Stockholders' Equity

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Stockholders' Equity

Stockholders' Equity

Stockholders' Equity Rollforward

The following tables provide a rollforward of our stockholders' equity for the three and nine months ended September 30, 2021 and 2020 (in thousands, except share and per share data):

											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, 2020	89,462,304	$	89	(328,052)	$	(122,118)	$	15,028,357	$	(5,119,274)	$	(913,368)	$	1,760,302	$	10,633,988	$	130	$	10,634,118
Net income (loss)	—	—		—	—		—		—		—		156,362		156,362		(288)		156,074
Other comprehensive loss	—	—		—	—		—		—		(95,480)		—		(95,480)		(1)		(95,481)
Issuance of common stock and release of treasury stock for employee equity awards	428,618	1		11,640	4,332		35,701		—		—		—		40,034		—		40,034
Dividend distribution on common stock, $2.87 per share	—	—		—	—		—		(256,321)		—		—		(256,321)		—		(256,321)
Settlement of accrued dividends on vested equity awards	—	—		—	—		—		(437)		—		—		(437)		—		(437)
Accrued dividends on unvested equity awards	—	—		—	—		—		(3,661)		—		—		(3,661)		—		(3,661)
Stock-based compensation, net of estimated forfeitures	—	—		—	—		102,349		—		—		—		102,349		—		102,349
Balance as of March 31, 2021	89,890,922	90		(316,412)	(117,786)		15,166,407		(5,379,693)		(1,008,848)		1,916,664		10,576,834		(159)		10,576,675
Net income	—	—		—	—		—		—		—		68,339		68,339		148		68,487
Other comprehensive income	—	—		—	—		—		—		67,734		—		67,734		11		67,745
Issuance of common stock and release of treasury stock for employee equity awards	36,674	—		1,389	516		(516)		—		—		—		—		—		—
Issuance of common stock under ATM Program	137,604	—		—	—		99,599		—		—		—		99,599		—		99,599
Dividend distribution on common stock, $2.87 per share	—	—		—	—		—		(257,199)		—		—		(257,199)		—		(257,199)
Settlement of accrued dividends on vested equity awards	—	—		—	—		—		(55)		—		—		(55)		—		(55)
Accrued dividends on unvested equity awards	—	—		—	—		—		(4,016)		—		—		(4,016)		—		(4,016)
Stock-based compensation, net of estimated forfeitures	—	—		—	—		95,236		—		—		—		95,236		—		95,236
Balance as of June 30, 2021	90,065,200	90		(315,023)	(117,270)		15,360,726		(5,640,963)		(941,114)		1,985,003		10,646,472		—		10,646,472
Net income	—	—		—	—		—		—		—		152,216		152,216		(190)		152,026
Other comprehensive loss	—	—		—	—		—		—		(100,647)		—		(100,647)		—		(100,647)
Issuance of common stock and release of treasury stock for employee equity awards	278,731	—		12,292	4,574		33,021		—		—		—		37,595		—		37,595

											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
Dividend distribution on common stock, $2.87 per share	—	—		—	—		—		(257,769)		—		—		(257,769)		—		(257,769)
Settlement of accrued dividends on vested equity awards	—	—		—	—		—		(299)		—		—		(299)		—		(299)
Accrued dividends on unvested equity awards	—	—		—	—		—		(3,906)		—		—		(3,906)		—		(3,906)
Stock-based compensation, net of estimated forfeitures	—	—		—	—		95,101		—		—		—		95,101		—		95,101
Balance as of September 30, 2021	90,343,931	$	90	(302,731)	$	(112,696)	$	15,488,848	$	(5,902,937)	$	(1,041,761)	$	2,137,219	$	10,568,763	$	(190)	$	10,568,573

							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, 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
Net income	—	—		—	—		—		—		—		66,687		66,687		144		66,831
Other comprehensive loss	—	—		—	—		—		—		38,490		—		38,490		30		38,520
Issuance of common stock and release of treasury stock for employee equity awards	287,635	—		11,705	4,356		27,372		—		—		—		31,728		—		31,728
Issuance of common stock under ATM Program	252,982	—		—	—		196,477		—		—		—		196,477		—		196,477

							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
Dividend distribution on common stock, $2.66 per share	—	—		—	—		—		(236,538)		—		—		(236,538)		—		(236,538)
Settlement of accrued dividends on vested equity awards	—	—		—	—		81		(275)		—		—		(194)		—		(194)
Accrued dividends on unvested equity awards	—	—		—	—		—		(3,764)		—		—		(3,764)		—		(3,764)
Stock-based compensation, net of estimated forfeitures	—	—		—	—		74,648		—		—		—		74,648		—		74,648
Balance as of September 30, 2020	89,431,296	$	89	(329,580)	$	(122,686)	$	14,950,522	$	(4,879,618)	$	(1,101,801)	$	1,709,308	$	10,555,814	$	152	$	10,555,966

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, 2020		Net Change		Balance as of September 30, 2021
Foreign currency translation adjustment ("CTA") gain (loss)	$	(508,415)	$	(444,701)	$	(953,116)
Unrealized gain (loss) on cash flow hedges (1)	(67,152)		52,048		(15,104)
Net investment hedge CTA gain (loss) (1)	(336,934)		264,219		(72,715)
Net actuarial gain (loss) on defined benefit plans (2)	(867)		41		(826)
Accumulated other comprehensive loss attributable to Equinix	$	(913,368)	$	(128,393)	$	(1,041,761)

(1)Refer to Note 7 for a discussion of the amounts reclassified from accumulated other comprehensive loss to net income.

(2)We have two defined benefit pension plans covering all employees in two countries where such plan is mandated by law.

Changes in foreign currencies can have a significant impact to our condensed consolidated balance sheets (as evidenced above in our foreign currency translation loss), as well as our 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 September 30, 2021, the U.S. Dollar was generally stronger relative to certain of the currencies of the foreign countries in which we operate as compared to December 31, 2020. Because of this, the U.S. Dollar had an overall unfavorable impact on our 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 nine months ended September 30, 2021 as reflected in the condensed consolidated statements of comprehensive income (loss). The volatility of the U.S. Dollar as compared to the other currencies in which we operate could have a significant impact on our condensed consolidated financial position and results of operations including the amount of revenue that we report in future periods.

Common Stock

In October 2020, we established an ATM program, under which we may, from time to time, offer and sell up to an aggregate of $1.5 billion of our common stock to or through sales agents in "at the market" transactions (the "2020 ATM Program"). For the three months ended September 30, 2021, we did not sell any shares under the 2020 ATM Program. For the nine months ended September 30, 2021, we sold 137,604 shares under the 2020 ATM Program, for approximately $99.6 million, net of payment of commissions to sales agents and other offering expenses. As of September 30, 2021, we had $1.4 billion available for sale under the 2020 ATM Program. For the three and nine months ended September 30, 2020, we sold 252,982 shares and 415,512 shares respectively, under our prior ATM program, for approximately $196.5 million and $298.3 million, respectively, net of payment of commissions to sales agents and other offering expenses.

In May 2020, we 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. We received net proceeds of approximately $1.7 billion, net of underwriting discounts, commissions and offering expenses.

Stock-Based Compensation

For the nine months ended September 30, 2021, the Compensation Committee and/or the Stock Award Committee of our Board of Directors, as the case may be, approved the issuance of an aggregate of 735,818 shares of restricted stock units ("RSUs") to certain employees, including executive officers. These equity awards are subject to vesting provisions and have a weighted-average grant date fair value of $671.89 per share and a weighted-average requisite service period of 3.60 years. The valuation of RSUs 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 our stock price on the date of grant. We use revenues and adjusted

funds from operations ("AFFO") per share as the performance measurements in the RSUs with both service and performance conditions that were granted in the nine months ended September 30, 2021.

We use a Monte Carlo simulation option-pricing model to determine the fair value of RSUs with a service and market condition. We used total shareholder return ("TSR") as the performance measurement in the RSUs with a service and market condition that were granted in the nine months ended September 30, 2021. There were no significant changes in the assumptions used to determine the fair value of RSUs with a service and market condition that were granted in 2021 compared to the prior year.

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Cost of revenues	$	9,713	$	7,856	$	28,188	$	24,854
Sales and marketing	20,565		17,630		59,047		54,390
General and administrative	64,432		49,762		180,160		152,414
Total	$	94,710	$	75,248	$	267,395	$	231,658