Subsequent Events

3 Months Ended

Mar. 31, 2019

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

In April 2019, Switch, Inc. issued an aggregate of 22.3 million shares of the Company’s Class A common stock in connection with the redemptions of an equivalent number of Common Units of members of Switch, Ltd. and the corresponding cancellation of an equivalent number of shares of Class B common stock. The redemptions occurred pursuant to the terms of the Switch operating agreement entered into in connection with the Company’s IPO.

In April 2019, Switch, Ltd. also elected to repurchase 1.3 million of its outstanding Common Units for $13.6 million upon the exercise by certain members of their respective redemption right. Pursuant to this repurchase, Switch, Inc. canceled an equivalent number of shares of Class B common stock.

On April 8, 2019, Switch, Ltd. filed a complaint in the Eighth Judicial District of Nevada against the Public Utilities Commission of Nevada (the “PUCN”), its regulatory operation staff (the “Staff”), and its staff counsel, Tamara Cordova, in response to a regulatory petition filed by the Staff requesting the PUCN rule whether Switch is (i) a public utility, as defined by the Nevada statute, (ii) provides its services to the public at large, and (iii) charges its customers for electricity at a rate that is higher than the rate Switch pays for electricity at its facilities. Among other claims, Switch alleges it is not a public utility providing a monopoly utility service to customers subject to the regulatory control of the PUCN. Switch, Ltd. is seeking declaratory relief as well as other remedies. On April 15, 2019, Switch filed a writ of mandamus requesting the court prevent the PUCN from ruling under the regulatory petition.

In May 2019, Switch, Inc.’s Board of Directors declared a dividend of $0.0294 per share of Class A common stock, for a total estimated to be $2.3 million, to be paid on June 4, 2019 to holders of record as of May 22, 2019. Prior to the payment of this dividend, Switch, Ltd. will make a cash distribution to all holders of record of Common Units, including Switch, Inc., of $0.0294 per Common Unit, for a total estimated to be $7.2 million.