Switch (SWCH) 10-Q 11 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	Apr. 30, 2020
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
Entity File Number	001-38231
Entity Registrant Name	Switch, Inc.
Entity Address, Address Line One	7135 S. Decatur Boulevard
Entity Tax Identification Number	82-1883953
Entity Incorporation, State or Country Code	NV
Entity Address, City or Town	Las Vegas,
Entity Address, State or Province	NV
Entity Address, Postal Zip Code	89118
Title of 12(b) Security	Class A common stock, par value $0.001
Trading Symbol	SWCH
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Shell Company	false
City Area Code	(702)
Local Phone Number	444-4111
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Document Transition Report	false
Entity Central Index Key	0001710583
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		103,149,364
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		138,467,056
Class C Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		0

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
CURRENT ASSETS:
Cash and cash equivalents	$ 64,711	$ 24,721
Accounts receivable, net of allowance for credit losses of $384 and $309, respectively	15,371	23,365
Prepaid expenses	6,683	7,137
Other current assets, net of allowance for credit losses of $6 and $0, respectively	4,436	3,817
Total current assets	91,201	59,040
Property and equipment, net	1,583,491	1,551,117
Long-term deposit	3,163	3,429
Deferred income taxes	131,255	114,372
Other assets, net of allowance for credit losses of $73 and $0, respectively	45,429	45,785
TOTAL ASSETS	1,854,539	1,773,743
CURRENT LIABILITIES:
Long-term debt, current portion	6,000	6,000
Accounts payable	16,400	19,477
Accrued salaries and benefits	6,853	5,828
Accrued expenses	11,371	11,254
Accrued construction payables	28,476	37,269
Deferred revenue, current portion	15,826	14,991
Customer deposits	11,128	10,830
Interest rate swap liability, current portion	8,297	3,464
Operating lease liability, current portion	4,549	4,805
Finance lease liability, current portion	12	12
Total current liabilities	108,912	113,930
Long-term debt, net	814,074	745,372
Operating lease liability	25,117	26,142
Finance lease liability	57,588	57,614
Deferred revenue	24,756	27,852
Liabilities under tax receivable agreement	181,274	162,076
Other long-term liabilities	24,981	13,112
TOTAL LIABILITIES	1,236,702	1,146,098
Commitments and contingencies (Note 4)
STOCKHOLDER’S EQUITY
Preferred stock	0	0
Additional paid in capital	217,124	204,711
(Accumulated deficit) retained earnings	(1,754)	2,420
Accumulated other comprehensive income	79	79
Total Switch, Inc. stockholders’ equity	215,690	207,451
Noncontrolling interest	402,147	420,194
TOTAL STOCKHOLDERS’ EQUITY	617,837	627,645
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 1,854,539	$ 1,773,743
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Shares issued (in shares)	0	0
Shares outstanding (in shares)	0	0
Class A Common Stock
STOCKHOLDER’S EQUITY
Common stock	$ 95	$ 90
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	750,000,000	750,000,000
Common Stock, Shares, Issued	95,035,000	89,768,000
Common stock, shares outstanding (in shares)	95,035,000	89,768,000
Class B Common Stock
STOCKHOLDER’S EQUITY
Common stock	$ 146	$ 151
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	300,000,000	300,000,000
Common Stock, Shares, Issued	146,410,000	151,047,000
Common stock, shares outstanding (in shares)	146,410,000	151,047,000
Class C Common Stock
STOCKHOLDER’S EQUITY
Common stock	$ 0	$ 0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	75,000,000	75,000,000
Common Stock, Shares, Issued	0	0
Common stock, shares outstanding (in shares)	0	0

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Contract with Customer, Asset, Accumulated Allowance for Credit Loss, Current	$ 6	$ 0
Contract with Customer, Asset, Accumulated Allowance for Credit Loss, Noncurrent	$ 73	$ 0
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Shares issued (in shares)	0	0
Shares outstanding (in shares)	0	0
Accounts Receivable, Allowance for Credit Loss	$ 384	$ 309
Amortization of debt issuance costs	$ 409
Class A Common Stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	750,000,000	750,000,000
Common Stock, Shares, Issued	95,035,000	89,768,000
Common stock, shares outstanding (in shares)	95,035,000	89,768,000
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	300,000,000	300,000,000
Common Stock, Shares, Issued	146,410,000	151,047,000
Common stock, shares outstanding (in shares)	146,410,000	151,047,000
Class C Common Stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	75,000,000	75,000,000
Common Stock, Shares, Issued	0	0
Common stock, shares outstanding (in shares)	0	0

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Revenue	$ 128,096	$ 107,442
Cost of revenue	67,029	57,525
Gross profit	61,067	49,917
Selling, general and administrative expense	40,116	34,251
Income from operations	20,951	15,666
Other income (expense):
Interest expense, including $409 and $409, respectively, in amortization of debt issuance costs	7,435	7,131
Loss on interest rate swaps	(17,555)	(4,985)
Other	277	502
Total other expense	(24,713)	(11,614)
(Loss) income before income taxes	(3,762)	4,052
Income tax benefit (expense)	273	(206)
Net (loss) income	(3,489)	3,846
Less: net (loss) income attributable to noncontrolling interest	(2,273)	3,113
Net (loss) income attributable to Switch, Inc.	$ (1,216)	$ 733
Net (loss) income per share (Note 8):
Basic (in dollars per share)	$ (0.01)	$ 0.01
Diluted (in dollars per share)	$ (0.01)	$ 0.01
Weighted average shares used in computing net (loss) income per share (Note 8):
Basic (in shares)	94,366	55,536
Diluted (in shares)	94,366	247,364
Other comprehensive (loss) income:
Foreign currency translation adjustment, net of tax of $0	$ 0	$ 0
Comprehensive (loss) income	(3,489)	3,846
Less: comprehensive (loss) income attributable to noncontrolling interest	(2,273)	3,113
Comprehensive (loss) income attributable to Switch, Inc.	$ (1,216)	$ 733

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Amortization of debt issuance costs	$ 409	$ 409
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax	$ 0	$ 0

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Class A Common Stock	Common StockClass A Common Stock	Common StockClass B Common Stock	Common StockClass C Common Stock	Additional Paid in Capital	Retained Earnings	Accumulated Other Comprehensive Income	Noncontrolling Interest
Balance (in shares) at Dec. 31, 2018			55,218	148,481	42,945
Balance at Dec. 31, 2018	$ 708,352		$ 55	$ 149	$ 43	$ 140,191	$ 2,693	$ 79	$ 565,142
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	3,846						733		3,113
Equity-based compensation expense	8,145					4,160			3,985
Issuance of Class A common stock upon settlement of restricted stock units, net of shares withheld for tax (shares)			463
Issuance of Class A common stock upon settlement of restricted stock units, net of shares withheld for tax	(1,310)		$ 1			(2,016)			705
Dividends declared	(1,728)						(1,728)
Distributions to noncontrolling interest	(6,006)								(6,006)
Foreign currency translation adjustment	0
Net deferred tax asset resulting from changes in outside basis difference on investment in Switch, Ltd.	(728)					(728)
Balance (in shares) at Mar. 31, 2019			55,681	148,481	42,945
Balance at Mar. 31, 2019	$ 711,735		$ 56	$ 149	$ 43	141,607	1,922	79	567,879
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared (in dollars per share)	$ 0.0294
Cumulative adjustment due to adoption of new credit loss standard	$ 1,164						224		940
Balance (in shares) at Dec. 31, 2019			89,768	151,047
Balance at Dec. 31, 2019	627,645		$ 90	$ 151		204,711	2,420	79	420,194
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(3,489)						(1,216)		(2,273)
Equity-based compensation expense	7,524					4,973			2,551
Issuance of Class A common stock upon settlement of restricted stock units, net of shares withheld for tax (shares)		4,600	630
Issuance of Class A common stock upon settlement of restricted stock units, net of shares withheld for tax	(3,911)					(3,375)			(536)
Dividends declared	(2,891)						(2,891)
Distributions to noncontrolling interest	(4,304)								(4,304)
Foreign currency translation adjustment	0
Exchanges of noncontrolling interest for Class A common stock (in shares)			4,637	(4,637)
Exchanges of noncontrolling interest for Class A common stock			$ 5	$ (5)		13,403			(13,403)
Recognition of tax receivable agreement liability resulting from exchanges of noncontrolling interest for Class A common stock	(19,198)					(19,198)
Net deferred tax asset resulting from changes in outside basis difference on investment in Switch, Ltd.	16,610					16,610
Balance (in shares) at Mar. 31, 2020			95,035	146,410
Balance at Mar. 31, 2020	$ 617,837		$ 95	$ 146		$ 217,124	(1,754)	$ 79	402,147
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared (in dollars per share)	$ 0.0294
Cumulative adjustment due to adoption of new credit loss standard	$ (149)						$ (67)		$ (82)

Consolidated Statement of Sto_2

Consolidated Statement of Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Stockholders' Equity [Abstract]
Dividends declared (in dollars per share)	$ 0.0294	$ 0.0294

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$ (3,489)	$ 3,846
Depreciation and amortization of property and equipment	32,518	28,558
Loss on disposal of property and equipment	60	43
Deferred income taxes	(273)	206
Amortization of debt issuance costs	409	409
Credit loss expense (benefit)	18	(23)
Unrealized loss on interest rate swaps	16,745	4,985
Equity-based compensation	7,524	8,145
Amortization of portfolio energy credits	267	359
Cost of revenue for sales-type leases	2,803	0
Changes in operating assets and liabilities:
Accounts receivable	5,944	5,164
Prepaid expenses	454	58
Other current assets	(626)	(62)
Other assets	411	893
Accounts payable	1,987	(2,201)
Accrued salaries and benefits	1,025	249
Accrued expenses	117	1,650
Deferred revenue	(2,261)	673
Customer deposits	298	229
Increase (Decrease) in Operating Lease Liabilities	(1,281)	(1,198)
Other long-term liabilities	(92)	(61)
Net cash provided by operating activities	62,558	51,922
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	(80,898)	(45,946)
Proceeds from sale of property and equipment	0	16
Purchase of portfolio energy credits	(601)	(299)
Net cash used in investing activities	(81,499)	(46,229)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings	70,000	0
Repayment of borrowings, including finance lease liabilities	(1,671)	(1,500)
Change in long-term deposit	1,659	2,543
Payment of tax withholdings upon settlement of restricted stock unit awards	(4,040)	(1,338)
Dividends paid to Class A common stockholders	2,795	0
Distributions paid to noncontrolling interest	(4,222)	0
Net cash provided by (used in) financing activities	58,931	(295)
NET INCREASE IN CASH AND CASH EQUIVALENTS	39,990	5,398
CASH AND CASH EQUIVALENTS—Beginning of period	24,721	81,560
CASH AND CASH EQUIVALENTS—End of period	64,711	86,958
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest, net of amounts capitalized	7,106	6,588
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION:
Decrease in liabilities incurred to acquire property and equipment	(13,532)	(10,585)
Decrease in accrued construction payables incurred related to long-term deposit	(882)	0
Increase in property and equipment related to transfer of long-term deposit	244	0
Increase in dividends payable on unvested restricted stock units	96	90
Decrease in noncontrolling interest as a result of exchanges for Class A common stock	(13,403)	0
Recognition of liabilities under tax receivable agreement	19,198	0
Increase (decrease) in deferred tax asset resulting from changes in outside basis difference on investment in Switch, Ltd.	16,610	(728)
Property and equipment obtained in exchange for new finance leases	145
Increase in distributions payable on unvested common units	82	490
Dividends payable settled with shares of Class A common stock	129	28
Dividends and distributions declared but not paid	$ 0	$ 7,154

Organization

Organization	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure	Organization Switch, Inc. was formed as a Nevada corporation in June 2017 for the purpose of completing an initial public offering (“IPO”) and related organizational transactions in order to carry on the business of Switch, Ltd. and its subsidiaries (collectively, “Switch,” and together with Switch, Inc., the “Company”). Switch is comprised of limited liability companies that provide colocation space and related services to global enterprises, financial companies, government agencies, and others that conduct critical business on the internet. Switch develops and operates data centers in Nevada, which are Tier IV Gold certified, Michigan, and Georgia (which opened in the first quarter of 2020), delivering redundant services with low latency and super capacity transport environments. As the manager of Switch, Ltd., Switch, Inc. operates and controls all of the business and affairs of Switch.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for quarterly reports on Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted. These consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Management believes that the accompanying consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of these consolidated financial statements. The consolidated results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020, or for any other future annual or interim period. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and all significant intercompany transactions and balances have been eliminated. As the sole manager of Switch, Ltd., Switch, Inc. operates and controls all of the business and affairs of Switch, has the sole voting interest in, and controls the management of, Switch, and has the obligation to absorb the losses of, and receive benefits from, Switch. Accordingly, Switch, Inc. identifies itself as the primary beneficiary of Switch and began consolidating Switch in its consolidated financial statements as of October 11, 2017, the closing date of the IPO, resulting in a noncontrolling interest related to the common units of Switch, Ltd. (“Common Units”) held by members, including Rob Roy, the Founder, Chief Executive Officer and Chairman of Switch, Ltd., and an affiliated entity of Mr. Roy (collectively, the “Founder Members”), other than Switch, Inc. on its consolidated financial statements. The Company periodically evaluates entities for consolidation either through ownership of a majority voting interest, or through means other than voting interest, in accordance with the Variable Interest Entity (“VIE”) accounting model. A VIE is an entity in which either (i) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of such entity that most significantly impact such entity’s economic performance or (ii) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to the allowance for credit losses, useful lives of property and equipment, deferred income taxes, liabilities under the tax receivable agreement, equity-based compensation, deferred revenue, incremental borrowing rate, fair value of performance obligations, and probability assessments of exercising renewal options on leases. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable. Actual results could differ from these estimates. Significant Accounting Policies A description of the Company’s significant accounting policies is included in the audited financial statements within its Annual Report on Form 10-K for the year ended December 31, 2019. No other changes to significant accounting policies have occurred since the year ended December 31, 2019, with the exception of those detailed below. Concentration of Credit and Other Risks Although the Company operates primarily in Nevada, realization of its receivables and its future operations and cash flows could be affected by adverse economic conditions, both regionally and elsewhere in the United States. During the three months ended March 31, 2020 and 2019, the Company’s largest customer and its affiliates comprised 14% and 11%, respectively, of the Company’s revenue. Two customers accounted for 10% or more of total receivables, including net investments in sales-type leases, as of March 31, 2020 and two customers, one of which was the Company’s largest customer and its affiliate, accounted for 10% or more of total receivables as of December 31, 2019. Revenue Recognition Contract Balances The opening and closing balances of the Company’s contract assets, net of allowance for credit losses, and deferred revenue are as follows: Contract Assets, Current Portion (1) Contract Assets (2) Deferred Revenue, Current Portion (3) Deferred Revenue (4) (in thousands) December 31, 2019 496 3,216 14,991 27,852 March 31, 2020 362 3,393 15,826 24,756 Change $ (134) $ 177 $ 835 $ (3,096) ________________________________________ (1) Amounts are included within other current assets on the Company’s consolidated balance sheets. (2) Amounts are included within other assets on the Company’s consolidated balance sheets. (3) Amounts include $3.8 million and $3.6 million of deferred revenue related to leases as of December 31, 2019 and March 31, 2020, respectively. (4) Amounts include $7.9 million and $3.7 million of deferred revenue related to leases as of December 31, 2019 and March 31, 2020, respectively. The differences between the opening and closing balances of the Company’s deferred revenue primarily result from timing differences between the Company’s satisfaction of performance obligations and the associated customer payments. Revenue recognized during the three months ended March 31, 2020 from the balance of deferred revenue as of December 31, 2019 was $6.6 million. For the three months ended March 31, 2020 and 2019, no impairment losses related to contract assets were recognized on the consolidated statements of comprehensive (loss) income. Remaining Performance Obligations Remaining performance obligations represent contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized in future periods. These amounts as of March 31, 2020 were $790.1 million, 34%, 41%, and 13% of which is expected to be recognized over the next year, one three Fair Value Measurements Information about the Company’s financial assets and liabilities measured at fair value on a recurring basis is presented below: March 31, 2020 Balance Sheet Classification Carrying Value Level 1 Level 2 Level 3 (in thousands) Assets: Cash equivalents Cash and cash equivalents $ 27,229 $ 27,229 $ — $ — Liabilities: Interest rate swaps Interest rate swap liability, current portion $ 8,297 $ — $ 8,297 $ — Interest rate swaps Other long-term liabilities $ 22,462 $ — $ 22,462 $ — December 31, 2019 Balance Sheet Classification Carrying Value Level 1 Level 2 Level 3 (in thousands) Liabilities: Interest rate swaps Interest rate swap liability, current portion $ 3,464 $ — $ 3,464 $ — Interest rate swaps Other long-term liabilities $ 10,550 $ — $ 10,550 $ — Transfers between levels of fair value hierarchy are recorded at the end of the reporting period during which the events or changes in circumstances that caused the transfers occur. There were no transfers between levels of fair value hierarchy during the periods presented. The fair value of interest rate swaps was measured using a present value of cash flow valuation technique based on forward yield curves for the same or similar financial instruments. The estimated fair value of the Company’s long-term debt as of March 31, 2020 and December 31, 2019 was approximately $788.5 million and $755.0 million, respectively, compared to its carrying value, excluding debt issuance costs, of $823.5 million and $755.0 million, respectively. The estimated fair value of the Company’s long-term debt was based on Level 2 inputs using quoted market prices on or about March 31, 2020 and December 31, 2019, respectively. Recent Accounting Pronouncements ASU 2014-09–Revenue from Contracts with Customers and ASU 2016-02–Leases In the fourth quarter of 2019, the Company adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) and ASU 2016-02, Leases (Topic 842) effective January 1, 2019, each using the modified retrospective approach. Results for the three months ended March 31, 2019 have been modified to reflect the adoption of this guidance each on January 1, 2019. ASU 2016-13–Financial Instruments–Credit Losses In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). Under this guidance, a company will be required to use a new forward-looking “expected loss” model for trade and other receivables that generally will result in the earlier recognition of allowances for losses. The amendments in ASU 2016-13 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and requires a modified retrospective approach to adoption. In April 2019, the FASB issued ASU 2019-04, which, among other amendments, allows for certain policy elections and practical expedients related to accrued interest on financial instruments. In May 2019, the FASB issued ASU 2019-05, which granted targeted transition relief by allowing entities to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost. In November 2019, the FASB issued ASU 2019-10 and ASU 2019-11, which addressed certain aspects of the guidance related to effective dates, expected recoveries, troubled debt restructurings, accrued interest receivables, and financial assets secured by collateral. In February and March 2020, the FASB also issued ASU 2020-02 and ASU 2020-03, respectively, which provide certain amendments and improvements to sections of ASU 2016-13. The Company adopted this guidance effective January 1, 2020 using the modified retrospective method. As a result of this adoption, the Company measured an allowance for current expected credit losses for its accounts receivable and contract assets through a loss rate method; whereby, based on past events, such as prior write-offs, it determined expected losses as of the adoption date, while adjusting for current and forward-looking conditions, such as economic news and trends, customer concentrations, changes in customer payment terms, and customer credit-worthiness. Customer credit-worthiness is determined through indicators such as third-party credit ratings, collection experience, and other internal metrics. If a customer‘s credit-worthiness resulted in an impairment of their ability to make payments, greater allowances for credit losses may be required. The Company pooled its assets based on these conditions such that each asset pool reflected a homogenous set of asset risks, including characteristics such as credit ratings, customer industry, contract term, and historical credit loss patterns. For any period beyond a reasonable and supportable forecast for current and forward-looking conditions, the Company reverted to a loss rate based only on historical information. The adoption of this guidance did not materially impact the Company’s consolidated financial statements. ASU 2018-13–Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, Disclosure Framework–Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The amendments in this update modify the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The amendments in ASU 2018-13 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. In addition, in November 2018, the FASB issued ASU 2018-19, which provides clarifications and improvements on sections of ASU 2018-13. The Company has adopted this guidance as of March 31, 2020. The adoption of this guidance did not materially impact the Company’s consolidated financial statements. ASU 2019-12–Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740)–Simplifying the Accounting for Income Taxes (“ASU 2019-12”). The amendments in ASU 2019-12 provide certain clarifications and simplify accounting for income taxes by removing certain exceptions to the general principles in the current guidance. The amendments in ASU 2019-12 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted in periods for which financial statements have not yet been issued. The Company is evaluating the impact the adoption of this guidance will have on its consolidated financial statements. The Company has not decided if early adoption will be considered. ASU 2020-04–Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848)–Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). The amendments in ASU 2020-04 provide optional expedients and exceptions to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform if certain criteria are met. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The amendments in this update are elective and are effective upon issuance for all entities. The Company has adopted this guidance as of March 31, 2020. The adoption of this guidance did not materially impact the Company’s consolidated financial statements. Reclassification The Company reclassified the current portion of its interest rate swap liability to present it separately from accrued expenses on the consolidated balance sheet as of December 31, 2019 to be consistent with the current period presentation. The reclassification had no impact on the Company’s financial condition, results of operations, or net cash flows.

Property and Equipment, Net

Property and Equipment, Net	3 Months Ended
	Mar. 31, 2020
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	Property and Equipment, Net Property and equipment, net consists of the following: March 31, December 31, 2020 2019 (in thousands) Land and land improvements $ 275,322 $ 223,877 Buildings, building improvements, and leasehold improvements 505,294 435,214 Substation equipment 19,780 19,780 Data center equipment 1,130,743 1,021,056 Vehicles 1,825 1,732 Core network equipment 38,943 36,572 Fiber facilities 13,644 13,180 Computer equipment, furniture and fixtures 42,748 39,057 Finance lease right-of-use assets 72,957 72,569 Construction in progress 81,353 254,750 Property and equipment, gross 2,182,609 2,117,787 Less: accumulated depreciation and amortization (599,118) (566,670) Property and equipment, net $ 1,583,491 $ 1,551,117 Accumulated amortization for finance lease right-of-use assets totaled $12.3 million and $11.7 million as of March 31, 2020 and December 31, 2019, respectively. During the three months ended March 31, 2020 and 2019, capitalized interest was $1.8 million and $1.3 million, respectively. The Company capitalized internal use software costs of $0.1 million and $0.5 million during the three months ended March 31, 2020 and 2019, respectively. Total depreciation and amortization of property and equipment recognized on the consolidated statements of comprehensive (loss) income was as follows: Three Months Ended 2020 2019 (in thousands) Cost of revenue $ 31,228 $ 27,810 Selling, general and administrative expense 1,290 748 Total depreciation and amortization of property and equipment $ 32,518 $ 28,558

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Operating Leases During the three months ended March 31, 2020 and 2019, lease costs related to operating leases were $1.8 million and $1.9 million, respectively. Related party lease costs included in these amounts were $1.2 million for each of the three months ended March 31, 2020 and 2019. Legal Proceedings On September 7, 2017, Switch, Ltd. and Switch, Inc. were named in a lawsuit filed in the U.S. District Court for the District of Nevada by V5 Technologies formerly d/b/a Cobalt Data Centers. The lawsuit alleges, among other things, that Switch, Ltd. and Switch, Inc. monopolized the Las Vegas Metropolitan area of Southern Nevada’s data center colocation market and engaged in unfair business practices leading to the failure of Cobalt Data Centers in 2015 and seeks monetary damages in an amount yet to be disclosed. Discovery closed in February 2020. In March 2020, both parties filed motions for summary judgment and are waiting for the court to rule on the motions. Switch, Ltd. and Switch, Inc. are vigorously defending the case. On September 12, 2017, Switch, Ltd. filed a complaint in the Eighth Judicial District of Nevada against the consultant, Stephen Fairfax, and his business, MTechnology Inc. Among other claims, Switch raised allegations of breach of contract and misappropriation of trade secrets. The complaint also alleged that Aligned Data Centers LLC (“Aligned”) hired Mr. Fairfax and MTechnology Inc. to design their data centers; that this consultant had toured Switch under a non-disclosure agreement; and that this consultant breached his confidentiality agreements with Switch by using Switch’s designs to design the Aligned data centers. Switch, Ltd. is seeking an injunction to prevent the defendants in the lawsuit from infringing Switch, Ltd.’s patents, as well as other remedies. The parties are currently engaged in discovery. Four substantially similar putative class action complaints, captioned Martz v. Switch, Inc. et al. (filed April 20, 2018); Palkon v. Switch, Inc. et al. (filed April 30, 2018); Chun v. Switch, Inc. et al. (filed May 11, 2018); and Silverberg v. Switch, Inc. et al. (filed June 6, 2018), were filed in the Eighth Judicial District of Nevada, and subsequently consolidated into a single case (the “State Court Securities Action”). Additionally, on June 11, 2018, one putative class action complaint captioned Cai v. Switch, Inc. et al. was filed in the United States District Court for the District of New Jersey (the “Federal Court Securities Action,” and collectively with the State Court Securities Action, the “Securities Actions”) and subsequently transferred to the Eighth Judicial District of Nevada in August 2018 and the federal court appointed Oscar Farach lead plaintiff. These lawsuits were filed against Switch, Inc., certain current and former officers and directors and certain underwriters of Switch, Inc.’s IPO alleging federal securities law violations in connection with the IPO. These lawsuits were brought by purported stockholders of Switch, Inc. seeking to represent a class of stockholders who purchased Class A common stock in or traceable to the IPO, and seek unspecified damages and other relief. In October 2018, the state court granted the defendants’ motion to stay the State Court Securities Action in favor of the Federal Court Securities Action, which stay was affirmed by the Nevada Supreme Court in September 2019. With respect to the Federal Court Securities Action, in July 2019, the federal court granted Switch, Inc.’s motion to dismiss in part, which narrowed the scope of the plaintiff’s case. In December 2019, Switch, Inc. filed a motion for judgment on the pleadings and the parties are waiting for the federal court to rule on the motion. The parties are currently engaged in discovery in the Federal Court Securities Action. Switch, Inc. believes that these lawsuits are without merit and intends to continue to vigorously defend against them. On September 10, 2018, two purported stockholders of Switch, Inc. filed substantially similar shareholder derivative complaints, respectively captioned Liu v. Roy et al., and Zhao v. Roy et al., in the Eighth Judicial District of Nevada, which were subsequently consolidated into a single case (the “Derivative Shareholder Action”). These lawsuits allege breaches of fiduciary duty, unjust enrichment, waste of corporate assets, abuse of control, and gross mismanagement against certain current and former officers and directors of Switch, Inc. The plaintiffs also named Switch, Inc. as a nominal defendant. The complaints arise generally from the same allegations described in the State Court Securities Action and Federal Court Securities Action. The plaintiffs seek unspecified damages on Switch, Inc.’s behalf from the officer and director defendants, certain corporate governance actions, compensatory awards, and other relief. In December 2019, the court granted the parties’ stipulation to stay the Derivative Shareholder Action until the earlier of any of the following events: the Securities Actions are resolved with prejudice as to each defendant or a motion for summary judgment is resolved in the Federal Court Securities Action. The outcomes of the legal proceedings are inherently unpredictable, subject to significant uncertainties, and could be material to the Company’s financial condition, results of operations, and cash flows for a particular period. Where the Company is a defendant, it will vigorously defend against the claims pleaded against it. These actions are each in preliminary stages and management has determined that based on proceedings to date, it is currently unable to determine the probability of the outcome of these actions or the range of reasonably possible loss, if any.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company recorded a net increase in deferred tax assets of $16.6 million during the three months ended March 31, 2020, with a corresponding increase to additional paid in capital, and a net decrease in deferred tax assets of $0.7 million during the three months ended March 31, 2019, with a corresponding decrease to additional paid in capital, resulting from changes in the outside basis difference on Switch, Inc.’s investment in Switch, Ltd. The Company has determined it is more-likely-than-not that it will be able to realize this deferred tax asset in the future. The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted in March 2020. The Company does not expect the provisions of the CARES Act to have a significant impact on the effective tax rate or the deferred income tax positions of the Company. Tax Receivable Agreement

Equity-Based Compensation

Equity-Based Compensation	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
Equity-Based Compensation	Equity-Based Compensation Total equity-based compensation recognized on the consolidated statements of comprehensive (loss) income was as follows: Three Months Ended 2020 2019 (in thousands) Cost of revenue $ 470 $ 373 Selling, general and administrative expense 7,054 7,772 Total equity-based compensation $ 7,524 $ 8,145

Non-controlling Interest

Non-controlling Interest	3 Months Ended
	Mar. 31, 2020
Noncontrolling Interest [Abstract]
Non-controlling Interest	Noncontrolling Interest Ownership Switch, Inc. owns a minority economic interest in Switch, Ltd., where “economic interests” means the right to receive any distributions, whether cash, property or securities of Switch, Ltd., in connection with Common Units. Switch, Inc. presents interest held by noncontrolling interest holders within noncontrolling interest in the consolidated financial statements. During the three months ended March 31, 2020, Switch, Inc. issued an aggregate of 4.6 million shares of Class A common stock to members of Switch, Ltd. in connection with such members’ redemptions of an equivalent number of Common Units and corresponding cancellation and retirement of an equivalent number of Switch, Inc.’s Class B common stock. Such retired shares of Class B common stock may not be reissued. The redemptions occurred pursuant to the terms of the Switch operating agreement entered into in connection with the Company’s IPO. In February 2020, Switch, Inc.’s Board of Directors authorized the repurchase by Switch, Ltd. of up to $20.0 million of its outstanding Common Units, which authorization expired unused on March 17, 2020. The ownership of the Common Units is summarized as follows: March 31, 2020 December 31, 2019 Units Ownership % Units Ownership % (units in thousands) Switch, Inc.’s ownership of Common Units (1) 94,955 39.8 % 89,688 37.8 % Noncontrolling interest holders’ ownership of Common Units (2) 143,620 60.2 % 147,859 62.2 % Total Common Units 238,575 100.0 % 237,547 100.0 % ________________________________________ (1) Common Units held by Switch, Inc. exclude 80,000 Common Units underlying unvested restricted stock awards as of March 31, 2020 and December 31, 2019. (2) Common Units held by noncontrolling interest holders exclude 2.8 million and 3.2 million unvested Common Unit awards as of March 31, 2020 and December 31, 2019, respectively. The Company uses the weighted average ownership percentages during the period to calculate the (loss) income before income taxes attributable to Switch, Inc. and the noncontrolling interest holders of Switch, Ltd.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Net Income Per Share	Net (Loss) Income Per Share The following table sets forth the calculation of basic and diluted net (loss) income per share: Three Months Ended 2020 2019 (in thousands, except per share data) Net (loss) income per share: Numerator—basic: Net (loss) income attributable to Switch, Inc.—basic $ (1,216) $ 733 Numerator—diluted: Net (loss) income attributable to Switch, Inc.—basic $ (1,216) $ 733 Effect of dilutive securities: Shares of Class B and Class C common stock — 2,397 Net (loss) income attributable to Switch, Inc.—diluted $ (1,216) $ 3,130 Denominator—basic: Weighted average shares outstanding—basic 94,366 55,536 Net (loss) income per share—basic $ (0.01) $ 0.01 Denominator—diluted: Weighted average shares outstanding—basic 94,366 55,536 Weighted average effect of dilutive securities: Stock options — 40 Restricted stock units — 311 Dividend equivalent units — 18 Restricted stock awards — 33 Shares of Class B and Class C common stock — 191,426 Weighted average shares outstanding—diluted 94,366 247,364 Net (loss) income per share—diluted $ (0.01) $ 0.01 Shares of Class B and Class C common stock do not share in the earnings or losses of Switch, Inc. and are therefore not participating securities. As such, separate calculations of basic and diluted net (loss) income per share for each of Class B and Class C common stock under the two-class method have not been presented. The following table presents potentially dilutive securities excluded from the computation of diluted net (loss) income per share for the periods presented because their effect would have been anti-dilutive. Three Months Ended 2020 2019 (in thousands) Stock options (1) 9,243 6,377 Restricted stock units (1) 3,672 1,979 Dividend equivalent units 29 — Restricted stock awards (1) 80 — Shares of Class B and Class C common stock (2) 146,410 — ________________________________________ (1) Represents the number of instruments outstanding at the end of the period. Application of the treasury stock method would reduce this amount if they had a dilutive effect and were included in the computation of diluted net (loss) income per share. (2) Shares of Class B and Class C common stock at the end of the period are considered potentially dilutive shares of Class A common stock under application of the if-converted method.

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting The Company’s chief operating decision maker is its Chief Executive Officer. The Company manages its operations as a single operating segment for the purposes of assessing performance and making operating decisions. All of the Company’s assets are maintained in the United States, although the Company holds an equity method investment in SUPERNAP International, S.A., which has deployed facilities in Italy and Thailand. The Company derives almost all of its revenue from sales to customers in the United States, based upon the billing address of the customer. Revenue derived from customers outside the United States, based upon the billing address of the customer, was less than 2% of revenue for each of the three months ended March 31, 2020 and 2019. The Company’s revenue is comprised of the following: Three Months Ended 2020 2019 (in thousands) Colocation $ 101,214 $ 86,485 Connectivity 25,191 18,995 Other 1,691 1,962 Total revenue $ 128,096 $ 107,442

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events In April and May 2020, Switch, Inc. issued an aggregate of 7.9 million and 3.5 million shares, respectively, of Class A common stock to members of Switch, Ltd. in connection with such members’ redemptions of an equivalent number of Common Units and corresponding cancellation and retirement of an equivalent number of shares of Class B common stock. Such retired shares of Class B common stock may not be reissued. The redemptions occurred pursuant to the terms of the Switch operating agreement entered into in connection with the Company’s IPO. In April 2020, a subsidiary of the Company entered into an agreement with an entity in which a member of its Board of Directors has a beneficial ownership interest for the purchase of approximately two acres of land in Las Vegas, Nevada for $2.5 million. The purchase is expected to close during the second quarter of 2020. In May 2020, Switch, Inc.’s Board of Directors declared a dividend of $0.0294 per share of Class A common stock, for a total estimated to be $3.1 million, to be paid on June 2, 2020 to holders of record as of May 22, 2020. Prior to the payment of this dividend, Switch, Ltd. will make a cash distribution to all holders of record of Common Units, including Switch, Inc., of $0.0294 per Common Unit, for a total estimated to be $7.1 million. In May 2020, Switch, Inc.’s Board of Directors authorized the repurchase by Switch, Ltd. of up to $20.0 million of its outstanding Common Units held by Founder Members, with any unused amount from this authorization expiring on June 16, 2020.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for quarterly reports on Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted. These consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and all significant intercompany transactions and balances have been eliminated. As the sole manager of Switch, Ltd., Switch, Inc. operates and controls all of the business and affairs of Switch, has the sole voting interest in, and controls the management of, Switch, and has the obligation to absorb the losses of, and receive benefits from, Switch. Accordingly, Switch, Inc. identifies itself as the primary beneficiary of Switch and began consolidating Switch in its consolidated financial statements as of October 11, 2017, the closing date of the IPO, resulting in a noncontrolling interest related to the common units of Switch, Ltd. (“Common Units”) held by members, including Rob Roy, the Founder, Chief Executive Officer and Chairman of Switch, Ltd., and an affiliated entity of Mr. Roy (collectively, the “Founder Members”), other than Switch, Inc. on its consolidated financial statements. The Company periodically evaluates entities for consolidation either through ownership of a majority voting interest, or through means other than voting interest, in accordance with the Variable Interest Entity (“VIE”) accounting model. A VIE is an entity in which either (i) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of such entity that most significantly impact such entity’s economic performance or (ii) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to the allowance for credit losses, useful lives of property and equipment, deferred income taxes, liabilities under the tax receivable agreement, equity-based compensation, deferred revenue, incremental borrowing rate, fair value of performance obligations, and probability assessments of exercising renewal options on leases. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable. Actual results could differ from these estimates.
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for quarterly reports on Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted. These consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Management believes that the accompanying consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of these consolidated financial statements. The consolidated results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020, or for any other future annual or interim period. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and all significant intercompany transactions and balances have been eliminated. As the sole manager of Switch, Ltd., Switch, Inc. operates and controls all of the business and affairs of Switch, has the sole voting interest in, and controls the management of, Switch, and has the obligation to absorb the losses of, and receive benefits from, Switch. Accordingly, Switch, Inc. identifies itself as the primary beneficiary of Switch and began consolidating Switch in its consolidated financial statements as of October 11, 2017, the closing date of the IPO, resulting in a noncontrolling interest related to the common units of Switch, Ltd. (“Common Units”) held by members, including Rob Roy, the Founder, Chief Executive Officer and Chairman of Switch, Ltd., and an affiliated entity of Mr. Roy (collectively, the “Founder Members”), other than Switch, Inc. on its consolidated financial statements. The Company periodically evaluates entities for consolidation either through ownership of a majority voting interest, or through means other than voting interest, in accordance with the Variable Interest Entity (“VIE”) accounting model. A VIE is an entity in which either (i) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of such entity that most significantly impact such entity’s economic performance or (ii) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to the allowance for credit losses, useful lives of property and equipment, deferred income taxes, liabilities under the tax receivable agreement, equity-based compensation, deferred revenue, incremental borrowing rate, fair value of performance obligations, and probability assessments of exercising renewal options on leases. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable. Actual results could differ from these estimates. Significant Accounting Policies A description of the Company’s significant accounting policies is included in the audited financial statements within its Annual Report on Form 10-K for the year ended December 31, 2019. No other changes to significant accounting policies have occurred since the year ended December 31, 2019, with the exception of those detailed below. Concentration of Credit and Other Risks Although the Company operates primarily in Nevada, realization of its receivables and its future operations and cash flows could be affected by adverse economic conditions, both regionally and elsewhere in the United States. During the three months ended March 31, 2020 and 2019, the Company’s largest customer and its affiliates comprised 14% and 11%, respectively, of the Company’s revenue. Two customers accounted for 10% or more of total receivables, including net investments in sales-type leases, as of March 31, 2020 and two customers, one of which was the Company’s largest customer and its affiliate, accounted for 10% or more of total receivables as of December 31, 2019. Revenue Recognition Contract Balances The opening and closing balances of the Company’s contract assets, net of allowance for credit losses, and deferred revenue are as follows: Contract Assets, Current Portion (1) Contract Assets (2) Deferred Revenue, Current Portion (3) Deferred Revenue (4) (in thousands) December 31, 2019 496 3,216 14,991 27,852 March 31, 2020 362 3,393 15,826 24,756 Change $ (134) $ 177 $ 835 $ (3,096) ________________________________________ (1) Amounts are included within other current assets on the Company’s consolidated balance sheets. (2) Amounts are included within other assets on the Company’s consolidated balance sheets. (3) Amounts include $3.8 million and $3.6 million of deferred revenue related to leases as of December 31, 2019 and March 31, 2020, respectively. (4) Amounts include $7.9 million and $3.7 million of deferred revenue related to leases as of December 31, 2019 and March 31, 2020, respectively. The differences between the opening and closing balances of the Company’s deferred revenue primarily result from timing differences between the Company’s satisfaction of performance obligations and the associated customer payments. Revenue recognized during the three months ended March 31, 2020 from the balance of deferred revenue as of December 31, 2019 was $6.6 million. For the three months ended March 31, 2020 and 2019, no impairment losses related to contract assets were recognized on the consolidated statements of comprehensive (loss) income. Remaining Performance Obligations Remaining performance obligations represent contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized in future periods. These amounts as of March 31, 2020 were $790.1 million, 34%, 41%, and 13% of which is expected to be recognized over the next year, one three Fair Value Measurements Information about the Company’s financial assets and liabilities measured at fair value on a recurring basis is presented below: March 31, 2020 Balance Sheet Classification Carrying Value Level 1 Level 2 Level 3 (in thousands) Assets: Cash equivalents Cash and cash equivalents $ 27,229 $ 27,229 $ — $ — Liabilities: Interest rate swaps Interest rate swap liability, current portion $ 8,297 $ — $ 8,297 $ — Interest rate swaps Other long-term liabilities $ 22,462 $ — $ 22,462 $ — December 31, 2019 Balance Sheet Classification Carrying Value Level 1 Level 2 Level 3 (in thousands) Liabilities: Interest rate swaps Interest rate swap liability, current portion $ 3,464 $ — $ 3,464 $ — Interest rate swaps Other long-term liabilities $ 10,550 $ — $ 10,550 $ — Transfers between levels of fair value hierarchy are recorded at the end of the reporting period during which the events or changes in circumstances that caused the transfers occur. There were no transfers between levels of fair value hierarchy during the periods presented. The fair value of interest rate swaps was measured using a present value of cash flow valuation technique based on forward yield curves for the same or similar financial instruments. The estimated fair value of the Company’s long-term debt as of March 31, 2020 and December 31, 2019 was approximately $788.5 million and $755.0 million, respectively, compared to its carrying value, excluding debt issuance costs, of $823.5 million and $755.0 million, respectively. The estimated fair value of the Company’s long-term debt was based on Level 2 inputs using quoted market prices on or about March 31, 2020 and December 31, 2019, respectively. Recent Accounting Pronouncements ASU 2014-09–Revenue from Contracts with Customers and ASU 2016-02–Leases In the fourth quarter of 2019, the Company adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) and ASU 2016-02, Leases (Topic 842) effective January 1, 2019, each using the modified retrospective approach. Results for the three months ended March 31, 2019 have been modified to reflect the adoption of this guidance each on January 1, 2019. ASU 2016-13–Financial Instruments–Credit Losses In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). Under this guidance, a company will be required to use a new forward-looking “expected loss” model for trade and other receivables that generally will result in the earlier recognition of allowances for losses. The amendments in ASU 2016-13 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and requires a modified retrospective approach to adoption. In April 2019, the FASB issued ASU 2019-04, which, among other amendments, allows for certain policy elections and practical expedients related to accrued interest on financial instruments. In May 2019, the FASB issued ASU 2019-05, which granted targeted transition relief by allowing entities to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost. In November 2019, the FASB issued ASU 2019-10 and ASU 2019-11, which addressed certain aspects of the guidance related to effective dates, expected recoveries, troubled debt restructurings, accrued interest receivables, and financial assets secured by collateral. In February and March 2020, the FASB also issued ASU 2020-02 and ASU 2020-03, respectively, which provide certain amendments and improvements to sections of ASU 2016-13. The Company adopted this guidance effective January 1, 2020 using the modified retrospective method. As a result of this adoption, the Company measured an allowance for current expected credit losses for its accounts receivable and contract assets through a loss rate method; whereby, based on past events, such as prior write-offs, it determined expected losses as of the adoption date, while adjusting for current and forward-looking conditions, such as economic news and trends, customer concentrations, changes in customer payment terms, and customer credit-worthiness. Customer credit-worthiness is determined through indicators such as third-party credit ratings, collection experience, and other internal metrics. If a customer‘s credit-worthiness resulted in an impairment of their ability to make payments, greater allowances for credit losses may be required. The Company pooled its assets based on these conditions such that each asset pool reflected a homogenous set of asset risks, including characteristics such as credit ratings, customer industry, contract term, and historical credit loss patterns. For any period beyond a reasonable and supportable forecast for current and forward-looking conditions, the Company reverted to a loss rate based only on historical information. The adoption of this guidance did not materially impact the Company’s consolidated financial statements. ASU 2018-13–Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, Disclosure Framework–Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The amendments in this update modify the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The amendments in ASU 2018-13 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. In addition, in November 2018, the FASB issued ASU 2018-19, which provides clarifications and improvements on sections of ASU 2018-13. The Company has adopted this guidance as of March 31, 2020. The adoption of this guidance did not materially impact the Company’s consolidated financial statements. ASU 2019-12–Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740)–Simplifying the Accounting for Income Taxes (“ASU 2019-12”). The amendments in ASU 2019-12 provide certain clarifications and simplify accounting for income taxes by removing certain exceptions to the general principles in the current guidance. The amendments in ASU 2019-12 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted in periods for which financial statements have not yet been issued. The Company is evaluating the impact the adoption of this guidance will have on its consolidated financial statements. The Company has not decided if early adoption will be considered. ASU 2020-04–Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848)–Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). The amendments in ASU 2020-04 provide optional expedients and exceptions to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform if certain criteria are met. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The amendments in this update are elective and are effective upon issuance for all entities. The Company has adopted this guidance as of March 31, 2020. The adoption of this guidance did not materially impact the Company’s consolidated financial statements. Reclassification The Company reclassified the current portion of its interest rate swap liability to present it separately from accrued expenses on the consolidated balance sheet as of December 31, 2019 to be consistent with the current period presentation. The reclassification had no impact on the Company’s financial condition, results of operations, or net cash flows.
Recent Accounting Pronouncements	Recent Accounting Pronouncements ASU 2014-09–Revenue from Contracts with Customers and ASU 2016-02–Leases In the fourth quarter of 2019, the Company adopted Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) and ASU 2016-02, Leases (Topic 842) effective January 1, 2019, each using the modified retrospective approach. Results for the three months ended March 31, 2019 have been modified to reflect the adoption of this guidance each on January 1, 2019. ASU 2016-13–Financial Instruments–Credit Losses In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). Under this guidance, a company will be required to use a new forward-looking “expected loss” model for trade and other receivables that generally will result in the earlier recognition of allowances for losses. The amendments in ASU 2016-13 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and requires a modified retrospective approach to adoption. In April 2019, the FASB issued ASU 2019-04, which, among other amendments, allows for certain policy elections and practical expedients related to accrued interest on financial instruments. In May 2019, the FASB issued ASU 2019-05, which granted targeted transition relief by allowing entities to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost. In November 2019, the FASB issued ASU 2019-10 and ASU 2019-11, which addressed certain aspects of the guidance related to effective dates, expected recoveries, troubled debt restructurings, accrued interest receivables, and financial assets secured by collateral. In February and March 2020, the FASB also issued ASU 2020-02 and ASU 2020-03, respectively, which provide certain amendments and improvements to sections of ASU 2016-13. The Company adopted this guidance effective January 1, 2020 using the modified retrospective method. As a result of this adoption, the Company measured an allowance for current expected credit losses for its accounts receivable and contract assets through a loss rate method; whereby, based on past events, such as prior write-offs, it determined expected losses as of the adoption date, while adjusting for current and forward-looking conditions, such as economic news and trends, customer concentrations, changes in customer payment terms, and customer credit-worthiness. Customer credit-worthiness is determined through indicators such as third-party credit ratings, collection experience, and other internal metrics. If a customer‘s credit-worthiness resulted in an impairment of their ability to make payments, greater allowances for credit losses may be required. The Company pooled its assets based on these conditions such that each asset pool reflected a homogenous set of asset risks, including characteristics such as credit ratings, customer industry, contract term, and historical credit loss patterns. For any period beyond a reasonable and supportable forecast for current and forward-looking conditions, the Company reverted to a loss rate based only on historical information. The adoption of this guidance did not materially impact the Company’s consolidated financial statements. ASU 2018-13–Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, Disclosure Framework–Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The amendments in this update modify the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The amendments in ASU 2018-13 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. In addition, in November 2018, the FASB issued ASU 2018-19, which provides clarifications and improvements on sections of ASU 2018-13. The Company has adopted this guidance as of March 31, 2020. The adoption of this guidance did not materially impact the Company’s consolidated financial statements. ASU 2019-12–Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740)–Simplifying the Accounting for Income Taxes (“ASU 2019-12”). The amendments in ASU 2019-12 provide certain clarifications and simplify accounting for income taxes by removing certain exceptions to the general principles in the current guidance. The amendments in ASU 2019-12 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted in periods for which financial statements have not yet been issued. The Company is evaluating the impact the adoption of this guidance will have on its consolidated financial statements. The Company has not decided if early adoption will be considered. ASU 2020-04–Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848)–Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). The amendments in ASU 2020-04 provide optional expedients and exceptions to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform if certain criteria are met. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The amendments in this update are elective and are effective upon issuance for all entities. The Company has adopted this guidance as of March 31, 2020. The adoption of this guidance did not materially impact the Company’s consolidated financial statements.
Fair Value Measurement	Fair Value Measurements Information about the Company’s financial assets and liabilities measured at fair value on a recurring basis is presented below: March 31, 2020 Balance Sheet Classification Carrying Value Level 1 Level 2 Level 3 (in thousands) Assets: Cash equivalents Cash and cash equivalents $ 27,229 $ 27,229 $ — $ — Liabilities: Interest rate swaps Interest rate swap liability, current portion $ 8,297 $ — $ 8,297 $ — Interest rate swaps Other long-term liabilities $ 22,462 $ — $ 22,462 $ — December 31, 2019 Balance Sheet Classification Carrying Value Level 1 Level 2 Level 3 (in thousands) Liabilities: Interest rate swaps Interest rate swap liability, current portion $ 3,464 $ — $ 3,464 $ — Interest rate swaps Other long-term liabilities $ 10,550 $ — $ 10,550 $ — Transfers between levels of fair value hierarchy are recorded at the end of the reporting period during which the events or changes in circumstances that caused the transfers occur. There were no transfers between levels of fair value hierarchy during the periods presented. The fair value of interest rate swaps was measured using a present value of cash flow valuation technique based on forward yield curves for the same or similar financial instruments.
Reclassification	Reclassification The Company reclassified the current portion of its interest rate swap liability to present it separately from accrued expenses on the consolidated balance sheet as of December 31, 2019 to be consistent with the current period presentation. The reclassification had no impact on the Company’s financial condition, results of operations, or net cash flows.
Revenue Recognition	Revenue Recognition Contract Balances The opening and closing balances of the Company’s contract assets, net of allowance for credit losses, and deferred revenue are as follows: Contract Assets, Current Portion (1) Contract Assets (2) Deferred Revenue, Current Portion (3) Deferred Revenue (4) (in thousands) December 31, 2019 496 3,216 14,991 27,852 March 31, 2020 362 3,393 15,826 24,756 Change $ (134) $ 177 $ 835 $ (3,096) ________________________________________ (1) Amounts are included within other current assets on the Company’s consolidated balance sheets. (2) Amounts are included within other assets on the Company’s consolidated balance sheets. (3) Amounts include $3.8 million and $3.6 million of deferred revenue related to leases as of December 31, 2019 and March 31, 2020, respectively. (4) Amounts include $7.9 million and $3.7 million of deferred revenue related to leases as of December 31, 2019 and March 31, 2020, respectively. The differences between the opening and closing balances of the Company’s deferred revenue primarily result from timing differences between the Company’s satisfaction of performance obligations and the associated customer payments. Revenue recognized during the three months ended March 31, 2020 from the balance of deferred revenue as of December 31, 2019 was $6.6 million. For the three months ended March 31, 2020 and 2019, no impairment losses related to contract assets were recognized on the consolidated statements of comprehensive (loss) income. Remaining Performance Obligations Remaining performance obligations represent contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized in future periods. These amounts as of March 31, 2020 were $790.1 million, 34%, 41%, and 13% of which is expected to be recognized over the next year, one three

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Fair Value Measurements	Information about the Company’s financial assets and liabilities measured at fair value on a recurring basis is presented below: March 31, 2020 Balance Sheet Classification Carrying Value Level 1 Level 2 Level 3 (in thousands) Assets: Cash equivalents Cash and cash equivalents $ 27,229 $ 27,229 $ — $ — Liabilities: Interest rate swaps Interest rate swap liability, current portion $ 8,297 $ — $ 8,297 $ — Interest rate swaps Other long-term liabilities $ 22,462 $ — $ 22,462 $ — December 31, 2019 Balance Sheet Classification Carrying Value Level 1 Level 2 Level 3 (in thousands) Liabilities: Interest rate swaps Interest rate swap liability, current portion $ 3,464 $ — $ 3,464 $ — Interest rate swaps Other long-term liabilities $ 10,550 $ — $ 10,550 $ —
Opening and Closing Balances of the Company's Contract Assets and Deferred Revenue	The opening and closing balances of the Company’s contract assets, net of allowance for credit losses, and deferred revenue are as follows: Contract Assets, Current Portion (1) Contract Assets (2) Deferred Revenue, Current Portion (3) Deferred Revenue (4) (in thousands) December 31, 2019 496 3,216 14,991 27,852 March 31, 2020 362 3,393 15,826 24,756 Change $ (134) $ 177 $ 835 $ (3,096) ________________________________________ (1) Amounts are included within other current assets on the Company’s consolidated balance sheets. (2) Amounts are included within other assets on the Company’s consolidated balance sheets. (3) Amounts include $3.8 million and $3.6 million of deferred revenue related to leases as of December 31, 2019 and March 31, 2020, respectively. (4) Amounts include $7.9 million and $3.7 million of deferred revenue related to leases as of December 31, 2019 and March 31, 2020, respectively.

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	3 Months Ended
	Mar. 31, 2020
Property, Plant and Equipment [Abstract]
Components of Property and Equipment, Net	Property and equipment, net consists of the following: March 31, December 31, 2020 2019 (in thousands) Land and land improvements $ 275,322 $ 223,877 Buildings, building improvements, and leasehold improvements 505,294 435,214 Substation equipment 19,780 19,780 Data center equipment 1,130,743 1,021,056 Vehicles 1,825 1,732 Core network equipment 38,943 36,572 Fiber facilities 13,644 13,180 Computer equipment, furniture and fixtures 42,748 39,057 Finance lease right-of-use assets 72,957 72,569 Construction in progress 81,353 254,750 Property and equipment, gross 2,182,609 2,117,787 Less: accumulated depreciation and amortization (599,118) (566,670) Property and equipment, net $ 1,583,491 $ 1,551,117
Depreciation and Amortization of Property and Equipment	Total depreciation and amortization of property and equipment recognized on the consolidated statements of comprehensive (loss) income was as follows: Three Months Ended 2020 2019 (in thousands) Cost of revenue $ 31,228 $ 27,810 Selling, general and administrative expense 1,290 748 Total depreciation and amortization of property and equipment $ 32,518 $ 28,558

Equity-Based Compensation (Tabl

Equity-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
Total Equity-Based Compensation Recognized in the Consolidated Statements of Comprehensive Income	Total equity-based compensation recognized on the consolidated statements of comprehensive (loss) income was as follows: Three Months Ended 2020 2019 (in thousands) Cost of revenue $ 470 $ 373 Selling, general and administrative expense 7,054 7,772 Total equity-based compensation $ 7,524 $ 8,145

Non-controlling Interest (Table

Non-controlling Interest (Tables)	3 Months Ended
	Mar. 31, 2020
Noncontrolling Interest [Abstract]
Ownership of Common Units	The ownership of the Common Units is summarized as follows: March 31, 2020 December 31, 2019 Units Ownership % Units Ownership % (units in thousands) Switch, Inc.’s ownership of Common Units (1) 94,955 39.8 % 89,688 37.8 % Noncontrolling interest holders’ ownership of Common Units (2) 143,620 60.2 % 147,859 62.2 % Total Common Units 238,575 100.0 % 237,547 100.0 % ________________________________________ (1) Common Units held by Switch, Inc. exclude 80,000 Common Units underlying unvested restricted stock awards as of March 31, 2020 and December 31, 2019. (2) Common Units held by noncontrolling interest holders exclude 2.8 million and 3.2 million unvested Common Unit awards as of March 31, 2020 and December 31, 2019, respectively.

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Calculation of Basic and Diluted Net Income Per Share	The following table sets forth the calculation of basic and diluted net (loss) income per share: Three Months Ended 2020 2019 (in thousands, except per share data) Net (loss) income per share: Numerator—basic: Net (loss) income attributable to Switch, Inc.—basic $ (1,216) $ 733 Numerator—diluted: Net (loss) income attributable to Switch, Inc.—basic $ (1,216) $ 733 Effect of dilutive securities: Shares of Class B and Class C common stock — 2,397 Net (loss) income attributable to Switch, Inc.—diluted $ (1,216) $ 3,130 Denominator—basic: Weighted average shares outstanding—basic 94,366 55,536 Net (loss) income per share—basic $ (0.01) $ 0.01 Denominator—diluted: Weighted average shares outstanding—basic 94,366 55,536 Weighted average effect of dilutive securities: Stock options — 40 Restricted stock units — 311 Dividend equivalent units — 18 Restricted stock awards — 33 Shares of Class B and Class C common stock — 191,426 Weighted average shares outstanding—diluted 94,366 247,364 Net (loss) income per share—diluted $ (0.01) $ 0.01
Potentially Dilutive Securities Excluded from the Computation of Diluted Net Income Per Share	The following table presents potentially dilutive securities excluded from the computation of diluted net (loss) income per share for the periods presented because their effect would have been anti-dilutive. Three Months Ended 2020 2019 (in thousands) Stock options (1) 9,243 6,377 Restricted stock units (1) 3,672 1,979 Dividend equivalent units 29 — Restricted stock awards (1) 80 — Shares of Class B and Class C common stock (2) 146,410 — ________________________________________ (1) Represents the number of instruments outstanding at the end of the period. Application of the treasury stock method would reduce this amount if they had a dilutive effect and were included in the computation of diluted net (loss) income per share. (2) Shares of Class B and Class C common stock at the end of the period are considered potentially dilutive shares of Class A common stock under application of the if-converted method.

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Composition of Revenue	The Company’s revenue is comprised of the following: Three Months Ended 2020 2019 (in thousands) Colocation $ 101,214 $ 86,485 Connectivity 25,191 18,995 Other 1,691 1,962 Total revenue $ 128,096 $ 107,442

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Concentrations of Credit and Other Risks (Details) - Customer Concentration Risk	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue
Concentration Risk [Line Items]
Concentration risk percentage	14.00%	11.00%
Two Customers | Accounts Receivable
Concentration Risk [Line Items]
Concentration risk percentage	10.00%	10.00%

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Revenue Recognition (Details)	3 Months Ended
	Mar. 31, 2020USD ($)
Accounting Policies [Abstract]
Revenue recognized	$ 6,600,000
Impairment losses related to contract balances	$ 0

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Remaining Performance Obligations (Details) $ in Millions	Mar. 31, 2020USD ($)
Revenue from External Customer [Line Items]
Remaining performance obligation	$ 790.1
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01
Revenue from External Customer [Line Items]
Percent of remaining performance obligation expected to be recognized	34.00%
Period over which the remaining performance obligation is expected to be recognized	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01
Revenue from External Customer [Line Items]
Percent of remaining performance obligation expected to be recognized	41.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | Minimum
Revenue from External Customer [Line Items]
Period over which the remaining performance obligation is expected to be recognized	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | Maximum
Revenue from External Customer [Line Items]
Period over which the remaining performance obligation is expected to be recognized	3 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
Revenue from External Customer [Line Items]
Percent of remaining performance obligation expected to be recognized	13.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | Minimum
Revenue from External Customer [Line Items]
Period over which the remaining performance obligation is expected to be recognized	3 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | Maximum
Revenue from External Customer [Line Items]
Period over which the remaining performance obligation is expected to be recognized	5 years

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Opening and Closing Balances of the Company's Contract Assets and Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Contract assets, current portion
Beginning balance	$ 496
Ending balance	362
Change	(134)
Contract assets
Beginning balance	3,216
Ending balance	3,393
Change	177
Deferred Revenue, Current
Beginning balance	14,991
Ending balance	15,826
Change	835
Deferred Revenue
Beginning balance	27,852
Ending balance	24,756
Change	(3,096)
Deferred revenue related to leases, current portion	3,600	$ 3,800
Deferred revenue related to leases, noncurrent portion	$ 3,700	$ 7,900

Summary of Significant Accoun_8

Summary of Significant Accounting Policies - Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents, carrying value	$ 27,229
Estimated fair value of long-term debt	788,500	$ 755,000
Long-term debt, gross	823,500	755,000
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents, fair value	27,229
Interest Rate Swap Agreements | Interest rate swap liability, current portion
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swaps	8,297	3,464
Interest Rate Swap Agreements | Interest rate swap liability, current portion | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swaps	8,297	3,464
Interest Rate Swap Agreements | Other long-term liabilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swaps	22,462	10,550
Interest Rate Swap Agreements | Other long-term liabilities | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swaps	$ 22,462	$ 10,550

Property and Equipment, Net - C

Property and Equipment, Net - Components of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,182,609	$ 2,117,787
Less: accumulated depreciation and amortization	(599,118)	(566,670)
Property and equipment, net	1,583,491	1,551,117
Land and land improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	275,322	223,877
Buildings, building improvements, and leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	505,294	435,214
Substation equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	19,780	19,780
Data center equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,130,743	1,021,056
Vehicles
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,825	1,732
Core network equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	38,943	36,572
Fiber facilities
Property, Plant and Equipment [Line Items]
Property and equipment, gross	13,644	13,180
Computer equipment, furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	42,748	39,057
Finance lease right-of-use assets
Property, Plant and Equipment [Line Items]
Property and equipment, gross	72,957	72,569
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 81,353	$ 254,750

Property and Equipment, Net - N

Property and Equipment, Net - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Accumulated amortization for capitalized leased assets	$ 12.3		$ 11.7
Capitalized interest	1.8	$ 1.3
Internal use software costs capitalized	$ 0.1	$ 0.5

Property and Equipment, Net - D

Property and Equipment, Net - Depreciation and Amortization of Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Property, Plant and Equipment [Line Items]
Depreciation and amortization of property and equipment	$ 32,518	$ 28,558
Cost of revenue
Property, Plant and Equipment [Line Items]
Depreciation and amortization of property and equipment	31,228	27,810
Selling, general and administrative expense
Property, Plant and Equipment [Line Items]
Depreciation and amortization of property and equipment	$ 1,290	$ 748

Commitments and Contingencies -

Commitments and Contingencies - Operating Leases (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Related Party Transaction [Line Items]
Rent expense related to operating leases	$ 1.8	$ 1.9
Related Parties
Related Party Transaction [Line Items]
Rent expense related to operating leases	$ 1.2	$ 1.2

Commitments and Contingencies_2

Commitments and Contingencies - Legal Proceedings (Details)	Sep. 10, 2018plaintiff	Jun. 11, 2018case	Jun. 08, 2018case
Martz v. Switch, Inc. et al.
Loss Contingencies [Line Items]
Number of complaints filed			4
Cai v. Switch, Inc. et al.
Loss Contingencies [Line Items]
Number of complaints filed		1
Liu v. Roy et al., and Zhao v. Roy et al.
Loss Contingencies [Line Items]
Number of plaintiffs | plaintiff	2

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Net deferred tax asset resulting from changes in outside basis difference on investment in Switch, Ltd.	$ 16,610	$ (728)
Liabilities under tax receivable agreement	$ 181,274		$ 162,076
Percent of tax benefits realized that the company must make payments to holders for	85.00%

Equity-Based Compensation - Tot

Equity-Based Compensation - Total Equity-Based Compensation Recognized in the Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Equity-based compensation expense	$ 7,524	$ 8,145
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Equity-based compensation expense	470	373
Selling, general and administrative expense
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Equity-based compensation expense	$ 7,054	$ 7,772

Non-controlling Interest - Narr

Non-controlling Interest - Narrative (Details) - USD ($) shares in Millions, $ in Millions	1 Months Ended	3 Months Ended
	Feb. 29, 2020	Mar. 31, 2020
Noncontrolling Interest [Line Items]
Increase in authorized amount under stock repurchase program	$ 20
Class A Common Stock
Noncontrolling Interest [Line Items]
Issuance of common stock (in shares)		4.6

Non-controlling Interest - Owne

Non-controlling Interest - Ownership of Common Units (Details) - shares	Mar. 31, 2020	Dec. 31, 2019
Common Units
Noncontrolling Interest [Line Items]
Unvested awards (in shares)	2,800,000	3,200,000
Restricted stock awards
Noncontrolling Interest [Line Items]
Unvested awards (in shares)	80,000
Switch, Ltd.
Noncontrolling Interest [Line Items]
Switch, Inc.'s ownership of Common Units (in shares)	94,955,000	89,688,000
Ownership percentage	39.80%	37.80%
Noncontrolling interest holders’ ownership of Common Units (in shares)	143,620,000	147,859,000
Noncontrolling interest holders’ ownership of Common Units	60.20%	62.20%
Total Common Units (in shares)	238,575,000	237,547,000

Net Income (Loss) Per Share - C

Net Income (Loss) Per Share - Calculation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Numerator—basic:
Net (loss) income attributable to Switch, Inc.—basic	$ (1,216)	$ 733
Numerator—diluted:
Net (loss) income attributable to Switch, Inc.—basic	(1,216)	733
Shares of Class B and Class C common stock	0	2,397
Net (loss) income attributable to Switch, Inc.—diluted	$ (1,216)	$ 3,130
Denominator—basic:
Weighted average shares outstanding—basic (in shares)	94,366	55,536
Basic net income per share (in dollars per share)	$ (0.01)	$ 0.01
Denominator—diluted:
Weighted average shares outstanding—basic (in shares)	94,366	55,536
Weighted average effect of dilutive securities:
Weighted average shares/units outstanding-diluted (in shares)	94,366	247,364
Diluted net income per share (in dollars per share)	$ (0.01)	$ 0.01
Weighted average effect of dilutive securities (in shares)	94,366	247,364
Stock options
Weighted average effect of dilutive securities:
Weighted average effect of dilutive securities (in shares)	0	40
Restricted stock units
Weighted average effect of dilutive securities:
Weighted average effect of dilutive securities (in shares)	0	311
Dividend equivalent units
Weighted average effect of dilutive securities:
Weighted average effect of dilutive securities (in shares)	0	18
Restricted stock awards
Weighted average effect of dilutive securities:
Weighted average effect of dilutive securities (in shares)	0	33
Shares of Class B and Class C common stock
Weighted average effect of dilutive securities:
Weighted average effect of dilutive securities (in shares)	0	191,426

Net Income (Loss) Per Share - P

Net Income (Loss) Per Share - Potentially Dilutive Securities Excluded from the Computation of Diluted Net Income Per Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net income per unit (in shares)	9,243	6,377
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net income per unit (in shares)	3,672	1,979
Dividend equivalent units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net income per unit (in shares)	29	0
Restricted stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net income per unit (in shares)	80	0
Shares of Class B and Class C common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net income per unit (in shares)	146,410	0

Segment Reporting - Narrative (

Segment Reporting - Narrative (Details) - segment	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue, Major Customer [Line Items]
Number of operating segments	1	1
Outside of the United States | Revenue | Geographic Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk percentage	2.00%	2.00%

Segment Reporting - Composition

Segment Reporting - Composition of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue from External Customer [Line Items]
Revenue	$ 128,096	$ 107,442
Colocation
Revenue from External Customer [Line Items]
Revenue	101,214	86,485
Connectivity
Revenue from External Customer [Line Items]
Revenue	25,191	18,995
Other
Revenue from External Customer [Line Items]
Revenue	$ 1,691	$ 1,962

Subsequent Events (Details)

Subsequent Events (Details) $ / shares in Units, $ in Thousands, shares in Millions	1 Months Ended			3 Months Ended
	May 31, 2020USD ($)$ / sharesshares	Apr. 30, 2020USD ($)ashares	Feb. 29, 2020USD ($)	Mar. 31, 2020USD ($)$ / sharesshares	Mar. 31, 2019USD ($)$ / shares
Subsequent Event [Line Items]
Dividends declared (in dollars per share) | $ / shares				$ 0.0294	$ 0.0294
Dividends declared				$ 2,891	$ 1,728
Increase in authorized amount under stock repurchase program			$ 20,000
Subsequent Event
Subsequent Event [Line Items]
Issuance of common stock (in shares) | shares	3.5	7.9
Area of land (in acres) | a		2
Payments to acquire land		$ 2,500
Dividends declared	$ 3,100
Increase in authorized amount under stock repurchase program	$ 20,000
Switch, Ltd. | Subsequent Event
Subsequent Event [Line Items]
Cash distributions to common unit holders (in dollars per share) | $ / shares	$ 0.0294
Cash distributions declared	$ 7,100
Class A Common Stock
Subsequent Event [Line Items]
Issuance of common stock (in shares) | shares				4.6
Class A Common Stock | Subsequent Event
Subsequent Event [Line Items]
Dividends declared (in dollars per share) | $ / shares	$ 0.0294