Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of rollforward of stockholders' equity

The following tables provide a rollforward of stockholders' equity for the three and nine months ended September 30, 2019 and 2018 (in thousands):



															AOCI (Loss)			Retained Earnings			Equinix Stockholders' Equity			Non-controlling Interests			Total Stockholders' Equity
	Common Stock			Treasury Stock					Additional Paid-in Capital			Accumulated Dividends
	Shares	Amount		Shares		Amount			Additional Paid-in Capital			Accumulated Dividends
Balance as of December 31, 2018	81,119,117	$	81	(396,859	)	$	(145,161	)	$	10,751,313		$	(3,331,200	)	$	(945,702	)	$	889,948		$	7,219,279		$	—		$	7,219,279
Adjustment from adoption of new accounting standard update	—	—		—		—			—			—			—			(5,973		)	(5,973		)	—			(5,973		)
Net income (loss)	—	—		—		—			—			—			—			118,078			118,078			(331		)	117,747
Other comprehensive income	—	—		—		—			—			—			3,337			—			3,337			7			3,344
Issuance of common stock and release of treasury stock for employee equity awards	360,464	—		1,706		360			27,233			—			—			—			27,593			—			27,593
Issuance of common stock for equity offering	2,985,575	3		—		—			1,213,431			—			—			—			1,213,434			—			1,213,434
Dividend distribution on common stock, $2.46 per share	—	—		—		—			—			(198,933		)	—			—			(198,933		)	—			(198,933		)
Settlement of accrued dividends on vested equity awards	—	—		—		—			284			(387		)	—			—			(103		)	—			(103		)
Accrued dividends on unvested equity awards	—	—		—		—			—			(2,395		)	—			—			(2,395		)	—			(2,395		)
Stock-based compensation, net of estimated forfeitures	—	—		—		—			50,795			—			—			—			50,795			—			50,795
Balance as of March 31, 2019	84,465,156	84		(395,153	)	(144,801		)	12,043,056			(3,532,915		)	(942,365		)	1,002,053			8,425,112			(324		)	8,424,788
Net income	—	—		—		—			—			—			—			143,527			143,527			325			143,852
Other comprehensive loss	—	—		—		—			—			—			(16,078		)	—			(16,078		)	(14		)	(16,092		)
Issuance of common stock and release of treasury stock for employee equity awards	26,435	—		359		76			(76		)	—			—			—			—			—			—
Issuance of common stock under ATM Program	722,361	1		—		—			348,120			—			—			—			348,121			—			348,121
Dividend distribution on common stock, $2.46 per share	—	—		—		—			—			(207,949		)	—			—			(207,949		)	—			(207,949		)
Settlement of accrued dividends on vested equity awards	—	—		—		—			12			(33		)	—			—			(21		)	—			(21		)
Accrued dividends on unvested equity awards	—	—		—		—			—			(2,972		)	—			—			(2,972		)	—			(2,972		)



														AOCI (Loss)			Retained Earnings		Equinix Stockholders' Equity			Non-controlling Interests			Total Stockholders' Equity
	Common Stock			Treasury Stock					Additional Paid-in Capital		Accumulated Dividends
	Shares	Amount		Shares		Amount			Additional Paid-in Capital		Accumulated Dividends
Stock-based compensation, net of estimated forfeitures	—	—		—		—			59,502		—			—			—		59,502			—			59,502
Balance as of June 30, 2019	85,213,952	85		(394,794	)	(144,725		)	12,450,614		(3,743,869		)	(958,443		)	1,145,580		8,749,242			(13		)	8,749,229
Net income	—	—		—		—			—		—			—			120,850		120,850			(39		)	120,811
Other comprehensive loss	—	—		—		—			—		—			(81,793		)	—		(81,793		)	(28		)	(81,821		)
Issuance of common stock and release of treasury stock for employee equity awards	276,497	1		2,010		424			24,000		—			—			—		24,425			—			24,425
Issuance of common stock under ATM Program	181,194	—		—		—			99,421		—			—			—		99,421			—			99,421
Dividend distribution on common stock, $2.46 per share	—	—		—		—			—		(209,226		)	—			—		(209,226		)	—			(209,226		)
Settlement of accrued dividends on vested equity awards	—	—		—		—			12		(230		)	—			—		(218		)	—			(218		)
Accrued dividends on unvested equity awards	—	—		—		—			—		(2,993		)	—			—		(2,993		)	—			(2,993		)
Stock-based compensation, net of estimated forfeitures	—	—		—		—			61,403		—			—			—		61,403			—			61,403
Balance as of September 30, 2019	85,671,643	$	86	(392,784	)	$	(144,301	)	$	12,635,450	$	(3,956,318	)	$	(1,040,236	)	$	1,266,430	$	8,761,111		$	(80	)	$	8,761,031



									Additional Paid-in Capital			Accumulated Dividends			AOCI (Loss)			Retained Earnings		Equinix Stockholders' Equity
	Common Stock			Treasury Stock
	Shares	Amount		Shares		Amount
Balance as of December 31, 2017	79,440,404	$	79	(402,342	)	$	(146,320	)	$	10,121,323		$	(2,592,792	)	$	(785,189	)	$	252,689	$	6,849,790
Adjustment from adoption of new accounting standard update	—	—		—		—			—			—			(2,124		)	271,900		269,776
Net income	—	—		—		—			—			—			—			62,894		62,894
Other comprehensive income	—	—		—		—			—			—			69,144			—		69,144
Issuance of common stock and release of treasury stock for employee equity awards	416,512	1		2,957		625			25,221			—			—			—		25,847
Dividend distribution on common stock, $2.28 per share	—	—		—		—			—			(180,640		)	—			—		(180,640		)
Settlement of accrued dividends on vested equity awards	—	—		—		—			1,795			(530		)	—			—		1,265
Accrued dividends on unvested equity awards	—	—		—		—			—			(2,216		)	—			—		(2,216		)
Stock-based compensation, net of estimated forfeitures	—	—		—		—			44,691			—			—			—		44,691
Balance as of March 31, 2018	79,856,916	80		(399,385	)	(145,695		)	10,193,030			(2,776,178		)	(718,169		)	587,483		7,140,551
Net income	—	—		—		—			—			—			—			67,618		67,618
Other comprehensive loss	—	—		—		—			—			—			(159,825		)	—		(159,825		)
Issuance of common stock and release of treasury stock for employee equity awards	31,068	—		297		63			(50		)	—			—			—		13
Issuance of common stock under ATM Program	19,100	—		—		—			8,202			—			—			—		8,202
Dividend distribution on common stock, $2.28 per share	—	—		—		—			—			(181,207		)	—			—		(181,207		)
Settlement of accrued dividends on vested equity awards	—	—		—		—			103			(43		)	—			—		60
Accrued dividends on unvested equity awards	—	—		—		—			—			(2,755		)	—			—		(2,755		)
Stock-based compensation, net of estimated forfeitures	—	—		—		—			51,870			—			—			—		51,870
Balance as of June 30, 2018	79,907,084	80		(399,088	)	(145,632		)	10,253,155			(2,960,183		)	(877,994		)	655,101		6,924,527
Net income	—	—		—		—			—			—			—			124,825		124,825
Other comprehensive loss	—	—		—		—			—			—			(44,154		)	—		(44,154		)
Issuance of common stock and release of treasury stock for employee equity awards	268,086	—		1,968		416			23,827			—			—			—		24,243
Issuance of common stock under ATM Program	612,422	1		—		—			265,671			—			—			—		265,672
Dividend distribution on common stock, $2.28 per share	—	—		—		—			—			(182,304		)	—			—		(182,304		)
Settlement of accrued dividends on vested equity awards	—	—		—		—			367			(263		)	—			—		104
Accrued dividends on unvested equity awards	—	—		—		—			—			(2,680		)	—			—		(2,680		)
Stock-based compensation, net of estimated forfeitures	—	—		—		—			49,940			—			—			—		49,940
Balance as of September 30, 2018	80,787,592	$	81	(397,120	)	$	(145,216	)	$	10,592,960		$	(3,145,430	)	$	(922,148	)	$	779,926	$	7,160,173

Schedule of changes in accumulated other comprehensive loss

The changes in accumulated other comprehensive loss, net of tax, by components are as follows (in thousands):



	Balance as of December 31, 2018			Net Change			Balance as of September 30, 2019
Foreign currency translation adjustment ("CTA") loss	$	(998,603	)	$	(341,484	)	$	(1,340,087	)
Unrealized gain on cash flow hedges ⁽¹⁾	19,480			19,086			38,566
Net investment hedge CTA gain ⁽¹⁾	34,325			227,890			262,215
Net actuarial loss on defined benefit plans ⁽²⁾	(904		)	(26		)	(930		)
Accumulated other comprehensive loss attributable to Equinix	$	(945,702	)	$	(94,534	)	$	(1,040,236	)


⁽¹⁾	Refer to Note 6 for a discussion of the amounts reclassified from accumulated other comprehensive loss to net income.

⁽²⁾

The Company has a defined benefit pension plan covering all employees in one country where such plan is mandated by law. The Company does not have any defined benefit plans in any other countries. The unamortized gain (loss) on defined benefit plans includes gains or losses resulting from a change in the value of either the projected benefit obligation or the plan assets resulting from a change in an actuarial assumption, net of amortization.

Schedule of stock-based compensation expense by operating expense category

The following table presents, by operating expense category, the Company's stock-based compensation expense recognized in the Company's condensed consolidated statements of operations (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Cost of revenues	$	7,104	$	4,600	$	18,616	$	13,106
Sales and marketing	15,794		14,166		44,252		39,980
General and administrative	40,973		28,822		111,545		86,763
Total	$	63,871	$	47,588	$	174,413	$	139,849