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Stockholders' Equity
 6 Months Ended
Jun. 30, 2020
Equity [Abstract]  
Stockholders' Equity Stockholders' Equity
Stockholders' Equity Rollforward
The following tables provide a rollforward of stockholders' equity for the three and six months ended June 30, 2020 and 2019 (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
 
 
 
 
 
 
 
Balance as of December 31, 2019
85,700,953

 
$
86

 
(392,567
)
 
$
(144,256
)
 
$
12,696,433

 
$
(4,168,469
)
 
$
(934,613
)
 
$
1,391,425

 
$
8,840,606

 
$
(224
)
 
$
8,840,382

Adjustment from adoption of new accounting standard update
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(900
)
 
(900
)
 
—

 
(900
)
Net income
—

 
—

 
—

 
—

 
—

 
—

 
—

 
118,792

 
118,792

 
165

 
118,957

Other comprehensive loss
—

 
—

 
—

 
—

 
—

 
—

 
(272,056
)
 
—

 
(272,056
)
 
(11
)
 
(272,067
)
Issuance of common stock and release of treasury stock for employee equity awards
405,550

 
—

 
50,594

 
16,958

 
13,432

 
—

 
—

 
—

 
30,390

 
—

 
30,390

Issuance of common stock under ATM Program
162,530

 
—

 
—

 
—

 
101,791

 
—

 
—

 
—

 
101,791

 
—

 
101,791

Dividend distribution on common stock, $2.66 per share
—

 
—

 
—

 
—

 
—

 
(227,387
)
 
—

 
—

 
(227,387
)
 
—

 
(227,387
)
Settlement of accrued dividends on vested equity awards
—

 
—

 
—

 
—

 
109

 
(403
)
 
—

 
—

 
(294
)
 
—

 
(294
)
Accrued dividends on unvested equity awards
—

 
—

 
—

 
—

 
—

 
(3,268
)
 
—

 
—

 
(3,268
)
 
—

 
(3,268
)
Stock-based compensation, net of estimated forfeitures
—

 
—

 
—

 
—

 
81,690

 
—

 
—

 
—

 
81,690

 
—

 
81,690

Balance as of March 31, 2020
86,269,033

 
86

 
(341,973
)
 
(127,298
)
 
12,893,455

 
(4,399,527
)
 
(1,206,669
)
 
1,509,317

 
8,669,364

 
(70
)
 
8,669,294

Net income
—

 
—

 
—

 
—

 
—

 
—

 
—

 
133,304

 
133,304

 
46

 
133,350

Other comprehensive income
—

 
—

 
—

 
—

 
—

 
—

 
66,378

 
—

 
66,378

 
2

 
66,380

Issuance of common stock and release of treasury stock for employee equity awards
34,146

 
—

 
688

 
256

 
(256
)
 
—

 
—

 
—

 
—

 
—

 
—

Issuance of common stock for equity offering
2,587,500

 
3

 
 
 
 
 
1,683,103

 
 
 
 
 
 
 
1,683,106

 
 
 
1,683,106

Dividend distribution on common stock, $2.66 per share
—

 
—

 
—

 
—

 
—

 
(235,334
)
 
—

 
—

 
(235,334
)
 
—

 
(235,334
)
Settlement of accrued dividends on vested equity awards
—

 
—

 
—

 
—

 
—

 
(44
)
 
—

 
—

 
(44
)
 
—

 
(44
)
Accrued dividends on unvested equity awards
—

 
—

 
—

 
—

 
—

 
(4,136
)
 
—

 
—

 
(4,136
)
 
—

 
(4,136
)
Stock-based compensation, net of estimated forfeitures
—

 
—

 
—

 
—

 
75,642

 
—

 
—

 
—

 
75,642

 
—

 
75,642

Balance as of June 30, 2020
88,890,679

 
$
89

 
(341,285
)
 
$
(127,042
)
 
$
14,651,944

 
$
(4,639,041
)
 
$
(1,140,291
)
 
$
1,642,621

 
$
10,388,280

 
$
(22
)
 
$
10,388,258

 
 
 
 
 
 
 
 
 
Additional
Paid-in Capital
 
Accumulated
Dividends
 
AOCI (Loss)
 
Retained
Earnings
 
Equinix
Stockholders'
Equity
 
Non-controlling interests
 
Total Stockholders' Equity
 
Common Stock
 
Treasury Stock
 
 
 
 
 
 
 
 
Shares
 
Amount
 
Shares
 
Amount
 
 
 
 
 
 
 
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
)
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


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,
2019
 
Net
Change
 
Balance as of
June 30,
2020
Foreign currency translation adjustment ("CTA") loss
$
(1,056,918
)
 
$
(232,497
)
 
$
(1,289,415
)
Unrealized gain (loss) on cash flow hedges (1)
15,638

 
(21,124
)
 
(5,486
)
Net investment hedge CTA gain (1)
107,619

 
47,888

 
155,507

Net actuarial gain (loss) on defined benefit plans (2)
(952
)
 
55

 
(897
)
Accumulated other comprehensive loss attributable to Equinix
$
(934,613
)
 
$
(205,678
)
 
$
(1,140,291
)

 
 
(1) 
Refer to Note 7 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.
Changes in foreign currencies can have a significant impact to the Company's consolidated balance sheets (as evidenced above in the Company's foreign currency translation loss), as well as its consolidated results of operations, as amounts in foreign currencies are generally translated into more U.S. Dollars when the U.S. Dollar weakens or fewer U.S. Dollars when the U.S. Dollar strengthens. As of June 30, 2020, the U.S. Dollar was generally stronger relative to certain of the currencies of the foreign countries in which the Company operates as compared to December 31, 2019. This overall strengthening of the U.S. Dollar had an overall unfavorable impact on the Company's condensed consolidated financial position because the foreign denominations translated into fewer U.S. Dollars as evidenced by an increase in foreign currency translation loss for the six months ended June 30, 2020 as reflected in the above table. The volatility of the U.S. Dollar as compared to the other currencies in which the Company operates could have a significant impact on its condensed consolidated financial position and results of operations including the amount of revenue that the Company reports in future periods.
Common Stock
In March 2019, the Company issued and sold 2,985,575 shares of common stock in a public offering pursuant to a registration statement and a related prospectus and prospectus supplement. The Company received net proceeds of approximately $1,213.4 million, net of underwriting discounts, commissions and offering expenses.
In May 2020, the Company issued and sold 2,587,500 shares of common stock in a public offering pursuant to a registration statement and a related prospectus and prospectus supplement. The Company received net proceeds of approximately $1,683.1 million, net of underwriting discounts, commissions and offering expenses.
In December 2018, the Company launched an ATM program, under which it may offer and sell from time to time up to an aggregate of $750.0 million of its common stock in "at the market" transactions (the "ATM Program"). For the six months ended June 30, 2020, the Company sold 162,530 shares under the ATM Program, for approximately $101.8 million, net of payment of commissions to sales agents and other offering expenses. For the six months ended June 30, 2019, the Company sold 722,361 shares under the ATM program, for approximately $348.2 million, net of payment of commissions to sales agents and other offering expenses.
Stock-Based Compensation
For the six months ended June 30, 2020, the Compensation Committee and/or the Stock Award Committee of the Company's Board of Directors, as the case may be, approved the issuance of an aggregate of 680,543 shares of restricted stock units to certain employees, including executive officers. These equity awards are subject to vesting provisions and have a weighted-average grant date fair value of $583.99 per share and a weighted-average requisite service period of 3.33 years. The valuation of restricted stock units with only a service condition or a service and performance condition require no significant assumptions as the fair value for these types of equity awards is based
solely on the fair value of the Company's stock price on the date of grant. The Company used revenues and adjusted funds from operations ("AFFO") per share as the performance measurements in the restricted stock units with both service and performance conditions that were granted in the six months ended June 30, 2020.
The Company uses a Monte Carlo simulation option-pricing model to determine the fair value of restricted stock units with a service and market condition. The Company used total shareholder return ("TSR") as the performance measurement in the restricted stock units with a service and market condition that were granted in the six months ended June 30, 2020. There were no significant changes in the assumptions used to determine the fair value of restricted stock units with a service and market condition that were granted in 2020 compared to the prior year.
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
June 30,
 
Six Months Ended
June 30,
 
2020
 
2019
 
2020
 
2019
Cost of revenues
$
7,655

 
$
6,500

 
$
16,998

 
$
11,512

Sales and marketing
18,215

 
15,157

 
36,760

 
28,458

General and administrative
49,974

 
39,862

 
102,652

 
70,572

Total
$
75,844

 
$
61,519

 
$
156,410

 
$
110,542