Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 000-31293 | |
Entity Registrant Name | EQUINIX, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0487526 | |
Entity Address, Address Line One | One Lagoon Drive | |
Entity Address, City or Town | Redwood City | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94065 | |
City Area Code | 650 | |
Local Phone Number | 598-6000 | |
Title of 12(b) Security | Common Stock, $0.001 | |
Trading Symbol | EQIX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 88,557,118 | |
Entity Central Index Key | 0001101239 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 4,785,050 | $ 1,869,577 |
Short-term investments | 22,069 | 10,362 |
Accounts receivable, net of allowance for doubtful accounts of $20,903 and $13,026 | 691,589 | 689,134 |
Other current assets | 330,521 | 302,880 |
Assets held for sale | 152,188 | 663 |
Total current assets | 5,981,417 | 2,872,616 |
Property, plant and equipment, net | 12,663,827 | 12,152,597 |
Operating lease right-of-use assets | 1,396,101 | 1,475,367 |
Goodwill | 5,016,350 | 4,781,858 |
Intangible assets, net | 2,074,689 | 2,102,389 |
Other assets | 660,246 | 580,788 |
Total assets | 27,792,630 | 23,965,615 |
Current liabilities: | ||
Accounts payable and accrued expenses | 745,517 | 760,718 |
Accrued property, plant and equipment | 335,013 | 301,535 |
Current portion of operating lease liabilities | 139,833 | 145,606 |
Current portion of finance lease liabilities | 102,416 | 75,239 |
Current portion of mortgage and loans payable | 75,589 | 77,603 |
Current portion of senior notes | 2,227,768 | 643,224 |
Other current liabilities | 229,635 | 153,938 |
Total current liabilities | 3,855,771 | 2,157,863 |
Operating lease liabilities, less current portion | 1,243,362 | 1,315,656 |
Finance lease liabilities, less current portion | 1,658,432 | 1,430,882 |
Mortgage and loans payable, less current portion | 1,218,049 | 1,289,434 |
Senior notes, less current portion | 8,804,633 | 8,309,673 |
Other liabilities | 624,125 | 621,725 |
Total liabilities | 17,404,372 | 15,125,233 |
Commitments and contingencies (Note 11) | ||
Equinix stockholders' equity | ||
Common stock, $0.001 par value per share: 300,000,000 shares authorized; 88,890,679 issued and 88,549,394 outstanding in 2020 and 85,700,953 issued and 85,308,386 outstanding in 2019 | 89 | 86 |
Additional paid-in capital | 14,651,944 | 12,696,433 |
Treasury stock, at cost; 341,285 shares in 2020 and 392,567 shares in 2019 | (127,042) | (144,256) |
Accumulated dividends | (4,639,041) | (4,168,469) |
Accumulated other comprehensive loss | (1,140,291) | (934,613) |
Retained earnings | 1,642,621 | 1,391,425 |
Total Equinix stockholders' equity | 10,388,280 | 8,840,606 |
Non-controlling interests | (22) | (224) |
Total stockholders' equity | 10,388,258 | 8,840,382 |
Total liabilities and stockholders' equity | $ 27,792,630 | $ 23,965,615 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 20,903 | $ 13,026 |
Common stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 88,890,679 | 85,700,953 |
Common stock, shares outstanding (in shares) | 88,549,394 | 85,308,386 |
Treasury stock, at cost (shares) | 341,285 | 392,567 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenues | $ 1,470,121 | $ 1,384,977 | $ 2,914,663 | $ 2,748,195 |
Costs and operating expenses: | ||||
Cost of revenues | 739,344 | 698,179 | 1,475,626 | 1,380,209 |
Sales and marketing | 178,124 | 159,201 | 358,574 | 328,916 |
General and administrative | 256,890 | 232,656 | 518,487 | 447,702 |
Transaction costs | 13,617 | 2,774 | 25,147 | 5,245 |
Impairment charges | 0 | 386 | 0 | 14,834 |
(Gain) loss on asset sales | (342) | 0 | 857 | 0 |
Total costs and operating expenses | 1,187,633 | 1,093,196 | 2,378,691 | 2,176,906 |
Income from operations | 282,488 | 291,781 | 535,972 | 571,289 |
Interest income | 1,685 | 7,762 | 5,958 | 11,964 |
Interest expense | (108,480) | (120,547) | (215,818) | (243,393) |
Other income | 4,278 | 12,180 | 9,448 | 12,014 |
Loss on debt extinguishment | (1,868) | 0 | (8,309) | (382) |
Income before income taxes | 178,103 | 191,176 | 327,251 | 351,492 |
Income tax expense | (44,753) | (47,324) | (74,944) | (89,893) |
Net income | 133,350 | 143,852 | 252,307 | 261,599 |
Net (income) loss attributable to non-controlling interests | (46) | (325) | (211) | 6 |
Net income attributable to Equinix | $ 133,304 | $ 143,527 | $ 252,096 | $ 261,605 |
Earnings per share (EPS) attributable to Equinix: | ||||
Basic EPS (in dollars per share) | $ 1.53 | $ 1.70 | $ 2.92 | $ 3.15 |
Weighted-average shares for basic EPS (in shares) | 87,303 | 84,399 | 86,427 | 83,114 |
Diluted EPS (in dollars per share) | $ 1.52 | $ 1.69 | $ 2.90 | $ 3.13 |
Weighted-average shares for diluted EPS (in shares) | 87,901 | 84,767 | 87,065 | 83,471 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 133,350 | $ 143,852 | $ 252,307 | $ 261,599 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment (CTA) gain (loss), net of tax effects of $0, $(585), $0 and $(595) | 181,286 | 25,127 | (232,506) | (56,592) |
Net investment hedge CTA gain (loss), net of tax effect of $0, $0, $0, and $10 | (97,058) | (37,857) | 47,888 | 38,993 |
Unrealized gain (loss) on cash flow hedges, net of tax effects of $4,772, $650, $(1,595) and $(2,091) | (17,868) | (3,355) | (21,124) | 4,869 |
Net actuarial gain (loss) on defined benefit plans, net of tax effects of $(6), $2, $3 and $1 | 20 | (7) | 55 | (18) |
Total other comprehensive income (loss), net of tax | 66,380 | (16,092) | (205,687) | (12,748) |
Comprehensive income, net of tax | 199,730 | 127,760 | 46,620 | 248,851 |
Net (income) loss attributable to non-controlling interests | (46) | (325) | (211) | 6 |
Other comprehensive (income) loss attributable to non-controlling interests | (2) | 14 | 9 | 7 |
Comprehensive income attributable to Equinix | $ 199,682 | $ 127,449 | $ 46,418 | $ 248,864 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustment (CTA) gain (loss), tax | $ 0 | $ (585) | $ 0 | $ (595) |
Unrealized gain (loss) on cash flow hedges, tax | 4,772 | 650 | (1,595) | (2,091) |
Net investment hedge CTA gain (loss) tax effect | 0 | 0 | 0 | 10 |
Net actuarial gain on defined benefit plans, tax | $ (6) | $ 2 | $ 3 | $ 1 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 252,307 | $ 261,599 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 586,609 | 533,650 |
Stock-based compensation | 140,343 | 110,542 |
Amortization of intangible assets | 97,853 | 98,752 |
Amortization of debt issuance costs and debt discounts and premiums | 7,904 | 6,233 |
Provision for allowance for doubtful accounts | 11,496 | 7,097 |
Impairment charges | 0 | 14,834 |
Loss on asset sales | 857 | 0 |
Loss on debt extinguishment | 8,309 | 382 |
Other items | 10,654 | 8,725 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (14,233) | (126,720) |
Income taxes, net | 11,861 | 30,662 |
Other assets | (60,019) | (5,724) |
Operating lease right-of-use assets | 76,292 | 78,483 |
Operating lease liabilities | (72,091) | (73,805) |
Accounts payable and accrued expenses | (25,564) | (3,987) |
Other liabilities | 58,938 | 23,341 |
Net cash provided by operating activities | 1,091,516 | 964,064 |
Cash flows from investing activities: | ||
Purchases of investments | (52,415) | (20,787) |
Sales of investments | 12,134 | 8,945 |
Business acquisitions, net of cash and restricted cash acquired | (478,248) | (34,143) |
Purchases of real estate | (82,567) | (47,436) |
Purchases of other property, plant and equipment | (882,889) | (808,138) |
Net cash used in investing activities | (1,483,985) | (901,559) |
Cash flows from financing activities: | ||
Proceeds from employee equity awards | 30,391 | 27,593 |
Payment of dividends and special distribution | (469,487) | (413,052) |
Proceeds from public offering of common stock, net of issuance costs | 1,784,898 | 1,561,555 |
Proceeds from senior notes, net of debt discounts | 2,585,736 | 0 |
Proceeds from mortgage and loans payable | 750,790 | 0 |
Repayments of finance lease liabilities | (42,681) | (43,112) |
Repayments of mortgage and loans payable | (789,178) | (36,212) |
Repayment of senior notes | (493,711) | (150,000) |
Debt extinguishment costs | (4,619) | 0 |
Debt issuance costs | (26,266) | 0 |
Net cash provided by financing activities | 3,325,873 | 946,772 |
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash | (12,876) | 411 |
Net increase in cash, cash equivalents and restricted cash | 2,920,528 | 1,009,688 |
Cash, cash equivalents and restricted cash at beginning of period | 1,886,613 | 627,604 |
Cash, cash equivalents and restricted cash at end of period | 4,807,141 | 1,637,292 |
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows | $ 4,807,141 | $ 1,637,292 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared by Equinix, Inc. ("Equinix" or the "Company") and reflect all adjustments, consisting only of normal recurring adjustments, which in the opinion of management are necessary to fairly state the financial position and the results of operations for the interim periods presented. The condensed consolidated balance sheet data as of December 31, 2019 has been derived from audited consolidated financial statements as of that date. The condensed consolidated financial statements have been prepared in accordance with the regulations of the Securities and Exchange Commission ("SEC"), but omit certain information and footnote disclosure necessary to present the statements in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). For further information, refer to the Consolidated Financial Statements and Notes thereto included in Equinix's Form 10-K as filed with the SEC on February 21, 2020. Results for the interim periods are not necessarily indicative of results for the entire fiscal year. Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Equinix and its subsidiaries, including the acquisitions of Packet Host, Inc. from March 2, 2020, three data centers in Mexico acquired from Axtel S.A.B. de C.V from January 8, 2020, and Switch Datacenters' AMS1 data center business in Amsterdam, Netherlands from April 18, 2019. All intercompany accounts and transactions have been eliminated in consolidation. Income Taxes The Company elected to be taxed as a real estate investment trust for U.S. federal income tax purposes ("REIT") beginning with its 2015 taxable year. As a result, the Company may deduct the distributions made to its stockholders from taxable income generated by the Company and its qualified REIT subsidiaries ("QRSs"). The Company's dividends paid deduction generally eliminates the U.S. federal taxable income of the Company and its QRSs, resulting in no U.S. federal income tax due. However, the Company's domestic taxable REIT subsidiaries ("TRSs") are subject to U.S. corporate income taxes on any taxable income generated by them. In addition, the foreign operations of the Company are subject to local income taxes regardless of whether the foreign operations are operated as QRSs or TRSs. The Company provides for income taxes during interim periods based on the estimated effective tax rate for the year. The effective tax rate is subject to change in the future due to various factors such as the operating performance of the Company, tax law changes and future business acquisitions. The Company's effective tax rates were 22.9% and 25.6% for the six months ended June 30, 2020 and 2019 , respectively. Coronavirus (COVID-19) Update In December 2019, a novel strain of coronavirus, referred to as Coronavirus disease 2019, or COVID-19, emerged. On February 29, 2020, the World Health Organization ("WHO") raised the COVID-19 threat from high to very high, and on March 11, 2020, the WHO characterized COVID-19 as a global pandemic. During the six months ended June 30, 2020, the COVID-19 pandemic did not have a material impact on the Company’s financial statements. The Company recorded an insignificant amount of revenue reserve related to COVID-19 and experienced some decline in non-recurring revenue from Smart Hands services, as the Company waived fees from affected customers in certain circumstances. The Company has seen a modest but mixed impact from COVID-19 to its operating costs. The Company incurred one-time cash bonuses and compensation expense of $8.6 million for its IBX employees and other employees to support their work-from-home requirements. Additionally, the Company increased its allowance for doubtful accounts for accounts receivable by $6.3 million during the six months ended June 30, 2020. This is partially offset by lower travel expenses due to travel restrictions imposed due to COVID-19. The Company evaluated its goodwill, long-lived assets, including property, plant and equipment, lease right-of-use assets and intangible assets, noting no indicators of impairment. The impact that COVID-19 will have on the Company's consolidated financial statements throughout 2020 remains uncertain and ultimately will be dictated by the length and severity of the pandemic, impact on customers and vendors, as well as the economic recovery and federal, state and local government actions taken in response. The Company will continue to evaluate the nature and extent of these potential impacts to its business and consolidated financial statements. Recent Accounting Pronouncements Accounting Standards Not Yet Adopted In December 2019, Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, Income Taxes ("Topic 740"): Simplifying the Accounting for Income T axes. The ASU simplifies accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The ASU also improves consistent application of and simplifies generally accepted accounting principles ("GAAP") for other areas of Topic 740 by clarifying and amending existing guidance. For public entities, the ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted including adoption in any interim period for periods for which financial statements have not yet been issued. The Company is currently evaluating the extent of the impact that the adoption of this standard will have on its condensed consolidated financial statements. Accounting Standards Adopted In March 2020, FASB issued ASU 2020-04, Reference Rate Reform ("Topic 848"): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The ASU provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The Company adopted the ASU upon its issuance and there was no impact on the Company's condensed consolidated financial statements for the six months ended June 30, 2020 as a result of adopting this standard. The Company will evaluate its debt, derivative and lease contracts that are eligible for modification relief and may apply the elections prospectively as needed. In June 2016, FASB issued ASU 2016-13, Financial Instruments - Credit Losses ("Topic 326"): Measurement of Credit Losses on Financial Instruments. The ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The ASU requires enhanced qualitative and quantitative disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization's portfolio. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Company adopted this new ASU on January 1, 2020 using the modified retrospective approach and recorded a net decrease to retained earnings of $0.9 million and a corresponding increase to allowance for doubtful accounts. The adoption did not have any significant impact on other financial assets within the scope of ASC 326, such as contract asset. Accounts Receivable Accounts receivables are recorded at invoice amount and are generally due in less than one year. Allowance for doubtful accounts are estimated losses resulting from the inability of customers making payments. An estimate of uncollectible amounts is made based on historical bad debts, age of customer receivable balances, customers' financial conditions, the impact of current and expected future economic conditions, inclusive of the effect of the COVID-19 pandemic on credit losses. The following table summarizes the activity of the Company's allowance for doubtful accounts (in thousands): Balance at December 31, 2019 $ 13,026 Adjustments due to adoption of ASU 2016-13 900 Provision for allowance for doubtful accounts (1) 11,496 Net write-offs and recoveries (4,519 ) Balance at June 30, 2020 $ 20,903 (1) During the six months ended June 30, 2020, the Company recorded a provision for allowance for doubtful accounts of $6.3 million |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Contract Balances The following table summarizes the opening and closing balances of the Company's accounts receivable, net; contract asset, current; contract asset, non-current; deferred revenue, current; and deferred revenue, non-current (in thousands): Accounts receivable, net Contract asset, current Contract asset, non-current Deferred revenue, current Deferred revenue, non-current Beginning balances as of January 1, 2020 $ 689,134 $ 10,033 $ 31,521 $ 76,193 $ 46,555 Closing balances as of June 30, 2020 691,589 10,688 47,194 84,709 48,140 Increase $ 2,455 $ 655 $ 15,673 $ 8,516 $ 1,585 The difference between the opening and closing balances of the Company's accounts receivable, net, contract assets and deferred revenues primarily results from revenue growth and the timing difference between the satisfaction of the Company's performance obligation and the customer's payment, as well as business combinations closed during the six months ended June 30, 2020 . The amounts of revenue recognized during the six months ended June 30, 2020 from the opening deferred revenue balance as of January 1, 2020 was $56.5 million . Remaining performance obligations As of June 30, 2020 , approximately $7.3 billion of total revenues, including deferred installation revenues, are expected to be recognized in future periods, the majority of which will be recognized over the next 24 months . While initial contract terms vary in length, substantially all contracts thereafter automatically renew in one-year increments. Included in the remaining performance obligations is either 1) remaining performance obligations under the initial contract terms or 2) remaining performance obligations related to contracts in the renewal period once the initial terms have lapsed. The remaining performance obligations do not include variable consideration related to unsatisfied performance obligations such as the usage of metered power, service fees from xScale TM data centers, which are calculated based on future events or actual costs incurred in the future, or any contracts that could be terminated without any significant penalties such as the majority of interconnection revenues. The remaining performance obligations above include revenues to be recognized in the future related to arrangements where the Company is considered the lessor. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share ("EPS") for the periods presented (in thousands, except per share amounts): Three Months Ended Six Months Ended 2020 2019 2020 2019 Net income $ 133,350 $ 143,852 $ 252,307 $ 261,599 Net (income) loss attributable to non-controlling interests (46 ) (325 ) (211 ) 6 Net income attributable to Equinix $ 133,304 $ 143,527 $ 252,096 $ 261,605 Weighted-average shares used to calculate basic EPS 87,303 84,399 86,427 83,114 Effect of dilutive securities: Employee equity awards 598 368 638 357 Weighted-average shares used to calculate diluted EPS 87,901 84,767 87,065 83,471 EPS attributable to Equinix: Basic EPS $ 1.53 $ 1.70 $ 2.92 $ 3.15 Diluted EPS $ 1.52 $ 1.69 $ 2.90 $ 3.13 The Company has excluded common stock related to employee equity awards in the diluted EPS calculation above of approximately 31,000 shares and 4,000 shares for the three months ended June 30, 2020 and 2019 , respectively, and approximately 23,000 and 54,000 shares for the six months ended June 30, 2020 and 2019 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions 2020 Acquisitions On March 2, 2020, the Company acquired all outstanding shares and equity awards of Packet Host, Inc. (“Packet”), a leading bare metal automation platform for a total purchase consideration of approximately $290.3 million in cash. In addition, the Company paid $16.1 million in cash to accelerate the vesting of unvested Packet equity awards for certain Packet employees, which was recorded as stock-based compensation expense during the three months ended March 31, 2020. In connection with the acquisition, the Company also issued restricted stock awards with an aggregated fair value of $30.2 million and a three -year vesting period, which will be recognized as stock-based compensation costs over the vesting period. The acquisition, combined with the Company’s o wn organic bare metal service in development, is expected to accelerate Equinix's strategy to help enterprises deploy hybrid multicloud architectures on Equinix's data center platform. On January 8, 2020, the Company completed the acquisition of three data centers in Mexico from Axtel S.A.B. de C.V. (“Axtel”) for a total purchase consideration of approximately $189.0 million , including $175.0 million in cash and $14.0 million the Company paid to the seller for recoverable value-added taxes ("VAT") incurred prior to the acquisition, which related to a corresponding VAT receivable acquired upon acquisition. The acquisition supports the Company’s ongoing expansion to meet customer demand in the Americas region. Both acquisitions constitute a business under the accounting standard for business combinations and, therefore, were accounted for as business combinations using the acquisition method of accounting. Under the acquisition method of accounting, the total purchase price is allocated to the assets acquired and liabilities assumed measured at fair value on the date of acquisition. As of June 30, 2020 , the Company had not completed the detailed valuation analysis to derive the fair value of assets acquired and liabilities assumed from either acquisition, including property, plant and equipment, intangible assets and the related tax impacts; therefore, the purchase price allocation is based on provisional estimates and subject to continuing management analysis. During the three months ended June 30, 2020 , the Company updated the preliminary allocation of purchase price for the Packet acquisition from the provisional amounts reported as of March 31, 2020. The adjustments made during the three months ended June 30, 2020 primarily resulted in a decrease in intangible assets and an increase in goodwill of $5.9 million and $4.5 million , respectively. The changes in fair value of acquired assets and liabilities assumed did not have a significant impact on the Company's results of operations for any reporting periods prior to June 30, 2020. No purchase price allocation adjustments were made during the three months ended June 30, 2020 for the Axtel acquisition. A summary of the preliminary allocation of total purchase consideration is presented as follows (in thousands): Packet Axtel Cash and cash equivalents $ 1,068 $ — Accounts receivable 5,073 — Other current assets 117 14,048 Property, plant and equipment 27,945 76,407 Operating lease right-of-use assets 1,519 1,646 Intangible assets 62,700 22,750 Goodwill 227,602 78,902 Other assets 138 — Total assets acquired 326,162 193,753 Accounts payable and accrued liabilities (1,001 ) (238 ) Other current liabilities (860 ) — Operating lease liabilities (1,519 ) (1,586 ) Finance lease liabilities (27,945 ) — Other liabilities — (162 ) Deferred tax liabilities (4,539 ) (2,749 ) Net assets acquired $ 290,298 $ 189,018 The following table presents certain information on the acquired intangible assets (in thousands): Intangible Assets Fair Value Estimated Useful Lives (Years) Weighted-average Estimated Useful Lives (Years) Packet: Trade names $ 1,600 3.0 3.0 Existing technology 5,100 3.0 3.0 Customer relationships 56,000 10.0 10.0 Axtel: Customer relationships 22,750 15.0 15.0 The fair value of the Packet trade name was estimated using the relief from royalty method under the income approach. The Company applied a relief from royalty rate of 1.0% and a discount rate of 8.0% . The fair value of existing technology was estimated under the cost approach by projecting the cost to recreate a new asset with an equivalent utility of the existing technology. The key assumptions of the cost approach include total cost, time to recreate and functional obsolescence. The fair value of customer relationships acquired from Packet and Axtel was estimated by applying an income approach, by calculating the present value of estimated future operating cash flows generated from existing customers less costs to realize the revenue. The Company applied a discount rate of 8.0% for Packet and 13.3% for Axtel, which reflects the nature of the assets as they relate to the risk and uncertainty of the estimated future operating cash flows, as well as the risk of the country within which the acquired business operates. The fair value of property, plant and equipment was estimated by applying the cost approach, with the exception of land, which was estimated by applying the market approach. The key assumptions of the cost approach include replacement cost new, physical deterioration, functional and economic obsolescence, economic useful life, remaining useful life, age and effective age. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and liabilities assumed. Goodwill is attributable to the workforce of the acquired business and the projected revenue increase expected to arise from future customers after the Packet and Axtel acquisitions. Goodwill from both acquisitions is not amortizable for local tax purposes and is attributable to the Company's Americas region. The Company incurred transaction costs of approximately $10.5 million during the six months ended June 30, 2020 and an insignificant amount of transaction costs during the three months ended June 30, 2020 for both the Packet and Axtel acquisitions combined. The operating results of both acquisitions are report ed in the Americas region following the date of acquisition. During the three months ended June 30, 2020 , the Company's results of operations include $13.3 million of revenues and $7.0 million of net loss from operations from the combined operations of Packet and Axtel. During the six months ended June 30, 2020 , the Company's results of operations include $21.5 million of revenues and $20.3 million of net loss from operations from the combined operations of Packet and Axtel. The net loss was primarily attributable to the $16.1 million stock-based compensation expense incurred to accelerate the vesting of certain Packet employees’ unvested Packet equity awards at the close of the Packet acquisition. Pending Acquisition of Bell Data Centers (the "Bell Acquisition") On May 29, 2020, the Company entered into an agreement to purchase a portfolio of 13 data center sites across Canada from BCE Inc. ("Bell") for approximately $750.0 million in an all-cash transaction. The Bell Acquisition is expected to close in the fourth quarter of 2020, subject to customary closing conditions including regulatory approval. Upon the close of the acquisition, the operating results of the acquisition will be reported in the Americas region. 2019 Acquisition On April 18, 2019, the Company completed the acquisition of Switch Datacenters' AMS1 data center business in Amsterdam, Netherlands, for a cash purchase price of approximately €30.6 million or approximately $34.3 million |
Assets Held for Sale
Assets Held for Sale | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Assets Held for Sale | Assets Held for Sale In April 2020, the Company entered into an agreement to form a second joint venture in the form of a limited liability partnership with GIC to develop and operate xScale TM data centers in Asia-Pacific (the “Asia-Pacific Joint Venture”). Upon closing, GIC will contribute cash in exchange for an 80% partnership interest in the Asia-Pacific Joint Venture. The Company has agreed to sell three development sites in Japan, Osaka 2, Tokyo 12, and Tokyo 14, to the Asia-Pacific Joint Venture in exchange for a 20% partnership interest in the Asia-Pacific Joint Venture and cash proceeds. The assets and liabilities of these data center facilities, which are currently included within the Company's Asia-Pacific operating segment, were classified as held for sale as of June 30, 2020. The transaction is expected to close in the fourth quarter of 2020, pending regulatory approval and other closing conditions. As of June 30, 2020 , $141.2 million of property, plant and equipment, $11.0 million of other current assets were classified as assets held for sale on the condensed consolidated balance sheet. In addition, $7.2 million |
Equity Method Investments
Equity Method Investments | 6 Months Ended |
Jun. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments On October 8, 2019, the Company entered into a joint venture in the form of a limited liability partnership with GIC, Singapore's sovereign wealth fund (the "EMEA Joint Venture"), to develop and operate xScale data centers in Europe. xScale data centers are engineered to meet the technical and operational requirements and price points of core hyperscale workload deployments and also offer access to Equinix's comprehensive suite of interconnection and edge services. Upon closing, GIC contributed €152.6 million in cash, or $167.4 million at the exchange rate in effect on October 8, 2019, for an 80% partnership interest in the EMEA Joint Venture. Equinix sold certain xScale data center facilities to the EMEA Joint Venture in exchange for net cash proceeds of $351.8 million , as well as a 20% partnership interest in the EMEA Joint Venture with a fair value of $41.9 million . The Company accounts for its investments in the EMEA Joint Venture using the equity method of accounting, whereby the investments were recorded initially at fair value, which equals to the cost of the Company's initial equity contribution, and subsequently adjusted for cash contributions and the Company's share of the income and losses of the investees. During the three and six months ended June 30, 2020 , the Company made additional equity contributions of $7.6 million and $12.7 million to the EMEA Joint Venture, respectively. As of June 30, 2020 and December 31, 2019, the Company's equity method investments were $79.8 million and $59.7 million , respectively, and were included within other assets on the consolidated balance sheet. The Company's share of income and losses of equity method investments was not significant for the three and six months ended June 30, 2020 and was included in other income on the condensed consolidated statement of operations. As part of the sale of its xScale data center facilities to the EMEA Joint Venture, the Company also received a contingent consideration upon completion of certain performance milestones. The milestone payments are primarily contingent on the receipt of local regulatory approval for certain sites. The contingent consideration is considered a derivative and is remeasured at its fair value each reporting period using inputs such as probabilities of payment, discount rates, foreign currency forward rates and projected payment dates. The fair value measurements were based on significant inputs that are not observable in the market and thus represent Level 3 measurements. As of June 30, 2020 and December 31, 2019, the fair value of the contingent consideration was $39.3 million and $40.1 million |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities Derivatives Designated as Hedging Instruments Net Investment Hedges. The Company is exposed to the impact of foreign exchange rate fluctuations on the value of investments in its foreign subsidiaries whose functional currencies are other than the U.S. Dollar. In order to mitigate the impact of foreign currency exchange rates, the Company has entered into various foreign currency debt obligations, which are designated as hedges against the Company's net investments in foreign subsidiaries. As of June 30, 2020 and December 31, 2019 , the total principal amounts of foreign currency debt obligations designated as net investment hedges were $3,465.7 million and $4,078.7 million , respectively. The Company also uses cross-currency interest rate swaps to hedge a portion of its net investment in its European operations. As of June 30, 2020 , U.S. Dollar to Euro cross-currency interest rate swap contracts with a total notional amount of $1,597.0 million were outstanding. As of December 31, 2019 , U.S. Dollar to Euro cross-currency interest rate swap contracts with a total notional amount of $750.0 million were outstanding. At maturity of each outstanding contract, the Company will receive U.S. Dollars from and pay Euros to the contract counterparty. During the term of each contract, the Company receives interest payments in U.S. Dollars and makes interest payments in Euros based on a notional amount and fixed interest rates determined at contract inception. The effect of net investment hedges on accumulated other comprehensive income and the condensed consolidated statements of operations for the three and six months ended June 30, 2020 and 2019 was as follows (in thousands): Amount of gain or (loss) recognized in accumulated other comprehensive income: Three Months Ended Six Months Ended 2020 2019 2020 2019 Foreign currency debt $ (85,215 ) $ (34,309 ) $ 13,887 $ 29,606 Cross-currency interest rate swaps (included component) (1) (10,333 ) (9,689 ) 3,807 5,826 Cross-currency interest rate swaps (excluded component) (2) (1,510 ) 6,141 30,194 3,551 Total $ (97,058 ) $ (37,857 ) $ 47,888 $ 38,983 Amount of gain or (loss) recognized in earnings: Location of gain or (loss) Three Months Ended Six Months Ended 2020 2019 2020 2019 Cross-currency interest rate swaps (excluded component) (2) Interest expense $ 5,459 $ 4,928 $ 10,548 $ 9,091 Total $ 5,459 $ 4,928 $ 10,548 $ 9,091 (1) Included component represents foreign exchange spot rates. (2) Excluded component represents cross-currency basis spread and interest rates. Cash Flow Hedges . The Company hedges its foreign currency translation exposure for forecasted revenues and expenses in its EMEA region between the U.S. Dollar and the British Pound, Euro, Swedish Krona and Swiss Franc. The foreign currency forward and option contracts that the Company uses to hedge this exposure are designated as cash flow hedges. As of June 30, 2020 and December 31, 2019 , the total notional amounts of these foreign exchange contracts were $984.8 million and $824.8 million , respectively. As of June 30, 2020 , the Company's foreign exchange contracts had maturity dates ranging from July 2020 to June 2022 and the Company recorded a net gain of $20.1 million within accumulated other comprehensive income (loss) relating to these foreign exchange contracts that will be reclassified to revenues and expenses as they mature in the next 12 months. As of December 31, 2019, the Company's foreign exchange contracts had maturity dates ranging from January 2020 to December 2021 and the Company recorded a net gain of $16.3 million within accumulated other comprehensive income (loss) relating to these foreign exchange contracts that will be reclassified to revenues and expenses as they mature in the next 12 months. The Company enters into intercompany hedging instruments ("intercompany derivatives") with wholly-owned subsidiaries of the Company in order to hedge certain forecasted revenues and expenses denominated in currencies other than the U.S. Dollar. Simultaneously, the Company enters into derivative contracts with unrelated third parties to externally hedge the net exposure created by such intercompany derivatives. The Company hedges the interest rate exposure created by anticipated fixed rate debt issuances through the use of treasury locks and forward starting swaps (collectively, interest rate locks), which are designated as cash flow hedges. As of June 30, 2020 , the total notional amount of interest rate locks outstanding was $618.0 million . As of December 31, 2019, the Company had no interest rate locks outstanding. During the six months ended June 30, 2020, interest rate locks with a combined aggregate notional amount of $1.25 billion were settled related to the issuance of the 2025 Notes, 2027 Notes, 2030 Notes, and 2050 Notes in June 2020 as described i n Note 10 below . When interest rate locks are settled, any accumulated gain or loss included as a component of other comprehensive income (loss) are amortized to interest expense over the term of the interest rate locks. As of June 30, 2020 , the Company recorded a net loss of $3.0 million within accumulated other comprehensive income (loss) to be reclassified to interest expense in the next 12 months for interest rate locks. As of December 31, 2019 , the net loss and gain in accumulated other comprehensive income (loss) to be reclassified to interest expense in the next 12 months for interest rate locks was not significant. The effect of cash flow hedges on accumulated other comprehensive income and the condensed consolidated statements of operations for the three and six months ended June 30, 2020 and 2019 was as follows (in thousands): Amount of gain or (loss) recognized in accumulated other comprehensive income: Three Months Ended Six Months Ended 2020 2019 2020 2019 Foreign currency forward and option contracts (included component) (1) $ (22,347 ) $ (2,599 ) $ 5,678 $ 8,366 Foreign currency option contracts (excluded component) (2) 358 (1,405 ) 1,676 (1,405 ) Interest rate locks (650 ) — (26,882 ) — Total $ (22,639 ) $ (4,004 ) $ (19,528 ) $ 6,961 Amount of gain or (loss) reclassified from accumulated other comprehensive income to income: Three Months Ended Six Months Ended Location of gain or (loss) 2020 2019 2020 2019 Foreign currency forward contracts Revenues $ 20,558 $ 18,684 $ 41,777 $ 28,545 Foreign currency forward contracts Costs and operating expenses (10,498 ) (9,745 ) (21,498 ) (15,074 ) Interest rate locks Interest Expense 90 — 258 — Total $ 10,150 $ 8,939 $ 20,537 $ 13,471 Amount of gain or (loss) excluded from effectiveness testing included in income: Three Months Ended Six Months Ended Location of gain or (loss) 2020 2019 2020 2019 Foreign currency forward contracts Other income (expense) $ — $ — $ — $ 88 Foreign currency option contracts (excluded component) (2) Revenues (503 ) (17 ) (1,024 ) (17 ) Total $ (503 ) $ (17 ) $ (1,024 ) $ 71 (1) Included component represents foreign exchange spot rates. (2) Excluded component represents option's time value. Derivatives Not Designated as Hedging Instruments Embedded Derivatives . The Company is deemed to have foreign currency forward contracts embedded in certain of the Company's customer agreements that are priced in currencies different from the functional or local currencies of the parties involved. These embedded derivatives are separated from their host contracts and carried on the Company's balance sheet at their fair value. The majority of these embedded derivatives arise as a result of the Company's foreign subsidiaries pricing their customer contracts in U.S. Dollars. Economic Hedges of Embedded Derivatives . The Company uses foreign currency forward contracts to manage the foreign exchange risk associated with the Company's customer agreements that are priced in currencies different from the functional or local currencies of the parties involved ("economic hedges of embedded derivatives"). Foreign currency forward contracts represent agreements to exchange the currency of one country for the currency of another country at an agreed-upon price on an agreed-upon settlement date. Foreign Currency Forward Contracts . The Company also uses foreign currency forward contracts to manage the foreign exchange risk associated with certain foreign currency-denominated monetary assets and liabilities. As a result of foreign currency fluctuations, the U.S. Dollar equivalent values of its foreign currency-denominated monetary assets and liabilities change. Gains and losses on these contracts are included in other income (expense), on a net basis, along with the foreign currency gains and losses of the related foreign currency-denominated monetary assets and liabilities associated with these foreign currency forward contracts. As of June 30, 2020 and December 31, 2019 , the total notional amounts of these foreign currency contracts were $3.6 billion and $2.5 billion , respectively. The following table presents the effect of derivatives not designated as hedging instruments in the Company's condensed consolidated statements of operations (in thousands): Amount of gain or (loss) recognized in earnings: Three Months Ended Six Months Ended Location of gain or (loss) 2020 2019 2020 2019 Embedded derivatives Revenues $ (2,741 ) $ (185 ) $ 4,710 $ 722 Economic hedge of embedded derivatives Revenues 2,301 598 (5,601 ) 541 Foreign currency forward contracts Other income (expense) (113,016 ) 10,148 20,808 18,499 Total $ (113,456 ) $ 10,561 $ 19,917 $ 19,762 Fair Value of Derivative Instruments The following table presents the fair value of derivative instruments recognized in the Company's condensed consolidated balance sheets as of June 30, 2020 and December 31, 2019 (in thousands): June 30, 2020 December 31, 2019 Assets (1) Liabilities (2) Assets (1) Liabilities (2) Designated as hedging instruments: Cash flow hedges Foreign currency forward and option contracts $ 27,084 $ 3,896 $ 24,853 $ 5,898 Interest rate locks 886 1,583 — — Net investment hedges Cross-currency interest rate swaps 60,252 — 26,251 — Total designated as hedging 88,222 5,479 51,104 5,898 Not designated as hedging instruments: Embedded derivatives 8,227 1,223 4,595 2,268 Economic hedges of embedded derivatives 1,937 42 1,367 — Foreign currency forward contracts 990 75,101 641 27,446 Total not designated as hedging 11,154 76,366 6,603 29,714 Total Derivatives $ 99,376 $ 81,845 $ 57,707 $ 35,612 (1) As presented in the Company's condensed consolidated balance sheets within other current assets and other assets. (2) As presented in the Company's condensed consolidated balance sheets within other current liabilities and other liabilities. Offsetting Derivative Assets and Liabilities The Company presents its derivative instruments and the accrued interest related to cross-currency interest rate swaps at gross fair values in the condensed consolidated balance sheets. The Company enters into master netting agreements with its counterparties for transactions other than embedded derivatives to mitigate credit risk exposure to any single counterparty. Master netting agreements allow for individual derivative contracts with a single counterparty to offset in the event of default. For presentation on the condensed consolidated balance sheets, the Company does not offset fair value amounts recognized for derivative instruments or the accrued interest related to cross-currency interest rate swaps under master netting arrangements. The following table presents information related to these offsetting arrangements as of June 30, 2020 and December 31, 2019 (in thousands): Gross Amounts Offset in Consolidated Balance Sheet Gross Amounts Gross Amounts Offset in the Balance Sheet Net Amounts Gross Amounts not Offset in the Balance Sheet Net June 30, 2020 Derivative assets $ 119,426 $ — $ 119,426 $ (60,426 ) $ 59,000 Derivative liabilities 92,804 — 92,804 (60,426 ) 32,378 December 31, 2019 Derivative assets $ 76,640 $ — $ 76,640 $ (37,820 ) $ 38,820 Derivative liabilities 45,832 — 45,832 (37,820 ) 8,012 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Valuation Methods Fair value estimates are made as of a specific point in time based on methods using the market approach valuation method which uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities or other valuation techniques. These techniques involve uncertainties and are affected by the assumptions used and the judgments made regarding risk characteristics of various financial instruments, discount rates, estimates of future cash flows, future expected loss experience and other factors. Cash Equivalents and Investments. The fair value of the Company's investments in money market funds approximates their face value. Such instruments are included in cash equivalents. The Company's money market funds and publicly traded equity securities are classified within Level 1 of the fair value hierarchy because they are valued using quoted prices for identical instruments in active markets. The fair value of the Company's other investments, including certificates of deposit, approximates their face value. The fair value of these investments is priced based on the quoted market price for similar instruments or nonbinding market prices that are corroborated by observable market data. Such instruments are classified within Level 2 of the fair value hierarchy. The Company determines the fair values of its Level 2 investments by using inputs such as actual trade data, benchmark yields, broker/dealer quotes and other similar data, which are obtained from quoted market prices, custody bank, third-party pricing vendors or other sources. The Company uses such pricing data as the primary input to make its assessments and determinations as to the ultimate valuation of its investment portfolio and has not made, during the periods presented, any material adjustments to such inputs. The Company is responsible for its consolidated financial statements and underlying estimates. The Company uses the specific identification method in computing realized gains and losses. Realized gains and losses from the sale of investments are included within other income (expense) in the Company's consolidated statements of operations. The Company's investments in publicly traded equity securities are carried at fair value. Unrealized gains and losses on publicly traded equity securities are reported within other income (expense) in the Company's consolidated statements of operations. Derivative Assets and Liabilities . Inputs used for valuations of derivatives are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data. The significant inputs used include spot currency rates and forward points, interest rate curves, and published credit default swap rates of its foreign exchange trading counterparties and other comparable companies. The Company has determined that the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, therefore the derivatives are categorized as Level 2. Other than the assets and liabilities that were classified as held for sale as described in Note 5 above, the Company did not have any nonfinancial assets or liabilities measured at fair value on a recurring basis as of June 30, 2020 and December 31, 2019 . The Company's financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2020 were as follows (in thousands): Fair Value at Fair Value Measurement Using Level 1 Level 2 Assets: Money market and deposit accounts $ 2,594,622 $ 2,594,622 $ — Publicly traded equity securities 5,927 5,927 — Certificates of deposit 16,142 — 16,142 Derivative instruments (1) 99,376 — 99,376 Total $ 2,716,067 $ 2,600,549 $ 115,518 Liabilities: Derivative instruments (1) $ 81,845 $ — $ 81,845 (1) Amounts are included within other current assets, other assets, others current liabilities and other liabilities in the Company's accompanying condensed consolidated balance sheet. The Company's financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 were as follows (in thousands): Fair Value at Fair Value Measurement Using Level 1 Level 2 Assets: Money market and deposit accounts $ 886,547 $ 886,547 $ — Publicly traded equity securities 2,779 2,779 — Certificates of deposit 7,583 — 7,583 Derivative instruments (1) 57,707 — 57,707 Total $ 954,616 $ 889,326 $ 65,290 Liabilities: Derivative instruments (1) $ 35,612 $ — $ 35,612 (1) Amounts are included within other current assets, other assets, other current liabilities and other liabilities in the Company's accompanying condensed consolidated balance sheet. The Company did not have any Level 3 financial assets or financial liabilities measured at fair value on a recurring basis as of June 30, 2020 and December 31, 2019 . |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases Significant Lease Transactions Silicon Valley 4 ("SV4") Data Center In February 2020, the Company exercised its first renewal option available to extend the lease term for the SV4 Data Center for five years . The Company concluded that the two remaining renewal options of five-years each are reasonably certain to be exercised; therefore the concluded lease term is 15 years and 7 months . The lease was previously accounted for as an operating lease. The Company reassessed the lease classification of the SV4 lease and determined the lease should be accounted for as a finance lease. During the three months ended March 31, 2020, the Company recorded finance lease right-of-use ("ROU") asset and liability of $62.8 million and $63.3 million , respectively. Hong Kong 1 ("HK1") Data Center In March 2020, the Company entered into several lease agreements with the landlord to lease several premises in the HK1 Data Center. One of the premises commenced in March 2020 with an initial term of 18 years . The Company assessed the lease classification of that premises at the commencement date and determined the lease should be accounted for as a finance lease. The Company will assess the remaining premises when the leases commence. During the three months ended March 31, 2020, the Company recorded finance lease ROU asset and liability of $163.0 million Hong Kong dollars or $21.0 million at the exchange rate in effect on March 31, 2020. Headquarter Office in Redwood City, California ("HQ Office") In April 2020, the Company entered into a lease amendment to (i) extend the lease term of the existing space for another 10.5 years and (ii) lease additional space within its HQ Office building, which commenced on June 1, 2020. Both spaces have two five-year renewal options which the Company determined were not reasonably certain to be exercised. Therefore, the concluded lease term for both spaces was approximately 11 years , expiring on March 31, 2031. The existing space was previously accounted for as a finance lease. The Company concluded that the building and land components for both spaces should be accounted for as finance leases and operating leases, respectively. During the three months ended June 30, 2020, the Company recorded incremental finance lease ROU asset and liability of $42.2 million and operating lease ROU asset and liability of $8.3 million . Singapore 1 ("SG1") Data Center In May 2020, the Company exercised a three-year renewal option on the lease of the existing space and entered into a lease agreement to lease additional space in the SG1 Data Center. The building and land were originally accounted for as a finance lease and operating lease, respectively. The Company concluded the remaining five three-year renewal options were reasonably certain to be exercised and therefore, the concluded lease term was 18 years . The Company reassessed the lease classification and determined that the lease should be accounted for as finance lease. Land was determined to not be a component of the lease as the Company no longer controlled substantially all of the economic benefits from its use. The Company recorded incremental finance lease ROU asset and liability of $99.5 million Singapore dollars, or approximately $71.4 million , and de-recognized operating lease ROU asset and liability of $11.4 million Singapore dollars, or approximately $8.1 million , at the exchange rate in effect on June 30, 2020, during the three months ended June 30, 2020. Abu Dhabi 1 ("AD1") Data Center In June 2020, the Company entered into two lease agreements to lease additional spaces in the AD1 Data Center. The Company concluded lease terms of both leases are 10 years , including a three-year renewal option for one of the leases. The Company assessed the lease classifications and determined that the leases should be accounted for as finance leases. During the three months ended June 30, 2020, the Company recorded finance lease ROU assets and liabilities of 261.9 million United Arab Emirates Dirham in aggregate, or approximately $71.3 million at the exchange rate in effect on June 30, 2020. Lease Expenses The components of lease expenses are as follows (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Finance lease cost Amortization of right-of-use assets (1) $ 28,897 19,811 $ 54,062 $ 39,897 Interest on lease liabilities 28,438 27,111 56,263 54,634 Total finance lease cost 57,335 46,922 110,325 94,531 Operating lease cost 52,556 54,920 106,347 106,559 Total lease cost $ 109,891 $ 101,842 $ 216,672 $ 201,090 (1) Amortization of right-of-use assets is included with depreciation expense, and is recorded within cost of revenues, sales and marketing and general and administrative expenses in the condensed consolidated statements of operations. Other Information Other information related to leases is as follows (in thousands): Six Months Ended Six Months Ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 54,417 $ 52,701 Operating cash flows from operating leases 102,146 101,875 Financing cash flows from finance leases 42,681 43,112 Right-of-use assets obtained in exchange for lease obligations: (1) Finance leases $ 311,951 $ 2,597 Operating leases 14,114 77,905 As of June 30, 2020 As of December 31, 2019 Weighted-average remaining lease term - finance leases (2) 15 years 15 years Weighted-average remaining lease term - operating leases (2) 13 years 13 years Weighted-average discount rate - finance leases 8 % 9 % Weighted-average discount rate - operating leases 4 % 4 % Finance lease assets (3) $ 1,516,351 $ 1,277,614 (1) Represents all non-cash changes in ROU assets. (2) Includes lease renewal options that are reasonably certain to be exercised. (3) As of June 30, 2020 and December 31, 2019, the Company recorded accumulated amortization of finance lease assets of $528.6 million and $474.8 million, respectively. Finance lease assets are recorded within property, plant and equipment, net on the condensed consolidated balance sheets. Maturities of Lease Liabilities Maturities of lease liabilities as of June 30, 2020 are as follows (in thousands): Operating Leases Finance Leases Total 2020 (6 months remaining) $ 87,527 $ 95,454 $ 182,981 2021 192,368 205,435 397,803 2022 184,049 202,461 386,510 2023 168,561 197,071 365,632 2024 156,627 194,842 351,469 Thereafter 1,094,015 1,975,440 3,069,455 Total lease payments 1,883,147 2,870,703 4,753,850 Plus amount representing residual property value — 17,626 17,626 Less imputed interest (499,952 ) (1,127,481 ) (1,627,433 ) Total $ 1,383,195 $ 1,760,848 $ 3,144,043 The Company entered into agreements with various landlords primarily to lease data center spaces and ground leases which have not yet commenced as of June 30, 2020 . These leases will commence between fiscal years 2020 and 2022 , with lease terms of 1 to 49 years and a total lease commitment of approximately $705.6 million . |
Leases | Leases Significant Lease Transactions Silicon Valley 4 ("SV4") Data Center In February 2020, the Company exercised its first renewal option available to extend the lease term for the SV4 Data Center for five years . The Company concluded that the two remaining renewal options of five-years each are reasonably certain to be exercised; therefore the concluded lease term is 15 years and 7 months . The lease was previously accounted for as an operating lease. The Company reassessed the lease classification of the SV4 lease and determined the lease should be accounted for as a finance lease. During the three months ended March 31, 2020, the Company recorded finance lease right-of-use ("ROU") asset and liability of $62.8 million and $63.3 million , respectively. Hong Kong 1 ("HK1") Data Center In March 2020, the Company entered into several lease agreements with the landlord to lease several premises in the HK1 Data Center. One of the premises commenced in March 2020 with an initial term of 18 years . The Company assessed the lease classification of that premises at the commencement date and determined the lease should be accounted for as a finance lease. The Company will assess the remaining premises when the leases commence. During the three months ended March 31, 2020, the Company recorded finance lease ROU asset and liability of $163.0 million Hong Kong dollars or $21.0 million at the exchange rate in effect on March 31, 2020. Headquarter Office in Redwood City, California ("HQ Office") In April 2020, the Company entered into a lease amendment to (i) extend the lease term of the existing space for another 10.5 years and (ii) lease additional space within its HQ Office building, which commenced on June 1, 2020. Both spaces have two five-year renewal options which the Company determined were not reasonably certain to be exercised. Therefore, the concluded lease term for both spaces was approximately 11 years , expiring on March 31, 2031. The existing space was previously accounted for as a finance lease. The Company concluded that the building and land components for both spaces should be accounted for as finance leases and operating leases, respectively. During the three months ended June 30, 2020, the Company recorded incremental finance lease ROU asset and liability of $42.2 million and operating lease ROU asset and liability of $8.3 million . Singapore 1 ("SG1") Data Center In May 2020, the Company exercised a three-year renewal option on the lease of the existing space and entered into a lease agreement to lease additional space in the SG1 Data Center. The building and land were originally accounted for as a finance lease and operating lease, respectively. The Company concluded the remaining five three-year renewal options were reasonably certain to be exercised and therefore, the concluded lease term was 18 years . The Company reassessed the lease classification and determined that the lease should be accounted for as finance lease. Land was determined to not be a component of the lease as the Company no longer controlled substantially all of the economic benefits from its use. The Company recorded incremental finance lease ROU asset and liability of $99.5 million Singapore dollars, or approximately $71.4 million , and de-recognized operating lease ROU asset and liability of $11.4 million Singapore dollars, or approximately $8.1 million , at the exchange rate in effect on June 30, 2020, during the three months ended June 30, 2020. Abu Dhabi 1 ("AD1") Data Center In June 2020, the Company entered into two lease agreements to lease additional spaces in the AD1 Data Center. The Company concluded lease terms of both leases are 10 years , including a three-year renewal option for one of the leases. The Company assessed the lease classifications and determined that the leases should be accounted for as finance leases. During the three months ended June 30, 2020, the Company recorded finance lease ROU assets and liabilities of 261.9 million United Arab Emirates Dirham in aggregate, or approximately $71.3 million at the exchange rate in effect on June 30, 2020. Lease Expenses The components of lease expenses are as follows (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Finance lease cost Amortization of right-of-use assets (1) $ 28,897 19,811 $ 54,062 $ 39,897 Interest on lease liabilities 28,438 27,111 56,263 54,634 Total finance lease cost 57,335 46,922 110,325 94,531 Operating lease cost 52,556 54,920 106,347 106,559 Total lease cost $ 109,891 $ 101,842 $ 216,672 $ 201,090 (1) Amortization of right-of-use assets is included with depreciation expense, and is recorded within cost of revenues, sales and marketing and general and administrative expenses in the condensed consolidated statements of operations. Other Information Other information related to leases is as follows (in thousands): Six Months Ended Six Months Ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 54,417 $ 52,701 Operating cash flows from operating leases 102,146 101,875 Financing cash flows from finance leases 42,681 43,112 Right-of-use assets obtained in exchange for lease obligations: (1) Finance leases $ 311,951 $ 2,597 Operating leases 14,114 77,905 As of June 30, 2020 As of December 31, 2019 Weighted-average remaining lease term - finance leases (2) 15 years 15 years Weighted-average remaining lease term - operating leases (2) 13 years 13 years Weighted-average discount rate - finance leases 8 % 9 % Weighted-average discount rate - operating leases 4 % 4 % Finance lease assets (3) $ 1,516,351 $ 1,277,614 (1) Represents all non-cash changes in ROU assets. (2) Includes lease renewal options that are reasonably certain to be exercised. (3) As of June 30, 2020 and December 31, 2019, the Company recorded accumulated amortization of finance lease assets of $528.6 million and $474.8 million, respectively. Finance lease assets are recorded within property, plant and equipment, net on the condensed consolidated balance sheets. Maturities of Lease Liabilities Maturities of lease liabilities as of June 30, 2020 are as follows (in thousands): Operating Leases Finance Leases Total 2020 (6 months remaining) $ 87,527 $ 95,454 $ 182,981 2021 192,368 205,435 397,803 2022 184,049 202,461 386,510 2023 168,561 197,071 365,632 2024 156,627 194,842 351,469 Thereafter 1,094,015 1,975,440 3,069,455 Total lease payments 1,883,147 2,870,703 4,753,850 Plus amount representing residual property value — 17,626 17,626 Less imputed interest (499,952 ) (1,127,481 ) (1,627,433 ) Total $ 1,383,195 $ 1,760,848 $ 3,144,043 The Company entered into agreements with various landlords primarily to lease data center spaces and ground leases which have not yet commenced as of June 30, 2020 . These leases will commence between fiscal years 2020 and 2022 , with lease terms of 1 to 49 years and a total lease commitment of approximately $705.6 million . |
Debt Facilities
Debt Facilities | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt Facilities | Debt Facilities Mortgage and Loans Payable As of June 30, 2020 and December 31, 2019 , the Company's mortgage and loans payable consisted of the following (in thousands): June 30, December 31, 2019 Term loans $ 1,218,259 $ 1,287,151 Mortgage payable and loans payable 77,574 82,967 1,295,833 1,370,118 Less amount representing unamortized debt discount and debt issuance cost (3,927 ) (4,849 ) Add amount representing unamortized mortgage premium 1,732 1,768 1,293,638 1,367,037 Less current portion (75,589 ) (77,603 ) Total $ 1,218,049 $ 1,289,434 Senior Credit Facility - Revolving Facility On December 12, 2017, the Company entered into a credit agreement with a group of lenders for a $3.0 billion credit facility ("Senior Credit Facility"), comprised of a $2.0 billion senior unsecured multicurrency revolving credit facility ("Revolving Facility") and an approximately $1.0 billion senior unsecured multicurrency term loan facility. The Revolving Facility allows the Company to borrow, repay and reborrow over its term. The Revolving Facility provides a sublimit for the issuance of letters of credit of up to $250.0 million at any one time. In March 2020, the Company borrowed a total of $250.0 million under the Revolving Facility, which was fully repaid in May 2020. As of June 30, 2020, the Company had 43 irrevocable letters of credit totaling $72.4 million issued and outstanding under the Revolving Facility and the amount available to the Company to borrow under the Revolving Facility was approximately $1.9 billion as of June 30, 2020 . 364-Day Facilities On April 15, 2020, the Company entered into a credit agreement which provided for senior unsecured 364-day term loan facilities in an aggregate principal amount of $750.0 million , comprised of $500.0 million available to be borrowed on the closing date (the "Closing Date Facility") and $250.0 million available to be borrowed on or prior to July 14, 2020 (the "Delayed Draw Facility" and together with the Closing Date Facility, the "364-Day Facilities"). On April 15, 2020, the Company borrowed $391.0 million , as well as €100.0 million or $109.8 million at the exchange rate in effect on that date, under the Closing Date Facility. During the three months ended June 30, 2020, the Company repaid all amounts outstanding under the Closing Date Facility and terminated the 364-Day Facilities. The loss on debt extinguishment incurred in connection with the redemption and termination was not significant. Senior Notes As of June 30, 2020 and December 31, 2019 , the Company's senior notes consisted of the following (in thousands): June 30, 2020 December 31, 2019 Amount Effective Rate Amount Effective Rate 5.000% Infomart Senior Notes (1) $ 300,000 4.49 % $ 450,000 4.46 % 5.375% Senior Notes due 2022 — — % 343,711 5.56 % 2.625% Senior Notes due 2024 1,000,000 2.79 % 1,000,000 2.79 % 2.875% Euro Senior Notes due 2024 842,775 3.08 % 841,500 3.08 % 2.875% Euro Senior Notes due 2025 1,123,700 3.04 % 1,122,000 3.04 % 2.900% Senior Notes due 2026 600,000 3.04 % 600,000 3.04 % 5.875% Senior Notes due 2026 1,100,000 6.03 % 1,100,000 6.03 % 2.875% Euro Senior Notes due 2026 1,123,700 3.04 % 1,122,000 3.04 % 5.375% Senior Notes due 2027 1,250,000 5.51 % 1,250,000 5.51 % 3.200% Senior Notes due 2029 1,200,000 3.30 % 1,200,000 3.30 % 1.250% Senior Notes due 2025 500,000 1.46 % — — % 1.800% Senior Notes due 2027 500,000 1.96 % — — % 2.150% Senior Notes due 2030 1,100,000 2.27 % — — % 3.000% Senior Notes due 2050 500,000 3.09 % — — % 11,140,175 9,029,211 Less amount representing unamortized debt issuance cost (108,519 ) (78,030 ) Add amount representing unamortized debt premium 745 1,716 11,032,401 8,952,897 Less current portion (2,227,768 ) (643,224 ) Total $ 8,804,633 $ 8,309,673 (1) 5.000% Infomart Senior Notes consist of two tranches outstanding due in each of October 2020 and April 2021. The effective rate represents the weighted-average effective interest rates of the tranches outstanding at the periods presented in the table above. Redemption of 5.375% Senior Notes due 2022 On January 2, 2020, the Company redeemed the remaining $343.7 million principal amount of the 5.375% Senior Notes due 2022. In connection with the redemption, the Company incurred $5.9 million of loss on debt extinguishment, including $4.6 million redemption premium that was paid in cash and $1.3 million related to the write-off of unamortized debt issuance costs. 1.250% Senior Notes due 2025, 1.800% Senior Notes due 2027, 2.150% Senior Notes due 2030, and 3.000% Senior Notes due 2050 On June 22, 2020, the Company issued $500.0 million aggregate principal amount of 1.250% senior notes due 2025 (the "2025 Notes"), $500.0 million aggregate principal amount of 1.800% senior notes due 2027 (the "2027 Notes"), $1.1 billion aggregate principal amount of 2.150% senior notes due 2030 (the "2030 Notes"), and $500.0 million aggregate principal amount of 3.000% senior notes due 2050 (the "2050 Notes"). Interest on these notes is payable semi-annually on January 15 and July 15 of each year, commencing on January 15, 2021. Debt issuance costs and debt discounts related to the 2025 Notes, 2027 Notes, 2030 Notes, and 2050 Notes were $5.3 million , $5.6 million , $12.9 million , and $14.2 million , respectively. With a portion of th e net cash proceeds from the issuance of the 2025 Notes, 2027 Notes, 2030 Notes, and 2050 Notes as described above, the Company redeemed all outstanding principal amount under its 2.875% Euro Senior Notes due 2024 and 5.875% Senior Notes due 2026 on July 8, 2020. See Note 14 below for further information on the redemption. Maturities of Debt Instruments The following table sets forth maturities of the Company's debt, including mortgage and loans payable, and senior notes, gross of debt issuance costs, debt discounts and debt premiums, as of June 30, 2020 (in thousands): Years ending: 2020 (6 months remaining) $ 2,130,697 2021 225,580 2022 1,148,837 2023 6,510 2024 1,006,031 Thereafter 7,920,085 Total $ 12,437,740 Fair Value of Debt Instruments The following table sets forth the estimated fair values of the Company's mortgage and loans payable and senior notes, including current maturities, as of (in thousands): June 30, December 31, Mortgage and loans payable $ 1,304,463 $ 1,378,429 Senior notes 11,580,351 9,339,497 The fair values of the mortgage and loans payable and 5.000% Infomart Senior Notes, which are not publicly traded, were estimated by considering the Company's credit rating, current rates available to the Company for debt of the same remaining maturities and terms of the debt (Level 2). The fair value of the senior notes, which are traded in the public debt market, was based on quoted market prices (Level 1). Interest Charges The following table sets forth total interest costs incurred, and total interest costs capitalized for the periods presented (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Interest expense $ 108,480 $ 120,547 $ 215,818 $ 243,393 Interest capitalized 6,880 5,910 12,911 15,764 Interest charges incurred $ 115,360 $ 126,457 $ 228,729 $ 259,157 Total interest paid in cash, net of capitalized interest, during the three months ended June 30, 2020 and 2019 was $115.8 million and $107.4 million , respectively. Total interest paid in cash, net of capitalized interest, during the six months ended June 30, 2020 and 2019 was $238.6 million and $243.6 million , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments As a result of the Company's various IBX data center expansion projects, as of June 30, 2020 , the Company was contractually committed for approximately $1.1 billion of unaccrued capital expenditures, primarily for IBX infrastructure equipment not yet delivered and labor not yet provided, in connection with the work necessary to open these IBX data centers and make them available to customers for installation. The Company also had numerous other, non-capital purchase commitments in place as of June 30, 2020 , such as commitments to purchase power in select locations through the remainder of 2020 and thereafter, and other open purchase orders for goods or services to be delivered or provided during the remainder of 2020 and thereafter. Such other miscellaneous purchase commitments totaled approximately $1.1 billion as of June 30, 2020 . In addition, the Company entered into lease agreements in various locations that have not yet commenced as of June 30, 2020 . For further information on lease commitments, see Note 9 above. Equity Contribution Commitments In connection with the EMEA Joint Venture closed in October 2019, the Company agreed to make future equity contributions to the EMEA Joint Venture. As of June 30, 2020 , the Company had future equity contribution commitments of €12.3 million and £10.3 million , or $26.5 million in total at the exchange rate in effect on June 30, 2020 . Contingent Liabilities The Company estimates exposure on certain liabilities, such as indirect and property taxes, based on the best information available at the time of determination. With respect to real and personal property taxes, the Company records what it can reasonably estimate based on prior payment history, assessed value by the assessor's office, current landlord estimates or estimates based on current or changing fixed asset values in each specific municipality, as applicable. However, there are circumstances beyond the Company's control whereby the underlying value of the property or basis for which the tax is calculated on the property may change, such as a landlord selling the underlying property of one of the Company's IBX data center leases or a municipality changing the assessment value in a jurisdiction and, as a result, the Company's property tax obligations may vary from period to period. Based upon the most current facts and circumstances, the Company makes the necessary property tax accruals for each of its reporting periods. However, revisions in the Company's estimates of the potential or actual liability could materially impact the financial position, results of operations or cash flows of the Company. The Company's indirect and property tax filings in various jurisdictions are subject to examination by local tax authorities. Although we believe that we have adequately assessed and accounted for our potential tax liabilities, and that our tax estimates are reasonable, there can be no certainty that additional taxes will not be due upon audit of our tax returns or as a result of further changes to the tax laws and interpretations thereof. For example, we are currently undergoing audits and appealing the tentative assessments in a number of jurisdictions where we operate, such as Brazil and France. The final results of these audits and the outcomes of the appeals are uncertain and may not be resolved in our favor. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations and appeals that would affect the adequacy of its tax accruals for each of the reporting periods. If any issues arising from the tax examinations and appeals are resolved in a manner inconsistent with the Company's expectations, the revision of the estimates of the potential or actual liabilities could materially impact the financial position, results of operations, or cash flows of the Company. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Stockholders' Equity Rollforward The following tables provide a rollforward of stockholders' equity for the three and six months ended June 30, 2020 and 2019 (in thousands): AOCI (Loss) Retained Earnings Equinix Stockholders' Equity Non-controlling Interests Total Stockholders' Equity Common Stock Treasury Stock Additional Paid-in Capital Accumulated Shares Amount Shares Amount Balance as of December 31, 2019 85,700,953 $ 86 (392,567 ) $ (144,256 ) $ 12,696,433 $ (4,168,469 ) $ (934,613 ) $ 1,391,425 $ 8,840,606 $ (224 ) $ 8,840,382 Adjustment from adoption of new accounting standard update — — — — — — — (900 ) (900 ) — (900 ) Net income — — — — — — — 118,792 118,792 165 118,957 Other comprehensive loss — — — — — — (272,056 ) — (272,056 ) (11 ) (272,067 ) Issuance of common stock and release of treasury stock for employee equity awards 405,550 — 50,594 16,958 13,432 — — — 30,390 — 30,390 Issuance of common stock under ATM Program 162,530 — — — 101,791 — — — 101,791 — 101,791 Dividend distribution on common stock, $2.66 per share — — — — — (227,387 ) — — (227,387 ) — (227,387 ) Settlement of accrued dividends on vested equity awards — — — — 109 (403 ) — — (294 ) — (294 ) Accrued dividends on unvested equity awards — — — — — (3,268 ) — — (3,268 ) — (3,268 ) Stock-based compensation, net of estimated forfeitures — — — — 81,690 — — — 81,690 — 81,690 Balance as of March 31, 2020 86,269,033 86 (341,973 ) (127,298 ) 12,893,455 (4,399,527 ) (1,206,669 ) 1,509,317 8,669,364 (70 ) 8,669,294 Net income — — — — — — — 133,304 133,304 46 133,350 Other comprehensive income — — — — — — 66,378 — 66,378 2 66,380 Issuance of common stock and release of treasury stock for employee equity awards 34,146 — 688 256 (256 ) — — — — — — Issuance of common stock for equity offering 2,587,500 3 1,683,103 1,683,106 1,683,106 Dividend distribution on common stock, $2.66 per share — — — — — (235,334 ) — — (235,334 ) — (235,334 ) Settlement of accrued dividends on vested equity awards — — — — — (44 ) — — (44 ) — (44 ) Accrued dividends on unvested equity awards — — — — — (4,136 ) — — (4,136 ) — (4,136 ) Stock-based compensation, net of estimated forfeitures — — — — 75,642 — — — 75,642 — 75,642 Balance as of June 30, 2020 88,890,679 $ 89 (341,285 ) $ (127,042 ) $ 14,651,944 $ (4,639,041 ) $ (1,140,291 ) $ 1,642,621 $ 10,388,280 $ (22 ) $ 10,388,258 Additional Paid-in Capital Accumulated AOCI (Loss) Retained Equinix Non-controlling interests Total Stockholders' Equity Common Stock Treasury Stock Shares Amount Shares Amount Balance as of December 31, 2018 81,119,117 $ 81 (396,859 ) $ (145,161 ) $ 10,751,313 $ (3,331,200 ) $ (945,702 ) $ 889,948 $ 7,219,279 $ — $ 7,219,279 Adjustment from adoption of new accounting standard update — — — — — — — (5,973 ) (5,973 ) — (5,973 ) Net income (loss) — — — — — — — 118,078 118,078 (331 ) 117,747 Other comprehensive income — — — — — — 3,337 — 3,337 7 3,344 Issuance of common stock and release of treasury stock for employee equity awards 360,464 — 1,706 360 27,233 — — — 27,593 — 27,593 Issuance of common stock for equity offering 2,985,575 3 — — 1,213,431 — — — 1,213,434 — 1,213,434 Dividend distribution on common stock, $2.46 per share — — — — — (198,933 ) — — (198,933 ) — (198,933 ) Settlement of accrued dividends on vested equity awards — — — — 284 (387 ) — — (103 ) — (103 ) Accrued dividends on unvested equity awards — — — — — (2,395 ) — — (2,395 ) — (2,395 ) Stock-based compensation, net of estimated forfeitures — — — — 50,795 — — — 50,795 — 50,795 Balance as of March 31, 2019 84,465,156 $ 84 (395,153 ) $ (144,801 ) $ 12,043,056 $ (3,532,915 ) $ (942,365 ) $ 1,002,053 $ 8,425,112 $ (324 ) $ 8,424,788 Net income — — — — — — — 143,527 143,527 325 143,852 Other comprehensive loss — — — — — — (16,078 ) — (16,078 ) (14 ) (16,092 ) Issuance of common stock and release of treasury stock for employee equity awards 26,435 — 359 76 (76 ) — — — — — — Issuance of common stock under ATM Program 722,361 1 — — 348,120 — — — 348,121 — 348,121 Dividend distribution on common stock, $2.46 per share — — — — — (207,949 ) — — (207,949 ) — (207,949 ) Settlement of accrued dividends on vested equity awards — — — — 12 (33 ) — — (21 ) — (21 ) Accrued dividends on unvested equity awards — — — — — (2,972 ) — — (2,972 ) — (2,972 ) Stock-based compensation, net of estimated forfeitures — — — — 59,502 — — — 59,502 — 59,502 Balance as of June 30, 2019 85,213,952 85 (394,794 ) (144,725 ) 12,450,614 (3,743,869 ) (958,443 ) 1,145,580 8,749,242 (13 ) 8,749,229 Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss, net of tax, by components are as follows (in thousands): Balance as of Net Change Balance as of Foreign currency translation adjustment ("CTA") loss $ (1,056,918 ) $ (232,497 ) $ (1,289,415 ) Unrealized gain (loss) on cash flow hedges (1) 15,638 (21,124 ) (5,486 ) Net investment hedge CTA gain (1) 107,619 47,888 155,507 Net actuarial gain (loss) on defined benefit plans (2) (952 ) 55 (897 ) Accumulated other comprehensive loss attributable to Equinix $ (934,613 ) $ (205,678 ) $ (1,140,291 ) (1) Refer to Note 7 for a discussion of the amounts reclassified from accumulated other comprehensive loss to net income. (2) The Company has a defined benefit pension plan covering all employees in one country where such plan is mandated by law. The Company does not have any defined benefit plans in any other countries. The unamortized gain (loss) on defined benefit plans includes gains or losses resulting from a change in the value of either the projected benefit obligation or the plan assets resulting from a change in an actuarial assumption, net of amortization. Changes in foreign currencies can have a significant impact to the Company's consolidated balance sheets (as evidenced above in the Company's foreign currency translation loss), as well as its consolidated results of operations, as amounts in foreign currencies are generally translated into more U.S. Dollars when the U.S. Dollar weakens or fewer U.S. Dollars when the U.S. Dollar strengthens. As of June 30, 2020 , the U.S. Dollar was generally stronger relative to certain of the currencies of the foreign countries in which the Company operates as compared to December 31, 2019. This overall strengthening of the U.S. Dollar had an overall unfavorable impact on the Company's condensed consolidated financial position because the foreign denominations translated into fewer U.S. Dollars as evidenced by an increase in foreign currency translation loss for the six months ended June 30, 2020 as reflected in the above table. The volatility of the U.S. Dollar as compared to the other currencies in which the Company operates could have a significant impact on its condensed consolidated financial position and results of operations including the amount of revenue that the Company reports in future periods. Common Stock In March 2019, the Company issued and sold 2,985,575 shares of common stock in a public offering pursuant to a registration statement and a related prospectus and prospectus supplement. The Company received net proceeds of approximately $1,213.4 million , net of underwriting discounts, commissions and offering expenses. In May 2020, the Company issued and sold 2,587,500 shares of common stock in a public offering pursuant to a registration statement and a related prospectus and prospectus supplement. The Company received net proceeds of approximately $1,683.1 million , net of underwriting discounts, commissions and offering expenses. In December 2018, the Company launched an ATM program, under which it may offer and sell from time to time up to an aggregate of $750.0 million of its common stock in "at the market" transactions (the "ATM Program"). For the six months ended June 30, 2020 , the Company sold 162,530 shares under the ATM Program, for approximately $101.8 million , net of payment of commissions to sales agents and other offering expenses. For the six months ended June 30, 2019, the Company sold 722,361 shares under the ATM program, for approximately $348.2 million , net of payment of commissions to sales agents and other offering expenses. Stock-Based Compensation For the six months ended June 30, 2020 , the Compensation Committee and/or the Stock Award Committee of the Company's Board of Directors, as the case may be, approved the issuance of an aggregate of 680,543 shares of restricted stock units to certain employees, including executive officers. These equity awards are subject to vesting provisions and have a weighted-average grant date fair value of $583.99 per share and a weighted-average requisite service period of 3.33 years . The valuation of restricted stock units with only a service condition or a service and performance condition require no significant assumptions as the fair value for these types of equity awards is based solely on the fair value of the Company's stock price on the date of grant. The Company used revenues and adjusted funds from operations ("AFFO") per share as the performance measurements in the restricted stock units with both service and performance conditions that were granted in the six months ended June 30, 2020 . The Company uses a Monte Carlo simulation option-pricing model to determine the fair value of restricted stock units with a service and market condition. The Company used total shareholder return ("TSR") as the performance measurement in the restricted stock units with a service and market condition that were granted in the six months ended June 30, 2020 . There were no significant changes in the assumptions used to determine the fair value of restricted stock units with a service and market condition that were granted in 2020 compared to the prior year. The following table presents, by operating expense category, the Company's stock-based compensation expense recognized in the Company's condensed consolidated statements of operations (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Cost of revenues $ 7,655 $ 6,500 $ 16,998 $ 11,512 Sales and marketing 18,215 15,157 36,760 28,458 General and administrative 49,974 39,862 102,652 70,572 Total $ 75,844 $ 61,519 $ 156,410 $ 110,542 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information While the Company has a single line of business, which is the design, build-out and operation of IBX data centers, it has determined that it has three reportable segments comprised of its Americas, EMEA and Asia-Pacific geographic regions. The Company's chief operating decision-maker evaluates performance, makes operating decisions and allocates resources based on the Company's revenues and adjusted EBITDA performance both on a consolidated basis and based on these three reportable segments. The following tables present revenue information disaggregated by product lines and geographic areas (in thousands): Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Americas EMEA Asia-Pacific Total Americas EMEA Asia-Pacific Total Colocation (1) $ 447,498 $ 381,144 $ 228,803 $ 1,057,445 $ 898,452 $ 743,474 $ 449,896 $ 2,091,822 Interconnection 153,387 50,904 45,140 249,431 304,316 99,445 87,811 491,572 Managed infrastructure 28,889 29,012 22,150 80,051 54,418 59,149 43,974 157,541 Other (1) 5,081 6,130 — 11,211 10,301 8,596 — 18,897 Recurring revenues 634,855 467,190 296,093 1,398,138 1,267,487 910,664 581,681 2,759,832 Non-recurring revenues 26,564 20,900 24,519 71,983 55,837 56,335 42,659 154,831 Total $ 661,419 $ 488,090 $ 320,612 $ 1,470,121 $ 1,323,324 $ 966,999 $ 624,340 $ 2,914,663 (1) Includes some leasing and hedging activities. Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Americas EMEA Asia-Pacific Total Americas EMEA Asia-Pacific Total Colocation (1) $ 444,086 $ 347,795 $ 213,734 $ 1,005,615 $ 884,067 $ 678,920 $ 423,399 $ 1,986,386 Interconnection 142,460 38,614 37,957 219,031 281,023 76,139 74,653 431,815 Managed infrastructure 22,908 28,397 22,467 73,772 44,695 57,485 44,387 146,567 Other (1) 5,352 2,275 — 7,627 11,331 4,774 — 16,105 Recurring revenues 614,806 417,081 274,158 1,306,045 1,221,116 817,318 542,439 2,580,873 Non-recurring revenues 29,614 32,774 16,544 78,932 67,670 67,197 32,455 167,322 Total $ 644,420 $ 449,855 $ 290,702 $ 1,384,977 $ 1,288,786 $ 884,515 $ 574,894 $ 2,748,195 (1) Includes some leasing and hedging activities. No single customer accounted for 10% or greater of the Company's accounts receivable or revenues for the three and six months ended June 30, 2020 and 2019 . The Company defines adjusted EBITDA as income from operations excluding depreciation, amortization, accretion, stock-based compensation expense, restructuring charges, impairment charges, transaction costs and gain or loss on asset sales as presented below (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Adjusted EBITDA: Americas $ 302,107 $ 309,052 $ 595,720 $ 616,890 EMEA 243,597 209,645 473,755 408,717 Asia-Pacific 174,337 158,313 334,776 311,558 Total adjusted EBITDA 720,041 677,010 1,404,251 1,337,165 Depreciation, amortization and accretion expense (348,434 ) (320,550 ) (685,865 ) (635,255 ) Stock-based compensation expense (75,844 ) (61,519 ) (156,410 ) (110,542 ) Impairment charges — (386 ) — (14,834 ) Transaction costs (13,617 ) (2,774 ) (25,147 ) (5,245 ) Gain (loss) on asset sales 342 — (857 ) — Income from operations $ 282,488 $ 291,781 $ 535,972 $ 571,289 The Company also provides the following additional segment disclosures (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Depreciation and amortization: Americas $ 180,934 $ 167,244 $ 352,008 $ 334,014 EMEA 93,012 87,980 185,386 172,145 Asia-Pacific 74,647 64,000 147,068 126,243 Total $ 348,593 $ 319,224 $ 684,462 $ 632,402 Capital expenditures: Americas $ 181,913 $ 173,623 $ 366,314 $ 318,118 EMEA 197,264 170,851 319,392 335,206 Asia-Pacific 102,771 99,697 197,183 154,814 Total $ 481,948 $ 444,171 $ 882,889 $ 808,138 The Company's long-lived assets, including property, plant and equipment, net and operating lease right-of-use assets, located in the following geographic areas as of (in thousands): June 30, December 31, Americas $ 5,649,000 $ 5,400,287 EMEA 4,321,446 4,051,701 Asia-Pacific 2,693,381 2,700,609 Total Property, plant and equipment, net $ 12,663,827 $ 12,152,597 Americas $ 368,959 $ 387,598 EMEA 498,334 521,129 Asia-Pacific 528,808 566,640 Total Operating lease right-of-use assets $ 1,396,101 $ 1,475,367 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 7, 2020, the Company used a portion of the net cash proceeds from the 2025, 2027, 2030, and 2050 Notes, as described in Note 10, to fund the redemption of all of the outstanding €750.0 million 2.875% Senior Notes due 2024 and $1.1 billion 5.875% Senior Notes due 2026. In connection with the redemption, the Company incurred $93.5 million of loss on debt extinguishment, including $77.8 million in redemption premium that was paid in cash and $15.7 million related to the write-off of unamortized debt issuance costs. On July 29, 2020 , the Company declared a quarterly cash dividend of $2.66 per share, which is payable on September 23, 2020 to the Company's common stockholders of record as of the close of business on August 19, 2020 . |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements have been prepared by Equinix, Inc. ("Equinix" or the "Company") and reflect all adjustments, consisting only of normal recurring adjustments, which in the opinion of management are necessary to fairly state the financial position and the results of operations for the interim periods presented. The condensed consolidated balance sheet data as of December 31, 2019 has been derived from audited consolidated financial statements as of that date. The condensed consolidated financial statements have been prepared in accordance with the regulations of the Securities and Exchange Commission ("SEC"), but omit certain information and footnote disclosure necessary to present the statements in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). For further information, refer to the Consolidated Financial Statements and Notes thereto included in Equinix's Form 10-K as filed with the SEC on February 21, 2020. Results for the interim periods are not necessarily indicative of results for the entire fiscal year. |
Consolidation | The accompanying unaudited condensed consolidated financial statements include the accounts of Equinix and its subsidiaries, including the acquisitions of Packet Host, Inc. from March 2, 2020, three data centers in Mexico acquired from Axtel S.A.B. de C.V from January 8, 2020, and Switch Datacenters' AMS1 data center business in Amsterdam, Netherlands from April 18, 2019. All intercompany accounts and transactions have been eliminated in consolidation. |
Income Taxes | The Company elected to be taxed as a real estate investment trust for U.S. federal income tax purposes ("REIT") beginning with its 2015 taxable year. As a result, the Company may deduct the distributions made to its stockholders from taxable income generated by the Company and its qualified REIT subsidiaries ("QRSs"). The Company's dividends paid deduction generally eliminates the U.S. federal taxable income of the Company and its QRSs, resulting in no U.S. federal income tax due. However, the Company's domestic taxable REIT subsidiaries ("TRSs") are subject to U.S. corporate income taxes on any taxable income generated by them. In addition, the foreign operations of the Company are subject to local income taxes regardless of whether the foreign operations are operated as QRSs or TRSs. The Company provides for income taxes during interim periods based on the estimated effective tax rate for the year. The effective tax rate is subject to change in the future due to various factors such as the operating performance of the Company, tax law changes and future business acquisitions. |
Recent Accounting Pronouncements | Accounting Standards Not Yet Adopted In December 2019, Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, Income Taxes ("Topic 740"): Simplifying the Accounting for Income T axes. The ASU simplifies accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The ASU also improves consistent application of and simplifies generally accepted accounting principles ("GAAP") for other areas of Topic 740 by clarifying and amending existing guidance. For public entities, the ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted including adoption in any interim period for periods for which financial statements have not yet been issued. The Company is currently evaluating the extent of the impact that the adoption of this standard will have on its condensed consolidated financial statements. Accounting Standards Adopted In March 2020, FASB issued ASU 2020-04, Reference Rate Reform ("Topic 848"): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The ASU provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The Company adopted the ASU upon its issuance and there was no impact on the Company's condensed consolidated financial statements for the six months ended June 30, 2020 as a result of adopting this standard. The Company will evaluate its debt, derivative and lease contracts that are eligible for modification relief and may apply the elections prospectively as needed. In June 2016, FASB issued ASU 2016-13, Financial Instruments - Credit Losses ("Topic 326"): Measurement of Credit Losses on Financial Instruments. The ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The ASU requires enhanced qualitative and quantitative disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization's portfolio. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Company adopted this new ASU on January 1, 2020 using the modified retrospective approach and recorded a net decrease to retained earnings of $0.9 million and a corresponding increase to allowance for doubtful accounts. The adoption did not have any significant impact on other financial assets within the scope of ASC 326, such as contract asset. |
Accounts Receivable | Accounts receivables are recorded at invoice amount and are generally due in less than one year. Allowance for doubtful accounts are estimated losses resulting from the inability of customers making payments. An estimate of uncollectible amounts is made based on historical bad debts, age of customer receivable balances, customers' financial conditions, the impact of current and expected future economic conditions, inclusive of the effect of the COVID-19 pandemic on credit losses. |
Derivatives Designated as Hedging Instruments | Cash Flow Hedges . Derivatives Designated as Hedging Instruments Net Investment Hedges. The Company is exposed to the impact of foreign exchange rate fluctuations on the value of investments in its foreign subsidiaries whose functional currencies are other than the U.S. Dollar. In order to mitigate the impact of foreign currency exchange rates, the Company has entered into various foreign currency debt obligations, which are designated as hedges against the Company's net investments in foreign subsidiaries. As of June 30, 2020 and December 31, 2019 , the total principal amounts of foreign currency debt obligations designated as net investment hedges were $3,465.7 million and $4,078.7 million , respectively. The Company also uses cross-currency interest rate swaps to hedge a portion of its net investment in its European operations. As of June 30, 2020 , U.S. Dollar to Euro cross-currency interest rate swap contracts with a total notional amount of $1,597.0 million were outstanding. As of December 31, 2019 , U.S. Dollar to Euro cross-currency interest rate swap contracts with a total notional amount of $750.0 million were outstanding. At maturity of each outstanding contract, the Company will receive U.S. Dollars from and pay Euros to the contract counterparty. During the term of each contract, the Company receives interest payments in U.S. Dollars and makes interest payments in Euros based on a notional amount and fixed interest rates determined at contract inception. |
Derivatives Not Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments Embedded Derivatives . The Company is deemed to have foreign currency forward contracts embedded in certain of the Company's customer agreements that are priced in currencies different from the functional or local currencies of the parties involved. These embedded derivatives are separated from their host contracts and carried on the Company's balance sheet at their fair value. The majority of these embedded derivatives arise as a result of the Company's foreign subsidiaries pricing their customer contracts in U.S. Dollars. Economic Hedges of Embedded Derivatives . The Company uses foreign currency forward contracts to manage the foreign exchange risk associated with the Company's customer agreements that are priced in currencies different from the functional or local currencies of the parties involved ("economic hedges of embedded derivatives"). Foreign currency forward contracts represent agreements to exchange the currency of one country for the currency of another country at an agreed-upon price on an agreed-upon settlement date. Foreign Currency Forward Contracts . The Company also uses foreign currency forward contracts to manage the foreign exchange risk associated with certain foreign currency-denominated monetary assets and liabilities. As a result |
Fair Value Measurements | Valuation Methods Fair value estimates are made as of a specific point in time based on methods using the market approach valuation method which uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities or other valuation techniques. These techniques involve uncertainties and are affected by the assumptions used and the judgments made regarding risk characteristics of various financial instruments, discount rates, estimates of future cash flows, future expected loss experience and other factors. Cash Equivalents and Investments. The fair value of the Company's investments in money market funds approximates their face value. Such instruments are included in cash equivalents. The Company's money market funds and publicly traded equity securities are classified within Level 1 of the fair value hierarchy because they are valued using quoted prices for identical instruments in active markets. The fair value of the Company's other investments, including certificates of deposit, approximates their face value. The fair value of these investments is priced based on the quoted market price for similar instruments or nonbinding market prices that are corroborated by observable market data. Such instruments are classified within Level 2 of the fair value hierarchy. The Company determines the fair values of its Level 2 investments by using inputs such as actual trade data, benchmark yields, broker/dealer quotes and other similar data, which are obtained from quoted market prices, custody bank, third-party pricing vendors or other sources. The Company uses such pricing data as the primary input to make its assessments and determinations as to the ultimate valuation of its investment portfolio and has not made, during the periods presented, any material adjustments to such inputs. The Company is responsible for its consolidated financial statements and underlying estimates. The Company uses the specific identification method in computing realized gains and losses. Realized gains and losses from the sale of investments are included within other income (expense) in the Company's consolidated statements of operations. The Company's investments in publicly traded equity securities are carried at fair value. Unrealized gains and losses on publicly traded equity securities are reported within other income (expense) in the Company's consolidated statements of operations. Derivative Assets and Liabilities . Inputs used for valuations of derivatives are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data. The significant inputs used include spot currency rates and forward points, interest rate curves, and published credit default swap rates of its foreign exchange trading counterparties and other comparable companies. The Company has determined that the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, therefore the derivatives are categorized as Level 2. |
Segment Information | While the Company has a single line of business, which is the design, build-out and operation of IBX data centers, it has determined that it has three |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of accounts receivable and credit losses | The following table summarizes the activity of the Company's allowance for doubtful accounts (in thousands): Balance at December 31, 2019 $ 13,026 Adjustments due to adoption of ASU 2016-13 900 Provision for allowance for doubtful accounts (1) 11,496 Net write-offs and recoveries (4,519 ) Balance at June 30, 2020 $ 20,903 (1) During the six months ended June 30, 2020, the Company recorded a provision for allowance for doubtful accounts of $6.3 million due to the impacts of the COVID-19 pandemic based on available information to date. |
Schedule of allowance for doubtful accounts | The following table summarizes the activity of the Company's allowance for doubtful accounts (in thousands): Balance at December 31, 2019 $ 13,026 Adjustments due to adoption of ASU 2016-13 900 Provision for allowance for doubtful accounts (1) 11,496 Net write-offs and recoveries (4,519 ) Balance at June 30, 2020 $ 20,903 (1) During the six months ended June 30, 2020, the Company recorded a provision for allowance for doubtful accounts of $6.3 million |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Summary of opening and closing balances | The following table summarizes the opening and closing balances of the Company's accounts receivable, net; contract asset, current; contract asset, non-current; deferred revenue, current; and deferred revenue, non-current (in thousands): Accounts receivable, net Contract asset, current Contract asset, non-current Deferred revenue, current Deferred revenue, non-current Beginning balances as of January 1, 2020 $ 689,134 $ 10,033 $ 31,521 $ 76,193 $ 46,555 Closing balances as of June 30, 2020 691,589 10,688 47,194 84,709 48,140 Increase $ 2,455 $ 655 $ 15,673 $ 8,516 $ 1,585 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share ("EPS") for the periods presented (in thousands, except per share amounts): Three Months Ended Six Months Ended 2020 2019 2020 2019 Net income $ 133,350 $ 143,852 $ 252,307 $ 261,599 Net (income) loss attributable to non-controlling interests (46 ) (325 ) (211 ) 6 Net income attributable to Equinix $ 133,304 $ 143,527 $ 252,096 $ 261,605 Weighted-average shares used to calculate basic EPS 87,303 84,399 86,427 83,114 Effect of dilutive securities: Employee equity awards 598 368 638 357 Weighted-average shares used to calculate diluted EPS 87,901 84,767 87,065 83,471 EPS attributable to Equinix: Basic EPS $ 1.53 $ 1.70 $ 2.92 $ 3.15 Diluted EPS $ 1.52 $ 1.69 $ 2.90 $ 3.13 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of final allocation of total purchase consideration | A summary of the preliminary allocation of total purchase consideration is presented as follows (in thousands): Packet Axtel Cash and cash equivalents $ 1,068 $ — Accounts receivable 5,073 — Other current assets 117 14,048 Property, plant and equipment 27,945 76,407 Operating lease right-of-use assets 1,519 1,646 Intangible assets 62,700 22,750 Goodwill 227,602 78,902 Other assets 138 — Total assets acquired 326,162 193,753 Accounts payable and accrued liabilities (1,001 ) (238 ) Other current liabilities (860 ) — Operating lease liabilities (1,519 ) (1,586 ) Finance lease liabilities (27,945 ) — Other liabilities — (162 ) Deferred tax liabilities (4,539 ) (2,749 ) Net assets acquired $ 290,298 $ 189,018 |
Schedule of acquired intangible assets | The following table presents certain information on the acquired intangible assets (in thousands): Intangible Assets Fair Value Estimated Useful Lives (Years) Weighted-average Estimated Useful Lives (Years) Packet: Trade names $ 1,600 3.0 3.0 Existing technology 5,100 3.0 3.0 Customer relationships 56,000 10.0 10.0 Axtel: Customer relationships 22,750 15.0 15.0 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of net investment hedges | The effect of net investment hedges on accumulated other comprehensive income and the condensed consolidated statements of operations for the three and six months ended June 30, 2020 and 2019 was as follows (in thousands): Amount of gain or (loss) recognized in accumulated other comprehensive income: Three Months Ended Six Months Ended 2020 2019 2020 2019 Foreign currency debt $ (85,215 ) $ (34,309 ) $ 13,887 $ 29,606 Cross-currency interest rate swaps (included component) (1) (10,333 ) (9,689 ) 3,807 5,826 Cross-currency interest rate swaps (excluded component) (2) (1,510 ) 6,141 30,194 3,551 Total $ (97,058 ) $ (37,857 ) $ 47,888 $ 38,983 Amount of gain or (loss) recognized in earnings: Location of gain or (loss) Three Months Ended Six Months Ended 2020 2019 2020 2019 Cross-currency interest rate swaps (excluded component) (2) Interest expense $ 5,459 $ 4,928 $ 10,548 $ 9,091 Total $ 5,459 $ 4,928 $ 10,548 $ 9,091 (1) Included component represents foreign exchange spot rates. (2) Excluded component represents cross-currency basis spread and interest rates. |
Summary of cash flow hedges | The effect of cash flow hedges on accumulated other comprehensive income and the condensed consolidated statements of operations for the three and six months ended June 30, 2020 and 2019 was as follows (in thousands): Amount of gain or (loss) recognized in accumulated other comprehensive income: Three Months Ended Six Months Ended 2020 2019 2020 2019 Foreign currency forward and option contracts (included component) (1) $ (22,347 ) $ (2,599 ) $ 5,678 $ 8,366 Foreign currency option contracts (excluded component) (2) 358 (1,405 ) 1,676 (1,405 ) Interest rate locks (650 ) — (26,882 ) — Total $ (22,639 ) $ (4,004 ) $ (19,528 ) $ 6,961 Amount of gain or (loss) reclassified from accumulated other comprehensive income to income: Three Months Ended Six Months Ended Location of gain or (loss) 2020 2019 2020 2019 Foreign currency forward contracts Revenues $ 20,558 $ 18,684 $ 41,777 $ 28,545 Foreign currency forward contracts Costs and operating expenses (10,498 ) (9,745 ) (21,498 ) (15,074 ) Interest rate locks Interest Expense 90 — 258 — Total $ 10,150 $ 8,939 $ 20,537 $ 13,471 Amount of gain or (loss) excluded from effectiveness testing included in income: Three Months Ended Six Months Ended Location of gain or (loss) 2020 2019 2020 2019 Foreign currency forward contracts Other income (expense) $ — $ — $ — $ 88 Foreign currency option contracts (excluded component) (2) Revenues (503 ) (17 ) (1,024 ) (17 ) Total $ (503 ) $ (17 ) $ (1,024 ) $ 71 (1) Included component represents foreign exchange spot rates. (2) Excluded component represents option's time value. |
Schedule of derivatives not designated as hedging instruments in the Company's condensed consolidated statements of operations | The following table presents the effect of derivatives not designated as hedging instruments in the Company's condensed consolidated statements of operations (in thousands): Amount of gain or (loss) recognized in earnings: Three Months Ended Six Months Ended Location of gain or (loss) 2020 2019 2020 2019 Embedded derivatives Revenues $ (2,741 ) $ (185 ) $ 4,710 $ 722 Economic hedge of embedded derivatives Revenues 2,301 598 (5,601 ) 541 Foreign currency forward contracts Other income (expense) (113,016 ) 10,148 20,808 18,499 Total $ (113,456 ) $ 10,561 $ 19,917 $ 19,762 |
Schedule of derivative instruments recognized in the Company's condensed consolidated balance sheets | The following table presents the fair value of derivative instruments recognized in the Company's condensed consolidated balance sheets as of June 30, 2020 and December 31, 2019 (in thousands): June 30, 2020 December 31, 2019 Assets (1) Liabilities (2) Assets (1) Liabilities (2) Designated as hedging instruments: Cash flow hedges Foreign currency forward and option contracts $ 27,084 $ 3,896 $ 24,853 $ 5,898 Interest rate locks 886 1,583 — — Net investment hedges Cross-currency interest rate swaps 60,252 — 26,251 — Total designated as hedging 88,222 5,479 51,104 5,898 Not designated as hedging instruments: Embedded derivatives 8,227 1,223 4,595 2,268 Economic hedges of embedded derivatives 1,937 42 1,367 — Foreign currency forward contracts 990 75,101 641 27,446 Total not designated as hedging 11,154 76,366 6,603 29,714 Total Derivatives $ 99,376 $ 81,845 $ 57,707 $ 35,612 (1) As presented in the Company's condensed consolidated balance sheets within other current assets and other assets. (2) As presented in the Company's condensed consolidated balance sheets within other current liabilities and other liabilities. |
Schedule of offsetting derivative assets and liabilities | The following table presents information related to these offsetting arrangements as of June 30, 2020 and December 31, 2019 (in thousands): Gross Amounts Offset in Consolidated Balance Sheet Gross Amounts Gross Amounts Offset in the Balance Sheet Net Amounts Gross Amounts not Offset in the Balance Sheet Net June 30, 2020 Derivative assets $ 119,426 $ — $ 119,426 $ (60,426 ) $ 59,000 Derivative liabilities 92,804 — 92,804 (60,426 ) 32,378 December 31, 2019 Derivative assets $ 76,640 $ — $ 76,640 $ (37,820 ) $ 38,820 Derivative liabilities 45,832 — 45,832 (37,820 ) 8,012 |
Schedule of offsetting derivative assets and liabilities | The following table presents information related to these offsetting arrangements as of June 30, 2020 and December 31, 2019 (in thousands): Gross Amounts Offset in Consolidated Balance Sheet Gross Amounts Gross Amounts Offset in the Balance Sheet Net Amounts Gross Amounts not Offset in the Balance Sheet Net June 30, 2020 Derivative assets $ 119,426 $ — $ 119,426 $ (60,426 ) $ 59,000 Derivative liabilities 92,804 — 92,804 (60,426 ) 32,378 December 31, 2019 Derivative assets $ 76,640 $ — $ 76,640 $ (37,820 ) $ 38,820 Derivative liabilities 45,832 — 45,832 (37,820 ) 8,012 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets and liabilities measured at fair value on a recurring basis | The Company's financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2020 were as follows (in thousands): Fair Value at Fair Value Measurement Using Level 1 Level 2 Assets: Money market and deposit accounts $ 2,594,622 $ 2,594,622 $ — Publicly traded equity securities 5,927 5,927 — Certificates of deposit 16,142 — 16,142 Derivative instruments (1) 99,376 — 99,376 Total $ 2,716,067 $ 2,600,549 $ 115,518 Liabilities: Derivative instruments (1) $ 81,845 $ — $ 81,845 (1) Amounts are included within other current assets, other assets, others current liabilities and other liabilities in the Company's accompanying condensed consolidated balance sheet. The Company's financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 were as follows (in thousands): Fair Value at Fair Value Measurement Using Level 1 Level 2 Assets: Money market and deposit accounts $ 886,547 $ 886,547 $ — Publicly traded equity securities 2,779 2,779 — Certificates of deposit 7,583 — 7,583 Derivative instruments (1) 57,707 — 57,707 Total $ 954,616 $ 889,326 $ 65,290 Liabilities: Derivative instruments (1) $ 35,612 $ — $ 35,612 (1) Amounts are included within other current assets, other assets, other current liabilities and other liabilities in the Company's accompanying condensed consolidated balance sheet. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Components of lease expenses | The components of lease expenses are as follows (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Finance lease cost Amortization of right-of-use assets (1) $ 28,897 19,811 $ 54,062 $ 39,897 Interest on lease liabilities 28,438 27,111 56,263 54,634 Total finance lease cost 57,335 46,922 110,325 94,531 Operating lease cost 52,556 54,920 106,347 106,559 Total lease cost $ 109,891 $ 101,842 $ 216,672 $ 201,090 (1) Amortization of right-of-use assets is included with depreciation expense, and is recorded within cost of revenues, sales and marketing and general and administrative expenses in the condensed consolidated statements of operations. |
Other information related to leases | Other information related to leases is as follows (in thousands): Six Months Ended Six Months Ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 54,417 $ 52,701 Operating cash flows from operating leases 102,146 101,875 Financing cash flows from finance leases 42,681 43,112 Right-of-use assets obtained in exchange for lease obligations: (1) Finance leases $ 311,951 $ 2,597 Operating leases 14,114 77,905 As of June 30, 2020 As of December 31, 2019 Weighted-average remaining lease term - finance leases (2) 15 years 15 years Weighted-average remaining lease term - operating leases (2) 13 years 13 years Weighted-average discount rate - finance leases 8 % 9 % Weighted-average discount rate - operating leases 4 % 4 % Finance lease assets (3) $ 1,516,351 $ 1,277,614 (1) Represents all non-cash changes in ROU assets. (2) Includes lease renewal options that are reasonably certain to be exercised. (3) As of June 30, 2020 and December 31, 2019, the Company recorded accumulated amortization of finance lease assets of $528.6 million and $474.8 million, respectively. Finance lease assets are recorded within property, plant and equipment, net on the condensed consolidated balance sheets. |
Maturities of lease liabilities | Maturities of lease liabilities as of June 30, 2020 are as follows (in thousands): Operating Leases Finance Leases Total 2020 (6 months remaining) $ 87,527 $ 95,454 $ 182,981 2021 192,368 205,435 397,803 2022 184,049 202,461 386,510 2023 168,561 197,071 365,632 2024 156,627 194,842 351,469 Thereafter 1,094,015 1,975,440 3,069,455 Total lease payments 1,883,147 2,870,703 4,753,850 Plus amount representing residual property value — 17,626 17,626 Less imputed interest (499,952 ) (1,127,481 ) (1,627,433 ) Total $ 1,383,195 $ 1,760,848 $ 3,144,043 |
Maturities of lease liabilities | Maturities of lease liabilities as of June 30, 2020 are as follows (in thousands): Operating Leases Finance Leases Total 2020 (6 months remaining) $ 87,527 $ 95,454 $ 182,981 2021 192,368 205,435 397,803 2022 184,049 202,461 386,510 2023 168,561 197,071 365,632 2024 156,627 194,842 351,469 Thereafter 1,094,015 1,975,440 3,069,455 Total lease payments 1,883,147 2,870,703 4,753,850 Plus amount representing residual property value — 17,626 17,626 Less imputed interest (499,952 ) (1,127,481 ) (1,627,433 ) Total $ 1,383,195 $ 1,760,848 $ 3,144,043 |
Debt Facilities (Tables)
Debt Facilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Summary of debt | As of June 30, 2020 and December 31, 2019 , the Company's senior notes consisted of the following (in thousands): June 30, 2020 December 31, 2019 Amount Effective Rate Amount Effective Rate 5.000% Infomart Senior Notes (1) $ 300,000 4.49 % $ 450,000 4.46 % 5.375% Senior Notes due 2022 — — % 343,711 5.56 % 2.625% Senior Notes due 2024 1,000,000 2.79 % 1,000,000 2.79 % 2.875% Euro Senior Notes due 2024 842,775 3.08 % 841,500 3.08 % 2.875% Euro Senior Notes due 2025 1,123,700 3.04 % 1,122,000 3.04 % 2.900% Senior Notes due 2026 600,000 3.04 % 600,000 3.04 % 5.875% Senior Notes due 2026 1,100,000 6.03 % 1,100,000 6.03 % 2.875% Euro Senior Notes due 2026 1,123,700 3.04 % 1,122,000 3.04 % 5.375% Senior Notes due 2027 1,250,000 5.51 % 1,250,000 5.51 % 3.200% Senior Notes due 2029 1,200,000 3.30 % 1,200,000 3.30 % 1.250% Senior Notes due 2025 500,000 1.46 % — — % 1.800% Senior Notes due 2027 500,000 1.96 % — — % 2.150% Senior Notes due 2030 1,100,000 2.27 % — — % 3.000% Senior Notes due 2050 500,000 3.09 % — — % 11,140,175 9,029,211 Less amount representing unamortized debt issuance cost (108,519 ) (78,030 ) Add amount representing unamortized debt premium 745 1,716 11,032,401 8,952,897 Less current portion (2,227,768 ) (643,224 ) Total $ 8,804,633 $ 8,309,673 (1) 5.000% Infomart Senior Notes consist of two tranches outstanding due in each of October 2020 and April 2021. The effective rate represents the weighted-average effective interest rates of the tranches outstanding at the periods presented in the table above. As of June 30, 2020 and December 31, 2019 , the Company's mortgage and loans payable consisted of the following (in thousands): June 30, December 31, 2019 Term loans $ 1,218,259 $ 1,287,151 Mortgage payable and loans payable 77,574 82,967 1,295,833 1,370,118 Less amount representing unamortized debt discount and debt issuance cost (3,927 ) (4,849 ) Add amount representing unamortized mortgage premium 1,732 1,768 1,293,638 1,367,037 Less current portion (75,589 ) (77,603 ) Total $ 1,218,049 $ 1,289,434 |
Summary of maturities of debt instruments | The following table sets forth maturities of the Company's debt, including mortgage and loans payable, and senior notes, gross of debt issuance costs, debt discounts and debt premiums, as of June 30, 2020 (in thousands): Years ending: 2020 (6 months remaining) $ 2,130,697 2021 225,580 2022 1,148,837 2023 6,510 2024 1,006,031 Thereafter 7,920,085 Total $ 12,437,740 |
Fair value of debt instruments | The following table sets forth the estimated fair values of the Company's mortgage and loans payable and senior notes, including current maturities, as of (in thousands): June 30, December 31, Mortgage and loans payable $ 1,304,463 $ 1,378,429 Senior notes 11,580,351 9,339,497 |
Schedule of interest charges incurred | The following table sets forth total interest costs incurred, and total interest costs capitalized for the periods presented (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Interest expense $ 108,480 $ 120,547 $ 215,818 $ 243,393 Interest capitalized 6,880 5,910 12,911 15,764 Interest charges incurred $ 115,360 $ 126,457 $ 228,729 $ 259,157 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of rollforward of stockholders' equity | The following tables provide a rollforward of stockholders' equity for the three and six months ended June 30, 2020 and 2019 (in thousands): AOCI (Loss) Retained Earnings Equinix Stockholders' Equity Non-controlling Interests Total Stockholders' Equity Common Stock Treasury Stock Additional Paid-in Capital Accumulated Shares Amount Shares Amount Balance as of December 31, 2019 85,700,953 $ 86 (392,567 ) $ (144,256 ) $ 12,696,433 $ (4,168,469 ) $ (934,613 ) $ 1,391,425 $ 8,840,606 $ (224 ) $ 8,840,382 Adjustment from adoption of new accounting standard update — — — — — — — (900 ) (900 ) — (900 ) Net income — — — — — — — 118,792 118,792 165 118,957 Other comprehensive loss — — — — — — (272,056 ) — (272,056 ) (11 ) (272,067 ) Issuance of common stock and release of treasury stock for employee equity awards 405,550 — 50,594 16,958 13,432 — — — 30,390 — 30,390 Issuance of common stock under ATM Program 162,530 — — — 101,791 — — — 101,791 — 101,791 Dividend distribution on common stock, $2.66 per share — — — — — (227,387 ) — — (227,387 ) — (227,387 ) Settlement of accrued dividends on vested equity awards — — — — 109 (403 ) — — (294 ) — (294 ) Accrued dividends on unvested equity awards — — — — — (3,268 ) — — (3,268 ) — (3,268 ) Stock-based compensation, net of estimated forfeitures — — — — 81,690 — — — 81,690 — 81,690 Balance as of March 31, 2020 86,269,033 86 (341,973 ) (127,298 ) 12,893,455 (4,399,527 ) (1,206,669 ) 1,509,317 8,669,364 (70 ) 8,669,294 Net income — — — — — — — 133,304 133,304 46 133,350 Other comprehensive income — — — — — — 66,378 — 66,378 2 66,380 Issuance of common stock and release of treasury stock for employee equity awards 34,146 — 688 256 (256 ) — — — — — — Issuance of common stock for equity offering 2,587,500 3 1,683,103 1,683,106 1,683,106 Dividend distribution on common stock, $2.66 per share — — — — — (235,334 ) — — (235,334 ) — (235,334 ) Settlement of accrued dividends on vested equity awards — — — — — (44 ) — — (44 ) — (44 ) Accrued dividends on unvested equity awards — — — — — (4,136 ) — — (4,136 ) — (4,136 ) Stock-based compensation, net of estimated forfeitures — — — — 75,642 — — — 75,642 — 75,642 Balance as of June 30, 2020 88,890,679 $ 89 (341,285 ) $ (127,042 ) $ 14,651,944 $ (4,639,041 ) $ (1,140,291 ) $ 1,642,621 $ 10,388,280 $ (22 ) $ 10,388,258 Additional Paid-in Capital Accumulated AOCI (Loss) Retained Equinix Non-controlling interests Total Stockholders' Equity Common Stock Treasury Stock Shares Amount Shares Amount Balance as of December 31, 2018 81,119,117 $ 81 (396,859 ) $ (145,161 ) $ 10,751,313 $ (3,331,200 ) $ (945,702 ) $ 889,948 $ 7,219,279 $ — $ 7,219,279 Adjustment from adoption of new accounting standard update — — — — — — — (5,973 ) (5,973 ) — (5,973 ) Net income (loss) — — — — — — — 118,078 118,078 (331 ) 117,747 Other comprehensive income — — — — — — 3,337 — 3,337 7 3,344 Issuance of common stock and release of treasury stock for employee equity awards 360,464 — 1,706 360 27,233 — — — 27,593 — 27,593 Issuance of common stock for equity offering 2,985,575 3 — — 1,213,431 — — — 1,213,434 — 1,213,434 Dividend distribution on common stock, $2.46 per share — — — — — (198,933 ) — — (198,933 ) — (198,933 ) Settlement of accrued dividends on vested equity awards — — — — 284 (387 ) — — (103 ) — (103 ) Accrued dividends on unvested equity awards — — — — — (2,395 ) — — (2,395 ) — (2,395 ) Stock-based compensation, net of estimated forfeitures — — — — 50,795 — — — 50,795 — 50,795 Balance as of March 31, 2019 84,465,156 $ 84 (395,153 ) $ (144,801 ) $ 12,043,056 $ (3,532,915 ) $ (942,365 ) $ 1,002,053 $ 8,425,112 $ (324 ) $ 8,424,788 Net income — — — — — — — 143,527 143,527 325 143,852 Other comprehensive loss — — — — — — (16,078 ) — (16,078 ) (14 ) (16,092 ) Issuance of common stock and release of treasury stock for employee equity awards 26,435 — 359 76 (76 ) — — — — — — Issuance of common stock under ATM Program 722,361 1 — — 348,120 — — — 348,121 — 348,121 Dividend distribution on common stock, $2.46 per share — — — — — (207,949 ) — — (207,949 ) — (207,949 ) Settlement of accrued dividends on vested equity awards — — — — 12 (33 ) — — (21 ) — (21 ) Accrued dividends on unvested equity awards — — — — — (2,972 ) — — (2,972 ) — (2,972 ) Stock-based compensation, net of estimated forfeitures — — — — 59,502 — — — 59,502 — 59,502 Balance as of June 30, 2019 85,213,952 85 (394,794 ) (144,725 ) 12,450,614 (3,743,869 ) (958,443 ) 1,145,580 8,749,242 (13 ) 8,749,229 |
Schedule of changes in accumulated other comprehensive loss | The changes in accumulated other comprehensive loss, net of tax, by components are as follows (in thousands): Balance as of Net Change Balance as of Foreign currency translation adjustment ("CTA") loss $ (1,056,918 ) $ (232,497 ) $ (1,289,415 ) Unrealized gain (loss) on cash flow hedges (1) 15,638 (21,124 ) (5,486 ) Net investment hedge CTA gain (1) 107,619 47,888 155,507 Net actuarial gain (loss) on defined benefit plans (2) (952 ) 55 (897 ) Accumulated other comprehensive loss attributable to Equinix $ (934,613 ) $ (205,678 ) $ (1,140,291 ) (1) Refer to Note 7 for a discussion of the amounts reclassified from accumulated other comprehensive loss to net income. (2) The Company has a defined benefit pension plan covering all employees in one country where such plan is mandated by law. The Company does not have any defined benefit plans in any other countries. The unamortized gain (loss) on defined benefit plans includes gains or losses resulting from a change in the value of either the projected benefit obligation or the plan assets resulting from a change in an actuarial assumption, net of amortization. |
Schedule of stock-based compensation expense by operating expense category | The following table presents, by operating expense category, the Company's stock-based compensation expense recognized in the Company's condensed consolidated statements of operations (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Cost of revenues $ 7,655 $ 6,500 $ 16,998 $ 11,512 Sales and marketing 18,215 15,157 36,760 28,458 General and administrative 49,974 39,862 102,652 70,572 Total $ 75,844 $ 61,519 $ 156,410 $ 110,542 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of revenue information disaggregated by service lines and geographic areas | The following tables present revenue information disaggregated by product lines and geographic areas (in thousands): Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Americas EMEA Asia-Pacific Total Americas EMEA Asia-Pacific Total Colocation (1) $ 447,498 $ 381,144 $ 228,803 $ 1,057,445 $ 898,452 $ 743,474 $ 449,896 $ 2,091,822 Interconnection 153,387 50,904 45,140 249,431 304,316 99,445 87,811 491,572 Managed infrastructure 28,889 29,012 22,150 80,051 54,418 59,149 43,974 157,541 Other (1) 5,081 6,130 — 11,211 10,301 8,596 — 18,897 Recurring revenues 634,855 467,190 296,093 1,398,138 1,267,487 910,664 581,681 2,759,832 Non-recurring revenues 26,564 20,900 24,519 71,983 55,837 56,335 42,659 154,831 Total $ 661,419 $ 488,090 $ 320,612 $ 1,470,121 $ 1,323,324 $ 966,999 $ 624,340 $ 2,914,663 (1) Includes some leasing and hedging activities. Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Americas EMEA Asia-Pacific Total Americas EMEA Asia-Pacific Total Colocation (1) $ 444,086 $ 347,795 $ 213,734 $ 1,005,615 $ 884,067 $ 678,920 $ 423,399 $ 1,986,386 Interconnection 142,460 38,614 37,957 219,031 281,023 76,139 74,653 431,815 Managed infrastructure 22,908 28,397 22,467 73,772 44,695 57,485 44,387 146,567 Other (1) 5,352 2,275 — 7,627 11,331 4,774 — 16,105 Recurring revenues 614,806 417,081 274,158 1,306,045 1,221,116 817,318 542,439 2,580,873 Non-recurring revenues 29,614 32,774 16,544 78,932 67,670 67,197 32,455 167,322 Total $ 644,420 $ 449,855 $ 290,702 $ 1,384,977 $ 1,288,786 $ 884,515 $ 574,894 $ 2,748,195 (1) Includes some leasing and hedging activities. |
Schedule of adjusted EBITDA | The Company defines adjusted EBITDA as income from operations excluding depreciation, amortization, accretion, stock-based compensation expense, restructuring charges, impairment charges, transaction costs and gain or loss on asset sales as presented below (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Adjusted EBITDA: Americas $ 302,107 $ 309,052 $ 595,720 $ 616,890 EMEA 243,597 209,645 473,755 408,717 Asia-Pacific 174,337 158,313 334,776 311,558 Total adjusted EBITDA 720,041 677,010 1,404,251 1,337,165 Depreciation, amortization and accretion expense (348,434 ) (320,550 ) (685,865 ) (635,255 ) Stock-based compensation expense (75,844 ) (61,519 ) (156,410 ) (110,542 ) Impairment charges — (386 ) — (14,834 ) Transaction costs (13,617 ) (2,774 ) (25,147 ) (5,245 ) Gain (loss) on asset sales 342 — (857 ) — Income from operations $ 282,488 $ 291,781 $ 535,972 $ 571,289 |
Segment disclosures | The Company also provides the following additional segment disclosures (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Depreciation and amortization: Americas $ 180,934 $ 167,244 $ 352,008 $ 334,014 EMEA 93,012 87,980 185,386 172,145 Asia-Pacific 74,647 64,000 147,068 126,243 Total $ 348,593 $ 319,224 $ 684,462 $ 632,402 Capital expenditures: Americas $ 181,913 $ 173,623 $ 366,314 $ 318,118 EMEA 197,264 170,851 319,392 335,206 Asia-Pacific 102,771 99,697 197,183 154,814 Total $ 481,948 $ 444,171 $ 882,889 $ 808,138 |
Segment long-lived assets | The Company's long-lived assets, including property, plant and equipment, net and operating lease right-of-use assets, located in the following geographic areas as of (in thousands): June 30, December 31, Americas $ 5,649,000 $ 5,400,287 EMEA 4,321,446 4,051,701 Asia-Pacific 2,693,381 2,700,609 Total Property, plant and equipment, net $ 12,663,827 $ 12,152,597 Americas $ 368,959 $ 387,598 EMEA 498,334 521,129 Asia-Pacific 528,808 566,640 Total Operating lease right-of-use assets $ 1,396,101 $ 1,475,367 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Narrative (Detail) $ in Thousands | 6 Months Ended | |||||||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2020USD ($) | Jan. 08, 2020data_center | Jan. 01, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Effective income tax rate, continuing operations | 22.90% | 25.60% | ||||||
Adjustments due to adoption of ASU 2016-13 | $ 10,388,258 | $ 8,749,229 | $ 8,669,294 | $ 8,840,382 | $ 8,424,788 | $ 7,219,279 | ||
Retained Earnings | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Adjustments due to adoption of ASU 2016-13 | 1,642,621 | $ 1,145,580 | $ 1,509,317 | 1,391,425 | $ 1,002,053 | 889,948 | ||
COVID-19 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Increase in allowance for credit loss COVID-19 | 6,300 | |||||||
Payments for one-time bonus and compensation costs COVID-19 | $ 8,600 | |||||||
Cumulative adjustment due to adoption of ASU | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Adjustments due to adoption of ASU 2016-13 | (900) | (5,973) | ||||||
Cumulative adjustment due to adoption of ASU | Retained Earnings | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Adjustments due to adoption of ASU 2016-13 | $ 900 | $ (900) | $ (5,973) | |||||
Axtel | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Data centers purchased | data_center | 3 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Beginning balance | $ 13,026 | $ 13,026 | |||||
Adjustments due to adoption of ASU 2016-13 | 10,388,258 | $ 8,749,229 | $ 8,669,294 | $ 8,840,382 | $ 8,424,788 | $ 7,219,279 | |
Provision for allowance for doubtful accounts | 11,496 | 7,097 | |||||
Net write-offs and recoveries | (4,519) | ||||||
Ending balance | 20,903 | ||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||||
Retained Earnings | |||||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Adjustments due to adoption of ASU 2016-13 | 1,642,621 | $ 1,145,580 | $ 1,509,317 | 1,391,425 | $ 1,002,053 | 889,948 | |
Accounting Standards Update 2016-13 | |||||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Ending balance | $ 900 | ||||||
Cumulative adjustment due to adoption of ASU | |||||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Adjustments due to adoption of ASU 2016-13 | (900) | (5,973) | |||||
Cumulative adjustment due to adoption of ASU | Retained Earnings | |||||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Adjustments due to adoption of ASU 2016-13 | $ 900 | $ (900) | $ (5,973) | ||||
COVID-19 | |||||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||||||
Ending balance | $ 6,300 |
Revenue - Opening and Closing B
Revenue - Opening and Closing Balances (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Accounts receivable, net | $ 691,589 | $ 689,134 | $ 689,134 |
Increase in accounts receivables | 2,455 | ||
Contract asset, current | 10,688 | 10,033 | |
Increase in contract asset, current | 655 | ||
Contract asset, non-current | 47,194 | 31,521 | |
Increase in contract asset, non-current | 15,673 | ||
Deferred revenue, current | 84,709 | 76,193 | |
Increase in deferred revenue, current | 8,516 | ||
Deferred revenue, non-current | 48,140 | $ 46,555 | |
Increase in deferred revenue, non-current | $ 1,585 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue, revenue recognized | $ 56.5 |
Revenue, remaining performance obligation | $ 7,300 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, requirement of payment, terms | 24 months |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||||
Net income | $ 133,350 | $ 118,957 | $ 143,852 | $ 117,747 | $ 252,307 | $ 261,599 |
Net (income) loss attributable to non-controlling interests | (46) | (325) | (211) | 6 | ||
Net income attributable to Equinix | $ 133,304 | $ 143,527 | $ 252,096 | $ 261,605 | ||
Weighted-average shares used to calculate basic EPS (in shares) | 87,303 | 84,399 | 86,427 | 83,114 | ||
Effect of dilutive securities: | ||||||
Employee equity awards (in shares) | 598 | 368 | 638 | 357 | ||
Weighted-average shares used to calculate diluted EPS (in shares) | 87,901 | 84,767 | 87,065 | 83,471 | ||
Basic EPS (in dollars per share) | $ 1.53 | $ 1.70 | $ 2.92 | $ 3.15 | ||
Diluted EPS (in dollars per share) | $ 1.52 | $ 1.69 | $ 2.90 | $ 3.13 |
Earnings Per Share - Anti-dilut
Earnings Per Share - Anti-dilutive Potential Shares of Common Stock Excluded from Computation of Earnings Per Share (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive potential shares of common stock excluded from computation of earnings per share (in shares) | 31 | 4 | 23 | 54 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Detail) $ in Thousands, € in Millions | Mar. 02, 2020USD ($) | Jan. 08, 2020USD ($)data_center | Apr. 18, 2019EUR (€) | Apr. 18, 2019USD ($) | Dec. 31, 2020USD ($)data_center_site | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) |
Business Acquisition [Line Items] | ||||||||||
Cash paid to accelerate vesting | $ 75,844 | $ 61,519 | $ 156,410 | $ 110,542 | ||||||
Transaction costs for acquisitions | 13,617 | $ 2,774 | 25,147 | $ 5,245 | ||||||
Packet Host, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Consideration transferred | $ 290,300 | |||||||||
Cash paid to accelerate vesting | $ 16,100 | |||||||||
Value of equity issued | $ 30,200 | |||||||||
Vesting period of equity issued | 3 years | |||||||||
Adjustment to provisional amounts, intangible assets | 5,900 | |||||||||
Adjustment to provisional amounts, goodwill | 4,500 | |||||||||
Packet Host, Inc. | Trade names | Measurement input, royalty rate | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Measurement input | 0.010 | |||||||||
Packet Host, Inc. | Trade names | Measurement input, discount rate | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Measurement input | 0.080 | |||||||||
Packet Host, Inc. | Customer relationships | Measurement input, discount rate | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Measurement input | 0.080 | |||||||||
Axtel | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Consideration transferred | $ 189,000 | |||||||||
Data centers purchased | data_center | 3 | |||||||||
Cash consideration for acquisition | $ 175,000 | |||||||||
Value added taxes | $ 14,000 | |||||||||
Axtel | Customer relationships | Measurement input, discount rate | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Measurement input | 0.133 | |||||||||
Packet and Axtel Acquisitions | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Transaction costs for acquisitions | 10,500 | |||||||||
Revenues from acquisitions included in results of operations | 13,300 | 21,500 | ||||||||
Net loss of acquisitions included in earnings | $ 7,000 | $ 20,300 | ||||||||
Switch Datacenters' AMS1 | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash consideration for acquisition | € 30.6 | $ 34,300 | ||||||||
Forecast | Bell Acquisition | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash consideration for acquisition | $ 750,000 | |||||||||
Data center sites purchased | data_center_site | 13 |
Acquisitions - Preliminary Purc
Acquisitions - Preliminary Purchase Price Allocation (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 02, 2020 | Jan. 08, 2020 | Dec. 31, 2019 |
Allocation of purchase price consideration | ||||
Goodwill | $ 5,016,350 | $ 4,781,858 | ||
Packet Host, Inc. | ||||
Allocation of purchase price consideration | ||||
Cash and cash equivalents | $ 1,068 | |||
Accounts receivable | 5,073 | |||
Other current assets | 117 | |||
Property, plant, and equipment | 27,945 | |||
Operating lease right-of-use assets | 1,519 | |||
Intangible assets | 62,700 | |||
Goodwill | 227,602 | |||
Other assets | 138 | |||
Total assets acquired | 326,162 | |||
Accounts payable and accrued liabilities | (1,001) | |||
Other current liabilities | (860) | |||
Operating lease liabilities | (1,519) | |||
Finance lease liabilities | (27,945) | |||
Other liabilities | 0 | |||
Deferred tax liabilities | (4,539) | |||
Net assets acquired | $ 290,298 | |||
Axtel | ||||
Allocation of purchase price consideration | ||||
Cash and cash equivalents | $ 0 | |||
Accounts receivable | 0 | |||
Other current assets | 14,048 | |||
Property, plant, and equipment | 76,407 | |||
Operating lease right-of-use assets | 1,646 | |||
Intangible assets | 22,750 | |||
Goodwill | 78,902 | |||
Other assets | 0 | |||
Total assets acquired | 193,753 | |||
Accounts payable and accrued liabilities | (238) | |||
Other current liabilities | 0 | |||
Operating lease liabilities | (1,586) | |||
Finance lease liabilities | 0 | |||
Other liabilities | (162) | |||
Deferred tax liabilities | (2,749) | |||
Net assets acquired | $ 189,018 |
Acquisitions - Intangible Asset
Acquisitions - Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 02, 2020 | Jan. 08, 2020 |
Trade names | Packet Host, Inc. | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 1,600 | |
Estimated Useful Lives (Years) | 3 years | |
Weighted-average Estimated Useful Lives (Years) | 3 years | |
Existing technology | Packet Host, Inc. | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 5,100 | |
Estimated Useful Lives (Years) | 3 years | |
Weighted-average Estimated Useful Lives (Years) | 3 years | |
Customer relationships | Packet Host, Inc. | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 56,000 | |
Estimated Useful Lives (Years) | 10 years | |
Weighted-average Estimated Useful Lives (Years) | 10 years | |
Customer relationships | Axtel | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 22,750 | |
Estimated Useful Lives (Years) | 15 years | |
Weighted-average Estimated Useful Lives (Years) | 15 years |
Assets Held for Sale (Details)
Assets Held for Sale (Details) $ in Millions | Dec. 31, 2020development_site | Jun. 30, 2020USD ($) | Oct. 08, 2019 |
Long Lived Assets Held-for-sale [Line Items] | |||
Equity method investment, ownership percentage | 20.00% | ||
GIC, Singapore Sovereign Wealth Fund | GIC | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Equity method investment, ownership percentage | 80.00% | ||
Forecast | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Equity method investment, ownership percentage | 20.00% | ||
Number of development sites | development_site | 3 | ||
Forecast | GIC, Singapore Sovereign Wealth Fund | GIC | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Equity method investment, ownership percentage | 80.00% | ||
Liabilities held-for-sale | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Liabilities held-for-sale | $ 7.2 | ||
Property, plant and equipment | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Assets held-for-sale | 141.2 | ||
Other Current Assets | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Assets held-for-sale | $ 11 |
Equity Method Investments (Deta
Equity Method Investments (Details) € in Millions, $ in Millions | Oct. 08, 2019EUR (€) | Oct. 08, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||
Proceeds from sale of data centers | $ 351.8 | ||||
Equity method investment, ownership percentage | 20.00% | ||||
Equity method investments | $ 79.8 | $ 79.8 | $ 59.7 | ||
Fair value of contingent consideration | 39.3 | 39.3 | $ 40.1 | ||
Equinix, Inc. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Additional equity contribution made to joint venture | $ 7.6 | $ 12.7 | |||
GIC | GIC, Singapore Sovereign Wealth Fund | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Contribution made to joint venture | € 152.6 | $ 167.4 | |||
Equity method investment, ownership percentage | 80.00% | ||||
Equity Method Investments | Equinix, Inc. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Fair value of equity interest in joint venture | $ 41.9 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Narrative (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Designated as hedging instruments: | Cross Currency Interest Rate Contract | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 1,597,000,000 | $ 750,000,000 |
Not designated as hedging instruments | Foreign currency forward contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 3,600,000,000 | 2,500,000,000 |
Net investment hedges | Designated as hedging instruments: | ||
Derivative [Line Items] | ||
Derivative, notional amount | 3,465,700,000 | 4,078,700,000 |
Cash flow hedges | Foreign currency forward and option contracts (included component) | ||
Derivative [Line Items] | ||
Derivative, notional amount | 984,800,000 | 824,800,000 |
Net loss to be reclassified within the next 12 months | (20,100,000) | (16,300,000) |
Cash flow hedges | Interest rate locks | ||
Derivative [Line Items] | ||
Derivative, notional amount | 618,000,000 | $ 0 |
Net loss to be reclassified within the next 12 months | 3,000,000 | |
Derivative, notional aggregate amount settled | $ 1,250,000,000 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net investment hedges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) recognized in accumulated other comprehensive income | $ (97,058) | $ (37,857) | $ 47,888 | $ 38,983 |
Amount of gain or (loss) excluded from effectiveness testing included in income: | 5,459 | 4,928 | 10,548 | 9,091 |
Cash flow hedges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) recognized in accumulated other comprehensive income: | (22,639) | (4,004) | (19,528) | 6,961 |
Amount of gain or (loss) reclassified from accumulated other comprehensive income to income: | 10,150 | 8,939 | 20,537 | 13,471 |
Amount of gain or (loss) excluded from effectiveness testing included in income: | (503) | (17) | (1,024) | 71 |
Foreign Currency Debt | Net investment hedges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) recognized in accumulated other comprehensive income | (85,215) | (34,309) | 13,887 | 29,606 |
Foreign currency forward and option contracts (included component) | Cash flow hedges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) recognized in accumulated other comprehensive income: | (22,347) | (2,599) | 5,678 | 8,366 |
Foreign currency option contracts (excluded component) | Cash flow hedges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) recognized in accumulated other comprehensive income | 358 | (1,405) | 1,676 | (1,405) |
Foreign currency option contracts (excluded component) | Cash flow hedges | Revenues | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) excluded from effectiveness testing included in income: | (503) | (17) | (1,024) | (17) |
Interest rate locks | Cash flow hedges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) recognized in accumulated other comprehensive income: | (650) | 0 | (26,882) | 0 |
Interest rate locks | Cash flow hedges | Interest Expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income to income: | 90 | 0 | 258 | 0 |
Foreign currency forward contracts | Cash flow hedges | Costs and operating expenses | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income to income: | (10,498) | (9,745) | (21,498) | (15,074) |
Foreign currency forward contracts | Cash flow hedges | Other income (expense) | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) excluded from effectiveness testing included in income: | 0 | 0 | 0 | 88 |
Foreign currency forward contracts | Cash flow hedges | Revenues | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income to income: | 20,558 | 18,684 | 41,777 | 28,545 |
Cross-currency interest rate swap | Net investment hedges | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) recognized in accumulated other comprehensive income | (10,333) | (9,689) | 3,807 | 5,826 |
Amount of gain or (loss) recognized in accumulated other comprehensive income | (1,510) | 6,141 | 30,194 | 3,551 |
Cross-currency interest rate swap | Net investment hedges | Interest Expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) excluded from effectiveness testing included in income: | $ 5,459 | $ 4,928 | $ 10,548 | $ 9,091 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivatives not designated as hedging instruments, gain (loss) | $ (113,456) | $ 10,561 | $ 19,917 | $ 19,762 |
Embedded derivatives | Revenues | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivatives not designated as hedging instruments, gain (loss) | (2,741) | (185) | 4,710 | 722 |
Economic hedge of embedded derivatives | Revenues | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivatives not designated as hedging instruments, gain (loss) | 2,301 | 598 | (5,601) | 541 |
Foreign currency forward contracts | Other income (expense) | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivatives not designated as hedging instruments, gain (loss) | $ (113,016) | $ 10,148 | $ 20,808 | $ 18,499 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities - Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Assets | $ 99,376 | $ 57,707 |
Liabilities | 81,845 | 35,612 |
Designated as hedging instruments: | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Assets | 88,222 | 51,104 |
Liabilities | 5,479 | 5,898 |
Designated as hedging instruments: | Foreign currency forward and option contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Assets | 27,084 | 24,853 |
Liabilities | 3,896 | 5,898 |
Designated as hedging instruments: | Interest rate locks | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Assets | 886 | 0 |
Liabilities | 1,583 | 0 |
Designated as hedging instruments: | Cross-currency interest rate swaps | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Assets | 60,252 | 26,251 |
Liabilities | 0 | 0 |
Not designated as hedging instruments: | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Assets | 11,154 | 6,603 |
Liabilities | 76,366 | 29,714 |
Not designated as hedging instruments: | Embedded derivatives | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Assets | 8,227 | 4,595 |
Liabilities | 1,223 | 2,268 |
Not designated as hedging instruments: | Economic hedge of embedded derivatives | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Assets | 1,937 | 1,367 |
Liabilities | 42 | 0 |
Not designated as hedging instruments: | Foreign currency forward contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Assets | 990 | 641 |
Liabilities | $ 75,101 | $ 27,446 |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities - Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative assets | ||
Gross Amounts | $ 119,426 | $ 76,640 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts | 119,426 | 76,640 |
Gross Amounts not Offset in the Balance Sheet | (60,426) | (37,820) |
Net | 59,000 | 38,820 |
Derivative liabilities | ||
Gross Amounts | 92,804 | 45,832 |
Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Net Amounts | 92,804 | 45,832 |
Gross Amounts not Offset in the Balance Sheet | (60,426) | (37,820) |
Net | $ 32,378 | $ 8,012 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Publicly traded equity securities | $ 5,927 | $ 2,779 |
Derivative instruments | 99,376 | 57,707 |
Total financial assets | 2,716,067 | 954,616 |
Liabilities: | ||
Derivative instruments | 81,845 | 35,612 |
Money market and deposit accounts | ||
Assets: | ||
Cash and cash equivalents | 2,594,622 | 886,547 |
Certificates of deposit | ||
Assets: | ||
Cash and cash equivalents | 16,142 | 7,583 |
Level 1 | ||
Assets: | ||
Publicly traded equity securities | 5,927 | 2,779 |
Derivative instruments | 0 | 0 |
Total financial assets | 2,600,549 | 889,326 |
Liabilities: | ||
Derivative instruments | 0 | 0 |
Level 1 | Money market and deposit accounts | ||
Assets: | ||
Cash and cash equivalents | 2,594,622 | 886,547 |
Level 1 | Certificates of deposit | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Level 2 | ||
Assets: | ||
Publicly traded equity securities | 0 | 0 |
Derivative instruments | 99,376 | 57,707 |
Total financial assets | 115,518 | 65,290 |
Liabilities: | ||
Derivative instruments | 81,845 | 35,612 |
Level 2 | Money market and deposit accounts | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Level 2 | Certificates of deposit | ||
Assets: | ||
Cash and cash equivalents | $ 16,142 | $ 7,583 |
Leases - Narrative (Detail)
Leases - Narrative (Detail) $ in Thousands, د.إ in Millions, $ in Millions, $ in Millions | 6 Months Ended | ||||||||
Jun. 30, 2020USD ($)renewal_optionlease | Jun. 30, 2020SGD ($)renewal_optionlease | Jun. 30, 2020AED (د.إ)renewal_optionlease | May 31, 2020renewal_option | Apr. 30, 2020renewal_option | Mar. 31, 2020HKD ($) | Mar. 31, 2020USD ($) | Feb. 29, 2020 | Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |||||||||
Number of renewal options | renewal_option | 2 | 2 | 2 | ||||||
Finance lease term | 11 years | ||||||||
Right-of-use asset, finance lease | $ 1,516,351 | $ 1,277,614 | |||||||
Lease liability, finance lease | 1,760,848 | ||||||||
Operating lease, liability | $ 1,383,195 | ||||||||
Finance lease, renewal term | 3 years | 3 years | 3 years | ||||||
Operating lease right-of-use assets | $ 1,396,101 | $ 1,475,367 | |||||||
Number of finance leases | lease | 2 | 2 | 2 | ||||||
Lease liability | $ 705,600 | ||||||||
Silicon Valley 4 Data Center | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Finance lease renewal term | 5 years | ||||||||
Finance lease term | 15 years 7 months | ||||||||
Right-of-use asset, finance lease | $ 62,800 | ||||||||
Lease liability, finance lease | $ 63,300 | ||||||||
Finance lease, renewal term | 5 years | ||||||||
Hong Kong 1 Data Center | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Finance lease term | 18 years | 18 years | |||||||
Right-of-use asset, finance lease | $ 163 | $ 21,000 | |||||||
Headquarter Office in Redwood City, California | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Finance lease renewal term | 10 years 6 months | ||||||||
Number of renewal options | renewal_option | 2 | ||||||||
Right-of-use asset, finance lease | 42,200 | ||||||||
Lease liability, finance lease | 42,200 | ||||||||
Operating lease, liability | 8,300 | ||||||||
Finance lease, renewal term | 5 years | ||||||||
Operating lease, remaining lease term | 11 years | ||||||||
Number of operating lease renewal terms | renewal_option | 2 | ||||||||
Operating lease term of contract | 10 years 6 months | ||||||||
Operating lease right-of-use assets | 8,300 | ||||||||
Singapore 1 Data Center | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Number of renewal options | renewal_option | 5 | ||||||||
Finance lease term | 18 years | ||||||||
Right-of-use asset, finance lease | 71,400 | $ 99.5 | |||||||
Lease liability, finance lease | 71,400 | 99.5 | |||||||
Finance lease, renewal term | 3 years | ||||||||
Operating lease de-recognized | 8,100 | 11.4 | |||||||
Operating lease, right-of-use asset de-recognized | $ 8,100 | $ 11.4 | |||||||
Abu Dhabi 1 Data Center | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Finance lease term | 10 years | 10 years | 10 years | ||||||
Right-of-use asset, finance lease | $ 71,300 | د.إ 261.9 | |||||||
Number of finance leases | lease | 2 | 2 | 2 | ||||||
Minimum | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Lease term of leases not yet commenced | 1 year | ||||||||
Maximum | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Lease term of leases not yet commenced | 49 years |
Leases - Lease Expenses (Detail
Leases - Lease Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Finance lease cost | ||||
Amortization of right-of-use assets | $ 28,897 | $ 19,811 | $ 54,062 | $ 39,897 |
Interest on lease liabilities | 28,438 | 27,111 | 56,263 | 54,634 |
Total finance lease cost | 57,335 | 46,922 | 110,325 | 94,531 |
Operating lease cost | 52,556 | 54,920 | 106,347 | 106,559 |
Total lease cost | $ 109,891 | $ 101,842 | $ 216,672 | $ 201,090 |
Leases - Other Information (Det
Leases - Other Information (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Accumulated amortization, finance lease, right-of-use asset | $ 528,600 | $ 474,800 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from finance leases | 54,417 | $ 52,701 | |
Operating cash flows from operating leases | 102,146 | 101,875 | |
Financing cash flows from finance leases | 42,681 | 43,112 | |
Right-of-use assets obtained in exchange for lease obligations | |||
Finance leases | 311,951 | 2,597 | |
Operating leases | $ 14,114 | $ 77,905 | |
Weighted-average remaining lease term - finance leases | 15 years | 15 years | |
Weighted-average remaining lease term - operating leases | 13 years | 13 years | |
Weighted-average discount rate - finance leases | 8.00% | 9.00% | |
Weighted-average discount rate - operating leases | 4.00% | 4.00% | |
Right-of-use asset, finance lease | $ 1,516,351 | $ 1,277,614 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Detail) $ in Thousands | Jun. 30, 2020USD ($) |
Operating Leases | |
2020 (6 months remaining) | $ 87,527 |
2021 | 192,368 |
2022 | 184,049 |
2023 | 168,561 |
2024 | 156,627 |
Thereafter | 1,094,015 |
Total lease payments | 1,883,147 |
Plus amount representing residual property value | 0 |
Less imputed interest | (499,952) |
Total | 1,383,195 |
Finance Leases | |
2020 (6 months remaining) | 95,454 |
2021 | 205,435 |
2022 | 202,461 |
2023 | 197,071 |
2024 | 194,842 |
Thereafter | 1,975,440 |
Total lease payments | 2,870,703 |
Plus amount representing residual property value | 17,626 |
Less imputed interest | (1,127,481) |
Total | 1,760,848 |
Total | |
2020 (6 months remaining) | 182,981 |
2021 | 397,803 |
2022 | 386,510 |
2023 | 365,632 |
2024 | 351,469 |
Thereafter | 3,069,455 |
Total lease payments | 4,753,850 |
Plus amount representing residual property value | 17,626 |
Less imputed interest | (1,627,433) |
Total | $ 3,144,043 |
Debt Facilities - Mortgage and
Debt Facilities - Mortgage and Loans Payable (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long term debt, gross | $ 1,295,833 | $ 1,370,118 |
Less the amount representing debt discount and debt issuance cost | (3,927) | (4,849) |
Loans payable current and non current | 1,293,638 | 1,367,037 |
Less current portion | (75,589) | (77,603) |
Loans payable, noncurrent | 1,218,049 | 1,289,434 |
Term loans | ||
Debt Instrument [Line Items] | ||
Long term debt, gross | 1,218,259 | 1,287,151 |
Mortgage payable and other loans payable | ||
Debt Instrument [Line Items] | ||
Long term debt, gross | 77,574 | 82,967 |
Mortgage | ||
Debt Instrument [Line Items] | ||
Add amount representing unamortized mortgage premium | $ 1,732 | $ 1,768 |
Debt Facilities - Additional In
Debt Facilities - Additional Information (Details) € in Millions | Jul. 07, 2020USD ($) | Apr. 15, 2020EUR (€) | Apr. 15, 2020USD ($) | Jan. 02, 2020USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2020USD ($)letter_of_credit | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)letter_of_credit | Jun. 30, 2019USD ($) | Jun. 22, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 12, 2017USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Remaining Performance Obligations | Contract Balances The following table summarizes the opening and closing balances of the Company's accounts receivable, net; contract asset, current; contract asset, non-current; deferred revenue, current; and deferred revenue, non-current (in thousands): Accounts receivable, net Contract asset, current Contract asset, non-current Deferred revenue, current Deferred revenue, non-current Beginning balances as of January 1, 2020 $ 689,134 $ 10,033 $ 31,521 $ 76,193 $ 46,555 Closing balances as of June 30, 2020 691,589 10,688 47,194 84,709 48,140 Increase $ 2,455 $ 655 $ 15,673 $ 8,516 $ 1,585 The difference between the opening and closing balances of the Company's accounts receivable, net, contract assets and deferred revenues primarily results from revenue growth and the timing difference between the satisfaction of the Company's performance obligation and the customer's payment, as well as business combinations closed during the six months ended June 30, 2020 . The amounts of revenue recognized during the six months ended June 30, 2020 from the opening deferred revenue balance as of January 1, 2020 was $56.5 million . Remaining performance obligations As of June 30, 2020 , approximately $7.3 billion of total revenues, including deferred installation revenues, are expected to be recognized in future periods, the majority of which will be recognized over the next 24 months . While initial contract terms vary in length, substantially all contracts thereafter automatically renew in one-year increments. Included in the remaining performance obligations is either 1) remaining performance obligations under the initial contract terms or 2) remaining performance obligations related to contracts in the renewal period once the initial terms have lapsed. The remaining performance obligations do not include variable consideration related to unsatisfied performance obligations such as the usage of metered power, service fees from xScale TM data centers, which are calculated based on future events or actual costs incurred in the future, or any contracts that could be terminated without any significant penalties such as the majority of interconnection revenues. The remaining performance obligations above include revenues to be recognized in the future related to arrangements where the Company is considered the lessor. | |||||||||||
Loss on debt extinguishment | $ 1,868,000 | $ 0 | $ 8,309,000 | $ 382,000 | ||||||||
Amount of debt discounts and debt issuance costs | 3,927,000 | 3,927,000 | $ 4,849,000 | |||||||||
Interest paid, net of capitalized interest | $ 115,800,000 | $ 107,400,000 | $ 238,600,000 | $ 243,600,000 | ||||||||
Line of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Borrowing capacity | $ 3,000,000,000 | |||||||||||
Senior Notes | 5.375% Senior Notes due 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (percent) | 5.375% | 5.375% | 5.375% | |||||||||
Redemption of senior debt | $ 343,700,000 | |||||||||||
Loss on debt extinguishment | 5,900,000 | |||||||||||
Redemption premium | 4,600,000 | |||||||||||
Write off of unamortized debt issuance | $ 1,300,000 | |||||||||||
Senior Notes | 1.250% Senior Notes due 2025 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (percent) | 1.25% | |||||||||||
Aggregate principal debt amount issued | $ 500,000,000 | |||||||||||
Amount of debt discounts and debt issuance costs | $ 5,300,000 | |||||||||||
Senior Notes | 1.800% Senior Notes due 2027 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (percent) | 1.80% | |||||||||||
Aggregate principal debt amount issued | $ 500,000,000 | |||||||||||
Amount of debt discounts and debt issuance costs | $ 5,600,000 | |||||||||||
Senior Notes | 2.150% Senior Notes due 2030 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (percent) | 2.15% | |||||||||||
Aggregate principal debt amount issued | $ 1,100,000,000 | |||||||||||
Amount of debt discounts and debt issuance costs | $ 12,900,000 | |||||||||||
Senior Notes | 3.000% Senior Notes due 2050 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate (percent) | 3.00% | |||||||||||
Aggregate principal debt amount issued | $ 500,000,000 | |||||||||||
Amount of debt discounts and debt issuance costs | $ 14,200,000 | |||||||||||
Subsequent Event | Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loss on debt extinguishment | $ 93,500,000 | |||||||||||
Redemption premium | 77,800,000 | |||||||||||
Write off of unamortized debt issuance | $ 15,700,000 | |||||||||||
Letter of Credit | Line of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Borrowing capacity | $ 250,000,000 | |||||||||||
Numbers of letters of credit outstanding | letter_of_credit | 43 | 43 | ||||||||||
Letters of credit outstanding, amount | $ 72,400,000 | $ 72,400,000 | ||||||||||
Revolving Credit Facility | Line of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Borrowing capacity | 2,000,000,000 | |||||||||||
Proceeds from issuance of debt | $ 250,000,000 | |||||||||||
Amount available to borrow | $ 1,900,000,000 | $ 1,900,000,000 | ||||||||||
Unsecured Debt | Line of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Borrowing capacity | $ 1,000,000,000 | |||||||||||
Notes Payable to Banks | Senior Unsecured 364-Day Term Loan Facilities | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 750,000,000 | |||||||||||
Notes Payable to Banks | Closing Date Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | 500,000,000 | |||||||||||
Notes Payable to Banks | Closing Date Facility, Series 1 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Proceeds from unsecured lines of credit | 391,000,000 | |||||||||||
Notes Payable to Banks | Closing Date Facility, Series 2 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Proceeds from unsecured lines of credit | € 100 | 109,800,000 | ||||||||||
Notes Payable to Banks | Delayed Draw Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 250,000,000 |
Debt Facilities - Senior Notes
Debt Facilities - Senior Notes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 22, 2020 | Jan. 02, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||||||
Long term debt, gross | $ 1,295,833 | $ 1,295,833 | $ 1,370,118 | ||||
Total long term debt | 12,437,740 | 12,437,740 | |||||
Interest paid, net of capitalized interest | 115,800 | $ 107,400 | 238,600 | $ 243,600 | |||
Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long term debt, gross | 11,140,175 | 11,140,175 | 9,029,211 | ||||
Less amount representing unamortized debt issuance cost | (108,519) | (108,519) | (78,030) | ||||
Add amount representing unamortized debt premium | 745 | 745 | 1,716 | ||||
Total long term debt | 11,032,401 | 11,032,401 | 8,952,897 | ||||
Less current portion | (2,227,768) | (2,227,768) | (643,224) | ||||
Total | 8,804,633 | 8,804,633 | 8,309,673 | ||||
Senior Notes | 5.000% Infomart Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long term debt, gross | $ 300,000 | $ 300,000 | $ 450,000 | ||||
Effective interest rate | 4.49% | 4.49% | 4.46% | ||||
Interest rate (percent) | 5.00% | 5.00% | |||||
Senior Notes | 5.375% Senior Notes due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Long term debt, gross | $ 0 | $ 0 | $ 343,711 | ||||
Effective interest rate | 0.00% | 0.00% | 5.56% | ||||
Interest rate (percent) | 5.375% | 5.375% | 5.375% | ||||
Senior Notes | 2.625% Senior Notes due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Long term debt, gross | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | ||||
Effective interest rate | 2.79% | 2.79% | 2.79% | ||||
Interest rate (percent) | 2.625% | 2.625% | |||||
Senior Notes | 2.875% Euro Senior Notes due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Long term debt, gross | $ 842,775 | $ 842,775 | $ 841,500 | ||||
Effective interest rate | 3.08% | 3.08% | 3.08% | ||||
Interest rate (percent) | 2.875% | 2.875% | |||||
Senior Notes | 2.875% Euro Senior Notes due 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Long term debt, gross | $ 1,123,700 | $ 1,123,700 | $ 1,122,000 | ||||
Effective interest rate | 3.04% | 3.04% | 3.04% | ||||
Interest rate (percent) | 2.875% | 2.875% | |||||
Senior Notes | 2.900% Senior Notes due 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Long term debt, gross | $ 600,000 | $ 600,000 | $ 600,000 | ||||
Effective interest rate | 3.04% | 3.04% | 3.04% | ||||
Interest rate (percent) | 2.90% | 2.90% | |||||
Senior Notes | 5.875% Senior Notes due 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Long term debt, gross | $ 1,100,000 | $ 1,100,000 | $ 1,100,000 | ||||
Effective interest rate | 6.03% | 6.03% | 6.03% | ||||
Interest rate (percent) | 5.875% | 5.875% | |||||
Senior Notes | 2.875% Euro Senior Notes due 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Long term debt, gross | $ 1,123,700 | $ 1,123,700 | $ 1,122,000 | ||||
Effective interest rate | 3.04% | 3.04% | 3.04% | ||||
Interest rate (percent) | 2.875% | 2.875% | |||||
Senior Notes | 5.375% Senior Notes due 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Long term debt, gross | $ 1,250,000 | $ 1,250,000 | $ 1,250,000 | ||||
Effective interest rate | 5.51% | 5.51% | 5.51% | ||||
Interest rate (percent) | 5.375% | 5.375% | |||||
Senior Notes | 3.200% Senior Notes due 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Long term debt, gross | $ 1,200,000 | $ 1,200,000 | $ 1,200,000 | ||||
Effective interest rate | 3.30% | 3.30% | 3.30% | ||||
Interest rate (percent) | 3.20% | 3.20% | |||||
Senior Notes | 1.250% Senior Notes due 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Long term debt, gross | $ 500,000 | $ 500,000 | $ 0 | ||||
Effective interest rate | 1.46% | 1.46% | 0.00% | ||||
Interest rate (percent) | 1.25% | ||||||
Senior Notes | 1.800% Senior Notes due 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Long term debt, gross | $ 500,000 | $ 500,000 | $ 0 | ||||
Effective interest rate | 1.96% | 1.96% | 0.00% | ||||
Interest rate (percent) | 1.80% | ||||||
Senior Notes | 2.150% Senior Notes due 2030 | |||||||
Debt Instrument [Line Items] | |||||||
Long term debt, gross | $ 1,100,000 | $ 1,100,000 | $ 0 | ||||
Effective interest rate | 2.27% | 2.27% | 0.00% | ||||
Interest rate (percent) | 2.15% | ||||||
Senior Notes | 3.000% Senior Notes due 2050 | |||||||
Debt Instrument [Line Items] | |||||||
Long term debt, gross | $ 500,000 | $ 500,000 | $ 0 | ||||
Effective interest rate | 3.09% | 3.09% | 0.00% | ||||
Interest rate (percent) | 3.00% |
Debt Facilities - Summary of Ma
Debt Facilities - Summary of Maturities of Debt Instruments (Detail) $ in Thousands | Jun. 30, 2020USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2020 (6 months remaining) | $ 2,130,697 |
2021 | 225,580 |
2022 | 1,148,837 |
2023 | 6,510 |
2024 | 1,006,031 |
Thereafter | 7,920,085 |
Total long term debt | $ 12,437,740 |
Debt Facilities - Fair Value of
Debt Facilities - Fair Value of Debt Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Mortgage and loans payable | $ 1,304,463 | $ 1,378,429 |
Senior notes | $ 11,580,351 | $ 9,339,497 |
Senior Notes | 5.000% Infomart Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest rate (percent) | 5.00% |
Debt Facilities - Interest Char
Debt Facilities - Interest Charges (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Debt Disclosure [Abstract] | ||||
Interest expense | $ 108,480 | $ 120,547 | $ 215,818 | $ 243,393 |
Interest capitalized | 6,880 | 5,910 | 12,911 | 15,764 |
Interest charges incurred | $ 115,360 | $ 126,457 | $ 228,729 | $ 259,157 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) - Jun. 30, 2020 € in Millions, £ in Millions, $ in Millions | EUR (€) | USD ($) | GBP (£) |
Capital expenditures | |||
Other Commitments [Line Items] | |||
Purchase commitments | $ 1,100 | ||
Miscellaneous purchase commitments | |||
Other Commitments [Line Items] | |||
Purchase commitments | 1,100 | ||
Equity Contribution Commitment | Joint Venture | Equity Contribution Commitment | Equinix, Inc. | |||
Other Commitments [Line Items] | |||
Other commitment | € 12.3 | $ 26.5 | £ 10.3 |
Stockholders' Equity - Rollforw
Stockholders' Equity - Rollforward (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
May 31, 2020 | Mar. 31, 2019 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance (in shares) | (85,308,386) | (85,308,386) | ||||||
Beginning balance | $ 8,669,294 | $ 8,840,382 | $ 8,424,788 | $ 7,219,279 | $ 8,840,382 | $ 7,219,279 | ||
Net income | 133,350 | 118,957 | 143,852 | 117,747 | $ 252,307 | 261,599 | ||
Other comprehensive loss | 66,380 | (272,067) | (16,092) | 3,344 | ||||
Issuance of common stock and release of treasury stock for employee equity awards | 0 | 30,390 | 0 | 27,593 | ||||
Issuance of common stock (in shares) | 2,587,500 | 2,985,575 | ||||||
Issuance of common stock | $ 1,683,100 | $ 1,213,400 | ||||||
Dividend distribution on common stock | (235,334) | (227,387) | (207,949) | (198,933) | ||||
Settlement of accrued dividends on vested equity awards | (44) | (294) | (21) | (103) | ||||
Accrued dividends on unvested equity awards | (4,136) | (3,268) | (2,972) | (2,395) | ||||
Stock-based compensation, net of estimated forfeitures | $ 75,642 | 81,690 | 59,502 | 50,795 | ||||
Ending balance (in shares) | (88,549,394) | (88,549,394) | ||||||
Ending balance | 8,424,788 | $ 10,388,258 | 8,669,294 | 8,749,229 | 8,424,788 | $ 10,388,258 | 8,749,229 | |
Equinix Stockholders' Equity | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 8,669,364 | 8,840,606 | 8,425,112 | 7,219,279 | 8,840,606 | 7,219,279 | ||
Net income | 133,304 | 118,792 | 143,527 | 118,078 | ||||
Other comprehensive loss | 66,378 | (272,056) | (16,078) | 3,337 | ||||
Issuance of common stock and release of treasury stock for employee equity awards | 30,390 | 27,593 | ||||||
Dividend distribution on common stock | (235,334) | (227,387) | (207,949) | (198,933) | ||||
Settlement of accrued dividends on vested equity awards | (44) | (294) | (21) | (103) | ||||
Accrued dividends on unvested equity awards | (4,136) | (3,268) | (2,972) | (2,395) | ||||
Stock-based compensation, net of estimated forfeitures | 75,642 | 81,690 | 59,502 | 50,795 | ||||
Ending balance | $ 8,425,112 | $ 10,388,280 | $ 8,669,364 | $ 8,749,242 | $ 8,425,112 | $ 10,388,280 | $ 8,749,242 | |
Common Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance (in shares) | (86,269,033) | (85,700,953) | (84,465,156) | (81,119,117) | (85,700,953) | (81,119,117) | ||
Beginning balance | $ 86 | $ 86 | $ 84 | $ 81 | $ 86 | $ 81 | ||
Issuance of common stock and release of treasury stock for employee equity awards (in shares) | 34,146 | 405,550 | 26,435 | 360,464 | ||||
Ending balance (in shares) | (84,465,156) | (88,890,679) | (86,269,033) | (85,213,952) | (84,465,156) | (88,890,679) | (85,213,952) | |
Ending balance | $ 84 | $ 89 | $ 86 | $ 85 | $ 84 | $ 89 | $ 85 | |
Treasury Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance (in shares) | (341,973) | (392,567) | (395,153) | (396,859) | (392,567) | (396,859) | ||
Beginning balance | $ (127,298) | $ (144,256) | $ (144,801) | $ (145,161) | $ (144,256) | $ (145,161) | ||
Issuance of common stock and release of treasury stock for employee equity awards (in shares) | 688 | 50,594 | 359 | 1,706 | ||||
Issuance of common stock and release of treasury stock for employee equity awards | $ 256 | $ 16,958 | $ 76 | $ 360 | ||||
Ending balance (in shares) | (395,153) | (341,285) | (341,973) | (394,794) | (395,153) | (341,285) | (394,794) | |
Ending balance | $ (144,801) | $ (127,042) | $ (127,298) | $ (144,725) | $ (144,801) | $ (127,042) | $ (144,725) | |
Additional Paid-in Capital | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 12,893,455 | 12,696,433 | 12,043,056 | 10,751,313 | 12,696,433 | 10,751,313 | ||
Issuance of common stock and release of treasury stock for employee equity awards | (256) | 13,432 | (76) | 27,233 | ||||
Settlement of accrued dividends on vested equity awards | 0 | 109 | 12 | 284 | ||||
Stock-based compensation, net of estimated forfeitures | 75,642 | 81,690 | 59,502 | 50,795 | ||||
Ending balance | 12,043,056 | 14,651,944 | 12,893,455 | 12,450,614 | 12,043,056 | 14,651,944 | 12,450,614 | |
Accumulated Dividends | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | (4,399,527) | (4,168,469) | (3,532,915) | (3,331,200) | (4,168,469) | (3,331,200) | ||
Dividend distribution on common stock | (235,334) | (227,387) | (207,949) | (198,933) | ||||
Settlement of accrued dividends on vested equity awards | (44) | (403) | (33) | (387) | ||||
Accrued dividends on unvested equity awards | (4,136) | (3,268) | (2,972) | (2,395) | ||||
Ending balance | (3,532,915) | (4,639,041) | (4,399,527) | (3,743,869) | (3,532,915) | (4,639,041) | (3,743,869) | |
AOCI (Loss) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | (1,206,669) | (934,613) | (942,365) | (945,702) | (934,613) | (945,702) | ||
Other comprehensive loss | 66,378 | (272,056) | (16,078) | 3,337 | (205,678) | |||
Ending balance | (942,365) | (1,140,291) | (1,206,669) | (958,443) | (942,365) | (1,140,291) | (958,443) | |
Retained Earnings | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 1,509,317 | 1,391,425 | 1,002,053 | 889,948 | 1,391,425 | 889,948 | ||
Net income | 133,304 | 118,792 | 143,527 | 118,078 | ||||
Ending balance | 1,002,053 | 1,642,621 | 1,509,317 | 1,145,580 | 1,002,053 | 1,642,621 | 1,145,580 | |
Noncontrolling Interests | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | (70) | (224) | (324) | 0 | (224) | 0 | ||
Net income | 46 | 165 | 325 | (331) | ||||
Other comprehensive loss | 2 | (11) | (14) | 7 | ||||
Ending balance | $ (324) | (22) | (70) | (13) | (324) | (22) | (13) | |
Cumulative adjustment due to adoption of ASU | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | (900) | (5,973) | (900) | (5,973) | ||||
Cumulative adjustment due to adoption of ASU | Equinix Stockholders' Equity | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | (900) | (5,973) | (900) | (5,973) | ||||
Cumulative adjustment due to adoption of ASU | Retained Earnings | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | (900) | (5,973) | $ (900) | $ (5,973) | ||||
Public Offering | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock | 1,683,106 | 1,213,434 | ||||||
Public Offering | Equinix Stockholders' Equity | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock | $ 1,683,106 | $ 1,213,434 | ||||||
Public Offering | Common Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock (in shares) | 2,587,500 | 2,985,575 | ||||||
Issuance of common stock | $ 3 | $ 3 | ||||||
Public Offering | Additional Paid-in Capital | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock | $ 1,683,103 | $ 1,213,431 | ||||||
ATM Program | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock (in shares) | 162,530 | 722,361 | ||||||
Issuance of common stock | 101,791 | 348,121 | $ 101,800 | $ 348,200 | ||||
ATM Program | Equinix Stockholders' Equity | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock | $ 101,791 | $ 348,121 | ||||||
ATM Program | Common Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock (in shares) | 162,530 | 722,361 | ||||||
Issuance of common stock | $ 1 | |||||||
ATM Program | Additional Paid-in Capital | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock | $ 101,791 | $ 348,120 |
Stockholders' Equity - Rollfo_2
Stockholders' Equity - Rollforward - Additional Information (Details) - $ / shares | 3 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | |
Equity [Abstract] | ||||
Dividend distribution on common stock (in dollars per share) | $ 2.66 | $ 2.66 | $ 2.46 | $ 2.46 |
Stockholders' Equity - Componen
Stockholders' Equity - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | $ 8,669,294 | $ 8,840,382 | $ 8,424,788 | $ 7,219,279 | $ 8,840,382 |
Net Change | 66,380 | (272,067) | (16,092) | 3,344 | |
Ending balance | 10,388,258 | 8,669,294 | 8,749,229 | 8,424,788 | 10,388,258 |
Accumulated other comprehensive loss attributable to Equinix | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | (1,206,669) | (934,613) | (942,365) | (945,702) | (934,613) |
Net Change | 66,378 | (272,056) | (16,078) | 3,337 | (205,678) |
Ending balance | (1,140,291) | (1,206,669) | $ (958,443) | $ (942,365) | (1,140,291) |
Foreign currency translation adjustment (“CTA”) loss | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | (1,056,918) | (1,056,918) | |||
Net Change | (232,497) | ||||
Ending balance | (1,289,415) | (1,289,415) | |||
Unrealized loss on cash flow hedges | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | 15,638 | 15,638 | |||
Net Change | (21,124) | ||||
Ending balance | (5,486) | (5,486) | |||
Net investment hedge CTA gain (loss) | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | 107,619 | 107,619 | |||
Net Change | 47,888 | ||||
Ending balance | 155,507 | 155,507 | |||
Net actuarial gain (loss) on defined benefit plans | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | $ (952) | (952) | |||
Net Change | 55 | ||||
Ending balance | $ (897) | $ (897) |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
May 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Issuance of common stock in public offering of common stock (in shares) | 2,587,500 | 2,985,575 | |||||
Issuance of common stock in public offering of common stock | $ 1,683,100,000 | $ 1,213,400,000 | |||||
Restricted stock units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock units, approved (in shares) | 680,543 | ||||||
Weighted-average grant date fair value (in dollars per share) | $ 583.99 | ||||||
Service period (in years) | 3 years 3 months 29 days | ||||||
ATM Program | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Issuance of common stock in public offering of common stock (in shares) | 162,530 | 722,361 | |||||
Issuance of common stock in public offering of common stock | $ 101,791,000 | $ 348,121,000 | $ 101,800,000 | $ 348,200,000 | |||
Sale of stock, equity offering agreement, authorized | $ 750,000,000 |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Compensation Expense Recognized in Company's Condensed Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Cash paid to accelerate vesting | $ 75,844 | $ 61,519 | $ 156,410 | $ 110,542 |
Cost of revenues | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Cash paid to accelerate vesting | 7,655 | 6,500 | 16,998 | 11,512 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Cash paid to accelerate vesting | 18,215 | 15,157 | 36,760 | 28,458 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Cash paid to accelerate vesting | $ 49,974 | $ 39,862 | $ 102,652 | $ 70,572 |
Segment Information - Narrative
Segment Information - Narrative (Detail) | 6 Months Ended |
Jun. 30, 2020segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Revenue I
Segment Information - Revenue Information on Services Basis (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue from External Customer [Line Items] | ||||
Revenues | $ 1,470,121 | $ 1,384,977 | $ 2,914,663 | $ 2,748,195 |
Recurring Revenues | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 1,398,138 | 1,306,045 | 2,759,832 | 2,580,873 |
Colocation | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 1,057,445 | 1,005,615 | 2,091,822 | 1,986,386 |
Interconnection | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 249,431 | 219,031 | 491,572 | 431,815 |
Managed infrastructure services | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 80,051 | 73,772 | 157,541 | 146,567 |
Service, Other | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 11,211 | 7,627 | 18,897 | 16,105 |
Non-Recurring Revenues | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 71,983 | 78,932 | 154,831 | 167,322 |
Americas | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 661,419 | 644,420 | 1,323,324 | 1,288,786 |
Americas | Recurring Revenues | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 634,855 | 614,806 | 1,267,487 | 1,221,116 |
Americas | Colocation | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 447,498 | 444,086 | 898,452 | 884,067 |
Americas | Interconnection | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 153,387 | 142,460 | 304,316 | 281,023 |
Americas | Managed infrastructure services | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 28,889 | 22,908 | 54,418 | 44,695 |
Americas | Service, Other | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 5,081 | 5,352 | 10,301 | 11,331 |
Americas | Non-Recurring Revenues | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 26,564 | 29,614 | 55,837 | 67,670 |
EMEA | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 488,090 | 449,855 | 966,999 | 884,515 |
EMEA | Recurring Revenues | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 467,190 | 417,081 | 910,664 | 817,318 |
EMEA | Colocation | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 381,144 | 347,795 | 743,474 | 678,920 |
EMEA | Interconnection | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 50,904 | 38,614 | 99,445 | 76,139 |
EMEA | Managed infrastructure services | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 29,012 | 28,397 | 59,149 | 57,485 |
EMEA | Service, Other | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 6,130 | 2,275 | 8,596 | 4,774 |
EMEA | Non-Recurring Revenues | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 20,900 | 32,774 | 56,335 | 67,197 |
Asia-Pacific | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 320,612 | 290,702 | 624,340 | 574,894 |
Asia-Pacific | Recurring Revenues | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 296,093 | 274,158 | 581,681 | 542,439 |
Asia-Pacific | Colocation | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 228,803 | 213,734 | 449,896 | 423,399 |
Asia-Pacific | Interconnection | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 45,140 | 37,957 | 87,811 | 74,653 |
Asia-Pacific | Managed infrastructure services | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 22,150 | 22,467 | 43,974 | 44,387 |
Asia-Pacific | Service, Other | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Asia-Pacific | Non-Recurring Revenues | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | $ 24,519 | $ 16,544 | $ 42,659 | $ 32,455 |
Segment Information - Schedule
Segment Information - Schedule of Adjusted EBITDA (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Total adjusted EBITDA | $ 720,041 | $ 677,010 | $ 1,404,251 | $ 1,337,165 |
Depreciation, amortization and accretion expense | (348,434) | (320,550) | (685,865) | (635,255) |
Stock-based compensation expense | (75,844) | (61,519) | (156,410) | (110,542) |
Impairment charges | 0 | (386) | 0 | (14,834) |
Transaction costs | (13,617) | (2,774) | (25,147) | (5,245) |
Gain (loss) on asset sales | 342 | 0 | (857) | 0 |
Income from operations | 282,488 | 291,781 | 535,972 | 571,289 |
Americas | ||||
Segment Reporting Information [Line Items] | ||||
Total adjusted EBITDA | 302,107 | 309,052 | 595,720 | 616,890 |
EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Total adjusted EBITDA | 243,597 | 209,645 | 473,755 | 408,717 |
Asia-Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Total adjusted EBITDA | $ 174,337 | $ 158,313 | $ 334,776 | $ 311,558 |
Segment Information - Segment D
Segment Information - Segment Disclosures (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Total depreciation and amortization | $ 348,593 | $ 319,224 | $ 684,462 | $ 632,402 |
Capital expenditures | 481,948 | 444,171 | 882,889 | 808,138 |
Americas | ||||
Segment Reporting Information [Line Items] | ||||
Total depreciation and amortization | 180,934 | 167,244 | 352,008 | 334,014 |
Capital expenditures | 181,913 | 173,623 | 366,314 | 318,118 |
EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Total depreciation and amortization | 93,012 | 87,980 | 185,386 | 172,145 |
Capital expenditures | 197,264 | 170,851 | 319,392 | 335,206 |
Asia-Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Total depreciation and amortization | 74,647 | 64,000 | 147,068 | 126,243 |
Capital expenditures | $ 102,771 | $ 99,697 | $ 197,183 | $ 154,814 |
Segment Information - Long-Live
Segment Information - Long-Lived Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Company's long-lived assets | $ 12,663,827 | $ 12,152,597 |
Operating lease right-of-use assets | 1,396,101 | 1,475,367 |
Americas | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Company's long-lived assets | 5,649,000 | 5,400,287 |
Operating lease right-of-use assets | 368,959 | 387,598 |
EMEA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Company's long-lived assets | 4,321,446 | 4,051,701 |
Operating lease right-of-use assets | 498,334 | 521,129 |
Asia-Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Company's long-lived assets | 2,693,381 | 2,700,609 |
Operating lease right-of-use assets | $ 528,808 | $ 566,640 |
Subsequent Events (Detail)
Subsequent Events (Detail) $ / shares in Units, $ in Thousands, € in Millions | Jul. 29, 2020$ / shares | Jul. 07, 2020EUR (€) | Jul. 07, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) |
Subsequent Event [Line Items] | |||||||
Loss on debt extinguishment | $ 1,868 | $ 0 | $ 8,309 | $ 382 | |||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Cash dividends declared (in dollars per share) | $ / shares | $ 2.66 | ||||||
Senior Notes | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Loss on debt extinguishment | $ 93,500 | ||||||
Amount representing redemption premium | 77,800 | ||||||
Write off of unamortized debt issuance | 15,700 | ||||||
Senior Notes | 2.875% Euro Senior Notes due 2024 | |||||||
Subsequent Event [Line Items] | |||||||
Interest rate (percent) | 2.875% | 2.875% | |||||
Senior Notes | 2.875% Euro Senior Notes due 2024 | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Redemption of senior debt | € | € 750 | ||||||
Senior Notes | 5.875% Senior Notes due 2026 | |||||||
Subsequent Event [Line Items] | |||||||
Interest rate (percent) | 5.875% | 5.875% | |||||
Senior Notes | 5.875% Senior Notes due 2026 | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Redemption of senior debt | $ 1,100,000 |
Uncategorized Items - eqix-6302
Label | Element | Value |
Restricted Cash and Cash Equivalents, Noncurrent | us-gaap_RestrictedCashAndCashEquivalentsNoncurrent | $ 10,090,000 |
Restricted Cash and Cash Equivalents, Noncurrent | us-gaap_RestrictedCashAndCashEquivalentsNoncurrent | 8,798,000 |
Restricted Cash and Cash Equivalents, Current | us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue | 13,673,000 |
Restricted Cash and Cash Equivalents, Current | us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue | $ 13,293,000 |