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IRON MOUNTAIN INC - Quarter Report: 2021 June (Form 10-Q)

Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
(Mark One)
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 2021
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from                        to                       
Commission file number 1-13045
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IRON MOUNTAIN INCORPORATED
(Exact Name of Registrant as Specified in Its Charter)
Delaware23-2588479
(State or other Jurisdiction of Incorporation or Organization)(I.R.S. Employer Identification No.)
One Federal Street, Boston, Massachusetts 02110
(Address of Principal Executive Offices, Including Zip Code)
(617) 535-4766
(Registrant's Telephone Number, Including Area Code)
Securities registered pursuant to Section 12(b) of the Exchange Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $.01 par valueIRMNYSE
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒    No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒    No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer
☒
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐    No ☒
As of July 30, 2021, the registrant had 289,460,314 outstanding shares of common stock, $.01 par value.

Table of Contents

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IRON MOUNTAIN INCORPORATED
2021 FORM 10-Q QUARTERLY REPORT
TABLE OF CONTENTS
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Table of Contents
PART I. FINANCIAL INFORMATION
ITEM 1. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
IRON MOUNTAIN JUNE 30, 2021 FORM 10-Q
1
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) (UNAUDITED)
 JUNE 30, 2021DECEMBER 31, 2020
ASSETS 
Current Assets: 
Cash and cash equivalents$315,928 $205,063 
Accounts receivable (less allowances of $56,977 and $56,981 as of June 30, 2021 and December 31, 2020, respectively)
852,449 859,344 
Prepaid expenses and other222,231 205,380 
Total Current Assets1,390,608 1,269,787 
Property, Plant and Equipment: 
Property, plant and equipment8,319,083 8,246,337 
Less—Accumulated depreciation(3,863,477)(3,743,894)
Property, Plant and Equipment, Net4,455,606 4,502,443 
Other Assets, Net: 
Goodwill4,508,754 4,557,609 
Customer relationships, customer inducements and data center lease-based intangibles1,256,181 1,326,977 
Operating lease right-of-use assets 2,342,197 2,196,502 
Other360,970 295,949 
Total Other Assets, Net8,468,102 8,377,037 
Total Assets$14,314,316 $14,149,267 
LIABILITIES AND EQUITY 
Current Liabilities: 
Current portion of long-term debt$106,274 $193,759 
Accounts payable321,286 359,863 
Accrued expenses and other current liabilities (includes current portion of operating lease liabilities)1,064,397 1,146,288 
Deferred revenue256,245 295,785 
Total Current Liabilities1,748,202 1,995,695 
Long-term Debt, net of current portion8,760,728 8,509,555 
Long-term Operating Lease Liabilities, net of current portion 2,186,625 2,044,598 
Other Long-term Liabilities169,548 204,508 
Deferred Income Taxes236,811 198,377 
Commitments and Contingencies
Redeemable Noncontrolling Interests64,660 59,805 
Equity:  
Preferred stock (par value $0.01; authorized 10,000,000 shares; none issued and outstanding)
— — 
Common stock (par value $0.01; authorized 400,000,000 shares; issued and outstanding 289,458,768 and 288,273,049 shares as of June 30, 2021 and December 31, 2020, respectively)
2,895 2,883 
Additional paid-in capital4,392,396 4,340,078 
(Distributions in excess of earnings) Earnings in excess of distributions(2,988,896)(2,950,339)
Accumulated other comprehensive items, net(258,653)(255,893)
Total Equity1,147,742 1,136,729 
Total Liabilities and Equity$14,314,316 $14,149,267 







The accompanying notes are an integral part of these condensed consolidated financial statements.
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IRON MOUNTAIN JUNE 30, 2021 FORM 10-Q
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
 THREE MONTHS ENDED
JUNE 30,
 20212020
Revenues:  
Storage rental$718,272 $676,956 
Service401,484 305,283 
Total Revenues1,119,756 982,239 
Operating Expenses:
Cost of sales (excluding depreciation and amortization)474,579 406,693 
Selling, general and administrative259,779 241,947 
Depreciation and amortization166,685 163,850 
Acquisition and Integration Costs2,277 — 
Restructuring Charges 39,443 39,298 
(Gain) Loss on disposal/write-down of property, plant and equipment, net (128,935)(1,275)
Total Operating Expenses813,828 850,513 
Operating Income (Loss)305,928 131,726 
Interest Expense, Net (includes Interest Income of $1,127 and $2,567 for the three months ended
June 30, 2021 and 2020, respectively)
105,220 103,456 
Other (Income) Expense, Net(186,230)25,700 
Net Income (Loss) Before Provision (Benefit) for Income Taxes386,938 2,570 
Provision (Benefit) for Income Taxes110,416 9,683 
Net Income (Loss)276,522 (7,113)
Less: Net Income (Loss) Attributable to Noncontrolling Interests1,237 (27)
Net Income (Loss) Attributable to Iron Mountain Incorporated$275,285 $(7,086)
Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated:  
Basic$0.95 $(0.02)
Diluted$0.95 $(0.02)
Weighted Average Common Shares Outstanding—Basic289,247 288,071 
Weighted Average Common Shares Outstanding—Diluted291,079 288,071 


















The accompanying notes are an integral part of these condensed consolidated financial statements.
IRON MOUNTAIN JUNE 30, 2021 FORM 10-Q
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Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
 SIX MONTHS ENDED
 JUNE 30,
 20212020
Revenues:  
Storage rental$1,426,328 $1,360,503 
Service775,468 690,467 
Total Revenues2,201,796 2,050,970 
Operating Expenses:
Cost of sales (excluding depreciation and amortization)926,488 873,614 
Selling, general and administrative518,502 480,680 
Depreciation and amortization332,327 326,434 
Acquisition and Integration Costs2,277 — 
Restructuring Charges 79,254 80,344 
Intangible impairments— 23,000 
(Gain) Loss on disposal/write-down of property, plant and equipment, net (133,386)(2,330)
Total Operating Expenses1,725,462 1,781,742 
Operating Income (Loss)476,334 269,228 
Interest Expense, Net (includes Interest Income of $3,698 and $4,015 for the six months ended
June 30, 2021 and 2020, respectively)
209,642 209,105 
Other (Income) Expense, Net(181,517)(17,026)
Net Income (Loss) Before Provision (Benefit) for Income Taxes448,209 77,149 
Provision (Benefit) for Income Taxes125,056 19,370 
Net Income (Loss)323,153 57,779 
Less: Net Income (Loss) Attributable to Noncontrolling Interests2,265 890 
Net Income (Loss) Attributable to Iron Mountain Incorporated$320,888 $56,889 
Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated:  
Basic$1.11 $0.20 
Diluted$1.11 $0.20 
Weighted Average Common Shares Outstanding—Basic289,001 287,955 
Weighted Average Common Shares Outstanding—Diluted290,303 288,301 











The accompanying notes are an integral part of these condensed consolidated financial statements.
4
IRON MOUNTAIN JUNE 30, 2021 FORM 10-Q
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(IN THOUSANDS) (UNAUDITED)
 THREE MONTHS ENDED
JUNE 30,
 20212020
Net Income (Loss)$276,522 $(7,113)
Other Comprehensive Income (Loss):  
Foreign Currency Translation Adjustment42,543 69,027 
Change in Fair Value of Derivative Instruments5,634 (2,961)
Total Other Comprehensive Income (Loss)48,177 66,066 
Comprehensive Income (Loss)324,699 58,953 
Comprehensive Income (Loss) Attributable to Noncontrolling Interests1,156 314 
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated$323,543 $58,639 
 SIX MONTHS ENDED
JUNE 30,
 20212020
Net Income (Loss)$323,153 $57,779 
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustment(23,812)(154,625)
Change in Fair Value of Derivative Instruments20,840 (11,323)
Total Other Comprehensive (Loss) Income(2,972)(165,948)
Comprehensive Income (Loss)320,181 (108,169)
Comprehensive Income (Loss) Attributable to Noncontrolling Interests2,053 (116)
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated$318,128 $(108,053)
















The accompanying notes are an integral part of these condensed consolidated financial statements.
IRON MOUNTAIN JUNE 30, 2021 FORM 10-Q
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Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(IN THOUSANDS, EXCEPT SHARE DATA) (UNAUDITED)
THREE MONTH PERIOD ENDED JUNE 30, 2021
 IRON MOUNTAIN INCORPORATED STOCKHOLDERS' EQUITY
 COMMON STOCKADDITIONAL
PAID-IN
CAPITAL		(DISTRIBUTIONS
IN EXCESS OF
EARNINGS) EARNINGS IN
EXCESS OF
DISTRIBUTIONS		ACCUMULATED
OTHER
COMPREHENSIVE
ITEMS, NET		REDEEMABLE
NONCONTROLLING
INTERESTS
 TOTALSHARESAMOUNTS
Balance, March 31, 2021$959,707 288,727,747 $2,888 $4,347,151 $(3,083,421)$(306,911)$61,601 
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation45,252 731,021 7 45,245 — — — 
Parent cash dividends declared(180,760)— — — (180,760)— — 
Foreign currency translation adjustment42,624 — — — — 42,624 (81)
Change in fair value of derivative instruments5,634 — — — — 5,634 — 
Net income (loss)275,285 — — — 275,285 — 1,237 
Noncontrolling interests dividends— — — — — — (664)
Purchase of noncontrolling interests— — — — — — 2,567 
Balance, June 30, 2021$1,147,742 289,458,768 $2,895 $4,392,396 $(2,988,896)$(258,653)$64,660 
SIX MONTH PERIOD ENDED JUNE 30, 2021
 IRON MOUNTAIN INCORPORATED STOCKHOLDERS' EQUITY
 COMMON STOCKADDITIONAL
PAID-IN
CAPITAL		(DISTRIBUTIONS
IN EXCESS OF
EARNINGS) EARNINGS IN
EXCESS OF
DISTRIBUTIONS		ACCUMULATED
OTHER
COMPREHENSIVE
ITEMS, NET		REDEEMABLE
NONCONTROLLING
INTERESTS
 TOTALSHARESAMOUNTS
Balance, December 31, 2020$1,136,729 288,273,049 $2,883 $4,340,078 $(2,950,339)$(255,893)$59,805 
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation51,650 1,185,719 12 51,638 — — — 
Change in equity related to redeemable noncontrolling interests680 — — 680 — — (680)
Parent cash dividends declared (359,445)— — — (359,445)— — 
Foreign currency translation adjustment(23,600)— — — — (23,600)(212)
Change in fair value of derivative instruments20,840 — — — — 20,840 — 
Net income (loss)320,888 — — — 320,888 — 2,265 
Noncontrolling interests equity contributions— — — — — — 2,200 
Noncontrolling interests dividends— — — — — — (1,285)
Purchase of noncontrolling interests— — — — — — 2,567 
Balance, June 30, 2021$1,147,742 289,458,768 $2,895 $4,392,396 $(2,988,896)$(258,653)$64,660 
















The accompanying notes are an integral part of these condensed consolidated financial statements.
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IRON MOUNTAIN JUNE 30, 2021 FORM 10-Q
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(IN THOUSANDS, EXCEPT SHARE DATA) (UNAUDITED)
THREE MONTH PERIOD ENDED JUNE 30, 2020
 IRON MOUNTAIN INCORPORATED STOCKHOLDERS' EQUITY
 COMMON STOCKADDITIONAL
PAID-IN
CAPITAL		(DISTRIBUTIONS
IN EXCESS OF
EARNINGS) EARNINGS IN
EXCESS OF
DISTRIBUTIONS		ACCUMULATED
OTHER
COMPREHENSIVE
ITEMS, NET
NONCONTROLLING
INTERESTS
REDEEMABLE
NONCONTROLLING
INTERESTS
 TOTALSHARESAMOUNTS
Balance, March 31, 2020$1,123,841 287,879,142 $2,879 $4,304,477 $(2,690,433)$(493,248)$166 $62,157 
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation22,725 263,561 2 22,723 — — — — 
Change in equity related to redeemable noncontrolling interests(1,397)— — (1,397)— — — 1,397 
Parent cash dividends declared(179,342)— — — (179,342)— — — 
Foreign currency translation adjustment68,686 — — — — 68,686 — 341 
Change in fair value of derivative instruments(2,961)— — — — (2,961)— — 
Net (loss) income(7,221)— — — (7,086)— (135)108 
Noncontrolling interests dividends— — — — — — — (491)
Balance, June 30, 2020$1,024,331 288,142,703 $2,881 $4,325,803 $(2,876,861)$(427,523)$31 $63,512 
SIX MONTH PERIOD ENDED JUNE 30, 2020
 IRON MOUNTAIN INCORPORATED STOCKHOLDERS' EQUITY
 COMMON STOCKADDITIONAL
PAID-IN
CAPITAL		(DISTRIBUTIONS
IN EXCESS OF
EARNINGS) EARNINGS IN
EXCESS OF
DISTRIBUTIONS		ACCUMULATED
OTHER
COMPREHENSIVE
ITEMS, NET		NONCONTROLLING
INTERESTS		REDEEMABLE
NONCONTROLLING
INTERESTS
 TOTALSHARESAMOUNTS
Balance, December 31, 2019$1,464,227 287,299,645 $2,873 $4,298,566 $(2,574,896)$(262,581)$265 $67,682 
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation24,642 843,058 8 24,634 — — — — 
Change in equity related to redeemable noncontrolling interests2,603 — — 2,603 — — — (2,603)
Parent cash dividends declared (358,854)— — — (358,854)— — — 
Foreign currency translation adjustment(153,619)— — — — (153,619)— (1,006)
Change in fair value of derivative instruments(11,323)— — — — (11,323)— — 
Net income (loss)56,655 — — — 56,889 — (234)1,124 
Noncontrolling interests dividends— — — — — — — (1,685)
Balance, June 30, 2020$1,024,331 288,142,703 $2,881 $4,325,803 $(2,876,861)$(427,523)$31 $63,512 









The accompanying notes are an integral part of these condensed consolidated financial statements.
IRON MOUNTAIN JUNE 30, 2021 FORM 10-Q
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Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS) (UNAUDITED)
 SIX MONTHS ENDED JUNE 30,
 20212020
Cash Flows from Operating Activities: 
Net income (loss)$323,153 $57,779 
Adjustments to reconcile net income (loss) to cash flows from operating activities:  
Depreciation226,939 226,628 
Amortization (includes amortization of deferred financing costs and discounts of $8,443 and $9,001 for the six months ended June 30, 2021 and 2020, respectively)
113,831 108,807 
Intangible impairments — 23,000 
Revenue reduction associated with amortization of customer inducements and above- and below-market leases 4,327 5,248 
Stock-based compensation expense33,652 26,672 
Provision (benefit) for deferred income taxes30,899 (2,413)
Loss on early extinguishment of debt— 17,040 
Gain on IPM Divestment (as defined and described in Note 4)(181,196)— 
(Gain) loss on disposal/write-down of property, plant and equipment, net (133,386)(2,330)
Foreign currency transactions and other, net2,727 (30,555)
(Increase) decrease in assets(83,975)(10,794)
Increase (decrease) in liabilities52,231 19,992 
Cash Flows from Operating Activities 389,202 439,074 
Cash Flows from Investing Activities:  
Capital expenditures (295,586)(200,158)
Cash paid for acquisitions, net of cash acquired(35,723)(118,512)
Acquisition of customer relationships(3,641)(2,885)
Customer inducements (3,818)(6,970)
Contract fulfillment costs and third-party commissions(29,023)(18,738)
Investments in joint ventures and other investments(63,135)(6,850)
Net proceeds from IPM Divestment213,878 — 
Proceeds from sales of property and equipment and other, net209,697 9,902 
Cash Flows from Investing Activities (7,351)(344,211)
Cash Flows from Financing Activities:  
Repayment of revolving credit facility, term loan facilities and other debt(1,620,167)(5,691,163)
Proceeds from revolving credit facility, term loan facilities and other debt1,763,597 5,426,057 
Early redemption of senior notes, including call premiums— (1,111,986)
Net proceeds from sales of senior notes— 2,376,000 
Debt repayment and equity distribution to noncontrolling interests (1,285)(1,685)
Repurchase of noncontrolling interest(75,000)— 
Parent cash dividends(359,824)(359,461)
Net proceeds (payments) associated with employee stock-based awards 17,998 (2,030)
Other, net3,742 (18,820)
Cash Flows from Financing Activities(270,939)616,912 
Effect of Exchange Rates on Cash and Cash Equivalents(47)1,850 
Increase (decrease) in Cash and Cash Equivalents110,865 713,625 
Cash and Cash Equivalents, including Restricted Cash, Beginning of Period205,063 193,555 
Cash and Cash Equivalents, including Restricted Cash, End of Period$315,928 $907,180 
Supplemental Information: 
Cash Paid for Interest$217,687 $225,676 
Cash Paid for Income Taxes, Net$45,246 $1,798 
Non-Cash Investing and Financing Activities:  
Financing Leases $13,775 $26,546 
Accrued Capital Expenditures$45,665 $50,831 
Fair Value of Investments Applied to Acquisitions $— $27,276 
Dividends Payable$187,488 $185,414 
The accompanying notes are an integral part of these condensed consolidated financial statements.
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IRON MOUNTAIN JUNE 30, 2021 FORM 10-Q
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share data) (Unaudited)
1. GENERAL
The unaudited condensed consolidated financial statements of Iron Mountain Incorporated, a Delaware corporation (“IMI”), and its subsidiaries (“we” or “us”), have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted pursuant to those rules and regulations, but we believe that the disclosures included herein are adequate to make the information presented not misleading. The interim condensed consolidated financial statements are presented herein and, in the opinion of management, reflect all adjustments of a normal recurring nature necessary for a fair presentation. Interim results are not necessarily indicative of results for a full year.
The Condensed Consolidated Financial Statements and Notes thereto, which are included herein, should be read in conjunction with the Consolidated Financial Statements and Notes thereto for the year ended December 31, 2020 included in our Annual Report on Form 10-K filed with the SEC on February 24, 2021 (our “Annual Report”).
We have been organized and have operated as a real estate investment trust for United States federal income tax purposes (“REIT”) beginning with our taxable year ended December 31, 2014.
In March 2020, the World Health Organization declared a novel strain of coronavirus (“COVID-19”) a pandemic. The preventative and protective actions that governments have ordered, or we or our customers have implemented, have resulted in a period of reduced service operations and business disruption for us, our customers and other third parties with which we do business. The broader impacts of the COVID-19 pandemic on our financial position, results of operations and cash flows, including impacts to the estimates we use in the preparation of our financial statements, remain uncertain and difficult to predict as information continues to evolve, and the severity and duration of the pandemic remains unknown, as is our visibility of its effect on the markets we serve and our customers within those markets.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Cash and cash equivalents include cash on hand and cash invested in highly liquid short-term securities, which have remaining maturities at the date of purchase of less than 90 days. Cash and cash equivalents are carried at cost, which approximates fair value.
B. ACCOUNTS RECEIVABLE
We maintain an allowance for doubtful accounts and a credit memo reserve for estimated losses resulting from the potential inability of our customers to make required payments and potential disputes regarding billing and service issues. Rollforward of allowance for doubtful accounts and credit memo reserves for the six months ended June 30, 2021 is as follows:
Balance as of December 31, 2020$56,981 
Credit memos charged to revenue21,699 
Allowance for bad debts charged to expense13,442 
Deductions and other(1)
(35,145)
Balance as of June 30, 2021$56,977 
(1)Primarily consists of the issuance of credit memos, the write-off of accounts receivable and the impact associated with currency translation adjustments.
IRON MOUNTAIN JUNE 30, 2021 FORM 10-Q
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Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. LEASES
We lease facilities for certain warehouses, data centers and office space. We also have land leases, including those on which certain facilities are located. Operating and financing lease right-of-use assets and lease liabilities as of June 30, 2021 and December 31, 2020 are as follows:
DESCRIPTIONJUNE 30, 2021DECEMBER 31, 2020
Assets:
Operating lease right-of-use assets$2,342,197 $2,196,502 
Financing lease right-of-use assets, net of accumulated depreciation(1)
297,052 310,534 
Liabilities:
Current
Operating lease liabilities$263,784 $250,239 
Financing lease liabilities(1)
43,728 43,149 
Long-term
Operating lease liabilities2,186,625 2,044,598 
Financing lease liabilities(1)
308,895 323,162 
(1)Financing lease right-of-use assets, current financing lease liabilities and long-term financing lease liabilities are included within Property, Plant and Equipment, Net, Current portion of long-term debt and Long-term Debt, net of current portion, respectively, within our Condensed Consolidated Balance Sheets.
The components of the lease expense for the three and six months ended June 30, 2021 and 2020 are as follows:
THREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
DESCRIPTION2021202020212020
Operating lease cost(1)
$135,086 $119,277 $267,761 $242,566 
Financing lease cost:
Depreciation of financing lease right-of-use assets$12,408 $12,567 $25,056 $25,522 
Interest expense for financing lease liabilities4,910 4,929 9,885 9,773 
(1)Operating lease cost, the majority of which is included in Cost of sales, includes variable lease costs of $29,219 and $57,587 for the three and six months ended June 30, 2021, respectively, and $26,996 and $54,801 for the three and six months ended June 30, 2020, respectively.
Other information: Supplemental cash flow information relating to our leases for the six months ended June 30, 2021 and 2020 is as follows:
SIX MONTHS ENDED JUNE 30,
CASH PAID FOR AMOUNTS INCLUDED IN MEASUREMENT OF LEASE LIABILITIES:20212020
Operating cash flows used in operating leases$192,039 $178,011 
Operating cash flows used in financing leases (interest)9,885 9,773 
Financing cash flows used in financing leases23,656 23,953 
NON-CASH ITEMS:
Operating lease modifications and reassessments$63,047 $76,764 
New operating leases (including acquisitions and sale-leaseback transactions)210,881 123,860 
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IRON MOUNTAIN JUNE 30, 2021 FORM 10-Q
Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. GOODWILL
Our reporting units as of December 31, 2020 are described in detail in Note 2.k. to Notes to Consolidated Financial Statements included in our Annual Report.
The changes in the carrying value of goodwill attributable to each reportable operating segment for the six months ended June 30, 2021 are as follows:
GLOBAL RIM BUSINESSGLOBAL DATA CENTER BUSINESSCORPORATE AND OTHER BUSINESSTOTAL CONSOLIDATED
Goodwill balance, net of accumulated amortization as of December 31, 2020$4,024,182 $436,987 $96,440 $4,557,609 
Non-tax deductible goodwill acquired during the period6,108 — 8,807 14,915 
Goodwill allocated to IPM Divestment (as defined and described in Note 4)— — (46,105)(46,105)
Fair value and other adjustments(6,091)— (1,268)(7,359)
Currency effects(5,598)(4,573)(135)(10,306)
Goodwill balance, net accumulated amortization as of June 30, 2021$4,018,601 $432,414 $57,739 $4,508,754 
Accumulated goodwill impairment balance as of June 30, 2021$132,409 $— $26,011 $158,420 
E. INVESTMENTS
2021 NEWLY FORMED JOINT VENTURE
In April 2021, we closed on an agreement to form a joint venture (the "Web Werks JV") with the shareholders of Web Werks India Private Limited ("Web Werks"), a colocation data center provider in India. In connection with the formation of the Web Werks JV, we made an initial investment of approximately 3,750,000 Indian rupees (or approximately $50,100, based upon the exchange rate between the United States dollar and Indian rupee as of the closing date of the initial investment) in exchange for a noncontrolling interest in the form of convertible preference shares in the Web Werks JV (the “Initial Web Werks JV Investment”). These shares are convertible into a to-be-determined amount of common shares based upon the achievement of EBITDA targets for the Web Werks JV's fiscal year ending March 31, 2022.
Under the terms of the Web Werks JV shareholder agreement, we are required to make additional investments over a period ending May 2023 totaling approximately 7,500,000 Indian rupees (or approximately $100,000, based upon the current exchange rate between the United States dollar and Indian rupee).
JOINT VENTURE SUMMARY
The following joint ventures are accounted for as equity method investments and are presented as a component of Other within Other assets, net in our Condensed Consolidated Balance Sheets. The carrying values and equity interests in our joint ventures at June 30, 2021 and December 31, 2020 are as follows:
JUNE 30, 2021DECEMBER 31, 2020
CARRYING VALUEEQUITY INTERESTCARRYING VALUEEQUITY INTEREST
Web Werks JV
$50,135 38 %$— — %
Joint venture with AGC Equity Partners (the “Frankfurt JV”)
26,387 20 %26,500 20 %
Joint venture with MakeSpace Labs, Inc. (the “MakeSpace JV”)
24,069 45 %16,924 39 %


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Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
F. FAIR VALUE MEASUREMENTS
The assets and liabilities carried at fair value measured on a recurring basis as of June 30, 2021 and December 31, 2020 are as follows:
  FAIR VALUE MEASUREMENTS AT JUNE 30, 2021 USING
DESCRIPTIONTOTAL CARRYING
VALUE AT
JUNE 30, 2021		QUOTED PRICES IN
ACTIVE MARKETS
(LEVEL 1)		SIGNIFICANT OTHER
OBSERVABLE INPUTS
(LEVEL 2)		SIGNIFICANT
UNOBSERVABLE
INPUTS (LEVEL 3)
Money Market Funds$160,100 $— $160,100 $— 
Time Deposits3,130 — 3,130 — 
Trading Securities12,672 12,431  241  — 
Derivative Liabilities28,863 — 28,863 — 
  FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2020 USING
DESCRIPTIONTOTAL CARRYING
VALUE AT
DECEMBER 31, 2020		QUOTED PRICES IN
ACTIVE MARKETS
(LEVEL 1)		SIGNIFICANT OTHER
OBSERVABLE INPUTS
(LEVEL 2)		SIGNIFICANT
UNOBSERVABLE
INPUTS (LEVEL 3)
Money Market Funds$62,657 $— $62,657 $— 
Time Deposits2,121 — 2,121 — 
Trading Securities10,892 10,636  256  — 
Derivative Liabilities49,703 — 49,703 — 
There were no material items that are measured at fair value on a non-recurring basis at June 30, 2021 and December 31, 2020, other than (i) those disclosed in Note 2.o. to Notes to Consolidated Financial Statements included in our Annual Report, (ii) our investment in the Web Werks JV, as described in Note 2.e., and (iii) those acquired in acquisitions that occurred during the six months ended June 30, 2021, as described in Note 3, all of which are based on Level 3 inputs.
G. REDEEMABLE NONCONTROLLING INTERESTS
In 2018, one of the noncontrolling interest shareholders in one of our foreign consolidated subsidiaries exercised its option to put its ownership interest back to us. Upon the exercise of the put option, this noncontrolling interest became mandatorily redeemable by us, and, therefore, was accounted for as a liability rather than a component of redeemable noncontrolling interests. In May 2021, we agreed to final settlement terms and paid the put option price for the noncontrolling interest shares. We remain in dispute with this former shareholder with respect to whether interest from the date of the put and certain other costs should be reimbursable. We have vigorously defended that interest and costs are not owed, and are currently awaiting a ruling from an arbitration hearing.
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Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
H. ACCUMULATED OTHER COMPREHENSIVE ITEMS, NET
The changes in accumulated other comprehensive items, net for the three and six months ended June 30, 2021 and 2020 are as follows:
THREE MONTHS ENDED JUNE 30, 2021SIX MONTHS ENDED JUNE 30, 2021
 FOREIGN
CURRENCY
TRANSLATION AND OTHER
ADJUSTMENTS		CHANGE IN FAIR VALUE OF
DERIVATIVE
INSTRUMENTS		TOTALFOREIGN
CURRENCY
TRANSLATION AND OTHER
ADJUSTMENTS		CHANGE IN FAIR VALUE OF DERIVATIVE INSTRUMENTSTOTAL
Beginning of Period$(272,414)$(34,497)$(306,911)$(206,190)$(49,703)$(255,893)
Other comprehensive income (loss):
Foreign currency translation and other adjustments42,624 — 42,624 (23,600)— (23,600)
Change in fair value of derivative instruments— 5,634 5,634 — 20,840 20,840 
Total other comprehensive income (loss)42,624 5,634 48,258 (23,600)20,840 (2,760)
End of Period$(229,790)$(28,863)$(258,653)$(229,790)$(28,863)$(258,653)
THREE MONTHS ENDED JUNE 30, 2020SIX MONTHS ENDED JUNE 30, 2020
 FOREIGN
CURRENCY
TRANSLATION AND OTHER
ADJUSTMENTS		CHANGE IN FAIR VALUE OF
DERIVATIVE
INSTRUMENTS		TOTALFOREIGN
CURRENCY
TRANSLATION AND OTHER
ADJUSTMENTS		CHANGE IN FAIR VALUE OF DERIVATIVE INSTRUMENTSTOTAL
Beginning of Period$(475,130)$(18,118)$(493,248)$(252,825)$(9,756)$(262,581)
Other comprehensive income (loss):
Foreign currency translation and other adjustments68,686 — 68,686 (153,619)— (153,619)
Change in fair value of derivative instruments— (2,961)(2,961)— (11,323)(11,323)
Total other comprehensive income (loss) 68,686 (2,961)65,725 (153,619)(11,323)(164,942)
End of Period$(406,444)$(21,079)$(427,523)$(406,444)$(21,079)$(427,523)
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Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
I. REVENUES
The costs associated with the initial movement of customer records into physical storage and certain commissions are considered costs to obtain or fulfill customer contracts (collectively, “Contract Fulfillment Costs”). Contract Fulfillment Costs as of June 30, 2021 and December 31, 2020 are as follows:
JUNE 30, 2021DECEMBER 31, 2020
GROSS
CARRYING
AMOUNT		ACCUMULATED
AMORTIZATION		NET
CARRYING
AMOUNT		GROSS
CARRYING
AMOUNT		ACCUMULATED
AMORTIZATION		NET
CARRYING
AMOUNT
Intake Costs asset$70,263 $(39,083)$31,180 $63,721 $(33,352)$30,369 
Commissions asset104,184 (45,898)58,286 91,069 (38,787)52,282 
Deferred revenue liabilities are reflected in our Condensed Consolidated Balance Sheets as follows:
DESCRIPTIONLOCATION IN BALANCE SHEETJUNE 30, 2021DECEMBER 31, 2020
Deferred revenue - CurrentDeferred revenue$256,245 $295,785 
Deferred revenue - Long-termOther Long-term Liabilities34,502 35,612 
DATA CENTER LESSOR CONSIDERATIONS
Our Global Data Center Business features storage rental provided to customers at contractually specified rates over a fixed contractual period, which are accounted for in accordance with Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842), as amended. Storage rental revenue, including revenue associated with power and connectivity, associated with our Global Data Center Business for the three and six months ended June 30, 2021 and 2020 are as follows:
THREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
2021202020212020
Storage rental revenue(1)
$71,237 $63,812 $138,394 $128,407 
(1)Revenue associated with power and connectivity included within storage rental revenue was $14,561 and $27,694 for the three and six months ended June 30, 2021, respectively, and $11,540 and $22,953 for the three and six months ended June 30, 2020, respectively.
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Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
J. STOCK-BASED COMPENSATION
Stock-based compensation expense for the cost of stock options, restricted stock units (“RSUs”), performance units (“PUs”) and shares of stock issued under our employee stock purchase plan (collectively, “Employee Stock-Based Awards”) for the three and six months ended June 30, 2021 and 2020 is as follows:
THREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
2021202020212020
Stock-based compensation expense$22,699 $20,145 $33,652 $26,672 
As of June 30, 2021, unrecognized compensation cost related to the unvested portion of our Employee Stock-Based Awards is $64,444.
RESTRICTED STOCK UNITS AND PERFORMANCE UNITS
The fair value of RSUs and earned PUs that vested during the three and six months ended June 30, 2021 and 2020 is as follows:
THREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
 2021202020212020
Fair value of RSUs vested$3,118 $3,266 $22,979 $21,645 
Fair value of earned PUs that vested235 161 5,826 11,051 
As of June 30, 2021, we expected 133%, 114% and 103% achievement of each of the predefined targets associated with the awards of PUs made in 2021, 2020 and 2019, respectively.
K. ACQUISITION AND INTEGRATION COSTS
Acquisition and integration costs represent operating expenditures directly associated with the closing and integration activities of our business acquisitions that have closed, or are highly probable of closing, and include (i) advisory, legal and professional fees to complete business acquisitions and (ii) costs to integrate acquired businesses into our existing operations, including move, severance, facility upgrade and system integration costs (collectively, "Acquisition and Integration Costs"). Acquisition and Integration Costs do not include costs associated with the formation of joint ventures or costs associated with the acquisition of customer relationships. Total Acquisition and Integration Costs for the three and six months ended June 30, 2021 is $2,277.
L. (GAIN) LOSS ON DISPOSAL/WRITE-DOWN OF PROPERTY, PLANT AND EQUIPMENT, NET
Consolidated (gain) loss on disposal/write-down of property, plant and equipment, net for the three and six months ended June 30, 2021 and 2020 is as follows:
THREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
2021(1)
2020
2021(1)
2020
(Gain) Loss on disposal/write-down of property, plant and equipment, net$(128,935)$(1,275)$(133,386)$(2,330)
(1)    The gains for the three and six months ended June 30, 2021 primarily consisted of gains of approximately $127,400 associated with the sale-leaseback transactions of five facilities in the United Kingdom, as part of our program to monetize a small portion of our industrial assets. The terms for these leases are consistent with the terms of our lease portfolio, which are disclosed in detail in Note 2.i. to Notes to Consolidated Financial Statements included in our Annual Report.
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Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
M. OTHER (INCOME) EXPENSE, NET
Consolidated other (income) expense, net for the three and six months ended June 30, 2021 and 2020 consists of the following:
 THREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
DESCRIPTION2021202020212020
Foreign currency transaction losses (gains), net$4,729 $1,471 $7,043 $(35,928)
Debt extinguishment expense— 17,040 — 17,040 
Other, net(1)
(190,959)7,189 (188,560)1,862 
Other (Income) Expense, Net$(186,230)$25,700 $(181,517)$(17,026)
(1)Other, net for the three and six months ended June 30, 2021 is primarily comprised of (a) a gain of approximately $181,200 associated with our IPM Divestment (as defined in Note 4) and (b) a gain of approximately $20,300 associated with the loss of control and related deconsolidation, as of May 18, 2021, of one of our wholly owned Netherlands subsidiaries, for which we had value-added tax liability exposure that was recorded in 2019.
N. INCOME TAXES
We provide for income taxes during interim periods based on our estimate of the effective tax rate for the year.
Our effective tax rates for the three and six months ended June 30, 2021 and 2020 are as follows:
 THREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
2021(1)
2020(2)
2021(1)
2020(3)
Effective Tax Rate28.5 %— %27.9 %25.1 %
(1)The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three and six months ended June 30, 2021 were the impacts of differences in the tax rates at which our foreign earnings are subject and a discrete tax expense of approximately $12,000 primarily resulting from a tax law change in the United Kingdom, partially offset by the benefits derived from the dividends paid deduction.
(2)For the three months ended June 30, 2020, we had a provision for income taxes of $9,683 and net income before provision for income taxes of $2,570; as such, our effective tax rate is not meaningful.
(3)The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the six months ended June 30, 2020 were the impacts of differences in the tax rates at which our foreign earnings are subject, partially offset by the benefits derived from the dividends paid deduction.

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Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
O. INCOME (LOSS) PER SHARE—BASIC AND DILUTED
The calculation of basic and diluted income (loss) per share for the three and six months ended June 30, 2021 and 2020 are as follows:
 
THREE MONTHS ENDED
JUNE 30,
SIX MONTHS ENDED
JUNE 30,
 2021202020212020
Net Income (Loss)$276,522 $(7,113)$323,153 $57,779 
Less: Net Income (Loss) Attributable to Noncontrolling Interests1,237 (27)2,265 890 
Net Income (Loss) Attributable to Iron Mountain Incorporated (utilized in numerator of Earnings Per Share calculation)$275,285 $(7,086)$320,888 $56,889 
Weighted-average shares—basic289,247,000 288,071,000 289,001,000 287,955,000 
Effect of dilutive potential stock options641,888 — 349,163 35,706 
Effect of dilutive potential RSUs and PUs1,190,357 — 953,104 309,911 
Weighted-average shares—diluted291,079,245 288,071,000 290,303,267 288,300,617 
Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated:    
 Basic$0.95 $(0.02)$1.11 $0.20 
 Diluted$0.95 $(0.02)$1.11 $0.20 
Antidilutive stock options, RSUs and PUs, excluded from the calculation381,900 6,836,239 2,544,984 6,174,977 
P. RECENT ACCOUNTING PRONOUNCEMENTS
In December 2019, the Financial Accounting Standards Board issued ASU No. 2019-12, Income Taxes (Topic 740) (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions for recognizing deferred taxes for investments, performing intra-period allocation and calculating income taxes in interim periods. ASU 2019-12 also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. We adopted ASU 2019-12 on January 1, 2021. ASU 2019-12 did not have a material impact on our consolidated financial statements.

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Table of Contents
Part I. Financial Information
IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
3. ACQUISITIONS
During the second quarter of 2021, in order to enhance our existing operations in the United Kingdom and Indonesia and to expand our operations into Morocco, we completed the acquisition of two records management companies and one art storage company for total cash consideration of approximately $45,000.
PURCHASE PRICE ALLOCATION
A summary of the cumulative consideration paid and the preliminary allocation of the purchase price paid for all of our 2021 acquisitions through June 30, 2021 is as follows:
SIX MONTHS ENDED
JUNE 30, 2021
Cash Paid (gross of cash acquired)$44,760 
Fair Value of Noncontrolling Interest2,567 
Purchase Price Holdbacks and Other199 
Total Consideration47,526 
Fair Value of Identifiable Assets Acquired and Liabilities Assumed:
Cash9,037 
Accounts Receivable, Prepaid Expenses and Other Assets8,487 
Property, Plant and Equipment(1)
8,375 
Customer Relationship Intangible Assets(2)
19,010 
Operating Lease Right-of-Use Assets40,057 
Debt Assumed(1,367)
Accounts Payable, Accrued Expenses and Other Liabilities(6,507)
Operating Lease Liabilities(40,057)
Deferred Income Taxes(4,424)
Total Fair Value of Identifiable Net Assets Acquired32,611 
Goodwill Initially Recorded$14,915 
(1)Consists primarily of leasehold improvements, racking structures, warehouse equipment and computer hardware and software.
(2)The preliminary weighted average lives of customer relationship intangible assets associated with acquisitions is 12 years.
The preliminary purchase price allocations that are not finalized as of June 30, 2021 relate to the final assessment of the fair values of intangible assets (primarily customer relationship intangible assets), property, plant and equipment (primarily racking structures) and income taxes (primarily deferred taxes) associated with the acquisitions we closed in 2021. Any adjustments to our estimates of purchase price allocation will be made in the periods in which the adjustments are determined, but no later than the one year measurement period, and the cumulative effect of such adjustments will be calculated as if the adjustments had been completed as of the acquisition dates. Adjustments recorded during the six months ended June 30, 2021 were not material to our results from operations.
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IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
4. DIVESTMENTS
On June 7, 2021, we sold our Intellectual Property Management ("IPM") business, also known as our technology escrow services business, which we predominantly operated in the United States, for total gross consideration of approximately $217,200 (the “IPM Divestment”). As a result of the IPM Divestment, we recorded a gain on sale of approximately $181,200 to Other (income) expense, net, in the second quarter of 2021, representing the excess of the fair value of the consideration received over the sum of the carrying value of the IPM business.
We have concluded that the IPM Divestment does not meet the criteria to be reported as discontinued operations in our consolidated financial statements, as our decision to divest this business does not represent a strategic shift that will have a major effect on our operations and financial results. Accordingly, the revenues and expenses associated with this business are presented as a component of operating income (loss) in our Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2021 and 2020 through the closing date of the IPM Divestment and the cash flows associated with this business is presented as a component of cash flows from operations in our Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2021 and 2020 through the closing date of the IPM Divestment.
5. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Derivative instruments we are party to include: (i) interest rate swap agreements (which are designated as cash flow hedges) and (ii) cross-currency swap agreements (which are designated as net investment hedges).
INTEREST RATE SWAP AGREEMENTS DESIGNATED AS CASH FLOW HEDGES
In March 2018, we entered into interest rate swap agreements to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness. As of June 30, 2021 and December 31, 2020, we had $350,000 in notional value of interest rate swap agreements outstanding, which expire in March 2022. Under the interest rate swap agreements, we receive variable rate interest payments associated with the notional amount of each interest rate swap, based upon one-month LIBOR, in exchange for the payment of fixed interest rates as specified in the interest rate swap agreements.
In July 2019, we entered into forward-starting interest rate swap agreements to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness once our current interest rate swap agreements expire in March 2022. The forward-starting interest rate swap agreements have $350,000 in notional value, commence in March 2022 and expire in March 2024. Under the forward-starting interest rate swap agreements, we will receive variable rate interest payments based upon one-month LIBOR, in exchange for the payment of fixed interest rates as specified in the interest rate swap agreements.
We have designated these interest rate swap agreements, including the forward-starting interest rate swap agreements, as cash flow hedges. Unrealized gains are recognized as assets, while unrealized losses are recognized as liabilities.
CROSS-CURRENCY SWAP AGREEMENTS DESIGNATED AS A HEDGE OF NET INVESTMENT
In August 2019, we entered into cross-currency swap agreements to hedge the variability of exchange rate impacts between the United States dollar and the Euro. Under the terms of the cross-currency swap agreements, we notionally exchanged approximately $110,000 at an interest rate of 6.0% for approximately 99,055 Euros at a weighted average interest rate of approximately 3.65%. These cross-currency swap agreements expire in August 2023 (“August 2023 Cross-Currency Swap Agreements”).
In September 2020, we entered into cross-currency swap agreements to hedge the variability of exchange rate impacts between the United States dollar and the Euro. Under the terms of the cross-currency swap agreements, we notionally exchanged approximately $359,200 at an interest rate of 4.5% for approximately 300,000 Euros at a weighted average interest rate of approximately 3.4%. These cross-currency swap agreements expire in February 2026 (“February 2026 Cross-Currency Swap Agreements”).
We have designated these cross-currency swap agreements as a hedge of net investment against certain of our Euro denominated subsidiaries and they require an exchange of the notional amounts at maturity. These cross-currency swap agreements are marked to market at each reporting period, representing the fair values of the cross-currency swap agreements, and any changes in fair value are recognized as a component of Accumulated other comprehensive items, net. Unrealized gains are recognized as assets while unrealized losses are recognized as liabilities.
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IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
5. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (CONTINUED)
(Liabilities) assets recognized in our Condensed Consolidated Balance Sheets at June 30, 2021 and December 31, 2020, by derivative instrument, are as follows:
DERIVATIVE INSTRUMENTS(1)
JUNE 30, 2021DECEMBER 31, 2020
Cash Flow Hedges(2)
  
Interest Rate Swap Agreements$(15,066)$(21,062)
Net Investment Hedges(3)
August 2023 Cross-Currency Swap Agreements(4,951)(8,229)
February 2026 Cross-Currency Swap Agreements(8,846)(20,412)
(1)Our derivative liabilities are included either as a component of (i) Accrued expenses and other current liabilities or (ii) Other long-term liabilities in our Condensed Consolidated Balance Sheets. As of June 30, 2021, $6,413 is included within Accrued expenses and other current liabilities and $22,450 is included within Other long-term liabilities. As of December 31, 2020, $49,703 is included within Other long-term liabilities.
(2)As of June 30, 2021, cumulative net losses of $15,066 are recorded within Accumulated other comprehensive items, net associated with these interest rate swap agreements.
(3)As of June 30, 2021, cumulative net losses of $13,797 are recorded within Accumulated other comprehensive items, net associated with these cross-currency swap agreements.
Unrealized gains (losses) recognized during the three and six months ended June 30, 2021 and 2020, by derivative instrument, are as follows:
THREE MONTHS ENDED JUNE 30,
SIX MONTHS ENDED JUNE 30,
DERIVATIVE INSTRUMENTS(1)
2021202020212020
Cash Flow Hedges  
Interest Rate Swap Agreements$1,795 $(898)$5,996 $(15,630)
Net Investment Hedges
August 2023 Cross-Currency Swap Agreements(1,473)(2,062)3,278 4,308 
February 2026 Cross-Currency Swap Agreements5,312 — 11,566 — 
(1)These amounts are recognized as unrealized gains (losses), a component of Accumulated other comprehensive items, net.
EURO NOTES DESIGNATED AS A HEDGE OF NET INVESTMENT
Prior to their redemption in August 2020, we designated a portion of our previously outstanding 3% Euro Senior Notes due 2025 (the “Euro Notes”) as a hedge of net investment of certain of our Euro denominated subsidiaries. From January 1, 2020 through March 31, 2020, we designated 300,000 Euros of our Euro Notes as a hedge of net investment of certain of our Euro denominated subsidiaries. As a result, we recorded foreign exchange (gains) losses related to the change in fair value of such debt due to currency translation adjustments as a component of Accumulated other comprehensive items, net.
Foreign exchange gains (losses) associated with this hedge of net investment for the three and six months ended June 30, 2021 and 2020 are as follows:
 
THREE MONTHS ENDED JUNE 30,
SIX MONTHS ENDED
JUNE 30,
2021(1)
2020
2021(1)
2020
Foreign exchange gains (losses) associated with net investment hedge$— $(6,854)$— $(401)
(1)As there are no hedges of net investment outstanding during the three and six months ended June 30, 2021, no foreign exchange gains (losses) associated with hedges of net investment have been recognized.

As of June 30, 2021, cumulative net gains of $3,256, net of tax, are recorded in Accumulated other comprehensive items, net associated with this net investment hedge.
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IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
6. DEBT
Long-term debt is as follows:
 JUNE 30, 2021DECEMBER 31, 2020
 
DEBT
(INCLUSIVE OF
DISCOUNT)
UNAMORTIZED
DEFERRED
FINANCING
COSTS
CARRYING
AMOUNT
FAIR
VALUE
DEBT
(INCLUSIVE OF
DISCOUNT)
UNAMORTIZED
DEFERRED
FINANCING
COSTS
CARRYING
AMOUNT
FAIR
VALUE
Revolving Credit Facility(1)
$— $(6,896)$(6,896)$— $— $(8,620)$(8,620)$— 
Term Loan A(1)
209,375 — 209,375 209,375 215,625 — 215,625 215,625 
Term Loan B676,234 (5,620)670,614 677,250 679,621 (6,244)673,377 680,750 
Australian Dollar Term Loan (the “AUD Term Loan”)233,754 (1,130)232,624 234,353 243,152 (1,624)241,528 244,014 
UK Bilateral Revolving Credit Facility (the “UK Bilateral Facility”)193,701 (939)192,762 193,701 191,101 (1,307)189,794 191,101 
37/8% GBP Senior Notes due 2025 (the “GBP Notes”)
553,430 (4,441)548,989 559,656 546,003 (4,983)541,020 553,101 
47/8% Senior Notes due 2027 (the “47/8% Notes due 2027”)(2)
1,000,000 (8,887)991,113 1,036,250 1,000,000 (9,598)990,402 1,046,250 
51/4% Senior Notes due 2028 (the “51/4% Notes due 2028”)(2)
825,000 (7,971)817,029 862,125 825,000 (8,561)816,439 868,313 
5% Senior Notes due 2028 (the “5% Notes”)(2)
500,000 (5,125)494,875 518,750 500,000 (5,486)494,514 523,125 
47/8% Senior Notes due 2029 (the “47/8% Notes due 2029”)(2)
1,000,000 (11,934)988,066 1,033,750 1,000,000 (12,658)987,342 1,050,000 
51/4% Senior Notes due 2030 (the “51/4 Notes due 2030”)(2)
1,300,000 (13,664)1,286,336 1,373,125 1,300,000 (14,416)1,285,584 1,400,750 
41/2% Senior Notes due 2031 (the “41/2% Notes”)(2)
1,100,000 (12,026)1,087,974 1,112,375 1,100,000 (12,648)1,087,352 1,138,500 
55/8% Senior Notes due 2032 (the “55/8% Notes”)(2)
600,000 (6,437)593,563 645,000 600,000 (6,727)593,273 660,000 
Real Estate Mortgages, Financing Lease Liabilities and Other485,244 (954)484,290 485,244 511,922 (1,086)510,836 511,922 
Accounts Receivable Securitization Program276,800 (512)276,288 276,800 85,000 (152)84,848 85,000 
Total Long-term Debt8,953,538 (86,536)8,867,002  8,797,424 (94,110)8,703,314 
Less Current Portion(106,274)— (106,274) (193,759)— (193,759) 
Long-term Debt, Net of Current Portion$8,847,264 $(86,536)$8,760,728  $8,603,665 $(94,110)$8,509,555  
(1)Collectively, the “Credit Agreement”. The Credit Agreement consists of a revolving credit facility (the “Revolving Credit Facility”) and a term loan (the “Term Loan A”). The Credit Agreement is scheduled to mature on June 3, 2023. In addition, we also had various outstanding letters of credit totaling $3,238. The remaining amount available for borrowing under the Revolving Credit Facility as of June 30, 2021 was $1,746,762 (which amount represents the maximum availability as of such date). The average interest rate in effect under the Credit Agreement was 1.9% as of June 30, 2021 and December 31, 2020.
(2)Collectively, the “Parent Notes”.
See Note 6 to Notes to Consolidated Financial Statements included in our Annual Report for additional information regarding the Credit Agreement and our other long-term debt, including the direct obligors of each of our debt instruments as well as information regarding the fair value of our debt instruments (including the levels of the fair value hierarchy used to determine the fair value of our debt instruments). The levels of the fair value hierarchy used to determine the fair value of our debt as of June 30, 2021 are consistent with the levels of the fair value hierarchy used to determine the fair value of our debt as of December 31, 2020 (which are disclosed in our Annual Report).
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IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
6. DEBT (CONTINUED)
UK BILATERAL REVOLVING CREDIT FACILITY
On May 25, 2021, Iron Mountain (UK) PLC and Iron Mountain (UK) Data Centre Limited entered into an amendment to the UK Bilateral Facility with Barclays Bank PLC to (i) modify the interest rate from LIBOR plus 2.25% to LIBOR plus 2.0% (with flexibility built in for the expected transition away from LIBOR) and (ii) add an additional option to extend the maturity date by one year. The UK Bilateral Facility now contains two one-year options that allow us to extend the maturity date beyond the September 23, 2022 expiration date, subject to certain conditions specified in the UK Bilateral Facility, including the lender's consent. There were no other changes to the terms of the UK Bilateral Revolving Credit Facility described in Note 6 to Notes to Consolidated Financial Statements included in our Annual Report.
MAXIMUM AMOUNT
£140,000

OPTIONAL ADDITIONAL
COMMITMENTS
£125,000

INTEREST RATE
2.3%
As of June 30, 2021
ACCOUNTS RECEIVABLE SECURITIZATION PROGRAM
On June 28, 2021, we entered into an amendment to the Accounts Receivable Securitization Program to extend the maturity date from July 30, 2021 to July 1, 2023, at which point all obligations become due. The interest rate under the amended Accounts Receivable Securitization Program is LIBOR plus 1.0%. The full amount outstanding under the Accounts Receivable Securitization Program is classified within long-term debt, net of current portion at June 30, 2021 and within current portion of long-term debt at December 31, 2020 in our Condensed Consolidated Balance Sheets. There were no other changes to the terms of the Accounts Receivable Securitization Program described in Note 6 to Notes to Consolidated Financial Statements included in our Annual Report.
OUTSTANDING BORROWINGS
$276,800

INTEREST RATE
1.1%
As of June 30, 2021

CASH POOLING
We currently utilize two separate cash pooling arrangements, one of which we utilize to manage global liquidity requirements for our qualified REIT subsidiaries (the “QRS Cash Pool”) and the other for our taxable REIT subsidiaries (the “TRS Cash Pool”). The approximate amount of the net cash position for our cash pools and the approximate amount of the gross position and outstanding debit balances for each of these pools as of June 30, 2021 and December 31, 2020 are as follows:
JUNE 30, 2021DECEMBER 31, 2020
 
GROSS CASH
POSITION
OUTSTANDING
DEBIT BALANCES
NET CASH
POSITION
GROSS CASH
POSITION
OUTSTANDING
DEBIT BALANCES
NET CASH
POSITION
QRS Cash Pool$441,100 $(435,200)$5,900 $448,700 $(447,400)$1,300 
TRS Cash Pool575,900 (570,900)5,000 555,500 (553,500)2,000 
The net cash position balances as of June 30, 2021 and December 31, 2020 are reflected as cash and cash equivalents in our Condensed Consolidated Balance Sheets.
LETTERS OF CREDIT
As of June 30, 2021, we had outstanding letters of credit totaling $36,679, of which $3,238 reduce our borrowing capacity under the Revolving Credit Facility (as described above). The letters of credit expire at various dates between September 2021 and March 2025.
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IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
6. DEBT (CONTINUED)
DEBT COVENANTS
The Credit Agreement, our bond indentures and other agreements governing our indebtedness contain certain restrictive financial and operating covenants, including covenants that restrict our ability to complete acquisitions, pay cash dividends, incur indebtedness, make investments, sell assets and take certain other corporate actions. The covenants do not contain a rating trigger. Therefore, a change in our debt rating would not trigger a default under the Credit Agreement, our bond indentures or other agreements governing our indebtedness. The Credit Agreement requires that we satisfy a fixed charge coverage ratio, a net total lease adjusted leverage ratio and a net secured debt lease adjusted leverage ratio on a quarterly basis and our bond indentures require that, among other things, we satisfy a leverage ratio (not lease adjusted) or a fixed charge coverage ratio (not lease adjusted), as a condition to taking actions such as paying dividends and incurring indebtedness.
The Credit Agreement uses EBITDAR-based calculations and the bond indentures use EBITDA-based calculations as the primary measures of financial performance for purposes of calculating leverage and fixed charge coverage ratios. The EBITDAR- and EBITDA-based leverage calculations include our consolidated subsidiaries, other than those we have designated as “Unrestricted Subsidiaries” as defined in the Credit Agreement and bond indentures. Generally, the Credit Agreement and the bond indentures use a trailing four fiscal quarter basis for purposes of the relevant calculations and require certain adjustments and exclusions for purposes of those calculations, which make the calculation of financial performance for purposes of those calculations under the Credit Agreement and bond indentures not directly comparable to Adjusted EBITDA as presented herein. We are in compliance with our leverage and fixed charge coverage ratios under the Credit Agreement, our bond indentures and other agreements governing our indebtedness as of June 30, 2021 and December 31, 2020. Noncompliance with these leverage and fixed charge coverage ratios would have a material adverse effect on our financial condition.
7. COMMITMENTS AND CONTINGENCIES
We are involved in litigation from time to time in the ordinary course of business, including litigation arising from damage to customer assets in our facilities caused by fires and other natural disasters. While the outcome of such litigation is inherently uncertain, we do not believe any current litigation will have a material adverse effect on our consolidated financial condition, results of operations or cash flows.
We have estimated a reasonably possible range for all loss contingencies and believe it is reasonably possible that we could incur aggregate losses in addition to amounts currently accrued for all matters up to an additional $23,000 over the next several years, of which certain amounts would be covered by insurance or indemnity arrangements.
8. STOCKHOLDERS' EQUITY MATTERS
In fiscal year 2020 and the first six months of 2021, our board of directors declared the following dividends:
DECLARATION DATEDIVIDEND
PER SHARE		RECORD DATETOTAL
AMOUNT		PAYMENT DATE
February 13, 2020$0.6185 March 16, 2020$178,047 April 6, 2020
May 5, 20200.6185 June 15, 2020178,212 July 2, 2020
August 5, 20200.6185 September 15, 2020178,224 October 2, 2020
November 4, 20200.6185 December 15, 2020178,290 January 6, 2021
February 24, 20210.6185 March 15, 2021178,569 April 6, 2021
May 6, 20210.6185 June 15, 2021179,026 July 6, 2021
On August 5, 2021, we declared a dividend to our stockholders of record as of September 15, 2021 of $0.6185 per share, payable on October 6, 2021.
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IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
9. SEGMENT INFORMATION
Our three reportable operating segments as of December 31, 2020 are described in Note 10 to Notes to Consolidated Financial Statements included in our Annual Report and are as follows:
•Global Records and Information Management (“Global RIM”) Business
•Global Data Center Business
•Corporate and Other Business
The operations associated with acquisitions completed during the first six months of 2021 have been incorporated into our existing reportable operating segments.
An analysis of our business segment information and reconciliation to the accompanying Condensed Consolidated Financial Statements for the three and six months ended June 30, 2021 and 2020 is as follows:
THREE MONTHS ENDED
JUNE 30,		SIX MONTHS ENDED
JUNE 30,
2021202020212020
Global RIM Business
Total Revenues$992,932 $877,102 $1,960,226 $1,833,521 
Adjusted EBITDA430,308 383,816 838,870 775,787 
Global Data Center Business
Total Revenues$76,977 $66,768 $148,085 $134,125 
Adjusted EBITDA33,432 30,558 63,864 61,454 
Corporate and Other Business
Total Revenues$49,847 $38,369 $93,485 $83,324 
Adjusted EBITDA(58,109)(54,912)(116,538)(111,780)
Total Consolidated
Total Revenues$1,119,756 $982,239 $2,201,796 $2,050,970 
Adjusted EBITDA405,631 359,462 786,196 725,461 

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IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
9. SEGMENT INFORMATION (CONTINUED)
During the fourth quarter of 2020, we changed our definition of Adjusted EBITDA to (a) exclude stock-based compensation expense and (b) include our share of Adjusted EBITDA from our unconsolidated joint ventures. All prior periods have been recast to conform to these changes. We now define Adjusted EBITDA for each segment as net income (loss) before interest expense, net, provision (benefit) for income taxes, depreciation and amortization (inclusive of our share of Adjusted EBITDA from our unconsolidated joint ventures), and excluding certain items we do not believe to be indicative of our core operating results, specifically:
EXCLUDED
•Acquisition and Integration Costs
•Other (income) expense, net
•Restructuring Charges
•Stock-based compensation expense
•Intangible impairments
•COVID-19 Costs (as defined below)
•(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate)
Internally, we use Adjusted EBITDA as the basis for evaluating the performance of, and allocated resources to, our operating segments.
A reconciliation of Net Income (Loss) to Adjusted EBITDA on a consolidated basis for the three and six months ended June 30, 2021 and 2020 is as follows:
 THREE MONTHS ENDED
JUNE 30,		SIX MONTHS ENDED
JUNE 30,
2021202020212020
Net Income (Loss)$276,522 $(7,113)$323,153 $57,779 
Add/(Deduct):
Interest expense, net105,220 103,456 209,642 209,105 
Provision (benefit) for income taxes110,416 9,683 125,056 19,370 
Depreciation and amortization166,685 163,850 332,327 326,434 
Acquisition and Integration Costs2,277 — 2,277 — 
Restructuring Charges39,443 39,298 79,254 80,344 
Intangible impairments— — — 23,000 
(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate)(128,935)(1,275)(133,386)(2,330)
Other (income) expense, net, excluding our share of losses (gains) from our unconsolidated joint ventures(189,605)23,239 (187,484)(21,792)
Stock-based compensation expense(1)
22,536 18,880 33,269 23,991 
COVID-19 Costs(2)
— 9,285 — 9,285 
Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures1,072 159 2,088 275 
Adjusted EBITDA$405,631 $359,462 $786,196 $725,461 
(1) Stock-based compensation expense related to Project Summit is included within Restructuring Charges for the three and six months ended June 30, 2021 and 2020.
(2) Costs that are incremental and directly attributable to the COVID-19 pandemic which are not expected to recur once the pandemic ends ("COVID-19 Costs"). These costs include the purchase of personal protective equipment for our employees and incremental cleaning costs of our facilities, among other direct costs.
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IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
9. SEGMENT INFORMATION (CONTINUED)
Information as to our revenues by product and service lines by segment for the three and six months ended June 30, 2021 and 2020 are as follows:
THREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,
2021202020212020
Global RIM Business
Records Management(1)
$765,818 $678,969 $1,517,941 $1,406,585 
Data Management(1)
118,239 119,259 236,653 245,157 
Information Destruction(1)(2)
108,875 78,874 205,632 181,779 
Data Center(1)
— — — — 
Global Data Center Business
Records Management(1)
$— $— $— $— 
Data Management(1)
— — — — 
Information Destruction(1)(2)
— — — — 
Data Center(1)
76,977 66,768 148,085 134,125 
Corporate and Other Business
Records Management(1)
$34,041 $21,079 $61,008 $49,955 
Data Management(1)
15,806 17,290 32,477 33,369 
Information Destruction(1)(2)
— — — — 
Data Center(1)
— — — — 
Total Consolidated
Records Management(1)
$799,859 $700,048 $1,578,949 $1,456,540 
Data Management(1)
134,045 136,549 269,130 278,526 
Information Destruction(1)(2)
108,875 78,874 205,632 181,779 
Data Center(1)
76,977 66,768 148,085 134,125 
(1)Each of the offerings within our product and service lines has a component of revenue that is storage rental related and a component that is service revenues, except for information destruction, which does not have a storage rental component.
(2)Includes secure shredding services.
10. RELATED PARTIES
In October 2020, in connection with the formation of the Frankfurt JV, we entered into agreements whereby we will earn various fees, including property management and construction and development fees, for services we are providing to the Frankfurt JV (the “Frankfurt JV Agreements”). Revenues and expenses associated with the Frankfurt JV Agreements are presented as a component of our Global Data Center Business segment. During the three and six months ended June 30, 2021, we recognized revenue of approximately $800 and $1,900, respectively, associated with the Frankfurt JV Agreements.
In March 2019, in connection with the formation of the MakeSpace JV, we entered into a storage and service agreement with the MakeSpace JV to provide certain storage and related services to the MakeSpace JV (the “MakeSpace Agreement”). Revenues and expenses associated with the MakeSpace Agreement are presented as a component of our Global RIM Business segment. We recognized revenue of approximately $8,100 and $15,600 for the three and six months ended June 30, 2021, respectively, and $7,100 and $13,900 for the three and six months ended June 30, 2020, respectively, associated with the MakeSpace Agreement.
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IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
11. PROJECT SUMMIT
In October 2019, we announced our global program designed to better position us for future growth and achievement of our strategic objectives (“Project Summit”). As a result of the program, we expect to reduce the number of positions at vice president and above by approximately 45%. The total program is expected to reduce our total managerial and administrative workforce by approximately 700 positions by the end of 2021. We have also reduced our services and operations workforce. As of June 30, 2021, we have completed approximately 95% of our planned workforce reductions. The activities associated with Project Summit began in the fourth quarter of 2019 and are expected to be substantially complete by the end of 2021.
We estimate that the implementation of Project Summit will result in total operating expenditures (“Restructuring Charges”) of approximately $450,000 that primarily consist of: (1) employee severance costs; (2) internal costs associated with the development and implementation of Project Summit initiatives; (3) professional fees, primarily related to third party consultants who are assisting with the design and execution of various initiatives as well as project management activities and (4) system implementation and data conversion costs.
Restructuring Charges included in the accompanying Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2021 and 2020, and from the inception of Project Summit through June 30, 2021, are as follows:
 THREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,FROM THE INCEPTION
OF PROJECT SUMMIT
THROUGH
JUNE 30, 2021
2021202020212020
Employee severance costs$3,921 $11,542 $7,729 $17,650 $75,928 
Professional fees and other costs35,522 27,756 71,525 62,694 246,319 
Restructuring Charges$39,443 $39,298 $79,254 $80,344 $322,247 
Restructuring Charges by segment for the three and six months ended June 30, 2021 and 2020, and from the inception of Project Summit through June 30, 2021, are as follows:
 THREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,FROM THE INCEPTION
OF PROJECT SUMMIT
THROUGH
JUNE 30, 2021
2021202020212020
Global RIM Business$7,942 $12,774 $16,166 $21,062 $105,206 
Global Data Center Business1,183 503 1,637 690 3,575 
Corporate and Other Business30,318 26,021 61,451 58,592 213,466 
Restructuring Charges$39,443 $39,298 $79,254 $80,344 $322,247 
A rollforward of the accrued Restructuring Charges, which is included as a component of Accrued expenses and other current liabilities in our Condensed Consolidated Balance Sheets, from December 31, 2019 through June 30, 2021, is as follows:
EMPLOYEE SEVERANCE COSTSPROFESSIONAL FEES AND OTHERTOTAL ACCRUED RESTRUCTURING CHARGES
Balance as of December 31, 2019$4,823 $12,954 $17,777 
Amounts accrued47,349 147,047 194,396 
Payments(32,455)(136,222)(168,677)
Other, including currency translation adjustments(3,439)(4)(3,443)
Balance as of December 31, 202016,278 23,775 40,053 
Amounts accrued7,729 71,525 79,254 
Payments(16,474)(69,380)(85,854)
Other, including currency translation adjustments(384)— (384)
Balance as of June 30, 2021$7,149 $25,920 $33,069 
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of our financial condition and results of operations for the three and six months ended June 30, 2021 should be read in conjunction with our Condensed Consolidated Financial Statements and Notes thereto for the three and six months ended June 30, 2021, included herein, and our Consolidated Financial Statements and Notes thereto for the year ended December 31, 2020, included in our Annual Report on Form 10-K filed with the United States Securities and Exchange Commission (“SEC”) on February 24, 2021 (our “Annual Report”).
FORWARD-LOOKING STATEMENTS
We have made statements in this Quarterly Report on Form 10-Q (this “Quarterly Report”) that constitute “forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements concern our operations, economic performance, financial condition, goals, beliefs, future growth strategies, investment objectives, plans and current expectations, such as our (1) expectations and assumptions regarding the impact of the COVID-19 (as defined below) pandemic on us and our customers, including on our businesses, financial position, results of operations and cash flows, (2) commitment to future dividend payments, (3) expected change in volume of records stored with us, (4) expected organic revenue growth, including 2021 consolidated organic storage rental revenue growth rate and consolidated organic total revenue growth rate, (5) expectations that profits will increase in our growth portfolio, including our higher-growth markets, and that our growth portfolio will become a larger part of our business over time, (6) expectations related to our revenue management programs and continuous improvement initiatives, (7) expectations related to monetizing our owned industrial real estate assets as part of our capital recycling program, (8) expected ability to identify and complete acquisitions and other investments, including joint ventures, and drive returns on invested capital, (9) anticipated capital expenditures, (10) expected benefits, costs and actions related to, and timing of, Project Summit (as defined below), and (11) other forward-looking statements related to our business, results of operations and financial condition. These forward-looking statements are subject to various known and unknown risks, uncertainties and other factors, and you should not rely upon them except as statements of our present intentions and of our present expectations, which may or may not occur. When we use words such as “believes,” “expects,” “anticipates,” “estimates”, “plans", “intends" or similar expressions, we are making forward-looking statements. Although we believe that our forward-looking statements are based on reasonable assumptions, our expected results may not be achieved, and actual results may differ materially from our expectations. In addition, important factors that could cause actual results to differ from expectations include, among others:
•the severity and duration of the COVID-19 pandemic and its effects on the global economy, including its effects on us, the markets we serve and our customers and the third parties with whom we do business within those markets;
•our ability to execute on Project Summit and the potential impacts of Project Summit on our ability to retain and recruit employees;
•our ability to remain qualified for taxation as a real estate investment trust for United States federal income tax purposes (“REIT”);
•changes in customer preferences and demand for our storage and information management services, including as a result of the shift from paper and tape storage to alternative technologies that require less physical space;
•our ability or inability to execute our strategic growth plan, including our ability to invest according to plan, incorporate new digital information technologies into our offerings, achieve satisfactory returns on new product offerings, continue our revenue management, expand internationally, complete acquisitions on satisfactory terms, integrate acquired companies efficiently and grow our business through joint ventures;
•changes in the amount of our capital expenditures;
•our ability to raise debt or equity capital and changes in the cost of our debt;
•the cost and our ability to comply with laws, regulations and customer demands, including those relating to data security and privacy issues, as well as fire and safety and environmental standards;
•the impact of litigation or disputes that may arise in connection with incidents in which we fail to protect our customers’ information or our internal records or information technology (“IT”) systems and the impact of such incidents on our reputation and ability to compete;
•changes in the price for our storage and information management services relative to the cost of providing such storage and information management services;
•changes in the political and economic environments in the countries in which our international subsidiaries operate and changes in the global political climate, particularly as we consolidate operations and move records and data across borders;
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•our ability to comply with our existing debt obligations and restrictions in our debt instruments;
•the impact of service interruptions or equipment damage and the cost of power on our data center operations;
•the cost or potential liabilities associated with real estate necessary for our business;
•failures in our adoption of new IT systems;
•unexpected events, including those resulting from climate change, could disrupt our operations and adversely affect our reputation and results of operations;
•other trends in competitive or economic conditions affecting our financial condition or results of operations not presently contemplated; and
•the other risks described in our periodic reports filed with the SEC, including under the caption “Risk Factors” in Part I, Item 1A of our Annual Report.
Except as required by law, we undertake no obligation to update any forward-looking statements appearing in this report.
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OVERVIEW
The following discussions set forth, for the periods indicated, management's discussion and analysis of financial condition and results of operations. Significant trends and changes are discussed for the three and six months ended June 30, 2021 within each section. Trends and changes that are consistent for both the three and six month periods are not repeated and are discussed on a year to date basis only.
COVID-19
In March 2020, the World Health Organization declared a novel strain of coronavirus (“COVID-19”) a pandemic. The preventative and protective actions that governments have ordered, or we or our customers have implemented, have resulted in a period of reduced service operations and business disruption for us, our customers and other third parties with which we do business. While we have broad geographic and customer diversification with operations in 58 countries and no single customer accounting for a significant portion of our revenue during the six months ended June 30, 2021, COVID-19 is a global pandemic impacting numerous industries and geographies. While our service operations have increased from the reductions we experienced during the peak of the COVID-19 pandemic, future service revenues remain uncertain and will be dependent on the severity of the COVID-19 pandemic, including new variants of COVID-19 that may emerge.
PROJECT SUMMIT
Compelling Adjusted EBITDA BenefitsImplementation Details
~$375M
Expected annual run-rate
benefits realized exiting 2021

•Project Summit began in Q4 2019 and is expected to be substantially complete by the end of 2021
•Cost to implement is estimated to be ~$450M
In October 2019, we announced our global program designed to better position us for future growth and achievement of our strategic objectives (“Project Summit”). As a result of the program, we expect to reduce the number of positions at vice president and above by approximately 45%. The total program is expected to reduce our total managerial and administrative workforce by approximately 700 positions by the end of 2021. We have also reduced our services and operations workforce. As of June 30, 2021, we have completed approximately 95% of our planned workforce reductions.
The activities associated with Project Summit began in the fourth quarter of 2019 and are expected to be substantially complete by the end of 2021. We expect the total program benefits associated with Project Summit to be fully realized exiting 2021. We expect that Project Summit will improve annual Adjusted EBITDA (as defined below) by approximately $375.0 million exiting 2021. We will continue to evaluate our overall operating model, as well as various opportunities and initiatives, including those associated with real estate consolidation, system implementation and process changes, which could result in the identification and implementation of additional actions associated with Project Summit and incremental costs and benefits.
Exiting 2021
irm-20210630_g4.jpg
$375 million
(expected)

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We estimate that the implementation of Project Summit will result in total operating expenditures (“Restructuring Charges”) of approximately $450.0 million that primarily consist of: (1) employee severance costs; (2) internal costs associated with the development and implementation of Project Summit initiatives; (3) professional fees, primarily related to third party consultants who are assisting with the design and execution of various initiatives as well as project management activities and (4) system implementation and data conversion costs. The following table presents total Restructuring Charges related to Project Summit primarily related to employee severance costs, internal costs associated with the development and implementation of Project Summit initiatives and professional fees from the inception of Project Summit through June 30, 2021, and for the three and six months ended June 30, 2021:
TOTAL
From the Inception of Project Summit through June 30, 2021
$322,247$322.2 million
For the Three Months Ended June 30, 2021
$39,443$39.4 million
For the Six Months Ended June 30, 2021
$79,254$79.3 million
We have also incurred approximately $5.9 million and $10.0 million in capital expenditures related to Project Summit during the three and six months ended June 30, 2021 and approximately $20.1 million from the inception of Project Summit through June 30, 2021.
See Note 11 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for more information on the Restructuring Charges.
DIVESTMENTS
On June 7, 2021, as disclosed in Note 4 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report, we sold our Intellectual Property Management ("IPM") business, also known as our technology escrow services business, which we predominantly operated in the United States, for total gross consideration of approximately $217.2 million (the “IPM Divestment”). As described in Note 4 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report, the IPM Divestment does not meet the criteria to be reported as discontinued operations in our condensed consolidated financial statements. Our IPM business represented approximately $6.0 million and $14.2 million of total revenues and approximately $2.5 million and $6.8 million of total net income for the three and six months ended June 30, 2021, respectively. Our IPM business represented approximately $8.2 million and $16.5 million of total revenues and approximately $4.5 million and $9.7 million of total net income for the three and six months ended June 30, 2020, respectively.
CHANGES IMPACTING COMPARABILITY WITH PRIOR YEAR
During the fourth quarter of 2020, we made changes to the definitions of the following non-GAAP measures: Adjusted EBITDA, Adjusted EPS, FFO (Nareit) and FFO (Normalized) (each as defined below). These changes were implemented to align our definitions more closely with our peers. All prior periods have been recast to conform to these changes.

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GENERAL
RESULTS OF OPERATIONS - KEY TRENDS
•In spite of the COVID-19 pandemic, we have experienced relatively steady volume in our Global RIM Business segment, with organic storage rental revenue growth driven primarily by revenue management. We expect organic storage rental revenue growth to benefit from revenue management and volume, which we expect will be flat to slightly positive when compared to the prior year. We expect low single digit organic storage rental revenue growth for the remainder of 2021.
•Our organic service revenue growth is primarily due to increases in our service activity during the second quarter of 2021, particularly in regions where governments have lifted or eased restrictions on our customers’ non-essential business operations. While our service operations have increased from the reductions we experienced during the peak of the COVID-19 pandemic, future service revenues remain uncertain and will be dependent on the severity of the COVID-19 pandemic, including new variants of COVID-19 that may emerge.
Cost of sales (excluding depreciation and amortization) and Selling, general and administrative expenses for the six months ended June 30, 2021 consists of the following:
COST OF SALESSELLING, GENERAL AND ADMINISTRATIVE EXPENSES
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irm-20210630_g6.jpg
NON-GAAP MEASURES
ADJUSTED EBITDA
We define Adjusted EBITDA as net income (loss) before interest expense, net, provision (benefit) for income taxes, depreciation and amortization (inclusive of our share of Adjusted EBITDA from our unconsolidated joint ventures), and excluding certain items we do not believe to be indicative of our core operating results, specifically:
EXCLUDED
•Acquisition and Integration Costs (as defined below)
•Other (income) expense, net
•Restructuring Charges
•Stock-based compensation expense
•Intangible impairments
•COVID-19 Costs (as defined below)
•(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate)
Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenues. We also show Adjusted EBITDA and Adjusted EBITDA Margin for each of our reportable operating segments under “Results of Operations – Segment Analysis” below.
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Adjusted EBITDA excludes both interest expense, net and the provision (benefit) for income taxes. These expenses are associated with our capitalization and tax structures, which we do not consider when evaluating the operating profitability of our core operations. Adjusted EBITDA does not include depreciation and amortization expenses, in order to eliminate the impact of capital investments, which we evaluate by comparing capital expenditures to incremental revenue generated and as a percentage of total revenues. Adjusted EBITDA and Adjusted EBITDA Margin should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with accounting principles generally accepted in the United States of America (“GAAP”), such as operating income, net income (loss) or cash flows from operating activities (as determined in accordance with GAAP).
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (IN THOUSANDS):
THREE MONTHS ENDED JUNE 30,
SIX MONTHS ENDED JUNE 30,
2021202020212020
Net Income (Loss)$276,522 $(7,113)$323,153 $57,779 
Add/(Deduct):
Interest expense, net105,220 103,456 209,642 209,105 
Provision (benefit) for income taxes110,416 9,683 125,056 19,370 
Depreciation and amortization166,685 163,850 332,327 326,434 
Acquisition and Integration Costs(1)
2,277 — 2,277 — 
Restructuring Charges39,443 39,298 79,254 80,344 
Intangible impairments— — — 23,000 
(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate)(128,935)(1,275)(133,386)(2,330)
Other (income) expense, net, excluding our share of losses (gains) from our unconsolidated joint ventures(189,605)23,239 (187,484)(21,792)
Stock-based compensation expense(2)
22,536 18,880 33,269 23,991 
COVID-19 Costs(3)
— 9,285 — 9,285 
Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures1,072 159 2,088 275 
Adjusted EBITDA$405,631 $359,462 $786,196 $725,461 
(1) Represent operating expenditures directly associated with the closing and integration activities of our business acquisitions that have closed, or are highly probable of closing, and include (i) advisory, legal and professional fees to complete business acquisitions and (ii) costs to integrate acquired businesses into our existing operations, including move, severance, facility upgrade and system integration costs (collectively, "Acquisition and Integration Costs"). Acquisition and Integration Costs do not include costs associated with the formation of joint ventures or costs associated with the acquisition of customer relationships.
(2) Stock-based compensation expense related to Project Summit is included within Restructuring Charges for the three and six months ended June 30, 2021 and 2020.
(3) Costs that are incremental and directly attributable to the COVID-19 pandemic which are not expected to recur once the pandemic ends ("COVID-19 Costs"). These costs include the purchase of personal protective equipment for our employees and incremental cleaning costs of our facilities, among other direct costs.
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ADJUSTED EPS
We define Adjusted EPS as reported earnings per share fully diluted from net income (loss) attributable to Iron Mountain Incorporated (inclusive of our share of adjusted losses (gains) from our unconsolidated joint ventures) and excluding certain items, specifically:
 
EXCLUDED
•Acquisition and Integration Costs
•Restructuring Charges
•Intangible impairments
•(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate)
•Other (income) expense, net
•Stock-based compensation expense
•COVID-19 Costs
•Tax impact of reconciling items and discrete tax items
   
We do not believe these excluded items to be indicative of our ongoing operating results, and they are not considered when we are forecasting our future results. We believe Adjusted EPS is of value to our current and potential investors when comparing our results from past, present and future periods.
RECONCILIATION OF REPORTED EPS—FULLY DILUTED FROM NET INCOME (LOSS) ATTRIBUTABLE TO IRON MOUNTAIN INCORPORATED TO ADJUSTED EPS—FULLY DILUTED FROM NET INCOME (LOSS) ATTRIBUTABLE TO IRON MOUNTAIN INCORPORATED:
THREE MONTHS ENDED
JUNE 30,		SIX MONTHS ENDED
JUNE 30,
2021202020212020
Reported EPS—Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated
$0.95 $(0.02)$1.11 $0.20 
Add/(Deduct):
Acquisition and Integration Costs0.01 — 0.01 — 
Restructuring Charges0.14 0.14 0.27 0.28 
Intangible impairments— — — 0.08 
(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate)(0.44)— (0.46)(0.01)
Other (income) expense, net, excluding our share of losses (gains) from our unconsolidated joint ventures(0.65)0.08 (0.65)(0.08)
Stock-based compensation expense0.08 0.07 0.11 0.08 
COVID-19 Costs— 0.03 — 0.03 
Tax impact of reconciling items and discrete tax items(1)
0.31 (0.02)0.30 (0.04)
Income (Loss) Attributable to Noncontrolling Interests— — 0.01 — 
Adjusted EPS—Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated(2)
$0.38 $0.27 $0.70 $0.55 
(1)The difference between our effective tax rates and our structural tax rate (or adjusted effective tax rates) for the three and six months ended June 30, 2021 and 2020 is primarily due to (i) the reconciling items above, which impact our reported net income (loss) before provision (benefit) for income taxes and (ii) other discrete tax items. Our structural tax rate for purposes of the calculation of Adjusted EPS for the three and six months ended June 30, 2021 and 2020 was 16.2% and 16.7%, respectively.
(2)Columns may not foot due to rounding.

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FFO (NAREIT) AND FFO (NORMALIZED)
Funds from operations (“FFO”) is defined by the National Association of Real Estate Investment Trusts (“Nareit”) as net income (loss) excluding depreciation on real estate assets, gains on sale of real estate, net of tax, and amortization of data center leased-based intangibles and adjusting for our share of reconciling items from our unconsolidated joint ventures from FFO (“FFO (Nareit)”). FFO (Nareit) does not give effect to real estate depreciation because these amounts are computed, under GAAP, to allocate the cost of a property over its useful life. Because values for well-maintained real estate assets have historically increased or decreased based upon prevailing market conditions, we believe that FFO (Nareit) provides investors with a clearer view of our operating performance. Our most directly comparable GAAP measure to FFO (Nareit) is net income (loss).
Although Nareit has published a definition of FFO, we modify FFO (Nareit), as is common among REITs seeking to provide financial measures that most meaningfully reflect their particular business (“FFO (Normalized)”). Our definition of FFO (Normalized) excludes certain items included in FFO (Nareit) that we believe are not indicative of our core operating results, specifically:
   
EXCLUDED
•Acquisition and Integration Costs
•Restructuring Charges
•Intangible impairments
•(Gain) loss on disposal/write-down of property, plant and equipment, net (excluding real estate)
•Other (income) expense, net
•Stock-based compensation expense
•COVID-19 Costs
•Real estate financing lease depreciation
•Tax impact of reconciling items and discrete tax items

   
RECONCILIATION OF NET INCOME (LOSS) TO FFO (NAREIT) AND FFO (NORMALIZED) (IN THOUSANDS):
THREE MONTHS ENDED
JUNE 30,		SIX MONTHS ENDED
JUNE 30,
2021202020212020
Net Income (Loss)$276,522 $(7,113)$323,153 $57,779 
Add/(Deduct):
Real estate depreciation74,784 75,719 150,831 152,306 
Gain on sale of real estate, net of tax(102,476)(1,089)(106,781)(1,581)
Data center lease-based intangible assets amortization10,482 10,379 20,965 21,732 
FFO (Nareit)259,312 77,896 388,168 230,236 
Add/(Deduct):
Acquisition and Integration Costs2,277 — 2,277 — 
Restructuring Charges39,443 39,298 79,254 80,344 
Intangible impairments— — — 23,000 
(Gain) loss on disposal/write-down of property, plant and equipment, net (excluding real estate)(1,076)(155)(1,222)(399)
Other (income) expense, net, excluding our share of losses (gains) from our unconsolidated joint ventures(1)
(189,605)23,239 (187,484)(21,792)
Stock-based compensation expense22,536 18,880 33,269 23,991 
COVID-19 Costs— 9,285 — 9,285 
Real estate financing lease depreciation3,515 3,431 7,051 6,594 
Tax impact of reconciling items and discrete tax items(2)
63,570 (5,690)60,494 (12,613)
Our share of FFO (Normalized) reconciling items from our unconsolidated joint ventures(9)(10)(13)(30)
FFO (Normalized)$199,963 $166,174 $381,794 $338,616 
(1)Includes foreign currency transaction losses (gains), net and other, net. See Note 2.m. to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding the components of Other (income) expense, net.
(2)Represents the tax impact of (i) the reconciling items above, which impact our reported net income (loss) before provision (benefit) for income taxes and (ii) other discrete tax items. Discrete tax items resulted in a (benefit) provision for income taxes of $13.3 million and $14.4 million for the three and six months ended June 30, 2021, respectively, and $2.3 million and $2.2 million for the three and six months ended June 30, 2020, respectively.
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CRITICAL ACCOUNTING ESTIMATES
Our discussion and analysis of our financial condition and results of operations are based upon our Condensed Consolidated Financial Statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires us to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities at the date of the financial statements and for the period then ended. On an ongoing basis, we evaluate the estimates used. We base our estimates on historical experience, actuarial estimates, current conditions and various other assumptions that we believe to be reasonable under the circumstances. These estimates form the basis for making judgments about the carrying values of assets and liabilities and are not readily apparent from other sources. Actual results may differ from these estimates. Our critical accounting estimates include the following, which are listed in no particular order:
•Revenue Recognition
•Accounting for Acquisitions
•Impairment of Tangible and Intangible Assets
•Income Taxes
Further detail regarding our critical accounting estimates can be found in “Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report, and the Consolidated Financial Statements and the Notes included therein. We have determined that no material changes concerning our critical accounting estimates have occurred since December 31, 2020.
RESULTS OF OPERATIONS
COMPARISON OF THE THREE AND SIX MONTHS ENDED JUNE 30, 2021 TO THE THREE AND SIX MONTHS ENDED JUNE 30, 2020 (IN THOUSANDS):
THREE MONTHS ENDED JUNE 30,DOLLAR
CHANGE		PERCENTAGE
CHANGE
20212020
Revenues$1,119,756$982,239$137,517 14.0 %
Operating Expenses813,828850,513(36,685)(4.3)%
Operating Income305,928131,726174,202 132.2 %
Other Expenses, Net29,406138,839(109,433)(78.8)%
Net Income (Loss) 276,522(7,113)283,635 3,987.6 %
Net Income (Loss) Attributable to Noncontrolling Interests1,237(27)1,264 4,681.5 %
Net Income (Loss) Attributable to Iron Mountain Incorporated$275,285$(7,086)$282,371 3,984.9 %
Adjusted EBITDA(1)
$405,631$359,462$46,169 12.8 %
Adjusted EBITDA Margin(1)
36.2 %36.6 %
SIX MONTHS ENDED JUNE 30,DOLLAR
CHANGE		PERCENTAGE
CHANGE
20212020
Revenues$2,201,796$2,050,970$150,826 7.4 %
Operating Expenses1,725,4621,781,742(56,280)(3.2)%
Operating Income476,334269,228207,106 76.9 %
Other Expenses, Net153,181211,449(58,268)(27.6)%
Net Income (Loss) 323,15357,779265,374 459.3 %
Net Income (Loss) Attributable to Noncontrolling Interests2,2658901,375 154.5 %
Net Income (Loss) Attributable to Iron Mountain Incorporated$320,888$56,889$263,999 464.1 %
Adjusted EBITDA(1)
$786,196$725,461$60,735 8.4 %
Adjusted EBITDA Margin(1)
35.7 %35.4 %
(1)See “Non-GAAP Measures—Adjusted EBITDA” in this Quarterly Report for the definitions of Adjusted EBITDA and Adjusted EBITDA Margin, reconciliation of Net Income (Loss) to Adjusted EBITDA and a discussion of why we believe these non-GAAP measures provide relevant and useful information to our current and potential investors.

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REVENUES
Consolidated revenues consist of the following (in thousands):
THREE MONTHS ENDED JUNE 30,PERCENTAGE CHANGE
20212020DOLLAR
CHANGE		ACTUAL
CONSTANT
CURRENCY(1)
ORGANIC
GROWTH(2)
IMPACT OF
ACQUISITIONS
Storage Rental$718,272 $676,956 $41,316 6.1 %2.7 %2.5 %0.2 %
Service401,484 305,283 96,201 31.5 %26.9 %25.5 %1.4 %
Total Revenues$1,119,756 $982,239 $137,517 14.0 %10.2 %9.7 %0.5 %
SIX MONTHS ENDED
JUNE 30,		PERCENTAGE CHANGE
20212020DOLLAR
CHANGE		ACTUAL
CONSTANT
CURRENCY(1)
ORGANIC
GROWTH(2)
IMPACT OF
ACQUISITIONS
Storage Rental$1,426,328 $1,360,503 $65,825 4.8 %2.3 %2.1 %0.2 %
Service775,468 690,467 85,001 12.3 %9.4 %8.7 %0.7 %
Total Revenues$2,201,796 $2,050,970 $150,826 7.4 %4.6 %4.3 %0.3 %
(1)Constant currency growth rates, which are a non-GAAP measure, are calculated by translating the 2020 results at the 2021 average exchange rates.
(2)Our organic revenue growth rate, which is a non-GAAP measure, represents the year-over-year growth rate of our revenues excluding the impact of business acquisitions, divestitures and foreign currency exchange rate fluctuations. Our organic revenue growth rate includes the impact of acquisitions of customer relationships.
TOTAL REVENUES
For the six months ended June 30, 2021, the increase in reported consolidated revenue was driven by reported storage rental revenue growth and reported service revenue growth. Foreign currency exchange rate fluctuations increased our reported consolidated revenue growth rate for the six months ended June 30, 2021 by 2.8% compared to the prior year period.
STORAGE RENTAL REVENUES AND SERVICE REVENUES
Primary factors influencing the change in reported consolidated storage rental revenue and reported service revenues for the six months ended June 30, 2021 compared to the six months ended June 30, 2020 include the following:
STORAGE RENTAL REVENUES
•organic storage rental revenue growth driven by increased volume in faster growing markets and our Global Data Center Business segment, and revenue management;
•a 1.2% increase in total global volume (excluding acquisitions, total global volume increased 0.5%); and
•an increase of $34.4 million due to foreign currency exchange rate fluctuations.
SERVICE REVENUES
•an increase in service activity levels, particularly in regions where governments have lifted or eased COVID-19 related restrictions on our customers' non-essential business operations;
•organic service revenue growth reflecting increased service activity levels; and
•an increase of $18.7 million due to foreign currency exchange rate fluctuations.

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Part I. Financial Information
OPERATING EXPENSES
COST OF SALES
Consolidated Cost of sales (excluding depreciation and amortization) consists of the following expenses (in thousands):
THREE MONTHS ENDED JUNE 30,PERCENTAGE
CHANGE		% OF
CONSOLIDATED
REVENUES		PERCENTAGE
CHANGE
(FAVORABLE)/
UNFAVORABLE
20212020DOLLAR
CHANGE		ACTUALCONSTANT
CURRENCY		20212020
Labor$199,084 $164,672 $34,412 20.9 %16.8 %17.8 %16.8 %1.0 %
Facilities196,098 173,618 22,480 12.9 %8.7 %17.5 %17.7 %(0.2)%
Transportation37,084 28,162 8,922 31.7 %26.4 %3.3 %2.9 %0.4 %
Product Cost of Sales and Other42,313 32,593 9,720 29.8 %24.8 %3.8 %3.3 %0.5 %
COVID-19 Costs— 7,648 (7,648)(100.0)%(100.0)%— %0.8 %(0.8)%
Total Cost of sales$474,579 $406,693 $67,886 16.7 %12.5 %42.4 %41.4 %1.0 %
SIX MONTHS
ENDED JUNE 30,		PERCENTAGE
CHANGE		% OF
CONSOLIDATED
REVENUES		PERCENTAGE
CHANGE
(FAVORABLE)/
UNFAVORABLE
20212020DOLLAR
CHANGE		ACTUALCONSTANT
CURRENCY		20212020
Labor$388,480 $368,518 $19,962 5.4 %2.9 %17.6 %18.0 %(0.4)%
Facilities391,061 358,150 32,911 9.2 %6.1 %17.8 %17.5 %0.3 %
Transportation67,927 67,100 827 1.2 %(2.0)%3.1 %3.3 %(0.2)%
Product Cost of Sales and Other79,020 72,198 6,822 9.4 %6.2 %3.6 %3.5 %0.1 %
COVID-19 Costs— 7,648 (7,648)(100.0)%(100.0)%— %0.4 %(0.4)%
Total Cost of sales$926,488 $873,614 $52,874 6.1 %3.2 %42.1 %42.6 %(0.5)%
Primary factors influencing the change in reported consolidated Cost of sales for the six months ended June 30, 2021 compared to the six months ended June 30, 2020 include the following:
•an increase in labor costs driven by an increase in service activity, particularly in regions where governments have lifted or eased COVID-19 related restrictions on our customers' non-essential business operations, partially offset by benefits from Project Summit;
•an increase in facilities expenses driven by increases in rent expense, reflecting the impact from our recent sale-leaseback activity during the second half of 2020 and first half of 2021 (which we expect to continue for the remainder of 2021 as we continue to look for future opportunities to monetize a small portion of our owned industrial real estate assets as part of our ongoing capital recycling program), as well as increases in property taxes, insurance and building maintenance costs; and
•an increase of $24.0 million due to foreign currency exchange rate fluctuations.
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SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Consolidated Selling, general and administrative expenses consists of the following expenses (in thousands):
THREE MONTHS ENDED JUNE 30,PERCENTAGE CHANGE% OF
CONSOLIDATED
REVENUES		PERCENTAGE
CHANGE
(FAVORABLE)/
UNFAVORABLE
20212020DOLLAR
CHANGE		ACTUALCONSTANT
CURRENCY		20212020
General, Administrative and Other$189,217 $187,925 $1,292 0.7 %(1.5)%16.9 %19.1 %(2.2)%
Sales, Marketing and Account Management70,562 52,385 18,177 34.7 %30.2 %6.3 %5.3 %1.0 %
COVID-19 Costs— 1,637 (1,637)(100.0)%(100.0)%— %0.2 %(0.2)%
Total Selling, general and administrative expenses$259,779 $241,947 $17,832 7.4 %4.8 %23.2 %24.6 %(1.4)%
SIX MONTHS
ENDED JUNE 30,		PERCENTAGE CHANGE% OF
CONSOLIDATED
REVENUES		PERCENTAGE
CHANGE
(FAVORABLE)/
UNFAVORABLE
20212020DOLLAR
CHANGE		ACTUALCONSTANT
CURRENCY		20212020
General, Administrative and Other$378,210 $367,199 $11,011 3.0 %1.1 %17.2 %17.9 %(0.7)%
Sales, Marketing and Account Management140,292 111,844 28,448 25.4 %22.3 %6.4 %5.5 %0.9 %
COVID-19 Costs— 1,637 (1,637)(100.0)%(100.0)%— %0.1 %(0.1)%
Total Selling, general and administrative expenses$518,502 $480,680 $37,822 7.9 %5.8 %23.5 %23.4 %0.1 %
Primary factors influencing the change in reported consolidated Selling, general and administrative expenses for the six months ended June 30, 2021 compared to the six months ended June 30, 2020 include the following:
•an increase in general, administrative and other expenses, driven by higher wages and benefits, stock-based compensation expense and bonus compensation accruals, partially offset by other employee related costs, reflecting ongoing cost containment measures and benefits from Project Summit, as well as lower professional fees and bad debt expense;
•an increase in sales, marketing and account management expenses, driven by higher compensation expense, primarily reflecting increased salaries and sales commissions, as well as increased marketing costs; and
•foreign currency exchange rate fluctuations increased reported consolidated Selling, general and administrative expenses by $9.6 million.
DEPRECIATION AND AMORTIZATION
Depreciation expense increased by $0.3 million, or 0.1%, for the six months ended June 30, 2021 compared to the prior year period. See Note 2.h. to Notes to Consolidated Financial Statements included in our Annual Report for additional information regarding the useful lives over which our property, plant and equipment is depreciated.
Amortization expense increased by $5.6 million, or 5.6%, for the six months ended June 30, 2021 compared to the prior year period.
ACQUISITION AND INTEGRATION COSTS
Acquisition and Integration Costs for the six months ended June 30, 2021 were approximately $2.3 million and primarily consist of legal and professional fees.
RESTRUCTURING CHARGES
Restructuring Charges for the six months ended June 30, 2021 and 2020 were approximately $79.3 million and $80.3 million, respectively, and primarily consist of employee severance costs and professional fees associated with Project Summit.
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Part I. Financial Information
(GAIN) LOSS ON DISPOSAL/WRITE-DOWN OF PROPERTY, PLANT AND EQUIPMENT, NET
Consolidated gain on disposal/write-down of property, plant and equipment, net for the three and six months ended June 30, 2021 was approximately $128.9 million and $133.4 million, respectively. The gains for the three and six months ended June 30, 2021 primarily consisted of gains of approximately $127.4 million associated with the sale-leaseback transactions of five facilities in the United Kingdom, as part of our program to monetize a small portion of our industrial assets.
Consolidated gain on disposal/write-down of property, plant and equipment, net for the three and six months ended June 30, 2020 was approximately $1.3 million and $2.3 million, respectively.
OTHER EXPENSES, NET
INTEREST EXPENSE, NET
Consolidated interest expense, net increased by $0.5 million, to $209.6 million in the six months ended June 30, 2021 from $209.1 million in the prior year period. See Note 6 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding our indebtedness.
OTHER (INCOME) EXPENSE, NET
Consolidated other (income) expense, net consists of the following (in thousands):
THREE MONTHS ENDED
JUNE 30,		DOLLAR
CHANGE		SIX MONTHS ENDED
JUNE 30,		DOLLAR CHANGE
DESCRIPTION2021202020212020
Foreign currency transaction losses (gains), net$4,729 $1,471 $3,258 $7,043 $(35,928)$42,971 
Debt extinguishment expense— 17,040 (17,040)— 17,040 (17,040)
Other, net(1)
(190,959)7,189 (198,148)(188,560)1,862 (190,422)
Other (Income) Expense, Net$(186,230)$25,700 $(211,930)$(181,517)$(17,026)$(164,491)
(1)Other, net for the three and six months ended June 30, 2021 is primarily comprised of (a) a gain of approximately $181.2 million associated with our IPM Divestment and (b) a gain of approximately $20.3 million associated with the loss of control and related deconsolidation, as of May 18, 2021, of one of our wholly owned Netherlands subsidiaries, for which we had value-added tax liability exposure that was recorded in 2019.
PROVISION FOR INCOME TAXES
We provide for income taxes during interim periods based on our estimate of the effective tax rate for the year.
Our effective tax rates for the three and six months ended June 30, 2021 and 2020 are as follows:
 THREE MONTHS ENDED
JUNE 30,		SIX MONTHS ENDED
JUNE 30,
2021(1)
2020(2)
2021(1)
2020(3)
Effective Tax Rate28.5 %— %27.9 %25.1 %
(1)The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three and six months ended June 30, 2021 were the impacts of differences in the tax rates at which our foreign earnings are subject and a discrete tax expense of approximately $12.0 million primarily resulting from a tax law change in the United Kingdom, partially offset by the benefits derived from the dividends paid deduction.
(2)For the three months ended June 30, 2020, we had a provision for income taxes of $9.7 million and net income before provision for income taxes of $2.6 million; as such, our effective tax rate is not meaningful.
(3)The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the six months ended June 30, 2020 were the impacts of differences in the tax rates at which our foreign earnings are subject, partially offset by the benefits derived from the dividends paid deduction.

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Part I. Financial Information
NET INCOME (LOSS) AND ADJUSTED EBITDA
The following table reflects the effect of the foregoing factors on our consolidated Net Income (Loss) and Adjusted EBITDA (in thousands):
THREE MONTHS ENDED JUNE 30,DOLLAR
CHANGE		PERCENTAGE CHANGE
20212020
Net Income (Loss)$276,522 $(7,113)$283,635 3,987.6 %
Net Income (Loss) as a percentage of Consolidated Revenue24.7 %(0.7)%
Adjusted EBITDA$405,631 $359,462 $46,169 12.8 %
Adjusted EBITDA Margin36.2 %36.6 %
SIX MONTHS ENDED JUNE 30,DOLLAR CHANGEPERCENTAGE CHANGE
20212020
Net Income (Loss)$323,153 $57,779 $265,374 459.3 %
Net Income (Loss) as a percentage of Consolidated Revenue14.7 %2.8 %
Adjusted EBITDA$786,196 $725,461 $60,735 8.4 %
Adjusted EBITDA Margin35.7 %35.4 %
Consolidated Adjusted EBITDA Margin for the six months ended June 30, 2021 increased by 30 basis points compared to the same prior year period, reflecting improved service revenue trends, benefits from Project Summit, revenue management and ongoing cost containment measures, partially offset by higher compensation expense and sales commissions.
↑ INCREASED BY $60.7 MILLION OR 8.4%
Consolidated Adjusted EBITDA
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SEGMENT ANALYSIS
See Note 9 to Notes to Consolidated Financial Statements included in our Annual Report for a description of our reportable operating segments.
GLOBAL RIM BUSINESS (IN THOUSANDS)
THREE MONTHS ENDED
 JUNE 30,		PERCENTAGE CHANGE
DOLLAR
CHANGE		ACTUALCONSTANT
CURRENCY		ORGANIC
GROWTH		IMPACT OF ACQUISITIONS
20212020
Storage Rental$617,078$584,402$32,676 5.6 %1.9 %1.6 %0.3 %
Service375,854292,70083,154 28.4 %24.0 %24.0 %— %
Segment Revenue$992,932$877,102$115,830 13.2 %9.3 %9.1 %0.2 %
Segment Adjusted EBITDA$430,308$383,816$46,492 
Segment Adjusted EBITDA Margin 43.3 %43.8 %
SIX MONTHS ENDED
JUNE 30,		PERCENTAGE CHANGE
DOLLAR
CHANGE		ACTUALCONSTANT
CURRENCY		ORGANIC
GROWTH		IMPACT OF ACQUISITIONS
20212020
Storage Rental$1,227,772$1,174,415$53,357 4.5 %1.8 %1.6 %0.2 %
Service732,454659,10673,348 11.1 %8.3 %8.2 %0.1 %
Segment Revenue$1,960,226$1,833,521$126,705 6.9 %4.1 %4.0 %0.1 %
Segment Adjusted EBITDA$838,870$775,787$63,083 
Segment Adjusted EBITDA Margin 42.8 %42.3 %
SIX MONTHS ENDED YEAR OVER YEAR SEGMENT ANALYSIS: GLOBAL RIM BUSINESS (IN MILLIONS)

Storage Rental
Revenue		Service
Revenue		Segment
Revenue		Segment Adjusted
EBITDA
irm-20210630_g8.jpgirm-20210630_g9.jpg    
Adjusted EBITDA Margin in our Global RIM Business segment for the three months ended June 30, 2021 decreased by 50 basis points compared to the prior year period primarily driven by a change in revenue mix.
Primary factors influencing the change in revenue and Adjusted EBITDA Margin in our Global RIM Business segment for the six months ended June 30, 2021 compared to the prior year period include the following:
•organic storage rental revenue growth driven by revenue management and volume;
•organic service revenue growth mainly driven by increased traditional service activity levels, particularly in regions where governments have lifted or eased COVID-19 related restrictions on our customers' non-essential business operations, and growth in our Global Digital Solutions and Secure Information Technology Asset Disposition businesses;
•an increase in revenue of $49.1 million due to foreign currency exchange rate fluctuations;
•a 1.0% increase in global records management volume (excluding acquisitions, global records management volume increased 0.3%); and
•a 50 basis point increase in Adjusted EBITDA Margin primarily driven by benefits from Project Summit, revenue management, ongoing cost containment measures and lower bad debt expense, partially offset by increases in compensation, benefits, sales commissions and rent expense.
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GLOBAL DATA CENTER BUSINESS (IN THOUSANDS)
THREE MONTHS ENDED
JUNE 30,		PERCENTAGE CHANGE
DOLLAR
CHANGE		ACTUALCONSTANT
CURRENCY		ORGANIC
GROWTH		IMPACT OF ACQUISITIONS
20212020
Storage Rental$71,237$63,812$7,425 11.6 %9.7 %9.7 %— %
Service5,7402,9562,784 94.2 %90.7 %90.7 %— %
Segment Revenue$76,977$66,768$10,209 15.3 %13.3 %13.3 %— %
Segment Adjusted EBITDA$33,432$30,558$2,874 
Segment Adjusted EBITDA Margin43.4 %45.8 %
SIX MONTHS ENDED
JUNE 30,		PERCENTAGE CHANGE
DOLLAR
CHANGE		ACTUALCONSTANT
CURRENCY		ORGANIC
GROWTH		IMPACT OF ACQUISITIONS
20212020
Storage Rental$138,394$128,407$9,987 7.8 %6.1 %6.1 %— %
Service9,6915,7183,973 69.5 %66.2 %66.2 %— %
Segment Revenue$148,085$134,125$13,960 10.4 %8.6 %8.6 %— %
Segment Adjusted EBITDA$63,864$61,454$2,410 
Segment Adjusted EBITDA Margin43.1 %45.8 %
SIX MONTHS ENDED YEAR OVER YEAR SEGMENT ANALYSIS: GLOBAL DATA CENTER BUSINESS (IN MILLIONS)
Storage Rental
Revenue		Service
Revenue		Segment
Revenue		Segment Adjusted
EBITDA
irm-20210630_g10.jpgirm-20210630_g11.jpg
Primary factors influencing the change in revenue, Adjusted EBITDA and Adjusted EBITDA Margin in our Global Data Center Business segment for the six months ended June 30, 2021 compared to the prior year period include the following:
•organic storage rental revenue growth from leases signed during the first half of 2021 and in prior periods, and service revenue growth from project revenue, partially offset by churn of 420 basis points;
•an increase in Adjusted EBITDA primarily driven by organic storage rental revenue growth; and
•a 270 basis point decrease in Adjusted EBITDA Margin reflecting a change in revenue mix due to lower margin project revenue during the period, which is expected to have a temporary impact on segment margins.

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CORPORATE AND OTHER BUSINESS (IN THOUSANDS)
THREE MONTHS ENDED
JUNE 30,		PERCENTAGE CHANGE
DOLLAR
CHANGE		ACTUALCONSTANT
CURRENCY		ORGANIC
GROWTH		IMPACT OF ACQUISITIONS
20212020
Storage Rental$29,957$28,742$1,215 4.2 %2.9 %5.2 %(2.3)%
Service19,8909,62710,263 106.6 %93.8 %50.3 %43.5 %
Segment Revenue$49,847$38,369$11,478 29.9 %26.5 %17.7 %8.8 %
Segment Adjusted EBITDA$(58,109)$(54,912)$(3,197)
Segment Adjusted EBITDA as a percentage of Consolidated Revenue(5.2)%(5.6)%
SIX MONTHS ENDED
JUNE 30,		PERCENTAGE CHANGE
DOLLAR
CHANGE		ACTUALCONSTANT
CURRENCY		ORGANIC
GROWTH		IMPACT OF ACQUISITIONS
20212020
Storage Rental$60,162$57,681$2,481 4.3 %3.1 %4.3 %(1.2)%
Service33,32325,6437,680 29.9 %24.8 %8.0 %16.8 %
Segment Revenue$93,485$83,324$10,161 12.2 %9.9 %5.5 %4.4 %
Segment Adjusted EBITDA$(116,538)$(111,780)$(4,758)
Segment Adjusted EBITDA as a percentage of Consolidated Revenue(5.3)%(5.5)%
Primary factors influencing the change in revenue and Adjusted EBITDA in our Corporate and Other Business segment for the six months ended June 30, 2021 compared to the prior year period include the following:
•organic service revenue growth mainly driven by increased service activity levels in our Fine Arts business, particularly in regions where governments have lifted or eased COVID-19 related restrictions on our customers' non-essential business operations; and
•a decrease in Adjusted EBITDA driven by higher wages and benefits due to normal inflation and higher corporate bonus compensation accruals, partially offset by benefits from Project Summit and ongoing cost containment measures.
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LIQUIDITY AND CAPITAL RESOURCES
GENERAL
We expect to meet our short-term and long-term cash flow requirements through cash generated from operations, cash on hand, borrowings under our Credit Agreement (as defined below) and proceeds from monetizing a small portion of our total industrial real estate assets in the future, as well as other potential financings (such as the issuance of debt or equity). Our cash flow requirements, both in the near and long term, include, but are not limited to, capital expenditures, the repayment of outstanding debt, shareholder dividends, Project Summit initiatives, potential and pending business acquisitions and investments and normal business operation needs.
PROJECT SUMMIT
As disclosed above, in October 2019, we announced Project Summit. We estimate that the implementation of Project Summit will result in total Restructuring Charges of $450.0 million. From the inception of Project Summit through June 30, 2021, we have incurred approximately $322.2 million of Restructuring Charges related to Project Summit, primarily related to employee severance costs, internal costs associated with the development and implementation of Project Summit initiatives and professional fees. From the inception of Project Summit through June 30, 2021, we have also incurred $20.1 million of capital expenditures.
CASH FLOWS
The following is a summary of our cash balances and cash flows (in thousands) as of and for the six months ended June 30,
20212020
Cash Flows from Operating Activities $389,202 $439,074 
Cash Flows from Investing Activities (7,351)(344,211)
Cash Flows from Financing Activities (270,939)616,912 
Cash and Cash Equivalents, including Restricted Cash, End of Period315,928 907,180 
A. CASH FLOWS FROM OPERATING ACTIVITIES
For the six months ended June 30, 2021, net cash flows provided by operating activities decreased by $49.9 million compared to the prior year period, primarily due to a decrease in cash from working capital of $40.9 million, primarily related to the timing of accounts payable and accrued expenses and collections of accounts receivable and a decrease in net income (including non-cash charges) of $9.0 million.
B. CASH FLOWS FROM INVESTING ACTIVITIES
Our significant investing activity during the six months ended June 30, 2021 is highlighted below:
•We paid cash for capital expenditures of $295.6 million. Additional details of our capital spending are included in the “Capital Expenditures" section below.
•We received $209.7 million in proceeds from sales of property, plant and equipment, primarily related to proceeds from sale-leaseback transactions of five facilities in the United Kingdom during the second quarter of 2021.
•We received $213.9 million in net proceeds from the IPM Divestment.
C. CASH FLOWS FROM FINANCING ACTIVITIES
Our significant financing activities during the six months ended June 30, 2021 included:
•Net proceeds of $143.4 million primarily associated with borrowings under the Accounts Receivable Securitization Program and Revolving Credit Facility.
•Repurchase of noncontrolling interest of $75.0 million.
•Payment of dividends in the amount of $359.8 million on our common stock.

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CAPITAL EXPENDITURES
During 2020, a portion of what was previously categorized as Non-Real Estate Growth Capital Expenditures was recategorized as Real Estate Growth Capital Expenditures and the remaining portion was recategorized as Recurring Capital Expenditures. In addition, capital expenditures associated with restructuring (including Project Summit) and integration of acquisitions, which was previously categorized as recurring capital expenditures, have been recategorized as Innovation and Other. We have reclassified the categorization of our prior year capital expenditures to conform with our current presentation.
The following table presents our capital spend for the six months ended June 30, 2021 and 2020, organized by the type of the spending as described in our Annual Report (in thousands):
 SIX MONTHS ENDED JUNE 30,
NATURE OF CAPITAL SPEND20212020
Growth Investment Capital Expenditures:
Data Center$136,446 $91,831 
Real Estate39,525 28,624 
Innovation and Other9,144 2,508 
Total Growth Investment Capital Expenditures185,115 122,963 
Recurring Capital Expenditures:
Real Estate29,813 17,295 
Non-Real Estate31,656 22,570 
Data Center3,023 4,247 
Total Recurring Capital Expenditures64,492 44,112 
Total Capital Spend (on accrual basis)249,607 167,075 
Net increase (decrease) in prepaid capital expenditures116 1,569 
Net decrease (increase) in accrued capital expenditures45,863 31,514 
Total Capital Spend (on cash basis)$295,586 $200,158 
Excluding capital expenditures associated with potential future acquisitions, we expect total capital expenditures of approximately $550.0 million for the year ending December 31, 2021. Of this, we expect our capital expenditures for growth investment to be approximately $410.0 million, and our recurring capital expenditures to be approximately $140.0 million. Our capital expenditures for growth investment includes Global Data Center Business development spend of approximately $300.0 million.
DIVIDENDS
See Note 8 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for a listing of dividends that we declared during the first six months of 2021 and fiscal year 2020.
On August 5, 2021, we declared a dividend to our stockholders of record as of September 15, 2021 of $0.6185 per share, payable on October 6, 2021.
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FINANCIAL INSTRUMENTS AND DEBT
Financial instruments that potentially subject us to credit risk consist principally of cash and cash equivalents (including money market funds and time deposits) and accounts receivable. The only significant concentration of liquid investments as of June 30, 2021 is related to cash and cash equivalents. See Note 2.f. to Notes to the Condensed Consolidated Financial Statements included in this Quarterly Report for information on our money market funds and time deposits.
Long-term debt as of June 30, 2021 is as follows (in thousands):
 JUNE 30, 2021
 DEBT (INCLUSIVE OF DISCOUNT)UNAMORTIZED DEFERRED FINANCING COSTSCARRYING AMOUNT
Revolving Credit Facility$— $(6,896)$(6,896)
Term Loan A209,375 — 209,375 
Term Loan B676,234 (5,620)670,614 
Australian Dollar Term Loan 233,754 (1,130)232,624 
UK Bilateral Revolving Credit Facility193,701 (939)192,762 
37/8% GBP Senior Notes due 2025 (the “GBP Notes”)
553,430 (4,441)548,989 
47/8% Senior Notes due 2027 (the “47/8% Notes due 2027”)(1)
1,000,000 (8,887)991,113 
51/4% Senior Notes due 2028 (the “51/4% Notes due 2028”)(1)
825,000 (7,971)817,029 
5% Senior Notes due 2028 (the “5% Notes”)(1)
500,000 (5,125)494,875 
47/8% Senior Notes due 2029 (the “47/8% Notes due 2029”)(1)
1,000,000 (11,934)988,066 
51/4% Senior Notes due 2030 (the “51/4 Notes due 2030”)(1)
1,300,000 (13,664)1,286,336 
41/2% Senior Notes due 2031 (the “41/2 Notes”)(1)
1,100,000 (12,026)1,087,974 
55/8% Senior Notes due 2032 (the “55/8% Notes”)(1)
600,000 (6,437)593,563 
Real Estate Mortgages, Financing Lease Liabilities and Other485,244 (954)484,290 
Accounts Receivable Securitization Program276,800 (512)276,288 
Total Long-term Debt8,953,538 (86,536)8,867,002 
Less Current Portion(106,274)— (106,274)
Long-term Debt, Net of Current Portion$8,847,264 $(86,536)$8,760,728 
(1)Collectively, the “Parent Notes".
See Note 6 to Notes to Consolidated Financial Statements included in our Annual Report and Note 6 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding our long-term debt.
UK BILATERAL REVOLVING CREDIT FACILITY
On May 25, 2021, Iron Mountain (UK) PLC and Iron Mountain (UK) Data Centre Limited entered into an amendment to the UK Bilateral Facility with Barclays Bank PLC to (i) modify the interest rate from LIBOR plus 2.25% to LIBOR plus 2.0% (with flexibility built in for the expected transition away from LIBOR) and (ii) add an additional option to extend the maturity date by one year. The UK Bilateral Facility now contains two one-year options that allow us to extend the maturity date beyond the September 23, 2022 expiration date, subject to certain conditions specified in the UK Bilateral Facility, including the lender's consent. There were no other changes to the terms of the UK Bilateral Revolving Credit Facility described in Note 6 to Notes to Consolidated Financial Statements included in our Annual Report.
ACCOUNTS RECEIVABLE SECURITIZATION PROGRAM
On June 28, 2021, we entered into an amendment to the Accounts Receivable Securitization Program to extend the maturity date from July 30, 2021 to July 1, 2023, at which point all obligations become due. The interest rate under the amended Accounts Receivable Securitization Program is LIBOR plus 1.0%. The full amount outstanding under the Accounts Receivable Securitization Program is classified within long-term debt, net of current portion at June 30, 2021 and within current portion of long-term debt at December 31, 2020 in our Condensed Consolidated Balance Sheets. There were no other changes to the terms of the Accounts Receivable Securitization Program described in Note 6 to Notes to Consolidated Financial Statements included in our Annual Report.
LETTERS OF CREDIT
As of June 30, 2021, we had outstanding letters of credit totaling $36.7 million, of which $3.2 million reduce our borrowing capacity under the Revolving Credit Facility. The letters of credit expire at various dates between September 2021 and March 2025.
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DEBT COVENANTS
The Credit Agreement (as defined in Note 6 to Notes of Condensed Consolidated Financial Statements included in this Quarterly Report), our bond indentures and other agreements governing our indebtedness contain certain restrictive financial and operating covenants, including covenants that restrict our ability to complete acquisitions, pay cash dividends, incur indebtedness, make investments, sell assets and take certain other corporate actions. The covenants do not contain a rating trigger. Therefore, a change in our debt rating would not trigger a default under the Credit Agreement, our bond indentures or other agreements governing our indebtedness. The Credit Agreement requires that we satisfy a fixed charge coverage ratio, a net total lease adjusted leverage ratio and a net secured debt lease adjusted leverage ratio on a quarterly basis and our bond indentures require that, among other things, we satisfy a leverage ratio (not lease adjusted) or a fixed charge coverage ratio (not lease adjusted), as a condition to taking actions such as paying dividends and incurring indebtedness.
The Credit Agreement uses EBITDAR-based calculations and the bond indentures use EBITDA-based calculations as the primary measures of financial performance for purposes of calculating leverage and fixed charge coverage ratios. The EBITDAR- and EBITDA-based leverage calculations include our consolidated subsidiaries, other than those we have designated as “Unrestricted Subsidiaries” as defined in the Credit Agreement and bond indentures. Generally, the Credit Agreement and the bond indentures use a trailing four fiscal quarter basis for purposes of the relevant calculations and require certain adjustments and exclusions for purposes of those calculations which make the calculation of financial performance for purposes of those calculations under the Credit Agreement and bond indentures not directly comparable to Adjusted EBITDA as presented herein. These adjustments can be significant. For example, the calculation of financial performance under the Credit Agreement and certain of our bond indentures (subject to specified exceptions and caps) adjustments for non-cash charges and for expected benefits associated with (i) completed acquisitions, (ii) certain executed lease agreements associated with our data center business that have yet to commence, and (iii) restructuring and other strategic initiatives, such as Project Summit. The calculation of financial performance under our other bond indentures includes, for example, adjustments (i) for non-cash charges and for expected benefits associated with completed acquisitions, and (ii) to exclude the effects of events that are extraordinary, unusual or non-recurring, such as the COVID-19 pandemic.
Our leverage and fixed charge coverage ratios under the Credit Agreement and our indentures as of June 30, 2021 are as follows:
 JUNE 30, 2021MAXIMUM/MINIMUM ALLOWABLE
Net total lease adjusted leverage ratio5.3 Maximum allowable of 6.5
Net secured debt lease adjusted leverage ratio1.9 Maximum allowable of 4.0
Fixed charge coverage ratio2.3 Minimum allowable of 1.5
Bond leverage ratio (not lease adjusted)5.8 
Maximum allowable of 7.0(1)
Bond fixed charge coverage ratio (not lease adjusted)3.2 
Minimum allowable of 2.0(1)
(1)The indentures for the GBP Notes, the 47/8% Notes due 2027, the 51/4% Notes due 2028 and the 47/8% Notes due 2029 include a maximum leverage ratio covenant. The indentures for the 5% Notes, the 51/4% Notes due 2030, the 41/2% Notes and the 55/8% Notes do not include a maximum leverage ratio covenant; the indentures for these notes instead require us to maintain a minimum fixed charge coverage ratio. In certain instances as provided in our indentures, we have the ability to incur additional indebtedness that would result in our bond leverage ratio or bond fixed charge coverage ratio exceeding or falling below the maximum or minimum permitted ratio under our indentures and still remain in compliance with the applicable covenant.
Noncompliance with these leverage and fixed charge coverage ratios would have a material adverse effect on our financial condition and liquidity.
Our ability to pay interest on or to refinance our indebtedness depends on our future performance, working capital levels and capital structure, which are subject to general economic, financial, competitive, legislative, regulatory and other factors which may be beyond our control. There can be no assurance that we will generate sufficient cash flow from our operations or that future financings will be available on acceptable terms or in amounts sufficient to enable us to service or refinance our indebtedness or to make necessary capital expenditures.

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DERIVATIVE INSTRUMENTS
A. INTEREST RATE SWAP AGREEMENTS
In March 2018, we entered into interest rate swap agreements to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness. As of June 30, 2021, we had $350.0 million in notional value of interest rate swap agreements outstanding, which expire in March 2022. Under the interest rate swap agreements, we receive variable rate interest payments associated with the notional amount of each interest rate swap, based upon one-month LIBOR, in exchange for the payment of fixed interest rates as specified in the interest rate swap agreements.
In July 2019, we entered into forward-starting interest rate swap agreements to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness once our current interest rate swap agreements expire in March 2022. The forward-starting interest rate swap agreements have $350.0 million in notional value, commence in March 2022 and expire in March 2024. Under the forward-starting interest rate swap agreements, we will receive variable rate interest payments based upon one-month LIBOR, in exchange for the payment of fixed interest rates as specified in the interest rate swap agreements.
We have designated these interest rate swap agreements, including the forward-starting interest rate swap agreements, as cash flow hedges.
B. CROSS-CURRENCY SWAP AGREEMENTS
We enter into cross-currency swap agreements to hedge the variability of exchange rate impacts between the United States dollar and the Euro. The cross-currency swap agreements are designated as a hedge of net investment against certain of our Euro denominated subsidiaries and require an exchange of the notional amounts at maturity.
In August 2019, we entered into cross-currency swap agreements whereby we notionally exchanged approximately $110.0 million at an interest rate of 6.0% for approximately 99.1 million Euros at a weighted average interest rate of approximately 3.65%. These cross-currency swap agreements expire in August 2023.
In September 2020, we entered into cross-currency swap agreements whereby we notionally exchanged approximately $359.2 million at an interest rate of 4.5% for approximately 300.0 million Euros at a weighted average interest rate of approximately 3.4%. These cross-currency swap agreements expire in February 2026.
See Note 5 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information on our derivative instruments.
EQUITY FINANCING
In 2017, we entered into a distribution agreement pursuant to which we may sell, from time to time, up to an aggregate sales price of $500.0 million of our common stock through the agents under the agreement (the “At The Market (ATM) Equity Program”). During the six months ended June 30, 2021, there were no shares of common stock sold under the At The Market (ATM) Equity Program. As of June 30, 2021, the remaining aggregate sale price of shares of our common stock available for distribution under the At The Market (ATM) Equity Program was approximately $431.2 million.
ACQUISITIONS
During the second quarter of 2021, in order to enhance our existing operations in the United Kingdom and Indonesia and to expand our operations into Morocco, we completed the acquisition of two records management companies and one art storage company for total cash consideration of approximately $45.0 million.
POTENTIAL FRANKFURT DATA CENTER ACQUISITION
In July 2021, we entered into an agreement to acquire a data center in Frankfurt, Germany from Keppell DC Pte. Ltd. and Graphite (DC) BV for approximately 76.0 million Euros. The completion of the transaction is subject to certain closing conditions; accordingly, we can provide no assurances that we will be able to complete the transaction or that it will not be delayed. We expect to close the transaction during the second half of 2021.
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Part I. Financial Information
INVESTMENTS
2021 NEWLY FORMED JOINT VENTURE
In April 2021, we closed on an agreement to form a joint venture (the "Web Werks JV") with the shareholders of Web Werks India Private Limited ("Web Werks"), a colocation data center provider in India. In connection with the formation of the Web Werks JV, we made an initial investment of approximately 3,750.0 million Indian rupees (or approximately $50.1 million, based upon the exchange rate between the United States dollar and Indian rupee as of the closing date of the initial investment) in exchange for a noncontrolling interest in the form of convertible preference shares in the Web Werks JV (the “Initial Web Werks JV Investment”). These shares are convertible into a to-be-determined amount of common shares based upon the achievement of EBITDA targets for the Web Werks JV's fiscal year ending March 31, 2022.
Under the terms of the Web Werks JV shareholder agreement, we are required to make additional investments over a period ending May 2023 totaling approximately 7,500.0 million Indian rupees (or approximately $100.0 million, based upon the current exchange rate between the United States dollar and Indian rupee), and, over time, we expect to acquire a majority interest in the Web Werks JV.
JOINT VENTURE SUMMARY
The following joint ventures are accounted for as equity method investments and are presented as a component of Other within Other assets, net in our Condensed Consolidated Balance Sheets. The carrying values and equity interests in our joint ventures at June 30, 2021 and December 31, 2020 are as follows (in thousands):
JUNE 30, 2021DECEMBER 31, 2020
CARRYING VALUEEQUITY INTERESTCARRYING VALUEEQUITY INTEREST
Web Werks JV
$50,135 38 %$— — %
Joint venture with AGC Equity Partners
26,387 20 %26,500 20 %
Joint venture with MakeSpace Labs, Inc.(1)
24,069 45 %16,924 39 %
(1)    During both the first quarter and second quarter of 2021, we made capital contributions of $6.5 million to this joint venture.
See Note 2.e. to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for information regarding our 2021 joint ventures.
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ITEM 4. CONTROLS AND PROCEDURES
DISCLOSURE CONTROLS AND PROCEDURES
The term "disclosure controls and procedures" is defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the "Exchange Act”). These rules refer to the controls and other procedures of a company that are designed to ensure that information is recorded, processed, accumulated, summarized, communicated and reported to management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding what is required to be disclosed by a company in the reports that it files under the Exchange Act. As of June 30, 2021 (the "Evaluation Date”), we carried out an evaluation, under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, of the effectiveness of our disclosure controls and procedures. Based upon that evaluation, our chief executive officer and chief financial officer concluded that, as of the Evaluation Date, our disclosure controls and procedures are effective.
CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
Our management, with the participation of our principal executive officer and principal financial officer, is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act. Our internal control system is designed to provide reasonable assurance to our management and board of directors regarding the preparation and fair presentation of published financial statements. 
There were no changes in our internal control over financial reporting that occurred during the quarter ended June 30, 2021, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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Part II. Other Information
PART II. OTHER INFORMATION
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
We did not sell any unregistered equity securities during the three months ended June 30, 2021, nor did we repurchase any shares of our common stock during the three months ended June 30, 2021.
ITEM 5. OTHER INFORMATION
Disclosure Pursuant to Section 13(r) of the Exchange Act
Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012 and Section 13(r) of the Exchange Act require an issuer to disclose in its annual and quarterly reports whether it or any of its affiliates have knowingly engaged in certain activities, including specified activities or transactions relating to persons designated under Executive Order No. 13382 (70 Fed. Reg. 38567). As previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2020 (the “Annual Report”), during the first quarter of 2020, we determined that one of our non-U.S. subsidiaries provided limited document storage and handling services during such quarter, and in prior periods since the reporting requirement took effect, to an entity designated under Executive Order No. 13382 located outside of Iran (“Entity”).

During the second quarter of 2020, the non-U.S. subsidiary notified the Entity of its decision to terminate the relationship and took steps to treat the property held in storage for the Entity as blocked property under regulations administered by OFAC, including by placing blocks and notices on the Entity’s account and instructing relevant employees of the non-U.S. subsidiary. Notwithstanding such procedures, through a review process, the Company became aware that an employee of the non-U.S. subsidiary authorized the destruction of the Entity’s property. The Company conducted a review of the matter which resulted in remediation actions including the termination of the employee. The non-U.S. subsidiary in question did not receive any revenue in connection with this activity and, except for related communications, has not engaged in any other activity with the Entity during the period covered by this report. Consistent with the disclosure contained in the Annual Report, we do not intend to continue any activity involving the Entity.

On August 5, 2021, we submitted an Initial Notice of Voluntary Disclosure to OFAC regarding the destruction of the Entity’s property. We continue to investigate the matter and intend to submit a Final Notice of Voluntary Disclosure to OFAC once the investigation is complete. We will continue to cooperate fully with OFAC in its review of this matter and to enhance our processes and procedures designed to promote compliance with our obligations under applicable international sanctions law.

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ITEM 6. EXHIBITS
(A) EXHIBITS
Certain exhibits indicated below are incorporated by reference to documents we have filed with the SEC.
EXHIBIT NO.DESCRIPTION
3.1
Amendment and Restatement of the Iron Mountain Incorporated Bylaws. (Incorporated by reference to the Company's Current Report on Form 8-K dated May 12, 2021.)
10.1
Third Amendment to the Iron Mountain Incorporated 2014 Stock and Cash Incentive Plan. (Incorporated by reference to the Company's Current Report on Form 8-K dated May 12, 2021.)
31.1
31.2
32.1
32.2
101.INSXBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCHInline XBRL Taxonomy Extension Schema Document.
101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEFInline XBRL Taxonomy Extension Definition Linkbase Document.
101.LABInline XBRL Taxonomy Label Linkbase Document.
101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
IRON MOUNTAIN INCORPORATED
By:/s/ DANIEL BORGES
Daniel Borges
 Senior Vice President, Chief Accounting Officer
Dated: August 5, 2021
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