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Summary of Significant Accounting Policies (Tables)
 3 Months Ended
Mar. 31, 2014
Summary of Significant Accounting Policies  
Schedule of carrying value of goodwill, net for each of the reporting units

 

 

 
   Carrying Value
as of
March 31, 2014		  

North American Records and Information Management(1)

   $ 1,401,347  

Intellectual Property Management(1)

     50,439  

Fulfillment Services(1)

     8,407  

North American Data Management(1)

     365,049  

Emerging Businesses

     —  

New Western Europe

     389,752  

New Emerging Markets

     90,619  

Latin America

     92,298  

Australia and Singapore

     65,853  

Greater China

     2,237  

India

     —  

Russia and Ukraine

     —  
       
​ ​ ​ ​ ​

Total

   $ 2,466,001  
       
​ ​ ​ ​ ​
​ ​ ​ ​ ​
       
(1)
We will finalize our preliminary estimates of fair value for these new reporting units once we finalize multi-year cash flow forecasts of such reporting units and conclude on fair value of each new reporting unit based on the combined weighting of both fair value multiples and discounted cash flow valuation techniques. To the extent final fair values of our new reporting units differ from our preliminary estimates, we will reassign goodwill amongst the new reporting units in a future period in which final information as of January 1, 2014 is available to complete the fair values and the corresponding allocation of goodwill amongst the new reporting units.
Schedule of changes in the carrying value of goodwill attributable to each reportable operating segment

 

 

 
   North American
Records and Information
Management
Business		   North American
Data
Management
Business		   International
Business		   Total
Consolidated		  

Gross Balance as of December 31, 2013

   $ 1,688,280   $ 422,070   $ 673,335   $ 2,783,685  

Non-deductible goodwill acquired during the year

     —     —     23,971     23,971  

Fair value and other adjustments(1)

     (13,213 )   (3,303 )   (2,612 )   (19,128 )

Currency effects

     (6,466 )   (1,617 )   5,574     (2,509 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Gross Balance as of March 31, 2014

   $ 1,668,601   $ 417,150   $ 700,268   $ 2,786,019  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Accumulated Amortization Balance as of December 31, 2013

   $ 208,729   $ 52,181   $ 59,423   $ 320,333  

Currency effects

     (321 )   (80 )   86     (315 )
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Accumulated Amortization Balance as of March 31, 2014

   $ 208,408   $ 52,101   $ 59,509   $ 320,018  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Net Balance as of December 31, 2013

   $ 1,479,551   $ 369,889   $ 613,912   $ 2,463,352  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Net Balance as of March 31, 2014

   $ 1,460,193   $ 365,049   $ 640,759   $ 2,466,001  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Accumulated Goodwill Impairment Balance as of December 31, 2013

   $ 85,909   $ —   $ 46,500   $ 132,409  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Accumulated Goodwill Impairment Balance as of March 31, 2014

   $ 85,909   $ —   $ 46,500   $ 132,409  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   
(1)
Total fair value and other adjustments primarily include $(18,212) in net adjustments to deferred income taxes and customer relationships, as well as $(916) of cash received related to certain 2013 acquisitions.
Components of amortizable intangible assets

 

 

 
   Gross Carrying
Amount		   Accumulated
Amortization		   Net Carrying
Amount		  

Customer Relationships and Acquisition Costs

   $ 907,801   $ (288,191 ) $ 619,610  

Core Technology(1)

     3,828     (3,591 )   237  

Trademarks and Non-Compete Agreements(1)

     6,342     (4,121 )   2,221  

Deferred Financing Costs

     56,532     (12,593 )   43,939  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 974,503   $ (308,496 ) $ 666,007  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               
(1)
Included in Other Assets, net in the accompanying Consolidated Balance Sheets.
Stock-based compensation expense for Employee Stock-Based Awards related to continuing operations

 

 

 
   Three Months
Ended
March 31,		  
 
   2013   2014  

Cost of sales (excluding depreciation and amortization)

   $ 70   $ 190  

Selling, general and administrative expenses

     5,640     6,951  
           
​ ​ ​ ​ ​ ​ ​ ​

Total stock-based compensation

   $ 5,710   $ 7,141  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           
Summary of the weighted average assumptions used for stock option grants

 

 

 
   Three Months Ended
March 31,		  
Weighted Average Assumptions
  2013   2014  

Expected volatility

     33.8 %   33.9 %

Risk-free interest rate

     1.13 %   2.06 %

Expected dividend yield

     3 %   4 %

Expected life

     6.3 years     6.8 years  
Summary of stock option activity

 

 

 
   Options   Weighted
Average
Exercise
Price		   Weighted
Average
Remaining
Contractual
Term		   Aggregate
Intrinsic
Value		  

Outstanding at December 31, 2013

     5,145,739   $ 24.09              

Granted

     525,268     30.70              

Exercised

     (136,656 )   20.63              

Forfeited

     (80,463 )   23.24              

Expired

     (59 )   25.31              
                         
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Outstanding at March 31, 2014

     5,453,829   $ 24.79     5.05   $ 19,635  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Options exercisable at March 31, 2014

     4,043,021   $ 23.99     4.15   $ 16,411  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Options expected to vest

     1,297,099   $ 27.06     7.69   $ 3,088  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   
Aggregate intrinsic value of stock options exercised

 

 

 
   Three Months
Ended
March 31,		  
 
   2013   2014  

Aggregate intrinsic value of stock options exercised

   $ 5,446   $ 977  
Summary of restricted stock and RSU activity

 

 

 
   Restricted
Stock and RSUs		   Weighted-
Average
Grant-Date
Fair Value		  

Non-vested at December 31, 2013

     1,435,230   $ 29.76  

Granted

     598,423     27.32  

Vested

     (438,353 )   31.60  

Forfeited

     (65,298 )   32.31  
             
​ ​ ​ ​ ​ ​ ​ ​

Non-vested at March 31, 2014

     1,530,002   $ 28.17  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           
Summary of Performance Unit (PU) activity

 

 

 
   Original
PU Awards		   PU Adjustment(1)   Total
PU Awards		   Weighted-
Average
Grant-Date
Fair Value		  

Non-vested at December 31, 2013

     334,548     (23,732 )   310,816   $ 33.18  

Granted

     173,260     (52,475 )   120,785     22.84  

Vested

     (136,801 )   (11,819 )   (148,620 )   27.12  

Forfeited

     (3,384 )   —     (3,384 )   34.27  
                     
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Non-vested at March 31, 2014

     367,623     (88,026 )   279,597   $ 31.92  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   
(1)
Represents an increase or decrease in the number of original PUs awarded based on either (a) the final performance criteria achievement at the end of the defined performance period of such PUs or (b) a change in estimated awards based on the forecasted performance against the predefined targets.
Calculation of basic and diluted net income (loss) per share attributable to the entity

 

 

 
   Three Months Ended March 31,  
 
   2013   2014  

Income (Loss) from continuing operations

   $ 18,350   $ 42,721  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

Total income (loss) from discontinued operations (see Note 10)

   $ 2,184   $ (612 )
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

Net income (loss) attributable to Iron Mountain Incorporated

   $ 19,386   $ 41,667  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

Weighted-average shares—basic

     190,213,000     191,879,000  

Effect of dilutive potential stock options

     1,395,106     682,801  

Effect of dilutive potential restricted stock, RSUs and PUs

     501,974     507,219  
           
​ ​ ​ ​ ​ ​ ​ ​

Weighted-average shares—diluted

     192,110,080     193,069,020  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

Earnings (Losses) per share—basic:

              

Income (Loss) from continuing operations

   $ 0.10   $ 0.22  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

Total income (loss) from discontinued operations (see Note 10)

   $ 0.01   $ (0.00 )
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

Net income (loss) attributable to Iron Mountain Incorporated—basic

   $ 0.10   $ 0.22  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

Earnings (Losses) per share—diluted:

              

Income (Loss) from continuing operations

   $ 0.10   $ 0.22  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

Total income (loss) from discontinued operations (see Note 10)

   $ 0.01   $ (0.00 )
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

Net income (loss) attributable to Iron Mountain Incorporated—diluted

   $ 0.10   $ 0.22  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

Antidilutive stock options, RSUs and PUs, excluded from the calculation

     260,298     1,380,962  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           
Assets and liabilities carried at fair value measured on a recurring basis

  •  

 

 
    
   Fair Value Measurements at
December 31, 2013 Using		  
Description
  Total Carrying
Value at
December 31,
2013		   Quoted prices
in active
markets
(Level 1)		   Significant other
observable
inputs
(Level 2)		   Significant
unobservable
inputs
(Level 3)		  

Money Market Funds(1)

   $ 33,860   $ —   $ 33,860   $ —  

Time Deposits(1)

     2,753     —     2,753     —  

Trading Securities

     13,386     12,785 (2)   601 (1)   —  

Derivative Assets(3)

     72     —     72     —  

Derivative Liabilities(3)

     5,592     —     5,592     —  


 

 
    
   Fair Value Measurements at
March 31, 2014 Using		  
Description
  Total Carrying
Value at
March 31,
2014		   Quoted prices
in active
markets
(Level 1)		   Significant other
observable
inputs
(Level 2)		   Significant
unobservable
inputs
(Level 3)		  

Money Market Funds(1)

   $ 37,018   $ —   $ 37,018   $ —  

Time Deposits(1)

     22,139     —     22,139     —  

Trading Securities

     13,515     12,971 (2)   544 (1)   —  

Derivative Assets(3)

     577     —     577     —  

Derivative Liabilities(3)

     1,822     —     1,822     —  
(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, Euro 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.
Schedule of accumulated other comprehensive items, net

 

 

 
   December 31,
2013		   March 31,
2014		  

Foreign currency translation adjustments

   $ (9,586 ) $ (7,909 )

Market value adjustments for securities, net of tax

     926     926  
           
​ ​ ​ ​ ​ ​ ​ ​

 

   $ (8,660 ) $ (6,983 )
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           
Other expense (income), net

 

 

 
   Three Months
Ended March 31,		  
 
   2013   2014  

Foreign currency transaction losses (gains), net

   $ 3,565   $ 6,438  

Other, net

     (826 )   (1,121 )
           
​ ​ ​ ​ ​ ​ ​ ​

 

   $ 2,739   $ 5,317  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​