Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-13045 | |
Entity Registrant Name | IRON MOUNTAIN INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 23-2588479 | |
Entity Address, Address Line One | 85 New Hampshire Avenue | |
Entity Address, Address Line Two | Suite 150 | |
Entity Address, City or Town | Portsmouth | |
Entity Address, State or Province | NH | |
Entity Address, Postal Zip Code | 03801 | |
City Area Code | 617 | |
Local Phone Number | 535-4766 | |
Title of 12(b) Security | Common Stock, $.01 par value | |
Trading Symbol | IRM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Emerging Growth Company | false | |
Small Business Entity | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 291,623,270 | |
Entity Central Index Key | 0001020569 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 146,442 | $ 141,797 |
Accounts receivable (less allowances of $61,039 and $54,143 as of March 31, 2023 and December 31, 2022, respectively) | 1,174,326 | 1,174,915 |
Prepaid expenses and other | 280,169 | 230,433 |
Total Current Assets | 1,600,937 | 1,547,145 |
Property, Plant and Equipment: | ||
Property, plant and equipment | 9,286,873 | 9,025,765 |
Less—Accumulated depreciation | (3,944,300) | (3,910,321) |
Property, Plant and Equipment, Net | 5,342,573 | 5,115,444 |
Other Assets, Net: | ||
Goodwill | 4,896,761 | 4,882,734 |
Customer and supplier relationships and other intangible assets | 1,380,316 | 1,423,145 |
Operating lease right-of-use assets | 2,666,951 | 2,583,704 |
Other | 578,171 | 588,342 |
Total Other Assets, Net | 9,522,199 | 9,477,925 |
Total Assets | 16,465,709 | 16,140,514 |
Current Liabilities: | ||
Current portion of long-term debt | 101,608 | 87,546 |
Accounts payable | 512,269 | 469,198 |
Accrued expenses and other current liabilities (includes current portion of operating lease liabilities) | 1,057,320 | 1,031,910 |
Deferred revenue | 335,393 | 328,910 |
Total Current Liabilities | 2,006,590 | 1,917,564 |
Long-term Debt, net of current portion | 10,862,188 | 10,481,449 |
Long-term Operating Lease Liabilities, net of current portion | 2,513,817 | 2,429,167 |
Other Long-term Liabilities | 170,391 | 317,376 |
Deferred Income Taxes | 271,504 | 263,005 |
Commitments and Contingencies | ||
Redeemable Noncontrolling Interests | 95,630 | 95,160 |
Equity: | ||
Preferred stock (par value $0.01; authorized 10,000,000 shares; none issued and outstanding) | 0 | 0 |
Common stock (par value $0.01; authorized 400,000,000 shares; issued and outstanding 291,584,999 and 290,830,296 shares as of March 31, 2023 and December 31, 2022, respectively) | 2,916 | 2,908 |
Additional paid-in capital | 4,459,265 | 4,468,035 |
(Distributions in excess of earnings) Earnings in excess of distributions | (3,510,949) | (3,392,272) |
Accumulated other comprehensive items, net | (405,768) | (442,003) |
Total Iron Mountain Incorporated Stockholders' Equity | 545,464 | 636,668 |
Noncontrolling Interests | 125 | 125 |
Total Equity | 545,589 | 636,793 |
Total Liabilities and Equity | $ 16,465,709 | $ 16,140,514 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 61,039 | $ 54,143 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized shares (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, issued shares (in shares) | 0 | 0 |
Preferred stock, outstanding shares (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares (in shares) | 400,000,000 | 400,000,000 |
Common stock, issued shares (in shares) | 291,584,999 | 290,830,296 |
Common stock, outstanding shares (in shares) | 291,584,999 | 290,830,296 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues: | ||
Total Revenues | $ 1,314,349 | $ 1,248,046 |
Operating Expenses: | ||
Cost of sales (excluding depreciation and amortization) | 571,626 | 546,622 |
Selling, general and administrative | 294,520 | 280,723 |
Depreciation and amortization | 182,094 | 183,615 |
Acquisition and Integration Costs | 1,595 | 15,661 |
Restructuring and other transformation | 36,913 | 0 |
(Gain) Loss on disposal/write-down of property, plant and equipment, net | (13,061) | (705) |
Total Operating Expenses | 1,073,687 | 1,025,916 |
Operating Income (Loss) | 240,662 | 222,130 |
Interest Expense, Net (includes Interest Income of $2,907 and $1,648 for the three months ended March 31, 2023 and 2022, respectively) | 137,169 | 114,442 |
Other Expense (Income), Net | 21,200 | 55,901 |
Net Income (Loss) Before Provision (Benefit) for Income Taxes | 82,293 | 51,787 |
Provision (Benefit) for Income Taxes | 16,758 | 10,080 |
Net Income (Loss) | 65,535 | 41,707 |
Less: Net Income (Loss) Attributable to Noncontrolling Interests | 940 | (592) |
Net Income (Loss) Attributable to Iron Mountain Incorporated | $ 64,595 | $ 42,299 |
Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated: | ||
Basic (in dollars per share) | $ 0.22 | $ 0.15 |
Diluted (in dollars per share) | $ 0.22 | $ 0.14 |
Weighted average common shares outstanding-basic (in shares) | 291,442,000 | 290,328,000 |
Weighted average common shares outstanding-diluted (in shares) | 293,049,000 | 291,845,602 |
Storage Rental | ||
Revenues: | ||
Total Revenues | $ 810,089 | $ 751,070 |
Service | ||
Revenues: | ||
Total Revenues | $ 504,260 | $ 496,976 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Interest income | $ 2,907 | $ 1,648 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income (Loss) | $ 65,535 | $ 41,707 |
Other Comprehensive Income (Loss): | ||
Other comprehensive income (loss) | 40,226 | 27,453 |
Change in Fair Value of Derivative Instruments | (3,442) | 16,766 |
Total Other Comprehensive Income (Loss): | 36,784 | 44,219 |
Comprehensive Income (Loss) | 102,319 | 85,926 |
Comprehensive Income (Loss) Attributable to Noncontrolling Interests | 1,489 | (362) |
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated | $ 100,830 | $ 86,288 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | 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 |
Beginning of Period at Dec. 31, 2021 | $ 857,068 | $ 2,898 | $ 4,412,553 | $ (3,221,152) | $ (338,347) | $ 1,116 | |
Beginning balance (in shares) at Dec. 31, 2021 | 289,757,061 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance and net settlement of shares under employee stock purchase plan and option plans and stock-based compensation | (1,502) | $ 8 | (1,510) | ||||
Issuance and net settlement of shares under employee stock purchase plan and option plans and stock-based compensation (in shares) | 793,379 | ||||||
Changes in equity related to noncontrolling interests | (1,992) | (1,992) | $ 1,992 | ||||
Parent cash dividends declared | (181,023) | (181,023) | |||||
Other comprehensive income (loss) | 43,921 | 43,989 | (68) | ||||
Net income (loss) | 42,299 | 42,299 | |||||
Noncontrolling interests dividends | (681) | ||||||
End of period at Mar. 31, 2022 | 758,771 | $ 2,906 | 4,409,051 | (3,359,876) | (294,358) | 1,048 | |
Ending balance (in shares) at Mar. 31, 2022 | 290,550,440 | ||||||
Beginning of redeemable noncontrolling interest at Dec. 31, 2021 | 72,411 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Changes in equity related to noncontrolling interests | (1,992) | (1,992) | 1,992 | ||||
Other comprehensive income (loss) | 298 | ||||||
Net income (loss) | (592) | ||||||
Noncontrolling interests dividends | (681) | ||||||
Ending of redeemable noncontrolling interest at Mar. 31, 2022 | 73,428 | ||||||
Beginning of Period at Dec. 31, 2022 | $ 636,793 | $ 2,908 | 4,468,035 | (3,392,272) | (442,003) | 125 | |
Beginning balance (in shares) at Dec. 31, 2022 | 290,830,296 | 290,830,296 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance and net settlement of shares under employee stock purchase plan and option plans and stock-based compensation | $ (8,762) | $ 8 | (8,770) | ||||
Issuance and net settlement of shares under employee stock purchase plan and option plans and stock-based compensation (in shares) | 754,703 | ||||||
Parent cash dividends declared | (183,272) | (183,272) | |||||
Other comprehensive income (loss) | 36,235 | 36,235 | |||||
Net income (loss) | 64,595 | 64,595 | |||||
Noncontrolling interests dividends | (1,019) | ||||||
End of period at Mar. 31, 2023 | $ 545,589 | $ 2,916 | $ 4,459,265 | $ (3,510,949) | $ (405,768) | $ 125 | |
Ending balance (in shares) at Mar. 31, 2023 | 291,584,999 | 291,584,999 | |||||
Beginning of redeemable noncontrolling interest at Dec. 31, 2022 | $ 95,160 | 95,160 | |||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Other comprehensive income (loss) | 549 | ||||||
Net income (loss) | 940 | ||||||
Noncontrolling interests dividends | (1,019) | ||||||
Ending of redeemable noncontrolling interest at Mar. 31, 2023 | $ 95,630 | $ 95,630 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Flows from Operating Activities: | ||
Net income (loss) | $ 65,535 | $ 41,707 |
Adjustments to reconcile net income (loss) to cash flows from operating activities: | ||
Depreciation | 120,066 | 120,393 |
Amortization (includes amortization of deferred financing costs and discounts of $4,332 and $4,389 for the three months ended March 31, 2023 and 2022, respectively) | 66,360 | 67,611 |
Revenue reduction associated with amortization of customer inducements and above- and below-market leases | 1,760 | 1,860 |
Stock-based compensation expense | 12,509 | 11,341 |
Provision (benefit) for deferred income taxes | 4,183 | (10,142) |
Loss on early extinguishment of debt | 0 | 671 |
(Gain) loss on disposal/write-down of property, plant and equipment, net | (13,061) | (705) |
Loss (gain) on divestments and deconsolidations | 0 | 105,825 |
Gain associated with Clutter Transaction | 0 | (35,821) |
Foreign currency transactions and other, net | 34,435 | (7,219) |
(Increase) decrease in assets | (33,530) | (105,321) |
(Decrease) increase in liabilities | (129,449) | (135,694) |
Cash Flows from Operating Activities | 128,808 | 54,506 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (265,906) | (161,050) |
Cash paid for acquisitions, net of cash acquired | (1,094) | (717,907) |
Customer inducements | (1,357) | (1,913) |
Contract fulfillment costs | (24,014) | (14,237) |
Investments in joint ventures and other investments | (15,830) | 0 |
Proceeds from sales of property and equipment and other, net | 35,658 | 5,353 |
Cash Flows from Investing Activities | (272,543) | (889,754) |
Cash Flows from Financing Activities: | ||
Repayment of revolving credit facility, term loan facilities and other debt | (4,649,926) | (2,278,884) |
Proceeds from revolving credit facility, term loan facilities and other debt | 5,008,631 | 3,254,197 |
Debt repayment and equity distribution to noncontrolling interests | (1,019) | (681) |
Parent cash dividends | (186,514) | (184,361) |
Net (payments) proceeds associated with employee stock-based awards | (21,271) | (12,843) |
Other, net | 0 | (5,875) |
Cash Flows from Financing Activities | 149,901 | 771,553 |
Effect of Exchange Rates on Cash and Cash Equivalents | (1,521) | 3,527 |
Increase (decrease) in Cash and Cash Equivalents | 4,645 | (60,168) |
Cash and Cash Equivalents, Beginning of Period | 141,797 | 255,828 |
Cash and Cash Equivalents, End of Period | 146,442 | 195,660 |
Supplemental Information: | ||
Cash Paid for Interest | 204,902 | 179,079 |
Cash Paid for Income Taxes, Net | 18,629 | 19,277 |
Non-Cash Investing and Financing Activities: | ||
Financing Leases | 20,194 | 5,190 |
Accrued Capital Expenditures | 207,425 | 78,466 |
Deferred Purchase Obligations | 197,222 | 276,300 |
Dividends Payable | $ 191,030 | $ 187,220 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Cash Flows [Abstract] | ||
Deferred financing costs and discount included in amortization | $ 4,332 | $ 4,389 |
General
General | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | GENERAL The unaudited condensed consolidated financial statements of Iron Mountain Incorporated, a Delaware corporation, and its subsidiaries ("we" or "us"), have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the "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 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. Certain prior year financial statement amounts have been reclassified to conform to the current year presentation. 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, 2022 included in our Annual Report on Form 10-K filed with the SEC on February 23, 2023 (our "Annual Report"). In September 2022, we announced a global program designed to accelerate the growth of our business ("Project Matterhorn"). See Note 11. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash on hand and cash invested in highly liquid short-term securities, which have remaining maturities at the date of purchase of less than 90 days. Cash and cash equivalents are carried at cost, which approximates fair value. B. ACCOUNTS RECEIVABLE We maintain an allowance for doubtful accounts and a credit memo reserve for estimated losses resulting from the potential inability of our customers to make required payments and potential disputes regarding billing and service issues. The rollforward of the allowance for doubtful accounts and credit memo reserves for the three months ended March 31, 2023 is as follows: Balance as of December 31, 2022 $ 54,143 Credit memos charged to revenue 23,392 Allowance for bad debts charged to expense 10,242 Deductions and other (1) (26,738) Balance as of March 31, 2023 $ 61,039 (1) Primarily consists of the issuance of credit memos, the write-off of accounts receivable and the impact associated with currency translation adjustments. C. LEASES We lease facilities for certain warehouses, data centers and office space. We also have land leases, including those on which certain facilities are located. Operating and financing lease right-of-use assets and lease liabilities as of March 31, 2023 and December 31, 2022 are as follows: DESCRIPTION MARCH 31, 2023 DECEMBER 31, 2022 Assets: Operating lease right-of-use assets $ 2,666,951 $ 2,583,704 Financing lease right-of-use assets, net of accumulated depreciation (1) 250,216 251,690 Liabilities: Current Operating lease liabilities $ 293,795 $ 288,738 Financing lease liabilities (1) 47,516 43,857 Long-term Operating lease liabilities $ 2,513,817 $ 2,429,167 Financing lease liabilities (1) 294,517 289,048 (1) Financing lease right-of-use assets, current financing lease liabilities and long-term financing lease liabilities are included within Property, Plant and Equipment, Net, Current portion of long-term debt and Long-term Debt, net of current portion, respectively, within our Condensed Consolidated Balance Sheets. The components of the lease expense for the three months ended March 31, 2023 and 2022 are as follows: THREE MONTHS ENDED MARCH 31, DESCRIPTION 2023 2022 Operating lease cost (1) $ 155,873 $ 143,530 Financing lease cost: Depreciation of financing lease right-of-use assets $ 10,008 $ 11,454 Interest expense for financing lease liabilities 4,341 4,678 (1) Operating lease cost, the majority of which is included in Cost of sales, includes variable lease costs of $31,580 and $30,508 for the three months ended March 31, 2023 and 2022, respectively. Other information: Supplemental cash flow information relating to our leases for the three months ended March 31, 2023 and 2022 is as follows: THREE MONTHS ENDED MARCH 31, CASH PAID FOR AMOUNTS INCLUDED IN MEASUREMENT OF LEASE LIABILITIES: 2023 2022 Operating cash flows used in operating leases $ 108,723 $ 101,605 Operating cash flows used in financing leases (interest) 4,341 4,678 Financing cash flows used in financing leases 11,714 10,362 NON-CASH ITEMS: Operating lease modifications and reassessments $ 18,163 $ 23,767 New operating leases (including acquisitions and sale-leaseback transactions) 113,853 125,902 In addition to the leases signed but not yet commenced that were disclosed in Note 2.j. to Notes to Consolidated Financial Statements included in our Annual Report, we entered into an operating lease in March 2023 that is expected to commence in July 2024, with an initial lease term of 25 years. The total undiscounted minimum lease payments for this lease are approximately $170,100. D. GOODWILL Our reporting units as of December 31, 2022 are described in detail in Note 2.l. to Notes to Consolidated Financial Statements included in our Annual Report. The changes in the carrying value of goodwill attributable to each reportable segment for the three months ended March 31, 2023 are as follows: GLOBAL RIM BUSINESS GLOBAL DATA CENTER BUSINESS CORPORATE AND OTHER TOTAL CONSOLIDATED Goodwill balance, net of accumulated amortization as of December 31, 2022 $ 3,852,946 $ 418,502 $ 611,286 $ 4,882,734 Fair value and other adjustments 71 — 2,333 2,404 Currency effects 9,239 2,064 320 11,623 Goodwill balance, net of accumulated amortization as of March 31, 2023 $ 3,862,256 $ 420,566 $ 613,939 $ 4,896,761 Accumulated goodwill impairment balance as of March 31, 2023 $ 132,409 $ — $ 26,011 $ 158,420 E. FAIR VALUE MEASUREMENTS The assets and liabilities carried at fair value measured on a recurring basis as of March 31, 2023 and December 31, 2022 are as follows: FAIR VALUE MEASUREMENTS AT MARCH 31, 2023 USING DESCRIPTION TOTAL CARRYING QUOTED PRICES IN SIGNIFICANT OTHER SIGNIFICANT Money Market Funds $ 9,786 $ — $ 9,786 $ — Time Deposits 1,721 — 1,721 — Trading Securities 9,380 9,347 33 — Derivative Assets 42,105 — 42,105 — Derivative Liabilities 3,443 — 3,443 — Deferred Purchase Obligations (1) 197,222 — — 197,222 FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2022 USING DESCRIPTION TOTAL CARRYING QUOTED PRICES IN SIGNIFICANT OTHER SIGNIFICANT Money Market Funds $ 11,311 $ — $ 11,311 $ — Time Deposits 1,102 — 1,102 — Trading Securities 9,462 9,426 36 — Derivative Assets 51,396 — 51,396 — Derivative Liabilities 489 — 489 — Deferred Purchase Obligations (1) 193,033 — — 193,033 (1) Primarily relates to the fair value of the Deferred Purchase Obligation (as defined in Note 3 to Notes to Consolidated Financial Statements included in our Annual Report) associated with the ITRenew Transaction (as defined below in Note 3), which was determined utilizing a Monte-Carlo model and takes into account our forecasted projections as it relates to the underlying performance of the business. The Monte-Carlo simulation model incorporates assumptions as to expected gross profits over the applicable achievement period, including adjustments for the volatility of timing and amount of the associated revenue and costs, as well as discount rates that account for the risk of the underlying arrangement and overall market risks. Any material change to these assumptions may result in a significantly higher or lower fair value of the Deferred Purchase Obligation. The change in value of the Deferred Purchase Obligation during the three months ended March 31, 2023 was driven by the accretion of the obligation to present value. There were no material items that were measured at fair value on a non-recurring basis at March 31, 2023 and December 31, 2022 other than those disclosed in Note 2.p. to Notes to Consolidated Financial Statements included in our Annual Report. F. ACCUMULATED OTHER COMPREHENSIVE ITEMS, NET The changes in Accumulated other comprehensive items, net for the three months ended March 31, 2023 and 2022 are as follows: THREE MONTHS ENDED MARCH 31, 2023 THREE MONTHS ENDED MARCH 31, 2022 FOREIGN CHANGE IN FAIR VALUE OF TOTAL FOREIGN CHANGE IN FAIR VALUE OF TOTAL Beginning of Period $ (454,509) $ 12,506 $ (442,003) $ (341,024) $ 2,677 $ (338,347) Other comprehensive income (loss): Foreign currency translation and other adjustments 39,677 — 39,677 27,223 — 27,223 Change in fair value of derivative instruments — (3,442) (3,442) — 16,766 16,766 Total other comprehensive income (loss) 39,677 (3,442) 36,235 27,223 16,766 43,989 End of Period $ (414,832) $ 9,064 $ (405,768) $ (313,801) $ 19,443 $ (294,358) G. REVENUES The costs associated with the initial movement of customer records into physical storage and certain commissions are considered costs to obtain or fulfill customer contracts (collectively, "Contract Fulfillment Costs"). Contract Fulfillment Costs as of March 31, 2023 and December 31, 2022 are as follows: MARCH 31, 2023 DECEMBER 31, 2022 GROSS ACCUMULATED NET GROSS ACCUMULATED NET Intake Costs asset $ 71,426 $ (45,700) $ 25,726 $ 68,345 $ (42,132) $ 26,213 Commissions asset 142,763 (63,244) 79,519 133,145 (58,949) 74,196 Deferred revenue liabilities are reflected in our Condensed Consolidated Balance Sheets as follows: DESCRIPTION LOCATION IN BALANCE SHEET MARCH 31, 2023 DECEMBER 31, 2022 Deferred revenue - Current Deferred revenue $ 335,393 $ 328,910 Deferred revenue - Long-term Other Long-term Liabilities 29,482 32,960 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 Accounting Standards Codification ("ASC") No. 842 ("ASC 842"), Leases, as amended. Storage rental revenue, including revenue associated with power and connectivity, associated with our Global Data Center Business for the three months ended March 31, 2023 and 2022 is as follows: THREE MONTHS ENDED MARCH 31, 2023 2022 Storage rental revenue (1) $ 107,435 $ 87,451 H. STOCK-BASED COMPENSATION Our stock-based compensation expense includes the cost of stock options, restricted stock units ("RSUs") and performance units ("PUs") (together, the "Employee Stock-Based Awards"). STOCK-BASED COMPENSATION EXPENSE Stock-based compensation expense for the Employee Stock-Based Awards for the three months ended March 31, 2023 and 2022 is as follows: THREE MONTHS ENDED MARCH 31, 2023 2022 Stock-based compensation expense $ 12,509 $ 11,341 As of March 31, 2023, unrecognized compensation cost related to the unvested portion of our Employee Stock-Based Awards is $115,329. I. ACQUISITION AND INTEGRATION COSTS Acquisition and integration costs represent operating expenditures directly associated with the closing and integration activities of our business acquisitions that have closed, or are highly probable of closing, and include (i) advisory, legal and professional fees to complete business acquisitions and (ii) costs to integrate acquired businesses into our existing operations, including move, severance and system integration costs (collectively, "Acquisition and Integration Costs"). Total Acquisition and Integration Costs were $1,595 and $15,661 for the three months ended March 31, 2023 and 2022, respectively. J. (GAIN) LOSS ON DISPOSAL/WRITE-DOWN OF PROPERTY, PLANT AND EQUIPMENT, NET (Gain) loss on disposal/write-down of property, plant and equipment, net for the three months ended March 31, 2023 and 2022 is as follows: THREE MONTHS ENDED MARCH 31, 2023 (1) 2022 (Gain) Loss on disposal/write-down of property, plant and equipment, net $ (13,061) $ (705) (1) The gains for the three months ended March 31, 2023 primarily consist of a gain of approximately $18,500 associated with a sale-leaseback transaction of a facility in Singapore, as part of our program to monetize a small portion of our industrial assets through sale and sale-leaseback transactions. The terms for this lease are consistent with the terms of our lease portfolio, which are disclosed in detail in Note 2.j. to Notes to Consolidated Financial Statements included in our Annual Report. K. OTHER EXPENSE (INCOME), NET Other expense (income), net for the three months ended March 31, 2023 and 2022 consists of the following: THREE MONTHS ENDED MARCH 31, DESCRIPTION 2023 2022 Foreign currency transaction losses (gains), net $ 14,424 $ (13,201) Debt extinguishment expense — 671 Other, net (1) 6,776 68,431 Other Expense (Income), Net $ 21,200 $ 55,901 (1) Other, net for the three months ended March 31, 2022 consists primarily of (i) a loss of approximately $105,800 associated with the OSG Deconsolidation (as defined in Note 4 to Notes to Consolidated Financial Statements included in our Annual Report), partially offset by (ii) a gain of approximately $35,800 associated with the Clutter Transaction (as defined in Note 5 to Notes to Consolidated Financial Statements included in our Annual Report). L. 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 months ended March 31, 2023 and 2022 are as follows: THREE MONTHS ENDED MARCH 31, 2023 (1) 2022 (2) Effective Tax Rate 20.4 % 19.5 % (1) The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three months ended March 31, 2023 were the benefits derived from the dividends paid deduction and the differences in the tax rates to which our foreign earnings are subject. (2) The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three months ended March 31, 2022 were the benefits derived from the dividends paid deduction, the differences in the tax rates to which our foreign earnings are subject, and a release of valuation allowances on deferred tax assets of our U.S. taxable REIT subsidiaries of approximately $9,900 as a result of our acquisition of Intercept Parent, Inc. ("ITRenew"). M. INCOME (LOSS) PER SHARE—BASIC AND DILUTED The calculation of basic and diluted income (loss) per share for the three months ended March 31, 2023 and 2022 are as follows: THREE MONTHS ENDED MARCH 31, 2023 2022 Net Income (Loss) $ 65,535 $ 41,707 Less: Net Income (Loss) Attributable to Noncontrolling Interests 940 (592) Net Income (Loss) Attributable to Iron Mountain Incorporated (utilized in numerator of Earnings Per Share calculation) $ 64,595 $ 42,299 Weighted-average shares—basic 291,442,000 290,328,000 Effect of dilutive potential stock options 1,216,000 995,625 Effect of dilutive potential RSUs and PUs 391,000 521,977 Weighted-average shares—diluted 293,049,000 291,845,602 Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated: Basic $ 0.22 $ 0.15 Diluted $ 0.22 $ 0.14 Antidilutive stock options, RSUs and PUs, excluded from the calculation 145,730 755,580 N. RECENT ACCOUNTING PRONOUNCEMENTS In December 2021, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") No. 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ("ASU 2021-08"). ASU 2021-08 requires that an entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers, and for the related revenue contracts in accordance with ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as if it had originated the contracts. We adopted ASU 2021-08 on January 1, 2023 on a prospective basis, and there was no material impact on our condensed consolidated financial statements. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | ITRENEW PRO FORMA FINANCIAL INFORMATION On January 25, 2022, in order to expand our asset lifecycle management operations, we acquired an approximately 80% interest in ITRenew at an agreed upon purchase price of $725,000, subject to certain working capital adjustments at, and subsequent to, the closing (the "ITRenew Transaction"). The unaudited consolidated pro forma financial information (the "Pro Forma Financial Information") below summarizes the combined results of Iron Mountain and ITRenew on a pro forma basis as if the ITRenew Transaction had occurred on January 1, 2021. The Pro Forma Financial Information is presented for informational purposes and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place on January 1, 2021. The Pro Forma Financial Information, for the periods presented, includes purchase accounting adjustments (including amortization of acquired customer and supplier intangible assets and depreciation of acquired property, plant and equipment) and related tax effects. We and ITRenew collectively incurred $59,370 of operating expenditures to complete the ITRenew Transaction (including advisory and professional fees). These operating expenditures have been reflected within the results of operations in the Pro Forma Financial Information as if they were incurred on January 1, 2021. THREE MONTHS ENDED MARCH 31, 2022 Total Revenues $ 1,266,020 Income from Continuing Operations $ 41,838 In addition to our acquisition of ITRenew, we completed certain other acquisitions in 2022. The Pro Forma Financial Information does not reflect these acquisitions due to the insignificant impact of these acquisitions on our consolidated results of operations. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2023 | |
Investments, All Other Investments [Abstract] | |
Investments | INVESTMENTS In April 2021, we closed on an agreement to form a joint venture (the "Web Werks JV") with the shareholders of Web Werks India Private Limited ("Web Werks"), a colocation data center provider in India. Through December 31, 2022, we made two investments totaling approximately 7,500,000 Indian rupees (or approximately $96,200, based upon the exchange rates between the United States dollar and Indian rupee on the closing date of each investment) in exchange for a noncontrolling interest in the form of convertible preference shares in the Web Werks JV. Under the terms of the original Web Werks JV shareholder agreement, we were required to make an additional investment of 3,750,000 Indian rupees by May 2023. In April 2023, the original Web Werks JV shareholder agreement was amended to extend the period by which the investment is required to be made to May 2024. The following joint ventures are accounted for as equity method investments and are presented as a component of Other within Other assets, net in our Condensed Consolidated Balance Sheets. The carrying values and equity interests in our joint ventures at March 31, 2023 and December 31, 2022 are as follows: MARCH 31, 2023 DECEMBER 31, 2022 CARRYING VALUE EQUITY INTEREST CARRYING VALUE EQUITY INTEREST Web Werks JV $ 98,637 53.58 % $ 98,278 53.58 % Joint venture with AGC Equity Partners (the "Frankfurt JV") 36,579 20.00 % 37,194 20.00 % Joint venture with Clutter, Inc. (the "Clutter JV") 50,712 26.73 % 54,172 26.73 % Additionally, we have a loan receivable with the Frankfurt JV of approximately $22,800, which is included as a component of Other within Other assets, net within our Condensed Consolidated Balance Sheet at March 31, 2023. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative instruments we are party to include: (i) interest rate swap agreements (which are designated as cash flow hedges) and (ii) cross-currency swap agreements (which are designated as net investment hedges). INTEREST RATE SWAP AGREEMENTS DESIGNATED AS CASH FLOW HEDGES In November 2022, we entered into a forward-starting interest rate swap agreement to limit our exposure to changes in interest rates on future borrowings under our Virginia Credit Agreement (as defined in Note 7 to Notes to Consolidated Financial Statements included in our Annual Report). The forward-starting interest rate swap agreement commences in July 2023 and expires in October 2025. As of both March 31, 2023 and December 31, 2022, we have $4,800 in notional value outstanding on this forward-starting interest rate swap agreement. In July 2019, we entered into forward-starting interest rate swap agreements to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness. These forward-starting interest rate swap agreements commenced in March 2022. As of both March 31, 2023 and December 31, 2022, we have $350,000 in notional value outstanding on these interest rate swap agreements, which expire in March 2024. We have designated each of the interest rate swap agreements described above as cash flow hedges. These interest rate swap agreements are marked to market at the end of each reporting period, representing the fair values of the interest rate swap agreements, and any changes in fair value are recognized as a component of Accumulated other comprehensive items, net. Unrealized gains are recognized as assets, while unrealized losses are recognized as liabilities. CROSS-CURRENCY SWAP AGREEMENTS DESIGNATED AS A HEDGE OF NET INVESTMENT We utilize cross-currency interest rate swaps to hedge the variability of exchange rate impacts between the United States dollar and the Euro. As of both March 31, 2023 and December 31, 2022, we have approximately $469,200 in notional value outstanding on cross-currency interest rate swaps with maturity dates ranging from August 2023 through February 2026. We have designated these cross-currency swap agreements as hedges of net investments in certain of our Euro denominated subsidiaries and they require an exchange of the notional amounts at maturity. These cross-currency swap agreements are marked to market at the end of each reporting period, representing the fair values of the cross-currency swap agreements, and any changes in fair value are recognized as a component of Accumulated other comprehensive items, net. Unrealized gains are recognized as assets while unrealized losses are recognized as liabilities. The excluded component of our cross-currency swap agreements is recorded in Accumulated other comprehensive items, net and amortized to interest expense on a straight-line basis. The fair value of derivative instruments recognized in our Condensed Consolidated Balance Sheets at March 31, 2023 and December 31, 2022, by derivative instrument, are as follows: MARCH 31, 2023 DECEMBER 31, 2022 DERIVATIVE INSTRUMENTS (1) Assets Liabilities Assets Liabilities Cash Flow Hedges (2) Interest rate swap agreements $ 10,215 $ 1,151 $ 12,995 $ 489 Net Investment Hedges (3) Cross-currency swap agreements 31,890 2,292 38,401 — (1) Our derivative assets are included as a component of (i) Prepaid expenses and other or (ii) Other within Other assets, net and our derivative liabilities are included as a component of (i) Accrued expenses and other current liabilities or (ii) Other long-term liabilities in our Condensed Consolidated Balance Sheets. As of March 31, 2023, $11,538 is included within Prepaid expenses and other, $30,567 is included within Other assets, $2,292 is included within Accrued expense and other current liabilities and $1,151 is included within Other long-term liabilities. As of December 31, 2022, $2,606 is included within Prepaid expenses and other, $48,790 is included within Other assets, and $489 is included within Other long-term liabilities. (2) As of March 31, 2023, cumulative net gains of $9,064 are recorded within Accumulated other comprehensive items, net associated with these interest rate swap agreements. (3) As of March 31, 2023, cumulative net gains of $29,598 are recorded within Accumulated other comprehensive items, net associated with these cross-currency swap agreements. These cumulative net gains are offset by $14,934 related to the excluded component of our cross-currency swap agreements. Unrealized (losses) gains recognized in Accumulated other comprehensive income during the three months ended March 31, 2023 and 2022, by derivative instrument, are as follows: THREE MONTHS ENDED MARCH 31, DERIVATIVE INSTRUMENTS 2023 2022 Cash Flow Hedges Interest rate swap agreements $ (3,442) $ 11,470 Net Investment Hedges Cross-currency swap agreements (8,803) 5,296 Cross-currency swap agreements (excluded component) 5,834 — (Losses) gains recognized in Net income during the three months ended March 31, 2023 and 2022, by derivative instrument, are as follows: THREE MONTHS ENDED MARCH 31, DERIVATIVE INSTRUMENTS Location of (loss) gain 2023 2022 Net Investment Hedges Cross-currency swap agreements (excluded component) Interest expense $ (5,834) $ — |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Long-term debt is as follows: MARCH 31, 2023 DECEMBER 31, 2022 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) $ 1,439,000 $ (5,687) $ 1,433,313 $ 1,439,000 $ 1,072,200 $ (6,790) $ 1,065,410 $ 1,072,200 Term Loan A (1) 237,500 — 237,500 237,500 240,625 — 240,625 240,625 Term Loan B (1) 664,379 (3,434) 660,945 665,000 666,073 (3,747) 662,326 666,750 Australian Dollar Term Loan 197,929 (585) 197,344 199,746 202,641 (633) 202,008 204,623 UK Bilateral Revolving Credit Facility 173,153 — 173,153 173,153 169,361 — 169,361 169,361 3 7 / 8 % GBP Senior Notes due 2025 (the "GBP Notes") 494,722 (2,413) 492,309 467,572 483,888 (2,589) 481,299 445,206 4 7 / 8 % Senior Notes due 2027 (the "4 7 / 8 % Notes due 2027") (2) 1,000,000 (6,399) 993,601 942,500 1,000,000 (6,754) 993,246 917,500 5 1 / 4 % Senior Notes due 2028 (the "5 1 / 4 % Notes due 2028") (2) 825,000 (5,904) 819,096 781,688 825,000 (6,200) 818,800 754,875 5% Senior Notes due 2028 (the "5% Notes due 2028") (2) 500,000 (3,859) 496,141 461,250 500,000 (4,039) 495,961 450,000 4 7 / 8 % Senior Notes due 2029 (the "4 7 / 8 % Notes due 2029") (2) 1,000,000 (9,403) 990,597 897,500 1,000,000 (9,764) 990,236 865,000 5 1 / 4 % Senior Notes due 2030 (the "5 1 / 4 % Notes due 2030") (2) 1,300,000 (11,031) 1,288,969 1,170,000 1,300,000 (11,407) 1,288,593 1,111,500 4 1 / 2 % Senior Notes due 2031 (the "4 1 / 2 % Notes") (2) 1,100,000 (9,850) 1,090,150 937,750 1,100,000 (10,161) 1,089,839 891,000 5% Senior Notes due 2032 (the "5% Notes due 2032") 750,000 (12,185) 737,815 643,125 750,000 (12,511) 737,489 622,500 5 5 / 8 % Senior Notes due 2032 (the "5 5 / 8 % Notes") (2) 600,000 (5,421) 594,579 538,500 600,000 (5,566) 594,434 520,500 Real Estate Mortgages, Financing Lease Liabilities and Other 434,283 (522) 433,761 434,283 425,777 (578) 425,199 425,777 Accounts Receivable Securitization Program 325,000 (477) 324,523 325,000 314,700 (531) 314,169 314,700 Total Long-term Debt 11,040,966 (77,170) 10,963,796 10,650,265 (81,270) 10,568,995 Less Current Portion (101,608) — (101,608) (87,546) — (87,546) Long-term Debt, Net of Current Portion $ 10,939,358 $ (77,170) $ 10,862,188 $ 10,562,719 $ (81,270) $ 10,481,449 (1) Collectively, the “Credit Agreement”. The Credit Agreement consists of a revolving credit facility (the “Revolving Credit Facility”), a term loan A (the “Term Loan A”) and a term loan B (the "Term Loan B"). The Revolving Credit Facility and the Term Loan A are scheduled to mature on March 18, 2027. The Term Loan B is scheduled to mature on January 2, 2026. The remaining amount available for borrowing under the Revolving Credit Facility as of March 31, 2023 was $807,146 (which amount represents the maximum availability as of such date). The weighted average interest rate in effect under the Revolving Credit Facility was 6.6% and 6.2% as of March 31, 2023 and December 31, 2022, respectively. (2) Collectively, the "Parent Notes". See Note 7 to Notes to Consolidated Financial Statements included in our Annual Report for additional information regarding our long-term debt, including the direct obligors of each of our debt instruments as well as information regarding the fair value of our debt instruments (including the levels of the fair value hierarchy used to determine the fair value of our debt instruments). The levels of the fair value hierarchy used to determine the fair value of our debt as of March 31, 2023 are consistent with the levels of the fair value hierarchy used to determine the fair value of our debt as of December 31, 2022 (which are disclosed in our Annual Report). LETTERS OF CREDIT As of March 31, 2023, we had outstanding letters of credit totaling $39,825, of which $3,854 reduce our borrowing capacity under the Revolving Credit Facility. The letters of credit expire at various dates between June 2023 and July 2025. DEBT COVENANTS The Credit Agreement, our bond indentures and other agreements governing our indebtedness contain certain restrictive financial and operating covenants, including covenants that restrict our ability to complete acquisitions, pay cash dividends, incur indebtedness, make investments, sell assets and take other specified corporate actions. The covenants do not contain a rating trigger. Therefore, a change in our debt rating would not trigger a default under the Credit Agreement, our bond indentures or other agreements governing our indebtedness. The Credit Agreement requires that we satisfy a net total lease adjusted leverage ratio and a fixed charge coverage ratio on a quarterly basis and our bond indentures require that, among other things, we satisfy a leverage ratio (not lease adjusted) or a fixed charge coverage ratio (not lease adjusted), as a condition to taking actions such as paying dividends and incurring indebtedness. The Credit Agreement uses earnings before interest, taxes, depreciation and amortization and rent expense ("EBITDAR") based calculations and the bond indentures use earnings before interest, taxes, depreciation and amortization ("EBITDA") based calculations as the primary measures of financial performance for purposes of calculating leverage and fixed charge coverage ratios. The EBITDAR- and EBITDA-based leverage calculations include our consolidated subsidiaries, other than those we have designated as "Unrestricted Subsidiaries" as defined in the Credit Agreement and bond indentures. Generally, the Credit Agreement and the bond indentures use a trailing four fiscal quarter basis for purposes of the relevant calculations and require certain adjustments and exclusions for purposes of those calculations, which make the calculation of financial performance for purposes of those calculations under the Credit Agreement and bond indentures not directly comparable to Adjusted EBITDA as presented herein. We are in compliance with our leverage and fixed charge coverage ratios under the Credit Agreement, our bond indentures and other agreements governing our indebtedness as of March 31, 2023. Noncompliance with these leverage and fixed charge coverage ratios would have a material adverse effect on our financial condition and liquidity. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES We are involved in litigation from time to time in the ordinary course of business, including litigation arising from damage to customer assets in our facilities caused by fires and other natural disasters. While the outcome of litigation is inherently uncertain, we do not believe any current litigation will have a material adverse effect on our consolidated financial condition, results of operations or cash flows. We have estimated a reasonably possible range for all loss contingencies and believe it is reasonably possible that we could incur aggregate losses in addition to amounts currently accrued for all matters up to an additional $20,500 over the next several years, of which certain amounts would be covered by insurance or indemnity arrangement. |
Stockholders' Equity Matters
Stockholders' Equity Matters | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity Matters | In fiscal year 2022 and the three months ended March 31, 2023, our board of directors declared the following dividends: DECLARATION DATE DIVIDEND RECORD DATE TOTAL PAYMENT DATE February 24, 2022 $ 0.6185 March 15, 2022 $ 179,661 April 6, 2022 April 28, 2022 0.6185 June 15, 2022 179,781 July 6, 2022 August 4, 2022 0.6185 September 15, 2022 179,790 October 4, 2022 November 3, 2022 0.6185 December 15, 2022 179,866 January 5, 2023 February 23, 2023 0.6185 March 15, 2023 180,339 April 5, 2023 On May 4, 2023, we declared a dividend to our stockholders of record as of June 15, 2023 of $0.6185 per share, payable on July 6, 2023. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION Our reportable segments as of December 31, 2022 are described in Note 11 to Notes to Consolidated Financial Statements included in our Annual Report and are as follows: • Global RIM Business • Global Data Center Business • Corporate and Other An analysis of our business segment information and reconciliation to the accompanying Condensed Consolidated Financial Statements for the three months ended March 31, 2023 and 2022 is as follows: THREE MONTHS ENDED MARCH 31, 2023 2022 Global RIM Business Total Revenues $ 1,126,526 $ 1,048,891 Adjusted EBITDA 477,784 448,795 Global Data Center Business Total Revenues $ 112,305 $ 96,987 Adjusted EBITDA 50,635 41,977 Corporate and Other Total Revenues $ 75,518 $ 102,168 Adjusted EBITDA (67,611) (59,778) Total Consolidated Total Revenues $ 1,314,349 $ 1,248,046 Adjusted EBITDA 460,808 430,994 Adjusted EBITDA for each segment is defined as net income (loss) 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 excluding certain items we do not believe to be indicative of our core operating results, specifically: EXCLUDED • Acquisition and Integration Costs • Restructuring and other transformation • (Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate) • Other expense (income), net • Stock-based compensation expense Internally, we use Adjusted EBITDA as the basis for evaluating the performance of, and allocating resources to, our operating segments. A reconciliation of Net Income (Loss) to Adjusted EBITDA on a consolidated basis for the three months ended March 31, 2023 and 2022 is as follows: THREE MONTHS ENDED MARCH 31, 2023 2022 Net Income (Loss) $ 65,535 $ 41,707 Add/(Deduct): Interest expense, net 137,169 114,442 Provision (benefit) for income taxes 16,758 10,080 Depreciation and amortization 182,094 183,615 Acquisition and Integration Costs 1,595 15,661 Restructuring and other transformation 36,913 — (Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate) (13,061) (705) Other expense (income), net, excluding our share of losses (gains) from our unconsolidated joint ventures 17,491 53,515 Stock-based compensation expense 12,509 11,341 Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures 3,805 1,338 Adjusted EBITDA $ 460,808 $ 430,994 Information as to our revenues by product and service lines by segment for the three months ended March 31, 2023 and 2022 is as follows: THREE MONTHS ENDED MARCH 31, 2023 2022 Global RIM Business Records Management (1) $ 867,988 $ 802,553 Data Management (1) 129,594 133,656 Information Destruction (1)(2) 128,944 112,682 Data Center (1) — — Global Data Center Business Records Management (1) $ — $ — Data Management (1) — — Information Destruction (1) — — Data Center (1) 112,305 96,987 Corporate and Other Records Management (1) $ 34,348 $ 31,898 Data Management (1) — — Information Destruction (1)(3) 41,170 70,270 Data Center (1) — — Total Consolidated Records Management (1) $ 902,336 $ 834,451 Data Management (1) 129,594 133,656 Information Destruction (1)(2)(3) 170,114 182,952 Data Center (1) 112,305 96,987 (1) Each of these offerings has a component of revenue that is storage rental related and a component that is service revenue, except for information destruction, which does not have a storage rental component. (2) Includes secure shredding services. (3) Includes product revenue from ITRenew. |
Related Parties
Related Parties | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Parties | RELATED PARTIES In October 2020, in connection with the formation of the Frankfurt JV, we entered into agreements whereby we earn various fees, including (i) special project revenue and (ii) property management and construction and development fees for services we are providing to the Frankfurt JV (the "Frankfurt JV Agreements"). In March 2019, in connection with the formation of the MakeSpace JV (as defined in Note 5 to Notes to Consolidated Financial Statements included in our Annual Report), we entered into a storage and service agreement with the MakeSpace JV to provide certain storage and related services to the MakeSpace JV (the "MakeSpace Agreement"). In February 2022, in connection with the formation of the Clutter JV, we terminated the MakeSpace Agreement and entered into a storage and service agreement with the Clutter JV to provide certain storage and related services to the Clutter JV (the "Clutter Agreement"). Revenue recognized in the accompanying Condensed Consolidated Statements of Operations under these agreements for the three months ended March 31, 2023 and 2022 is as follows (approximately): THREE MONTHS ENDED MARCH 31, 2023 2022 Frankfurt JV Agreements (1) $ 900 $ 7,100 MakeSpace Agreement and Clutter Agreement (2) 6,000 7,000 (1) Revenue associated with the Frankfurt JV Agreements is presented as a component of our Global Data Center Business segment. (2) Revenue associated with the MakeSpace Agreement and Clutter Agreement is presented as a component of our Global RIM Business segment. |
Restructuring And Other Transfo
Restructuring And Other Transformation | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring And Other Transformation | RESTRUCTURING AND OTHER TRANSFORMATION PROJECT MATTERHORN In September 2022, we announced Project Matterhorn, a global program designed to accelerate the growth of our business. Project Matterhorn investments will focus on transforming our operating model to a global operating model. Project Matterhorn will focus on the formation of a solution-based sales approach that is designed to allow us to optimize our shared services and best practices to better serve our customers' needs. We will be investing to accelerate growth and to capture a greater share of the large, global addressable markets in which we operate. We expect to incur approximately $150,000 in costs annually related to Project Matterhorn from 2023 through 2025. Costs are comprised of (1) restructuring costs, which include (i) site consolidation and other related exit costs, (ii) employee severance costs and (iii) certain professional fees associated with these activities, and (2) other transformation costs, which include professional fees such as project management costs and costs for third party consultants who are assisting in the enablement of our growth initiatives. Total costs related to Project Matterhorn during the three months ended March 31, 2023 were approximately $36,913 and are included in Restructuring and other transformation in our Condensed Consolidated Statement of Operations. There were no Restructuring and other transformation costs related to Project Matterhorn for the three months ended March 31, 2022. Restructuring and other transformation related to Project Matterhorn included in the accompanying Condensed Consolidated Statement of Operations for the three months ended March 31, 2023, and from the inception of Project Matterhorn through March 31, 2023, is as follows: THREE MONTHS ENDED MARCH 31, 2023 FROM INCEPTION OF PROJECT MATTERHORN THROUGH MARCH 31, 2023 Restructuring $ 11,957 $ 25,249 Other transformation 24,956 53,597 Restructuring and other transformation $ 36,913 $ 78,846 Restructuring costs for Project Matterhorn, included as a component of Restructuring and other transformation in the accompanying Condensed Consolidated Statement of Operations, by segment for the three months ended March 31, 2023, and from the inception of Project Matterhorn through March 31, 2023, is as follows: THREE MONTHS ENDED MARCH 31, 2023 FROM INCEPTION OF PROJECT MATTERHORN THROUGH MARCH 31, 2023 Global RIM Business $ 9,525 $ 22,608 Global Data Center Business 78 78 Corporate and Other 2,354 2,563 Total restructuring costs $ 11,957 $ 25,249 Other transformation costs for Project Matterhorn, included as a component of Restructuring and other transformation in the accompanying Condensed Consolidated Statement of Operations, by segment for the three months ended March 31, 2023, and from the inception of Project Matterhorn through March 31, 2023, is as follows: THREE MONTHS ENDED MARCH 31, 2023 FROM INCEPTION OF PROJECT MATTERHORN THROUGH MARCH 31, 2023 Global RIM Business $ 3,485 $ 7,386 Global Data Center Business 870 928 Corporate and Other 20,601 45,283 Total other transformation costs $ 24,956 $ 53,597 Accrued restructuring costs and accrued other transformation costs included in the accompanying Condensed Consolidated Balance Sheet as of March 31, 2023 were approximately $4,600 and $12,000, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | CASH AND CASH EQUIVALENTSCash and cash equivalents include cash on hand and cash invested in highly liquid short-term securities, which have remaining maturities at the date of purchase of less than 90 days. Cash and cash equivalents are carried at cost, which approximates fair value. |
Accounts Receivable | ACCOUNTS RECEIVABLE We maintain an allowance for doubtful accounts and a credit memo reserve for estimated losses resulting from the potential inability of our customers to make required payments and potential disputes regarding billing and service issues. |
Leases | LEASES We lease facilities for certain warehouses, data centers and office space. We also have land leases, including those on which certain facilities are located. |
Revenues | REVENUESThe costs associated with the initial movement of customer records into physical storage and certain commissions are considered costs to obtain or fulfill customer contracts (collectively, "Contract Fulfillment Costs").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 Accounting Standards Codification ("ASC") No. 842 ("ASC 842"), Leases, |
Income Taxes | INCOME TAXESWe provide for income taxes during interim periods based on our estimate of the effective tax rate for the year. |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS In December 2021, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") No. 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ("ASU 2021-08"). ASU 2021-08 requires that an entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers, and for the related revenue contracts in accordance with ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as if it had originated the contracts. We adopted ASU 2021-08 on January 1, 2023 on a prospective basis, and there was no material impact on our condensed consolidated financial statements. |
Commitments and Contingencies | We are involved in litigation from time to time in the ordinary course of business, including litigation arising from damage to customer assets in our facilities caused by fires and other natural disasters. While the outcome of litigation is inherently uncertain, we do not believe any current litigation will have a material adverse effect on our consolidated financial condition, results of operations or cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Allowance for Credit Loss | The rollforward of the allowance for doubtful accounts and credit memo reserves for the three months ended March 31, 2023 is as follows: Balance as of December 31, 2022 $ 54,143 Credit memos charged to revenue 23,392 Allowance for bad debts charged to expense 10,242 Deductions and other (1) (26,738) Balance as of March 31, 2023 $ 61,039 (1) Primarily consists of the issuance of credit memos, the write-off of accounts receivable and the impact associated with currency translation adjustments. |
Schedule of Operating and Financing Lease Right-of-Use Assets and Lease Liabilities | Operating and financing lease right-of-use assets and lease liabilities as of March 31, 2023 and December 31, 2022 are as follows: DESCRIPTION MARCH 31, 2023 DECEMBER 31, 2022 Assets: Operating lease right-of-use assets $ 2,666,951 $ 2,583,704 Financing lease right-of-use assets, net of accumulated depreciation (1) 250,216 251,690 Liabilities: Current Operating lease liabilities $ 293,795 $ 288,738 Financing lease liabilities (1) 47,516 43,857 Long-term Operating lease liabilities $ 2,513,817 $ 2,429,167 Financing lease liabilities (1) 294,517 289,048 (1) Financing lease right-of-use assets, current financing lease liabilities and long-term financing lease liabilities are included within Property, Plant and Equipment, Net, Current portion of long-term debt and Long-term Debt, net of current portion, respectively, within our Condensed Consolidated Balance Sheets. |
Schedule of Lease Costs and Other Information | The components of the lease expense for the three months ended March 31, 2023 and 2022 are as follows: THREE MONTHS ENDED MARCH 31, DESCRIPTION 2023 2022 Operating lease cost (1) $ 155,873 $ 143,530 Financing lease cost: Depreciation of financing lease right-of-use assets $ 10,008 $ 11,454 Interest expense for financing lease liabilities 4,341 4,678 (1) Operating lease cost, the majority of which is included in Cost of sales, includes variable lease costs of $31,580 and $30,508 for the three months ended March 31, 2023 and 2022, respectively. THREE MONTHS ENDED MARCH 31, CASH PAID FOR AMOUNTS INCLUDED IN MEASUREMENT OF LEASE LIABILITIES: 2023 2022 Operating cash flows used in operating leases $ 108,723 $ 101,605 Operating cash flows used in financing leases (interest) 4,341 4,678 Financing cash flows used in financing leases 11,714 10,362 NON-CASH ITEMS: Operating lease modifications and reassessments $ 18,163 $ 23,767 New operating leases (including acquisitions and sale-leaseback transactions) 113,853 125,902 |
Schedule of Changes in the Carrying Value of Goodwill Attributable to Each Reportable Operating Segment | The changes in the carrying value of goodwill attributable to each reportable segment for the three months ended March 31, 2023 are as follows: GLOBAL RIM BUSINESS GLOBAL DATA CENTER BUSINESS CORPORATE AND OTHER TOTAL CONSOLIDATED Goodwill balance, net of accumulated amortization as of December 31, 2022 $ 3,852,946 $ 418,502 $ 611,286 $ 4,882,734 Fair value and other adjustments 71 — 2,333 2,404 Currency effects 9,239 2,064 320 11,623 Goodwill balance, net of accumulated amortization as of March 31, 2023 $ 3,862,256 $ 420,566 $ 613,939 $ 4,896,761 Accumulated goodwill impairment balance as of March 31, 2023 $ 132,409 $ — $ 26,011 $ 158,420 |
Schedule of Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis | The assets and liabilities carried at fair value measured on a recurring basis as of March 31, 2023 and December 31, 2022 are as follows: FAIR VALUE MEASUREMENTS AT MARCH 31, 2023 USING DESCRIPTION TOTAL CARRYING QUOTED PRICES IN SIGNIFICANT OTHER SIGNIFICANT Money Market Funds $ 9,786 $ — $ 9,786 $ — Time Deposits 1,721 — 1,721 — Trading Securities 9,380 9,347 33 — Derivative Assets 42,105 — 42,105 — Derivative Liabilities 3,443 — 3,443 — Deferred Purchase Obligations (1) 197,222 — — 197,222 FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2022 USING DESCRIPTION TOTAL CARRYING QUOTED PRICES IN SIGNIFICANT OTHER SIGNIFICANT Money Market Funds $ 11,311 $ — $ 11,311 $ — Time Deposits 1,102 — 1,102 — Trading Securities 9,462 9,426 36 — Derivative Assets 51,396 — 51,396 — Derivative Liabilities 489 — 489 — Deferred Purchase Obligations (1) 193,033 — — 193,033 (1) Primarily relates to the fair value of the Deferred Purchase Obligation (as defined in Note 3 to Notes to Consolidated Financial Statements included in our Annual Report) associated with the ITRenew Transaction (as defined below in Note 3), which was determined utilizing a Monte-Carlo model and takes into account our forecasted projections as it relates to the underlying performance of the business. The Monte-Carlo simulation model incorporates assumptions as to expected gross profits over the applicable achievement period, including adjustments for the volatility of timing and amount of the associated revenue and costs, as well as discount rates that account for the risk of the underlying arrangement and overall market risks. Any material change to these assumptions may result in a significantly higher or lower fair value of the Deferred Purchase Obligation. The change in value of the Deferred Purchase Obligation during the three months ended March 31, 2023 was driven by the accretion of the obligation to present value. |
Schedule of Changes in Accumulated Other Comprehensive Items, Net | The changes in Accumulated other comprehensive items, net for the three months ended March 31, 2023 and 2022 are as follows: THREE MONTHS ENDED MARCH 31, 2023 THREE MONTHS ENDED MARCH 31, 2022 FOREIGN CHANGE IN FAIR VALUE OF TOTAL FOREIGN CHANGE IN FAIR VALUE OF TOTAL Beginning of Period $ (454,509) $ 12,506 $ (442,003) $ (341,024) $ 2,677 $ (338,347) Other comprehensive income (loss): Foreign currency translation and other adjustments 39,677 — 39,677 27,223 — 27,223 Change in fair value of derivative instruments — (3,442) (3,442) — 16,766 16,766 Total other comprehensive income (loss) 39,677 (3,442) 36,235 27,223 16,766 43,989 End of Period $ (414,832) $ 9,064 $ (405,768) $ (313,801) $ 19,443 $ (294,358) |
Schedule of Cost and Accumulated Amortization Associated with Contract Fulfillment Costs | Contract Fulfillment Costs as of March 31, 2023 and December 31, 2022 are as follows: MARCH 31, 2023 DECEMBER 31, 2022 GROSS ACCUMULATED NET GROSS ACCUMULATED NET Intake Costs asset $ 71,426 $ (45,700) $ 25,726 $ 68,345 $ (42,132) $ 26,213 Commissions asset 142,763 (63,244) 79,519 133,145 (58,949) 74,196 |
Schedule of Deferred Revenue Liabilities | Deferred revenue liabilities are reflected in our Condensed Consolidated Balance Sheets as follows: DESCRIPTION LOCATION IN BALANCE SHEET MARCH 31, 2023 DECEMBER 31, 2022 Deferred revenue - Current Deferred revenue $ 335,393 $ 328,910 Deferred revenue - Long-term Other Long-term Liabilities 29,482 32,960 |
Schedule of Revenue | Storage rental revenue, including revenue associated with power and connectivity, associated with our Global Data Center Business for the three months ended March 31, 2023 and 2022 is as follows: THREE MONTHS ENDED MARCH 31, 2023 2022 Storage rental revenue (1) $ 107,435 $ 87,451 (1) Revenue associated with power and connectivity included within storage rental revenue was $40,672 and $28,318 for the three months ended March 31, 2023 and 2022, respectively. |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense for the Employee Stock-Based Awards for the three months ended March 31, 2023 and 2022 is as follows: THREE MONTHS ENDED MARCH 31, 2023 2022 Stock-based compensation expense $ 12,509 $ 11,341 |
Schedule of Components of Gain/Loss on Sale/Disposal of Property, Plant and Equipment | (Gain) loss on disposal/write-down of property, plant and equipment, net for the three months ended March 31, 2023 and 2022 is as follows: THREE MONTHS ENDED MARCH 31, 2023 (1) 2022 (Gain) Loss on disposal/write-down of property, plant and equipment, net $ (13,061) $ (705) (1) The gains for the three months ended March 31, 2023 primarily consist of a gain of approximately $18,500 associated with a sale-leaseback transaction of a facility in Singapore, as part of our program to monetize a small portion of our industrial assets through sale and sale-leaseback transactions. The terms for this lease are consistent with the terms of our lease portfolio, which are disclosed in detail in Note 2.j. to Notes to Consolidated Financial Statements included in our Annual Report. |
Schedule of Other Expense (Income), Net | Other expense (income), net for the three months ended March 31, 2023 and 2022 consists of the following: THREE MONTHS ENDED MARCH 31, DESCRIPTION 2023 2022 Foreign currency transaction losses (gains), net $ 14,424 $ (13,201) Debt extinguishment expense — 671 Other, net (1) 6,776 68,431 Other Expense (Income), Net $ 21,200 $ 55,901 (1) Other, net for the three months ended March 31, 2022 consists primarily of (i) a loss of approximately $105,800 associated with the OSG Deconsolidation (as defined in Note 4 to Notes to Consolidated Financial Statements included in our Annual Report), partially offset by (ii) a gain of approximately $35,800 associated with the Clutter Transaction (as defined in Note 5 to Notes to Consolidated Financial Statements included in our Annual Report). |
Schedule of Income Taxes | Our effective tax rates for the three months ended March 31, 2023 and 2022 are as follows: THREE MONTHS ENDED MARCH 31, 2023 (1) 2022 (2) Effective Tax Rate 20.4 % 19.5 % (1) The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three months ended March 31, 2023 were the benefits derived from the dividends paid deduction and the differences in the tax rates to which our foreign earnings are subject. (2) The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three months ended March 31, 2022 were the benefits derived from the dividends paid deduction, the differences in the tax rates to which our foreign earnings are subject, and a release of valuation allowances on deferred tax assets of our U.S. taxable REIT subsidiaries of approximately $9,900 as a result of our acquisition of Intercept Parent, Inc. ("ITRenew"). |
Schedule of Basic and Diluted Net Income (Loss) Per Share Attributable to the Entity | The calculation of basic and diluted income (loss) per share for the three months ended March 31, 2023 and 2022 are as follows: THREE MONTHS ENDED MARCH 31, 2023 2022 Net Income (Loss) $ 65,535 $ 41,707 Less: Net Income (Loss) Attributable to Noncontrolling Interests 940 (592) Net Income (Loss) Attributable to Iron Mountain Incorporated (utilized in numerator of Earnings Per Share calculation) $ 64,595 $ 42,299 Weighted-average shares—basic 291,442,000 290,328,000 Effect of dilutive potential stock options 1,216,000 995,625 Effect of dilutive potential RSUs and PUs 391,000 521,977 Weighted-average shares—diluted 293,049,000 291,845,602 Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated: Basic $ 0.22 $ 0.15 Diluted $ 0.22 $ 0.14 Antidilutive stock options, RSUs and PUs, excluded from the calculation 145,730 755,580 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisition, Pro Forma Information | These operating expenditures have been reflected within the results of operations in the Pro Forma Financial Information as if they were incurred on January 1, 2021. THREE MONTHS ENDED MARCH 31, 2022 Total Revenues $ 1,266,020 Income from Continuing Operations $ 41,838 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments, All Other Investments [Abstract] | |
Schedule of Equity Method Investments | The carrying values and equity interests in our joint ventures at March 31, 2023 and December 31, 2022 are as follows: MARCH 31, 2023 DECEMBER 31, 2022 CARRYING VALUE EQUITY INTEREST CARRYING VALUE EQUITY INTEREST Web Werks JV $ 98,637 53.58 % $ 98,278 53.58 % Joint venture with AGC Equity Partners (the "Frankfurt JV") 36,579 20.00 % 37,194 20.00 % Joint venture with Clutter, Inc. (the "Clutter JV") 50,712 26.73 % 54,172 26.73 % |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The fair value of derivative instruments recognized in our Condensed Consolidated Balance Sheets at March 31, 2023 and December 31, 2022, by derivative instrument, are as follows: MARCH 31, 2023 DECEMBER 31, 2022 DERIVATIVE INSTRUMENTS (1) Assets Liabilities Assets Liabilities Cash Flow Hedges (2) Interest rate swap agreements $ 10,215 $ 1,151 $ 12,995 $ 489 Net Investment Hedges (3) Cross-currency swap agreements 31,890 2,292 38,401 — (1) Our derivative assets are included as a component of (i) Prepaid expenses and other or (ii) Other within Other assets, net and our derivative liabilities are included as a component of (i) Accrued expenses and other current liabilities or (ii) Other long-term liabilities in our Condensed Consolidated Balance Sheets. As of March 31, 2023, $11,538 is included within Prepaid expenses and other, $30,567 is included within Other assets, $2,292 is included within Accrued expense and other current liabilities and $1,151 is included within Other long-term liabilities. As of December 31, 2022, $2,606 is included within Prepaid expenses and other, $48,790 is included within Other assets, and $489 is included within Other long-term liabilities. (2) As of March 31, 2023, cumulative net gains of $9,064 are recorded within Accumulated other comprehensive items, net associated with these interest rate swap agreements. (3) As of March 31, 2023, cumulative net gains of $29,598 are recorded within Accumulated other comprehensive items, net associated with these cross-currency swap agreements. These cumulative net gains are offset by $14,934 related to the excluded component of our cross-currency swap agreements. |
Schedule of (Losses) Gains for Derivative Instruments | Unrealized (losses) gains recognized in Accumulated other comprehensive income during the three months ended March 31, 2023 and 2022, by derivative instrument, are as follows: THREE MONTHS ENDED MARCH 31, DERIVATIVE INSTRUMENTS 2023 2022 Cash Flow Hedges Interest rate swap agreements $ (3,442) $ 11,470 Net Investment Hedges Cross-currency swap agreements (8,803) 5,296 Cross-currency swap agreements (excluded component) 5,834 — (Losses) gains recognized in Net income during the three months ended March 31, 2023 and 2022, by derivative instrument, are as follows: THREE MONTHS ENDED MARCH 31, DERIVATIVE INSTRUMENTS Location of (loss) gain 2023 2022 Net Investment Hedges Cross-currency swap agreements (excluded component) Interest expense $ (5,834) $ — |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Amount and Fair Value of Long-Term Debt Instruments | Long-term debt is as follows: MARCH 31, 2023 DECEMBER 31, 2022 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) $ 1,439,000 $ (5,687) $ 1,433,313 $ 1,439,000 $ 1,072,200 $ (6,790) $ 1,065,410 $ 1,072,200 Term Loan A (1) 237,500 — 237,500 237,500 240,625 — 240,625 240,625 Term Loan B (1) 664,379 (3,434) 660,945 665,000 666,073 (3,747) 662,326 666,750 Australian Dollar Term Loan 197,929 (585) 197,344 199,746 202,641 (633) 202,008 204,623 UK Bilateral Revolving Credit Facility 173,153 — 173,153 173,153 169,361 — 169,361 169,361 3 7 / 8 % GBP Senior Notes due 2025 (the "GBP Notes") 494,722 (2,413) 492,309 467,572 483,888 (2,589) 481,299 445,206 4 7 / 8 % Senior Notes due 2027 (the "4 7 / 8 % Notes due 2027") (2) 1,000,000 (6,399) 993,601 942,500 1,000,000 (6,754) 993,246 917,500 5 1 / 4 % Senior Notes due 2028 (the "5 1 / 4 % Notes due 2028") (2) 825,000 (5,904) 819,096 781,688 825,000 (6,200) 818,800 754,875 5% Senior Notes due 2028 (the "5% Notes due 2028") (2) 500,000 (3,859) 496,141 461,250 500,000 (4,039) 495,961 450,000 4 7 / 8 % Senior Notes due 2029 (the "4 7 / 8 % Notes due 2029") (2) 1,000,000 (9,403) 990,597 897,500 1,000,000 (9,764) 990,236 865,000 5 1 / 4 % Senior Notes due 2030 (the "5 1 / 4 % Notes due 2030") (2) 1,300,000 (11,031) 1,288,969 1,170,000 1,300,000 (11,407) 1,288,593 1,111,500 4 1 / 2 % Senior Notes due 2031 (the "4 1 / 2 % Notes") (2) 1,100,000 (9,850) 1,090,150 937,750 1,100,000 (10,161) 1,089,839 891,000 5% Senior Notes due 2032 (the "5% Notes due 2032") 750,000 (12,185) 737,815 643,125 750,000 (12,511) 737,489 622,500 5 5 / 8 % Senior Notes due 2032 (the "5 5 / 8 % Notes") (2) 600,000 (5,421) 594,579 538,500 600,000 (5,566) 594,434 520,500 Real Estate Mortgages, Financing Lease Liabilities and Other 434,283 (522) 433,761 434,283 425,777 (578) 425,199 425,777 Accounts Receivable Securitization Program 325,000 (477) 324,523 325,000 314,700 (531) 314,169 314,700 Total Long-term Debt 11,040,966 (77,170) 10,963,796 10,650,265 (81,270) 10,568,995 Less Current Portion (101,608) — (101,608) (87,546) — (87,546) Long-term Debt, Net of Current Portion $ 10,939,358 $ (77,170) $ 10,862,188 $ 10,562,719 $ (81,270) $ 10,481,449 (1) Collectively, the “Credit Agreement”. The Credit Agreement consists of a revolving credit facility (the “Revolving Credit Facility”), a term loan A (the “Term Loan A”) and a term loan B (the "Term Loan B"). The Revolving Credit Facility and the Term Loan A are scheduled to mature on March 18, 2027. The Term Loan B is scheduled to mature on January 2, 2026. The remaining amount available for borrowing under the Revolving Credit Facility as of March 31, 2023 was $807,146 (which amount represents the maximum availability as of such date). The weighted average interest rate in effect under the Revolving Credit Facility was 6.6% and 6.2% as of March 31, 2023 and December 31, 2022, respectively. (2) Collectively, the "Parent Notes". |
Stockholders' Equity Matters (T
Stockholders' Equity Matters (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Dividend Declared and Payments | In fiscal year 2022 and the three months ended March 31, 2023, our board of directors declared the following dividends: DECLARATION DATE DIVIDEND RECORD DATE TOTAL PAYMENT DATE February 24, 2022 $ 0.6185 March 15, 2022 $ 179,661 April 6, 2022 April 28, 2022 0.6185 June 15, 2022 179,781 July 6, 2022 August 4, 2022 0.6185 September 15, 2022 179,790 October 4, 2022 November 3, 2022 0.6185 December 15, 2022 179,866 January 5, 2023 February 23, 2023 0.6185 March 15, 2023 180,339 April 5, 2023 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Analysis of Business Segment Information | An analysis of our business segment information and reconciliation to the accompanying Condensed Consolidated Financial Statements for the three months ended March 31, 2023 and 2022 is as follows: THREE MONTHS ENDED MARCH 31, 2023 2022 Global RIM Business Total Revenues $ 1,126,526 $ 1,048,891 Adjusted EBITDA 477,784 448,795 Global Data Center Business Total Revenues $ 112,305 $ 96,987 Adjusted EBITDA 50,635 41,977 Corporate and Other Total Revenues $ 75,518 $ 102,168 Adjusted EBITDA (67,611) (59,778) Total Consolidated Total Revenues $ 1,314,349 $ 1,248,046 Adjusted EBITDA 460,808 430,994 |
Schedule of Reconciliation of Net Income (Loss) to Adjusted EBITDA | A reconciliation of Net Income (Loss) to Adjusted EBITDA on a consolidated basis for the three months ended March 31, 2023 and 2022 is as follows: THREE MONTHS ENDED MARCH 31, 2023 2022 Net Income (Loss) $ 65,535 $ 41,707 Add/(Deduct): Interest expense, net 137,169 114,442 Provision (benefit) for income taxes 16,758 10,080 Depreciation and amortization 182,094 183,615 Acquisition and Integration Costs 1,595 15,661 Restructuring and other transformation 36,913 — (Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate) (13,061) (705) Other expense (income), net, excluding our share of losses (gains) from our unconsolidated joint ventures 17,491 53,515 Stock-based compensation expense 12,509 11,341 Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures 3,805 1,338 Adjusted EBITDA $ 460,808 $ 430,994 |
Schedule of Revenues by Product and Service Lines by Segment | Information as to our revenues by product and service lines by segment for the three months ended March 31, 2023 and 2022 is as follows: THREE MONTHS ENDED MARCH 31, 2023 2022 Global RIM Business Records Management (1) $ 867,988 $ 802,553 Data Management (1) 129,594 133,656 Information Destruction (1)(2) 128,944 112,682 Data Center (1) — — Global Data Center Business Records Management (1) $ — $ — Data Management (1) — — Information Destruction (1) — — Data Center (1) 112,305 96,987 Corporate and Other Records Management (1) $ 34,348 $ 31,898 Data Management (1) — — Information Destruction (1)(3) 41,170 70,270 Data Center (1) — — Total Consolidated Records Management (1) $ 902,336 $ 834,451 Data Management (1) 129,594 133,656 Information Destruction (1)(2)(3) 170,114 182,952 Data Center (1) 112,305 96,987 (1) Each of these offerings has a component of revenue that is storage rental related and a component that is service revenue, except for information destruction, which does not have a storage rental component. (2) Includes secure shredding services. (3) Includes product revenue from ITRenew. |
Related Parties (Tables)
Related Parties (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Revenue Recognized | Revenue recognized in the accompanying Condensed Consolidated Statements of Operations under these agreements for the three months ended March 31, 2023 and 2022 is as follows (approximately): THREE MONTHS ENDED MARCH 31, 2023 2022 Frankfurt JV Agreements (1) $ 900 $ 7,100 MakeSpace Agreement and Clutter Agreement (2) 6,000 7,000 (1) Revenue associated with the Frankfurt JV Agreements is presented as a component of our Global Data Center Business segment. (2) Revenue associated with the MakeSpace Agreement and Clutter Agreement is presented as a component of our Global RIM Business segment. |
Restructuring And Other Trans_2
Restructuring And Other Transformation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring And Other Transformation | Restructuring and other transformation related to Project Matterhorn included in the accompanying Condensed Consolidated Statement of Operations for the three months ended March 31, 2023, and from the inception of Project Matterhorn through March 31, 2023, is as follows: THREE MONTHS ENDED MARCH 31, 2023 FROM INCEPTION OF PROJECT MATTERHORN THROUGH MARCH 31, 2023 Restructuring $ 11,957 $ 25,249 Other transformation 24,956 53,597 Restructuring and other transformation $ 36,913 $ 78,846 Restructuring costs for Project Matterhorn, included as a component of Restructuring and other transformation in the accompanying Condensed Consolidated Statement of Operations, by segment for the three months ended March 31, 2023, and from the inception of Project Matterhorn through March 31, 2023, is as follows: THREE MONTHS ENDED MARCH 31, 2023 FROM INCEPTION OF PROJECT MATTERHORN THROUGH MARCH 31, 2023 Global RIM Business $ 9,525 $ 22,608 Global Data Center Business 78 78 Corporate and Other 2,354 2,563 Total restructuring costs $ 11,957 $ 25,249 Other transformation costs for Project Matterhorn, included as a component of Restructuring and other transformation in the accompanying Condensed Consolidated Statement of Operations, by segment for the three months ended March 31, 2023, and from the inception of Project Matterhorn through March 31, 2023, is as follows: THREE MONTHS ENDED MARCH 31, 2023 FROM INCEPTION OF PROJECT MATTERHORN THROUGH MARCH 31, 2023 Global RIM Business $ 3,485 $ 7,386 Global Data Center Business 870 928 Corporate and Other 20,601 45,283 Total other transformation costs $ 24,956 $ 53,597 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts and Credit Memo Reserves (Details) - Allowance for doubtful accounts $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |
Beginning balance | $ 54,143 |
Credit memos charged to revenue | 23,392 |
Allowance for bad debts charged to expense | 10,242 |
Deductions and other | (26,738) |
Ending balance | $ 61,039 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Supplemental Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Operating lease right-of-use assets | $ 2,666,951 | $ 2,583,704 |
Financing lease right-of-use assets, net of accumulated depreciation | 250,216 | 251,690 |
Current | ||
Operating lease liabilities | 293,795 | 288,738 |
Finance lease liabilities | 47,516 | 43,857 |
Long-term | ||
Operating lease liabilities | 2,513,817 | 2,429,167 |
Finance lease liabilities | $ 294,517 | $ 289,048 |
Finance lease, right-of-use asset, statement of financial position [Extensible List] | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization |
Operating lease, liability, current, statement of financial position [Extensible List] | Accrued expenses and other current liabilities (includes current portion of operating lease liabilities) | Accrued expenses and other current liabilities (includes current portion of operating lease liabilities) |
Finance lease, liability, current, statement of financial position [Extensible List] | Current portion of long-term debt | Current portion of long-term debt |
Finance lease, liability, noncurrent, statement of financial position [Extensible List] | Long-term Debt, net of current portion | Long-term Debt, net of current portion |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Leases Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accounting Policies [Abstract] | ||
Operating lease cost | $ 155,873 | $ 143,530 |
Depreciation of financing lease right-of-use assets | 10,008 | 11,454 |
Interest expense for financing lease liabilities | 4,341 | 4,678 |
Variable lease costs | $ 31,580 | $ 30,508 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Leases Narrative (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Accounting Policies [Abstract] | |
Operating leases not yet commenced, term | 25 years |
Operating leases not yet commenced | $ 170,100 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Supplemental Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accounting Policies [Abstract] | ||
Operating cash flows used in operating leases | $ 108,723 | $ 101,605 |
Operating cash flows used in financing leases (interest) | 4,341 | 4,678 |
Financing cash flows used in financing leases | 11,714 | 10,362 |
Operating lease modifications and reassessments | 18,163 | 23,767 |
New operating leases (including acquisitions and sale-leaseback transactions) | $ 113,853 | $ 125,902 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Schedule of Changes in Carrying Value of Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Gross amount of goodwill [Roll Forward] | |
Goodwill beginning balance | $ 4,882,734 |
Fair value and other adjustments | 2,404 |
Currency effects | 11,623 |
Goodwill ending balance | 4,896,761 |
Accumulated goodwill impairment | 158,420 |
GLOBAL RIM BUSINESS | |
Gross amount of goodwill [Roll Forward] | |
Goodwill beginning balance | 3,852,946 |
Fair value and other adjustments | 71 |
Currency effects | 9,239 |
Goodwill ending balance | 3,862,256 |
Accumulated goodwill impairment | 132,409 |
GLOBAL DATA CENTER BUSINESS | |
Gross amount of goodwill [Roll Forward] | |
Goodwill beginning balance | 418,502 |
Fair value and other adjustments | 0 |
Currency effects | 2,064 |
Goodwill ending balance | 420,566 |
Accumulated goodwill impairment | 0 |
CORPORATE AND OTHER | |
Gross amount of goodwill [Roll Forward] | |
Goodwill beginning balance | 611,286 |
Fair value and other adjustments | 2,333 |
Currency effects | 320 |
Goodwill ending balance | 613,939 |
Accumulated goodwill impairment | $ 26,011 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1) | ||
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items] | ||
Trading Securities | $ 9,347 | $ 9,426 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Deferred Purchase Obligations | 0 | 0 |
QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1) | Money Market Funds | ||
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1) | Time Deposits | ||
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | ||
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items] | ||
Trading Securities | 33 | 36 |
Derivative Assets | 42,105 | 51,396 |
Derivative Liabilities | 3,443 | 489 |
Deferred Purchase Obligations | 0 | 0 |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | Money Market Funds | ||
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items] | ||
Cash and cash equivalents | 9,786 | 11,311 |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | Time Deposits | ||
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items] | ||
Cash and cash equivalents | 1,721 | 1,102 |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items] | ||
Trading Securities | 0 | 0 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Deferred Purchase Obligations | 197,222 | 193,033 |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | Money Market Funds | ||
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | Time Deposits | ||
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Estimate of Fair Value | ||
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items] | ||
Trading Securities | 9,380 | 9,462 |
Derivative Assets | 42,105 | 51,396 |
Derivative Liabilities | 3,443 | 489 |
Deferred Purchase Obligations | 197,222 | 193,033 |
Estimate of Fair Value | Money Market Funds | ||
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items] | ||
Cash and cash equivalents | 9,786 | 11,311 |
Estimate of Fair Value | Time Deposits | ||
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items] | ||
Cash and cash equivalents | $ 1,721 | $ 1,102 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Accumulated Other Comprehensive Income and Other Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
AOCI Rollforward | ||
Beginning of Period | $ 636,793 | $ 857,068 |
Other comprehensive income (loss): | ||
Foreign currency translation and other adjustments | 39,677 | 27,223 |
Change in fair value of derivative instruments | (3,442) | 16,766 |
Total other comprehensive income (loss) | 36,235 | 43,989 |
End of period | 545,589 | 758,771 |
FOREIGN CURRENCY TRANSLATION AND OTHER ADJUSTMENTS | ||
AOCI Rollforward | ||
Beginning of Period | (454,509) | (341,024) |
Other comprehensive income (loss): | ||
Foreign currency translation and other adjustments | 39,677 | 27,223 |
Change in fair value of derivative instruments | 0 | 0 |
Total other comprehensive income (loss) | 39,677 | 27,223 |
End of period | (414,832) | (313,801) |
CHANGE IN FAIR VALUE OF DERIVATIVE INSTRUMENTS | ||
AOCI Rollforward | ||
Beginning of Period | 12,506 | 2,677 |
Other comprehensive income (loss): | ||
Foreign currency translation and other adjustments | 0 | 0 |
Change in fair value of derivative instruments | (3,442) | 16,766 |
Total other comprehensive income (loss) | (3,442) | 16,766 |
End of period | 9,064 | 19,443 |
TOTAL | ||
AOCI Rollforward | ||
Beginning of Period | (442,003) | (338,347) |
Other comprehensive income (loss): | ||
End of period | $ (405,768) | $ (294,358) |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Contract Fulfillment Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Intake Costs asset | ||
Contract With Customer, Asset And Liabilities [Line Items] | ||
GROSS CARRYING AMOUNT | $ 71,426 | $ 68,345 |
ACCUMULATED AMORTIZATION | (45,700) | (42,132) |
NET CARRYING AMOUNT | 25,726 | 26,213 |
Commissions asset | ||
Contract With Customer, Asset And Liabilities [Line Items] | ||
GROSS CARRYING AMOUNT | 142,763 | 133,145 |
ACCUMULATED AMORTIZATION | (63,244) | (58,949) |
NET CARRYING AMOUNT | $ 79,519 | $ 74,196 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Summary of Deferred Revenue Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Deferred revenue - Current | $ 335,393 | $ 328,910 |
Deferred revenue - Long-term | $ 29,482 | $ 32,960 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Storage Rental (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Lessor, Lease, Description [Line Items] | ||
Storage rental | $ 1,314,349 | $ 1,248,046 |
GLOBAL DATA CENTER BUSINESS | ||
Lessor, Lease, Description [Line Items] | ||
Storage rental | 112,305 | 96,987 |
Storage Rental | ||
Lessor, Lease, Description [Line Items] | ||
Storage rental | 810,089 | 751,070 |
Storage Rental | GLOBAL DATA CENTER BUSINESS | ||
Lessor, Lease, Description [Line Items] | ||
Storage rental | 107,435 | 87,451 |
Storage Rental, Power and Connectivity | GLOBAL DATA CENTER BUSINESS | ||
Lessor, Lease, Description [Line Items] | ||
Storage rental | $ 40,672 | $ 28,318 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Stock-Based Compensation | ||
Stock-based compensation expense | $ 12,509 | $ 11,341 |
Unrecognized compensation cost | $ 115,329 |
Summary of Significant Accou_16
Summary of Significant Accounting Policies - Acquisition and Integration costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accounting Policies [Abstract] | ||
Acquisition and Integration Costs | $ 1,595 | $ 15,661 |
Summary of Significant Accou_17
Summary of Significant Accounting Policies - (Gain) Loss on Disposal/Write-Down of Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
(Gain) loss on disposal/write-down of property, plant and equipment, net | $ (13,061) | $ (705) |
Facilities in Singapore | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Sale and sale-leaseback transactions | $ 18,500 |
Summary of Significant Accou_18
Summary of Significant Accounting Policies - Other (Income) Expense, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accounting Policies [Abstract] | ||
Foreign currency transaction losses (gains), net | $ 14,424 | $ (13,201) |
Debt extinguishment expense | 0 | 671 |
Other, net | 6,776 | 68,431 |
Other Expense (Income), Net | 21,200 | 55,901 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
(Loss) gain on disposal | $ 0 | 35,821 |
OSG Records Management (Europe) Limited | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
(Loss) gain on disposal | (105,800) | |
Joint venture with Clutter, Inc. (the "Clutter JV") | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
(Loss) gain on disposal | $ 35,800 |
Summary of Significant Accou_19
Summary of Significant Accounting Policies - Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accounting Policies [Abstract] | ||
Effective Tax Rate | 20.40% | 19.50% |
Federal statutory tax rate | 21% | 21% |
Deferred tax assets | $ 9,900 |
Summary of Significant Accou_20
Summary of Significant Accounting Policies - Income (Loss) Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income (Loss) Per Share-Basic and Diluted | ||
Net Income (Loss) | $ 65,535 | $ 41,707 |
Less: Net Income (Loss) Attributable to Noncontrolling Interests | 940 | (592) |
Net Income (Loss) Attributable to Iron Mountain Incorporated (utilized in numerator of Earnings Per Share calculation) | $ 64,595 | $ 42,299 |
Weighted-average shares—basic (in shares) | 291,442,000 | 290,328,000 |
Effect of dilutive potential stock options (in shares) | 1,216,000 | 995,625 |
Effect of dilutive potential restricted stock, RSUs and PUs (in shares) | 391,000 | 521,977 |
Weighted-average shares—diluted (in shares) | 293,049,000 | 291,845,602 |
Basic (in dollars per share) | $ 0.22 | $ 0.15 |
Diluted (in dollars per share) | $ 0.22 | $ 0.14 |
Antidilutive stock options, RSUs and PUs, excluded from the calculation (in shares) | 145,730 | 755,580 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - ITRenew - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 25, 2022 | Mar. 31, 2023 | |
Business Acquisition [Line Items] | ||
Ownership acquired | 80% | |
Business combination, price of acquisition, expected | $ 725,000 | |
Operating expenditures | $ 59,370 |
Acquisitions - Pro Forma Financ
Acquisitions - Pro Forma Financial Information (Details) - ITRenew $ in Thousands | 3 Months Ended |
Mar. 31, 2022 USD ($) | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |
Total Revenues | $ 1,266,020 |
Income from Continuing Operations | $ 41,838 |
Investments (Details)
Investments (Details) ₨ in Thousands, $ in Thousands | Mar. 31, 2023 INR (₨) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Apr. 30, 2021 INR (₨) | Apr. 30, 2021 USD ($) |
Joint venture with AGC Equity Partners (the "Frankfurt JV") | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Loan receivable | $ 22,800 | ||||
Web Werks JV | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments, fair value disclosure | ₨ 7,500 | $ 96,200 | |||
Additional equity method investments, fair value disclosure | ₨ | ₨ 3,750 | ||||
CARRYING VALUE | $ 98,637 | $ 98,278 | |||
EQUITY INTEREST | 53.58% | 53.58% | 53.58% | ||
Joint venture with AGC Equity Partners (the "Frankfurt JV") | |||||
Schedule of Equity Method Investments [Line Items] | |||||
CARRYING VALUE | $ 36,579 | $ 37,194 | |||
EQUITY INTEREST | 20% | 20% | 20% | ||
Joint venture with Clutter, Inc. (the "Clutter JV") | |||||
Schedule of Equity Method Investments [Line Items] | |||||
CARRYING VALUE | $ 50,712 | $ 54,172 | |||
EQUITY INTEREST | 26.73% | 26.73% | 26.73% |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Interest rate swap agreements | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | $ 4,800 | $ 4,800 |
Interest rate swap agreements 2 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | 350,000 | 350,000 |
Cross-currency Swap Agreements | Net Investment Hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | $ 469,200 | $ 469,200 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Net Assets (Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative asset, current | $ 11,538 | $ 2,606 |
Derivative asset, noncurrent | 30,567 | 48,790 |
Derivative liability, noncurrent | 2,292 | |
Derivative liability, noncurrent | $ 1,151 | 489 |
Derivative liability, statement of financial position [Extensible Enumeration] | Accrued expenses and other current liabilities (includes current portion of operating lease liabilities), Other Long-term Liabilities | |
Derivative asset, current, statement of financial position [Extensible Enumeration] | Prepaid expenses and other | |
Derivative liability, noncurrent, statement of financial position [Extensible Enumeration] | Other Long-term Liabilities | |
Derivative asset, statement of financial position [Extensible Enumeration] | Prepaid expenses and other, Assets, Noncurrent, Excluding Property, Plant and Equipment, Net | |
Derivative asset, noncurrent, statement of financial position [Extensible Enumeration] | Assets, Noncurrent, Excluding Property, Plant and Equipment, Net | |
Cash Flow Hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Assets | $ 10,215 | 12,995 |
Derivative liabilities | (1,151) | (489) |
Net Investment Hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Assets | 31,890 | 38,401 |
Derivative liabilities | (2,292) | $ 0 |
Cumulative net gain in cross-currency swaps | 29,598 | |
Amount recognized in accumulated other comprehensive items for excluded component of derivative | 14,934 | |
Interest rate swap agreements | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Cumulative net gain in AOCI | $ 9,064 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - (Losses) Gains (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative [Line Items] | ||
Cash flow hedge, interest rate swap agreements | $ (3,442) | $ 16,766 |
Designated as Hedging Instrument | Interest rate swap agreements | Cash Flow Hedges | ||
Derivative [Line Items] | ||
Cash flow hedge, interest rate swap agreements | (3,442) | 11,470 |
Designated as Hedging Instrument | Cross-currency swap agreements | Net Investment Hedges | ||
Derivative [Line Items] | ||
Cross-currency swap agreements | (8,803) | 5,296 |
Designated as Hedging Instrument | Cross-currency swap agreements (excluded component) | Net Investment Hedges | ||
Derivative [Line Items] | ||
Net investment hedge, currency swap agreements | 5,834 | 0 |
(Losses) gains recognized | $ (5,834) | $ 0 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Debt (inclusive of discount) | $ 11,040,966 | $ 10,650,265 |
Net Deferred Financing Costs | (77,170) | (81,270) |
CARRYING AMOUNT | 10,963,796 | 10,568,995 |
Debt, current portion | (101,608) | (87,546) |
Unamortized debt issuance expense, net of current portion | 0 | 0 |
Carrying amount, current maturities | (101,608) | (87,546) |
Long term debt, gross, net of current portion | 10,939,358 | 10,562,719 |
Unamortized deferred financing costs, noncurrent | (77,170) | (81,270) |
Carrying amount, excluding current maturities | 10,862,188 | 10,481,449 |
Credit Agreement | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding | 39,825 | |
Credit Agreement | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt (inclusive of discount) | 1,439,000 | 1,072,200 |
Net Deferred Financing Costs | (5,687) | (6,790) |
CARRYING AMOUNT | 1,433,313 | 1,065,410 |
FAIR VALUE | 1,439,000 | $ 1,072,200 |
Remaining capacity | $ 807,146 | |
Weighted average interest rate (as a percent) | 6.60% | 6.20% |
Letters of credit outstanding | $ 3,854 | |
Credit Agreement | UK Bilateral Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt (inclusive of discount) | 173,153 | $ 169,361 |
Net Deferred Financing Costs | 0 | 0 |
CARRYING AMOUNT | 173,153 | 169,361 |
FAIR VALUE | 173,153 | 169,361 |
Australian Dollar Term Loan | ||
Debt Instrument [Line Items] | ||
Debt (inclusive of discount) | 197,929 | 202,641 |
Net Deferred Financing Costs | (585) | (633) |
CARRYING AMOUNT | 197,344 | 202,008 |
FAIR VALUE | 199,746 | 204,623 |
Real Estate Mortgages, Financing Lease Liabilities and Other | ||
Debt Instrument [Line Items] | ||
Debt (inclusive of discount) | 434,283 | 425,777 |
Net Deferred Financing Costs | (522) | (578) |
CARRYING AMOUNT | 433,761 | 425,199 |
FAIR VALUE | 434,283 | 425,777 |
Accounts Receivable Securitization Program | ||
Debt Instrument [Line Items] | ||
Debt (inclusive of discount) | 325,000 | 314,700 |
Net Deferred Financing Costs | (477) | (531) |
CARRYING AMOUNT | 324,523 | 314,169 |
FAIR VALUE | 325,000 | 314,700 |
Term Loan A | Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Debt (inclusive of discount) | 237,500 | 240,625 |
Net Deferred Financing Costs | 0 | 0 |
CARRYING AMOUNT | 237,500 | 240,625 |
FAIR VALUE | 237,500 | 240,625 |
Term Loan B | Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Debt (inclusive of discount) | 664,379 | 666,073 |
Net Deferred Financing Costs | (3,434) | (3,747) |
CARRYING AMOUNT | 660,945 | 662,326 |
FAIR VALUE | $ 665,000 | 666,750 |
37/8% GBP Senior Notes due 2025 (the "GBP Notes") | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 3.875% | |
Debt (inclusive of discount) | $ 494,722 | 483,888 |
Net Deferred Financing Costs | (2,413) | (2,589) |
CARRYING AMOUNT | 492,309 | 481,299 |
FAIR VALUE | $ 467,572 | 445,206 |
47/8% Senior Notes due 2027 (the "47/8% Notes due 2027") | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 4.875% | |
Debt (inclusive of discount) | $ 1,000,000 | 1,000,000 |
Net Deferred Financing Costs | (6,399) | (6,754) |
CARRYING AMOUNT | 993,601 | 993,246 |
FAIR VALUE | $ 942,500 | 917,500 |
51/4% Senior Notes due 2028 (the “51/4% Notes due 2028”) | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 5.25% | |
Debt (inclusive of discount) | $ 825,000 | 825,000 |
Net Deferred Financing Costs | (5,904) | (6,200) |
CARRYING AMOUNT | 819,096 | 818,800 |
FAIR VALUE | $ 781,688 | 754,875 |
5% Senior Notes due 2028 (the “5% Notes due 2028”) | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 5% | |
Debt (inclusive of discount) | $ 500,000 | 500,000 |
Net Deferred Financing Costs | (3,859) | (4,039) |
CARRYING AMOUNT | 496,141 | 495,961 |
FAIR VALUE | $ 461,250 | 450,000 |
47/8% Senior Notes due 2029 (the “47/8% Notes due 2029”) | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 4.875% | |
Debt (inclusive of discount) | $ 1,000,000 | 1,000,000 |
Net Deferred Financing Costs | (9,403) | (9,764) |
CARRYING AMOUNT | 990,597 | 990,236 |
FAIR VALUE | $ 897,500 | 865,000 |
51/4% Senior Notes due 2030 (the “51/4 Notes due 2030”) | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 5.25% | |
Debt (inclusive of discount) | $ 1,300,000 | 1,300,000 |
Net Deferred Financing Costs | (11,031) | (11,407) |
CARRYING AMOUNT | 1,288,969 | 1,288,593 |
FAIR VALUE | $ 1,170,000 | 1,111,500 |
41/2% Senior Notes due 2031 (the “41/2% Notes”) | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 4.50% | |
Debt (inclusive of discount) | $ 1,100,000 | 1,100,000 |
Net Deferred Financing Costs | (9,850) | (10,161) |
CARRYING AMOUNT | 1,090,150 | 1,089,839 |
FAIR VALUE | $ 937,750 | 891,000 |
5% Senior Notes due 2032 (the "5% Notes due 2032") | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 5% | |
Debt (inclusive of discount) | $ 750,000 | 750,000 |
Net Deferred Financing Costs | (12,185) | (12,511) |
CARRYING AMOUNT | 737,815 | 737,489 |
FAIR VALUE | $ 643,125 | 622,500 |
55/8% Senior Notes due 2032 (the "55/8% Notes") | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 5.625% | |
Debt (inclusive of discount) | $ 600,000 | 600,000 |
Net Deferred Financing Costs | (5,421) | (5,566) |
CARRYING AMOUNT | 594,579 | 594,434 |
FAIR VALUE | $ 538,500 | $ 520,500 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Insurance settlement | |
Commitments and Contingencies | |
Reasonably possible additional losses | $ 20,500 |
Stockholders' Equity Matters (D
Stockholders' Equity Matters (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||||||||||
May 04, 2023 | Apr. 05, 2023 | Feb. 23, 2023 | Jan. 05, 2023 | Nov. 03, 2022 | Oct. 04, 2022 | Aug. 04, 2022 | Jul. 06, 2022 | Apr. 28, 2022 | Apr. 06, 2022 | Feb. 24, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Debt Instrument [Line Items] | |||||||||||||
Dividend per share (in dollars per share) | $ 0.6185 | $ 0.6185 | $ 0.6185 | $ 0.6185 | $ 0.6185 | ||||||||
TOTAL AMOUNT | $ 179,866 | $ 179,790 | $ 179,781 | $ 179,661 | $ 183,272 | $ 181,023 | |||||||
Subsequent Event | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Dividend per share (in dollars per share) | $ 0.6185 | ||||||||||||
TOTAL AMOUNT | $ 180,339 |
Segment Information - Segment R
Segment Information - Segment Reporting Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Total Revenues | $ 1,314,349 | $ 1,248,046 |
Adjusted EBITDA | 460,808 | 430,994 |
Global RIM Business | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 1,126,526 | 1,048,891 |
Adjusted EBITDA | 477,784 | 448,795 |
Global Data Center Business | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 112,305 | 96,987 |
Adjusted EBITDA | 50,635 | 41,977 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 75,518 | 102,168 |
Adjusted EBITDA | $ (67,611) | $ (59,778) |
Segment Information - Reconcili
Segment Information - Reconciliation to of Net Income to Adjusted EBITDA (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Reconciliation to of Net Income to Adjusted EBITDA | ||
Net Income (Loss) | $ 65,535 | $ 41,707 |
Interest expense, net | 137,169 | 114,442 |
Provision (benefit) for income taxes | 16,758 | 10,080 |
Depreciation and amortization | 182,094 | 183,615 |
Acquisition and Integration Costs | 1,595 | 15,661 |
Restructuring and other transformation | 36,913 | 0 |
(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate) | (13,061) | (705) |
Other expense (income), net, excluding our share of losses (gains) from our unconsolidated joint ventures | 17,491 | 53,515 |
Stock-based compensation expense | 12,509 | 11,341 |
Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures | 3,805 | 1,338 |
Adjusted EBITDA | $ 460,808 | $ 430,994 |
Segment Information - Revenues
Segment Information - Revenues by Product and Service Lines by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Total Revenues | $ 1,314,349 | $ 1,248,046 |
GLOBAL RIM BUSINESS | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 1,126,526 | 1,048,891 |
GLOBAL DATA CENTER BUSINESS | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 112,305 | 96,987 |
CORPORATE AND OTHER | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 75,518 | 102,168 |
Records Management | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 902,336 | 834,451 |
Records Management | GLOBAL RIM BUSINESS | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 867,988 | 802,553 |
Records Management | GLOBAL DATA CENTER BUSINESS | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 0 | 0 |
Records Management | CORPORATE AND OTHER | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 34,348 | 31,898 |
Data Management | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 129,594 | 133,656 |
Data Management | GLOBAL RIM BUSINESS | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 129,594 | 133,656 |
Data Management | GLOBAL DATA CENTER BUSINESS | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 0 | 0 |
Data Management | CORPORATE AND OTHER | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 0 | 0 |
Information Destruction | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 170,114 | 182,952 |
Information Destruction | GLOBAL RIM BUSINESS | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 128,944 | 112,682 |
Information Destruction | GLOBAL DATA CENTER BUSINESS | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 0 | 0 |
Information Destruction | CORPORATE AND OTHER | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 41,170 | 70,270 |
Data Center | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 112,305 | 96,987 |
Data Center | GLOBAL RIM BUSINESS | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 0 | 0 |
Data Center | GLOBAL DATA CENTER BUSINESS | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 112,305 | 96,987 |
Data Center | CORPORATE AND OTHER | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | $ 0 | $ 0 |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Frankfurt JV | ||
Related Party Transaction [Line Items] | ||
Revenue | $ 900 | $ 7,100 |
MakeSpace JV and Clutter JV | ||
Related Party Transaction [Line Items] | ||
Revenue | $ 6 | $ 7,000 |
Restructuring And Other Trans_3
Restructuring And Other Transformation - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Sep. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other transformation | $ 36,913,000 | $ 0 | ||
Accrued restructuring | 4,600,000 | $ 4,600,000 | ||
Other Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Accrued transformation costs | 12,000,000 | 12,000,000 | ||
Project Matterhorn | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected cost | $ 150,000 | |||
Restructuring and other transformation | $ 36,913,000 | $ 0 | $ 78,846,000 |
Restructuring And Other Trans_4
Restructuring And Other Transformation - Restructuring Charges (Details) - Project Matterhorn - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Mar. 31, 2023 | Mar. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | $ 11,957 | $ 25,249 |
Other transformation | 24,956 | 53,597 |
GLOBAL RIM BUSINESS | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | 9,525 | 22,608 |
Other transformation | 3,485 | 7,386 |
GLOBAL DATA CENTER BUSINESS | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | 78 | 78 |
Other transformation | 870 | 928 |
CORPORATE AND OTHER | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | 2,354 | 2,563 |
Other transformation | $ 20,601 | $ 45,283 |