Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2016shares | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | EQUINIX INC |
Entity Central Index Key | 1,101,239 |
Current Fiscal Year End Date | --12-31 |
Trading Symbol | EQIX |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 69,427,936 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 633,758 | $ 2,228,838 |
Short-term investments | 12,353 | 12,875 |
Accounts receivable, net | 326,440 | 291,964 |
Current portion of restricted cash | 3,420 | 479,417 |
Other current assets | 236,466 | 212,929 |
Assets held for sale | 955,904 | 33,257 |
Total current assets | 2,168,341 | 3,259,280 |
Long-term investments | 3,969 | 4,584 |
Property, plant and equipment, net | 6,888,232 | 5,606,436 |
Goodwill | 3,336,968 | 1,063,200 |
Intangible assets, net | 867,536 | 224,565 |
Other assets | 230,789 | 198,630 |
Total assets | 13,495,835 | 10,356,695 |
Current liabilities: | ||
Accounts payable and accrued expenses | 475,343 | 400,948 |
Accrued property, plant and equipment | 124,684 | 103,107 |
Current portion of capital lease and other financing obligations | 48,325 | 40,121 |
Current portion of mortgage and loans payable | 487,065 | 770,236 |
Current portion of convertible debt | 148,282 | 146,121 |
Other current liabilities | 171,925 | 192,286 |
Liabilities held for sale | 124,571 | 3,535 |
Total current liabilities | 1,580,195 | 1,656,354 |
Capital lease and other financing obligations, less current portion | 1,552,145 | 1,287,139 |
Mortgage and loans payable, less current portion | 1,139,807 | 472,769 |
Senior notes | 3,806,167 | 3,804,634 |
Other liabilities | 598,416 | 390,413 |
Total liabilities | $ 8,676,730 | $ 7,611,309 |
Commitments and contingencies (Note 10) | ||
Stockholders' equity: | ||
Common stock | $ 69 | $ 62 |
Additional paid-in capital | 6,973,460 | 4,838,444 |
Treasury stock | (6,635) | (7,373) |
Accumulated dividends | (1,591,908) | (1,468,472) |
Accumulated other comprehensive loss | (416,554) | (509,059) |
Accumulated deficit | (139,327) | (108,216) |
Total stockholders’ equity | 4,819,105 | 2,745,386 |
Total liabilities and stockholders’ equity | $ 13,495,835 | $ 10,356,695 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Revenues | $ 844,156 | $ 643,174 |
Costs and operating expenses: | ||
Cost of revenues | 427,680 | 298,313 |
Sales and marketing | 106,590 | 78,616 |
General and administrative | 165,904 | 113,640 |
Acquisition costs | 36,536 | 1,156 |
Gains on asset sales | (5,242) | 0 |
Total costs and operating expenses | 731,468 | 491,725 |
Income from continuing operations | 112,688 | 151,449 |
Interest income | 925 | 520 |
Interest expense | (100,863) | (68,791) |
Other expense | (60,710) | (514) |
Income (loss) from continuing operations before income taxes | (47,960) | 82,664 |
Income tax benefit (expense) | 10,633 | (6,212) |
Net income (loss) from continuing operations | (37,327) | 76,452 |
Net income from discontinued operations | 6,216 | 0 |
Net income (loss) | $ (31,111) | $ 76,452 |
Earnings (loss) per share (“EPS”): | ||
Basic EPS from continuing operations (in dollars per share) | $ (0.55) | $ 1.35 |
Basic EPS from discontinued operations (in dollars per share) | 0.09 | 0 |
Basic EPS (in dollars per share) | $ (0.46) | $ 1.35 |
Weighted-average shares | 68,132 | 56,661 |
Diluted EPS from continuing operations (in dollars per share) | $ (0.55) | $ 1.34 |
Diluted EPS from discontinued operations (in dollars per share) | 0.09 | 0 |
Diluted EPS (in dollars per share) | $ (0.46) | $ 1.34 |
Weighted-average shares for diluted EPS | 68,132 | 57,227 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (31,111) | $ 76,452 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustment (“CTA”) gain (loss) | 115,899 | (146,311) |
Unrealized gain (loss) on available-for-sale securities | (304) | 103 |
Unrealized gain (loss) on cash flow hedges | (6,784) | 10,556 |
Net investment hedge CTA loss | (16,312) | 0 |
Net actuarial gain on defined benefit plans | 6 | 59 |
Total other comprehensive income (loss), net of tax | 92,505 | (135,593) |
Comprehensive income (loss), net of tax | $ 61,394 | $ (59,141) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (31,111) | $ 76,452 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation | 172,382 | 115,341 |
Stock-based compensation | 34,061 | 30,613 |
Amortization of intangible assets | 28,152 | 6,295 |
Amortization of debt issuance costs and debt discounts | 5,508 | 3,774 |
Provision for allowance for doubtful accounts | 1,885 | 1,865 |
Gains on asset sales | (5,242) | 0 |
Other items | 4,605 | 3,191 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (11,312) | (30,791) |
Income taxes, net | (28,656) | (12,555) |
Accounts payable and accrued expenses | (40,217) | 29,693 |
Other assets and liabilities | (25,785) | 8,933 |
Net cash provided by operating activities | 104,270 | 232,811 |
Cash flows from investing activities: | ||
Purchases of investments | (10,875) | (18,446) |
Sales of investments | 14,294 | 6,709 |
Maturities of investments | 0 | 7,031 |
Business acquisitions, net of cash acquired | (1,601,627) | (10,247) |
Purchases of real estate | (16,408) | (38,282) |
Purchases of other property, plant and equipment | (197,700) | (150,120) |
Proceeds from sale of assets | 22,825 | 0 |
Changes in restricted cash | 466,704 | 3,521 |
Net cash used in investing activities | (1,322,787) | (199,834) |
Cash flows from financing activities: | ||
Proceeds from employee equity awards | 16,304 | 16,384 |
Payment of dividends | (124,836) | (96,619) |
Proceeds from loans payable | 701,250 | 0 |
Repayment of capital lease and other financing obligations | (33,232) | (5,296) |
Repayment of mortgage and loans payable | (936,353) | (13,361) |
Other financing activities | 499 | 98 |
Net cash used in financing activities | (376,368) | (98,794) |
Effect of foreign currency exchange rates on cash and cash equivalents | (195) | (8,391) |
Net decrease in cash and cash equivalents | (1,595,080) | (74,208) |
Cash and cash equivalents at beginning of period | 2,228,838 | 610,917 |
Cash and cash equivalents at end of period | $ 633,758 | $ 536,709 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | 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, 2015 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 February 26, 2016. 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, including the acquisitions of Telecity Group plc (“TelecityGroup”) from January 15, 2016, Bit-isle Inc. (“Bit-isle”) from November 2, 2015 and Nimbo Technologies Inc. (“Nimbo”) from January 14, 2015. All significant intercompany accounts and transactions have been eliminated in consolidation. Income Taxes The Company began operating as a real estate investment trust for federal income tax purposes ("REIT") effective January 1, 2015. In May 2015, the Company received a favorable response to a 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 performance of the Company, tax law changes and future business acquisitions. The Company’s effective tax rates were 22.2% and 7.5% for the three months ended March 31, 2016 and 2015, respectively. The increase in the effective tax rate for 2016 is primarily due to non-tax deductible costs related to the TelecityGroup acquisition. Assets Held for Sale and Discontinued Operations Assets and liabilities to be disposed of that meet all of the criteria to be classified as held for sale as set forth in the accounting standard for impairment or disposal of long-lived assets are reported at the lower of their carrying amounts or fair values less costs to sell. Assets are not depreciated or amortized while they are classified as held for sale. A component of a reporting entity or a group of components of a reporting entity that are disposed or meet the criteria to be classified as held for sale should be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. The accounting guidance requires a business activity that, on acquisition, meets the criteria to be classified as held for sale be reported as a discontinued operation. Accordingly, the results of operations for the TelecityGroup data centers that will be divested have been reported as net income from discontinued operations, net of tax, from January 15, 2016, the date of the acquisition, through March 31, 2016 in the Company's condensed consolidated statement of operations. For further information on the Company’s assets held for sale and discontinued operations, see Notes 4 and 5. Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). This ASU simplifies several areas of the accounting for share-based payment award transactions, including ( a ) income tax consequences; ( b ) classification of awards as either equity or liabilities; and ( c ) classification on the statement of cash flows. This ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods, 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 March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815), Contingent Put and Call Options in Debt Instruments ("ASU 2016-06"). This ASU clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in this ASU is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. This guidance should be applied on a modified retrospective basis to existing debt instruments as of the beginning of the fiscal year in which the amendments are effective, and is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815), Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships ("ASU 2016-05"). This ASU clarifies that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument under Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. This ASU may be applied prospectively or using a modified retrospective approach, and is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ("ASU 2016-02"). Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. ASU 2016-02 is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. While the Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements, the Company believes this standard will have a significant impact on its consolidated financial statements due, in part, to the substantial amount of operating leases it has. In January 2016, the FASB issued ASU 2016-01, Financial Instruments- Overall (Subtopic 825-10) ("ASU 2016-01"), which requires all equity investments to be measured at fair value with changes in the fair value recognized through net income other than those accounted for under equity method of accounting or those that result in consolidation of the investees). The ASU also requires that an entity present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, the ASU eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities and the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. ASU 2016-01 is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, Business Combinations ("ASU 2015-16"), 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 adopted ASU 2015-16 in the three months ended March 31, 2016. The adoption of ASU 2015-16 did not have a significant impact on the Company's 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 adopted ASU 2015-07 in the three months ended March 31, 2016. The adoption of ASU 2015-07 did not have a significant impact on the Company's consolidated financial statements. 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 a 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 adopted ASU 2015-02 in the three months ended March 31, 2016. The adoption of ASU 2015-02 did not have a significant impact on the Company's consolidated financial statements. In January 2015, the 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 adopted ASU 2015-01 in the three months ended March 31, 2016. The adoption of ASU 2015-01 did not have a significant impact on the Company's 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. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers, which clarifies the implementation guidance of principal-versus-agent considerations. The Company is currently evaluating the impact that the adoption of this standard and its amendments will have on its consolidated financial statements. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments clarify the following two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The ASU 2016-10 is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein (i.e., January 1, 2018, for a calendar year entity). Early application for public entities is permitted 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 | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 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 2016 2015 Net income (loss): Net income (loss) from continuing operations $ (37,327 ) $ 76,452 Net income from discontinued operations 6,216 — Net income (loss) $ (31,111 ) $ 76,452 Weighted-average shares used to calculate basic EPS 68,132 56,661 Effect of dilutive securities: Employee equity awards — 566 Weighted-average shares used to calculate diluted EPS 68,132 57,227 Basic EPS: Continuing operations $ (0.55 ) $ 1.35 Discontinued operations 0.09 — Basic EPS $ (0.46 ) $ 1.35 Diluted EPS: Continuing operations $ (0.55 ) $ 1.34 Discontinued operations 0.09 — Diluted EPS $ (0.46 ) $ 1.34 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 2016 2015 Shares reserved for conversion of 4.75% convertible subordinated notes 1,969 1,942 Common stock related to employee equity awards 1,583 211 3,552 2,153 |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions TelecityGroup Acquisition On January 15, 2016, the Company completed the acquisition of the entire issued and to be issued share capital of Telecity Group plc (“TelecityGroup”). TelecityGroup operates data center facilities in cities across Europe. The acquisition of TelecityGroup enhances the Company's existing data center portfolio by adding new IBX metro markets in Europe including Dublin, Helsinki, Istanbul, Manchester, Milan, Sofia, Stockholm and Warsaw. As a result of the transaction, TelecityGroup has become a wholly-owned subsidiary of Equinix. Under the terms of the acquisition, the Company acquired all outstanding shares of TelecityGroup and all vested equity awards of TelecityGroup at 572.5 pence in cash and 0.0336 new shares of Equinix common stock for a total purchase consideration of approximately £2,624,500,000 or approximately $3,743,587,000 . In addition, the Company assumed $1,299,000 of vested TelecityGroup's employee equity awards as part of consideration transferred. The Company incurred acquisition costs of approximately $36,185,000 during period ended March 31, 2016 related to the TelecityGroup acquisition. In connection with the TelecityGroup acquisition, the Company placed £322,851,000 or approximately $475,689,000 into a restricted cash account, which was included in the current portion of restricted cash in the condensed consolidated balance sheet as of December 31, 2015. The cash was released upon completion of the acquisition. Also, in connection with TelecityGroup acquisition, 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 for a principal amount of £875,000,000 or approximately $1,289,000,000 at the exchange rate in effect on December 31, 2015 (the “Bridge Loan”). The Company had not made any borrowings under the Bridge Loan and the Bridge Loan was terminated on January 8, 2016. The Company has initially designated the legal entities acquired in the TelecityGroup acquisition as TRSs. Purchase Price Allocation Under the acquisition method of accounting, the assets acquired and liabilities assumed in a business combination shall be measured at fair value at the date of the acquisition. As of the date of this quarterly report, the Company has not completed the detailed valuation analysis to derive the fair value of the following items including, but not limited to, deferred revenues; property plant and equipment; accounting for lease contracts; asset retirement obligations; favorable leasehold interests; accruals and taxes. Therefore, the allocation of the purchase price to acquired assets and liabilities is based on provisional estimates and is subject to continuing management analysis, with assistance of third party valuation advisers. As of the acquisition date, the preliminary allocation of the purchase price is as follows (in thousands): Cash and cash equivalents $ 73,368 Accounts receivable 20,022 Other current assets 39,929 Property, plant and equipment 1,249,374 Goodwill 2,745,913 Intangible assets 861,817 Deferred tax assets 568 Other assets 4,123 Total assets acquired 4,995,114 Accounts payable and accrued expenses (163,490 ) Accrued property, plant and equipment (3,634 ) Capital lease and other financing obligations (263,894 ) Mortgage and loans payable (592,304 ) Other current liabilities (33,730 ) Deferred tax liabilities (156,667 ) Other liabilities (36,509 ) Net assets acquired $ 3,744,886 The preliminary purchase price allocation above, as of the acquisition date, includes acquired assets and liabilities that have been classified by the Company as held for sale (Note 4). The assets and liabilities held for sale also includes Company's London 2 data center in London, UK ("LD2"). The following table presents certain information on the acquired intangible assets (dollars in thousands): Intangible assets Fair value Estimated useful lives (years) Weighted-average estimated useful lives (years) Customer relationships $ 764,550 13.5 13.5 Trade names 72,033 1.5 1.5 Favorable leases 25,234 2.4 - 33.0 13.6 The fair value of customer relationships was estimated by applying an income approach. The fair value was determined by calculating the present value of estimated future operating cash flows generated from existing customers less costs to realize the revenue. The Company applied a weighted-average discount rate of approximately 8.5% , which reflected the nature of the assets as it relates to the estimated future operating cash flows. Other significant assumptions used to estimate the fair value of the customer relationships include projected revenue growth, customer attrition rates, sales and marketing expenses and operating margins. The fair value of the TelecityGroup trade name was estimated using the relief of royalty approach. The Company applied a relief of royalty rate of 2.0% and a weighted-average discount rate of approximately 9.0% . The other acquired identifiable intangible assets were estimated by applying a relief of royalty or cost approach as appropriate. The fair value measurements were based on significant inputs that are not observable in the market and thus represent Level 3 measurements as defined in the accounting standard for fair value measurements. The fair value of the property, plant and equipment was estimated by applying the income approach or cost approach. The income approach is used to estimate fair value based on the income stream, such as cash flows or earnings that an asset can be expected to generate its useful live. There are two primary methods of applying the income approach to determine the fair value assets: the discounted cash flow method and the direct capitalization method. The key assumptions include the estimated earnings, discount rate and direct capitalization rate. The cost approach is to use the replacement or reproduction cost as an indicator of fair value. The premise of the cost approach is that a market participant would pay no more for an asset than the amount that the asset could be replaced or reproduced. The key assumptions of cost approach include replacement cost new, physical deterioration, functional and economic obsolescence, economic useful life, remaining useful life, age and effective age. The Company determined the fair value of the loans payable assumed in the TelecityGroup acquisition by estimating TelecityGroup’s debt rating and reviewed market data with a similar debt rating and other characteristics of the debt, including the maturity date and security type. On January 15, 2016, the Company prepaid and terminated these loans payable. In conjunction with the repayment of the loans payable, the Company incurred an insignificant amount of pre-payment penalties and interest rate swap termination costs, which were recorded as interest expense in the condensed consolidated statement of operations. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired. The goodwill is attributable to the workforce of the acquired business and the significant synergies expected to arise after the acquisition. The goodwill is not expected to be deductible for local tax purposes. Goodwill will not be amortized and will be tested for impairment at least annually. Goodwill recorded as a result of the TelecityGroup acquisition, except for the goodwill associated with asset held for sale, is attributable to the Company’s EMEA region. For the three months ended March 31, 2016, the Company's results of continuing operations include TelecityGroup revenues of $84,439,000 and net loss from continuing operations of $2,821,000 for the period January 15, 2016 through March 31, 2016. Bit-isle Acquisition On November 2, 2015, the Company, acting through its Japanese subsidiary, completed a cash tender offer for approximately 97% of the equity instruments, including stock options, of Tokyo-based Bit-isle. The Company acquired the remaining outstanding equity instruments of Bit-isle in December 2015. The offer price was JPY 922 per share, in an all cash transaction totaling approximately $275,367,000 . 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 loan facility (the “Bridge Term Loan”) in the amount of up to ¥47,500,000,000 , or approximately $422,275,000 in U.S. dollars at the exchange rate in effect on March 31, 2016. Proceeds from the Bridge Term Loan were 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. For further information on the Bridge Term Loan, see Note 9 below. The Company included Bit-isle’s results of operations from November 2, 2015 and the estimated fair value of assets acquired and liabilities assumed in its consolidated balance sheets beginning November 2, 2015. The Company has initially designated the legal entities acquired in the Bit-isle acquisition as TRSs. Purchase Price Allocation Under the acquisition method of accounting, the total purchase price was allocated to Bit-isle’s net tangible and intangible assets based upon their fair value as of the Bit-isle acquisition date. Under the accounting guidance, the Company can adjust the fair value of acquired assets and liabilities assumed in the measurement period, as it obtains new information regarding the facts and circumstances that existed at the acquisition date. Based upon the purchase price and the valuation of Bit-isle, the purchase price allocation was as follows (in thousands): Cash and cash equivalent $ 33,198 Accounts receivable 7,359 Other current assets 51,038 Long-term investments 3,806 Property, plant and equipment 308,985 Goodwill 95,444 Intangible assets 111,374 Other assets 22,981 Total assets acquired 634,185 Accounts payable and accrued expenses (15,028 ) Accrued property, plant and equipment (465 ) Capital lease and other financing obligations (108,833 ) Mortgage and loans payable (190,227 ) Other current liabilities (8,689 ) Deferred tax liabilities (32,192 ) Other liabilities (3,384 ) Net assets acquired $ 275,367 The following table presents certain information on the acquired identifiable intangible assets (dollars in thousands): Intangible assets Fair value Estimated useful lives (years) Weighted-average estimated useful lives (years) Customer relationships $ 105,434 13 13 Trade name 3,455 2 2 Favorable solar contracts 2,410 18 18 Other intangible assets 75 0.25 0.25 The fair value of customer relationships was estimated by applying an income approach. The fair value was determined by calculating the present value of estimated future operating cash flows generated from existing customers less costs to realize the revenue. The Company applied a weighted-average discount rate of approximately 11.0% , which reflected the nature of the assets as it relates to the estimated future operating cash flows. Other significant assumptions used to estimate the fair value of the customer relationships include projected revenue growth, customer attrition rates, sales and marketing expenses and operating margins. The fair value of the Bit-isle trade name was estimated using the relief of royalty approach. The Company applied a relief of royalty rate of 2.0% and a weighted-average discount rate of approximately 12.0% . The other acquired identifiable intangible assets were estimated by applying an income or cost approach as appropriate. The fair value measurements were based on significant inputs that are not observable in the market and thus represent Level 3 measurements as defined in the accounting standard for fair value measurements. The fair value of the property, plant and equipment was estimated by applying the income approach or cost approach. The income approach is used to estimate fair value based on the income stream, such as cash flows or earnings that an asset can be expected to generate its useful live. There are two primary methods of applying the income approach to determine the fair value assets: the discounted cash flow method and the direct capitalization method. The key assumptions include the estimated earnings, discount rate and direct capitalization rate. The cost approach is to use the replacement or reproduction cost as an indicator of fair value. The premise of the cost approach is that a market participant would pay no more for an asset than the amount that the asset could be replaced or reproduced. The key assumptions of cost approach include replacement cost new, physical deterioration, functional and economic obsolescence, economic useful life, remaining useful life, age and effective age. The Company determined the fair value of the loans payable assumed in the Bit-isle Acquisition by estimating Bit-isle’s debt rating and reviewed market data with a similar debt rating and other characteristics of the debt, including the maturity date and security type. During the year ended December 31, 2015, the Company prepaid and terminated the majority of these loans payable. In conjunction with the repayment of the loans payable, the Company incurred an insignificant amount of pre-payment penalties and interest rate swap termination costs, which were recorded as interest expense in the consolidated statement of operations for the year ended December 31, 2015. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired. The goodwill is attributable to the workforce of the acquired business and the significant synergies expected to arise after the acquisition. The goodwill is not expected to be deductible for local tax purposes. Goodwill will not be amortized and will be tested for impairment at least annually. Goodwill recorded as a result of the Bit-isle acquisition is attributable to the Company’s Asia-Pacific region. For the three months ended March 31, 2016, the Company's results of continuing operations include Bit-isle revenues of $34,204,000 and net loss of $4,213,000 . 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 $17,192,000 , 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. Unaudited Pro Forma Combined Consolidated Financial Information The following unaudited pro forma combined consolidated financial information has been prepared by the Company using the acquisition method of accounting to give effect to the TelecityGroup and Bit-isle acquisitions as though the acquisitions occurred on January 1, 2015. The Company completed the TelecityGroup acquisition on January 15, 2016. The operating results of TelecityGroup for the period January 15, 2016 through March 31, 2016 were included in the condensed consolidated statement of operations for the period ended March 31, 2016. The pro forma effect for the period ended March 31, 2016 was insignificant. The unaudited pro forma combined consolidated financial information reflects certain adjustments, such as additional depreciation, amortization and interest expense on assets and liabilities acquired. The unaudited pro forma combined consolidated financial information is presented for illustrative purposes only and is not necessarily indicative of the results of operations that would have actually been reported had the acquisitions occurred on the above dates, nor is it necessarily indicative of the future results of operations of the combined company. The following table sets forth the unaudited pro forma consolidated combined results of operations for the three months ended March 31, 2015 (in thousands): Three months ended March 31, 2015 Revenues $ 778,536 Net income from continuing operations 50,960 Basic EPS 0.80 Diluted EPS 0.80 |
Assets Held for Sale
Assets Held for Sale | 3 Months Ended |
Mar. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale | Assets Held for Sale In order to obtain the approval of the European Commission for the acquisition of TelecityGroup, the Company and TelecityGroup have agreed to divest certain data centers, including the Company’s LD2 and certain data centers of TelecityGroup in the United Kingdom, Netherlands and Germany. There is no definitive agreement with any buyer or buyers and any such agreement will be subject to the approval of the European Commission. There can be no assurance as to the timing or amount of proceeds to be received in connection with the sale of all or any part of data centers to be divested in connection with the TelecityGroup acquisition. The assets and liabilities of LD2, which are included within the EMEA operating segment, were classified as held for sale in the fourth quarter of 2015 and, therefore, the corresponding depreciation and amortization expense was ceased at that time. This anticipated divestiture is not presented as discontinued operations in the consolidated statements of operations, because it does not represent a strategic shift in the Company's business, as the Company will continue operating similar businesses after the acquisition. During the three months ended March 31, 2016 and 2015, LD2 had revenue of $3,166,000 and $4,682,000 , respectively, and net income recognized during these periods was insignificant. During the fourth quarter of 2015, the Company entered into an agreement to sell a parcel of land in San Jose, California and reported the San Jose land parcel as asset held for sale in the accompanying consolidated balance sheet as of December 31, 2015. The sale was completed in February 2016. The acquisition of TelecityGroup closed on January 15, 2016. Accordingly, the assets and liabilities of the TelecityGroup data centers that will be divested were included in assets and liabilities held for sale in the condensed consolidated balance sheet as of March 31, 2016. The results of operations for the TelecityGroup data centers that will be divested were classified as discontinued operations from January 15, 2016, the date the acquisition closed, through March 31, 2016. When an asset is classified as held for sale, the asset's book value is evaluated and adjusted to the lower of its carrying amount or fair value less cost to sell. The determination of fair value for assets is dependent upon, among other factors, the potential sales transaction, composition of assets in the disposal group, the comparability of the disposal group to market transactions and negotiations with third party purchasers, etc. Such factors impact the range of potential fair values and the selection of the best estimates. As of the date of this quarterly report, the fair value of assets acquired as a result of the acquisition of TelecityGroup has not been finalized yet. The assets held for sale is based on the estimated selling price less the estimated cost to sell the assets. As of March 31, 2016 and December 31, 2015, the Company determined that assets held for sale had not been impaired. The following table summarizes assets and liabilities that were classified in assets and liabilities held for sale as of March 31, 2016 and December 31, 2015 (in thousands): March 31, December 31, Accounts receivable $ 9,011 $ 2,222 Other current assets 3,178 408 Property, plant and equipment 216,364 23,533 Goodwill 518,766 5,000 Intangible assets 206,644 784 Other assets 1,941 1,310 Total assets held for sale 955,904 $ 33,257 Accounts payable, accrued expenses and estimated costs to sell $ (56,367 ) $ (654 ) Accrued property, plant and equipment — (816 ) Current portion of capital lease and other financing obligation (93 ) — Other current liabilities (4,048 ) (435 ) Capital lease and other financing obligations, less current portion (56,896 ) — Other liabilities (7,167 ) (1,630 ) Total liabilities held for sale $ (124,571 ) $ (3,535 ) Discontinued Operations In order to obtain the approval of the European Commission for the acquisition of TelecityGroup, the Company and TelecityGroup have agreed to divest certain data centers, including the Company’s LD2 and certain data centers of TelecityGroup in the United Kingdom, Netherlands and Germany. Accounting guidance requires a business activity that, on acquisition, meets the criteria to be classified as held for sale be reported as a discontinued operation. Accordingly, the results of operations for the TelecityGroup data centers that will be divested have been reported as net income from discontinued operations, net of tax, from January 15, 2016, the date of the acquisition, through March 31, 2016 in the Company's condensed consolidated statement of operations. The following table presents the financial results of the discontinued operations: Three months ended Revenues $ 20,581 Costs and operating expenses: Cost of revenues 11,610 Sales and marketing 217 General and administrative 383 Total costs and operating expenses 12,210 Income from operations of discontinued operations 8,371 Interest and other, net (469 ) Income from discontinued operations before income taxes 7,902 Income tax expense (1,686 ) Income from discontinued operations, net of income taxes $ 6,216 Net cash used in operating activities for discontinued operations was $11,769,000 and net cash used in investing activities for discontinued operations was $23,428,000 for the period ended March 31, 2016. No gain or loss on the disposition of the assets and liabilities of these data centers has been recognized in the condensed consolidated financial statements. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Assets Held for Sale In order to obtain the approval of the European Commission for the acquisition of TelecityGroup, the Company and TelecityGroup have agreed to divest certain data centers, including the Company’s LD2 and certain data centers of TelecityGroup in the United Kingdom, Netherlands and Germany. There is no definitive agreement with any buyer or buyers and any such agreement will be subject to the approval of the European Commission. There can be no assurance as to the timing or amount of proceeds to be received in connection with the sale of all or any part of data centers to be divested in connection with the TelecityGroup acquisition. The assets and liabilities of LD2, which are included within the EMEA operating segment, were classified as held for sale in the fourth quarter of 2015 and, therefore, the corresponding depreciation and amortization expense was ceased at that time. This anticipated divestiture is not presented as discontinued operations in the consolidated statements of operations, because it does not represent a strategic shift in the Company's business, as the Company will continue operating similar businesses after the acquisition. During the three months ended March 31, 2016 and 2015, LD2 had revenue of $3,166,000 and $4,682,000 , respectively, and net income recognized during these periods was insignificant. During the fourth quarter of 2015, the Company entered into an agreement to sell a parcel of land in San Jose, California and reported the San Jose land parcel as asset held for sale in the accompanying consolidated balance sheet as of December 31, 2015. The sale was completed in February 2016. The acquisition of TelecityGroup closed on January 15, 2016. Accordingly, the assets and liabilities of the TelecityGroup data centers that will be divested were included in assets and liabilities held for sale in the condensed consolidated balance sheet as of March 31, 2016. The results of operations for the TelecityGroup data centers that will be divested were classified as discontinued operations from January 15, 2016, the date the acquisition closed, through March 31, 2016. When an asset is classified as held for sale, the asset's book value is evaluated and adjusted to the lower of its carrying amount or fair value less cost to sell. The determination of fair value for assets is dependent upon, among other factors, the potential sales transaction, composition of assets in the disposal group, the comparability of the disposal group to market transactions and negotiations with third party purchasers, etc. Such factors impact the range of potential fair values and the selection of the best estimates. As of the date of this quarterly report, the fair value of assets acquired as a result of the acquisition of TelecityGroup has not been finalized yet. The assets held for sale is based on the estimated selling price less the estimated cost to sell the assets. As of March 31, 2016 and December 31, 2015, the Company determined that assets held for sale had not been impaired. The following table summarizes assets and liabilities that were classified in assets and liabilities held for sale as of March 31, 2016 and December 31, 2015 (in thousands): March 31, December 31, Accounts receivable $ 9,011 $ 2,222 Other current assets 3,178 408 Property, plant and equipment 216,364 23,533 Goodwill 518,766 5,000 Intangible assets 206,644 784 Other assets 1,941 1,310 Total assets held for sale 955,904 $ 33,257 Accounts payable, accrued expenses and estimated costs to sell $ (56,367 ) $ (654 ) Accrued property, plant and equipment — (816 ) Current portion of capital lease and other financing obligation (93 ) — Other current liabilities (4,048 ) (435 ) Capital lease and other financing obligations, less current portion (56,896 ) — Other liabilities (7,167 ) (1,630 ) Total liabilities held for sale $ (124,571 ) $ (3,535 ) Discontinued Operations In order to obtain the approval of the European Commission for the acquisition of TelecityGroup, the Company and TelecityGroup have agreed to divest certain data centers, including the Company’s LD2 and certain data centers of TelecityGroup in the United Kingdom, Netherlands and Germany. Accounting guidance requires a business activity that, on acquisition, meets the criteria to be classified as held for sale be reported as a discontinued operation. Accordingly, the results of operations for the TelecityGroup data centers that will be divested have been reported as net income from discontinued operations, net of tax, from January 15, 2016, the date of the acquisition, through March 31, 2016 in the Company's condensed consolidated statement of operations. The following table presents the financial results of the discontinued operations: Three months ended Revenues $ 20,581 Costs and operating expenses: Cost of revenues 11,610 Sales and marketing 217 General and administrative 383 Total costs and operating expenses 12,210 Income from operations of discontinued operations 8,371 Interest and other, net (469 ) Income from discontinued operations before income taxes 7,902 Income tax expense (1,686 ) Income from discontinued operations, net of income taxes $ 6,216 Net cash used in operating activities for discontinued operations was $11,769,000 and net cash used in investing activities for discontinued operations was $23,428,000 for the period ended March 31, 2016. No gain or loss on the disposition of the assets and liabilities of these data centers has been recognized in the condensed consolidated financial statements. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities Derivatives Designated as Hedging Instruments Net Investment Hedges. The Company is exposed to the impact of foreign exchange rate fluctuations in investments in its wholly-owned foreign subsidiaries that are denominated in currencies other than the U.S. dollar. In order to mitigate the volatility in foreign currency exchange rates, the Company has entered into various foreign currency loans which are designated as hedges against the Company's net investment in foreign subsidiaries. In April 2015, the Company entered into a foreign currency term loan ("Term Loan A") and designated 100% of the Term Loan A to hedge its net investments in its wholly-owned foreign subsidiaries that are denominated in the same foreign currencies as the term loan. In December 2015, the Company terminated hedging its net investment in subsidiaries that are denominated in Swiss Francs. In January 2016, the Company borrowed the full amount of the $250,000,000 and £300,000,000 seven year term loan commitments made available to it under the second amendment to the Company's Senior Credit Facility ("Term Loan B"). The Company designated the portion of Term Loan B that is denominated in the British pound to hedge the net investments in its wholly-owned foreign subsidiaries. In March 2016, the Company used foreign exchange forward contracts to hedge against the effect of foreign exchange rate fluctuations on a portion of its net investment in the EMEA operations. The total principal amount of foreign currency loans outstanding at March 31, 2016 and December 31, 2015, which were designated as net investment hedges, was $844,278,000 and $411,881,000 , respectively. For a net investment hedge, all changes in the fair value of the hedging instrument designated as a net investment hedge, except the ineffective portion, are recorded as a component of other comprehensive income in the condensed consolidated balance sheet. The Company recorded net foreign exchange loss of $16,312,000 in other comprehensive income and loss for the three months ended March 31, 2016 . The Company recorded no ineffectiveness from its net investment hedges for the three months ended March 31, 2016 . Cash Flow Hedges. The Company hedges its exposure to foreign currency exchange rate fluctuations for forecasted revenues and expenses in its EMEA region in order to help manage the Company’s exposure to foreign currency exchange rate fluctuations between the U.S. dollar and the British Pound, Euro and Swiss Franc. The foreign currency forward and option contracts that the Company uses to hedge this exposure are designated as cash flow hedges under the accounting standard for derivatives and hedging. Effective January 1, 2015, the Company entered into intercompany 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. Assets and liabilities resulting from intercompany derivatives have been eliminated in consolidation. As of March 31, 2016 , the Company’s cash flow hedges had maturities dates ranging from April 2016 to December 2017 as follows (in thousands): Notional Amount Fair Value (1) Accumulated other comprehensive income (loss) (2) (3) Derivative assets $ 282,657 $ 11,965 $ 27,270 Derivative liabilities 236,860 (6,762 ) (21,445 ) $ 519,517 $ 5,203 $ 5,825 (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 $ 5,951 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, 2015 , the Company’s cash flow hedges had maturities dates ranging from January 2016 to December 2017 as follows (in thousands): Notional Amount Fair Value (1) Accumulated other comprehensive income (loss) (2)(3) Derivative assets $ 367,330 $ 16,027 $ 34,578 Derivative liabilities 47,447 (813 ) (19,709 ) $ 414,777 $ 15,214 $ 14,869 (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 $12,940 within accumulated other comprehensive income (loss) relating to cash flow hedges that will be reclassified to revenue and expense as they mature over the next 12 months. During the three months ended March 31, 2016 and 2015 , the ineffective and excluded portions of cash flow hedges recognized in other income (expense) were not significant. During the three months ended March 31, 2016 , the amount of net gains reclassified from accumulated other comprehensive income (loss) to revenue was $6,446,000 and the amount of net losses reclassified from accumulated other comprehensive income (loss) to operating expenses was $3,831,000 . During the three months ended March 31, 2015 , the amount of net gains reclassified from accumulated other comprehensive income (loss) to revenue was $8,078,000 and the amount of net losses reclassified from accumulated other comprehensive income (loss) to operating expenses were not significant. Derivatives Not Designated as Hedging 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. Gains and losses on these embedded derivatives are included within revenues in the Company’s condensed consolidated statements of operations. During the three months ended March 31, 2016, the loss associated with these embedded derivatives were $6,559,000 and during the three months ended March 31,2015, the gains (losses) associated with these embedded derivatives were insignificant. Economic Hedges of Embedded Derivatives. The Company uses foreign currency forward contracts to manage the foreign exchange risk associated with the Company’s customer agreements that are priced in currencies different from the functional or local currencies of the parties involved (“economic hedges of embedded derivatives”). Foreign currency forward contracts represent agreements to exchange the currency of one country for the currency of another country at an agreed-upon price on an agreed-upon settlement date. Gains and losses on these contracts are included in revenues along with gains and losses of the related embedded derivatives. The Company entered into various economic hedges of embedded derivatives during the three months ended March 31, 2016 and 2015 . During the three months ended March 31, 2016, the gains associated with these contracts were $3,690,000 and during the three months ended March 31, 2015, the gains (losses) from these contracts were insignificant. Foreign Currency Forward and Option Contracts. The Company also uses foreign currency forward and option 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 its foreign currency-denominated assets and liabilities change. Gains and losses on these contracts are included in other income (expense), net, along with foreign currency gains and losses of the related foreign currency-denominated assets and liabilities associated with these foreign currency forward and contracts. The Company entered into various foreign currency forward and option contracts during the three months ended March 31, 2016 and 2015. During the three months ended March 31, 2016 and 2015 , the company recognized a net loss of $7,593,000 and a net gain of $10,257,000 , respectively, associated with these 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 March 31, 2016 (in thousands): Gross Amounts Gross amounts offset in the balance sheet Net amounts (1) Gross amounts not offset in the balance sheet (2) Net Assets: Designated as hedging instruments: Cash flow hedges Foreign currency forward contracts $ 11,965 $ — $ 11,965 $ (4,984 ) $ 6,981 Net Investment Hedges Foreign currency forward contracts — — — — — 11,965 — 11,965 (4,984 ) 6,981 Not designated as hedging instruments: Embedded derivatives 5,871 — 5,871 — 5,871 Economic hedges of embedded derivatives 2,035 — 2,035 (4 ) 2,031 Foreign currency forward and option contracts 3,139 — 3,139 (50 ) 3,089 11,045 — 11,045 (54 ) 10,991 Additional netting benefit — — — (4,850 ) (4,850 ) $ 23,010 $ — $ 23,010 $ (9,888 ) $ 13,122 Liabilities: Designated as hedging instruments Cash flow hedges Foreign currency forward contracts $ 6,762 $ — $ 6,762 $ (4,984 ) $ 1,778 Net Investment Hedges Foreign currency forward contracts 3,563 — 3,563 — 3,563 10,325 — 10,325 (4,984 ) 5,341 Not designated as hedging instruments: Embedded derivatives 4,978 — 4,978 — 4,978 Economic hedges of embedded derivatives 32 — 32 (4 ) 28 Foreign currency forward and option contracts 4,107 — 4,107 (50 ) 4,057 9,117 — 9,117 (54 ) 9,063 Additional netting benefit — — — (4,850 ) (4,850 ) $ 19,442 $ — $ 19,442 $ (9,888 ) $ 9,554 (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, 2015 (in thousands): Gross Amounts Gross amounts offset in the balance sheet Net balance sheet amounts (1) Gross amounts not offset in the balance sheet (2) Net Assets: Designated as hedging instruments: Foreign currency forward and option contracts $ 16,027 $ — $ 16,027 $ (813 ) $ 15,214 Not designated as hedging instruments: Embedded derivatives 8,926 — 8,926 — 8,926 Economic hedges of embedded derivatives 744 — 744 — 744 Foreign currency forward contracts 43,203 — 43,203 (34,577 ) 8,626 52,873 — 52,873 (34,577 ) 18,296 Additional netting benefit — — — (9,512 ) (9,512 ) $ 68,900 $ — $ 68,900 $ (44,902 ) $ 23,998 Liabilities: Designated as hedging instruments: Foreign currency forward contracts $ 813 $ — $ 813 $ (813 ) $ — 813 — 813 (813 ) — Not designated as hedging instruments: Embedded derivatives 1,772 — 1,772 — 1,772 Economic hedges of embedded derivatives 417 — 417 — 417 Foreign currency forward and option contracts 76,923 — 76,923 (34,577 ) 42,346 79,112 — 79,112 (34,577 ) 44,535 Additional netting benefit — — — (9,512 ) (9,512 ) $ 79,925 $ — $ 79,925 $ (44,902 ) $ 35,023 (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 | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2016 were as follows (in thousands): Fair value at Fair value measurement using Level 1 Level 2 Assets: Cash $ 396,449 $ 396,449 $ — Money market and deposit accounts 234,119 234,119 — Publicly traded equity securities 3,766 3,766 — Certificates of deposit 15,747 — 15,747 Derivative instruments (1) 23,010 — 23,010 $ 673,091 $ 634,334 $ 38,757 Liabilities: Derivative instruments (1) $ 19,442 $ — $ 19,442 $ 19,442 $ — $ 19,442 (1) Includes both foreign currency embedded derivatives and foreign currency forward and option contracts. Amounts are included within other current assets, other assets, others current liabilities and other liabilities in the Company’s accompanying condensed consolidated balance sheet. The Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 were as follows (in thousands): Fair value at Fair value measurement using Level 1 Level 2 Assets: Cash $ 1,139,554 $ 1,139,554 $ — Money market and deposit accounts 1,089,284 1,089,284 — Publicly traded equity securities 3,353 3,353 — Certificates of deposit 14,106 — 14,106 Derivative instruments (1) 68,900 — 68,900 $ 2,315,197 $ 2,232,191 $ 83,006 Liabilities: Derivative instruments (1) $ 79,925 $ — $ 79,925 $ 79,925 $ — $ 79,925 (1) Includes both foreign currency embedded derivatives and foreign currency forward and option 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 March 31, 2016 and December 31, 2015 . |
Leases
Leases | 3 Months Ended |
Mar. 31, 2016 | |
Leases [Abstract] | |
Leases | Leases Capital Lease and Other Financing Obligations Tokyo 5 ("TY5") Equipment Leases In February 2016, the Company entered into a lease agreement for certain equipment in TY5 data center in Tokyo metro area. The lease was accounted for as a capital lease. Monthly payments under the equipment lease will be made through February 2032 at an effective interest rate of 6.33% . The total obligation under the equipment lease was approximately ¥3,074,947,000 , or $27,335,000 in U.S. dollars at the exchange rate in effect as of March 31, 2016. 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 obligations Other financing obligations (1) Total 2016 (9 months remaining) $ 58,850 $ 64,147 $ 122,997 2017 79,509 86,216 165,725 2018 80,032 82,472 162,504 2019 80,857 77,091 157,948 2020 80,878 74,617 155,495 Thereafter 961,236 794,225 1,755,461 Total minimum lease payments 1,341,362 1,178,768 2,520,130 Plus amount representing residual property value 368 539,509 539,877 Less amount representing interest (629,395 ) (830,142 ) (1,459,537 ) Present value of net minimum lease payments 712,335 888,135 1,600,470 Less current portion (23,269 ) (25,056 ) (48,325 ) $ 689,066 $ 863,079 $ 1,552,145 (1) Other financing obligations are primarily build-to-suit lease obligations. Other financing obligations for data centers to be divested in connection with the Company's acquisition of TelecityGroup are included in liabilities held for sale in the condensed consolidated balance sheet at March 31, 2016 and are not included in the summary of the Company's capital lease and other financing obligations above. Total minimum lease payments under those obligations totaled $56,989,000 at March 31, 2016. |
Debt Facilities
Debt Facilities | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt Facilities | Debt Facilities Mortgage and Loans Payable The Company’s mortgage and loans payable consisted of the following (in thousands): March 31, December 31, 2015 Term loans $ 1,139,986 $ 456,740 Bridge term loan 422,275 386,547 Revolving credit facility borrowings — 325,622 Brazil financings 28,873 27,113 Mortgage payable and other loans payable 49,568 47,677 1,640,702 1,243,699 Less amount representing debt discount and debt issuance cost (15,895 ) (2,681 ) Plus amount representing mortgage premium 2,065 1,987 1,626,872 1,243,005 Less current portion (487,065 ) (770,236 ) $ 1,139,807 $ 472,769 On January 8, 2016, the Company borrowed the full amount of the $250,000,000 and £300,000,000 seven year term loan commitments made available to it under the second amendment to the Company's Senior Credit Facility. The $250,000,000 seven year term loan bears interest at 4.0000% per annum and will be repaid in quarterly installments of $625,000 commencing on June 30, 2016 with the remaining $233,125,000 due on January 8, 2023. The £300,000,000 seven year term loan bears interest at 4.5000% per annum and will be repaid in quarterly installments of £750,000 commencing on June 30, 2016 with the remaining £279,750,000 due on January 8, 2023. The £300,000,000 outstanding term loan was approximately $431,310,000 in U.S. dollars at the exchange rate in effect as of March 31, 2016. On January 15, 2016, the Company prepaid and terminated loans payable of TelecityGroup. In conjunction with the repayment of the loans payable, the company incurred an insignificant amount of pre-payment penalties and interest rate swap termination costs, which were recorded as interest expense in the condensed consolidated statement of operations. See Note 3 for additional information. In February 2016, the Company borrowed the remaining ¥1,040,000,000 , or approximately $9,246,000 in U.S. dollars at the exchange rate in effect as of March 31, 2016, available under its JPY bridge term loan agreement. During the three months ended March 31, 2016, the Company repaid $325,622,000 of borrowings under its revolving credit facility. No borrowings were outstanding under the revolving credit facility as of March 31, 2016. Convertible Debt The Company’s convertible debt consisted of the following (in thousands): March 31, December 31, 2015 4.75% convertible subordinated notes $ 150,082 $ 150,082 Less amount representing debt discount and debt issuance cost (1,800 ) (3,961 ) $ 148,282 $ 146,121 4.75% Convertible Subordinated Notes Holders of the 4.75% convertible subordinated notes were eligible to convert their notes during the quarter ended March 31, 2016 and are eligible to convert their notes during the remaining term of the notes, since the stock price condition conversion clause was met during the applicable periods. As of March 31, 2016 , 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 1,972,258 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. On March 15, 2016, the Company notified convertible bond holders it has elected to deliver shares (and cash in lieu of any fractional shares) in respect of any conversion notices on or after March 15, 2016. 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 . The Company amends the Capped Call agreement each time a special distribution or quarterly dividend is declared to adjust the effective conversion price of the 4.75% Convertible Subordinated Notes. Pursuant to the declaration of the quarterly dividend in February 2016, the Company further amended the Capped Call agreement to adjust the effective conversion price of the 4.75% convertible subordinated notes from $76.10 to $103.54 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 1,301,644 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 $76.10 or lower at the time of conversion and will receive less shares than the 1,301,644 share maximum as described above for share prices in excess of $103.54 at the time of conversion than it would have received at a share price of $103.54 (the Company’s benefit from the Capped Call is capped at $103.54 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): March 31, December 31, 2015 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 5.875% Senior Notes due 2026 1,100,000 1,100,000 3,850,000 3,850,000 Less amount representing debt issuance cost (43,833 ) (45,366 ) $ 3,806,167 $ 3,804,634 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 March 31, 2016 (in thousands): Year ending: 2016 (9 months remaining) $ 624,264 2017 60,136 2018 56,255 2019 356,803 2020 510,232 Thereafter 4,035,159 $ 5,642,849 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): March 31, December 31, 2015 Mortgage and loans payable $ 1,624,926 $ 916,602 Convertible debt 152,896 151,997 Senior notes 4,024,875 3,954,000 Revolving credit line — 325,617 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 2016 2015 Interest expense $ 100,863 $ 68,791 Interest capitalized 2,286 3,203 Interest charges incurred $ 103,149 $ 71,994 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments Primarily as a result of the Company’s various IBX expansion projects, as of March 31, 2016 , the Company was contractually committed for $410.7 million of unaccrued capital expenditures, primarily for IBX infrastructure 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 March 31, 2016 , such as commitments to purchase power in select locations through the remainder of 2016 and thereafter, and other open purchase orders for goods or services to be delivered or provided during the remainder of 2016 and thereafter. Such other miscellaneous purchase commitments totaled $442.4 million as of March 31, 2016 . |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | 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 Change Balance as of Foreign currency translation adjustment (“CTA”) gain (loss) $ (523,709 ) $ 115,899 $ (407,810 ) Unrealized gain (loss) on cash flow hedges 11,153 (6,784 ) 4,369 Unrealized loss on available-for-sale securities (139 ) (304 ) (443 ) Net investment hedge CTA gain (loss) 4,484 (16,312 ) (11,828 ) Net actuarial gain (loss) on defined benefit plans (848 ) 6 (842 ) $ (509,059 ) $ 92,505 $ (416,554 ) 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 generally translate into more U.S. dollars when the U.S. dollar weakens or less U.S. dollars when the U.S. dollar strengthens. As of March 31, 2016 , the U.S. dollar was generally weaker relative to certain of the currencies of the foreign countries in which the Company operates. This overall weakening of the U.S. dollar had an overall favorable impact on the Company’s consolidated financial position because the foreign denominations translated into more U.S. dollars as evidenced by an increase in foreign currency translation gain for the three months ended March 31, 2016 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 On February 18, 2016 , the Company declared a quarterly cash dividend of $1.75 per share, with a record date of March 9, 2016 and a payment date of March 23, 2016 . The Company paid a total of $121,494,000 on March 23, 2016 for the first quarter cash dividend. In addition, the Company accrued an additional $1,366,000 in dividends payable for the restricted stock units that have not yet vested. Stock-Based Compensation In the first quarter of 2016, the Compensation Committee and the Stock Award Committee of the Company’s Board of Directors approved the issuance of an aggregate of 526,988 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 $290.46 and a weighted-average requisite service period of 3.48 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. 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 2016, 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 2016 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 2016 2015 Cost of revenues $ 2,997 $ 2,306 Sales and marketing 9,771 8,711 General and administrative 21,747 19,596 $ 34,515 $ 30,613 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | 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, acquisition costs and gains on asset sales as presented below (in thousands): Three months ended 2016 2015 Adjusted EBITDA: Americas $ 184,460 $ 172,734 EMEA 111,489 76,031 Asia-Pacific 84,701 56,983 Total adjusted EBITDA 380,650 305,748 Depreciation, amortization and accretion expense (202,153 ) (122,530 ) Stock-based compensation expense (34,515 ) (30,613 ) Acquisition costs (36,536 ) (1,156 ) Gains on asset sales 5,242 — Income from operations $ 112,688 $ 151,449 The Company also provides the following additional segment disclosures (in thousands): Three months ended 2016 2015 Total revenues: Americas $ 404,394 $ 363,969 EMEA 267,856 164,623 Asia-Pacific 171,906 114,582 $ 844,156 $ 643,174 Total depreciation and amortization: Americas $ 76,259 $ 66,727 EMEA 76,050 26,507 Asia-Pacific 48,225 28,402 $ 200,534 $ 121,636 Capital expenditures: Americas $ 83,499 $ 82,726 EMEA 57,273 27,556 Asia-Pacific 56,928 39,838 $ 197,700 $ 150,120 The Company’s long-lived assets are located in the following geographic areas as of (in thousands): March 31, December 31, Americas $ 3,074,737 $ 3,025,450 EMEA 2,287,091 1,157,304 Asia-Pacific 1,526,404 1,423,682 $ 6,888,232 $ 5,606,436 Revenue information on a services basis is as follows (in thousands): Three months ended 2016 2015 Colocation $ 619,893 $ 481,545 Interconnection 127,205 101,658 Managed infrastructure 44,736 23,855 Other 5,260 2,599 Recurring revenues 797,094 609,657 Non-recurring revenues 47,062 33,517 $ 844,156 $ 643,174 No single customer accounted for 10% or greater of the Company’s revenues for the three months ended March 31, 2016 and 2015 . No single customer accounted for 10% or greater of the Company’s gross accounts receivable as of March 31, 2016 and December 31, 2015 . |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On May 4, 2016, the Company declared a quarterly cash dividend of $1.75 per share, which is payable on June 15, 2016 to the Company’s common stockholders of record as of the close of business on May 25, 2016. |
Basis of Presentation and Sig19
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015 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 February 26, 2016. 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, including the acquisitions of Telecity Group plc (“TelecityGroup”) from January 15, 2016, Bit-isle Inc. (“Bit-isle”) from November 2, 2015 and Nimbo Technologies Inc. (“Nimbo”) from January 14, 2015. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Income Taxes | Income Taxes The Company began operating as a real estate investment trust for federal income tax purposes ("REIT") effective January 1, 2015. In May 2015, the Company received a favorable response to a 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 performance of the Company, tax law changes and future business acquisitions. |
Assets Held for Sale and Discontinued Operations | Assets Held for Sale and Discontinued Operations Assets and liabilities to be disposed of that meet all of the criteria to be classified as held for sale as set forth in the accounting standard for impairment or disposal of long-lived assets are reported at the lower of their carrying amounts or fair values less costs to sell. Assets are not depreciated or amortized while they are classified as held for sale. A component of a reporting entity or a group of components of a reporting entity that are disposed or meet the criteria to be classified as held for sale should be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. The accounting guidance requires a business activity that, on acquisition, meets the criteria to be classified as held for sale be reported as a discontinued operation. Accordingly, the results of operations for the TelecityGroup data centers that will be divested have been reported as net income from discontinued operations, net of tax, from January 15, 2016, the date of the acquisition, through March 31, 2016 in the Company's condensed consolidated statement of operations. For further information on the Company’s assets held for sale and discontinued operations, see Notes 4 and 5. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). This ASU simplifies several areas of the accounting for share-based payment award transactions, including ( a ) income tax consequences; ( b ) classification of awards as either equity or liabilities; and ( c ) classification on the statement of cash flows. This ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods, 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 March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815), Contingent Put and Call Options in Debt Instruments ("ASU 2016-06"). This ASU clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in this ASU is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. This guidance should be applied on a modified retrospective basis to existing debt instruments as of the beginning of the fiscal year in which the amendments are effective, and is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815), Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships ("ASU 2016-05"). This ASU clarifies that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument under Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. This ASU may be applied prospectively or using a modified retrospective approach, and is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ("ASU 2016-02"). Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. ASU 2016-02 is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. While the Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements, the Company believes this standard will have a significant impact on its consolidated financial statements due, in part, to the substantial amount of operating leases it has. In January 2016, the FASB issued ASU 2016-01, Financial Instruments- Overall (Subtopic 825-10) ("ASU 2016-01"), which requires all equity investments to be measured at fair value with changes in the fair value recognized through net income other than those accounted for under equity method of accounting or those that result in consolidation of the investees). The ASU also requires that an entity present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, the ASU eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities and the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. ASU 2016-01 is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, Business Combinations ("ASU 2015-16"), 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 adopted ASU 2015-16 in the three months ended March 31, 2016. The adoption of ASU 2015-16 did not have a significant impact on the Company's 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 adopted ASU 2015-07 in the three months ended March 31, 2016. The adoption of ASU 2015-07 did not have a significant impact on the Company's consolidated financial statements. 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 a 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 adopted ASU 2015-02 in the three months ended March 31, 2016. The adoption of ASU 2015-02 did not have a significant impact on the Company's consolidated financial statements. In January 2015, the 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 adopted ASU 2015-01 in the three months ended March 31, 2016. The adoption of ASU 2015-01 did not have a significant impact on the Company's 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. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers, which clarifies the implementation guidance of principal-versus-agent considerations. The Company is currently evaluating the impact that the adoption of this standard and its amendments will have on its consolidated financial statements. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments clarify the following two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The ASU 2016-10 is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein (i.e., January 1, 2018, for a calendar year entity). Early application for public entities is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. |
Cash Flow Hedges | Cash Flow Hedges. The Company hedges its exposure to foreign currency exchange rate fluctuations for forecasted revenues and expenses in its EMEA region in order to help manage the Company’s exposure to foreign currency exchange rate fluctuations between the U.S. dollar and the British Pound, Euro and Swiss Franc. The foreign currency forward and option contracts that the Company uses to hedge this exposure are designated as cash flow hedges under the accounting standard for derivatives and hedging. |
Derivatives Not Designated as Hedging Instruments | Derivatives Not Designated as Hedging 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. Gains and losses on these embedded derivatives are included within revenues in the Company’s condensed consolidated statements of operations. During the three months ended March 31, 2016, the loss associated with these embedded derivatives were $6,559,000 and during the three months ended March 31,2015, the gains (losses) associated with these embedded derivatives were insignificant. Economic Hedges of Embedded Derivatives. The Company uses foreign currency forward contracts to manage the foreign exchange risk associated with the Company’s customer agreements that are priced in currencies different from the functional or local currencies of the parties involved (“economic hedges of embedded derivatives”). Foreign currency forward contracts represent agreements to exchange the currency of one country for the currency of another country at an agreed-upon price on an agreed-upon settlement date. Gains and losses on these contracts are included in revenues along with gains and losses of the related embedded derivatives. The Company entered into various economic hedges of embedded derivatives during the three months ended March 31, 2016 and 2015 . During the three months ended March 31, 2016, the gains associated with these contracts were $3,690,000 and during the three months ended March 31, 2015, the gains (losses) from these contracts were insignificant. Foreign Currency Forward and Option Contracts. The Company also uses foreign currency forward and option 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 its foreign currency-denominated assets and liabilities change. Gains and losses on these contracts are included in other income (expense), net, along with foreign currency gains and losses of the related foreign currency-denominated assets and liabilities associated with these foreign currency forward and contracts. The Company entered into various foreign currency forward and option contracts during the three months ended March 31, 2016 and 2015. During the three months ended March 31, 2016 and 2015 , the company recognized a net loss of $7,593,000 and a net gain of $10,257,000 , respectively, associated with these 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) | 3 Months Ended |
Mar. 31, 2016 | |
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 2016 2015 Net income (loss): Net income (loss) from continuing operations $ (37,327 ) $ 76,452 Net income from discontinued operations 6,216 — Net income (loss) $ (31,111 ) $ 76,452 Weighted-average shares used to calculate basic EPS 68,132 56,661 Effect of dilutive securities: Employee equity awards — 566 Weighted-average shares used to calculate diluted EPS 68,132 57,227 Basic EPS: Continuing operations $ (0.55 ) $ 1.35 Discontinued operations 0.09 — Basic EPS $ (0.46 ) $ 1.35 Diluted EPS: Continuing operations $ (0.55 ) $ 1.34 Discontinued operations 0.09 — Diluted EPS $ (0.46 ) $ 1.34 |
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 2016 2015 Shares reserved for conversion of 4.75% convertible subordinated notes 1,969 1,942 Common stock related to employee equity awards 1,583 211 3,552 2,153 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Based upon the purchase price and the valuation of Bit-isle, the purchase price allocation was as follows (in thousands): Cash and cash equivalent $ 33,198 Accounts receivable 7,359 Other current assets 51,038 Long-term investments 3,806 Property, plant and equipment 308,985 Goodwill 95,444 Intangible assets 111,374 Other assets 22,981 Total assets acquired 634,185 Accounts payable and accrued expenses (15,028 ) Accrued property, plant and equipment (465 ) Capital lease and other financing obligations (108,833 ) Mortgage and loans payable (190,227 ) Other current liabilities (8,689 ) Deferred tax liabilities (32,192 ) Other liabilities (3,384 ) Net assets acquired $ 275,367 As of the acquisition date, the preliminary allocation of the purchase price is as follows (in thousands): Cash and cash equivalents $ 73,368 Accounts receivable 20,022 Other current assets 39,929 Property, plant and equipment 1,249,374 Goodwill 2,745,913 Intangible assets 861,817 Deferred tax assets 568 Other assets 4,123 Total assets acquired 4,995,114 Accounts payable and accrued expenses (163,490 ) Accrued property, plant and equipment (3,634 ) Capital lease and other financing obligations (263,894 ) Mortgage and loans payable (592,304 ) Other current liabilities (33,730 ) Deferred tax liabilities (156,667 ) Other liabilities (36,509 ) Net assets acquired $ 3,744,886 |
Acquired Identifiable Intangible Assets | The following table presents certain information on the acquired identifiable intangible assets (dollars in thousands): Intangible assets Fair value Estimated useful lives (years) Weighted-average estimated useful lives (years) Customer relationships $ 105,434 13 13 Trade name 3,455 2 2 Favorable solar contracts 2,410 18 18 Other intangible assets 75 0.25 0.25 The following table presents certain information on the acquired intangible assets (dollars in thousands): Intangible assets Fair value Estimated useful lives (years) Weighted-average estimated useful lives (years) Customer relationships $ 764,550 13.5 13.5 Trade names 72,033 1.5 1.5 Favorable leases 25,234 2.4 - 33.0 13.6 |
Unaudited Pro Forma Combined Consolidated Statements of Operations | The following table sets forth the unaudited pro forma consolidated combined results of operations for the three months ended March 31, 2015 (in thousands): Three months ended March 31, 2015 Revenues $ 778,536 Net income from continuing operations 50,960 Basic EPS 0.80 Diluted EPS 0.80 |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Assets Held-for-sale | The following table summarizes assets and liabilities that were classified in assets and liabilities held for sale as of March 31, 2016 and December 31, 2015 (in thousands): March 31, December 31, Accounts receivable $ 9,011 $ 2,222 Other current assets 3,178 408 Property, plant and equipment 216,364 23,533 Goodwill 518,766 5,000 Intangible assets 206,644 784 Other assets 1,941 1,310 Total assets held for sale 955,904 $ 33,257 Accounts payable, accrued expenses and estimated costs to sell $ (56,367 ) $ (654 ) Accrued property, plant and equipment — (816 ) Current portion of capital lease and other financing obligation (93 ) — Other current liabilities (4,048 ) (435 ) Capital lease and other financing obligations, less current portion (56,896 ) — Other liabilities (7,167 ) (1,630 ) Total liabilities held for sale $ (124,571 ) $ (3,535 ) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Financial Results of Discontinued Operations | The following table presents the financial results of the discontinued operations: Three months ended Revenues $ 20,581 Costs and operating expenses: Cost of revenues 11,610 Sales and marketing 217 General and administrative 383 Total costs and operating expenses 12,210 Income from operations of discontinued operations 8,371 Interest and other, net (469 ) Income from discontinued operations before income taxes 7,902 Income tax expense (1,686 ) Income from discontinued operations, net of income taxes $ 6,216 |
Derivatives and Hedging Activ24
Derivatives and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Cash Flow Hedges | As of March 31, 2016 , the Company’s cash flow hedges had maturities dates ranging from April 2016 to December 2017 as follows (in thousands): Notional Amount Fair Value (1) Accumulated other comprehensive income (loss) (2) (3) Derivative assets $ 282,657 $ 11,965 $ 27,270 Derivative liabilities 236,860 (6,762 ) (21,445 ) $ 519,517 $ 5,203 $ 5,825 (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 $ 5,951 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, 2015 , the Company’s cash flow hedges had maturities dates ranging from January 2016 to December 2017 as follows (in thousands): Notional Amount Fair Value (1) Accumulated other comprehensive income (loss) (2)(3) Derivative assets $ 367,330 $ 16,027 $ 34,578 Derivative liabilities 47,447 (813 ) (19,709 ) $ 414,777 $ 15,214 $ 14,869 (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 $12,940 within accumulated other comprehensive income (loss) relating to cash flow hedges that will be reclassified to revenue and expense as they mature over the next 12 months. |
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 March 31, 2016 (in thousands): Gross Amounts Gross amounts offset in the balance sheet Net amounts (1) Gross amounts not offset in the balance sheet (2) Net Assets: Designated as hedging instruments: Cash flow hedges Foreign currency forward contracts $ 11,965 $ — $ 11,965 $ (4,984 ) $ 6,981 Net Investment Hedges Foreign currency forward contracts — — — — — 11,965 — 11,965 (4,984 ) 6,981 Not designated as hedging instruments: Embedded derivatives 5,871 — 5,871 — 5,871 Economic hedges of embedded derivatives 2,035 — 2,035 (4 ) 2,031 Foreign currency forward and option contracts 3,139 — 3,139 (50 ) 3,089 11,045 — 11,045 (54 ) 10,991 Additional netting benefit — — — (4,850 ) (4,850 ) $ 23,010 $ — $ 23,010 $ (9,888 ) $ 13,122 Liabilities: Designated as hedging instruments Cash flow hedges Foreign currency forward contracts $ 6,762 $ — $ 6,762 $ (4,984 ) $ 1,778 Net Investment Hedges Foreign currency forward contracts 3,563 — 3,563 — 3,563 10,325 — 10,325 (4,984 ) 5,341 Not designated as hedging instruments: Embedded derivatives 4,978 — 4,978 — 4,978 Economic hedges of embedded derivatives 32 — 32 (4 ) 28 Foreign currency forward and option contracts 4,107 — 4,107 (50 ) 4,057 9,117 — 9,117 (54 ) 9,063 Additional netting benefit — — — (4,850 ) (4,850 ) $ 19,442 $ — $ 19,442 $ (9,888 ) $ 9,554 (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, 2015 (in thousands): Gross Amounts Gross amounts offset in the balance sheet Net balance sheet amounts (1) Gross amounts not offset in the balance sheet (2) Net Assets: Designated as hedging instruments: Foreign currency forward and option contracts $ 16,027 $ — $ 16,027 $ (813 ) $ 15,214 Not designated as hedging instruments: Embedded derivatives 8,926 — 8,926 — 8,926 Economic hedges of embedded derivatives 744 — 744 — 744 Foreign currency forward contracts 43,203 — 43,203 (34,577 ) 8,626 52,873 — 52,873 (34,577 ) 18,296 Additional netting benefit — — — (9,512 ) (9,512 ) $ 68,900 $ — $ 68,900 $ (44,902 ) $ 23,998 Liabilities: Designated as hedging instruments: Foreign currency forward contracts $ 813 $ — $ 813 $ (813 ) $ — 813 — 813 (813 ) — Not designated as hedging instruments: Embedded derivatives 1,772 — 1,772 — 1,772 Economic hedges of embedded derivatives 417 — 417 — 417 Foreign currency forward and option contracts 76,923 — 76,923 (34,577 ) 42,346 79,112 — 79,112 (34,577 ) 44,535 Additional netting benefit — — — (9,512 ) (9,512 ) $ 79,925 $ — $ 79,925 $ (44,902 ) $ 35,023 (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) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 were as follows (in thousands): Fair value at Fair value measurement using Level 1 Level 2 Assets: Cash $ 396,449 $ 396,449 $ — Money market and deposit accounts 234,119 234,119 — Publicly traded equity securities 3,766 3,766 — Certificates of deposit 15,747 — 15,747 Derivative instruments (1) 23,010 — 23,010 $ 673,091 $ 634,334 $ 38,757 Liabilities: Derivative instruments (1) $ 19,442 $ — $ 19,442 $ 19,442 $ — $ 19,442 (1) Includes both foreign currency embedded derivatives and foreign currency forward and option contracts. Amounts are included within other current assets, other assets, others current liabilities and other liabilities in the Company’s accompanying condensed consolidated balance sheet. The Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 were as follows (in thousands): Fair value at Fair value measurement using Level 1 Level 2 Assets: Cash $ 1,139,554 $ 1,139,554 $ — Money market and deposit accounts 1,089,284 1,089,284 — Publicly traded equity securities 3,353 3,353 — Certificates of deposit 14,106 — 14,106 Derivative instruments (1) 68,900 — 68,900 $ 2,315,197 $ 2,232,191 $ 83,006 Liabilities: Derivative instruments (1) $ 79,925 $ — $ 79,925 $ 79,925 $ — $ 79,925 (1) Includes both foreign currency embedded derivatives and foreign currency forward and option 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) | 3 Months Ended |
Mar. 31, 2016 | |
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 obligations Other financing obligations (1) Total 2016 (9 months remaining) $ 58,850 $ 64,147 $ 122,997 2017 79,509 86,216 165,725 2018 80,032 82,472 162,504 2019 80,857 77,091 157,948 2020 80,878 74,617 155,495 Thereafter 961,236 794,225 1,755,461 Total minimum lease payments 1,341,362 1,178,768 2,520,130 Plus amount representing residual property value 368 539,509 539,877 Less amount representing interest (629,395 ) (830,142 ) (1,459,537 ) Present value of net minimum lease payments 712,335 888,135 1,600,470 Less current portion (23,269 ) (25,056 ) (48,325 ) $ 689,066 $ 863,079 $ 1,552,145 (1) Other financing obligations are primarily build-to-suit lease obligations. |
Debt Facilities (Tables)
Debt Facilities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Loans Payable and Senior Notes | The Company’s mortgage and loans payable consisted of the following (in thousands): March 31, December 31, 2015 Term loans $ 1,139,986 $ 456,740 Bridge term loan 422,275 386,547 Revolving credit facility borrowings — 325,622 Brazil financings 28,873 27,113 Mortgage payable and other loans payable 49,568 47,677 1,640,702 1,243,699 Less amount representing debt discount and debt issuance cost (15,895 ) (2,681 ) Plus amount representing mortgage premium 2,065 1,987 1,626,872 1,243,005 Less current portion (487,065 ) (770,236 ) $ 1,139,807 $ 472,769 The Company’s senior notes consisted of the following as of (in thousands): March 31, December 31, 2015 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 5.875% Senior Notes due 2026 1,100,000 1,100,000 3,850,000 3,850,000 Less amount representing debt issuance cost (43,833 ) (45,366 ) $ 3,806,167 $ 3,804,634 |
Convertible Debt | The Company’s convertible debt consisted of the following (in thousands): March 31, December 31, 2015 4.75% convertible subordinated notes $ 150,082 $ 150,082 Less amount representing debt discount and debt issuance cost (1,800 ) (3,961 ) $ 148,282 $ 146,121 |
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 March 31, 2016 (in thousands): Year ending: 2016 (9 months remaining) $ 624,264 2017 60,136 2018 56,255 2019 356,803 2020 510,232 Thereafter 4,035,159 $ 5,642,849 |
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): March 31, December 31, 2015 Mortgage and loans payable $ 1,624,926 $ 916,602 Convertible debt 152,896 151,997 Senior notes 4,024,875 3,954,000 Revolving credit line — 325,617 |
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 2016 2015 Interest expense $ 100,863 $ 68,791 Interest capitalized 2,286 3,203 Interest charges incurred $ 103,149 $ 71,994 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 Change Balance as of Foreign currency translation adjustment (“CTA”) gain (loss) $ (523,709 ) $ 115,899 $ (407,810 ) Unrealized gain (loss) on cash flow hedges 11,153 (6,784 ) 4,369 Unrealized loss on available-for-sale securities (139 ) (304 ) (443 ) Net investment hedge CTA gain (loss) 4,484 (16,312 ) (11,828 ) Net actuarial gain (loss) on defined benefit plans (848 ) 6 (842 ) $ (509,059 ) $ 92,505 $ (416,554 ) |
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 2016 2015 Cost of revenues $ 2,997 $ 2,306 Sales and marketing 9,771 8,711 General and administrative 21,747 19,596 $ 34,515 $ 30,613 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, acquisition costs and gains on asset sales as presented below (in thousands): Three months ended 2016 2015 Adjusted EBITDA: Americas $ 184,460 $ 172,734 EMEA 111,489 76,031 Asia-Pacific 84,701 56,983 Total adjusted EBITDA 380,650 305,748 Depreciation, amortization and accretion expense (202,153 ) (122,530 ) Stock-based compensation expense (34,515 ) (30,613 ) Acquisition costs (36,536 ) (1,156 ) Gains on asset sales 5,242 — Income from operations $ 112,688 $ 151,449 |
Segment Disclosures | The Company also provides the following additional segment disclosures (in thousands): Three months ended 2016 2015 Total revenues: Americas $ 404,394 $ 363,969 EMEA 267,856 164,623 Asia-Pacific 171,906 114,582 $ 844,156 $ 643,174 Total depreciation and amortization: Americas $ 76,259 $ 66,727 EMEA 76,050 26,507 Asia-Pacific 48,225 28,402 $ 200,534 $ 121,636 Capital expenditures: Americas $ 83,499 $ 82,726 EMEA 57,273 27,556 Asia-Pacific 56,928 39,838 $ 197,700 $ 150,120 |
Segment Long-Lived Assets | The Company’s long-lived assets are located in the following geographic areas as of (in thousands): March 31, December 31, Americas $ 3,074,737 $ 3,025,450 EMEA 2,287,091 1,157,304 Asia-Pacific 1,526,404 1,423,682 $ 6,888,232 $ 5,606,436 |
Revenue Information on Services Basis | Revenue information on a services basis is as follows (in thousands): Three months ended 2016 2015 Colocation $ 619,893 $ 481,545 Interconnection 127,205 101,658 Managed infrastructure 44,736 23,855 Other 5,260 2,599 Recurring revenues 797,094 609,657 Non-recurring revenues 47,062 33,517 $ 844,156 $ 643,174 |
Basis of Presentation and Sig30
Basis of Presentation and Significant Accounting Policies (Detail) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Accounting Policies [Abstract] | ||
Effective income tax rate, continuing operations | 22.20% | 7.50% |
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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Net income (loss) from continuing operations | $ (37,327) | $ 76,452 |
Net income from discontinued operations | 6,216 | 0 |
Net income (loss) | $ (31,111) | $ 76,452 |
Weighted-average shares used to calculate basic EPS | 68,132 | 56,661 |
Effect of dilutive securities: | ||
Employee equity awards | 0 | 566 |
Weighted-average shares used to calculate diluted EPS | 68,132 | 57,227 |
Basic EPS from continuing operations (in dollars per share) | $ (0.55) | $ 1.35 |
Basic EPS from discontinued operations (in dollars per share) | 0.09 | 0 |
Basic EPS (in dollars per share) | (0.46) | 1.35 |
Diluted EPS from continuing operations (in dollars per share) | (0.55) | 1.34 |
Diluted EPS from discontinued operations (in dollars per share) | 0.09 | 0 |
Diluted EPS (in dollars per share) | $ (0.46) | $ 1.34 |
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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
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 | 3,552 | 2,153 |
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 | 1,583 | 211 |
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 | 1,969 | 1,942 |
Convertible debt interest rate | 4.75% | 4.75% |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) ¥ / shares in Units, £ / shares in Units, $ in Thousands | Jan. 15, 2016GBP (£)£ / shares | Jan. 15, 2016USD ($) | Nov. 02, 2015USD ($) | Jan. 14, 2015USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Nov. 02, 2015¥ / shares | Nov. 02, 2015USD ($) | Sep. 30, 2015JPY (¥) | May. 29, 2015GBP (£) | May. 29, 2015USD ($) |
Business Acquisition [Line Items] | |||||||||||||
Revenue | $ 844,156 | $ 643,174 | |||||||||||
Goodwill | $ 3,336,968 | 3,336,968 | $ 1,063,200 | ||||||||||
Telecity Group plc [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Consideration transferred (GBP per share) | £ / shares | £ 5.725 | ||||||||||||
Number of shares issued per share acquired | 0.0336 | 0.0336 | |||||||||||
Consideration transferred | £ 2,624,500,000 | $ 3,743,587 | |||||||||||
Unvested employee equity awards assumed | 1,299 | ||||||||||||
Acquisition costs | 36,185 | ||||||||||||
Cash placed in restricted account | £ 322,851,000 | $ 475,689 | |||||||||||
Revenue | 84,439 | ||||||||||||
Net loss | $ 2,821 | ||||||||||||
Goodwill | $ 2,745,913 | ||||||||||||
Telecity Group plc [Member] | Customer relationships [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Discount rate (percent) | 8.50% | 8.50% | |||||||||||
Telecity Group plc [Member] | Trade name [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Discount rate (percent) | 9.00% | 9.00% | |||||||||||
Relief of royalty rate (percent) | 0.020 | 0.020 | |||||||||||
Telecity Group plc [Member] | Bridge term loan [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Short-term debt | £ 875,000,000 | $ 1,289,000 | |||||||||||
Bit-isle [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Revenue | 34,204 | ||||||||||||
Net loss | $ 4,213 | ||||||||||||
Percentage of outstanding shares including stock options | 97.00% | ||||||||||||
Offer price (in jpy per share) | ¥ / shares | ¥ 922 | ||||||||||||
Cash consideration for acquisition | $ 275,367 | ||||||||||||
Goodwill | $ 95,444 | ||||||||||||
Bit-isle [Member] | Customer relationships [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Discount rate (percent) | 11.00% | ||||||||||||
Bit-isle [Member] | Trade name [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Discount rate (percent) | 12.00% | ||||||||||||
Relief of royalty rate (percent) | 0.020 | ||||||||||||
Bit-isle [Member] | Bridge term loan [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Loans payable | $ 422,275 | ¥ 47,500,000,000 | |||||||||||
Nimbo Technologies Inc [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash consideration for acquisition | $ 10,000 | ||||||||||||
Contingent earn out period (in years) | 2 years | ||||||||||||
Goodwill | $ 17,192 |
Acquisitions - Preliminary Purc
Acquisitions - Preliminary Purchase Price Allocation (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Jan. 15, 2016 | Dec. 31, 2015 | Nov. 02, 2015 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 3,336,968 | $ 1,063,200 | ||
Telecity Group plc [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 73,368 | |||
Accounts receivable | 20,022 | |||
Other current assets | 39,929 | |||
Property, plant and equipment | 1,249,374 | |||
Goodwill | 2,745,913 | |||
Intangible assets | 861,817 | |||
Deferred tax assets | 568 | |||
Other assets | 4,123 | |||
Total assets acquired | 4,995,114 | |||
Accounts payable and accrued expenses | (163,490) | |||
Accrued property, plant and equipment | (3,634) | |||
Capital lease and other financing obligations | (263,894) | |||
Mortgage and loans payable | (592,304) | |||
Other current liabilities | (33,730) | |||
Deferred tax liabilities | (156,667) | |||
Other liabilities | (36,509) | |||
Net assets acquired | $ 3,744,886 | |||
Bit-isle [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 33,198 | |||
Accounts receivable | 7,359 | |||
Other current assets | 51,038 | |||
Long-term investments | 3,806 | |||
Property, plant and equipment | 308,985 | |||
Goodwill | 95,444 | |||
Intangible assets | 111,374 | |||
Other assets | 22,981 | |||
Total assets acquired | 634,185 | |||
Accounts payable and accrued expenses | (15,028) | |||
Accrued property, plant and equipment | (465) | |||
Capital lease and other financing obligations | (108,833) | |||
Mortgage and loans payable | (190,227) | |||
Other current liabilities | (8,689) | |||
Deferred tax liabilities | (32,192) | |||
Other liabilities | (3,384) | |||
Net assets acquired | $ 275,367 |
Acquisitions - Acquired Identif
Acquisitions - Acquired Identifiable Intangible Assets (Detail) - USD ($) $ in Thousands | Jan. 15, 2016 | Nov. 02, 2015 |
Telecity Group plc [Member] | Customer relationships [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of intangible assets acquired | $ 764,550 | |
Estimated useful lives | 13 years 6 months | |
Weighted-average estimated useful lives | 13 years 6 months | |
Telecity Group plc [Member] | Trade name [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of intangible assets acquired | $ 72,033 | |
Estimated useful lives | 1 year 6 months | |
Weighted-average estimated useful lives | 1 year 6 months | |
Telecity Group plc [Member] | Favorable leases [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of intangible assets acquired | $ 25,234 | |
Weighted-average estimated useful lives | 13 years 7 months 6 days | |
Telecity Group plc [Member] | Favorable leases [Member] | Minimum [Member] | ||
Business Acquisition [Line Items] | ||
Estimated useful lives | 2 years 4 months 24 days | |
Telecity Group plc [Member] | Favorable leases [Member] | Maximum [Member] | ||
Business Acquisition [Line Items] | ||
Estimated useful lives | 33 years | |
Bit-isle [Member] | Customer relationships [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of intangible assets acquired | $ 105,434 | |
Estimated useful lives | 13 years | |
Weighted-average estimated useful lives | 13 years | |
Bit-isle [Member] | Trade name [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of intangible assets acquired | $ 3,455 | |
Estimated useful lives | 2 years | |
Weighted-average estimated useful lives | 2 years | |
Bit-isle [Member] | Favorable solar contracts [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of intangible assets acquired | $ 2,410 | |
Estimated useful lives | 18 years | |
Weighted-average estimated useful lives | 18 years | |
Bit-isle [Member] | Other intangible assets [Member] | ||
Business Acquisition [Line Items] | ||
Fair value of intangible assets acquired | $ 75 | |
Estimated useful lives | 3 months | |
Weighted-average estimated useful lives | 3 months |
Acquisitions - Unaudited Pro Fo
Acquisitions - Unaudited Pro Forma Combined Consolidated Statements of Operations (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2015USD ($)$ / shares | |
Business Combinations [Abstract] | |
Revenues | $ | $ 778,536 |
Net income attributable to Equinix | $ | $ 50,960 |
Basic EPS (in dollars per share) | $ / shares | $ 0.80 |
Diluted EPS (in dollars per share) | $ / shares | $ 0.80 |
Assets Held for Sale (Details)
Assets Held for Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenues | $ 20,581 | ||
Gains on asset sales | 5,242 | $ 0 | |
Disposal Group, Including Discontinued Operation, Unclassified Balance Sheet Disclosures [Abstract] | |||
Total assets held for sale | 955,904 | $ 33,257 | |
Total liabilities held for sale | (124,571) | (3,535) | |
Held-for-sale [Member] | London 2 data center in London, UK (LD2) [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenues | 3,166 | $ 4,682 | |
Disposal Group, Including Discontinued Operation, Unclassified Balance Sheet Disclosures [Abstract] | |||
Accounts receivable | 9,011 | 2,222 | |
Other current assets | 3,178 | 408 | |
Property, plant and equipment | 216,364 | 23,533 | |
Goodwill | 518,766 | 5,000 | |
Intangible assets | 206,644 | 784 | |
Other assets | 1,941 | 1,310 | |
Total assets held for sale | 955,904 | 33,257 | |
Accounts payable, accrued expenses and estimated costs to sell | (56,367) | (654) | |
Accrued property, plant and equipment | 0 | (816) | |
Current portion of capital lease and other financing obligation | (93) | 0 | |
Other current liabilities | (4,048) | (435) | |
Capital lease and other financing obligations, less current portion | (56,896) | 0 | |
Other liabilities | (7,167) | (1,630) | |
Total liabilities held for sale | $ (124,571) | $ (3,535) |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Discontinued Operation, Income (Loss) from Discontinued Operation Disclosures [Abstract] | ||
Revenues | $ 20,581 | |
Cost of revenues | 11,610 | |
Sales and marketing | 217 | |
General and administrative | 383 | |
Total costs and operating expenses | 12,210 | |
Income from operations of discontinued operations | 8,371 | |
Interest and other, net | (469) | |
Income from discontinued operations before income taxes | 7,902 | |
Income tax expense | (1,686) | |
Income from discontinued operations, net of income taxes | 6,216 | $ 0 |
Total operating cash flows of discontinued operations | 11,769 | |
Total investing cash flows of discontinued operations | $ 23,428 |
Derivatives and Hedging Activ39
Derivatives and Hedging Activities - Additional Information (Detail) | Jan. 08, 2016GBP (£) | Jan. 08, 2016USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) |
Derivative [Line Items] | |||||
Foreign currency translation adjustment (“CTA”) gain (loss) | $ 115,899,000 | $ (146,311,000) | |||
Gains (losses) reclassified from accumulated other comprehensive income (loss) to revenues | 6,446,000 | 8,078,000 | |||
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | 3,831,000 | ||||
Designated as hedging instruments [Member] | |||||
Derivative [Line Items] | |||||
Total principal amount of foreign currency loans designated as net investment hedges | 844,278,000 | $ 411,881,000 | |||
Foreign currency translation adjustment (“CTA”) gain (loss) | (16,312,000) | ||||
Not designated as hedging instruments [Member] | Embedded derivatives [Member] | |||||
Derivative [Line Items] | |||||
Net gains (losses) on embedded derivatives | 6,559,000 | ||||
Not designated as hedging instruments [Member] | Economic hedges of embedded derivatives [Member] | |||||
Derivative [Line Items] | |||||
Net gains (losses) on embedded derivatives | (3,690,000) | ||||
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 | $ (7,593,000) | $ 10,257,000 | |||
Term loans [Member] | |||||
Derivative [Line Items] | |||||
Term of debt | 7 years | 7 years | |||
Term loans [Member] | USD Term B Loan Facility [Member] | |||||
Derivative [Line Items] | |||||
Proceeds from line of credit | $ 250,000,000 | ||||
Term of debt | 7 years | 7 years | |||
Term loans [Member] | Sterling Term B Loan Commitment [Member] | |||||
Derivative [Line Items] | |||||
Proceeds from line of credit | £ | £ 300,000,000 | ||||
Term of debt | 7 years | 7 years |
Derivatives and Hedging Activ40
Derivatives and Hedging Activities - Summary of Cash Flow Hedges (Detail) - Cash flow hedges [Member] - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount, Derivative assets | $ 282,657 | $ 367,330 |
Notional Amount, Derivative liabilities | 236,860 | 47,447 |
Notional Amount, Total | 519,517 | 414,777 |
Fair Value, Derivative assets | 11,965 | 16,027 |
Fair Value, Derivative liabilities | (6,762) | (813) |
Fair Value, Total | 5,203 | 15,214 |
Unrealized gain (loss) on cash flow hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value, Derivative assets | 27,270 | 34,578 |
Fair Value, Derivative liabilities | (21,445) | (19,709) |
Fair Value, Total | 5,825 | 14,869 |
Net gain to be reclassified within 12 months | $ 5,951 | $ 13 |
Derivatives and Hedging Activ41
Derivatives and Hedging Activities - Schedule of Fair Value of Derivative Instruments Recognized in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Fair value of derivative assets, Gross Amounts | $ 23,010 | $ 68,900 |
Fair value of derivative assets, Gross amounts offset in the balance sheet | 0 | 0 |
Fair value of derivative assets, Net amounts | 23,010 | 68,900 |
Fair value of derivative assets, Gross amounts not offset in the balance sheet | (9,888) | (44,902) |
Fair value of derivative assets, Net | 13,122 | 23,998 |
Fair value of derivative liabilities, Gross Amounts | 19,442 | 79,925 |
Fair value of derivative liabilities, Gross amounts offset in the balance sheet | 0 | 0 |
Fair value of derivative liabilities, Net amounts | 19,442 | 79,925 |
Fair value of derivative liabilities, Gross amounts not offset in the balance sheet | (9,888) | (44,902) |
Fair value of derivative liabilities, Net | 9,554 | 35,023 |
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 | (4,850) | (9,512) |
Fair value of derivative assets, Net | (4,850) | (9,512) |
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 | (4,850) | (9,512) |
Fair value of derivative liabilities, Net | (4,850) | (9,512) |
Designated as hedging instruments [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets, Gross Amounts | 11,965 | |
Fair value of derivative assets, Gross amounts offset in the balance sheet | 0 | |
Fair value of derivative assets, Net amounts | 11,965 | |
Fair value of derivative assets, Gross amounts not offset in the balance sheet | (4,984) | |
Fair value of derivative assets, Net | 6,981 | |
Fair value of derivative liabilities, Gross Amounts | 10,325 | 813 |
Fair value of derivative liabilities, Gross amounts offset in the balance sheet | 0 | 0 |
Fair value of derivative liabilities, Net amounts | 10,325 | 813 |
Fair value of derivative liabilities, Gross amounts not offset in the balance sheet | (4,984) | (813) |
Fair value of derivative liabilities, Net | 5,341 | 0 |
Designated as hedging instruments [Member] | Foreign currency forward contracts [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative liabilities, Gross Amounts | 813 | |
Fair value of derivative liabilities, Gross amounts offset in the balance sheet | 0 | |
Fair value of derivative liabilities, Net amounts | 813 | |
Fair value of derivative liabilities, Gross amounts not offset in the balance sheet | (813) | |
Designated as hedging instruments [Member] | Foreign currency forward contracts [Member] | Cash flow hedges [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets, Gross Amounts | 11,965 | |
Fair value of derivative assets, Gross amounts offset in the balance sheet | 0 | |
Fair value of derivative assets, Net amounts | 11,965 | |
Fair value of derivative assets, Gross amounts not offset in the balance sheet | (4,984) | |
Fair value of derivative assets, Net | 6,981 | |
Fair value of derivative liabilities, Gross Amounts | 6,762 | |
Fair value of derivative liabilities, Gross amounts offset in the balance sheet | 0 | |
Fair value of derivative liabilities, Net amounts | 6,762 | |
Fair value of derivative liabilities, Gross amounts not offset in the balance sheet | (4,984) | |
Fair value of derivative liabilities, Net | 1,778 | |
Designated as hedging instruments [Member] | Foreign currency forward contracts [Member] | Net Investment Hedges [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets, Gross Amounts | 0 | |
Fair value of derivative assets, Gross amounts offset in the balance sheet | 0 | |
Fair value of derivative assets, Net amounts | 0 | |
Fair value of derivative assets, Gross amounts not offset in the balance sheet | 0 | |
Fair value of derivative assets, Net | 0 | |
Fair value of derivative liabilities, Gross Amounts | 3,563 | |
Fair value of derivative liabilities, Gross amounts offset in the balance sheet | 0 | |
Fair value of derivative liabilities, Net amounts | 3,563 | |
Fair value of derivative liabilities, Gross amounts not offset in the balance sheet | 0 | |
Fair value of derivative liabilities, Net | 3,563 | |
Designated as hedging instruments [Member] | Foreign currency forward and option contracts [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets, Gross Amounts | 16,027 | |
Fair value of derivative assets, Gross amounts offset in the balance sheet | 0 | |
Fair value of derivative assets, Net amounts | 16,027 | |
Fair value of derivative assets, Gross amounts not offset in the balance sheet | (813) | |
Fair value of derivative assets, Net | 15,214 | |
Not designated as hedging instruments [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets, Gross Amounts | 11,045 | 52,873 |
Fair value of derivative assets, Gross amounts offset in the balance sheet | 0 | 0 |
Fair value of derivative assets, Net amounts | 11,045 | 52,873 |
Fair value of derivative assets, Gross amounts not offset in the balance sheet | (54) | (34,577) |
Fair value of derivative assets, Net | 10,991 | 18,296 |
Fair value of derivative liabilities, Gross Amounts | 9,117 | 79,112 |
Fair value of derivative liabilities, Gross amounts offset in the balance sheet | 0 | 0 |
Fair value of derivative liabilities, Net amounts | 9,117 | 79,112 |
Fair value of derivative liabilities, Gross amounts not offset in the balance sheet | (54) | (34,577) |
Fair value of derivative liabilities, Net | 9,063 | 44,535 |
Not designated as hedging instruments [Member] | Foreign currency forward contracts [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets, Gross Amounts | 43,203 | |
Fair value of derivative assets, Gross amounts offset in the balance sheet | 0 | |
Fair value of derivative assets, Net amounts | 43,203 | |
Fair value of derivative assets, Gross amounts not offset in the balance sheet | (34,577) | |
Fair value of derivative assets, Net | 8,626 | |
Not designated as hedging instruments [Member] | Embedded derivatives [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets, Gross Amounts | 5,871 | 8,926 |
Fair value of derivative assets, Gross amounts offset in the balance sheet | 0 | 0 |
Fair value of derivative assets, Net amounts | 5,871 | 8,926 |
Fair value of derivative assets, Gross amounts not offset in the balance sheet | 0 | |
Fair value of derivative assets, Net | 5,871 | 8,926 |
Fair value of derivative liabilities, Gross Amounts | 4,978 | 1,772 |
Fair value of derivative liabilities, Gross amounts offset in the balance sheet | 0 | 0 |
Fair value of derivative liabilities, Net amounts | 4,978 | 1,772 |
Fair value of derivative liabilities, Gross amounts not offset in the balance sheet | 0 | |
Fair value of derivative liabilities, Net | 4,978 | 1,772 |
Not designated as hedging instruments [Member] | Economic hedges of embedded derivatives [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets, Gross Amounts | 2,035 | 744 |
Fair value of derivative assets, Gross amounts offset in the balance sheet | 0 | 0 |
Fair value of derivative assets, Net amounts | 2,035 | 744 |
Fair value of derivative assets, Gross amounts not offset in the balance sheet | (4) | |
Fair value of derivative assets, Net | 2,031 | 744 |
Fair value of derivative liabilities, Gross Amounts | 32 | 417 |
Fair value of derivative liabilities, Gross amounts offset in the balance sheet | 0 | 0 |
Fair value of derivative liabilities, Net amounts | 32 | 417 |
Fair value of derivative liabilities, Gross amounts not offset in the balance sheet | (4) | |
Fair value of derivative liabilities, Net | 28 | 417 |
Not designated as hedging instruments [Member] | Foreign currency forward and option contracts [Member] | ||
Derivative [Line Items] | ||
Fair value of derivative assets, Gross Amounts | 3,139 | |
Fair value of derivative assets, Gross amounts offset in the balance sheet | 0 | |
Fair value of derivative assets, Net amounts | 3,139 | |
Fair value of derivative assets, Gross amounts not offset in the balance sheet | (50) | |
Fair value of derivative assets, Net | 3,089 | |
Fair value of derivative liabilities, Gross Amounts | 4,107 | 76,923 |
Fair value of derivative liabilities, Gross amounts offset in the balance sheet | 0 | 0 |
Fair value of derivative liabilities, Net amounts | 4,107 | 76,923 |
Fair value of derivative liabilities, Gross amounts not offset in the balance sheet | (50) | (34,577) |
Fair value of derivative liabilities, Net | $ 4,057 | $ 42,346 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Derivative instruments | $ 23,010 | $ 68,900 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Derivative liabilities | 19,442 | 79,925 |
Fair Value, Measurements, Recurring [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Cash and cash equivalents | 396,449 | 1,139,554 |
Derivative instruments | 68,900 | |
Total financial assets | 673,091 | 2,315,197 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Derivative liabilities | 19,442 | 79,925 |
Total financial liabilities | 19,442 | 79,925 |
Fair Value, Measurements, Recurring [Member] | Money market and deposit accounts [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Financial assets | 234,119 | 1,089,284 |
Fair Value, Measurements, Recurring [Member] | Publicly traded equity securities [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Financial assets | 3,766 | 3,353 |
Fair Value, Measurements, Recurring [Member] | Certificates of deposit [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Financial assets | 15,747 | 14,106 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Cash and cash equivalents | 396,449 | 1,139,554 |
Derivative instruments | 0 | 0 |
Total financial assets | 634,334 | 2,232,191 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Derivative liabilities | 0 | 0 |
Total financial liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Money market and deposit accounts [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Financial assets | 234,119 | 1,089,284 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Publicly traded equity securities [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Financial assets | 3,766 | 3,353 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Certificates of deposit [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Financial assets | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Derivative instruments | 23,010 | 68,900 |
Total financial assets | 38,757 | 83,006 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Derivative liabilities | 19,442 | 79,925 |
Total financial liabilities | 19,442 | 79,925 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Money market and deposit accounts [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Financial assets | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Publicly traded equity securities [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Financial assets | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Certificates of deposit [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Financial assets | $ 15,747 | $ 14,106 |
Leases - Additional Information
Leases - Additional Information (Detail) - 3 months ended Mar. 31, 2016 ¥ in Thousands, $ in Thousands | JPY (¥) | USD ($) |
TY5 Tokyo [Member] | Equipment [Member] | ||
Capital Leased Assets [Line Items] | ||
Effective interest rate | 6.33% | |
Capital lease obligation | ¥ 3,074,947 | $ 27,335 |
Discontinued operations held-for-sale [Member] | Other financing obligations [Member] | ||
Capital Leased Assets [Line Items] | ||
Capital lease obligation | $ 56,989 |
Leases - Summary of Capital Lea
Leases - Summary of Capital Lease and Other Financing Obligations (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Capital lease obligations | ||
Current portion of capital lease and other financing obligations | $ (48,325) | $ (40,121) |
Capital lease and other financing obligations, less current portion | 1,552,145 | $ 1,287,139 |
Capital lease obligations [Member] | ||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2016 (9 months remaining) | 58,850 | |
2,017 | 79,509 | |
2,018 | 80,032 | |
2,019 | 80,857 | |
2,020 | 80,878 | |
Thereafter | 961,236 | |
Total minimum lease payments | 1,341,362 | |
Plus amount representing residual property value | 368 | |
Less amount representing interest | (629,395) | |
Present value of net minimum lease payments | 712,335 | |
Capital lease obligations | ||
Current portion of capital lease and other financing obligations | (23,269) | |
Capital lease and other financing obligations, less current portion | 689,066 | |
Other financing obligations [Member] | ||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2016 (9 months remaining) | 64,147 | |
2,017 | 86,216 | |
2,018 | 82,472 | |
2,019 | 77,091 | |
2,020 | 74,617 | |
Thereafter | 794,225 | |
Total minimum lease payments | 1,178,768 | |
Plus amount representing residual property value | 539,509 | |
Less amount representing interest | (830,142) | |
Present value of net minimum lease payments | 888,135 | |
Capital lease obligations | ||
Current portion of capital lease and other financing obligations | (25,056) | |
Capital lease and other financing obligations, less current portion | 863,079 | |
Capital Lease and Other Financing Obligations Total [Member] | ||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2016 (9 months remaining) | 122,997 | |
2,017 | 165,725 | |
2,018 | 162,504 | |
2,019 | 157,948 | |
2,020 | 155,495 | |
Thereafter | 1,755,461 | |
Total minimum lease payments | 2,520,130 | |
Plus amount representing residual property value | 539,877 | |
Less amount representing interest | (1,459,537) | |
Present value of net minimum lease payments | 1,600,470 | |
Capital lease obligations | ||
Current portion of capital lease and other financing obligations | (48,325) | |
Capital lease and other financing obligations, less current portion | $ 1,552,145 |
Debt Facilities - Summary of Lo
Debt Facilities - Summary of Loans Payable and Senior Notes (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Mortgage and loans payable, Gross | $ 1,640,702 | $ 1,243,699 |
Less amount representing debt discount and debt issuance cost | (15,895) | (2,681) |
Plus amount representing mortgage premium | 2,065 | 1,987 |
Mortgage and loans payable, Net | 1,626,872 | 1,243,005 |
Loans payable current and non current | ||
Less current portion | (487,065) | (770,236) |
Mortgage and loans payable noncurrent portion | 1,139,807 | 472,769 |
Term loans [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage and loans payable, Gross | 1,139,986 | 456,740 |
Bridge term loan [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage and loans payable, Gross | 422,275 | 386,547 |
Revolving credit facility borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage and loans payable, Gross | 0 | 325,622 |
Brazil financings [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage and loans payable, Gross | 28,873 | 27,113 |
Mortgage payable and other loans payable [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage and loans payable, Gross | $ 49,568 | $ 47,677 |
Debt Facilities - Additional In
Debt Facilities - Additional Information 1 (Detail) $ / shares in Units, ¥ in Millions | Jan. 08, 2016GBP (£) | Jan. 08, 2016USD ($) | Jul. 31, 2015shares | Mar. 31, 2016JPY (¥) | Mar. 31, 2016USD ($)$ / sharesshares | Mar. 31, 2015USD ($) | Jan. 08, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015$ / shares | Aug. 31, 2015$ / shares |
Debt Instrument [Line Items] | ||||||||||
Long-term debt, Gross | $ 1,640,702,000 | $ 1,243,699,000 | ||||||||
Repayment of principal balance of outstanding term loan | $ 936,353,000 | $ 13,361,000 | ||||||||
4.75% Convertible Subordinated Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Convertible debt interest rate | 4.75% | 4.75% | ||||||||
Subordinated notes converted into common stock | shares | 1,972,258 | |||||||||
Convertible debt maturity date | Jun. 15, 2016 | 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 | 1,301,644 | |||||||||
4.75% Convertible Subordinated Notes [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Conversion price per share (in dollars per share) | $ / shares | $ 84.32 | |||||||||
4.75% Convertible Subordinated Notes [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Conversion price per share (in dollars per share) | $ / shares | $ 114.82 | |||||||||
Bridge term loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from line of credit | ¥ 1,040 | $ 9,246,000 | ||||||||
Term loans [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Term of debt | 7 years | 7 years | ||||||||
Long-term debt, Gross | 1,139,986,000 | 456,740,000 | ||||||||
Term loans [Member] | USD Term B Loan Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from line of credit | $ 250,000,000 | |||||||||
Term of debt | 7 years | 7 years | ||||||||
Maximum borrowing capacity | $ 250,000,000 | |||||||||
Interest rate | 4.00% | 4.00% | ||||||||
Quarterly payment amount | $ 625,000 | |||||||||
Balloon payment due at end of term | $ 233,125,000 | |||||||||
Term loans [Member] | Sterling Term B Loan Commitment [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from line of credit | £ | £ 300,000,000 | |||||||||
Term of debt | 7 years | 7 years | ||||||||
Maximum borrowing capacity | £ | £ 300,000,000 | |||||||||
Interest rate | 4.50% | 4.50% | ||||||||
Quarterly payment amount | £ | £ 750,000 | |||||||||
Balloon payment due at end of term | £ | 279,750,000 | |||||||||
Long-term debt, Gross | £ 300,000,000 | $ 431,310,000 | ||||||||
Revolving credit facility borrowings [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt, Gross | 0 | 325,622,000 | ||||||||
Repayment of principal balance of outstanding term loan | 325,622,000 | |||||||||
Convertible Subordinated Debt [Member] | 4.75% Convertible Subordinated Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt, Gross | $ 150,082,000 | $ 150,082,000 | ||||||||
Convertible debt interest rate | 4.75% | 4.75% | ||||||||
Conversion price per share (in dollars per share) | $ / shares | $ 103.54 | $ 76.10 |
Debt Facilities - Convertible D
Debt Facilities - Convertible Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 |
Debt Instrument [Line Items] | |||
Long-term debt, Gross | $ 1,640,702 | $ 1,243,699 | |
Less amount representing debt discount and debt issuance cost | (15,895) | (2,681) | |
Long-term debt, Net | $ 5,642,849 | ||
4.75% Convertible Subordinated Notes [Member] | |||
Debt Instrument [Line Items] | |||
Convertible debt interest rate | 4.75% | 4.75% | |
Convertible Subordinated Debt [Member] | 4.75% Convertible Subordinated Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, Gross | $ 150,082 | 150,082 | |
Less amount representing debt discount and debt issuance cost | (1,800) | (3,961) | |
Long-term debt, Net | $ 148,282 | $ 146,121 | |
Convertible debt interest rate | 4.75% | 4.75% |
Debt Facilities - Summary of Se
Debt Facilities - Summary of Senior Notes (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Long-term debt, Gross | $ 1,640,702 | $ 1,243,699 |
Long-term debt, Net | 5,642,849 | |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, Gross | 3,850,000 | 3,850,000 |
Less amount representing debt issuance cost | (43,833) | (45,366) |
Long-term debt, Net | 3,806,167 | 3,804,634 |
Senior Notes [Member] | 5.375% Senior Notes Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, Gross | $ 1,000,000 | 1,000,000 |
Senior notes stated percentage | 5.375% | |
Senior Notes [Member] | 5.375% Senior Notes due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, Gross | $ 750,000 | 750,000 |
Senior notes stated percentage | 5.375% | |
Senior Notes [Member] | 4.875% Senior Notes Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, Gross | $ 500,000 | 500,000 |
Senior notes stated percentage | 4.875% | |
Senior Notes [Member] | 5.75% Senior Notes due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, Gross | $ 500,000 | 500,000 |
Senior notes stated percentage | 5.75% | |
Senior Notes [Member] | 5.875% Senior Notes Due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, Gross | $ 1,100,000 | $ 1,100,000 |
Senior notes stated percentage | 5.875% |
Debt Facilities - Summary of Ma
Debt Facilities - Summary of Maturities of Debt Facilities (Detail) $ in Thousands | Mar. 31, 2016USD ($) |
Maturities of Long-term Debt [Abstract] | |
2016 (9 months remaining) | $ 624,264 |
2,017 | 60,136 |
2,018 | 56,255 |
2,019 | 356,803 |
2,020 | 510,232 |
Thereafter | 4,035,159 |
Long-term debt, Net | $ 5,642,849 |
Debt Facilities - Fair Value of
Debt Facilities - Fair Value of Debt Facilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
Mortgage and loans payable | $ 1,624,926 | $ 916,602 |
Convertible debt | 152,896 | 151,997 |
Senior notes | 4,024,875 | 3,954,000 |
Revolving credit line | $ 0 | $ 325,617 |
Debt Facilities - Interest Char
Debt Facilities - Interest Charges (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Debt Disclosure [Abstract] | ||
Interest expense | $ 100,863 | $ 68,791 |
Interest capitalized | 2,286 | 3,203 |
Interest charges incurred | $ 103,149 | $ 71,994 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Mar. 31, 2016USD ($) |
Capital expenditures [Member] | |
Other Commitments [Line Items] | |
Purchase commitments | $ 410,664,475 |
Miscellaneous purchase commitments [Member] | |
Other Commitments [Line Items] | |
Purchase commitments | $ 442,365,296 |
Stockholders' Equity - Componen
Stockholders' Equity - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
December 31, 2015 | $ (509,059) | |
Net Change | 92,505 | $ (135,593) |
March 31, 2016 | (416,554) | |
Foreign currency translation adjustment ("CTA") gain (loss) [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
December 31, 2015 | (523,709) | |
Net Change | 115,899 | |
March 31, 2016 | (407,810) | |
Unrealized gain (loss) on cash flow hedges [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
December 31, 2015 | 11,153 | |
Net Change | (6,784) | |
March 31, 2016 | 4,369 | |
Unrealized gain (loss) on available for sale securities [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
December 31, 2015 | (139) | |
Net Change | (304) | |
March 31, 2016 | (443) | |
Net investment hedge CTA loss [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
December 31, 2015 | 4,484 | |
Net Change | (16,312) | |
March 31, 2016 | (11,828) | |
Defined benefit plans [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
December 31, 2015 | (848) | |
Net Change | 6 | |
March 31, 2016 | $ (842) |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Mar. 23, 2016 | Feb. 18, 2016 | Mar. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Quarterly cash dividend declared (in dollars per share) | $ 1.75 | ||
Total cash dividend paid | $ 121,494,000 | ||
Restricted stock units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued in period | 526,988 | ||
Weighted-average grant date fair value of shares issued (in dollars per share) | $ 290.46 | ||
Weighted average requisite service period of shares issued | 3 years 5 months 23 days | ||
Special Distribution [Member] | Restricted stock units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividends payable | $ 1,366,000 |
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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 34,515 | $ 30,613 |
Cost of revenues [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 2,997 | 2,306 |
Sales and marketing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 9,771 | 8,711 |
General and administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 21,747 | $ 19,596 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2016Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Schedule
Segment Information - Schedule of Adjusted EBITDA (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Total adjusted EBITDA | $ 380,650 | $ 305,748 |
Depreciation, amortization and accretion expense | (202,153) | (122,530) |
Stock-based compensation expense | (34,515) | (30,613) |
Acquisition costs | (36,536) | (1,156) |
Gains on asset sales | 5,242 | 0 |
Income from continuing operations | 112,688 | 151,449 |
Americas [Member] | ||
Segment Reporting Information [Line Items] | ||
Total adjusted EBITDA | 184,460 | 172,734 |
EMEA [Member] | ||
Segment Reporting Information [Line Items] | ||
Total adjusted EBITDA | 111,489 | 76,031 |
Asia-Pacific [Member] | ||
Segment Reporting Information [Line Items] | ||
Total adjusted EBITDA | $ 84,701 | $ 56,983 |
Segment Information - Segment D
Segment Information - Segment Disclosures (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 844,156 | $ 643,174 |
Total depreciation and amortization | 200,534 | 121,636 |
Capital expenditures | 197,700 | 150,120 |
Americas [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 404,394 | 363,969 |
Total depreciation and amortization | 76,259 | 66,727 |
Capital expenditures | 83,499 | 82,726 |
EMEA [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 267,856 | 164,623 |
Total depreciation and amortization | 76,050 | 26,507 |
Capital expenditures | 57,273 | 27,556 |
Asia-Pacific [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 171,906 | 114,582 |
Total depreciation and amortization | 48,225 | 28,402 |
Capital expenditures | $ 56,928 | $ 39,838 |
Segment Information - Long-Live
Segment Information - Long-Lived Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Company's long-lived assets | $ 6,888,232 | $ 5,606,436 |
Americas [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Company's long-lived assets | 3,074,737 | 3,025,450 |
EMEA [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Company's long-lived assets | 2,287,091 | 1,157,304 |
Asia-Pacific [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Company's long-lived assets | $ 1,526,404 | $ 1,423,682 |
Segment Information - Revenue I
Segment Information - Revenue Information on Services Basis (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue from External Customer [Line Items] | ||
Revenue | $ 844,156 | $ 643,174 |
Recurring Revenues [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue | 797,094 | 609,657 |
Recurring Revenues [Member] | Colocation [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue | 619,893 | 481,545 |
Recurring Revenues [Member] | Interconnection [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue | 127,205 | 101,658 |
Recurring Revenues [Member] | Managed infrastructure services [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue | 44,736 | 23,855 |
Recurring Revenues [Member] | Rental [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue | 5,260 | 2,599 |
Non-recurring Revenues [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue | $ 47,062 | $ 33,517 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | May. 04, 2016 | Feb. 18, 2016 |
Subsequent Event [Line Items] | ||
Quarterly cash dividend declared (in dollars per share) | $ 1.75 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Quarterly cash dividend declared (in dollars per share) | $ 1.75 |