Part I. Financial ~~Statements~~Information

IRON MOUNTAIN INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEETS

(~~In Thousands, except Share and Per Share Data)~~IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) (UNAUDITED)

~~(Unaudited)~~


	SEPTEMBER 30, 2021		DECEMBER 31, 2020
ASSETS
Current Assets:
Cash and cash equivalents	$	161,439	$	205,063

Accounts receivable (less allowances of $60,214 and $56,981 as of September 30, 2021 and December 31, 2020, respectively)	884,348		859,344

Prepaid expenses and other	223,266		205,380

Total Current Assets	1,269,053		1,269,787
Property, Plant and Equipment:
Property, plant and equipment	8,503,171		8,246,337
Less—Accumulated depreciation	(3,914,553)		(3,743,894)
Property, Plant and Equipment, Net	4,588,618		4,502,443
Other Assets, Net:
Goodwill	4,472,641		4,557,609
Customer relationships, customer inducements and data center lease-based intangibles	1,230,330		1,326,977
Operating lease right-of-use assets	2,308,047		2,196,502
Other	365,706		295,949
Total Other Assets, Net	8,376,724		8,377,037
Total Assets	$	14,234,395	$	14,149,267
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of long-term debt	$	318,144	$	193,759
Accounts payable	324,210		359,863
Accrued expenses and other current liabilities (includes current portion of operating lease liabilities)	926,360		1,146,288
Deferred revenue	257,593		295,785

Total Current Liabilities	1,826,307		1,995,695
Long-term Debt, net of current portion	8,815,273		8,509,555
Long-term Operating Lease Liabilities, net of current portion	2,164,449		2,044,598
Other Long-term Liabilities	155,048		204,508
Deferred Income Taxes	236,782		198,377
Commitments and Contingencies	0		0
Redeemable Noncontrolling Interests	61,390		59,805
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 289,546,146 and 288,273,049 shares as of September 30, 2021 and December 31, 2020, respectively)	2,895		2,883
Additional paid-in capital	4,407,253		4,340,078
(Distributions in excess of earnings) Earnings in excess of distributions	(3,101,813)		(2,950,339)
Accumulated other comprehensive items, net	(334,453)		(255,893)
Total Iron Mountain Incorporated Stockholders' Equity	973,882		1,136,729
Noncontrolling Interests	1,264		—
Total Equity	975,146		1,136,729
Total Liabilities and Equity	$	14,234,395	$	14,149,267

September 30, 2020 December 31, 2019
ASSETS
Current Assets:
Cash and cash equivalents $ 151,972 $ 193,555
Accounts receivable (less allowances of $53,788 and $42,856 as of September 30, 2020 and December 31, 2019, respectively) (see Note 2.d.) 791,859 850,701
Prepaid expenses and other 190,194 192,083
Total Current Assets 1,134,025 1,236,339
Property, Plant and Equipment:
Property, plant and equipment 8,100,871 8,048,906
Less—Accumulated depreciation (3,641,804) (3,425,869)
Property, Plant and Equipment, Net 4,459,067 4,623,037
Other Assets, Net:
Goodwill 4,461,529 4,485,209
Customer relationships, customer inducements and data center lease-based intangibles 1,317,399 1,393,183
Operating lease right-of-use assets (see Note 2.e.) 1,963,019 1,869,101
Other 347,621 209,947
Total Other Assets, Net 8,089,568 7,957,440
Total Assets $ 13,682,660 $ 13,816,816
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of long-term debt $ 392,586 $ 389,013
Accounts payable 302,618 324,708
Accrued expenses and other current liabilities (includes current portion of operating lease liabilities; see Note 2.e.) 951,269 961,752
Deferred revenue 244,430 274,036
Total Current Liabilities 1,890,903 1,949,509
Long-term Debt, net of current portion 8,618,856 8,275,566
Long-term Operating Lease Liabilities, net of current portion (see Note 2.e.) 1,818,844 1,728,686
Other Long-term Liabilities 158,507 143,018
Deferred Income Taxes 194,638 188,128
Commitments and Contingencies (see Note 7)
Redeemable Noncontrolling Interests 63,666 67,682
Equity:
Iron Mountain Incorporated Stockholders' Equity:
Preferred stock (par value $0.01; authorized 10,000,000 shares; NaN issued and outstanding) 0 0
Common stock (par value $0.01; authorized 400,000,000 shares; issued and outstanding 288,162,966 and 287,299,645 shares as of September 30, 2020 and December 31, 2019, respectively) 2,882 2,873
Additional paid-in capital 4,335,799 4,298,566
(Distributions in excess of earnings) Earnings in excess of distributions (3,018,144) (2,574,896)
Accumulated other comprehensive items, net (383,178) (262,581)
Total Iron Mountain Incorporated Stockholders' Equity 937,359 1,463,962
Noncontrolling Interests (113) 265
Total Equity 937,246 1,464,227
Total Liabilities and Equity $ 13,682,660 $ 13,816,816

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

~~Table of Contents~~

~~IRON MOUNTAIN INCORPORATED~~

~~CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS~~

~~(In Thousands, except Per Share Data)~~

~~(Unaudited)~~

Three Months Ended
September 30,
2020 2019
Revenues:
Storage rental $ 696,294 $ 673,318
Service 340,353 388,906
Total Revenues 1,036,647 1,062,224
Operating Expenses:
Cost of sales (excluding depreciation and amortization) 434,505 449,372
Selling, general and administrative 232,095 237,151
Depreciation and amortization 157,252 157,561
Significant Acquisition Costs (see Note 2.o.) 0 3,950
Restructuring Charges (see Note 10) 48,371 0
(Gain) Loss on disposal/write-down of property, plant and equipment, net (see Note 2.l.) (75,840) (9,284)
Total Operating Expenses 796,383 838,750
Operating Income (Loss) 240,264 223,474
Interest Expense, Net (includes interest income of $2,476 and $1,558 for the three months ended September 30, 2020 and 2019, respectively) 104,303 106,677
Other Expense (Income), Net 83,465 (13,415)
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes 52,496 130,212
Provision (Benefit) for Income Taxes 13,934 21,928
Income (Loss) from Continuing Operations 38,562 108,284
Income (Loss) from Discontinued Operations, Net of Tax 0 0
Net Income (Loss) 38,562 108,284
Less: Net Income (Loss) Attributable to Noncontrolling Interests 168 609
Net Income (Loss) Attributable to Iron Mountain Incorporated $ 38,394 $ 107,675
Earnings (Losses) per Share—Basic:
Income (Loss) from Continuing Operations $ 0.13 $ 0.37
Total Income (Loss) from Discontinued Operations, Net of Tax $ 0 $ 0
Net Income (Loss) Attributable to Iron Mountain Incorporated $ 0.13 $ 0.37
Earnings (Losses) per Share—Diluted:
Income (Loss) from Continuing Operations $ 0.13 $ 0.37
Total Income (Loss) from Discontinued Operations, Net of Tax $ 0 $ 0
Net Income (Loss) Attributable to Iron Mountain Incorporated $ 0.13 $ 0.37
Weighted Average Common Shares Outstanding—Basic 288,403 287,152
Weighted Average Common Shares Outstanding—Diluted 288,811 287,691

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


2									IRON MOUNTAIN SEPTEMBER 30, 2021 FORM 10-Q

Table of Contents

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(~~In Thousands, except Per Share Data)~~IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)

~~(Unaudited)~~


	THREE MONTHS ENDED SEPTEMBER 30,
	2021		2020
Revenues:
Storage rental	$	718,614	$	696,294
Service	411,534		340,353
Total Revenues	1,130,148		1,036,647
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	481,663		434,505
Selling, general and administrative	241,596		232,095
Depreciation and amortization	174,818		157,252
Acquisition and Integration Costs	1,138		—
Restructuring Charges	50,432		48,371


(Gain) Loss on disposal/write-down of property, plant and equipment, net	(935)		(75,840)
Total Operating Expenses	948,712		796,383
Operating Income (Loss)	181,436		240,264
Interest Expense, Net (includes Interest Income of $2,160 and $2,476 for the three months ended September 30, 2021 and 2020, respectively)	103,809		104,303
Other (Income) Expense, Net	(18,501)		83,465
Net Income (Loss) Before Provision (Benefit) for Income Taxes	96,128		52,496
Provision (Benefit) for Income Taxes	28,017		13,934


Net Income (Loss)	68,111		38,562
Less: Net Income (Loss) Attributable to Noncontrolling Interests	428		168
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	67,683	$	38,394
Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated:


Basic	$	0.23	$	0.13



Diluted	$	0.23	$	0.13
Weighted Average Common Shares Outstanding—Basic	289,762		288,403
Weighted Average Common Shares Outstanding—Diluted	291,482		288,811

Nine Months Ended
September 30,
2020 2019
Revenues:
Storage rental $ 2,056,797 $ 2,005,580
Service 1,030,820 1,177,414
Total Revenues 3,087,617 3,182,994
Operating Expenses:
Cost of sales (excluding depreciation and amortization) 1,308,119 1,373,827
Selling, general and administrative 712,775 758,018
Depreciation and amortization 483,686 484,375
Significant Acquisition Costs (see Note 2.o.) 0 8,597
Restructuring Charges (see Note 10) 128,715 0
Intangible impairments (see Note 2.b.) 23,000 0
(Gain) Loss on disposal/write-down of property, plant and equipment, net (see Note 2.l.) (78,170) (17,087)
Total Operating Expenses 2,578,125 2,607,730
Operating Income (Loss) 509,492 575,264
Interest Expense, Net (includes interest income of $6,491 and $4,804 for the nine months ended September 30, 2020 and 2019, respectively) 313,408 314,427
Other Expense (Income), Net 66,439 (13,397)
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes 129,645 274,234
Provision (Benefit) for Income Taxes 33,304 43,127
Income (Loss) from Continuing Operations 96,341 231,107
Income (Loss) from Discontinued Operations, Net of Tax 0 104
Net Income (Loss) 96,341 231,211
Less: Net Income (Loss) Attributable to Noncontrolling Interests 1,058 1,534
Net Income (Loss) Attributable to Iron Mountain Incorporated $ 95,283 $ 229,677
Earnings (Losses) per Share—Basic:
Income (Loss) from Continuing Operations $ 0.33 $ 0.80
Total Income (Loss) from Discontinued Operations, Net of Tax $ 0 $ 0
Net Income (Loss) Attributable to Iron Mountain Incorporated $ 0.33 $ 0.80
Earnings (Losses) per Share—Diluted:
Income (Loss) from Continuing Operations $ 0.33 $ 0.80
Total Income (Loss) from Discontinued Operations, Net of Tax $ 0 $ 0
Net Income (Loss) Attributable to Iron Mountain Incorporated $ 0.33 $ 0.80
Weighted Average Common Shares Outstanding—Basic 288,105 286,869
Weighted Average Common Shares Outstanding—Diluted 288,471 287,555

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


IRON MOUNTAIN SEPTEMBER 30, 2021 FORM 10-Q									3

Table of Contents

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF ~~COMPREHENSIVE INCOME (LOSS)~~OPERATIONS

(~~In Thousands)~~IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)

~~(Unaudited)~~

Three Months Ended
September 30,
2020 2019
Net Income (Loss) $ 38,562 $ 108,284
Other Comprehensive Income (Loss):
Foreign Currency Translation Adjustment 44,883 (83,595)
Change in Fair Value of Derivative Instruments (184) (1,496)
Total Other Comprehensive Income (Loss) 44,699 (85,091)
Comprehensive Income (Loss) 83,261 23,193
Comprehensive Income (Loss) Attributable to Noncontrolling Interests 522 (100)
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated $ 82,739 $ 23,293

Nine Months Ended
September 30,
2020 2019
Net Income (Loss) $ 96,341 $ 231,211
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustment (109,742) (71,195)
Change in Fair Value of Derivative Instruments (11,507) (9,101)
Total Other Comprehensive (Loss) Income (121,249) (80,296)
Comprehensive (Loss) Income (24,908) 150,915
Comprehensive Income (Loss) Attributable to Noncontrolling Interests 406 1,777
Comprehensive (Loss) Income Attributable to Iron Mountain Incorporated $ (25,314) $ 149,138

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


	NINE MONTHS ENDED SEPTEMBER 30,
	2021		2020
Revenues:
Storage rental	$	2,144,942	$	2,056,797
Service	1,187,002		1,030,820
Total Revenues	3,331,944		3,087,617
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	1,408,151		1,308,119
Selling, general and administrative	760,098		712,775
Depreciation and amortization	507,145		483,686
Acquisition and Integration Costs	3,415		—
Restructuring Charges	129,686		128,715

Intangible impairments	—		23,000
(Gain) Loss on disposal/write-down of property, plant and equipment, net	(134,321)		(78,170)
Total Operating Expenses	2,674,174		2,578,125
Operating Income (Loss)	657,770		509,492
Interest Expense, Net (includes Interest Income of $5,858 and $6,491 for the nine months ended September 30, 2021 and 2020, respectively)	313,451		313,408
Other (Income) Expense, Net	(200,018)		66,439
Net Income (Loss) Before Provision (Benefit) for Income Taxes	544,337		129,645
Provision (Benefit) for Income Taxes	153,073		33,304


Net Income (Loss)	391,264		96,341
Less: Net Income (Loss) Attributable to Noncontrolling Interests	2,693		1,058
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	388,571	$	95,283
Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated:


Basic	$	1.34	$	0.33



Diluted	$	1.34	$	0.33
Weighted Average Common Shares Outstanding—Basic	289,255		288,105
Weighted Average Common Shares Outstanding—Diluted	290,697		288,471

~~Table of Contents~~

~~IRON MOUNTAIN INCORPORATED~~

~~CONDENSED CONSOLIDATED STATEMENTS OF EQUITY~~

~~(In Thousands, except Share Data)~~

~~(Unaudited)~~

Three Month Period Ended September 30, 2020
Iron Mountain Incorporated Stockholders' Equity
Common Stock Additional
Paid-in Capital (Distributions in Excess of Earnings) Earnings in Excess of Distributions Noncontrolling
Interests
Total Shares Amounts Accumulated
Other
Comprehensive
Items, Net Redeemable Noncontrolling Interests
Balance, June 30, 2020 $ 1,024,331 288,142,703 $ 2,881 $ 4,325,803 $ (2,876,861) $ (427,523) $ 31 $ 63,512
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation 9,997 20,263 1 9,996 — — — —
Parent cash dividends declared (see Note 8) (179,677) — — — (179,677) — — —
Foreign currency translation adjustment 44,529 — — — — 44,529 — 354
Change in fair value of derivative instruments (184) — — — — (184) — —
Net income (loss) 38,250 — — — 38,394 — (144) 312
Noncontrolling interests dividends — — — — — — — (512)
Balance, September 30, 2020 $ 937,246 288,162,966 $ 2,882 $ 4,335,799 $ (3,018,144) $ (383,178) $ (113) $ 63,666
Nine Month Period Ended September 30, 2020
Iron Mountain Incorporated Stockholders' Equity
Common Stock Additional
Paid-in Capital (Distributions in Excess of Earnings) Earnings in Excess of Distributions Noncontrolling
Interests
Total Shares Amounts Accumulated
Other
Comprehensive
Items, Net Redeemable Noncontrolling Interests
Balance, December 31, 2019 $ 1,464,227 287,299,645 $ 2,873 $ 4,298,566 $ (2,574,896) $ (262,581) $ 265 $ 67,682
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation 34,639 863,321 9 34,630 — — — —
Change in equity related to redeemable noncontrolling interests 2,603 — — 2,603 — — — (2,603)
Parent cash dividends declared
(see Note 8) (538,531) — — — (538,531) — — —
Foreign currency translation adjustment (109,090) — — — — (109,090) — (652)
Change in fair value of derivative instruments (11,507) — — — — (11,507) — —
Net income (loss) 94,905 — — — 95,283 — (378) 1,436
Noncontrolling interests dividends — — — — — — — (2,197)
Balance, September 30, 2020 $ 937,246 288,162,966 $ 2,882 $ 4,335,799 $ (3,018,144) $ (383,178) $ (113) $ 63,666

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


4									IRON MOUNTAIN SEPTEMBER 30, 2021 FORM 10-Q

Table of Contents

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF ~~EQUITY~~COMPREHENSIVE INCOME (LOSS)

(~~In Thousands, except Share Data)~~IN THOUSANDS) (UNAUDITED)

~~(Unaudited)~~


	THREE MONTHS ENDED SEPTEMBER 30,
	2021		2020
Net Income (Loss)	$	68,111	$	38,562
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustment	(91,263)		44,883
Change in Fair Value of Derivative Instruments	14,665		(184)
Total Other Comprehensive (Loss) Income	(76,598)		44,699
Comprehensive (Loss) Income	(8,487)		83,261
Comprehensive (Loss) Income Attributable to Noncontrolling Interests	(370)		522
Comprehensive (Loss) Income Attributable to Iron Mountain Incorporated	$	(8,117)	$	82,739

Three Month Period Ended September 30, 2019
Iron Mountain Incorporated Stockholders' Equity
Common Stock Additional
Paid-in Capital (Distributions in Excess of Earnings) Earnings in Excess of Distributions Noncontrolling
Interests
Total Shares Amounts Accumulated
Other
Comprehensive
Items, Net Redeemable Noncontrolling Interests
Balance, June 30, 2019 $ 1,658,981 287,061,769 $ 2,870 $ 4,281,584 $ (2,364,812) $ (261,821) $ 1,160 $ 73,113
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation 6,381 73,425 1 6,380 — — — —
Change in equity related to redeemable noncontrolling interests — — — — — — — (4,590)
Parent cash dividends declared (see Note 8) (176,665) — — — (176,665) — — —
Foreign currency translation adjustment (82,886) — — — — (82,886) — (709)
Change in fair value of derivative instruments (1,496) — — — — (1,496) — —
Net income (loss) 107,534 — — — 107,675 — (141) 750
Noncontrolling interests dividends — — — — — — — (465)
Balance, September 30, 2019 $ 1,511,849 287,135,194 $ 2,871 $ 4,287,964 $ (2,433,802) $ (346,203) $ 1,019 $ 68,099
Nine Month Period Ended September 30, 2019
Iron Mountain Incorporated Stockholders' Equity
Common Stock Additional
Paid-in Capital (Distributions in Excess of Earnings) Earnings in Excess of Distributions Noncontrolling
Interests
Total Shares Amounts Accumulated
Other
Comprehensive
Items, Net Redeemable Noncontrolling Interests
Balance, December 31, 2018 $ 1,862,463 286,321,009 $ 2,863 $ 4,263,348 $ (2,139,493) $ (265,664) $ 1,409 $ 70,532
Cumulative-effect adjustment for adoption of Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842), as amended ("ASU 2016-02") 5,781 — — — 5,781 — — —
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation 26,078 814,185 8 26,070 — — — —
Change in equity related to redeemable noncontrolling interests (1,454) — — (1,454) — — — (3,136)
Parent cash dividends declared (see Note 8) (529,767) — — — (529,767) — — —
Foreign currency translation adjustment (71,438) — — — — (71,438) — 243
Change in fair value of derivative instruments (9,101) — — — — (9,101) — —
Net income (loss) 229,287 — — — 229,677 — (390) 1,924
Noncontrolling interests dividends — — — — — — — (1,464)
Balance, September 30, 2019 $ 1,511,849 287,135,194 $ 2,871 $ 4,287,964 $ (2,433,802) $ (346,203) $ 1,019 $ 68,099


	NINE MONTHS ENDED SEPTEMBER 30,
	2021		2020
Net Income (Loss)	$	391,264	$	96,341
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustment	(115,075)		(109,742)
Change in Fair Value of Derivative Instruments	35,505		(11,507)
Total Other Comprehensive (Loss) Income	(79,570)		(121,249)
Comprehensive Income (Loss)	311,694		(24,908)
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	1,683		406
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$	310,011	$	(25,314)

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


IRON MOUNTAIN SEPTEMBER 30, 2021 FORM 10-Q									5

Table of Contents

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF ~~CASH FLOWS~~EQUITY

(~~In Thousands)~~IN THOUSANDS, EXCEPT SHARE DATA) (UNAUDITED)

~~(Unaudited)~~


THREE MONTHS ENDED SEPTEMBER 30, 2021
			IRON MOUNTAIN INCORPORATED STOCKHOLDERS' EQUITY
			COMMON STOCK			ADDITIONAL PAID-IN CAPITAL		(DISTRIBUTIONS IN EXCESS OF EARNINGS) EARNINGS IN EXCESS OF DISTRIBUTIONS		ACCUMULATED OTHER COMPREHENSIVE ITEMS, NET		NONCONTROLLING INTERESTS		REDEEMABLE NONCONTROLLING INTERESTS
	TOTAL		SHARES	AMOUNTS
Balance, June 30, 2021	$	1,147,742	289,458,768	$	2,895	$	4,392,396	$	(2,988,896)	$	(258,653)	$	—	$	64,660
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation	14,857		87,378	—		14,857		—		—		—		—
Change in equity related to redeemable noncontrolling interests	—		—	—		—		—		—		—		168
Parent cash dividends declared	(180,600)		—	—		—		(180,600)		—		—		—
Foreign currency translation adjustment	(90,512)		—	—		—		—		(90,465)		(47)		(751)
Change in fair value of derivative instruments	14,665		—	—		—		—		14,665		—		—
Net income (loss)	67,683		—	—		—		67,683		—		—		428

Noncontrolling interests dividends	—		—	—		—		—		—		—		(597)
Purchase of noncontrolling interests	1,311		—	—		—		—		—		1,311		—
Redemption of noncontrolling interests	—		—	—		—		—		—		—		(2,518)
Balance, September 30, 2021	$	975,146	289,546,146	$	2,895	$	4,407,253	$	(3,101,813)	$	(334,453)	$	1,264	$	61,390

NINE MONTHS ENDED SEPTEMBER 30, 2021
			IRON MOUNTAIN INCORPORATED STOCKHOLDERS' EQUITY
			COMMON STOCK			ADDITIONAL PAID-IN CAPITAL		(DISTRIBUTIONS IN EXCESS OF EARNINGS) EARNINGS IN EXCESS OF DISTRIBUTIONS		ACCUMULATED OTHER COMPREHENSIVE ITEMS, NET		NONCONTROLLING INTERESTS		REDEEMABLE NONCONTROLLING INTERESTS
	TOTAL		SHARES	AMOUNTS
Balance, December 31, 2020	$	1,136,729	288,273,049	$	2,883	$	4,340,078	$	(2,950,339)	$	(255,893)	$	—	$	59,805
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation	66,507		1,273,097	12		66,495		—		—		—		—
Change in equity related to redeemable noncontrolling interests	680		—	—		680		—		—		—		(512)
Parent cash dividends declared	(540,045)		—	—		—		(540,045)		—		—		—
Foreign currency translation adjustment	(114,112)		—	—		—		—		(114,065)		(47)		(963)
Change in fair value of derivative instruments	35,505		—	—		—		—		35,505		—		—
Net income (loss)	388,571		—	—		—		388,571		—		—		2,693
Noncontrolling interests equity contributions	—		—	—		—		—		—		—		2,200
Noncontrolling interests dividends	—		—	—		—		—		—		—		(1,882)
Purchase of noncontrolling interests	1,311		—	—		—		—		—		1,311		2,567
Redemption of noncontrolling interests	—		—	—		—		—		—		—		(2,518)
Balance, September 30, 2021	$	975,146	289,546,146	$	2,895	$	4,407,253	$	(3,101,813)	$	(334,453)	$	1,264	$	61,390

Nine Months Ended September 30,
2020 2019
Cash Flows from Operating Activities:
Net income (loss) $ 96,341 $ 231,211
Loss (income) from discontinued operations 0 (104)
Adjustments to reconcile net income (loss) to cash flows from operating activities:
Depreciation 334,780 336,485
Amortization (includes amortization of deferred financing costs and discounts of $13,150 and $12,286 for the nine months ended September 30, 2020 and 2019, respectively) 162,057 160,176
Intangible impairments (see Note 2.b.) 23,000 0
Revenue reduction associated with amortization of customer inducements and above- and below-market leases 7,612 10,417
Stock-based compensation expense 35,618 28,140
(Benefit) provision for deferred income taxes (3,074) 2,643
Loss on early extinguishment of debt 68,300 0
(Gain) loss on disposal/write-down of property, plant and equipment, net (78,170) (17,087)
Foreign currency transactions and other, net 4,043 (25,283)
(Increase) decrease in assets (10,219) (24,121)
(Decrease) increase in liabilities (13,070) (54,332)
Cash Flows from Operating Activities - Continuing Operations 627,218 648,145
Cash Flows from Operating Activities - Discontinued Operations 0 0
Cash Flows from Operating Activities 627,218 648,145
Cash Flows from Investing Activities:
Capital expenditures (309,162) (533,614)
Cash paid for acquisitions, net of cash acquired (118,581) (56,499)
Acquisition of customer relationships (3,529) (42,990)
Customer inducements (8,269) (7,429)
Contract fulfillment costs and third-party commissions (30,705) (63,090)
Investments in joint ventures (6,850) (19,222)
Proceeds from sales of property and equipment and other, net 116,965 82,148
Cash Flows from Investing Activities - Continuing Operations (360,131) (640,696)
Cash Flows from Investing Activities - Discontinued Operations 0 5,061
Cash Flows from Investing Activities (360,131) (635,635)
Cash Flows from Financing Activities:
Repayment of revolving credit facility, term loan facilities and other debt (7,354,790) (12,690,691)
Proceeds from revolving credit facility, term loan facilities and other debt 7,090,842 12,256,276
Early redemption of senior notes, including call premiums (2,942,554) 0
Net proceeds from sales of senior notes 3,465,000 987,500
Debt repayment and equity distribution to noncontrolling interests (2,197) (1,464)
Parent cash dividends (537,853) (528,908)
Net (payments) proceeds associated with employee stock-based awards (979) (2,059)
Payment of debt financing costs and other (24,643) (769)
Cash Flows from Financing Activities - Continuing Operations (307,174) 19,885
Cash Flows from Financing Activities - Discontinued Operations 0 0
Cash Flows from Financing Activities (307,174) 19,885
Effect of Exchange Rates on Cash and Cash Equivalents (1,496) (11,102)
(Decrease) increase in Cash and Cash Equivalents (41,583) 21,293
Cash and Cash Equivalents, including Restricted Cash, Beginning of Period 193,555 165,485
Cash and Cash Equivalents, including Restricted Cash, End of Period $ 151,972 $ 186,778
Supplemental Information:
Cash Paid for Interest $ 357,897 $ 342,139
Cash Paid for Income Taxes, Net $ 27,430 $ 54,446
Non-Cash Investing and Financing Activities:
Financing Leases (see Note 2.e.) $ 34,889 $ 20,699
Accrued Capital Expenditures $ 58,175 $ 78,329
Fair Value of Investments Applied to Acquisitions (see Note 4) $ 27,276 $ 0
Accrued Purchase Price and Other Holdbacks $ 0 $ 4,135
Dividends Payable $ 186,699 $ 182,859

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


6									IRON MOUNTAIN SEPTEMBER 30, 2021 FORM 10-Q

Table of Contents

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(IN THOUSANDS, EXCEPT SHARE DATA) (UNAUDITED)


THREE MONTHS ENDED SEPTEMBER 30, 2020
			IRON MOUNTAIN INCORPORATED STOCKHOLDERS' EQUITY
			COMMON STOCK			ADDITIONAL PAID-IN CAPITAL		(DISTRIBUTIONS IN EXCESS OF EARNINGS) EARNINGS IN EXCESS OF DISTRIBUTIONS		ACCUMULATED OTHER COMPREHENSIVE ITEMS, NET		NONCONTROLLING INTERESTS		REDEEMABLE NONCONTROLLING INTERESTS
	TOTAL		SHARES	AMOUNTS
Balance, June 30, 2020	$	1,024,331	288,142,703	$	2,881	$	4,325,803	$	(2,876,861)	$	(427,523)	$	31	$	63,512
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation	9,997		20,263	1		9,996		—		—		—		—

Parent cash dividends declared	(179,677)		—	—		—		(179,677)		—		—		—
Foreign currency translation adjustment	44,529		—	—		—		—		44,529		—		354
Change in fair value of derivative instruments	(184)		—	—		—		—		(184)		—		—
Net income (loss)	38,250		—	—		—		38,394		—		(144)		312
Noncontrolling interests dividends	—		—	—		—		—		—		—		(512)
Balance, September 30, 2020	$	937,246	288,162,966	$	2,882	$	4,335,799	$	(3,018,144)	$	(383,178)	$	(113)	$	63,666

NINE MONTHS ENDED SEPTEMBER 30, 2020
			IRON MOUNTAIN INCORPORATED STOCKHOLDERS' EQUITY
			COMMON STOCK			ADDITIONAL PAID-IN CAPITAL		(DISTRIBUTIONS IN EXCESS OF EARNINGS) EARNINGS IN EXCESS OF DISTRIBUTIONS		ACCUMULATED OTHER COMPREHENSIVE ITEMS, NET		NONCONTROLLING INTERESTS		REDEEMABLE NONCONTROLLING INTERESTS
	TOTAL		SHARES	AMOUNTS
Balance, December 31, 2019	$	1,464,227	287,299,645	$	2,873	$	4,298,566	$	(2,574,896)	$	(262,581)	$	265	$	67,682
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation	34,639		863,321	9		34,630		—		—		—		—
Change in equity related to redeemable noncontrolling interests	2,603		—	—		2,603		—		—		—		(2,603)
Parent cash dividends declared	(538,531)		—	—		—		(538,531)		—		—		—
Foreign currency translation adjustment	(109,090)		—	—		—		—		(109,090)		—		(652)
Change in fair value of derivative instruments	(11,507)		—	—		—		—		(11,507)		—		—
Net income (loss)	94,905		—	—		—		95,283		—		(378)		1,436
Noncontrolling interests dividends	—		—	—		—		—		—		—		(2,197)
Balance, September 30, 2020	$	937,246	288,162,966	$	2,882	$	4,335,799	$	(3,018,144)	$	(383,178)	$	(113)	$	63,666

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


IRON MOUNTAIN SEPTEMBER 30, 2021 FORM 10-Q									7

Table of Contents

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) (UNAUDITED)


	NINE MONTHS ENDED SEPTEMBER 30,
	2021		2020
Cash Flows from Operating Activities:
Net income (loss)	$	391,264	$	96,341


Adjustments to reconcile net income (loss) to cash flows from operating activities:
Depreciation	347,269		334,780
Amortization (includes amortization of deferred financing costs and discounts of $12,470 and $13,150 for the nine months ended September 30, 2021 and 2020, respectively)	172,346		162,057
Intangible impairments	—		23,000
Revenue reduction associated with amortization of customer inducements and above- and below-market leases	6,578		7,612
Stock-based compensation expense	46,852		35,618
Provision (benefit) for deferred income taxes	36,333		(3,074)
Loss on early extinguishment of debt	—		68,300
Gain on IPM Divestment (as defined in Note 4)	(180,569)		—
(Gain) loss on disposal/write-down of property, plant and equipment, net	(134,321)		(78,170)


Foreign currency transactions and other, net	(13,239)		4,043
(Increase) decrease in assets	(112,753)		(10,219)
(Decrease) increase in liabilities	(96,423)		(13,070)




Cash Flows from Operating Activities	463,337		627,218


Cash Flows from Investing Activities:
Capital expenditures	(418,976)		(309,162)
Cash paid for acquisitions, net of cash acquired	(203,752)		(118,581)

Acquisition of customer relationships	(4,800)		(3,529)
Customer inducements	(5,148)		(8,269)
Contract fulfillment costs and third-party commissions	(43,699)		(30,705)

Investments in joint ventures and other investments	(72,153)		(6,850)
Net proceeds from IPM Divestment	213,878		—
Proceeds from sales of property and equipment and other, net	214,865		116,965
Cash Flows from Investing Activities	(319,785)		(360,131)


Cash Flows from Financing Activities:
Repayment of revolving credit facility, term loan facilities and other debt	(2,622,555)		(7,354,790)
Proceeds from revolving credit facility, term loan facilities and other debt	3,037,476		7,090,842
Early redemption of senior notes, including call premiums	—		(2,942,554)
Net proceeds from sales of senior notes	—		3,465,000



Debt repayment and equity distribution to noncontrolling interests	(1,882)		(2,197)
Repurchase of noncontrolling interest	(75,000)		—
Parent cash dividends	(538,902)		(537,853)


Net proceeds (payments) associated with employee stock-based awards	19,655		(979)

Other, net	3,621		(24,643)
Cash Flows from Financing Activities	(177,587)		(307,174)


Effect of Exchange Rates on Cash and Cash Equivalents	(9,589)		(1,496)
(Decrease) increase in Cash and Cash Equivalents	(43,624)		(41,583)
Cash and Cash Equivalents, including Restricted Cash, Beginning of Period	205,063		193,555
Cash and Cash Equivalents, including Restricted Cash, End of Period	$	161,439	$	151,972
Supplemental Information:
Cash Paid for Interest	$	395,355	$	357,897
Cash Paid for Income Taxes, Net	$	96,174	$	27,430
Non-Cash Investing and Financing Activities:

Financing Leases	$	40,590	$	34,889
Accrued Capital Expenditures	$	60,418	$	58,175
Fair Value of Investments Applied to Acquisitions	$	—	$	27,276



Dividends Payable	$	189,010	$	186,699

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


8									IRON MOUNTAIN SEPTEMBER 30, 2021 FORM 10-Q

Table of Contents

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In ~~Thousands, Except Share~~thousands, except share and ~~Per Share Data)~~

per share data) (Unaudited)

1. ~~General~~

GENERAL

The unaudited condensed consolidated financial statements of Iron Mountain Incorporated, a Delaware corporation ~~("IMI"~~(“IMI”), and its subsidiaries ~~("we"~~(“we” or ~~"us"~~“us”), have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the ~~"SEC"~~“SEC”). Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America ~~("GAAP"~~(“GAAP”) have been omitted pursuant to those rules and regulations, but we believe that the disclosures included herein are adequate to make the information presented not misleading. The interim condensed consolidated financial statements are presented herein and, in the opinion of management, reflect all adjustments of a normal recurring nature necessary for a fair presentation. Interim results are not necessarily indicative of results for a full year.

The Condensed Consolidated Financial Statements and Notes thereto, which are included herein, should be read in conjunction with the Consolidated Financial Statements and Notes thereto for the year ended December 31, ~~2019~~2020 included in our Annual Report on Form 10-K filed with the SEC on February ~~13, 2020~~24, 2021 (our ~~"Annual Report"~~“Annual Report”).

We have been organized and have operated as a real estate investment trust for United States federal income tax purposes ~~("REIT"~~(“REIT”) beginning with our taxable year ended December 31, 2014.

In ~~January~~March 2020, the World Health Organization declared a novel strain of coronavirus ~~("COVID-19"~~(“COVID-19”) a pandemic. This resulted in U.S. federal, state and local and foreign governments and private entities mandating various restrictions, including travel restrictions, restrictions on public gatherings and stay-at-home orders and advisories. In response, we temporarily closed certain of our offices and facilities across the world and implemented certain travel restrictions for our employees. The preventative and protective actions that governments have ordered, or we or our customers have implemented, ~~as an organization,~~ have resulted in a period of reduced service operations and business disruption for us, our customers and other third parties with which we do business. ~~Currently, certain of the restrictions have been lifted; however, other restrictions still remain and the~~The broader impacts of the COVID-19 pandemic on our financial position, results of operations and cash flows, including impacts to the estimates ~~used throughout this Quarterly Report on Form 10-Q (this “Quarterly Report”),~~we use in the preparation of our financial statements, remain uncertain and difficult to predict as information continues to ~~rapidly~~ evolve, and the severity and duration of the pandemic remains unknown, as is our visibility of its effect on the markets we serve and our customers within those markets.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

~~2. Summary of Significant Accounting Policies~~

~~a. Cash, Cash Equivalents and Restricted Cash~~

A. CASH, CASH EQUIVALENTS AND RESTRICTED CASH

Cash and cash equivalents include cash on hand and cash invested in highly liquid short-term securities, which have remaining maturities at the date of purchase of less than 90 days. ~~Restricted~~Cash and cash ~~was less than $5,000~~equivalents are carried at ~~both September 30, 2020~~cost, which approximates fair value.

B. ACCOUNTS RECEIVABLE

We maintain an allowance for doubtful accounts and ~~December 31, 2019.~~

~~Table of Contents~~

~~IRON MOUNTAIN INCORPORATED~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(In Thousands, Except Share and Per Share Data)~~

~~(Unaudited)~~

~~2. Summary of Significant Accounting Policies (Continued)~~

~~b. Goodwill~~

Our reporting units as of December 31, 2019 are described in detail in Note 2.h. to Notes to Consolidated Financial Statements included in our Annual Report. The goodwill associated with acquisitions completed duringa credit memo reserve for estimated losses resulting from the ~~first nine months of 2020 (described in Note 4) has been incorporated into our reporting units as they existed as of December 31, 2019.~~

During the first quarter of 2020, we concluded that we had a triggering event related to our Fine Arts reporting unit, requiring us to perform an interim goodwill impairment test. The primary factor contributing to our conclusion was the expected impact of the COVID-19 pandemic to this particular business and its customers and revenue sources, which caused us to believe it was more likely than not that the carrying valuepotential inability of our Fine Arts reporting unit exceeded its fair value. During the first quarter of 2020, we performed an interim goodwill impairment test for our Fine Arts reporting unit utilizing a discounted cash flow model, with updated assumptions on future revenues, operating expenditurescustomers to make required payments and ~~capital expenditures. We concluded that the fair value of our Fine Arts reporting unit was less than its carrying value, and,~~ therefore, we recorded a $23,000 impairment charge on the goodwill associated with this reporting unit during the first quarter of 2020. Factors that may impact these assumptions include, but are not limited to: (i) our ability to maintain, or grow, storage rentalpotential disputes regarding billing and service ~~revenues in line with current expectations and (ii) our ability to manage our fixed and variable costs in line with potential future revenue declines.~~

~~During the second and third quarters of 2020, for each of our reporting units,~~ no factors were identified that would alter our interim goodwill impairment analysis performed during the first quarter of 2020, or change the conclusions reached at that time. Any material adverse changes to our businesses that negatively impact their fair values could result in future goodwill impairments.

~~The changes in the carrying value of goodwill attributable to each reportable operating segment for the nine months ended September 30, 2020 are as follows:~~

Global RIM Business Global Data Center Business Corporate and Other Business Total
Consolidated
Goodwill balance, net of accumulated amortization as of December 31, 2019 $ 3,942,901 $ 424,568 $ 117,740 $ 4,485,209
Non-deductible goodwill acquired during the period 51,319 0 0 51,319
Goodwill impairment 0 0 (23,000) (23,000)
Fair value and other adjustments (4,131) 0 403 (3,728)
Currency effects (54,428) 6,026 131 (48,271)
Goodwill balance, net accumulated amortization as of
September 30, 2020 $ 3,935,661 $ 430,594 $ 95,274 $ 4,461,529
Accumulated goodwill impairment balance as of
September 30, 2020 $ 132,409 $ 0 $ 26,011 $ 158,420

~~Table of Contents~~

~~IRON MOUNTAIN INCORPORATED~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(In Thousands, Except Share and Per Share Data)~~

~~(Unaudited)~~

~~2. Summary of Significant Accounting Policies (Continued)~~

~~c. Revenues~~

Contract fulfillment costs consist of the costs of the initial intake of customer records into physical storage and capitalized commissions asset (collectively, "Contract Fulfillment Costs"), which as of September 30, 2020 and December 31, 2019, are as follows:

September 30, 2020 December 31, 2019
Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount
Contract Fulfillment Costs $ 123,795 $ (57,538) $ 66,257 $ 109,232 $ (50,757) $ 58,475

~~Deferred revenue liabilities are reflected in our Condensed Consolidated Balance Sheets as follows:~~

Description September 30, 2020 December 31, 2019
Deferred revenue - Current $ 244,430 $ 274,036
Deferred revenue - Long-term 35,187 36,029

~~Data Center Lessor Considerations~~

Our Global Data Center Business features storage rental provided to customers at contractually specified rates over a fixed contractual period, which are accounted for in accordance with ASU 2016-02. Storage rental revenue, including revenue associated with power and connectivity, associated with our Global Data Center Business for the three and nine months ended September 30, 2020 and 2019 are as follows:

Three Months Ended
September 30, Nine Months Ended
September 30,
2020 2019 2020 2019
Storage rental revenue(1) $ 68,416 $ 62,001 $ 196,823 $ 182,301

~~(1)~~Revenue associated with power and connectivity included within storage rental revenue was $12,033 and $34,986 for the three and nine months ended September 30, 2020, respectively, and $12,001 and $31,031 for the three and nine months ended September 30, 2019, respectively.

~~Table of Contents~~

~~IRON MOUNTAIN INCORPORATED~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(In Thousands, Except Share and Per Share Data)~~

~~(Unaudited)~~

~~2. Summary of Significant Accounting Policies (Continued)~~

~~d. Accounts Receivable~~

~~In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-13,~~ ~~Financial Instruments-Credit Losses-Measurement of Credit Losses on Financial Instruments~~ ~~(“ASU 2016-13”). ASU 2016-13 changes how entities will measure credit losses on most financialassets. The standard eliminates the probable initial recognition of estimated losses and provides a forward-lookingexpected credit loss model for accounts receivable, loans and other financial instruments.~~

On January 1, 2020 we adopted ASU 2016-13 on a modified retrospective basis for all financial assets measured at amortized cost. The adoption of ASU 2016-13 did not result in a material impact on our consolidated financial statements. We now calculate and monitor our allowance considering future potential economic and macroeconomic conditions and reasonable and supportable forecasts for expected future collectability of our outstanding receivables, in addition to considering our past loss experience, current and prior trends in our aged receivables and credit memo activity. Our considerations when calculating our allowance include, but are not limited to, the following: the location of our businesses, the composition of our customer base, our product and service lines, potential future economic unrest, and potential future macroeconomic factors, including natural disasters and any impacts associated with the COVID-19 pandemic. Continued adjustments will be made should there be any material change to reasonable and supportable forecasts that may impact our likelihood of collection, as it becomes evident. Our highly diverse global customer base, with no single customer accounting for more than 1% of revenue during the nine months ended September 30, 2020, limits our exposure to concentration of credit risk.

issues. The rollforward of the allowance for doubtful accounts and credit memo reserves for the nine months ended September 30, ~~2020~~2021 is as follows:

Balance atas of December 31, ~~2019~~2020

~~42,856~~56,981

Credit memos charged to revenue

29,996

~~42,713~~

Allowance for bad debts charged to expense

~~25,715~~

~~Deductions and other(1)~~16,371

~~(57,496)~~

Deductions and other(1)

(43,134)

Balance atas of September 30, ~~2020~~2021

~~53,788~~60,214

(1)Primarily consists of the issuance of credit memos, the write-off of accounts receivable, allowances associated with businesses acquired and the impact associated with currency translation adjustments.


IRON MOUNTAIN SEPTEMBER 30, 2021 FORM 10-Q									9

Table of Contents

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS ~~(Continued)~~(CONTINUED)

(In ~~Thousands, Except Share~~thousands, except share and ~~Per Share Data)~~

per share data) (Unaudited)

2. ~~Summary of Significant Accounting Policies (Continued)~~SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

~~e. Leases~~

C. LEASES

We lease facilities for certain ~~of our~~ warehouses, data centers and office space. We also have land leases, including those on which certain ~~of our~~ facilities are located. Operating and financing lease right-of-use assets and lease liabilities as of September 30, ~~2020~~2021 and December 31, ~~2019~~2020 are as follows:

Description September 30, 2020 December 31, 2019
Assets:
Operating lease right-of-use assets $ 1,963,019 $ 1,869,101
Financing lease right-of-use assets, net of accumulated depreciation(1) 306,640 327,215
Liabilities:
Current
Operating lease liabilities $ 236,019 $ 223,249
Financing lease liabilities(1) 42,620 46,582
Long-term
Operating lease liabilities 1,818,844 1,728,686
Financing lease liabilities(1) 311,387 320,600


DESCRIPTION	SEPTEMBER 30, 2021		DECEMBER 31, 2020
Assets:
Operating lease right-of-use assets	$	2,308,047	$	2,196,502
Financing lease right-of-use assets, net of accumulated depreciation(1)	307,032		310,534
Liabilities:
Current
Operating lease liabilities	$	257,884	$	250,239
Financing lease liabilities(1)	42,442		43,149
Long-term
Operating lease liabilities	$	2,164,449	$	2,044,598
Financing lease liabilities(1)	321,682		323,162

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

The components of the lease expense for the three and nine months ended September 30, ~~2020~~2021 and ~~2019~~2020 are as follows:


		Three Months Ended September 30,				Nine Months Ended September 30,					THREE MONTHS ENDED SEPTEMBER 30,				NINE MONTHS ENDED SEPTEMBER 30,
Description		2020		2019		2020		2019
Operating lease cost(1)		$	122,737	$	114,727	$	365,303	$	343,282
DESCRIPTION										DESCRIPTION	2021		2020		2021		2020
Operating lease cost(1)										Operating lease cost(1)	$	140,551	$	122,737	$	408,312	$	365,303
Financing lease cost:	Financing lease cost:									Financing lease cost:
Depreciation of financing lease right-of-use assets	Depreciation of financing lease right-of-use assets	$	12,973	$	14,679	$	38,495	$	45,950	Depreciation of financing lease right-of-use assets	$	14,006	$	12,973	$	39,062	$	38,495
Interest expense for financing lease liabilities	Interest expense for financing lease liabilities	4,891		4,905		14,664		15,972		Interest expense for financing lease liabilities	5,055		4,891		14,940		14,664

(1)Operating lease cost, the majority of which is included in Cost of sales, includes variable lease costs of $28,835 and $86,422 for the three and nine months ended September 30, 2021, respectively, and $27,486 and $82,287 for the three and nine months ended September 30, 2020, ~~respectively, and $26,121 and $78,712 for the three and nine months ended September 30, 2019,~~ respectively.

Other information: Supplemental cash flow information relating to our leases for the nine months ended September 30, ~~2020~~2021 and ~~2019~~2020 is as follows:


		Nine Months Ended September 30,					NINE MONTHS ENDED SEPTEMBER 30,
Cash paid for amounts included in measurement of lease liabilities:		2020		2019
CASH PAID FOR AMOUNTS INCLUDED IN MEASUREMENT OF LEASE LIABILITIES:						CASH PAID FOR AMOUNTS INCLUDED IN MEASUREMENT OF LEASE LIABILITIES:	2021		2020
Operating cash flows used in operating leases	Operating cash flows used in operating leases	$	266,619	$	252,277	Operating cash flows used in operating leases	$	291,535	$	266,619

Operating cash flows used in financing leases (interest)	Operating cash flows used in financing leases (interest)	14,664		15,972		Operating cash flows used in financing leases (interest)	14,940		14,664
Financing cash flows used in financing leases	Financing cash flows used in financing leases	36,008		44,808		Financing cash flows used in financing leases	35,360		36,008

Operating Lease Non-cash items:
NON-CASH ITEMS:						NON-CASH ITEMS:
Operating lease modifications and reassessments	Operating lease modifications and reassessments	$	89,727	$	42,418	Operating lease modifications and reassessments	$	103,158	$	89,727
New operating leases (including acquisitions)		173,635		117,193
New operating leases (including acquisitions and sale-leaseback transactions)						New operating leases (including acquisitions and sale-leaseback transactions)	240,822		173,635

Table of Contents

Part I. Financial Information

~~IRON MOUNTAIN INCORPORATED~~

~~Item~~ITEM 2. ~~Management's Discussion and Analysis of Financial Condition and Results of Operations~~MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations for the three and nine months ended September 30, ~~2020~~2021 should be read in conjunction with our Condensed Consolidated Financial Statements and Notes thereto for the three and nine months ended September 30, ~~2020,~~2021, included herein, and our Consolidated Financial Statements and Notes thereto for the year ended December 31, ~~2019,~~2020, included in our Annual Report on Form 10-K filed with the United States Securities and Exchange Commission ~~("SEC"~~(“SEC”) on February ~~13, 2020~~24, 2021 (our ~~"Annual Report"~~“Annual Report”).

FORWARD-LOOKING STATEMENTS

We have made statements in this Quarterly Report on Form 10-Q (this ~~"Quarterly Report"~~“Quarterly Report”) that constitute ~~"forward-looking~~“forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 and other 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) expectations and assumptions regarding the ~~possible~~ impact ~~from~~of the COVID-19 (as defined below) pandemic on us and our customers, including on our businesses, financial position, results of operations and cash flows, (2) commitment to future dividend payments, (3) expected change in volume of records stored with us, (4) expected organic revenue growth, including 2021 consolidated organic storage rental revenue growth rate and ~~the goodwill associated with~~consolidated organic total revenue growth rate, (5) expectations that profits will increase in our ~~reporting units, (2)~~growth portfolio, including our higher-growth markets, and that our growth portfolio will become a larger part of our business over time, (6) expectations related to our revenue management programs and continuous improvement initiatives, (7) expectations related to monetizing our owned industrial real estate assets as part of our capital recycling program, (8) expected ability to identify and complete acquisitions and other investments, including joint ventures, and drive returns on invested capital, (9) anticipated capital expenditures, (10) expected benefits, costs and actions related to, and timing of, Project Summit (as defined ~~and discussed~~ below), ~~(3) anticipated capital expenditures~~ and ~~possible funding sources, (4) expected total consolidated revenue declines in 2020 and (5)~~(11) other forward-looking statements related to our business, results of operations and financial condition. These forward-looking statements are subject to various known and unknown risks, uncertainties and other factors, and you should not rely upon them except as statements of our present intentions and of our present expectations, which may or may not occur. When we use words such as ~~"believes," "expects," "anticipates," "estimates"~~“believes,” “expects,” “anticipates,” “estimates”, “plans", “intends" 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. In addition, important factors that could cause actual results to differ from expectations include, among others:

•the severity and duration of the COVID-19 pandemic and its effects on the global economy, including its effects on us, the markets we serve and our customers and the third parties with whom we do business within those markets;

•our ability to execute on Project Summit and the potential impacts of Project Summit on our ability to retain and recruit ~~employees and execute on our strategic growth plan;~~employees;

•our ability to remain qualified for taxation as a real estate investment trust for United States federal income tax purposes ~~("REIT"~~(“REIT”);

•changes in customer preferences and demand for our storage and information management services, including as a result of the ~~adoption of~~shift from paper and tape storage to alternative technologies ~~and shifts to storage of data through non-paper based technologies;~~that require less physical space;

•our ability or inability to execute our strategic growth plan, including our ability to invest according to plan, incorporate new digital information technologies into our offerings, achieve satisfactory returns on new product offerings, continue our revenue management, expand internationally, complete acquisitions on satisfactory terms, integrate acquired companies efficiently and grow our business through joint ventures;

•changes in the amount of our capital expenditures;

•our ability to raise debt or equity capital and changes in the cost of our debt;

•the ~~cost~~costs of complying with, and our ability to comply with, laws, regulations and customer demands, including those relating to data security and privacy issues, as well as fire and safety and environmental standards;

•the impact of litigation or disputes that may arise in connection with incidents in which we fail to protect our ~~customers'~~customers’ information or our internal records or information technology (“IT”) systems and the impact of such incidents on our reputation and ability to compete;

•changes in the price for our storage and information management services relative to the cost of providing such storage and information management services;

•changes in the political and economic environments in the countries in which our international subsidiaries operate and changes in the global political ~~climate;~~climate, particularly as we consolidate operations and move records and data across borders;


30									IRON MOUNTAIN SEPTEMBER 30, 2021 FORM 10-Q

Table of Contents

Part I. Financial Information

•our ability to comply with our existing debt obligations and restrictions in our debt instruments;

•the impact of service interruptions or equipment damage and the cost of power on our data center operations;

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

•~~the performance~~failures in our adoption of ~~business partners upon whom we depend for technical assistance or management expertise;~~new IT systems;

•unexpected events, including those resulting from climate change, could disrupt our operations and adversely affect our reputation and results of operations;

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

•the other risks described in our periodic reports filed with the SEC, including under the caption ~~"Risk Factors"~~“Risk Factors” in Part I, Item 1A of our Annual ~~Report and in Part II, Item 1A of our~~ ~~Quarterly Report on Form 10-Q for the quarter ended March 31, 2020~~ ~~(the "March 31, 2020~~ ~~Quarterly Report")~~.Report.

Except as required by law, we undertake no obligation to update any forward-looking statements appearing in this report.


IRON MOUNTAIN SEPTEMBER 30, 2021 FORM 10-Q									31

Table of Contents

Part I. Financial Information

~~Overview~~

OVERVIEW

The following discussions set forth, for the periods indicated, management's discussion and analysis of financial condition and results of operations. Significant trends and changes are discussed for the three and nine months ended September 30, ~~2020~~2021 within each section. Trends and changes that are consistent ~~with~~for both the three and nine month periods are not repeated and are discussed on a year to date basis only.


COVID-19 In March 2020, the World Health Organization declared a novel strain of coronavirus (“COVID-19”) a pandemic. The preventative and protective actions that governments have ordered, or we or our customers have implemented, have resulted in a period of reduced service operations and business disruption for us, our customers and other third parties with which we do business. While we have broad geographic and customer diversification with operations in 63 countries and no single customer accounting for a significant portion of our revenue during the nine months ended September 30, 2021, COVID-19 is a global pandemic impacting numerous industries and geographies. While our service operations have increased from the reductions we experienced during the peak of the COVID-19 pandemic, future service revenues remain uncertain and will be dependent on the severity of the COVID-19 pandemic, including new variants of COVID-19 that may emerge.

~~COVID-19~~PROJECT SUMMIT

In January 2020, the World Health Organization declared a novel strain of coronavirus ("COVID-19") a pandemic. This resulted in U.S. federal, state and local and foreign governments and private entities mandating various restrictions, including travel restrictions, restrictions on public gatherings, stay-at-home orders and advisories. In response, we temporarily closed certain of our offices and facilities across the world and implemented certain travel restrictions for our employees. The preventative and protective actions that governments have ordered, or we have implemented as an organization, have resulted in a period of reduced service operations and business disruption for us, our customers and other third parties with which we do business. While we have broad geographic and customer diversification with operations in approximately 50 countries, and no single customer accounting for more than 1% of our revenue during the nine months ended September 30, 2020, COVID-19 is a global pandemic impacting numerous industries and geographies. While we do not currently believe that the implications of the COVID-19 pandemic have had a material adverse impact on our ability to collect our accounts receivable, global economic conditions related to the COVID-19 pandemic may have a material adverse effect on our customers, which could impact our future ability to collect our accounts receivable. We continue to monitor the credit worthiness of our customers and customer payment trends, as well as the related impact on our liquidity.

We have taken certain actions during the nine months ended September 30, 2020 to manage our costs and capital expenditures, including, but not limited to: (i) the termination of nearly all of our temporary and contract workers; (ii) reductions in our full-time and part-time work forces; (iii) temporary furloughs, reduced hours or other temporary reduction measures; (iv) the deferral of certain previously planned non-essential capital investments and (v) the implementation of a temporary freeze on future acquisitions. We can provide no assurance that the cost savings measures we have taken, or may take in future periods, will be sufficient to offset any future service level declines, and we continue to evaluate the need for these cost saving measures and additional cost saving measures as additional information regarding the COVID-19 pandemic and the related economic downturn become known. We have incurred certain costs due to the COVID-19 pandemic which are direct, incremental and not expected to recur once the pandemic ends, which include the purchase of personal protective equipment for our employees and incremental cleaning costs of our facilities, among other direct costs. We have excluded these costs in calculating our various non-GAAP measures (as described below).

~~Project Summit~~


Compelling Adjusted EBITDA Benefits			Implementation Details

~$375M Expected annual run-rate benefits realized exiting 2021			•Project Summit began in Q4 2019 and is expected to be substantially complete by the end of 2021 •Cost to implement is estimated to be ~$450M

In October 2019, we announced our global program designed to better position us for future growth and achievement of our strategic objectives ("(“Project ~~Summit"~~Summit”). ~~Since Project Summit was announced,~~As a result of the program, we expect to reduce the number of positions at vice president and above by approximately 45%. The total program is expected to reduce our total managerial and administrative workforce by approximately 700 positions by the end of 2021. We have also reduced our services and operations workforce. As of September 30, 2021, we have ~~identified additional opportunities to streamline~~completed approximately 95% of our business and operations, as well as accelerated the timing of certain opportunities previously identified. Such opportunities include leveraging new technology solutions to enable us to modernize our service delivery model and more efficiently utilize our fleet, labor and real estate, which has broadened the initial scope of Project Summit.planned workforce reductions.

The activities associated with Project Summit began in the fourth quarter of 2019 and are expected to be substantially complete by the end of 2021. We expect the total program benefits associated with Project Summit to be fully realized exiting 2021. ~~Including the expanded scope of Project Summit described above, we estimate~~We expect that Project Summit will improve annual Adjusted EBITDA (as defined below) by approximately $375.0 million exiting 2021. ~~In addition, we expect Project Summit to improve annual Adjusted EBITDA by approximately $165.0 million in 2020.~~ We will continue to evaluate our overall operating model, as well as various opportunities and initiatives, including those associated with real estate consolidation, system implementation and process changes, which could result in the identification and implementation of additional actions associated with Project Summit and incremental costs and benefits.


Exiting 2021						$375 million (expected)


32									IRON MOUNTAIN SEPTEMBER 30, 2021 FORM 10-Q

Table of Contents

Part I. Financial Information

~~Including the expanded scope of Project Summit described above, we~~

We estimate that the implementation of Project Summit will result in total ~~costs~~operating expenditures (“Restructuring Charges”) of approximately $450.0 million ~~of which we expect to incur approximately $200.0 million in 2020. These costs include (1) operating expenditures ("Restructuring Charges")~~ that primarily consist of: ~~(i)~~(1) employee severance costs; ~~(ii)~~(2) internal costs associated with the development and implementation of Project Summit initiatives; ~~(iii)~~(3) professional fees, primarily related to third party consultants who are assisting with the design and execution of various initiatives as well as project management activities and ~~(iv)~~(4) system implementation and data conversion ~~costs, and (2) capital expenditures.~~costs. The following table presents ~~(in thousands) the~~ total ~~costs~~Restructuring Charges related to Project Summit ~~comprised of Restructuring Charges (primarily~~primarily related to employee severance costs, internal costs associated with the development and implementation of Project Summit initiatives and professional ~~fees) and capital expenditures for both the three and nine months ended September 30, 2020 and~~fees from the inception of Project Summit through September 30, ~~2020.~~2021, and for the three and nine months ended September 30, 2021:

For the Three
Months Ended September 30, 2020 For the Nine
Months Ended September 30, 2020 From the inception of Project Summit through
September 30, 2020
Restructuring Charges $ 48,371 $ 128,715 $ 177,312
Capital Expenditures associated with Project Summit 2,567 4,672 4,672
Total $ 50,938 $ 133,387 $ 181,984

TOTAL

From the Inception of Project Summit through September 30, 2021

$372,679

$372.7 million

For the Three Months Ended September 30, 2021

$50,432

$50.4 million

For the Nine Months Ended September 30, 2021

$129,686

$129.7 million

We have also incurred approximately $6.6 million and $16.6 million in capital expenditures related to Project Summit during the three and nine months ended September 30, 2021 and approximately $26.7 million from the inception of Project Summit through September 30, 2021.

See Note 1011 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for more information on the Restructuring Charges.

DIVESTMENTS

~~During the fourth quarter of 2019,~~On June 7, 2021, as a result of the realignment of our global managerial structure and changes to our internal financial reporting associated with Project Summit, we reassessed the composition of our reportable operating segments and reporting units, as discusseddisclosed in Note ~~2.h.~~4 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report, we sold our ~~Annual Report.~~Intellectual Property Management ("IPM") business, also known as our technology escrow services business, which we predominantly operated in the United States, for total gross consideration of approximately $216.6 million (the “IPM Divestment”). As ~~a result of these changes, previously reported segment information has been restated to conform to the current presentation.~~

~~Change in Presentation~~

~~We have historically classified our Significant Acquisition Costs (as defined~~described in Note ~~2.x.~~4 to Notes to Condensed Consolidated Financial Statements included in ~~our Annual Report)~~this Quarterly Report, the IPM Divestment does not meet the criteria to be reported as components of Selling, general and administrative expenses and Cost of sales. Beginning in the fourth quarter of 2019, we present Significant Acquisition Costs as its own line item within Operating Expensesdiscontinued operations in our ~~Condensed Consolidated Statements~~condensed consolidated financial statements. Our IPM business represented approximately $0.0 million and $14.2 million of ~~Operations. The prior periods have been conformed to this presentation.~~

~~All Significant Acquisition Costs were incurred by December 31, 2019. Significant Acquisition Costs~~total revenues and approximately $0.0 million and $6.8 million of total net income for the three and nine months ended September 30, ~~2019 were~~2021, respectively. Our IPM business represented approximately ~~$4.0~~$8.2 million and ~~$8.6~~$24.7 million of total revenues and approximately $4.4 million and $14.1 million of total net income for the three and nine months ended September 30, 2020, respectively.

CHANGES IMPACTING COMPARABILITY WITH PRIOR YEAR

During the fourth quarter of 2020, we made changes to the definitions of the following non-GAAP measures: Adjusted EBITDA, Adjusted EPS, FFO (Nareit) and FFO (Normalized) (each as defined below). These changes were implemented to align our definitions more closely with our peers. All prior periods have been recast to conform to these changes.

~~Non-GAAP Measures~~


IRON MOUNTAIN SEPTEMBER 30, 2021 FORM 10-Q									33

Table of Contents

Part I. Financial Information

GENERAL

RESULTS OF OPERATIONS - KEY TRENDS

•In spite of the COVID-19 pandemic, we have experienced relatively steady volume in our Global RIM Business segment, with organic storage rental revenue growth driven primarily by revenue management. We expect organic storage rental revenue growth to benefit from revenue management and volume, which we expect will be flat to slightly positive when compared to the prior year. We expect low single digit organic storage rental revenue growth for the remainder of 2021.

~~Adjusted~~•Our organic service revenue growth is primarily due to increases in our service activity, particularly in regions where governments have lifted or eased restrictions on our customers’ non-essential business operations. While our service operations have increased from the reductions we experienced during the peak of the COVID-19 pandemic, future service revenues remain uncertain and will be dependent on the severity of the COVID-19 pandemic, including new variants of COVID-19 that may emerge.

Cost of sales (excluding depreciation and amortization) and Selling, general and administrative expenses for the nine months ended September 30, 2021 consists of the following:


COST OF SALES						SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

NON-GAAP MEASURES

ADJUSTED EBITDA

We define Adjusted EBITDA ~~is defined~~ as net income (loss) ~~from continuing operations~~ before interest expense, net, provision (benefit) for income taxes, depreciation and amortization (inclusive of our share of Adjusted EBITDA from our unconsolidated joint ventures), and ~~also excludes~~excluding certain items ~~that~~ we do not believe ~~are not~~to be indicative of our core operating results, specifically: (1) (gain) loss on disposal/write-down of property, plant and equipment, net (including real estate); (2) intangible impairments; (3) other expense (income), net (which includes foreign currency transaction (gains) losses, net, and debt extinguishment expense); (4) Significant Acquisition Costs; (5) Restructuring Charges; and (6) COVID-19 Costs (as defined below).



EXCLUDED
•Acquisition and Integration Costs (as defined below)						•Other (income) expense, net
•Restructuring Charges						•Stock-based compensation expense
•Intangible impairments						•COVID-19 Costs (as defined below)
•(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate)

Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenues. We use multiples of current or projected Adjusted EBITDA in conjunction with our discounted cash flow models to determine our estimated overall enterprise valuation and to evaluate acquisition targets. We believe Adjusted EBITDA and Adjusted EBITDA Margin provide our current and potential investors with relevant and useful information regarding our ability to generate cash flows 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. We also show Adjusted EBITDA and Adjusted EBITDA Margin for each of our reportable operating segments under “Results of Operations – Segment Analysis” below.


34									IRON MOUNTAIN SEPTEMBER 30, 2021 FORM 10-Q

Table of Contents

Part I. Financial Information

Adjusted EBITDA excludes both 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 EBITDA 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 EBITDA and Adjusted EBITDA Margin should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with accounting principles generally accepted in the United States of America ~~("GAAP"~~(“GAAP”), such as operating income, ~~income (loss) from continuing operations,~~ net income (loss) or cash flows from operating activities ~~from continuing operations~~ (as determined in accordance with GAAP).

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (IN THOUSANDS):


	THREE MONTHS ENDED SEPTEMBER 30,				NINE MONTHS ENDED SEPTEMBER 30,
	2021		2020		2021		2020
Net Income (Loss)	$	68,111	$	38,562	$	391,264	$	96,341
Add/(Deduct):
Interest expense, net	103,809		104,303		313,451		313,408
Provision (benefit) for income taxes	28,017		13,934		153,073		33,304
Depreciation and amortization	174,818		157,252		507,145		483,686
Acquisition and Integration Costs(1)	1,138		—		3,415		—
Restructuring Charges	50,432		48,371		129,686		128,715
Intangible impairments	—		—		—		23,000
(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate)	(935)		(75,840)		(134,321)		(78,170)
Other (income) expense, net, excluding our share of losses (gains) from our unconsolidated joint ventures	(21,517)		81,190		(209,001)		59,398
Stock-based compensation expense(2)	12,644		8,065		45,913		32,056
COVID-19 Costs(3)	—		—		—		9,285
Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures	1,252		175		3,340		450
Adjusted EBITDA	$	417,769	$	376,012	$	1,203,965	$	1,101,473

(1) Represent operating expenditures directly associated with the closing and integration activities of our business acquisitions that have closed, or are highly probable of closing, and include (i) advisory, legal and professional fees to complete business acquisitions and (ii) costs to integrate acquired businesses into our existing operations, including move, severance, facility upgrade and system integration costs (collectively, "Acquisition and Integration Costs"). Acquisition and Integration Costs do not include costs associated with the formation of joint ventures or costs associated with the acquisition of customer relationships.

~~Reconciliation of Income (Loss) from Continuing Operations~~(2) Stock-based compensation expense related to ~~Adjusted EBITDA (in thousands):~~

Three Months Ended
September 30, Nine Months Ended
September 30,
2020 2019 2020 2019
Income (Loss) from Continuing Operations $ 38,562 $ 108,284 $ 96,341 $ 231,107
Add/(Deduct):
Provision (Benefit) for Income Taxes 13,934 21,928 33,304 43,127
Other Expense (Income), Net 83,465 (13,415) 66,439 (13,397)
Interest Expense, Net 104,303 106,677 313,408 314,427
(Gain) Loss on disposal/write-down of property, plant and equipment, net (75,840) (9,284) (78,170) (17,087)
Depreciation and amortization 157,252 157,561 483,686 484,375
Significant Acquisition Costs — 3,950 — 8,597
Restructuring Charges 48,371 — 128,715 —
COVID-19 Costs(1) — — 9,285 —
Intangible impairments — — 23,000 —
Adjusted EBITDA $ 370,047 $ 375,701 $ 1,076,008 $ 1,051,149

Project Summit is included within Restructuring Charges for the three and nine months ended September 30, 2021 and 2020.

~~(1)~~(3) Costs that are incremental and directly attributable to the COVID-19 pandemic which are not expected to recur once the pandemic ends ("COVID-19 Costs"). These costs include the purchase of personal protective equipment for our employees and incremental cleaning costs of our facilities, among other direct costs.


IRON MOUNTAIN SEPTEMBER 30, 2021 FORM 10-Q									35

Table of Contents

Part I. Financial Information

ADJUSTED EPS

We define Adjusted EPS

~~Adjusted EPS is defined~~ as reported earnings per share fully diluted from ~~continuing operations excluding: (1) (gain) loss on disposal/write-down of property, plant and equipment,~~ net (including real estate); (2) intangible impairments; (3) other expense (income), net (which includes foreign currency transaction (gains) losses, net, and debt extinguishment expense); (4) Significant Acquisition Costs; (5) Restructuring Charges; (6) COVID-19 Costs; and (7) the tax impact of reconciling items and discrete tax items. Adjusted EPS includes income (loss) attributable to ~~noncontrolling interests.~~ Iron Mountain Incorporated (inclusive of our share of adjusted losses (gains) from our unconsolidated joint ventures) and excluding certain items, specifically:



EXCLUDED
•Acquisition and Integration Costs •Restructuring Charges •Intangible impairments •(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate)						•Other (income) expense, net •Stock-based compensation expense •COVID-19 Costs •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 is of value to our current and potential investors when comparing our results from past, present and future periods.

RECONCILIATION OF REPORTED EPS—FULLY DILUTED FROM NET INCOME (LOSS) ATTRIBUTABLE TO IRON MOUNTAIN INCORPORATED TO ADJUSTED EPS—FULLY DILUTED FROM NET INCOME (LOSS) ATTRIBUTABLE TO IRON MOUNTAIN INCORPORATED:

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

Three Months Ended
September 30, Nine Months Ended
September 30,
2020 2019 2020 2019
Reported EPS—Fully Diluted from Continuing Operations $ 0.13 $ 0.37 $ 0.33 $ 0.80
Add/(Deduct):
Income (Loss) Attributable to Noncontrolling Interests — — — 0.01
Other Expense (Income), Net 0.29 (0.05) 0.23 (0.05)
(Gain) Loss on disposal/write-down of property, plant and equipment, net (0.26) (0.03) (0.27) (0.06)
Significant Acquisition Costs — 0.01 — 0.03
Restructuring Charges 0.17 — 0.45 —
COVID-19 Costs — — 0.03 —
Intangible impairments — — 0.08 —
Tax Impact of Reconciling Items and Discrete Tax Items(1) (0.01) — (0.05) (0.01)
Adjusted EPS—Fully Diluted from Continuing Operations(2) $ 0.31 $ 0.32 $ 0.80 $ 0.71


	THREE MONTHS ENDED SEPTEMBER 30,				NINE MONTHS ENDED SEPTEMBER 30,
	2021		2020		2021		2020
Reported EPS—Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated	$	0.23	$	0.13	$	1.34	$	0.33
Add/(Deduct):
Acquisition and Integration Costs	—		—		0.01		—
Restructuring Charges	0.17		0.17		0.45		0.45
Intangible impairments	—		—		—		0.08
(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate)	(0.01)		(0.26)		(0.46)		(0.27)
Other (income) expense, net, excluding our share of losses (gains) from our unconsolidated joint ventures	(0.07)		0.28		(0.72)		0.21
Stock-based compensation expense	0.04		0.03		0.16		0.11
COVID-19 Costs	—		—		—		0.03
Tax impact of reconciling items and discrete tax items(1)	0.02		(0.02)		0.31		(0.06)
Income (Loss) Attributable to Noncontrolling Interests	—		—		0.01		—
Adjusted EPS—Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated(2)	$	0.40	$	0.33	$	1.09	$	0.88

(1)The difference between our effective tax rates and our structural tax rate (or adjusted effective tax rates) for the three and nine months ended September 30, ~~2020~~2021 and ~~2019~~2020 is primarily due to (i) the reconciling items above, which impact our reported net income (loss) ~~from continuing operations~~ before ~~provision (benefit) for income taxes but have an insignificant impact on our reported~~ provision (benefit) for income taxes and (ii) other discrete tax items. Our structural tax rate for purposes of the calculation of Adjusted EPS for the three and nine months ended September 30, 2021 and 2020 was 16.5% and ~~2019 was 16.8% and 18.6%~~16.3%, respectively.

(2)Columns may not foot due to rounding.


36									IRON MOUNTAIN SEPTEMBER 30, 2021 FORM 10-Q

Table of Contents

Part I. Financial Information

FFO ~~(Nareit) and~~(NAREIT) AND FFO ~~(Normalized)~~

(NORMALIZED)

Funds from operations (“FFO”) is defined by the National Association of Real Estate Investment Trusts ~~("Nareit"~~(“Nareit”) ~~and us~~ as net income (loss) excluding depreciation on real estate assets, losses and gains on sale of real estate, net of tax, and amortization of data center leased-based intangibles ("and adjusting for our share of reconciling items from our unconsolidated joint ventures from FFO (“FFO (Nareit)"”). FFO (Nareit) does not give effect to real estate depreciation because these amounts are computed, under GAAP, to allocate the cost of a property over its useful life. Because values for well-maintained real estate assets have historically increased or decreased based upon prevailing market conditions, we believe that FFO (Nareit) provides investors with a clearer view of our operating performance. Our most directly comparable GAAP measure to FFO (Nareit) is net income (loss).

Although Nareit has published a definition of FFO, ~~modifications to~~we modify FFO (Nareit) ~~are~~, as is common among REITs ~~as companies seek~~seeking to provide financial measures that most meaningfully reflect their particular ~~business.~~business (“FFO (Normalized)”). Our definition of FFO (Normalized) excludes certain items included in FFO (Nareit) that we believe are not indicative of our core operating results, specifically:



EXCLUDED
•Acquisition and Integration Costs •Restructuring Charges •Intangible impairments •(Gain) loss on disposal/write-down of property, plant and equipment, net (excluding real estate) •Other (income) expense, net						•Stock-based compensation expense •COVID-19 Costs •Real estate financing lease depreciation •Tax impact of reconciling items and discrete tax items

RECONCILIATION OF NET INCOME (LOSS) TO FFO (NAREIT) AND FFO (NORMALIZED) (IN THOUSANDS):


	THREE MONTHS ENDED SEPTEMBER 30,				NINE MONTHS ENDED SEPTEMBER 30,
	2021		2020		2021		2020
Net Income (Loss)	$	68,111	$	38,562	$	391,264	$	96,341
Add/(Deduct):
Real estate depreciation	79,463		72,019		230,294		224,325
Loss (gain) on sale of real estate, net of tax	748		(75,880)		(106,033)		(77,461)
Data center lease-based intangible assets amortization	10,458		10,441		31,423		32,173

FFO (Nareit)	158,780		45,142		546,948		275,378
Add/(Deduct):
Acquisition and Integration Costs	1,138		—		3,415		—
Restructuring Charges	50,432		48,371		129,686		128,715
Intangible impairments	—		—		—		23,000
(Gain) loss on disposal/write-down of property, plant and equipment, net (excluding real estate)	(1,668)		40		(2,890)		(359)
Other (income) expense, net, excluding our share of losses (gains) from our unconsolidated joint ventures(1)	(21,517)		81,190		(209,001)		59,398
Stock-based compensation expense	12,644		8,065		45,913		32,056
COVID-19 Costs	—		—		—		9,285
Real estate financing lease depreciation	3,740		3,501		10,791		10,095
Tax impact of reconciling items and discrete tax items(2)	5,304		(4,648)		65,120		(16,464)

Our share of FFO (Normalized) reconciling items from our unconsolidated joint ventures	(17)		(1)		(30)		(31)
FFO (Normalized)	$	208,836	$	181,660	$	589,952	$	521,073

(1) ~~(gain) loss on disposal/write-down of property, plant and equipment (excluding real estate), net; (2) intangible impairments; (3) other expense (income), net (which includes~~Includes foreign currency transaction (gains) losses, net and ~~debt extinguishment expense); (4) real estate financing lease depreciation; (5) Significant Acquisition Costs; (6) Restructuring Charges; (7) COVID-19 Costs; (8)~~other, net. See Note 2.m. to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding the ~~tax impact~~components of ~~reconciling items and discrete tax items; (9)~~Other (income) ~~loss from discontinued operations, net of tax; and (10) (gain) loss on sale of discontinued operations, net of tax.~~

~~Table of Contents~~

~~Reconciliation of Net Income (Loss) to FFO (Nareit) and FFO (Normalized) (in thousands):~~

Three Months Ended
September 30, Nine Months Ended
September 30,
2020 2019 2020 2019
Net Income (Loss) $ 38,562 $ 108,284 $ 96,341 $ 231,211
Add/(Deduct):
Real Estate Depreciation 72,019 72,939 224,325 220,179
Gains on Sale of Real Estate, Net of Tax (75,880) (9,740) (77,461) (40,252)
Data Center Lease-Based Intangible Assets Amortization 10,441 11,356 32,173 35,337
FFO (Nareit) 45,142 182,839 275,378 446,475
Add/(Deduct):
Loss (Gain) on disposal/write-down of property, plant and equipment (excluding real estate), net 40 369 (359) 28,558
Other Expense (Income), Net(1) 83,465 (13,415) 66,439 (13,397)
Real Estate Financing Lease Depreciation 3,501 3,115 10,095 9,732
Significant Acquisition Costs — 3,950 — 8,597
Restructuring Charges 48,371 — 128,715 —
COVID-19 Costs — — 9,285 —
Intangible impairments — — 23,000 —
Tax Impact of Reconciling Items and Discrete Tax Items(2) (4,314) 1,283 (13,959) (9,202)
(Income) Loss from Discontinued Operations, Net of Tax(3) — — — (104)
FFO (Normalized) $ 176,205 $ 178,141 $ 498,594 $ 470,659

~~(1)~~Includes (i) foreign currency transaction losses (gains), net of $29.6 million and $(6.3) million for the three and nine months ended September 30, 2020, respectively, and $(18.3) million and $(19.9) million for the three and nine months ended September 30, 2019, respectively and (ii) debt extinguishment expense, ~~of $51.3 million and $68.3 million for the three and nine months ended September 30, 2020, respectively.~~net.

(2)Represents the tax impact of (i) the reconciling items above, which impact our reported net income (loss) ~~from continuing operations~~ before ~~provision (benefit) for income taxes but have an insignificant impact on our reported~~ provision (benefit) for income taxes and (ii) other discrete tax items. Discrete tax items resulted in a provision (benefit) ~~provision~~ for income taxes of ~~$(3.8)~~$5.0 million and ~~$(1.6)~~$19.4 million for the three and nine months ended September 30, 2021, respectively, and $(3.9) million and $(2.7) million for the three and nine months ended September 30, 2020, ~~respectively, and $1.0 million and $(5.5) million for the three and nine months ended September 30, 2019,~~ respectively.

~~(3)Net of a de minimis tax benefit for the nine months ended September 30, 2019.~~


IRON MOUNTAIN SEPTEMBER 30, 2021 FORM 10-Q									37

Table of Contents

Part I. Financial Information

~~Critical Accounting Policies~~

CRITICAL ACCOUNTING ESTIMATES

Our discussion and analysis of our financial condition and results of operations are based upon our Condensed 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 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~~estimates include the following, which are listed in no particular order:

•Revenue Recognition

•Accounting for Acquisitions

•Impairment of Tangible and Intangible Assets

•Income Taxes

Further detail regarding our critical accounting ~~policies~~estimates can be found in ~~"Item~~“Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report, and the Consolidated Financial Statements and the Notes included ~~therein and should be read in conjunction with the disclosure below which addresses updates in light of the COVID-19 pandemic.~~

~~Impairment of Tangible and Intangible Assets~~

~~Goodwill and other indefinite-lived intangible assets not subject to amortization: Our reporting units as of~~therein. We have determined that no material changes concerning our critical accounting estimates have occurred since December 31, ~~2019 are described in detail in Note 2.h. to Notes to Consolidated Financial Statements included in our Annual Report. The goodwill associated with acquisitions completed during the first~~ 2020.

RESULTS OF OPERATIONS

COMPARISON OF THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2021 TO THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2020 (IN THOUSANDS):


	THREE MONTHS ENDED SEPTEMBER 30,						DOLLAR CHANGE		PERCENTAGE CHANGE
	2021			2020
Revenues	$	1,130,148		$	1,036,647		$	93,501	9.0	%
Operating Expenses	948,712			796,383			152,329		19.1	%
Operating Income	181,436			240,264			(58,828)		(24.5)	%
Other Expenses, Net	113,325			201,702			(88,377)		(43.8)	%


Net Income (Loss)	68,111			38,562			29,549		76.6	%
Net Income (Loss) Attributable to Noncontrolling Interests	428			168			260		154.8	%
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	67,683		$	38,394		$	29,289	76.3	%
Adjusted EBITDA(1)	$	417,769		$	376,012		$	41,757	11.1	%
Adjusted EBITDA Margin(1)	37.0		%	36.3		%


	NINE MONTHS ENDED SEPTEMBER 30,						DOLLAR CHANGE		PERCENTAGE CHANGE
	2021			2020
Revenues	$	3,331,944		$	3,087,617		$	244,327	7.9	%
Operating Expenses	2,674,174			2,578,125			96,049		3.7	%
Operating Income	657,770			509,492			148,278		29.1	%
Other Expenses, Net	266,506			413,151			(146,645)		(35.5)	%


Net Income (Loss)	391,264			96,341			294,923		306.1	%
Net Income (Loss) Attributable to Noncontrolling Interests	2,693			1,058			1,635		154.5	%
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	388,571		$	95,283		$	293,288	307.8	%
Adjusted EBITDA(1)	$	1,203,965		$	1,101,473		$	102,492	9.3	%
Adjusted EBITDA Margin(1)	36.1		%	35.7		%

(1)~~nine~~ ~~months of 2020 (which are described in Note 4 to Notes to Condensed Consolidated Financial Statements included~~See “Non-GAAP Measures—Adjusted EBITDA” in this Quarterly ~~Report) has been incorporated into our reporting units as they existed as~~Report for the definitions of ~~December 31, 2019.~~

~~During the first quarter~~Adjusted EBITDA and Adjusted EBITDA Margin, reconciliation of ~~2020,~~Net Income (Loss) to Adjusted EBITDA and a discussion of why we ~~concluded that we had a triggering event related~~believe these non-GAAP measures provide relevant and useful information to our Fine Arts reporting unit, requiring us to perform an interim goodwill impairment test. The primary factor contributing to our conclusion was the expected impact of the COVID-19 pandemic to this particular businesscurrent and its customers and revenue sources, which caused us to believe it was more likely than not that the carrying value of our Fine Arts reporting unit exceeded its fair value. During the first quarter of 2020, we performed an interim goodwill impairment test for our Fine Arts reporting unit utilizing a discounted cash flow model, with updated assumptions on future revenues, operating expenditures and capital expenditures. We concluded that the fair value of the Fine Arts reporting unit was less than its carrying value, primarily due to near-term revenue declines that are unable to be fully mitigated by the cost reduction measures we have taken. Therefore, we recorded a $23.0 million impairment charge on the goodwill associated with this reporting unit during the first quarter of 2020. As disclosed in our Annual Report, our Global Data Center reporting unit had an estimated fair value that exceeded its carrying value by less than 20%. At March 31, 2020, we determined we did not have a triggering event requiring an interim impairment test on the goodwill associated with our Global Data Center reporting unit. During the second and third quarters of 2020, for each of our reporting units, potential investors.~~no factors were identified that would alter our interim goodwill impairment analysis performed during the first quarter of 2020, or change the conclusions reached at that time.~~


38									IRON MOUNTAIN SEPTEMBER 30, 2021 FORM 10-Q

Table of Contents

Part I. Financial Information

Reporting unit valuations have generally been determined using a combined approach based on the present value of future cash flows (the “Discounted Cash Flow Model”) and market multiples. There are inherent uncertainties and judgments involved when determining the fair value of our reporting units for purposes of our annual impairment testing or upon a triggering event. The success of each of these businesses and the achievement of certain key assumptions developed by management and used in the Discounted Cash Flow Model are contingent upon various factors, which may be impacted by the economic effects of the COVID-19 pandemic. Such factors include, but are not limited to: (i) our ability to maintain, or grow, storage rental and service revenues in line with current expectations and (ii) our ability to manage our fixed and variable costs in line with potential future revenue declines. These factors are incremental to those previously outlined in our Annual Report, which included, but were not limited to: (i) achieving growth from existing customers, (ii) sales to new customers, (iii) increased market penetration and (iv) accurately timing the capital investments related to expansions. In addition, the discount rates utilized in our valuation models could be impacted by changes in the underlying interest rates and risk premiums which could also result in future goodwill impairments. However, the duration and severity of the COVID-19 pandemic, as well as the related economic impact on both our business and the businesses of our customers, remain uncertain as of the filing of this Quarterly Report. As such, the current assumptions we used in determining the fair values of our reporting units may materially change as we gain additional visibility into the impact to our business and our customers’ businesses. If our reporting units are not able to meet the assumptions we used in the Discounted Cash Flow Model, or there are any future adverse market conditions that are not currently known or are more severe than we currently expect, including relating to the COVID-19 pandemic, it could potentially lead to a fair value that is less than the carrying value in any one of our reporting units and cause future goodwill impairments.

~~Recent Accounting Pronouncements~~

~~See Note 2.n. to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for a description of recently adopted accounting pronouncements.~~

~~Table of Contents~~

~~Results of Operations~~

~~Comparison of the three and nine months ended September 30, 2020 to the three and nine months ended September 30, 2019 (in thousands):~~

Three Months Ended
September 30,
Dollar
Change Percentage
Change
2020 2019
Revenues $ 1,036,647 $ 1,062,224 $ (25,577) (2.4) %
Operating Expenses 796,383 838,750 (42,367) (5.1) %
Operating Income 240,264 223,474 16,790 7.5 %
Other Expenses, Net 201,702 115,190 86,512 75.1 %
Income (Loss) from Continuing Operations 38,562 108,284 (69,722) (64.4) %
Income (Loss) from Discontinued Operations, Net of Tax — — — — %
Net Income (Loss) 38,562 108,284 (69,722) (64.4) %
Net Income (Loss) Attributable to Noncontrolling Interests 168 609 (441) (72.4) %
Net Income (Loss) Attributable to Iron Mountain Incorporated $ 38,394 $ 107,675 $ (69,281) (64.3) %
Adjusted EBITDA $ 370,047 $ 375,701 $ (5,654) (1.5) %
Adjusted EBITDA Margin 35.7 % 35.4 %

Nine Months Ended
September 30,
Dollar
Change Percentage
Change
2020 2019
Revenues $ 3,087,617 $ 3,182,994 $ (95,377) (3.0) %
Operating Expenses 2,578,125 2,607,730 (29,605) (1.1) %
Operating Income 509,492 575,264 (65,772) (11.4) %
Other Expenses, Net 413,151 344,157 68,994 20.0 %
Income (Loss) from Continuing Operations 96,341 231,107 (134,766) (58.3) %
Income (Loss) from Discontinued Operations, Net of Tax — 104 (104) (100.0) %
Net Income (Loss) 96,341 231,211 (134,870) (58.3) %
Net Income (Loss) Attributable to Noncontrolling Interests 1,058 1,534 (476) (31.0) %
Net Income (Loss) Attributable to Iron Mountain Incorporated $ 95,283 $ 229,677 $ (134,394) (58.5) %
Adjusted EBITDA $ 1,076,008 $ 1,051,149 $ 24,859 2.4 %
Adjusted EBITDA Margin 34.8 % 33.0 %

~~Table of Contents~~

REVENUES

Consolidated revenues consist of the following (in thousands):

Three Months Ended
September 30, Percentage Change
Dollar
Change Actual Constant
Currency(1) Organic
Growth(2) Impact of Acquisitions
2020 2019
Storage Rental $ 696,294 $ 673,318 $ 22,976 3.4 % 3.8 % 2.5 % 1.3 %
Service 340,353 388,906 (48,553) (12.5) % (12.2) % (13.5) % 1.3 %
Total Revenues $ 1,036,647 $ 1,062,224 $ (25,577) (2.4) % (2.1) % (3.4) % 1.3 %


	THREE MONTHS ENDED SEPTEMBER 30,						PERCENTAGE CHANGE
	2021		2020		DOLLAR CHANGE		ACTUAL		CONSTANT CURRENCY(1)		ORGANIC GROWTH(2)		IMPACT OF ACQUISITIONS
Storage Rental	$	718,614	$	696,294	$	22,320	3.2	%	2.2	%	2.3	%	(0.1)	%
Service	411,534		340,353		71,181		20.9	%	19.7	%	17.7	%	2.0	%
Total Revenues	$	1,130,148	$	1,036,647	$	93,501	9.0	%	7.9	%	7.4	%	0.5	%


	NINE MONTHS ENDED SEPTEMBER 30,						PERCENTAGE CHANGE
	2021		2020		DOLLAR CHANGE		ACTUAL		CONSTANT CURRENCY(1)		ORGANIC GROWTH(2)		IMPACT OF ACQUISITIONS
Storage Rental	$	2,144,942	$	2,056,797	$	88,145	4.3	%	2.2	%	2.2	%	—	%
Service	1,187,002		1,030,820		156,182		15.2	%	12.7	%	11.6	%	1.1	%
Total Revenues	$	3,331,944	$	3,087,617	$	244,327	7.9	%	5.7	%	5.4	%	0.3	%

Nine Months Ended
September 30, Percentage Change
Dollar
Change Actual Constant
Currency(1) Organic
Growth(2) Impact of Acquisitions
2020 2019
Storage Rental $ 2,056,797 $ 2,005,580 $ 51,217 2.6 % 4.2 % 2.6 % 1.6 %
Service 1,030,820 1,177,414 (146,594) (12.5) % (11.1) % (13.0) % 1.9 %
Total Revenues $ 3,087,617 $ 3,182,994 $ (95,377) (3.0) % (1.5) % (3.2) % 1.7 %

(1)Constant currency growth rates, which are a non-GAAP measure, are calculated by translating the ~~2019~~2020 results at the ~~2020~~2021 average exchange rates.

(2)Our organic revenue growth rate, which is a non-GAAP measure, represents the year-over-year growth rate of our revenues excluding the impact of business acquisitions, divestitures and foreign currency exchange rate fluctuations. Our organic revenue growth rate includes the impact of acquisitions of customer relationships.

~~Total Revenues~~

TOTAL REVENUES

For the nine months ended September 30, ~~2020,~~2021, the ~~decrease~~increase in reported consolidated revenue was driven by ~~declines in reported service revenue, partially offset by~~ reported storage rental revenue growth and reported service revenue growth. Foreign currency exchange rate fluctuations ~~decreased~~increased our reported consolidated revenue growth rate for the nine months ended September 30, ~~2020~~2021 by ~~1.5%~~2.2% compared to the prior year period. ~~We expect low single digit total consolidated revenue declines for the full year 2020.~~

~~Storage Rental Revenues~~

STORAGE RENTAL REVENUES AND SERVICE REVENUES

Primary factors influencing the change in reported consolidated storage rental revenue and reported service revenues for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020 include the following:



STORAGE RENTAL REVENUES						•organic storage rental revenue growth driven by increased volume ~~growth~~ in faster growing markets and our Global Data Center Business segment and revenue management; •a 2.4% increase in total global volume (excluding acquisitions, total global volume increased 0.3%); and •an increase of $41.1 million due to foreign currency exchange rate fluctuations.


SERVICE REVENUES						•an increase in service activity levels, particularly in regions where governments have lifted or eased COVID-19 related restrictions on our customers' non-essential business operations; •organic service revenue growth reflecting increased service activity levels; and •an increase of $22.3 million due to foreign currency exchange rate fluctuations.

•~~a 2.1% increase in global records management net volume due to acquisitions (excluding acquisitions, global records management net volume decreased 1.2%); and~~

•~~a decrease of $30.9 million due to foreign currency exchange rate fluctuations.~~

~~Service Revenues~~

~~Primary factors influencing the change in reported consolidated service revenue for the nine months ended September 30, 2020 include the following:~~

•a decrease in service activity as a result of the COVID-19 pandemic in the second quarter and, to a lesser extent, the third quarter of 2020, particularly in regions where governments have imposed restrictions on non-essential business operations;

•~~organic service revenue declines reflecting lower service activity levels; and~~

•~~a decrease of $18.0 million due to foreign currency exchange rate fluctuations.~~

The severity of future service level declines is uncertain and is dependent on the duration and severity of the COVID-19 pandemic, the resulting governmental and business actions and the duration and strength of any ensuing economic recovery that may follow, specifically within the markets in which we operate and among our customers.


IRON MOUNTAIN SEPTEMBER 30, 2021 FORM 10-Q									39

Table of Contents

Part I. Financial Information

OPERATING EXPENSES

~~Cost of Sales~~

COST OF SALES

Consolidated Cost of sales (excluding depreciation and amortization) consists of the following expenses (in thousands):

Three Months Ended
September 30, Percentage Change % of
Consolidated
Revenues Percentage
Change
(Favorable)/
Unfavorable
Dollar
Change Actual Constant
Currency
2020 2019 2020 2019
Labor $ 183,878 $ 200,471 $ (16,593) (8.3) % (7.4) % 17.7 % 18.9 % (1.2) %
Facilities 179,031 171,700 7,331 4.3 % 4.5 % 17.3 % 16.2 % 1.1 %
Transportation 30,890 40,137 (9,247) (23.0) % (23.4) % 3.0 % 3.8 % (0.8) %
Product Cost of Sales and Other 40,706 37,064 3,642 9.8 % 10.9 % 3.9 % 3.5 % 0.4 %
Total Cost of sales $ 434,505 $ 449,372 $ (14,867) (3.3) % (2.8) % 41.9 % 42.3 % (0.4) %


		Nine Months Ended September 30,									Percentage Change							% of Consolidated Revenues								Percentage Change (Favorable)/ Unfavorable
							Dollar Change			Actual			Constant Currency												THREE MONTHS ENDED SEPTEMBER 30,										PERCENTAGE CHANGE					% OF CONSOLIDATED REVENUES				PERCENTAGE CHANGE (FAVORABLE)/ UNFAVORABLE
				2020				2019										2020				2019							2021				2020		DOLLAR CHANGE		ACTUAL			CONSTANT CURRENCY		2021				2020
Labor	Labor	$	552,396		$	612,385		$	(59,989)		(9.8)	%				(7.8)	%			17.9	%			19.2	%					(1.3)	%	Labor	$	190,285	$	183,878	$	6,407		3.5	%	2.6	%	16.8	%		17.7	%	(0.9)	%
Facilities	Facilities	537,181			523,369			13,812			2.6	%		4.3	%			17.4	%			16.4	%			1.0	%	Facilities	202,426				179,031		23,395		13.1		%	11.7	%	17.9	%	17.3	%		0.6	%
Transportation	Transportation	97,990			123,136			(25,146)			(20.4)	%		(19.6)	%			3.2	%			3.9	%			(0.7)	%	Transportation	33,314				30,890		2,424		7.8		%	7.0	%	2.9	%	3.0	%		(0.1)	%
Product Cost of Sales and Other	Product Cost of Sales and Other	112,904			114,937			(2,033)			(1.8)	%		0.6	%			3.7	%			3.6	%			0.1	%	Product Cost of Sales and Other	55,638				40,706		14,932		36.7		%	35.5	%	4.9	%	3.9	%		1.0	%
COVID-19 Costs		7,648			—			7,648			100.0	%		100.0	%			0.2	%			—	%			0.2	%

Total Cost of sales	Total Cost of sales	$	1,308,119		$	1,373,827		$	(65,708)		(4.8)	%		(3.0)	%			42.4	%			43.2	%			(0.8)	%	Total Cost of sales	$	481,663			$	434,505	$	47,158	10.9		%	9.7	%	42.6	%	41.9	%		0.7	%


	NINE MONTHS ENDED SEPTEMBER 30,						PERCENTAGE CHANGE				% OF CONSOLIDATED REVENUES				PERCENTAGE CHANGE (FAVORABLE)/ UNFAVORABLE
	2021		2020		DOLLAR CHANGE		ACTUAL		CONSTANT CURRENCY		2021		2020
Labor	$	578,765	$	552,396	$	26,369	4.8	%	2.8	%	17.4	%	17.9	%	(0.5)	%
Facilities	593,487		537,181		56,306		10.5	%	8.0	%	17.8	%	17.4	%	0.4	%
Transportation	101,241		97,990		3,251		3.3	%	0.8	%	3.0	%	3.2	%	(0.2)	%
Product Cost of Sales and Other	134,658		112,904		21,754		19.3	%	16.6	%	4.0	%	3.7	%	0.3	%
COVID-19 Costs	—		7,648		(7,648)		(100.0)	%	(100.0)	%	—	%	0.2	%	(0.2)	%
Total Cost of sales	$	1,408,151	$	1,308,119	$	100,032	7.6	%	6.0	%	42.3	%	42.4	%	(0.1)	%

Primary factors influencing the change in reported consolidated Cost of sales for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020 include the following:

•~~a decrease~~an increase in labor costs driven by ~~cost containment actions taken~~an increase in ~~response to lower~~ service activity, ~~levels due to the~~particularly in regions where governments have lifted or eased COVID-19 ~~pandemic,~~related restrictions on our customers' non-essential business operations, partially offset by ~~incremental labor costs associated with recent acquisitions;~~

•~~a decrease in transportation costs, primarily driven by lower third-party carrier costs and fuel costs, reflecting cost containment actions taken in response to lower service activity levels;~~benefits from Project Summit;

•an increase in facilities expenses driven by increases in rent expense, reflecting the impact from our sale-leaseback activity during the second half of 2020 and first nine months of 2021 (which we expect to continue for the remainder of 2021 as we continue to look for future opportunities to monetize a small portion of our owned industrial real estate assets as part of our ongoing capital recycling program), as well as increases in ~~part due to recent acquisitions;~~property taxes, insurance and building maintenance costs;

•an increase in product cost of sales and other driven by an increase in project activity; and

•~~a decrease~~an increase of ~~$25.4~~$28.4 million due to foreign currency exchange rate fluctuations.


40									IRON MOUNTAIN SEPTEMBER 30, 2021 FORM 10-Q

Table of Contents

Part I. Financial Information

~~Selling, General and Administrative Expenses~~

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Consolidated Selling, general and administrative expenses consists of the following expenses (in thousands):

Three Months Ended
September 30, Percentage Change % of
Consolidated
Revenues Percentage
Change
(Favorable)/
Unfavorable
Dollar
Change Actual Constant
Currency
2020 2019 2020 2019
General and Administrative $ 131,911 $ 133,796 $ (1,885) (1.4) % (1.0) % 12.7 % 12.6 % 0.1 %
Sales, Marketing and Account Management 55,294 58,011 (2,717) (4.7) % (4.6) % 5.3 % 5.5 % (0.2) %
Information Technology 40,351 37,781 2,570 6.8 % 6.9 % 3.9 % 3.6 % 0.3 %
Bad Debt Expense 4,539 7,563 (3,024) (40.0) % (40.5) % 0.4 % 0.7 % (0.3) %
Total Selling, general and administrative expenses $ 232,095 $ 237,151 $ (5,056) (2.1) % (1.9) % 22.4 % 22.3 % 0.1 %


	THREE MONTHS ENDED SEPTEMBER 30,						PERCENTAGE CHANGE				% OF CONSOLIDATED REVENUES				PERCENTAGE CHANGE (FAVORABLE)/ UNFAVORABLE
	2021		2020		DOLLAR CHANGE		ACTUAL		CONSTANT CURRENCY		2021		2020
General, Administrative and Other	$	183,476	$	176,801	$	6,675	3.8	%	3.1	%	16.2	%	17.1	%	(0.9)	%
Sales, Marketing and Account Management	58,120		55,294		2,826		5.1	%	4.1	%	5.1	%	5.3	%	(0.2)	%

Total Selling, general and administrative expenses	$	241,596	$	232,095	$	9,501	4.1	%	3.3	%	21.4	%	22.4	%	(1.0)	%

Nine Months Ended
September 30, Percentage Change % of
Consolidated Revenues Percentage
Change
(Favorable)/
Unfavorable
Dollar
Change Actual Constant
Currency
2020 2019 2020 2019
General and Administrative $ 397,290 $ 428,970 $ (31,680) (7.4) % (6.1) % 12.9 % 13.5 % (0.6) %
Sales, Marketing and Account Management 167,138 186,717 (19,579) (10.5) % (9.3) % 5.4 % 5.9 % (0.5) %
Information Technology 120,995 125,981 (4,986) (4.0) % (3.0) % 3.9 % 4.0 % (0.1) %
Bad Debt Expense 25,715 16,350 9,365 57.3 % 57.4 % 0.8 % 0.5 % 0.3 %
COVID-19 Costs 1,637 — 1,637 100.0 % 100.0 % 0.1 % — % 0.1 %
Total Selling, general and administrative expenses $ 712,775 $ 758,018 $ (45,243) (6.0) % (4.7) % 23.1 % 23.8 % (0.7) %

~~Primary factors influencing the change in reported consolidated Selling, general and administrative expenses for the three months ended September 30, 2020 include the following:~~

•~~a decrease in bad debt expense, primarily driven by improved collection activity; and~~

•~~a decrease of $0.5 million due to foreign currency exchange rate fluctuations.~~


	NINE MONTHS ENDED SEPTEMBER 30,						PERCENTAGE CHANGE				% OF CONSOLIDATED REVENUES				PERCENTAGE CHANGE (FAVORABLE)/ UNFAVORABLE
	2021		2020		DOLLAR CHANGE		ACTUAL		CONSTANT CURRENCY		2021		2020
General, Administrative and Other	$	561,686	$	544,000	$	17,686	3.3	%	1.8	%	16.9	%	17.6	%	(0.7)	%
Sales, Marketing and Account Management	198,412		167,138		31,274		18.7	%	16.3	%	6.0	%	5.4	%	0.6	%
COVID-19 Costs	—		1,637		(1,637)		(100.0)	%	(100.0)	%	—	%	0.1	%	(0.1)	%
Total Selling, general and administrative expenses	$	760,098	$	712,775	$	47,323	6.6	%	5.0	%	22.8	%	23.1	%	(0.3)	%

Primary factors influencing the change in reported consolidated Selling, general and administrative expenses for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020 include the following:

•~~a decrease~~an increase in general, administrative and ~~administrative~~other expenses, driven by ~~decreased~~higher wages and benefits and stock-based compensation expense, ~~and~~partially offset by other employee related costs, reflecting ongoing cost containment measures and benefits from Project Summit, as well as lower professional fees ~~reflecting benefits from Project Summit~~ and ~~ongoing cost containment measures, partially offset by higher bonus compensation accruals;~~bad debt expense;

•~~a decrease~~an increase in sales, marketing and account management expenses, driven by ~~decreased~~higher compensation expense, primarily reflecting increased salaries and ~~other employee related costs, reflecting benefits from Project Summit and ongoing cost containment measures;~~

•~~higher bad debt expense, primarily driven by~~sales commissions, as well as increased ~~collectability risk resulting from the COVID-19 pandemic;~~marketing costs; and

•an increase of $11.4 million due to foreign currency exchange rate ~~fluctuations decreased reported consolidated Selling, general and administrative expenses by $9.8 million.~~fluctuations.

~~Table of Contents~~

~~Depreciation and Amortization~~

DEPRECIATION AND AMORTIZATION

Depreciation expense ~~decreased~~increased by ~~$1.7~~$12.5 million, or ~~0.5%~~3.7%, for the nine months ended September 30, ~~2020~~2021 compared to the prior year period. See Note ~~2.f.~~2.h. to Notes to Consolidated Financial Statements included in our Annual Report for additional information regarding the useful lives over which our property, plant and equipment is depreciated.

Amortization expense increased by ~~$1.0~~$11.0 million, or ~~0.7%~~7.4%, for the nine months ended September 30, ~~2020~~2021 compared to the prior year period.

ACQUISITION AND INTEGRATION COSTS

~~Restructuring Charges~~Acquisition and Integration Costs for the nine months ended September 30, 2021 were approximately $3.4 million and primarily consist of legal and professional fees.

RESTRUCTURING CHARGES

Restructuring Charges for the nine months ended September 30, 2021 and 2020 were approximately $129.7 million and $128.7 million, respectively, and primarily consist of employee severance costs ~~internal costs~~and professional fees associated with ~~the development and implementation~~Project Summit.


IRON MOUNTAIN SEPTEMBER 30, 2021 FORM 10-Q									41

Table of ~~Project Summit initiatives and professional fees.~~

Contents

~~Intangible impairments~~Part I. Financial Information

The intangible impairment charge for the nine months ended September 30, 2020 was $23.0 million and related to the write-down of goodwill associated with our Fine Arts reporting unit in the first quarter of 2020, as discussed above.

~~Gain on disposal/write-down of property, plant and equipment, net~~

(GAIN) LOSS ON DISPOSAL/WRITE-DOWN OF PROPERTY, PLANT AND EQUIPMENT, NET

Consolidated gain on disposal/write-down of property, plant and equipment, net for the ~~three~~nine months ended September 30, 2021 was approximately $134.3 million, which primarily consisted of gains of approximately $127.4 million associated with the sale-leaseback transactions of five facilities in the United Kingdom during the second quarter of 2021.

Consolidated gain on disposal/write-down of property, plant and equipment, net for the nine months ended September 30, 2020 was approximately ~~$75.8 million and~~ $78.2 million, ~~respectively. These amounts~~which primarily consisted of gains of approximately $76.4 million associated with the sale-leaseback transactions of two facilities in the United States during the third quarter of 2020.

Consolidated gain on disposal/write-down of property, plant and equipment ~~net, for the three~~recognized during both 2021 and ~~nine months ended September 30, 2019 was approximately $9.3 million and $17.1 million, respectively. These amounts consisted~~2020 are a result of ~~(i)~~our program to monetize a ~~gain~~small portion of approximately $36.0 million associated with the sale of certain land and buildings during the second quarter of 2019 and (ii) a gain of approximately $9.8 million associated with a sale-leaseback transaction of five facilities during the third quarter of 2019, and were partially offset by losses incurred during the second quarter of 2019 primarily associated with an impairment charge on the assets associated with the select offerings within our ~~Iron Mountain Iron Cloud portfolio of approximately $24.8 million.~~

industrial assets.

OTHER EXPENSES, NET

~~Interest Expense, Net~~

INTEREST EXPENSE, NET

Consolidated interest expense, net ~~decreased~~increased by ~~$1.0~~$0.1 million, to ~~$313.4~~$313.5 million in the nine months ended September 30, ~~2020~~2021 from ~~$314.4~~$313.4 million in the prior year period. This decrease was mainly driven by a decrease in the weighted average interest rate on our outstanding debt, partially offset by higher average debt outstanding during the nine months ended September 30, 2020. See Note 56 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding our indebtedness.

~~Table of Contents~~

~~Other Expense (Income), Net~~

OTHER (INCOME) EXPENSE, NET

Consolidated other (income) expense, ~~(income),~~ net consists of the following (in thousands):

Three Months Ended
September 30, Dollar
Change Nine Months Ended
September 30, Dollar
Change
Description 2020 2019 2020 2019
Foreign currency transaction losses (gains), net $ 29,635 $ (18,251) $ 47,886 $ (6,293) $ (19,885) $ 13,592
Debt extinguishment expense 51,260 — 51,260 68,300 — 68,300
Other, net 2,570 4,836 (2,266) 4,432 6,488 (2,056)
Other Expense (Income), Net $ 83,465 $ (13,415) $ 96,880 $ 66,439 $ (13,397) $ 79,836

~~Foreign currency transaction losses (gains), net~~


	THREE MONTHS ENDED SEPTEMBER 30,				DOLLAR CHANGE		NINE MONTHS ENDED SEPTEMBER 30,				DOLLAR CHANGE
DESCRIPTION	2021		2020				2021		2020
Foreign currency transaction losses (gains), net	$	(23,200)	$	29,635	$	(52,835)	$	(16,157)	$	(6,293)	$	(9,864)
Debt extinguishment expense	—		51,260		(51,260)		—		68,300		(68,300)
Other, net(1)	4,699		2,570		2,129		(183,861)		4,432		(188,293)
Other (Income) Expense, Net	$	(18,501)	$	83,465	$	(101,966)	$	(200,018)	$	66,439	$	(266,457)

(1)

~~We recorded~~Other, net ~~foreign currency transaction gains of $6.3 million in~~for the nine months ended September 30, ~~2020, based on period-end exchange rates. These gains resulted~~2021 is primarily ~~from the impact~~comprised of ~~changes in the exchange rate of the British pound sterling against the United States dollar compared to December 31, 2019 on our intercompany balances with and between certain of our subsidiaries.~~

We recorded net foreign currency transaction gains of $19.9 million in the nine months ended September 30, 2019, based on period-end exchange rates. These gains resulted primarily from the impact of changes in the exchange rate of the British pound sterling against the United States dollar compared to December 31, 2018 on our intercompany balances with and between certain of our subsidiaries.

~~Debt extinguishment expense~~

~~Debt extinguishment expense represents the call premiums and write-off of unamortized deferred financing costs associated with the early redemption of the 6% Notes due 2023, the 4~~3/8~~% Notes, the 5~~3/4~~% Notes, the CAD Notes, the Euro Notes and the 5~~3/8~~% Notes (as defined below).~~

~~Other, net~~

~~Included in Other, net are losses on certain of our equity method investments, which are partially offset by~~(a) a gain of approximately ~~$10.0~~$180.6 million ~~recorded during the first quarter of 2020 in connection~~associated with our ~~acquisition~~IPM Divestment and (b) a gain of approximately $20.3 million associated with the ~~remaining 75% equity interest~~loss of control and related deconsolidation, as of May 18, 2021, of one of our wholly owned Netherlands subsidiaries, for which we had value-added tax liability exposure that was recorded in OSG Records Management (Europe) Limited ("OSG" and such acquisition, the "OSG Acquisition"), as our previously held 25% equity investment in OSG was remeasured to fair value at the closing date of the OSG Acquisition.

2019.

~~Provision for Income Taxes~~

PROVISION FOR INCOME TAXES

We provide for income taxes during interim periods based on our estimate of the effective tax rate for the year.

Our effective tax rates for the three and nine months ended September 30, ~~2020~~2021 and ~~2019~~2020 are as follows:

Three Months Ended
September 30, Nine Months Ended
September 30,
2020 2019 2020 2019
Effective Tax Rate(1) 26.5 % 16.8 % 25.7 % 15.7 %


	THREE MONTHS ENDED SEPTEMBER 30,				NINE MONTHS ENDED SEPTEMBER 30,
	2021		2020		2021		2020
Effective Tax Rate(1)	29.1	%	26.5	%	28.1	%	25.7	%

(1)The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three and nine months ended September 30, ~~2020~~2021 and ~~2019~~2020 were the ~~benefit derived from the dividends paid deduction and the impact~~impacts of differences in the tax rates at which our foreign earnings are subject, ~~including foreign exchange gains and losses in different jurisdictions with different tax rates. In addition, for~~partially offset by the ~~three and nine months ended September 30, 2020,~~benefits derived from the dividends paid deduction. The costs associated with Project Summit are more heavily weighted to our United States qualified REIT subsidiaries ("QRSs"), and, therefore, provide no tax benefit. Additionally, the nine months ended September 30, 2021,reflects a discrete tax expense of approximately $12.0 million primarily resulting from a tax law change in the United Kingdom.

At December 31, 2020, we concluded that it was our intent to indefinitely reinvest our current and future undistributed earnings of certain of our unconverted foreign taxable REIT subsidiaries (“TRSs”) outside the United States, with the exception of certain limited instances. During 2021, as a result of the enactment of a tax law and the closing of various acquisitions, we reassessed this intention and concluded that it is no longer our intention to reinvest our undistributed earnings of our foreign TRSs indefinitely outside the United States. As a REIT, future repatriation of incremental undistributed earnings of our foreign subsidiaries will not be subject to federal or state income tax, with the exception of foreign withholding taxes. However, such future repatriations may require distribution to our stockholders in accordance with REIT distribution rules, and any such distribution may then be taxable, as appropriate, at the stockholder level. We expect to provide for foreign withholding taxes on the current and future earnings of all of our foreign subsidiaries as the result of such reassessment.


42									IRON MOUNTAIN SEPTEMBER 30, 2021 FORM 10-Q

Table of Contents

Part I. Financial Information

NET INCOME (LOSS) ~~FROM CONTINUING OPERATIONS~~ AND ADJUSTED EBITDA

The following table reflects the effect of the foregoing factors on our consolidated Net Income (Loss) ~~From Continuing Operations~~ and Adjusted EBITDA (in thousands):


		Three Months Ended September 30,						Dollar Change		Percentage Change			THREE MONTHS ENDED SEPTEMBER 30,						DOLLAR CHANGE		PERCENTAGE CHANGE
		2020			2019								2021			2020
Income (Loss) from Continuing Operations		$	38,562		$	108,284		$	(69,722)	(64.4)	%
Income (Loss) from Continuing Operations as a percentage of Consolidated Revenue		3.7		%	10.2		%
Net Income (Loss)												Net Income (Loss)	$	68,111		$	38,562		$	29,549	76.6	%
Net Income (Loss) as a percentage of Consolidated Revenue												Net Income (Loss) as a percentage of Consolidated Revenue	6.0		%	3.7		%
Adjusted EBITDA	Adjusted EBITDA	$	370,047		$	375,701		$	(5,654)	(1.5)	%	Adjusted EBITDA	$	417,769		$	376,012		$	41,757	11.1	%
Adjusted EBITDA Margin	Adjusted EBITDA Margin	35.7		%	35.4		%					Adjusted EBITDA Margin	37.0		%	36.3		%



OR

☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from to


Delaware			23-2588479
(State or other Jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification No.)


	~~Page~~
PART I—FINANCIAL INFORMATION

		~~Item 1—~~1	ITEM 1.	Unaudited Condensed Consolidated Financial Statements	3

2		Condensed Consolidated Balance Sheets at September 30, ~~2020~~2021 and December 31, ~~2019~~2020
			3

Condensed Consolidated Statements of Operations for the Three Months Ended September 30, ~~2020~~2021 and ~~2019~~2020
			4

Condensed Consolidated Statements of Operations for the Nine Months Ended September 30, ~~2020~~2021 and ~~2019~~2020
			5

Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, ~~2020~~2021 and ~~2019~~		62020
			6	Condensed Consolidated Statements of Equity for the Three and Nine Months Ended September 30, 2021
			7	Condensed Consolidated Statements of Equity for the Three and Nine Months Ended September 30, 2020	7

~~Condensed Consolidated Statements of Equity for the Three and~~ ~~Nine~~ ~~Months Ended~~ ~~September~~ ~~30, 2019~~		8

Condensed Consolidated Statements of Cash Flows for the ~~Nine~~N i ne Months Ended September 30, ~~2020~~2021 and ~~2019~~2020
			9

Notes to Condensed Consolidated Financial Statements (Unaudited)		10
		30
~~Item 2—~~ITEM 2.		Management's Discussion and Analysis of Financial Condition and Results of Operations
		3353	ITEM 4.	Controls and Procedures

~~Item 4—Controls and Procedures~~		57

PART II—OTHER INFORMATION
		55
~~Item 2—~~ITEM 2.		Unregistered Sales of Equity Securities and Use of Proceeds

		55	58ITEM 6.	Exhibits



~~Item 6—Exhibits~~56		58

Signatures		59


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

Non-tax deductible goodwill acquired during the period	17,180		—		9,991		27,171
Goodwill allocated to IPM Divestment	—		—		(46,105)		(46,105)
Fair value and other adjustments	(6,091)		—		(1,268)		(7,359)
Currency effects	(49,737)		(7,995)		(943)		(58,675)
Goodwill balance, net accumulated amortization as of September 30, 2021	$	3,985,534	$	428,992	$	58,115	$	4,472,641

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


	SEPTEMBER 30, 2021				DECEMBER 31, 2020
	CARRYING VALUE		EQUITY INTEREST		CARRYING VALUE		EQUITY INTEREST
Web Werks JV	$	51,257	38	%	$	—	—	%
Joint venture with AGC Equity Partners (the “Frankfurt JV”)	26,272		20	%	26,500		20	%
Joint venture with MakeSpace Labs, Inc. (the “MakeSpace JV”)	27,419		48	%	16,924		39	%


(Mark One)
☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	September 30, 2020		December 31, 2019
ASSETS
Current Assets:
Cash and cash equivalents	$	151,972	$	193,555

Accounts receivable (less allowances of $53,788 and $42,856 as of September 30, 2020 and December 31, 2019, respectively) (see Note 2.d.)	791,859		850,701

Prepaid expenses and other	190,194		192,083

Total Current Assets	1,134,025		1,236,339
Property, Plant and Equipment:
Property, plant and equipment	8,100,871		8,048,906
Less—Accumulated depreciation	(3,641,804)		(3,425,869)
Property, Plant and Equipment, Net	4,459,067		4,623,037
Other Assets, Net:
Goodwill	4,461,529		4,485,209
Customer relationships, customer inducements and data center lease-based intangibles	1,317,399		1,393,183
Operating lease right-of-use assets (see Note 2.e.)	1,963,019		1,869,101
Other	347,621		209,947
Total Other Assets, Net	8,089,568		7,957,440
Total Assets	$	13,682,660	$	13,816,816
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of long-term debt	$	392,586	$	389,013
Accounts payable	302,618		324,708
Accrued expenses and other current liabilities (includes current portion of operating lease liabilities; see Note 2.e.)	951,269		961,752
Deferred revenue	244,430		274,036

Total Current Liabilities	1,890,903		1,949,509
Long-term Debt, net of current portion	8,618,856		8,275,566
Long-term Operating Lease Liabilities, net of current portion (see Note 2.e.)	1,818,844		1,728,686
Other Long-term Liabilities	158,507		143,018
Deferred Income Taxes	194,638		188,128
Commitments and Contingencies (see Note 7)
Redeemable Noncontrolling Interests	63,666		67,682
Equity:
Iron Mountain Incorporated Stockholders' Equity:
Preferred stock (par value $0.01; authorized 10,000,000 shares; NaN issued and outstanding)	0		0
Common stock (par value $0.01; authorized 400,000,000 shares; issued and outstanding 288,162,966 and 287,299,645 shares as of September 30, 2020 and December 31, 2019, respectively)	2,882		2,873
Additional paid-in capital	4,335,799		4,298,566
(Distributions in excess of earnings) Earnings in excess of distributions	(3,018,144)		(2,574,896)
Accumulated other comprehensive items, net	(383,178)		(262,581)
Total Iron Mountain Incorporated Stockholders' Equity	937,359		1,463,962
Noncontrolling Interests	(113)		265
Total Equity	937,246		1,464,227
Total Liabilities and Equity	$	13,682,660	$	13,816,816


	September 30, 2020						December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Contract Fulfillment Costs	$	123,795	$	(57,538)	$	66,257	$	109,232	$	(50,757)	$	58,475


			FAIR VALUE MEASUREMENTS AT SEPTEMBER 30, 2021 USING
DESCRIPTION	TOTAL CARRYING VALUE AT SEPTEMBER 30, 2021		QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Money Market Funds	$	9,186	$	—	$	9,186	$	—
Time Deposits	2,175		—		2,175		—
Trading Securities	11,713		11,572		141		—
Derivative Assets	1,214		—		1,214		—
Derivative Liabilities	15,412		—		15,412		—


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


	THREE MONTHS ENDED SEPTEMBER 30, 2021						NINE MONTHS ENDED SEPTEMBER 30, 2021
	FOREIGN CURRENCY TRANSLATION AND OTHER ADJUSTMENTS		CHANGE IN FAIR VALUE OF DERIVATIVE INSTRUMENTS		TOTAL		FOREIGN CURRENCY TRANSLATION AND OTHER ADJUSTMENTS		CHANGE IN FAIR VALUE OF DERIVATIVE INSTRUMENTS		TOTAL
Beginning of Period	$	(229,790)	$	(28,863)	$	(258,653)	$	(206,190)	$	(49,703)	$	(255,893)
Other comprehensive (loss) income):
Foreign currency translation and other adjustments	(90,465)		—		(90,465)		(114,065)		—		(114,065)
Change in fair value of derivative instruments	—		14,665		14,665		—		35,505		35,505
Total other comprehensive (loss) income	(90,465)		14,665		(75,800)		(114,065)		35,505		(78,560)
End of Period	$	(320,255)	$	(14,198)	$	(334,453)	$	(320,255)	$	(14,198)	$	(334,453)


	SEPTEMBER 30, 2021						DECEMBER 31, 2020
	GROSS CARRYING AMOUNT		ACCUMULATED AMORTIZATION		NET CARRYING AMOUNT		GROSS CARRYING AMOUNT		ACCUMULATED AMORTIZATION		NET CARRYING AMOUNT
Intake Costs asset	$	71,540	$	(41,246)	$	30,294	$	63,721	$	(33,352)	$	30,369
Commissions asset	107,298		(48,708)		58,590		91,069		(38,787)		52,282


DESCRIPTION	LOCATION IN BALANCE SHEET	SEPTEMBER 30, 2021		DECEMBER 31, 2020
Deferred revenue - Current	Deferred revenue	$	257,593	$	295,785
Deferred revenue - Long-term	Other Long-term Liabilities	34,342		35,612


			Fair Value Measurements at December 31, 2019 Using
Description	Total Carrying Value at December 31, 2019		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Money Market Funds	$	13,653	$	0	$	13,653	$	0
Trading Securities	10,732		10,168		564		0
Derivative Liabilities	9,756		0		9,756		0


	Three Months Ended September 30, 2019						Nine Months Ended September 30, 2019
	Foreign Currency Translation and Other Adjustments		Change in Fair Value of Derivative Instruments		Total		Foreign Currency Translation and Other Adjustments		Change in Fair Value of Derivative Instruments		Total
Beginning of Period	$	(253,243)	$	(8,578)	$	(261,821)	$	(264,691)	$	(973)	$	(265,664)
Other comprehensive (loss) income:
Foreign currency translation and other adjustments	(82,886)		0		(82,886)		(71,438)		0		(71,438)
Change in fair value of derivative instruments	0		(1,496)		(1,496)		0		(9,101)		(9,101)
Total other comprehensive (loss) income	(82,886)		(1,496)		(84,382)		(71,438)		(9,101)		(80,539)
End of Period	$	(336,129)	$	(10,074)	$	(346,203)	$	(336,129)	$	(10,074)	$	(346,203)


	NINE MONTHS ENDED SEPTEMBER 30, 2021
Cash Paid (gross of cash acquired)	$	224,192
Fair Value of Noncontrolling Interests	3,878
Purchase Price Holdbacks and Other	2,534
Total Consideration	230,604
Fair Value of Identifiable Assets Acquired and Liabilities Assumed:
Cash	20,440
Accounts Receivable, Prepaid Expenses and Other Assets	25,392
Property, Plant and Equipment(1)	147,132
Customer Relationship Intangible Assets(2)	39,315
Operating Lease Right-of-Use Assets	45,209
Data Center In-Place Leases(3)	4,994
Data Center Tenant Relationships(4)	4,682
Data Center Above-Market Leases(5)	1,042
Debt Assumed	(9,026)
Accounts Payable, Accrued Expenses and Other Liabilities	(23,082)
Operating Lease Liabilities	(45,209)
Deferred Income Taxes	(7,436)
Data Center Below-Market Leases(5)	(20)
Total Fair Value of Identifiable Net Assets Acquired	203,433
Goodwill Initially Recorded	$	27,171


	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Cost of sales (excluding depreciation and amortization)	$	(1,945)	$	(4,136)
Selling, general and administrative	$	(2,005)	$	(4,461)
Significant Acquisition Costs	$	3,950	$	8,597


DERIVATIVE INSTRUMENTS(1)	SEPTEMBER 30, 2021		DECEMBER 31, 2020
Cash Flow Hedges(2)
Interest Rate Swap Agreements	$	(13,116)	$	(21,062)
Net Investment Hedges(3)
August 2023 Cross-Currency Swap Agreements	$	(2,296)	$	(8,229)
February 2026 Cross-Currency Swap Agreements	1,214		(20,412)


	THREE MONTHS ENDED SEPTEMBER 30,				NINE MONTHS ENDED SEPTEMBER 30,
	2021(1)		2020		2021(1)		2020
Foreign exchange gains (losses) associated with net investment hedge	$	—	$	(16,604)	$	—	$	(17,005)


	Nine Months Ended September 30, 2020
~~Cash Paid (gross of cash acquired)(1)~~	$	~~124,614~~
~~Fair Value of Investments Applied to Acquisitions~~	~~27,276~~
~~Total Consideration~~	~~151,890~~
~~Fair Value of Identifiable Assets Acquired:~~
~~Cash~~	~~6,545~~
~~Accounts Receivable, Prepaid Expenses and Other Assets~~	~~16,815~~
~~Property, Plant and Equipment(2)~~	~~43,643~~
~~Customer Relationship Intangible Assets(3)~~	~~60,846~~
~~Operating Lease Right-of-Use Assets~~	~~111,251~~
~~Debt Assumed~~	~~(11,479)~~
~~Accounts Payable, Accrued Expenses and Other Liabilities~~	~~(9,435)~~
~~Operating Lease Liabilities~~	~~(111,251)~~
~~Deferred Income Taxes~~	~~(6,364)~~

~~Total Fair Value of Identifiable Net Assets Acquired~~	~~100,571~~
~~Goodwill Initially Recorded~~	$	~~51,319~~


	September 30, 2020								December 31, 2019
	Debt (inclusive of discount)		Unamortized Deferred Financing Costs		Carrying Amount		Fair Value		Debt (inclusive of discount)		Unamortized Deferred Financing Costs		Carrying Amount		Fair Value
Revolving Credit Facility(1)	$	172,603	$	(9,482)	$	163,121	$	172,603	$	348,808	$	(12,053)	$	336,755	$	348,808
Term Loan A(1)	218,750		0		218,750		218,750		228,125		0		228,125		228,125
Term Loan B	681,315		(6,557)		674,758		682,500		686,395		(7,493)		678,902		686,890
Australian Dollar Term Loan (the "AUD Term Loan")	226,690		(1,731)		224,959		227,602		226,924		(2,313)		224,611		228,156
UK Bilateral Revolving Credit Facility (the "UK Bilateral Facility")	180,204		(1,393)		178,811		180,204		184,601		(1,801)		182,800		184,601
43/8% Senior Notes due 2021 (the "43/8% Notes")(2)	0		0		0		0		500,000		(2,436)		497,564		503,450
6% Senior Notes due 2023 (the "6% Notes due 2023")(2)	0		0		0		0		600,000		(4,027)		595,973		613,500
53/8% CAD Senior Notes due 2023 (the "CAD Notes")	0		0		0		0		192,058		(2,071)		189,987		199,380
53/4% Senior Subordinated Notes due 2024 (the "53/4% Notes")(2)	0		0		0		0		1,000,000		(6,409)		993,591		1,010,625
3% Euro Senior Notes due 2025 (the "Euro Notes")(2)	0		0		0		0		336,468		(3,462)		333,006		345,660
37/8% GBP Senior Notes due 2025 (the "GBP Notes")	514,867		(4,942)		509,925		519,027		527,432		(5,809)		521,623		539,892
53/8% Senior Notes due 2026 (the "53/8% Notes")	0		0		0		0		250,000		(2,756)		247,244		261,641
47/8% Senior Notes due 2027 (the "47/8% Notes due 2027")(2)	1,000,000		(9,954)		990,046		1,012,500		1,000,000		(11,020)		988,980		1,029,475
51/4% Senior Notes due 2028 (the "51/4% Notes due 2028")(2)	825,000		(8,857)		816,143		851,813		825,000		(9,742)		815,258		859,598
5% Senior Notes due 2028 (the "5% Notes")(2)	500,000		(5,667)		494,333		507,500		0		0		0		0
47/8% Senior Notes due 2029 (the "47/8% Notes due 2029")(2)	1,000,000		(13,019)		986,981		1,012,500		1,000,000		(14,104)		985,896		1,015,640
51/4% Senior Notes due 2030 (the "51/4 Notes due 2030")(2)	1,300,000		(14,792)		1,285,208		1,352,000		0		0		0		0
41/2% Senior Notes due 2031 (the "41/2% Notes")(2)	1,100,000		(12,970)		1,087,030		1,102,750		0		0		0		0
55/8% Senior Notes due 2032 (the "55/8% Notes")(2)	600,000		(6,873)		593,127		630,000		0		0		0		0
Real Estate Mortgages, Financing Lease Liabilities and Other	468,906		(215)		468,691		468,906		523,671		(406)		523,265		523,671
Accounts Receivable Securitization Program	270,600		(168)		270,432		270,600		272,062		(81)		271,981		272,062
Mortgage Securitization Program	50,000		(873)		49,127		50,000		50,000		(982)		49,018		50,000
Total Long-term Debt	9,108,935		(97,493)		9,011,442				8,751,544		(86,965)		8,664,579
Less Current Portion	(392,586)		0		(392,586)				(389,013)		0		(389,013)
Long-term Debt, Net of Current Portion	$	8,716,349	$	(97,493)	$	8,618,856			$	8,362,531	$	(86,965)	$	8,275,566


	SEPTEMBER 30, 2021								DECEMBER 31, 2020
	DEBT (INCLUSIVE OF DISCOUNT)		UNAMORTIZED DEFERRED FINANCING COSTS		CARRYING AMOUNT		FAIR VALUE		DEBT (INCLUSIVE OF DISCOUNT)		UNAMORTIZED DEFERRED FINANCING COSTS		CARRYING AMOUNT		FAIR VALUE
Revolving Credit Facility(1)	$	310,000	$	(6,034)	$	303,966	$	310,000	$	—	$	(8,620)	$	(8,620)	$	—
Term Loan A(1)	206,250		—		206,250		206,250		215,625		—		215,625		215,625
Term Loan B	674,540		(5,308)		669,232		675,500		679,621		(6,244)		673,377		680,750
Australian Dollar Term Loan (the “AUD Term Loan”)(2)	223,109		(881)		222,228		223,557		243,152		(1,624)		241,528		244,014
UK Bilateral Revolving Credit Facility (the “UK Bilateral Facility”)	188,431		(874)		187,557		188,431		191,101		(1,307)		189,794		191,101
37/8% GBP Senior Notes due 2025 (the “GBP Notes”)	538,374		(4,151)		534,223		544,431		546,003		(4,983)		541,020		553,101
47/8% Senior Notes due 2027 (the “47/8% Notes due 2027”)(3)	1,000,000		(8,532)		991,468		1,035,000		1,000,000		(9,598)		990,402		1,046,250
51/4% Senior Notes due 2028 (the “51/4% Notes due 2028”)(3)	825,000		(7,676)		817,324		861,094		825,000		(8,561)		816,439		868,313
5% Senior Notes due 2028 (the “5% Notes”)(3)	500,000		(4,944)		495,056		521,250		500,000		(5,486)		494,514		523,125
47/8% Senior Notes due 2029 (the “47/8% Notes due 2029”)(3)	1,000,000		(11,573)		988,427		1,047,500		1,000,000		(12,658)		987,342		1,050,000
51/4% Senior Notes due 2030 (the “51/4 Notes due 2030”)(3)	1,300,000		(13,287)		1,286,713		1,376,375		1,300,000		(14,416)		1,285,584		1,400,750
41/2% Senior Notes due 2031 (the “41/2% Notes”)(3)	1,100,000		(11,715)		1,088,285		1,111,000		1,100,000		(12,648)		1,087,352		1,138,500
55/8% Senior Notes due 2032 (the “55/8% Notes”)(3)	600,000		(6,292)		593,708		642,000		600,000		(6,727)		593,273		660,000
Real Estate Mortgages, Financing Lease Liabilities and Other	483,934		(905)		483,029		483,934		511,922		(1,086)		510,836		511,922
Accounts Receivable Securitization Program	266,400		(449)		265,951		266,400		85,000		(152)		84,848		85,000
Total Long-term Debt	9,216,038		(82,621)		9,133,417				8,797,424		(94,110)		8,703,314
Less Current Portion	(319,025)		881		(318,144)				(193,759)		—		(193,759)
Long-term Debt, Net of Current Portion	$	8,897,013	$	(81,740)	$	8,815,273			$	8,603,665	$	(94,110)	$	8,509,555


	September 30, 2020						December 31, 2019
	Gross Cash Position		Outstanding Debit Balances		Net Cash Position		Gross Cash Position		Outstanding Debit Balances		Net Cash Position
QRS Cash Pool	$	573,600	$	(573,000)	$	600	$	372,100	$	(369,000)	$	3,100
TRS Cash Pool	363,800		(362,600)		1,200		319,800		(301,300)		18,500


	SEPTEMBER 30, 2021						DECEMBER 31, 2020
	GROSS CASH POSITION		OUTSTANDING DEBIT BALANCES		NET CASH POSITION		GROSS CASH POSITION		OUTSTANDING DEBIT BALANCES		NET CASH POSITION
BMG QRS Cash Pool	$	566,100	$	(562,400)	$	3,700	$	448,700	$	(447,400)	$	1,300
BMG TRS Cash Pool	579,300		(578,300)		1,000		555,500		(553,500)		2,000
JPM QRS Cash Pool	4,200		(2,300)		1,900		—		—		—
JPM TRS Cash Pool	5,200		(4,700)		500		—		—		—



EXCLUDED
•Acquisition and Integration Costs						•Other (income) expense, net
•Restructuring Charges						•Stock-based compensation expense
•Intangible impairments						•COVID-19 Costs (as defined below)
•(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate)


	THREE MONTHS ENDED SEPTEMBER 30,				NINE MONTHS ENDED SEPTEMBER 30,				FROM THE INCEPTION OF PROJECT SUMMIT THROUGH SEPTEMBER 30, 2021
	2021		2020		2021		2020
Employee severance costs	$	6,797	$	13,579	$	14,526	$	31,229	$	82,725
Professional fees and other costs	43,635		34,792		115,160		97,486		289,954
Restructuring Charges	$	50,432	$	48,371	$	129,686	$	128,715	$	372,679



	EMPLOYEE SEVERANCE COSTS		PROFESSIONAL FEES AND OTHER		TOTAL ACCRUED RESTRUCTURING CHARGES




Balance as of December 31, 2019	$	4,823	$	12,954	$	17,777
Amounts accrued	47,349		147,047		194,396
Payments	(32,455)		(136,222)		(168,677)
Other, including currency translation adjustments	(3,439)		(4)		(3,443)
Balance as of December 31, 2020	16,278		23,775		40,053
Amounts accrued	14,525		115,161		129,686
Payments	(20,771)		(112,714)		(133,485)
Other, including currency translation adjustments	(939)		—		(939)
Balance as of September 30, 2021	$	9,093	$	26,222	$	35,315



~~Balance as of December 31, 2019(1)~~	$	~~17,777~~ IRON MOUNTAIN SEPTEMBER 30, 2021 FORM 10-Q
~~Amounts accrued~~	~~128,715~~

~~Payments~~	~~(97,646)~~
~~Other, including currency translation adjustments~~	~~(3,604)~~
~~Balance as of September 30, 2020(2)~~	$	~~45,242~~	29


	For the Three Months Ended September 30, 2020		For the Nine Months Ended September 30, 2020		From the inception of Project Summit through September 30, 2020
Restructuring Charges	$	48,371	$	128,715	$	177,312
Capital Expenditures associated with Project Summit	2,567		4,672		4,672
Total	$	50,938	$	133,387	$	181,984


	Nine Months Ended September 30,						Percentage Change				% of Consolidated Revenues				Percentage Change (Favorable)/ Unfavorable

					Dollar Change		Actual		Constant Currency
	2020		2019								2020		2019
General and Administrative	$	397,290	$	428,970	$	(31,680)	(7.4)	%	(6.1)	%	12.9	%	13.5	%	(0.6)	%
Sales, Marketing and Account Management	167,138		186,717		(19,579)		(10.5)	%	(9.3)	%	5.4	%	5.9	%	(0.5)	%
Information Technology	120,995		125,981		(4,986)		(4.0)	%	(3.0)	%	3.9	%	4.0	%	(0.1)	%
Bad Debt Expense	25,715		16,350		9,365		57.3	%	57.4	%	0.8	%	0.5	%	0.3	%
COVID-19 Costs	1,637		—		1,637		100.0	%	100.0	%	0.1	%	—	%	0.1	%
Total Selling, general and administrative expenses	$	712,775	$	758,018	$	(45,243)	(6.0)	%	(4.7)	%	23.1	%	23.8	%	(0.7)	%



Consolidated Adjusted EBITDA Margin for the nine months ended September 30, 2021 increased by 40 basis points compared to the same prior year period, reflecting improved service revenue trends, benefits from Project Summit, revenue management and ongoing cost containment measures, partially offset by higher compensation expense and sales commissions.			↑ INCREASED BY $102.5 MILLION OR 9.3% Consolidated Adjusted EBITDA


	2020		2019
Cash Flows from Operating Activities - Continuing Operations	$	627,218	$	648,145
Cash Flows from Investing Activities - Continuing Operations	(360,131)		(640,696)
Cash Flows from Financing Activities - Continuing Operations	(307,174)		19,885
Cash and Cash Equivalents, including Restricted Cash, End of Period	151,972		186,778


	Nine Months Ended September 30,
Nature of Capital Spend	2020		2019
Growth Investment Capital Expenditures:
Real Estate	$	45,888	$	107,895
Non-Real Estate	35,538		20,813
Data Center	151,692		316,932
Innovation	1,145		14,596
Total Growth Investment Capital Expenditures	234,263		460,236
Recurring Capital Expenditures:
Real Estate	28,242		42,997
Non-Real Estate	12,183		19,255
Data Center	8,083		4,951
Total Recurring Capital Expenditures	48,508		67,203
Total Capital Spend (on accrual basis)	282,771		527,439
Net increase (decrease) in prepaid capital expenditures	2,221		361
Net decrease (increase) in accrued capital expenditures	24,170		5,814
Total Capital Spend (on cash basis)	$	309,162	$	533,614


~~Exhibit No.~~EXHIBIT NO.	~~Description~~DESCRIPTION
~~4.1~~ 10.1		~~2031 Senior Notes Inde~~nt u ~~re, dated as of~~ ~~August 18, 2020~~Separation Agreement , ~~among~~dated August 6, 2021, between the Company ~~Subsidiary Guarantors~~ and ~~Wells Fargo Bank, National Association, as trustee, relating to the 4.500% Senior Notes due 2031.~~Ernest Clout ier . (~~Incorporated by reference to the Company's Current Report on Form 8-K dated August 18, 2020.~~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. (Furnished herewith.)
32.2		Section 1350 Certification of Chief Financial Officer. (Furnished herewith.)
101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document.
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	Inline XBRL Taxonomy Label Linkbase Document.
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.



			IRON MOUNTAIN INCORPORATED
			By:			/s/ DANIEL BORGES


						Daniel Borges Senior Vice President, Chief Accounting Officer