Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2015shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q3 |
Trading Symbol | EQIX |
Entity Registrant Name | EQUINIX INC |
Entity Central Index Key | 1,101,239 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 57,285,666 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 335,469 | $ 610,917 |
Short-term investments | 529,395 | |
Accounts receivable, net | 293,125 | 262,570 |
Current portion of restricted cash | 493,425 | 3,057 |
Other current assets | 120,004 | 85,004 |
Total current assets | 1,242,023 | 1,490,943 |
Long-term investments | 4,077 | 439 |
Property, plant and equipment, net | 5,218,595 | 4,998,270 |
Goodwill | 983,530 | 1,002,129 |
Intangible assets, net | 123,454 | 147,527 |
Restricted cash, less current portion | 10,464 | 14,060 |
Other assets | 123,523 | 128,610 |
Total assets | 7,705,666 | 7,781,978 |
Current liabilities: | ||
Accounts payable and accrued expenses | 340,366 | 285,796 |
Accrued property, plant and equipment | 131,607 | 114,469 |
Current portion of capital lease and other financing obligations | 26,775 | 21,362 |
Current portion of mortgage and loans payable | 55,024 | 59,466 |
Current portion of convertible debt | 151,535 | |
Dividends payable | 640,063 | 4,559 |
Other current liabilities | 118,744 | 158,105 |
Total current liabilities | 1,464,114 | 643,757 |
Capital lease and other financing obligations, less current portion | 1,198,581 | 1,168,042 |
Mortgage and loans payable, less current portion | 484,049 | 532,809 |
Convertible debt, less current portion | 145,229 | |
Senior notes | 2,720,448 | 2,717,046 |
Other liabilities | 349,821 | 304,964 |
Total liabilities | $ 6,217,013 | $ 5,511,847 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity: | ||
Common stock | $ 57 | $ 57 |
Additional paid-in capital | 3,467,143 | 3,334,305 |
Treasury stock | (9,913) | (11,411) |
Accumulated dividends | (1,361,675) | (424,387) |
Accumulated other comprehensive loss | (488,012) | (332,443) |
Accumulated deficit | (118,947) | (295,990) |
Total stockholders' equity | 1,488,653 | 2,270,131 |
Total liabilities and stockholders' equity | $ 7,705,666 | $ 7,781,978 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenues | $ 686,649 | $ 620,441 | $ 1,995,405 | $ 1,805,655 |
Costs and operating expenses: | ||||
Cost of revenues | 325,468 | 304,052 | 939,538 | 884,436 |
Sales and marketing | 83,709 | 72,185 | 243,573 | 214,867 |
General and administrative | 123,237 | 109,354 | 356,455 | 324,332 |
Acquisition costs | 13,352 | (281) | 24,374 | 580 |
Total costs and operating expenses | 545,766 | 485,310 | 1,563,940 | 1,424,215 |
Income from operations | 140,883 | 135,131 | 431,465 | 381,440 |
Interest income | 934 | 356 | 2,375 | 2,534 |
Interest expense | (76,269) | (63,756) | (219,556) | (199,450) |
Other income (expense) | (12,836) | 1,811 | (11,964) | 3,170 |
Loss on debt extinguishment | (51,183) | |||
Income from operations before income taxes | 52,712 | 73,542 | 202,320 | 136,511 |
Income tax expense | (11,580) | (30,581) | (25,277) | (42,134) |
Net income | 41,132 | 42,961 | 177,043 | 94,377 |
Net (income) loss attributable to redeemable non-controlling interests | (120) | 1,179 | ||
Net income attributable to Equinix | $ 41,132 | $ 42,841 | $ 177,043 | $ 95,556 |
Earnings per share ("EPS") attributable to Equinix: | ||||
Basic EPS | $ 0.72 | $ 0.81 | $ 3.11 | $ 1.86 |
Weighted-average shares | 57,082 | 53,137 | 56,894 | 51,369 |
Diluted EPS | $ 0.71 | $ 0.79 | $ 3.08 | $ 1.84 |
Weighted-average shares | 57,708 | 55,238 | 57,521 | 54,502 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 41,132 | $ 42,961 | $ 177,043 | $ 94,377 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment ("CTA") loss | (72,677) | (144,994) | (149,546) | (106,943) |
Unrealized gain (loss) on available-for-sale securities | (21) | (862) | 99 | (97) |
Unrealized gain (loss) on cash flow hedges | 3,309 | 4,194 | (425) | 4,448 |
Net investment hedge CTA gain (loss) | 4,426 | (5,963) | ||
Defined benefit plans | 124 | 266 | ||
Total other comprehensive loss, net of tax | (64,839) | (141,662) | (155,569) | (102,592) |
Comprehensive income (loss), net of tax | (23,707) | (98,701) | 21,474 | (8,215) |
Net (income) loss attributable to redeemable non-controlling interests | (120) | 1,179 | ||
Other comprehensive (income) loss attributable to redeemable non-controlling interests | 1,007 | (1,810) | ||
Comprehensive income (loss) attributable to Equinix | $ (23,707) | $ (97,814) | $ 21,474 | $ (8,846) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 177,043 | $ 94,377 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 362,069 | 328,774 |
Stock-based compensation | 98,575 | 86,473 |
Excess tax benefits from stock-based compensation | (1,663) | (17,457) |
Amortization of intangible assets | 19,346 | 20,953 |
Amortization of debt issuance costs and debt discounts | 11,557 | 14,840 |
Provision for allowance for doubtful accounts | 4,187 | 5,326 |
Loss on debt extinguishment | 51,183 | |
Other items | 12,825 | 14,684 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (42,002) | (104,394) |
Income taxes, net | (84,523) | (69,173) |
Other assets | (30,829) | 6,128 |
Accounts payable and accrued expenses | 75,219 | 27,110 |
Other liabilities | 57,871 | 28,299 |
Net cash provided by operating activities | 659,675 | 487,123 |
Cash flows from investing activities: | ||
Purchases of investments | (338,440) | (136,516) |
Sales of investments | 826,486 | 550,355 |
Maturities of investments | 35,431 | 207,341 |
Business acquisitions, net of cash acquired | (10,247) | |
Purchases of real estate | (38,282) | (16,791) |
Purchases of other property, plant and equipment | (587,508) | (421,726) |
Changes in restricted cash | (493,371) | 1,579 |
Other investing activities, net | (170) | |
Net cash provided by (used in) investing activities | (605,931) | 184,072 |
Cash flows from financing activities: | ||
Purchases of treasury stock | (297,958) | |
Proceeds from employee equity awards | 29,855 | 28,183 |
Excess tax benefits from stock-based compensation | 1,663 | 17,457 |
Payment of dividends | (291,009) | |
Proceeds from loans payable | 490,000 | 8,826 |
Repayment of convertible debt | (29,479) | |
Repayment of capital lease and other financing obligations | (20,213) | (13,140) |
Repayment of mortgage and loans payable | (529,447) | (37,510) |
Debt extinguishment costs | (22,552) | |
Debt issuance costs | (617) | |
Purchase of redeemable non-controlling interests | (226,276) | |
Net cash used in financing activities | (319,768) | (572,449) |
Effect of foreign currency exchange rates on cash and cash equivalents | (9,424) | (6,459) |
Net increase (decrease) in cash and cash equivalents | (275,448) | 92,287 |
Cash and cash equivalents at beginning of period | 610,917 | 261,894 |
Cash and cash equivalents at end of period | $ 335,469 | $ 354,181 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | 1. Basis of Presentation and Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared by Equinix, Inc. (“Equinix” or the “Company”) and reflect all adjustments, consisting only of normal recurring adjustments, which in the opinion of management are necessary to fairly state the financial position and the results of operations for the interim periods presented. The condensed consolidated balance sheet data as of December 31, 2014 has been derived from audited consolidated financial statements as of that date. The consolidated financial statements have been prepared in accordance with the regulations of the Securities and Exchange Commission (“SEC”), but omit certain information and footnote disclosure necessary to present the statements in accordance with generally accepted accounting principles in the United States of America (“GAAP”). For further information, refer to the Consolidated Financial Statements and Notes thereto included in Equinix’s Form 10-K as filed with the SEC on March 2, 2015. Results for the interim periods are not necessarily indicative of results for the entire fiscal year. Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Equinix and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Income Taxes In September 2012, the Company announced that its Board of Directors approved a plan for Equinix to pursue conversion to a real estate investment trust (“REIT”). On December 23, 2014, its Board of Directors formally approved its conversion to a REIT effective on January 1, 2015. The Company completed the implementation of the REIT conversion in 2014, and as a result, the Company has elected to be treated as a REIT for federal income tax purposes effective January 1, 2015. In May 2015, the Company received a favorable response to the private letter ruling (“PLR”) it had requested from the U.S. Internal Revenue Service (“IRS”) in connection with the Company’s conversion to a REIT for federal income tax purposes. As a result, the Company may deduct the distributions made to its shareholders from taxable income generated by the Company and its Qualified REIT Subsidiaries (“QRSs”). The Company’s dividends paid deduction generally eliminates the taxable income of the Company and its QRSs, resulting in no U.S. income tax due. However, the Taxable REIT Subsidiaries (“TRSs”) will continue to be subject to income taxes on any taxable income generated by them. In addition, the foreign operations of the Company will continue to be subject to local income taxes regardless of whether the foreign operations are operated as a QRS or a TRS. The Company provides for income taxes during interim periods based on the estimated effective tax rate for the year. The effective tax rate is subject to change in the future due to various factors such as the operating performances of the Company, tax law changes and future business acquisitions. The Company’s effective tax rates were 12.5% and 30.9% for the nine months ended September 30, 2015 and 2014, respectively. The decrease in the effective tax rate is primarily due to the reduced tax rate as a result of the REIT conversion. As a REIT, the Company is entitled to a deduction for dividends paid, resulting in a substantial reduction of federal income tax expense. Recent Accounting Pronouncements In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-16, Business Combinations, to simplify accounting for adjustments made to provisional amounts recognized in a business combination by eliminating the requirement to retrospectively account for those adjustments. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years, with early adoption permitted. The amendments in this ASU require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization or other income effects as a result of changes to provisional amounts, calculated as if the accounting had been completed at the acquisition date. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements. In May 2015, the FASB issued ASU 2015-07, Fair Value Measurement (“ASU 2015-07”), which permits a reporting entity, as a practical expedient, to measure the fair value of certain investments using the net asset value per share of the investment. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years with early adoption permitted. A reporting entity should apply the amendment retrospectively to all periods presented. The retrospective approach requires that an investment for which fair value is measured using the net asset value per share practical expedient be removed from the fair value hierarchy in all periods presented in an entity’s financial statements. The Company does not believe the adoption of ASU 2015-07 will have a significant impact on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (“ASU 2015-03”), to simplify the presentation of debt issuance costs. The ASU requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs is not affected by this ASU. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016, with early adoption permitted. In August 2015, the FASB issued ASU 2015-15, Interest – Imputation of Interest Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (“ASU 2015-15”), which amends ASU 2015-03 and provides guidance for the presentation of debt issuance costs associated with line-of-credit arrangements. ASU 2015-15 provides that debt issuance costs associated with line-of-credit arrangements may be presented in the balance sheet as assets. The Company adopted ASU 2015-03 and ASU 2015-15 in the three months ended September 30, 2015. As a result of the adoption of ASU 2015-03 the Company reclassified debt issuance costs of $35,455,000 at December 31, 2014 and $31,448,000 at September 30, 2015 from other assets to debt. In February 2015, the FASB issued ASU 2015-02, Consolidations (“ASU 2015-02”). This ASU requires companies to adopt a new consolidation model, specifically: (1) the ASU modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; (2) the ASU eliminates the presumption that a general partner should consolidate limited partnership; (3) the ASU affects the consolidation analysis of reporting entities involved with VIEs and (4) the ASU provides a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. This ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements. In January 2015, FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items (“ASU 2015-01”), to simplify the income statement presentation requirements by eliminating the concept of extraordinary items. ASU 2015-01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not believe the adoption of ASU 2015-01 will have a significant impact on its consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”), to provide guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016, with early adoption permitted. The Company does not believe the adoption of ASU 2014-15 will have a significant impact on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). This ASU requires companies to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which companies expect to be entitled in exchange for those goods or services. This ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. This ASU was originally effective for fiscal years and interim periods beginning after December 15, 2016. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (“ASU 2015-14”), which amends ASU 2014-09 and defers its effective date to fiscal years and interim reporting periods beginning after December 15, 2017. ASU 2015-14 permits earlier application only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 2. Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the periods presented (in thousands, except per share amounts): Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 Net income $ 41,132 $ 42,961 $ 177,043 $ 94,377 Net (income) loss attributable to redeemable non-controlling interests — (120 ) — 1,179 Net income attributable to Equinix, basic 41,132 42,841 177,043 95,556 Effect of assumed conversion of convertible debt: Interest expense, net of tax — 885 — 4,862 Net income attributable to Equinix, basic and diluted $ 41,132 $ 43,726 $ 177,043 $ 100,418 Weighted-average shares used to calculate basic EPS 57,082 53,137 56,894 51,369 Effect of dilutive securities: Convertible debt — 1,621 — 2,673 Employee equity awards 626 480 627 460 Weighted-average shares used to calculate diluted EPS 57,708 55,238 57,521 54,502 EPS attributable to Equinix: Basic EPS $ 0.72 $ 0.81 $ 3.11 $ 1.86 Diluted EPS $ 0.71 $ 0.79 $ 3.08 $ 1.84 The following table sets forth weighted-average outstanding potential shares of common stock that are not included in the diluted earnings per share calculation above because to do so would be anti-dilutive for the periods indicated (in thousands): Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 Shares reserved for conversion of 4.75% convertible subordinated notes 1,970 1,873 1,956 3,042 Common stock related to employee equity awards 201 156 117 176 2,171 2,029 2,073 3,218 |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | 3. Acquisitions Nimbo Acquisition On January 14, 2015, the Company acquired all of the issued and outstanding share capital of Nimbo Technologies Inc. (“Nimbo”), a company which specializes in migrating business applications to the cloud with extensive experience moving legacy applications into a hybrid cloud architecture, and connecting legacy data centers to the cloud, for a cash payment of $10,000,000 and a contingent earn-out arrangement to be paid over two years (the “Nimbo Acquisition”). Nimbo continues to operate under the Nimbo name. The Nimbo Acquisition was accounted for using the acquisition method. As a result of the Nimbo Acquisition, the Company recorded goodwill of $17,154,000, which represents the excess of the total purchase price over the fair value of the assets acquired and liabilities assumed. The Company recorded the contingent earn-out arrangement at its estimated fair value. The results of operations for Nimbo are not significant to the Company; therefore, the Company does not present its purchase price allocation or pro forma combined results of operations. In addition, any prospective changes in the Company’s earn-out estimates are not expected to have a material effect on the Company’s consolidated statement of operations. Offer for TelecityGroup On May 29, 2015, the Company announced a cash and share offer for the entire issued and to be issued share capital of Telecity Group plc (“TelecityGroup”) for total consideration of approximately £2,351,900,000 or $3,594,409,000. The consummation of the transaction is subject to the satisfaction of certain conditions, including the receipt of regulatory approval, as further described in “Risk Factors”. The Company expects to close this transaction in the first half of 2016. As the offer to TelecityGroup includes an element of cash, the Company is required to include a confirmation that the Company has sufficient cash available to fulfill the offer, according to the UK Takeover Code. As a result, the Company placed £322,851,000 or approximately $493,801,000 into a restricted cash account, which was included in the current portion of restricted cash in its condensed consolidated balance sheet. Also, during the three months ended September 30, 2015, the Company entered into various option and forward contracts for the purposes of hedging a portion of the purchase price of the TelecityGroup Acquisition which resulted in a mark-to-market foreign currency loss of $11,636,000 for the three and nine months ended September 30, 2015 recorded in other income (expense) in the accompanying Statements of Operations. In addition, the Company entered into a bridge credit agreement with J.P. Morgan Chase Bank, N.A. (“JPMCB”) as the initial lender and as administrative agent for the lenders from time to time party thereto (the “Lenders”) for a principal amount of £875,000,000 or approximately $1,340,000,000 (the “Bridge Loan”). The Bridge Loan has an initial maturity of 12 months from the date of the first drawdown and, at the initial maturity date (if not repaid prior to that time), will be converted into seven-year extended bridge loans. The total estimated initial commitment fees associated with the Bridge Loan are approximately £4,375,000 or $6,701,000 at the exchange rate in effect on May 28, 2015, and will be paid on the earlier of the consummation of the acquisition and the termination of the Bridge Loan. As of September 30, 2015, the Company had accrued commitment fees of approximately $4,970,000 associated with the Bridge Loan in interest expense in its condensed consolidated statement of operations. The Bridge Loan bears interest during the first three months in which the funds are advanced, at an initial annual rate of LIBOR plus 5.00%. Thereafter, the rate for each subsequent three-month period increases by 0.5% over the applicable margin in effect for the immediately preceding three-month period, subject to a cap (the “Total Cap”). Prior to February 28, 2016, the Total Cap is equal to 1.50% plus the greatest of (i) the yield on the Company’s 5.750% senior notes due 2025, (ii) the yield on the J.P. Morgan US Dollar Global High Yield Index minus 1.21% and (iii) 4.875%. On and after February 28, 2016, the Total Cap is equal to 1.75% plus the greatest of (i) the yield on the Company’s 5.750% senior notes due 2025, (ii) the yield on the J.P. Morgan US Dollar Global High Yield Index minus 1.21% and (iii) 4.875%. Under certain circumstances the Bridge Loan will bear interest at the Total Cap as determined weekly. The Bridge Loan is unsecured and is guaranteed by certain of the Company’s domestic subsidiaries. As of September 30, 2015, the Company had not made any advances on the Bridge Loan. The Company intends to obtain permanent financing prior to the closing of the TelecityGroup acquisition to replace and terminate the Bridge Loan. Offer for Bit-isle On September 8, 2015, the Company announced that, acting through its Japanese subsidiary, it had commenced a cash tender offer for all issued and outstanding shares of Tokyo-based Bit-isle Inc. (“Bit-isle”). The offer price was ¥922.0 per share, in an all cash transaction totaling ¥33,300,000,000 or approximately $280,000,000. The tender offer period ran from September 9, 2015 to October 26, 2015. The offer was conditioned on, among other things, the tender by Bit-isle shareholders of more than 66 2/3% of the Bit-isle shares and approximately 97% of shares (including stock options) were tendered. The Company will move forward to acquire the remaining shares under Japanese corporate law. The Company expects to complete the acquisition by the end of 2015. On September 30, 2015, the Company, acting through its Japanese subsidiaries, as borrowers, entered into a Term Loan Agreement (the “Bridge Term Loan Agreement”) with The Bank of Tokyo-Mitsubishi UFJ, Ltd. (“BTMU”). Pursuant to the Bridge Term Loan Agreement, BTMU has committed to provide a senior bridge term loan facility (the “Bridge Term Loan”) in the amount of up to ¥47,500,000,000, or approximately $395,833,000, at the exchange rate in effect on September 30, 2015. Proceeds from the Bridge Term Loan are to be used exclusively for the acquisition of Bit-isle, the repayment of Bit-isle’s existing debt and transaction costs incurred in connection with the closing of the Bridge Term Loan and the acquisition of Bit-isle. As of September 30, 2015, there have been no borrowings on the Bridge Term Loan. In October 2015, Company had the first draw down of JPY27,260,000,000 or approximately $226,940,000, at the exchange rate in effect on September 30, 2015 in preparation of closing the transaction. The Bridge Term Loan is due one year after borrowing the first tranche. Borrowings under the Bridge Loan will bear interest at the Tokyo Interbank Offered Rate for Japanese Yen, plus a margin of 0.4% per annum for the first ten months following the borrowing of the first tranche of the Bridge Loan, which margin increases to 1.75% per annum thereafter. The Company intends to obtain permanent financing to replace and terminate the Bridge Term Loan prior to the maturity date. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 4. Derivatives and Hedging Activities Derivatives Designated as Hedging Instruments Net Investment Hedges. Cash Flow Hedges. Effective January 1, 2015, the Company entered into intercompany derivative hedging instruments (“intercompany derivatives”) with a wholly-owned subsidiary of the Company and simultaneously entered into derivative contracts with unrelated parties to hedge certain forecasted revenues and expenses denominated in currencies other than the U.S. dollar. The following disclosure is prepared on a consolidated basis; intercompany assets and liabilities resulting from intercompany derivatives are eliminated in consolidation. As of September 30, 2015, the Company’s cash flow hedges had maturities within 1 month to 2.25 years, as follows (in thousands): Notional Fair Value (1) Accumulated other Derivative assets $ 345,806 $ 11,171 $ 23,874 Derivative liabilities 92,137 (2,310 ) (15,637 ) $ 437,943 $ 8,861 $ 8,237 (1) All derivative assets related to cash flow hedges are included in the condensed consolidated balance sheets within other current assets, other assets, other current liabilities and other liabilities. (2) Included in the condensed consolidated balance sheets within accumulated other comprehensive income (loss). (3) The Company recorded a net gain of $8,112 within accumulated other comprehensive income (loss) relating to cash flow hedges that will be reclassified to revenue and expenses as they mature in the next 12 months. As of December 31, 2014, the Company’s cash flow hedges had maturities within 1 month to 1 year as follows (in thousands): Notional Fair Value (1) Accumulated other Derivative assets $ 281,055 $ 8,404 $ 8,480 Derivative liabilities — — — $ 281,055 $ 8,404 $ 8,480 (1) All derivative assets related to cash flow hedges are included in the condensed consolidated balance sheets within other current assets, other assets, other current liabilities and other liabilities. (2) Included in the condensed consolidated balance sheets within accumulated other comprehensive income (loss). During the three months ended September 30, 2015 and 2014, there were no ineffective cash flow hedges. During the three months ended September 30, 2015, the amount of gains reclassified from accumulated other comprehensive income (loss) to revenue were $5,590,000 and the amount of net losses reclassified from accumulated other comprehensive income (loss) to operating expenses were insignificant. During the three months ended September 30, 2014, the amount of gains (losses) reclassified from accumulated other comprehensive income (loss) to revenue and operating expenses were not significant. During the nine months ended September 30, 2015 and 2014, there were no ineffective cash flow hedges. During the nine months ended September 30, 2015, gains of $21,096,000 were reclassified from accumulated other comprehensive income (loss) to revenue and net losses of $4,167,000 were reclassified from accumulated other comprehensive income (loss) to operating expenses. During the nine months ended September 30, 2014, net gains (losses) reclassified from accumulated other income (loss) to revenues and operating expenses were not significant. Derivatives Not Designated as Hedging Instruments Embedded Derivatives Economic Hedges of Embedded Derivatives. Foreign Currency Forward and Option Contracts. Offsetting Derivative Assets and Liabilities The following table presents the fair value of derivative instruments recognized in the Company’s condensed consolidated balance sheets as of September 30, 2015 (in thousands): Gross Gross Net amounts Gross Net Assets: Designated as hedging instruments: Foreign currency forward contracts $ 11,171 $ — $ 11,171 $ (2,310 ) $ 8,861 Not designated as hedging instruments: Embedded derivatives 10,411 — 10,411 — 10,411 Economic hedges of embedded derivatives 17 — 17 (17 ) — Foreign currency forward and option contracts 18,942 — 18,942 (10,655 ) 8,287 29,370 — 29,370 (10,672 ) 18,698 Additional netting benefit — — — (4,223 ) (4,223 ) $ 40,541 $ — $ 40,541 $ (17,205 ) $ 23,336 Liabilities: Designated as hedging instruments: Foreign currency forward contracts $ 2,310 $ — $ 2,310 $ (2,310 ) $ — Not designated as hedging instruments: Embedded derivatives 1,649 — 1,649 — 1,649 Economic hedges of embedded derivatives 194 — 194 (17 ) 177 Foreign currency forward and option contracts 15,182 — 15,182 (10,655 ) 4,527 17,025 — 17,025 (10,672 ) 6,353 Additional netting benefit — — — (4,223 ) (4,223 ) $ 19,335 $ — $ 19,335 $ (17,205 ) $ 2,130 (1) As presented in the Company’s condensed consolidated balance sheets within other current assets, other assets, other current liabilities and other liabilities. (2) The Company enters into master netting agreements with its counterparties for transactions other than embedded derivatives to mitigate credit risk exposure to any single counterparty. Master netting agreements allow for individual derivative contracts with a single counterparty to offset in the event of default. The following table presents the fair value of derivative instruments recognized in the Company’s condensed consolidated balance sheets as of December 31, 2014 (in thousands): Gross Gross Net balance Gross Net Assets: Designated as hedging instruments: Foreign currency forward contracts $ 8,404 $ — $ 8,404 $ — $ 8,404 Not designated as hedging instruments: Embedded derivatives 9,182 — 9,182 — 9,182 Foreign currency forward and option contracts 5,153 — 5,153 (138 ) 5,015 14,335 — 14,335 (138 ) 14,197 Additional netting benefit — — — (508 ) (508 ) $ 22,739 $ — $ 22,739 $ (646 ) $ 22,093 Liabilities: Designated as hedging instruments: Foreign currency forward contracts $ — $ — $ — $ — $ — Not designated as hedging instruments: Embedded derivatives 4 — 4 — 4 Economic hedges of embedded derivatives 390 — 390 — 390 Foreign currency forward and option contracts 416 — 416 (138 ) 278 810 — 810 (138 ) 672 Additional netting benefit — — — (508 ) (508 ) $ 810 $ — $ 810 $ (646 ) $ 164 (1) As presented in the Company’s condensed consolidated balance sheets within other current assets, other assets, other current liabilities and other liabilities. (2) The Company enters into master netting agreements with its counterparties for transactions other than embedded derivatives to mitigate credit risk exposure to any single counterparty. Master netting agreements allow for individual derivative contracts with a single counterparty to offset in the event of default. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements The Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2015 were as follows (in thousands): Fair value at 2015 Fair value Level 1 Level 2 Assets (1): Money market and deposit accounts $ 8,020 $ 8,020 $ — Certificates of deposit 4,077 — 4,077 Derivative instruments (2) 40,541 — 40,541 $ 52,638 $ 8,020 $ 44,618 Liabilities: Derivative instruments (2) $ 19,335 $ — $ 19,335 $ 19,335 $ — $ 19,335 (1) Excludes cash and restricted cash. (2) Includes both foreign currency embedded derivatives and foreign currency forward contracts. Amounts are included within other current asset, other assets, others current liabilities and other liabilities in the Company’s accompanying consolidated condensed balance sheet. The Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 were as follows (in thousands): Fair value at 2014 Fair value measurement using Level 1 Level 2 Assets (1): Money market and deposit accounts $ 402,964 $ 402,964 $ — U.S. government securities 336,440 336,440 — U.S. government agency securities 192,955 — 192,955 Certificates of deposit 439 — 439 Derivative instruments (2) 22,739 — 22,739 $ 955,537 $ 739,404 $ 216,133 Liabilities: Derivative instruments (2) $ 810 $ — $ 810 $ 810 $ — $ 810 (1) Excludes cash and restricted cash (2) Includes embedded derivatives and foreign currency forward contracts. Amounts are included within other current assets, other assets, other current liabilities and other liabilities in the Company’s accompanying condensed consolidated balance sheet. The Company did not have any significant Level 3 financial assets or financial liabilities as of September 30, 2015 and December 31, 2014. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2015 | |
Leases [Abstract] | |
Leases | 6. Leases Capital Lease and Other Financing Obligations Atlanta 1 Capital Lease In May 2015, the Company entered into a lease amendment to extend the lease term of the Company’s Atlanta 1 IBX (the “AT1 Lease”). The lease was originally accounted for as an operating lease. Pursuant to the accounting standard for leases, the Company reassessed the lease classification of the AT1 Lease as a result of the lease amendment and determined that upon the amendment the lease should be accounted for as a capital lease. The Company recorded a capital lease asset and liability totaling approximately $21,274,000 during the three months ended June 30, 2015. The lease term was extended to September 2035. Atlanta 2 Capital Lease In January 2015, the Company entered into a lease amendment to extend the lease term of the Company’s Atlanta 2 IBX (the “AT2 Lease”). The lease was originally accounted for as an operating lease. Pursuant to the accounting standard for leases, the Company reassessed the lease classification of the AT2 Lease as a result of the lease amendment and determined that upon the amendment the lease should be accounted for as a capital lease. The Company recorded a capital lease asset totaling approximately $25,960,000 and a capital lease liability totaling approximately $26,230,000 during the three months ended March 31, 2015. The lease term, including a renewal option, was extended to December 2024. Maturities of Capital Lease and Other Financing Obligations The Company’s capital lease and other financing obligations are summarized as follows (in thousands): Capital lease Other Total 2015 (3 months remaining) $ 18,735 $ 13,638 $ 32,373 2016 68,032 55,761 123,793 2017 70,086 58,794 128,880 2018 72,151 60,231 132,382 2019 74,063 58,412 132,475 Thereafter 904,734 559,075 1,463,809 Total minimum lease payments 1,207,801 805,911 2,013,712 Plus amount representing residual property value — 408,683 408,683 Less estimated building costs — (4,580 ) (4,580 ) Less amount representing interest (573,481 ) (618,978 ) (1,192,459 ) Present value of net minimum lease payments 634,320 591,036 1,225,356 Less current portion (18,399 ) (8,376 ) (26,775 ) $ 615,921 $ 582,660 $ 1,198,581 1. Other financing obligations are primarily build-to-suit lease obligations. |
Debt Facilities
Debt Facilities | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt Facilities | 7. Debt Facilities Mortgage and Loans Payable The Company’s mortgage and loans payable consisted of the following (in thousands): September 30, December 31, Term loan $ 475,631 $ 500,000 ALOG financings (1) 32,766 56,863 Mortgage payable and other loans payable 31,505 36,608 539,902 593,471 Less amount representing debt discount and debt issuance cost (2) (2,891 ) (3,477 ) Plus amount representing mortgage premium 2,062 2,281 539,073 592,275 Less current portion (55,024 ) (59,466 ) $ 484,049 $ 532,809 (1) ALOG Data Centers do Brasil S.A. (2) The Company adopted ASU 2015-03 during the three months ended September 30, 2015. As a result, debt issuance costs of $1,594,000 and $1,877,000 were reclassified from other assets to debt as of September 30, 2015 and December 31, 2014, respectively. On April 30, 2015, the Company, as borrower, and certain subsidiaries as guarantors entered into an amendment (the “Amendment”) to its credit agreement dated December 17, 2014 (the “Original Credit Agreement” and, as amended, the “Amended Credit Agreement”). The Original Credit Agreement provided for a senior credit facility of $1,500,000,000, comprised of (i) a $1,000,000,000 senior secured multi-currency revolving credit facility and (ii) a $500,000,000 senior secured term loan facility (the “Term Loan Facility”). The Amended Credit Agreement facilitated the conversion of the outstanding U.S. dollar-denominated principal amount of the Term Loan Facility to an approximately equivalent amount denominated in four foreign currencies. In connection with the execution of the Amended Credit Agreement, on April 30, 2015 the Company prepaid the U.S. dollar-denominated $490,000,000 principal balance of the Term Loan Facility and immediately re-borrowed under the Term Loan Facility the aggregate principal amounts of CHF 47,780,000, €184,945,000, £92,586,000 and ¥11,924,000,000, or approximately $490,000,000. The Company accounted for this transaction as a debt modification. The Company did not incur any gains or losses relating to the debt modification. The Company will repay the Term Loan Facility in equal quarterly installments on the last business day of each March, June, September and December, commencing on June 30, 2015, equal to the amount of 2.00% of the result of the respective Term Loan Facility on April 30, 2015 divided by 0.98. The remaining principal amount will be paid on the maturity date of the Term Loan Facility. Convertible Debt The Company’s convertible debt consisted of the following (in thousands): September 30, December 31, 4.75% convertible subordinated notes $ 157,885 $ 157,885 Less amount representing debt discount and debt issuance cost (1) (6,350 ) (12,656 ) $ 151,535 $ 145,229 (1) The Company adopted ASU 2015-03 during the three months ended September 30, 2015. As a result, debt issuance costs of $303,000 and $624,000 were reclassified from other assets to debt as of September 30, 2015 and December 31, 2014, respectively. 4.75% Convertible Subordinated Notes Holders of the 4.75% convertible subordinated notes were eligible to convert their notes during the quarter ended September 30, 2015 and are eligible to convert their notes during the three months ending December 31, 2015, since the stock price condition conversion clause was met during the applicable periods. As of September 30, 2015, had the holders of the 4.75% convertible subordinated notes converted their notes, the 4.75% convertible subordinated notes would have been convertible into a maximum of 1,976,736 shares of the Company’s common stock. The 4.75% convertible subordinated notes are scheduled to mature on June 15, 2016. Upon maturity (and assuming that no conversion occurs prior to such maturity), the Company will be obligated to settle any outstanding principal amount of the notes and accrued interest in cash. In addition, should conversion occur prior to maturity, the Company may, at its election, settle the obligation either in cash, stock or a combination of cash and stock. To minimize the impact of potential dilution upon conversion of the 4.75% convertible subordinated notes, the Company entered into capped call transactions (the “Capped Call”) separate from the issuance of the 4.75% convertible subordinated notes and paid a premium of $49,664,000 for the Capped Call in 2009. The Capped Call covers a total of approximately 4,432,638 shares of the Company’s common stock, subject to adjustment. Under the Capped Call, the Company effectively raised the conversion price of the 4.75% convertible subordinated notes from $84.32 to $114.82. Pursuant to the declaration of the quarterly dividend in July 2015, the Company further amended the Capped Call agreement to adjust the effective conversion price of the 4.75% convertible subordinated notes from $79.87 to $108.68 per share of common stock. Depending upon the Company’s stock price at the time the 4.75% convertible subordinated notes are redeemed, the settlement of the Capped Call will result in a delivery of up to 1,240,460 shares of the Company’s common stock to the Company; however, the Company will receive no benefit from the Capped Call if the Company’s stock price is $79.87 or lower at the time of conversion and will receive less shares than the 1,240,460 share maximum as described above for share prices in excess of $108.68 at the time of conversion than it would have received at a share price of $108.68 (the Company’s benefit from the Capped Call is capped at $108.68 and the benefit received begins to decrease above this price). Senior Notes The Company’s senior notes consisted of the following as of (in thousands): September 30, December 31, 5.375% Senior Notes due 2023 $ 1,000,000 $ 1,000,000 5.375% Senior Notes due 2022 750,000 750,000 4.875% Senior Notes due 2020 500,000 500,000 5.75% Senior Notes due 2025 500,000 500,000 2,750,000 2,750,000 Less amount representing debt issuance cost (1) (29,552 ) (32,954 ) $ 2,720,448 $ 2,717,046 (1) The Company adopted ASU 2015-03 during the three months ended September 30, 2015, which resulted in a reclass of debt issuance costs from other assets to debt. Maturities of Debt Facilities The following table sets forth maturities of the Company’s debt, including mortgage and loans payable, convertible debt and senior notes and excluding debt discounts and premium as of September 30, 2015 (in thousands): Year ending: 2015 (3 months remaining) $ 16,268 2016 212,791 2017 50,100 2018 46,565 2019 345,401 Thereafter 2,778,724 $ 3,449,849 Fair Value of Debt Facilities The following table sets forth the estimated fair values of the Company’s mortgage and loans payable, senior notes and convertible debt, including current maturities, as of (in thousands): September 30, December 31, Mortgage and loans payable $ 539,187 $ 553,045 Convertible debt 160,600 162,159 Senior notes 2,731,233 2,790,023 The Company has determined that the inputs used to value its debt facilities fall within Level 2 of the fair value hierarchy. Interest Charges The following table sets forth total interest costs incurred and total interest costs capitalized for the periods presented (in thousands): Three months ended Nine months ended 2015 2014 2015 2014 Interest expense $ 76,269 $ 63,756 $ 219,556 $ 199,450 Interest capitalized 1,831 5,565 8,677 13,050 Interest charges incurred $ 78,100 $ 69,321 $ 228,233 $ 212,500 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Purchase Commitments Primarily as a result of the Company’s various IBX expansion projects, as of September 30, 2015, the Company was contractually committed for $244.7 million of unaccrued capital expenditures, primarily for IBX equipment not yet delivered and labor not yet provided, in connection with the work necessary to open these IBX data centers and make them available to customers for installation. In addition, the Company had numerous other, non-capital purchase commitments in place as of September 30, 2015, such as commitments to purchase power in select locations through the remainder of 2015 and thereafter, and other open purchase orders for goods or services to be delivered or provided during the remainder of 2015 and thereafter. Such other miscellaneous purchase commitments totaled $395.9 million as of September 30, 2015. In connection with the cash and share offer to TelecityGroup, the Company has entered into a cooperation agreement with TelecityGroup to secure the clearances and authorization necessary to satisfy the regulatory pre-condition to the TelecityGroup acquisition. The Company has agreed to pay to TelecityGroup £50,000,000 or approximately $76,415,000 if: (i) on or prior to November 29, 2016, the Company invokes the regulatory approvals condition, or (ii) on November 29, 2016, the regulatory approvals condition is not satisfied or waived by the Company. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | 9. Stockholders’ Equity Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of tax, are as follows (in thousands): Balance as of Net Balance as of Foreign currency translation adjustment (“CTA”) gain (loss) $ (336,946 ) $ (149,546 ) $ (486,492 ) Unrealized gain (loss) on cash flow hedges 6,603 (425 ) 6,178 Unrealized gain (loss) on available-for-sale securities (99 ) 99 — Net investment hedge CTA loss — (5,963 ) (5,963 ) Defined benefit plans (2,001 ) 266 (1,735 ) $ (332,443 ) $ (155,569 ) $ (488,012 ) Changes in foreign currency exchange rates can have a significant impact to the Company’s consolidated balance sheets (as evidenced above in the Company’s foreign currency translation gain or loss), as well as its consolidated results of operations, as amounts in foreign currencies are generally translating into more U.S. dollars when the U.S. dollar weakens or less U.S. dollars when the U.S. dollar strengthens. As of September 30, 2015, the U.S. dollar was generally stronger relative to certain of the currencies of the foreign countries in which the Company operates. This overall strength of the U.S. dollar had an overall unfavorable impact on the Company’s consolidated financial position because the foreign denominations translated into less U.S. dollars as evidenced by an increase in foreign currency translation loss for the nine months ended September 30, 2015 as reflected in the above table. In future periods, the volatility of the U.S. dollar as compared to the other currencies in which the Company operates could have a significant impact on its consolidated financial position and results of operations including the amount of revenue that the Company reports in future periods. Dividends In September 2015, the Company’s Board of Directors declared a special distribution of $627,289,000, or approximately $10.95 per share (the “2015 Special Distribution”), to its common stockholders. The 2015 Special Distribution represents an amount that includes the sum of: (1) foreign earnings and profits repatriated as dividend income in 2015; (2) taxable income in 2015 from depreciation recapture in respect of accounting method changes commenced in the Company’s pre-REIT period; and (3) certain other items of taxable income. The Company expects that the value of the 2015 Special Distribution, plus all of its other distributions during 2015, will equal or exceed the taxable income the Company expects to recognize in 2015. The 2015 Special Distribution is payable on November 10, 2015 to the Company’s common stockholders of record as of the close of business on October 8, 2015. Common stockholders can elect to receive payment of the 2015 Special Distribution in the form of stock or cash, with total cash payment to all stockholders limited to no more than $125.4 million, or 20% of the total distribution. The amount of common stock to be distributed will be determined based upon the average closing price of the common stock on the three consecutive trading days commencing November 3, 2015. On July 29, 2015, the Company declared a quarterly cash dividend of $1.69 per share, with a record date of August 26, 2015 and a payment date of September 16, 2015. The Company paid a total of $96,408,000 on September 16, 2015 for the third quarter cash dividend. In addition, the Company accrued an additional $2,244,000 in dividends payable for the restricted stock units that have not yet vested. On May 7, 2015, the Company declared a quarterly cash dividend of $1.69 per share, with a record date of May 27, 2015 and a payment date of June 17, 2015. The Company paid a total of $96,203,000 on June 17, 2015 for the second quarter cash dividend. In addition, the Company accrued an additional $2,443,000 in dividends payable for the restricted stock units that have not yet vested. On February 19, 2015, the Company declared a quarterly cash dividend of $1.69 per share, with a record date of March 11, 2015 and a payment date of March 25, 2015. The Company paid a total of $96,196,000 on March 25, 2015 for the first quarter cash dividend. In addition, the Company accrued an additional $2,630,000 in dividends payable for the restricted stock units that have not yet vested. Stock-Based Compensation In February 2015, the Compensation Committee and the Stock Award Committee of the Company’s Board of Directors approved the issuance of an aggregate of 586,646 shares of restricted stock units to certain employees, including executive officers, pursuant to the 2000 Equity Incentive Plan, as part of the Company’s annual refresh program. These equity awards are subject to vesting provisions and have a weighted-average grant date fair value of $222.40 and a weighted-average requisite service period of 3.44 years. The valuation of restricted stock units with only a service condition or a service and performance condition requires no significant assumptions as the fair value for these types of equity awards is based solely on the fair value of the Company’s stock price on the date of grant. In connection with the Company’s REIT conversion, the Company used revenue and adjusted funds from operations (“AFFO”) as the performance measurements in the restricted stock units with both service and performance conditions that were granted in February 2015, whereby revenue and adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) were used as the performance measurements in prior years’ grants. The Company uses a Monte Carlo simulation option-pricing model to determine the fair value of restricted stock units with a service and market condition. There were no significant changes in the assumptions used to determine the fair value of restricted stock units with a service and market condition that were granted in 2015 compared to the prior year. The following table presents, by operating expense category, the Company’s stock-based compensation expense recognized in the Company’s condensed consolidated statement of operations (in thousands): Three months ended Nine months ended 2015 2014 2015 2014 Cost of revenues $ 2,514 $ 2,145 $ 7,371 $ 6,243 Sales and marketing 9,173 7,256 27,806 22,199 General and administrative 22,282 18,261 63,398 58,031 $ 33,969 $ 27,662 $ 98,575 $ 86,473 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | 10. Segment Information While the Company has a single line of business, which is the design, build-out and operation of IBX data centers, it has determined that it has three reportable segments comprised of its Americas, EMEA and Asia-Pacific geographic regions. The Company’s chief operating decision-maker evaluates performance, makes operating decisions and allocates resources based on the Company’s revenue and adjusted EBITDA performance both on a consolidated basis and based on these three reportable segments. The Company defines adjusted EBITDA as income from operations plus depreciation, amortization, accretion, stock-based compensation expense, restructuring charges, impairment charges and acquisition costs as presented below (in thousands): Three months ended Nine months ended 2015 2014 2015 2014 Adjusted EBITDA: Americas $ 174,170 $ 160,075 $ 517,790 $ 467,763 EMEA 81,403 69,786 236,967 198,342 Asia-Pacific 65,899 54,000 183,725 153,421 Total adjusted EBITDA 321,472 283,861 938,482 819,526 Depreciation, amortization and accretion expense (133,268 ) (121,349 ) (384,068 ) (351,033 ) Stock-based compensation expense (33,969 ) (27,662 ) (98,575 ) (86,473 ) Acquisition costs (13,352 ) 281 (24,374 ) (580 ) Income from operations $ 140,883 $ 135,131 $ 431,465 $ 381,440 The Company also provides the following additional segment disclosures (in thousands): Three months ended Nine months ended 2015 2014 2015 2014 Total revenues: Americas $ 382,630 $ 347,412 $ 1,118,046 $ 1,019,701 EMEA 177,563 161,580 516,153 470,172 Asia-Pacific 126,456 111,449 361,206 315,782 $ 686,649 $ 620,441 $ 1,995,405 $ 1,805,655 Total depreciation and amortization: Americas $ 69,721 $ 66,198 $ 205,674 $ 188,990 EMEA 32,851 27,454 86,991 84,875 Asia-Pacific 29,831 26,370 88,750 75,862 $ 132,403 $ 120,022 $ 381,415 $ 349,727 Capital expenditures: Americas $ 105,250 $ 77,241 $ 340,905 (1) (2) $ 232,462 EMEA 39,816 35,177 124,299 77,842 Asia-Pacific 70,980 43,586 170,834 128,212 (3) $ 216,046 $ 156,004 $ 636,038 $ 438,516 (1) Includes the purchase price for the business acquisitions, net of cash acquired, which totaled $10,247. (2) Includes the purchase price for the San Jose land purchase, which totaled $38,282. (3) Includes the purchase of real estate totaling $16,791. The Company’s long-lived assets are located in the following geographic areas as of (in thousands): September 30, December 31, Americas $ 3,022,087 $ 2,874,562 EMEA 1,136,938 1,135,319 Asia-Pacific 1,059,570 988,389 $ 5,218,595 $ 4,998,270 Revenue information on a services basis is as follows (in thousands): Three months ended Nine months ended 2015 2014 2015 2014 Colocation $ 511,652 $ 462,466 $ 1,489,807 $ 1,349,749 Interconnection 110,568 95,648 316,887 273,643 Managed infrastructure 22,327 27,757 69,648 80,997 Rental 2,174 2,566 6,727 7,909 Recurring revenues 646,721 588,437 1,883,069 1,712,298 Non-recurring revenues 39,928 32,004 112,336 93,357 $ 686,649 $ 620,441 $ 1,995,405 $ 1,805,655 No single customer accounted for 10% or greater of the Company’s revenues for the three and nine months ended September 30, 2015 and 2014. No single customer accounted for 10% or greater of the Company’s gross accounts receivable as of September 30, 2015 and December 31, 2014. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 11. Subsequent Events On October 28, 2015, the Company declared a quarterly cash dividend of $1.69 per share, which is payable on December 16, 2015 to the Company’s common stockholders of record as of the close of business on December 9, 2015. |
Basis of Presentation and Sig17
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared by Equinix, Inc. (“Equinix” or the “Company”) and reflect all adjustments, consisting only of normal recurring adjustments, which in the opinion of management are necessary to fairly state the financial position and the results of operations for the interim periods presented. The condensed consolidated balance sheet data as of December 31, 2014 has been derived from audited consolidated financial statements as of that date. The consolidated financial statements have been prepared in accordance with the regulations of the Securities and Exchange Commission (“SEC”), but omit certain information and footnote disclosure necessary to present the statements in accordance with generally accepted accounting principles in the United States of America (“GAAP”). For further information, refer to the Consolidated Financial Statements and Notes thereto included in Equinix’s Form 10-K as filed with the SEC on March 2, 2015. Results for the interim periods are not necessarily indicative of results for the entire fiscal year. |
Consolidation | Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Equinix and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Income Taxes | Income Taxes In September 2012, the Company announced that its Board of Directors approved a plan for Equinix to pursue conversion to a real estate investment trust (“REIT”). On December 23, 2014, its Board of Directors formally approved its conversion to a REIT effective on January 1, 2015. The Company completed the implementation of the REIT conversion in 2014, and as a result, the Company has elected to be treated as a REIT for federal income tax purposes effective January 1, 2015. In May 2015, the Company received a favorable response to the private letter ruling (“PLR”) it had requested from the U.S. Internal Revenue Service (“IRS”) in connection with the Company’s conversion to a REIT for federal income tax purposes. As a result, the Company may deduct the distributions made to its shareholders from taxable income generated by the Company and its Qualified REIT Subsidiaries (“QRSs”). The Company’s dividends paid deduction generally eliminates the taxable income of the Company and its QRSs, resulting in no U.S. income tax due. However, the Taxable REIT Subsidiaries (“TRSs”) will continue to be subject to income taxes on any taxable income generated by them. In addition, the foreign operations of the Company will continue to be subject to local income taxes regardless of whether the foreign operations are operated as a QRS or a TRS. The Company provides for income taxes during interim periods based on the estimated effective tax rate for the year. The effective tax rate is subject to change in the future due to various factors such as the operating performances of the Company, tax law changes and future business acquisitions. The Company’s effective tax rates were 12.5% and 30.9% for the nine months ended September 30, 2015 and 2014, respectively. The decrease in the effective tax rate is primarily due to the reduced tax rate as a result of the REIT conversion. As a REIT, the Company is entitled to a deduction for dividends paid, resulting in a substantial reduction of federal income tax expense. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-16, Business Combinations, to simplify accounting for adjustments made to provisional amounts recognized in a business combination by eliminating the requirement to retrospectively account for those adjustments. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years, with early adoption permitted. The amendments in this ASU require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization or other income effects as a result of changes to provisional amounts, calculated as if the accounting had been completed at the acquisition date. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements. In May 2015, the FASB issued ASU 2015-07, Fair Value Measurement (“ASU 2015-07”), which permits a reporting entity, as a practical expedient, to measure the fair value of certain investments using the net asset value per share of the investment. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years with early adoption permitted. A reporting entity should apply the amendment retrospectively to all periods presented. The retrospective approach requires that an investment for which fair value is measured using the net asset value per share practical expedient be removed from the fair value hierarchy in all periods presented in an entity’s financial statements. The Company does not believe the adoption of ASU 2015-07 will have a significant impact on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (“ASU 2015-03”), to simplify the presentation of debt issuance costs. The ASU requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs is not affected by this ASU. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016, with early adoption permitted. In August 2015, the FASB issued ASU 2015-15, Interest – Imputation of Interest Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (“ASU 2015-15”), which amends ASU 2015-03 and provides guidance for the presentation of debt issuance costs associated with line-of-credit arrangements. ASU 2015-15 provides that debt issuance costs associated with line-of-credit arrangements may be presented in the balance sheet as assets. The Company adopted ASU 2015-03 and ASU 2015-15 in the three months ended September 30, 2015. As a result of the adoption of ASU 2015-03 the Company reclassified debt issuance costs of $35,455,000 at December 31, 2014 and $31,448,000 at September 30, 2015 from other assets to debt. In February 2015, the FASB issued ASU 2015-02, Consolidations (“ASU 2015-02”). This ASU requires companies to adopt a new consolidation model, specifically: (1) the ASU modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; (2) the ASU eliminates the presumption that a general partner should consolidate limited partnership; (3) the ASU affects the consolidation analysis of reporting entities involved with VIEs and (4) the ASU provides a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. This ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements. In January 2015, FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items (“ASU 2015-01”), to simplify the income statement presentation requirements by eliminating the concept of extraordinary items. ASU 2015-01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not believe the adoption of ASU 2015-01 will have a significant impact on its consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”), to provide guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016, with early adoption permitted. The Company does not believe the adoption of ASU 2014-15 will have a significant impact on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). This ASU requires companies to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which companies expect to be entitled in exchange for those goods or services. This ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. This ASU was originally effective for fiscal years and interim periods beginning after December 15, 2016. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (“ASU 2015-14”), which amends ASU 2014-09 and defers its effective date to fiscal years and interim reporting periods beginning after December 15, 2017. ASU 2015-14 permits earlier application only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements. |
Cash Flow Hedges | Cash Flow Hedges. |
Derivatives Not Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments Embedded Derivatives Economic Hedges of Embedded Derivatives. Foreign Currency Forward and Option Contracts. |
Segment Information | While the Company has a single line of business, which is the design, build-out and operation of IBX data centers, it has determined that it has three reportable segments comprised of its Americas, EMEA and Asia-Pacific geographic regions. The Company’s chief operating decision-maker evaluates performance, makes operating decisions and allocates resources based on the Company’s revenue and adjusted EBITDA performance both on a consolidated basis and based on these three reportable segments. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the periods presented (in thousands, except per share amounts): Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 Net income $ 41,132 $ 42,961 $ 177,043 $ 94,377 Net (income) loss attributable to redeemable non-controlling interests — (120 ) — 1,179 Net income attributable to Equinix, basic 41,132 42,841 177,043 95,556 Effect of assumed conversion of convertible debt: Interest expense, net of tax — 885 — 4,862 Net income attributable to Equinix, basic and diluted $ 41,132 $ 43,726 $ 177,043 $ 100,418 Weighted-average shares used to calculate basic EPS 57,082 53,137 56,894 51,369 Effect of dilutive securities: Convertible debt — 1,621 — 2,673 Employee equity awards 626 480 627 460 Weighted-average shares used to calculate diluted EPS 57,708 55,238 57,521 54,502 EPS attributable to Equinix: Basic EPS $ 0.72 $ 0.81 $ 3.11 $ 1.86 Diluted EPS $ 0.71 $ 0.79 $ 3.08 $ 1.84 |
Anti-dilutive Potential Shares of Common Stock Excluded from Computation of Earnings Per Share | The following table sets forth weighted-average outstanding potential shares of common stock that are not included in the diluted earnings per share calculation above because to do so would be anti-dilutive for the periods indicated (in thousands): Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 Shares reserved for conversion of 4.75% convertible subordinated notes 1,970 1,873 1,956 3,042 Common stock related to employee equity awards 201 156 117 176 2,171 2,029 2,073 3,218 |
Derivatives and Hedging Activ19
Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Cash Flow Hedges | As of September 30, 2015, the Company’s cash flow hedges had maturities within 1 month to 2.25 years, as follows (in thousands): Notional Fair Value (1) Accumulated other Derivative assets $ 345,806 $ 11,171 $ 23,874 Derivative liabilities 92,137 (2,310 ) (15,637 ) $ 437,943 $ 8,861 $ 8,237 (1) All derivative assets related to cash flow hedges are included in the condensed consolidated balance sheets within other current assets, other assets, other current liabilities and other liabilities. (2) Included in the condensed consolidated balance sheets within accumulated other comprehensive income (loss). (3) The Company recorded a net gain of $8,112 within accumulated other comprehensive income (loss) relating to cash flow hedges that will be reclassified to revenue and expenses as they mature in the next 12 months. As of December 31, 2014, the Company’s cash flow hedges had maturities within 1 month to 1 year as follows (in thousands): Notional Fair Value (1) Accumulated other Derivative assets $ 281,055 $ 8,404 $ 8,480 Derivative liabilities — — — $ 281,055 $ 8,404 $ 8,480 (1) All derivative assets related to cash flow hedges are included in the condensed consolidated balance sheets within other current assets, other assets, other current liabilities and other liabilities. (2) Included in the condensed consolidated balance sheets within accumulated other comprehensive income (loss). |
Schedule of Fair Value of Derivative Instruments Recognized in Consolidated Balance Sheets | The following table presents the fair value of derivative instruments recognized in the Company’s condensed consolidated balance sheets as of September 30, 2015 (in thousands): Gross Gross Net amounts Gross Net Assets: Designated as hedging instruments: Foreign currency forward contracts $ 11,171 $ — $ 11,171 $ (2,310 ) $ 8,861 Not designated as hedging instruments: Embedded derivatives 10,411 — 10,411 — 10,411 Economic hedges of embedded derivatives 17 — 17 (17 ) — Foreign currency forward and option contracts 18,942 — 18,942 (10,655 ) 8,287 29,370 — 29,370 (10,672 ) 18,698 Additional netting benefit — — — (4,223 ) (4,223 ) $ 40,541 $ — $ 40,541 $ (17,205 ) $ 23,336 Liabilities: Designated as hedging instruments: Foreign currency forward contracts $ 2,310 $ — $ 2,310 $ (2,310 ) $ — Not designated as hedging instruments: Embedded derivatives 1,649 — 1,649 — 1,649 Economic hedges of embedded derivatives 194 — 194 (17 ) 177 Foreign currency forward and option contracts 15,182 — 15,182 (10,655 ) 4,527 17,025 — 17,025 (10,672 ) 6,353 Additional netting benefit — — — (4,223 ) (4,223 ) $ 19,335 $ — $ 19,335 $ (17,205 ) $ 2,130 (1) As presented in the Company’s condensed consolidated balance sheets within other current assets, other assets, other current liabilities and other liabilities. (2) The Company enters into master netting agreements with its counterparties for transactions other than embedded derivatives to mitigate credit risk exposure to any single counterparty. Master netting agreements allow for individual derivative contracts with a single counterparty to offset in the event of default. The following table presents the fair value of derivative instruments recognized in the Company’s condensed consolidated balance sheets as of December 31, 2014 (in thousands): Gross Gross Net balance Gross Net Assets: Designated as hedging instruments: Foreign currency forward contracts $ 8,404 $ — $ 8,404 $ — $ 8,404 Not designated as hedging instruments: Embedded derivatives 9,182 — 9,182 — 9,182 Foreign currency forward and option contracts 5,153 — 5,153 (138 ) 5,015 14,335 — 14,335 (138 ) 14,197 Additional netting benefit — — — (508 ) (508 ) $ 22,739 $ — $ 22,739 $ (646 ) $ 22,093 Liabilities: Designated as hedging instruments: Foreign currency forward contracts $ — $ — $ — $ — $ — Not designated as hedging instruments: Embedded derivatives 4 — 4 — 4 Economic hedges of embedded derivatives 390 — 390 — 390 Foreign currency forward and option contracts 416 — 416 (138 ) 278 810 — 810 (138 ) 672 Additional netting benefit — — — (508 ) (508 ) $ 810 $ — $ 810 $ (646 ) $ 164 (1) As presented in the Company’s condensed consolidated balance sheets within other current assets, other assets, other current liabilities and other liabilities. (2) The Company enters into master netting agreements with its counterparties for transactions other than embedded derivatives to mitigate credit risk exposure to any single counterparty. Master netting agreements allow for individual derivative contracts with a single counterparty to offset in the event of default. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2015 were as follows (in thousands): Fair value at 2015 Fair value Level 1 Level 2 Assets (1): Money market and deposit accounts $ 8,020 $ 8,020 $ — Certificates of deposit 4,077 — 4,077 Derivative instruments (2) 40,541 — 40,541 $ 52,638 $ 8,020 $ 44,618 Liabilities: Derivative instruments (2) $ 19,335 $ — $ 19,335 $ 19,335 $ — $ 19,335 (1) Excludes cash and restricted cash. (2) Includes both foreign currency embedded derivatives and foreign currency forward contracts. Amounts are included within other current asset, other assets, others current liabilities and other liabilities in the Company’s accompanying consolidated condensed balance sheet. The Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 were as follows (in thousands): Fair value at 2014 Fair value measurement using Level 1 Level 2 Assets (1): Money market and deposit accounts $ 402,964 $ 402,964 $ — U.S. government securities 336,440 336,440 — U.S. government agency securities 192,955 — 192,955 Certificates of deposit 439 — 439 Derivative instruments (2) 22,739 — 22,739 $ 955,537 $ 739,404 $ 216,133 Liabilities: Derivative instruments (2) $ 810 $ — $ 810 $ 810 $ — $ 810 (1) Excludes cash and restricted cash (2) Includes embedded derivatives and foreign currency forward contracts. Amounts are included within other current assets, other assets, other current liabilities and other liabilities in the Company’s accompanying condensed consolidated balance sheet. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Leases [Abstract] | |
Summary of Capital Lease and Other Financing Obligations | The Company’s capital lease and other financing obligations are summarized as follows (in thousands): Capital lease Other Total 2015 (3 months remaining) $ 18,735 $ 13,638 $ 32,373 2016 68,032 55,761 123,793 2017 70,086 58,794 128,880 2018 72,151 60,231 132,382 2019 74,063 58,412 132,475 Thereafter 904,734 559,075 1,463,809 Total minimum lease payments 1,207,801 805,911 2,013,712 Plus amount representing residual property value — 408,683 408,683 Less estimated building costs — (4,580 ) (4,580 ) Less amount representing interest (573,481 ) (618,978 ) (1,192,459 ) Present value of net minimum lease payments 634,320 591,036 1,225,356 Less current portion (18,399 ) (8,376 ) (26,775 ) $ 615,921 $ 582,660 $ 1,198,581 1. Other financing obligations are primarily build-to-suit lease obligations. |
Debt Facilities (Tables)
Debt Facilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Convertible Debt | The Company’s convertible debt consisted of the following (in thousands): September 30, December 31, 4.75% convertible subordinated notes $ 157,885 $ 157,885 Less amount representing debt discount and debt issuance cost (1) (6,350 ) (12,656 ) $ 151,535 $ 145,229 (1) The Company adopted ASU 2015-03 during the three months ended September 30, 2015. As a result, debt issuance costs of $303,000 and $624,000 were reclassified from other assets to debt as of September 30, 2015 and December 31, 2014, respectively. |
Summary of Maturities of Debt Facilities | The following table sets forth maturities of the Company’s debt, including mortgage and loans payable, convertible debt and senior notes and excluding debt discounts and premium as of September 30, 2015 (in thousands): Year ending: 2015 (3 months remaining) $ 16,268 2016 212,791 2017 50,100 2018 46,565 2019 345,401 Thereafter 2,778,724 $ 3,449,849 |
Fair Value of Debt Facilities | The following table sets forth the estimated fair values of the Company’s mortgage and loans payable, senior notes and convertible debt, including current maturities, as of (in thousands): September 30, December 31, Mortgage and loans payable $ 539,187 $ 553,045 Convertible debt 160,600 162,159 Senior notes 2,731,233 2,790,023 |
Interest Charges | The following table sets forth total interest costs incurred and total interest costs capitalized for the periods presented (in thousands): Three months ended Nine months ended 2015 2014 2015 2014 Interest expense $ 76,269 $ 63,756 $ 219,556 $ 199,450 Interest capitalized 1,831 5,565 8,677 13,050 Interest charges incurred $ 78,100 $ 69,321 $ 228,233 $ 212,500 |
Loans Payable [Member] | |
Summary of Loans Payable and Senior Notes | The Company’s mortgage and loans payable consisted of the following (in thousands): September 30, December 31, Term loan $ 475,631 $ 500,000 ALOG financings (1) 32,766 56,863 Mortgage payable and other loans payable 31,505 36,608 539,902 593,471 Less amount representing debt discount and debt issuance cost (2) (2,891 ) (3,477 ) Plus amount representing mortgage premium 2,062 2,281 539,073 592,275 Less current portion (55,024 ) (59,466 ) $ 484,049 $ 532,809 (1) ALOG Data Centers do Brasil S.A. (2) The Company adopted ASU 2015-03 during the three months ended September 30, 2015. As a result, debt issuance costs of $1,594,000 and $1,877,000 were reclassified from other assets to debt as of September 30, 2015 and December 31, 2014, respectively. |
Senior Notes [Member] | |
Summary of Loans Payable and Senior Notes | The Company’s senior notes consisted of the following as of (in thousands): September 30, December 31, 5.375% Senior Notes due 2023 $ 1,000,000 $ 1,000,000 5.375% Senior Notes due 2022 750,000 750,000 4.875% Senior Notes due 2020 500,000 500,000 5.75% Senior Notes due 2025 500,000 500,000 2,750,000 2,750,000 Less amount representing debt issuance cost (1) (29,552 ) (32,954 ) $ 2,720,448 $ 2,717,046 (1) The Company adopted ASU 2015-03 during the three months ended September 30, 2015, which resulted in a reclass of debt issuance costs from other assets to debt. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss, net of tax, are as follows (in thousands): Balance as of Net Balance as of Foreign currency translation adjustment (“CTA”) gain (loss) $ (336,946 ) $ (149,546 ) $ (486,492 ) Unrealized gain (loss) on cash flow hedges 6,603 (425 ) 6,178 Unrealized gain (loss) on available-for-sale securities (99 ) 99 — Net investment hedge CTA loss — (5,963 ) (5,963 ) Defined benefit plans (2,001 ) 266 (1,735 ) $ (332,443 ) $ (155,569 ) $ (488,012 ) |
Stock-Based Compensation Expense Recognized in Company's Condensed Consolidated Statement of Operations | The following table presents, by operating expense category, the Company’s stock-based compensation expense recognized in the Company’s condensed consolidated statement of operations (in thousands): Three months ended Nine months ended 2015 2014 2015 2014 Cost of revenues $ 2,514 $ 2,145 $ 7,371 $ 6,243 Sales and marketing 9,173 7,256 27,806 22,199 General and administrative 22,282 18,261 63,398 58,031 $ 33,969 $ 27,662 $ 98,575 $ 86,473 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Adjusted EBITDA | The Company defines adjusted EBITDA as income from operations plus depreciation, amortization, accretion, stock-based compensation expense, restructuring charges, impairment charges and acquisition costs as presented below (in thousands): Three months ended Nine months ended 2015 2014 2015 2014 Adjusted EBITDA: Americas $ 174,170 $ 160,075 $ 517,790 $ 467,763 EMEA 81,403 69,786 236,967 198,342 Asia-Pacific 65,899 54,000 183,725 153,421 Total adjusted EBITDA 321,472 283,861 938,482 819,526 Depreciation, amortization and accretion expense (133,268 ) (121,349 ) (384,068 ) (351,033 ) Stock-based compensation expense (33,969 ) (27,662 ) (98,575 ) (86,473 ) Acquisition costs (13,352 ) 281 (24,374 ) (580 ) Income from operations $ 140,883 $ 135,131 $ 431,465 $ 381,440 |
Segment Disclosures | The Company also provides the following additional segment disclosures (in thousands): Three months ended Nine months ended 2015 2014 2015 2014 Total revenues: Americas $ 382,630 $ 347,412 $ 1,118,046 $ 1,019,701 EMEA 177,563 161,580 516,153 470,172 Asia-Pacific 126,456 111,449 361,206 315,782 $ 686,649 $ 620,441 $ 1,995,405 $ 1,805,655 Total depreciation and amortization: Americas $ 69,721 $ 66,198 $ 205,674 $ 188,990 EMEA 32,851 27,454 86,991 84,875 Asia-Pacific 29,831 26,370 88,750 75,862 $ 132,403 $ 120,022 $ 381,415 $ 349,727 Capital expenditures: Americas $ 105,250 $ 77,241 $ 340,905 (1) (2) $ 232,462 EMEA 39,816 35,177 124,299 77,842 Asia-Pacific 70,980 43,586 170,834 128,212 (3) $ 216,046 $ 156,004 $ 636,038 $ 438,516 (1) Includes the purchase price for the business acquisitions, net of cash acquired, which totaled $10,247. (2) Includes the purchase price for the San Jose land purchase, which totaled $38,282. (3) Includes the purchase of real estate totaling $16,791. |
Long-Lived Assets | The Company’s long-lived assets are located in the following geographic areas as of (in thousands): September 30, December 31, Americas $ 3,022,087 $ 2,874,562 EMEA 1,136,938 1,135,319 Asia-Pacific 1,059,570 988,389 $ 5,218,595 $ 4,998,270 |
Revenue Information on Services Basis | Revenue information on a services basis is as follows (in thousands): Three months ended Nine months ended 2015 2014 2015 2014 Colocation $ 511,652 $ 462,466 $ 1,489,807 $ 1,349,749 Interconnection 110,568 95,648 316,887 273,643 Managed infrastructure 22,327 27,757 69,648 80,997 Rental 2,174 2,566 6,727 7,909 Recurring revenues 646,721 588,437 1,883,069 1,712,298 Non-recurring revenues 39,928 32,004 112,336 93,357 $ 686,649 $ 620,441 $ 1,995,405 $ 1,805,655 |
Basis of Presentation and Sig25
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) - USD ($) | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Effective income tax rate, continuing operations | 12.50% | 30.90% | |
ASU 2015-03 [Member] | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Reclassified debt issuance costs from other assets to debt | $ 31,448,000 | $ 35,455,000 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 41,132 | $ 42,961 | $ 177,043 | $ 94,377 |
Net (income) loss attributable to redeemable non-controlling interests | (120) | 1,179 | ||
Net income attributable to Equinix, basic | 41,132 | 42,841 | 177,043 | 95,556 |
Effect of assumed conversion of convertible debt: | ||||
Interest expense, net of tax | 885 | 4,862 | ||
Net income attributable to Equinix, basic and diluted | $ 41,132 | $ 43,726 | $ 177,043 | $ 100,418 |
Weighted-average shares used to calculate basic EPS | 57,082 | 53,137 | 56,894 | 51,369 |
Effect of dilutive securities: | ||||
Convertible debt | 1,621 | 2,673 | ||
Employee equity awards | 626 | 480 | 627 | 460 |
Weighted-average shares used to calculate diluted EPS | 57,708 | 55,238 | 57,521 | 54,502 |
Basic EPS | $ 0.72 | $ 0.81 | $ 3.11 | $ 1.86 |
Diluted EPS | $ 0.71 | $ 0.79 | $ 3.08 | $ 1.84 |
Earnings Per Share - Anti-dilut
Earnings Per Share - Anti-dilutive Potential Shares of Common Stock Excluded from Computation of Earnings Per Share (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive potential shares of common stock excluded from computation of earnings per share, amount | 2,171 | 2,029 | 2,073 | 3,218 |
Common stock related to employee equity awards [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive potential shares of common stock excluded from computation of earnings per share, amount | 201 | 156 | 117 | 176 |
4.75% Convertible subordinated notes [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive potential shares of common stock excluded from computation of earnings per share, amount | 1,970 | 1,873 | 1,956 | 3,042 |
Earnings Per Share - Anti-dil28
Earnings Per Share - Anti-dilutive Potential Shares of Common Stock Excluded from Computation of Earnings Per Share (Parenthetical) (Detail) | Sep. 30, 2015 | Sep. 30, 2014 |
4.75% Convertible subordinated notes [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Convertible debt interest rate | 4.75% | 4.75% |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) | Sep. 08, 2015USD ($) | Sep. 08, 2015JPY (¥)¥ / shares | May. 29, 2015GBP (£) | May. 29, 2015USD ($) | Jan. 14, 2015USD ($) | Oct. 31, 2015USD ($) | Oct. 31, 2015JPY (¥) | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2015JPY (¥) | May. 29, 2015USD ($) | Dec. 31, 2014USD ($) |
Business Acquisition [Line Items] | ||||||||||||
Goodwill recorded | $ 983,530,000 | $ 983,530,000 | $ 1,002,129,000 | |||||||||
5.75% Senior Notes due 2025 [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Senior notes stated percentage | 5.75% | 5.75% | 5.75% | |||||||||
Senior notes maturity | 2,025 | |||||||||||
4.875% Senior Notes due 2020 [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Senior notes stated percentage | 4.875% | 4.875% | 4.875% | |||||||||
Senior notes maturity | 2,020 | |||||||||||
Bridge Loan [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Initial lender of bridge loan credit agreement | J.P. Morgan Chase Bank, N.A. | |||||||||||
Short-term debt | £ 875,000,000 | $ 0 | $ 0 | $ 1,340,000,000 | ||||||||
Debt instrument term | 12 months | 12 months | ||||||||||
Debt instrument extended maturity term | 7 years | 7 years | ||||||||||
Debt estimated commitment fees | £ 4,375,000 | $ 6,701,000 | ||||||||||
Debt commitment fees | 4,970,000 | $ 4,970,000 | ||||||||||
Margin base rate | 5.00% | |||||||||||
Debt instrument, variable interest rate basis | The Bridge Loan bears interest during the first three months in which the funds are advanced, at an initial annual rate of LIBOR plus 5.00%. Thereafter, the rate for each subsequent three-month period increases by 0.5% over the applicable margin in effect for the immediately preceding three-month period, subject to a cap (the “Total Cap”). Prior to February 28, 2016, the Total Cap is equal to 1.50% plus the greatest of (i) the yield on the Company’s 5.750% senior notes due 2025, (ii) the yield on the J.P. Morgan US Dollar Global High Yield Index minus 1.21% and (iii) 4.875%. On and after February 28, 2016, the Total Cap is equal to 1.75% plus the greatest of (i) the yield on the Company’s 5.750% senior notes due 2025, (ii) the yield on the J.P. Morgan US Dollar Global High Yield Index minus 1.21% and (iii) 4.875%. | |||||||||||
Short-term loan | 0 | $ 0 | ||||||||||
Bridge Loan [Member] | Bank of Tokyo-Mitsubishi UFJ, Ltd. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Short-term debt | $ 395,833,000 | $ 395,833,000 | ||||||||||
Debt instrument term | 1 year | |||||||||||
Debt instrument, variable interest rate basis | Tokyo Interbank Offered Rate | |||||||||||
Debt instrument, variable interest terms | Borrowings under the Bridge Loan will bear interest at the Tokyo Interbank Offered Rate for Japanese Yen, plus a margin of 0.4% per annum for the first ten months following the borrowing of the first tranche of the Bridge Loan, which margin increases to 1.75% per annum thereafter. | |||||||||||
Bridge Loan [Member] | Tokyo Interbank Offered Rate [Member] | Bank of Tokyo-Mitsubishi UFJ, Ltd. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Debt instrument interest rate spread | 0.40% | |||||||||||
Debt instrument increase in interest rate spread | 1.75% | |||||||||||
Bridge Loan [Member] | Maximum [Member] | Bank of Tokyo-Mitsubishi UFJ, Ltd. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Short-term debt | ¥ | ¥ 47,500,000,000 | |||||||||||
Bridge Loan [Member] | 5.75% Senior Notes due 2025 [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Senior notes stated percentage | 5.75% | 5.75% | 5.75% | |||||||||
Senior notes maturity | 2,025 | |||||||||||
Bridge Loan [Member] | 4.875% Senior Notes due 2020 [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Senior notes stated percentage | 4.875% | 4.875% | 4.875% | |||||||||
Bridge Loan [Member] | Forecast [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Drawings from short-term debt | $ 226,940,000 | ¥ 27,260,000,000 | ||||||||||
Nimbo Technologies Inc [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash consideration for acquisition | $ 10,000,000 | |||||||||||
Contingent earn-out arrangement to be paid (in years) | 2 years | |||||||||||
Goodwill recorded | $ 17,154,000 | |||||||||||
Telecity Group plc [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Total Consideration | 2,351,900,000 | $ 3,594,409,000 | ||||||||||
Restricted cash | £ 322,851,000 | $ 493,801,000 | ||||||||||
Telecity Group plc [Member] | Foreign currency forward and option contracts [Member] | Other Income (Expense) [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Loss in foreign currency option and forward contracts | $ 11,636,000 | $ 11,636,000 | ||||||||||
Bit Isle Inc [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash consideration for acquisition | $ 280,000,000 | ¥ 33,300,000,000 | ||||||||||
Offer price, per share | ¥ / shares | ¥ 922 | |||||||||||
Percentage of shares acquired | 66.67% | |||||||||||
Percentage of shares including stock options tendered | 97.00% |
Derivatives and Hedging Activ30
Derivatives and Hedging Activities - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Derivative [Line Items] | |||||
Foreign exchange gains (losses) | $ (72,677,000) | $ (144,994,000) | $ (149,546,000) | $ (106,943,000) | |
Description of foreign currency term loan of net investment | In order to mitigate the volatility in foreign currency exchange rates, the Company entered into a foreign currency term loan in April 2015 (as discussed in Note 7) and designated 100% of the term loan to hedge its net investments in its wholly-owned foreign subsidiaries that are denominated in the same foreign currencies as the term loan. | ||||
Ineffectiveness amount from net investment hedges | 0 | $ 0 | |||
Gains (losses) reclassified from accumulated other comprehensive income (loss) to revenues | 5,590,000 | 0 | 21,096,000 | ||
Costs and operating expenses [Member] | |||||
Derivative [Line Items] | |||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) to revenues | $ (4,167,000) | ||||
Not designated as hedging instruments [Member] | |||||
Derivative [Line Items] | |||||
Objectives for using derivative instruments | Embedded Derivatives. The Company is deemed to have foreign currency forward contracts embedded in certain of the Company’s customer agreements that are priced in currencies different from the functional or local currencies of the parties involved. These embedded derivatives are separated from their host contracts and carried on the Company’s balance sheet at their fair value. The majority of these embedded derivatives arise as a result of the Company’s foreign subsidiaries pricing their customer contracts in the U.S. dollar. Economic Hedges of Embedded Derivatives. The Company uses foreign currency forward contracts to manage the foreign exchange risk associated with the Company’s embedded derivatives (“economic hedges of embedded derivatives”). Foreign Currency Forward and Option Contracts. The Company also uses foreign currency forward and options contracts to manage the foreign exchange risk associated with certain foreign currency-denominated assets and liabilities. As a result of foreign currency fluctuations, the U.S. dollar equivalent values of the foreign currency-denominated assets and liabilities change. | ||||
Not designated as hedging instruments [Member] | Embedded derivatives [Member] | |||||
Derivative [Line Items] | |||||
Net gains (losses) on embedded derivatives | 0 | 2,745,000 | $ 0 | 0 | |
Not designated as hedging instruments [Member] | Economic hedges of embedded derivatives [Member] | |||||
Derivative [Line Items] | |||||
Net gains (losses) on embedded derivatives | 0 | (2,979,000) | (2,019,000) | 0 | |
Not designated as hedging instruments [Member] | Foreign currency forward and option contracts [Member] | |||||
Derivative [Line Items] | |||||
Net gain (loss) in foreign currency forward and options contracts | 12,776,000 | $ 4,073,000 | 10,315,000 | $ 6,975,000 | |
Designated as hedging instruments [Member] | |||||
Derivative [Line Items] | |||||
Foreign exchange gains (losses) | $ 4,426,000 | $ (5,963,000) | |||
Cash flow hedge instruments [Member] | |||||
Derivative [Line Items] | |||||
Maturity period of cash flow hedges derivatives | 1 month | 1 month | |||
Maturity period of cash flow hedges derivatives | 2 years 3 months | 1 year |
Derivatives and Hedging Activ31
Derivatives and Hedging Activities - Summary of Cash Flow Hedges (Detail) - Cash flow hedge instruments [Member] - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount, Derivative assets | $ 345,806,000 | $ 281,055,000 |
Notional Amount, Derivative liabilities | 92,137,000 | |
Notional Amount, Total | 437,943,000 | 281,055,000 |
Fair Value, Derivative assets | 11,171,000 | 8,404,000 |
Fair Value, Derivative liabilities | (2,310,000) | |
Fair Value, Total | 8,861,000 | 8,404,000 |
Unrealized gain (loss) on cash flow hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Derivative assets | 23,874,000 | 8,480,000 |
Fair Value, Derivative liabilities | (15,637,000) | |
Fair Value, Total | $ 8,237,000 | $ 8,480,000 |
Derivatives and Hedging Activ32
Derivatives and Hedging Activities - Summary of Cash Flow Hedges (Parenthetical) (Detail) - Cash flow hedge instruments [Member] - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Derivatives, Fair Value [Line Items] | ||
Net gain on accumulated other comprehensive income (loss) | $ 8,861,000 | $ 8,404,000 |
Unrealized gain (loss) on cash flow hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net gain on accumulated other comprehensive income (loss) | $ 8,237,000 | $ 8,480,000 |
Maturity period of cash flow hedges derivatives | 12 months | |
Maturities In Next Twelve Months [Member] | Unrealized gain (loss) on cash flow hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net gain on accumulated other comprehensive income (loss) | $ 8,112 |
Derivatives and Hedging Activ33
Derivatives and Hedging Activities - Schedule of Fair Value of Derivative Instruments Recognized in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Fair value of derivative assets, Gross Amounts | $ 40,541 | $ 22,739 |
Fair value of derivative assets, Gross amounts offset in the balance sheet | 0 | 0 |
Fair value of derivative assets, Net amounts | 40,541 | 22,739 |
Fair value of derivative assets, Gross amounts not offset in the balance sheet | (17,205) | (646) |
Fair value of derivative assets, Net | 23,336 | 22,093 |
Fair value of derivative liabilities, Gross Amounts | 19,335 | 810 |
Fair value of derivative liabilities, Gross amounts offset in the balance sheet | 0 | 0 |
Fair value of derivative liabilities, Net amounts | 19,335 | 810 |
Fair value of derivative liabilities, Gross amounts not offset in the balance sheet | (17,205) | (646) |
Fair value of derivative liabilities, Net | 2,130 | 164 |
Additional netting benefit [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets, Gross amounts offset in the balance sheet | 0 | 0 |
Fair value of derivative assets, Gross amounts not offset in the balance sheet | (4,223) | (508) |
Fair value of derivative assets, Net | (4,223) | (508) |
Fair value of derivative liabilities, Gross amounts offset in the balance sheet | 0 | 0 |
Fair value of derivative liabilities, Gross amounts not offset in the balance sheet | (4,223) | (508) |
Fair value of derivative liabilities, Net | (4,223) | (508) |
Designated as hedging instruments [Member] | Foreign currency forward contracts [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets, Gross Amounts | 11,171 | 8,404 |
Fair value of derivative assets, Gross amounts offset in the balance sheet | 0 | 0 |
Fair value of derivative assets, Net amounts | 11,171 | 8,404 |
Fair value of derivative assets, Gross amounts not offset in the balance sheet | (2,310) | |
Fair value of derivative assets, Net | 8,861 | 8,404 |
Fair value of derivative liabilities, Gross Amounts | 2,310 | |
Fair value of derivative liabilities, Gross amounts offset in the balance sheet | 0 | 0 |
Fair value of derivative liabilities, Net amounts | 2,310 | |
Fair value of derivative liabilities, Gross amounts not offset in the balance sheet | (2,310) | |
Not designated as hedging instruments [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets, Gross Amounts | 29,370 | 14,335 |
Fair value of derivative assets, Gross amounts offset in the balance sheet | 0 | 0 |
Fair value of derivative assets, Net amounts | 29,370 | 14,335 |
Fair value of derivative assets, Gross amounts not offset in the balance sheet | (10,672) | (138) |
Fair value of derivative assets, Net | 18,698 | 14,197 |
Fair value of derivative liabilities, Gross Amounts | 17,025 | 810 |
Fair value of derivative liabilities, Gross amounts offset in the balance sheet | 0 | 0 |
Fair value of derivative liabilities, Net amounts | 17,025 | 810 |
Fair value of derivative liabilities, Gross amounts not offset in the balance sheet | (10,672) | (138) |
Fair value of derivative liabilities, Net | 6,353 | 672 |
Not designated as hedging instruments [Member] | Embedded derivatives [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets, Gross Amounts | 10,411 | 9,182 |
Fair value of derivative assets, Gross amounts offset in the balance sheet | 0 | 0 |
Fair value of derivative assets, Net amounts | 10,411 | 9,182 |
Fair value of derivative assets, Net | 10,411 | 9,182 |
Fair value of derivative liabilities, Gross Amounts | 1,649 | 4 |
Fair value of derivative liabilities, Gross amounts offset in the balance sheet | 0 | 0 |
Fair value of derivative liabilities, Net amounts | 1,649 | 4 |
Fair value of derivative liabilities, Net | 1,649 | 4 |
Not designated as hedging instruments [Member] | Economic hedges of embedded derivatives [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets, Gross Amounts | 17 | |
Fair value of derivative assets, Gross amounts offset in the balance sheet | 0 | |
Fair value of derivative assets, Net amounts | 17 | |
Fair value of derivative assets, Gross amounts not offset in the balance sheet | (17) | |
Fair value of derivative liabilities, Gross Amounts | 194 | 390 |
Fair value of derivative liabilities, Gross amounts offset in the balance sheet | 0 | 0 |
Fair value of derivative liabilities, Net amounts | 194 | 390 |
Fair value of derivative liabilities, Gross amounts not offset in the balance sheet | (17) | |
Fair value of derivative liabilities, Net | 177 | 390 |
Not designated as hedging instruments [Member] | Foreign currency forward and option contracts [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets, Gross Amounts | 18,942 | 5,153 |
Fair value of derivative assets, Gross amounts offset in the balance sheet | 0 | 0 |
Fair value of derivative assets, Net amounts | 18,942 | 5,153 |
Fair value of derivative assets, Gross amounts not offset in the balance sheet | (10,655) | (138) |
Fair value of derivative assets, Net | 8,287 | 5,015 |
Fair value of derivative liabilities, Gross Amounts | 15,182 | 416 |
Fair value of derivative liabilities, Gross amounts offset in the balance sheet | 0 | 0 |
Fair value of derivative liabilities, Net amounts | 15,182 | 416 |
Fair value of derivative liabilities, Gross amounts not offset in the balance sheet | (10,655) | (138) |
Fair value of derivative liabilities, Net | $ 4,527 | $ 278 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 40,541 | $ 22,739 |
Derivative liabilities | 19,335 | 810 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 40,541 | 22,739 |
Total financial assets | 52,638 | 955,537 |
Derivative liabilities | 19,335 | 810 |
Total financial liabilities | 19,335 | 810 |
Fair Value, Measurements, Recurring [Member] | Money market and deposit accounts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 8,020 | 402,964 |
Fair Value, Measurements, Recurring [Member] | Certificates of deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 4,077 | 439 |
Fair Value, Measurements, Recurring [Member] | U.S. government securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 336,440 | |
Fair Value, Measurements, Recurring [Member] | U.S. government agency securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 192,955 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 8,020 | 739,404 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Money market and deposit accounts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 8,020 | 402,964 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | U.S. government securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 336,440 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 40,541 | 22,739 |
Total financial assets | 44,618 | 216,133 |
Derivative liabilities | 19,335 | 810 |
Total financial liabilities | 19,335 | 810 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Certificates of deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 4,077 | 439 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | U.S. government agency securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 192,955 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2015 | |
Atlanta 1 Capital Lease [Member] | |||
Operating Leased Assets [Line Items] | |||
Capital lease asset | $ 21,274,000 | ||
Capital lease liability | $ 21,274,000 | ||
Expiration date of lease | Sep. 30, 2035 | ||
Atlanta 2 Capital Lease [Member] | |||
Operating Leased Assets [Line Items] | |||
Capital lease asset | $ 25,960,000 | ||
Capital lease liability | $ 26,230,000 | ||
Expiration date of lease | Dec. 31, 2024 |
Leases - Summary of Capital Lea
Leases - Summary of Capital Lease and Other Financing Obligations (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Capital lease obligations | ||
Current portion of capital lease and other financing obligations | $ (26,775) | $ (21,362) |
Capital lease and other financing obligations, less current portion | 1,198,581 | $ 1,168,042 |
Capital lease obligations [Member] | ||
Schedule Of Capitalized Lease [Line Items] | ||
2015 (3 months remaining) | 18,735 | |
2,016 | 68,032 | |
2,017 | 70,086 | |
2,018 | 72,151 | |
2,019 | 74,063 | |
Thereafter | 904,734 | |
Total minimum lease payments | 1,207,801 | |
Less amount representing interest | (573,481) | |
Present value of net minimum lease payments | 634,320 | |
Capital lease obligations | ||
Current portion of capital lease and other financing obligations | (18,399) | |
Capital lease and other financing obligations, less current portion | 615,921 | |
Present value of net minimum lease payments | 634,320 | |
Other financing obligations [Member] | ||
Schedule Of Capitalized Lease [Line Items] | ||
2015 (3 months remaining) | 13,638 | |
2,016 | 55,761 | |
2,017 | 58,794 | |
2,018 | 60,231 | |
2,019 | 58,412 | |
Thereafter | 559,075 | |
Total minimum lease payments | 805,911 | |
Plus amount representing residual property value | 408,683 | |
Less estimated building costs | (4,580) | |
Less amount representing interest | (618,978) | |
Present value of net minimum lease payments | 591,036 | |
Capital lease obligations | ||
Current portion of capital lease and other financing obligations | (8,376) | |
Capital lease and other financing obligations, less current portion | 582,660 | |
Present value of net minimum lease payments | 591,036 | |
Capital Lease and Other Financing Obligations Total [Member] | ||
Schedule Of Capitalized Lease [Line Items] | ||
2015 (3 months remaining) | 32,373 | |
2,016 | 123,793 | |
2,017 | 128,880 | |
2,018 | 132,382 | |
2,019 | 132,475 | |
Thereafter | 1,463,809 | |
Total minimum lease payments | 2,013,712 | |
Plus amount representing residual property value | 408,683 | |
Less estimated building costs | (4,580) | |
Less amount representing interest | (1,192,459) | |
Present value of net minimum lease payments | 1,225,356 | |
Capital lease obligations | ||
Current portion of capital lease and other financing obligations | (26,775) | |
Capital lease and other financing obligations, less current portion | 1,198,581 | |
Present value of net minimum lease payments | $ 1,225,356 |
Debt Facilities - Summary of Lo
Debt Facilities - Summary of Loans Payable and Senior Notes (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Loans payable | $ 539,902 | $ 593,471 |
Less amount representing debt discount and debt issuance cost | (2,891) | (3,477) |
Plus amount representing mortgage premium | 2,062 | 2,281 |
Loans payable current and non current | 539,073 | 592,275 |
Loans payable current and non current | ||
Less current portion | (55,024) | (59,466) |
Loans payable, less current portion | 484,049 | 532,809 |
Loans payable current and non current | 539,073 | 592,275 |
U.S. term loan [Member] | ||
Debt Instrument [Line Items] | ||
Loans payable | 475,631 | 500,000 |
ALOG financings [Member] | ||
Debt Instrument [Line Items] | ||
Loans payable | 32,766 | 56,863 |
Mortgage payable and other loans payable [Member] | ||
Debt Instrument [Line Items] | ||
Loans payable | $ 31,505 | $ 36,608 |
Debt Facilities - Summary of 38
Debt Facilities - Summary of Loans Payable and Senior Notes (Parenthetical) (Detail) - ASU 2015-03 [Member] - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Reclassified debt issuance costs from other assets to debt | $ 31,448,000 | $ 35,455,000 |
Mortgage and Loans Payable [Member] | ||
Debt Instrument [Line Items] | ||
Reclassified debt issuance costs from other assets to debt | $ 1,594,000 | $ 1,877,000 |
Debt Facilities - Additional In
Debt Facilities - Additional Information 1 (Detail) | Apr. 30, 2015USD ($) | Jul. 31, 2015$ / sharesshares | Sep. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2014USD ($) | Apr. 30, 2015GBP (£) | Apr. 30, 2015USD ($) | Apr. 30, 2015CHF (SFr) | Apr. 30, 2015EUR (€) | Apr. 30, 2015JPY (¥) |
Debt Instrument [Line Items] | |||||||||
Prepayment of principal balance of outstanding term loan | $ 529,447,000 | $ 37,510,000 | |||||||
Senior credit facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 1,500,000,000 | ||||||||
Senior credit facility [Member] | Term loan facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | 500,000,000 | ||||||||
U.S. term loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | £ 92,586,000 | 490,000,000 | SFr 47,780,000 | € 184,945,000 | ¥ 11,924,000,000 | ||||
Prepayment of principal balance of outstanding term loan | $ 490,000,000 | ||||||||
Credit facility, frequency of payment | Quarterly | ||||||||
Debt instrument, repayment terms | The Company will repay the Term Loan Facility in equal quarterly installments on the last business day of each March, June, September and December, commencing on June 30, 2015, equal to the amount of 2.00% of the result of the respective Term Loan Facility on April 30, 2015 divided by 0.98. | ||||||||
Revolving credit facility [Member] | Senior credit facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | ||||||||
4.75% Convertible subordinated notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Subordinated notes converted into common stock | shares | 1,976,736 | ||||||||
Convertible debt interest rate | 4.75% | 4.75% | |||||||
Convertible debt maturity date | Jun. 15, 2016 | ||||||||
Capped call premium, total | $ 49,664,000 | ||||||||
Convertible subordinated notes, converted number of common stock | shares | 4,432,638 | ||||||||
Capped call redemption | shares | 1,240,460 | ||||||||
4.75% Convertible subordinated notes [Member] | Minimum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Conversion price per share | $ / shares | $ 84.32 | ||||||||
4.75% Convertible subordinated notes [Member] | Minimum [Member] | Capped Call [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Conversion price per share | $ / shares | $ 79.87 | ||||||||
4.75% Convertible subordinated notes [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Conversion price per share | $ / shares | $ 114.82 | ||||||||
4.75% Convertible subordinated notes [Member] | Maximum [Member] | Capped Call [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Conversion price per share | $ / shares | $ 108.68 |
Debt Facilities - Convertible D
Debt Facilities - Convertible Debt (Detail) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Less amount representing debt discount and debt issuance cost | $ (2,891,000) | $ (3,477,000) |
Convertible subordinated debt, Total | 151,535,000 | 145,229,000 |
4.75% Convertible subordinated notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, face amount | 157,885,000 | 157,885,000 |
Less amount representing debt discount and debt issuance cost | $ (6,350,000) | $ (12,656,000) |
Debt Facilities - Convertible41
Debt Facilities - Convertible Debt (Parenthetical) (Detail) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
ASU 2015-03 [Member] | |||
Debt Instrument [Line Items] | |||
Reclassified debt issuance costs from other assets to debt | $ 31,448,000 | $ 35,455,000 | |
4.75% Convertible subordinated notes [Member] | |||
Debt Instrument [Line Items] | |||
Convertible debt interest rate | 4.75% | 4.75% | |
4.75% Convertible subordinated notes [Member] | ASU 2015-03 [Member] | |||
Debt Instrument [Line Items] | |||
Reclassified debt issuance costs from other assets to debt | $ 303,000 | $ 624,000 |
Debt Facilities - Summary of Se
Debt Facilities - Summary of Senior Notes (Detail) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Senior notes | $ 2,720,448,000 | $ 2,717,046,000 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, face amount | 2,750,000,000 | 2,750,000,000 |
Less amount representing debt issuance cost | (29,552,000) | (32,954,000) |
5.375% Senior Notes due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, face amount | 1,000,000,000 | 1,000,000,000 |
5.375% Senior Notes due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, face amount | 750,000,000 | 750,000,000 |
4.875% Senior Notes due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, face amount | 500,000,000 | 500,000,000 |
5.75% Senior Notes due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, face amount | $ 500,000,000 | $ 500,000,000 |
Debt Facilities - Summary of 43
Debt Facilities - Summary of Senior Notes (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2015 | |
5.375% Senior Notes due 2023 [Member] | |
Debt Instrument [Line Items] | |
Senior notes stated percentage | 5.375% |
Senior notes maturity | 2,023 |
5.375% Senior Notes due 2022 [Member] | |
Debt Instrument [Line Items] | |
Senior notes stated percentage | 5.375% |
Senior notes maturity | 2,022 |
4.875% Senior Notes due 2020 [Member] | |
Debt Instrument [Line Items] | |
Senior notes stated percentage | 4.875% |
Senior notes maturity | 2,020 |
5.75% Senior Notes due 2025 [Member] | |
Debt Instrument [Line Items] | |
Senior notes stated percentage | 5.75% |
Senior notes maturity | 2,025 |
Debt Facilities - Summary of Ma
Debt Facilities - Summary of Maturities of Debt Facilities (Detail) $ in Thousands | Sep. 30, 2015USD ($) |
Debt Disclosure [Abstract] | |
2015 (3 months remaining) | $ 16,268 |
2,016 | 212,791 |
2,017 | 50,100 |
2,018 | 46,565 |
2,019 | 345,401 |
Thereafter | 2,778,724 |
Total long term debt | $ 3,449,849 |
Debt Facilities - Fair Value of
Debt Facilities - Fair Value of Debt Facilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
Mortgage and loans payable | $ 539,187 | $ 553,045 |
Convertible debt | 160,600 | 162,159 |
Senior notes | $ 2,731,233 | $ 2,790,023 |
Debt Facilities - Interest Char
Debt Facilities - Interest Charges (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Debt Disclosure [Abstract] | ||||
Interest expense | $ 76,269 | $ 63,756 | $ 219,556 | $ 199,450 |
Interest capitalized | 1,831 | 5,565 | 8,677 | 13,050 |
Interest charges incurred | $ 78,100 | $ 69,321 | $ 228,233 | $ 212,500 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - Sep. 30, 2015 | GBP (£) | USD ($) |
Telecity Group plc [Member] | ||
Other Commitments [Line Items] | ||
Cooperation agreement amount to secure acquisition clearances and authorization | £ 50,000,000 | $ 76,415,000 |
Capital expenditures [Member] | ||
Other Commitments [Line Items] | ||
Purchase commitments | 244,700,000 | |
Miscellaneous purchase commitments [Member] | ||
Other Commitments [Line Items] | ||
Purchase commitments | $ 395,900,000 |
Stockholders' Equity - Componen
Stockholders' Equity - Components of Accumulated Other Comprehensive Loss (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance as of December 31, 2014 | $ (332,443) |
Net Change | (155,569) |
Balance as of September 30, 2015 | (488,012) |
Foreign currency translation adjustment ("CTA") gain (loss) [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance as of December 31, 2014 | (336,946) |
Net Change | (149,546) |
Balance as of September 30, 2015 | (486,492) |
Unrealized gain (loss) on cash flow hedges [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance as of December 31, 2014 | 6,603 |
Net Change | (425) |
Balance as of September 30, 2015 | 6,178 |
Unrealized gain (loss) on available for sale securities [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance as of December 31, 2014 | (99) |
Net Change | 99 |
Net investment hedge CTA loss [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Net Change | (5,963) |
Balance as of September 30, 2015 | (5,963) |
Defined benefit plans [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance as of December 31, 2014 | (2,001) |
Net Change | 266 |
Balance as of September 30, 2015 | $ (1,735) |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Sep. 16, 2015 | Jul. 29, 2015 | Jun. 17, 2015 | May. 07, 2015 | Mar. 25, 2015 | Feb. 19, 2015 | Sep. 30, 2015 | Feb. 28, 2015 | Sep. 30, 2015 | Mar. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Distribution, payment date | Sep. 16, 2015 | Jun. 17, 2015 | Mar. 25, 2015 | |||||||
Dividends payable, date of Record | Aug. 26, 2015 | May 27, 2015 | Mar. 11, 2015 | |||||||
Cash dividend declaration per share | $ 1.69 | $ 1.69 | $ 1.69 | |||||||
Total cash dividend paid | $ 96,408,000 | $ 96,203,000 | $ 96,196,000 | |||||||
Stock, shares issued | 586,646 | |||||||||
Equity awards subject to vesting provisions, weighted-average grant date fair value | $ 222.40 | |||||||||
Equity awards subject to vesting provisions, weighted-average requisite service period, in years | 3 years 5 months 9 days | |||||||||
Installment first quarter of fiscal year [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Dividends declared date | Feb. 19, 2015 | |||||||||
Installment second quarter of fiscal year [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Dividends declared date | May 7, 2015 | |||||||||
Installment third quarter of fiscal year [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Dividends declared date | Jul. 29, 2015 | |||||||||
2015 Special Distribution [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Dividends payable | $ 627,289,000 | $ 627,289,000 | ||||||||
Special distribution, per share | $ 10.95 | $ 10.95 | ||||||||
Distribution, payment date | Nov. 10, 2015 | |||||||||
Dividends payable, date of Record | Oct. 8, 2015 | |||||||||
Total distribution payable to all stockholders | $ 125,400,000 | |||||||||
Maximum percentage of total distribution payable to all stockholders | 20.00% | |||||||||
Restricted stock units [Member] | Installment first quarter of fiscal year [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Dividends payable | $ 2,630,000 | |||||||||
Restricted stock units [Member] | Installment second quarter of fiscal year [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Dividends payable | $ 2,443,000 | $ 2,443,000 | ||||||||
Restricted stock units [Member] | Installment third quarter of fiscal year [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Dividends payable | $ 2,244,000 | $ 2,244,000 |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Compensation Expense Recognized in Company's Condensed Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 33,969 | $ 27,662 | $ 98,575 | $ 86,473 |
Cost of revenues [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 2,514 | 2,145 | 7,371 | 6,243 |
Sales and marketing [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 9,173 | 7,256 | 27,806 | 22,199 |
General and administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 22,282 | $ 18,261 | $ 63,398 | $ 58,031 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Segment | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | 3 | ||||
Customer concentration risk [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk, customer, description | No single customer accounted for 10% or greater of the Company's revenues for the three and nine months ended September 30, 2015 and 2014. No single customer accounted for 10% or greater of the Company's gross accounts receivable as of September 30, 2015 and December 31, 2014. | ||||
Revenues [Member] | Customer concentration risk [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk, customer, percentage | 10.00% | 10.00% | 10.00% | 10.00% | |
Accounts receivable [Member] | Customer concentration risk [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk, customer, percentage | 10.00% | 10.00% |
Segment Information - Schedule
Segment Information - Schedule of Adjusted EBITDA (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Total adjusted EBITDA | $ 321,472 | $ 283,861 | $ 938,482 | $ 819,526 |
Depreciation, amortization and accretion expense | (133,268) | (121,349) | (384,068) | (351,033) |
Stock-based compensation expense | (33,969) | (27,662) | (98,575) | (86,473) |
Acquisition costs | (13,352) | 281 | (24,374) | (580) |
Income from operations | 140,883 | 135,131 | 431,465 | 381,440 |
Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total adjusted EBITDA | 174,170 | 160,075 | 517,790 | 467,763 |
EMEA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total adjusted EBITDA | 81,403 | 69,786 | 236,967 | 198,342 |
Asia-Pacific [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total adjusted EBITDA | $ 65,899 | $ 54,000 | $ 183,725 | $ 153,421 |
Segment Information - Segment D
Segment Information - Segment Disclosures (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 686,649 | $ 620,441 | $ 1,995,405 | $ 1,805,655 |
Total depreciation and amortization | 132,403 | 120,022 | 381,415 | 349,727 |
Capital expenditures | 216,046 | 156,004 | 636,038 | 438,516 |
Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 382,630 | 347,412 | 1,118,046 | 1,019,701 |
Total depreciation and amortization | 69,721 | 66,198 | 205,674 | 188,990 |
Capital expenditures | 105,250 | 77,241 | 340,905 | 232,462 |
EMEA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 177,563 | 161,580 | 516,153 | 470,172 |
Total depreciation and amortization | 32,851 | 27,454 | 86,991 | 84,875 |
Capital expenditures | 39,816 | 35,177 | 124,299 | 77,842 |
Asia-Pacific [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 126,456 | 111,449 | 361,206 | 315,782 |
Total depreciation and amortization | 29,831 | 26,370 | 88,750 | 75,862 |
Capital expenditures | $ 70,980 | $ 43,586 | $ 170,834 | $ 128,212 |
Segment Information - Segment54
Segment Information - Segment Disclosures (Parenthetical) (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||
Business acquisitions, net of cash acquired | $ 10,247 | |
Purchase of real estate | 38,282 | $ 16,791 |
Americas [Member] | ||
Segment Reporting Information [Line Items] | ||
Business acquisitions, net of cash acquired | 10,247 | |
Purchase of real estate | $ 38,282 | |
Asia-Pacific [Member] | ||
Segment Reporting Information [Line Items] | ||
Purchase of real estate | $ 16,791 |
Segment Information - Long-Live
Segment Information - Long-Lived Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Company's long-lived assets | $ 5,218,595 | $ 4,998,270 |
Americas [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Company's long-lived assets | 3,022,087 | 2,874,562 |
EMEA [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Company's long-lived assets | 1,136,938 | 1,135,319 |
Asia-Pacific [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Company's long-lived assets | $ 1,059,570 | $ 988,389 |
Segment Information - Revenue I
Segment Information - Revenue Information on Services Basis (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue from External Customer [Line Items] | ||||
Revenue | $ 686,649 | $ 620,441 | $ 1,995,405 | $ 1,805,655 |
Recurring Revenues [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 646,721 | 588,437 | 1,883,069 | 1,712,298 |
Recurring Revenues [Member] | Colocation [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 511,652 | 462,466 | 1,489,807 | 1,349,749 |
Recurring Revenues [Member] | Interconnection [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 110,568 | 95,648 | 316,887 | 273,643 |
Recurring Revenues [Member] | Managed infrastructure services [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 22,327 | 27,757 | 69,648 | 80,997 |
Recurring Revenues [Member] | Rental [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 2,174 | 2,566 | 6,727 | 7,909 |
Non-recurring Revenues [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | $ 39,928 | $ 32,004 | $ 112,336 | $ 93,357 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | Oct. 28, 2015 | Jul. 29, 2015 | May. 07, 2015 | Feb. 19, 2015 |
Subsequent Event [Line Items] | ||||
Cash dividend declaration per share | $ 1.69 | $ 1.69 | $ 1.69 | |
Special distribution, payable date | Sep. 16, 2015 | Jun. 17, 2015 | Mar. 25, 2015 | |
Dividends payable, date of Record | Aug. 26, 2015 | May 27, 2015 | Mar. 11, 2015 | |
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Dividends declared date | Oct. 28, 2015 | |||
Cash dividend declaration per share | $ 1.69 | |||
Special distribution, payable date | Dec. 16, 2015 | |||
Dividends payable, date of Record | Dec. 9, 2015 |