UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number 001-40205

 EQUINIX, INC.

(Exact name of registrant as specified in its charter)

Delaware	77-0487526
(State of incorporation)	(I.R.S. Employer Identification No.)

One Lagoon Drive, Redwood City, California 94065

(Address of principal executive offices, including ZIP code)

(650) 598-6000

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol	Name of each exchange on which registered
Common Stock, $0.001	EQIX	The Nasdaq Stock Market LLC
0.250% Senior Notes due 2027		The Nasdaq Stock Market LLC
1.000% Senior Notes due 2033		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒   No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     Yes  ☒   No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of "large accelerated

filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐   No  ☒

The number of shares outstanding of the registrant's Common Stock as of May 7, 2024 was 94,905,734.

EQUINIX, INC.

INDEX

		Page No.
	Summary of Risk Factors	4
Part I - Financial Information
Item 1.	Condensed Consolidated Financial Statements (unaudited):	6
	Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023	6
	Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023	7
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31, 2024 and 2023	8
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023	9
	Notes to Condensed Consolidated Financial Statements	10
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	35
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	50
Item 4.	Controls and Procedures	52
Part II - Other Information
Item 1.	Legal Proceedings	53
Item 1A.	Risk Factors	53
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	80
Item 3.	Defaults Upon Senior Securities	80
Item 4.	Mine Safety Disclosure	80
Item 5.	Other Information	81
Item 6.	Exhibits	82
Signatures		89

3

Summary of Risk Factors

Our business is subject to numerous risks and uncertainties that make an investment in our securities speculative or risky, any one of which could materially adversely affect our results of operations, financial condition or business. These risks include, but are not limited to, those listed below. This list is not complete, and should be read together with the section titled “Risk Factors” in this Quarterly Report on Form 10-Q, as well as the other information in this Quarterly Report on Form 10-Q and the other filings that we make with the U.S. Securities and Exchange Commission (the “SEC”).

Risks Related to the Macro Environment

•Inflation in the global economy, increased interest rates, political dissension and adverse global economic conditions, like the ones we are currently experiencing, could negatively affect our business and financial condition.

•Our business could be harmed by increased costs to procure power, prolonged power outages, shortages or capacity constraints as well as insufficient access to power.

•The ongoing military conflicts between Russia and Ukraine and in the Middle East could negatively affect our business and financial condition.

Risks Related to our Operations

•We experienced a cybersecurity incident in the past and may be vulnerable to future security breaches, which could disrupt our operations and have a material adverse effect on our business, results of operation and financial condition.

•Any failure of our physical infrastructure or negative impact on our ability to meet our obligations to our customers, or damage to customer infrastructure within our IBX data centers, could lead to significant costs and disruptions that could reduce our revenue and harm our business reputation and financial condition.

•We are currently making significant investments in our back-office information technology systems and processes. Difficulties from or disruptions to these efforts may interrupt our normal operations and adversely affect our business and results of operations.

•The level of insurance coverage that we purchase may prove to be inadequate.

•If we are unable to implement our evolving organizational structure, or if we are unable to recruit or retain key qualified personnel, our business could be harmed.

•The failure to obtain favorable terms when we renew our IBX data center leases, or the failure to renew such leases, could harm our business and results of operations.

•We depend on a number of third parties to provide internet connectivity to our IBX data centers; if connectivity is interrupted or terminated, our results of operations and cash flow could be materially and adversely affected.

•The use of high-power density equipment may limit our ability to fully utilize the space in our older IBX data centers.

•The development and use of artificial intelligence in the workplace presents risks and challenges that may adversely impact our business and operating results.

•We may be subject to securities class action and other litigation, which may harm our business and results of operations.

Risks Related to our Offerings and Customers

•Our offerings have a long sales cycle that may harm our revenue and results of operations.

•We may not be able to compete successfully against current and future competitors.

•If we cannot continue to develop, acquire, market and provide new offerings or enhancements to existing offerings that meet customer requirements and differentiate us from our competitors, our results of operations could suffer.

•We have government customers, which subjects us to risks including early termination, audits, investigations, sanctions and penalties.

•Because we depend on the development and growth of a balanced customer base, including key magnet customers, failure to attract, grow and retain this base of customers could harm our business and results of operations.

Risks Related to our Financial Results

4

•The market price of our stock may continue to be highly volatile, and the value of an investment in our common stock may decline.

•Our results of operations may fluctuate.

•We may incur goodwill and other intangible asset impairment charges, or impairment charges to our property, plant and equipment, which could result in a significant reduction to our earnings.

•We have incurred substantial losses in the past and may incur additional losses in the future.

Risks Related to Our Expansion Plans

•Our construction of new IBX data centers, IBX data center expansions or IBX data center redevelopment could involve significant risks to our business.

•Acquisitions present many risks, and we may not realize the financial or strategic goals that were contemplated at the time of any transaction.

•The anticipated benefits of our joint ventures may not be fully realized, or take longer to realize than expected.

•Joint venture investments could expose us to risks and liabilities in connection with the formation of the new joint ventures, the operation of such joint ventures without sole decision-making authority, and our reliance on joint venture partners who may have economic and business interests that are inconsistent with our business interests.

•If we cannot effectively manage our international operations and successfully implement our international expansion plans, our business and results of operations would be adversely impacted.

•We continue to invest in our expansion efforts, but may not have sufficient customer demand in the future to realize expected returns on these investments.

Risks Related to Our Capital Needs and Capital Strategy

•Our substantial debt could adversely affect our cash flows and limit our flexibility to raise additional capital.

•Sales or issuances of shares of our common stock may adversely affect the market price of our common stock.

•If we are not able to generate sufficient operating cash flows or obtain external financing, our ability to fund incremental expansion plans may be limited.

•Our derivative transactions expose us to counterparty credit risk.

Risks Related to Environmental Laws and Climate Change Impact

•Environmental regulations may impose upon us new or unexpected costs.

•Our business may be adversely affected by physical risks related to climate change and our response to it.

•We may fail to achieve our Environmental, Social and Governance ("ESG") and sustainability goals, or may encounter objections to them, either of which may adversely affect public perception of our business and affect our relationship with our customers, our stockholders and/or other stakeholders.

Risks Related to Certain Regulations and Laws, Including Tax Laws

•Geopolitical events contribute to an already complex and evolving regulatory landscape. If we cannot comply with the evolving laws and regulations in the countries in which we operate, we may be subject to litigation and/or sanctions, adverse revenue impacts, increased costs and our business and results of operations could be negatively impacted.

•Government regulation related to our business or failure to comply with laws and regulations may adversely affect our business.

•Changes in U.S. or foreign tax laws, regulations, or interpretations thereof, including changes to tax rates, may adversely affect our financial statements and cash taxes.

•Our business could be adversely affected if we are unable to maintain our complex global legal entity structure.

Risks Related to Our REIT Status in the U.S.

•We have a number of risks related to our qualification as a real estate investment trust for federal income tax purposes ("REIT"), including the risk that we may not be able to maintain our qualification for taxation as a REIT which could expose us to substantial corporate income tax and have a materially adverse effect on our business, financial condition, and results of operations.

5

PART I - FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

EQUINIX, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except share and per share data)

	March 31, 2024		December 31, 2023
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	1,527	$	2,096
Accounts receivable, net of allowance of $17 and $17	1,079		1,004
Other current assets	561		468
Total current assets	3,167		3,568
Property, plant and equipment, net	18,511		18,601
Operating lease right-of-use assets	1,395		1,449
Goodwill	5,621		5,737
Intangible assets, net	1,624		1,705
Other assets	1,619		1,591
Total assets	$	31,937	$	32,651
Liabilities, Redeemable Non-Controlling Interest and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued expenses	$	1,077	$	1,187
Accrued property, plant and equipment	321		398
Current portion of operating lease liabilities	136		131
Current portion of finance lease liabilities	165		138
Current portion of mortgage and loans payable	7		8
Current portion of senior notes	999		998
Other current liabilities	186		302
Total current liabilities	2,891		3,162
Operating lease liabilities, less current portion	1,280		1,331
Finance lease liabilities, less current portion	2,058		2,123
Mortgage and loans payable, less current portion	654		663
Senior notes, less current portion	11,978		12,062
Other liabilities	752		796
Total liabilities	19,613		20,137
Commitments and contingencies (Note 9)
Redeemable non-controlling interest	25		25
Common stockholders’ equity (shares in thousands):
Common stock, $0.001 par value per share: 300,000 shares authorized; 95,037 issued and 94,904 outstanding in 2024 and 94,630 issued and 94,479 outstanding in 2023	—		—
Additional paid-in capital	18,779		18,596
Treasury stock, at cost; 133 shares in 2024 and 151 shares in 2023	(50)		(56)
Accumulated dividends	(9,097)		(8,695)
Accumulated other comprehensive loss	(1,498)		(1,290)
Retained earnings	4,165		3,934
Total stockholders’ equity	12,299		12,489
Total liabilities, redeemable non-controlling interest and stockholders’ equity	$	31,937	$	32,651

See accompanying notes to condensed consolidated financial statements.

6

EQUINIX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except share and per share data)

	Three Months Ended March 31,
	2024		2023
	(Unaudited)
Revenues	$	2,127	$	1,998
Costs and operating expenses:
Cost of revenues	1,091		1,006
Sales and marketing	226		210
General and administrative	444		395
Transaction costs	2		2
Loss on asset sales	—		1
Total costs and operating expenses	1,763		1,614
Income from operations	364		384
Interest income	24		19
Interest expense	(104)		(97)
Other income (expense)	(6)		8
Loss on debt extinguishment	(1)		—
Income before income taxes	277		314
Income tax expense	(46)		(55)
Net income	$	231	$	259
Earnings per share (“EPS”) attributable to common stockholders:
Basic EPS	$	2.44	$	2.78
Weighted-average shares for basic EPS (in thousands)	94,665		92,971
Diluted EPS	$	2.43	$	2.77
Weighted-average shares for diluted EPS (in thousands)	95,156		93,340

See accompanying notes to condensed consolidated financial statements.

7

EQUINIX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in millions)

	Three Months Ended March 31,
	2024		2023
	(Unaudited)
Net income	$	231	$	259
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment (“CTA”) gain (loss), net of tax effects of $0 and $0	(358)		157
Net investment hedge CTA gain (loss), net of tax effects of $0 and $0	130		(40)
Unrealized gain (loss) on cash flow hedges, net of tax effects of $(6) and $6	20		(13)
Total other comprehensive income (loss), net of tax	(208)		104
Comprehensive income, net of tax	$	23	$	363

See accompanying notes to condensed consolidated financial statements.

8

EQUINIX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

	Three Months Ended March 31,
	2024		2023
	(Unaudited)
Cash flows from operating activities:
Net income	$	231	$	259
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	474		405
Stock-based compensation	101		99
Amortization of intangible assets	52		52
Amortization of debt issuance costs and debt discounts	5		5
Provision for credit loss allowance	1		3
Loss on asset sales	—		1
Loss on debt extinguishment	1		—
Other items	4		4
Changes in operating assets and liabilities:
Accounts receivable	(85)		(54)
Income taxes, net	(9)		5
Other assets	(77)		—
Operating lease right-of-use assets	38		35
Operating lease liabilities	(32)		(34)
Accounts payable and accrued expenses	(56)		(73)
Other liabilities	(50)		(15)
Net cash provided by operating activities	598		692
Cash flows from investing activities:
Purchases of investments	(3)		(24)
Real estate acquisitions	(17)		(40)
Purchases of other property, plant and equipment	(707)		(530)
Proceeds from sale of assets, net of cash transferred	—		72
Net cash used in investing activities	(727)		(522)
Cash flows from financing activities:
Proceeds from employee equity programs	48		45
Payment of dividends	(412)		(326)
Proceeds from public offering of common stock, net of issuance costs	—		301
Proceeds from senior notes, net of debt discounts	—		565
Repayment of finance lease liabilities	(31)		(36)
Repayment of mortgage and loans payable	(2)		(3)
Debt issuance costs	—		(4)
Net cash provided by (used in) financing activities	(397)		542
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash	(40)		24
Net increase (decrease) in cash, cash equivalents and restricted cash	(566)		736
Cash, cash equivalents and restricted cash at beginning of period	2,096		1,908
Cash, cash equivalents and restricted cash at end of period	$	1,530	$	2,644
Cash and cash equivalents	$	1,527	$	2,643
Current portion of restricted cash included in other current assets	3		1
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows	$	1,530	$	2,644

See accompanying notes to condensed consolidated financial statements.

9

EQUINIX, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1.    Basis of Presentation and Significant Accounting Policies

Basis of Presentation and Consolidation

The accompanying unaudited condensed consolidated financial statements have been prepared by Equinix, Inc. (collectively with its consolidated subsidiaries referred to as "Equinix," the "Company," "we," "our," or "us") and reflect all adjustments, consisting only of normal recurring adjustments, which in the opinion of management are necessary to fairly state the financial position and the results of operations for the interim periods presented.

Our condensed consolidated balance sheet data as of December 31, 2023 has been derived from audited consolidated financial statements as of that date. Our condensed consolidated financial statements have been prepared in accordance with the regulations of the Securities and Exchange Commission ("SEC"), but omit certain information and footnote disclosure necessary to present the statements in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP" or "GAAP"). For further information, refer to the Consolidated Financial Statements and Notes thereto included in our Form 10-K as filed with the SEC on February 16, 2024. Results for the interim periods are not necessarily indicative of results for the entire fiscal year.

All intercompany accounts and transactions have been eliminated in consolidation.

Income Taxes

We elected to be taxed as a real estate investment trust for U.S. federal income tax purposes ("REIT") beginning with our 2015 taxable year. As a result, we may deduct the dividends paid to our stockholders from taxable income generated by our REIT and qualified REIT subsidiaries ("QRSs"). Our dividends paid deduction generally eliminates the U.S. federal taxable income of our REIT and QRSs, resulting in no U.S. federal income tax due. However, our domestic taxable REIT subsidiaries ("TRSs") are subject to U.S. corporate income taxes on any taxable income generated by them. In addition, our foreign operations are subject to local income taxes regardless of whether the foreign operations are operated as QRSs or TRSs.

We accrue for income taxes during interim periods based on the estimated effective tax rate for the year. The effective tax rate is subject to change in the future due to various factors such as our operating performance, tax law changes and future business acquisitions.

Our effective tax rates were 16.6% and 17.6% for the three months ended March 31, 2024 and 2023, respectively.

Changes to Prior Period

We converted presentation of disclosures from thousands to millions in the first quarter of 2024. Certain rounding adjustments have been made to prior period disclosed amounts.

10

EQUINIX, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

Recent Accounting Pronouncements

Accounting Standards Not Yet Adopted

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting ("Topic 280"): Improvements to Reportable Segment Disclosure. The ASU is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted and retrospective adoption required. We are currently evaluating the extent of the impact of this ASU on disclosures in our condensed consolidated financial statements.

In December 2023, FASB issued ASU 2023-09, Income Taxes ("Topic 740"): Improvements to Income Tax Disclosures. This ASU is intended to enhance the transparency and decision usefulness of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. The ASU is effective for fiscal years beginning after December 15, 2024 and should be applied prospectively, with retrospective application and early adoption both permitted. We are currently evaluating the extent of the impact of this ASU on disclosures in our condensed consolidated financial statements.

Accounting Standards Adopted

Supplier Finance Programs

In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-04, "Liabilities-Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations". This guidance requires annual and interim disclosures for entities that use supplier finance programs in connection with the purchase of goods and services. The ASU is effective for fiscal years beginning after December 15, 2022, with early adoption permitted, except for the amendment on roll forward information, which is effective for fiscal years beginning after December 15, 2023. On January 1, 2023, we adopted this ASU and the adoption of this standard did not have an impact on our condensed consolidated financial statements.

Reference Rate Reform

In March 2020, FASB issued ASU 2020-04, Reference Rate Reform ("Topic 848"): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In addition, FASB issued ASU 2021-01, Reference Rate Reform ("Topic 848"), which clarifies the scope of Topic 848. Collectively, the guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. ASU 2021-01 is effective upon issuance and ASU 2020-04 was effective for all entities as of March 12, 2020, and together remained effective through December 31, 2022. In December 2022, FASB issued ASU 2022-06, Reference Rate Reform ("Topic 848"): Deferral of the Sunset Date of Topic 848. Because the current relief in Topic 848 may not cover a period of time during which a significant number of modifications may take place, the amendments in this update defer the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. We adopted these ASUs upon their respective issuances and resulted in no impact on our consolidated financial statements. We will evaluate our debt, derivative and lease contracts that may become eligible for modification relief and may apply the elections prospectively as needed.

11

EQUINIX, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

2. Revenue

Contract Balances

The following table summarizes the opening and closing balances of our accounts receivable, net; contract assets, current; contract assets, non-current; deferred revenue, current; and deferred revenue, non-current (in millions):

	Accounts receivable, net (1)		Contract assets, current		Contract assets, non-current		Deferred revenue, current		Deferred revenue, non-current
Beginning balances as of January 1, 2024	$	1,004	$	52	$	86	$	125	$	154
Closing balances as of March 31, 2024	1,079		59		79		129		146
Increase (Decrease)	$	75	$	7	$	(7)	$	4	$	(8)

(1) The net change in our allowance for credit losses was insignificant during the three months ended March 31, 2024.

The difference between the opening and closing balances of our accounts receivable, net, contract assets and deferred revenues primarily results from revenue growth and the timing difference between the satisfaction of our performance obligation and the customer's payment. The amount of revenue recognized during the three months ended March 31, 2024 from the opening deferred revenue balance as of January 1, 2024 was $34 million.

Remaining performance obligations

As of March 31, 2024, approximately $10.0 billion of total revenues, including deferred installation revenues, are expected to be recognized in future periods. Most of our revenue contracts have an initial term varying from one to five years, and thereafter, automatically renew in one-year increments. Included in the remaining performance obligations are contracts that are either under the initial term or under one-year renewal periods. We expect to recognize approximately 70% of our remaining performance obligations as revenues over the next two years, with more revenues expected to be recognized in the first year due to the impact of contract renewals. The remainder of the balance is generally expected to be recognized over the next three to five years. We estimate our remaining performance obligations at a point in time. Actual amounts and timing of revenue recognition may differ from these estimates due to changes in actual deployments dates, contract modifications, renewals and/or terminations.

The remaining performance obligations do not include variable consideration related to unsatisfied performance obligations such as the usage of metered power, service fees from xScaleTM data centers that are based on future events or actual costs incurred in the future, or any contracts that could be terminated without any significant penalties including the majority of interconnection revenues. The remaining performance obligations above include revenues to be recognized in the future related to arrangements where we are considered the lessor.

12

EQUINIX, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

3.    Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share ("EPS") for the periods presented ($ in millions except per share data; share data in thousands):

	Three Months Ended March 31,
	2024		2023
Net income	$	231	$	259
Weighted-average shares used to calculate basic EPS (in thousands)	94,665		92,971
Effect of dilutive securities (in thousands):
Employee equity awards	491		369
Weighted-average shares used to calculate diluted EPS (in thousands)	95,156		93,340
EPS attributable to common stockholders:
Basic EPS	$	2.44	$	2.78
Diluted EPS	$	2.43	$	2.77

We have excluded common stock related to employee equity awards in the diluted EPS calculation above of approximately 360 and 140 shares for the three months ended March 31, 2024 and 2023, respectively, because its effect would be anti-dilutive (in thousands).

4.    Equity Method Investments

We hold various equity method investments, primarily joint venture partnership arrangements, in order to invest in certain entities that are in line with our business development objectives, including the development and operation of xScale data centers. Some of these xScale joint ventures are classified as Variable Interest Entities ("VIEs"). The following table summarizes our equity method investments, which were included in other assets on the condensed consolidated balance sheets (in millions):

Investee	Ownership Percentage	March 31, 2024		December 31, 2023
EMEA 1 Joint Venture	20%	$	144	$	150
VIE Joint Ventures (1)	20%	300		308
Other	Various	10		10
Total		$	454	$	468

(1)Includes investments in xScale joint ventures in each of our three regions ("Asia-Pacific 1 Joint Venture", "Asia-Pacific 2 Joint Venture", "Asia-Pacific 3 Joint Venture", "EMEA 2 Joint Venture" and "AMER 1 Joint Venture"), which share a similar purpose, design and nature of assets.

Non-VIE Joint Venture

EMEA 1 Joint Venture

We invested in a joint venture in the form of a limited liability partnership to develop and operate xScale data centers in Europe (the "EMEA 1 Joint Venture"). The EMEA 1 Joint Venture is not a VIE given that both equity investors' interests have the characteristics of a controlling financial interest and it is sufficiently capitalized to sustain its operations, requiring additional funding from its partners only when expanding operations. Our share of income and losses of equity method investments from this joint venture was insignificant for the three months ended March 31, 2024 and 2023 and was included in other income (expense) on the condensed consolidated statement of operations.

13

EQUINIX, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

We committed to make future equity contributions to the EMEA 1 Joint Venture for funding its future development. As of March 31, 2024, we had future equity contribution commitments of $32 million.

VIE Joint Ventures

In March 2023, we invested in the AMER 1 Joint Venture. Upon formation of the joint venture, we sold the Mexico 3 ("MX3") data center in exchange for total consideration of $75 million. Consideration included $64 million of net cash proceeds, a 20% partnership interest in the AMER 1 Joint Venture with a fair value of $8 million, and $3 million of receivables. We recognized an insignificant loss on the sale of the MX3 data center.

The VIE Joint Ventures are considered VIEs because they do not have sufficient funds from operations to be self-sustaining. While we provide certain management services to their operations and earn fees for the performance of such services, the power to direct the activities of these joint ventures that most significantly impact economic performance is shared equally between us and our partners. These activities include data center construction and operations, sales and marketing, financing, and real estate purchases or sales. Decisions about these activities require the consent of both Equinix and our partners. We concluded that neither party is deemed to have predominant control over the VIE Joint Ventures and neither party is considered to be the primary beneficiary. Our share of losses of equity method investments from these joint ventures were insignificant for the three months ended March 31, 2024 and 2023, respectively. These amounts were included in other income (expense) on the condensed consolidated statement of operations.

The following table summarizes our maximum exposure to loss related to the VIE Joint Ventures as of March 31, 2024 (in millions):

	VIE Joint Ventures
Equity Investment	$	300
Outstanding Accounts Receivable	44
Contract Assets	56
Future Equity Contribution Commitments (1)	42
Maximum Future Payments under Debt Guarantees (2)	205
Total	$	647

(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 9).

Joint Venture Related Party Transactions

We have lease arrangements and provide various services to the EMEA 1 Joint Venture and the VIE Joint Ventures (collectively, the "Joint Ventures") through multiple agreements, including sales and marketing, development management, facilities management, and asset management. These transactions are generally considered to have been negotiated at arm's length. The following table presents the revenues and expenses from these arrangements with the Joint Ventures in our condensed consolidated statements of operations (in millions):

		Three Months Ended March 31,
Related Party	Nature of Transaction	2024		2023
EMEA 1 Joint Venture	Revenues	$	6	$	7
EMEA 1 Joint Venture	Expenses (1)	4		2
VIE Joint Ventures (2)	Revenues	38		22

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(Unaudited)

(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 months ended March 31, 2024 and 2023.

We have also sold certain data center facilities to our Joint Ventures and recognized gains or losses on asset sales as described above.

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

	EMEA 1 Joint Venture				VIE Joint Ventures
Balance Sheet	March 31, 2024		December 31, 2023		March 31, 2024		December 31, 2023
Accounts receivable, net	$	26	$	19	$	44	$	23
Other current assets (1)	11		19		52		43
Property, plant and equipment, net (2)	94		97		90		72
Operating lease right-of-use assets	2		2		2		2
Other assets (1)	—		—		14		21
Other current liabilities	5		9		6		6
Finance lease liabilities	109		111		93		75
Operating lease liabilities	2		2		2		2
Other liabilities (3)	49		50		—		—

(1)The balance primarily relates to contract assets and other receivables.

(2)The balance relates to finance lease right-of-use assets.

(3)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.

5.    Derivatives and Hedging Instruments

Derivatives Designated as Hedging Instruments

Net Investment Hedges

Foreign Currency Debt. We are exposed to the impact of foreign exchange rate fluctuations on the value of investments in our foreign subsidiaries whose functional currencies are other than the U.S. Dollar. In order to mitigate the impact of foreign currency exchange rates, we have entered into various foreign currency debt obligations, which are designated as hedges against our net investments in foreign subsidiaries. As of March 31, 2024 and December 31, 2023, the total principal amounts of foreign currency debt obligations designated as net investment hedges were $423 million and $1.5 billion, respectively.

Foreign Currency Forward Contracts. From time to time, we use foreign currency forward contracts, which are designated as net investment hedges, to hedge against the effect of foreign exchange rate fluctuations on our net investment in our foreign subsidiaries.

Certain of our customer agreements that are priced in currencies different from the functional or local currencies of the parties involved are deemed to have foreign currency forward contracts embedded in them. These embedded derivatives are separated from their host contracts and carried on our balance sheet at their fair value. The majority of these embedded derivatives arise as a result of our foreign subsidiaries pricing their customer contracts in U.S. Dollars. We use these forward contracts embedded within our customer agreements to hedge against the effect of foreign exchange rate fluctuations on our net investment in our foreign subsidiaries.

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(Unaudited)

Cross-currency Interest Rate Swaps. We also utilize cross-currency interest rate swaps, designated as net investment hedges, which effectively convert a portion of our U.S. dollar-denominated fixed-rate debt to foreign currency-denominated fixed-rate debt, to hedge the currency exposure associated with our net investment in our foreign subsidiaries.

The effect of net investment hedges on accumulated other comprehensive income and the condensed consolidated statements of operations for the three months ended March 31, 2024 and 2023 was as follows (in millions):

Amount of gain or (loss) recognized in accumulated other comprehensive income:
		Three Months Ended March 31,
		2024		2023
Foreign currency debt		$	29	$	(24)
Foreign currency forward contracts (included component) (1)		27		(1)
Foreign currency forward contracts (excluded component) (2)		—		1
Cross-currency interest rate swaps (included component) (1)		76		(40)
Cross-currency interest rate swaps (excluded component) (3)		(2)		24
Total		$	130	$	(40)
Amount of gain or (loss) recognized in earnings:
		Three Months Ended March 31,
	Location of gain (loss)	2024		2023
Foreign currency forward contracts (excluded component) (2)	Interest expense	$	2	$	—
Cross-currency interest rate swaps (excluded component) (3)	Interest expense	8		12
Total		$	10	$	12

(1)Included component represents foreign exchange spot rates.

(2)Excluded component represents foreign currency forward points.

(3)Excluded component represents cross-currency basis spread and interest rates.

Cash Flow Hedges

Foreign Currency Forward and Option Contracts. We hedge our foreign currency transaction exposure for forecasted revenues and expenses in our EMEA region between the U.S. Dollar and foreign currencies, primarily the British Pound and the Euro. The foreign currency forward and option contracts that we use to hedge this exposure are designated as cash flow hedges.

We enter into intercompany hedging instruments ("intercompany derivatives") with our wholly-owned subsidiaries in order to hedge certain forecasted revenues and expenses denominated in currencies other than the U.S. Dollar. Simultaneously, we enter into derivative contracts with unrelated third parties to externally hedge the net exposure created by such intercompany derivatives.

As of March 31, 2024, our foreign currency cash flow hedge instruments had maturity dates ranging from April 2024 to December 2025 and we had a net gain of $10 million recorded within accumulated other comprehensive income (loss) to be reclassified to revenues and expenses for cash flow hedges that will mature in the next 12 months. As of December 31, 2023, our foreign currency cash flow hedge instruments had maturity dates ranging from January 2024 to December 2025 and we had a net loss of $7 million recorded within accumulated other comprehensive income (loss) to be reclassified to revenues and expenses for cash flow hedges that will mature in the next 12 months.

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(Unaudited)

Cross-currency Interest Rate Swaps. We also use cross-currency swaps, which are designated as cash flow hedges, to manage the foreign currency exposure associated with a portion of our foreign currency-denominated debt.

Interest Rate Locks. We hedge the interest rate exposure created by anticipated fixed rate debt issuances through the use of treasury locks and swap locks (collectively, interest rate locks), which are designated as cash flow hedges. As of both March 31, 2024 and December 31, 2023, we had no interest rate locks outstanding. When interest rate locks are settled, any gain or loss from the transactions is deferred and included as a component of other comprehensive income (loss) and is amortized to interest expense over the term of the forecasted hedged transaction which is equivalent to the term of the interest rate locks. As of both March 31, 2024 and December 31, 2023, we had an insignificant net gain recorded within accumulated other comprehensive income (loss) to be reclassified to interest expense in the next 12 months for interest rate locks.

The effect of cash flow hedges on accumulated other comprehensive income and the condensed consolidated statements of operations for the three months ended March 31, 2024 and 2023 was as follows (in millions):

Amount of gain or (loss) recognized in accumulated other comprehensive income:
		Three Months Ended March 31,
		2024		2023
Foreign currency forward and option contracts (included component) (1)		$	27	$	(13)
Cross-currency interest rate swaps		(2)		(2)
Interest rate locks		1		(4)
Total		$	26	$	(19)
Amount of gain or (loss) reclassified from accumulated other comprehensive income to income:
		Three Months Ended March 31,
	Location of gain (loss)	2024		2023
Foreign currency forward contracts	Revenues	$	(3)	$	12
Foreign currency forward contracts	Costs and operating expenses	2		(3)
Total		$	(1)	$	9

(1)Included component represents foreign exchange spot rates.

Derivatives Not Designated as Hedging Instruments

Embedded Derivatives. As described above, certain of our customer agreements that are priced in currencies different from the functional or local currencies of the parties involved are deemed to have foreign currency forward contracts embedded in them.

Economic Hedges of Embedded Derivatives. We use foreign currency forward contracts to manage the foreign exchange risk associated with our customer agreements that are priced in currencies different from the functional or local currencies of the parties involved ("economic hedges of embedded derivatives"). Foreign currency forward contracts represent agreements to exchange the currency of one country for the currency of another country at an agreed-upon price on an agreed-upon settlement date.

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(Unaudited)

Foreign Currency Forward Contracts. We also use foreign currency forward contracts to manage the foreign exchange risk associated with certain foreign currency-denominated monetary assets and liabilities. As a result of foreign currency fluctuations, the U.S. Dollar equivalent values of our foreign currency-denominated monetary assets and liabilities change. Gains and losses on these contracts are included in other income (expense), on a net basis, along with the foreign currency gains and losses of the related foreign currency-denominated monetary assets and liabilities associated with these foreign currency forward contracts.

Cross-currency Interest Rate Swaps. We may, from time to time, elect to de-designate a portion of our cross-currency interest rate swaps previously designated as net investment hedges. Gains and losses subsequent to the de-designation will be recognized in earnings to offset remeasurement gains and losses from foreign currency monetary assets and liabilities.

The following table presents the effect of derivatives not designated as hedging instruments in our condensed consolidated statements of operations (in millions):

Amount of gain or (loss) recognized in earnings:
		Three Months Ended March 31,
	Location of gain (loss)	2024		2023
Foreign currency forward contracts	Other income (expense)	76		11
Total		$	76	$	11

Notional Amounts of Derivative Instruments

The notional amounts of our outstanding derivative instruments as of March 31, 2024 and December 31, 2023 were as follows (in millions):

	March 31, 2024		December 31, 2023
Designated as hedging instruments:
Net investment hedges
Foreign currency forward contracts	$	1,004	$	887
Cross-currency interest rate swaps	3,121		3,121
Cash flow hedges
Foreign currency forward and option contracts	1,187		1,154
Cross-currency interest rate swaps	280		280
Total designated as hedging	5,592		5,442
Not designated as hedging instruments:
Foreign currency forward contracts	2,736		3,053
Cross-currency interest rate swaps	661		1,061
Total not designated as hedging	3,397		4,114
Total Derivatives	$	8,989	$	9,556

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(Unaudited)

Fair Value of Derivative Instruments

The following table presents the fair value of derivative instruments recognized in our condensed consolidated balance sheets, excluding accrued interest, as of March 31, 2024 and December 31, 2023 (in millions):

	March 31, 2024				December 31, 2023
	Assets (1)		Liabilities (2)		Assets (1)		Liabilities (2)
Designated as hedging instruments:
Net investment hedges
Foreign currency forward contracts	$	19	$	2	$	3	$	17
Cross-currency interest rate swaps	209		—		132		—
Cash flow hedges
Foreign currency forward and option contracts	15		2		2		14
Cross-currency interest rate swaps	33		—		36		—
Total designated as hedging	276		4		173		31
Not designated as hedging instruments:
Foreign currency forward contracts	23		3		4		70
Cross-currency interest rate swaps	79		13		80		—
Total not designated as hedging	102		16		84		70
Total Derivatives	$	378	$	20	$	257	$	101

(1)As presented in our condensed consolidated balance sheets within other current assets and other assets.

(2)As presented in our condensed consolidated balance sheets within other current liabilities and other liabilities.

Offsetting Derivative Assets and Liabilities

We enter into master netting agreements with our counterparties for transactions other than embedded derivatives to mitigate credit risk exposure to any single counterparty. Master netting agreements allow for individual derivative contracts with a single counterparty to offset in the event of default. For presentation on the condensed consolidated balance sheets, we do not offset fair value amounts recognized for derivative instruments or the accrued interest related to cross-currency interest rate swaps under master netting arrangements. The following table presents information related to these offsetting arrangements, inclusive of accrued interest, as of March 31, 2024 and December 31, 2023 (in millions):

	Gross Amounts Offset in Condensed Consolidated Balance Sheets
	Gross Amounts		Gross Amounts Offset in the Balance Sheet		Net Amounts		Gross Amounts not Offset in the Balance Sheet		Net
March 31, 2024
Derivative assets	$	394	$	—	$	394	$	(29)	$	365
Derivative liabilities	31		—		31		(29)		2
December 31, 2023
Derivative assets	$	282	$	—	$	282	$	(56)	$	226
Derivative liabilities	112		—		112		(56)		56

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(Unaudited)

6.    Fair Value Measurements

We perform fair value measurements in accordance with ASC 820, Fair Value Measurement, which establishes three levels of inputs that we use to measure fair value:

•Level 1: quoted prices in active markets for identical assets or liabilities.

•Level 2: observable inputs (e.g., spot rates and other data from the third-party pricing vendors for our derivative instruments, credit rating and current prices of similar debt instruments that are publicly traded for our debt instruments) other than quoted market prices included within Level 1 that are observable, either directly or indirectly, for the assets or liabilities.

•Level 3: unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or liabilities.

The fair value of certain financial assets and liabilities as of March 31, 2024 and December 31, 2023 were as follows (in millions):

	March 31, 2024						December 31, 2023
	Fair Value		Fair Value Measurement Using				Fair Value		Fair Value Measurement Using
			Level 1		Level 2				Level 1		Level 2
Assets:
Money market and deposit accounts (1)	$	1,006	$	1,006	$	—	$	1,604	$	1,604	$	—
Derivative instruments (2)	378		—		378		257		—		257
Total	$	1,384	$	1,006	$	378	$	1,861	$	1,604	$	257
Liabilities:
Derivative instruments (2)	$	20	$	—	$	20	$	101	$	—	$	101
Mortgage and loans payable (3)	672		—		672		684		—		684
Senior notes (3)	11,454		10,935		519		11,740		11,166		574
Total	$	12,146	$	10,935	$	1,211	$	12,525	$	11,166	$	1,359

(1)Amounts are included within cash and cash equivalents in the condensed consolidated balance sheets, and are measured at fair value.

(2)Amounts are included within other current assets, other assets, other current liabilities and other liabilities in the condensed consolidated balance sheets, and are measured at fair value. Refer to Note 5.

(3)Amounts include current and non-current portions and are measured at amortized cost. Refer to Note 8.

We did not have any significant Level 3 financial assets or financial liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023.

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(Unaudited)

7.    Leases

There were no significant lease transactions during the three months ended March 31, 2024.

Lease Expenses

The components of lease expenses are as follows (in millions):

	Three Months Ended March 31,
	2024		2023
Finance lease cost
Amortization of right-of-use assets (1)	$	48	$	43
Interest on lease liabilities	28		28
Total finance lease cost	76		71
Operating lease cost	56		53
Variable lease cost	16		13
Total lease cost	$	148	$	137

(1)    Amortization of right-of-use assets is included within depreciation expense, and is recorded within cost of revenues, sales and marketing and general and administrative expenses in the condensed consolidated statements of operations.

Other Information

Other information related to leases is as follows (in millions, except years and percent):

	Three Months Ended March 31,
	2024			2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	26		$	27
Operating cash flows from operating leases	50			52
Financing cash flows from finance leases	31			36
Right-of-use assets obtained in exchange for lease obligations: (1)
Finance leases	$	30		$	—
Operating leases	4			5
	March 31, 2024			December 31, 2023
Weighted-average remaining lease term - finance leases (2)	14 years			14 years
Weighted-average remaining lease term - operating leases (2)	12 years			12 years
Weighted-average discount rate - finance leases	6		%	6		%
Weighted-average discount rate - operating leases	5		%	5		%
Finance lease right-of-use assets (3)	$	2,136		$	2,184

(1) Represents all non-cash changes in right-of-use assets.

(2) Includes lease renewal options that are reasonably certain to be exercised.

(3) As of March 31, 2024 and December 31, 2023, we recorded accumulated amortization of finance lease right-of-use assets of $889 million and $870 million, respectively. Finance lease assets are recorded within property, plant and equipment, net on the condensed consolidated balance sheets.

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(Unaudited)

Maturities of Lease Liabilities

Maturities of lease liabilities as of March 31, 2024 are as follows (in millions):

	Operating Leases		Finance Leases		Total
2024 (9 months remaining)	$	143	$	188	$	331
2025	203		281		484
2026	195		245		440
2027	176		250		426
2028	150		238		388
Thereafter	1,075		2,077		3,152
Total lease payments	1,942		3,279		5,221
Less imputed interest	(526)		(1,056)		(1,582)
Total	$	1,416	$	2,223	$	3,639

We entered into agreements with various landlords primarily to lease data center spaces and ground leases which have not yet commenced as of March 31, 2024. These leases will commence between year 2024 and 2026, with lease terms of 3 to 33 years and total lease commitments of approximately $533 million.

8.    Debt Facilities

Mortgage and Loans Payable

As of March 31, 2024 and December 31, 2023, our mortgage and loans payable consisted of the following (in millions):

	March 31, 2024		December 31, 2023
Term loans	$	635	$	643
Mortgage payable and other loans payable	27		29
	662		672
Less amount representing unamortized debt issuance costs and debt discounts	(1)		(1)
	661		671
Less current portion	(7)		(8)
Total	$	654	$	663

Senior Credit Facility and Refinancing

In 2022, we entered into a credit agreement (the "2022 Credit Agreement") with a group of lenders for a senior unsecured credit facility, comprised of a $4.0 billion senior unsecured multicurrency revolving credit facility (the "2022 Revolving Facility") and a £500 million senior unsecured term loan facility (the "2022 Term Loan Facility" and, together with the 2022 Revolving Facility, collectively, the "2022 Credit Facilities"). The total debt issuance costs for the 2022 Revolving Facility and 2022 Term Loan Facility are $7 million and $1 million, respectively. We borrowed the full £500 million available under the 2022 Term Loan Facility, or approximately $677 million at the exchange rate in effect on that date.

The 2022 Credit Facilities have a maturity date of January 7, 2027. We may borrow, repay and reborrow amounts under the 2022 Revolving Facility until the Maturity Date, at which time all amounts outstanding under the 2022 Revolving Facility must be repaid in full. The term loan made under the 2022 Term Loan Facility has no scheduled principal amortization and must be repaid in full on the maturity date. The 2022 Revolving Credit Facility provides for extensions of credit in U.S. Dollars as well as certain other foreign currencies. Borrowings under the 2022 Revolving Facility bear interest at a rate based on the daily Secured Overnight Financing Rate ("SOFR"), term SOFR, an alternative currency daily rate, or an alternative currency term rate plus a spread adjustment, plus a margin that can vary from 0.555% to 1.200%. Borrowings under the 2022 Term Loan Facility bear interest at a rate

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(Unaudited)

based on the daily Sterling Overnight Index Average ("SONIA"), plus a spread adjustment, plus a margin that can vary from 0.625% to 1.450%. We are also required to pay a quarterly letter of credit fee on the face amount of each letter of credit, which fee is based on the same margin that applies from time to time to SOFR-indexed borrowings under the revolving credit line. The margin is dependent on either our consolidated net leverage ratio or our credit ratings. We are also required to pay a quarterly facility fee ranging from 0.07% to 0.25% per annum. The 2022 Credit Agreement contains customary covenants, including financial ratio covenants that are required to be maintained as of each quarter end.

As of March 31, 2024 and December 31, 2023, the total amounts outstanding under the 2022 Term Loan Facility, net of debt issuance costs, were $630 million and $636 million, respectively.

As of March 31, 2024, we had 45 irrevocable letters of credit totaling $82 million issued and outstanding under the 2022 Revolving Facility, with approximately $3.9 billion remaining available to borrow under the 2022 Revolving Facility. As of both March 31, 2024 and December 31, 2023, unamortized debt issuance costs for the 2022 Revolving Facility of $5 million were presented in other assets in the condensed consolidated balance sheets.

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(Unaudited)

Senior Notes

As of March 31, 2024 and December 31, 2023, our senior notes consisted of the following (in millions):

	March 31, 2024				December 31, 2023
	Amount		Effective Rate		Amount		Effective Rate
2.625% Senior Notes due 2024	$	1,000	2.79	%	$	1,000	2.79	%
1.250% Senior Notes due 2025	500		1.46	%	500		1.46	%
1.000% Senior Notes due 2025	700		1.18	%	700		1.18	%
2.900% Senior Notes due 2026	600		3.04	%	600		3.04	%
1.450% Senior Notes due 2026	700		1.64	%	700		1.64	%
0.250% Euro Senior Notes due 2027	540		0.45	%	552		0.45	%
1.800% Senior Notes due 2027	500		1.96	%	500		1.96	%
1.550% Senior Notes due 2028	650		1.67	%	650		1.67	%
2.000% Senior Notes due 2028	400		2.21	%	400		2.21	%
2.875% Swiss Franc Senior Notes due 2028	333		3.05	%	357		3.05	%
3.200% Senior Notes due 2029	1,200		3.30	%	1,200		3.30	%
2.150% Senior Notes due 2030	1,100		2.27	%	1,100		2.27	%
2.500% Senior Notes due 2031	1,000		2.65	%	1,000		2.65	%
3.900% Senior Notes due 2032	1,200		4.07	%	1,200		4.07	%
1.000% Euro Senior Notes due 2033	646		1.18	%	662		1.18	%
2.000% Japanese Yen Senior Notes Series A due 2035	249		2.07	%	267		2.07	%
2.130% Japanese Yen Senior Notes Series C due 2035	98		2.20	%	105		2.20	%
2.370% Japanese Yen Senior Notes Series B due 2043	68		2.42	%	72		2.42	%
2.570% Japanese Yen Senior Notes Series D due 2043	30		2.62	%	32		2.62	%
2.570% Japanese Yen Senior Notes Series E due 2043	66		2.62	%	71		2.62	%
3.000% Senior Notes due 2050	500		3.09	%	500		3.09	%
2.950% Senior Notes due 2051	500		3.00	%	500		3.00	%
3.400% Senior Notes due 2052	500		3.50	%	500		3.50	%
	13,080				13,168
Less amount representing unamortized debt issuance costs and debt discounts	(103)				(108)
	12,977				13,060
Less current portion	(999)				(998)
Total	$	11,978			$	12,062

2.000% Japanese Yen Senior Notes Series A due 2035, 2.370% Japanese Yen Senior Notes Series B due 2043, 2.130% Japanese Yen Senior Notes Series C due 2035, 2.570% Japanese Yen Senior Notes Series D due 2043 and 2.570% Japanese Yen Senior Notes Series E due 2043 (collectively, the "Japanese Yen Senior Notes")

On February 16, 2023, we issued ¥10.0 billion, or approximately $75 million in U.S. dollars, at the exchange rate in effect on that date, aggregate principal amount of 2.570% senior notes due March 8, 2043.

On March 8, 2023, and at the exchange rate in effect on that date, we issued ¥37.7 billion, or approximately $275 million in U.S. dollars, aggregate principal amount of 2.000% senior notes due March 8, 2035, ¥10.2 billion, or approximately $75 million in U.S. dollars, aggregate principal amount of 2.370% senior notes due March 8, 2043, ¥14.8 billion, or approximately $108 million in U.S. dollars, aggregate principal amount of 2.130% senior notes due March 8, 2035 and ¥4.6 billion, or approximately $34 million in U.S. dollars, aggregate principal amount of 2.570% senior notes due March 8, 2043.

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(Unaudited)

Interest on the notes is payable semi-annually in arrears on March 8 and September 8 of each year, commencing on September 8, 2023. Total debt issuance costs related to the Japanese Yen Senior Notes were $4 million.

2.875% Swiss Franc Senior Notes due 2028

On September 12, 2023, we issued CHF300 million, or approximately $337 million in U.S. dollars, at the exchange rate in effect on that date, aggregate principal amount of 2.875% senior notes due September 12, 2028 (the "2028 CHF Notes"). Interest on the notes is payable annually in arrears on September 12 of each year, commencing on September 12, 2024. Total debt issuance costs related to the 2028 CHF Notes were $3 million.

Maturities of Debt Instruments

The following table sets forth maturities of our debt, including mortgage and loans payable, and senior notes, gross of debt issuance costs and debt discounts, as of March 31, 2024 (in millions):

Years ending:
2024 (9 months remaining)	$	1,005
2025	1,206
2026	1,306
2027	1,675
2028	1,387
Thereafter	7,163
Total	$	13,742

Interest Charges

The following table sets forth total interest costs incurred, and total interest costs capitalized for the periods presented (in millions):

	Three Months Ended March 31,
	2024		2023
Interest expense	$	104	$	97
Interest capitalized	9		6
Interest charges incurred	$	113	$	103

Total interest paid in cash, net of capitalized interest, during the three months ended March 31, 2024 and 2023 was $92 million and $98 million, respectively.

9.    Commitments and Contingencies

Purchase Commitments

As a result of our various IBX data center expansion projects, as of March 31, 2024, we were contractually committed for approximately $2.1 billion of unaccrued capital expenditures, primarily for IBX infrastructure equipment not yet delivered and labor not yet provided, in connection with the work necessary to open these IBX data centers and make them available to our customers for installation. We also had numerous other, non-capital purchase commitments in place as of March 31, 2024, such as commitments to purchase power in select locations through the remainder of 2024 and thereafter, and other open purchase orders for goods, or services to be delivered or provided during the remainder of 2024 and thereafter. Such other miscellaneous purchase commitments totaled approximately $1.7 billion as of March 31, 2024. For further information on our equity method investments contribution commitments and lease commitments, see Note 4 and Note 7, respectively, above.

Contingent Liabilities

We estimate our exposure on certain liabilities, such as indirect and property taxes, based on the best information available at the time of determination. With respect to real and personal property taxes, we record what

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we can reasonably estimate based on prior payment history, assessed value by the assessor's office, current landlord estimates or estimates based on current or changing fixed asset values in each specific municipality, as applicable. However, there are circumstances beyond our control whereby the underlying value of the property or basis for which the tax is calculated on the property may change, such as a landlord selling the underlying property of one of our IBX data center leases or a municipality changing the assessment value in a jurisdiction and, as a result, our property tax obligations may vary from period to period. Based upon the most current facts and circumstances, we make the necessary property tax accruals for each of our reporting periods. However, revisions in our estimates of the potential or actual liability could materially impact our financial position, results of operations or cash flows.

Our indirect and property tax filings in various jurisdictions are subject to examination by local tax authorities. Although we believe that we have adequately assessed and accounted for our potential tax liabilities, and that our tax estimates are reasonable, there can be no certainty that additional taxes will not be due upon audit of our tax returns or as a result of further changes to the tax laws and interpretations thereof. For example, we are currently undergoing several indirect tax audits and appealing tentative assessments in Brazil. The final settlement of the audits and the outcomes of the appeals are uncertain and may not be resolved in our favor. We regularly assess the likelihood of adverse outcomes resulting from these examinations and appeals that would affect the adequacy of our tax accruals for each of the reporting periods. If any issues arising from the tax examinations and appeals are resolved in a manner inconsistent with our expectations, the revision of the estimates of the potential or actual liabilities could materially impact our financial position, results of operations, or cash flows.

From time to time, we may have certain contingent liabilities that arise in the ordinary course of our business activities. Contingent liabilities are accrued when it is probable that future expenditures will be made and such expenditures can be reasonably estimated.

On March 20, 2024, the Company received a subpoena from the U.S. Attorney’s Office for the Northern District of California. On April 30, 2024, the Company received a subpoena from the Securities and Exchange Commission. The Company is cooperating fully with both government agencies.

On May 2, 2024, a putative stockholder class action was filed against the Company and certain of our officers in the United States District Court for the Northern District of California. The named plaintiff alleges violations of Section 10(b) of the Exchange Act and Securities and Exchange Commission Rule 10b-5, and Section 20(a) of the Exchange Act, on the basis that the defendants allegedly made false and misleading statements about our business, results, internal controls, and accounting practices between May 3, 2019 and March 24, 2024. The lawsuit seeks, among other relief, a determination that the alleged claims may be asserted on a class-wide basis, unspecified damages, attorneys' fees, other expenses and costs. We intend to defend the lawsuit.

These matters are subject to uncertainties, and we cannot predict the outcome, nor reasonably estimate a range of loss or penalties, if any, relating to these matters.

In the opinion of management, there are no other pending claims for which the outcome is expected to result in a material adverse effect in the financial position, results of operations or cash flows.

Employment Agreements

We have entered into a severance agreement with certain of our executive officers that provides for a severance payment equal to 100% of the executive officer's annual base salary and maximum bonus in the event his or her employment is terminated for any reason other than cause or he or she voluntarily resigns under certain circumstances as described in the agreement, or 200% of the executive officer's annual base salary and maximum bonus in the event this occurs after a change-in-control of our company. For certain other executive officers, these benefits are only triggered after a change-in-control of our company, in which case the officer is entitled to 200% of the executive officer's annual base salary and maximum bonus. In addition, under these agreements, the executive officer is entitled to the payment of his or her monthly health care premiums under the Consolidated Omnibus Budget Reconciliation Act for up to 24 months.

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Indemnification and Guarantor Arrangements

As permitted under Delaware law, we have agreements whereby we indemnify our officers and directors for certain events or occurrences while the officer or director is, or was serving, at our request in such capacity. The term of the indemnification period is for the officer's or director's lifetime. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, in the event of a legal action, we have purchased insurance that could limit our exposure, depending upon the details of the claim and the coverage provided. As a result, our estimated fair value of these indemnification agreements is minimal. We have no liabilities recorded for these agreements as of March 31, 2024.

We enter into standard indemnification agreements in the ordinary course of business. Pursuant to these agreements, we may agree to indemnify, hold harmless, and reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally a business partner or a customer, in connection with matters such as any U.S. patent, or any copyright or other intellectual property infringement claim by any third party with respect to our offerings; a breach of confidentiality obligations and certain other contractual warranties; our gross negligence, willful misconduct, fraud, misrepresentation, or violation of law; and/or if we cause tangible property damage, personal injury or death. The term of any such indemnification agreement is generally perpetual after execution of the agreement. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, we have never incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. In addition, in the event of a legal action, we have purchased insurance that could limit our exposure, depending upon the details of the claim and the coverage provided. As a result, our estimated fair value of these agreements is minimal. We do not have significant liabilities recorded for these agreements as of March 31, 2024.

We enter into arrangements with certain business partners, whereby the business partner agrees to provide services as a subcontractor for our installations. Accordingly, we enter into standard indemnification agreements with our customers, whereby we indemnify them for certain acts, such as personal property damage, by our subcontractors. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, we have never incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. In addition, in the event of a legal action, we have purchased insurance that could limit our exposure, depending upon the details of the claim and the coverage provided. As a result, our estimated fair value of these agreements is minimal. We do not have significant liabilities recorded for these agreements as of March 31, 2024.

We have service level commitment obligations to certain of our customers. As a result, service interruptions or significant equipment damage in our IBX data centers, whether or not within our control, could result in obligations to these customers. While we have purchased insurance that could limit our exposure, our liability insurance may not be adequate to cover those expenses. In addition, any loss of service, equipment damage or inability to meet our service level commitment obligations could reduce the confidence our customers have in us, and could consequently impair our ability to obtain and retain customers, which would adversely affect both our ability to generate revenues and our operating results. We generally have the ability to determine such service level credits prior to the associated revenue being recognized. We do not have significant liabilities in connection with service level credits as of March 31, 2024.

Concurrent with the closing of the EMEA 2 Joint Venture, the EMEA 2 Joint Venture entered into credit facility agreements with a group of lenders under which it could borrow up to approximately $1.4 billion in total at the exchange rate in effect on March 31, 2024, with such facilities maturing in 2025 and 2026. In connection with our 20% equity investment in the EMEA 2 Joint Venture, we provided the lenders with guarantees covering 20% of all payments of principal and interest due and payable by the EMEA 2 Joint Venture under these credit facilities, up to a limit of $295 million in total at the exchange rate in effect on March 31, 2024. As of March 31, 2024, the maximum potential amount of our future payments under these guarantees was approximately $205 million, at the exchange rates in effect on that date. We and our co-investor entered into an ancillary agreement to allocate funding under the credit facility agreement for use by our AMER 1 Joint Venture. As of March 31, 2024, $9 million of the guarantees related to the AMER 1 Joint Venture. Our estimated fair value of these guarantees is minimal as the likelihood of making a payout under the guarantees is remote.

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10.    Stockholders' Equity

Stockholders' Equity Rollforward

The following tables provide a rollforward of our stockholders' equity for the three months ended March 31, 2024 and 2023 ($ in millions except per share data; share data in thousands):

	Common Stock			Treasury Stock			Additional Paid-in Capital		Accumulated Dividends		AOCI (Loss)		Retained Earnings		Total Common Stockholders' Equity
	Shares	Amount		Shares	Amount
Balance as of December 31, 2023	94,630	$	—	(151)	$	(56)	$	18,596	$	(8,695)	$	(1,290)	$	3,934	$	12,489
Net income	—	—		—	—		—		—		—		231		231
Other comprehensive loss	—	—		—	—		—		—		(208)		—		(208)
Issuance of common stock and release of treasury stock for employee equity awards	407	—		18	6		42		—		—		—		48
Dividend distribution on common stock, $4.26 per share	—	—		—	—		—		(402)		—		—		(402)
Settlement of accrued dividends on vested equity awards	—	—		—	—		—		(1)		—		—		(1)
Accrued dividends on unvested equity awards	—	—		—	—		—		1		—		—		1
Stock-based compensation, net of estimated forfeitures	—	—		—	—		141		—		—		—		141
Balance as of March 31, 2024	95,037	$	—	(133)	$	(50)	$	18,779	$	(9,097)	$	(1,498)	$	4,165	$	12,299

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	Common Stock			Treasury Stock			Additional Paid-in Capital		Accumulated Dividends		AOCI (Loss)		Retained Earnings		Total Common Stockholders' Equity
	Shares	Amount		Shares	Amount
Balance as of December 31, 2022	92,814	$	—	(193)	$	(72)	$	17,320	$	(7,318)	$	(1,389)	$	2,965	$	11,506
Net income	—	—		—	—		—		—		—		259		259
Other comprehensive income	—	—		—	—		—		—		104		—		104
Issuance of common stock and release of treasury stock for employee equity awards	420	—		16	6		38		—		—		—		44
Issuance of common stock under ATM Program	458	—		—	—		301		—		—		—		301
Dividend distribution on common stock, $3.41 per share	—	—		—	—		—		(319)