Iron Mountain (IRM) 10-Q 10 May 10 2010 Q1 Quarterly report Financial data

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	12 Months Ended Dec. 31, 2009
Current Assets:
Cash and cash equivalents	$325,422	$446,656
Restricted cash	35,102
Accounts receivable (less allowances of $25,529 and $24,788, respectively)	582,599	585,376
Deferred income taxes	31,248	37,924
Prepaid expenses and other	115,952	141,469
Total Current Assets	1,090,323	1,211,425
Property, Plant and Equipment:
Property, plant and equipment	4,165,217	4,184,631
Less-Accumulated depreciation	(1,657,487)	(1,616,431)
Net Property, Plant and Equipment	2,507,730	2,568,200
Other Assets, net:
Goodwill	2,592,797	2,534,713
Customer relationships and acquisition costs	429,437	438,812
Deferred financing costs	34,013	35,206
Other	84,379	58,478
Total Other Assets, net	3,140,626	3,067,209
Total Assets	6,738,679	6,846,834
Current Liabilities:
Current portion of long-term debt	37,803	40,561
Accounts payable	132,395	175,231
Accrued expenses	339,716	390,860
Deferred revenue	215,995	208,062
Total Current Liabilities	725,909	814,714
Long-term Debt, net of current portion	3,183,349	3,211,223
Other Long-term Liabilities	124,572	105,856
Deferred Rent	89,668	90,503
Deferred Income Taxes	463,241	467,067
Commitments and Contingencies (see Note 8)
Iron Mountain Incorporated Stockholders' 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 203,546,757 shares and 203,431,849 shares, respectively)	2,034	2,035
Additional paid-in capital	1,299,778	1,298,657
Retained earnings	837,860	825,014
Accumulated other comprehensive items, net	8,183	27,661
Total Iron Mountain Incorporated Stockholders' Equity	2,147,855	2,153,367
Noncontrolling Interests	4,085	4,104
Total Equity	2,151,940	2,157,471
Total Liabilities and Equity	$6,738,679	$6,846,834

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
In Thousands, except Share data	Mar. 31, 2010	Dec. 31, 2009
CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowances (in dollars)	$24,788	$25,529
Preferred stock, par value (in dollars per share)	0.01	0.01
Preferred stock, authorized shares	10,000,000	10,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value (in dollars per share)	0.01	0.01
Common stock, authorized shares	400,000,000	400,000,000
Common stock, issued shares	203,431,849	203,546,757
Common stock, outstanding shares	203,431,849	203,546,757

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Thousands, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Revenues:
Storage	$435,248	$409,857
Service	341,258	313,489
Total Revenues	776,506	723,346
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	325,232	316,980
Selling, general and administrative	233,852	210,393
Depreciation and amortization	85,784	76,280
Gain on disposal/writedown of property, plant and equipment, net	(1,053)	(1,504)
Total Operating Expenses	643,815	602,149
Operating Income	132,691	121,197
Interest Expense, Net (includes Interest Income of $789 and $422, respectively)	56,562	55,521
Other Expense, Net	8,819	7,155
Income Before Provision for Income Taxes	67,310	58,521
Provision for Income Taxes	41,471	31,577
Net Income	25,839	26,944
Less: Net (Loss) Income Attributable to Noncontrolling Interests	273	(1,855)
Net Income Attributable to Iron Mountain Incorporated	$25,566	$28,799
Earnings per Share-Basic and Diluted:
Net Income Attributable to Iron Mountain Incorporated per Share-Basic (in dollars per share)	0.13	0.14
Net Income Attributable to Iron Mountain Incorporated per Share-Diluted (in dollars per share)	0.12	0.14
Weighted Average Common Shares Outstanding-Basic (in shares)	203,581	202,066
Weighted Average Common Shares Outstanding-Diluted (in shares)	204,705	203,312

1_CONSOLIDATED STATEMENTS OF OP

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
CONSOLIDATED STATEMENTS OF OPERATIONS
Interest Income	$422	$789

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY (USD $)
In Thousands, except Share data	Comprehensive Income (Loss)	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Items, Net	Noncontrolling Interests	Total
Balance, as adjusted (see Note 2.a.) at Dec. 31, 2008		$2,019	$1,250,064	$604,137	($41,215)	$3,548	$1,818,553
Balance (in shares) at Dec. 31, 2008		201,931,332
Increase (Decrease) in Stockholders' Equity
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation, including tax benefit of $545 and $613 for the period 2009 and 2010, respectively		3	7,531				7,534
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation (in shares)		253,240
Comprehensive Income (Loss):
Currency translation adjustment	(22,761)				(24,517)	1,756	(22,761)
Net income (loss)	26,944			28,799		(1,855)	26,944
Comprehensive Income	4,183						4,183
Noncontrolling interests equity contributions						374	374
Noncontrolling interests dividends						(381)	(381)
Balance at Mar. 31, 2009		2,022	1,257,595	632,936	(65,732)	3,442	1,830,263
Balance (in shares) at Mar. 31, 2009		202,184,572
Balance, as adjusted (see Note 2.a.) at Dec. 31, 2009		2,035	1,298,657	825,014	27,661	4,104	2,157,471
Balance (in shares) at Dec. 31, 2009		203,546,757					203,546,757
Increase (Decrease) in Stockholders' Equity
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation, including tax benefit of $545 and $613 for the period 2009 and 2010, respectively		3	9,191				9,194
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation (in shares)		295,055
Stock options issued in connection with acquisition			2,682				2,682
Stock repurchases		(4)	(10,752)				(10,756)
Stock repurchases (in shares)		(409,963)
Parent cash dividends declared ($0.0625 per share)				(12,720)			(12,720)
Comprehensive Income (Loss):
Currency translation adjustment	(19,558)				(19,478)	(80)	(19,558)
Net income (loss)	25,839			25,566		273	25,839
Comprehensive Income	6,281						6,281
Noncontrolling interests dividends						(212)	(212)
Balance at Mar. 31, 2010		$2,034	$1,299,778	$837,860	$8,183	$4,085	$2,151,940
Balance (in shares) at Mar. 31, 2010		203,431,849					203,431,849

2_CONSOLIDATED STATEMENTS OF EQ

CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) (USD $)
In Thousands, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
CONSOLIDATED STATEMENTS OF EQUITY
Tax benefit on issuance of shares under employee stock purchase plan and option plans and stock-based compensation	$613	$545
Parent cash dividends declared (in dollars per share)	0.0625

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net Income	$25,839	$26,944
Other Comprehensive Income (Loss):
Foreign Currency Translation Adjustments	(19,558)	(22,761)
Total Other Comprehensive Loss	(19,558)	(22,761)
Comprehensive Income	6,281	4,183
Comprehensive (Loss) Income Attributable to Noncontrolling Interests	193	(99)
Comprehensive Income Attributable to Iron Mountain Incorporated	$6,088	$4,282

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Cash Flows from Operating Activities:
Net Income	$25,839	$26,944
Adjustments to reconcile net income to cash flows from operating activities:
Depreciation	76,430	67,552
Amortization (includes deferred financing costs and bond discount of $1,240 and $1,321, respectively)	10,675	9,968
Stock-based compensation expense	4,727	4,259
Provision for deferred income taxes	(7,946)	16,058
Gain on disposal/writedown of property, plant and equipment, net	(1,053)	(1,504)
Foreign currency transactions and other, net	17,467	23,664
Changes in Assets and Liabilities (exclusive of acquisitions):
Accounts receivable	7,976	(27,087)
Prepaid expenses and other current assets	(6,434)	(8,361)
Accounts payable	(15,693)	(12,486)
Accrued expenses, deferred revenue and other current liabilities	9,875	22,922
Other assets and long-term liabilities	9,304	5,563
Cash Flows from Operating Activities	131,167	127,492
Cash Flows from Investing Activities:
Capital expenditures	(81,948)	(71,921)
Cash paid for acquisitions, net of cash acquired	(118,340)	(1,432)
Additions to customer relationship and acquisition costs	(2,429)	(2,347)
Investment in restricted cash	(35,102)
Proceeds from sales of property and equipment and other, net	4,275	1,545
Cash Flows from Investing Activities	(233,544)	(74,155)
Cash Flows from Financing Activities:
Repayment of revolving credit and term loan facilities and other debt	(19,001)	(61,889)
Proceeds from revolving credit and term loan facilities and other debt	7,118	2,209
Debt financing (repayment to) and equity contribution from (distribution to) noncontrolling interests, net	(96)	345
Stock repurchases	(9,636)
Proceeds from exercise of stock options and employee stock purchase plan	3,850	2,680
Excess tax benefits from stock-based compensation	613	545
Payment of debt financing costs	(3)
Cash Flows from Financing Activities	(17,155)	(56,110)
Effect of Exchange Rates on Cash and Cash Equivalents	(1,702)	(3,766)
Decrease in Cash and Cash Equivalents	(121,234)	(6,539)
Cash and Cash Equivalents, Beginning of Period	446,656	278,370
Cash and Cash Equivalents, End of Period	325,422	271,831
Supplemental Information:
Cash Paid for Interest	73,712	51,611
Cash Paid for Income Taxes	9,210	13,595
Non-Cash Investing and Financing Activities:
Capital Leases	13,395	13,665
Accrued Capital Expenditures	29,202	25,600
Dividends Payable	12,720
Unsettled Purchases of Parent Common Stock	$1,120

3_CONSOLIDATED STATEMENTS OF CA

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
CONSOLIDATED STATEMENTS OF CASH FLOWS
Amortization of deferred financing costs and bond discount	$1,321	$1,240

General

General
	3 Months Ended Mar. 31, 2010
General
General	(1) General The interim consolidated financial statements are presented herein without audit 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 unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been omitted pursuant to those rules and regulations, but we believe that the disclosures are adequate to make the information presented not misleading. The consolidated financial statements and notes included herein should be read in conjunction with the annual consolidated financial statements and notes for the year ended December31, 2009 included in our Annual Report on Form10-K filed on February26, 2010. In February 2010, our board of directors approved a share repurchase program authorizing up to $150,000 in repurchases of our common stock. This represented approximately 3% of our outstanding common stock based on the closing price on February19, 2010. All purchases are subject to stock price, market conditions, corporate and legal requirements and other factors. In addition, in February 2010, our board of directors adopted a dividend policy under which we intend to pay quarterly cash dividends on our common stock. The first quarterly dividend of $0.0625 per share was paid on April15, 2010 to shareholders of record on March25, 2010 in the aggregate amount of $12,720. Declaration and payment of future quarterly dividends is at the discretion of our board of directors.

Summary of Significant Accounti

Summary of Significant Accounting Policies
	3 Months Ended Mar. 31, 2010
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	(2) Summary of Significant Accounting Policies a. Principles of Consolidation and Change in Accounting Principle The accompanying financial statements reflect our financial position and results of operations on a consolidated basis. Prior to January1, 2010, the financial position and results of operations of the operating subsidiaries of Iron Mountain Europe (Group) Limited (collectively referred to as "IME"), our European business, were consolidated based on IME's fiscal year ended October31. Effective January1, 2010, we changed the fiscal year-end (and the reporting period for consolidation purposes) of IME to coincide with Iron Mountain Incorporated's ("IMI") fiscal year-end of December31. We believe that the change in accounting principle related to the elimination of the two-month reporting lag for IME is preferable because it will result in more contemporaneous reporting of events and results related to IME. In accordance with applicable accounting literature, a change in subsidiary year-end is treated as a change in accounting principle and requires retrospective application. The cumulative effect of the change was an increase in retained earnings of $12,225 as of January1, 2008. We also recorded a corresponding decrease in other long-term liabilities for the same amount. The impact of the change was not material to the results of operations for the previously reported annual and interim periods after January1, 2008, and, thus, those results have not been revised. There is, however, a charge of $4,082 recorded to other expense, net in the three months ended March31, 2010 to recognize the immaterial differences arising in 2008 and 2009. Had the annual financial statements been revised, operating income and net income attributable to Iron Mountain Incorporated in calendar 2008 would have been decreased by $6,950 and $9,039, respectively, and operating income and net income attributable to Iron Mountain Incorporated in calendar 2009 would have been increased by $3,714 and $4,957 (of which $1,104 and $3,783 would have been recognized in the three months ended March31, 2009), respectively. In addition, revenue, operating income and net income attributable to Iron Mountain Incorporated for the three months ended March31, 2010 would have increased by approximately $5,225, $3,500 and $5,534 had we not eliminated the 2-month reporting lag. There were no significant, infrequent or unusual items in the IME 2-month period ended December31, 2009. All intercompany account balances have been eliminated. b. Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents include cash on hand and cash invested in short-term securities which have remaining maturities at the date of purchase of less than 90days. Cash and cash equivalents are carried at cost, which approximates fair value. We have restricted cash associated with our worker's compensation self-insurance program, which represents a collateral trust agreement with our insurance carrier. The restricted cash subject to this agreement was $35,102 as of March31, 2010 and is included in current assets on our consolidated balance sheets. Restricted cash consists primari

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities
	3 Months Ended Mar. 31, 2010
Derivative Instruments and Hedging Activities
Derivative Instruments and Hedging Activities	(3) Derivative Instruments and Hedging Activities Every derivative instrument is required to be recorded in the balance sheet as either an asset or a liability measured at its fair value. Periodically, we acquire derivative instruments that are intended to hedge either cash flows or values which are subject to foreign exchange or other market price risk, and not for trading purposes. We have formally documented our hedging relationships, including identification of the hedging instruments and the hedged items, as well as our risk management objectives and strategies for undertaking each hedge transaction. Given the recurring nature of our revenues and the long term nature of our asset base, we have the ability and the preference to use long-term, fixed interest rate debt to finance our business, thereby preserving our long term returns on invested capital. We target approximately 75% of our debt portfolio to be fixed with respect to interest rates. Occasionally, we will use interest rate swaps as a tool to maintain our targeted level of fixed rate debt. In addition, we will use borrowings in foreign currencies, either obtained in the U.S. or by our foreign subsidiaries, to naturally hedge foreign currency risk associated with our international investments. Sometimes we enter into currency swaps to temporarily hedge an overseas investment, such as a major acquisition, while we arrange permanent financing or to hedge our exposures due to foreign currency exchange movements related to our intercompany accounts with and between our foreign subsidiaries. As of December31, 2009 and March31, 2010, none of our derivative instruments contained credit-risk related contingent features. We have entered into a number of forward contracts to hedge our exposures in British pounds sterling. As of March31, 2010, we had an outstanding forward contract to purchase 110,164 U.S. dollars and sell 73,600 British pounds sterling to hedge our intercompany exposures with IME. At the maturity of the forward contracts we may enter into new forward contracts to hedge movements in the underlying currencies. At the time of settlement, we either pay or receive the net settlement amount from the forward contract and recognize this amount in other (income) expense, net in the accompanying statement of operations as a realized foreign exchange gain or loss. We have not designated these forward contracts as hedges. During the three months ended March31, 2009 and 2010, there was $15,022 and $10,952 in net cash receipts, respectively, included in cash from operating activities related to settlements associated with these foreign currency forward contracts. The following table provides the fair value of our derivative instruments as of December31, 2009 and March31, 2010 and their gains and losses for the three months ended March31, 2009 and 2010: Asset Derivatives December31, 2009 March31, 2010 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives Not Designated as Hedging Instruments Foreign exchange contracts Current assets $ 4,115 Current assets $

Acquisitions

Acquisitions
	3 Months Ended Mar. 31, 2010
Acquisitions
Acquisitions	(4) Acquisitions We account for acquisitions using the purchase method of accounting, and accordingly, the results of operations for each acquisition have been included in our consolidated results from their respective acquisition dates. Cash consideration for our various acquisitions was primarily provided through borrowings under our credit facilities and cash equivalents on-hand. The unaudited pro forma results of operations for the period ended March31, 2010 are not presented due to the insignificant impact of the 2010 acquisitions on our consolidated results of operations. In February 2010, we acquired 100% of Mimosa Systems,Inc. ("Mimosa"), a leader in enterprise-class digital content archiving solutions, for approximately $112,000 in cash and approximately $2,700 in fair value of options issued. Mimosa, based in Santa Clara, California, provides an on-premises integrated archive for email, SharePoint data and files, and complements IMI's existing enterprise-class, cloud-based digital archive services. NearPoint, Mimosa's enterprise archiving platform, has applications for retention and disposition, eDiscovery, compliance supervision, classification, recovery, and end-user search, enabling customers to reduce risk and lower their eDiscovery and storage costs. Goodwill associated with the Mimosa acquisition was allocated to the Worldwide Digital Business (excluding Stratify) reporting unit. We deposited $11,200 of the cash consideration payable in our acquisition of Mimosa into escrow to secure certain indemnification obligations of the former stockholders of Mimosa (the "Mimosa Stockholders") and to satisfy certain other obligations of the Mimosa Stockholders. On the 15-month anniversary of the closing of the acquisition, or May16, 2011, amounts remaining in the escrow fund will be distributed to the Mimosa Stockholders, minus (i)$750 which shall continue to be held as security for certain types of claims and (ii)any amounts held for unresolved indemnification claims made by us. On the 24-month anniversary of the closing, or February16, 2012, the balance of the escrow fund less any amounts held for unresolved claims will be distributed to the Mimosa Stockholders. The allocation of the purchase price will be finalized upon the final settlement of the purchase price with the Mimosa Stockholders and the subsequent completion of the analyses of the fair value of Mimosa's assets and liabilities and certain tax matters. The analyses include examination of the underlying books and tax records, completion of an appraisal of certain intangible assets and liabilities and a full assessment of legal and tax contingencies. A summary of the consideration paid for acquisitions in 2010 and the allocation of the purchase price of the acquisitions is as follows: Cash Paid (gross of cash acquired)(1) $ 112,037 Fair Value of Options Issued 2,682 Total Consideration 114,719 Fair Value of Identifiable Assets Acquired: Cash, Accounts Receivable, Prepaid Expenses and Other 6,569 Property, Plant and Equipment(2) 874 Customer Relationship Assets(3) 7,100 Core Technology (inc

Long-term Debt

Long-term Debt
	3 Months Ended Mar. 31, 2010
Long-term Debt
Long-term Debt	(5) Long-term Debt Long-term debt consists of the following: December31, 2009 March31, 2010 Carrying Amount Fair Value Carrying Amount Fair Value Revolving Credit Facility(1) $ 21,799 $ 21,799 $ 19,304 $ 19,304 Term Loan Facility(1) 400,300 400,300 399,275 399,275 71/4% GBP Senior Subordinated Notes due 2014 (the "71/4%notes")(2)(3) 238,920 236,531 227,235 227,235 73/4% Senior Subordinated Notes due 2015 (the "73/4%notes")(2)(3) 435,856 433,411 435,628 435,287 65/8% Senior Subordinated Notes due 2016 (the "65/8%notes")(2)(3) 317,035 313,200 317,159 318,592 71/2% CAD Senior Subordinated Notes due 2017 (the "Subsidiary Notes")(2)(4) 166,810 165,142 172,235 173,527 83/4% Senior Subordinated Notes due 2018 (the "83/4%notes")(2)(3) 200,000 207,750 200,000 209,500 8% Senior Subordinated Notes due 2018 (the "8%notes")(2)(3) 49,749 48,464 49,756 48,686 63/4% Euro Senior Subordinated Notes due 2018 (the "63/4% notes")(2)(3) 363,166 343,562 341,635 343,893 8% Senior Subordinated Notes due 2020 (the "8%notesdue 2020")(2)(3) 300,000 305,250 300,000 305,250 83/8% Senior Subordinated Notes due 2021 (the "83/8%notes")(2)(3) 548,002 567,188 548,045 569,250 Real Estate Mortgages, Capital Leases and Other(5) 210,147 210,147 210,880 210,880 Total Long-term Debt 3,251,784 3,221,152 Less Current Portion (40,561 ) (37,803 ) Long-term Debt, Net of Current Portion $ 3,211,223 $ 3,183,349 (1) The capital stock or other equity interests of most of our U.S. subsidiaries, and up to 66% of the capital stock or other equity interests of our first tier foreign subsidiaries, are pledged to secure these debt instruments, together with all intercompany obligations of foreign subsidiaries owed to us or to one of our U.S. subsidiary guarantors. The fair value of this long-term debt approximates the carrying value (as borrowings under these debt instruments are based on current variable market interest rates as of December31, 2009 and March31, 2010, respectively). (2) The fair values of these debt instruments is based on quoted market prices for these notes on December31, 2009 and March31, 2010, respectively. (3) Collectively referred to as the Parent Notes. IMI is the direct obligor on the Parent Notes, which are fully and unconditionally guaranteed, on a senior subordinated basis, by substantially all of its direct and indirect 100% owned U.S. subsidiaries (the "Guarantors"). These guarantees are joint and several obligations of the Guarantors. Iron Mountain Canada Corporation ("Canada Company") and the remainder of our subsidiaries do not guarantee the Parent Notes. (4) Canada Company is the direct obligor on the Subsidiary Notes, which are fully and unconditionally guaranteed, on a senior subordinated basis, by IMI and the Guarantors. These guarantees are joint and sever

Selected Consolidated Financial

Selected Consolidated Financial Statements of Parent, Guarantors, Canada Company and Non-Guarantors
	3 Months Ended Mar. 31, 2010
Selected Consolidated Financial Statements of Parent, Guarantors, Canada Company and Non-Guarantors
Selected Consolidated Financial Statements of Parent, Guarantors, Canada Company and Non-Guarantors	(6) Selected Consolidated Financial Statements of Parent, Guarantors, Canada Company and Non-Guarantors The following data summarizes the consolidating Company on the equity method of accounting as of December31, 2009 and March31, 2010 and for the three months ended March31, 2009 and 2010. The Parent Notes and the Subsidiary Notes are guaranteed by the subsidiaries referred to below as the "Guarantors." These subsidiaries are 100% owned by the Parent. The guarantees are full and unconditional, as well as joint and several. Additionally, the Parent guarantees the Subsidiary Notes which were issued by Canada Company. Canada Company does not guarantee the Parent Notes. The other subsidiaries that do not guarantee the Parent Notes or the Subsidiary Notes are referred to below as the "Non-Guarantors." December31, 2009 Parent Guarantors Canada Company Non- Guarantors Eliminations Consolidated Assets Current Assets: Cash and Cash Equivalents $ $ 382,588 $ 3,906 $ 60,162 $ $ 446,656 Accounts Receivable 387,670 36,776 160,930 585,376 Intercompany Receivable 1,047,805 8,886 (1,056,691 ) Other Current Assets 4,216 118,780 10,367 46,030 179,393 Total Current Assets 1,052,021 889,038 59,935 267,122 (1,056,691 ) 1,211,425 Property, Plant and Equipment, Net 1,613,985 197,272 756,943 2,568,200 Other Assets, Net: Long-term Notes Receivable from Affiliates and Intercompany Receivable 2,192,476 1,000 (2,193,476 ) Investment in Subsidiaries 1,797,439 1,534,577 (3,332,016 ) Goodwill 1,762,409 191,856 580,448 2,534,713 Other 32,837 300,582 12,210 187,324 (457 ) 532,496 Total Other Assets, Net 4,022,752 3,598,568 204,066 767,772 (5,525,949 ) 3,067,209 Total Assets $ 5,074,773 $ 6,101,591 $ 461,273 $ 1,791,837 $ (6,582,640 ) $ 6,846,834 Liabilities and Equity Intercompany Payable $ $ 999,182 $ $ 57,509 $ (1,056,691 ) $ Current Portion of Long-term Debt 4,639 25,024 2,170 8,728 40,561 Total Other Current Liabilities 62,987 480,557 31,664 198,945 774,153 Long-term Debt, Net of Current Portion 2,848,927 76,728 181,318 104,250 3,211,223 Long-term Notes Payable to Affiliates and Intercompany Payable 1,000 2,192,476 (2,193,476 ) Other Long-term Liabilities 3,853 544,233 24,025 91,772 (457 ) 663,426 Commitments and Contingencies (See Note8) Total Iron Mountain Incorporated Stockholders' Equity 2,153,367 1,783,391 222,096

Segment Information

Segment Information
	3 Months Ended Mar. 31, 2010
Segment Information
Segment Information	(7) Segment Information Corporate and our five operating segments are as follows: North American Physical Businessthroughout the United States and Canada, the storage of paper documents, as well as all other non-electronic media such as microfilm and microfiche, master audio and videotapes, film, X-rays and blueprints, including healthcare information services, vital records services, service and courier operations, and the collection, handling and disposal of sensitive documents for corporate customers ("Hard Copy"); the storage and rotation of backup computer media as part of corporate disaster recovery plans, including service and courier operations ("Data Protection"); information destruction services ("Destruction"); and the storage, assembly, and detailed reporting of customer marketing literature and delivery to sales offices, trade shows and prospective customers' sites based on current and prospective customer orders, which we refer to as the "Fulfillment" business. Worldwide Digital Businessinformation management services for electronic records conveyed via telecommunication lines and the Internet, including online backup and recovery solutions for server data and personal computers, as well as email archiving, third party intellectual property escrow services that protect and manage source code, and electronic discovery services for the legal market that offers in-depth discovery and data investigation solutions. Europeinformation management services throughout Europe, including Hard Copy, Data Protection and Destruction (in the U.K.). Latin Americainformation management services throughout Mexico, Brazil, Chile, Argentina and Peru, including Hard Copy and Data Protection. Asia Pacificinformation management services throughout Australia and New Zealand, including Hard Copy, Data Protection and Destruction; and in certain cities in India, Singapore, Hong Kong-SAR, China, Indonesia and Sri Lanka, including Hard Copy and Data Protection. Corporateconsists of costs related to executive and staff functions, including finance, human resources and information technology, which benefit the enterprise as a whole. These costs are primarily related to the general management of these functions on a corporate level and the design and development of programs, policies and procedures that are then implemented in the individual segments, with each segment bearing its own cost of implementation. Corporate also includes stock-based employee compensation expense associated with all Employee Stock-Based Awards. The Latin America, Asia Pacific and Europe operating segments have been aggregated given their similar economic characteristics, products, customers and processes and reported as one reportable segment, "International Physical Business." The Worldwide Digital Business does not meet the quantitative criteria for a reportable segment; however, management determined that it would disclose such information on a voluntary basis. An analysis of our business segment information and reconciliation to the consolidated financial statements is as follows: North American Physical Business I

Commitments and Contingencies

Commitments and Contingencies
	3 Months Ended Mar. 31, 2010
Commitments and Contingencies
Commitments and Contingencies	(8) Commitments and Contingencies a. Litigation We are involved in litigation from time to time in the ordinary course of business with a portion of the defense and/or settlement costs being covered by various commercial liability insurance policies purchased by us. In the opinion of management, no material legal proceedings are pending to which we, or any of our properties, are subject, except as discussed below. We record legal costs associated with loss contingencies as expenses in the period in which they are incurred. b. Pittsburgh Litigation In May, 2006 we filed an eviction lawsuit against a tenant, Digital Encoding Factory,LLC ("DEF"), leasing space in our Boyers, Pennsylvania records storage facility for its failure to make required rent payments. In October 2006, DEF and two related companies, EDA Acquisition,LLC, and Media Holdings,LLC, filed a lawsuit against us in the U.S. Federal District Court for the Western District of Pennsylvania alleging that they started a digital scanning business in our Boyers, Pennsylvania, records storage facility because we verbally agreed to refer customer digital scanning business in the facility to them (the "Pittsburgh Lawsuit") and promised substantial business. The plaintiffs contend that we breached this alleged verbal agreement and seek to recover damages in the range of $6,500 to $53,500. We dispute the plaintiffs' claims and contend that there was no such verbal agreement. A bench trial occurred in the case in March 2010. We do not expect the judge to issue a decision in the matter for several months. We do not expect that legal proceedings related to this event will have a material impact to our consolidated results of operations or financial condition. c. London Fire In July 2006, we experienced a significant fire in a leased records and information management facility in London, England, that resulted in the complete destruction of the facility and its contents. The London Fire Brigade ("LFB") issued a report in which it was concluded that the fire resulted either from human agency, i.e.,arson, or an unidentified ignition device or source, and its report to the Home Office concluded that the fire resulted from a deliberate act. The LFB also concluded that the installed sprinkler system failed to control the fire due to the primary electric fire pump being disabled prior to the fire and the standby diesel fire pump being disabled in the early stages of the fire by third-party contractors. We have received notices of claims from customers or their subrogated insurance carriers under various theories of liabilities arising out of lost data and/or records as a result of the fire. Certain of those claims have resulted in litigation in courts in the United Kingdom. We deny any liability in respect of the London fire and we have referred these claims to our primary warehouse legal liability insurer, which has been defending them to date under a reservation of rights. Certain of the claims have been settled for nominal amounts, typically one to two British pounds sterling per carton, as specified in the contracts, which amounts have been or will be reimbursed to us from our prima

Subsequent Events

Subsequent Events
	3 Months Ended Mar. 31, 2010
Subsequent Events
Subsequent Events	(9) Subsequent Events We have evaluated subsequent events through the date our financial statements were issued.

Document and Entity Information

Document and Entity Information
	3 Months Ended Mar. 31, 2010	Apr. 26, 2010
Document and Entity Information
Entity Registrant Name	IRON MOUNTAIN INC
Entity Central Index Key	0001020569
Document Type	10-Q
Document Period End Date	2010-03-31
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		203,297,514
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1