10-Q

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, 2019

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

IRON MOUNTAIN INCORPORATED

(Exact Name of Registrant as Specified in Its Charter)

Delaware	23-2588479
(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)

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, 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 ☒

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.01 par value	IRM	NYSE

As of July 26, 2019, the registrant had 287,106,811 outstanding shares of common stock, $.01 par value.

IRON MOUNTAIN INCORPORATED

Index

	Page
PART I—FINANCIAL INFORMATION
Item 1—Unaudited Condensed Consolidated Financial Statements	3
Condensed Consolidated Balance Sheets at June 30, 2019 and December 31, 2018	3
Condensed Consolidated Statements of Operations for the Three Months Ended June 30, 2019 and 2018	4
Condensed Consolidated Statements of Operations for the Six Months Ended June 30, 2019 and 2018	5
Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2019 and 2018	6
Condensed Consolidated Statements of Equity for the Three and Six Months Ended June 30, 2019	7
Condensed Consolidated Statements of Equity for the Three and Six Months Ended June 30, 2018	8
Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2019 and 2018	9
Notes to Condensed Consolidated Financial Statements (Unaudited)	10
Item 2—Management's Discussion and Analysis of Financial Condition and Results of Operations	51
Item 4—Controls and Procedures	79
PART II—OTHER INFORMATION
Item 2—Unregistered Sales of Equity Securities and Use of Proceeds	80
Item 6—Exhibits	80
Signatures	81

2

Part I. Financial Information

Item 1.    Unaudited Condensed Consolidated Financial Statements

IRON MOUNTAIN INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands, except Share and Per Share Data)

(Unaudited)

	June 30, 2019			December 31, 2018
ASSETS
Current Assets:
Cash and cash equivalents	$	161,996		$	165,485
Accounts receivable (less allowances of $41,305 and $43,584 as of June 30, 2019 and December 31, 2018, respectively)	852,330			846,889
Prepaid expenses and other	200,777			195,740
Total Current Assets	1,215,103			1,208,114
Property, Plant and Equipment:
Property, plant and equipment	7,840,423			7,600,949
Less—Accumulated depreciation	(3,281,864		)	(3,111,392		)
Property, Plant and Equipment, Net	4,558,559			4,489,557
Other Assets, Net:
Goodwill	4,473,424			4,441,030
Customer relationships, customer inducements and data center lease-based intangibles	1,467,025			1,506,522
Operating lease right-of-use assets (see Note 2.d.)	1,793,807			—
Other	213,064			211,995
Total Other Assets, Net	7,947,320			6,159,547
Total Assets	$	13,720,982		$	11,857,218
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of long-term debt	$	123,527		$	126,406
Accounts payable	303,988			318,765
Accrued expenses and other current liabilities (includes current portion of operating lease liabilities, see Note 2.d.)	920,493			780,781
Deferred revenue	268,779			264,823
Total Current Liabilities	1,616,787			1,490,775
Long-term Debt, net of current portion	8,390,183			8,016,417
Long-term Operating Lease Liabilities, net of current portion (see Note 2.d.)	1,655,477			—
Other Long-term Liabilities	131,909			111,331
Deferred Rent (see Note 2.d.)	—			121,864
Deferred Income Taxes	194,532			183,836
Commitments and Contingencies (see Note 7)
Redeemable Noncontrolling Interests	73,113			70,532
Equity:
Iron Mountain Incorporated Stockholders' 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 287,061,769 and 286,321,009 shares as of June 30, 2019 and December 31, 2018, respectively)	2,870			2,863
Additional paid-in capital	4,281,584			4,263,348
(Distributions in excess of earnings) Earnings in excess of distributions	(2,364,812		)	(2,139,493		)
Accumulated other comprehensive items, net	(261,821		)	(265,664		)
Total Iron Mountain Incorporated Stockholders' Equity	1,657,821			1,861,054
Noncontrolling Interests	1,160			1,409
Total Equity	1,658,981			1,862,463
Total Liabilities and Equity	$	13,720,982		$	11,857,218

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

IRON MOUNTAIN INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In Thousands, except Per Share Data)

(Unaudited)

	Three Months Ended June 30,
	2019			2018
Revenues:
Storage rental	$	669,288		$	655,439
Service	397,619			405,384
Total Revenues	1,066,907			1,060,823
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	465,102			451,464
Selling, general and administrative	252,764			252,225
Depreciation and amortization	164,331			156,220
(Gain) Loss on disposal/write-down of property, plant and equipment, net (see Notes 2.j. and 2.m.)	(8,405		)	(546		)
Total Operating Expenses	873,792			859,363
Operating Income (Loss)	193,115			201,460
Interest Expense, Net (includes Interest Income of $1,461 and $2,280 for the three months ended June 30, 2019 and 2018, respectively)	105,314			102,196
Other (Income) Expense, Net	(15,192		)	(19,056		)
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes	102,993			118,320
Provision (Benefit) for Income Taxes	10,646			26,057
Income (Loss) from Continuing Operations	92,347			92,263
Income (Loss) from Discontinued Operations, Net of Tax	128			(360		)
Net Income (Loss)	92,475			91,903
Less: Net Income (Loss) Attributable to Noncontrolling Interests	34			142
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	92,441		$	91,761
Earnings (Losses) per Share—Basic:
Income (Loss) from Continuing Operations	$	0.32		$	0.32
Total Income (Loss) from Discontinued Operations, Net of Tax	$	—		$	—
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	0.32		$	0.32
Earnings (Losses) per Share—Diluted:
Income (Loss) from Continuing Operations	$	0.32		$	0.32
Total Income (Loss) from Discontinued Operations, Net of Tax	$	—		$	—
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	0.32		$	0.32
Weighted Average Common Shares Outstanding—Basic	286,925			285,984
Weighted Average Common Shares Outstanding—Diluted	287,481			286,569

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

IRON MOUNTAIN INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In Thousands, except Per Share Data)

(Unaudited)

	Six Months Ended June 30,
	2019			2018
Revenues:
Storage rental	$	1,332,262		$	1,306,588
Service	788,508			796,693
Total Revenues	2,120,770			2,103,281
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	926,646			900,185
Selling, general and administrative	523,323			529,395
Depreciation and amortization	326,814			316,798
(Gain) Loss on disposal/write-down of property, plant and equipment, net (see Notes 2.j. and 2.m.)	(7,803		)	(1,676		)
Total Operating Expenses	1,768,980			1,744,702
Operating Income (Loss)	351,790			358,579
Interest Expense, Net (includes Interest Income of $3,246 and $3,666 for the six months ended June 30, 2019 and 2018, respectively)	207,750			199,898
Other Expense (Income), Net	18			1,095
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes	144,022			157,586
Provision (Benefit) for Income Taxes	21,199			25,934
Income (Loss) from Continuing Operations	122,823			131,652
Income (Loss) from Discontinued Operations, Net of Tax	104			(822		)
Net Income (Loss)	122,927			130,830
Less: Net Income (Loss) Attributable to Noncontrolling Interests	925			610
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	122,002		$	130,220
Earnings (Losses) per Share—Basic:
Income (Loss) from Continuing Operations	$	0.43		$	0.46
Total Income (Loss) from Discontinued Operations, Net of Tax	$	—		$	—
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	0.43		$	0.46
Earnings (Losses) per Share—Diluted:
Income (Loss) from Continuing Operations	$	0.42		$	0.46
Total Income (Loss) from Discontinued Operations, Net of Tax	$	—		$	—
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	0.42		$	0.45
Weighted Average Common Shares Outstanding—Basic	286,727			285,622
Weighted Average Common Shares Outstanding—Diluted	287,487			286,282

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

IRON MOUNTAIN INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In Thousands)

(Unaudited)

	Three Months Ended June 30,
	2019			2018
Net Income (Loss)	$	92,475		$	91,903
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustment	(5,791		)	(139,172		)
Change in Fair Value of Interest Rate Swap Agreements	(4,931		)	2,388
Total Other Comprehensive (Loss) Income	(10,722		)	(136,784		)
Comprehensive Income (Loss)	81,753			(44,881		)
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	173			(3,274		)
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$	81,580		$	(41,607	)

	Six Months Ended June 30,
	2019			2018
Net Income (Loss)	$	122,927		$	130,830
Other Comprehensive Income (Loss):
Foreign Currency Translation Adjustment	12,400			(107,521		)
Change in Fair Value of Interest Rate Swap Agreements	(7,605		)	2,203
Total Other Comprehensive Income (Loss)	4,795			(105,318		)
Comprehensive Income (Loss)	127,722			25,512
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	1,877			(1,247		)
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$	125,845		$	26,759

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

IRON MOUNTAIN INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(In Thousands, except Share Data)

(Unaudited)

Three Month Period Ended June 30, 2019
				Iron Mountain Incorporated Stockholders' Equity
				Common Stock			Additional Paid-in Capital			(Distributions in Excess of Earnings) Earnings in Excess of Distributions						Noncontrolling Interests
	Total			Shares	Amounts								Accumulated Other Comprehensive Items, Net						Redeemable Noncontrolling Interests
Balance, March 31, 2019	$	1,737,608		286,829,854	$	2,868	$	4,264,978		$	(2,280,611	)	$	(250,960	)	$	1,333		$	73,102
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation	16,774			231,915	2		16,772			—			—			—			—
Change in equity related to redeemable noncontrolling interests	(166		)	—	—		(166		)	—			—			—			166
Parent cash dividends declared (see Note 8)	(176,642		)	—	—		—			(176,642		)	—			—			—
Foreign currency translation adjustment	(5,930		)	—	—		—			—			(5,930		)	—			139
Change in fair value of interest rate swap agreements	(4,931		)	—	—		—			—			(4,931		)	—			—
Net income (loss)	92,268			—	—		—			92,441			—			(173		)	207
Noncontrolling interests dividends	—			—	—		—			—			—			—			(501		)
Balance, June 30, 2019	$	1,658,981		287,061,769	$	2,870	$	4,281,584		$	(2,364,812	)	$	(261,821	)	$	1,160		$	73,113
Six Month Period Ended June 30, 2019
				Iron Mountain Incorporated Stockholders' Equity
				Common Stock			Additional Paid-in Capital			(Distributions in Excess of Earnings) Earnings in Excess of Distributions						Noncontrolling Interests
	Total			Shares	Amounts								Accumulated Other Comprehensive Items, Net						Redeemable Noncontrolling Interests
Balance, December 31, 2018	$	1,862,463		286,321,009	$	2,863	$	4,263,348		$	(2,139,493	)	$	(265,664	)	$	1,409		$	70,532
Cumulative-effect adjustment for adoption of ASU 2016-02 (see Note 2.d.)	5,781			—	—		—			5,781			—			—			—
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation	19,697			740,760	7		19,690			—			—			—			—
Change in equity related to redeemable noncontrolling interests	(1,454		)	—	—		(1,454		)	—			—			—			1,454
Parent cash dividends declared (see Note 8)	(353,102		)	—	—		—			(353,102		)	—			—			—
Foreign currency translation adjustment	11,448			—	—		—			—			11,448			—			952
Change in fair value of interest rate swap agreements	(7,605		)	—	—		—			—			(7,605		)	—			—
Net income (loss)	121,753			—	—		—			122,002			—			(249		)	1,174
Noncontrolling interests dividends	—			—	—		—			—			—			—			(999		)
Balance, June 30, 2019	$	1,658,981		287,061,769	$	2,870	$	4,281,584		$	(2,364,812	)	$	(261,821	)	$	1,160		$	73,113

The accompanying notes are an integral part of these condensed consolidated financial statements.

7

IRON MOUNTAIN INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(In Thousands, except Share Data)

(Unaudited)

Three Month Period Ended June 30, 2018
				Iron Mountain Incorporated Stockholders' Equity
				Common Stock			Additional Paid-in Capital			(Distributions in Excess of Earnings) Earnings in Excess of Distributions						Noncontrolling Interests
	Total			Shares	Amounts								Accumulated Other Comprehensive Items, Net						Redeemable Noncontrolling Interests
Balance, March 31, 2018	$	2,241,342		285,923,405	$	2,859	$	4,250,757		$	(1,939,720	)	$	(74,082	)	$	1,528		$	92,877
Cumulative-effect adjustment for adoption of ASU 2014-09 (see Note 2.c.)	(772		)	—	—		—			(772		)	—			—			—
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation	12,373			175,822	2		12,371			—			—			—			—
Change in value of redeemable noncontrolling interests	(6,234		)	—	—		(6,234		)	—			—			—			6,234
Parent cash dividends declared (see Note 8)	(169,207		)	—	—		—			(169,207		)	—			—			—
Foreign currency translation adjustment	(135,758		)	—	—		—			—			(135,756		)	(2		)	(3,414		)
Change in fair value of interest rate swap agreements	2,388			—	—		—			—			2,388			—			—
Net income (loss)	91,742			—	—		—			91,761			—			(19		)	161
Noncontrolling interests dividends	—			—	—		—			—			—			—			(518		)
Balance, June 30, 2018	$	2,035,874		286,099,227	$	2,861	$	4,256,894		$	(2,017,938	)	$	(207,450	)	$	1,507		$	95,340
Six Month Period Ended June 30, 2018
				Iron Mountain Incorporated Stockholders' Equity
				Common Stock			Additional Paid-in Capital			(Distributions in Excess of Earnings) Earnings in Excess of Distributions						Noncontrolling Interests
	Total			Shares	Amounts								Accumulated Other Comprehensive Items, Net						Redeemable Noncontrolling Interests
Balance, December 31, 2017	$	2,285,134		283,110,183	$	2,831	$	4,164,562		$	(1,779,674	)	$	(103,989	)	$	1,404		$	91,418
Cumulative-effect adjustment for adoption of ASU 2014-09 (see Note 2.c.)	(30,233		)	—	—		—			(30,233		)	—			—			—
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation	13,805			540,558	6		13,799			—			—			—			—
Issuance of shares associated with the Over-Allotment Option, net of underwriting discounts and offering expenses (see Note 12 to Notes to Consolidated Financial Statements included in our Annual Report)	76,192			2,175,000	22		76,170			—			—			—			—
Issuance of shares through the At the Market (ATM) Equity Program, net of underwriting discounts and offering expenses (see Note 8)	8,716			273,486	2		8,714			—			—			—
Change in value of redeemable noncontrolling interests	(6,351		)	—	—		(6,351		)	—			—			—			6,351
Parent cash dividends declared (see Note 8)	(338,251		)	—	—		—			(338,251		)	—			—			—
Foreign currency translation adjustment	(105,512		)	—	—		—			—			(105,664		)	152			(2,009		)
Change in fair value of interest rate swap agreements	2,203			—	—		—			—			2,203			—			—
Net income (loss)	130,171			—	—		—			130,220			—			(49		)	659
Noncontrolling interests dividends	—			—	—		—			—			—			—			(1,079		)
Balance, June 30, 2018	$	2,035,874		286,099,227	$	2,861	$	4,256,894		$	(2,017,938	)	$	(207,450	)	$	1,507		$	95,340

The accompanying notes are an integral part of these condensed consolidated financial statements.

8

IRON MOUNTAIN INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

	Six Months Ended June 30,
	2019			2018
Cash Flows from Operating Activities:
Net income (loss)	$	122,927		$	130,830
Loss (income) from discontinued operations	(104		)	822
Adjustments to reconcile net income (loss) to cash flows from operating activities:
Depreciation	228,333			224,933
Amortization (includes amortization of deferred financing costs and discounts of $8,208 and $7,580 for the six months ended June 30, 2019 and 2018, respectively)	106,689			99,445
Revenue reduction associated with amortization of customer inducements and above- and below-market leases	7,178			7,925
Stock-based compensation expense	21,020			16,073
Provision (benefit) for deferred income taxes	2,753			(741		)
(Gain) loss on disposal/write-down of property, plant and equipment, net (see Note 2.j.)	(7,803		)	(1,676		)
Foreign currency transactions and other, net	(7,505		)	497
(Increase) decrease in assets	(53,038		)	(54,729		)
Increase (decrease) in liabilities	9,281			(29,573		)
Cash Flows from Operating Activities - Continuing Operations	429,731			393,806
Cash Flows from Operating Activities - Discontinued Operations	—			(477		)
Cash Flows from Operating Activities	429,731			393,329
Cash Flows from Investing Activities:
Capital expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	(367,131		)	(217,601		)
Cash paid for acquisitions, net of cash acquired	(44,651		)	(1,666,869		)
Acquisition of customer relationships	(33,375		)	(23,383		)
Customer inducements	(5,841		)	(4,041		)
Contract fulfillment costs and third-party commissions	(51,346		)	(9,809		)
Investments in joint ventures (see Note 9)	(19,222		)	—
Proceeds from sales of property and equipment and other, net	46,832			207
Cash Flows from Investing Activities - Continuing Operations	(474,734		)	(1,921,496		)
Cash Flows from Investing Activities - Discontinued Operations	5,061			—
Cash Flows from Investing Activities	(469,673		)	(1,921,496		)
Cash Flows from Financing Activities:
Repayment of revolving credit facility, term loan facilities and other debt	(2,602,922		)	(7,876,796		)
Proceeds from revolving credit facility, term loan facilities and other debt	2,998,107			8,944,416
Debt repayment and equity distribution to noncontrolling interests	(999		)	(1,079		)
Parent cash dividends	(353,357		)	(337,052		)
Net proceeds associated with the Over-Allotment Option	—			76,192
Net proceeds associated with the At the Market (ATM) Program	—			8,716
Net (payments) proceeds associated with employee stock-based awards	(1,727		)	(2,259		)
Payment of debt financing and stock issuance costs	—			(13,385		)
Cash Flows from Financing Activities - Continuing Operations	39,102			798,753
Cash Flows from Financing Activities - Discontinued Operations	—			—
Cash Flows from Financing Activities	39,102			798,753
Effect of Exchange Rates on Cash and Cash Equivalents	(2,649		)	(8,093		)
(Decrease) Increase in Cash and Cash Equivalents	(3,489		)	(737,507		)
Cash and Cash Equivalents, including Restricted Cash, Beginning of Period	165,485			925,699
Cash and Cash Equivalents, including Restricted Cash, End of Period	$	161,996		$	188,192
Supplemental Information:
Cash Paid for Interest	$	201,602		$	185,804
Cash Paid for Income Taxes, Net	$	38,302		$	33,858
Non-Cash Investing and Financing Activities:
Financing Leases (see Note 2.d.)	$	13,662		$	34,260
Accrued Capital Expenditures	$	66,154		$	49,320
Accrued Purchase Price and Other Holdbacks	$	2,394		$	26,089
Dividends Payable	$	181,731		$	173,301

The accompanying notes are an integral part of these condensed consolidated financial statements.

9

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(1) General

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. Iron Mountain Incorporated, a Delaware corporation ("IMI"), and its subsidiaries ("we" or "us") provide storage of physical records and data backup media, information management solutions and enterprise-class colocation and wholesale data center space that help organizations in various locations throughout North America, Europe, Latin America, Asia and Africa. We offer comprehensive records and information management services and data management services, along with the expertise and experience to address complex storage and information management challenges such as rising storage rental costs, legal and regulatory compliance and disaster recovery requirements. We provide secure and reliable data center facilities to protect digital information and ensure the continued operation of our customers’ information technology infrastructure, with flexible deployment options, including both colocation and wholesale space.

The unaudited condensed consolidated financial statements 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 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, 2018 included in our Annual Report on Form 10-K filed with the SEC on February 14, 2019 (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.

On January 10, 2018, we completed the acquisition of IO Data Centers, LLC ("IODC") (the "IODC Transaction"). See Note 3.

On January 1, 2019, we adopted Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842), as amended ("ASU 2016-02"). See Note 2.d.

(2) Summary of Significant Accounting Policies

This Note 2 to Notes to Condensed Consolidated Financial Statements provides information and disclosure regarding certain of our significant accounting policies and should be read in conjunction with Note 2 to Notes to Consolidated Financial Statements included in our Annual Report, which may provide additional information with regard to the accounting policies set forth herein and other of our 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.

At June 30, 2019 and December 31, 2018, we had approximately $9,059 and $15,141, respectively, of restricted cash held by certain financial institutions related to bank guarantees.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(2) Summary of Significant Accounting Policies (Continued)

b.    Goodwill and Other Intangible Assets and Liabilities

Goodwill

Since December 31, 2018, there have been no changes to our accounting polices related to the accounting for goodwill. As of June 30, 2019 and December 31, 2018, no factors were identified that would alter our October 1, 2018 goodwill impairment analysis.

Our reporting units as of December 31, 2018 are described in detail in Note 2.h. to Notes to Consolidated Financial Statements included in our Annual Report. On March 19, 2019, we divested the business included in our former Consumer Storage reporting unit, which had no goodwill associated with it at December 31, 2018 or at the date of the divestment. See Note 9 for additional information.

The goodwill associated with acquisitions completed during the first six months of 2019 (which are described in Note 3) has been incorporated into our reporting units as they existed as of December 31, 2018.

The changes in the carrying value of goodwill attributable to each reportable operating segment for the six months ended June 30, 2019 are as follows:

	North American Records and Information Management Business		North American Data Management Business		Western European Business			Other International Business		Global Data Center Business		Corporate and Other Business			Total Consolidated
Goodwill balance, net of accumulated amortization as of December 31, 2018	$	2,251,795	$	493,491	$	381,806		$	818,223	$	425,956	$	69,759		$	4,441,030
Deductible goodwill acquired during the year	5,501		—		—			2,758		—		—			8,259
Non-deductible goodwill acquired during the year	—		—		5,011			4,387		—		1,904			11,302
Fair value and other adjustments(1)	55		—		959			2,842		258		(422		)	3,692
Currency effects	7,704		2,093		(2,851		)	1,907		193		95			9,141
Goodwill balance, net accumulated amortization as of June 30, 2019	$	2,265,055	$	495,584	$	384,925		$	830,117	$	426,407	$	71,336		$	4,473,424
Accumulated Goodwill Impairment Balance as of December 31, 2018	$	85,909	$	—	$	46,500		$	—	$	—	$	3,011		$	135,420
Accumulated Goodwill Impairment Balance as of June 30, 2019	$	85,909	$	—	$	46,500		$	—	$	—	$	3,011		$	135,420

_______________________________________________________________________________

(1) Total fair value and other adjustments primarily include $3,755 in net adjustments related to property, plant and equipment, customer relationships and data center lease-based intangible assets and deferred income taxes and other liabilities offset by $63 of cash received related to certain acquisitions completed in 2018.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(2) Summary of Significant Accounting Policies (Continued)

Finite-lived Intangible Assets and Liabilities

Finite-lived intangible assets and liabilities are primarily comprised of customer relationship intangible assets, customer inducements and data center intangible assets and liabilities (which include data center in-place lease intangible assets, data center tenant relationship intangible assets, data center above-market in-place lease intangible assets and data center below-market in-place lease intangible assets). Since December 31, 2018, there have been no changes to our accounting policies related to the accounting for any of our finite-lived intangible assets and liabilities as disclosed in Note 2.i. to Notes to Consolidated Financial Statements included in our Annual Report.

The gross carrying amount and accumulated amortization of our finite-lived intangible assets as of June 30, 2019 and December 31, 2018 are as follows:

	June 30, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Assets:
Customer relationship intangible assets	$	1,766,769	$	(511,672	)	$	1,255,097	$	1,718,919	$	(455,705	)	$	1,263,214
Customer inducements	52,542		(29,091		)	23,451		56,478		(34,181		)	22,297
Data center lease-based intangible assets(1)	266,263		(77,786		)	188,477		271,818		(50,807		)	221,011
Third-party commissions asset(2)	31,391		(1,874		)	29,517		30,071		(1,089		)	28,982
	$	2,116,965	$	(620,423	)	$	1,496,542	$	2,077,286	$	(541,782	)	$	1,535,504
Liabilities:
Data center below-market leases	$	12,765	$	(2,954	)	$	9,811	$	12,318	$	(1,642	)	$	10,676

_______________________________________________________________________________

(1) Includes data center in-place lease intangible assets, data center tenant relationship intangible assets and data center above-market in-place lease intangible assets.

(2) Third-party commissions asset is included in Other, a component of Other assets, net in the accompanying Condensed Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018. The third-party commissions asset is primarily comprised of additional payments associated with the execution of future customer contracts through the one-year anniversary of the acquisition of IODC, as described in Note 3.

Other finite-lived intangible assets, including trade names, noncompetition agreements and trademarks, are capitalized and amortized and are included in depreciation and amortization in the accompanying Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2019 and 2018. The other finite-lived intangible assets as of June 30, 2019 and December 31, 2018 are as follows:

	June 30, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Other finite-lived intangible assets (included in Other, a component of other assets, net)	$	19,960	$	(16,482	)	$	3,478	$	20,310	$	(14,798	)	$	5,512

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(2) Summary of Significant Accounting Policies (Continued)

Amortization expense associated with finite-lived intangible assets, revenue reduction associated with the amortization of customer inducements and net revenue reduction associated with the amortization of data center above-market leases and data center below-market leases for the three and six months ended June 30, 2019 and 2018 are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Amortization expense included in depreciation and amortization associated with:
Customer relationship and customer inducement intangible assets	$	28,283	$	28,813	$	56,164	$	57,619
Data center in-place leases and tenant relationships	11,372		7,563		23,981		18,401
Third-party commissions asset and other finite-lived intangible assets	2,184		1,659		2,941		2,844
Revenue reduction associated with amortization of:
Customer inducements	$	2,598	$	2,968	$	5,338	$	5,553
Data center above-market leases and data center below-market leases	935		1,293		1,840		2,372

c.    Revenues

Since December 31, 2018, there have been no changes to our accounting policies related to the accounting for revenues as disclosed in Note 2.l. to Notes to Consolidated Financial Statements included in our Annual Report.

The costs of the initial intake of customer records into physical storage ("Intake Costs") and capitalized commissions asset (collectively, "Contract Fulfillment Costs") as of June 30, 2019 and December 31, 2018 are as follows:

		June 30, 2019							December 31, 2018
Description	Location in Balance Sheet	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Intake Costs asset	Other (within Other Assets, Net)	$	34,915	$	(19,398	)	$	15,517	$	39,748	$	(24,504	)	$	15,244
Capitalized commissions asset	Other (within Other Assets, Net)	48,564		(17,895		)	30,669		58,424		(34,637		)	23,787

Amortization expense associated with the Intake Costs asset and capitalized commissions asset for the three and six months ended June 30, 2019 and 2018 are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Intake Costs asset	$	2,835	$	2,891	$	5,514	$	5,621
Capitalized commissions asset	5,935		3,793		9,881		7,380

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(2) Summary of Significant Accounting Policies (Continued)

Deferred revenue liabilities are reflected as follows in our Condensed Consolidated Balance Sheets:

Description	Location in Balance Sheet	June 30, 2019		December 31, 2018
Deferred revenue - Current	Deferred revenue	$	268,779	$	264,823
Deferred revenue - Long-term	Other Long-term Liabilities	25,436		26,401

Data Center Lessor Considerations

Our data center business features storage rental provided to customers at contractually specified rates over a fixed contractual period. Prior to January 1, 2019, our data center revenue contracts were accounted for in accordance with Accounting Standards Codification (“ASC”) No. 840, Leases ("ASC 840"). On January 1, 2019, we adopted ASU 2016-02, as described in more detail in Note 2.d. Beginning on January 1, 2019, our data center revenue contracts will be accounted for in accordance with ASU 2016-02. ASU 2016-02 provides a practical expedient which allows lessors to account for nonlease components (such as power and connectivity, in the case of our data center business) with the related lease component if both the timing and pattern of transfer are the same for nonlease components and the lease component, and the lease component would be classified as an operating lease. The single combined component is accounted for under ASU 2016-02 if the lease component is the predominant component and is accounted for under ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), if the nonlease components are the predominant components. We have elected to take this practical expedient. Storage rental revenue associated with our data center business was $60,582 and $120,300 for the three and six months ended June 30, 2019, respectively, which includes approximately $9,900 and $19,000 of revenue associated with power and connectivity for the three and six months ended June 30, 2019, respectively. The revenue related to the service component of our data center business remains unchanged from the adoption of ASU 2016-02 and is recognized in the period the related services are provided. Our accounting treatment for data center revenue was not significantly impacted by the adoption of ASU 2016-02.

The future minimum lease payments we expect to receive under non-cancellable data center operating leases, for which we are the lessor, excluding month to month leases, for the next five years are as follows:

	Future minimum lease payments
2019 (excluding the six months ended June 30, 2019)	$	103,016
2020	155,581
2021	111,945
2022	79,763
2023	61,684

d. 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. The majority of our leased facilities are classified as operating leases that, on average, have initial lease terms of five to 10 years, with one or more lease renewal options to extend the lease term. Our lease renewal option terms generally range from one to five years. The exercise of the lease renewal option is at our sole discretion and may contain fixed rent, fair market value based rent or Consumer Price Index rent escalation clauses. We include option periods in the lease term when our failure to renew the lease would result in an economic disincentive, thereby making it reasonably certain that we will renew the lease. We recognize straight line rental expense over the life of the lease and any fair market value or Consumer Price Index rent escalations are recognized as variable lease expense in the period in which the obligation is incurred. In addition, we lease certain vehicles and equipment. Vehicle and equipment leases have lease terms ranging from one to seven years.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(2) Summary of Significant Accounting Policies (Continued)

In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases (Topic 842) which requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases, both operating and financing (formerly referred to as capital leases under ASC 840). ASU 2016-02 requires certain qualitative and quantitative disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases.

We adopted ASU 2016-02 on January 1, 2019 on a modified retrospective basis under which we recognized and measured leases existing at, or entered into after, the beginning of the period of adoption. Therefore, we applied ASC 840 to all earlier comparative periods (prior to the adoption of ASU 2016-02), including disclosures, and recognized the effects of applying ASU 2016-02 as a cumulative-effect adjustment to retained earnings as of January 1, 2019, the effective date of the standard. As such, the comparative Condensed Consolidated Balance Sheet as of December 31, 2018 has not been restated to reflect the adoption of ASU 2016-02. Accordingly, the majority of the amount presented as deferred rent liabilities on our Consolidated Balance Sheet as of December 31, 2018 is now included in the calculation of operating lease right-of-use assets and any remaining amounts are now classified within other liability line items on our Condensed Consolidated Balance Sheet as of June 30, 2019. The transition guidance associated with ASU 2016-02 also permitted certain practical expedients. We elected the "package of 3" practical expedients permitted under the transition guidance which, among other things, allowed us to carryforward our historical lease classifications. We also adopted an accounting policy which provides that leases with an initial term of 12 months or less will not be included within the lease right-of-use assets and lease liabilities recognized on our Condensed Consolidated Balance Sheets after the adoption of ASU 2016-02. We will continue to recognize the lease payments for those leases with an initial term of 12 months or less in the Condensed Consolidated Statements of Operations on a straight-line basis over the lease term.

The lease right-of-use assets and related lease liabilities are classified as either operating or financing. Lease right-of-use assets are calculated as the net present value of future payments plus any capitalized initial direct costs less any tenant improvements or lease incentives. Lease liabilities are calculated as the net present value of future payments. In calculating the present value of the lease payments, we will utilize the rate stated within the lease (in the limited circumstances when such rate is available) or, if no rate is explicitly stated, we have elected to utilize a rate that reflects our securitized incremental borrowing rate by geography for the lease term. In July 2018, the FASB issued ASU 2018-11, Leases - Targeted Improvements ("ASU 2018-11"). ASU 2018-11 provides a practical expedient which allows lessees to account for nonlease components (which include common area maintenance, taxes, and insurance) with the related lease component. Any variable nonlease components are not included within the lease right-of-use asset and lease liability on the Condensed Consolidated Balance Sheets, and instead, are reflected as an expense in the period incurred. We have elected to take this practical expedient upon adoption of ASU 2016-02.

At January 1, 2019, we recognized the cumulative effect of initially applying ASU 2016-02 as an adjustment to the opening balance of (Distributions in excess of earnings) Earnings in excess of distributions, resulting in an increase of approximately $5,800 to stockholders' equity due to certain build to suit leases that were accounted for as financing leases under ASC 840, Leases, but are accounted for as operating leases under ASU 2016-02 at January 1, 2019.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(2) Summary of Significant Accounting Policies (Continued)

Operating and financing lease right-of-use assets and lease liabilities as of June 30, 2019 and January 1, 2019 (date of adoption of ASU 2016-02) are as follows:

Description	Location in Balance Sheet	June 30, 2019		January 1, 2019 (Date of Adoption of ASU 2016-02)
Assets:
Operating lease right-of-use assets(1)	Operating lease right-of-use assets	$	1,793,807	$	1,825,721
Financing lease right-of-use assets, net of accumulated depreciation(2)	Property, plant and equipment, net	344,320		361,078
Total		$	2,138,127	$	2,186,799
Liabilities:
Current
Operating lease liabilities	Accrued expenses and other current liabilities	$	212,968	$	209,911
Financing lease liabilities	Current portion of long-term debt	50,116		50,437
Total current lease liabilities		263,084		260,348
Long-term
Operating lease liabilities	Long-term operating lease liabilities, net of current portion	1,655,477		1,685,771
Financing lease liabilities	Long-term Debt, net of current portion	331,233		350,263
Total long-term lease liabilities		1,986,710		2,036,034
Total		$	2,249,794	$	2,296,382

______________________________________________________________

(1) At June 30, 2019, these assets are comprised of approximately 98% real estate related assets (which include land, buildings and racking) and 2% non-real estate related assets (which include warehouse equipment, vehicles, furniture and fixtures and computer hardware and software).

(2) At June 30, 2019, these assets are comprised of approximately 62% real estate related assets and 38% non-real estate related assets.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(2) Summary of Significant Accounting Policies (Continued)

The components of the lease expense for the three and six months ended June 30, 2019 are as follows:

Description	Location in Statement of Operations	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Operating lease cost(1)	Cost of sales and Selling, general and administrative	$	113,392	$	222,571
Financing lease cost:
Depreciation of financing lease right-of-use assets	Depreciation and amortization	$	14,942	$	31,271
Interest expense for financing lease liabilities	Interest expense, net	4,925		11,067
Total financing lease cost		$	19,867	$	42,338

______________________________________________________________

(1) Of the $113,392 incurred for the three months ended June 30, 2019, $110,441 is included within Cost of sales and $2,951 is included within Selling, general and administrative expenses. Of the $222,571 incurred for the six months ended June 30, 2019, $216,335 is included within Cost of sales and $6,236 is included within Selling, general and administrative expenses. Operating lease cost includes variable lease costs of $23,847 and $46,610 for the three and six months ended June 30, 2019, respectively.

We sublease certain real estate to third parties. We recognized sublease income of $1,671 and $3,554 for the three and six months ended June 30, 2019, respectively.

Weighted average remaining lease terms and discount rates as of June 30, 2019 are as follows:

Remaining Lease Term:
Operating leases	11.0 Years
Financing leases	11.0 Years
Discount Rate:
Operating leases	7.1%
Financing leases	5.6%

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(2) Summary of Significant Accounting Policies (Continued)

The estimated minimum future lease payments as of June 30, 2019, are as follows:

Year	Operating Leases(1)			Sublease Income			Financing Leases(1)
2019 (excluding the six months ended June 30, 2019)	$	171,378		$	(3,494	)	$	40,635
2020	321,670			(5,728		)	60,377
2021	295,696			(4,828		)	54,766
2022	271,552			(4,462		)	48,071
2023	246,252			(4,333		)	40,351
Thereafter	1,482,286			(10,185		)	296,260
Total minimum lease payments	2,788,834			$	(33,030	)	540,460
Less amounts representing interest or imputed interest	(920,389		)				(159,111		)
Present value of lease obligations	$	1,868,445					$	381,349

The estimated minimum future lease payments as of December 31, 2018 are as follows:

Year	Operating Leases(1)		Sublease Income			Financing Leases(1)(2)
2019	$	323,454	$	(7,525	)	$	80,513
2020	293,276		(7,200		)	71,335
2021	267,379		(7,063		)	61,269
2022	246,128		(6,694		)	52,832
2023	221,808		(6,409		)	44,722
Thereafter	1,287,807		(6,279		)	377,750
Total minimum lease payments	$	2,639,852	$	(41,170	)	688,421
Less amounts representing interest						(241,248		)
Present value of lease obligations						$	447,173

_______________________________________________________________________________

(1) Estimated minimum future lease payments exclude variable common area maintenance charges, insurance and taxes. Differences in estimated lease payments between June 30, 2019 and December 31, 2018 are primarily related to adjustments to account for certain build to suit leases that were accounted for as financing obligations under ASC 840 but are accounted for as operating leases under ASU 2016-02 and foreign currency exchange rate impacts.

(2) Includes capital lease and financing obligations associated with build to suit lease transactions at December 31, 2018.

As of June 30, 2019, we do not have any material operating or financing leases that are signed but have not yet commenced and we have certain leases with related parties which are not material to our consolidated financial statements.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(2) Summary of Significant Accounting Policies (Continued)

Other information: Supplemental cash flow information relating to our leases for the six months ended June 30, 2019 is as follows:

Cash paid for amounts included in measurement of lease liabilities:	Six Months Ended June 30, 2019
Operating cash flows used in operating leases	$	167,426
Financing cash flows used in financing leases	$	31,146
Non-cash items:
Operating lease modifications and reassessments	$	14,024
New operating leases (including acquisitions)	$	87,482
New financing leases, modifications and reassessments	$	13,662

e.    Stock-Based Compensation

We record stock-based compensation expense, utilizing the straight-line method, for the cost of stock options, restricted stock units ("RSUs"), performance units ("PUs") and shares of stock issued under our employee stock purchase plan (together, "Employee Stock-Based Awards"). There have been no significant changes to our accounting policies, assumptions and valuation methodologies related to the accounting for our Employee Stock-Based Awards as disclosed in Note 2.n. to Notes to Consolidated Financial Statements included in our Annual Report.

For our Employee Stock-Based Awards made on or after February 20, 2019, we have included the following retirement provision: Upon an employee’s retirement on or after attaining age 58, if the sum of (i) the award recipient’s age at retirement and (ii) the award recipient’s years of service with the company totals at least 70, the award recipient is entitled to continued vesting of any outstanding Employee Stock-Based Awards which include the 2019 Retirement Criteria subsequent to their retirement, provided that, for awards granted in the year of retirement, their retirement occurs on or after July 1st (the “2019 Retirement Criteria”). Accordingly, (i) grants of Employee Stock-Based Awards to an employee who has met the 2019 Retirement Criteria on or before the date of grant, or will meet the Retirement Criteria before July 1^st of the year of the grant, will be expensed between the date of grant and July 1^st of the grant year and (ii) grants of Employee Stock-Based Awards to employees who will meet the 2019 Retirement Criteria during the award’s normal vesting period will be expensed between the date of grant and the date upon which the award recipient meets the 2019 Retirement Criteria. Stock options and RSUs granted to recipients who meet the 2019 Retirement Criteria will continue vesting on the original vesting schedule, and the stock options will remain exercisable up to three years after retirement, or the original expiration date of the stock options, if earlier. PUs granted to recipients who meet the 2019 Retirement Criteria will continue to vest and be delivered in accordance with the original vesting schedule of the applicable PU award and remain subject to the same performance conditions.

Stock-based compensation expense for Employee Stock-Based Awards for the three and six months ended June 30, 2019 was $12,501 ($11,649 after tax or $0.04 per basic and diluted share) and $21,020 ($19,585 after tax or $0.07 per basic and diluted share), respectively, and for the three and six months ended June 30, 2018 was $8,689 ($8,032 after tax or $0.03 per basic and diluted share) and $16,073 ($14,865 after tax or $0.05 per basic and diluted share), respectively. The substantial majority of the stock-based compensation expense for Employee Stock-Based Awards is included in Selling, general and administrative expenses in the accompanying Condensed Consolidated Statements of Operations. As of June 30, 2019, unrecognized compensation cost related to the unvested portion of our Employee Stock-Based Awards was $61,833 and is expected to be recognized over a weighted-average period of 2.1 years.

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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)

Stock Options

A summary of stock option activity for the six months ended June 30, 2019 is as follows:

	Stock Options
Outstanding at December 31, 2018	4,271,834
Granted	920,706
Exercised	(194,480	)
Forfeited	(12,525	)
Expired	(15,647	)
Outstanding at June 30, 2019	4,969,888
Options exercisable at June 30, 2019	3,160,175
Options expected to vest	1,704,441

Restricted Stock Units

The fair value of RSUs vested during the three and six months ended June 30, 2019 and 2018 is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Fair value of RSUs vested	$	2,375	$	676	$	17,710	$	16,006

A summary of RSU activity for the six months ended June 30, 2019 is as follows:

	RSUs
Non-vested at December 31, 2018	1,196,566
Granted	731,801
Vested	(527,239	)
Forfeited	(55,070	)
Non-vested at June 30, 2019	1,346,058

Performance Units

The fair value of earned PUs that vested during the three and six months ended June 30, 2019 and 2018 is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Fair value of earned PUs that vested	$	—	$	—	$	6,503	$	3,033

20

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(2) Summary of Significant Accounting Policies (Continued)

A summary of PU activity for the six months ended June 30, 2019 is as follows:

	Original PU Awards		PU Adjustment(1)		Total PU Awards
Non-vested at December 31, 2018	967,049		(299,948	)	667,101
Granted	380,856		—		380,856
Vested	(169,523	)	—		(169,523	)
Forfeited/Performance or Market Conditions Not Achieved	(11,093	)	(14,850	)	(25,943	)
Non-vested at June 30, 2019	1,167,289		(314,798	)	852,491

_______________________________________________________________________________

(1) Represents an increase or decrease in the number of original PUs awarded based on either the final performance criteria or market condition achievement at the end of the performance period of such PUs or a change in estimated awards based on the forecasted performance against the predefined targets.

As of June 30, 2019, we expected 100% achievement of the predefined revenue, return on invested capital and Adjusted EBITDA (as defined in Note 6) targets associated with the awards of PUs made in 2019, 2018 and 2017.

21

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.    Income (Loss) Per Share—Basic and Diluted

Basic income (loss) per common share is calculated by dividing income (loss) by the weighted average number of common shares outstanding. The calculation of diluted income (loss) per share is consistent with that of basic income (loss) per share, but gives effect to all potential common shares (that is, securities such as stock options, RSUs or PUs) that were outstanding during the period, unless the effect is antidilutive.

The calculation of basic and diluted income (loss) per share for the three and six months ended June 30, 2019 and 2018 are as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2019		2018			2019		2018
Income (loss) from continuing operations	$	92,347	$	92,263		$	122,823	$	131,652
Less: Net income (loss) attributable to noncontrolling interests	34		142			925		610
Income (loss) from continuing operations (utilized in numerator of Earnings Per Share calculation)	$	92,313	$	92,121		$	121,898	$	131,042
Income (loss) from discontinued operations, net of tax	$	128	$	(360	)	$	104	$	(822	)
Net income (loss) attributable to Iron Mountain Incorporated	$	92,441	$	91,761		$	122,002	$	130,220
Weighted-average shares—basic	286,925,000		285,984,000			286,727,000		285,622,000
Effect of dilutive potential stock options	148,629		237,708			190,016		243,636
Effect of dilutive potential RSUs and PUs	407,659		347,543			570,040		415,929
Weighted-average shares—diluted	287,481,288		286,569,251			287,487,056		286,281,565
Earnings (losses) per share—basic:
Income (loss) from continuing operations	$	0.32	$	0.32		$	0.43	$	0.46
Income (loss) from discontinued operations, net of tax	—		—			—		—
Net income (loss) attributable to Iron Mountain Incorporated(1)	$	0.32	$	0.32		$	0.43	$	0.46
Earnings (losses) per share—diluted:
Income (loss) from continuing operations	$	0.32	$	0.32		$	0.42	$	0.46
Income (loss) from discontinued operations, net of tax	—		—			—		—
Net income (loss) attributable to Iron Mountain Incorporated(1)	$	0.32	$	0.32		$	0.42	$	0.45
Antidilutive stock options, RSUs and PUs, excluded from the calculation	5,004,112		3,272,502			4,494,637		3,257,322

_______________________________________________________________________________

(1) Columns may not foot due to rounding.

22

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)

g. Income Taxes

We provide for income taxes during interim periods based on our estimate of the effective tax rate for the year. Our estimate of the effective tax rates for the years ending December 31, 2019 and 2018 reflect the impact of the U.S. tax reform legislation, commonly referred to as the Tax Cuts and Jobs Act (the “Tax Reform Legislation”). See Note 7 to Notes to Consolidated Financial Statements included in our Annual Report for additional information regarding the impact the Tax Reform Legislation had on us. Discrete items and changes in our estimate of the annual effective tax rate are recorded in the period they occur. Our effective tax rate is subject to variability in the future due to, among other items: (1) changes in the mix of income between our qualified REIT subsidiaries ("QRSs") and our domestic taxable REIT subsidiaries ("TRSs"), as well as among the jurisdictions in which we operate; (2) tax law changes; (3) volatility in foreign exchange gains and losses; (4) the timing of the establishment and reversal of tax reserves; and (5) our ability to utilize net operating losses that we generate.

Our effective tax rates for the three and six months ended June 30, 2019 and 2018 are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019(1)		2018(1)		2019(1)		2018(2)
Effective Tax Rate	10.3	%	22.0	%	14.7	%	16.5	%

_______________________________________________________________________________

(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, 2019 and for the three months ended June 30, 2018 were the benefit derived from the dividends paid deduction and the impact of differences in the tax rates at which our foreign earnings are subject, including foreign exchange gains and losses in different jurisdictions with different tax rates.  

(2) 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, 2018 were the benefit derived from the dividends paid deduction, a discrete tax benefit of approximately $14,000 associated with the resolution of a tax matter and the impact of differences in the tax rates at which our foreign earnings are subject, including foreign exchange gains and losses in different jurisdictions with different tax rates.

h. Fair Value Measurements

Our financial assets or liabilities that are carried at fair value are required to be measured using inputs from the three levels of the fair value hierarchy. A financial asset or liability's classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The three levels of the fair value hierarchy are as follows:

Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date.

Level 2—Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

Level 3—Unobservable inputs that reflect our assumptions about the assumptions that market participants would use in pricing the asset or liability.

23

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)

The assets and liabilities carried at fair value measured on a recurring basis as of June 30, 2019 and December 31, 2018, respectively, are as follows:

			Fair Value Measurements at June 30, 2019 Using
Description	Total Carrying Value at June 30, 2019		Quoted prices in active markets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)
Money Market Funds(1)	$	4,418	$	—		$	4,418		$	—
Trading Securities	10,366		9,744		(2)	622		(3)	—
Interest Rate Swap Agreements Liabilities(5)	8,578		—			8,578			—

			Fair Value Measurements at December 31, 2018 Using
Description	Total Carrying Value at December 31, 2018		Quoted prices in active markets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)
Time Deposits(1)	$	956	$	—		$	956		$	—
Trading Securities	10,753		10,248		(2)	505		(3)	—
Derivative Assets(4)	93		—			93			—
Interest Rate Swap Agreements Liabilities(5)	973		—			973			—

_______________________________________________________________________________

(1) Money market funds and time deposits are measured based on quoted prices for similar assets and/or subsequent transactions.

(2) Certain trading securities are measured at fair value using quoted market prices.

(3) Certain trading securities are measured based on inputs that are observable other than quoted market prices.

(4) Derivative assets and liabilities relate to short-term (six months or less) foreign currency contracts that we have entered into to hedge certain of our foreign exchange intercompany exposures. We calculate the value of such forward contracts by adjusting the spot rate utilized at the balance sheet date for translation purposes by an estimate of the forward points observed in active markets. As of June 30, 2019, we had no outstanding forward contracts. As of December 31, 2018, we had outstanding forward contracts to purchase 29,000 Euros and sell $33,374 United States dollars. We have not designated any of the forward contracts we have entered into as hedges.

(5) We have 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, 2019 and December 31, 2018, 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 rate payments (at the fixed rate interest specified in the interest rate swap agreements). We have designated these interest rate swaps as cash flow hedges. Unrealized gains are recognized as assets while unrealized losses are recognized as liabilities. The fair value of the interest rate swaps are estimated using industry standard valuation models using market-based observable inputs, including interest rate curves.

24

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)

Disclosures are required in the financial statements for items measured at fair value on a non-recurring basis. There were no material items that are measured at fair value on a non-recurring basis at June 30, 2019 and December 31, 2018, other than those disclosed in Note 2.s. to Notes to Consolidated Financial Statements included in our Annual Report, those acquired in acquisitions that occurred during the six months ended June 30, 2019 and our investment in Makespace LLC (as disclosed in Note 9), all of which are based on Level 3 inputs.

The fair value of our long-term debt, which was determined based on either Level 1 inputs or Level 3 inputs, is disclosed in Note 4. Long-term debt is measured at cost in our Condensed Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018.

i.    Accumulated Other Comprehensive Items, Net

The changes in accumulated other comprehensive items, net for the three and six months ended June 30, 2019, respectively, are as follows:

	Three Months Ended June 30, 2019									Six Months Ended June 30, 2019
	Foreign Currency Translation Adjustments			Fair Value Adjustments for Interest Rate Swap Agreements			Total			Foreign Currency Translation Adjustments			Fair Value Adjustments for Interest Rate Swap Agreements			Total
Beginning of Period	$	(247,313	)	$	(3,647	)	$	(250,960	)	$	(264,691	)	$	(973	)	$	(265,664	)
Other comprehensive (loss) income:
Foreign currency translation adjustment(1)	(5,930		)	—			(5,930		)	11,448			—			11,448
Fair value adjustments for interest rate swap agreements	—			(4,931		)	(4,931		)	—			(7,605		)	(7,605		)
Total other comprehensive (loss) income	(5,930		)	(4,931		)	(10,861		)	11,448			(7,605		)	3,843
End of Period	$	(253,243	)	$	(8,578	)	$	(261,821	)	$	(253,243	)	$	(8,578	)	$	(261,821	)

_____________________________________________________________

(1) This amount includes foreign exchange losses (gains) of $4,280 and $(1,861) for the three and six months ended June 30, 2019, respectively, related to the change in fair value of the portion of our Euro Notes (as defined and discussed more fully in Note 4) designated as a hedge of net investment of certain of our Euro denominated subsidiaries. For the six months ended June 30, 2019, we designated, on average, 274,161 Euros of our Euro Notes as a hedge of net investment of certain of our Euro denominated subsidiaries. As of June 30, 2019, cumulative net gains of $16,119 net of tax, are recorded in accumulated other comprehensive items, net associated with this net investment hedge.

25

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)

The changes in accumulated other comprehensive items, net for the three and six months ended June 30, 2018, respectively, are as follows:

	Three Months Ended June 30, 2018									Six Months Ended June 30, 2018
	Foreign Currency Translation Adjustments			Fair Value Adjustments for Interest Rate Swap Agreements			Total			Foreign Currency Translation Adjustments			Fair Value Adjustments for Interest Rate Swap Agreements		Total
Beginning of Period	$	(73,897	)	$	(185	)	$	(74,082	)	$	(103,989	)	$	—	$	(103,989	)
Other comprehensive (loss) income:
Foreign currency translation adjustment(1)	(135,756		)	—			(135,756		)	(105,664		)	—		(105,664		)
Fair value adjustments for interest rate swap agreements	—			2,388			2,388			—			2,203		2,203
Total other comprehensive (loss) income	(135,756		)	2,388			(133,368		)	(105,664		)	2,203		(103,461		)
End of Period	$	(209,653	)	$	2,203		$	(207,450	)	$	(209,653	)	$	2,203	$	(207,450	)

______________________________________________________________

(1) This amount includes foreign exchange gains of $10,257 and $4,622 for the three and six months ended June 30, 2018, respectively, related to the change in fair value of the portion of our Euro Notes designated as a hedge of net investment of certain of our Euro denominated subsidiaries. For the six months ended June 30, 2018, we designated, on average, 179,881 Euros of our Euro Notes as a hedge of net investment of certain of our Euro denominated subsidiaries.

j. Gain on Disposal/Write-Down of Property, Plant and Equipment, Net

We are currently exploring strategic options regarding how to maintain and support the infrastructure of select offerings within our Iron Mountain Iron Cloud (“Iron Cloud”) portfolio of products and services. During the second quarter of 2019, we performed a long-lived asset impairment analysis on the assets associated with these select offerings and concluded that the associated carrying value of the long-lived assets (which consisted entirely of property, plant and equipment) was not recoverable based upon the underlying cash flows associated with these select offerings. Therefore, we recorded an impairment charge of approximately $24,000 during the second quarter of 2019, representing the net carrying value of the long-lived assets associated with these select offerings.

Consolidated gain on disposal/write-down of property, plant and equipment, net, for the three and six months ended June 30, 2019 was approximately $8,400 and $7,800, respectively. The gain for the six months ended June 30, 2019 consisted primarily of gains associated with the sale of certain land and buildings in the United Kingdom of approximately $36,000. These gains were partially offset by losses primarily associated with (i) the impairment charge on the assets associated with the select offerings within our Iron Cloud portfolio, as described above, and (ii) the write-down of certain property, plant and equipment in our North American Records and Information Management Business of approximately $3,100.

26

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)

k.    Other (Income) Expense, Net

Other (income) expense, net for the three and six months ended June 30, 2019 and 2018 consists of the following:

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Foreign currency transaction (gains) losses, net	$	(19,331	)	$	(18,624	)	$	(1,634	)	$	3,161
Other, net	4,139			(432		)	1,652			(2,066		)
	$	(15,192	)	$	(19,056	)	$	18		$	1,095

The gain or loss on foreign currency transactions, calculated as the difference between the historical exchange rate and the exchange rate at the applicable measurement date, include gains or losses related to (i) borrowings in certain foreign currencies under our Revolving Credit Facility (as defined and discussed more fully in Note 4), (ii) our Euro Notes, (iii) certain foreign currency denominated intercompany obligations of our foreign subsidiaries to us and between our foreign subsidiaries, which are not considered permanently invested, and (iv) amounts that are paid or received on the net settlement amount from forward contracts (as more fully discussed in Note 2.h.).

Other, net for the six months ended June 30, 2019 includes the gain on sale from the Consumer Storage Transaction (as defined and discussed more fully in Note 9) of approximately $4,200 recorded during the first quarter of 2019. In addition, Other, net for the three and six months ended June 30, 2019 includes the change in estimated fair value of the noncontrolling interests associated with our business in India, which are accounted for as mandatorily redeemable noncontrolling interests.

l.    New Accounting Pronouncements

In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) ("ASU 2018-15"). ASU 2018-15 aligns the accounting for costs incurred to implement a cloud computing arrangement that is a service arrangement with the guidance on capitalizing costs associated with developing or obtaining internal-use software. We adopted ASU 2018-15 on January 1, 2019. ASU 2018-15 did not have a material impact on our consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02. We adopted ASU 2016-02 on January 1, 2019 on a modified retrospective basis. See Note 2.d. for information regarding the impact of the adoption of ASU 2016-02 on our consolidated financial statements.

m. Correction in Presentation

Subsequent to our conversion to a REIT, we have historically classified gains on sale of real estate, net of tax, as a separate line on our consolidated statements of operations and excluded such amounts from our reported operating income. We presented such amounts net of tax as these gains were presented below the provision (benefit) for income taxes on our consolidated statements of operations. Commencing with the first quarter of 2019, we now present gains on sale of real estate as a component of operating income in the line item (gain) loss on disposal/write-down of property, plant and equipment, net. See Note 2.j. for details of the (gain) loss on disposal/write-down of property, plant and equipment, net recognized during the three and six months ended June 30, 2019. Such amounts are presented gross of tax with any tax impact presented within provision (benefit) for income taxes. All prior periods will be conformed to this presentation. We did not recognize any gains on sale of real estate during the three and six months ended June 30, 2018. During the third and fourth quarter of 2018, we recognized a total of approximately $55,000 of gains on sale of real estate, net of tax.

27

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)

n. Immaterial Restatement

In June 2019, we received a notification of assessment from tax and customs authorities in the Netherlands related to a value-added tax (“VAT”) liability of approximately 16,800 Euros primarily related to the years ending December 31, 2018 and 2017. We have established a reserve for this matter based upon our estimate of the amount of loss that is both probable and estimable, inclusive of interest and penalties. See Note 7 for additional information on this matter.

This matter relates to periods prior to January 1, 2019, resulting in (i) an understatement of our prior years' reported selling, general and administrative expense and interest expense and (ii) an overstatement of our prior years’ reported provision for income taxes for the related tax impact. Based on our estimate of the amount of loss related to this matter that is both probable and estimable, we believe selling, general and administrative expenses and interest expense were understated by approximately $11,000 and $400, respectively, and the provision for income taxes was overstated by approximately $2,000 for the year ended December 31, 2018, which, in the aggregate, would reduce net income from continuing operations by approximately $9,400 for the year ended December 31, 2018. Based on our estimate of the amount of loss related to this matter that is both probable and estimable, we believe the selling, general and administrative expenses and interest expense were understated by approximately $16,600 and $100, respectively, and the provision for income taxes was overstated by approximately $3,000 for the year ended December 31, 2017, which, in the aggregate, would reduce net income from continuing operations by approximately $13,700 for the year ended December 31, 2017. We have determined that no prior period financial statement was materially misstated as a result of the previously unrecorded reserves related to this matter. As a result, we have restated ending (Distributions in excess of earnings) Earnings in excess of distributions as of December 31, 2018 in the amount of approximately $23,100 for the cumulative impact of the aforementioned items. There was no impact to the Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2019, as a result of this matter.

Additionally, we have restated our 2018 Condensed Consolidated Balance Sheet, and each of our Condensed Consolidated Statements of Operations, our Condensed Consolidated Statements of Comprehensive Income (Loss), our Condensed Consolidated Statements of Equity and the related notes for the three and six months ended June 30, 2018 to reflect the impact of the reserve we have established for this matter in those periods. There was no change to the following lines of the Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2018: (1) cash flows from operating activities, (2) cash flows from investing activities and (3) cash flows from financing activities.

28

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)

The following table sets forth the effect of the immaterial restatement to certain line items of our Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2018:

	Three Months Ended June 30, 2018			Six Months Ended June 30, 2018
Selling, general and administrative	$	1,899		$	9,339
Total Operating Expenses	$	1,899		$	9,339
Operating Income (Loss)	$	(1,899	)	$	(9,339	)
Interest Expense, Net	$	89		$	165
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes	$	(1,988	)	$	(9,504	)
Provision (Benefit) for Income Taxes	$	(348	)	$	(1,639	)
Income (Loss) from Continuing Operations	$	(1,640	)	$	(7,865	)
Net Income (Loss)	$	(1,640	)	$	(7,865	)
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	(1,640	)	$	(7,865	)
Earnings (Losses) per Share - Basic:
Income (Loss) from Continuing Operations	$	(0.01	)	$	(0.03	)
Net Income (Loss) from Continuing Operations Attributable to Iron Mountain	$	(0.01	)	$	(0.03	)
Earnings (Losses) per Share - Diluted:
Income (Loss) from Continuing Operations	$	(0.01	)	$	(0.03	)
Net Income (Loss) from Continuing Operations Attributable to Iron Mountain	$	(0.01	)	$	(0.03	)

The following table sets forth the effect of the immaterial restatement to certain line items of our Condensed Consolidated Balance Sheet as of December 31, 2018:

	December 31, 2018
Total Other Assets, Net	$	4,971
Total Assets	$	4,971
Accrued expenses and other current liabilities	$	28,097
Total Current Liabilities	$	28,097
(Distribution in excess of earnings) Earnings in excess of distributions	$	(23,126	)
Total Iron Mountain Incorporated Stockholders' Equity	$	(23,126	)

The immaterial restatement changed (Distribution in excess of earnings) Earnings in excess of distributions disclosed in our Condensed Consolidated Statements of Equity for the periods ended March 31, 2019, June 30, 2018, March 31, 2018 and December 31, 2017 by $(23,126), $(21,573), $(19,933) and $(13,708), respectively.

Prospectively, we will process an immaterial restatement of our consolidated financial statements for the quarter periods ended September 30, 2018 and December 31, 2018, as well as for the annual periods ended December 31, 2018 and 2017, when those statements are reproduced on a comparative basis in our Form 10-Q for the quarterly period ending September 30, 2019 and our Annual Report on Form 10-K for the year ending December 31, 2019.

29

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(3) Acquisitions

We account for acquisitions using the acquisition method of accounting, and, accordingly, the assets and liabilities acquired are recorded at their estimated fair values and the results of operations for each acquisition have been included in our consolidated results from their respective acquisition dates.

Acquisitions Completed During the Six Months Ended June 30, 2019

During the six months ended June 30, 2019, in order to enhance our existing operations in the United States, the United Kingdom, Switzerland, Thailand and Latvia and to expand our operations into Bulgaria, we completed the acquisition of six storage and records management companies and one art storage company for total cash consideration of approximately $36,800.

Purchase Price Allocation

A summary of the cumulative consideration paid and the preliminary allocation of the purchase price paid for all of our 2019 acquisitions through June 30, 2019 is as follows:

	Six Months Ended June 30, 2019
Cash Paid (gross of cash acquired)(1)	$	39,072
Purchase Price Holdbacks and Other	2,394
Total Consideration	41,466
Fair Value of Identifiable Assets Acquired:
Cash	2,285
Accounts Receivable, Prepaid Expenses and Other Assets	3,164
Property, Plant and Equipment(2)	4,538
Customer Relationship Intangible Assets	15,670
Operating Lease Right-of-Use Assets	13,256
Accounts Payable, Accrued Expenses and Other Liabilities	(2,124		)
Operating Lease Liabilities	(13,256		)
Deferred Income Taxes	(1,628		)
Total Fair Value of Identifiable Net Assets Acquired	21,905
Goodwill Initially Recorded(3)	$	19,561

_______________________________________________________________________________

(1) Included in cash paid for acquisitions in the Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2019 is net cash acquired of $2,285 and contingent and other payments, net of $7,864 related to acquisitions made in previous years.

(2) Consists primarily of leasehold improvements, racking structures and warehouse equipment. These assets are depreciated using the straight-line method with the useful lives as noted in Note 2.f. to Notes to Consolidated Financial Statements included in our Annual Report.

(3) The goodwill associated with acquisitions is primarily attributable to the assembled workforce, expanded market opportunities and costs and other operating synergies anticipated upon the integration of the operations of us and the acquired businesses.

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IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(3) Acquisitions (Continued)

See Note 6 to Notes to Consolidated Financial Statements included in our Annual Report for additional information regarding our allocations of the purchase price for acquisitions. The preliminary purchase price allocations that are not finalized as of June 30, 2019 primarily relate to the final assessment of the fair values of intangible assets and liabilities (primarily customer relationship intangible assets), property, plant and equipment (primarily building, building improvements and racking structures), right-of-use assets and liabilities associated with acquired operating leases, contingencies and income taxes (primarily deferred income taxes), primarily associated with the acquisitions we closed in 2019.

As the valuation of certain assets and liabilities for purposes of purchase price allocations are preliminary in nature, they are subject to adjustment as additional information is obtained about the facts and circumstances regarding these assets and liabilities that existed at the acquisition date. Any adjustments to our estimates of purchase price allocation will be made in the periods in which the adjustments are determined 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 three months ended June 30, 2019 were not material to our results from operations.

Acquisition of IO Data Centers in 2018

On January 10, 2018, we completed the IODC Transaction. At the closing of the IODC Transaction, we paid approximately $1,347,000. In February 2019, we paid approximately $31,000 in additional purchase price associated with the execution of customer contracts from the closing through the one-year anniversary of the IODC Transaction, which was accrued at December 31, 2018. This amount, net of amortization, is reported as a third-party commissions asset as a component of Other within Other assets, net, in our Condensed Consolidated Balance Sheets at June 30, 2019 and December 31, 2018.

The unaudited consolidated pro forma financial information (the "Pro Forma Financial Information") below summarizes the combined results of us and IODC on a pro forma basis as if the IODC Transaction had occurred on January 1, 2017. The Pro Forma Financial Information is presented for informational purposes and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place on January 1, 2017. The Pro Forma Financial Information, for the period presented, includes purchase accounting adjustments (including amortization expenses from acquired intangible assets and depreciation of acquired property, plant and equipment). We and IODC collectively incurred $28,064 of operating expenditures to complete the IODC Transaction (including advisory and professional fees). These operating expenditures have been reflected within the results of operations in the Pro Forma Financial Information as if they were incurred on January 1, 2017.

	Three Months Ended June 30, 2018		Six Months Ended June 30, 2018
Total Revenues	$	1,060,823	$	2,106,771
Income from Continuing Operations	$	92,263	$	141,604
Per Share Income from Continuing Operations - Basic	$	0.32	$	0.49
Per Share Income from Continuing Operations - Diluted	$	0.32	$	0.49

In addition to our acquisition of IODC, we completed certain other acquisitions during the first six months of 2019 and in fiscal year 2018. The Pro Forma Financial Information does not reflect these acquisitions due to the insignificant impact of these acquisitions on our consolidated results of operations.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(4) Debt

Long-term debt is as follows:

	June 30, 2019											December 31, 2018
	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)	$	1,181,376		$	(12,548	)	$	1,168,828		$	1,181,376	$	793,832		$	(14,117	)	$	779,715		$	793,832
Term Loan A(1)	234,375			—			234,375			234,375		240,625			—			240,625			240,625
Term Loan B(2)	689,782			(8,118		)	681,664			668,784		693,169			(8,742		)	684,427			660,013
Australian Dollar Term Loan (the "AUD Term Loan")(3)	230,048			(2,691		)	227,357			231,506		233,955			(3,084		)	230,871			235,645
UK Bilateral Revolving Credit Facility ("UK Bilateral Facility")(4)	177,762			(2,030		)	175,732			177,762		178,299			(2,357		)	175,942			178,299
43/8% Senior Notes due 2021 (the "43/8% Notes")(5)	500,000			(3,295		)	496,705			505,000		500,000			(4,155		)	495,845			488,750
6% Senior Notes due 2023 (the "6% Notes due 2023")(5)	600,000			(4,576		)	595,424			612,000		600,000			(5,126		)	594,874			606,000
53/8% CAD Senior Notes due 2023 (the "CAD Notes")	190,972			(2,335		)	188,637			192,882		183,403			(2,506		)	180,897			186,154
53/4% Senior Subordinated Notes due 2024 (the "53/4% Notes")(5)	1,000,000			(7,096		)	992,904			1,010,000		1,000,000			(7,782		)	992,218			940,000
3% Euro Senior Notes due 2025 (the "Euro Notes")(5)	341,128			(3,781		)	337,347			351,113		343,347			(4,098		)	339,249			321,029
37/8% GBP Senior Notes due 2025 (the "GBP Notes")	507,891			(6,074		)	501,817			502,192		509,425			(6,573		)	502,852			453,811
53/8% Senior Notes due 2026 (the "53/8% Notes")	250,000			(2,971		)	247,029			252,500		250,000			(3,185		)	246,815			224,375
47/8% Senior Notes due 2027 (the "47/8% Notes")(5)	1,000,000			(11,731		)	988,269			990,000		1,000,000			(12,442		)	987,558			855,000
51/4% Senior Notes due 2028 (the "51/4% Notes")(5)	825,000			(10,333		)	814,667			825,000		825,000			(10,923		)	814,077			713,625
Real Estate Mortgages, Financing Lease Liabilities and Other	559,622			(425		)	559,197			559,622		606,702			(171		)	606,531			606,702
Accounts Receivable Securitization Program(6)	254,962			(149		)	254,813			254,962		221,673			(218		)	221,455			221,673
Mortgage Securitization Program(7)	50,000			(1,055		)	48,945			50,000		50,000			(1,128		)	48,872			50,000
Total Long-term Debt	8,592,918			(79,208		)	8,513,710					8,229,430			(86,607		)	8,142,823
Less Current Portion	(123,527		)	—			(123,527		)			(126,406		)	—			(126,406		)
Long-term Debt, Net of Current Portion	$	8,469,391		$	(79,208	)	$	8,390,183				$	8,103,024		$	(86,607	)	$	8,016,417

______________________________________________________________

32

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(4) Debt (Continued)

(1) Collectively, the credit agreement ("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. Of the $1,181,376 of outstanding borrowings under the Revolving Credit Facility as of June 30, 2019, 1,028,900 was denominated in United States dollars, 76,800 was denominated in Canadian dollars and 82,500 was denominated in Euros. In addition, we also had various outstanding letters of credit totaling $35,250. The remaining amount available for borrowing under the Revolving Credit Facility as of June 30, 2019 was $533,374 (which amount represents the maximum availability as of such date). The average interest rate in effect under the Credit Agreement was 4.0% as of June 30, 2019. The average interest rate in effect under the Revolving Credit Facility as of June 30, 2019 was 4.0% and the interest rate in effect under Term Loan A as of June 30, 2019 was 4.2%.

(2) In connection with the 2018 First Amendment (as defined in Note 5 to Notes to Consolidated Financial Statements included in our Annual Report), Iron Mountain Information Management, LLC ("IMIM") entered into an incremental term loan activation notice (the "Activation Notice") with certain lenders pursuant to which the lenders party to the Activation Notice agreed to provide commitments to fund an incremental term loan B in the amount of $700,000 (the "Term Loan B"). On March 26, 2018, IMIM borrowed the full amount of the Term Loan B. The Term Loan B is scheduled to mature on January 2, 2026. The interest rate in effect as of June 30, 2019 was 4.2%. The amount of debt for the Term Loan B reflects an unamortized original issue discount of $1,468 and $1,581 as of June 30, 2019 and December 31, 2018, respectively.

(3) The interest rate in effect as of June 30, 2019 was 5.1%. We had 329,688 Australian dollars outstanding on the AUD Term Loan as of June 30, 2019. The amount of debt for the AUD Term Loan reflects an unamortized original issue discount of $1,458 and $1,690 as of June 30, 2019 and December 31, 2018, respectively.

(4) The interest rate in effect as of June 30, 2019 was 3.1%.

(5) Collectively, the "Parent Notes".

(6) The interest rate in effect as of June 30, 2019 was 3.4%.

(7) The interest rate in effect as of June 30, 2019 was 3.5%.

See Note 4 to Notes to Consolidated Financial Statements included in our Annual Report for additional information regarding our 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, 2019 are consistent with the levels of the fair value hierarchy used to determine the fair value of our debt as of December 31, 2018 (which are disclosed in our Annual Report). Additionally, see Note 5 to Notes to Consolidated Financial Statements included in our Annual Report for information regarding which of our consolidated subsidiaries guarantee certain of our debt instruments. There have been no material changes to our long-term debt since December 31, 2018.

Cash Pooling

As described in greater detail in Note 4 to Notes to Consolidated Financial Statements included in our Annual Report, certain of our subsidiaries participate in cash pooling arrangements (the “Cash Pools”) in order to help manage global liquidity requirements. We currently utilize two separate cash pools, one of which we utilize to manage global liquidity requirements for our QRSs (the "QRS Cash Pool") and the other for our TRSs (the "TRS Cash Pool").

33

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(4) Debt (Continued)

The approximate amount of the net cash position for our QRS Cash Pool and the TRS Cash Pool and the approximate amount of the gross position and outstanding debit balances for each of these pools as of June 30, 2019 and December 31, 2018 are as follows:

	June 30, 2019							December 31, 2018
	Gross Cash Position		Outstanding Debit Balances			Net Cash Position		Gross Cash Position		Outstanding Debit Balances			Net Cash Position
QRS Cash Pool	$	308,200	$	(306,500	)	$	1,700	$	300,800	$	(298,800	)	$	2,000
TRS Cash Pool	295,500		(292,700		)	2,800		281,500		(279,300		)	2,200

The net cash position balances as of June 30, 2019 and December 31, 2018 are reflected as cash and cash equivalents in the Condensed Consolidated Balance Sheets.

Debt Covenants

The Credit Agreement, our 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 indentures or other agreements governing our indebtedness. The Credit Agreement uses EBITDAR-based calculations as the primary measures of financial performance, including leverage and fixed charge coverage ratios.

Our leverage and fixed charge coverage ratios under the Credit Agreement as of June 30, 2019 and December 31, 2018, as well as our leverage ratio under our indentures as of June 30, 2019 and December 31, 2018 are as follows:

	June 30, 2019	December 31, 2018	Maximum/Minimum Allowable
Net total lease adjusted leverage ratio	5.8	5.6	Maximum allowable of 6.5
Net secured debt lease adjusted leverage ratio	2.8	2.6	Maximum allowable of 4.0
Bond leverage ratio (not lease adjusted)	6.1	5.8	Maximum allowable of 6.5-7.0(1)
Fixed charge coverage ratio	2.2	2.2	Minimum allowable of 1.5

______________________________________________________________

(1) The maximum allowable leverage ratio under our indentures for the 4⁷/₈% Notes, the GBP Notes and the 5¹/₄% Notes is 7.0, while the maximum allowable leverage ratio under the indentures pertaining to our remaining senior and senior subordinated notes is 6.5. In certain instances as provided in our indentures, we have the ability to incur additional indebtedness that would result in our bond leverage ratio exceeding the maximum allowable ratio under our indentures and still remain in compliance with the covenant.

Noncompliance with these leverage and fixed charge coverage ratios would have a material adverse effect on our financial condition and liquidity.

34

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(5) Selected Consolidated Financial Statements of Parent, Guarantors and Non-Guarantors

The following data summarizes the consolidating results of IMI on the equity method of accounting as of June 30, 2019 and December 31, 2018 and for the three and six months ended June 30, 2019 and 2018 and are prepared on the same basis as the consolidated financial statements.

The Parent Notes, the CAD Notes, the GBP Notes, and the 5³/₈% Notes are guaranteed by the subsidiaries referred to below as the Guarantors. These subsidiaries are 100% owned by IMI. The guarantees are full and unconditional, as well as joint and several.

Additionally, IMI guarantees the CAD Notes, which were issued by Iron Mountain Canada Operations ULC ("Canada Company"), the GBP Notes, which were issued by Iron Mountain (UK) PLC ("IM UK"), and the 5³/₈% Notes, which were issued by Iron Mountain US Holdings, Inc., which is one of the Guarantors. Canada Company and IM UK do not guarantee the Parent Notes. The subsidiaries that do not guarantee the Parent Notes, the CAD Notes, the GBP Notes, and the 5³/₈% Notes are referred to below as the Non-Guarantors.

In the normal course of business, we periodically change the ownership structure of our subsidiaries to meet the requirements of our business. In the event of such changes, we recast the prior period financial information within this footnote to conform to the current period presentation in the period such changes occur. Generally, these changes do not alter the designation of the underlying subsidiaries as Guarantors or Non-Guarantors. However, they may change whether the underlying subsidiary is owned by the Parent, a Guarantor or a Non-Guarantor. If such a change occurs, the amount of investment in subsidiaries in the below Condensed Consolidated Balance Sheets and equity in the earnings (losses) of subsidiaries, net of tax in the below Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) with respect to the relevant Parent, Guarantors, Non-Guarantors and Eliminations columns also would change.

35

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(5) Selected Consolidated Financial Statements of Parent, Guarantors and Non-Guarantors (Continued)

CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30, 2019
	Parent		Guarantors		Non- Guarantors		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents(1)	$	6	$	124,553	$	106,923	$	(69,486	)	$	161,996
Accounts receivable	—		65,357		786,973		—			852,330
Intercompany receivable	—		1,184,345		—		(1,184,345		)	—
Prepaid expenses and other	—		87,505		113,301		(29		)	200,777
Total Current Assets	6		1,461,760		1,007,197		(1,253,860		)	1,215,103
Property, Plant and Equipment, Net	145		3,013,538		1,544,876		—			4,558,559
Other Assets, Net:
Long-term notes receivable from affiliates and intercompany receivable	5,072,926		—		—		(5,072,926		)	—
Investment in subsidiaries	1,982,052		1,073,877		—		(3,055,929		)	—
Goodwill	—		2,857,968		1,615,456		—			4,473,424
Operating lease right-of-use assets	—		921,540		872,267		—			1,793,807
Other	2		965,060		715,027		—			1,680,089
Total Other Assets, Net	7,054,980		5,818,445		3,202,750		(8,128,855		)	7,947,320
Total Assets	$	7,055,131	$	10,293,743	$	5,754,823	$	(9,382,715	)	$	13,720,982
Liabilities and Equity
Intercompany Payable	$	892,894	$	—	$	291,451	$	(1,184,345	)	$	—
Debit Balances Under Cash Pools	—		—		69,486		(69,486		)	—
Current Portion of Long-Term Debt	—		54,848		68,708		(29		)	123,527
Total Other Current Liabilities (includes current portion of operating lease liabilities)	270,521		679,750		542,989		—			1,493,260
Long-Term Debt, Net of Current Portion	4,225,317		2,265,699		1,899,167		—			8,390,183
Long-Term Operating Lease Liabilities, Net of Current Portion	—		857,375		798,102		—			1,655,477
Long-Term Notes Payable to Affiliates and Intercompany Payable	—		5,072,926		—		(5,072,926		)	—
Other Long-term Liabilities	8,578		51,721		266,142		—			326,441
Commitments and Contingencies (See Note 7)
Redeemable Noncontrolling Interests	—		—		73,113		—			73,113
Total Iron Mountain Incorporated Stockholders' Equity	1,657,821		1,311,424		1,744,505		(3,055,929		)	1,657,821
Noncontrolling Interests	—		—		1,160		—			1,160
Total Equity	1,657,821		1,311,424		1,745,665		(3,055,929		)	1,658,981
Total Liabilities and Equity	$	7,055,131	$	10,293,743	$	5,754,823	$	(9,382,715	)	$	13,720,982

______________________________________________________________

(1) Included within Cash and Cash Equivalents at June 30, 2019 is approximately $74,000 and $0 of cash on deposit associated with our Cash Pools for the Guarantors and Non-Guarantors, respectively.

36

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(5) Selected Consolidated Financial Statements of Parent, Guarantors and Non-Guarantors (Continued)

CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)

	December 31, 2018
	Parent		Guarantors		Non- Guarantors		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents(1)	$	132	$	61,650	$	169,318	$	(65,615	)	$	165,485
Accounts receivable	—		47,900		798,989		—			846,889
Intercompany receivable	—		818,463		—		(818,463		)	—
Prepaid expenses and other	93		108,879		86,797		(29		)	195,740
Total Current Assets	225		1,036,892		1,055,104		(884,107		)	1,208,114
Property, Plant and Equipment, Net	190		3,002,104		1,487,263		—			4,489,557
Other Assets, Net:
Long-term notes receivable from affiliates and intercompany receivable	4,954,686		—		—		(4,954,686		)	—
Investment in subsidiaries	1,862,048		983,018		—		(2,845,066		)	—
Goodwill	—		2,858,539		1,582,491		—			4,441,030
Other	—		979,483		739,034		—			1,718,517
Total Other Assets, Net	6,816,734		4,821,040		2,321,525		(7,799,752		)	6,159,547
Total Assets	$	6,817,149	$	8,860,036	$	4,863,892	$	(8,683,859	)	$	11,857,218
Liabilities and Equity
Intercompany Payable	$	462,927	$	—	$	355,536	$	(818,463	)	$	—
Debit Balances Under Cash Pools	—		10,612		55,003		(65,615		)	—
Current Portion of Long-Term Debt	—		63,703		62,732		(29		)	126,406
Total Other Current Liabilities	268,373		616,826		479,170		—			1,364,369
Long-Term Debt, Net of Current Portion	4,223,822		1,877,649		1,914,946		—			8,016,417
Long-Term Notes Payable to Affiliates and Intercompany Payable	—		4,954,686		—		(4,954,686		)	—
Other Long-term Liabilities	973		115,994		300,064		—			417,031
Commitments and Contingencies (See Note 7)
Redeemable Noncontrolling Interests	—		—		70,532		—			70,532
Total Iron Mountain Incorporated Stockholders' Equity	1,861,054		1,220,566		1,624,500		(2,845,066		)	1,861,054
Noncontrolling Interests	—		—		1,409		—			1,409
Total Equity	1,861,054		1,220,566		1,625,909		(2,845,066		)	1,862,463
Total Liabilities and Equity	$	6,817,149	$	8,860,036	$	4,863,892	$	(8,683,859	)	$	11,857,218

______________________________________________________________

(1) Included within Cash and Cash Equivalents at December 31, 2018 is approximately $57,200 and $12,700 of cash on deposit associated with our Cash Pools for the Guarantors and Non-Guarantors, respectively.

37

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(5) Selected Consolidated Financial Statements of Parent, Guarantors and Non-Guarantors (Continued)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

	Three Months Ended June 30, 2019
	Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage rental	$	—		$	411,159		$	258,129		$	—		$	669,288
Service	—			246,090			151,529			—			397,619
Intercompany revenues	—			1,158			4,540			(5,698		)	—
Total Revenues	—			658,407			414,198			(5,698		)	1,066,907
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	—			260,675			204,427			—			465,102
Intercompany	—			4,540			1,158			(5,698		)	—
Selling, general and administrative	62			173,443			79,259			—			252,764
Depreciation and amortization	22			104,594			59,715			—			164,331
Loss (Gain) on disposal/write-down of property, plant and equipment, net	—			26,786			(35,191		)	—			(8,405		)
Total Operating Expenses	84			570,038			309,368			(5,698		)	873,792
Operating (Loss) Income	(84		)	88,369			104,830			—			193,115
Interest Expense (Income), Net(1)	49,601			8,640			47,073			—			105,314
Other Expense (Income), Net	359			4,487			(20,038		)	—			(15,192		)
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes	(50,044		)	75,242			77,795			—			102,993
Provision (Benefit) for Income Taxes	—			1,153			9,493			—			10,646
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	(142,485		)	(69,710		)	—			212,195			—
Income (Loss) from Continuing Operations	92,441			143,799			68,302			(212,195		)	92,347
Income (Loss) from Discontinued Operations, Net of Tax	—			144			(16		)	—			128
Net Income (Loss)	92,441			143,943			68,286			(212,195		)	92,475
Less: Net Income (Loss) Attributable to Noncontrolling Interests	—			—			34			—			34
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	92,441		$	143,943		$	68,252		$	(212,195	)	$	92,441
Net Income (Loss)	$	92,441		$	143,943		$	68,286		$	(212,195	)	$	92,475
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustments	(4,280		)	—			(1,511		)	—			(5,791		)
Change in fair value of interest rate swap agreements	(4,931		)	—			—			—			(4,931		)
Equity in Other Comprehensive (Loss) Income of Subsidiaries	(1,650		)	1,121			—			529			—
Total Other Comprehensive (Loss) Income	(10,861		)	1,121			(1,511		)	529			(10,722		)
Comprehensive Income (Loss)	81,580			145,064			66,775			(211,666		)	81,753
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	—			—			173			—			173
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$	81,580		$	145,064		$	66,602		$	(211,666	)	$	81,580

_____________________________________________________________

(1) Included within Interest Expense (Income), Net are intercompany management fees and royalty fees, which are eliminated in our consolidated financial statements.

38

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(5) Selected Consolidated Financial Statements of Parent, Guarantors and Non-Guarantors (Continued)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Continued)

	Three Months Ended June 30, 2018
	Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage rental	$	—		$	397,449		$	257,990		$	—		$	655,439
Service	—			244,403			160,981			—			405,384
Intercompany revenues	—			1,216			4,305			(5,521		)	—
Total Revenues	—			643,068			423,276			(5,521		)	1,060,823
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	—			251,360			200,104			—			451,464
Intercompany cost of sales	—			4,305			1,216			(5,521		)	—
Selling, general and administrative	36			167,739			84,450			—			252,225
Depreciation and amortization	32			96,170			60,018			—			156,220
(Gain) Loss on disposal/write-down of property, plant and equipment, net	—			(462		)	(84		)	—			(546		)
Total Operating Expenses	68			519,112			345,704			(5,521		)	859,363
Operating (Loss) Income	(68		)	123,956			77,572			—			201,460
Interest Expense (Income), Net(1)	50,313			3,005			48,878			—			102,196
Other Expense (Income), Net	2,767			6,575			(28,398		)	—			(19,056		)
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes	(53,148		)	114,376			57,092			—			118,320
Provision (Benefit) for Income Taxes	—			12,509			13,548			—			26,057
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	(144,909		)	(38,071		)	—			182,980			—
Income (Loss) from Continuing Operations	91,761			139,938			43,544			(182,980		)	92,263
(Loss) Income from Discontinued Operations	—			(273		)	(87		)	—			(360		)
Net Income (Loss)	91,761			139,665			43,457			(182,980		)	91,903
Less: Net Income (Loss) Attributable to Noncontrolling Interests	—			—			142			—			142
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	91,761		$	139,665		$	43,315		$	(182,980	)	$	91,761
Net Income (Loss)	$	91,761		$	139,665		$	43,457		$	(182,980	)	$	91,903
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustment	10,257			—			(149,429		)	—			(139,172		)
Change in fair value of interest rate swap agreements	2,388			—			—			—			2,388
Equity in Other Comprehensive (Loss) Income of Subsidiaries	(146,018		)	(129,860		)	—			275,878			—
Total Other Comprehensive (Loss) Income	(133,373		)	(129,860		)	(149,429		)	275,878			(136,784		)
Comprehensive (Loss) Income	(41,612		)	9,805			(105,972		)	92,898			(44,881		)
Comprehensive (Loss) Income Attributable to Noncontrolling Interests	—			—			(3,274		)	—			(3,274		)
Comprehensive (Loss) Income Attributable to Iron Mountain Incorporated	$	(41,612	)	$	9,805		$	(102,698	)	$	92,898		$	(41,607	)

_____________________________________________________________

(1) Included within Interest Expense (Income), Net are intercompany management fees and royalty fees, which are eliminated in our consolidated financial statements.

39

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(5) Selected Consolidated Financial Statements of Parent, Guarantors and Non-Guarantors (Continued)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Continued)

	Six Months Ended June 30, 2019
	Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage rental	$	—		$	814,900		$	517,362		$	—		$	1,332,262
Service	—			485,783			302,725			—			788,508
Intercompany revenues	—			2,312			9,463			(11,775		)	—
Total Revenues	—			1,302,995			829,550			(11,775		)	2,120,770
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	—			523,812			402,834			—			926,646
Intercompany cost of sales	—			9,463			2,312			(11,775		)	—
Selling, general and administrative	149			361,265			161,909			—			523,323
Depreciation and amortization	45			207,548			119,221			—			326,814
Loss (Gain) on disposal/write-down of property, plant and equipment, net	—			27,360			(35,163		)	—			(7,803		)
Total Operating Expenses	194			1,129,448			651,113			(11,775		)	1,768,980
Operating (Loss) Income	(194		)	173,547			178,437			—			351,790
Interest Expense (Income), Net(1)	99,226			12,697			95,827			—			207,750
Other Expense (Income), Net	541			5,014			(5,537		)	—			18
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes	(99,961		)	155,836			88,147			—			144,022
Provision (Benefit) for Income Taxes	—			2,454			18,745			—			21,199
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	(221,963		)	(65,552		)	—			287,515			—
Income (Loss) from Continuing Operations	122,002			218,934			69,402			(287,515		)	122,823
Income (Loss) from Discontinued Operations	—			120			(16		)	—			104
Net Income (Loss)	122,002			219,054			69,386			(287,515		)	122,927
Less: Net Income (Loss) Attributable to Noncontrolling Interests	—			—			925			—			925
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	122,002		$	219,054		$	68,461		$	(287,515	)	$	122,002
Net Income (Loss)	$	122,002		$	219,054		$	69,386		$	(287,515	)	$	122,927
Other Comprehensive Income (Loss):
Foreign Currency Translation Adjustments	1,861			—			10,539			—			12,400
Change in fair value of interest rate swap agreements	(7,605		)	—			—			—			(7,605		)
Equity in Other Comprehensive Income (Loss) of Subsidiaries	9,587			8,277			—			(17,864		)	—
Total Other Comprehensive Income (Loss)	3,843			8,277			10,539			(17,864		)	4,795
Comprehensive Income (Loss)	125,845			227,331			79,925			(305,379		)	127,722
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	—			—			1,877			—			1,877
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$	125,845		$	227,331		$	78,048		$	(305,379	)	$	125,845

_____________________________________________________________

(1) Included within Interest Expense (Income), Net are intercompany management fees and royalty fees, which are eliminated in our consolidated financial statements.

40

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(5) Selected Consolidated Financial Statements of Parent, Guarantors and Non-Guarantors (Continued)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Continued)

	Six Months Ended June 30, 2018
	Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage rental	$	—		$	793,925		$	512,663		$	—		$	1,306,588
Service	—			474,633			322,060			—			796,693
Intercompany revenues	—			2,421			8,796			(11,217		)	—
Total Revenues	—			1,270,979			843,519			(11,217		)	2,103,281
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	—			497,523			402,662			—			900,185
Intercompany cost of sales	—			8,796			2,421			(11,217		)	—
Selling, general and administrative	79			353,087			176,229			—			529,395
Depreciation and amortization	65			198,616			118,117			—			316,798
(Gain) Loss on disposal/write-down of property, plant and equipment, net	—			(818		)	(858		)	—			(1,676		)
Total Operating Expenses	144			1,057,204			698,571			(11,217		)	1,744,702
Operating (Loss) Income	(144		)	213,775			144,948			—			358,579
Interest Expense (Income), Net(1)	100,254			1,497			98,147			—			199,898
Other Expense (Income), Net	1,610			8,135			(8,650		)	—			1,095
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes	(102,008		)	204,143			55,451			—			157,586
Provision (Benefit) for Income Taxes	—			5,797			20,137			—			25,934
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	(232,228		)	(28,981		)	—			261,209			—
Income (Loss) from Continuing Operations	130,220			227,327			35,314			(261,209		)	131,652
(Loss) Income from Discontinued Operations	—			(695		)	(127		)	—			(822		)
Net Income (Loss)	130,220			226,632			35,187			(261,209		)	130,830
Less: Net Income (Loss) Attributable to Noncontrolling Interests	—			—			610			—			610
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	130,220		$	226,632		$	34,577		$	(261,209	)	$	130,220
Net Income (Loss)	$	130,220		$	226,632		$	35,187		$	(261,209	)	$	130,830
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustment	4,622			—			(112,143		)	—			(107,521		)
Change in fair value of interest rate swap agreements	2,203			—			—			—			2,203
Equity in Other Comprehensive (Loss) Income of Subsidiaries	(110,286		)	(91,524		)	—			201,810			—
Total Other Comprehensive (Loss) Income	(103,461		)	(91,524		)	(112,143		)	201,810			(105,318		)
Comprehensive Income (Loss)	26,759			135,108			(76,956		)	(59,399		)	25,512
Comprehensive (Loss) Income Attributable to Noncontrolling Interests	—			—			(1,247		)	—			(1,247		)
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$	26,759		$	135,108		$	(75,709	)	$	(59,399	)	$	26,759

______________________________________________________

(1) Included within Interest Expense (Income), Net are intercompany management fees and royalty fees, which are eliminated in our consolidated financial statements.

41

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(5) Selected Consolidated Financial Statements of Parent, Guarantors and Non-Guarantors (Continued)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six Months Ended June 30, 2019
	Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Cash Flows from Operating Activities:
Cash Flows from Operating Activities—Continuing Operations	$	(75,316	)	$	397,474		$	107,573		$	—		$	429,731
Cash Flows from Operating Activities—Discontinued Operations	—			—			—			—			—
Cash Flows from Operating Activities	(75,316		)	397,474			$	107,573		$	—		$	429,731
Cash Flows from Investing Activities:
Capital expenditures	—			(201,784		)	(165,347		)	—			(367,131		)
Cash paid for acquisitions, net of cash acquired	—			(9,508		)	(35,143		)	—			(44,651		)
Intercompany loans to subsidiaries	430,274			10,696			—			(440,970		)	—
Acquisitions of customer relationships, customer inducements and data center lease-based intangibles	—			(68,153		)	(22,409		)	—			(90,562		)
Investments in joint ventures (see Note 9)	—			(19,222		)	—			—			(19,222		)
Proceeds from sales of property and equipment and other, net	—			54			46,778			—			46,832
Cash Flows from Investing Activities—Continuing Operations	430,274			(287,917		)	(176,121		)	(440,970		)	(474,734		)
Cash Flows from Investing Activities—Discontinued Operations	—			2,564			2,497			—			5,061
Cash Flows from Investing Activities	430,274			(285,353		)	(173,624		)	(440,970		)	(469,673		)
Cash Flows from Financing Activities:
Repayment of revolving credit facility, term loan facilities and other debt	—			(837,712		)	(1,765,210		)	—			(2,602,922		)
Proceeds from revolving credit facility, term loan facilities and other debt	—			1,209,304			1,788,803			—			2,998,107
Debit (payments) balances under cash pools	—			(10,612		)	14,483			(3,871		)	—
Debt (repayment to) financing from and equity (distribution to) contribution from noncontrolling interests, net	—			—			(999		)	—			(999		)
Intercompany loans from parent	—			(410,198		)	(30,772		)	440,970			—
Parent cash dividends	(353,357		)	—			—			—			(353,357		)
Net (payments) proceeds associated with employee stock-based awards	(1,727		)	—			—			—			(1,727		)
Cash Flows from Financing Activities—Continuing Operations	(355,084		)	(49,218		)	6,305			437,099			39,102
Cash Flows from Financing Activities—Discontinued Operations	—			—			—			—			—
Cash Flows from Financing Activities	(355,084		)	(49,218		)	6,305			437,099			39,102
Effect of exchange rates on cash and cash equivalents	—			—			(2,649		)	—			(2,649		)
(Decrease) Increase in cash and cash equivalents	(126		)	62,903			(62,395		)	(3,871		)	(3,489		)
Cash and cash equivalents, including Restricted Cash, beginning of period	132			61,650			169,318			(65,615		)	165,485
Cash and cash equivalents, including Restricted Cash, end of period	$	6		$	124,553		$	106,923		$	(69,486	)	$	161,996

42

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(5) Selected Consolidated Financial Statements of Parent, Guarantors and Non-Guarantors (Continued)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

	Six Months Ended June 30, 2018
	Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Cash Flows from Operating Activities:
Cash Flows from Operating Activities—Continuing Operations	$	(117,979	)	$	409,167		$	102,618		$	—		$	393,806
Cash Flows from Operating Activities—Discontinued Operations	—			(477		)	—			—			(477		)
Cash Flows from Operating Activities	(117,979		)	408,690			102,618			—			393,329
Cash Flows from Investing Activities:
Capital expenditures	—			(142,737		)	(74,864		)	—			(217,601		)
Cash paid for acquisitions, net of cash acquired	—			(1,314,370		)	(352,499		)	—			(1,666,869		)
Intercompany loans to subsidiaries	370,423			19,092			—			(389,515		)	—
Acquisitions of customer relationships, customer inducements and data center lease-based intangibles	—			(24,922		)	(12,311		)	—			(37,233		)
Proceeds from sales of property and equipment and other, net	—			—			207			—			207
Cash Flows from Investing Activities—Continuing Operations	370,423			(1,462,937		)	(439,467		)	(389,515		)	(1,921,496		)
Cash Flows from Investing Activities—Discontinued Operations	—			—			—			—			—
Cash Flows from Investing Activities	370,423			(1,462,937		)	(439,467		)	(389,515		)	(1,921,496		)
Cash Flows from Financing Activities:
Repayment of revolving credit facility, term loan facilities and other debt	—			(3,657,315		)	(4,219,481		)	—			(7,876,796		)
Proceeds from revolving credit facility, term loan facilities and other debt	—			4,531,603			4,412,813			—			8,944,416
Debit (payments) balances under cash pools	—			(7,657		)	2,850			4,807			—
Debt (repayment to) financing from and equity (distribution to) contribution from noncontrolling interests, net	—			—			(1,079		)	—			(1,079		)
Intercompany loans from parent	—			(384,323		)	(5,192		)	389,515			—
Parent cash dividends	(337,052		)	—			—			—			(337,052		)
Net (payments) proceeds associated with employee stock-based awards	(2,259		)	—			—			—			(2,259		)
Net proceeds associated with the Over-Allotment Option exercise	76,192			—			—			—			76,192
Net proceeds associated with the At the Market (ATM) Program	8,716			—			—			—			8,716
Payment of debt financing and stock issuance costs	(412		)	(12,322		)	(651		)	—			(13,385		)
Cash Flows from Financing Activities—Continuing Operations	(254,815		)	469,986			189,260			394,322			798,753
Cash Flows from Financing Activities—Discontinued Operations	—			—			—			—			—
Cash Flows from Financing Activities	(254,815		)	469,986			189,260			394,322			798,753
Effect of exchange rates on cash and cash equivalents	—			—			(8,093		)	—			(8,093		)
(Decrease) Increase in cash and cash equivalents	(2,371		)	(584,261		)	(155,682		)	4,807			(737,507		)
Cash and cash equivalents, including Restricted Cash, beginning of period	2,433			634,317			383,675			(94,726		)	925,699
Cash and cash equivalents, including Restricted Cash, end of period	$	62		$	50,056		$	227,993		$	(89,919	)	$	188,192

43

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(6) Segment Information

Our six reportable operating segments as of December 31, 2018 are described in Note 9 to Notes to Consolidated Financial Statements included in our Annual Report and are as follows:

• North American Records and Information Management Business

• North American Data Management Business

• Western European Business

• Other International Business

• Global Data Center Business

• Corporate and Other Business

There have been no changes made to our reportable operating segments since December 31, 2018, other than the impact of the Consumer Storage Transaction (as defined in Note 9). Prior to the Consumer Storage Transaction, our consumer storage business was a component of our Corporate and Other Business Segment. The previously reported segment information has been restated to conform to the current presentation and reflects the changes to our reportable operating segments that occurred in fourth quarter of 2018 as described in Note 9 to Notes to Consolidated Financial Statements included in our Annual Report. The operations associated with acquisitions completed during the first six months of 2019 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 is as follows:

	North American Records and Information Management Business		North American Data Management Business		Western European Business		Other International Business		Global Data Center Business		Corporate and Other Business			Total Consolidated
For the Three Months Ended June 30, 2019
Total Revenues	$	539,273	$	96,415	$	127,327	$	199,823	$	62,291	$	41,778		$	1,066,907
Storage Rental	313,355		66,750		78,554		128,898		60,582		21,149			669,288
Service	225,918		29,665		48,773		70,925		1,709		20,629			397,619
Depreciation and Amortization	62,691		10,100		14,328		30,760		32,671		13,781			164,331
Depreciation	46,655		7,818		10,476		17,833		19,027		11,913			113,722
Amortization	16,036		2,282		3,852		12,927		13,644		1,868			50,609
Adjusted EBITDA	245,585		53,068		44,163		58,749		27,641		(78,264		)	350,942
Expenditures for Segment Assets	46,545		5,254		24,334		18,829		102,477		12,805			210,244
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	28,596		5,254		22,724		11,955		101,032		12,805			182,366
Cash Paid for Acquisitions, Net of Cash Acquired	—		—		366		4,862		—		—			5,228
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs and third-party commissions	17,949		—		1,244		2,012		1,445		—			22,650
For the Three Months Ended June 30, 2018
Total Revenues	$	539,080	$	100,031	$	133,440	$	207,527	$	54,895	$	25,850		$	1,060,823
Storage Rental	305,895		68,808		82,439		129,611		51,945		16,741			655,439
Service	233,185		31,223		51,001		77,916		2,950		9,109			405,384
Depreciation and Amortization	60,970		9,538		17,500		30,364		22,503		15,345			156,220
Depreciation	48,252		7,217		11,821		18,199		13,120		12,892			111,501
Amortization	12,718		2,321		5,679		12,165		9,383		2,453			44,719
Adjusted EBITDA	244,861		55,280		46,594		60,452		24,901		(64,533		)	367,555
Expenditures for Segment Assets	41,364		3,643		27,559		30,287		265,173		11,052			379,078
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	25,122		3,643		25,096		13,921		43,162		11,052			121,996
Cash Paid for Acquisitions, Net of Cash Acquired	—		—		—		16,188		221,707		—			237,895
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs	16,242		—		2,463		178		304		—			19,187

44

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(6) Segment Information (Continued)

	North American Records and Information Management Business		North American Data Management Business		Western European Business		Other International Business		Global Data Center Business		Corporate and Other Business			Total Consolidated
As of and for the Six Months Ended June 30, 2019
Total Revenues	$	1,066,653	$	193,162	$	256,080	$	400,779	$	123,827	$	80,269		$	2,120,770
Storage Rental	620,341		133,322		159,249		258,371		120,300		40,679			1,332,262
Service	446,312		59,840		96,831		142,408		3,527		39,590			788,508
Depreciation and Amortization	122,693		20,302		29,585		61,359		64,303		28,572			326,814
Depreciation	92,407		15,831		21,423		36,051		38,040		24,581			228,333
Amortization	30,286		4,471		8,162		25,308		26,263		3,991			98,481
Adjusted EBITDA	469,268		103,620		83,372		116,873		53,652		(151,337		)	675,448
Total Assets (1)	5,840,023		877,777		1,406,937		2,703,347		2,330,535		562,363			13,720,982
Expenditures for Segment Assets	102,810		10,886		54,435		50,083		256,182		27,948			502,344
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	57,284		10,886		24,840		27,104		222,589		24,428			367,131
Cash Paid for Acquisitions, Net of Cash Acquired	9,876		—		11,850		19,405		—		3,520			44,651
Acquisitions of Customer Relationships and Customer Inducements and Contract Fulfillment Costs and third-party commissions	35,650		—		17,745		3,574		33,593		—			90,562
As of and for the Six Months Ended June 30, 2018
Total Revenues	$	1,065,923	$	199,995	$	267,515	$	418,294	$	101,498	$	50,056		$	2,103,281
Storage Rental	610,714		138,054		166,391		261,358		97,440		32,631			1,306,588
Service	455,209		61,941		101,124		156,936		4,058		17,425			796,693
Depreciation and Amortization	123,722		19,642		35,056		62,237		44,771		31,370			316,798
Depreciation	97,390		15,240		24,579		37,263		24,500		25,961			224,933
Amortization	26,332		4,402		10,477		24,974		20,271		5,409			91,865
Adjusted EBITDA	470,599		109,132		90,560		121,199		45,691		(134,051		)	703,130
Total Assets (1)	5,010,186		829,682		1,344,699		2,247,071		1,909,088		476,433			11,817,159
Expenditures for Segment Assets	84,545		10,496		35,039		62,447		1,703,185		25,991			1,921,703
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	54,992		10,496		31,143		39,063		56,273		25,634			217,601
Cash Paid for Acquisitions, Net of Cash Acquired	1,551		—		—		19,396		1,645,922		—			1,666,869
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs	28,002		—		3,896		3,988		990		357			37,233

______________________________________________________________

(1) Excludes all intercompany receivables or payables and investment in subsidiary balances. Total assets as of June 30, 2019 reflects the adoption of ASU 2016-02.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(6) Segment Information (Continued)

The accounting policies of the reportable operating segments are the same as those described in Note 2 and in Note 2 to Notes to Consolidated Financial Statements included in our Annual Report. Adjusted EBITDA for each segment is defined as income (loss) from continuing operations before interest expense, net, provision (benefit) for income taxes, depreciation and amortization, and also excludes certain items that we believe are not indicative of our core operating results, specifically: (i) (gain) loss on disposal/write-down of property, plant and equipment, net (including real estate); (ii) intangible impairments; (iii) other expense (income), net (which includes foreign currency transaction (gains) losses, net); and (iv) Significant Acquisition Costs (as defined below). Internally, we use Adjusted EBITDA as the basis for evaluating the performance of, and allocating resources to, our operating segments.

A reconciliation of Adjusted EBITDA to income (loss) from continuing operations on a consolidated basis for the three and six months ended June 30, 2019 and 2018 is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Adjusted EBITDA	$	350,942		$	367,555		$	675,448		$	703,130
(Add)/Deduct:
Provision (Benefit) for Income Taxes	10,646			26,057			21,199			25,934
Other (Income) Expense, Net	(15,192		)	(19,056		)	18			1,095
Interest Expense, Net	105,314			102,196			207,750			199,898
(Gain) loss on disposal/write-down of property, plant and equipment, net	(8,405		)	(546		)	(7,803		)	(1,676		)
Depreciation and Amortization	164,331			156,220			326,814			316,798
Significant Acquisition Costs(1)	1,901			10,421			4,647			29,429
Income (Loss) from Continuing Operations	$	92,347		$	92,263		$	122,823		$	131,652

_______________________________________________________________________________

(1) As defined in Note 9 to Notes to Consolidated Financial Statements included in our Annual Report.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(6) Segment Information (Continued)

Information as to our revenues by product and service lines by segment for the three and six months ended June 30, 2019 and 2018 are as follows:

	North American Records and Information Management Business		North American Data Management Business		Western European Business		Other International Business		Global Data Center Business		Corporate and Other Business		Total Consolidated
For the Three Months Ended June 30, 2019
Records Management(1)	$	442,785	$	—	$	109,369	$	172,433	$	—	$	26,195	$	750,782
Data Management(1)	—		93,152		16,908		18,787		—		15,583		144,430
Information Destruction(1)(2)	96,488		3,263		1,050		8,603		—		—		109,404
Data Center	—		—		—		—		62,291		—		62,291
Total Revenues	$	539,273	$	96,415	$	127,327	$	199,823	$	62,291	$	41,778	$	1,066,907
For the Three Months Ended June 30, 2018
Records Management(1)	$	441,401	$	—	$	113,925	$	179,194	$	—	$	11,801	$	746,321
Data Management(1)	—		97,768		19,393		19,227		—		14,049		150,437
Information Destruction(1)(2)	97,679		2,263		122		9,106		—		—		109,170
Data Center	—		—		—		—		54,895		—		54,895
Total Revenues	$	539,080	$	100,031	$	133,440	$	207,527	$	54,895	$	25,850	$	1,060,823
For the Six Months Ended June 30, 2019
Records Management(1)	$	870,152	$	—	$	218,076	$	345,410	$	—	$	50,540	$	1,484,178
Data Management(1)	—		187,141		36,794		38,014		—		29,729		291,678
Information Destruction(1)(2)	196,501		6,021		1,210		17,355		—		—		221,087
Data Center	—		—		—		—		123,827		—		123,827
Total Revenues	$	1,066,653	$	193,162	$	256,080	$	400,779	$	123,827	$	80,269	$	2,120,770
For the Six Months Ended June 30, 2018
Records Management(1)	$	876,403	$	—	$	227,684	$	360,524	$	—	$	22,205	$	1,486,816
Data Management(1)	—		195,362		39,612		39,705		—		27,851		302,530
Information Destruction(1)(2)	189,520		4,633		219		18,065		—		—		212,437
Data Center	—		—		—		—		101,498		—		101,498
Total Revenues	$	1,065,923	$	199,995	$	267,515	$	418,294	$	101,498	$	50,056	$	2,103,281

____________________________________________________________________________

(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.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(7) Commitments and Contingencies

We are involved in litigation from time to time in the ordinary course of business. A portion of the defense and/or settlement costs associated with such litigation is covered by various commercial liability insurance policies purchased by us and, in limited cases, indemnification from third parties. Our policy is to establish reserves for loss contingencies when the losses are both probable and reasonably able to be estimated. We record legal costs associated with loss contingencies as expenses in the period in which they are incurred. There have been no material updates or changes to the matters disclosed in Note 10 to Notes to Consolidated Financial Statements included in our Annual Report. We believe that the resolution of the matters disclosed in Note 10 to Notes to Consolidated Financial Statements included in our Annual Report will not have a material impact on our consolidated financial condition, results of operations or cash flows.

We have estimated a reasonably possible range for all loss contingencies, including those disclosed in Note 10 to Notes to Consolidated Financial Statements included in our Annual Report and the item below, 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 $17,000 over the next several years, of which certain amounts would be covered by insurance or indemnity arrangements.

In June 2019, we received a notification of assessment from tax and customs authorities in the Netherlands related to a VAT liability of approximately 16,800 Euros. The notification of assessment is related to our customs clearing and logistics business in the Netherlands, which we acquired through the acquisition of Bonded Services of America, Inc. and Bonded Services Acquisition, Ltd. (collectively, “Bonded”) in September 2017. As part of the import and declaration services we provide in the Netherlands, we file import declaration forms to the customs authorities for all goods imported in a particular month and calculate the amount of VAT that is due on the goods being imported. In certain instances, we remit import VAT to the Dutch tax authorities and subsequently are reimbursed by the entity the goods are being imported on behalf of. In other instances, however, the payment of VAT may be deferred and paid upon the sale of the goods to the ultimate end customer in cases where the entity receiving the goods holds a valid license allowing for the deferment of VAT (referred to as an Article 23 license). In the notification of assessment, the Dutch tax authorities have asserted that (i) we inappropriately deferred VAT for goods imported under Article 23 for certain of our customers between March 2017 and August 2018 and (ii) we are liable for the amount of VAT related to those goods for which VAT was inappropriately deferred. We have responded to the notification of assessment and have requested additional information regarding the matter from the Dutch tax authorities.

We believe that the amount, if assessed, would be subject to interest and potential penalties. We have established a reserve for this matter based upon our estimate of the amount of loss that is both probable and estimable. We are in the process of exploring potential recoveries (including insurance recoveries and/or claims against other third parties) against any losses we incur associated with this matter.

(8) Stockholders' Equity Matters

Our board of directors has adopted a dividend policy under which we have paid, and in the future intend to pay, quarterly cash dividends on our common stock. The amount and timing of future dividends will continue to be subject to the approval of our board of directors, in its sole discretion, and to applicable legal requirements.

In fiscal year 2018 and the first six months of 2019, our board of directors declared the following dividends:

Declaration Date	Dividend Per Share		Record Date	Total Amount		Payment Date
February 14, 2018	$	0.5875	March 15, 2018	$	167,969	April 2, 2018
May 24, 2018	0.5875		June 15, 2018	168,078		July 2, 2018
July 24, 2018	0.5875		September 17, 2018	168,148		October 2, 2018
October 25, 2018	0.6110		December 17, 2018	174,935		January 3, 2019
February 7, 2019	0.6110		March 15, 2019	175,242		April 2, 2019
May 22, 2019	0.6110		June 17, 2019	175,389		July 2, 2019

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IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(8) Stockholders' Equity Matters (Continued)

At The Market (ATM) Equity Program

As described in greater detail in Note 12 to Notes to Consolidated Financial Statements included in our Annual Report, we entered into a distribution agreement with a syndicate of 10 banks (the “Agents”) pursuant to which we may sell, from time to time, up to an aggregate sales price of $500,000 of our common stock through the Agents (the “At The Market (ATM) Equity Program”). There were no shares of common stock sold under the At The Market (ATM) Equity Program during the six months ended June 30, 2019. As of June 30, 2019, the remaining aggregate sale price of shares of our common stock available for distribution under the At The Market (ATM) Equity Program was approximately $431,200.

(9) Divestments

On March 19, 2019, we contributed our customer contracts and certain intellectual property and other assets used by us to operate our consumer storage business in the United States and Canada (the "IM Consumer Storage Assets") and approximately $20,000 in cash (gross of certain transaction expenses) (the "Cash Contribution") to a joint venture entity, Makespace LLC (the "Makespace JV"), established by us and Makespace Labs, Inc. ("Makespace"), a consumer storage services provider (the "Consumer Storage Transaction"). Upon the closing of the Consumer Storage Transaction on March 19, 2019, the Makespace JV owned (i) the IM Consumer Storage Assets, (ii) the Cash Contribution and (iii) the customer contracts, intellectual property and certain other assets used by Makespace to operate its consumer storage business in the United States. As part of the Consumer Storage Transaction, we received an equity interest of approximately 34% in the Makespace JV (the "Makespace Investment"). In connection with the Consumer Storage Transaction and the Makespace Investment, we also entered into a storage and service agreement with the Makespace JV to provide certain storage and related services to the Makespace JV (see Note 11).

We have concluded that the divestment of the IM Consumer Storage Assets in the Consumer Storage Transaction does not meet the criteria to be reported as a discontinued operation 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 income (loss) from continuing operations in our Condensed Consolidated Statements of Operations for the six months ended June 30, 2019 through the closing date of the Consumer Storage Transaction and for the three and six months ended June 30, 2018 and the cash flows associated with this business are presented as a component of cash flows from continuing operations in our Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2019 through the closing date of the Consumer Storage Transaction and for the six months ended June 30, 2018.

As a result of the Consumer Storage Transaction, we recorded a gain on sale of approximately $4,200 to Other expense (income), net, in the first quarter of 2019, representing the excess of the fair value of the consideration received over the sum of (i) the carrying value of our consumer storage operations and (ii) the Cash Contribution. At the closing date of the Consumer Storage Transaction, the fair value of the Makespace Investment was approximately $27,500. We account for the Makespace Investment as an equity method investment. The carrying value of the Makespace Investment at June 30, 2019 is $23,896, and is presented as a component of Other within Other assets, net in our Condensed Consolidated Balance Sheet.

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`Table of Contents

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(In Thousands, Except Share and Per Share Data)

(Unaudited)

(10) Significant Acquisition Costs

Significant Acquisition Costs included in the accompanying Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2019 and 2018 are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Cost of sales (excluding depreciation and amortization)	$	1,293	$	1,827	$	2,191	$	2,123
Selling, general and administrative expenses	608		8,594		2,456		27,306
Total Significant Acquisition Costs	$	1,901	$	10,421	$	4,647	$	29,429

Significant Acquisition Costs included in the accompanying Condensed Consolidated Statements of Operations by segment for the three and six months ended June 30, 2019 and 2018 are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
North American Records and Information Management Business	$	—	$	3,017	$	378	$	3,601
North American Data Management Business	—		351		—		351
Western European Business	81		1,427		81		3,579
Other International Business	951		896		1,453		1,433
Global Data Center Business	124		1,159		267		11,340
Corporate and Other Business	745		3,571		2,468		9,125
Total Significant Acquisition Costs	$	1,901	$	10,421	$	4,647	$	29,429

(11) Related Party Transactions

In connection with the Consumer Storage Transaction and the Makespace Investment (both as described more fully in Note 9), we also 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 North American Records and Information Management Business segment. We recognized approximately $7,400 and $7,900 of revenue, respectively, for the three and six months ended June 30, 2019, associated with the Makespace Agreement.

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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, 2019 should be read in conjunction with our Condensed Consolidated Financial Statements and Notes thereto for the three and six months ended June 30, 2019, included herein, and our Consolidated Financial Statements and Notes thereto for the year ended December 31, 2018, included in our Annual Report on Form 10-K filed with the United States Securities and Exchange Commission ("SEC") on February 14, 2019 (our "Annual Report").

FORWARD-LOOKING STATEMENTS

We have made statements in this Quarterly Report on Form 10-Q ("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) commitment to future dividend payments, (2) expected growth of records stored with us from existing customers, (3) expected 2019 consolidated organic storage rental revenue growth rate, consolidated organic total revenue growth rate and capital expenditures, (4) expectation that profits will increase in our emerging markets, (5) expectation that our growth portfolio will become a large part of our business over time, (6) statements regarding our expectation to reduce our leverage ratio and (7) ability to close pending acquisitions. These forward-looking statements are subject to various known and unknown risks, uncertainties and other factors. When we use words such as "believes," "expects," "anticipates," "estimates" 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:

• our ability to remain qualified for taxation as a real estate investment trust for United States federal income tax purposes ("REIT");

• the adoption of alternative technologies and shifts by our customers to storage of data through non-paper based technologies;

• changes in customer preferences and demand for our storage and information management services;

• the cost to comply with current and future laws, regulations and customer demands relating to data security and privacy issues, as well as fire and safety 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;

• our ability or inability to manage growth, expand internationally, complete acquisitions on satisfactory terms, to close pending acquisitions and to integrate acquired companies efficiently;

• changes in the amount of our growth and recurring capital expenditures and our ability to invest according to plan;

• our ability to comply with our existing debt obligations and restrictions in our debt instruments or to obtain additional financing to meet our working capital needs;

• the impact of service interruptions or equipment damage and the cost of power on our data center operations;

• changes in the cost of our debt;

• the impact of alternative, more attractive investments on dividends;

• the cost or potential liabilities associated with real estate necessary for our business;

• the performance of business partners upon whom we depend for technical assistance or management expertise; and

• other trends in competitive or economic conditions affecting our financial condition or results of operations not presently contemplated.

You should not rely upon forward-looking statements except as statements of our present intentions and of our present expectations, which may or may not occur. You should read these cautionary statements as being applicable to all forward-looking statements wherever they appear. Except as required by law, we undertake no obligation to release publicly the result of any revision to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Readers are also urged to carefully review and consider the various disclosures we have made in this Quarterly Report, as well as our other periodic reports filed with the SEC including under "Risk Factors" in our Annual 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 month periods ended June 30, 2019 within each section.

IODC Acquisition

On January 10, 2018, we completed the acquisition of the United States operations of IODC (the "IODC Transaction"). At the closing of the IODC Transaction, we paid approximately $1,347.0 million. In February 2019, we paid approximately $31.0 million in additional purchase price associated with the execution of customer contracts from the closing through the one-year anniversary of the IODC Transaction. See Note 6 to Notes to Consolidated Financial Statements included in our Annual Report for additional information.

Divestments

a. Consumer Storage Transaction

On March 19, 2019, we contributed our customer contracts and certain intellectual property and other assets used by us to operate our consumer storage business in the United States and Canada (the "IM Consumer Storage Assets") and approximately $20.0 million in cash (gross of certain transaction expenses) (the "Cash Contribution") to a joint venture entity, Makespace LLC (the "Makespace JV"), established by us and Makespace Labs, Inc. ("Makespace"), a consumer storage services provider (the "Consumer Storage Transaction"). Upon the closing of the Consumer Storage Transaction on March 19, 2019, the Makespace JV owned (i) the IM Consumer Storage Assets, (ii) the Cash Contribution and (iii) the customer contracts, intellectual property and certain other assets used by Makespace to operate its consumer storage business in the United States. As part of the Consumer Storage Transaction, we received an equity interest of approximately 34% in the Makespace JV (the "Makespace Investment").

As described in Note 9 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report, the divestment of the IM Consumer Storage Assets in the Consumer Storage Transaction does not meet the criteria to be reported as a discontinued operations in our consolidated financial statements. In connection with the Consumer Storage Transaction and the Makespace Investment, we also 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 North American Records and Information Management Business segment. We recognized approximately $7.4 million and $7.9 million of revenue, respectively, for the three and six months ended June 30, 2019 associated with the Makespace Agreement.

As a result of the Consumer Storage Transaction, we recorded a gain on sale of approximately $4.2 million to Other expense (income), net, in the first quarter of 2019, representing the excess of the fair value of the consideration received over the sum of (i) carrying value of our consumer storage operations and (ii) the Cash Contribution.

b. IMFS Divestment

On September 28, 2018, we sold substantially all of the assets associated with our fulfillment services business in the United States for total consideration of approximately $3.0 million (the "IMFS Divestment"). As described in Note 13 to Notes to Consolidated Financial Statements in our Annual Report, we have concluded that the IMFS 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. Our fulfillment services business represented approximately $6.8 million and $14.2 million of total revenues and approximately $0.0 million and $1.2 million of income from continuing operations for the three and six months ended June 30, 2018, respectively.

Significant Acquisition Costs

We currently estimate total acquisition and integration expenditures associated with our acquisition of Recall Holdings Limited ("Recall") (the "Recall Transaction") and acquisition expenditures associated with the IODC Transaction to be approximately $405.0 million, the substantial majority of which was incurred prior to the end of 2018. From January 1, 2015 through June 30, 2019, we have incurred cumulative operating and capital expenditures associated with the Recall Transaction and the IODC Transaction of $394.1 million, including $319.2 million of Significant Acquisition Costs (as defined in Note 9 to Notes to Consolidated Financial Statements included in our Annual Report) and $74.9 million of capital expenditures. We expect the remaining amount of these operating and capital expenditures will be primarily related to moving costs associated with facility consolidation and system upgrade costs.

52

Immaterial Restatement

In June 2019, we received a notification of assessment from tax and customs authorities in the Netherlands related to a value-added tax (“VAT”) liability which relates to periods prior to January 1, 2019. We have established a reserve for this matter based upon our estimate of the amount of loss that is both probable and estimable, and have reflected this reserve through an immaterial restatement of our consolidated financial statements. As a result, certain line items in our Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2018 have been restated to reflect the immaterial restatement. See Note 2.n. to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding the effect of the immaterial restatement on certain line items in our Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2018.

General

Our revenues consist of storage rental revenues as well as service revenues and are reflected net of sales and value added taxes. Storage rental revenues, which are considered a key driver of financial performance for the storage and information management services industry, consist primarily of recurring periodic rental charges related to the storage of materials or data (generally on a per unit basis) that are typically retained by customers for many years, technology escrow services that protect and manage source code, data backup and storage on our proprietary cloud and revenues associated with our data center operations. Service revenues include charges for related service activities, the most significant of which include: (1) the handling of records, including the addition of new records, temporary removal of records from storage, refiling of removed records and courier operations, consisting primarily of the pickup and delivery of records upon customer request; (2) destruction services, consisting primarily of secure shredding of sensitive documents and the related sale of recycled paper, the price of which can fluctuate from period to period, and customer termination and permanent removal fees; (3) other services, including the scanning, imaging and document conversion services of active and inactive records and project revenues; (4) consulting services; and (5) cloud-related data protection, preservation, restoration and recovery. Our service revenue growth has been negatively impacted by declining activity rates as stored records are becoming less active. While customers continue to store their records and tapes with us, they are less likely than they have been in the past to retrieve records for research and other purposes, thereby reducing service activity levels.

Cost of sales (excluding depreciation and amortization) consists primarily of wages and benefits for field personnel, facility occupancy costs (including rent and utilities), transportation expenses (including vehicle leases and fuel), other product cost of sales and other equipment costs and supplies. Of these, wages and benefits and facility occupancy costs are the most significant. Selling, general and administrative expenses consist primarily of wages and benefits for management, administrative, information technology, sales, account management and marketing personnel, as well as expenses related to communications and data processing, travel, professional fees, bad debts, training, office equipment and supplies.

The expansion of our international businesses has impacted the major cost of sales components and selling, general and administrative expenses. Our international operations are more labor intensive relative to revenue than our operations in North America and, therefore, labor costs are a higher percentage of international segment revenue. In addition, the overhead structure of our expanding international operations has generally not achieved the same level of overhead leverage as our North American segments, which may result in an increase in selling, general and administrative expenses as a percentage of consolidated revenue as our international operations become a larger percentage of our consolidated results.

Our consolidated revenues and expenses are subject to the net effect of foreign currency translation related to our operations outside the United States. It is difficult to predict the future fluctuations of foreign currency exchange rates and how those fluctuations will impact our Consolidated Statements of Operations. As a result of the relative size of our international operations, these fluctuations may be material on individual balances. Our revenues and expenses from our international operations are generally denominated in the local currency of the country in which they are derived or incurred. Therefore, the impact of currency fluctuations on our operating income and operating margin is partially mitigated. In order to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency fluctuations, we compare the percentage change in the results from one period to another period in this report using constant currency presentation. The constant currency growth rates are calculated by translating the 2018 results at the 2019 average exchange rates. Constant currency growth rates are a non-GAAP measure.

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The following table is a comparison of underlying average exchange rates of the foreign currencies that had the most significant impact on our United States dollar-reported revenues and expenses:

	Percentage of United States Dollar-Reported Revenue for the Three Months Ended June 30,				Average Exchange Rates for the Three Months Ended June 30,				Percentage Strengthening / (Weakening) of Foreign Currency
	2019		2018		2019		2018
Australian dollar	3.4	%	3.8	%	$	0.700	$	0.757	(7.5	)%
Brazilian real	2.6	%	2.9	%	$	0.255	$	0.278	(8.3	)%
British pound sterling	6.4	%	6.8	%	$	1.285	$	1.361	(5.6	)%
Canadian dollar	5.7	%	6.0	%	$	0.748	$	0.775	(3.5	)%
Euro	7.5	%	7.2	%	$	1.124	$	1.192	(5.7	)%

	Percentage of United States Dollar-Reported Revenue for the Six Months Ended June 30,				Average Exchange Rates for the Six Months Ended June 30,				Percentage Strengthening / (Weakening) of Foreign Currency
	2019		2018		2019		2018
Australian dollar	3.4	%	3.8	%	$	0.706	$	0.771	(8.4	)%
Brazilian real	2.6	%	3.0	%	$	0.260	$	0.293	(11.3	)%
British pound sterling	6.5	%	6.8	%	$	1.294	$	1.376	(6.0	)%
Canadian dollar	5.7	%	6.0	%	$	0.750	$	0.783	(4.2	)%
Euro	7.5	%	7.1	%	$	1.130	$	1.211	(6.7	)%

The percentage of United States dollar-reported revenues for all other foreign currencies was 12.6% and 12.7% for the three and six months ended June 30, 2019, respectively, and 12.6% and 12.7% for the three and six months ended June 30, 2018, respectively.

54

Non-GAAP Measures

Adjusted EBITDA

Adjusted EBITDA is defined as income (loss) from continuing operations before interest expense, net, provision (benefit) for income taxes, depreciation and amortization, and also excludes certain items that we believe are not indicative of our core operating results, specifically: (1) (gain) loss on disposal/write-down of property, plant and equipment, net (including real estate); (2) intangible impairments; (3) other expense (income), net (which includes foreign currency transaction (gains) losses, net); and (4) Significant Acquisition Costs. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenues. We use multiples of current or projected Adjusted EBITDA in conjunction with our discounted cash flow models to determine our estimated overall enterprise valuation and to evaluate acquisition targets. We believe Adjusted EBITDA and Adjusted EBITDA Margin provide our current and potential investors with relevant and useful information regarding our ability to generate cash flow to support business investment. These measures are an integral part of the internal reporting system we use to assess and evaluate the operating performance of our business.

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. Finally, 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, income (loss) from continuing operations, net income (loss) or cash flows from operating activities from continuing operations (as determined in accordance with GAAP).

Reconciliation of Income (Loss) from Continuing Operations to Adjusted EBITDA (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Income (Loss) from Continuing Operations	$	92,347		$	92,263		$	122,823		$	131,652
Add/(Deduct):
Provision (Benefit) for Income Taxes	10,646			26,057			21,199			25,934
Other (Income) Expense, Net	(15,192		)	(19,056		)	18			1,095
Interest Expense, Net	105,314			102,196			207,750			199,898
(Gain) Loss on Disposal/Write-Down of Property, Plant and Equipment, Net	(8,405		)	(546		)	(7,803		)	(1,676		)
Depreciation and Amortization	164,331			156,220			326,814			316,798
Significant Acquisition Costs	1,901			10,421			4,647			29,429
Adjusted EBITDA	$	350,942		$	367,555		$	675,448		$	703,130

55

Adjusted EPS

Adjusted EPS is defined as reported earnings per share fully diluted from continuing operations excluding: (1) (gain) loss on disposal/write-down of property, plant and equipment, net (including real estate); (2) intangible impairments; (3) other expense (income), net (which includes foreign currency transaction (gains) losses, net); (4) Significant Acquisition Costs; and (5) the tax impact of reconciling items and discrete tax items. Adjusted EPS includes income (loss) attributable to noncontrolling interests. 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 Continuing Operations to Adjusted EPS—Fully Diluted from Continuing Operations:

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Reported EPS—Fully Diluted from Continuing Operations	$	0.32		$	0.32		$	0.42		$	0.46
Add/(Deduct):
Income (Loss) Attributable to Noncontrolling Interests	—			—			—			—
Other (Income) Expense, Net	(0.05		)	(0.07		)	—			—
(Gain) Loss on Disposal/Write-Down of Property, Plant and Equipment, Net	(0.03		)	—			(0.03		)	(0.01		)
Significant Acquisition Costs	0.01			0.04			0.02			0.10
Tax Impact of Reconciling Items and Discrete Tax Items(1)	(0.01		)	0.01			(0.01		)	(0.05		)
Adjusted EPS—Fully Diluted from Continuing Operations(2)	$	0.23		$	0.30		$	0.40		$	0.51

_______________________________________________________________________________

(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, 2019 and 2018, respectively, is primarily due to (i) the reconciling items above, which impact our reported income (loss) from continuing operations before provision (benefit) for income taxes but have an insignificant impact on our reported 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, 2019 and 2018 was 17.7% and 22.0%, 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") and us 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 ("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, modifications to FFO (Nareit) are common among REITs as companies seek to provide financial measures that most meaningfully reflect their particular business. Our definition of FFO (Normalized) excludes certain items included in FFO (Nareit) that we believe are not indicative of our core operating results, specifically: (1) (gain) loss on disposal/write-down of property, plant and equipment (excluding real estate), net; (2) intangible impairments; (3) other expense (income), net (which includes foreign currency transaction (gains) losses, net); (4) real estate financing lease depreciation; (5) Significant Acquisition Costs; (6) the tax impact of reconciling items and discrete tax items; (7) loss (income) from discontinued operations, net of tax; and (8) loss (gain) on sale of discontinued operations, net of tax.

Reconciliation of Net Income (Loss) to FFO (Nareit) and FFO (Normalized) (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Net Income (Loss)	$	92,475		$	91,903		$	122,927		$	130,830
Add/(Deduct):
Real Estate Depreciation(1)	74,161			69,908			147,240			139,441
Gains on Sale of Real Estate, Net of Tax	(30,512		)	—			(30,512		)	—
Data Center Lease-Based Intangible Assets Amortization(2)	11,372			7,563			23,981			18,401
FFO (Nareit)	147,496			169,374			263,636			288,672
Add/(Deduct):
(Gain) Loss on Disposal/Write-Down of Property, Plant and Equipment (Excluding Real Estate), Net	27,587			(546		)	28,189			(1,676		)
Other (Income) Expense, Net(3)	(15,192		)	(19,056		)	18			1,095
Real Estate Financing Lease Depreciation	3,113			3,503			6,617			6,949
Significant Acquisition Costs	1,901			10,421			4,647			29,429
Tax Impact of Reconciling Items and Discrete Tax Items(4)	(10,168		)	2,002			(10,144		)	(15,008		)
(Income) Loss from Discontinued Operations, Net of Tax(5)	(128		)	360			(104		)	822
FFO (Normalized)	$	154,609		$	166,058		$	292,859		$	310,283

_______________________________________________________________________________

(1) Includes depreciation expense related to owned real estate assets (land improvements, buildings, building improvements, leasehold improvements and racking), excluding depreciation related to real estate financing leases.

(2) Includes amortization expense for data center in-place lease intangible assets and data center tenant relationship intangible assets as discussed in Note 2.b. to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report.

(3) Includes foreign currency transaction (gains) losses, net of $(19.3) million and $(1.6) million in the three and six months ended June 30 2019, respectively, and $(18.6) million and $3.2 million in the three and six months ended June 30, 2018, respectively. See Note 2.k. to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding the components of Other (income) expense, net.

(4) Represents the tax impact of (i) the reconciling items above, which impact our reported income (loss) from continuing operations before provision (benefit) for income taxes but have an insignificant impact on our reported provision (benefit) for income taxes and (ii) other discrete tax items. Discrete tax items resulted in a (benefit) provision for income taxes of $(5.9) million and $(6.5) million for the three and six months ended June 30, 2019, respectively, and $2.9 million and $(10.6) million for the three and six months ended June 30, 2018, respectively.

(5) Net of a de minimis tax benefit for the three and six months ended June 30, 2019 and 2018.

57

Critical Accounting Policies

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 policies 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 policies 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 policies have occurred since December 31, 2018, other than the adoption of Accounting Standards Update No. 2016-02, Leases (Topic 842), as amended ("ASU 2016-02"), as described in Note 2.d. to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report.

Recent Accounting Pronouncements

See Note 2.l. to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for a description of recently issued accounting pronouncements, including those recently adopted.

58

Results of Operations

Comparison of the three and six months ended June 30, 2019 to the three and six months ended June 30, 2018 (in thousands):

	Three Months Ended June 30,
							Dollar Change			Percentage Change
	2019			2018
Revenues	$	1,066,907		$	1,060,823		$	6,084		0.6	%
Operating Expenses	873,792			859,363			14,429			1.7	%
Operating Income	193,115			201,460			(8,345		)	(4.1	)%
Other Expenses, Net	100,768			109,197			(8,429		)	(7.7	)%
Income from Continuing Operations	92,347			92,263			84			0.1	%
Income (Loss) from Discontinued Operations, Net of Tax	128			(360		)	488			(135.6	)%
Net Income	92,475			91,903			572			0.6	%
Net Income (Loss) Attributable to Noncontrolling Interests	34			142			(108		)	(76.1	)%
Net Income Attributable to Iron Mountain Incorporated	$	92,441		$	91,761		$	680		0.7	%
Adjusted EBITDA(1)	$	350,942		$	367,555		$	(16,613	)	(4.5	)%
Adjusted EBITDA Margin(1)	32.9		%	34.6		%

	Six Months Ended June 30,
							Dollar Change			Percentage Change
	2019			2018
Revenues	$	2,120,770		$	2,103,281		$	17,489		0.8	%
Operating Expenses	1,768,980			1,744,702			24,278			1.4	%
Operating Income	351,790			358,579			(6,789		)	(1.9	)%
Other Expenses, Net	228,967			226,927			2,040			0.9	%
Income from Continuing Operations	122,823			131,652			(8,829		)	(6.7	)%
Income (Loss) from Discontinued Operations, Net of Tax	104			(822		)	926			(112.7	)%
Net Income	122,927			130,830			(7,903		)	(6.0	)%
Net Income Attributable to Noncontrolling Interests	925			610			315			51.6	%
Net Income Attributable to Iron Mountain Incorporated	$	122,002		$	130,220		$	(8,218	)	(6.3	)%
Adjusted EBITDA(1)	$	675,448		$	703,130		$	(27,682	)	(3.9	)%
Adjusted EBITDA Margin(1)	31.8		%	33.4		%

______________________________________________________________

(1) See "Non-GAAP Measures—Adjusted EBITDA" in this Quarterly Report for the definitions of Adjusted EBITDA and Adjusted EBITDA Margin, a reconciliation of Adjusted EBITDA to Income (Loss) from Continuing Operations and a discussion of why we believe these non-GAAP measures provide relevant and useful information to our current and potential investors.

59

REVENUES

Consolidated revenues consists of the following (in thousands):

	Three Months Ended June 30,							Percentage Change
					Dollar Change			Actual		Constant Currency(1)		Organic Growth(2)
	2019		2018
Storage Rental	$	669,288	$	655,439	$	13,849		2.1	%	4.6	%	2.4	%
Service	397,619		405,384		(7,765		)	(1.9	)%	0.7	%	(2.0	)%
Total Revenues	$	1,066,907	$	1,060,823	$	6,084		0.6	%	3.1	%	0.7	%

	Six Months Ended June 30,							Percentage Change
					Dollar Change			Actual		Constant Currency(1)		Organic Growth(2)
	2019		2018
Storage Rental	$	1,332,262	$	1,306,588	$	25,674		2.0	%	4.8	%	2.2	%
Service	788,508		796,693		(8,185		)	(1.0	)%	2.1	%	(0.2	)%
Total Revenues	$	2,120,770	$	2,103,281	$	17,489		0.8	%	3.8	%	1.3	%

_______________________________________________________________________________

(1) Constant currency growth rates are calculated by translating the 2018 results at the 2019 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.

Storage Rental Revenues

In the three and six months ended June 30, 2019, the increase in reported consolidated storage rental revenues was driven by the favorable impact of acquisitions/divestitures and consolidated organic storage rental revenue growth, partially offset by unfavorable fluctuations in foreign currency exchange rates. The net impact of acquisitions/divestitures contributed 2.6% to the reported storage rental revenue growth rates for the six months ended June 30, 2019 compared to the prior year period, primarily driven by acquisitions in our Global Data Center Business segment. Organic storage rental revenue growth of 2.2% in the six months ended June 30, 2019 compared to the prior year period was driven by organic storage rental revenue growth of 1.6% in our North American Records and Information Management Business segment due to revenue management partially offset by volume decreases, as well as organic storage rental revenue growth of 2.8% and 4.2% in our Western European Business and Other International Business segments, respectively, primarily a result of volume increases and, to a lesser extent, revenue management. Organic storage rental revenue growth in our Global Data Center Business segment was 5.7% for the six months ended June 30, 2019 compared to the prior year period, primarily related to a $1.7 million lease modification fee that benefited organic storage rental revenue growth for the segment by 1.7%. Organic storage rental revenue growth in our North American Data Management Business segment was negative 2.5% for the six months ended June 30, 2019 compared to the prior year period due to lower storage volume, partially offset by the impact of revenue management. Excluding the impact of acquisitions/divestitures, global records management net volumes as of June 30, 2019 increased by 0.4% over the ending volume as of June 30, 2018. Including the impact of acquisitions/divestitures, global records management net volumes as of June 30, 2019 increased by 1.4% over the ending volume at June 30, 2018, supported by net volume increases of 1.9% and 6.5% in our Western European Business and Other International Business segments, respectively, partially offset by a net volume decrease of 1.0% in our North American Records and Information Management Business segment. Foreign currency exchange rate fluctuations decreased our reported storage rental revenue growth rate for the six months ended June 30, 2019 by 2.8%, compared to the prior year period.

60

Service Revenues

In the three and six months ended June 30, 2019, the decrease in reported consolidated service revenues was driven by unfavorable fluctuations in foreign currency exchange rates and negative organic service revenue growth, partially offset by the favorable impact of acquisitions/divestitures. Foreign currency exchange rate fluctuations decreased our reported service revenue growth rate for the six months ended June 30, 2019 by 3.1%, compared to the prior year period. In the three months ended June 30, 2019, organic service revenue growth was negative 2.0% compared to the prior year period, primarily driven by negative organic service revenue growth of 2.1% in our North American Records and Information Management Business segment, primarily due to recent declines in recycled paper prices and lower destruction activity. In the six months ended June 30, 2019, organic service revenue growth was negative 0.2% compared to the prior year period, primarily driven by continued declines in organic service revenue activity levels in our North American Data Management Business segment resulting in negative 4.9% organic service revenue growth in this segment, as the storage business in this segment becomes more archival in nature and tape volumes decline, and flat organic service revenue growth in our North American Records and Information Management Business segment reflecting increased secured shredding revenues and project activity which were fully offset by lower destructions and recent declines in recycled paper prices. The negative growth in organic service revenue was partially offset by organic service revenue growth of 2.1% in our Western European Business segment, primarily due to higher destruction activity. The net impact of acquisitions/divestitures contributed 2.3% to the reported service revenue growth rates for the six months ended June 30, 2019, compared to the prior year period.

Total Revenues

For the reasons stated above, our reported consolidated revenues increased $6.1 million, or 0.6%, to $1,066.9 million and $17.5 million, or 0.8%, to $2,120.8 million for the three and six months ended June 30, 2019, respectively, from $1,060.8 million and $2,103.3 million for the three and six months ended June 30, 2018, respectively. The net impact of acquisitions/divestitures contributed 2.5% to the reported consolidated revenue growth rate for the six months ended June 30, 2019 compared to the prior year period. Consolidated organic revenue growth was 1.3% in the six months ended June 30, 2019 compared to the prior year period. Foreign currency exchange rate fluctuations decreased our reported consolidated revenue growth rate for the six months ended June 30, 2019 by 3.0%, compared to the prior year period.

Organic Growth—Eight-Quarter Trend

	2017				2018								2019
	Third Quarter		Fourth Quarter		First Quarter		Second Quarter		Third Quarter		Fourth Quarter		First Quarter		Second Quarter
Storage Rental Revenue	3.5	%	4.2	%	3.7	%	1.9	%	2.3	%	1.9	%	2.0	%	2.4	%
Service Revenue	(0.2	)%	(0.1	)%	1.4	%	7.6	%	7.1	%	6.1	%	1.8	%	(2.0	)%
Total Revenues	2.0	%	2.5	%	2.8	%	4.1	%	4.1	%	3.5	%	1.9	%	0.7	%

We expect our consolidated organic storage rental revenue growth rate for 2019 to be approximately 2.2% to 2.8% and our consolidated organic total revenue growth rate to be approximately 1.3% to 2.0%. During the past eight quarters, our organic storage rental revenue growth rate has ranged between 1.9% and 4.2%. Consolidated organic storage rental revenue growth and consolidated total organic revenue growth for the second quarter of 2018 were negatively impacted by 0.8% and 0.5%, respectively, related to a $4.2 million customer termination fee in our Global Data Center Business segment in the second quarter of 2017. Consolidated organic storage rental revenue growth and consolidated total organic revenue growth for the second quarter of 2019 were benefited by 0.3% and 0.2%, respectively, related to a $1.7 million customer lease modification fee in our Global Data Center Business segment. We expect similar benefits in the third and fourth quarters of 2019 related to this modification fee, which will total approximately $5.4 million for the full year 2019. Our organic storage rental revenue growth rates have declined over the past two fiscal years, as organic storage rental revenue growth for full year 2017 and 2018 was 3.9% and 2.4%, respectively. At various points in the economic cycle, organic storage rental revenue growth may be influenced by changes in pricing and volume. In 2018 and in the six months ended June 30, 2019, we experienced modest volume declines in our North American Records and Information Management Business and North American Data Management Business segments, with organic storage rental revenue growth coming primarily from revenue management in these segments and volume growth in our Western European Business and Other International Business segments. Within these business segments, we expect these trends to continue into the next few years.

61

The organic growth rate for service revenue is inherently more volatile than the organic growth rate for storage rental revenues due to the more discretionary nature of certain services we offer, such as large special projects, and, as a commodity, the volatility of pricing for recycled paper. These revenues, which are often event-driven and impacted to a greater extent by economic downturns as customers defer or cancel the purchase of certain services as a way to reduce their short-term costs, may be difficult to replicate in future periods. The organic growth rate for total service revenues over the past eight quarters reflects reduced retrieval/re-file activity and a related decrease in transportation revenues within our North American Records and Information Management Business and Western European Business segments, as well as continued declines in service revenue activity levels in our North American Data Management Business segment, as the storage business becomes more archival in nature and tape volumes decline. The recent increases in organic service revenue growth rates of 7.6%, 7.1% and 6.1% in the second, third and fourth quarters of 2018 reflect a strong contribution from our secure shredding business, which benefited from higher recycled paper prices, higher destruction activity and acquisitions of customer relationships. Organic service revenue growth declined to 1.8% and (2.0)% for the first and second quarter of 2019, respectively, reflecting declining recycled paper prices and moderation of destruction activity compared to previous quarters. We expect these trends to continue throughout 2019.

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
					Dollar Change			Actual		Constant Currency
	2019		2018									2019		2018
Labor	$	206,623	$	207,099	$	(476	)	(0.2	)%	3.0	%	19.4	%	19.5	%	(0.1	)%
Facilities	176,950		162,450		14,500			8.9	%	11.9	%	16.6	%	15.3	%	1.3	%
Transportation	41,959		40,084		1,875			4.7	%	7.5	%	3.9	%	3.8	%	0.1	%
Product Cost of Sales and Other	38,277		40,004		(1,727		)	(4.3	)%	(0.5	)%	3.6	%	3.8	%	(0.2	)%
Significant Acquisition Costs	1,293		1,827		(534		)	(29.2	)%	(28.0	)%	0.1	%	0.2	%	(0.1	)%
Total Cost of Sales	$	465,102	$	451,464	$	13,638		3.0	%	6.3	%	43.6	%	42.6	%	1.0	%

	Six Months Ended June 30,							Percentage Change				% of Consolidated Revenues				Percentage Change (Favorable)/ Unfavorable
					Dollar Change			Actual		Constant Currency
	2019		2018									2019		2018
Labor	$	411,914	$	416,006	$	(4,092	)	(1.0	)%	2.8	%	19.4	%	19.8	%	(0.4	)%
Facilities	351,669		324,562		27,107			8.4	%	11.7	%	16.6	%	15.4	%	1.2	%
Transportation	82,999		78,357		4,642			5.9	%	9.3	%	3.9	%	3.7	%	0.2	%
Product Cost of Sales and Other	77,873		79,137		(1,264		)	(1.6	)%	2.7	%	3.7	%	3.8	%	(0.1	)%
Significant Acquisition Costs	2,191		2,123		68			3.2	%	7.8	%	0.1	%	0.1	%	—	%
Total Cost of Sales	$	926,646	$	900,185	$	26,461		2.9	%	6.6	%	43.7	%	42.8	%	0.9	%

Labor

Labor expenses decreased to 19.4% of consolidated revenues in the six months ended June 30, 2019 compared to 19.8% in the six months ended June 30, 2018. The decrease in labor expenses as a percentage of consolidated revenues was primarily driven by improvements across our North American Records and Information Management Business, North American Data Management Business, Western European Business and Other International Business segments, partially attributable to ongoing cost management initiatives. On a constant dollar basis, labor expenses for the six months ended June 30, 2019 increased by $11.1 million, or 2.8%, compared to the prior year period, primarily driven by acquisitions in our Adjacent Businesses operating segment within our Corporate and Other Business segment, as well as increased labor costs related to growth of our shredding operations within our North American Records and Information Management Business segment.

62

Facilities

Facilities expenses increased to 16.6% of consolidated revenues in the six months ended June 30, 2019 compared to 15.4% in the six months ended June 30, 2018. The 120 basis point increase in facilities expenses as a percentage of consolidated revenues was driven primarily by acquisitions in our Global Data Center Business segment and our Adjacent Businesses operating segment within our Corporate and Other Business segment. On a constant dollar basis, facilities expenses for the six months ended June 30, 2019 increased by $36.9 million, or 11.7%, compared to the prior year period, driven by higher rent expense, insurance costs and building maintenance, in part driven by the acquisitions mentioned above.

Transportation

Transportation expenses increased to 3.9% of consolidated revenues in the six months ended June 30, 2019 compared to 3.7% in the six months ended June 30, 2018. The increase in transportation expenses as a percentage of consolidated revenues was primarily driven by increases in third party carrier expenses, in part due to recent acquisitions in our Adjacent Businesses operating segment within our Corporate and Other Business segment. On a constant dollar basis, transportation expenses for the six months ended June 30, 2019 increased by $7.1 million, or 9.3%, compared to the prior year period, primarily driven by acquisitions in our Adjacent Businesses operating segment within our Corporate and Other Business segment.

Product Cost of Sales and Other

Product cost of sales and other, which includes cartons, media and other service, storage and supply costs and is highly correlated to service revenue streams, particularly project revenues, were 3.7% of consolidated revenues for the six months ended June 30, 2019 compared to 3.8% in the six months ended June 30, 2018. On a constant dollar basis, product cost of sales and other increased by $2.0 million, or 2.7%, compared to the prior year period, primarily driven by special project costs.

Significant Acquisition Costs

Significant Acquisition Costs included in cost of sales were $2.2 million and $2.1 million in the six months ended June 30, 2019 and 2018, respectively, and primarily consisted of employee severance costs and facility integration costs associated with the Recall Transaction.

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Selling, General and Administrative Expenses

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
					Dollar Change			Actual		Constant Currency
	2019		2018									2019		2018
General and Administrative	$	143,842	$	137,481	$	6,361		4.6	%	7.1	%	13.5	%	13.0	%	0.5	%
Sales, Marketing & Account Management	62,536		63,537		(1,001		)	(1.6	)%	0.6	%	5.9	%	6.0	%	(0.1	)%
Information Technology	42,029		37,248		4,781			12.8	%	14.5	%	3.9	%	3.5	%	0.4	%
Bad Debt Expense	3,749		5,365		(1,616		)	(30.1	)%	(29.2	)%	0.4	%	0.5	%	(0.1	)%
Significant Acquisition Costs	608		8,594		(7,986		)	(92.9	)%	(92.8	)%	0.1	%	0.8	%	(0.7	)%
Total Selling, General and Administrative Expenses	$	252,764	$	252,225	$	539		0.2	%	2.4	%	23.7	%	23.8	%	(0.1	)%

	Six Months Ended June 30,							Percentage Change				% of Consolidated Revenues				Percentage Change (Favorable)/ Unfavorable
					Dollar Change			Actual		Constant Currency
	2019		2018									2019		2018
General and Administrative	$	295,174	$	281,214	$	13,960		5.0	%	7.8	%	13.9	%	13.4	%	0.5	%
Sales, Marketing & Account Management	128,706		132,410		(3,704		)	(2.8	)%	(0.5	)%	6.1	%	6.3	%	(0.2	)%
Information Technology	88,200		76,752		11,448			14.9	%	16.9	%	4.2	%	3.6	%	0.6	%
Bad Debt Expense	8,787		11,713		(2,926		)	(25.0	)%	(23.5	)%	0.4	%	0.6	%	(0.2	)%
Significant Acquisition Costs	2,456		27,306		(24,850		)	(91.0	)%	(90.9	)%	0.1	%	1.3	%	(1.2	)%
Total Selling, General and Administrative Expenses	$	523,323	$	529,395	$	(6,072	)	(1.1	)%	1.2	%	24.7	%	25.2	%	(0.5	)%

General and Administrative

General and administrative expenses increased to 13.9% of consolidated revenues in the six months ended June 30, 2019 compared to 13.4% in the six months ended June 30, 2018. The increase in general and administrative expenses as a percentage of consolidated revenues was driven mainly by higher compensation and professional fees within the Corporate and Other Business segment, primarily associated with our new global operations support team that is tasked with driving operational improvements, and acquisitions in the Global Data Center Business segment. On a constant dollar basis, general and administrative expenses for the six months ended June 30, 2019 increased by $21.4 million, or 7.8%, compared to the prior year period, primarily driven by increases in compensation and professional fees related to our global operations support team.

Sales, Marketing & Account Management

Sales, marketing and account management expenses decreased to 6.1% of consolidated revenues in the six months ended June 30, 2019 compared to 6.3% in the six months ended June 30, 2018. The decrease in sales, marketing and account management expenses as a percentage of consolidated revenues was driven by a decrease in compensation expense, primarily due to lower commissions expense and marketing costs. On a constant dollar basis, sales, marketing and account management expenses for the six months ended June 30, 2019 decreased by $0.6 million, or 0.5%, compared to the prior year period, primarily driven by lower marketing costs.

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Information Technology

Information technology expenses increased to 4.2% of consolidated revenues in the six months ended June 30, 2019 compared to 3.6% in the six months ended June 30, 2018. Information technology expenses as a percentage of consolidated revenues reflect an increase in professional fees and compensation, primarily related to information security costs and investments in innovation and product development. On a constant dollar basis, information technology expenses for the six months ended June 30, 2019 increased by $12.7 million, or 16.9%, compared to the prior year period, primarily driven by an increase in professional fees and compensation, primarily related to information security costs and investments in innovation and product development.

Bad Debt Expense

We maintain an allowance for doubtful accounts that is calculated based on our past loss experience, current and prior trends in our aged receivables, current economic conditions, and specific circumstances of individual receivable balances. We continue to monitor our customers' payment activity and make adjustments based on their financial condition and in light of historical and expected trends. Bad debt expense for the six months ended June 30, 2019 decreased by $2.7 million on a constant dollar basis compared to the prior year period, primarily driven by lower bad debt expense associated with our North American Records and Information Management Business and Other International Business segments.

Significant Acquisition Costs

Significant Acquisition Costs included in selling, general and administrative expenses were $2.5 million and $27.3 million in the six months ended June 30, 2019 and 2018, respectively, and primarily consisted of advisory and professional fees, as well as severance costs.

Depreciation and Amortization

Our depreciation and amortization charges result primarily from depreciation related to storage systems, which include racking structures, buildings, building and leasehold improvements and computer systems hardware and software. Amortization relates primarily to customer relationship intangible assets, contract fulfillment costs and data center lease-based intangible assets. Both depreciation and amortization are impacted by the timing of acquisitions.

Depreciation expense increased $3.4 million, or 1.5%, on a reported dollar basis for the six months ended June 30, 2019 compared to the six months ended June 30, 2018. See Note 2.f. 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 $6.6 million, or 7.2%, on a reported dollar basis for the six months ended June 30, 2019 compared to the six months ended June 30, 2018.

Gain on disposal/write-down of property, plant and equipment, net

We are currently exploring strategic options regarding how to maintain and support the infrastructure of select offerings within our Iron Mountain Iron Cloud (“Iron Cloud”) portfolio of products and services. During the second quarter of 2019, we performed a long-lived asset impairment analysis on the assets associated with these select offerings and concluded that the associated carrying value of the long-lived assets (which consisted entirely of property, plant and equipment) was not recoverable based upon the underlying cash flows associated with these select offerings. Therefore, we recorded an impairment charge of approximately $24.0 million during the second quarter of 2019, representing the net carrying value of the long-lived assets associated with these select offerings.

Consolidated gain on disposal/write-down of property, plant and equipment, net, for the three and six months ended June 30, 2019 was approximately $8.4 million and $7.8 million, respectively. The gain for the six months ended June 30, 2019 consisted primarily of gains associated with the sale of certain land and buildings in the United Kingdom of approximately $36.0 million. These gains were partially offset by losses primarily associated with (i) the impairment charge on the assets associated with the select offerings within our Iron Cloud portfolio, as described above, and (ii) the write-down of certain property, plant and equipment in our North American Records and Information Management Business of approximately $3.1 million.

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OTHER EXPENSES, NET

Interest Expense, Net

Consolidated interest expense, net increased $7.9 million, or 3.9%, to $207.8 million in the six months ended June 30, 2019 from $199.9 million in the six months ended June 30, 2018. This increase was a result of higher average debt outstanding during the six months ended June 30, 2019. See Note 4 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding our indebtedness.

Other (Income) Expense, Net (in thousands)

	Three Months Ended June 30,						Dollar Change			Six Months Ended June 30,						Dollar Change
	2019			2018						2019			2018
Foreign currency transaction (gains) losses, net	$	(19,331	)	$	(18,624	)	$	(707	)	$	(1,634	)	$	3,161		$	(4,795	)
Other, net	4,139			(432		)	4,571			1,652			(2,066		)	3,718
	$	(15,192	)	$	(19,056	)	$	3,864		$	18		$	1,095		$	(1,077	)

Foreign Currency Transaction (Gains) Losses

We recorded net foreign currency transaction gains of $(1.6) million in the six months ended June 30, 2019, based on period-end exchange rates. These gains resulted primarily from the impact of changes in the exchange rate of the British pound sterling against the United States dollar compared to December 31, 2018 on our intercompany balances with and between certain of our subsidiaries. These gains were partially offset by losses primarily from the impact of changes in the exchange rate of the Euro against the United States dollar compared to December 31, 2018 on our intercompany balances with and between certain of our subsidiaries.

We recorded net foreign currency transaction losses of $3.2 million in the six months ended June 30, 2018, based on period-end exchange rates. These losses resulted primarily from the impact of changes in the exchange rate of the Brazilian real against the United States dollar compared to December 31, 2017 on our intercompany balances with and between certain of our subsidiaries. These losses were partially offset by gains resulting primarily from the impact of changes in the exchange rate of each of the British pound sterling and Canadian dollar against the United States dollar compared to December 31, 2017 on our intercompany balances with and between certain of our subsidiaries and the Euro Notes (as defined below).

Other, net

Other, net for the six months ended June 30, 2019 includes the gain on sale from the Consumer Storage Transaction (as defined and discussed more fully in Note 9 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report) of approximately $4.2 million. In addition, Other, net for the three and six months ended June 30, 2019 includes the change in estimated fair value of the noncontrolling interests associated with our business in India, which are accounted for as mandatorily redeemable noncontrolling interests.

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 estimate of the effective tax rate for the years ending December 31, 2019 and 2018 reflect the impact of the U.S. tax reform legislation, commonly referred to as the Tax Cuts and Jobs Act (the “Tax Reform Legislation”). See Note 7 to Notes to Consolidated Financial Statements included in our Annual Report for additional information regarding the impact the Tax Reform Legislation had on us. Discrete items and changes in our estimate of the annual effective tax rate are recorded in the period they occur. Our effective tax rate is subject to variability in the future due to, among other items: (1) changes in the mix of income between our qualified REIT subsidiaries and our domestic taxable REIT subsidiaries, as well as among the jurisdictions in which we operate; (2) tax law changes; (3) volatility in foreign exchange gains and losses; (4) the timing of the establishment and reversal of tax reserves; and (5) our ability to utilize net operating losses that we generate.

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Our effective tax rates for the three and six months ended June 30, 2019 and 2018 are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019(1)		2018(1)		2019(1)		2018(2)
Effective Tax Rate	10.3	%	22.0	%	14.7	%	16.5	%

_______________________________________________________________________________

(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, 2019 and for the three months ended June 30, 2018 were the benefit derived from the dividends paid deduction and the impact of differences in the tax rates at which our foreign earnings are subject, including foreign exchange gains and losses in different jurisdictions with different tax rates.  

(2) 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, 2018 were the benefit derived from the dividends paid deduction, a discrete tax benefit of approximately $14.0 million associated with the resolution of a tax matter and the impact of differences in the tax rates at which our foreign earnings are subject, including foreign exchange gains and losses in different jurisdictions with different tax rates.

INCOME (LOSS) FROM CONTINUING OPERATIONS AND ADJUSTED EBITDA (in thousands)

The following table reflects the effect of the foregoing factors on our consolidated income (loss) from continuing operations and Adjusted EBITDA:

	Three Months Ended June 30,						Dollar Change			Percentage Change
	2019			2018
Income (Loss) from Continuing Operations	$	92,347		$	92,263		$	84		0.1	%
Income (Loss) from Continuing Operations as a percentage of Consolidated Revenue	8.7		%	8.7		%
Adjusted EBITDA	$	350,942		$	367,555		$	(16,613	)	(4.5	)%
Adjusted EBITDA Margin	32.9		%	34.6		%

	Six Months Ended June 30,						Dollar Change			Percentage Change
	2019			2018
Income (Loss) from Continuing Operations	122,823			$	131,652		$	(8,829	)	(6.7	)%
Income (Loss) from Continuing Operations as a percentage of Consolidated Revenue	5.8		%	6.3		%
Adjusted EBITDA	$	675,448		$	703,130		$	(27,682	)	(3.9	)%
Adjusted EBITDA Margin	31.8		%	33.4		%

Consolidated Adjusted EBITDA for the six months ended June 30, 2019 decreased by $27.7 million, or approximately 3.9%, and consolidated Adjusted EBITDA Margin decreased by 160 basis points compared to the same prior year period, primarily as a result of increased labor costs in our secure shredding business, higher technology costs associated with information security investments and higher overhead expenses associated with the growth of our data center business.

(LOSS) INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX

Loss from discontinued operations, net of tax was $0.8 million for the six months ended June 30, 2018, primarily related to the costs associated with the Recall Divestments (as discussed in Note 13 to Notes to Consolidated Financial Statements in our Annual Report).

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NONCONTROLLING INTERESTS

For the six months ended June 30, 2019 and 2018, net income attributable to noncontrolling interests resulted in a decrease in net income attributable to IMI of $0.9 million and $0.6 million, respectively. These amounts represent our noncontrolling partners' share of earnings/losses in our majority-owned international subsidiaries that are consolidated in our operating results.

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Segment Analysis (in thousands)

See Note 9 to Notes to Consolidated Financial Statements included in our Annual Report for a description of our reportable operating segments.

North American Records and Information Management Business

	Three Months Ended June 30,									Percentage Change
							Dollar Change			Actual		Constant Currency		Organic Growth
	2019			2018
Storage Rental	$	313,355		$	305,895		$	7,460		2.4	%	2.8	%	1.8	%
Service	225,918			233,185			(7,267		)	(3.1	)%	(2.7	)%	(2.1	)%
Segment Revenue	$	539,273		$	539,080		$	193		—	%	0.4	%	0.1	%
Segment Adjusted EBITDA(1)	$	245,585		$	244,861		$	724
Segment Adjusted EBITDA Margin(2)	45.5		%	45.4		%

	Six Months Ended June 30,									Percentage Change
							Dollar Change			Actual		Constant Currency		Organic Growth
	2019			2018
Storage Rental	$	620,341		$	610,714		$	9,627		1.6	%	2.0	%	1.6	%
Service	446,312			455,209			(8,897		)	(2.0	)%	(1.5	)%	—	%
Segment Revenue	$	1,066,653		$	1,065,923		$	730		0.1	%	0.5	%	0.9	%
Segment Adjusted EBITDA(1)	$	469,268		$	470,599		$	(1,331	)
Segment Adjusted EBITDA Margin(2)	44.0		%	44.1		%

_______________________________________________________________________________

(1) See "Non-GAAP Measures—Adjusted EBITDA" in this Quarterly Report for the definitions of Adjusted EBITDA and Adjusted EBITDA Margin, a reconciliation of Adjusted EBITDA to Income (Loss) from Continuing Operations and a discussion of why we believe these non-GAAP measures provide relevant and useful information to our current and potential investors.

(2) Segment Adjusted EBITDA Margin is calculated by dividing Segment Adjusted EBITDA by total segment revenues.

For the six months ended June 30, 2019, reported revenue in our North American Records and Information Management Business segment increased 0.1%, compared to the six months ended June 30, 2018, due to organic revenue growth, offset by the unfavorable net impact of acquisitions/dispositions (due to the IMFS Divestment) and foreign currency exchange rates. Organic revenue growth of 0.9% was primarily the result of organic storage rental revenue growth of 1.6% driven by revenue management, partially offset by volume decreases. In addition, flat organic service revenue growth was driven by growth in secure shredding revenue and increased project activity, fully offset by recent declines in recycled paper prices, lower destructions and reduced retrieval/re-file and related transportation activity. In the three months ended June 30, 2019, organic service revenue growth was negative 2.1% primarily due to recent declines in recycled paper prices and lower destruction activity. Adjusted EBITDA margin decreased 10 basis points during the six months ended June 30, 2019 compared to the six months ended June 30, 2018, primarily driven by higher labor and transportation costs in our secure shredding business and increased facility rent expense, partially offset by lower commissions expense.

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North American Data Management Business

	Three Months Ended June 30,									Percentage Change
							Dollar Change			Actual		Constant Currency		Organic Growth
	2019			2018
Storage Rental	$	66,750		$	68,808		$	(2,058	)	(3.0	)%	(2.7	)%	(2.1	)%
Service	29,665			31,223			(1,558		)	(5.0	)%	(4.7	)%	(6.5	)%
Segment Revenue	$	96,415		$	100,031		$	(3,616	)	(3.6	)%	(3.4	)%	(3.5	)%
Segment Adjusted EBITDA(1)	$	53,068		$	55,280		$	(2,212	)
Segment Adjusted EBITDA Margin(2)	55.0		%	55.3		%

	Six Months Ended June 30,									Percentage Change
							Dollar Change			Actual		Constant Currency		Organic Growth
	2019			2018
Storage Rental	$	133,322		$	138,054		$	(4,732	)	(3.4	)%	(3.1	)%	(2.5	)%
Service	59,840			61,941			(2,101		)	(3.4	)%	(3.1	)%	(4.9	)%
Segment Revenue	$	193,162		$	199,995		$	(6,833	)	(3.4	)%	(3.1	)%	(3.2	)%
Segment Adjusted EBITDA(1)	$	103,620		$	109,132		$	(5,512	)
Segment Adjusted EBITDA Margin(2)	53.6		%	54.6		%

_______________________________________________________________________________

(1) See "Non-GAAP Measures—Adjusted EBITDA" in this Quarterly Report for the definitions of Adjusted EBITDA and Adjusted EBITDA Margin, a reconciliation of Adjusted EBITDA to Income (Loss) from Continuing Operations and a discussion of why we believe these non-GAAP measures provide relevant and useful information to our current and potential investors.

(2) Segment Adjusted EBITDA Margin is calculated by dividing Segment Adjusted EBITDA by total segment revenues.

For the six months ended June 30, 2019, reported revenue in our North American Data Management Business segment decreased 3.4%, compared to the six months ended June 30, 2018, primarily due to negative organic revenue growth. The negative organic revenue growth of 3.2% was primarily attributable to a decline in organic service revenue growth of 4.9% due to continued declines in service revenue activity levels as the business becomes more archival in nature and tape volumes decrease, as well as a decline in organic storage rental revenue of 2.5%, primarily attributable to volume decreases, partially offset by the impact of revenue management. Adjusted EBITDA margin decreased 100 basis points during the six months ended June 30, 2019 compared to the six months ended June 30, 2018, primarily associated with investments in new products and services, as well as lower revenue not being offset by lower fixed costs.

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Western European Business

	Three Months Ended June 30,									Percentage Change
							Dollar Change			Actual		Constant Currency		Organic Growth
	2019			2018
Storage Rental	$	78,554		$	82,439		$	(3,885	)	(4.7	)%	0.8	%	2.4	%
Service	48,773			51,001			(2,228		)	(4.4	)%	1.0	%	1.2	%
Segment Revenue	$	127,327		$	133,440		$	(6,113	)	(4.6	)%	0.9	%	1.9	%
Segment Adjusted EBITDA(1)	$	44,163		$	46,594		$	(2,431	)
Segment Adjusted EBITDA Margin(2)	34.7		%	34.9		%

	Six Months Ended June 30,									Percentage Change
							Dollar Change			Actual		Constant Currency		Organic Growth
	2019			2018
Storage Rental	$	159,249		$	166,391		$	(7,142	)	(4.3	)%	2.0	%	2.8	%
Service	96,831			101,124			(4,293		)	(4.2	)%	2.0	%	2.1	%
Segment Revenue	$	256,080		$	267,515		$	(11,435	)	(4.3	)%	2.0	%	2.5	%
Segment Adjusted EBITDA(1)	$	83,372		$	90,560		$	(7,188	)
Segment Adjusted EBITDA Margin(2)	32.6		%	33.9		%

_______________________________________________________________________________

(1) See "Non-GAAP Measures—Adjusted EBITDA" in this Quarterly Report for the definitions of Adjusted EBITDA and Adjusted EBITDA Margin, a reconciliation of Adjusted EBITDA to Income (Loss) from Continuing Operations and a discussion of why we believe these non-GAAP measures provide relevant and useful information to our current and potential investors.

(2) Segment Adjusted EBITDA Margin is calculated by dividing Segment Adjusted EBITDA by total segment revenues.

For the six months ended June 30, 2019, reported revenue in our Western European Business segment decreased 4.3%, compared to the six months ended June 30, 2018, due to unfavorable fluctuations in foreign currency exchange rates, partially offset by organic revenue growth. Organic revenue growth was 2.5%, primarily attributable to organic storage rental revenue growth of 2.8%, primarily associated with volume increases and, to a lesser extent, revenue management, as well as organic service revenue growth of 2.1%, reflecting higher destruction activity. For the six months ended June 30, 2019, foreign currency exchange rate fluctuations decreased our reported revenues for the Western European Business segment by 6.3% compared to the prior year period due to the weakening of the British pound sterling and Euro against the United States dollar. Adjusted EBITDA margin decreased 130 basis points during the six months ended June 30, 2019 compared to the six months ended June 30, 2018, primarily driven by higher facilities costs, compensation and higher professional fees. The higher facilities costs reflect increased rent and utility costs, partially offset by lower property taxes.

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Other International Business

	Three Months Ended June 30,									Percentage Change
							Dollar Change			Actual		Constant Currency		Organic Growth
	2019			2018
Storage Rental	$	128,898		$	129,611		$	(713	)	(0.6	)%	7.0	%	3.7	%
Service	70,925			77,916			(6,991		)	(9.0	)%	(0.4	)%	(2.0	)%
Segment Revenue	$	199,823		$	207,527		$	(7,704	)	(3.7	)%	4.3	%	1.6	%
Segment Adjusted EBITDA(1)	$	58,749		$	60,452		$	(1,703	)
Segment Adjusted EBITDA Margin(2)	29.4		%	29.1		%

	Six Months Ended June 30,									Percentage Change
							Dollar Change			Actual		Constant Currency		Organic Growth
	2019			2018
Storage Rental	$	258,371		$	261,358		$	(2,987	)	(1.1	)%	7.8	%	4.2	%
Service	142,408			156,936			(14,528		)	(9.3	)%	0.4	%	(1.3	)%
Segment Revenue	$	400,779		$	418,294		$	(17,515	)	(4.2	)%	5.1	%	2.1	%
Segment Adjusted EBITDA(1)	$	116,873		$	121,199		$	(4,326	)
Segment Adjusted EBITDA Margin(2)	29.2		%	29.0		%

_____________________________________________________________________________

(1) See "Non-GAAP Measures—Adjusted EBITDA" in this Quarterly Report for the definitions of Adjusted EBITDA and Adjusted EBITDA Margin, a reconciliation of Adjusted EBITDA to Income (Loss) from Continuing Operations and a discussion of why we believe these non-GAAP measures provide relevant and useful information to our current and potential investors.

(2) Segment Adjusted EBITDA Margin is calculated by dividing Segment Adjusted EBITDA by total segment revenues.

In the six months ended June 30, 2019, reported revenue in our Other International Business segment decreased 4.2% compared to the six months ended June 30, 2018, due to unfavorable fluctuations in foreign currency exchange rates, partially offset by organic revenue growth and the favorable impact of acquisitions/divestitures. Organic revenue growth was 2.1%, supported by 4.2% organic storage rental revenue growth, primarily due to volume increases and, to a lesser extent, revenue management, partially offset by negative 1.3% organic service revenue growth, primarily due to a decrease in project activity. The net impact of acquisitions/divestitures contributed 3.0% to reported revenue growth for the six months ended June 30, 2019, compared to the prior year period. For the six months ended June 30, 2019, foreign currency exchange rate fluctuations decreased our reported revenues for the Other International Business segment by 9.3% compared to the prior year period primarily due to the weakening of the Australian dollar and Brazilian real against the United States dollar. Adjusted EBITDA margin increased 20 basis points for the six months ended June 30, 2019 compared to the six months ended June 30, 2018, primarily due to compensation growing at a lower rate than revenue and a decrease in transportation costs, partially offset by higher facilities costs, mainly rent expense and building maintenance costs.

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Global Data Center Business

	Three Months Ended June 30,									Percentage Change
							Dollar Change			Actual		Constant Currency		Organic Growth
	2019			2018
Storage Rental	$	60,582		$	51,945		$	8,637		16.6	%	17.2	%	8.4	%
Service	1,709			2,950			(1,241		)	(42.1	)%	(42.1	)%	(45.4	)%
Segment Revenue	$	62,291		$	54,895		$	7,396		13.5	%	14.0	%	5.5	%
Segment Adjusted EBITDA(1)	$	27,641		$	24,901		$	2,740
Segment Adjusted EBITDA Margin(2)	44.4		%	45.4		%

	Six Months Ended June 30,									Percentage Change
							Dollar Change			Actual		Constant Currency		Organic Growth
	2019			2018
Storage Rental	$	120,300		$	97,440		$	22,860		23.5	%	23.9	%	5.7	%
Service	3,527			4,058			(531		)	(13.1	)%	(13.1	)%	(23.7	)%
Segment Revenue	$	123,827		$	101,498		$	22,329		22.0	%	22.4	%	4.5	%
Segment Adjusted EBITDA(1)	$	53,652		$	45,691		$	7,961
Segment Adjusted EBITDA Margin(2)	43.3		%	45.0		%

_____________________________________________________________________________

(1) See "Non-GAAP Measures—Adjusted EBITDA" in this Quarterly Report for the definitions of Adjusted EBITDA and Adjusted EBITDA Margin, a reconciliation of Adjusted EBITDA to Income (Loss) from Continuing Operations and a discussion of why we believe these non-GAAP measures provide relevant and useful information to our current and potential investors.

(2) Segment Adjusted EBITDA Margin is calculated by dividing Segment Adjusted EBITDA by total segment revenues.

For the six months ended June 30, 2019, reported revenue in our Global Data Center Business segment increased 22.0% compared to the six months ended June 30, 2018, primarily due to the impact of acquisitions (see Note 6 of Notes to Consolidated Financial Statements included in our Annual Report for additional acquisition details). The impact of acquisitions contributed 17.9% to the reported revenue growth rate in our Global Data Center Business segment for the six months ended June 30, 2019 compared to the prior year period. Organic storage rental revenue growth in our Global Data Center Business segment was 5.7% for the six months ended June 30, 2019 compared to the prior year period, primarily related to a $1.7 million lease modification fee that benefited organic storage rental revenue growth by 1.7%. For the three months ended June 30, 2019 the impact of the modification fee benefited organic storage rental revenue growth by 3.2%. Adjusted EBITDA increased $8.0 million for the six months ended June 30, 2019 compared to the prior year period, primarily due to the impact of acquisitions. Adjusted EBITDA margin decreased 170 basis points during the six months ended June 30, 2019 compared to the prior year period primarily due to the impact of recent acquisitions that operate at lower margins and increased overhead to support the growth of this business.

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Corporate and Other Business

	Three Months Ended June 30,									Percentage Change
							Dollar Change			Actual		Constant Currency		Organic Growth
	2019			2018
Storage Rental	$	21,149		$	16,741		$	4,408		26.3	%	27.6	%	3.0	%
Service	20,629			9,109			11,520			126.5	%	132.5	%	14.9	%
Segment Revenue	$	41,778		$	25,850		$	15,928		61.6	%	64.2	%	7.1	%
Segment Adjusted EBITDA(1)	$	(78,264	)	$	(64,533	)	$	(13,731	)
Segment Adjusted EBITDA(1) as a percentage of Consolidated Revenue	(7.3		)%	(6.1		)%

	Six Months Ended June 30,									Percentage Change
							Dollar Change			Actual		Constant Currency		Organic Growth
	2019			2018
Storage Rental	$	40,679		$	32,631		$	8,048		24.7	%	26.0	%	4.8	%
Service	39,590			17,425			22,165			127.2	%	135.7	%	13.4	%
Segment Revenue	$	80,269		$	50,056		$	30,213		60.4	%	63.5	%	7.7	%
Segment Adjusted EBITDA(1)	$	(151,337	)	$	(134,051	)	$	(17,286	)
Segment Adjusted EBITDA(1) as a percentage of Consolidated Revenue	(7.1		)%	(6.4		)%

_______________________________________________________________________________

(1) See "Non-GAAP Measures—Adjusted EBITDA" in this Quarterly Report for the definitions of Adjusted EBITDA and Adjusted EBITDA Margin, a reconciliation of Adjusted EBITDA to Income (Loss) from Continuing Operations and a discussion of why we believe these non-GAAP measures provide relevant and useful information to our current and potential investors.

During the six months ended June 30, 2019, Adjusted EBITDA in the Corporate and Other Business segment as a percentage of consolidated revenues decreased 70 basis points compared to the six months ended June 30, 2018. Adjusted EBITDA in the Corporate and Other Business segment decreased $17.3 million in the six months ended June 30, 2019 compared to the six months ended June 30, 2018, primarily driven by higher compensation and professional fees associated with investments in our global operations support team that is tasked with driving operational improvements and continued investment in innovation and product development, partially offset by profitability associated with recent acquisitions in our Adjacent Businesses operating segment.

74

Liquidity and Capital Resources

The following is a summary of our cash balances and cash flows (in thousands) as of and for the six months ended June 30,

	2019			2018
Cash flows from operating activities - continuing operations	$	429,731		$	393,806
Cash flows from investing activities - continuing operations	(474,734		)	(1,921,496		)
Cash flows from financing activities - continuing operations	39,102			798,753
Cash and cash equivalents at the end of period	161,996			188,192

Cash Flows from Operating Activities

For the six months ended June 30, 2019, net cash flows provided by operating activities increased by $35.9 million compared to the prior year period, primarily due to a decrease in cash used in working capital of $40.5 million, primarily related to the timing of collections of accounts receivable and certain prepaid and accrued expenses, offset by a decrease in net income (including non-cash charges) of $4.6 million.

Cash Flows from Investing Activities

Our significant investing activities during the six months ended June 30, 2019 are highlighted below:

• We paid cash for acquisitions (net of cash acquired) of $44.7 million, primarily funded by borrowings under our revolving credit facility (the "Revolving Credit Facility").

• We paid cash for capital expenditures of $367.1 million. Our business requires capital expenditures to maintain our ongoing operations, support our expected revenue growth and new products and services, and increase our profitability. All of these expenditures are included in the cash flows from investing activities. Additional details of our capital spending is included in the Capital Expenditures section below.

• We acquired customer relationships, and incurred both (i) customer inducements (which consist primarily of permanent withdrawal fees) and (ii) Contract Fulfillment Costs (as defined in Note 2.c. to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report) and third-party commissions during the six months ended June 30, 2019 of $33.4 million, $5.8 million and $51.3 million, respectively.

• We paid $19.2 million as part of our investment in Makespace (as discussed above).

• We received proceeds of $46.8 million, primarily from the sale of three facilities in the United Kingdom.

Cash Flows from Financing Activities

Our significant financing activities during the six months ended June 30, 2019 included:

• Net proceeds of $395.2 million primarily associated with the borrowings and repayments on our Revolving Credit Facility.

• Payment of dividends in the amount of $353.4 million on our common stock.

75

Capital Expenditures

The following table presents our capital spend for the six months ended June 30, 2019 and 2018, organized by the type of the spending as described in our Annual Report:

	Six Months Ended June 30,
Nature of Capital Spend (in thousands)	2019		2018
Growth Investment Capital Expenditures:
Real Estate(1)	$	40,459	$	73,493
Non-Real Estate(2)	18,993		22,868
Data Center(3)	235,170		56,815
Innovation(1)	10,680		4,587
Total Growth Investment Capital Expenditures	305,302		157,763
Recurring Capital Expenditures:
Real Estate(2)	27,563		23,615
Non-Real Estate(2)	12,260		10,435
Data Center(3)	3,607		5,743
Total Recurring Capital Expenditures	43,430		39,793
Total Capital Spend (on accrual basis)	348,732		197,556
Net increase (decrease) in prepaid capital expenditures	410		(1,733		)
Net decrease (increase) in accrued capital expenditures	17,989		21,778
Total Capital Spend (on cash basis)	$	367,131	$	217,601

_______________________________________________________________________________

For the year ending December 31, 2019, excluding capital expenditures associated with potential future acquisitions, opportunistic real estate investments and capital expenditures associated with the integrations of Recall and IODC, we expect the following:

(1) Growth investment capital expenditures on real estate and innovation to be approximately $175.0 million;

(2) Recurring capital expenditures on real estate and non-real estate, as well as non-real estate growth investment capital expenditures, to be approximately $145.0 million to $155.0 million; and

(3) Capital expenditures on our data center business to be 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 were declared during the first six months of 2019 and fiscal year 2018.

76

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 investment as of June 30, 2019 is related to cash and cash equivalents. See Note 2.h. to Notes to the Condensed Consolidated Financial Statements included in this Quarterly Report for information on our time deposits.

Long-term debt as of June 30, 2019 is as follows (in thousands):

	June 30, 2019
	Debt (inclusive of discount)			Unamortized Deferred Financing Costs			Carrying Amount
Revolving Credit Facility	$	1,181,376		$	(12,548	)	$	1,168,828
Term Loan A	234,375			—			234,375
Term Loan B	689,782			(8,118		)	681,664
Australian Dollar Term Loan	230,048			(2,691		)	227,357
UK Bilateral Revolving Credit Facility	177,762			(2,030		)	175,732
43/8% Senior Notes due 2021	500,000			(3,295		)	496,705
6% Senior Notes due 2023	600,000			(4,576		)	595,424
53/8% CAD Senior Notes due 2023	190,972			(2,335		)	188,637
53/4% Senior Subordinated Notes due 2024	1,000,000			(7,096		)	992,904
3% Euro Senior Notes due 2025	341,128			(3,781		)	337,347
37/8% GBP Senior Notes due 2025 (the "GBP Notes")	507,891			(6,074		)	501,817
53/8% Senior Notes due 2026	250,000			(2,971		)	247,029
47/8% Senior Notes due 2027 (the "47/8% Notes")	1,000,000			(11,731		)	988,269
51/4% Senior Notes due 2028 (the "51/4% Notes")	825,000			(10,333		)	814,667
Real Estate Mortgages, Financing Lease Liabilities and Other	559,622			(425		)	559,197
Accounts Receivable Securitization Program	254,962			(149		)	254,813
Mortgage Securitization Program	50,000			(1,055		)	48,945
Total Long-term Debt	8,592,918			(79,208		)	8,513,710
Less Current Portion	(123,527		)	—			(123,527		)
Long-term Debt, Net of Current Portion	$	8,469,391		$	(79,208	)	$	8,390,183

See Note 4 to Notes to Consolidated Financial Statements included in our Annual Report and Note 4 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding our long-term debt.

Debt Covenants

The Credit Agreement, our 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 indentures or other agreements governing our indebtedness. The Credit Agreement uses EBITDAR-based calculations as the primary measures of financial performance, including leverage and fixed charge coverage ratios.

77

Our leverage and fixed charge coverage ratios under the Credit Agreement as of June 30, 2019 and December 31, 2018, as well as our leverage ratio under our indentures as of June 30, 2019 and December 31, 2018 are as follows:

	June 30, 2019	December 31, 2018	Maximum/Minimum Allowable
Net total lease adjusted leverage ratio	5.8	5.6	Maximum allowable of 6.5
Net secured debt lease adjusted leverage ratio	2.8	2.6	Maximum allowable of 4.0
Bond leverage ratio (not lease adjusted)	6.1	5.8	Maximum allowable of 6.5-7.0(1)
Fixed charge coverage ratio	2.2	2.2	Minimum allowable of 1.5

______________________________________________________________

(1) The maximum allowable leverage ratio under our indentures for the 4⁷/₈% Notes, the GBP Notes and the 5¹/₄% Notes is 7.0, while the maximum allowable leverage ratio under the indentures pertaining to our remaining senior and senior subordinated notes is 6.5. In certain instances as provided in our indentures, we have the ability to incur additional indebtedness that would result in our bond leverage ratio exceeding the maximum allowable ratio under our indentures and still remain in compliance with the 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.

At The Market (ATM) Equity Program

As described in greater detail in Note 12 to Notes to Consolidated Financial Statements included in our Annual Report, we entered into a distribution agreement with a syndicate of 10 banks (the “Agents”) 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 (the “At The Market (ATM) Equity Program”). There were no shares of common stock sold under the At the Market (ATM) Equity Program during the six months ended June 30, 2019. During the six months ended June 30, 2018, under the At The Market (ATM) Equity Program, we sold an aggregate of 273,486 shares of common stock for gross proceeds of approximately $8.8 million, generating net proceeds of $8.7 million, after deducting commissions of $0.1 million. As of June 30, 2019, 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.

Forward-Starting 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 swaps expire in March 2022 (as described in Note 2.h. to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report). 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 swap agreements we will receive variable rate interest payments based upon one-month LIBOR, in exchange for the payment of fixed interest rate payments at the rates specified in the interest rate swap agreements. We have designated these interest rate swap agreements as cash flow hedges beginning in the third quarter of 2019.

Acquisitions

See Note 3 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for information regarding our 2019 acquisitions.

Included in Significant Acquisition Costs are certain costs associated with the Recall Transaction and the IODC Transaction. This amount consists of (i) Significant Acquisition Costs and (ii) capital expenditures to integrate Recall with our existing operations. We currently estimate total acquisition and integration expenditures associated with the Recall Transaction and acquisition expenditures associated with the IODC Transaction to be approximately $405.0 million, the substantial majority of which was incurred prior to the end of 2018.

78

The following table presents the cumulative amount of operating and capital expenditures incurred during the six months ended June 30, 2019 and 2018, as well as the cumulative amount incurred through June 30, 2019, associated with the Recall Transaction and the IODC Transaction (in thousands):

	Cumulative Total Through June 30, 2019		Six Months Ended June 30, 2019		Six Months Ended June 30, 2018
Significant Acquisition Costs	$	319,171	$	4,647	$	29,429
Recall Capital Expenditures	74,890		1,353		7,245
Total	$	394,061	$	6,000	$	36,674

Contractual Obligations

We expect to meet our cash flow requirements for the next twelve months by utilizing cash on hand, cash generated from operations, borrowings under the Credit Agreement and other financings (including the issuance of equity under the At The Market (ATM) Equity Program). We expect to meet our long-term cash flow requirements using the same resources described above. We are currently operating above our long-term targeted leverage ratio and expect to reduce our leverage ratio over time through business growth and effective capital allocation strategies.

Inflation

Certain of our expenses, such as wages and benefits, insurance, occupancy costs and equipment repair and replacement, are subject to normal inflationary pressures. Although to date we have been able to offset inflationary cost increases with increased operating efficiencies, the negotiation of favorable long-term real estate leases and an ability to increase prices in our customer contracts (many of which contain provisions for inflationary price escalators), we can give no assurance that we will be able to offset any future inflationary cost increases through similar efficiencies, leases or increased storage rental or service charges.

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, 2019 (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 during the quarter ended June 30, 2019 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

79

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, 2019, nor did we repurchase any shares of our common stock during the three months ended June 30, 2019.

Item 6. Exhibits

(a)    Exhibits

Certain exhibits indicated below are incorporated by reference to documents we have filed with the SEC.

Exhibit No.	Description
31.1	Rule 13a-14(a) Certification of Chief Executive Officer. (Filed herewith.)
31.2	Rule 13a-14(a) Certification of Chief Financial Officer. (Filed herewith.)
32.1	Section 1350 Certification of Chief Executive Officer. (Furnished herewith.)
32.2	Section 1350 Certification of Chief Financial Officer. (Furnished herewith.)
101.INS	XBRL 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.SCH	Inline XBRL Taxonomy Extension Schema Document.
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	Inline XBRL Taxonomy Label Linkbase Document.
101.PRE	Inline XBRL Taxomony Extension Presentation Linkbase Document.

80

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 1, 2019

81

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, William L. Meaney, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Iron Mountain Incorporated; 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; 

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and 

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 1, 2019

/s/ WILLIAM L. MEANEY

William L. Meaney

President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2 

CERTIFICATIONS

I, Stuart B. Brown, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Iron Mountain Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and 

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 1, 2019

/s/ STUART B. BROWN

Stuart B. Brown

Executive Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. Section 1350, as adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002 

In connection with the filing of the quarterly report on Form 10-Q for the quarter ended June 30, 2019 (the "Report") by Iron Mountain Incorporated (the "Company"), the undersigned, as the President and Chief Executive Officer of the Company, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1.    the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and

2.    the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 1, 2019

/s/ WILLIAM L. MEANEY

William L. Meaney

President and Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. Section 1350, as adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the filing of the quarterly report on Form 10-Q for the quarter ended June 30, 2019 (the "Report") by Iron Mountain Incorporated (the "Company"), the undersigned, as the Executive Vice President and Chief Financial Officer of the Company, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1.    the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and

2.    the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 1, 2019

/s/ STUART B. BROWN

Stuart B. Brown

Executive Vice President and Chief Financial Officer

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	Jun. 30, 2019	Jul. 26, 2019
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Document Type	10-Q
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Document Period End Date	Jun. 30, 2019
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Entity File Number	1-13045
Entity Registrant Name	IRON MOUNTAIN INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	23-2588479
Entity Address, Address Line One	One Federal Street
Entity Address, City or Town	Boston
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02110
City Area Code	617
Local Phone Number	535-4766
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Small Business Entity	false
Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common Stock, $.01 par value
Trading Symbol	IRM
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding		287,106,811
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CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current Assets:
Cash and cash equivalents	$ 161,996	$ 165,485
Accounts receivable (less allowances of $41,305 and $43,584 as of June 30, 2019 and December 31, 2018, respectively)	852,330	846,889
Prepaid expenses and other	200,777	195,740
Total Current Assets	1,215,103	1,208,114
Property, Plant and Equipment:
Property, plant and equipment	7,840,423	7,600,949
Less—Accumulated depreciation	(3,281,864)	(3,111,392)
Property, Plant and Equipment, Net	4,558,559	4,489,557
Other Assets, Net:
Goodwill	4,473,424	4,441,030
Customer relationships, customer inducements and data center lease-based intangibles	1,467,025	1,506,522
Operating lease right-of-use assets (see Note 2.d.)	1,793,807	0
Other	213,064	211,995
Total Other Assets, Net	7,947,320	6,159,547
Total Assets	13,720,982	11,857,218
Current Liabilities:
Current portion of long-term debt	123,527	126,406
Accounts payable	303,988	318,765
Accrued expenses and other current liabilities (includes current portion of operating lease liabilities, see Note 2.d.)	920,493	780,781
Deferred revenue	268,779	264,823
Total Current Liabilities	1,616,787	1,490,775
Long-term Debt, net of current portion	8,390,183	8,016,417
Long-term Operating Lease Liabilities, net of current portion (see Note 2.d.)	1,655,477	0
Other Long-term Liabilities	131,909	111,331
Deferred Rent (see Note 2.d.)	0	121,864
Deferred Income Taxes	194,532	183,836
Commitments and Contingencies (see Note 7)
Redeemable Noncontrolling Interests	73,113	70,532
Iron Mountain Incorporated Stockholders' Equity:
Preferred stock (par value $0.01; authorized 10,000,000 shares; none issued and outstanding)	0	0
Common stock (par value $0.01; authorized 400,000,000 shares; issued and outstanding 287,061,769 and 286,321,009 shares as of June 30, 2019 and December 31, 2018, respectively)	2,870	2,863
Additional paid-in capital	4,281,584	4,263,348
(Distributions in excess of earnings) Earnings in excess of distributions	(2,364,812)	(2,139,493)
Accumulated other comprehensive items, net	(261,821)	(265,664)
Total Iron Mountain Incorporated Stockholders' Equity	1,657,821	1,861,054
Noncontrolling Interests	1,160	1,409
Total Equity	1,658,981	1,862,463
Total Liabilities and Equity	$ 13,720,982	$ 11,857,218

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowances	$ 41,305	$ 43,584
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized shares	10,000,000	10,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares	400,000,000	400,000,000
Common stock, issued shares	287,061,769	286,321,009
Common stock, outstanding shares	287,061,769	286,321,009

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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues:
Revenues	$ 1,066,907	$ 1,060,823	$ 2,120,770	$ 2,103,281
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	465,102	451,464	926,646	900,185
Selling, general and administrative	252,764	252,225	523,323	529,395
Depreciation and amortization	164,331	156,220	326,814	316,798
(Gain) Loss on disposal/write-down of property, plant and equipment, net (see Notes 2.j. and 2.m.)	(8,405)	(546)	(7,803)	(1,676)
Total Operating Expenses	873,792	859,363	1,768,980	1,744,702
Operating Income (Loss)	193,115	201,460	351,790	358,579
Interest Expense, Net (includes Interest Income)	105,314	102,196	207,750	199,898
Other (Income) Expense, Net	(15,192)	(19,056)	18	1,095
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes	102,993	118,320	144,022	157,586
Provision (Benefit) for Income Taxes	10,646	26,057	21,199	25,934
Income (Loss) from Continuing Operations	92,347	92,263	122,823	131,652
Income (Loss) from Discontinued Operations, Net of Tax	128	(360)	104	(822)
Net Income (Loss)	92,475	91,903	122,927	130,830
Less: Net Income (Loss) Attributable to Noncontrolling Interests	34	142	925	610
Net Income (Loss) Attributable to Iron Mountain Incorporated	$ 92,441	$ 91,761	$ 122,002	$ 130,220
Earnings (Losses) per Share—Basic:
Income (Loss) from Continuing Operations (in dollars per share)	$ 0.32	$ 0.32	$ 0.43	$ 0.46
Total Income (Loss) from Discontinued Operations, Net of Tax (in dollars per share)	0	0	0	0
Net Income (Loss) Attributable to Iron Mountain Incorporated (in dollars per share)	0.32	0.32	0.43	0.46
Earnings (Losses) per Share—Diluted:
Income (Loss) from Continuing Operations (in dollars per share)	0.32	0.32	0.42	0.46
Total Income (Loss) from Discontinued Operations, Net of Tax (in dollars per share)	0	0	0	0
Net Income (Loss) Attributable to Iron Mountain Incorporated (in dollars per share)	$ 0.32	$ 0.32	$ 0.42	$ 0.45
Weighted Average Common Shares Outstanding-Basic (in shares)	286,925,000	285,984,000	286,727,000	285,622,000
Weighted Average Common Shares Outstanding-Diluted (in shares)	287,481,288	286,569,251	287,487,056	286,281,565
Storage rental
Revenues:
Revenues	$ 669,288	$ 655,439	$ 1,332,262	$ 1,306,588
Service
Revenues:
Revenues	$ 397,619	$ 405,384	$ 788,508	$ 796,693

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CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Statement [Abstract]
Interest income	$ 1,461	$ 2,280	$ 3,246	$ 3,666

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Comprehensive Income [Abstract]
Net Income (Loss)	$ 92,475	$ 91,903	$ 122,927	$ 130,830
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustment	(5,791)	(139,172)	12,400	(107,521)
Change in Fair Value of Interest Rate Swap Agreements	(4,931)	2,388	(7,605)	2,203
Total Other Comprehensive (Loss) Income	(10,722)	(136,784)	4,795	(105,318)
Comprehensive Income (Loss)	81,753	(44,881)	127,722	25,512
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	173	(3,274)	1,877	(1,247)
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$ 81,580	$ (41,607)	$ 125,845	$ 26,759

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CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	(Distributions in Excess of Earnings) Earnings in Excess of Distributions	Accumulated Other Comprehensive Items, Net	Noncontrolling Interests	Redeemable Noncontrolling Interests	Over-Allotment Option	Over-Allotment Option Common Stock	Over-Allotment Option Additional Paid-in Capital	At The Market (ATM) Equity Program	At The Market (ATM) Equity Program Common Stock	At The Market (ATM) Equity Program Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity
Cumulative-effect adjustment for adoption | Accounting Standards Update 2014-09	$ (30,233)			$ (30,233)
Balance (in shares) at Dec. 31, 2017		283,110,183
Balance at Dec. 31, 2017	2,285,134	$ 2,831	$ 4,164,562	(1,779,674)	$ (103,989)	$ 1,404
Increase (Decrease) in Stockholders' Equity
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation (in shares)		540,558
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation	13,805	$ 6	13,799
Issuance of shares								$ 76,192	$ 22	$ 76,170	$ 8,716	$ 2	$ 8,714
Issuance of shares (in shares)									2,175,000			273,486
Change in value of redeemable noncontrolling interests	(6,351)		(6,351)				$ 6,351
Parent cash dividends declared (see Note 8)	(338,251)			(338,251)
Foreign currency translation adjustment	(105,512)				(105,664)	152
Change in fair value of interest rate swap agreements	2,203				2,203
Net income (loss)	130,171
Net income (loss)	130,830			130,220		(49)
Balance at Jun. 30, 2018	2,035,874	$ 2,861	4,256,894	(2,017,938)	(207,450)	1,507
Balance (in shares) at Jun. 30, 2018		286,099,227
Redeemable Noncontrolling Interest at Dec. 31, 2017							91,418
Increase (Decrease) in Temporary Equity [Roll Forward]
Change in equity related to redeemable noncontrolling interests	(6,351)		(6,351)				6,351
Foreign currency translation adjustment							(2,009)
Net income (loss)							659
Noncontrolling interests dividends							(1,079)
Redeemable Noncontrolling Interest at Jun. 30, 2018							95,340
Increase (Decrease) in Stockholders' Equity
Cumulative-effect adjustment for adoption | Accounting Standards Update 2014-09	(772)			(772)
Balance (in shares) at Mar. 31, 2018		285,923,405
Balance at Mar. 31, 2018	2,241,342	$ 2,859	4,250,757	(1,939,720)	(74,082)	1,528
Increase (Decrease) in Stockholders' Equity
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation (in shares)		175,822
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation	12,373	$ 2	12,371
Change in value of redeemable noncontrolling interests	(6,234)		(6,234)				6,234
Parent cash dividends declared (see Note 8)	(169,207)			(169,207)
Foreign currency translation adjustment	(135,758)				(135,756)	(2)
Change in fair value of interest rate swap agreements	2,388				2,388
Net income (loss)	91,742
Net income (loss)	91,903			91,761		(19)
Balance at Jun. 30, 2018	2,035,874	$ 2,861	4,256,894	(2,017,938)	(207,450)	1,507
Balance (in shares) at Jun. 30, 2018		286,099,227
Redeemable Noncontrolling Interest at Mar. 31, 2018							92,877
Increase (Decrease) in Temporary Equity [Roll Forward]
Change in equity related to redeemable noncontrolling interests	(6,234)		(6,234)				6,234
Foreign currency translation adjustment							(3,414)
Net income (loss)							161
Noncontrolling interests dividends							(518)
Redeemable Noncontrolling Interest at Jun. 30, 2018							95,340
Increase (Decrease) in Stockholders' Equity
Cumulative-effect adjustment for adoption | Accounting Standards Update 2016-02	$ 5,781			5,781
Balance (in shares) at Dec. 31, 2018	286,321,009	286,321,009
Balance at Dec. 31, 2018	$ 1,862,463	$ 2,863	4,263,348	(2,139,493)	(265,664)	1,409
Increase (Decrease) in Stockholders' Equity
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation (in shares)		740,760
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation	19,697	$ 7	19,690
Change in value of redeemable noncontrolling interests	(1,454)		(1,454)				1,454
Parent cash dividends declared (see Note 8)	(353,102)			(353,102)
Foreign currency translation adjustment	11,448				11,448
Change in fair value of interest rate swap agreements	(7,605)				(7,605)
Net income (loss)	121,753
Net income (loss)	122,927			122,002		(249)
Balance at Jun. 30, 2019	$ 1,658,981	$ 2,870	4,281,584	(2,364,812)	(261,821)	1,160
Balance (in shares) at Jun. 30, 2019	287,061,769	287,061,769
Redeemable Noncontrolling Interest at Dec. 31, 2018	$ 70,532						70,532
Increase (Decrease) in Temporary Equity [Roll Forward]
Change in equity related to redeemable noncontrolling interests	(1,454)		(1,454)				1,454
Foreign currency translation adjustment							952
Net income (loss)							1,174
Noncontrolling interests dividends							(999)
Redeemable Noncontrolling Interest at Jun. 30, 2019	73,113						73,113
Balance (in shares) at Mar. 31, 2019		286,829,854
Balance at Mar. 31, 2019	1,737,608	$ 2,868	4,264,978	(2,280,611)	(250,960)	1,333
Increase (Decrease) in Stockholders' Equity
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation (in shares)		231,915
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation	16,774	$ 2	16,772
Change in value of redeemable noncontrolling interests	(166)		(166)				166
Parent cash dividends declared (see Note 8)	(176,642)			(176,642)
Foreign currency translation adjustment	(5,930)				(5,930)
Change in fair value of interest rate swap agreements	(4,931)				(4,931)
Net income (loss)	92,268
Net income (loss)	92,475			92,441		(173)
Balance at Jun. 30, 2019	$ 1,658,981	$ 2,870	4,281,584	$ (2,364,812)	$ (261,821)	$ 1,160
Balance (in shares) at Jun. 30, 2019	287,061,769	287,061,769
Redeemable Noncontrolling Interest at Mar. 31, 2019							73,102
Increase (Decrease) in Temporary Equity [Roll Forward]
Change in equity related to redeemable noncontrolling interests	$ (166)		$ (166)				166
Foreign currency translation adjustment							139
Net income (loss)							207
Noncontrolling interests dividends							(501)
Redeemable Noncontrolling Interest at Jun. 30, 2019	$ 73,113						$ 73,113

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash Flows from Operating Activities:
Net income (loss)	$ 122,927	$ 130,830
Loss (income) from discontinued operations	(104)	822
Adjustments to reconcile net income (loss) to cash flows from operating activities:
Depreciation	228,333	224,933
Amortization (includes amortization of deferred financing costs and discounts of $8,208 and $7,580 for the six months ended June 30, 2019 and 2018, respectively)	106,689	99,445
Revenue reduction associated with amortization of customer inducements and above- and below-market leases	7,178	7,925
Stock-based compensation expense	21,020	16,073
Provision (benefit) for deferred income taxes	2,753	(741)
(Gain) loss on disposal/write-down of property, plant and equipment, net (see Note 2.j.)	(7,803)	(1,676)
Foreign currency transactions and other, net	(7,505)	497
(Increase) decrease in assets	(53,038)	(54,729)
Increase (decrease) in liabilities	9,281	(29,573)
Cash Flows from Operating Activities - Continuing Operations	429,731	393,806
Cash Flows from Operating Activities - Discontinued Operations	0	(477)
Cash Flows from Operating Activities	429,731	393,329
Cash Flows from Investing Activities:
Capital expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	(367,131)	(217,601)
Cash paid for acquisitions, net of cash acquired	(44,651)	(1,666,869)
Acquisition of customer relationships	(33,375)	(23,383)
Customer inducements	(5,841)	(4,041)
Contract fulfillment costs and third-party commissions	(51,346)	(9,809)
Investments in joint ventures (see Note 9)	(19,222)	0
Proceeds from sales of property and equipment and other, net	46,832	207
Cash Flows from Investing Activities—Continuing Operations	(474,734)	(1,921,496)
Cash Flows from Investing Activities—Discontinued Operations	5,061	0
Cash Flows from Investing Activities	(469,673)	(1,921,496)
Cash Flows from Financing Activities:
Repayment of revolving credit facility, term loan facilities and other debt	(2,602,922)	(7,876,796)
Proceeds from revolving credit facility, term loan facilities and other debt	2,998,107	8,944,416
Debt repayment and equity distribution to noncontrolling interests	(999)	(1,079)
Parent cash dividends	(353,357)	(337,052)
Net proceeds associated with the Over-Allotment Option	0	76,192
Net proceeds associated with the At the Market (ATM) Program	0	8,716
Net (payments) proceeds associated with employee stock-based awards	(1,727)	(2,259)
Payment of debt financing and stock issuance costs	0	(13,385)
Cash Flows from Financing Activities - Continuing Operations	39,102	798,753
Cash Flows from Financing Activities - Discontinued Operations	0	0
Cash Flows from Financing Activities	39,102	798,753
Effect of Exchange Rates on Cash and Cash Equivalents	(2,649)	(8,093)
(Decrease) Increase in Cash and Cash Equivalents	(3,489)	(737,507)
Cash and Cash Equivalents, including Restricted Cash, Beginning of Period	165,485	925,699
Cash and Cash Equivalents, including Restricted Cash, End of Period	161,996	188,192
Supplemental Information:
Cash Paid for Interest	201,602	185,804
Cash Paid for Income Taxes, Net	38,302	33,858
Non-Cash Investing and Financing Activities:
Financing Leases (see Note 2.d.)	13,662	34,260
Accrued Capital Expenditures	66,154	49,320
Accrued Purchase Price and Other Holdbacks	2,394	26,089
Dividends Payable	$ 181,731	$ 173,301

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Statement of Cash Flows [Abstract]
Deferred financing costs and discount included in Amortization	$ 8,208	$ 7,580

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General

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

General

General

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. Iron Mountain Incorporated, a Delaware corporation ("IMI"), and its subsidiaries ("we" or "us") provide storage of physical records and data backup media, information management solutions and enterprise-class colocation and wholesale data center space that help organizations in various locations throughout North America, Europe, Latin America, Asia and Africa. We offer comprehensive records and information management services and data management services, along with the expertise and experience to address complex storage and information management challenges such as rising storage rental costs, legal and regulatory compliance and disaster recovery requirements. We provide secure and reliable data center facilities to protect digital information and ensure the continued operation of our customers’ information technology infrastructure, with flexible deployment options, including both colocation and wholesale space.

The unaudited condensed consolidated financial statements 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 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, 2018 included in our Annual Report on Form 10-K filed with the SEC on February 14, 2019 (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.

On January 10, 2018, we completed the acquisition of IO Data Centers, LLC ("IODC") (the "IODC Transaction"). See Note 3.

On January 1, 2019, we adopted Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842), as amended ("ASU 2016-02"). See Note 2.d.

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting PoliciesThis Note 2 to Notes to Condensed Consolidated Financial Statements provides information and disclosure regarding certain of our significant accounting policies and should be read in conjunction with Note 2 to Notes to Consolidated Financial Statements included in our Annual Report, which may provide additional information with regard to the accounting policies set forth herein and other of our 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.

At June 30, 2019 and December 31, 2018, we had approximately $9,059 and $15,141, respectively, of restricted cash held by certain financial institutions related to bank guarantees.

b.    Goodwill and Other Intangible Assets and Liabilities

Goodwill

Since December 31, 2018, there have been no changes to our accounting polices related to the accounting for goodwill. As of June 30, 2019 and December 31, 2018, no factors were identified that would alter our October 1, 2018 goodwill impairment analysis.

Our reporting units as of December 31, 2018 are described in detail in Note 2.h. to Notes to Consolidated Financial Statements included in our Annual Report. On March 19, 2019, we divested the business included in our former Consumer Storage reporting unit, which had no goodwill associated with it at December 31, 2018 or at the date of the divestment. See Note 9 for additional information.

The goodwill associated with acquisitions completed during the first six months of 2019 (which are described in Note 3) has been incorporated into our reporting units as they existed as of December 31, 2018.

The changes in the carrying value of goodwill attributable to each reportable operating segment for the six months ended June 30, 2019 are as follows:

	North American Records and Information Management Business		North American Data Management Business		Western European Business			Other International Business		Global Data Center Business		Corporate and Other Business			Total Consolidated
Goodwill balance, net of accumulated amortization as of December 31, 2018	$	2,251,795	$	493,491	$	381,806		$	818,223	$	425,956	$	69,759		$	4,441,030
Deductible goodwill acquired during the year	5,501		—		—			2,758		—		—			8,259
Non-deductible goodwill acquired during the year	—		—		5,011			4,387		—		1,904			11,302
Fair value and other adjustments(1)	55		—		959			2,842		258		(422		)	3,692
Currency effects	7,704		2,093		(2,851		)	1,907		193		95			9,141
Goodwill balance, net accumulated amortization as of June 30, 2019	$	2,265,055	$	495,584	$	384,925		$	830,117	$	426,407	$	71,336		$	4,473,424
Accumulated Goodwill Impairment Balance as of December 31, 2018	$	85,909	$	—	$	46,500		$	—	$	—	$	3,011		$	135,420
Accumulated Goodwill Impairment Balance as of June 30, 2019	$	85,909	$	—	$	46,500		$	—	$	—	$	3,011		$	135,420

_______________________________________________________________________________

(1) Total fair value and other adjustments primarily include $3,755 in net adjustments related to property, plant and equipment, customer relationships and data center lease-based intangible assets and deferred income taxes and other liabilities offset by $63 of cash received related to certain acquisitions completed in 2018.

Finite-lived Intangible Assets and Liabilities

Finite-lived intangible assets and liabilities are primarily comprised of customer relationship intangible assets, customer inducements and data center intangible assets and liabilities (which include data center in-place lease intangible assets, data center tenant relationship intangible assets, data center above-market in-place lease intangible assets and data center below-market in-place lease intangible assets). Since December 31, 2018, there have been no changes to our accounting policies related to the accounting for any of our finite-lived intangible assets and liabilities as disclosed in Note 2.i. to Notes to Consolidated Financial Statements included in our Annual Report.

The gross carrying amount and accumulated amortization of our finite-lived intangible assets as of June 30, 2019 and December 31, 2018 are as follows:

	June 30, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Assets:
Customer relationship intangible assets	$	1,766,769	$	(511,672	)	$	1,255,097	$	1,718,919	$	(455,705	)	$	1,263,214
Customer inducements	52,542		(29,091		)	23,451		56,478		(34,181		)	22,297
Data center lease-based intangible assets(1)	266,263		(77,786		)	188,477		271,818		(50,807		)	221,011
Third-party commissions asset(2)	31,391		(1,874		)	29,517		30,071		(1,089		)	28,982
	$	2,116,965	$	(620,423	)	$	1,496,542	$	2,077,286	$	(541,782	)	$	1,535,504
Liabilities:
Data center below-market leases	$	12,765	$	(2,954	)	$	9,811	$	12,318	$	(1,642	)	$	10,676

_______________________________________________________________________________

(1) Includes data center in-place lease intangible assets, data center tenant relationship intangible assets and data center above-market in-place lease intangible assets.

(2) Third-party commissions asset is included in Other, a component of Other assets, net in the accompanying Condensed Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018. The third-party commissions asset is primarily comprised of additional payments associated with the execution of future customer contracts through the one-year anniversary of the acquisition of IODC, as described in Note 3.

Other finite-lived intangible assets, including trade names, noncompetition agreements and trademarks, are capitalized and amortized and are included in depreciation and amortization in the accompanying Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2019 and 2018. The other finite-lived intangible assets as of June 30, 2019 and December 31, 2018 are as follows:

	June 30, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Other finite-lived intangible assets (included in Other, a component of other assets, net)	$	19,960	$	(16,482	)	$	3,478	$	20,310	$	(14,798	)	$	5,512

Amortization expense associated with finite-lived intangible assets, revenue reduction associated with the amortization of customer inducements and net revenue reduction associated with the amortization of data center above-market leases and data center below-market leases for the three and six months ended June 30, 2019 and 2018 are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Amortization expense included in depreciation and amortization associated with:
Customer relationship and customer inducement intangible assets	$	28,283	$	28,813	$	56,164	$	57,619
Data center in-place leases and tenant relationships	11,372		7,563		23,981		18,401
Third-party commissions asset and other finite-lived intangible assets	2,184		1,659		2,941		2,844
Revenue reduction associated with amortization of:
Customer inducements	$	2,598	$	2,968	$	5,338	$	5,553
Data center above-market leases and data center below-market leases	935		1,293		1,840		2,372

c.    Revenues

Since December 31, 2018, there have been no changes to our accounting policies related to the accounting for revenues as disclosed in Note 2.l. to Notes to Consolidated Financial Statements included in our Annual Report.

The costs of the initial intake of customer records into physical storage ("Intake Costs") and capitalized commissions asset (collectively, "Contract Fulfillment Costs") as of June 30, 2019 and December 31, 2018 are as follows:

		June 30, 2019							December 31, 2018
Description	Location in Balance Sheet	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Intake Costs asset	Other (within Other Assets, Net)	$	34,915	$	(19,398	)	$	15,517	$	39,748	$	(24,504	)	$	15,244
Capitalized commissions asset	Other (within Other Assets, Net)	48,564		(17,895		)	30,669		58,424		(34,637		)	23,787

Amortization expense associated with the Intake Costs asset and capitalized commissions asset for the three and six months ended June 30, 2019 and 2018 are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Intake Costs asset	$	2,835	$	2,891	$	5,514	$	5,621
Capitalized commissions asset	5,935		3,793		9,881		7,380

Deferred revenue liabilities are reflected as follows in our Condensed Consolidated Balance Sheets:

Description	Location in Balance Sheet	June 30, 2019		December 31, 2018
Deferred revenue - Current	Deferred revenue	$	268,779	$	264,823
Deferred revenue - Long-term	Other Long-term Liabilities	25,436		26,401

Data Center Lessor Considerations

Our data center business features storage rental provided to customers at contractually specified rates over a fixed contractual period. Prior to January 1, 2019, our data center revenue contracts were accounted for in accordance with Accounting Standards Codification (“ASC”) No. 840, Leases ("ASC 840"). On January 1, 2019, we adopted ASU 2016-02, as described in more detail in Note 2.d. Beginning on January 1, 2019, our data center revenue contracts will be accounted for in accordance with ASU 2016-02. ASU 2016-02 provides a practical expedient which allows lessors to account for nonlease components (such as power and connectivity, in the case of our data center business) with the related lease component if both the timing and pattern of transfer are the same for nonlease components and the lease component, and the lease component would be classified as an operating lease. The single combined component is accounted for under ASU 2016-02 if the lease component is the predominant component and is accounted for under ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), if the nonlease components are the predominant components. We have elected to take this practical expedient. Storage rental revenue associated with our data center business was $60,582 and $120,300 for the three and six months ended June 30, 2019, respectively, which includes approximately $9,900 and $19,000 of revenue associated with power and connectivity for the three and six months ended June 30, 2019, respectively. The revenue related to the service component of our data center business remains unchanged from the adoption of ASU 2016-02 and is recognized in the period the related services are provided. Our accounting treatment for data center revenue was not significantly impacted by the adoption of ASU 2016-02.

The future minimum lease payments we expect to receive under non-cancellable data center operating leases, for which we are the lessor, excluding month to month leases, for the next five years are as follows:

	Future minimum lease payments
2019 (excluding the six months ended June 30, 2019)	$	103,016
2020	155,581
2021	111,945
2022	79,763
2023	61,684

d. 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. The majority of our leased facilities are classified as operating leases that, on average, have initial lease terms of five to 10 years, with one or more lease renewal options to extend the lease term. Our lease renewal option terms generally range from one to five years. The exercise of the lease renewal option is at our sole discretion and may contain fixed rent, fair market value based rent or Consumer Price Index rent escalation clauses. We include option periods in the lease term when our failure to renew the lease would result in an economic disincentive, thereby making it reasonably certain that we will renew the lease. We recognize straight line rental expense over the life of the lease and any fair market value or Consumer Price Index rent escalations are recognized as variable lease expense in the period in which the obligation is incurred. In addition, we lease certain vehicles and equipment. Vehicle and equipment leases have lease terms ranging from one to seven years.

In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases (Topic 842) which requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases, both operating and financing (formerly referred to as capital leases under ASC 840). ASU 2016-02 requires certain qualitative and quantitative disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases.

We adopted ASU 2016-02 on January 1, 2019 on a modified retrospective basis under which we recognized and measured leases existing at, or entered into after, the beginning of the period of adoption. Therefore, we applied ASC 840 to all earlier comparative periods (prior to the adoption of ASU 2016-02), including disclosures, and recognized the effects of applying ASU 2016-02 as a cumulative-effect adjustment to retained earnings as of January 1, 2019, the effective date of the standard. As such, the comparative Condensed Consolidated Balance Sheet as of December 31, 2018 has not been restated to reflect the adoption of ASU 2016-02. Accordingly, the majority of the amount presented as deferred rent liabilities on our Consolidated Balance Sheet as of December 31, 2018 is now included in the calculation of operating lease right-of-use assets and any remaining amounts are now classified within other liability line items on our Condensed Consolidated Balance Sheet as of June 30, 2019. The transition guidance associated with ASU 2016-02 also permitted certain practical expedients. We elected the "package of 3" practical expedients permitted under the transition guidance which, among other things, allowed us to carryforward our historical lease classifications. We also adopted an accounting policy which provides that leases with an initial term of 12 months or less will not be included within the lease right-of-use assets and lease liabilities recognized on our Condensed Consolidated Balance Sheets after the adoption of ASU 2016-02. We will continue to recognize the lease payments for those leases with an initial term of 12 months or less in the Condensed Consolidated Statements of Operations on a straight-line basis over the lease term.

The lease right-of-use assets and related lease liabilities are classified as either operating or financing. Lease right-of-use assets are calculated as the net present value of future payments plus any capitalized initial direct costs less any tenant improvements or lease incentives. Lease liabilities are calculated as the net present value of future payments. In calculating the present value of the lease payments, we will utilize the rate stated within the lease (in the limited circumstances when such rate is available) or, if no rate is explicitly stated, we have elected to utilize a rate that reflects our securitized incremental borrowing rate by geography for the lease term. In July 2018, the FASB issued ASU 2018-11, Leases - Targeted Improvements ("ASU 2018-11"). ASU 2018-11 provides a practical expedient which allows lessees to account for nonlease components (which include common area maintenance, taxes, and insurance) with the related lease component. Any variable nonlease components are not included within the lease right-of-use asset and lease liability on the Condensed Consolidated Balance Sheets, and instead, are reflected as an expense in the period incurred. We have elected to take this practical expedient upon adoption of ASU 2016-02.

At January 1, 2019, we recognized the cumulative effect of initially applying ASU 2016-02 as an adjustment to the opening balance of (Distributions in excess of earnings) Earnings in excess of distributions, resulting in an increase of approximately $5,800 to stockholders' equity due to certain build to suit leases that were accounted for as financing leases under ASC 840, Leases, but are accounted for as operating leases under ASU 2016-02 at January 1, 2019.

Operating and financing lease right-of-use assets and lease liabilities as of June 30, 2019 and January 1, 2019 (date of adoption of ASU 2016-02) are as follows:

Description	Location in Balance Sheet	June 30, 2019		January 1, 2019 (Date of Adoption of ASU 2016-02)
Assets:
Operating lease right-of-use assets(1)	Operating lease right-of-use assets	$	1,793,807	$	1,825,721
Financing lease right-of-use assets, net of accumulated depreciation(2)	Property, plant and equipment, net	344,320		361,078
Total		$	2,138,127	$	2,186,799
Liabilities:
Current
Operating lease liabilities	Accrued expenses and other current liabilities	$	212,968	$	209,911
Financing lease liabilities	Current portion of long-term debt	50,116		50,437
Total current lease liabilities		263,084		260,348
Long-term
Operating lease liabilities	Long-term operating lease liabilities, net of current portion	1,655,477		1,685,771
Financing lease liabilities	Long-term Debt, net of current portion	331,233		350,263
Total long-term lease liabilities		1,986,710		2,036,034
Total		$	2,249,794	$	2,296,382

______________________________________________________________

(1) At June 30, 2019, these assets are comprised of approximately 98% real estate related assets (which include land, buildings and racking) and 2% non-real estate related assets (which include warehouse equipment, vehicles, furniture and fixtures and computer hardware and software).

(2) At June 30, 2019, these assets are comprised of approximately 62% real estate related assets and 38% non-real estate related assets.

The components of the lease expense for the three and six months ended June 30, 2019 are as follows:

Description	Location in Statement of Operations	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Operating lease cost(1)	Cost of sales and Selling, general and administrative	$	113,392	$	222,571
Financing lease cost:
Depreciation of financing lease right-of-use assets	Depreciation and amortization	$	14,942	$	31,271
Interest expense for financing lease liabilities	Interest expense, net	4,925		11,067
Total financing lease cost		$	19,867	$	42,338

______________________________________________________________

(1) Of the $113,392 incurred for the three months ended June 30, 2019, $110,441 is included within Cost of sales and $2,951 is included within Selling, general and administrative expenses. Of the $222,571 incurred for the six months ended June 30, 2019, $216,335 is included within Cost of sales and $6,236 is included within Selling, general and administrative expenses. Operating lease cost includes variable lease costs of $23,847 and $46,610 for the three and six months ended June 30, 2019, respectively.

We sublease certain real estate to third parties. We recognized sublease income of $1,671 and $3,554 for the three and six months ended June 30, 2019, respectively.

Weighted average remaining lease terms and discount rates as of June 30, 2019 are as follows:

Remaining Lease Term:
Operating leases	11.0 Years
Financing leases	11.0 Years
Discount Rate:
Operating leases	7.1%
Financing leases	5.6%

The estimated minimum future lease payments as of June 30, 2019, are as follows:

Year	Operating Leases(1)			Sublease Income			Financing Leases(1)
2019 (excluding the six months ended June 30, 2019)	$	171,378		$	(3,494	)	$	40,635
2020	321,670			(5,728		)	60,377
2021	295,696			(4,828		)	54,766
2022	271,552			(4,462		)	48,071
2023	246,252			(4,333		)	40,351
Thereafter	1,482,286			(10,185		)	296,260
Total minimum lease payments	2,788,834			$	(33,030	)	540,460
Less amounts representing interest or imputed interest	(920,389		)				(159,111		)
Present value of lease obligations	$	1,868,445					$	381,349

The estimated minimum future lease payments as of December 31, 2018 are as follows:

Year	Operating Leases(1)		Sublease Income			Financing Leases(1)(2)
2019	$	323,454	$	(7,525	)	$	80,513
2020	293,276		(7,200		)	71,335
2021	267,379		(7,063		)	61,269
2022	246,128		(6,694		)	52,832
2023	221,808		(6,409		)	44,722
Thereafter	1,287,807		(6,279		)	377,750
Total minimum lease payments	$	2,639,852	$	(41,170	)	688,421
Less amounts representing interest						(241,248		)
Present value of lease obligations						$	447,173

_______________________________________________________________________________

(1) Estimated minimum future lease payments exclude variable common area maintenance charges, insurance and taxes. Differences in estimated lease payments between June 30, 2019 and December 31, 2018 are primarily related to adjustments to account for certain build to suit leases that were accounted for as financing obligations under ASC 840 but are accounted for as operating leases under ASU 2016-02 and foreign currency exchange rate impacts.

(2) Includes capital lease and financing obligations associated with build to suit lease transactions at December 31, 2018.

As of June 30, 2019, we do not have any material operating or financing leases that are signed but have not yet commenced and we have certain leases with related parties which are not material to our consolidated financial statements.

Other information: Supplemental cash flow information relating to our leases for the six months ended June 30, 2019 is as follows:

Cash paid for amounts included in measurement of lease liabilities:	Six Months Ended June 30, 2019
Operating cash flows used in operating leases	$	167,426
Financing cash flows used in financing leases	$	31,146
Non-cash items:
Operating lease modifications and reassessments	$	14,024
New operating leases (including acquisitions)	$	87,482
New financing leases, modifications and reassessments	$	13,662

e.    Stock-Based Compensation

We record stock-based compensation expense, utilizing the straight-line method, for the cost of stock options, restricted stock units ("RSUs"), performance units ("PUs") and shares of stock issued under our employee stock purchase plan (together, "Employee Stock-Based Awards"). There have been no significant changes to our accounting policies, assumptions and valuation methodologies related to the accounting for our Employee Stock-Based Awards as disclosed in Note 2.n. to Notes to Consolidated Financial Statements included in our Annual Report.

For our Employee Stock-Based Awards made on or after February 20, 2019, we have included the following retirement provision: Upon an employee’s retirement on or after attaining age 58, if the sum of (i) the award recipient’s age at retirement and (ii) the award recipient’s years of service with the company totals at least 70, the award recipient is entitled to continued vesting of any outstanding Employee Stock-Based Awards which include the 2019 Retirement Criteria subsequent to their retirement, provided that, for awards granted in the year of retirement, their retirement occurs on or after July 1st (the “2019 Retirement Criteria”). Accordingly, (i) grants of Employee Stock-Based Awards to an employee who has met the 2019 Retirement Criteria on or before the date of grant, or will meet the Retirement Criteria before July 1^st of the year of the grant, will be expensed between the date of grant and July 1^st of the grant year and (ii) grants of Employee Stock-Based Awards to employees who will meet the 2019 Retirement Criteria during the award’s normal vesting period will be expensed between the date of grant and the date upon which the award recipient meets the 2019 Retirement Criteria. Stock options and RSUs granted to recipients who meet the 2019 Retirement Criteria will continue vesting on the original vesting schedule, and the stock options will remain exercisable up to three years after retirement, or the original expiration date of the stock options, if earlier. PUs granted to recipients who meet the 2019 Retirement Criteria will continue to vest and be delivered in accordance with the original vesting schedule of the applicable PU award and remain subject to the same performance conditions.

Stock-based compensation expense for Employee Stock-Based Awards for the three and six months ended June 30, 2019 was $12,501 ($11,649 after tax or $0.04 per basic and diluted share) and $21,020 ($19,585 after tax or $0.07 per basic and diluted share), respectively, and for the three and six months ended June 30, 2018 was $8,689 ($8,032 after tax or $0.03 per basic and diluted share) and $16,073 ($14,865 after tax or $0.05 per basic and diluted share), respectively. The substantial majority of the stock-based compensation expense for Employee Stock-Based Awards is included in Selling, general and administrative expenses in the accompanying Condensed Consolidated Statements of Operations. As of June 30, 2019, unrecognized compensation cost related to the unvested portion of our Employee Stock-Based Awards was $61,833 and is expected to be recognized over a weighted-average period of 2.1 years.

Stock Options

A summary of stock option activity for the six months ended June 30, 2019 is as follows:

	Stock Options
Outstanding at December 31, 2018	4,271,834
Granted	920,706
Exercised	(194,480	)
Forfeited	(12,525	)
Expired	(15,647	)
Outstanding at June 30, 2019	4,969,888
Options exercisable at June 30, 2019	3,160,175
Options expected to vest	1,704,441

Restricted Stock Units

The fair value of RSUs vested during the three and six months ended June 30, 2019 and 2018 is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Fair value of RSUs vested	$	2,375	$	676	$	17,710	$	16,006

A summary of RSU activity for the six months ended June 30, 2019 is as follows:

	RSUs
Non-vested at December 31, 2018	1,196,566
Granted	731,801
Vested	(527,239	)
Forfeited	(55,070	)
Non-vested at June 30, 2019	1,346,058

Performance Units

The fair value of earned PUs that vested during the three and six months ended June 30, 2019 and 2018 is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Fair value of earned PUs that vested	$	—	$	—	$	6,503	$	3,033

A summary of PU activity for the six months ended June 30, 2019 is as follows:

	Original PU Awards		PU Adjustment(1)		Total PU Awards
Non-vested at December 31, 2018	967,049		(299,948	)	667,101
Granted	380,856		—		380,856
Vested	(169,523	)	—		(169,523	)
Forfeited/Performance or Market Conditions Not Achieved	(11,093	)	(14,850	)	(25,943	)
Non-vested at June 30, 2019	1,167,289		(314,798	)	852,491

_______________________________________________________________________________

(1) Represents an increase or decrease in the number of original PUs awarded based on either the final performance criteria or market condition achievement at the end of the performance period of such PUs or a change in estimated awards based on the forecasted performance against the predefined targets.

As of June 30, 2019, we expected 100% achievement of the predefined revenue, return on invested capital and Adjusted EBITDA (as defined in Note 6) targets associated with the awards of PUs made in 2019, 2018 and 2017.

f.    Income (Loss) Per Share—Basic and Diluted

Basic income (loss) per common share is calculated by dividing income (loss) by the weighted average number of common shares outstanding. The calculation of diluted income (loss) per share is consistent with that of basic income (loss) per share, but gives effect to all potential common shares (that is, securities such as stock options, RSUs or PUs) that were outstanding during the period, unless the effect is antidilutive.

The calculation of basic and diluted income (loss) per share for the three and six months ended June 30, 2019 and 2018 are as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2019		2018			2019		2018
Income (loss) from continuing operations	$	92,347	$	92,263		$	122,823	$	131,652
Less: Net income (loss) attributable to noncontrolling interests	34		142			925		610
Income (loss) from continuing operations (utilized in numerator of Earnings Per Share calculation)	$	92,313	$	92,121		$	121,898	$	131,042
Income (loss) from discontinued operations, net of tax	$	128	$	(360	)	$	104	$	(822	)
Net income (loss) attributable to Iron Mountain Incorporated	$	92,441	$	91,761		$	122,002	$	130,220
Weighted-average shares—basic	286,925,000		285,984,000			286,727,000		285,622,000
Effect of dilutive potential stock options	148,629		237,708			190,016		243,636
Effect of dilutive potential RSUs and PUs	407,659		347,543			570,040		415,929
Weighted-average shares—diluted	287,481,288		286,569,251			287,487,056		286,281,565
Earnings (losses) per share—basic:
Income (loss) from continuing operations	$	0.32	$	0.32		$	0.43	$	0.46
Income (loss) from discontinued operations, net of tax	—		—			—		—
Net income (loss) attributable to Iron Mountain Incorporated(1)	$	0.32	$	0.32		$	0.43	$	0.46
Earnings (losses) per share—diluted:
Income (loss) from continuing operations	$	0.32	$	0.32		$	0.42	$	0.46
Income (loss) from discontinued operations, net of tax	—		—			—		—
Net income (loss) attributable to Iron Mountain Incorporated(1)	$	0.32	$	0.32		$	0.42	$	0.45
Antidilutive stock options, RSUs and PUs, excluded from the calculation	5,004,112		3,272,502			4,494,637		3,257,322

_______________________________________________________________________________

(1) Columns may not foot due to rounding.

g. Income Taxes

We provide for income taxes during interim periods based on our estimate of the effective tax rate for the year. Our estimate of the effective tax rates for the years ending December 31, 2019 and 2018 reflect the impact of the U.S. tax reform legislation, commonly referred to as the Tax Cuts and Jobs Act (the “Tax Reform Legislation”). See Note 7 to Notes to Consolidated Financial Statements included in our Annual Report for additional information regarding the impact the Tax Reform Legislation had on us. Discrete items and changes in our estimate of the annual effective tax rate are recorded in the period they occur. Our effective tax rate is subject to variability in the future due to, among other items: (1) changes in the mix of income between our qualified REIT subsidiaries ("QRSs") and our domestic taxable REIT subsidiaries ("TRSs"), as well as among the jurisdictions in which we operate; (2) tax law changes; (3) volatility in foreign exchange gains and losses; (4) the timing of the establishment and reversal of tax reserves; and (5) our ability to utilize net operating losses that we generate.

Our effective tax rates for the three and six months ended June 30, 2019 and 2018 are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019(1)		2018(1)		2019(1)		2018(2)
Effective Tax Rate	10.3	%	22.0	%	14.7	%	16.5	%

_______________________________________________________________________________

(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, 2019 and for the three months ended June 30, 2018 were the benefit derived from the dividends paid deduction and the impact of differences in the tax rates at which our foreign earnings are subject, including foreign exchange gains and losses in different jurisdictions with different tax rates.  

(2)

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, 2018 were the benefit derived from the dividends paid deduction, a discrete tax benefit of approximately $14,000 associated with the resolution of a tax matter and the impact of differences in the tax rates at which our foreign earnings are subject, including foreign exchange gains and losses in different jurisdictions with different tax rates.

h. Fair Value Measurements

Our financial assets or liabilities that are carried at fair value are required to be measured using inputs from the three levels of the fair value hierarchy. A financial asset or liability's classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The three levels of the fair value hierarchy are as follows:

Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date.

Level 2—Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

Level 3—Unobservable inputs that reflect our assumptions about the assumptions that market participants would use in pricing the asset or liability.

The assets and liabilities carried at fair value measured on a recurring basis as of June 30, 2019 and December 31, 2018, respectively, are as follows:

			Fair Value Measurements at June 30, 2019 Using
Description	Total Carrying Value at June 30, 2019		Quoted prices in active markets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)
Money Market Funds(1)	$	4,418	$	—		$	4,418		$	—
Trading Securities	10,366		9,744		(2)	622		(3)	—
Interest Rate Swap Agreements Liabilities(5)	8,578		—			8,578			—

			Fair Value Measurements at December 31, 2018 Using
Description	Total Carrying Value at December 31, 2018		Quoted prices in active markets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)
Time Deposits(1)	$	956	$	—		$	956		$	—
Trading Securities	10,753		10,248		(2)	505		(3)	—
Derivative Assets(4)	93		—			93			—
Interest Rate Swap Agreements Liabilities(5)	973		—			973			—

_______________________________________________________________________________

(1) Money market funds and time deposits are measured based on quoted prices for similar assets and/or subsequent transactions.

(2) Certain trading securities are measured at fair value using quoted market prices.

(3) Certain trading securities are measured based on inputs that are observable other than quoted market prices.

(4) Derivative assets and liabilities relate to short-term (six months or less) foreign currency contracts that we have entered into to hedge certain of our foreign exchange intercompany exposures. We calculate the value of such forward contracts by adjusting the spot rate utilized at the balance sheet date for translation purposes by an estimate of the forward points observed in active markets. As of June 30, 2019, we had no outstanding forward contracts. As of December 31, 2018, we had outstanding forward contracts to purchase 29,000 Euros and sell $33,374 United States dollars. We have not designated any of the forward contracts we have entered into as hedges.

(5) We have 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, 2019 and December 31, 2018, 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 rate payments (at the fixed rate interest specified in the interest rate swap agreements). We have designated these interest rate swaps as cash flow hedges. Unrealized gains are recognized as assets while unrealized losses are recognized as liabilities. The fair value of the interest rate swaps are estimated using industry standard valuation models using market-based observable inputs, including interest rate curves.

Disclosures are required in the financial statements for items measured at fair value on a non-recurring basis. There were no material items that are measured at fair value on a non-recurring basis at June 30, 2019 and December 31, 2018, other than those disclosed in Note 2.s. to Notes to Consolidated Financial Statements included in our Annual Report, those acquired in acquisitions that occurred during the six months ended June 30, 2019 and our investment in Makespace LLC (as disclosed in Note 9), all of which are based on Level 3 inputs.

The fair value of our long-term debt, which was determined based on either Level 1 inputs or Level 3 inputs, is disclosed in Note 4. Long-term debt is measured at cost in our Condensed Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018.

i.    Accumulated Other Comprehensive Items, Net

The changes in accumulated other comprehensive items, net for the three and six months ended June 30, 2019, respectively, are as follows:

	Three Months Ended June 30, 2019									Six Months Ended June 30, 2019
	Foreign Currency Translation Adjustments			Fair Value Adjustments for Interest Rate Swap Agreements			Total			Foreign Currency Translation Adjustments			Fair Value Adjustments for Interest Rate Swap Agreements			Total
Beginning of Period	$	(247,313	)	$	(3,647	)	$	(250,960	)	$	(264,691	)	$	(973	)	$	(265,664	)
Other comprehensive (loss) income:
Foreign currency translation adjustment(1)	(5,930		)	—			(5,930		)	11,448			—			11,448
Fair value adjustments for interest rate swap agreements	—			(4,931		)	(4,931		)	—			(7,605		)	(7,605		)
Total other comprehensive (loss) income	(5,930		)	(4,931		)	(10,861		)	11,448			(7,605		)	3,843
End of Period	$	(253,243	)	$	(8,578	)	$	(261,821	)	$	(253,243	)	$	(8,578	)	$	(261,821	)

_____________________________________________________________

(1) This amount includes foreign exchange losses (gains) of $4,280 and $(1,861) for the three and six months ended June 30, 2019, respectively, related to the change in fair value of the portion of our Euro Notes (as defined and discussed more fully in Note 4) designated as a hedge of net investment of certain of our Euro denominated subsidiaries. For the six months ended June 30, 2019, we designated, on average, 274,161 Euros of our Euro Notes as a hedge of net investment of certain of our Euro denominated subsidiaries. As of June 30, 2019, cumulative net gains of $16,119 net of tax, are recorded in accumulated other comprehensive items, net associated with this net investment hedge.

The changes in accumulated other comprehensive items, net for the three and six months ended June 30, 2018, respectively, are as follows:

	Three Months Ended June 30, 2018									Six Months Ended June 30, 2018
	Foreign Currency Translation Adjustments			Fair Value Adjustments for Interest Rate Swap Agreements			Total			Foreign Currency Translation Adjustments			Fair Value Adjustments for Interest Rate Swap Agreements		Total
Beginning of Period	$	(73,897	)	$	(185	)	$	(74,082	)	$	(103,989	)	$	—	$	(103,989	)
Other comprehensive (loss) income:
Foreign currency translation adjustment(1)	(135,756		)	—			(135,756		)	(105,664		)	—		(105,664		)
Fair value adjustments for interest rate swap agreements	—			2,388			2,388			—			2,203		2,203
Total other comprehensive (loss) income	(135,756		)	2,388			(133,368		)	(105,664		)	2,203		(103,461		)
End of Period	$	(209,653	)	$	2,203		$	(207,450	)	$	(209,653	)	$	2,203	$	(207,450	)

______________________________________________________________

(1) This amount includes foreign exchange gains of $10,257 and $4,622 for the three and six months ended June 30, 2018, respectively, related to the change in fair value of the portion of our Euro Notes designated as a hedge of net investment of certain of our Euro denominated subsidiaries. For the six months ended June 30, 2018, we designated, on average, 179,881 Euros of our Euro Notes as a hedge of net investment of certain of our Euro denominated subsidiaries.

j. Gain on Disposal/Write-Down of Property, Plant and Equipment, Net

We are currently exploring strategic options regarding how to maintain and support the infrastructure of select offerings within our Iron Mountain Iron Cloud (“Iron Cloud”) portfolio of products and services. During the second quarter of 2019, we performed a long-lived asset impairment analysis on the assets associated with these select offerings and concluded that the associated carrying value of the long-lived assets (which consisted entirely of property, plant and equipment) was not recoverable based upon the underlying cash flows associated with these select offerings. Therefore, we recorded an impairment charge of approximately $24,000 during the second quarter of 2019, representing the net carrying value of the long-lived assets associated with these select offerings.

Consolidated gain on disposal/write-down of property, plant and equipment, net, for the three and six months ended June 30, 2019 was approximately $8,400 and $7,800, respectively. The gain for the six months ended June 30, 2019 consisted primarily of gains associated with the sale of certain land and buildings in the United Kingdom of approximately $36,000. These gains were partially offset by losses primarily associated with (i) the impairment charge on the assets associated with the select offerings within our Iron Cloud portfolio, as described above, and (ii) the write-down of certain property, plant and equipment in our North American Records and Information Management Business of approximately $3,100.

k.    Other (Income) Expense, Net

Other (income) expense, net for the three and six months ended June 30, 2019 and 2018 consists of the following:

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Foreign currency transaction (gains) losses, net	$	(19,331	)	$	(18,624	)	$	(1,634	)	$	3,161
Other, net	4,139			(432		)	1,652			(2,066		)
	$	(15,192	)	$	(19,056	)	$	18		$	1,095

The gain or loss on foreign currency transactions, calculated as the difference between the historical exchange rate and the exchange rate at the applicable measurement date, include gains or losses related to (i) borrowings in certain foreign currencies under our Revolving Credit Facility (as defined and discussed more fully in Note 4), (ii) our Euro Notes, (iii) certain foreign currency denominated intercompany obligations of our foreign subsidiaries to us and between our foreign subsidiaries, which are not considered permanently invested, and (iv) amounts that are paid or received on the net settlement amount from forward contracts (as more fully discussed in Note 2.h.).

Other, net for the six months ended June 30, 2019 includes the gain on sale from the Consumer Storage Transaction (as defined and discussed more fully in Note 9) of approximately $4,200 recorded during the first quarter of 2019. In addition, Other, net for the three and six months ended June 30, 2019 includes the change in estimated fair value of the noncontrolling interests associated with our business in India, which are accounted for as mandatorily redeemable noncontrolling interests.

l.    New Accounting Pronouncements

In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) ("ASU 2018-15"). ASU 2018-15 aligns the accounting for costs incurred to implement a cloud computing arrangement that is a service arrangement with the guidance on capitalizing costs associated with developing or obtaining internal-use software. We adopted ASU 2018-15 on January 1, 2019. ASU 2018-15 did not have a material impact on our consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02. We adopted ASU 2016-02 on January 1, 2019 on a modified retrospective basis. See Note 2.d. for information regarding the impact of the adoption of ASU 2016-02 on our consolidated financial statements.

m. Correction in Presentation

Subsequent to our conversion to a REIT, we have historically classified gains on sale of real estate, net of tax, as a separate line on our consolidated statements of operations and excluded such amounts from our reported operating income. We presented such amounts net of tax as these gains were presented below the provision (benefit) for income taxes on our consolidated statements of operations. Commencing with the first quarter of 2019, we now present gains on sale of real estate as a component of operating income in the line item (gain) loss on disposal/write-down of property, plant and equipment, net. See Note 2.j. for details of the (gain) loss on disposal/write-down of property, plant and equipment, net recognized during the three and six months ended June 30, 2019. Such amounts are presented gross of tax with any tax impact presented within provision (benefit) for income taxes. All prior periods will be conformed to this presentation. We did not recognize any gains on sale of real estate during the three and six months ended June 30, 2018. During the third and fourth quarter of 2018, we recognized a total of approximately $55,000 of gains on sale of real estate, net of tax.

n. Immaterial Restatement

In June 2019, we received a notification of assessment from tax and customs authorities in the Netherlands related to a value-added tax (“VAT”) liability of approximately 16,800 Euros primarily related to the years ending December 31, 2018 and 2017. We have established a reserve for this matter based upon our estimate of the amount of loss that is both probable and estimable, inclusive of interest and penalties. See Note 7 for additional information on this matter.

This matter relates to periods prior to January 1, 2019, resulting in (i) an understatement of our prior years' reported selling, general and administrative expense and interest expense and (ii) an overstatement of our prior years’ reported provision for income taxes for the related tax impact. Based on our estimate of the amount of loss related to this matter that is both probable and estimable, we believe selling, general and administrative expenses and interest expense were understated by approximately $11,000 and $400, respectively, and the provision for income taxes was overstated by approximately $2,000 for the year ended December 31, 2018, which, in the aggregate, would reduce net income from continuing operations by approximately $9,400 for the year ended December 31, 2018. Based on our estimate of the amount of loss related to this matter that is both probable and estimable, we believe the selling, general and administrative expenses and interest expense were understated by approximately $16,600 and $100, respectively, and the provision for income taxes was overstated by approximately $3,000 for the year ended December 31, 2017, which, in the aggregate, would reduce net income from continuing operations by approximately $13,700 for the year ended December 31, 2017. We have determined that no prior period financial statement was materially misstated as a result of the previously unrecorded reserves related to this matter. As a result, we have restated ending (Distributions in excess of earnings) Earnings in excess of distributions as of December 31, 2018 in the amount of approximately $23,100 for the cumulative impact of the aforementioned items. There was no impact to the Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2019, as a result of this matter.

Additionally, we have restated our 2018 Condensed Consolidated Balance Sheet, and each of our Condensed Consolidated Statements of Operations, our Condensed Consolidated Statements of Comprehensive Income (Loss), our Condensed Consolidated Statements of Equity and the related notes for the three and six months ended June 30, 2018 to reflect the impact of the reserve we have established for this matter in those periods. There was no change to the following lines of the Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2018: (1) cash flows from operating activities, (2) cash flows from investing activities and (3) cash flows from financing activities.

The following table sets forth the effect of the immaterial restatement to certain line items of our Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2018:

	Three Months Ended June 30, 2018			Six Months Ended June 30, 2018
Selling, general and administrative	$	1,899		$	9,339
Total Operating Expenses	$	1,899		$	9,339
Operating Income (Loss)	$	(1,899	)	$	(9,339	)
Interest Expense, Net	$	89		$	165
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes	$	(1,988	)	$	(9,504	)
Provision (Benefit) for Income Taxes	$	(348	)	$	(1,639	)
Income (Loss) from Continuing Operations	$	(1,640	)	$	(7,865	)
Net Income (Loss)	$	(1,640	)	$	(7,865	)
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	(1,640	)	$	(7,865	)
Earnings (Losses) per Share - Basic:
Income (Loss) from Continuing Operations	$	(0.01	)	$	(0.03	)
Net Income (Loss) from Continuing Operations Attributable to Iron Mountain	$	(0.01	)	$	(0.03	)
Earnings (Losses) per Share - Diluted:
Income (Loss) from Continuing Operations	$	(0.01	)	$	(0.03	)
Net Income (Loss) from Continuing Operations Attributable to Iron Mountain	$	(0.01	)	$	(0.03	)

The following table sets forth the effect of the immaterial restatement to certain line items of our Condensed Consolidated Balance Sheet as of December 31, 2018:

	December 31, 2018
Total Other Assets, Net	$	4,971
Total Assets	$	4,971
Accrued expenses and other current liabilities	$	28,097
Total Current Liabilities	$	28,097
(Distribution in excess of earnings) Earnings in excess of distributions	$	(23,126	)
Total Iron Mountain Incorporated Stockholders' Equity	$	(23,126	)

The immaterial restatement changed (Distribution in excess of earnings) Earnings in excess of distributions disclosed in our Condensed Consolidated Statements of Equity for the periods ended March 31, 2019, June 30, 2018, March 31, 2018 and December 31, 2017 by $(23,126), $(21,573), $(19,933) and $(13,708), respectively.

Prospectively, we will process an immaterial restatement of our consolidated financial statements for the quarter periods ended September 30, 2018 and December 31, 2018, as well as for the annual periods ended December 31, 2018 and 2017, when those statements are reproduced on a comparative basis in our Form 10-Q for the quarterly period ending September 30, 2019 and our Annual Report on Form 10-K for the year ending December 31, 2019.

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Acquisitions

6 Months Ended

Jun. 30, 2019

Business Combinations [Abstract]

Acquisitions

We account for acquisitions using the acquisition method of accounting, and, accordingly, the assets and liabilities acquired are recorded at their estimated fair values and the results of operations for each acquisition have been included in our consolidated results from their respective acquisition dates.

Acquisitions Completed During the Six Months Ended June 30, 2019

During the six months ended June 30, 2019, in order to enhance our existing operations in the United States, the United Kingdom, Switzerland, Thailand and Latvia and to expand our operations into Bulgaria, we completed the acquisition of six storage and records management companies and one art storage company for total cash consideration of approximately $36,800.

Purchase Price Allocation

A summary of the cumulative consideration paid and the preliminary allocation of the purchase price paid for all of our 2019 acquisitions through June 30, 2019 is as follows:

	Six Months Ended June 30, 2019
Cash Paid (gross of cash acquired)(1)	$	39,072
Purchase Price Holdbacks and Other	2,394
Total Consideration	41,466
Fair Value of Identifiable Assets Acquired:
Cash	2,285
Accounts Receivable, Prepaid Expenses and Other Assets	3,164
Property, Plant and Equipment(2)	4,538
Customer Relationship Intangible Assets	15,670
Operating Lease Right-of-Use Assets	13,256
Accounts Payable, Accrued Expenses and Other Liabilities	(2,124		)
Operating Lease Liabilities	(13,256		)
Deferred Income Taxes	(1,628		)
Total Fair Value of Identifiable Net Assets Acquired	21,905
Goodwill Initially Recorded(3)	$	19,561

_______________________________________________________________________________

(1) Included in cash paid for acquisitions in the Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2019 is net cash acquired of $2,285 and contingent and other payments, net of $7,864 related to acquisitions made in previous years.

(2) Consists primarily of leasehold improvements, racking structures and warehouse equipment. These assets are depreciated using the straight-line method with the useful lives as noted in Note 2.f. to Notes to Consolidated Financial Statements included in our Annual Report.

(3) The goodwill associated with acquisitions is primarily attributable to the assembled workforce, expanded market opportunities and costs and other operating synergies anticipated upon the integration of the operations of us and the acquired businesses.

See Note 6 to Notes to Consolidated Financial Statements included in our Annual Report for additional information regarding our allocations of the purchase price for acquisitions. The preliminary purchase price allocations that are not finalized as of June 30, 2019 primarily relate to the final assessment of the fair values of intangible assets and liabilities (primarily customer relationship intangible assets), property, plant and equipment (primarily building, building improvements and racking structures), right-of-use assets and liabilities associated with acquired operating leases, contingencies and income taxes (primarily deferred income taxes), primarily associated with the acquisitions we closed in 2019.

As the valuation of certain assets and liabilities for purposes of purchase price allocations are preliminary in nature, they are subject to adjustment as additional information is obtained about the facts and circumstances regarding these assets and liabilities that existed at the acquisition date. Any adjustments to our estimates of purchase price allocation will be made in the periods in which the adjustments are determined 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 three months ended June 30, 2019 were not material to our results from operations.

Acquisition of IO Data Centers in 2018

On January 10, 2018, we completed the IODC Transaction. At the closing of the IODC Transaction, we paid approximately $1,347,000. In February 2019, we paid approximately $31,000 in additional purchase price associated with the execution of customer contracts from the closing through the one-year anniversary of the IODC Transaction, which was accrued at December 31, 2018. This amount, net of amortization, is reported as a third-party commissions asset as a component of Other within Other assets, net, in our Condensed Consolidated Balance Sheets at June 30, 2019 and December 31, 2018.

The unaudited consolidated pro forma financial information (the "Pro Forma Financial Information") below summarizes the combined results of us and IODC on a pro forma basis as if the IODC Transaction had occurred on January 1, 2017. The Pro Forma Financial Information is presented for informational purposes and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place on January 1, 2017. The Pro Forma Financial Information, for the period presented, includes purchase accounting adjustments (including amortization expenses from acquired intangible assets and depreciation of acquired property, plant and equipment). We and IODC collectively incurred $28,064 of operating expenditures to complete the IODC Transaction (including advisory and professional fees). These operating expenditures have been reflected within the results of operations in the Pro Forma Financial Information as if they were incurred on January 1, 2017.

	Three Months Ended June 30, 2018		Six Months Ended June 30, 2018
Total Revenues	$	1,060,823	$	2,106,771
Income from Continuing Operations	$	92,263	$	141,604
Per Share Income from Continuing Operations - Basic	$	0.32	$	0.49
Per Share Income from Continuing Operations - Diluted	$	0.32	$	0.49

In addition to our acquisition of IODC, we completed certain other acquisitions during the first six months of 2019 and in fiscal year 2018. The Pro Forma Financial Information does not reflect these acquisitions due to the insignificant impact of these acquisitions on our consolidated results of operations.

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Debt

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Debt

Long-term debt is as follows:

	June 30, 2019											December 31, 2018
	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)	$	1,181,376		$	(12,548	)	$	1,168,828		$	1,181,376	$	793,832		$	(14,117	)	$	779,715		$	793,832
Term Loan A(1)	234,375			—			234,375			234,375		240,625			—			240,625			240,625
Term Loan B(2)	689,782			(8,118		)	681,664			668,784		693,169			(8,742		)	684,427			660,013
Australian Dollar Term Loan (the "AUD Term Loan")(3)	230,048			(2,691		)	227,357			231,506		233,955			(3,084		)	230,871			235,645
UK Bilateral Revolving Credit Facility ("UK Bilateral Facility")(4)	177,762			(2,030		)	175,732			177,762		178,299			(2,357		)	175,942			178,299
43/8% Senior Notes due 2021 (the "43/8% Notes")(5)	500,000			(3,295		)	496,705			505,000		500,000			(4,155		)	495,845			488,750
6% Senior Notes due 2023 (the "6% Notes due 2023")(5)	600,000			(4,576		)	595,424			612,000		600,000			(5,126		)	594,874			606,000
53/8% CAD Senior Notes due 2023 (the "CAD Notes")	190,972			(2,335		)	188,637			192,882		183,403			(2,506		)	180,897			186,154
53/4% Senior Subordinated Notes due 2024 (the "53/4% Notes")(5)	1,000,000			(7,096		)	992,904			1,010,000		1,000,000			(7,782		)	992,218			940,000
3% Euro Senior Notes due 2025 (the "Euro Notes")(5)	341,128			(3,781		)	337,347			351,113		343,347			(4,098		)	339,249			321,029
37/8% GBP Senior Notes due 2025 (the "GBP Notes")	507,891			(6,074		)	501,817			502,192		509,425			(6,573		)	502,852			453,811
53/8% Senior Notes due 2026 (the "53/8% Notes")	250,000			(2,971		)	247,029			252,500		250,000			(3,185		)	246,815			224,375
47/8% Senior Notes due 2027 (the "47/8% Notes")(5)	1,000,000			(11,731		)	988,269			990,000		1,000,000			(12,442		)	987,558			855,000
51/4% Senior Notes due 2028 (the "51/4% Notes")(5)	825,000			(10,333		)	814,667			825,000		825,000			(10,923		)	814,077			713,625
Real Estate Mortgages, Financing Lease Liabilities and Other	559,622			(425		)	559,197			559,622		606,702			(171		)	606,531			606,702
Accounts Receivable Securitization Program(6)	254,962			(149		)	254,813			254,962		221,673			(218		)	221,455			221,673
Mortgage Securitization Program(7)	50,000			(1,055		)	48,945			50,000		50,000			(1,128		)	48,872			50,000
Total Long-term Debt	8,592,918			(79,208		)	8,513,710					8,229,430			(86,607		)	8,142,823
Less Current Portion	(123,527		)	—			(123,527		)			(126,406		)	—			(126,406		)
Long-term Debt, Net of Current Portion	$	8,469,391		$	(79,208	)	$	8,390,183				$	8,103,024		$	(86,607	)	$	8,016,417

______________________________________________________________

(1) Collectively, the credit agreement ("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. Of the $1,181,376 of outstanding borrowings under the Revolving Credit Facility as of June 30, 2019, 1,028,900 was denominated in United States dollars, 76,800 was denominated in Canadian dollars and 82,500 was denominated in Euros. In addition, we also had various outstanding letters of credit totaling $35,250. The remaining amount available for borrowing under the Revolving Credit Facility as of June 30, 2019 was $533,374 (which amount represents the maximum availability as of such date). The average interest rate in effect under the Credit Agreement was 4.0% as of June 30, 2019. The average interest rate in effect under the Revolving Credit Facility as of June 30, 2019 was 4.0% and the interest rate in effect under Term Loan A as of June 30, 2019 was 4.2%.

(2) In connection with the 2018 First Amendment (as defined in Note 5 to Notes to Consolidated Financial Statements included in our Annual Report), Iron Mountain Information Management, LLC ("IMIM") entered into an incremental term loan activation notice (the "Activation Notice") with certain lenders pursuant to which the lenders party to the Activation Notice agreed to provide commitments to fund an incremental term loan B in the amount of $700,000 (the "Term Loan B"). On March 26, 2018, IMIM borrowed the full amount of the Term Loan B. The Term Loan B is scheduled to mature on January 2, 2026. The interest rate in effect as of June 30, 2019 was 4.2%. The amount of debt for the Term Loan B reflects an unamortized original issue discount of $1,468 and $1,581 as of June 30, 2019 and December 31, 2018, respectively.

(3) The interest rate in effect as of June 30, 2019 was 5.1%. We had 329,688 Australian dollars outstanding on the AUD Term Loan as of June 30, 2019. The amount of debt for the AUD Term Loan reflects an unamortized original issue discount of $1,458 and $1,690 as of June 30, 2019 and December 31, 2018, respectively.

(4) The interest rate in effect as of June 30, 2019 was 3.1%.

(5) Collectively, the "Parent Notes".

(6) The interest rate in effect as of June 30, 2019 was 3.4%.

(7) The interest rate in effect as of June 30, 2019 was 3.5%.

See Note 4 to Notes to Consolidated Financial Statements included in our Annual Report for additional information regarding our 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, 2019 are consistent with the levels of the fair value hierarchy used to determine the fair value of our debt as of December 31, 2018 (which are disclosed in our Annual Report). Additionally, see Note 5 to Notes to Consolidated Financial Statements included in our Annual Report for information regarding which of our consolidated subsidiaries guarantee certain of our debt instruments. There have been no material changes to our long-term debt since December 31, 2018.

Cash Pooling

As described in greater detail in Note 4 to Notes to Consolidated Financial Statements included in our Annual Report, certain of our subsidiaries participate in cash pooling arrangements (the “Cash Pools”) in order to help manage global liquidity requirements. We currently utilize two separate cash pools, one of which we utilize to manage global liquidity requirements for our QRSs (the "QRS Cash Pool") and the other for our TRSs (the "TRS Cash Pool").

The approximate amount of the net cash position for our QRS Cash Pool and the TRS Cash Pool and the approximate amount of the gross position and outstanding debit balances for each of these pools as of June 30, 2019 and December 31, 2018 are as follows:

	June 30, 2019							December 31, 2018
	Gross Cash Position		Outstanding Debit Balances			Net Cash Position		Gross Cash Position		Outstanding Debit Balances			Net Cash Position
QRS Cash Pool	$	308,200	$	(306,500	)	$	1,700	$	300,800	$	(298,800	)	$	2,000
TRS Cash Pool	295,500		(292,700		)	2,800		281,500		(279,300		)	2,200

The net cash position balances as of June 30, 2019 and December 31, 2018 are reflected as cash and cash equivalents in the Condensed Consolidated Balance Sheets.

Debt Covenants

The Credit Agreement, our 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 indentures or other agreements governing our indebtedness. The Credit Agreement uses EBITDAR-based calculations as the primary measures of financial performance, including leverage and fixed charge coverage ratios.

Our leverage and fixed charge coverage ratios under the Credit Agreement as of June 30, 2019 and December 31, 2018, as well as our leverage ratio under our indentures as of June 30, 2019 and December 31, 2018 are as follows:

	June 30, 2019	December 31, 2018	Maximum/Minimum Allowable
Net total lease adjusted leverage ratio	5.8	5.6	Maximum allowable of 6.5
Net secured debt lease adjusted leverage ratio	2.8	2.6	Maximum allowable of 4.0
Bond leverage ratio (not lease adjusted)	6.1	5.8	Maximum allowable of 6.5-7.0(1)
Fixed charge coverage ratio	2.2	2.2	Minimum allowable of 1.5

______________________________________________________________

(1) The maximum allowable leverage ratio under our indentures for the 4⁷/₈% Notes, the GBP Notes and the 5¹/₄% Notes is 7.0, while the maximum allowable leverage ratio under the indentures pertaining to our remaining senior and senior subordinated notes is 6.5. In certain instances as provided in our indentures, we have the ability to incur additional indebtedness that would result in our bond leverage ratio exceeding the maximum allowable ratio under our indentures and still remain in compliance with the covenant.

Noncompliance with these leverage and fixed charge coverage ratios would have a material adverse effect on our financial condition and liquidity.

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Selected Consolidated Financial Statements of Parent, Guarantors and Non-Guarantors

6 Months Ended

Jun. 30, 2019

Selected Consolidated Financial Statements of Parent, Guarantors, Canada Company and Non-Guarantors

Selected Consolidated Financial Statements of Parent, Guarantors and Non-Guarantors

The following data summarizes the consolidating results of IMI on the equity method of accounting as of June 30, 2019 and December 31, 2018 and for the three and six months ended June 30, 2019 and 2018 and are prepared on the same basis as the consolidated financial statements.

The Parent Notes, the CAD Notes, the GBP Notes, and the 5³/₈% Notes are guaranteed by the subsidiaries referred to below as the Guarantors. These subsidiaries are 100% owned by IMI. The guarantees are full and unconditional, as well as joint and several.

Additionally, IMI guarantees the CAD Notes, which were issued by Iron Mountain Canada Operations ULC ("Canada Company"), the GBP Notes, which were issued by Iron Mountain (UK) PLC ("IM UK"), and the 5³/₈% Notes, which were issued by Iron Mountain US Holdings, Inc., which is one of the Guarantors. Canada Company and IM UK do not guarantee the Parent Notes. The subsidiaries that do not guarantee the Parent Notes, the CAD Notes, the GBP Notes, and the 5³/₈% Notes are referred to below as the Non-Guarantors.

In the normal course of business, we periodically change the ownership structure of our subsidiaries to meet the requirements of our business. In the event of such changes, we recast the prior period financial information within this footnote to conform to the current period presentation in the period such changes occur. Generally, these changes do not alter the designation of the underlying subsidiaries as Guarantors or Non-Guarantors. However, they may change whether the underlying subsidiary is owned by the Parent, a Guarantor or a Non-Guarantor. If such a change occurs, the amount of investment in subsidiaries in the below Condensed Consolidated Balance Sheets and equity in the earnings (losses) of subsidiaries, net of tax in the below Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) with respect to the relevant Parent, Guarantors, Non-Guarantors and Eliminations columns also would change.

CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30, 2019
	Parent		Guarantors		Non- Guarantors		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents(1)	$	6	$	124,553	$	106,923	$	(69,486	)	$	161,996
Accounts receivable	—		65,357		786,973		—			852,330
Intercompany receivable	—		1,184,345		—		(1,184,345		)	—
Prepaid expenses and other	—		87,505		113,301		(29		)	200,777
Total Current Assets	6		1,461,760		1,007,197		(1,253,860		)	1,215,103
Property, Plant and Equipment, Net	145		3,013,538		1,544,876		—			4,558,559
Other Assets, Net:
Long-term notes receivable from affiliates and intercompany receivable	5,072,926		—		—		(5,072,926		)	—
Investment in subsidiaries	1,982,052		1,073,877		—		(3,055,929		)	—
Goodwill	—		2,857,968		1,615,456		—			4,473,424
Operating lease right-of-use assets	—		921,540		872,267		—			1,793,807
Other	2		965,060		715,027		—			1,680,089
Total Other Assets, Net	7,054,980		5,818,445		3,202,750		(8,128,855		)	7,947,320
Total Assets	$	7,055,131	$	10,293,743	$	5,754,823	$	(9,382,715	)	$	13,720,982
Liabilities and Equity
Intercompany Payable	$	892,894	$	—	$	291,451	$	(1,184,345	)	$	—
Debit Balances Under Cash Pools	—		—		69,486		(69,486		)	—
Current Portion of Long-Term Debt	—		54,848		68,708		(29		)	123,527
Total Other Current Liabilities (includes current portion of operating lease liabilities)	270,521		679,750		542,989		—			1,493,260
Long-Term Debt, Net of Current Portion	4,225,317		2,265,699		1,899,167		—			8,390,183
Long-Term Operating Lease Liabilities, Net of Current Portion	—		857,375		798,102		—			1,655,477
Long-Term Notes Payable to Affiliates and Intercompany Payable	—		5,072,926		—		(5,072,926		)	—
Other Long-term Liabilities	8,578		51,721		266,142		—			326,441
Commitments and Contingencies (See Note 7)
Redeemable Noncontrolling Interests	—		—		73,113		—			73,113
Total Iron Mountain Incorporated Stockholders' Equity	1,657,821		1,311,424		1,744,505		(3,055,929		)	1,657,821
Noncontrolling Interests	—		—		1,160		—			1,160
Total Equity	1,657,821		1,311,424		1,745,665		(3,055,929		)	1,658,981
Total Liabilities and Equity	$	7,055,131	$	10,293,743	$	5,754,823	$	(9,382,715	)	$	13,720,982

______________________________________________________________

(1) Included within Cash and Cash Equivalents at June 30, 2019 is approximately $74,000 and $0 of cash on deposit associated with our Cash Pools for the Guarantors and Non-Guarantors, respectively.

CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)

	December 31, 2018
	Parent		Guarantors		Non- Guarantors		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents(1)	$	132	$	61,650	$	169,318	$	(65,615	)	$	165,485
Accounts receivable	—		47,900		798,989		—			846,889
Intercompany receivable	—		818,463		—		(818,463		)	—
Prepaid expenses and other	93		108,879		86,797		(29		)	195,740
Total Current Assets	225		1,036,892		1,055,104		(884,107		)	1,208,114
Property, Plant and Equipment, Net	190		3,002,104		1,487,263		—			4,489,557
Other Assets, Net:
Long-term notes receivable from affiliates and intercompany receivable	4,954,686		—		—		(4,954,686		)	—
Investment in subsidiaries	1,862,048		983,018		—		(2,845,066		)	—
Goodwill	—		2,858,539		1,582,491		—			4,441,030
Other	—		979,483		739,034		—			1,718,517
Total Other Assets, Net	6,816,734		4,821,040		2,321,525		(7,799,752		)	6,159,547
Total Assets	$	6,817,149	$	8,860,036	$	4,863,892	$	(8,683,859	)	$	11,857,218
Liabilities and Equity
Intercompany Payable	$	462,927	$	—	$	355,536	$	(818,463	)	$	—
Debit Balances Under Cash Pools	—		10,612		55,003		(65,615		)	—
Current Portion of Long-Term Debt	—		63,703		62,732		(29		)	126,406
Total Other Current Liabilities	268,373		616,826		479,170		—			1,364,369
Long-Term Debt, Net of Current Portion	4,223,822		1,877,649		1,914,946		—			8,016,417
Long-Term Notes Payable to Affiliates and Intercompany Payable	—		4,954,686		—		(4,954,686		)	—
Other Long-term Liabilities	973		115,994		300,064		—			417,031
Commitments and Contingencies (See Note 7)
Redeemable Noncontrolling Interests	—		—		70,532		—			70,532
Total Iron Mountain Incorporated Stockholders' Equity	1,861,054		1,220,566		1,624,500		(2,845,066		)	1,861,054
Noncontrolling Interests	—		—		1,409		—			1,409
Total Equity	1,861,054		1,220,566		1,625,909		(2,845,066		)	1,862,463
Total Liabilities and Equity	$	6,817,149	$	8,860,036	$	4,863,892	$	(8,683,859	)	$	11,857,218

______________________________________________________________

(1) Included within Cash and Cash Equivalents at December 31, 2018 is approximately $57,200 and $12,700 of cash on deposit associated with our Cash Pools for the Guarantors and Non-Guarantors, respectively.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

	Three Months Ended June 30, 2019
	Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage rental	$	—		$	411,159		$	258,129		$	—		$	669,288
Service	—			246,090			151,529			—			397,619
Intercompany revenues	—			1,158			4,540			(5,698		)	—
Total Revenues	—			658,407			414,198			(5,698		)	1,066,907
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	—			260,675			204,427			—			465,102
Intercompany	—			4,540			1,158			(5,698		)	—
Selling, general and administrative	62			173,443			79,259			—			252,764
Depreciation and amortization	22			104,594			59,715			—			164,331
Loss (Gain) on disposal/write-down of property, plant and equipment, net	—			26,786			(35,191		)	—			(8,405		)
Total Operating Expenses	84			570,038			309,368			(5,698		)	873,792
Operating (Loss) Income	(84		)	88,369			104,830			—			193,115
Interest Expense (Income), Net(1)	49,601			8,640			47,073			—			105,314
Other Expense (Income), Net	359			4,487			(20,038		)	—			(15,192		)
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes	(50,044		)	75,242			77,795			—			102,993
Provision (Benefit) for Income Taxes	—			1,153			9,493			—			10,646
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	(142,485		)	(69,710		)	—			212,195			—
Income (Loss) from Continuing Operations	92,441			143,799			68,302			(212,195		)	92,347
Income (Loss) from Discontinued Operations, Net of Tax	—			144			(16		)	—			128
Net Income (Loss)	92,441			143,943			68,286			(212,195		)	92,475
Less: Net Income (Loss) Attributable to Noncontrolling Interests	—			—			34			—			34
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	92,441		$	143,943		$	68,252		$	(212,195	)	$	92,441
Net Income (Loss)	$	92,441		$	143,943		$	68,286		$	(212,195	)	$	92,475
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustments	(4,280		)	—			(1,511		)	—			(5,791		)
Change in fair value of interest rate swap agreements	(4,931		)	—			—			—			(4,931		)
Equity in Other Comprehensive (Loss) Income of Subsidiaries	(1,650		)	1,121			—			529			—
Total Other Comprehensive (Loss) Income	(10,861		)	1,121			(1,511		)	529			(10,722		)
Comprehensive Income (Loss)	81,580			145,064			66,775			(211,666		)	81,753
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	—			—			173			—			173
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$	81,580		$	145,064		$	66,602		$	(211,666	)	$	81,580

_____________________________________________________________

(1) Included within Interest Expense (Income), Net are intercompany management fees and royalty fees, which are eliminated in our consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Continued)

	Three Months Ended June 30, 2018
	Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage rental	$	—		$	397,449		$	257,990		$	—		$	655,439
Service	—			244,403			160,981			—			405,384
Intercompany revenues	—			1,216			4,305			(5,521		)	—
Total Revenues	—			643,068			423,276			(5,521		)	1,060,823
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	—			251,360			200,104			—			451,464
Intercompany cost of sales	—			4,305			1,216			(5,521		)	—
Selling, general and administrative	36			167,739			84,450			—			252,225
Depreciation and amortization	32			96,170			60,018			—			156,220
(Gain) Loss on disposal/write-down of property, plant and equipment, net	—			(462		)	(84		)	—			(546		)
Total Operating Expenses	68			519,112			345,704			(5,521		)	859,363
Operating (Loss) Income	(68		)	123,956			77,572			—			201,460
Interest Expense (Income), Net(1)	50,313			3,005			48,878			—			102,196
Other Expense (Income), Net	2,767			6,575			(28,398		)	—			(19,056		)
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes	(53,148		)	114,376			57,092			—			118,320
Provision (Benefit) for Income Taxes	—			12,509			13,548			—			26,057
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	(144,909		)	(38,071		)	—			182,980			—
Income (Loss) from Continuing Operations	91,761			139,938			43,544			(182,980		)	92,263
(Loss) Income from Discontinued Operations	—			(273		)	(87		)	—			(360		)
Net Income (Loss)	91,761			139,665			43,457			(182,980		)	91,903
Less: Net Income (Loss) Attributable to Noncontrolling Interests	—			—			142			—			142
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	91,761		$	139,665		$	43,315		$	(182,980	)	$	91,761
Net Income (Loss)	$	91,761		$	139,665		$	43,457		$	(182,980	)	$	91,903
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustment	10,257			—			(149,429		)	—			(139,172		)
Change in fair value of interest rate swap agreements	2,388			—			—			—			2,388
Equity in Other Comprehensive (Loss) Income of Subsidiaries	(146,018		)	(129,860		)	—			275,878			—
Total Other Comprehensive (Loss) Income	(133,373		)	(129,860		)	(149,429		)	275,878			(136,784		)
Comprehensive (Loss) Income	(41,612		)	9,805			(105,972		)	92,898			(44,881		)
Comprehensive (Loss) Income Attributable to Noncontrolling Interests	—			—			(3,274		)	—			(3,274		)
Comprehensive (Loss) Income Attributable to Iron Mountain Incorporated	$	(41,612	)	$	9,805		$	(102,698	)	$	92,898		$	(41,607	)

_____________________________________________________________

(1) Included within Interest Expense (Income), Net are intercompany management fees and royalty fees, which are eliminated in our consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Continued)

	Six Months Ended June 30, 2019
	Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage rental	$	—		$	814,900		$	517,362		$	—		$	1,332,262
Service	—			485,783			302,725			—			788,508
Intercompany revenues	—			2,312			9,463			(11,775		)	—
Total Revenues	—			1,302,995			829,550			(11,775		)	2,120,770
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	—			523,812			402,834			—			926,646
Intercompany cost of sales	—			9,463			2,312			(11,775		)	—
Selling, general and administrative	149			361,265			161,909			—			523,323
Depreciation and amortization	45			207,548			119,221			—			326,814
Loss (Gain) on disposal/write-down of property, plant and equipment, net	—			27,360			(35,163		)	—			(7,803		)
Total Operating Expenses	194			1,129,448			651,113			(11,775		)	1,768,980
Operating (Loss) Income	(194		)	173,547			178,437			—			351,790
Interest Expense (Income), Net(1)	99,226			12,697			95,827			—			207,750
Other Expense (Income), Net	541			5,014			(5,537		)	—			18
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes	(99,961		)	155,836			88,147			—			144,022
Provision (Benefit) for Income Taxes	—			2,454			18,745			—			21,199
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	(221,963		)	(65,552		)	—			287,515			—
Income (Loss) from Continuing Operations	122,002			218,934			69,402			(287,515		)	122,823
Income (Loss) from Discontinued Operations	—			120			(16		)	—			104
Net Income (Loss)	122,002			219,054			69,386			(287,515		)	122,927
Less: Net Income (Loss) Attributable to Noncontrolling Interests	—			—			925			—			925
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	122,002		$	219,054		$	68,461		$	(287,515	)	$	122,002
Net Income (Loss)	$	122,002		$	219,054		$	69,386		$	(287,515	)	$	122,927
Other Comprehensive Income (Loss):
Foreign Currency Translation Adjustments	1,861			—			10,539			—			12,400
Change in fair value of interest rate swap agreements	(7,605		)	—			—			—			(7,605		)
Equity in Other Comprehensive Income (Loss) of Subsidiaries	9,587			8,277			—			(17,864		)	—
Total Other Comprehensive Income (Loss)	3,843			8,277			10,539			(17,864		)	4,795
Comprehensive Income (Loss)	125,845			227,331			79,925			(305,379		)	127,722
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	—			—			1,877			—			1,877
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$	125,845		$	227,331		$	78,048		$	(305,379	)	$	125,845

_____________________________________________________________

(1) Included within Interest Expense (Income), Net are intercompany management fees and royalty fees, which are eliminated in our consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Continued)

	Six Months Ended June 30, 2018
	Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage rental	$	—		$	793,925		$	512,663		$	—		$	1,306,588
Service	—			474,633			322,060			—			796,693
Intercompany revenues	—			2,421			8,796			(11,217		)	—
Total Revenues	—			1,270,979			843,519			(11,217		)	2,103,281
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	—			497,523			402,662			—			900,185
Intercompany cost of sales	—			8,796			2,421			(11,217		)	—
Selling, general and administrative	79			353,087			176,229			—			529,395
Depreciation and amortization	65			198,616			118,117			—			316,798
(Gain) Loss on disposal/write-down of property, plant and equipment, net	—			(818		)	(858		)	—			(1,676		)
Total Operating Expenses	144			1,057,204			698,571			(11,217		)	1,744,702
Operating (Loss) Income	(144		)	213,775			144,948			—			358,579
Interest Expense (Income), Net(1)	100,254			1,497			98,147			—			199,898
Other Expense (Income), Net	1,610			8,135			(8,650		)	—			1,095
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes	(102,008		)	204,143			55,451			—			157,586
Provision (Benefit) for Income Taxes	—			5,797			20,137			—			25,934
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	(232,228		)	(28,981		)	—			261,209			—
Income (Loss) from Continuing Operations	130,220			227,327			35,314			(261,209		)	131,652
(Loss) Income from Discontinued Operations	—			(695		)	(127		)	—			(822		)
Net Income (Loss)	130,220			226,632			35,187			(261,209		)	130,830
Less: Net Income (Loss) Attributable to Noncontrolling Interests	—			—			610			—			610
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	130,220		$	226,632		$	34,577		$	(261,209	)	$	130,220
Net Income (Loss)	$	130,220		$	226,632		$	35,187		$	(261,209	)	$	130,830
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustment	4,622			—			(112,143		)	—			(107,521		)
Change in fair value of interest rate swap agreements	2,203			—			—			—			2,203
Equity in Other Comprehensive (Loss) Income of Subsidiaries	(110,286		)	(91,524		)	—			201,810			—
Total Other Comprehensive (Loss) Income	(103,461		)	(91,524		)	(112,143		)	201,810			(105,318		)
Comprehensive Income (Loss)	26,759			135,108			(76,956		)	(59,399		)	25,512
Comprehensive (Loss) Income Attributable to Noncontrolling Interests	—			—			(1,247		)	—			(1,247		)
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$	26,759		$	135,108		$	(75,709	)	$	(59,399	)	$	26,759

______________________________________________________

(1) Included within Interest Expense (Income), Net are intercompany management fees and royalty fees, which are eliminated in our consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six Months Ended June 30, 2019
	Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Cash Flows from Operating Activities:
Cash Flows from Operating Activities—Continuing Operations	$	(75,316	)	$	397,474		$	107,573		$	—		$	429,731
Cash Flows from Operating Activities—Discontinued Operations	—			—			—			—			—
Cash Flows from Operating Activities	(75,316		)	397,474			$	107,573		$	—		$	429,731
Cash Flows from Investing Activities:
Capital expenditures	—			(201,784		)	(165,347		)	—			(367,131		)
Cash paid for acquisitions, net of cash acquired	—			(9,508		)	(35,143		)	—			(44,651		)
Intercompany loans to subsidiaries	430,274			10,696			—			(440,970		)	—
Acquisitions of customer relationships, customer inducements and data center lease-based intangibles	—			(68,153		)	(22,409		)	—			(90,562		)
Investments in joint ventures (see Note 9)	—			(19,222		)	—			—			(19,222		)
Proceeds from sales of property and equipment and other, net	—			54			46,778			—			46,832
Cash Flows from Investing Activities—Continuing Operations	430,274			(287,917		)	(176,121		)	(440,970		)	(474,734		)
Cash Flows from Investing Activities—Discontinued Operations	—			2,564			2,497			—			5,061
Cash Flows from Investing Activities	430,274			(285,353		)	(173,624		)	(440,970		)	(469,673		)
Cash Flows from Financing Activities:
Repayment of revolving credit facility, term loan facilities and other debt	—			(837,712		)	(1,765,210		)	—			(2,602,922		)
Proceeds from revolving credit facility, term loan facilities and other debt	—			1,209,304			1,788,803			—			2,998,107
Debit (payments) balances under cash pools	—			(10,612		)	14,483			(3,871		)	—
Debt (repayment to) financing from and equity (distribution to) contribution from noncontrolling interests, net	—			—			(999		)	—			(999		)
Intercompany loans from parent	—			(410,198		)	(30,772		)	440,970			—
Parent cash dividends	(353,357		)	—			—			—			(353,357		)
Net (payments) proceeds associated with employee stock-based awards	(1,727		)	—			—			—			(1,727		)
Cash Flows from Financing Activities—Continuing Operations	(355,084		)	(49,218		)	6,305			437,099			39,102
Cash Flows from Financing Activities—Discontinued Operations	—			—			—			—			—
Cash Flows from Financing Activities	(355,084		)	(49,218		)	6,305			437,099			39,102
Effect of exchange rates on cash and cash equivalents	—			—			(2,649		)	—			(2,649		)
(Decrease) Increase in cash and cash equivalents	(126		)	62,903			(62,395		)	(3,871		)	(3,489		)
Cash and cash equivalents, including Restricted Cash, beginning of period	132			61,650			169,318			(65,615		)	165,485
Cash and cash equivalents, including Restricted Cash, end of period	$	6		$	124,553		$	106,923		$	(69,486	)	$	161,996

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

	Six Months Ended June 30, 2018
	Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Cash Flows from Operating Activities:
Cash Flows from Operating Activities—Continuing Operations	$	(117,979	)	$	409,167		$	102,618		$	—		$	393,806
Cash Flows from Operating Activities—Discontinued Operations	—			(477		)	—			—			(477		)
Cash Flows from Operating Activities	(117,979		)	408,690			102,618			—			393,329
Cash Flows from Investing Activities:
Capital expenditures	—			(142,737		)	(74,864		)	—			(217,601		)
Cash paid for acquisitions, net of cash acquired	—			(1,314,370		)	(352,499		)	—			(1,666,869		)
Intercompany loans to subsidiaries	370,423			19,092			—			(389,515		)	—
Acquisitions of customer relationships, customer inducements and data center lease-based intangibles	—			(24,922		)	(12,311		)	—			(37,233		)
Proceeds from sales of property and equipment and other, net	—			—			207			—			207
Cash Flows from Investing Activities—Continuing Operations	370,423			(1,462,937		)	(439,467		)	(389,515		)	(1,921,496		)
Cash Flows from Investing Activities—Discontinued Operations	—			—			—			—			—
Cash Flows from Investing Activities	370,423			(1,462,937		)	(439,467		)	(389,515		)	(1,921,496		)
Cash Flows from Financing Activities:
Repayment of revolving credit facility, term loan facilities and other debt	—			(3,657,315		)	(4,219,481		)	—			(7,876,796		)
Proceeds from revolving credit facility, term loan facilities and other debt	—			4,531,603			4,412,813			—			8,944,416
Debit (payments) balances under cash pools	—			(7,657		)	2,850			4,807			—
Debt (repayment to) financing from and equity (distribution to) contribution from noncontrolling interests, net	—			—			(1,079		)	—			(1,079		)
Intercompany loans from parent	—			(384,323		)	(5,192		)	389,515			—
Parent cash dividends	(337,052		)	—			—			—			(337,052		)
Net (payments) proceeds associated with employee stock-based awards	(2,259		)	—			—			—			(2,259		)
Net proceeds associated with the Over-Allotment Option exercise	76,192			—			—			—			76,192
Net proceeds associated with the At the Market (ATM) Program	8,716			—			—			—			8,716
Payment of debt financing and stock issuance costs	(412		)	(12,322		)	(651		)	—			(13,385		)
Cash Flows from Financing Activities—Continuing Operations	(254,815		)	469,986			189,260			394,322			798,753
Cash Flows from Financing Activities—Discontinued Operations	—			—			—			—			—
Cash Flows from Financing Activities	(254,815		)	469,986			189,260			394,322			798,753
Effect of exchange rates on cash and cash equivalents	—			—			(8,093		)	—			(8,093		)
(Decrease) Increase in cash and cash equivalents	(2,371		)	(584,261		)	(155,682		)	4,807			(737,507		)
Cash and cash equivalents, including Restricted Cash, beginning of period	2,433			634,317			383,675			(94,726		)	925,699
Cash and cash equivalents, including Restricted Cash, end of period	$	62		$	50,056		$	227,993		$	(89,919	)	$	188,192

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Segment Information

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Segment Information

Our six reportable operating segments as of December 31, 2018 are described in Note 9 to Notes to Consolidated Financial Statements included in our Annual Report and are as follows:

• North American Records and Information Management Business

• North American Data Management Business

• Western European Business

• Other International Business

• Global Data Center Business

• Corporate and Other Business

There have been no changes made to our reportable operating segments since December 31, 2018, other than the impact of the Consumer Storage Transaction (as defined in Note 9). Prior to the Consumer Storage Transaction, our consumer storage business was a component of our Corporate and Other Business Segment. The previously reported segment information has been restated to conform to the current presentation and reflects the changes to our reportable operating segments that occurred in fourth quarter of 2018 as described in Note 9 to Notes to Consolidated Financial Statements included in our Annual Report. The operations associated with acquisitions completed during the first six months of 2019 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 is as follows:

	North American Records and Information Management Business		North American Data Management Business		Western European Business		Other International Business		Global Data Center Business		Corporate and Other Business			Total Consolidated
For the Three Months Ended June 30, 2019
Total Revenues	$	539,273	$	96,415	$	127,327	$	199,823	$	62,291	$	41,778		$	1,066,907
Storage Rental	313,355		66,750		78,554		128,898		60,582		21,149			669,288
Service	225,918		29,665		48,773		70,925		1,709		20,629			397,619
Depreciation and Amortization	62,691		10,100		14,328		30,760		32,671		13,781			164,331
Depreciation	46,655		7,818		10,476		17,833		19,027		11,913			113,722
Amortization	16,036		2,282		3,852		12,927		13,644		1,868			50,609
Adjusted EBITDA	245,585		53,068		44,163		58,749		27,641		(78,264		)	350,942
Expenditures for Segment Assets	46,545		5,254		24,334		18,829		102,477		12,805			210,244
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	28,596		5,254		22,724		11,955		101,032		12,805			182,366
Cash Paid for Acquisitions, Net of Cash Acquired	—		—		366		4,862		—		—			5,228
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs and third-party commissions	17,949		—		1,244		2,012		1,445		—			22,650
For the Three Months Ended June 30, 2018
Total Revenues	$	539,080	$	100,031	$	133,440	$	207,527	$	54,895	$	25,850		$	1,060,823
Storage Rental	305,895		68,808		82,439		129,611		51,945		16,741			655,439
Service	233,185		31,223		51,001		77,916		2,950		9,109			405,384
Depreciation and Amortization	60,970		9,538		17,500		30,364		22,503		15,345			156,220
Depreciation	48,252		7,217		11,821		18,199		13,120		12,892			111,501
Amortization	12,718		2,321		5,679		12,165		9,383		2,453			44,719
Adjusted EBITDA	244,861		55,280		46,594		60,452		24,901		(64,533		)	367,555
Expenditures for Segment Assets	41,364		3,643		27,559		30,287		265,173		11,052			379,078
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	25,122		3,643		25,096		13,921		43,162		11,052			121,996
Cash Paid for Acquisitions, Net of Cash Acquired	—		—		—		16,188		221,707		—			237,895
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs	16,242		—		2,463		178		304		—			19,187

	North American Records and Information Management Business		North American Data Management Business		Western European Business		Other International Business		Global Data Center Business		Corporate and Other Business			Total Consolidated
As of and for the Six Months Ended June 30, 2019
Total Revenues	$	1,066,653	$	193,162	$	256,080	$	400,779	$	123,827	$	80,269		$	2,120,770
Storage Rental	620,341		133,322		159,249		258,371		120,300		40,679			1,332,262
Service	446,312		59,840		96,831		142,408		3,527		39,590			788,508
Depreciation and Amortization	122,693		20,302		29,585		61,359		64,303		28,572			326,814
Depreciation	92,407		15,831		21,423		36,051		38,040		24,581			228,333
Amortization	30,286		4,471		8,162		25,308		26,263		3,991			98,481
Adjusted EBITDA	469,268		103,620		83,372		116,873		53,652		(151,337		)	675,448
Total Assets (1)	5,840,023		877,777		1,406,937		2,703,347		2,330,535		562,363			13,720,982
Expenditures for Segment Assets	102,810		10,886		54,435		50,083		256,182		27,948			502,344
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	57,284		10,886		24,840		27,104		222,589		24,428			367,131
Cash Paid for Acquisitions, Net of Cash Acquired	9,876		—		11,850		19,405		—		3,520			44,651
Acquisitions of Customer Relationships and Customer Inducements and Contract Fulfillment Costs and third-party commissions	35,650		—		17,745		3,574		33,593		—			90,562
As of and for the Six Months Ended June 30, 2018
Total Revenues	$	1,065,923	$	199,995	$	267,515	$	418,294	$	101,498	$	50,056		$	2,103,281
Storage Rental	610,714		138,054		166,391		261,358		97,440		32,631			1,306,588
Service	455,209		61,941		101,124		156,936		4,058		17,425			796,693
Depreciation and Amortization	123,722		19,642		35,056		62,237		44,771		31,370			316,798
Depreciation	97,390		15,240		24,579		37,263		24,500		25,961			224,933
Amortization	26,332		4,402		10,477		24,974		20,271		5,409			91,865
Adjusted EBITDA	470,599		109,132		90,560		121,199		45,691		(134,051		)	703,130
Total Assets (1)	5,010,186		829,682		1,344,699		2,247,071		1,909,088		476,433			11,817,159
Expenditures for Segment Assets	84,545		10,496		35,039		62,447		1,703,185		25,991			1,921,703
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	54,992		10,496		31,143		39,063		56,273		25,634			217,601
Cash Paid for Acquisitions, Net of Cash Acquired	1,551		—		—		19,396		1,645,922		—			1,666,869
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs	28,002		—		3,896		3,988		990		357			37,233

______________________________________________________________

(1) Excludes all intercompany receivables or payables and investment in subsidiary balances. Total assets as of June 30, 2019 reflects the adoption of ASU 2016-02.

The accounting policies of the reportable operating segments are the same as those described in Note 2 and in Note 2 to Notes to Consolidated Financial Statements included in our Annual Report. Adjusted EBITDA for each segment is defined as income (loss) from continuing operations before interest expense, net, provision (benefit) for income taxes, depreciation and amortization, and also excludes certain items that we believe are not indicative of our core operating results, specifically: (i) (gain) loss on disposal/write-down of property, plant and equipment, net (including real estate); (ii) intangible impairments; (iii) other expense (income), net (which includes foreign currency transaction (gains) losses, net); and (iv) Significant Acquisition Costs (as defined below). Internally, we use Adjusted EBITDA as the basis for evaluating the performance of, and allocating resources to, our operating segments.

A reconciliation of Adjusted EBITDA to income (loss) from continuing operations on a consolidated basis for the three and six months ended June 30, 2019 and 2018 is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Adjusted EBITDA	$	350,942		$	367,555		$	675,448		$	703,130
(Add)/Deduct:
Provision (Benefit) for Income Taxes	10,646			26,057			21,199			25,934
Other (Income) Expense, Net	(15,192		)	(19,056		)	18			1,095
Interest Expense, Net	105,314			102,196			207,750			199,898
(Gain) loss on disposal/write-down of property, plant and equipment, net	(8,405		)	(546		)	(7,803		)	(1,676		)
Depreciation and Amortization	164,331			156,220			326,814			316,798
Significant Acquisition Costs(1)	1,901			10,421			4,647			29,429
Income (Loss) from Continuing Operations	$	92,347		$	92,263		$	122,823		$	131,652

_______________________________________________________________________________

(1) As defined in Note 9 to Notes to Consolidated Financial Statements included in our Annual Report.

Information as to our revenues by product and service lines by segment for the three and six months ended June 30, 2019 and 2018 are as follows:

	North American Records and Information Management Business		North American Data Management Business		Western European Business		Other International Business		Global Data Center Business		Corporate and Other Business		Total Consolidated
For the Three Months Ended June 30, 2019
Records Management(1)	$	442,785	$	—	$	109,369	$	172,433	$	—	$	26,195	$	750,782
Data Management(1)	—		93,152		16,908		18,787		—		15,583		144,430
Information Destruction(1)(2)	96,488		3,263		1,050		8,603		—		—		109,404
Data Center	—		—		—		—		62,291		—		62,291
Total Revenues	$	539,273	$	96,415	$	127,327	$	199,823	$	62,291	$	41,778	$	1,066,907
For the Three Months Ended June 30, 2018
Records Management(1)	$	441,401	$	—	$	113,925	$	179,194	$	—	$	11,801	$	746,321
Data Management(1)	—		97,768		19,393		19,227		—		14,049		150,437
Information Destruction(1)(2)	97,679		2,263		122		9,106		—		—		109,170
Data Center	—		—		—		—		54,895		—		54,895
Total Revenues	$	539,080	$	100,031	$	133,440	$	207,527	$	54,895	$	25,850	$	1,060,823
For the Six Months Ended June 30, 2019
Records Management(1)	$	870,152	$	—	$	218,076	$	345,410	$	—	$	50,540	$	1,484,178
Data Management(1)	—		187,141		36,794		38,014		—		29,729		291,678
Information Destruction(1)(2)	196,501		6,021		1,210		17,355		—		—		221,087
Data Center	—		—		—		—		123,827		—		123,827
Total Revenues	$	1,066,653	$	193,162	$	256,080	$	400,779	$	123,827	$	80,269	$	2,120,770
For the Six Months Ended June 30, 2018
Records Management(1)	$	876,403	$	—	$	227,684	$	360,524	$	—	$	22,205	$	1,486,816
Data Management(1)	—		195,362		39,612		39,705		—		27,851		302,530
Information Destruction(1)(2)	189,520		4,633		219		18,065		—		—		212,437
Data Center	—		—		—		—		101,498		—		101,498
Total Revenues	$	1,065,923	$	199,995	$	267,515	$	418,294	$	101,498	$	50,056	$	2,103,281

____________________________________________________________________________

(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.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

We are involved in litigation from time to time in the ordinary course of business. A portion of the defense and/or settlement costs associated with such litigation is covered by various commercial liability insurance policies purchased by us and, in limited cases, indemnification from third parties. Our policy is to establish reserves for loss contingencies when the losses are both probable and reasonably able to be estimated. We record legal costs associated with loss contingencies as expenses in the period in which they are incurred. There have been no material updates or changes to the matters disclosed in Note 10 to Notes to Consolidated Financial Statements included in our Annual Report. We believe that the resolution of the matters disclosed in Note 10 to Notes to Consolidated Financial Statements included in our Annual Report will not have a material impact on our consolidated financial condition, results of operations or cash flows.

We have estimated a reasonably possible range for all loss contingencies, including those disclosed in Note 10 to Notes to Consolidated Financial Statements included in our Annual Report and the item below, 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 $17,000 over the next several years, of which certain amounts would be covered by insurance or indemnity arrangements.

In June 2019, we received a notification of assessment from tax and customs authorities in the Netherlands related to a VAT liability of approximately 16,800 Euros. The notification of assessment is related to our customs clearing and logistics business in the Netherlands, which we acquired through the acquisition of Bonded Services of America, Inc. and Bonded Services Acquisition, Ltd. (collectively, “Bonded”) in September 2017. As part of the import and declaration services we provide in the Netherlands, we file import declaration forms to the customs authorities for all goods imported in a particular month and calculate the amount of VAT that is due on the goods being imported. In certain instances, we remit import VAT to the Dutch tax authorities and subsequently are reimbursed by the entity the goods are being imported on behalf of. In other instances, however, the payment of VAT may be deferred and paid upon the sale of the goods to the ultimate end customer in cases where the entity receiving the goods holds a valid license allowing for the deferment of VAT (referred to as an Article 23 license). In the notification of assessment, the Dutch tax authorities have asserted that (i) we inappropriately deferred VAT for goods imported under Article 23 for certain of our customers between March 2017 and August 2018 and (ii) we are liable for the amount of VAT related to those goods for which VAT was inappropriately deferred. We have responded to the notification of assessment and have requested additional information regarding the matter from the Dutch tax authorities.

We believe that the amount, if assessed, would be subject to interest and potential penalties. We have established a reserve for this matter based upon our estimate of the amount of loss that is both probable and estimable. We are in the process of exploring potential recoveries (including insurance recoveries and/or claims against other third parties) against any losses we incur associated with this matter.

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Stockholders' Equity Matters

6 Months Ended

Jun. 30, 2019

Equity [Abstract]

Stockholders' Equity Matters

Stockholders' Equity Matters

Our board of directors has adopted a dividend policy under which we have paid, and in the future intend to pay, quarterly cash dividends on our common stock. The amount and timing of future dividends will continue to be subject to the approval of our board of directors, in its sole discretion, and to applicable legal requirements.

In fiscal year 2018 and the first six months of 2019, our board of directors declared the following dividends:

Declaration Date	Dividend Per Share		Record Date	Total Amount		Payment Date
February 14, 2018	$	0.5875	March 15, 2018	$	167,969	April 2, 2018
May 24, 2018	0.5875		June 15, 2018	168,078		July 2, 2018
July 24, 2018	0.5875		September 17, 2018	168,148		October 2, 2018
October 25, 2018	0.6110		December 17, 2018	174,935		January 3, 2019
February 7, 2019	0.6110		March 15, 2019	175,242		April 2, 2019
May 22, 2019	0.6110		June 17, 2019	175,389		July 2, 2019

At The Market (ATM) Equity Program

As described in greater detail in Note 12 to Notes to Consolidated Financial Statements included in our Annual Report, we entered into a distribution agreement with a syndicate of 10 banks (the “Agents”) pursuant to which we may sell, from time to time, up to an aggregate sales price of $500,000 of our common stock through the Agents (the “At The Market (ATM) Equity Program”). There were no shares of common stock sold under the At The Market (ATM) Equity Program during the six months ended June 30, 2019. As of June 30, 2019, the remaining aggregate sale price of shares of our common stock available for distribution under the At The Market (ATM) Equity Program was approximately $431,200.

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Divestments

6 Months Ended

Jun. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

Divestments

On March 19, 2019, we contributed our customer contracts and certain intellectual property and other assets used by us to operate our consumer storage business in the United States and Canada (the "IM Consumer Storage Assets") and approximately $20,000 in cash (gross of certain transaction expenses) (the "Cash Contribution") to a joint venture entity, Makespace LLC (the "Makespace JV"), established by us and Makespace Labs, Inc. ("Makespace"), a consumer storage services provider (the "Consumer Storage Transaction"). Upon the closing of the Consumer Storage Transaction on March 19, 2019, the Makespace JV owned (i) the IM Consumer Storage Assets, (ii) the Cash Contribution and (iii) the customer contracts, intellectual property and certain other assets used by Makespace to operate its consumer storage business in the United States. As part of the Consumer Storage Transaction, we received an equity interest of approximately 34% in the Makespace JV (the "Makespace Investment"). In connection with the Consumer Storage Transaction and the Makespace Investment, we also entered into a storage and service agreement with the Makespace JV to provide certain storage and related services to the Makespace JV (see Note 11).

We have concluded that the divestment of the IM Consumer Storage Assets in the Consumer Storage Transaction does not meet the criteria to be reported as a discontinued operation 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 income (loss) from continuing operations in our Condensed Consolidated Statements of Operations for the six months ended June 30, 2019 through the closing date of the Consumer Storage Transaction and for the three and six months ended June 30, 2018 and the cash flows associated with this business are presented as a component of cash flows from continuing operations in our Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2019 through the closing date of the Consumer Storage Transaction and for the six months ended June 30, 2018.

As a result of the Consumer Storage Transaction, we recorded a gain on sale of approximately $4,200 to Other expense (income), net, in the first quarter of 2019, representing the excess of the fair value of the consideration received over the sum of (i) the carrying value of our consumer storage operations and (ii) the Cash Contribution. At the closing date of the Consumer Storage Transaction, the fair value of the Makespace Investment was approximately $27,500. We account for the Makespace Investment as an equity method investment. The carrying value of the Makespace Investment at June 30, 2019 is $23,896, and is presented as a component of Other within Other assets, net in our Condensed Consolidated Balance Sheet.

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Significant Acquisition Costs

6 Months Ended

Jun. 30, 2019

Business Combinations [Abstract]

Significant Acquisition Costs

Significant Acquisition Costs included in the accompanying Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2019 and 2018 are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Cost of sales (excluding depreciation and amortization)	$	1,293	$	1,827	$	2,191	$	2,123
Selling, general and administrative expenses	608		8,594		2,456		27,306
Total Significant Acquisition Costs	$	1,901	$	10,421	$	4,647	$	29,429

Significant Acquisition Costs included in the accompanying Condensed Consolidated Statements of Operations by segment for the three and six months ended June 30, 2019 and 2018 are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
North American Records and Information Management Business	$	—	$	3,017	$	378	$	3,601
North American Data Management Business	—		351		—		351
Western European Business	81		1,427		81		3,579
Other International Business	951		896		1,453		1,433
Global Data Center Business	124		1,159		267		11,340
Corporate and Other Business	745		3,571		2,468		9,125
Total Significant Acquisition Costs	$	1,901	$	10,421	$	4,647	$	29,429

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Related Party Transactions

6 Months Ended

Jun. 30, 2019

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

In connection with the Consumer Storage Transaction and the Makespace Investment (both as described more fully in Note 9), we also 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 North American Records and Information Management Business segment. We recognized approximately $7,400 and $7,900 of revenue, respectively, for the three and six months ended June 30, 2019, associated with the Makespace Agreement.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Cash, Cash Equivalents and Restricted Cash

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.

Goodwill and Other Intangible Assets and Liabilities

Goodwill and Other Intangible Assets and Liabilities

Goodwill

Since December 31, 2018, there have been no changes to our accounting polices related to the accounting for goodwill. As of June 30, 2019 and December 31, 2018, no factors were identified that would alter our October 1, 2018 goodwill impairment analysis.

Our reporting units as of December 31, 2018 are described in detail in Note 2.h. to Notes to Consolidated Financial Statements included in our Annual Report. On March 19, 2019, we divested the business included in our former Consumer Storage reporting unit, which had no goodwill associated with it at December 31, 2018 or at the date of the divestment. See Note 9 for additional information.

The goodwill associated with acquisitions completed during the first six months of 2019 (which are described in Note 3) has been incorporated into our reporting units as they existed as of December 31, 2018.

Other finite-lived intangible assets, including trade names, noncompetition agreements and trademarks, are capitalized and amortized and are included in depreciation and amortization in the accompanying Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2019 and 2018

Finite-lived Intangible Assets and Liabilities

Finite-lived intangible assets and liabilities are primarily comprised of customer relationship intangible assets, customer inducements and data center intangible assets and liabilities (which include data center in-place lease intangible assets, data center tenant relationship intangible assets, data center above-market in-place lease intangible assets and data center below-market in-place lease intangible assets). Since December 31, 2018, there have been no changes to our accounting policies related to the accounting for any of our finite-lived intangible assets and liabilities as disclosed in Note 2.i. to Notes to Consolidated Financial Statements included in our Annual Report.

Revenues

Data Center Lessor Considerations

Our data center business features storage rental provided to customers at contractually specified rates over a fixed contractual period. Prior to January 1, 2019, our data center revenue contracts were accounted for in accordance with Accounting Standards Codification (“ASC”) No. 840, Leases ("ASC 840"). On January 1, 2019, we adopted ASU 2016-02, as described in more detail in Note 2.d. Beginning on January 1, 2019, our data center revenue contracts will be accounted for in accordance with ASU 2016-02. ASU 2016-02 provides a practical expedient which allows lessors to account for nonlease components (such as power and connectivity, in the case of our data center business) with the related lease component if both the timing and pattern of transfer are the same for nonlease components and the lease component, and the lease component would be classified as an operating lease. The single combined component is accounted for under ASU 2016-02 if the lease component is the predominant component and is accounted for under ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), if the nonlease components are the predominant components.

Leases

Leases

We lease facilities for certain warehouses, data centers and office space. We also have land leases, including those on which certain facilities are located. The majority of our leased facilities are classified as operating leases that, on average, have initial lease terms of five to 10 years, with one or more lease renewal options to extend the lease term. Our lease renewal option terms generally range from one to five years. The exercise of the lease renewal option is at our sole discretion and may contain fixed rent, fair market value based rent or Consumer Price Index rent escalation clauses. We include option periods in the lease term when our failure to renew the lease would result in an economic disincentive, thereby making it reasonably certain that we will renew the lease. We recognize straight line rental expense over the life of the lease and any fair market value or Consumer Price Index rent escalations are recognized as variable lease expense in the period in which the obligation is incurred. In addition, we lease certain vehicles and equipment. Vehicle and equipment leases have lease terms ranging from one to seven years.

In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases (Topic 842) which requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases, both operating and financing (formerly referred to as capital leases under ASC 840). ASU 2016-02 requires certain qualitative and quantitative disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases.

We adopted ASU 2016-02 on January 1, 2019 on a modified retrospective basis under which we recognized and measured leases existing at, or entered into after, the beginning of the period of adoption. Therefore, we applied ASC 840 to all earlier comparative periods (prior to the adoption of ASU 2016-02), including disclosures, and recognized the effects of applying ASU 2016-02 as a cumulative-effect adjustment to retained earnings as of January 1, 2019, the effective date of the standard. As such, the comparative Condensed Consolidated Balance Sheet as of December 31, 2018 has not been restated to reflect the adoption of ASU 2016-02. Accordingly, the majority of the amount presented as deferred rent liabilities on our Consolidated Balance Sheet as of December 31, 2018 is now included in the calculation of operating lease right-of-use assets and any remaining amounts are now classified within other liability line items on our Condensed Consolidated Balance Sheet as of June 30, 2019. The transition guidance associated with ASU 2016-02 also permitted certain practical expedients. We elected the "package of 3" practical expedients permitted under the transition guidance which, among other things, allowed us to carryforward our historical lease classifications. We also adopted an accounting policy which provides that leases with an initial term of 12 months or less will not be included within the lease right-of-use assets and lease liabilities recognized on our Condensed Consolidated Balance Sheets after the adoption of ASU 2016-02. We will continue to recognize the lease payments for those leases with an initial term of 12 months or less in the Condensed Consolidated Statements of Operations on a straight-line basis over the lease term.

The lease right-of-use assets and related lease liabilities are classified as either operating or financing. Lease right-of-use assets are calculated as the net present value of future payments plus any capitalized initial direct costs less any tenant improvements or lease incentives. Lease liabilities are calculated as the net present value of future payments. In calculating the present value of the lease payments, we will utilize the rate stated within the lease (in the limited circumstances when such rate is available) or, if no rate is explicitly stated, we have elected to utilize a rate that reflects our securitized incremental borrowing rate by geography for the lease term. In July 2018, the FASB issued ASU 2018-11, Leases - Targeted Improvements ("ASU 2018-11"). ASU 2018-11 provides a practical expedient which allows lessees to account for nonlease components (which include common area maintenance, taxes, and insurance) with the related lease component. Any variable nonlease components are not included within the lease right-of-use asset and lease liability on the Condensed Consolidated Balance Sheets, and instead, are reflected as an expense in the period incurred. We have elected to take this practical expedient upon adoption of ASU 2016-02.

At January 1, 2019, we recognized the cumulative effect of initially applying ASU 2016-02 as an adjustment to the opening balance of (Distributions in excess of earnings) Earnings in excess of distributions, resulting in an increase of approximately $5,800 to stockholders' equity due to certain build to suit leases that were accounted for as financing leases under ASC 840, Leases, but are accounted for as operating leases under ASU 2016-02 at January 1, 2019.

Stock-Based Compensation

Stock-Based CompensationWe record stock-based compensation expense, utilizing the straight-line method, for the cost of stock options, restricted stock units ("RSUs"), performance units ("PUs") and shares of stock issued under our employee stock purchase plan (together, "Employee Stock-Based Awards").

For our Employee Stock-Based Awards made on or after February 20, 2019, we have included the following retirement provision: Upon an employee’s retirement on or after attaining age 58, if the sum of (i) the award recipient’s age at retirement and (ii) the award recipient’s years of service with the company totals at least 70, the award recipient is entitled to continued vesting of any outstanding Employee Stock-Based Awards which include the 2019 Retirement Criteria subsequent to their retirement, provided that, for awards granted in the year of retirement, their retirement occurs on or after July 1st (the “2019 Retirement Criteria”). Accordingly, (i) grants of Employee Stock-Based Awards to an employee who has met the 2019 Retirement Criteria on or before the date of grant, or will meet the Retirement Criteria before July 1^st of the year of the grant, will be expensed between the date of grant and July 1^st of the grant year and (ii) grants of Employee Stock-Based Awards to employees who will meet the 2019 Retirement Criteria during the award’s normal vesting period will be expensed between the date of grant and the date upon which the award recipient meets the 2019 Retirement Criteria. Stock options and RSUs granted to recipients who meet the 2019 Retirement Criteria will continue vesting on the original vesting schedule, and the stock options will remain exercisable up to three years after retirement, or the original expiration date of the stock options, if earlier. PUs granted to recipients who meet the 2019 Retirement Criteria will continue to vest and be delivered in accordance with the original vesting schedule of the applicable PU award and remain subject to the same performance conditions.

Income (Loss) Per Share-Basic and Diluted

Income (Loss) Per Share—Basic and Diluted

Basic income (loss) per common share is calculated by dividing income (loss) by the weighted average number of common shares outstanding. The calculation of diluted income (loss) per share is consistent with that of basic income (loss) per share, but gives effect to all potential common shares (that is, securities such as stock options, RSUs or PUs) that were outstanding during the period, unless the effect is antidilutive.

Income Taxes

We provide for income taxes during interim periods based on our estimate of the effective tax rate for the year. Our estimate of the effective tax rates for the years ending December 31, 2019 and 2018 reflect the impact of the U.S. tax reform legislation, commonly referred to as the Tax Cuts and Jobs Act (the “Tax Reform Legislation”). See Note 7 to Notes to Consolidated Financial Statements included in our Annual Report for additional information regarding the impact the Tax Reform Legislation had on us. Discrete items and changes in our estimate of the annual effective tax rate are recorded in the period they occur. Our effective tax rate is subject to variability in the future due to, among other items: (1) changes in the mix of income between our qualified REIT subsidiaries ("QRSs") and our domestic taxable REIT subsidiaries ("TRSs"), as well as among the jurisdictions in which we operate; (2) tax law changes; (3) volatility in foreign exchange gains and losses; (4) the timing of the establishment and reversal of tax reserves; and (5) our ability to utilize net operating losses that we generate.

Fair Value Measurements

Fair Value Measurements

Our financial assets or liabilities that are carried at fair value are required to be measured using inputs from the three levels of the fair value hierarchy. A financial asset or liability's classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The three levels of the fair value hierarchy are as follows:

Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date.

Level 2—Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

Level 3—Unobservable inputs that reflect our assumptions about the assumptions that market participants would use in pricing the asset or liability.

New Accounting Pronouncements

New Accounting Pronouncements

In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) ("ASU 2018-15"). ASU 2018-15 aligns the accounting for costs incurred to implement a cloud computing arrangement that is a service arrangement with the guidance on capitalizing costs associated with developing or obtaining internal-use software. We adopted ASU 2018-15 on January 1, 2019. ASU 2018-15 did not have a material impact on our consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02. We adopted ASU 2016-02 on January 1, 2019 on a modified retrospective basis. See Note 2.d. for information regarding the impact of the adoption of ASU 2016-02 on our consolidated financial statements.Correction in PresentationSubsequent to our conversion to a REIT, we have historically classified gains on sale of real estate, net of tax, as a separate line on our consolidated statements of operations and excluded such amounts from our reported operating income. We presented such amounts net of tax as these gains were presented below the provision (benefit) for income taxes on our consolidated statements of operations. Commencing with the first quarter of 2019, we now present gains on sale of real estate as a component of operating income in the line item (gain) loss on disposal/write-down of property, plant and equipment, net. See Note 2.j. for details of the (gain) loss on disposal/write-down of property, plant and equipment, net recognized during the three and six months ended June 30, 2019. Such amounts are presented gross of tax with any tax impact presented within provision (benefit) for income taxes. All prior periods will be conformed to this presentation. We did not recognize any gains on sale of real estate during the three and six months ended June 30, 2018. During the third and fourth quarter of 2018, we recognized a total of approximately $55,000 of gains on sale of real estate, net of tax.

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Schedule of changes in the carrying value of goodwill attributable to each reportable operating segment

The changes in the carrying value of goodwill attributable to each reportable operating segment for the six months ended June 30, 2019 are as follows:

	North American Records and Information Management Business		North American Data Management Business		Western European Business			Other International Business		Global Data Center Business		Corporate and Other Business			Total Consolidated
Goodwill balance, net of accumulated amortization as of December 31, 2018	$	2,251,795	$	493,491	$	381,806		$	818,223	$	425,956	$	69,759		$	4,441,030
Deductible goodwill acquired during the year	5,501		—		—			2,758		—		—			8,259
Non-deductible goodwill acquired during the year	—		—		5,011			4,387		—		1,904			11,302
Fair value and other adjustments(1)	55		—		959			2,842		258		(422		)	3,692
Currency effects	7,704		2,093		(2,851		)	1,907		193		95			9,141
Goodwill balance, net accumulated amortization as of June 30, 2019	$	2,265,055	$	495,584	$	384,925		$	830,117	$	426,407	$	71,336		$	4,473,424
Accumulated Goodwill Impairment Balance as of December 31, 2018	$	85,909	$	—	$	46,500		$	—	$	—	$	3,011		$	135,420
Accumulated Goodwill Impairment Balance as of June 30, 2019	$	85,909	$	—	$	46,500		$	—	$	—	$	3,011		$	135,420

_______________________________________________________________________________

(1) Total fair value and other adjustments primarily include $3,755 in net adjustments related to property, plant and equipment, customer relationships and data center lease-based intangible assets and deferred income taxes and other liabilities offset by $63 of cash received related to certain acquisitions completed in 2018.

Components of amortizable intangible assets

The other finite-lived intangible assets as of June 30, 2019 and December 31, 2018 are as follows:

	June 30, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Other finite-lived intangible assets (included in Other, a component of other assets, net)	$	19,960	$	(16,482	)	$	3,478	$	20,310	$	(14,798	)	$	5,512

The gross carrying amount and accumulated amortization of our finite-lived intangible assets as of June 30, 2019 and December 31, 2018 are as follows:

	June 30, 2019							December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Assets:
Customer relationship intangible assets	$	1,766,769	$	(511,672	)	$	1,255,097	$	1,718,919	$	(455,705	)	$	1,263,214
Customer inducements	52,542		(29,091		)	23,451		56,478		(34,181		)	22,297
Data center lease-based intangible assets(1)	266,263		(77,786		)	188,477		271,818		(50,807		)	221,011
Third-party commissions asset(2)	31,391		(1,874		)	29,517		30,071		(1,089		)	28,982
	$	2,116,965	$	(620,423	)	$	1,496,542	$	2,077,286	$	(541,782	)	$	1,535,504
Liabilities:
Data center below-market leases	$	12,765	$	(2,954	)	$	9,811	$	12,318	$	(1,642	)	$	10,676

_______________________________________________________________________________

(1) Includes data center in-place lease intangible assets, data center tenant relationship intangible assets and data center above-market in-place lease intangible assets.

(2) Third-party commissions asset is included in Other, a component of Other assets, net in the accompanying Condensed Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018. The third-party commissions asset is primarily comprised of additional payments associated with the execution of future customer contracts through the one-year anniversary of the acquisition of IODC, as described in Note 3.

Schedule of amortization expenses

Amortization expense associated with finite-lived intangible assets, revenue reduction associated with the amortization of customer inducements and net revenue reduction associated with the amortization of data center above-market leases and data center below-market leases for the three and six months ended June 30, 2019 and 2018 are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Amortization expense included in depreciation and amortization associated with:
Customer relationship and customer inducement intangible assets	$	28,283	$	28,813	$	56,164	$	57,619
Data center in-place leases and tenant relationships	11,372		7,563		23,981		18,401
Third-party commissions asset and other finite-lived intangible assets	2,184		1,659		2,941		2,844
Revenue reduction associated with amortization of:
Customer inducements	$	2,598	$	2,968	$	5,338	$	5,553
Data center above-market leases and data center below-market leases	935		1,293		1,840		2,372

Schedule of amortization expense associated with commissions asset and Intake Costs

The costs of the initial intake of customer records into physical storage ("Intake Costs") and capitalized commissions asset (collectively, "Contract Fulfillment Costs") as of June 30, 2019 and December 31, 2018 are as follows:

		June 30, 2019							December 31, 2018
Description	Location in Balance Sheet	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Intake Costs asset	Other (within Other Assets, Net)	$	34,915	$	(19,398	)	$	15,517	$	39,748	$	(24,504	)	$	15,244
Capitalized commissions asset	Other (within Other Assets, Net)	48,564		(17,895		)	30,669		58,424		(34,637		)	23,787

Amortization expense associated with the Intake Costs asset and capitalized commissions asset for the three and six months ended June 30, 2019 and 2018 are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Intake Costs asset	$	2,835	$	2,891	$	5,514	$	5,621
Capitalized commissions asset	5,935		3,793		9,881		7,380

Schedule of deferred revenue liabilities

Deferred revenue liabilities are reflected as follows in our Condensed Consolidated Balance Sheets:

Description	Location in Balance Sheet	June 30, 2019		December 31, 2018
Deferred revenue - Current	Deferred revenue	$	268,779	$	264,823
Deferred revenue - Long-term	Other Long-term Liabilities	25,436		26,401

Operating and financing lease right-of-use assets and lease liabilities

Operating and financing lease right-of-use assets and lease liabilities as of June 30, 2019 and January 1, 2019 (date of adoption of ASU 2016-02) are as follows:

Description	Location in Balance Sheet	June 30, 2019		January 1, 2019 (Date of Adoption of ASU 2016-02)
Assets:
Operating lease right-of-use assets(1)	Operating lease right-of-use assets	$	1,793,807	$	1,825,721
Financing lease right-of-use assets, net of accumulated depreciation(2)	Property, plant and equipment, net	344,320		361,078
Total		$	2,138,127	$	2,186,799
Liabilities:
Current
Operating lease liabilities	Accrued expenses and other current liabilities	$	212,968	$	209,911
Financing lease liabilities	Current portion of long-term debt	50,116		50,437
Total current lease liabilities		263,084		260,348
Long-term
Operating lease liabilities	Long-term operating lease liabilities, net of current portion	1,655,477		1,685,771
Financing lease liabilities	Long-term Debt, net of current portion	331,233		350,263
Total long-term lease liabilities		1,986,710		2,036,034
Total		$	2,249,794	$	2,296,382

______________________________________________________________

(1) At June 30, 2019, these assets are comprised of approximately 98% real estate related assets (which include land, buildings and racking) and 2% non-real estate related assets (which include warehouse equipment, vehicles, furniture and fixtures and computer hardware and software).

(2) At June 30, 2019, these assets are comprised of approximately 62% real estate related assets and 38% non-real estate related assets.

Lease, cost

Supplemental cash flow information relating to our leases for the six months ended June 30, 2019 is as follows:

Cash paid for amounts included in measurement of lease liabilities:	Six Months Ended June 30, 2019
Operating cash flows used in operating leases	$	167,426
Financing cash flows used in financing leases	$	31,146
Non-cash items:
Operating lease modifications and reassessments	$	14,024
New operating leases (including acquisitions)	$	87,482
New financing leases, modifications and reassessments	$	13,662

Weighted average remaining lease terms and discount rates as of June 30, 2019 are as follows:

Remaining Lease Term:
Operating leases	11.0 Years
Financing leases	11.0 Years
Discount Rate:
Operating leases	7.1%
Financing leases	5.6%

The components of the lease expense for the three and six months ended June 30, 2019 are as follows:

Description	Location in Statement of Operations	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Operating lease cost(1)	Cost of sales and Selling, general and administrative	$	113,392	$	222,571
Financing lease cost:
Depreciation of financing lease right-of-use assets	Depreciation and amortization	$	14,942	$	31,271
Interest expense for financing lease liabilities	Interest expense, net	4,925		11,067
Total financing lease cost		$	19,867	$	42,338

______________________________________________________________

(1) Of the $113,392 incurred for the three months ended June 30, 2019, $110,441 is included within Cost of sales and $2,951 is included within Selling, general and administrative expenses. Of the $222,571 incurred for the six months ended June 30, 2019, $216,335 is included within Cost of sales and $6,236 is included within Selling, general and administrative expenses. Operating lease cost includes variable lease costs of $23,847 and $46,610 for the three and six months ended June 30, 2019, respectively.

Schedule of future minimum lease payments for capital leases

The estimated minimum future lease payments as of June 30, 2019, are as follows:

Year	Operating Leases(1)			Sublease Income			Financing Leases(1)
2019 (excluding the six months ended June 30, 2019)	$	171,378		$	(3,494	)	$	40,635
2020	321,670			(5,728		)	60,377
2021	295,696			(4,828		)	54,766
2022	271,552			(4,462		)	48,071
2023	246,252			(4,333		)	40,351
Thereafter	1,482,286			(10,185		)	296,260
Total minimum lease payments	2,788,834			$	(33,030	)	540,460
Less amounts representing interest or imputed interest	(920,389		)				(159,111		)
Present value of lease obligations	$	1,868,445					$	381,349

The estimated minimum future lease payments as of December 31, 2018 are as follows:

Year	Operating Leases(1)		Sublease Income			Financing Leases(1)(2)
2019	$	323,454	$	(7,525	)	$	80,513
2020	293,276		(7,200		)	71,335
2021	267,379		(7,063		)	61,269
2022	246,128		(6,694		)	52,832
2023	221,808		(6,409		)	44,722
Thereafter	1,287,807		(6,279		)	377,750
Total minimum lease payments	$	2,639,852	$	(41,170	)	688,421
Less amounts representing interest						(241,248		)
Present value of lease obligations						$	447,173

_______________________________________________________________________________

(1) Estimated minimum future lease payments exclude variable common area maintenance charges, insurance and taxes. Differences in estimated lease payments between June 30, 2019 and December 31, 2018 are primarily related to adjustments to account for certain build to suit leases that were accounted for as financing obligations under ASC 840 but are accounted for as operating leases under ASU 2016-02 and foreign currency exchange rate impacts.

(2)

Includes capital lease and financing obligations associated with build to suit lease transactions at December 31, 2018.

Finance lease, liability, maturity

The estimated minimum future lease payments as of June 30, 2019, are as follows:

Year	Operating Leases(1)			Sublease Income			Financing Leases(1)
2019 (excluding the six months ended June 30, 2019)	$	171,378		$	(3,494	)	$	40,635
2020	321,670			(5,728		)	60,377
2021	295,696			(4,828		)	54,766
2022	271,552			(4,462		)	48,071
2023	246,252			(4,333		)	40,351
Thereafter	1,482,286			(10,185		)	296,260
Total minimum lease payments	2,788,834			$	(33,030	)	540,460
Less amounts representing interest or imputed interest	(920,389		)				(159,111		)
Present value of lease obligations	$	1,868,445					$	381,349

The estimated minimum future lease payments as of December 31, 2018 are as follows:

Year	Operating Leases(1)		Sublease Income			Financing Leases(1)(2)
2019	$	323,454	$	(7,525	)	$	80,513
2020	293,276		(7,200		)	71,335
2021	267,379		(7,063		)	61,269
2022	246,128		(6,694		)	52,832
2023	221,808		(6,409		)	44,722
Thereafter	1,287,807		(6,279		)	377,750
Total minimum lease payments	$	2,639,852	$	(41,170	)	688,421
Less amounts representing interest						(241,248		)
Present value of lease obligations						$	447,173

_______________________________________________________________________________

(1) Estimated minimum future lease payments exclude variable common area maintenance charges, insurance and taxes. Differences in estimated lease payments between June 30, 2019 and December 31, 2018 are primarily related to adjustments to account for certain build to suit leases that were accounted for as financing obligations under ASC 840 but are accounted for as operating leases under ASU 2016-02 and foreign currency exchange rate impacts.

(2)

Includes capital lease and financing obligations associated with build to suit lease transactions at December 31, 2018.

Lessee, operating lease, liability, maturity

The estimated minimum future lease payments as of June 30, 2019, are as follows:

Year	Operating Leases(1)			Sublease Income			Financing Leases(1)
2019 (excluding the six months ended June 30, 2019)	$	171,378		$	(3,494	)	$	40,635
2020	321,670			(5,728		)	60,377
2021	295,696			(4,828		)	54,766
2022	271,552			(4,462		)	48,071
2023	246,252			(4,333		)	40,351
Thereafter	1,482,286			(10,185		)	296,260
Total minimum lease payments	2,788,834			$	(33,030	)	540,460
Less amounts representing interest or imputed interest	(920,389		)				(159,111		)
Present value of lease obligations	$	1,868,445					$	381,349

The estimated minimum future lease payments as of December 31, 2018 are as follows:

Year	Operating Leases(1)		Sublease Income			Financing Leases(1)(2)
2019	$	323,454	$	(7,525	)	$	80,513
2020	293,276		(7,200		)	71,335
2021	267,379		(7,063		)	61,269
2022	246,128		(6,694		)	52,832
2023	221,808		(6,409		)	44,722
Thereafter	1,287,807		(6,279		)	377,750
Total minimum lease payments	$	2,639,852	$	(41,170	)	688,421
Less amounts representing interest						(241,248		)
Present value of lease obligations						$	447,173

_______________________________________________________________________________

(1) Estimated minimum future lease payments exclude variable common area maintenance charges, insurance and taxes. Differences in estimated lease payments between June 30, 2019 and December 31, 2018 are primarily related to adjustments to account for certain build to suit leases that were accounted for as financing obligations under ASC 840 but are accounted for as operating leases under ASU 2016-02 and foreign currency exchange rate impacts.

(2)

Includes capital lease and financing obligations associated with build to suit lease transactions at December 31, 2018.

Lessor, operating lease, maturity

The future minimum lease payments we expect to receive under non-cancellable data center operating leases, for which we are the lessor, excluding month to month leases, for the next five years are as follows:

	Future minimum lease payments
2019 (excluding the six months ended June 30, 2019)	$	103,016
2020	155,581
2021	111,945
2022	79,763
2023	61,684

Summary of stock option activity

A summary of stock option activity for the six months ended June 30, 2019 is as follows:

	Stock Options
Outstanding at December 31, 2018	4,271,834
Granted	920,706
Exercised	(194,480	)
Forfeited	(12,525	)
Expired	(15,647	)
Outstanding at June 30, 2019	4,969,888
Options exercisable at June 30, 2019	3,160,175
Options expected to vest	1,704,441

Summary of restricted stock and RSU activity

The fair value of RSUs vested during the three and six months ended June 30, 2019 and 2018 is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Fair value of RSUs vested	$	2,375	$	676	$	17,710	$	16,006

A summary of RSU activity for the six months ended June 30, 2019 is as follows:

	RSUs
Non-vested at December 31, 2018	1,196,566
Granted	731,801
Vested	(527,239	)
Forfeited	(55,070	)
Non-vested at June 30, 2019	1,346,058

Schedule of performance units

The fair value of earned PUs that vested during the three and six months ended June 30, 2019 and 2018 is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Fair value of earned PUs that vested	$	—	$	—	$	6,503	$	3,033

Summary of Performance Unit (PU) activity

A summary of PU activity for the six months ended June 30, 2019 is as follows:

	Original PU Awards		PU Adjustment(1)		Total PU Awards
Non-vested at December 31, 2018	967,049		(299,948	)	667,101
Granted	380,856		—		380,856
Vested	(169,523	)	—		(169,523	)
Forfeited/Performance or Market Conditions Not Achieved	(11,093	)	(14,850	)	(25,943	)
Non-vested at June 30, 2019	1,167,289		(314,798	)	852,491

_______________________________________________________________________________

(1)

Represents an increase or decrease in the number of original PUs awarded based on either the final performance criteria or market condition achievement at the end of the performance period of such PUs or a change in estimated awards based on the forecasted performance against the predefined targets.

Calculation of basic and diluted net income (loss) per share attributable to the entity

The calculation of basic and diluted income (loss) per share for the three and six months ended June 30, 2019 and 2018 are as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2019		2018			2019		2018
Income (loss) from continuing operations	$	92,347	$	92,263		$	122,823	$	131,652
Less: Net income (loss) attributable to noncontrolling interests	34		142			925		610
Income (loss) from continuing operations (utilized in numerator of Earnings Per Share calculation)	$	92,313	$	92,121		$	121,898	$	131,042
Income (loss) from discontinued operations, net of tax	$	128	$	(360	)	$	104	$	(822	)
Net income (loss) attributable to Iron Mountain Incorporated	$	92,441	$	91,761		$	122,002	$	130,220
Weighted-average shares—basic	286,925,000		285,984,000			286,727,000		285,622,000
Effect of dilutive potential stock options	148,629		237,708			190,016		243,636
Effect of dilutive potential RSUs and PUs	407,659		347,543			570,040		415,929
Weighted-average shares—diluted	287,481,288		286,569,251			287,487,056		286,281,565
Earnings (losses) per share—basic:
Income (loss) from continuing operations	$	0.32	$	0.32		$	0.43	$	0.46
Income (loss) from discontinued operations, net of tax	—		—			—		—
Net income (loss) attributable to Iron Mountain Incorporated(1)	$	0.32	$	0.32		$	0.43	$	0.46
Earnings (losses) per share—diluted:
Income (loss) from continuing operations	$	0.32	$	0.32		$	0.42	$	0.46
Income (loss) from discontinued operations, net of tax	—		—			—		—
Net income (loss) attributable to Iron Mountain Incorporated(1)	$	0.32	$	0.32		$	0.42	$	0.45
Antidilutive stock options, RSUs and PUs, excluded from the calculation	5,004,112		3,272,502			4,494,637		3,257,322

_______________________________________________________________________________

(1) Columns may not foot due to rounding.

Schedule of effective income tax rate reconciliation

Our effective tax rates for the three and six months ended June 30, 2019 and 2018 are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019(1)		2018(1)		2019(1)		2018(2)
Effective Tax Rate	10.3	%	22.0	%	14.7	%	16.5	%

_______________________________________________________________________________

(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, 2019 and for the three months ended June 30, 2018 were the benefit derived from the dividends paid deduction and the impact of differences in the tax rates at which our foreign earnings are subject, including foreign exchange gains and losses in different jurisdictions with different tax rates.  

(2)

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, 2018 were the benefit derived from the dividends paid deduction, a discrete tax benefit of approximately $14,000 associated with the resolution of a tax matter and the impact of differences in the tax rates at which our foreign earnings are subject, including foreign exchange gains and losses in different jurisdictions with different tax rates.

Assets and liabilities carried at fair value measured on a recurring basis

The assets and liabilities carried at fair value measured on a recurring basis as of June 30, 2019 and December 31, 2018, respectively, are as follows:

			Fair Value Measurements at June 30, 2019 Using
Description	Total Carrying Value at June 30, 2019		Quoted prices in active markets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)
Money Market Funds(1)	$	4,418	$	—		$	4,418		$	—
Trading Securities	10,366		9,744		(2)	622		(3)	—
Interest Rate Swap Agreements Liabilities(5)	8,578		—			8,578			—

			Fair Value Measurements at December 31, 2018 Using
Description	Total Carrying Value at December 31, 2018		Quoted prices in active markets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)
Time Deposits(1)	$	956	$	—		$	956		$	—
Trading Securities	10,753		10,248		(2)	505		(3)	—
Derivative Assets(4)	93		—			93			—
Interest Rate Swap Agreements Liabilities(5)	973		—			973			—

_______________________________________________________________________________

(1) Money market funds and time deposits are measured based on quoted prices for similar assets and/or subsequent transactions.

(2) Certain trading securities are measured at fair value using quoted market prices.

(3) Certain trading securities are measured based on inputs that are observable other than quoted market prices.

(4) Derivative assets and liabilities relate to short-term (six months or less) foreign currency contracts that we have entered into to hedge certain of our foreign exchange intercompany exposures. We calculate the value of such forward contracts by adjusting the spot rate utilized at the balance sheet date for translation purposes by an estimate of the forward points observed in active markets. As of June 30, 2019, we had no outstanding forward contracts. As of December 31, 2018, we had outstanding forward contracts to purchase 29,000 Euros and sell $33,374 United States dollars. We have not designated any of the forward contracts we have entered into as hedges.

(5)

We have 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, 2019 and December 31, 2018, 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 rate payments (at the fixed rate interest specified in the interest rate swap agreements). We have designated these interest rate swaps as cash flow hedges. Unrealized gains are recognized as assets while unrealized losses are recognized as liabilities. The fair value of the interest rate swaps are estimated using industry standard valuation models using market-based observable inputs, including interest rate curves.

Schedule of changes in accumulated other comprehensive items, net

The changes in accumulated other comprehensive items, net for the three and six months ended June 30, 2019, respectively, are as follows:

	Three Months Ended June 30, 2019									Six Months Ended June 30, 2019
	Foreign Currency Translation Adjustments			Fair Value Adjustments for Interest Rate Swap Agreements			Total			Foreign Currency Translation Adjustments			Fair Value Adjustments for Interest Rate Swap Agreements			Total
Beginning of Period	$	(247,313	)	$	(3,647	)	$	(250,960	)	$	(264,691	)	$	(973	)	$	(265,664	)
Other comprehensive (loss) income:
Foreign currency translation adjustment(1)	(5,930		)	—			(5,930		)	11,448			—			11,448
Fair value adjustments for interest rate swap agreements	—			(4,931		)	(4,931		)	—			(7,605		)	(7,605		)
Total other comprehensive (loss) income	(5,930		)	(4,931		)	(10,861		)	11,448			(7,605		)	3,843
End of Period	$	(253,243	)	$	(8,578	)	$	(261,821	)	$	(253,243	)	$	(8,578	)	$	(261,821	)

_____________________________________________________________

(1) This amount includes foreign exchange losses (gains) of $4,280 and $(1,861) for the three and six months ended June 30, 2019, respectively, related to the change in fair value of the portion of our Euro Notes (as defined and discussed more fully in Note 4) designated as a hedge of net investment of certain of our Euro denominated subsidiaries. For the six months ended June 30, 2019, we designated, on average, 274,161 Euros of our Euro Notes as a hedge of net investment of certain of our Euro denominated subsidiaries. As of June 30, 2019, cumulative net gains of $16,119 net of tax, are recorded in accumulated other comprehensive items, net associated with this net investment hedge.

The changes in accumulated other comprehensive items, net for the three and six months ended June 30, 2018, respectively, are as follows:

	Three Months Ended June 30, 2018									Six Months Ended June 30, 2018
	Foreign Currency Translation Adjustments			Fair Value Adjustments for Interest Rate Swap Agreements			Total			Foreign Currency Translation Adjustments			Fair Value Adjustments for Interest Rate Swap Agreements		Total
Beginning of Period	$	(73,897	)	$	(185	)	$	(74,082	)	$	(103,989	)	$	—	$	(103,989	)
Other comprehensive (loss) income:
Foreign currency translation adjustment(1)	(135,756		)	—			(135,756		)	(105,664		)	—		(105,664		)
Fair value adjustments for interest rate swap agreements	—			2,388			2,388			—			2,203		2,203
Total other comprehensive (loss) income	(135,756		)	2,388			(133,368		)	(105,664		)	2,203		(103,461		)
End of Period	$	(209,653	)	$	2,203		$	(207,450	)	$	(209,653	)	$	2,203	$	(207,450	)

______________________________________________________________

(1) This amount includes foreign exchange gains of $10,257 and $4,622 for the three and six months ended June 30, 2018, respectively, related to the change in fair value of the portion of our Euro Notes designated as a hedge of net investment of certain of our Euro denominated subsidiaries. For the six months ended June 30, 2018, we designated, on average, 179,881 Euros of our Euro Notes as a hedge of net investment of certain of our Euro denominated subsidiaries.

Other expense (income), net

Other (income) expense, net for the three and six months ended June 30, 2019 and 2018 consists of the following:

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Foreign currency transaction (gains) losses, net	$	(19,331	)	$	(18,624	)	$	(1,634	)	$	3,161
Other, net	4,139			(432		)	1,652			(2,066		)
	$	(15,192	)	$	(19,056	)	$	18		$	1,095

Schedule of immaterial restatement

The following table sets forth the effect of the immaterial restatement to certain line items of our Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2018:

	Three Months Ended June 30, 2018			Six Months Ended June 30, 2018
Selling, general and administrative	$	1,899		$	9,339
Total Operating Expenses	$	1,899		$	9,339
Operating Income (Loss)	$	(1,899	)	$	(9,339	)
Interest Expense, Net	$	89		$	165
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes	$	(1,988	)	$	(9,504	)
Provision (Benefit) for Income Taxes	$	(348	)	$	(1,639	)
Income (Loss) from Continuing Operations	$	(1,640	)	$	(7,865	)
Net Income (Loss)	$	(1,640	)	$	(7,865	)
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	(1,640	)	$	(7,865	)
Earnings (Losses) per Share - Basic:
Income (Loss) from Continuing Operations	$	(0.01	)	$	(0.03	)
Net Income (Loss) from Continuing Operations Attributable to Iron Mountain	$	(0.01	)	$	(0.03	)
Earnings (Losses) per Share - Diluted:
Income (Loss) from Continuing Operations	$	(0.01	)	$	(0.03	)
Net Income (Loss) from Continuing Operations Attributable to Iron Mountain	$	(0.01	)	$	(0.03	)

The following table sets forth the effect of the immaterial restatement to certain line items of our Condensed Consolidated Balance Sheet as of December 31, 2018:

	December 31, 2018
Total Other Assets, Net	$	4,971
Total Assets	$	4,971
Accrued expenses and other current liabilities	$	28,097
Total Current Liabilities	$	28,097
(Distribution in excess of earnings) Earnings in excess of distributions	$	(23,126	)
Total Iron Mountain Incorporated Stockholders' Equity	$	(23,126	)

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Acquisitions (Tables)

6 Months Ended

Jun. 30, 2019

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

A summary of the cumulative consideration paid and the preliminary allocation of the purchase price paid for all of our 2019 acquisitions through June 30, 2019 is as follows:

	Six Months Ended June 30, 2019
Cash Paid (gross of cash acquired)(1)	$	39,072
Purchase Price Holdbacks and Other	2,394
Total Consideration	41,466
Fair Value of Identifiable Assets Acquired:
Cash	2,285
Accounts Receivable, Prepaid Expenses and Other Assets	3,164
Property, Plant and Equipment(2)	4,538
Customer Relationship Intangible Assets	15,670
Operating Lease Right-of-Use Assets	13,256
Accounts Payable, Accrued Expenses and Other Liabilities	(2,124		)
Operating Lease Liabilities	(13,256		)
Deferred Income Taxes	(1,628		)
Total Fair Value of Identifiable Net Assets Acquired	21,905
Goodwill Initially Recorded(3)	$	19,561

_______________________________________________________________________________

(1) Included in cash paid for acquisitions in the Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2019 is net cash acquired of $2,285 and contingent and other payments, net of $7,864 related to acquisitions made in previous years.

(2) Consists primarily of leasehold improvements, racking structures and warehouse equipment. These assets are depreciated using the straight-line method with the useful lives as noted in Note 2.f. to Notes to Consolidated Financial Statements included in our Annual Report.

(3) The goodwill associated with acquisitions is primarily attributable to the assembled workforce, expanded market opportunities and costs and other operating synergies anticipated upon the integration of the operations of us and the acquired businesses.

Business Acquisition, Pro Forma Information

The unaudited consolidated pro forma financial information (the "Pro Forma Financial Information") below summarizes the combined results of us and IODC on a pro forma basis as if the IODC Transaction had occurred on January 1, 2017. The Pro Forma Financial Information is presented for informational purposes and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place on January 1, 2017. The Pro Forma Financial Information, for the period presented, includes purchase accounting adjustments (including amortization expenses from acquired intangible assets and depreciation of acquired property, plant and equipment). We and IODC collectively incurred $28,064 of operating expenditures to complete the IODC Transaction (including advisory and professional fees). These operating expenditures have been reflected within the results of operations in the Pro Forma Financial Information as if they were incurred on January 1, 2017.

	Three Months Ended June 30, 2018		Six Months Ended June 30, 2018
Total Revenues	$	1,060,823	$	2,106,771
Income from Continuing Operations	$	92,263	$	141,604
Per Share Income from Continuing Operations - Basic	$	0.32	$	0.49
Per Share Income from Continuing Operations - Diluted	$	0.32	$	0.49

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Debt (Tables)

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Schedule of Carrying Amount and Fair Value of Long-Term Debt Instruments

Long-term debt is as follows:

	June 30, 2019											December 31, 2018
	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)	$	1,181,376		$	(12,548	)	$	1,168,828		$	1,181,376	$	793,832		$	(14,117	)	$	779,715		$	793,832
Term Loan A(1)	234,375			—			234,375			234,375		240,625			—			240,625			240,625
Term Loan B(2)	689,782			(8,118		)	681,664			668,784		693,169			(8,742		)	684,427			660,013
Australian Dollar Term Loan (the "AUD Term Loan")(3)	230,048			(2,691		)	227,357			231,506		233,955			(3,084		)	230,871			235,645
UK Bilateral Revolving Credit Facility ("UK Bilateral Facility")(4)	177,762			(2,030		)	175,732			177,762		178,299			(2,357		)	175,942			178,299
43/8% Senior Notes due 2021 (the "43/8% Notes")(5)	500,000			(3,295		)	496,705			505,000		500,000			(4,155		)	495,845			488,750
6% Senior Notes due 2023 (the "6% Notes due 2023")(5)	600,000			(4,576		)	595,424			612,000		600,000			(5,126		)	594,874			606,000
53/8% CAD Senior Notes due 2023 (the "CAD Notes")	190,972			(2,335		)	188,637			192,882		183,403			(2,506		)	180,897			186,154
53/4% Senior Subordinated Notes due 2024 (the "53/4% Notes")(5)	1,000,000			(7,096		)	992,904			1,010,000		1,000,000			(7,782		)	992,218			940,000
3% Euro Senior Notes due 2025 (the "Euro Notes")(5)	341,128			(3,781		)	337,347			351,113		343,347			(4,098		)	339,249			321,029
37/8% GBP Senior Notes due 2025 (the "GBP Notes")	507,891			(6,074		)	501,817			502,192		509,425			(6,573		)	502,852			453,811
53/8% Senior Notes due 2026 (the "53/8% Notes")	250,000			(2,971		)	247,029			252,500		250,000			(3,185		)	246,815			224,375
47/8% Senior Notes due 2027 (the "47/8% Notes")(5)	1,000,000			(11,731		)	988,269			990,000		1,000,000			(12,442		)	987,558			855,000
51/4% Senior Notes due 2028 (the "51/4% Notes")(5)	825,000			(10,333		)	814,667			825,000		825,000			(10,923		)	814,077			713,625
Real Estate Mortgages, Financing Lease Liabilities and Other	559,622			(425		)	559,197			559,622		606,702			(171		)	606,531			606,702
Accounts Receivable Securitization Program(6)	254,962			(149		)	254,813			254,962		221,673			(218		)	221,455			221,673
Mortgage Securitization Program(7)	50,000			(1,055		)	48,945			50,000		50,000			(1,128		)	48,872			50,000
Total Long-term Debt	8,592,918			(79,208		)	8,513,710					8,229,430			(86,607		)	8,142,823
Less Current Portion	(123,527		)	—			(123,527		)			(126,406		)	—			(126,406		)
Long-term Debt, Net of Current Portion	$	8,469,391		$	(79,208	)	$	8,390,183				$	8,103,024		$	(86,607	)	$	8,016,417

______________________________________________________________

(1) Collectively, the credit agreement ("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. Of the $1,181,376 of outstanding borrowings under the Revolving Credit Facility as of June 30, 2019, 1,028,900 was denominated in United States dollars, 76,800 was denominated in Canadian dollars and 82,500 was denominated in Euros. In addition, we also had various outstanding letters of credit totaling $35,250. The remaining amount available for borrowing under the Revolving Credit Facility as of June 30, 2019 was $533,374 (which amount represents the maximum availability as of such date). The average interest rate in effect under the Credit Agreement was 4.0% as of June 30, 2019. The average interest rate in effect under the Revolving Credit Facility as of June 30, 2019 was 4.0% and the interest rate in effect under Term Loan A as of June 30, 2019 was 4.2%.

(2) In connection with the 2018 First Amendment (as defined in Note 5 to Notes to Consolidated Financial Statements included in our Annual Report), Iron Mountain Information Management, LLC ("IMIM") entered into an incremental term loan activation notice (the "Activation Notice") with certain lenders pursuant to which the lenders party to the Activation Notice agreed to provide commitments to fund an incremental term loan B in the amount of $700,000 (the "Term Loan B"). On March 26, 2018, IMIM borrowed the full amount of the Term Loan B. The Term Loan B is scheduled to mature on January 2, 2026. The interest rate in effect as of June 30, 2019 was 4.2%. The amount of debt for the Term Loan B reflects an unamortized original issue discount of $1,468 and $1,581 as of June 30, 2019 and December 31, 2018, respectively.

(3) The interest rate in effect as of June 30, 2019 was 5.1%. We had 329,688 Australian dollars outstanding on the AUD Term Loan as of June 30, 2019. The amount of debt for the AUD Term Loan reflects an unamortized original issue discount of $1,458 and $1,690 as of June 30, 2019 and December 31, 2018, respectively.

(4) The interest rate in effect as of June 30, 2019 was 3.1%.

(5) Collectively, the "Parent Notes".

(6) The interest rate in effect as of June 30, 2019 was 3.4%.

(7)

The interest rate in effect as of June 30, 2019 was 3.5%.

Schedule of Net Cash Position in Cash Pool Agreements

The approximate amount of the net cash position for our QRS Cash Pool and the TRS Cash Pool and the approximate amount of the gross position and outstanding debit balances for each of these pools as of June 30, 2019 and December 31, 2018 are as follows:

	June 30, 2019							December 31, 2018
	Gross Cash Position		Outstanding Debit Balances			Net Cash Position		Gross Cash Position		Outstanding Debit Balances			Net Cash Position
QRS Cash Pool	$	308,200	$	(306,500	)	$	1,700	$	300,800	$	(298,800	)	$	2,000
TRS Cash Pool	295,500		(292,700		)	2,800		281,500		(279,300		)	2,200

Schedule of Leverage and Fixed Charge Ratios

Our leverage and fixed charge coverage ratios under the Credit Agreement as of June 30, 2019 and December 31, 2018, as well as our leverage ratio under our indentures as of June 30, 2019 and December 31, 2018 are as follows:

	June 30, 2019	December 31, 2018	Maximum/Minimum Allowable
Net total lease adjusted leverage ratio	5.8	5.6	Maximum allowable of 6.5
Net secured debt lease adjusted leverage ratio	2.8	2.6	Maximum allowable of 4.0
Bond leverage ratio (not lease adjusted)	6.1	5.8	Maximum allowable of 6.5-7.0(1)
Fixed charge coverage ratio	2.2	2.2	Minimum allowable of 1.5

______________________________________________________________

(1)

The maximum allowable leverage ratio under our indentures for the 4⁷/₈% Notes, the GBP Notes and the 5¹/₄% Notes is 7.0, while the maximum allowable leverage ratio under the indentures pertaining to our remaining senior and senior subordinated notes is 6.5. In certain instances as provided in our indentures, we have the ability to incur additional indebtedness that would result in our bond leverage ratio exceeding the maximum allowable ratio under our indentures and still remain in compliance with the covenant.

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Selected Consolidated Financial Statements of Parent, Guarantors and Non-Guarantors (Tables)

6 Months Ended

Jun. 30, 2019

Selected Consolidated Financial Statements of Parent, Guarantors, Canada Company and Non-Guarantors

Schedule of selected consolidated Balance sheet statements of Parent, Guarantors, Canada Company and Non-Guarantors

CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30, 2019
	Parent		Guarantors		Non- Guarantors		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents(1)	$	6	$	124,553	$	106,923	$	(69,486	)	$	161,996
Accounts receivable	—		65,357		786,973		—			852,330
Intercompany receivable	—		1,184,345		—		(1,184,345		)	—
Prepaid expenses and other	—		87,505		113,301		(29		)	200,777
Total Current Assets	6		1,461,760		1,007,197		(1,253,860		)	1,215,103
Property, Plant and Equipment, Net	145		3,013,538		1,544,876		—			4,558,559
Other Assets, Net:
Long-term notes receivable from affiliates and intercompany receivable	5,072,926		—		—		(5,072,926		)	—
Investment in subsidiaries	1,982,052		1,073,877		—		(3,055,929		)	—
Goodwill	—		2,857,968		1,615,456		—			4,473,424
Operating lease right-of-use assets	—		921,540		872,267		—			1,793,807
Other	2		965,060		715,027		—			1,680,089
Total Other Assets, Net	7,054,980		5,818,445		3,202,750		(8,128,855		)	7,947,320
Total Assets	$	7,055,131	$	10,293,743	$	5,754,823	$	(9,382,715	)	$	13,720,982
Liabilities and Equity
Intercompany Payable	$	892,894	$	—	$	291,451	$	(1,184,345	)	$	—
Debit Balances Under Cash Pools	—		—		69,486		(69,486		)	—
Current Portion of Long-Term Debt	—		54,848		68,708		(29		)	123,527
Total Other Current Liabilities (includes current portion of operating lease liabilities)	270,521		679,750		542,989		—			1,493,260
Long-Term Debt, Net of Current Portion	4,225,317		2,265,699		1,899,167		—			8,390,183
Long-Term Operating Lease Liabilities, Net of Current Portion	—		857,375		798,102		—			1,655,477
Long-Term Notes Payable to Affiliates and Intercompany Payable	—		5,072,926		—		(5,072,926		)	—
Other Long-term Liabilities	8,578		51,721		266,142		—			326,441
Commitments and Contingencies (See Note 7)
Redeemable Noncontrolling Interests	—		—		73,113		—			73,113
Total Iron Mountain Incorporated Stockholders' Equity	1,657,821		1,311,424		1,744,505		(3,055,929		)	1,657,821
Noncontrolling Interests	—		—		1,160		—			1,160
Total Equity	1,657,821		1,311,424		1,745,665		(3,055,929		)	1,658,981
Total Liabilities and Equity	$	7,055,131	$	10,293,743	$	5,754,823	$	(9,382,715	)	$	13,720,982

______________________________________________________________

(1) Included within Cash and Cash Equivalents at June 30, 2019 is approximately $74,000 and $0 of cash on deposit associated with our Cash Pools for the Guarantors and Non-Guarantors, respectively.

CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)

	December 31, 2018
	Parent		Guarantors		Non- Guarantors		Eliminations			Consolidated
Assets
Current Assets:
Cash and cash equivalents(1)	$	132	$	61,650	$	169,318	$	(65,615	)	$	165,485
Accounts receivable	—		47,900		798,989		—			846,889
Intercompany receivable	—		818,463		—		(818,463		)	—
Prepaid expenses and other	93		108,879		86,797		(29		)	195,740
Total Current Assets	225		1,036,892		1,055,104		(884,107		)	1,208,114
Property, Plant and Equipment, Net	190		3,002,104		1,487,263		—			4,489,557
Other Assets, Net:
Long-term notes receivable from affiliates and intercompany receivable	4,954,686		—		—		(4,954,686		)	—
Investment in subsidiaries	1,862,048		983,018		—		(2,845,066		)	—
Goodwill	—		2,858,539		1,582,491		—			4,441,030
Other	—		979,483		739,034		—			1,718,517
Total Other Assets, Net	6,816,734		4,821,040		2,321,525		(7,799,752		)	6,159,547
Total Assets	$	6,817,149	$	8,860,036	$	4,863,892	$	(8,683,859	)	$	11,857,218
Liabilities and Equity
Intercompany Payable	$	462,927	$	—	$	355,536	$	(818,463	)	$	—
Debit Balances Under Cash Pools	—		10,612		55,003		(65,615		)	—
Current Portion of Long-Term Debt	—		63,703		62,732		(29		)	126,406
Total Other Current Liabilities	268,373		616,826		479,170		—			1,364,369
Long-Term Debt, Net of Current Portion	4,223,822		1,877,649		1,914,946		—			8,016,417
Long-Term Notes Payable to Affiliates and Intercompany Payable	—		4,954,686		—		(4,954,686		)	—
Other Long-term Liabilities	973		115,994		300,064		—			417,031
Commitments and Contingencies (See Note 7)
Redeemable Noncontrolling Interests	—		—		70,532		—			70,532
Total Iron Mountain Incorporated Stockholders' Equity	1,861,054		1,220,566		1,624,500		(2,845,066		)	1,861,054
Noncontrolling Interests	—		—		1,409		—			1,409
Total Equity	1,861,054		1,220,566		1,625,909		(2,845,066		)	1,862,463
Total Liabilities and Equity	$	6,817,149	$	8,860,036	$	4,863,892	$	(8,683,859	)	$	11,857,218

______________________________________________________________

(1) Included within Cash and Cash Equivalents at December 31, 2018 is approximately $57,200 and $12,700 of cash on deposit associated with our Cash Pools for the Guarantors and Non-Guarantors, respectively.

Schedule of selected consolidated Income statements of Parent, Guarantors, Canada Company and Non-Guarantors

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

	Three Months Ended June 30, 2019
	Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage rental	$	—		$	411,159		$	258,129		$	—		$	669,288
Service	—			246,090			151,529			—			397,619
Intercompany revenues	—			1,158			4,540			(5,698		)	—
Total Revenues	—			658,407			414,198			(5,698		)	1,066,907
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	—			260,675			204,427			—			465,102
Intercompany	—			4,540			1,158			(5,698		)	—
Selling, general and administrative	62			173,443			79,259			—			252,764
Depreciation and amortization	22			104,594			59,715			—			164,331
Loss (Gain) on disposal/write-down of property, plant and equipment, net	—			26,786			(35,191		)	—			(8,405		)
Total Operating Expenses	84			570,038			309,368			(5,698		)	873,792
Operating (Loss) Income	(84		)	88,369			104,830			—			193,115
Interest Expense (Income), Net(1)	49,601			8,640			47,073			—			105,314
Other Expense (Income), Net	359			4,487			(20,038		)	—			(15,192		)
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes	(50,044		)	75,242			77,795			—			102,993
Provision (Benefit) for Income Taxes	—			1,153			9,493			—			10,646
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	(142,485		)	(69,710		)	—			212,195			—
Income (Loss) from Continuing Operations	92,441			143,799			68,302			(212,195		)	92,347
Income (Loss) from Discontinued Operations, Net of Tax	—			144			(16		)	—			128
Net Income (Loss)	92,441			143,943			68,286			(212,195		)	92,475
Less: Net Income (Loss) Attributable to Noncontrolling Interests	—			—			34			—			34
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	92,441		$	143,943		$	68,252		$	(212,195	)	$	92,441
Net Income (Loss)	$	92,441		$	143,943		$	68,286		$	(212,195	)	$	92,475
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustments	(4,280		)	—			(1,511		)	—			(5,791		)
Change in fair value of interest rate swap agreements	(4,931		)	—			—			—			(4,931		)
Equity in Other Comprehensive (Loss) Income of Subsidiaries	(1,650		)	1,121			—			529			—
Total Other Comprehensive (Loss) Income	(10,861		)	1,121			(1,511		)	529			(10,722		)
Comprehensive Income (Loss)	81,580			145,064			66,775			(211,666		)	81,753
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	—			—			173			—			173
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$	81,580		$	145,064		$	66,602		$	(211,666	)	$	81,580

_____________________________________________________________

(1) Included within Interest Expense (Income), Net are intercompany management fees and royalty fees, which are eliminated in our consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Continued)

	Three Months Ended June 30, 2018
	Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage rental	$	—		$	397,449		$	257,990		$	—		$	655,439
Service	—			244,403			160,981			—			405,384
Intercompany revenues	—			1,216			4,305			(5,521		)	—
Total Revenues	—			643,068			423,276			(5,521		)	1,060,823
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	—			251,360			200,104			—			451,464
Intercompany cost of sales	—			4,305			1,216			(5,521		)	—
Selling, general and administrative	36			167,739			84,450			—			252,225
Depreciation and amortization	32			96,170			60,018			—			156,220
(Gain) Loss on disposal/write-down of property, plant and equipment, net	—			(462		)	(84		)	—			(546		)
Total Operating Expenses	68			519,112			345,704			(5,521		)	859,363
Operating (Loss) Income	(68		)	123,956			77,572			—			201,460
Interest Expense (Income), Net(1)	50,313			3,005			48,878			—			102,196
Other Expense (Income), Net	2,767			6,575			(28,398		)	—			(19,056		)
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes	(53,148		)	114,376			57,092			—			118,320
Provision (Benefit) for Income Taxes	—			12,509			13,548			—			26,057
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	(144,909		)	(38,071		)	—			182,980			—
Income (Loss) from Continuing Operations	91,761			139,938			43,544			(182,980		)	92,263
(Loss) Income from Discontinued Operations	—			(273		)	(87		)	—			(360		)
Net Income (Loss)	91,761			139,665			43,457			(182,980		)	91,903
Less: Net Income (Loss) Attributable to Noncontrolling Interests	—			—			142			—			142
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	91,761		$	139,665		$	43,315		$	(182,980	)	$	91,761
Net Income (Loss)	$	91,761		$	139,665		$	43,457		$	(182,980	)	$	91,903
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustment	10,257			—			(149,429		)	—			(139,172		)
Change in fair value of interest rate swap agreements	2,388			—			—			—			2,388
Equity in Other Comprehensive (Loss) Income of Subsidiaries	(146,018		)	(129,860		)	—			275,878			—
Total Other Comprehensive (Loss) Income	(133,373		)	(129,860		)	(149,429		)	275,878			(136,784		)
Comprehensive (Loss) Income	(41,612		)	9,805			(105,972		)	92,898			(44,881		)
Comprehensive (Loss) Income Attributable to Noncontrolling Interests	—			—			(3,274		)	—			(3,274		)
Comprehensive (Loss) Income Attributable to Iron Mountain Incorporated	$	(41,612	)	$	9,805		$	(102,698	)	$	92,898		$	(41,607	)

_____________________________________________________________

(1) Included within Interest Expense (Income), Net are intercompany management fees and royalty fees, which are eliminated in our consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Continued)

	Six Months Ended June 30, 2019
	Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage rental	$	—		$	814,900		$	517,362		$	—		$	1,332,262
Service	—			485,783			302,725			—			788,508
Intercompany revenues	—			2,312			9,463			(11,775		)	—
Total Revenues	—			1,302,995			829,550			(11,775		)	2,120,770
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	—			523,812			402,834			—			926,646
Intercompany cost of sales	—			9,463			2,312			(11,775		)	—
Selling, general and administrative	149			361,265			161,909			—			523,323
Depreciation and amortization	45			207,548			119,221			—			326,814
Loss (Gain) on disposal/write-down of property, plant and equipment, net	—			27,360			(35,163		)	—			(7,803		)
Total Operating Expenses	194			1,129,448			651,113			(11,775		)	1,768,980
Operating (Loss) Income	(194		)	173,547			178,437			—			351,790
Interest Expense (Income), Net(1)	99,226			12,697			95,827			—			207,750
Other Expense (Income), Net	541			5,014			(5,537		)	—			18
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes	(99,961		)	155,836			88,147			—			144,022
Provision (Benefit) for Income Taxes	—			2,454			18,745			—			21,199
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	(221,963		)	(65,552		)	—			287,515			—
Income (Loss) from Continuing Operations	122,002			218,934			69,402			(287,515		)	122,823
Income (Loss) from Discontinued Operations	—			120			(16		)	—			104
Net Income (Loss)	122,002			219,054			69,386			(287,515		)	122,927
Less: Net Income (Loss) Attributable to Noncontrolling Interests	—			—			925			—			925
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	122,002		$	219,054		$	68,461		$	(287,515	)	$	122,002
Net Income (Loss)	$	122,002		$	219,054		$	69,386		$	(287,515	)	$	122,927
Other Comprehensive Income (Loss):
Foreign Currency Translation Adjustments	1,861			—			10,539			—			12,400
Change in fair value of interest rate swap agreements	(7,605		)	—			—			—			(7,605		)
Equity in Other Comprehensive Income (Loss) of Subsidiaries	9,587			8,277			—			(17,864		)	—
Total Other Comprehensive Income (Loss)	3,843			8,277			10,539			(17,864		)	4,795
Comprehensive Income (Loss)	125,845			227,331			79,925			(305,379		)	127,722
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	—			—			1,877			—			1,877
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$	125,845		$	227,331		$	78,048		$	(305,379	)	$	125,845

_____________________________________________________________

(1) Included within Interest Expense (Income), Net are intercompany management fees and royalty fees, which are eliminated in our consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Continued)

	Six Months Ended June 30, 2018
	Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage rental	$	—		$	793,925		$	512,663		$	—		$	1,306,588
Service	—			474,633			322,060			—			796,693
Intercompany revenues	—			2,421			8,796			(11,217		)	—
Total Revenues	—			1,270,979			843,519			(11,217		)	2,103,281
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	—			497,523			402,662			—			900,185
Intercompany cost of sales	—			8,796			2,421			(11,217		)	—
Selling, general and administrative	79			353,087			176,229			—			529,395
Depreciation and amortization	65			198,616			118,117			—			316,798
(Gain) Loss on disposal/write-down of property, plant and equipment, net	—			(818		)	(858		)	—			(1,676		)
Total Operating Expenses	144			1,057,204			698,571			(11,217		)	1,744,702
Operating (Loss) Income	(144		)	213,775			144,948			—			358,579
Interest Expense (Income), Net(1)	100,254			1,497			98,147			—			199,898
Other Expense (Income), Net	1,610			8,135			(8,650		)	—			1,095
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes	(102,008		)	204,143			55,451			—			157,586
Provision (Benefit) for Income Taxes	—			5,797			20,137			—			25,934
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	(232,228		)	(28,981		)	—			261,209			—
Income (Loss) from Continuing Operations	130,220			227,327			35,314			(261,209		)	131,652
(Loss) Income from Discontinued Operations	—			(695		)	(127		)	—			(822		)
Net Income (Loss)	130,220			226,632			35,187			(261,209		)	130,830
Less: Net Income (Loss) Attributable to Noncontrolling Interests	—			—			610			—			610
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	130,220		$	226,632		$	34,577		$	(261,209	)	$	130,220
Net Income (Loss)	$	130,220		$	226,632		$	35,187		$	(261,209	)	$	130,830
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustment	4,622			—			(112,143		)	—			(107,521		)
Change in fair value of interest rate swap agreements	2,203			—			—			—			2,203
Equity in Other Comprehensive (Loss) Income of Subsidiaries	(110,286		)	(91,524		)	—			201,810			—
Total Other Comprehensive (Loss) Income	(103,461		)	(91,524		)	(112,143		)	201,810			(105,318		)
Comprehensive Income (Loss)	26,759			135,108			(76,956		)	(59,399		)	25,512
Comprehensive (Loss) Income Attributable to Noncontrolling Interests	—			—			(1,247		)	—			(1,247		)
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$	26,759		$	135,108		$	(75,709	)	$	(59,399	)	$	26,759

______________________________________________________

(1)

Included within Interest Expense (Income), Net are intercompany management fees and royalty fees, which are eliminated in our consolidated financial statements.

Schedule of selected consolidated Comprehensive Income statements of Parent, Guarantors, Canada Company and Non-Guarantors

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

	Three Months Ended June 30, 2019
	Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage rental	$	—		$	411,159		$	258,129		$	—		$	669,288
Service	—			246,090			151,529			—			397,619
Intercompany revenues	—			1,158			4,540			(5,698		)	—
Total Revenues	—			658,407			414,198			(5,698		)	1,066,907
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	—			260,675			204,427			—			465,102
Intercompany	—			4,540			1,158			(5,698		)	—
Selling, general and administrative	62			173,443			79,259			—			252,764
Depreciation and amortization	22			104,594			59,715			—			164,331
Loss (Gain) on disposal/write-down of property, plant and equipment, net	—			26,786			(35,191		)	—			(8,405		)
Total Operating Expenses	84			570,038			309,368			(5,698		)	873,792
Operating (Loss) Income	(84		)	88,369			104,830			—			193,115
Interest Expense (Income), Net(1)	49,601			8,640			47,073			—			105,314
Other Expense (Income), Net	359			4,487			(20,038		)	—			(15,192		)
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes	(50,044		)	75,242			77,795			—			102,993
Provision (Benefit) for Income Taxes	—			1,153			9,493			—			10,646
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	(142,485		)	(69,710		)	—			212,195			—
Income (Loss) from Continuing Operations	92,441			143,799			68,302			(212,195		)	92,347
Income (Loss) from Discontinued Operations, Net of Tax	—			144			(16		)	—			128
Net Income (Loss)	92,441			143,943			68,286			(212,195		)	92,475
Less: Net Income (Loss) Attributable to Noncontrolling Interests	—			—			34			—			34
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	92,441		$	143,943		$	68,252		$	(212,195	)	$	92,441
Net Income (Loss)	$	92,441		$	143,943		$	68,286		$	(212,195	)	$	92,475
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustments	(4,280		)	—			(1,511		)	—			(5,791		)
Change in fair value of interest rate swap agreements	(4,931		)	—			—			—			(4,931		)
Equity in Other Comprehensive (Loss) Income of Subsidiaries	(1,650		)	1,121			—			529			—
Total Other Comprehensive (Loss) Income	(10,861		)	1,121			(1,511		)	529			(10,722		)
Comprehensive Income (Loss)	81,580			145,064			66,775			(211,666		)	81,753
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	—			—			173			—			173
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$	81,580		$	145,064		$	66,602		$	(211,666	)	$	81,580

_____________________________________________________________

(1) Included within Interest Expense (Income), Net are intercompany management fees and royalty fees, which are eliminated in our consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Continued)

	Three Months Ended June 30, 2018
	Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage rental	$	—		$	397,449		$	257,990		$	—		$	655,439
Service	—			244,403			160,981			—			405,384
Intercompany revenues	—			1,216			4,305			(5,521		)	—
Total Revenues	—			643,068			423,276			(5,521		)	1,060,823
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	—			251,360			200,104			—			451,464
Intercompany cost of sales	—			4,305			1,216			(5,521		)	—
Selling, general and administrative	36			167,739			84,450			—			252,225
Depreciation and amortization	32			96,170			60,018			—			156,220
(Gain) Loss on disposal/write-down of property, plant and equipment, net	—			(462		)	(84		)	—			(546		)
Total Operating Expenses	68			519,112			345,704			(5,521		)	859,363
Operating (Loss) Income	(68		)	123,956			77,572			—			201,460
Interest Expense (Income), Net(1)	50,313			3,005			48,878			—			102,196
Other Expense (Income), Net	2,767			6,575			(28,398		)	—			(19,056		)
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes	(53,148		)	114,376			57,092			—			118,320
Provision (Benefit) for Income Taxes	—			12,509			13,548			—			26,057
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	(144,909		)	(38,071		)	—			182,980			—
Income (Loss) from Continuing Operations	91,761			139,938			43,544			(182,980		)	92,263
(Loss) Income from Discontinued Operations	—			(273		)	(87		)	—			(360		)
Net Income (Loss)	91,761			139,665			43,457			(182,980		)	91,903
Less: Net Income (Loss) Attributable to Noncontrolling Interests	—			—			142			—			142
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	91,761		$	139,665		$	43,315		$	(182,980	)	$	91,761
Net Income (Loss)	$	91,761		$	139,665		$	43,457		$	(182,980	)	$	91,903
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustment	10,257			—			(149,429		)	—			(139,172		)
Change in fair value of interest rate swap agreements	2,388			—			—			—			2,388
Equity in Other Comprehensive (Loss) Income of Subsidiaries	(146,018		)	(129,860		)	—			275,878			—
Total Other Comprehensive (Loss) Income	(133,373		)	(129,860		)	(149,429		)	275,878			(136,784		)
Comprehensive (Loss) Income	(41,612		)	9,805			(105,972		)	92,898			(44,881		)
Comprehensive (Loss) Income Attributable to Noncontrolling Interests	—			—			(3,274		)	—			(3,274		)
Comprehensive (Loss) Income Attributable to Iron Mountain Incorporated	$	(41,612	)	$	9,805		$	(102,698	)	$	92,898		$	(41,607	)

_____________________________________________________________

(1) Included within Interest Expense (Income), Net are intercompany management fees and royalty fees, which are eliminated in our consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Continued)

	Six Months Ended June 30, 2019
	Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage rental	$	—		$	814,900		$	517,362		$	—		$	1,332,262
Service	—			485,783			302,725			—			788,508
Intercompany revenues	—			2,312			9,463			(11,775		)	—
Total Revenues	—			1,302,995			829,550			(11,775		)	2,120,770
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	—			523,812			402,834			—			926,646
Intercompany cost of sales	—			9,463			2,312			(11,775		)	—
Selling, general and administrative	149			361,265			161,909			—			523,323
Depreciation and amortization	45			207,548			119,221			—			326,814
Loss (Gain) on disposal/write-down of property, plant and equipment, net	—			27,360			(35,163		)	—			(7,803		)
Total Operating Expenses	194			1,129,448			651,113			(11,775		)	1,768,980
Operating (Loss) Income	(194		)	173,547			178,437			—			351,790
Interest Expense (Income), Net(1)	99,226			12,697			95,827			—			207,750
Other Expense (Income), Net	541			5,014			(5,537		)	—			18
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes	(99,961		)	155,836			88,147			—			144,022
Provision (Benefit) for Income Taxes	—			2,454			18,745			—			21,199
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	(221,963		)	(65,552		)	—			287,515			—
Income (Loss) from Continuing Operations	122,002			218,934			69,402			(287,515		)	122,823
Income (Loss) from Discontinued Operations	—			120			(16		)	—			104
Net Income (Loss)	122,002			219,054			69,386			(287,515		)	122,927
Less: Net Income (Loss) Attributable to Noncontrolling Interests	—			—			925			—			925
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	122,002		$	219,054		$	68,461		$	(287,515	)	$	122,002
Net Income (Loss)	$	122,002		$	219,054		$	69,386		$	(287,515	)	$	122,927
Other Comprehensive Income (Loss):
Foreign Currency Translation Adjustments	1,861			—			10,539			—			12,400
Change in fair value of interest rate swap agreements	(7,605		)	—			—			—			(7,605		)
Equity in Other Comprehensive Income (Loss) of Subsidiaries	9,587			8,277			—			(17,864		)	—
Total Other Comprehensive Income (Loss)	3,843			8,277			10,539			(17,864		)	4,795
Comprehensive Income (Loss)	125,845			227,331			79,925			(305,379		)	127,722
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	—			—			1,877			—			1,877
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$	125,845		$	227,331		$	78,048		$	(305,379	)	$	125,845

_____________________________________________________________

(1) Included within Interest Expense (Income), Net are intercompany management fees and royalty fees, which are eliminated in our consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Continued)

	Six Months Ended June 30, 2018
	Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Revenues:
Storage rental	$	—		$	793,925		$	512,663		$	—		$	1,306,588
Service	—			474,633			322,060			—			796,693
Intercompany revenues	—			2,421			8,796			(11,217		)	—
Total Revenues	—			1,270,979			843,519			(11,217		)	2,103,281
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	—			497,523			402,662			—			900,185
Intercompany cost of sales	—			8,796			2,421			(11,217		)	—
Selling, general and administrative	79			353,087			176,229			—			529,395
Depreciation and amortization	65			198,616			118,117			—			316,798
(Gain) Loss on disposal/write-down of property, plant and equipment, net	—			(818		)	(858		)	—			(1,676		)
Total Operating Expenses	144			1,057,204			698,571			(11,217		)	1,744,702
Operating (Loss) Income	(144		)	213,775			144,948			—			358,579
Interest Expense (Income), Net(1)	100,254			1,497			98,147			—			199,898
Other Expense (Income), Net	1,610			8,135			(8,650		)	—			1,095
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes	(102,008		)	204,143			55,451			—			157,586
Provision (Benefit) for Income Taxes	—			5,797			20,137			—			25,934
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	(232,228		)	(28,981		)	—			261,209			—
Income (Loss) from Continuing Operations	130,220			227,327			35,314			(261,209		)	131,652
(Loss) Income from Discontinued Operations	—			(695		)	(127		)	—			(822		)
Net Income (Loss)	130,220			226,632			35,187			(261,209		)	130,830
Less: Net Income (Loss) Attributable to Noncontrolling Interests	—			—			610			—			610
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	130,220		$	226,632		$	34,577		$	(261,209	)	$	130,220
Net Income (Loss)	$	130,220		$	226,632		$	35,187		$	(261,209	)	$	130,830
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustment	4,622			—			(112,143		)	—			(107,521		)
Change in fair value of interest rate swap agreements	2,203			—			—			—			2,203
Equity in Other Comprehensive (Loss) Income of Subsidiaries	(110,286		)	(91,524		)	—			201,810			—
Total Other Comprehensive (Loss) Income	(103,461		)	(91,524		)	(112,143		)	201,810			(105,318		)
Comprehensive Income (Loss)	26,759			135,108			(76,956		)	(59,399		)	25,512
Comprehensive (Loss) Income Attributable to Noncontrolling Interests	—			—			(1,247		)	—			(1,247		)
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$	26,759		$	135,108		$	(75,709	)	$	(59,399	)	$	26,759

______________________________________________________

(1)

Included within Interest Expense (Income), Net are intercompany management fees and royalty fees, which are eliminated in our consolidated financial statements.

Schedule of selected consolidated cash flow statements of Parent, Guarantors, Canada Company and Non-Guarantors

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six Months Ended June 30, 2019
	Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Cash Flows from Operating Activities:
Cash Flows from Operating Activities—Continuing Operations	$	(75,316	)	$	397,474		$	107,573		$	—		$	429,731
Cash Flows from Operating Activities—Discontinued Operations	—			—			—			—			—
Cash Flows from Operating Activities	(75,316		)	397,474			$	107,573		$	—		$	429,731
Cash Flows from Investing Activities:
Capital expenditures	—			(201,784		)	(165,347		)	—			(367,131		)
Cash paid for acquisitions, net of cash acquired	—			(9,508		)	(35,143		)	—			(44,651		)
Intercompany loans to subsidiaries	430,274			10,696			—			(440,970		)	—
Acquisitions of customer relationships, customer inducements and data center lease-based intangibles	—			(68,153		)	(22,409		)	—			(90,562		)
Investments in joint ventures (see Note 9)	—			(19,222		)	—			—			(19,222		)
Proceeds from sales of property and equipment and other, net	—			54			46,778			—			46,832
Cash Flows from Investing Activities—Continuing Operations	430,274			(287,917		)	(176,121		)	(440,970		)	(474,734		)
Cash Flows from Investing Activities—Discontinued Operations	—			2,564			2,497			—			5,061
Cash Flows from Investing Activities	430,274			(285,353		)	(173,624		)	(440,970		)	(469,673		)
Cash Flows from Financing Activities:
Repayment of revolving credit facility, term loan facilities and other debt	—			(837,712		)	(1,765,210		)	—			(2,602,922		)
Proceeds from revolving credit facility, term loan facilities and other debt	—			1,209,304			1,788,803			—			2,998,107
Debit (payments) balances under cash pools	—			(10,612		)	14,483			(3,871		)	—
Debt (repayment to) financing from and equity (distribution to) contribution from noncontrolling interests, net	—			—			(999		)	—			(999		)
Intercompany loans from parent	—			(410,198		)	(30,772		)	440,970			—
Parent cash dividends	(353,357		)	—			—			—			(353,357		)
Net (payments) proceeds associated with employee stock-based awards	(1,727		)	—			—			—			(1,727		)
Cash Flows from Financing Activities—Continuing Operations	(355,084		)	(49,218		)	6,305			437,099			39,102
Cash Flows from Financing Activities—Discontinued Operations	—			—			—			—			—
Cash Flows from Financing Activities	(355,084		)	(49,218		)	6,305			437,099			39,102
Effect of exchange rates on cash and cash equivalents	—			—			(2,649		)	—			(2,649		)
(Decrease) Increase in cash and cash equivalents	(126		)	62,903			(62,395		)	(3,871		)	(3,489		)
Cash and cash equivalents, including Restricted Cash, beginning of period	132			61,650			169,318			(65,615		)	165,485
Cash and cash equivalents, including Restricted Cash, end of period	$	6		$	124,553		$	106,923		$	(69,486	)	$	161,996

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

	Six Months Ended June 30, 2018
	Parent			Guarantors			Non- Guarantors			Eliminations			Consolidated
Cash Flows from Operating Activities:
Cash Flows from Operating Activities—Continuing Operations	$	(117,979	)	$	409,167		$	102,618		$	—		$	393,806
Cash Flows from Operating Activities—Discontinued Operations	—			(477		)	—			—			(477		)
Cash Flows from Operating Activities	(117,979		)	408,690			102,618			—			393,329
Cash Flows from Investing Activities:
Capital expenditures	—			(142,737		)	(74,864		)	—			(217,601		)
Cash paid for acquisitions, net of cash acquired	—			(1,314,370		)	(352,499		)	—			(1,666,869		)
Intercompany loans to subsidiaries	370,423			19,092			—			(389,515		)	—
Acquisitions of customer relationships, customer inducements and data center lease-based intangibles	—			(24,922		)	(12,311		)	—			(37,233		)
Proceeds from sales of property and equipment and other, net	—			—			207			—			207
Cash Flows from Investing Activities—Continuing Operations	370,423			(1,462,937		)	(439,467		)	(389,515		)	(1,921,496		)
Cash Flows from Investing Activities—Discontinued Operations	—			—			—			—			—
Cash Flows from Investing Activities	370,423			(1,462,937		)	(439,467		)	(389,515		)	(1,921,496		)
Cash Flows from Financing Activities:
Repayment of revolving credit facility, term loan facilities and other debt	—			(3,657,315		)	(4,219,481		)	—			(7,876,796		)
Proceeds from revolving credit facility, term loan facilities and other debt	—			4,531,603			4,412,813			—			8,944,416
Debit (payments) balances under cash pools	—			(7,657		)	2,850			4,807			—
Debt (repayment to) financing from and equity (distribution to) contribution from noncontrolling interests, net	—			—			(1,079		)	—			(1,079		)
Intercompany loans from parent	—			(384,323		)	(5,192		)	389,515			—
Parent cash dividends	(337,052		)	—			—			—			(337,052		)
Net (payments) proceeds associated with employee stock-based awards	(2,259		)	—			—			—			(2,259		)
Net proceeds associated with the Over-Allotment Option exercise	76,192			—			—			—			76,192
Net proceeds associated with the At the Market (ATM) Program	8,716			—			—			—			8,716
Payment of debt financing and stock issuance costs	(412		)	(12,322		)	(651		)	—			(13,385		)
Cash Flows from Financing Activities—Continuing Operations	(254,815		)	469,986			189,260			394,322			798,753
Cash Flows from Financing Activities—Discontinued Operations	—			—			—			—			—
Cash Flows from Financing Activities	(254,815		)	469,986			189,260			394,322			798,753
Effect of exchange rates on cash and cash equivalents	—			—			(8,093		)	—			(8,093		)
(Decrease) Increase in cash and cash equivalents	(2,371		)	(584,261		)	(155,682		)	4,807			(737,507		)
Cash and cash equivalents, including Restricted Cash, beginning of period	2,433			634,317			383,675			(94,726		)	925,699
Cash and cash equivalents, including Restricted Cash, end of period	$	62		$	50,056		$	227,993		$	(89,919	)	$	188,192

XML

Segment Information (Tables)

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Schedule of analysis of business segment information and reconciliation

An analysis of our business segment information and reconciliation to the accompanying Condensed Consolidated Financial Statements is as follows:

	North American Records and Information Management Business		North American Data Management Business		Western European Business		Other International Business		Global Data Center Business		Corporate and Other Business			Total Consolidated
For the Three Months Ended June 30, 2019
Total Revenues	$	539,273	$	96,415	$	127,327	$	199,823	$	62,291	$	41,778		$	1,066,907
Storage Rental	313,355		66,750		78,554		128,898		60,582		21,149			669,288
Service	225,918		29,665		48,773		70,925		1,709		20,629			397,619
Depreciation and Amortization	62,691		10,100		14,328		30,760		32,671		13,781			164,331
Depreciation	46,655		7,818		10,476		17,833		19,027		11,913			113,722
Amortization	16,036		2,282		3,852		12,927		13,644		1,868			50,609
Adjusted EBITDA	245,585		53,068		44,163		58,749		27,641		(78,264		)	350,942
Expenditures for Segment Assets	46,545		5,254		24,334		18,829		102,477		12,805			210,244
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	28,596		5,254		22,724		11,955		101,032		12,805			182,366
Cash Paid for Acquisitions, Net of Cash Acquired	—		—		366		4,862		—		—			5,228
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs and third-party commissions	17,949		—		1,244		2,012		1,445		—			22,650
For the Three Months Ended June 30, 2018
Total Revenues	$	539,080	$	100,031	$	133,440	$	207,527	$	54,895	$	25,850		$	1,060,823
Storage Rental	305,895		68,808		82,439		129,611		51,945		16,741			655,439
Service	233,185		31,223		51,001		77,916		2,950		9,109			405,384
Depreciation and Amortization	60,970		9,538		17,500		30,364		22,503		15,345			156,220
Depreciation	48,252		7,217		11,821		18,199		13,120		12,892			111,501
Amortization	12,718		2,321		5,679		12,165		9,383		2,453			44,719
Adjusted EBITDA	244,861		55,280		46,594		60,452		24,901		(64,533		)	367,555
Expenditures for Segment Assets	41,364		3,643		27,559		30,287		265,173		11,052			379,078
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	25,122		3,643		25,096		13,921		43,162		11,052			121,996
Cash Paid for Acquisitions, Net of Cash Acquired	—		—		—		16,188		221,707		—			237,895
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs	16,242		—		2,463		178		304		—			19,187

	North American Records and Information Management Business		North American Data Management Business		Western European Business		Other International Business		Global Data Center Business		Corporate and Other Business			Total Consolidated
As of and for the Six Months Ended June 30, 2019
Total Revenues	$	1,066,653	$	193,162	$	256,080	$	400,779	$	123,827	$	80,269		$	2,120,770
Storage Rental	620,341		133,322		159,249		258,371		120,300		40,679			1,332,262
Service	446,312		59,840		96,831		142,408		3,527		39,590			788,508
Depreciation and Amortization	122,693		20,302		29,585		61,359		64,303		28,572			326,814
Depreciation	92,407		15,831		21,423		36,051		38,040		24,581			228,333
Amortization	30,286		4,471		8,162		25,308		26,263		3,991			98,481
Adjusted EBITDA	469,268		103,620		83,372		116,873		53,652		(151,337		)	675,448
Total Assets (1)	5,840,023		877,777		1,406,937		2,703,347		2,330,535		562,363			13,720,982
Expenditures for Segment Assets	102,810		10,886		54,435		50,083		256,182		27,948			502,344
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	57,284		10,886		24,840		27,104		222,589		24,428			367,131
Cash Paid for Acquisitions, Net of Cash Acquired	9,876		—		11,850		19,405		—		3,520			44,651
Acquisitions of Customer Relationships and Customer Inducements and Contract Fulfillment Costs and third-party commissions	35,650		—		17,745		3,574		33,593		—			90,562
As of and for the Six Months Ended June 30, 2018
Total Revenues	$	1,065,923	$	199,995	$	267,515	$	418,294	$	101,498	$	50,056		$	2,103,281
Storage Rental	610,714		138,054		166,391		261,358		97,440		32,631			1,306,588
Service	455,209		61,941		101,124		156,936		4,058		17,425			796,693
Depreciation and Amortization	123,722		19,642		35,056		62,237		44,771		31,370			316,798
Depreciation	97,390		15,240		24,579		37,263		24,500		25,961			224,933
Amortization	26,332		4,402		10,477		24,974		20,271		5,409			91,865
Adjusted EBITDA	470,599		109,132		90,560		121,199		45,691		(134,051		)	703,130
Total Assets (1)	5,010,186		829,682		1,344,699		2,247,071		1,909,088		476,433			11,817,159
Expenditures for Segment Assets	84,545		10,496		35,039		62,447		1,703,185		25,991			1,921,703
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	54,992		10,496		31,143		39,063		56,273		25,634			217,601
Cash Paid for Acquisitions, Net of Cash Acquired	1,551		—		—		19,396		1,645,922		—			1,666,869
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs	28,002		—		3,896		3,988		990		357			37,233

______________________________________________________________

(1)

Excludes all intercompany receivables or payables and investment in subsidiary balances. Total assets as of June 30, 2019 reflects the adoption of ASU 2016-02.

Schedule of reconciliation of Adjusted EBITDA to income from continuing operations

A reconciliation of Adjusted EBITDA to income (loss) from continuing operations on a consolidated basis for the three and six months ended June 30, 2019 and 2018 is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Adjusted EBITDA	$	350,942		$	367,555		$	675,448		$	703,130
(Add)/Deduct:
Provision (Benefit) for Income Taxes	10,646			26,057			21,199			25,934
Other (Income) Expense, Net	(15,192		)	(19,056		)	18			1,095
Interest Expense, Net	105,314			102,196			207,750			199,898
(Gain) loss on disposal/write-down of property, plant and equipment, net	(8,405		)	(546		)	(7,803		)	(1,676		)
Depreciation and Amortization	164,331			156,220			326,814			316,798
Significant Acquisition Costs(1)	1,901			10,421			4,647			29,429
Income (Loss) from Continuing Operations	$	92,347		$	92,263		$	122,823		$	131,652

_______________________________________________________________________________

(1) As defined in Note 9 to Notes to Consolidated Financial Statements included in our Annual Report.

Revenue from External Customers by Products and Services [Table Text Block]

Information as to our revenues by product and service lines by segment for the three and six months ended June 30, 2019 and 2018 are as follows:

	North American Records and Information Management Business		North American Data Management Business		Western European Business		Other International Business		Global Data Center Business		Corporate and Other Business		Total Consolidated
For the Three Months Ended June 30, 2019
Records Management(1)	$	442,785	$	—	$	109,369	$	172,433	$	—	$	26,195	$	750,782
Data Management(1)	—		93,152		16,908		18,787		—		15,583		144,430
Information Destruction(1)(2)	96,488		3,263		1,050		8,603		—		—		109,404
Data Center	—		—		—		—		62,291		—		62,291
Total Revenues	$	539,273	$	96,415	$	127,327	$	199,823	$	62,291	$	41,778	$	1,066,907
For the Three Months Ended June 30, 2018
Records Management(1)	$	441,401	$	—	$	113,925	$	179,194	$	—	$	11,801	$	746,321
Data Management(1)	—		97,768		19,393		19,227		—		14,049		150,437
Information Destruction(1)(2)	97,679		2,263		122		9,106		—		—		109,170
Data Center	—		—		—		—		54,895		—		54,895
Total Revenues	$	539,080	$	100,031	$	133,440	$	207,527	$	54,895	$	25,850	$	1,060,823
For the Six Months Ended June 30, 2019
Records Management(1)	$	870,152	$	—	$	218,076	$	345,410	$	—	$	50,540	$	1,484,178
Data Management(1)	—		187,141		36,794		38,014		—		29,729		291,678
Information Destruction(1)(2)	196,501		6,021		1,210		17,355		—		—		221,087
Data Center	—		—		—		—		123,827		—		123,827
Total Revenues	$	1,066,653	$	193,162	$	256,080	$	400,779	$	123,827	$	80,269	$	2,120,770
For the Six Months Ended June 30, 2018
Records Management(1)	$	876,403	$	—	$	227,684	$	360,524	$	—	$	22,205	$	1,486,816
Data Management(1)	—		195,362		39,612		39,705		—		27,851		302,530
Information Destruction(1)(2)	189,520		4,633		219		18,065		—		—		212,437
Data Center	—		—		—		—		101,498		—		101,498
Total Revenues	$	1,065,923	$	199,995	$	267,515	$	418,294	$	101,498	$	50,056	$	2,103,281

____________________________________________________________________________

(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.

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Stockholders' Equity Matters (Tables)

6 Months Ended

Jun. 30, 2019

Equity [Abstract]

Schedule of dividend declared and payments

In fiscal year 2018 and the first six months of 2019, our board of directors declared the following dividends:

Declaration Date	Dividend Per Share		Record Date	Total Amount		Payment Date
February 14, 2018	$	0.5875	March 15, 2018	$	167,969	April 2, 2018
May 24, 2018	0.5875		June 15, 2018	168,078		July 2, 2018
July 24, 2018	0.5875		September 17, 2018	168,148		October 2, 2018
October 25, 2018	0.6110		December 17, 2018	174,935		January 3, 2019
February 7, 2019	0.6110		March 15, 2019	175,242		April 2, 2019
May 22, 2019	0.6110		June 17, 2019	175,389		July 2, 2019

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Significant Acquisition Costs (Tables)

6 Months Ended

Jun. 30, 2019

Business Combinations [Abstract]

Acquisition costs Included in Statement of Operations

Significant Acquisition Costs included in the accompanying Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2019 and 2018 are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Cost of sales (excluding depreciation and amortization)	$	1,293	$	1,827	$	2,191	$	2,123
Selling, general and administrative expenses	608		8,594		2,456		27,306
Total Significant Acquisition Costs	$	1,901	$	10,421	$	4,647	$	29,429

Significant Acquisition Costs included in the accompanying Condensed Consolidated Statements of Operations by segment for the three and six months ended June 30, 2019 and 2018 are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
North American Records and Information Management Business	$	—	$	3,017	$	378	$	3,601
North American Data Management Business	—		351		—		351
Western European Business	81		1,427		81		3,579
Other International Business	951		896		1,453		1,433
Global Data Center Business	124		1,159		267		11,340
Corporate and Other Business	745		3,571		2,468		9,125
Total Significant Acquisition Costs	$	1,901	$	10,421	$	4,647	$	29,429

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Summary of Significant Accounting Policies - Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Cash and Cash Equivalents and Restricted Cash [Abstract]
Restricted cash	$ 9,059	$ 15,141

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Summary of Significant Accounting Policies - Schedule of Changes in Carrying Value of Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019 USD ($)
Gross amount of goodwill [Roll Forward]
Goodwill beginning balance	$ 4,441,030
Deductible goodwill acquired during the year	8,259
Non-deductible goodwill acquired during the year	11,302
Fair value and other adjustments	3,692
Currency effects	9,141
Goodwill ending balance	4,473,424
Accumulated goodwill impairment, beginning balance	135,420
Accumulated goodwill impairment, ending balance	135,420
Total fair value and other adjustments	3,755
Cash received	63
North American Records and Information Management Business
Gross amount of goodwill [Roll Forward]
Goodwill beginning balance	2,251,795
Deductible goodwill acquired during the year	5,501
Non-deductible goodwill acquired during the year	0
Fair value and other adjustments	55
Currency effects	7,704
Goodwill ending balance	2,265,055
Accumulated goodwill impairment, beginning balance	85,909
Accumulated goodwill impairment, ending balance	85,909
North American Data Management Business
Gross amount of goodwill [Roll Forward]
Goodwill beginning balance	493,491
Deductible goodwill acquired during the year	0
Non-deductible goodwill acquired during the year	0
Fair value and other adjustments	0
Currency effects	2,093
Goodwill ending balance	495,584
Accumulated goodwill impairment, beginning balance	0
Accumulated goodwill impairment, ending balance	0
Western European Business
Gross amount of goodwill [Roll Forward]
Goodwill beginning balance	381,806
Deductible goodwill acquired during the year	0
Non-deductible goodwill acquired during the year	5,011
Fair value and other adjustments	959
Currency effects	(2,851)
Goodwill ending balance	384,925
Accumulated goodwill impairment, beginning balance	46,500
Accumulated goodwill impairment, ending balance	46,500
Other International Business
Gross amount of goodwill [Roll Forward]
Goodwill beginning balance	818,223
Deductible goodwill acquired during the year	2,758
Non-deductible goodwill acquired during the year	4,387
Fair value and other adjustments	2,842
Currency effects	1,907
Goodwill ending balance	830,117
Accumulated goodwill impairment, beginning balance	0
Accumulated goodwill impairment, ending balance	0
Global Data Center Business
Gross amount of goodwill [Roll Forward]
Goodwill beginning balance	425,956
Deductible goodwill acquired during the year	0
Non-deductible goodwill acquired during the year	0
Fair value and other adjustments	258
Currency effects	193
Goodwill ending balance	426,407
Accumulated goodwill impairment, beginning balance	0
Accumulated goodwill impairment, ending balance	0
Corporate and Other Business
Gross amount of goodwill [Roll Forward]
Goodwill beginning balance	69,759
Deductible goodwill acquired during the year	0
Non-deductible goodwill acquired during the year	1,904
Fair value and other adjustments	(422)
Currency effects	95
Goodwill ending balance	71,336
Accumulated goodwill impairment, beginning balance	3,011
Accumulated goodwill impairment, ending balance	$ 3,011

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Summary of Significant Accounting Policies - Schedule of Components of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Assets:
Net Carrying Amount	$ 1,467,025	$ 1,506,522
Customer relationship intangible assets
Assets:
Gross Carrying Amount	1,766,769	1,718,919
Accumulated Amortization	(511,672)	(455,705)
Net Carrying Amount	1,255,097	1,263,214
Customer inducements
Assets:
Gross Carrying Amount	52,542	56,478
Accumulated Amortization	(29,091)	(34,181)
Net Carrying Amount	23,451	22,297
Data center lease-based intangible assets
Assets:
Gross Carrying Amount	266,263	271,818
Accumulated Amortization	(77,786)	(50,807)
Net Carrying Amount	188,477	221,011
Liabilities:
Gross Carrying Amount	12,765	12,318
Accumulated Amortization	(2,954)	(1,642)
Net Carrying Amount	9,811	10,676
Third-party commissions asset
Assets:
Gross Carrying Amount	31,391	30,071
Accumulated Amortization	(1,874)	(1,089)
Net Carrying Amount	29,517	28,982
Customer relationships, customer inducements and data center
Assets:
Gross Carrying Amount	2,116,965	2,077,286
Accumulated Amortization	(620,423)	(541,782)
Net Carrying Amount	$ 1,496,542	$ 1,535,504

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Summary of Significant Accounting Policies - Schedule Of Other Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	$ 1,467,025	$ 1,506,522
Other finite-lived intangible assets (included in Other, a component of other assets, net)
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	19,960	20,310
Accumulated Amortization	(16,482)	(14,798)
Net Carrying Amount	$ 3,478	$ 5,512

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Summary of Significant Accounting Policies - Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 50,609	$ 44,719	$ 98,481	$ 91,865
Customer relationship and customer inducement intangible assets
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	28,283	28,813	56,164	57,619
Data center in-place leases and tenant relationships
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	11,372	7,563	23,981	18,401
Third-party commissions asset and other finite-lived intangible assets
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	2,184	1,659	2,941	2,844
Customer inducements
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	2,598	2,968	5,338	5,553
Data center above-market leases and data center below-market leases
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 935	$ 1,293	$ 1,840	$ 2,372

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Summary of Significant Accounting Policies - Contract Fulfillment Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Intake Costs asset
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Gross Carrying Amount	$ 34,915	$ 39,748
Accumulated Amortization	(19,398)	(24,504)
Net Carrying Amount	15,517	15,244
Capitalized commissions asset
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Gross Carrying Amount	48,564	58,424
Accumulated Amortization	(17,895)	(34,637)
Net Carrying Amount	$ 30,669	$ 23,787

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Summary of Significant Accounting Policies - Amortization Expense Associated with Commissions Asset and Intake Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Intake Costs asset
Capitalized Contract Cost [Line Items]
Amortization expense	$ 2,835	$ 2,891	$ 5,514	$ 5,621
Capitalized commissions asset
Capitalized Contract Cost [Line Items]
Amortization expense	$ 5,935	$ 3,793	$ 9,881	$ 7,380

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Summary of Significant Accounting Policies - Summary of Deferred Revenue Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Deferred revenue	$ 268,779	$ 264,823
Other Long-term Liabilities	$ 25,436	$ 26,401

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Summary of Significant Accounting Policies - Revenue Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	$ 1,066,907	$ 1,060,823	$ 2,120,770	$ 2,103,281
Global Data Center Business
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	62,291	54,895	123,827	101,498
Storage rental
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	669,288	655,439	1,332,262	1,306,588
Storage rental | Global Data Center Business
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	60,582	$ 51,945	120,300	$ 97,440
Operating Segments | Storage Rental, Power And Connectivity | Global Data Center Business
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	$ 9,900		$ 19,000

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Summary of Significant Accounting Policies - Future Minimum Lease Payments (Details) - Operating Segments - Storage Rental, Power And Connectivity - Global Data Center Business $ in Thousands	Jun. 30, 2019 USD ($)
Segment Information [Line Items]
2019 (excluding the six months ended June 30, 2019)	$ 103,016
2020	155,581
2021	111,945
2022	79,763
2023	$ 61,684

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Summary of Significant Accounting Policies - Leases Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Lessee, Lease, Description [Line Items]
Sublease income	$ 1,671	$ 3,554
Accounting Standards Update 2016-02
Lessee, Lease, Description [Line Items]
Cumulative effect of new accounting principle in period of adoption			$ 5,800	$ 5,781
Maximum
Lessee, Lease, Description [Line Items]
Lessee, operating lease, term	10 years	10 years
Lessee, operating lease, renewal term	5 years	5 years
Maximum | Vehicle And Equipment
Lessee, Lease, Description [Line Items]
Lessee, operating lease, term	7 years	7 years
Minimum
Lessee, Lease, Description [Line Items]
Lessee, operating lease, term	5 years	5 years
Lessee, operating lease, renewal term	1 year	1 year
Minimum | Vehicle And Equipment
Lessee, Lease, Description [Line Items]
Lessee, operating lease, term	1 year	1 year

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Summary of Significant Accounting Policies - Supplemental Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Operating lease right-of-use assets	$ 1,793,807	$ 1,825,721	$ 0
Financing lease right-of-use assets, net of accumulated depreciation	344,320	361,078
Total	2,138,127	2,186,799
Current
Operating lease liabilities	212,968	209,911
Financing lease liabilities	50,116	50,437
Total current lease liabilities	263,084	260,348
Long-term
Operating lease liabilities	1,655,477	1,685,771	$ 0
Financing lease liabilities	331,233	350,263
Total long-term lease liabilities	1,986,710	2,036,034
Total	$ 2,249,794	$ 2,296,382
Operating lease, right-of-use asset, real estate assets, percent	98.00%
Operating lease, right-of-use asset, non-real estate assets, percent	2.00%
Finance lease, right-of-use asset, real estate assets, percent	62.00%
Finance lease, right-of-use asset, non-real estate assets, percent	38.00%

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Summary of Significant Accounting Policies - Leases Costs (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)
Lessee, Lease, Description [Line Items]
Operating lease cost	$ 113,392	$ 222,571
Depreciation of financing lease right-of-use assets	14,942	31,271
Interest expense for financing lease liabilities	4,925	11,067
Total financing lease cost	19,867	42,338
Variable lease costs	$ 23,847	$ 46,610
Operating leases, remaining lease term	11 years	11 years
Finance leases, remaining lease term	11 years	11 years
Operating leases, discount rate	7.10%	7.10%
Financing leases, discount rate	5.60%	5.60%
Cost of Sales
Lessee, Lease, Description [Line Items]
Operating lease cost	$ 110,441	$ 216,335
Selling, General and Administrative Expenses
Lessee, Lease, Description [Line Items]
Operating lease cost	$ 2,951	$ 6,236

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Summary of Significant Accounting Policies - Estimated Future Lease Payments (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Leases, Operating [Abstract]
2019	$ 171,378
2020	321,670
2021	295,696
2022	271,552
2023	246,252
Thereafter	1,482,286
Total minimum lease payments	2,788,834
Less amounts representing interest or imputed interest	(920,389)
Present value of lease obligations	1,868,445
2019		$ 323,454
2020		293,276
2021		267,379
2022		246,128
2023		221,808
Thereafter		1,287,807
Total minimum lease payments		2,639,852
Lessee, Finance Sublease, Description [Abstract]
2019	(3,494)	(7,525)
2020	(5,728)	(7,200)
2021	(4,828)	(7,063)
2022	(4,462)	(6,694)
2023	(4,333)	(6,409)
Thereafter	(10,185)	(6,279)
Total minimum lease payments	(33,030)	(41,170)
Capital Lease Obligations [Abstract]
2019	40,635
2020	60,377
2021	54,766
2022	48,071
2023	40,351
Thereafter	296,260
Total minimum lease payments	540,460
Less amounts representing interest	(159,111)
Present value of lease obligations	$ 381,349
2019		80,513
2020		71,335
2021		61,269
2022		52,832
2023		44,722
Thereafter		377,750
Total minimum lease payments		688,421
Less amounts representing interest or imputed interest		(241,248)
Present value of lease obligations		$ 447,173

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Summary of Significant Accounting Policies - Supplemental Cash Flows (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019 USD ($)
Accounting Policies [Abstract]
Operating cash flows used in operating leases	$ 167,426
Financing cash flows used in financing leases	31,146
Operating lease modifications and reassessments	14,024
New operating leases (including acquisitions)	87,482
New financing leases, modifications and reassessments	$ 13,662

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Summary of Significant Accounting Policies - Stock-Based Compensation Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Employee Stock-Based Awards
Expiration period			3 years
Stock-based compensation	$ 12,501	$ 8,689	$ 21,020	$ 16,073
Stock-based compensation expense (income), net of tax	$ 11,649	$ 8,032	$ 19,585	$ 14,865
Stock-based compensation expense per basic and diluted share (in dollars per share)	$ 0.04	$ 0.03	$ 0.07
Employee stock-based awards, unrecognized compensation costs on nonvested awards	$ 61,833		$ 61,833
Employee stock-based awards, unrecognized compensation costs on nonvested awards, weighted average period of recognition			2 years 1 month 6 days
Stock Options
Employee Stock-Based Awards
Stock-based compensation expense per basic and diluted share (in dollars per share)				$ 0.05
Summary of Option Activity
Options outstanding balance, beginning of period (in shares)			4,271,834
Options granted (in shares)			920,706
Options exercised (in shares)			(194,480)
Options forfeited (in shares)			(12,525)
Options expired (in shares)			(15,647)
Options outstanding balance, end of period (in shares)	4,969,888		4,969,888
Options exercisable balance (in shares)	3,160,175		3,160,175
Options expected to vest (in shares)	1,704,441		1,704,441
Restricted Stock Units
Summary of Option Activity
Total fair value of shares or units vested	$ 2,375	$ 676	$ 17,710	$ 16,006
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options
Non-vested at the beginning of the period (in shares)			1,196,566
Granted (in shares)			731,801
Vested (in shares)			(527,239)
Forfeited (in shares)			(55,070)
Non-vested at the end of the period (in shares)	1,346,058		1,346,058
Performance units
Summary of Option Activity
Total fair value of shares or units vested	$ 0	$ 0	$ 6,503	$ 3,033
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options
Non-vested at the beginning of the period (in shares)			667,101
Granted (in shares)			380,856
Vested (in shares)			(169,523)
Forfeited (in shares)			(25,943)
Non-vested at the end of the period (in shares)	852,491		852,491
Performance units | Two Thousand Seventeen
Performance Units Disclosure
Percentage of achievement of the predefined revenue and ROIC targets	100.00%		100.00%
Performance units | Two Thousand Eighteen
Performance Units Disclosure
Percentage of achievement of the predefined revenue and ROIC targets	100.00%		100.00%
Performance units | Two Thousand Nineteen
Performance Units Disclosure
Percentage of achievement of the predefined revenue and ROIC targets	100.00%		100.00%
Original PU Awards
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options
Non-vested at the beginning of the period (in shares)			967,049
Granted (in shares)			380,856
Vested (in shares)			(169,523)
Forfeited (in shares)			(11,093)
Non-vested at the end of the period (in shares)	1,167,289		1,167,289
PUs Adjustment
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options
Non-vested at the beginning of the period (in shares)			299,948
Granted (in shares)			0
Vested (in shares)			0
Forfeited (in shares)			(14,850)
Non-vested at the end of the period (in shares)	314,798		314,798

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Summary of Significant Accounting Policies - Income Per Share, Allowance for Doubtful Accounts, Income Taxes, and Concentration of Credit Risk (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income (Loss) Per Share-Basic and Diluted
Income (loss) from continuing operations	$ 92,347	$ 92,263	$ 122,823	$ 131,652
Less: Net Income (Loss) Attributable to Noncontrolling Interests	34	142	925	610
Income (loss) from continuing operations (utilized in numerator of Earnings Per Share calculation)	92,313	92,121	121,898	131,042
Income (loss) from discontinued operations, net of tax	128	(360)	104	(822)
Net Income (Loss) Attributable to Iron Mountain Incorporated	$ 92,441	$ 91,761	$ 122,002	$ 130,220
Weighted-average shares—basic (in shares)	286,925,000	285,984,000	286,727,000	285,622,000
Effect of dilutive potential stock options (in shares)	148,629	237,708	190,016	243,636
Effect of dilutive potential restricted stock, RSUs and PUs (in shares)	407,659	347,543	570,040	415,929
Weighted-average shares—diluted (in shares)	287,481,288	286,569,251	287,487,056	286,281,565
Earnings (losses) per share—basic:
Income (loss) from continuing operations (in dollars per share)	$ 0.32	$ 0.32	$ 0.43	$ 0.46
Income (loss) from discontinued operations, net of tax (in dollars per share)	0	0	0	0
Net income (loss) attributable to Iron Mountain Incorporated (in dollars per share)	0.32	0.32	0.43	0.46
Earnings (losses) per share—diluted:
Income (loss) from continuing operations (in dollars per share)	0.32	0.32	0.42	0.46
Income (loss) from discontinued operations, net of tax (in dollars per share)	0	0	0	0
Net income (loss) attributable to Iron Mountain Incorporated (in dollars per share)	$ 0.32	$ 0.32	$ 0.42	$ 0.45
Antidilutive stock options, RSUs and PUs, excluded from the calculation (in shares)	5,004,112	3,272,502	4,494,637	3,257,322

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Summary of Significant Accounting Policies - Effective Income Tax Rates (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Accounting Policies [Abstract]
Effective Tax Rate	10.30%	22.00%	14.70%	16.50%
Federal statutory tax rate			21.00%	21.00%
Discrete tax benefit				$ 14,000

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Summary of Significant Accounting Policies - Fair Value Measurements (Details) € in Thousands	Jun. 30, 2019 USD ($)	Jun. 30, 2019 EUR (€)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 EUR (€)	Jun. 30, 2018 EUR (€)
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items]
Derivative, amount of hedged item | €		€ 274,161			€ 179,881
Fair value measured on recurring basis | Quoted prices in active markets (Level 1)
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items]
Money Market Funds	$ 0
Time Deposits			$ 0
Trading securities	9,744,000		10,248,000
Derivative Assets			0
Interest Rate Swap Agreements Liabilities	0		0
Fair value measured on recurring basis | Significant other observable inputs (Level 2)
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items]
Money Market Funds	4,418,000
Time Deposits			956,000
Trading securities	622,000		505,000
Derivative Assets			93,000
Interest Rate Swap Agreements Liabilities	8,578,000		973,000
Fair value measured on recurring basis | Significant unobservable inputs (Level 3)
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items]
Money Market Funds	0
Time Deposits			0
Trading securities	0		0
Derivative Assets			0
Interest Rate Swap Agreements Liabilities	0		0
Estimate of Fair Value Measurement | Fair value measured on recurring basis
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items]
Money Market Funds	4,418,000
Time Deposits			956,000
Trading securities	10,366,000		10,753,000
Derivative Assets			93,000
Interest Rate Swap Agreements Liabilities	8,578,000		973,000
Designated as Hedging Instrument | Interest Rate Swap
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items]
Notional amount of derivatives	$ 350,000,000		350,000,000
Long | Foreign exchange contracts
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items]
Notional amount of derivatives | €				€ 29,000
Short | Foreign exchange contracts
Assets and Liabilities Carried at Fair Value Measured on a Recurring Basis [Line Items]
Derivative, amount of hedged item			$ 33,374,000

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Summary of Significant Accounting Policies - Accumulated Other Comprehensive Income and Other Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
AOCI Rollforward
Beginning of Period			$ 1,861,054
Other comprehensive (loss) income:
Fair value adjustments for interest rate swap agreements	$ (4,931)	$ 2,388	(7,605)	$ 2,203
End of Period	1,657,821		1,657,821
Foreign Currency Translation Adjustments
AOCI Rollforward
Beginning of Period	(247,313)	(73,897)	(264,691)	(103,989)
Other comprehensive (loss) income:
Foreign currency translation adjustments	(5,930)	(135,756)	11,448	(105,664)
Fair value adjustments for interest rate swap agreements	0	0	0	0
Total other comprehensive (loss) income	(5,930)	(135,756)	11,448	(105,664)
End of Period	(253,243)	(209,653)	(253,243)	(209,653)
Fair Value Adjustments for Interest Rate Swap Agreements
AOCI Rollforward
Beginning of Period	(3,647)	(185)	(973)	0
Other comprehensive (loss) income:
Foreign currency translation adjustments	0	0	0	0
Fair value adjustments for interest rate swap agreements	(4,931)	2,388	(7,605)	2,203
Total other comprehensive (loss) income	(4,931)	2,388	(7,605)	2,203
End of Period	(8,578)	2,203	(8,578)	2,203
Total
AOCI Rollforward
Beginning of Period	(250,960)	(74,082)	(265,664)	(103,989)
Other comprehensive (loss) income:
Foreign currency translation adjustments	(5,930)	(135,756)	11,448	(105,664)
Fair value adjustments for interest rate swap agreements	(4,931)	2,388	(7,605)	2,203
Total other comprehensive (loss) income	(10,861)	(133,368)	3,843	(103,461)
End of Period	$ (261,821)	$ (207,450)	$ (261,821)	$ (207,450)

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Summary of Significant Accounting Policies - AOCI Foreign Exchange (Details) € in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2019 EUR (€)	Jun. 30, 2018 EUR (€)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Derivative, amount of hedged item (in Euros) | €					€ 274,161	€ 179,881
Senior Notes
Accumulated Other Comprehensive Income (Loss) [Line Items]
Foreign currency translation adjustments gains (losses)	$ (4,280)	$ 10,257	$ 1,861	$ 4,622
Net Investment Hedging [Member] | Senior Notes
Accumulated Other Comprehensive Income (Loss) [Line Items]
Foreign currency translation adjustments gains (losses)			$ 16,119

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Summary of Significant Accounting Policies - Gain on Disposal/Write-Down of Property, Plant and Equipment, (net) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Impairment of long lived assets	$ 24,000
Gain loss on disposal/write-down of property, plant and equipment, net	$ 8,405	$ 546	$ 7,803	$ 1,676
United Kingdom | Disposed of by sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale of real estate, net of tax			36,000
North American Records and Information Management Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Impairment of long lived assets			$ 3,100

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Summary of Significant Accounting Policies - Other Expense (Income), Net - Foreign Currency Transactions (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Foreign currency transaction (gains) losses, net	$ (19,331)		$ (18,624)	$ (1,634)	$ 3,161
Other, net	4,139		(432)	1,652	(2,066)
Total	$ (15,192)		$ (19,056)	$ 18	$ 1,095
Disposal Group, Not Discontinued Operations | Consumer Storage
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Gain on Disposal		$ 4,200

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Summary of Significant Accounting Policies - Correction in Presentation (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Sep. 30, 2018
Accounting Policies [Abstract]
Gain on sale of real estate	$ 55,000	$ 55,000

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Summary of Significant Accounting Policies - Immaterial Restatement Narrative (Details) € in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2019 EUR (€)	Mar. 31, 2019 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)
Error Corrections and Prior Period Adjustments Restatement [Line Items]
(Distributions in excess of earnings) Earnings in excess of distributions	$ (2,139,493)		$ (2,364,812)
Foreign | Tax and Customs Administration, Netherlands
Error Corrections and Prior Period Adjustments Restatement [Line Items]
VAT liability | €				€ 16,800
Selling, General and Administrative Expenses
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Overstated (understated) misstatement amount	(11,000)	$ (16,600)
Interest Expense
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Overstated (understated) misstatement amount	(400)	(100)
Provision for Income Taxes
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Overstated (understated) misstatement amount	2,000	3,000
Net Income from Continuing Operations
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Overstated (understated) misstatement amount	(9,400)	(13,700)
Restatement
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Retained earnings	23,100
(Distributions in excess of earnings) Earnings in excess of distributions	$ (23,126)	$ (13,708)			$ (23,126)	$ (21,573)	$ (19,933)

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Summary of Significant Accounting Policies - Immaterial Restatements (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Selling, general and administrative	$ 252,764	$ 252,225	$ 523,323	$ 529,395
Total Operating Expenses	873,792	859,363	1,768,980	1,744,702
Operating Income (Loss)	193,115	201,460	351,790	358,579
Interest Expense, Net	(105,314)	(102,196)	(207,750)	(199,898)
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes	102,993	118,320	144,022	157,586
Provision (Benefit) for Income Taxes	10,646	26,057	21,199	25,934
Income (Loss) from Continuing Operations	92,347	92,263	122,823	131,652
Net Income (Loss)	92,475	91,903	122,927	130,830
Net Income (Loss) Attributable to Iron Mountain Incorporated	$ 92,441	$ 91,761	$ 122,002	$ 130,220
Income (Loss) from Continuing Operations (in dollars per share)	$ 0.32	$ 0.32	$ 0.43	$ 0.46
Net Income (Loss) Attributable to Iron Mountain Incorporated (in dollars per share)	0.32	0.32	0.43	0.46
Income (Loss) from Continuing Operations (in dollars per share)	0.32	0.32	0.42	0.46
Net Income (Loss) Attributable to Iron Mountain Incorporated (in dollars per share)	$ 0.32	$ 0.32	$ 0.42	$ 0.45
Total Other Assets, Net	$ 7,947,320		$ 7,947,320			$ 6,159,547
Total Assets	13,720,982	$ 11,817,159	13,720,982	$ 11,817,159		11,857,218
Accrued expenses and other current liabilities	920,493		920,493			780,781
Total Current Liabilities	1,616,787		1,616,787			1,490,775
(Distributions in excess of earnings) Earnings in excess of distributions	(2,364,812)		(2,364,812)			(2,139,493)
Total Iron Mountain Incorporated Stockholders' Equity	$ 1,657,821		$ 1,657,821			1,861,054
Restatement
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Selling, general and administrative		1,899		9,339
Total Operating Expenses		1,899		9,339
Operating Income (Loss)		(1,899)		(9,339)
Interest Expense, Net		89		165
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes		(1,988)		(9,504)
Provision (Benefit) for Income Taxes		(348)		(1,639)
Income (Loss) from Continuing Operations		(1,640)		(7,865)
Net Income (Loss)		(1,640)		(7,865)
Net Income (Loss) Attributable to Iron Mountain Incorporated		$ (1,640)		$ (7,865)
Income (Loss) from Continuing Operations (in dollars per share)		$ (0.01)		$ (0.03)
Net Income (Loss) Attributable to Iron Mountain Incorporated (in dollars per share)		(0.01)		(0.03)
Income (Loss) from Continuing Operations (in dollars per share)		(0.01)		(0.03)
Net Income (Loss) Attributable to Iron Mountain Incorporated (in dollars per share)		$ (0.01)		$ (0.03)
Total Other Assets, Net						4,971
Total Assets						4,971
Accrued expenses and other current liabilities						28,097
Total Current Liabilities						28,097
(Distributions in excess of earnings) Earnings in excess of distributions		$ (21,573)		$ (21,573)	$ (23,126)	(23,126)	$ (19,933)	$ (13,708)
Total Iron Mountain Incorporated Stockholders' Equity						$ (23,126)

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Acquisitions - Narrative (Details) $ in Thousands		1 Months Ended	6 Months Ended
	Jan. 10, 2018 USD ($)	Feb. 28, 2019 USD ($)	Jun. 30, 2019 USD ($) company
Storage and Data Management Company
Business Acquisition [Line Items]
Number of businesses acquired | company			6
Art Storage Company
Business Acquisition [Line Items]
Number of businesses acquired | company			1
Storage, Records Management and Art Storage Companies
Business Acquisition [Line Items]
Cash consideration			$ 36,800
IO Data Center LLC
Business Acquisition [Line Items]
Consideration transferred	$ 1,347,000	$ 31,000
Business combination separately recognized transactions expenses and losses recognized, acquisition costs incurred to date			$ 28,064

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Acquisitions - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jan. 01, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Purchase Price Holdbacks and Other	$ 2,394	$ 26,089
Fair Value of Identifiable Assets Acquired:
Operating Lease Right-of-Use Assets	1,793,807		$ 1,825,721	$ 0
Operating Lease Liabilities	(1,655,477)		$ (1,685,771)	0
Goodwill Initially Recorded	4,473,424			$ 4,441,030
2019 Acquisitions
Business Acquisition [Line Items]
Cash Paid (gross of cash acquired)	39,072
Purchase Price Holdbacks and Other	2,394
Total Consideration	41,466
Fair Value of Identifiable Assets Acquired:
Cash	2,285
Accounts Receivable, Prepaid Expenses and Other Assets	3,164
Property, Plant and Equipment	4,538
Customer Relationship Intangible Assets	15,670
Operating Lease Right-of-Use Assets	13,256
Accounts Payable, Accrued Expenses and Other Liabilities	(2,124)
Operating Lease Liabilities	(13,256)
Deferred Income Taxes	(1,628)
Total Fair Value of Identifiable Net Assets Acquired	21,905
Goodwill Initially Recorded	19,561
Net cash acquired	2,285
Payments for previous acquisitions	$ 7,864

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Acquisitions - Pro Forma Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Business Combinations [Abstract]
Total Revenues	$ 1,060,823	$ 2,106,771
Income from Continuing Operations	$ 92,263	$ 141,604
Per Share Income from Continuing Operations - Basic (in dollars per share)	$ 0.32	$ 0.49
Per Share Income from Continuing Operations - Diluted (in dollars per share)	$ 0.32	$ 0.49

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Debt - Schedule of Long Term Debt (Details) € in Thousands, $ in Thousands, $ in Thousands, $ in Thousands	Jun. 30, 2019 USD ($)	Jun. 30, 2019 CAD ($)	Jun. 30, 2019 AUD ($)	Jun. 30, 2019 EUR (€)	Dec. 31, 2018 USD ($)	Mar. 22, 2018 USD ($)
Debt Instrument [Line Items]
Debt (inclusive of discount)	$ 8,592,918				$ 8,229,430
Long-term debt, gross, current maturities	(123,527)				(126,406)
Long term debt, gross, net of current portion	8,469,391				8,103,024
Unamortized Deferred Financing Costs	(79,208)				(86,607)
Unamortized debt issuance expense, current	0				0
Unamortized debt issuance expense, net	(79,208)				(86,607)
Carrying Amount	8,513,710				8,142,823
Carrying Amount, current maturities	(123,527)				(126,406)
Carrying Amount, excluding current maturities	8,390,183				8,016,417
Revolving Credit Facility
Debt Instrument [Line Items]
Letters of credit outstanding	35,250
Remaining capacity	533,374
Australian Dollar Term Loan
Debt Instrument [Line Items]
Debt (inclusive of discount)	230,048				233,955
Unamortized Deferred Financing Costs	(2,691)				(3,084)
Carrying Amount	227,357		$ 329,688		230,871
Fair Value	$ 231,506				235,645
Average interest rate (as a percent)	5.10%	5.10%	5.10%	5.10%
Debt instrument, unamortized discount	$ 1,458				1,690
Senior Notes 4.375 Percent due 2021
Debt Instrument [Line Items]
Debt (inclusive of discount)	500,000				500,000
Unamortized Deferred Financing Costs	(3,295)				(4,155)
Carrying Amount	496,705				495,845
Fair Value	$ 505,000				488,750
Stated interest rate (as a percent)	4.375%	4.375%	4.375%	4.375%
6% Notes
Debt Instrument [Line Items]
Debt (inclusive of discount)	$ 600,000				600,000
Unamortized Deferred Financing Costs	(4,576)				(5,126)
Carrying Amount	595,424				594,874
Fair Value	$ 612,000				606,000
Stated interest rate (as a percent)	6.00%	6.00%	6.00%	6.00%
CAD 5.375 Percent Senior Notes due 2023
Debt Instrument [Line Items]
Debt (inclusive of discount)	$ 190,972				183,403
Unamortized Deferred Financing Costs	(2,335)				(2,506)
Carrying Amount	188,637				180,897
Fair Value	$ 192,882				186,154
Stated interest rate (as a percent)	5.375%	5.375%	5.375%	5.375%
The 5 3/4% Notes
Debt Instrument [Line Items]
Debt (inclusive of discount)	$ 1,000,000				1,000,000
Unamortized Deferred Financing Costs	(7,096)				(7,782)
Carrying Amount	992,904				992,218
Fair Value	$ 1,010,000				940,000
Stated interest rate (as a percent)	5.75%	5.75%	5.75%	5.75%
Euro Notes 3 Percent due 2025
Debt Instrument [Line Items]
Debt (inclusive of discount)	$ 341,128				343,347
Unamortized Deferred Financing Costs	(3,781)				(4,098)
Carrying Amount	337,347				339,249
Fair Value	$ 351,113				321,029
Stated interest rate (as a percent)	3.00%	3.00%	3.00%	3.00%
GBP Notes due 2025 3.875 Percent
Debt Instrument [Line Items]
Debt (inclusive of discount)	$ 507,891				509,425
Unamortized Deferred Financing Costs	(6,074)				(6,573)
Carrying Amount	501,817				502,852
Fair Value	$ 502,192				453,811
Stated interest rate (as a percent)	3.875%	3.875%	3.875%	3.875%
Senior Notes 5.375 Percent due 2026
Debt Instrument [Line Items]
Debt (inclusive of discount)	$ 250,000				250,000
Unamortized Deferred Financing Costs	(2,971)				(3,185)
Carrying Amount	247,029				246,815
Fair Value	$ 252,500				224,375
Stated interest rate (as a percent)	5.375%	5.375%	5.375%	5.375%
Senior Notes 4.875 Percent due 2027
Debt Instrument [Line Items]
Debt (inclusive of discount)	$ 1,000,000				1,000,000
Unamortized Deferred Financing Costs	(11,731)				(12,442)
Carrying Amount	988,269				987,558
Fair Value	$ 990,000				855,000
Stated interest rate (as a percent)	4.875%	4.875%	4.875%	4.875%
Senior Notes due 2028 5.25 Percent
Debt Instrument [Line Items]
Debt (inclusive of discount)	$ 825,000				825,000
Unamortized Deferred Financing Costs	(10,333)				(10,923)
Carrying Amount	814,667				814,077
Fair Value	$ 825,000				713,625
Stated interest rate (as a percent)	5.25%	5.25%	5.25%	5.25%
Real Estate Mortgages, Capital Leases and Other
Debt Instrument [Line Items]
Debt (inclusive of discount)	$ 559,622				606,702
Unamortized Deferred Financing Costs	(425)				(171)
Carrying Amount	559,197				606,531
Fair Value	559,622				606,702
Accounts Receivable Securitization Program
Debt Instrument [Line Items]
Debt (inclusive of discount)	254,962				221,673
Unamortized Deferred Financing Costs	(149)				(218)
Carrying Amount	254,813				221,455
Fair Value	$ 254,962				221,673
Average interest rate (as a percent)	3.40%	3.40%	3.40%	3.40%
Mortgage Securitization Program
Debt Instrument [Line Items]
Debt (inclusive of discount)	$ 50,000				50,000
Unamortized Deferred Financing Costs	(1,055)				(1,128)
Carrying Amount	48,945				48,872
Fair Value	$ 50,000				50,000
Average interest rate (as a percent)	3.50%	3.50%	3.50%	3.50%
New Credit Agreement
Debt Instrument [Line Items]
Average interest rate (as a percent)	4.00%	4.00%	4.00%	4.00%
New Credit Agreement | Revolving Credit Facility
Debt Instrument [Line Items]
Debt (inclusive of discount)	$ 1,181,376				793,832
Unamortized Deferred Financing Costs	(12,548)				(14,117)
Carrying Amount	1,168,828				779,715
Fair Value	$ 1,181,376				793,832
Average interest rate (as a percent)	4.00%	4.00%	4.00%	4.00%
Term Loan A | Term Loan Facility
Debt Instrument [Line Items]
Debt (inclusive of discount)	$ 234,375				240,625
Unamortized Deferred Financing Costs	0				0
Carrying Amount	234,375				240,625
Fair Value	$ 234,375				240,625
Average interest rate (as a percent)	4.20%	4.20%	4.20%	4.20%
Term Loan B | Term Loan Facility
Debt Instrument [Line Items]
Debt (inclusive of discount)	$ 689,782				693,169
Unamortized Deferred Financing Costs	(8,118)				(8,742)
Carrying Amount	681,664				684,427
Fair Value	$ 668,784				660,013
Average interest rate (as a percent)	4.20%	4.20%	4.20%	4.20%
Debt instrument, unamortized discount	$ 1,468				1,581
UK Bilateral Revolving Credit Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Debt (inclusive of discount)	177,762				178,299
Unamortized Deferred Financing Costs	(2,030)				(2,357)
Carrying Amount	175,732				175,942
Fair Value	$ 177,762				$ 178,299
Line of credit facility, interest rate at period end	3.10%	3.10%	3.10%	3.10%
Term Loan Facility | Term Loan B | Loans Payable
Debt Instrument [Line Items]
Maximum borrowing capacity						$ 700,000
US Dollars | New Credit Agreement | Term Loan Facility
Debt Instrument [Line Items]
Debt (inclusive of discount)	$ 1,028,900
Canadian dollars | New Credit Agreement | Term Loan Facility
Debt Instrument [Line Items]
Debt (inclusive of discount)		$ 76,800
Euro | New Credit Agreement | Term Loan Facility
Debt Instrument [Line Items]
Debt (inclusive of discount) | €				€ 82,500

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Debt - Cash Pool (Details) $ in Thousands	Jun. 30, 2019 USD ($) cash_pool	Dec. 31, 2018 USD ($)
Debt Instrument [Line Items]
Number of cash pools | cash_pool	2
QRS Cash Pool
Debt Instrument [Line Items]
Number of cash pools | cash_pool	1
Gross Cash Position	$ 308,200	$ 300,800
Outstanding Debit Balances	(306,500)	(298,800)
Net Cash Position	$ 1,700	2,000
TRS Cash Pool
Debt Instrument [Line Items]
Number of cash pools | cash_pool	1
Gross Cash Position	$ 295,500	281,500
Outstanding Debit Balances	(292,700)	(279,300)
Net Cash Position	$ 2,800	$ 2,200

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Debt - Covenant Ratios (Details)	Jun. 30, 2019	Dec. 31, 2018
Credit Agreement
Debt Instrument [Line Items]
Net total lease adjusted leverage ratio	5.8	5.6
Net secured debt lease adjusted leverage ratio	2.8	2.6
Bond leverage ratio (not lease adjusted)	6.1	5.8
Fixed charge coverage ratio	2.2	2.2
Credit Agreement | Maximum
Debt Instrument [Line Items]
Net total lease adjusted leverage ratio	6.5
Net secured debt lease adjusted leverage ratio	4.0
Bond leverage ratio (not lease adjusted)	7.0
Credit Agreement | Minimum
Debt Instrument [Line Items]
Bond leverage ratio (not lease adjusted)	6.5
Fixed charge coverage ratio	1.5
Senior Notes | Maximum
Debt Instrument [Line Items]
Bond leverage ratio (not lease adjusted)	6.5
Senior Notes 4.875 Percent due 2027, GBP Notes due 2025 and 5.25 Percent Notes
Debt Instrument [Line Items]
Debt instrument covenant, indenture, leverage ratio maximum	7.0

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Selected Consolidated Financial Statements of Parent, Guarantors and Non-Guarantors - Narrative (Details) - 5.375% Senior Notes	Jun. 30, 2019
Guarantors
Debt Instrument [Line Items]
Stated interest rate (as a percent)	5.375%
Non- Guarantors
Debt Instrument [Line Items]
Stated interest rate (as a percent)	5.375%

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Selected Consolidated Financial Statements of Parent, Guarantors and Non-Guarantors - Balance Sheets (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Current Assets:
Cash and cash equivalents	$ 161,996			$ 165,485
Accounts receivable	852,330			846,889
Intercompany receivable	0			0
Prepaid expenses and other	200,777			195,740
Total Current Assets	1,215,103			1,208,114
Property, Plant and Equipment, Net	4,558,559			4,489,557
Other Assets, Net:
Long-term notes receivable from affiliates and intercompany receivable	0			0
Investment in subsidiaries	0			0
Goodwill	4,473,424			4,441,030
Operating lease right-of-use assets (see Note 2.d.)	1,793,807		$ 1,825,721	0
Other	1,680,089			1,718,517
Total Other Assets, Net	7,947,320			6,159,547
Total Assets	13,720,982			11,857,218	$ 11,817,159
Liabilities and Equity
Intercompany Payable	0			0
Debit Balances Under Cash Pools	0			0
Current Portion of Long-Term Debt	123,527			126,406
Total Other Current Liabilities (includes current portion of operating lease liabilities)	1,493,260			1,364,369
Long-Term Debt, Net of Current Portion	8,390,183			8,016,417
Long-term Operating Lease Liabilities, net of current portion (see Note 2.d.)	1,655,477		$ 1,685,771	0
Long-Term Notes Payable to Affiliates and Intercompany Payable	0			0
Other Long-term Liabilities	326,441			417,031
Redeemable Noncontrolling Interests	73,113			70,532
Total Iron Mountain Incorporated Stockholders' Equity	1,657,821			1,861,054
Noncontrolling Interests	1,160			1,409
Total Equity	1,658,981	$ 1,737,608		1,862,463	$ 2,035,874	$ 2,241,342	$ 2,285,134
Total Liabilities and Equity	13,720,982			11,857,218
Eliminations
Current Assets:
Cash and cash equivalents	(69,486)			(65,615)
Accounts receivable	0			0
Intercompany receivable	(1,184,345)			(818,463)
Prepaid expenses and other	(29)			(29)
Total Current Assets	(1,253,860)			(884,107)
Property, Plant and Equipment, Net	0			0
Other Assets, Net:
Long-term notes receivable from affiliates and intercompany receivable	(5,072,926)			(4,954,686)
Investment in subsidiaries	(3,055,929)			(2,845,066)
Goodwill	0			0
Operating lease right-of-use assets (see Note 2.d.)	0
Other	0			0
Total Other Assets, Net	(8,128,855)			(7,799,752)
Total Assets	(9,382,715)			(8,683,859)
Liabilities and Equity
Intercompany Payable	(1,184,345)			(818,463)
Debit Balances Under Cash Pools	(69,486)			(65,615)
Current Portion of Long-Term Debt	(29)			(29)
Total Other Current Liabilities (includes current portion of operating lease liabilities)	0			0
Long-Term Debt, Net of Current Portion	0			0
Long-term Operating Lease Liabilities, net of current portion (see Note 2.d.)	0
Long-Term Notes Payable to Affiliates and Intercompany Payable	(5,072,926)			(4,954,686)
Other Long-term Liabilities	0			0
Redeemable Noncontrolling Interests	0			0
Total Iron Mountain Incorporated Stockholders' Equity	(3,055,929)			(2,845,066)
Noncontrolling Interests	0			0
Total Equity	(3,055,929)			(2,845,066)
Total Liabilities and Equity	(9,382,715)			(8,683,859)
Parent | Reportable legal entities
Current Assets:
Cash and cash equivalents	6			132
Accounts receivable	0			0
Intercompany receivable	0			0
Prepaid expenses and other	0			93
Total Current Assets	6			225
Property, Plant and Equipment, Net	145			190
Other Assets, Net:
Long-term notes receivable from affiliates and intercompany receivable	5,072,926			4,954,686
Investment in subsidiaries	1,982,052			1,862,048
Goodwill	0			0
Operating lease right-of-use assets (see Note 2.d.)	0
Other	2			0
Total Other Assets, Net	7,054,980			6,816,734
Total Assets	7,055,131			6,817,149
Liabilities and Equity
Intercompany Payable	892,894			462,927
Debit Balances Under Cash Pools	0			0
Current Portion of Long-Term Debt	0			0
Total Other Current Liabilities (includes current portion of operating lease liabilities)	270,521			268,373
Long-Term Debt, Net of Current Portion	4,225,317			4,223,822
Long-term Operating Lease Liabilities, net of current portion (see Note 2.d.)	0
Long-Term Notes Payable to Affiliates and Intercompany Payable	0			0
Other Long-term Liabilities	8,578			973
Redeemable Noncontrolling Interests	0			0
Total Iron Mountain Incorporated Stockholders' Equity	1,657,821			1,861,054
Noncontrolling Interests	0			0
Total Equity	1,657,821			1,861,054
Total Liabilities and Equity	7,055,131			6,817,149
Guarantors
Current Assets:
Deposits	74,000			57,200
Guarantors | Reportable legal entities
Current Assets:
Cash and cash equivalents	124,553			61,650
Accounts receivable	65,357			47,900
Intercompany receivable	1,184,345			818,463
Prepaid expenses and other	87,505			108,879
Total Current Assets	1,461,760			1,036,892
Property, Plant and Equipment, Net	3,013,538			3,002,104
Other Assets, Net:
Long-term notes receivable from affiliates and intercompany receivable	0			0
Investment in subsidiaries	1,073,877			983,018
Goodwill	2,857,968			2,858,539
Operating lease right-of-use assets (see Note 2.d.)	921,540
Other	965,060			979,483
Total Other Assets, Net	5,818,445			4,821,040
Total Assets	10,293,743			8,860,036
Liabilities and Equity
Intercompany Payable	0			0
Debit Balances Under Cash Pools	0			10,612
Current Portion of Long-Term Debt	54,848			63,703
Total Other Current Liabilities (includes current portion of operating lease liabilities)	679,750			616,826
Long-Term Debt, Net of Current Portion	2,265,699			1,877,649
Long-term Operating Lease Liabilities, net of current portion (see Note 2.d.)	857,375
Long-Term Notes Payable to Affiliates and Intercompany Payable	5,072,926			4,954,686
Other Long-term Liabilities	51,721			115,994
Redeemable Noncontrolling Interests	0			0
Total Iron Mountain Incorporated Stockholders' Equity	1,311,424			1,220,566
Noncontrolling Interests	0			0
Total Equity	1,311,424			1,220,566
Total Liabilities and Equity	10,293,743			8,860,036
Non- Guarantors
Current Assets:
Deposits	0			12,700
Non- Guarantors | Reportable legal entities
Current Assets:
Cash and cash equivalents	106,923			169,318
Accounts receivable	786,973			798,989
Intercompany receivable	0			0
Prepaid expenses and other	113,301			86,797
Total Current Assets	1,007,197			1,055,104
Property, Plant and Equipment, Net	1,544,876			1,487,263
Other Assets, Net:
Long-term notes receivable from affiliates and intercompany receivable	0			0
Investment in subsidiaries	0			0
Goodwill	1,615,456			1,582,491
Operating lease right-of-use assets (see Note 2.d.)	872,267
Other	715,027			739,034
Total Other Assets, Net	3,202,750			2,321,525
Total Assets	5,754,823			4,863,892
Liabilities and Equity
Intercompany Payable	291,451			355,536
Debit Balances Under Cash Pools	69,486			55,003
Current Portion of Long-Term Debt	68,708			62,732
Total Other Current Liabilities (includes current portion of operating lease liabilities)	542,989			479,170
Long-Term Debt, Net of Current Portion	1,899,167			1,914,946
Long-term Operating Lease Liabilities, net of current portion (see Note 2.d.)	798,102
Long-Term Notes Payable to Affiliates and Intercompany Payable	0			0
Other Long-term Liabilities	266,142			300,064
Redeemable Noncontrolling Interests	73,113			70,532
Total Iron Mountain Incorporated Stockholders' Equity	1,744,505			1,624,500
Noncontrolling Interests	1,160			1,409
Total Equity	1,745,665			1,625,909
Total Liabilities and Equity	$ 5,754,823			$ 4,863,892

XML

Selected Consolidated Financial Statements of Parent, Guarantors and Non-Guarantors - Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Consolidating financial statements
Revenues	$ 1,066,907	$ 1,060,823	$ 2,120,770	$ 2,103,281
Intercompany	0	0	0	0
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	465,102	451,464	926,646	900,185
Intercompany	0	0	0	0
Selling, general and administrative	252,764	252,225	523,323	529,395
Depreciation and amortization	164,331	156,220	326,814	316,798
(Gain) Loss on disposal/write-down of property, plant and equipment, net	(8,405)	(546)	(7,803)	(1,676)
Total Operating Expenses	873,792	859,363	1,768,980	1,744,702
Operating Income (Loss)	193,115	201,460	351,790	358,579
Interest Expense (Income), Net	105,314	102,196	207,750	199,898
Other Expense (Income), Net	(15,192)	(19,056)	18	1,095
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes	102,993	118,320	144,022	157,586
Provision (Benefit) for Income Taxes	10,646	26,057	21,199	25,934
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	0	0	0	0
Income (Loss) from Continuing Operations	92,347	92,263	122,823	131,652
Income (Loss) from Discontinued Operations, Net of Tax	128	(360)	104	(822)
Net Income (Loss)	92,475	91,903	122,927	130,830
Less: Net Income (Loss) Attributable to Noncontrolling Interests	34	142	925	610
Net income (loss) attributable to Iron Mountain Incorporated	92,441	91,761	122,002	130,220
Net income (loss)	92,475	91,903	122,927	130,830
Other Comprehensive Income (Loss):
Foreign Currency Translation Adjustment	(5,791)	(139,172)	12,400	(107,521)
Change in Fair Value of Interest Rate Swap Agreements	(4,931)	2,388	(7,605)	2,203
Equity in Other Comprehensive Income (Loss) of Subsidiaries	0	0	0	0
Total Other Comprehensive (Loss) Income	(10,722)	(136,784)	4,795	(105,318)
Comprehensive Income (Loss)	81,753	(44,881)	127,722	25,512
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	173	(3,274)	1,877	(1,247)
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	81,580	(41,607)	125,845	26,759
Eliminations
Consolidating financial statements
Revenues	(5,698)	(5,521)	(11,775)	(11,217)
Intercompany	(5,698)	(5,521)	(11,775)	(11,217)
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	0	0	0	0
Intercompany	(5,698)	(5,521)	(11,775)	(11,217)
Selling, general and administrative	0	0	0	0
Depreciation and amortization	0	0	0	0
(Gain) Loss on disposal/write-down of property, plant and equipment, net	0	0	0	0
Total Operating Expenses	(5,698)	(5,521)	(11,775)	(11,217)
Operating Income (Loss)	0	0	0	0
Interest Expense (Income), Net	0	0	0	0
Other Expense (Income), Net	0	0	0	0
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes	0	0	0	0
Provision (Benefit) for Income Taxes	0	0	0	0
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	212,195	182,980	287,515	261,209
Income (Loss) from Continuing Operations	(212,195)	(182,980)	(287,515)	(261,209)
Income (Loss) from Discontinued Operations, Net of Tax	0	0	0	0
Net Income (Loss)	(212,195)	(182,980)	(287,515)	(261,209)
Less: Net Income (Loss) Attributable to Noncontrolling Interests	0	0	0	0
Net income (loss) attributable to Iron Mountain Incorporated	(212,195)	(182,980)	(287,515)	(261,209)
Net income (loss)	(212,195)	(182,980)	(287,515)	(261,209)
Other Comprehensive Income (Loss):
Foreign Currency Translation Adjustment	0	0	0	0
Change in Fair Value of Interest Rate Swap Agreements	0	0	0	0
Equity in Other Comprehensive Income (Loss) of Subsidiaries	529	275,878	(17,864)	201,810
Total Other Comprehensive (Loss) Income	529	275,878	(17,864)	201,810
Comprehensive Income (Loss)	(211,666)	92,898	(305,379)	(59,399)
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	0	0	0	0
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	(211,666)	92,898	(305,379)	(59,399)
Parent | Reportable legal entities
Consolidating financial statements
Revenues	0	0	0	0
Intercompany	0	0	0	0
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	0	0	0	0
Intercompany	0	0	0	0
Selling, general and administrative	62	36	149	79
Depreciation and amortization	22	32	45	65
(Gain) Loss on disposal/write-down of property, plant and equipment, net	0	0	0	0
Total Operating Expenses	84	68	194	144
Operating Income (Loss)	(84)	(68)	(194)	(144)
Interest Expense (Income), Net	49,601	50,313	99,226	100,254
Other Expense (Income), Net	359	2,767	541	1,610
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes	(50,044)	(53,148)	(99,961)	(102,008)
Provision (Benefit) for Income Taxes	0	0	0	0
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	(142,485)	(144,909)	(221,963)	(232,228)
Income (Loss) from Continuing Operations	92,441	91,761	122,002	130,220
Income (Loss) from Discontinued Operations, Net of Tax	0	0	0	0
Net Income (Loss)	92,441	91,761	122,002	130,220
Less: Net Income (Loss) Attributable to Noncontrolling Interests	0	0	0	0
Net income (loss) attributable to Iron Mountain Incorporated	92,441	91,761	122,002	130,220
Net income (loss)	92,441	91,761	122,002	130,220
Other Comprehensive Income (Loss):
Foreign Currency Translation Adjustment	(4,280)	10,257	1,861	4,622
Change in Fair Value of Interest Rate Swap Agreements	(4,931)	2,388	(7,605)	2,203
Equity in Other Comprehensive Income (Loss) of Subsidiaries	(1,650)	(146,018)	9,587	(110,286)
Total Other Comprehensive (Loss) Income	(10,861)	(133,373)	3,843	(103,461)
Comprehensive Income (Loss)	81,580	(41,612)	125,845	26,759
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	0	0	0	0
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	81,580	(41,612)	125,845	26,759
Guarantors | Reportable legal entities
Consolidating financial statements
Revenues	658,407	643,068	1,302,995	1,270,979
Intercompany	1,158	1,216	2,312	2,421
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	260,675	251,360	523,812	497,523
Intercompany	4,540	4,305	9,463	8,796
Selling, general and administrative	173,443	167,739	361,265	353,087
Depreciation and amortization	104,594	96,170	207,548	198,616
(Gain) Loss on disposal/write-down of property, plant and equipment, net	26,786	(462)	27,360	(818)
Total Operating Expenses	570,038	519,112	1,129,448	1,057,204
Operating Income (Loss)	88,369	123,956	173,547	213,775
Interest Expense (Income), Net	8,640	3,005	12,697	1,497
Other Expense (Income), Net	4,487	6,575	5,014	8,135
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes	75,242	114,376	155,836	204,143
Provision (Benefit) for Income Taxes	1,153	12,509	2,454	5,797
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	(69,710)	(38,071)	(65,552)	(28,981)
Income (Loss) from Continuing Operations	143,799	139,938	218,934	227,327
Income (Loss) from Discontinued Operations, Net of Tax	144	(273)	120	(695)
Net Income (Loss)	143,943	139,665	219,054	226,632
Less: Net Income (Loss) Attributable to Noncontrolling Interests	0	0	0	0
Net income (loss) attributable to Iron Mountain Incorporated	143,943	139,665	219,054	226,632
Net income (loss)	143,943	139,665	219,054	226,632
Other Comprehensive Income (Loss):
Foreign Currency Translation Adjustment	0	0	0	0
Change in Fair Value of Interest Rate Swap Agreements	0	0	0	0
Equity in Other Comprehensive Income (Loss) of Subsidiaries	1,121	(129,860)	8,277	(91,524)
Total Other Comprehensive (Loss) Income	1,121	(129,860)	8,277	(91,524)
Comprehensive Income (Loss)	145,064	9,805	227,331	135,108
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	0	0	0	0
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	145,064	9,805	227,331	135,108
Non- Guarantors | Reportable legal entities
Consolidating financial statements
Revenues	414,198	423,276	829,550	843,519
Intercompany	4,540	4,305	9,463	8,796
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	204,427	200,104	402,834	402,662
Intercompany	1,158	1,216	2,312	2,421
Selling, general and administrative	79,259	84,450	161,909	176,229
Depreciation and amortization	59,715	60,018	119,221	118,117
(Gain) Loss on disposal/write-down of property, plant and equipment, net	(35,191)	(84)	(35,163)	(858)
Total Operating Expenses	309,368	345,704	651,113	698,571
Operating Income (Loss)	104,830	77,572	178,437	144,948
Interest Expense (Income), Net	47,073	48,878	95,827	98,147
Other Expense (Income), Net	(20,038)	(28,398)	(5,537)	(8,650)
(Loss) Income from Continuing Operations Before Provision (Benefit) for Income Taxes	77,795	57,092	88,147	55,451
Provision (Benefit) for Income Taxes	9,493	13,548	18,745	20,137
Equity in the (Earnings) Losses of Subsidiaries, Net of Tax	0	0	0	0
Income (Loss) from Continuing Operations	68,302	43,544	69,402	35,314
Income (Loss) from Discontinued Operations, Net of Tax	(16)	(87)	(16)	(127)
Net Income (Loss)	68,286	43,457	69,386	35,187
Less: Net Income (Loss) Attributable to Noncontrolling Interests	34	142	925	610
Net income (loss) attributable to Iron Mountain Incorporated	68,252	43,315	68,461	34,577
Net income (loss)	68,286	43,457	69,386	35,187
Other Comprehensive Income (Loss):
Foreign Currency Translation Adjustment	(1,511)	(149,429)	10,539	(112,143)
Change in Fair Value of Interest Rate Swap Agreements	0	0	0	0
Equity in Other Comprehensive Income (Loss) of Subsidiaries	0	0	0	0
Total Other Comprehensive (Loss) Income	(1,511)	(149,429)	10,539	(112,143)
Comprehensive Income (Loss)	66,775	(105,972)	79,925	(76,956)
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	173	(3,274)	1,877	(1,247)
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	66,602	(102,698)	78,048	(75,709)
Storage rental
Consolidating financial statements
Revenues	669,288	655,439	1,332,262	1,306,588
Storage rental | Eliminations
Consolidating financial statements
Revenues	0	0	0	0
Storage rental | Parent | Reportable legal entities
Consolidating financial statements
Revenues	0	0	0	0
Storage rental | Guarantors | Reportable legal entities
Consolidating financial statements
Revenues	411,159	397,449	814,900	793,925
Storage rental | Non- Guarantors | Reportable legal entities
Consolidating financial statements
Revenues	258,129	257,990	517,362	512,663
Service
Consolidating financial statements
Revenues	397,619	405,384	788,508	796,693
Service | Eliminations
Consolidating financial statements
Revenues	0	0	0	0
Service | Parent | Reportable legal entities
Consolidating financial statements
Revenues	0	0	0	0
Service | Guarantors | Reportable legal entities
Consolidating financial statements
Revenues	246,090	244,403	485,783	474,633
Service | Non- Guarantors | Reportable legal entities
Consolidating financial statements
Revenues	$ 151,529	$ 160,981	$ 302,725	$ 322,060

XML

Selected Consolidated Financial Statements of Parent, Guarantors and Non-Guarantors - Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Cash Flows from Operating Activities:
Cash Flows from Operating Activities—Continuing Operations			$ 429,731	$ 393,806
Cash Flows from Operating Activities—Discontinued Operations			0	(477)
Cash Flows from Operating Activities			429,731	393,329
Cash Flows from Investing Activities:
Capital expenditures	$ (182,366)	$ (121,996)	(367,131)	(217,601)
Cash paid for acquisitions, net of cash acquired	(5,228)	(237,895)	(44,651)	(1,666,869)
Intercompany loans to subsidiaries			0	0
Acquisitions of customer relationships, customer inducements and data center lease-based intangibles	(22,650)	(19,187)	(90,562)	(37,233)
Investments in joint ventures (see Note 9)			(19,222)	0
Proceeds from sales of property and equipment and other, net			46,832	207
Cash Flows from Investing Activities—Continuing Operations			(474,734)	(1,921,496)
Cash Flows from Investing Activities—Discontinued Operations			5,061	0
Cash Flows from Investing Activities			(469,673)	(1,921,496)
Cash Flows from Financing Activities:
Repayment of revolving credit facility, term loan facilities and other debt			(2,602,922)	(7,876,796)
Proceeds from revolving credit facility, term loan facilities and other debt			2,998,107	8,944,416
Debit (payments) balances under cash pools			0	0
Debt financing from (repayment to) and equity contribution from (distribution to) noncontrolling interests, net			(999)	(1,079)
Intercompany loans from parent			0	0
Parent cash dividends			(353,357)	(337,052)
Net (payments) proceeds associated with employee stock-based awards			(1,727)	(2,259)
Net proceeds associated with the Over-Allotment Option			0	76,192
Net proceeds associated with the At the Market (ATM) Program			0	8,716
Payment of debt financing and stock issuance costs			0	(13,385)
Cash Flows from Financing Activities - Continuing Operations			39,102	798,753
Cash Flows from Financing Activities - Discontinued Operations			0	0
Cash Flows from Financing Activities			39,102	798,753
Effect of Exchange Rates on Cash and Cash Equivalents			(2,649)	(8,093)
(Decrease) Increase in Cash and Cash Equivalents			(3,489)	(737,507)
Cash and Cash Equivalents, including Restricted Cash, Beginning of Period			165,485	925,699
Cash and Cash Equivalents, including Restricted Cash, End of Period	161,996	188,192	161,996	188,192
Eliminations
Cash Flows from Operating Activities:
Cash Flows from Operating Activities—Continuing Operations			0	0
Cash Flows from Operating Activities—Discontinued Operations			0	0
Cash Flows from Operating Activities			0	0
Cash Flows from Investing Activities:
Capital expenditures			0	0
Cash paid for acquisitions, net of cash acquired			0	0
Intercompany loans to subsidiaries			(440,970)	(389,515)
Acquisitions of customer relationships, customer inducements and data center lease-based intangibles			0	0
Investments in joint ventures (see Note 9)			0
Proceeds from sales of property and equipment and other, net			0	0
Cash Flows from Investing Activities—Continuing Operations			(440,970)	(389,515)
Cash Flows from Investing Activities—Discontinued Operations			0	0
Cash Flows from Investing Activities			(440,970)	(389,515)
Cash Flows from Financing Activities:
Repayment of revolving credit facility, term loan facilities and other debt			0	0
Proceeds from revolving credit facility, term loan facilities and other debt			0	0
Debit (payments) balances under cash pools			(3,871)	4,807
Debt financing from (repayment to) and equity contribution from (distribution to) noncontrolling interests, net			0	0
Intercompany loans from parent			440,970	389,515
Parent cash dividends			0	0
Net (payments) proceeds associated with employee stock-based awards			0	0
Net proceeds associated with the Over-Allotment Option				0
Net proceeds associated with the At the Market (ATM) Program				0
Payment of debt financing and stock issuance costs				0
Cash Flows from Financing Activities - Continuing Operations			437,099	394,322
Cash Flows from Financing Activities - Discontinued Operations			0	0
Cash Flows from Financing Activities			437,099	394,322
Effect of Exchange Rates on Cash and Cash Equivalents			0	0
(Decrease) Increase in Cash and Cash Equivalents			(3,871)	4,807
Cash and Cash Equivalents, including Restricted Cash, Beginning of Period			(65,615)	(94,726)
Cash and Cash Equivalents, including Restricted Cash, End of Period	(69,486)	(89,919)	(69,486)	(89,919)
Parent | Reportable legal entities
Cash Flows from Operating Activities:
Cash Flows from Operating Activities—Continuing Operations			(75,316)	(117,979)
Cash Flows from Operating Activities—Discontinued Operations			0	0
Cash Flows from Operating Activities			(75,316)	(117,979)
Cash Flows from Investing Activities:
Capital expenditures			0	0
Cash paid for acquisitions, net of cash acquired			0	0
Intercompany loans to subsidiaries			430,274	370,423
Acquisitions of customer relationships, customer inducements and data center lease-based intangibles			0	0
Investments in joint ventures (see Note 9)			0
Proceeds from sales of property and equipment and other, net			0	0
Cash Flows from Investing Activities—Continuing Operations			430,274	370,423
Cash Flows from Investing Activities—Discontinued Operations			0	0
Cash Flows from Investing Activities			430,274	370,423
Cash Flows from Financing Activities:
Repayment of revolving credit facility, term loan facilities and other debt			0	0
Proceeds from revolving credit facility, term loan facilities and other debt			0	0
Debit (payments) balances under cash pools			0	0
Debt financing from (repayment to) and equity contribution from (distribution to) noncontrolling interests, net			0	0
Intercompany loans from parent			0	0
Parent cash dividends			(353,357)	(337,052)
Net (payments) proceeds associated with employee stock-based awards			(1,727)	(2,259)
Net proceeds associated with the Over-Allotment Option				76,192
Net proceeds associated with the At the Market (ATM) Program				8,716
Payment of debt financing and stock issuance costs				(412)
Cash Flows from Financing Activities - Continuing Operations			(355,084)	(254,815)
Cash Flows from Financing Activities - Discontinued Operations			0	0
Cash Flows from Financing Activities			(355,084)	(254,815)
Effect of Exchange Rates on Cash and Cash Equivalents			0	0
(Decrease) Increase in Cash and Cash Equivalents			(126)	(2,371)
Cash and Cash Equivalents, including Restricted Cash, Beginning of Period			132	2,433
Cash and Cash Equivalents, including Restricted Cash, End of Period	6	62	6	62
Guarantors | Reportable legal entities
Cash Flows from Operating Activities:
Cash Flows from Operating Activities—Continuing Operations			397,474	409,167
Cash Flows from Operating Activities—Discontinued Operations			0	(477)
Cash Flows from Operating Activities			397,474	408,690
Cash Flows from Investing Activities:
Capital expenditures			(201,784)	(142,737)
Cash paid for acquisitions, net of cash acquired			(9,508)	(1,314,370)
Intercompany loans to subsidiaries			10,696	19,092
Acquisitions of customer relationships, customer inducements and data center lease-based intangibles			(68,153)	(24,922)
Investments in joint ventures (see Note 9)			(19,222)
Proceeds from sales of property and equipment and other, net			54	0
Cash Flows from Investing Activities—Continuing Operations			(287,917)	(1,462,937)
Cash Flows from Investing Activities—Discontinued Operations			2,564	0
Cash Flows from Investing Activities			(285,353)	(1,462,937)
Cash Flows from Financing Activities:
Repayment of revolving credit facility, term loan facilities and other debt			(837,712)	(3,657,315)
Proceeds from revolving credit facility, term loan facilities and other debt			1,209,304	4,531,603
Debit (payments) balances under cash pools			(10,612)	(7,657)
Debt financing from (repayment to) and equity contribution from (distribution to) noncontrolling interests, net			0	0
Intercompany loans from parent			(410,198)	(384,323)
Parent cash dividends			0	0
Net (payments) proceeds associated with employee stock-based awards			0	0
Net proceeds associated with the Over-Allotment Option				0
Net proceeds associated with the At the Market (ATM) Program				0
Payment of debt financing and stock issuance costs				(12,322)
Cash Flows from Financing Activities - Continuing Operations			(49,218)	469,986
Cash Flows from Financing Activities - Discontinued Operations			0	0
Cash Flows from Financing Activities			(49,218)	469,986
Effect of Exchange Rates on Cash and Cash Equivalents			0	0
(Decrease) Increase in Cash and Cash Equivalents			62,903	(584,261)
Cash and Cash Equivalents, including Restricted Cash, Beginning of Period			61,650	634,317
Cash and Cash Equivalents, including Restricted Cash, End of Period	124,553	50,056	124,553	50,056
Non- Guarantors | Reportable legal entities
Cash Flows from Operating Activities:
Cash Flows from Operating Activities—Continuing Operations			107,573	102,618
Cash Flows from Operating Activities—Discontinued Operations			0	0
Cash Flows from Operating Activities			107,573	102,618
Cash Flows from Investing Activities:
Capital expenditures			(165,347)	(74,864)
Cash paid for acquisitions, net of cash acquired			(35,143)	(352,499)
Intercompany loans to subsidiaries			0	0
Acquisitions of customer relationships, customer inducements and data center lease-based intangibles			(22,409)	(12,311)
Investments in joint ventures (see Note 9)			0
Proceeds from sales of property and equipment and other, net			46,778	207
Cash Flows from Investing Activities—Continuing Operations			(176,121)	(439,467)
Cash Flows from Investing Activities—Discontinued Operations			2,497	0
Cash Flows from Investing Activities			(173,624)	(439,467)
Cash Flows from Financing Activities:
Repayment of revolving credit facility, term loan facilities and other debt			(1,765,210)	(4,219,481)
Proceeds from revolving credit facility, term loan facilities and other debt			1,788,803	4,412,813
Debit (payments) balances under cash pools			14,483	2,850
Debt financing from (repayment to) and equity contribution from (distribution to) noncontrolling interests, net			(999)	(1,079)
Intercompany loans from parent			(30,772)	(5,192)
Parent cash dividends			0	0
Net (payments) proceeds associated with employee stock-based awards			0	0
Net proceeds associated with the Over-Allotment Option				0
Net proceeds associated with the At the Market (ATM) Program				0
Payment of debt financing and stock issuance costs				(651)
Cash Flows from Financing Activities - Continuing Operations			6,305	189,260
Cash Flows from Financing Activities - Discontinued Operations			0	0
Cash Flows from Financing Activities			6,305	189,260
Effect of Exchange Rates on Cash and Cash Equivalents			(2,649)	(8,093)
(Decrease) Increase in Cash and Cash Equivalents			(62,395)	(155,682)
Cash and Cash Equivalents, including Restricted Cash, Beginning of Period			169,318	383,675
Cash and Cash Equivalents, including Restricted Cash, End of Period	$ 106,923	$ 227,993	$ 106,923	$ 227,993

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Segment Information - Additional Information (Details)	12 Months Ended
	Dec. 31, 2018 segment
Segment Reporting [Abstract]
Number of operating segments	6

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Segment Information - Segment Reporting Information by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Segment Information [Line Items]
Revenues	$ 1,066,907	$ 1,060,823	$ 2,120,770	$ 2,103,281
Depreciation and Amortization	164,331	156,220	326,814	316,798
Depreciation	113,722	111,501	228,333	224,933
Amortization	50,609	44,719	98,481	91,865
Adjusted EBITDA	350,942	367,555	675,448	703,130
Total Assets	13,720,982	11,817,159	13,720,982	11,817,159	$ 11,857,218
Expenditures for Segment Assets	210,244	379,078	502,344	1,921,703
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	182,366	121,996	367,131	217,601
Cash Paid for Acquisitions, Net of Cash Acquired	5,228	237,895	44,651	1,666,869
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs	22,650	19,187	90,562	37,233
North American Records and Information Management Business
Segment Information [Line Items]
Revenues	539,273	539,080	1,066,653	1,065,923
Depreciation and Amortization	62,691	60,970	122,693	123,722
Depreciation	46,655	48,252	92,407	97,390
Amortization	16,036	12,718	30,286	26,332
Adjusted EBITDA	245,585	244,861	469,268	470,599
Total Assets	5,840,023	5,010,186	5,840,023	5,010,186
Expenditures for Segment Assets	46,545	41,364	102,810	84,545
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	28,596	25,122	57,284	54,992
Cash Paid for Acquisitions, Net of Cash Acquired	0	0	9,876	1,551
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs	17,949	16,242	35,650	28,002
North American Data Management Business
Segment Information [Line Items]
Revenues	96,415	100,031	193,162	199,995
Depreciation and Amortization	10,100	9,538	20,302	19,642
Depreciation	7,818	7,217	15,831	15,240
Amortization	2,282	2,321	4,471	4,402
Adjusted EBITDA	53,068	55,280	103,620	109,132
Total Assets	877,777	829,682	877,777	829,682
Expenditures for Segment Assets	5,254	3,643	10,886	10,496
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	5,254	3,643	10,886	10,496
Cash Paid for Acquisitions, Net of Cash Acquired	0	0	0	0
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs	0	0	0	0
Western European Business
Segment Information [Line Items]
Revenues	127,327	133,440	256,080	267,515
Depreciation and Amortization	14,328	17,500	29,585	35,056
Depreciation	10,476	11,821	21,423	24,579
Amortization	3,852	5,679	8,162	10,477
Adjusted EBITDA	44,163	46,594	83,372	90,560
Total Assets	1,406,937	1,344,699	1,406,937	1,344,699
Expenditures for Segment Assets	24,334	27,559	54,435	35,039
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	22,724	25,096	24,840	31,143
Cash Paid for Acquisitions, Net of Cash Acquired	366	0	11,850	0
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs	1,244	2,463	17,745	3,896
Other International Business
Segment Information [Line Items]
Revenues	199,823	207,527	400,779	418,294
Depreciation and Amortization	30,760	30,364	61,359	62,237
Depreciation	17,833	18,199	36,051	37,263
Amortization	12,927	12,165	25,308	24,974
Adjusted EBITDA	58,749	60,452	116,873	121,199
Total Assets	2,703,347	2,247,071	2,703,347	2,247,071
Expenditures for Segment Assets	18,829	30,287	50,083	62,447
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	11,955	13,921	27,104	39,063
Cash Paid for Acquisitions, Net of Cash Acquired	4,862	16,188	19,405	19,396
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs	2,012	178	3,574	3,988
Global Data Center Business
Segment Information [Line Items]
Revenues	62,291	54,895	123,827	101,498
Depreciation and Amortization	32,671	22,503	64,303	44,771
Depreciation	19,027	13,120	38,040	24,500
Amortization	13,644	9,383	26,263	20,271
Adjusted EBITDA	27,641	24,901	53,652	45,691
Total Assets	2,330,535	1,909,088	2,330,535	1,909,088
Expenditures for Segment Assets	102,477	265,173	256,182	1,703,185
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	101,032	43,162	222,589	56,273
Cash Paid for Acquisitions, Net of Cash Acquired	0	221,707	0	1,645,922
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs	1,445	304	33,593	990
Corporate and Other Business
Segment Information [Line Items]
Revenues	41,778	25,850	80,269	50,056
Depreciation and Amortization	13,781	15,345	28,572	31,370
Depreciation	11,913	12,892	24,581	25,961
Amortization	1,868	2,453	3,991	5,409
Adjusted EBITDA	(78,264)	(64,533)	(151,337)	(134,051)
Total Assets	562,363	476,433	562,363	476,433
Expenditures for Segment Assets	12,805	11,052	27,948	25,991
Capital Expenditures (see Liquidity and Capital Resources section of Management's Discussion & Analysis of Financial Condition and Results of Operations)	12,805	11,052	24,428	25,634
Cash Paid for Acquisitions, Net of Cash Acquired	0	0	3,520	0
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs	0	0	0	357
Storage rental
Segment Information [Line Items]
Revenues	669,288	655,439	1,332,262	1,306,588
Storage rental | North American Records and Information Management Business
Segment Information [Line Items]
Revenues	313,355	305,895	620,341	610,714
Storage rental | North American Data Management Business
Segment Information [Line Items]
Revenues	66,750	68,808	133,322	138,054
Storage rental | Western European Business
Segment Information [Line Items]
Revenues	78,554	82,439	159,249	166,391
Storage rental | Other International Business
Segment Information [Line Items]
Revenues	128,898	129,611	258,371	261,358
Storage rental | Global Data Center Business
Segment Information [Line Items]
Revenues	60,582	51,945	120,300	97,440
Storage rental | Corporate and Other Business
Segment Information [Line Items]
Revenues	21,149	16,741	40,679	32,631
Service
Segment Information [Line Items]
Revenues	397,619	405,384	788,508	796,693
Service | North American Records and Information Management Business
Segment Information [Line Items]
Revenues	225,918	233,185	446,312	455,209
Service | North American Data Management Business
Segment Information [Line Items]
Revenues	29,665	31,223	59,840	61,941
Service | Western European Business
Segment Information [Line Items]
Revenues	48,773	51,001	96,831	101,124
Service | Other International Business
Segment Information [Line Items]
Revenues	70,925	77,916	142,408	156,936
Service | Global Data Center Business
Segment Information [Line Items]
Revenues	1,709	2,950	3,527	4,058
Service | Corporate and Other Business
Segment Information [Line Items]
Revenues	$ 20,629	$ 9,109	$ 39,590	$ 17,425

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Segment Information - Reconciliation to Income from Continuing Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Reconciliation of Adjusted EBITDA to income from continuing operations
Adjusted EBITDA	$ 350,942	$ 367,555	$ 675,448	$ 703,130
Provision (Benefit) for Income Taxes	10,646	26,057	21,199	25,934
Other (Income) Expense, Net	(15,192)	(19,056)	18	1,095
Interest Expense, Net	105,314	102,196	207,750	199,898
(Gain) Loss on disposal/write-down of property, plant and equipment, net	(8,405)	(546)	(7,803)	(1,676)
Depreciation and Amortization	164,331	156,220	326,814	316,798
Income (Loss) from Continuing Operations	92,347	92,263	122,823	131,652
Recall Transaction and IODC Transaction
Reconciliation of Adjusted EBITDA to income from continuing operations
Significant Acquisition Costs	$ 1,901	$ 10,421	$ 4,647	$ 29,429

XML

Segment Information - Revenues by Product and Service Lines by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Segment Information [Line Items]
Revenues	$ 1,066,907	$ 1,060,823	$ 2,120,770	$ 2,103,281
North American Records and Information Management Business
Segment Information [Line Items]
Revenues	539,273	539,080	1,066,653	1,065,923
North American Data Management Business
Segment Information [Line Items]
Revenues	96,415	100,031	193,162	199,995
Western European Business
Segment Information [Line Items]
Revenues	127,327	133,440	256,080	267,515
Other International Business
Segment Information [Line Items]
Revenues	199,823	207,527	400,779	418,294
Global Data Center Business
Segment Information [Line Items]
Revenues	62,291	54,895	123,827	101,498
Corporate and Other Business
Segment Information [Line Items]
Revenues	41,778	25,850	80,269	50,056
Records Management
Segment Information [Line Items]
Revenues	750,782	746,321	1,484,178	1,486,816
Records Management | North American Records and Information Management Business
Segment Information [Line Items]
Revenues	442,785	441,401	870,152	876,403
Records Management | North American Data Management Business
Segment Information [Line Items]
Revenues	0	0	0	0
Records Management | Western European Business
Segment Information [Line Items]
Revenues	109,369	113,925	218,076	227,684
Records Management | Other International Business
Segment Information [Line Items]
Revenues	172,433	179,194	345,410	360,524
Records Management | Global Data Center Business
Segment Information [Line Items]
Revenues	0	0	0	0
Records Management | Corporate and Other Business
Segment Information [Line Items]
Revenues	26,195	11,801	50,540	22,205
Data Management
Segment Information [Line Items]
Revenues	144,430	150,437	291,678	302,530
Data Management | North American Records and Information Management Business
Segment Information [Line Items]
Revenues	0	0	0	0
Data Management | North American Data Management Business
Segment Information [Line Items]
Revenues	93,152	97,768	187,141	195,362
Data Management | Western European Business
Segment Information [Line Items]
Revenues	16,908	19,393	36,794	39,612
Data Management | Other International Business
Segment Information [Line Items]
Revenues	18,787	19,227	38,014	39,705
Data Management | Global Data Center Business
Segment Information [Line Items]
Revenues	0	0	0	0
Data Management | Corporate and Other Business
Segment Information [Line Items]
Revenues	15,583	14,049	29,729	27,851
Information Destruction
Segment Information [Line Items]
Revenues	109,404	109,170	221,087	212,437
Information Destruction | North American Records and Information Management Business
Segment Information [Line Items]
Revenues	96,488	97,679	196,501	189,520
Information Destruction | North American Data Management Business
Segment Information [Line Items]
Revenues	3,263	2,263	6,021	4,633
Information Destruction | Western European Business
Segment Information [Line Items]
Revenues	1,050	122	1,210	219
Information Destruction | Other International Business
Segment Information [Line Items]
Revenues	8,603	9,106	17,355	18,065
Information Destruction | Global Data Center Business
Segment Information [Line Items]
Revenues	0	0	0	0
Information Destruction | Corporate and Other Business
Segment Information [Line Items]
Revenues	0	0	0	0
Data Center
Segment Information [Line Items]
Revenues	62,291	54,895	123,827	101,498
Data Center | North American Records and Information Management Business
Segment Information [Line Items]
Revenues	0	0	0	0
Data Center | North American Data Management Business
Segment Information [Line Items]
Revenues	0	0	0	0
Data Center | Western European Business
Segment Information [Line Items]
Revenues	0	0	0	0
Data Center | Other International Business
Segment Information [Line Items]
Revenues	0	0	0	0
Data Center | Global Data Center Business
Segment Information [Line Items]
Revenues	62,291	54,895	123,827	101,498
Data Center | Corporate and Other Business
Segment Information [Line Items]
Revenues	$ 0	$ 0	$ 0	$ 0

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Commitments and Contingencies (Details) - Jun. 30, 2019 € in Thousands, $ in Thousands	USD ($)	EUR (€)
Insurance Settlement
Commitments and Contingencies
Reasonably possible additional losses | $	$ 17,000
Tax and Customs Administration, Netherlands | Foreign
Commitments and Contingencies
VAT liability | €		€ 16,800

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Stockholders' Equity Matters - Dividends Declared (Details) $ / shares in Units, $ in Thousands													1 Months Ended	3 Months Ended		6 Months Ended
	Jul. 02, 2019 USD ($)	May 22, 2019 $ / shares	Apr. 02, 2019 USD ($)	Feb. 07, 2019 $ / shares	Jan. 03, 2019 USD ($)	Oct. 25, 2018 $ / shares	Oct. 02, 2018 USD ($)	Jul. 24, 2018 $ / shares	Jul. 02, 2018 USD ($)	May 24, 2018 $ / shares	Apr. 02, 2018 USD ($)	Feb. 14, 2018 $ / shares	Oct. 31, 2017 USD ($) bank	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) shares	Jun. 30, 2018 USD ($)
Subsidiary or Equity Method Investee [Line Items]
Dividend Per Share (in dollars per share) | $ / shares		$ 0.6110		$ 0.6110		$ 0.6110		$ 0.5875		$ 0.5875		$ 0.5875
Total Amount			$ 175,242		$ 174,935		$ 168,148		$ 168,078		$ 167,969			$ 176,642	$ 169,207	$ 353,102	$ 338,251
Subsequent Event
Subsidiary or Equity Method Investee [Line Items]
Total Amount	$ 175,389
At The Market (ATM) Equity Program
Subsidiary or Equity Method Investee [Line Items]
Number of banks | bank													10
Aggregate sales price of common stock													$ 500,000
Shares of common stock sold (in shares) | shares																0
Remaining aggregate sale price of shares of common stock														$ 431,200		$ 431,200

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Divestments (Details) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended
	Mar. 19, 2019	Mar. 31, 2019	Jun. 30, 2019	Jun. 30, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Investments in joint ventures			$ 19,222	$ 0
Consumer Storage | Disposal Group, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on disposal		$ 4,200
Corporate Joint Venture | Makespace
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Investments in joint ventures	$ 20,000
Equity interest	34.00%
Equity method investment, fair value	$ 27,500
Carrying value of investment			$ 23,896

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Significant Acquisition Costs - Significant Acquisition Costs Included in Statements of Operations (Details) - Recall Transaction and IODC Transaction - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Business Combination, Separately Recognized Transactions [Line Items]
Total Significant Acquisition Costs	$ 1,901	$ 10,421	$ 4,647	$ 29,429
Cost of sales (excluding depreciation and amortization)
Business Combination, Separately Recognized Transactions [Line Items]
Total Significant Acquisition Costs	1,293	1,827	2,191	2,123
Selling, general and administrative expenses
Business Combination, Separately Recognized Transactions [Line Items]
Total Significant Acquisition Costs	$ 608	$ 8,594	$ 2,456	$ 27,306

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Significant Acquisition Costs - Significant Acquisition Costs by Segment (Details) - Recall Transaction and IODC Transaction - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Business Combination, Separately Recognized Transactions [Line Items]
Total Significant Acquisition Costs	$ 1,901	$ 10,421	$ 4,647	$ 29,429
North American Records and Information Management Business
Business Combination, Separately Recognized Transactions [Line Items]
Total Significant Acquisition Costs	0	3,017	378	3,601
North American Data Management Business
Business Combination, Separately Recognized Transactions [Line Items]
Total Significant Acquisition Costs	0	351	0	351
Western European Business
Business Combination, Separately Recognized Transactions [Line Items]
Total Significant Acquisition Costs	81	1,427	81	3,579
Other International Business
Business Combination, Separately Recognized Transactions [Line Items]
Total Significant Acquisition Costs	951	896	1,453	1,433
Global Data Center Business
Business Combination, Separately Recognized Transactions [Line Items]
Total Significant Acquisition Costs	124	1,159	267	11,340
Corporate and Other Business
Business Combination, Separately Recognized Transactions [Line Items]
Total Significant Acquisition Costs	$ 745	$ 3,571	$ 2,468	$ 9,125

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Related Party Transactions - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Makespace
Related Party Transaction [Line Items]
Revenue	$ 7,400	$ 7,900