stock-Based Compensation

        We record stock-based compensation expense, utilizing the straight-line method, for the cost of stock options, restricted stock, restricted stock units, performance units and shares of stock issued under the employee stock purchase plan (together, "Employee Stock-Based Awards").

        Stock-based compensation expense for Employee Stock-Based Awards included in the accompanying consolidated statements of operations for the years ended December 31, 2009, 2010 and 2011 was $18,703, including $3,493 in discontinued operations, ($14,716 after tax or $0.07 per basic and diluted share), $20,378, including $3,104 in discontinued operations, ($15,672 after tax or $0.08 per basic and diluted share) and $17,510, including $260 in discontinued operations, ($8,834 after tax or $0.05 per basic and diluted share), respectively.

        Stock-based compensation expense for Employee Stock-Based Awards included in the accompanying consolidated statements of operations related to continuing operations is as follows:

	Year Ended December 31,
	2009		2010		2011
Cost of sales (excluding depreciation and amortization)	$	248	$	730	$	914
Selling, general and administrative expenses		14,962		16,544		16,336
Total stock-based compensation	$	15,210	$	17,274	$	17,250

        The benefits associated with the tax deductions in excess of recognized compensation cost are required to be reported as a financing cash flow. This requirement reduces reported operating cash flows and increases reported financing cash flows. As a result, net financing cash flows from continuing

90

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

2. Summary of Significant Accounting Policies (Continued)

operations included $5,532, $2,252 and $919 for the years ended December 31, 2009, 2010 and 2011, respectively, from the benefits of tax deductions in excess of recognized compensation cost. The tax benefit of any resulting excess tax deduction increases the Additional Paid-in Capital ("APIC") pool. Any resulting tax deficiency is deducted from the APIC pool.

Stock Options

        Under our various stock option plans, options were granted with exercise prices equal to the market price of the stock on the date of grant. The majority of our options become exercisable ratably over a period of five years and generally have a contractual life of ten years, unless the holder's employment is sooner terminated. Certain of the options we issue become exercisable ratably over a period of ten years and have a contractual life of 12 years, unless the holder's employment is sooner terminated. As of December 31, 2011, ten-year vesting options represented 7.3% of total outstanding options. Beginning in 2011, certain of the options we issue become exercisable ratably over a period of three years and have a contractual life of ten years, unless the holder's employment is sooner terminated. As of December 31, 2011, three-year vesting options represented 11.0% of total outstanding options. Our non-employee directors are considered employees for purposes of our stock option plans and stock option reporting. Options granted to our non-employee directors generally become exercisable after one year.

        In December 2008, we amended each of the Iron Mountain Incorporated 2002 Stock Incentive Plan, the Iron Mountain Incorporated 1997 Stock Option Plan, the LiveVault Corporation 2001 Stock Incentive Plan and the Stratify, Inc. 1999 Stock Plan (each a "Plan" and, collectively, the "Plans") to provide that any unvested options and other awards granted under each respective Plan shall vest immediately should an employee be terminated by the Company, or terminate his or her own employment for good reason (as defined in each Plan), in connection with a vesting change in control (as defined in each Plan). The Mimosa Systems, Inc. 2009 Equity Incentive Plan and the Mimosa Systems, Inc. 2003 Stock Plan were similarly amended in June 2010.

        A total of 37,536,442 shares of common stock have been reserved for grants of options and other rights under our various stock incentive plans. The number of shares available for grant at December 31, 2011 was 7,112,835.

        The weighted average fair value of options granted in 2009, 2010 and 2011 was $9.72, $7.71 and $7.42 per share, respectively. These values were estimated on the date of grant using the Black-Scholes option pricing model. The following table summarizes the weighted average assumptions used for grants in the year ended December 31:

Weighted Average Assumptions	2009		2010		2011
Expected volatility		32.1%		32.8%		33.4%
Risk-free interest rate		2.64%		2.48%		2.40%
Expected dividend yield		None		1.2%		3%
Expected life		6.4 Years		6.4 Years		6.3 Years

91

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

2. Summary of Significant Accounting Policies (Continued)

        Expected volatility is calculated utilizing daily historical volatility over a period that equates to the expected life of the option. The risk-free interest rate was based on the U.S. Treasury interest rates whose term is consistent with the expected life of the stock options. Beginning in the first quarter of 2010, expected dividend yield was considered in the option pricing model as a result of our new dividend program. The expected life (estimated period of time outstanding) of the stock options granted is estimated using the historical exercise behavior of employees.

        A summary of option activity for the year ended December 31, 2011 is as follows:

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 31, 2010		12,140,560		$	24.30
Granted		1,077,648			28.60
Exercised		(3,753,905	)		21.78
Forfeited		(2,226,605	)		25.90
Expired		(119,240	)		27.72
Outstanding at December 31, 2011		7,118,458		$	25.73		6.72	$	38,002
Options exercisable at December 31, 2011		3,749,481		$	25.19		5.66	$	22,446
Options expected to vest		3,103,537		$	26.36		7.91	$	14,245

        The following table provides the aggregate intrinsic value of stock options exercised for the years ended December 31, 2009, 2010 and 2011:

	Year Ended December 31,
	2009		2010		2011
Aggregate intrinsic value of stock options exercised	$	18,929	$	12,063	$	37,901

Restricted Stock and Restricted Stock Units

        Under our various stock option plans, we may also issue grants of restricted stock or restricted stock units ("RSUs"). Our restricted stock and RSUs generally have a three to five year vesting period. The fair value of restricted stock and RSUs is the excess of the market price of our common stock at the date of grant over the purchase price (which is typically zero).

92

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

2. Summary of Significant Accounting Policies (Continued)

        A summary of restricted stock and RSUs activity for the year ended December 31, 2011 is as follows:

	Restricted Stock and RSUs			Weighted- Average Grant-Date Fair Value
Non-vested at December 31, 2010		168,221		$	22.53
Granted		609,743			29.77
Vested		(39,844	)		23.69
Forfeited		(127,169	)		26.53
Non-vested at December 31, 2011		610,951		$	28.85

        The total fair value of restricted stock vested for the years ended December 31, 2009, 2010 and 2011 was $0, $13 and $13, respectively. No RSUs vested during 2009 and 2010. The total fair value of RSUs vested for the year ended December 31, 2011 was $931.

Performance Units

        Under our various stock option plans, we may also issue grants of performance units ("PUs"). The number of PUs earned will be determined based on our performance against predefined targets, which for 2011 were calendar year revenue growth and return on invested capital ("ROIC"). The range of payout is zero to 150% of the number of granted PUs. The number of PUs earned will be determined based on actual performance at the end of the one-year performance period, and the award will be settled in shares of our common stock, subject to cliff vesting, three years from the date of the original PU grant. Additionally, employees who are employed through the one-year anniversary of the date of grant and who reach both 55 years of age and 10 years of qualifying service (the "retirement criteria") shall immediately and completely vest in any PUs earned based on the actual achievement against the predefined targets as discussed above. As a result, PUs will be expensed over the shorter of (a) achievement of the retirement criteria, which such achievement may occur as early as one year after the date of grant, or (b) a maximum of three years.

        In 2011, we issued 154,239 PUs. During the one-year performance period, we will forecast the likelihood of achieving the annual revenue growth and ROIC predefined targets in order to calculate the expected PUs to be earned. We will record a compensation charge based on either the forecasted PUs to be earned (during the one-year performance period) or the actual PUs earned (at the one-year anniversary date) over the vesting period for each individual grant as described above. The performance unit liability is remeasured at each fiscal quarter-end during the vesting period using the estimated percentage of units earned multiplied by the closing market price of our common stock on the current period-end date and is pro-rated based on the amount of time passed in the vesting period. As of December 31, 2011, we expected 99.6% achievement of the predefined revenue and ROIC targets associated with the grants made in 2011 and the closing market price of our common stock was $30.80.

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IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

2. Summary of Significant Accounting Policies (Continued)

        A summary of PU activity for the year ended December 31, 2011 is as follows:

	PUs
Non-vested at December 31, 2010		—
Granted		154,239
Vested		—
Forfeited		(41,490	)
Non-vested at December 31, 2011		112,749

Employee Stock Purchase Plan

        We offer an employee stock purchase plan (the "ESPP") in which participation is available to substantially all U.S. and Canadian employees who meet certain service eligibility requirements. The ESPP provides a way for our eligible employees to become stockholders on favorable terms. The ESPP provides for the purchase of our common stock by eligible employees through successive offering periods. We generally have two six-month offering periods per year, the first of which begins June 1 and ends November 30 and the second of which begins December 1 and ends May 31. During each offering period, participating employees accumulate after-tax payroll contributions, up to a maximum of 15% of their compensation, to pay the exercise price of their options. Participating employees may withdraw from an offering period before the purchase date and obtain a refund of the amounts withheld as payroll deductions. At the end of the offering period, outstanding options are exercised, and each employee's accumulated contributions are used to purchase our common stock. The price for shares purchased under the ESPP is 95% of the fair market price at the end of the offering period, without a look-back feature. As a result, we do not recognize compensation cost for the ESPP shares purchased. The ESPP was amended and approved by our stockholders on May 26, 2005 and the number of shares available for purchase under the ESPP was increased to 3,487,500. For the years ended December 31, 2009, 2010 and 2011, there were 258,680 shares, 257,381 shares and 154,559 shares, respectively, purchased under the ESPP. The number of shares available for purchase under the ESPP at December 31, 2011 was 399,761.

        As of December 31, 2011, unrecognized compensation cost related to the unvested portion of our Employee Stock-Based Awards was $40,454 and is expected to be recognized over a weighted-average period of 2.9 years.

        We generally issue shares for the exercises of stock options, restricted stock, RSUs, PUs and shares under our ESPP from unissued reserved shares.

o.

Income Taxes

        Accounting for income taxes requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the tax and financial reporting basis of assets and liabilities and for loss and credit carryforwards. Valuation allowances are provided when recovery of deferred tax assets is not considered more likely than not. We have elected to recognize

94

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

2. Summary of Significant Accounting Policies (Continued)

interest and penalties associated with uncertain tax positions as a component of the provision for income taxes in the accompanying consolidated statements of operations.

p.

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 options, warrants or convertible securities) that were outstanding during the period, unless the effect is antidilutive.

        The following table presents the calculation of basic and diluted income (loss) per share:

	Year Ended December 31,
	2009			2010			2011
Income (Loss) from continuing operations	$	231,517		$	166,739		$	246,412
Total income (loss) from discontinued operations (see Note 14)	$	(12,138	)	$	(219,417	)	$	153,180
Net income (loss) attributable to Iron Mountain Incorporated	$	217,950		$	(57,586	)	$	395,538
Weighted-average shares—basic		202,812,000			201,991,000			194,777,000
Effect of dilutive potential stock options		1,458,777			—			1,060,477
Effect of dilutive potential restricted stock, RSUs and PUs		41			—			100,136
Weighted-average shares—diluted		204,270,818			201,991,000			195,937,613
Earnings (Losses) per share—basic:
Income (Loss) from continuing operations	$	1.14		$	0.83		$	1.27
Total income (loss) from discontinued operations (see Note 14)	$	(0.06	)	$	(1.09	)	$	0.79
Net income (loss) attributable to Iron Mountain Incorporated—basic	$	1.07		$	(0.29	)	$	2.03
Earnings (Losses) per share—diluted:
Income (Loss) from continuing operations	$	1.13		$	0.83		$	1.26
Total income (loss) from discontinued operations (see Note 14)	$	(0.06	)	$	(1.09	)	$	0.78
Net income (loss) attributable to Iron Mountain Incorporated—diluted	$	1.07		$	(0.29	)	$	2.02
Antidilutive stock options, RSUs and PUs, excluded from the calculation		8,085,784			9,305,328			3,973,760

95

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

2. Summary of Significant Accounting Policies (Continued)

q.

New Accounting Pronouncements

        In September 2011, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") No. 2011-08, Intangibles—Goodwill and Other (Topic 350): Testing Goodwill for Impairment. ASU 2011-08 allows but does not require entities to first assess qualitatively whether it is necessary to perform the two-step goodwill impairment test. If an entity believes, as a result of its qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative two-step impairment test is required; otherwise, no further testing is required. ASU 2011-08 is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, with early adoption permitted. The adoption of this ASU 2011-08 will not have a material impact on our consolidated financial position, results of operations or cash flows.

r.

Allowance for Doubtful Accounts and Credit Memo Reserves

        We maintain an allowance for doubtful accounts and credit memos for estimated losses resulting from the potential inability of our customers to make required payments and potential disputes regarding billing and service issues. When calculating the allowance, we consider our past loss experience, current and prior trends in our aged receivables and credit memo activity, current economic conditions and specific circumstances of individual receivable balances. If the financial condition of our customers were to significantly change, resulting in a significant improvement or impairment of their ability to make payments, an adjustment of the allowance may be required. We consider accounts receivable to be delinquent after such time as reasonable means of collection have been exhausted. We charge-off uncollectible balances as circumstances warrant, generally, no later than one year past due.

        Rollforward of allowance for doubtful accounts and credit memo reserves is as follows:

Year Ended December 31,	Balance at Beginning of the Year		Credit Memos Charged to Revenue		Allowance for Bad Debts Charged to Expense		Other(1)			Deductions(2)			Balance at End of the Year
2009	$	16,412	$	39,018	$	8,994	$	1,006		$	(45,835	)	$	19,595
2010		19,595		42,204		11,801		(481	)		(52,372	)		20,747
2011		20,747		39,343		9,506		(205	)		(46,114	)		23,277

(1)

Primarily consists of recoveries of previously written-off accounts receivable, allowances of businesses acquired and the impact associated with currency translation adjustments.

(2)

Primarily consists of the write-off of accounts receivable.

s.

Concentrations of Credit Risk

        Financial instruments that potentially subject us to market risk consist principally of cash and cash equivalents (including money market funds and time deposits), restricted cash (primarily U.S. Treasuries) and accounts receivable. The only significant concentrations of liquid investments as of December 31, 2011 relate to cash and cash equivalents and restricted cash held on deposit with five global banks and one "Triple A" rated money market fund which we consider to be large, highly-rated investment-grade institutions. As per our risk management investment policy, we limit exposure to

96

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

2. Summary of Significant Accounting Policies (Continued)

concentration of credit risk by limiting the amount invested in any one mutual fund or financial institution to a maximum of $50,000. As of December 31, 2011, our cash and cash equivalent and restricted cash balance was $214,955, including a money market fund and time deposits amounting to $181,823. A substantial portion of the money market fund is invested in U.S. Treasuries.

t.

Fair Value Measurements

        Entities are permitted under GAAP to elect to measure many financial instruments and certain other items at either fair value or cost. We did not elect the fair value measurement option for any of our financial assets or liabilities.

        Our financial assets or liabilities are 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 following tables provide the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2010 and 2011, respectively:

			Fair Value Measurements at December 31, 2010 Using
Description	Total Carrying Value at December 31, 2010		Quoted prices in active markets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)
Money Market Funds(1)	$	107,129	$	—		$	107,129		$	—
Time Deposits(1)		134,022		—			134,022			—
Trading Securities		9,215		8,527	(2)		688	(1)		—
Derivative Assets(3)		2,500		—			2,500			—
Derivative Liabilities(3)		2,440		—			2,440			—

97

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

2. Summary of Significant Accounting Policies (Continued)

			Fair Value Measurements at December 31, 2011 Using
Description	Total Carrying Value at December 31, 2011		Quoted prices in active markets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)
Money Market Funds(1)	$	35,110	$	—		$	35,110		$	—
Time Deposits(1)		146,713		—			146,713			—
Trading Securities		9,124		8,497	(2)		627	(1)		—
Derivative Assets(3)		2,803		—			2,803			—
Derivative Liabilities(3)		435		—			435			—

(1)

Money market funds and time deposits (including certain trading securities) are measured based on quoted prices for similar assets and/or subsequent transactions.

(2)

Securities are measured at fair value using quoted market prices.

(3)

Our derivative assets and liabilities primarily relate to short-term (six months or less) foreign currency contracts that we have entered into to hedge our intercompany exposures denominated in British pounds sterling and Australian dollars. We calculate the fair 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.

        Disclosures are required in the financial statements for items measured at fair value on a non-recurring basis. We did not have any material items that are measured at fair value on a non-recurring basis for the years ended December 31, 2010 and 2011, except goodwill calculated based on Level 3 inputs, as more fully disclosed at Note 2.g.

u.

Available-for-sale and Trading Securities

        We have one trust that holds marketable securities. Marketable securities are classified as available-for-sale or trading. As of December 31, 2010 and 2011, the fair value of the money market and mutual funds included in this trust amounted to $9,215 and $9,124, respectively, and were included in prepaid expenses and other in the accompanying consolidated balance sheets. We classified these marketable securities included in the trust as trading, and included in other expense (income), net in the accompanying consolidated statement of operations realized and unrealized net gains of $1,745, $1,221 and net losses of $321 for the years ended December 31, 2009, 2010 and 2011, respectively.

v.

Investments

        As of December 31, 2011, we have investments in joint ventures, including noncontrolling interests, in Iron Mountain A/S of 20% (Denmark), in Iron Mountain Arsivleme Hizmetleri A.S. of 40% (Turkey), in Sispace AG of 15% (Switzerland) and in Kelman Technologies Inc. of 25% (U.S. and Canada). These investments are accounted for using the equity method because we exercise significant influence over these entities and their operations. As of December 31, 2010 and 2011, the carrying value related to our equity investments was $9,663 and $3,499, respectively, included in other assets in the accompanying consolidated balance sheets.

98

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

2. Summary of Significant Accounting Policies (Continued)

w.

Accumulated Other Comprehensive Items, Net

        Accumulated other comprehensive items, net consists of foreign currency translation adjustments as of December, 31, 2010 and 2011.

x.

Other Expense (Income), Net

        Other expense (income), net consists of the following:

	Year Ended December 31,
	2009			2010		2011
Foreign currency transaction (gains) losses, net	$	(12,845	)	$	5,664	$	17,352
Debt extinguishment expense, net		3,031			1,792		993
Other, net		(2,785	)		1,312		(5,302	)
	$	(12,599	)	$	8,768	$	13,043

y.

Immaterial Restatement

        Subsequent to the issuance of the Company's 2010 financial statements, the Company's management identified a government contract billing error more fully discussed at Note 10.h., which resulted in an overstatement of prior years reported revenue by an amount currently estimated to be approximately $17,000 in the aggregate. While no prior period financial statement was materially misstated, we have determined that the cumulative impact of recording this adjustment would have significantly distorted our results for the year ended December 31, 2011. As a result, we have restated beginning retained earnings as of December 31, 2008 for the cumulative impact of activity prior to December 31, 2008 in the amount of $3,784. Additionally, we have restated our 2009 and 2010 consolidated statements of operations and consolidated statements of equity and our 2010 consolidated balance sheet to reflect the impact in those particular years. There was no change to the following lines of the 2009 and 2010 consolidated statements of cash flows: (1) cash flows from operating activities, (2) cash flows from investing activities and (3) cash flows from financing activities.

99

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

2. Summary of Significant Accounting Policies (Continued)

        The following table sets forth the effect of the immaterial restatement to certain line items of our consolidated statements of operations for the years ended December 31, 2009 and 2010:

	Year Ended December 31,
	2009			2010
Storage	$	(2,327	)	$	(2,955	)
Service		(2,486	)		(3,068	)
Total Revenues	$	(4,813	)	$	(6,023	)
Operating Income (Loss)	$	(4,813	)	$	(6,023	)
Income (Loss) from Continuing Operations before Provision (Benefit) for Income Taxes	$	(4,813	)	$	(6,023	)
Provision (Benefit) for Income Taxes	$	(1,886	)	$	(2,337	)
Income (Loss) from Continuing Operations	$	(2,927	)	$	(3,686	)
Net Income (Loss)	$	(2,927	)	$	(3,686	)
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	(2,927	)	$	(3,686	)
Earnings (Losses) per Share—Basic:
Income (Loss) from Continuing Operations	$	(0.01	)	$	(0.02	)
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	(0.01	)	$	(0.02	)
Earnings (Losses) per Share—Diluted:
Income (Loss) from Continuing Operations	$	(0.01	)	$	(0.02	)
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	(0.01	)	$	(0.02	)

        The following table sets forth the effect of the immaterial restatement to certain line items of our consolidated balance sheet as of December 31, 2010:

Prepaid Expenses and Other	$	6,660
Total Current Assets	$	6,660
Total Assets	$	6,660
Deferred Revenue	$	17,057
Total Current Liabilities	$	17,057
Retained Earnings	$	(10,397	)
Total Iron Mountain Incorporated Stockholders' Equity	$	(10,397	)
Total Equity	$	(10,397	)
Total Liabilities and Equity	$	6,660

100

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

3. Derivative Instruments and Hedging Activities

        We have entered into a number of separate forward contracts to hedge our exposures in British pounds sterling and Australian dollars. As of December 31, 2011, we had an outstanding forward contract to purchase $195,610 U.S. dollars and sell 125,000 British pounds sterling to hedge our intercompany exposures with IME. In the fourth quarter of 2010, we entered into a forward contract to hedge our exposures in Australian dollars. As of December 31, 2011, we had an outstanding forward contract to purchase $75,065 U.S. dollars and sell 73,000 Australian dollars to hedge our intercompany exposures with our Australian subsidiary. At the maturity of the forward contracts, we may enter into new forward contracts to hedge movements in the underlying currencies. At the time of settlement, we either pay or receive the net settlement amount from the forward contract and recognize this amount in other (income) expense, net in the accompanying statement of operations as a realized foreign exchange gain or loss. At the end of each month, we mark the outstanding forward contracts to market and record an unrealized foreign exchange gain or loss for the mark-to-market valuation. We have not designated these forward contracts as hedges. During the years ended December 31, 2009, 2010 and 2011, there was $2,392 in net cash disbursements, $2,030 in net cash receipts and $1,092 in net cash disbursements, respectively, included in cash from operating activities from continuing operations related to settlements associated with these foreign currency forward contracts. The following table provides the fair value of our derivative instruments as of December 31, 2010 and 2011 and their gains and losses for the years ended December 31, 2009, 2010 and 2011:

	Asset Derivatives
	December 31,
	2010			2011
Derivatives Not Designated as Hedging Instruments	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Foreign exchange contracts	Current assets	$	2,500	Current assets	$	2,803
Total		$	2,500		$	2,803

	Liability Derivatives
	December 31,
	2010			2011
Derivatives Not Designated as Hedging Instruments	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Foreign exchange contracts	Current liabilities	$	2,440	Current liabilities	$	435
Total		$	2,440		$	435

		Amount of (Gain) Loss Recognized in Income on Derivatives
		December 31,
	Location of (Gain) Loss Recognized in Income on Derivative
Derivatives Not Designated as Hedging Instruments		2009		2010		2011
Foreign exchange contracts	Other expense (income), net	$	11,952	$	2,025	$	(1,209	)
Total		$	11,952	$	2,025	$	(1,209	)

101

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

3. Derivative Instruments and Hedging Activities (Continued)

        We have designated a portion of our 6³/4% Euro Senior Subordinated Notes due 2018 issued by IMI (the "6³/4% Notes") as a hedge of net investment of certain of our Euro denominated subsidiaries. For the years ended December 31, 2009, 2010 and 2011, we designated on average 95,500, 74,750 and 86,750 Euros, respectively, of the 6³/4% Notes as a hedge of net investment of certain of our Euro denominated subsidiaries. As a result, we recorded foreign exchange gains of $1,863 ($989, net of tax) related to the change in fair value of such debt due to currency translation adjustments which is a component of accumulated other comprehensive items, net included in stockholders' equity for the year ended December 31, 2009. We recorded foreign exchange gains of $7,392 ($4,620, net of tax) related to the change in fair value of such debt due to currency translation adjustments which is a component of accumulated other comprehensive items, net included in stockholders' equity for the year ended December 31, 2010. We recorded foreign exchange gains of $8,634 ($5,411, net of tax) related to the change in fair value of such debt due to currency translation adjustments which is a component of accumulated other comprehensive items, net included in stockholders' equity for the year ended December 31, 2011. As of December 31, 2011, net gains of $13,390 are recorded in accumulated other comprehensive items, net associated with this net investment hedge.

102

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

4. Debt

        Long-term debt consists of the following:

	December 31, 2010					December 31, 2011
	Carrying Amount			Fair Value		Carrying Amount			Fair Value
IMI Revolving Credit Facility(1)	$	—		$	—	$	—		$	—
IMI Term Loan Facility(1)		396,200			396,200		—			—
New Revolving Credit Facility(1)		—			—		96,000			96,000
New Term Loan Facility(1)		—			—		487,500			487,500
71/4% GBP Senior Subordinated Notes due 2014 (the "71/4% Notes")(2)(3)		232,530			234,855		233,115			233,115
73/4% Senior Subordinated Notes due 2015 (the "73/4% Notes due 2015")(2)(3)		233,234			231,683		—			—
65/8% Senior Subordinated Notes due 2016 (the "65/8% Notes")(2)(3)		317,529			321,592		318,025			320,400
71/2% CAD Senior Subordinated Notes due 2017 (the "Subsidiary Notes")(2)(4)		175,306			182,099		171,273			174,698
83/4% Senior Subordinated Notes due 2018 (the "83/4% Notes")(2)(3)		200,000			209,625		200,000			209,000
8% Senior Subordinated Notes due 2018 (the "8% Notes")(2)(3)		49,777			53,756		49,806			47,607
63/4% Euro Senior Subordinated Notes due 2018 (the "63/4% Notes")(2)(3)		338,129			337,631		328,750			312,352
73/4% Senior Subordinated Notes due 2019 (the "73/4% Notes due 2019")(2)(3)		—			—		400,000			422,750
8% Senior Subordinated Notes due 2020 (the "8% Notes due 2020")(2)(3)		300,000			316,313		300,000			313,313
83/8% Senior Subordinated Notes due 2021 (the "83/8% Notes")(2)(3)		548,174			589,188		548,346			586,438
Real Estate Mortgages, Capital Leases and Other(5)		217,328			217,328		220,773			220,773
Total Long-term Debt		3,008,207					3,353,588
Less Current Portion		(96,081	)(6)				(73,320	)
Long-term Debt, Net of Current Portion	$	2,912,126				$	3,280,268

(1)

The capital stock or other equity interests of most of our U.S. subsidiaries, and up to 66% of the capital stock or other equity interests of our first-tier foreign subsidiaries, are pledged to secure these debt instruments, together with all intercompany obligations of foreign subsidiaries owed to us or to one of our U.S. subsidiary guarantors. The fair value of this long-term debt approximates the carrying value (as borrowings under these debt instruments are based on current variable market interest rates as of December 31, 2010 and 2011, respectively).

103

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

4. Debt (Continued)

(2)

The fair values of these debt instruments are based on quoted market prices for these notes on December 31, 2010 and 2011, respectively.

(3)

Collectively, the "Parent Notes". IMI is the direct obligor on the Parent Notes, which are fully and unconditionally guaranteed, on a senior subordinated basis, by substantially all of its direct and indirect wholly owned U.S. subsidiaries (the "Guarantors"). These guarantees are joint and several obligations of the Guarantors. Iron Mountain Canada Corporation ("Canada Company") and the remainder of our subsidiaries do not guarantee the Parent Notes.

(4)

Canada Company is the direct obligor on the Subsidiary Notes, which are fully and unconditionally guaranteed, on a senior subordinated basis, by IMI and the Guarantors. These guarantees are joint and several obligations of IMI and the Guarantors.

(5)

Includes (a) real estate mortgages of $7,492 and $5,232 as of December 31, 2010 and 2011, respectively, which bear interest at rates ranging from 2.0% to 5.5% and are payable in various installments through 2021, (b) capital lease obligations of $200,996 and $207,300 as of December 31, 2010 and 2011, respectively, which bear a weighted average interest rate of 5.8% as of December 31, 2011 and (c) other various notes and other obligations, which were assumed by us as a result of certain acquisitions, of $8,840 and $8,241 as of December 31, 2010 and 2011, respectively, and bear a weighted average interest rate of 8.7% as of December 31, 2011. We believe the fair value of this debt approximates its carrying value.

(6)

Includes $51,694 associated with the 7³/4% Notes which we fully redeemed in January 2011. This amount represents the portion of the redemption funded with cash on-hand. The remaining funds were drawn under the revolving credit facility.

a.

Revolving Credit Facility and Term Loans

        On June 27, 2011, we entered into a new credit agreement to replace the IMI revolving credit facility and the IMI term loan facility, each entered into on April 16, 2007. The new credit agreement consists of (i) revolving credit facilities under which we can borrow, subject to certain limitations as defined in the new credit agreement, up to an aggregate amount of $725,000 (including Canadian dollars, British pounds sterling and Euros, among other currencies) (the "New Revolving Credit Facility") and (ii) a $500,000 term loan facility (the "New Term Loan Facility," and collectively with the New Revolving Credit Facility, the "New Credit Agreement"). We have the right to increase the aggregate amount available to be borrowed under the New Credit Agreement up to a maximum of $1,800,000. The New Revolving Credit Facility is supported by a group of 19 banks. IMI, Iron Mountain Information Management, Inc. ("IMIM"), Canada Company, IME, Iron Mountain Australia Pty Ltd., Iron Mountain Switzerland Gmbh and any other subsidiary of IMIM designated by IMIM (the "Other Subsidiaries") may, with the consent of the administrative agent, as defined in the New Credit Agreement, borrow under certain of the following tranches of the New Revolving Credit Facility: (a) tranche one in the amount of $400,000 is available to IMI and IMIM in U.S. dollars, British pounds sterling and Euros, (b) tranche two in the amount of $150,000 is available to IMI or IMIM in either U.S. dollars or Canadian dollars and available to Canada Company in Canadian dollars and (c) tranche three in the amount of $175,000 is available to IMI or IMIM and the Other Subsidiaries in U.S. dollars, Canadian dollars, British pounds sterling, Euros and Australian dollars, among others. The New

104

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

4. Debt (Continued)

Revolving Credit Facility terminates on June 27, 2016, at which point all revolving credit loans under such facility become due. With respect to the New Term Loan Facility, loan payments are required through maturity on June 27, 2016 in equal quarterly installments of the aggregate annual amounts based upon the following percentage of the original principal amount in the table below (except that each of the first three quarterly installments in the fifth year shall be 10% of the original principal amount and the final quarterly installment in the fifth year shall be 35% of the original principal):

Year Ending	Percentage
June 30, 2012		5	%
June 30, 2013		5	%
June 30, 2014		10	%
June 30, 2015		15	%
June 27, 2016		65	%

        The New Term Loan Facility may be prepaid without penalty or premium, in whole or in part, at any time. IMI and IMIM guarantee the obligations of each of the subsidiary borrowers. The capital stock or other equity interests of most of the U.S. subsidiaries, and up to 66% of the capital stock or other equity interests of our first-tier foreign subsidiaries, are pledged to secure the New Credit Agreement, together with all intercompany obligations of foreign subsidiaries owed to us or to one of our U.S. subsidiary guarantors. The interest rate on borrowings under the New Credit Agreement varies depending on our choice of interest rate and currency options, plus an applicable margin, which varies based on certain financial ratios. Additionally, the New Credit Agreement requires the payment of a commitment fee on the unused portion of the revolving credit facility, which fee ranges from between 0.3% to 0.5% based on certain financial ratios, as well as fees associated with any outstanding letters of credit. Proceeds from the New Credit Agreement are for general corporate purposes and were used to repay the previous revolving credit and term loan facilities. We recorded a charge of $1,843 to other expense (income), net in the second quarter of 2011 related to the early retirement of the previous revolving credit and term loan facilities, representing a write-off of deferred financings costs. As of December 31, 2011, we had $96,000 of outstanding borrowings under the New Revolving Credit Facility, all of which was denominated in U.S. dollars; we also had various outstanding letters of credit totaling $5,833. The remaining availability on December 31, 2011, based on IMI's leverage ratio, which is calculated based on the last 12 months' earnings before interest, taxes, depreciation and amortization ("EBITDA"), and other adjustments as defined in the New Credit Agreement and current external debt, under the New Revolving Credit Facility was $623,167. The interest rate in effect under the New Revolving Credit Facility and New Term Loan Facility was 4.0% and 2.3%, respectively, as of December 31, 2011. For the years ended December 31, 2009, 2010 and 2011, we recorded commitment fees of $1,953, $2,348 and $2,038, respectively, based on the unused balances under our revolving credit facilities.

        The New 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 New Credit Agreement, our indentures or other

105

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

4. Debt (Continued)

agreements governing our indebtedness. The New Credit Agreement, as well as our indentures, use EBITDA-based calculations as primary measures of financial performance, including leverage and fixed charge coverage ratios. IMI's revolving credit and term leverage ratio was 2.9 and 3.4 as of December 31, 2010 and 2011, respectively, compared to a maximum allowable ratio of 5.5. Similarly, our bond leverage ratio, per the indentures, was 3.4 and 3.9 as of December 31, 2010 and 2011, respectively, compared to a maximum allowable ratio of 6.5. IMI's revolving credit and term loan fixed charge coverage ratio was 1.5 as of December 31, 2011, compared to a minimum allowable ratio of 1.2. Noncompliance with these leverage and fixed charge coverage ratios would have a material adverse effect on our financial condition and liquidity. In the fourth quarter of 2007, we designated as Excluded Restricted Subsidiaries (as defined in the indentures), certain of our subsidiaries that own our assets and conduct our operations in the United Kingdom. As a result of such designation, these subsidiaries are now subject to substantially all of the covenants of the indentures, except that they are not required to provide a guarantee, and the EBITDA and debt of these subsidiaries is included for purposes of calculating the leverage ratio.

b.

Notes Issued under Indentures

        As of December 31, 2011, we had nine series of senior subordinated notes issued under various indentures, eight are direct obligations of the parent company, IMI; one (the Subsidiary Notes) is a direct obligation of Canada Company; and all are subordinated to debt outstanding under the Credit Agreement:

•

150,000 British pounds sterling principal amount of notes maturing on April 15, 2014 and bearing interest at a rate of 7¹/4% per annum, payable semi-annually in arrears on April 15 and October 15;

•

$320,000 principal amount of notes maturing on January 1, 2016 and bearing interest at a rate of 6⁵/8% per annum, payable semi-annually in arrears on January 1 and July 1;

•

175,000 CAD principal amount of notes maturing on March 15, 2017 and bearing interest at a rate of 7¹/2% per annum, payable semi-annually in arrears on March 15 and September 15 (the "Subsidiary Notes");

•

$200,000 principal amount of notes maturing on July 15, 2018 and bearing interest at a rate of 8³/4% per annum, payable semi-annually in arrears on January 15 and July 15;

•

$50,000 principal amount of notes maturing on October 15, 2018 and bearing interest at a rate of 8% per annum, payable semi-annually in arrears on April 15 and October 15;

•

255,000 Euro principal amount of notes maturing on October 15, 2018 and bearing interest at a rate of 6³/4% per annum, payable semi-annually in arrears on April 15 and October 15;

•

$400,000 principal amount of notes maturing on October 1, 2019 and bearing interest at a rate of 7³/4% per annum, payable semi-annually in arrears on April 1 and October 1;

•

$300,000 principal amount of notes maturing on June 15, 2020 and bearing interest at a rate of 8% per annum, payable semi-annually in arrears on June 15 and December 15; and

106

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

4. Debt (Continued)

•

$550,000 principal amount of notes maturing on August 15, 2021 and bearing interest at a rate of 8³/8% per annum, payable semi-annually in arrears on February 15 and August 15.

        The Parent Notes and the Subsidiary Notes are fully and unconditionally guaranteed, on a senior subordinated basis, by substantially all of our direct and indirect wholly owned U.S. subsidiaries (the "Guarantors"). These guarantees are joint and several obligations of the Guarantors. The remainder of our subsidiaries do not guarantee the senior subordinated notes. Additionally, IMI guarantees the Subsidiary Notes. Canada Company does not guarantee the Parent Notes.

        In September 2011, we completed an underwritten public offering of $400,000 in aggregate principal amount of our 7³/4% Senior Subordinated Notes due 2019, which were issued at 100% of par. Our net proceeds of $394,000 after paying the underwriters' discounts and commissions, were used for general corporate purposes, including funding a portion of the stockholder payout commitments we have made.

        We recorded a charge to other expense (income), net of $3,031 in the third quarter of 2009 related to the early extinguishment of our 8⁵/8% Senior Subordinated Notes due 2013 (the "8⁵/8% Notes"), which consists of deferred financing costs and original issue premiums and discounts related to the 8⁵/8% Notes. In September 2010, we redeemed $200,000 of the $431,255 aggregate principal amount outstanding of our 7³/4% Notes due 2015 at a redemption price of $1,012.92 for each one thousand dollars of principal amount of notes redeemed, plus accrued and unpaid interest. We recorded a charge to other expense (income), net of $1,792 in the third quarter of 2010 related to the early extinguishment of our 7³/4% Notes due 2015 that were redeemed. This charge consists of the call premium and deferred financing costs, net of original issue premiums related to our 7³/4% Notes due 2015 that were redeemed. In January 2011, we redeemed the remaining $231,255 aggregate principal amount outstanding of our 7³/4% Notes due 2015 at a redemption price of one thousand dollars for each one thousand dollars of principal amount of notes redeemed, plus accrued and unpaid interest. We recorded a gain to other expense (income), net of $850 in the first quarter of 2011 related to the early extinguishment of our 7³/4% Notes due 2015 that were redeemed. This gain consists of original issue premiums, net of deferred financing costs related to our 7³/4% Notes due 2015 that were redeemed.

        Each of the indentures for the notes provides that we may redeem the outstanding notes, in whole or in part, upon satisfaction of certain terms and conditions. In any redemption, we are also required to pay all accrued but unpaid interest on the outstanding notes.

        The following table presents the various redemption dates and prices of the senior subordinated notes. The redemption dates reflect the date at or after which the notes may be redeemed at our

107

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

4. Debt (Continued)

option at a premium redemption price. After these dates, the notes may be redeemed at 100% of face value:

Redemption Date	71/4% Notes April 15,			65/8% Notes July 1,			71/2% Notes March 15,			83/4% Notes July 15,			8% Notes October 15,			63/4% Notes October 15,			73/4% Notes October 1,			8% Notes June 15,			83/8% Notes August 15,
2011		101.208	%		100.000	%		—			104.375	%		104.000	%		103.375	%		—			—			—
2012		100.000	%		100.000	%		103.750	%		102.917	%		102.667	%		102.250	%		—			—			—
2013		100.000	%		100.000	%		102.500	%		101.458	%		101.333	%		101.125	%		—			104.000	%		—
2014		100.000	%		100.000	%		101.250	%		100.000	%		100.000	%		100.000	%		—			102.667	%		104.188	%
2015		—			100.000	%		100.000	%		100.000	%		100.000	%		100.000	%		103.875	%		101.333	%		102.792	%
2016		—			100.000	%		100.000	%		100.000	%		100.000	%		100.000	%		101.938	%		100.000	%		101.396	%
2017		—			—			100.000	%		100.000	%		100.000	%		100.000	%		100.000	%		100.000	%		100.000	%
2018		—			—			—			100.000	%		100.000	%		100.000	%		100.000	%		100.000	%		100.000	%

        Prior to June 15, 2013, the 8% Notes due 2020 are redeemable at our option, in whole or in part, at a specified make-whole price.

        Prior to August 15, 2014, the 8³/8% Notes are redeemable at our option, in whole or in part, at a specified make-whole price.

        Prior to October 1, 2015, the 7³/4% Notes due 2019 are redeemable at our option, in whole or in part, at a specified make-whole price.

        Each of the indentures for the notes provides that we must repurchase, at the option of the holders, the notes at 101% of their principal amount, plus accrued and unpaid interest, upon the occurrence of a "Change of Control," which is defined in each respective indenture. Except for required repurchases upon the occurrence of a Change of Control or in the event of certain asset sales, each as described in the respective indenture, we are not required to make sinking fund or redemption payments with respect to any of the notes.

        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 our indentures or other agreements governing our indebtedness.

108

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

4. Debt (Continued)

        Maturities of long-term debt are as follows:

Year	Amount
2012	$	73,320
2013		79,195
2014		321,177
2015		154,030
2016		652,318
Thereafter		2,079,155
		3,359,195
Net Premiums (Discounts)		(5,607	)
Total Long-term Debt (including current portion)	$	3,353,588

5. 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 December 31, 2010 and 2011 and for the years ended December 31, 2009, 2010 and 2011.

        The Parent Notes and the Subsidiary Notes are guaranteed by the subsidiaries referred to below as the "Guarantors." These subsidiaries are wholly owned by the Parent. The guarantees are full and unconditional, as well as joint and several.

        Additionally, IMI guarantees the Subsidiary Notes, which were issued by Canada Company. Canada Company does not guarantee the Parent Notes. The other subsidiaries that do not guarantee the Parent Notes or the Subsidiary Notes are referred to below as the "Non-Guarantors."

109

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

5. Selected Consolidated Financial Statements of Parent, Guarantors, Canada Company and Non-Guarantors (Continued)

	December 31, 2010
	Parent		Guarantors		Canada Company		Non- Guarantors		Eliminations			Consolidated
Assets
Current Assets:
Cash and Cash Equivalents	$	13,909	$	121,584	$	37,652	$	85,548	$	—		$	258,693
Restricted Cash		35,105		—		—		—		—			35,105
Accounts Receivable		—		327,842		41,562		154,922		—			524,326
Intercompany Receivable		1,344,802		—		9,281		—		(1,354,083	)		—
Assets of Discontinued Operations		—		184,790		—		28,418		—			213,208
Other Current Assets		2,601		128,341		10,878		39,310		—			181,130
Total Current Assets		1,396,417		762,557		99,373		308,198		(1,354,083	)		1,212,462
Property, Plant and Equipment, Net		—		1,522,073		208,020		738,151		—			2,468,244
Other Assets, Net:
Long-term Notes Receivable from Affiliates and Intercompany Receivable		1,381,546		1,000		—		—		(1,382,546	)		—
Investment in Subsidiaries		1,853,560		1,599,133		—		—		(3,452,693	)		—
Goodwill		—		1,525,960		203,345		550,256		—			2,279,561
Other		27,304		236,497		13,601		159,352		(114	)		436,640
Assets of Discontinued Operations		—		—		—		19,486		—			19,486
Total Other Assets, Net		3,262,410		3,362,590		216,946		729,094		(4,835,353	)		2,735,687
Total Assets	$	4,658,827	$	5,647,220	$	524,339	$	1,775,443	$	(6,189,436	)	$	6,416,393
Liabilities and Equity
Intercompany Payable	$	—	$	1,325,593	$	—	$	28,490	$	(1,354,083	)	$	—
Current Portion of Long-term Debt		56,407		24,393		2,606		12,675		—			96,081
Total Other Current Liabilities		92,339		405,299		42,614		176,896		—			717,148
Liabilities of Discontinued Operations		—		53,374		—		8,100		—			61,474
Long-term Debt, Net of Current Portion		2,559,780		67,504		191,010		93,832		—			2,912,126
Long-term Notes Payable to Affiliates and Intercompany Payable		1,000		1,381,546		—		—		(1,382,546	)		—
Other Long-term Liabilities		3,853		551,961		27,585		91,644		(114	)		674,929
Liabilities of Discontinued Operations		—		—		—		1,770		—			1,770
Commitments and Contingencies (See Note 10)
Total Iron Mountain Incorporated Stockholders' Equity		1,945,448		1,837,550		260,524		1,354,619		(3,452,693	)		1,945,448
Noncontrolling Interests		—		—		—		7,417		—			7,417
Total Equity		1,945,448		1,837,550		260,524		1,362,036		(3,452,693	)		1,952,865
Total Liabilities and Equity	$	4,658,827	$	5,647,220	$	524,339	$	1,775,443	$	(6,189,436	)	$	6,416,393

110

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

5. Selected Consolidated Financial Statements of Parent, Guarantors, Canada Company and Non-Guarantors (Continued)

	December 31, 2011
	Parent		Guarantors		Canada Company		Non- Guarantors		Eliminations			Consolidated
Assets
Current Assets:
Cash and Cash Equivalents	$	3,428	$	10,750	$	68,907	$	96,760	$	—		$	179,845
Restricted Cash		35,110		—		—		—		—			35,110
Accounts Receivable		—		334,658		40,115		168,694		—			543,467
Intercompany Receivable		905,451		—		4,639		—		(910,090	)		—
Assets of Discontinued Operations		—		—		—		7,256		—			7,256
Other Current Assets		2,016		103,899		3,323		40,538		(1,004	)		148,772
Total Current Assets		946,005		449,307		116,984		313,248		(911,094	)		914,450
Property, Plant and Equipment, Net		1,490		1,480,785		200,755		724,053		—			2,407,083
Other Assets, Net:
Long-term Notes Receivable from Affiliates and Intercompany Receivable		928,182		1,000		2,961		15,010		(947,153	)		—
Investment in Subsidiaries		1,828,712		1,563,690		—		—		(3,392,402	)		—
Goodwill		—		1,529,359		196,989		527,920		—			2,254,268
Other		27,226		240,557		9,804		187,870					465,457
Total Other Assets, Net		2,784,120		3,334,606		209,754		730,800		(4,339,555	)		2,719,725
Total Assets	$	3,731,615	$	5,264,698	$	527,493	$	1,768,101	$	(5,250,649	)	$	6,041,258
Liabilities and Equity
Intercompany Payable	$	—	$	856,808	$	—	$	53,282	$	(910,090	)	$	—
Current Portion of Long-term Debt		658		46,967		2,658		23,037		—			73,320
Total Other Current Liabilities		100,921		453,648		31,407		187,421		(1,004	)		772,393
Liabilities of Discontinued Operations		—		—		—		3,317		—			3,317
Long-term Debt, Net of Current Portion		2,378,040		630,118		185,953		86,157		—			3,280,268
Long-term Notes Payable to Affiliates and Intercompany Payable		1,000		946,153		—		—		(947,153	)		—
Other Long-term Liabilities		5,308		528,897		31,418		92,081					657,704
Commitments and Contingencies (See Note 10)
Total Iron Mountain Incorporated Stockholders' Equity		1,245,688		1,802,107		276,057		1,314,238		(3,392,402	)		1,245,688
Noncontrolling Interests		—		—		—		8,568		—			8,568
Total Equity		1,245,688		1,802,107		276,057		1,322,806		(3,392,402	)		1,254,256
Total Liabilities and Equity	$	3,731,615	$	5,264,698	$	527,493	$	1,768,101	$	(5,250,649	)	$	6,041,258

111

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

5. Selected Consolidated Financial Statements of Parent, Guarantors, Canada Company and Non-Guarantors (Continued)

	Year Ended December 31, 2009
	Parent			Guarantors			Canada Company			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage	$	—		$	1,094,221		$	93,244		$	346,327		$	—		$	1,533,792
Service		—			822,907			96,764			320,921			—			1,240,592
Total Revenues		—			1,917,128			190,008			667,248			—			2,774,384
Operating Expenses:
Cost of Sales (Excluding Depreciation and Amortization)		—			778,296			80,205			343,370			—			1,201,871
Selling, General and Administrative		92			523,698			32,127			194,017			—			749,934
Depreciation and Amortization		231			189,990			15,717			71,248			—			277,186
Loss (Gain) on Disposal/Write-down of Property, Plant and Equipment, Net		—			1,205			123			(1,160	)		—			168
Total Operating Expenses		323			1,493,189			128,172			607,475			—			2,229,159
Operating (Loss) Income		(323	)		423,939			61,836			59,773			—			545,225
Interest Expense (Income), Net		202,947			(41,320	)		42,066			8,852			—			212,545
Other Expense (Income), Net		44,642			(5,131	)		(2	)		(52,108	)		—			(12,599	)
(Loss) Income from Continuing Operations
Before Provision (Benefit) for Income Taxes		(247,912	)		470,390			19,772			103,029			—			345,279
Provision (Benefit) for Income Taxes		—			100,409			3,624			9,729			—			113,762
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax		(465,862	)		(102,601	)		—			—			568,463			—
Income (Loss) from Continuing Operations		217,950			472,582			16,148			93,300			(568,463	)		231,517
(Loss) Income from Discontinued Operations		—			(10,168	)		—			(1,970	)		—			(12,138	)
Net Income (Loss)		217,950			462,414			16,148			91,330			(568,463	)		219,379
Less: Net Income (Loss) Attributable to Noncontrolling Interests		—			—			—			1,429			—			1,429
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	217,950		$	462,414		$	16,148		$	89,901		$	(568,463	)	$	217,950

112

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

5. Selected Consolidated Financial Statements of Parent, Guarantors, Canada Company and Non-Guarantors (Continued)

	Year Ended December 31, 2010
	Parent			Guarantors			Canada Company		Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage	$	—		$	1,113,674		$	110,768	$	374,276		$	—		$	1,598,718
Service		—			836,443			113,498		343,690			—			1,293,631
Total Revenues		—			1,950,117			224,266		717,966			—			2,892,349
Operating Expenses:
Cost of Sales (Excluding Depreciation and Amortization)		—			746,479			86,352		360,031			—			1,192,862
Selling, General and Administrative		68			516,664			36,587		219,492			—			772,811
Depreciation and Amortization		223			201,534			18,818		83,630			—			304,205
Intangible Impairments		—			84,611			—		1,298			—			85,909
(Gain) Loss on Disposal/Write-down of Property, Plant and Equipment, Net		—			(1,039	)		196		(10,144	)		—			(10,987	)
Total Operating Expenses		291			1,548,249			141,953		654,307			—			2,344,800
Operating (Loss) Income		(291	)		401,868			82,313		63,659			—			547,549
Interest Expense (Income), Net		194,689			(41,770	)		44,898		6,742			—			204,559
Other (Income) Expense, Net		(22,662	)		(1,882	)		18		33,294			—			8,768
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes		(172,318	)		445,520			37,397		23,623			—			334,222
Provision (Benefit) for Income Taxes		—			151,329			11,142		5,012			—			167,483
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax		(114,732	)		(34,014	)		—		—			148,746			—
(Loss) Income from Continuing Operations		(57,586	)		328,205			26,255		18,611			(148,746	)		166,739
(Loss) Income from Discontinued Operations		—			(215,479	)		—		(3,938	)		—			(219,417	)
Net (Loss) Income		(57,586	)		112,726			26,255		14,673			(148,746	)		(52,678	)
Less: Net Income (Loss) Attributable to Noncontrolling Interests		—			—			—		4,908			—			4,908
Net (Loss) Income Attributable to Iron Mountain Incorporated	$	(57,586	)	$	112,726		$	26,255	$	9,765		$	(148,746	)	$	(57,586	)

113

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

5. Selected Consolidated Financial Statements of Parent, Guarantors, Canada Company and Non-Guarantors (Continued)

	Year Ended December 31, 2011
	Parent			Guarantors			Canada Company			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage	$	—		$	1,132,743		$	120,476		$	429,771		$	—		$	1,682,990
Service		—			833,652			115,973			382,088			—			1,331,713
Total Revenues		—			1,966,395			236,449			811,859			—			3,014,703
Operating Expenses:
Cost of Sales (Excluding Depreciation and Amortization)		2,000			760,300			91,249			391,651			—			1,245,200
Selling, General and Administrative		(1,885	)		548,848			38,965			248,663			—			834,591
Depreciation and Amortization		457			192,551			18,685			107,806			—			319,499
Intangible Impairments		—			—			—			46,500			—			46,500
(Gain) Loss on Disposal/Write-down of Property, Plant and Equipment, Net		—			(1,120	)		(420	)		(746	)		—			(2,286	)
Total Operating Expenses		572			1,500,579			148,479			793,874			—			2,443,504
Operating (Loss) Income		(572	)		465,816			87,970			17,985			—			571,199
Interest Expense (Income), Net		173,738			(24,055	)		44,559			11,014			—			205,256
Other (Income) Expense, Net		(3,944	)		7,561			315			9,111			—			13,043
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes		(170,366	)		482,310			43,096			(2,140	)		—			352,900
Provision (Benefit) for Income Taxes		—			86,139			20,681			(332	)		—			106,488
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax		(565,904	)		23,069			—			—			542,835			—
Income (Loss) from Continuing Operations		395,538			373,102			22,415			(1,808	)		(542,835	)		246,412
(Loss) Income from Discontinued Operations		—			(17,350	)		—			(30,089	)		—			(47,439	)
Gain (Loss) on Sale of Discontinued Operations		—			198,735			—			1,884			—			200,619
Net (Loss) Income		395,538			554,487			22,415			(30,013	)		(542,835	)		399,592
Less: Net Income (Loss) Attributable to Noncontrolling Interests		—			—			—			4,054			—			4,054
Net (Loss) Income Attributable to Iron Mountain Incorporated	$	395,538		$	554,487		$	22,415		$	(34,067	)	$	(542,835	)	$	395,538

114

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

5. Selected Consolidated Financial Statements of Parent, Guarantors, Canada Company and Non-Guarantors (Continued)

	Year Ended December 31, 2009
	Parent			Guarantors			Canada Company			Non- Guarantors			Eliminations			Consolidated
Cash Flows from Operating Activities:
Cash Flows from Operating Activities-Continuing Operations	$	(186,314	)	$	602,593		$	38,154		$	132,137		$	—		$	586,570
Cash Flows from Operating Activities-Discontinued Operations		—			31,470			—			(1,129	)		—			30,341
Cash Flows from Operating Activities		(186,314	)		634,063			38,154			131,008			—			616,911
Cash Flows from Investing Activities:
Capital expenditures		—			(153,995	)		(22,042	)		(111,880	)		—			(287,917	)
Cash paid for acquisitions, net of cash acquired		—			(256	)		—			(1,262	)		—			(1,518	)
Intercompany loans to subsidiaries		284,604			17,807			—			—			(302,411	)		—
Investment in subsidiaries		(164,256	)		(164,256	)		—			—			328,512			—
Additions to customer relationship and acquisition costs		—			(6,711	)		(520	)		(3,510	)		—			(10,741	)
Investments in joint ventures		—			—			—			(3,114	)		—			(3,114	)
Proceeds from sales of property and equipment and other, net		—			3,717			45			829			—			4,591
Cash Flows from Investing Activities-Continuing Operations		120,348			(303,694	)		(22,517	)		(118,937	)		26,101			(298,699	)
Cash Flows from Investing Activities-Discontinued Operations		—			(20,261	)		—			(5,106	)		—			(25,367	)
Cash Flows from Investing Activities		120,348			(323,955	)		(22,517	)		(124,043	)		26,101			(324,066	)
Cash Flows from Financing Activities:
Repayment of revolving credit and term loan facilities and other debt		(54,150	)		(18,438	)		(192,097	)		(18,633	)		—			(283,318	)
Proceeds from revolving credit and term loan facilities and other debt		—			—			—			33,944			—			33,944
Early retirement of senior subordinated notes		(447,874	)		—			—			—			—			(447,874	)
Net proceeds from sale of senior subordinated notes		539,688			—			—			—			—			539,688
Debt financing (repayment to) and equity contribution from (distribution to) noncontrolling interests, net		—			—			—			1,064			—			1,064
Intercompany loans from parent		—			(283,974	)		5,751			(24,188	)		302,411			—
Equity contribution from parent		—			164,256			156,655			7,601			(328,512	)		—
Proceeds from exercise of stock options and employee stock purchase plan		24,233			—			—			—			—			24,233
Excess tax benefits from stock-based compensation		5,532			—			—			—			—			5,532
Payment of debt financing costs		(1,463	)		—			(37	)		(55	)		—			(1,555	)
Cash Flows from Financing Activities-Continuing Operations		65,966			(138,156	)		(29,728	)		(267	)		(26,101	)		(128,286	)
Cash Flows from Financing Activities-Discontinued Operations		—			—			—			(1,406	)		—			(1,406	)
Cash Flows from Financing Activities		65,966			(138,156	)		(29,728	)		(1,673	)		(26,101	)		(129,692	)
Effect of exchange rates on cash and cash equivalents		—			—			928			4,205			—			5,133
Increase (Decrease) in cash and cash equivalents		—			171,952			(13,163	)		9,497			—			168,286
Cash and cash equivalents, beginning of period		—			210,636			17,069			50,665			—			278,370
Cash and cash equivalents, end of period	$	—		$	382,588		$	3,906		$	60,162		$	—		$	446,656

115

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

5. Selected Consolidated Financial Statements of Parent, Guarantors, Canada Company and Non-Guarantors (Continued)

	Year Ended December 31, 2010
	Parent			Guarantors			Canada Company			Non- Guarantors			Eliminations			Consolidated
Cash Flows from Operating Activities:
Cash Flows from Operating Activities-Continuing Operations	$	(180,588	)	$	578,159		$	56,113		$	149,545		$	—		$	603,229
Cash Flows from Operating Activities-Discontinued Operations		—			19,347			—			2,564			—			21,911
Cash Flows from Operating Activities		(180,588	)		597,506			56,113			152,109			—			625,140
Cash Flows from Investing Activities:
Capital expenditures		—			(137,937	)		(16,593	)		(104,319	)		—			(258,849	)
Cash paid for acquisitions, net of cash acquired		—			(1,970	)		(3,705	)		(8,166	)		—			(13,841	)
Intercompany loans to subsidiaries		577,316			34,465			—			—			(611,781	)		—
Investment in subsidiaries		(10,258	)		(35,124	)		—			—			45,382			—
Investment in restricted cash		(35,102	)		—			—			—			—			(35,102	)
Additions to customer relationship and acquisition costs		—			(9,332	)		(594	)		(3,276	)		—			(13,202	)
Proceeds from sales of property and equipment and other, net		—			5,867			93			16,576			—			22,536
Cash Flows from Investing Activities-Continuing Operations		531,956			(144,031	)		(20,799	)		(99,185	)		(566,399	)		(298,458	)
Cash Flows from Investing Activities-Discontinued Operations		(1,796	)		(129,972	)		—			(6,036	)		3,592			(134,212	)
Cash Flows from Investing Activities		530,160			(274,003	)		(20,799	)		(105,221	)		(562,807	)		(432,670	)
Cash Flows from Financing Activities:
Repayment of revolving credit and term loan facilities and other debt		(4,100	)		(24,226	)		(2,504	)		(71,054	)		—			(101,884	)
Proceeds from revolving credit and term loan facilities and other debt		—			—			—			53,567			—			53,567
Early retirement of senior subordinated notes		(202,584	)		—			—			—			—			(202,584	)
Debt financing (repayment to) and equity contribution from (distribution to) noncontrolling interests, net		—			—			—			169			—			169
Intercompany loans from parent		—			(572,335	)		122			(39,568	)		611,781			—
Equity contribution from parent		—			10,258			—			35,124			(45,382	)		—
Stock repurchases		(111,563	)		—			—			—			—			(111,563	)
Parent cash dividends		(37,893	)		—			—			—			—			(37,893	)
Proceeds from exercise of stock options and employee stock purchase plan		18,225			—			—			—			—			18,225
Excess tax benefits from stock-based compensation		2,252			—			—			—			—			2,252
Cash Flows from Financing Activities-Continuing Operations		(335,663	)		(586,303	)		(2,382	)		(21,762	)		566,399			(379,711	)
Cash Flows from Financing Activities-Discontinued Operations		—			1,796			—			273			(3,592	)		(1,523	)
Cash Flows from Financing Activities		(335,663	)		(584,507	)		(2,382	)		(21,489	)		562,807			(381,234	)
Effect of exchange rates on cash and cash equivalents		—			—			814			(13	)		—			801
Increase (Decrease) in cash and cash equivalents		13,909			(261,004	)		33,746			25,386			—			(187,963	)
Cash and cash equivalents, beginning of period		—			382,588			3,906			60,162			—			446,656
Cash and cash equivalents, end of period	$	13,909		$	121,584		$	37,652		$	85,548		$	—		$	258,693

116

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

5. Selected Consolidated Financial Statements of Parent, Guarantors, Canada Company and Non-Guarantors (Continued)

	Year Ended December 31, 2011
	Parent			Guarantors			Canada Company			Non- Guarantors			Eliminations			Consolidated
Cash Flows from Operating Activities:
Cash Flows from Operating Activities-Continuing Operations	$	(162,478	)	$	698,033		$	45,232		$	82,727		$	—		$	663,514
Cash Flows from Operating Activities-Discontinued Operations		—			(47,166	)		—			(910	)		—			(48,076	)
Cash Flows from Operating Activities		(162,478	)		650,867			45,232			81,817			—			615,438
Cash Flows from Investing Activities:
Capital expenditures		—			(114,768	)		(14,155	)		(80,232	)		—			(209,155	)
Cash paid for acquisitions, net of cash acquired		—			(5,378	)		(58	)		(69,810	)		—			(75,246	)
Intercompany loans to subsidiaries		1,469,788			(83,385	)		—			—			(1,386,403	)		—
Investment in subsidiaries		(12,595	)		(12,595	)		—			—			25,190			—
Investment in restricted cash		(5	)		—			—			—			—			(5	)
Additions to customer relationship and acquisition costs		—			(15,700	)		(462	)		(5,541	)		—			(21,703	)
Investment in joint ventures		—			—			—			(335	)		—			(335	)
Proceeds from sales of property and equipment and other, net		—			363			66			3,802			—			4,231
Cash Flows from Investing Activities-Continuing Operations		1,457,188			(231,463	)		(14,609	)		(152,116	)		(1,361,213	)		(302,213	)
Cash Flows from Investing Activities-Discontinued Operations		—			371,365			—			9,356						380,721
Cash Flows from Investing Activities		1,457,188			139,902			(14,609	)		(142,760	)		(1,361,213	)		78,508
Cash Flows from Financing Activities:
Repayment of revolving credit and term loan facilities and other debt		(396,200	)		(1,458,628	)		(90,752	)		(71,594	)		—			(2,017,174	)
Proceeds from revolving credit and term loan facilities and other debt		—			2,014,500			89,838			66,641			—			2,170,979
Early retirement of senior subordinated notes		(231,255	)		—			—			—			—			(231,255	)
Net proceeds from sale of senior subordinated notes		394,000			—			—			—			—			394,000
Debt financing (repayment to) and equity contribution from (distribution to) noncontrolling interests, net		—			—			—			698			—			698
Intercompany loans from parent		—			(1,461,888	)		5,429			70,056			1,386,403			—
Equity contribution from parent		—			12,595			—			12,595			(25,190	)		—
Stock repurchases		(984,953	)		—			—			—			—			(984,953	)
Parent cash dividends		(172,616	)		—			—			—			—			(172,616	)
Proceeds from exercise of stock options and employee stock purchase plan		85,742			—			—			—			—			85,742
Excess tax benefits from stock-based compensation		919			—			—			—			—			919
Payment of debt financing costs		(828	)		(8,182	)		—			—			—			(9,010	)
Cash Flows from Financing Activities-Continuing Operations		(1,305,191	)		(901,603	)		4,515			78,396			1,361,213			(762,670	)
Cash Flows from Financing Activities-Discontinued Operations		—			—			—			(1,138	)					(1,138	)
Cash Flows from Financing Activities		(1,305,191	)		(901,603	)		4,515			77,258			1,361,213			(763,808	)
Effect of exchange rates on cash and cash equivalents		—			—			(3,883	)		(5,103	)		—			(8,986	)
Increase (Decrease) in cash and cash equivalents		(10,481	)		(110,834	)		31,255			11,212			—			(78,848	)
Cash and cash equivalents, beginning of period		13,909			121,584			37,652			85,548			—			258,693
Cash and cash equivalents, end of period	$	3,428		$	10,750		$	68,907		$	96,760		$	—		$	179,845

117

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

6. Acquisitions

        We account for acquisitions using the acquisition method of accounting, and, accordingly, the results of operations for each acquisition have been included in our consolidated results from their respective acquisition dates. Cash consideration for our various acquisitions was primarily provided through borrowings under our credit facilities and cash equivalents on-hand. We completed no acquisitions during 2009. Included in cash paid for acquisitions in the consolidated statement of cash flows for the year ended December 31, 2009 is contingent and other payments of $1,518 related to acquisitions made in prior years. The unaudited pro forma results of operations for the current and prior periods are not presented due to the insignificant impact of the 2010 and 2011 acquisitions on our consolidated results of operations. Noteworthy acquisitions are as follows:

        In May 2010 we acquired the remaining 87% interest of our joint venture in Greece (Safe doc S.A.) in a stock transaction for a cash purchase price of approximately $4,700, and we now control 100% of our Greek operations, which provide storage and records management services. The carrying value of the 13% interest that we had previously acquired and accounted for under the equity method of accounting amounted to approximately $416 and the fair value of such interest on the date of acquisition was approximately $473 and resulted in a gain being recorded on the date of the transaction to other (income) expense, net of approximately $57 during the second quarter of 2010.

        In January 2011, we acquired the remaining 80% interest of our joint venture in Poland (Iron Mountain Poland Holdings Limited) in a stock transaction for an estimated purchase price of approximately $80,000, including an initial cash purchase price of $35,000. As a result, we now own 100% of our Polish operations, which provide storage and records management services. The terms of the purchase and sale agreement also required a second payment based upon the audited financial results of the joint venture. This payment of $42,259 was based upon a formula defined in the purchase and sale agreement and was paid in the second quarter of 2011. Additionally, the purchase and sale agreement provides for an escrow hold back of $400 and the payment of up to a maximum of $2,500 of contingent consideration to be paid in July 2012 based upon the satisfaction of certain performance criteria. The carrying value of the 20% interest that we previously held and accounted for under the equity method of accounting amounted to approximately $5,774, and the fair value of such interest on the date of the acquisition of the additional 80% interest was approximately $11,694 and resulted in a gain being recorded to other (income) expense, net of approximately $5,920 in the year ended December 31, 2011. The fair value of our previously held equity interest was derived by reducing the total estimated consideration for the 80% equity interest purchased by 40%, which represents management's estimate of the control premium paid, in order to derive the fair value of $11,694 for the 20% noncontrolling equity interest which we previously held. We determined that a 40% control premium was appropriate after considering the size and location of the business acquired, the potential future profits expected to be generated by the Polish entity and publicly available market data. One of the members of our board of directors and several of his family members hold an indirect equity interest in one of the stockholders that received proceeds in connection with this transaction. As a result of this equity interest, such board member, together with several of his family members, received approximately 24% of the purchase price that we paid in connection with this transaction and will receive the same percentage of any future contingent consideration.

118

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

6. Acquisitions (Continued)

        A summary of the cumulative consideration paid and the allocation of the purchase price of all of the acquisitions in each respective year is as follows:

	2010			2011
Cash Paid (gross of cash acquired)	$	10,542	(1)	$	80,439	(1)
Contingent Consideration		—			2,900
Fair Value of Previously Held Equity Interest		473			11,694
Total Consideration		11,015			95,033
Fair Value of Identifiable Assets Acquired:
Cash, Accounts Receivable, Prepaid Expenses,
Deferred Income Taxes and Other		1,615			7,918
Property, Plant and Equipment(2)		2,711			6,002
Customer Relationship Assets(3)		5,189			59,100
Other Assets		—			653
Liabilities Assumed(4)		(3,840	)		(15,245	)
Noncontrolling Interests		(390	)		—
Total Fair Value of Identifiable Net Assets Acquired		5,285			58,428
Recorded Goodwill	$	5,730		$	36,605

(1)

Included in cash paid for acquisitions in the consolidated statements of cash flows for the years ended December 31, 2010 and 2011 are contingent and other payments of $3,428 and $132, respectively, related to acquisitions made in previous years.

(2)

Consists primarily of racking, leasehold improvements and computer hardware and software.

(3)

The weighted average lives of customer relationship assets associated with acquisitions in 2010 and 2011 was 10 years and 20 years, respectively.

(4)

Consists primarily of accounts payable, accrued expenses, notes payable, deferred revenue and deferred income taxes.

        In connection with our acquisition in India in May 2006, we entered into a stockholder agreement. The agreement contains a put provision that would allow the noncontrolling interest holder to sell the remaining 49.9% equity interest to us beginning on the third anniversary of this agreement for the greater of fair market value or approximately 84,835 Rupees (approximately $1,563).

119

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

7. Income Taxes

        The significant components of the deferred tax assets and deferred tax liabilities are presented below:

	December 31,
	2010			2011
Deferred Tax Assets:
Accrued liabilities	$	42,360		$	53,983
Deferred rent		23,253			21,889
Net operating loss carryforwards		52,099			58,113
Foreign tax credits		60,841			56,599
Valuation Allowance		(72,229	)		(72,239	)
Other		47,779			44,168
		154,103			162,513
Deferred Tax Liabilities:
Other assets, principally due to differences in amortization		(262,801	)		(281,060	)
Plant and equipment, principally due to differences in depreciation		(339,541	)		(345,576	)
		(602,342	)		(626,636	)
Net deferred tax liability	$	(448,239	)	$	(464,123	)

        The current and noncurrent deferred tax assets (liabilities) are presented below:

	December 31,
	2010			2011
Deferred tax assets	$	49,342		$	54,383
Deferred tax liabilities		(5,117	)		(11,148	)
Current deferred tax assets, net	$	44,225		$	43,235
Deferred tax assets	$	104,761		$	108,130
Deferred tax liabilities		(597,225	)		(615,488	)
Noncurrent deferred tax liabilities, net	$	(492,464	)	$	(507,358	)

        We have federal net operating loss carryforwards which begin to expire in 2020 through 2025, of $28,183 ($9,864, tax effected) at December 31, 2011 to reduce future federal taxable income. We have an asset for state net operating losses of $7,915 (net of federal tax benefit), which begins to expire in 2012 through 2025, subject to a valuation allowance of approximately 99%. We have assets for foreign net operating losses of $40,334, with various expiration dates, subject to a valuation allowance of approximately 69%. We also have foreign tax credits of $56,599, which begin to expire in 2014 through 2019, subject to a valuation allowance of approximately 65%. U.S. legislative changes in 2010 reduced the expected utilization of foreign tax credits which resulted in the requirement for a valuation allowance.

120

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

7. Income Taxes (Continued)

        Rollforward of valuation allowance is as follows:

Year Ended December 31,	Balance at Beginning of the Year		Charged (Credited) to Expense		Other Additions		Other Deductions			Balance at End of the Year
2009	$	36,392	$	1,416	$	3,158	$	(7,040	)	$	33,926
2010		33,926		39,545		—		(1,242	)		72,229
2011		72,229		9,844		—		(9,834	)		72,239

        We receive a tax deduction upon the exercise of non-qualified stock options or upon the disqualifying disposition by employees of incentive stock options and certain shares acquired under our employee stock purchase plan for the difference between the exercise price and the market price of the underlying common stock on the date of exercise or disqualifying disposition. The tax benefit for non-qualified stock options is included in the consolidated financial statements in the period in which compensation expense is recorded. The tax benefit associated with compensation expense recorded in the consolidated financial statements related to incentive stock options is recorded in the period the disqualifying disposition occurs. All tax benefits for awards issued prior to January 1, 2003 and incremental tax benefits in excess of compensation expense recorded in the consolidated financial statements are credited directly to equity and amounted to $5,532, $2,252 and $919 for the years ended December 31, 2009, 2010 and 2011, respectively.

        We have not recorded deferred taxes on book over tax outside basis differences related to certain foreign subsidiaries because such basis differences are not expected to reverse in the foreseeable future and we intend to reinvest indefinitely outside the U.S. These basis differences arose primarily through the undistributed book earnings of our foreign subsidiaries. The basis differences could be reversed through a sale of the subsidiaries, the receipt of dividends from subsidiaries and certain other events or actions on our part, each of which would result in an increase in our provision for income taxes. It is not practicable to calculate the amount of such basis differences.

        The components of income (loss) from continuing operations before provision (benefit) for income taxes are:

	Year Ended December 31,
	2009		2010		2011
U.S.	$	224,599	$	272,806	$	313,530
Canada		22,060		41,474		48,327
Foreign		98,620		19,942		(8,957	)
	$	345,279	$	334,222	$	352,900

121

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

7. Income Taxes (Continued)

        The provision (benefit) for income taxes consists of the following components:

	Year Ended December 31,
	2009		2010			2011
Federal—current	$	53,504	$	76,992		$	47,523
Federal—deferred		23,106		41,825			25,708
State—current		17,968		32,475			23,828
State—deferred		6,476		(851	)		(1,093	)
Foreign—current		11,955		20,350			31,748
Foreign—deferred		753		(3,308	)		(21,226	)
	$	113,762	$	167,483		$	106,488

        A reconciliation of total income tax expense and the amount computed by applying the federal income tax rate of 35% to income from continuing operations before provision (benefit) for income taxes for the years ended December 31, 2009, 2010 and 2011, respectively, is as follows:

	Year Ended December 31,
	2009			2010			2011
Computed "expected" tax provision	$	120,848		$	116,978		$	123,515
Changes in income taxes resulting from:
State taxes (net of federal tax benefit)		15,451			17,163			16,301
Increase in valuation allowance (net operating losses)		1,416			(2	)		12,601
Increase (Decrease) in valuation allowance (foreign tax credits)		—			39,547			(2,757	)
Impairment of goodwill and divestitures		—			29,772			10,254
Reserve reversal and audit settlements		—			(41,753	)		(32,989	)
Foreign tax rate differential		(25,442	)		(7,828	)		(34,867	)
United Kingdom thin cap, Subpart F income and foreign restructuring		4,194			8,247			5,663
Other, net		(2,705	)		5,359			8,767
	$	113,762		$	167,483		$	106,488

        Our effective tax rates for the years ended December 31, 2009, 2010 and 2011 were 32.9%, 50.1% and 30.2%, respectively. The primary reconciling items between the federal statutory rate of 35% and our overall effective tax rate for the year ended December 31, 2011 was the recognition of certain previously unrecognized tax benefits related to tax positions of prior years, expirations of statute of limitation periods and settlements with tax authorities in various jurisdictions and differences in the rates of tax at which our foreign earnings are subject, including foreign exchange gains and losses in different jurisdictions with different tax rates. This benefit was partially offset by state income taxes (net of federal benefit). Additionally, to a lesser extent, a goodwill impairment charge included in income from continuing operations as a component of intangible impairments in our consolidated statements of operations, of which a majority was non-deductible for tax purposes, is a reconciling item that impacts our effective tax rate. The primary reconciling item between the federal statutory rate of

122

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

7. Income Taxes (Continued)

35% and our overall effective tax rate for the year ended December 31, 2010 is a goodwill impairment charge included in income from continuing operations as a component of intangible impairments in our consolidated statements of operations, of which a majority was non-deductible for tax purposes. The negative impact of U.S. legislative changes reducing the expected utilization of foreign tax credits was offset by the recognition of certain previously unrecognized tax benefits due to expirations of statute of limitation periods and settlements with tax authorities in various jurisdictions. Additionally, to a lesser extent, state income taxes (net of federal benefit) and differences in the rates of tax at which our foreign earnings are subject, including foreign exchange gains and losses in different jurisdictions with different tax rates, are also reconciling items and impact our effective tax rate. In 2009, we had significant unrealized foreign exchange gains and losses on intercompany loans and on debt and derivative instruments in different jurisdictions with different tax rates. For 2009, foreign currency gains were recorded in lower tax jurisdictions associated with the marking-to-market of intercompany loan positions while foreign currency losses were recorded in higher tax jurisdictions associated with the marking-to-market of debt and derivative instruments, which reduced the effective tax rate for the year ended December 31, 2009.

        The evaluation of an uncertain tax position is a two-step process. The first step is a recognition process whereby the company determines whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The second step is a measurement process whereby a tax position that meets the more likely than not recognition threshold is calculated to determine the amount of benefit to recognize in the financial statements. The tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement.

        We have elected to recognize interest and penalties associated with uncertain tax positions as a component of the provision (benefit) for income taxes in the accompanying consolidated statements of operations. We recorded $4,749, $(1,607) and $(8,477) for gross interest and penalties for the years ended December 31, 2009, 2010 and 2011, respectively.

        We had $11,610 and $2,819 accrued for the payment of interest and penalties as of December 31, 2010 and 2011, respectively.

        A summary of tax years that remain subject to examination by major tax jurisdictions is as follows:

Tax Year	Tax Jurisdiction
See Below	United States
2006 to present	Canada
2010 to present	United Kingdom

        The normal statute of limitations for U.S. federal tax purposes is three years from the date the tax return is filed. However, due to our net operating loss position, the U.S. government has the right to audit the amount of the net operating loss up to three years after we utilize the loss on our federal income tax return. We utilized losses from years beginning in 1996, 1998 and 1999 in our federal income tax returns for our 2008, 2009, and 2010 tax years, respectively. The normal statute of

123

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

7. Income Taxes (Continued)

limitations for state purposes is between three to five years. However, certain of our state statute of limitations remain open for periods longer than this when audits are in progress.

        We are subject to examination by various tax authorities in jurisdictions in which we have significant business operations. We regularly assess the likelihood of additional assessments by tax authorities and provide for these matters as appropriate. As of December 31, 2010 and 2011, we had $59,891 and $31,408, respectively, of reserves related to uncertain tax positions included in other long-term liabilities in the accompanying consolidated balance sheets. Although we believe our tax estimates are appropriate, the final determination of tax audits and any related litigation could result in favorable or unfavorable changes in our estimates.

        A reconciliation of unrecognized tax benefits is as follows:

Gross tax contingencies—December 31, 2008	$	84,566
Gross additions based on tax positions related to the current year		3,166
Gross additions for tax positions of prior years		5,693
Gross reductions for tax positions of prior years		(720	)
Lapses of statutes		(4,460	)
Settlements		(90	)
Gross tax contingencies—December 31, 2009	$	88,155
Gross additions based on tax positions related to the current year		6,575
Gross additions for tax positions of prior years		9,759
Gross reductions for tax positions of prior years		(3,349	)
Lapses of statutes		(33,001	)
Settlements		(8,248	)
Gross tax contingencies—December 31, 2010	$	59,891
Gross additions based on tax positions related to the current year		6,593
Gross additions for tax positions of prior years		6,437
Gross reductions for tax positions of prior years		(30,316	)
Lapses of statutes		(6,268	)
Settlements		(4,929	)
Gross tax contingencies—December 31, 2011	$	31,408

        The reversal of these reserves of $31,408 ($23,514 net of federal tax benefit) as of December 31, 2011 will be recorded as a reduction of our income tax provision if sustained. We believe that it is reasonably possible that an amount up to approximately $10,688 of our unrecognized tax positions may be recognized by the end of 2012 as a result of a lapse of statute of limitations or upon closing and settling significant audits in various worldwide jurisdictions.

124

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

8. Quarterly Results of Operations (Unaudited)

Quarter Ended	March 31			June 30			Sept. 30			Dec. 31
2010
Total revenues	$	718,996		$	718,536		$	725,649		$	729,168
Operating income (loss)		138,342			157,278			105,686			146,243
Income (loss) from continuing operations		32,355			49,252			27,202			57,930
Total income (loss) from discontinued operations		(7,378	)		(8,435	)		(178,930	)		(24,674	)
Net income (loss)		24,977			40,817			(151,728	)		33,256
Net income (loss) attributable to Iron Mountain Incorporated		24,704			40,357			(154,687	)		32,040(1)
Earnings (losses) per Share-Basic
Income (loss) per share from continuing operations		0.16			0.24			0.14			0.29
Total income (loss) per share from discontinued operations		(0.04	)		(0.04	)		(0.89	)		(0.12	)
Net income (loss) per share attributable to Iron Mountain Incorporated		0.12			0.20			(0.77	)		0.16
Earnings (losses) per Share-Diluted
Income (loss) per share from continuing operations		0.16			0.24			0.14			0.29
Total income (loss) per share from discontinued operations		(0.04	)		(0.04	)		(0.89	)		(0.12	)
Net income (loss) per share attributable to Iron Mountain Incorporated		0.12			0.20			(0.77	)		0.16
2011
Total revenues	$	746,009		$	758,551		$	768,306		$	741,837
Operating income (loss)		137,600			148,937			135,199			149,463
Income (loss) from continuing operations		81,176			67,460			50,394			47,382
Total income (loss) from discontinued operations		(6,557	)		185,587			(12,469	)		(13,381	)
Net income (loss)		74,619			253,047			37,925			34,001
Net income (loss) attributable to Iron Mountain Incorporated		73,460			252,684			37,338			32,056
Earnings (losses) per Share-Basic
Income (loss) per share from continuing operations		0.41			0.33			0.26			0.26
Total income (loss) per share from discontinued operations		(0.03	)		0.92			(0.06	)		(0.07	)
Net income (loss) per share attributable to Iron Mountain Incorporated		0.37			1.25			0.19			0.18
Earnings (losses) per Share-Diluted
Income (loss) per share from continuing operations		0.40			0.33			0.26			0.26
Total income (loss) per share from discontinued operations		(0.03	)		0.91			(0.06	)		(0.07	)
Net income (loss) per share attributable to Iron Mountain Incorporated		0.37			1.24			0.19			0.18

(1)

The change in net income (loss) attributable to Iron Mountain Incorporated in the fourth quarter of 2010 compared to the third quarter of 2010 is primarily related to the impact associated with the goodwill impairment charge of which $255,000 ($249,000, net of tax) was recorded in the third quarter of 2010 compared to $28,785 ($28,300, net of tax) recorded in the fourth quarter of 2010. See Note 14. Discrete tax benefits recorded in the third quarter compared to charges in the fourth quarter of 2010 related to unrealized foreign exchange gains and losses in different tax jurisdictions

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

8. Quarterly Results of Operations (Unaudited) (Continued)

at different tax rates also contributed to the change. Additionally, to a lesser extent, reduced operating income primarily related to increased selling, general and administrative expenses offset by reduced interest expense related to the retirement of a portion of our 7³/4% Notes due 2015 in the third quarter of 2010 also contributed to the change.

9. Segment Information

        As a result of the disposition of our Digital Business and New Zealand Business and our decision to sell the Italian Business as discussed in Note 14, we changed our reportable segments. The most significant of these changes is that the reportable segment previously referred to as the worldwide digital business is no longer reported separately in our management reporting as the operations associated with the Domain Name Product Line and the Digital Business are reported as discontinued operations. Also, the technology escrow services business, which we continue to own and operate and was previously reported in the former worldwide digital business segment, is now reported in the North American Business segment. Additionally, the International Business segment no longer includes the New Zealand Business and the Italian Business as these operations are reported as discontinued operations.

        Our operating segments and Corporate are as follows:

•

North American Business—information management services throughout the United States and Canada, including the storage of paper documents, as well as other media such as microfilm and microfiche, master audio and videotapes, film, X-rays and blueprints, including healthcare information services, vital records services, service and courier operations, and the collection, handling and disposal of sensitive documents for corporate customers ("Hard Copy"); the storage and rotation of backup computer media as part of corporate disaster recovery plans, including service and courier operations ("Data Protection"); information destruction services ("Destruction"); the scanning, imaging and document conversion services of active and inactive records ("Hybrid Services"); the storage, assembly, and detailed reporting of customer marketing literature and delivery to sales offices, trade shows and prospective customers' sites based on current and prospective customer orders ("Fulfillment") and technology escrow services that protect and manage source code.

•

Europe—information management services throughout Europe, including Hard Copy, Data Protection, Destruction (in the United Kingdom and Ireland) and Hybrid Services.

•

Latin America—information management services throughout Mexico, Brazil, Chile, Argentina and Peru, including Hard Copy, Data Protection, Destruction and Hybrid Services.

•

Asia Pacific—information management services throughout Australia, including Hard Copy, Data Protection, Destruction and Hybrid Services; and in certain cities in India, Singapore, Hong Kong-SAR and China, including Hard Copy and Data Protection.

•

Corporate—consists of costs related to executive and staff functions, including finance, human resources and information technology, which benefit the enterprise as a whole. These costs are primarily related to the general management of these functions on a corporate level and the

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

9. Segment Information (Continued)

design and development of programs, policies and procedures that are then implemented in the individual segments, with each segment bearing its own cost of implementation. Corporate also includes stock-based employee compensation expense associated with all Employee Stock-Based Awards.

        The Latin America, Asia Pacific and Europe operating segments have been aggregated given their similar economic characteristics, products, customers and processes and reported as one reportable segment, "International Business."

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

9. Segment Information (Continued)

        An analysis of our business segment information and reconciliation to the consolidated financial statements is as follows:

	North American Business		International Business		Corporate			Total Consolidated
2009
Total Revenues	$	2,124,964	$	649,420	$	—		$	2,774,384
Depreciation and Amortization		174,096		69,768		33,322			277,186
Depreciation		162,400		57,570		33,091			253,061
Amortization		11,696		12,198		231			24,125
Adjusted OIBDA		866,356		120,482		(164,259	)		822,579
Total Assets(1)		4,695,013		1,667,266		488,878			6,851,157
Expenditures for Segment Assets		160,784		110,624		28,768			300,176
Capital Expenditures		153,273		105,876		28,768			287,917
Cash Paid for Acquisitions, Net of Cash Acquired		256		1,262		—			1,518
Additions to Customer Relationship and Acquisition Costs		7,255		3,486		—			10,741
2010
Total Revenues		2,193,464		698,885		—			2,892,349
Depreciation and Amortization		185,483		81,932		36,790			304,205
Depreciation		172,713		69,480		36,567			278,760
Amortization		12,770		12,452		223			25,445
Adjusted OIBDA		969,505		130,969		(173,798	)		926,676
Total Assets(1)		4,370,465		1,641,251		404,677			6,416,393
Expenditures for Segment Assets		135,825		115,496		34,571			285,892
Capital Expenditures		120,162		104,116		34,571			258,849
Cash Paid for Acquisitions, Net of Cash Acquired		5,675		8,166		—			13,841
Additions to Customer Relationship and Acquisition Costs		9,988		3,214		—			13,202
2011
Total Revenues		2,229,143		785,560		—			3,014,703
Depreciation and Amortization		180,763		104,815		33,921			319,499
Depreciation		168,549		88,432		33,657			290,638
Amortization		12,214		16,383		264			28,861
Adjusted OIBDA		961,973		164,212		(191,273	)		934,912
Total Assets(1)		4,194,850		1,646,701		199,707			6,041,258
Expenditures for Segment Assets		139,079		152,064		14,961			306,104
Capital Expenditures		117,338		76,856		14,961			209,155
Cash Paid for Acquisitions, Net of Cash Acquired		5,436		69,810		—			75,246
Additions to Customer Relationship and Acquisition Costs		16,305		5,398		—			21,703

(1)

Excludes all intercompany receivables or payables and investment in subsidiary balances.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

9. Segment Information (Continued)

        The accounting policies of the reportable segments are the same as those described in Note 2. Adjusted OIBDA for each segment is defined as operating income before depreciation, amortization, intangible impairments and (gain) loss on disposal/write-down of property, plant and equipment, net which are directly attributable to the segment. Internally, we use Adjusted OIBDA as the basis for evaluating the performance of, and allocating resources to, our operating segments.

        A reconciliation of Adjusted OIBDA to income from continuing operations before provision (benefit) for income taxes on a consolidated basis is as follows:

	Years Ended December 31,
	2009			2010			2011
Adjusted OIBDA	$	822,579		$	926,676		$	934,912
Less: Depreciation and Amortization		277,186			304,205			319,499
Intangible Impairments (See Note 2.g. and Note 14)		—			85,909			46,500
Loss (Gain) on Disposal/Write-down of
Property, Plant and Equipment, Net		168			(10,987	)		(2,286	)
Interest Expense, Net		212,545			204,559			205,256
Other (Income) Expense, Net		(12,599	)		8,768			13,043
Income from Continuing Operations before Provision (Benefit) for Income Taxes	$	345,279		$	334,222		$	352,900

        Information as to our operations in different geographical areas is as follows:

	Years Ended December 31,
	2009		2010		2011
Revenues:
United States	$	1,925,424	$	1,958,820	$	1,984,805
United Kingdom		292,685		295,462		307,905
Canada		196,246		231,477		244,337
Other International		360,029		406,590		477,656
Total Revenues	$	2,774,384	$	2,892,349	$	3,014,703
Long-lived Assets:
United States	$	3,736,626	$	3,341,241	$	3,306,574
United Kingdom		617,141		552,309		529,239
Canada		425,838		448,485		434,517
Other International		855,804		861,896		856,478
Total Long-lived Assets	$	5,635,409	$	5,203,931	$	5,126,808

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

9. Segment Information (Continued)

        Information as to our revenues by product and service lines is as follows:

	Years Ended December 31,
	2009		2010		2011
Revenues:
Records Management(1)(2)	$	2,040,497	$	2,081,492	$	2,183,154
Data Protection & Recovery(1)(3)		483,909		531,580		522,632
Information Destruction(1)(4)		249,978		279,277		308,917
Total Revenues	$	2,774,384	$	2,892,349	$	3,014,703

(1)

Each of the service offerings within our product and service lines has a component of revenue that is storage related and a component that is service revenues, except the Information Destruction service offering, which does not have a storage component.

(2)

Includes Business Records Management, Compliant Records Management and Consulting Services, Hybrid Services, Fulfillment Services, Health Information Management Solutions, Film and Sound Archives and Energy Data Services.

(3)

Includes Data Protection & Recovery Services and Technology Escrow Services.

(4)

Includes Secure Shredding and Compliant Information Destruction.

10. Commitments and Contingencies

a.

Leases

        Most of our leased facilities are leased under various operating leases that typically have initial lease terms of five to ten years. A majority of these leases have renewal options with one or more five year options to extend and may have fixed or Consumer Price Index escalation clauses. We also lease equipment under operating leases (primarily computers) which have an average lease life of three years. Vehicles and office equipment are also leased and have remaining lease lives ranging from one to seven years. Total rent expense (including common area maintenance charges) under all of our operating leases was $240,944, $238,480 and $242,954 for the years ended December 31, 2009, 2010 and 2011, respectively. Included in total rent expense was sublease income of $4,126, $2,721 and $2,974 for the years ended December 31, 2009, 2010 and 2011, respectively.

        Estimated minimum future lease payments (excluding common area maintenance charges) include payments for certain renewal periods at our option because failure to renew results in an economic

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

10. Commitments and Contingencies (Continued)

disincentive due to significant capital expenditure costs (e.g., racking), thereby making it reasonably assured that we will renew the lease. Such payments in effect at December 31, are as follows:

	Operating Lease Payment(1)		Sublease Income		Capital Leases
2012	$	219,951	$	2,317	$	51,490
2013		209,417		1,932		48,787
2014		197,258		1,648		31,837
2015		187,507		1,629		22,655
2016		180,753		1,145		17,450
Thereafter		1,714,261		1,934		138,661
Total minimum lease payments	$	2,709,147	$	10,605		310,880
Less amounts representing interest						(103,580	)
Present value of capital lease obligations					$	207,300

(1)

Includes $2,593, $1,975, $1,758, $1,752, $1,692 and $8,232 in 2012, 2013, 2014, 2015, 2016 and thereafter, respectively, related to our Italian Business (a total of $18,002).

        In addition, we have certain contractual obligations related to purchase commitments which require minimum payments of $31,852, $11,546, $8,800, $982, $343 and $232 in 2012, 2013, 2014, 2015, 2016 and thereafter, respectively.

b.

Self-Insured Liabilities

        We are self-insured up to certain limits for costs associated with workers' compensation claims, vehicle accidents, property and general business liabilities, and benefits paid under employee healthcare and short-term disability programs. At December 31, 2010 and 2011 there were $43,901 and $39,358, respectively, of self-insurance accruals reflected in accrued expenses of our consolidated balance sheets. The measurement of these costs requires the consideration of historical cost experience and judgments about the present and expected levels of cost per claim. We account for these costs primarily through actuarial methods, which develop estimates of the undiscounted liability for claims incurred, including those claims incurred but not reported. These methods provide estimates of future ultimate claim costs based on claims incurred as of the balance sheet date.

c.

Litigation

        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 estimable. We record legal costs associated with loss contingencies as expenses in the period in which they are incurred. The matters described below represent our significant loss contingencies. We have evaluated each matter and, if both probable and estimable, accrued an amount that represents our

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

10. Commitments and Contingencies (Continued)

estimate of any probable loss associated with such matter. In addition, we have estimated a reasonably possible range for all loss contingencies including those described below. We believe it is reasonably possible that we could incur aggregate losses in addition to amounts currently accrued for all matters up to an additional $51,300 over the next several years.

d.

London Fire

        In July 2006, we experienced a significant fire in a leased records and information management facility in London, England, that resulted in the complete destruction of the facility and its contents. The London Fire Brigade ("LFB") issued a report in which it concluded that the fire resulted either from human agency, i.e., arson, or an unidentified ignition device or source, and its report to the Home Office concluded that the fire resulted from a deliberate act. The LFB also concluded that the installed sprinkler system failed to control the fire because the primary electric fire pump was disabled prior to the fire and the standby diesel fire pump was disabled in the early stages of the fire by third-party contractors. We have received notices of claims from customers or their subrogated insurance carriers under various theories of liability arising out of lost data and/or records as a result of the fire. Certain of those claims have resulted in litigation in courts in the United Kingdom. We deny any liability in respect of the London fire, and we have referred these claims to our excess warehouse legal liability insurer, which has been defending them to date under a reservation of rights. Certain of the claims have been settled for nominal amounts, typically one to two British pounds sterling per carton, as specified in the contracts, which amounts have been or will be reimbursed to us from our primary property insurer. We believe we carry adequate property and liability insurance related to this incident.

e.

Chile Earthquake

        As a result of the February 27, 2010 earthquake in Chile, we experienced damage to certain of our 13 owned and leased records management facilities in that region. None of our facilities were destroyed by fire or significantly impacted by water damage. However, the structural integrity of five buildings was compromised, and some of the racking included in certain buildings was damaged or destroyed. Some customer materials were impacted by this event. Revenues from Chile represent less than 1% of our consolidated enterprise revenues. We believe we carry adequate property and liability insurance and do not expect that this event will have a material impact on our consolidated results of operations or financial condition. We received cumulative payments of $33,800 from our insurance carriers of which $27,000 was received in 2010 and $6,800 was received in 2011. Such amount represents final settlements of claims filed with our insurance carriers. Cash from our insurance settlements was used to fund capital expenditures and for general working capital needs. Our policy related to business interruption insurance recoveries is to record gains within other (income) expense, net in our consolidated statement of operations and proceeds received within cash flows from operating activities in our consolidated statement of cash flows. Such amounts are recorded in the period the cash is received. We recorded approximately $100 within other income (expense), net in our consolidated statement of operations associated with business interruption insurance recoveries in the year ended December 31, 2011. We have recorded gains on the disposal/write-down of property, plant and equipment, net in our statement of operations of approximately $10,200 for the year ended December 31, 2010. We have reflected approximately $14,800 of the cash proceeds received from our insurers in the year ended December 31, 2010 as proceeds from sales of property and equipment, net in our statement of cash

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

10. Commitments and Contingencies (Continued)

flows. Our policy with respect to involuntary conversion of property, plant and equipment is to record any gain or loss within (gain) loss on disposal/write-down of property, plant and equipment, net within operating income in our consolidated statement of operations and proceeds received within cash flows from investing activities within our consolidated statement of cash flows. Losses are recorded when incurred and gains are recorded in the period when the cash received exceeds the carrying value of the related property, plant and equipment.

f.

Brazilian Litigation

        In September 2010, Iron Mountain do Brasil Ltda., our Brazilian operating subsidiary ("IMB"), was sued in Curitiba, Brazil in the 11th Lower Labor Claim Court. The plaintiff in the six related lawsuits, Sindicato dos Trabalhadores em Empresas de Serviços Contábeis, Assessoramento, Perícias, Informações, Pesquisas, e em Empresas Prestadoras de Serviços do Estado do Paraná (Union of Workers in Business Services Accounting, Advice, Expertise, Information, Research and Services Companies in the State of Parana), a labor union in Brazil, purported to represent 2,008 individuals who provided services for IMB. The complaint alleged that these individuals were incorrectly classified as non-employees by IMB and requested unspecified monetary damages, including attorneys' fees, unpaid wages, unpaid benefits and certain penalties. In August 2011, the court approved a settlement between the parties pursuant to which we will pay $2 for each of 531 individuals, subject to each individual's acceptance thereof. If all 531 individuals accept the settlement, it would result in payment by the Company of approximately $1,100. The claims of the remaining 1,477 individuals in the lawsuits not receiving proceeds in the settlement were dismissed by the court.

g.

Patent Infringement Lawsuit

        In August 2010, we were named as a defendant in a patent infringement suit filed in the U.S. District Court for the Eastern District of Texas by Oasis Research, LLC. The plaintiff alleges that the technology found in our Connected and LiveVault products infringed certain U.S. patents owned by the plaintiff and seeks an unspecified amount of damages. A final pre-trial conference has been scheduled for October 12, 2012. We expect the court to establish a trial date during the pre-trial conference. As part of the sale of our Digital Business discussed at Note 14, our Connected and LiveVault products were sold to Autonomy and Autonomy has assumed this obligation and the defense of this litigation and has agreed to indemnify us against any losses.

h.

Government Contract Billing Matter

        Since October, 2001, we have provided services to the U.S. Government under several General Services Administration ("GSA") multiple award schedule contracts (the "Schedules"). The earliest of the Schedules was renewed with certain modifications to its terms in October 2006. The Schedules contain a price reductions clause ("Price Reductions Clause") that requires us to offer to reduce the prices billed to the Government under the Schedules to correspond to the prices billed to certain benchmark commercial customers. Over the five years and three months ended December 31, 2011 we billed approximately $42,000 under the Schedules. In 2011, we initiated an internal review covering the contract period commencing in October 2006 and we discovered potential non-compliance with the Price Reductions Clause. We voluntarily disclosed the potential non-compliance to the GSA and its Office of Inspector General ("OIG") in June 2011. See Note 2.y.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

10. Commitments and Contingencies (Continued)

        We continue to review this matter and will provide the GSA and OIG with information regarding our pricing practices and proposed pricing adjustment amount to be refunded. The GSA and OIG, however, may not agree with our determination of the refund amount and may request additional pricing adjustments, refunds, civil penalties, up to treble damages and/or interest related to our Schedules.

i.

State of Massachusetts Notices of Intention to Assess

        We are currently under audit by the state of Massachusetts for the 2004 through 2008 tax years. We have not received any final assessments to date. However, we have received notices of intention to assess for the 2004 to 2006 tax years in the amount of $7,867, including tax and penalties (but excluding interest). Currently this audit is on appeal with the Massachusetts Department of Revenue. The final outcome of this audit may result in an assessment of income tax, which is a component of the income tax provision, or an assessment of net worth tax, which is an operating charge. We intend to defend this matter vigorously.

j.

Italy Fire

        We experienced a fire at a facility we lease in Aprilla, Italy on November 4, 2011. All employees were evacuated safely and the cause of the fire is currently being investigated. The facility primarily stored archival and inactive business records for local area businesses.

        The leased facility, constructed in 2004, is one of approximately 1,000 facilities in our global portfolio and one of 10 facilities located in Italy. Despite quick response by local fire authorities, damage to the building was extensive and the building appears to be a total loss. We believe we carry adequate insurance and are in the process of assessing the impact of the fire but do not expect that this event will have a material impact to our consolidated financial condition, results of operations and cash flows.

        Our policy related to business interruption insurance recoveries is to record gains within other (income) expense, net in our consolidated statement of operations and proceeds received within cash flows from operating activities in our consolidated statement of cash flows. Such amounts are recorded in the period the cash is received. Our policy with respect to involuntary conversion of property, plant and equipment is to record any gain or loss within (gain) loss on disposal/write-down of property, plant and equipment, net within operating income in our consolidated statement of operations and proceeds received within cash flows from investing activities within our consolidated statement of cash flows. Losses are recorded when incurred and gains are recorded in the period when the cash received exceeds the carrying value of the related property, plant and equipment.

11. Related Party Transactions

        We lease space to an affiliated company, Schooner Capital LLC ("Schooner"), for its corporate headquarters located in Boston, Massachusetts. For the years ended December 31, 2009, 2010 and 2011, Schooner paid rent to us totaling $177, $198 and $188, respectively. One of the members of our board of directors and several of his family members hold an indirect equity interest in one of the stockholders that received proceeds in connection with the acquisition of our joint venture in Poland. As a result of this equity interest, such board member, together with several of his family members,

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IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

11. Related Party Transactions (Continued)

received approximately 24% of the purchase price that we paid in connection with this transaction and will receive the same percentage of any future contingent consideration. See Note 6.

12. 401(k) Plans

        We have a defined contribution plan, which generally covers all non-union U.S. employees meeting certain service requirements. Eligible employees may elect to defer from 1% to 25% of compensation per pay period up to the amount allowed by the Internal Revenue Code. In addition, IME operates a defined contribution plan, which is similar to the U.S.'s 401(k) Plan. We make matching contributions based on the amount of an employee's contribution in accordance with the plan documents. We have expensed $11,508, $14,282 and $18,133 for the years ended December 31, 2009, 2010 and 2011, respectively.

13. Stockholders' Equity Matters

        Our board of directors has authorized up to $1,200,000 in repurchases of our common stock. All purchases are subject to stock price, market conditions, corporate and legal requirements and other factors. As of December 31, 2011, we had a remaining amount available for repurchase under our share repurchase program of $100,701, which represents approximately 2% in the aggregate of our outstanding common stock based on the closing stock price on such date.

        In February 2010, our board of directors adopted a dividend policy under which we intend to pay quarterly cash dividends on our common stock. Declaration and payment of future quarterly dividends is at the discretion of our board of directors. In 2010 and 2011, our board of directors declared the following dividends:

Declaration Date	Dividend Per Share		Record Date	Total Amount		Payment Date
March 25, 2010	$	0.0625	March 25, 2010	$	12,720	April 15, 2010
June 4, 2010		0.0625	June 25, 2010		12,641	July 15, 2010
September 15, 2010		0.0625	September 28, 2010		12,532	October 15, 2010
December 10, 2010		0.1875	December 27, 2010		37,514	January 14, 2011
March 11, 2011		0.1875	March 25, 2011		37,601	April 15, 2011
June 10, 2011		0.2500	June 24, 2011		50,694	July 15, 2011
September 8, 2011		0.2500	September 23, 2011		46,877	October 14, 2011
December 1, 2011		0.2500	December 23, 2011		43,180	January 13, 2012

        On March 23, 2011, our board of directors declared a dividend of one preferred stock purchase right ("Right") for each outstanding share of our common stock held by stockholders of record at the close of business on April 1, 2011. Each Right, once exercisable, entitles the registered holder to purchase one one-thousandth of a share of our preferred stock, designated as Series A Junior Participating Preferred Stock, par value $0.01 per share, at a price of $120.00 per one one-thousandth of a share, subject to certain adjustments. No shares of Series A Junior Participating Preferred Stock are outstanding as of December 31, 2011. The Rights will expire upon the close of business on the earliest to occur of: (i) March 22, 2013, (ii) the date on which the Rights are redeemed or exchanged

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

13. Stockholders' Equity Matters (Continued)

by us in accordance with the rights agreement governing the Rights and (iii) the date of our 2012 annual meeting of stockholders if requisite stockholder approval of the rights agreement is not obtained at such meeting.

14. Discontinued Operations

Digital Operations

        In August 2010, we divested the Domain Name Product Line for approximately $11,400 in cash at closing which is included in cash flows from operating activities—discontinued operations. This represented the sale of assets (primarily customer contracts) of a product line. Total revenues of this product line for the year ended December 31, 2009 and the seven months ended July 31, 2010 were approximately $6,300 and $3,500, respectively. A gain in the amount of approximately $6,900 ($2,834, net of tax) was recorded during the quarter ended September 30, 2010 and is included in loss from discontinued operations, net of tax.

        During the quarter ended September 30, 2010, we concluded that events occurred and circumstances changed in our former worldwide digital business reporting unit that required us to conduct an impairment review. The primary factors contributing to our conclusion that we had a triggering event and a requirement to reassess our former worldwide digital business reporting unit goodwill for impairment included: (1) a reduction in forecasted revenue and operating results due to continued pressure on key parts of the business as a result of the weak economy; (2) reduced revenue and profit outlook for our eDiscovery service due to smaller average matter size and lower pricing; (3) a decision to discontinue certain software development projects; and (4) the sale of the Domain Name Product Line. As a result of the review, we recorded a provisional goodwill impairment charge associated with our former worldwide digital business reporting unit in the amount of $255,000 during the quarter ended September 30, 2010. We finalized the estimate in the fourth quarter of 2010, and we recorded an additional impairment of $28,785, for a total goodwill impairment charge of $283,785. For the year ended December 31, 2010, we allocated $85,909 of this charge to the retained technology escrow services business, based on a relative fair value basis, which charge continues to be included in our continuing results of operations as a component of intangible impairments in our consolidated statements of operations. As described in Note 9 to Notes to Consolidated Financial Statements, our technology escrow services business, which had been reported in our former worldwide digital business segment, is now reported as a component of our North American Business segment. In April 2011, we announced a comprehensive strategic plan, which included exploring strategic alternatives for our digital business, including a potential sale of the Digital Business.

136

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

14. Discontinued Operations (Continued)

        On June 2, 2011, IMI completed the sale of the Digital Business to Autonomy, pursuant to the Digital Sale Agreement. In the Digital Sale, Autonomy purchased (i) the shares of certain of IMI's subsidiaries through which IMI conducted the Digital Business and (ii) certain assets of IMI and its subsidiaries relating to our Digital Business. The Digital Sale qualified as discontinued operations because (a) the remaining direct gross cash inflows and outflows of the Digital Business by IMI post-close are not expected to be significant in relation to the direct gross cash inflows and outflows absent the Digital Sale and (b) there is no significant continuing involvement because IMI does not retain the ability to influence the operating and financial policies of the Digital Business. As a result, the financial position, operating results and cash flows of the Digital Business and the Domain Name Product Line, for all periods presented, including the gains on the sales, have been reported as discontinued operations for financial reporting purposes.

        Pursuant to the Digital Sale Agreement, IMI received approximately $395,400 in cash, consisting of the initial purchase price of $380,000 and a preliminary working capital adjustment of approximately $15,400, which remains subject to a customary post-closing adjustment based on the amount of working capital at closing. The purchase price for the Digital Sale will be increased on a dollar-for-dollar basis if the working capital balance at the time of closing exceeds the target amount of working capital as set forth in the Digital Sale Agreement and decreased on a dollar-for-dollar basis if such closing working capital balance is less than the target amount. We and Autonomy are in disagreement regarding the working capital adjustment in the Digital Sale Agreement. As a result, as contemplated by the Digital Sale Agreement, the matter is being referred to an independent third party accounting firm for determination of the appropriate adjustment amount. Transaction costs relating to the Digital Sale amounted to $7,387 ($774 of such costs were unpaid as of December 31, 2011). Additionally, $11,075 of inducements are payable to Autonomy and have been netted against the proceeds in calculating the gain on the Digital Sale ($6,000 of such amount was unpaid as of December 31, 2011). We used the net proceeds received from the Digital Sale to pay down amounts outstanding under our revolving credit facility. Also, a tax provision of $45,126 associated with the gain recorded on the Digital Sale was recorded for the year ended December 31, 2011. A gain on sale of discontinued operations in the amount of $243,861 ($198,735, net of tax) was recorded during the year ended December 31, 2011, as a result of the Digital Sale. Approximately $3,828 of cumulative translation adjustment associated with our Digital Business was reclassified from accumulated other comprehensive items, net and reduced the gain on the Digital Sale by the same amount.

137

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

14. Discontinued Operations (Continued)

        The table below summarizes certain results of operations of the Digital Business and the Domain Name Product Line:

	Years Ended December 31,
	2009			2010			2011(1)
Total Revenues	$	201,651		$	203,479		$	79,199
Loss Before Benefit for Income Taxes of Discontinued Operations	$	(14,959	)	$	(235,161	)	$	(31,094	)
Benefit for Income Taxes		(4,791	)		(19,682	)		(13,744	)
Loss from Discontinued Operations, Net of Tax	$	(10,168	)	$	(215,479	)	$	(17,350	)
Gain on Sale of Discontinued Operations	$	—		$	—		$	243,861
Provision for Income Taxes		—			—			45,126
Gain on Sale of Discontinued Operations, Net of Tax	$	—		$	—		$	198,735
Total (Loss) Income from Discontinued Operations
and Sale, Net of Tax	$	(10,168	)	$	(215,479	)	$	181,385

(1)

Includes the Digital Business results of operations through June 2, 2011, the date the Digital Sale was consummated.

        There have been no allocations of corporate general and administrative expenses to discontinued operations. In accordance with our policy, we have allocated corporate interest associated with all debt that is not specifically allocated to a particular component based on the proportion of the assets of the Digital Business and the Domain Name Product Line to our total consolidated assets at the applicable weighted average interest rate associated with such debt for such reporting period. Interest allocated to the Digital Business and the Domain Name Product Line and included in loss from discontinued operations amounted to $13,041, $14,336 and $2,396 for the years ended December 31, 2009, 2010 and 2011, respectively.

138

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

14. Discontinued Operations (Continued)

        The carrying amounts of the major classes of assets and liabilities of the Digital Business were as follows:

	December 31, 2010		June 2, 2011
Accounts receivable, net	$	41,418	$	43,893
Deferred income taxes		1,726		1,542
Prepaid expenses and other		6,585		6,533
Current assets of discontinued operations		49,729		51,968
Property, plant and equipment, net		39,539		37,882
Goodwill, net		35,699		35,699
Deferred income taxes		13,934		13,485
Other assets, net		45,889		41,146
Non-current assets of discontinued operations		135,061		128,212
Assets of discontinued operations	$	184,790	$	180,180
Accounts payable	$	15,848	$	9,665
Accrued expenses		8,879		7,824
Deferred revenue		27,638		31,755
Current liabilities of discontinued operations		52,365		49,244
Other long-term liabilities		1,009		1,027
Deferred income taxes		—		—
Non-current liabilities of discontinued operations		1,009		1,027
Liabilities of discontinued operations	$	53,374	$	50,271

        In connection with the Digital Sale, we entered into several other arrangements with Autonomy, including:

•

A reseller agreement with Autonomy that allows us to sell certain products and services of the Digital Business now owned by Autonomy and certain other Autonomy products and services (the "Products and Services") over a three year period beginning June 2, 2011. The reseller agreement provides for the payments to Autonomy of: (i) $3,500, which was paid on the closing of the Digital Sale; and (ii) $6,000 on June 2, 2012. Such amounts represent prepayments of amounts payable to Autonomy related to qualifying sales of Products and Services to new customers of the Digital Business and are non-refundable to the extent we do not achieve the requisite level of qualifying sales of Products and Services during the term of the reseller agreement.

•

A co-location agreement with Autonomy in which we will provide certain storage related services associated with certain data centers to Autonomy for a two year transitional period beginning June 2, 2011. Autonomy has the right to extend this period by two additional years upon six months notice prior to the end of the first two-year term.

139

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

14. Discontinued Operations (Continued)

•

A transitional services agreement to provide certain services, generally for a period no longer than six months, including general, administrative, finance, human resource and information technology services.

•

The payment by us to Autonomy of approximately $3,075 as of the closing for the purchase of certain Products and Services for our internal use.

        The revenues and corresponding expenses associated with the above agreements are reflected in our continuing operating results. None of these services gives us the ability to influence the operating and financial policies of the Digital Business. We have concluded that the direct cash flows associated with these agreements are not significant because they are estimated to represent less than 5% of both direct cash inflows and outflows of the Digital Business for the one-year period subsequent to the Digital Sale, and, therefore, we have reported the Digital Business as discontinued operations in the accompanying consolidated financial statements for all periods presented. We will continue to assess the cash flows associated with these agreements and our conclusion that the Digital Business be reported as discontinued operations until the first anniversary of the Digital Sale.

        In February 2010, we acquired the stock of Mimosa Systems, Inc. ("Mimosa"), a provider of enterprise-class digital content archiving solutions, for approximately $112,000 in cash and approximately $2,000 in fair value of options issued. Mimosa was subsequently disposed of in the sale of our Digital Business in June 2011. The purchase price paid by IMI for the Mimosa acquisition is included in cash flows from investing activities-discontinued operations in our fiscal year 2010 statement of cash flows.

New Zealand Business

        After further analysis subsequent to our April 2011 announcement of our comprehensive strategic plan, which includes reviewing select underperforming international markets, we committed in May 2011 to a plan to sell the New Zealand Business. During the second quarter of 2011, we recorded an impairment charge of $4,900 to write-down the long-lived assets of the New Zealand Business to its estimated net realizable value which is included in loss from discontinued operations. In the calculation of the carrying value of the New Zealand Business, we allocated the goodwill of our Australia/New Zealand reporting unit between Australia and New Zealand on a relative fair value basis. Additionally, we recorded a tax benefit of $7,883 during the year ended December 31, 2011 associated with the outside tax basis of the New Zealand Business, which is also reflected in loss from discontinued operations. No valuation allowance was provided against this benefit because such amount is recoverable against the capital gain associated with the Digital Sale. We completed the sale of the New Zealand Business on October 3, 2011 for a purchase price of approximately $10,000. We recorded a gain on the sale of discontinued operations associated with the New Zealand Business of $1,884 during the fourth quarter of 2011 which primarily represents cumulative translation adjustment associated with our New Zealand operations which was reclassified from accumulated other comprehensive items, net and increased the gain on the sale of New Zealand by that same amount. The New Zealand Business was previously included within the International Business segment. For all periods presented, the financial position, operating results and cash flows of the New Zealand Business, including the gain on the sale, have been reported as discontinued operations for financial reporting purposes.

140

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

14. Discontinued Operations (Continued)

        The table below summarizes certain results of operations of the New Zealand Business:

	Years Ended December 31,
	2009			2010			2011(1)
Total Revenues	$	7,279		$	7,414		$	6,489
Loss Before Benefit for Income Taxes of Discontinued Operations	$	(1,451	)	$	(533	)	$	(4,726	)
Benefit for Income Taxes		—			—			(7,883	)
(Loss) Income from Discontinued Operations, Net of Tax	$	(1,451	)	$	(533	)	$	3,157
Gain on Sale of Discontinued Operations	$	—		$	—		$	1,884
Provision for Income Taxes		—			—			—
Gain on Sale of Discontinued Operations, Net of Tax	$	—		$	—		$	1,884
Total (Loss) Income from Discontinued Operations
and Sale, Net of Tax	$	(1,451	)	$	(533	)	$	5,041

(1)

Includes the New Zealand Business results of operations through October 3, 2011, the date the sale of the New Zealand Business was consummated.

        The carrying amounts of the major classes of assets and liabilities of the New Zealand Business were as follows:

	December 31, 2010		October 3, 2011
Accounts receivable, net	$	1,339	$	1,146
Prepaid expenses and other		1,034		897
Current assets of discontinued operations		2,373		2,043
Property, plant and equipment, net		3,746		3,632
Goodwill, net		6,128		1,136
Other assets, net		5,689		5,452
Non-current assets of discontinued operations		15,563		10,220
Assets of discontinued operations	$	17,936	$	12,263
Current portion of long-term debt	$	387	$	—
Accounts payable		263		236
Accrued expenses		1,382		524
Deferred revenue		113		67
Current liabilities of discontinued operations		2,145		827
Other long-term liabilities		24		24
Deferred income taxes		1,679		1,659
Non-current liabilities of discontinued operations		1,703		1,683
Liabilities of discontinued operations	$	3,848	$	2,510

141

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

14. Discontinued Operations (Continued)

Italian Business

        After further analysis subsequent to our April 2011 announcement of our comprehensive strategic plan, which includes reviewing select underperforming international markets, we committed in December 2011 to a plan to sell the Italian Business. In the calculation of the carrying value of the Italian Business, we allocated the goodwill of our Western European reporting unit between the Italian Business and the remainder of this reporting unit on a relative fair value basis. Additionally, in conjunction with the goodwill impairment analysis performed associated with our Western Europe reporting unit, we performed an impairment test on the long-lived assets of our Italian Business in the third quarter of 2011. The undiscounted cash flows from the Italian Business were lower than the carrying value of the long-lived assets associated with the operations of the Italian Business and resulted in the requirement to fair value the long-lived assets of this lower level component. As a result, we recorded write-offs of other intangible assets, primarily customer relationship values of $8,000, and certain write-downs to property, plant and equipment (primarily racking) long-lived assets in Italy of $6,600 in the third quarter of 2011, which are included in loss from discontinued operations. We allocated $2,500 of the Western Europe goodwill impairment charge to the Italian Business which is also included in loss from discontinued operations for the year ended December 31, 2011. The Italian Business was previously included within the International Business segment. Beginning in the fourth quarter of 2011, the Italian Business has been classified as held for sale and, for all periods presented, the financial position, operating results and cash flows of the Italian Business have been reported as discontinued operations for financial reporting purposes.

        The table below summarizes certain results of operations of the Italian Business:

	Years Ended December 31,
	2009			2010			2011
Total Revenues	$	25,468		$	18,284		$	15,353
Loss Before Benefit for Income Taxes of Discontinued Operations	$	(849	)	$	(3,756	)	$	(35,350	)
Benefit for Income Taxes		(330	)		(351	)		(2,104	)
Loss from Discontinued Operations, Net of Tax	$	(519	)	$	(3,405	)	$	(33,246	)
Total Loss from Discontinued Operations, Net of Tax	$	(519	)	$	(3,405	)	$	(33,246	)

142

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

DECEMBER 31, 2011
(In thousands, except share and per share data)

14. Discontinued Operations (Continued)

        The carrying amounts of the major classes of assets and liabilities of the Italian Business were as follows:

	December 31, 2010		December 31, 2011
Accounts receivable, net	$	8,744	$	4,676
Prepaid expenses and other		1,738		602
Current assets of discontinued operations		10,482		5,278
Property, plant and equipment, net		7,583		—
Goodwill, net		2,576		—
Other assets, net		9,327		1,978
Non-current assets of discontinued operations		19,486		1,978
Assets of discontinued operations	$	29,968	$	7,256
Current portion of long-term debt	$	522	$	118
Accounts payable		1,324		563
Accrued expenses		2,386		2,552
Deferred revenue		20		41
Current liabilities of discontinued operations		4,252		3,274
Other long-term liabilities		339		43
Deferred income taxes		1,431		—
Non-current liabilities of discontinued operations		1,770		43
Liabilities of discontinued operations	$	6,022	$	3,317

143

SIGNATURES

        Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

IRON MOUNTAIN INCORPORATED
By:	/s/ BRIAN P. MCKEON Brian P. McKeon Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

Dated: February 28, 2012

        Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Name	Title	Date
/s/ C. RICHARD REESE C. Richard Reese	Chairman of the Board of Directors and Chief Executive Officer	February 28, 2012
/s/ BRIAN P. MCKEON Brian P. McKeon	Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)	February 28, 2012
/s/ TED R. ANTENUCCI Ted R. Antenucci	Director	February 28, 2012
/s/ CLARKE H. BAILEY Clarke H. Bailey	Director	February 28, 2012
/s/ KENT P. DAUTEN Kent P. Dauten	Director	February 28, 2012
/s/ PAUL F. DENINGER Paul F. Deninger	Director	February 28, 2012
/s/ PER-KRISTIAN HALVORSEN Per-Kristian Halvorsen	Director	February 28, 2012
/s/ MICHAEL LAMACH Michael Lamach	Director	February 28, 2012

144

Name	Title	Date
/s/ ARTHUR D. LITTLE Arthur D. Little	Director	February 28, 2012
/s/ ALLAN Z. LOREN Allan Z. Loren	Director	February 28, 2012
/s/ VINCENT J. RYAN Vincent J. Ryan	Director	February 28, 2012
/s/ LAURIE A. TUCKER Laurie A. Tucker	Director	February 28, 2012
/s/ ALFRED J. VERRECCHIA Alfred J. Verrecchia	Director	February 28, 2012

145

INDEX TO EXHIBITS

        Certain exhibits indicated below are incorporated by reference to documents we have filed with the Commission. Each exhibit marked by a pound sign (#) is a management contract or compensatory plan.

Exhibit		Item
	2.1	Agreement and Plan of Merger by and between Iron Mountain Incorporated, a Pennsylvania corporation, and the Company, dated as of May 27, 2005. (Incorporated by reference to the Company's Current Report on Form 8-K dated May 27, 2005).
	2.2	Purchase and Sales Agreement, by and among Autonomy Corporation plc, Iron Mountain Incorporated and certain of its subsidiaries, dated as of May 15, 2011. (Incorporated by reference to the Company's Current Report on Form 8-K dated June 8, 2011).
	3.1	Amended and Restated Certificate of Incorporation of the Company, as amended. (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2006).
	3.2	Amended and Restated Bylaws of the Company (as adopted on March 5, 2010). (Incorporated by reference to the Company's Current Report on Form 8-K dated March 5, 2010).
	3.3	Declaration of Trust of IM Capital Trust I, dated as of December 10, 2001 among the Company, The Bank of New York, The Bank of New York (Delaware) and John P. Lawrence, as trustees. (Incorporated by reference to the Company's Registration Statement No. 333-75068, filed with the Commission on December 13, 2001).
	3.4	Certificate of Trust of IM Capital Trust I. (Incorporated by reference to the Company's Registration Statement No. 333-75068, filed with the Commission on December 13, 2001).
	3.5	Certificate of Designations for Iron Mountain Incorporated Series A Junior Participating Preferred Stock, dated as of March 24, 2011. (Incorporated by reference to the Company's Current Report on Form 8-K dated March 24, 2011).
	4.1	Indenture for 71/4% Senior Subordinated Notes due 2014, dated as of January 22, 2004, by and among the Company, the Guarantors named therein and The Bank of New York, as trustee. (Incorporated by reference to the Company's Current Report on Form 8-K dated July 11, 2006).
	4.2	Senior Subordinated Indenture, dated as of December 30, 2002, among the Company, the Guarantors named therein and The Bank of New York, as trustee. (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2002).
	4.3	First Supplemental Indenture, dated as of December 30, 2002, among the Company, the Guarantors named therein and The Bank of New York, as trustee relating to the 73/4% Senior Subordinated Notes due 2015. (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2002).
	4.4	Second Supplemental Indenture, dated as of June 20, 2003, among the Company, the Guarantors named therein and The Bank of New York, as trustee relating to the 65/8% Senior Subordinated Notes due 2016. (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2003).
	4.5	Third Supplemental Indenture, dated as of July 17, 2006, by and among the Company, the Guarantors named therein and The Bank of New York Trust Company, N.A., as trustee relating to the 83/4% Senior Subordinated Notes due 2018. (Incorporated by reference to the Company's Current Report on Form 8-K dated July 20, 2006).

146

Exhibit		Item
	4.6	Fourth Supplemental Indenture, dated as of October 16, 2006, by and among the Company, the Guarantors named therein and The Bank of New York Trust Company, N.A., as trustee relating to the 8% Senior Subordinated Notes due 2018 and the 63/4% Senior Subordinated Notes due 2018. (Incorporated by reference to the Company's Current Report on Form 8-K dated October 17, 2006).
	4.7	Fifth Supplemental Indenture, dated as of January 19, 2007, by and among the Company, the Guarantors named therein and The Bank of New York Trust Company, N.A., as trustee relating to the 63/4% Senior Subordinated Notes due 2018. (Incorporated by reference to the Company's Current Report on Form 8-K dated January 24, 2007).
	4.8	Amendment No. 1 to Fifth Supplemental Indenture, dated as of February 23, 2007, by and among the Company, the Guarantors named therein and The Bank of New York Trust Company, N.A., as trustee. (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2006).
	4.9	Sixth Supplemental Indenture, dated as of March 15, 2007, by and among Iron Mountain Nova Scotia Funding Company, the Company and the other guarantors named therein and The Bank of New York Trust Company, N.A., as trustee relating to the 71/2% Senior Subordinated Notes due 2017. (Incorporated by reference to the Company's Current Report on Form 8-K dated March 23, 2007).
	4.10	Registration Rights Agreement, dated as of March 15, 2007, between Iron Mountain Nova Scotia Funding Company, the Company and the other guarantors named therein and the Initial Purchasers named therein. (Incorporated by reference to the Company's Current Report on Form 8-K dated March 23, 2007).
	4.11	Seventh Supplemental Indenture, dated as of June 5, 2008, by and among the Company, the Guarantors named therein and The Bank of New York Trust Company, N.A., as trustee relating to the 8% Senior Subordinated Notes due 2020. (Incorporated by reference to the Company's Current Report on Form 8-K dated June 11, 2008).
	4.12	Eighth Supplemental Indenture, dated as of August 10, 2009, by and among the Company, the Guarantors named therein and The Bank of New York Trust Company, N.A., as trustee relating to the 83/8% Senior Subordinated Notes due 2021. (Incorporated by reference to the Company's Current Report on Form 8-K dated August 11, 2009).
	4.13	Form of Stock Certificate representing shares of Common Stock, $0.01 par value per share, of the Company. (Incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2011).
	4.14	Rights Agreement, dated as of March 23, 2011, by and between Iron Mountain Incorporated and Mellon Investor Services LLC (which includes the form of Certificate of Designations of Series A Junior Participating Preferred Stock as Exhibit A to the Rights Agreement, the Summary of Rights to Purchase Series A Junior Participating Preferred Stock as Exhibit B to the Rights Agreement and the form of Right Certificate as Exhibit C to the Rights Agreement). (Incorporated by reference to the Company's Current Report on Form 8-K dated March 24, 2011).
	4.15	Senior Subordinated Indenture for 73/4% Senior Subordinated Notes due 2019, dated as of September 23, 2011, among the Company, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee. (Incorporated by reference to the Company's Current Report on Form 8-K, dated September 29, 2011).

147

Exhibit		Item
	4.16	First Supplemental Indenture, dated as of September 23, 2011, among Iron Mountain Incorporated, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee. (Incorporated by reference to the Company's Current Report on Form 8-K, dated September 29, 2011).
	10.1	Iron Mountain Incorporated Executive Deferred Compensation Plan. (#) (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2007).
	10.2	First Amendment to the Iron Mountain Incorporated Executive Deferred Compensation Plan. (#) (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2008).
	10.3	Iron Mountain Incorporated 1997 Stock Option Plan, as amended. (#) (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2000).
	10.4	Amendment to Iron Mountain Incorporated 1997 Stock Option Plan, as amended. (#) (Incorporated by reference to the Company's Current Report on Form 8-K dated December 10, 2008).
	10.5	Iron Mountain Incorporated 1995 Stock Incentive Plan, as amended. (#) (Incorporated by reference to Iron Mountain/DE's Current Report on Form 8-K dated April 16, 1999).
	10.6	Iron Mountain Incorporated 2002 Stock Incentive Plan. (#) (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2002).
	10.7	Third Amendment to the Iron Mountain Incorporated 2002 Stock Incentive Plan. (#) (Incorporated by reference to Appendix A of the Company's Proxy Statement for the 2008 Annual Meeting of Stockholders filed April 21, 2008).
	10.8	Fourth Amendment to the Iron Mountain Incorporated 2002 Stock Incentive Plan. (#) (Incorporated by reference to the Company's Current Report on Form 8-K dated December 10, 2008).
	10.9	Fifth Amendment to the Iron Mountain Incorporated 2002 Stock Incentive Plan. (#) (Incorporated by reference to the Company's Current Report on Form 8-K dated June 4, 2010).
	10.10	Sixth Amendment to the Iron Mountain Incorporated 2002 Stock Incentive Plan. (#) (Incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2011).
	10.11	Stratify, Inc. 1999 Stock Plan. (#) (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2007).
	10.12	Amendment to Stratify, Inc. 1999 Stock Plan. (#) (Incorporated by reference to the Company's Current Report on Form 8-K dated December 10, 2008).
	10.13	Form of Iron Mountain Incorporated Amended and Restated Non-Qualified Stock Option Agreement. (#) (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2004).
	10.14	Form of Iron Mountain Incorporated Incentive Stock Option Agreement. (#) (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2004).
	10.15	Form of Iron Mountain Incorporated 1995 Stock Incentive Plan Non-Qualified Stock Option Agreement. (#) (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2004).

148

Exhibit		Item
	10.16	Form of Iron Mountain Incorporated 1995 Stock Incentive Plan Amended and Restated Iron Mountain Non-Qualified Stock Option Agreement. (#) (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2004).
	10.17	Form of Iron Mountain Incorporated 1995 Stock Incentive Plan Incentive Stock Option Agreement. (#) (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2004).
	10.18	Form of Iron Mountain Incorporated 1995 Stock Incentive Plan Non-Qualified Stock Option Agreement. (#) (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2004).
	10.19	Form of Iron Mountain Incorporated 1997 Stock Option Plan Stock Option Agreement (version 1). (#) (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2004).
	10.20	Form of Iron Mountain Incorporated 1997 Stock Option Plan Stock Option Agreement (version 2). (#) (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2004).
	10.21	Form of Iron Mountain Incorporated 2002 Stock Incentive Plan Stock Option Agreement (version 1). (#) (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2004).
	10.22	Form of Iron Mountain Incorporated 2002 Stock Incentive Plan Stock Option Agreement (version 2). (#) (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2004).
	10.23	Iron Mountain Incorporated 2002 Stock Incentive Plan Stock Option Agreement, dated May 24, 2007, by and between Iron Mountain Incorporated and Brian P. McKeon. (#) (Incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2007).
	10.24	Form of Performance Unit Agreement pursuant to the Iron Mountain Incorporated 2002 Stock Incentive Plan. (#) (Incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2011).
	10.25	Form of Restricted Stock Unit Agreement pursuant to the Iron Mountain Incorporated 2002 Stock Incentive Plan. (#) (Incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2011).
	10.26	Change in Control Agreement, dated December 10, 2008, by and between the Company and Brian P. McKeon. (Incorporated by reference to the Company's Current Report on Form 8-K dated December 10, 2008).
	10.27	Iron Mountain Incorporated 2003 Senior Executive Incentive Program. (#) (Incorporated by reference to the Company's Current Report on Form 8-K dated April 5, 2005).
	10.28	Amendment to the Iron Mountain Incorporated 2003 Senior Executive Incentive Program. (#) (Incorporated by reference to the Company's Current Report on Form 8-K dated June 4, 2010).
	10.29	Iron Mountain Incorporated 2006 Senior Executive Incentive Program. (#) (Incorporated by reference to the Company's Current Report on Form 8-K dated June 1, 2006).
	10.30	Amendment to the Iron Mountain Incorporated 2006 Senior Executive Incentive Program. (#) (Incorporated by reference to the Company's Current Report on Form 8-K dated June 4, 2010).

149

Exhibit		Item
	10.31	Employment Agreement, dated as of August 11, 2008, by and between the Company and Robert Brennan. (#) (Incorporated by reference to the Company's Current Report on Form 8-K dated August 11, 2008).
	10.32	Contract of Employment with Iron Mountain, between Iron Mountain Belgium NV and Marc Duale. (#) (Incorporated by reference to the Company's Current Report on Form 8-K dated December 30, 2009).
	10.33	Agreement on transfer of the employment contract between Iron Mountain Belgium NV and Marc Duale to Iron Mountain BPM International, dated December 31, 2010. (#) (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2010).
	10.34	Restated Compensation Plan for Non-Employee Directors. (#) (Incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2011).
	10.35	Iron Mountain Incorporated Director Deferred Compensation Plan. (#) (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2007).
	10.36	Amended and Restated Registration Rights Agreement, dated as of June 12, 1997, by and among the Company and certain stockholders of the Company. (#) (Incorporated by reference to Iron Mountain/DE's Quarterly Report on Form 10-Q for the quarter ended June 30, 1997).
	10.37	Master Lease and Security Agreement, dated as of May 22, 2001, between Iron Mountain Statutory Trust—2001, as Lessor, and Iron Mountain Records Management, Inc., as Lessee. (Incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2001).
	10.38	Amendment No. 1 to Master Lease and Security Agreement, dated as of November 1, 2001 between Iron Mountain Statutory Trust—2001, as Lessor, and Iron Mountain Records Management, Inc., as Lessee. (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2001).
	10.39	Amendment to Master Lease and Security Agreement and Unconditional Guaranty, dated March 15, 2002, between Iron Mountain Statutory Trust—2001, Iron Mountain Information Management, Inc. and the Company. (Incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2002).
	10.40	Unconditional Guaranty, dated as of May 22, 2001, from the Company, as Guarantor, to Iron Mountain Statutory Trust—2001, as Lessor. (Incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2001).
	10.41	Subsidiary Guaranty, dated as of May 22, 2001, from certain subsidiaries of the Company as guarantors, for the benefit of Iron Mountain Statutory Trust—2001 and consented to by Bank of Nova Scotia. (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2002).
	10.42	Guaranty Letter, dated December 31, 2002, to Scotiabanc, Inc. from Iron Mountain Information Services, Inc., as Lessee and the Company as Guarantor. (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2002).
	10.43	Master Construction Agency Agreement, dated as of May 22, 2001, between Iron Mountain Statutory Trust—2001, as Lessor, and Iron Mountain Records Management, Inc., as Construction Agent. (Incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2001).

150

Exhibit		Item
	10.44	Credit Agreement, dated as of June 27, 2011, among the Company, Iron Mountain Information Management, Inc., Iron Mountain Canada Corporation, Iron Mountain Switzerland GmbH, Iron Mountain Europe Limited, Iron Mountain Australia Pty Ltd., Iron Mountain Information Management (Luxembourg) S.C.S., Iron Mountain Luxembourg S.a r.l, the Lenders party thereto, RBS Citizens, N.A. and Bank of America, N.A., as Co-Syndication Agents, Barclays Bank PLC, HSBC Bank USA, N.A., Morgan Stanley Senior Funding, Inc. and the Bank of Nova Scotia, as Co-Documentation Agents, J.P. Morgan Securities LLC and RBS Citizens, N.A., as Lead Arrangers and Joint Bookrunners, JPMorgan Chase Bank, Toronto Branch, as Canadian Administrative Agent, and JPMorgan Chase Bank, N.A., as Agent for the Lenders. (Incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2011).
	10.45	Agreement of Resignation, Appointment and Acceptance, dated as of January 28, 2005, by and among the Company, The Bank of New York, as prior trustee, and The Bank of New York Trust Company, N.A., as successor trustee, relating to the Senior Subordinated Indenture for 73/4% Senior Subordinated Notes due 2015 and 65/8% Senior Subordinated Notes due 2016, dated as of December 30, 2002. (Incorporated by reference to the Company's Current Report on Form 8-K dated July 11, 2006).
	10.46	Agreement, by and among Iron Mountain Incorporated, Elliott Associates, L.P. and Elliott International, L.P., dated April 18, 2011. (Incorporated by reference to the Company's Current Report on Form 8-K dated April 19, 2011).
	10.47	Separation Agreement, dated April 20, 2011, by and between Iron Mountain Incorporated and Robert T. Brennan. (#) (Incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2011).
	12	Statement re: Computation of Ratios. (Filed herewith).
	18.1	Preferability letter from Deloitte & Touche LLP regarding a change in accounting principle dated May 10, 2010. (Incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2010).
	21	Subsidiaries of the Company. (Filed herewith).
	23.1	Consent of Deloitte & Touche LLP (Iron Mountain Incorporated, Delaware). (Filed herewith).
	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. (Filed herewith).
	32.2	Section 1350 Certification of Chief Financial Officer. (Filed herewith).
	101.1	The following materials from Iron Mountain Incorporated's Annual Report on Form 10-K for the year ended December 31, 2011 formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Equity, (iv) Consolidated Statements of Comprehensive Income (Loss), (v) Consolidated Statements of Cash Flows and (vi) Notes to Consolidated Financial Statements, tagged as blocks of text and in detail. (Furnished herewith).

151

EX-12

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EXHIBIT 12

IRON MOUNTAIN INCORPORATED

STATEMENT OF THE CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in thousands)

	Year Ended December 31,
	2007			2008			2009			2010			2011
Earnings:
Income from Continuing Operations before Provision for Income Taxes	$	243,161		$	240,766		$	345,279		$	334,222		$	352,900
Add: Fixed Charges		292,435			309,991			292,860			284,052			286,241
	$	535,596		$	550,757		$	638,139		$	618,274		$	639,141
Fixed Charges:
Interest Expense, Net	$	214,147		$	219,989		$	212,545		$	204,559		$	205,256
Interest Portion of Rent Expense		78,288			90,002			80,315			79,493			80,985
	$	292,435		$	309,991		$	292,860		$	284,052		$	286,241
Ratio of Earnings to Fixed Charges		1.8	x		1.8	x		2.2	x		2.2	x		2.2	x

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EXHIBIT 12

IRON MOUNTAIN INCORPORATED STATEMENT OF THE CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES (Dollars in thousands)

EX-21

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Exhibit 21

IRON MOUNTAIN INCORPORATED

SCHEDULE OF SUBSIDIARIES

as of December 31, 2011

Entity name	Jurisdiction of incorporation or organization	Names under which the entity does business
397499 British Columbia Ltd.	British Columbia
Administradora de Informacion Ltda	Chile
Archirex Iratkezelö, Tanácsadó és Szolgáltató Kft	Hungary
Archivex Box Company Limited	Alberta
Archivex Limited	Nova Scotia	Archivex
Britannia Data Management Limited	England and Wales
Custodia de Documentos Limitada	Chile
Custodia S.O.S. SA	Chile
Data Destroy 2006 Limited	Ireland
Docu Guard Holding Limited	Cyprus
Iron Mountain d.o.o. Beograd	Serbia
File-Safe Limited	England and Wales
Fine Paper Recyclers Sydney Pty Ltd	Australia	Iron MountaIn Shredding
Horanross Limited	Ireland	Iron Mountain
IM EES Sp. Z.O.O.	Poland	Iron Mountain
IMI Holding Italia SpA	Italy
IMSA Peru SRL	Peru	Iron Mountain
IndexInfo Services Pty Ltd.	India	Iron Mountain
Iron Mountain (Gibraltar) Holdings Limited	Gibraltar
Iron Mountain (UK) Limited	England and Wales
Iron Mountain A/S (*minority interest held)	Denmark	Iron Mountain
Iron Mountain Alberta Company ULC	Alberta
Iron Mountain Anamnis GDM SAS	France
Iron Mountain Argentina S.A.	Argentina	Iron Mountain
Iron Mountain Arsivleme Hizmetleri A.S. (*minority interest held)	Turkey	Iron Mountain
Iron Mountain Asia Pacific Holdings Limited	Hong Kong
Iron Mountain Assurance Corporation	Vermont
Iron Mountain Australia Holdings Pty. Ltd.	Australia
Iron Mountain Australia Pty Ltd	Australia	Iron Mountain
Iron Mountain Austria Archivierung G.m.b.H.	Austria	Iron Mountain
Iron Mountain Belgium NV	Belgium	Iron Mountain
Iron Mountain BPM BVBA	Belgium
Iron Mountain BPM International S.a.r.l.	Luxembourg

Entity name	Jurisdiction of incorporation or organization	Names under which the entity does business
Iron Mountain Canada Corporation	Nova Scotia	Iron Mountain
Iron Mountain Cayman Ltd.	Cayman Islands
Iron Mountain Ceska Republika S.R.O.	Czech Republic	Iron Mountain
Iron Mountain Chile S.A.	Chile	Iron Mountain
Iron Mountain Chile Servicios S.A.	Chile	Iron Mountain
Iron Mountain CIS LLC	Russia	Iron Mountain
Iron Mountain Deutschland GmbH	Germany	Iron Mountain
Iron Mountain DIMS Ltd.	England and Wales
Iron Mountain do Brasil Ltda.	Brazil	Iron Mountain
Iron Mountain EES Holdings Limited	Cyprus
Iron Mountain Information Management (Luxembourg) S.C.S	Luxembourg
Iron Mountain Espana, S.A.	Spain	Iron Mountain
Iron Mountain Europe (Group) Limited	England and Wales
Iron Mountain Europe Limited	England and Wales
Iron Mountain France SAS	France	Iron Mountain
Iron Mountain Fulfillment Services, Inc.	Delaware	Iron Mountain Fulfillment Services
Iron Mountain Global Holdings, LLC	Delaware
Iron Mountain Global, L.L.C.	Delaware
Iron Mountain Group (Europe) Limited	England and Wales
Iron Mountain Hellas SA	Greece
Iron Mountain Holdings (Europe) Limited	England and Wales
Iron Mountain Holdings (France), SNC	France
Iron Mountain Hong Kong Limited	Hong Kong
Iron Mountain India Holdings	Mauritius
Iron Mountain India Private Limited	India	Iron Mountain
Iron Mountain Information Management Co. Ltd.	Taiwan
Iron Mountain Information Management, Inc.	Delaware
Iron Mountain Intellectual Property Management, Inc.	Delaware
Iron Mountain Ireland (Holdings) Ltd.	Ireland
Iron Mountain Ireland Ltd.	Ireland
Iron Mountain Italia SpA	Italy	Iron Mountain
Iron Mountain Livingston Limited	England and Wales
Iron Mountain Luxembourg S.A.R.L.	Luxembourg
Iron Mountain Magyarorszaq kft	Hungary
Iron Mountain Mayflower Ltd.	England and Wales	Iron Mountain
Iron Mountain MDM Limited	England and Wales

Entity name	Jurisdiction of incorporation or organization	Names under which the entity does business
Iron Mountain Mexico, S de R.L. de C.V.	Mexico
Iron Mountain Nederland (Holdings) B.V.	Netherlands	Iron Mountain
Iron Mountain Nederland B.V.	Netherlands
Iron Mountain Norge AS	Norway	Iron Mountain
Iron Mountain Participaton SA	France	Iron Mountain
Iron Mountain Peru S.A.	Peru
Iron Mountain PLE Limited	England and Wales	Iron Mountain
Iron Mountain Poland Holdings Limited	Cyprus
Iron Mountain Polska Sp. Z.o.o.	Poland
Iron Mountain Records Management (Puerto Rico), Inc.	Puerto Rico
Iron Mountain Sdn Bhd	Malaysia	Iron Mountain
Iron Mountain Secure Shredding Ltd.	England and Wales
Iron Mountain Shanghai Co. Ltd	China
Iron Mountain Singapore Pte. Limited	Singapore
Iron Mountain Slovakia s.r.o.	Slovakia
Iron Mountain South America Ltd.	Cayman Islands	Iron Mountain
Iron Mountain SRL	Romania
Iron Mountain Statutory Trust—1998	Connecticut
Iron Mountain Statutory Trust—1999	Connecticut
Iron Mountain Statutory Trust—2001	Connecticut
Iron Mountain Switzerland GmbH	Switzerland
Iron Mountain Southeast Asia Holdings Ltd.	Hong Kong
Iron Mountain Ukraine LLC	Ukraine
Kelman Data Management LLC (*minority interest held)	Delaware
Kelman Data Management LP (*minority interest held)	Alberta
Kelman Data Management GP, Inc. (*minority interest held)	Alberta
Kestrel Data Services Limited	England and Wales
Marshgate Morangis S.a.r.l.	Luxembourg
Mountain Glenwood Real Estate, Inc.	British Columbia
Mountain Real Estate Assets, Inc.	Delaware
Mountain Reserve III, Inc.	Delaware
Iron Mountain Services Private Limited f/k/a Mountain Software Services Private Limited	India
Nettlebed Acquisition Corp.	Delaware
New Horizon Core Storage Ltd.	Alberta
Record Data Limited	Ireland

Entity name	Jurisdiction of incorporation or organization	Names under which the entity does business
Secure Paper Services Pty. Ltd.	Australia
Silver Sky Limited	Jersey Channel Islands
Sispace AG (*minority interest held)	Switzerland	Iron Mountain
Sistemas de Archivo Corporativo, S de R.L. de C.V.	Mexico
Sistemas de Archivo de Mexico, S de R.L. de C.V.	Mexico
Storbox SA	Chile	Iron Mountain
The Imaging Centre Pty. Ltd.	Australia
Treeline Services Corporation	Delaware
Upper Providence Venture I, L.P.	Pennsylvania	Iron Mountain
Venues Australia Pty. Ltd.	Australia

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Exhibit 21

IRON MOUNTAIN INCORPORATED SCHEDULE OF SUBSIDIARIES as of December 31, 2011

EX-23.1

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EXHIBIT 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

        We consent to the incorporation by reference in Registration Statement No. 333-167837 on Form S-3ASR, No. 333-91577 on Form S-4 and Nos. 333-43787, 333-89008, 333-95901, 333-105938, 333-114398, 333-118322, 333-120395, 333-126982, 333-130270, 333-138716, 333-147995, 333-155304, and 333-165261 on Form S-8 of our report dated February 28, 2012 relating to the financial statements of Iron Mountain Incorporated (the "Company") and of our report, dated February 28, 2012, relating to the effectiveness of the Company's internal control over financial reporting (which report expresses an adverse opinion on the effectiveness of the Company's internal control over financial reporting because of a material weakness) appearing in this Annual Report on Form 10-K of Iron Mountain Incorporated for the year ended December 31, 2011.

/s/ DELOITTE & TOUCHE LLP

Boston, Massachusetts
February 28, 2012

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EXHIBIT 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

EX-31.1

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EXHIBIT 31.1

CERTIFICATIONS

I, C. Richard Reese, certify that:

1.

I have reviewed this annual report on Form 10-K 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 officers 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 officers 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 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.

Date: February 28, 2012 /s/ C. RICHARD REESE
C. Richard Reese
Chief Executive Officer

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EXHIBIT 31.1

CERTIFICATIONS

EX-31.2

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EXHIBIT 31.2

CERTIFICATIONS

I, Brian P. McKeon, certify that:

1.

I have reviewed this annual report on Form 10-K 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 officers 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 officers 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 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.

Date: February 28, 2012 /s/ BRIAN P. MCKEON
Brian P. McKeon
Chief Financial Officer

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EXHIBIT 31.2

CERTIFICATIONS

EX-32.1

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EXHIBIT 32.1

CERTIFICATION PURSUANT TO
18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002

        In connection with the filing of the Annual Report on Form 10-K for the year ended December 31, 2011 (the "Report") by Iron Mountain Incorporated (the "Company"), the undersigned, as the Chief Executive Officer of the Company, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1.

the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and

2.

the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: February 28, 2012 /s/ C. RICHARD REESE
C. Richard Reese
Chief Executive Officer

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EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

EX-32.2

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EXHIBIT 32.2

CERTIFICATION PURSUANT TO
18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002

        In connection with the filing of the Annual Report on Form 10-K for the year ended December 31, 2011 (the "Report") by Iron Mountain Incorporated (the "Company"), the undersigned, as the Chief Financial Officer of the Company, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1.

the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and

2.

the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: February 28, 2012 /s/ BRIAN P. MCKEON
Brian P. McKeon
Chief Financial Officer

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EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

XML

Summary of Significant Accounting Policies (Details 3) (USD $) In Thousands, unless otherwise specified	12 Months Ended			12 Months Ended				12 Months Ended			12 Months Ended		3 Months Ended	12 Months Ended											12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2011 North American Business	Dec. 31, 2010 North American Business	Dec. 31, 2009 North American Business	Oct. 01, 2011 North American Business Minimum	Dec. 31, 2011 International Business	Dec. 31, 2010 International Business	Dec. 31, 2009 International Business	Dec. 31, 2011 Europe unit	Dec. 31, 2010 Europe	Sep. 30, 2011 Western Europe	Dec. 31, 2011 Western Europe	Dec. 31, 2011 Central Europe	Aug. 31, 2011 Central Europe	Dec. 31, 2011 Latin America	Dec. 31, 2010 Latin America	Oct. 01, 2011 Latin America Minimum	Dec. 31, 2011 Australia	Dec. 31, 2010 Australia	Oct. 01, 2011 Australia Minimum	Dec. 31, 2011 UKI	Aug. 31, 2011 UKI	Dec. 31, 2010 Worldwide Digital Business
Goodwill
Goodwill impairment charge allocated to the technology escrow service																									$ 85,909
Reporting unit, percentage that fair value exceeded carrying value							40.00%									4.90%			40.00%			40.00%		15.10%
Provisional goodwill impairment charge													45,000
Goodwill impairment charge	46,500	85,909			85,909			46,500						46,500
Number of reporting units											3
Tax benefit on goodwill impairment charge														5,449
Gross amount of goodwill
Balance, beginning of period	2,554,428	2,562,676		2,012,049	1,996,959			542,379	565,717
Deductible goodwill acquired during the period	1,398			1,398
Non-deductible goodwill acquired during the year	35,207	5,730			1,700			35,207	4,030
Adjustments to purchase reserves		(401)			(401)
Fair value and other adjustments	1,296	2,717		2,161	2,553			(865)	164
Currency effects	(18,044)	(16,294)		(5,367)	11,238			(12,677)	(27,532)
Balance, end of period	2,574,285	2,554,428		2,010,241	2,012,049			564,044	542,379
Accumulated amortization
Balance, beginning of period	274,867	189,357		261,629	175,158			13,238	14,199
Goodwill impairment charge allocated to the technology escrow service	46,500	85,909			85,909			46,500						46,500
Currency effects	(1,350)	(399)		(267)	562			(1,083)	(961)
Balance, end of period	320,017	274,867		261,362	261,629			58,655	13,238
Net balance	2,254,268	2,279,561	2,373,319	1,748,879	1,750,420	1,821,801		505,389	529,141	551,518		438,344		46,439	63,781		27,322	29,787		61,679	61,010		306,150
Accumlated Goodwill Impairment Balance	132,409	85,909		85,909	85,909			46,500
Fair value and other adjustments, related to property, plant and equipment, net customer relationships and deferred income taxes	(835)	(711)
Cash paid related to prior year's acquisitions	131	1,428
Fair value and other adjustments, related to contingent earn out obligation accrued and unpaid	$ 2,000	$ 2,000
UKI, Western Europe and Central Europe aggregated for reporting purposes											1

XML

Selected Consolidated Financial Statements of Parent, Guarantors, Canada Company and Non-Guarantors (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Revenues:
Storage									$ 1,682,990	$ 1,598,718	$ 1,533,792
Service									1,331,713	1,293,631	1,240,592
Total Revenues	741,837	768,306	758,551	746,009	729,168	725,649	718,536	718,996	3,014,703	2,892,349	2,774,384
Operating Expenses:
Cost of sales (excluding depreciation and amortization)									1,245,200	1,192,862	1,201,871
Selling, general and administrative									834,591	772,811	749,934
Depreciation and amortization									319,499	304,205	277,186
Intangible Impairments									46,500	85,909
Loss (Gain) on disposal/write-down of property, plant and equipment, net									(2,286)	(10,987)	168
Total Operating Expenses									2,443,504	2,344,800	2,229,159
Operating Income (Loss)	149,463	135,199	148,937	137,600	146,243	105,686	157,278	138,342	571,199	547,549	545,225
Interest Expense (Income), Net									205,256	204,559	212,545
Other (Income) Expense, Net									13,043	8,768	(12,599)
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes									352,900	334,222	345,279
Provision (Benefit) for Income Taxes									106,488	167,483	113,762
(Loss) Income from Continuing Operations	47,382	50,394	67,460	81,176	57,930	27,202	49,252	32,355	246,412	166,739	231,517
(Loss) Income from Discontinued Operations, Net of Tax									(47,439)	(219,417)	(12,138)
Gain on Sale of Discontinued Operations, Net of Tax									200,619
Net Income (Loss)	34,001	37,925	253,047	74,619	33,256	(151,728)	40,817	24,977	399,592	(52,678)	219,379
Less: Net Income (Loss) Attributable to Noncontrolling Interests									4,054	4,908	1,429
Net Income (Loss) Attributable to Iron Mountain Incorporated	32,056	37,338	252,684	73,460	32,040	(154,687)	40,357	24,704	395,538	(57,586)	217,950
Parent
Operating Expenses:
Cost of sales (excluding depreciation and amortization)									2,000
Selling, general and administrative									(1,885)	68	92
Depreciation and amortization									457	223	231
Total Operating Expenses									572	291	323
Operating Income (Loss)									(572)	(291)	(323)
Interest Expense (Income), Net									173,738	194,689	202,947
Other (Income) Expense, Net									(3,944)	(22,662)	44,642
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes									(170,366)	(172,318)	(247,912)
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax									(565,904)	(114,732)	(465,862)
(Loss) Income from Continuing Operations									395,538	(57,586)	217,950
Net Income (Loss)									395,538	(57,586)	217,950
Net Income (Loss) Attributable to Iron Mountain Incorporated									395,538	(57,586)	217,950
Guarantors
Revenues:
Storage									1,132,743	1,113,674	1,094,221
Service									833,652	836,443	822,907
Total Revenues									1,966,395	1,950,117	1,917,128
Operating Expenses:
Cost of sales (excluding depreciation and amortization)									760,300	746,479	778,296
Selling, general and administrative									548,848	516,664	523,698
Depreciation and amortization									192,551	201,534	189,990
Intangible Impairments										84,611
Loss (Gain) on disposal/write-down of property, plant and equipment, net									(1,120)	(1,039)	1,205
Total Operating Expenses									1,500,579	1,548,249	1,493,189
Operating Income (Loss)									465,816	401,868	423,939
Interest Expense (Income), Net									(24,055)	(41,770)	(41,320)
Other (Income) Expense, Net									7,561	(1,882)	(5,131)
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes									482,310	445,520	470,390
Provision (Benefit) for Income Taxes									86,139	151,329	100,409
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax									23,069	(34,014)	(102,601)
(Loss) Income from Continuing Operations									373,102	328,205	472,582
(Loss) Income from Discontinued Operations, Net of Tax									(17,350)	(215,479)	(10,168)
Gain on Sale of Discontinued Operations, Net of Tax									198,735
Net Income (Loss)									554,487	112,726	462,414
Net Income (Loss) Attributable to Iron Mountain Incorporated									554,487	112,726	462,414
Canada Company
Revenues:
Storage									120,476	110,768	93,244
Service									115,973	113,498	96,764
Total Revenues									236,449	224,266	190,008
Operating Expenses:
Cost of sales (excluding depreciation and amortization)									91,249	86,352	80,205
Selling, general and administrative									38,965	36,587	32,127
Depreciation and amortization									18,685	18,818	15,717
Loss (Gain) on disposal/write-down of property, plant and equipment, net									(420)	196	123
Total Operating Expenses									148,479	141,953	128,172
Operating Income (Loss)									87,970	82,313	61,836
Interest Expense (Income), Net									44,559	44,898	42,066
Other (Income) Expense, Net									315	18	(2)
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes									43,096	37,397	19,772
Provision (Benefit) for Income Taxes									20,681	11,142	3,624
(Loss) Income from Continuing Operations									22,415	26,255	16,148
Net Income (Loss)									22,415	26,255	16,148
Net Income (Loss) Attributable to Iron Mountain Incorporated									22,415	26,255	16,148
Non-Guarantors
Revenues:
Storage									429,771	374,276	346,327
Service									382,088	343,690	320,921
Total Revenues									811,859	717,966	667,248
Operating Expenses:
Cost of sales (excluding depreciation and amortization)									391,651	360,031	343,370
Selling, general and administrative									248,663	219,492	194,017
Depreciation and amortization									107,806	83,630	71,248
Intangible Impairments									46,500	1,298
Loss (Gain) on disposal/write-down of property, plant and equipment, net									(746)	(10,144)	(1,160)
Total Operating Expenses									793,874	654,307	607,475
Operating Income (Loss)									17,985	63,659	59,773
Interest Expense (Income), Net									11,014	6,742	8,852
Other (Income) Expense, Net									9,111	33,294	(52,108)
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes									(2,140)	23,623	103,029
Provision (Benefit) for Income Taxes									(332)	5,012	9,729
(Loss) Income from Continuing Operations									(1,808)	18,611	93,300
(Loss) Income from Discontinued Operations, Net of Tax									(30,089)	(3,938)	(1,970)
Gain on Sale of Discontinued Operations, Net of Tax									1,884
Net Income (Loss)									(30,013)	14,673	91,330
Less: Net Income (Loss) Attributable to Noncontrolling Interests									4,054	4,908	1,429
Net Income (Loss) Attributable to Iron Mountain Incorporated									(34,067)	9,765	89,901
Eliminations
Operating Expenses:
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax									542,835	148,746	568,463
(Loss) Income from Continuing Operations									(542,835)	(148,746)	(568,463)
Net Income (Loss)									(542,835)	(148,746)	(568,463)
Net Income (Loss) Attributable to Iron Mountain Incorporated									$ (542,835)	$ (148,746)	$ (568,463)

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Derivative Instruments and Hedging Activities (Details) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 Foreign exchange contracts USD ($)	Dec. 31, 2010 Foreign exchange contracts USD ($)	Dec. 31, 2009 Foreign exchange contracts USD ($)	Dec. 31, 2011 Iron Mountain Europe Limited ("IME") U.S. dollars:British pounds sterling USD ($)	Dec. 31, 2011 Iron Mountain Europe Limited ("IME") U.S. dollars:British pounds sterling GBP (£)	Dec. 31, 2011 Iron Mountain Australia Pty Ltd U.S. dollars:Australian dollars USD ($)	Dec. 31, 2011 Iron Mountain Australia Pty Ltd U.S. dollars:Australian dollars AUD
Derivative instruments
Notional amount of outstanding forward contracts, purchases				$ 195,610		$ 75,065
Notional amount of outstanding forward contracts, sales					125,000		73,000
Net cash disbursements (receipts) from foreign currency forward contracts	$ 1,092	$ (2,030)	$ 2,392

XML

401(k) Plans (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
401(k) Plans
Eligible employee, deferral percentage, low end of range	1.00%
Eligible employee, deferral percentage, high end of range	25.00%
Contributions by employer (in dollars)	$ 18,133	$ 14,282	$ 11,508

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Selected Consolidated Financial Statements of Parent, Guarantors, Canada Company and Non-Guarantors (Details 3) (USD $) In Thousands, unless otherwise specified	1 Months Ended								12 Months Ended
	Jan. 31, 2012	Oct. 31, 2011	Jul. 31, 2011	Apr. 30, 2011	Jan. 31, 2011	Oct. 31, 2010	Jul. 31, 2010	Apr. 30, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Consolidating financial statements
Cash Flows from Operating Activities-Continuing Operations									$ 663,514	$ 603,229	$ 586,570
Cash Flows from Operating Activities-Discontinued Operations									(48,076)	21,911	30,341
Cash Flows from Operating Activities									615,438	625,140	616,911
Cash Flows from Investing Activities:
Capital expenditures									(209,155)	(258,849)	(287,917)
Cash paid for acquisitions, net of cash acquired									(75,246)	(13,841)	(1,518)
Investment in restricted cash									(5)	(35,102)
Additions to customer relationship and acquisition costs									(21,703)	(13,202)	(10,741)
Investment in joint ventures									(335)		(3,114)
Proceeds from sales of property and equipment and other, net									4,231	22,536	4,591
Cash Flows from Investing Activities-Continuing Operations									(302,213)	(298,458)	(298,699)
Cash Flows from Investing Activities-Discontinued Operations									380,721	(134,212)	(25,367)
Cash Flows from Investing Activities									78,508	(432,670)	(324,066)
Cash Flows from Financing Activities:
Repayment of revolving credit and term loan facilities and other debt									(2,017,174)	(101,884)	(283,318)
Proceeds from revolving credit and term loan facilities and other debt									2,170,979	53,567	33,944
Early retirement of senior subordinated notes									(231,255)	(202,584)	(447,874)
Net proceeds from sales of senior subordinated notes									394,000		539,688
Debt financing (repayment to) and equity contribution from (distribution to) noncontrolling interests, net									698	169	1,064
Stock repurchases									(984,953)	(111,563)
Parent cash dividends	(43,180)	(46,877)	(50,694)	(37,601)	(37,514)	(12,532)	(12,641)	(12,720)	(172,616)	(37,893)
Proceeds from exercise of stock options and employee stock purchase plan									85,742	18,225	24,233
Excess tax benefits from stock-based compensation									919	2,252	5,532
Payment of debt financing costs									(9,010)		(1,555)
Cash Flows from Financing Activities-Continuing Operations									(762,670)	(379,711)	(128,286)
Cash Flows from Financing Activities-Discontinued Operations									(1,138)	(1,523)	(1,406)
Cash Flows from Financing Activities									(763,808)	(381,234)	(129,692)
Effect of Exchange Rates on Cash and Cash Equivalents									(8,986)	801	5,133
Increase (Decrease) in Cash and Cash Equivalents									(78,848)	(187,963)	168,286
Cash and Cash Equivalents, Beginning of Period	179,845				258,693				258,693	446,656	278,370
Cash and Cash Equivalents, End of Period									179,845	258,693	446,656
Parent
Consolidating financial statements
Cash Flows from Operating Activities-Continuing Operations									(162,478)	(180,588)	(186,314)
Cash Flows from Operating Activities									(162,478)	(180,588)	(186,314)
Cash Flows from Investing Activities:
Intercompany loans to subsidiaries									1,469,788	577,316	284,604
Investment in subsidiaries									(12,595)	(10,258)	(164,256)
Investment in restricted cash									(5)	(35,102)
Cash Flows from Investing Activities-Continuing Operations									1,457,188	531,956	120,348
Cash Flows from Investing Activities-Discontinued Operations										(1,796)
Cash Flows from Investing Activities									1,457,188	530,160	120,348
Cash Flows from Financing Activities:
Repayment of revolving credit and term loan facilities and other debt									(396,200)	(4,100)	(54,150)
Early retirement of senior subordinated notes									(231,255)	(202,584)	(447,874)
Net proceeds from sales of senior subordinated notes									394,000		539,688
Stock repurchases									(984,953)	(111,563)
Parent cash dividends									(172,616)	(37,893)
Proceeds from exercise of stock options and employee stock purchase plan									85,742	18,225	24,233
Excess tax benefits from stock-based compensation									919	2,252	5,532
Payment of debt financing costs									(828)		(1,463)
Cash Flows from Financing Activities-Continuing Operations									(1,305,191)	(335,663)	65,966
Cash Flows from Financing Activities									(1,305,191)	(335,663)	65,966
Increase (Decrease) in Cash and Cash Equivalents									(10,481)	13,909
Cash and Cash Equivalents, Beginning of Period					13,909				13,909
Cash and Cash Equivalents, End of Period									3,428	13,909
Guarantors
Consolidating financial statements
Cash Flows from Operating Activities-Continuing Operations									698,033	578,159	602,593
Cash Flows from Operating Activities-Discontinued Operations									(47,166)	19,347	31,470
Cash Flows from Operating Activities									650,867	597,506	634,063
Cash Flows from Investing Activities:
Capital expenditures									(114,768)	(137,937)	(153,995)
Cash paid for acquisitions, net of cash acquired									(5,378)	(1,970)	(256)
Intercompany loans to subsidiaries									(83,385)	34,465	17,807
Investment in subsidiaries									(12,595)	(35,124)	(164,256)
Additions to customer relationship and acquisition costs									(15,700)	(9,332)	(6,711)
Proceeds from sales of property and equipment and other, net									363	5,867	3,717
Cash Flows from Investing Activities-Continuing Operations									(231,463)	(144,031)	(303,694)
Cash Flows from Investing Activities-Discontinued Operations									371,365	(129,972)	(20,261)
Cash Flows from Investing Activities									139,902	(274,003)	(323,955)
Cash Flows from Financing Activities:
Repayment of revolving credit and term loan facilities and other debt									(1,458,628)	(24,226)	(18,438)
Proceeds from revolving credit and term loan facilities and other debt									2,014,500
Intercompany loans from parent									(1,461,888)	(572,335)	(283,974)
Equity contribution from parent									12,595	10,258	164,256
Payment of debt financing costs									(8,182)
Cash Flows from Financing Activities-Continuing Operations									(901,603)	(586,303)	(138,156)
Cash Flows from Financing Activities-Discontinued Operations										1,796
Cash Flows from Financing Activities									(901,603)	(584,507)	(138,156)
Increase (Decrease) in Cash and Cash Equivalents									(110,834)	(261,004)	171,952
Cash and Cash Equivalents, Beginning of Period					121,584				121,584	382,588	210,636
Cash and Cash Equivalents, End of Period									10,750	121,584	382,588
Canada Company
Consolidating financial statements
Cash Flows from Operating Activities-Continuing Operations									45,232	56,113	38,154
Cash Flows from Operating Activities									45,232	56,113	38,154
Cash Flows from Investing Activities:
Capital expenditures									(14,155)	(16,593)	(22,042)
Cash paid for acquisitions, net of cash acquired									(58)	(3,705)
Additions to customer relationship and acquisition costs									(462)	(594)	(520)
Proceeds from sales of property and equipment and other, net									66	93	45
Cash Flows from Investing Activities-Continuing Operations									(14,609)	(20,799)	(22,517)
Cash Flows from Investing Activities									(14,609)	(20,799)	(22,517)
Cash Flows from Financing Activities:
Repayment of revolving credit and term loan facilities and other debt									(90,752)	(2,504)	(192,097)
Proceeds from revolving credit and term loan facilities and other debt									89,838
Intercompany loans from parent									5,429	122	5,751
Equity contribution from parent											156,655
Payment of debt financing costs											(37)
Cash Flows from Financing Activities-Continuing Operations									4,515	(2,382)	(29,728)
Cash Flows from Financing Activities									4,515	(2,382)	(29,728)
Effect of Exchange Rates on Cash and Cash Equivalents									(3,883)	814	928
Increase (Decrease) in Cash and Cash Equivalents									31,255	33,746	(13,163)
Cash and Cash Equivalents, Beginning of Period					37,652				37,652	3,906	17,069
Cash and Cash Equivalents, End of Period									68,907	37,652	3,906
Non-Guarantors
Consolidating financial statements
Cash Flows from Operating Activities-Continuing Operations									82,727	149,545	132,137
Cash Flows from Operating Activities-Discontinued Operations									(910)	2,564	(1,129)
Cash Flows from Operating Activities									81,817	152,109	131,008
Cash Flows from Investing Activities:
Capital expenditures									(80,232)	(104,319)	(111,880)
Cash paid for acquisitions, net of cash acquired									(69,810)	(8,166)	(1,262)
Additions to customer relationship and acquisition costs									(5,541)	(3,276)	(3,510)
Investment in joint ventures									(335)		(3,114)
Proceeds from sales of property and equipment and other, net									3,802	16,576	829
Cash Flows from Investing Activities-Continuing Operations									(152,116)	(99,185)	(118,937)
Cash Flows from Investing Activities-Discontinued Operations									9,356	(6,036)	(5,106)
Cash Flows from Investing Activities									(142,760)	(105,221)	(124,043)
Cash Flows from Financing Activities:
Repayment of revolving credit and term loan facilities and other debt									(71,594)	(71,054)	(18,633)
Proceeds from revolving credit and term loan facilities and other debt									66,641	53,567	33,944
Debt financing (repayment to) and equity contribution from (distribution to) noncontrolling interests, net									698	169	1,064
Intercompany loans from parent									70,056	(39,568)	(24,188)
Equity contribution from parent									12,595	35,124	7,601
Payment of debt financing costs											(55)
Cash Flows from Financing Activities-Continuing Operations									78,396	(21,762)	(267)
Cash Flows from Financing Activities-Discontinued Operations									(1,138)	273	(1,406)
Cash Flows from Financing Activities									77,258	(21,489)	(1,673)
Effect of Exchange Rates on Cash and Cash Equivalents									(5,103)	(13)	4,205
Increase (Decrease) in Cash and Cash Equivalents									11,212	25,386	9,497
Cash and Cash Equivalents, Beginning of Period					85,548				85,548	60,162	50,665
Cash and Cash Equivalents, End of Period									96,760	85,548	60,162
Eliminations
Cash Flows from Investing Activities:
Intercompany loans to subsidiaries									(1,386,403)	(611,781)	(302,411)
Investment in subsidiaries									25,190	45,382	328,512
Cash Flows from Investing Activities-Continuing Operations									(1,361,213)	(566,399)	26,101
Cash Flows from Investing Activities-Discontinued Operations										3,592
Cash Flows from Investing Activities									(1,361,213)	(562,807)	26,101
Cash Flows from Financing Activities:
Intercompany loans from parent									1,386,403	611,781	302,411
Equity contribution from parent									(25,190)	(45,382)	(328,512)
Cash Flows from Financing Activities-Continuing Operations									1,361,213	566,399	(26,101)
Cash Flows from Financing Activities-Discontinued Operations										(3,592)
Cash Flows from Financing Activities									$ 1,361,213	$ 562,807	$ (26,101)

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Summary of Significant Accounting Policies (Details 10) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Investments
Equity method investment, carrying value	$ 3,499	$ 9,663
Other Expense (Income), Net:
Foreign currency transaction (gains) losses, net	17,352	5,664	(12,845)
Debt extinguishment expense, net	993	1,792	3,031
Other, net	(5,302)	1,312	(2,785)
Total other expense (income), net	$ 13,043	$ 8,768	$ (12,599)
Iron Mountain A/S
Investments
Equity method investment (as a percent)	20.00%
Iron Mountain Arsivleme Hizmetleri A.S
Investments
Equity method investment (as a percent)	40.00%
Sispace AG
Investments
Equity method investment (as a percent)	15.00%
Kelman Technologies Inc
Investments
Equity method investment (as a percent)	25.00%

XML

Segment Information (Tables)

12 Months Ended

Dec. 31, 2011

Segment Information

Analysis of business segment information and reconciliation to the consolidated financial statements

	North American Business		International Business		Corporate			Total Consolidated
2009
Total Revenues	$	2,124,964	$	649,420	$	—		$	2,774,384
Depreciation and Amortization		174,096		69,768		33,322			277,186
Depreciation		162,400		57,570		33,091			253,061
Amortization		11,696		12,198		231			24,125
Adjusted OIBDA		866,356		120,482		(164,259	)		822,579
Total Assets(1)		4,695,013		1,667,266		488,878			6,851,157
Expenditures for Segment Assets		160,784		110,624		28,768			300,176
Capital Expenditures		153,273		105,876		28,768			287,917
Cash Paid for Acquisitions, Net of Cash Acquired		256		1,262		—			1,518
Additions to Customer Relationship and Acquisition Costs		7,255		3,486		—			10,741
2010
Total Revenues		2,193,464		698,885		—			2,892,349
Depreciation and Amortization		185,483		81,932		36,790			304,205
Depreciation		172,713		69,480		36,567			278,760
Amortization		12,770		12,452		223			25,445
Adjusted OIBDA		969,505		130,969		(173,798	)		926,676
Total Assets(1)		4,370,465		1,641,251		404,677			6,416,393
Expenditures for Segment Assets		135,825		115,496		34,571			285,892
Capital Expenditures		120,162		104,116		34,571			258,849
Cash Paid for Acquisitions, Net of Cash Acquired		5,675		8,166		—			13,841
Additions to Customer Relationship and Acquisition Costs		9,988		3,214		—			13,202
2011
Total Revenues		2,229,143		785,560		—			3,014,703
Depreciation and Amortization		180,763		104,815		33,921			319,499
Depreciation		168,549		88,432		33,657			290,638
Amortization		12,214		16,383		264			28,861
Adjusted OIBDA		961,973		164,212		(191,273	)		934,912
Total Assets(1)		4,194,850		1,646,701		199,707			6,041,258
Expenditures for Segment Assets		139,079		152,064		14,961			306,104
Capital Expenditures		117,338		76,856		14,961			209,155
Cash Paid for Acquisitions, Net of Cash Acquired		5,436		69,810		—			75,246
Additions to Customer Relationship and Acquisition Costs		16,305		5,398		—			21,703

(1)

Excludes all intercompany receivables or payables and investment in subsidiary balances.

Reconciliation of Adjusted OIBDA to Income from continuing operations before Provision for Income Taxes

	Years Ended December 31,
	2009			2010			2011
Adjusted OIBDA	$	822,579		$	926,676		$	934,912
Less: Depreciation and Amortization		277,186			304,205			319,499
Intangible Impairments (See Note 2.g. and Note 14)		—			85,909			46,500
Loss (Gain) on Disposal/Write-down of
Property, Plant and Equipment, Net		168			(10,987	)		(2,286	)
Interest Expense, Net		212,545			204,559			205,256
Other (Income) Expense, Net		(12,599	)		8,768			13,043
Income from Continuing Operations before Provision (Benefit) for Income Taxes	$	345,279		$	334,222		$	352,900

Schedule of geographic information

	Years Ended December 31,
	2009		2010		2011
Revenues:
United States	$	1,925,424	$	1,958,820	$	1,984,805
United Kingdom		292,685		295,462		307,905
Canada		196,246		231,477		244,337
Other International		360,029		406,590		477,656
Total Revenues	$	2,774,384	$	2,892,349	$	3,014,703
Long-lived Assets:
United States	$	3,736,626	$	3,341,241	$	3,306,574
United Kingdom		617,141		552,309		529,239
Canada		425,838		448,485		434,517
Other International		855,804		861,896		856,478
Total Long-lived Assets	$	5,635,409	$	5,203,931	$	5,126,808

Schedule of revenues by product and service lines

	Years Ended December 31,
	2009		2010		2011
Revenues:
Records Management(1)(2)	$	2,040,497	$	2,081,492	$	2,183,154
Data Protection & Recovery(1)(3)		483,909		531,580		522,632
Information Destruction(1)(4)		249,978		279,277		308,917
Total Revenues	$	2,774,384	$	2,892,349	$	3,014,703

(1)

Each of the service offerings within our product and service lines has a component of revenue that is storage related and a component that is service revenues, except the Information Destruction service offering, which does not have a storage component.

(2)

Includes Business Records Management, Compliant Records Management and Consulting Services, Hybrid Services, Fulfillment Services, Health Information Management Solutions, Film and Sound Archives and Energy Data Services.

(3)

Includes Data Protection & Recovery Services and Technology Escrow Services.

(4)

Includes Secure Shredding and Compliant Information Destruction.

XML

Acquisitions (Details 2) (Customer relationship assets)	12 Months Ended
	Dec. 31, 2011 year	Dec. 31, 2010 year
Customer relationship assets
Acquired Finite-Lived Intangible Assets
Weighted average lives of finite-lived intangible assets associated with acquisitions (in years)	20	10

XML

Stockholders' Equity Matters (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	1 Months Ended																12 Months Ended
	Jan. 31, 2012	Dec. 31, 2011 Denominator Numerator	Oct. 31, 2011	Sep. 30, 2011	Jul. 31, 2011	Jun. 30, 2011	Apr. 30, 2011	Mar. 31, 2011 Right	Jan. 31, 2011	Dec. 31, 2010	Oct. 31, 2010	Sep. 30, 2010	Jul. 31, 2010	Jun. 30, 2010	Apr. 30, 2010	Mar. 31, 2010	Dec. 31, 2011 Denominator Numerator	Dec. 31, 2010
Stockholders' Equity Note
Share repurchases authorized amount																	$ 1,200,000
Remaining amount available under share repurchase program																	100,701
Percentage of outstanding common stock authorized for repurchase																	2.00%
Dividends declared (in dollars per share)		$ 0.2500		$ 0.2500		$ 0.2500		$ 0.1875		$ 0.1875		$ 0.0625		$ 0.0625		$ 0.0625	$ 0.9375	$ 0.3750
Dividends declared		43,180		46,877		50,694		37,601		37,514		12,532		12,641		12,720	178,281	75,407
Dividends paid ( in dollars per share)	$ 0.2500			$ 0.2500		$ 0.2500		$ 0.1875		$ 0.1875		$ 0.0625		$ 0.0625		$ 0.0625
Dividends paid	$ 43,180		$ 46,877		$ 50,694		$ 37,601		$ 37,514		$ 12,532		$ 12,641		$ 12,720		$ 172,616	$ 37,893
Number of preferred stock rights issued for each outstanding common share as a dividend (in rights)								1
Purchase of Portion of Series a Junior Participating Preferred Stock on Exercise of Right Issue, Numerator		1															1
Denominator for the ratio of Series A Junior Participating Preferred Stock to be purchased on exercise of right issue		1,000															1,000
Series A Junior Participating Preferred Stock, par value (in dollars per share)		$ 0.01															$ 0.01
Purchase price per one one-thousandth of a share of Series A Junior Participating Preferred Stock (in dollars per share)		$ 120.00															$ 120.00

XML

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2011

Summary of Significant Accounting Policies

Property, Plant and Equipment

Property, plant and equipment are stated at cost and depreciated using the straight-line method with the following useful lives:

Building and building improvements	5 to 40 years
Leasehold improvements	10 years or the life of the lease, whichever is shorter
Racking	2 to 20 years
Warehouse equipment	3 to 10 years
Vehicles	2 to 10 years
Furniture and fixtures	2 to 10 years
Computer hardware and software	3 to 5 years

        Property, plant and equipment (including capital leases in the respective category), at cost, consist of the following:

	December 31,
	2010		2011
Land	$	170,576	$	172,454
Buildings and building improvements		1,064,478		1,109,176
Leasehold improvements		469,324		474,965
Racking		1,368,218		1,420,180
Warehouse equipment/vehicles		362,663		355,951
Furniture and fixtures		76,971		79,193
Computer hardware and software		548,453		527,585
Construction in progress		100,727		93,090
	$	4,161,410	$	4,232,594

        Minor maintenance costs are expensed as incurred. Major improvements which extend the life, increase the capacity or improve the safety or the efficiency of property owned are capitalized. Major improvements to leased buildings are capitalized as leasehold improvements and depreciated.

        We develop various software applications for internal use. Computer software costs associated with internal use software are expensed as incurred until certain capitalization criteria are met. Payroll and related costs for employees who are directly associated with, and who devote time to, the development of internal use computer software projects (to the extent time is spent directly on the project) are capitalized and depreciated over the estimated useful life of the software. Capitalization begins when the design stage of the application has been completed and it is probable that the application will be completed and used to perform the function intended. Depreciation begins when the software is placed in service. Computer software costs that are capitalized are periodically evaluated for impairment. During the years ended December 31, 2009 and 2011, we wrote-off $600 (primarily in Corporate) and $3,500 (approximately $3,050 associated with our International Business segment and approximately $450 associated with our North American Business segment), respectively, of previously deferred software costs associated with internal use software development projects that were discontinued after implementation, which resulted in a loss on disposal/write-down of property, plant and equipment, net in the accompanying consolidated statement of operations.

        Entities are required to record the fair value of a liability for an asset retirement obligation in the period in which it is incurred. Asset retirement obligations represent the costs to replace or remove tangible long-lived assets required by law, regulatory rule or contractual agreement. When the liability is initially recorded, the entity capitalizes the cost by increasing the carrying amount of the related long-lived asset, which is then depreciated over the useful life of the related asset. The liability is increased over time through income such that the liability will equate to the future cost to retire the long-lived asset at the expected retirement date. Upon settlement of the liability, an entity either settles the obligation for its recorded amount or realizes a gain or loss upon settlement. Our obligations are primarily the result of requirements under our facility lease agreements which generally have "return to original condition" clauses which would require us to remove or restore items such as shred pits, vaults, demising walls and office build-outs, among others. The significant assumptions used in estimating our aggregate asset retirement obligation are the timing of removals, the probability of a requirement to perform, estimated cost and associated expected inflation rates that are consistent with historical rates and credit-adjusted risk-free rates that approximate our incremental borrowing rate.

        A reconciliation of liabilities for asset retirement obligations (included in other long-term liabilities) is as follows:

	December 31,
	2010			2011
Asset Retirement Obligations, beginning of the year	$	10,734		$	9,465
Liabilities Incurred		531			300
Liabilities Settled		(70	)		(774	)
Accretion Expense		1,254			1,327
Change in Probability Adjustment		(2,745	)		(176	)
Foreign Currency Exchange Movement		(239	)		(26	)
Asset Retirement Obligations, end of the year	$	9,465		$	10,116

Goodwill and Other Intangible Assets

       Goodwill and intangible assets with indefinite lives are not amortized but are reviewed annually for impairment or more frequently if impairment indicators arise. Other than goodwill, we currently have no intangible assets that have indefinite lives and which are not amortized. Separable intangible assets that are not deemed to have indefinite lives are amortized over their useful lives. We periodically assess whether events or circumstances warrant a change in the life over which our intangible assets are amortized.

        We have selected October 1 as our annual goodwill impairment review date. We performed our annual goodwill impairment review as of October 1, 2009, 2010 and 2011 and noted no impairment of goodwill. However, as a result of interim triggering events as discussed below, we recorded provisional goodwill impairment charges in each of the third quarters of 2010 and 2011 in conjunction with the Digital Sale and associated with our Western European operations, respectively. These provisional goodwill impairment charges were finalized in the fourth quarters of the 2010 and 2011 fiscal years, respectively. As of December 31, 2011, no factors were identified that would alter our October 1, 2011 goodwill assessment. In making this assessment, we relied on a number of factors including operating results, business plans, anticipated future cash flows, transactions and marketplace data. There are inherent uncertainties related to these factors and our judgment in applying them to the analysis of goodwill impairment. When changes occur in the composition of one or more reporting units, the goodwill is reassigned to the reporting units affected based on their relative fair values.

        As discussed at Note 14, we recorded a goodwill impairment charge in 2010 associated with our former worldwide digital business reporting unit. For the year ended December 31, 2010, we allocated $85,909 of this charge to the technology escrow services business based on a relative fair value basis. This charge continues to be included in our continuing results of operations as a component of intangible impairments in our consolidated statements of operations as we retained this business following the Digital Sale. Our technology escrow services business had previously been reported in the former worldwide digital business segment and is now reported in the North American Business segment.

        In September 2011, as a result of certain changes we made in the manner in which our European operations are managed, we reorganized our reporting structure and reassigned goodwill among the revised reporting units. Previously, we tested goodwill impairment at the European level on a combined basis. As a result of the management and reporting changes, we concluded that we have three reporting units for our European operations: (1) the United Kingdom, Ireland and Norway ("UKI"); (2) Belgium, France, Germany, Luxembourg, Netherlands and Spain ("Western Europe"); and (3) the remaining countries in Europe ("Central Europe"). Due to these changes, we will perform all future goodwill impairment analysis on the new reporting unit basis. As a result of the restructuring of our reporting units, we concluded that we had an interim triggering event, and, therefore, we performed an interim goodwill impairment test for UKI, Western Europe and Central Europe in the third quarter of 2011 as of August 31, 2011. As required by GAAP, prior to our goodwill impairment analysis, we performed an impairment assessment on the long-lived assets within our UKI, Western Europe and Central Europe reporting units and noted no impairment, except for the Italian Business, which was included in our Western Europe reporting unit, and which is now included in discontinued operations as discussed in Note 14. Based on our analyses, we concluded that the goodwill of our UKI and Central Europe reporting units was not impaired. Our UKI and Central Europe reporting units had fair values that exceed their carrying values by 15.1% and 4.9%, respectively, as of August 31, 2011. Central Europe is still in the investment stage and accordingly its fair value does not exceed its carrying value by a significant margin at this point in time. A deterioration of the UKI or Central Europe businesses or their failure to achieve the forecasted results could lead to impairments in future periods. Our Western Europe reporting unit's fair value was less than its carrying value, and, as a result, we recorded a goodwill impairment charge of $46,500 included as a component of intangible impairments from continuing operations in our consolidated statements of operations for the year ended December 31, 2011. A tax benefit of approximately $5,449 was recorded associated with the Western Europe goodwill impairment charge for the year ended December 31, 2011 and is included in the provision (benefit) for income taxes from continuing operations in the accompanying consolidated statement of operations. See Note 14 for the portion of the charge allocated to the Italian Business based on a relative fair value basis.

        Our reporting units at which level we performed our goodwill impairment analysis as of October 1, 2010 were as follows: North America; Europe; Latin America; Australia; Joint Ventures (which includes India, the various joint ventures in Southeast Asia and Russia (referred to as "Joint Ventures")); and Business Process Management ("BPM"). Given their similar economic characteristics, products, customers and processes, (1) the United Kingdom, Ireland and Norway and (2) the countries of Continental Europe (excluding Joint Ventures), each a reporting unit, have been aggregated as Europe and tested as one for goodwill impairment. As of December 31, 2010, the carrying value of goodwill, net amounted to $1,750,420, $438,344, $29,787 and $61,010 for North America, Europe, Latin America and Australia, respectively. Our Joint Ventures and BPM reporting units had no goodwill as of December 31, 2010. Our reporting units at which level we performed our goodwill impairment analysis as of October 1, 2011 were as follows: North America; UKI; Western Europe; Central Europe; Latin America; Australia; and Joint Ventures. As of December 31, 2011, the carrying value of goodwill, net amounted to $1,748,879, $306,150, $46,439, $63,781, $27,322, and $61,697 for North America, UKI, Western Europe, Central Europe, Latin America and Australia, respectively. Our Joint Ventures reporting unit has no goodwill as of December 31, 2011. Our North America, Latin America and Australia reporting units had estimated fair values as of October 1, 2011 that exceeded their carrying values by greater than 40%.

        Reporting unit valuations have been calculated using an income approach based on the present value of future cash flows of each reporting unit or a combined approach based on the present value of future cash flows and market and transaction multiples of revenues and earnings. The income approach incorporates many assumptions including future growth rates, discount factors, expected capital expenditures and income tax cash flows. Changes in economic and operating conditions impacting these assumptions could result in goodwill impairments in future periods. In conjunction with our annual goodwill impairment reviews, we reconcile the sum of the valuations of all of our reporting units to our market capitalization as of such dates.

        The changes in the carrying value of goodwill attributable to each reportable operating segment for the years ended December 31, 2010 and 2011 is as follows:

	North American Business			International Physical Business			Total Consolidated
Gross Balance as of December 31, 2009	$	1,996,959		$	565,717		$	2,562,676
Non-deductible goodwill acquired during the year		1,700			4,030			5,730
Adjustments to purchase reserves		(401	)		—			(401	)
Fair value and other adjustments(1)		2,553			164			2,717
Currency effects		11,238			(27,532	)		(16,294	)
Gross Balance as of December 31, 2010		2,012,049			542,379			2,554,428
Deductible goodwill acquired during the year		1,398			—			1,398
Non-deductible goodwill acquired during the year		—			35,207			35,207
Fair value and other adjustments(2)		2,161			(865	)		1,296
Currency effects		(5,367	)		(12,677	)		(18,044	)
Gross Balance as of December 31, 2011	$	2,010,241		$	564,044		$	2,574,285
Accumulated Amortization Balance as of December 31, 2009	$	175,158		$	14,199		$	189,357
Goodwill impairment		85,909			—			85,909
Currency effects		562			(961	)		(399	)
Accumulated Amortization Balance as of December 31, 2010		261,629			13,238			274,867
Goodwill impairment		—			46,500			46,500
Currency effects		(267	)		(1,083	)		(1,350	)
Accumulated Amortization Balance as of December 31, 2011	$	261,362		$	58,655		$	320,017
Net Balance as of December 31, 2009	$	1,821,801		$	551,518		$	2,373,319
Net Balance as of December 31, 2010	$	1,750,420		$	529,141		$	2,279,561
Net Balance as of December 31, 2011	$	1,748,879		$	505,389		$	2,254,268
Accumulated Goodwill Impairment Balance as of December 31, 2010	$	85,909		$	—		$	85,909
Accumulated Goodwill Impairment Balance as of December 31, 2011	$	85,909		$	46,500		$	132,409

(1)

Fair value and other adjustments primarily include $(711) of adjustments to property, plant and equipment, net, customer relationships and deferred income taxes, as well as $1,428 of cash paid related to prior year's acquisitions and $2,000 of contingent earn-out obligations accrued and unpaid as of December 31, 2010 related to a 2007 acquisition.

(2)

Fair value and other adjustments primarily include $(835) of adjustments to property, plant and equipment, net, customer relationships and deferred income taxes, as well as $131 of cash paid related to prior year's acquisitions and $2,000 of contingent earn-out obligations accrued and unpaid as of December 31, 2011 related to a 2007 acquisition.

Revenues

        Our revenues consist of storage revenues as well as service revenues and are reflected net of sales and value added taxes. Storage revenues, which are considered a key performance indicator for the information management services industry, consist primarily of recurring periodic charges related to the storage of materials or data (generally on a per unit basis). Service revenues are comprised of charges for related core service activities and a wide array of complementary products and services. Included in core service revenues are: (1) the handling of records, including the addition of new records, temporary removal of records from storage, refiling of removed records and the destruction of records; (2) courier operations, consisting primarily of the pickup and delivery of records upon customer request; (3) secure shredding of sensitive documents; and (4) other recurring services, including hybrid services and recurring project revenues. Our complementary services revenues include special project work, customer termination and permanent withdrawal fees, data restoration projects, fulfillment services, consulting services, technology services and product sales (including specially designed storage containers and related supplies). Our secure shredding revenues include the sale of recycled paper (included in complementary services revenues), the price of which can fluctuate from period to period, adding to the volatility and reducing the predictability of that revenue stream.

        We recognize revenue when the following criteria are met: persuasive evidence of an arrangement exists, services have been rendered, the sales price is fixed or determinable and collectability of the resulting receivable is reasonably assured. Storage and service revenues are recognized in the month the respective storage or service is provided, and customers are generally billed on a monthly basis on contractually agreed-upon terms. Amounts related to future storage or prepaid service contracts for customers where storage fees or services are billed in advance are accounted for as deferred revenue and recognized ratably over the applicable storage or service period or when the service is performed. Revenue from the sales of products, which is included as a component of service revenues, is recognized when products are shipped to the customer and title has passed to the customer. Revenues from the sales of products have historically not been significant.

Stock-Based Compensation

        We record stock-based compensation expense, utilizing the straight-line method, for the cost of stock options, restricted stock, restricted stock units, performance units and shares of stock issued under the employee stock purchase plan (together, "Employee Stock-Based Awards").

        Stock-based compensation expense for Employee Stock-Based Awards included in the accompanying consolidated statements of operations for the years ended December 31, 2009, 2010 and 2011 was $18,703, including $3,493 in discontinued operations, ($14,716 after tax or $0.07 per basic and diluted share), $20,378, including $3,104 in discontinued operations, ($15,672 after tax or $0.08 per basic and diluted share) and $17,510, including $260 in discontinued operations, ($8,834 after tax or $0.05 per basic and diluted share), respectively.

        Stock-based compensation expense for Employee Stock-Based Awards included in the accompanying consolidated statements of operations related to continuing operations is as follows:

	Year Ended December 31,
	2009		2010		2011
Cost of sales (excluding depreciation and amortization)	$	248	$	730	$	914
Selling, general and administrative expenses		14,962		16,544		16,336
Total stock-based compensation	$	15,210	$	17,274	$	17,250

        The benefits associated with the tax deductions in excess of recognized compensation cost are required to be reported as a financing cash flow. This requirement reduces reported operating cash flows and increases reported financing cash flows. As a result, net financing cash flows from continuing operations included $5,532, $2,252 and $919 for the years ended December 31, 2009, 2010 and 2011, respectively, from the benefits of tax deductions in excess of recognized compensation cost. The tax benefit of any resulting excess tax deduction increases the Additional Paid-in Capital ("APIC") pool. Any resulting tax deficiency is deducted from the APIC pool.

Stock Options

        Under our various stock option plans, options were granted with exercise prices equal to the market price of the stock on the date of grant. The majority of our options become exercisable ratably over a period of five years and generally have a contractual life of ten years, unless the holder's employment is sooner terminated. Certain of the options we issue become exercisable ratably over a period of ten years and have a contractual life of 12 years, unless the holder's employment is sooner terminated. As of December 31, 2011, ten-year vesting options represented 7.3% of total outstanding options. Beginning in 2011, certain of the options we issue become exercisable ratably over a period of three years and have a contractual life of ten years, unless the holder's employment is sooner terminated. As of December 31, 2011, three-year vesting options represented 11.0% of total outstanding options. Our non-employee directors are considered employees for purposes of our stock option plans and stock option reporting. Options granted to our non-employee directors generally become exercisable after one year.

        In December 2008, we amended each of the Iron Mountain Incorporated 2002 Stock Incentive Plan, the Iron Mountain Incorporated 1997 Stock Option Plan, the LiveVault Corporation 2001 Stock Incentive Plan and the Stratify, Inc. 1999 Stock Plan (each a "Plan" and, collectively, the "Plans") to provide that any unvested options and other awards granted under each respective Plan shall vest immediately should an employee be terminated by the Company, or terminate his or her own employment for good reason (as defined in each Plan), in connection with a vesting change in control (as defined in each Plan). The Mimosa Systems, Inc. 2009 Equity Incentive Plan and the Mimosa Systems, Inc. 2003 Stock Plan were similarly amended in June 2010.

        A total of 37,536,442 shares of common stock have been reserved for grants of options and other rights under our various stock incentive plans. The number of shares available for grant at December 31, 2011 was 7,112,835.

        The weighted average fair value of options granted in 2009, 2010 and 2011 was $9.72, $7.71 and $7.42 per share, respectively. These values were estimated on the date of grant using the Black-Scholes option pricing model. The following table summarizes the weighted average assumptions used for grants in the year ended December 31:

Weighted Average Assumptions	2009		2010		2011
Expected volatility		32.1%		32.8%		33.4%
Risk-free interest rate		2.64%		2.48%		2.40%
Expected dividend yield		None		1.2%		3%
Expected life		6.4 Years		6.4 Years		6.3 Years

        Expected volatility is calculated utilizing daily historical volatility over a period that equates to the expected life of the option. The risk-free interest rate was based on the U.S. Treasury interest rates whose term is consistent with the expected life of the stock options. Beginning in the first quarter of 2010, expected dividend yield was considered in the option pricing model as a result of our new dividend program. The expected life (estimated period of time outstanding) of the stock options granted is estimated using the historical exercise behavior of employees.

        A summary of option activity for the year ended December 31, 2011 is as follows:

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 31, 2010		12,140,560		$	24.30
Granted		1,077,648			28.60
Exercised		(3,753,905	)		21.78
Forfeited		(2,226,605	)		25.90
Expired		(119,240	)		27.72
Outstanding at December 31, 2011		7,118,458		$	25.73		6.72	$	38,002
Options exercisable at December 31, 2011		3,749,481		$	25.19		5.66	$	22,446
Options expected to vest		3,103,537		$	26.36		7.91	$	14,245

        The following table provides the aggregate intrinsic value of stock options exercised for the years ended December 31, 2009, 2010 and 2011:

	Year Ended December 31,
	2009		2010		2011
Aggregate intrinsic value of stock options exercised	$	18,929	$	12,063	$	37,901

Restricted Stock and Restricted Stock Units

        Under our various stock option plans, we may also issue grants of restricted stock or restricted stock units ("RSUs"). Our restricted stock and RSUs generally have a three to five year vesting period. The fair value of restricted stock and RSUs is the excess of the market price of our common stock at the date of grant over the purchase price (which is typically zero).

        A summary of restricted stock and RSUs activity for the year ended December 31, 2011 is as follows:

	Restricted Stock and RSUs			Weighted- Average Grant-Date Fair Value
Non-vested at December 31, 2010		168,221		$	22.53
Granted		609,743			29.77
Vested		(39,844	)		23.69
Forfeited		(127,169	)		26.53
Non-vested at December 31, 2011		610,951		$	28.85

        The total fair value of restricted stock vested for the years ended December 31, 2009, 2010 and 2011 was $0, $13 and $13, respectively. No RSUs vested during 2009 and 2010. The total fair value of RSUs vested for the year ended December 31, 2011 was $931.

Performance Units

        Under our various stock option plans, we may also issue grants of performance units ("PUs"). The number of PUs earned will be determined based on our performance against predefined targets, which for 2011 were calendar year revenue growth and return on invested capital ("ROIC"). The range of payout is zero to 150% of the number of granted PUs. The number of PUs earned will be determined based on actual performance at the end of the one-year performance period, and the award will be settled in shares of our common stock, subject to cliff vesting, three years from the date of the original PU grant. Additionally, employees who are employed through the one-year anniversary of the date of grant and who reach both 55 years of age and 10 years of qualifying service (the "retirement criteria") shall immediately and completely vest in any PUs earned based on the actual achievement against the predefined targets as discussed above. As a result, PUs will be expensed over the shorter of (a) achievement of the retirement criteria, which such achievement may occur as early as one year after the date of grant, or (b) a maximum of three years.

        In 2011, we issued 154,239 PUs. During the one-year performance period, we will forecast the likelihood of achieving the annual revenue growth and ROIC predefined targets in order to calculate the expected PUs to be earned. We will record a compensation charge based on either the forecasted PUs to be earned (during the one-year performance period) or the actual PUs earned (at the one-year anniversary date) over the vesting period for each individual grant as described above. The performance unit liability is remeasured at each fiscal quarter-end during the vesting period using the estimated percentage of units earned multiplied by the closing market price of our common stock on the current period-end date and is pro-rated based on the amount of time passed in the vesting period. As of December 31, 2011, we expected 99.6% achievement of the predefined revenue and ROIC targets associated with the grants made in 2011 and the closing market price of our common stock was $30.80.

        A summary of PU activity for the year ended December 31, 2011 is as follows:

	PUs
Non-vested at December 31, 2010		—
Granted		154,239
Vested		—
Forfeited		(41,490	)
Non-vested at December 31, 2011		112,749

Employee Stock Purchase Plan

        We offer an employee stock purchase plan (the "ESPP") in which participation is available to substantially all U.S. and Canadian employees who meet certain service eligibility requirements. The ESPP provides a way for our eligible employees to become stockholders on favorable terms. The ESPP provides for the purchase of our common stock by eligible employees through successive offering periods. We generally have two six-month offering periods per year, the first of which begins June 1 and ends November 30 and the second of which begins December 1 and ends May 31. During each offering period, participating employees accumulate after-tax payroll contributions, up to a maximum of 15% of their compensation, to pay the exercise price of their options. Participating employees may withdraw from an offering period before the purchase date and obtain a refund of the amounts withheld as payroll deductions. At the end of the offering period, outstanding options are exercised, and each employee's accumulated contributions are used to purchase our common stock. The price for shares purchased under the ESPP is 95% of the fair market price at the end of the offering period, without a look-back feature. As a result, we do not recognize compensation cost for the ESPP shares purchased. The ESPP was amended and approved by our stockholders on May 26, 2005 and the number of shares available for purchase under the ESPP was increased to 3,487,500. For the years ended December 31, 2009, 2010 and 2011, there were 258,680 shares, 257,381 shares and 154,559 shares, respectively, purchased under the ESPP. The number of shares available for purchase under the ESPP at December 31, 2011 was 399,761.

        As of December 31, 2011, unrecognized compensation cost related to the unvested portion of our Employee Stock-Based Awards was $40,454 and is expected to be recognized over a weighted-average period of 2.9 years.

        We generally issue shares for the exercises of stock options, restricted stock, RSUs, PUs and shares under our ESPP from unissued reserved shares.

Income Taxes

         Accounting for income taxes requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the tax and financial reporting basis of assets and liabilities and for loss and credit carryforwards. Valuation allowances are provided when recovery of deferred tax assets is not considered more likely than not. We have elected to recognize interest and penalties associated with uncertain tax positions as a component of the provision for income taxes in the accompanying consolidated statements of operations.

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 options, warrants or convertible securities) that were outstanding during the period, unless the effect is antidilutive.

        The following table presents the calculation of basic and diluted income (loss) per share:

	Year Ended December 31,
	2009			2010			2011
Income (Loss) from continuing operations	$	231,517		$	166,739		$	246,412
Total income (loss) from discontinued operations (see Note 14)	$	(12,138	)	$	(219,417	)	$	153,180
Net income (loss) attributable to Iron Mountain Incorporated	$	217,950		$	(57,586	)	$	395,538
Weighted-average shares—basic		202,812,000			201,991,000			194,777,000
Effect of dilutive potential stock options		1,458,777			—			1,060,477
Effect of dilutive potential restricted stock, RSUs and PUs		41			—			100,136
Weighted-average shares—diluted		204,270,818			201,991,000			195,937,613
Earnings (Losses) per share—basic:
Income (Loss) from continuing operations	$	1.14		$	0.83		$	1.27
Total income (loss) from discontinued operations (see Note 14)	$	(0.06	)	$	(1.09	)	$	0.79
Net income (loss) attributable to Iron Mountain Incorporated—basic	$	1.07		$	(0.29	)	$	2.03
Earnings (Losses) per share—diluted:
Income (Loss) from continuing operations	$	1.13		$	0.83		$	1.26
Total income (loss) from discontinued operations (see Note 14)	$	(0.06	)	$	(1.09	)	$	0.78
Net income (loss) attributable to Iron Mountain Incorporated—diluted	$	1.07		$	(0.29	)	$	2.02
Antidilutive stock options, RSUs and PUs, excluded from the calculation		8,085,784			9,305,328			3,973,760

Allowance for Doubtful Accounts and Credit Memo Reserves

        We maintain an allowance for doubtful accounts and credit memos for estimated losses resulting from the potential inability of our customers to make required payments and potential disputes regarding billing and service issues. When calculating the allowance, we consider our past loss experience, current and prior trends in our aged receivables and credit memo activity, current economic conditions and specific circumstances of individual receivable balances. If the financial condition of our customers were to significantly change, resulting in a significant improvement or impairment of their ability to make payments, an adjustment of the allowance may be required. We consider accounts receivable to be delinquent after such time as reasonable means of collection have been exhausted. We charge-off uncollectible balances as circumstances warrant, generally, no later than one year past due.

        Rollforward of allowance for doubtful accounts and credit memo reserves is as follows:

Year Ended December 31,	Balance at Beginning of the Year		Credit Memos Charged to Revenue		Allowance for Bad Debts Charged to Expense		Other(1)			Deductions(2)			Balance at End of the Year
2009	$	16,412	$	39,018	$	8,994	$	1,006		$	(45,835	)	$	19,595
2010		19,595		42,204		11,801		(481	)		(52,372	)		20,747
2011		20,747		39,343		9,506		(205	)		(46,114	)		23,277

(1)

Primarily consists of recoveries of previously written-off accounts receivable, allowances of businesses acquired and the impact associated with currency translation adjustments.

(2)

Primarily consists of the write-off of accounts receivable.

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Derivative Instruments and Hedging Activities (Details 3) In Thousands, unless otherwise specified	12 Months Ended									12 Months Ended
	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)	Dec. 31, 2011 The 6 3/4% notes USD ($)	Dec. 31, 2010 The 6 3/4% notes USD ($)	Dec. 31, 2009 The 6 3/4% notes USD ($)	Dec. 31, 2011 The 6 3/4% notes EUR (€)	Dec. 31, 2010 The 6 3/4% notes EUR (€)	Dec. 31, 2009 The 6 3/4% notes EUR (€)	Dec. 31, 2011 Foreign exchange contracts Other (income) expense, net USD ($)	Dec. 31, 2010 Foreign exchange contracts Other (income) expense, net USD ($)	Dec. 31, 2009 Foreign exchange contracts Other (income) expense, net USD ($)
Gains and losses on derivative instruments
Total (gain) loss recognized in income on derivatives	$ (1,209)	$ 2,025	$ 11,952							$ (1,209)	$ 2,025	$ 11,952
Net investment hedge
Stated Interest Rate (as a percent)				6.75%				6.75%	6.75%
Designated hedges of net investment (in Euros)							86,750	74,750	95,500
Foreign exchange gains (losses)				8,634	7,392	1,863
Foreign exchange gains (losses), net of tax				5,411	4,620	989
Net investment hedge gains (losses) recorded in accumulated other comprehensive items, net				$ 13,390

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Summary of Significant Accounting Policies (Details 6) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Summary of Significant Accounting Policies
Stock-based compensation expense, net of tax	$ 8,834	$ 15,672	$ 14,716
Stock-based compensation expense per basic and diluted share (in dollars per share)	$ 0.05	$ 0.08	$ 0.07
Stock based compensation expense
Stock based compensation	17,510	20,378	18,703
Excess tax benefits from stock-based compensation	919	2,252	5,532
Continuing Operations
Stock based compensation expense
Stock based compensation	17,250	17,274	15,210
Continuing Operations | Cost of sales (excluding depreciation and amortization)
Stock based compensation expense
Stock based compensation	914	730	248
Continuing Operations | Selling, general and administrative expenses
Stock based compensation expense
Stock based compensation	16,336	16,544	14,962
Discontinued Operations
Stock based compensation expense
Stock based compensation	$ 260	$ 3,104	$ 3,493

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Summary of Significant Accounting Policies (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 day month	Dec. 31, 2010	Dec. 31, 2009
Principles of Consolidation and Change in Accounting Principle
Reporting lag (in months)	2
Change in accounting principle due to change in subsidiary year-end, charge to other (income) expense		$ 4,711
Change in accounting principle due to change in subsidiary year-end, pro forma impact on operating income (loss)			3,714
Change in accounting principle due to change in subsidiary year-end, pro forma impact on income (loss) from continuing operations before provision (benefit) for income taxes			7,041
Change in accounting principle due to change in subsidiary year-end, pro forma impact on net income attributable to Iron Mountain Incorporated			4,957
Cash, Cash Equivalents and Restricted Cash
Cash and cash equivalents, maximum maturity period (in days)	90
Restricted cash	35,110	35,105
Foreign Currency
Foreign currency transaction gains (losses), net	$ (17,352)	$ (5,664)	$ 12,845
Derivative Instruments and Hedging Activities
Percentage of Debt Hedged by Interest Rate Derivatives	75.00%
The 7 1/4% notes
Long-term Debt Information
Stated Interest Rate (as a percent)	7.25%	7.25%	7.25%
The 6 3/4% notes
Long-term Debt Information
Stated Interest Rate (as a percent)	6.75%	6.75%	6.75%

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Debt (Details 2) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011
Maturities of long-term debt
2012	$ 73,320
2013	79,195
2014	321,177
2015	154,030
2016	652,318
Thereafter	2,079,155
Long-Term Gross	3,359,195
Net Premiums (Discounts)	(5,607)
Total Long-term Debt (including current portion)	$ 3,353,588

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Commitments and Contingencies (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 year	Dec. 31, 2010	Dec. 31, 2009
Commitments and Contingencies
Operating lease, leased facilities, term low end of range (in years)	5
Operating lease, leased facilities, term high end of range (in years)	10
Operating lease, leased facilities, renewal options	one or more five year
Operating lease, leased facilities, minimum number of renewal options	1
Operating lease, leased facilities, renewal option period	5
Operating lease (primarily computers), average lease life (in years)	3
Operating lease, vehicles and office equipment, minimum lease life (in years)	1
Operating lease, vehicles and office equipment, maximum lease life (in years)	7
Operating lease rent expense (including common area maintenance charges)	$ 242,954	$ 238,480	$ 240,944
Sublease income	2,974	2,721	4,126
Capital Leases
Capital Leases, 2012	51,490
Capital Leases, 2013	48,787
Capital Leases, 2014	31,837
Capital Leases, 2015	22,655
Capital Leases, 2016	17,450
Capital Leases, Thereafter	138,661
Capital Leases, Total minimum lease payments	310,880
Less amounts representing interest	(103,580)
Present value of capital lease obligations	207,300
Contractual obligations related to purchase commitments, 2012	31,852
Contractual obligations related to purchase commitments, 2013	11,546
Contractual obligations related to purchase commitments, 2014	8,800
Contractual obligations related to purchase commitments, 2015	982
Contractual obligations related to purchase commitments, 2016	343
Contractual obligations related to purchase commitments, thereafter	232
Operating Lease Payment
Operating Lease Payment, 2012	219,951
Operating Lease Payment, 2013	209,417
Operating Lease Payment, 2014	197,258
Operating Lease Payment, 2015	187,507
Operating Lease Payment, 2016	180,753
Operating Lease Payment, Thereafter	1,714,261
Operating Lease Payment, Total minimum lease payments	2,709,147
Sublease Income
Sublease Income, 2012	2,317
Sublease Income, 2013	1,932
Sublease Income, 2014	1,648
Sublease Income, 2015	1,629
Sublease Income, 2016	1,145
Sublease Income, Thereafter	1,934
Sublease Income, Total minimum lease payments	10,605
Italian Business
Operating Lease Payment
Operating Lease Payment, 2012	2,593
Operating Lease Payment, 2013	1,975
Operating Lease Payment, 2014	1,758
Operating Lease Payment, 2015	1,752
Operating Lease Payment, 2016	1,692
Operating Lease Payment, Thereafter	8,232
Operating Lease Payment, Total minimum lease payments	$ 18,002

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Income Taxes (Details 3) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Components of income (loss) before provision (benefit) for income taxes:
U.S.	$ 313,530	$ 272,806	$ 224,599
Canada	48,327	41,474	22,060
Foreign	(8,957)	19,942	98,620
Income (loss) from continuing operations before provision (benefit) for income taxes	352,900	334,222	345,279
Provision (benefit) for income taxes:
Federal-current	47,523	76,992	53,504
Federal-deferred	25,708	41,825	23,106
State-current	23,828	32,475	17,968
State-deferred	(1,093)	(851)	6,476
Foreign-current	31,748	20,350	11,955
Foreign-deferred	(21,226)	(3,308)	753
Provision (Benefit) for Income Taxes	106,488	167,483	113,762
Reconciliation of total income tax expense and applying the federal income tax rate to income before provision (benefit) for income taxes:
Computed "expected" tax provision	123,515	116,978	120,848
Changes in income taxes resulting from:
State taxes (net of federal tax benefit)	16,301	17,163	15,451
Increase in valuation allowance ( net operating losses)	12,601	(2)	1,416
Increase (Decrease) in valuation allowance (foreign tax credits)	(2,757)	39,547
Impairment of goodwill and divestitures	10,254	29,772
Reserve reversal and audit settlements	(32,989)	(41,753)
Foreign tax rate differential	(34,867)	(7,828)	(25,442)
United Kingdom thin cap, Subpart F Income and foreign restructuring	5,663	8,247	4,194
Other, net	8,767	5,359	(2,705)
Provision (Benefit) for Income Taxes	106,488	167,483	113,762
Overall effective tax rate (as a percent)	30.20%	50.10%	32.90%
Federal statutory tax rate (as a percent)	35.00%
Likelihood of largest amount of tax benefit being realized upon ultimate settlement (as a percent)	50.00%
Gross interest and penalties	(8,477)	(1,607)	4,749
Accrued for the payment of interest and penalties	$ 2,819	$ 11,610

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Summary of Significant Accounting Policies (Details 11) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Immaterial Restatement
Aggregate reduction in reported revenue									$ 17,000
Line items of consolidated statement of operations
Storage									1,682,990	1,598,718	1,533,792
Service									1,331,713	1,293,631	1,240,592
Total Revenues	741,837	768,306	758,551	746,009	729,168	725,649	718,536	718,996	3,014,703	2,892,349	2,774,384
Operating income (loss)	149,463	135,199	148,937	137,600	146,243	105,686	157,278	138,342	571,199	547,549	545,225
Income (loss) from continuing operations before provision (benefit) for income taxes									352,900	334,222	345,279
Provision (Benefit) for Income Taxes									106,488	167,483	113,762
Income (Loss) from Continuing Operations	47,382	50,394	67,460	81,176	57,930	27,202	49,252	32,355	246,412	166,739	231,517
Net Income (Loss)	34,001	37,925	253,047	74,619	33,256	(151,728)	40,817	24,977	399,592	(52,678)	219,379
Net Income (Loss) Attributable to Iron Mountain Incorporated	32,056	37,338	252,684	73,460	32,040	(154,687)	40,357	24,704	395,538	(57,586)	217,950
Earnings (Losses) per Share-Basic:
Income (Loss) from Continuing Operations (in dollars per share)	$ 0.26	$ 0.26	$ 0.33	$ 0.41	$ 0.29	$ 0.14	$ 0.24	$ 0.16	$ 1.27	$ 0.83	$ 1.14
Net Income (Loss) Attributable to Iron Mountain Incorporated (in dollars per share)	$ 0.18	$ 0.19	$ 1.25	$ 0.37	$ 0.16	$ (0.77)	$ 0.20	$ 0.12	$ 2.03	$ (0.29)	$ 1.07
Earnings (Losses) per Share-Diluted:
Income (Loss) from Continuing Operations (in dollars per share)	$ 0.26	$ 0.26	$ 0.33	$ 0.40	$ 0.29	$ 0.14	$ 0.24	$ 0.16	$ 1.26	$ 0.83	$ 1.13
Net Income (Loss) Attributable to Iron Mountain Incorporated (in dollars per share)	$ 0.18	$ 0.19	$ 1.24	$ 0.37	$ 0.16	$ (0.77)	$ 0.20	$ 0.12	$ 2.02	$ (0.29)	$ 1.07
Line items of consolidated balance sheet
Prepaid expenses and other	105,537				136,905				105,537	136,905
Total Current Assets	914,450				1,212,462				914,450	1,212,462
Total Assets	6,041,258				6,416,393				6,041,258	6,416,393	6,851,157
Deferred revenue	197,181				190,713				197,181	190,713
Total Current Liabilities	849,030				874,703				849,030	874,703
Retained earnings	902,567				685,310				902,567	685,310
Total Iron Mountain Incorporated Stockholders' Equity	1,245,688				1,945,448				1,245,688	1,945,448
Total Equity	1,254,256				1,952,865				1,254,256	1,952,865	2,150,760	1,814,769
Total Liabilities and Equity	6,041,258				6,416,393				6,041,258	6,416,393
Reduction in reported revenue
Immaterial Restatement
Cumulative impact, net of tax												3,784
Reduction in reported revenue | Adjustment
Line items of consolidated statement of operations
Storage										(2,955)	(2,327)
Service										(3,068)	(2,486)
Total Revenues										(6,023)	(4,813)
Operating income (loss)										(6,023)	(4,813)
Income (loss) from continuing operations before provision (benefit) for income taxes										(6,023)	(4,813)
Provision (Benefit) for Income Taxes										(2,337)	(1,886)
Income (Loss) from Continuing Operations										(3,686)	(2,927)
Net Income (Loss)										(3,686)	(2,927)
Net Income (Loss) Attributable to Iron Mountain Incorporated										(3,686)	(2,927)
Earnings (Losses) per Share-Basic:
Income (Loss) from Continuing Operations (in dollars per share)										$ (0.02)	$ (0.01)
Net Income (Loss) Attributable to Iron Mountain Incorporated (in dollars per share)										$ (0.02)	$ (0.01)
Earnings (Losses) per Share-Diluted:
Income (Loss) from Continuing Operations (in dollars per share)										$ (0.02)	$ (0.01)
Net Income (Loss) Attributable to Iron Mountain Incorporated (in dollars per share)										$ (0.02)	$ (0.01)
Line items of consolidated balance sheet
Prepaid expenses and other					6,660					6,660
Total Current Assets					6,660					6,660
Total Assets					6,660					6,660
Deferred revenue					17,057					17,057
Total Current Liabilities					17,057					17,057
Retained earnings					(10,397)					(10,397)
Total Iron Mountain Incorporated Stockholders' Equity					(10,397)					(10,397)
Total Equity					(10,397)					(10,397)
Total Liabilities and Equity					$ 6,660					$ 6,660

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Cash Flows from Operating Activities:
Net income (loss)	$ 399,592	$ (52,678)	$ 219,379
Loss (Income) from discontinued operations	47,439	219,417	12,138
(Gain) Loss on sale of discontinued operations	(200,619)
Adjustments to reconcile net income (loss) to cash flows from operating activities:
Depreciation	290,638	278,760	253,061
Amortization (includes deferred financing costs and bond discount of $5,117, $5,357 and $6,318 in 2009, 2010 and 2011, respectively)	35,179	30,802	29,242
Intangible impairments	46,500	85,909
Stock-based compensation expense	17,250	17,274	15,210
Provision for deferred income taxes	3,389	37,666	30,335
Loss (Gain) on early extinguishment of debt	993	1,792	3,031
Loss (Gain) on disposal/write-down of property, plant and equipment, net	(2,286)	(10,987)	168
Foreign currency transactions and other, net	24,298	18,043	(12,690)
Changes in Assets and Liabilities (exclusive of acquisitions):
Accounts receivable	(20,799)	11,793	(14,897)
Prepaid expenses and other current assets	5,299	(8,811)	(22,052)
Accounts payable	7,069	(547)	10,180
Accrued expenses, deferred revenue and other current liabilities	15,629	(38,072)	45,200
Other assets and long-term liabilities	(6,057)	12,868	18,265
Cash Flows from Operating Activities-Continuing Operations	663,514	603,229	586,570
Cash Flows from Operating Activities-Discontinued Operations	(48,076)	21,911	30,341
Cash Flows from Operating Activities	615,438	625,140	616,911
Cash Flows from Investing Activities:
Capital expenditures	(209,155)	(258,849)	(287,917)
Cash paid for acquisitions, net of cash acquired	(75,246)	(13,841)	(1,518)
Investment in restricted cash	(5)	(35,102)
Additions to customer relationship and acquisition costs	(21,703)	(13,202)	(10,741)
Investment in joint ventures	(335)		(3,114)
Proceeds from sales of property and equipment and other, net	4,231	22,536	4,591
Cash Flows from Investing Activities-Continuing Operations	(302,213)	(298,458)	(298,699)
Cash Flows from Investing Activities-Discontinued Operations	380,721	(134,212)	(25,367)
Cash Flows from Investing Activities	78,508	(432,670)	(324,066)
Cash Flows from Financing Activities:
Repayment of revolving credit and term loan facilities and other debt	(2,017,174)	(101,884)	(283,318)
Proceeds from revolving credit and term loan facilities and other debt	2,170,979	53,567	33,944
Early retirement of senior subordinated notes	(231,255)	(202,584)	(447,874)
Net proceeds from sales of senior subordinated notes	394,000		539,688
Debt financing (repayment to) and equity contribution from (distribution to) noncontrolling interests, net	698	169	1,064
Stock repurchases	(984,953)	(111,563)
Parent cash dividends	(172,616)	(37,893)
Proceeds from exercise of stock options and employee stock purchase plan	85,742	18,225	24,233
Excess tax benefits from stock-based compensation	919	2,252	5,532
Payment of debt financing costs	(9,010)		(1,555)
Cash Flows from Financing Activities-Continuing Operations	(762,670)	(379,711)	(128,286)
Cash Flows from Financing Activities-Discontinued Operations	(1,138)	(1,523)	(1,406)
Cash Flows from Financing Activities	(763,808)	(381,234)	(129,692)
Effect of Exchange Rates on Cash and Cash Equivalents	(8,986)	801	5,133
Increase (Decrease) in Cash and Cash Equivalents	(78,848)	(187,963)	168,286
Cash and Cash Equivalents, Beginning of Period	258,693	446,656	278,370
Cash and Cash Equivalents, End of Period	179,845	258,693	446,656
Supplemental Information:
Cash Paid for Interest	203,035	226,463	216,673
Cash Paid for Income Taxes	147,998	139,072	87,062
Non-Cash Investing and Financing Activities:
Capital Leases	30,090	30,367	72,120
Accrued Capital Expenditures	43,696	41,222	53,701
Dividends Payable	43,180	37,514
Unsettled Purchases of Parent Common Stock	$ 3,364

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Income Taxes (Details 4) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 year	Dec. 31, 2010	Dec. 31, 2009
Income Taxes
Normal statute of limitation Period, federal tax purpose (in years)	3
Maximum period of examination available to U.S. government for federal income tax return due to net operating loss position (in years)	3
Reconciliation of unrecognized tax benefits:
Balance at the beginning of the period	$ 59,891	$ 88,155	$ 84,566
Gross additions based on tax positions related to the current year	6,593	6,575	3,166
Gross additions for tax positions of prior years	6,437	9,759	5,693
Gross reductions for tax positions of prior years	(30,316)	(3,349)	(720)
Lapses of statutes	(6,268)	(33,001)	(4,460)
Settlements	(4,929)	(8,248)	(90)
Balance at the end of the period	31,408	59,891	88,155
Unrecognized tax benefits, net of federal tax benefit	23,514
Unrecognized tax position, if recognized, that would affect the effective tax rate	$ 10,688
Minimum
Income Taxes
Normal Statute of Limitation Period for State Tax Purpose (in years)	3
Maximum
Income Taxes
Normal Statute of Limitation Period for State Tax Purpose (in years)	5

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Summary of Significant Accounting Policies (Details 7) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 month period	Dec. 31, 2010	Dec. 31, 2009	May 26, 2005
Employee stock-based awards
Total shares authorized for grant	37,536,442
Remaining number of shares available for grant	7,112,835
Share-Based Compensation, aggregate disclosures
Employee stock-based awards, unrecognized compensation costs on nonvested awards	40,454
Employee stock-based awards, unrecognized compensation costs on nonvested awards, weighted average period of recognition (in years)	2.9
Stock Options
Employee stock-based awards
Weighted average fair value of options granted (in dollars per share)	7.42	7.71	9.72
Weighted average assumptions used for grants
Expected volatility (as a percent)	33.40%	32.80%	32.10%
Risk-free interest rate (as a percent)	2.40%	2.48%	2.64%
Expected dividend yield (as a percent)	3.00%	1.20%
Expected life of the option (in years)	6.3	6.4	6.4
Summary of option activity
Options outstanding balance, beginning of period (in shares)	12,140,560
Options granted (in shares)	1,077,648
Options exercised (in shares)	(3,753,905)
Options forfeited (in shares)	(2,226,605)
Options expired (in shares)	(119,240)
Options outstanding balance, end of period (in shares)	7,118,458	12,140,560
Options exercisable balance (in shares)	3,749,481
Options expected to vest (in shares)	3,103,537
Weighted Average Exercise Price
Weighted average exercise price, options outstanding balance beginning of period (in dollars per share)	24.30
Weighted average exercise price, options granted (in dollars per share)	28.60
Weighted average exercise price, options exercised (in dollars per share)	21.78
Weighted average exercise price, options forfeited (in dollars per share)	25.90
Weighted average exercise price, options expired (in dollars per share)	27.72
Weighted average exercise price, options outstanding balance end of period (in dollars per share)	25.73	24.30
Weighted average exercise price, options exercisable (in dollars per share)	25.19
Weighted average exercise price, options expected to vest (in dollars per share)	26.36
Weighted average remaining contractual term
Weighted average remaining contractual term, options outstanding (in years)	6.72
Weighted average remaining contractual term, options exercisable (in years)	5.66
Weighted average remaining contractual term, options expected to vest (in years)	7.91
Aggregate intrinsic value
Aggregate intrinsic value, options outstanding	38,002
Aggregate intrinsic value, options exercisable	22,446
Aggregate intrinsic value of stock options exercised
Aggregate intrinsic value of stock options exercised	37,901	12,063	18,929
Award Vesting
Aggregate intrinsic value, options expected to vest	14,245
Stock Options | Director
Employee stock-based awards
Award vesting period (in years)	1 year
Majority of stock options
Employee stock-based awards
Award vesting period (in years)	5 years
Contractual term of awards	P10Y
Certain options beginning in 2011
Employee stock-based awards
Award vesting period (in years)	3 years
Contractual term of awards	P10Y
Certain options as a percentage of total outstanding options	11.00%
A portion of stock options effective 2007
Employee stock-based awards
Award vesting period (in years)	10 years
Contractual term of awards	P12Y
Certain options as a percentage of total outstanding options	7.30%
Employee Stock Purchase Plan
Employee stock-based awards
Total shares authorized for grant				3,487,500
Remaining number of shares available for grant	399,761
Employee Stock Purchase Plan
Employee stock purchase plan, number of offering periods	2
Employee stock purchase plan, duration of offering periods	6
Employee stock purchase plan, maximum employee subscription rate percent (as a percent)	15.00%
Percentage of market price for the purchase of shares	95.00%
Employee stock purchase plan, shares issued in period (in shares)	154,559	257,381	258,680
Restricted Stock and Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options
Non-vested at the beginning of the period (in shares)	168,221
Granted (in shares)	609,743
Vested (in shares)	(39,844)
Forfeited (in shares)	(127,169)
Non-vested at the end of the period (in shares)	610,951
Excess of the market price of the Company's common stock at the grant date over the purchase price (in dollars per share)	0.00
Weighted average grant date fair value
Weighted average grant date fair value, non-vested, beginning of period (in dollars per share)	22.53
Weighted average grant date fair value, granted (in dollars per share)	29.77
Weighted average grant date fair value, vested (in dollars per share)	23.69
Weighted average grant date fair value, forfeited (in dollars per share)	26.53
Weighted average grant date fair value, non-vested, end of period (in dollars per share)	28.85
Restricted Stock and Restricted Stock Units | Maximum
Employee stock-based awards
Award vesting period (in years)	5 years
Restricted Stock and Restricted Stock Units | Minimum
Employee stock-based awards
Award vesting period (in years)	3 years
Restricted Stock Plan
Weighted average grant date fair value
Total fair value of shares or units vested	13	13	0
Restricted Stock Units
Weighted average grant date fair value
Total fair value of shares or units vested	931
Performance units
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options
Granted (in shares)	154,239
Forfeited (in shares)	(41,490)
Non-vested at the end of the period (in shares)	112,749
Award Vesting
Award vesting period, minimum (in years)	P1Y
Award vesting period, maximum (in years)	P3Y
Performance units disclosure
Performance period (in years)	1
Period of anniversary from the date of grant (in years)	1
Qualifying age for grant of performance units (in years)	55
Qualifying service period (in years)	10 years
Percentage of achievement of the predefined revenue and ROIC targets	99.60%
Closing market price of common stock (in dollars per share)	30.80
Performance units | Maximum
Performance units disclosure
Percentage payout rate	150.00%
Performance units | Minimum
Performance units disclosure
Percentage payout rate	0.00%

XML

Selected Consolidated Financial Statements of Parent, Guarantors, Canada Company and Non-Guarantors (Tables)

12 Months Ended

Dec. 31, 2011

Selected Consolidated Financial Statements of Parent, Guarantors, Canada Company and Non-Guarantors

Selected consolidated Balance sheet statements of Parent, Guarantors, Canada Company and Non-Guarantors

	December 31, 2010
	Parent		Guarantors		Canada Company		Non- Guarantors		Eliminations			Consolidated
Assets
Current Assets:
Cash and Cash Equivalents	$	13,909	$	121,584	$	37,652	$	85,548	$	—		$	258,693
Restricted Cash		35,105		—		—		—		—			35,105
Accounts Receivable		—		327,842		41,562		154,922		—			524,326
Intercompany Receivable		1,344,802		—		9,281		—		(1,354,083	)		—
Assets of Discontinued Operations		—		184,790		—		28,418		—			213,208
Other Current Assets		2,601		128,341		10,878		39,310		—			181,130
Total Current Assets		1,396,417		762,557		99,373		308,198		(1,354,083	)		1,212,462
Property, Plant and Equipment, Net		—		1,522,073		208,020		738,151		—			2,468,244
Other Assets, Net:
Long-term Notes Receivable from Affiliates and Intercompany Receivable		1,381,546		1,000		—		—		(1,382,546	)		—
Investment in Subsidiaries		1,853,560		1,599,133		—		—		(3,452,693	)		—
Goodwill		—		1,525,960		203,345		550,256		—			2,279,561
Other		27,304		236,497		13,601		159,352		(114	)		436,640
Assets of Discontinued Operations		—		—		—		19,486		—			19,486
Total Other Assets, Net		3,262,410		3,362,590		216,946		729,094		(4,835,353	)		2,735,687
Total Assets	$	4,658,827	$	5,647,220	$	524,339	$	1,775,443	$	(6,189,436	)	$	6,416,393
Liabilities and Equity
Intercompany Payable	$	—	$	1,325,593	$	—	$	28,490	$	(1,354,083	)	$	—
Current Portion of Long-term Debt		56,407		24,393		2,606		12,675		—			96,081
Total Other Current Liabilities		92,339		405,299		42,614		176,896		—			717,148
Liabilities of Discontinued Operations		—		53,374		—		8,100		—			61,474
Long-term Debt, Net of Current Portion		2,559,780		67,504		191,010		93,832		—			2,912,126
Long-term Notes Payable to Affiliates and Intercompany Payable		1,000		1,381,546		—		—		(1,382,546	)		—
Other Long-term Liabilities		3,853		551,961		27,585		91,644		(114	)		674,929
Liabilities of Discontinued Operations		—		—		—		1,770		—			1,770
Commitments and Contingencies (See Note 10)
Total Iron Mountain Incorporated Stockholders' Equity		1,945,448		1,837,550		260,524		1,354,619		(3,452,693	)		1,945,448
Noncontrolling Interests		—		—		—		7,417		—			7,417
Total Equity		1,945,448		1,837,550		260,524		1,362,036		(3,452,693	)		1,952,865
Total Liabilities and Equity	$	4,658,827	$	5,647,220	$	524,339	$	1,775,443	$	(6,189,436	)	$	6,416,393

	December 31, 2011
	Parent		Guarantors		Canada Company		Non- Guarantors		Eliminations			Consolidated
Assets
Current Assets:
Cash and Cash Equivalents	$	3,428	$	10,750	$	68,907	$	96,760	$	—		$	179,845
Restricted Cash		35,110		—		—		—		—			35,110
Accounts Receivable		—		334,658		40,115		168,694		—			543,467
Intercompany Receivable		905,451		—		4,639		—		(910,090	)		—
Assets of Discontinued Operations		—		—		—		7,256		—			7,256
Other Current Assets		2,016		103,899		3,323		40,538		(1,004	)		148,772
Total Current Assets		946,005		449,307		116,984		313,248		(911,094	)		914,450
Property, Plant and Equipment, Net		1,490		1,480,785		200,755		724,053		—			2,407,083
Other Assets, Net:
Long-term Notes Receivable from Affiliates and Intercompany Receivable		928,182		1,000		2,961		15,010		(947,153	)		—
Investment in Subsidiaries		1,828,712		1,563,690		—		—		(3,392,402	)		—
Goodwill		—		1,529,359		196,989		527,920		—			2,254,268
Other		27,226		240,557		9,804		187,870					465,457
Total Other Assets, Net		2,784,120		3,334,606		209,754		730,800		(4,339,555	)		2,719,725
Total Assets	$	3,731,615	$	5,264,698	$	527,493	$	1,768,101	$	(5,250,649	)	$	6,041,258
Liabilities and Equity
Intercompany Payable	$	—	$	856,808	$	—	$	53,282	$	(910,090	)	$	—
Current Portion of Long-term Debt		658		46,967		2,658		23,037		—			73,320
Total Other Current Liabilities		100,921		453,648		31,407		187,421		(1,004	)		772,393
Liabilities of Discontinued Operations		—		—		—		3,317		—			3,317
Long-term Debt, Net of Current Portion		2,378,040		630,118		185,953		86,157		—			3,280,268
Long-term Notes Payable to Affiliates and Intercompany Payable		1,000		946,153		—		—		(947,153	)		—
Other Long-term Liabilities		5,308		528,897		31,418		92,081					657,704
Commitments and Contingencies (See Note 10)
Total Iron Mountain Incorporated Stockholders' Equity		1,245,688		1,802,107		276,057		1,314,238		(3,392,402	)		1,245,688
Noncontrolling Interests		—		—		—		8,568		—			8,568
Total Equity		1,245,688		1,802,107		276,057		1,322,806		(3,392,402	)		1,254,256
Total Liabilities and Equity	$	3,731,615	$	5,264,698	$	527,493	$	1,768,101	$	(5,250,649	)	$	6,041,258

Selected consolidated Income statement of Parent, Guarantors, Canada Company and Non-Guarantors

	Year Ended December 31, 2009
	Parent			Guarantors			Canada Company			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage	$	—		$	1,094,221		$	93,244		$	346,327		$	—		$	1,533,792
Service		—			822,907			96,764			320,921			—			1,240,592
Total Revenues		—			1,917,128			190,008			667,248			—			2,774,384
Operating Expenses:
Cost of Sales (Excluding Depreciation and Amortization)		—			778,296			80,205			343,370			—			1,201,871
Selling, General and Administrative		92			523,698			32,127			194,017			—			749,934
Depreciation and Amortization		231			189,990			15,717			71,248			—			277,186
Loss (Gain) on Disposal/Write-down of Property, Plant and Equipment, Net		—			1,205			123			(1,160	)		—			168
Total Operating Expenses		323			1,493,189			128,172			607,475			—			2,229,159
Operating (Loss) Income		(323	)		423,939			61,836			59,773			—			545,225
Interest Expense (Income), Net		202,947			(41,320	)		42,066			8,852			—			212,545
Other Expense (Income), Net		44,642			(5,131	)		(2	)		(52,108	)		—			(12,599	)
(Loss) Income from Continuing Operations
Before Provision (Benefit) for Income Taxes		(247,912	)		470,390			19,772			103,029			—			345,279
Provision (Benefit) for Income Taxes		—			100,409			3,624			9,729			—			113,762
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax		(465,862	)		(102,601	)		—			—			568,463			—
Income (Loss) from Continuing Operations		217,950			472,582			16,148			93,300			(568,463	)		231,517
(Loss) Income from Discontinued Operations		—			(10,168	)		—			(1,970	)		—			(12,138	)
Net Income (Loss)		217,950			462,414			16,148			91,330			(568,463	)		219,379
Less: Net Income (Loss) Attributable to Noncontrolling Interests		—			—			—			1,429			—			1,429
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	217,950		$	462,414		$	16,148		$	89,901		$	(568,463	)	$	217,950

	Year Ended December 31, 2010
	Parent			Guarantors			Canada Company		Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage	$	—		$	1,113,674		$	110,768	$	374,276		$	—		$	1,598,718
Service		—			836,443			113,498		343,690			—			1,293,631
Total Revenues		—			1,950,117			224,266		717,966			—			2,892,349
Operating Expenses:
Cost of Sales (Excluding Depreciation and Amortization)		—			746,479			86,352		360,031			—			1,192,862
Selling, General and Administrative		68			516,664			36,587		219,492			—			772,811
Depreciation and Amortization		223			201,534			18,818		83,630			—			304,205
Intangible Impairments		—			84,611			—		1,298			—			85,909
(Gain) Loss on Disposal/Write-down of Property, Plant and Equipment, Net		—			(1,039	)		196		(10,144	)		—			(10,987	)
Total Operating Expenses		291			1,548,249			141,953		654,307			—			2,344,800
Operating (Loss) Income		(291	)		401,868			82,313		63,659			—			547,549
Interest Expense (Income), Net		194,689			(41,770	)		44,898		6,742			—			204,559
Other (Income) Expense, Net		(22,662	)		(1,882	)		18		33,294			—			8,768
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes		(172,318	)		445,520			37,397		23,623			—			334,222
Provision (Benefit) for Income Taxes		—			151,329			11,142		5,012			—			167,483
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax		(114,732	)		(34,014	)		—		—			148,746			—
(Loss) Income from Continuing Operations		(57,586	)		328,205			26,255		18,611			(148,746	)		166,739
(Loss) Income from Discontinued Operations		—			(215,479	)		—		(3,938	)		—			(219,417	)
Net (Loss) Income		(57,586	)		112,726			26,255		14,673			(148,746	)		(52,678	)
Less: Net Income (Loss) Attributable to Noncontrolling Interests		—			—			—		4,908			—			4,908
Net (Loss) Income Attributable to Iron Mountain Incorporated	$	(57,586	)	$	112,726		$	26,255	$	9,765		$	(148,746	)	$	(57,586	)

	Year Ended December 31, 2011
	Parent			Guarantors			Canada Company			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage	$	—		$	1,132,743		$	120,476		$	429,771		$	—		$	1,682,990
Service		—			833,652			115,973			382,088			—			1,331,713
Total Revenues		—			1,966,395			236,449			811,859			—			3,014,703
Operating Expenses:
Cost of Sales (Excluding Depreciation and Amortization)		2,000			760,300			91,249			391,651			—			1,245,200
Selling, General and Administrative		(1,885	)		548,848			38,965			248,663			—			834,591
Depreciation and Amortization		457			192,551			18,685			107,806			—			319,499
Intangible Impairments		—			—			—			46,500			—			46,500
(Gain) Loss on Disposal/Write-down of Property, Plant and Equipment, Net		—			(1,120	)		(420	)		(746	)		—			(2,286	)
Total Operating Expenses		572			1,500,579			148,479			793,874			—			2,443,504
Operating (Loss) Income		(572	)		465,816			87,970			17,985			—			571,199
Interest Expense (Income), Net		173,738			(24,055	)		44,559			11,014			—			205,256
Other (Income) Expense, Net		(3,944	)		7,561			315			9,111			—			13,043
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes		(170,366	)		482,310			43,096			(2,140	)		—			352,900
Provision (Benefit) for Income Taxes		—			86,139			20,681			(332	)		—			106,488
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax		(565,904	)		23,069			—			—			542,835			—
Income (Loss) from Continuing Operations		395,538			373,102			22,415			(1,808	)		(542,835	)		246,412
(Loss) Income from Discontinued Operations		—			(17,350	)		—			(30,089	)		—			(47,439	)
Gain (Loss) on Sale of Discontinued Operations		—			198,735			—			1,884			—			200,619
Net (Loss) Income		395,538			554,487			22,415			(30,013	)		(542,835	)		399,592
Less: Net Income (Loss) Attributable to Noncontrolling Interests		—			—			—			4,054			—			4,054
Net (Loss) Income Attributable to Iron Mountain Incorporated	$	395,538		$	554,487		$	22,415		$	(34,067	)	$	(542,835	)	$	395,538

Selected consolidated cash flow statement of Parent, Guarantors, Canada Company and Non-Guarantors

	Year Ended December 31, 2009
	Parent			Guarantors			Canada Company			Non- Guarantors			Eliminations			Consolidated
Cash Flows from Operating Activities:
Cash Flows from Operating Activities-Continuing Operations	$	(186,314	)	$	602,593		$	38,154		$	132,137		$	—		$	586,570
Cash Flows from Operating Activities-Discontinued Operations		—			31,470			—			(1,129	)		—			30,341
Cash Flows from Operating Activities		(186,314	)		634,063			38,154			131,008			—			616,911
Cash Flows from Investing Activities:
Capital expenditures		—			(153,995	)		(22,042	)		(111,880	)		—			(287,917	)
Cash paid for acquisitions, net of cash acquired		—			(256	)		—			(1,262	)		—			(1,518	)
Intercompany loans to subsidiaries		284,604			17,807			—			—			(302,411	)		—
Investment in subsidiaries		(164,256	)		(164,256	)		—			—			328,512			—
Additions to customer relationship and acquisition costs		—			(6,711	)		(520	)		(3,510	)		—			(10,741	)
Investments in joint ventures		—			—			—			(3,114	)		—			(3,114	)
Proceeds from sales of property and equipment and other, net		—			3,717			45			829			—			4,591
Cash Flows from Investing Activities-Continuing Operations		120,348			(303,694	)		(22,517	)		(118,937	)		26,101			(298,699	)
Cash Flows from Investing Activities-Discontinued Operations		—			(20,261	)		—			(5,106	)		—			(25,367	)
Cash Flows from Investing Activities		120,348			(323,955	)		(22,517	)		(124,043	)		26,101			(324,066	)
Cash Flows from Financing Activities:
Repayment of revolving credit and term loan facilities and other debt		(54,150	)		(18,438	)		(192,097	)		(18,633	)		—			(283,318	)
Proceeds from revolving credit and term loan facilities and other debt		—			—			—			33,944			—			33,944
Early retirement of senior subordinated notes		(447,874	)		—			—			—			—			(447,874	)
Net proceeds from sale of senior subordinated notes		539,688			—			—			—			—			539,688
Debt financing (repayment to) and equity contribution from (distribution to) noncontrolling interests, net		—			—			—			1,064			—			1,064
Intercompany loans from parent		—			(283,974	)		5,751			(24,188	)		302,411			—
Equity contribution from parent		—			164,256			156,655			7,601			(328,512	)		—
Proceeds from exercise of stock options and employee stock purchase plan		24,233			—			—			—			—			24,233
Excess tax benefits from stock-based compensation		5,532			—			—			—			—			5,532
Payment of debt financing costs		(1,463	)		—			(37	)		(55	)		—			(1,555	)
Cash Flows from Financing Activities-Continuing Operations		65,966			(138,156	)		(29,728	)		(267	)		(26,101	)		(128,286	)
Cash Flows from Financing Activities-Discontinued Operations		—			—			—			(1,406	)		—			(1,406	)
Cash Flows from Financing Activities		65,966			(138,156	)		(29,728	)		(1,673	)		(26,101	)		(129,692	)
Effect of exchange rates on cash and cash equivalents		—			—			928			4,205			—			5,133
Increase (Decrease) in cash and cash equivalents		—			171,952			(13,163	)		9,497			—			168,286
Cash and cash equivalents, beginning of period		—			210,636			17,069			50,665			—			278,370
Cash and cash equivalents, end of period	$	—		$	382,588		$	3,906		$	60,162		$	—		$	446,656

	Year Ended December 31, 2010
	Parent			Guarantors			Canada Company			Non- Guarantors			Eliminations			Consolidated
Cash Flows from Operating Activities:
Cash Flows from Operating Activities-Continuing Operations	$	(180,588	)	$	578,159		$	56,113		$	149,545		$	—		$	603,229
Cash Flows from Operating Activities-Discontinued Operations		—			19,347			—			2,564			—			21,911
Cash Flows from Operating Activities		(180,588	)		597,506			56,113			152,109			—			625,140
Cash Flows from Investing Activities:
Capital expenditures		—			(137,937	)		(16,593	)		(104,319	)		—			(258,849	)
Cash paid for acquisitions, net of cash acquired		—			(1,970	)		(3,705	)		(8,166	)		—			(13,841	)
Intercompany loans to subsidiaries		577,316			34,465			—			—			(611,781	)		—
Investment in subsidiaries		(10,258	)		(35,124	)		—			—			45,382			—
Investment in restricted cash		(35,102	)		—			—			—			—			(35,102	)
Additions to customer relationship and acquisition costs		—			(9,332	)		(594	)		(3,276	)		—			(13,202	)
Proceeds from sales of property and equipment and other, net		—			5,867			93			16,576			—			22,536
Cash Flows from Investing Activities-Continuing Operations		531,956			(144,031	)		(20,799	)		(99,185	)		(566,399	)		(298,458	)
Cash Flows from Investing Activities-Discontinued Operations		(1,796	)		(129,972	)		—			(6,036	)		3,592			(134,212	)
Cash Flows from Investing Activities		530,160			(274,003	)		(20,799	)		(105,221	)		(562,807	)		(432,670	)
Cash Flows from Financing Activities:
Repayment of revolving credit and term loan facilities and other debt		(4,100	)		(24,226	)		(2,504	)		(71,054	)		—			(101,884	)
Proceeds from revolving credit and term loan facilities and other debt		—			—			—			53,567			—			53,567
Early retirement of senior subordinated notes		(202,584	)		—			—			—			—			(202,584	)
Debt financing (repayment to) and equity contribution from (distribution to) noncontrolling interests, net		—			—			—			169			—			169
Intercompany loans from parent		—			(572,335	)		122			(39,568	)		611,781			—
Equity contribution from parent		—			10,258			—			35,124			(45,382	)		—
Stock repurchases		(111,563	)		—			—			—			—			(111,563	)
Parent cash dividends		(37,893	)		—			—			—			—			(37,893	)
Proceeds from exercise of stock options and employee stock purchase plan		18,225			—			—			—			—			18,225
Excess tax benefits from stock-based compensation		2,252			—			—			—			—			2,252
Cash Flows from Financing Activities-Continuing Operations		(335,663	)		(586,303	)		(2,382	)		(21,762	)		566,399			(379,711	)
Cash Flows from Financing Activities-Discontinued Operations		—			1,796			—			273			(3,592	)		(1,523	)
Cash Flows from Financing Activities		(335,663	)		(584,507	)		(2,382	)		(21,489	)		562,807			(381,234	)
Effect of exchange rates on cash and cash equivalents		—			—			814			(13	)		—			801
Increase (Decrease) in cash and cash equivalents		13,909			(261,004	)		33,746			25,386			—			(187,963	)
Cash and cash equivalents, beginning of period		—			382,588			3,906			60,162			—			446,656
Cash and cash equivalents, end of period	$	13,909		$	121,584		$	37,652		$	85,548		$	—		$	258,693

	Year Ended December 31, 2011
	Parent			Guarantors			Canada Company			Non- Guarantors			Eliminations			Consolidated
Cash Flows from Operating Activities:
Cash Flows from Operating Activities-Continuing Operations	$	(162,478	)	$	698,033		$	45,232		$	82,727		$	—		$	663,514
Cash Flows from Operating Activities-Discontinued Operations		—			(47,166	)		—			(910	)		—			(48,076	)
Cash Flows from Operating Activities		(162,478	)		650,867			45,232			81,817			—			615,438
Cash Flows from Investing Activities:
Capital expenditures		—			(114,768	)		(14,155	)		(80,232	)		—			(209,155	)
Cash paid for acquisitions, net of cash acquired		—			(5,378	)		(58	)		(69,810	)		—			(75,246	)
Intercompany loans to subsidiaries		1,469,788			(83,385	)		—			—			(1,386,403	)		—
Investment in subsidiaries		(12,595	)		(12,595	)		—			—			25,190			—
Investment in restricted cash		(5	)		—			—			—			—			(5	)
Additions to customer relationship and acquisition costs		—			(15,700	)		(462	)		(5,541	)		—			(21,703	)
Investment in joint ventures		—			—			—			(335	)		—			(335	)
Proceeds from sales of property and equipment and other, net		—			363			66			3,802			—			4,231
Cash Flows from Investing Activities-Continuing Operations		1,457,188			(231,463	)		(14,609	)		(152,116	)		(1,361,213	)		(302,213	)
Cash Flows from Investing Activities-Discontinued Operations		—			371,365			—			9,356						380,721
Cash Flows from Investing Activities		1,457,188			139,902			(14,609	)		(142,760	)		(1,361,213	)		78,508
Cash Flows from Financing Activities:
Repayment of revolving credit and term loan facilities and other debt		(396,200	)		(1,458,628	)		(90,752	)		(71,594	)		—			(2,017,174	)
Proceeds from revolving credit and term loan facilities and other debt		—			2,014,500			89,838			66,641			—			2,170,979
Early retirement of senior subordinated notes		(231,255	)		—			—			—			—			(231,255	)
Net proceeds from sale of senior subordinated notes		394,000			—			—			—			—			394,000
Debt financing (repayment to) and equity contribution from (distribution to) noncontrolling interests, net		—			—			—			698			—			698
Intercompany loans from parent		—			(1,461,888	)		5,429			70,056			1,386,403			—
Equity contribution from parent		—			12,595			—			12,595			(25,190	)		—
Stock repurchases		(984,953	)		—			—			—			—			(984,953	)
Parent cash dividends		(172,616	)		—			—			—			—			(172,616	)
Proceeds from exercise of stock options and employee stock purchase plan		85,742			—			—			—			—			85,742
Excess tax benefits from stock-based compensation		919			—			—			—			—			919
Payment of debt financing costs		(828	)		(8,182	)		—			—			—			(9,010	)
Cash Flows from Financing Activities-Continuing Operations		(1,305,191	)		(901,603	)		4,515			78,396			1,361,213			(762,670	)
Cash Flows from Financing Activities-Discontinued Operations		—			—			—			(1,138	)					(1,138	)
Cash Flows from Financing Activities		(1,305,191	)		(901,603	)		4,515			77,258			1,361,213			(763,808	)
Effect of exchange rates on cash and cash equivalents		—			—			(3,883	)		(5,103	)		—			(8,986	)
Increase (Decrease) in cash and cash equivalents		(10,481	)		(110,834	)		31,255			11,212			—			(78,848	)
Cash and cash equivalents, beginning of period		13,909			121,584			37,652			85,548			—			258,693
Cash and cash equivalents, end of period	$	3,428		$	10,750		$	68,907		$	96,760		$	—		$	179,845

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Debt (Tables)

12 Months Ended

Dec. 31, 2011

Debt

Carrying amount and fair value of long-term debt instruments

	December 31, 2010					December 31, 2011
	Carrying Amount			Fair Value		Carrying Amount			Fair Value
IMI Revolving Credit Facility(1)	$	—		$	—	$	—		$	—
IMI Term Loan Facility(1)		396,200			396,200		—			—
New Revolving Credit Facility(1)		—			—		96,000			96,000
New Term Loan Facility(1)		—			—		487,500			487,500
71/4% GBP Senior Subordinated Notes due 2014 (the "71/4% Notes")(2)(3)		232,530			234,855		233,115			233,115
73/4% Senior Subordinated Notes due 2015 (the "73/4% Notes due 2015")(2)(3)		233,234			231,683		—			—
65/8% Senior Subordinated Notes due 2016 (the "65/8% Notes")(2)(3)		317,529			321,592		318,025			320,400
71/2% CAD Senior Subordinated Notes due 2017 (the "Subsidiary Notes")(2)(4)		175,306			182,099		171,273			174,698
83/4% Senior Subordinated Notes due 2018 (the "83/4% Notes")(2)(3)		200,000			209,625		200,000			209,000
8% Senior Subordinated Notes due 2018 (the "8% Notes")(2)(3)		49,777			53,756		49,806			47,607
63/4% Euro Senior Subordinated Notes due 2018 (the "63/4% Notes")(2)(3)		338,129			337,631		328,750			312,352
73/4% Senior Subordinated Notes due 2019 (the "73/4% Notes due 2019")(2)(3)		—			—		400,000			422,750
8% Senior Subordinated Notes due 2020 (the "8% Notes due 2020")(2)(3)		300,000			316,313		300,000			313,313
83/8% Senior Subordinated Notes due 2021 (the "83/8% Notes")(2)(3)		548,174			589,188		548,346			586,438
Real Estate Mortgages, Capital Leases and Other(5)		217,328			217,328		220,773			220,773
Total Long-term Debt		3,008,207					3,353,588
Less Current Portion		(96,081	)(6)				(73,320	)
Long-term Debt, Net of Current Portion	$	2,912,126				$	3,280,268

(1)

The capital stock or other equity interests of most of our U.S. subsidiaries, and up to 66% of the capital stock or other equity interests of our first-tier foreign subsidiaries, are pledged to secure these debt instruments, together with all intercompany obligations of foreign subsidiaries owed to us or to one of our U.S. subsidiary guarantors. The fair value of this long-term debt approximates the carrying value (as borrowings under these debt instruments are based on current variable market interest rates as of December 31, 2010 and 2011, respectively).

(2)

The fair values of these debt instruments are based on quoted market prices for these notes on December 31, 2010 and 2011, respectively.

(3)

Collectively, the "Parent Notes". IMI is the direct obligor on the Parent Notes, which are fully and unconditionally guaranteed, on a senior subordinated basis, by substantially all of its direct and indirect wholly owned U.S. subsidiaries (the "Guarantors"). These guarantees are joint and several obligations of the Guarantors. Iron Mountain Canada Corporation ("Canada Company") and the remainder of our subsidiaries do not guarantee the Parent Notes.

(4)

Canada Company is the direct obligor on the Subsidiary Notes, which are fully and unconditionally guaranteed, on a senior subordinated basis, by IMI and the Guarantors. These guarantees are joint and several obligations of IMI and the Guarantors.

(5)

Includes (a) real estate mortgages of $7,492 and $5,232 as of December 31, 2010 and 2011, respectively, which bear interest at rates ranging from 2.0% to 5.5% and are payable in various installments through 2021, (b) capital lease obligations of $200,996 and $207,300 as of December 31, 2010 and 2011, respectively, which bear a weighted average interest rate of 5.8% as of December 31, 2011 and (c) other various notes and other obligations, which were assumed by us as a result of certain acquisitions, of $8,840 and $8,241 as of December 31, 2010 and 2011, respectively, and bear a weighted average interest rate of 8.7% as of December 31, 2011. We believe the fair value of this debt approximates its carrying value.

(6)

Includes $51,694 associated with the 7³/4% Notes which we fully redeemed in January 2011. This amount represents the portion of the redemption funded with cash on-hand. The remaining funds were drawn under the revolving credit facility.

Term loan payments required as a percentage of original principal amount

Year Ending	Percentage
June 30, 2012		5	%
June 30, 2013		5	%
June 30, 2014		10	%
June 30, 2015		15	%
June 27, 2016		65	%

Redemption dates and prices of senior subordinated notes

Redemption Date	71/4% Notes April 15,			65/8% Notes July 1,			71/2% Notes March 15,			83/4% Notes July 15,			8% Notes October 15,			63/4% Notes October 15,			73/4% Notes October 1,			8% Notes June 15,			83/8% Notes August 15,
2011		101.208	%		100.000	%		—			104.375	%		104.000	%		103.375	%		—			—			—
2012		100.000	%		100.000	%		103.750	%		102.917	%		102.667	%		102.250	%		—			—			—
2013		100.000	%		100.000	%		102.500	%		101.458	%		101.333	%		101.125	%		—			104.000	%		—
2014		100.000	%		100.000	%		101.250	%		100.000	%		100.000	%		100.000	%		—			102.667	%		104.188	%
2015		—			100.000	%		100.000	%		100.000	%		100.000	%		100.000	%		103.875	%		101.333	%		102.792	%
2016		—			100.000	%		100.000	%		100.000	%		100.000	%		100.000	%		101.938	%		100.000	%		101.396	%
2017		—			—			100.000	%		100.000	%		100.000	%		100.000	%		100.000	%		100.000	%		100.000	%
2018		—			—			—			100.000	%		100.000	%		100.000	%		100.000	%		100.000	%		100.000	%

Maturities of long-term debt

Year	Amount
2012	$	73,320
2013		79,195
2014		321,177
2015		154,030
2016		652,318
Thereafter		2,079,155
		3,359,195
Net Premiums (Discounts)		(5,607	)
Total Long-term Debt (including current portion)	$	3,353,588

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Acquisitions (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended			3 Months Ended			12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Jun. 30, 2010 Greece acquisition	Dec. 31, 2011 Greece acquisition	May 31, 2010 Greece acquisition	Dec. 31, 2011 Iron Mountain Poland Holdings Limited	Jun. 30, 2011 Iron Mountain Poland Holdings Limited	Jan. 31, 2011 Iron Mountain Poland Holdings Limited
Business Acquisition
Contingent and other payments related to acquisitions made in prior years			$ 1,518
Percentage of Business Acquired						87.00%			80.00%
Cash purchase price	80,439	10,542				4,700		42,259	35,000
Ownership percentage after acquisition					100.00%		100.00%
Percentage of previously held ownership interest						13.00%			20.00%
Equity method of investment	3,499	9,663				416			5,774
Fair value of such interest on the date of acquisition	11,694	473				473			11,694
Gain on the transaction to other (income) expense, net				57			5,920
Total Consideration	95,033	11,015							80,000
Portion of Cash Paid for Acquisition that was Deposited in Escrow							400
Contingent Consideration	2,900						2,500
Control premium paid (as a percent)									40.00%
Purchase price receivable by the member of entity's board of directors together with several of his family members in connection with the acquisition (as a percent)									24.00%
Consideration paid for acquisitions
Cash Paid for Business acquired	80,439	10,542				4,700		42,259	35,000
Contingent Consideration	2,900						2,500
Fair Value of Previously Held Equity Interest	11,694	473				473			11,694
Total Consideration	95,033	11,015							80,000
Fair Value of Identifiable Assets Acquired:
Cash, Accounts Receivable, Prepaid Expenses Deferred Income Taxes and Other	7,918	1,615
Property, Plant and Equipment	6,002	2,711
Customer Relationship Assets	59,100	5,189
Other Assets	653
Liabilities Assumed	(15,245)	(3,840)
Noncontrolling Interests		(390)
Total Fair Value of Identifiable Net Assets Acquired	58,428	5,285
Recorded Goodwill	36,605	5,730
Payments Related to Acquisitions Made in Previous Years	$ 132	$ 3,428

XML

Summary of Significant Accounting Policies (Details 8) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2011 bank fund	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011 year bank fund	Dec. 31, 2010	Dec. 31, 2009
Income (Loss) Per Share-Basic and Diluted
Income (Loss) from Continuing Operations	$ 47,382	$ 50,394	$ 67,460	$ 81,176	$ 57,930	$ 27,202	$ 49,252	$ 32,355	$ 246,412	$ 166,739	$ 231,517
Total income (Loss) from discontinued operations (see Note 14)	(13,381)	(12,469)	185,587	(6,557)	(24,674)	(178,930)	(8,435)	(7,378)	153,180	(219,417)	(12,138)
Net Income (Loss) Attributable to Iron Mountain Incorporated	32,056	37,338	252,684	73,460	32,040	(154,687)	40,357	24,704	395,538	(57,586)	217,950
Weighted-average shares-basic									194,777,000	201,991,000	202,812,000
Effect of dilutive potential stock options (in shares)									1,060,477		1,458,777
Effect of dilutive potential restricted stock, RSUs and PUs (in shares)									100,136		41
Weighted-average shares-diluted									195,938,000	201,991,000	204,271,000
Earnings (Losses) per share-basic:
Income (Loss) from continuing operations (in dollars per share)	$ 0.26	$ 0.26	$ 0.33	$ 0.41	$ 0.29	$ 0.14	$ 0.24	$ 0.16	$ 1.27	$ 0.83	$ 1.14
Total income (Loss) from Discontinued Operations (see Note 14) (in dollars per share)	$ (0.07)	$ (0.06)	$ 0.92	$ (0.03)	$ (0.12)	$ (0.89)	$ (0.04)	$ (0.04)	$ 0.79	$ (1.09)	$ (0.06)
Net Income (Loss) Attributable to Iron Mountain Incorporated (in dollars per share)	$ 0.18	$ 0.19	$ 1.25	$ 0.37	$ 0.16	$ (0.77)	$ 0.20	$ 0.12	$ 2.03	$ (0.29)	$ 1.07
Earnings (Losses) per share-diluted:
Income (Loss) from continuing operations (in dollars per share)	$ 0.26	$ 0.26	$ 0.33	$ 0.40	$ 0.29	$ 0.14	$ 0.24	$ 0.16	$ 1.26	$ 0.83	$ 1.13
Total income (Loss) from Discontinued Operations (see Note 14) (in dollars per share)	$ (0.07)	$ (0.06)	$ 0.91	$ (0.03)	$ (0.12)	$ (0.89)	$ (0.04)	$ (0.04)	$ 0.78	$ (1.09)	$ (0.06)
Net Income (Loss) Attributable to Iron Mountain Incorporated (in dollars per share)	$ 0.18	$ 0.19	$ 1.24	$ 0.37	$ 0.16	$ (0.77)	$ 0.20	$ 0.12	$ 2.02	$ (0.29)	$ 1.07
Antidilutive stock options, RSUs and PUs, excluded from the calculation (in shares)									3,973,760	9,305,328	8,085,784
Allowance for Doubtful Accounts and Credit Memo Reserves
The general period to charge-off uncollectible balances of receivable, as circumstances warrant, is no later than this period of time past due (in years)									1
Concentrations of Credit Risk
Number of global banks with cash, cash equivalent and restricted cash held on deposit	5								5
Number of "Triple A" rated money market funds with cash, cash equivalent and restricted cash held on deposit	1								1
Maximum investment limit in any one mutual fund or financial institution									50,000
Cash, cash equivalent and restricted cash	214,955								214,955
Money market fund and time deposits	181,823								181,823
Allowance for doubtful accounts and credit memo reserves
Roll forward of allowance for doubtful accounts and credit memo reserves
Balance at Beginning of the Year				20,747				19,595	20,747	19,595	16,412
Credit Memos Charged to Revenue									39,343	42,204	39,018
Allowance for Bad Debts Charged to Expense									9,506	11,801	8,994
Other									(205)	(481)	1,006
Deductions									(46,114)	(52,372)	(45,835)
Balance at End of the Year	$ 23,277				$ 20,747				$ 23,277	$ 20,747	$ 19,595

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Acquisitions (Tables)

12 Months Ended

Dec. 31, 2011

Acquisitions

Summary of cumulative consideration paid for acquisitions and preliminary allocation of purchase price

	2010			2011
Cash Paid (gross of cash acquired)	$	10,542	(1)	$	80,439	(1)
Contingent Consideration		—			2,900
Fair Value of Previously Held Equity Interest		473			11,694
Total Consideration		11,015			95,033
Fair Value of Identifiable Assets Acquired:
Cash, Accounts Receivable, Prepaid Expenses,
Deferred Income Taxes and Other		1,615			7,918
Property, Plant and Equipment(2)		2,711			6,002
Customer Relationship Assets(3)		5,189			59,100
Other Assets		—			653
Liabilities Assumed(4)		(3,840	)		(15,245	)
Noncontrolling Interests		(390	)		—
Total Fair Value of Identifiable Net Assets Acquired		5,285			58,428
Recorded Goodwill	$	5,730		$	36,605

(1)

Included in cash paid for acquisitions in the consolidated statements of cash flows for the years ended December 31, 2010 and 2011 are contingent and other payments of $3,428 and $132, respectively, related to acquisitions made in previous years.

(2)

Consists primarily of racking, leasehold improvements and computer hardware and software.

(3)

The weighted average lives of customer relationship assets associated with acquisitions in 2010 and 2011 was 10 years and 20 years, respectively.

(4)

Consists primarily of accounts payable, accrued expenses, notes payable, deferred revenue and deferred income taxes.

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Taxes

Components of deferred tax assets and deferred tax liabilities

	December 31,
	2010			2011
Deferred Tax Assets:
Accrued liabilities	$	42,360		$	53,983
Deferred rent		23,253			21,889
Net operating loss carryforwards		52,099			58,113
Foreign tax credits		60,841			56,599
Valuation Allowance		(72,229	)		(72,239	)
Other		47,779			44,168
		154,103			162,513
Deferred Tax Liabilities:
Other assets, principally due to differences in amortization		(262,801	)		(281,060	)
Plant and equipment, principally due to differences in depreciation		(339,541	)		(345,576	)
		(602,342	)		(626,636	)
Net deferred tax liability	$	(448,239	)	$	(464,123	)

Schedule of current and noncurrent deferred tax assets (liabilities)

	December 31,
	2010			2011
Deferred tax assets	$	49,342		$	54,383
Deferred tax liabilities		(5,117	)		(11,148	)
Current deferred tax assets, net	$	44,225		$	43,235
Deferred tax assets	$	104,761		$	108,130
Deferred tax liabilities		(597,225	)		(615,488	)
Noncurrent deferred tax liabilities, net	$	(492,464	)	$	(507,358	)

Roll forward of Valuation allowance

Year Ended December 31,	Balance at Beginning of the Year		Charged (Credited) to Expense		Other Additions		Other Deductions			Balance at End of the Year
2009	$	36,392	$	1,416	$	3,158	$	(7,040	)	$	33,926
2010		33,926		39,545		—		(1,242	)		72,229
2011		72,229		9,844		—		(9,834	)		72,239

Components of income (loss) from continuing operations before provision for income taxes

	Year Ended December 31,
	2009		2010		2011
U.S.	$	224,599	$	272,806	$	313,530
Canada		22,060		41,474		48,327
Foreign		98,620		19,942		(8,957	)
	$	345,279	$	334,222	$	352,900

Provision (benefit) for income taxes

	Year Ended December 31,
	2009		2010			2011
Federal—current	$	53,504	$	76,992		$	47,523
Federal—deferred		23,106		41,825			25,708
State—current		17,968		32,475			23,828
State—deferred		6,476		(851	)		(1,093	)
Foreign—current		11,955		20,350			31,748
Foreign—deferred		753		(3,308	)		(21,226	)
	$	113,762	$	167,483		$	106,488

Reconciliation of total income tax expense and amount computed by applying the federal income tax rate

	Year Ended December 31,
	2009			2010			2011
Computed "expected" tax provision	$	120,848		$	116,978		$	123,515
Changes in income taxes resulting from:
State taxes (net of federal tax benefit)		15,451			17,163			16,301
Increase in valuation allowance (net operating losses)		1,416			(2	)		12,601
Increase (Decrease) in valuation allowance (foreign tax credits)		—			39,547			(2,757	)
Impairment of goodwill and divestitures		—			29,772			10,254
Reserve reversal and audit settlements		—			(41,753	)		(32,989	)
Foreign tax rate differential		(25,442	)		(7,828	)		(34,867	)
United Kingdom thin cap, Subpart F income and foreign restructuring		4,194			8,247			5,663
Other, net		(2,705	)		5,359			8,767
	$	113,762		$	167,483		$	106,488

Tax years subject to examination by major tax jurisdictions

Tax Year	Tax Jurisdiction
See Below	United States
2006 to present	Canada
2010 to present	United Kingdom

Reconciliation of unrecognized tax benefits

Gross tax contingencies—December 31, 2008	$	84,566
Gross additions based on tax positions related to the current year		3,166
Gross additions for tax positions of prior years		5,693
Gross reductions for tax positions of prior years		(720	)
Lapses of statutes		(4,460	)
Settlements		(90	)
Gross tax contingencies—December 31, 2009	$	88,155
Gross additions based on tax positions related to the current year		6,575
Gross additions for tax positions of prior years		9,759
Gross reductions for tax positions of prior years		(3,349	)
Lapses of statutes		(33,001	)
Settlements		(8,248	)
Gross tax contingencies—December 31, 2010	$	59,891
Gross additions based on tax positions related to the current year		6,593
Gross additions for tax positions of prior years		6,437
Gross reductions for tax positions of prior years		(30,316	)
Lapses of statutes		(6,268	)
Settlements		(4,929	)
Gross tax contingencies—December 31, 2011	$	31,408

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CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
CONSOLIDATED STATEMENTS OF EQUITY
Tax benefit on issuance of shares under employee stock purchase plan and option plans and stock-based compensation	$ 919	$ 2,252	$ 5,532

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Quarterly Results of Operations (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2011

Quarterly Results of Operations (Unaudited)

Quarterly Results of Operations (Unaudited)

Quarter Ended	March 31			June 30			Sept. 30			Dec. 31
2010
Total revenues	$	718,996		$	718,536		$	725,649		$	729,168
Operating income (loss)		138,342			157,278			105,686			146,243
Income (loss) from continuing operations		32,355			49,252			27,202			57,930
Total income (loss) from discontinued operations		(7,378	)		(8,435	)		(178,930	)		(24,674	)
Net income (loss)		24,977			40,817			(151,728	)		33,256
Net income (loss) attributable to Iron Mountain Incorporated		24,704			40,357			(154,687	)		32,040(1)
Earnings (losses) per Share-Basic
Income (loss) per share from continuing operations		0.16			0.24			0.14			0.29
Total income (loss) per share from discontinued operations		(0.04	)		(0.04	)		(0.89	)		(0.12	)
Net income (loss) per share attributable to Iron Mountain Incorporated		0.12			0.20			(0.77	)		0.16
Earnings (losses) per Share-Diluted
Income (loss) per share from continuing operations		0.16			0.24			0.14			0.29
Total income (loss) per share from discontinued operations		(0.04	)		(0.04	)		(0.89	)		(0.12	)
Net income (loss) per share attributable to Iron Mountain Incorporated		0.12			0.20			(0.77	)		0.16
2011
Total revenues	$	746,009		$	758,551		$	768,306		$	741,837
Operating income (loss)		137,600			148,937			135,199			149,463
Income (loss) from continuing operations		81,176			67,460			50,394			47,382
Total income (loss) from discontinued operations		(6,557	)		185,587			(12,469	)		(13,381	)
Net income (loss)		74,619			253,047			37,925			34,001
Net income (loss) attributable to Iron Mountain Incorporated		73,460			252,684			37,338			32,056
Earnings (losses) per Share-Basic
Income (loss) per share from continuing operations		0.41			0.33			0.26			0.26
Total income (loss) per share from discontinued operations		(0.03	)		0.92			(0.06	)		(0.07	)
Net income (loss) per share attributable to Iron Mountain Incorporated		0.37			1.25			0.19			0.18
Earnings (losses) per Share-Diluted
Income (loss) per share from continuing operations		0.40			0.33			0.26			0.26
Total income (loss) per share from discontinued operations		(0.03	)		0.91			(0.06	)		(0.07	)
Net income (loss) per share attributable to Iron Mountain Incorporated		0.37			1.24			0.19			0.18

(1)

The change in net income (loss) attributable to Iron Mountain Incorporated in the fourth quarter of 2010 compared to the third quarter of 2010 is primarily related to the impact associated with the goodwill impairment charge of which $255,000 ($249,000, net of tax) was recorded in the third quarter of 2010 compared to $28,785 ($28,300, net of tax) recorded in the fourth quarter of 2010. See Note 14. Discrete tax benefits recorded in the third quarter compared to charges in the fourth quarter of 2010 related to unrealized foreign exchange gains and losses in different tax jurisdictions at different tax rates also contributed to the change. Additionally, to a lesser extent, reduced operating income primarily related to increased selling, general and administrative expenses offset by reduced interest expense related to the retirement of a portion of our 7³/4% Notes due 2015 in the third quarter of 2010 also contributed to the change.

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Summary of Significant Accounting Policies (Details 4) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Disposition and impairment of long-lived assets by segment
Gain (loss) on disposal/write-down of property, plant and equipment, net	$ 2,286	$ 10,987	$ (168)
Loss associated with discontinued use of certain third-party software licenses	3,500
Chile
Disposition and impairment of long-lived assets by segment
Gain (loss) on disposal/write-down of property, plant and equipment, net		10,200
Canada
Disposition and impairment of long-lived assets by segment
Gain (loss) on disposal/write-down of property, plant and equipment, net	3,200
North American Business
Disposition and impairment of long-lived assets by segment
Gain (loss) on disposal/write-down of property, plant and equipment, net	3,000	3,200
Write-down of certain facilities		2,600	1,000
Loss associated with discontinued use of certain third-party software licenses	450
International Business
Disposition and impairment of long-lived assets by segment
Write-down of certain facilities			700
Loss associated with discontinued use of certain third-party software licenses	3,050
International Business | France
Disposition and impairment of long-lived assets by segment
Gain (loss) on disposal/write-down of property, plant and equipment, net			1,900
International Business | United Kingdom
Disposition and impairment of long-lived assets by segment
Gain (loss) on disposal/write-down of property, plant and equipment, net		1,300
Corporate
Disposition and impairment of long-lived assets by segment
Write-down of certain facilities			300
Latin America
Disposition and impairment of long-lived assets by segment
Write-down of certain facilities		$ 1,000

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Selected Consolidated Financial Statements of Parent, Guarantors, Canada Company and Non-Guarantors (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Current Assets:
Cash and cash equivalents	$ 179,845	$ 258,693	$ 446,656	$ 278,370
Restricted cash	35,110	35,105
Accounts Receivable	543,467	524,326
Assets of discontinued operations	7,256	213,208
Other Current Assets	148,772	181,130
Total Current Assets	914,450	1,212,462
Property, Plant and Equipment, Net	2,407,083	2,468,244
Other Assets, net:
Goodwill	2,254,268	2,279,561	2,373,319
Other	465,457	436,640
Assets of discontinued operations		19,486
Total Other Assets, net	2,719,725	2,735,687
Total Assets	6,041,258	6,416,393	6,851,157
LIABILITIES AND EQUITY
Current portion of long-term debt	73,320	96,081
Total Other Current Liabilities	772,393	717,148
Liabilities of discontinued operations	3,317	61,474
Long-term Debt, net of current portion	3,280,268	2,912,126
Other Long-term Liabilities	657,704	674,929
Liabilities of discontinued operations		1,770
Commitments and Contingencies (see Note 10)
Total Iron Mountain Incorporated Stockholders' Equity	1,245,688	1,945,448
Noncontrolling Interests	8,568	7,417
Total Equity	1,254,256	1,952,865	2,150,760	1,814,769
Total Liabilities and Equity	6,041,258	6,416,393
Parent
Current Assets:
Cash and cash equivalents	3,428	13,909
Restricted cash	35,110	35,105
Intercompany Receivable	905,451	1,344,802
Other Current Assets	2,016	2,601
Total Current Assets	946,005	1,396,417
Property, Plant and Equipment, Net	1,490
Other Assets, net:
Long-term Notes Receivable from Affiliates and Intercompany Receivable	928,182	1,381,546
Investment in Subsidiaries	1,828,712	1,853,560
Other	27,226	27,304
Total Other Assets, net	2,784,120	3,262,410
Total Assets	3,731,615	4,658,827
LIABILITIES AND EQUITY
Current portion of long-term debt	658	56,407
Total Other Current Liabilities	100,921	92,339
Long-term Debt, net of current portion	2,378,040	2,559,780
Long-term Notes Payable to Affiliates and Intercompany Payable	1,000	1,000
Other Long-term Liabilities	5,308	3,853
Total Iron Mountain Incorporated Stockholders' Equity	1,245,688	1,945,448
Total Equity	1,245,688	1,945,448
Total Liabilities and Equity	3,731,615	4,658,827
Guarantors
Current Assets:
Cash and cash equivalents	10,750	121,584	382,588	210,636
Accounts Receivable	334,658	327,842
Assets of discontinued operations		184,790
Other Current Assets	103,899	128,341
Total Current Assets	449,307	762,557
Property, Plant and Equipment, Net	1,480,785	1,522,073
Other Assets, net:
Long-term Notes Receivable from Affiliates and Intercompany Receivable	1,000	1,000
Investment in Subsidiaries	1,563,690	1,599,133
Goodwill	1,529,359	1,525,960
Other	240,557	236,497
Total Other Assets, net	3,334,606	3,362,590
Total Assets	5,264,698	5,647,220
LIABILITIES AND EQUITY
Intercompany Payable	856,808	1,325,593
Current portion of long-term debt	46,967	24,393
Total Other Current Liabilities	453,648	405,299
Liabilities of discontinued operations		53,374
Long-term Debt, net of current portion	630,118	67,504
Long-term Notes Payable to Affiliates and Intercompany Payable	946,153	1,381,546
Other Long-term Liabilities	528,897	551,961
Total Iron Mountain Incorporated Stockholders' Equity	1,802,107	1,837,550
Total Equity	1,802,107	1,837,550
Total Liabilities and Equity	5,264,698	5,647,220
Canada Company
Current Assets:
Cash and cash equivalents	68,907	37,652	3,906	17,069
Accounts Receivable	40,115	41,562
Intercompany Receivable	4,639	9,281
Other Current Assets	3,323	10,878
Total Current Assets	116,984	99,373
Property, Plant and Equipment, Net	200,755	208,020
Other Assets, net:
Long-term Notes Receivable from Affiliates and Intercompany Receivable	2,961
Goodwill	196,989	203,345
Other	9,804	13,601
Total Other Assets, net	209,754	216,946
Total Assets	527,493	524,339
LIABILITIES AND EQUITY
Current portion of long-term debt	2,658	2,606
Total Other Current Liabilities	31,407	42,614
Long-term Debt, net of current portion	185,953	191,010
Other Long-term Liabilities	31,418	27,585
Total Iron Mountain Incorporated Stockholders' Equity	276,057	260,524
Total Equity	276,057	260,524
Total Liabilities and Equity	527,493	524,339
Non-Guarantors
Current Assets:
Cash and cash equivalents	96,760	85,548	60,162	50,665
Accounts Receivable	168,694	154,922
Assets of discontinued operations	7,256	28,418
Other Current Assets	40,538	39,310
Total Current Assets	313,248	308,198
Property, Plant and Equipment, Net	724,053	738,151
Other Assets, net:
Long-term Notes Receivable from Affiliates and Intercompany Receivable	15,010
Goodwill	527,920	550,256
Other	187,870	159,352
Assets of discontinued operations		19,486
Total Other Assets, net	730,800	729,094
Total Assets	1,768,101	1,775,443
LIABILITIES AND EQUITY
Intercompany Payable	53,282	28,490
Current portion of long-term debt	23,037	12,675
Total Other Current Liabilities	187,421	176,896
Liabilities of discontinued operations	3,317	8,100
Long-term Debt, net of current portion	86,157	93,832
Other Long-term Liabilities	92,081	91,644
Liabilities of discontinued operations		1,770
Total Iron Mountain Incorporated Stockholders' Equity	1,314,238	1,354,619
Noncontrolling Interests	8,568	7,417
Total Equity	1,322,806	1,362,036
Total Liabilities and Equity	1,768,101	1,775,443
Eliminations
Current Assets:
Intercompany Receivable	(910,090)	(1,354,083)
Other Current Assets	(1,004)
Total Current Assets	(911,094)	(1,354,083)
Other Assets, net:
Long-term Notes Receivable from Affiliates and Intercompany Receivable	(947,153)	(1,382,546)
Investment in Subsidiaries	(3,392,402)	(3,452,693)
Other		(114)
Total Other Assets, net	(4,339,555)	(4,835,353)
Total Assets	(5,250,649)	(6,189,436)
LIABILITIES AND EQUITY
Intercompany Payable	(910,090)	(1,354,083)
Total Other Current Liabilities	(1,004)
Long-term Notes Payable to Affiliates and Intercompany Payable	(947,153)	(1,382,546)
Other Long-term Liabilities		(114)
Total Iron Mountain Incorporated Stockholders' Equity	(3,392,402)	(3,452,693)
Total Equity	(3,392,402)	(3,452,693)
Total Liabilities and Equity	$ (5,250,649)	$ (6,189,436)

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Discontinued Operations (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended			1 Months Ended	3 Months Ended		12 Months Ended					1 Months Ended	3 Months Ended	7 Months Ended	12 Months Ended	3 Months Ended		12 Months Ended				3 Months Ended	12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Jun. 30, 2011 Worldwide Digital Business, a reporting unit year month	Dec. 31, 2010 Worldwide Digital Business, a reporting unit	Sep. 30, 2010 Worldwide Digital Business, a reporting unit	Dec. 31, 2011 Worldwide Digital Business, a reporting unit	Dec. 31, 2010 Worldwide Digital Business, a reporting unit	Dec. 31, 2009 Worldwide Digital Business, a reporting unit	Jun. 02, 2012 Worldwide Digital Business, a reporting unit	Jun. 02, 2011 Worldwide Digital Business, a reporting unit year	Aug. 31, 2010 Domain Name	Sep. 30, 2010 Domain Name	Jul. 31, 2010 Domain Name	Dec. 31, 2009 Domain Name	Dec. 31, 2011 New Zealand Business	Jun. 30, 2011 New Zealand Business	Dec. 31, 2011 New Zealand Business	Dec. 31, 2010 New Zealand Business	Dec. 31, 2009 New Zealand Business	Oct. 03, 2011 New Zealand Business	Sep. 30, 2011 Italian Business	Dec. 31, 2011 Italian Business	Dec. 31, 2010 Italian Business	Dec. 31, 2009 Italian Business	Feb. 28, 2010 Mimosa Systems, Inc.
Discontinued operation disclosures
Proceeds from divestiture of business												$ 395,400								$ 11,400
Payment made for purchase of certain products and services for internal use												3,075
Total revenues																						3,500	6,300
Maximum percentage of direct cash inflows and outflows for the one year period subsequent to the sale of business												5.00%
Impairment charge included in income (loss) from discontinued operations																									4,900
Goodwill impairment charge allocated to the technology escrow service																85,909
Gain on Sale of Discontinued Operations															243,861						6,900			1,884
Gain on Sale of Discontinued Operations, Net of Tax									200,619						198,735						2,834					1,884
Goodwill impairment charge									46,500	85,909			28,785	255,000		283,785
Initial purchase price																			380,000										10,000
Preliminary working capital adjustment																			15,400
Transaction costs															7,387
Unpaid portion of transaction cost															774
Inducements paid to Autonomy															11,075
Unpaid portion of inducements															6,000
Tax provision recorded which is associated with business sold															45,126
Cumulative translation adjustment reclassified from accumulated other comprehensive items, net and reduced the gain on sale															3,828
Write-offs of other intangible assets, primarily customer relationship values																														8,000
Write-downs to property, plant and equipment (primarily racking) long-lived assets																														6,600
Western Europe goodwill impairment charge allocated to the Italian Business, net of tax benefit																															2,500
Cash Paid for Business acquired	80,439				10,542				80,439	10,542																								112,000
Fair Value of Options Issued																																		2,000
Summarized results of operations
Total Revenues															79,199	203,479	201,651									6,489	7,414	7,279			15,353	18,284	25,468
Loss Before Benefit for Income Taxes of Discontinued Operations															(31,094)	(235,161)	(14,959)									(4,726)	(533)	(1,451)			(35,350)	(3,756)	(849)
Benefit for Income Taxes															13,744	19,682	4,791									7,883					2,104	351	330
(Loss) Income from Discontinued Operations, Net of Tax									(47,439)	(219,417)	(12,138)				(17,350)	(215,479)	(10,168)									3,157	(533)	(1,451)			(33,246)	(3,405)	(519)
Gain on Sale of Discontinued Operations															243,861						6,900			1,884
Provision for Income Taxes															45,126
Gain on Sale of Discontinued Operations, Net of Tax									200,619						198,735						2,834					1,884
Total (Loss) Income from Discontinued Operations and Sale, Net of Tax	(13,381)	(12,469)	185,587	(6,557)	(24,674)	(178,930)	(8,435)	(7,378)	153,180	(219,417)	(12,138)				181,385	(215,479)	(10,168)									5,041	(533)	(1,451)			(33,246)	(3,405)	(519)
Interest allocated to the Digital Business and Domain Name and included in loss from discontinued operations															2,396	14,336	13,041
Carrying amounts of the major classes of assets and liabilities of discontinued operations
Accounts receivable, net													41,418			41,418			43,893								1,339		1,146		4,676	8,744
Deferred income taxes	43,235				44,225				43,235	44,225			1,726			1,726			1,542
Prepaid expenses and other	105,537				136,905				105,537	136,905			6,585			6,585			6,533								1,034		897		602	1,738
Current assets of discontinued operations	7,256				213,208				7,256	213,208			49,729			49,729			51,968								2,373		2,043		5,278	10,482
Property, plant and equipment, net													39,539			39,539			37,882								3,746		3,632			7,583
Goodwill, net													35,699			35,699			35,699								6,128		1,136			2,576
Deferred income taxes													13,934			13,934			13,485
Other assets, net													45,889			45,889			41,146								5,689		5,452		1,978	9,327
Non-current assets of discontinued operations					19,486					19,486			135,061			135,061			128,212								15,563		10,220		1,978	19,486
Assets of discontinued operations													184,790			184,790			180,180								17,936		12,263		7,256	29,968
Current portion of long-term debt	73,320				96,081				73,320	96,081																	387				118	522
Accounts payable													15,848			15,848			9,665								263		236		563	1,324
Accrued expenses													8,879			8,879			7,824								1,382		524		2,552	2,386
Deferred revenue													27,638			27,638			31,755								113		67		41	20
Current liabilities of discontinued operations	3,317				61,474				3,317	61,474			52,365			52,365			49,244								2,145		827		3,274	4,252
Other long-term liabilities													1,009			1,009			1,027								24		24		43	339
Deferred income taxes																											1,679		1,659			1,431
Non-current liabilities of discontinued operations					1,770					1,770			1,009			1,009			1,027								1,703		1,683		43	1,770
Liabilities of discontinued operations													53,374			53,374			50,271								3,848		2,510		3,317	6,022
Period of reseller agreement (in years)																			3
Payment to purchaser on closing of sale of business												$ 3,500						$ 6,000
Transitional period in co-location agreement prior to the end of the first two year term (in years)												2
Extension to transitional period (in years)												2
Notice period for extension to transitional period (in months)												6
Maximum service agreement period (in months)												6

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CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Current Assets:
Cash and cash equivalents	$ 179,845	$ 258,693
Restricted cash	35,110	35,105
Accounts receivable (less allowances of $20,747 and $23,277 as of December 31, 2010 and 2011, respectively)	543,467	524,326
Deferred income taxes	43,235	44,225
Prepaid expenses and other	105,537	136,905
Assets of discontinued operations	7,256	213,208
Total Current Assets	914,450	1,212,462
Property, Plant and Equipment:
Property, plant and equipment	4,232,594	4,161,410
Less-Accumulated depreciation	(1,825,511)	(1,693,166)
Property, Plant and Equipment, net	2,407,083	2,468,244
Other Assets, net:
Goodwill	2,254,268	2,279,561
Customer relationships and acquisition costs	410,149	379,808
Deferred financing costs	35,798	29,146
Other	19,510	27,686
Assets of discontinued operations		19,486
Total Other Assets, net	2,719,725	2,735,687
Total Assets	6,041,258	6,416,393
Current Liabilities:
Current portion of long-term debt	73,320	96,081
Accounts payable	156,381	143,765
Accrued expenses	418,831	382,670
Deferred revenue	197,181	190,713
Liabilities of discontinued operations	3,317	61,474
Total Current Liabilities	849,030	874,703
Long-term Debt, net of current portion	3,280,268	2,912,126
Other Long-term Liabilities	53,169	86,605
Deferred Rent	97,177	95,860
Deferred Income Taxes	507,358	492,464
Liabilities of discontinued operations		1,770
Commitments and Contingencies (see Note 10)
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 200,064,066 shares and 172,140,966 shares as of December 31, 2010 and 2011, respectively)	1,721	2,001
Additional paid-in capital	343,603	1,228,655
Retained earnings	902,567	685,310
Accumulated other comprehensive items, net	(2,203)	29,482
Total Iron Mountain Incorporated Stockholders' Equity	1,245,688	1,945,448
Noncontrolling Interests	8,568	7,417
Total Equity	1,254,256	1,952,865
Total Liabilities and Equity	$ 6,041,258	$ 6,416,393

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Summary of Significant Accounting Policies (Details 9) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 trust	Dec. 31, 2010	Dec. 31, 2009
Assets and liabilities carried at fair value measured on a recurring basis
Trading securities	$ 9,124	$ 9,215
Available-for-sale and Trading Securities
Trading securities	9,124	9,215
Net realized and unrealized gain (loss) on trading securities	(321)	1,221	1,745
Number of trust that holds marketable securities	1
Foreign Currency Cash Flow Hedges
Maximum Length of Time Hedged in Foreign Currency Cash Flow Hedge	P6M
Fair value measured on recurring basis | Total Carrying Value
Assets and liabilities carried at fair value measured on a recurring basis
Money market funds	35,110	107,129
Time deposits	146,713	134,022
Trading securities	9,124	9,215
Derivative assets	2,803	2,500
Derivative liabilities	435	2,440
Available-for-sale and Trading Securities
Trading securities	9,124	9,215
Fair value measured on recurring basis | Quoted prices in active markets (Level 1)
Assets and liabilities carried at fair value measured on a recurring basis
Trading securities	8,497	8,527
Available-for-sale and Trading Securities
Trading securities	8,497	8,527
Fair value measured on recurring basis | Significant other observable inputs (Level 2)
Assets and liabilities carried at fair value measured on a recurring basis
Money market funds	35,110	107,129
Time deposits	146,713	134,022
Trading securities	627	688
Derivative assets	2,803	2,500
Derivative liabilities	435	2,440
Available-for-sale and Trading Securities
Trading securities	$ 627	$ 688

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Net Income (Loss)	$ 399,592	$ (52,678)	$ 219,379
Other Comprehensive Income (Loss):
Foreign Currency Translation Adjustments	(32,616)	2,288	69,455
Total Other Comprehensive Income (Loss)	(32,616)	2,288	69,455
Comprehensive Income (Loss)	366,976	(50,390)	288,834
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	3,123	5,375	2,008
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$ 363,853	$ (55,765)	$ 286,826

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Income Taxes (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Deferred Tax Assets:
Accrued liabilities	$ 53,983	$ 42,360
Deferred rent	21,889	23,253
Net operating loss carryforwards	58,113	52,099
Foreign tax credits	56,599	60,841
Valuation Allowance	(72,239)	(72,229)
Other	44,168	47,779
Deferred Tax Assets, Net	162,513	154,103
Deferred Tax Liabilities:
Other Assets, principally due to differences in amortization	(281,060)	(262,801)
Plant and equipment principally due to differences in depreciation	(345,576)	(339,541)
Deferred Tax Liabilities	(626,636)	(602,342)
Net deferred tax liability	(464,123)	(448,239)
Current deferred tax assets (liabilities)
Deferred tax assets	54,383	49,342
Deferred tax liabilities	(11,148)	(5,117)
Current deferred tax assets, net	43,235	44,225
Noncurrent deferred tax assets (liabilities)
Deferred tax assets	108,130	104,761
Deferred tax liabilities	(615,488)	(597,225)
Noncurrent deferred tax liabilities, net	$ (507,358)	$ (492,464)

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Stockholders' Equity Matters (Tables)

9 Months Ended

Sep. 30, 2011

Stockholders' Equity Matters

Schedule of dividend declared and payments

Declaration Date	Dividend Per Share		Record Date	Total Amount		Payment Date
March 25, 2010	$	0.0625	March 25, 2010	$	12,720	April 15, 2010
June 4, 2010		0.0625	June 25, 2010		12,641	July 15, 2010
September 15, 2010		0.0625	September 28, 2010		12,532	October 15, 2010
December 10, 2010		0.1875	December 27, 2010		37,514	January 14, 2011
March 11, 2011		0.1875	March 25, 2011		37,601	April 15, 2011
June 10, 2011		0.2500	June 24, 2011		50,694	July 15, 2011
September 8, 2011		0.2500	September 23, 2011		46,877	October 14, 2011
December 1, 2011		0.2500	December 23, 2011		43,180	January 13, 2012

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Segment Information (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Reconciliation of Adjusted OIBDA to Income before Income Taxes on a Consolidated Basis
Adjusted OIBDA									$ 934,912	$ 926,676	$ 822,579
Less: Depreciation and Amortization									319,499	304,205	277,186
Intangible Impairments									46,500	85,909
Loss (Gain) on disposal/write-down of property, plant and equipment, net									(2,286)	(10,987)	168
Interest Expense, Net									205,256	204,559	212,545
Other (Income) Expense, Net									13,043	8,768	(12,599)
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes									352,900	334,222	345,279
Segment Reporting Information
Total Revenues	741,837	768,306	758,551	746,009	729,168	725,649	718,536	718,996	3,014,703	2,892,349	2,774,384
Total Long-Lived Assets	5,126,808				5,203,931				5,126,808	5,203,931	5,635,409
United States
Segment Reporting Information
Total Revenues									1,984,805	1,958,820	1,925,424
Total Long-Lived Assets	3,306,574				3,341,241				3,306,574	3,341,241	3,736,626
United Kingdom
Segment Reporting Information
Total Revenues									307,905	295,462	292,685
Total Long-Lived Assets	529,239				552,309				529,239	552,309	617,141
Canada
Segment Reporting Information
Total Revenues									244,337	231,477	196,246
Total Long-Lived Assets	434,517				448,485				434,517	448,485	425,838
Other International
Segment Reporting Information
Total Revenues									477,656	406,590	360,029
Total Long-Lived Assets	$ 856,478				$ 861,896				$ 856,478	$ 861,896	$ 855,804

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401(k) Plans

12 Months Ended

Dec. 31, 2011

401(k) Plans

401(k) Plans

12. 401(k) Plans

        We have a defined contribution plan, which generally covers all non-union U.S. employees meeting certain service requirements. Eligible employees may elect to defer from 1% to 25% of compensation per pay period up to the amount allowed by the Internal Revenue Code. In addition, IME operates a defined contribution plan, which is similar to the U.S.'s 401(k) Plan. We make matching contributions based on the amount of an employee's contribution in accordance with the plan documents. We have expensed $11,508, $14,282 and $18,133 for the years ended December 31, 2009, 2010 and 2011, respectively.

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Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2011

Worldwide Digital Business, a reporting unit

Discontinued operation disclosures

Summarized results of operations and carrying amounts of the major classes of assets and liabilities

	Years Ended December 31,
	2009			2010			2011(1)
Total Revenues	$	201,651		$	203,479		$	79,199
Loss Before Benefit for Income Taxes of Discontinued Operations	$	(14,959	)	$	(235,161	)	$	(31,094	)
Benefit for Income Taxes		(4,791	)		(19,682	)		(13,744	)
Loss from Discontinued Operations, Net of Tax	$	(10,168	)	$	(215,479	)	$	(17,350	)
Gain on Sale of Discontinued Operations	$	—		$	—		$	243,861
Provision for Income Taxes		—			—			45,126
Gain on Sale of Discontinued Operations, Net of Tax	$	—		$	—		$	198,735
Total (Loss) Income from Discontinued Operations
and Sale, Net of Tax	$	(10,168	)	$	(215,479	)	$	181,385

(1)

Includes the Digital Business results of operations through June 2, 2011, the date the Digital Sale was consummated.

	December 31, 2010		June 2, 2011
Accounts receivable, net	$	41,418	$	43,893
Deferred income taxes		1,726		1,542
Prepaid expenses and other		6,585		6,533
Current assets of discontinued operations		49,729		51,968
Property, plant and equipment, net		39,539		37,882
Goodwill, net		35,699		35,699
Deferred income taxes		13,934		13,485
Other assets, net		45,889		41,146
Non-current assets of discontinued operations		135,061		128,212
Assets of discontinued operations	$	184,790	$	180,180
Accounts payable	$	15,848	$	9,665
Accrued expenses		8,879		7,824
Deferred revenue		27,638		31,755
Current liabilities of discontinued operations		52,365		49,244
Other long-term liabilities		1,009		1,027
Deferred income taxes		—		—
Non-current liabilities of discontinued operations		1,009		1,027
Liabilities of discontinued operations	$	53,374	$	50,271

New Zealand Business

Discontinued operation disclosures

Summarized results of operations and carrying amounts of the major classes of assets and liabilities

	Years Ended December 31,
	2009			2010			2011(1)
Total Revenues	$	7,279		$	7,414		$	6,489
Loss Before Benefit for Income Taxes of Discontinued Operations	$	(1,451	)	$	(533	)	$	(4,726	)
Benefit for Income Taxes		—			—			(7,883	)
(Loss) Income from Discontinued Operations, Net of Tax	$	(1,451	)	$	(533	)	$	3,157
Gain on Sale of Discontinued Operations	$	—		$	—		$	1,884
Provision for Income Taxes		—			—			—
Gain on Sale of Discontinued Operations, Net of Tax	$	—		$	—		$	1,884
Total (Loss) Income from Discontinued Operations
and Sale, Net of Tax	$	(1,451	)	$	(533	)	$	5,041

(1)

Includes the New Zealand Business results of operations through October 3, 2011, the date the sale of the New Zealand Business was consummated.

	December 31, 2010		October 3, 2011
Accounts receivable, net	$	1,339	$	1,146
Prepaid expenses and other		1,034		897
Current assets of discontinued operations		2,373		2,043
Property, plant and equipment, net		3,746		3,632
Goodwill, net		6,128		1,136
Other assets, net		5,689		5,452
Non-current assets of discontinued operations		15,563		10,220
Assets of discontinued operations	$	17,936	$	12,263
Current portion of long-term debt	$	387	$	—
Accounts payable		263		236
Accrued expenses		1,382		524
Deferred revenue		113		67
Current liabilities of discontinued operations		2,145		827
Other long-term liabilities		24		24
Deferred income taxes		1,679		1,659
Non-current liabilities of discontinued operations		1,703		1,683
Liabilities of discontinued operations	$	3,848	$	2,510

Italian Business

Discontinued operation disclosures

Summarized results of operations and carrying amounts of the major classes of assets and liabilities

	Years Ended December 31,
	2009			2010			2011
Total Revenues	$	25,468		$	18,284		$	15,353
Loss Before Benefit for Income Taxes of Discontinued Operations	$	(849	)	$	(3,756	)	$	(35,350	)
Benefit for Income Taxes		(330	)		(351	)		(2,104	)
Loss from Discontinued Operations, Net of Tax	$	(519	)	$	(3,405	)	$	(33,246	)
Total Loss from Discontinued Operations, Net of Tax	$	(519	)	$	(3,405	)	$	(33,246	)

	December 31, 2010		December 31, 2011
Accounts receivable, net	$	8,744	$	4,676
Prepaid expenses and other		1,738		602
Current assets of discontinued operations		10,482		5,278
Property, plant and equipment, net		7,583		—
Goodwill, net		2,576		—
Other assets, net		9,327		1,978
Non-current assets of discontinued operations		19,486		1,978
Assets of discontinued operations	$	29,968	$	7,256
Current portion of long-term debt	$	522	$	118
Accounts payable		1,324		563
Accrued expenses		2,386		2,552
Deferred revenue		20		41
Current liabilities of discontinued operations		4,252		3,274
Other long-term liabilities		339		43
Deferred income taxes		1,431		—
Non-current liabilities of discontinued operations		1,770		43
Liabilities of discontinued operations	$	6,022	$	3,317

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Discontinued Operations

12 Months Ended

Dec. 31, 2011

Discontinued Operations

Discontinued Operations

14. Discontinued Operations

Digital Operations

        In August 2010, we divested the Domain Name Product Line for approximately $11,400 in cash at closing which is included in cash flows from operating activities—discontinued operations. This represented the sale of assets (primarily customer contracts) of a product line. Total revenues of this product line for the year ended December 31, 2009 and the seven months ended July 31, 2010 were approximately $6,300 and $3,500, respectively. A gain in the amount of approximately $6,900 ($2,834, net of tax) was recorded during the quarter ended September 30, 2010 and is included in loss from discontinued operations, net of tax.

        During the quarter ended September 30, 2010, we concluded that events occurred and circumstances changed in our former worldwide digital business reporting unit that required us to conduct an impairment review. The primary factors contributing to our conclusion that we had a triggering event and a requirement to reassess our former worldwide digital business reporting unit goodwill for impairment included: (1) a reduction in forecasted revenue and operating results due to continued pressure on key parts of the business as a result of the weak economy; (2) reduced revenue and profit outlook for our eDiscovery service due to smaller average matter size and lower pricing; (3) a decision to discontinue certain software development projects; and (4) the sale of the Domain Name Product Line. As a result of the review, we recorded a provisional goodwill impairment charge associated with our former worldwide digital business reporting unit in the amount of $255,000 during the quarter ended September 30, 2010. We finalized the estimate in the fourth quarter of 2010, and we recorded an additional impairment of $28,785, for a total goodwill impairment charge of $283,785. For the year ended December 31, 2010, we allocated $85,909 of this charge to the retained technology escrow services business, based on a relative fair value basis, which charge continues to be included in our continuing results of operations as a component of intangible impairments in our consolidated statements of operations. As described in Note 9 to Notes to Consolidated Financial Statements, our technology escrow services business, which had been reported in our former worldwide digital business segment, is now reported as a component of our North American Business segment. In April 2011, we announced a comprehensive strategic plan, which included exploring strategic alternatives for our digital business, including a potential sale of the Digital Business.

        On June 2, 2011, IMI completed the sale of the Digital Business to Autonomy, pursuant to the Digital Sale Agreement. In the Digital Sale, Autonomy purchased (i) the shares of certain of IMI's subsidiaries through which IMI conducted the Digital Business and (ii) certain assets of IMI and its subsidiaries relating to our Digital Business. The Digital Sale qualified as discontinued operations because (a) the remaining direct gross cash inflows and outflows of the Digital Business by IMI post-close are not expected to be significant in relation to the direct gross cash inflows and outflows absent the Digital Sale and (b) there is no significant continuing involvement because IMI does not retain the ability to influence the operating and financial policies of the Digital Business. As a result, the financial position, operating results and cash flows of the Digital Business and the Domain Name Product Line, for all periods presented, including the gains on the sales, have been reported as discontinued operations for financial reporting purposes.

        Pursuant to the Digital Sale Agreement, IMI received approximately $395,400 in cash, consisting of the initial purchase price of $380,000 and a preliminary working capital adjustment of approximately $15,400, which remains subject to a customary post-closing adjustment based on the amount of working capital at closing. The purchase price for the Digital Sale will be increased on a dollar-for-dollar basis if the working capital balance at the time of closing exceeds the target amount of working capital as set forth in the Digital Sale Agreement and decreased on a dollar-for-dollar basis if such closing working capital balance is less than the target amount. We and Autonomy are in disagreement regarding the working capital adjustment in the Digital Sale Agreement. As a result, as contemplated by the Digital Sale Agreement, the matter is being referred to an independent third party accounting firm for determination of the appropriate adjustment amount. Transaction costs relating to the Digital Sale amounted to $7,387 ($774 of such costs were unpaid as of December 31, 2011). Additionally, $11,075 of inducements are payable to Autonomy and have been netted against the proceeds in calculating the gain on the Digital Sale ($6,000 of such amount was unpaid as of December 31, 2011). We used the net proceeds received from the Digital Sale to pay down amounts outstanding under our revolving credit facility. Also, a tax provision of $45,126 associated with the gain recorded on the Digital Sale was recorded for the year ended December 31, 2011. A gain on sale of discontinued operations in the amount of $243,861 ($198,735, net of tax) was recorded during the year ended December 31, 2011, as a result of the Digital Sale. Approximately $3,828 of cumulative translation adjustment associated with our Digital Business was reclassified from accumulated other comprehensive items, net and reduced the gain on the Digital Sale by the same amount.

        The table below summarizes certain results of operations of the Digital Business and the Domain Name Product Line:

	Years Ended December 31,
	2009			2010			2011(1)
Total Revenues	$	201,651		$	203,479		$	79,199
Loss Before Benefit for Income Taxes of Discontinued Operations	$	(14,959	)	$	(235,161	)	$	(31,094	)
Benefit for Income Taxes		(4,791	)		(19,682	)		(13,744	)
Loss from Discontinued Operations, Net of Tax	$	(10,168	)	$	(215,479	)	$	(17,350	)
Gain on Sale of Discontinued Operations	$	—		$	—		$	243,861
Provision for Income Taxes		—			—			45,126
Gain on Sale of Discontinued Operations, Net of Tax	$	—		$	—		$	198,735
Total (Loss) Income from Discontinued Operations
and Sale, Net of Tax	$	(10,168	)	$	(215,479	)	$	181,385

(1)

Includes the Digital Business results of operations through June 2, 2011, the date the Digital Sale was consummated.

        There have been no allocations of corporate general and administrative expenses to discontinued operations. In accordance with our policy, we have allocated corporate interest associated with all debt that is not specifically allocated to a particular component based on the proportion of the assets of the Digital Business and the Domain Name Product Line to our total consolidated assets at the applicable weighted average interest rate associated with such debt for such reporting period. Interest allocated to the Digital Business and the Domain Name Product Line and included in loss from discontinued operations amounted to $13,041, $14,336 and $2,396 for the years ended December 31, 2009, 2010 and 2011, respectively.

        The carrying amounts of the major classes of assets and liabilities of the Digital Business were as follows:

	December 31, 2010		June 2, 2011
Accounts receivable, net	$	41,418	$	43,893
Deferred income taxes		1,726		1,542
Prepaid expenses and other		6,585		6,533
Current assets of discontinued operations		49,729		51,968
Property, plant and equipment, net		39,539		37,882
Goodwill, net		35,699		35,699
Deferred income taxes		13,934		13,485
Other assets, net		45,889		41,146
Non-current assets of discontinued operations		135,061		128,212
Assets of discontinued operations	$	184,790	$	180,180
Accounts payable	$	15,848	$	9,665
Accrued expenses		8,879		7,824
Deferred revenue		27,638		31,755
Current liabilities of discontinued operations		52,365		49,244
Other long-term liabilities		1,009		1,027
Deferred income taxes		—		—
Non-current liabilities of discontinued operations		1,009		1,027
Liabilities of discontinued operations	$	53,374	$	50,271

        In connection with the Digital Sale, we entered into several other arrangements with Autonomy, including:

• •

  A reseller agreement with Autonomy that allows us to sell certain products and services of the Digital Business now owned by Autonomy and certain other Autonomy products and services (the "Products and Services") over a three year period beginning June 2, 2011. The reseller agreement provides for the payments to Autonomy of: (i) $3,500, which was paid on the closing of the Digital Sale; and (ii) $6,000 on June 2, 2012. Such amounts represent prepayments of amounts payable to Autonomy related to qualifying sales of Products and Services to new customers of the Digital Business and are non-refundable to the extent we do not achieve the requisite level of qualifying sales of Products and Services during the term of the reseller agreement.

  •

  A co-location agreement with Autonomy in which we will provide certain storage related services associated with certain data centers to Autonomy for a two year transitional period beginning June 2, 2011. Autonomy has the right to extend this period by two additional years upon six months notice prior to the end of the first two-year term.

  •

  A transitional services agreement to provide certain services, generally for a period no longer than six months, including general, administrative, finance, human resource and information technology services.

  •

  The payment by us to Autonomy of approximately $3,075 as of the closing for the purchase of certain Products and Services for our internal use.

        The revenues and corresponding expenses associated with the above agreements are reflected in our continuing operating results. None of these services gives us the ability to influence the operating and financial policies of the Digital Business. We have concluded that the direct cash flows associated with these agreements are not significant because they are estimated to represent less than 5% of both direct cash inflows and outflows of the Digital Business for the one-year period subsequent to the Digital Sale, and, therefore, we have reported the Digital Business as discontinued operations in the accompanying consolidated financial statements for all periods presented. We will continue to assess the cash flows associated with these agreements and our conclusion that the Digital Business be reported as discontinued operations until the first anniversary of the Digital Sale.

        In February 2010, we acquired the stock of Mimosa Systems, Inc. ("Mimosa"), a provider of enterprise-class digital content archiving solutions, for approximately $112,000 in cash and approximately $2,000 in fair value of options issued. Mimosa was subsequently disposed of in the sale of our Digital Business in June 2011. The purchase price paid by IMI for the Mimosa acquisition is included in cash flows from investing activities-discontinued operations in our fiscal year 2010 statement of cash flows.

New Zealand Business

        After further analysis subsequent to our April 2011 announcement of our comprehensive strategic plan, which includes reviewing select underperforming international markets, we committed in May 2011 to a plan to sell the New Zealand Business. During the second quarter of 2011, we recorded an impairment charge of $4,900 to write-down the long-lived assets of the New Zealand Business to its estimated net realizable value which is included in loss from discontinued operations. In the calculation of the carrying value of the New Zealand Business, we allocated the goodwill of our Australia/New Zealand reporting unit between Australia and New Zealand on a relative fair value basis. Additionally, we recorded a tax benefit of $7,883 during the year ended December 31, 2011 associated with the outside tax basis of the New Zealand Business, which is also reflected in loss from discontinued operations. No valuation allowance was provided against this benefit because such amount is recoverable against the capital gain associated with the Digital Sale. We completed the sale of the New Zealand Business on October 3, 2011 for a purchase price of approximately $10,000. We recorded a gain on the sale of discontinued operations associated with the New Zealand Business of $1,884 during the fourth quarter of 2011 which primarily represents cumulative translation adjustment associated with our New Zealand operations which was reclassified from accumulated other comprehensive items, net and increased the gain on the sale of New Zealand by that same amount. The New Zealand Business was previously included within the International Business segment. For all periods presented, the financial position, operating results and cash flows of the New Zealand Business, including the gain on the sale, have been reported as discontinued operations for financial reporting purposes.

        The table below summarizes certain results of operations of the New Zealand Business:

	Years Ended December 31,
	2009			2010			2011(1)
Total Revenues	$	7,279		$	7,414		$	6,489
Loss Before Benefit for Income Taxes of Discontinued Operations	$	(1,451	)	$	(533	)	$	(4,726	)
Benefit for Income Taxes		—			—			(7,883	)
(Loss) Income from Discontinued Operations, Net of Tax	$	(1,451	)	$	(533	)	$	3,157
Gain on Sale of Discontinued Operations	$	—		$	—		$	1,884
Provision for Income Taxes		—			—			—
Gain on Sale of Discontinued Operations, Net of Tax	$	—		$	—		$	1,884
Total (Loss) Income from Discontinued Operations
and Sale, Net of Tax	$	(1,451	)	$	(533	)	$	5,041

(1)

Includes the New Zealand Business results of operations through October 3, 2011, the date the sale of the New Zealand Business was consummated.

        The carrying amounts of the major classes of assets and liabilities of the New Zealand Business were as follows:

	December 31, 2010		October 3, 2011
Accounts receivable, net	$	1,339	$	1,146
Prepaid expenses and other		1,034		897
Current assets of discontinued operations		2,373		2,043
Property, plant and equipment, net		3,746		3,632
Goodwill, net		6,128		1,136
Other assets, net		5,689		5,452
Non-current assets of discontinued operations		15,563		10,220
Assets of discontinued operations	$	17,936	$	12,263
Current portion of long-term debt	$	387	$	—
Accounts payable		263		236
Accrued expenses		1,382		524
Deferred revenue		113		67
Current liabilities of discontinued operations		2,145		827
Other long-term liabilities		24		24
Deferred income taxes		1,679		1,659
Non-current liabilities of discontinued operations		1,703		1,683
Liabilities of discontinued operations	$	3,848	$	2,510

Italian Business

        After further analysis subsequent to our April 2011 announcement of our comprehensive strategic plan, which includes reviewing select underperforming international markets, we committed in December 2011 to a plan to sell the Italian Business. In the calculation of the carrying value of the Italian Business, we allocated the goodwill of our Western European reporting unit between the Italian Business and the remainder of this reporting unit on a relative fair value basis. Additionally, in conjunction with the goodwill impairment analysis performed associated with our Western Europe reporting unit, we performed an impairment test on the long-lived assets of our Italian Business in the third quarter of 2011. The undiscounted cash flows from the Italian Business were lower than the carrying value of the long-lived assets associated with the operations of the Italian Business and resulted in the requirement to fair value the long-lived assets of this lower level component. As a result, we recorded write-offs of other intangible assets, primarily customer relationship values of $8,000, and certain write-downs to property, plant and equipment (primarily racking) long-lived assets in Italy of $6,600 in the third quarter of 2011, which are included in loss from discontinued operations. We allocated $2,500 of the Western Europe goodwill impairment charge to the Italian Business which is also included in loss from discontinued operations for the year ended December 31, 2011. The Italian Business was previously included within the International Business segment. Beginning in the fourth quarter of 2011, the Italian Business has been classified as held for sale and, for all periods presented, the financial position, operating results and cash flows of the Italian Business have been reported as discontinued operations for financial reporting purposes.

        The table below summarizes certain results of operations of the Italian Business:

	Years Ended December 31,
	2009			2010			2011
Total Revenues	$	25,468		$	18,284		$	15,353
Loss Before Benefit for Income Taxes of Discontinued Operations	$	(849	)	$	(3,756	)	$	(35,350	)
Benefit for Income Taxes		(330	)		(351	)		(2,104	)
Loss from Discontinued Operations, Net of Tax	$	(519	)	$	(3,405	)	$	(33,246	)
Total Loss from Discontinued Operations, Net of Tax	$	(519	)	$	(3,405	)	$	(33,246	)

        The carrying amounts of the major classes of assets and liabilities of the Italian Business were as follows:

	December 31, 2010		December 31, 2011
Accounts receivable, net	$	8,744	$	4,676
Prepaid expenses and other		1,738		602
Current assets of discontinued operations		10,482		5,278
Property, plant and equipment, net		7,583		—
Goodwill, net		2,576		—
Other assets, net		9,327		1,978
Non-current assets of discontinued operations		19,486		1,978
Assets of discontinued operations	$	29,968	$	7,256
Current portion of long-term debt	$	522	$	118
Accounts payable		1,324		563
Accrued expenses		2,386		2,552
Deferred revenue		20		41
Current liabilities of discontinued operations		4,252		3,274
Other long-term liabilities		339		43
Deferred income taxes		1,431		—
Non-current liabilities of discontinued operations		1,770		43
Liabilities of discontinued operations	$	6,022	$	3,317

XML

Commitments and Contingencies (Details 2)	3 Months Ended								12 Months Ended						12 Months Ended		1 Months Ended	12 Months Ended	1 Months Ended		63 Months Ended	12 Months Ended	1 Months Ended
	Dec. 31, 2011 USD ($) facility	Sep. 30, 2011 USD ($)	Jun. 30, 2011 USD ($)	Mar. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)	Sep. 30, 2010 USD ($)	Jun. 30, 2010 USD ($)	Mar. 31, 2010 USD ($)	Dec. 31, 2011 USD ($) facility	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)	Nov. 04, 2011 Italy facility	Dec. 31, 2011 Revenues Geographic concentration Chile Less than	Dec. 31, 2011 London Fire GBP (£)	Dec. 31, 2011 Chile Earthquake USD ($)	Dec. 31, 2010 Chile Earthquake USD ($)	Feb. 28, 2010 Chile Earthquake Chile facility building	Dec. 31, 2011 Litigation USD ($)	Sep. 30, 2010 Brazilian Litigation person lawsuit	Dec. 31, 2011 Brazilian Litigation USD ($) individual	Dec. 31, 2011 Government Contract Billing Matter USD ($)	Dec. 31, 2011 State of Massachusetts Notices of Intention to Assess USD ($)	Nov. 30, 2011 Italy Fire Italy facility
Self-Insurance Liabilities
Self-insurance accruals	$ 39,358,000				$ 43,901,000				$ 39,358,000	$ 43,901,000
Commitments and Contingencies
Settlement amount, lower end of range (in GBP per carton)														1
Settlement amount, upper end of range (in GBP per carton)														2
Loss contingencies, reasonably possible loss exposure in excess of the amount currently accrued																		51,300,000
Number of facilities damaged																	13						1
Number of buildings with structural damage																	5
Concentration risk, percentage													1.00%
Cumulative proceeds from insurance carriers															33,800,000
Proceeds from insurance carriers															6,800,000	27,000,000
Business interruption insurance recoveries															100,000
Gain (loss) on disposal/writedown of property, plant and equipment, net									2,286,000	10,987,000	(168,000)					10,200,000
Number of related lawsuits																			6
Number of individuals in labor union																			2,008
Total revenue billed and recorded since renewal of contract in October 2006	741,837,000	768,306,000	758,551,000	746,009,000	729,168,000	725,649,000	718,536,000	718,996,000	3,014,703,000	2,892,349,000	2,774,384,000										42,000,000
Notices of intention to assess, including tax and penalties (but excluding interest), related to assessment of income tax or net worth tax																						7,867,000
Number of global facilities	1,000								1,000
Number of leased facilities												10
Cash proceeds received from insurers related to sales of property, plant and equipment																14,800,000
Number of individuals to whom settlement amount is payable																				531
Settlement amount per individual																				2,000
Settlement amount if all individuals accept the settlement																				$ 1,100,000
Number of individuals not receiving proceeds in the settlement																				1,477

XML

CONSOLIDATED STATEMENTS OF EQUITY (USD $) In Thousands, except Share data, unless otherwise specified	Total	Comprehensive Income (Loss)	Common Stock Voting	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Items, Net	Noncontrolling Interests
Balance at Dec. 31, 2008	$ 1,814,769		$ 2,019	$ 1,250,064	$ 600,353	$ (41,215)	$ 3,548
Balance (in shares) at Dec. 31, 2008			201,931,332
Increase (Decrease) in Stockholders' Equity
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation, including tax benefit of $919, $2,252 and $5,532 for the period 2011, 2010 and 2009, respectively	48,609		16	48,593
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation (in shares)			1,615,425
Comprehensive Income (Loss):
Currency translation adjustment	69,455	69,455				68,876	579
Net income (loss)	219,379	219,379			217,950		1,429
Comprehensive Income (Loss)	288,834	288,834
Noncontrolling interests equity contributions	578						578
Noncontrolling interests dividends	(2,030)						(2,030)
Balance at Dec. 31, 2009	2,150,760		2,035	1,298,657	818,303	27,661	4,104
Balance (in shares) at Dec. 31, 2009			203,546,757
Increase (Decrease) in Stockholders' Equity
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation, including tax benefit of $919, $2,252 and $5,532 for the period 2011, 2010 and 2009, respectively	39,530		13	39,517
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation (in shares)			1,281,332
Stock options issued in connection with acquisition	1,997			1,997
Stock repurchases	(111,563)		(47)	(111,516)
Stock repurchases (in shares)			(4,764,023)
Parent cash dividends declared	(75,407)				(75,407)
Comprehensive Income (Loss):
Currency translation adjustment	2,288	2,288				1,821	467
Net income (loss)	(52,678)	(52,678)			(57,586)		4,908
Comprehensive Income (Loss)	(50,390)	(50,390)
Noncontrolling interests dividends	(2,062)						(2,062)
Balance at Dec. 31, 2010	1,952,865		2,001	1,228,655	685,310	29,482	7,417
Balance (in shares) at Dec. 31, 2010	200,064,066		200,064,066
Increase (Decrease) in Stockholders' Equity
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation, including tax benefit of $919, $2,252 and $5,532 for the period 2011, 2010 and 2009, respectively	102,986		39	102,947
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation (in shares)			3,930,318
Stock repurchases	(988,318)		(319)	(987,999)
Stock repurchases (in shares)			(31,853,418)
Parent cash dividends declared	(178,281)				(178,281)
Comprehensive Income (Loss):
Currency translation adjustment	(32,616)	(32,616)				(31,685)	(931)
Net income (loss)	399,592	399,592			395,538		4,054
Comprehensive Income (Loss)	366,976	366,976
Noncontrolling interests equity contributions	215						215
Noncontrolling interests dividends	(2,187)						(2,187)
Balance at Dec. 31, 2011	$ 1,254,256		$ 1,721	$ 343,603	$ 902,567	$ (2,203)	$ 8,568
Balance (in shares) at Dec. 31, 2011	172,140,966		172,140,966

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CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowances (in dollars)	$ 23,277	$ 20,747
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	172,140,966	200,064,066
Common stock, outstanding shares	172,140,966	200,064,066

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Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes

Income Taxes

7. Income Taxes

        The significant components of the deferred tax assets and deferred tax liabilities are presented below:

	December 31,
	2010			2011
Deferred Tax Assets:
Accrued liabilities	$	42,360		$	53,983
Deferred rent		23,253			21,889
Net operating loss carryforwards		52,099			58,113
Foreign tax credits		60,841			56,599
Valuation Allowance		(72,229	)		(72,239	)
Other		47,779			44,168
		154,103			162,513
Deferred Tax Liabilities:
Other assets, principally due to differences in amortization		(262,801	)		(281,060	)
Plant and equipment, principally due to differences in depreciation		(339,541	)		(345,576	)
		(602,342	)		(626,636	)
Net deferred tax liability	$	(448,239	)	$	(464,123	)

        The current and noncurrent deferred tax assets (liabilities) are presented below:

	December 31,
	2010			2011
Deferred tax assets	$	49,342		$	54,383
Deferred tax liabilities		(5,117	)		(11,148	)
Current deferred tax assets, net	$	44,225		$	43,235
Deferred tax assets	$	104,761		$	108,130
Deferred tax liabilities		(597,225	)		(615,488	)
Noncurrent deferred tax liabilities, net	$	(492,464	)	$	(507,358	)

        We have federal net operating loss carryforwards which begin to expire in 2020 through 2025, of $28,183 ($9,864, tax effected) at December 31, 2011 to reduce future federal taxable income. We have an asset for state net operating losses of $7,915 (net of federal tax benefit), which begins to expire in 2012 through 2025, subject to a valuation allowance of approximately 99%. We have assets for foreign net operating losses of $40,334, with various expiration dates, subject to a valuation allowance of approximately 69%. We also have foreign tax credits of $56,599, which begin to expire in 2014 through 2019, subject to a valuation allowance of approximately 65%. U.S. legislative changes in 2010 reduced the expected utilization of foreign tax credits which resulted in the requirement for a valuation allowance.

        Rollforward of valuation allowance is as follows:

Year Ended December 31,	Balance at Beginning of the Year		Charged (Credited) to Expense		Other Additions		Other Deductions			Balance at End of the Year
2009	$	36,392	$	1,416	$	3,158	$	(7,040	)	$	33,926
2010		33,926		39,545		—		(1,242	)		72,229
2011		72,229		9,844		—		(9,834	)		72,239

        We receive a tax deduction upon the exercise of non-qualified stock options or upon the disqualifying disposition by employees of incentive stock options and certain shares acquired under our employee stock purchase plan for the difference between the exercise price and the market price of the underlying common stock on the date of exercise or disqualifying disposition. The tax benefit for non-qualified stock options is included in the consolidated financial statements in the period in which compensation expense is recorded. The tax benefit associated with compensation expense recorded in the consolidated financial statements related to incentive stock options is recorded in the period the disqualifying disposition occurs. All tax benefits for awards issued prior to January 1, 2003 and incremental tax benefits in excess of compensation expense recorded in the consolidated financial statements are credited directly to equity and amounted to $5,532, $2,252 and $919 for the years ended December 31, 2009, 2010 and 2011, respectively.

        We have not recorded deferred taxes on book over tax outside basis differences related to certain foreign subsidiaries because such basis differences are not expected to reverse in the foreseeable future and we intend to reinvest indefinitely outside the U.S. These basis differences arose primarily through the undistributed book earnings of our foreign subsidiaries. The basis differences could be reversed through a sale of the subsidiaries, the receipt of dividends from subsidiaries and certain other events or actions on our part, each of which would result in an increase in our provision for income taxes. It is not practicable to calculate the amount of such basis differences.

        The components of income (loss) from continuing operations before provision (benefit) for income taxes are:

	Year Ended December 31,
	2009		2010		2011
U.S.	$	224,599	$	272,806	$	313,530
Canada		22,060		41,474		48,327
Foreign		98,620		19,942		(8,957	)
	$	345,279	$	334,222	$	352,900

        The provision (benefit) for income taxes consists of the following components:

	Year Ended December 31,
	2009		2010			2011
Federal—current	$	53,504	$	76,992		$	47,523
Federal—deferred		23,106		41,825			25,708
State—current		17,968		32,475			23,828
State—deferred		6,476		(851	)		(1,093	)
Foreign—current		11,955		20,350			31,748
Foreign—deferred		753		(3,308	)		(21,226	)
	$	113,762	$	167,483		$	106,488

        A reconciliation of total income tax expense and the amount computed by applying the federal income tax rate of 35% to income from continuing operations before provision (benefit) for income taxes for the years ended December 31, 2009, 2010 and 2011, respectively, is as follows:

	Year Ended December 31,
	2009			2010			2011
Computed "expected" tax provision	$	120,848		$	116,978		$	123,515
Changes in income taxes resulting from:
State taxes (net of federal tax benefit)		15,451			17,163			16,301
Increase in valuation allowance (net operating losses)		1,416			(2	)		12,601
Increase (Decrease) in valuation allowance (foreign tax credits)		—			39,547			(2,757	)
Impairment of goodwill and divestitures		—			29,772			10,254
Reserve reversal and audit settlements		—			(41,753	)		(32,989	)
Foreign tax rate differential		(25,442	)		(7,828	)		(34,867	)
United Kingdom thin cap, Subpart F income and foreign restructuring		4,194			8,247			5,663
Other, net		(2,705	)		5,359			8,767
	$	113,762		$	167,483		$	106,488

        Our effective tax rates for the years ended December 31, 2009, 2010 and 2011 were 32.9%, 50.1% and 30.2%, respectively. The primary reconciling items between the federal statutory rate of 35% and our overall effective tax rate for the year ended December 31, 2011 was the recognition of certain previously unrecognized tax benefits related to tax positions of prior years, expirations of statute of limitation periods and settlements with tax authorities in various jurisdictions and differences in the rates of tax at which our foreign earnings are subject, including foreign exchange gains and losses in different jurisdictions with different tax rates. This benefit was partially offset by state income taxes (net of federal benefit). Additionally, to a lesser extent, a goodwill impairment charge included in income from continuing operations as a component of intangible impairments in our consolidated statements of operations, of which a majority was non-deductible for tax purposes, is a reconciling item that impacts our effective tax rate. The primary reconciling item between the federal statutory rate of 35% and our overall effective tax rate for the year ended December 31, 2010 is a goodwill impairment charge included in income from continuing operations as a component of intangible impairments in our consolidated statements of operations, of which a majority was non-deductible for tax purposes. The negative impact of U.S. legislative changes reducing the expected utilization of foreign tax credits was offset by the recognition of certain previously unrecognized tax benefits due to expirations of statute of limitation periods and settlements with tax authorities in various jurisdictions. Additionally, to a lesser extent, state income taxes (net of federal benefit) and differences in the rates of tax at which our foreign earnings are subject, including foreign exchange gains and losses in different jurisdictions with different tax rates, are also reconciling items and impact our effective tax rate. In 2009, we had significant unrealized foreign exchange gains and losses on intercompany loans and on debt and derivative instruments in different jurisdictions with different tax rates. For 2009, foreign currency gains were recorded in lower tax jurisdictions associated with the marking-to-market of intercompany loan positions while foreign currency losses were recorded in higher tax jurisdictions associated with the marking-to-market of debt and derivative instruments, which reduced the effective tax rate for the year ended December 31, 2009.

        The evaluation of an uncertain tax position is a two-step process. The first step is a recognition process whereby the company determines whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The second step is a measurement process whereby a tax position that meets the more likely than not recognition threshold is calculated to determine the amount of benefit to recognize in the financial statements. The tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement.

        We have elected to recognize interest and penalties associated with uncertain tax positions as a component of the provision (benefit) for income taxes in the accompanying consolidated statements of operations. We recorded $4,749, $(1,607) and $(8,477) for gross interest and penalties for the years ended December 31, 2009, 2010 and 2011, respectively.

        We had $11,610 and $2,819 accrued for the payment of interest and penalties as of December 31, 2010 and 2011, respectively.

        A summary of tax years that remain subject to examination by major tax jurisdictions is as follows:

Tax Year	Tax Jurisdiction
See Below	United States
2006 to present	Canada
2010 to present	United Kingdom

        The normal statute of limitations for U.S. federal tax purposes is three years from the date the tax return is filed. However, due to our net operating loss position, the U.S. government has the right to audit the amount of the net operating loss up to three years after we utilize the loss on our federal income tax return. We utilized losses from years beginning in 1996, 1998 and 1999 in our federal income tax returns for our 2008, 2009, and 2010 tax years, respectively. The normal statute of limitations for state purposes is between three to five years. However, certain of our state statute of limitations remain open for periods longer than this when audits are in progress.

        We are subject to examination by various tax authorities in jurisdictions in which we have significant business operations. We regularly assess the likelihood of additional assessments by tax authorities and provide for these matters as appropriate. As of December 31, 2010 and 2011, we had $59,891 and $31,408, respectively, of reserves related to uncertain tax positions included in other long-term liabilities in the accompanying consolidated balance sheets. Although we believe our tax estimates are appropriate, the final determination of tax audits and any related litigation could result in favorable or unfavorable changes in our estimates.

        A reconciliation of unrecognized tax benefits is as follows:

Gross tax contingencies—December 31, 2008	$	84,566
Gross additions based on tax positions related to the current year		3,166
Gross additions for tax positions of prior years		5,693
Gross reductions for tax positions of prior years		(720	)
Lapses of statutes		(4,460	)
Settlements		(90	)
Gross tax contingencies—December 31, 2009	$	88,155
Gross additions based on tax positions related to the current year		6,575
Gross additions for tax positions of prior years		9,759
Gross reductions for tax positions of prior years		(3,349	)
Lapses of statutes		(33,001	)
Settlements		(8,248	)
Gross tax contingencies—December 31, 2010	$	59,891
Gross additions based on tax positions related to the current year		6,593
Gross additions for tax positions of prior years		6,437
Gross reductions for tax positions of prior years		(30,316	)
Lapses of statutes		(6,268	)
Settlements		(4,929	)
Gross tax contingencies—December 31, 2011	$	31,408

        The reversal of these reserves of $31,408 ($23,514 net of federal tax benefit) as of December 31, 2011 will be recorded as a reduction of our income tax provision if sustained. We believe that it is reasonably possible that an amount up to approximately $10,688 of our unrecognized tax positions may be recognized by the end of 2012 as a result of a lapse of statute of limitations or upon closing and settling significant audits in various worldwide jurisdictions.

XML

Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2011	Feb. 10, 2012	Jun. 30, 2011
Document and Entity Information
Entity Registrant Name	IRON MOUNTAIN INC
Entity Central Index Key	0001020569
Document Type	10-K
Document Period End Date	Dec. 31, 2011
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 6,038,510,230.13
Entity Common Stock, Shares Outstanding		171,087,289
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	FY

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Quarterly Results of Operations (Unaudited)

12 Months Ended

Dec. 31, 2011

Quarterly Results of Operations (Unaudited)

Quarterly Results of Operations (Unaudited)

8. Quarterly Results of Operations (Unaudited)

Quarter Ended	March 31			June 30			Sept. 30			Dec. 31
2010
Total revenues	$	718,996		$	718,536		$	725,649		$	729,168
Operating income (loss)		138,342			157,278			105,686			146,243
Income (loss) from continuing operations		32,355			49,252			27,202			57,930
Total income (loss) from discontinued operations		(7,378	)		(8,435	)		(178,930	)		(24,674	)
Net income (loss)		24,977			40,817			(151,728	)		33,256
Net income (loss) attributable to Iron Mountain Incorporated		24,704			40,357			(154,687	)		32,040(1)
Earnings (losses) per Share-Basic
Income (loss) per share from continuing operations		0.16			0.24			0.14			0.29
Total income (loss) per share from discontinued operations		(0.04	)		(0.04	)		(0.89	)		(0.12	)
Net income (loss) per share attributable to Iron Mountain Incorporated		0.12			0.20			(0.77	)		0.16
Earnings (losses) per Share-Diluted
Income (loss) per share from continuing operations		0.16			0.24			0.14			0.29
Total income (loss) per share from discontinued operations		(0.04	)		(0.04	)		(0.89	)		(0.12	)
Net income (loss) per share attributable to Iron Mountain Incorporated		0.12			0.20			(0.77	)		0.16
2011
Total revenues	$	746,009		$	758,551		$	768,306		$	741,837
Operating income (loss)		137,600			148,937			135,199			149,463
Income (loss) from continuing operations		81,176			67,460			50,394			47,382
Total income (loss) from discontinued operations		(6,557	)		185,587			(12,469	)		(13,381	)
Net income (loss)		74,619			253,047			37,925			34,001
Net income (loss) attributable to Iron Mountain Incorporated		73,460			252,684			37,338			32,056
Earnings (losses) per Share-Basic
Income (loss) per share from continuing operations		0.41			0.33			0.26			0.26
Total income (loss) per share from discontinued operations		(0.03	)		0.92			(0.06	)		(0.07	)
Net income (loss) per share attributable to Iron Mountain Incorporated		0.37			1.25			0.19			0.18
Earnings (losses) per Share-Diluted
Income (loss) per share from continuing operations		0.40			0.33			0.26			0.26
Total income (loss) per share from discontinued operations		(0.03	)		0.91			(0.06	)		(0.07	)
Net income (loss) per share attributable to Iron Mountain Incorporated		0.37			1.24			0.19			0.18

(1)

The change in net income (loss) attributable to Iron Mountain Incorporated in the fourth quarter of 2010 compared to the third quarter of 2010 is primarily related to the impact associated with the goodwill impairment charge of which $255,000 ($249,000, net of tax) was recorded in the third quarter of 2010 compared to $28,785 ($28,300, net of tax) recorded in the fourth quarter of 2010. See Note 14. Discrete tax benefits recorded in the third quarter compared to charges in the fourth quarter of 2010 related to unrealized foreign exchange gains and losses in different tax jurisdictions at different tax rates also contributed to the change. Additionally, to a lesser extent, reduced operating income primarily related to increased selling, general and administrative expenses offset by reduced interest expense related to the retirement of a portion of our 7³/4% Notes due 2015 in the third quarter of 2010 also contributed to the change.

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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	1 Months Ended								3 Months Ended								12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Revenues:
Storage																	$ 1,682,990	$ 1,598,718	$ 1,533,792
Service																	1,331,713	1,293,631	1,240,592
Total Revenues									741,837	768,306	758,551	746,009	729,168	725,649	718,536	718,996	3,014,703	2,892,349	2,774,384
Operating Expenses:
Cost of sales (excluding depreciation and amortization)																	1,245,200	1,192,862	1,201,871
Selling, general and administrative																	834,591	772,811	749,934
Depreciation and amortization																	319,499	304,205	277,186
Intangible Impairments																	46,500	85,909
Loss (Gain) on disposal/write-down of property, plant and equipment, net																	(2,286)	(10,987)	168
Total Operating Expenses																	2,443,504	2,344,800	2,229,159
Operating Income (Loss)									149,463	135,199	148,937	137,600	146,243	105,686	157,278	138,342	571,199	547,549	545,225
Interest Expense, Net (includes Interest Income of $2,563, $1,785 and $2,313 in 2009, 2010 and 2011, respectively)																	205,256	204,559	212,545
Other (Income) Expense, Net																	13,043	8,768	(12,599)
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes																	352,900	334,222	345,279
Provision (Benefit) for Income Taxes																	106,488	167,483	113,762
Income (Loss) from Continuing Operations									47,382	50,394	67,460	81,176	57,930	27,202	49,252	32,355	246,412	166,739	231,517
Income (Loss) from Discontinued Operations, Net of Tax																	(47,439)	(219,417)	(12,138)
Gain (Loss) on Sale of Discontinued Operations, Net of Tax																	200,619
Net Income (Loss)									34,001	37,925	253,047	74,619	33,256	(151,728)	40,817	24,977	399,592	(52,678)	219,379
Less: Net Income (Loss) Attributable to Noncontrolling Interests																	4,054	4,908	1,429
Net Income (Loss) Attributable to Iron Mountain Incorporated									$ 32,056	$ 37,338	$ 252,684	$ 73,460	$ 32,040	$ (154,687)	$ 40,357	$ 24,704	$ 395,538	$ (57,586)	$ 217,950
Earnings (Losses) per Share-Basic:
Income (Loss) from Continuing Operations (in dollars per share)									$ 0.26	$ 0.26	$ 0.33	$ 0.41	$ 0.29	$ 0.14	$ 0.24	$ 0.16	$ 1.27	$ 0.83	$ 1.14
Total Income (Loss) from Discontinued Operations (in dollars per share)									$ (0.07)	$ (0.06)	$ 0.92	$ (0.03)	$ (0.12)	$ (0.89)	$ (0.04)	$ (0.04)	$ 0.79	$ (1.09)	$ (0.06)
Net Income (Loss) Attributable to Iron Mountain Incorporated (in dollars per share)									$ 0.18	$ 0.19	$ 1.25	$ 0.37	$ 0.16	$ (0.77)	$ 0.20	$ 0.12	$ 2.03	$ (0.29)	$ 1.07
Earnings (Losses) per Share-Diluted:
Income (Loss) from Continuing Operations (in dollars per share)									$ 0.26	$ 0.26	$ 0.33	$ 0.40	$ 0.29	$ 0.14	$ 0.24	$ 0.16	$ 1.26	$ 0.83	$ 1.13
Total Income (Loss) from Discontinued Operations (in dollars per share)									$ (0.07)	$ (0.06)	$ 0.91	$ (0.03)	$ (0.12)	$ (0.89)	$ (0.04)	$ (0.04)	$ 0.78	$ (1.09)	$ (0.06)
Net Income (Loss) Attributable to Iron Mountain Incorporated (in dollars per share)									$ 0.18	$ 0.19	$ 1.24	$ 0.37	$ 0.16	$ (0.77)	$ 0.20	$ 0.12	$ 2.02	$ (0.29)	$ 1.07
Weighted Average Common Shares Outstanding-Basic (in shares)																	194,777	201,991	202,812
Weighted Average Common Shares Outstanding-Diluted (in shares)																	195,938	201,991	204,271
Dividends Declared per Common Share (in dollars per share)	$ 0.2500	$ 0.2500	$ 0.2500	$ 0.1875	$ 0.1875	$ 0.0625	$ 0.0625	$ 0.0625									$ 0.9375	$ 0.3750

XML

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2011

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

• a.

  Principles of Consolidation and Change in Accounting Principle

        The accompanying financial statements reflect our financial position, results of operations and cash flows on a consolidated basis. Prior to January 1, 2010, the financial position and results of operations of the operating subsidiaries of Iron Mountain Europe (Group) Limited (collectively referred to as "IME"), our European business, were consolidated based on IME's fiscal year ended October 31. Effective January 1, 2010, we changed the fiscal year-end (and the reporting period for consolidation purposes) of IME to coincide with IMI's fiscal year-end of December 31. We believe that the change in accounting principle related to the elimination of the two-month reporting lag for IME is preferable because it results in more contemporaneous reporting of events and results related to IME. In accordance with applicable accounting literature, a change in subsidiary year-end is treated as a change in accounting principle and requires retrospective application. The impact of the change was not material to the results of operations for the previously reported annual and interim periods prior to January 1, 2010, and, thus, those results have not been revised. There is, however, a charge of $4,711 recorded to other expense (income), net in the year ended December 31, 2010 to recognize the immaterial difference arising from the change. Had the annual financial statements been revised, operating income (loss), income (loss) from continuing operations before provision (benefit) for income taxes and net income (loss) attributable to Iron Mountain Incorporated in calendar 2009 would have been increased by $3,714, $7,041 and $4,957, respectively. In addition, revenue, operating income (loss), income (loss) from continuing operations before provision (benefit) for income taxes and net income (loss) attributable to Iron Mountain Incorporated for the year ended December 31, 2010 would not have changed materially had we not eliminated the two-month reporting lag. There were no significant, infrequent or unusual items in the IME two-month period ended December 31, 2009. All intercompany account balances have been eliminated.

• b.

  Use of Estimates

        The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires us to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities at the date of the financial statements and for the period then ended. On an ongoing basis, we evaluate the estimates used. We base our estimates on historical experience, actuarial estimates, current conditions and various other assumptions that we believe to be reasonable under the circumstances. These estimates form the basis for making judgments about the carrying values of assets and liabilities and are not readily apparent from other sources. Actual results may differ from these estimates.

• c.

  Cash, Cash Equivalents and Restricted Cash

        Cash and cash equivalents include cash on hand and cash invested in 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 have restricted cash associated with a collateral trust agreement with our insurance carrier that was entered into in 2010 related to our worker's compensation self-insurance program. The restricted cash subject to this agreement was $35,105 and $35,110 as of December 31, 2010 and 2011, respectively, and is included in current assets on our consolidated balance sheets. Restricted cash consists primarily of U.S. Treasuries.

• d.

  Foreign Currency

        Local currencies are considered the functional currencies for our operations outside the U.S., with the exception of certain foreign holding companies and our financing center in Switzerland, whose functional currencies are the U.S. dollar. In those instances where the local currency is the functional currency, assets and liabilities are translated at period-end exchange rates, and revenues and expenses are translated at average exchange rates for the applicable period. Resulting translation adjustments are reflected in the accumulated other comprehensive items, net component of Iron Mountain Incorporated Stockholders' Equity and Noncontrolling Interests. 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, including those related to (a) our 7¹/4% GBP Senior Subordinated Notes due 2014, (b) our 6³/4% Euro Senior Subordinated Notes due 2018, (c) the borrowings in certain foreign currencies under our revolving credit agreement, and (d) certain foreign currency denominated intercompany obligations of our foreign subsidiaries to us and between our foreign subsidiaries, which are not considered permanently invested, are included in other expense (income), net, on our consolidated statements of operations. The total gain or loss on foreign currency transactions amounted to a net gain of $12,845, a net loss of $5,664 and a net loss of $17,352 for the years ended December 31, 2009, 2010 and 2011, respectively.

• e.

  Derivative Instruments and Hedging Activities

        Every derivative instrument is required to be recorded in the balance sheet as either an asset or a liability measured at its fair value. Periodically, we acquire derivative instruments that are intended to hedge either cash flows or values which are subject to foreign exchange or other market price risk and not for trading purposes. We have formally documented our hedging relationships, including identification of the hedging instruments and the hedged items, as well as our risk management objectives and strategies for undertaking each hedge transaction. Given the recurring nature of our revenues and the long-term nature of our asset base, we have the ability and the preference to use long-term, fixed interest rate debt to finance our business, thereby preserving our long-term returns on invested capital. We target approximately 75% of our debt portfolio to be fixed with respect to interest rates. Occasionally, we may use interest rate swaps as a tool to maintain our targeted level of fixed rate debt. In addition, we may use borrowings in foreign currencies, either obtained in the U.S. or by our foreign subsidiaries, to hedge foreign currency risk associated with our international investments. Sometimes we enter into currency swaps to temporarily hedge an overseas investment, such as a major acquisition, while we arrange permanent financing or to hedge our exposure due to foreign currency exchange movements related to our intercompany accounts with and between our foreign subsidiaries. As of December 31, 2010 and 2011, none of our derivative instruments contained credit-risk related contingent features.

• f.

  Property, Plant and Equipment

        Property, plant and equipment are stated at cost and depreciated using the straight-line method with the following useful lives:

Building and building improvements	5 to 40 years
Leasehold improvements	10 years or the life of the lease, whichever is shorter
Racking	2 to 20 years
Warehouse equipment	3 to 10 years
Vehicles	2 to 10 years
Furniture and fixtures	2 to 10 years
Computer hardware and software	3 to 5 years

        Property, plant and equipment (including capital leases in the respective category), at cost, consist of the following:

	December 31,
	2010		2011
Land	$	170,576	$	172,454
Buildings and building improvements		1,064,478		1,109,176
Leasehold improvements		469,324		474,965
Racking		1,368,218		1,420,180
Warehouse equipment/vehicles		362,663		355,951
Furniture and fixtures		76,971		79,193
Computer hardware and software		548,453		527,585
Construction in progress		100,727		93,090
	$	4,161,410	$	4,232,594

        Minor maintenance costs are expensed as incurred. Major improvements which extend the life, increase the capacity or improve the safety or the efficiency of property owned are capitalized. Major improvements to leased buildings are capitalized as leasehold improvements and depreciated.

        We develop various software applications for internal use. Computer software costs associated with internal use software are expensed as incurred until certain capitalization criteria are met. Payroll and related costs for employees who are directly associated with, and who devote time to, the development of internal use computer software projects (to the extent time is spent directly on the project) are capitalized and depreciated over the estimated useful life of the software. Capitalization begins when the design stage of the application has been completed and it is probable that the application will be completed and used to perform the function intended. Depreciation begins when the software is placed in service. Computer software costs that are capitalized are periodically evaluated for impairment. During the years ended December 31, 2009 and 2011, we wrote-off $600 (primarily in Corporate) and $3,500 (approximately $3,050 associated with our International Business segment and approximately $450 associated with our North American Business segment), respectively, of previously deferred software costs associated with internal use software development projects that were discontinued after implementation, which resulted in a loss on disposal/write-down of property, plant and equipment, net in the accompanying consolidated statement of operations.

        Entities are required to record the fair value of a liability for an asset retirement obligation in the period in which it is incurred. Asset retirement obligations represent the costs to replace or remove tangible long-lived assets required by law, regulatory rule or contractual agreement. When the liability is initially recorded, the entity capitalizes the cost by increasing the carrying amount of the related long-lived asset, which is then depreciated over the useful life of the related asset. The liability is increased over time through income such that the liability will equate to the future cost to retire the long-lived asset at the expected retirement date. Upon settlement of the liability, an entity either settles the obligation for its recorded amount or realizes a gain or loss upon settlement. Our obligations are primarily the result of requirements under our facility lease agreements which generally have "return to original condition" clauses which would require us to remove or restore items such as shred pits, vaults, demising walls and office build-outs, among others. The significant assumptions used in estimating our aggregate asset retirement obligation are the timing of removals, the probability of a requirement to perform, estimated cost and associated expected inflation rates that are consistent with historical rates and credit-adjusted risk-free rates that approximate our incremental borrowing rate.

        A reconciliation of liabilities for asset retirement obligations (included in other long-term liabilities) is as follows:

	December 31,
	2010			2011
Asset Retirement Obligations, beginning of the year	$	10,734		$	9,465
Liabilities Incurred		531			300
Liabilities Settled		(70	)		(774	)
Accretion Expense		1,254			1,327
Change in Probability Adjustment		(2,745	)		(176	)
Foreign Currency Exchange Movement		(239	)		(26	)
Asset Retirement Obligations, end of the year	$	9,465		$	10,116

• g.

  Goodwill and Other Intangible Assets

        Goodwill and intangible assets with indefinite lives are not amortized but are reviewed annually for impairment or more frequently if impairment indicators arise. Other than goodwill, we currently have no intangible assets that have indefinite lives and which are not amortized. Separable intangible assets that are not deemed to have indefinite lives are amortized over their useful lives. We periodically assess whether events or circumstances warrant a change in the life over which our intangible assets are amortized.

        We have selected October 1 as our annual goodwill impairment review date. We performed our annual goodwill impairment review as of October 1, 2009, 2010 and 2011 and noted no impairment of goodwill. However, as a result of interim triggering events as discussed below, we recorded provisional goodwill impairment charges in each of the third quarters of 2010 and 2011 in conjunction with the Digital Sale and associated with our Western European operations, respectively. These provisional goodwill impairment charges were finalized in the fourth quarters of the 2010 and 2011 fiscal years, respectively. As of December 31, 2011, no factors were identified that would alter our October 1, 2011 goodwill assessment. In making this assessment, we relied on a number of factors including operating results, business plans, anticipated future cash flows, transactions and marketplace data. There are inherent uncertainties related to these factors and our judgment in applying them to the analysis of goodwill impairment. When changes occur in the composition of one or more reporting units, the goodwill is reassigned to the reporting units affected based on their relative fair values.

        As discussed at Note 14, we recorded a goodwill impairment charge in 2010 associated with our former worldwide digital business reporting unit. For the year ended December 31, 2010, we allocated $85,909 of this charge to the technology escrow services business based on a relative fair value basis. This charge continues to be included in our continuing results of operations as a component of intangible impairments in our consolidated statements of operations as we retained this business following the Digital Sale. Our technology escrow services business had previously been reported in the former worldwide digital business segment and is now reported in the North American Business segment.

        In September 2011, as a result of certain changes we made in the manner in which our European operations are managed, we reorganized our reporting structure and reassigned goodwill among the revised reporting units. Previously, we tested goodwill impairment at the European level on a combined basis. As a result of the management and reporting changes, we concluded that we have three reporting units for our European operations: (1) the United Kingdom, Ireland and Norway ("UKI"); (2) Belgium, France, Germany, Luxembourg, Netherlands and Spain ("Western Europe"); and (3) the remaining countries in Europe ("Central Europe"). Due to these changes, we will perform all future goodwill impairment analysis on the new reporting unit basis. As a result of the restructuring of our reporting units, we concluded that we had an interim triggering event, and, therefore, we performed an interim goodwill impairment test for UKI, Western Europe and Central Europe in the third quarter of 2011 as of August 31, 2011. As required by GAAP, prior to our goodwill impairment analysis, we performed an impairment assessment on the long-lived assets within our UKI, Western Europe and Central Europe reporting units and noted no impairment, except for the Italian Business, which was included in our Western Europe reporting unit, and which is now included in discontinued operations as discussed in Note 14. Based on our analyses, we concluded that the goodwill of our UKI and Central Europe reporting units was not impaired. Our UKI and Central Europe reporting units had fair values that exceed their carrying values by 15.1% and 4.9%, respectively, as of August 31, 2011. Central Europe is still in the investment stage and accordingly its fair value does not exceed its carrying value by a significant margin at this point in time. A deterioration of the UKI or Central Europe businesses or their failure to achieve the forecasted results could lead to impairments in future periods. Our Western Europe reporting unit's fair value was less than its carrying value, and, as a result, we recorded a goodwill impairment charge of $46,500 included as a component of intangible impairments from continuing operations in our consolidated statements of operations for the year ended December 31, 2011. A tax benefit of approximately $5,449 was recorded associated with the Western Europe goodwill impairment charge for the year ended December 31, 2011 and is included in the provision (benefit) for income taxes from continuing operations in the accompanying consolidated statement of operations. See Note 14 for the portion of the charge allocated to the Italian Business based on a relative fair value basis.

        Our reporting units at which level we performed our goodwill impairment analysis as of October 1, 2010 were as follows: North America; Europe; Latin America; Australia; Joint Ventures (which includes India, the various joint ventures in Southeast Asia and Russia (referred to as "Joint Ventures")); and Business Process Management ("BPM"). Given their similar economic characteristics, products, customers and processes, (1) the United Kingdom, Ireland and Norway and (2) the countries of Continental Europe (excluding Joint Ventures), each a reporting unit, have been aggregated as Europe and tested as one for goodwill impairment. As of December 31, 2010, the carrying value of goodwill, net amounted to $1,750,420, $438,344, $29,787 and $61,010 for North America, Europe, Latin America and Australia, respectively. Our Joint Ventures and BPM reporting units had no goodwill as of December 31, 2010. Our reporting units at which level we performed our goodwill impairment analysis as of October 1, 2011 were as follows: North America; UKI; Western Europe; Central Europe; Latin America; Australia; and Joint Ventures. As of December 31, 2011, the carrying value of goodwill, net amounted to $1,748,879, $306,150, $46,439, $63,781, $27,322, and $61,697 for North America, UKI, Western Europe, Central Europe, Latin America and Australia, respectively. Our Joint Ventures reporting unit has no goodwill as of December 31, 2011. Our North America, Latin America and Australia reporting units had estimated fair values as of October 1, 2011 that exceeded their carrying values by greater than 40%.

        Reporting unit valuations have been calculated using an income approach based on the present value of future cash flows of each reporting unit or a combined approach based on the present value of future cash flows and market and transaction multiples of revenues and earnings. The income approach incorporates many assumptions including future growth rates, discount factors, expected capital expenditures and income tax cash flows. Changes in economic and operating conditions impacting these assumptions could result in goodwill impairments in future periods. In conjunction with our annual goodwill impairment reviews, we reconcile the sum of the valuations of all of our reporting units to our market capitalization as of such dates.

        The changes in the carrying value of goodwill attributable to each reportable operating segment for the years ended December 31, 2010 and 2011 is as follows:

	North American Business			International Physical Business			Total Consolidated
Gross Balance as of December 31, 2009	$	1,996,959		$	565,717		$	2,562,676
Non-deductible goodwill acquired during the year		1,700			4,030			5,730
Adjustments to purchase reserves		(401	)		—			(401	)
Fair value and other adjustments(1)		2,553			164			2,717
Currency effects		11,238			(27,532	)		(16,294	)
Gross Balance as of December 31, 2010		2,012,049			542,379			2,554,428
Deductible goodwill acquired during the year		1,398			—			1,398
Non-deductible goodwill acquired during the year		—			35,207			35,207
Fair value and other adjustments(2)		2,161			(865	)		1,296
Currency effects		(5,367	)		(12,677	)		(18,044	)
Gross Balance as of December 31, 2011	$	2,010,241		$	564,044		$	2,574,285
Accumulated Amortization Balance as of December 31, 2009	$	175,158		$	14,199		$	189,357
Goodwill impairment		85,909			—			85,909
Currency effects		562			(961	)		(399	)
Accumulated Amortization Balance as of December 31, 2010		261,629			13,238			274,867
Goodwill impairment		—			46,500			46,500
Currency effects		(267	)		(1,083	)		(1,350	)
Accumulated Amortization Balance as of December 31, 2011	$	261,362		$	58,655		$	320,017
Net Balance as of December 31, 2009	$	1,821,801		$	551,518		$	2,373,319
Net Balance as of December 31, 2010	$	1,750,420		$	529,141		$	2,279,561
Net Balance as of December 31, 2011	$	1,748,879		$	505,389		$	2,254,268
Accumulated Goodwill Impairment Balance as of December 31, 2010	$	85,909		$	—		$	85,909
Accumulated Goodwill Impairment Balance as of December 31, 2011	$	85,909		$	46,500		$	132,409

(1)

Fair value and other adjustments primarily include $(711) of adjustments to property, plant and equipment, net, customer relationships and deferred income taxes, as well as $1,428 of cash paid related to prior year's acquisitions and $2,000 of contingent earn-out obligations accrued and unpaid as of December 31, 2010 related to a 2007 acquisition.

(2)

Fair value and other adjustments primarily include $(835) of adjustments to property, plant and equipment, net, customer relationships and deferred income taxes, as well as $131 of cash paid related to prior year's acquisitions and $2,000 of contingent earn-out obligations accrued and unpaid as of December 31, 2011 related to a 2007 acquisition.

h.

Long-Lived Assets

        We review long-lived assets and all amortizable intangible assets for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable. Recoverability of these assets is determined by comparing the forecasted undiscounted net cash flows of the operation to which the assets relate to their carrying amount. The operations are generally distinguished by the business segment and geographic region in which they operate. If the operation is determined to be unable to recover the carrying amount of its assets, then intangible assets are written down first, followed by the other long-lived assets of the operation, to fair value. Fair value is determined based on discounted cash flows or appraised values, depending upon the nature of the assets.

        Consolidated loss on disposal/write-down of property, plant and equipment, net of $168 in the year ended December 31, 2009 consisted primarily of a gain on disposal of a building in our International Business segment of approximately $1,900 in France, offset by losses on the write-down of certain facilities of approximately $1,000 in our North American Business segment, $700 in our International Business segment and $300 in Corporate (associated with discontinued products after implementation). Consolidated gain on disposal/write-down of property, plant and equipment, net of $10,987 in the year ended December 31, 2010 consisted primarily of a gain of approximately $10,200 as a result of the settlement with our insurers in connection with a portion of the property component of our claim related to the Chilean earthquake in the third and fourth quarter of 2010, gains of approximately $3,200 in North America primarily related to the disposition of certain owned equipment and a gain on disposal of a building in our International Business segment of approximately $1,300 in the United Kingdom, offset by approximately $1,000 of asset write-downs associated with our Latin American operations and approximately $2,600 of impairment losses primarily related to certain owned facilities in North America. Consolidated gain on disposal/write-down of property, plant and equipment, net of $2,286 in the year ended December 31, 2011 consisted primarily of a gain of approximately $3,200 related to the disposition of a facility in Canada and a gain of approximately $3,000 on the retirement of leased vehicles accounted for as capital lease assets associated with our North American Business segment, offset by a loss associated with discontinued use of certain third-party software licenses of approximately $3,500 (approximately $3,050 associated with our International Business segment and approximately $450 associated with our North American Business segment).

• i.

  Customer Relationships and Acquisition Costs and Other Intangible Assets

        Costs related to the acquisition of large volume accounts are capitalized. Initial costs incurred to transport the boxes to one of our facilities, which includes labor and transportation charges, are amortized over periods ranging from one to 30 years (weighted average of 25 years at December 31, 2011), and are included in depreciation and amortization in the accompanying consolidated statements of operations. Payments to a customer's current records management vendor or direct payments to a customer are amortized over periods ranging from one to 10 years (weighted average of four years at December 31, 2011) to the storage and service revenue line items in the accompanying consolidated statements of operations. If the customer terminates its relationship with us, the unamortized cost is charged to expense or revenue. However, in the event of such termination, we generally collect, and record as income, permanent removal fees that generally equal or exceed the amount of the unamortized costs. Customer relationship intangible assets acquired through business combinations, which represents the majority of the balance, are amortized over periods ranging from 10 to 30 years (weighted average of 19 years at December 31, 2011). Amounts allocated in purchase accounting to customer relationship intangible assets are calculated based upon estimates of their fair value utilizing an income approach based on the present value of future cash flows. Other intangible assets, including noncompetition agreements, acquired core technology and trademarks, are capitalized and amortized over periods ranging from two to 10 years (weighted average of seven years at December 31, 2011).

        The gross carrying amount and accumulated amortization are as follows:

	December 31,
Gross Carrying Amount	2010		2011
Customer relationship and acquisition costs	$	533,223	$	593,901
Other intangible assets (included in other assets, net)		7,014		6,761
Accumulated Amortization
Customer relationship and acquisition costs	$	153,415	$	183,752
Other intangible assets (included in other assets, net)		4,348		4,899

        The amortization expense for the years ended December 31, 2009, 2010 and 2011 are as follows:

	Year Ended December 31,
	2009		2010		2011
Customer relationship and acquisition costs:
Amortization expense included in depreciation and amortization	$	23,104	$	24,435	$	27,900
Amortization expense charged to revenues		8,096		9,710		10,100
Other intangible assets:
Amortization expense included in depreciation and amortization		1,021		1,010		961

        Estimated amortization expense for existing intangible assets (excluding deferred financing costs, which are amortized through interest expense, of $5,969, $5,969, $5,512, $5,322 and $3,978 for 2012, 2013, 2014, 2015 and 2016, respectively) for the next five succeeding fiscal years is as follows:

	Estimated Amortization
	Included in Depreciation and Amortization		Charged to Revenues
2012	$	30,505	$	6,279
2013		29,618		4,149
2014		29,077		2,601
2015		28,758		1,187
2016		28,461		440

• j.

  Deferred Financing Costs

        Deferred financing costs are amortized over the life of the related debt using the effective interest rate method. If debt is retired early, the related unamortized deferred financing costs are written off in the period the debt is retired to other expense (income), net. As of December 31, 2010 and 2011, gross carrying amount of deferred financing costs was $50,242 and $54,826, respectively, and accumulated amortization of those costs was $21,096 and $19,028, respectively, and was recorded in other assets, net in the accompanying consolidated balance sheet.

• k.

  Accrued Expenses

        Accrued expenses (with items greater than 5% of total current liabilities shown separately) consist of the following:

	December 31,
	2010		2011
Interest	$	59,774	$	59,268
Payroll and vacation		76,979		75,384
Incentive compensation		26,285		62,550
Self-insured liabilities (Note 10.b.)		43,901		39,358
Income taxes		29,484		4,957
Other		146,247		177,314
	$	382,670	$	418,831

• l.

  Revenues

        Our revenues consist of storage revenues as well as service revenues and are reflected net of sales and value added taxes. Storage revenues, which are considered a key performance indicator for the information management services industry, consist primarily of recurring periodic charges related to the storage of materials or data (generally on a per unit basis). Service revenues are comprised of charges for related core service activities and a wide array of complementary products and services. Included in core service revenues are: (1) the handling of records, including the addition of new records, temporary removal of records from storage, refiling of removed records and the destruction of records; (2) courier operations, consisting primarily of the pickup and delivery of records upon customer request; (3) secure shredding of sensitive documents; and (4) other recurring services, including hybrid services and recurring project revenues. Our complementary services revenues include special project work, customer termination and permanent withdrawal fees, data restoration projects, fulfillment services, consulting services, technology services and product sales (including specially designed storage containers and related supplies). Our secure shredding revenues include the sale of recycled paper (included in complementary services revenues), the price of which can fluctuate from period to period, adding to the volatility and reducing the predictability of that revenue stream.

        We recognize revenue when the following criteria are met: persuasive evidence of an arrangement exists, services have been rendered, the sales price is fixed or determinable and collectability of the resulting receivable is reasonably assured. Storage and service revenues are recognized in the month the respective storage or service is provided, and customers are generally billed on a monthly basis on contractually agreed-upon terms. Amounts related to future storage or prepaid service contracts for customers where storage fees or services are billed in advance are accounted for as deferred revenue and recognized ratably over the applicable storage or service period or when the service is performed. Revenue from the sales of products, which is included as a component of service revenues, is recognized when products are shipped to the customer and title has passed to the customer. Revenues from the sales of products have historically not been significant.

• m.

  Rent Normalization

        We have entered into various leases for buildings that expire over various terms. Certain leases have fixed escalation clauses (excluding those tied to the consumer price index or other inflation-based indices) or other features (including return to original condition, primarily in the United Kingdom) which require normalization of the rental expense over the life of the lease resulting in deferred rent being reflected in the accompanying consolidated balance sheets. In addition, we have assumed various above and below market leases in connection with certain of our acquisitions. The difference between the present value of these lease obligations and the market rate at the date of the acquisition was recorded as a deferred rent liability or other long-term asset and is being amortized over the remaining lives of the respective leases.

• n.

  Stock-Based Compensation

        We record stock-based compensation expense, utilizing the straight-line method, for the cost of stock options, restricted stock, restricted stock units, performance units and shares of stock issued under the employee stock purchase plan (together, "Employee Stock-Based Awards").

        Stock-based compensation expense for Employee Stock-Based Awards included in the accompanying consolidated statements of operations for the years ended December 31, 2009, 2010 and 2011 was $18,703, including $3,493 in discontinued operations, ($14,716 after tax or $0.07 per basic and diluted share), $20,378, including $3,104 in discontinued operations, ($15,672 after tax or $0.08 per basic and diluted share) and $17,510, including $260 in discontinued operations, ($8,834 after tax or $0.05 per basic and diluted share), respectively.

        Stock-based compensation expense for Employee Stock-Based Awards included in the accompanying consolidated statements of operations related to continuing operations is as follows:

	Year Ended December 31,
	2009		2010		2011
Cost of sales (excluding depreciation and amortization)	$	248	$	730	$	914
Selling, general and administrative expenses		14,962		16,544		16,336
Total stock-based compensation	$	15,210	$	17,274	$	17,250

        The benefits associated with the tax deductions in excess of recognized compensation cost are required to be reported as a financing cash flow. This requirement reduces reported operating cash flows and increases reported financing cash flows. As a result, net financing cash flows from continuing operations included $5,532, $2,252 and $919 for the years ended December 31, 2009, 2010 and 2011, respectively, from the benefits of tax deductions in excess of recognized compensation cost. The tax benefit of any resulting excess tax deduction increases the Additional Paid-in Capital ("APIC") pool. Any resulting tax deficiency is deducted from the APIC pool.

Stock Options

        Under our various stock option plans, options were granted with exercise prices equal to the market price of the stock on the date of grant. The majority of our options become exercisable ratably over a period of five years and generally have a contractual life of ten years, unless the holder's employment is sooner terminated. Certain of the options we issue become exercisable ratably over a period of ten years and have a contractual life of 12 years, unless the holder's employment is sooner terminated. As of December 31, 2011, ten-year vesting options represented 7.3% of total outstanding options. Beginning in 2011, certain of the options we issue become exercisable ratably over a period of three years and have a contractual life of ten years, unless the holder's employment is sooner terminated. As of December 31, 2011, three-year vesting options represented 11.0% of total outstanding options. Our non-employee directors are considered employees for purposes of our stock option plans and stock option reporting. Options granted to our non-employee directors generally become exercisable after one year.

        In December 2008, we amended each of the Iron Mountain Incorporated 2002 Stock Incentive Plan, the Iron Mountain Incorporated 1997 Stock Option Plan, the LiveVault Corporation 2001 Stock Incentive Plan and the Stratify, Inc. 1999 Stock Plan (each a "Plan" and, collectively, the "Plans") to provide that any unvested options and other awards granted under each respective Plan shall vest immediately should an employee be terminated by the Company, or terminate his or her own employment for good reason (as defined in each Plan), in connection with a vesting change in control (as defined in each Plan). The Mimosa Systems, Inc. 2009 Equity Incentive Plan and the Mimosa Systems, Inc. 2003 Stock Plan were similarly amended in June 2010.

        A total of 37,536,442 shares of common stock have been reserved for grants of options and other rights under our various stock incentive plans. The number of shares available for grant at December 31, 2011 was 7,112,835.

        The weighted average fair value of options granted in 2009, 2010 and 2011 was $9.72, $7.71 and $7.42 per share, respectively. These values were estimated on the date of grant using the Black-Scholes option pricing model. The following table summarizes the weighted average assumptions used for grants in the year ended December 31:

Weighted Average Assumptions	2009		2010		2011
Expected volatility		32.1%		32.8%		33.4%
Risk-free interest rate		2.64%		2.48%		2.40%
Expected dividend yield		None		1.2%		3%
Expected life		6.4 Years		6.4 Years		6.3 Years

        Expected volatility is calculated utilizing daily historical volatility over a period that equates to the expected life of the option. The risk-free interest rate was based on the U.S. Treasury interest rates whose term is consistent with the expected life of the stock options. Beginning in the first quarter of 2010, expected dividend yield was considered in the option pricing model as a result of our new dividend program. The expected life (estimated period of time outstanding) of the stock options granted is estimated using the historical exercise behavior of employees.

        A summary of option activity for the year ended December 31, 2011 is as follows:

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 31, 2010		12,140,560		$	24.30
Granted		1,077,648			28.60
Exercised		(3,753,905	)		21.78
Forfeited		(2,226,605	)		25.90
Expired		(119,240	)		27.72
Outstanding at December 31, 2011		7,118,458		$	25.73		6.72	$	38,002
Options exercisable at December 31, 2011		3,749,481		$	25.19		5.66	$	22,446
Options expected to vest		3,103,537		$	26.36		7.91	$	14,245

        The following table provides the aggregate intrinsic value of stock options exercised for the years ended December 31, 2009, 2010 and 2011:

	Year Ended December 31,
	2009		2010		2011
Aggregate intrinsic value of stock options exercised	$	18,929	$	12,063	$	37,901

Restricted Stock and Restricted Stock Units

        Under our various stock option plans, we may also issue grants of restricted stock or restricted stock units ("RSUs"). Our restricted stock and RSUs generally have a three to five year vesting period. The fair value of restricted stock and RSUs is the excess of the market price of our common stock at the date of grant over the purchase price (which is typically zero).

        A summary of restricted stock and RSUs activity for the year ended December 31, 2011 is as follows:

	Restricted Stock and RSUs			Weighted- Average Grant-Date Fair Value
Non-vested at December 31, 2010		168,221		$	22.53
Granted		609,743			29.77
Vested		(39,844	)		23.69
Forfeited		(127,169	)		26.53
Non-vested at December 31, 2011		610,951		$	28.85

        The total fair value of restricted stock vested for the years ended December 31, 2009, 2010 and 2011 was $0, $13 and $13, respectively. No RSUs vested during 2009 and 2010. The total fair value of RSUs vested for the year ended December 31, 2011 was $931.

Performance Units

        Under our various stock option plans, we may also issue grants of performance units ("PUs"). The number of PUs earned will be determined based on our performance against predefined targets, which for 2011 were calendar year revenue growth and return on invested capital ("ROIC"). The range of payout is zero to 150% of the number of granted PUs. The number of PUs earned will be determined based on actual performance at the end of the one-year performance period, and the award will be settled in shares of our common stock, subject to cliff vesting, three years from the date of the original PU grant. Additionally, employees who are employed through the one-year anniversary of the date of grant and who reach both 55 years of age and 10 years of qualifying service (the "retirement criteria") shall immediately and completely vest in any PUs earned based on the actual achievement against the predefined targets as discussed above. As a result, PUs will be expensed over the shorter of (a) achievement of the retirement criteria, which such achievement may occur as early as one year after the date of grant, or (b) a maximum of three years.

        In 2011, we issued 154,239 PUs. During the one-year performance period, we will forecast the likelihood of achieving the annual revenue growth and ROIC predefined targets in order to calculate the expected PUs to be earned. We will record a compensation charge based on either the forecasted PUs to be earned (during the one-year performance period) or the actual PUs earned (at the one-year anniversary date) over the vesting period for each individual grant as described above. The performance unit liability is remeasured at each fiscal quarter-end during the vesting period using the estimated percentage of units earned multiplied by the closing market price of our common stock on the current period-end date and is pro-rated based on the amount of time passed in the vesting period. As of December 31, 2011, we expected 99.6% achievement of the predefined revenue and ROIC targets associated with the grants made in 2011 and the closing market price of our common stock was $30.80.

        A summary of PU activity for the year ended December 31, 2011 is as follows:

	PUs
Non-vested at December 31, 2010		—
Granted		154,239
Vested		—
Forfeited		(41,490	)
Non-vested at December 31, 2011		112,749

Employee Stock Purchase Plan

        We offer an employee stock purchase plan (the "ESPP") in which participation is available to substantially all U.S. and Canadian employees who meet certain service eligibility requirements. The ESPP provides a way for our eligible employees to become stockholders on favorable terms. The ESPP provides for the purchase of our common stock by eligible employees through successive offering periods. We generally have two six-month offering periods per year, the first of which begins June 1 and ends November 30 and the second of which begins December 1 and ends May 31. During each offering period, participating employees accumulate after-tax payroll contributions, up to a maximum of 15% of their compensation, to pay the exercise price of their options. Participating employees may withdraw from an offering period before the purchase date and obtain a refund of the amounts withheld as payroll deductions. At the end of the offering period, outstanding options are exercised, and each employee's accumulated contributions are used to purchase our common stock. The price for shares purchased under the ESPP is 95% of the fair market price at the end of the offering period, without a look-back feature. As a result, we do not recognize compensation cost for the ESPP shares purchased. The ESPP was amended and approved by our stockholders on May 26, 2005 and the number of shares available for purchase under the ESPP was increased to 3,487,500. For the years ended December 31, 2009, 2010 and 2011, there were 258,680 shares, 257,381 shares and 154,559 shares, respectively, purchased under the ESPP. The number of shares available for purchase under the ESPP at December 31, 2011 was 399,761.

        As of December 31, 2011, unrecognized compensation cost related to the unvested portion of our Employee Stock-Based Awards was $40,454 and is expected to be recognized over a weighted-average period of 2.9 years.

        We generally issue shares for the exercises of stock options, restricted stock, RSUs, PUs and shares under our ESPP from unissued reserved shares.

• o.

  Income Taxes

        Accounting for income taxes requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the tax and financial reporting basis of assets and liabilities and for loss and credit carryforwards. Valuation allowances are provided when recovery of deferred tax assets is not considered more likely than not. We have elected to recognize interest and penalties associated with uncertain tax positions as a component of the provision for income taxes in the accompanying consolidated statements of operations.

• p.

  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 options, warrants or convertible securities) that were outstanding during the period, unless the effect is antidilutive.

        The following table presents the calculation of basic and diluted income (loss) per share:

	Year Ended December 31,
	2009			2010			2011
Income (Loss) from continuing operations	$	231,517		$	166,739		$	246,412
Total income (loss) from discontinued operations (see Note 14)	$	(12,138	)	$	(219,417	)	$	153,180
Net income (loss) attributable to Iron Mountain Incorporated	$	217,950		$	(57,586	)	$	395,538
Weighted-average shares—basic		202,812,000			201,991,000			194,777,000
Effect of dilutive potential stock options		1,458,777			—			1,060,477
Effect of dilutive potential restricted stock, RSUs and PUs		41			—			100,136
Weighted-average shares—diluted		204,270,818			201,991,000			195,937,613
Earnings (Losses) per share—basic:
Income (Loss) from continuing operations	$	1.14		$	0.83		$	1.27
Total income (loss) from discontinued operations (see Note 14)	$	(0.06	)	$	(1.09	)	$	0.79
Net income (loss) attributable to Iron Mountain Incorporated—basic	$	1.07		$	(0.29	)	$	2.03
Earnings (Losses) per share—diluted:
Income (Loss) from continuing operations	$	1.13		$	0.83		$	1.26
Total income (loss) from discontinued operations (see Note 14)	$	(0.06	)	$	(1.09	)	$	0.78
Net income (loss) attributable to Iron Mountain Incorporated—diluted	$	1.07		$	(0.29	)	$	2.02
Antidilutive stock options, RSUs and PUs, excluded from the calculation		8,085,784			9,305,328			3,973,760

• q.

  New Accounting Pronouncements

        In September 2011, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") No. 2011-08, Intangibles—Goodwill and Other (Topic 350): Testing Goodwill for Impairment. ASU 2011-08 allows but does not require entities to first assess qualitatively whether it is necessary to perform the two-step goodwill impairment test. If an entity believes, as a result of its qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative two-step impairment test is required; otherwise, no further testing is required. ASU 2011-08 is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, with early adoption permitted. The adoption of this ASU 2011-08 will not have a material impact on our consolidated financial position, results of operations or cash flows.

• r.

  Allowance for Doubtful Accounts and Credit Memo Reserves

        We maintain an allowance for doubtful accounts and credit memos for estimated losses resulting from the potential inability of our customers to make required payments and potential disputes regarding billing and service issues. When calculating the allowance, we consider our past loss experience, current and prior trends in our aged receivables and credit memo activity, current economic conditions and specific circumstances of individual receivable balances. If the financial condition of our customers were to significantly change, resulting in a significant improvement or impairment of their ability to make payments, an adjustment of the allowance may be required. We consider accounts receivable to be delinquent after such time as reasonable means of collection have been exhausted. We charge-off uncollectible balances as circumstances warrant, generally, no later than one year past due.

        Rollforward of allowance for doubtful accounts and credit memo reserves is as follows:

Year Ended December 31,	Balance at Beginning of the Year		Credit Memos Charged to Revenue		Allowance for Bad Debts Charged to Expense		Other(1)			Deductions(2)			Balance at End of the Year
2009	$	16,412	$	39,018	$	8,994	$	1,006		$	(45,835	)	$	19,595
2010		19,595		42,204		11,801		(481	)		(52,372	)		20,747
2011		20,747		39,343		9,506		(205	)		(46,114	)		23,277

(1)

Primarily consists of recoveries of previously written-off accounts receivable, allowances of businesses acquired and the impact associated with currency translation adjustments.

(2)

Primarily consists of the write-off of accounts receivable.

• s.

  Concentrations of Credit Risk

        Financial instruments that potentially subject us to market risk consist principally of cash and cash equivalents (including money market funds and time deposits), restricted cash (primarily U.S. Treasuries) and accounts receivable. The only significant concentrations of liquid investments as of December 31, 2011 relate to cash and cash equivalents and restricted cash held on deposit with five global banks and one "Triple A" rated money market fund which we consider to be large, highly-rated investment-grade institutions. As per our risk management investment policy, we limit exposure to concentration of credit risk by limiting the amount invested in any one mutual fund or financial institution to a maximum of $50,000. As of December 31, 2011, our cash and cash equivalent and restricted cash balance was $214,955, including a money market fund and time deposits amounting to $181,823. A substantial portion of the money market fund is invested in U.S. Treasuries.

• t.

  Fair Value Measurements

        Entities are permitted under GAAP to elect to measure many financial instruments and certain other items at either fair value or cost. We did not elect the fair value measurement option for any of our financial assets or liabilities.

        Our financial assets or liabilities are 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 following tables provide the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2010 and 2011, respectively:

			Fair Value Measurements at December 31, 2010 Using
Description	Total Carrying Value at December 31, 2010		Quoted prices in active markets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)
Money Market Funds(1)	$	107,129	$	—		$	107,129		$	—
Time Deposits(1)		134,022		—			134,022			—
Trading Securities		9,215		8,527	(2)		688	(1)		—
Derivative Assets(3)		2,500		—			2,500			—
Derivative Liabilities(3)		2,440		—			2,440			—

			Fair Value Measurements at December 31, 2011 Using
Description	Total Carrying Value at December 31, 2011		Quoted prices in active markets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)
Money Market Funds(1)	$	35,110	$	—		$	35,110		$	—
Time Deposits(1)		146,713		—			146,713			—
Trading Securities		9,124		8,497	(2)		627	(1)		—
Derivative Assets(3)		2,803		—			2,803			—
Derivative Liabilities(3)		435		—			435			—

(1)

Money market funds and time deposits (including certain trading securities) are measured based on quoted prices for similar assets and/or subsequent transactions.

(2)

Securities are measured at fair value using quoted market prices.

(3)

Our derivative assets and liabilities primarily relate to short-term (six months or less) foreign currency contracts that we have entered into to hedge our intercompany exposures denominated in British pounds sterling and Australian dollars. We calculate the fair 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.

        Disclosures are required in the financial statements for items measured at fair value on a non-recurring basis. We did not have any material items that are measured at fair value on a non-recurring basis for the years ended December 31, 2010 and 2011, except goodwill calculated based on Level 3 inputs, as more fully disclosed at Note 2.g.

• u.

  Available-for-sale and Trading Securities

        We have one trust that holds marketable securities. Marketable securities are classified as available-for-sale or trading. As of December 31, 2010 and 2011, the fair value of the money market and mutual funds included in this trust amounted to $9,215 and $9,124, respectively, and were included in prepaid expenses and other in the accompanying consolidated balance sheets. We classified these marketable securities included in the trust as trading, and included in other expense (income), net in the accompanying consolidated statement of operations realized and unrealized net gains of $1,745, $1,221 and net losses of $321 for the years ended December 31, 2009, 2010 and 2011, respectively.

• v.

  Investments

        As of December 31, 2011, we have investments in joint ventures, including noncontrolling interests, in Iron Mountain A/S of 20% (Denmark), in Iron Mountain Arsivleme Hizmetleri A.S. of 40% (Turkey), in Sispace AG of 15% (Switzerland) and in Kelman Technologies Inc. of 25% (U.S. and Canada). These investments are accounted for using the equity method because we exercise significant influence over these entities and their operations. As of December 31, 2010 and 2011, the carrying value related to our equity investments was $9,663 and $3,499, respectively, included in other assets in the accompanying consolidated balance sheets.

• w.

  Accumulated Other Comprehensive Items, Net

        Accumulated other comprehensive items, net consists of foreign currency translation adjustments as of December, 31, 2010 and 2011.

• x.

  Other Expense (Income), Net

        Other expense (income), net consists of the following:

	Year Ended December 31,
	2009			2010		2011
Foreign currency transaction (gains) losses, net	$	(12,845	)	$	5,664	$	17,352
Debt extinguishment expense, net		3,031			1,792		993
Other, net		(2,785	)		1,312		(5,302	)
	$	(12,599	)	$	8,768	$	13,043

• y.

  Immaterial Restatement

        Subsequent to the issuance of the Company's 2010 financial statements, the Company's management identified a government contract billing error more fully discussed at Note 10.h., which resulted in an overstatement of prior years reported revenue by an amount currently estimated to be approximately $17,000 in the aggregate. While no prior period financial statement was materially misstated, we have determined that the cumulative impact of recording this adjustment would have significantly distorted our results for the year ended December 31, 2011. As a result, we have restated beginning retained earnings as of December 31, 2008 for the cumulative impact of activity prior to December 31, 2008 in the amount of $3,784. Additionally, we have restated our 2009 and 2010 consolidated statements of operations and consolidated statements of equity and our 2010 consolidated balance sheet to reflect the impact in those particular years. There was no change to the following lines of the 2009 and 2010 consolidated statements of cash flows: (1) cash flows from operating activities, (2) cash flows from investing activities and (3) cash flows from financing activities.

        The following table sets forth the effect of the immaterial restatement to certain line items of our consolidated statements of operations for the years ended December 31, 2009 and 2010:

	Year Ended December 31,
	2009			2010
Storage	$	(2,327	)	$	(2,955	)
Service		(2,486	)		(3,068	)
Total Revenues	$	(4,813	)	$	(6,023	)
Operating Income (Loss)	$	(4,813	)	$	(6,023	)
Income (Loss) from Continuing Operations before Provision (Benefit) for Income Taxes	$	(4,813	)	$	(6,023	)
Provision (Benefit) for Income Taxes	$	(1,886	)	$	(2,337	)
Income (Loss) from Continuing Operations	$	(2,927	)	$	(3,686	)
Net Income (Loss)	$	(2,927	)	$	(3,686	)
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	(2,927	)	$	(3,686	)
Earnings (Losses) per Share—Basic:
Income (Loss) from Continuing Operations	$	(0.01	)	$	(0.02	)
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	(0.01	)	$	(0.02	)
Earnings (Losses) per Share—Diluted:
Income (Loss) from Continuing Operations	$	(0.01	)	$	(0.02	)
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	(0.01	)	$	(0.02	)

        The following table sets forth the effect of the immaterial restatement to certain line items of our consolidated balance sheet as of December 31, 2010:

Prepaid Expenses and Other	$	6,660
Total Current Assets	$	6,660
Total Assets	$	6,660
Deferred Revenue	$	17,057
Total Current Liabilities	$	17,057
Retained Earnings	$	(10,397	)
Total Iron Mountain Incorporated Stockholders' Equity	$	(10,397	)
Total Equity	$	(10,397	)
Total Liabilities and Equity	$	6,660

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Nature of Business

12 Months Ended

Dec. 31, 2011

Nature of Business

Nature of Business

1. Nature of Business

        The accompanying financial statements represent the consolidated accounts of Iron Mountain Incorporated, a Delaware corporation ("IMI"), and its subsidiaries. We are a global full-service provider of information management and related services for all media in various locations throughout North America, Europe, Latin America and Asia Pacific. We have a diversified customer base comprised of commercial, legal, banking, health care, accounting, insurance, entertainment and government organizations.

        In August 2010, IMI divested the domain name management product line of our digital business (the "Domain Name Product Line"). On June 2, 2011, IMI completed the sale (the "Digital Sale") of our online backup and recovery, digital archiving and eDiscovery solutions businesses of our digital business (the "Digital Business") to Autonomy Corporation plc, a corporation formed under the laws of England and Wales ("Autonomy"), pursuant to a purchase and sale agreement dated as of May 15, 2011 among IMI, certain subsidiaries of IMI and Autonomy (the "Digital Sale Agreement"). The financial position, operating results and cash flows of the Domain Name Product Line and the Digital Business, for all periods presented, including the gains on the sales, have been reported as discontinued operations for financial reporting purposes. Additionally, on October 3, 2011, we sold our records management business in New Zealand (the "New Zealand Business"), and in December 2011, we committed to a plan to sell our records management business in Italy (the "Italian Business"). The financial position, operating results and cash flows of the New Zealand and Italian Businesses, including the gain on the sale of the New Zealand Business, for all periods presented, have been reported as discontinued operations for financial reporting purposes. See Note 14 for a further discussion of these events.

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Stockholders' Equity Matters

12 Months Ended

Dec. 31, 2011

Stockholders' Equity Matters

Stockholders' Equity Matters

13. Stockholders' Equity Matters

        Our board of directors has authorized up to $1,200,000 in repurchases of our common stock. All purchases are subject to stock price, market conditions, corporate and legal requirements and other factors. As of December 31, 2011, we had a remaining amount available for repurchase under our share repurchase program of $100,701, which represents approximately 2% in the aggregate of our outstanding common stock based on the closing stock price on such date.

        In February 2010, our board of directors adopted a dividend policy under which we intend to pay quarterly cash dividends on our common stock. Declaration and payment of future quarterly dividends is at the discretion of our board of directors. In 2010 and 2011, our board of directors declared the following dividends:

Declaration Date	Dividend Per Share		Record Date	Total Amount		Payment Date
March 25, 2010	$	0.0625	March 25, 2010	$	12,720	April 15, 2010
June 4, 2010		0.0625	June 25, 2010		12,641	July 15, 2010
September 15, 2010		0.0625	September 28, 2010		12,532	October 15, 2010
December 10, 2010		0.1875	December 27, 2010		37,514	January 14, 2011
March 11, 2011		0.1875	March 25, 2011		37,601	April 15, 2011
June 10, 2011		0.2500	June 24, 2011		50,694	July 15, 2011
September 8, 2011		0.2500	September 23, 2011		46,877	October 14, 2011
December 1, 2011		0.2500	December 23, 2011		43,180	January 13, 2012

        On March 23, 2011, our board of directors declared a dividend of one preferred stock purchase right ("Right") for each outstanding share of our common stock held by stockholders of record at the close of business on April 1, 2011. Each Right, once exercisable, entitles the registered holder to purchase one one-thousandth of a share of our preferred stock, designated as Series A Junior Participating Preferred Stock, par value $0.01 per share, at a price of $120.00 per one one-thousandth of a share, subject to certain adjustments. No shares of Series A Junior Participating Preferred Stock are outstanding as of December 31, 2011. The Rights will expire upon the close of business on the earliest to occur of: (i) March 22, 2013, (ii) the date on which the Rights are redeemed or exchanged by us in accordance with the rights agreement governing the Rights and (iii) the date of our 2012 annual meeting of stockholders if requisite stockholder approval of the rights agreement is not obtained at such meeting.

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Segment Information

12 Months Ended

Dec. 31, 2011

Segment Information

Segment Information

9. Segment Information

        As a result of the disposition of our Digital Business and New Zealand Business and our decision to sell the Italian Business as discussed in Note 14, we changed our reportable segments. The most significant of these changes is that the reportable segment previously referred to as the worldwide digital business is no longer reported separately in our management reporting as the operations associated with the Domain Name Product Line and the Digital Business are reported as discontinued operations. Also, the technology escrow services business, which we continue to own and operate and was previously reported in the former worldwide digital business segment, is now reported in the North American Business segment. Additionally, the International Business segment no longer includes the New Zealand Business and the Italian Business as these operations are reported as discontinued operations.

        Our operating segments and Corporate are as follows:

• •

  North American Business—information management services throughout the United States and Canada, including the storage of paper documents, as well as other media such as microfilm and microfiche, master audio and videotapes, film, X-rays and blueprints, including healthcare information services, vital records services, service and courier operations, and the collection, handling and disposal of sensitive documents for corporate customers ("Hard Copy"); the storage and rotation of backup computer media as part of corporate disaster recovery plans, including service and courier operations ("Data Protection"); information destruction services ("Destruction"); the scanning, imaging and document conversion services of active and inactive records ("Hybrid Services"); the storage, assembly, and detailed reporting of customer marketing literature and delivery to sales offices, trade shows and prospective customers' sites based on current and prospective customer orders ("Fulfillment") and technology escrow services that protect and manage source code.

  •

  Europe—information management services throughout Europe, including Hard Copy, Data Protection, Destruction (in the United Kingdom and Ireland) and Hybrid Services.

  •

  Latin America—information management services throughout Mexico, Brazil, Chile, Argentina and Peru, including Hard Copy, Data Protection, Destruction and Hybrid Services.

  •

  Asia Pacific—information management services throughout Australia, including Hard Copy, Data Protection, Destruction and Hybrid Services; and in certain cities in India, Singapore, Hong Kong-SAR and China, including Hard Copy and Data Protection.

  •

  Corporate—consists of costs related to executive and staff functions, including finance, human resources and information technology, which benefit the enterprise as a whole. These costs are primarily related to the general management of these functions on a corporate level and the design and development of programs, policies and procedures that are then implemented in the individual segments, with each segment bearing its own cost of implementation. Corporate also includes stock-based employee compensation expense associated with all Employee Stock-Based Awards.

        The Latin America, Asia Pacific and Europe operating segments have been aggregated given their similar economic characteristics, products, customers and processes and reported as one reportable segment, "International Business."

        An analysis of our business segment information and reconciliation to the consolidated financial statements is as follows:

	North American Business		International Business		Corporate			Total Consolidated
2009
Total Revenues	$	2,124,964	$	649,420	$	—		$	2,774,384
Depreciation and Amortization		174,096		69,768		33,322			277,186
Depreciation		162,400		57,570		33,091			253,061
Amortization		11,696		12,198		231			24,125
Adjusted OIBDA		866,356		120,482		(164,259	)		822,579
Total Assets(1)		4,695,013		1,667,266		488,878			6,851,157
Expenditures for Segment Assets		160,784		110,624		28,768			300,176
Capital Expenditures		153,273		105,876		28,768			287,917
Cash Paid for Acquisitions, Net of Cash Acquired		256		1,262		—			1,518
Additions to Customer Relationship and Acquisition Costs		7,255		3,486		—			10,741
2010
Total Revenues		2,193,464		698,885		—			2,892,349
Depreciation and Amortization		185,483		81,932		36,790			304,205
Depreciation		172,713		69,480		36,567			278,760
Amortization		12,770		12,452		223			25,445
Adjusted OIBDA		969,505		130,969		(173,798	)		926,676
Total Assets(1)		4,370,465		1,641,251		404,677			6,416,393
Expenditures for Segment Assets		135,825		115,496		34,571			285,892
Capital Expenditures		120,162		104,116		34,571			258,849
Cash Paid for Acquisitions, Net of Cash Acquired		5,675		8,166		—			13,841
Additions to Customer Relationship and Acquisition Costs		9,988		3,214		—			13,202
2011
Total Revenues		2,229,143		785,560		—			3,014,703
Depreciation and Amortization		180,763		104,815		33,921			319,499
Depreciation		168,549		88,432		33,657			290,638
Amortization		12,214		16,383		264			28,861
Adjusted OIBDA		961,973		164,212		(191,273	)		934,912
Total Assets(1)		4,194,850		1,646,701		199,707			6,041,258
Expenditures for Segment Assets		139,079		152,064		14,961			306,104
Capital Expenditures		117,338		76,856		14,961			209,155
Cash Paid for Acquisitions, Net of Cash Acquired		5,436		69,810		—			75,246
Additions to Customer Relationship and Acquisition Costs		16,305		5,398		—			21,703

(1)

Excludes all intercompany receivables or payables and investment in subsidiary balances.

        The accounting policies of the reportable segments are the same as those described in Note 2. Adjusted OIBDA for each segment is defined as operating income before depreciation, amortization, intangible impairments and (gain) loss on disposal/write-down of property, plant and equipment, net which are directly attributable to the segment. Internally, we use Adjusted OIBDA as the basis for evaluating the performance of, and allocating resources to, our operating segments.

        A reconciliation of Adjusted OIBDA to income from continuing operations before provision (benefit) for income taxes on a consolidated basis is as follows:

	Years Ended December 31,
	2009			2010			2011
Adjusted OIBDA	$	822,579		$	926,676		$	934,912
Less: Depreciation and Amortization		277,186			304,205			319,499
Intangible Impairments (See Note 2.g. and Note 14)		—			85,909			46,500
Loss (Gain) on Disposal/Write-down of
Property, Plant and Equipment, Net		168			(10,987	)		(2,286	)
Interest Expense, Net		212,545			204,559			205,256
Other (Income) Expense, Net		(12,599	)		8,768			13,043
Income from Continuing Operations before Provision (Benefit) for Income Taxes	$	345,279		$	334,222		$	352,900

        Information as to our operations in different geographical areas is as follows:

	Years Ended December 31,
	2009		2010		2011
Revenues:
United States	$	1,925,424	$	1,958,820	$	1,984,805
United Kingdom		292,685		295,462		307,905
Canada		196,246		231,477		244,337
Other International		360,029		406,590		477,656
Total Revenues	$	2,774,384	$	2,892,349	$	3,014,703
Long-lived Assets:
United States	$	3,736,626	$	3,341,241	$	3,306,574
United Kingdom		617,141		552,309		529,239
Canada		425,838		448,485		434,517
Other International		855,804		861,896		856,478
Total Long-lived Assets	$	5,635,409	$	5,203,931	$	5,126,808

        Information as to our revenues by product and service lines is as follows:

	Years Ended December 31,
	2009		2010		2011
Revenues:
Records Management(1)(2)	$	2,040,497	$	2,081,492	$	2,183,154
Data Protection & Recovery(1)(3)		483,909		531,580		522,632
Information Destruction(1)(4)		249,978		279,277		308,917
Total Revenues	$	2,774,384	$	2,892,349	$	3,014,703

(1)

Each of the service offerings within our product and service lines has a component of revenue that is storage related and a component that is service revenues, except the Information Destruction service offering, which does not have a storage component.

(2)

Includes Business Records Management, Compliant Records Management and Consulting Services, Hybrid Services, Fulfillment Services, Health Information Management Solutions, Film and Sound Archives and Energy Data Services.

(3)

Includes Data Protection & Recovery Services and Technology Escrow Services.

(4)

Includes Secure Shredding and Compliant Information Destruction.

XML

Selected Consolidated Financial Statements of Parent, Guarantors, Canada Company and Non-Guarantors

12 Months Ended

Dec. 31, 2011

Selected Consolidated Financial Statements of Parent, Guarantors, Canada Company and Non-Guarantors

Selected Consolidated Financial Statements of Parent, Guarantors, Canada Company and Non-Guarantors

5. 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 December 31, 2010 and 2011 and for the years ended December 31, 2009, 2010 and 2011.

        The Parent Notes and the Subsidiary Notes are guaranteed by the subsidiaries referred to below as the "Guarantors." These subsidiaries are wholly owned by the Parent. The guarantees are full and unconditional, as well as joint and several.

        Additionally, IMI guarantees the Subsidiary Notes, which were issued by Canada Company. Canada Company does not guarantee the Parent Notes. The other subsidiaries that do not guarantee the Parent Notes or the Subsidiary Notes are referred to below as the "Non-Guarantors."

	December 31, 2010
	Parent		Guarantors		Canada Company		Non- Guarantors		Eliminations			Consolidated
Assets
Current Assets:
Cash and Cash Equivalents	$	13,909	$	121,584	$	37,652	$	85,548	$	—		$	258,693
Restricted Cash		35,105		—		—		—		—			35,105
Accounts Receivable		—		327,842		41,562		154,922		—			524,326
Intercompany Receivable		1,344,802		—		9,281		—		(1,354,083	)		—
Assets of Discontinued Operations		—		184,790		—		28,418		—			213,208
Other Current Assets		2,601		128,341		10,878		39,310		—			181,130
Total Current Assets		1,396,417		762,557		99,373		308,198		(1,354,083	)		1,212,462
Property, Plant and Equipment, Net		—		1,522,073		208,020		738,151		—			2,468,244
Other Assets, Net:
Long-term Notes Receivable from Affiliates and Intercompany Receivable		1,381,546		1,000		—		—		(1,382,546	)		—
Investment in Subsidiaries		1,853,560		1,599,133		—		—		(3,452,693	)		—
Goodwill		—		1,525,960		203,345		550,256		—			2,279,561
Other		27,304		236,497		13,601		159,352		(114	)		436,640
Assets of Discontinued Operations		—		—		—		19,486		—			19,486
Total Other Assets, Net		3,262,410		3,362,590		216,946		729,094		(4,835,353	)		2,735,687
Total Assets	$	4,658,827	$	5,647,220	$	524,339	$	1,775,443	$	(6,189,436	)	$	6,416,393
Liabilities and Equity
Intercompany Payable	$	—	$	1,325,593	$	—	$	28,490	$	(1,354,083	)	$	—
Current Portion of Long-term Debt		56,407		24,393		2,606		12,675		—			96,081
Total Other Current Liabilities		92,339		405,299		42,614		176,896		—			717,148
Liabilities of Discontinued Operations		—		53,374		—		8,100		—			61,474
Long-term Debt, Net of Current Portion		2,559,780		67,504		191,010		93,832		—			2,912,126
Long-term Notes Payable to Affiliates and Intercompany Payable		1,000		1,381,546		—		—		(1,382,546	)		—
Other Long-term Liabilities		3,853		551,961		27,585		91,644		(114	)		674,929
Liabilities of Discontinued Operations		—		—		—		1,770		—			1,770
Commitments and Contingencies (See Note 10)
Total Iron Mountain Incorporated Stockholders' Equity		1,945,448		1,837,550		260,524		1,354,619		(3,452,693	)		1,945,448
Noncontrolling Interests		—		—		—		7,417		—			7,417
Total Equity		1,945,448		1,837,550		260,524		1,362,036		(3,452,693	)		1,952,865
Total Liabilities and Equity	$	4,658,827	$	5,647,220	$	524,339	$	1,775,443	$	(6,189,436	)	$	6,416,393

	December 31, 2011
	Parent		Guarantors		Canada Company		Non- Guarantors		Eliminations			Consolidated
Assets
Current Assets:
Cash and Cash Equivalents	$	3,428	$	10,750	$	68,907	$	96,760	$	—		$	179,845
Restricted Cash		35,110		—		—		—		—			35,110
Accounts Receivable		—		334,658		40,115		168,694		—			543,467
Intercompany Receivable		905,451		—		4,639		—		(910,090	)		—
Assets of Discontinued Operations		—		—		—		7,256		—			7,256
Other Current Assets		2,016		103,899		3,323		40,538		(1,004	)		148,772
Total Current Assets		946,005		449,307		116,984		313,248		(911,094	)		914,450
Property, Plant and Equipment, Net		1,490		1,480,785		200,755		724,053		—			2,407,083
Other Assets, Net:
Long-term Notes Receivable from Affiliates and Intercompany Receivable		928,182		1,000		2,961		15,010		(947,153	)		—
Investment in Subsidiaries		1,828,712		1,563,690		—		—		(3,392,402	)		—
Goodwill		—		1,529,359		196,989		527,920		—			2,254,268
Other		27,226		240,557		9,804		187,870					465,457
Total Other Assets, Net		2,784,120		3,334,606		209,754		730,800		(4,339,555	)		2,719,725
Total Assets	$	3,731,615	$	5,264,698	$	527,493	$	1,768,101	$	(5,250,649	)	$	6,041,258
Liabilities and Equity
Intercompany Payable	$	—	$	856,808	$	—	$	53,282	$	(910,090	)	$	—
Current Portion of Long-term Debt		658		46,967		2,658		23,037		—			73,320
Total Other Current Liabilities		100,921		453,648		31,407		187,421		(1,004	)		772,393
Liabilities of Discontinued Operations		—		—		—		3,317		—			3,317
Long-term Debt, Net of Current Portion		2,378,040		630,118		185,953		86,157		—			3,280,268
Long-term Notes Payable to Affiliates and Intercompany Payable		1,000		946,153		—		—		(947,153	)		—
Other Long-term Liabilities		5,308		528,897		31,418		92,081					657,704
Commitments and Contingencies (See Note 10)
Total Iron Mountain Incorporated Stockholders' Equity		1,245,688		1,802,107		276,057		1,314,238		(3,392,402	)		1,245,688
Noncontrolling Interests		—		—		—		8,568		—			8,568
Total Equity		1,245,688		1,802,107		276,057		1,322,806		(3,392,402	)		1,254,256
Total Liabilities and Equity	$	3,731,615	$	5,264,698	$	527,493	$	1,768,101	$	(5,250,649	)	$	6,041,258

	Year Ended December 31, 2009
	Parent			Guarantors			Canada Company			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage	$	—		$	1,094,221		$	93,244		$	346,327		$	—		$	1,533,792
Service		—			822,907			96,764			320,921			—			1,240,592
Total Revenues		—			1,917,128			190,008			667,248			—			2,774,384
Operating Expenses:
Cost of Sales (Excluding Depreciation and Amortization)		—			778,296			80,205			343,370			—			1,201,871
Selling, General and Administrative		92			523,698			32,127			194,017			—			749,934
Depreciation and Amortization		231			189,990			15,717			71,248			—			277,186
Loss (Gain) on Disposal/Write-down of Property, Plant and Equipment, Net		—			1,205			123			(1,160	)		—			168
Total Operating Expenses		323			1,493,189			128,172			607,475			—			2,229,159
Operating (Loss) Income		(323	)		423,939			61,836			59,773			—			545,225
Interest Expense (Income), Net		202,947			(41,320	)		42,066			8,852			—			212,545
Other Expense (Income), Net		44,642			(5,131	)		(2	)		(52,108	)		—			(12,599	)
(Loss) Income from Continuing Operations
Before Provision (Benefit) for Income Taxes		(247,912	)		470,390			19,772			103,029			—			345,279
Provision (Benefit) for Income Taxes		—			100,409			3,624			9,729			—			113,762
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax		(465,862	)		(102,601	)		—			—			568,463			—
Income (Loss) from Continuing Operations		217,950			472,582			16,148			93,300			(568,463	)		231,517
(Loss) Income from Discontinued Operations		—			(10,168	)		—			(1,970	)		—			(12,138	)
Net Income (Loss)		217,950			462,414			16,148			91,330			(568,463	)		219,379
Less: Net Income (Loss) Attributable to Noncontrolling Interests		—			—			—			1,429			—			1,429
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	217,950		$	462,414		$	16,148		$	89,901		$	(568,463	)	$	217,950

	Year Ended December 31, 2010
	Parent			Guarantors			Canada Company		Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage	$	—		$	1,113,674		$	110,768	$	374,276		$	—		$	1,598,718
Service		—			836,443			113,498		343,690			—			1,293,631
Total Revenues		—			1,950,117			224,266		717,966			—			2,892,349
Operating Expenses:
Cost of Sales (Excluding Depreciation and Amortization)		—			746,479			86,352		360,031			—			1,192,862
Selling, General and Administrative		68			516,664			36,587		219,492			—			772,811
Depreciation and Amortization		223			201,534			18,818		83,630			—			304,205
Intangible Impairments		—			84,611			—		1,298			—			85,909
(Gain) Loss on Disposal/Write-down of Property, Plant and Equipment, Net		—			(1,039	)		196		(10,144	)		—			(10,987	)
Total Operating Expenses		291			1,548,249			141,953		654,307			—			2,344,800
Operating (Loss) Income		(291	)		401,868			82,313		63,659			—			547,549
Interest Expense (Income), Net		194,689			(41,770	)		44,898		6,742			—			204,559
Other (Income) Expense, Net		(22,662	)		(1,882	)		18		33,294			—			8,768
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes		(172,318	)		445,520			37,397		23,623			—			334,222
Provision (Benefit) for Income Taxes		—			151,329			11,142		5,012			—			167,483
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax		(114,732	)		(34,014	)		—		—			148,746			—
(Loss) Income from Continuing Operations		(57,586	)		328,205			26,255		18,611			(148,746	)		166,739
(Loss) Income from Discontinued Operations		—			(215,479	)		—		(3,938	)		—			(219,417	)
Net (Loss) Income		(57,586	)		112,726			26,255		14,673			(148,746	)		(52,678	)
Less: Net Income (Loss) Attributable to Noncontrolling Interests		—			—			—		4,908			—			4,908
Net (Loss) Income Attributable to Iron Mountain Incorporated	$	(57,586	)	$	112,726		$	26,255	$	9,765		$	(148,746	)	$	(57,586	)

	Year Ended December 31, 2011
	Parent			Guarantors			Canada Company			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage	$	—		$	1,132,743		$	120,476		$	429,771		$	—		$	1,682,990
Service		—			833,652			115,973			382,088			—			1,331,713
Total Revenues		—			1,966,395			236,449			811,859			—			3,014,703
Operating Expenses:
Cost of Sales (Excluding Depreciation and Amortization)		2,000			760,300			91,249			391,651			—			1,245,200
Selling, General and Administrative		(1,885	)		548,848			38,965			248,663			—			834,591
Depreciation and Amortization		457			192,551			18,685			107,806			—			319,499
Intangible Impairments		—			—			—			46,500			—			46,500
(Gain) Loss on Disposal/Write-down of Property, Plant and Equipment, Net		—			(1,120	)		(420	)		(746	)		—			(2,286	)
Total Operating Expenses		572			1,500,579			148,479			793,874			—			2,443,504
Operating (Loss) Income		(572	)		465,816			87,970			17,985			—			571,199
Interest Expense (Income), Net		173,738			(24,055	)		44,559			11,014			—			205,256
Other (Income) Expense, Net		(3,944	)		7,561			315			9,111			—			13,043
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes		(170,366	)		482,310			43,096			(2,140	)		—			352,900
Provision (Benefit) for Income Taxes		—			86,139			20,681			(332	)		—			106,488
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax		(565,904	)		23,069			—			—			542,835			—
Income (Loss) from Continuing Operations		395,538			373,102			22,415			(1,808	)		(542,835	)		246,412
(Loss) Income from Discontinued Operations		—			(17,350	)		—			(30,089	)		—			(47,439	)
Gain (Loss) on Sale of Discontinued Operations		—			198,735			—			1,884			—			200,619
Net (Loss) Income		395,538			554,487			22,415			(30,013	)		(542,835	)		399,592
Less: Net Income (Loss) Attributable to Noncontrolling Interests		—			—			—			4,054			—			4,054
Net (Loss) Income Attributable to Iron Mountain Incorporated	$	395,538		$	554,487		$	22,415		$	(34,067	)	$	(542,835	)	$	395,538

	Year Ended December 31, 2009
	Parent			Guarantors			Canada Company			Non- Guarantors			Eliminations			Consolidated
Cash Flows from Operating Activities:
Cash Flows from Operating Activities-Continuing Operations	$	(186,314	)	$	602,593		$	38,154		$	132,137		$	—		$	586,570
Cash Flows from Operating Activities-Discontinued Operations		—			31,470			—			(1,129	)		—			30,341
Cash Flows from Operating Activities		(186,314	)		634,063			38,154			131,008			—			616,911
Cash Flows from Investing Activities:
Capital expenditures		—			(153,995	)		(22,042	)		(111,880	)		—			(287,917	)
Cash paid for acquisitions, net of cash acquired		—			(256	)		—			(1,262	)		—			(1,518	)
Intercompany loans to subsidiaries		284,604			17,807			—			—			(302,411	)		—
Investment in subsidiaries		(164,256	)		(164,256	)		—			—			328,512			—
Additions to customer relationship and acquisition costs		—			(6,711	)		(520	)		(3,510	)		—			(10,741	)
Investments in joint ventures		—			—			—			(3,114	)		—			(3,114	)
Proceeds from sales of property and equipment and other, net		—			3,717			45			829			—			4,591
Cash Flows from Investing Activities-Continuing Operations		120,348			(303,694	)		(22,517	)		(118,937	)		26,101			(298,699	)
Cash Flows from Investing Activities-Discontinued Operations		—			(20,261	)		—			(5,106	)		—			(25,367	)
Cash Flows from Investing Activities		120,348			(323,955	)		(22,517	)		(124,043	)		26,101			(324,066	)
Cash Flows from Financing Activities:
Repayment of revolving credit and term loan facilities and other debt		(54,150	)		(18,438	)		(192,097	)		(18,633	)		—			(283,318	)
Proceeds from revolving credit and term loan facilities and other debt		—			—			—			33,944			—			33,944
Early retirement of senior subordinated notes		(447,874	)		—			—			—			—			(447,874	)
Net proceeds from sale of senior subordinated notes		539,688			—			—			—			—			539,688
Debt financing (repayment to) and equity contribution from (distribution to) noncontrolling interests, net		—			—			—			1,064			—			1,064
Intercompany loans from parent		—			(283,974	)		5,751			(24,188	)		302,411			—
Equity contribution from parent		—			164,256			156,655			7,601			(328,512	)		—
Proceeds from exercise of stock options and employee stock purchase plan		24,233			—			—			—			—			24,233
Excess tax benefits from stock-based compensation		5,532			—			—			—			—			5,532
Payment of debt financing costs		(1,463	)		—			(37	)		(55	)		—			(1,555	)
Cash Flows from Financing Activities-Continuing Operations		65,966			(138,156	)		(29,728	)		(267	)		(26,101	)		(128,286	)
Cash Flows from Financing Activities-Discontinued Operations		—			—			—			(1,406	)		—			(1,406	)
Cash Flows from Financing Activities		65,966			(138,156	)		(29,728	)		(1,673	)		(26,101	)		(129,692	)
Effect of exchange rates on cash and cash equivalents		—			—			928			4,205			—			5,133
Increase (Decrease) in cash and cash equivalents		—			171,952			(13,163	)		9,497			—			168,286
Cash and cash equivalents, beginning of period		—			210,636			17,069			50,665			—			278,370
Cash and cash equivalents, end of period	$	—		$	382,588		$	3,906		$	60,162		$	—		$	446,656

	Year Ended December 31, 2010
	Parent			Guarantors			Canada Company			Non- Guarantors			Eliminations			Consolidated
Cash Flows from Operating Activities:
Cash Flows from Operating Activities-Continuing Operations	$	(180,588	)	$	578,159		$	56,113		$	149,545		$	—		$	603,229
Cash Flows from Operating Activities-Discontinued Operations		—			19,347			—			2,564			—			21,911
Cash Flows from Operating Activities		(180,588	)		597,506			56,113			152,109			—			625,140
Cash Flows from Investing Activities:
Capital expenditures		—			(137,937	)		(16,593	)		(104,319	)		—			(258,849	)
Cash paid for acquisitions, net of cash acquired		—			(1,970	)		(3,705	)		(8,166	)		—			(13,841	)
Intercompany loans to subsidiaries		577,316			34,465			—			—			(611,781	)		—
Investment in subsidiaries		(10,258	)		(35,124	)		—			—			45,382			—
Investment in restricted cash		(35,102	)		—			—			—			—			(35,102	)
Additions to customer relationship and acquisition costs		—			(9,332	)		(594	)		(3,276	)		—			(13,202	)
Proceeds from sales of property and equipment and other, net		—			5,867			93			16,576			—			22,536
Cash Flows from Investing Activities-Continuing Operations		531,956			(144,031	)		(20,799	)		(99,185	)		(566,399	)		(298,458	)
Cash Flows from Investing Activities-Discontinued Operations		(1,796	)		(129,972	)		—			(6,036	)		3,592			(134,212	)
Cash Flows from Investing Activities		530,160			(274,003	)		(20,799	)		(105,221	)		(562,807	)		(432,670	)
Cash Flows from Financing Activities:
Repayment of revolving credit and term loan facilities and other debt		(4,100	)		(24,226	)		(2,504	)		(71,054	)		—			(101,884	)
Proceeds from revolving credit and term loan facilities and other debt		—			—			—			53,567			—			53,567
Early retirement of senior subordinated notes		(202,584	)		—			—			—			—			(202,584	)
Debt financing (repayment to) and equity contribution from (distribution to) noncontrolling interests, net		—			—			—			169			—			169
Intercompany loans from parent		—			(572,335	)		122			(39,568	)		611,781			—
Equity contribution from parent		—			10,258			—			35,124			(45,382	)		—
Stock repurchases		(111,563	)		—			—			—			—			(111,563	)
Parent cash dividends		(37,893	)		—			—			—			—			(37,893	)
Proceeds from exercise of stock options and employee stock purchase plan		18,225			—			—			—			—			18,225
Excess tax benefits from stock-based compensation		2,252			—			—			—			—			2,252
Cash Flows from Financing Activities-Continuing Operations		(335,663	)		(586,303	)		(2,382	)		(21,762	)		566,399			(379,711	)
Cash Flows from Financing Activities-Discontinued Operations		—			1,796			—			273			(3,592	)		(1,523	)
Cash Flows from Financing Activities		(335,663	)		(584,507	)		(2,382	)		(21,489	)		562,807			(381,234	)
Effect of exchange rates on cash and cash equivalents		—			—			814			(13	)		—			801
Increase (Decrease) in cash and cash equivalents		13,909			(261,004	)		33,746			25,386			—			(187,963	)
Cash and cash equivalents, beginning of period		—			382,588			3,906			60,162			—			446,656
Cash and cash equivalents, end of period	$	13,909		$	121,584		$	37,652		$	85,548		$	—		$	258,693

	Year Ended December 31, 2011
	Parent			Guarantors			Canada Company			Non- Guarantors			Eliminations			Consolidated
Cash Flows from Operating Activities:
Cash Flows from Operating Activities-Continuing Operations	$	(162,478	)	$	698,033		$	45,232		$	82,727		$	—		$	663,514
Cash Flows from Operating Activities-Discontinued Operations		—			(47,166	)		—			(910	)		—			(48,076	)
Cash Flows from Operating Activities		(162,478	)		650,867			45,232			81,817			—			615,438
Cash Flows from Investing Activities:
Capital expenditures		—			(114,768	)		(14,155	)		(80,232	)		—			(209,155	)
Cash paid for acquisitions, net of cash acquired		—			(5,378	)		(58	)		(69,810	)		—			(75,246	)
Intercompany loans to subsidiaries		1,469,788			(83,385	)		—			—			(1,386,403	)		—
Investment in subsidiaries		(12,595	)		(12,595	)		—			—			25,190			—
Investment in restricted cash		(5	)		—			—			—			—			(5	)
Additions to customer relationship and acquisition costs		—			(15,700	)		(462	)		(5,541	)		—			(21,703	)
Investment in joint ventures		—			—			—			(335	)		—			(335	)
Proceeds from sales of property and equipment and other, net		—			363			66			3,802			—			4,231
Cash Flows from Investing Activities-Continuing Operations		1,457,188			(231,463	)		(14,609	)		(152,116	)		(1,361,213	)		(302,213	)
Cash Flows from Investing Activities-Discontinued Operations		—			371,365			—			9,356						380,721
Cash Flows from Investing Activities		1,457,188			139,902			(14,609	)		(142,760	)		(1,361,213	)		78,508
Cash Flows from Financing Activities:
Repayment of revolving credit and term loan facilities and other debt		(396,200	)		(1,458,628	)		(90,752	)		(71,594	)		—			(2,017,174	)
Proceeds from revolving credit and term loan facilities and other debt		—			2,014,500			89,838			66,641			—			2,170,979
Early retirement of senior subordinated notes		(231,255	)		—			—			—			—			(231,255	)
Net proceeds from sale of senior subordinated notes		394,000			—			—			—			—			394,000
Debt financing (repayment to) and equity contribution from (distribution to) noncontrolling interests, net		—			—			—			698			—			698
Intercompany loans from parent		—			(1,461,888	)		5,429			70,056			1,386,403			—
Equity contribution from parent		—			12,595			—			12,595			(25,190	)		—
Stock repurchases		(984,953	)		—			—			—			—			(984,953	)
Parent cash dividends		(172,616	)		—			—			—			—			(172,616	)
Proceeds from exercise of stock options and employee stock purchase plan		85,742			—			—			—			—			85,742
Excess tax benefits from stock-based compensation		919			—			—			—			—			919
Payment of debt financing costs		(828	)		(8,182	)		—			—			—			(9,010	)
Cash Flows from Financing Activities-Continuing Operations		(1,305,191	)		(901,603	)		4,515			78,396			1,361,213			(762,670	)
Cash Flows from Financing Activities-Discontinued Operations		—			—			—			(1,138	)					(1,138	)
Cash Flows from Financing Activities		(1,305,191	)		(901,603	)		4,515			77,258			1,361,213			(763,808	)
Effect of exchange rates on cash and cash equivalents		—			—			(3,883	)		(5,103	)		—			(8,986	)
Increase (Decrease) in cash and cash equivalents		(10,481	)		(110,834	)		31,255			11,212			—			(78,848	)
Cash and cash equivalents, beginning of period		13,909			121,584			37,652			85,548			—			258,693
Cash and cash equivalents, end of period	$	3,428		$	10,750		$	68,907		$	96,760		$	—		$	179,845

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Income Taxes (Details 2) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Tax Carryforwards
Net operating loss carryforwards	$ 58,113	$ 52,099
Roll forward of valuation allowance:
Balance at the beginning of the period	72,229	33,926	36,392
Charged (Credited) to Expense	9,844	39,545	1,416
Other Additions			3,158
Other Deductions	(9,834)	(1,242)	(7,040)
Balance at the end of the period	72,239	72,229	33,926
Tax benefits for awards issued and incremental tax benefits in excess of compensation expense	919	2,252	5,532
Federal
Tax Carryforwards
Net operating loss carryforwards, before tax effect	28,183
Net operating loss carryforwards	9,864
State
Tax Carryforwards
Net operating loss carryforwards	7,915
Operating loss carryforwards valuation allowance (as a percent)	99.00%
Foreign
Tax Carryforwards
Net operating loss carryforwards	40,334
Operating loss carryforwards valuation allowance (as a percent)	69.00%
Foreign tax credits	$ 56,599
Tax credit carryforward valuation allowance (as a percent)	65.00%

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Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2011

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

3. Derivative Instruments and Hedging Activities

        We have entered into a number of separate forward contracts to hedge our exposures in British pounds sterling and Australian dollars. As of December 31, 2011, we had an outstanding forward contract to purchase $195,610 U.S. dollars and sell 125,000 British pounds sterling to hedge our intercompany exposures with IME. In the fourth quarter of 2010, we entered into a forward contract to hedge our exposures in Australian dollars. As of December 31, 2011, we had an outstanding forward contract to purchase $75,065 U.S. dollars and sell 73,000 Australian dollars to hedge our intercompany exposures with our Australian subsidiary. At the maturity of the forward contracts, we may enter into new forward contracts to hedge movements in the underlying currencies. At the time of settlement, we either pay or receive the net settlement amount from the forward contract and recognize this amount in other (income) expense, net in the accompanying statement of operations as a realized foreign exchange gain or loss. At the end of each month, we mark the outstanding forward contracts to market and record an unrealized foreign exchange gain or loss for the mark-to-market valuation. We have not designated these forward contracts as hedges. During the years ended December 31, 2009, 2010 and 2011, there was $2,392 in net cash disbursements, $2,030 in net cash receipts and $1,092 in net cash disbursements, respectively, included in cash from operating activities from continuing operations related to settlements associated with these foreign currency forward contracts. The following table provides the fair value of our derivative instruments as of December 31, 2010 and 2011 and their gains and losses for the years ended December 31, 2009, 2010 and 2011:

	Asset Derivatives
	December 31,
	2010			2011
Derivatives Not Designated as Hedging Instruments	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Foreign exchange contracts	Current assets	$	2,500	Current assets	$	2,803
Total		$	2,500		$	2,803

	Liability Derivatives
	December 31,
	2010			2011
Derivatives Not Designated as Hedging Instruments	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Foreign exchange contracts	Current liabilities	$	2,440	Current liabilities	$	435
Total		$	2,440		$	435

		Amount of (Gain) Loss Recognized in Income on Derivatives
		December 31,
	Location of (Gain) Loss Recognized in Income on Derivative
Derivatives Not Designated as Hedging Instruments		2009		2010		2011
Foreign exchange contracts	Other expense (income), net	$	11,952	$	2,025	$	(1,209	)
Total		$	11,952	$	2,025	$	(1,209	)

        We have designated a portion of our 6³/4% Euro Senior Subordinated Notes due 2018 issued by IMI (the "6³/4% Notes") as a hedge of net investment of certain of our Euro denominated subsidiaries. For the years ended December 31, 2009, 2010 and 2011, we designated on average 95,500, 74,750 and 86,750 Euros, respectively, of the 6³/4% Notes as a hedge of net investment of certain of our Euro denominated subsidiaries. As a result, we recorded foreign exchange gains of $1,863 ($989, net of tax) related to the change in fair value of such debt due to currency translation adjustments which is a component of accumulated other comprehensive items, net included in stockholders' equity for the year ended December 31, 2009. We recorded foreign exchange gains of $7,392 ($4,620, net of tax) related to the change in fair value of such debt due to currency translation adjustments which is a component of accumulated other comprehensive items, net included in stockholders' equity for the year ended December 31, 2010. We recorded foreign exchange gains of $8,634 ($5,411, net of tax) related to the change in fair value of such debt due to currency translation adjustments which is a component of accumulated other comprehensive items, net included in stockholders' equity for the year ended December 31, 2011. As of December 31, 2011, net gains of $13,390 are recorded in accumulated other comprehensive items, net associated with this net investment hedge.

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Debt

12 Months Ended

Dec. 31, 2011

Debt

Debt

4. Debt

        Long-term debt consists of the following:

	December 31, 2010					December 31, 2011
	Carrying Amount			Fair Value		Carrying Amount			Fair Value
IMI Revolving Credit Facility(1)	$	—		$	—	$	—		$	—
IMI Term Loan Facility(1)		396,200			396,200		—			—
New Revolving Credit Facility(1)		—			—		96,000			96,000
New Term Loan Facility(1)		—			—		487,500			487,500
71/4% GBP Senior Subordinated Notes due 2014 (the "71/4% Notes")(2)(3)		232,530			234,855		233,115			233,115
73/4% Senior Subordinated Notes due 2015 (the "73/4% Notes due 2015")(2)(3)		233,234			231,683		—			—
65/8% Senior Subordinated Notes due 2016 (the "65/8% Notes")(2)(3)		317,529			321,592		318,025			320,400
71/2% CAD Senior Subordinated Notes due 2017 (the "Subsidiary Notes")(2)(4)		175,306			182,099		171,273			174,698
83/4% Senior Subordinated Notes due 2018 (the "83/4% Notes")(2)(3)		200,000			209,625		200,000			209,000
8% Senior Subordinated Notes due 2018 (the "8% Notes")(2)(3)		49,777			53,756		49,806			47,607
63/4% Euro Senior Subordinated Notes due 2018 (the "63/4% Notes")(2)(3)		338,129			337,631		328,750			312,352
73/4% Senior Subordinated Notes due 2019 (the "73/4% Notes due 2019")(2)(3)		—			—		400,000			422,750
8% Senior Subordinated Notes due 2020 (the "8% Notes due 2020")(2)(3)		300,000			316,313		300,000			313,313
83/8% Senior Subordinated Notes due 2021 (the "83/8% Notes")(2)(3)		548,174			589,188		548,346			586,438
Real Estate Mortgages, Capital Leases and Other(5)		217,328			217,328		220,773			220,773
Total Long-term Debt		3,008,207					3,353,588
Less Current Portion		(96,081	)(6)				(73,320	)
Long-term Debt, Net of Current Portion	$	2,912,126				$	3,280,268

(1)

The capital stock or other equity interests of most of our U.S. subsidiaries, and up to 66% of the capital stock or other equity interests of our first-tier foreign subsidiaries, are pledged to secure these debt instruments, together with all intercompany obligations of foreign subsidiaries owed to us or to one of our U.S. subsidiary guarantors. The fair value of this long-term debt approximates the carrying value (as borrowings under these debt instruments are based on current variable market interest rates as of December 31, 2010 and 2011, respectively).

(2)

The fair values of these debt instruments are based on quoted market prices for these notes on December 31, 2010 and 2011, respectively.

(3)

Collectively, the "Parent Notes". IMI is the direct obligor on the Parent Notes, which are fully and unconditionally guaranteed, on a senior subordinated basis, by substantially all of its direct and indirect wholly owned U.S. subsidiaries (the "Guarantors"). These guarantees are joint and several obligations of the Guarantors. Iron Mountain Canada Corporation ("Canada Company") and the remainder of our subsidiaries do not guarantee the Parent Notes.

(4)

Canada Company is the direct obligor on the Subsidiary Notes, which are fully and unconditionally guaranteed, on a senior subordinated basis, by IMI and the Guarantors. These guarantees are joint and several obligations of IMI and the Guarantors.

(5)

Includes (a) real estate mortgages of $7,492 and $5,232 as of December 31, 2010 and 2011, respectively, which bear interest at rates ranging from 2.0% to 5.5% and are payable in various installments through 2021, (b) capital lease obligations of $200,996 and $207,300 as of December 31, 2010 and 2011, respectively, which bear a weighted average interest rate of 5.8% as of December 31, 2011 and (c) other various notes and other obligations, which were assumed by us as a result of certain acquisitions, of $8,840 and $8,241 as of December 31, 2010 and 2011, respectively, and bear a weighted average interest rate of 8.7% as of December 31, 2011. We believe the fair value of this debt approximates its carrying value.

(6)

Includes $51,694 associated with the 7³/4% Notes which we fully redeemed in January 2011. This amount represents the portion of the redemption funded with cash on-hand. The remaining funds were drawn under the revolving credit facility.

• a.

  Revolving Credit Facility and Term Loans

        On June 27, 2011, we entered into a new credit agreement to replace the IMI revolving credit facility and the IMI term loan facility, each entered into on April 16, 2007. The new credit agreement consists of (i) revolving credit facilities under which we can borrow, subject to certain limitations as defined in the new credit agreement, up to an aggregate amount of $725,000 (including Canadian dollars, British pounds sterling and Euros, among other currencies) (the "New Revolving Credit Facility") and (ii) a $500,000 term loan facility (the "New Term Loan Facility," and collectively with the New Revolving Credit Facility, the "New Credit Agreement"). We have the right to increase the aggregate amount available to be borrowed under the New Credit Agreement up to a maximum of $1,800,000. The New Revolving Credit Facility is supported by a group of 19 banks. IMI, Iron Mountain Information Management, Inc. ("IMIM"), Canada Company, IME, Iron Mountain Australia Pty Ltd., Iron Mountain Switzerland Gmbh and any other subsidiary of IMIM designated by IMIM (the "Other Subsidiaries") may, with the consent of the administrative agent, as defined in the New Credit Agreement, borrow under certain of the following tranches of the New Revolving Credit Facility: (a) tranche one in the amount of $400,000 is available to IMI and IMIM in U.S. dollars, British pounds sterling and Euros, (b) tranche two in the amount of $150,000 is available to IMI or IMIM in either U.S. dollars or Canadian dollars and available to Canada Company in Canadian dollars and (c) tranche three in the amount of $175,000 is available to IMI or IMIM and the Other Subsidiaries in U.S. dollars, Canadian dollars, British pounds sterling, Euros and Australian dollars, among others. The New Revolving Credit Facility terminates on June 27, 2016, at which point all revolving credit loans under such facility become due. With respect to the New Term Loan Facility, loan payments are required through maturity on June 27, 2016 in equal quarterly installments of the aggregate annual amounts based upon the following percentage of the original principal amount in the table below (except that each of the first three quarterly installments in the fifth year shall be 10% of the original principal amount and the final quarterly installment in the fifth year shall be 35% of the original principal):

Year Ending	Percentage
June 30, 2012		5	%
June 30, 2013		5	%
June 30, 2014		10	%
June 30, 2015		15	%
June 27, 2016		65	%

        The New Term Loan Facility may be prepaid without penalty or premium, in whole or in part, at any time. IMI and IMIM guarantee the obligations of each of the subsidiary borrowers. The capital stock or other equity interests of most of the U.S. subsidiaries, and up to 66% of the capital stock or other equity interests of our first-tier foreign subsidiaries, are pledged to secure the New Credit Agreement, together with all intercompany obligations of foreign subsidiaries owed to us or to one of our U.S. subsidiary guarantors. The interest rate on borrowings under the New Credit Agreement varies depending on our choice of interest rate and currency options, plus an applicable margin, which varies based on certain financial ratios. Additionally, the New Credit Agreement requires the payment of a commitment fee on the unused portion of the revolving credit facility, which fee ranges from between 0.3% to 0.5% based on certain financial ratios, as well as fees associated with any outstanding letters of credit. Proceeds from the New Credit Agreement are for general corporate purposes and were used to repay the previous revolving credit and term loan facilities. We recorded a charge of $1,843 to other expense (income), net in the second quarter of 2011 related to the early retirement of the previous revolving credit and term loan facilities, representing a write-off of deferred financings costs. As of December 31, 2011, we had $96,000 of outstanding borrowings under the New Revolving Credit Facility, all of which was denominated in U.S. dollars; we also had various outstanding letters of credit totaling $5,833. The remaining availability on December 31, 2011, based on IMI's leverage ratio, which is calculated based on the last 12 months' earnings before interest, taxes, depreciation and amortization ("EBITDA"), and other adjustments as defined in the New Credit Agreement and current external debt, under the New Revolving Credit Facility was $623,167. The interest rate in effect under the New Revolving Credit Facility and New Term Loan Facility was 4.0% and 2.3%, respectively, as of December 31, 2011. For the years ended December 31, 2009, 2010 and 2011, we recorded commitment fees of $1,953, $2,348 and $2,038, respectively, based on the unused balances under our revolving credit facilities.

        The New 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 New Credit Agreement, our indentures or other agreements governing our indebtedness. The New Credit Agreement, as well as our indentures, use EBITDA-based calculations as primary measures of financial performance, including leverage and fixed charge coverage ratios. IMI's revolving credit and term leverage ratio was 2.9 and 3.4 as of December 31, 2010 and 2011, respectively, compared to a maximum allowable ratio of 5.5. Similarly, our bond leverage ratio, per the indentures, was 3.4 and 3.9 as of December 31, 2010 and 2011, respectively, compared to a maximum allowable ratio of 6.5. IMI's revolving credit and term loan fixed charge coverage ratio was 1.5 as of December 31, 2011, compared to a minimum allowable ratio of 1.2. Noncompliance with these leverage and fixed charge coverage ratios would have a material adverse effect on our financial condition and liquidity. In the fourth quarter of 2007, we designated as Excluded Restricted Subsidiaries (as defined in the indentures), certain of our subsidiaries that own our assets and conduct our operations in the United Kingdom. As a result of such designation, these subsidiaries are now subject to substantially all of the covenants of the indentures, except that they are not required to provide a guarantee, and the EBITDA and debt of these subsidiaries is included for purposes of calculating the leverage ratio.

• b.

  Notes Issued under Indentures

        As of December 31, 2011, we had nine series of senior subordinated notes issued under various indentures, eight are direct obligations of the parent company, IMI; one (the Subsidiary Notes) is a direct obligation of Canada Company; and all are subordinated to debt outstanding under the Credit Agreement:

• •

  150,000 British pounds sterling principal amount of notes maturing on April 15, 2014 and bearing interest at a rate of 7¹/4% per annum, payable semi-annually in arrears on April 15 and October 15;

  •

  $320,000 principal amount of notes maturing on January 1, 2016 and bearing interest at a rate of 6⁵/8% per annum, payable semi-annually in arrears on January 1 and July 1;

  •

  175,000 CAD principal amount of notes maturing on March 15, 2017 and bearing interest at a rate of 7¹/2% per annum, payable semi-annually in arrears on March 15 and September 15 (the "Subsidiary Notes");

  •

  $200,000 principal amount of notes maturing on July 15, 2018 and bearing interest at a rate of 8³/4% per annum, payable semi-annually in arrears on January 15 and July 15;

  •

  $50,000 principal amount of notes maturing on October 15, 2018 and bearing interest at a rate of 8% per annum, payable semi-annually in arrears on April 15 and October 15;

  •

  255,000 Euro principal amount of notes maturing on October 15, 2018 and bearing interest at a rate of 6³/4% per annum, payable semi-annually in arrears on April 15 and October 15;

  •

  $400,000 principal amount of notes maturing on October 1, 2019 and bearing interest at a rate of 7³/4% per annum, payable semi-annually in arrears on April 1 and October 1;

  •

  $300,000 principal amount of notes maturing on June 15, 2020 and bearing interest at a rate of 8% per annum, payable semi-annually in arrears on June 15 and December 15; and

  •

  $550,000 principal amount of notes maturing on August 15, 2021 and bearing interest at a rate of 8³/8% per annum, payable semi-annually in arrears on February 15 and August 15.

        The Parent Notes and the Subsidiary Notes are fully and unconditionally guaranteed, on a senior subordinated basis, by substantially all of our direct and indirect wholly owned U.S. subsidiaries (the "Guarantors"). These guarantees are joint and several obligations of the Guarantors. The remainder of our subsidiaries do not guarantee the senior subordinated notes. Additionally, IMI guarantees the Subsidiary Notes. Canada Company does not guarantee the Parent Notes.

        In September 2011, we completed an underwritten public offering of $400,000 in aggregate principal amount of our 7³/4% Senior Subordinated Notes due 2019, which were issued at 100% of par. Our net proceeds of $394,000 after paying the underwriters' discounts and commissions, were used for general corporate purposes, including funding a portion of the stockholder payout commitments we have made.

        We recorded a charge to other expense (income), net of $3,031 in the third quarter of 2009 related to the early extinguishment of our 8⁵/8% Senior Subordinated Notes due 2013 (the "8⁵/8% Notes"), which consists of deferred financing costs and original issue premiums and discounts related to the 8⁵/8% Notes. In September 2010, we redeemed $200,000 of the $431,255 aggregate principal amount outstanding of our 7³/4% Notes due 2015 at a redemption price of $1,012.92 for each one thousand dollars of principal amount of notes redeemed, plus accrued and unpaid interest. We recorded a charge to other expense (income), net of $1,792 in the third quarter of 2010 related to the early extinguishment of our 7³/4% Notes due 2015 that were redeemed. This charge consists of the call premium and deferred financing costs, net of original issue premiums related to our 7³/4% Notes due 2015 that were redeemed. In January 2011, we redeemed the remaining $231,255 aggregate principal amount outstanding of our 7³/4% Notes due 2015 at a redemption price of one thousand dollars for each one thousand dollars of principal amount of notes redeemed, plus accrued and unpaid interest. We recorded a gain to other expense (income), net of $850 in the first quarter of 2011 related to the early extinguishment of our 7³/4% Notes due 2015 that were redeemed. This gain consists of original issue premiums, net of deferred financing costs related to our 7³/4% Notes due 2015 that were redeemed.

        Each of the indentures for the notes provides that we may redeem the outstanding notes, in whole or in part, upon satisfaction of certain terms and conditions. In any redemption, we are also required to pay all accrued but unpaid interest on the outstanding notes.

        The following table presents the various redemption dates and prices of the senior subordinated notes. The redemption dates reflect the date at or after which the notes may be redeemed at our option at a premium redemption price. After these dates, the notes may be redeemed at 100% of face value:

Redemption Date	71/4% Notes April 15,			65/8% Notes July 1,			71/2% Notes March 15,			83/4% Notes July 15,			8% Notes October 15,			63/4% Notes October 15,			73/4% Notes October 1,			8% Notes June 15,			83/8% Notes August 15,
2011		101.208	%		100.000	%		—			104.375	%		104.000	%		103.375	%		—			—			—
2012		100.000	%		100.000	%		103.750	%		102.917	%		102.667	%		102.250	%		—			—			—
2013		100.000	%		100.000	%		102.500	%		101.458	%		101.333	%		101.125	%		—			104.000	%		—
2014		100.000	%		100.000	%		101.250	%		100.000	%		100.000	%		100.000	%		—			102.667	%		104.188	%
2015		—			100.000	%		100.000	%		100.000	%		100.000	%		100.000	%		103.875	%		101.333	%		102.792	%
2016		—			100.000	%		100.000	%		100.000	%		100.000	%		100.000	%		101.938	%		100.000	%		101.396	%
2017		—			—			100.000	%		100.000	%		100.000	%		100.000	%		100.000	%		100.000	%		100.000	%
2018		—			—			—			100.000	%		100.000	%		100.000	%		100.000	%		100.000	%		100.000	%

        Prior to June 15, 2013, the 8% Notes due 2020 are redeemable at our option, in whole or in part, at a specified make-whole price.

        Prior to August 15, 2014, the 8³/8% Notes are redeemable at our option, in whole or in part, at a specified make-whole price.

        Prior to October 1, 2015, the 7³/4% Notes due 2019 are redeemable at our option, in whole or in part, at a specified make-whole price.

        Each of the indentures for the notes provides that we must repurchase, at the option of the holders, the notes at 101% of their principal amount, plus accrued and unpaid interest, upon the occurrence of a "Change of Control," which is defined in each respective indenture. Except for required repurchases upon the occurrence of a Change of Control or in the event of certain asset sales, each as described in the respective indenture, we are not required to make sinking fund or redemption payments with respect to any of the notes.

        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 our indentures or other agreements governing our indebtedness.

        Maturities of long-term debt are as follows:

Year	Amount
2012	$	73,320
2013		79,195
2014		321,177
2015		154,030
2016		652,318
Thereafter		2,079,155
		3,359,195
Net Premiums (Discounts)		(5,607	)
Total Long-term Debt (including current portion)	$	3,353,588

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Acquisitions

12 Months Ended

Dec. 31, 2011

Acquisitions

Acquisitions

6. Acquisitions

        We account for acquisitions using the acquisition method of accounting, and, accordingly, the results of operations for each acquisition have been included in our consolidated results from their respective acquisition dates. Cash consideration for our various acquisitions was primarily provided through borrowings under our credit facilities and cash equivalents on-hand. We completed no acquisitions during 2009. Included in cash paid for acquisitions in the consolidated statement of cash flows for the year ended December 31, 2009 is contingent and other payments of $1,518 related to acquisitions made in prior years. The unaudited pro forma results of operations for the current and prior periods are not presented due to the insignificant impact of the 2010 and 2011 acquisitions on our consolidated results of operations. Noteworthy acquisitions are as follows:

        In May 2010 we acquired the remaining 87% interest of our joint venture in Greece (Safe doc S.A.) in a stock transaction for a cash purchase price of approximately $4,700, and we now control 100% of our Greek operations, which provide storage and records management services. The carrying value of the 13% interest that we had previously acquired and accounted for under the equity method of accounting amounted to approximately $416 and the fair value of such interest on the date of acquisition was approximately $473 and resulted in a gain being recorded on the date of the transaction to other (income) expense, net of approximately $57 during the second quarter of 2010.

        In January 2011, we acquired the remaining 80% interest of our joint venture in Poland (Iron Mountain Poland Holdings Limited) in a stock transaction for an estimated purchase price of approximately $80,000, including an initial cash purchase price of $35,000. As a result, we now own 100% of our Polish operations, which provide storage and records management services. The terms of the purchase and sale agreement also required a second payment based upon the audited financial results of the joint venture. This payment of $42,259 was based upon a formula defined in the purchase and sale agreement and was paid in the second quarter of 2011. Additionally, the purchase and sale agreement provides for an escrow hold back of $400 and the payment of up to a maximum of $2,500 of contingent consideration to be paid in July 2012 based upon the satisfaction of certain performance criteria. The carrying value of the 20% interest that we previously held and accounted for under the equity method of accounting amounted to approximately $5,774, and the fair value of such interest on the date of the acquisition of the additional 80% interest was approximately $11,694 and resulted in a gain being recorded to other (income) expense, net of approximately $5,920 in the year ended December 31, 2011. The fair value of our previously held equity interest was derived by reducing the total estimated consideration for the 80% equity interest purchased by 40%, which represents management's estimate of the control premium paid, in order to derive the fair value of $11,694 for the 20% noncontrolling equity interest which we previously held. We determined that a 40% control premium was appropriate after considering the size and location of the business acquired, the potential future profits expected to be generated by the Polish entity and publicly available market data. One of the members of our board of directors and several of his family members hold an indirect equity interest in one of the stockholders that received proceeds in connection with this transaction. As a result of this equity interest, such board member, together with several of his family members, received approximately 24% of the purchase price that we paid in connection with this transaction and will receive the same percentage of any future contingent consideration.

        A summary of the cumulative consideration paid and the allocation of the purchase price of all of the acquisitions in each respective year is as follows:

	2010			2011
Cash Paid (gross of cash acquired)	$	10,542	(1)	$	80,439	(1)
Contingent Consideration		—			2,900
Fair Value of Previously Held Equity Interest		473			11,694
Total Consideration		11,015			95,033
Fair Value of Identifiable Assets Acquired:
Cash, Accounts Receivable, Prepaid Expenses,
Deferred Income Taxes and Other		1,615			7,918
Property, Plant and Equipment(2)		2,711			6,002
Customer Relationship Assets(3)		5,189			59,100
Other Assets		—			653
Liabilities Assumed(4)		(3,840	)		(15,245	)
Noncontrolling Interests		(390	)		—
Total Fair Value of Identifiable Net Assets Acquired		5,285			58,428
Recorded Goodwill	$	5,730		$	36,605

(1)

Included in cash paid for acquisitions in the consolidated statements of cash flows for the years ended December 31, 2010 and 2011 are contingent and other payments of $3,428 and $132, respectively, related to acquisitions made in previous years.

(2)

Consists primarily of racking, leasehold improvements and computer hardware and software.

(3)

The weighted average lives of customer relationship assets associated with acquisitions in 2010 and 2011 was 10 years and 20 years, respectively.

(4)

Consists primarily of accounts payable, accrued expenses, notes payable, deferred revenue and deferred income taxes.

        In connection with our acquisition in India in May 2006, we entered into a stockholder agreement. The agreement contains a put provision that would allow the noncontrolling interest holder to sell the remaining 49.9% equity interest to us beginning on the third anniversary of this agreement for the greater of fair market value or approximately 84,835 Rupees (approximately $1,563).

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Segment Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Segment Reporting Information
Total Revenues	$ 741,837	$ 768,306	$ 758,551	$ 746,009	$ 729,168	$ 725,649	$ 718,536	$ 718,996	$ 3,014,703	$ 2,892,349	$ 2,774,384
Depreciation and Amortization									319,499	304,205	277,186
Depreciation									290,638	278,760	253,061
Amortization									28,861	25,445	24,125
Adjusted OIBDA									934,912	926,676	822,579
Total Assets	6,041,258				6,416,393				6,041,258	6,416,393	6,851,157
Expenditures for Segment Assets									306,104	285,892	300,176
Capital Expenditures									209,155	258,849	287,917
Cash Paid for Acquisitions, Net of Cash Acquired									75,246	13,841	1,518
Additions to Customer Relationship and Acquisition Costs									21,703	13,202	10,741
North American Business
Segment Reporting Information
Total Revenues									2,229,143	2,193,464	2,124,964
Depreciation and Amortization									180,763	185,483	174,096
Depreciation									168,549	172,713	162,400
Amortization									12,214	12,770	11,696
Adjusted OIBDA									961,973	969,505	866,356
Total Assets	4,194,850				4,370,465				4,194,850	4,370,465	4,695,013
Expenditures for Segment Assets									139,079	135,825	160,784
Capital Expenditures									117,338	120,162	153,273
Cash Paid for Acquisitions, Net of Cash Acquired									5,436	5,675	256
Additions to Customer Relationship and Acquisition Costs									16,305	9,988	7,255
International Business
Segment Reporting Information
Total Revenues									785,560	698,885	649,420
Depreciation and Amortization									104,815	81,932	69,768
Depreciation									88,432	69,480	57,570
Amortization									16,383	12,452	12,198
Adjusted OIBDA									164,212	130,969	120,482
Total Assets	1,646,701				1,641,251				1,646,701	1,641,251	1,667,266
Expenditures for Segment Assets									152,064	115,496	110,624
Capital Expenditures									76,856	104,116	105,876
Cash Paid for Acquisitions, Net of Cash Acquired									69,810	8,166	1,262
Additions to Customer Relationship and Acquisition Costs									5,398	3,214	3,486
Corporate
Segment Reporting Information
Depreciation and Amortization									33,921	36,790	33,322
Depreciation									33,657	36,567	33,091
Amortization									264	223	231
Adjusted OIBDA									(191,273)	(173,798)	(164,259)
Total Assets	199,707				404,677				199,707	404,677	488,878
Expenditures for Segment Assets									14,961	34,571	28,768
Capital Expenditures									$ 14,961	$ 34,571	$ 28,768

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Segment Information (Details 3) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Segment Reporting Information
Total Revenues	$ 741,837	$ 768,306	$ 758,551	$ 746,009	$ 729,168	$ 725,649	$ 718,536	$ 718,996	$ 3,014,703	$ 2,892,349	$ 2,774,384
Records Management
Segment Reporting Information
Total Revenues									2,183,154	2,081,492	2,040,497
Data Protection and Recovery
Segment Reporting Information
Total Revenues									522,632	531,580	483,909
Information Destruction
Segment Reporting Information
Total Revenues									$ 308,917	$ 279,277	$ 249,978

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Quarterly Results of Operations (Unaudited) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Quarterly Results of Operations (Unaudited)
Total Revenues	$ 741,837	$ 768,306	$ 758,551	$ 746,009	$ 729,168	$ 725,649	$ 718,536	$ 718,996	$ 3,014,703	$ 2,892,349	$ 2,774,384
Operating income (loss)	149,463	135,199	148,937	137,600	146,243	105,686	157,278	138,342	571,199	547,549	545,225
Income (Loss) from Continuing Operations	47,382	50,394	67,460	81,176	57,930	27,202	49,252	32,355	246,412	166,739	231,517
Total Income (Loss) from discontinued operations	(13,381)	(12,469)	185,587	(6,557)	(24,674)	(178,930)	(8,435)	(7,378)	153,180	(219,417)	(12,138)
Net income (loss)	34,001	37,925	253,047	74,619	33,256	(151,728)	40,817	24,977	399,592	(52,678)	219,379
Net income (loss) attributable to Iron Mountain Incorporated	32,056	37,338	252,684	73,460	32,040	(154,687)	40,357	24,704	395,538	(57,586)	217,950
Earnings (Losses) per Share-Basic:
Income (Loss) per share from continuing operations (in dollars per share)	$ 0.26	$ 0.26	$ 0.33	$ 0.41	$ 0.29	$ 0.14	$ 0.24	$ 0.16	$ 1.27	$ 0.83	$ 1.14
Total income (loss) per share from discontinued operations (in dollars per share)	$ (0.07)	$ (0.06)	$ 0.92	$ (0.03)	$ (0.12)	$ (0.89)	$ (0.04)	$ (0.04)	$ 0.79	$ (1.09)	$ (0.06)
Net Income (Loss) Attributable to Iron Mountain Incorporated (in dollars per share)	$ 0.18	$ 0.19	$ 1.25	$ 0.37	$ 0.16	$ (0.77)	$ 0.20	$ 0.12	$ 2.03	$ (0.29)	$ 1.07
Earnings (Losses) per Share-Diluted:
Income (Loss) per share from continuing operations (in dollars per share)	$ 0.26	$ 0.26	$ 0.33	$ 0.40	$ 0.29	$ 0.14	$ 0.24	$ 0.16	$ 1.26	$ 0.83	$ 1.13
Total income (loss) per share from discontinued operations (in dollars per share)	$ (0.07)	$ (0.06)	$ 0.91	$ (0.03)	$ (0.12)	$ (0.89)	$ (0.04)	$ (0.04)	$ 0.78	$ (1.09)	$ (0.06)
Net Income (Loss) Attributable to Iron Mountain Incorporated (in dollars per share)	$ 0.18	$ 0.19	$ 1.24	$ 0.37	$ 0.16	$ (0.77)	$ 0.20	$ 0.12	$ 2.02	$ (0.29)	$ 1.07
Goodwill impairment charge related to discontinued operations					28,785	255,000
Goodwill impairment charge related to discontinued operations, net of tax					$ 28,300	$ 249,000
The 7 3/4% notes due 2015
Long-term Debt Information
Stated Interest Rate (as a percent)	7.75%				7.75%	7.75%			7.75%	7.75%

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies

Schedule of future minimum lease payments for leases

	Operating Lease Payment(1)		Sublease Income		Capital Leases
2012	$	219,951	$	2,317	$	51,490
2013		209,417		1,932		48,787
2014		197,258		1,648		31,837
2015		187,507		1,629		22,655
2016		180,753		1,145		17,450
Thereafter		1,714,261		1,934		138,661
Total minimum lease payments	$	2,709,147	$	10,605		310,880
Less amounts representing interest						(103,580	)
Present value of capital lease obligations					$	207,300

(1)

Includes $2,593, $1,975, $1,758, $1,752, $1,692 and $8,232 in 2012, 2013, 2014, 2015, 2016 and thereafter, respectively, related to our Italian Business (a total of $18,002).

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Debt (Details)	12 Months Ended								3 Months Ended					12 Months Ended																			1 Months Ended		3 Months Ended																																																									1 Months Ended																								3 Months Ended			12 Months Ended
	Dec. 31, 2011 USD ($) series	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)	Dec. 31, 2011 Parent USD ($) series	Dec. 31, 2009 Parent USD ($)	Dec. 31, 2010 Parent USD ($)	Dec. 31, 2011 Canada Company USD ($) series	Dec. 31, 2010 Canada Company USD ($)	Jun. 30, 2011 IMI Revolving Credit Facility and Term Loan Facility USD ($)	Dec. 31, 2010 IMI Term Loan Facility USD ($)	Dec. 31, 2011 New Credit Agreement USD ($)	Jun. 27, 2011 New Credit Agreement USD ($)	Dec. 31, 2010 New Credit Agreement	Dec. 31, 2011 New Credit Agreement Maximum	Dec. 31, 2011 New Credit Agreement Minimum	Dec. 31, 2011 New Revolving Credit Facility USD ($)	Dec. 31, 2010 New Revolving Credit Facility USD ($)	Dec. 31, 2009 New Revolving Credit Facility USD ($)	Jun. 27, 2011 New Revolving Credit Facility USD ($) bank	Jun. 27, 2011 New Revolving Credit Facility, Tranche One USD ($)	Jun. 27, 2011 New Revolving Credit Facility, Tranche Two USD ($)	Jun. 27, 2011 New Revolving Credit Facility, Tranche Three USD ($)	Dec. 31, 2011 New Term Loan Facility USD ($)	Jun. 27, 2011 New Term Loan Facility USD ($)	Dec. 31, 2011 The 7 1/4% notes USD ($)	Dec. 31, 2010 The 7 1/4% notes USD ($)	Dec. 31, 2009 The 7 1/4% notes	Dec. 31, 2011 The 7 1/4% notes Redemption date 2011	Dec. 31, 2011 The 7 1/4% notes Redemption date 2012	Dec. 31, 2011 The 7 1/4% notes Redemption date 2013	Dec. 31, 2011 The 7 1/4% notes Redemption date 2014	Dec. 31, 2011 The 7 1/4% notes GBP GBP (£)	Jan. 31, 2011 The 7 3/4% notes due 2015 USD ($)	Sep. 30, 2010 The 7 3/4% notes due 2015 USD ($)	Mar. 31, 2011 The 7 3/4% notes due 2015 USD ($)	Sep. 30, 2010 The 7 3/4% notes due 2015 USD ($)	Dec. 31, 2011 The 7 3/4% notes due 2015	Dec. 31, 2010 The 7 3/4% notes due 2015 USD ($)	Sep. 29, 2010 The 7 3/4% notes due 2015 USD ($)	Dec. 31, 2011 The 6 5/8% notes USD ($)	Dec. 31, 2010 The 6 5/8% notes USD ($)	Dec. 31, 2011 The 6 5/8% notes Redemption date 2011	Dec. 31, 2011 The 6 5/8% notes Redemption date 2012	Dec. 31, 2011 The 6 5/8% notes Redemption date 2013	Dec. 31, 2011 The 6 5/8% notes Redemption date 2014	Dec. 31, 2011 The 6 5/8% notes Redemption date 2015	Dec. 31, 2011 The 6 5/8% notes Redemption date 2016	Dec. 31, 2011 The 6 5/8% notes USD USD ($)	Dec. 31, 2011 The Subsidiary notes USD ($)	Dec. 31, 2010 The Subsidiary notes USD ($)	Dec. 31, 2011 The Subsidiary notes Redemption date 2012	Dec. 31, 2011 The Subsidiary notes Redemption date 2013	Dec. 31, 2011 The Subsidiary notes Redemption date 2014	Dec. 31, 2011 The Subsidiary notes Redemption date 2015	Dec. 31, 2011 The Subsidiary notes Redemption date 2016	Dec. 31, 2011 The Subsidiary notes Redemption date 2017	Dec. 31, 2011 The Subsidiary notes CAD	Dec. 31, 2011 The 8 3/4% notes USD ($)	Dec. 31, 2010 The 8 3/4% notes USD ($)	Dec. 31, 2011 The 8 3/4% notes Redemption date 2011	Dec. 31, 2011 The 8 3/4% notes Redemption date 2012	Dec. 31, 2011 The 8 3/4% notes Redemption date 2013	Dec. 31, 2011 The 8 3/4% notes Redemption date 2014	Dec. 31, 2011 The 8 3/4% notes Redemption date 2015	Dec. 31, 2011 The 8 3/4% notes Redemption date 2016	Dec. 31, 2011 The 8 3/4% notes Redemption date 2017	Dec. 31, 2011 The 8 3/4% notes Redemption date 2018	Dec. 31, 2011 The 8 3/4% notes USD USD ($)	Dec. 31, 2011 The 8% notes due 2018 USD ($)	Dec. 31, 2010 The 8% notes due 2018 USD ($)	Dec. 31, 2011 The 8% notes due 2018 Redemption date 2011	Dec. 31, 2011 The 8% notes due 2018 Redemption date 2012	Dec. 31, 2011 The 8% notes due 2018 Redemption date 2013	Dec. 31, 2011 The 8% notes due 2018 Redemption date 2014	Dec. 31, 2011 The 8% notes due 2018 Redemption date 2015	Dec. 31, 2011 The 8% notes due 2018 Redemption date 2016	Dec. 31, 2011 The 8% notes due 2018 Redemption date 2017	Dec. 31, 2011 The 8% notes due 2018 Redemption date 2018	Dec. 31, 2011 The 8% notes due 2018 USD USD ($)	Dec. 31, 2011 The 6 3/4% notes USD ($)	Dec. 31, 2010 The 6 3/4% notes USD ($)	Dec. 31, 2009 The 6 3/4% notes	Dec. 31, 2011 The 6 3/4% notes Redemption date 2011	Dec. 31, 2011 The 6 3/4% notes Redemption date 2012	Dec. 31, 2011 The 6 3/4% notes Redemption date 2013	Dec. 31, 2011 The 6 3/4% notes Redemption date 2014	Dec. 31, 2011 The 6 3/4% notes Redemption date 2015	Dec. 31, 2011 The 6 3/4% notes Redemption date 2016	Dec. 31, 2011 The 6 3/4% notes Redemption date 2017	Dec. 31, 2011 The 6 3/4% notes Redemption date 2018	Dec. 31, 2011 The 6 3/4% notes EUR EUR (€)	Sep. 30, 2011 The 7 3/4% notes due 2019 USD ($)	Dec. 31, 2011 The 7 3/4% notes due 2019 USD ($)	Dec. 31, 2011 The 7 3/4% notes due 2019 Redemption date 2015	Dec. 31, 2011 The 7 3/4% notes due 2019 Redemption date 2016	Dec. 31, 2011 The 7 3/4% notes due 2019 Redemption date 2017	Dec. 31, 2011 The 7 3/4% notes due 2019 Redemption date 2018	Dec. 31, 2011 The 7 3/4% notes due 2019 USD USD ($)	Dec. 31, 2011 The 8% notes due 2020 USD ($)	Dec. 31, 2010 The 8% notes due 2020 USD ($)	Dec. 31, 2011 The 8% notes due 2020 Redemption date 2013	Dec. 31, 2011 The 8% notes due 2020 Redemption date 2014	Dec. 31, 2011 The 8% notes due 2020 Redemption date 2015	Dec. 31, 2011 The 8% notes due 2020 Redemption date 2016	Dec. 31, 2011 The 8% notes due 2020 Redemption date 2017	Dec. 31, 2011 The 8% notes due 2020 Redemption date 2018	Dec. 31, 2011 The 8% notes due 2020 USD USD ($)	Dec. 31, 2011 The 8 3/8% notes USD ($)	Dec. 31, 2010 The 8 3/8% notes USD ($)	Dec. 31, 2011 The 8 3/8% notes Redemption date 2014	Dec. 31, 2011 The 8 3/8% notes Redemption date 2015	Dec. 31, 2011 The 8 3/8% notes Redemption date 2016	Dec. 31, 2011 The 8 3/8% notes Redemption date 2017	Dec. 31, 2011 The 8 3/8% notes Redemption date 2018	Dec. 31, 2011 The 8 3/8% notes USD USD ($)	Sep. 30, 2009 The 8 5/8% notes USD ($)	Dec. 31, 2011 Real Estate Mortgages, Capital Leases and Other USD ($)	Dec. 31, 2010 Real Estate Mortgages, Capital Leases and Other USD ($)	Dec. 31, 2011 Real estate mortgages USD ($)	Dec. 31, 2010 Real estate mortgages USD ($)	Dec. 31, 2011 Capital lease obligations USD ($)	Dec. 31, 2010 Capital lease obligations USD ($)	Dec. 31, 2011 Other notes and obligations USD ($)	Dec. 31, 2010 Other notes and obligations USD ($)
Long-term Debt Information
Carrying Amount	$ 3,353,588,000	$ 3,008,207,000								$ 396,200,000						$ 96,000,000							$ 487,500,000		$ 233,115,000	$ 232,530,000												$ 233,234,000		$ 318,025,000	$ 317,529,000								$ 171,273,000	$ 175,306,000								$ 200,000,000	$ 200,000,000										$ 49,806,000	$ 49,777,000										$ 328,750,000	$ 338,129,000												$ 400,000,000						$ 300,000,000	$ 300,000,000								$ 548,346,000	$ 548,174,000								$ 220,773,000	$ 217,328,000	$ 5,232,000	$ 7,492,000	$ 207,300,000	$ 200,996,000	$ 8,241,000	$ 8,840,000
Current portion of long-term debt	(73,320,000)	(96,081,000)		(658,000)		(56,407,000)	(2,658,000)	(2,606,000)																														(51,694,000)
Long-term Debt, net of current portion	3,280,268,000	2,912,126,000		2,378,040,000		2,559,780,000	185,953,000	191,010,000
Fair Value										396,200,000						96,000,000							487,500,000		233,115,000	234,855,000												231,683,000		320,400,000	321,592,000								174,698,000	182,099,000								209,000,000	209,625,000										47,607,000	53,756,000										312,352,000	337,631,000												422,750,000						313,313,000	316,313,000								586,438,000	589,188,000								220,773,000	217,328,000
Stated Interest Rate (as a percent)																									7.25%	7.25%	7.25%							7.75%		7.75%	7.75%	7.75%		6.625%	6.625%								7.50%	7.50%								8.75%	8.75%										8.00%	8.00%										6.75%	6.75%	6.75%											7.75%						8.00%	8.00%								8.375%	8.375%
Senior Subordinated Notes issued at par (as a percent)																																																																																												100.00%
Capital Stock of First Tier Foreign Subsidiaries Pledged to Secure Debt (as a percent)	66.00%
Maximum Borrowing Capacity																			725,000,000	400,000,000	150,000,000	175,000,000		500,000,000
Optional expanded maximum borrowing capacity												1,800,000,000
Number of Banks Supporting the Credit Facility																			19
Commitment fee (as a percent)														0.50%	0.30%
Write-off of deferred financings costs									1,843,000
Outstanding borrowings under credit facility																96,000,000
Letters of Credit Outstanding											5,833,000
Remaining availability under credit facility																623,167,000
Effective interest rate under term loan facility (as a percent)																4.00%							2.30%
Redemption price per one thousand dollars of principal amount (in dollars)																																		1,012.92
Principal amount used for ratio of debt instrument redemption price																																							1,000
Commitment Fee																2,038,000	2,348,000	1,953,000
Principal amount of notes	3,359,195,000																																	431,255,000		431,255,000
Loss (Gain) on early extinguishment of debt	993,000	1,792,000	3,031,000																																(850,000)	1,792,000																																																																																3,031,000
Aggregate principal amount of public offering																																																																																												400,000,000
Net proceeds from sales of senior subordinated notes	394,000,000		539,688,000	394,000,000	539,688,000																																																																																							394,000,000
Redemption of debt instrument outstanding																																	231,255,000	200,000,000
Commitment fee (as a percent)														0.50%	0.30%
Minimum stated interest rate (as a percent)																																																																																																																							2.00%
Maximum stated interest rate (as a percent)																																																																																																																							5.50%
Weighted average interest rate (as a percent)																																																																																																																									5.80%		8.70%
Number of series of subordinated notes	9			8			1
Redemption price (as a percent)																												101.208%	100.00%	100.00%	100.00%											100.00%	100.00%	100.00%	100.00%	100.00%	100.00%				103.75%	102.50%	101.25%	100.00%	100.00%	100.00%				104.375%	102.917%	101.458%	100.00%	100.00%	100.00%	100.00%	100.00%				104.00%	102.667%	101.333%	100.00%	100.00%	100.00%	100.00%	100.00%					103.375%	102.25%	101.125%	100.00%	100.00%	100.00%	100.00%	100.00%				103.875%	101.938%	100.00%	100.00%				104.00%	102.667%	101.333%	100.00%	100.00%	100.00%				104.188%	102.792%	101.396%	100.00%	100.00%
Percentage of redemption price of face value after date of redemption for senior subordinated notes	100.00%
Repurchase price in the event of change of control, percentage of principal plus accrued and unpaid interest	101.00%
Principal amount of notes																																£ 150,000,000																$ 320,000,000									175,000,000											$ 200,000,000											$ 50,000,000												€ 255,000,000							$ 400,000,000									$ 300,000,000								$ 550,000,000
Repayments Of Loan
Loan payment as a percentage of principal in first three quarterly installments of year five																								10.00%
Loan payment as a percentage of principal in final quarterly installment of year five																								35.00%
June 30, 2012 (as a percent)																								5.00%
June 30, 2013 (as a percent)																								5.00%
June 30, 2014 (as a percent)																								10.00%
June 30, 2015 (as a percent)																								15.00%
June 27, 2016 (as a percent)																								65.00%
Debt covenants
Revolving Credit and Term Leverage Ratio											3.4		2.9
Revolving Credit and Term Leverage Ratio, Maximum Allowable											5.5		5.5
Bond Leverage Ratio, per Indentures											3.9		3.4
Bond Leverage Ratio, per Indentures, Maximum Allowable											6.5		6.5
Revolving Credit and Term Loan Fixed Charge Coverage Ratio											1.5
Revolving Credit and Term Loan Fixed Charge Coverage Ratio, Minimum Allowable											1.2

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Related Party Transactions

12 Months Ended

Dec. 31, 2011

Related Party Transactions

Related Party Transactions

11. Related Party Transactions

        We lease space to an affiliated company, Schooner Capital LLC ("Schooner"), for its corporate headquarters located in Boston, Massachusetts. For the years ended December 31, 2009, 2010 and 2011, Schooner paid rent to us totaling $177, $198 and $188, respectively. One of the members of our board of directors and several of his family members hold an indirect equity interest in one of the stockholders that received proceeds in connection with the acquisition of our joint venture in Poland. As a result of this equity interest, such board member, together with several of his family members, received approximately 24% of the purchase price that we paid in connection with this transaction and will receive the same percentage of any future contingent consideration. See Note 6.

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2011

Summary of Significant Accounting Policies

Useful lives of Property, Plant and Equipment

Building and building improvements	5 to 40 years
Leasehold improvements	10 years or the life of the lease, whichever is shorter
Racking	2 to 20 years
Warehouse equipment	3 to 10 years
Vehicles	2 to 10 years
Furniture and fixtures	2 to 10 years
Computer hardware and software	3 to 5 years

Property, Plant and Equipment at cost

	December 31,
	2010		2011
Land	$	170,576	$	172,454
Buildings and building improvements		1,064,478		1,109,176
Leasehold improvements		469,324		474,965
Racking		1,368,218		1,420,180
Warehouse equipment/vehicles		362,663		355,951
Furniture and fixtures		76,971		79,193
Computer hardware and software		548,453		527,585
Construction in progress		100,727		93,090
	$	4,161,410	$	4,232,594

Reconciliation of liabilities for asset retirement obligations (included in other long-term liabilities)

	December 31,
	2010			2011
Asset Retirement Obligations, beginning of the year	$	10,734		$	9,465
Liabilities Incurred		531			300
Liabilities Settled		(70	)		(774	)
Accretion Expense		1,254			1,327
Change in Probability Adjustment		(2,745	)		(176	)
Foreign Currency Exchange Movement		(239	)		(26	)
Asset Retirement Obligations, end of the year	$	9,465		$	10,116

Changes in the carrying value of goodwill attributable to each reportable operating segment

	North American Business			International Physical Business			Total Consolidated
Gross Balance as of December 31, 2009	$	1,996,959		$	565,717		$	2,562,676
Non-deductible goodwill acquired during the year		1,700			4,030			5,730
Adjustments to purchase reserves		(401	)		—			(401	)
Fair value and other adjustments(1)		2,553			164			2,717
Currency effects		11,238			(27,532	)		(16,294	)
Gross Balance as of December 31, 2010		2,012,049			542,379			2,554,428
Deductible goodwill acquired during the year		1,398			—			1,398
Non-deductible goodwill acquired during the year		—			35,207			35,207
Fair value and other adjustments(2)		2,161			(865	)		1,296
Currency effects		(5,367	)		(12,677	)		(18,044	)
Gross Balance as of December 31, 2011	$	2,010,241		$	564,044		$	2,574,285
Accumulated Amortization Balance as of December 31, 2009	$	175,158		$	14,199		$	189,357
Goodwill impairment		85,909			—			85,909
Currency effects		562			(961	)		(399	)
Accumulated Amortization Balance as of December 31, 2010		261,629			13,238			274,867
Goodwill impairment		—			46,500			46,500
Currency effects		(267	)		(1,083	)		(1,350	)
Accumulated Amortization Balance as of December 31, 2011	$	261,362		$	58,655		$	320,017
Net Balance as of December 31, 2009	$	1,821,801		$	551,518		$	2,373,319
Net Balance as of December 31, 2010	$	1,750,420		$	529,141		$	2,279,561
Net Balance as of December 31, 2011	$	1,748,879		$	505,389		$	2,254,268
Accumulated Goodwill Impairment Balance as of December 31, 2010	$	85,909		$	—		$	85,909
Accumulated Goodwill Impairment Balance as of December 31, 2011	$	85,909		$	46,500		$	132,409

(1)

Fair value and other adjustments primarily include $(711) of adjustments to property, plant and equipment, net, customer relationships and deferred income taxes, as well as $1,428 of cash paid related to prior year's acquisitions and $2,000 of contingent earn-out obligations accrued and unpaid as of December 31, 2010 related to a 2007 acquisition.

(2)

Fair value and other adjustments primarily include $(835) of adjustments to property, plant and equipment, net, customer relationships and deferred income taxes, as well as $131 of cash paid related to prior year's acquisitions and $2,000 of contingent earn-out obligations accrued and unpaid as of December 31, 2011 related to a 2007 acquisition.

Gross carrying amount and accumulated amortization

	December 31,
Gross Carrying Amount	2010		2011
Customer relationship and acquisition costs	$	533,223	$	593,901
Other intangible assets (included in other assets, net)		7,014		6,761
Accumulated Amortization
Customer relationship and acquisition costs	$	153,415	$	183,752
Other intangible assets (included in other assets, net)		4,348		4,899

Amortization expense

	Year Ended December 31,
	2009		2010		2011
Customer relationship and acquisition costs:
Amortization expense included in depreciation and amortization	$	23,104	$	24,435	$	27,900
Amortization expense charged to revenues		8,096		9,710		10,100
Other intangible assets:
Amortization expense included in depreciation and amortization		1,021		1,010		961

Estimated amortization expense for existing intangible assets for the next five succeeding fiscal years

	Estimated Amortization
	Included in Depreciation and Amortization		Charged to Revenues
2012	$	30,505	$	6,279
2013		29,618		4,149
2014		29,077		2,601
2015		28,758		1,187
2016		28,461		440

Components of accrued expenses

	December 31,
	2010		2011
Interest	$	59,774	$	59,268
Payroll and vacation		76,979		75,384
Incentive compensation		26,285		62,550
Self-insured liabilities (Note 10.b.)		43,901		39,358
Income taxes		29,484		4,957
Other		146,247		177,314
	$	382,670	$	418,831

Stock-based compensation expense related to continuing operations

	Year Ended December 31,
	2009		2010		2011
Cost of sales (excluding depreciation and amortization)	$	248	$	730	$	914
Selling, general and administrative expenses		14,962		16,544		16,336
Total stock-based compensation	$	15,210	$	17,274	$	17,250

Summary of the weighted average assumptions used for stock option grants

Weighted Average Assumptions	2009		2010		2011
Expected volatility		32.1%		32.8%		33.4%
Risk-free interest rate		2.64%		2.48%		2.40%
Expected dividend yield		None		1.2%		3%
Expected life		6.4 Years		6.4 Years		6.3 Years

Summary of stock option activity

	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 31, 2010		12,140,560		$	24.30
Granted		1,077,648			28.60
Exercised		(3,753,905	)		21.78
Forfeited		(2,226,605	)		25.90
Expired		(119,240	)		27.72
Outstanding at December 31, 2011		7,118,458		$	25.73		6.72	$	38,002
Options exercisable at December 31, 2011		3,749,481		$	25.19		5.66	$	22,446
Options expected to vest		3,103,537		$	26.36		7.91	$	14,245

Aggregate intrinsic value of stock options exercised

	Year Ended December 31,
	2009		2010		2011
Aggregate intrinsic value of stock options exercised	$	18,929	$	12,063	$	37,901

Summary of restricted stock and RSUs activity

	Restricted Stock and RSUs			Weighted- Average Grant-Date Fair Value
Non-vested at December 31, 2010		168,221		$	22.53
Granted		609,743			29.77
Vested		(39,844	)		23.69
Forfeited		(127,169	)		26.53
Non-vested at December 31, 2011		610,951		$	28.85

Summary of Performance Unit (PU) activity

	PUs
Non-vested at December 31, 2010		—
Granted		154,239
Vested		—
Forfeited		(41,490	)
Non-vested at December 31, 2011		112,749

Calculation of basic and diluted net income (loss) per share attributable to the entity

	Year Ended December 31,
	2009			2010			2011
Income (Loss) from continuing operations	$	231,517		$	166,739		$	246,412
Total income (loss) from discontinued operations (see Note 14)	$	(12,138	)	$	(219,417	)	$	153,180
Net income (loss) attributable to Iron Mountain Incorporated	$	217,950		$	(57,586	)	$	395,538
Weighted-average shares—basic		202,812,000			201,991,000			194,777,000
Effect of dilutive potential stock options		1,458,777			—			1,060,477
Effect of dilutive potential restricted stock, RSUs and PUs		41			—			100,136
Weighted-average shares—diluted		204,270,818			201,991,000			195,937,613
Earnings (Losses) per share—basic:
Income (Loss) from continuing operations	$	1.14		$	0.83		$	1.27
Total income (loss) from discontinued operations (see Note 14)	$	(0.06	)	$	(1.09	)	$	0.79
Net income (loss) attributable to Iron Mountain Incorporated—basic	$	1.07		$	(0.29	)	$	2.03
Earnings (Losses) per share—diluted:
Income (Loss) from continuing operations	$	1.13		$	0.83		$	1.26
Total income (loss) from discontinued operations (see Note 14)	$	(0.06	)	$	(1.09	)	$	0.78
Net income (loss) attributable to Iron Mountain Incorporated—diluted	$	1.07		$	(0.29	)	$	2.02
Antidilutive stock options, RSUs and PUs, excluded from the calculation		8,085,784			9,305,328			3,973,760

Roll forward of allowance for doubtful accounts and credit memo reserves

Year Ended December 31,	Balance at Beginning of the Year		Credit Memos Charged to Revenue		Allowance for Bad Debts Charged to Expense		Other(1)			Deductions(2)			Balance at End of the Year
2009	$	16,412	$	39,018	$	8,994	$	1,006		$	(45,835	)	$	19,595
2010		19,595		42,204		11,801		(481	)		(52,372	)		20,747
2011		20,747		39,343		9,506		(205	)		(46,114	)		23,277

(1)

Primarily consists of recoveries of previously written-off accounts receivable, allowances of businesses acquired and the impact associated with currency translation adjustments.

(2)

Primarily consists of the write-off of accounts receivable.

Assets and liabilities carried at fair value measured on a recurring basis

			Fair Value Measurements at December 31, 2010 Using
Description	Total Carrying Value at December 31, 2010		Quoted prices in active markets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)
Money Market Funds(1)	$	107,129	$	—		$	107,129		$	—
Time Deposits(1)		134,022		—			134,022			—
Trading Securities		9,215		8,527	(2)		688	(1)		—
Derivative Assets(3)		2,500		—			2,500			—
Derivative Liabilities(3)		2,440		—			2,440			—

			Fair Value Measurements at December 31, 2011 Using
Description	Total Carrying Value at December 31, 2011		Quoted prices in active markets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)
Money Market Funds(1)	$	35,110	$	—		$	35,110		$	—
Time Deposits(1)		146,713		—			146,713			—
Trading Securities		9,124		8,497	(2)		627	(1)		—
Derivative Assets(3)		2,803		—			2,803			—
Derivative Liabilities(3)		435		—			435			—

(1)

Money market funds and time deposits (including certain trading securities) are measured based on quoted prices for similar assets and/or subsequent transactions.

(2)

Securities are measured at fair value using quoted market prices.

(3)

Our derivative assets and liabilities primarily relate to short-term (six months or less) foreign currency contracts that we have entered into to hedge our intercompany exposures denominated in British pounds sterling and Australian dollars. We calculate the fair 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.

Other expense (income), net

	Year Ended December 31,
	2009			2010		2011
Foreign currency transaction (gains) losses, net	$	(12,845	)	$	5,664	$	17,352
Debt extinguishment expense, net		3,031			1,792		993
Other, net		(2,785	)		1,312		(5,302	)
	$	(12,599	)	$	8,768	$	13,043

Schedule of effect of the immaterial restatement to certain line items of consolidated statements of operations

	Year Ended December 31,
	2009			2010
Storage	$	(2,327	)	$	(2,955	)
Service		(2,486	)		(3,068	)
Total Revenues	$	(4,813	)	$	(6,023	)
Operating Income (Loss)	$	(4,813	)	$	(6,023	)
Income (Loss) from Continuing Operations before Provision (Benefit) for Income Taxes	$	(4,813	)	$	(6,023	)
Provision (Benefit) for Income Taxes	$	(1,886	)	$	(2,337	)
Income (Loss) from Continuing Operations	$	(2,927	)	$	(3,686	)
Net Income (Loss)	$	(2,927	)	$	(3,686	)
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	(2,927	)	$	(3,686	)
Earnings (Losses) per Share—Basic:
Income (Loss) from Continuing Operations	$	(0.01	)	$	(0.02	)
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	(0.01	)	$	(0.02	)
Earnings (Losses) per Share—Diluted:
Income (Loss) from Continuing Operations	$	(0.01	)	$	(0.02	)
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	(0.01	)	$	(0.02	)

Schedule of effect of the immaterial restatement to certain line items of consolidated balance sheets

        The following table sets forth the effect of the immaterial restatement to certain line items of our consolidated balance sheet as of December 31, 2010:

Prepaid Expenses and Other	$	6,660
Total Current Assets	$	6,660
Total Assets	$	6,660
Deferred Revenue	$	17,057
Total Current Liabilities	$	17,057
Retained Earnings	$	(10,397	)
Total Iron Mountain Incorporated Stockholders' Equity	$	(10,397	)
Total Equity	$	(10,397	)
Total Liabilities and Equity	$	6,660

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Derivative Instruments and Hedging Activities (Details 2) (Derivatives Not Designated as Hedging Instruments, USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Fair value of derivative instruments
Asset Derivatives	$ 2,803	$ 2,500
Liability Derivatives	435	2,440
Foreign exchange contracts | Current assets
Fair value of derivative instruments
Asset Derivatives	2,803	2,500
Foreign exchange contracts | Current liabilities
Fair value of derivative instruments
Liability Derivatives	$ 435	$ 2,440

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Summary of Significant Accounting Policies (Details 5) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Deferred financing costs
Gross carrying amount	$ 54,826	$ 50,242
Accumulated amortization	19,028	21,096
Accrued expenses
Minimum percentage of current liability required to be disclosed separately	5.00%
Interest	59,268	59,774
Payroll and vacation	75,384	76,979
Incentive compensation	62,550	26,285
Self-insured liabilities	39,358	43,901
Income taxes	4,957	29,484
Other	177,314	146,247
Accrued expenses	418,831	382,670
Amortization expense included in depreciation and amortization
Estimated amortization expense for existing intangible assets for the next five succeeding fiscal years
2012	30,505
2013	29,618
2014	29,077
2015	28,758
2016	28,461
Amortization expense charged to revenues
Estimated amortization expense for existing intangible assets for the next five succeeding fiscal years
2012	6,279
2013	4,149
2014	2,601
2015	1,187
2016	440
Customer Relationships and Acquisition Costs.
Amortizable intangible assets
Gross carrying amount	593,901	533,223
Accumulated amortization	183,752	153,415
Customer Relationships and Acquisition Costs. | Amortization expense included in depreciation and amortization
Amortizable intangible assets
Amortization expense	27,900	24,435	23,104
Customer Relationships and Acquisition Costs. | Amortization expense charged to revenues
Amortizable intangible assets
Amortization expense	10,100	9,710	8,096
Customer relationship intangible assets acquired through business combinations
Amortizable intangible assets
Minimum useful life of finite-lived intangible assets (in years)	10
Maximum useful life of finite-lived intangible assets (in years)	30
Weighted-average useful life of finite-lived intangible assets (in years)	19
Customer's current record management vendor
Amortizable intangible assets
Minimum useful life of finite-lived intangible assets (in years)	1
Maximum useful life of finite-lived intangible assets (in years)	10
Weighted-average useful life of finite-lived intangible assets (in years)	4
Initial costs for transport of boxes
Amortizable intangible assets
Minimum useful life of finite-lived intangible assets (in years)	1
Maximum useful life of finite-lived intangible assets (in years)	30
Weighted-average useful life of finite-lived intangible assets (in years)	25
Other intangible assets
Amortizable intangible assets
Minimum useful life of finite-lived intangible assets (in years)	2
Maximum useful life of finite-lived intangible assets (in years)	10
Weighted-average useful life of finite-lived intangible assets (in years)	7
Gross carrying amount	6,761	7,014
Accumulated amortization	4,899	4,348
Other intangible assets | Amortization expense included in depreciation and amortization
Amortizable intangible assets
Amortization expense	961	1,010	1,021
Deferred Financing Costs | Amortization expense charged to interest expense
Estimated amortization expense for existing intangible assets for the next five succeeding fiscal years
2012	5,969
2013	5,969
2014	5,512
2015	5,322
2016	$ 3,978

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CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
CONSOLIDATED STATEMENTS OF OPERATIONS
Interest Income	$ 2,313	$ 1,785	$ 2,563

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
CONSOLIDATED STATEMENTS OF CASH FLOWS
Amortization of deferred financing costs and bond discount	$ 6,318	$ 5,357	$ 5,117

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Acquisitions (Details 3) In Thousands, unless otherwise specified	Dec. 31, 2011 USD ($)	Dec. 31, 2011 INR
Acquisitions
Equity interest held by noncontrolling owners available for sale (as a percent)	49.90%	49.90%
Equity interest held by noncontrolling owners available for sale, price under agreement	$ 1,563	84,835

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Related Party Transactions (Details) (USD $) In Thousands, unless otherwise specified		12 Months Ended
	Jan. 31, 2011 Joint venture in Poland	Dec. 31, 2011 Schooner Capital LLC	Dec. 31, 2010 Schooner Capital LLC	Dec. 31, 2009 Schooner Capital LLC	Dec. 31, 2011 One of the members of board of directors and several of his family members Joint venture in Poland
Related Party Transactions
Rental income		$ 188	$ 198	$ 177
Percentage of purchase price receivable	24.00%				24.00%

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Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2011

Derivative Instruments and Hedging Activities

Fair value of derivative instruments

	Asset Derivatives
	December 31,
	2010			2011
Derivatives Not Designated as Hedging Instruments	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Foreign exchange contracts	Current assets	$	2,500	Current assets	$	2,803
Total		$	2,500		$	2,803

	Liability Derivatives
	December 31,
	2010			2011
Derivatives Not Designated as Hedging Instruments	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Foreign exchange contracts	Current liabilities	$	2,440	Current liabilities	$	435
Total		$	2,440		$	435

Fair value of derivative instruments, amount of (gain) loss recognized in income

		Amount of (Gain) Loss Recognized in Income on Derivatives
		December 31,
	Location of (Gain) Loss Recognized in Income on Derivative
Derivatives Not Designated as Hedging Instruments		2009		2010		2011
Foreign exchange contracts	Other expense (income), net	$	11,952	$	2,025	$	(1,209	)
Total		$	11,952	$	2,025	$	(1,209	)

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Summary of Significant Accounting Policies (Details 2) (USD $) In Thousands, unless otherwise specified	12 Months Ended				12 Months Ended		12 Months Ended		12 Months Ended		12 Months Ended				12 Months Ended		12 Months Ended				12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011 Land	Dec. 31, 2010 Land	Dec. 31, 2011 Building and building improvements year	Dec. 31, 2010 Building and building improvements	Dec. 31, 2011 Leasehold improvements year	Dec. 31, 2010 Leasehold improvements	Dec. 31, 2011 Racking year	Dec. 31, 2010 Racking	Dec. 31, 2011 Warehouse equipment year	Dec. 31, 2011 Vehicles year	Dec. 31, 2011 Warehouse Equipment/vehicles	Dec. 31, 2010 Warehouse Equipment/vehicles	Dec. 31, 2011 Furniture and fixtures year	Dec. 31, 2010 Furniture and fixtures	Dec. 31, 2011 Computer hardware and software year	Dec. 31, 2010 Computer hardware and software	Dec. 31, 2011 Construction in progress	Dec. 31, 2010 Construction in progress	Dec. 31, 2011 International Business Computer hardware and software	Dec. 31, 2009 Corporate Computer hardware and software	Dec. 31, 2011 North American Business Computer hardware and software
Property, plant and equipment
Minimum useful life (in years)					5				2		3	2			2		3
Maximum useful life (in years)					40		10		20		10	10			10		5
Property, plant and equipment, stated at cost	$ 4,232,594	$ 4,161,410	$ 172,454	$ 170,576	$ 1,109,176	$ 1,064,478	$ 474,965	$ 469,324	$ 1,420,180	$ 1,368,218			$ 355,951	$ 362,663	$ 79,193	$ 76,971	$ 527,585	$ 548,453	$ 93,090	$ 100,727
Deferred software cost written off																	3,500				3,050	600	450
A reconciliation of liabilities for assets retirement obligation
Assets Retirement Obligations, beginning of the year	9,465	10,734
Liabilities Incurred	300	531
Liabilities Settled	(774)	(70)
Accretion Expense	1,327	1,254
Change in Probability Adjustment	(176)	(2,745)
Foreign Currency Exchange Movement	(26)	(239)
Assets Retirement Obligations, end of the year	$ 10,116	$ 9,465

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies

Commitments and Contingencies

10. Commitments and Contingencies

• a.

  Leases

        Most of our leased facilities are leased under various operating leases that typically have initial lease terms of five to ten years. A majority of these leases have renewal options with one or more five year options to extend and may have fixed or Consumer Price Index escalation clauses. We also lease equipment under operating leases (primarily computers) which have an average lease life of three years. Vehicles and office equipment are also leased and have remaining lease lives ranging from one to seven years. Total rent expense (including common area maintenance charges) under all of our operating leases was $240,944, $238,480 and $242,954 for the years ended December 31, 2009, 2010 and 2011, respectively. Included in total rent expense was sublease income of $4,126, $2,721 and $2,974 for the years ended December 31, 2009, 2010 and 2011, respectively.

        Estimated minimum future lease payments (excluding common area maintenance charges) include payments for certain renewal periods at our option because failure to renew results in an economic disincentive due to significant capital expenditure costs (e.g., racking), thereby making it reasonably assured that we will renew the lease. Such payments in effect at December 31, are as follows:

	Operating Lease Payment(1)		Sublease Income		Capital Leases
2012	$	219,951	$	2,317	$	51,490
2013		209,417		1,932		48,787
2014		197,258		1,648		31,837
2015		187,507		1,629		22,655
2016		180,753		1,145		17,450
Thereafter		1,714,261		1,934		138,661
Total minimum lease payments	$	2,709,147	$	10,605		310,880
Less amounts representing interest						(103,580	)
Present value of capital lease obligations					$	207,300

(1)

Includes $2,593, $1,975, $1,758, $1,752, $1,692 and $8,232 in 2012, 2013, 2014, 2015, 2016 and thereafter, respectively, related to our Italian Business (a total of $18,002).

        In addition, we have certain contractual obligations related to purchase commitments which require minimum payments of $31,852, $11,546, $8,800, $982, $343 and $232 in 2012, 2013, 2014, 2015, 2016 and thereafter, respectively.

• b.

  Self-Insured Liabilities

        We are self-insured up to certain limits for costs associated with workers' compensation claims, vehicle accidents, property and general business liabilities, and benefits paid under employee healthcare and short-term disability programs. At December 31, 2010 and 2011 there were $43,901 and $39,358, respectively, of self-insurance accruals reflected in accrued expenses of our consolidated balance sheets. The measurement of these costs requires the consideration of historical cost experience and judgments about the present and expected levels of cost per claim. We account for these costs primarily through actuarial methods, which develop estimates of the undiscounted liability for claims incurred, including those claims incurred but not reported. These methods provide estimates of future ultimate claim costs based on claims incurred as of the balance sheet date.

• c.

  Litigation

        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 estimable. We record legal costs associated with loss contingencies as expenses in the period in which they are incurred. The matters described below represent our significant loss contingencies. We have evaluated each matter and, if both probable and estimable, accrued an amount that represents our estimate of any probable loss associated with such matter. In addition, we have estimated a reasonably possible range for all loss contingencies including those described below. We believe it is reasonably possible that we could incur aggregate losses in addition to amounts currently accrued for all matters up to an additional $51,300 over the next several years.

• d.

  London Fire

        In July 2006, we experienced a significant fire in a leased records and information management facility in London, England, that resulted in the complete destruction of the facility and its contents. The London Fire Brigade ("LFB") issued a report in which it concluded that the fire resulted either from human agency, i.e., arson, or an unidentified ignition device or source, and its report to the Home Office concluded that the fire resulted from a deliberate act. The LFB also concluded that the installed sprinkler system failed to control the fire because the primary electric fire pump was disabled prior to the fire and the standby diesel fire pump was disabled in the early stages of the fire by third-party contractors. We have received notices of claims from customers or their subrogated insurance carriers under various theories of liability arising out of lost data and/or records as a result of the fire. Certain of those claims have resulted in litigation in courts in the United Kingdom. We deny any liability in respect of the London fire, and we have referred these claims to our excess warehouse legal liability insurer, which has been defending them to date under a reservation of rights. Certain of the claims have been settled for nominal amounts, typically one to two British pounds sterling per carton, as specified in the contracts, which amounts have been or will be reimbursed to us from our primary property insurer. We believe we carry adequate property and liability insurance related to this incident.

• e.

  Chile Earthquake

        As a result of the February 27, 2010 earthquake in Chile, we experienced damage to certain of our 13 owned and leased records management facilities in that region. None of our facilities were destroyed by fire or significantly impacted by water damage. However, the structural integrity of five buildings was compromised, and some of the racking included in certain buildings was damaged or destroyed. Some customer materials were impacted by this event. Revenues from Chile represent less than 1% of our consolidated enterprise revenues. We believe we carry adequate property and liability insurance and do not expect that this event will have a material impact on our consolidated results of operations or financial condition. We received cumulative payments of $33,800 from our insurance carriers of which $27,000 was received in 2010 and $6,800 was received in 2011. Such amount represents final settlements of claims filed with our insurance carriers. Cash from our insurance settlements was used to fund capital expenditures and for general working capital needs. Our policy related to business interruption insurance recoveries is to record gains within other (income) expense, net in our consolidated statement of operations and proceeds received within cash flows from operating activities in our consolidated statement of cash flows. Such amounts are recorded in the period the cash is received. We recorded approximately $100 within other income (expense), net in our consolidated statement of operations associated with business interruption insurance recoveries in the year ended December 31, 2011. We have recorded gains on the disposal/write-down of property, plant and equipment, net in our statement of operations of approximately $10,200 for the year ended December 31, 2010. We have reflected approximately $14,800 of the cash proceeds received from our insurers in the year ended December 31, 2010 as proceeds from sales of property and equipment, net in our statement of cash flows. Our policy with respect to involuntary conversion of property, plant and equipment is to record any gain or loss within (gain) loss on disposal/write-down of property, plant and equipment, net within operating income in our consolidated statement of operations and proceeds received within cash flows from investing activities within our consolidated statement of cash flows. Losses are recorded when incurred and gains are recorded in the period when the cash received exceeds the carrying value of the related property, plant and equipment.

• f.

  Brazilian Litigation

        In September 2010, Iron Mountain do Brasil Ltda., our Brazilian operating subsidiary ("IMB"), was sued in Curitiba, Brazil in the 11th Lower Labor Claim Court. The plaintiff in the six related lawsuits, Sindicato dos Trabalhadores em Empresas de Serviços Contábeis, Assessoramento, Perícias, Informações, Pesquisas, e em Empresas Prestadoras de Serviços do Estado do Paraná (Union of Workers in Business Services Accounting, Advice, Expertise, Information, Research and Services Companies in the State of Parana), a labor union in Brazil, purported to represent 2,008 individuals who provided services for IMB. The complaint alleged that these individuals were incorrectly classified as non-employees by IMB and requested unspecified monetary damages, including attorneys' fees, unpaid wages, unpaid benefits and certain penalties. In August 2011, the court approved a settlement between the parties pursuant to which we will pay $2 for each of 531 individuals, subject to each individual's acceptance thereof. If all 531 individuals accept the settlement, it would result in payment by the Company of approximately $1,100. The claims of the remaining 1,477 individuals in the lawsuits not receiving proceeds in the settlement were dismissed by the court.

• g.

  Patent Infringement Lawsuit

        In August 2010, we were named as a defendant in a patent infringement suit filed in the U.S. District Court for the Eastern District of Texas by Oasis Research, LLC. The plaintiff alleges that the technology found in our Connected and LiveVault products infringed certain U.S. patents owned by the plaintiff and seeks an unspecified amount of damages. A final pre-trial conference has been scheduled for October 12, 2012. We expect the court to establish a trial date during the pre-trial conference. As part of the sale of our Digital Business discussed at Note 14, our Connected and LiveVault products were sold to Autonomy and Autonomy has assumed this obligation and the defense of this litigation and has agreed to indemnify us against any losses.

• h.

  Government Contract Billing Matter

        Since October, 2001, we have provided services to the U.S. Government under several General Services Administration ("GSA") multiple award schedule contracts (the "Schedules"). The earliest of the Schedules was renewed with certain modifications to its terms in October 2006. The Schedules contain a price reductions clause ("Price Reductions Clause") that requires us to offer to reduce the prices billed to the Government under the Schedules to correspond to the prices billed to certain benchmark commercial customers. Over the five years and three months ended December 31, 2011 we billed approximately $42,000 under the Schedules. In 2011, we initiated an internal review covering the contract period commencing in October 2006 and we discovered potential non-compliance with the Price Reductions Clause. We voluntarily disclosed the potential non-compliance to the GSA and its Office of Inspector General ("OIG") in June 2011. See Note 2.y.

        We continue to review this matter and will provide the GSA and OIG with information regarding our pricing practices and proposed pricing adjustment amount to be refunded. The GSA and OIG, however, may not agree with our determination of the refund amount and may request additional pricing adjustments, refunds, civil penalties, up to treble damages and/or interest related to our Schedules.

• i.

  State of Massachusetts Notices of Intention to Assess

        We are currently under audit by the state of Massachusetts for the 2004 through 2008 tax years. We have not received any final assessments to date. However, we have received notices of intention to assess for the 2004 to 2006 tax years in the amount of $7,867, including tax and penalties (but excluding interest). Currently this audit is on appeal with the Massachusetts Department of Revenue. The final outcome of this audit may result in an assessment of income tax, which is a component of the income tax provision, or an assessment of net worth tax, which is an operating charge. We intend to defend this matter vigorously.

• j.

  Italy Fire

        We experienced a fire at a facility we lease in Aprilla, Italy on November 4, 2011. All employees were evacuated safely and the cause of the fire is currently being investigated. The facility primarily stored archival and inactive business records for local area businesses.

        The leased facility, constructed in 2004, is one of approximately 1,000 facilities in our global portfolio and one of 10 facilities located in Italy. Despite quick response by local fire authorities, damage to the building was extensive and the building appears to be a total loss. We believe we carry adequate insurance and are in the process of assessing the impact of the fire but do not expect that this event will have a material impact to our consolidated financial condition, results of operations and cash flows.

        Our policy related to business interruption insurance recoveries is to record gains within other (income) expense, net in our consolidated statement of operations and proceeds received within cash flows from operating activities in our consolidated statement of cash flows. Such amounts are recorded in the period the cash is received. Our policy with respect to involuntary conversion of property, plant and equipment is to record any gain or loss within (gain) loss on disposal/write-down of property, plant and equipment, net within operating income in our consolidated statement of operations and proceeds received within cash flows from investing activities within our consolidated statement of cash flows. Losses are recorded when incurred and gains are recorded in the period when the cash received exceeds the carrying value of the related property, plant and equipment.