Balance Sheet Components

Cash, Cash Equivalents and Short-Term and Long-Term Investments

Cash, cash equivalents and short-term and long-term investments consisted of the following as of December 31 (in thousands):



	2015		2014
Cash and cash equivalents:
Cash ⁽¹⁾	$	1,139,554	$	207,953
Cash equivalents:
Money market funds	1,089,284		402,964
Total cash and cash equivalents	2,228,838		610,917
Marketable securities:
U.S. government securities	—		336,440
U.S. government agency securities	—		192,955
Certificates of deposit	14,106		439
Publicly traded equity securities	3,353		—
Total marketable securities	17,459		529,834
Total cash, cash equivalents and short-term and long-term investments	$	2,246,297	$	1,140,751

_________________________

(1)Excludes restricted cash.

As of December 31, 2015 and 2014, cash and cash equivalents included investments which were readily convertible to cash and had original maturity dates of 90 days or less. The maturities of debt instruments classified as short-term investments were one year or less as of December 31, 2015 and 2014. The maturities of debt instruments classified as long-term investments were greater than one year and less than three years as of December 31, 2015 and 2014. Through the acquisition of Bit-isle, the Company acquired certain publicly-traded equity securities which were included in long-term investment in the consolidated balance sheet as of December 31, 2015.

The following table summarizes the cost and estimated fair value of marketable debt securities based on stated effective maturities as of December 31 (in thousands):



	2015				2014
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	12,875	$	12,875	$	529,567	$	529,395
Due after one year through three years	1,231		1,231		439		439
Total	$	14,106	$	14,106	$	530,006	$	529,834

As of December 31, 2015, the Company’s net unrealized gains (losses) on its available-for-sale securities were comprised of the following (in thousands):



	Amortized Cost		Gross unrealized gains		Gross unrealized losses			Fair Value
Certificates of deposit	$	14,106	$	—	$	—		$	14,106
Publicly traded equity securities	3,561		—		(208		)	3,353
Total	$	17,667	$	—	$	(208	)	$	17,459

None of the securities held at December 31, 2015 were other-than-temporarily impaired.

While certain marketable securities carry unrealized losses, the Company expects that it will receive both principal and interest according to the stated terms of each of the securities and that the increase or decline in market value is primarily due to changes in the interest rate environment from the time the securities were purchased as compared to interest rates at December 31, 2015.

As of December 31, 2014, the Company’s net unrealized gains (losses) on its available-for-sale securities were comprised of the following (in thousands):



	Amortized Cost		Gross unrealized gains		Gross unrealized losses			Fair Value
U.S. government securities	$	336,561	$	45	$	(166	)	$	336,440
U.S. government agency securities	193,006		30		(81		)	192,955
Certificates of deposit	439		—		—			439
Total	$	530,006	$	75	$	(247	)	$	529,834

None of the securities held at December 31, 2014 were other-than-temporarily impaired.

Accounts Receivable

Accounts receivable, net, consisted of the following as of December 31 (in thousands):



	2015			2014
Accounts receivable	$	302,316		$	272,036
Allowance for doubtful accounts	(10,352		)	(9,466		)
	$	291,964		$	262,570

Trade accounts receivable are recorded at the invoiced amount and generally do not bear interest.

The following table summarizes the activity of the Company’s allowance for doubtful accounts (in thousands):



Balance as of December 31, 2012	$	3,716
Provision for allowance for doubtful accounts	5,819
Net write-offs	(2,833		)
Impact of foreign currency exchange	(62		)
Balance as of December 31, 2013	6,640
Provision for allowance for doubtful accounts	7,093
Net write-offs	(3,825		)
Impact of foreign currency exchange	(442		)
Balance as of December 31, 2014	9,466
Provision for allowance for doubtful accounts	5,037
Net write-offs	(3,438		)
Impact of foreign currency exchange	(713		)
Balance as of December 31, 2015	$	10,352

Other Current Assets

Other current assets consisted of the following as of December 31 (in thousands):



	2015		2014
Prepaid expenses	$	48,322	$	29,501
Taxes receivable	33,979		17,071
Deferred tax assets, net	—		6,579
Other receivables	1,925		2,324
Derivative instruments	60,165		17,732
Other current assets	68,538		11,797
	$	212,929	$	85,004

Property, Plant and Equipment

Property, plant and equipment consisted of the following as of December 31 (in thousands):



	2015			2014
Core systems	$	3,820,772		$	3,252,569
Buildings	2,383,387			2,074,382
Leasehold improvements	1,204,900			1,053,451
Construction in progress	351,697			460,259
Personal Property	450,914			387,909
Land	183,946			160,035
	8,395,616			7,388,605
Less accumulated depreciation	(2,789,180		)	(2,390,335		)
	$	5,606,436		$	4,998,270

Core systems, buildings, leasehold improvements, personal property and construction in progress recorded under capital leases aggregated $725,337,000 and $585,288,000 as of December 31, 2015 and 2014, respectively. Amortization of the assets recorded under capital leases is included in depreciation expense and accumulated depreciation on such assets totaled $117,338,000 and $83,291,000 as of December 31, 2015 and 2014, respectively.

Goodwill and Other Intangibles

Goodwill and other intangible assets, net, consisted of the following as of December 31 (in thousands):



	2015			2014
Goodwill:
Americas	$	460,203		$	463,902
EMEA	374,070			404,093
Asia-Pacific	228,927			134,134
	$	1,063,200		$	1,002,129

Intangible assets:
Intangible assets - customer contracts	$	311,581		$	220,674
Intangible assets - favorable leases	22,783			24,300
Intangible assets - licenses	9,697			9,697
Intangible assets - others	13,491			8,132
	357,552			262,803
Accumulated amortization - customer contracts	(117,167		)	(102,074		)
Accumulated amortization - favorable leases	(8,909		)	(7,656		)
Accumulated amortization - licenses	(1,942		)	(1,294		)
Accumulated amortization - others	(4,969		)	(4,252		)
	(132,987		)	(115,276		)
	$	224,565		$	147,527

Changes in the carrying amount of goodwill by geographic regions are as follows (in thousands):



	Americas			EMEA			Asia-Pacific			Total
Balance as of December 31, 2013	$	471,845		$	435,041		$	135,267		$	1,042,153
Impact of foreign currency exchange	(7,943		)	(30,948		)	(1,133		)	(40,024		)
Balance as of December 31, 2014	463,902			404,093			134,134			1,002,129
Purchase accounting adjustments	17,192			—			95,437			112,629
Asset held for sale adjustments	—			(5,000		)	—			(5,000		)
Impact of foreign currency exchange	(20,891		)	(25,023		)	(644		)	(46,558		)
Balance as of December 31, 2015	$	460,203		$	374,070		$	228,927		$	1,063,200

Changes in the net book value of intangible assets by geographic regions are as follows (in thousands):



	Americas			EMEA			Asia-Pacific			Total
Balance as of December 31, 2012	$	89,467		$	84,186		$	27,909		$	201,562
Frankfurt Kleyer 90 Carrier Hotel acquisition (see Note 2)	—			10,010			—			10,010
New York IBX Center purchase	1,100			—			—			1,100
Adjustments	—			(2,070		)	—			(2,070		)
Amortization of intangibles	(12,604		)	(11,613		)	(2,810		)	(27,027		)
Impact of foreign currency exchange	(1,739		)	2,196			150			607
Balance as of December 31, 2013	76,224			82,709			25,249			184,182
Amortization of intangibles	(12,257		)	(12,795		)	(2,704		)	(27,756		)
Impact of foreign currency exchange	(1,013		)	(7,729		)	(157		)	(8,899		)
Balance as of December 31, 2014	62,954			62,185			22,388			147,527
Nimbo acquisition	1,089			—			—			1,089
Bit-Isle acquisition	—			—			111,374			111,374
Asset held for sale adjustments	—			(784		)	—			(784		)
Write-off of intangible asset	—			(357		)	—			(357		)
Amortization of intangibles	(11,432		)	(11,675		)	(4,339		)	(27,446		)
Impact of foreign currency exchange	(1,968		)	(5,014		)	144			(6,838		)
Balance as of December 31, 2015	$	50,643		$	44,355		$	129,567		$	224,565

The Company’s goodwill and intangible assets in EMEA, denominated in the United Arab Emirates dirham, British pounds and Euros, goodwill and intangible assets in Asia-Pacific, denominated in Singapore dollars, Hong Kong dollars, Japanese yen and Chinese yuan and certain goodwill and intangibles in Americas, denominated in Canadian dollars and Brazilian reals, are subject to foreign currency fluctuations. The Company’s foreign currency translation gains and losses, including goodwill and intangibles, are a component of other comprehensive income and loss.

Estimated future amortization expense related to these intangibles is as follows (in thousands):



Year ending:
2016	$	35,298
2017	33,644
2018	29,690
2019	24,978
2020	19,217
Thereafter	81,738
Total	$	224,565

Other Assets

Other assets consisted of the following as of December 31 (in thousands):



	2015		2014
Deferred tax assets, net	$	61,152	$	45,134
Prepaid expenses, non-current	54,372		37,006
Debt issuance costs, net	19,709		9,022
Deposits	33,132		26,068
Derivative instruments	8,735		5,007
Other assets, non-current	11,358		6,373
	$	188,458	$	128,610

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following as of December 31 (in thousands):



	2015		2014
Accounts payable	$	49,892	$	30,221
Accrued compensation and benefits	131,204		115,184
Accrued interest	67,077		29,116
Accrued taxes⁽¹⁾	37,004		41,295
Accrued utilities and security	31,789		31,531
Accrued professional fees	18,380		8,148
Accrued repairs and maintenance	3,618		4,086
Accrued other	61,984		26,215
	$	400,948	$	285,796

__________________________

(1)Includes income taxes payable of $14,527,000 and $21,941,000, respectively, as of December 31, 2015 and 2014.

Other Current Liabilities

Other current liabilities consisted of the following as of December 31 (in thousands):



	2015		2014
Deferred tax liabilities, net	$	—	$	83,264
Deferred installation revenue	56,055		48,707
Customer deposits	23,676		13,492
Derivative instruments	79,256		810
Deferred recurring revenue	12,515		6,879
Deferred rent	3,572		2,675
Dividends payable	13,674		4,559
Asset retirement obligations	—		945
Other current liabilities	3,538		1,333
	$	192,286	$	162,664

Other Liabilities

Other liabilities consisted of the following as of December 31 (in thousands):



	2015		2014
Asset retirement obligations, non-current	$	78,482	$	63,913
Deferred tax liabilities, net	100,624		69,212
Deferred installation revenue, non-current	86,660		76,744
Deferred rent, non-current	68,787		52,968
Accrued taxes, non-current	26,763		24,726
Dividends payable, non-current	13,394		4,972
Customer deposits, non-current	4,701		4,618
Deferred recurring revenue, non-current	3,645		445
Derivative instruments	669		—
Other liabilities	6,688		7,366
	$	390,413	$	304,964

The following table summarizes the activity of the Company’s asset retirement obligation liability (in thousands):



Asset retirement obligations as of December 31, 2012	$	63,150
Additions	8,713
Adjustments ⁽¹⁾	(14,874		)
Accretion expense	2,932
Impact of foreign currency exchange	(373		)
Asset retirement obligations as of December 31, 2013	59,548
Additions	5,774
Adjustments ⁽¹⁾	(871		)
Accretion expense	2,438
Impact of foreign currency exchange	(2,031		)
Asset retirement obligations as of December 31, 2014	64,858
Additions	17,337
Adjustments ⁽¹⁾	(4,676		)
Accretion expense	3,349
Impact of foreign currency exchange	(2,386		)
Asset retirement obligations as of December 31, 2015	$	78,482

__________________________

(1)Reversal of asset retirement obligations associated with leases that were amended.