Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 26, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CyrusOne Inc. | |
Entity Central Index Key | 1,553,023 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | CONE | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 105,834,497 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Investment in real estate: | ||
Land | $ 125,200,000 | $ 104,600,000 |
Buildings and improvements | 1,587,300,000 | 1,371,400,000 |
Equipment | 2,452,500,000 | 1,813,900,000 |
Gross operating real estate | 4,165,000,000 | 3,289,900,000 |
Less accumulated depreciation | (973,400,000) | (782,400,000) |
Net operating real estate | 3,191,600,000 | 2,507,500,000 |
Construction in progress, including land under development | 738,600,000 | 487,100,000 |
Land held for future development | 189,600,000 | 63,800,000 |
Total investment in real estate, net | 4,119,800,000 | 3,058,400,000 |
Cash and cash equivalents | 61,000,000 | 151,900,000 |
Rent and other receivables (net of allowance for doubtful accounts of $2.0 and $2.1 as of September 30, 2018 and December 31, 2017, respectively) | 104,500,000 | 87,200,000 |
Equity investment | 282,200,000 | 175,600,000 |
Goodwill | 455,100,000 | 455,100,000 |
Intangible assets (net of accumulated amortization of $154.9 and $136.1 as of September 30, 2018 and December 31, 2017, respectively) | 248,400,000 | 203,000,000 |
Other assets | 222,100,000 | 180,900,000 |
Total assets | 5,493,100,000 | 4,312,100,000 |
Liabilities and equity | ||
Debt, net | 2,576,200,000 | 2,089,400,000 |
Capital lease obligations and lease financing arrangements | 162,700,000 | 142,000,000 |
Construction costs payable | 160,500,000 | 115,500,000 |
Accounts payable and accrued expenses | 96,800,000 | 97,900,000 |
Dividends payable | 49,700,000 | 41,800,000 |
Deferred revenue and prepaid rents | 139,500,000 | 111,600,000 |
Deferred tax liability | 68,700,000 | 0 |
Total liabilities | 3,254,100,000 | 2,598,200,000 |
Commitments and contingencies | ||
Stockholders' equity | ||
Preferred stock, $.01 par value, 100,000,000 authorized; no shares issued or outstanding | 0 | 0 |
Common stock, $.01 par value, 500,000,000 shares authorized and 105,834,067 and 96,137,874 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively | 1,100,000 | 1,000,000 |
Additional paid in capital | 2,685,300,000 | 2,125,600,000 |
Accumulated deficit | (444,300,000) | (486,900,000) |
Accumulated other comprehensive income (loss) | (3,100,000) | 74,200,000 |
Total stockholders’ equity | 2,239,000,000 | 1,713,900,000 |
Total liabilities and equity | $ 5,493,100,000 | $ 4,312,100,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 2 | $ 2.1 |
Accumulated amortization for intangible assets | $ 154.9 | $ 136.1 |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock issued (in shares) | 105,834,067 | 96,137,874 |
Common stock outstanding (in shares) | 105,834,067 | 96,137,874 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue: | ||||
Revenue | $ 206,600,000 | $ 175,300,000 | $ 600,100,000 | $ 491,500,000 |
Operating expenses: | ||||
Property operating expenses | 77,700,000 | 63,000,000 | 214,400,000 | 174,900,000 |
Sales and marketing | 4,300,000 | 3,900,000 | 14,000,000 | 13,100,000 |
General and administrative | 19,300,000 | 17,500,000 | 57,200,000 | 50,600,000 |
Depreciation and amortization | 84,000,000 | 68,700,000 | 236,200,000 | 188,100,000 |
Transaction, acquisition, integration and other related expenses | 1,100,000 | 4,100,000 | 3,400,000 | 6,600,000 |
Impairment losses | 0 | 54,400,000 | 0 | 58,000,000 |
Total operating expenses | 186,400,000 | 211,600,000 | 525,200,000 | 491,300,000 |
Operating income | 20,200,000 | (36,300,000) | 74,900,000 | 200,000 |
Interest expense | (25,800,000) | (17,900,000) | (69,400,000) | (48,000,000) |
Unrealized gain (loss) on marketable equity investment | (36,600,000) | 0 | 106,600,000 | 0 |
Loss on early extinguishment of debt | 0 | 0 | (3,100,000) | (36,500,000) |
Net income (loss) before income taxes | (42,200,000) | (54,200,000) | 109,000,000 | (84,300,000) |
Income tax expense | (200,000) | (900,000) | (2,000,000) | (2,000,000) |
Net income (loss) | $ (42,400,000) | $ (55,100,000) | $ 107,000,000 | $ (86,300,000) |
Weighted average common shares outstanding - basic (in shares) | 98.8 | 90.4 | 97.8 | 87.5 |
Weighted average common shares outstanding - diluted (in shares) | 98.8 | 90.4 | 98.4 | 87.5 |
Income (loss) per share - basic (in dollars per share) | $ (0.43) | $ (0.61) | $ 1.09 | $ (0.99) |
Income (loss) per share - diluted (in dollars per share) | (0.43) | (0.61) | 1.08 | (0.99) |
Dividends declared per share (in dollars per share) | $ 0.46 | $ 0.42 | $ 1.38 | $ 1.26 |
Lease and other revenues from customers | ||||
Revenue: | ||||
Revenue | $ 177,600,000 | $ 155,500,000 | $ 525,200,000 | $ 440,800,000 |
Metered power reimbursements | ||||
Revenue: | ||||
Revenue | $ 29,000,000 | $ 19,800,000 | $ 74,900,000 | $ 50,700,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (42.4) | $ (55.1) | $ 107 | $ (86.3) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (1.8) | (0.1) | (1.7) | 0 |
Comprehensive income (loss) | $ (44.2) | $ (55.2) | $ 105.3 | $ (86.3) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance (in shares) at Dec. 31, 2016 | 83.5 | ||||
Beginning Balance at Dec. 31, 2016 | $ 1,162 | $ 0.8 | $ 1,412.3 | $ (249.8) | $ (1.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (86.3) | (86.3) | |||
Stock-based compensation expense (in shares) | (0.1) | ||||
Stock-based compensation expense | 11.6 | 11.6 | |||
Tax payment upon exercise of equity awards (in shares) | (0.1) | ||||
Tax payment upon exercise of equity awards | $ (6.6) | (6.6) | |||
Issuance of common stock, net (in shares) | 8 | 8 | |||
Issuance of common stock, net | $ 408.8 | $ 0.1 | 408.7 | ||
Foreign currency translation adjustment | 0 | ||||
Dividends declared | (113.1) | (113.1) | |||
Ending Balance (in shares) at Sep. 30, 2017 | 91.3 | ||||
Ending Balance at Sep. 30, 2017 | 1,376.4 | $ 0.9 | 1,826 | (449.2) | (1.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Adoption of accounting standards | Revenue recognition, cumulative modified retrospective | 0.3 | 0.3 | |||
Adoption of accounting standards | Financial instruments (equity investment), cumulative adjustment | 0 | 75.6 | (75.6) | ||
Beginning Balance (in shares) at Dec. 31, 2017 | 96.1 | ||||
Beginning Balance at Dec. 31, 2017 | 1,713.9 | $ 1 | 2,125.6 | (486.9) | 74.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 107 | 107 | |||
Stock-based compensation expense (in shares) | 0 | ||||
Stock-based compensation expense | 13 | 13 | |||
Tax payment upon exercise of equity awards (in shares) | (0.1) | ||||
Tax payment upon exercise of equity awards | $ (5.1) | (5.1) | |||
Issuance of common stock, net (in shares) | 9.7 | 9.8 | |||
Issuance of common stock, net | $ 551.9 | $ 0.1 | 551.8 | ||
Foreign currency translation adjustment | (1.7) | (1.7) | |||
Dividends declared | (140.3) | (140.3) | |||
Ending Balance (in shares) at Sep. 30, 2018 | 105.8 | ||||
Ending Balance at Sep. 30, 2018 | $ 2,239 | $ 1.1 | $ 2,685.3 | $ (444.3) | $ (3.1) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per share (in dollars per share) | $ 0.46 | $ 0.42 | $ 1.38 | $ 1.26 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 107,000,000 | $ (86,300,000) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 236,200,000 | 188,100,000 |
Interest expense amortization, net | 3,000,000 | 3,400,000 |
Stock-based compensation expense | 13,000,000 | 11,600,000 |
Provision for bad debt expense | 600,000 | 500,000 |
Unrealized gain on marketable equity investment | (106,600,000) | 0 |
Loss on early extinguishment of debt | 3,100,000 | 36,500,000 |
Impairment losses | 0 | 58,000,000 |
Other | 0 | 1,300,000 |
Change in operating assets and liabilities: | ||
Rent and other receivables, net and other assets | (55,400,000) | (53,700,000) |
Accounts payable and accrued expenses | (23,400,000) | 3,500,000 |
Deferred revenue and prepaid rents | 25,400,000 | 27,200,000 |
Net cash provided by operating activities | 202,900,000 | 190,100,000 |
Cash flows from investing activities: | ||
Asset acquisitions, primarily real estate, net of cash acquired | (461,800,000) | (492,300,000) |
Investment in real estate | (631,200,000) | (709,100,000) |
Net cash used in investing activities | (1,093,000,000) | (1,201,400,000) |
Cash flows from financing activities: | ||
Issuance of common stock, net | 551,900,000 | 408,800,000 |
Dividends paid | (132,300,000) | (107,400,000) |
Proceeds from debt, net | 1,665,100,000 | 1,946,000,000 |
Payments on debt | (1,272,700,000) | (1,212,100,000) |
Payments on capital lease obligations and lease financing arrangements | (7,800,000) | (7,300,000) |
Tax payment upon exercise of equity awards | (5,100,000) | (6,600,000) |
Net cash provided by (used in) financing activities | 799,100,000 | 1,021,400,000 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 100,000 | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (90,900,000) | 10,100,000 |
Cash, cash equivalents and restricted cash at beginning of period | 151,900,000 | 14,600,000 |
Cash, cash equivalents and restricted cash at end of period | $ 61,000,000 | $ 24,700,000 |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business CyrusOne Inc., together with CyrusOne GP (the "General Partner"), a wholly-owned subsidiary of CyrusOne Inc., through which CyrusOne Inc. wholly owns CyrusOne LP (the "Operating Partnership") and the subsidiaries of the Operating Partnership (collectively, “CyrusOne”, “we”, “us”, “our”, and the “Company”) is an owner, operator and developer of enterprise-class, carrier-neutral, multi-tenant and single-tenant data center properties. Our customers operate in a number of industries, including information technology, financial services, energy, oil and gas, mining, medical and consumer goods and services. We currently operate 47 data centers and two recovery centers located in the United States, United Kingdom, Germany and Singapore. On January 24, 2013 , the Company completed its initial public offering (the "IPO") of common stock and its common stock currently trades on the NASDAQ Exchange under the ticker symbol "CONE". As of September 30, 2018 , all of the issued and outstanding Operating Partnership units of CyrusOne LP are owned, directly or indirectly, by the Company. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Interim Unaudited Financial Information The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017 , which was filed with the Securities and Exchange Commission ("SEC") on February 22, 2018. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been omitted from this report on Form 10-Q pursuant to the rules and regulations of the SEC. Results for the interim periods in this report are not necessarily indicative of future financial results and have not been audited by our independent registered public accounting firm. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments necessary to present fairly our condensed consolidated financial statements as of September 30, 2018 and 2017 , and for the three and nine months ended September 30, 2018 and 2017 . These adjustments are of a normal recurring nature and consistent with the adjustments recorded to prepare the annual audited consolidated financial statements as of December 31, 2017 . All amounts reflected are in millions except share and per share data. Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company, as well as all wholly-owned subsidiaries and any consolidated variable interest entities. All inter-company balances and transactions have been eliminated in consolidation. Investment in Real Estate Investment in real estate consists of land, buildings, improvements and equipment utilized in our data center operations and land held for future development. Additions and improvements which extend an asset’s useful life or increase its functionality are capitalized and depreciated over the asset’s remaining life. Maintenance and repairs are expensed as incurred. We capitalize project costs related to the development and construction of our data centers including interest, real estate taxes, insurance, and other direct costs. Indirect project costs not clearly related to development and construction are expensed as incurred. Indirect project costs that clearly relate to development and construction are capitalized and allocated to the developments to which they relate. For each development, capitalization begins when we determine that the development is probable and significant development activities are underway. We suspend capitalization at such time as significant development activity ceases, but future development is still probable. We cease capitalization when the developments or other improvements are completed and ready for their intended use, or if the intended use changes such that capitalization is no longer appropriate. Building and related improvements are generally considered ready for their intended use when the designated premises, which could be less than the entire building, is ready for occupancy. When we are the lessee of the property and we are involved in the construction of structural improvements, we are deemed the accounting owner of the leased real estate. At inception, the fair value of the building, excluding land, is recorded as a leasehold asset, and the construction and modification costs to the building that are not funded by us are recorded as a liability which is recorded as lease financing arrangements. As construction progresses, the asset and obligation increase by the cost of the structural improvements, which approximate the fair value. At completion of the construction, if our involvement is deemed to continue, the leasehold asset is placed in service and depreciation commences. Depreciation is calculated using the straight-line method over the estimated useful life of the asset. Useful lives range from nine to thirty years for buildings, three to thirty years for building improvements, and two to twenty years for equipment. Leasehold improvements are amortized over the shorter of the asset’s useful life or the remaining lease term, including renewal options which are reasonably assured, and to the lesser of the fair value or financing arrangement obligation estimated at the end of the lease term. Impairment Losses If events or circumstances indicate that the carrying amount of the real estate investment, including leased real estate investments, may not be recoverable, we make an assessment of the recoverability of the asset, usually at the individual property level, by comparing the carrying amount of the asset to our estimate of the aggregate undiscounted future operating cash flows expected to be generated over the holding period of the asset including its eventual disposition. If the carrying amount, including related real estate intangible assets, exceeds the aggregate undiscounted future operating cash flows, we recognize an impairment loss to the extent the carrying amount exceeds the estimated fair value of the asset. We did not record any impairment losses for the three and nine months ended September 30, 2018 and recorded impairment losses of $54.4 million and $58.0 million for the three and nine months ended September 30, 2017 , respectively, related to our leased data center facilities in the Connecticut markets, and with respect to the nine months ended September 30, 2017, our leased data center facility in Singapore. Business Combinations and Asset Acquisitions We evaluate whether a transaction is a business combination or an asset acquisition by determining whether the set of assets is a business. When substantially all of the fair value of gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, the transaction is accounted for as an asset acquisition. In an asset acquisition, the purchase price paid for assets acquired is allocated between identified tangible and intangible assets acquired based on relative fair value. Transaction costs associated with asset acquisitions are capitalized. When substantially all of the fair value is not concentrated in a group of similar identifiable assets, the set of assets will generally be considered a business and the Company applies the purchase method for business combinations, where all tangible and identifiable intangible assets acquired and all liabilities assumed are recorded at fair value. Any excess purchase price is recorded as goodwill. If the value of the acquisition is greater than the purchase price, a bargain purchase gain would be recorded. Transaction costs associated with business combinations are expensed as incurred. The following discussion applies to our initial determination of fair value and the resulting subsequent accounting which is generally applicable to both asset acquisitions and business combinations. The fair value of any tangible real estate assets acquired is determined by valuing the building as if it were vacant, and the “as-if-vacant” value is then allocated to land, buildings, equipment and improvements. Land values are derived from appraisals, and building values are calculated as replacement cost less depreciation or estimates of the relative fair value of these assets using net operating income capitalization rates, discounted cash flow analysis or similar methods. We determine in-place lease values based on our evaluation of the specific characteristics of each tenant’s lease agreement and by applying a fair value model. The estimates of fair value of in-place leases include an estimate of carrying costs during the expected lease up periods for the respective leasable area considering current market conditions. In estimating fair value of in-place leases, we consider items such as real estate taxes, insurance, leasing commissions, tenant improvements and other operating expenses to execute similar leases as well as projected rental revenue and carrying costs during the expected lease up period. We amortize the value of in-place leases acquired to expense over the approximate weighted average remaining term of the leases, adjusted for projected tenant turnover, on a composite basis. We determine the value of above-market and below-market in-place leases for acquired properties based on the present value (using an interest rate that reflects the risks associated with the leases acquired) of the difference between (1) the contractual amounts to be paid pursuant to the in-place leases and (2) estimates of current market lease rates for the corresponding in-place leases, measured over a period equal to (i) the remaining non-cancellable lease term for above-market leases, or (ii) the remaining non-cancellable lease term plus any fixed rate renewal options for below-market leases. We record the fair value of above-market and below-market leases as intangible assets or liabilities, and amortize them as an adjustment to revenue over the lease term. Due to the heavily negotiated terms of data center leases and their relative shorter-term maturity, the value of above-market or below-market in-place leases generally does not represent a significant portion of the fair value of the related real estate acquired. We determine the value of other contractual rights based on our evaluation of the specific characteristics of the underlying contracts and by applying a fair value model to the projected cash flows or usage rights that considers the timing and risks associated with the cash flows or usage. We amortize the value of finite contractual rights over the remaining contract period. Indefinite-lived contractual rights are not amortized but are evaluated for impairment at least annually. We determine the fair value of assumed debt by calculating the net present value of the scheduled debt service payments using current market-based terms for interest rates for debt with similar terms that management believes we could obtain and remaining maturities. Any difference between the fair value and stated value of the assumed debt is recorded as a discount or premium and amortized over the remaining life of the loan. Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents include all non-restricted cash held in financial institutions and other non-restricted highly liquid short-term investments with original maturities of three months or less. Restricted cash includes cash equivalents held in our name to collateralize standby letters of credit or its use is restricted by contract or regulation. Equity Investment Our equity investment, which does not qualify for equity method accounting, is classified as “available for sale” and is carried at fair value. Effective beginning January 1, 2018, changes in the fair value are reported as a component of net income (loss). Prior to January 1, 2018, such changes in fair value were reported as a component of comprehensive income (loss). See “ Recently Adopted Accounting Pronouncements ” section below. Dividends paid from operating profits are reported as a component of net income (loss), while other dividends are reported as a return of capital. Rent and Other Receivables Receivables consist principally of trade receivables from customers with expected credit losses recorded as an allowance for doubtful accounts. The allowance for doubtful accounts is estimated based upon historic patterns of credit losses for aged receivables as well as specific provisions for certain identifiable, potentially uncollectible balances. Deferred Leasing and Other Contract Costs Deferred leasing costs include leasing commissions to third party brokers, incremental commissions to employees and external and internal legal costs, which are capitalized and amortized over the term of the customer lease. Deferred leasing costs are presented in other assets and amortization of deferred leasing costs is presented in depreciation and amortization expense. If a lease terminates prior to the expiration of the lease, the remaining unamortized cost is written off to amortization expense. Incremental commission costs paid in obtaining managed service contracts are amortized based on the transfer of goods or services to which the costs relate. The amortization expense is recognized over the contract term. Deferred Financing Costs Deferred financing costs include legal and bank issuance costs incurred in connection with issuance of debt, including costs associated with the issuance of our credit facility, and are presented as a direct reduction from the carrying amount of debt. These financing costs are deferred and amortized to expense over the term of the debt and are included as a component of interest expense. When debt is paid prior to its scheduled maturity date, or the underlying terms are materially modified, the remaining carrying value of deferred finance costs, along with certain other payments to lenders, is included in loss on early extinguishment of debt. Deferred Revenue and Prepaid Rents Deferred revenue is recorded when a customer makes a contractual payment in excess of revenues recognized in accordance with GAAP. Prepaid rent liability is recorded when a customer makes an advance payment or they are contractually obligated to pay any amounts in advance of the associated lease or service period. Revenue Recognition We adopted the new revenue recognition standard effective January 1, 2018. The information in this section describes our current revenue recognition policies. See the section below “ Recently Adopted Accounting Pronouncements ” for additional information related to the adoption. Our revenue primarily consists of colocation lease revenue, metered power reimbursements, managed services, equipment sales, and other services. We generally are not entitled to reimbursements for real estate taxes, insurance or other operating expenses. The colocation lease revenue and metered power reimbursements are recognized under the lease accounting standard and managed services, equipment sales, installations, and other services are recognized under the revenue accounting standard. Payment terms generally range from 30 to 120 days. An allowance for doubtful accounts is recognized when the collection of contractual rent, straight-line rent or customer reimbursements is deemed to be unlikely. Colocation Lease Revenue and Metered Power Reimbursements Colocation lease revenues are generally billed monthly in advance based on the leased space or contracted power. Some contracts have an initial free rent period or payments that escalate over the term of the contract. If rents escalate without the lessee gaining access to or control over additional leased space or power, at the beginning of the lease term, the rental payments are recognized as revenue on a straight-line basis over the term of the lease. If rents escalate because the lessee gains access to and control over additional leased space and power, revenue is recognized in proportion to the additional space or power in the periods that the lessee has control over the use of the additional space or power. The excess of revenue recognized over amounts contractually due is recognized as a straight-line receivable, which is included in other assets in our consolidated balance sheet. When a customer makes an advance payment or they are contractually obligated to pay amounts in advance of the associated lease period, a prepaid rent liability is recorded. When a customer makes a contractual payment in excess of revenues recognized in accordance with GAAP, a deferred revenue liability is recorded. This deferred revenue liability is generally recognized on a straight-line basis over the expected term of the lease, unless the pattern of service suggests otherwise. Some of our leases are structured on a full-service gross basis in which the customer pays a fixed amount for both colocation rent and power. The revenue for these types of leases is recorded in colocation lease revenue. Other leases provide that the customer will be separately billed for power based upon actual, metered usage. Some leases that include billing for metered power include an administrative fee that is charged to the customer. Metered power reimbursement revenue is generally billed one month in arrears, and an estimate of this revenue is accrued in the month that the associated power is provided. Managed Services Managed services include the provisioning of a full-service managed data center, monitoring customer computer equipment, managing backups and storage, utilization reporting and other related ancillary information technology services. Management service contracts generally range from one to five years. Revenue is measured based on the consideration specified in the contract and recognized over time as we satisfy the performance obligation. Equipment sales Equipment sold by us generally consists of servers, switches, networking equipment, cable infrastructure, and cabinets. Revenue is recognized at a point-in-time when control of the equipment transfers to the customer from the Company, which is deemed to take place upon delivery to the customer. Other services Other services are generally one-time services and include installation of customer equipment, performing customer system re-boots, server cabinet and cage management, power monitoring, shipping and receiving, resolving technical issues, and other non-recurring hands-on service requested by the customer. Installation services include mounting, wiring, and testing of customer owned equipment. The installation period is typically short term in nature, and accordingly, revenue from the installation of customer equipment will be recognized at a point-in-time once the installation is complete and the performance obligation is satisfied. Revenue from other services is recognized over time as the Company performs the service as the customer is determined to consume the benefits of the service as the Company performs. As allowed under GAAP, we have adopted the practical expedient that allows us not to disclose information about remaining performance obligations that have original expected durations of one year or less, the amount of the transaction price allocated to the remaining performance obligations and when we expect to recognize that amount as revenue for the year. We have also adopted the “as invoiced” practical expedient, whereby the Company recognizes revenue in the amount that directly corresponds to the amount of value transferred to the customer. Transaction, Acquisition, Integration and Other Related Expenses Transaction expenses represent incremental legal, accounting and professional fees incurred in connection with business combinations and the non-recurring, incremental expenses incurred after a business combination or asset acquisition. These expenditures are expensed as incurred and do not include any recurring costs from our ongoing operations. Income Taxes We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (“the Code") and have qualified as a REIT since the year ended December 31, 2013. To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement that we distribute at least 90% of our "REIT taxable income", as defined by the Code, to our stockholders. As a REIT, we generally will not be subject to federal income tax at the corporate level, however, we are still subject to foreign, state and local income taxes in the locations in which we conduct business. We intend to operate in such a manner as to continue to qualify as a REIT, but no assurance can be given that we will operate in a manner so as to remain qualified as a REIT. If we fail to qualify as a REIT in any taxable year, we would be subject to federal income tax on our taxable income at regular corporate tax rates. As of September 30, 2018, we believe we are in compliance with all applicable REIT requirements. Since the year ended December 31, 2013, we have conducted certain non-REIT activities through taxable REIT subsidiaries (each, a "TRS"). Income recognized by our TRSs is subject to applicable federal, foreign, state, and local income and margin taxes. We have no significant taxes associated with our TRSs for the periods ended September 30, 2018 or 2017 . Deferred Income Taxes Deferred income taxes represent the tax effect of temporary differences between the book and tax basis of assets and liabilities. As of September 31, 2018, we have a $68.7 million deferred tax liability, included in the Consolidated Balance Sheet for foreign income taxes associated with the Zenium acquisition. See Note 4. Investment in Real Estate for further discussion. As of December 31, 2017, we had no deferred tax liability. We recognize the financial statement benefit of an uncertain tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. As of September 30, 2018 , we had no significant uncertain tax positions. Foreign Currency Translation and Transactions Gains or losses from translation of foreign operations where the local currency is the functional currency are included as components of other comprehensive income (loss). The financial position of foreign subsidiaries is translated at the exchange rates in effect at the end of the period, while revenues and expenses are translated at average exchange rates during the period. Gains or losses from foreign currency transactions are included in determining net income. Stock-Based Compensation Expense We have a stock-based incentive award plan for our employees and directors. Stock-based compensation expense associated with these awards is recognized in general and administrative expenses in our consolidated statements of operations. We measure stock-based compensation at the estimated fair value on the grant date and recognize the amortization of stock-based compensation expense over the requisite service period. Fair value is determined based on assumptions related to volatility, interest rates and our market and company performance. Income (Loss) Per Share Basic earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period excluding any unvested securities or unexercised options. Diluted earnings per share is calculated by adjusting basic earnings per share for the dilutive effect of the assumed exercise of securities and options, including the effect of shares issuable under our stock-based incentive plans. Our unvested share-based awards are considered participating securities and are reflected in the calculation of diluted earnings per share. During periods of net loss, the assumed exercise of securities and options is anti-dilutive and is not included in the calculation of earnings per share. For the three months ended September 30, 2018 and for the three and nine months ended September 30, 2017 , any common stock equivalents were anti-dilutive. Business Segments Our data centers have similar economic characteristics and customers across all geographic locations, and our service offerings and delivery of services are provided in a similar manner, using the same types of facilities and similar technologies. Our chief operating decision maker, the Company's Chief Executive Officer, reviews our financial information on an aggregate basis. As a result, we have concluded that we have one reportable business segment. One customer, a Fortune 500 company, represented approximately 19% and 18% of our revenue for the nine months ended September 30, 2018 and 2017 , respectively. Revenue from properties were $206.6 million and $175.3 million for the three months ended September 30, 2018 and 2017 , respectively. Revenues from properties were $600.1 million and $491.5 million for the nine months ended September 30, 2018 and 2017 , respectively. We had net investment in real estate of $4.1 billion and $3.1 billion , at September 30, 2018 and December 31, 2017, respectively. Revenue from non-U.S. properties was not material for the three and nine months ended September 30, 2018 . Use of Estimates Preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates and assumptions are based on management’s knowledge of current events and actions that we may undertake in the future. Significant estimates include and are related to determining lease terms and revenue recognition, the fair value for purchase price allocations for business combinations and asset acquisitions, and the useful lives of real estate and other long-lived assets. Actual results may differ from these estimates and assumptions. Reclassifications Certain financial information has been revised to conform to the current year presentation due to changes in the significance of the particular activity. The following items have been reclassified: Balance Sheet as of December 31, 2017 • Land related to construction in progress ( $8.7 million ) and land held for future development ( $63.8 million ) were previously included in investment in real estate - land ( $72.5 million ). • Notes receivable and long-term installment contracts are classified within other assets. These items were previously included in rent and other receivables ( $3.3 million ). • Construction costs payable are classified in a separate liability and were previously included in accounts payable and accrued expenses ( $115.5 million ). • Dividends payable are classified in a separate liability and were previously included in accounts payable and accrued expenses ( $41.8 million ). • Lease finance arrangements are classified in capital lease obligations and lease financing arrangements. These items were previously included in a separate line for lease finance arrangements ($ 131.9 million ). • Equity investment is classified in a separate asset account and was previously included in other assets ( $175.6 million ). Statement of Cash Flows for the period ended September 30, 2017 • The cash flow effect of the change in interest accrual is classified within accounts payable and accrued expenses. These items were previously combined with non-cash interest expense, net in the comparable prior year period ( $1.3 million ). • Debt issuance and debt extinguishment costs are classified within proceeds from debt, net. These items were previously included in separate lines, debt issuance costs ( $13.6 million ) and payment of debt extinguishment costs ( $30.4 million ), in the comparable prior year period. Recently Adopted Accounting Pronouncements On January 1, 2018, we adopted the Financial Accounting Standards Board ("FASB") pronouncement ASU 2014-09 with respect to revenue recognition. The revised guidance outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and superseded prior revenue recognition guidance, including industry-specific revenue guidance. The revised guidance replaced most existing revenue and real estate sale recognition guidance in GAAP. The standard specifically excludes lease contracts, which is our primary recurring revenue source; however, our revenue accounting for managed services and sales of real estate and equipment will follow the revised guidance. We adopted the new standard using the modified retrospective transition method, where financial statement presentations prior to the date of adoption are not adjusted. Transactions that were not closed as of the adoption date were adjusted to reflect the new standard and we recorded an adjustment to beginning retained earnings of $0.3 million . See Note 3 "Revenue Recognition" for further information regarding the adoption of the new accounting standard, including expanded quantitative and qualitative disclosures regarding revenue recognition. On January 1, 2018, we adopted ASU 2017-05, which requires the derecognition of a business in accordance with ASC 810, Consolidations, including instances in which the business is considered in substance real estate. In cases where a controlling interest in real estate was sold but a noncontrolling interest is retained, we may record a gain or loss related to both the sold and retained interests. The adoption of this standard did not have an impact on our condensed consolidated financial statements, but depending on future transactions, may in the future. On January 1, 2018, we adopted ASU 2016-01 related to equity investments. Equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) are to be measured at fair value with changes in fair value now recognized in net income. Previously changes in fair value for available for sale equity investments were recorded in other comprehensive income (loss). The adoption of the new standard was made through a cumulative-effect adjustment to beginning retained earnings of $75.6 million . Prior financial statement amounts were not adjusted. For the three months ended September 30, 2018 , the unrealized loss on investment was $36.6 million . For the nine months ended September 30, 2018 , the unrealized gain on investment was $106.6 million . New Accounting Pronouncements In August 2018, the SEC issued Securities Act Release No. 33-10532, Disclosure Update and Simplification, which amends certain of its disclosure requirements and is intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information provided to investors. The amendments will become effective on November 5, 2018. Among the amendments is the requirement to present the changes in shareholders’ equity in the interim financial statements (either in a separate statement or footnote) in quarterly reports on Form 10-Q. Based on the effective date of the amendments and Exchange Act Forms Compliance and Disclosure Interpretation Question 105.09 issued by the staff of the SEC’s Division of Corporation Finance on September 25, 2018 and updated on October 4, 2018, the Company’s first presentation of changes in shareholders’ equity will be in its Form 10-Q for the quarter ending March 31, 2019. In August 2018, the FASB issued ASU 2018-15, which clarifies the accounting for implementation costs incurred in a hosting arrangement that is a service contract. Capitalization of these implementation costs are accounted for under the same guidance as implementation costs incurred to develop or obtain internal-use software and recorded as a prepaid asset. These capitalized costs are to be expensed ratably over the hosting arrangement term as operating expense, along with the service fees. The guidance is effective for periods beginning after December 15, 2019. Early adoption is allowed. The Company does not plan to early adopt this guidance and is evaluating the impact of the new standard. In August 2018, the FASB issued ASU 2018-13, which changes the fair value measurement disclosure requirements of ASC 820. Under this ASU, key provisions include new, eliminated and modified disclosure requirements. The guidance is effective for periods beginning after December 15, 2019. Early adoption is allowed. The Company does not plan to early adopt this guidance and is evaluating the impact of the new standard. In June 2018, the FASB issued ASU 2018-07, which simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under this ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. The Company accounts for its share-based payments to our board of director members in the same manner as employees. Other than to our board of director members, the Company does not award share-based payments to any other nonemployees. Therefore, we do not expect this accounting pronouncement to significantly impact our financial statements. The guidance is effective for periods beginning after December 15, 2018. Early adoption is allowed. In February 2016, the FASB issued ASU 2016-02, regarding the accounting for leases for both lessees and lessors. In July 2018, ASU 2016-02 was amended, providing another transition |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition We have consistently applied our revenue accounting policies to all periods presented in these consolidated financial statements except for customer equipment installation services. Beginning with our adoption of revenue recognition in ASU 2014-09 on January 1, 2018 (see Note 2, " Revenue Recognition " and " Recently Adopted Accounting Pronouncements "), revenue from the installation of customer equipment is recognized at a point-in-time as the Company performs the service. The asset being enhanced or installed belongs to the customer, and the benefits of the installation service are being consumed at the completion of the service. Prior to the adoption of the new revenue recognition standard, the revenue from these transactions was deferred over the contract term. The deferred revenue liability balance related to completed installations, less any associated deferred costs, as of the date of adoption, calculated on a cumulative modified retrospective basis was $0.3 million and has been included in the cumulative effective adjustment to opening retained earnings. Disaggregation of Revenue For the three and nine months ended September 30, 2018 , revenue disaggregated by primary revenue stream is as follows (in millions). Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Other revenues from customers Managed services $ 3.3 $ 9.7 Equipment sales 3.6 8.7 Other services 1.2 6.3 Total other revenues from customers 8.1 24.7 Colocation lease revenue 169.5 500.5 Metered power reimbursements 29.0 74.9 Revenue $ 206.6 $ 600.1 Total other revenues from customers generated from operations outside of the United States were insignificant for the three and nine months ended September 30, 2018 . The balances and activities related to revenues from customers for accounts receivable, contract assets and contract liabilities are not material at September 30, 2018 . |
Investment in Real Estate
Investment in Real Estate | 9 Months Ended |
Sep. 30, 2018 | |
Real Estate [Abstract] | |
Investment in Real Estate | Investment in Real Estate Acquisitions of Data Centers On August 24, 2018, the Company completed its previously announced acquisition of Zenium Topco Ltd. and certain other affiliated entities ("Zenium"). Zenium is a hyperscale data center provider in Europe with four operating data centers in London and Frankfurt, and land sites available for development in London and Frankfurt. In connection with the acquisition, and after giving effect to a post-closing working capital adjustment, the Company paid aggregate cash consideration of $461.8 million , net of approximately $12.7 million of cash acquired, and assumed outside indebtedness of approximately $86.3 million . The Company has also accrued approximately $1.0 million related to the post-closing working capital adjustment, that is expected to be paid in the quarter ended December 31, 2018. The Company financed the acquisition with proceeds from the $300.0 million delayed draw term loan included in the 2023 Term Loan (as defined below) and $174.5 million of borrowings under the $1.7 Billion Revolving Credit Facility (as defined below). As a result of the acquisition, the Company recognized a $69.2 million deferred tax liability associated with temporary differences between the book basis of the assets acquired in the transaction. The Company evaluated the acquisition and determined that substantially all of the fair value of the gross assets was concentrated in a group of similar identifiable assets and accounted for the transaction as an acquisition of assets. The consolidated financial statements of CyrusOne Inc. include the operating results of Zenium since the acquisition date, which was August 24, 2018. The following table summarizes the estimated fair values of all assets acquired at the date of acquisition: IN MILLIONS Investment in real estate $ 595.4 Cash and cash equivalents 12.7 Rent and other receivables 9.0 Intangible assets: Trade name 1.8 Leasehold interest 1.6 In-place leases 60.9 Other assets 1.1 Accounts payable (24.2 ) Deferred revenue (3.3 ) Capital lease obligations (25.0 ) Deferred tax liability (69.2 ) Debt (86.3 ) Net assets acquired attributable to CyrusOne Inc. 474.5 Cash acquired (12.7 ) Net cash paid at acquisition $ 461.8 On February 28, 2017 , the Company acquired two data centers located in Raleigh-Durham, North Carolina and Somerset, New Jersey which was accounted for as an asset acquisition. The Company's aggregate cash consideration paid totaled approximately $492.3 million , including related acquisition and closing costs. The two properties consist of approximately 160,000 colocation square feet and approximately 21 megawatts of power capacity. The following table summarizes the estimated fair values of all assets acquired at the date of acquisition: IN MILLIONS Investment in real estate $ 420.3 Cash and cash equivalents 3.2 Intangible assets: Above/Below market leases 2.3 In-place leases 75.8 Other assets 2.4 Payables (5.4 ) Deferred revenue (0.9 ) Capital lease obligation (2.2 ) Net assets acquired attributable to CyrusOne Inc. 495.5 Cash acquired (3.2 ) Net cash paid at acquisition $ 492.3 Land for future development During the three months ended September 30, 2018 , the Company purchased approximately 99 acres of land for $139.9 million , and the Company purchased approximately 66 acres of land for $13.0 million during the three months ended September 30, 2017 . During the nine months ended September 30, 2018 , the Company purchased approximately 167 acres of land for $159.6 million , and the Company purchased approximately 209 acres of land for $35.3 million during the nine months ended September 30, 2017 . Real Estate Investments and Intangibles and Related Depreciation and Amortization As of September 30, 2018 and December 31, 2017 , major components of our real estate investments and intangibles and related accumulated depreciation and amortization are as follows (in millions): September 30, 2018 December 31, 2017 Investment in Real Estate Intangibles Investment in Real Estate Intangibles Buildings and Improvements Equipment Customer Relationships In Place Leases Other Contractual Buildings and Improvements Equipment Customer Relationships In Place Leases Other Contractual Cost $ 1,587.3 $ 2,452.5 $ 247.1 $ 136.7 $ 19.5 $ 1,371.4 $ 1,813.9 $ 247.1 $ 75.9 $ 16.1 Less: accumulated depreciation and amortization (461.4 ) (512.0 ) (134.2 ) (13.4 ) (7.3 ) (418.2 ) (364.2 ) (123.0 ) (7.1 ) (6.0 ) Net $ 1,125.9 $ 1,940.5 $ 112.9 $ 123.3 $ 12.2 $ 953.2 $ 1,449.7 $ 124.1 $ 68.8 $ 10.1 As of September 30, 2018 and December 31, 2017 , construction in progress includes $28.8 million and $8.7 million of land which is under active development, respectively. Depreciation expense was $74.9 million and $210.0 million for the three and nine months ended September 30, 2018 , respectively, and $60.1 million and $164.3 million for the three and nine months ended September 30, 2017 , respectively. Other contractual intangibles include trademark/tradename, favorable leasehold interests and above/below market leases. Amortization expense was $9.1 million and $26.2 million for the three and nine months ended September 30, 2018 , respectively, and $8.6 million and $23.8 million for the three and nine months ended September 30, 2017 . |
Equity Investment
Equity Investment | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Equity Investment | Equity Investment As of September 30, 2018 and December 31, 2017 , our only equity investment represents a marketable equity investment in newly issued unregistered, ordinary shares equivalent to the American depository shares of GDS Holdings Limited ("GDS"), a developer and operator of high-performance, large-scale data centers in China. For the three months ended September 30, 2018 , the unrealized loss on investment was $36.6 million . For the nine months ended September 30, 2018 , the unrealized gain on investment was $106.6 million . |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets As of September 30, 2018 and December 31, 2017 , the components of other assets are as follows (in millions): September 30, 2018 December 31, 2017 Straight line receivables, net $ 120.1 $ 100.0 Deferred leasing and other contract costs 40.9 33.7 Prepaid expenses 26.3 20.0 Non-real estate assets, net 15.6 16.7 Other 19.2 10.5 Total $ 222.1 $ 180.9 Non-real estate assets primarily include administrative related equipment and office leasehold improvements, depreciated or amortized over the shorter of the assets useful life or the related lease term. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of September 30, 2018 and December 31, 2017 , the components of debt are as follows (unless otherwise noted, interest rate and maturity date information are as of September 30, 2018 ) (in millions): September 30, 2018 December 31, 2017 Interest Rate (a) Maturity Date $3.0 Billion Credit Facility: $1.7 Billion Revolving Credit Facility $ — $ — Monthly LIBOR + 1.45% March 2022 (b) 2023 Term Loan 1,000.0 — Monthly LIBOR + 1.40% March 2023 2025 Term Loan 300.0 — Monthly LIBOR + 1.70% March 2025 $2.0 Billion Credit Facility: $1.1 Billion Revolving Credit Facility — — Monthly LIBOR + 1.55% N/A 2021 Term Loan — 250.0 Monthly LIBOR + 1.50% N/A 2022 Term Loan — 650.0 Monthly LIBOR + 1.50% N/A 2024 Notes, including bond premium of $5.9 million 705.9 706.8 5.000 % March 2024 2027 Notes, including bond premium of $9.4 million 509.4 510.5 5.375 % March 2027 EUR construction facility 95.6 — EURIBOR + 3.25% June 2023 Deferred financing costs (34.7 ) (27.9 ) — — Total $ 2,576.2 $ 2,089.4 (a) - Monthly LIBOR at September 30, 2018 was 2.25% . (b) - The Company may exercise a one -year extension option, subject to certain conditions. On March 29, 2018, the Company entered into a new $3.0 billion unsecured credit facility. The new credit facility consists of a $1.7 billion revolving credit facility (" $1.7 Billion Revolving Credit Facility"), which includes a $750 million multicurrency borrowing sublimit, a 5 -year term loan with commitments totaling $1.0 billion ("2023 Term Loan") and a $300.0 million 7 -year term loan ("2025 Term Loan") (collectively, the " $3.0 Billion Credit Facility"). We borrowed $700.0 million under the 2023 Term Loan on March 31, 2018, and the 2023 Term Loan includes a delayed draw feature which allows the Company to draw $300.0 million in up to three tranches over a six -month period in multiple currencies. The Company exercised the draw as a part of the Zenium acquisition. The $1.7 Billion Revolving Credit Facility has the option to borrow in non-USD currencies and includes a one -year option which, if exercised by the Company, would extend the final maturity to March 2023. The $3.0 Billion Credit Facility also includes an accordion feature providing for an aggregate increase in the revolving and term components to $4.0 billion , subject to certain conditions. The $1.7 Billion Revolving Credit Facility, and the 2023 and 2025 Term Loans, are prepayable at our option. On March 29, 2018, borrowings of $1.0 billion under the $3.0 Billion Credit Facility were used to fully retire a previous $2.0 billion credit facility. The previous $2.0 billion credit facility consisted of a $1.1 billion senior unsecured revolving credit facility (" $1.1 Billion Revolving Credit Facility"), a $250 million 5 -year term ("2021 Term Loan") and a $650 million 7 -year term loan ("2022 Term Loan") (collectively, the " $2.0 Billion Credit Facility"). The aggregate outstanding principal balance of the $2.0 Billion Credit Facility at the date of the prepayment was $900.0 million and we recognized a loss on early extinguishment of debt of $3.1 million . In August 2018, the Company financed the acquisition of Zenium with proceeds from its $300.0 million delayed draw term loan included in the 2023 Term Loan and $174.5 million of borrowings under the $1.7 Billion Revolving Credit Facility. In connection with the acquisition, the Company assumed a six -year, €100.0 million construction facility. The construction facility is to be repaid in quarterly installments beginning June 30, 2019 and ending June 30, 2023. The construction facility has an accordion feature which can be exercised a maximum of three times, ranging in amounts from €5.0 million to €31.5 million . The construction facility is used to finance the construction of a data center in Frankfurt. We pay commitment fees for the unused amount of borrowings on the $1.7 Billion Revolving Credit Facility and fees on any outstanding letters of credit. The commitment fees are equal to 0.25% per annum of the actual daily amount by which the aggregate revolving commitments exceed the sum of outstanding revolving loans and letter of credit obligations. The commitment fees decrease to 0.15% per annum upon 50% or greater utilization. We also paid commitment fees on the $1.1 Billion Revolving Credit Facility through its retirement in March 2018. Commitment fees were $1.0 million and $0.6 million for the three months ended September 30, 2018 and 2017 , respectively, and $2.8 million and $1.3 million for the nine months ended September 30, 2018 and 2017 , respectively. As of September 30, 2018 , additional borrowing capacity under the $3.0 Billion Credit Facility was approximately $1.7 billion under the $1.7 Billion Revolving Credit Facility. As of September 30, 2018 , we had $7.8 million of outstanding letters of credit issued under our credit facilities. On March 17, 2017, the Operating Partnership and CyrusOne Finance Corp., a single-purpose finance subsidiary, both wholly-owned subsidiaries of the Company (together, the "Note Issuers") completed an offering of $500.0 million aggregate principal amount of 5.000% senior notes due 2024 ("Original 2024 Notes") and $300.0 million aggregate principal amount of 5.375% senior notes due 2027 ("Original 2027 Notes") in a private offering. The Company received proceeds of $791.2 million , net of underwriting costs and other deferred financing costs related to the notes. On November 3, 2017, the Note Issuers completed an offering of $200.0 million aggregate principal amount of 5.000% senior notes due 2024 ("Additional 2024 Notes") and $200.0 million aggregate principal amount of 5.375% senior notes due 2027 ("Additional 2027 Notes") in a private offering. The Additional 2024 Notes have terms substantially identical to the Original 2024 Notes and the Additional 2027 Notes have terms substantially identical to the Original 2027 Notes. The Original 2024 Notes and the Additional 2024 Notes form a single class of securities ("2024 Notes"), and the Original 2027 Notes and the Additional 2027 Notes form a single class of securities ("2027 Notes"). The Company received proceeds of $416.1 million , net of underwriting costs of $4.4 million . The Original 2024 Notes and the Additional 2024 Notes are referred to as the 2024 Notes and the Original 2027 Notes and the Additional 2027 Notes are referred to as the 2027 Notes. On January 8, 2018, the Issuers completed an exchange offer with respect to the 2024 Notes and the 2027 Notes and all validly tendered 2024 Notes and 2027 Notes were exchanged for notes registered with the SEC. The 2024 Notes and 2027 Notes are senior unsecured obligations of the Note Issuers, which rank equally in right of payment with all existing and future unsecured senior indebtedness of the Note Issuers. The 2024 Notes and 2027 Notes are effectively subordinated in right of payment to any secured indebtedness of the Note Issuers to the extent of the value of the assets securing such indebtedness. The senior notes are guaranteed on a joint and several basis by the Company, the General Partner and all of CyrusOne LP’s existing domestic subsidiaries that guarantee the $3.0 Billion Credit Facility. Each of CyrusOne LP’s restricted subsidiaries (other than any designated excluded subsidiary or receivables entity) that guarantees any other indebtedness of CyrusOne LP or other indebtedness of the guarantors will be required to guarantee the senior notes in the future. Each such guarantee is a senior unsecured obligation of the applicable guarantor, ranking equally with all existing and future unsecured senior indebtedness of such guarantor and effectively subordinated to all existing and future secured indebtedness of such guarantor to the extent of the value of the assets securing that indebtedness. The 2024 Notes and 2027 Notes are structurally subordinated to all liabilities (including trade payables) of each subsidiary of CyrusOne LP that does not guarantee the 2024 Notes and 2027 Notes. The 2024 Notes and 2027 Notes may be redeemed at our option prior to their scheduled maturity dates at the prices and premiums and on the terms set forth in the respective indentures governing the notes. On November 20, 2012, wholly-owned subsidiaries of the Company issued $525.0 million of 6.375% senior notes due 2022 (the " 6.375% Notes"). In March 2017, the Company repurchased all of the 6.375% Notes with an aggregate face value of $474.8 million , a net carrying value of $469.0 million , for total consideration of $515.1 million , including accrued and unpaid interest of $10.3 million . In connection with the debt prepayment, we recognized a loss on early extinguishment of debt of $36.2 million . Our debt agreements contain customary provisions with respect to events of default, affirmative and negative covenants and borrowing conditions. The most restrictive covenants are generally included in the $3.0 Billion Credit Agreement. The $3.0 Billion Credit Agreement requires us to maintain certain financial covenants including the following, in each case on a consolidated basis, a minimum fixed charge ratio, maximum total and secured leverage ratios, a minimum tangible net worth requirement, a maximum secured recourse indebtedness ratio, a minimum unencumbered debt yield ratio and a maximum ratio of unsecured indebtedness to unencumbered asset value. In order to continue to have access to amounts available under the $3.0 Billion Credit Agreement, the Company must remain in compliance with all of that agreement's covenants. As of September 30, 2018 , we believe we are in compliance with all provisions of our debt agreements. As of September 30, 2018 , all of our outstanding debt matures between 2023 and 2027. |
Capital Lease Obligations and L
Capital Lease Obligations and Lease Financing Arrangements | 9 Months Ended |
Sep. 30, 2018 | |
Leases [Abstract] | |
Capital Lease Obligations and Lease Financing Arrangements | Capital Lease Obligations and Lease Financing Arrangements As of September 30, 2018 and December 31, 2017 , capital lease obligations and lease financing arrangements are as follows (in millions): September 30, 2018 December 31, 2017 Capital lease obligations $ 36.9 $ 10.1 Lease financing arrangements 125.8 131.9 Total $ 162.7 $ 142.0 Capital lease obligations represent financing for five of our data centers. The remaining terms of our capital leases range from 2021 to 2041. Lease financing arrangements represent leases of real estate in which we are involved in the construction of structural improvements to develop or improve buildings into data centers. The remaining terms of our lease financing arrangements range from 2020 to 2035. The following table summarizes aggregate minimum principal payments of the capital lease obligations and lease financing arrangements for the five years subsequent to September 30, 2018 , and thereafter (in millions): Capital Leases Lease Financing Arrangements 2018 $ 0.8 $ 1.8 2019 3.1 7.7 2020 3.3 21.0 2021 3.5 5.7 2022 2.6 6.3 Thereafter 23.6 83.3 Total $ 36.9 $ 125.8 Interest expense on capital lease obligations and lease financing arrangements was $2.2 million and $6.7 million for the three and nine months ended September 30, 2018 , respectively, and $2.2 million and $6.7 million for the three and nine months ended September 30, 2017 , respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value measurements are based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering assumptions in fair value measurements, a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy) has been established. Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets and liabilities that we have the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability that are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The fair value of cash and cash equivalents, rent and other receivables, construction costs payable, dividends payable and accounts payable and accrued expenses approximate their carrying value because of the short-term nature of these financial instruments. The carrying value, exclusive of deferred financing costs, for the revolving credit facilities and the floating rate term loans approximate estimated fair value as of September 30, 2018 and December 31, 2017 , due to the floating rate nature of the interest rates and the stability of our credit ratings. The carrying value and fair value of other financial instruments are as follows (in millions): September 30, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value 2024 Notes $ 705.9 $ 714.0 $ 706.8 $ 728.0 2027 Notes 509.4 512.5 510.5 527.5 Equity investment 282.2 282.2 175.6 175.6 The fair values of our 2024 Notes and 2027 Notes as of September 30, 2018 were based on the quoted market prices for these notes, which is considered Level 1 of the fair value hierarchy. The fair value of the equity investment ( $282.2 million at September 30, 2018 ) was based on the quoted market price for the stock which is considered Level 1 of the fair value hierarchy. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stockholders' Equity | Stockholders' Equity Capitalization During the nine months ended September 30, 2018 and 2017 , we sold 9.7 million and 8.0 million common shares, respectively, at an average price of $58.67 and $52.47 , respectively. At September 30, 2018 , the Company had approximately 105.8 million common shares outstanding. Distributions During the nine months ended September 30, 2018 and 2017 , regular dividends were paid to our stockholders of $1.38 and $1.26 per common share, respectively. On October 30, 2018 , the Company will announce a cash dividend of $0.46 per common share payable on January 11, 2019 , to stockholders of record at the close of business on January 2, 2019. Stock Plans The board of directors of CyrusOne Inc. adopted the 2012 Long-Term Incentive Plan ("LTIP"), which was amended and restated on May 2, 2016. The LTIP is administered by the compensation committee of the board of directors. Awards issuable under the LTIP include common stock, restricted stock, restricted stock units, stock options and other incentive awards. CyrusOne Inc. has reserved a total of 8.9 million shares of CyrusOne Inc. common stock for issuance pursuant to the LTIP, which may be adjusted for changes in capitalization and certain corporate transactions. To the extent that an award, if forfeitable, expires, terminates or lapses, or an award is otherwise settled in cash without the delivery of shares of common stock to the participant, then any unpaid shares subject to the award will be available for future grant or issuance under the LTIP. The payment of dividend equivalents in cash in conjunction with any outstanding awards will not be counted against the shares available for issuance under the LTIP. Shares available under the LTIP at September 30, 2018 , were approximately 5.0 million . Awards vest according to each agreement, generally ratably over a three -year period, as long as the employee remains employed with the Company, and with respect to certain awards, based on the outcome of market or performance criteria. Restricted stock units and restricted stock are issued as either time-based (where the award vests ratably over time and is not subject to future performance targets and, accordingly, is initially recorded at the current market price at the time of grant) or performance-based (where the award is recorded at fair value at the time of grant and vesting of the award, if any, is based on achieving certain financial targets, currently based on shareholder return). The restricted stock units have the right to receive dividend equivalents in cash and holders of restricted stock have the right to receive dividends. The performance-based awards accrue dividends that are payable upon settlement of the award. Expense for time-based grants is recognized under a straight-line method. For grants with a market condition, which is generally a factor outside of the Company's financial performance, such as a market index, expense is recognized under a graded expense attribution method. For grants based solely on the Company's financial performance, expense is recognized under a graded expense attribution method if it is probable that the performance targets will be achieved. Total stock-based compensation expense for the three and nine months ended September 30, 2018 was $4.6 million and $13.0 million , respectively, and for the three and nine months ended September 30, 2017 was $4.0 million and $11.6 million , respectively. The following tables present the stock plan activity for the nine months ended September 30, 2018 and 2017 for restricted stock units, restricted stock and stock options (performance-based awards are reflected at the target amount of the grant): Restricted Stock Units ("RSU") 2018 2017 Units Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value Outstanding January 1, 265,002 $ 56.08 — $ — Granted 356,148 53.18 269,055 55.95 Exercised (88,371 ) 44.50 — — Forfeited (21,701 ) 53.56 (3,986 ) 53.84 Outstanding September 30, 511,078 $ 56.17 265,069 $ 56.07 Time-based RSUs outstanding 267,314 $ 52.45 135,923 $ 49.27 Performance-based RSUs outstanding 243,764 $ 60.25 129,146 $ 63.23 Restricted Stock ("RS") 2018 2017 Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Outstanding January 1, 715,098 $ 32.21 1,274,713 $ 28.95 Granted 17,052 51.31 18,179 48.13 Exercised (238,816 ) 27.47 (432,424 ) 26.35 Forfeited (55,708 ) 29.16 (131,171 ) 21.07 Outstanding September 30, 437,626 $ 35.93 729,297 $ 32.39 Time-based RSs outstanding 332,868 $ 38.25 422,180 $ 37.47 Performance-based RSs outstanding 104,758 $ 28.54 307,117 $ 25.40 Stock Options 2018 2017 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Outstanding January 1, 415,459 $ 31.67 434,268 $ 31.89 Granted — — — — Exercised (14,236 ) 23.58 (279 ) 48.82 Forfeited — — — — Outstanding September 30, 401,223 $ 31.96 433,989 $ 31.90 Time-based stock options outstanding 348,137 $ 33.23 366,667 $ 33.42 Performance-based stock options outstanding 53,086 $ 23.58 67,322 $ 23.58 |
Income (Loss) per Share
Income (Loss) per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Income (Loss) per Share | Income (Loss) per Share Basic income (loss) per share is calculated using the weighted average number of shares of common stock outstanding during the period. In addition, net income (loss) applicable to participating securities and the participating securities are both excluded from the computation of basic income (loss) per share. Diluted income (loss) per share is calculated using the weighted average number of shares of common stock outstanding during the period, including restricted stock outstanding. If there is net income during the period, the dilutive impact of common stock equivalents outstanding would also be reflected. On September 28, 2018, CyrusOne Inc. completed a public offering of 6.7 million shares of its common stock for $398.2 million , net of underwriting discounts and expenses of approximately $17.2 million . In connection with this offering, on September 25, 2018, CyrusOne Inc. entered into a forward sale agreement with Morgan Stanley & Co. LLC with respect to an additional 2.5 million shares of its common stock. The forward sale agreement expires in September 2019. This contract had an immaterial impact on our diluted share count at September 30, 2018. The following table reflects the computation of basic and diluted net income (loss) per share for the three and nine months ended September 30, 2018 and 2017 : IN MILLIONS, except per share amounts Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Basic Diluted Basic Diluted Basic Diluted Basic Diluted Numerator: Net income (loss) $ (42.4 ) $ (42.4 ) $ (55.1 ) $ (55.1 ) $ 107.0 $ 107.0 $ (86.3 ) $ (86.3 ) Less: Restricted stock dividends (0.3 ) (0.3 ) (0.2 ) (0.2 ) (0.8 ) (0.8 ) (0.7 ) (0.7 ) Net income (loss) available to stockholders $ (42.7 ) $ (42.7 ) $ (55.3 ) $ (55.3 ) $ 106.2 $ 106.2 $ (87.0 ) $ (87.0 ) Denominator: Weighted average shares outstanding-basic 98.8 98.8 90.4 90.4 97.8 97.8 87.5 87.5 Performance-based restricted stock and units — — 0.6 — Weighted average shares outstanding-diluted 98.8 90.4 98.4 87.5 EPS: Net income (loss) per share-basic $ (0.43 ) $ (0.61 ) $ 1.09 $ (0.99 ) Effect of dilutive shares: Net income (loss) per share-diluted $ (0.43 ) $ (0.61 ) $ 1.08 $ (0.99 ) |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company has a strategic partnership with GDS, a developer and operator of high-performance, large-scale data centers in China. In connection with our investment in GDS, the Company entered into an agreement with GDS for the joint marketing of each company’s data centers. Also as a part of the agreement, the Company's Chief Executive Officer joined the board of directors of GDS on June 22, 2018. For the three and nine months ended September 30, 2018 , the Company incurred $0.4 million and $0.9 million , respectively, of commission and referral charges and accrued expenses payable to GDS. The commission and referral charges were capitalized as deferred leasing costs and will be amortized over the terms of the respective customer leases. No significant referral expense was recognized by the Company in 2018 or 2017. We have not recognized any referral revenue related to the agreement with GDS in 2018 or 2017. See Note 5, "Equity Investment", for additional information related to our GDS investment. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Provided we continue to qualify for taxation as a REIT, we are generally not subject to corporate level federal income tax on the earnings distributed currently to our stockholders. It is our policy and intent, subject to change, to distribute 100% of our taxable income and therefore, except as discussed below, no provision is required in the accompanying financial statements for federal income taxes with regards to activities of CyrusOne Inc. and its subsidiary pass-through entities. The activities of our TRSs include performing services for our customers that would otherwise be considered impermissible for REITs. While CyrusOne Inc. and the Operating Partnership do not pay federal income taxes, we are still subject to foreign, state, and local income taxes in certain of the locations in which we conduct business. Income tax expense was $0.2 million and $2.0 million for the three and nine months ended September 30, 2018 , respectively, and $0.9 million and $2.0 million for the three and nine months ended September 30, 2017 , respectively. As of September 30, 2018 , we have a $68.7 million deferred tax liability, included in the Consolidated Balance Sheet for foreign income taxes associated with the Zenium acquisition. As of December 31, 2017, we had no deferred tax liability. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We lease certain data center facilities and equipment from third parties. Operating lease expense was $0.9 million and $5.0 million for the three and nine months ended September 30, 2018 , respectively, and $2.1 million and $6.1 million for the three and nine months ended September 30, 2017 , respectively. Certain of these leases provide for renewal options with fixed rent escalations beyond the initial lease term. As of September 30, 2018 , future minimum lease payments required under operating leases having initial or remaining non-cancellable lease terms in excess of one year are as follows (in millions): 2018 $ 1.3 2019 4.8 2020 4.3 2021 3.1 2022 3.1 Thereafter 43.9 Total $ 60.5 As of September 30, 2018 , we had outstanding letters of credit of $7.8 million as security for obligations under the terms of our lessee agreements. We have entered into non-cancellable contracted commitments for construction of data center facilities and acquisition of equipment. As of September 30, 2018 , these commitments were approximately $293.2 million and are expected to be incurred over the next one to two years. In addition, we have entered into equipment and utility power contracts, which require minimum purchase commitments for power. These agreements range from one to two years and provide for payments for early termination or require minimum payments for the remaining term. As of September 30, 2018 , the minimum commitments for these arrangements were approximately $53.0 million . During the normal course of business, the Company and its subsidiaries have made certain indemnities and commitments to customers, vendors and associated parties related to the use, protection and security of intellectual property and claims for negligence or willful misconduct. Further, customer contracts generally require specified levels of performance related to uninterrupted service and cooling temperatures. Also in the normal course of our business, the Company is involved in legal, tax and regulatory proceedings arising from the conduct of our business activities. Management assesses the probability that these performance standards, credits, claims or indemnities have been incurred and liabilities or asset reserves are established for loss contingencies when the losses associated are deemed to be probable and the loss can be reasonably estimated. Based on information currently available, we believe that the outcome of such matters will not, individually or in the aggregate, have a material effect on our consolidated financial statements. |
Guarantors
Guarantors | 9 Months Ended |
Sep. 30, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Guarantors | Guarantors The 2024 Notes and 2027 Notes issued by CyrusOne LP (the “LP Co-Issuer”) and CyrusOne Finance Corp. (the “Finance Co-Issuer” and, together with the LP Co-Issuer, the “Co-Issuers”) are fully and unconditionally and jointly and severally guaranteed on a senior unsecured basis. The guarantors include CyrusOne Inc. (the “Parent Guarantor”), the General Partner and certain domestic wholly-owned subsidiaries of the Operating Partnership (together with the General Partner, the “Guarantor Subsidiaries”; the Guarantor Subsidiaries together with the Parent Guarantor, the “Guarantors”). As of September 30, 2018 and 2017 , non-guarantors are all of our foreign subsidiaries and certain domestic subsidiaries (collectively, the “Non-Guarantors”). The foreign subsidiaries we acquired upon our acquisition of Zenium are classified as Non-Guarantors. The indentures governing the 2024 Notes and 2027 Notes contain affirmative and negative covenants customarily found in indebtedness of this type, including covenants that restrict, subject to certain exceptions, the Company’s ability to: incur secured or unsecured indebtedness; pay dividends or distributions on its equity interests, or redeem or repurchase equity interests of the Company; make certain investments or other restricted payments; enter into transactions with affiliates; enter into agreements limiting the ability of the Operating Partnership’s subsidiaries to pay dividends or make certain transfers and other payments to the Operating Partnership or to other subsidiaries; sell assets; and merge, consolidate or transfer all or substantially all of the operating partnership’s assets. The Company and its subsidiaries are also required to maintain total unencumbered assets of at least 150% of their unsecured debt on a consolidated basis, subject to certain qualifications set forth in the indenture. Notwithstanding the foregoing, the covenants contained in the indentures do not restrict the Company’s ability to pay dividends or distributions to stockholders to the extent (i) no default or event of default exists or is continuing under the indentures and (ii) the Company believes in good faith that we qualify as a REIT under the Code and the payment of such dividend or distribution is necessary either to maintain its status as a REIT or to enable it to avoid payment of any tax that could be avoided by reason of such dividend or distribution. Subject to the provisions of the indentures governing the 2024 Notes and 2027 Notes, in certain circumstances, a Guarantor may be released from its guarantee obligation, including: • upon the sale or other disposition (including by way of consolidation or merger) of such Guarantor or of all of the capital stock of such Guarantor such that such Guarantor is no longer a restricted subsidiary under the indentures, • upon the sale or disposition of all or substantially all of the assets of the Guarantor, • upon the LP Co-issuer designating such Guarantor as an unrestricted subsidiary under the terms of the indentures, • if such Guarantor is no longer a guarantor or other obligor of any other indebtedness of the LP Co-issuer or the Parent Guarantor, • upon the LP Co-issuer designating such Guarantor as an excluded subsidiary under the terms of the indentures, • upon the defeasance or discharge of the 2024 Notes or 2027 Notes, as applicable, in accordance with the terms of the indentures, and • upon the 2024 Notes or 2027 Notes, as applicable, being rated investment grade by at least two rating agencies and no default or event of default shall have occurred and be continuing. The Parent Guarantor is a REIT whose only material asset is its ownership of operating partnership units of the LP Co-Issuer. The LP Co-Issuer and its subsidiaries hold substantially all the assets of the Company. The LP Co-Issuer conducts the operations of the business, along with its subsidiaries. The Finance Co-Issuer does not have any operations or revenues. The Guarantor Subsidiaries include substantially all of our domestic operations and include approximately 85% of our gross operating real estate. The Non-Guarantors include substantially all of our foreign operations, primarily in the United Kingdom, Germany and Singapore. The Non-Guarantors' assets also include the ownership of our equity investment in GDS of $282.2 million as of September 30, 2018 , which was not an investment as of or for the three and nine months ended September 30, 2017 . The equity investment has not made any distributions for the three and nine months ended September 30, 2018 , but the Company did recognize an unrealized fair value loss of $36.6 million and an unrealized fair value gain of $106.6 million with respect to this investment, which is included in net income for the three and nine months ended September 30, 2018 , respectively. The following schedules present the condensed consolidating balance sheets as of September 30, 2018 and December 31, 2017 , and the condensed consolidating statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2018 and 2017 , and the statements of cash flows for the nine months ended September 30, 2018 and 2017 , for the Parent Guarantor, General Partner, each Co-Issuer, Guarantor Subsidiaries, and Non-Guarantors. Eliminations and consolidation adjustments primarily relate to the elimination of investments in subsidiaries and equity (loss) earnings related to investments in subsidiaries (in millions). Condensed Consolidating Balance Sheets As of September 30, 2018 Parent General LP Finance Guarantor Subsidiaries Non- Eliminations/Consolidations Total Total investment in real estate, net $ — $ — $ — $ — $ 3,470.1 $ 620.0 $ 29.7 $ 4,119.8 Cash and cash equivalents — — — — 44.9 16.1 — 61.0 Investment in subsidiaries 2,236.5 22.4 3,042.4 — — — (5,301.3 ) — Rent and other receivables, net — — — — 96.3 8.2 — 104.5 Intercompany receivable 22.5 — 1,701.4 — 4.3 — (1,728.2 ) — Equity investment — — — — — 282.2 — 282.2 Goodwill — — — — 455.1 — — 455.1 Intangible assets, net — — — — 184.3 64.1 — 248.4 Other assets — — 0.5 — 207.3 14.3 — 222.1 Total assets $ 2,259.0 $ 22.4 $ 4,744.3 $ — $ 4,462.3 $ 1,004.9 $ (6,999.8 ) $ 5,493.1 Debt, net $ — $ — $ 2,480.6 $ — $ — $ 95.6 $ — $ 2,576.2 Intercompany payable — — 22.5 — 1,701.4 4.3 (1,728.2 ) — Capital lease obligations and lease financing arrangements — — — — 108.3 54.4 — 162.7 Accounts payable and accrued expenses — — 4.7 — 81.2 10.9 — 96.8 Construction costs payable — — — — 153.7 6.8 — 160.5 Dividends payable 49.7 — — — — — — 49.7 Deferred revenue and prepaid rents — — — — 136.4 3.1 — 139.5 Deferred tax liability — — — — — 68.7 — 68.7 Total liabilities 49.7 — 2,507.8 — 2,181.0 243.8 (1,728.2 ) 3,254.1 Total stockholders' equity 2,209.3 22.4 2,236.5 — 2,281.3 761.1 (5,271.6 ) 2,239.0 Total liabilities and equity $ 2,259.0 $ 22.4 $ 4,744.3 $ — $ 4,462.3 $ 1,004.9 $ (6,999.8 ) $ 5,493.1 As of December 31, 2017 Parent General LP Finance Guarantor Subsidiaries Non- Eliminations/Consolidations Total Total investment in real estate, net $ — $ — $ — $ — $ 3,014.9 $ 25.8 $ 17.7 $ 3,058.4 Cash and cash equivalents — — — — 151.2 0.7 — 151.9 Investment in subsidiaries 1,718.0 17.2 2,190.2 — — — (3,925.4 ) — Rent and other receivables, net — — — — 84.6 2.6 — 87.2 Intercompany receivable 20.0 — 1,656.4 — — — (1,676.4 ) — Equity investment — — — — — 175.6 — 175.6 Goodwill — — — — 455.1 — — 455.1 Intangible assets, net — — — — 203.0 — — 203.0 Other assets — — 0.5 — 177.7 2.7 — 180.9 Total assets $ 1,738.0 $ 17.2 $ 3,847.1 $ — $ 4,086.5 $ 207.4 $ (5,584.1 ) $ 4,312.1 Debt, net $ — $ — $ 2,089.4 $ — $ — $ — $ — $ 2,089.4 Intercompany payable — — 20.0 — 1,656.4 — (1,676.4 ) — Capital lease obligations and lease financing arrangements — — — — 110.0 32.0 — 142.0 Accounts payable and accrued expenses — — 19.7 — 77.3 0.9 — 97.9 Construction costs payable — — — — 115.5 — — 115.5 Dividends payable 41.8 — — — — — — 41.8 Deferred revenue and prepaid rents — — — — 110.8 0.8 — 111.6 Total liabilities 41.8 — 2,129.1 — 2,070.0 33.7 (1,676.4 ) 2,598.2 Total stockholders' equity 1,696.2 17.2 1,718.0 — 2,016.5 173.7 (3,907.7 ) 1,713.9 Total liabilities and equity $ 1,738.0 $ 17.2 $ 3,847.1 $ — $ 4,086.5 $ 207.4 $ (5,584.1 ) $ 4,312.1 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Three Months Ended September 30, 2018 Parent General LP Finance Guarantor Subsidiaries Non- Eliminations/ Consolidations Total Revenue $ — $ — $ — $ — $ 201.8 $ 4.8 $ — $ 206.6 Total operating expenses — — — — 180.2 6.2 — 186.4 Operating income — — — — 21.6 (1.4 ) — 20.2 Interest expense — — (29.2 ) — — (0.7 ) 4.1 (25.8 ) Unrealized loss on marketable equity investment — — — — — (36.6 ) — (36.6 ) Loss on early extinguishment of debt — — — — — — — — Net income (loss) before income taxes — — (29.2 ) — 21.6 (38.7 ) 4.1 (42.2 ) Income tax (benefit) expense — — — — (0.7 ) 0.5 — (0.2 ) Equity earnings (loss) related to investment in subsidiaries (48.3 ) (0.5 ) (19.1 ) — — — 67.9 — Net income (loss) (48.3 ) (0.5 ) (48.3 ) — 20.9 (38.2 ) 72.0 (42.4 ) Other comprehensive income (loss) — — — — — (1.8 ) — (1.8 ) Comprehensive income (loss) $ (48.3 ) $ (0.5 ) $ (48.3 ) $ — $ 20.9 $ (40.0 ) $ 72.0 $ (44.2 ) Three Months Ended September 30, 2017 Parent General LP Finance Guarantor Subsidiaries Non- Eliminations/Consolidations Total Revenue $ — $ — $ — $ — $ 173.9 $ 1.4 $ — $ 175.3 Total operating expenses — — — — 210.9 0.7 — 211.6 Operating income — — — — (37.0 ) 0.7 — (36.3 ) Interest expense — — (19.9 ) — — (0.7 ) 2.7 (17.9 ) Loss on early extinguishment of debt — — — — — — — — Net (loss) income before income taxes — — (19.9 ) — (37.0 ) — 2.7 (54.2 ) Income tax expense — — — — (0.9 ) — — (0.9 ) Equity (loss) earnings related to investment in subsidiaries (57.8 ) (0.5 ) (37.9 ) — — — 96.2 — Net (loss) income (57.8 ) (0.5 ) (57.8 ) — (37.9 ) — 98.9 (55.1 ) Other comprehensive income (loss) — — — — — (0.1 ) — (0.1 ) Comprehensive (loss) income $ (57.8 ) $ (0.5 ) $ (57.8 ) $ — $ (37.9 ) $ (0.1 ) $ 98.9 $ (55.2 ) Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Nine Months Ended September 30, 2018 Parent General LP Finance Guarantor Subsidiaries Non- Eliminations/ Consolidations Total Revenue $ — $ — $ — $ — $ 592.0 $ 8.1 $ — $ 600.1 Total operating expenses — — — — 516.8 8.4 — 525.2 Operating income — — — — 75.2 (0.3 ) — 74.9 Interest expense — — (79.3 ) — — (2.1 ) 12.0 (69.4 ) Unrealized gain on marketable equity investment — — — — — 106.6 — 106.6 Loss on early extinguishment of debt — — (3.1 ) — — — — (3.1 ) Net income (loss) before income taxes — — (82.4 ) — 75.2 104.2 12.0 109.0 Income tax expense — — — — (2.5 ) 0.5 — (2.0 ) Equity earnings (loss) related to investment in subsidiaries 93.3 0.9 175.7 — — — (269.9 ) — Net income (loss) 93.3 0.9 93.3 — 72.7 104.7 (257.9 ) 107.0 Other comprehensive income (loss) — — — — — (1.7 ) — (1.7 ) Comprehensive income (loss) $ 93.3 $ 0.9 $ 93.3 $ — $ 72.7 $ 103.0 $ (257.9 ) $ 105.3 Nine Months Ended September 30, 2017 Parent General LP Finance Guarantor Subsidiaries Non- Eliminations/Consolidations Total Revenue $ — $ — $ — $ — $ 487.5 $ 4.0 $ — $ 491.5 Total operating expenses — — — — 484.8 6.5 — 491.3 Operating income — — — — 2.7 (2.5 ) — 0.2 Interest expense — — (53.6 ) — — (2.0 ) 7.6 (48.0 ) Loss on early extinguishment of debt — — (36.5 ) — — — — (36.5 ) Net (loss) income before income taxes — — (90.1 ) — 2.7 (4.5 ) 7.6 (84.3 ) Income tax expense — — — — (2.0 ) — — (2.0 ) Equity (loss) earnings related to investment in subsidiaries (93.9 ) (0.9 ) (3.8 ) — (4.5 ) — 103.1 — Net (loss) income (93.9 ) (0.9 ) (93.9 ) — (3.8 ) (4.5 ) 110.7 (86.3 ) Other comprehensive income (loss) — — — — — — — — Comprehensive income (loss) $ (93.9 ) $ (0.9 ) $ (93.9 ) $ — $ (3.8 ) $ (4.5 ) $ 110.7 $ (86.3 ) Condensed Consolidating Statements of Cash Flows Nine Months Ended September 30, 2018 Parent Guarantor General Partner LP Co-issuer Finance Co-issuer Guarantor Subsidiaries Non- Guarantors Eliminations/Consolidations Total Net cash (used in) provided by operating activities $ — $ — $ (89.2 ) $ — $ 284.9 $ (4.8 ) $ 12.0 $ 202.9 Cash flows from investing activities: Asset acquisitions, primarily real estate, net of cash acquired — — — — — (461.8 ) — (461.8 ) Investment in real estate — — — — (608.5 ) (10.7 ) (12.0 ) (631.2 ) Investment in subsidiaries (551.9 ) (5.5 ) (663.2 ) — — — 1,220.6 — Return of investment 132.3 — — — — — (132.3 ) — Intercompany borrowings 5.1 — (44.8 ) — — — 39.7 — Net cash (used in) provided by investing activities (414.5 ) (5.5 ) (708.0 ) — (608.5 ) (472.5 ) 1,116.0 (1,093.0 ) Cash flows from financing activities: Issuance of common stock, net 551.9 — — — — — — 551.9 Dividends paid (132.3 ) — (132.3 ) — — — 132.3 (132.3 ) Intercompany borrowings — — (5.1 ) — 44.8 — (39.7 ) — Proceeds from debt, net — — 1,655.4 — — 9.7 — 1,665.1 Payments on debt — — (1,272.7 ) — — — — (1,272.7 ) Payments on capital lease obligations and lease financing arrangements — — — — (6.5 ) (1.3 ) — (7.8 ) Tax payment upon exercise of equity awards (5.1 ) — — — — — — (5.1 ) Contributions/distributions from parent — 5.5 551.9 — 179.0 484.2 (1,220.6 ) — Net cash provided by (used in) financing activities 414.5 5.5 797.2 — 217.3 492.6 (1,128.0 ) 799.1 Effect of exchange rate changes on cash, cash equivalents and restricted cash — — — — — 0.1 — 0.1 Net increase (decrease) in cash, cash equivalents and restricted cash — — — — (106.3 ) 15.4 — (90.9 ) Cash, cash equivalents and restricted cash at beginning of period — — — — 151.2 0.7 — 151.9 Cash, cash equivalents and restricted cash at end of period $ — $ — $ — $ — $ 44.9 $ 16.1 $ — $ 61.0 Nine Months Ended September 30, 2017 Parent General LP Finance Guarantor Subsidiaries Non- Eliminations/Consolidations Total Net cash (used in) provided by operating activities $ — $ — $ (51.6 ) $ — $ 234.5 $ (0.4 ) $ 7.6 $ 190.1 Cash flows from investing activities: Asset acquisitions, primarily real estate, net of cash acquired — — — — (492.3 ) — — (492.3 ) Investment in real estate — — — — (701.5 ) — (7.6 ) (709.1 ) Investment in subsidiaries (408.2 ) (4.1 ) (408.2 ) — (0.1 ) — 820.6 — Return of investment 107.4 — — — — — (107.4 ) — Intercompany borrowings 6.0 — (568.9 ) — — — 562.9 — Net cash (used in) provided by investing activities (294.8 ) (4.1 ) (977.1 ) — (1,193.9 ) — 1,268.5 (1,201.4 ) Cash flows from financing activities: Issuance of common stock, net 408.8 — — — — — — 408.8 Dividends paid (107.4 ) — (107.4 ) — — — 107.4 (107.4 ) Intercompany borrowings — — (6.0 ) — 568.9 — (562.9 ) — Proceeds from debt, net — — 1,946.0 — — — — 1,946.0 Payments on debt — — (1,212.1 ) — — — — (1,212.1 ) Payments on capital lease obligations and lease financing arrangements — — — — (6.5 ) (0.8 ) — (7.3 ) Tax payment upon exercise of equity awards (6.6 ) — — — — — — (6.6 ) Contributions/distributions from parent — 4.1 408.2 — 408.2 0.1 (820.6 ) — Net cash provided by (used in) financing activities 294.8 4.1 1,028.7 — 970.6 (0.7 ) (1,276.1 ) 1,021.4 Net increase (decrease) in cash, cash equivalents and restricted cash — — — — 11.2 (1.1 ) — 10.1 Cash, cash equivalents and restricted cash at beginning of period — — — — 13.4 1.2 — 14.6 Cash, cash equivalents and restricted cash at end of period $ — $ — $ — $ — $ 24.6 $ 0.1 $ — $ 24.7 |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 9 Months Ended |
Sep. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow Information Supplemental cash flow information for the nine months ended September 30, 2018 and 2017 is summarized below (in millions): Nine months ended September 30, 2018 2017 Supplemental disclosure of cash flow information: Cash paid for interest, net of amounts capitalized of $15.9 million and $12.4 million in 2018 and 2017, respectively $ 98.5 $ 58.2 Cash paid for income taxes 3.3 1.9 Non-cash investing and financing activities: Construction costs and other payables 160.5 133.6 Dividends payable 49.7 39.6 Debt assumed 86.3 — Capital lease obligation assumed 25.0 2.2 Real estate additions from entering into and modifying capital leases 4.6 — Transfer of land held for future development to construction in progress 13.5 12.6 Transfer of construction in progress to gross operating real estate 554.7 733.9 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 8, 2018, the Company made a $12 million investment in exchange for a 10% equity interest in ODATA Brasil S.A. and ODATA Colombia S.A.S. (collectively "ODATA"). ODATA, a Brazilian headquartered company, specializes in providing colocation services to wholesale customers, such as hyperscale cloud providers, financial services and telecommunications companies, and also to enterprises across multiple industries. In connection with this investment, CyrusOne and ODATA entered a commercial agreement covering leasing activity with CyrusOne customers in the ODATA portfolio. In addition, our Chief Technology Officer will join the ODATA board of directors. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company, as well as all wholly-owned subsidiaries and any consolidated variable interest entities. All inter-company balances and transactions have been eliminated in consolidation. |
Investment in Real Estate | Investment in Real Estate Investment in real estate consists of land, buildings, improvements and equipment utilized in our data center operations and land held for future development. Additions and improvements which extend an asset’s useful life or increase its functionality are capitalized and depreciated over the asset’s remaining life. Maintenance and repairs are expensed as incurred. We capitalize project costs related to the development and construction of our data centers including interest, real estate taxes, insurance, and other direct costs. Indirect project costs not clearly related to development and construction are expensed as incurred. Indirect project costs that clearly relate to development and construction are capitalized and allocated to the developments to which they relate. For each development, capitalization begins when we determine that the development is probable and significant development activities are underway. We suspend capitalization at such time as significant development activity ceases, but future development is still probable. We cease capitalization when the developments or other improvements are completed and ready for their intended use, or if the intended use changes such that capitalization is no longer appropriate. Building and related improvements are generally considered ready for their intended use when the designated premises, which could be less than the entire building, is ready for occupancy. When we are the lessee of the property and we are involved in the construction of structural improvements, we are deemed the accounting owner of the leased real estate. At inception, the fair value of the building, excluding land, is recorded as a leasehold asset, and the construction and modification costs to the building that are not funded by us are recorded as a liability which is recorded as lease financing arrangements. As construction progresses, the asset and obligation increase by the cost of the structural improvements, which approximate the fair value. At completion of the construction, if our involvement is deemed to continue, the leasehold asset is placed in service and depreciation commences. Depreciation is calculated using the straight-line method over the estimated useful life of the asset. Useful lives range from nine to thirty years for buildings, three to thirty years for building improvements, and two to twenty years for equipment. Leasehold improvements are amortized over the shorter of the asset’s useful life or the remaining lease term, including renewal options which are reasonably assured, and to the lesser of the fair value or financing arrangement obligation estimated at the end of the lease term. |
Impairment Losses | Impairment Losses If events or circumstances indicate that the carrying amount of the real estate investment, including leased real estate investments, may not be recoverable, we make an assessment of the recoverability of the asset, usually at the individual property level, by comparing the carrying amount of the asset to our estimate of the aggregate undiscounted future operating cash flows expected to be generated over the holding period of the asset including its eventual disposition. If the carrying amount, including related real estate intangible assets, exceeds the aggregate undiscounted future operating cash flows, we recognize an impairment loss to the extent the carrying amount exceeds the estimated fair value of the asset. |
Business Combinations and Asset Acquisitions | Business Combinations and Asset Acquisitions We evaluate whether a transaction is a business combination or an asset acquisition by determining whether the set of assets is a business. When substantially all of the fair value of gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, the transaction is accounted for as an asset acquisition. In an asset acquisition, the purchase price paid for assets acquired is allocated between identified tangible and intangible assets acquired based on relative fair value. Transaction costs associated with asset acquisitions are capitalized. When substantially all of the fair value is not concentrated in a group of similar identifiable assets, the set of assets will generally be considered a business and the Company applies the purchase method for business combinations, where all tangible and identifiable intangible assets acquired and all liabilities assumed are recorded at fair value. Any excess purchase price is recorded as goodwill. If the value of the acquisition is greater than the purchase price, a bargain purchase gain would be recorded. Transaction costs associated with business combinations are expensed as incurred. The following discussion applies to our initial determination of fair value and the resulting subsequent accounting which is generally applicable to both asset acquisitions and business combinations. The fair value of any tangible real estate assets acquired is determined by valuing the building as if it were vacant, and the “as-if-vacant” value is then allocated to land, buildings, equipment and improvements. Land values are derived from appraisals, and building values are calculated as replacement cost less depreciation or estimates of the relative fair value of these assets using net operating income capitalization rates, discounted cash flow analysis or similar methods. We determine in-place lease values based on our evaluation of the specific characteristics of each tenant’s lease agreement and by applying a fair value model. The estimates of fair value of in-place leases include an estimate of carrying costs during the expected lease up periods for the respective leasable area considering current market conditions. In estimating fair value of in-place leases, we consider items such as real estate taxes, insurance, leasing commissions, tenant improvements and other operating expenses to execute similar leases as well as projected rental revenue and carrying costs during the expected lease up period. We amortize the value of in-place leases acquired to expense over the approximate weighted average remaining term of the leases, adjusted for projected tenant turnover, on a composite basis. We determine the value of above-market and below-market in-place leases for acquired properties based on the present value (using an interest rate that reflects the risks associated with the leases acquired) of the difference between (1) the contractual amounts to be paid pursuant to the in-place leases and (2) estimates of current market lease rates for the corresponding in-place leases, measured over a period equal to (i) the remaining non-cancellable lease term for above-market leases, or (ii) the remaining non-cancellable lease term plus any fixed rate renewal options for below-market leases. We record the fair value of above-market and below-market leases as intangible assets or liabilities, and amortize them as an adjustment to revenue over the lease term. Due to the heavily negotiated terms of data center leases and their relative shorter-term maturity, the value of above-market or below-market in-place leases generally does not represent a significant portion of the fair value of the related real estate acquired. We determine the value of other contractual rights based on our evaluation of the specific characteristics of the underlying contracts and by applying a fair value model to the projected cash flows or usage rights that considers the timing and risks associated with the cash flows or usage. We amortize the value of finite contractual rights over the remaining contract period. Indefinite-lived contractual rights are not amortized but are evaluated for impairment at least annually. We determine the fair value of assumed debt by calculating the net present value of the scheduled debt service payments using current market-based terms for interest rates for debt with similar terms that management believes we could obtain and remaining maturities. Any difference between the fair value and stated value of the assumed debt is recorded as a discount or premium and amortized over the remaining life of the loan. |
Cash and Cash Equivalents | Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents include all non-restricted cash held in financial institutions and other non-restricted highly liquid short-term investments with original maturities of three months or less. |
Restricted Cash | Restricted cash includes cash equivalents held in our name to collateralize standby letters of credit or its use is restricted by contract or regulation. |
Equity Investment | Equity Investment Our equity investment, which does not qualify for equity method accounting, is classified as “available for sale” and is carried at fair value. Effective beginning January 1, 2018, changes in the fair value are reported as a component of net income (loss). Prior to January 1, 2018, such changes in fair value were reported as a component of comprehensive income (loss). See “ Recently Adopted Accounting Pronouncements ” section below. Dividends paid from operating profits are reported as a component of net income (loss), while other dividends are reported as a return of capital. |
Rent and Other Receivables | Rent and Other Receivables Receivables consist principally of trade receivables from customers with expected credit losses recorded as an allowance for doubtful accounts. The allowance for doubtful accounts is estimated based upon historic patterns of credit losses for aged receivables as well as specific provisions for certain identifiable, potentially uncollectible balances. |
Deferred Leasing and Other Contract Costs and Deferred Financing Costs | Deferred Leasing and Other Contract Costs Deferred leasing costs include leasing commissions to third party brokers, incremental commissions to employees and external and internal legal costs, which are capitalized and amortized over the term of the customer lease. Deferred leasing costs are presented in other assets and amortization of deferred leasing costs is presented in depreciation and amortization expense. If a lease terminates prior to the expiration of the lease, the remaining unamortized cost is written off to amortization expense. Incremental commission costs paid in obtaining managed service contracts are amortized based on the transfer of goods or services to which the costs relate. The amortization expense is recognized over the contract term. Deferred Financing Costs Deferred financing costs include legal and bank issuance costs incurred in connection with issuance of debt, including costs associated with the issuance of our credit facility, and are presented as a direct reduction from the carrying amount of debt. These financing costs are deferred and amortized to expense over the term of the debt and are included as a component of interest expense. When debt is paid prior to its scheduled maturity date, or the underlying terms are materially modified, the remaining carrying value of deferred finance costs, along with certain other payments to lenders, is included in loss on early extinguishment of debt. |
Deferred Revenue, Prepaid Rents, and Revenue Recognition | Deferred Revenue and Prepaid Rents Deferred revenue is recorded when a customer makes a contractual payment in excess of revenues recognized in accordance with GAAP. Prepaid rent liability is recorded when a customer makes an advance payment or they are contractually obligated to pay any amounts in advance of the associated lease or service period. Revenue Recognition We adopted the new revenue recognition standard effective January 1, 2018. The information in this section describes our current revenue recognition policies. See the section below “ Recently Adopted Accounting Pronouncements ” for additional information related to the adoption. Our revenue primarily consists of colocation lease revenue, metered power reimbursements, managed services, equipment sales, and other services. We generally are not entitled to reimbursements for real estate taxes, insurance or other operating expenses. The colocation lease revenue and metered power reimbursements are recognized under the lease accounting standard and managed services, equipment sales, installations, and other services are recognized under the revenue accounting standard. Payment terms generally range from 30 to 120 days. An allowance for doubtful accounts is recognized when the collection of contractual rent, straight-line rent or customer reimbursements is deemed to be unlikely. Colocation Lease Revenue and Metered Power Reimbursements Colocation lease revenues are generally billed monthly in advance based on the leased space or contracted power. Some contracts have an initial free rent period or payments that escalate over the term of the contract. If rents escalate without the lessee gaining access to or control over additional leased space or power, at the beginning of the lease term, the rental payments are recognized as revenue on a straight-line basis over the term of the lease. If rents escalate because the lessee gains access to and control over additional leased space and power, revenue is recognized in proportion to the additional space or power in the periods that the lessee has control over the use of the additional space or power. The excess of revenue recognized over amounts contractually due is recognized as a straight-line receivable, which is included in other assets in our consolidated balance sheet. When a customer makes an advance payment or they are contractually obligated to pay amounts in advance of the associated lease period, a prepaid rent liability is recorded. When a customer makes a contractual payment in excess of revenues recognized in accordance with GAAP, a deferred revenue liability is recorded. This deferred revenue liability is generally recognized on a straight-line basis over the expected term of the lease, unless the pattern of service suggests otherwise. Some of our leases are structured on a full-service gross basis in which the customer pays a fixed amount for both colocation rent and power. The revenue for these types of leases is recorded in colocation lease revenue. Other leases provide that the customer will be separately billed for power based upon actual, metered usage. Some leases that include billing for metered power include an administrative fee that is charged to the customer. Metered power reimbursement revenue is generally billed one month in arrears, and an estimate of this revenue is accrued in the month that the associated power is provided. Managed Services Managed services include the provisioning of a full-service managed data center, monitoring customer computer equipment, managing backups and storage, utilization reporting and other related ancillary information technology services. Management service contracts generally range from one to five years. Revenue is measured based on the consideration specified in the contract and recognized over time as we satisfy the performance obligation. Equipment sales Equipment sold by us generally consists of servers, switches, networking equipment, cable infrastructure, and cabinets. Revenue is recognized at a point-in-time when control of the equipment transfers to the customer from the Company, which is deemed to take place upon delivery to the customer. Other services Other services are generally one-time services and include installation of customer equipment, performing customer system re-boots, server cabinet and cage management, power monitoring, shipping and receiving, resolving technical issues, and other non-recurring hands-on service requested by the customer. Installation services include mounting, wiring, and testing of customer owned equipment. The installation period is typically short term in nature, and accordingly, revenue from the installation of customer equipment will be recognized at a point-in-time once the installation is complete and the performance obligation is satisfied. Revenue from other services is recognized over time as the Company performs the service as the customer is determined to consume the benefits of the service as the Company performs. As allowed under GAAP, we have adopted the practical expedient that allows us not to disclose information about remaining performance obligations that have original expected durations of one year or less, the amount of the transaction price allocated to the remaining performance obligations and when we expect to recognize that amount as revenue for the year. We have also adopted the “as invoiced” practical expedient, whereby the Company recognizes revenue in the amount that directly corresponds to the amount of value transferred to the customer. |
Transaction, Acquisition, Integration and Other Related Expenses | Transaction, Acquisition, Integration and Other Related Expenses Transaction expenses represent incremental legal, accounting and professional fees incurred in connection with business combinations and the non-recurring, incremental expenses incurred after a business combination or asset acquisition. These expenditures are expensed as incurred and do not include any recurring costs from our ongoing operations. |
Income Taxes | Income Taxes We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (“the Code") and have qualified as a REIT since the year ended December 31, 2013. To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement that we distribute at least 90% of our "REIT taxable income", as defined by the Code, to our stockholders. As a REIT, we generally will not be subject to federal income tax at the corporate level, however, we are still subject to foreign, state and local income taxes in the locations in which we conduct business. We intend to operate in such a manner as to continue to qualify as a REIT, but no assurance can be given that we will operate in a manner so as to remain qualified as a REIT. If we fail to qualify as a REIT in any taxable year, we would be subject to federal income tax on our taxable income at regular corporate tax rates. As of September 30, 2018, we believe we are in compliance with all applicable REIT requirements. Since the year ended December 31, 2013, we have conducted certain non-REIT activities through taxable REIT subsidiaries (each, a "TRS"). Income recognized by our TRSs is subject to applicable federal, foreign, state, and local income and margin taxes. We have no significant taxes associated with our TRSs for the periods ended September 30, 2018 or 2017 . Deferred Income Taxes Deferred income taxes represent the tax effect of temporary differences between the book and tax basis of assets and liabilities. As of September 31, 2018, we have a $68.7 million deferred tax liability, included in the Consolidated Balance Sheet for foreign income taxes associated with the Zenium acquisition. See Note 4. Investment in Real Estate for further discussion. As of December 31, 2017, we had no deferred tax liability. We recognize the financial statement benefit of an uncertain tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions Gains or losses from translation of foreign operations where the local currency is the functional currency are included as components of other comprehensive income (loss). The financial position of foreign subsidiaries is translated at the exchange rates in effect at the end of the period, while revenues and expenses are translated at average exchange rates during the period. Gains or losses from foreign currency transactions are included in determining net income. |
Stock-Based Compensation Expense | Stock-Based Compensation Expense We have a stock-based incentive award plan for our employees and directors. Stock-based compensation expense associated with these awards is recognized in general and administrative expenses in our consolidated statements of operations. We measure stock-based compensation at the estimated fair value on the grant date and recognize the amortization of stock-based compensation expense over the requisite service period. Fair value is determined based on assumptions related to volatility, interest rates and our market and company performance. |
Income (Loss) Per Share | Income (Loss) Per Share Basic earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period excluding any unvested securities or unexercised options. Diluted earnings per share is calculated by adjusting basic earnings per share for the dilutive effect of the assumed exercise of securities and options, including the effect of shares issuable under our stock-based incentive plans. Our unvested share-based awards are considered participating securities and are reflected in the calculation of diluted earnings per share. During periods of net loss, the assumed exercise of securities and options is anti-dilutive and is not included in the calculation of earnings per share. |
Business Segments | Business Segments Our data centers have similar economic characteristics and customers across all geographic locations, and our service offerings and delivery of services are provided in a similar manner, using the same types of facilities and similar technologies. Our chief operating decision maker, the Company's Chief Executive Officer, reviews our financial information on an aggregate basis. As a result, we have concluded that we have one reportable business segment. |
Use of Estimates | Use of Estimates Preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates and assumptions are based on management’s knowledge of current events and actions that we may undertake in the future. Significant estimates include and are related to determining lease terms and revenue recognition, the fair value for purchase price allocations for business combinations and asset acquisitions, and the useful lives of real estate and other long-lived assets. Actual results may differ from these estimates and assumptions. |
Reclassifications | Reclassifications Certain financial information has been revised to conform to the current year presentation due to changes in the significance of the particular activity. The following items have been reclassified: Balance Sheet as of December 31, 2017 • Land related to construction in progress ( $8.7 million ) and land held for future development ( $63.8 million ) were previously included in investment in real estate - land ( $72.5 million ). • Notes receivable and long-term installment contracts are classified within other assets. These items were previously included in rent and other receivables ( $3.3 million ). • Construction costs payable are classified in a separate liability and were previously included in accounts payable and accrued expenses ( $115.5 million ). • Dividends payable are classified in a separate liability and were previously included in accounts payable and accrued expenses ( $41.8 million ). • Lease finance arrangements are classified in capital lease obligations and lease financing arrangements. These items were previously included in a separate line for lease finance arrangements ($ 131.9 million ). • Equity investment is classified in a separate asset account and was previously included in other assets ( $175.6 million ). Statement of Cash Flows for the period ended September 30, 2017 • The cash flow effect of the change in interest accrual is classified within accounts payable and accrued expenses. These items were previously combined with non-cash interest expense, net in the comparable prior year period ( $1.3 million ). • Debt issuance and debt extinguishment costs are classified within proceeds from debt, net. These items were previously included in separate lines, debt issuance costs ( $13.6 million ) and payment of debt extinguishment costs ( $30.4 million ), in the comparable prior year period. |
Recently Adopted Accounting Pronouncements and New Accounting Pronouncements | Recently Adopted Accounting Pronouncements On January 1, 2018, we adopted the Financial Accounting Standards Board ("FASB") pronouncement ASU 2014-09 with respect to revenue recognition. The revised guidance outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and superseded prior revenue recognition guidance, including industry-specific revenue guidance. The revised guidance replaced most existing revenue and real estate sale recognition guidance in GAAP. The standard specifically excludes lease contracts, which is our primary recurring revenue source; however, our revenue accounting for managed services and sales of real estate and equipment will follow the revised guidance. We adopted the new standard using the modified retrospective transition method, where financial statement presentations prior to the date of adoption are not adjusted. Transactions that were not closed as of the adoption date were adjusted to reflect the new standard and we recorded an adjustment to beginning retained earnings of $0.3 million . See Note 3 "Revenue Recognition" for further information regarding the adoption of the new accounting standard, including expanded quantitative and qualitative disclosures regarding revenue recognition. On January 1, 2018, we adopted ASU 2017-05, which requires the derecognition of a business in accordance with ASC 810, Consolidations, including instances in which the business is considered in substance real estate. In cases where a controlling interest in real estate was sold but a noncontrolling interest is retained, we may record a gain or loss related to both the sold and retained interests. The adoption of this standard did not have an impact on our condensed consolidated financial statements, but depending on future transactions, may in the future. On January 1, 2018, we adopted ASU 2016-01 related to equity investments. Equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) are to be measured at fair value with changes in fair value now recognized in net income. Previously changes in fair value for available for sale equity investments were recorded in other comprehensive income (loss). The adoption of the new standard was made through a cumulative-effect adjustment to beginning retained earnings of $75.6 million . Prior financial statement amounts were not adjusted. For the three months ended September 30, 2018 , the unrealized loss on investment was $36.6 million . For the nine months ended September 30, 2018 , the unrealized gain on investment was $106.6 million . New Accounting Pronouncements In August 2018, the SEC issued Securities Act Release No. 33-10532, Disclosure Update and Simplification, which amends certain of its disclosure requirements and is intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information provided to investors. The amendments will become effective on November 5, 2018. Among the amendments is the requirement to present the changes in shareholders’ equity in the interim financial statements (either in a separate statement or footnote) in quarterly reports on Form 10-Q. Based on the effective date of the amendments and Exchange Act Forms Compliance and Disclosure Interpretation Question 105.09 issued by the staff of the SEC’s Division of Corporation Finance on September 25, 2018 and updated on October 4, 2018, the Company’s first presentation of changes in shareholders’ equity will be in its Form 10-Q for the quarter ending March 31, 2019. In August 2018, the FASB issued ASU 2018-15, which clarifies the accounting for implementation costs incurred in a hosting arrangement that is a service contract. Capitalization of these implementation costs are accounted for under the same guidance as implementation costs incurred to develop or obtain internal-use software and recorded as a prepaid asset. These capitalized costs are to be expensed ratably over the hosting arrangement term as operating expense, along with the service fees. The guidance is effective for periods beginning after December 15, 2019. Early adoption is allowed. The Company does not plan to early adopt this guidance and is evaluating the impact of the new standard. In August 2018, the FASB issued ASU 2018-13, which changes the fair value measurement disclosure requirements of ASC 820. Under this ASU, key provisions include new, eliminated and modified disclosure requirements. The guidance is effective for periods beginning after December 15, 2019. Early adoption is allowed. The Company does not plan to early adopt this guidance and is evaluating the impact of the new standard. In June 2018, the FASB issued ASU 2018-07, which simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under this ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. The Company accounts for its share-based payments to our board of director members in the same manner as employees. Other than to our board of director members, the Company does not award share-based payments to any other nonemployees. Therefore, we do not expect this accounting pronouncement to significantly impact our financial statements. The guidance is effective for periods beginning after December 15, 2018. Early adoption is allowed. In February 2016, the FASB issued ASU 2016-02, regarding the accounting for leases for both lessees and lessors. In July 2018, ASU 2016-02 was amended, providing another transition method by allowing companies to initially apply the new lease standard in the year of adoption and not the earliest comparative period. The lease standard amendment also provided a practical expedient for an accounting policy election for lessors, by class of underlying asset, to not separate nonlease components from the associated lease components as long as the timing and pattern of transfer are the same for the nonlease and lease components. Lessees will recognize a right-of-use asset and a lease liability for leases (other than leases that meet the definition of a short-term lease). The liability will be equal to the present value of lease payments adjusted for any initial direct costs of the lease, lease incentives or early lease payments. For income statement purposes, the FASB retained a dual classification model, requiring lessees to classify leases as either operating or finance. Operating leases will result in straight-line rent expense (similar to current operating leases) while finance leases will result in interest and amortization expense (similar to current capital leases). Classification will be based on criteria that are largely similar to those applied in current lease accounting. The new standard may be adopted using a modified retrospective transition and provides for certain practical expedients. We are evaluating the impact of ASU 2016-02 on our consolidated financial statements, where we believe the primary impact as a lessee will relate to leases where we are deemed to be the accounting owner of leasehold improvements. The accounting for lessors will remain largely unchanged from current GAAP; however, the new lease standard requires that lessors expense, on an as-incurred basis, certain initial direct costs that are not incremental in negotiating a lease. Under existing standards, these costs are capitalizable and therefore the new lease standard will result in certain of these costs being expensed as incurred after adoption. During the nine months ended September 30, 2018 and 2017, we capitalized $1.1 million and $0.6 million , respectively, of internal costs related to our leasing activities. Further under current lessor accounting, a real estate lease could only be a sales-type lease if ownership of the real estate was transferred to the lessee. With the adoption of ASU 2016-02, there will no longer be an exclusion for real estate leases, where the same classification guidance applies to all leases. If, as lessor, our real estate leases would be classified as sales-type leases, the real estate asset would be eliminated, a net investment asset would be recognized generally equal to the present value of the minimum lease payments plus the unguaranteed residual value and a selling profit or loss recorded. We are currently evaluating how this guidance will apply to our leases, including sales-type, direct financing and operating classifications. In light of the recently issued lease standard amendment and the new practical expedients, we continue to evaluate the impact of the new leasing standard. We plan to adopt the new standard January 1, 2019. In January 2018, the FASB issued ASU 2018-01, which permits an entity to elect a practical expedient to not evaluate land easements that were not previously accounted for as leases prior to the entity’s adoption of the new lease accounting standard. Once the new lease standard is adopted, it should be applied prospectively to all new or modified land easements. The Company expects to adopt this new guidance effective January 1, 2019, along with the new lease standard, and will continue to evaluate the impact of this new guidance until it becomes effective. In June 2016, the FASB issued ASU 2016-13 providing guidance which requires certain financial assets to be presented at the net amount expected to be collected. The guidance affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The guidance will apply to our trade receivables, notes receivable, net investments in leases and any other future financial assets that have the contractual right to receive cash that we may acquire in the future. The guidance is effective for periods beginning for us January 1, 2020. Early adoption is permitted. We are currently evaluating the impact of the new standard. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | For the three and nine months ended September 30, 2018 , revenue disaggregated by primary revenue stream is as follows (in millions). Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Other revenues from customers Managed services $ 3.3 $ 9.7 Equipment sales 3.6 8.7 Other services 1.2 6.3 Total other revenues from customers 8.1 24.7 Colocation lease revenue 169.5 500.5 Metered power reimbursements 29.0 74.9 Revenue $ 206.6 $ 600.1 |
Investment in Real Estate (Tabl
Investment in Real Estate (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Real Estate [Abstract] | |
Schedule of Estimated Fair Value of Assets Acquired | The following table summarizes the estimated fair values of all assets acquired at the date of acquisition: IN MILLIONS Investment in real estate $ 420.3 Cash and cash equivalents 3.2 Intangible assets: Above/Below market leases 2.3 In-place leases 75.8 Other assets 2.4 Payables (5.4 ) Deferred revenue (0.9 ) Capital lease obligation (2.2 ) Net assets acquired attributable to CyrusOne Inc. 495.5 Cash acquired (3.2 ) Net cash paid at acquisition $ 492.3 The following table summarizes the estimated fair values of all assets acquired at the date of acquisition: IN MILLIONS Investment in real estate $ 595.4 Cash and cash equivalents 12.7 Rent and other receivables 9.0 Intangible assets: Trade name 1.8 Leasehold interest 1.6 In-place leases 60.9 Other assets 1.1 Accounts payable (24.2 ) Deferred revenue (3.3 ) Capital lease obligations (25.0 ) Deferred tax liability (69.2 ) Debt (86.3 ) Net assets acquired attributable to CyrusOne Inc. 474.5 Cash acquired (12.7 ) Net cash paid at acquisition $ 461.8 |
Schedule of Major Components of Real Estate Investments and Intangibles | As of September 30, 2018 and December 31, 2017 , major components of our real estate investments and intangibles and related accumulated depreciation and amortization are as follows (in millions): September 30, 2018 December 31, 2017 Investment in Real Estate Intangibles Investment in Real Estate Intangibles Buildings and Improvements Equipment Customer Relationships In Place Leases Other Contractual Buildings and Improvements Equipment Customer Relationships In Place Leases Other Contractual Cost $ 1,587.3 $ 2,452.5 $ 247.1 $ 136.7 $ 19.5 $ 1,371.4 $ 1,813.9 $ 247.1 $ 75.9 $ 16.1 Less: accumulated depreciation and amortization (461.4 ) (512.0 ) (134.2 ) (13.4 ) (7.3 ) (418.2 ) (364.2 ) (123.0 ) (7.1 ) (6.0 ) Net $ 1,125.9 $ 1,940.5 $ 112.9 $ 123.3 $ 12.2 $ 953.2 $ 1,449.7 $ 124.1 $ 68.8 $ 10.1 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | As of September 30, 2018 and December 31, 2017 , the components of other assets are as follows (in millions): September 30, 2018 December 31, 2017 Straight line receivables, net $ 120.1 $ 100.0 Deferred leasing and other contract costs 40.9 33.7 Prepaid expenses 26.3 20.0 Non-real estate assets, net 15.6 16.7 Other 19.2 10.5 Total $ 222.1 $ 180.9 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | As of September 30, 2018 and December 31, 2017 , the components of debt are as follows (unless otherwise noted, interest rate and maturity date information are as of September 30, 2018 ) (in millions): September 30, 2018 December 31, 2017 Interest Rate (a) Maturity Date $3.0 Billion Credit Facility: $1.7 Billion Revolving Credit Facility $ — $ — Monthly LIBOR + 1.45% March 2022 (b) 2023 Term Loan 1,000.0 — Monthly LIBOR + 1.40% March 2023 2025 Term Loan 300.0 — Monthly LIBOR + 1.70% March 2025 $2.0 Billion Credit Facility: $1.1 Billion Revolving Credit Facility — — Monthly LIBOR + 1.55% N/A 2021 Term Loan — 250.0 Monthly LIBOR + 1.50% N/A 2022 Term Loan — 650.0 Monthly LIBOR + 1.50% N/A 2024 Notes, including bond premium of $5.9 million 705.9 706.8 5.000 % March 2024 2027 Notes, including bond premium of $9.4 million 509.4 510.5 5.375 % March 2027 EUR construction facility 95.6 — EURIBOR + 3.25% June 2023 Deferred financing costs (34.7 ) (27.9 ) — — Total $ 2,576.2 $ 2,089.4 (a) - Monthly LIBOR at September 30, 2018 was 2.25% . (b) - The Company may exercise a one -year extension option, subject to certain conditions |
Capital Lease Obligations and_2
Capital Lease Obligations and Lease Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Leases [Abstract] | |
Schedule of Capital Lease Obligations and Lease Financing Arrangements | As of September 30, 2018 and December 31, 2017 , capital lease obligations and lease financing arrangements are as follows (in millions): September 30, 2018 December 31, 2017 Capital lease obligations $ 36.9 $ 10.1 Lease financing arrangements 125.8 131.9 Total $ 162.7 $ 142.0 |
Schedule of Future Minimum Principal Payments of the Capital Lease Obligations and Lease Financing Arrangements | The following table summarizes aggregate minimum principal payments of the capital lease obligations and lease financing arrangements for the five years subsequent to September 30, 2018 , and thereafter (in millions): Capital Leases Lease Financing Arrangements 2018 $ 0.8 $ 1.8 2019 3.1 7.7 2020 3.3 21.0 2021 3.5 5.7 2022 2.6 6.3 Thereafter 23.6 83.3 Total $ 36.9 $ 125.8 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Fair Value of Other Financial Instruments | The carrying value and fair value of other financial instruments are as follows (in millions): September 30, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value 2024 Notes $ 705.9 $ 714.0 $ 706.8 $ 728.0 2027 Notes 509.4 512.5 510.5 527.5 Equity investment 282.2 282.2 175.6 175.6 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Restricted Stock and Restricted Stock Units Activity | The following tables present the stock plan activity for the nine months ended September 30, 2018 and 2017 for restricted stock units, restricted stock and stock options (performance-based awards are reflected at the target amount of the grant): Restricted Stock Units ("RSU") 2018 2017 Units Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value Outstanding January 1, 265,002 $ 56.08 — $ — Granted 356,148 53.18 269,055 55.95 Exercised (88,371 ) 44.50 — — Forfeited (21,701 ) 53.56 (3,986 ) 53.84 Outstanding September 30, 511,078 $ 56.17 265,069 $ 56.07 Time-based RSUs outstanding 267,314 $ 52.45 135,923 $ 49.27 Performance-based RSUs outstanding 243,764 $ 60.25 129,146 $ 63.23 Restricted Stock ("RS") 2018 2017 Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Outstanding January 1, 715,098 $ 32.21 1,274,713 $ 28.95 Granted 17,052 51.31 18,179 48.13 Exercised (238,816 ) 27.47 (432,424 ) 26.35 Forfeited (55,708 ) 29.16 (131,171 ) 21.07 Outstanding September 30, 437,626 $ 35.93 729,297 $ 32.39 Time-based RSs outstanding 332,868 $ 38.25 422,180 $ 37.47 Performance-based RSs outstanding 104,758 $ 28.54 307,117 $ 25.40 |
Schedule of Stock Option Activity | Stock Options 2018 2017 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Outstanding January 1, 415,459 $ 31.67 434,268 $ 31.89 Granted — — — — Exercised (14,236 ) 23.58 (279 ) 48.82 Forfeited — — — — Outstanding September 30, 401,223 $ 31.96 433,989 $ 31.90 Time-based stock options outstanding 348,137 $ 33.23 366,667 $ 33.42 Performance-based stock options outstanding 53,086 $ 23.58 67,322 $ 23.58 |
Income (Loss) per Share (Tables
Income (Loss) per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income (Loss) per Share | The following table reflects the computation of basic and diluted net income (loss) per share for the three and nine months ended September 30, 2018 and 2017 : IN MILLIONS, except per share amounts Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Basic Diluted Basic Diluted Basic Diluted Basic Diluted Numerator: Net income (loss) $ (42.4 ) $ (42.4 ) $ (55.1 ) $ (55.1 ) $ 107.0 $ 107.0 $ (86.3 ) $ (86.3 ) Less: Restricted stock dividends (0.3 ) (0.3 ) (0.2 ) (0.2 ) (0.8 ) (0.8 ) (0.7 ) (0.7 ) Net income (loss) available to stockholders $ (42.7 ) $ (42.7 ) $ (55.3 ) $ (55.3 ) $ 106.2 $ 106.2 $ (87.0 ) $ (87.0 ) Denominator: Weighted average shares outstanding-basic 98.8 98.8 90.4 90.4 97.8 97.8 87.5 87.5 Performance-based restricted stock and units — — 0.6 — Weighted average shares outstanding-diluted 98.8 90.4 98.4 87.5 EPS: Net income (loss) per share-basic $ (0.43 ) $ (0.61 ) $ 1.09 $ (0.99 ) Effect of dilutive shares: Net income (loss) per share-diluted $ (0.43 ) $ (0.61 ) $ 1.08 $ (0.99 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | As of September 30, 2018 , future minimum lease payments required under operating leases having initial or remaining non-cancellable lease terms in excess of one year are as follows (in millions): 2018 $ 1.3 2019 4.8 2020 4.3 2021 3.1 2022 3.1 Thereafter 43.9 Total $ 60.5 |
Guarantors (Tables)
Guarantors (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Consolidating Balance Sheets | Condensed Consolidating Balance Sheets As of September 30, 2018 Parent General LP Finance Guarantor Subsidiaries Non- Eliminations/Consolidations Total Total investment in real estate, net $ — $ — $ — $ — $ 3,470.1 $ 620.0 $ 29.7 $ 4,119.8 Cash and cash equivalents — — — — 44.9 16.1 — 61.0 Investment in subsidiaries 2,236.5 22.4 3,042.4 — — — (5,301.3 ) — Rent and other receivables, net — — — — 96.3 8.2 — 104.5 Intercompany receivable 22.5 — 1,701.4 — 4.3 — (1,728.2 ) — Equity investment — — — — — 282.2 — 282.2 Goodwill — — — — 455.1 — — 455.1 Intangible assets, net — — — — 184.3 64.1 — 248.4 Other assets — — 0.5 — 207.3 14.3 — 222.1 Total assets $ 2,259.0 $ 22.4 $ 4,744.3 $ — $ 4,462.3 $ 1,004.9 $ (6,999.8 ) $ 5,493.1 Debt, net $ — $ — $ 2,480.6 $ — $ — $ 95.6 $ — $ 2,576.2 Intercompany payable — — 22.5 — 1,701.4 4.3 (1,728.2 ) — Capital lease obligations and lease financing arrangements — — — — 108.3 54.4 — 162.7 Accounts payable and accrued expenses — — 4.7 — 81.2 10.9 — 96.8 Construction costs payable — — — — 153.7 6.8 — 160.5 Dividends payable 49.7 — — — — — — 49.7 Deferred revenue and prepaid rents — — — — 136.4 3.1 — 139.5 Deferred tax liability — — — — — 68.7 — 68.7 Total liabilities 49.7 — 2,507.8 — 2,181.0 243.8 (1,728.2 ) 3,254.1 Total stockholders' equity 2,209.3 22.4 2,236.5 — 2,281.3 761.1 (5,271.6 ) 2,239.0 Total liabilities and equity $ 2,259.0 $ 22.4 $ 4,744.3 $ — $ 4,462.3 $ 1,004.9 $ (6,999.8 ) $ 5,493.1 As of December 31, 2017 Parent General LP Finance Guarantor Subsidiaries Non- Eliminations/Consolidations Total Total investment in real estate, net $ — $ — $ — $ — $ 3,014.9 $ 25.8 $ 17.7 $ 3,058.4 Cash and cash equivalents — — — — 151.2 0.7 — 151.9 Investment in subsidiaries 1,718.0 17.2 2,190.2 — — — (3,925.4 ) — Rent and other receivables, net — — — — 84.6 2.6 — 87.2 Intercompany receivable 20.0 — 1,656.4 — — — (1,676.4 ) — Equity investment — — — — — 175.6 — 175.6 Goodwill — — — — 455.1 — — 455.1 Intangible assets, net — — — — 203.0 — — 203.0 Other assets — — 0.5 — 177.7 2.7 — 180.9 Total assets $ 1,738.0 $ 17.2 $ 3,847.1 $ — $ 4,086.5 $ 207.4 $ (5,584.1 ) $ 4,312.1 Debt, net $ — $ — $ 2,089.4 $ — $ — $ — $ — $ 2,089.4 Intercompany payable — — 20.0 — 1,656.4 — (1,676.4 ) — Capital lease obligations and lease financing arrangements — — — — 110.0 32.0 — 142.0 Accounts payable and accrued expenses — — 19.7 — 77.3 0.9 — 97.9 Construction costs payable — — — — 115.5 — — 115.5 Dividends payable 41.8 — — — — — — 41.8 Deferred revenue and prepaid rents — — — — 110.8 0.8 — 111.6 Total liabilities 41.8 — 2,129.1 — 2,070.0 33.7 (1,676.4 ) 2,598.2 Total stockholders' equity 1,696.2 17.2 1,718.0 — 2,016.5 173.7 (3,907.7 ) 1,713.9 Total liabilities and equity $ 1,738.0 $ 17.2 $ 3,847.1 $ — $ 4,086.5 $ 207.4 $ (5,584.1 ) $ 4,312.1 |
Consolidating Statements of Operations and Comprehensive Income (Loss) | Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Three Months Ended September 30, 2018 Parent General LP Finance Guarantor Subsidiaries Non- Eliminations/ Consolidations Total Revenue $ — $ — $ — $ — $ 201.8 $ 4.8 $ — $ 206.6 Total operating expenses — — — — 180.2 6.2 — 186.4 Operating income — — — — 21.6 (1.4 ) — 20.2 Interest expense — — (29.2 ) — — (0.7 ) 4.1 (25.8 ) Unrealized loss on marketable equity investment — — — — — (36.6 ) — (36.6 ) Loss on early extinguishment of debt — — — — — — — — Net income (loss) before income taxes — — (29.2 ) — 21.6 (38.7 ) 4.1 (42.2 ) Income tax (benefit) expense — — — — (0.7 ) 0.5 — (0.2 ) Equity earnings (loss) related to investment in subsidiaries (48.3 ) (0.5 ) (19.1 ) — — — 67.9 — Net income (loss) (48.3 ) (0.5 ) (48.3 ) — 20.9 (38.2 ) 72.0 (42.4 ) Other comprehensive income (loss) — — — — — (1.8 ) — (1.8 ) Comprehensive income (loss) $ (48.3 ) $ (0.5 ) $ (48.3 ) $ — $ 20.9 $ (40.0 ) $ 72.0 $ (44.2 ) Three Months Ended September 30, 2017 Parent General LP Finance Guarantor Subsidiaries Non- Eliminations/Consolidations Total Revenue $ — $ — $ — $ — $ 173.9 $ 1.4 $ — $ 175.3 Total operating expenses — — — — 210.9 0.7 — 211.6 Operating income — — — — (37.0 ) 0.7 — (36.3 ) Interest expense — — (19.9 ) — — (0.7 ) 2.7 (17.9 ) Loss on early extinguishment of debt — — — — — — — — Net (loss) income before income taxes — — (19.9 ) — (37.0 ) — 2.7 (54.2 ) Income tax expense — — — — (0.9 ) — — (0.9 ) Equity (loss) earnings related to investment in subsidiaries (57.8 ) (0.5 ) (37.9 ) — — — 96.2 — Net (loss) income (57.8 ) (0.5 ) (57.8 ) — (37.9 ) — 98.9 (55.1 ) Other comprehensive income (loss) — — — — — (0.1 ) — (0.1 ) Comprehensive (loss) income $ (57.8 ) $ (0.5 ) $ (57.8 ) $ — $ (37.9 ) $ (0.1 ) $ 98.9 $ (55.2 ) Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Nine Months Ended September 30, 2018 Parent General LP Finance Guarantor Subsidiaries Non- Eliminations/ Consolidations Total Revenue $ — $ — $ — $ — $ 592.0 $ 8.1 $ — $ 600.1 Total operating expenses — — — — 516.8 8.4 — 525.2 Operating income — — — — 75.2 (0.3 ) — 74.9 Interest expense — — (79.3 ) — — (2.1 ) 12.0 (69.4 ) Unrealized gain on marketable equity investment — — — — — 106.6 — 106.6 Loss on early extinguishment of debt — — (3.1 ) — — — — (3.1 ) Net income (loss) before income taxes — — (82.4 ) — 75.2 104.2 12.0 109.0 Income tax expense — — — — (2.5 ) 0.5 — (2.0 ) Equity earnings (loss) related to investment in subsidiaries 93.3 0.9 175.7 — — — (269.9 ) — Net income (loss) 93.3 0.9 93.3 — 72.7 104.7 (257.9 ) 107.0 Other comprehensive income (loss) — — — — — (1.7 ) — (1.7 ) Comprehensive income (loss) $ 93.3 $ 0.9 $ 93.3 $ — $ 72.7 $ 103.0 $ (257.9 ) $ 105.3 Nine Months Ended September 30, 2017 Parent General LP Finance Guarantor Subsidiaries Non- Eliminations/Consolidations Total Revenue $ — $ — $ — $ — $ 487.5 $ 4.0 $ — $ 491.5 Total operating expenses — — — — 484.8 6.5 — 491.3 Operating income — — — — 2.7 (2.5 ) — 0.2 Interest expense — — (53.6 ) — — (2.0 ) 7.6 (48.0 ) Loss on early extinguishment of debt — — (36.5 ) — — — — (36.5 ) Net (loss) income before income taxes — — (90.1 ) — 2.7 (4.5 ) 7.6 (84.3 ) Income tax expense — — — — (2.0 ) — — (2.0 ) Equity (loss) earnings related to investment in subsidiaries (93.9 ) (0.9 ) (3.8 ) — (4.5 ) — 103.1 — Net (loss) income (93.9 ) (0.9 ) (93.9 ) — (3.8 ) (4.5 ) 110.7 (86.3 ) Other comprehensive income (loss) — — — — — — — — Comprehensive income (loss) $ (93.9 ) $ (0.9 ) $ (93.9 ) $ — $ (3.8 ) $ (4.5 ) $ 110.7 $ (86.3 ) |
Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows Nine Months Ended September 30, 2018 Parent Guarantor General Partner LP Co-issuer Finance Co-issuer Guarantor Subsidiaries Non- Guarantors Eliminations/Consolidations Total Net cash (used in) provided by operating activities $ — $ — $ (89.2 ) $ — $ 284.9 $ (4.8 ) $ 12.0 $ 202.9 Cash flows from investing activities: Asset acquisitions, primarily real estate, net of cash acquired — — — — — (461.8 ) — (461.8 ) Investment in real estate — — — — (608.5 ) (10.7 ) (12.0 ) (631.2 ) Investment in subsidiaries (551.9 ) (5.5 ) (663.2 ) — — — 1,220.6 — Return of investment 132.3 — — — — — (132.3 ) — Intercompany borrowings 5.1 — (44.8 ) — — — 39.7 — Net cash (used in) provided by investing activities (414.5 ) (5.5 ) (708.0 ) — (608.5 ) (472.5 ) 1,116.0 (1,093.0 ) Cash flows from financing activities: Issuance of common stock, net 551.9 — — — — — — 551.9 Dividends paid (132.3 ) — (132.3 ) — — — 132.3 (132.3 ) Intercompany borrowings — — (5.1 ) — 44.8 — (39.7 ) — Proceeds from debt, net — — 1,655.4 — — 9.7 — 1,665.1 Payments on debt — — (1,272.7 ) — — — — (1,272.7 ) Payments on capital lease obligations and lease financing arrangements — — — — (6.5 ) (1.3 ) — (7.8 ) Tax payment upon exercise of equity awards (5.1 ) — — — — — — (5.1 ) Contributions/distributions from parent — 5.5 551.9 — 179.0 484.2 (1,220.6 ) — Net cash provided by (used in) financing activities 414.5 5.5 797.2 — 217.3 492.6 (1,128.0 ) 799.1 Effect of exchange rate changes on cash, cash equivalents and restricted cash — — — — — 0.1 — 0.1 Net increase (decrease) in cash, cash equivalents and restricted cash — — — — (106.3 ) 15.4 — (90.9 ) Cash, cash equivalents and restricted cash at beginning of period — — — — 151.2 0.7 — 151.9 Cash, cash equivalents and restricted cash at end of period $ — $ — $ — $ — $ 44.9 $ 16.1 $ — $ 61.0 Nine Months Ended September 30, 2017 Parent General LP Finance Guarantor Subsidiaries Non- Eliminations/Consolidations Total Net cash (used in) provided by operating activities $ — $ — $ (51.6 ) $ — $ 234.5 $ (0.4 ) $ 7.6 $ 190.1 Cash flows from investing activities: Asset acquisitions, primarily real estate, net of cash acquired — — — — (492.3 ) — — (492.3 ) Investment in real estate — — — — (701.5 ) — (7.6 ) (709.1 ) Investment in subsidiaries (408.2 ) (4.1 ) (408.2 ) — (0.1 ) — 820.6 — Return of investment 107.4 — — — — — (107.4 ) — Intercompany borrowings 6.0 — (568.9 ) — — — 562.9 — Net cash (used in) provided by investing activities (294.8 ) (4.1 ) (977.1 ) — (1,193.9 ) — 1,268.5 (1,201.4 ) Cash flows from financing activities: Issuance of common stock, net 408.8 — — — — — — 408.8 Dividends paid (107.4 ) — (107.4 ) — — — 107.4 (107.4 ) Intercompany borrowings — — (6.0 ) — 568.9 — (562.9 ) — Proceeds from debt, net — — 1,946.0 — — — — 1,946.0 Payments on debt — — (1,212.1 ) — — — — (1,212.1 ) Payments on capital lease obligations and lease financing arrangements — — — — (6.5 ) (0.8 ) — (7.3 ) Tax payment upon exercise of equity awards (6.6 ) — — — — — — (6.6 ) Contributions/distributions from parent — 4.1 408.2 — 408.2 0.1 (820.6 ) — Net cash provided by (used in) financing activities 294.8 4.1 1,028.7 — 970.6 (0.7 ) (1,276.1 ) 1,021.4 Net increase (decrease) in cash, cash equivalents and restricted cash — — — — 11.2 (1.1 ) — 10.1 Cash, cash equivalents and restricted cash at beginning of period — — — — 13.4 1.2 — 14.6 Cash, cash equivalents and restricted cash at end of period $ — $ — $ — $ — $ 24.6 $ 0.1 $ — $ 24.7 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information for the nine months ended September 30, 2018 and 2017 is summarized below (in millions): Nine months ended September 30, 2018 2017 Supplemental disclosure of cash flow information: Cash paid for interest, net of amounts capitalized of $15.9 million and $12.4 million in 2018 and 2017, respectively $ 98.5 $ 58.2 Cash paid for income taxes 3.3 1.9 Non-cash investing and financing activities: Construction costs and other payables 160.5 133.6 Dividends payable 49.7 39.6 Debt assumed 86.3 — Capital lease obligation assumed 25.0 2.2 Real estate additions from entering into and modifying capital leases 4.6 — Transfer of land held for future development to construction in progress 13.5 12.6 Transfer of construction in progress to gross operating real estate 554.7 733.9 |
Description of Business - Narra
Description of Business - Narrative (Details) | 9 Months Ended |
Sep. 30, 2018recovery_centerdata_center | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of data operating centers | data_center | 47 |
Number of recovery centers | recovery_center | 2 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)segment | Sep. 30, 2017USD ($) | Jan. 01, 2018USD ($) | Dec. 31, 2017USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Impairment losses | $ 0 | $ 54,400,000 | $ 0 | $ 58,000,000 | ||
Deferred tax liability | 68,700,000 | $ 68,700,000 | $ 0 | |||
Number of segments | segment | 1 | |||||
Revenue | 206,600,000 | 175,300,000 | $ 600,100,000 | 491,500,000 | ||
Investment in real estate, net | 4,119,800,000 | 4,119,800,000 | 3,058,400,000 | |||
Construction in progress, including land under development | 738,600,000 | 738,600,000 | 487,100,000 | |||
Land held for future development | 189,600,000 | 189,600,000 | 63,800,000 | |||
Land | (125,200,000) | (125,200,000) | (104,600,000) | |||
Other assets | 222,100,000 | 222,100,000 | 180,900,000 | |||
Rent and other receivables, net | (104,500,000) | (104,500,000) | (87,200,000) | |||
Construction costs payable | 160,500,000 | 160,500,000 | 115,500,000 | |||
Dividends payable | 49,700,000 | 49,700,000 | 41,800,000 | |||
Capital lease obligations and lease financing arrangements | 162,700,000 | 162,700,000 | 142,000,000 | |||
Lease financing arrangements | (125,800,000) | (125,800,000) | (131,900,000) | |||
Equity investment | 282,200,000 | 282,200,000 | 175,600,000 | |||
Accounts payable and accrued expenses | (23,400,000) | 3,500,000 | ||||
Interest expense amortization, net | (3,000,000) | (3,400,000) | ||||
Accumulated deficit | (444,300,000) | (444,300,000) | (486,900,000) | |||
Unrealized gain (loss) on marketable equity investment | $ (36,600,000) | $ 0 | 106,600,000 | 0 | ||
Capitalized internal costs | $ 1,100,000 | $ 600,000 | ||||
Minimum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Management service contracts, term | 1 year | |||||
Maximum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Management service contracts, term | 5 years | |||||
Buildings | Minimum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Useful life | 9 years | |||||
Buildings | Maximum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Useful life | 30 years | |||||
Building Improvements | Minimum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Useful life | 3 years | |||||
Building Improvements | Maximum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Useful life | 30 years | |||||
Equipment | Minimum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Useful life | 2 years | |||||
Equipment | Maximum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Useful life | 20 years | |||||
Customer Concentration Risk | Microsoft Corporation | Revenue | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Concentration risk, percentage | 19.00% | 18.00% | ||||
ASU 2014-09 | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Adoption of accounting standards | 300,000 | |||||
ASU 2016-01 | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Adoption of accounting standards | 0 | |||||
Adjustments | ASU 2014-09 | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Accumulated deficit | $ 300,000 | |||||
Restatement | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Construction in progress, including land under development | 8,700,000 | |||||
Land held for future development | 63,800,000 | |||||
Land | 72,500,000 | |||||
Other assets | 3,300,000 | |||||
Rent and other receivables, net | 3,300,000 | |||||
Construction costs payable | 115,500,000 | |||||
Dividends payable | 41,800,000 | |||||
Capital lease obligations and lease financing arrangements | 131,900,000 | |||||
Lease financing arrangements | 131,900,000 | |||||
Equity investment | 175,600,000 | |||||
Accounts payable and accrued expenses | $ 1,300,000 | |||||
Interest expense amortization, net | 1,300,000 | |||||
Debt issuance costs | 13,600,000 | |||||
Payment of debt extinguishment costs | $ 30,400,000 | |||||
Accounts payable and accrued expenses | Restatement | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Construction costs payable | (115,500,000) | |||||
Dividends payable | (41,800,000) | |||||
Other assets | Restatement | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Equity investment | (175,600,000) | |||||
Retained Earnings | ASU 2014-09 | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Adoption of accounting standards | 300,000 | |||||
Retained Earnings | ASU 2016-01 | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Adoption of accounting standards | $ 75,600,000 | $ 75,600,000 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accumulated deficit | $ (444.3) | $ (486.9) | |
Revenue recognition, cumulative modified retrospective | Adjustments | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accumulated deficit | $ 0.3 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 206.6 | $ 175.3 | $ 600.1 | $ 491.5 |
Total other revenues from customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 8.1 | 24.7 | ||
Managed services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3.3 | 9.7 | ||
Equipment sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3.6 | 8.7 | ||
Other services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1.2 | 6.3 | ||
Colocation lease revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 169.5 | 500.5 | ||
Metered power reimbursements | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 29 | $ 19.8 | $ 74.9 | $ 50.7 |
Investment in Real Estate - Nar
Investment in Real Estate - Narrative (Details) ft² in Thousands | Aug. 24, 2018USD ($)data_center | Feb. 28, 2017USD ($)ft²data_centerMW | Sep. 30, 2018USD ($)a | Sep. 30, 2017USD ($)a | Sep. 30, 2018USD ($)a | Sep. 30, 2017USD ($)a | Mar. 31, 2018USD ($) | Mar. 29, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | |||||||||
Area of land acquired (in acres) | a | 99 | 66 | 167 | 209 | |||||
Payment to acquire land | $ 139,900,000 | $ 13,000,000 | $ 159,600,000 | $ 35,300,000 | |||||
Land under development | 28,800,000 | 28,800,000 | $ 8,700,000 | ||||||
Depreciation expense | 74,900,000 | 60,100,000 | 210,000,000 | 164,300,000 | |||||
Amortization expense | 9,100,000 | $ 8,600,000 | 26,200,000 | $ 23,800,000 | |||||
Zenium Data Centers | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of data center facilities acquired | data_center | 4 | ||||||||
Consideration for acquisition | $ 461,800,000 | ||||||||
Germany ING Facility | 86,300,000 | ||||||||
Post-closing working capital adjustments | 1,000,000 | ||||||||
Cash and cash equivalents | 12,700,000 | ||||||||
Deferred tax liability | $ 69,200,000 | ||||||||
Sentinel Properties | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of data center facilities acquired | data_center | 2 | ||||||||
Consideration for acquisition | $ 492,300,000 | ||||||||
Cash and cash equivalents | $ 3,200,000 | ||||||||
Data center | Sentinel Properties | |||||||||
Business Acquisition [Line Items] | |||||||||
Area acquired (in sqft or acre) | ft² | 160 | ||||||||
Amount of power capacity acquired (in megawatts) | MW | 21 | ||||||||
Term Loan | |||||||||
Business Acquisition [Line Items] | |||||||||
Credit Facility | $ 174,500,000 | ||||||||
Term Loan | 2023 Term Loan | |||||||||
Business Acquisition [Line Items] | |||||||||
Delayed draw feature | 300,000,000 | ||||||||
Credit Facility | 1,000,000,000 | 1,000,000,000 | $ 700,000,000 | 0 | |||||
Credit agreement amount | 1,000,000,000 | ||||||||
Revolving Credit Facility | $1.7 Billion Revolving Credit Facility | |||||||||
Business Acquisition [Line Items] | |||||||||
Credit Facility | 0 | 0 | $ 0 | ||||||
Credit agreement amount | $ 1,700,000,000 | $ 1,700,000,000 | $ 1,700,000,000 |
Investment in Real Estate - Est
Investment in Real Estate - Estimated Fair Value of Assets Acquired (Details) - USD ($) $ in Millions | Aug. 24, 2018 | Feb. 28, 2017 |
Zenium Data Centers | ||
Business Acquisition [Line Items] | ||
Investment in real estate | $ 595.4 | |
Cash and cash equivalents | 12.7 | |
Rent and other receivables | 9 | |
Other assets | 1.1 | |
Accounts payable | (24.2) | |
Deferred revenue | (3.3) | |
Capital lease obligation | (25) | |
Deferred tax liability | (69.2) | |
Debt | (86.3) | |
Net assets acquired attributable to CyrusOne Inc. | 474.5 | |
Cash acquired | (12.7) | |
Net cash paid at acquisition | 461.8 | |
Sentinel Properties | ||
Business Acquisition [Line Items] | ||
Investment in real estate | $ 420.3 | |
Cash and cash equivalents | 3.2 | |
Other assets | 2.4 | |
Accounts payable | (5.4) | |
Deferred revenue | (0.9) | |
Capital lease obligation | (2.2) | |
Net assets acquired attributable to CyrusOne Inc. | 495.5 | |
Cash acquired | (3.2) | |
Net cash paid at acquisition | 492.3 | |
Trade name | Zenium Data Centers | ||
Business Acquisition [Line Items] | ||
Intangible assets | 1.8 | |
Leasehold interest | Zenium Data Centers | ||
Business Acquisition [Line Items] | ||
Intangible assets | 1.6 | |
Above/Below market leases | Sentinel Properties | ||
Business Acquisition [Line Items] | ||
Intangible assets | 2.3 | |
In Place Leases | Zenium Data Centers | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 60.9 | |
In Place Leases | Sentinel Properties | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 75.8 |
Investment in Real Estate - Rea
Investment in Real Estate - Real Estate Investments and Intangibles and Related Depreciation and Amortization (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Investment in Real Estate | ||
Buildings and improvements, cost | $ 1,587.3 | $ 1,371.4 |
Equipment, cost | 2,452.5 | 1,813.9 |
Buildings and improvements, accumulated depreciation | (461.4) | (418.2) |
Equipment, accumulated depreciation | (512) | (364.2) |
Buildings and improvements, net | 1,125.9 | 953.2 |
Equipment, net | 1,940.5 | 1,449.7 |
Intangibles | ||
Less: accumulated depreciation and amortization | (154.9) | (136.1) |
Customer Relationships | ||
Intangibles | ||
Cost | 247.1 | 247.1 |
Less: accumulated depreciation and amortization | (134.2) | (123) |
Net | 112.9 | 124.1 |
In Place Leases | ||
Intangibles | ||
Cost | 136.7 | 75.9 |
Less: accumulated depreciation and amortization | (13.4) | (7.1) |
Net | 123.3 | 68.8 |
Other Contractual | ||
Intangibles | ||
Cost | 19.5 | 16.1 |
Less: accumulated depreciation and amortization | (7.3) | (6) |
Net | $ 12.2 | $ 10.1 |
Equity Investment (Details)
Equity Investment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||||
Unrealized gain (loss) on marketable equity investment | $ (36.6) | $ 0 | $ 106.6 | $ 0 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Straight line receivables, net | $ 120.1 | $ 100 |
Deferred leasing and other contract costs | 40.9 | 33.7 |
Prepaid expenses | 26.3 | 20 |
Non-real estate assets, net | 15.6 | 16.7 |
Other | 19.2 | 10.5 |
Total | $ 222.1 | $ 180.9 |
Debt - Components of Debt (Deta
Debt - Components of Debt (Details) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Aug. 31, 2018EUR (€) | Mar. 31, 2018USD ($) | Mar. 29, 2018USD ($) | |
Debt Instrument [Line Items] | |||||
Deferred financing costs | $ (34,700,000) | $ (27,900,000) | |||
Total | $ 2,576,200,000 | 2,089,400,000 | |||
Monthly LIBOR | 2.25% | ||||
$3 Billion Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit agreement amount | $ 3,000,000,000 | ||||
$2.0 Billion Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit agreement amount | 2,000,000,000 | ||||
EUR construction facility | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 95,600,000 | $ 0 | |||
Debt principal amount | € | € 100,000,000 | ||||
EURIBOR | EUR construction facility | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 3.25% | ||||
Term Loan | |||||
Debt Instrument [Line Items] | |||||
Credit Facility | 174,500,000 | ||||
Term Loan | 2023 Term Loan | |||||
Debt Instrument [Line Items] | |||||
Credit agreement amount | 1,000,000,000 | ||||
Credit Facility | 1,000,000,000 | $ 0 | $ 700,000,000 | ||
Term Loan | 2025 Term Loan | |||||
Debt Instrument [Line Items] | |||||
Credit agreement amount | 300,000,000 | ||||
Credit Facility | 300,000,000 | 0 | |||
Term Loan | 2021 Term Loan | |||||
Debt Instrument [Line Items] | |||||
Credit Facility | 0 | 250,000,000 | |||
Term Loan | 2022 Term Loan | |||||
Debt Instrument [Line Items] | |||||
Credit Facility | $ 0 | $ 650,000,000 | |||
Term Loan | LIBOR | 2023 Term Loan | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.40% | ||||
Term Loan | LIBOR | 2025 Term Loan | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.70% | ||||
Term Loan | LIBOR | 2021 Term Loan | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.50% | ||||
Term Loan | LIBOR | 2022 Term Loan | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.50% | ||||
Senior Notes | 2024 Notes, including bond premium of $5.9 million | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 705,900,000 | $ 706,800,000 | |||
Stated interest rate | 5.00% | ||||
Bond premium | $ 5,900,000 | ||||
Senior Notes | 2027 Notes, including bond premium of $9.4 million | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 509,400,000 | 510,500,000 | |||
Stated interest rate | 5.375% | ||||
Bond premium | $ 9,400,000 | ||||
Revolving Credit Facility | $3 Billion Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit agreement amount | 3,000,000,000 | 3,000,000,000 | |||
Revolving Credit Facility | $1.7 Billion Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit agreement amount | 1,700,000,000 | $ 1,700,000,000 | |||
Credit Facility | $ 0 | 0 | |||
Term of extension option | 1 year | ||||
Revolving Credit Facility | $2.0 Billion Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit Facility | 900,000,000 | ||||
Revolving Credit Facility | $1.1 Billion Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit agreement amount | 1,100,000,000 | ||||
Credit Facility | $ 0 | $ 0 | |||
Revolving Credit Facility | LIBOR | $1.7 Billion Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.45% | ||||
Revolving Credit Facility | LIBOR | $1.1 Billion Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.55% |
Debt - Narrative (Details)
Debt - Narrative (Details) | Mar. 29, 2018USD ($)tranche | Nov. 03, 2017USD ($) | Mar. 17, 2017USD ($) | Aug. 31, 2018EUR (€)exercise_option | Mar. 31, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2018USD ($) | Feb. 28, 2017USD ($) | Nov. 20, 2012USD ($) |
Line of Credit Facility [Line Items] | |||||||||||||
Loss on early extinguishment of debt | $ 0 | $ 0 | $ 3,100,000 | $ 36,500,000 | |||||||||
Letters of credit outstanding | 7,800,000 | 7,800,000 | |||||||||||
Long-term debt | 2,576,200,000 | 2,576,200,000 | $ 2,089,400,000 | ||||||||||
Term Loan | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Line of credit | $ 174,500,000 | ||||||||||||
EUR construction facility | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Term | 6 years | ||||||||||||
Debt principal amount | € | € 100,000,000 | ||||||||||||
Number of times accordion feature can be exercised | exercise_option | 3 | ||||||||||||
$3 Billion Credit Facility | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Credit agreement amount | 3,000,000,000 | ||||||||||||
Available capacity under accordion feature | 4,000,000,000 | ||||||||||||
$3 Billion Credit Facility | Revolving Credit Facility | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Credit agreement amount | 3,000,000,000 | 3,000,000,000 | 3,000,000,000 | ||||||||||
Borrowings used to retire previous debt | 1,000,000,000 | ||||||||||||
Available capacity | 1,700,000,000 | 1,700,000,000 | |||||||||||
$1.7 Billion Revolving Credit Facility | Revolving Credit Facility | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Credit agreement amount | $ 1,700,000,000 | 1,700,000,000 | 1,700,000,000 | ||||||||||
Option to extend maturity | 1 year | ||||||||||||
Multicurrency borrowing sublimit | $ 750,000,000 | ||||||||||||
Line of credit | 0 | $ 0 | 0 | ||||||||||
Commitment fee percent | 0.25% | ||||||||||||
Commitment fee rate per annum upon 50% or greater utilization | 0.15% | ||||||||||||
Commitment fee amount | 1,000,000 | $ 600,000 | $ 2,800,000 | $ 1,300,000 | |||||||||
2023 Term Loan | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Term | 5 years | ||||||||||||
2023 Term Loan | Term Loan | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Credit agreement amount | $ 1,000,000,000 | ||||||||||||
Line of credit | 1,000,000,000 | 1,000,000,000 | 0 | $ 700,000,000 | |||||||||
Delayed draw feature | $ 300,000,000 | ||||||||||||
Delay draw feature, number of tranches | tranche | 3 | ||||||||||||
Delayed draw feature, period | 6 months | ||||||||||||
2025 Term Loan | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Term | 7 years | ||||||||||||
2025 Term Loan | Term Loan | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Credit agreement amount | $ 300,000,000 | ||||||||||||
Line of credit | 300,000,000 | 300,000,000 | 0 | ||||||||||
$2.0 Billion Credit Facility | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Credit agreement amount | 2,000,000,000 | ||||||||||||
$2.0 Billion Credit Facility | Revolving Credit Facility | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Line of credit | 900,000,000 | ||||||||||||
Loss on early extinguishment of debt | 3,100,000 | ||||||||||||
$1.1 Billion Revolving Credit Facility | Revolving Credit Facility | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Credit agreement amount | 1,100,000,000 | ||||||||||||
Line of credit | 0 | 0 | $ 0 | ||||||||||
2021 Term Loan | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Term | 5 years | ||||||||||||
2021 Term Loan | Term Loan | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Line of credit | 0 | 0 | $ 250,000,000 | ||||||||||
2022 Term Loan | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Term | 7 years | ||||||||||||
2022 Term Loan | Term Loan | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Line of credit | $ 0 | $ 0 | $ 650,000,000 | ||||||||||
2024 Notes | Senior Notes | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Stated interest rate | 5.00% | 5.00% | |||||||||||
2024 Notes | Senior Notes | Cyrus One LP And Cyrus One Finance Corp | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Debt principal amount | $ 200,000,000 | $ 500,000,000 | |||||||||||
Stated interest rate | 5.00% | 5.00% | |||||||||||
2027 Notes | Senior Notes | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Stated interest rate | 5.375% | 5.375% | |||||||||||
2027 Notes | Senior Notes | Cyrus One LP And Cyrus One Finance Corp | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Debt principal amount | $ 200,000,000 | $ 300,000,000 | |||||||||||
Stated interest rate | 5.375% | 5.375% | |||||||||||
5.000% senior notes due 2024 and 5.375% senior notes due 2027 | Senior Notes | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Debt proceeds, net of underwriting costs | $ 416,100,000 | $ 791,200,000 | |||||||||||
Debt financing and underwriting costs | $ 4,400,000 | ||||||||||||
6.375% senior notes due 2022 | Senior Notes | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Debt principal amount | $ 474,800,000 | ||||||||||||
Long-term debt | $ 469,000,000 | ||||||||||||
Repurchased amount | $ 515,100,000 | ||||||||||||
Repurchased amount, accrued and unpaid interest | 10,300,000 | ||||||||||||
Loss on extinguishment of debt | $ 36,200,000 | ||||||||||||
6.375% senior notes due 2022 | Senior Notes | Cyrus One LP And Cyrus One Finance Corp | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Debt principal amount | $ 525,000,000 | ||||||||||||
Stated interest rate | 6.375% | ||||||||||||
Minimum | EUR construction facility | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Accordion feature amount | € | € 5,000,000 | ||||||||||||
Maximum | EUR construction facility | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Accordion feature amount | € | € 31,500,000 |
Capital Lease Obligations and_3
Capital Lease Obligations and Lease Financing Arrangements - Summary of Capital Lease Obligations and Lease Financing Arrangements (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Leases [Abstract] | ||
Capital lease obligations | $ 36.9 | $ 10.1 |
Lease financing arrangements | 125.8 | 131.9 |
Total | $ 162.7 | $ 142 |
Capital Lease Obligations and_4
Capital Lease Obligations and Lease Financing Arrangements - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)data_center | Sep. 30, 2017USD ($) | |
Leases [Abstract] | ||||
Number of data center facilities under capital leases | data_center | 5 | |||
Interest expense on capital lease obligations | $ | $ 2.2 | $ 2.2 | $ 6.7 | $ 6.7 |
Capital Lease Obligations and_5
Capital Lease Obligations and Lease Financing Arrangements - Lease Financing Arrangements (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
Total | $ 162.7 | $ 142 |
Capital Leases | ||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2,018 | 0.8 | |
2,019 | 3.1 | |
2,020 | 3.3 | |
2,021 | 3.5 | |
2,022 | 2.6 | |
Thereafter | 23.6 | |
Total | 36.9 | |
Lease Financing Arrangements | ||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2,018 | 1.8 | |
2,019 | 7.7 | |
2,020 | 21 | |
2,021 | 5.7 | |
2,022 | 6.3 | |
Thereafter | 83.3 | |
Total | $ 125.8 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Carrying Value and Fair Value of Other Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, net | $ 2,576.2 | $ 2,089.4 |
Equity investment | 282.2 | 175.6 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity investment | 282.2 | 175.6 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity investment | 282.2 | |
Senior Notes | 2024 Notes | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, net | 705.9 | 706.8 |
Senior Notes | 2027 Notes | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, net | 509.4 | 510.5 |
Level 1 | Senior Notes | 2024 Notes | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, net | 714 | 728 |
Level 1 | Senior Notes | 2027 Notes | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, net | 512.5 | 527.5 |
Level 2 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity investment | $ 282.2 | $ 175.6 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Issuance of common stock (in shares) | 9,700,000 | 8,000,000 | ||||
Stock issued during period, average price per share (in dollars per share) | $ 58.67 | $ 52.47 | $ 58.67 | $ 52.47 | ||
Common stock outstanding (in shares) | 105,834,067 | 105,834,067 | 96,137,874 | |||
Dividends paid per share (in dollars per share) | $ 1.38 | 1.26 | ||||
Dividends declared per share (in dollars per share) | $ 0.46 | $ 0.42 | $ 1.38 | $ 1.26 | ||
Stock-based compensation expense | $ 4.6 | $ 4 | $ 13 | $ 11.6 | ||
LTIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized (in shares) | 8,900,000 | 8,900,000 | ||||
Shares available for grant (in shares) | 5,000,000 | 5,000,000 | ||||
Award vesting period | 3 years | |||||
Scenario, Forecast | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Dividends declared per share (in dollars per share) | $ 0.46 |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock Unit Activity (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Restricted Stock Units | ||
Units | ||
Outstanding, beginning balance (in shares) | 265,002 | 0 |
Granted (in shares) | 356,148 | 269,055 |
Exercised (in shares) | (88,371) | 0 |
Forfeited (in shares) | (21,701) | (3,986) |
Outstanding, ending balance (in shares) | 511,078 | 265,069 |
Weighted Average Grant Date Fair Value | ||
Outstanding, beginning balance (in dollars per share) | $ 56.08 | $ 0 |
Granted (in dollars per share) | 53.18 | 55.95 |
Exercised (in dollars per share) | 44.50 | 0 |
Forfeited (in dollars per share) | 53.56 | 53.84 |
Outstanding, ending balance (in dollars per share) | $ 56.17 | $ 56.07 |
Restricted Stock Units, Time-Based | ||
Units | ||
Outstanding, ending balance (in shares) | 267,314 | 135,923 |
Weighted Average Grant Date Fair Value | ||
Outstanding, ending balance (in dollars per share) | $ 52.45 | $ 49.27 |
Restricted Stock Units, Performance-Based | ||
Units | ||
Outstanding, ending balance (in shares) | 243,764 | 129,146 |
Weighted Average Grant Date Fair Value | ||
Outstanding, ending balance (in dollars per share) | $ 60.25 | $ 63.23 |
Stockholders' Equity - Restri_2
Stockholders' Equity - Restricted Stock Activity (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Restricted Stock | ||
Shares | ||
Outstanding, beginning balance (in shares) | 715,098 | 1,274,713 |
Granted (in shares) | 17,052 | 18,179 |
Exercised (in shares) | (238,816) | (432,424) |
Forfeited (in shares) | (55,708) | (131,171) |
Outstanding, ending balance (in shares) | 437,626 | 729,297 |
Weighted Average Grant Date Fair Value | ||
Outstanding, beginning balance (in dollars per share) | $ 32.21 | $ 28.95 |
Granted (in dollars per share) | 51.31 | 48.13 |
Exercised (in dollars per share) | 27.47 | 26.35 |
Forfeited (in dollars per share) | 29.16 | 21.07 |
Outstanding, ending balance (in dollars per share) | $ 35.93 | $ 32.39 |
Restricted Stock, Time-Based | ||
Shares | ||
Outstanding, ending balance (in shares) | 332,868 | 422,180 |
Weighted Average Grant Date Fair Value | ||
Outstanding, ending balance (in dollars per share) | $ 38.25 | $ 37.47 |
Restricted Stock, Performance-Based | ||
Shares | ||
Outstanding, ending balance (in shares) | 104,758 | 307,117 |
Weighted Average Grant Date Fair Value | ||
Outstanding, ending balance (in dollars per share) | $ 28.54 | $ 25.40 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Option Activity (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Options | ||
Outstanding, beginning balance (in shares) | 415,459 | 434,268 |
Granted (in shares) | 0 | 0 |
Exercised (in shares) | (14,236) | (279) |
Forfeited (in shares) | 0 | 0 |
Outstanding, ending balance (in shares) | 401,223 | 433,989 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Outstanding (in dollars per share) | $ 31.67 | $ 31.89 |
Granted (in dollars per share) | 0 | 0 |
Exercised (in dollars per share) | 23.58 | 48.82 |
Forfeited (in dollars per share) | 0 | 0 |
Outstanding (in dollars per share) | $ 31.96 | $ 31.90 |
Stock Options, Time Based | ||
Options | ||
Outstanding, ending balance (in shares) | 348,137 | 366,667 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Outstanding (in dollars per share) | $ 33.23 | $ 33.42 |
Stock Options, Performance Based | ||
Options | ||
Outstanding, ending balance (in shares) | 53,086 | 67,322 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Outstanding (in dollars per share) | $ 23.58 | $ 23.58 |
Income (Loss) per Share - Narra
Income (Loss) per Share - Narrative (Details) - USD ($) shares in Millions, $ in Millions | Sep. 28, 2018 | Sep. 30, 2018 | Sep. 30, 2017 |
Subsidiary, Sale of Stock [Line Items] | |||
Issuance of common stock (in shares) | 9.7 | 8 | |
Proceeds from public stock offerings | $ 551.9 | $ 408.8 | |
Public stock offering | |||
Subsidiary, Sale of Stock [Line Items] | |||
Issuance of common stock (in shares) | 6.7 | ||
Proceeds from public stock offerings | $ 398.2 | ||
Stock issuance costs | $ 17.2 | ||
Stock issued upon underwriters exercising option to purchase additional shares | |||
Subsidiary, Sale of Stock [Line Items] | |||
Issuance of common stock (in shares) | 2.5 |
Income (Loss) per Share - Compu
Income (Loss) per Share - Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Numerator: | ||||
Net income (loss) | $ (42.4) | $ (55.1) | $ 107 | $ (86.3) |
Less: Restricted stock dividends, Basic | (0.3) | (0.2) | (0.8) | (0.7) |
Less: Restricted stock dividends, Diluted | (0.3) | (0.2) | (0.8) | (0.7) |
Net (loss) income available to stockholders, Basic | (42.7) | (55.3) | 106.2 | (87) |
Net (loss) income available to stockholders, Diluted | $ (42.7) | $ (55.3) | $ 106.2 | $ (87) |
Denominator: | ||||
Weighted average shares outstanding - basic (in shares) | 98.8 | 90.4 | 97.8 | 87.5 |
Performance-based restricted stock and units (in shares) | 0 | 0 | 0.6 | 0 |
Weighted average shares outstanding- diluted (in shares) | 98.8 | 90.4 | 98.4 | 87.5 |
EPS: | ||||
Net income (loss) per share - basic (in dollars per share) | $ (0.43) | $ (0.61) | $ 1.09 | $ (0.99) |
Effect of dilutive shares: | ||||
Net income (loss) per share - diluted (in dollars per share) | $ (0.43) | $ (0.61) | $ 1.08 | $ (0.99) |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
GDS | Investee | ||
Related Party Transaction [Line Items] | ||
Commission and referral charges and accrued expensed payable to GDS | $ 0.4 | $ 0.9 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||||
Income tax expense | $ 200,000 | $ 900,000 | $ 2,000,000 | $ 2,000,000 | |
Deferred tax liability | $ 68,700,000 | $ 68,700,000 | $ 0 | ||
Maximum | |||||
Income Taxes [Line Items] | |||||
Percentage of taxable income to qualify as REIT | 100.00% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Rent expense | $ 0.9 | $ 2.1 | $ 5 | $ 6.1 |
Letters of credit outstanding | $ 7.8 | 7.8 | ||
Data center facilities and equipment | ||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||
Amount of minimum purchase commitment | $ 293.2 | |||
Data center facilities and equipment | Minimum | ||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||
Term of purchase commitment | 1 year | |||
Data center facilities and equipment | Maximum | ||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||
Term of purchase commitment | 2 years | |||
Services | ||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||
Amount of minimum purchase commitment | $ 53 | |||
Services | Minimum | ||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||
Term of purchase commitment | 1 year | |||
Services | Maximum | ||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||
Term of purchase commitment | 2 years |
Commitments and Contingencies_2
Commitments and Contingencies - Operating Leases (Details) $ in Millions | Sep. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 1.3 |
2,019 | 4.8 |
2,020 | 4.3 |
2,021 | 3.1 |
2,022 | 3.1 |
Thereafter | 43.9 |
Total | $ 60.5 |
Guarantors - Narrative (Details
Guarantors - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Condensed Financial Information Disclosure [Abstract] | |||||
Minimum unencumbered asset value percentage of unsecured debt | 150.00% | ||||
Gross operating real estate included in guarantor subsidiaries | 85.00% | ||||
Equity investment | $ 282.2 | $ 282.2 | $ 175.6 | ||
Unrealized gain (loss) on marketable equity investment | $ (36.6) | $ 0 | $ 106.6 | $ 0 |
Guarantors - Condensed Consolid
Guarantors - Condensed Consolidating Balance Sheets (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Condensed Consolidating Balance Sheets | ||||
Total investment in real estate, net | $ 4,119,800,000 | $ 3,058,400,000 | ||
Cash and cash equivalents | 61,000,000 | 151,900,000 | ||
Investment in subsidiaries | 0 | 0 | ||
Rent and other receivables, net | 104,500,000 | 87,200,000 | ||
Intercompany receivable | 0 | 0 | ||
Equity investment | 282,200,000 | 175,600,000 | ||
Goodwill | 455,100,000 | 455,100,000 | ||
Intangible assets, net | 248,400,000 | 203,000,000 | ||
Other assets | 222,100,000 | 180,900,000 | ||
Total assets | 5,493,100,000 | 4,312,100,000 | ||
Debt, net | 2,576,200,000 | 2,089,400,000 | ||
Intercompany payable | 0 | 0 | ||
Capital lease obligations and lease financing arrangements | 162,700,000 | 142,000,000 | ||
Accounts payable and accrued expenses | 96,800,000 | 97,900,000 | ||
Construction costs payable | 160,500,000 | 115,500,000 | ||
Dividends payable | 49,700,000 | 41,800,000 | ||
Deferred revenue and prepaid rents | 139,500,000 | 111,600,000 | ||
Deferred tax liability | 68,700,000 | 0 | ||
Total liabilities | 3,254,100,000 | 2,598,200,000 | ||
Total stockholders' equity | 2,239,000,000 | 1,713,900,000 | $ 1,376,400,000 | $ 1,162,000,000 |
Total liabilities and equity | 5,493,100,000 | 4,312,100,000 | ||
Eliminations/Consolidations | ||||
Condensed Consolidating Balance Sheets | ||||
Total investment in real estate, net | 29,700,000 | 17,700,000 | ||
Cash and cash equivalents | 0 | 0 | ||
Investment in subsidiaries | (5,301,300,000) | (3,925,400,000) | ||
Rent and other receivables, net | 0 | 0 | ||
Intercompany receivable | (1,728,200,000) | (1,676,400,000) | ||
Equity investment | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets | (6,999,800,000) | (5,584,100,000) | ||
Debt, net | 0 | 0 | ||
Intercompany payable | (1,728,200,000) | (1,676,400,000) | ||
Capital lease obligations and lease financing arrangements | 0 | 0 | ||
Accounts payable and accrued expenses | 0 | 0 | ||
Construction costs payable | 0 | 0 | ||
Dividends payable | 0 | 0 | ||
Deferred revenue and prepaid rents | 0 | 0 | ||
Deferred tax liability | 0 | |||
Total liabilities | (1,728,200,000) | (1,676,400,000) | ||
Total stockholders' equity | (5,271,600,000) | (3,907,700,000) | ||
Total liabilities and equity | (6,999,800,000) | (5,584,100,000) | ||
General Partner | ||||
Condensed Consolidating Balance Sheets | ||||
Total investment in real estate, net | 0 | 0 | ||
Cash and cash equivalents | 0 | 0 | ||
Investment in subsidiaries | 22,400,000 | 17,200,000 | ||
Rent and other receivables, net | 0 | 0 | ||
Intercompany receivable | 0 | 0 | ||
Equity investment | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets | 22,400,000 | 17,200,000 | ||
Debt, net | 0 | 0 | ||
Intercompany payable | 0 | 0 | ||
Capital lease obligations and lease financing arrangements | 0 | 0 | ||
Accounts payable and accrued expenses | 0 | 0 | ||
Construction costs payable | 0 | 0 | ||
Dividends payable | 0 | 0 | ||
Deferred revenue and prepaid rents | 0 | 0 | ||
Deferred tax liability | 0 | |||
Total liabilities | 0 | 0 | ||
Total stockholders' equity | 22,400,000 | 17,200,000 | ||
Total liabilities and equity | 22,400,000 | 17,200,000 | ||
Parent Guarantor | ||||
Condensed Consolidating Balance Sheets | ||||
Total investment in real estate, net | 0 | 0 | ||
Cash and cash equivalents | 0 | 0 | ||
Investment in subsidiaries | 2,236,500,000 | 1,718,000,000 | ||
Rent and other receivables, net | 0 | 0 | ||
Intercompany receivable | 22,500,000 | 20,000,000 | ||
Equity investment | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets | 2,259,000,000 | 1,738,000,000 | ||
Debt, net | 0 | 0 | ||
Intercompany payable | 0 | 0 | ||
Capital lease obligations and lease financing arrangements | 0 | 0 | ||
Accounts payable and accrued expenses | 0 | 0 | ||
Construction costs payable | 0 | 0 | ||
Dividends payable | 49,700,000 | 41,800,000 | ||
Deferred revenue and prepaid rents | 0 | 0 | ||
Deferred tax liability | 0 | |||
Total liabilities | 49,700,000 | 41,800,000 | ||
Total stockholders' equity | 2,209,300,000 | 1,696,200,000 | ||
Total liabilities and equity | 2,259,000,000 | 1,738,000,000 | ||
LP Co-issuer | ||||
Condensed Consolidating Balance Sheets | ||||
Total investment in real estate, net | 0 | 0 | ||
Cash and cash equivalents | 0 | 0 | ||
Investment in subsidiaries | 3,042,400,000 | 2,190,200,000 | ||
Rent and other receivables, net | 0 | 0 | ||
Intercompany receivable | 1,701,400,000 | 1,656,400,000 | ||
Equity investment | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Other assets | 500,000 | 500,000 | ||
Total assets | 4,744,300,000 | 3,847,100,000 | ||
Debt, net | 2,480,600,000 | 2,089,400,000 | ||
Intercompany payable | 22,500,000 | 20,000,000 | ||
Capital lease obligations and lease financing arrangements | 0 | 0 | ||
Accounts payable and accrued expenses | 4,700,000 | 19,700,000 | ||
Construction costs payable | 0 | 0 | ||
Dividends payable | 0 | 0 | ||
Deferred revenue and prepaid rents | 0 | 0 | ||
Deferred tax liability | 0 | |||
Total liabilities | 2,507,800,000 | 2,129,100,000 | ||
Total stockholders' equity | 2,236,500,000 | 1,718,000,000 | ||
Total liabilities and equity | 4,744,300,000 | 3,847,100,000 | ||
Finance Co-issuer | ||||
Condensed Consolidating Balance Sheets | ||||
Total investment in real estate, net | 0 | 0 | ||
Cash and cash equivalents | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Rent and other receivables, net | 0 | 0 | ||
Intercompany receivable | 0 | 0 | ||
Equity investment | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets | 0 | 0 | ||
Debt, net | 0 | 0 | ||
Intercompany payable | 0 | 0 | ||
Capital lease obligations and lease financing arrangements | 0 | 0 | ||
Accounts payable and accrued expenses | 0 | 0 | ||
Construction costs payable | 0 | 0 | ||
Dividends payable | 0 | 0 | ||
Deferred revenue and prepaid rents | 0 | 0 | ||
Deferred tax liability | 0 | |||
Total liabilities | 0 | 0 | ||
Total stockholders' equity | 0 | 0 | ||
Total liabilities and equity | 0 | 0 | ||
Guarantor Subsidiaries | ||||
Condensed Consolidating Balance Sheets | ||||
Total investment in real estate, net | 3,470,100,000 | 3,014,900,000 | ||
Cash and cash equivalents | 44,900,000 | 151,200,000 | ||
Investment in subsidiaries | 0 | 0 | ||
Rent and other receivables, net | 96,300,000 | 84,600,000 | ||
Intercompany receivable | 4,300,000 | 0 | ||
Equity investment | 0 | 0 | ||
Goodwill | 455,100,000 | 455,100,000 | ||
Intangible assets, net | 184,300,000 | 203,000,000 | ||
Other assets | 207,300,000 | 177,700,000 | ||
Total assets | 4,462,300,000 | 4,086,500,000 | ||
Debt, net | 0 | 0 | ||
Intercompany payable | 1,701,400,000 | 1,656,400,000 | ||
Capital lease obligations and lease financing arrangements | 108,300,000 | 110,000,000 | ||
Accounts payable and accrued expenses | 81,200,000 | 77,300,000 | ||
Construction costs payable | 153,700,000 | 115,500,000 | ||
Dividends payable | 0 | 0 | ||
Deferred revenue and prepaid rents | 136,400,000 | 110,800,000 | ||
Deferred tax liability | 0 | |||
Total liabilities | 2,181,000,000 | 2,070,000,000 | ||
Total stockholders' equity | 2,281,300,000 | 2,016,500,000 | ||
Total liabilities and equity | 4,462,300,000 | 4,086,500,000 | ||
Non- Guarantors | ||||
Condensed Consolidating Balance Sheets | ||||
Total investment in real estate, net | 620,000,000 | 25,800,000 | ||
Cash and cash equivalents | 16,100,000 | 700,000 | ||
Investment in subsidiaries | 0 | 0 | ||
Rent and other receivables, net | 8,200,000 | 2,600,000 | ||
Intercompany receivable | 0 | 0 | ||
Equity investment | 282,200,000 | 175,600,000 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 64,100,000 | 0 | ||
Other assets | 14,300,000 | 2,700,000 | ||
Total assets | 1,004,900,000 | 207,400,000 | ||
Debt, net | 95,600,000 | 0 | ||
Intercompany payable | 4,300,000 | 0 | ||
Capital lease obligations and lease financing arrangements | 54,400,000 | 32,000,000 | ||
Accounts payable and accrued expenses | 10,900,000 | 900,000 | ||
Construction costs payable | 6,800,000 | 0 | ||
Dividends payable | 0 | 0 | ||
Deferred revenue and prepaid rents | 3,100,000 | 800,000 | ||
Deferred tax liability | 68,700,000 | |||
Total liabilities | 243,800,000 | 33,700,000 | ||
Total stockholders' equity | 761,100,000 | 173,700,000 | ||
Total liabilities and equity | $ 1,004,900,000 | $ 207,400,000 |
Guarantors - Condensed Consol_2
Guarantors - Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Condensed Consolidating Statements of Operations | ||||
Revenue | $ 206.6 | $ 175.3 | $ 600.1 | $ 491.5 |
Total operating expenses | 186.4 | 211.6 | 525.2 | 491.3 |
Operating income | 20.2 | (36.3) | 74.9 | 0.2 |
Interest expense | (25.8) | (17.9) | (69.4) | (48) |
Unrealized gain (loss) on marketable equity investment | (36.6) | 0 | 106.6 | 0 |
Loss on early extinguishment of debt | 0 | 0 | (3.1) | (36.5) |
Net income (loss) before income taxes | (42.2) | (54.2) | 109 | (84.3) |
Income tax expense | (0.2) | (0.9) | (2) | (2) |
Equity earnings (loss) related to investment in subsidiaries | 0 | 0 | 0 | 0 |
Net income (loss) | (42.4) | (55.1) | 107 | (86.3) |
Other comprehensive income (loss) | (1.8) | (0.1) | (1.7) | 0 |
Comprehensive income (loss) | (44.2) | (55.2) | 105.3 | (86.3) |
Eliminations/Consolidations | ||||
Condensed Consolidating Statements of Operations | ||||
Revenue | 0 | 0 | 0 | 0 |
Total operating expenses | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Interest expense | 4.1 | 2.7 | 12 | 7.6 |
Unrealized gain (loss) on marketable equity investment | 0 | 0 | ||
Loss on early extinguishment of debt | 0 | 0 | 0 | 0 |
Net income (loss) before income taxes | 4.1 | 2.7 | 12 | 7.6 |
Income tax expense | 0 | 0 | 0 | 0 |
Equity earnings (loss) related to investment in subsidiaries | 67.9 | 96.2 | (269.9) | 103.1 |
Net income (loss) | 72 | 98.9 | (257.9) | 110.7 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | 72 | 98.9 | (257.9) | 110.7 |
General Partner | ||||
Condensed Consolidating Statements of Operations | ||||
Revenue | 0 | 0 | 0 | 0 |
Total operating expenses | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Unrealized gain (loss) on marketable equity investment | 0 | 0 | ||
Loss on early extinguishment of debt | 0 | 0 | 0 | 0 |
Net income (loss) before income taxes | 0 | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 | 0 |
Equity earnings (loss) related to investment in subsidiaries | (0.5) | (0.5) | 0.9 | (0.9) |
Net income (loss) | (0.5) | (0.5) | 0.9 | (0.9) |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | (0.5) | (0.5) | 0.9 | (0.9) |
Parent Guarantor | ||||
Condensed Consolidating Statements of Operations | ||||
Revenue | 0 | 0 | 0 | 0 |
Total operating expenses | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Unrealized gain (loss) on marketable equity investment | 0 | 0 | ||
Loss on early extinguishment of debt | 0 | 0 | 0 | 0 |
Net income (loss) before income taxes | 0 | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 | 0 |
Equity earnings (loss) related to investment in subsidiaries | (48.3) | (57.8) | 93.3 | (93.9) |
Net income (loss) | (48.3) | (57.8) | 93.3 | (93.9) |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | (48.3) | (57.8) | 93.3 | (93.9) |
LP Co-issuer | ||||
Condensed Consolidating Statements of Operations | ||||
Revenue | 0 | 0 | 0 | 0 |
Total operating expenses | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Interest expense | (29.2) | (19.9) | (79.3) | (53.6) |
Unrealized gain (loss) on marketable equity investment | 0 | 0 | ||
Loss on early extinguishment of debt | 0 | 0 | (3.1) | (36.5) |
Net income (loss) before income taxes | (29.2) | (19.9) | (82.4) | (90.1) |
Income tax expense | 0 | 0 | 0 | 0 |
Equity earnings (loss) related to investment in subsidiaries | (19.1) | (37.9) | 175.7 | (3.8) |
Net income (loss) | (48.3) | (57.8) | 93.3 | (93.9) |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | (48.3) | (57.8) | 93.3 | (93.9) |
Finance Co-issuer | ||||
Condensed Consolidating Statements of Operations | ||||
Revenue | 0 | 0 | 0 | 0 |
Total operating expenses | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Unrealized gain (loss) on marketable equity investment | 0 | 0 | ||
Loss on early extinguishment of debt | 0 | 0 | 0 | 0 |
Net income (loss) before income taxes | 0 | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 | 0 |
Equity earnings (loss) related to investment in subsidiaries | 0 | 0 | 0 | 0 |
Net income (loss) | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | 0 | 0 | 0 | 0 |
Guarantor Subsidiaries | ||||
Condensed Consolidating Statements of Operations | ||||
Revenue | 201.8 | 173.9 | 592 | 487.5 |
Total operating expenses | 180.2 | 210.9 | 516.8 | 484.8 |
Operating income | 21.6 | (37) | 75.2 | 2.7 |
Interest expense | 0 | 0 | 0 | 0 |
Unrealized gain (loss) on marketable equity investment | 0 | 0 | ||
Loss on early extinguishment of debt | 0 | 0 | 0 | 0 |
Net income (loss) before income taxes | 21.6 | (37) | 75.2 | 2.7 |
Income tax expense | (0.7) | (0.9) | (2.5) | (2) |
Equity earnings (loss) related to investment in subsidiaries | 0 | 0 | 0 | (4.5) |
Net income (loss) | 20.9 | (37.9) | 72.7 | (3.8) |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | 20.9 | (37.9) | 72.7 | (3.8) |
Non- Guarantors | ||||
Condensed Consolidating Statements of Operations | ||||
Revenue | 4.8 | 1.4 | 8.1 | 4 |
Total operating expenses | 6.2 | 0.7 | 8.4 | 6.5 |
Operating income | (1.4) | 0.7 | (0.3) | (2.5) |
Interest expense | (0.7) | (0.7) | (2.1) | (2) |
Unrealized gain (loss) on marketable equity investment | (36.6) | 106.6 | ||
Loss on early extinguishment of debt | 0 | 0 | 0 | 0 |
Net income (loss) before income taxes | (38.7) | 0 | 104.2 | (4.5) |
Income tax expense | 0.5 | 0 | 0.5 | 0 |
Equity earnings (loss) related to investment in subsidiaries | 0 | 0 | 0 | 0 |
Net income (loss) | (38.2) | 0 | 104.7 | (4.5) |
Other comprehensive income (loss) | (1.8) | (0.1) | (1.7) | 0 |
Comprehensive income (loss) | $ (40) | $ (0.1) | $ 103 | $ (4.5) |
Guarantors - Condensed Consol_3
Guarantors - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Condensed Consolidating Statements of Cash Flows | ||
Net cash (used in) provided by operating activities | $ 202.9 | $ 190.1 |
Cash flows from investing activities: | ||
Asset acquisitions, primarily real estate, net of cash acquired | (461.8) | (492.3) |
Investment in real estate | (631.2) | (709.1) |
Investment in subsidiaries | 0 | 0 |
Return of investment | 0 | 0 |
Intercompany borrowings | 0 | 0 |
Net cash used in investing activities | (1,093) | (1,201.4) |
Cash flows from financing activities: | ||
Issuance of common stock, net | 551.9 | 408.8 |
Dividends paid | (132.3) | (107.4) |
Intercompany borrowings | 0 | 0 |
Proceeds from debt, net | 1,665.1 | 1,946 |
Payments on debt | (1,272.7) | (1,212.1) |
Payments on capital lease obligations and lease financing arrangements | (7.8) | (7.3) |
Tax payment upon exercise of equity awards | (5.1) | (6.6) |
Contributions/distributions from parent | 0 | 0 |
Net cash provided by (used in) financing activities | 799.1 | 1,021.4 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0.1 | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (90.9) | 10.1 |
Cash, cash equivalents and restricted cash at beginning of period | 151.9 | 14.6 |
Cash, cash equivalents and restricted cash at end of period | 61 | 24.7 |
General Partner | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash (used in) provided by operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Asset acquisitions, primarily real estate, net of cash acquired | 0 | 0 |
Investment in real estate | 0 | 0 |
Investment in subsidiaries | (5.5) | (4.1) |
Return of investment | 0 | 0 |
Intercompany borrowings | 0 | 0 |
Net cash used in investing activities | (5.5) | (4.1) |
Cash flows from financing activities: | ||
Issuance of common stock, net | 0 | 0 |
Dividends paid | 0 | 0 |
Intercompany borrowings | 0 | 0 |
Proceeds from debt, net | 0 | 0 |
Payments on debt | 0 | 0 |
Payments on capital lease obligations and lease financing arrangements | 0 | 0 |
Tax payment upon exercise of equity awards | 0 | 0 |
Contributions/distributions from parent | 5.5 | 4.1 |
Net cash provided by (used in) financing activities | 5.5 | 4.1 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 |
Cash, cash equivalents and restricted cash at end of period | 0 | 0 |
Eliminations/Consolidations | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash (used in) provided by operating activities | 12 | 7.6 |
Cash flows from investing activities: | ||
Asset acquisitions, primarily real estate, net of cash acquired | 0 | 0 |
Investment in real estate | (12) | (7.6) |
Investment in subsidiaries | 1,220.6 | 820.6 |
Return of investment | (132.3) | (107.4) |
Intercompany borrowings | 39.7 | 562.9 |
Net cash used in investing activities | 1,116 | 1,268.5 |
Cash flows from financing activities: | ||
Issuance of common stock, net | 0 | 0 |
Dividends paid | 132.3 | 107.4 |
Intercompany borrowings | (39.7) | (562.9) |
Proceeds from debt, net | 0 | 0 |
Payments on debt | 0 | 0 |
Payments on capital lease obligations and lease financing arrangements | 0 | 0 |
Tax payment upon exercise of equity awards | 0 | 0 |
Contributions/distributions from parent | (1,220.6) | (820.6) |
Net cash provided by (used in) financing activities | (1,128) | (1,276.1) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 |
Cash, cash equivalents and restricted cash at end of period | 0 | 0 |
Parent Guarantor | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash (used in) provided by operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Asset acquisitions, primarily real estate, net of cash acquired | 0 | 0 |
Investment in real estate | 0 | 0 |
Investment in subsidiaries | (551.9) | (408.2) |
Return of investment | 132.3 | 107.4 |
Intercompany borrowings | 5.1 | 6 |
Net cash used in investing activities | (414.5) | (294.8) |
Cash flows from financing activities: | ||
Issuance of common stock, net | 551.9 | 408.8 |
Dividends paid | (132.3) | (107.4) |
Intercompany borrowings | 0 | 0 |
Proceeds from debt, net | 0 | 0 |
Payments on debt | 0 | 0 |
Payments on capital lease obligations and lease financing arrangements | 0 | 0 |
Tax payment upon exercise of equity awards | (5.1) | (6.6) |
Contributions/distributions from parent | 0 | 0 |
Net cash provided by (used in) financing activities | 414.5 | 294.8 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 |
Cash, cash equivalents and restricted cash at end of period | 0 | 0 |
LP Co-issuer | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash (used in) provided by operating activities | (89.2) | (51.6) |
Cash flows from investing activities: | ||
Asset acquisitions, primarily real estate, net of cash acquired | 0 | 0 |
Investment in real estate | 0 | 0 |
Investment in subsidiaries | (663.2) | (408.2) |
Return of investment | 0 | 0 |
Intercompany borrowings | (44.8) | (568.9) |
Net cash used in investing activities | (708) | (977.1) |
Cash flows from financing activities: | ||
Issuance of common stock, net | 0 | 0 |
Dividends paid | (132.3) | (107.4) |
Intercompany borrowings | (5.1) | (6) |
Proceeds from debt, net | 1,655.4 | 1,946 |
Payments on debt | (1,272.7) | (1,212.1) |
Payments on capital lease obligations and lease financing arrangements | 0 | 0 |
Tax payment upon exercise of equity awards | 0 | 0 |
Contributions/distributions from parent | 551.9 | 408.2 |
Net cash provided by (used in) financing activities | 797.2 | 1,028.7 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 |
Cash, cash equivalents and restricted cash at end of period | 0 | 0 |
Finance Co-issuer | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash (used in) provided by operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Asset acquisitions, primarily real estate, net of cash acquired | 0 | 0 |
Investment in real estate | 0 | 0 |
Investment in subsidiaries | 0 | 0 |
Return of investment | 0 | 0 |
Intercompany borrowings | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Issuance of common stock, net | 0 | 0 |
Dividends paid | 0 | 0 |
Intercompany borrowings | 0 | 0 |
Proceeds from debt, net | 0 | 0 |
Payments on debt | 0 | 0 |
Payments on capital lease obligations and lease financing arrangements | 0 | 0 |
Tax payment upon exercise of equity awards | 0 | 0 |
Contributions/distributions from parent | 0 | 0 |
Net cash provided by (used in) financing activities | 0 | 0 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 |
Cash, cash equivalents and restricted cash at end of period | 0 | 0 |
Guarantor Subsidiaries | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash (used in) provided by operating activities | 284.9 | 234.5 |
Cash flows from investing activities: | ||
Asset acquisitions, primarily real estate, net of cash acquired | 0 | (492.3) |
Investment in real estate | (608.5) | (701.5) |
Investment in subsidiaries | 0 | (0.1) |
Return of investment | 0 | 0 |
Intercompany borrowings | 0 | 0 |
Net cash used in investing activities | (608.5) | (1,193.9) |
Cash flows from financing activities: | ||
Issuance of common stock, net | 0 | 0 |
Dividends paid | 0 | 0 |
Intercompany borrowings | 44.8 | 568.9 |
Proceeds from debt, net | 0 | 0 |
Payments on debt | 0 | 0 |
Payments on capital lease obligations and lease financing arrangements | (6.5) | (6.5) |
Tax payment upon exercise of equity awards | 0 | 0 |
Contributions/distributions from parent | 179 | 408.2 |
Net cash provided by (used in) financing activities | 217.3 | 970.6 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | (106.3) | 11.2 |
Cash, cash equivalents and restricted cash at beginning of period | 151.2 | 13.4 |
Cash, cash equivalents and restricted cash at end of period | 44.9 | 24.6 |
Non- Guarantors | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash (used in) provided by operating activities | (4.8) | (0.4) |
Cash flows from investing activities: | ||
Asset acquisitions, primarily real estate, net of cash acquired | (461.8) | 0 |
Investment in real estate | (10.7) | 0 |
Investment in subsidiaries | 0 | 0 |
Return of investment | 0 | 0 |
Intercompany borrowings | 0 | 0 |
Net cash used in investing activities | (472.5) | 0 |
Cash flows from financing activities: | ||
Issuance of common stock, net | 0 | 0 |
Dividends paid | 0 | 0 |
Intercompany borrowings | 0 | 0 |
Proceeds from debt, net | 9.7 | 0 |
Payments on debt | 0 | 0 |
Payments on capital lease obligations and lease financing arrangements | (1.3) | (0.8) |
Tax payment upon exercise of equity awards | 0 | 0 |
Contributions/distributions from parent | 484.2 | 0.1 |
Net cash provided by (used in) financing activities | 492.6 | (0.7) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0.1 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 15.4 | (1.1) |
Cash, cash equivalents and restricted cash at beginning of period | 0.7 | 1.2 |
Cash, cash equivalents and restricted cash at end of period | $ 16.1 | $ 0.1 |
Supplemental Disclosures of C_3
Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, net of amounts capitalized of $15.9 million and $12.4 million in 2018 and 2017, respectively | $ 98.5 | $ 58.2 |
Capitalized interest | 15.9 | 12.4 |
Cash paid for income taxes | 3.3 | 1.9 |
Non-cash investing and financing activities: | ||
Construction costs and other payables | 160.5 | 133.6 |
Dividends payable | 49.7 | 39.6 |
Debt assumed | 86.3 | 0 |
Capital lease obligation assumed | 25 | 2.2 |
Real estate additions from entering into and modifying capital leases | 4.6 | 0 |
Transfer of land held for future development to construction in progress | 13.5 | 12.6 |
Transfer of construction in progress to gross operating real estate | $ 554.7 | $ 733.9 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Oct. 08, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Subsequent Event [Line Items] | |||
Equity investment | $ 282.2 | $ 175.6 | |
ODATA | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Equity investment | $ 12 | ||
Equity interest | 10.00% |