Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-13045 | |
Entity Registrant Name | IRON MOUNTAIN INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 23-2588479 | |
Entity Address, Address Line One | 85 New Hampshire Avenue | |
Entity Address, Address Line Two | Suite 150 | |
Entity Address, City or Town | Portsmouth | |
Entity Address, State or Province | NH | |
Entity Address, Postal Zip Code | 03801 | |
City Area Code | 617 | |
Local Phone Number | 535-4766 | |
Title of 12(b) Security | Common Stock, $.01 par value | |
Trading Symbol | IRM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Emerging Growth Company | false | |
Small Business Entity | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 291,852,409 | |
Entity Central Index Key | 0001020569 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 149,493 | $ 141,797 |
Accounts receivable (less allowances of $65,217 and $54,143 as of June 30, 2023 and December 31, 2022, respectively) | 1,182,154 | 1,174,915 |
Prepaid expenses and other | 279,522 | 230,433 |
Total Current Assets | 1,611,169 | 1,547,145 |
Property, Plant and Equipment: | ||
Property, plant and equipment | 9,546,766 | 9,025,765 |
Less—Accumulated depreciation | (3,943,300) | (3,910,321) |
Property, Plant and Equipment, Net | 5,603,466 | 5,115,444 |
Other Assets, Net: | ||
Goodwill | 4,928,145 | 4,882,734 |
Customer and supplier relationships and other intangible assets | 1,348,679 | 1,423,145 |
Operating lease right-of-use assets | 2,671,371 | 2,583,704 |
Other | 515,739 | 588,342 |
Total Other Assets, Net | 9,463,934 | 9,477,925 |
Total Assets | 16,678,569 | 16,140,514 |
Current Liabilities: | ||
Current portion of long-term debt | 102,582 | 87,546 |
Accounts payable | 482,244 | 469,198 |
Accrued expenses and other current liabilities (includes current portion of operating lease liabilities) | 1,141,613 | 1,031,910 |
Deferred revenue | 336,068 | 328,910 |
Total Current Liabilities | 2,062,507 | 1,917,564 |
Long-term Debt, net of current portion | 11,144,230 | 10,481,449 |
Long-term Operating Lease Liabilities, net of current portion | 2,513,975 | 2,429,167 |
Other Long-term Liabilities | 164,242 | 317,376 |
Deferred Income Taxes | 273,213 | 263,005 |
Commitments and Contingencies | ||
Redeemable Noncontrolling Interests | 104,059 | 95,160 |
Equity: | ||
Preferred stock (par value $0.01; authorized 10,000,000 shares; none issued and outstanding) | 0 | 0 |
Common stock (par value $0.01; authorized 400,000,000 shares; issued and outstanding 291,824,958 and 290,830,296 shares as of June 30, 2023 and December 31, 2022, respectively) | 2,918 | 2,908 |
Additional paid-in capital | 4,488,492 | 4,468,035 |
(Distributions in excess of earnings) Earnings in excess of distributions | (3,692,948) | (3,392,272) |
Accumulated other comprehensive items, net | (382,244) | (442,003) |
Total Iron Mountain Incorporated Stockholders' Equity | 416,218 | 636,668 |
Noncontrolling Interests | 125 | 125 |
Total Equity | 416,343 | 636,793 |
Total Liabilities and Equity | $ 16,678,569 | $ 16,140,514 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 65,217 | $ 54,143 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized shares (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, issued shares (in shares) | 0 | 0 |
Preferred stock, outstanding shares (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares (in shares) | 400,000,000 | 400,000,000 |
Common stock, issued shares (in shares) | 291,824,958 | 290,830,296 |
Common stock, outstanding shares (in shares) | 291,824,958 | 290,830,296 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues: | ||||
Total Revenues | $ 1,357,936 | $ 1,289,534 | $ 2,672,285 | $ 2,537,580 |
Operating Expenses: | ||||
Cost of sales (excluding depreciation and amortization) | 592,644 | 556,476 | 1,164,270 | 1,103,098 |
Selling, general and administrative | 311,805 | 295,394 | 606,325 | 576,117 |
Depreciation and amortization | 195,367 | 178,254 | 377,461 | 361,869 |
Acquisition and Integration Costs | 1,511 | 16,878 | 3,106 | 32,539 |
Restructuring and other transformation | 45,588 | 0 | 82,501 | 0 |
(Gain) Loss on disposal/write-down of property, plant and equipment, net | (1,505) | (51,249) | (14,566) | (51,954) |
Total Operating Expenses | 1,145,410 | 995,753 | 2,219,097 | 2,021,669 |
Operating Income (Loss) | 212,526 | 293,781 | 453,188 | 515,911 |
Interest Expense, Net (includes Interest Income of $2,290 and $2,171 for the three months ended June 30, 2023 and 2022, respectively) | 144,178 | 115,057 | 281,347 | 229,499 |
Other Expense (Income), Net | 62,950 | (41,217) | 84,150 | 14,684 |
Net Income (Loss) Before Provision (Benefit) for Income Taxes | 5,398 | 219,941 | 87,691 | 271,728 |
Provision (Benefit) for Income Taxes | 4,255 | 18,083 | 21,013 | 28,163 |
Net Income (Loss) | 1,143 | 201,858 | 66,678 | 243,565 |
Less: Net Income (Loss) Attributable to Noncontrolling Interests | 1,029 | 1,777 | 1,969 | 1,185 |
Net Income (Loss) Attributable to Iron Mountain Incorporated | $ 114 | $ 200,081 | $ 64,709 | $ 242,380 |
Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated: | ||||
Basic (in dollars per share) | $ 0 | $ 0.69 | $ 0.22 | $ 0.83 |
Diluted (in dollars per share) | $ 0 | $ 0.68 | $ 0.22 | $ 0.83 |
Weighted average common shares outstanding-basic (in shares) | 291,825,000 | 290,756,000 | 291,633,000 | 290,542,000 |
Weighted average common shares outstanding-diluted (in shares) | 293,527,000 | 292,487,234 | 293,288,000 | 292,166,419 |
Storage Rental | ||||
Revenues: | ||||
Total Revenues | $ 830,756 | $ 753,126 | $ 1,640,845 | $ 1,504,196 |
Service | ||||
Revenues: | ||||
Total Revenues | $ 527,180 | $ 536,408 | $ 1,031,440 | $ 1,033,384 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Interest income | $ 2,290 | $ 2,171 | $ 5,197 | $ 3,819 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ 1,143 | $ 201,858 | $ 66,678 | $ 243,565 |
Other Comprehensive Income (Loss): | ||||
Foreign Currency Translation Adjustment | 18,035 | (187,786) | 58,261 | (160,333) |
Change in Fair Value of Derivative Instruments | 7,896 | 34,211 | 4,454 | 50,977 |
Reclassifications from Accumulated Other Comprehensive Items, net | (2,527) | 0 | (2,527) | 0 |
Total Other Comprehensive Income (Loss): | 23,404 | (153,575) | 60,188 | (109,356) |
Comprehensive Income (Loss) | 24,547 | 48,283 | 126,866 | 134,209 |
Comprehensive Income (Loss) Attributable to Noncontrolling Interests | 909 | 819 | 2,398 | 457 |
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated | $ 23,638 | $ 47,464 | $ 124,468 | $ 133,752 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | COMMON STOCK | ADDITIONAL PAID-IN CAPITAL | (DISTRIBUTIONS IN EXCESS OF EARNINGS) EARNINGS IN EXCESS OF DISTRIBUTIONS | ACCUMULATED OTHER COMPREHENSIVE ITEMS, NET | NONCONTROLLING INTERESTS | REDEEMABLE NONCONTROLLING INTERESTS |
Beginning of Period at Dec. 31, 2021 | $ 857,068 | $ 2,898 | $ 4,412,553 | $ (3,221,152) | $ (338,347) | $ 1,116 | |
Beginning balance (in shares) at Dec. 31, 2021 | 289,757,061 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance and net settlement of shares under employee stock purchase plan and option plans and stock-based compensation | 22,960 | $ 9 | 22,951 | ||||
Issuance and net settlement of shares under employee stock purchase plan and option plans and stock-based compensation (in shares) | 922,897 | ||||||
Changes in equity related to noncontrolling interests | 2,626 | (1,009) | 3,635 | $ 1,009 | |||
Parent cash dividends declared | (362,220) | (362,220) | |||||
Other comprehensive income (loss) | (108,787) | (108,628) | (159) | ||||
Net Income (Loss) | 242,614 | 242,380 | 234 | ||||
Noncontrolling interests equity contributions and related costs | (2,486) | (2,486) | |||||
Noncontrolling interests dividends | (1,392) | ||||||
End of period at Jun. 30, 2022 | 651,775 | $ 2,907 | 4,432,009 | (3,340,992) | (446,975) | 4,826 | |
Ending balance (in shares) at Jun. 30, 2022 | 290,679,958 | ||||||
Beginning of redeemable noncontrolling interest at Dec. 31, 2021 | 72,411 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Other comprehensive income (loss) | (569) | ||||||
Net income (loss) | 951 | ||||||
Noncontrolling interests equity contributions and related costs | 21,547 | ||||||
Noncontrolling interests dividends | (1,392) | ||||||
Ending of redeemable noncontrolling interest at Jun. 30, 2022 | 93,957 | ||||||
Beginning of Period at Mar. 31, 2022 | 758,771 | $ 2,906 | 4,409,051 | (3,359,876) | (294,358) | 1,048 | |
Beginning balance (in shares) at Mar. 31, 2022 | 290,550,440 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance and net settlement of shares under employee stock purchase plan and option plans and stock-based compensation | 24,462 | $ 1 | 24,461 | ||||
Issuance and net settlement of shares under employee stock purchase plan and option plans and stock-based compensation (in shares) | 129,518 | ||||||
Changes in equity related to noncontrolling interests | 4,618 | 983 | 3,635 | (983) | |||
Parent cash dividends declared | (181,197) | (181,197) | |||||
Other comprehensive income (loss) | (152,708) | (152,617) | (91) | ||||
Net Income (Loss) | 200,315 | 200,081 | 234 | ||||
Noncontrolling interests equity contributions and related costs | (2,486) | (2,486) | |||||
Noncontrolling interests dividends | (711) | ||||||
End of period at Jun. 30, 2022 | 651,775 | $ 2,907 | 4,432,009 | (3,340,992) | (446,975) | 4,826 | |
Ending balance (in shares) at Jun. 30, 2022 | 290,679,958 | ||||||
Beginning of redeemable noncontrolling interest at Mar. 31, 2022 | 73,428 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Other comprehensive income (loss) | (867) | ||||||
Net income (loss) | 1,543 | ||||||
Noncontrolling interests equity contributions and related costs | 21,547 | ||||||
Noncontrolling interests dividends | (711) | ||||||
Ending of redeemable noncontrolling interest at Jun. 30, 2022 | 93,957 | ||||||
Beginning of Period at Dec. 31, 2022 | $ 636,793 | $ 2,908 | 4,468,035 | (3,392,272) | (442,003) | 125 | |
Beginning balance (in shares) at Dec. 31, 2022 | 290,830,296 | 290,830,296 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance and net settlement of shares under employee stock purchase plan and option plans and stock-based compensation | $ 19,100 | $ 10 | 19,090 | ||||
Issuance and net settlement of shares under employee stock purchase plan and option plans and stock-based compensation (in shares) | 994,662 | ||||||
Changes in equity related to noncontrolling interests | 1,367 | 1,367 | (1,367) | ||||
Parent cash dividends declared | (365,385) | (365,385) | |||||
Other comprehensive income (loss) | 59,759 | 59,759 | 0 | ||||
Net Income (Loss) | 64,709 | 64,709 | |||||
Noncontrolling interests dividends | (2,032) | ||||||
End of period at Jun. 30, 2023 | $ 416,343 | $ 2,918 | 4,488,492 | (3,692,948) | (382,244) | 125 | |
Ending balance (in shares) at Jun. 30, 2023 | 291,824,958 | 291,824,958 | |||||
Beginning of redeemable noncontrolling interest at Dec. 31, 2022 | $ 95,160 | 95,160 | |||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Other comprehensive income (loss) | 429 | ||||||
Net income (loss) | 1,969 | ||||||
Noncontrolling interests equity contributions and related costs | 9,900 | ||||||
Noncontrolling interests dividends | (2,032) | ||||||
Ending of redeemable noncontrolling interest at Jun. 30, 2023 | 104,059 | 104,059 | |||||
Beginning of Period at Mar. 31, 2023 | 545,589 | $ 2,916 | 4,459,265 | (3,510,949) | (405,768) | 125 | |
Beginning balance (in shares) at Mar. 31, 2023 | 291,584,999 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance and net settlement of shares under employee stock purchase plan and option plans and stock-based compensation | 27,862 | $ 2 | 27,860 | ||||
Issuance and net settlement of shares under employee stock purchase plan and option plans and stock-based compensation (in shares) | 239,959 | ||||||
Changes in equity related to noncontrolling interests | 1,367 | 1,367 | (1,367) | ||||
Parent cash dividends declared | (182,113) | (182,113) | |||||
Other comprehensive income (loss) | 23,524 | 23,524 | |||||
Net Income (Loss) | 114 | 114 | |||||
Noncontrolling interests dividends | (1,013) | ||||||
End of period at Jun. 30, 2023 | $ 416,343 | $ 2,918 | $ 4,488,492 | $ (3,692,948) | $ (382,244) | $ 125 | |
Ending balance (in shares) at Jun. 30, 2023 | 291,824,958 | 291,824,958 | |||||
Beginning of redeemable noncontrolling interest at Mar. 31, 2023 | 95,630 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Other comprehensive income (loss) | (120) | ||||||
Net income (loss) | 1,029 | ||||||
Noncontrolling interests equity contributions and related costs | 9,900 | ||||||
Noncontrolling interests dividends | (1,013) | ||||||
Ending of redeemable noncontrolling interest at Jun. 30, 2023 | $ 104,059 | $ 104,059 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash Flows from Operating Activities: | ||
Net income (loss) | $ 66,678 | $ 243,565 |
Adjustments to reconcile net income (loss) to cash flows from operating activities: | ||
Depreciation | 254,395 | 236,496 |
Amortization (includes amortization of deferred financing costs and discounts of $8,095 and $9,064 for the six months ended June 30, 2023 and 2022, respectively) | 131,161 | 134,437 |
Revenue reduction associated with amortization of customer inducements and above- and below-market leases | 3,491 | 3,681 |
Stock-based compensation expense | 34,882 | 31,597 |
Provision (benefit) for deferred income taxes | 2,799 | (18,491) |
Loss on early extinguishment of debt | 0 | 671 |
(Gain) loss on disposal/write-down of property, plant and equipment, net | (14,566) | (51,954) |
Loss (gain) on divestments and deconsolidations | 0 | 105,825 |
Loss (gain) associated with the Clutter transactions | 38,000 | |
Loss (gain) on divestments and deconsolidations | (35,821) | |
Foreign currency transactions and other, net | 69,183 | (58,821) |
(Increase) decrease in assets | (31,071) | (194,756) |
(Decrease) increase in liabilities | (108,858) | (50,505) |
Cash Flows from Operating Activities | 446,094 | 345,924 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (600,758) | (330,220) |
Cash paid for acquisitions, net of cash acquired | (21,465) | (718,657) |
Acquisition of customer relationships | 0 | (148) |
Customer inducements | (2,630) | (4,624) |
Contract fulfillment costs | (39,989) | (33,951) |
Investments in joint ventures and other investments | (15,830) | 0 |
Proceeds from sales of property and equipment and other, net | 35,390 | 96,497 |
Cash Flows from Investing Activities | (645,282) | (991,103) |
Cash Flows from Financing Activities: | ||
Repayment of revolving credit facility, term loan facilities and other debt | (10,087,033) | (5,351,720) |
Proceeds from revolving credit facility, term loan facilities and other debt | 9,683,880 | 6,255,829 |
Net proceeds from sale of senior note | 990,000 | 0 |
Debt financing and equity contribution from noncontrolling interests | 9,900 | 21,547 |
Debt repayment and equity distribution to noncontrolling interests | (2,032) | (1,392) |
Parent cash dividends | (367,060) | (364,223) |
Net (payments) proceeds associated with employee stock-based awards | (15,782) | (8,636) |
Other, net | (2,046) | (9,405) |
Cash Flows from Financing Activities | 209,827 | 542,000 |
Effect of Exchange Rates on Cash and Cash Equivalents | (2,943) | (7,903) |
Increase (decrease) in Cash and Cash Equivalents | 7,696 | (111,082) |
Cash and Cash Equivalents, Beginning of Period | 141,797 | 255,828 |
Cash and Cash Equivalents, End of Period | 149,493 | 144,746 |
Supplemental Information: | ||
Cash Paid for Interest | 270,146 | 227,633 |
Cash Paid for Income Taxes, Net | 46,502 | 57,135 |
Non-Cash Investing and Financing Activities: | ||
Financing Leases and Other | 61,085 | 12,878 |
Accrued Capital Expenditures | 192,197 | 98,210 |
Deferred Purchase Obligations and Other Deferred Payments | 9,290 | 276,017 |
Dividends Payable | $ 192,597 | $ 188,556 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Cash Flows [Abstract] | ||
Deferred financing costs and discount included in amortization | $ 8,095 | $ 9,064 |
General
General | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | GENERAL The unaudited condensed consolidated financial statements of Iron Mountain Incorporated, a Delaware corporation ("IMI"), and its subsidiaries ("we" or "us"), have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the "SEC"). Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to those rules and regulations, but we believe that the disclosures included herein are adequate to make the information presented not misleading. Certain prior year financial statement amounts have been reclassified to conform to the current year presentation. The interim condensed consolidated financial statements are presented herein and, in the opinion of management, reflect all adjustments of a normal recurring nature necessary for a fair presentation. Interim results are not necessarily indicative of results for a full year. The Condensed Consolidated Financial Statements and Notes thereto, which are included herein, should be read in conjunction with the Consolidated Financial Statements and Notes thereto for the year ended December 31, 2022 included in our Annual Report on Form 10-K filed with the SEC on February 23, 2023 (our "Annual Report"). In September 2022, we announced a global program designed to accelerate the growth of our business ("Project Matterhorn"). See Note 11. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash on hand and cash invested in highly liquid short-term securities, which have remaining maturities at the date of purchase of less than 90 days. Cash and cash equivalents are carried at cost, which approximates fair value. B. ACCOUNTS RECEIVABLE We maintain an allowance for doubtful accounts and a credit memo reserve for estimated losses resulting from the potential inability of our customers to make required payments and potential disputes regarding billing and service issues. The rollforward of the allowance for doubtful accounts and credit memo reserves for the six months ended June 30, 2023 is as follows: Balance as of December 31, 2022 $ 54,143 Credit memos charged to revenue 46,222 Allowance for bad debts charged to expense 16,172 Deductions and other (1) (51,320) Balance as of June 30, 2023 $ 65,217 (1) Primarily consists of the issuance of credit memos, the write-off of accounts receivable and the impact associated with currency translation adjustments. C. LEASES We lease facilities for certain warehouses, data centers and office space. We also have land leases, including those on which certain facilities are located. Operating and financing lease right-of-use assets and lease liabilities as of June 30, 2023 and December 31, 2022 are as follows: DESCRIPTION JUNE 30, 2023 DECEMBER 31, 2022 Assets: Operating lease right-of-use assets $ 2,671,371 $ 2,583,704 Financing lease right-of-use assets, net of accumulated depreciation (1) 255,015 251,690 Liabilities: Current Operating lease liabilities $ 303,615 $ 288,738 Financing lease liabilities (1) 49,148 43,857 Long-term Operating lease liabilities $ 2,513,975 $ 2,429,167 Financing lease liabilities (1) 297,190 289,048 (1) Financing lease right-of-use assets, current financing lease liabilities and long-term financing lease liabilities are included within Property, Plant and Equipment, Net, Current portion of long-term debt and Long-term Debt, net of current portion, respectively, within our Condensed Consolidated Balance Sheets. The components of the lease expense for the three and six months ended June 30, 2023 and 2022 are as follows: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, DESCRIPTION 2023 2022 2023 2022 Operating lease cost (1) $ 161,241 $ 139,863 $ 317,114 $ 283,393 Financing lease cost: Depreciation of financing lease right-of-use assets $ 10,202 $ 10,578 $ 20,210 $ 22,032 Interest expense for financing lease liabilities 4,416 4,359 8,757 9,037 (1) Operating lease cost, the majority of which is included in Cost of sales, includes variable lease costs of $34,418 and $65,998 for the three and six months ended June 30, 2023, respectively, and $28,788 and $59,296 for the three and six months ended June 30, 2022, respectively. Other information: Supplemental cash flow information relating to our leases for the six months ended June 30, 2023 and 2022 is as follows: SIX MONTHS ENDED JUNE 30, CASH PAID FOR AMOUNTS INCLUDED IN MEASUREMENT OF LEASE LIABILITIES: 2023 2022 Operating cash flows used in operating leases $ 220,764 $ 200,958 Operating cash flows used in financing leases (interest) 8,757 9,037 Financing cash flows used in financing leases 22,010 20,084 NON-CASH ITEMS: Operating lease modifications and reassessments $ 44,779 $ 67,699 New operating leases (including acquisitions and sale-leaseback transactions) 163,326 382,890 In addition to the leases signed but not yet commenced that were disclosed in Note 2.j. to Notes to Consolidated Financial Statements included in our Annual Report, we entered into an operating lease in March 2023 that is expected to commence in July 2024, with an initial lease term of 25 years. The total undiscounted minimum lease payments for this lease are approximately $170,100. D. GOODWILL Our reporting units as of December 31, 2022 are described in detail in Note 2.l. to Notes to Consolidated Financial Statements included in our Annual Report. The changes in the carrying value of goodwill attributable to each reportable segment for the six months ended June 30, 2023 are as follows: GLOBAL RIM BUSINESS GLOBAL DATA CENTER BUSINESS CORPORATE AND OTHER TOTAL CONSOLIDATED Goodwill balance, net of accumulated amortization as of December 31, 2022 $ 3,852,946 $ 418,502 $ 611,286 $ 4,882,734 Non-tax deductible goodwill acquired during the period 22,876 — 383 23,259 Fair value and other adjustments (80) — 2,333 2,253 Currency translation adjustments 17,169 2,153 577 19,899 Goodwill balance, net of accumulated amortization as of June 30, 2023 $ 3,892,911 $ 420,655 $ 614,579 $ 4,928,145 Accumulated goodwill impairment balance as of June 30, 2023 $ 132,409 $ — $ 26,011 $ 158,420 E. FAIR VALUE MEASUREMENTS The assets and liabilities carried at fair value measured on a recurring basis as of June 30, 2023 and December 31, 2022 are as follows: FAIR VALUE MEASUREMENTS AT JUNE 30, 2023 USING DESCRIPTION TOTAL CARRYING QUOTED PRICES IN SIGNIFICANT OTHER SIGNIFICANT Money Market Funds $ 11,761 $ — $ 11,761 $ — Time Deposits 1,127 — 1,127 — Trading Securities 10,340 10,322 18 — Derivative Assets 28,286 — 28,286 — Derivative Liabilities 4,540 — 4,540 — Deferred Purchase Obligations (1) 201,190 — — 201,190 FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2022 USING DESCRIPTION TOTAL CARRYING QUOTED PRICES IN SIGNIFICANT OTHER SIGNIFICANT Money Market Funds $ 11,311 $ — $ 11,311 $ — Time Deposits 1,102 — 1,102 — Trading Securities 9,462 9,426 36 — Derivative Assets 51,396 — 51,396 — Derivative Liabilities 489 — 489 — Deferred Purchase Obligations (1) 193,033 — — 193,033 (1) Primarily relates to the fair value of the Deferred Purchase Obligation (as defined in Note 3 to Notes to Consolidated Financial Statements included in our Annual Report) associated with the ITRenew Transaction (as defined below in Note 3), which was determined utilizing a Monte-Carlo model and takes into account our forecasted projections as it relates to the underlying performance of the business. The Monte-Carlo simulation model incorporates assumptions as to expected gross profits over the applicable achievement period, including adjustments for the volatility of timing and amount of the associated revenue and costs, as well as discount rates that account for the risk of the underlying arrangement and overall market risks. Any material change to these assumptions may result in a significantly higher or lower fair value of the Deferred Purchase Obligation. The change in value of the Deferred Purchase Obligation during the three and six months ended June 30, 2023 was driven by the accretion of the obligation to present value. There were no material items that were measured at fair value on a non-recurring basis at June 30, 2023 and December 31, 2022 other than (i) those disclosed in Note 2.p. to Notes to Consolidated Financial Statements included in our Annual Report and (ii) assets acquired and liabilities assumed through our acquisitions that occurred during the six months ended June 30, 2023, all of which are based on Level 3 inputs. F. ACCUMULATED OTHER COMPREHENSIVE ITEMS, NET The changes in Accumulated other comprehensive items, net for the three and six months ended June 30, 2023 and 2022 are as follows: THREE MONTHS ENDED JUNE 30, 2023 THREE MONTHS ENDED JUNE 30, 2022 FOREIGN DERIVATIVE FINANCIAL TOTAL FOREIGN DERIVATIVE FINANCIAL TOTAL Beginning of Period $ (414,832) $ 9,064 $ (405,768) $ (313,801) $ 19,443 $ (294,358) Other comprehensive income (loss): Foreign currency translation and other adjustments 18,155 — 18,155 (186,828) — (186,828) Change in fair value of derivative instruments — 7,896 7,896 — 34,211 34,211 Reclassifications from accumulated other comprehensive items, net — (2,527) (2,527) — — — Total other comprehensive income (loss) 18,155 5,369 23,524 (186,828) 34,211 (152,617) End of Period $ (396,677) $ 14,433 $ (382,244) $ (500,629) $ 53,654 $ (446,975) SIX MONTHS ENDED JUNE 30, 2023 SIX MONTHS ENDED JUNE 30, 2022 FOREIGN DERIVATIVE FINANCIAL TOTAL FOREIGN DERIVATIVE FINANCIAL TOTAL Beginning of Period $ (454,509) $ 12,506 $ (442,003) $ (341,024) $ 2,677 $ (338,347) Other comprehensive income (loss): Foreign currency translation and other adjustments 57,832 — 57,832 (159,605) — (159,605) Change in fair value of derivative instruments — 4,454 4,454 — 50,977 50,977 Reclassifications from accumulated other comprehensive items, net — (2,527) (2,527) — — — Total other comprehensive income (loss) 57,832 1,927 59,759 (159,605) 50,977 (108,628) End of Period $ (396,677) $ 14,433 $ (382,244) $ (500,629) $ 53,654 $ (446,975) G. REVENUES The costs associated with the initial movement of customer records into physical storage and certain commissions are considered costs to obtain or fulfill customer contracts (collectively, "Contract Fulfillment Costs"). Contract Fulfillment Costs as of June 30, 2023 and December 31, 2022 are as follows: JUNE 30, 2023 DECEMBER 31, 2022 GROSS ACCUMULATED NET GROSS ACCUMULATED NET Intake Costs asset $ 75,428 $ (47,919) $ 27,509 $ 68,345 $ (42,132) $ 26,213 Commissions asset 148,003 (66,431) 81,572 133,145 (58,949) 74,196 Deferred revenue liabilities are reflected in our Condensed Consolidated Balance Sheets as follows: DESCRIPTION LOCATION IN BALANCE SHEET JUNE 30, 2023 DECEMBER 31, 2022 Deferred revenue - Current Deferred revenue $ 336,068 $ 328,910 Deferred revenue - Long-term Other Long-term Liabilities 22,343 32,960 DATA CENTER LESSOR CONSIDERATIONS Our Global Data Center Business features storage rental provided to customers at contractually specified rates over a fixed contractual period, which are accounted for in accordance with Accounting Standards Codification ("ASC") 842, Leases . Storage rental revenue, including revenue associated with power and connectivity, associated with our Global Data Center Business for the three and six months ended June 30, 2023 and 2022 is as follows: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2023 2022 2023 2022 Storage rental revenue (1) $ 110,990 $ 89,768 $ 218,425 $ 177,219 H. STOCK-BASED COMPENSATION Our stock-based compensation expense includes the cost of stock options, restricted stock units ("RSUs") and performance units ("PUs") (together, the "Employee Stock-Based Awards"). STOCK-BASED COMPENSATION EXPENSE Stock-based compensation expense for the Employee Stock-Based Awards for the three and six months ended June 30, 2023 and 2022 is as follows: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2023 2022 2023 2022 Stock-based compensation expense $ 22,373 $ 20,256 $ 34,882 $ 31,597 As of June 30, 2023, unrecognized compensation cost related to the unvested portion of our Employee Stock-Based Awards is $87,880. I. ACQUISITION AND INTEGRATION COSTS Acquisition and integration costs represent operating expenditures directly associated with the closing and integration activities of our business acquisitions that have closed, or are highly probable of closing, and include (i) advisory, legal and professional fees to complete business acquisitions and (ii) costs to integrate acquired businesses into our existing operations, including move, severance and system integration costs (collectively, "Acquisition and Integration Costs"). Acquisition and Integration Costs for the three and six months ended June 30, 2023 and 2022 are as follows: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2023 2022 2023 2022 Acquisition and Integration Costs $ 1,511 $ 16,878 $ 3,106 $ 32,539 J. (GAIN) LOSS ON DISPOSAL/WRITE-DOWN OF PROPERTY, PLANT AND EQUIPMENT, NET (Gain) loss on disposal/write-down of property, plant and equipment, net for the three and six months ended June 30, 2023 and 2022 is as follows: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2023 2022 (2) 2023 (1) 2022 (2) (Gain) Loss on disposal/write-down of property, plant and equipment, net (3) $ (1,505) $ (51,249) $ (14,566) $ (51,954) (1) The gains for the six months ended June 30, 2023 primarily consist of a gain of approximately $18,500 associated with a sale-leaseback transaction of a facility in Singapore during the first quarter of 2023. (2) The gains for the three and six months ended June 30, 2022 primarily consist of gains of approximately $49,000 associated with sale and sale-leaseback transactions of 11 facilities and parcels of land in the United States. (3) The gains recognized during both 2023 and 2022 are the result of our program to monetize a small portion of our industrial assets through sale and sale-leaseback transactions. The terms for these leases are consistent with the terms of our lease portfolio, which are disclosed in detail in Note 2.j. to Notes to Consolidated Financial Statements included in our Annual Report. K. OTHER EXPENSE (INCOME), NET Other expense (income), net for the three and six months ended June 30, 2023 and 2022 consists of the following: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, DESCRIPTION 2023 2022 2023 2022 Foreign currency transaction losses (gains), net (1)(2) $ 15,063 $ (55,039) $ 29,487 $ (68,240) Debt extinguishment expense — — — 671 Other, net (3)(4) 47,887 13,822 54,663 82,253 Other Expense (Income), Net $ 62,950 $ (41,217) $ 84,150 $ 14,684 (1) The losses for the three and six months ended June 30, 2023 primarily consist of the impact of changes in the exchange rate of the British pound sterling against the United States dollar on our intercompany balances with and between certain of our subsidiaries. (2) The gains for the three and six months ended June 30, 2022 primarily consist of the impact of changes in the exchange rate of the Euro and the British pound sterling against the United States dollar on our intercompany balances with and between certain of our subsidiaries. (3) Other, net for the six months ended June 30, 2023 consists primarily of a loss of approximately $38,000 associated with the remeasurement to fair value of our previously held equity interest in the Clutter JV (as defined and discussed in Note 4) as well as losses on our equity method investments and the change in value of the Deferred Purchase Obligation. (4) Other, net for the six months ended June 30, 2022 consists primarily of (i) a loss of approximately $105,800 associated with the OSG Deconsolidation (as defined in Note 4 to Notes to Consolidated Financial Statements included in our Annual Report), partially offset by (ii) a gain of approximately $35,800 associated with the Clutter Transaction (as defined in Note 5 to Notes to Consolidated Financial Statements included in our Annual Report). L. INCOME TAXES We provide for income taxes during interim periods based on our estimate of the effective tax rate for the year. Our effective tax rates for the three and six months ended June 30, 2023 and 2022 are as follows: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2023 (1) 2022 (2) 2023 (1) 2022 (2) Effective Tax Rate 78.8 % 8.2 % 24.0 % 10.4 % (1) The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three and six months ended June 30, 2023 were (i) the loss of approximately $38,000 recorded in Other, net a component of Other expense (income), net during the second quarter of 2023 to reflect the remeasurement of our previously held equity interest in the Clutter JV to fair value, for which there was no tax impact, (ii) the benefits derived from the dividends paid deduction and (iii) the differences in the tax rates to which our foreign earnings are subject. (2) The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three and six months ended June 30, 2022 were the benefits derived from the dividends paid deduction and the differences in the tax rates to which our foreign earnings are subject. In addition, there were gains and losses recorded in Other expense (income), net and Gain (loss) on disposal/write-down of property, plant and equipment net, during the period for which there was an insignificant tax impact. During the first quarter of 2022, there was also a release of valuation allowances on deferred tax assets of our U.S. taxable REIT subsidiaries of approximately $9,900 as a result of our acquisition of Intercept Parent, Inc. ("ITRenew"). M. INCOME (LOSS) PER SHARE—BASIC AND DILUTED The calculations of basic and diluted income (loss) per share for the three and six months ended June 30, 2023 and 2022 are as follows: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2023 2022 2023 2022 Net Income (Loss) $ 1,143 $ 201,858 $ 66,678 $ 243,565 Less: Net Income (Loss) Attributable to Noncontrolling Interests 1,029 1,777 1,969 1,185 Net Income (Loss) Attributable to Iron Mountain Incorporated (utilized in numerator of Earnings Per Share calculation) $ 114 $ 200,081 $ 64,709 $ 242,380 Weighted-average shares—basic 291,825,000 290,756,000 291,633,000 290,542,000 Effect of dilutive potential stock options 1,322,000 1,249,262 1,269,000 1,122,444 Effect of dilutive potential RSUs and PUs 380,000 481,972 386,000 501,975 Weighted-average shares—diluted 293,527,000 292,487,234 293,288,000 292,166,419 Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated: Basic $ 0.00 $ 0.69 $ 0.22 $ 0.83 Diluted $ 0.00 $ 0.68 $ 0.22 $ 0.83 Antidilutive stock options, RSUs and PUs excluded from the calculation 157,132 234,085 151,431 494,833 N. RECENT ACCOUNTING PRONOUNCEMENTS In December 2021, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") No. 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ("ASU 2021-08"). ASU 2021-08 requires that an entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers, and for the related revenue contracts in accordance with ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as if it had originated the contracts. We adopted ASU 2021-08 on January 1, 2023 on a prospective basis, and there was no material impact on our condensed consolidated financial statements. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | CLUTTER On June 29, 2023, in order to further expand our on-demand consumer storage business, we acquired 100% of the outstanding shares of Clutter Intermediate, Inc. and control of all assets of the Clutter JV (collectively, "Clutter") for total consideration of $59,100 (the “Clutter Acquisition”). During the third quarter of 2023, we anticipate offering up to 15% equity interest in Clutter to certain former stakeholders of the Clutter JV. PRELIMINARY PURCHASE PRICE ALLOCATION A summary of the cumulative consideration paid and the preliminary allocation of the purchase price paid for all of our acquisitions closed during the six months ended June 30, 2023 is as follows: SIX MONTHS ENDED JUNE 30, 2023 Cash Paid (gross of cash acquired) (1) $ 21,215 Deferred Purchase Obligation, Purchase Price Holdbacks and Other 9,290 Fair Value of Previously Held Equity Interest 9,000 Settlement of Pre-Existing Relationships 20,122 Total Consideration 59,627 Fair Value of Identifiable Assets Acquired 56,248 Fair Value of Identifiable Liabilities Assumed (19,880) Total Fair Value of Identifiable Net Assets Acquired 36,368 Goodwill Initially Recorded (2) $ 23,259 (1) Cash paid for acquisitions, net in our Condensed Consolidated Statement of Cash Flows includes (i) cash acquired of $1,980 relating to acquisitions completed during the six months ended June 30, 2023 and (ii) contingent and other payments of $2,230 for the six months ended June 30, 2023 relating to acquisitions completed prior to January 1, 2023. (2) Goodwill is primarily attributable to the assembled workforce, expanded market opportunities and costs and other operating synergies anticipated upon the integration of the operations of us and the acquired businesses. The preliminary purchase price allocations that are not finalized as of June 30, 2023 relate to the final assessment of the fair values of property, plant and equipment and intangible assets (primarily the customer relationship intangible asset) associated with the acquisitions we closed during the six months ended June 30, 2023. Any adjustments to our estimates of purchase price allocations will be made in the periods in which the adjustments are determined, but no later than the one year measurement period, and the cumulative effect of such adjustments will be calculated as if the adjustments had been completed as of the applicable acquisition date. Adjustments recorded during the six months ended June 30, 2023 were not material to our results from operations. ITRENEW PRO FORMA FINANCIAL INFORMATION On January 25, 2022, in order to expand our asset lifecycle management operations, we acquired an approximately 80% interest in ITRenew at an agreed upon purchase price of $725,000, subject to certain working capital adjustments at, and subsequent to, the closing (the "ITRenew Transaction"). The unaudited consolidated pro forma financial information (the "Pro Forma Financial Information") below summarizes the combined results of Iron Mountain and ITRenew on a pro forma basis as if the ITRenew Transaction had occurred on January 1, 2021. The Pro Forma Financial Information is presented for informational purposes and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place on January 1, 2021. The Pro Forma Financial Information, for the periods presented, includes purchase accounting adjustments (including amortization of acquired customer and supplier intangible assets and depreciation of acquired property, plant and equipment) and related tax effects. We and ITRenew collectively incurred $59,370 of operating expenditures to complete the ITRenew Transaction (including advisory and professional fees). These operating expenditures have been reflected within the results of operations in the Pro Forma Financial Information as if they were incurred on January 1, 2021. THREE MONTHS ENDED JUNE 30, 2022 SIX MONTHS ENDED JUNE 30, 2022 Total Revenues $ 1,289,534 $ 2,555,554 Income from Continuing Operations $ 201,858 $ 243,696 |
Investments
Investments | 6 Months Ended |
Jun. 30, 2023 | |
Investments, All Other Investments [Abstract] | |
Investments | 4. INVESTMENTS CLUTTER JOINT VENTURE In February 2022, the joint venture formed by MakeSpace Labs, Inc. and us (the "MakeSpace JV") entered into an agreement with Clutter, Inc. pursuant to which the equityholders of the MakeSpace JV contributed their ownership interests in the MakeSpace JV, and Clutter, Inc.’s shareholders contributed their ownership interests in Clutter, Inc., to create a newly formed venture (the "Clutter JV"). In exchange for our 49.99% interest in the MakeSpace JV, we received an approximate 27% interest in the Clutter JV (the "Clutter Transaction"). As a result of the Clutter Transaction, we recognized a gain related to our contributed interest in the MakeSpace JV of approximately $35,800, which was recorded to Other, net, a component of Other expense (income), net, during the first quarter of 2022. On June 29, 2023, we completed the Clutter Acquisition. In connection with the Clutter Acquisition, our previously held approximately 27% interest in the Clutter JV was remeasured to fair value at the closing date of the Clutter Acquisition. As a result, we recognized a loss of approximately $38,000 to Other, net, a component of Other expense (income), net, during the second quarter of 2023. WEB WERKS JOINT VENTURE In April 2021, we closed on an agreement to form a joint venture (the "Web Werks JV") with the shareholders of Web Werks India Private Limited, a colocation data center provider in India. Through December 31, 2022, we made two investments totaling approximately 7,500,000 Indian rupees (or approximately $96,200, based upon the exchange rates between the United States dollar and Indian rupee on the closing date of each investment) in exchange for a noncontrolling interest in the form of convertible preference shares in the Web Werks JV. On July 7, 2023, we made our final contractual investment in the Web Werks JV of approximately 3,750,000 Indian rupees (or approximately $45,300, based upon the exchange rate between the United States dollar and Indian rupee on the closing date of this investment). After the final contractual payment, our interest in the Web Werks JV increased to 63.39% and we assumed control of its board of directors. For financial reporting periods beginning after July 7, 2023, the Web Werks JV will be consolidated within our Global Data Center Business segment. JOINT VENTURE SUMMARY The following joint ventures are accounted for as equity method investments and are presented as a component of Other within Other assets, net in our Condensed Consolidated Balance Sheets. The carrying values and equity interests in our joint ventures at June 30, 2023 and December 31, 2022 are as follows: JUNE 30, 2023 DECEMBER 31, 2022 CARRYING VALUE EQUITY INTEREST CARRYING VALUE EQUITY INTEREST Web Werks JV $ 98,650 53.58 % $ 98,278 53.58 % Joint venture with AGC Equity Partners (the "Frankfurt JV") 59,394 20.00 % 37,194 20.00 % Clutter JV — — % 54,172 26.73 % |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Derivative instruments we are party to include: (i) interest rate swap agreements (which are designated as cash flow hedges) and (ii) cross-currency swap agreements (which are designated as net investment hedges). INTEREST RATE SWAP AGREEMENTS DESIGNATED AS CASH FLOW HEDGES In July 2019, we entered into forward-starting interest rate swap agreements to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness. These forward-starting interest rate swap agreements commenced in March 2022 with a total notional amount of $350,000 and provided variable rate interest payments associated with the notional amount of each interest rate swap, based upon one-month London Interbank Offered Rate ("LIBOR"), in exchange for the payment of fixed interest rates as specified in the respective interest rate swap agreements. In April 2023, we terminated these agreements in anticipation of the discontinuance of the LIBOR reference rate on June 30, 2023. The terminated swap agreements had associated unrealized gains at the termination date of approximately $10,100. These gains are included in Accumulated other comprehensive items, net and will be reclassified into earnings as reductions to interest expense from the date of termination through March 2024, the original maturity date of the swaps. In April 2023, we entered into interest rate swap agreements to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness. Under these interest rate swap agreements, we receive variable rate interest payments associated with the notional amount of each interest rate swap, based upon one-month Secured Overnight Financing Rate, in exchange for the payment of fixed interest rates as specified in the interest rate swap agreements. As of June 30, 2023, we have $350,000 in notional value outstanding associated with these interest rate swap agreements, which expire in February 2026. In November 2022, we entered into a forward-starting interest rate swap agreement to limit our exposure to changes in interest rates on future borrowings under our Virginia Credit Agreement (as defined in Note 7 to Notes to Consolidated Financial Statements included in our Annual Report). This forward-starting interest rate swap agreement commenced in July 2023 and expires in October 2025. As of both June 30, 2023 and December 31, 2022, we have $4,800 in notional value outstanding on this forward-starting interest rate swap agreement. We have designated each of the interest rate swap agreements described above as cash flow hedges. These interest rate swap agreements are marked to market at the end of each reporting period, representing the fair values of the interest rate swap agreements, and any changes in fair value are recognized as a component of Accumulated other comprehensive items, net. Unrealized gains are recognized as assets, while unrealized losses are recognized as liabilities. CROSS-CURRENCY SWAP AGREEMENTS DESIGNATED AS A HEDGE OF NET INVESTMENT We utilize cross-currency interest rate swaps to hedge the variability of exchange rate impacts between the United States dollar and the Euro. As of both June 30, 2023 and December 31, 2022, we have approximately $469,200 in notional value outstanding on cross-currency interest rate swaps, with maturity dates ranging from August 2023 through February 2026. We have designated these cross-currency swap agreements as hedges of net investments in certain of our Euro denominated subsidiaries and they require an exchange of the notional amounts at maturity. These cross-currency swap agreements are marked to market at the end of each reporting period, representing the fair values of the cross-currency swap agreements, and any changes in fair value are recognized as a component of Accumulated other comprehensive items, net. Unrealized gains are recognized as assets while unrealized losses are recognized as liabilities. The excluded component of our cross-currency swap agreements is recorded in Accumulated other comprehensive items, net and amortized to interest expense on a straight-line basis. The fair value of derivative instruments recognized in our Condensed Consolidated Balance Sheets at June 30, 2023 and December 31, 2022, by derivative instrument, are as follows: JUNE 30, 2023 DECEMBER 31, 2022 DERIVATIVE INSTRUMENTS (1) Assets Liabilities Assets Liabilities Cash Flow Hedges (2) Interest rate swap agreements $ 6,852 $ — $ 12,995 $ 489 Net Investment Hedges (3) Cross-currency swap agreements 21,434 4,540 38,401 — (1) Our derivative assets are included as a component of (i) Prepaid expenses and other or (ii) Other within Other assets, net and our derivative liabilities are included as a component of (i) Accrued expenses and other current liabilities or (ii) Other long-term liabilities in our Condensed Consolidated Balance Sheets. As of June 30, 2023, $1,459 is included within Prepaid expenses and other, $26,827 is included within Other assets and $4,540 is included within Accrued expense and other current liabilities. As of December 31, 2022, $2,606 is included within Prepaid expenses and other, $48,790 is included within Other assets and $489 is included within Other long-term liabilities. (2) As of June 30, 2023, cumulative net gains recorded within Accumulated other comprehensive items, net associated with our interest rate swap agreements are $14,433, which include $7,581 related to our terminated interest rate swap agreements. (3) As of June 30, 2023, cumulative net gains recorded within Accumulated other comprehensive items, net associated with our cross-currency swap agreements are $37,645, which include $20,751 related to the excluded component of our cross-currency swap agreements. Unrealized gains (losses) recognized in Accumulated other comprehensive income during the three and six months ended June 30, 2023 and 2022, by derivative instrument, are as follows: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, DERIVATIVE INSTRUMENTS 2023 2022 2023 2022 Cash Flow Hedges Interest rate swap agreements $ 7,896 $ 3,932 $ 4,454 $ 15,402 Net Investment Hedges Cross-currency swap agreements (12,704) 30,279 (21,507) 35,575 Cross-currency swap agreements (excluded component) 5,817 — 11,651 — Gains (losses) recognized in Net income during the three and six months ended June 30, 2023 and 2022, by derivative instrument, are as follows: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, DERIVATIVE INSTRUMENTS Location of gain (loss) 2023 2022 2023 2022 Cash Flow Hedges Interest rate swap agreements Interest expense $ 2,527 $ — $ 2,527 $ — Net Investment Hedges Cross-currency swap agreements (excluded component) Interest expense (5,817) — (11,651) — |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Long-term debt is as follows: JUNE 30, 2023 DECEMBER 31, 2022 DEBT (INCLUSIVE OF DISCOUNT) UNAMORTIZED DEFERRED FINANCING COSTS CARRYING AMOUNT FAIR VALUE DEBT (INCLUSIVE OF DISCOUNT) UNAMORTIZED DEFERRED FINANCING COSTS CARRYING AMOUNT FAIR VALUE Revolving Credit Facility (1) $ 679,500 $ (5,332) $ 674,168 $ 679,500 $ 1,072,200 $ (6,790) $ 1,065,410 $ 1,072,200 Term Loan A (1) 234,375 — 234,375 234,375 240,625 — 240,625 240,625 Term Loan B (1) 662,685 (3,122) 659,563 663,250 666,073 (3,747) 662,326 666,750 Australian Dollar Term Loan 196,333 (543) 195,790 198,005 202,641 (633) 202,008 204,623 UK Bilateral Revolving Credit Facility 177,277 — 177,277 177,277 169,361 — 169,361 169,361 3 7 / 8 % GBP Senior Notes due 2025 (the "GBP Notes") 506,506 (2,231) 504,275 472,474 483,888 (2,589) 481,299 445,206 4 7 / 8 % Senior Notes due 2027 (the "4 7 / 8 % Notes due 2027") (2) 1,000,000 (6,043) 993,957 932,500 1,000,000 (6,754) 993,246 917,500 5 1 / 4 % Senior Notes due 2028 (the "5 1 / 4 % Notes due 2028") (2) 825,000 (5,609) 819,391 770,344 825,000 (6,200) 818,800 754,875 5% Senior Notes due 2028 (the "5% Notes due 2028") (2) 500,000 (3,678) 496,322 461,250 500,000 (4,039) 495,961 450,000 7% Senior Notes due 2029 (the "7% Notes due 2029") (2) 1,000,000 (11,853) 988,147 992,500 — — — — 4 7 / 8 % Senior Notes due 2029 (the "4 7 / 8 % Notes due 2029") (2) 1,000,000 (9,041) 990,959 892,500 1,000,000 (9,764) 990,236 865,000 5 1 / 4 % Senior Notes due 2030 (the "5 1 / 4 % Notes due 2030") (2) 1,300,000 (10,655) 1,289,345 1,166,750 1,300,000 (11,407) 1,288,593 1,111,500 4 1 / 2 % Senior Notes due 2031 (the "4 1 / 2 % Notes") (2) 1,100,000 (9,539) 1,090,461 940,500 1,100,000 (10,161) 1,089,839 891,000 5% Senior Notes due 2032 (the "5% Notes due 2032") 750,000 (11,858) 738,142 645,000 750,000 (12,511) 737,489 622,500 5 5 / 8 % Senior Notes due 2032 (the "5 5 / 8 % Notes") (2) 600,000 (5,275) 594,725 535,500 600,000 (5,566) 594,434 520,500 Real Estate Mortgages, Financing Lease Liabilities and Other 457,724 (483) 457,241 457,724 425,777 (578) 425,199 425,777 Accounts Receivable Securitization Program 343,100 (426) 342,674 343,100 314,700 (531) 314,169 314,700 Total Long-term Debt 11,332,500 (85,688) 11,246,812 10,650,265 (81,270) 10,568,995 Less Current Portion (102,582) — (102,582) (87,546) — (87,546) Long-term Debt, Net of Current Portion $ 11,229,918 $ (85,688) $ 11,144,230 $ 10,562,719 $ (81,270) $ 10,481,449 (1) Collectively, the “Credit Agreement”. The Credit Agreement consists of a revolving credit facility (the “Revolving Credit Facility”), a term loan A (the “Term Loan A”) and a term loan B (the "Term Loan B"). The Revolving Credit Facility and the Term Loan A are scheduled to mature on March 18, 2027. The Term Loan B is scheduled to mature on January 2, 2026. The remaining amount available for borrowing under the Revolving Credit Facility as of June 30, 2023 was $1,566,061 (which amount represents the maximum availability as of such date). The weighted average interest rate in effect under the Revolving Credit Facility was 7.0% and 6.2% as of June 30, 2023 and December 31, 2022, respectively. (2) Collectively, the "Parent Notes". IMI is the direct obligor on the Parent Notes, which are fully and unconditionally guaranteed, on a senior basis, by IMI’s United States subsidiaries that represent the substantial majority of our United States operations (the "Note Guarantors"). These guarantees are joint and several obligations of the Note Guarantors. The remainder of our subsidiaries do not guarantee the Parent Notes. See Note 7 to Notes to Consolidated Financial Statements included in our Annual Report for additional information regarding our long-term debt, including the direct obligors of each of our debt instruments as well as information regarding the fair value of our debt instruments (including the levels of the fair value hierarchy used to determine the fair value of our debt instruments). The levels of the fair value hierarchy used to determine the fair value of our debt as of June 30, 2023 are consistent with the levels of the fair value hierarchy used to determine the fair value of our debt as of December 31, 2022 (which are disclosed in our Annual Report). MAY 2023 OFFERING On May 15, 2023, IMI completed a private offering of: SERIES OF NOTES AGGREGATE PRINCIPAL AMOUNT MATURITY DATE INTEREST PAYMENT DUE PAR CALL DATE (1) 7% Notes due 2029 $ 1,000,000 February 15, 2029 February 15 and August 15 August 15, 2025 (1) We may redeem the 7% Notes due 2029 at any time, at our option, in whole or in part. Prior to the par call date, we may redeem the 7% Notes due 2029 at the redemption price or make-whole premium specified in the indenture governing the 7% Notes due 2029, together with accrued and unpaid interest to, but excluding, the redemption date. On or after the par call date, we may redeem the 7% Notes due 2029 at a price equal to 100% of the principal amount being redeemed, together with accrued and unpaid interest to, but excluding, the redemption date. The 7% Notes due 2029 were issued at 100% of par. The total net proceeds of approximately $990,000 from the issuance of the 7% Notes due 2029, after deducting the initial purchasers' commissions, were used to repay a portion of the outstanding borrowings under our Revolving Credit Facility. ACCOUNTS RECEIVABLE SECURITIZATION PROGRAM On June 8, 2023, we amended the Accounts Receivable Securitization Program (as defined in Note 7 to Notes to Consolidated Financial Statements included in our Annual Report) to increase the maximum borrowing capacity from $325,000 to $360,000. All other material terms of the Accounts Receivable Securitization Program remain the same as what was disclosed in Note 7 to Notes to Consolidated Financial Statements included in our Annual Report. MAXIMUM AMOUNT $360,000 OUTSTANDING BORROWING $343,100 INTEREST RATE 6.2% As of June 30, 2023 LETTERS OF CREDIT As of June 30, 2023, we had outstanding letters of credit totaling $40,410, of which $4,439 reduce our borrowing capacity under the Revolving Credit Facility. The letters of credit expire at various dates between September 2023 and July 2025. DEBT COVENANTS The Credit Agreement, our bond indentures and other agreements governing our indebtedness contain certain restrictive financial and operating covenants, including covenants that restrict our ability to complete acquisitions, pay cash dividends, incur indebtedness, make investments, sell assets and take other specified corporate actions. The covenants do not contain a rating trigger. Therefore, a change in our debt rating would not trigger a default under the Credit Agreement, our bond indentures or other agreements governing our indebtedness. The Credit Agreement requires that we satisfy a net total lease adjusted leverage ratio and a fixed charge coverage ratio on a quarterly basis and our bond indentures require that, among other things, we satisfy a leverage ratio (not lease adjusted) or a fixed charge coverage ratio (not lease adjusted) as a condition to taking actions such as paying dividends and incurring indebtedness. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES We are involved in litigation from time to time in the ordinary course of business, including litigation arising from damage to customer assets in our facilities caused by fires and other natural disasters. While the outcome of litigation is inherently uncertain, we do not believe any current litigation will have a material adverse effect on our consolidated financial condition, results of operations or cash flows. We have estimated a reasonably possible range for all loss contingencies and believe it is reasonably possible that we could incur aggregate losses in addition to amounts currently accrued for all matters up to an additional $18,000 over the next several years, of which certain amounts would be covered by insurance or indemnity arrangement. |
Stockholders' Equity Matters
Stockholders' Equity Matters | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity Matters | STOCKHOLDERS' EQUITY MATTERS In fiscal year 2022 and the six months ended June 30, 2023, our board of directors declared the following dividends: DECLARATION DATE DIVIDEND RECORD DATE TOTAL PAYMENT DATE February 24, 2022 $ 0.6185 March 15, 2022 $ 179,661 April 6, 2022 April 28, 2022 0.6185 June 15, 2022 179,781 July 6, 2022 August 4, 2022 0.6185 September 15, 2022 179,790 October 4, 2022 November 3, 2022 0.6185 December 15, 2022 179,866 January 5, 2023 February 23, 2023 0.6185 March 15, 2023 180,339 April 5, 2023 May 4, 2023 0.6185 June 15, 2023 180,493 July 6, 2023 On August 3, 2023, we declared a dividend to our stockholders of record as of September 15, 2023 of $0.65 per share, payable on October 5, 2023. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Our reportable segments as of December 31, 2022 are described in Note 11 to Notes to Consolidated Financial Statements included in our Annual Report and are as follows: • Global RIM Business • Global Data Center Business • Corporate and Other An analysis of our business segment information and reconciliation to the accompanying Condensed Consolidated Financial Statements for the three and six months ended June 30, 2023 and 2022 is as follows: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2023 2022 2023 2022 Global RIM Business Total Revenues $ 1,159,867 $ 1,070,476 $ 2,286,393 $ 2,119,367 Adjusted EBITDA 499,062 469,368 976,846 918,163 Global Data Center Business Total Revenues $ 118,033 $ 100,088 $ 230,338 $ 197,075 Adjusted EBITDA 53,809 42,307 104,444 84,284 Corporate and Other Total Revenues $ 80,036 $ 118,970 $ 155,554 $ 221,138 Adjusted EBITDA (77,213) (56,969) (144,824) (116,747) Total Consolidated Total Revenues $ 1,357,936 $ 1,289,534 $ 2,672,285 $ 2,537,580 Adjusted EBITDA 475,658 454,706 936,466 885,700 Adjusted EBITDA for each segment is defined as net income (loss) before interest expense, net, provision (benefit) for income taxes, depreciation and amortization (inclusive of our share of Adjusted EBITDA from our unconsolidated joint ventures), and excluding certain items we do not believe to be indicative of our core operating results, specifically: EXCLUDED • Acquisition and Integration Costs • Restructuring and other transformation • (Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate) • Other expense (income), net • Stock-based compensation expense Internally, we use Adjusted EBITDA as the basis for evaluating the performance of, and allocating resources to, our operating segments. A reconciliation of Net Income (Loss) to Adjusted EBITDA on a consolidated basis for the three and six months ended June 30, 2023 and 2022 is as follows: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2023 2022 2023 2022 Net Income (Loss) $ 1,143 $ 201,858 $ 66,678 $ 243,565 Add/(Deduct): Interest expense, net 144,178 115,057 281,347 229,499 Provision (benefit) for income taxes 4,255 18,083 21,013 28,163 Depreciation and amortization 195,367 178,254 377,461 361,869 Acquisition and Integration Costs 1,511 16,878 3,106 32,539 Restructuring and other transformation 45,588 — 82,501 — (Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate) (1,505) (51,249) (14,566) (51,954) Other expense (income), net, excluding our share of losses (gains) from our unconsolidated joint ventures 58,694 (46,103) 76,185 7,412 Stock-based compensation expense 22,373 20,256 34,882 31,597 Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures 4,054 1,672 7,859 3,010 Adjusted EBITDA $ 475,658 $ 454,706 $ 936,466 $ 885,700 Information as to our revenues by product and service lines by segment for the three and six months ended June 30, 2023 and 2022 is as follows: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2023 2022 2023 2022 Global RIM Business Records Management (1) $ 898,634 $ 818,993 $ 1,766,622 $ 1,621,546 Data Management (1) 130,251 124,394 259,845 258,050 Information Destruction (1)(2) 130,982 127,089 259,926 239,771 Data Center (1) — — — — Global Data Center Business Records Management (1) $ — $ — $ — $ — Data Management (1) — — — — Information Destruction (1) — — — — Data Center (1) 118,033 100,088 230,338 197,075 Corporate and Other Records Management (1) $ 37,409 $ 36,141 $ 71,757 $ 68,039 Data Management (1) — — — — Information Destruction (1)(3) 42,627 82,829 83,797 153,099 Data Center (1) — — — — Total Consolidated Records Management (1) $ 936,043 $ 855,134 $ 1,838,379 $ 1,689,585 Data Management (1) 130,251 124,394 259,845 258,050 Information Destruction (1)(2)(3) 173,609 209,918 343,723 392,870 Data Center (1) 118,033 100,088 230,338 197,075 (1) Each of these offerings has a component of revenue that is storage rental related and a component that is service revenue, except for information destruction, which does not have a storage rental component. (2) Includes secure shredding services. (3) Includes product revenue from ITRenew. |
Related Parties
Related Parties | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Parties | RELATED PARTIES In October 2020, in connection with the formation of the Frankfurt JV, we entered into agreements whereby we earn various fees, including (i) special project revenue and (ii) property management and construction and development fees for services we are providing to the Frankfurt JV (the "Frankfurt JV Agreements"). In March 2019, in connection with the formation of the MakeSpace JV, we entered into a storage and service agreement with the MakeSpace JV to provide certain storage and related services to the MakeSpace JV (the "MakeSpace Agreement"). In February 2022, in connection with the formation of the Clutter JV, we terminated the MakeSpace Agreement and entered into a storage and service agreement with the Clutter JV to provide certain storage and related services to the Clutter JV (the "Clutter Agreement"). On June 29, 2023, we completed the Clutter Acquisition and terminated the Clutter Agreement. Revenue recognized in the accompanying Condensed Consolidated Statements of Operations under these agreements for the three and six months ended June 30, 2023 and 2022 is as follows (approximately): THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2023 2022 2023 2022 Frankfurt JV Agreements (1) $ 800 $ 5,700 $ 1,700 $ 12,800 MakeSpace Agreement and Clutter Agreement (2) 7,000 7,400 13,000 14,400 (1) Revenue associated with the Frankfurt JV Agreements is presented as a component of our Global Data Center Business segment. (2) Revenue associated with the MakeSpace Agreement and the Clutter Agreement is presented as a component of our Global RIM Business segment. |
Restructuring And Other Transfo
Restructuring And Other Transformation | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring And Other Transformation | RESTRUCTURING AND OTHER TRANSFORMATION PROJECT MATTERHORN In September 2022, we announced Project Matterhorn, a global program designed to accelerate the growth of our business. Project Matterhorn investments will focus on transforming our operating model to a global operating model. Project Matterhorn will focus on the formation of a solution-based sales approach that is designed to allow us to optimize our shared services and best practices to better serve our customers' needs. We will be investing to accelerate growth and to capture a greater share of the large, global addressable markets in which we operate. We expect to incur approximately $150,000 in costs annually related to Project Matterhorn from 2023 through 2025. Costs are comprised of (1) restructuring costs, which include (i) site consolidation and other related exit costs, (ii) employee severance costs and (iii) certain professional fees associated with these activities, and (2) other transformation costs, which include professional fees such as project management costs and costs for third party consultants who are assisting in the enablement of our growth initiatives. Total costs related to Project Matterhorn during the three and six months ended June 30, 2023 were $45,588 and $82,501, respectively, and are included in Restructuring and other transformation in our Condensed Consolidated Statement of Operations. There were no Restructuring and other transformation costs related to Project Matterhorn for the three and six months ended June 30, 2022. Restructuring and other transformation related to Project Matterhorn included in the accompanying Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2023, and from the inception of Project Matterhorn through June 30, 2023, is as follows: THREE MONTHS ENDED JUNE 30, 2023 SIX MONTHS ENDED JUNE 30, 2023 FROM INCEPTION OF PROJECT MATTERHORN Restructuring $ 16,127 $ 28,084 $ 41,376 Other transformation 29,461 54,417 83,058 Restructuring and other transformation $ 45,588 $ 82,501 $ 124,434 Restructuring costs for Project Matterhorn, included as a component of Restructuring and other transformation in the accompanying Condensed Consolidated Statement of Operations, by segment for the three and six months ended June 30, 2023, and from the inception of Project Matterhorn through June 30, 2023, is as follows: THREE MONTHS ENDED JUNE 30, 2023 SIX MONTHS ENDED JUNE 30, 2023 FROM INCEPTION OF PROJECT MATTERHORN THROUGH JUNE 30, 2023 Global RIM Business $ 15,000 $ 24,525 $ 37,608 Global Data Center Business — 78 78 Corporate and Other 1,127 3,481 3,690 Total restructuring costs $ 16,127 $ 28,084 $ 41,376 Other transformation costs for Project Matterhorn, included as a component of Restructuring and other transformation in the accompanying Condensed Consolidated Statement of Operations, by segment for the three and six months ended June 30, 2023, and from the inception of Project Matterhorn through June 30, 2023, is as follows: THREE MONTHS ENDED JUNE 30, 2023 SIX MONTHS ENDED JUNE 30, 2023 FROM INCEPTION OF PROJECT MATTERHORN THROUGH JUNE 30, 2023 Global RIM Business $ 4,958 $ 8,443 $ 12,344 Global Data Center Business 498 1,368 1,426 Corporate and Other 24,005 44,606 69,288 Total other transformation costs $ 29,461 $ 54,417 $ 83,058 Accrued restructuring costs and accrued other transformation costs included in the accompanying Condensed Consolidated Balance Sheet as of June 30, 2023 were approximately $7,400 and $22,200, respectively. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 shares | Jun. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Edward Greene [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On June 2, 2023, Mr. Edward Greene, our Executive Vice President, Chief Human Resources Officer, adopted a 10b5-1 trading plan to sell up to 4,851 shares of our common stock between September 5, 2023 and November 30, 2023. | |
Name | Mr. Edward Greene | |
Title | Executive Vice President, Chief Human Resources Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | June 2, 2023 | |
Arrangement Duration | 86 days | |
Aggregate Available | 4,851 | 4,851 |
John Tomovcsik [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On June 16, 2023, Mr. John Tomovcsik, our Executive Vice President, Chief Operating Officer, terminated a 10b5-1 trading plan that was adopted on March 3, 2023 to exercise options to purchase up to 36,824 shares of our common stock and sell up to 69,731 shares of our common stock between June 7, 2023 and February 29, 2024. On June 20, 2023, Mr. Tomovcsik adopted a 10b5-1 trading plan to exercise options to purchase up to 11,859 shares of our common stock and sell up to 41,859 shares of our common stock between September 18, 2023 and June 18, 2024. | |
John Tomovcsik, Trading Plan 1 [Member] | John Tomovcsik [Member] | ||
Trading Arrangements, by Individual | ||
Name | Mr. John Tomovcsik | |
Title | Executive Vice President, Chief Operating Officer | |
Rule 10b5-1 Arrangement Terminated | true | |
Termination Date | June 16, 2023 | |
Arrangement Duration | 267 days | |
John Tomovcsik, Trading Plan 1, Exercise Common Stock [Member] | John Tomovcsik [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 36,824 | 36,824 |
John Tomovcsik, Trading Plan 1, Sell Common Stock [Member] | John Tomovcsik [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 69,731 | 69,731 |
John Tomovcsik, Trading Plan 2 [Member] | John Tomovcsik [Member] | ||
Trading Arrangements, by Individual | ||
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | June 20, 2023 | |
Arrangement Duration | 274 days | |
John Tomovcsik, Trading Plan 2, Exercise Common Stock [Member] | John Tomovcsik [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 11,859 | 11,859 |
John Tomovcsik, Trading Plan 2, Sell Common Stock [Member] | John Tomovcsik [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 41,859 | 41,859 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | CASH AND CASH EQUIVALENTSCash and cash equivalents include cash on hand and cash invested in highly liquid short-term securities, which have remaining maturities at the date of purchase of less than 90 days. Cash and cash equivalents are carried at cost, which approximates fair value. |
Accounts Receivable | ACCOUNTS RECEIVABLE We maintain an allowance for doubtful accounts and a credit memo reserve for estimated losses resulting from the potential inability of our customers to make required payments and potential disputes regarding billing and service issues. |
Leases | LEASES We lease facilities for certain warehouses, data centers and office space. We also have land leases, including those on which certain facilities are located. |
Revenues | REVENUESThe costs associated with the initial movement of customer records into physical storage and certain commissions are considered costs to obtain or fulfill customer contracts (collectively, "Contract Fulfillment Costs").DATA CENTER LESSOR CONSIDERATIONS Our Global Data Center Business features storage rental provided to customers at contractually specified rates over a fixed contractual period, which are accounted for in accordance with Accounting Standards Codification ("ASC") 842, Leases |
Acquisition and Integration Costs | ACQUISITION AND INTEGRATION COSTSAcquisition and integration costs represent operating expenditures directly associated with the closing and integration activities of our business acquisitions that have closed, or are highly probable of closing, and include (i) advisory, legal and professional fees to complete business acquisitions and (ii) costs to integrate acquired businesses into our existing operations, including move, severance and system integration costs (collectively, "Acquisition and Integration Costs"). |
Income Taxes | INCOME TAXESWe provide for income taxes during interim periods based on our estimate of the effective tax rate for the year. |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS In December 2021, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") No. 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ("ASU 2021-08"). ASU 2021-08 requires that an entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers, and for the related revenue contracts in accordance with ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as if it had originated the contracts. We adopted ASU 2021-08 on January 1, 2023 on a prospective basis, and there was no material impact on our condensed consolidated financial statements. |
Commitments and Contingencies | We are involved in litigation from time to time in the ordinary course of business, including litigation arising from damage to customer assets in our facilities caused by fires and other natural disasters. While the outcome of litigation is inherently uncertain, we do not believe any current litigation will have a material adverse effect on our consolidated financial condition, results of operations or cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Allowance for Credit Loss | The rollforward of the allowance for doubtful accounts and credit memo reserves for the six months ended June 30, 2023 is as follows: Balance as of December 31, 2022 $ 54,143 Credit memos charged to revenue 46,222 Allowance for bad debts charged to expense 16,172 Deductions and other (1) (51,320) Balance as of June 30, 2023 $ 65,217 (1) Primarily consists of the issuance of credit memos, the write-off of accounts receivable and the impact associated with currency translation adjustments. |
Schedule of Operating and Financing Lease Right-of-Use Assets and Lease Liabilities | Operating and financing lease right-of-use assets and lease liabilities as of June 30, 2023 and December 31, 2022 are as follows: DESCRIPTION JUNE 30, 2023 DECEMBER 31, 2022 Assets: Operating lease right-of-use assets $ 2,671,371 $ 2,583,704 Financing lease right-of-use assets, net of accumulated depreciation (1) 255,015 251,690 Liabilities: Current Operating lease liabilities $ 303,615 $ 288,738 Financing lease liabilities (1) 49,148 43,857 Long-term Operating lease liabilities $ 2,513,975 $ 2,429,167 Financing lease liabilities (1) 297,190 289,048 (1) Financing lease right-of-use assets, current financing lease liabilities and long-term financing lease liabilities are included within Property, Plant and Equipment, Net, Current portion of long-term debt and Long-term Debt, net of current portion, respectively, within our Condensed Consolidated Balance Sheets. |
Schedule of Lease Costs and Other Information | The components of the lease expense for the three and six months ended June 30, 2023 and 2022 are as follows: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, DESCRIPTION 2023 2022 2023 2022 Operating lease cost (1) $ 161,241 $ 139,863 $ 317,114 $ 283,393 Financing lease cost: Depreciation of financing lease right-of-use assets $ 10,202 $ 10,578 $ 20,210 $ 22,032 Interest expense for financing lease liabilities 4,416 4,359 8,757 9,037 (1) Operating lease cost, the majority of which is included in Cost of sales, includes variable lease costs of $34,418 and $65,998 for the three and six months ended June 30, 2023, respectively, and $28,788 and $59,296 for the three and six months ended June 30, 2022, respectively. SIX MONTHS ENDED JUNE 30, CASH PAID FOR AMOUNTS INCLUDED IN MEASUREMENT OF LEASE LIABILITIES: 2023 2022 Operating cash flows used in operating leases $ 220,764 $ 200,958 Operating cash flows used in financing leases (interest) 8,757 9,037 Financing cash flows used in financing leases 22,010 20,084 NON-CASH ITEMS: Operating lease modifications and reassessments $ 44,779 $ 67,699 New operating leases (including acquisitions and sale-leaseback transactions) 163,326 382,890 |
Schedule of Changes in the Carrying Value of Goodwill Attributable to Each Reportable Operating Segment | The changes in the carrying value of goodwill attributable to each reportable segment for the six months ended June 30, 2023 are as follows: GLOBAL RIM BUSINESS GLOBAL DATA CENTER BUSINESS CORPORATE AND OTHER TOTAL CONSOLIDATED Goodwill balance, net of accumulated amortization as of December 31, 2022 $ 3,852,946 $ 418,502 $ 611,286 $ 4,882,734 Non-tax deductible goodwill acquired during the period 22,876 — 383 23,259 Fair value and other adjustments (80) — 2,333 2,253 Currency translation adjustments 17,169 2,153 577 19,899 Goodwill balance, net of accumulated amortization as of June 30, 2023 $ 3,892,911 $ 420,655 $ 614,579 $ 4,928,145 Accumulated goodwill impairment balance as of June 30, 2023 $ 132,409 $ — $ 26,011 $ 158,420 |
Schedule of Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis | The assets and liabilities carried at fair value measured on a recurring basis as of June 30, 2023 and December 31, 2022 are as follows: FAIR VALUE MEASUREMENTS AT JUNE 30, 2023 USING DESCRIPTION TOTAL CARRYING QUOTED PRICES IN SIGNIFICANT OTHER SIGNIFICANT Money Market Funds $ 11,761 $ — $ 11,761 $ — Time Deposits 1,127 — 1,127 — Trading Securities 10,340 10,322 18 — Derivative Assets 28,286 — 28,286 — Derivative Liabilities 4,540 — 4,540 — Deferred Purchase Obligations (1) 201,190 — — 201,190 FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2022 USING DESCRIPTION TOTAL CARRYING QUOTED PRICES IN SIGNIFICANT OTHER SIGNIFICANT Money Market Funds $ 11,311 $ — $ 11,311 $ — Time Deposits 1,102 — 1,102 — Trading Securities 9,462 9,426 36 — Derivative Assets 51,396 — 51,396 — Derivative Liabilities 489 — 489 — Deferred Purchase Obligations (1) 193,033 — — 193,033 (1) Primarily relates to the fair value of the Deferred Purchase Obligation (as defined in Note 3 to Notes to Consolidated Financial Statements included in our Annual Report) associated with the ITRenew Transaction (as defined below in Note 3), which was determined utilizing a Monte-Carlo model and takes into account our forecasted projections as it relates to the underlying performance of the business. The Monte-Carlo simulation model incorporates assumptions as to expected gross profits over the applicable achievement period, including adjustments for the volatility of timing and amount of the associated revenue and costs, as well as discount rates that account for the risk of the underlying arrangement and overall market risks. Any material change to these assumptions may result in a significantly higher or lower fair value of the Deferred Purchase Obligation. The change in value of the Deferred Purchase Obligation during the three and six months ended June 30, 2023 was driven by the accretion of the obligation to present value. |
Schedule of Changes in Accumulated Other Comprehensive Items, Net | The changes in Accumulated other comprehensive items, net for the three and six months ended June 30, 2023 and 2022 are as follows: THREE MONTHS ENDED JUNE 30, 2023 THREE MONTHS ENDED JUNE 30, 2022 FOREIGN DERIVATIVE FINANCIAL TOTAL FOREIGN DERIVATIVE FINANCIAL TOTAL Beginning of Period $ (414,832) $ 9,064 $ (405,768) $ (313,801) $ 19,443 $ (294,358) Other comprehensive income (loss): Foreign currency translation and other adjustments 18,155 — 18,155 (186,828) — (186,828) Change in fair value of derivative instruments — 7,896 7,896 — 34,211 34,211 Reclassifications from accumulated other comprehensive items, net — (2,527) (2,527) — — — Total other comprehensive income (loss) 18,155 5,369 23,524 (186,828) 34,211 (152,617) End of Period $ (396,677) $ 14,433 $ (382,244) $ (500,629) $ 53,654 $ (446,975) SIX MONTHS ENDED JUNE 30, 2023 SIX MONTHS ENDED JUNE 30, 2022 FOREIGN DERIVATIVE FINANCIAL TOTAL FOREIGN DERIVATIVE FINANCIAL TOTAL Beginning of Period $ (454,509) $ 12,506 $ (442,003) $ (341,024) $ 2,677 $ (338,347) Other comprehensive income (loss): Foreign currency translation and other adjustments 57,832 — 57,832 (159,605) — (159,605) Change in fair value of derivative instruments — 4,454 4,454 — 50,977 50,977 Reclassifications from accumulated other comprehensive items, net — (2,527) (2,527) — — — Total other comprehensive income (loss) 57,832 1,927 59,759 (159,605) 50,977 (108,628) End of Period $ (396,677) $ 14,433 $ (382,244) $ (500,629) $ 53,654 $ (446,975) |
Schedule of Cost and Accumulated Amortization Associated with Contract Fulfillment Costs | Contract Fulfillment Costs as of June 30, 2023 and December 31, 2022 are as follows: JUNE 30, 2023 DECEMBER 31, 2022 GROSS ACCUMULATED NET GROSS ACCUMULATED NET Intake Costs asset $ 75,428 $ (47,919) $ 27,509 $ 68,345 $ (42,132) $ 26,213 Commissions asset 148,003 (66,431) 81,572 133,145 (58,949) 74,196 |
Schedule of Deferred Revenue Liabilities | Deferred revenue liabilities are reflected in our Condensed Consolidated Balance Sheets as follows: DESCRIPTION LOCATION IN BALANCE SHEET JUNE 30, 2023 DECEMBER 31, 2022 Deferred revenue - Current Deferred revenue $ 336,068 $ 328,910 Deferred revenue - Long-term Other Long-term Liabilities 22,343 32,960 |
Schedule of Revenue | Storage rental revenue, including revenue associated with power and connectivity, associated with our Global Data Center Business for the three and six months ended June 30, 2023 and 2022 is as follows: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2023 2022 2023 2022 Storage rental revenue (1) $ 110,990 $ 89,768 $ 218,425 $ 177,219 |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense for the Employee Stock-Based Awards for the three and six months ended June 30, 2023 and 2022 is as follows: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2023 2022 2023 2022 Stock-based compensation expense $ 22,373 $ 20,256 $ 34,882 $ 31,597 |
Schedule of Acquisition and Integration Costs | Acquisition and Integration Costs for the three and six months ended June 30, 2023 and 2022 are as follows: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2023 2022 2023 2022 Acquisition and Integration Costs $ 1,511 $ 16,878 $ 3,106 $ 32,539 |
Schedule of Components of Gain/Loss on Sale/Disposal of Property, Plant and Equipment | (Gain) loss on disposal/write-down of property, plant and equipment, net for the three and six months ended June 30, 2023 and 2022 is as follows: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2023 2022 (2) 2023 (1) 2022 (2) (Gain) Loss on disposal/write-down of property, plant and equipment, net (3) $ (1,505) $ (51,249) $ (14,566) $ (51,954) (1) The gains for the six months ended June 30, 2023 primarily consist of a gain of approximately $18,500 associated with a sale-leaseback transaction of a facility in Singapore during the first quarter of 2023. (2) The gains for the three and six months ended June 30, 2022 primarily consist of gains of approximately $49,000 associated with sale and sale-leaseback transactions of 11 facilities and parcels of land in the United States. (3) The gains recognized during both 2023 and 2022 are the result of our program to monetize a small portion of our industrial assets through sale and sale-leaseback transactions. The terms for these leases are consistent with the terms of our lease portfolio, which are disclosed in detail in Note 2.j. to Notes to Consolidated Financial Statements included in our Annual Report. |
Schedule of Other Expense (Income), Net | Other expense (income), net for the three and six months ended June 30, 2023 and 2022 consists of the following: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, DESCRIPTION 2023 2022 2023 2022 Foreign currency transaction losses (gains), net (1)(2) $ 15,063 $ (55,039) $ 29,487 $ (68,240) Debt extinguishment expense — — — 671 Other, net (3)(4) 47,887 13,822 54,663 82,253 Other Expense (Income), Net $ 62,950 $ (41,217) $ 84,150 $ 14,684 (1) The losses for the three and six months ended June 30, 2023 primarily consist of the impact of changes in the exchange rate of the British pound sterling against the United States dollar on our intercompany balances with and between certain of our subsidiaries. (2) The gains for the three and six months ended June 30, 2022 primarily consist of the impact of changes in the exchange rate of the Euro and the British pound sterling against the United States dollar on our intercompany balances with and between certain of our subsidiaries. (3) Other, net for the six months ended June 30, 2023 consists primarily of a loss of approximately $38,000 associated with the remeasurement to fair value of our previously held equity interest in the Clutter JV (as defined and discussed in Note 4) as well as losses on our equity method investments and the change in value of the Deferred Purchase Obligation. (4) Other, net for the six months ended June 30, 2022 consists primarily of (i) a loss of approximately $105,800 associated with the OSG Deconsolidation (as defined in Note 4 to Notes to Consolidated Financial Statements included in our Annual Report), partially offset by (ii) a gain of approximately $35,800 associated with the Clutter Transaction (as defined in Note 5 to Notes to Consolidated Financial Statements included in our Annual Report). |
Schedule of Income Taxes | Our effective tax rates for the three and six months ended June 30, 2023 and 2022 are as follows: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2023 (1) 2022 (2) 2023 (1) 2022 (2) Effective Tax Rate 78.8 % 8.2 % 24.0 % 10.4 % (1) The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three and six months ended June 30, 2023 were (i) the loss of approximately $38,000 recorded in Other, net a component of Other expense (income), net during the second quarter of 2023 to reflect the remeasurement of our previously held equity interest in the Clutter JV to fair value, for which there was no tax impact, (ii) the benefits derived from the dividends paid deduction and (iii) the differences in the tax rates to which our foreign earnings are subject. (2) The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three and six months ended June 30, 2022 were the benefits derived from the dividends paid deduction and the differences in the tax rates to which our foreign earnings are subject. In addition, there were gains and losses recorded in Other expense (income), net and Gain (loss) on disposal/write-down of property, plant and equipment net, during the period for which there was an insignificant tax impact. During the first quarter of 2022, there was also a release of valuation allowances on deferred tax assets of our U.S. taxable REIT subsidiaries of approximately $9,900 as a result of our acquisition of Intercept Parent, Inc. ("ITRenew"). |
Schedule of Basic and Diluted Net Income (Loss) Per Share Attributable to the Entity | The calculations of basic and diluted income (loss) per share for the three and six months ended June 30, 2023 and 2022 are as follows: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2023 2022 2023 2022 Net Income (Loss) $ 1,143 $ 201,858 $ 66,678 $ 243,565 Less: Net Income (Loss) Attributable to Noncontrolling Interests 1,029 1,777 1,969 1,185 Net Income (Loss) Attributable to Iron Mountain Incorporated (utilized in numerator of Earnings Per Share calculation) $ 114 $ 200,081 $ 64,709 $ 242,380 Weighted-average shares—basic 291,825,000 290,756,000 291,633,000 290,542,000 Effect of dilutive potential stock options 1,322,000 1,249,262 1,269,000 1,122,444 Effect of dilutive potential RSUs and PUs 380,000 481,972 386,000 501,975 Weighted-average shares—diluted 293,527,000 292,487,234 293,288,000 292,166,419 Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated: Basic $ 0.00 $ 0.69 $ 0.22 $ 0.83 Diluted $ 0.00 $ 0.68 $ 0.22 $ 0.83 Antidilutive stock options, RSUs and PUs excluded from the calculation 157,132 234,085 151,431 494,833 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of recognized identified assets acquired and liabilities assumed | A summary of the cumulative consideration paid and the preliminary allocation of the purchase price paid for all of our acquisitions closed during the six months ended June 30, 2023 is as follows: SIX MONTHS ENDED JUNE 30, 2023 Cash Paid (gross of cash acquired) (1) $ 21,215 Deferred Purchase Obligation, Purchase Price Holdbacks and Other 9,290 Fair Value of Previously Held Equity Interest 9,000 Settlement of Pre-Existing Relationships 20,122 Total Consideration 59,627 Fair Value of Identifiable Assets Acquired 56,248 Fair Value of Identifiable Liabilities Assumed (19,880) Total Fair Value of Identifiable Net Assets Acquired 36,368 Goodwill Initially Recorded (2) $ 23,259 (1) Cash paid for acquisitions, net in our Condensed Consolidated Statement of Cash Flows includes (i) cash acquired of $1,980 relating to acquisitions completed during the six months ended June 30, 2023 and (ii) contingent and other payments of $2,230 for the six months ended June 30, 2023 relating to acquisitions completed prior to January 1, 2023. (2) Goodwill is primarily attributable to the assembled workforce, expanded market opportunities and costs and other operating synergies anticipated upon the integration of the operations of us and the acquired businesses. |
Business Acquisition, Pro Forma Information | These operating expenditures have been reflected within the results of operations in the Pro Forma Financial Information as if they were incurred on January 1, 2021. THREE MONTHS ENDED JUNE 30, 2022 SIX MONTHS ENDED JUNE 30, 2022 Total Revenues $ 1,289,534 $ 2,555,554 Income from Continuing Operations $ 201,858 $ 243,696 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, All Other Investments [Abstract] | |
Schedule of Equity Method Investments | The following joint ventures are accounted for as equity method investments and are presented as a component of Other within Other assets, net in our Condensed Consolidated Balance Sheets. The carrying values and equity interests in our joint ventures at June 30, 2023 and December 31, 2022 are as follows: JUNE 30, 2023 DECEMBER 31, 2022 CARRYING VALUE EQUITY INTEREST CARRYING VALUE EQUITY INTEREST Web Werks JV $ 98,650 53.58 % $ 98,278 53.58 % Joint venture with AGC Equity Partners (the "Frankfurt JV") 59,394 20.00 % 37,194 20.00 % Clutter JV — — % 54,172 26.73 % |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The fair value of derivative instruments recognized in our Condensed Consolidated Balance Sheets at June 30, 2023 and December 31, 2022, by derivative instrument, are as follows: JUNE 30, 2023 DECEMBER 31, 2022 DERIVATIVE INSTRUMENTS (1) Assets Liabilities Assets Liabilities Cash Flow Hedges (2) Interest rate swap agreements $ 6,852 $ — $ 12,995 $ 489 Net Investment Hedges (3) Cross-currency swap agreements 21,434 4,540 38,401 — (1) Our derivative assets are included as a component of (i) Prepaid expenses and other or (ii) Other within Other assets, net and our derivative liabilities are included as a component of (i) Accrued expenses and other current liabilities or (ii) Other long-term liabilities in our Condensed Consolidated Balance Sheets. As of June 30, 2023, $1,459 is included within Prepaid expenses and other, $26,827 is included within Other assets and $4,540 is included within Accrued expense and other current liabilities. As of December 31, 2022, $2,606 is included within Prepaid expenses and other, $48,790 is included within Other assets and $489 is included within Other long-term liabilities. (2) As of June 30, 2023, cumulative net gains recorded within Accumulated other comprehensive items, net associated with our interest rate swap agreements are $14,433, which include $7,581 related to our terminated interest rate swap agreements. (3) As of June 30, 2023, cumulative net gains recorded within Accumulated other comprehensive items, net associated with our cross-currency swap agreements are $37,645, which include $20,751 related to the excluded component of our cross-currency swap agreements. |
Schedule of (Losses) Gains for Derivative Instruments | Unrealized gains (losses) recognized in Accumulated other comprehensive income during the three and six months ended June 30, 2023 and 2022, by derivative instrument, are as follows: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, DERIVATIVE INSTRUMENTS 2023 2022 2023 2022 Cash Flow Hedges Interest rate swap agreements $ 7,896 $ 3,932 $ 4,454 $ 15,402 Net Investment Hedges Cross-currency swap agreements (12,704) 30,279 (21,507) 35,575 Cross-currency swap agreements (excluded component) 5,817 — 11,651 — Gains (losses) recognized in Net income during the three and six months ended June 30, 2023 and 2022, by derivative instrument, are as follows: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, DERIVATIVE INSTRUMENTS Location of gain (loss) 2023 2022 2023 2022 Cash Flow Hedges Interest rate swap agreements Interest expense $ 2,527 $ — $ 2,527 $ — Net Investment Hedges Cross-currency swap agreements (excluded component) Interest expense (5,817) — (11,651) — |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Amount and Fair Value of Long-Term Debt Instruments | Long-term debt is as follows: JUNE 30, 2023 DECEMBER 31, 2022 DEBT (INCLUSIVE OF DISCOUNT) UNAMORTIZED DEFERRED FINANCING COSTS CARRYING AMOUNT FAIR VALUE DEBT (INCLUSIVE OF DISCOUNT) UNAMORTIZED DEFERRED FINANCING COSTS CARRYING AMOUNT FAIR VALUE Revolving Credit Facility (1) $ 679,500 $ (5,332) $ 674,168 $ 679,500 $ 1,072,200 $ (6,790) $ 1,065,410 $ 1,072,200 Term Loan A (1) 234,375 — 234,375 234,375 240,625 — 240,625 240,625 Term Loan B (1) 662,685 (3,122) 659,563 663,250 666,073 (3,747) 662,326 666,750 Australian Dollar Term Loan 196,333 (543) 195,790 198,005 202,641 (633) 202,008 204,623 UK Bilateral Revolving Credit Facility 177,277 — 177,277 177,277 169,361 — 169,361 169,361 3 7 / 8 % GBP Senior Notes due 2025 (the "GBP Notes") 506,506 (2,231) 504,275 472,474 483,888 (2,589) 481,299 445,206 4 7 / 8 % Senior Notes due 2027 (the "4 7 / 8 % Notes due 2027") (2) 1,000,000 (6,043) 993,957 932,500 1,000,000 (6,754) 993,246 917,500 5 1 / 4 % Senior Notes due 2028 (the "5 1 / 4 % Notes due 2028") (2) 825,000 (5,609) 819,391 770,344 825,000 (6,200) 818,800 754,875 5% Senior Notes due 2028 (the "5% Notes due 2028") (2) 500,000 (3,678) 496,322 461,250 500,000 (4,039) 495,961 450,000 7% Senior Notes due 2029 (the "7% Notes due 2029") (2) 1,000,000 (11,853) 988,147 992,500 — — — — 4 7 / 8 % Senior Notes due 2029 (the "4 7 / 8 % Notes due 2029") (2) 1,000,000 (9,041) 990,959 892,500 1,000,000 (9,764) 990,236 865,000 5 1 / 4 % Senior Notes due 2030 (the "5 1 / 4 % Notes due 2030") (2) 1,300,000 (10,655) 1,289,345 1,166,750 1,300,000 (11,407) 1,288,593 1,111,500 4 1 / 2 % Senior Notes due 2031 (the "4 1 / 2 % Notes") (2) 1,100,000 (9,539) 1,090,461 940,500 1,100,000 (10,161) 1,089,839 891,000 5% Senior Notes due 2032 (the "5% Notes due 2032") 750,000 (11,858) 738,142 645,000 750,000 (12,511) 737,489 622,500 5 5 / 8 % Senior Notes due 2032 (the "5 5 / 8 % Notes") (2) 600,000 (5,275) 594,725 535,500 600,000 (5,566) 594,434 520,500 Real Estate Mortgages, Financing Lease Liabilities and Other 457,724 (483) 457,241 457,724 425,777 (578) 425,199 425,777 Accounts Receivable Securitization Program 343,100 (426) 342,674 343,100 314,700 (531) 314,169 314,700 Total Long-term Debt 11,332,500 (85,688) 11,246,812 10,650,265 (81,270) 10,568,995 Less Current Portion (102,582) — (102,582) (87,546) — (87,546) Long-term Debt, Net of Current Portion $ 11,229,918 $ (85,688) $ 11,144,230 $ 10,562,719 $ (81,270) $ 10,481,449 (1) Collectively, the “Credit Agreement”. The Credit Agreement consists of a revolving credit facility (the “Revolving Credit Facility”), a term loan A (the “Term Loan A”) and a term loan B (the "Term Loan B"). The Revolving Credit Facility and the Term Loan A are scheduled to mature on March 18, 2027. The Term Loan B is scheduled to mature on January 2, 2026. The remaining amount available for borrowing under the Revolving Credit Facility as of June 30, 2023 was $1,566,061 (which amount represents the maximum availability as of such date). The weighted average interest rate in effect under the Revolving Credit Facility was 7.0% and 6.2% as of June 30, 2023 and December 31, 2022, respectively. (2) Collectively, the "Parent Notes". IMI is the direct obligor on the Parent Notes, which are fully and unconditionally guaranteed, on a senior basis, by IMI’s United States subsidiaries that represent the substantial majority of our United States operations (the "Note Guarantors"). These guarantees are joint and several obligations of the Note Guarantors. The remainder of our subsidiaries do not guarantee the Parent Notes. On May 15, 2023, IMI completed a private offering of: SERIES OF NOTES AGGREGATE PRINCIPAL AMOUNT MATURITY DATE INTEREST PAYMENT DUE PAR CALL DATE (1) 7% Notes due 2029 $ 1,000,000 February 15, 2029 February 15 and August 15 August 15, 2025 (1) We may redeem the 7% Notes due 2029 at any time, at our option, in whole or in part. Prior to the par call date, we may redeem the 7% Notes due 2029 at the redemption price or make-whole premium specified in the indenture governing the 7% Notes due 2029, together with accrued and unpaid interest to, but excluding, the redemption date. On or after the par call date, we may redeem the 7% Notes due 2029 at a price equal to 100% of the principal amount being redeemed, together with accrued and unpaid interest to, but excluding, the redemption date. |
Stockholders' Equity Matters (T
Stockholders' Equity Matters (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of Dividend Declared and Payments | In fiscal year 2022 and the six months ended June 30, 2023, our board of directors declared the following dividends: DECLARATION DATE DIVIDEND RECORD DATE TOTAL PAYMENT DATE February 24, 2022 $ 0.6185 March 15, 2022 $ 179,661 April 6, 2022 April 28, 2022 0.6185 June 15, 2022 179,781 July 6, 2022 August 4, 2022 0.6185 September 15, 2022 179,790 October 4, 2022 November 3, 2022 0.6185 December 15, 2022 179,866 January 5, 2023 February 23, 2023 0.6185 March 15, 2023 180,339 April 5, 2023 May 4, 2023 0.6185 June 15, 2023 180,493 July 6, 2023 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Analysis of Business Segment Information | An analysis of our business segment information and reconciliation to the accompanying Condensed Consolidated Financial Statements for the three and six months ended June 30, 2023 and 2022 is as follows: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2023 2022 2023 2022 Global RIM Business Total Revenues $ 1,159,867 $ 1,070,476 $ 2,286,393 $ 2,119,367 Adjusted EBITDA 499,062 469,368 976,846 918,163 Global Data Center Business Total Revenues $ 118,033 $ 100,088 $ 230,338 $ 197,075 Adjusted EBITDA 53,809 42,307 104,444 84,284 Corporate and Other Total Revenues $ 80,036 $ 118,970 $ 155,554 $ 221,138 Adjusted EBITDA (77,213) (56,969) (144,824) (116,747) Total Consolidated Total Revenues $ 1,357,936 $ 1,289,534 $ 2,672,285 $ 2,537,580 Adjusted EBITDA 475,658 454,706 936,466 885,700 |
Schedule of Reconciliation of Net Income (Loss) to Adjusted EBITDA | A reconciliation of Net Income (Loss) to Adjusted EBITDA on a consolidated basis for the three and six months ended June 30, 2023 and 2022 is as follows: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2023 2022 2023 2022 Net Income (Loss) $ 1,143 $ 201,858 $ 66,678 $ 243,565 Add/(Deduct): Interest expense, net 144,178 115,057 281,347 229,499 Provision (benefit) for income taxes 4,255 18,083 21,013 28,163 Depreciation and amortization 195,367 178,254 377,461 361,869 Acquisition and Integration Costs 1,511 16,878 3,106 32,539 Restructuring and other transformation 45,588 — 82,501 — (Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate) (1,505) (51,249) (14,566) (51,954) Other expense (income), net, excluding our share of losses (gains) from our unconsolidated joint ventures 58,694 (46,103) 76,185 7,412 Stock-based compensation expense 22,373 20,256 34,882 31,597 Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures 4,054 1,672 7,859 3,010 Adjusted EBITDA $ 475,658 $ 454,706 $ 936,466 $ 885,700 |
Schedule of Revenues by Product and Service Lines by Segment | Information as to our revenues by product and service lines by segment for the three and six months ended June 30, 2023 and 2022 is as follows: THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2023 2022 2023 2022 Global RIM Business Records Management (1) $ 898,634 $ 818,993 $ 1,766,622 $ 1,621,546 Data Management (1) 130,251 124,394 259,845 258,050 Information Destruction (1)(2) 130,982 127,089 259,926 239,771 Data Center (1) — — — — Global Data Center Business Records Management (1) $ — $ — $ — $ — Data Management (1) — — — — Information Destruction (1) — — — — Data Center (1) 118,033 100,088 230,338 197,075 Corporate and Other Records Management (1) $ 37,409 $ 36,141 $ 71,757 $ 68,039 Data Management (1) — — — — Information Destruction (1)(3) 42,627 82,829 83,797 153,099 Data Center (1) — — — — Total Consolidated Records Management (1) $ 936,043 $ 855,134 $ 1,838,379 $ 1,689,585 Data Management (1) 130,251 124,394 259,845 258,050 Information Destruction (1)(2)(3) 173,609 209,918 343,723 392,870 Data Center (1) 118,033 100,088 230,338 197,075 (1) Each of these offerings has a component of revenue that is storage rental related and a component that is service revenue, except for information destruction, which does not have a storage rental component. (2) Includes secure shredding services. (3) Includes product revenue from ITRenew. |
Related Parties (Tables)
Related Parties (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Revenue Recognized | Revenue recognized in the accompanying Condensed Consolidated Statements of Operations under these agreements for the three and six months ended June 30, 2023 and 2022 is as follows (approximately): THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 2023 2022 2023 2022 Frankfurt JV Agreements (1) $ 800 $ 5,700 $ 1,700 $ 12,800 MakeSpace Agreement and Clutter Agreement (2) 7,000 7,400 13,000 14,400 (1) Revenue associated with the Frankfurt JV Agreements is presented as a component of our Global Data Center Business segment. (2) Revenue associated with the MakeSpace Agreement and the Clutter Agreement is presented as a component of our Global RIM Business segment. |
Restructuring And Other Trans_2
Restructuring And Other Transformation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring And Other Transformation | Restructuring and other transformation related to Project Matterhorn included in the accompanying Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2023, and from the inception of Project Matterhorn through June 30, 2023, is as follows: THREE MONTHS ENDED JUNE 30, 2023 SIX MONTHS ENDED JUNE 30, 2023 FROM INCEPTION OF PROJECT MATTERHORN Restructuring $ 16,127 $ 28,084 $ 41,376 Other transformation 29,461 54,417 83,058 Restructuring and other transformation $ 45,588 $ 82,501 $ 124,434 Restructuring costs for Project Matterhorn, included as a component of Restructuring and other transformation in the accompanying Condensed Consolidated Statement of Operations, by segment for the three and six months ended June 30, 2023, and from the inception of Project Matterhorn through June 30, 2023, is as follows: THREE MONTHS ENDED JUNE 30, 2023 SIX MONTHS ENDED JUNE 30, 2023 FROM INCEPTION OF PROJECT MATTERHORN THROUGH JUNE 30, 2023 Global RIM Business $ 15,000 $ 24,525 $ 37,608 Global Data Center Business — 78 78 Corporate and Other 1,127 3,481 3,690 Total restructuring costs $ 16,127 $ 28,084 $ 41,376 Other transformation costs for Project Matterhorn, included as a component of Restructuring and other transformation in the accompanying Condensed Consolidated Statement of Operations, by segment for the three and six months ended June 30, 2023, and from the inception of Project Matterhorn through June 30, 2023, is as follows: THREE MONTHS ENDED JUNE 30, 2023 SIX MONTHS ENDED JUNE 30, 2023 FROM INCEPTION OF PROJECT MATTERHORN THROUGH JUNE 30, 2023 Global RIM Business $ 4,958 $ 8,443 $ 12,344 Global Data Center Business 498 1,368 1,426 Corporate and Other 24,005 44,606 69,288 Total other transformation costs $ 29,461 $ 54,417 $ 83,058 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts and Credit Memo Reserves (Details) - Allowance for doubtful accounts $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |
Beginning balance | $ 54,143 |
Credit memos charged to revenue | 46,222 |
Allowance for bad debts charged to expense | 16,172 |
Deductions and other | (51,320) |
Ending balance | $ 65,217 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Supplemental Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Operating lease right-of-use assets | $ 2,671,371 | $ 2,583,704 |
Financing lease right-of-use assets, net of accumulated depreciation | 255,015 | 251,690 |
Current | ||
Operating lease liabilities | 303,615 | 288,738 |
Finance lease liabilities | 49,148 | 43,857 |
Long-term | ||
Operating lease liabilities | 2,513,975 | 2,429,167 |
Finance lease liabilities | $ 297,190 | $ 289,048 |
Finance lease, right-of-use asset, statement of financial position [Extensible List] | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization |
Operating lease, liability, current, statement of financial position [Extensible List] | Accrued expenses and other current liabilities (includes current portion of operating lease liabilities) | Accrued expenses and other current liabilities (includes current portion of operating lease liabilities) |
Finance lease, liability, current, statement of financial position [Extensible List] | Current portion of long-term debt | Current portion of long-term debt |
Finance lease, liability, noncurrent, statement of financial position [Extensible List] | Long-term Debt, net of current portion | Long-term Debt, net of current portion |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Leases Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accounting Policies [Abstract] | ||||
Operating lease cost | $ 161,241 | $ 139,863 | $ 317,114 | $ 283,393 |
Depreciation of financing lease right-of-use assets | 10,202 | 10,578 | 20,210 | 22,032 |
Interest expense for financing lease liabilities | 4,416 | 4,359 | 8,757 | 9,037 |
Variable lease costs | $ 34,418 | $ 28,788 | $ 65,998 | $ 59,296 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Leases Narrative (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Accounting Policies [Abstract] | |
Operating leases not yet commenced, term | 25 years |
Operating leases not yet commenced | $ 170,100 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Supplemental Cash Flows (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Accounting Policies [Abstract] | ||
Operating cash flows used in operating leases | $ 220,764 | $ 200,958 |
Operating cash flows used in financing leases (interest) | 8,757 | 9,037 |
Financing cash flows used in financing leases | 22,010 | 20,084 |
Operating lease modifications and reassessments | 44,779 | 67,699 |
New operating leases (including acquisitions and sale-leaseback transactions) | $ 163,326 | $ 382,890 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Schedule of Changes in Carrying Value of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Gross amount of goodwill [Roll Forward] | |
Goodwill beginning balance | $ 4,882,734 |
Non-tax deductible goodwill acquired during the period | 23,259 |
Fair value and other adjustments | 2,253 |
Currency translation adjustments | 19,899 |
Goodwill ending balance | 4,928,145 |
Accumulated goodwill impairment | 158,420 |
GLOBAL RIM BUSINESS | |
Gross amount of goodwill [Roll Forward] | |
Goodwill beginning balance | 3,852,946 |
Non-tax deductible goodwill acquired during the period | 22,876 |
Fair value and other adjustments | (80) |
Currency translation adjustments | 17,169 |
Goodwill ending balance | 3,892,911 |
Accumulated goodwill impairment | 132,409 |
GLOBAL DATA CENTER BUSINESS | |
Gross amount of goodwill [Roll Forward] | |
Goodwill beginning balance | 418,502 |
Non-tax deductible goodwill acquired during the period | 0 |
Fair value and other adjustments | 0 |
Currency translation adjustments | 2,153 |
Goodwill ending balance | 420,655 |
Accumulated goodwill impairment | 0 |
CORPORATE AND OTHER | |
Gross amount of goodwill [Roll Forward] | |
Goodwill beginning balance | 611,286 |
Non-tax deductible goodwill acquired during the period | 383 |
Fair value and other adjustments | 2,333 |
Currency translation adjustments | 577 |
Goodwill ending balance | 614,579 |
Accumulated goodwill impairment | $ 26,011 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1) | ||
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items] | ||
Trading Securities | $ 10,322 | $ 9,426 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Deferred Purchase Obligations | 0 | 0 |
QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1) | Money Market Funds | ||
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1) | Time Deposits | ||
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | ||
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items] | ||
Trading Securities | 18 | 36 |
Derivative Assets | 28,286 | 51,396 |
Derivative Liabilities | 4,540 | 489 |
Deferred Purchase Obligations | 0 | 0 |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | Money Market Funds | ||
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items] | ||
Cash and cash equivalents | 11,761 | 11,311 |
SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | Time Deposits | ||
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items] | ||
Cash and cash equivalents | 1,127 | 1,102 |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | ||
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items] | ||
Trading Securities | 0 | 0 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Deferred Purchase Obligations | 201,190 | 193,033 |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | Money Market Funds | ||
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | Time Deposits | ||
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Estimate of Fair Value | ||
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items] | ||
Trading Securities | 10,340 | 9,462 |
Derivative Assets | 28,286 | 51,396 |
Derivative Liabilities | 4,540 | 489 |
Deferred Purchase Obligations | 201,190 | 193,033 |
Estimate of Fair Value | Money Market Funds | ||
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items] | ||
Cash and cash equivalents | 11,761 | 11,311 |
Estimate of Fair Value | Time Deposits | ||
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items] | ||
Cash and cash equivalents | $ 1,127 | $ 1,102 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Accumulated Other Comprehensive Income and Other Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
AOCI Rollforward | ||||
Beginning of Period | $ 545,589 | $ 758,771 | $ 636,793 | $ 857,068 |
Other comprehensive income (loss): | ||||
Foreign currency translation and other adjustments | 18,155 | (186,828) | 57,832 | (159,605) |
Change in Fair Value of Derivative Instruments | 7,896 | 34,211 | 4,454 | 50,977 |
Reclassifications from Accumulated Other Comprehensive Items, net | (2,527) | 0 | (2,527) | 0 |
Total other comprehensive income (loss) | 23,524 | (152,617) | 59,759 | (108,628) |
End of period | 416,343 | 651,775 | 416,343 | 651,775 |
TOTAL | ||||
AOCI Rollforward | ||||
Beginning of Period | (405,768) | (294,358) | (442,003) | (338,347) |
Other comprehensive income (loss): | ||||
End of period | (382,244) | (446,975) | (382,244) | (446,975) |
FOREIGN CURRENCY TRANSLATION AND OTHER ADJUSTMENTS | ||||
AOCI Rollforward | ||||
Beginning of Period | (414,832) | (313,801) | (454,509) | (341,024) |
Other comprehensive income (loss): | ||||
Foreign currency translation and other adjustments | 18,155 | (186,828) | 57,832 | (159,605) |
Change in Fair Value of Derivative Instruments | 0 | 0 | 0 | 0 |
Reclassifications from Accumulated Other Comprehensive Items, net | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss) | 18,155 | (186,828) | 57,832 | (159,605) |
End of period | (396,677) | (500,629) | (396,677) | (500,629) |
DERIVATIVE FINANCIAL INSTRUMENTS | ||||
AOCI Rollforward | ||||
Beginning of Period | 9,064 | 19,443 | 12,506 | 2,677 |
Other comprehensive income (loss): | ||||
Foreign currency translation and other adjustments | 0 | 0 | 0 | 0 |
Change in Fair Value of Derivative Instruments | 7,896 | 34,211 | 4,454 | 50,977 |
Reclassifications from Accumulated Other Comprehensive Items, net | (2,527) | 0 | (2,527) | 0 |
Total other comprehensive income (loss) | 5,369 | 34,211 | 1,927 | 50,977 |
End of period | $ 14,433 | $ 53,654 | $ 14,433 | $ 53,654 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Contract Fulfillment Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Intake Costs asset | ||
Contract With Customer, Asset And Liabilities [Line Items] | ||
GROSS CARRYING AMOUNT | $ 75,428 | $ 68,345 |
ACCUMULATED AMORTIZATION | (47,919) | (42,132) |
NET CARRYING AMOUNT | 27,509 | 26,213 |
Commissions asset | ||
Contract With Customer, Asset And Liabilities [Line Items] | ||
GROSS CARRYING AMOUNT | 148,003 | 133,145 |
ACCUMULATED AMORTIZATION | (66,431) | (58,949) |
NET CARRYING AMOUNT | $ 81,572 | $ 74,196 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Summary of Deferred Revenue Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Deferred revenue - Current | $ 336,068 | $ 328,910 |
Deferred revenue - Long-term | $ 22,343 | $ 32,960 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Storage Rental (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Lessor, Lease, Description [Line Items] | ||||
Storage rental | $ 1,357,936 | $ 1,289,534 | $ 2,672,285 | $ 2,537,580 |
GLOBAL DATA CENTER BUSINESS | ||||
Lessor, Lease, Description [Line Items] | ||||
Storage rental | 118,033 | 100,088 | 230,338 | 197,075 |
Storage Rental | ||||
Lessor, Lease, Description [Line Items] | ||||
Storage rental | 830,756 | 753,126 | 1,640,845 | 1,504,196 |
Storage Rental | GLOBAL DATA CENTER BUSINESS | ||||
Lessor, Lease, Description [Line Items] | ||||
Storage rental | 110,990 | 89,768 | 218,425 | 177,219 |
Storage Rental, Power and Connectivity | GLOBAL DATA CENTER BUSINESS | ||||
Lessor, Lease, Description [Line Items] | ||||
Storage rental | $ 38,692 | $ 30,713 | $ 79,364 | $ 59,031 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accounting Policies [Abstract] | ||||
Stock-based compensation expense | $ 22,373 | $ 20,256 | $ 34,882 | $ 31,597 |
Unrecognized compensation cost | $ 87,880 | $ 87,880 |
Summary of Significant Accou_16
Summary of Significant Accounting Policies - Acquisition and Integration costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accounting Policies [Abstract] | ||||
Acquisition and Integration Costs | $ 1,511 | $ 16,878 | $ 3,106 | $ 32,539 |
Summary of Significant Accou_17
Summary of Significant Accounting Policies - (Gain) Loss on Disposal/Write-Down of Property, Plant and Equipment, Net (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) facility | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) facility | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
(Gain) loss on disposal/write-down of property, plant and equipment, net | $ (1,505) | $ (51,249) | $ (14,566) | $ (51,954) |
Facilities in Singapore | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Sale and sale-leaseback transactions | $ 18,500 | |||
Facilities And Parcels Of Land In The United States [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Sale and sale-leaseback transactions | $ 49 | $ 49 | ||
Number of sale lease back properties | facility | 11 | 11 |
Summary of Significant Accou_18
Summary of Significant Accounting Policies - Other (Income) Expense, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accounting Policies [Abstract] | ||||
Foreign currency transaction losses (gains), net | $ 15,063 | $ (55,039) | $ 29,487 | $ (68,240) |
Debt extinguishment expense | 0 | 0 | 0 | 671 |
Other, net | 47,887 | 13,822 | 54,663 | 82,253 |
Other Expense (Income), Net | 62,950 | $ (41,217) | 84,150 | 14,684 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
(Loss) gain on disposal | 35,821 | |||
Clutter JV | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss associated with the Clutter transactions | $ 38,000 | $ 38,000 | ||
(Loss) gain on disposal | 35,800 | |||
OSG Records Management (Europe) Limited | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
(Loss) gain on disposal | $ (105,800) |
Summary of Significant Accou_19
Summary of Significant Accounting Policies - Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | |
Accounting Policies [Abstract] | |||||
Effective Tax Rate | 78.80% | 8.20% | 24% | 10.40% | |
Federal statutory tax rate | 21% | 21% | 21% | 21% | |
Deferred tax assets | $ 9,900 |
Summary of Significant Accou_20
Summary of Significant Accounting Policies - Income (Loss) Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income (Loss) Per Share-Basic and Diluted | ||||
Net Income (Loss) | $ 1,143 | $ 201,858 | $ 66,678 | $ 243,565 |
Less: Net Income (Loss) Attributable to Noncontrolling Interests | 1,029 | 1,777 | 1,969 | 1,185 |
Net Income (Loss) Attributable to Iron Mountain Incorporated (utilized in numerator of Earnings Per Share calculation) | $ 114 | $ 200,081 | $ 64,709 | $ 242,380 |
Weighted-average shares—basic (in shares) | 291,825,000 | 290,756,000 | 291,633,000 | 290,542,000 |
Effect of dilutive potential stock options (in shares) | 1,322,000 | 1,249,262 | 1,269,000 | 1,122,444 |
Effect of dilutive potential restricted stock, RSUs and PUs (in shares) | 380,000 | 481,972 | 386,000 | 501,975 |
Weighted-average shares—diluted (in shares) | 293,527,000 | 292,487,234 | 293,288,000 | 292,166,419 |
Basic (in dollars per share) | $ 0 | $ 0.69 | $ 0.22 | $ 0.83 |
Diluted (in dollars per share) | $ 0 | $ 0.68 | $ 0.22 | $ 0.83 |
Antidilutive stock options, RSUs and PUs, excluded from the calculation (in shares) | 157,132 | 234,085 | 151,431 | 494,833 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 29, 2023 | Jan. 25, 2022 | Jun. 30, 2023 | Sep. 30, 2023 | |
Clutter Intermediate, Inc | Forecast | ||||
Business Acquisition [Line Items] | ||||
Equity interest expected to be sold | 15% | |||
Clutter Intermediate, Inc | ||||
Business Acquisition [Line Items] | ||||
Ownership acquired | 100% | |||
Purchase price | $ 59,100 | $ 59,627 | ||
ITRenew | ||||
Business Acquisition [Line Items] | ||||
Ownership acquired | 80% | |||
Business combination, price of acquisition, expected | $ 725,000 | |||
Operating expenditures | $ 59,370 |
Acquisitions - Schedule of Purc
Acquisitions - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 29, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Fair Value of Identifiable Assets Acquired | |||
Goodwill initially recorded | $ 4,928,145 | $ 4,882,734 | |
Proceeds from previous acquisition | 1,980 | ||
Cash paid for previous acquisition | 2,230 | ||
Clutter Intermediate, Inc | |||
Consideration paid for acquisitions | |||
Cash paid (gross of cash acquired) | 21,215 | ||
Deferred purchase obligation, purchase price holdbacks and other | 9,290 | ||
Fair Value of Previously Held Equity Interest | 9,000 | ||
Settlement of Pre-Existing Relationships | 20,122 | ||
Total Consideration | $ 59,100 | 59,627 | |
Fair Value of Identifiable Assets Acquired | |||
Fair Value of Identifiable Assets Acquired | 56,248 | ||
Fair Value of Identifiable Liabilities Assumed | (19,880) | ||
Total Fair Value of Identifiable Net Assets Acquired | 36,368 | ||
Goodwill initially recorded | $ 23,259 |
Acquisitions - Pro Forma Financ
Acquisitions - Pro Forma Financial Information (Details) - ITRenew - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Total Revenues | $ 1,289,534 | $ 2,555,554 |
Income from Continuing Operations | $ 201,858 | $ 243,696 |
Investments (Details)
Investments (Details) ₨ in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2023 USD ($) | Mar. 31, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jul. 07, 2023 USD ($) | Jul. 07, 2023 INR (₨) | Jun. 28, 2023 | Dec. 31, 2022 USD ($) | Dec. 31, 2022 INR (₨) | Feb. 28, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||||||||||
Gain on disposal | $ 35,821 | |||||||||
Clutter JV | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
EQUITY INTEREST | 0% | 0% | 27% | 26.73% | 26.73% | 27% | ||||
Gain on disposal | $ 35,800 | |||||||||
CARRYING VALUE | $ 0 | $ 0 | $ 54,172 | |||||||
Loss associated with the Clutter transactions | $ 38,000 | $ 38,000 | ||||||||
MakeSpace JV | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
EQUITY INTEREST | 49.99% | |||||||||
Gain on disposal | $ 35,800 | |||||||||
Web Werks JV | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
EQUITY INTEREST | 53.58% | 53.58% | 53.58% | 53.58% | ||||||
Equity method investments, fair value disclosure | $ 96,200 | ₨ 7,500,000 | ||||||||
CARRYING VALUE | $ 98,650 | $ 98,650 | $ 98,278 | |||||||
Web Werks JV | Subsequent Event | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
EQUITY INTEREST | 63.39% | 63.39% | ||||||||
Equity method investments, fair value disclosure | $ 45,300 | ₨ 3,750,000 | ||||||||
Joint venture with AGC Equity Partners (the "Frankfurt JV") | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
EQUITY INTEREST | 20% | 20% | 20% | 20% | ||||||
CARRYING VALUE | $ 59,394 | $ 59,394 | $ 37,194 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Apr. 30, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Interest rate swap agreements | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional amount | $ 350,000 | $ 350,000 | ||
Cumulative net gain in AOCI | 14,433 | |||
Interest Rate Swap, Terminated | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Cumulative net gain in AOCI | 7,581 | $ 10,100 | ||
Forward-Starting Interest Rate Swap | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional amount | 4,800 | $ 4,800 | ||
Cross-currency Swap Agreements | Net Investment Hedges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Notional amount | $ 469,200 | $ 469,200 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Net Assets (Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Apr. 30, 2023 | Dec. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative asset, current | $ 1,459 | $ 2,606 | |
Derivative asset, noncurrent | 26,827 | 48,790 | |
Derivative liability, noncurrent | $ 4,540 | ||
Derivative liability, noncurrent | 489 | ||
Derivative liability, statement of financial position [Extensible Enumeration] | Accrued expenses and other current liabilities (includes current portion of operating lease liabilities), Other Long-term Liabilities | ||
Derivative asset, current, statement of financial position [Extensible Enumeration] | Prepaid expenses and other | ||
Derivative liability, noncurrent, statement of financial position [Extensible Enumeration] | Other Long-term Liabilities | ||
Derivative asset, statement of financial position [Extensible Enumeration] | Prepaid expenses and other, Assets, Noncurrent, Excluding Property, Plant and Equipment, Net | ||
Derivative asset, noncurrent, statement of financial position [Extensible Enumeration] | Assets, Noncurrent, Excluding Property, Plant and Equipment, Net | ||
Cash Flow Hedges | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative Assets | $ 6,852 | 12,995 | |
Derivative Liabilities | 0 | 489 | |
Net Investment Hedges | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative Assets | 21,434 | 38,401 | |
Derivative Liabilities | 4,540 | $ 0 | |
Cumulative net gain in cross-currency swaps | 37,645 | ||
Interest rate swap agreements | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Cumulative net gain in AOCI | 14,433 | ||
Interest Rate Swap, Terminated | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Cumulative net gain in AOCI | 7,581 | $ 10,100 | |
Cross-currency swap agreements (excluded component) | Net Investment Hedges | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Cumulative net gain in cross-currency swaps | $ 20,751 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - (Losses) Gains (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Cross-currency swap agreements (excluded component) | ||||
Derivative [Line Items] | ||||
Net investment hedge, currency swap agreements | $ 5,817 | $ 0 | $ 11,651 | $ 0 |
Cross-currency swap agreements (excluded component) | Net Investment Hedges | ||||
Derivative [Line Items] | ||||
(Losses) gains recognized | (5,817) | 0 | (11,651) | 0 |
Designated as Hedging Instrument | Interest rate swap agreements | ||||
Derivative [Line Items] | ||||
Cash flow hedge, interest rate swap agreements | 7,896 | 3,932 | 4,454 | 15,402 |
Designated as Hedging Instrument | Interest rate swap agreements | Cash Flow Hedges | ||||
Derivative [Line Items] | ||||
(Losses) gains recognized | 2,527 | 0 | 2,527 | 0 |
Designated as Hedging Instrument | Cross-currency swap agreements | ||||
Derivative [Line Items] | ||||
Cross-currency swap agreements | $ (12,704) | $ 30,279 | $ (21,507) | $ 35,575 |
Debt (Details)
Debt (Details) - USD ($) | 6 Months Ended | |||
May 15, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||||
Debt (inclusive of discount) | $ 11,332,500,000 | $ 10,650,265,000 | ||
Net Deferred Financing Costs | (85,688,000) | (81,270,000) | ||
CARRYING AMOUNT | 11,246,812,000 | 10,568,995,000 | ||
Debt, current portion | (102,582,000) | (87,546,000) | ||
Unamortized debt issuance expense, net of current portion | 0 | 0 | ||
Carrying amount, current maturities | (102,582,000) | (87,546,000) | ||
Long term debt, gross, net of current portion | 11,229,918,000 | 10,562,719,000 | ||
Unamortized deferred financing costs, noncurrent | (85,688,000) | (81,270,000) | ||
Carrying amount, excluding current maturities | 11,144,230,000 | 10,481,449,000 | ||
Net proceeds from sale of senior note | 990,000,000 | $ 0 | ||
Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding | 40,410,000 | |||
Credit Agreement | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Debt (inclusive of discount) | 679,500,000 | 1,072,200,000 | ||
Net Deferred Financing Costs | (5,332,000) | (6,790,000) | ||
CARRYING AMOUNT | 674,168,000 | 1,065,410,000 | ||
FAIR VALUE | 679,500,000 | $ 1,072,200,000 | ||
Remaining capacity | $ 1,566,061,000 | |||
Weighted average interest rate (as a percent) | 7% | 6.20% | ||
Letters of credit outstanding | $ 4,439,000 | |||
Credit Agreement | UK Bilateral Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Debt (inclusive of discount) | 177,277,000 | $ 169,361,000 | ||
Net Deferred Financing Costs | 0 | 0 | ||
CARRYING AMOUNT | 177,277,000 | 169,361,000 | ||
FAIR VALUE | 177,277,000 | 169,361,000 | ||
Australian Dollar Term Loan | ||||
Debt Instrument [Line Items] | ||||
Debt (inclusive of discount) | 196,333,000 | 202,641,000 | ||
Net Deferred Financing Costs | (543,000) | (633,000) | ||
CARRYING AMOUNT | 195,790,000 | 202,008,000 | ||
FAIR VALUE | 198,005,000 | 204,623,000 | ||
Real Estate Mortgages, Financing Lease Liabilities and Other | ||||
Debt Instrument [Line Items] | ||||
Debt (inclusive of discount) | 457,724,000 | 425,777,000 | ||
Net Deferred Financing Costs | (483,000) | (578,000) | ||
CARRYING AMOUNT | 457,241,000 | 425,199,000 | ||
FAIR VALUE | 457,724,000 | 425,777,000 | ||
Term Loan A | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Debt (inclusive of discount) | 234,375,000 | 240,625,000 | ||
Net Deferred Financing Costs | 0 | 0 | ||
CARRYING AMOUNT | 234,375,000 | 240,625,000 | ||
FAIR VALUE | 234,375,000 | 240,625,000 | ||
Term Loan B | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Debt (inclusive of discount) | 662,685,000 | 666,073,000 | ||
Net Deferred Financing Costs | (3,122,000) | (3,747,000) | ||
CARRYING AMOUNT | 659,563,000 | 662,326,000 | ||
FAIR VALUE | $ 663,250,000 | 666,750,000 | ||
37/8% GBP Senior Notes due 2025 (the "GBP Notes") | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 3.875% | |||
Debt (inclusive of discount) | $ 506,506,000 | 483,888,000 | ||
Net Deferred Financing Costs | (2,231,000) | (2,589,000) | ||
CARRYING AMOUNT | 504,275,000 | 481,299,000 | ||
FAIR VALUE | $ 472,474,000 | 445,206,000 | ||
47/8% Senior Notes due 2027 (the "47/8% Notes due 2027") | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 4.875% | |||
Debt (inclusive of discount) | $ 1,000,000,000 | 1,000,000,000 | ||
Net Deferred Financing Costs | (6,043,000) | (6,754,000) | ||
CARRYING AMOUNT | 993,957,000 | 993,246,000 | ||
FAIR VALUE | $ 932,500,000 | 917,500,000 | ||
51/4% Senior Notes due 2028 (the “51/4% Notes due 2028”) | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 5.25% | |||
Debt (inclusive of discount) | $ 825,000,000 | 825,000,000 | ||
Net Deferred Financing Costs | (5,609,000) | (6,200,000) | ||
CARRYING AMOUNT | 819,391,000 | 818,800,000 | ||
FAIR VALUE | $ 770,344,000 | 754,875,000 | ||
5% Senior Notes due 2028 (the “5% Notes due 2028”) | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 5% | |||
Debt (inclusive of discount) | $ 500,000,000 | 500,000,000 | ||
Net Deferred Financing Costs | (3,678,000) | (4,039,000) | ||
CARRYING AMOUNT | 496,322,000 | 495,961,000 | ||
FAIR VALUE | $ 461,250,000 | 450,000,000 | ||
7% Senior Notes due 2029 (the "7% Notes due 2029") | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 7% | |||
Debt (inclusive of discount) | $ 1,000,000,000 | 0 | ||
Net Deferred Financing Costs | (11,853,000) | 0 | ||
CARRYING AMOUNT | 988,147,000 | 0 | ||
FAIR VALUE | $ 992,500,000 | 0 | ||
Principal amount | $ 1,000,000,000 | |||
Net proceeds from sale of senior note | $ 990,000,000 | |||
Principal amount percentage | 100% | |||
47/8% Senior Notes due 2029 (the “47/8% Notes due 2029”) | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 4.875% | |||
Debt (inclusive of discount) | $ 1,000,000,000 | 1,000,000,000 | ||
Net Deferred Financing Costs | (9,041,000) | (9,764,000) | ||
CARRYING AMOUNT | 990,959,000 | 990,236,000 | ||
FAIR VALUE | $ 892,500,000 | 865,000,000 | ||
51/4% Senior Notes due 2030 (the “51/4 Notes due 2030”) | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 5.25% | |||
Debt (inclusive of discount) | $ 1,300,000,000 | 1,300,000,000 | ||
Net Deferred Financing Costs | (10,655,000) | (11,407,000) | ||
CARRYING AMOUNT | 1,289,345,000 | 1,288,593,000 | ||
FAIR VALUE | $ 1,166,750,000 | 1,111,500,000 | ||
41/2% Senior Notes due 2031 (the “41/2% Notes”) | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 4.50% | |||
Debt (inclusive of discount) | $ 1,100,000,000 | 1,100,000,000 | ||
Net Deferred Financing Costs | (9,539,000) | (10,161,000) | ||
CARRYING AMOUNT | 1,090,461,000 | 1,089,839,000 | ||
FAIR VALUE | $ 940,500,000 | 891,000,000 | ||
5% Senior Notes due 2032 (the "5% Notes due 2032") | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 5% | |||
Debt (inclusive of discount) | $ 750,000,000 | 750,000,000 | ||
Net Deferred Financing Costs | (11,858,000) | (12,511,000) | ||
CARRYING AMOUNT | 738,142,000 | 737,489,000 | ||
FAIR VALUE | $ 645,000,000 | 622,500,000 | ||
55/8% Senior Notes due 2032 (the "55/8% Notes") | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 5.625% | |||
Debt (inclusive of discount) | $ 600,000,000 | 600,000,000 | ||
Net Deferred Financing Costs | (5,275,000) | (5,566,000) | ||
CARRYING AMOUNT | 594,725,000 | 594,434,000 | ||
FAIR VALUE | 535,500,000 | 520,500,000 | ||
Accounts Receivable Securitization Program | ||||
Debt Instrument [Line Items] | ||||
Debt (inclusive of discount) | 343,100,000 | 314,700,000 | ||
Net Deferred Financing Costs | (426,000) | (531,000) | ||
CARRYING AMOUNT | 342,674,000 | 314,169,000 | ||
FAIR VALUE | $ 343,100,000 | $ 314,700,000 |
Debt - Accounts Receivable Secu
Debt - Accounts Receivable Securitization Program Narrative (Details) - USD ($) | Jun. 30, 2023 | Jun. 08, 2023 | Jun. 07, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||||
Outstanding borrowings | $ 11,332,500,000 | $ 10,650,265,000 | ||
Accounts Receivable Securitization Program | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 360,000,000 | $ 325,000,000 | ||
Outstanding borrowings | $ 343,100,000 | $ 314,700,000 | ||
Effective interest rate (as a percent) | 6.20% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Insurance settlement | |
Commitments and Contingencies | |
Reasonably possible additional losses | $ 18,000 |
Stockholders' Equity Matters (D
Stockholders' Equity Matters (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||||||||||
Aug. 03, 2023 | Jul. 06, 2023 | May 04, 2023 | Apr. 05, 2023 | Feb. 23, 2023 | Jan. 05, 2023 | Nov. 03, 2022 | Oct. 04, 2022 | Aug. 04, 2022 | Jul. 06, 2022 | Apr. 28, 2022 | Apr. 06, 2022 | Feb. 24, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Debt Instrument [Line Items] | |||||||||||||||||
Dividend per share (in dollars per share) | $ 0.6185 | $ 0.6185 | $ 0.6185 | $ 0.6185 | $ 0.6185 | $ 0.6185 | |||||||||||
TOTAL AMOUNT | $ 180,339 | $ 179,866 | $ 179,790 | $ 179,781 | $ 179,661 | $ 182,113 | $ 181,197 | $ 365,385 | $ 362,220 | ||||||||
Subsequent Event | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Dividend per share (in dollars per share) | $ 0.65 | ||||||||||||||||
TOTAL AMOUNT | $ 180,493 |
Segment Information - Segment R
Segment Information - Segment Reporting Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Total Revenues | $ 1,357,936 | $ 1,289,534 | $ 2,672,285 | $ 2,537,580 |
Adjusted EBITDA | 475,658 | 454,706 | 936,466 | 885,700 |
Global RIM Business | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 1,159,867 | 1,070,476 | 2,286,393 | 2,119,367 |
Adjusted EBITDA | 499,062 | 469,368 | 976,846 | 918,163 |
Global Data Center Business | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 118,033 | 100,088 | 230,338 | 197,075 |
Adjusted EBITDA | 53,809 | 42,307 | 104,444 | 84,284 |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 80,036 | 118,970 | 155,554 | 221,138 |
Adjusted EBITDA | $ (77,213) | $ (56,969) | $ (144,824) | $ (116,747) |
Segment Information - Reconcili
Segment Information - Reconciliation to of Net Income to Adjusted EBITDA (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Reconciliation to of Net Income to Adjusted EBITDA | ||||
Net Income (Loss) | $ 1,143 | $ 201,858 | $ 66,678 | $ 243,565 |
Interest expense, net | 144,178 | 115,057 | 281,347 | 229,499 |
Provision (benefit) for income taxes | 4,255 | 18,083 | 21,013 | 28,163 |
Depreciation and amortization | 195,367 | 178,254 | 377,461 | 361,869 |
Acquisition and Integration Costs | 1,511 | 16,878 | 3,106 | 32,539 |
Restructuring and other transformation | 45,588 | 0 | 82,501 | 0 |
(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate) | (1,505) | (51,249) | (14,566) | (51,954) |
Other expense (income), net, excluding our share of losses (gains) from our unconsolidated joint ventures | 58,694 | (46,103) | 76,185 | 7,412 |
Stock-based compensation expense | 22,373 | 20,256 | 34,882 | 31,597 |
Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures | 4,054 | 1,672 | 7,859 | 3,010 |
Adjusted EBITDA | $ 475,658 | $ 454,706 | $ 936,466 | $ 885,700 |
Segment Information - Revenues
Segment Information - Revenues by Product and Service Lines by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Total Revenues | $ 1,357,936 | $ 1,289,534 | $ 2,672,285 | $ 2,537,580 |
GLOBAL RIM BUSINESS | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 1,159,867 | 1,070,476 | 2,286,393 | 2,119,367 |
GLOBAL DATA CENTER BUSINESS | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 118,033 | 100,088 | 230,338 | 197,075 |
CORPORATE AND OTHER | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 80,036 | 118,970 | 155,554 | 221,138 |
Records Management | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 936,043 | 855,134 | 1,838,379 | 1,689,585 |
Records Management | GLOBAL RIM BUSINESS | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 898,634 | 818,993 | 1,766,622 | 1,621,546 |
Records Management | GLOBAL DATA CENTER BUSINESS | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 0 | 0 | 0 | 0 |
Records Management | CORPORATE AND OTHER | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 37,409 | 36,141 | 71,757 | 68,039 |
Data Management | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 130,251 | 124,394 | 259,845 | 258,050 |
Data Management | GLOBAL RIM BUSINESS | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 130,251 | 124,394 | 259,845 | 258,050 |
Data Management | GLOBAL DATA CENTER BUSINESS | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 0 | 0 | 0 | 0 |
Data Management | CORPORATE AND OTHER | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 0 | 0 | 0 | 0 |
Information Destruction | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 173,609 | 209,918 | 343,723 | 392,870 |
Information Destruction | GLOBAL RIM BUSINESS | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 130,982 | 127,089 | 259,926 | 239,771 |
Information Destruction | GLOBAL DATA CENTER BUSINESS | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 0 | 0 | 0 | 0 |
Information Destruction | CORPORATE AND OTHER | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 42,627 | 82,829 | 83,797 | 153,099 |
Data Center | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 118,033 | 100,088 | 230,338 | 197,075 |
Data Center | GLOBAL RIM BUSINESS | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 0 | 0 | 0 | 0 |
Data Center | GLOBAL DATA CENTER BUSINESS | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | 118,033 | 100,088 | 230,338 | 197,075 |
Data Center | CORPORATE AND OTHER | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Related Party Transaction [Line Items] | ||||
Total Revenues | $ 1,357,936 | $ 1,289,534 | $ 2,672,285 | $ 2,537,580 |
Co-venturer | Frankfurt JV | ||||
Related Party Transaction [Line Items] | ||||
Total Revenues | 800 | 5,700 | 1,700 | 12,800 |
Co-venturer | MakeSpace JV and Clutter JV | ||||
Related Party Transaction [Line Items] | ||||
Total Revenues | $ 7,000 | $ 7,400 | $ 13,000 | $ 14,400 |
Restructuring And Other Trans_3
Restructuring And Other Transformation - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other transformation | $ 45,588,000 | $ 0 | $ 82,501,000 | $ 0 | ||
Accrued restructuring | 7,400,000 | 7,400,000 | $ 7,400,000 | |||
Other Restructuring | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Accrued transformation costs | 22,200,000 | 22,200,000 | 22,200,000 | |||
Project Matterhorn | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected cost | $ 150,000 | |||||
Restructuring and other transformation | $ 45,588,000 | $ 0 | $ 82,501,000 | $ 0 | $ 124,434,000 |
Restructuring And Other Trans_4
Restructuring And Other Transformation - Restructuring Charges (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and other transformation | $ 45,588,000 | $ 0 | $ 82,501,000 | $ 0 | |
Project Matterhorn | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring | 16,127,000 | 28,084,000 | $ 41,376,000 | ||
Other transformation | 29,461,000 | 54,417,000 | 83,058,000 | ||
Restructuring and other transformation | 45,588,000 | $ 0 | 82,501,000 | $ 0 | 124,434,000 |
GLOBAL RIM BUSINESS | Project Matterhorn | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring | 15,000,000 | 24,525,000 | 37,608,000 | ||
Other transformation | 4,958,000 | 8,443,000 | 12,344,000 | ||
GLOBAL DATA CENTER BUSINESS | Project Matterhorn | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring | 0 | 78,000 | 78,000 | ||
Other transformation | 498,000 | 1,368,000 | 1,426,000 | ||
CORPORATE AND OTHER | Project Matterhorn | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring | 1,127,000 | 3,481,000 | 3,690,000 | ||
Other transformation | $ 24,005,000 | $ 44,606,000 | $ 69,288,000 |