Acquisitions (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of Final Purchase Price Allocation

The final purchase price allocation is as follows (in thousands):



	Certain Verizon Data Center Assets
Cash and cash equivalents	$	1,073
Accounts receivable	2,019
Other current assets	7,319
Property, plant, and equipment	840,335
Intangible assets ⁽¹⁾	1,693,900
Goodwill	1,095,262
Total assets acquired	3,639,908
Accounts payable and accrued liabilities	(1,725		)
Other current liabilities	(2,020		)
Capital lease and other financing obligations	(17,659		)
Deferred tax liabilities	(18,129		)
Other liabilities	(5,689		)
Net assets acquired	$	3,594,686


(1)	The nature of the intangible assets acquired is customer relationships with an estimated useful life of 15 years. Included in this amount is a customer relationship intangible asset for Verizon totaling $245.3 million. Pursuant to the acquisition agreement, the Company formalized agreements to provide pre-existing space and services to Verizon at the acquired data centers.

A summary of the allocation of total purchase consideration is presented as follows (in thousands):



	Metronode			Infomart Dallas
Cash and cash equivalents	$	3,206		$	17,432
Accounts receivable	8,318			637
Other current assets	9,894			395
Property, plant, and equipment	307,151			362,023
Intangible assets	123,388			61,233
Goodwill	368,550			203,617
Deferred tax assets	4,112			—
Other assets ⁽¹⁾	54,338			—
Total assets acquired	878,957			645,337
Accounts payable and accrued liabilities	(17,104		)	(5,056		)
Other current liabilities	(2,038		)	(2,141		)
Other liabilities ⁽¹⁾	(55,581		)	(4,723		)
Net assets acquired	$	804,234		$	633,417


(1)	In connection with the Metronode Acquisition, the Company recorded indemnification assets of $54.3 million, which represented the seller's obligation under the purchase agreement to reimburse pre-acquisition tax liabilities settled after the acquisition.

A summary of the allocation of total purchase consideration is presented as follows (in thousands):



	Itconic			Zenium data center
Cash and cash equivalents	$	15,659		$	692
Accounts receivable	16,429			198
Other current assets	1,885			6,430
Property, plant, and equipment	65,356			58,931
Intangible assets	101,755			7,900
Goodwill	126,855			21,834
Other assets	4,025			313
Total assets acquired	331,964			96,298
Accounts payable and accrued liabilities	(15,847		)	(1,012		)
Other current liabilities	(12,374		)	(451		)
Capital lease and other financing obligations	(30,666		)	—
Loans payable	(3,253		)	—
Deferred tax liabilities	(3,198		)	(2,227		)
Other liabilities	(7,515		)	(614		)
Net assets acquired	$	259,111		$	91,994

Schedule of Acquired Intangible Assets

The following table presents certain information on the acquired intangible assets (in thousands):



Intangible Assets	Fair Value		Estimated Useful Lives (Years)	Weighted-average Estimated Useful Lives (Years)
Customer relationships (Metronode)	$	123,388	20.0	20.0
Customer relationships (Infomart Dallas)	31,195		20.0	20.0
In-place leases (Infomart Dallas)	19,959		3.6 - 7.5	6.8
Trade names (Infomart Dallas)	9,614		20.0	20.0
Favorable leases (Infomart Dallas)	465		3.6 - 7.5	7.0

Pro Forma Consolidated Operations

The following table sets forth the unaudited pro forma combined results of operations for the three and six months ended June 30, 2017 (in thousands, except per share amounts):



	Three Months Ended June 30, 2017		Six months ended June 30, 2017
Revenues	$	1,101,848	$	2,157,653
Net income from operations	74,831		124,160
Basic EPS	0.96		1.60
Diluted EPS	0.95		1.58