Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 23, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-35789 | |
Entity Registrant Name | CyrusOne Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 46-0691837 | |
Entity Address, Address Line One | 2850 N. Harwood Street | |
Entity Address, Address Line Two | Suite 2200 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75201 | |
City Area Code | 972 | |
Local Phone Number | 350-0060 | |
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 | 120,422,556 | |
Entity Central Index Key | 0001553023 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Stock, $0.01 par value | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | CONE | |
Security Exchange Name | NASDAQ | |
1.450% Senior Notes due 2027 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 1.450% Senior Notes due 2027 | |
Trading Symbol | CONE27 | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Investment in real estate: | ||
Land | $ 181.2 | $ 147.6 |
Buildings and improvements | 1,918.4 | 1,761.4 |
Equipment | 3,341.7 | 3,028.2 |
Gross operating real estate | 5,441.3 | 4,937.2 |
Less accumulated depreciation | (1,663.4) | (1,379.2) |
Net operating real estate | 3,777.9 | 3,558 |
Construction in progress, including land under development | 1,085.9 | 946.3 |
Land held for future development | 264.4 | 206 |
Total investment in real estate, net | 5,128.2 | 4,710.3 |
Cash and cash equivalents | 156.5 | 76.4 |
Rent and other receivables (net of allowance for doubtful accounts of $2.0 and $1.8 as of September 30, 2020 and December 31, 2019, respectively) | 306.9 | 291.9 |
Restricted cash | 1.4 | 1.3 |
Operating lease right-of-use assets, net | 206.9 | 161.9 |
Equity investments | 178.1 | 135.1 |
Goodwill | 455.1 | 455.1 |
Intangible assets (net of accumulated amortization of $237.1 and $207.5 as of September 30, 2020 and December 31, 2019, respectively) | 166.4 | 196.1 |
Other assets | 112.8 | 113.9 |
Total assets | 6,712.3 | 6,142 |
Liabilities and equity | ||
Debt | 3,197.8 | 2,886.6 |
Finance lease liabilities | 29.2 | 31.8 |
Operating lease liabilities | 244.3 | 195.8 |
Construction costs payable | 168.2 | 176.3 |
Accounts payable and accrued expenses | 145.3 | 122.7 |
Dividends payable | 63.1 | 58.6 |
Deferred revenue and prepaid rents | 166.8 | 163.7 |
Deferred tax liability | 55.4 | 60.5 |
Other liabilities | 37.8 | 11.4 |
Total liabilities | 4,107.9 | 3,707.4 |
Commitments and contingencies | ||
Stockholders' equity | ||
Preferred stock, $0.01 par value, 100,000,000 authorized; no shares issued or outstanding | 0 | 0 |
Common stock, $0.01 par value, 500,000,000 shares authorized and 120,422,556 and 114,808,898 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 1.2 | 1.1 |
Additional paid in capital | 3,532.9 | 3,202 |
Accumulated deficit | (923.9) | (767.3) |
Accumulated other comprehensive loss | (5.8) | (1.2) |
Total stockholders’ equity | 2,604.4 | 2,434.6 |
Total liabilities and equity | $ 6,712.3 | $ 6,142 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 2 | $ 1.8 |
Accumulated amortization for intangible assets | $ 237.1 | $ 207.5 |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock issued (in shares) | 120,422,556 | 114,808,898 |
Common stock outstanding (in shares) | 120,422,556 | 114,808,898 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenue | $ 262.8 | $ 250.9 | $ 765.1 | $ 727.4 |
Operating expenses: | ||||
Property operating expenses | 109.7 | 103 | 301.3 | 289.6 |
Sales and marketing | 4.5 | 5.1 | 13 | 15.7 |
General and administrative | 29.7 | 19.8 | 76.9 | 61.6 |
Depreciation and amortization | 113.1 | 105.4 | 330.9 | 309.6 |
Transaction, acquisition, integration and other related expenses | 1.6 | 4.4 | 2.1 | 6.2 |
Impairment losses | 8.8 | 0.7 | 11.2 | 0.7 |
Total operating expenses | 267.4 | 238.4 | 735.4 | 683.4 |
Operating (loss) income | (4.6) | 12.5 | 29.7 | 44 |
Interest expense, net | (13.3) | (19.6) | (43.2) | (64.4) |
Gain on marketable equity investment | 4.7 | 12.4 | 69.8 | 105.1 |
Loss on early extinguishment of debt | (3.1) | 0 | (6.5) | 0 |
Foreign currency and derivative (losses) gains, net | (22.9) | 5.5 | (31.7) | 5.5 |
Other expense | 0 | (0.2) | 0 | (0.3) |
Net (loss) income before income taxes | (39.2) | 10.6 | 18.1 | 89.9 |
Income tax benefit | 1.9 | 2 | 4.3 | 3.6 |
Net income (loss) | $ (37.3) | $ 12.6 | $ 22.4 | $ 93.5 |
Weighted average common shares outstanding - basic (in shares) | 118.7 | 113.1 | 116.3 | 111.5 |
Weighted average common shares outstanding - diluted (in shares) | 118.7 | 113.5 | 116.7 | 111.9 |
(Loss) income per share - basic (in dollars per share) | $ (0.32) | $ 0.11 | $ 0.19 | $ 0.83 |
(Loss) income per share - diluted (in dollars per share) | $ (0.32) | $ 0.11 | $ 0.19 | $ 0.83 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ (37.3) | $ 12.6 | $ 22.4 | $ 93.5 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 36.8 | (21.5) | 26.9 | (23.3) |
Net (loss) gain on cash flow hedging instruments | (20.9) | 15.5 | (31.5) | 14.6 |
Comprehensive (loss) income | $ (21.4) | $ 6.6 | $ 17.8 | $ 84.8 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance (in shares) at Dec. 31, 2018 | 108.3 | ||||||
Beginning Balance at Dec. 31, 2018 | $ 2,226 | $ 9.5 | $ 1.1 | $ 2,837.4 | $ (600.2) | $ 9.5 | $ (12.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 89.4 | 89.4 | |||||
Issuance of common stock, net (in shares) | 2 | ||||||
Issuance of common stock, net | 105 | 105 | |||||
Stock-based compensation expense | 4.5 | 4.5 | |||||
Tax payment upon exercise of equity awards | (8.7) | (8.7) | |||||
Foreign currency translation adjustment | 0.6 | 0.6 | |||||
Net gain (loss) on cash flow hedging instruments | 2.7 | 2.7 | |||||
Dividends declared | (50.9) | (50.9) | |||||
Ending Balance (in shares) at Mar. 31, 2019 | 110.3 | ||||||
Ending Balance at Mar. 31, 2019 | $ 2,378.1 | $ 1.1 | 2,938.2 | (552.2) | (9) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | ||||||
Beginning Balance (in shares) at Dec. 31, 2018 | 108.3 | ||||||
Beginning Balance at Dec. 31, 2018 | $ 2,226 | $ 9.5 | $ 1.1 | 2,837.4 | (600.2) | $ 9.5 | (12.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 93.5 | ||||||
Foreign currency translation adjustment | (23.3) | ||||||
Net gain (loss) on cash flow hedging instruments | 14.6 | ||||||
Ending Balance (in shares) at Sep. 30, 2019 | 113.2 | ||||||
Ending Balance at Sep. 30, 2019 | 2,416.9 | $ 1.1 | 3,094.2 | (657.4) | (21) | ||
Beginning Balance (in shares) at Mar. 31, 2019 | 110.3 | ||||||
Beginning Balance at Mar. 31, 2019 | 2,378.1 | $ 1.1 | 2,938.2 | (552.2) | (9) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (8.5) | (8.5) | |||||
Issuance of common stock, net (in shares) | 2.9 | ||||||
Issuance of common stock, net | 147.6 | 147.6 | |||||
Other | 0.1 | 0.1 | |||||
Stock-based compensation expense | 3.7 | 3.7 | |||||
Tax payment upon exercise of equity awards | (0.1) | (0.1) | |||||
Foreign currency translation adjustment | (2.4) | (2.4) | |||||
Net gain (loss) on cash flow hedging instruments | (3.6) | (3.6) | |||||
Dividends declared | (52.3) | (52.3) | |||||
Ending Balance (in shares) at Jun. 30, 2019 | 113.2 | ||||||
Ending Balance at Jun. 30, 2019 | 2,462.6 | $ 1.1 | 3,089.5 | (613) | (15) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 12.6 | 12.6 | |||||
Issuance of common stock, net (in shares) | 0 | ||||||
Issuance of common stock, net | 0.7 | 0.7 | |||||
Stock-based compensation expense | 4.2 | 4.2 | |||||
Tax payment upon exercise of equity awards | (0.2) | (0.2) | |||||
Foreign currency translation adjustment | (21.5) | (21.5) | |||||
Net gain (loss) on cash flow hedging instruments | 15.5 | 15.5 | |||||
Dividends declared | (57) | (57) | |||||
Ending Balance (in shares) at Sep. 30, 2019 | 113.2 | ||||||
Ending Balance at Sep. 30, 2019 | 2,416.9 | $ 1.1 | 3,094.2 | (657.4) | (21) | ||
Beginning Balance (in shares) at Dec. 31, 2019 | 114.8 | ||||||
Beginning Balance at Dec. 31, 2019 | 2,434.6 | $ 1.1 | 3,202 | (767.3) | (1.2) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 14.7 | 14.7 | |||||
Issuance of common stock, net (in shares) | 0.2 | ||||||
Issuance of common stock, net | 0.6 | $ 0.1 | 0.5 | ||||
Stock-based compensation expense (in shares) | 0 | ||||||
Stock-based compensation expense | 3.7 | 3.7 | |||||
Tax payment upon exercise of equity awards (in shares) | 0 | ||||||
Tax payment upon exercise of equity awards | (6.3) | (6.3) | |||||
Foreign currency translation adjustment | (24) | (24) | |||||
Net gain (loss) on cash flow hedging instruments | (1.1) | (1.1) | |||||
Dividends declared | (58.4) | (58.4) | |||||
Ending Balance (in shares) at Mar. 31, 2020 | 115 | ||||||
Ending Balance at Mar. 31, 2020 | 2,363.8 | $ 1.2 | 3,199.9 | (811) | (26.3) | ||
Beginning Balance (in shares) at Dec. 31, 2019 | 114.8 | ||||||
Beginning Balance at Dec. 31, 2019 | 2,434.6 | $ 1.1 | 3,202 | (767.3) | (1.2) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 22.4 | ||||||
Foreign currency translation adjustment | 26.9 | ||||||
Net gain (loss) on cash flow hedging instruments | (31.5) | ||||||
Ending Balance (in shares) at Sep. 30, 2020 | 120.4 | ||||||
Ending Balance at Sep. 30, 2020 | 2,604.4 | $ 1.2 | 3,532.9 | (923.9) | (5.8) | ||
Beginning Balance (in shares) at Mar. 31, 2020 | 115 | ||||||
Beginning Balance at Mar. 31, 2020 | 2,363.8 | $ 1.2 | 3,199.9 | (811) | (26.3) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 45 | 45 | |||||
Issuance of common stock, net (in shares) | 1.9 | ||||||
Issuance of common stock, net | 102.8 | $ 0 | 102.8 | ||||
Stock-based compensation expense | 3.3 | 3.3 | |||||
Tax payment upon exercise of equity awards (in shares) | 0 | ||||||
Tax payment upon exercise of equity awards | (0.1) | (0.1) | |||||
Foreign currency translation adjustment | 14.1 | 14.1 | |||||
Net gain (loss) on cash flow hedging instruments | (9.5) | (9.5) | |||||
Dividends declared | (58.7) | (58.7) | |||||
Ending Balance (in shares) at Jun. 30, 2020 | 116.9 | ||||||
Ending Balance at Jun. 30, 2020 | 2,460.7 | $ 1.2 | 3,305.9 | (824.7) | (21.7) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (37.3) | (37.3) | |||||
Issuance of common stock, net (in shares) | 3.5 | ||||||
Issuance of common stock, net | 222.5 | $ 0 | 222.5 | ||||
Stock-based compensation expense | 6.7 | 6.7 | |||||
Tax payment upon exercise of equity awards (in shares) | 0 | ||||||
Tax payment upon exercise of equity awards | (2.2) | (2.2) | |||||
Foreign currency translation adjustment | 36.8 | 36.8 | |||||
Net gain (loss) on cash flow hedging instruments | (20.9) | (20.9) | |||||
Dividends declared | (61.9) | (61.9) | |||||
Ending Balance (in shares) at Sep. 30, 2020 | 120.4 | ||||||
Ending Balance at Sep. 30, 2020 | $ 2,604.4 | $ 1.2 | $ 3,532.9 | $ (923.9) | $ (5.8) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (Unaudited) (Parenthetical) - $ / shares | Jul. 29, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 |
Statement of Stockholders' Equity [Abstract] | |||||||
Dividends declared per share (in dollars per share) | $ 0.51 | $ 0.51 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.46 | $ 0.46 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 22.4 | $ 93.5 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 330.9 | 309.6 |
Provision for bad debt expense | 0.3 | (0.2) |
Gain on marketable equity investment | (69.8) | (105.1) |
Foreign currency and derivative losses (gains), net | 31.7 | (5.5) |
Proceeds from swap terminations | 2.9 | 0 |
(Gain) loss on asset disposals | (0.1) | 0.2 |
Impairment losses | 11.2 | 0.7 |
Loss on early extinguishment of debt | 6.5 | 0 |
Interest expense amortization, net | 5.2 | 3.5 |
Stock-based compensation expense | 13.7 | 12.4 |
Deferred income tax benefit | (7.1) | (6.4) |
Operating lease cost | 15 | 14.6 |
Other income | 0.6 | 0 |
Change in operating assets and liabilities: | ||
Rent and other receivables, net and other assets | (29.1) | (51.5) |
Accounts payable and accrued expenses | 22 | 11.8 |
Deferred revenue and prepaid rents | 2.3 | 16.1 |
Operating lease liabilities | (16.7) | (16.7) |
Net cash provided by operating activities | 341.9 | 277 |
Cash flows from investing activities: | ||
Investments in real estate | (692.2) | (727.3) |
Proceeds from sale of equity investments | 31.8 | 199.8 |
Equity investments | (6.5) | (0.3) |
Proceeds from the sale of real estate assets | 0.3 | 0.9 |
Net cash used in investing activities | (666.6) | (526.9) |
Cash flows from financing activities: | ||
Issuance of common stock, net | 325.9 | 253.3 |
Dividends paid | (174.7) | (153.5) |
Payment of deferred financing costs | (15.1) | 0 |
Proceeds from revolving credit facility | 595.5 | 534.3 |
Repayments of revolving credit facility | (966.7) | (183.2) |
Proceeds from Euro bond | 561.2 | 0 |
Proceeds from unsecured term loan | 1,100 | 0 |
Repayments of unsecured term loan | (1,400) | (200) |
Proceeds from issuance of senior notes | 395.2 | 0 |
Payments on finance lease liabilities | (2) | (2.1) |
Tax payment upon exercise of equity awards | (8.6) | (9) |
Net cash provided by financing activities | 410.7 | 239.8 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (5.8) | (1.3) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 80.2 | (11.4) |
Cash, cash equivalents and restricted cash at beginning of period | 77.7 | 64.4 |
Cash, cash equivalents and restricted cash at end of period | 157.9 | 53 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, including amounts capitalized of $17.0 million and $26.2 million in 2020 and 2019, respectively | 36.3 | 109 |
Cash paid for income taxes | 3.2 | 3 |
Non-cash investing and financing activities: | ||
Construction costs payable | 168.2 | 131.2 |
Dividends payable | $ 63.1 | $ 57.7 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Cash Flows [Abstract] | ||
Cash paid for interest, capitalized amount | $ 17 | $ 26.2 |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of BusinessCyrusOne Inc., together with CyrusOne GP (the "General Partner"), a wholly-owned subsidiary of CyrusOne Inc., through which CyrusOne Inc. wholly owns CyrusOne LP (the "Operating Partnership") and the subsidiaries of the Operating Partnership (collectively, "CyrusOne", "we", "us", "our", and the "Company") is an owner, operator and developer of enterprise-class, carrier-neutral, multi-tenant and single-tenant data center properties. As of September 30, 2020, all of the issued and outstanding Operating Partnership units of CyrusOne LP are owned, directly or indirectly, by the Company. Our customers operate in a number of industries, including information technology, financial services, energy, oil and gas, mining, medical, research and consulting services, and consumer goods and services. We currently operate 53 data centers, including two recovery centers, located in the United States, United Kingdom, Germany and Singapore.On January 24, 2013, the Company completed its initial public offering (the "IPO") of common stock and its common stock currently trades on the NASDAQ Exchange under the ticker symbol "CONE". |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Risks and Uncertainties The novel strain of the coronavirus (COVID-19) identified in China in late 2019 has globally spread throughout Asia, Europe, the Middle East and the Americas and has resulted in authorities implementing numerous measures to attempt to contain the virus. This includes travel bans, shelter in place regulations and other restrictions and shutdowns. We continue to monitor the global outbreak and the potential risks to us posed by the pandemic. Our data centers have remained fully operational and to date we have experienced minimal disruptions in our business, including construction projects, however, we have modified our business practices by temporarily closing our corporate headquarters and regional locations, transitioned non-essential employees to working remotely from their homes, implemented restrictions on the physical participation in meetings and significantly limited business travel. The duration and extent of the impact from the COVID-19 pandemic depends on future developments that cannot be accurately predicted at this time. The effect of the pandemic and measures implemented by authorities could disrupt our supply chain, which currently remains fully functional, including the provision of services to us by our vendors and could result in restrictions on construction activities. There continues to be considerable uncertainty about the impact of these measures and restrictions on our Company and customers and the effects of these measures and how long they will remain in effect could adversely impact our business, financial condition, results of operations and liquidity. Interim Unaudited Financial Information The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019, which was filed with the Securities and Exchange Commission ("SEC") on February 20, 2020. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been omitted from this report on Form 10-Q pursuant to the rules and regulations of the SEC. Results for the interim periods in this report are not necessarily indicative of future financial results and have not been audited by our independent registered public accounting firm. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments necessary to present fairly our condensed consolidated financial statements as of September 30, 2020 and December 31, 2019, and for the three and nine months ended September 30, 2020 and 2019. These adjustments are of a normal recurring nature and consistent with the adjustments recorded to prepare the annual audited consolidated financial statements as of December 31, 2019. All amounts reflected are in millions except share and per share data. Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company, as well as all wholly-owned subsidiaries and any consolidated variable interest entities. All intercompany balances and transactions have been eliminated in consolidation. Investment in Real Estate Acquisition of Properties Investment in real estate consist of land, buildings, improvements and integral equipment utilized in our data center operations. We expect most acquisitions to be an acquisition of assets rather than a business combination as our typical acquisitions consist of properties whereby substantially all the fair value of gross assets acquired is concentrated in a single asset set (land, building and in-place leases), which are treated as asset acquisitions. See Business Combinations and Asset Acquisitions herein. Business Combinations and Asset Acquisitions We evaluate whether an acquisition is a business combination or an asset acquisition by determining whether the set of assets is a business. Asset Acquisitions When substantially all of the fair value of gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, the transaction is accounted for as an asset acquisition. Asset acquisitions are recorded at the cumulative acquisition costs and allocated to the assets acquired and liabilities assumed on a relative fair value basis. The Company allocates the purchase price of real estate to identifiable tangible assets such as land, building, land improvements and tenant improvements acquired based on their fair value. In estimating the fair value of each component, management considers appraisals, replacement cost, its own analysis of recently acquired and existing comparable properties, market rental data and other related information. Transaction costs associated with asset acquisitions are capitalized. Business Combinations When substantially all of the fair value is not concentrated in a group of similar identifiable assets, the set of assets will generally be considered a business and the Company applies the purchase method for business combinations, where all tangible and identifiable intangible assets acquired and all liabilities assumed are recorded at fair value. Any excess purchase price is recorded as goodwill. Transaction costs associated with business combinations are expensed as incurred. The following discussion applies to our initial determination of fair value and the resulting subsequent accounting which is generally applicable to both asset acquisitions and business combinations. The fair value of any tangible real estate assets acquired is determined by valuing the building as if it were vacant, and the fair value is then allocated to land, buildings, equipment and improvements based on available information including replacement cost, appraisal or using net operating income capitalization rates, discounted cash flow analysis or similar fair value models. We determine in-place lease values based on our evaluation of the specific characteristics of each tenant’s lease agreement and by applying a fair value model. The estimates of fair value of in-place leases include an estimate of carrying costs during the expected lease up periods considering current market conditions. In estimating fair value of in-place leases, we consider items such as real estate taxes, insurance, leasing commissions, tenant improvements and other operating expenses to execute similar leases as well as projected rental revenue and carrying costs during the expected lease up period. We amortize the value of in-place leases acquired to expense over the approximate weighted average remaining term of the leases, adjusted for projected tenant turnover, on a composite basis. We determine the value of above-market and below-market in-place leases for acquired properties based on the present value (using an interest rate that reflects the risks associated with the leases acquired) of the difference between (1) the contractual amounts to be paid pursuant to the in-place leases and (2) estimates of current market lease rates for the corresponding in-place leases, measured over a period equal to (i) the remaining non-cancellable lease term for above-market leases, or (ii) the remaining non-cancellable lease term plus any renewal options that we consider are reasonably certain that a lessee will execute such renewal option when a lease commences. We record the fair value of above-market and below-market leases as intangible assets or liabilities, and amortize them as an adjustment to revenue over the lease term. We determine the fair value of assumed debt by calculating the net present value of the scheduled debt service payments using current market-based terms for interest rates for debt with similar terms that management believes we could obtain on similar structures and maturities. Any difference between the fair value and stated value of the assumed debt is recorded as a discount or premium and amortized over the remaining term of the loan. In a business combination, we retain the previous lease classification unless there is a lease modification and that modification is not accounted for as a separate new lease. We elected to apply the short-term lease measurement and recognition exemption available under the new accounting standard for leases (discussed below in Note 3. "Recently Adopted Accounting Standards") to leases that have a remaining lease term of 12 months or less at the acquisition date, and accordingly, do not recognize an intangible asset if the terms of an operating lease are favorable relative to market terms, or a liability if the terms are unfavorable relative to market terms. Leasehold improvements are amortized over the shorter of the useful life of the assets and the remaining lease term at the date of acquisition. Capitalization of Costs We capitalize costs directly related to the development, pre-development or improvement of our investment in real estate, referred to as capital projects and other activities included within this paragraph. Costs associated with our capital projects are capitalized as incurred. If the project is abandoned, these costs are expensed during the period in which the project is abandoned. Costs considered for capitalization include, but are not limited to, construction costs, interest, real estate taxes, insurance and utilities, if appropriate. We capitalize indirect costs such as personnel, office and administrative expenses that are directly related to our development projects based on an estimate of the time spent on the construction and development activities. These costs are capitalized only during the period in which activities necessary to ready an asset for its intended use are in progress and such costs are incremental and identifiable to a specific activity to get the asset ready for its intended use. We determine when the capitalization period begins and ends through communication with project and other managers responsible for the tracking and oversight of individual projects. In the event that the activities to ready the asset for its intended use are suspended, the capitalization period will cease until such activities are resumed. In addition, we capitalize incremental initial direct costs incurred for successful origination of new leases which include internal and external leasing commissions. Interest expense is capitalized based on actual qualifying capital expenditures from the period when development commences until the asset is ready for its intended use, at the weighted average borrowing rate during the period. These costs are included in investment in real estate and depreciated over the estimated useful life of the related assets. Costs incurred for maintaining and repairing our properties, which do not extend their useful lives, are expensed as incurred. Impairment Losses When events or circumstances indicate that the carrying amount of a real estate investment may not be recoverable, we review the carrying value of the asset. When such impairment indicators exist, we review an estimate of the undiscounted future cash flows expected to result from the use of the real estate investment and proceeds from its eventual disposition and compare such amount to the carrying amount of the real estate investment. If our undiscounted cash flows indicate that we are unable to recover the carrying value of the real estate investment, an impairment loss is recognized. An impairment loss is measured as the amount by which the real estate investment's carrying value exceeds its estimated fair value. For the three and nine months ended September 30, 2020, we recognized an impairment loss of $8.8 million and $11.2 million, respectively, which includes an $8.8 million impairment loss in both periods based on our estimate of the decrease in the fair value of the equipment held for use in inventory at our U.S. data centers and a $2.4 million impairment loss in the nine months ended September 30, 2020 based on the estimated fair value for our investment in land held in Atlanta for future development as the Company entered into a non-binding contract to sell this land to a third-party. We recorded an impairment loss of $0.7 million for the three and nine months ended September 30, 2019, respectively, on our South Bend - Monroe facility, which was being actively marketed for sale. These fair values were based on unobservable inputs and the determination of fair value of real estate assets to be held for use is derived using the discounted cash flow method and involves a number of management assumptions relating to future economic events that could materially affect the determination of the ultimate fair value. Such assumptions are Level 3 inputs and include, but are not limited to, projected vacancy rates, rental rates, property operating expenses and required capital expenditures. These factors require management's judgment of factors such as market knowledge, historical experience, lease terms, tenant financial strength, economy, demographics, environment, property location, age, physical condition and expected return requirements, among other things. The aforementioned factors are taken as a whole by management in the determination of fair value. See Fair Value Measurements below for further information on fair value. Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents include all non-restricted cash held in financial institutions and other non-restricted highly liquid short-term investments with original maturities of three months or less. Restricted cash includes cash equivalents restricted by contract or regulation, including letters of credit. Equity Investments We hold investments in various joint ventures where the Company evaluates its ability to influence the operating or financial decisions of the investee in applying the appropriate method of accounting for such investments. Influence tends to be more effective as the investor's percent of ownership in the voting rights of the investee increases. Our equity investments represent less than 20% of the voting rights of the investees and we do not exercise influence over the investee's operating and financial decisions. Accordingly, we do not account for our equity investments using the equity method of accounting. For further information about our equity investments, see Note 7, Equity Investments. Our investment in GDS Holdings Limited ("GDS") is classified as "available for sale" and is carried at fair value. Changes in the fair value are reported as a component of net income in Gain on marketable equity investments. Revenue Recognition Our revenue consists of lease revenue and revenue from contracts with customers. Lease Revenue: Our leasing revenue primarily consists of colocation rent, metered power reimbursements and interconnection revenue and is accounted for under ASC 842, Leases. We generally are not entitled to reimbursements for rental expenses including real estate taxes, insurance or other common area operating expenses. a. Colocation Rent Revenue Colocation rent revenues, including interconnection revenue, are fixed minimum lease payments generally billed monthly in advance based on the contracted power or leased space. Some contracts may provide initial free rent periods and rents that escalate over the term of the contract. If rents escalate without the lessee gaining access to or control over additional leased power or space at the beginning of the lease term, the rental payments are recognized as revenue on a straight-line basis over the term of the lease. If rents escalate because the lessee gains access to and control over additional power and or leased space, revenue is recognized in proportion to the additional power or space in the periods that the lessee has control over the use of the additional power or space. The excess of revenue recognized over amounts contractually due is recognized as a straight-line receivable, which is included in rent and other receivables in our Condensed Consolidated Balance Sheet. Some of our leases are structured on a gross basis in which the customer pays a fixed amount for colocation space and power. The revenue for these types of leases is recorded in colocation rent revenue. b. Metered Power Reimbursements Revenue Some of our leases provide that the customer is separately billed for power based upon actual or estimated metered usage at rates then in effect. Metered power reimbursement revenue is variable lease payments generally billed one month in arrears, and an estimate of this revenue is accrued in the month that the associated power is provided and recorded in metered power reimbursements revenue. Revenue from Contracts with Customers Revenue from our managed services, equipment sales, installations and other services are recognized under ASC 606, Revenue from Contracts with Customers. Equipment sold by us generally consists of servers, switches, networking equipment, cable infrastructure and cabinets. Revenue is recognized at a point-in-time when control of the equipment transfers to the customer from the Company, which generally occurs upon delivery to the customer. Managed services include providing of a full-service managed data center, monitoring customer computer equipment, managing backups and storage, utilization reporting and other related ancillary information technology services. Management service contracts generally range from one Installation services include mounting, wiring, and testing of customer owned equipment. The installation period is typically short term in duration, and accordingly, revenue from the installation of customer equipment is recognized at a point-in-time once the installation is complete and the performance obligation is satisfied. Other services generally include installation of customer equipment, performing customer system re-boots, server cabinet and cage management, power monitoring, shipping and receiving, resolving technical issues, and other services requested by the customer. Other service revenue is measured based on the consideration specified in the contract and recognized over time as we satisfy the performance obligation. Contract assets were $0.2 million as of September 30, 2020 and were not material as of December 31, 2019. Contract liabilities w ere not material as of both September 30, 2020 and December 31, 2019. Rent and Other Receivables Receivables consist principally of trade receivables from customers and straight-line rent receivables with expected credit losses recorded as an allowance for doubtful accounts. Foreign Currency Translation and Transactions The financial position of foreign subsidiaries is translated at the exchange rates in effect at the end of the period, while revenues and expenses are translated at average exchange rates during the period. Gains or losses from translation of foreign operations where the local currency is the functional currency are included as components of Other comprehensive income (loss). Gains or losses from foreign currency transactions are included in determining net income. Stock-Based Compensation We have a stock-based incentive award plan for our employees and directors. Stock-based compensation expense associated with these awards is recognized in General and administrative expenses, Property operating expenses, and Sales and marketing expenses in our Condensed Consolidated Statements of Operations. We measure stock-based compensation at the estimated fair value on the grant date and recognize the amortization of stock-based compensation expense over the requisite service period. Fair value is determined based on assumptions related to stock volatility, risk-free rate of return, and estimates of market and company performance. Fair Value Measurements Fair value measurements are utilized in accounting for business combinations, asset acquisitions, testing of goodwill and other long-lived assets for impairment, recording unrealized gain on available-for-sale securities, derivatives and related disclosures. Fair value of financial and non-financial assets and liabilities is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The three-tier hierarchy that prioritizes certain inputs used in the methodologies of measuring fair value for asset and liabilities, is as follows: Level 1—Observable inputs for identical instruments such as quoted market prices; Level 2—Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs); and Level 3—Unobservable inputs that reflect our determination of assumptions that market participants would use in pricing the asset or liability. These inputs are developed based on the best information available, including our own data. Derivative Instruments Derivative instruments are measured at fair value and recorded in Other assets and Other liabilities, depending on our rights or obligations under the applicable derivative contract. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For a derivative designated and that qualified as a cash flow hedge, the effective portion of the change in fair value of the derivative is recognized in the Condensed Consolidated Statement of Comprehensive Income (Loss) until the hedged item is recognized in earnings. Any ineffective portion of a derivative's change in fair value is immediately recognized in earnings. For interest rate derivatives, amounts recognized in earnings are reflected in Interest expense, net. For a derivative designated and that qualified as a net investment hedge, the effective portion of the change in the fair value and/or the net settlement of the derivative are reported in the Condensed Consolidated Statement of Comprehensive Income (Loss). Any ineffective portion of the change in fair value of the derivative is recognized directly in earnings. Amounts are reclassified out of other comprehensive income (loss) into earnings when the hedged investment is either sold or substantially liquidated. |
Recently Adopted Accounting Sta
Recently Adopted Accounting Standards | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards Lease Modification Q&A Due to the business disruptions and challenges severely affecting the global economy caused by the COVID-19 pandemic, lessors may provide rent deferrals and other lease concessions to lessees. While the lease modification guidance in ASC 842, Leases, the new accounting standard for leases addresses changes to lease terms resulting from negotiations between the lessee and the lessor, this guidance did not contemplate concessions being so rapidly executed to address the impact from the COVID-19 pandemic on the lessor's business. In April 2020, the Financial Accounting Standards Board ("FASB") issued a question and answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of the COVID-19 pandemic. Under the new accounting standard for leases, the Company must determine, on a lease by lease basis, if a lease concession resulted in a lease modification. The Lease Modification Q&A allows the Company, if certain criteria have been met, to bypass the lease by lease analysis, and instead elect to either apply the lease modification accounting framework or not, with such election applied consistently to leases with similar characteristics and circumstances. The adoption of this guidance has not had a material impact on our financial statements. Guarantor Financial Information In March 2020, the SEC amended Rule 3-10 of Regulation S-X to reduce and simplify financial disclosure requirements for issuers and guarantors of registered debt offerings. The guidance is effective January 4, 2021, with early adoption permitted. This new guidance replaces the previous requirement to provide condensed consolidating financial information in the registrant’s financial statements with a requirement to provide alternative financial disclosures in Item 2 "Management's Discussion and Analysis of Financial Condition and Results of Operations" or its financial statements. We adopted these amendments as of April 1, 2020, and the alternative disclosures are presented in Item 2 "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the information previously included in the Notes to Condensed Consolidated Financial Statements has been removed. Intangibles-Goodwill and Other Internal-Use Software We adopted ASU 2018-15, Intangibles Goodwill and Other Internal Use Software on a prospective basis effective January 1, 2020. The adoption did not have a significant impact on the Company. Fair Value Measurement On January 1, 2020, we adopted ASU 2018-13, Fair Value Measurement, which changes the fair value measurement disclosure requirements of ASC 820, Fair Value Measurement. The amendments are part of the FASB’s disclosure framework project to improve the effectiveness of disclosures important to financial statement users including information about assets and liabilities measured at fair value in our Condensed Consolidated Balance Sheets. The adoption did not have a significant impact on the Company. Financial Instruments - Credit Losses On January 1, 2020, we adopted ASU 2016-13, Financial Instruments-Credit Losses (CECL), which requires certain financial assets to be presented at the net amount expected to be collected. CECL and its related amendments apply to our customer contract trade receivables, notes receivable and net investments in leases. Our Rent and other receivables are primarily comprised of rent receivables, which are not within the scope of this sub-topic. The adoption did not have a significant impact on the Company because of our limited exposure to financial instruments subject to this standard. New Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies various aspects related to the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes and clarifies certain aspects of the guidance to promote consistency among reporting entities. The guidance is |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Lease Revenue Lease revenue primarily consists of colocation rent and metered power reimbursements from the lease of our data centers. Colocation leases may include all or portions of a data center, where customers may also lease office space to support their colocation operations. Revenue is primarily based on power usage as well as square footage. Customer lease arrangements customarily contain provisions that allow for renewal or continuation on a month-to-month arrangement, and certain leases contain early termination rights. We do not include any of these extension or termination options in a customer’s lease term for lease classification purposes or for recognizing lease revenue unless we are reasonably certain the customer will exercise these extension or termination options at lease commencement. At lease commencement, early termination is generally not deemed probable due to the significant economic penalty incurred by the lessee to exercise its early termination right and to relocate their equipment installed in our facilities. Generally, our customer lease arrangements do not provide any option to purchase and are classified as operating leases. We have substantial revenue primarily related to lease revenue from one customer that represents approximately 19% and 22% of our total revenue for the nine months ended September 30, 2020 and 2019, respectively. At September 30, 2020, the future minimum lease payments to be received under non-cancellable operating leases, excluding month-to-month arrangements and metered power reimbursements are shown below (in millions): As of September 30, 2020 Minimum Lease Payments 2020 $ 198.9 2021 721.9 2022 614.5 2023 493.7 2024 377.7 2025 307.8 Thereafter 837.3 Total $ 3,551.8 At September 30, 2019, the future minimum lease payments to be received under non-cancellable operating leases, excluding month-to-month arrangements and metered power reimbursements are shown below (in millions): As of September 30, 2019 Minimum Lease Payments 2019 $ 188.2 2020 708.0 2021 603.2 2022 508.8 2023 413.5 2024 319.3 Thereafter 957.4 Total $ 3,698.4 Revenue from Contracts with Customers Revenue from equipment sales and the installation of customer equipment is recognized at a point-in-time. Title to such assets are transferred to the customer, and the benefits of the installation service are typically consumed at the completion of the service. Disaggregation of Revenue For the three and nine months ended September 30, 2020 and 2019, lease revenue disaggregated by primary revenue stream is as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, Lease revenue 2020 2019 2020 2019 Colocation (Minimum lease payments) $ 212.5 $ 202.4 $ 624.0 $ 588.2 Metered power reimbursements (Variable lease payments) 44.6 41.1 116.5 101.3 Total lease revenue $ 257.1 $ 243.5 $ 740.5 $ 689.5 For the three and nine months ended September 30, 2020 and 2019, revenue from contracts with customers disaggregated by primary revenue stream is as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, Revenue from contracts with customers 2020 2019 2020 2019 Equipment sales and services $ 0.6 $ 2.4 $ 10.0 $ 23.4 Other revenue 5.1 5.0 14.6 14.5 Total revenue from contracts with customers $ 5.7 $ 7.4 $ 24.6 $ 37.9 Other revenue related to contracts with customers in the table above includes managed services and other services revenue of $4.0 million and $11.9 million for the three and nine months ended September 30, 2020, respectively, and $4.1 million and $11.8 million for the three and nine months ended September 30, 2019, respectively. Total revenues from contracts with customers generated from operations outside of the United States were $0.2 million and $4.4 million for the three and nine months ended September 30, 2020, respectively, and were insignificant for the three and nine months ended September 30, 2019, respectively. Accounts receivable associated with revenue from contracts with customers were $3.0 million and $6.4 million as of September 30, 2020 and December 31, 2019, respectively. |
Leases - As a Lessee
Leases - As a Lessee | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases - As a Lessee | Leases - As a Lessee Right-of-use ("ROU") assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. Variable lease payments consisting of non-lease components and services are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation is incurred. The new accounting standard for leases defines initial direct costs as only the incremental costs of signing a lease. Initial direct costs related to leasing that are not incremental are expensed as general and administrative expense in our Condensed Consolidated Statements of Operations. As a result of electing the package of practical expedients, initial direct costs incurred prior to the effective date have not been reassessed. Our operating lease agreements primarily consist of leased real estate and are included within Operating lease ROU assets and Operating lease liabilities on the Condensed Consolidated Balance Sheets. Many of our lease agreements include options to extend the lease, which are not included in our minimum lease payments unless they are reasonably certain to be exercised at lease commencement. Rental expense related to operating leases is recognized on a straight-line basis over the lease term. We operate five data center facilities and have a data center under development subject to finance leases. The remaining terms of our data center finance leases range from one one The components of lease expense are as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Operating lease cost $ 5.1 $ 5.0 $ 15.0 $ 14.6 Finance lease cost: Amortization of assets 0.7 0.4 1.5 1.5 Interest on lease liabilities 0.4 0.4 1.1 1.3 Total net lease cost $ 6.2 $ 5.8 $ 17.6 $ 17.4 Supplemental balance sheet information related to leases is as follows (in millions, except lease term and discount rate): September 30, 2020 December 31, 2019 Operating leases: Operating lease right-of-use assets $ 206.9 $ 161.9 Operating lease liabilities $ 244.3 $ 195.8 Finance leases: Property and equipment, at cost $ 33.0 $ 34.9 Accumulated amortization (6.4) (5.0) Property and equipment, net $ 26.6 $ 29.9 Finance lease liabilities $ 29.2 $ 31.8 Weighted average remaining lease term (in years): Operating leases 14.4 15.8 Finance leases (a) 18.1 18.1 Weighted average discount rate: Operating leases 3.8 % 3.9 % Finance leases (a) 4.8 % 4.9 % (a) Excludes a 999-year ground lease in Dublin, The Republic of Ireland entered into during the third quarter of 2019. The Dublin finance lease was capitalized as land and included in Construction in progress, including land under development on the consolidated balance sheets. Supplemental cash flow and other information related to leases is as follows (in millions): Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 16.7 $ 16.7 Operating cash flows from finance leases 1.1 1.3 Financing cash flows from finance leases 2.0 2.1 Non-cash right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 56.9 $ 101.4 Finance leases — 0.8 Maturities of lease liabilities were as follows as of September 30, 2020 (in millions): Operating Leases Finance Leases 2020 $ 6.3 $ 1.8 2021 25.7 4.0 2022 27.2 2.9 2023 23.4 1.8 2024 19.0 1.5 2025 17.3 1.6 Thereafter 213.6 28.8 Total lease payments $ 332.5 $ 42.4 Less: Imputed interest (88.2) (13.2) Total lease obligations $ 244.3 $ 29.2 Maturities of lease liabilities were as follows as of December 31, 2019 (in millions): Operating Leases Finance Leases 2020 $ 22.4 $ 5.0 2021 21.0 4.1 2022 22.4 2.9 2023 18.5 1.9 2024 13.9 1.4 Thereafter 165.4 31.1 Total lease payments $ 263.6 $ 46.4 Less: Imputed interest (67.8) (14.6) Total lease obligations $ 195.8 $ 31.8 |
Leases - As a Lessee | Leases - As a Lessee Right-of-use ("ROU") assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. Variable lease payments consisting of non-lease components and services are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation is incurred. The new accounting standard for leases defines initial direct costs as only the incremental costs of signing a lease. Initial direct costs related to leasing that are not incremental are expensed as general and administrative expense in our Condensed Consolidated Statements of Operations. As a result of electing the package of practical expedients, initial direct costs incurred prior to the effective date have not been reassessed. Our operating lease agreements primarily consist of leased real estate and are included within Operating lease ROU assets and Operating lease liabilities on the Condensed Consolidated Balance Sheets. Many of our lease agreements include options to extend the lease, which are not included in our minimum lease payments unless they are reasonably certain to be exercised at lease commencement. Rental expense related to operating leases is recognized on a straight-line basis over the lease term. We operate five data center facilities and have a data center under development subject to finance leases. The remaining terms of our data center finance leases range from one one The components of lease expense are as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Operating lease cost $ 5.1 $ 5.0 $ 15.0 $ 14.6 Finance lease cost: Amortization of assets 0.7 0.4 1.5 1.5 Interest on lease liabilities 0.4 0.4 1.1 1.3 Total net lease cost $ 6.2 $ 5.8 $ 17.6 $ 17.4 Supplemental balance sheet information related to leases is as follows (in millions, except lease term and discount rate): September 30, 2020 December 31, 2019 Operating leases: Operating lease right-of-use assets $ 206.9 $ 161.9 Operating lease liabilities $ 244.3 $ 195.8 Finance leases: Property and equipment, at cost $ 33.0 $ 34.9 Accumulated amortization (6.4) (5.0) Property and equipment, net $ 26.6 $ 29.9 Finance lease liabilities $ 29.2 $ 31.8 Weighted average remaining lease term (in years): Operating leases 14.4 15.8 Finance leases (a) 18.1 18.1 Weighted average discount rate: Operating leases 3.8 % 3.9 % Finance leases (a) 4.8 % 4.9 % (a) Excludes a 999-year ground lease in Dublin, The Republic of Ireland entered into during the third quarter of 2019. The Dublin finance lease was capitalized as land and included in Construction in progress, including land under development on the consolidated balance sheets. Supplemental cash flow and other information related to leases is as follows (in millions): Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 16.7 $ 16.7 Operating cash flows from finance leases 1.1 1.3 Financing cash flows from finance leases 2.0 2.1 Non-cash right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 56.9 $ 101.4 Finance leases — 0.8 Maturities of lease liabilities were as follows as of September 30, 2020 (in millions): Operating Leases Finance Leases 2020 $ 6.3 $ 1.8 2021 25.7 4.0 2022 27.2 2.9 2023 23.4 1.8 2024 19.0 1.5 2025 17.3 1.6 Thereafter 213.6 28.8 Total lease payments $ 332.5 $ 42.4 Less: Imputed interest (88.2) (13.2) Total lease obligations $ 244.3 $ 29.2 Maturities of lease liabilities were as follows as of December 31, 2019 (in millions): Operating Leases Finance Leases 2020 $ 22.4 $ 5.0 2021 21.0 4.1 2022 22.4 2.9 2023 18.5 1.9 2024 13.9 1.4 Thereafter 165.4 31.1 Total lease payments $ 263.6 $ 46.4 Less: Imputed interest (67.8) (14.6) Total lease obligations $ 195.8 $ 31.8 |
Investment in Real Estate
Investment in Real Estate | 9 Months Ended |
Sep. 30, 2020 | |
Real Estate [Abstract] | |
Investment in Real Estate | Investment in Real Estate Land for future development During the nine months ended September 30, 2020, the Company purchased land for future development in Frankfurt, Germany and London, United Kingdom totaling 35 acres for $58.7 million. During the nine months ended September 30, 2019, the Company purchased land for future development in San Antonio, Texas; Santa Clara, California; and Dublin, Ireland totaling approximately 54 acres for $51.8 million . Real Estate Investments and Intangible Assets and Related Depreciation and Amortization As of September 30, 2020 and December 31, 2019, major components of our real estate investments and intangibles and related accumulated depreciation and amortization are as follows (in millions): As of: September 30, 2020 December 31, 2019 Cost Accumulated Depreciation and Amortization Net book value Cost Accumulated Depreciation and Amortization Net book value Investment in real estate Building and improvements $ 1,918.4 $ (613.6) $ 1,304.8 $ 1,761.4 $ (545.1) $ 1,216.3 Equipment 3,341.7 (1,049.8) 2,291.9 3,028.2 (834.1) 2,194.1 Intangible assets Customer relationships $ 247.1 $ (160.1) $ 87.0 $ 247.1 $ (151.1) $ 96.0 In-place leases 137.0 (66.0) 71.0 137.1 (46.7) 90.4 Other contractual 19.4 (11.0) 8.4 19.4 (9.7) 9.7 Total intangible assets $ 403.5 $ (237.1) $ 166.4 $ 403.6 $ (207.5) $ 196.1 Depreciation and amortization are calculated using the straight-line method over the useful lives of the assets. The typical life of owned assets are as follows: Buildings 30 years Building improvements 30 years Equipment 20 years Leased real estate and leasehold improvements are depreciated over the shorter of the asset's useful life or the remaining lease term. Depreciation expense was $99.7 million and $291.2 million for the three and nine months ended September 30, 2020, respectively, and $92.1 million and $269.9 million for the three and nine months ended September 30, 2019, respectively. Other contract intangible assets include tradenames, favorable leasehold interests and above market leases. Amortization expense related to intangibles was $13.4 million and $39.7 million for the three and nine months ended September 30, 2020, respectively, and $13.3 million and $39.7 million for the three and nine months ended September 30, 2019, respectively. |
Equity Investments
Equity Investments | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Equity Investments | Equity Investments The Company has the following equity investments where it has a noncontrolling interest in the investees (in millions). Equity Investments as of: Investees Equity Method September 30, 2020 December 31, 2019 GDS, Class A share equivalent Fair value $ 155.2 $ 118.7 ODATA investments Cost method 22.9 16.4 Equity investments $ 178.1 $ 135.1 The Company has an equity investment in GDS, a developer and operator of high-performance, large-scale data centers in China. As of September 30, 2020, the American Depositary Share ("ADS") Class A ordinary share equivalent was $81.83 per ADS based on its closing price. We account for our equity investment in GDS using the fair value method. For the nine months ended September 30, 2020 and 2019, we sold approximately 405,000 and 5.7 million GDS ADSs for a total sales price of approximately $33.3 million and $200.0 million, respectively. We continue to hold approximately 1.9 million GDS ADSs, with a total fair value of $155.2 million as of September 30, 2020. We recognized gains on GDS ADSs of $4.7 million and $69.8 million for the three and nine months ended September 30, 2020, respectively, and gains of $12.4 million and $105.1 million for the three and nine months ended September 30, 2019, respectively. The Company recognized Gains (losses) on marketable equity investment in GDS ADSs held and sold as follows: Three Months Ended September 30, Nine Months Ended September 30, IN MILLIONS 2020 2019 2020 2019 Net gain on marketable equity investments $ 4.7 $ 12.4 $ 69.8 $ 105.1 Less: Net gain recognized on marketable equity investments sold 0.6 — 12.4 66.9 Unrealized gain on marketable equity investments held $ 4.1 $ 12.4 $ 57.4 $ 38.2 |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets As of September 30, 2020 and December 31, 2019, the components of Other assets are as follows (in millions): September 30, 2020 December 31, 2019 Deferred leasing and other contract costs $ 58.7 $ 53.2 Prepaid expenses 20.6 22.1 Non-real estate assets, net 14.5 16.3 Derivative assets — 3.5 Other assets 19.0 18.8 Total $ 112.8 $ 113.9 Non-real estate assets, net primarily consists of administrative related software and computers and office equipment, which are depreciated or amortized over the shorter of the assets useful life or the lease term. Other assets primarily includes land deposits, fuel inventory, notes receivable, deferred tax assets, net of allowance and other deferred costs. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of September 30, 2020 and December 31, 2019, the components of Debt are as follows (unless otherwise noted, interest rate and maturity date information are as of September 30, 2020) (in millions): September 30, 2020 December 31, 2019 Interest Rate Maturity Date Amended Credit Agreement: Revolving Credit Facility: March 2024 (b) EUR Revolver $ 140.7 $ — Monthly LIBOR + 1.00% GBP Revolver (a) 109.4 — Monthly LIBOR + 1.00% 2023 Term Loan Facility (c) 100.0 — Monthly LIBOR + 1.20% March 2023 2025 Term Loan Facility 700.0 — Monthly LIBOR + 1.20% March 2025 $3.0 Billion Credit Facility: $1.7 Billion Revolving Credit Facility: March 2022 US Revolver — 555.0 Monthly LIBOR + 1.20% EUR Revolver — 33.6 Monthly EURIBOR + 1.20% GBP Revolver — 26.4 Monthly LIBOR + 1.20% 2023 Term Loan — 800.0 Monthly LIBOR + 1.35% March 2023 2025 Term Loan — 300.0 Monthly LIBOR + 1.65% March 2025 2024 Notes, including bond discount of $0.7 million 599.3 599.2 2.900 % November 2024 2029 Notes, including bond discount of $1.6 million 598.4 598.2 3.450 % November 2029 2027 Notes, including bond discount of $0.7 million (d) 585.5 — 1.450 % January 2027 2030 Notes, including bond discount of $4.8 million 395.2 — 2.150 % November 2030 Deferred financing costs (30.7) (25.8) — — Total $ 3,197.8 $ 2,886.6 (a) - Monthly USD LIBOR and GBP LIBOR as of September 30, 2020 was 0.15% and 0.05%, respectively. (b) - The Company has an option to exercise a one (c) - The Company has an option to exercise two 1-year extension options, subject to certain conditions. (d) - The 2027 Notes represent €495.3 million, including bond discount of €0.6 million of Euro bonds. Credit facilities On March 31, 2020, CyrusOne LP, a Maryland limited partnership and subsidiary of CyrusOne Inc., entered into an amendment to its credit agreement, dated as of March 29, 2018 (as so amended, the “Amended Credit Agreement”), among the Operating Partnership, as borrower, the lenders party thereto (the “Lenders”) and JPMorgan Chase Bank, N.A., as administrative agent for the Lenders. Proceeds from the Amended Credit Agreement were used, among other things, to refinance and replace the credit facilities under the $3.0 Billion Credit Facility (as defined below). The Amended Credit Agreement provides for (i) a $1.4 billion senior unsecured multi-currency revolving credit facility (the “Revolving Credit Facility”), (ii) senior unsecured term loans due 2023 in a dollar equivalent principal amount of $400.0 million (the “2023 Term Loan Facility”), and (iii) senior unsecured term loans due 2025 in a principal amount of $700.0 million (the “2025 Term Loan Facility”). The Amended Credit Agreement also includes an accordion feature pursuant to which the Operating Partnership is permitted to obtain additional revolving or term loan commitments so long as the aggregate principal amount of commitments and/or term loans under the Amended Credit Agreement does not exceed $4.0 billion. The Revolving Credit Facility provides for borrowings in U.S. Dollars, Euros, Pounds Sterling, Canadian Dollars, Australian Dollars, Japanese Yen, Hong Kong Dollars, Singapore Dollars and Swiss Francs (subject to a sublimit of $750.0 million on borrowings in currencies other than U.S. Dollars). The Revolving Credit Facility matures on March 29, 2024 with one 12-month extension option. The 2023 Term Loan Facility matures on March 29, 2023 with two 1-year extension options, and the 2025 Term Loan Facility matures on March 28, 2025. The interest rates for borrowings under the Amended Credit Agreement are, at the option of the borrower, based on a floating rate or base rate, plus a margin determined by reference to a pricing grid based on the lower of (i) the rate corresponding to the then applicable credit rating for the Operating Partnership’s senior unsecured debt or (ii) the rate corresponding to the then applicable ratio of the Company’s consolidated total indebtedness to its gross asset value. The Amended Credit Agreement includes certain restricted covenants, requirements to maintain certain financial ratios, including with respect to unencumbered assets, and events of default. On March 31, 2020, borrowings of $1.3 billion under the Amended Credit Agreement were used to repay the $3.0 Billion Credit Facility, which consisted of a $1.7 billion revolving credit facility ("$1.7 Billion Revolving Credit Facility"), which included a $750.0 million multicurrency borrowing sublimit, a 5-year term loan with commitments totaling $1.0 billion and a $300.0 million 7-year term loan (collectively, the "$3.0 Billion Credit Facility"). The aggregate outstanding principal balance under the Amended Credit Agreement as of March 31, 2020, was $1.3 billion, and the Company recognized a loss on early extinguishment of debt of $3.4 million in connection with the repayment of the $3.0 Billion Credit Facility. It is not known whether LIBOR will continue after 2021 in a legally workable form. There is a risk that an adverse outcome of the LIBOR transition after 2021 could increase our interest and other costs relative to our outstanding subordinated debt. We may not be able to refinance those instruments on terms that reduce those costs to the level we would have expected if LIBOR were to continue indefinitely, unchanged. Also, a transition from LIBOR could impact or change our hedge accounting practices. Prior to obtaining an investment grade rating in September 2019 and shifting to a ratings-based pricing grid under the $1.7 Billion Revolving Credit Facility, we paid commitment fees for the unused amount of borrowings on the $1.7 Billion Revolving Credit Facility and fees on any outstanding letters of credit equal to 0.25% per annum of the actual daily amount by which the aggregate revolving commitments exceeded the sum of outstanding revolving loans and letter of credit obligations. Following the shift to a ratings-based pricing grid, we pay a facility fee calculated based on the aggregate revolving commitments. The facility fee rate varies based on ratings-based pricing levels, and is currently equal to 0.25% per annum of the aggregate revolving commitments. The facility fee or commitment fee, as applicable, was $0.6 million and $2.4 million for the three and nine months ended September 30, 2020, respectively, and $0.5 million and $1.5 million for the three and nine months ended September 30, 2019, respectively. As of September 30, 2020, we had $100.0 million, $700.0 million and $250.1 million outstanding under the 2023 Term Loan Facility, the 2025 Term Loan Facility and the Revolving Credit Facility, respectively, and additional borrowing capacity under the Amended Credit Agreement was approximately $1.1 billion, net of $10.8 million of outstanding letters of credit. Senior notes Euro bonds On January 22, 2020, the Operating Partnership and CyrusOne Finance Corp., a single-purpose finance subsidiary, both wholly-owned subsidiaries of the Company (together, the "Issuers"), completed a public offering of €500.0 million aggregate principal amount of 1.450% senior notes due January 2027 (the “2027 Notes”). The Company received proceeds of €495.3 million, net of discount, underwriting costs and other deferred financing costs. The Company used the proceeds to repay floating rate Euro denominated obligations and fund continued development in Europe. The 2027 Notes are senior unsecured obligations of the Issuers guaranteed by CyrusOne Inc., which rank equally in right of payment with all existing and future unsecured senior indebtedness of the Issuers. The 2027 Notes are effectively subordinated in right of payment to any future secured indebtedness, if any, to the extent of the value of the assets securing such indebtedness. The 2027 Notes may be redeemed at our option prior to their scheduled maturity dates at the prices and premiums and on the terms set forth in the respective indentures governing the notes. US bonds On September 21, 2020, the Issuers completed a public offering of $400.0 million aggregate principal amount of 2.150% senior notes due November 2030 (the "2030 Notes"). The Company received proceeds of $392.6 million, net of discount, underwriting costs and other deferred financing costs. The Company used the proceeds to repay $300.0 million of the outstanding indebtedness under the Operating Partnership's 2023 Term Loan Facility, to repay the then outstanding balance of $20.0 million on the US Revolver balance under the Revolving Credit Facility and the remainder for general corporate purposes. In connection with the repayment of outstanding indebtedness of the senior unsecured term loans due March 2023, the Company recognized a loss on early extinguishment of debt of $3.1 million. On December 5, 2019, the Issuers completed a public offering of $600.0 million aggregate principal amount of 2.900% senior notes due November 2024 (the "2024 Notes") and $600.0 million aggregate principal amount of 3.450% senior notes due November 2029 (the “2029 Notes”). The Company received proceeds of $1,197.4 million, net of discounts, underwriting costs and other deferred financing costs. The Company used the proceeds to finance the repurchase of all of its 5.000% senior notes due 2024 (the “Old 2024 Notes”) and all of its 5.375% senior notes due 2027 (the “Old 2027 Notes” and together with the Old 2024 Notes, the "Existing Notes"), including the payment of consent payments, for the redemption and discharge of Existing Notes that remained outstanding after the completion of the tender offers and consent solicitations, for the payment of related premiums, fees, discounts and expenses and for general corporate purposes. In connection with the repurchase of the Existing Notes, the Company recognized a loss on early extinguishment of debt of $71.8 million. The 2024 Notes, 2029 Notes and 2030 Notes are senior unsecured obligations of the Issuers guaranteed by CyrusOne Inc., which rank equally in right of payment with all existing and future unsecured senior indebtedness of the Issuers. The 2024 Notes, 2029 Notes and 2030 Notes are effectively subordinated in right of payment to any future secured indebtedness of the Issuers, if any, to the extent of the value of the assets securing such indebtedness. The 2024 Notes, 2029 Notes and 2030 Notes may be redeemed at our option prior to their scheduled maturity dates at the prices and premiums and on the terms set forth in the respective indentures governing the notes. Financial debt covenants Our debt agreements contain customary provisions with respect to events of default, affirmative and negative covenants and borrowing conditions. The most restrictive covenants are generally included in the Amended Credit Agreement. The Amended Credit Agreement requires us to maintain certain financial covenants including the following, in each case on a consolidated basis, a minimum fixed charge ratio, maximum total and secured leverage ratios, maximum net operating income to debt service ratio and a maximum ratio of unsecured indebtedness to unencumbered asset value. In order to continue to have access to amounts available under the Amended Credit Agreement, the Company must remain in compliance with all of that agreement's covenants. As of September 30, 2020, we are in compliance with the financial covenants of our debt agreements. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments and Hedging Activities | Fair Value of Financial Instruments and Hedging Activities Fair value measurements are based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering assumptions in fair value measurements, a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity's own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy) has been established. Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets and liabilities that we have the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability that are typically based on an entity's own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement requires judgment and considers factors specific to the asset or liability. The fair value of Cash and cash equivalents, Rent and other receivables, Construction costs payable, Dividends payable and Accounts payable and accrued expenses approximate their carrying value because of the short-term nature of these financial instruments. The carrying value, exclusive of deferred financing costs, for the revolving credit facilities and the floating rate term loans approximate estimated fair value as of September 30, 2020 and December 31, 2019, due to the floating rate nature of the interest rates and the stability of our credit ratings. We determine the fair value of our derivative financial instruments using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves, foreign exchange rates and implied volatilities. We determine the fair values of our interest rate swaps using the market standard methodology of netting the discounted future fixed cash receipts or payments and the discounted expected variable cash payments. We base the variable cash payments on an expectation of future interest rates, or forward curves, derived from observable market interest rate curves. We base the fair values of our net investment hedges on the change in the spot rate at the end of the period as compared with the strike price at inception. We incorporate credit valuation adjustments to appropriately reflect nonperformance risk for us and the respective counterparty in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we consider the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. We have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy. Although the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by us and our counterparties, we assess the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. The carrying value and fair value of other financial instruments are as follows (in millions): September 30, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value Debt: Variable Rate Debt: Revolving Credit Facility $ 250.1 $ 250.1 $ 615.0 $ 615.0 2023 Term Loan Facility 100.0 100.0 — — 2025 Term Loan Facility 700.0 700.0 — — Fixed Rate Debt: 2024 Notes - 2.900% (1) 599.3 638.3 599.2 602.1 2029 Notes - 3.450% (1) 598.4 652.2 598.2 603.1 2027 Notes - 1.450% (1) 585.5 556.7 — — 2030 Notes - 2.150% (1) 395.2 391.3 — — Derivative Contracts: Cross Currency Swaps Liability (2) — 29.9 — 11.4 Interest Rate Swap Liability (2) — 7.9 — — Interest Rate Swap Asset (2) — — — 3.5 Equity Investments carried at Fair Value: GDS equity investment (3) 155.2 155.2 118.7 118.7 (1) - The fair value of notes are based on quoted market prices for these notes, which is considered Level 1 of the fair value hierarchy. (2) - The fair values of our cross currency and interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash flows and the discounted expected variable cash flows based on an expectation of future interest rates derived from Level 2 observable market interest rate curves. (3) - The fair value is based on quoted market prices for the GDS ADSs, which is considered Level 1 of the fair value hierarchy. Hedging Activities When we use derivative instruments, it is generally to reduce our exposure to fluctuations in interest rates and foreign currency exchange rate movements. We have not entered into, and do not plan to enter into, financial instruments for trading or speculative purposes. To manage foreign currency exposure, we have entered into Euro denominated debt and cross-currency swaps to hedge the Company's net investment in its Euro functional currency consolidated subsidiaries and the variability in EUR-USD exchange rate. Accounting for changes in the fair value of derivatives depends on the intended use of the derivative and the designation of the derivative, including whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as foreign currency risk or interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. For derivatives designated as "cash flow" hedges, the change in the fair value of the derivative is initially reported in Other comprehensive income ("OCI") in our Condensed Consolidated Statements of Comprehensive Income (Loss) and subsequently reclassified into Gain (loss) when the hedged transaction affects earnings, or the hedging relationship is no longer highly effective. We assess the effectiveness of each hedging relationship whenever financial statements are issued, or earnings are reported and at least every three months. We also use derivatives, such as foreign currency swaps, that are not designated as hedges to manage foreign currency exchange rate risks. The changes in fair values of these derivatives that were not designated or did not qualify as hedging instruments are immediately, recognized in earnings within the line item Foreign currency and derivative (losses) gains, net in the Condensed Consolidated Statements of Operations. The following table summarizes the Company's derivative positions as of September 30, 2020 and December 31, 2019, (in millions): September 30, 2020 December 31, 2019 Maturity Date Notional Amount Hedged Risk Asset Liability Asset Liability Designated derivatives Cross Currency Swaps EUR - USD 3/29/2023 $ 250.0 Net investment hedge $ — $ 14.9 $ — $ 3.8 EUR - USD 3/29/2023 250.0 Net investment hedge — 15.0 — 3.9 EUR - USD 01/15/2020 155.9 Net investment hedge — — — 1.4 Interest Rate Swaps USD Libor 3/29/2023 300.0 Interest rate hedge - Float to fixed — 7.9 3.5 — Undesignated derivatives Cross Currency Swaps EUR - USD 01/15/2020 265.3 Foreign currency exchange — — — 2.1 EUR - USD 01/15/2020 25.6 Foreign currency exchange — — — 0.2 Total $ 1,246.8 $ — $ 37.8 $ 3.5 $ 11.4 Cross-Currency Swaps The Company has entered into cross-currency swaps whereby the Company pays floating interest rate and receives floating interest rate to hedge the variability of future cash flows attributable to changes in the 1-month USD LIBOR versus EUR LIBOR rates (a pay-floating, receive-floating interest rate swap). The pay-floating, receive-floating interest rate swap payments are recognized in Interest expense, net in the Condensed Consolidated Statements of Operations. As of September 30, 2020, the Company has two cross-currency EUR/USD contracts to sell $500.0 million and purchase €450.7 million maturing in March 2023 representing a fair value liability of $29.9 million reported in Other liabilities. As of December 31, 2019, our cross-currency swaps were a fair value liability of $11.4 million reported in Other liabilities. For the three and nine months ended September 30, 2020 the cross-currency swaps were designated as net investment hedges and losses of $21.8 million and $20.1 million were recognized during this period due to the change in fair value and were recognized in OCI. The Company recognized gains on undesignated cross-currency contracts of $4.5 million for the nine months ended September 30, 2020, which are recognized in Foreign currency and derivative (losses) gains, net in the Condensed Consolidated Statements of Operations. The Company recognized gains on undesignated cross-currency contracts of $5.8 million for the three and nine months ended September 30, 2019. Interest Rate Swaps On September 3, 2019, the Company entered into a floating-fixed interest rate swap agreement to convert $300.0 million of variable interest rate debt of the 2023 Term Loan Facility to 1.19% fixed rate debt to hedge the risk of changes in cash flows attributable to USD-LIBOR interest payments. On September 21, 2020, the Company paid down $300.0 million of term loans under the 2023 Term Loan Facility. The $300.0 million floating-fixed interest rate swap remains in place and continues to provide an effective hedge of the risk of changes in cash flows attributable to USD-LIBOR term loans through March 2023. For the three and nine months ended September 30, 2020, the Company recognized a gain of $0.9 million and a loss of $11.4 million, respectively, related to the changes in fair value of the interest rate swap which were recognized in OCI. As of September 30, 2020, interest rate swaps were a liability of $7.9 million reported in Other liabilities. As of December 31, 2019, interest rate swaps were an asset of $3.5 million reported in Other assets. Net Investment Hedges Exchange rate variations impact our financial results because the financial results of our foreign subsidiaries are translated to U.S. dollars each period, with the effect of exchange rate variations being recorded in OCI as part of the cumulative foreign currency translation adjustment. As a result, changes in the value of our borrowings under the foreign currency denominated revolver under our Revolving Credit Facility, 2027 Notes and synthetically swapped debt will be reported in the same manner as foreign currency translation adjustments, which are recorded in OCI as part of the cumulative foreign currency translation adjustment. The following table presents the effect of our derivative financial instruments on our accompanying condensed consolidated financial statements (in millions): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Derivatives in Cash Flow Hedging Relationships Cross-Currency and Interest Rate Swaps: Amount of gain (loss) recognized in OCI for derivatives $ (20.9) $ 15.5 $ (31.5) $ 14.6 Amount of gain (loss) reclassified from accumulated OCI for derivatives $ (0.8) $ 0.2 $ (0.9) $ 0.2 During the next 12 months, we estimate that immaterial amounts will be reclassified from "Accumulated OCI" to Net income (loss). |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stockholders' Equity | Stockholders' Equity During the fourth quarter of 2018, the Company entered into sales agreements pursuant to which the Company may issue and sell from time to time shares of its common stock having an aggregate sales price of up to $750.0 million (the "New 2018 ATM Stock Offering Program"). During the second quarter of 2020, the Company entered into sales agreements pursuant to which the Company may issue and sell from time to time shares of its common stock having an aggregate sales price of up to $750.0 million (the "2020 ATM Stock Offering Program"). The 2020 ATM Stock Offering Program replaced the New 2018 ATM Stock Offering Program. During the nine months ended September 30, 2020, the Company settled forward agreements totaling 5.0 million common shares at an average price of $63.61 for proceeds of $315.6 million, net of expenses. During the nine months ended September 30, 2019, the Company sold 4.9 million common shares at an average price of $52.22 for proceeds of $252.2 million, net of expenses. At September 30, 2020, the Company had approximately 120.4 million shares of common stock outstanding. As of September 30, 2020, there was approximately $227.6 million under the 2020 ATM Stock Offering Program available for future offerings. Forward Sales In November 2019, CyrusOne Inc. entered into a forward equity sale agreement with a financial institution acting as forward purchaser under the New 2018 ATM Stock Offering Program with respect to 1.6 million shares of its common stock at an initial forward price of $61.67 per share. The Company fully physically settled this forward equity sale agreement in June 2020. Upon settlement, the Company issued all such shares to such financial institution in its capacity as forward purchaser, in exchange for proceeds of approximately $96.5 million, in accordance with the provisions of the forward equity sale agreement. During the nine months ended September 30, 2020, CyrusOne Inc. entered into forward equity sale agreements with financial institutions acting as forward purchasers under the New 2018 ATM Stock Offering Program and the 2020 ATM Stock Offering Program, as applicable, with respect to approximately 9.1 million shares of its common stock at a weighted average price of $69.19 per share, net of expenses. The Company received proceeds of $219.1 million from the sale of 3.4 million of its common shares by the forward purchasers in respect of forward equity sale agreements entered during the nine months ended September 30, 2020. The Company currently expects to fully physically settle the remaining forward equity sale agreements by September 2021 and receive cash proceeds upon one or more settlement dates at the Company’s discretion, prior to the final settlement dates under the forward equity sale agreements, in which case we expect to receive aggregate net cash proceeds at settlement equal to the number of shares specified in such forward equity sale agreements multiplied by the relevant forward price per share. The weighted average forward sale price that we expect to receive upon physical settlement of the agreements will be subject to adjustment for (i) a floating interest rate factor equal to a specified daily rate less a spread, (ii) the forward purchasers’ stock borrowing costs and (iii) scheduled dividends during the terms of the agreements. The following table represents a summary of forward sale of equity of our common stock for the nine-month period ended September 30, 2020 (in millions): Offering Program Forward Shares Sold/(Settled) Net Proceeds Received Remaining Proceeds Available (1) Total as of December 31, 2019 1.6 $ — $ 96.5 March 9, 2020 Forward Offering - Sales 2.0 — 121.2 May 13, 2020 Forward Offering - Sales 1.4 — 97.9 May 26, 2020 Forward Offering - Sales 1.4 — 97.1 May 29, 2020 Forward Offering - Sales 1.4 — 97.2 November 29, 2019 Forward Offering settlement (1.6) 96.5 (96.5) March 9, 2020 Forward Offering settlement (2.0) 121.2 (121.2) May 13, 2020 Forward Offering settlement (1.4) 97.9 (97.9) September 15, 2020 Forward Offering - Sales 1.4 — 103.1 September 30, 2020 Forward Offering - Sales 1.6 — 115.6 Total as of September 30, 2020 5.8 $ 315.6 $ 413.0 (1) As of September 30, 2020, the total estimated proceeds, net of adjustments for (i) a floating interest rate factor equal to a specified daily rate less a spread, (ii) the forward purchasers’ stock borrowing costs and (iii) scheduled dividends adjustments is $413.0 million subject to further adjustment when the forward offerings are settled as described above. Dividends During the nine months ended September 30, 2020 and 2019, regular dividends were paid to our stockholders of $1.51 and $1.42 per common share, respectively, totaling $174.7 million and $153.5 million, respectively. On October 28, 2020, the Company announced a cash dividend of $0.51 per common share payable on January 8, 2021, to stockholders of record at the close of business on January 4, 2021. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock Plans The board of directors of CyrusOne Inc. adopted the 2012 Long-Term Incentive Plan ("LTIP"), prior to the IPO, which was amended and restated on May 2, 2016 and February 18, 2019. The LTIP is administered by the compensation committee of the board of directors. Awards issuable under the LTIP include common stock, restricted stock, restricted stock units, stock options and other incentive awards. CyrusOne Inc. has reserved a total of 8.9 million shares of CyrusOne Inc. common stock for issuance pursuant to the LTIP, which may be adjusted for changes in capitalization and certain corporate transactions. To the extent that an award, if forfeitable, expires, terminates or lapses, or an award is otherwise settled in cash without the delivery of shares of common stock to the participant, then any unpaid shares subject to the award will be available for future grant or issuance under the LTIP. The payment of dividend equivalents in cash in conjunction with any outstanding awards will not be counted against the shares available for issuance under the LTIP. The related stock compensation expense incurred by CyrusOne Inc. is allocated to the operating partnership. Shares available under the LTIP as of September 30, 2020 were approximately 4.3 million. Shares vest according to each agreement and as long as the employee remains employed with the Company. The Company has granted awards with time-based vesting, performance-based vesting and market-based vesting features. Restricted stock units and restricted stock are issued as either time-based (where the award vests ratably over time and is not subject to future performance targets and, accordingly, is initially recorded at the current market price at the time of grant) or performance-based (where the award is recorded at fair value at the time of grant and vesting of the award, if any, is based on achieving certain financial targets, currently based on total shareholder return). The restricted stock units have the right to receive dividend equivalents in cash and holders of restricted stock have the right to receive dividends. The performance-based awards accrue dividends equivalents that are payable in cash upon the vesting of the award. Compensation expense is measured based on the estimated grant-date fair value. Expense for time-based grants is recognized under a straight-line method. For market-based grants, expense is recognized under a graded expense attribution method. For performance-based grants, expense is recognized under a graded expense attribution method if it is probable that the performance targets will be achieved. Total stock-based compensation expense was $6.7 million and $13.7 million for the three and nine months ended September 30, 2020, respectively, and $4.3 million and $12.4 million for the three and nine months ended September 30, 2019, respectively. The following tables summarize the unvested restricted stock units, restricted stock and stock options activity and the weighted average fair value of these shares at the date of grant for the nine months ended September 30, 2020 and 2019 (performance-based awards are reflected at the target amount of the grant): Restricted Stock Units ("RSU") 2020 2019 Restricted Stock Units Weighted Average Grant Date Fair Value Restricted Stock Units Weighted Average Grant Date Fair Value Outstanding January 1, 646,619 $ 55.80 511,409 $ 56.23 Granted 220,176 97.49 397,631 48.70 TSR and other adjustments (a) 164,071 91.32 — — Exercised (371,186) 81.23 (135,619) 46.09 Forfeited (155,466) 58.68 (77,763) 53.01 Outstanding September 30, 504,214 $ 67.87 695,658 $ 54.26 Time-based RSUs outstanding 230,951 $ 60.32 341,773 $ 53.42 Performance-based RSUs outstanding 273,263 $ 74.24 353,885 $ 55.08 (a) TSR adjustments represent the incremental shares earned for the total stockholder return (TSR) performance metric exceeding target and resulting in 200% payout for the 2017 LTIP Performance Awards. Restricted Stock ("RS") 2020 2019 Restricted Stock Weighted Average Grant Date Fair Value Restricted Stock Weighted Average Grant Date Fair Value Outstanding January 1, 16,681 $ 52.46 419,356 $ 35.73 Granted 100,649 74.64 16,681 52.46 Exercised (16,681) 52.46 (370,554) 35.38 Forfeited — — (34,603) 37.09 Outstanding September 30, 100,649 $ 74.64 30,880 $ 47.39 Time-based RSs outstanding 100,649 $ 74.64 30,880 $ 47.39 Performance-based RSs outstanding — $ — — $ — Stock Options 2020 2019 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Outstanding January 1, 375,086 $ 31.64 401,223 $ 31.96 Granted — — — — Exercised (277,285) 31.92 (25,586) 36.70 Forfeited — — (551) 23.58 Outstanding September 30, 97,801 $ 30.87 375,086 $ 31.64 Time-based stock options outstanding 80,871 $ 32.40 323,101 $ 32.94 Performance-based stock options outstanding 16,930 $ 23.58 51,985 $ 23.58 |
Income (Loss) per Share
Income (Loss) per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Income (Loss) per Share | Income (Loss) per Share Basic income (loss) per share is calculated using the weighted average number of shares of common stock outstanding during the period. In addition, Net income (loss) applicable to participating securities and the participating securities are both excluded from the computation of basic income (loss) per share. Diluted income (loss) per share is calculated using the weighted average number of shares of common stock outstanding during the period, including restricted stock outstanding. If there is Net income (loss) during the period, the dilutive impact of common stock equivalents outstanding are also reflected. The following table reflects the computation of basic and diluted Net income (loss) per share for the three and nine months ended September 30, 2020 and 2019: IN MILLIONS, except per share amounts Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Basic Diluted Basic Diluted Basic Diluted Basic Diluted Numerator: Net (loss) income $ (37.3) $ (37.3) $ 12.6 $ 12.6 $ 22.4 $ 22.4 $ 93.5 $ 93.5 Less: Restricted stock dividends (0.1) (0.1) (0.2) (0.2) (0.4) (0.4) (0.5) (0.5) Net income available to stockholders $ (37.4) $ (37.4) $ 12.4 $ 12.4 $ 22.0 $ 22.0 $ 93.0 $ 93.0 Denominator: Weighted average common outstanding - basic 118.7 118.7 113.1 113.1 116.3 116.3 111.5 111.5 Performance-based restricted stock and units — 0.4 0.4 0.4 Weighted average shares outstanding - diluted 118.7 113.5 116.7 111.9 EPS: (Loss) income per share - basic $ (0.32) $ 0.11 $ 0.19 $ 0.83 Effect of dilutive shares: (Loss) income per share - diluted $ (0.32) $ 0.11 $ 0.19 $ 0.83 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes CyrusOne Inc. elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the "Code"), commencing with its taxable year ended December 31, 2013. To remain qualified as a REIT, the Company is required to distribute at least 90% of its taxable income to its stockholders and meet various other requirements imposed by the Code relating to such matters as operating results, asset holdings, distribution levels and diversity of stock ownership. Provided the Company continues to qualify for taxation as a REIT, the Company is generally not subject to corporate level federal income tax on the earnings distributed currently to its stockholders. It is the Company's policy and intent, subject to change, to distribute 100% of its taxable income and therefore no provision is required in the accompanying financial statements for federal income taxes with regards to activities of CyrusOne Inc. and its subsidiary pass-through entities. CyrusOne Inc. and certain of its subsidiaries are subject to state and local income taxes, franchise taxes, and gross receipts taxes. The Company has elected to treat certain of its subsidiaries as taxable REIT subsidiaries ("TRSs"). The Company's TRSs are subject to U.S. federal, state and local corporate income taxes. The Company's foreign subsidiaries are subject to corporate income taxes in the jurisdictions in which they operate. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies As of September 30, 2020, the Company had outstanding letters of credit of $10.8 million as security for obligations under the terms of its lessee agreements. The Company has entered into non-cancellable contracted commitments for construction of data center facilities and acquisition of equipment. As of September 30, 2020, these commitments were approximately $183.7 million and are expected to be incurred over the next one one The Company has entered into an Agreement to Lease contract that requires the Company to enter into a lease upon shell completion of a building in London, UK totaling 70,000 square feet with annual rent totaling £1.4 million for an initial lease term of 20 years. We expect construction of the shell building to be completed in the first quarter of 2021. During the normal course of business, the Company and its subsidiaries have made certain indemnities and commitments to customers, vendors and associated parties related to the use, protection and security of intellectual property and claims for negligence or willful misconduct. Further, customer contracts generally require specified levels of performance related to uninterrupted service and cooling temperatures. Also, in the normal course of our business, the Company is involved in legal, tax and regulatory proceedings arising from the conduct of its business activities. Management assesses the probability that these performance standards, credits, claims or indemnities have been incurred and liabilities or asset reserves are established |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Risks and Uncertainties | Risks and Uncertainties The novel strain of the coronavirus (COVID-19) identified in China in late 2019 has globally spread throughout Asia, Europe, the Middle East and the Americas and has resulted in authorities implementing numerous measures to attempt to contain the virus. This includes travel bans, shelter in place regulations and other restrictions and shutdowns. We continue to monitor the global outbreak and the potential risks to us posed by the pandemic. Our data centers have remained fully operational and to date we have experienced minimal disruptions in our business, including construction projects, however, we have modified our business practices by temporarily closing our corporate headquarters and regional locations, transitioned non-essential employees to working remotely from their homes, implemented restrictions on the physical participation in meetings and significantly limited business travel. The duration and extent of the impact from the COVID-19 pandemic depends on future developments that cannot be accurately predicted at this time. The effect of the pandemic and measures implemented by authorities could disrupt our supply chain, which currently remains fully functional, including the provision of services to us by our vendors and could result in restrictions on construction activities. There continues to be considerable uncertainty about the impact of these measures and restrictions on our Company and customers and the effects of these measures and how long they will remain in effect could adversely impact our business, financial condition, results of operations and liquidity. |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company, as well as all wholly-owned subsidiaries and any consolidated variable interest entities. All intercompany balances and transactions have been eliminated in consolidation. |
Investment in Real Estate | Investment in Real Estate Acquisition of Properties Investment in real estate consist of land, buildings, improvements and integral equipment utilized in our data center operations. We expect most acquisitions to be an acquisition of assets rather than a business combination as our typical acquisitions consist of properties whereby substantially all the fair value of gross assets acquired is concentrated in a single asset set (land, building and in-place leases), which are treated as asset acquisitions. See Business Combinations and Asset Acquisitions herein. |
Business Combinations and Asset Acquisitions | Business Combinations and Asset Acquisitions We evaluate whether an acquisition is a business combination or an asset acquisition by determining whether the set of assets is a business. Asset Acquisitions When substantially all of the fair value of gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, the transaction is accounted for as an asset acquisition. Asset acquisitions are recorded at the cumulative acquisition costs and allocated to the assets acquired and liabilities assumed on a relative fair value basis. The Company allocates the purchase price of real estate to identifiable tangible assets such as land, building, land improvements and tenant improvements acquired based on their fair value. In estimating the fair value of each component, management considers appraisals, replacement cost, its own analysis of recently acquired and existing comparable properties, market rental data and other related information. Transaction costs associated with asset acquisitions are capitalized. Business Combinations When substantially all of the fair value is not concentrated in a group of similar identifiable assets, the set of assets will generally be considered a business and the Company applies the purchase method for business combinations, where all tangible and identifiable intangible assets acquired and all liabilities assumed are recorded at fair value. Any excess purchase price is recorded as goodwill. Transaction costs associated with business combinations are expensed as incurred. The following discussion applies to our initial determination of fair value and the resulting subsequent accounting which is generally applicable to both asset acquisitions and business combinations. The fair value of any tangible real estate assets acquired is determined by valuing the building as if it were vacant, and the fair value is then allocated to land, buildings, equipment and improvements based on available information including replacement cost, appraisal or using net operating income capitalization rates, discounted cash flow analysis or similar fair value models. We determine in-place lease values based on our evaluation of the specific characteristics of each tenant’s lease agreement and by applying a fair value model. The estimates of fair value of in-place leases include an estimate of carrying costs during the expected lease up periods considering current market conditions. In estimating fair value of in-place leases, we consider items such as real estate taxes, insurance, leasing commissions, tenant improvements and other operating expenses to execute similar leases as well as projected rental revenue and carrying costs during the expected lease up period. We amortize the value of in-place leases acquired to expense over the approximate weighted average remaining term of the leases, adjusted for projected tenant turnover, on a composite basis. We determine the value of above-market and below-market in-place leases for acquired properties based on the present value (using an interest rate that reflects the risks associated with the leases acquired) of the difference between (1) the contractual amounts to be paid pursuant to the in-place leases and (2) estimates of current market lease rates for the corresponding in-place leases, measured over a period equal to (i) the remaining non-cancellable lease term for above-market leases, or (ii) the remaining non-cancellable lease term plus any renewal options that we consider are reasonably certain that a lessee will execute such renewal option when a lease commences. We record the fair value of above-market and below-market leases as intangible assets or liabilities, and amortize them as an adjustment to revenue over the lease term. We determine the fair value of assumed debt by calculating the net present value of the scheduled debt service payments using current market-based terms for interest rates for debt with similar terms that management believes we could obtain on similar structures and maturities. Any difference between the fair value and stated value of the assumed debt is recorded as a discount or premium and amortized over the remaining term of the loan. |
Capitalization of Costs | Capitalization of Costs We capitalize costs directly related to the development, pre-development or improvement of our investment in real estate, referred to as capital projects and other activities included within this paragraph. Costs associated with our capital projects are capitalized as incurred. If the project is abandoned, these costs are expensed during the period in which the project is abandoned. Costs considered for capitalization include, but are not limited to, construction costs, interest, real estate taxes, insurance and utilities, if appropriate. We capitalize indirect costs such as personnel, office and administrative expenses that are directly related to our development projects based on an estimate of the time spent on the construction and development activities. These costs are capitalized only during the period in which activities necessary to ready an asset for its intended use are in progress and such costs are incremental and identifiable to a specific activity to get the asset ready for its intended use. We determine when the capitalization period begins and ends through communication with project and other managers responsible for the tracking and oversight of individual projects. In the event that the activities to ready the asset for its intended use are suspended, the capitalization period will cease until such activities are resumed. In addition, we capitalize incremental initial direct costs incurred for successful origination of new leases which include internal and external leasing commissions. Interest expense is capitalized based on actual qualifying capital expenditures from the period when development commences until the asset is ready for its intended use, at the weighted average borrowing rate during the period. These costs are included in investment in real estate and depreciated over the estimated useful life of the related assets. Costs incurred for maintaining and repairing our properties, which do not extend their useful lives, are expensed as incurred. |
Impairment Losses | Impairment LossesWhen events or circumstances indicate that the carrying amount of a real estate investment may not be recoverable, we review the carrying value of the asset. When such impairment indicators exist, we review an estimate of the undiscounted future cash flows expected to result from the use of the real estate investment and proceeds from its eventual disposition and compare such amount to the carrying amount of the real estate investment. If our undiscounted cash flows indicate that we are unable to recover the carrying value of the real estate investment, an impairment loss is recognized. An impairment loss is measured as the amount by which the real estate investment's carrying value exceeds its estimated fair value |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents include all non-restricted cash held in financial institutions and other non-restricted highly liquid short-term investments with original maturities of three months or less. Restricted cash includes cash equivalents restricted by contract or regulation, including letters of credit. |
Equity Investments | Equity Investments We hold investments in various joint ventures where the Company evaluates its ability to influence the operating or financial decisions of the investee in applying the appropriate method of accounting for such investments. Influence tends to be more effective as the investor's percent of ownership in the voting rights of the investee increases. Our equity investments represent less than 20% of the voting rights of the investees and we do not exercise influence over the investee's operating and financial decisions. Accordingly, we do not account for our equity investments using the equity method of accounting. For further information about our equity investments, see Note 7, Equity Investments. Our investment in GDS Holdings Limited ("GDS") is classified as "available for sale" and is carried at fair value. Changes in the fair value are reported as a component of net income in Gain on marketable equity investments. |
Revenue Recognition | Revenue Recognition Our revenue consists of lease revenue and revenue from contracts with customers. Lease Revenue: Our leasing revenue primarily consists of colocation rent, metered power reimbursements and interconnection revenue and is accounted for under ASC 842, Leases. We generally are not entitled to reimbursements for rental expenses including real estate taxes, insurance or other common area operating expenses. a. Colocation Rent Revenue Colocation rent revenues, including interconnection revenue, are fixed minimum lease payments generally billed monthly in advance based on the contracted power or leased space. Some contracts may provide initial free rent periods and rents that escalate over the term of the contract. If rents escalate without the lessee gaining access to or control over additional leased power or space at the beginning of the lease term, the rental payments are recognized as revenue on a straight-line basis over the term of the lease. If rents escalate because the lessee gains access to and control over additional power and or leased space, revenue is recognized in proportion to the additional power or space in the periods that the lessee has control over the use of the additional power or space. The excess of revenue recognized over amounts contractually due is recognized as a straight-line receivable, which is included in rent and other receivables in our Condensed Consolidated Balance Sheet. Some of our leases are structured on a gross basis in which the customer pays a fixed amount for colocation space and power. The revenue for these types of leases is recorded in colocation rent revenue. b. Metered Power Reimbursements Revenue Some of our leases provide that the customer is separately billed for power based upon actual or estimated metered usage at rates then in effect. Metered power reimbursement revenue is variable lease payments generally billed one month in arrears, and an estimate of this revenue is accrued in the month that the associated power is provided and recorded in metered power reimbursements revenue. Revenue from Contracts with Customers Revenue from our managed services, equipment sales, installations and other services are recognized under ASC 606, Revenue from Contracts with Customers. Equipment sold by us generally consists of servers, switches, networking equipment, cable infrastructure and cabinets. Revenue is recognized at a point-in-time when control of the equipment transfers to the customer from the Company, which generally occurs upon delivery to the customer. Managed services include providing of a full-service managed data center, monitoring customer computer equipment, managing backups and storage, utilization reporting and other related ancillary information technology services. Management service contracts generally range from one Installation services include mounting, wiring, and testing of customer owned equipment. The installation period is typically short term in duration, and accordingly, revenue from the installation of customer equipment is recognized at a point-in-time once the installation is complete and the performance obligation is satisfied. Other services generally include installation of customer equipment, performing customer system re-boots, server cabinet and cage management, power monitoring, shipping |
Rent and Other Receivables | Rent and Other Receivables Receivables consist principally of trade receivables from customers and straight-line rent receivables with expected credit losses recorded as an allowance for doubtful accounts. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions The financial position of foreign subsidiaries is translated at the exchange rates in effect at the end of the period, while revenues and expenses are translated at average exchange rates during the period. Gains or losses from translation of foreign operations where the local currency is the functional currency are included as components of Other comprehensive income (loss). Gains or losses from foreign currency transactions are included in determining net income. |
Stock-Based Compensation | Stock-Based Compensation We have a stock-based incentive award plan for our employees and directors. Stock-based compensation expense associated with these awards is recognized in General and administrative expenses, Property operating expenses, and Sales and marketing expenses in our Condensed Consolidated Statements of Operations. We measure stock-based compensation at the estimated fair value on the grant date and recognize the amortization of stock-based compensation expense over the requisite service period. Fair value is determined based on assumptions related to stock volatility, risk-free rate of return, and estimates of market and company performance. |
Fair Value Measurements | Fair Value Measurements Fair value measurements are utilized in accounting for business combinations, asset acquisitions, testing of goodwill and other long-lived assets for impairment, recording unrealized gain on available-for-sale securities, derivatives and related disclosures. Fair value of financial and non-financial assets and liabilities is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The three-tier hierarchy that prioritizes certain inputs used in the methodologies of measuring fair value for asset and liabilities, is as follows: Level 1—Observable inputs for identical instruments such as quoted market prices; Level 2—Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs); and Level 3—Unobservable inputs that reflect our determination of assumptions that market participants would use in pricing the asset or liability. These inputs are developed based on the best information available, including our own data. |
Derivative Instruments | Derivative Instruments Derivative instruments are measured at fair value and recorded in Other assets and Other liabilities, depending on our rights or obligations under the applicable derivative contract. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For a derivative designated and that qualified as a cash flow hedge, the effective portion of the change in fair value of the derivative is recognized in the Condensed Consolidated Statement of Comprehensive Income (Loss) until the hedged item is recognized in earnings. Any ineffective portion of a derivative's change in fair value is immediately recognized in earnings. For interest rate derivatives, amounts recognized in earnings are reflected in Interest expense, net. For a derivative designated and that qualified as a net investment hedge, the effective portion of the change in the fair value and/or the net settlement of the derivative are reported in the Condensed Consolidated Statement of Comprehensive Income (Loss). Any ineffective portion of the change in fair value of the derivative is recognized directly in earnings. Amounts are reclassified out of other comprehensive income (loss) into earnings when the hedged investment is either sold or substantially liquidated. |
Recently Adopted Accounting Pronouncements and New Accounting Pronouncements | Recently Adopted Accounting Standards Lease Modification Q&A Due to the business disruptions and challenges severely affecting the global economy caused by the COVID-19 pandemic, lessors may provide rent deferrals and other lease concessions to lessees. While the lease modification guidance in ASC 842, Leases, the new accounting standard for leases addresses changes to lease terms resulting from negotiations between the lessee and the lessor, this guidance did not contemplate concessions being so rapidly executed to address the impact from the COVID-19 pandemic on the lessor's business. In April 2020, the Financial Accounting Standards Board ("FASB") issued a question and answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of the COVID-19 pandemic. Under the new accounting standard for leases, the Company must determine, on a lease by lease basis, if a lease concession resulted in a lease modification. The Lease Modification Q&A allows the Company, if certain criteria have been met, to bypass the lease by lease analysis, and instead elect to either apply the lease modification accounting framework or not, with such election applied consistently to leases with similar characteristics and circumstances. The adoption of this guidance has not had a material impact on our financial statements. Guarantor Financial Information In March 2020, the SEC amended Rule 3-10 of Regulation S-X to reduce and simplify financial disclosure requirements for issuers and guarantors of registered debt offerings. The guidance is effective January 4, 2021, with early adoption permitted. This new guidance replaces the previous requirement to provide condensed consolidating financial information in the registrant’s financial statements with a requirement to provide alternative financial disclosures in Item 2 "Management's Discussion and Analysis of Financial Condition and Results of Operations" or its financial statements. We adopted these amendments as of April 1, 2020, and the alternative disclosures are presented in Item 2 "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the information previously included in the Notes to Condensed Consolidated Financial Statements has been removed. Intangibles-Goodwill and Other Internal-Use Software We adopted ASU 2018-15, Intangibles Goodwill and Other Internal Use Software on a prospective basis effective January 1, 2020. The adoption did not have a significant impact on the Company. Fair Value Measurement On January 1, 2020, we adopted ASU 2018-13, Fair Value Measurement, which changes the fair value measurement disclosure requirements of ASC 820, Fair Value Measurement. The amendments are part of the FASB’s disclosure framework project to improve the effectiveness of disclosures important to financial statement users including information about assets and liabilities measured at fair value in our Condensed Consolidated Balance Sheets. The adoption did not have a significant impact on the Company. Financial Instruments - Credit Losses On January 1, 2020, we adopted ASU 2016-13, Financial Instruments-Credit Losses (CECL), which requires certain financial assets to be presented at the net amount expected to be collected. CECL and its related amendments apply to our customer contract trade receivables, notes receivable and net investments in leases. Our Rent and other receivables are primarily comprised of rent receivables, which are not within the scope of this sub-topic. The adoption did not have a significant impact on the Company because of our limited exposure to financial instruments subject to this standard. New Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies various aspects related to the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes and clarifies certain aspects of the guidance to promote consistency among reporting entities. The guidance is |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Lessor, Operating Lease, Payments to be Received, Maturity | At September 30, 2020, the future minimum lease payments to be received under non-cancellable operating leases, excluding month-to-month arrangements and metered power reimbursements are shown below (in millions): As of September 30, 2020 Minimum Lease Payments 2020 $ 198.9 2021 721.9 2022 614.5 2023 493.7 2024 377.7 2025 307.8 Thereafter 837.3 Total $ 3,551.8 At September 30, 2019, the future minimum lease payments to be received under non-cancellable operating leases, excluding month-to-month arrangements and metered power reimbursements are shown below (in millions): As of September 30, 2019 Minimum Lease Payments 2019 $ 188.2 2020 708.0 2021 603.2 2022 508.8 2023 413.5 2024 319.3 Thereafter 957.4 Total $ 3,698.4 |
Disaggregation of Revenue | For the three and nine months ended September 30, 2020 and 2019, lease revenue disaggregated by primary revenue stream is as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, Lease revenue 2020 2019 2020 2019 Colocation (Minimum lease payments) $ 212.5 $ 202.4 $ 624.0 $ 588.2 Metered power reimbursements (Variable lease payments) 44.6 41.1 116.5 101.3 Total lease revenue $ 257.1 $ 243.5 $ 740.5 $ 689.5 For the three and nine months ended September 30, 2020 and 2019, revenue from contracts with customers disaggregated by primary revenue stream is as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, Revenue from contracts with customers 2020 2019 2020 2019 Equipment sales and services $ 0.6 $ 2.4 $ 10.0 $ 23.4 Other revenue 5.1 5.0 14.6 14.5 Total revenue from contracts with customers $ 5.7 $ 7.4 $ 24.6 $ 37.9 |
Leases - As a Lessee (Tables)
Leases - As a Lessee (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Lease, Cost | The components of lease expense are as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Operating lease cost $ 5.1 $ 5.0 $ 15.0 $ 14.6 Finance lease cost: Amortization of assets 0.7 0.4 1.5 1.5 Interest on lease liabilities 0.4 0.4 1.1 1.3 Total net lease cost $ 6.2 $ 5.8 $ 17.6 $ 17.4 Supplemental cash flow and other information related to leases is as follows (in millions): Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 16.7 $ 16.7 Operating cash flows from finance leases 1.1 1.3 Financing cash flows from finance leases 2.0 2.1 Non-cash right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 56.9 $ 101.4 Finance leases — 0.8 |
Assets And Liabilities, Lessee | Supplemental balance sheet information related to leases is as follows (in millions, except lease term and discount rate): September 30, 2020 December 31, 2019 Operating leases: Operating lease right-of-use assets $ 206.9 $ 161.9 Operating lease liabilities $ 244.3 $ 195.8 Finance leases: Property and equipment, at cost $ 33.0 $ 34.9 Accumulated amortization (6.4) (5.0) Property and equipment, net $ 26.6 $ 29.9 Finance lease liabilities $ 29.2 $ 31.8 Weighted average remaining lease term (in years): Operating leases 14.4 15.8 Finance leases (a) 18.1 18.1 Weighted average discount rate: Operating leases 3.8 % 3.9 % Finance leases (a) 4.8 % 4.9 % (a) Excludes a 999-year ground lease in Dublin, The Republic of Ireland entered into during the third quarter of 2019. The Dublin finance lease was capitalized as land and included in Construction in progress, including land under development on the consolidated balance sheets. |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities were as follows as of September 30, 2020 (in millions): Operating Leases Finance Leases 2020 $ 6.3 $ 1.8 2021 25.7 4.0 2022 27.2 2.9 2023 23.4 1.8 2024 19.0 1.5 2025 17.3 1.6 Thereafter 213.6 28.8 Total lease payments $ 332.5 $ 42.4 Less: Imputed interest (88.2) (13.2) Total lease obligations $ 244.3 $ 29.2 Maturities of lease liabilities were as follows as of December 31, 2019 (in millions): Operating Leases Finance Leases 2020 $ 22.4 $ 5.0 2021 21.0 4.1 2022 22.4 2.9 2023 18.5 1.9 2024 13.9 1.4 Thereafter 165.4 31.1 Total lease payments $ 263.6 $ 46.4 Less: Imputed interest (67.8) (14.6) Total lease obligations $ 195.8 $ 31.8 |
Finance Lease, Liability, Maturity | Maturities of lease liabilities were as follows as of September 30, 2020 (in millions): Operating Leases Finance Leases 2020 $ 6.3 $ 1.8 2021 25.7 4.0 2022 27.2 2.9 2023 23.4 1.8 2024 19.0 1.5 2025 17.3 1.6 Thereafter 213.6 28.8 Total lease payments $ 332.5 $ 42.4 Less: Imputed interest (88.2) (13.2) Total lease obligations $ 244.3 $ 29.2 Maturities of lease liabilities were as follows as of December 31, 2019 (in millions): Operating Leases Finance Leases 2020 $ 22.4 $ 5.0 2021 21.0 4.1 2022 22.4 2.9 2023 18.5 1.9 2024 13.9 1.4 Thereafter 165.4 31.1 Total lease payments $ 263.6 $ 46.4 Less: Imputed interest (67.8) (14.6) Total lease obligations $ 195.8 $ 31.8 |
Investment in Real Estate (Tabl
Investment in Real Estate (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Real Estate [Abstract] | |
Schedule of Major Components of Real Estate Investments and Intangibles | As of September 30, 2020 and December 31, 2019, major components of our real estate investments and intangibles and related accumulated depreciation and amortization are as follows (in millions): As of: September 30, 2020 December 31, 2019 Cost Accumulated Depreciation and Amortization Net book value Cost Accumulated Depreciation and Amortization Net book value Investment in real estate Building and improvements $ 1,918.4 $ (613.6) $ 1,304.8 $ 1,761.4 $ (545.1) $ 1,216.3 Equipment 3,341.7 (1,049.8) 2,291.9 3,028.2 (834.1) 2,194.1 Intangible assets Customer relationships $ 247.1 $ (160.1) $ 87.0 $ 247.1 $ (151.1) $ 96.0 In-place leases 137.0 (66.0) 71.0 137.1 (46.7) 90.4 Other contractual 19.4 (11.0) 8.4 19.4 (9.7) 9.7 Total intangible assets $ 403.5 $ (237.1) $ 166.4 $ 403.6 $ (207.5) $ 196.1 |
Schedule Of Useful Lives | Depreciation and amortization are calculated using the straight-line method over the useful lives of the assets. The typical life of owned assets are as follows: Buildings 30 years Building improvements 30 years Equipment 20 years |
Equity Investments (Tables)
Equity Investments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | The Company has the following equity investments where it has a noncontrolling interest in the investees (in millions). Equity Investments as of: Investees Equity Method September 30, 2020 December 31, 2019 GDS, Class A share equivalent Fair value $ 155.2 $ 118.7 ODATA investments Cost method 22.9 16.4 Equity investments $ 178.1 $ 135.1 |
Schedule of Unrealized Loss on Investments | Three Months Ended September 30, Nine Months Ended September 30, IN MILLIONS 2020 2019 2020 2019 Net gain on marketable equity investments $ 4.7 $ 12.4 $ 69.8 $ 105.1 Less: Net gain recognized on marketable equity investments sold 0.6 — 12.4 66.9 Unrealized gain on marketable equity investments held $ 4.1 $ 12.4 $ 57.4 $ 38.2 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | As of September 30, 2020 and December 31, 2019, the components of Other assets are as follows (in millions): September 30, 2020 December 31, 2019 Deferred leasing and other contract costs $ 58.7 $ 53.2 Prepaid expenses 20.6 22.1 Non-real estate assets, net 14.5 16.3 Derivative assets — 3.5 Other assets 19.0 18.8 Total $ 112.8 $ 113.9 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | As of September 30, 2020 and December 31, 2019, the components of Debt are as follows (unless otherwise noted, interest rate and maturity date information are as of September 30, 2020) (in millions): September 30, 2020 December 31, 2019 Interest Rate Maturity Date Amended Credit Agreement: Revolving Credit Facility: March 2024 (b) EUR Revolver $ 140.7 $ — Monthly LIBOR + 1.00% GBP Revolver (a) 109.4 — Monthly LIBOR + 1.00% 2023 Term Loan Facility (c) 100.0 — Monthly LIBOR + 1.20% March 2023 2025 Term Loan Facility 700.0 — Monthly LIBOR + 1.20% March 2025 $3.0 Billion Credit Facility: $1.7 Billion Revolving Credit Facility: March 2022 US Revolver — 555.0 Monthly LIBOR + 1.20% EUR Revolver — 33.6 Monthly EURIBOR + 1.20% GBP Revolver — 26.4 Monthly LIBOR + 1.20% 2023 Term Loan — 800.0 Monthly LIBOR + 1.35% March 2023 2025 Term Loan — 300.0 Monthly LIBOR + 1.65% March 2025 2024 Notes, including bond discount of $0.7 million 599.3 599.2 2.900 % November 2024 2029 Notes, including bond discount of $1.6 million 598.4 598.2 3.450 % November 2029 2027 Notes, including bond discount of $0.7 million (d) 585.5 — 1.450 % January 2027 2030 Notes, including bond discount of $4.8 million 395.2 — 2.150 % November 2030 Deferred financing costs (30.7) (25.8) — — Total $ 3,197.8 $ 2,886.6 (a) - Monthly USD LIBOR and GBP LIBOR as of September 30, 2020 was 0.15% and 0.05%, respectively. (b) - The Company has an option to exercise a one (c) - The Company has an option to exercise two 1-year extension options, subject to certain conditions. (d) - The 2027 Notes represent €495.3 million, including bond discount of €0.6 million of Euro bonds. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Fair Value of Other Financial Instruments | The carrying value and fair value of other financial instruments are as follows (in millions): September 30, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value Debt: Variable Rate Debt: Revolving Credit Facility $ 250.1 $ 250.1 $ 615.0 $ 615.0 2023 Term Loan Facility 100.0 100.0 — — 2025 Term Loan Facility 700.0 700.0 — — Fixed Rate Debt: 2024 Notes - 2.900% (1) 599.3 638.3 599.2 602.1 2029 Notes - 3.450% (1) 598.4 652.2 598.2 603.1 2027 Notes - 1.450% (1) 585.5 556.7 — — 2030 Notes - 2.150% (1) 395.2 391.3 — — Derivative Contracts: Cross Currency Swaps Liability (2) — 29.9 — 11.4 Interest Rate Swap Liability (2) — 7.9 — — Interest Rate Swap Asset (2) — — — 3.5 Equity Investments carried at Fair Value: GDS equity investment (3) 155.2 155.2 118.7 118.7 (1) - The fair value of notes are based on quoted market prices for these notes, which is considered Level 1 of the fair value hierarchy. (2) - The fair values of our cross currency and interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash flows and the discounted expected variable cash flows based on an expectation of future interest rates derived from Level 2 observable market interest rate curves. (3) - The fair value is based on quoted market prices for the GDS ADSs, which is considered Level 1 of the fair value hierarchy. |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the Company's derivative positions as of September 30, 2020 and December 31, 2019, (in millions): September 30, 2020 December 31, 2019 Maturity Date Notional Amount Hedged Risk Asset Liability Asset Liability Designated derivatives Cross Currency Swaps EUR - USD 3/29/2023 $ 250.0 Net investment hedge $ — $ 14.9 $ — $ 3.8 EUR - USD 3/29/2023 250.0 Net investment hedge — 15.0 — 3.9 EUR - USD 01/15/2020 155.9 Net investment hedge — — — 1.4 Interest Rate Swaps USD Libor 3/29/2023 300.0 Interest rate hedge - Float to fixed — 7.9 3.5 — Undesignated derivatives Cross Currency Swaps EUR - USD 01/15/2020 265.3 Foreign currency exchange — — — 2.1 EUR - USD 01/15/2020 25.6 Foreign currency exchange — — — 0.2 Total $ 1,246.8 $ — $ 37.8 $ 3.5 $ 11.4 |
Schedule of Derivative Instruments | The following table presents the effect of our derivative financial instruments on our accompanying condensed consolidated financial statements (in millions): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Derivatives in Cash Flow Hedging Relationships Cross-Currency and Interest Rate Swaps: Amount of gain (loss) recognized in OCI for derivatives $ (20.9) $ 15.5 $ (31.5) $ 14.6 Amount of gain (loss) reclassified from accumulated OCI for derivatives $ (0.8) $ 0.2 $ (0.9) $ 0.2 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Summary of Forward Sales of Equity | The following table represents a summary of forward sale of equity of our common stock for the nine-month period ended September 30, 2020 (in millions): Offering Program Forward Shares Sold/(Settled) Net Proceeds Received Remaining Proceeds Available (1) Total as of December 31, 2019 1.6 $ — $ 96.5 March 9, 2020 Forward Offering - Sales 2.0 — 121.2 May 13, 2020 Forward Offering - Sales 1.4 — 97.9 May 26, 2020 Forward Offering - Sales 1.4 — 97.1 May 29, 2020 Forward Offering - Sales 1.4 — 97.2 November 29, 2019 Forward Offering settlement (1.6) 96.5 (96.5) March 9, 2020 Forward Offering settlement (2.0) 121.2 (121.2) May 13, 2020 Forward Offering settlement (1.4) 97.9 (97.9) September 15, 2020 Forward Offering - Sales 1.4 — 103.1 September 30, 2020 Forward Offering - Sales 1.6 — 115.6 Total as of September 30, 2020 5.8 $ 315.6 $ 413.0 (1) As of September 30, 2020, the total estimated proceeds, net of adjustments for (i) a floating interest rate factor equal to a specified daily rate less a spread, (ii) the forward purchasers’ stock borrowing costs and (iii) scheduled dividends adjustments is $413.0 million subject to further adjustment when the forward offerings are settled as described above. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock and Restricted Stock Units Activity | The following tables summarize the unvested restricted stock units, restricted stock and stock options activity and the weighted average fair value of these shares at the date of grant for the nine months ended September 30, 2020 and 2019 (performance-based awards are reflected at the target amount of the grant): Restricted Stock Units ("RSU") 2020 2019 Restricted Stock Units Weighted Average Grant Date Fair Value Restricted Stock Units Weighted Average Grant Date Fair Value Outstanding January 1, 646,619 $ 55.80 511,409 $ 56.23 Granted 220,176 97.49 397,631 48.70 TSR and other adjustments (a) 164,071 91.32 — — Exercised (371,186) 81.23 (135,619) 46.09 Forfeited (155,466) 58.68 (77,763) 53.01 Outstanding September 30, 504,214 $ 67.87 695,658 $ 54.26 Time-based RSUs outstanding 230,951 $ 60.32 341,773 $ 53.42 Performance-based RSUs outstanding 273,263 $ 74.24 353,885 $ 55.08 (a) TSR adjustments represent the incremental shares earned for the total stockholder return (TSR) performance metric exceeding target and resulting in 200% payout for the 2017 LTIP Performance Awards. Restricted Stock ("RS") 2020 2019 Restricted Stock Weighted Average Grant Date Fair Value Restricted Stock Weighted Average Grant Date Fair Value Outstanding January 1, 16,681 $ 52.46 419,356 $ 35.73 Granted 100,649 74.64 16,681 52.46 Exercised (16,681) 52.46 (370,554) 35.38 Forfeited — — (34,603) 37.09 Outstanding September 30, 100,649 $ 74.64 30,880 $ 47.39 Time-based RSs outstanding 100,649 $ 74.64 30,880 $ 47.39 Performance-based RSs outstanding — $ — — $ — |
Schedule of Stock Option Activity | Stock Options 2020 2019 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Outstanding January 1, 375,086 $ 31.64 401,223 $ 31.96 Granted — — — — Exercised (277,285) 31.92 (25,586) 36.70 Forfeited — — (551) 23.58 Outstanding September 30, 97,801 $ 30.87 375,086 $ 31.64 Time-based stock options outstanding 80,871 $ 32.40 323,101 $ 32.94 Performance-based stock options outstanding 16,930 $ 23.58 51,985 $ 23.58 |
Income (Loss) per Share (Tables
Income (Loss) per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income (Loss) per Share | The following table reflects the computation of basic and diluted Net income (loss) per share for the three and nine months ended September 30, 2020 and 2019: IN MILLIONS, except per share amounts Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Basic Diluted Basic Diluted Basic Diluted Basic Diluted Numerator: Net (loss) income $ (37.3) $ (37.3) $ 12.6 $ 12.6 $ 22.4 $ 22.4 $ 93.5 $ 93.5 Less: Restricted stock dividends (0.1) (0.1) (0.2) (0.2) (0.4) (0.4) (0.5) (0.5) Net income available to stockholders $ (37.4) $ (37.4) $ 12.4 $ 12.4 $ 22.0 $ 22.0 $ 93.0 $ 93.0 Denominator: Weighted average common outstanding - basic 118.7 118.7 113.1 113.1 116.3 116.3 111.5 111.5 Performance-based restricted stock and units — 0.4 0.4 0.4 Weighted average shares outstanding - diluted 118.7 113.5 116.7 111.9 EPS: (Loss) income per share - basic $ (0.32) $ 0.11 $ 0.19 $ 0.83 Effect of dilutive shares: (Loss) income per share - diluted $ (0.32) $ 0.11 $ 0.19 $ 0.83 |
Description of Business (Detail
Description of Business (Details) | 9 Months Ended |
Sep. 30, 2020data_center | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of data operating centers | 53 |
Number of data recovery centers | 2 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Impairment losses | $ 8.8 | $ 0.7 | $ 11.2 | $ 0.7 |
Contract assets | 0.2 | 0.2 | ||
Atlanta | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Impairment losses | 2.4 | |||
South Bend - Monroe | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Impairment losses | $ 0.7 | $ 0.7 | ||
U.S. Data Centers | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Impairment losses | $ 8.8 | $ 8.8 | ||
Minimum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Management service contracts, term | 1 year | |||
Maximum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Management service contracts, term | 5 years |
Revenue Recognition - Minimum L
Revenue Recognition - Minimum Lease Payments to be Received (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Revenue from Contract with Customer [Abstract] | ||
2020 | $ 198.9 | $ 188.2 |
2021 | 721.9 | 708 |
2022 | 614.5 | 603.2 |
2023 | 493.7 | 508.8 |
2024 | 377.7 | 413.5 |
2025 | 307.8 | 319.3 |
Thereafter | 837.3 | 957.4 |
Total | $ 3,551.8 | $ 3,698.4 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | $ 262.8 | $ 250.9 | $ 765.1 | $ 727.4 |
Total lease revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 257.1 | 243.5 | 740.5 | 689.5 |
Colocation (Minimum lease payments) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 212.5 | 202.4 | 624 | 588.2 |
Metered power reimbursements (Variable lease payments) | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 44.6 | 41.1 | 116.5 | 101.3 |
Total revenue from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 5.7 | 7.4 | 24.6 | 37.9 |
Equipment sales and services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0.6 | 2.4 | 10 | 23.4 |
Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | $ 5.1 | $ 5 | $ 14.6 | $ 14.5 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Revenue from contract with customer | $ 262.8 | $ 250.9 | $ 765.1 | $ 727.4 | |
Accounts receivable | 3 | $ 3 | $ 6.4 | ||
Revenue | Customer Concentration Risk | One Customer | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Concentration risk, percentage | 19.00% | 22.00% | |||
Contracts With Customers | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Revenue from contract with customer | 4 | $ 4.1 | $ 11.9 | $ 11.8 | |
Non-US | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Revenue from contract with customer | $ 0.2 | $ 4.4 |
Leases - As a Lessee - Addition
Leases - As a Lessee - Additional Information (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2020USD ($)facility | Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Number of facilities, finance lease | 5 | |
Operating lease liabilities | $ | $ 244.3 | $ 195.8 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease, remaining term of contract | 1 year | |
Operating lease, term of contract | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease, remaining term of contract | 20 years | |
Operating lease, term of contract | 24 years | |
Data Center | ||
Lessee, Lease, Description [Line Items] | ||
Number of facilities, operating lease | 13 | |
Office | ||
Lessee, Lease, Description [Line Items] | ||
Number of facilities, operating lease | 4 | |
Dublin, Ireland | Ground Lease For Future Development | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease, term of contract | 999 years |
Leases - As a Lessee - Lease Co
Leases - As a Lessee - Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease cost | $ 5.1 | $ 5 | $ 15 | $ 14.6 |
Amortization of assets | 0.7 | 0.4 | 1.5 | 1.5 |
Interest on lease liabilities | 0.4 | 0.4 | 1.1 | 1.3 |
Total net lease cost | $ 6.2 | $ 5.8 | $ 17.6 | $ 17.4 |
Leases - As a Lessee - Suppleme
Leases - As a Lessee - Supplemental Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Operating leases: | ||
Operating lease right-of-use assets, net | $ 206.9 | $ 161.9 |
Operating lease liabilities | 244.3 | 195.8 |
Finance leases: | ||
Property and equipment, at cost | 33 | 34.9 |
Accumulated amortization | (6.4) | (5) |
Property and equipment, net | 26.6 | 29.9 |
Finance lease liabilities | $ 29.2 | $ 31.8 |
Weighted average remaining lease term (in years): | ||
Operating leases | 14 years 4 months 24 days | 15 years 9 months 18 days |
Finance leases | 18 years 1 month 6 days | 18 years 1 month 6 days |
Weighted average discount rate: | ||
Operating leases | 3.80% | 3.90% |
Finance leases | 4.80% | 4.90% |
Leases - As a Lessee - Supple_2
Leases - As a Lessee - Supplemental Cash Flow (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 16.7 | $ 16.7 |
Operating cash flows from finance leases | 1.3 | |
Financing cash flows from finance leases | 2 | 2.1 |
Non-cash right-of-use assets obtained in exchange for lease liabilities: | ||
Operating leases | 56.9 | 101.4 |
Finance leases | $ 0 | $ 0.8 |
Leases - As a Lessee - Maturiti
Leases - As a Lessee - Maturities of Operating and Financing Lease Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Operating Leases | ||
2020 | $ 6.3 | |
2021 | 25.7 | $ 22.4 |
2022 | 27.2 | 21 |
2023 | 23.4 | 22.4 |
2024 | 19 | 18.5 |
2025 | 17.3 | 13.9 |
Thereafter | 213.6 | 165.4 |
Total lease payments | 332.5 | 263.6 |
Less: Imputed interest | (88.2) | (67.8) |
Operating lease liabilities | 244.3 | 195.8 |
Finance Leases | ||
2020 | 1.8 | |
2021 | 4 | 5 |
2022 | 2.9 | 4.1 |
2023 | 1.8 | 2.9 |
2024 | 1.5 | 1.9 |
2025 | 1.6 | 1.4 |
Thereafter | 28.8 | 31.1 |
Total lease payments | 42.4 | 46.4 |
Less: Imputed interest | (13.2) | (14.6) |
Finance lease liabilities | $ 29.2 | $ 31.8 |
Investment in Real Estate - Lan
Investment in Real Estate - Land for Future Development (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($)a | Sep. 30, 2019USD ($)a | Sep. 30, 2020USD ($)a | Sep. 30, 2019USD ($)a | |
Business Acquisition [Line Items] | ||||
Depreciation expense | $ 99.7 | $ 92.1 | $ 291.2 | $ 269.9 |
Amortization expense | $ 13.4 | $ 13.3 | $ 39.7 | $ 39.7 |
Frankfurt, Germany | ||||
Business Acquisition [Line Items] | ||||
Area of Land | a | 35 | 35 | ||
San Antonio, Santa Clara and Dublin | ||||
Business Acquisition [Line Items] | ||||
Area of Land | a | 54 | 54 | ||
Land | Frankfurt, Germany | ||||
Business Acquisition [Line Items] | ||||
Payment to acquire land | $ 58.7 | |||
Land | San Antonio, Santa Clara and Dublin | ||||
Business Acquisition [Line Items] | ||||
Payment to acquire land | $ 51.8 |
Investment in Real Estate - Rea
Investment in Real Estate - Real Estate Investments and Intangibles and Related Depreciation and Amortization (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Investment in real estate | ||
Buildings and improvements, cost | $ 1,918.4 | $ 1,761.4 |
Equipment, cost | 3,341.7 | 3,028.2 |
Buildings and improvements, accumulated depreciation | (613.6) | (545.1) |
Equipment, accumulated depreciation | (1,049.8) | (834.1) |
Buildings and improvements, net | 1,304.8 | 1,216.3 |
Equipment, net | 2,291.9 | 2,194.1 |
Intangible assets | ||
Cost | 403.5 | 403.6 |
Accumulated Depreciation and Amortization | (237.1) | (207.5) |
Net book value | 166.4 | 196.1 |
Customer relationships | ||
Intangible assets | ||
Cost | 247.1 | 247.1 |
Accumulated Depreciation and Amortization | (160.1) | (151.1) |
Net book value | 87 | 96 |
In-place leases | ||
Intangible assets | ||
Cost | 137 | 137.1 |
Accumulated Depreciation and Amortization | (66) | (46.7) |
Net book value | 71 | 90.4 |
Other contractual | ||
Intangible assets | ||
Cost | 19.4 | 19.4 |
Accumulated Depreciation and Amortization | (11) | (9.7) |
Net book value | $ 8.4 | $ 9.7 |
Buildings | ||
Intangible assets | ||
Useful life of asset | 30 years | |
Building improvements | ||
Intangible assets | ||
Useful life of asset | 30 years | |
Equipment | ||
Intangible assets | ||
Useful life of asset | 20 years |
Equity Investments - Shcedule o
Equity Investments - Shcedule of Investees (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Equity investments | $ 178.1 | $ 135.1 |
GDS, Class A share equivalent | ||
Schedule of Equity Method Investments [Line Items] | ||
Fair value | 155.2 | 118.7 |
ODATA investments | ||
Schedule of Equity Method Investments [Line Items] | ||
Cost method | $ 22.9 | $ 16.4 |
Equity Investments - Narrative
Equity Investments - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||||
Net gain on marketable equity investments | $ 4.7 | $ 12.4 | $ 69.8 | $ 105.1 | |
Less: Net gain recognized on marketable equity investments sold | 0.6 | 0 | 12.4 | 66.9 | |
Unrealized gain on marketable equity investments held | 4.1 | $ 12.4 | $ 57.4 | $ 38.2 | |
GDS | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Price per ordinary share (in dollars per share) | $ 81.83 | ||||
Equity method investment, share equivalent (shares) | 1,900 | ||||
Equity investments | $ 155.2 | $ 155.2 | $ 118.7 | ||
Number of GDS ADSs sold (in shares) | 405 | 5,700 | |||
Proceeds from sale of equity investments | $ 33.3 | $ 200 | |||
Affiliated Entity | ODATA | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Cost method investments | $ 16.4 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deferred leasing and other contract costs | $ 58.7 | $ 53.2 |
Prepaid expenses | 20.6 | 22.1 |
Non-real estate assets, net | 14.5 | 16.3 |
Derivative assets | 0 | 3.5 |
Other assets | 19 | 18.8 |
Total | $ 112.8 | $ 113.9 |
Debt - Components of Debt (Deta
Debt - Components of Debt (Details) € in Millions | 9 Months Ended | |||||||
Sep. 30, 2020USD ($)extension | Sep. 30, 2020EUR (€) | Sep. 21, 2020 | Jun. 30, 2020USD ($) | Jan. 22, 2020 | Dec. 31, 2019USD ($) | Dec. 05, 2019 | Mar. 29, 2018USD ($) | |
Debt Instrument [Line Items] | ||||||||
Deferred financing costs | $ (30,700,000) | $ (25,800,000) | ||||||
Total | $ 3,197,800,000 | 2,886,600,000 | ||||||
LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 0.15% | 0.15% | ||||||
GPB LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 0.05% | 0.05% | ||||||
Term Loan | 2023 Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility | $ 0 | 800,000,000 | ||||||
Credit agreement amount | $ 1,000,000,000 | |||||||
Term Loan | 2025 Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility | $ 0 | 300,000,000 | ||||||
Credit agreement amount | 300,000,000 | |||||||
Term Loan | LIBOR | 2023 Term Loan Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.20% | |||||||
Term Loan | LIBOR | 2025 Term Loan Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.20% | |||||||
Term Loan | LIBOR | 2023 Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.35% | |||||||
Term Loan | LIBOR | 2025 Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.65% | |||||||
Senior Notes | 2024 Notes, including bond discount of $0.7 million | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 599,300,000 | 599,200,000 | ||||||
Stated interest rate | 2.90% | 2.90% | 2.90% | |||||
Bond discount (premium) | $ 700,000 | |||||||
Senior Notes | 2029 Notes, including bond discount of $1.6 million | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 598,400,000 | 598,200,000 | ||||||
Stated interest rate | 3.45% | 3.45% | 3.45% | |||||
Bond discount (premium) | $ 1,600,000 | |||||||
Senior Notes | 2027 Notes, including bond discount of $0.7 million | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 585,500,000 | 0 | ||||||
Stated interest rate | 1.45% | 1.45% | 1.45% | |||||
Bond discount (premium) | $ 700,000 | € 0.6 | ||||||
Senior Notes | 2030 Notes, including bond discount of $4.8 million | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 2.15% | 2.15% | 2.15% | |||||
Bond discount (premium) | $ 4,800,000 | |||||||
Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Term of extension option | 1 year | |||||||
Revolving Credit Facility | 1.4 Billion Senior Multi Currency Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of extension options | extension | 1 | |||||||
Term of extension option | 12 months | |||||||
Credit agreement amount | $ 1,400,000,000 | |||||||
Revolving Credit Facility | 1.4 Billion EUR Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility | 140,700,000 | |||||||
Revolving Credit Facility | 1.4 Billion GBP Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility | $ 109,400,000 | |||||||
Revolving Credit Facility | 2023 Term Loan Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of extension options | extension | 2 | |||||||
Term of extension option | 1 year | |||||||
Credit agreement amount | $ 400,000,000 | |||||||
Revolving Credit Facility | 2025 Term Loan Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit agreement amount | 700,000,000 | |||||||
Revolving Credit Facility | $3 Billion Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility | $ 1,300,000,000 | |||||||
Credit agreement amount | 3,000,000,000 | |||||||
Revolving Credit Facility | $1.7 Billion Revolving Credit Facility: | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility | 250,100,000 | |||||||
Credit agreement amount | $ 1,700,000,000 | |||||||
Revolving Credit Facility | US Revolver | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility | 0 | 555,000,000 | ||||||
Revolving Credit Facility | EUR Revolver | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility | 0 | 33,600,000 | ||||||
Revolving Credit Facility | GBP Revolver | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility | $ 0 | $ 26,400,000 | ||||||
Revolving Credit Facility | LIBOR | US Revolver | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.20% | |||||||
Revolving Credit Facility | EURIBOR | 1.4 Billion EUR Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.00% | |||||||
Revolving Credit Facility | EURIBOR | EUR Revolver | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.20% | |||||||
Revolving Credit Facility | GPB LIBOR | 1.4 Billion GBP Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.00% | |||||||
Revolving Credit Facility | GPB LIBOR | GBP Revolver | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.20% |
Debt - Credit Facilities (Detai
Debt - Credit Facilities (Details) | Mar. 31, 2020USD ($) | Mar. 29, 2018USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2020USD ($)extension | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) |
Line of Credit Facility [Line Items] | ||||||||
Gain (loss) on early extinguishment of debt | $ (3,100,000) | $ 0 | $ (6,500,000) | $ 0 | ||||
Letters of credit outstanding | 10,800,000 | $ 10,800,000 | ||||||
Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Option to extend maturity | 1 year | |||||||
$3 Billion Credit Facility | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit agreement amount | $ 3,000,000,000 | |||||||
Repayments of long-term debt | $ 1,300,000,000 | |||||||
Line of credit | $ 1,300,000,000 | |||||||
Gain (loss) on early extinguishment of debt | $ (3,400,000) | |||||||
Available capacity | 1,100,000,000 | $ 1,100,000,000 | ||||||
$1.7 Billion Revolving Credit Facility: | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit agreement amount | 1,700,000,000 | |||||||
Multicurrency borrowing sublimit | $ 750,000,000 | |||||||
Line of credit | 250,100,000 | $ 250,100,000 | ||||||
Commitment fee percent | 0.25% | |||||||
Commitment fee rate per annum upon 50% or greater utilization | 0.25% | |||||||
Commitment fee amount | 600,000 | $ 500,000 | $ 2,400,000 | $ 1,500,000 | ||||
2023 Term Loan | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt instrument, term | 5 years | |||||||
2023 Term Loan | Term Loan | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit agreement amount | $ 1,000,000,000 | |||||||
Line of credit | 0 | 0 | $ 800,000,000 | |||||
2025 Term Loan | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt instrument, term | 7 years | |||||||
2025 Term Loan | Term Loan | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit agreement amount | $ 300,000,000 | |||||||
Line of credit | 0 | 0 | $ 300,000,000 | |||||
1.4 Billion Senior Multi Currency Revolving Credit Facility | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit agreement amount | 1,400,000,000 | 1,400,000,000 | ||||||
Additional maximum borrowing capacity | 4,000,000,000 | 4,000,000,000 | ||||||
Multicurrency borrowing sublimit | 750,000,000 | $ 750,000,000 | ||||||
Number of extension options | extension | 1 | |||||||
Option to extend maturity | 12 months | |||||||
2023 Term Loan Facility | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit agreement amount | 400,000,000 | $ 400,000,000 | ||||||
Number of extension options | extension | 2 | |||||||
Option to extend maturity | 1 year | |||||||
2025 Term Loan Facility | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit agreement amount | $ 700,000,000 | $ 700,000,000 |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) | Sep. 21, 2020USD ($) | Jan. 22, 2020EUR (€) | Dec. 05, 2019USD ($) | Sep. 30, 2020 |
1.4 Billion US Revolving Credit Facility | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Repayments of debt | $ 20,000,000 | |||
Senior Notes | 1.450% Senior Notes due 2027 | ||||
Debt Instrument [Line Items] | ||||
Debt principal amount | € | € 500,000,000 | |||
Stated interest rate | 1.45% | 1.45% | ||
Proceeds from debt issuance, net of underwriting and other deferred financing cost | € | € 495,300,000 | |||
Senior Notes | 2.900% Senior Notes Due 2024 | ||||
Debt Instrument [Line Items] | ||||
Debt principal amount | $ 600,000,000 | |||
Stated interest rate | 2.90% | 2.90% | ||
Senior Notes | 3.450% Senior Notes Due 2029 | ||||
Debt Instrument [Line Items] | ||||
Debt principal amount | $ 600,000,000 | |||
Stated interest rate | 3.45% | 3.45% | ||
Senior Notes | 5.000% Senior Notes Due 2024 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 5.00% | |||
Senior Notes | 5.375% Senior Notes Due 2027 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 5.375% | |||
Senior Notes | 2.900% Senior Notes Due 2024 And 3.450% Senior Notes Due 2029 | ||||
Debt Instrument [Line Items] | ||||
Proceeds from debt issuance, net of underwriting and other deferred financing cost | $ 1,197,400,000 | |||
Senior Notes | 5.000% senior notes due 2024 and 5.375% senior notes due 2027 | ||||
Debt Instrument [Line Items] | ||||
Loss on early extinguishment of debt | $ 71,800,000 | |||
Senior Notes | 2.150% Senior Notes due 2030 | ||||
Debt Instrument [Line Items] | ||||
Debt principal amount | $ 400,000,000 | |||
Stated interest rate | 2.15% | 2.15% | ||
Proceeds from debt issuance, net of underwriting and other deferred financing cost | $ 392,600,000 | |||
Term Loan | 2023 Term Loan | ||||
Debt Instrument [Line Items] | ||||
Loss on early extinguishment of debt | 3,100,000 | |||
Repayments of debt | $ 300,000,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments and Hedging Activities - Carrying Value and Fair Value of Other Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 21, 2020 | Jan. 22, 2020 | Dec. 31, 2019 | Dec. 05, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Liability | $ 37.8 | $ 11.4 | |||
Derivative assets | 0 | 3.5 | |||
Carrying Value | Currency Swap | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Liability | 0 | 0 | |||
Carrying Value | Interest Rate Swaps | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Liability | 0 | 0 | |||
Derivative assets | 0 | 0 | |||
Carrying Value | Revolving Credit Facility | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt | 250.1 | 615 | |||
Fair Value | Currency Swap | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Liability | 29.9 | 11.4 | |||
Fair Value | Interest Rate Swaps | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Liability | 7.9 | 0 | |||
Derivative assets | 0 | 3.5 | |||
Fair Value | Revolving Credit Facility | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt | 250.1 | 615 | |||
2023 Term Loan Facility | Carrying Value | Revolving Credit Facility | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Credit facility | 100 | 0 | |||
2023 Term Loan Facility | Fair Value | Revolving Credit Facility | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Credit facility | 100 | 0 | |||
2025 Term Loan Facility | Carrying Value | Revolving Credit Facility | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Credit facility | 700 | 0 | |||
2025 Term Loan Facility | Fair Value | Revolving Credit Facility | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Credit facility | 700 | 0 | |||
Senior Notes | 2.900% Senior Notes Due 2024 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt | $ 599.3 | 599.2 | |||
Stated interest rate | 2.90% | 2.90% | |||
Senior Notes | 2.900% Senior Notes Due 2024 | Carrying Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt | $ 599.3 | 599.2 | |||
Senior Notes | 3.450% Senior Notes Due 2029 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt | $ 598.4 | 598.2 | |||
Stated interest rate | 3.45% | 3.45% | |||
Senior Notes | 3.450% Senior Notes Due 2029 | Carrying Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt | $ 598.4 | 598.2 | |||
Senior Notes | 1.450% Senior Notes due 2027 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt | $ 585.5 | 0 | |||
Stated interest rate | 1.45% | 1.45% | |||
Senior Notes | 1.450% Senior Notes due 2027 | Carrying Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt | $ 585.5 | 0 | |||
Senior Notes | 2.150% Senior Notes due 2030 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Stated interest rate | 2.15% | 2.15% | |||
Senior Notes | 2.150% Senior Notes due 2030 | Carrying Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt | $ 395.2 | 0 | |||
Level 1 | Senior Notes | 2.900% Senior Notes Due 2024 | Fair Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt | 638.3 | 602.1 | |||
Level 1 | Senior Notes | 3.450% Senior Notes Due 2029 | Fair Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt | 652.2 | 603.1 | |||
Level 1 | Senior Notes | 1.450% Senior Notes due 2027 | Fair Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt | 556.7 | 0 | |||
Level 1 | Senior Notes | 2.150% Senior Notes due 2030 | Fair Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt | 391.3 | 0 | |||
GDS | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Equity investments | 155.2 | 118.7 | |||
GDS | Carrying Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Equity investments | 155.2 | 118.7 | |||
GDS | Level 2 | Fair Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Equity investments | $ 155.2 | $ 118.7 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments and Hedging Activities - Derivative Positions (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | $ 1,246.8 | |
Asset | 0 | $ 3.5 |
Liability | 37.8 | 11.4 |
3/29/2023 | Net investment hedge | Cross Currency Swaps | Designated derivatives | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 250 | |
Asset | 0 | 0 |
Liability | 14.9 | 3.8 |
3/29/2023 | Net investment hedge | Cross Currency Swaps | Designated derivatives | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 250 | |
Asset | 0 | 0 |
Liability | 15 | 3.9 |
01/15/2020 | Net investment hedge | Cross Currency Swaps | Designated derivatives | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 155.9 | |
Asset | 0 | 0 |
Liability | 0 | 1.4 |
3/29/2023 | Interest rate hedge - Float to fixed | Interest Rate Swaps | Designated derivatives | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 300 | |
Asset | 0 | 3.5 |
Liability | 7.9 | 0 |
01/15/2020 | Cross Currency Swaps | Undesignated derivatives | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 265.3 | |
Asset | 0 | 0 |
Liability | 0 | 2.1 |
01/15/2020 | Cross Currency Swaps | Undesignated derivatives | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 25.6 | |
Asset | 0 | 0 |
Liability | $ 0 | $ 0.2 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments and Hedging Activities - Derivative instruments (Details) € in Millions, $ in Millions | Sep. 21, 2020USD ($) | Sep. 30, 2020USD ($)instrument | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2020USD ($)instrument | Sep. 30, 2019USD ($) | Sep. 30, 2020EUR (€)instrument | Dec. 31, 2019USD ($) | Sep. 03, 2019USD ($) |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||
Derivative liability | $ 37.8 | $ 37.8 | $ 11.4 | |||||||||
Amount of gain (loss) recognized in OCI for derivatives | (20.9) | $ (9.5) | $ (1.1) | $ 15.5 | $ (3.6) | $ 2.7 | (31.5) | $ 14.6 | ||||
Derivative asset | 0 | 0 | 3.5 | |||||||||
Cross Currency Swaps | ||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||
Amount of gain (loss) recognized in OCI for derivatives | (20.9) | 15.5 | (31.5) | 14.6 | ||||||||
Cross Currency Swaps | Net investment hedge | ||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||
Amount of gain (loss) recognized in OCI for derivatives | (21.8) | (20.1) | ||||||||||
Term Loan | 2023 Term Loan Facility | ||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||
Repayments of debt | $ 300 | |||||||||||
Term Loan | Interest Rate Swaps | ||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||
Derivative liability, notional amount | $ 300 | |||||||||||
Amount of gain (loss) recognized in OCI for derivatives | $ 0.9 | $ (11.4) | ||||||||||
Derivative, fixed interest rate | 1.19% | |||||||||||
Maturing March 2023 | Cross Currency Swaps | ||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||
Number of derivative instruments | instrument | 2 | 2 | 2 | |||||||||
Derivative asset, notional amount | $ 500 | $ 500 | ||||||||||
Derivative liability, notional amount | € | € 450.7 | |||||||||||
Amount of gain recognized in earnings | $ 5.8 | 4.5 | $ 5.8 | |||||||||
Other Assets | ||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||
Derivative asset | 0 | 0 | ||||||||||
Other Assets | Interest Rate Swaps | ||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||
Derivative asset | 3.5 | 3.5 | ||||||||||
Other Liabilities | Cross Currency Swaps | ||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||
Derivative liability | 29.9 | 29.9 | $ 11.4 | |||||||||
Other Liabilities | Interest Rate Swaps | ||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||
Derivative liability | $ 7.9 | $ 7.9 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments and Hedging Activities - Derivative Instruments Gain (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of gain (loss) recognized in OCI for derivatives | $ (20.9) | $ (9.5) | $ (1.1) | $ 15.5 | $ (3.6) | $ 2.7 | $ (31.5) | $ 14.6 |
Cross Currency Swaps | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Amount of gain (loss) recognized in OCI for derivatives | (20.9) | 15.5 | (31.5) | 14.6 | ||||
Amount of gain (loss) reclassified from accumulated OCI for derivatives | $ (0.8) | $ 0.2 | $ (0.9) | $ 0.2 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) | Sep. 30, 2020 | Sep. 15, 2020 | Jul. 29, 2020 | May 29, 2020 | May 26, 2020 | May 13, 2020 | Mar. 09, 2020 | Jun. 30, 2020 | Nov. 30, 2019 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Proceeds from sale of common stock | $ 325,900,000 | $ 253,300,000 | |||||||||||||||||
Common stock outstanding (in shares) | 120,422,556 | 120,422,556 | 120,422,556 | 114,808,898 | |||||||||||||||
Dividends paid per share (in dollars per share) | $ 1.51 | $ 1.42 | |||||||||||||||||
Payments of dividends | $ 174,700,000 | $ 153,500,000 | |||||||||||||||||
Dividends declared per share (in dollars per share) | $ 0.51 | $ 0.51 | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.46 | $ 0.46 | ||||||||||||
New 2018 ATM Stock Offering Program | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Value of shares authorized | $ 750,000,000 | ||||||||||||||||||
Proceeds from sale of common stock | $ 252,200,000 | ||||||||||||||||||
Issuance of common stock (in shares) | 4,900,000 | ||||||||||||||||||
Stock issued during period, average price per share (in dollars per share) | $ 52.22 | $ 52.22 | |||||||||||||||||
2020 ATM Stock Offering Program | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Value of shares authorized | $ 750,000,000 | $ 750,000,000 | 750,000,000 | ||||||||||||||||
Value of shares available to grant | $ 227,600,000 | $ 227,600,000 | $ 227,600,000 | ||||||||||||||||
Forward Sale Agreement | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Forward offering sales (in shares) | 1,600,000 | 1,400,000 | 1,400,000 | 1,400,000 | 1,400,000 | 2,000,000 | |||||||||||||
Sale of stock, number of shares (in shares) | 5,800,000 | 5,800,000 | 5,800,000 | 1,600,000 | |||||||||||||||
Proceeds from sale of common stock | $ 219,100,000 | ||||||||||||||||||
Issuance of common stock (in shares) | 3,400,000 | ||||||||||||||||||
Initial forward price (in dollars per share) | $ 69.19 | $ 69.19 | $ 69.19 | ||||||||||||||||
Proceeds from settlement of forward equity sale agreement | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||||||||||
Forward Sale Agreement | New 2018 ATM Stock Offering Program | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Forward offering sales (in shares) | 1,600,000 | ||||||||||||||||||
Initial forward price (in dollars per share) | $ 61.67 | ||||||||||||||||||
Proceeds from settlement of forward equity sale agreement | $ 96,500,000 | ||||||||||||||||||
Forward Sale Agreement | New 2018 ATM Stock Offering Program And 2020 ATM Stock Offering | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Sale of stock, number of shares (in shares) | 9,100,000 | 9,100,000 | 9,100,000 | ||||||||||||||||
Forward Offering Settlement | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||
Initial forward price (in dollars per share) | $ 63.61 | $ 63.61 | $ 63.61 | ||||||||||||||||
Proceeds from settlement of forward equity sale agreement | $ 315,600,000 | ||||||||||||||||||
Forward offering settlement (in shares) | 5,000,000 |
Stockholders' Equity - Forward
Stockholders' Equity - Forward Sale of Equity (Details) - Forward Sale Agreement - USD ($) shares in Millions, $ in Millions | Sep. 30, 2020 | Sep. 15, 2020 | May 29, 2020 | May 26, 2020 | May 13, 2020 | Mar. 09, 2020 | Sep. 30, 2020 |
Forward Sale Of Equity Of Common Stock [Roll Forward] | |||||||
Beginning balance (in shares) | 1.6 | ||||||
Forward offering sales (in shares) | 1.6 | 1.4 | 1.4 | 1.4 | 1.4 | 2 | |
Ending balance (in shares) | 5.8 | 5.8 | |||||
Forward Sales Of Equity Of Common Stock, Net Proceeds Received [Roll Forward] | |||||||
Net proceeds received, beginning balance | $ 0 | ||||||
Proceeds from settlement of forward equity sale agreement | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |
Net proceeds received, ending balance | 315.6 | 315.6 | |||||
Forward Sales Of Equity Of Common Stock, Remaining Expected Proceeds Available [Roll Forward] | |||||||
Remaining proceeds available, beginning balance | 96.5 | ||||||
Remaining proceeds available, additions | 115.6 | $ 103.1 | $ 97.2 | $ 97.1 | $ 97.9 | $ 121.2 | |
Remaining proceeds available, ending balance | 413 | 413 | |||||
Estimated proceeds, net of adjustments | $ 413 | $ 413 | |||||
November 29, 2019 Forward Offering settlement | |||||||
Forward Sale Of Equity Of Common Stock [Roll Forward] | |||||||
Forward offering settlement (in shares) | (1.6) | ||||||
Forward Sales Of Equity Of Common Stock, Net Proceeds Received [Roll Forward] | |||||||
Proceeds from settlement of forward equity sale agreement | $ 96.5 | ||||||
Forward Sales Of Equity Of Common Stock, Remaining Expected Proceeds Available [Roll Forward] | |||||||
Remaining proceeds available, settlements | $ (96.5) | ||||||
March 9, 2020 Forward Offering settlement | |||||||
Forward Sale Of Equity Of Common Stock [Roll Forward] | |||||||
Forward offering settlement (in shares) | (2) | ||||||
Forward Sales Of Equity Of Common Stock, Net Proceeds Received [Roll Forward] | |||||||
Proceeds from settlement of forward equity sale agreement | $ 121.2 | ||||||
Forward Sales Of Equity Of Common Stock, Remaining Expected Proceeds Available [Roll Forward] | |||||||
Remaining proceeds available, settlements | $ (121.2) | ||||||
May 13, 2020 Forward Offering settlement | |||||||
Forward Sale Of Equity Of Common Stock [Roll Forward] | |||||||
Forward offering settlement (in shares) | (1.4) | ||||||
Forward Sales Of Equity Of Common Stock, Net Proceeds Received [Roll Forward] | |||||||
Proceeds from settlement of forward equity sale agreement | $ 97.9 | ||||||
Forward Sales Of Equity Of Common Stock, Remaining Expected Proceeds Available [Roll Forward] | |||||||
Remaining proceeds available, settlements | $ (97.9) |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 6.7 | $ 4.3 | $ 13.7 | $ 12.4 |
LTIP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized (in shares) | 8,900,000 | 8,900,000 | ||
Shares available for grant (in shares) | 4,300,000 | 4,300,000 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Awards Activity (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
TSR performance metric, payout percent | 200.00% | |
Shares | ||
Non-vested beginning balance (in shares) | 646,619 | 511,409 |
Granted (in shares) | 220,176 | 397,631 |
TSR and other adjustments (in shares) | 164,071 | 0 |
Exercised (in shares) | (371,186) | (135,619) |
Forfeited (in shares) | (155,466) | (77,763) |
Non-vested ending balance (in shares) | 504,214 | 695,658 |
Weighted Average Grant Date Fair Value | ||
Non-vested beginning balance (in dollars per share) | $ 55.80 | $ 56.23 |
Granted (in dollars per share) | 97.49 | 48.70 |
TSR and other adjustments (in dollars per share) | $ 91.32 | $ 0 |
Exercised (in dollars per share) | 81.23 | 46.09 |
Forfeited (in dollars per share) | $ 58.68 | $ 53.01 |
Non-vested ending balance (in dollars per share) | $ 67.87 | $ 54.26 |
Restricted Stock | ||
Shares | ||
Non-vested beginning balance (in shares) | 16,681 | 419,356 |
Granted (in shares) | 100,649 | 16,681 |
Exercised (in shares) | (16,681) | (370,554) |
Forfeited (in shares) | 0 | (34,603) |
Non-vested ending balance (in shares) | 100,649 | 30,880 |
Weighted Average Grant Date Fair Value | ||
Non-vested beginning balance (in dollars per share) | $ 52.46 | $ 35.73 |
Granted (in dollars per share) | $ 74.64 | $ 52.46 |
Exercised (in dollars per share) | 52.46 | 35.38 |
Forfeited (in dollars per share) | $ 0 | $ 37.09 |
Non-vested ending balance (in dollars per share) | $ 74.64 | $ 47.39 |
Restricted Stock Units, Time-Based | ||
Shares | ||
Non-vested ending balance (in shares) | 230,951 | 341,773 |
Weighted Average Grant Date Fair Value | ||
Non-vested ending balance (in dollars per share) | $ 60.32 | $ 53.42 |
Restricted Stock Units, Performance-Based | ||
Shares | ||
Non-vested ending balance (in shares) | 273,263 | 353,885 |
Weighted Average Grant Date Fair Value | ||
Non-vested ending balance (in dollars per share) | $ 74.24 | $ 55.08 |
Restricted Stock, Time-Based | ||
Shares | ||
Non-vested ending balance (in shares) | 100,649 | 30,880 |
Weighted Average Grant Date Fair Value | ||
Non-vested ending balance (in dollars per share) | $ 74.64 | $ 47.39 |
Restricted Stock, Performance-Based | ||
Shares | ||
Non-vested ending balance (in shares) | 0 | 0 |
Weighted Average Grant Date Fair Value | ||
Non-vested ending balance (in dollars per share) | $ 0 | $ 0 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Options | ||
Beginning balance (in shares) | 375,086 | 401,223 |
Granted (in shares) | 0 | 0 |
Exercised (in shares) | (277,285) | (25,586) |
Forfeited or expired (in shares) | 0 | (551) |
Ending balance (in shares) | 97,801 | 375,086 |
Weighted Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 31.64 | $ 31.96 |
Granted (in dollars per share) | 0 | 0 |
Exercised (in dollars per share) | 31.92 | 36.70 |
Forfeited or expired (in dollars per share) | 0 | 23.58 |
Ending balance (in dollars per share) | $ 30.87 | $ 31.64 |
Stock Options, Time Based | ||
Options | ||
Ending balance (in shares) | 80,871 | 323,101 |
Weighted Average Exercise Price | ||
Ending balance (in dollars per share) | $ 32.40 | $ 32.94 |
Stock Options, Performance Based | ||
Options | ||
Ending balance (in shares) | 16,930 | 51,985 |
Weighted Average Exercise Price | ||
Ending balance (in dollars per share) | $ 23.58 | $ 23.58 |
Income (Loss) per Share - Compu
Income (Loss) per Share - Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator: | ||||||||
Net income (loss) | $ (37.3) | $ 45 | $ 14.7 | $ 12.6 | $ (8.5) | $ 89.4 | $ 22.4 | $ 93.5 |
Less: Restricted stock dividends, Basic | (0.1) | (0.2) | (0.4) | (0.5) | ||||
Less: Restricted stock dividends, Diluted | (0.1) | (0.2) | (0.4) | (0.5) | ||||
Net (loss) income available to stockholders, Basic | (37.4) | 12.4 | 22 | 93 | ||||
Net (loss) income available to stockholders, Diluted | $ (37.4) | $ 12.4 | $ 22 | $ 93 | ||||
Denominator: | ||||||||
Weighted average shares outstanding - basic (in shares) | 118.7 | 113.1 | 116.3 | 111.5 | ||||
Performance-based restricted stock and units (in shares) | 0 | 0.4 | 0.4 | 0.4 | ||||
Weighted average shares outstanding- diluted (in shares) | 118.7 | 113.5 | 116.7 | 111.9 | ||||
EPS: | ||||||||
(Loss) income per share - basic (in dollars per share) | $ (0.32) | $ 0.11 | $ 0.19 | $ 0.83 | ||||
Effect of dilutive shares: | ||||||||
(Loss) income per share - diluted (in dollars per share) | $ (0.32) | $ 0.11 | $ 0.19 | $ 0.83 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) ft² in Thousands, £ in Millions, $ in Millions | 9 Months Ended | |
Sep. 30, 2020USD ($)ft² | Sep. 30, 2020GBP (£) | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
Letters of credit outstanding | $ 10.8 | |
Minimum | ||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
Operating lease, term of contract | 1 year | |
Maximum | ||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
Operating lease, term of contract | 24 years | |
Data center facilities and equipment | ||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
Amount of minimum purchase commitment | $ 183.7 | |
Data center facilities and equipment | Minimum | ||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
Term of purchase commitment | 1 year | 1 year |
Data center facilities and equipment | Maximum | ||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
Term of purchase commitment | 2 years | 2 years |
Services | ||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
Amount of minimum purchase commitment | $ 60.2 | |
Services | Minimum | ||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
Term of purchase commitment | 1 year | 1 year |
Services | Maximum | ||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
Term of purchase commitment | 2 years | 2 years |
London, UK | ||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
Operating lease, area | ft² | 70 | |
Annual rent | £ | £ 1.4 | |
Land | London, UK | ||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
Operating lease, term of contract | 20 years |