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Segment Information
12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Segment Information
As a result of a realignment in our senior management reporting structure during the first quarter of 2015, we modified our internal financial reporting to better align internal reporting with how we manage our business. These modifications resulted in the separation of our former International Business segment into two unique reportable operating segments, which we refer to as (1) Western European Business segment and (2) Other International Business segment. Also, during the first quarter of 2015, we reassessed the nature of certain costs which were previously being allocated to the North American Records and Information Management Business and North American Data Management Business segments. As a result of this reassessment, we determined that certain product management functions, which were previously being performed to solely benefit our North American operating segments, are now being performed in a manner that benefits the enterprise as a whole. Accordingly, the costs associated with these product management functions are now included within the Corporate and Other Business segment. Additionally, during the fourth quarter of 2015, as a result of changes in the senior management of our business in Norway, we determined that our Norway operations are now being managed as a component of our Other International Business segment rather than as a component of our Western European Business segment.
As a result of these changes noted above, previously reported segment information has been restated to conform to the current presentation.
Our five reportable operating segments are described as follows:
•
North American Records and Information Management Business—storage and information management services, including the storage of physical records, including other media such as microfilm and microfiche, master audio and videotapes, film, X‑rays and blueprints, including healthcare information services, vital records services, service and courier operations, and the collection, handling and disposal of sensitive documents for corporate customers (“Records Management”); information destruction services (“Destruction”); and DMS throughout the United States and Canada; as well as Fulfillment Services and Intellectual Property Management in the United States.
•
North American Data Management Business—storage and rotation of backup computer media as part of corporate disaster recovery plans including service and courier operations (“Data Protection & Recovery”); server and computer backup services; digital content repository systems to house, distribute, and archive key media assets; and storage, safeguarding and electronic or physical delivery of physical media of all types, primarily for entertainment and media industry clients, throughout the United States and Canada.
•
Western European Business—storage and information management services, including Records Management, Data Protection & Recovery and DMS throughout the United Kingdom, Ireland, Austria, Belgium, France, Germany, Netherlands, Spain and Switzerland. Until December 2014, our Western European Business segment offered Destruction in the United Kingdom and Ireland.
•
Other International Business—storage and information management services throughout the remaining European countries in which we operate, Latin America and Asia Pacific, including Records Management, Data Protection & Recovery and DMS. Our European operations included within the Other International Business segment provide Records Management, Data Protection & Recovery and DMS. Our Latin America operations provide Records Management, Data Protection & Recovery, Destruction and DMS throughout Argentina, Brazil, Chile, Colombia, Mexico and Peru. Our Asia Pacific operations provide Records Management, Data Protection & Recovery and DMS throughout Australia, with Records Management and Data Protection & Recovery also provided in certain cities in India, Singapore, Hong Kong‑SAR and China. Until December 2014, our Other International Business segment offered Destruction in Australia.
•
Corporate and Other Business—primarily consists of our data center and fine art storage businesses in the United States, the primary product offerings of our Adjacent Businesses operating segment (which was formerly referred to as our Emerging Business operating segment), as well as costs related to executive and staff functions, including finance, human resources and information technology, which benefit the enterprise as a whole. These costs are primarily related to the general management of these functions on a corporate level and the design and development of programs, policies and procedures that are then implemented in the individual segments, with each segment bearing its own cost of implementation. Our Corporate and Other Business segment also includes stock‑based employee compensation expense associated with all Employee Stock‑Based Awards.

 
 
North
American
Records & Information Management Business
 
North
American
Data
Management
Business
 
Western European Business
 
Other International Business
 
Corporate and
Other Business
 
Total
Consolidated
2013
 
 

 
 

 
 

 
 
 
 

 
 

Total Revenues
 
$
1,769,233

 
$
396,519

 
$
435,346

 
$
410,253

 
$
13,272

 
$
3,024,623

Depreciation and Amortization
 
165,097

 
19,956

 
54,756

 
50,729

 
31,499

 
322,037

Depreciation
 
150,557

 
19,652

 
45,368

 
35,911

 
31,368

 
282,856

Amortization
 
14,540

 
304

 
9,388

 
14,818

 
131

 
39,181

Adjusted OIBDA
 
652,575

 
237,380

 
118,823

 
87,180

 
(201,377
)
 
894,581

Total Assets(1)
 
3,687,865

 
690,507

 
1,068,853

 
946,249

 
213,924

 
6,607,398

Expenditures for Segment Assets
 
319,419

 
20,678

 
41,869

 
177,034

 
75,586

 
634,586

Capital Expenditures
 
96,545

 
12,929

 
32,156

 
70,079

 
75,586

 
287,295

Cash Paid for Acquisitions, Net of Cash Acquired
 
205,251

 
6,791

 
3,028

 
102,030

 
—

 
317,100

Acquisitions of Customer Relationships and Customer Inducements
 
17,623

 
958

 
6,685

 
4,925

 
—

 
30,191

2014
 
 

 
 

 
 

 
 
 
 

 
 

Total Revenues
 
1,795,361

 
390,207

 
449,231

 
469,314

 
13,580

 
3,117,693

Depreciation and Amortization
 
177,097

 
21,770

 
54,582

 
65,103

 
34,591

 
353,143

Depreciation
 
158,122

 
21,458

 
45,895

 
44,509

 
34,573

 
304,557

Amortization
 
18,975

 
312

 
8,687

 
20,594

 
18

 
48,586

Adjusted OIBDA
 
698,719

 
226,396

 
130,423

 
84,468

 
(214,209
)
 
925,797

Total Assets(1)
 
3,657,366

 
653,275

 
952,924

 
1,025,167

 
234,533

 
6,523,265

Expenditures for Segment Assets
 
198,651


24,387


47,236


186,531


67,659


524,464

Capital Expenditures
 
145,199

 
18,076

 
38,587

 
93,881

 
66,181

 
361,924

Cash Paid for Acquisitions, Net of Cash Acquired
 
26,450

 
5,863

 
4,864

 
90,916

 
—

 
128,093

Acquisitions of Customer Relationships and Customer Inducements
 
27,002

 
448

 
3,785

 
1,734

 
1,478

 
34,447

2015
 
 

 
 

 
 

 
 
 
 

 
 

Total Revenues
 
1,775,365

 
390,486

 
397,513

 
421,360

 
23,252

 
3,007,976

Depreciation and Amortization
 
183,507

 
21,591

 
44,691

 
57,025

 
38,650

 
345,464

Depreciation
 
163,647

 
20,838

 
38,710

 
39,439

 
38,585

 
301,219

Amortization
 
19,860

 
753

 
5,981

 
17,586

 
65

 
44,245

Adjusted OIBDA
 
714,639

 
203,803

 
120,649

 
87,341

 
(206,427
)
 
920,005

Total Assets(1)
 
3,627,843


641,845


871,571


893,530


315,798

 
6,350,587

Expenditures for Segment Assets
 
192,935

 
23,826

 
27,278

 
94,483

 
120,396

 
458,918

Capital Expenditures
 
141,964

 
16,784

 
17,378

 
64,227

 
49,896

 
290,249

Cash Paid for Acquisitions, Net of Cash Acquired
 
12,795

 
(21
)
 
2,596

 
27,688

 
70,500

 
113,558

Acquisitions of Customer Relationships and Customer Inducements
 
38,176

 
7,063

 
7,304

 
2,568

 
—

 
55,111

_______________________________________________________________________________

(1)
Excludes all intercompany receivables or payables and investment in subsidiary balances.
The accounting policies of the reportable segments are the same as those described in Note 2. Adjusted OIBDA for each segment is defined as operating income before depreciation, amortization, intangible impairments, (gain) loss on disposal/write-down of property, plant and equipment, net (excluding real estate), Recall Costs (as defined below) and REIT Costs (as defined below) directly attributable to the segment. Internally, we use Adjusted OIBDA as the basis for evaluating the performance of, and allocating resources to, our operating segments.
A reconciliation of Adjusted OIBDA to income (loss) from continuing operations before provision (benefit) for income taxes and gain on sale of real estate on a consolidated basis is as follows:
 
Year Ended December 31,
 
2013
 
2014
 
2015
Adjusted OIBDA
$
894,581

 
$
925,797

 
$
920,005

Less: Depreciation and Amortization
322,037

 
353,143

 
345,464

Loss on Disposal/Write-down of Property, Plant and Equipment (Excluding Real Estate), Net
430

 
1,065

 
3,000

Recall Costs(1)
—

 
—

 
47,014

REIT Costs(2)
82,867

 
22,312

 
—

Interest Expense, Net
254,174

 
260,717

 
263,871

Other Expense, Net
75,202

 
65,187

 
98,590

Income (Loss) from Continuing Operations before Provision (Benefit) for Income Taxes and Gain on Sale of Real Estate
$
159,871

 
$
223,373

 
$
162,066

_______________________________________________________________________________

(1)
Includes operating expenditures associated with our proposed acquisition of Recall, including costs to complete the Recall Transaction, including advisory and professional fees, as well as costs to integrate Recall with our existing operations, including moving, severance, facility upgrade, REIT conversion and system upgrade costs ("Recall Costs").

(2)
Includes costs associated with our conversion to a REIT, excluding REIT compliance costs beginning January 1, 2014 which we expect to recur in future periods ("REIT Costs").

Information as to our operations in different geographical areas is as follows:
 
Year Ended December 31,
 
2013
 
2014
 
2015
Revenues:
 

 
 

 
 

United States
$
1,938,307

 
$
1,967,169

 
$
1,973,872

United Kingdom
275,343

 
280,020

 
250,123

Canada
240,716

 
231,979

 
215,232

Other International
570,257

 
638,525

 
568,749

Total Revenues
$
3,024,623

 
$
3,117,693

 
$
3,007,976

Long-lived Assets:
 

 
 

 
 

United States
$
3,603,320

 
$
3,586,577

 
$
3,710,301

United Kingdom
520,255

 
464,311

 
434,461

Canada
410,415

 
406,571

 
345,783

Other International
1,139,801

 
1,148,087

 
1,002,130

Total Long-lived Assets
$
5,673,791

 
$
5,605,546

 
$
5,492,675


Information as to our revenues by product and service lines is as follows:
 
Year Ended December 31,
 
2013
 
2014
 
2015
Revenues:
 

 
 

 
 

Records Management(1)(2)
$
2,244,494

 
$
2,329,546

 
$
2,255,206

Data Management(1)(3)
527,091

 
531,516

 
509,261

Information Destruction(1)(4)
253,038

 
256,631

 
243,509

Total Revenues
$
3,024,623

 
$
3,117,693

 
$
3,007,976

_______________________________________________________________________________

(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 the Destruction service offering, which does not have a storage component.
(2)
Includes Business Records Management, Compliant Records Management and Consulting Services, DMS, Fulfillment Services, Health Information Management Solutions, Energy Data Services, Dedicated Facilities Management and Technology Escrow Services.
(3)
Includes Data Protection & Recovery Services and Entertainment Services.
(4)
Includes Secure Shredding and Compliant Information Destruction.