XML 69 R28.htm IDEA: XBRL DOCUMENT

Equity Method Investments (Tables)

9 Months Ended

Sep. 30, 2023

Equity Method Investments and Joint Ventures [Abstract]

The following table summarizes our equity method investments (in thousands), which were included in other assets on the condensed consolidated balance sheets:


Investee	Ownership Percentage	September 30, 2023		December 31, 2022
EMEA 1 Joint Venture with GIC	20%	$	150,165	$	148,895
VIE Joint Ventures	20%	243,540		191,680
Other	Various	10,245		7,570
Total		$	403,950	$	348,145

Schedule of The Maximum Exposure Losses of VIE Joint Ventures

The following table summarizes our maximum exposure to loss related to the VIE Joint Ventures as of September 30, 2023 (in thousands):


	VIE Joint Ventures
Equity Investment	$	243,540
Outstanding Receivables	26,706
Future Equity Contribution Commitments (1)	45,211
Maximum Future Payments under Debt Guarantees (2)	144,522
Total	$	459,979

(1)The joint ventures' partners are required to make additional equity contributions proportionately upon certain occurrences, such as a shortfall in capital necessary to complete certain construction phases or make interest payments on their outstanding debt.

(2)In connection with our 20% equity investment in the EMEA 2 Joint Venture, we provided the lenders with our guarantees covering 20% of all payments of principal and interest due under EMEA 2 Joint Venture's credit facility agreements. A portion of the guarantees related to our AMER 1 Joint Venture (see Note 11).

Schedule of Other Related Party Transactions

The following table presents the revenues and expenses from these arrangements with the Joint Ventures in our condensed consolidated statements of operations (in thousands):


		Three Months Ended September 30,				Nine Months Ended September 30,
Related Party	Nature of Transaction	2023		2022		2023		2022
EMEA 1 Joint Venture	Revenues	$	8,520	$	5,957	$	22,512	$	31,138
EMEA 1 Joint Venture	Expenses (1)	4,406		2,010		12,650		5,422
VIE Joint Ventures (2)	Revenues	13,153		9,551		52,220		29,739

(1)Balances primarily consist of rent expenses for a 15-year sub-lease agreement with the EMEA 1 Joint Venture for a London data center.

(2)Expenses from transactions with VIE Joint Ventures were insignificant for the three and nine months ended September 30, 2023 and 2022.

The following table presents the assets and liabilities from related party transactions with the Joint Ventures in our condensed consolidated balance sheets (in thousands):


Related Party	Balance Sheet Line Item	September 30, 2023		December 31, 2022
EMEA 1 Joint Venture	Receivables	$	32,824	$	73,929
	Contract Assets	7,170		7,261
	Finance Lease Right-of-Use Assets	95,409		100,968
	Operating Lease Right-of-Use Assets	1,443		—

	Operating Lease Right-of-Use Liabilities	1,495		—
	Other Liabilities and Payables (1)	40,844		20,160
	Deferred Revenue	14,853		15,470
	Finance Lease Right-of-Use Liabilities	106,857		108,603
VIE Joint Ventures	Receivables	26,706		19,935
	Contract Assets	22,679		5,281
	Finance Lease Right-of-Use Assets	71,308		—
	Operating Lease Right-of-Use Assets	1,153		—
	Operating Lease Right-of-Use Liabilities	1,100		—
	Other Liabilities and Payables	55		—
	Deferred Revenue	5,038		—
	Finance Lease Right-of-Use Liabilities	73,750		—

(1)The balance primarily relates to the obligation to pay for future construction for certain sites sold as a part of the EMEA 1 Joint Venture transaction.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details