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Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. PRINCIPLES OF CONSOLIDATION
The accompanying financial statements reflect our financial position, results of operations, comprehensive income (loss), (deficit) equity and cash flows on a consolidated basis. The accompanying financial statements include the results of those entities over which we have a controlling financial interest or of which we are deemed to be the primary beneficiary. All intercompany transactions and account balances have been eliminated.
B. USE OF ESTIMATES
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires us to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the 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.
C. CHANGES IN PRESENTATION
Certain items previously reported under specific captions within Note 2.i. and Note 9 have been reclassified to conform to the current year presentation.
D. FOREIGN CURRENCY
Local currencies are the functional currencies for our operations outside the United States, with the exception of certain foreign holding companies, whose functional currency is the United States dollar. In those instances where the local currency is the functional currency, assets and liabilities are translated at period-end exchange rates, and revenues and expenses are translated at average exchange rates for the applicable period. See Note 2.r.
E. 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.
F. ALLOWANCE FOR DOUBTFUL ACCOUNTS AND CREDIT MEMO RESERVES
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. We evaluate and monitor the collectability of accounts receivable based on a combination of factors, including historical loss experience, assessments of trends in our aged receivables and credit memo activity, the location of our businesses, the composition of our customer base, our product and service lines, potential future macroeconomic factors, including natural disasters, and reasonable and supportable forecasts for expected future collectability of our outstanding receivables. Continued adjustments will be made, as it becomes evident, should there be any material change to reasonable and supportable forecasts that may impact our likelihood of collection. Our highly diverse global customer base, with no single customer accounting for more than approximately 3% of revenue during the years ended December 31, 2025, 2024 and 2023, limits our exposure to concentration of credit risk. Additionally, we write off uncollectible balances as circumstances warrant, generally no later than one year past due.
The rollforward of the allowance for doubtful accounts and credit memo reserves is as follows:
YEAR ENDED DECEMBER 31,
BALANCE AT
BEGINNING OF
THE YEAR
CREDIT MEMOS
CHARGED TO
REVENUE
ALLOWANCE FOR
BAD DEBTS CHARGED
TO EXPENSE
DEDUCTIONS
AND OTHER(1)
BALANCE AT
END OF
THE YEAR
2025$86,712 $98,594 $56,675 $(134,143)$107,838 
202474,762 104,130 45,123 (137,303)86,712 
202354,143 92,881 32,692 (104,954)74,762 
(1)Primarily consists of the issuance of credit memos, the write-off of accounts receivable and the impact associated with currency translation adjustments.
G. CONCENTRATIONS OF CREDIT RISK
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. We had no significant concentrations of liquid investments as of December 31, 2025 and 2024. As per our risk management investment policy, we limit exposure to concentration of credit risk by limiting the amount invested in any one mutual fund to a maximum of 1% of the fund's total assets or in any one financial institution to a maximum of $75,000. See
H. PREPAID EXPENSES AND ACCRUED EXPENSES
Prepaid expenses totaled $145,257 and $131,615 as of December 31, 2025 and 2024, respectively and taxes receivable totaled $97,289 and $46,523 as of December 31, 2025 and 2024, respectively. There were no other items greater than 5% of Total Current Assets included within Prepaid expenses and other as of December 31, 2025 and 2024.
Accrued expenses and other current liabilities with items greater than 5% of total current liabilities are shown separately and consist of the following:
 DECEMBER 31,
DESCRIPTION20252024
Current portion of operating lease liabilities$319,129 $315,400 
Accrued compensation and benefits253,443 244,499 
Dividends269,563 222,649 
Interest216,717 164,336 
Deferred purchase obligations, purchase price holdbacks and other23,621 137,207 
Other208,196 282,477 
Accrued expenses and other current liabilities$1,290,669 $1,366,568 
I. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are stated at cost and depreciated using the straight-line method with the following useful lives (in years):
DESCRIPTIONRANGE
Buildings, building improvements and data center infrastructure
5 to 40
Leasehold improvements
5 to 20 or life of the lease (whichever is shorter)
Racking structures
1 to 20 or life of the lease (whichever is shorter)
Warehouse equipment/vehicles
1 to 10
Furniture and fixtures and computer hardware
1 to 10
Software
1 to 7
Property, plant and equipment (including financing leases in the respective categories), at cost, consist of the following:
 DECEMBER 31,
DESCRIPTION20252024
Land$724,386 $670,529 
Buildings, building improvements and data center infrastructure6,461,346 4,768,835 
Leasehold improvements1,665,589 1,536,919 
Racking structures2,057,544 1,978,923 
Warehouse equipment/vehicles760,256 644,340 
Furniture and fixtures and computer hardware387,754 331,856 
Software569,987 465,689 
Construction in progress1,830,473 1,588,906 
Property, plant and equipment$14,457,335 $11,985,997 
Minor maintenance costs are expensed as incurred. Major improvements which (i) extend the life, (ii) increase the capacity or functionality or (iii) improve the safety or the efficiency of property owned are capitalized and depreciated. Major improvements to buildings under operating leases are capitalized as leasehold improvements and depreciated. Major improvements to buildings under financing leases are capitalized as building improvements and depreciated.
CAPITALIZED INTEREST
We capitalize interest expense during the active construction period of major capital projects. Capitalized interest is added to the cost of the underlying assets and is amortized over the useful lives of the assets. During the years ended December 31, 2025, 2024 and 2023, capitalized interest is as follows:
YEAR ENDED DECEMBER 31,
202520242023
Capitalized interest$78,367 $63,333 $44,845 
INTERNAL USE SOFTWARE
We develop various software applications for internal use. Computer software costs associated with internal use software are expensed as incurred until certain capitalization criteria are met. Third party consulting costs, as well as payroll and related costs for employees directly associated with, and devoting time to, the development of internal use computer software projects (to the extent time is spent directly on the project) are capitalized. Capitalization of costs, including costs incurred for upgrades and enhancements that provide additional functionality to our existing software, generally begins during the application development stage of the project, which occurs after it is probable that the project will be completed and used to perform the function intended. Capitalization ends when the asset is ready for its intended use. Capitalized internal use software costs are depreciated on a straight-line basis over the expected useful life of the software, commencing when the software is ready for its intended use. Computer software costs that are capitalized are periodically evaluated for impairment.
During the years ended December 31, 2025, 2024 and 2023, capitalized costs associated with the development of internal use computer software projects are as follows:
YEAR ENDED DECEMBER 31,
202520242023
Capitalized costs associated with the development of internal use computer software projects$76,104 $69,055 $64,488 
ASSET RETIREMENT OBLIGATIONS
Entities are required to record the fair value of a liability for an asset retirement obligation in the period in which it is incurred. Asset retirement obligations represent the costs to replace or remove tangible long-lived assets required by law, regulatory rule or contractual agreement. Our asset retirement obligations are primarily the result of requirements under our facility lease agreements which generally have "return to original condition" clauses which would require us to remove or restore items such as shred pits, vaults, demising walls and office build-outs, among others. The significant assumptions used in estimating our aggregate asset retirement obligations are the timing of removals, the probability of a requirement to perform, estimated cost and associated expected inflation rates that are consistent with historical rates and credit-adjusted risk-free rates that approximate our incremental borrowing rate. Our asset retirement obligations at December 31, 2025 and 2024 were $62,972 and $43,844, respectively, and are included in Other Long-term Liabilities in our Consolidated Balance Sheets.
J. LEASES
We lease facilities for certain warehouses, data centers and office spaces. 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 generally 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 typically have lease terms ranging from one to seven years.
We account for all leases, both operating and financing, in accordance with Accounting Standards Codification ("ASC") Topic 842, Leases ("ASC 842"). Our accounting policy 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 Consolidated Balance Sheets. We recognize the lease payments for those leases with an initial term of 12 months or less in our 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 utilize the rate stated in the lease (in the limited circumstances when such rate is explicitly stated) or, if no rate is explicitly stated, we utilize a rate that reflects our securitized incremental borrowing rate by geography for the lease term. We 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 our Consolidated Balance Sheets, and instead, are reflected as an expense in the period incurred.
Operating and financing lease right-of-use assets and lease liabilities as of December 31, 2025 and 2024 are as follows:
 DECEMBER 31,
DESCRIPTION20252024
Assets:
Operating lease right-of-use assets(1)
$2,465,196 $2,489,893 
Financing lease right-of-use assets, net of accumulated depreciation(2)(3)
470,803 359,265 
Liabilities:
Current
Operating lease liabilities$319,129 $315,400 
Financing lease liabilities(3)
56,287 128,397 
Long-term
Operating lease liabilities$2,300,448 $2,334,826 
Financing lease liabilities(3)
470,912 278,444 
(1)At December 31, 2025 and 2024, these assets are comprised of approximately 98% real estate related assets (which include land, buildings, data center infrastructure and racking structures) and 2% non-real estate related assets (which include warehouse equipment, vehicles, furniture and fixtures and computer hardware and software).
(2)At December 31, 2025, these assets are comprised of approximately 56% real estate related assets and 44% non-real estate related assets. At December 31, 2024, these assets are comprised of approximately 58% real estate related assets and 42% non-real estate related assets.
(3)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 Consolidated Balance Sheets.
The components of the lease expense for the years ended December 31, 2025, 2024 and 2023 are as follows:
YEAR ENDED DECEMBER 31,
DESCRIPTION202520242023
Operating lease cost(1)
$708,220 $682,960 $660,889 
Financing lease cost:
Depreciation of financing lease right-of-use assets$63,234 $50,548 $42,089 
Interest expense for financing lease liabilities27,602 21,949 18,638 
(1)Operating lease cost, the majority of which is included in Cost of sales, includes variable lease costs of $186,110, $163,916 and $142,154 for the years ended December 31, 2025, 2024 and 2023, respectively.
Weighted average remaining lease terms and discount rates as of December 31, 2025 and 2024 are as follows:
DECEMBER 31, 2025DECEMBER 31, 2024
OPERATING LEASESFINANCING LEASESOPERATING LEASESFINANCING LEASES
Remaining Lease Term9.7 years9.7 years9.9 years7.8 years
Discount Rate6.9 %6.4 %6.8 %6.3 %
The estimated minimum future lease payments (receipts) as of December 31, 2025 are as follows:
YEAR
OPERATING LEASES(1)
SUBLEASE INCOME
FINANCING LEASES(1)
2026$506,526 $(3,929)$84,725 
2027473,605 (3,481)74,103 
2028419,147 (2,586)109,804 
2029371,756 (1,663)60,671 
2030320,583 (840)134,421 
Thereafter1,602,141 (240)204,290 
Total minimum lease payments (receipts)3,693,758 $(12,739)668,014 
Less amounts representing interest or imputed interest1,074,181 140,815 
Present value of lease obligations$2,619,577 $527,199 
(1)Estimated minimum future lease payments exclude variable common area maintenance charges, insurance and taxes.
Other information: Supplemental cash flow information relating to our leases for the years ended December 31, 2025, 2024 and 2023 is as follows:
YEAR ENDED DECEMBER 31,
CASH PAID FOR AMOUNTS INCLUDED IN MEASUREMENT OF LEASE LIABILITIES:202520242023
Operating cash flows used in operating leases$500,216 $473,474 $450,412 
Operating cash flows used in financing leases (interest)27,602 21,949 18,638 
Financing cash flows used in financing leases57,078 54,366 52,284 
NON-CASH ITEMS:
Operating lease modifications and reassessments$7,983 $29,345 $86,948 
New operating leases (including acquisitions and sale-leaseback transactions) 247,042 118,813 306,479 
K. LONG-LIVED ASSETS
We review long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable. Recoverability of these assets is determined by comparing the sum of the forecasted undiscounted net cash flows of the operation to which the assets relate to their carrying amount. The operations are generally distinguished by the business segment and geographic region in which they operate. If it is determined that we are unable to recover the carrying amount of the assets, the long-lived assets are written down, on a pro rata basis, to fair value. Fair value is determined based on discounted cash flows or appraised values, depending upon the nature of the assets. Long-lived assets, including finite-lived intangible assets, are amortized over their useful lives. Annually, or more frequently if events or circumstances warrant, we assess whether a change in the lives over which long-lived assets, including finite-lived intangible assets, are amortized is necessary.
Loss (gain) on disposal/write-down of property, plant and equipment, net for the years ended December 31, 2025, 2024 and 2023 is as follows:
YEAR ENDED DECEMBER 31,
202520242023
Loss (gain) on disposal/write-down of property, plant and equipment, net
$24,641 $6,196 $(12,825)
Primarily consists of(1):
•Losses related to the disposal of assets associated with facility consolidations.
•Losses related to the disposal of assets associated with facility consolidations.
•Gains associated with sale and sale-leaseback transactions of approximately $19,500, of which approximately $18,500 relates to a sale-leaseback transaction of a facility in Singapore during the first quarter of 2023. These gains are partially offset by losses related to the disposal of assets associated with facility consolidations.
(1) The gain recognized during the year ended December 31, 2023 is 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
L. GOODWILL AND OTHER INDEFINITE-LIVED INTANGIBLE ASSETS
Goodwill and intangible assets with indefinite lives are not amortized but are reviewed annually for impairment, or more frequently if impairment indicators arise. Other than goodwill, we currently have no intangible assets that have indefinite lives and which are not amortized.
We test goodwill annually on October 1, and more frequently if impairment indicators arise that would require an interim test. We have performed our annual goodwill impairment review as of October 1, 2025, 2024 and 2023. We concluded that as of October 1, 2025, 2024 and 2023, goodwill was not impaired.
REPORTING UNITS AS OF OCTOBER 1, 2025 and 2024
Our reporting units at which level we performed our goodwill impairment analysis as of October 1, 2025 and 2024 were as follows:
•North America Records and Information Management ("North America RIM")
•Europe Records and Information Management ("Europe RIM")
•Latin America Records and Information Management ("Latin America RIM")
•Asia Pacific Records and Information Management ("APAC RIM")
•Media and Archive Services
•Global Data Center
•Fine Arts
•ALM
There were no changes to the composition of our reporting units between October 1, 2024 and December 31, 2024 and October 1, 2025 and December 31, 2025.
GOODWILL BY REPORTING UNIT AS OF DECEMBER 31, 2025 and 2024
The carrying value of goodwill, net for each of our reporting units described above as of December 31, 2025 and 2024 is as follows:
SEGMENTREPORTING UNITCARRYING VALUE AS OF DECEMBER 31,
20252024
Global RIM BusinessNorth America RIM$2,686,929 $2,675,999 
Europe RIM600,897 542,521 
Latin America RIM112,870 99,599 
APAC RIM539,522 467,059 
Media and Archive Services33,188 31,696 
Global Data Center BusinessGlobal Data Center482,864 469,461 
Corporate and OtherFine Arts49,197 47,925 
ALM780,334 749,557 
Total$5,285,801 $5,083,817 
The fair value of our reporting units has generally been determined using a combined approach based on the present value of future cash flows (the "Discounted Cash Flow Model") and market multiples (the "Market Approach").
The Discounted Cash Flow Model incorporates significant assumptions including future revenue growth rates, operating margins, discount rates and capital expenditures.
The Market Approach requires us to make assumptions related to Adjusted EBITDA (as defined in Note 10) multiples.
Changes in economic and operating conditions impacting these assumptions or changes in multiples could result in goodwill impairments in future periods. In conjunction with our annual goodwill impairment reviews, we reconcile the sum of the valuations of all of our reporting units to our market capitalization as of such dates.
The changes in the carrying value of goodwill attributable to each reportable segment for the years ended December 31, 2025 and 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 year— — 132,891 132,891 
Non-tax deductible goodwill acquired during the year— — 39,646 39,646 
Fair value and other adjustments372 (186)(186)— 
Currency effects(95,443)(9,283)(1,906)(106,632)
Goodwill balance, net of accumulated amortization, as of December 31, 2024
3,816,874 469,461 797,482 5,083,817 
Tax deductible goodwill acquired during the year— — 17,620 17,620 
Non-tax deductible goodwill acquired during the year46,752 — 12,177 58,929 
Fair value and other adjustments1,100 — (1,464)(364)
Currency effects108,680 13,403 3,716 125,799 
Goodwill balance, net of accumulated amortization, as of December 31, 2025
$3,973,406 $482,864 $829,531 $5,285,801 
Accumulated Goodwill Impairment Balance as of December 31, 2024$132,409 $— $26,011 $158,420 
Accumulated Goodwill Impairment Balance as of December 31, 2025$132,409 $— $26,011 $158,420 
M. FINITE-LIVED INTANGIBLE ASSETS AND LIABILITIES
I. CUSTOMER AND SUPPLIER RELATIONSHIP INTANGIBLE ASSETS
Customer and supplier relationship intangible assets, which are acquired through either business combinations or acquisitions of customer relationships, are generally amortized over periods ranging from 10 to 30 years. Customer and supplier relationship intangible assets are recorded based upon estimates of their fair value.
II. CUSTOMER INDUCEMENTS
Payments that are made to a customer in order to terminate the customer’s storage of records with its current records management vendor ("Permanent Withdrawal Fees"), or direct payments to a customer for which no distinct benefit is received in return, are collectively referred to as "Customer Inducements". Customer Inducements are treated as a reduction of the transaction price over the associated contract terms, which range from one to 10 years, and are included in storage and service revenue in the accompanying Consolidated Statements of Operations. If the customer terminates its relationship with us, the unamortized carrying value of the Customer Inducement intangible asset is charged to revenue. However, in the event of such termination, we generally collect, and record as revenue, Permanent Withdrawal Fees that generally equal or exceed the amount of the unamortized Customer Inducement intangible asset.
III. DATA CENTER INTANGIBLE ASSETS AND LIABILITIES
Finite-lived intangible assets associated with our Global Data Center Business consist of the following:
DATA CENTER IN-PLACE LEASE INTANGIBLE ASSETS AND DATA CENTER TENANT RELATIONSHIP INTANGIBLE ASSETS
Data center in-place lease intangible assets ("Data Center In-Place Leases") and data center tenant relationship intangible assets ("Data Center Tenant Relationships") reflect the value associated with acquiring a data center operation with active tenants as of the date of acquisition. The value of Data Center In-Place Leases is determined based upon an estimate of the economic costs (such as lost revenues, tenant improvement costs, commissions, legal expenses and other costs to acquire new data center leases) avoided by acquiring a data center operation with active tenants. Data Center In-Place Leases are amortized over the weighted average remaining term of the acquired data center leases determined at the time of acquisition and range from five to 10 years. The value of Data Center Tenant Relationships is determined based upon an estimate of the economic costs avoided upon lease renewal of the acquired tenants, based upon expectations of lease renewal. Data Center Tenant Relationships are amortized over the weighted average remaining anticipated life of the relationship with the acquired tenant determined at the time of acquisition and range from six to 13 years.
DATA CENTER ABOVE-MARKET AND BELOW-MARKET IN-PLACE LEASE INTANGIBLE ASSETS
Data center above-market in-place lease intangible assets ("Data Center Above-Market Leases") and data center below-market in-place lease intangible assets ("Data Center Below-Market Leases") are recorded at the net present value of the difference between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of the fair market lease rates for each corresponding in-place lease. Data Center Above-Market Leases and Data Center Below-Market Leases are amortized over the remaining non-cancellable term of the acquired in-place lease to storage revenue and range from 10 to 11 years.
The gross carrying amount and accumulated amortization of our finite-lived intangible assets as of December 31, 2025 and 2024, respectively, are as follows:
DECEMBER 31, 2025DECEMBER 31, 2024
DESCRIPTIONGROSS CARRYING AMOUNTACCUMULATED AMORTIZATIONNET CARRYING AMOUNTGROSS CARRYING AMOUNTACCUMULATED AMORTIZATIONNET CARRYING AMOUNT
Assets:
Customer and supplier relationship intangible assets(1)
$2,429,156 $(1,194,940)$1,234,216 $2,268,949 $(1,035,846)$1,233,103 
Customer inducements(1)
40,457 (22,330)18,127 38,782 (19,706)19,076 
Data center lease-based intangible assets(1)(2)
67,513 (50,249)17,264 138,714 (116,162)22,552 
Third-party commissions asset and other(3)
93,174 (66,735)26,439 86,314 (51,508)34,806 
Liabilities:
Data center below-market leases(4)
$10,774 $(8,380)$2,394 $10,819 $(7,275)$3,544 
(1)Included in Customer and supplier relationship and other intangible assets in the accompanying Consolidated Balance Sheets.
(2)Data center lease-based intangible assets includes Data Center In-Place Leases, Data Center Tenant Relationships and Data Center Above-Market Leases.
(3)Included in Other (within Other Assets, Net) in the accompanying Consolidated Balance Sheets.
(4)Included in Other long-term liabilities in the accompanying Consolidated Balance Sheets.
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 years ended December 31, 2025, 2024 and 2023 is as follows:
 YEAR ENDED DECEMBER 31,
 202520242023
Amortization expense included in depreciation and amortization associated with:   
Customer and supplier relationship intangible assets$163,550 $155,872 $153,128 
Data center in-place leases and tenant relationships7,395 22,304 22,322 
Third-party commissions asset and other16,671 16,478 12,541 
Revenue reduction associated with amortization of:   
Customer inducements and data center above-market and below-market leases$6,151 $5,347 $7,036 
Estimated amortization expense for existing finite-lived intangible assets (excluding Contract Costs, as defined in Note 2.s.) is as follows:
 ESTIMATED AMORTIZATION
YEARINCLUDED IN DEPRECIATION
AND AMORTIZATION		REVENUE REDUCTION ASSOCIATED WITH CUSTOMER INDUCEMENTS
AND DATA CENTER ABOVE-MARKET AND
BELOW-MARKET LEASES
2026$177,956 $5,614 
2027153,087 3,510 
2028140,905 1,990 
2029123,727 1,716 
2030113,809 1,100 
Thereafter568,365 1,873 
N. DEFERRED FINANCING COSTS
Deferred financing costs are amortized over the life of the related debt. If debt is retired early, the related unamortized deferred financing costs are written off in the period the debt is retired and included as a component of Other expense (income), net. See Note 6.
O. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Derivative instruments are measured at fair value and are recorded as either assets or liabilities in our Consolidated Balance Sheets. Periodically, we acquire derivative instruments that are intended to hedge either cash flows or values that are subject to foreign exchange or other market price risk and not for trading purposes. We have formally documented our hedging relationships, including identification of the hedging instruments and the hedged items, as well as our risk management objectives and strategies for undertaking each hedge transaction concurrently with the execution of the derivative instrument. Given the recurring nature of our revenues and the long-term nature of our asset base, we have the ability and the preference to use long-term, fixed interest rate debt to finance our business, thereby preserving our long-term returns on invested capital. We may use interest rate swaps as a tool to maintain our targeted level of fixed rate debt. In addition, we may enter into cross-currency swaps to hedge the variability of exchange rates between the United States dollar and the currencies of our foreign subsidiaries, as well as interest rates. We may also use borrowings in foreign currencies, either obtained in the United States or by our foreign subsidiaries, to hedge foreign currency risk associated with our international investments. Gains and losses realized as a result of the maturing or termination of our interest rate swaps and cross-currency swaps are reflected as operating cash flows within our Consolidated Statements of Cash Flows. As of December 31, 2025 and 2024, none of our derivative instruments contained credit-risk related contingent features. See Note 5.
P. FAIR VALUE MEASUREMENTS
Entities are permitted under GAAP to elect to measure certain financial instruments and certain other items at either fair value or cost. We have elected the cost measurement option in all circumstances where we had an option.
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 and measured on a recurring basis as of December 31, 2025 and 2024, respectively, are as follows:
  
FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2025 USING
DESCRIPTION
TOTAL CARRYING
VALUE AT
DECEMBER 31, 2025
QUOTED PRICES IN
ACTIVE MARKETS
(LEVEL 1) 		 SIGNIFICANT OTHER
OBSERVABLE INPUTS
(LEVEL 2) 		 
SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3)(6)
Money Market Funds(1)
$7,149 $— $7,149 $— 
Time Deposits(1)
3,430 — 3,430 — 
Trading Securities8,220 6,400 
(2)
1,820 
(3)
— 
Derivative Liabilities(4)
71,869 — 71,869 — 
Deferred Purchase Obligations(5)
134,142 — — 134,142 
  
FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2024 USING
DESCRIPTION
TOTAL CARRYING
VALUE AT
DECEMBER 31, 2024
QUOTED PRICES IN
ACTIVE MARKETS
(LEVEL 1) 		 SIGNIFICANT OTHER
OBSERVABLE INPUTS
(LEVEL 2) 		 
SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3)(6)
Money Market Funds(1)
$2,488 $— $2,488 $— 
Time Deposits(1)
9,612 — 9,612 — 
Trading Securities8,144 6,390 
(2)
1,754 
(3)
— 
Derivative Assets(4)
28,092 — 28,092 — 
Derivative Liabilities(4)
5,326 — 5,326 — 
Deferred Purchase Obligations(5)
147,055 — — 147,055 
(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 other than quoted market prices that are observable.
(4)Derivative assets and liabilities include (i) interest rate swap agreements, and (ii) cross-currency swap agreements to hedge the variability of exchange rate impacts between the United States dollar and certain of our foreign functional currencies, including the Euro and the Canadian dollar. Our derivative financial instruments are measured using industry standard valuation models using market-based observable inputs, including interest rate curves, forward and spot prices for currencies and implied volatilities. See Note 5 for additional information on our derivative financial instruments.
(5)The balance as of December 31, 2025 primarily relates to the fair value of the deferred purchase obligation associated with the Regency Transaction (as defined in Note 3). The balance as of December 31, 2024 primarily relates to the fair values of the deferred purchase obligations associated with the Regency Transaction and the ITRenew Transaction (as defined below).
(6)The following is a rollforward of the Level 3 liabilities presented above for December 31, 2023 through December 31, 2025:
Balance as of December 31, 2023
$208,265 
Additions63,700 
Payments(158,775)
Other changes33,865 
Balance as of December 31, 2024
$147,055 
Additions16,626 
Payments(49,678)
Other changes20,139 
Balance as of December 31, 2025
$134,142 
The level 3 valuations of the deferred purchase obligations were determined utilizing either a Monte-Carlo simulation model or a discounted cash flow model and take into account our forecasted projections as they relate to the underlying performance of the respective businesses. On January 25, 2022, in order to expand our ALM operations, we acquired an approximately 80% interest in ITRenew (the "ITRenew Transaction"). 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 discounted cash flow 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 for the years ended December 31, 2025 and 2024 other than (i) the reporting units as presented in our goodwill impairment analysis (as disclosed in Note 2.l.); (ii) assets acquired and liabilities assumed through our acquisitions; (iii) the redemption value of recently acquired noncontrolling interests; and (iv) contributions to our equity method investments, all of which are based on Level 3 inputs.
The fair value of our long-term debt, which was determined based on Level 2 and Level 3 inputs, is disclosed in Note 6. Long-term debt is measured at cost in our Consolidated Balance Sheets as of December 31, 2025 and 2024.
Q. NONCONTROLLING INTERESTS
Unaffiliated third parties own noncontrolling interests in certain of our consolidated subsidiaries. The classification of these ownership interests are evaluated under ASC 810, Consolidation and ASC 480, Distinguishing Liabilities from Equity. Ownership interests are classified as equity unless the underlying agreements contain provisions requiring classification as a liability or temporary equity. Noncontrolling interests are presented as a separate component of Iron Mountain Incorporated Stockholders’ (Deficit) Equity in the accompanying Consolidated Balance Sheets and Consolidated Statements of (Deficit) Equity.
Certain agreements with our noncontrolling interest shareholders contain put options which allow the noncontrolling interest shareholders to require us to purchase their respective interests in such subsidiaries at certain times and at purchase prices as stipulated in the underlying agreements (generally at fair value). These ownership interests, otherwise known as redeemable noncontrolling interests, are classified as temporary equity in our Consolidated Balance Sheets and Consolidated Statements of (Deficit) Equity. Redeemable noncontrolling interests are reported as temporary equity at the greater of their redemption value or the noncontrolling interest holders’ proportionate share of the underlying subsidiary’s net carrying value. Increases or decreases in the redemption value are offset against Additional Paid-in Capital. Changes in ownership interests that do not result in a loss of control are accounted for as equity transactions. If control is lost, the subsidiary’s assets, liabilities and noncontrolling interests are derecognized, and any resulting gain or loss is recorded in earnings.
The amount of consolidated net income attributable to noncontrolling interests, including redeemable noncontrolling interests, are presented in the accompanying Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income (Loss).
When ownership interests are determined to be mandatorily redeemable, they are classified as liabilities and included as a component of Accrued expenses and other current liabilities or Other long-term liabilities on our Consolidated Balance Sheets, depending on the timing of the obligation.
R. ACCUMULATED OTHER COMPREHENSIVE ITEMS, NET
The changes in Accumulated other comprehensive items, net for the years ended December 31, 2025, 2024 and 2023 are as follows:
 
FOREIGN CURRENCY
 TRANSLATION AND
OTHER ADJUSTMENTS
CHANGE IN FAIR
VALUE OF DERIVATIVE
INSTRUMENTS
TOTAL
Balance as of December 31, 2022$(454,509)$12,506 $(442,003)
Other comprehensive income (loss):
Foreign currency translation and other adjustments80,881 — 80,881 
Change in fair value of derivative instruments— (2,454)(2,454)
Reclassifications from Accumulated Other Comprehensive Items, net— (7,580)(7,580)
Total other comprehensive income (loss)80,881 (10,034)70,847 
Balance as of December 31, 2023(373,628)2,472 (371,156)
Other comprehensive (loss) income:
Foreign currency translation and other adjustments(194,501)— (194,501)
Change in fair value of derivative instruments— (1,767)(1,767)
Reclassifications from Accumulated Other Comprehensive Items, net— (2,528)(2,528)
Total other comprehensive (loss) income(194,501)(4,295)(198,796)
Balance as of December 31, 2024(568,129)(1,823)(569,952)
Other comprehensive income (loss):
Foreign currency translation and other adjustments210,080 — 210,080 
Change in fair value of derivative instruments— (7,518)(7,518)
Reclassifications from Accumulated Other Comprehensive Items, net— (1,618)(1,618)
Total other comprehensive income (loss)210,080 (9,136)200,944 
Balance as of December 31, 2025$(358,049)$(10,959)$(369,008)
S. REVENUES
Our revenues consist of storage rental revenues and 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 and of 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, customer termination and permanent withdrawal fees, project revenues and courier operations consisting primarily of the pickup and delivery of records upon customer request; (2) secure shredding of sensitive documents and the subsequent sale of shredded paper for recycling, the price of which can fluctuate from period to period; (3) the decommissioning, data erasure, processing and disposition, and recycling or sale of information technology ("IT") hardware and component assets; and (4) digital solutions, including the scanning, imaging and document conversion services of active and inactive records, consulting services and the sale of software as a service, including our Digital Experience Platform.
The majority of our revenue is recognized in accordance with Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"). Storage revenue for our Global Data Center Business is recognized in accordance with ASC Topic 842, Leases. For revenue recognized in accordance with ASC 606, customers are generally billed monthly based on contractually agreed-upon terms, and storage rental and service revenues are recognized in the month the respective storage rental or service is provided, in line with the transfer of control to the customer. When storage rental fees or services are billed in advance, amounts related to future storage rental or prepaid service contracts are accounted for as deferred revenue and recognized upon the transfer of control to the customer. Customer contracts generally include promises to provide monthly recurring storage and related services that are essentially the same over time and have the same pattern of transfer of control to the customer; therefore, most performance obligations represent a promise to deliver a series of distinct services over time (as determined for purposes of ASC 606, a "series"). For those contracts that qualify as a series, we apply the "right to invoice" practical expedient as we have a right to consideration from the customer in an amount that corresponds directly with the value of the underlying performance obligation transferred to the customer to date. Additionally, each purchasing decision is fully in the control of the customer; therefore, consideration beyond the current reporting period is variable and allocated to the specific period to which the consideration relates, which is consistent with the practical expedient. Revenue from product sales, the majority of which is IT asset sales, is recognized at the point in time at which control transfers to the customer, which is generally upon shipment.
Our Global Data Center Business features storage rental provided to the customer at contractually specified rates over a fixed contractual period. The revenue related to the storage component of our Global Data Center Business is recognized on a straight-line basis over the contract term in accordance with ASC 842. The revenue related to the service component of our Global Data Center Business that is not part of the combined single lease component is recognized in the period the related services are provided.
From time to time, we make payments to entities that are also customers under a revenue contract. These payments are primarily comprised of (i) Customer Inducements and (ii) payments to customers of our ALM business under revenue sharing arrangements for the remarketing of the customer's disposed IT assets. Customer Inducements do not represent payments for a distinct service, and, as such, are treated as a reduction of the transaction price and are amortized over the term of the contracts, which range from one to 10 years. Payments for disposed IT assets are for a distinct good and, as such, are expensed as cost of sales in the period when the asset is sold and the corresponding revenue is recognized.
Certain costs to fulfill or obtain customer contracts and certain initial direct costs of obtaining leases, including the costs associated with the initial movement of customer records into physical storage and certain commission expenses, are collectively referred to as "Contract Costs". The following describes our significant Contract Costs:
INTAKE COSTS (AND ASSOCIATED DEFERRED REVENUE)
The costs of the initial intake of customer records into physical storage ("Intake Costs"), are deferred and amortized as a component of depreciation and amortization in our Consolidated Statements of Operations generally over three years, consistent with the transfer of the performance obligation to the customer to which the asset relates. In instances where such Intake Costs are billed to the customer, the associated revenue is deferred and recognized over the same three-year period.
COMMISSIONS
Certain commission payments that are directly associated with obtaining long-term contracts are capitalized and amortized as a component of depreciation and amortization in our Consolidated Statements of Operations generally over three years, consistent with the transfer of the performance obligation to the customer to which the asset relates or the lease term. We also apply the practical expedient to expense certain commission payments as incurred when the amortization period for those commission payments is one year or less.
Contract Costs, which are included as a component of Other within Other Assets, Net as of December 31, 2025 and 2024 are as follows:
DECEMBER 31, 2025DECEMBER 31, 2024
DESCRIPTIONGROSS
CARRYING
AMOUNT		ACCUMULATED
AMORTIZATION		NET
CARRYING
AMOUNT		GROSS
CARRYING
AMOUNT		ACCUMULATED
AMORTIZATION		NET
CARRYING AMOUNT
Intake Costs and other fulfillment costs asset
$111,923 $(60,999)$50,924 $89,057 $(43,783)$45,274 
Commissions asset243,966 (110,365)133,601 200,149 (78,955)121,194 
Amortization expense associated with the Intake Costs and other fulfillment costs asset and Commissions assets for the years ended December 31, 2025, 2024 and 2023 are as follows:
YEAR ENDED DECEMBER 31,
DESCRIPTION202520242023
Intake Costs and other fulfillment costs asset$33,474 $22,114 $18,904 
Commissions asset72,460 54,841 43,413 
Estimated amortization expense for Contract Costs is as follows:
YEAR
ESTIMATED AMORTIZATION
2026$104,963 
202745,485 
202815,375 
20293,185 
20302,666 
Thereafter12,851 
Deferred revenue liabilities, which also includes deferred revenue accounted for under ASC 842 (as described below), are reflected as follows in our Consolidated Balance Sheets:
DECEMBER 31,
DESCRIPTIONLOCATION IN BALANCE SHEET2025
2024(1)
Deferred revenue - Current(2)
Deferred revenue$402,091 $326,882 
Deferred revenue - Long-term(3)
Other Long-term Liabilities165,804 110,601 
(1)The beginning balance of current and long-term deferred revenue for the year ended December 31, 2024 was $325,665 and $100,770, respectively.
(2)The current deferred revenue accounted for under ASC 842 is approximately $41,600 and $25,500 as of December 31, 2025 and 2024, respectively. Approximately half of this revenue is expected to be recognized over the next month, with the remainder expected to be recognized over the next two to 12 months.
(3)The long-term deferred revenue accounted for under ASC 842 is approximately $141,100 and $95,000 as of December 31, 2025 and 2024, respectively.
In addition to our deferred revenue, we have remaining performance obligations related to certain customer contracts that have annual or monthly fixed fees with noncancelable terms. As of December 31, 2025, approximately $269,000 of remaining performance obligations are expected to be recognized as revenue over periods generally ranging from one to five years, with approximately 25% expected to be recognized within the next 12 months. As permitted under ASC 606, we do not disclose the value of remaining performance obligations for contracts as we have applied the "right to invoice" practical expedient, as described above.
DATA CENTER LESSOR CONSIDERATIONS
Our Global Data Center Business features storage rental provided to customers at contractually specified rates over a fixed contractual period. Our data center revenue contracts are accounted for in accordance with ASC 842. ASC 842 provides a practical expedient which allows lessors to account for nonlease components 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, if accounted for separately, would be classified as an operating lease. The single combined component is accounted for under ASC 842 if the lease component is the predominant component. We have elected to take this practical expedient. The single combined component is presented as part of our storage rental revenue.
Storage rental revenue associated with our Global Data Center Business for the years ended December 31, 2025, 2024 and 2023 are as follows:
YEAR ENDED DECEMBER 31,
202520242023
Storage rental revenue(1)
$797,017 $606,294 $474,066 
(1)Revenue associated with variable lease payments, primarily related to power and connectivity, included within storage rental revenue was approximately $172,000, $131,000 and $111,000 for the years ended December 31, 2025, 2024 and 2023, respectively.
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 and thereafter are as follows:
YEAR
FUTURE MINIMUM LEASE PAYMENTS(1)
2026$628,775 
2027627,803 
2028585,750 
2029570,311 
2030541,514 
Thereafter3,398,163 
(1)Future minimum lease payments we expect to receive exclude payments for contingent and variable costs such as taxes, insurance, common area maintenance and power and connectivity, which are included in our total storage revenue. These amounts also exclude approximately $3,317,000 in total expected future minimum lease payments for non-cancellable leases that have not yet commenced, which we expect to receive over a weighted average period of 16 years.
T. STOCK-BASED COMPENSATION
We record stock-based compensation expense, utilizing the straight-line method, for the cost of stock options, restricted stock units ("RSUs"), and performance units ("PUs") (together, "Employee Stock-Based Awards"). Forfeitures are recorded in the period during which they occur. Our non-employee directors are considered employees for purposes of our Employee Stock-Based Awards and the associated reporting of these awards.
Our equity compensation plans generally provide that, upon a vesting change in control (as defined in each plan), any unvested options and other awards granted thereunder shall vest immediately if an employee is terminated as a result of the change in control or terminates their own employment for good reason (as defined in each plan). Other than in specified circumstances, no equity-based award will vest before the first anniversary of the date of grant.
On January 20, 2015, our stockholders approved the adoption of the Iron Mountain Incorporated 2014 Stock and Cash Incentive Plan, as amended (the "2014 Plan"). On May 29, 2025, our stockholders approved an amendment to the 2014 Plan, which (i) increases the number of shares of common stock authorized for issuance under the 2014 Plan by 4,600,000, from 20,750,000 to 25,350,000, and (ii) extends the termination date of the 2014 Plan from May 12, 2031 to May 29, 2035.
A total of 25,350,000 shares of common stock have been reserved for grants of options and other rights under our various stock incentive plans, including the 2014 Plan. The number of shares available for grant under our various stock incentive plans at December 31, 2025 was 7,617,011.
RETIREMENT ELIGIBLE CRITERIA
Our Employee Stock-Based Awards include the following retirement provision:
•Upon an employee’s retirement on or after attaining age 55 with at least five years of service, if the sum of (i) the award recipient’s age at retirement and (ii) the award recipient’s years of service with us totals at least 65, the award recipient is entitled to continued vesting of any outstanding Employee Stock-Based Awards, provided that their retirement occurs on or after a minimum of six months from the grant date (the "Retirement Criteria").
•Accordingly, (i) grants of Employee Stock-Based Awards to an employee who has met the Retirement Criteria on or before the date of grant, or will meet the Retirement Criteria before the six month anniversary in the year of the grant, will be expensed over six months from the date of grant and (ii) grants of Employee Stock-Based Awards to employees who will meet the 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 Retirement Criteria.
•Stock options and RSUs granted to award recipients who meet the Retirement Criteria will be delivered to the award recipient based upon the original vesting schedule. If an award recipient retires and has met the Retirement Criteria, stock options will remain exercisable until the original expiration date of the stock options. PUs granted to award recipients who meet the Retirement Criteria will 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 included in Selling, general and administrative expenses in the accompanying Consolidated Statements of Operations for the years ended December 31, 2025, 2024 and 2023 is as follows:
YEAR ENDED DECEMBER 31,
202520242023
Stock-based compensation expense$140,280 $118,138 $73,799 
Stock-based compensation expense, after tax132,537 109,252 68,309 
As of December 31, 2025, unrecognized compensation cost related to the unvested portion of our Employee Stock-Based Awards, inclusive of our estimated achievement of the performance metrics, was $86,285 and is expected to be recognized over a weighted-average period of 1.9 years.
We issue shares of our common stock for the exercises of stock options, and the vesting of RSUs, PUs and shares of our common stock under our ESPP from unissued reserved shares.
STOCK OPTIONS
Options are generally granted with exercise prices equal to the market price of the stock on the date of grant; however, in certain instances, options are granted at exercise prices greater than the market price of the stock on the date of grant. We issue options that become exercisable ratably over a period of three years from the date of grant and have a contractual life of 10 years from the date of grant, unless the holder’s employment is terminated sooner. Dividends and dividend equivalents are not paid with respect to stock options.
The fair value of stock options granted in 2025, 2024 and 2023 was $25.18, $22.58 and $10.98 per share, respectively. These values were estimated on the date of grant using the Black-Scholes option pricing model. The assumptions used for stock option grants in the years ended December 31, 2025, 2024 and 2023 are as follows:
YEAR ENDED DECEMBER 31,
STOCK OPTION GRANT ASSUMPTIONS202520242023
Expected volatility(1)
28.6 %28.6 %29.1 %
Risk-free interest rate(2)
4.24 %4.25 %3.92 %
Expected dividend yield(3)
3.4 %3.2 %4.7 %
Expected life(4)
10.0 years10.0 years10.0 years
(1)Expected volatility is calculated utilizing daily historical volatility over a period that equates to the expected life of the option.
(2)Risk-free interest rate is based on the United States Treasury interest rates whose term is consistent with the expected life (estimated period of time outstanding) of the stock options.
(3)Expected dividend yield is considered in the option pricing model and represents our annualized expected per share dividends over the trade price of our common stock at the date of grant.
(4)Expected life of the stock options granted is estimated using the historical exercise behavior of employees.
A summary of stock option activity for the year ended December 31, 2025 is as follows:
 OPTIONSWEIGHTED
AVERAGE
EXERCISE PRICE		WEIGHTED AVERAGE
REMAINING
CONTRACTUAL
TERM (YEARS)		AGGREGATE
INTRINSIC
VALUE
Outstanding at December 31, 20243,709,919 $37.85 
Granted83,389 93.17 
Exercised(857,295)36.44 
Outstanding at December 31, 20252,936,013 $39.84 3.87$127,456 
Options exercisable at December 31, 20252,744,876 $37.13 3.56$125,759 
Options expected to vest191,137 $78.53 8.33$1,697 
RESTRICTED STOCK UNITS
Our RSUs generally have a vesting period of three years from the date of grant. However, RSUs granted to our non-employee directors vest immediately upon grant. All RSUs accrue dividend equivalents associated with the underlying stock as we declare dividends. Dividends will generally be paid to holders of RSUs in cash upon the vesting date of the associated RSU and will be forfeited if the RSU does not vest. The fair value of RSUs is the excess of the market price of our common stock at the date of grant over the holder's purchase price (which is typically zero).
The fair value of RSUs vested during the years ended December 31, 2025, 2024 and 2023 are as follows:
 YEAR ENDED DECEMBER 31,
202520242023
Fair value of RSUs vested$42,277 $29,852 $32,664 
A summary of RSU activity for the year ended December 31, 2025 is as follows:
 RSUsWEIGHTED-AVERAGE
GRANT-DATE FAIR VALUE
Non-vested at December 31, 20241,194,375 $70.06 
Granted596,134 91.27 
Vested(632,233)66.87 
Forfeited(121,835)85.98 
Non-vested at December 31, 20251,036,441 $82.33 
PERFORMANCE UNITS
The PUs we issue vest based on our performance against predefined operational performance and relative total shareholder return based targets over a three-year performance period. The vesting is subject to a minimum level of return on invested capital in the third year of the performance period, and the number of PUs earned is based on certain metrics determined at the outset of the performance period.
The number of PUs earned is based on:
•either (i) the revenue performance for each year averaged at the end of the three-year performance period, or (ii) if (a) absolute Company total shareholder return is positive at the end of the three-year performance period and (b) a predetermined revenue hurdle is achieved in the third year of the performance period, then the revenue performance achieved in the third year of the performance period; and
•the total return at the end of the three-year performance period on our common stock relative to the companies comprising the Morgan Stanley Capital International ("MSCI") United States REIT Index.
The number of PUs earned will range from 0% to approximately 350% of the initial award.
All of our PUs will be settled in shares of our common stock and are subject to cliff vesting three years from the date of the original PU grant. As detailed above, PUs granted are subject to the Retirement Criteria. PUs are generally expensed over the three-year performance period, unless they are granted to a recipient who meets the Retirement Criteria, for which expense will be recognized as described above. PUs granted to recipients who meet the 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.
All PUs accrue dividend equivalents associated with the underlying stock as we declare dividends. Dividends will generally be paid to holders of PUs in cash upon the settlement date of the associated PU and will be forfeited if the PU does not vest.
During the years ended December 31, 2025, 2024 and 2023, we issued 512,905, 462,501 and 641,412 PUs, respectively. We forecast the likelihood of achieving the predefined targets for our PUs in order to calculate the expected PUs to be earned. We record a compensation charge based on either the forecasted PUs to be earned (during the performance period) or the actual PUs earned (at the three-year anniversary of the grant date) over the vesting period for each of the awards. The fair value of PUs based on our performance against predefined targets is the excess of the market price of our common stock at the date of grant over the purchase price (which is typically zero). For PUs earned based on a market condition, we utilize a Monte Carlo simulation to estimate the fair value of these awards at the date of grant.
The fair value of earned PUs that vested during the years ended December 31, 2025, 2024 and 2023 is as follows:
 YEAR ENDED DECEMBER 31,
202520242023
Fair value of earned PUs that vested$52,091 $24,617 $34,896 
A summary of PU activity for the year ended December 31, 2025 is as follows:
 PUsWEIGHTED-AVERAGE
GRANT-DATE
FAIR VALUE
Non-vested at December 31, 2024562,028 $83.33 
Granted512,905 83.69 
Prior year grant adjustments for performance(1)
1,845,118 37.47 
Vested(1,390,205)37.47 
Forfeited(34,473)84.56 
Non-vested at December 31, 20251,495,373 $69.47 
(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.
EMPLOYEE STOCK PURCHASE PLAN
We offer an Employee Stock Purchase Plan ("ESPP") in which participation is available to substantially all United States and Canadian employees who meet certain service eligibility requirements. Shares of our common stock may be purchased by eligible employees at six-month intervals at 95% of the fair market price at the end of each six-month period, without a look-back feature, up to a maximum of 15% of their gross compensation during the offering period. We do not recognize compensation expense for the ESPP shares purchased. The number of shares of Common Stock authorized for issuance under our ESPP is 2,000,000. For the years ended December 31, 2025, 2024 and 2023, there were 80,068, 82,244 and 120,647 shares, respectively, purchased under the ESPP. As of December 31, 2025, we have 708,545 shares available under the ESPP.
U. 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 years ended December 31, 2025, 2024 and 2023 were $19,545, $35,842 and $25,875, respectively.
V. OTHER EXPENSE (INCOME), NET
Other expense (income), net for the years ended December 31, 2025, 2024 and 2023 consists of the following:
 YEAR ENDED DECEMBER 31,
 202520242023
Foreign currency transaction losses (gains), net(1)
$105,644 $(39,064)$36,799 
Debt extinguishment expense— 5,678 — 
Other, net(2)(3)(4)
17,655 76,808 71,841 
Other expense (income), net
$123,299 $43,422 $108,640 
(1)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, includes gains or losses primarily related to British pound sterling and Euro denominated intercompany obligations of our foreign subsidiaries to us and between our foreign subsidiaries, which are not considered permanently invested.
(2)Other, net for the year ended December 31, 2025 primarily consists of (i) a loss of approximately $13,800 due to the change in value of our deferred purchase obligations and other deferred payments and (ii) losses on our equity method investment.
(3)Other, net for the year ended December 31, 2024 primarily consists of (i) a loss of approximately $41,000 due to the change in value of our deferred purchase obligations and other deferred payments, (ii) approximately $29,200 in charges associated with the agreement to purchase the remaining interest in a joint venture and (iii) losses on our equity method investments.
(4)Other, net for the year ended December 31, 2023 consists primarily of a loss of approximately $38,000 associated with the remeasurement to fair value of our previously held equity interest in the joint venture we had formed with Clutter Intermediate, Inc. (the "Clutter JV"), as well as losses on our equity method investments and the change in value of our deferred purchase obligations.
W. INCOME TAXES
Accounting for income taxes requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the tax and financial reporting bases of assets and liabilities and for loss and credit carryforwards. Valuation allowances are provided when recovery of deferred tax assets does not meet the more likely than not standard as defined in GAAP. We have elected to recognize interest and penalties associated with uncertain tax positions as a component of the Provision (Benefit) for Income Taxes in the accompanying Consolidated Statements of Operations.
X. 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 years ended December 31, 2025, 2024 and 2023 is as follows:
 YEAR ENDED DECEMBER 31,
 202520242023
Net Income (Loss)$152,254 $183,666 $187,263 
Less: Net Income (Loss) Attributable to Noncontrolling Interests7,663 3,510 3,029 
Net Income (Loss) Attributable to Iron Mountain Incorporated (utilized in numerator of Earnings Per Share calculation)$144,591 $180,156 $184,234 
Weighted-average shares—basic295,403,000 293,365,000 291,936,000 
Effect of dilutive potential stock options1,946,000 2,241,000 1,435,000 
Effect of dilutive potential RSUs and PUs467,000 628,000 594,000 
Weighted-average shares—diluted297,816,000 296,234,000 293,965,000 
Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated:   
Basic$0.49 $0.61 $0.63 
Diluted$0.49 $0.61 $0.63 
Antidilutive stock options, RSUs and PUs, excluded from the calculation113,130 225,847 81,817 
NEW ACCOUNTING PRONOUNCEMENTS
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures ("ASU 2023-09") to provide disaggregated income tax disclosures on the rate reconciliation and income taxes paid. Further, certain requirements related to uncertain tax positions and unrecognized deferred tax liabilities are eliminated. We adopted ASU 2023-09 on January 1, 2025 on a prospective basis, and there was no material impact on our consolidated financial statements.
OTHER AS YET ADOPTED ACCOUNTING PRONOUNCEMENTS
In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), Disaggregation of Income Statement Expenses ("ASU 2024-03"), which requires disclosure of additional information about specific expense categories in the notes to financial statements on an annual and interim basis. The amendments in this update should be applied on a prospective basis, with retrospective application permitted. The amendments in this update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within fiscal years beginning after December 15, 2027, with early adoption permitted. We do not expect ASU 2024-03 to have a material impact on our consolidated financial statements.
In September 2025, the FASB issued ASU No. 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”). The ASU primarily updates the accounting for internal-use software by replacing former stage-based rules with a principles-based framework. Costs associated with internal-use software will be capitalized only when management has authorized and committed funding and it is probable that the project will be completed and the software will be used to perform the function intended. The amendments in this update are effective for annual reporting periods beginning after December 15, 2027 and interim reporting periods therein, with early adoption permitted, and can be applied either prospectively, retrospectively or on a modified prospective basis. We are currently evaluating the impact of ASU 2025-06 on our consolidated financial statements, but we do not expect it to be material.
In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements ("ASU 2025-11"), which is intended to update the guidance in Topic 270 by improving navigability of the required interim disclosures, clarifying when that guidance is applicable and adding a principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The amendments in this update are effective for the interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted, and can be applied either prospectively or retrospectively to any or all prior periods presented in the financial statements. We do not expect ASU 2025-11 to have a material impact on our quarterly condensed consolidated financial statements.