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 March 31, 2024

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.)

    

85 New Hampshire Avenue, Suite 150, Portsmouth, New Hampshire 03801

(Address of Principal Executive Offices, Including Zip Code)

(617) 535-4766

(Registrant's Telephone Number, Including Area Code)

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

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

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒    No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒    No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐    No ☒

As of April 26, 2024, the registrant had 293,133,321 outstanding shares of common stock, $.01 par value.

IRON MOUNTAIN INCORPORATED

2024 FORM 10-Q QUARTERLY REPORT

TABLE OF CONTENTS

PART I—FINANCIAL INFORMATION
	1	ITEM 1.	Unaudited Condensed Consolidated Financial Statements
		2	Condensed Consolidated Balance Sheets at March 31, 2024 and December 31, 2023
		3	Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023
		4	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31, 2024 and 2023
		5	Condensed Consolidated Statements of Equity for the Three Months Ended March 31, 2024 and 2023
		6	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023
		7	Notes to Condensed Consolidated Financial Statements
	24	ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations
	43	ITEM 4.	Controls and Procedures
PART II—OTHER INFORMATION
	45	ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds
	45	ITEM 5.	Other Information
	45	ITEM 6.	Exhibits
	47	Signatures

PART I. FINANCIAL INFORMATION

ITEM 1. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

IRON MOUNTAIN MARCH 31, 2024 FORM 10-Q 1

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) (UNAUDITED)

	MARCH 31, 2024		DECEMBER 31, 2023
ASSETS
Current Assets:
Cash and cash equivalents	$	191,655	$	222,789
Accounts receivable (less allowances of $77,413 and $74,762 as of March 31, 2024 and December 31, 2023, respectively)	1,268,061		1,259,826
Prepaid expenses and other	275,358		252,930
Total Current Assets	1,735,074		1,735,545
Property, Plant and Equipment:
Property, plant and equipment	10,647,036		10,373,989
Less—Accumulated depreciation	(4,108,897)		(4,059,120)
Property, Plant and Equipment, Net	6,538,139		6,314,869
Other Assets, Net:
Goodwill	5,107,473		5,017,912
Customer and supplier relationships and other intangible assets	1,330,638		1,279,800
Operating lease right-of-use assets	2,677,803		2,696,024
Other	440,429		429,652
Total Other Assets, Net	9,556,343		9,423,388
Total Assets	$	17,829,556	$	17,473,802
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of long-term debt	$	118,771	$	120,670
Accounts payable	524,901		539,594
Accrued expenses and other current liabilities (includes current portion of operating lease liabilities)	1,052,454		1,250,259
Deferred revenue	332,801		325,665
Total Current Liabilities	2,028,927		2,236,188
Long-term Debt, net of current portion	12,588,569		11,812,500
Long-term Operating Lease Liabilities, net of current portion	2,525,552		2,562,394
Other Long-term Liabilities	255,491		237,590
Deferred Income Taxes	233,135		235,410
Commitments and Contingencies
Redeemable Noncontrolling Interests	179,222		177,947
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 293,085,683 and 292,142,739 shares as of March 31, 2024 and December 31, 2023, respectively)	2,931		2,921
Additional paid-in capital	4,518,644		4,533,691
(Distributions in excess of earnings) Earnings in excess of distributions	(4,074,243)		(3,953,808)
Accumulated other comprehensive items, net	(428,797)		(371,156)
Total Iron Mountain Incorporated Stockholders' Equity	18,535		211,648
Noncontrolling Interests	125		125
Total Equity	18,660		211,773
Total Liabilities and Equity	$	17,829,556	$	17,473,802

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

IRON MOUNTAIN MARCH 31, 2024 FORM 10-Q 2

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)

	THREE MONTHS ENDED MARCH 31,
	2024		2023
Revenues:
Storage rental	$	884,842	$	810,089
Service	592,021		504,260
Total Revenues	1,476,863		1,314,349
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	653,255		571,626
Selling, general and administrative	319,465		294,520
Depreciation and amortization	209,555		182,094
Acquisition and Integration Costs	7,809		1,595
Restructuring and other transformation	40,767		36,913
Loss (gain) on disposal/write-down of property, plant and equipment, net	389		(13,061)
Total Operating Expenses	1,231,240		1,073,687
Operating Income (Loss)	245,623		240,662
Interest Expense, Net (includes Interest Income of $3,660 and $2,907 for the three months ended March 31, 2024 and 2023, respectively)	164,519		137,169
Other (Income) Expense, Net	(12,530)		21,200
Net Income (Loss) Before Provision (Benefit) for Income Taxes	93,634		82,293
Provision (Benefit) for Income Taxes	16,609		16,758
Net Income (Loss)	77,025		65,535
Less: Net Income (Loss) Attributable to Noncontrolling Interests	2,964		940
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	74,061	$	64,595
Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated:
Basic	$	0.25	$	0.22
Diluted	$	0.25	$	0.22
Weighted Average Common Shares Outstanding—Basic	292,746		291,442
Weighted Average Common Shares Outstanding—Diluted	295,221		293,049

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

IRON MOUNTAIN MARCH 31, 2024 FORM 10-Q 3

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(IN THOUSANDS) (UNAUDITED)

	THREE MONTHS ENDED MARCH 31,
	2024		2023
Net Income (Loss)	$	77,025	$	65,535
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustment	(67,269)		40,226
Change in Fair Value of Derivative Instruments	11,388		(3,442)
Reclassifications from Accumulated Other Comprehensive Items, net	(2,528)		—
Total Other Comprehensive (Loss) Income:	(58,409)		36,784
Comprehensive Income (Loss)	18,616		102,319
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	2,196		1,489
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$	16,420	$	100,830

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

IRON MOUNTAIN MARCH 31, 2024 FORM 10-Q 4

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(IN THOUSANDS, EXCEPT SHARE DATA) (UNAUDITED)

THREE MONTHS ENDED MARCH 31, 2024
			IRON MOUNTAIN INCORPORATED STOCKHOLDERS' EQUITY
			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
	TOTAL		SHARES	AMOUNTS
Balance, December 31, 2023	$	211,773	292,142,739	$	2,921	$	4,533,691	$	(3,953,808)	$	(371,156)	$	125	$	177,947
Issuance and net settlement of shares under employee stock purchase plan and option plans and stock-based compensation	(15,459)		942,944	10		(15,469)		—		—		—		—
Changes in equity related to redeemable noncontrolling interests	422		—	—		422		—		—		—		(422)
Parent cash dividends declared	(194,496)		—	—		—		(194,496)		—		—		—
Other comprehensive (loss) income	(57,641)		—	—		—		—		(57,641)		—		(768)
Net income (loss)	74,061		—	—		—		74,061		—		—		2,964
Noncontrolling interests dividends	—		—	—		—		—		—		—		(499)
Balance, March 31, 2024	$	18,660	293,085,683	$	2,931	$	4,518,644	$	(4,074,243)	$	(428,797)	$	125	$	179,222
THREE MONTHS ENDED MARCH 31, 2023
			IRON MOUNTAIN INCORPORATED STOCKHOLDERS' EQUITY
			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
	TOTAL		SHARES	AMOUNTS
Balance, December 31, 2022	$	636,793	290,830,296	$	2,908	$	4,468,035	$	(3,392,272)	$	(442,003)	$	125	$	95,160
Issuance and net settlement of shares under employee stock purchase plan and option plans and stock-based compensation	(8,762)		754,703	8		(8,770)		—		—		—		—
Parent cash dividends declared	(183,272)		—	—		—		(183,272)		—		—		—
Other comprehensive income (loss)	36,235		—	—		—		—		36,235		—		549
Net income (loss)	64,595		—	—		—		64,595		—		—		940
Noncontrolling interests dividend	—		—	—		—		—		—		—		(1,019)
Balance, March 31, 2023	$	545,589	291,584,999	$	2,916	$	4,459,265	$	(3,510,949)	$	(405,768)	$	125	$	95,630

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

IRON MOUNTAIN MARCH 31, 2024 FORM 10-Q 5

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS) (UNAUDITED)

	THREE MONTHS ENDED MARCH 31,
	2024		2023
Cash Flows from Operating Activities:
Net income (loss)	$	77,025	$	65,535
Adjustments to reconcile net income (loss) to cash flows from operating activities:
Depreciation	143,633		120,066
Amortization (includes amortization of deferred financing costs and discounts of $6,100 and $4,332 for the three months ended March 31, 2024 and 2023, respectively)	72,022		66,360
Revenue reduction associated with amortization of customer inducements and above- and below-market leases	1,321		1,760
Stock-based compensation expense	14,039		12,509
Provision (benefit) for deferred income taxes	1,125		4,183
Loss (gain) on disposal/write-down of property, plant and equipment, net	389		(13,061)
Foreign currency transactions and other, net	(5,091)		34,435
(Increase) decrease in assets	(29,738)		(33,530)
(Decrease) increase in liabilities	(144,687)		(129,449)
Cash Flows from Operating Activities	130,038		128,808
Cash Flows from Investing Activities:
Capital expenditures	(381,145)		(265,906)
Cash paid for acquisitions, net of cash acquired	(122,479)		(1,094)
Customer inducements	(2,286)		(1,357)
Contract costs	(25,304)		(24,014)
Investments in joint ventures and other investments	—		(15,830)
Proceeds from sales of property and equipment and other, net	5,605		35,658
Cash Flows from Investing Activities	(525,609)		(272,543)
Cash Flows from Financing Activities:
Repayment of revolving credit facility, term loan facilities and other debt	(1,730,252)		(4,649,926)
Proceeds from revolving credit facility, term loan facilities and other debt	2,479,378		5,008,631
Equity distribution to noncontrolling interests	(499)		(1,019)
Parent cash dividends	(198,013)		(186,514)
Payment of deferred purchase obligation	(158,677)		—
Net (payments) proceeds associated with employee stock-based awards	(29,498)		(21,271)
Other, net	(340)		—
Cash Flows from Financing Activities	362,099		149,901
Effect of Exchange Rates on Cash and Cash Equivalents	2,338		(1,521)
(Decrease) increase in Cash and Cash Equivalents	(31,134)		4,645
Cash and Cash Equivalents, Beginning of Period	222,789		141,797
Cash and Cash Equivalents, End of Period	$	191,655	$	146,442
Supplemental Information:
Cash Paid for Interest	$	274,796	$	204,902
Cash Paid for Income Taxes, Net	$	18,613	$	18,629
Non-Cash Investing and Financing Activities:
Financing Leases and Other	$	38,082	$	20,194
Accrued Capital Expenditures	$	210,255	$	207,425
Deferred Purchase Obligations and Other Deferred Payments	$	133,713	$	197,222
Dividends Payable	$	198,875	$	191,030

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

IRON MOUNTAIN MARCH 31, 2024 FORM 10-Q 6

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share and per share data) (Unaudited)

1. GENERAL

The unaudited condensed consolidated financial statements of Iron Mountain Incorporated, a Delaware corporation, and its subsidiaries ("we" or "us"), have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the "SEC"). Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to those rules and regulations, but we believe that the disclosures included herein are adequate to make the information presented not misleading. The interim condensed consolidated financial statements are presented herein and, in the opinion of management, reflect all adjustments of a normal recurring nature necessary for a fair presentation. Interim results are not necessarily indicative of results for a full year.

The Condensed Consolidated Financial Statements and Notes thereto, which are included herein, should be read in conjunction with the Consolidated Financial Statements and Notes thereto for the year ended December 31, 2023 included in our Annual Report on Form 10-K filed with the SEC on February 22, 2024 (our "Annual Report").

In September 2022, we announced a global program designed to accelerate the growth of our business ("Project Matterhorn"). See Note 11.

We have been organized and have operated as a real estate investment trust for United States federal income tax purposes beginning with our taxable year ended December 31, 2014.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. CASH AND CASH EQUIVALENTS

Cash and cash equivalents include cash on hand and cash invested in highly liquid short-term securities, which have remaining maturities at the date of purchase of less than 90 days. Cash and cash equivalents are carried at cost, which approximates fair value.

B. ACCOUNTS RECEIVABLE

We maintain an allowance for doubtful accounts and a credit memo reserve for estimated losses resulting from the potential inability of our customers to make required payments and potential disputes regarding billing and service issues. The rollforward of the allowance for doubtful accounts and credit memo reserves for the three months ended March 31, 2024 is as follows:

Balance as of December 31, 2023	$	74,762
Credit memos charged to revenue	24,035
Allowance for bad debts charged to expense	14,338
Deductions and other(1)	(35,722)
Balance as of March 31, 2024	$	77,413

(1)Primarily consists of the issuance of credit memos, the write-off of accounts receivable and the impact associated with currency translation adjustments.

IRON MOUNTAIN MARCH 31, 2024 FORM 10-Q 7

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

C. LEASES

We lease facilities for certain warehouses, data centers and office space. We also have land leases, including those on which certain facilities are located.

Operating and financing lease right-of-use assets and lease liabilities as of March 31, 2024 and December 31, 2023 are as follows:

DESCRIPTION	MARCH 31, 2024		DECEMBER 31, 2023
Assets:
Operating lease right-of-use assets	$	2,677,803	$	2,696,024
Financing lease right-of-use assets, net of accumulated depreciation(1)	318,753		304,600
Liabilities:
Current
Operating lease liabilities	$	301,344	$	291,795
Financing lease liabilities(1)	39,973		39,089
Long-term
Operating lease liabilities	$	2,525,552	$	2,562,394
Financing lease liabilities(1)	323,653		310,776

(1)Financing lease right-of-use assets, current financing lease liabilities and long-term financing lease liabilities are included within Property, plant and equipment, net, Current portion of long-term debt and Long-term debt, net of current portion, respectively, within our Condensed Consolidated Balance Sheets.

The components of the lease expense for the three months ended March 31, 2024 and 2023 are as follows:

	THREE MONTHS ENDED MARCH 31,
DESCRIPTION	2024		2023
Operating lease cost(1)	$	171,746	$	155,873
Financing lease cost:
Depreciation of financing lease right-of-use assets	$	10,944	$	10,008
Interest expense for financing lease liabilities	5,221		4,341

(1)Operating lease cost, the majority of which is included in Cost of sales, includes variable lease costs of $38,094 and $31,580 for the three months ended March 31, 2024 and 2023, respectively.

Other information: Supplemental cash flow information relating to our leases for the three months ended March 31, 2024 and 2023 is as follows:

	THREE MONTHS ENDED MARCH 31,
CASH PAID FOR AMOUNTS INCLUDED IN MEASUREMENT OF LEASE LIABILITIES:	2024		2023
Operating cash flows used in operating leases	$	117,336	$	108,723
Operating cash flows used in financing leases (interest)	5,221		4,341
Financing cash flows used in financing leases	10,679		11,714
NON-CASH ITEMS:
Operating lease modifications and reassessments	$	(262)	$	18,163
New operating leases (including acquisitions and sale-leaseback transactions)	64,556		113,853

IRON MOUNTAIN MARCH 31, 2024 FORM 10-Q 8

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

D. GOODWILL

Our reporting units as of December 31, 2023 are described in detail in Note 2.l. to Notes to Consolidated Financial Statements included in our Annual Report.

The changes in the carrying value of goodwill attributable to each reportable segment and Corporate and Other (as defined in Note 9) for the three months ended March 31, 2024 are as follows:

	GLOBAL RIM BUSINESS		GLOBAL DATA CENTER BUSINESS		CORPORATE AND OTHER		TOTAL CONSOLIDATED
Goodwill balance, net of accumulated amortization, as of December 31, 2023	$	3,911,945	$	478,930	$	627,037	$	5,017,912
Tax deductible goodwill acquired during the period	—		—		131,695		131,695
Fair value and other adjustments	143		(186)		—		(43)
Currency effects	(38,502)		(2,995)		(594)		(42,091)
Goodwill balance, net of accumulated amortization, as of March 31, 2024	$	3,873,586	$	475,749	$	758,138	$	5,107,473
Accumulated goodwill impairment balance as of March 31, 2024	$	132,409	$	—	$	26,011	$	158,420

IRON MOUNTAIN MARCH 31, 2024 FORM 10-Q 9

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

E. FAIR VALUE MEASUREMENTS

The assets and liabilities carried at fair value measured on a recurring basis as of March 31, 2024 and December 31, 2023 are as follows:

			FAIR VALUE MEASUREMENTS AT MARCH 31, 2024 USING
DESCRIPTION	TOTAL CARRYING VALUE AT MARCH 31, 2024		QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)(2)
Money Market Funds	$	6,027	$	—	$	6,027	$	—
Time Deposits	32,014		—		32,014		—
Trading Securities	10,662		6,783		3,879		—
Derivative Assets	20,290		—		20,290		—
Deferred Purchase Obligations(1)	113,471		—		—		113,471

			FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2023 USING
DESCRIPTION	TOTAL CARRYING VALUE AT DECEMBER 31, 2023		QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)(2)
Money Market Funds	$	68,008	$	—	$	68,008	$	—
Time Deposits	15,913		—		15,913		—
Trading Securities	9,952		6,149		3,803		—
Derivative Assets	6,359		—		6,359		—
Derivative Liabilities	5,769		—		5,769		—
Deferred Purchase Obligations(1)	208,265		—		—		208,265

(1)Primarily relates to the fair values of the deferred purchase obligations associated with the ITRenew Transaction (as defined in Note 3 to Notes to Consolidated Financial Statements included in our Annual Report) and the Regency Transaction (as defined in Note 3).

(2)The following is a rollforward of the Level 3 liabilities presented above for December 31, 2023 through March 31, 2024:

Balance as of December 31, 2023	$	208,265
Additions	63,600
Payments	(158,677)
Other changes, including accretion	283
Balance as of March 31, 2024	$	113,471

The level 3 valuations of the deferred purchase obligations were determined utilizing Monte-Carlo models and take into account our forecasted projections as they relate to the underlying performance of the respective businesses. The Monte-Carlo simulation model applied in assessing the fair value of the deferred purchase obligation associated with the ITRenew Transaction incorporates assumptions as to expected gross profits over the achievement period, including adjustments for the volatility of timing and amount of the associated revenue and costs, as well as discount rates that account for the risk of the arrangement and overall market risks. The Monte-Carlo simulation model applied in assessing the fair value of the deferred purchase obligation associated with the Regency Transaction incorporates assumptions as to expected revenue over the achievement period, including adjustments for volatility and timing, as well as discount rates that account for the risk of the arrangement and overall market risks. Any material change to these assumptions may result in a significantly higher or lower fair value of the related deferred purchase obligation.

There were no material items that were measured at fair value on a non-recurring basis at March 31, 2024 and December 31, 2023 other than (i) those disclosed in Note 2.p. to Notes to Consolidated Financial Statements included in our Annual Report and (ii) assets acquired and liabilities assumed through our acquisitions that occurred during the three months ended March 31, 2024 (see Note 3), both of which are based on Level 3 inputs.

IRON MOUNTAIN MARCH 31, 2024 FORM 10-Q 10

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

F. ACCUMULATED OTHER COMPREHENSIVE ITEMS, NET

The changes in Accumulated other comprehensive items, net for the three months ended March 31, 2024 and 2023 are as follows:

	THREE MONTHS ENDED MARCH 31, 2024						THREE MONTHS ENDED MARCH 31, 2023
	FOREIGN CURRENCY TRANSLATION AND OTHER ADJUSTMENTS		DERIVATIVE FINANCIAL INSTRUMENTS		TOTAL		FOREIGN CURRENCY TRANSLATION AND OTHER ADJUSTMENTS		DERIVATIVE FINANCIAL INSTRUMENTS		TOTAL
Beginning of Period	$	(373,628)	$	2,472	$	(371,156)	$	(454,509)	$	12,506	$	(442,003)
Other comprehensive (loss) income:
Foreign currency translation and other adjustments	(66,501)		—		(66,501)		39,677		—		39,677
Change in fair value of derivative instruments	—		11,388		11,388		—		(3,442)		(3,442)
Reclassifications from accumulated other comprehensive items, net	—		(2,528)		(2,528)		—		—		—
Total other comprehensive (loss) income	(66,501)		8,860		(57,641)		39,677		(3,442)		36,235
End of Period	$	(440,129)	$	11,332	$	(428,797)	$	(414,832)	$	9,064	$	(405,768)

G. REVENUES

The costs associated with the initial movement of customer records into physical storage and certain commissions are considered costs to fulfill or obtain customer contracts (collectively, "Contract Costs"). Contract Costs as of March 31, 2024 and December 31, 2023 are as follows:

	MARCH 31, 2024						DECEMBER 31, 2023
	GROSS CARRYING AMOUNT		ACCUMULATED AMORTIZATION		NET CARRYING AMOUNT		GROSS CARRYING AMOUNT		ACCUMULATED AMORTIZATION		NET CARRYING AMOUNT
Intake Costs asset	$	76,233	$	(38,593)	$	37,640	$	76,150	$	(39,617)	$	36,533
Commissions asset	171,254		(66,803)		104,451		156,639		(64,279)		92,360

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

DESCRIPTION	LOCATION IN BALANCE SHEET	MARCH 31, 2024		DECEMBER 31, 2023
Deferred revenue - Current	Deferred revenue	$	332,801	$	325,665
Deferred revenue - Long-term	Other Long-term Liabilities	97,075		100,770

DATA CENTER LESSOR CONSIDERATIONS

Our Global Data Center Business features storage rental provided to customers at contractually specified rates over a fixed contractual period, which are accounted for in accordance with Accounting Standards Codification 842. Storage rental revenue associated with our Global Data Center Business for the three months ended March 31, 2024 and 2023 is as follows:

	THREE MONTHS ENDED MARCH 31,
	2024		2023
Storage rental revenue	$	140,028	$	107,435

IRON MOUNTAIN MARCH 31, 2024 FORM 10-Q 11

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

H. STOCK-BASED COMPENSATION

Our stock-based compensation expense includes the cost of stock options, restricted stock units ("RSUs") and performance units ("PUs") (together, the "Employee Stock-Based Awards").

STOCK-BASED COMPENSATION EXPENSE

Stock-based compensation expense for the Employee Stock-Based Awards for the three months ended March 31, 2024 and 2023 is as follows:

	THREE MONTHS ENDED MARCH 31,
	2024		2023
Stock-based compensation expense	$	14,039	$	12,509

In March 2024, we granted approximately 83,100, 582,800 and 444,000 stock options, RSUs and PUs, respectively, under the 2014 Plan (as defined in Note 2.t to Notes to Consolidated Financial Statements included in our Annual Report).

As of March 31, 2024, unrecognized compensation cost related to the unvested portion of our Employee Stock-Based Awards, inclusive of our estimated achievement of the performance metrics, is $132,940.

I. ACQUISITION AND INTEGRATION COSTS

Acquisition and integration costs represent operating expenditures directly associated with the closing and integration activities of our business acquisitions that have closed, or are highly probable of closing, and include (i) advisory, legal and professional fees to complete business acquisitions and (ii) costs to integrate acquired businesses into our existing operations, including move, severance and system integration costs (collectively, "Acquisition and Integration Costs").

Acquisition and Integration Costs for the three months ended March 31, 2024 and 2023 are as follows:

	THREE MONTHS ENDED MARCH 31,
	2024		2023
Acquisition and Integration Costs	$	7,809	$	1,595

J. LOSS (GAIN) ON DISPOSAL/WRITE-DOWN OF PROPERTY, PLANT AND EQUIPMENT, NET

Loss (gain) on disposal/write-down of property, plant and equipment, net for the three months ended March 31, 2024 and 2023 is as follows:

	THREE MONTHS ENDED MARCH 31,
	2024		2023(1)
Loss (gain) on disposal/write-down of property, plant and equipment, net	$	389	$	(13,061)

(1)    The gains for the three months ended March 31, 2023 primarily consist of a gain of approximately $18,500 associated with a sale-leaseback transaction of a facility in Singapore. The gains recognized during 2023 are the result of our program to monetize a small portion of our industrial assets through sale and sale-leaseback transactions. The terms for these leases are consistent with the terms of our lease portfolio, which are disclosed in detail in Note 2.j. to Notes to Consolidated Financial Statements included in our Annual Report.

IRON MOUNTAIN MARCH 31, 2024 FORM 10-Q 12

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

K. OTHER (INCOME) EXPENSE, NET

Other (income) expense, net for the three months ended March 31, 2024 and 2023 consists of the following:

	THREE MONTHS ENDED MARCH 31,
DESCRIPTION	2024		2023
Foreign currency transaction (gains) losses, net	$	(16,379)	$	14,424
Other, net	3,849		6,776
Other (Income) Expense, Net	$	(12,530)	$	21,200

L. INCOME TAXES

We provide for income taxes during interim periods based on our estimate of the effective tax rate for the year. Our effective tax rates for the three months ended March 31, 2024 and 2023 are as follows:

	THREE MONTHS ENDED MARCH 31,
	2024		2023
Effective Tax Rate(1)	17.7	%	20.4	%

(1)The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three months ended March 31, 2024 and 2023 were the benefits derived from the dividends paid deduction and the differences in the tax rates to which our foreign earnings are subject.

M. INCOME (LOSS) PER SHARE—BASIC AND DILUTED

The calculations of basic and diluted income (loss) per share for the three months ended March 31, 2024 and 2023 are as follows:

	THREE MONTHS ENDED MARCH 31,
	2024		2023
Net Income (Loss)	$	77,025	$	65,535
Less: Net Income (Loss) Attributable to Noncontrolling Interests	2,964		940
Net Income (Loss) Attributable to Iron Mountain Incorporated (utilized in numerator of Earnings Per Share calculation)	$	74,061	$	64,595
Weighted-average shares—basic	292,746,000		291,442,000
Effect of dilutive potential stock options	1,886,000		1,216,000
Effect of dilutive potential RSUs and PUs	589,000		391,000
Weighted-average shares—diluted	295,221,000		293,049,000
Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated:
Basic	$	0.25	$	0.22
Diluted	$	0.25	$	0.22
Antidilutive stock options, RSUs and PUs excluded from the calculation	365,764		145,730

IRON MOUNTAIN MARCH 31, 2024 FORM 10-Q 13

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

3. ACQUISITIONS

REGENCY TECHNOLOGIES

On January 3, 2024, in order to expand our asset lifecycle management ("ALM") business, we acquired 100% of RSR Partners, LLC (doing business as Regency Technologies), an information technology asset disposition services provider with operations throughout the United States, for an initial purchase price of approximately $200,000, with $125,000 paid at closing, funded by borrowings under the Revolving Credit Facility (as defined in Note 6), and the remaining $75,000 (the “January 2025 Payment”) to be paid in January 2025 (the "Regency Transaction"). The present value of the January 2025 Payment is included as a component of Accrued expenses and other current liabilities in our Condensed Consolidated Balance Sheet at March 31, 2024. The agreement for the Regency Transaction also includes a performance-based contingent consideration with a potential earnout range from zero to $200,000 based upon achievement of certain three-year cumulative revenue targets, which would be payable in 2027, if earned (the “Regency Deferred Purchase Obligation”). The preliminary fair value estimate of the Regency Deferred Purchase Obligation as of the date of the acquisition is approximately $78,400. The present value of the Regency Deferred Purchase Obligation is included as a component of Other Long-term Liabilities in our Condensed Consolidated Balance Sheet at March 31, 2024. Subsequent increases or decreases in the fair value estimate of the Regency Deferred Purchase Obligation, as well as the accretion of the discount to present value, will be included as a component of Other (income) expense, net in our Condensed Consolidated Statements of Operations until the deferred purchase obligation is settled or paid. Subsequent to the acquisition, the results of Regency Technologies are included as a component of Corporate and Other.

PRELIMINARY PURCHASE PRICE ALLOCATION

A summary of the cumulative consideration paid and the preliminary allocation of the purchase price paid for all of our acquisitions closed during the three months ended March 31, 2024 is as follows:

	THREE MONTHS ENDED MARCH 31, 2024
Cash Paid (gross of cash acquired)	$	125,000
Deferred Purchase Obligations, Purchase Price Holdbacks and Other(1)	133,713
Total Consideration	258,713
Fair Value of Identifiable Assets Acquired(2)	155,259
Fair Value of Identifiable Liabilities Acquired	(28,241)
Goodwill Initially Recorded(3)	$	131,695

(1)Consists of the acquisition-date present values of the Regency Deferred Purchase Obligation and the January 2025 Payment.

(2)Assets acquired include a customer and supplier relationship intangible asset, which has a fair value of $108,000 and a weighted average life of approximately 20 years.

(3)Goodwill 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.

The preliminary purchase price allocations that are not finalized as of March 31, 2024 relate to the final assessment of the fair values of property, plant and equipment and intangible assets associated with the acquisitions we closed during the three months ended March 31, 2024. 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. Purchase price allocation adjustments recorded during the three months ended March 31, 2024 were not material to our balance sheet or results from operations.

IRON MOUNTAIN MARCH 31, 2024 FORM 10-Q 14

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

4. INVESTMENTS

JOINT VENTURE SUMMARY

Our joint venture with AGC Equity Partners (the "Frankfurt JV") is accounted for as an equity method investment and is presented as a component of Other within Other assets, net in our Condensed Consolidated Balance Sheets. The carrying value and equity interest in the Frankfurt JV at March 31, 2024 and December 31, 2023 is as follows:

	MARCH 31, 2024				DECEMBER 31, 2023
	CARRYING VALUE		EQUITY INTEREST		CARRYING VALUE		EQUITY INTEREST
Frankfurt JV	$	55,757	20	%	$	57,874	20	%

5. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Derivative instruments we are party to include: (i) interest rate swap agreements (which are designated as cash flow hedges) and (ii) cross-currency swap agreements (which are designated as net investment hedges).

INTEREST RATE SWAP AGREEMENTS DESIGNATED AS CASH FLOW HEDGES

We utilize interest rate swap agreements designated as cash flow hedges to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness. Certain of our interest rate swap agreements have notional amounts that will increase with the underlying hedged transaction. Under our interest rate swap agreements, we receive variable rate interest payments associated with the notional amount of each interest rate swap, based upon the one-month Secured Overnight Financing Rate, in exchange for the payment of fixed interest rates as specified in the interest rate swap agreements. Our interest rate swap agreements are marked to market at the end of each reporting period, representing the fair values of the interest rate swap agreements, and any changes in fair value are recognized as a component of Accumulated other comprehensive items, net. Unrealized gains are recognized as assets, while unrealized losses are recognized as liabilities.

As of March 31, 2024 and December 31, 2023, we have approximately $1,104,000 and $520,000, respectively, in notional value outstanding on our interest rate swap agreements, with maturity dates ranging from October 2025 through February 2027.

CROSS-CURRENCY SWAP AGREEMENTS DESIGNATED AS A HEDGE OF NET INVESTMENT

We utilize cross-currency interest rate swaps to hedge the variability of exchange rate impacts between the United States dollar and the Euro. As of both March 31, 2024 and December 31, 2023, we have approximately $509,200 in notional value outstanding on cross-currency interest rate swaps, with maturity dates ranging from August 2024 through February 2026.

We have designated these cross-currency swap agreements as hedges of net investments in certain of our Euro denominated subsidiaries and they require an exchange of the notional amounts at maturity. These cross-currency swap agreements are marked to market at the end of each reporting period, representing the fair values of the cross-currency swap agreements, and any changes in fair value are recognized as a component of Accumulated other comprehensive items, net. Unrealized gains are recognized as assets while unrealized losses are recognized as liabilities. The excluded component of our cross-currency swap agreements is recorded in Accumulated other comprehensive items, net and amortized to interest expense on a straight-line basis.

IRON MOUNTAIN MARCH 31, 2024 FORM 10-Q 15

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

5. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (CONTINUED)

The fair values of derivative instruments recognized in our Condensed Consolidated Balance Sheets at March 31, 2024 and December 31, 2023, by derivative instrument, are as follows:

	MARCH 31, 2024				DECEMBER 31, 2023
DERIVATIVE INSTRUMENTS(1)	Assets		Liabilities		Assets		Liabilities
Cash Flow Hedges(2)
Interest rate swap agreements	$	9,716	$	—	$	1,601	$	(3,273)
Net Investment Hedges(3)
Cross-currency swap agreements	10,574		—		4,758		(2,496)

(1)Our derivative assets are included as a component of (i) Prepaid expenses and other or (ii) Other within Other assets, net and our derivative liabilities are included as a component of (i) Accrued expenses and other current liabilities or (ii) Other long-term liabilities in our Condensed Consolidated Balance Sheets. As of March 31, 2024, $1,086 is included within Prepaid expenses and other and $19,204 is included within Other assets. As of December 31, 2023, $6,359 is included within Other assets, $2,496 is included within Accrued expenses and other liabilities and $3,273 is included within Other long-term liabilities.

(2)As of March 31, 2024, cumulative net gains recorded within Accumulated other comprehensive items, net associated with our interest rate swap agreements are $11,332.

(3)As of March 31, 2024, cumulative net gains recorded within Accumulated other comprehensive items, net associated with our cross-currency swap agreements are $44,947, which include $34,373 related to the excluded component of our cross-currency swap agreements.

Unrealized gains (losses) recognized in Accumulated other comprehensive items, net during the three months ended March 31, 2024 and 2023, by derivative instrument, are as follows:

	THREE MONTHS ENDED MARCH 31,
DERIVATIVE INSTRUMENTS	2024		2023
Cash Flow Hedges
Interest rate swap agreements	$	11,388	$	(3,442)
Net Investment Hedges
Cross-currency swap agreements	8,312		(8,803)
Cross-currency swap agreements (excluded component)	4,176		5,834

Gains (losses) recognized in Net income (loss) during the three months ended March 31, 2024 and 2023, by derivative instrument, are as follows:

		THREE MONTHS ENDED MARCH 31,
DERIVATIVE INSTRUMENTS	Location of gain (loss)	2024		2023
Cash Flow Hedges
Interest rate swap agreements	Interest expense	$	2,528	$	—
Net Investment Hedges
Cross-currency swap agreements (excluded component)	Interest expense	(4,176)		(5,834)

IRON MOUNTAIN MARCH 31, 2024 FORM 10-Q 16

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

6. DEBT

Long-term debt is as follows:

	MARCH 31, 2024								DECEMBER 31, 2023
	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)	$	660,000	$	(4,265)	$	655,735	$	660,000	$	—	$	(4,621)	$	(4,621)	$	—
Term Loan A(1)	225,000		—		225,000		225,000		228,125		—		228,125		228,125
Term Loan B due 2026(1)	657,605		(2,186)		655,419		658,000		659,298		(2,498)		656,800		659,750
Term Loan B due 2031(1)	1,188,318		(12,610)		1,175,708		1,197,000		1,191,000		(13,026)		1,177,974		1,200,000
Virginia 3 Term Loans(2)	165,555		(4,206)		161,349		165,555		101,218		(4,641)		96,577		101,218
Virginia 4/5 Term Loans(2)	49,994		(5,089)		44,905		49,994		16,338		(5,892)		10,446		16,338
Australian Dollar Term Loan(2)	188,064		(426)		187,638		189,327		197,743		(482)		197,261		199,195
UK Bilateral Revolving Credit Facility(2)	176,737		—		176,737		176,737		178,239		—		178,239		178,239
GBP Notes(2)	504,963		(1,510)		503,453		487,809		509,254		(1,763)		507,491		489,108
47/8% Notes due 2027(2)	1,000,000		(4,976)		995,024		960,000		1,000,000		(5,332)		994,668		967,500
51/4% Notes due 2028(2)	825,000		(4,724)		820,276		794,063		825,000		(5,019)		819,981		800,250
5% Notes due 2028(2)	500,000		(3,135)		496,865		476,250		500,000		(3,316)		496,684		478,750
7% Notes due 2029(2)	1,000,000		(10,281)		989,719		1,015,000		1,000,000		(10,813)		989,187		1,027,500
47/8% Notes due 2029(2)	1,000,000		(7,956)		992,044		932,500		1,000,000		(8,318)		991,682		945,000
51/4% Notes due 2030(2)	1,300,000		(9,527)		1,290,473		1,225,250		1,300,000		(9,903)		1,290,097		1,241,500
41/2% Notes(2)	1,100,000		(8,607)		1,091,393		987,250		1,100,000		(8,917)		1,091,083		995,500
5% Notes due 2032(2)	750,000		(10,880)		739,120		682,500		750,000		(11,206)		738,794		684,375
55/8% Notes(2)	600,000		(4,840)		595,160		567,000		600,000		(4,985)		595,015		567,000
Real Estate Mortgages, Financing Lease Liabilities and Other	552,265		(678)		551,587		552,265		519,907		(403)		519,504		519,907
Accounts Receivable Securitization Program	360,000		(265)		359,735		360,000		358,500		(317)		358,183		358,183
Total Long-term Debt	12,803,501		(96,161)		12,707,340				12,034,622		(101,452)		11,933,170
Less Current Portion	(118,771)		—		(118,771)				(120,670)		—		(120,670)
Long-term Debt, Net of Current Portion	$	12,684,730	$	(96,161)	$	12,588,569			$	11,913,952	$	(101,452)	$	11,812,500

(1)Collectively, the “Credit Agreement”. The Credit Agreement consists of a revolving credit facility (the “Revolving Credit Facility”), a term loan A facility (the “Term Loan A”) and two term loan B facilities (the "Term Loan B due 2026" and the "Term Loan B due 2031"). The Revolving Credit Facility and the Term Loan A are scheduled to mature on March 18, 2027. The Term Loan B due 2026 is scheduled to mature on January 2, 2026. The Term Loan B due 2031 is scheduled to mature on January 31, 2031. The remaining amount available for borrowing under the Revolving Credit Facility as of March 31, 2024 was $1,585,174 (which represents the maximum availability as of such date). The weighted average interest rate in effect under the Revolving Credit Facility was 7.3% as of March 31, 2024.

(2)Each as defined in Note 7 to Notes to Consolidated Financial Statements included in our Annual Report.

See Note 7 to Notes to Consolidated Financial Statements included in our Annual Report for additional information regarding our 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, which are consistent with the levels of the fair value hierarchy used to determine the fair value of our debt as of March 31, 2024).

LETTERS OF CREDIT

As of March 31, 2024, we had outstanding letters of credit totaling $38,796, of which $4,826 reduce our borrowing capacity under the Revolving Credit Facility. The letters of credit expire at various dates between May 2024 and April 2025.

IRON MOUNTAIN MARCH 31, 2024 FORM 10-Q 17

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

6. DEBT (CONTINUED)

DEBT COVENANTS

The Credit Agreement, our bond indentures and other agreements governing our indebtedness contain certain restrictive financial and operating covenants, including covenants that restrict our ability to complete acquisitions, pay cash dividends, incur indebtedness, make investments, sell assets and take other specified corporate actions. The covenants do not contain a rating trigger. Therefore, a change in our debt rating would not trigger a default under the Credit Agreement, our bond indentures or other agreements governing our indebtedness. The Credit Agreement requires that we satisfy a net total lease adjusted leverage ratio and a fixed charge coverage ratio on a quarterly basis, and our bond indentures require that, among other things, we satisfy a leverage ratio (not lease adjusted) or a fixed charge coverage ratio (not lease adjusted) as a condition to taking actions such as paying dividends and incurring indebtedness.

The Credit Agreement uses earnings before interest, taxes, depreciation and amortization and rent expense ("EBITDAR") based calculations and the bond indentures use earnings before interest, taxes, depreciation and amortization ("EBITDA") based calculations as the primary measures of financial performance for purposes of calculating leverage and fixed charge coverage ratios. The EBITDAR- and EBITDA-based leverage calculations include our consolidated subsidiaries, other than those we have designated as "Unrestricted Subsidiaries" as defined in the Credit Agreement and bond indentures. Generally, the Credit Agreement and the bond indentures use a trailing four fiscal quarter basis for purposes of the relevant calculations and require certain adjustments and exclusions for purposes of those calculations, which make the calculation of financial performance for purposes of those calculations under the Credit Agreement and bond indentures not directly comparable to Adjusted EBITDA as presented herein. We are in compliance with our leverage and fixed charge coverage ratios under the Credit Agreement, our bond indentures and other agreements governing our indebtedness as of March 31, 2024. Noncompliance with these leverage and fixed charge coverage ratios would have a material adverse effect on our financial condition and liquidity.

7. COMMITMENTS AND CONTINGENCIES

We are involved in litigation from time to time in the ordinary course of business, including litigation arising from damage to customer assets in our facilities caused by fires and other natural disasters. While the outcome of litigation is inherently uncertain, we do not believe any current litigation will have a material adverse effect on our consolidated financial condition, results of operations or cash flows.

We have estimated a reasonably possible range for all loss contingencies and believe it is reasonably possible that we could incur aggregate losses in addition to amounts currently accrued for all matters up to an additional $15,000 over the next several years, of which certain amounts would be covered by insurance or indemnity arrangement.

8. STOCKHOLDERS' EQUITY MATTERS

In fiscal year 2023 and the three months ended March 31, 2024, our board of directors declared the following dividends:

DECLARATION DATE	DIVIDEND PER SHARE		RECORD DATE	TOTAL AMOUNT		PAYMENT DATE
February 23, 2023	$	0.6185	March 15, 2023	$	180,339	April 5, 2023
May 4, 2023	0.6185		June 15, 2023	180,493		July 6, 2023
August 3, 2023	0.6500		September 15, 2023	189,730		October 5, 2023
November 2, 2023	0.6500		December 15, 2023	189,886		January 4, 2024
February 22, 2024	0.6500		March 15, 2024	190,506		April 4, 2024

On May 2, 2024, we declared a dividend to our stockholders of record as of June 17, 2024 of $0.65 per share, payable on July 5, 2024.

IRON MOUNTAIN MARCH 31, 2024 FORM 10-Q 18

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

9. SEGMENT INFORMATION

Our reportable segments as of December 31, 2023 are described in Note 11 to Notes to Consolidated Financial Statements included in our Annual Report and are as follows:

•Global RIM Business

•Global Data Center Business

The remaining activities of our business consist primarily of our Fine Arts and ALM businesses and other corporate items ("Corporate and Other").

The operations associated with acquisitions completed during the first three months of 2024 have been incorporated into our existing reportable segments.

An analysis of our business segment information and reconciliation to the accompanying Condensed Consolidated Financial Statements for the three months ended March 31, 2024 and 2023 is as follows:

	THREE MONTHS ENDED MARCH 31,
	2024		2023
Global RIM Business
Total Revenues	$	1,210,157	$	1,126,526
Adjusted EBITDA	526,268		477,784
Global Data Center Business
Total Revenues	$	143,937	$	112,305
Adjusted EBITDA	61,568		50,635
Corporate and Other
Total Revenues	$	122,769	$	75,518
Adjusted EBITDA	(68,981)		(67,611)
Total Consolidated
Total Revenues	$	1,476,863	$	1,314,349
Adjusted EBITDA	518,855		460,808

IRON MOUNTAIN MARCH 31, 2024 FORM 10-Q 19

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

9. SEGMENT INFORMATION (CONTINUED)

Adjusted EBITDA for each segment is defined as net income (loss) before interest expense, net, provision (benefit) for income taxes, depreciation and amortization (inclusive of our share of Adjusted EBITDA from our unconsolidated joint ventures), and excluding certain items we do not believe to be indicative of our core operating results, specifically:

EXCLUDED
•Acquisition and Integration Costs •Restructuring and other transformation •Loss (gain) on disposal/write-down of property, plant and equipment, net (including real estate)	•Other (income) expense, net •Stock-based compensation expense

Internally, we use Adjusted EBITDA as the basis for evaluating the performance of, and allocating resources to, our operating segments.

A reconciliation of Net Income (Loss) to Adjusted EBITDA on a consolidated basis for the three months ended March 31, 2024 and 2023 is as follows:

	THREE MONTHS ENDED MARCH 31,
	2024		2023
Net Income (Loss)	$	77,025	$	65,535
Add/(Deduct):
Interest expense, net	164,519		137,169
Provision (benefit) for income taxes	16,609		16,758
Depreciation and amortization	209,555		182,094
Acquisition and Integration Costs	7,809		1,595
Restructuring and other transformation	40,767		36,913
Loss (gain) on disposal/write-down of property, plant and equipment, net (including real estate)	389		(13,061)
Other (income) expense, net, excluding our share of losses (gains) from our unconsolidated joint ventures	(13,110)		17,491
Stock-based compensation expense	14,039		12,509
Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures	1,253		3,805
Adjusted EBITDA	$	518,855	$	460,808

IRON MOUNTAIN MARCH 31, 2024 FORM 10-Q 20

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

9. SEGMENT INFORMATION (CONTINUED)

Information as to our revenues by product and service lines by segment for the three months ended March 31, 2024 and 2023 is as follows:

	THREE MONTHS ENDED MARCH 31,
	2024		2023
Global RIM Business
Records Management(1)	$	936,652	$	867,988
Data Management(1)	132,050		129,594
Information Destruction(1)(2)	141,455		128,944
Data Center(1)	—		—
Global Data Center Business
Records Management(1)	$	—	$	—
Data Management(1)	—		—
Information Destruction(1)	—		—
Data Center(1)	143,937		112,305
Corporate and Other
Records Management(1)	$	39,072	$	34,348
Data Management(1)	—		—
Information Destruction(1)(3)	83,697		41,170
Data Center(1)	—		—