Acquisition (Tables)

6 Months Ended

Jun. 30, 2021

The preliminary allocation of the purchase price to the assets acquired and liabilities assumed based on preliminary estimates of fair value at the acquisition date is as follows (in thousands):


Cash and cash equivalents	$	4,486
Restricted cash	78
Accounts receivable	1,461
Prepaid expenses	2,080
Property and equipment	185,842
Operating lease right-of-use assets(1)	4,405
Goodwill	108,741
Customer relationships(2)	125,000
Other assets	10
Total assets acquired	$	432,103

Accounts payable	$	(1,437)
Accrued salaries and benefits	(561)
Accrued expenses and other	(1,532)
Accrued construction payables	(1,558)
Customer deposits	(2,447)
Operating lease liability, current portion	(261)
Operating lease liability	(4,144)
Total liabilities assumed	$	(11,940)
Net assets acquired	$	420,163

________________________________________

(1)Included within other assets on the consolidated balance sheet.

(2)Included within intangible assets, net on the consolidated balance sheet with an amortization period of 20 years.

Estimated fair value of property and equipment acquired consists of the following at the acquisition date (in thousands):


Land and land improvements	$	21,247
Buildings, building improvements, and leasehold improvements	74,596

Data center equipment	82,320

Core network equipment	36

Computer equipment, furniture and fixtures	2,642
Finance lease right-of-use assets	3,000
Construction in progress	2,001
Total property and equipment	$	185,842

Schedule of Supplemental Pro Forma Results

Supplemental pro forma results of operations for the Company, assuming the acquisition had occurred on January 1, 2020, are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(in thousands)
Revenue	$	150,568	$	139,721	$	293,013	$	280,571
Net income (loss) attributable to Switch, Inc.	$	4,310	$	3,173	$	13,853	$	(1,385)

Schedule of Unobservable Inputs Categorized As Level 3

The following summarizes information for unobservable inputs categorized as Level 3:


Long-term revenue growth rate	2.0	%
Attrition rate	6.6	%
Discount rate	10.0	%