Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 000-31293 | |
Entity Registrant Name | EQUINIX, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0487526 | |
Entity Address, Address Line One | One Lagoon Drive | |
Entity Address, City or Town | Redwood City | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94065 | |
City Area Code | 650 | |
Local Phone Number | 598-6000 | |
Title of 12(b) Security | Common Stock, $0.001 | |
Trading Symbol | EQIX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 85,278,859 | |
Entity Central Index Key | 0001101239 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 1,402,400 | $ 606,166 |
Short-term investments | 19,567 | 4,540 |
Accounts receivable, net of allowance for doubtful accounts of $15,300 and $15,950 | 746,571 | 630,119 |
Other current assets | 305,246 | 274,857 |
Assets held for sale | 379,473 | 0 |
Total current assets | 2,853,257 | 1,515,682 |
Property, plant and equipment, net | 11,229,197 | 11,026,020 |
Operating lease right-of-use assets | 1,483,491 | 0 |
Goodwill | 4,648,913 | 4,836,388 |
Intangible assets, net | 2,127,843 | 2,333,296 |
Other assets | 499,632 | 533,252 |
Total assets | 22,842,333 | 20,244,638 |
Current liabilities: | ||
Accounts payable and accrued expenses | 755,150 | 756,692 |
Accrued property, plant and equipment | 335,490 | 179,412 |
Current portion of operating lease liabilities | 137,002 | 0 |
Current portion of finance lease liabilities | 65,518 | 0 |
Current portion of finance lease liabilities | 77,844 | |
Current portion of mortgage and loans payable | 70,789 | 73,129 |
Current portion of senior notes | 300,466 | 300,999 |
Other current liabilities | 119,976 | 126,995 |
Liabilities held for sale | 52,092 | 0 |
Total current liabilities | 1,836,483 | 1,515,071 |
Operating lease liabilities, less current portion | 1,333,901 | 0 |
Finance lease liabilities, less current portion | 1,301,482 | 0 |
Finance lease liabilities, less current portion | 1,441,077 | |
Mortgage and loans payable, less current portion | 1,215,207 | 1,310,663 |
Senior notes, less current portion | 7,835,317 | 8,128,785 |
Other liabilities | 558,912 | 629,763 |
Total liabilities | 14,081,302 | 13,025,359 |
Commitments and contingencies (Note 10) | ||
Equinix stockholders' equity | ||
Common stock, $0.001 par value per share: 300,000,000 shares authorized; 85,671,643 issued and 85,278,859 outstanding in 2019 and 81,119,117 issued and 80,722,258 outstanding in 2018 | 86 | 81 |
Additional paid-in capital | 12,635,450 | 10,751,313 |
Treasury stock, at cost; 392,784 shares in 2019 and 396,859 shares in 2018 | (144,301) | (145,161) |
Accumulated dividends | (3,956,318) | (3,331,200) |
Accumulated other comprehensive loss | (1,040,236) | (945,702) |
Retained earnings | 1,266,430 | 889,948 |
Total Equinix stockholders' equity | 8,761,111 | 7,219,279 |
Non-controlling interests | (80) | 0 |
Total stockholders' equity | 8,761,031 | 7,219,279 |
Total liabilities and stockholders' equity | $ 22,842,333 | $ 20,244,638 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 15,300 | $ 15,950 |
Common stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 85,671,643 | 81,119,117 |
Common stock, shares outstanding (in shares) | 85,278,859 | 80,722,258 |
Treasury stock, at cost (shares) | 392,784 | 396,859 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenues | $ 1,396,810 | $ 1,283,751 | $ 4,145,005 | $ 3,761,571 |
Costs and operating expenses: | ||||
Cost of revenues | 704,339 | 660,309 | 2,084,548 | 1,934,540 |
Sales and marketing | 161,574 | 157,920 | 490,490 | 471,898 |
General and administrative | 241,812 | 206,902 | 689,514 | 620,548 |
Transaction costs | 2,991 | (1,120) | 8,236 | 33,932 |
Impairment charges | 1,189 | 0 | 16,023 | 0 |
Gain on asset sales | (463) | (6,013) | (463) | (6,013) |
Total costs and operating expenses | 1,111,442 | 1,017,998 | 3,288,348 | 3,054,905 |
Income from operations | 285,368 | 265,753 | 856,657 | 706,666 |
Interest income | 8,201 | 2,912 | 20,165 | 11,480 |
Interest expense | (118,674) | (130,566) | (362,067) | (391,516) |
Other income | 3,428 | 3,744 | 15,442 | 9,546 |
Gain (loss) on debt extinguishment | 315 | 1,492 | (67) | (39,214) |
Income before income taxes | 178,638 | 143,335 | 530,130 | 296,962 |
Income tax expense | (57,827) | (18,510) | (147,720) | (41,625) |
Net income | 120,811 | 124,825 | 382,410 | 255,337 |
Net loss attributable to non-controlling interests | 39 | 0 | 45 | 0 |
Net income attributable to Equinix | $ 120,850 | $ 124,825 | $ 382,455 | $ 255,337 |
Earnings per share (EPS) attributable to Equinix: | ||||
Basic EPS (in dollars per share) | $ 1.42 | $ 1.56 | $ 4.57 | $ 3.21 |
Weighted-average shares for basic EPS (in shares) | 85,012 | 79,872 | 83,753 | 79,533 |
Diluted EPS (in dollars per share) | $ 1.41 | $ 1.55 | $ 4.54 | $ 3.19 |
Weighted-average shares for diluted EPS (in shares) | 85,571 | 80,283 | 84,223 | 79,956 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 120,811 | $ 124,825 | $ 382,410 | $ 255,337 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment (CTA) loss, net of tax effects of $0, $(942), $(595) and $5,043 | (284,927) | (77,566) | (341,519) | (352,948) |
Net investment hedge CTA gain, net of tax effect of $0, $0, $10 and $1,637 | 188,897 | 27,214 | 227,890 | 180,694 |
Unrealized gain on cash flow hedges, net of tax effects of $(5,245), $(2,061), $(7,336) and $(12,459) | 14,217 | 19,086 | ||
Unrealized gain on cash flow hedges, net of tax effects of $(5,245), $(2,061), $(7,336) and $(12,459) | 6,184 | 37,384 | ||
Net actuarial gain (loss) on defined benefit plans, net of tax effects of $2, $(4), $3 and $(14) | (8) | 14 | (26) | 35 |
Total other comprehensive loss, net of tax | (81,821) | (44,154) | (94,569) | (134,835) |
Comprehensive income, net of tax | 38,990 | 80,671 | 287,841 | 120,502 |
Net loss attributable to non-controlling interests | 39 | 0 | 45 | 0 |
Other comprehensive loss attributable to non-controlling interests | 28 | 0 | 35 | 0 |
Comprehensive income attributable to Equinix | $ 39,057 | $ 80,671 | $ 287,921 | $ 120,502 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustment (CTA) gain (loss), tax | $ 0 | $ (942) | $ (595) | $ 5,043 |
Net investment hedge CTA gain (loss), tax | 0 | 0 | 10 | 1,637 |
Unrealized gain (loss) on cash flow hedges, tax | (5,245) | (7,336) | ||
Unrealized gain (loss) on cash flow hedges, tax | (2,061) | (12,459) | ||
Net actuarial gain on defined benefit plans, tax | $ 2 | $ (4) | $ 3 | $ (14) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 382,410 | $ 255,337 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 806,704 | 767,182 |
Stock-based compensation | 174,413 | 139,849 |
Amortization of intangible assets | 147,589 | 153,443 |
Amortization of debt issuance costs and debt discounts and premiums | 9,429 | 10,609 |
Provision for allowance for doubtful accounts | 8,588 | 4,886 |
Impairment charges | 16,023 | 0 |
Gain on asset sales | (463) | (6,013) |
Loss on debt extinguishment | 67 | 39,214 |
Other items | 9,909 | 13,040 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (123,389) | (85,126) |
Income taxes, net | 73,144 | (32,876) |
Other assets | (62,036) | (22,409) |
Operating lease right-of-use assets | 108,226 | |
Operating lease liabilities | (112,059) | |
Accounts payable and accrued expenses | 6,660 | 4,782 |
Other liabilities | 17,843 | 14,879 |
Net cash provided by operating activities | 1,463,058 | 1,256,797 |
Cash flows from investing activities: | ||
Purchases of investments | (23,692) | (55,181) |
Sales of investments | 8,945 | 74,376 |
Business acquisitions, net of cash and restricted cash acquired | (34,143) | (829,185) |
Purchases of real estate | (64,288) | (136,612) |
Purchases of other property, plant and equipment | (1,364,960) | (1,415,509) |
Proceeds from sale of assets, net of cash transferred | 117 | 12,154 |
Net cash used in investing activities | (1,478,021) | (2,349,957) |
Cash flows from financing activities: | ||
Proceeds from employee equity awards | 52,018 | 50,103 |
Payment of dividends and special distribution | (625,804) | (554,742) |
Proceeds from public offering of common stock, net of issuance costs | 1,660,976 | 273,873 |
Proceeds from senior notes | 0 | 929,850 |
Proceeds from loans payable | 0 | 424,650 |
Repayments of finance lease liabilities | (62,785) | |
Repayments of finance lease liabilities | (89,655) | |
Repayments of mortgage and loans payable | (53,796) | (429,498) |
Repayment of senior notes | (150,000) | 0 |
Debt extinguishment costs | 0 | (20,556) |
Debt issuance costs | 0 | (12,218) |
Net cash provided by financing activities | 820,609 | 571,807 |
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash | (13,117) | (30,944) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 792,529 | (552,297) |
Cash, cash equivalents and restricted cash at beginning of period | 627,604 | 1,450,701 |
Cash, cash equivalents and restricted cash at end of period | 1,420,133 | 898,404 |
Cash and cash equivalents | 1,402,400 | 870,486 |
Current portion of restricted cash included in other current assets | 7,988 | 17,287 |
Non-current portion of restricted cash included in other assets | $ 9,745 | $ 10,631 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
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, 2018 has been derived from audited consolidated financial statements as of that date. The condensed 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 ("U.S. 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 22, 2019. 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 Switch Datacenters' AMS1 data center business in Amsterdam, Netherlands from April 18, 2019, Metronode from April 18, 2018 and Infomart Dallas from April 2, 2018. All intercompany accounts and transactions have been eliminated in consolidation. Derivatives and Hedging Activities The Company uses derivative instruments, including foreign currency forwards and options and cross-currency interest rate swaps, to manage certain foreign currency exposures. Derivative instruments are viewed as risk management tools by the Company and are not used for speculative purposes. The Company recognizes all derivatives on the Company's condensed consolidated balance sheets at fair value. The accounting for changes in the value of a derivative depends on whether the contract qualifies and has been designated for hedge accounting. In order to qualify for hedge accounting, a derivative must be considered highly effective at reducing the risk associated with the exposure being hedged and there must be documentation of the risk management objective and strategy, including identification of the hedging instrument, the hedged item and the risk exposure, and the effectiveness assessment methodology. For cash flow hedges, the Company uses regression analysis at the time they are designated to assess their effectiveness. Hedge designations are reviewed on a quarterly basis to assess whether circumstances have changed that would disrupt the hedge instrument's relationship to the forecasted transactions or net investment. The Company uses the forward method to assess effectiveness of qualifying foreign currency forwards that are designated as cash flow hedges, whereby, the change in the fair value of the derivative is recorded in other comprehensive income (loss) and reclassified to the same line item in the condensed consolidated statement of operations that is used to present the earnings effect of the hedged item when the hedged item affects earnings. The Company uses the spot method to assess effectiveness of qualifying foreign currency exchange options that are designated as cash flow hedges, whereby, the change in fair value due to foreign currency exchange spot rates is recorded in other comprehensive income (loss) and reclassified to the same line item in the condensed consolidated statement of operations that is used to present the earnings effect of the hedged item when the hedged item affects earnings, and the change in fair value of the excluded component is recorded in other comprehensive income (loss) and amortized on a straight-line basis to the same line item in the condensed consolidated statement of operations that is used to present the earnings effect of the hedged item. When two or more derivative instruments in combination are jointly designated as a cash flow hedging instrument, as with foreign currency exchange option collars, they are treated as a single instrument. If the hedge relationship is terminated for any derivatives designated as cash flow hedges, then the change in fair value of the derivative recorded in other comprehensive income (loss) is recognized in earnings when the previously hedged item affects earnings, consistent with the original hedge strategy. For hedge relationships discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related derivative amounts recorded in other comprehensive income (loss) are immediately recognized in earnings. The Company uses the spot method to assess effectiveness of cross-currency interest rate swaps that are designated as net investment hedges, whereby, the change in fair value due to foreign currency exchange spot rates is recorded in other comprehensive income (loss) and the change in fair value of the excluded component is recorded in other comprehensive income (loss) and amortized to interest expense on a straight-line basis. From time to time, the Company also uses foreign exchange forward contracts to hedge against the effect of foreign exchange rate fluctuations on a portion of its net investment in the foreign subsidiaries. The Company uses the spot method to assess effectiveness of qualifying foreign currency forwards that are designated as net investment hedges, whereby, the change in fair value due to foreign currency exchange spot rates is recorded in other comprehensive income (loss) and the change in fair value of the excluded component is recorded in other comprehensive income (loss) and amortized to interest expense on a straight-line basis. Foreign currency gains or losses associated with derivatives that are not designated as hedging instruments for accounting purposes are recorded within other income (expense) in the Company's condensed consolidated statements of operations, with the exception of (i) foreign currency embedded derivatives contained in certain of the Company's customer contracts and (ii) foreign exchange forward contracts that are entered into to hedge the accounting impact of the foreign currency embedded derivatives, which are recorded within revenues in the Company's condensed consolidated statements of operations. For further information on derivatives and hedging activities, see Note 6 below. Income Taxes The Company elected to be taxed as a real estate investment trust for federal income tax purposes ("REIT") beginning with its 2015 taxable year. As a result, the Company may deduct the distributions made to its stockholders from taxable income generated by the Company and its qualified REIT subsidiaries ("QRSs"). The Company's dividends paid deduction generally eliminates the U.S. taxable income of the Company and its QRSs, resulting in no U.S. income tax due. However, the Company's taxable REIT subsidiaries ("TRSs") 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 QRSs or TRSs. 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 27.9% and 14.0% for the nine months ended September 30, 2019 and 2018 , respectively. The increase in the effective tax rate for the nine months ended September 30, 2019 as compared to the same period in 2018 is primarily due to a release of valuation allowance as a result of a legal entity reorganization in the Company's Americas region during the nine months ended September 30, 2018 . Assets Held for Sale 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. For further information on assets held for sale, see Note 5 below. Recent Accounting Pronouncements Accounting Standards Not Yet Adopted In June 2016, Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization's portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted for all organizations for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company will adopt this new ASU on January 1, 2020. The Company expects this ASU to impact its accounting for allowances for doubtful accounts and is currently evaluating the extent of the impact that the adoption of this standard will have on its condensed consolidated financial statements. Accounting Standards Adopted In August 2017, FASB issued ASU 2017-12 Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This ASU was issued to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements and to simplify the application of the hedge accounting guidance in current GAAP. This ASU permits hedge accounting for risk components involving nonfinancial risk and interest rate risk, requires an entity to present the earnings effect of the hedging instrument in the same income statement line item in which the hedged item is reported, no longer requires separate measurement and reporting of hedge ineffectiveness, eases the requirement for hedge effectiveness assessment, and requires a tabular disclosure related to the effect on the income statement of fair value and cash flow hedges. This ASU is effective for annual or any interim reporting periods beginning after December 15, 2018 with early adoption permitted. The Company adopted ASU 2017-12 on January 1, 2019 using the modified retrospective approach. For cash flow hedges existing on the date of adoption, the Company recognized the cumulative effect of the change on the opening balance of accumulated other comprehensive income (loss) with a corresponding adjustment to the opening balance of retained earnings for amounts previously recognized in earnings related to ineffectiveness. The adoption of this standard did not have a material impact on the Company's condensed consolidated financial statements. In February 2016, FASB issued ASU 2016-02, Leases and issued subsequent amendments to the initial guidance, collectively referred to as "Topic 842." Topic 842 replaces the guidance in former ASC Topic 840, Leases. The new lease guidance increases transparency and comparability among organizations by requiring the recognition of 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 future obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use ("ROU") 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. Topic 842 allows entities to adopt with one of two methods: the modified retrospective transition method or the alternative transition method. On January 1, 2019, the Company adopted Topic 842 using the alternative transition method. Therefore, results for reporting periods beginning after January 1, 2019 are presented under Topic 842, while comparative information has not been restated and continues to be reported under accounting standards in effect for those periods. The Company recognized the cumulative effects of initially applying the standard as an adjustment to the opening balance of retained earnings in the period of adoption. In adopting the new guidance, the Company elected to apply the package of practical expedients permitted under the transition guidance which allows the Company not to reassess (1) whether any expired or existing contracts contain leases under the new definition of a lease; (2) lease classification for any expired or existing leases; and (3) whether previously capitalized initial direct costs would qualify for capitalization under Topic 842. The Company also elected to apply the land easements practical expedient which permits the Company not to assess at transition whether any expired or existing land easements are, or contain, leases if they were not previously accounted for as leases under Topic 840. Upon adoption of Topic 842, the Company also elected to adopt the practical expedient which allows the Company to combine qualified non-lease and lease components by underlying class of asset based, on predominance, as a lessor. Occasionally, the Company enters into revenue contracts with customers for data center and office spaces, which contain both lease and non-lease components. In general, lease and non-lease components related to the use of space and solutions provided in a data center, which share the same pattern of transfer, will be combined and accounted for under ASC 606, Revenue from Contracts with Customers. Lease and non-lease components related to the use of office space, which share the same pattern of transfer, will be combined and accounted for under Topic 842. Lease components which are not classified as operating leases do not qualify for the practical expedient. Non-lease components, which do not have similar patterns of transfers, such as professional services and goods for resale, are also excluded from combination. Adoption of the standard had a significant impact on the Company's financial results, including the (1) recognition of new ROU assets and liabilities on its balance sheet for all operating leases; and (2) de-recognition of existing build-to-suit assets and liabilities with cumulative effects of initially applying the standard as an adjustment to the retained earnings. The cumulative effect of the changes made to its consolidated January 1, 2019 balance sheet from the adoption of Topic 842 was as follows (in thousands): Balance Sheet Balances at December 31, 2018 Adjustments due to adoption of Topic 842 Balances at January 1, 2019 Assets Other current assets $ 274,857 $ (15,949 ) $ 258,908 Property, plant and equipment, net 11,026,020 (293,111 ) 10,732,909 Operating lease right-of-use assets — 1,468,762 1,468,762 Intangible assets, net 2,333,296 (23,205 ) 2,310,091 Other assets 533,252 (63,468 ) 469,784 Liabilities Current portion of operating lease liabilities — 144,405 144,405 Current portion of finance lease liabilities — 70,795 70,795 Current portion of capital lease and other financing obligations 77,844 (77,844 ) — Other current liabilities 126,995 (6,455 ) 120,540 Operating lease liabilities, less current portion — 1,312,262 1,312,262 Finance lease liabilities, less current portion — 1,165,188 1,165,188 Capital lease and other financing obligations, less current portion 1,441,077 (1,441,077 ) — Other liabilities 629,763 (88,272 ) 541,491 Equity Retained Earnings 889,948 (5,973 ) 883,975 |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Contract Balances The following table summarizes the opening and closing balances of the Company's accounts receivable, net; contract asset, current; contract asset, non-current; deferred revenue, current; and deferred revenue, non-current (in thousands): Accounts receivable, net Contract asset, current Contract asset, non-current Deferred revenue, current Deferred revenue, non-current Beginning balances as of January 1, 2019 $ 630,119 $ 9,778 $ 16,396 $ 73,142 $ 46,641 Closing balances as of September 30, 2019 746,571 9,491 25,685 76,892 46,798 Increase/(decrease) $ 116,452 $ (287 ) $ 9,289 $ 3,750 $ 157 The difference between the opening and closing balances of the Company's accounts receivable, net, contract assets and deferred revenues primarily results from revenue growth and the timing difference between the satisfaction of the Company's performance obligation and the customer's payment. The amounts of revenue recognized during the nine months ended September 30, 2019 from the opening deferred revenue balance as of January 1, 2019 was $76.1 million . Remaining performance obligations As of September 30, 2019 , approximately $7.4 billion of total revenues and deferred installation revenues are expected to be recognized in future periods, the majority of which will be recognized over the next 24 months . While initial contract terms vary in length, substantially all contracts thereafter automatically renew in one-year increments. Included in the remaining performance obligations is either 1) remaining performance obligations under the initial contract terms or 2) remaining performance obligations related to contracts in the renewal period once the initial terms have lapsed. The remaining performance obligations do not include variable consideration related to unsatisfied performance obligations such as the usage of metered power or any contracts that could be terminated without any significant penalties such as the majority of interconnection revenues. The remaining performance obligations above include revenues to be recognized in the future related to arrangements where the Company is considered the lessor. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
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 Nine Months Ended 2019 2018 2019 2018 Net income $ 120,811 $ 124,825 $ 382,410 $ 255,337 Net loss attributable to non-controlling interests 39 — 45 — Net income attributable to Equinix $ 120,850 $ 124,825 $ 382,455 $ 255,337 Weighted-average shares used to calculate basic EPS 85,012 79,872 83,753 79,533 Effect of dilutive securities: Employee equity awards 559 411 470 423 Weighted-average shares used to calculate diluted EPS 85,571 80,283 84,223 79,956 EPS attributable to Equinix: Basic EPS $ 1.42 $ 1.56 $ 4.57 $ 3.21 Diluted EPS $ 1.41 $ 1.55 $ 4.54 $ 3.19 The Company has excluded common stock related to employee equity awards in the diluted EPS calculation above of approximately 17,000 shares and 290,000 shares for the three months ended September 30, 2019 and 2018 , respectively, and approximately 22,000 and 248,000 shares for the nine months ended September 30, 2019 and 2018 , respectively, because their effect would be anti-dilutive. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions 2019 Acquisition On April 18, 2019, the Company completed the acquisition of Switch Datacenters' AMS1 data center business in Amsterdam, Netherlands, for a cash purchase price of approximately €30.6 million or approximately $34.3 million , at the exchange rate in effect on April 18, 2019. As of September 30, 2019, the Company had completed the detailed valuation analysis to derive the fair value of assets acquired and liabilities assumed and updated the final allocation of purchase price. The operating results of the acquisition are reported in the EMEA region following the date of acquisition and are not significant to the Company's total operations for the nine months ended September 30, 2019 . 2018 Acquisitions On April 18, 2018, the Company acquired all of the equity interests in Metronode from the Ontario Teachers' Pension Plan Board for a cash purchase price of A$1.034 billion or approximately $804.6 million at the exchange rate in effect on April 18, 2018 (the "Metronode Acquisition"). Metronode operated 10 data centers in six metro areas in Australia. The acquisition supports the Company's ongoing global expansion to meet customer demand in the Asia-Pacific region. On April 2, 2018, the Company completed the acquisition of Infomart Dallas, including its operations and tenants, from ASB Real Estate Investments (the "Infomart Dallas Acquisition"), for total consideration of approximately $804.0 million . The consideration was comprised of approximately $45.8 million in cash, subject to customary adjustments, and $758.2 million aggregate fair value of 5.000% senior unsecured notes (see Note 9). Prior to the acquisition, a portion of the building was leased to the Company and was being used as its Dallas 1, 2, 3 and 6 data centers, which were all accounted for as build-to-suit leases. Upon acquisition, the Company effectively terminated the leases and settled the related financing obligations and other liabilities related to the leases for approximately $170.3 million and $1.9 million , respectively, and recognized a loss on debt extinguishment of $19.5 million . The acquisition of this highly interconnected facility and tenants adds to the Company's global platform and supports the ability to further expand in the Americas market in the future. Both acquisitions constitute a business under the accounting standard for business combinations and, therefore, were accounted for as business combinations using the acquisition method of accounting. Under the acquisition method of accounting, the total purchase price is allocated to the assets acquired and liabilities assumed measured at fair value on the date of acquisition. During the three months ended March 31, 2019, the Company completed the detailed valuation analysis of Metronode and Infomart Dallas to derive the fair value of assets acquired and liabilities assumed and finalized the allocation of purchase price for Metronode and Infomart Dallas. For the Metronode Acquisition, the adjustments made during the three months ended March 31, 2019 primarily resulted in a decrease in deferred tax liability and goodwill of $4.2 million and $3.7 million , respectively. No purchase price allocation adjustments were made during the three months ended March 31, 2019 for the Infomart Dallas Acquisition. For the Metronode Acquisition, the adjustments made from the provisional amounts reported as of June 30, 2018 primarily resulted in a decrease in property, plant and equipment, other assets, other liabilities and deferred tax assets of $10.1 million , $10.0 million , $9.7 million and $4.1 million , respectively, and an increase in goodwill, intangible assets and deferred tax liabilities of $41.6 million , $4.8 million and $31.3 million , respectively. The adjustments for the Infomart Dallas Acquisition made from the provisional amounts reported as of June 30, 2018 primarily resulted in a decrease in goodwill of $6.2 million and an increase in intangible assets of $4.6 million . The changes in fair value of acquired assets and liabilities assumed did not have a significant impact on the Company's results of operations for any reporting periods prior to March 31, 2019. A summary of the final allocation of total purchase consideration is presented as follows (in thousands): Metronode Infomart Dallas Cash and cash equivalents $ 3,206 $ 17,432 Accounts receivable 8,318 637 Other current assets 9,421 395 Property, plant, and equipment 297,092 362,023 Intangible assets 128,229 65,847 Goodwill 410,188 197,378 Other assets (1) 44,373 — Total assets acquired 900,827 643,712 Accounts payable and accrued liabilities (17,104 ) (5,056 ) Other current liabilities (2,038 ) (2,141 ) Deferred tax liabilities (31,281 ) — Other liabilities (1) (45,851 ) (4,723 ) Net assets acquired $ 804,553 $ 631,792 (1) In connection with the Metronode Acquisition, the Company recorded indemnification assets of $44.4 million , which represented the seller's obligation under the purchase agreement to reimburse pre-acquisition tax liabilities settled after the acquisition. The following table presents certain information on the acquired intangible assets (in thousands): Intangible Assets Fair Value Estimated Useful Lives (Years) Weighted-average Estimated Useful Lives (Years) Customer relationships (Metronode) $ 128,229 20.0 20.0 Customer relationships (Infomart Dallas) 35,860 20.0 20.0 In-place leases (Infomart Dallas) 19,960 3.6 - 7.5 6.8 Trade names (Infomart Dallas) 9,552 20.0 20.0 Favorable leases (Infomart Dallas) 475 3.6 - 7.5 7.0 The fair value of customer relationships was estimated by applying an income approach, by calculating the present value of estimated future operating cash flows generated from existing customers less costs to realize the revenue. The Company applied discount rates of 7.3% for Metronode and 8.2% for Infomart Dallas, which reflected the nature of the assets as they relate to the risk and uncertainty of the estimated future operating cash flows. Other assumptions used to estimate the fair value of customer relationships included projected revenue growth, probability of renewal, customer attrition rates and operating margins. The fair value of Infomart Dallas' trade name was estimated using the relief from royalty approach. The Company applied a relief from royalty rate of 1.5% and a discount rate of 8.2% . The fair value of in-place leases was estimated by projecting the avoided costs, such as the cost of originating the acquired in-place leases, during a typical lease up period. 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 property, plant and equipment was estimated by applying the cost approach, with the exception of land, which was estimated by applying the market approach, for the Metronode Acquisition. For the Infomart Dallas Acquisition, the fair values of land, building and personal property were estimated by applying the market approach, residual income method and cost approach, respectively. The cost approach uses 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 for which the asset could be replaced or reproduced. The key assumptions of the cost approach include replacement cost new, physical deterioration, functional and economic obsolescence, economic useful life, remaining useful life, age and effective age. The residual income method estimates the fair value of the Infomart Dallas building using an income approach less the fair values attributed to land, personal property, in-place leases and favorable and unfavorable leases. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and liabilities assumed. Goodwill is attributable to the workforce of the acquired business and the projected revenue increase expected to arise from future customers after the Metronode and Infomart Dallas acquisitions. Goodwill from the acquisition of Metronode is not amortizable for local tax purposes and is attributable to the Company's Asia-Pacific region. Goodwill from the acquisition of Infomart Dallas is deductible for local tax purposes and is attributable to the Company's Americas region. Operating results of Metronode and Infomart Dallas have been reported in the Asia-Pacific and Americas regions, respectively. For the three months ended September 30, 2018, the Company's results of operations include $28.1 million of revenues and insignificant net income from operations from the combined operations of Metronode and Infomart Dallas. For the nine months ended September 30, 2018, the Company's results of operations include $52.1 million of revenues and $2.7 million of net income from operations from the combined operations of Metronode and Infomart Dallas. |
Assets Held for Sale
Assets Held for Sale | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale | Assets Held for Sale In June 2019, the Company entered into an agreement to form a joint venture in the form of a limited liability partnership with GIC, Singapore's sovereign wealth fund (the "Joint Venture"), to develop and operate xScale™ data centers in Europe. Under the terms of the agreement, the Company would own a 20% interest and GIC would own an 80% interest in the Joint Venture. The Company agreed to sell both its London 10 and Paris 8 data centers, and certain construction development and leases in London and Frankfurt to the Joint Venture. The assets and liabilities of these data centers and facilities, which are currently included within the Company's EMEA operating segment, were classified as held for sale as of September 30, 2019 . For further information on the Joint Venture, see Note 13 below. In January 2019, the Company entered into an agreement to sell its New York 12 ("NY12") data center. The assets of the NY12 data center to be divested were classified as held for sale. During the nine months ended September 30, 2019, the Company recorded an impairment charge of $16.0 million , reducing the carrying value of NY12 assets to the estimated fair value less cost to sell. The transaction closed in October 2019. The following table summarizes the assets and liabilities that were classified as assets and liabilities held for sale in the condensed consolidated balance sheet as of September 30, 2019 (in thousands): Other current assets $ 575 Property, plant and equipment 297,780 Operating lease right-of-use assets 9,187 Goodwill 67,950 Intangible assets 2,286 Deferred tax assets 1,571 Other assets 124 Total assets held for sale $ 379,473 Current portion of operating lease liabilities $ 754 Current portion of finance lease liabilities 167 Operating lease liabilities, less current portion 8,718 Finance lease liabilities, less current portion 41,099 Deferred tax liabilities 386 Other liabilities 968 Total liabilities held for sale $ 52,092 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 9 Months Ended |
Sep. 30, 2019 | |
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 on the value of investments in its foreign subsidiaries whose functional currencies are other than the U.S. Dollar. In order to mitigate the impact of foreign currency exchange rates, the Company has entered into various foreign currency debt obligations, which are designated as hedges against the Company's net investments in foreign subsidiaries. As of September 30, 2019 and December 31, 2018 , the total principal amounts of foreign currency debt obligations designated as net investment hedges were $3,961.7 million and $4,139.8 million , respectively. The Company also uses cross-currency interest rate swaps to hedge a portion of its net investment in its European operations. As of September 30, 2019 , U.S. Dollar to Euro cross-currency interest rate swap contracts with a total notional amount of $750.0 million were outstanding, with maturity dates in April 2022, January 2024 and January 2025. At maturity of each outstanding contract, the Company will receive U.S. Dollars from and pay Euros to the contract counterparty. During the term of each contract, the Company receives interest payments in U.S. Dollars and makes interest payments in Euros based on a notional amount and fixed interest rates determined at contract inception. The Company did not have any cross-currency interest rate swaps outstanding as of December 31, 2018 . The effect of net investment hedges on accumulated other comprehensive income and the condensed consolidated statements of operations for the three and nine months ended September 30, 2019 and 2018 was as follows (in thousands): Amount of gain or (loss) recognized in accumulated other comprehensive income: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Foreign currency debt $ 151,825 $ 27,213 $ 181,431 $ 179,056 Cross-currency interest rate swaps (included component) (1) 30,505 — 36,331 — Cross-currency interest rate swaps (excluded component) (2) 6,566 — 10,117 — Total $ 188,896 $ 27,213 $ 227,879 $ 179,056 Amount of gain or (loss) recognized in earnings: Location of gain or (loss) Three Months Ended Nine Months Ended 2019 2018 2019 2018 Cross-currency interest rate swaps (excluded component) (2) Interest expense $ 5,072 $ — $ 14,163 $ — Total $ 5,072 $ — $ 14,163 $ — (1) Included component represents foreign exchange spot rates. (2) Excluded component represents cross-currency basis spread and interest rates. Cash Flow Hedges . The Company hedges its foreign currency translation exposure for forecasted revenues and expenses in its EMEA region between the U.S. Dollar and the British Pound, Euro, Swedish Krona and Swiss Franc. The foreign currency forward and option contracts that the Company uses to hedge this exposure are designated as cash flow hedges. As of September 30, 2019 and December 31, 2018 , the total notional amounts of these foreign exchange contracts were $848.6 million and $760.9 million , respectively. The Company enters into intercompany hedging instruments ("intercompany derivatives") with wholly-owned subsidiaries of the Company in order to hedge certain forecasted revenues and expenses denominated in currencies other than the U.S. Dollar. Simultaneously, the Company enters into derivative contracts with unrelated third parties to externally hedge the net exposure created by such intercompany derivatives. The effect of cash flow hedges on accumulated other comprehensive income and the condensed consolidated statements of operations for the three and nine months ended September 30, 2019 and 2018 was as follows (in thousands): Amount of gain or (loss) recognized in accumulated other comprehensive income: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Foreign currency forward and option contracts (included component) (1) $ 20,979 $ 8,246 $ 29,345 $ 49,836 Foreign currency option contracts (excluded component) (2) (1,518 ) — (2,923 ) — Total $ 19,461 $ 8,246 $ 26,422 $ 49,836 Amount of gain or (loss) reclassified from accumulated other comprehensive income to income: Three Months Ended Nine Months Ended Location of gain or (loss) 2019 2018 2019 2018 Foreign currency forward contracts Revenues $ 27,843 $ (3,294 ) $ 56,388 $ (34,613 ) Foreign currency forward contracts Costs and operating expenses (14,474 ) 1,441 (29,548 ) 17,542 Total $ 13,369 $ (1,853 ) $ 26,840 $ (17,071 ) Amount of gain or (loss) excluded from effectiveness testing included in income: Three Months Ended Nine Months Ended Location of gain or (loss) 2019 2018 2019 2018 Foreign currency forward contracts Other income (expense) $ — $ 3,860 $ 88 $ 10,290 Foreign currency option contracts (excluded component) (2) Revenues (538 ) — (555 ) — Total $ (538 ) $ 3,860 $ (467 ) $ 10,290 (1) Included component represents foreign exchange spot rates. (2) Excluded component represents option's time value. As of September 30, 2019 , the Company's cash flow hedge instruments had maturity dates ranging from October 2019 to September 2021 and the Company recorded a net gain of $43.0 million within accumulated other comprehensive income (loss) relating to cash flow hedges that will be reclassified to revenues and expenses as they mature in the next 12 months. As of December 31, 2018, the Company's cash flow hedge instruments had maturity dates ranging from January 2019 to December 2020 and the Company recorded a net gain of $21.4 million within accumulated other comprehensive income (loss) relating to cash flow hedges that will be reclassified to revenues and expenses as they mature in the next 12 months. 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 U.S. Dollars. 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. Foreign Currency Forward Contracts . The Company also uses foreign currency forward contracts to manage the foreign exchange risk associated with certain foreign currency-denominated monetary assets and liabilities. As a result of foreign currency fluctuations, the U.S. Dollar equivalent values of its foreign currency-denominated monetary assets and liabilities change. Gains and losses on these contracts are included in other income (expense), on a net basis, along with the foreign currency gains and losses of the related foreign currency-denominated monetary assets and liabilities associated with these foreign currency forward contracts. As of September 30, 2019 and December 31, 2018 , the total notional amounts of these foreign currency contracts were $1,950.6 million and $1,500.4 million , respectively. The following table presents the effect of derivatives not designated as hedging instruments in the Company's condensed consolidated statements of operations (in thousands): Amount of gain or (loss) recognized in earnings: Three Months Ended Nine Months Ended Location of gain or (loss) 2019 2018 2019 2018 Embedded derivatives Revenues $ 2,830 $ 742 $ 3,552 $ 2,206 Economic hedge of embedded derivatives Revenues (3,221 ) (422 ) (2,680 ) (1,360 ) Foreign currency forward contracts Other income (expense) 77,644 17,061 96,143 60,737 Total $ 77,253 $ 17,381 $ 97,015 $ 61,583 Fair Value of Derivative Instruments The following table presents the fair value of derivative instruments recognized in the Company's condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 December 31, 2018 Assets (1) Liabilities (2) Assets (1) Liabilities (2) Designated as hedging instruments: Cash flow hedges Foreign currency forward and option contracts $ 59,401 $ — $ 38,606 $ 865 Net investment hedges Cross-currency interest rate swaps 46,449 — — — Total designated as hedging 105,850 — 38,606 865 Not designated as hedging instruments: Embedded derivatives 7,131 1,336 4,656 2,426 Economic hedges of embedded derivatives 492 697 525 180 Foreign currency forward contracts 28,778 3 29,287 6,269 Total not designated as hedging 36,401 2,036 34,468 8,875 Total Derivatives $ 142,251 $ 2,036 $ 73,074 $ 9,740 (1) As presented in the Company's condensed consolidated balance sheets within other current assets and other assets. (2) As presented in the Company's condensed consolidated balance sheets within other current liabilities and other liabilities. Offsetting Derivative Assets and Liabilities The Company presents its derivative instruments and the accrued interest related to cross-currency interest rate swaps at gross fair values in the condensed consolidated balance sheets. 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. For presentation on the condensed consolidated balance sheets, the Company does not offset fair value amounts recognized for derivative instruments or the accrued interest related to cross-currency interest rate swaps under master netting arrangements. The following table presents information related to these offsetting arrangements as of September 30, 2019 and December 31, 2018 (in thousands): Gross Amounts Offset in Consolidated Balance Sheet Gross Amounts Gross Amounts Offset in the Balance Sheet Net Amounts Gross Amounts not Offset in the Balance Sheet Net September 30, 2019 Derivative assets $ 154,394 $ — $ 154,394 $ (6,307 ) $ 148,087 Derivative liabilities 8,203 — 8,203 (6,307 ) 1,896 December 31, 2018 Derivative assets $ 73,074 $ — $ 73,074 $ (6,517 ) $ 66,557 Derivative liabilities 9,740 — 9,740 (6,517 ) 3,223 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value estimates are made as of a specific point in time based on methods using the market approach valuation method which uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities or other valuation techniques. These techniques involve uncertainties and are affected by the assumptions used and the judgments made regarding risk characteristics of various financial instruments, discount rates, estimates of future cash flows, future expected loss experience and other factors. Cash, Cash Equivalents and Investments. The fair value of the Company's investments in money market funds approximates their face value. Such instruments are included in cash equivalents. The Company's money market funds and publicly traded equity securities are classified within Level 1 of the fair value hierarchy because they are valued using quoted prices for identical instruments in active markets. The fair value of the Company's other investments, including certificates of deposit, approximates their face value. The fair value of these investments is priced based on the quoted market price for similar instruments or nonbinding market prices that are corroborated by observable market data. Such instruments are classified within Level 2 of the fair value hierarchy. The Company determines the fair values of its Level 2 investments by using inputs such as actual trade data, benchmark yields, broker/dealer quotes, and other similar data, which are obtained from quoted market prices, custody bank, third-party pricing vendors, or other sources. The Company uses such pricing data as the primary input to make its assessments and determinations as to the ultimate valuation of its investment portfolio and has not made, during the periods presented, any material adjustments to such inputs. The Company is responsible for its condensed consolidated financial statements and underlying estimates. The Company uses the specific identification method in computing realized gains and losses. Realized gains and losses on the investments are included within other income (expense) in the Company's condensed consolidated statements of operations. Publicly traded equity securities are measured at fair value with changes in the fair values recognized within other income (expense) in the Company's condensed consolidated statements of operations. Derivative Assets and Liabilities . For derivatives, the Company uses forward contract and option models employing market observable inputs, such as spot currency rates and forward points with adjustments made to these values utilizing published credit default swap rates of its foreign exchange trading counterparties and other comparable companies. The Company has determined that the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, therefore the derivatives are categorized as Level 2. The Company did not have any nonfinancial assets or liabilities measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018 . The Company's financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 were as follows (in thousands): Fair Value at Fair Value Measurement Using Level 1 Level 2 Assets: Cash $ 832,235 $ 832,235 $ — Money market and deposit accounts 570,165 570,165 — Publicly traded equity securities 2,647 2,647 — Certificates of deposit 16,920 — 16,920 Derivative instruments (1) 142,251 — 142,251 Total $ 1,564,218 $ 1,405,047 $ 159,171 Liabilities: Derivative instruments (1) $ 2,036 $ — $ 2,036 (1) 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, 2018 were as follows (in thousands): Fair Value at Fair Value Measurement Using Level 1 Level 2 Assets: Cash $ 486,648 $ 486,648 $ — Money market and deposit accounts 119,518 119,518 — Publicly traded equity securities 1,717 1,717 — Certificates of deposit 2,823 — 2,823 Derivative instruments (1) 73,074 — 73,074 Total $ 683,780 $ 607,883 $ 75,897 Liabilities: Derivative instruments (1) $ 9,740 $ — $ 9,740 (1) 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 Level 3 financial assets or financial liabilities as of September 30, 2019 and December 31, 2018 . |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company determines if an arrangement is or contains a lease at inception. The Company enters into lease arrangements primarily for data center spaces, office spaces and equipment. The Company recognizes a ROU asset and lease liability on the condensed consolidated balance sheet for all leases with a term longer than 12 months. As of September 30, 2019 , the Company recorded finance lease assets of $1,135.0 million , net of accumulated amortization of $468.7 million , within the property, plant and equipment, net. ROU assets represent the Company's right to use an underlying asset for the lease term. Lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and liabilities are classified and recognized at the commencement date. ROU liabilities are measured based on the present value of fixed lease payments over the lease term. ROU assets consist of (i) initial measurement of the lease liability; (ii) lease payments made to the lessor at or before the commencement date less any lease incentives received; and (iii) initial direct costs incurred by the Company. Lease payments may vary because of changes in facts or circumstances occurring after the commencement, including changes in inflation indices. Variable lease payments that depend on an index or a rate (such as the Consumer Price Index or a market interest rate) are included in the measurement of ROU assets and lease liabilities using the index or rate at the commencement date. Variable lease payments that do not depend on an index or a rate are excluded from the measurement of ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. Since most of the Company's leases do not provide an implicit rate, the Company uses its own incremental borrowing rate ("IBR") on a collateralized basis in determining the present value of lease payments. The Company utilizes a market-based approach to estimate the IBR. The approach requires significant judgment. Therefore, the Company utilizes different data sets to estimate IBRs via an analysis of (i) yields on comparable credit rating composite curves; (ii) sovereign rates; (iii) yields on our outstanding public debt; and (iv) historical difference in yields on the curves of our secured and unsecured rated debt. The Company also applies adjustments to account for considerations related to (i) tenor; and (ii) country credit rating that may not be fully incorporated by the aforementioned data sets. The majority of the Company's lease arrangements include options to extend the lease. If the Company is reasonably certain to exercise such options, the periods covered by the options are included in the lease term. The depreciable lives of certain fixed assets and leasehold improvements are limited by the expected lease term. The Company has certain leases with an initial term of 12 months or less. For such leases, the Company elects not to recognize any ROU asset or lease liability on the condensed consolidated balance sheet. The Company has lease agreements with lease and non-lease components. The Company elects to account for the lease and non-lease components as a single lease component for all classes of underlying assets for which the Company has identified lease arrangements. Significant Lease Transactions Hong Kong 4 ("HK4") Data Center In August 2018, the Company entered into a lease agreement with the landlord to lease the remaining floors of the HK4 Data Center. The lease did not commence until May 2019. The Company assessed the lease classification of the HK4 lease at the commencement date and determined the lease should be accounted for as an operating lease. During the three months ended June 30, 2019, the Company recorded operating lease ROU asset and liability of 317.3 million Hong Kong dollars, or $40.6 million at the exchange rate in effect on June 30, 2019. Seoul 1 ("SL1") Data Center In October 2018, the Company entered into a lease agreement with the landlord for several leased spaces in SL1 Data Center. Phase 1 commenced in August 2019 with an initial term of 5 years . The Company concluded that one renewal option of 5 years is reasonably certain to be exercised after considering all relevant factors that create an economic incentive for the Company. The Company assessed the lease classification of the SL1 lease at the commencement date and determined the lease should be accounted for as a finance lease. During the three months ended September 30, 2019, the Company recorded finance lease ROU asset and liability of 35,747 million Korean Won and 34,804 million Korean Won, respectively, or $29.9 million and $29.1 million , respectively, at the exchange rate in effect on September 30, 2019. Tokyo 11 ("TY11") Data Center In July 2019, the Company entered into two new lease agreements for building I and building II in TY11 Data Center and at the same time terminated the original lease agreement of certain leased space in building I. The new spaces in building I and building II provide additional right-of-use assets not included in the original lease agreement and the lease payments for the new spaces are commensurate with the stand-alone price of the additional right-of-use assets. As a result, the Company concluded the new spaces in building I and building II meet the criteria to be treated as a separate contract and did not modify the accounting treatment of the original leased space. The Company assessed the lease classification of TY11 leases at the commencement date and determined that the leases for both the new spaces in building I and building II should be accounted for as finance leases. During the three months ended September 30, 2019, the Company recorded finance lease ROU asset and liability of ¥6,922.3 million in aggregate for both new spaces in building I and II, or approximately $64.0 million at the exchange rate in effect on September 30, 2019. Singapore 4 ("SG4") Data Center In July 2019, the Company entered into a lease agreement with the landlord to lease the land and building for its new SG4 Data Center. The Company assessed the lease classification of the SG4 lease at the commencement date and determined that the lease for the building and land components should be accounted for as a finance lease and operating lease, respectively. During the three months ended September 30, 2019, the Company recorded finance lease ROU asset and liability of 75.5 million Singapore dollars, or approximately $54.6 million , and operating lease ROU asset and liability of 48.5 million Singapore dollars, or approximately $35.1 million , at the exchange rate in effect on September 30, 2019. Silicon Valley 3 ("SV3") Data Center In July 2019, the Company entered into a lease agreement with the landlord to extend the term of the SV3 lease for an additional 12 years . The SV3 lease renewal is accounted for as a lease modification. The Company assessed the lease classification of the SV3 lease at modification date and determined that the lease for the building and land components should be accounted for as a finance lease and operating lease, respectively. During the three months ended September 30, 2019, the Company recorded incremental finance lease ROU asset and liability of $39.9 million . The Company also recorded incremental operating lease ROU asset and liability of $13.1 million . Lease Expenses The components of lease expenses are as follows (in thousands): Three Months Ended September 30, 2019 Nine Months Ended Finance lease cost Amortization of right-of-use assets (1) $ 21,313 $ 61,210 Interest on lease liabilities 28,039 82,673 Total finance lease cost 49,352 143,883 Operating lease cost 57,946 164,505 Total lease cost $ 107,298 $ 308,388 (1) Amortization of right-of-use assets is included with depreciation expense, and is recorded within cost of revenues, sales and marketing and general and administrative expenses in the condensed consolidated statements of operations. Other Information Other information related to leases is as follows (in thousands): Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 79,140 Operating cash flows from operating leases 157,106 Financing cash flows from finance leases 62,785 Right-of-use assets obtained in exchange for lease obligations: (1) Finance leases $ 196,725 Operating leases 143,144 As of September 30, 2019 Weighted-average remaining lease term - finance leases (2) 15 years Weighted-average remaining lease term - operating leases (2) 13 years Weighted-average discount rate - finance leases 9 % Weighted-average discount rate - operating leases 4 % (1) Represents all non-cash changes in ROU assets, including the impact of reclassifying finance lease and operating lease ROU assets of $36.9 million and $9.2 million , respectively, to assets held for sale. Refer to Note 5. (2) Includes lease renewal options that are reasonably certain to be exercised. Maturities of Lease Liabilities Maturities of lease liabilities under Topic 842 as of September 30, 2019 are as follows (in thousands): Operating Leases Finance Leases Total 2019 (3 months remaining) $ 39,216 $ 39,309 $ 78,525 2020 200,432 168,410 368,842 2021 188,811 168,192 357,003 2022 181,250 168,745 349,995 2023 167,098 169,689 336,787 Thereafter 1,233,604 1,752,663 2,986,267 Total lease payments 2,010,411 2,467,008 4,477,419 Plus amount representing residual property value — 18,436 18,436 Less imputed interest (539,508 ) (1,118,444 ) (1,657,952 ) Total $ 1,470,903 $ 1,367,000 $ 2,837,903 For the year ended December 31, 2018, the Company's operating lease, capital lease and other financing obligations under ASC Topic 840 are summarized as follows (in thousands): Capital Lease Obligations Other Financing Obligations (1) Total Capital Lease and Other Financing Obligations Operating Leases 2019 $ 103,859 $ 80,292 $ 184,151 $ 187,280 2020 97,326 73,266 170,592 179,515 2021 95,414 73,672 169,086 166,159 2022 94,954 73,856 168,810 158,115 2023 95,463 69,423 164,886 147,677 Thereafter 878,755 722,496 1,601,251 1,130,494 Total minimum lease payments 1,365,771 1,093,005 2,458,776 1,969,240 Plus amount representing residual property value — 389,643 389,643 — Less amount representing interest (602,026 ) (727,472 ) (1,329,498 ) — Present value of net minimum lease payments 763,745 755,176 1,518,921 1,969,240 Less current portion (43,498 ) (34,346 ) (77,844 ) — Total $ 720,247 $ 720,830 $ 1,441,077 $ 1,969,240 (1) Other financing obligations are primarily related to build-to-suit arrangements. The Company entered into agreements with various landlords primarily to lease data center spaces which have not yet commenced as of September 30, 2019 . These leases will commence between fiscal years 2019 and 2020 , with lease terms of 10 to 25 years and a total lease commitment of approximately $41.8 million . |
Leases | Leases The Company determines if an arrangement is or contains a lease at inception. The Company enters into lease arrangements primarily for data center spaces, office spaces and equipment. The Company recognizes a ROU asset and lease liability on the condensed consolidated balance sheet for all leases with a term longer than 12 months. As of September 30, 2019 , the Company recorded finance lease assets of $1,135.0 million , net of accumulated amortization of $468.7 million , within the property, plant and equipment, net. ROU assets represent the Company's right to use an underlying asset for the lease term. Lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and liabilities are classified and recognized at the commencement date. ROU liabilities are measured based on the present value of fixed lease payments over the lease term. ROU assets consist of (i) initial measurement of the lease liability; (ii) lease payments made to the lessor at or before the commencement date less any lease incentives received; and (iii) initial direct costs incurred by the Company. Lease payments may vary because of changes in facts or circumstances occurring after the commencement, including changes in inflation indices. Variable lease payments that depend on an index or a rate (such as the Consumer Price Index or a market interest rate) are included in the measurement of ROU assets and lease liabilities using the index or rate at the commencement date. Variable lease payments that do not depend on an index or a rate are excluded from the measurement of ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. Since most of the Company's leases do not provide an implicit rate, the Company uses its own incremental borrowing rate ("IBR") on a collateralized basis in determining the present value of lease payments. The Company utilizes a market-based approach to estimate the IBR. The approach requires significant judgment. Therefore, the Company utilizes different data sets to estimate IBRs via an analysis of (i) yields on comparable credit rating composite curves; (ii) sovereign rates; (iii) yields on our outstanding public debt; and (iv) historical difference in yields on the curves of our secured and unsecured rated debt. The Company also applies adjustments to account for considerations related to (i) tenor; and (ii) country credit rating that may not be fully incorporated by the aforementioned data sets. The majority of the Company's lease arrangements include options to extend the lease. If the Company is reasonably certain to exercise such options, the periods covered by the options are included in the lease term. The depreciable lives of certain fixed assets and leasehold improvements are limited by the expected lease term. The Company has certain leases with an initial term of 12 months or less. For such leases, the Company elects not to recognize any ROU asset or lease liability on the condensed consolidated balance sheet. The Company has lease agreements with lease and non-lease components. The Company elects to account for the lease and non-lease components as a single lease component for all classes of underlying assets for which the Company has identified lease arrangements. Significant Lease Transactions Hong Kong 4 ("HK4") Data Center In August 2018, the Company entered into a lease agreement with the landlord to lease the remaining floors of the HK4 Data Center. The lease did not commence until May 2019. The Company assessed the lease classification of the HK4 lease at the commencement date and determined the lease should be accounted for as an operating lease. During the three months ended June 30, 2019, the Company recorded operating lease ROU asset and liability of 317.3 million Hong Kong dollars, or $40.6 million at the exchange rate in effect on June 30, 2019. Seoul 1 ("SL1") Data Center In October 2018, the Company entered into a lease agreement with the landlord for several leased spaces in SL1 Data Center. Phase 1 commenced in August 2019 with an initial term of 5 years . The Company concluded that one renewal option of 5 years is reasonably certain to be exercised after considering all relevant factors that create an economic incentive for the Company. The Company assessed the lease classification of the SL1 lease at the commencement date and determined the lease should be accounted for as a finance lease. During the three months ended September 30, 2019, the Company recorded finance lease ROU asset and liability of 35,747 million Korean Won and 34,804 million Korean Won, respectively, or $29.9 million and $29.1 million , respectively, at the exchange rate in effect on September 30, 2019. Tokyo 11 ("TY11") Data Center In July 2019, the Company entered into two new lease agreements for building I and building II in TY11 Data Center and at the same time terminated the original lease agreement of certain leased space in building I. The new spaces in building I and building II provide additional right-of-use assets not included in the original lease agreement and the lease payments for the new spaces are commensurate with the stand-alone price of the additional right-of-use assets. As a result, the Company concluded the new spaces in building I and building II meet the criteria to be treated as a separate contract and did not modify the accounting treatment of the original leased space. The Company assessed the lease classification of TY11 leases at the commencement date and determined that the leases for both the new spaces in building I and building II should be accounted for as finance leases. During the three months ended September 30, 2019, the Company recorded finance lease ROU asset and liability of ¥6,922.3 million in aggregate for both new spaces in building I and II, or approximately $64.0 million at the exchange rate in effect on September 30, 2019. Singapore 4 ("SG4") Data Center In July 2019, the Company entered into a lease agreement with the landlord to lease the land and building for its new SG4 Data Center. The Company assessed the lease classification of the SG4 lease at the commencement date and determined that the lease for the building and land components should be accounted for as a finance lease and operating lease, respectively. During the three months ended September 30, 2019, the Company recorded finance lease ROU asset and liability of 75.5 million Singapore dollars, or approximately $54.6 million , and operating lease ROU asset and liability of 48.5 million Singapore dollars, or approximately $35.1 million , at the exchange rate in effect on September 30, 2019. Silicon Valley 3 ("SV3") Data Center In July 2019, the Company entered into a lease agreement with the landlord to extend the term of the SV3 lease for an additional 12 years . The SV3 lease renewal is accounted for as a lease modification. The Company assessed the lease classification of the SV3 lease at modification date and determined that the lease for the building and land components should be accounted for as a finance lease and operating lease, respectively. During the three months ended September 30, 2019, the Company recorded incremental finance lease ROU asset and liability of $39.9 million . The Company also recorded incremental operating lease ROU asset and liability of $13.1 million . Lease Expenses The components of lease expenses are as follows (in thousands): Three Months Ended September 30, 2019 Nine Months Ended Finance lease cost Amortization of right-of-use assets (1) $ 21,313 $ 61,210 Interest on lease liabilities 28,039 82,673 Total finance lease cost 49,352 143,883 Operating lease cost 57,946 164,505 Total lease cost $ 107,298 $ 308,388 (1) Amortization of right-of-use assets is included with depreciation expense, and is recorded within cost of revenues, sales and marketing and general and administrative expenses in the condensed consolidated statements of operations. Other Information Other information related to leases is as follows (in thousands): Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 79,140 Operating cash flows from operating leases 157,106 Financing cash flows from finance leases 62,785 Right-of-use assets obtained in exchange for lease obligations: (1) Finance leases $ 196,725 Operating leases 143,144 As of September 30, 2019 Weighted-average remaining lease term - finance leases (2) 15 years Weighted-average remaining lease term - operating leases (2) 13 years Weighted-average discount rate - finance leases 9 % Weighted-average discount rate - operating leases 4 % (1) Represents all non-cash changes in ROU assets, including the impact of reclassifying finance lease and operating lease ROU assets of $36.9 million and $9.2 million , respectively, to assets held for sale. Refer to Note 5. (2) Includes lease renewal options that are reasonably certain to be exercised. Maturities of Lease Liabilities Maturities of lease liabilities under Topic 842 as of September 30, 2019 are as follows (in thousands): Operating Leases Finance Leases Total 2019 (3 months remaining) $ 39,216 $ 39,309 $ 78,525 2020 200,432 168,410 368,842 2021 188,811 168,192 357,003 2022 181,250 168,745 349,995 2023 167,098 169,689 336,787 Thereafter 1,233,604 1,752,663 2,986,267 Total lease payments 2,010,411 2,467,008 4,477,419 Plus amount representing residual property value — 18,436 18,436 Less imputed interest (539,508 ) (1,118,444 ) (1,657,952 ) Total $ 1,470,903 $ 1,367,000 $ 2,837,903 For the year ended December 31, 2018, the Company's operating lease, capital lease and other financing obligations under ASC Topic 840 are summarized as follows (in thousands): Capital Lease Obligations Other Financing Obligations (1) Total Capital Lease and Other Financing Obligations Operating Leases 2019 $ 103,859 $ 80,292 $ 184,151 $ 187,280 2020 97,326 73,266 170,592 179,515 2021 95,414 73,672 169,086 166,159 2022 94,954 73,856 168,810 158,115 2023 95,463 69,423 164,886 147,677 Thereafter 878,755 722,496 1,601,251 1,130,494 Total minimum lease payments 1,365,771 1,093,005 2,458,776 1,969,240 Plus amount representing residual property value — 389,643 389,643 — Less amount representing interest (602,026 ) (727,472 ) (1,329,498 ) — Present value of net minimum lease payments 763,745 755,176 1,518,921 1,969,240 Less current portion (43,498 ) (34,346 ) (77,844 ) — Total $ 720,247 $ 720,830 $ 1,441,077 $ 1,969,240 (1) Other financing obligations are primarily related to build-to-suit arrangements. The Company entered into agreements with various landlords primarily to lease data center spaces which have not yet commenced as of September 30, 2019 . These leases will commence between fiscal years 2019 and 2020 , with lease terms of 10 to 25 years and a total lease commitment of approximately $41.8 million . |
Debt Facilities
Debt Facilities | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt Facilities | Debt Facilities Mortgage and Loans Payable As of September 30, 2019 and December 31, 2018 , the Company's mortgage and loans payable consisted of the following (in thousands): September 30, December 31, 2018 Term loans $ 1,249,194 $ 1,344,482 Mortgage payable and loans payable 40,261 44,042 1,289,455 1,388,524 Less amount representing unamortized debt discount and debt issuance cost (5,195 ) (6,614 ) Add amount representing unamortized mortgage premium 1,736 1,882 1,285,996 1,383,792 Less current portion (70,789 ) (73,129 ) Total $ 1,215,207 $ 1,310,663 Senior Notes As of September 30, 2019 and December 31, 2018 , the Company's senior notes consisted of the following (in thousands): September 30, 2019 December 31, 2018 Amount Effective Rate Amount Effective Rate 5.000% Infomart Senior Notes (1) $ 600,000 4.43 % $ 750,000 4.40 % 5.375% Senior Notes due 2022 750,000 5.56 % 750,000 5.56 % 5.375% Senior Notes due 2023 1,000,000 5.51 % 1,000,000 5.51 % 2.875% Euro Senior Notes due 2024 817,650 3.08 % 859,125 3.08 % 5.750% Senior Notes due 2025 500,000 5.88 % 500,000 5.88 % 2.875% Euro Senior Notes due 2025 1,090,200 3.04 % 1,145,500 3.04 % 5.875% Senior Notes due 2026 1,100,000 6.03 % 1,100,000 6.03 % 2.875% Euro Senior Notes due 2026 1,090,200 3.04 % 1,145,500 3.04 % 5.375% Senior Notes due 2027 1,250,000 5.51 % 1,250,000 5.51 % 8,198,050 8,500,125 Less amount representing unamortized debt issuance cost (64,577 ) (75,372 ) Add amount representing unamortized debt premium 2,310 5,031 8,135,783 8,429,784 Less current portion (300,466 ) (300,999 ) Total $ 7,835,317 $ 8,128,785 (1) 5.000% Infomart Senior Notes consist of five tranches due in each of April 2019, October 2019, April 2020, October 2020 and April 2021. The effective rate represents the weighted-average effective interest rates of the tranches outstanding at the periods presented in the table above. Maturities of Debt Instruments The following table sets forth maturities of the Company's debt, including mortgage and loans payable, and senior notes, gross of debt issuance costs, debt discounts and debt premiums, as of September 30, 2019 (in thousands): Years ending: 2019 (3 months remaining) $ 167,978 2020 370,980 2021 220,736 2022 1,876,563 2023 1,002,515 Thereafter 5,850,469 Total $ 9,489,241 Fair Value of Debt Instruments The following table sets forth the estimated fair values of the Company's mortgage and loans payable and senior notes, including current maturities, as of (in thousands): September 30, December 31, Mortgage and loans payable $ 1,296,497 $ 1,389,632 Senior notes 8,561,823 8,422,211 The fair values of the mortgage and loans payable and 5.000% Infomart Senior Notes, which were not publicly traded, were estimated by considering the Company's credit rating, current rates available to the Company for debt of the same remaining maturities and terms of the debt (Level 2). The fair value of the senior notes, which were traded in the public debt market, was based on quoted market prices (Level 1). Interest Charges The following table sets forth total interest costs incurred and total interest costs capitalized for the periods presented (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Interest expense $ 118,674 $ 130,566 $ 362,067 $ 391,516 Interest capitalized 8,424 6,206 24,188 13,004 Interest charges incurred $ 127,098 $ 136,772 $ 386,255 $ 404,520 Total interest paid, net of capitalized interest, during the three months ended September 30, 2019 and 2018 was $144.8 million and $146.7 million , respectively. Total interest paid, net of capitalized interest, during the nine months ended September 30, 2019 and 2018 was $388.5 million and $362.0 million , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments As a result of the Company's various IBX data center expansion projects, as of September 30, 2019 , the Company was contractually committed for approximately $0.8 billion 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. The Company also had numerous other, non-capital purchase commitments in place as of September 30, 2019 , such as commitments to purchase power in select locations through the remainder of 2019 and thereafter, and other open purchase orders for goods or services to be delivered or provided during the remainder of 2019 and thereafter. Such other miscellaneous purchase commitments totaled approximately $1.0 billion as of September 30, 2019 . In addition, the Company entered into lease agreements in various locations that have not yet commenced as of September 30, 2019 . For further information on lease commitments, see Note 8 above. Contingent Liabilities The Company estimates exposure on certain liabilities, such as indirect and property taxes, based on the best information available at the time of determination. With respect to real and personal property taxes, the Company records what it can reasonably estimate based on prior payment history, assessed value by the assessor's office, current landlord estimates or estimates based on current or changing fixed asset values in each specific municipality, as applicable. However, there are circumstances beyond the Company's control whereby the underlying value of the property or basis for which the tax is calculated on the property may change, such as a landlord selling the underlying property of one of the Company's IBX data center leases or a municipality changing the assessment value in a jurisdiction and, as a result, the Company's property tax obligations may vary from period to period. Based upon the most current facts and circumstances, the Company makes the necessary property tax accruals for each of its reporting periods. However, revisions in the Company's estimates of the potential or actual liability could materially impact the financial position, results of operations or cash flows of the Company. The Company's indirect and property tax filings in various jurisdictions are subject to examination by local tax authorities. The outcome of any examinations cannot be predicted with certainty. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations that would affect the adequacy of its tax accruals for each of the reporting periods. If any issues arising from the tax examinations are resolved in a manner inconsistent with the Company's expectations, the revision of the estimates of the potential or actual liabilities could materially impact the financial position, results of operations, or cash flows of the Company. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Stockholders' Equity Rollforward The following tables provide a rollforward of stockholders' equity for the three and nine months ended September 30, 2019 and 2018 (in thousands): AOCI (Loss) Retained Earnings Equinix Stockholders' Equity Non-controlling Interests Total Stockholders' Equity Common Stock Treasury Stock Additional Paid-in Capital Accumulated Shares Amount Shares Amount Balance as of December 31, 2018 81,119,117 $ 81 (396,859 ) $ (145,161 ) $ 10,751,313 $ (3,331,200 ) $ (945,702 ) $ 889,948 $ 7,219,279 $ — $ 7,219,279 Adjustment from adoption of new accounting standard update — — — — — — — (5,973 ) (5,973 ) — (5,973 ) Net income (loss) — — — — — — — 118,078 118,078 (331 ) 117,747 Other comprehensive income — — — — — — 3,337 — 3,337 7 3,344 Issuance of common stock and release of treasury stock for employee equity awards 360,464 — 1,706 360 27,233 — — — 27,593 — 27,593 Issuance of common stock for equity offering 2,985,575 3 — — 1,213,431 — — — 1,213,434 — 1,213,434 Dividend distribution on common stock, $2.46 per share — — — — — (198,933 ) — — (198,933 ) — (198,933 ) Settlement of accrued dividends on vested equity awards — — — — 284 (387 ) — — (103 ) — (103 ) Accrued dividends on unvested equity awards — — — — — (2,395 ) — — (2,395 ) — (2,395 ) Stock-based compensation, net of estimated forfeitures — — — — 50,795 — — — 50,795 — 50,795 Balance as of March 31, 2019 84,465,156 84 (395,153 ) (144,801 ) 12,043,056 (3,532,915 ) (942,365 ) 1,002,053 8,425,112 (324 ) 8,424,788 Net income — — — — — — — 143,527 143,527 325 143,852 Other comprehensive loss — — — — — — (16,078 ) — (16,078 ) (14 ) (16,092 ) Issuance of common stock and release of treasury stock for employee equity awards 26,435 — 359 76 (76 ) — — — — — — Issuance of common stock under ATM Program 722,361 1 — — 348,120 — — — 348,121 — 348,121 Dividend distribution on common stock, $2.46 per share — — — — — (207,949 ) — — (207,949 ) — (207,949 ) Settlement of accrued dividends on vested equity awards — — — — 12 (33 ) — — (21 ) — (21 ) Accrued dividends on unvested equity awards — — — — — (2,972 ) — — (2,972 ) — (2,972 ) AOCI (Loss) Retained Earnings Equinix Stockholders' Equity Non-controlling Interests Total Stockholders' Equity Common Stock Treasury Stock Additional Paid-in Capital Accumulated Shares Amount Shares Amount Stock-based compensation, net of estimated forfeitures — — — — 59,502 — — — 59,502 — 59,502 Balance as of June 30, 2019 85,213,952 85 (394,794 ) (144,725 ) 12,450,614 (3,743,869 ) (958,443 ) 1,145,580 8,749,242 (13 ) 8,749,229 Net income — — — — — — — 120,850 120,850 (39 ) 120,811 Other comprehensive loss — — — — — — (81,793 ) — (81,793 ) (28 ) (81,821 ) Issuance of common stock and release of treasury stock for employee equity awards 276,497 1 2,010 424 24,000 — — — 24,425 — 24,425 Issuance of common stock under ATM Program 181,194 — — — 99,421 — — — 99,421 — 99,421 Dividend distribution on common stock, $2.46 per share — — — — — (209,226 ) — — (209,226 ) — (209,226 ) Settlement of accrued dividends on vested equity awards — — — — 12 (230 ) — — (218 ) — (218 ) Accrued dividends on unvested equity awards — — — — — (2,993 ) — — (2,993 ) — (2,993 ) Stock-based compensation, net of estimated forfeitures — — — — 61,403 — — — 61,403 — 61,403 Balance as of September 30, 2019 85,671,643 $ 86 (392,784 ) $ (144,301 ) $ 12,635,450 $ (3,956,318 ) $ (1,040,236 ) $ 1,266,430 $ 8,761,111 $ (80 ) $ 8,761,031 Additional Paid-in Capital Accumulated AOCI (Loss) Retained Equinix Common Stock Treasury Stock Shares Amount Shares Amount Balance as of December 31, 2017 79,440,404 $ 79 (402,342 ) $ (146,320 ) $ 10,121,323 $ (2,592,792 ) $ (785,189 ) $ 252,689 $ 6,849,790 Adjustment from adoption of new accounting standard update — — — — — — (2,124 ) 271,900 269,776 Net income — — — — — — — 62,894 62,894 Other comprehensive income — — — — — — 69,144 — 69,144 Issuance of common stock and release of treasury stock for employee equity awards 416,512 1 2,957 625 25,221 — — — 25,847 Dividend distribution on common stock, $2.28 per share — — — — — (180,640 ) — — (180,640 ) Settlement of accrued dividends on vested equity awards — — — — 1,795 (530 ) — — 1,265 Accrued dividends on unvested equity awards — — — — — (2,216 ) — — (2,216 ) Stock-based compensation, net of estimated forfeitures — — — — 44,691 — — — 44,691 Balance as of March 31, 2018 79,856,916 80 (399,385 ) (145,695 ) 10,193,030 (2,776,178 ) (718,169 ) 587,483 7,140,551 Net income — — — — — — — 67,618 67,618 Other comprehensive loss — — — — — — (159,825 ) — (159,825 ) Issuance of common stock and release of treasury stock for employee equity awards 31,068 — 297 63 (50 ) — — — 13 Issuance of common stock under ATM Program 19,100 — — — 8,202 — — — 8,202 Dividend distribution on common stock, $2.28 per share — — — — — (181,207 ) — — (181,207 ) Settlement of accrued dividends on vested equity awards — — — — 103 (43 ) — — 60 Accrued dividends on unvested equity awards — — — — — (2,755 ) — — (2,755 ) Stock-based compensation, net of estimated forfeitures — — — — 51,870 — — — 51,870 Balance as of June 30, 2018 79,907,084 80 (399,088 ) (145,632 ) 10,253,155 (2,960,183 ) (877,994 ) 655,101 6,924,527 Net income — — — — — — — 124,825 124,825 Other comprehensive loss — — — — — — (44,154 ) — (44,154 ) Issuance of common stock and release of treasury stock for employee equity awards 268,086 — 1,968 416 23,827 — — — 24,243 Issuance of common stock under ATM Program 612,422 1 — — 265,671 — — — 265,672 Dividend distribution on common stock, $2.28 per share — — — — — (182,304 ) — — (182,304 ) Settlement of accrued dividends on vested equity awards — — — — 367 (263 ) — — 104 Accrued dividends on unvested equity awards — — — — — (2,680 ) — — (2,680 ) Stock-based compensation, net of estimated forfeitures — — — — 49,940 — — — 49,940 Balance as of September 30, 2018 80,787,592 $ 81 (397,120 ) $ (145,216 ) $ 10,592,960 $ (3,145,430 ) $ (922,148 ) $ 779,926 $ 7,160,173 Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss, net of tax, by components are as follows (in thousands): Balance as of Net Change Balance as of Foreign currency translation adjustment ("CTA") loss $ (998,603 ) $ (341,484 ) $ (1,340,087 ) Unrealized gain on cash flow hedges (1) 19,480 19,086 38,566 Net investment hedge CTA gain (1) 34,325 227,890 262,215 Net actuarial loss on defined benefit plans (2) (904 ) (26 ) (930 ) Accumulated other comprehensive loss attributable to Equinix $ (945,702 ) $ (94,534 ) $ (1,040,236 ) (1) Refer to Note 6 for a discussion of the amounts reclassified from accumulated other comprehensive loss to net income. (2) The Company has a defined benefit pension plan covering all employees in one country where such plan is mandated by law. The Company does not have any defined benefit plans in any other countries. The unamortized gain (loss) on defined benefit plans includes gains or losses resulting from a change in the value of either the projected benefit obligation or the plan assets resulting from a change in an actuarial assumption, net of amortization. Changes in foreign currencies can have a significant impact to the Company's consolidated balance sheets (as evidenced above in the Company's foreign currency translation loss), as well as its consolidated results of operations, as amounts in foreign currencies are generally translated into more U.S. Dollars when the U.S. Dollar weakens or fewer U.S. Dollars when the U.S. Dollar strengthens. As of September 30, 2019 , the U.S. Dollar was generally stronger relative to certain of the currencies of the foreign countries in which the Company operates as compared to December 31, 2018. This overall strengthening of the U.S. Dollar had an overall unfavorable impact on the Company's condensed consolidated financial position because the foreign denominations translated into fewer U.S. Dollars as evidenced by an increase in foreign currency translation loss for the nine months ended September 30, 2019 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 condensed consolidated financial position and results of operations including the amount of revenue that the Company reports in future periods. Common Stock In March 2019, the Company issued and sold 2,985,575 shares of common stock in a public offering pursuant to a registration statement and a related prospectus and prospectus supplement. The Company received net proceeds of approximately $1,213.4 million , net of underwriting discounts, commissions and offering expenses. In August 2017, the Company established an "at-the-market" equity offering program (the "2017 ATM Program") under which the Company may, from time to time, issue and sell shares of its common stock to or through sales agents up to an aggregate of $750.0 million . For the three and nine months ended September 30, 2018, the Company sold 612,422 shares and 631,522 shares, respectively, under the 2017 ATM Program, for approximately $265.7 million and $273.9 million , respectively, net of payment of commissions to sales agents and other offering expenses. As of December 31, 2018, no shares remained available for sale under the 2017 ATM Program. In December 2018, the Company launched another ATM program, under which it may offer and sell from time to time up to an aggregate of $750.0 million of its common stock in "at the market" transactions (the "2018 ATM Program"). For the three and nine months ended September 30, 2019 , the Company sold 181,194 shares and 903,555 shares, respectively, under the 2018 ATM program, for approximately $99.4 million and $447.5 million , respectively, net of payment of commissions to sales agents and other offering expenses. Stock-Based Compensation For the nine months ended September 30, 2019 , the Compensation Committee and/or the Stock Award Committee of the Company's Board of Directors, as the case may be, approved the issuance of an aggregate of 736,303 shares of restricted stock units to certain employees, including executive officers, pursuant to the 2000 Equity Incentive Plan. These equity awards are subject to vesting provisions and have a weighted-average grant date fair value of $440.61 and a weighted-average requisite service period of 3.65 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 revenues and adjusted funds from operations ("AFFO") per share as the performance measurements in the restricted stock units with both service and performance conditions that were granted in the nine months ended September 30, 2019 . 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. The Company used total shareholder return ("TSR") as the performance measurement in the restricted stock units with a service and market condition that were granted in the nine months ended September 30, 2019 . 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 2019 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 statements of operations (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Cost of revenues $ 7,104 $ 4,600 $ 18,616 $ 13,106 Sales and marketing 15,794 14,166 44,252 39,980 General and administrative 40,973 28,822 111,545 86,763 Total $ 63,871 $ 47,588 $ 174,413 $ 139,849 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
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 revenues and adjusted EBITDA performance both on a consolidated basis and based on these three reportable segments. The following tables present revenue information disaggregated by product lines and geographic areas (in thousands): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Americas EMEA Asia-Pacific Total Americas EMEA Asia-Pacific Total Colocation (1) $ 441,596 $ 357,201 $ 214,304 $ 1,013,101 $ 1,325,663 $ 1,036,121 $ 637,703 $ 2,999,487 Interconnection 146,212 41,063 39,495 226,770 427,235 117,202 114,148 658,585 Managed infrastructure 24,082 27,651 22,553 74,286 68,777 85,136 66,940 220,853 Other (1) 3,392 1,787 — 5,179 14,723 6,561 — 21,284 Recurring revenues 615,282 427,702 276,352 1,319,336 1,836,398 1,245,020 818,791 3,900,209 Non-recurring revenues 29,993 30,438 17,043 77,474 97,663 97,635 49,498 244,796 Total $ 645,275 $ 458,140 $ 293,395 $ 1,396,810 $ 1,934,061 $ 1,342,655 $ 868,289 $ 4,145,005 (1) Includes some leasing and hedging activities. Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Americas EMEA Asia-Pacific Total Americas EMEA Asia-Pacific Total Colocation (1) $ 433,828 $ 305,072 $ 191,143 $ 930,043 $ 1,294,848 $ 886,651 $ 543,513 $ 2,725,012 Interconnection 134,159 34,640 33,318 202,117 395,132 103,586 96,011 594,729 Managed infrastructure 18,698 28,387 20,848 67,933 55,525 88,804 64,212 208,541 Other (1) 5,161 2,552 — 7,713 11,220 6,682 — 17,902 Recurring revenues 591,846 370,651 245,309 1,207,806 1,756,725 1,085,723 703,736 3,546,184 Non-recurring revenues 33,838 26,104 16,003 75,945 89,861 73,830 51,696 215,387 Total $ 625,684 $ 396,755 $ 261,312 $ 1,283,751 $ 1,846,586 $ 1,159,553 $ 755,432 $ 3,761,571 (1) Includes some leasing and hedging activities. No single customer accounted for 10% or greater of the Company's accounts receivable or revenues for the three and nine months ended September 30, 2019 and 2018 . The Company defines adjusted EBITDA as income from operations excluding depreciation, amortization, accretion, stock-based compensation expense, restructuring charges, impairment charges, transaction costs and gain on asset sales as presented below (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Adjusted EBITDA: Americas $ 306,656 $ 296,003 $ 923,546 $ 881,507 EMEA 212,518 179,797 621,235 516,790 Asia-Pacific 155,528 136,726 467,086 397,748 Total adjusted EBITDA 674,702 612,526 2,011,867 1,796,045 Depreciation, amortization and accretion expense (321,746 ) (306,318 ) (957,001 ) (921,611 ) Stock-based compensation expense (63,871 ) (47,588 ) (174,413 ) (139,849 ) Impairment charges (1,189 ) — (16,023 ) — Transaction costs (2,991 ) 1,120 (8,236 ) (33,932 ) Gain on asset sale 463 6,013 463 6,013 Income from operations $ 285,368 $ 265,753 $ 856,657 $ 706,666 The Company also provides the following additional segment disclosures (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Depreciation and amortization: Americas $ 168,999 $ 157,458 $ 503,013 $ 474,958 EMEA 86,607 88,813 258,752 270,585 Asia-Pacific 66,285 59,455 192,528 175,082 Total $ 321,891 $ 305,726 $ 954,293 $ 920,625 Capital expenditures: Americas $ 203,281 $ 226,127 $ 521,399 $ 573,733 EMEA 171,293 238,372 506,499 615,140 Asia-Pacific 182,248 81,042 337,062 226,636 Total $ 556,822 $ 545,541 $ 1,364,960 $ 1,415,509 The Company's long-lived assets are located in the following geographic areas as of (in thousands): September 30, December 31, Americas $ 5,146,358 $ 5,010,507 EMEA 3,610,597 3,726,596 Asia-Pacific 2,472,242 2,288,917 Total long-lived assets $ 11,229,197 $ 11,026,020 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 4, 2019 , the Company entered into an agreement to acquire three data centers in Mexico for $175.0 million in an all-cash transaction. The acquisition is expected to close in the first quarter of 2020, subject to customary closing conditions including regulatory approval. The operating results of the acquisition will be reported in the Americas region following the date of acquisition. The valuation of assets acquired and liabilities assumed are still being appraised by a third-party and the purchase price allocation is not yet complete. On October 8, 2019 , the Company and GIC, Singapore's sovereign wealth fund, closed their Joint Venture. Upon closing, the Joint Venture acquired certain data center facilities in Europe from the Company, with the opportunity to add additional facilities to the Joint Venture in the future. The Company owns a 20% interest and GIC owns an 80% interest in the Joint Venture. The Company will account for its investments in the Joint Venture using the equity method of accounting. On October 30, 2019 , the Company declared a quarterly cash dividend of $2.46 per share, which is payable on December 11, 2019 to the Company's common stockholders of record as of the close of business on November 20, 2019 . |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2018 has been derived from audited consolidated financial statements as of that date. The condensed 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 ("U.S. 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 22, 2019. 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 Switch Datacenters' AMS1 data center business in Amsterdam, Netherlands from April 18, 2019, Metronode from April 18, 2018 and Infomart Dallas from April 2, 2018. All intercompany accounts and transactions have been eliminated in consolidation. |
Derivatives and Hedging Activities | Derivatives and Hedging Activities The Company uses derivative instruments, including foreign currency forwards and options and cross-currency interest rate swaps, to manage certain foreign currency exposures. Derivative instruments are viewed as risk management tools by the Company and are not used for speculative purposes. The Company recognizes all derivatives on the Company's condensed consolidated balance sheets at fair value. The accounting for changes in the value of a derivative depends on whether the contract qualifies and has been designated for hedge accounting. In order to qualify for hedge accounting, a derivative must be considered highly effective at reducing the risk associated with the exposure being hedged and there must be documentation of the risk management objective and strategy, including identification of the hedging instrument, the hedged item and the risk exposure, and the effectiveness assessment methodology. For cash flow hedges, the Company uses regression analysis at the time they are designated to assess their effectiveness. Hedge designations are reviewed on a quarterly basis to assess whether circumstances have changed that would disrupt the hedge instrument's relationship to the forecasted transactions or net investment. The Company uses the forward method to assess effectiveness of qualifying foreign currency forwards that are designated as cash flow hedges, whereby, the change in the fair value of the derivative is recorded in other comprehensive income (loss) and reclassified to the same line item in the condensed consolidated statement of operations that is used to present the earnings effect of the hedged item when the hedged item affects earnings. The Company uses the spot method to assess effectiveness of qualifying foreign currency exchange options that are designated as cash flow hedges, whereby, the change in fair value due to foreign currency exchange spot rates is recorded in other comprehensive income (loss) and reclassified to the same line item in the condensed consolidated statement of operations that is used to present the earnings effect of the hedged item when the hedged item affects earnings, and the change in fair value of the excluded component is recorded in other comprehensive income (loss) and amortized on a straight-line basis to the same line item in the condensed consolidated statement of operations that is used to present the earnings effect of the hedged item. When two or more derivative instruments in combination are jointly designated as a cash flow hedging instrument, as with foreign currency exchange option collars, they are treated as a single instrument. If the hedge relationship is terminated for any derivatives designated as cash flow hedges, then the change in fair value of the derivative recorded in other comprehensive income (loss) is recognized in earnings when the previously hedged item affects earnings, consistent with the original hedge strategy. For hedge relationships discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related derivative amounts recorded in other comprehensive income (loss) are immediately recognized in earnings. The Company uses the spot method to assess effectiveness of cross-currency interest rate swaps that are designated as net investment hedges, whereby, the change in fair value due to foreign currency exchange spot rates is recorded in other comprehensive income (loss) and the change in fair value of the excluded component is recorded in other comprehensive income (loss) and amortized to interest expense on a straight-line basis. From time to time, the Company also uses foreign exchange forward contracts to hedge against the effect of foreign exchange rate fluctuations on a portion of its net investment in the foreign subsidiaries. The Company uses the spot method to assess effectiveness of qualifying foreign currency forwards that are designated as net investment hedges, whereby, the change in fair value due to foreign currency exchange spot rates is recorded in other comprehensive income (loss) and the change in fair value of the excluded component is recorded in other comprehensive income (loss) and amortized to interest expense on a straight-line basis. Foreign currency gains or losses associated with derivatives that are not designated as hedging instruments for accounting purposes are recorded within other income (expense) in the Company's condensed consolidated statements of operations, with the exception of (i) foreign currency embedded derivatives contained in certain of the Company's customer contracts and (ii) foreign exchange forward contracts that are entered into to hedge the accounting impact of the foreign currency embedded derivatives, which are recorded within revenues in the Company's condensed consolidated statements of operations. For further information on derivatives and hedging activities, see Note 6 below. Derivatives Designated as Hedging Instruments Net Investment Hedges. The Company is exposed to the impact of foreign exchange rate fluctuations on the value of investments in its foreign subsidiaries whose functional currencies are other than the U.S. Dollar. In order to mitigate the impact of foreign currency exchange rates, the Company has entered into various foreign currency debt obligations, which are designated as hedges against the Company's net investments in foreign subsidiaries. As of September 30, 2019 and December 31, 2018 , the total principal amounts of foreign currency debt obligations designated as net investment hedges were $3,961.7 million and $4,139.8 million , respectively. The Company also uses cross-currency interest rate swaps to hedge a portion of its net investment in its European operations. As of September 30, 2019 , U.S. Dollar to Euro cross-currency interest rate swap contracts with a total notional amount of $750.0 million were outstanding, with maturity dates in April 2022, January 2024 and January 2025. At maturity of each outstanding contract, the Company will receive U.S. Dollars from and pay Euros to the contract counterparty. During the term of each contract, the Company receives interest payments in U.S. Dollars and makes interest payments in Euros based on a notional amount and fixed interest rates determined at contract inception. The Company did not have any cross-currency interest rate swaps outstanding as of December 31, 2018 . Cash Flow Hedges . The Company hedges its foreign currency translation exposure for forecasted revenues and expenses in its EMEA region between the U.S. Dollar and the British Pound, Euro, Swedish Krona and Swiss Franc. The foreign currency forward and option contracts that the Company uses to hedge this exposure are designated as cash flow hedges. As of September 30, 2019 and December 31, 2018 , the total notional amounts of these foreign exchange contracts were $848.6 million and $760.9 million , respectively. The Company enters into intercompany hedging instruments ("intercompany derivatives") with wholly-owned subsidiaries of the Company in order to hedge certain forecasted revenues and expenses denominated in currencies other than the U.S. Dollar. Simultaneously, the Company enters into derivative contracts with unrelated third parties to externally hedge the net exposure created by such intercompany derivatives. |
Income Taxes | Income Taxes The Company elected to be taxed as a real estate investment trust for federal income tax purposes ("REIT") beginning with its 2015 taxable year. As a result, the Company may deduct the distributions made to its stockholders from taxable income generated by the Company and its qualified REIT subsidiaries ("QRSs"). The Company's dividends paid deduction generally eliminates the U.S. taxable income of the Company and its QRSs, resulting in no U.S. income tax due. However, the Company's taxable REIT subsidiaries ("TRSs") 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 QRSs or TRSs. 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 | Assets Held for Sale 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. For further information on assets held for sale, see Note 5 below. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Standards Not Yet Adopted In June 2016, Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization's portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted for all organizations for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company will adopt this new ASU on January 1, 2020. The Company expects this ASU to impact its accounting for allowances for doubtful accounts and is currently evaluating the extent of the impact that the adoption of this standard will have on its condensed consolidated financial statements. Accounting Standards Adopted In August 2017, FASB issued ASU 2017-12 Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This ASU was issued to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements and to simplify the application of the hedge accounting guidance in current GAAP. This ASU permits hedge accounting for risk components involving nonfinancial risk and interest rate risk, requires an entity to present the earnings effect of the hedging instrument in the same income statement line item in which the hedged item is reported, no longer requires separate measurement and reporting of hedge ineffectiveness, eases the requirement for hedge effectiveness assessment, and requires a tabular disclosure related to the effect on the income statement of fair value and cash flow hedges. This ASU is effective for annual or any interim reporting periods beginning after December 15, 2018 with early adoption permitted. The Company adopted ASU 2017-12 on January 1, 2019 using the modified retrospective approach. For cash flow hedges existing on the date of adoption, the Company recognized the cumulative effect of the change on the opening balance of accumulated other comprehensive income (loss) with a corresponding adjustment to the opening balance of retained earnings for amounts previously recognized in earnings related to ineffectiveness. The adoption of this standard did not have a material impact on the Company's condensed consolidated financial statements. In February 2016, FASB issued ASU 2016-02, Leases and issued subsequent amendments to the initial guidance, collectively referred to as "Topic 842." Topic 842 replaces the guidance in former ASC Topic 840, Leases. The new lease guidance increases transparency and comparability among organizations by requiring the recognition of 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 future obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use ("ROU") 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. Topic 842 allows entities to adopt with one of two methods: the modified retrospective transition method or the alternative transition method. On January 1, 2019, the Company adopted Topic 842 using the alternative transition method. Therefore, results for reporting periods beginning after January 1, 2019 are presented under Topic 842, while comparative information has not been restated and continues to be reported under accounting standards in effect for those periods. The Company recognized the cumulative effects of initially applying the standard as an adjustment to the opening balance of retained earnings in the period of adoption. In adopting the new guidance, the Company elected to apply the package of practical expedients permitted under the transition guidance which allows the Company not to reassess (1) whether any expired or existing contracts contain leases under the new definition of a lease; (2) lease classification for any expired or existing leases; and (3) whether previously capitalized initial direct costs would qualify for capitalization under Topic 842. The Company also elected to apply the land easements practical expedient which permits the Company not to assess at transition whether any expired or existing land easements are, or contain, leases if they were not previously accounted for as leases under Topic 840. Upon adoption of Topic 842, the Company also elected to adopt the practical expedient which allows the Company to combine qualified non-lease and lease components by underlying class of asset based, on predominance, as a lessor. Occasionally, the Company enters into revenue contracts with customers for data center and office spaces, which contain both lease and non-lease components. In general, lease and non-lease components related to the use of space and solutions provided in a data center, which share the same pattern of transfer, will be combined and accounted for under ASC 606, Revenue from Contracts with Customers. Lease and non-lease components related to the use of office space, which share the same pattern of transfer, will be combined and accounted for under Topic 842. Lease components which are not classified as operating leases do not qualify for the practical expedient. Non-lease components, which do not have similar patterns of transfers, such as professional services and goods for resale, are also excluded from combination. Adoption of the standard had a significant impact on the Company's financial results, including the (1) recognition of new ROU assets and liabilities on its balance sheet for all operating leases; and (2) de-recognition of existing build-to-suit assets and liabilities with cumulative effects of initially applying the standard as an adjustment to the retained earnings. The cumulative effect of the changes made to its consolidated January 1, 2019 balance sheet from the adoption of Topic 842 was as follows (in thousands): Balance Sheet Balances at December 31, 2018 Adjustments due to adoption of Topic 842 Balances at January 1, 2019 Assets Other current assets $ 274,857 $ (15,949 ) $ 258,908 Property, plant and equipment, net 11,026,020 (293,111 ) 10,732,909 Operating lease right-of-use assets — 1,468,762 1,468,762 Intangible assets, net 2,333,296 (23,205 ) 2,310,091 Other assets 533,252 (63,468 ) 469,784 Liabilities Current portion of operating lease liabilities — 144,405 144,405 Current portion of finance lease liabilities — 70,795 70,795 Current portion of capital lease and other financing obligations 77,844 (77,844 ) — Other current liabilities 126,995 (6,455 ) 120,540 Operating lease liabilities, less current portion — 1,312,262 1,312,262 Finance lease liabilities, less current portion — 1,165,188 1,165,188 Capital lease and other financing obligations, less current portion 1,441,077 (1,441,077 ) — Other liabilities 629,763 (88,272 ) 541,491 Equity Retained Earnings 889,948 (5,973 ) 883,975 |
Revenue Recognition | Contract Balances The following table summarizes the opening and closing balances of the Company's accounts receivable, net; contract asset, current; contract asset, non-current; deferred revenue, current; and deferred revenue, non-current (in thousands): Accounts receivable, net Contract asset, current Contract asset, non-current Deferred revenue, current Deferred revenue, non-current Beginning balances as of January 1, 2019 $ 630,119 $ 9,778 $ 16,396 $ 73,142 $ 46,641 Closing balances as of September 30, 2019 746,571 9,491 25,685 76,892 46,798 Increase/(decrease) $ 116,452 $ (287 ) $ 9,289 $ 3,750 $ 157 The difference between the opening and closing balances of the Company's accounts receivable, net, contract assets and deferred revenues primarily results from revenue growth and the timing difference between the satisfaction of the Company's performance obligation and the customer's payment. The amounts of revenue recognized during the nine months ended September 30, 2019 from the opening deferred revenue balance as of January 1, 2019 was $76.1 million . Remaining performance obligations As of September 30, 2019 , approximately $7.4 billion of total revenues and deferred installation revenues are expected to be recognized in future periods, the majority of which will be recognized over the next 24 months . While initial contract terms vary in length, substantially all contracts thereafter automatically renew in one-year increments. Included in the remaining performance obligations is either 1) remaining performance obligations under the initial contract terms or 2) remaining performance obligations related to contracts in the renewal period once the initial terms have lapsed. The remaining performance obligations do not include variable consideration related to unsatisfied performance obligations such as the usage of metered power or any contracts that could be terminated without any significant penalties such as the majority of interconnection revenues. The remaining performance obligations above include revenues to be recognized in the future related to arrangements where the Company is considered the lessor. |
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 U.S. Dollars. 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. Foreign Currency Forward Contracts |
Cash, Cash Equivalents and Investments | Cash, Cash Equivalents and Investments. The fair value of the Company's investments in money market funds approximates their face value. Such instruments are included in cash equivalents. The Company's money market funds and publicly traded equity securities are classified within Level 1 of the fair value hierarchy because they are valued using quoted prices for identical instruments in active markets. The fair value of the Company's other investments, including certificates of deposit, approximates their face value. The fair value of these investments is priced based on the quoted market price for similar instruments or nonbinding market prices that are corroborated by observable market data. Such instruments are classified within Level 2 of the fair value hierarchy. The Company determines the fair values of its Level 2 investments by using inputs such as actual trade data, benchmark yields, broker/dealer quotes, and other similar data, which are obtained from quoted market prices, custody bank, third-party pricing vendors, or other sources. The Company uses such pricing data as the primary input to make its assessments and determinations as to the ultimate valuation of its investment portfolio and has not made, during the periods presented, any material adjustments to such inputs. The Company is responsible for its condensed consolidated financial statements and underlying estimates. The Company uses the specific identification method in computing realized gains and losses. Realized gains and losses on the investments are included within other income (expense) in the Company's condensed consolidated statements of operations. Publicly traded equity securities are measured at fair value with changes in the fair values recognized within other income (expense) in the Company's condensed consolidated statements of operations. |
Derivative Assets and Liabilities | Derivative Assets and Liabilities . For derivatives, the Company uses forward contract and option models employing market observable inputs, such as spot currency rates and forward points with adjustments made to these values utilizing published credit default swap rates of its foreign exchange trading counterparties and other comparable companies. The Company has determined that the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, therefore the derivatives are categorized as Level 2. |
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 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of ASU 842 adoption | The cumulative effect of the changes made to its consolidated January 1, 2019 balance sheet from the adoption of Topic 842 was as follows (in thousands): Balance Sheet Balances at December 31, 2018 Adjustments due to adoption of Topic 842 Balances at January 1, 2019 Assets Other current assets $ 274,857 $ (15,949 ) $ 258,908 Property, plant and equipment, net 11,026,020 (293,111 ) 10,732,909 Operating lease right-of-use assets — 1,468,762 1,468,762 Intangible assets, net 2,333,296 (23,205 ) 2,310,091 Other assets 533,252 (63,468 ) 469,784 Liabilities Current portion of operating lease liabilities — 144,405 144,405 Current portion of finance lease liabilities — 70,795 70,795 Current portion of capital lease and other financing obligations 77,844 (77,844 ) — Other current liabilities 126,995 (6,455 ) 120,540 Operating lease liabilities, less current portion — 1,312,262 1,312,262 Finance lease liabilities, less current portion — 1,165,188 1,165,188 Capital lease and other financing obligations, less current portion 1,441,077 (1,441,077 ) — Other liabilities 629,763 (88,272 ) 541,491 Equity Retained Earnings 889,948 (5,973 ) 883,975 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of opening and closing balances | The following table summarizes the opening and closing balances of the Company's accounts receivable, net; contract asset, current; contract asset, non-current; deferred revenue, current; and deferred revenue, non-current (in thousands): Accounts receivable, net Contract asset, current Contract asset, non-current Deferred revenue, current Deferred revenue, non-current Beginning balances as of January 1, 2019 $ 630,119 $ 9,778 $ 16,396 $ 73,142 $ 46,641 Closing balances as of September 30, 2019 746,571 9,491 25,685 76,892 46,798 Increase/(decrease) $ 116,452 $ (287 ) $ 9,289 $ 3,750 $ 157 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share ("EPS") for the periods presented (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Net income $ 120,811 $ 124,825 $ 382,410 $ 255,337 Net loss attributable to non-controlling interests 39 — 45 — Net income attributable to Equinix $ 120,850 $ 124,825 $ 382,455 $ 255,337 Weighted-average shares used to calculate basic EPS 85,012 79,872 83,753 79,533 Effect of dilutive securities: Employee equity awards 559 411 470 423 Weighted-average shares used to calculate diluted EPS 85,571 80,283 84,223 79,956 EPS attributable to Equinix: Basic EPS $ 1.42 $ 1.56 $ 4.57 $ 3.21 Diluted EPS $ 1.41 $ 1.55 $ 4.54 $ 3.19 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of final allocation of total purchase consideration | A summary of the final allocation of total purchase consideration is presented as follows (in thousands): Metronode Infomart Dallas Cash and cash equivalents $ 3,206 $ 17,432 Accounts receivable 8,318 637 Other current assets 9,421 395 Property, plant, and equipment 297,092 362,023 Intangible assets 128,229 65,847 Goodwill 410,188 197,378 Other assets (1) 44,373 — Total assets acquired 900,827 643,712 Accounts payable and accrued liabilities (17,104 ) (5,056 ) Other current liabilities (2,038 ) (2,141 ) Deferred tax liabilities (31,281 ) — Other liabilities (1) (45,851 ) (4,723 ) Net assets acquired $ 804,553 $ 631,792 (1) In connection with the Metronode Acquisition, the Company recorded indemnification assets of $44.4 million , which represented the seller's obligation under the purchase agreement to reimburse pre-acquisition tax liabilities settled after the acquisition. |
Schedule of acquired intangible assets | The following table presents certain information on the acquired intangible assets (in thousands): Intangible Assets Fair Value Estimated Useful Lives (Years) Weighted-average Estimated Useful Lives (Years) Customer relationships (Metronode) $ 128,229 20.0 20.0 Customer relationships (Infomart Dallas) 35,860 20.0 20.0 In-place leases (Infomart Dallas) 19,960 3.6 - 7.5 6.8 Trade names (Infomart Dallas) 9,552 20.0 20.0 Favorable leases (Infomart Dallas) 475 3.6 - 7.5 7.0 |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of assets and liabilities held for sale | The following table summarizes the assets and liabilities that were classified as assets and liabilities held for sale in the condensed consolidated balance sheet as of September 30, 2019 (in thousands): Other current assets $ 575 Property, plant and equipment 297,780 Operating lease right-of-use assets 9,187 Goodwill 67,950 Intangible assets 2,286 Deferred tax assets 1,571 Other assets 124 Total assets held for sale $ 379,473 Current portion of operating lease liabilities $ 754 Current portion of finance lease liabilities 167 Operating lease liabilities, less current portion 8,718 Finance lease liabilities, less current portion 41,099 Deferred tax liabilities 386 Other liabilities 968 Total liabilities held for sale $ 52,092 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of net investment hedges | The effect of net investment hedges on accumulated other comprehensive income and the condensed consolidated statements of operations for the three and nine months ended September 30, 2019 and 2018 was as follows (in thousands): Amount of gain or (loss) recognized in accumulated other comprehensive income: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Foreign currency debt $ 151,825 $ 27,213 $ 181,431 $ 179,056 Cross-currency interest rate swaps (included component) (1) 30,505 — 36,331 — Cross-currency interest rate swaps (excluded component) (2) 6,566 — 10,117 — Total $ 188,896 $ 27,213 $ 227,879 $ 179,056 Amount of gain or (loss) recognized in earnings: Location of gain or (loss) Three Months Ended Nine Months Ended 2019 2018 2019 2018 Cross-currency interest rate swaps (excluded component) (2) Interest expense $ 5,072 $ — $ 14,163 $ — Total $ 5,072 $ — $ 14,163 $ — (1) Included component represents foreign exchange spot rates. (2) Excluded component represents cross-currency basis spread and interest rates. |
Summary of cash flow hedges | The effect of cash flow hedges on accumulated other comprehensive income and the condensed consolidated statements of operations for the three and nine months ended September 30, 2019 and 2018 was as follows (in thousands): Amount of gain or (loss) recognized in accumulated other comprehensive income: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Foreign currency forward and option contracts (included component) (1) $ 20,979 $ 8,246 $ 29,345 $ 49,836 Foreign currency option contracts (excluded component) (2) (1,518 ) — (2,923 ) — Total $ 19,461 $ 8,246 $ 26,422 $ 49,836 Amount of gain or (loss) reclassified from accumulated other comprehensive income to income: Three Months Ended Nine Months Ended Location of gain or (loss) 2019 2018 2019 2018 Foreign currency forward contracts Revenues $ 27,843 $ (3,294 ) $ 56,388 $ (34,613 ) Foreign currency forward contracts Costs and operating expenses (14,474 ) 1,441 (29,548 ) 17,542 Total $ 13,369 $ (1,853 ) $ 26,840 $ (17,071 ) Amount of gain or (loss) excluded from effectiveness testing included in income: Three Months Ended Nine Months Ended Location of gain or (loss) 2019 2018 2019 2018 Foreign currency forward contracts Other income (expense) $ — $ 3,860 $ 88 $ 10,290 Foreign currency option contracts (excluded component) (2) Revenues (538 ) — (555 ) — Total $ (538 ) $ 3,860 $ (467 ) $ 10,290 (1) Included component represents foreign exchange spot rates. (2) Excluded component represents option's time value. |
Schedule of derivatives not designated as hedging instruments in the Company's condensed consolidated statements of operations | The following table presents the effect of derivatives not designated as hedging instruments in the Company's condensed consolidated statements of operations (in thousands): Amount of gain or (loss) recognized in earnings: Three Months Ended Nine Months Ended Location of gain or (loss) 2019 2018 2019 2018 Embedded derivatives Revenues $ 2,830 $ 742 $ 3,552 $ 2,206 Economic hedge of embedded derivatives Revenues (3,221 ) (422 ) (2,680 ) (1,360 ) Foreign currency forward contracts Other income (expense) 77,644 17,061 96,143 60,737 Total $ 77,253 $ 17,381 $ 97,015 $ 61,583 |
Schedule of derivative instruments recognized in the Company's condensed consolidated balance sheets | The following table presents the fair value of derivative instruments recognized in the Company's condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 December 31, 2018 Assets (1) Liabilities (2) Assets (1) Liabilities (2) Designated as hedging instruments: Cash flow hedges Foreign currency forward and option contracts $ 59,401 $ — $ 38,606 $ 865 Net investment hedges Cross-currency interest rate swaps 46,449 — — — Total designated as hedging 105,850 — 38,606 865 Not designated as hedging instruments: Embedded derivatives 7,131 1,336 4,656 2,426 Economic hedges of embedded derivatives 492 697 525 180 Foreign currency forward contracts 28,778 3 29,287 6,269 Total not designated as hedging 36,401 2,036 34,468 8,875 Total Derivatives $ 142,251 $ 2,036 $ 73,074 $ 9,740 (1) As presented in the Company's condensed consolidated balance sheets within other current assets and other assets. (2) As presented in the Company's condensed consolidated balance sheets within other current liabilities and other liabilities. |
Schedule of offsetting derivative assets and liabilities | The following table presents information related to these offsetting arrangements as of September 30, 2019 and December 31, 2018 (in thousands): Gross Amounts Offset in Consolidated Balance Sheet Gross Amounts Gross Amounts Offset in the Balance Sheet Net Amounts Gross Amounts not Offset in the Balance Sheet Net September 30, 2019 Derivative assets $ 154,394 $ — $ 154,394 $ (6,307 ) $ 148,087 Derivative liabilities 8,203 — 8,203 (6,307 ) 1,896 December 31, 2018 Derivative assets $ 73,074 $ — $ 73,074 $ (6,517 ) $ 66,557 Derivative liabilities 9,740 — 9,740 (6,517 ) 3,223 |
Schedule of offsetting derivative assets and liabilities | The following table presents information related to these offsetting arrangements as of September 30, 2019 and December 31, 2018 (in thousands): Gross Amounts Offset in Consolidated Balance Sheet Gross Amounts Gross Amounts Offset in the Balance Sheet Net Amounts Gross Amounts not Offset in the Balance Sheet Net September 30, 2019 Derivative assets $ 154,394 $ — $ 154,394 $ (6,307 ) $ 148,087 Derivative liabilities 8,203 — 8,203 (6,307 ) 1,896 December 31, 2018 Derivative assets $ 73,074 $ — $ 73,074 $ (6,517 ) $ 66,557 Derivative liabilities 9,740 — 9,740 (6,517 ) 3,223 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets and liabilities measured at fair value on a recurring basis | The Company's financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 were as follows (in thousands): Fair Value at Fair Value Measurement Using Level 1 Level 2 Assets: Cash $ 832,235 $ 832,235 $ — Money market and deposit accounts 570,165 570,165 — Publicly traded equity securities 2,647 2,647 — Certificates of deposit 16,920 — 16,920 Derivative instruments (1) 142,251 — 142,251 Total $ 1,564,218 $ 1,405,047 $ 159,171 Liabilities: Derivative instruments (1) $ 2,036 $ — $ 2,036 (1) 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, 2018 were as follows (in thousands): Fair Value at Fair Value Measurement Using Level 1 Level 2 Assets: Cash $ 486,648 $ 486,648 $ — Money market and deposit accounts 119,518 119,518 — Publicly traded equity securities 1,717 1,717 — Certificates of deposit 2,823 — 2,823 Derivative instruments (1) 73,074 — 73,074 Total $ 683,780 $ 607,883 $ 75,897 Liabilities: Derivative instruments (1) $ 9,740 $ — $ 9,740 (1) Amounts are included within other current assets, other assets, other current liabilities and other liabilities in the Company's accompanying condensed consolidated balance sheet. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Components of lease expenses | The components of lease expenses are as follows (in thousands): Three Months Ended September 30, 2019 Nine Months Ended Finance lease cost Amortization of right-of-use assets (1) $ 21,313 $ 61,210 Interest on lease liabilities 28,039 82,673 Total finance lease cost 49,352 143,883 Operating lease cost 57,946 164,505 Total lease cost $ 107,298 $ 308,388 (1) Amortization of right-of-use assets is included with depreciation expense, and is recorded within cost of revenues, sales and marketing and general and administrative expenses in the condensed consolidated statements of operations. |
Other information related to leases | Other information related to leases is as follows (in thousands): Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 79,140 Operating cash flows from operating leases 157,106 Financing cash flows from finance leases 62,785 Right-of-use assets obtained in exchange for lease obligations: (1) Finance leases $ 196,725 Operating leases 143,144 As of September 30, 2019 Weighted-average remaining lease term - finance leases (2) 15 years Weighted-average remaining lease term - operating leases (2) 13 years Weighted-average discount rate - finance leases 9 % Weighted-average discount rate - operating leases 4 % (1) Represents all non-cash changes in ROU assets, including the impact of reclassifying finance lease and operating lease ROU assets of $36.9 million and $9.2 million , respectively, to assets held for sale. Refer to Note 5. (2) |
Maturities of lease liabilities | Maturities of lease liabilities under Topic 842 as of September 30, 2019 are as follows (in thousands): Operating Leases Finance Leases Total 2019 (3 months remaining) $ 39,216 $ 39,309 $ 78,525 2020 200,432 168,410 368,842 2021 188,811 168,192 357,003 2022 181,250 168,745 349,995 2023 167,098 169,689 336,787 Thereafter 1,233,604 1,752,663 2,986,267 Total lease payments 2,010,411 2,467,008 4,477,419 Plus amount representing residual property value — 18,436 18,436 Less imputed interest (539,508 ) (1,118,444 ) (1,657,952 ) Total $ 1,470,903 $ 1,367,000 $ 2,837,903 For the year ended December 31, 2018, the Company's operating lease, capital lease and other financing obligations under ASC Topic 840 are summarized as follows (in thousands): Capital Lease Obligations Other Financing Obligations (1) Total Capital Lease and Other Financing Obligations Operating Leases 2019 $ 103,859 $ 80,292 $ 184,151 $ 187,280 2020 97,326 73,266 170,592 179,515 2021 95,414 73,672 169,086 166,159 2022 94,954 73,856 168,810 158,115 2023 95,463 69,423 164,886 147,677 Thereafter 878,755 722,496 1,601,251 1,130,494 Total minimum lease payments 1,365,771 1,093,005 2,458,776 1,969,240 Plus amount representing residual property value — 389,643 389,643 — Less amount representing interest (602,026 ) (727,472 ) (1,329,498 ) — Present value of net minimum lease payments 763,745 755,176 1,518,921 1,969,240 Less current portion (43,498 ) (34,346 ) (77,844 ) — Total $ 720,247 $ 720,830 $ 1,441,077 $ 1,969,240 (1) |
Maturities of lease liabilities | Maturities of lease liabilities under Topic 842 as of September 30, 2019 are as follows (in thousands): Operating Leases Finance Leases Total 2019 (3 months remaining) $ 39,216 $ 39,309 $ 78,525 2020 200,432 168,410 368,842 2021 188,811 168,192 357,003 2022 181,250 168,745 349,995 2023 167,098 169,689 336,787 Thereafter 1,233,604 1,752,663 2,986,267 Total lease payments 2,010,411 2,467,008 4,477,419 Plus amount representing residual property value — 18,436 18,436 Less imputed interest (539,508 ) (1,118,444 ) (1,657,952 ) Total $ 1,470,903 $ 1,367,000 $ 2,837,903 For the year ended December 31, 2018, the Company's operating lease, capital lease and other financing obligations under ASC Topic 840 are summarized as follows (in thousands): Capital Lease Obligations Other Financing Obligations (1) Total Capital Lease and Other Financing Obligations Operating Leases 2019 $ 103,859 $ 80,292 $ 184,151 $ 187,280 2020 97,326 73,266 170,592 179,515 2021 95,414 73,672 169,086 166,159 2022 94,954 73,856 168,810 158,115 2023 95,463 69,423 164,886 147,677 Thereafter 878,755 722,496 1,601,251 1,130,494 Total minimum lease payments 1,365,771 1,093,005 2,458,776 1,969,240 Plus amount representing residual property value — 389,643 389,643 — Less amount representing interest (602,026 ) (727,472 ) (1,329,498 ) — Present value of net minimum lease payments 763,745 755,176 1,518,921 1,969,240 Less current portion (43,498 ) (34,346 ) (77,844 ) — Total $ 720,247 $ 720,830 $ 1,441,077 $ 1,969,240 (1) |
Debt Facilities (Tables)
Debt Facilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of debt | As of September 30, 2019 and December 31, 2018 , the Company's mortgage and loans payable consisted of the following (in thousands): September 30, December 31, 2018 Term loans $ 1,249,194 $ 1,344,482 Mortgage payable and loans payable 40,261 44,042 1,289,455 1,388,524 Less amount representing unamortized debt discount and debt issuance cost (5,195 ) (6,614 ) Add amount representing unamortized mortgage premium 1,736 1,882 1,285,996 1,383,792 Less current portion (70,789 ) (73,129 ) Total $ 1,215,207 $ 1,310,663 As of September 30, 2019 and December 31, 2018 , the Company's senior notes consisted of the following (in thousands): September 30, 2019 December 31, 2018 Amount Effective Rate Amount Effective Rate 5.000% Infomart Senior Notes (1) $ 600,000 4.43 % $ 750,000 4.40 % 5.375% Senior Notes due 2022 750,000 5.56 % 750,000 5.56 % 5.375% Senior Notes due 2023 1,000,000 5.51 % 1,000,000 5.51 % 2.875% Euro Senior Notes due 2024 817,650 3.08 % 859,125 3.08 % 5.750% Senior Notes due 2025 500,000 5.88 % 500,000 5.88 % 2.875% Euro Senior Notes due 2025 1,090,200 3.04 % 1,145,500 3.04 % 5.875% Senior Notes due 2026 1,100,000 6.03 % 1,100,000 6.03 % 2.875% Euro Senior Notes due 2026 1,090,200 3.04 % 1,145,500 3.04 % 5.375% Senior Notes due 2027 1,250,000 5.51 % 1,250,000 5.51 % 8,198,050 8,500,125 Less amount representing unamortized debt issuance cost (64,577 ) (75,372 ) Add amount representing unamortized debt premium 2,310 5,031 8,135,783 8,429,784 Less current portion (300,466 ) (300,999 ) Total $ 7,835,317 $ 8,128,785 (1) 5.000% Infomart Senior Notes consist of five tranches due in each of April 2019, October 2019, April 2020, October 2020 and April 2021. The effective rate represents the weighted-average effective interest rates of the tranches outstanding at the periods presented in the table above. |
Summary of maturities of debt instruments | The following table sets forth maturities of the Company's debt, including mortgage and loans payable, and senior notes, gross of debt issuance costs, debt discounts and debt premiums, as of September 30, 2019 (in thousands): Years ending: 2019 (3 months remaining) $ 167,978 2020 370,980 2021 220,736 2022 1,876,563 2023 1,002,515 Thereafter 5,850,469 Total $ 9,489,241 |
Fair value of debt instruments | The following table sets forth the estimated fair values of the Company's mortgage and loans payable and senior notes, including current maturities, as of (in thousands): September 30, December 31, Mortgage and loans payable $ 1,296,497 $ 1,389,632 Senior notes 8,561,823 8,422,211 |
Schedule of interest charges incurred | The following table sets forth total interest costs incurred and total interest costs capitalized for the periods presented (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Interest expense $ 118,674 $ 130,566 $ 362,067 $ 391,516 Interest capitalized 8,424 6,206 24,188 13,004 Interest charges incurred $ 127,098 $ 136,772 $ 386,255 $ 404,520 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of rollforward of stockholders' equity | The following tables provide a rollforward of stockholders' equity for the three and nine months ended September 30, 2019 and 2018 (in thousands): AOCI (Loss) Retained Earnings Equinix Stockholders' Equity Non-controlling Interests Total Stockholders' Equity Common Stock Treasury Stock Additional Paid-in Capital Accumulated Shares Amount Shares Amount Balance as of December 31, 2018 81,119,117 $ 81 (396,859 ) $ (145,161 ) $ 10,751,313 $ (3,331,200 ) $ (945,702 ) $ 889,948 $ 7,219,279 $ — $ 7,219,279 Adjustment from adoption of new accounting standard update — — — — — — — (5,973 ) (5,973 ) — (5,973 ) Net income (loss) — — — — — — — 118,078 118,078 (331 ) 117,747 Other comprehensive income — — — — — — 3,337 — 3,337 7 3,344 Issuance of common stock and release of treasury stock for employee equity awards 360,464 — 1,706 360 27,233 — — — 27,593 — 27,593 Issuance of common stock for equity offering 2,985,575 3 — — 1,213,431 — — — 1,213,434 — 1,213,434 Dividend distribution on common stock, $2.46 per share — — — — — (198,933 ) — — (198,933 ) — (198,933 ) Settlement of accrued dividends on vested equity awards — — — — 284 (387 ) — — (103 ) — (103 ) Accrued dividends on unvested equity awards — — — — — (2,395 ) — — (2,395 ) — (2,395 ) Stock-based compensation, net of estimated forfeitures — — — — 50,795 — — — 50,795 — 50,795 Balance as of March 31, 2019 84,465,156 84 (395,153 ) (144,801 ) 12,043,056 (3,532,915 ) (942,365 ) 1,002,053 8,425,112 (324 ) 8,424,788 Net income — — — — — — — 143,527 143,527 325 143,852 Other comprehensive loss — — — — — — (16,078 ) — (16,078 ) (14 ) (16,092 ) Issuance of common stock and release of treasury stock for employee equity awards 26,435 — 359 76 (76 ) — — — — — — Issuance of common stock under ATM Program 722,361 1 — — 348,120 — — — 348,121 — 348,121 Dividend distribution on common stock, $2.46 per share — — — — — (207,949 ) — — (207,949 ) — (207,949 ) Settlement of accrued dividends on vested equity awards — — — — 12 (33 ) — — (21 ) — (21 ) Accrued dividends on unvested equity awards — — — — — (2,972 ) — — (2,972 ) — (2,972 ) AOCI (Loss) Retained Earnings Equinix Stockholders' Equity Non-controlling Interests Total Stockholders' Equity Common Stock Treasury Stock Additional Paid-in Capital Accumulated Shares Amount Shares Amount Stock-based compensation, net of estimated forfeitures — — — — 59,502 — — — 59,502 — 59,502 Balance as of June 30, 2019 85,213,952 85 (394,794 ) (144,725 ) 12,450,614 (3,743,869 ) (958,443 ) 1,145,580 8,749,242 (13 ) 8,749,229 Net income — — — — — — — 120,850 120,850 (39 ) 120,811 Other comprehensive loss — — — — — — (81,793 ) — (81,793 ) (28 ) (81,821 ) Issuance of common stock and release of treasury stock for employee equity awards 276,497 1 2,010 424 24,000 — — — 24,425 — 24,425 Issuance of common stock under ATM Program 181,194 — — — 99,421 — — — 99,421 — 99,421 Dividend distribution on common stock, $2.46 per share — — — — — (209,226 ) — — (209,226 ) — (209,226 ) Settlement of accrued dividends on vested equity awards — — — — 12 (230 ) — — (218 ) — (218 ) Accrued dividends on unvested equity awards — — — — — (2,993 ) — — (2,993 ) — (2,993 ) Stock-based compensation, net of estimated forfeitures — — — — 61,403 — — — 61,403 — 61,403 Balance as of September 30, 2019 85,671,643 $ 86 (392,784 ) $ (144,301 ) $ 12,635,450 $ (3,956,318 ) $ (1,040,236 ) $ 1,266,430 $ 8,761,111 $ (80 ) $ 8,761,031 Additional Paid-in Capital Accumulated AOCI (Loss) Retained Equinix Common Stock Treasury Stock Shares Amount Shares Amount Balance as of December 31, 2017 79,440,404 $ 79 (402,342 ) $ (146,320 ) $ 10,121,323 $ (2,592,792 ) $ (785,189 ) $ 252,689 $ 6,849,790 Adjustment from adoption of new accounting standard update — — — — — — (2,124 ) 271,900 269,776 Net income — — — — — — — 62,894 62,894 Other comprehensive income — — — — — — 69,144 — 69,144 Issuance of common stock and release of treasury stock for employee equity awards 416,512 1 2,957 625 25,221 — — — 25,847 Dividend distribution on common stock, $2.28 per share — — — — — (180,640 ) — — (180,640 ) Settlement of accrued dividends on vested equity awards — — — — 1,795 (530 ) — — 1,265 Accrued dividends on unvested equity awards — — — — — (2,216 ) — — (2,216 ) Stock-based compensation, net of estimated forfeitures — — — — 44,691 — — — 44,691 Balance as of March 31, 2018 79,856,916 80 (399,385 ) (145,695 ) 10,193,030 (2,776,178 ) (718,169 ) 587,483 7,140,551 Net income — — — — — — — 67,618 67,618 Other comprehensive loss — — — — — — (159,825 ) — (159,825 ) Issuance of common stock and release of treasury stock for employee equity awards 31,068 — 297 63 (50 ) — — — 13 Issuance of common stock under ATM Program 19,100 — — — 8,202 — — — 8,202 Dividend distribution on common stock, $2.28 per share — — — — — (181,207 ) — — (181,207 ) Settlement of accrued dividends on vested equity awards — — — — 103 (43 ) — — 60 Accrued dividends on unvested equity awards — — — — — (2,755 ) — — (2,755 ) Stock-based compensation, net of estimated forfeitures — — — — 51,870 — — — 51,870 Balance as of June 30, 2018 79,907,084 80 (399,088 ) (145,632 ) 10,253,155 (2,960,183 ) (877,994 ) 655,101 6,924,527 Net income — — — — — — — 124,825 124,825 Other comprehensive loss — — — — — — (44,154 ) — (44,154 ) Issuance of common stock and release of treasury stock for employee equity awards 268,086 — 1,968 416 23,827 — — — 24,243 Issuance of common stock under ATM Program 612,422 1 — — 265,671 — — — 265,672 Dividend distribution on common stock, $2.28 per share — — — — — (182,304 ) — — (182,304 ) Settlement of accrued dividends on vested equity awards — — — — 367 (263 ) — — 104 Accrued dividends on unvested equity awards — — — — — (2,680 ) — — (2,680 ) Stock-based compensation, net of estimated forfeitures — — — — 49,940 — — — 49,940 Balance as of September 30, 2018 80,787,592 $ 81 (397,120 ) $ (145,216 ) $ 10,592,960 $ (3,145,430 ) $ (922,148 ) $ 779,926 $ 7,160,173 |
Schedule of changes in accumulated other comprehensive loss | The changes in accumulated other comprehensive loss, net of tax, by components are as follows (in thousands): Balance as of Net Change Balance as of Foreign currency translation adjustment ("CTA") loss $ (998,603 ) $ (341,484 ) $ (1,340,087 ) Unrealized gain on cash flow hedges (1) 19,480 19,086 38,566 Net investment hedge CTA gain (1) 34,325 227,890 262,215 Net actuarial loss on defined benefit plans (2) (904 ) (26 ) (930 ) Accumulated other comprehensive loss attributable to Equinix $ (945,702 ) $ (94,534 ) $ (1,040,236 ) (1) Refer to Note 6 for a discussion of the amounts reclassified from accumulated other comprehensive loss to net income. (2) The Company has a defined benefit pension plan covering all employees in one country where such plan is mandated by law. The Company does not have any defined benefit plans in any other countries. The unamortized gain (loss) on defined benefit plans includes gains or losses resulting from a change in the value of either the projected benefit obligation or the plan assets resulting from a change in an actuarial assumption, net of amortization. |
Schedule of stock-based compensation expense by operating expense category | The following table presents, by operating expense category, the Company's stock-based compensation expense recognized in the Company's condensed consolidated statements of operations (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Cost of revenues $ 7,104 $ 4,600 $ 18,616 $ 13,106 Sales and marketing 15,794 14,166 44,252 39,980 General and administrative 40,973 28,822 111,545 86,763 Total $ 63,871 $ 47,588 $ 174,413 $ 139,849 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of revenue information disaggregated by service lines and geographic areas | The following tables present revenue information disaggregated by product lines and geographic areas (in thousands): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Americas EMEA Asia-Pacific Total Americas EMEA Asia-Pacific Total Colocation (1) $ 441,596 $ 357,201 $ 214,304 $ 1,013,101 $ 1,325,663 $ 1,036,121 $ 637,703 $ 2,999,487 Interconnection 146,212 41,063 39,495 226,770 427,235 117,202 114,148 658,585 Managed infrastructure 24,082 27,651 22,553 74,286 68,777 85,136 66,940 220,853 Other (1) 3,392 1,787 — 5,179 14,723 6,561 — 21,284 Recurring revenues 615,282 427,702 276,352 1,319,336 1,836,398 1,245,020 818,791 3,900,209 Non-recurring revenues 29,993 30,438 17,043 77,474 97,663 97,635 49,498 244,796 Total $ 645,275 $ 458,140 $ 293,395 $ 1,396,810 $ 1,934,061 $ 1,342,655 $ 868,289 $ 4,145,005 (1) Includes some leasing and hedging activities. Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Americas EMEA Asia-Pacific Total Americas EMEA Asia-Pacific Total Colocation (1) $ 433,828 $ 305,072 $ 191,143 $ 930,043 $ 1,294,848 $ 886,651 $ 543,513 $ 2,725,012 Interconnection 134,159 34,640 33,318 202,117 395,132 103,586 96,011 594,729 Managed infrastructure 18,698 28,387 20,848 67,933 55,525 88,804 64,212 208,541 Other (1) 5,161 2,552 — 7,713 11,220 6,682 — 17,902 Recurring revenues 591,846 370,651 245,309 1,207,806 1,756,725 1,085,723 703,736 3,546,184 Non-recurring revenues 33,838 26,104 16,003 75,945 89,861 73,830 51,696 215,387 Total $ 625,684 $ 396,755 $ 261,312 $ 1,283,751 $ 1,846,586 $ 1,159,553 $ 755,432 $ 3,761,571 (1) Includes some leasing and hedging activities. |
Schedule of Adjusted EBITDA | The Company defines adjusted EBITDA as income from operations excluding depreciation, amortization, accretion, stock-based compensation expense, restructuring charges, impairment charges, transaction costs and gain on asset sales as presented below (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Adjusted EBITDA: Americas $ 306,656 $ 296,003 $ 923,546 $ 881,507 EMEA 212,518 179,797 621,235 516,790 Asia-Pacific 155,528 136,726 467,086 397,748 Total adjusted EBITDA 674,702 612,526 2,011,867 1,796,045 Depreciation, amortization and accretion expense (321,746 ) (306,318 ) (957,001 ) (921,611 ) Stock-based compensation expense (63,871 ) (47,588 ) (174,413 ) (139,849 ) Impairment charges (1,189 ) — (16,023 ) — Transaction costs (2,991 ) 1,120 (8,236 ) (33,932 ) Gain on asset sale 463 6,013 463 6,013 Income from operations $ 285,368 $ 265,753 $ 856,657 $ 706,666 |
Segment Disclosures | The Company also provides the following additional segment disclosures (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Depreciation and amortization: Americas $ 168,999 $ 157,458 $ 503,013 $ 474,958 EMEA 86,607 88,813 258,752 270,585 Asia-Pacific 66,285 59,455 192,528 175,082 Total $ 321,891 $ 305,726 $ 954,293 $ 920,625 Capital expenditures: Americas $ 203,281 $ 226,127 $ 521,399 $ 573,733 EMEA 171,293 238,372 506,499 615,140 Asia-Pacific 182,248 81,042 337,062 226,636 Total $ 556,822 $ 545,541 $ 1,364,960 $ 1,415,509 |
Segment Long-Lived Assets | The Company's long-lived assets are located in the following geographic areas as of (in thousands): September 30, December 31, Americas $ 5,146,358 $ 5,010,507 EMEA 3,610,597 3,726,596 Asia-Pacific 2,472,242 2,288,917 Total long-lived assets $ 11,229,197 $ 11,026,020 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Narrative (Detail) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Accounting Policies [Abstract] | ||
Effective income tax rate, continuing operations | 27.90% | 14.00% |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Effects of Adopting Topic 842 (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Assets | |||
Other current assets | $ 305,246 | $ 258,908 | $ 274,857 |
Property, plant and equipment, net | 11,229,197 | 10,732,909 | 11,026,020 |
Operating lease right-of-use assets | 1,483,491 | 1,468,762 | 0 |
Intangible assets, net | 2,127,843 | 2,310,091 | 2,333,296 |
Other assets | 499,632 | 469,784 | 533,252 |
Liabilities | |||
Current portion of operating lease liabilities | 137,002 | 144,405 | 0 |
Current portion of finance lease liabilities | 65,518 | 70,795 | 0 |
Current portion of capital lease and other financing obligations | 0 | 77,844 | |
Other current liabilities | 119,976 | 120,540 | 126,995 |
Operating lease liabilities, less current portion | 1,333,901 | 1,312,262 | 0 |
Finance lease liabilities, less current portion | 1,301,482 | 1,165,188 | 0 |
Capital lease and other financing obligations, less current portion | 0 | 1,441,077 | |
Other liabilities | 558,912 | 541,491 | 629,763 |
Equity | |||
Retained Earnings | $ 1,266,430 | 883,975 | $ 889,948 |
Topic 842 | |||
Assets | |||
Other current assets | (15,949) | ||
Property, plant and equipment, net | (293,111) | ||
Operating lease right-of-use assets | 1,468,762 | ||
Intangible assets, net | (23,205) | ||
Other assets | (63,468) | ||
Liabilities | |||
Current portion of operating lease liabilities | 144,405 | ||
Current portion of finance lease liabilities | 70,795 | ||
Current portion of capital lease and other financing obligations | (77,844) | ||
Other current liabilities | (6,455) | ||
Operating lease liabilities, less current portion | 1,312,262 | ||
Finance lease liabilities, less current portion | 1,165,188 | ||
Capital lease and other financing obligations, less current portion | (1,441,077) | ||
Other liabilities | (88,272) | ||
Equity | |||
Retained Earnings | $ (5,973) |
Revenue - Opening and Closing B
Revenue - Opening and Closing Balances (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |||
Accounts receivable, net | $ 746,571 | $ 630,119 | $ 630,119 |
Increase (decrease) in accounts receivables | 116,452 | ||
Contract asset, current | 9,491 | 9,778 | |
Increase (decrease) in contract asset, current | (287) | ||
Contract asset, non-current | 25,685 | 16,396 | |
Increase (decrease) in contract asset, non-current | 9,289 | ||
Deferred revenue, current | 76,892 | 73,142 | |
Increase (decrease) in deferred revenue, current | 3,750 | ||
Deferred revenue, non-current | 46,798 | $ 46,641 | |
Increase (decrease) in deferred revenue, non-current | $ 157 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue, revenue recognized | $ 76.1 |
Revenue, remaining performance obligation | $ 7,400 |
Revenue, requirement of payment, terms | P24M |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||||||
Net income | $ 120,811 | $ 143,852 | $ 117,747 | $ 124,825 | $ 382,410 | $ 255,337 | ||
Net loss attributable to non-controlling interests | 39 | 0 | 45 | 0 | ||||
Net income attributable to Equinix | $ 120,850 | $ 124,825 | $ 67,618 | $ 62,894 | $ 382,455 | $ 255,337 | ||
Weighted-average shares used to calculate basic EPS (in shares) | 85,012 | 79,872 | 83,753 | 79,533 | ||||
Effect of dilutive securities: | ||||||||
Employee equity awards (in shares) | 559 | 411 | 470 | 423 | ||||
Weighted-average shares used to calculate diluted EPS (in shares) | 85,571 | 80,283 | 84,223 | 79,956 | ||||
Basic EPS (in dollars per share) | $ 1.42 | $ 1.56 | $ 4.57 | $ 3.21 | ||||
Diluted EPS (in dollars per share) | $ 1.41 | $ 1.55 | $ 4.54 | $ 3.19 |
Earnings Per Share - Anti-dilut
Earnings Per Share - Anti-dilutive Potential Shares of Common Stock Excluded from Computation of Earnings Per Share (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive potential shares of common stock excluded from computation of earnings per share (in shares) | 17 | 290 | 22 | 248 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Detail) $ in Thousands, € in Millions, $ in Millions | Apr. 18, 2019EUR (€) | Apr. 18, 2019USD ($) | Apr. 18, 2018AUD ($)metro_areadata_center | Apr. 18, 2018USD ($)metro_areadata_center | Apr. 02, 2018USD ($) | Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2018USD ($) |
Business Acquisition [Line Items] | |||||||||||||
Financing obligations, settled | $ 89,655 | ||||||||||||
Revenues | $ 1,396,810 | $ 1,283,751 | $ 4,145,005 | 3,761,571 | |||||||||
Net income | $ 120,850 | 124,825 | $ 67,618 | $ 62,894 | $ 382,455 | 255,337 | |||||||
Switch Datacenters' AMS1 [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash consideration for acquisition | € 30.6 | $ 34,300 | |||||||||||
Metronode [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash consideration for acquisition | $ 1,034 | $ 804,600 | |||||||||||
Data center sites | data_center | 10 | 10 | |||||||||||
Number of data centers, metro areas | metro_area | 6 | 6 | |||||||||||
Adjustment in accounting estimate increase (decrease) in deferred tax liabilities | $ (4,200) | $ 31,300 | |||||||||||
Adjustment in accounting estimate increase (decrease) in goodwill | $ (3,700) | 41,600 | |||||||||||
Adjustment in accounting estimate increase (decrease) in property, plant, and equipment | (10,100) | ||||||||||||
Adjustment in accounting estimate increase (decrease) in other assets | (10,000) | ||||||||||||
Adjustment in accounting estimate increase (decrease) in other liabilities | (9,700) | ||||||||||||
Adjustment in accounting estimate increase (decrease) in deferred tax assets | (4,100) | ||||||||||||
Adjustment in accounting estimate increase (decrease) in intangible assets | 4,800 | ||||||||||||
Metronode [Member] | Customer relationships [Member] | Measurement input, discount rate [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Measurement input | 0.073 | 0.073 | |||||||||||
Infomart Dallas [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash consideration for acquisition | $ 45,800 | ||||||||||||
Consideration transferred | 804,000 | ||||||||||||
Debt instrument, fair value | $ 758,200 | ||||||||||||
Interest rate (percent) | 5.00% | ||||||||||||
Financing obligations, settled | $ 170,300 | ||||||||||||
Other liabilities, settled | 1,900 | ||||||||||||
Extinguishment of debt, gain (loss) | $ (19,500) | ||||||||||||
Adjustment in accounting estimate increase (decrease) in goodwill | (6,200) | ||||||||||||
Adjustment in accounting estimate increase (decrease) in intangible assets | $ 4,600 | ||||||||||||
Infomart Dallas [Member] | Customer relationships [Member] | Measurement input, discount rate [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Measurement input | 0.082 | ||||||||||||
Infomart Dallas [Member] | Customer relationships [Member] | Measurement input, royalty rate [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Measurement input | 0.015 | ||||||||||||
Metronode and Infomart Dallas [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Revenues | $ 28,100 | 52,100 | |||||||||||
Net income | $ 2,700 |
Acquisitions - Preliminary Purc
Acquisitions - Preliminary Purchase Price Allocation (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Apr. 18, 2018 | Apr. 02, 2018 |
Allocation of purchase price consideration | ||||
Goodwill | $ 4,648,913 | $ 4,836,388 | ||
Metronode [Member] | ||||
Allocation of purchase price consideration | ||||
Cash and cash equivalents | $ 3,206 | |||
Accounts receivable | 8,318 | |||
Other current assets | 9,421 | |||
Property, plant, and equipment | 297,092 | |||
Intangible assets | 128,229 | |||
Goodwill | 410,188 | |||
Other assets | 44,373 | |||
Total assets acquired | 900,827 | |||
Accounts payable and accrued liabilities | (17,104) | |||
Other current liabilities | (2,038) | |||
Deferred tax liabilities | (31,281) | |||
Other liabilities | (45,851) | |||
Net assets acquired | 804,553 | |||
Indemnification assets | $ 44,400 | |||
Infomart Dallas [Member] | ||||
Allocation of purchase price consideration | ||||
Cash and cash equivalents | $ 17,432 | |||
Accounts receivable | 637 | |||
Other current assets | 395 | |||
Property, plant, and equipment | 362,023 | |||
Intangible assets | 65,847 | |||
Goodwill | 197,378 | |||
Other assets | 0 | |||
Total assets acquired | 643,712 | |||
Accounts payable and accrued liabilities | (5,056) | |||
Other current liabilities | (2,141) | |||
Deferred tax liabilities | 0 | |||
Other liabilities | (4,723) | |||
Net assets acquired | $ 631,792 |
Acquisitions - Intangible Asset
Acquisitions - Intangible Assets (Details) - USD ($) $ in Thousands | Apr. 18, 2018 | Apr. 02, 2018 |
Customer relationships [Member] | Metronode [Member] | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 128,229 | |
Estimated Useful Lives (Years) | 20 years | |
Weighted-average Estimated Useful Lives (Years) | 20 years | |
Customer relationships [Member] | Infomart Dallas [Member] | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 35,860 | |
Estimated Useful Lives (Years) | 20 years | |
Weighted-average Estimated Useful Lives (Years) | 20 years | |
In-place leases [Member] | Infomart Dallas [Member] | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 19,960 | |
Weighted-average Estimated Useful Lives (Years) | 6 years 9 months 18 days | |
In-place leases [Member] | Infomart Dallas [Member] | Minimum [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Useful Lives (Years) | 3 years 7 months 6 days | |
In-place leases [Member] | Infomart Dallas [Member] | Maximum [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Useful Lives (Years) | 7 years 6 months | |
Trade names [Member] | Infomart Dallas [Member] | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 9,552 | |
Estimated Useful Lives (Years) | 20 years | |
Weighted-average Estimated Useful Lives (Years) | 20 years | |
Favorable lease [Member] | Infomart Dallas [Member] | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 475 | |
Weighted-average Estimated Useful Lives (Years) | 7 years | |
Favorable lease [Member] | Infomart Dallas [Member] | Minimum [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Useful Lives (Years) | 3 years 7 months 6 days | |
Favorable lease [Member] | Infomart Dallas [Member] | Maximum [Member] | ||
Business Acquisition [Line Items] | ||
Estimated Useful Lives (Years) | 7 years 6 months |
Assets Held for Sale - Narrativ
Assets Held for Sale - Narrative (Details) - USD ($) $ in Thousands | Oct. 08, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Long Lived Assets Held-for-sale [Line Items] | |||||
Impairment charges | $ 1,189 | $ 0 | $ 16,023 | $ 0 | |
New York 12 [Member] | Held for sale [Member] | |||||
Long Lived Assets Held-for-sale [Line Items] | |||||
Impairment charges | $ 16,000 | ||||
Joint Venture [Member] | Equinix, Inc. [Member] | Subsequent event [Member] | |||||
Long Lived Assets Held-for-sale [Line Items] | |||||
Ownership interest | 20.00% | ||||
Joint Venture [Member] | GIC, Singapore Sovereign Wealth Fund [Member] | Subsequent event [Member] | |||||
Long Lived Assets Held-for-sale [Line Items] | |||||
Ownership interest | 80.00% |
Assets Held for Sale - Summary
Assets Held for Sale - Summary of Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | ||
Total assets held for sale | $ 379,473 | $ 0 |
Total liabilities held for sale | 52,092 | $ 0 |
Held for sale [Member] | ||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | ||
Operating lease right-of-use assets | 9,200 | |
Held for sale [Member] | London 10, Paris 8 and other Europe properties, and New York 12 [Member] | ||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | ||
Other current assets | 575 | |
Property, plant and equipment | 297,780 | |
Operating lease right-of-use assets | 9,187 | |
Goodwill | 67,950 | |
Intangible assets | 2,286 | |
Deferred tax assets | 1,571 | |
Other assets | 124 | |
Total assets held for sale | 379,473 | |
Current portion of operating lease liabilities | 754 | |
Current portion of finance lease liabilities | 167 | |
Operating lease liabilities, less current portion | 8,718 | |
Finance lease liabilities, less current portion | 41,099 | |
Deferred tax liabilities | 386 | |
Other liabilities | 968 | |
Total liabilities held for sale | $ 52,092 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Narrative (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Net gain (loss) to be reclassified during next 12 months | $ 43 | $ 21.4 |
Designated as hedging instruments [Member] | Cross-currency interest rate swap [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 750 | |
Not designated as hedging instruments [Member] | Foreign currency forward contract [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 1,950.6 | 1,500.4 |
Net investment hedges [Member] | Designated as hedging instruments [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | 3,961.7 | 4,139.8 |
Cash flow hedges [Member] | Foreign currency forward and option contracts [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 848.6 | $ 760.9 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net investment hedges [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) recognized in accumulated other comprehensive income | $ 27,213 | $ 179,056 | ||
Amount of gain or (loss) recognized in accumulated other comprehensive income | $ 188,896 | $ 227,879 | ||
Amount of gain or (loss) excluded from effectiveness testing included in income | 5,072 | 14,163 | ||
Amount of gain or (loss) recognized in earnings | 0 | 0 | ||
Cash flow hedges [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) excluded from effectiveness testing included in income | (538) | (467) | ||
Amount of gain or (loss) recognized in earnings | 3,860 | 10,290 | ||
Amount of gain or (loss) recognized in accumulated other comprehensive income | 19,461 | 26,422 | ||
Amount of gain or (loss) recognized in accumulated other comprehensive income | 8,246 | 49,836 | ||
Amount of gain or (loss) reclassified from accumulated other comprehensive income to income | 13,369 | 26,840 | ||
Amount of gain or (loss) reclassified from accumulated other comprehensive income to income | (1,853) | (17,071) | ||
Foreign currency debt [Member] | Net investment hedges [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) recognized in accumulated other comprehensive income | 151,825 | 181,431 | ||
Amount of gain or (loss) recognized in accumulated other comprehensive income | 27,213 | 179,056 | ||
Cross-currency interest rate swap [Member] | Net investment hedges [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) recognized in accumulated other comprehensive income | 30,505 | 36,331 | ||
Amount of gain or (loss) recognized in accumulated other comprehensive income | 0 | 0 | ||
Cross-currency interest rate swap [Member] | Net investment hedges [Member] | Excluded component [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) recognized in accumulated other comprehensive income | 0 | 0 | ||
Amount of gain or (loss) recognized in accumulated other comprehensive income | 6,566 | 10,117 | ||
Cross-currency interest rate swap [Member] | Net investment hedges [Member] | Interest expense [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) excluded from effectiveness testing included in income | 5,072 | 14,163 | ||
Amount of gain or (loss) recognized in earnings | 0 | 0 | ||
Foreign currency forward and option contracts [Member] | Cash flow hedges [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) recognized in accumulated other comprehensive income | 20,979 | 29,345 | ||
Amount of gain or (loss) recognized in accumulated other comprehensive income | 8,246 | 49,836 | ||
Foreign currency option contracts [Member] | Cash flow hedges [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) recognized in accumulated other comprehensive income | (1,518) | (2,923) | ||
Amount of gain or (loss) recognized in accumulated other comprehensive income | 0 | 0 | ||
Foreign currency option contracts [Member] | Cash flow hedges [Member] | Revenues [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) excluded from effectiveness testing included in income | (538) | (555) | ||
Amount of gain or (loss) recognized in earnings | 0 | 0 | ||
Foreign currency forward contract [Member] | Cash flow hedges [Member] | Costs and operating expenses [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income to income | (14,474) | (29,548) | ||
Amount of gain or (loss) reclassified from accumulated other comprehensive income to income | 1,441 | 17,542 | ||
Foreign currency forward contract [Member] | Cash flow hedges [Member] | Other income (expense) [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) excluded from effectiveness testing included in income | 0 | 88 | ||
Amount of gain or (loss) recognized in earnings | 3,860 | 10,290 | ||
Foreign currency forward contract [Member] | Cash flow hedges [Member] | Revenues [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income to income | $ 27,843 | $ 56,388 | ||
Amount of gain or (loss) reclassified from accumulated other comprehensive income to income | $ (3,294) | $ (34,613) |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivatives not designated as hedging instruments, gain (loss) | $ 77,253 | $ 17,381 | $ 97,015 | $ 61,583 |
Embedded derivatives [Member] | Revenues [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivatives not designated as hedging instruments, gain (loss) | 2,830 | 742 | 3,552 | 2,206 |
Economic hedge of embedded derivatives [Member] | Revenues [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivatives not designated as hedging instruments, gain (loss) | (3,221) | (422) | (2,680) | (1,360) |
Foreign currency forward contract [Member] | Other income (expense) [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivatives not designated as hedging instruments, gain (loss) | $ 77,644 | $ 17,061 | $ 96,143 | $ 60,737 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities - Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative assets | $ 142,251 | $ 73,074 |
Derivative liabilities | 2,036 | 9,740 |
Designated as hedging instruments [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative assets | 105,850 | 38,606 |
Derivative liabilities | 0 | 865 |
Designated as hedging instruments [Member] | Foreign currency forward and option contracts [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative assets | 59,401 | 38,606 |
Derivative liabilities | 0 | 865 |
Designated as hedging instruments [Member] | Cross-currency interest rate swap [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative assets | 46,449 | 0 |
Derivative liabilities | 0 | 0 |
Not designated as hedging instruments [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative assets | 36,401 | 34,468 |
Derivative liabilities | 2,036 | 8,875 |
Not designated as hedging instruments [Member] | Embedded derivatives [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative assets | 7,131 | 4,656 |
Derivative liabilities | 1,336 | 2,426 |
Not designated as hedging instruments [Member] | Economic hedge of embedded derivatives [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative assets | 492 | 525 |
Derivative liabilities | 697 | 180 |
Not designated as hedging instruments [Member] | Foreign currency forward contract [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative assets | 28,778 | 29,287 |
Derivative liabilities | $ 3 | $ 6,269 |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities - Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative assets | ||
Gross Amounts | $ 154,394 | $ 73,074 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts | 154,394 | 73,074 |
Gross Amounts not Offset in the Balance Sheet | (6,307) | (6,517) |
Net | 148,087 | 66,557 |
Derivative liabilities | ||
Gross Amounts | 8,203 | 9,740 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts | 8,203 | 9,740 |
Gross Amounts not Offset in the Balance Sheet | (6,307) | (6,517) |
Net | $ 1,896 | $ 3,223 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Publicly traded equity securities | $ 2,647 | $ 1,717 |
Derivative instruments | 142,251 | 73,074 |
Total financial assets | 1,564,218 | 683,780 |
Liabilities: | ||
Derivative instruments | 2,036 | 9,740 |
Cash [Member] | ||
Assets: | ||
Cash and cash equivalents | 832,235 | 486,648 |
Money market and deposit accounts [Member] | ||
Assets: | ||
Cash and cash equivalents | 570,165 | 119,518 |
Certificates of deposit [Member] | ||
Assets: | ||
Cash and cash equivalents | 16,920 | 2,823 |
Fair value, inputs, Level 1 [Member] | ||
Assets: | ||
Publicly traded equity securities | 2,647 | 1,717 |
Derivative instruments | 0 | 0 |
Total financial assets | 1,405,047 | 607,883 |
Liabilities: | ||
Derivative instruments | 0 | 0 |
Fair value, inputs, Level 1 [Member] | Cash [Member] | ||
Assets: | ||
Cash and cash equivalents | 832,235 | 486,648 |
Fair value, inputs, Level 1 [Member] | Money market and deposit accounts [Member] | ||
Assets: | ||
Cash and cash equivalents | 570,165 | 119,518 |
Fair value, inputs, Level 1 [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Fair value, inputs, Level 2 [Member] | ||
Assets: | ||
Publicly traded equity securities | 0 | 0 |
Derivative instruments | 142,251 | 73,074 |
Total financial assets | 159,171 | 75,897 |
Liabilities: | ||
Derivative instruments | 2,036 | 9,740 |
Fair value, inputs, Level 2 [Member] | Cash [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Fair value, inputs, Level 2 [Member] | Money market and deposit accounts [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Fair value, inputs, Level 2 [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Cash and cash equivalents | $ 16,920 | $ 2,823 |
Leases - Narrative (Detail)
Leases - Narrative (Detail) $ in Thousands, ₩ in Millions, ¥ in Millions, $ in Millions, $ in Millions | 9 Months Ended | |||||||||
Sep. 30, 2019SGD ($) | Sep. 30, 2019JPY (¥) | Sep. 30, 2019KRW (₩) | Sep. 30, 2019USD ($) | Aug. 31, 2019 | Jul. 31, 2019 | Jun. 30, 2019HKD ($) | Jun. 30, 2019USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Lessee, Lease, Description [Line Items] | ||||||||||
Operating lease right-of-use assets | $ 1,483,491 | $ 1,468,762 | $ 0 | |||||||
Liability, operating lease | 1,470,903 | |||||||||
Lease liability, finance lease | 1,367,000 | |||||||||
Lease liability | 41,800 | |||||||||
Hong Kong 4 Data Center [Member] | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Operating lease right-of-use assets | $ 317.3 | $ 40,600 | ||||||||
Liability, operating lease | $ 317.3 | $ 40,600 | ||||||||
Seoul 1 Data Center [Member] | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Right-of-use asset, finance lease | ₩ 35,747 | 29,900 | ||||||||
Finance lease, initial term | 5 years | |||||||||
Finance lease, renewal term | 5 years | |||||||||
Lease liability, finance lease | ₩ 34,804 | 29,100 | ||||||||
Tokyo 11 Data Center [Member] | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Right-of-use asset, finance lease | ¥ 6,922.3 | 64,000 | ||||||||
Lease liability, finance lease | ¥ 6,922.3 | 64,000 | ||||||||
Singapore 4 Data Center [Member] | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Right-of-use asset, finance lease | $ 75.5 | 54,600 | ||||||||
Operating lease right-of-use assets | 48.5 | 35,100 | ||||||||
Liability, operating lease | 48.5 | 35,100 | ||||||||
Lease liability, finance lease | $ 75.5 | 54,600 | ||||||||
Silicon Valley 3 Data Center [Member] | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Finance lease, renewal term | 12 years | |||||||||
Liability, operating lease | 13,100 | |||||||||
Lease liability, finance lease | 39,900 | |||||||||
Operating lease, renewal term | 12 years | |||||||||
Silicon Valley 3 Data Center, Lease Extension [Member] | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Right-of-use asset, finance lease | 39,900 | |||||||||
Operating lease right-of-use assets | 13,100 | |||||||||
Property, plant and equipment [Member] | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Right-of-use asset, finance lease | 1,135,000 | |||||||||
Finance lease, amortization | $ 468,700 | |||||||||
Minimum [Member] | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Lease not yet commenced, remaining lease term | 10 years | |||||||||
Maximum [Member] | ||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||
Lease not yet commenced, remaining lease term | 25 years |
Leases - Lease Expenses (Detail
Leases - Lease Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Finance lease cost | ||
Amortization of right-of-use assets | $ 21,313 | $ 61,210 |
Interest on lease liabilities | 28,039 | 82,673 |
Total finance lease cost | 49,352 | 143,883 |
Operating lease cost | 57,946 | 164,505 |
Total lease cost | $ 107,298 | $ 308,388 |
Leases - Other Information (Det
Leases - Other Information (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from finance leases | $ 79,140 |
Operating cash flows from operating leases | 157,106 |
Financing cash flows from finance leases | 62,785 |
Right-of-use assets obtained in exchange for lease obligations | |
Finance leases | 196,725 |
Operating leases | $ 143,144 |
Weighted-average remaining lease term - finance leases | 15 years |
Weighted-average remaining lease term - operating leases | 13 years |
Weighted-average discount rate - finance leases | 9.00% |
Weighted-average discount rate - operating leases | 4.00% |
Held for sale [Member] | |
Long Lived Assets Held-for-sale [Line Items] | |
Financing lease right-of-use assets | $ 36,900 |
Operating lease right-of-use assets | $ 9,200 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Operating Leases | |||
2019 (3 months remaining) | $ 39,216 | ||
2020 | 200,432 | ||
2021 | 188,811 | ||
2022 | 181,250 | ||
2023 | 167,098 | ||
Thereafter | 1,233,604 | ||
Total lease payments | 2,010,411 | ||
Plus amount representing residual property value | 0 | ||
Less imputed interest | (539,508) | ||
Total | 1,470,903 | ||
Finance Leases | |||
2019 (3 months remaining) | 39,309 | ||
2020 | 168,410 | ||
2021 | 168,192 | ||
2022 | 168,745 | ||
2023 | 169,689 | ||
Thereafter | 1,752,663 | ||
Total lease payments | 2,467,008 | ||
Plus amount representing residual property value | 18,436 | ||
Less imputed interest | (1,118,444) | ||
Total | 1,367,000 | ||
Total | |||
2019 (3 months remaining) | 78,525 | ||
2020 | 368,842 | ||
2021 | 357,003 | ||
2022 | 349,995 | ||
2023 | 336,787 | ||
Thereafter | 2,986,267 | ||
Total lease payments | 4,477,419 | ||
Plus amount representing residual property value | 18,436 | ||
Less imputed interest | (1,657,952) | ||
Total | $ 2,837,903 | ||
Total Capital Lease and Other Financing Obligations | |||
Less current portion | $ 0 | $ (77,844) | |
Total | $ 0 | 1,441,077 | |
Operating Leases | |||
2019 | 187,280 | ||
2020 | 179,515 | ||
2021 | 166,159 | ||
2022 | 158,115 | ||
2023 | 147,677 | ||
Thereafter | 1,130,494 | ||
Total minimum lease payments | 1,969,240 | ||
Capital Lease Obligations [Member] | |||
Total Capital Lease and Other Financing Obligations | |||
2019 | 103,859 | ||
2020 | 97,326 | ||
2021 | 95,414 | ||
2022 | 94,954 | ||
2023 | 95,463 | ||
Thereafter | 878,755 | ||
Total minimum lease payments | 1,365,771 | ||
Plus amount representing residual property value | 0 | ||
Less amount representing interest | (602,026) | ||
Present value of net minimum lease payments | 763,745 | ||
Less current portion | (43,498) | ||
Total | 720,247 | ||
Other Financing Obligations [Member] | |||
Total Capital Lease and Other Financing Obligations | |||
2019 | 80,292 | ||
2020 | 73,266 | ||
2021 | 73,672 | ||
2022 | 73,856 | ||
2023 | 69,423 | ||
Thereafter | 722,496 | ||
Total minimum lease payments | 1,093,005 | ||
Plus amount representing residual property value | 389,643 | ||
Less amount representing interest | (727,472) | ||
Present value of net minimum lease payments | 755,176 | ||
Less current portion | (34,346) | ||
Total | 720,830 | ||
Capital Lease and Other Financing Obligations Total [Member] | |||
Total Capital Lease and Other Financing Obligations | |||
2019 | 184,151 | ||
2020 | 170,592 | ||
2021 | 169,086 | ||
2022 | 168,810 | ||
2023 | 164,886 | ||
Thereafter | 1,601,251 | ||
Total minimum lease payments | 2,458,776 | ||
Plus amount representing residual property value | 389,643 | ||
Less amount representing interest | (1,329,498) | ||
Present value of net minimum lease payments | 1,518,921 | ||
Less current portion | (77,844) | ||
Total | $ 1,441,077 |
Debt Facilities - Mortgage and
Debt Facilities - Mortgage and Loans Payable (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long term debt, gross | $ 1,289,455 | $ 1,388,524 |
Less the amount representing debt discount and debt issuance cost | (5,195) | (6,614) |
Add amount representing unamortized mortgage premium | 1,736 | 1,882 |
Loans payable current and non current | 1,285,996 | 1,383,792 |
Less current portion | (70,789) | (73,129) |
Loans payable, noncurrent | 1,215,207 | 1,310,663 |
Term loans [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt, gross | 1,249,194 | 1,344,482 |
Mortgage payable and other loans payable [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt, gross | $ 40,261 | $ 44,042 |
Debt Facilities - Senior Notes
Debt Facilities - Senior Notes (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long term debt, gross | $ 1,289,455 | $ 1,388,524 |
Add amount representing unamortized debt premium | 1,736 | 1,882 |
Total long term debt | 9,489,241 | |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt, gross | 8,198,050 | 8,500,125 |
Less amount representing unamortized debt issuance cost | (64,577) | (75,372) |
Add amount representing unamortized debt premium | 2,310 | 5,031 |
Total long term debt | 8,135,783 | 8,429,784 |
Less current portion | (300,466) | (300,999) |
Total | $ 7,835,317 | 8,128,785 |
Senior Notes [Member] | 5.000% Infomart Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 5.00% | |
Long term debt, gross | $ 600,000 | $ 750,000 |
Effective interest rate | 4.43% | 4.40% |
Senior Notes [Member] | 5.375% Senior Notes due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 5.375% | |
Long term debt, gross | $ 750,000 | $ 750,000 |
Effective interest rate | 5.56% | 5.56% |
Senior Notes [Member] | 5.375% Senior Notes due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 5.375% | |
Long term debt, gross | $ 1,000,000 | $ 1,000,000 |
Effective interest rate | 5.51% | 5.51% |
Senior Notes [Member] | 2.875% Euro Senior Notes due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 2.875% | |
Long term debt, gross | $ 817,650 | $ 859,125 |
Effective interest rate | 3.08% | 3.08% |
Senior Notes [Member] | 5.750% Senior Notes due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 5.75% | |
Long term debt, gross | $ 500,000 | $ 500,000 |
Effective interest rate | 5.88% | 5.88% |
Senior Notes [Member] | 2.875% Euro Senior Notes due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 2.875% | |
Long term debt, gross | $ 1,090,200 | $ 1,145,500 |
Effective interest rate | 3.04% | 3.04% |
Senior Notes [Member] | 5.875% Senior Notes due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 5.875% | |
Long term debt, gross | $ 1,100,000 | $ 1,100,000 |
Effective interest rate | 6.03% | 6.03% |
Senior Notes [Member] | 2.875% Euro Senior Notes due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 2.875% | |
Long term debt, gross | $ 1,090,200 | $ 1,145,500 |
Effective interest rate | 3.04% | 3.04% |
Senior Notes [Member] | 5.375% Senior Notes due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 5.375% | |
Long term debt, gross | $ 1,250,000 | $ 1,250,000 |
Effective interest rate | 5.51% | 5.51% |
Debt Facilities - Summary of Ma
Debt Facilities - Summary of Maturities of Debt Instruments (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2019 (3 months remaining) | $ 167,978 |
2020 | 370,980 |
2021 | 220,736 |
2022 | 1,876,563 |
2023 | 1,002,515 |
Thereafter | 5,850,469 |
Total long term debt | $ 9,489,241 |
Debt Facilities - Fair Value of
Debt Facilities - Fair Value of Debt Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Mortgage and loans payable | $ 1,296,497 | $ 1,389,632 |
Senior notes | $ 8,561,823 | $ 8,422,211 |
Senior Notes [Member] | 5.000% Infomart Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 5.00% |
Debt Facilities - Interest Char
Debt Facilities - Interest Charges (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Debt Disclosure [Abstract] | ||||
Interest expense | $ 118,674 | $ 130,566 | $ 362,067 | $ 391,516 |
Interest capitalized | 8,424 | 6,206 | 24,188 | 13,004 |
Interest charges incurred | 127,098 | 136,772 | 386,255 | 404,520 |
Interest paid, net of capitalized interest | $ 144,800 | $ 146,700 | $ 388,500 | $ 362,000 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) $ in Billions | Sep. 30, 2019USD ($) |
Capital expenditures [Member] | |
Other Commitments [Line Items] | |
Purchase commitments | $ 0.8 |
Miscellaneous purchase commitments [Member] | |
Other Commitments [Line Items] | |
Purchase commitments | $ 1 |
Stockholders' Equity - Rollforw
Stockholders' Equity - Rollforward (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
Mar. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2019 | Jan. 01, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning balance (in shares) | 80,722,258 | 80,722,258 | |||||||||
Beginning balance | $ 8,749,229 | $ 8,424,788 | $ 7,219,279 | $ 7,219,279 | |||||||
Beginning balance | 7,219,279 | $ 6,924,527 | $ 7,140,551 | $ 6,849,790 | 7,219,279 | $ 6,849,790 | |||||
Adjustment from adoption of new accounting standard update | $ (5,973) | $ 269,776 | |||||||||
Net income (loss) | 120,811 | 143,852 | 117,747 | 124,825 | 382,410 | 255,337 | |||||
Net income | 120,850 | 124,825 | 67,618 | 62,894 | 382,455 | 255,337 | |||||
Other comprehensive income | (81,821) | (16,092) | 3,344 | (44,154) | (159,825) | 69,144 | $ (94,569) | (134,835) | |||
Issuance of common stock for equity offering | 24,425 | 0 | 27,593 | 24,243 | 13 | 25,847 | |||||
Issuance of common stock (in shares) | 2,985,575 | ||||||||||
Issuance of common stock | $ 1,213,400 | 1,213,434 | |||||||||
Dividend distribution on common stock | (209,226) | (207,949) | (198,933) | (182,304) | (181,207) | (180,640) | |||||
Settlement of accrued dividends on vested equity awards | (218) | (21) | (103) | 104 | 60 | 1,265 | |||||
Accrued dividends on unvested equity awards | (2,993) | (2,972) | (2,395) | (2,680) | (2,755) | (2,216) | |||||
Stock-based compensation, net of estimated forfeitures | $ 61,403 | 59,502 | 50,795 | 49,940 | 51,870 | 44,691 | |||||
Ending balance (in shares) | 85,278,859 | 85,278,859 | |||||||||
Ending balance | $ 8,424,788 | $ 8,761,031 | 8,749,229 | $ 8,424,788 | $ 8,761,031 | ||||||
Ending balance | 8,761,111 | 7,160,173 | 6,924,527 | $ 7,140,551 | $ 8,761,111 | $ 7,160,173 | |||||
ATM Program [Member] | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Issuance of common stock | $ 99,421 | $ 348,121 | $ 265,672 | $ 8,202 | |||||||
Common Stock [Member] | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning balance (in shares) | 85,213,952 | 84,465,156 | 81,119,117 | 79,907,084 | 79,856,916 | 79,440,404 | 81,119,117 | 79,440,404 | |||
Beginning balance | $ 85 | $ 84 | $ 81 | $ 81 | |||||||
Beginning balance | $ 80 | $ 80 | $ 79 | $ 79 | |||||||
Issuance of common stock for equity offering (in shares) | 276,497 | 26,435 | 360,464 | 268,086 | 31,068 | 416,512 | |||||
Issuance of common stock for equity offering | $ 1 | $ 1 | |||||||||
Issuance of common stock (in shares) | 2,985,575 | ||||||||||
Issuance of common stock | $ 3 | ||||||||||
Ending balance (in shares) | 84,465,156 | 85,671,643 | 85,213,952 | 84,465,156 | 80,787,592 | 79,907,084 | 79,856,916 | 85,671,643 | 80,787,592 | ||
Ending balance | $ 84 | $ 86 | $ 85 | $ 84 | $ 86 | ||||||
Ending balance | $ 81 | $ 80 | $ 80 | $ 81 | |||||||
Common Stock [Member] | ATM Program [Member] | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Issuance of common stock (in shares) | 181,194 | 722,361 | 612,422 | 19,100 | |||||||
Issuance of common stock | $ 1 | $ 1 | |||||||||
Treasury Stock [Member] | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning balance (in shares) | (394,794) | (395,153) | (396,859) | (399,088) | (399,385) | (402,342) | (396,859) | (402,342) | |||
Beginning balance | $ (144,725) | $ (144,801) | $ (145,161) | $ (145,161) | |||||||
Beginning balance | $ (145,632) | $ (145,695) | $ (146,320) | $ (146,320) | |||||||
Issuance of common stock for equity offering (in shares) | 2,010 | 359 | 1,706 | 1,968 | 297 | 2,957 | |||||
Issuance of common stock for equity offering | $ 424 | $ 76 | $ 360 | $ 416 | $ 63 | $ 625 | |||||
Ending balance (in shares) | (395,153) | (392,784) | (394,794) | (395,153) | (397,120) | (399,088) | (399,385) | (392,784) | (397,120) | ||
Ending balance | $ (144,801) | $ (144,301) | $ (144,725) | $ (144,801) | $ (144,301) | ||||||
Ending balance | $ (145,216) | $ (145,632) | $ (145,695) | $ (145,216) | |||||||
Additional Paid-in Capital [Member] | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning balance | 12,450,614 | 12,043,056 | 10,751,313 | 10,751,313 | |||||||
Beginning balance | 10,253,155 | 10,193,030 | 10,121,323 | 10,121,323 | |||||||
Issuance of common stock for equity offering | 24,000 | (76) | 27,233 | 23,827 | (50) | 25,221 | |||||
Issuance of common stock | 1,213,431 | ||||||||||
Settlement of accrued dividends on vested equity awards | 12 | 12 | 284 | 367 | 103 | 1,795 | |||||
Stock-based compensation, net of estimated forfeitures | 61,403 | 59,502 | 50,795 | 49,940 | 51,870 | 44,691 | |||||
Ending balance | 12,043,056 | 12,635,450 | 12,450,614 | 12,043,056 | 12,635,450 | ||||||
Ending balance | 10,592,960 | 10,253,155 | 10,193,030 | 10,592,960 | |||||||
Additional Paid-in Capital [Member] | ATM Program [Member] | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Issuance of common stock | 99,421 | 348,120 | 265,671 | 8,202 | |||||||
Accumulated Dividends [Member] | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning balance | (3,743,869) | (3,532,915) | (3,331,200) | (3,331,200) | |||||||
Beginning balance | (2,960,183) | (2,776,178) | (2,592,792) | (2,592,792) | |||||||
Dividend distribution on common stock | (209,226) | (207,949) | (198,933) | (182,304) | (181,207) | (180,640) | |||||
Settlement of accrued dividends on vested equity awards | (230) | (33) | (387) | (263) | (43) | (530) | |||||
Accrued dividends on unvested equity awards | (2,993) | (2,972) | (2,395) | (2,680) | (2,755) | (2,216) | |||||
Ending balance | (3,532,915) | (3,956,318) | (3,743,869) | (3,532,915) | (3,956,318) | ||||||
Ending balance | (3,145,430) | (2,960,183) | (2,776,178) | (3,145,430) | |||||||
AOCI (Loss) [Member] | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning balance | (958,443) | (942,365) | (945,702) | (945,702) | |||||||
Beginning balance | (945,702) | (877,994) | (718,169) | (785,189) | (945,702) | (785,189) | |||||
Adjustment from adoption of new accounting standard update | (2,124) | ||||||||||
Other comprehensive income | (81,793) | (16,078) | 3,337 | (44,154) | (159,825) | 69,144 | |||||
Ending balance | (942,365) | (1,040,236) | (958,443) | (942,365) | (1,040,236) | ||||||
Ending balance | (1,040,236) | (922,148) | (877,994) | (718,169) | (1,040,236) | (922,148) | |||||
Retained Earnings [Member] | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning balance | 1,145,580 | 1,002,053 | 889,948 | 889,948 | |||||||
Beginning balance | 655,101 | 587,483 | 252,689 | 252,689 | |||||||
Adjustment from adoption of new accounting standard update | (5,973) | $ 271,900 | |||||||||
Net income (loss) | 120,850 | 143,527 | 118,078 | ||||||||
Net income | 124,825 | 67,618 | 62,894 | ||||||||
Ending balance | 1,002,053 | 1,266,430 | 1,145,580 | 1,002,053 | 1,266,430 | ||||||
Ending balance | $ 779,926 | $ 655,101 | $ 587,483 | $ 779,926 | |||||||
Equinix Stockholders' Equity [Member] | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning balance | 8,749,242 | 8,425,112 | 7,219,279 | 7,219,279 | |||||||
Adjustment from adoption of new accounting standard update | $ (5,973) | ||||||||||
Net income (loss) | 120,850 | 143,527 | 118,078 | ||||||||
Other comprehensive income | (81,793) | (16,078) | 3,337 | ||||||||
Issuance of common stock for equity offering | 24,425 | 0 | 27,593 | ||||||||
Issuance of common stock | 1,213,434 | ||||||||||
Dividend distribution on common stock | (209,226) | (207,949) | (198,933) | ||||||||
Settlement of accrued dividends on vested equity awards | (218) | (21) | (103) | ||||||||
Accrued dividends on unvested equity awards | (2,993) | (2,972) | (2,395) | ||||||||
Stock-based compensation, net of estimated forfeitures | 61,403 | 59,502 | 50,795 | ||||||||
Ending balance | 8,425,112 | 8,761,111 | 8,749,242 | 8,425,112 | 8,761,111 | ||||||
Equinix Stockholders' Equity [Member] | ATM Program [Member] | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Issuance of common stock | 99,421 | 348,121 | |||||||||
Noncontrolling Interests [Member] | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Beginning balance | (13) | (324) | 0 | 0 | |||||||
Net income (loss) | (39) | 325 | (331) | ||||||||
Other comprehensive income | (28) | (14) | 7 | ||||||||
Ending balance | $ (324) | $ (80) | $ (13) | $ (324) | $ (80) |
Stockholders' Equity - Rollfo_2
Stockholders' Equity - Rollforward - Additional Information (Details) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Equity [Abstract] | ||||||
Dividend distribution on common stock (in dollars per share) | $ 2.46 | $ 2.46 | $ 2.46 | $ 2.28 | $ 2.28 | $ 2.28 |
Stockholders' Equity - Componen
Stockholders' Equity - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 6,924,527 | $ 7,219,279 | $ 6,849,790 | |
Foreign currency translation adjustment (CTA) loss | $ (284,927) | (77,566) | (341,519) | (352,948) |
Unrealized gain on cash flow hedges | 14,217 | 19,086 | ||
Net investment hedge CTA gain | 188,897 | 27,214 | 227,890 | 180,694 |
Net actuarial loss on defined benefit plans | (8) | 14 | (26) | 35 |
Accumulated other comprehensive loss attributable to Equinix | 38,990 | 80,671 | 287,841 | 120,502 |
Ending balance | 8,761,111 | 7,160,173 | 8,761,111 | 7,160,173 |
Foreign currency translation adjustment (“CTA”) loss [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (998,603) | |||
Foreign currency translation adjustment (CTA) loss | (341,484) | |||
Ending balance | (1,340,087) | (1,340,087) | ||
Unrealized loss on cash flow hedges [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 19,480 | |||
Unrealized loss on cash flow hedges [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Unrealized gain on cash flow hedges | 19,086 | |||
Ending balance | 38,566 | 38,566 | ||
Net investment hedge CTA gain (loss) [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 34,325 | |||
Net investment hedge CTA gain | 227,890 | |||
Ending balance | 262,215 | 262,215 | ||
Net actuarial gain (loss) on defined benefit plans [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (904) | |||
Net actuarial loss on defined benefit plans | (26) | |||
Ending balance | (930) | (930) | ||
Accumulated other comprehensive loss attributable to Equinix [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (877,994) | (945,702) | (785,189) | |
Accumulated other comprehensive loss attributable to Equinix | (94,534) | |||
Ending balance | $ (1,040,236) | $ (922,148) | $ (1,040,236) | $ (922,148) |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Mar. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Aug. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Issuance of common stock in public offering of common stock (in shares) | 2,985,575 | |||||||
Issuance of common stock in public offering of common stock | $ 1,213,400,000 | $ 1,213,434,000 | ||||||
Restricted stock units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted stock units, approved (in shares) | 736,303 | |||||||
Weighted-average grant date fair value (in dollars per share) | $ 440.61 | |||||||
Service period (in years) | 3 years 7 months 24 days | |||||||
2017 ATM Program [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Issuance of common stock in public offering of common stock (in shares) | 612,422 | 631,522 | ||||||
Issuance of common stock in public offering of common stock | $ 265,700,000 | $ 273,900,000 | ||||||
Sale of stock, equity offering agreement, authorized | $ 750,000,000 | |||||||
Sale of stock, remaining available for sale (in shares) | 0 | |||||||
2018 ATM Program [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Issuance of common stock in public offering of common stock (in shares) | 181,194 | 903,555 | ||||||
Issuance of common stock in public offering of common stock | $ 99,400,000 | $ 447,500,000 | ||||||
Sale of stock, equity offering agreement, authorized | $ 750,000,000 |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Compensation Expense Recognized in Company's Condensed Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 63,871 | $ 47,588 | $ 174,413 | $ 139,849 |
Cost of revenues [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 7,104 | 4,600 | 18,616 | 13,106 |
Sales and marketing [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 15,794 | 14,166 | 44,252 | 39,980 |
General and administrative [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 40,973 | $ 28,822 | $ 111,545 | $ 86,763 |
Segment Information - Narrative
Segment Information - Narrative (Detail) | 9 Months Ended |
Sep. 30, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Revenue I
Segment Information - Revenue Information on Services Basis (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue from External Customer [Line Items] | ||||
Revenue | $ 1,396,810 | $ 1,283,751 | $ 4,145,005 | $ 3,761,571 |
Recurring Revenues [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 1,319,336 | 1,207,806 | 3,900,209 | 3,546,184 |
Recurring Revenues [Member] | Colocation [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 1,013,101 | 930,043 | 2,999,487 | 2,725,012 |
Recurring Revenues [Member] | Interconnection [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 226,770 | 202,117 | 658,585 | 594,729 |
Recurring Revenues [Member] | Managed infrastructure services [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 74,286 | 67,933 | 220,853 | 208,541 |
Recurring Revenues [Member] | Other [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 5,179 | 7,713 | 21,284 | 17,902 |
Non-recurring Revenues [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 77,474 | 75,945 | 244,796 | 215,387 |
Americas [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 645,275 | 625,684 | 1,934,061 | 1,846,586 |
Americas [Member] | Recurring Revenues [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 615,282 | 591,846 | 1,836,398 | 1,756,725 |
Americas [Member] | Recurring Revenues [Member] | Colocation [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 441,596 | 433,828 | 1,325,663 | 1,294,848 |
Americas [Member] | Recurring Revenues [Member] | Interconnection [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 146,212 | 134,159 | 427,235 | 395,132 |
Americas [Member] | Recurring Revenues [Member] | Managed infrastructure services [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 24,082 | 18,698 | 68,777 | 55,525 |
Americas [Member] | Recurring Revenues [Member] | Other [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 3,392 | 5,161 | 14,723 | 11,220 |
Americas [Member] | Non-recurring Revenues [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 29,993 | 33,838 | 97,663 | 89,861 |
EMEA [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 458,140 | 396,755 | 1,342,655 | 1,159,553 |
EMEA [Member] | Recurring Revenues [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 427,702 | 370,651 | 1,245,020 | 1,085,723 |
EMEA [Member] | Recurring Revenues [Member] | Colocation [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 357,201 | 305,072 | 1,036,121 | 886,651 |
EMEA [Member] | Recurring Revenues [Member] | Interconnection [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 41,063 | 34,640 | 117,202 | 103,586 |
EMEA [Member] | Recurring Revenues [Member] | Managed infrastructure services [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 27,651 | 28,387 | 85,136 | 88,804 |
EMEA [Member] | Recurring Revenues [Member] | Other [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 1,787 | 2,552 | 6,561 | 6,682 |
EMEA [Member] | Non-recurring Revenues [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 30,438 | 26,104 | 97,635 | 73,830 |
Asia-Pacific [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 293,395 | 261,312 | 868,289 | 755,432 |
Asia-Pacific [Member] | Recurring Revenues [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 276,352 | 245,309 | 818,791 | 703,736 |
Asia-Pacific [Member] | Recurring Revenues [Member] | Colocation [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 214,304 | 191,143 | 637,703 | 543,513 |
Asia-Pacific [Member] | Recurring Revenues [Member] | Interconnection [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 39,495 | 33,318 | 114,148 | 96,011 |
Asia-Pacific [Member] | Recurring Revenues [Member] | Managed infrastructure services [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 22,553 | 20,848 | 66,940 | 64,212 |
Asia-Pacific [Member] | Recurring Revenues [Member] | Other [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Asia-Pacific [Member] | Non-recurring Revenues [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | $ 17,043 | $ 16,003 | $ 49,498 | $ 51,696 |
Segment Information - Schedule
Segment Information - Schedule of Adjusted EBITDA (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total adjusted EBITDA | $ 674,702 | $ 612,526 | $ 2,011,867 | $ 1,796,045 |
Depreciation, amortization and accretion expense | (321,746) | (306,318) | (957,001) | (921,611) |
Stock-based compensation expense | (63,871) | (47,588) | (174,413) | (139,849) |
Impairment charges | (1,189) | 0 | (16,023) | 0 |
Transaction costs | (2,991) | 1,120 | (8,236) | (33,932) |
Gain on asset sale | 463 | 6,013 | 463 | 6,013 |
Income from operations | 285,368 | 265,753 | 856,657 | 706,666 |
Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total adjusted EBITDA | 306,656 | 296,003 | 923,546 | 881,507 |
EMEA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total adjusted EBITDA | 212,518 | 179,797 | 621,235 | 516,790 |
Asia-Pacific [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total adjusted EBITDA | $ 155,528 | $ 136,726 | $ 467,086 | $ 397,748 |
Segment Information - Segment D
Segment Information - Segment Disclosures (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total depreciation and amortization | $ 321,891 | $ 305,726 | $ 954,293 | $ 920,625 |
Capital expenditures | 556,822 | 545,541 | 1,364,960 | 1,415,509 |
Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total depreciation and amortization | 168,999 | 157,458 | 503,013 | 474,958 |
Capital expenditures | 203,281 | 226,127 | 521,399 | 573,733 |
EMEA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total depreciation and amortization | 86,607 | 88,813 | 258,752 | 270,585 |
Capital expenditures | 171,293 | 238,372 | 506,499 | 615,140 |
Asia-Pacific [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total depreciation and amortization | 66,285 | 59,455 | 192,528 | 175,082 |
Capital expenditures | $ 182,248 | $ 81,042 | $ 337,062 | $ 226,636 |
Segment Information - Long-Live
Segment Information - Long-Lived Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Company's long-lived assets | $ 11,229,197 | $ 10,732,909 | $ 11,026,020 |
Americas [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Company's long-lived assets | 5,146,358 | 5,010,507 | |
EMEA [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Company's long-lived assets | 3,610,597 | 3,726,596 | |
Asia-Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Company's long-lived assets | $ 2,472,242 | $ 2,288,917 |
Subsequent Events (Detail)
Subsequent Events (Detail) - Subsequent event [Member] $ / shares in Units, $ in Millions | Oct. 30, 2019$ / shares | Oct. 08, 2019 | Mar. 31, 2020USD ($)data_center |
Subsequent Event [Line Items] | |||
Cash dividends declared (in dollars per share) | $ / shares | $ 2.46 | ||
Joint Venture [Member] | Equinix, Inc. [Member] | |||
Subsequent Event [Line Items] | |||
Ownership interest | 20.00% | ||
Joint Venture [Member] | GIC, Singapore Sovereign Wealth Fund [Member] | |||
Subsequent Event [Line Items] | |||
Ownership interest | 80.00% | ||
Data centers in Mexico [Member] | Forecast [Member] | |||
Subsequent Event [Line Items] | |||
Data center sites | data_center | 3 | ||
Cash consideration for acquisition | $ | $ 175 |