Item 16. Form 10-K Summary

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Item 16. Form 10-K Summary

Not applicable.

Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Annual Report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized.


		EQUINIX, INC. (Registrant)

February 12, 2025	By	/s/ ADAIRE FOX-MARTIN
		Adaire Fox-Martin
		Chief Executive Officer and President

Power of Attorney

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Adaire Fox-Martin or Keith D. Taylor, or either of them, each with the power of substitution, their attorney-in-fact, to sign any amendments to this Annual Report on Form 10-K (including post-effective amendments), and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, hereby ratifying and confirming all that each of said attorneys-in-fact, or their substitute or substitutes, may do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


Signature	Title	Date
/s/ ADAIRE FOX-MARTIN	Chief Executive Officer and President (Principal Executive Officer)	February 12, 2025
Adaire Fox-Martin
/s/ KEITH D. TAYLOR	Chief Financial Officer (Principal Financial Officer)	February 12, 2025
Keith D. Taylor
/s/ SIMON MILLER	Chief Accounting Officer (Principal Accounting Officer)	February 12, 2025
Simon Miller
/s/ CHARLES MEYERS	Executive Chairman	February 12, 2025
Charles Meyers
/s/ NANCI CALDWELL	Director	February 12, 2025
Nanci Caldwell
/s/ GARY F. HROMADKO	Director	February 12, 2025
Gary F. Hromadko
/s/ THOMAS OLINGER	Director	February 12, 2025
Thomas Olinger
/s/ CHRISTOPHER B. PAISLEY	Director	February 12, 2025
Christopher B. Paisley
/s/ JEETU PATEL	Director	February 12, 2025
Jeetu Patel
/s/ SANDRA RIVERA	Director	February 12, 2025
Sandra Rivera
/s/ FIDELMA RUSSO	Director	February 12, 2025
Fidelma Russo

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholders of Equinix, Inc.

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of Equinix, Inc. and its subsidiaries (the “Company”) as of December 31, 2024 and December 31, 2023, and the related consolidated statements of operations, of comprehensive income (loss), of stockholders' equity and other comprehensive income (loss) and of cash flows for each of the three years in the period ended December 31, 2024, including the related notes and financial statement schedule listed in the index appearing under Item 15(a)(2) (collectively referred to as the “consolidated financial statements”). We also have audited the Company's internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management's Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company's consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable

F-1

assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Revenue Recognition – Colocation and Interconnection Revenues

As described in Notes 1 and 18 to the consolidated financial statements, the Company’s total recurring revenues for the year ended December 31, 2024 were $8,184 million, of which a majority relates to $6,058 million of colocation revenues and $1,519 million of interconnection revenues. Colocation and interconnection revenues are recurring revenue streams that are generally billed monthly and recognized ratably over the term of the contract. Revenues are recognized when control of these products and services is transferred to the Company’s customers, in an amount that reflects the consideration management expects to be entitled to in exchange for the products and services.

The principal consideration for our determination that performing procedures relating to colocation and interconnection revenue recognition is a critical audit matter is a high degree of auditor effort in performing procedures related to the Company’s revenue recognition.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the revenue recognition process, including controls over the input of customer data and the recording of revenue. These procedures also included, among others, (i) testing revenue recognized for a sample of colocation and interconnection revenue transactions by obtaining and inspecting source documents, such as master service agreements, invoices, cash receipts and sales orders, and (ii) confirming a sample of outstanding customer invoice balances as of December 31, 2024 and, for confirmations not returned, obtaining and inspecting source documents, such as invoices and subsequent cash receipts.

/s/ PricewaterhouseCoopers LLP

San Jose, California

February 12, 2025

We have served as the Company's auditor since 2000.

F-2

EQUINIX, INC.

Consolidated Balance Sheets

(in millions, except share and per share data)


	December 31,
	2024		2023
Assets
Current assets:
Cash and cash equivalents	$	3,081	$	2,096
Short-term investments	527		—
Accounts receivable, net of allowance of $19 and $17	949		1,004
Other current assets	890		468

Total current assets	5,447		3,568

Property, plant and equipment, net	19,249		18,601
Operating lease right-of-use assets	1,419		1,449
Goodwill	5,504		5,737
Intangible assets, net	1,417		1,705
Other assets	2,049		1,591
Total assets	$	35,085	$	32,651
Liabilities, Redeemable Non-Controlling Interest and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses	$	1,193	$	1,187
Accrued property, plant and equipment	387		398
Current portion of operating lease liabilities	144		131
Current portion of finance lease liabilities	189		138
Current portion of mortgage and loans payable	5		8
Current portion of senior notes	1,199		998
Other current liabilities	232		302

Total current liabilities	3,349		3,162
Operating lease liabilities, less current portion	1,331		1,331
Finance lease liabilities, less current portion	2,086		2,123
Mortgage and loans payable, less current portion	644		663
Senior notes, less current portion	13,363		12,062
Other liabilities	760		796
Total liabilities	21,533		20,137
Commitments and contingencies (Note 14)
Redeemable non-controlling interest	25		25
Common stockholders' equity (shares in thousands):
Common stock, $0.001 par value per share: 300,000 shares authorized; 97,390 issued and 97,287 outstanding in 2024 and 94,630 issued and 94,479 outstanding in 2023	—		—
Additional paid-in capital	20,895		18,596
Treasury stock, at cost; 103 shares in 2024 and 151 shares in 2023	(39)		(56)
Accumulated dividends	(10,342)		(8,695)
Accumulated other comprehensive loss	(1,735)		(1,290)
Retained earnings	4,749		3,934
Total common stockholders' equity	13,528		12,489
Non-controlling interests	(1)		—
Total stockholders' equity	13,527		12,489
Total liabilities, redeemable non-controlling interest and stockholders' equity	$	35,085	$	32,651

See accompanying notes to consolidated financial statements.

F-3

EQUINIX, INC.

Consolidated Statements of Operations

(in millions, except share and per share data)


	Years Ended December 31,
	2024		2023		2022
Revenues	$	8,748	$	8,188	$	7,263
Costs and operating expenses:
Cost of revenues	4,467		4,228		3,751
Sales and marketing	891		855		787
General and administrative	1,766		1,654		1,499
Restructuring charges	31		—		—
Transaction costs	50		13		22
Impairment charges	233		—		—
(Gain) loss on asset sales	(18)		(5)		4
Total costs and operating expenses	7,420		6,745		6,063
Income from operations	1,328		1,443		1,200
Interest income	137		94		36
Interest expense	(457)		(402)		(356)
Other expense	(17)		(11)		(51)
Loss on debt extinguishment	(16)		—		—
Income before income taxes	975		1,124		829
Income tax expense	(161)		(155)		(124)
Net income	814		969		705
Net loss attributable to non-controlling interests	1		—		—
Net income attributable to common stockholders	$	815	$	969	$	705

Earnings per share ("EPS") attributable to common stockholders:
Basic EPS	$	8.54	$	10.35	$	7.69
Weighted-average shares for basic EPS (in thousands)	95,457		93,615		91,569
Diluted EPS	$	8.50	$	10.31	$	7.67
Weighted-average shares for diluted EPS (in thousands)	95,827		94,009		91,828

See accompanying notes to consolidated financial statements.

F-4

EQUINIX, INC.

Consolidated Statements of Comprehensive Income (Loss)

(in millions)


	Years Ended December 31,
	2024		2023		2022
Net income	$	814	$	969	$	705
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment (“CTA”) gain (loss), net of tax effects of $0, $0 and $0	(772)		250		(770)
Net investment hedge CTA gain (loss), net of tax effects of $6, $0 and $0	295		(132)		426

Unrealized gain (loss) on cash flow hedges, net of tax effects of $(15), $5 and $2	32		(19)		40

Total other comprehensive income (loss), net of tax	(445)		99		(304)
Comprehensive income, net of tax	369		1,068		401
Net loss attributable to non-controlling interests	1		—		—

Comprehensive income attributable to common stockholders	$	370	$	1,068	$	401

See accompanying notes to consolidated financial statements.

F-5

EQUINIX, INC.

Consolidated Statements of Stockholders' Equity and Other Comprehensive Income (Loss)

For the Three Years Ended December 31, 2024

($ in millions except per share data; share data in thousands)


	Common stock			Treasury stock			Additional Paid-in Capital		Accumulated Dividends		AOCI (Loss)		Retained Earnings		Common Stockholders' Equity		Non-controlling Interests		Total Stockholders' Equity
	Shares	Amount		Shares	Amount
Balance as of December 31, 2021	90,873	$	—	(301)	$	(112)	$	15,985	$	(6,165)	$	(1,085)	$	2,260	$	10,883	$	—	$	10,883
Net income	—	—		—	—		—		—		—		705		705		—		705
Other comprehensive loss	—	—		—	—		—		—		(304)				(304)		—		(304)
Issuance of common stock and release of treasury stock for employee equity awards	780	—		108	40		90		—		—		—		130		—		130

Issuance of common stock under ATM Program	1,161	—		—	—		796		—		—		—		796		—		796
Dividend distribution on common stock, $12.40 per share	—	—		—	—		—		(1,137)		—		—		(1,137)		—		(1,137)
Settlement of accrued dividends on vested equity awards	—	—		—	—		—		(1)		—		—		(1)		—		(1)
Accrued dividends on unvested equity awards	—	—		—	—		—		(15)		—		—		(15)		—		(15)
Stock-based compensation, net of estimated forfeitures	—	—		—	—		449		—		—		—		449		—		449
Balance as of December 31, 2022	92,814	—		(193)	(72)		17,320		(7,318)		(1,389)		2,965		11,506		—		11,506

Net income	—	—		—	—		—		—		—		969		969		—		969
Other comprehensive income	—	—		—	—		—		—		99		—		99		—		99
Issuance of common stock and release of treasury stock for employee equity awards	793	—		42	16		74		—		—		—		90		—		90

Issuance of common stock under ATM Program	1,023	—		—	—		734		—		—		—		734		—		734
Dividend distribution on common stock, $14.49 per share	—	—		—	—		—		(1,359)		—		—		(1,359)		—		(1,359)
Settlement of accrued dividends on vested equity awards	—	—		—	—		—		(1)		—		—		(1)		—		(1)
Accrued dividends on unvested equity awards	—	—		—	—		—		(17)		—		—		(17)		—		(17)
Stock-based compensation, net of estimated forfeitures	—	—		—	—		468		—		—		—		468		—		468

Balance as of December 31, 2023	94,630	—		(151)	(56)		18,596		(8,695)		(1,290)		3,934		12,489		—		12,489

F-6

EQUINIX INC.

Consolidated Statements of Stockholders' Equity and Other Comprehensive Income (Loss) - Continued

For the Three Years Ended December 31, 2024

($ in millions except per share data; share data in thousands)


	Common stock			Treasury stock			Additional Paid-in Capital		Accumulated Dividends		AOCI (Loss)		Retained Earnings		Common Stockholders' Equity		Non-controlling Interests		Total Stockholders' Equity
	Shares	Amount		Shares	Amount
Net income	—	—		—	—		—		—		—		815		815		(1)		814
Other comprehensive loss	—	—		—	—		—		—		(445)		—		(445)		—		(445)
Issuance of common stock and release of treasury stock for employee equity awards	792	—		48	17		76		—		—		—		93		—		93

Issuance of common stock under ATM Program	1,968	—		—	—		1,673		—		—		—		1,673		—		1,673
Dividend distribution on common stock, $17.04 per share	—	—		—	—		—		(1,624)		—		—		(1,624)		—		(1,624)
Settlement of accrued dividends on vested equity awards	—	—		—	—		—		(2)		—		—		(2)		—		(2)
Accrued dividends on unvested equity awards	—	—		—	—		—		(21)		—		—		(21)		—		(21)
Stock-based compensation, net of estimated forfeitures	—	—		—	—		546		—		—		—		546		—		546
Contribution from non-controlling interest	—	—		—	—		4		—		—		—		4		—		4
Balance as of December 31, 2024	97,390	$	—	(103)	$	(39)	$	20,895	$	(10,342)	$	(1,735)	$	4,749	$	13,528	$	(1)	$	13,527

See accompanying notes to consolidated financial statements.

F-7

EQUINIX, INC.

Consolidated Statements of Cash Flows

(in millions)


	Years Ended December 31,
	2024		2023		2022
Cash flows from operating activities:
Net income	$	814	$	969	$	705
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	1,801		1,637		1,532
Stock-based compensation	462		407		404
Amortization of intangible assets	208		208		205
Amortization of debt issuance costs and debt discounts and premiums	20		19		18
Provision for credit loss allowance	21		15		7
Impairment charges	233		—		—
(Gain) loss on asset sales	(18)		(5)		4

Loss on debt extinguishment	16		—		—
Other items	32		44		63
Changes in operating assets and liabilities:
Accounts receivable	27		(150)		(154)
Income taxes, net	(9)		4		(8)
Other assets	(445)		(146)		(52)
Operating lease right-of-use assets	150		139		149
Operating lease liabilities	(153)		(128)		(133)
Accounts payable and accrued expenses	95		161		114
Other liabilities	(5)		43		109
Net cash provided by operating activities	3,249		3,217		2,963
Cash flows from investing activities:
Purchases of equity investments	(98)		(136)		(145)
Distributions from equity investments	11		—		—
Sales of equity investments	—		—		22
Purchases of short-term investments	(520)		—		—

Business acquisitions, net of cash and restricted cash acquired	—		—		(964)
Real estate acquisitions	(337)		(384)		(248)
Purchases of other property, plant and equipment	(3,066)		(2,781)		(2,278)
Proceeds from sale of assets, net of cash transferred	247		77		250
Settlement of foreign currency hedges	83		—		—
Investment in loan receivable	(261)		—		—
Loan receivable upfront fee	4		—		—
Net cash used in investing activities	(3,937)		(3,224)		(3,363)
Cash flows from financing activities:
Proceeds from employee equity awards	91		87		82
Payment of dividends	(1,643)		(1,375)		(1,152)
Proceeds from public offering of common stock, net of issuance costs	1,673		734		796
Proceeds from senior notes, net of debt discounts	2,768		902		1,194
Proceeds from mortgage and loans payable	—		—		677
Repayment of senior notes	(1,000)		—		—
Repayments of finance lease liabilities	(140)		(149)		(134)
Contribution from non-controlling interest	4		25		—
Repayments of mortgage and loans payable	(7)		(6)		(588)

Debt issuance costs	(23)		(7)		(18)

Net cash provided by financing activities	1,723		211		857
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash	(49)		(16)		(98)
Net increase (decrease) in cash, cash equivalents and restricted cash	986		188		359
Cash, cash equivalents and restricted cash at beginning of period	2,096		1,908		1,549
Cash, cash equivalents and restricted cash at end of period	$	3,082	$	2,096	$	1,908
Supplemental cash flow information
Cash paid for taxes, net	$	185	$	153	$	140
Cash paid for interest, net of amounts capitalized	$	486	$	445	$	412


Cash and cash equivalents	$	3,081	$	2,096	$	1,906
Current portion of restricted cash included in other current assets	1		—		2

Total cash, cash equivalents, and restricted cash shown in the consolidated statement of cash flows	$	3,082	$	2,096	$	1,908

See accompanying notes to consolidated financial statements.

F-8

EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Nature of Business and Summary of Significant Accounting Policies

Nature of Business

Equinix, Inc. ("Equinix," the "Company," "we," "our," or "us") was incorporated in Delaware on June 22, 1998. Equinix provides colocation space and related offerings. Global enterprises, content providers, financial companies and network service providers rely upon Equinix's insight and expertise to safehouse and connect their most valued information assets. We operate International Business ExchangeTM ("IBX®") data centers, or IBX data centers, across the Americas, Europe, Middle East and Africa ("EMEA") and Asia-Pacific geographic regions where customers directly interconnect with a network ecosystem of partners and customers. More than 2,000 network service providers offer access to the world's internet routes inside our IBX data centers. This access to internet routes provides Equinix customers improved reliability and streamlined connectivity while significantly reducing costs by reaching a critical mass of networks within a centralized physical location. We also invest in data center joint ventures or partnerships where we perform a variety of services described in Note 5. As of December 31, 2024, we controlled and operated 246 IBX data centers in 72 markets around the world.

We have been operating as a real estate investment trust for federal income tax purposes ("REIT") effective January 1, 2015. See "Income Taxes" in Note 13 below for additional information.

Basis of Presentation

The accompanying consolidated financial statements and accompanying notes are prepared in accordance with the accounting principles generally accepted in the United States of America ("GAAP") and are presented in our reporting currency, the U.S. Dollar. The consolidated financial statements include the accounts of Equinix and its subsidiaries, including the acquisitions of:

Four data centers as well as a subsea cable and terrestrial fiber network in West Africa acquired from MainOne Cable Company ("MainOne") from April 1, 2022; and
Four data centers in Chile and a data center in Peru acquired from Empresa Nacional De Telecomunicaciones S.A. ("Entel") from May 2, 2022 and August 1, 2022, respectively.

All material intercompany accounts and transactions have been eliminated in consolidation.

Consolidation

We consolidate all entities that are wholly owned and those entities where we own less than 100% of the equity but we control the entity. We consolidate all Variable Interest Entities (“VIEs”) for which we are the primary beneficiary. A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support, or (ii) has equity investors who lack the power to direct activities that most significantly impact the economic performance of the VIE, or (iii) has equity investors who lack the obligation to absorb the excepted losses or right to receive the expected residual returns of the VIE, or (iv) substantially all activities involve an equity investor with disproportionately few voting rights. We are considered the primary beneficiary of a VIE if we have (i) the power to direct activities that most significantly impact the economic performance of the VIE and (ii) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. When determining whether we are the primary beneficiary of a VIE, we consider all relationships between us and the VIE, including management agreements and other contractual arrangements.

For the entities that are not VIEs, we first assess whether the entity is similar to a corporation or a limited partnership. We consolidate entities that are structured similar to corporations if we have a controlling financial interest (i.e. ownership of over 50% of the outstanding voting shares) unless the control does not rest with us as a majority owner. We may also consolidate a less-than-majority-owned entity if we control the board of directors which makes the significant decisions of the entity, we control the entity through contractual arrangements, or other shareholders do not have any substantive participating rights. For the entities that are structured similar to limited partnerships, we consolidate if we are the general partner and the limited partners do not hold substantive participating or kick-out rights that would preclude us from exercising the control over the entity.

F-9

EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. On an ongoing basis, we evaluate our estimates, including, but not limited to, those related to the allowance for credit losses, fair values of financial and derivative instruments, intangible assets and goodwill, assets acquired and liabilities assumed from acquisitions, useful lives of intangible assets and property, plant and equipment, leases, asset retirement obligations, other accruals, and income taxes. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable.

Cash, Cash Equivalents and Short-Term Investments

We consider all highly liquid instruments with an original maturity from the date of purchase of 3 months or less to be cash equivalents. Cash equivalents generally consist of money market mutual funds and certificates of deposit with original maturities of 3 months or less. Short-term investments generally consist of certificates of deposit with original maturities of between 3 months and 1 year. We review our investment portfolio quarterly to determine if any securities may be other-than-temporarily impaired due to increased credit risk, changes in industry or sector of a certain instrument or ratings downgrades.

Equity Method Investments

We use the equity method to account for our investments in entities for which we have the ability to exercise significant influence over their operating and financial policies, but do not control them. These include our investments in VIEs where we are not the primary beneficiary, and certain investments in other joint ventures or partnerships that are not VIEs.

Equity method investments are initially measured at cost, or at fair value when the investment represents a retained equity interest in a deconsolidated business or derecognized distinct non-financial assets. Equity investments are subsequently adjusted for cash contributions, distributions and our share of the income and losses of the investees. We record our equity method investments in other assets in the consolidated balance sheet. Our proportionate shares of the income or loss from our equity method investments are recorded in other income (expense) in the consolidated statement of operations. We use the cumulative earnings approach to determine whether distributions received from equity method investees are returns on investment and classified as operating cash inflows or returns of investment and reported as investing cash flows.

We review our investments quarterly to determine if any investments may be impaired considering both qualitative and quantitative factors that may have a significant impact on the investees' fair value or the ability of the investee to sustain an earnings capacity that would justify the carrying amount of the investment. We did not record any impairment charges related to our equity method investments for the years ended December 31, 2024, 2023 and 2022. For further information on our equity method investments, see Note 5.

Non-marketable Equity Investments

We also have investments in non-marketable equity securities, where we do not have the ability to exercise significant influence over the investees. We elected the measurement alternative under which the securities are measured at cost less impairment, if any, and adjusted for changes resulting from qualifying observable price changes. We record non-marketable equity investments in other assets in the consolidated balance sheet. The amounts were insignificant as of December 31, 2024 and 2023.

We review our non-marketable equity investments quarterly to determine if any investments may be impaired considering both qualitative and quantitative factors that may have a significant impact on the investees' fair value. We did not record any impairment charges related to our non-marketable equity investments for the years ended December 31, 2024, 2023 and 2022.

Financial Instruments and Concentration of Credit Risk

Financial instruments which potentially subject us to concentrations of credit risk consist of cash and cash equivalents, short-term investments, accounts receivable, contract assets and our loan receivable. Risks associated

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with cash and cash equivalents and short-term investments are mitigated by our investment policy, which limits our investing to only money market funds, U.S. government agency and treasury notes, government sponsored enterprise and bank money instruments rated at least A-1/P-1 Short Term Rating or A-/A3 Long Term Rating, as determined by independent credit rating agencies. Credit risk from our accounts receivable and contract assets is not considered concentrated since our customer base is widely dispersed across our three geographical regions with no single customer accounting for a significant portion of our revenues.

The credit risk associated with our loan receivable is mitigated by the fair value of collateral securing the loan. We estimate expected credit losses (“ECL”) by considering all available information relevant to assessing the collectibility of cash flows. In developing an estimate of ECL, we start with historical credit loss experience of financial assets with similar risk characteristics and adjust the historical loss information to reflect asset-specific risk characteristics as well as our expectation of current conditions and reasonable and supportable forecasts.

Property, Plant and Equipment

Property, plant and equipment are stated at our original cost or initial fair value for property, plant and equipment acquired through business combinations, net of depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. Buildings under finance leases, leasehold improvements and integral equipment at leased locations are amortized over the shorter of the lease term or the estimated useful life of the asset or improvement.

We capitalize certain internal and external costs associated with the development and purchase of internal-use software in property, plant and equipment, net on the consolidated balance sheets. This includes costs incurred in cloud computing arrangements ("CCA"), where it is both feasible and contractually permissible without significant penalty for us to take possession of the software. All other CCAs are considered service contracts, and the licensing and implementation costs incurred associated with such contracts are capitalized in other assets on the consolidated balance sheets. Capitalized internal-use software costs and capitalized implementation costs are amortized on a straight-line basis over the estimated useful lives of the software or arrangements.

Our estimated useful lives of property, plant and equipment are generally as follows:


Core systems	3	-	40 years
Buildings	12	-	60 years
Leasehold improvements	12	-	40 years
Personal Property	3	-	10 years
Capitalized internal-use software	3	-	5 years

Our construction in progress includes direct and indirect expenditures for the construction and expansion of IBX data centers and is stated at original cost. We contract out substantially all of the construction and expansion efforts of our IBX data centers to independent contractors under construction contracts. Construction in progress includes costs incurred under construction contracts including project management services, engineering and schematic design services, design development, construction services and other construction-related fees and services. In addition, we capitalize interest costs during the construction phase. Once an IBX data center or expansion project becomes operational, these capitalized costs are allocated to certain property, plant and equipment categories and are depreciated over the estimated useful lives of the underlying assets.

We review our property, plant and equipment for impairment together with lease right-of-use assets and finite-lived intangibles at the asset group level. Long-lived asset groups relating to our data centers are generally at the individual data center level. We reassess whether a change to our asset groups is necessary when we experience a significant change in our operations or in the way we utilize long-lived assets that causes a change to the interdependency of cash flows. We review asset groups for potential impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable, such as a significant decrease in market price of an asset, a significant adverse change in the extent or manner in which an asset or an asset group is being used or its physical condition, a significant adverse change in legal factors or business climate that could affect the value of an asset or an asset group or a continuous deterioration of our financial condition. Recoverability of asset groups to be held and used is assessed by comparing the carrying amount of an asset group to estimated undiscounted future net cash flows expected to be generated by the asset group. If the carrying

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amount of the asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized in the amount by which its carrying amount exceeds its fair value. We recorded $166 million of impairment charges related to our property, plant and equipment during the year ended December 31, 2024. No impairment charges were recorded during the years ended December 31, 2023 and 2022.

We enter into non-cancellable lease arrangements as the lessee primarily for our data center spaces, office spaces and equipment. Assets acquired through finance leases are included in property, plant and equipment, net on the consolidated balance sheets.

Assets Held for Sale

Assets and liabilities to be disposed of that meet all of the criteria to be classified as held for sale are reported at the lower of their carrying amounts or fair values less costs to sell. We did not record any impairment charges related to assets held for sale during the years ended December 31, 2024, 2023 and 2022. Assets are not depreciated or amortized while they are classified as held for sale. We did not have any assets classified as held for sale as of December 31, 2024 or 2023.

Asset Retirement Costs and Asset Retirement Obligations

Our asset retirement obligations are primarily related to our IBX data centers, of which the majority are leased under long-term arrangements and are required to be returned to the landlords in their original condition. The majority of our IBX data center leases have been subject to significant development by us in order to convert them from, in most cases, vacant buildings or warehouses into IBX data centers. The fair value of a liability for an asset retirement obligation is recognized in the period in which it is incurred. The associated retirement costs are capitalized and included as part of the carrying value of the long-lived asset and amortized over the useful life of the asset. Subsequent to the initial measurement, we accrete the liability in relation to the asset retirement obligations over time and the accretion expense is recorded as a cost of revenue. For further information on our asset retirement obligations, see Note 6.

Goodwill and Other Intangible Assets

We have three reportable segments comprised of the 1) Americas, 2) EMEA and 3) Asia-Pacific geographic regions, which we also determined are our reporting units. Goodwill is not amortized and is tested for impairment at least annually or more often if and when circumstances indicate that goodwill is not recoverable.

Generally, we assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. Qualitative factors considered in the assessment include industry and market conditions, overall financial performance and other relevant events and factors affecting the reporting unit. If, after assessing the qualitative factors, we determine that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then performing a quantitative impairment test is unnecessary. However, if we conclude otherwise, then we are required to perform a quantitative goodwill impairment test. The quantitative impairment test, which is used to identify both the existence of impairment and the amount of impairment loss, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired. If the carrying value of the reporting unit exceeds its fair value, any excess of the reporting unit goodwill carrying value over the respective implied fair value is recognized as an impairment loss. In 2024, we elected to bypass the optional qualitative assessment and performed the quantitative assessment for our Americas, EMEA and Asia-Pacific reporting units. In 2023 and 2022, we performed qualitative assessments for our three reporting units.

As of December 31, 2024, 2023 and 2022, we concluded that it was more likely than not that goodwill attributed to our Americas, EMEA and Asia-Pacific reporting units was not impaired as the fair value of each reporting unit exceeded the carrying value of its respective reporting unit, including goodwill.

Substantially all of our intangible assets are subject to amortization and are amortized using the straight-line method over their estimated period of benefit. As described above, we perform a review of all long-lived assets, including finite-lived intangible assets, at the asset group level for impairment by assessing events or changes in circumstances that indicate the carrying amount of an asset group may not be recoverable. Recoverability of asset groups to be held and used is assessed by comparing the carrying amount of an asset group to estimated undiscounted future net cash flows expected to be generated by the asset group. If the carrying amount of the asset

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group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which its carrying amount exceeds its fair value. We recorded $29 million of impairment charges related to our finite-lived intangible assets during the year ended December 31, 2024. No impairment was recorded during the years ended December 31, 2023 and 2022. For further information on goodwill and other intangible assets, see Notes 3 and 6.

Debt Issuance Costs

Costs and fees incurred upon debt issuances are capitalized and are amortized over the life of the related debt based on the effective interest method. Such amortization is included as a component of interest expense. Debt issuance costs related to outstanding debt are presented as a reduction of the carrying amount of the debt obligation and debt issuance costs related to the revolving credit facility are presented as other assets. For further information on debt facilities, see Note 10 below.

Derivatives and Hedging Activities

We utilize foreign currency and interest rate derivative instruments as part of our risk management strategy. Foreign currency derivatives help to mitigate the effects of foreign exchange rate fluctuations on (i) our expected revenues and expenses in the EMEA region, (ii) investments in our foreign operations and (iii) certain monetary assets and liabilities denominated in foreign currencies. Interest rate derivatives are used to manage the interest rate risk associated with anticipated fixed-rate debt issuances.

These measures allow us to effectively control our financial exposure and are not used for speculative purposes. We recognize all derivatives on our consolidated balance sheets at fair value. The accounting for changes in the value of a derivative depends on whether the contract qualifies and has been designated for hedge accounting. In order to qualify for hedge accounting, a derivative must be considered highly effective at reducing the risk associated with the exposure being hedged and there must be documentation of the risk management objective and strategy, including identification of the hedging instrument, the hedged item and the risk exposure, and the effectiveness assessment methodology. Hedge designations are reviewed on a quarterly basis to assess whether circumstances have changed that would disrupt the hedging instrument's relationship to the forecasted transactions or net investment.

Cash Flow Hedges

The instruments we designate as cash flow hedges include foreign currency forwards, cross-currency swaps and interest rate locks. For cash flow hedges, we use a regression analysis at the time they are designated to assess their effectiveness.

We enter into intercompany foreign currency forward contracts ("intercompany derivatives") with our wholly-owned subsidiaries in our EMEA region in order to hedge certain forecasted revenues and expenses denominated in currencies other than the U.S. Dollar (primarily the British Pound and the Euro). Simultaneously, we enter into foreign currency forward contracts with unrelated third parties to externally hedge the net exposure created by such intercompany derivatives. We designate the intercompany derivatives as cash flow hedges. We use the forward method to assess effectiveness of qualifying foreign currency forwards that are designated as cash flow hedges, whereby the change in the fair value of the derivative is recorded in other comprehensive income (loss) and reclassified to the same line item in the consolidated statement of operations that is used to present the earnings effect of the hedged item when the hedged item affects earnings.

We also utilize cross-currency interest rate swaps, which we designate as cash flow hedges, to manage the foreign currency exposure associated with a portion of our foreign currency-denominated variable-rate debt and our U.S. dollar-denominated fixed-rate debt issued by our foreign subsidiaries. We assess the effectiveness of cross-currency interest rate swaps that are designated as cash flow hedges using the spot method. Fair value changes from spot rates are recognized in other comprehensive income (loss) initially and immediately reclassified to earnings to offset the gain or loss from remeasuring the associated debt. We exclude time value and cross currency basis spread from the assessment of hedge effectiveness and recognize the excluded component in interest expense through the swap accrual process. The difference between fair value changes of the excluded component and the amount amortized is recognized in other comprehensive income (loss).

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We use interest rate derivative instruments such as treasury locks and swap locks, collectively referred to as "interest rate locks", to manage interest rate exposure created by anticipated fixed-rate debt issuances. An interest rate lock is a synthetic forward sale of a benchmark interest rate, which is settled in cash based upon the difference between an agreed upon rate at inception and the prevailing benchmark rate at settlement. It effectively fixes the benchmark rate component of an upcoming debt issuance. The interest rate lock transactions are designated as cash flow hedges, with all changes in value recorded in other comprehensive income (loss). Subsequent to settlement, amounts in other comprehensive income (loss) are amortized to interest expense over the term of the interest rate locks.

When two or more derivative instruments in combination are jointly designated as a cash flow hedging instrument, they are treated as a single instrument. For hedge relationships that are discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related derivative amounts recorded in other comprehensive income (loss) are immediately recognized in earnings.

We classify cash flows from derivative instruments designated as cash flow hedges in the same category as the cash flows from the item being hedged.

Net Investment Hedges

We use cross-currency swaps, which we designate as net investment hedges, to hedge the currency exposure associated with our net investment in our foreign subsidiaries. We use the spot method to assess effectiveness of cross-currency interest rate swaps that are designated as net investment hedges, whereby the change in fair value due to foreign currency exchange spot rates is recorded in other comprehensive income (loss) and the change in fair value of the excluded component is recorded in other comprehensive income (loss) and amortized to interest expense through the swap accrual process.

Occasionally, we also use foreign exchange forward contracts, which we designate as net investment hedges, to hedge against the effect of foreign exchange rate fluctuations on a portion of our net investment in foreign subsidiaries. We use the spot method to assess hedge effectiveness and recognize fair value changes from spot rates in other comprehensive income (loss). We exclude forward points from the assessment of hedge effectiveness and amortize the initial value of the excluded component through interest expense. The difference between fair value changes from the excluded component and the amount amortized is recognized in other comprehensive income (loss).

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.

Non-designated Hedges

Foreign currency gains or losses associated with derivatives that are not designated as hedging instruments for accounting purposes are recorded within other income (expense) in our consolidated statements of operations.

For further information on derivatives and hedging activities, see Note 7.

Fair Value of Financial Instruments

The carrying values of our cash equivalents held in money market funds and the carrying value of our derivative instruments represent their fair values. The carrying values of our cash equivalents held in time deposits and the carrying values of our accounts receivable, accounts payable, accrued expenses and accrued property, plant and equipment approximate their fair values primarily due to the short-term maturity of the related instruments. The fair value of short-term investments held in time deposits is estimated by considering observable market prices of similar instruments. The fair value of our debt traded in the public debt market is based on quoted market prices. The fair value of our debt which is not publicly traded is estimated by considering our credit rating, current rates available to us for debt of the same remaining maturities and terms. The fair value of our loan receivable is

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estimated by discounting the contractual cash flows of the loan, using indicative pricing from third parties for similar instruments and asset-specific yield adjustments for elements such as credit risk.

Fair Value of Non-Financial Assets and Liabilities

We also follow the accounting standard for the measurement of fair value for certain non-financial assets and liabilities on a nonrecurring basis. These include:

Non-financial assets and non-financial liabilities initially measured at fair value in a business combination or other new basis event, but not measured at fair value in subsequent reporting periods;
Reporting units and non-financial assets and non-financial liabilities measured at fair value for goodwill impairment tests;
Indefinite-lived intangible assets measured at fair value for impairment assessments;
Non-financial long-lived assets or asset groups measured at fair value for impairment assessments or disposal;
Asset retirement obligations initially measured at fair value but not subsequently measured at fair value; and
Assets and liabilities classified as held for sale measured at fair value less costs to sell and reported at the lower of the carrying amounts or the fair values less costs to sell.

For further information on fair value measurements, see Note 8.

Leases

We enter into lease arrangements primarily for land, data center spaces, office spaces and equipment. At its inception, we determine whether an arrangement is or contains a lease. We recognize a right-of-use ("ROU") asset and lease liability on the consolidated balance sheet for all leases with a term longer than 12 months, including renewal options that we are reasonably certain to exercise.

ROU assets represent our right to use an underlying asset for the lease term. Lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are classified and recognized at the commencement date. When there is a lease modification or a change in lease term triggered by a reassessment event, we reassess its classification and remeasure the ROU asset and lease liability.

Lease liabilities are measured based on the present value of fixed lease payments over the lease term. ROU assets consist of (i) initial measurement of the lease liability, (ii) lease payments made to the lessor at or before the commencement date less any lease incentives received and (iii) initial direct costs incurred by us. Lease payments may vary because of changes in facts or circumstances occurring after the commencement, including changes in inflation indices. Variable lease payments that depend on an index or a rate (such as the Consumer Price Index or a market interest rate) are included in the measurement of ROU assets and lease liabilities using the index or rate at the commencement date. Subsequent changes to lease payments based on changes to the index and rate are accounted for as variable lease payments and recognized in the period they are incurred. Variable lease payments that do not depend on an index or a rate are excluded from the measurement of ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. Since most of our leases do not provide an implicit rate, we use our own incremental borrowing rate ("IBR") on a collateralized basis in determining the present value of lease payments. We utilize a market-based approach to estimate the IBR. The approach requires significant judgment. Therefore, we utilize different data sets to estimate IBRs via an analysis of (i) sovereign rates, (ii) yields on our outstanding public debt and (iii) indicative pricing on both secured and unsecured debt received from banking partners. We also apply adjustments to account for considerations related to (i) tenor and (ii) country credit ratings that may not be fully incorporated by the aforementioned data sets.

The majority of our lease arrangements include options to extend the lease. If we are reasonably certain to exercise such options, the periods covered by the options are included in the lease term. The depreciable lives of certain fixed assets and leasehold improvements are limited by the expected lease term. We have certain leases with a term of 12 months or less. For such leases, we elected not to recognize any ROU asset or lease liability on the consolidated balance sheet. We have lease agreements with lease and non-lease components. We elected to account for the lease and non-lease components as a single lease component for all classes of underlying assets for which we have identified as lease arrangements.

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As described above, we perform a review of all long-lived assets, including ROU assets, at the asset group level for impairment by assessing events or changes in circumstances that indicate the carrying amount of an asset group may not be recoverable. Recoverability of asset groups to be held and used is assessed by comparing the carrying amount of an asset group to estimated undiscounted future net cash flows expected to be generated by the asset group. If the carrying amount of the asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which its carrying amount exceeds its fair value. We recorded $38 million of impairment charges related to our operating lease ROU assets during the year ended December 31, 2024. No impairment charges were recorded during the years ended December 31, 2023 and 2022. For further information on leases, see Note 9.

Revenue

Revenue Recognition

We derive more than 90% of our revenues from recurring revenue streams, consisting primarily of (1) colocation, which includes the licensing of cabinet space and power; (2) interconnection offerings; (3) managed infrastructure solutions and (4) other revenues consisting of rental income from tenants or subtenants. The remainder of our revenues are from non-recurring revenue streams, such as installation revenues, professional service fees including from our joint ventures, contract settlements and equipment sales. Revenues by product lines and geographic regions are included in segment information in Note 18.

Revenues are recognized when control of these products and services is transferred to its customers, in an amount that reflects the consideration it expects to be entitled to in exchange for the products and services. Revenues from recurring revenue streams are generally billed monthly and recognized ratably over the term of the contract, generally 1 to 5 years for IBX data center colocation customers. Non-recurring installation fees, although generally paid upfront upon installation, are deferred and recognized ratably over the contract term. Professional service fees and equipment sales are recognized in the period when the services were provided. For the contracts with customers that contain multiple performance obligations, we account for individual performance obligations separately if they are distinct or as a series of distinct obligations if the individual performance obligations meet the series criteria. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. The transaction price is allocated to the separate performance obligation on a relative standalone selling price basis. The standalone selling price is determined based on overall pricing objectives, taking into consideration market conditions, geographic locations and other factors. Other judgments include determining if any variable consideration should be included in the total contract value of the arrangement such as price increases.

Revenue is generally recognized on a gross basis as a principal versus on a net basis as an agent, as we are primarily responsible for fulfilling the contract, bear inventory risk and have discretion in establishing the price when selling to the customer. To the extent we do not meet the criteria for recognizing revenue on a gross basis, we record the revenue on a net basis. Revenue from contract settlements, when a customer wishes to terminate their contract early, is treated as a contract modification and recognized ratably over the remaining term of the contract, if any.

We guarantee certain service levels, such as uptime, as outlined in individual customer contracts. If these service levels are not achieved due to any failure of the physical infrastructure or offerings, or in the event of certain instances of damage to customer infrastructure within our IBX data centers, we would reduce revenue for any credits or cash payments given to the customer. Historically, these credits and cash payments have not been significant.

We enter into revenue contracts with customers for data centers and office space that contain both lease and non-lease components. We elected to adopt the practical expedient which allows lessors to combine lease and non-lease components, by underlying class of asset, and account for them as one component if they have the same timing and pattern of transfer. The combined component is accounted for in accordance with the current lease accounting guidance ("Topic 842") if the lease component is predominant, and in accordance with the current revenue accounting guidance ("Topic 606") if the non-lease component is predominant. In general, customer contracts for data centers are accounted for under Topic 606 and customer contracts for the use of office space are accounted for under Topic 842, which are generally classified as operating leases and are recognized on a straight-line basis over the lease term.

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As part of our ongoing involvement in our xScaleTM joint venture equity method investments, we enter into certain contracts with these ventures to provide our data center expertise in exchange for professional service fee revenue. Such services include development and construction management, sales and marketing, facilities management, asset management and procurement. In general, the revenue is recognized as the services are performed. Revenue for certain services, such as sales and marketing, are recognized at a point in time. In addition, the revenue for the sales and marketing fees may be recognized several years in advance of payment from the xScale joint ventures, as payment is often tied to deployment of the customer.

Certain customer agreements are denominated in currencies other than the functional currencies of the parties involved. Under applicable accounting rules, we are deemed to have foreign currency forward contracts embedded in these contracts. We assessed these embedded contracts and concluded them to be foreign currency embedded derivatives (see Note 7). These instruments are separated from their host contracts and held on our consolidated balance sheet at their fair value. The majority of these foreign currency embedded derivatives arise in certain of our subsidiaries where the local currency is the subsidiary's functional currency and the customer contract is denominated in the U.S. dollar. For certain contracts, 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. Please see Note 7 for further discussion of these hedges. For all other customer contracts containing embedded derivatives, changes in their fair values are recognized within revenues in our consolidated statements of operations.

Contract Balances

The timing of revenue recognition, billings and cash collections result in accounts receivables, contract assets and deferred revenues. A receivable is recorded at the invoice amount, net of an allowance for credit losses and is recognized in the period when we have transferred products or provided services to our customers and when its right to consideration is unconditional. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 45 days. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined that our contracts generally do not include a significant financing component. We assess collectability based on a number of factors, including past transaction history with the customer and the credit-worthiness of the customer. We generally do not request collateral from our customers although in certain cases we obtain a security interest in a customer's equipment placed in our IBX data centers or obtain a deposit. We also maintain an allowance for estimated losses on a lifetime loss basis resulting from the inability of our customers to make required payments for which we had expected to collect the revenues in accordance with the credit loss guidance accounting guidance ("Topic 326"). If the financial condition of our customers were to deteriorate or if they became insolvent, resulting in an impairment of their ability to make payments, greater allowances for credit losses may be required. We specifically analyze current economic news, conditions and trends, historical loss rates, customer concentrations, customer credit-worthiness, changes in customer payment terms and any applicable long-term forecast when evaluating revenue recognition and the adequacy of our reserves for our accounts receivable. Any amounts that were previously recognized as revenue and subsequently determined to be uncollectible are charged to bad debt expense included in sales and marketing expense in the consolidated statements of operations. A specific bad debt reserve of up to the full amount of a particular invoice value is provided for certain problematic customer balances. An additional reserve is established for all other accounts based on an analysis of historical credits issued. Delinquent account balances are written off after management has determined that the likelihood of collection is not probable.

A contract asset exists when we have transferred products or provided services to our customers but customer payment is conditioned on reasons other than the passage of time, such as upon the satisfaction of additional performance obligations. Certain contracts include terms related to price arrangements such as price increases and free months. We recognize revenues ratably over the contract term, which could potentially give rise to contract assets during certain periods of the contract term. Contract assets are recorded in other current assets and other assets in the consolidated balance sheet.

Deferred revenue (a contract liability) is recognized when we have an unconditional right to a payment before we transfer the products or services to customers. Deferred revenue is included in other current liabilities and other liabilities, respectively, in the consolidated balance sheet.

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Contract Costs

Direct and indirect incremental costs solely related to obtaining revenue contracts are capitalized as costs of obtaining a contract, when they are incremental and if they are expected to be recovered. Such costs consist primarily of commission fees and sales bonuses, as well as indirect related payroll costs. In 2024, contract costs were amortized over the estimated period of approximately 7 years on a straight-line basis. We elected to apply the practical expedient which allows us to expense contract costs when incurred, if the amortization period is one year or less.

For further information on revenue recognition, see Note 2 below.

Income Taxes

Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized based on the future tax consequences attributable to differences that exist between the financial statement carrying amounts of assets and liabilities and their respective tax bases, as well as tax attributes such as net operating loss, capital loss and tax credits carryforwards on a taxing jurisdiction basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled, and the tax attributes to be utilized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are expected more likely than not to be realized in the future. A tax benefit from an uncertain income tax position may be recognized in the financial statements only if it is more likely than not that the position is sustainable, based solely on its technical merits and consideration of the relevant taxing authority's widely understood administrative practices and precedents. Recognized income tax positions are measured at the largest amount that has a greater than 50 percent likelihood of being realized. Any subsequent changes in recognition or measurement are reflected in the period in which the change in judgment occurs.

We elected to be taxed as a REIT for U.S. federal income tax purposes beginning with our 2015 taxable year. As a result, we may deduct the dividends distributed to our stockholders from taxable income generated by us and that of our 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 the 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 for U.S. income tax purposes.

Our qualification and taxation as a REIT depend on our satisfaction of certain asset, income, organizational, distribution, stockholder ownership and other requirements on a continuing basis. Our ability to satisfy quarterly asset tests depends upon our analysis and the fair market values of our REIT and non-REIT assets. For purposes of the quarterly REIT asset tests, we estimate the fair market value of assets within our QRSs and TRSs using a discounted cash flow approach, by calculating the present value of forecasted future cash flows. We apply discount rates based on industry benchmarks relative to the market and forecasting risks. Other significant assumptions used to estimate the fair market value of assets in QRSs and TRSs include projected revenue growth, projected operating margins, and projected capital expenditures.

For further information on income taxes, see Note 13 below.

Stock-Based Compensation

Stock-based compensation cost is measured at the grant date for all stock-based awards made to employees and directors based on the fair value of the award. We generally recognize stock-based compensation expense on a straight-line basis over the requisite service period of the awards, which is generally the vesting period. However, for awards with market conditions or performance conditions, stock-based compensation expense is recognized on a straight-line basis over the requisite service period for each vesting tranche of the award. We elected to estimate forfeitures based on historical forfeiture rates.

We grant restricted stock units ("RSUs") or restricted stock awards ("RSAs") to our employees and these equity awards generally have only a service condition. We grant RSUs to our executives that generally have a service and performance condition or a service and market condition. Performance conditions contained in an equity award are

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generally tied to our financial performance. We assess the probability of meeting these performance conditions on a quarterly basis. The majority of our RSUs vest over four years, although certain equity awards for executives vest over a range of two to four years. Our RSAs vest over three years. The valuation of RSUs and RSAs with only a service condition or a service and performance condition requires no significant assumptions as the fair value for these types of equity awards is based solely on our stock price on the date of grant. We use a Monte Carlo simulation option-pricing model to determine the fair value of RSUs with a service and market condition.

We use the Black-Scholes option-pricing model to determine the fair value of our employee stock purchase plan ("ESPP"). The determination of the fair value of shares purchased under the ESPP is affected by assumptions regarding a number of complex and subjective variables including our expected stock price volatility over the term of the awards and actual and projected employee stock purchase behaviors. We estimated the expected volatility by using the average historical volatility of its common stock that it believed was best representative of future volatility. The risk-free interest rate used was based on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term of the equity awards. The expected dividend rate used was based on average dividend yields and the expected term used was equal to the term of each purchase window.

The accounting standard for stock-based compensation does not allow the recognition of unrealized tax benefits associated with the tax deductions in excess of the compensation recorded (excess tax benefit) until the excess tax benefit is realized (i.e., reduces taxes payable). We record the excess tax benefits from stock-based compensation as income tax expense through the statement of operations. For further information on stock-based compensation, see Note 12 below.

Foreign Currency Transactions

Foreign exchange gains or losses resulting from foreign currency transactions, including intercompany foreign currency transactions that are anticipated to be repaid within the foreseeable future, are reported within other income (expense) on our accompanying consolidated statements of operations. For additional information on the impact of foreign currencies to our consolidated financial statements, see "Accumulated Other Comprehensive Loss" in Note 11.

The financial position of foreign subsidiaries is translated using the exchange rates in effect at the end of the period, while income and expense items are translated at average exchange rates during the period. Gains or losses from translation of foreign operations where the local currency is the functional currency are included as other comprehensive income (loss). The net gains and losses resulting from foreign currency transactions are recorded in net income in the period incurred and recorded within other income (expense). Certain intercompany balances are designated as loans of a long-term investment-type nature. Accordingly, exchange gains and losses associated with these long-term intercompany balances are recorded as a component of other comprehensive income (loss), along with translation adjustments.

Earnings Per Share

We compute basic and diluted EPS for net income. Basic EPS is computed using net income and the weighted-average number of common shares outstanding. Diluted EPS is computed using net income and the weighted-average number of common shares outstanding plus any dilutive potential common shares outstanding. Dilutive potential common shares include the assumed vesting and issuance activity of employee equity awards using the treasury stock method. For further information on earnings per share, see Note 4 below.

Treasury Stock

We account for treasury stock under the cost method. When treasury stock is re-issued at a higher price than its cost, the difference is recorded as a component of additional paid-in capital to the extent that there are gains to offset the losses. If there are no treasury stock gains in additional paid-in capital, the losses are recorded as a component of retained earnings.

Changes to Prior Period

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Recent Accounting Pronouncements

Accounting Standards Not Yet Adopted

In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2024-03: Disaggregation of Income Statement Expenses ("DISE"). The ASU requires additional disclosure of the nature of expenses included in the income statement. The ASU is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. The requirements will be applied prospectively with the option for retrospective application. Early adoption is permitted. We are currently evaluating the extent of the impact of this ASU on disclosures in our 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 (i) consistent categories and greater disaggregation of information in the rate reconciliation and (ii) income taxes paid disaggregated by jurisdiction. The ASU is effective for fiscal years beginning after December 15, 2024. The requirements will be applied prospectively with the option for retrospective application. Early adoption is permitted. We are currently evaluating the extent of the impact of this ASU on disclosures in our consolidated financial statements.

Accounting Standards Recently Adopted

Segment Reporting

In November 2023, FASB issued 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 adopted this ASU for the 2024 annual reporting period. Refer to Note 18 for disclosures required by this ASU.

Supplier Finance Programs

In September 2022, FASB issued 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 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 there was no impact on our consolidated financial statements as a result of adopting the guidance. We will evaluate our debt, derivative and lease contracts that may become eligible for modification relief and may apply the elections prospectively as needed.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Debt with Conversion and Other Options

In August 2020, FASB issued ASU 2020-06: Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40). The ASU simplifies the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock and modifies the disclosure requirement for the convertible instruments. Additionally, this ASU improves the consistency of EPS calculations by eliminating the use of the treasury stock method to calculate diluted EPS for convertible instruments and clarifies certain areas under the current EPS guidance. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021, with early adoption permitted at the beginning of the fiscal year after December 15, 2020. On January 1, 2022, we adopted this ASU on a prospective basis and the adoption of this standard did not have a material impact on our consolidated financial statements.

Business Combinations

In October 2021, FASB issued ASU 2021-08 Business Combinations ("Topic 805"): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The ASU requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers, as if it had originated the contracts. Under the current business combinations guidance, such assets and liabilities were recognized by the acquirer at fair value on the acquisition date. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022, with early adoption permitted. On April 1, 2022, we early adopted this ASU and the adoption of this standard did not have a material impact on our consolidated financial statements.

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 December 31, 2024	949		102		113		123		150
Increase (Decrease)	$	(55)	$	50	$	27	$	(2)	$	(4)

Beginning balances as of January 1, 2023	$	855	$	28	$	55	$	132	$	155
Closing balances as of December 31, 2023	1,004		52		86		125		154
Increase (Decrease)	$	149	$	24	$	31	$	(7)	$	(1)

(1) The net change in our allowance for credit losses was insignificant during the year ended December 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 during the years ended December 31, 2024 and 2023. The amounts of revenue recognized during the years ended December 31, 2024, 2023 and 2022 from the opening deferred revenue balance were $88 million, $95 million and $83 million, respectively. For the years ended December 31, 2024, 2023 and 2022, no impairment loss related to contract balances was recognized in the consolidated statement of operations.

Contract Costs

The ending balances of net capitalized contract costs as of December 31, 2024 and 2023 were $436 million and $423 million, respectively, which were included in other assets in the consolidated balance sheet. $122 million, $103

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

million, and $96 million of contract costs were amortized during years ended December 31, 2024, 2023 and 2022, respectively, which were included in sales and marketing expense in the consolidated statement of operations.

Remaining Performance Obligations

As of December 31, 2024, approximately $11.0 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 xScale 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.

3. Acquisitions

Pending Acquisition

Acquisition of TIM Data Centers (the "TIM Acquisition")

On July 20, 2024, we entered into an agreement to acquire three data centers in the Philippines from Total Information Management (“TIM”), a leading technology solutions provider in the market, for a stated purchase price of $180 million subject to certain adjustments. The acquisition is expected to close in the first half of 2025, subject to customary closing conditions. Upon the close of the acquisition, the operating results of the acquired business will be reported in the Asia-Pacific region. The TIM Acquisition supports our ongoing expansion to meet customer demand in the overall Asia market.

2022 Acquisitions

Acquisition of Entel Chile Data Centers (the "Entel Chile Acquisition") and Entel Peru Data Center (the "Entel Peru Acquisition")

On May 2, 2022, we further expanded in Latin America through an acquisition of four data centers in Chile from Entel, a leading Chilean telecommunications provider, for a total purchase consideration of $638 million at the exchange rate in effect on that date. On August 1, 2022, we completed the acquisition of a data center in Peru from Entel for a total purchase consideration of $80 million at the exchange rate in effect on that date. The Entel Chile Acquisition and Entel Peru Acquisition support our ongoing expansion to meet customer demand in the Latin American market.

Acquisition of MainOne (the "MainOne Acquisition")

On April 1, 2022, we completed the acquisition of all outstanding shares of MainOne, which consisted of four data centers as well as a subsea cable and terrestrial fiber network. We acquired MainOne and its assets for a total purchase consideration of $278 million. The MainOne Acquisition supports our ongoing expansion to meet customer demand in the West African market.

Purchase Price Allocation

Each of the acquisitions noted above constitute a business under the accounting standard for business combinations and, therefore, were accounted for as business combinations using the acquisition method of accounting. Under this method, the total purchase price is allocated to the assets acquired and liabilities assumed measured at fair value on the date of acquisition, except where alternative measurement is required under GAAP.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

During the year ended December 31, 2023, we completed the detailed valuation analysis and the final allocation of purchase price for the Entel Chile, Entel Peru, and MainOne Acquisitions.

A summary of the final allocation of total purchase consideration is presented as follows (in millions):


	Entel Chile		Entel Peru		MainOne
Cash and cash equivalents	$	—	$	—	$	33
Accounts receivable	—		—		9
Other current assets	12		—		22
Property, plant and equipment	81		13		239
Intangible assets	153		10		55
Goodwill	381		46		111
Deferred tax and other assets	12		11		6
Total assets acquired	639		80		475
Accounts payable and accrued liabilities	—		—		(19)
Other current liabilities (1)	—		—		(13)
Mortgage and loans payable	—		—		(26)
Deferred tax and other liabilities (1)	(1)		—		(139)
Net assets acquired	$	638	$	80	$	278

(1)For the MainOne Acquisition, other current liabilities includes $10 million of deferred revenue, current and deferred tax and other liabilities includes $95 million of deferred revenue, non-current.

Property, plant and equipment

The fair values of property, plant and equipment acquired from these three acquisitions were estimated by applying the cost approach, with the exception of land, which we estimated by applying the market approach. The key assumptions of the cost approach include replacement cost new, physical deterioration, functional and economic obsolescence, economic useful life, remaining useful life, age and effective age.

Intangible assets

The following table presents certain information on the acquired intangible assets (in millions):


Intangible Assets	Fair Value		Estimated Useful Lives (Years)	Weighted-average Estimated Useful Lives (Years)	Discount Rate
Entel Chile:
Customer relationships (1)	$	153	12.0 - 15.0	14.0	8.5% - 9.5%
Entel Peru:
Customer relationships (1)	10		15.0	15.0	7.0	%
MainOne:
Customer relationships (1)	52		10.0 - 15.0	14.0	11.5	%
Trade names (2)	3		5.0	5.0	11.5	%

(1)The fair value was estimated by calculating the present value of estimated future operating cash flows generated from existing customers less costs to realize the revenue and/or by using benchmarking. The rates reflect the nature of the assets as they relate to the risk and uncertainty of the estimated future operating cash flows, as well as the risk of the country within which the acquired business operates.

(2)The fair value of the MainOne trade name was estimated using the relief from royalty method under the income approach. We applied a relief from royalty rate of 1.0%.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and liabilities assumed. Goodwill is primarily attributable to the workforce of the acquired business

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

and the projected revenue increase expected to arise from future customers after the acquisition. Goodwill from the Entel Chile and Entel Peru acquisitions is attributable to the Americas region. Goodwill from the Entel Chile acquisition is amortizable for local tax purposes, while goodwill from the Entel Peru acquisition is not expected to be amortizable for local tax purposes. Goodwill from the MainOne Acquisition is attributable to the EMEA region and is generally not deductible for local tax purposes.

Revenues and net income from operations

The operating results of the Entel Peru and Entel Chile acquisitions are reported in the Americas region and the operating results of the MainOne Acquisition are reported in the EMEA region following the date of acquisition. During the year of acquisition, our results of operations from these acquisitions included $90 million of revenues and $8 million of income from operations.

Transaction costs

During the year of acquisition, the transaction costs for the Entel Chile and Entel Peru acquisitions were $7 million and the transaction costs for the MainOne acquisition were not significant.

4. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share ("EPS") for the years ended December 31 ($ in millions except per share data; share data in thousands):


	2024		2023		2022
Net income	$	814	$	969	$	705
Net loss attributable to non-controlling interests	1		—		—
Net income attributable to common stockholders	$	815	$	969	$	705

Weighted-average shares used to calculate basic EPS	95,457		93,615		91,569
Effect of dilutive securities:
Employee equity awards	370		394		259
Weighted-average shares used to calculate diluted EPS	95,827		94,009		91,828

EPS attributable to common stockholders:
Basic EPS	$	8.54	$	10.35	$	7.69
Diluted EPS	$	8.50	$	10.31	$	7.67

The following table sets forth potential shares of common stock that are not included in the diluted EPS calculation above because to do so would be anti-dilutive for the years ended December 31 (in thousands):


	2024	2023	2022


Common stock related to employee equity awards and other	359	68	582
Total	359	68	582

5. Equity Method Investments

We hold various equity method investments, primarily interests in 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 joint ventures are classified as Variable Interest Entities ("VIEs").

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EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The following table summarizes our equity method investments, which were included in other assets on the consolidated balance sheets as of December 31 (in millions):


Investee	Ownership Percentage	2024		2023
EMEA 1 Joint Venture	20%	$	131	$	150
VIE Joint Ventures (1)	20%	374		308
Other	Various	14		10
Total		$	519	$	468

(1)Includes investments in the following 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", "AMER 1 Joint Venture" and "AMER 2 Joint Venture" (defined below). These investments share a similar purpose, design and nature of assets.

Non-VIE Joint Venture

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 years ended December 31, 2024, 2023 and 2022 and was included in other income (expense) on the consolidated statement of operations.

We committed to make future equity contributions to the EMEA 1 Joint Venture for funding its future development. As of December 31, 2024, we had future equity contribution commitments of $39 million.

VIE Joint Ventures

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 $24 million, $12 million and $9 million for the years ended December 31, 2024, 2023 and 2022, respectively, and were included in other income (expense) on the consolidated statement of operations.

AMER 1 Joint Venture

In March 2023, we invested in the AMER 1 Joint Venture. Upon formation of the joint venture, we sold the assets and liabilities of the Mexico 3 ("MX3") data center, which were included within our Americas region, 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.

AMER 2 Joint Venture

On April 10, 2024, we invested in a joint venture to develop and operate an xScale data center in the Americas region (the “AMER 2 Joint Venture”). At closing, we sold the assets and liabilities of the Silicon Valley 12 (“SV12”) data center site, which were included within our Americas region, for total consideration of $293 million, which was comprised of $246 million of net cash proceeds, a 20% partnership interest in the AMER 2 Joint Venture with a fair value of $26 million, and $21 million of receivables. We recognized a gain of $18 million on the sale of the SV12 data center.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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


	VIE Joint Ventures
Equity Investment	$	374
Outstanding Accounts Receivable	50
Other Receivables	46
Contract Assets	125
Loan Commitment (1)	392
Future Equity Contribution Commitments (2)	66
Maximum Future Payments under Debt Guarantees (3)	246
Total	$	1,299

(1)Concurrent with the closing of the AMER 2 Joint Venture, we entered into a loan agreement with the AMER 2 Joint Venture, as a lender, further discussed in Note 15.

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

(3)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 relates to our AMER 1 Joint Venture. Refer to Note 14.

AMER 3 Joint Venture

On October 1, 2024, we entered into an agreement to form a joint venture to develop and operate xScale data centers in the Americas region (the "AMER 3 Joint Venture"), subject to regulatory approval and other closing conditions which were satisfied on October 30, 2024. As of December 31, 2024 there have been no equity contributions made to the AMER 3 Joint Venture and its closing had no impact on the consolidated financial statements.

6. Balance Sheet Components

Cash, Cash Equivalents and Short-Term Investments

Cash and cash equivalents and short-term investments consisted of the following as of December 31 (in millions):


	2024		2023
Cash	$	565	$	492
Cash equivalents:
Money market funds	2,401		1,364
Time deposits	115		240
Total cash and cash equivalents	3,081		2,096
Short-term investments:
Time deposits	527		—
Total short-term investments	527		—
Total cash, cash equivalents and short-term investments	$	3,608	$	2,096

As of December 31, 2024 and 2023, cash and cash equivalents included investments which were readily convertible to cash and generally had original maturities of 3 months or less. The maturities of time deposits classified as short-term investments were one year or less as of December 31, 2024.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Accounts Receivable

Trade accounts receivable are recorded at the invoiced amount and generally do not bear interest. Accounts receivable, net, consisted of the following as of December 31 (in millions):


	2024		2023
Accounts receivable	$	968	$	1,021
Allowance for credit losses	(19)		(17)
Accounts receivable, net	$	949	$	1,004

The following table summarizes the activity of our allowance for credit losses (in millions):


Balance as of December 31, 2021	$	12
Provision for credit losses	7
Net write-offs	(7)

Balance as of December 31, 2022	12
Provision for credit losses	15
Net write-offs	(9)
Impact of foreign currency exchange	(1)
Balance as of December 31, 2023	17
Provision for credit losses	21
Net write-offs	(20)
Impact of foreign currency exchange	1
Balance as of December 31, 2024	$	19

Other Current Assets

Other current assets consisted of the following as of December 31 (in millions):


	2024		2023
Derivative assets, current	$	296	$	44
Taxes receivable	223		167
Other receivables (1)	106		80
Contract assets, current	102		52
Prepaid expenses, current	91		100
Other (2)	72		25
Total other current assets	$	890	$	468

(1)Includes receivables due from our joint ventures. See Note 15.

(2)Includes an insignificant amount of restricted cash, current.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Property, Plant and Equipment, Net

Property, plant and equipment, net consisted of the following as of December 31 (in millions):


	2024		2023
Core systems	$	12,890	$	12,604
Buildings	9,475		8,972
Construction in progress	2,204		1,918
Internal-use software	2,149		1,936
Leasehold improvements	1,980		2,045
Land	1,652		1,407
Personal property	373		320
	30,723		29,202
Less accumulated depreciation	(11,474)		(10,601)
Property, plant and equipment, net	$	19,249	$	18,601

Goodwill and Other Intangibles

The following table presents goodwill and other intangible assets, net, for the years ended December 31, 2024 and 2023 (in millions):


	2024		2023
Goodwill:
Americas	$	2,559	$	2,631
EMEA	2,349		2,467
Asia-Pacific	596		639
	$	5,504	$	5,737
Intangible assets, net:
Intangible assets - customer relationships	$	2,745	$	2,892
Intangible assets - trade names	16		13
Intangible assets - in-place leases	27		30
Intangible assets - licenses	10		10
Intangible assets - at-the-money lease contracts	55		59
Intangible assets - other	8		8
	2,861		3,012






Less accumulated depreciation	(1,444)		(1,307)
Total intangible assets, net	$	1,417	$	1,705

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Changes in the carrying amount of goodwill by geographic regions are as follows (in millions):


	Americas		EMEA		Asia-Pacific		Total
Balance as of December 31, 2021	$	2,210	$	2,473	$	689	$	5,372
Purchase of MainOne	—		111		—		111
Purchase of Entel Chile	381		—		—		381
Purchase of Entel Peru	46		—		—		46
Impact of foreign currency exchange	(6)		(206)		(44)		(256)
Balance as of December 31, 2022	2,631		2,378		645		5,654
Impact of foreign currency exchange	—		89		(6)		83
Balance as of December 31, 2023	2,631		2,467		639		5,737
Impact of foreign currency exchange	(72)		(118)		(43)		(233)
Balance as of December 31, 2024	$	2,559	$	2,349	$	596	$	5,504

Changes in the net book value of intangible assets by geographic regions are as follows (in millions):


	Americas		EMEA		Asia-Pacific		Total
Balance as of December 31, 2021	$	1,328	$	432	$	176	$	1,936
Entel Chile acquisition	153		—		—		153
Entel Peru acquisition	10		—		—		10
MainOne acquisition	—		55		—		55
Amortization of intangibles	(138)		(52)		(15)		(205)
Impact of foreign currency exchange	(4)		(33)		(14)		(51)
Balance as of December 31, 2022	1,349		402		147		1,898
Other asset acquisitions	7		—		1		8
Amortization of intangibles	(140)		(54)		(14)		(208)
Impact of foreign currency exchange	—		10		(3)		7
Balance as of December 31, 2023	1,216		358		131		1,705

Impairment charges (1)	(29)		—		—		(29)
Amortization of intangibles	(140)		(54)		(14)		(208)
Impact of foreign currency exchange	(25)		(16)		(10)		(51)
Balance as of December 31, 2024	$	1,022	$	288	$	107	$	1,417

(1)Refer to Note 17.

Goodwill and intangible assets which are denominated in currencies other than the U.S. Dollar are subject to foreign currency fluctuations. Our foreign currency translation gains and losses, including goodwill and intangibles, are a component of other comprehensive income (loss).

F-29

EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Estimated future amortization expense related to these intangibles is as follows (in millions):


Years ending:
2025	$	194
2026	193
2027	192
2028	190
2029	170
Thereafter	478
Total	$	1,417

Other Assets

Other assets consisted of the following as of December 31 (in millions):


	2024		2023
Equity method investments	$	519	$	468
Contract costs	436		423
Derivative assets, non-current	295		213
Loan receivable	258		—
Prepaid expenses, non-current	171		134
Deferred CCA implementation costs	115		105
Contract assets, non-current	113		86
Deposits	60		60
Deferred tax assets, net	48		62
Debt issuance costs, net	3		5
Other (1)	31		35
Total other assets	$	2,049	$	1,591

(1)Includes an insignificant amount of restricted cash, non-current.

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following as of December 31 (in millions):


	2024		2023
Accrued compensation and benefits	$	421	$	438
Accrued taxes (1)	196		161
Accrued utilities and security	164		178
Accounts payable	133		162
Accrued interest	96		90
Other	183		158
Total accounts payable and accrued expenses	$	1,193	$	1,187

(1)Accrued taxes included income taxes payable of $109 million and $81 million as of December 31, 2024 and 2023, respectively.

F-30

EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Other Current Liabilities

Other current liabilities consisted of the following as of December 31 (in millions):


	2024		2023
Deferred revenue, current	$	123	$	125
Derivative liabilities, current	27		94
Customer deposits	16		16
Dividends payable, current	16		13

Asset retirement obligations, current	1		5
Other	49		49
Total other current liabilities	$	232	$	302

Other Liabilities

Other liabilities consisted of the following as of December 31 (in millions):


	2024		2023
Deferred tax liabilities, net	$	339	$	394
Deferred revenue, non-current	150		154
Asset retirement obligations, non-current	108		108
Derivative liabilities, non-current	46		8
Accrued taxes	42		56
Dividends payable, non-current	13		12

Other non-current liabilities	62		64
Total other liabilities	$	760	$	796

The following table summarizes the activities of our asset retirement obligations ("ARO") (in millions):


Asset retirement obligations as of December 31, 2021	$	118
Additions	3
Adjustments (1)	(4)
Accretion expense	5
Impact of foreign currency exchange	(4)
Asset retirement obligations as of December 31, 2022	118
Additions	1
Adjustments (1)	(13)
Accretion expense	7

Asset retirement obligations as of December 31, 2023	113
Additions	6
Adjustments (1)	(12)
Accretion expense	6
Impact of foreign currency exchange	(4)
Asset retirement obligations as of December 31, 2024	$	109

(1)The ARO adjustments are primarily due to lease amendments and acquisition of real estate assets.

F-31

EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

7. Derivatives and Hedging Instruments

Derivatives and Nonderivatives 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 December 31, 2024 and 2023, the total principal amounts of foreign currency debt obligations designated as net investment hedges were $1.0 billion and $1.5 billion, respectively.

Foreign Currency Forward Contracts: We use foreign currency forward contracts, designated as net investment hedges, to hedge against the effect of foreign exchange rate fluctuations on our net investment in our foreign subsidiaries. We use the spot method to assess hedge effectiveness and recognize fair value changes from spot rates in other comprehensive income (loss). We exclude forward points from the assessment of hedge effectiveness and amortize the initial value of the excluded component through interest expense. The difference between fair value changes from the excluded component and the amount amortized is recognized in other comprehensive income (loss).

Embedded Derivatives: 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. As of December 31, 2024 and December 31, 2023, the total remaining contract value of such customer agreements outstanding under this hedging program was $213 million and $223 million, respectively.

Cross-currency Interest Rate Swaps: We also use 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. We use the spot method to assess hedge effectiveness and recognize fair value changes from spot rates in other comprehensive income (loss). We exclude time value and cross currency basis spread from the assessment of hedge effectiveness and recognize the excluded component in interest expense through the swap accrual process. The difference between fair value changes of the excluded component and the amount amortized is recognized in other comprehensive income (loss).

Cash Flow Hedges

Foreign Currency Forward Contracts: We enter into intercompany foreign currency forward contracts ("intercompany derivatives") with our wholly-owned subsidiaries in our EMEA region in order to hedge certain forecasted revenues and expenses denominated in currencies other than the U.S. Dollar (primarily the British Pound and the Euro). Simultaneously, we enter into foreign currency forward contracts with unrelated third parties to externally hedge the net exposure created by such intercompany derivatives. We designate the intercompany derivatives as cash flow hedges. We do not exclude any components from the assessment of hedge effectiveness and the change in fair value of these derivatives is recognized in other comprehensive income (loss) until the hedged transaction occurs.

As of December 31, 2024, our foreign currency forward contracts had maturity dates ranging from January 2025 to December 2026 and we had a net gain of $38 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 forward contracts 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.

Cross-currency Interest Rate Swaps: We 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

F-32

EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

variable-rate debt and our U.S. dollar-denominated fixed-rate debt issued by our foreign subsidiaries. As of December 31, 2024, our cross-currency interest rate swaps had maturity dates ranging from March 2026 to June 2034. We had a net gain of $13 million recorded within accumulated other comprehensive income (loss) to be reclassified to interest expense in the next 12 months. As of December 31, 2023, our cross-currency interest rate swaps had maturity dates of March 2026. We had an insignificant net gain recorded within accumulated other comprehensive income (loss) to be reclassified to interest expense in the next 12 months. We use the spot method to assess hedge effectiveness. Fair value changes from spot rates are recognized in other comprehensive income (loss) initially and immediately reclassified to earnings to offset the gain or loss from remeasuring the associated debt. We exclude time value and cross currency basis spread from the assessment of hedge effectiveness and recognize the excluded component in interest expense through the swap accrual process. The difference between fair value changes of the excluded component and the amount amortized is recognized in other comprehensive income (loss).

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 December 31, 2024 and 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 December 31, 2024 and 2023, we had a net gain of $3 million and $1 million, respectively, recorded within accumulated other comprehensive income (loss) to be reclassified to interest expense in the next 12 months for interest rate locks.

Derivatives Not Designated as Hedging Instruments

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 hedging instruments. Gains and losses subsequent to the de-designation are recognized in other income (expense).

F-33

EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Notional Amounts and Fair Value of Derivative Instruments

The following table presents the composition of derivative instruments recognized in our consolidated balance sheets, excluding accrued interest, as of December 31 (in millions):


	2024						2023
			Fair Value						Fair Value
	Notional Amount (1)		Assets (2)		Liabilities (3)		Notional Amount (1)		Assets (2)		Liabilities (3)
Designated as hedging instruments:
Net investment hedges
Foreign currency forward contracts	$	966	$	39	$	17	$	887	$	3	$	17
Cross-currency interest rate swaps	1,986		189		1		3,121		132		—
Cash flow hedges
Foreign currency forward contracts	1,365		53		—		1,154		2		14
Cross-currency interest rate swaps	1,030		48		—		280		36		—

Total designated as hedging	5,347		329		18		5,442		173		31

Not designated as hedging instruments:
Foreign currency forward contracts	3,536		80		9		3,053		4		70
Cross-currency interest rate swaps	1,395		182		45		1,061		80		—
Total not designated as hedging	4,931		262		54		4,114		84		70
Total Derivatives	$	10,278	$	591	$	72	$	9,556	$	257	$	101

(1)Excludes embedded derivatives.

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

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

Impact on Accumulated Other Comprehensive Income (Loss)

The pre-tax gains (losses) from hedging instruments recognized in accumulated other comprehensive income (loss) for the years ended December 31 were as follows (in millions):


	2024		2023		2022
Net investment hedges:
Foreign currency debt	$	68	$	(54)	$	160
Foreign currency forward contracts (included component)	66		(9)		27
Foreign currency forward contracts (excluded component)	2		3		(2)
Cross-currency interest rate swaps (included component)	149		(73)		277
Cross-currency interest rate swaps (excluded component)	4		1		(36)
Total	$	289	$	(132)	$	426

Cash flow hedges:
Foreign currency forward contracts	$	65	$	(17)	$	(9)
Cross-currency interest rate swaps (excluded component)	(17)		(2)		(2)
Interest rate locks	(1)		(5)		49
Total	$	47	$	(24)	$	38

F-34

EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Impact on Earnings

The gains (losses) from derivative instruments recognized in earnings, and location of such gains (losses) in the consolidated statements of operations for the years ended December 31 were as follows (in millions):


	Location of gain (loss)	2024		2023		2022
Net investment hedges:
Foreign currency forward contracts (excluded component)	Interest expense	$	10	$	2	$	—
Cross-currency interest rate swaps (excluded component)	Interest expense	27		45		50
Total		$	37	$	47	$	50

Cash flow hedges:
Foreign currency forward contracts	Revenues	$	11	$	(9)	$	148
Foreign currency forward contracts	Costs and operating expenses	(6)		15		(72)
Cross-currency interest rate swaps (excluded component)	Interest expense	8		(1)		(1)
Cross-currency interest rate swaps (included component)	Other income (expense)	29		17		22
Interest rate locks	Interest Expense	1		1		—
Total		$	43	$	23	$	97

Non designated hedges:
Embedded derivatives (1)	Revenues	$	—	$	—	$	(1)
Foreign currency forward contracts (1)	Revenues	—		—		(1)
Foreign currency forward contracts	Other income (expense)	154		(20)		138
Cross-currency interest rate swaps	Other income (expense)	18		6		—
Total		$	172	$	(14)	$	136

(1)Embedded derivatives were designated as net investment hedges beginning March 31, 2022. Prior to March 31, 2022, we entered into foreign currency forward contracts to economically hedge these embedded derivatives.

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 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 December 31, 2024 and 2023 (in millions):


	Gross Amounts		Gross Amounts Offset in the Balance Sheet		Net Amounts		Gross Amounts Not Offset in the Balance Sheet		Net
December 31, 2024
Derivative assets	$	605	$	—	$	605	$	(75)	$	530
Derivative liabilities	79		—		79		(75)		4

December 31, 2023
Derivative assets	$	282	$	—	$	282	$	(56)	$	226
Derivative liabilities	112		—		112		(56)		56

F-35

EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

8. 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, including indicative pricing from third parties for similar instruments and asset-specific yield adjustments for elements such as credit risk.

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


	December 31, 2024											December 31, 2023
	Fair Value			Fair Value Measurement Using								Fair Value		Fair Value Measurement Using
			Level 1			Level 2			Level 3			Level 1		Level 2		Level 3
Assets:
Money market funds (1)	$	2,401		$	2,401		$	—		$	—	$	1,364	$	1,364	$	—	$	—
Time deposits (2)	642			115			527			—		240		240		—		—
Loan receivable (3)	280			—			—			280		—		—		—		—
Derivative instruments (4)	591			—			591			—		257		—		257		—
Total	$	3,914		$	2,516		$	1,118		$	280	$	1,861	$	1,604	$	257	$	—
Liabilities:
Derivative instruments (4)	$	72		$	—		$	72		$	—	$	101	$	—	$	101	$	—
Mortgage and loans payable (5)	654			—			654			—		684		—		684		—
Senior notes (5)	13,342			12,851			491			—		11,740		11,166		574		—
Total	$	14,068		$	12,851		$	1,217		$	—	$	12,525	$	11,166	$	1,359	$	—

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

(2)Instruments are included within cash and cash equivalents and short-term investments in the consolidated balance sheets, and are measured at amortized cost.

(3)Instruments are included within other assets in the consolidated balance sheets, and are measured at amortized cost. Refer to Note 15.

(4)Instruments are included within other current assets, other assets, other current liabilities and other liabilities in the consolidated balance sheets, and are measured at fair value. Refer to Note 7.

(5)Include current and non-current portions and are measured at amortized cost. Refer to Note 10.

F-36

EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

9. Leases

Significant Lease Transactions

The following table summarizes the significant lease transactions during the year ended December 31, 2024 (in millions):


				Renewal/Termination Options excluded (1)				Net Incremental (2)
Lease	Quarter	Transaction			Lease Classification		ROU assets			ROU liabilities
Tokyo 15 ("TY15") new data center lease	Q3	New lease with a 20-year term		Two 10-year renewal options		Finance Lease		$	109		$	109
			Operating Lease	53		53

(1) These renewal/termination options are not included in determining the lease terms as we are not reasonably certain to exercise them at this time.

(2) The net incremental amounts represent the adjustments to the right-of-use ("ROU") assets and liabilities recorded during the quarter that the transactions were entered.

Lease Expenses

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


	Years Ended December 31,
	2024		2023		2022
Finance lease cost
Amortization of right-of-use assets (1)	$	181	$	167	$	161
Interest on lease liabilities	113		113		112
Total finance lease cost	294		280		273

Operating lease cost	229		243		214
Variable lease cost	79		62		41
Total lease cost	$	602	$	585	$	528

(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 consolidated statements of operations.

In addition, we recorded impairment charges of $38 million on operating lease right-of-use assets in the Asia-Pacific region during the fourth quarter of 2024 as described in Note 17.

F-37

EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Other Information

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


	Years Ended December 31,
	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	109	$	110	$	110
Operating cash flows from operating leases	231		231		197
Financing cash flows from finance leases	140		149		134

Right-of-use assets obtained in exchange for lease obligations: (1)
Finance leases	$	213	$	209	$	294
Operating leases	194		211		355


	As of December 31,
	2024			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)	$	2,158		$	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 December 31, 2024 and 2023, we recorded accumulated amortization of finance lease right-of-use assets of $964 million and $870 million, respectively. Finance lease assets are recorded within property, plant and equipment, net on the consolidated balance sheets.

Maturities of Lease Liabilities

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


Year ended December 31,	Operating Leases		Finance Leases		Total
2025	210		301		511
2026	217		256		473
2027	197		260		457
2028	169		249		418
2029	139		240		379
Thereafter	1,097		2,004		3,101
Total lease payments	2,029		3,310		5,339

Less imputed interest	(554)		(1,035)		(1,589)
Total	$	1,475	$	2,275	$	3,750

We entered into agreements with various landlords primarily to lease data center spaces and ground leases which have not yet commenced as of December 31, 2024. These leases will commence between 2025 and 2026, with lease terms of 2 to 30 years and total lease commitments of approximately $210 million.

F-38

EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

10. Debt Facilities

Mortgage and Loans Payable

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


	2024		2023
Term loans	$	628	$	643
Mortgage payable and other loans payable	21		29
	649		672
Less amount representing unamortized debt discount and debt issuance cost	—		(1)
	649		671
Less current portion	(5)		(8)
	$	644	$	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 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 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 December 31, 2024 and 2023, the total amounts outstanding under the 2022 Term Loan Facility, net of debt issuance costs, were $625 million and $636 million, respectively.

As of December 31, 2024, we had 43 irrevocable letters of credit totaling $69 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 December 31, 2024 and December 31, 2023, unamortized debt issuance costs for the 2022 Revolving Facility of $3 million and $5 million, respectively, were presented in other assets in the consolidated balance sheets.

F-39

EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Senior Notes

Our senior notes consisted of the following as of December 31 (in millions):


			2024				2023
Senior Notes	Issuance Date	Maturity Date	Amount		Effective Rate		Amount		Effective Rate
2.625% Senior Notes due 2024	November 2019	November 2024	$	—	—	%	$	1,000	2.79	%
1.250% Senior Notes due 2025	June 2020	July 2025	500		1.46	%	500		1.46	%
1.000% Senior Notes due 2025	October 2020	September 2025	700		1.18	%	700		1.18	%
1.450% Senior Notes due 2026	May 2021	May 2026	700		1.64	%	700		1.64	%
2.900% Senior Notes due 2026	November 2019	November 2026	600		3.04	%	600		3.04	%
0.250% Euro Senior Notes due 2027	March 2021	March 2027	518		0.45	%	552		0.45	%
1.800% Senior Notes due 2027	June 2020	July 2027	500		1.96	%	500		1.96	%
1.550% Senior Notes due 2028	October 2020	March 2028	650		1.67	%	650		1.67	%
2.000% Senior Notes due 2028	May 2021	May 2028	400		2.21	%	400		2.21	%
2.875% Swiss Franc Senior Notes due 2028	September 2023	September 2028	331		3.05	%	357		3.05	%
1.558% Swiss Franc Senior Notes due 2029	September 2024	September 2029	110		1.79	%	—		—	%
3.200% Senior Notes due 2029	November 2019	November 2029	1,200		3.30	%	1,200		3.30	%
2.150% Senior Notes due 2030	June 2020	July 2030	1,100		2.27	%	1,100		2.27	%
3.250% Euro Senior Notes due 2031	November 2024	March 2031	673		3.46	%	—		—	%
2.500% Senior Notes due 2031	May 2021	May 2031	1,000		2.65	%	1,000		2.65	%
3.900% Senior Notes due 2032	April 2022	April 2032	1,200		4.07	%	1,200		4.07	%
1.000% Euro Senior Notes due 2033	March 2021	March 2033	622		1.18	%	662		1.18	%
3.650% Euro Senior Notes due 2033	September 2024	September 2033	622		3.78	%	—		—	%
5.500% Senior Notes due 2034	May 2024	June 2034	750		5.74	%	—		—	%
3.625% Euro Senior Notes due 2034	November 2024	November 2034	518		3.75	%	—		—	%
2.000% Japanese Yen Series A Notes due 2035	March 2023	March 2035	239		2.07	%	267		2.07	%
2.130% Japanese Yen Series C Notes due 2035	March 2023	March 2035	94		2.20	%	105		2.20	%
2.370% Japanese Yen Series B Notes due 2043	March 2023	March 2043	65		2.42	%	72		2.42	%
2.570% Japanese Yen Series D Notes due 2043	March 2023	March 2043	29		2.62	%	32		2.62	%
2.570% Japanese Yen Series E Notes due 2043	February 2023	March 2043	64		2.62	%	71		2.62	%
3.000% Senior Notes due 2050	June 2020	July 2050	500		3.09	%	500		3.09	%
2.950% Senior Notes due 2051	October 2020	September 2051	500		3.00	%	500		3.00	%
3.400% Senior Notes due 2052	May 2021	February 2052	500		3.50	%	500		3.50	%
			14,685				13,168
Less amount representing unamortized debt discount and debt issuance cost			(123)				(108)
			14,562				13,060
Less current portion			(1,199)				(998)
			$	13,363			$	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, at the exchange rate in effect on that date, aggregate principal amount of 2.570% senior notes due March 8, 2043.

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EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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

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, 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.

5.500% Senior Notes due 2034

On May 30, 2024, we issued $750 million aggregate principal amount of 5.500% senior notes due June 15, 2034 (the "2034 Notes"). Interest on the notes is payable semi-annually in arrears on June 15 and December 15 of each year, commencing on December 15, 2024. Total debt discount and debt issuance costs related to the 2034 Notes were $14 million.

3.650% Euro Senior Notes due 2033

On September 3, 2024, we issued €600 million, or approximately $664 million, at the exchange rate in effect on that date, aggregate principal amount of 3.650% senior notes due September 3, 2033 (the "2033 Euro Notes"). Interest on the notes is payable annually in arrears on September 3 of each year, commencing on September 3, 2025. Total debt discount and debt issuance costs related to the 2033 Euro Notes were $6 million.

1.558% Swiss Franc Senior Notes due 2029

On September 4, 2024, we issued CHF100 million, or approximately $118 million, at the exchange rate in effect on that date, aggregate principal amount of 1.558% senior notes due September 4, 2029 (the "2029 CHF Notes"). Interest on the notes is payable annually in arrears on September 4 of each year, commencing on September 4, 2025. Total debt issuance costs related to the 2029 CHF Notes were insignificant.

3.250% Euro Senior Notes due 2031 and 3.625% Euro Senior Notes due 2034

On November 22, 2024, we issued €650 million, or approximately $706 million, at the exchange rate in effect on that date, aggregate principal amount of 3.250% senior notes due March 15, 2031 (the "2031 Euro Notes") and €500 million, or approximately $543 million, at the exchange rate in effect on that date, aggregate principal amount of 3.625% senior notes due November 22, 2034 (the "2034 Euro Notes"). Interest on the 2031 Euro Notes is payable annually in arrears on March 15 of each year, commencing on March 15, 2025. Interest on the 2034 Euro Notes is payable annually in arrears on November 22 of each year, commencing on November 22, 2025. Total debt discounts and debt issuance costs related to the 2031 and 2034 Euro Notes were $8 million and $6 million, respectively.

All of our senior notes are unsecured and rank equal in right of payment to our existing or future senior indebtedness and senior in right of payment to our existing and future subordinated indebtedness. Interest on the senior notes is paid semi-annually in arrears, with the exception of our Euro senior notes and Swiss Franc notes which are paid annually in arrears. The senior notes are effectively subordinated to all of the existing and future secured debt, including debt outstanding under any bank facility or secured by any mortgage, to the extent of the assets securing such debt. They are also structurally subordinated to any existing and future indebtedness and other liabilities (including trade payables) of any of our subsidiaries.

Each series of senior notes is governed by an indenture and a supplemental indenture, or a purchase agreement between us and a trustee or a note registrar. These supplemental indentures contain covenants that limit our ability and the ability of our subsidiaries to, among other things:

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EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

incur liens;
enter into sale-leaseback transactions; and
merge or consolidate with any other person.

As of December 31, 2024, we are in compliance with all covenants. Subject to compliance with the limitations described above, we may issue an unlimited principal amount of additional notes at later dates under the same indenture as the senior notes.

We are not required to make any mandatory redemption with respect to the senior notes; however, upon the event of a change in control, we may be required to offer to purchase the senior notes.

Optional Redemption

With respect to the notes listed below, we may redeem at our election, at any time or from time to time, some or all of the notes of any series before they mature. The redemption price will equal the sum of (1) an amount equal to 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest up to, but not including, the redemption date and (2) a make-whole premium. If the notes are redeemed on or after the date listed in the table below (the "First Par Call Date"), the redemption price will not include a make-whole premium for the applicable notes.


Senior Notes Description						First Par Call Date
1.250% Senior Notes due 2025						June 15, 2025
1.000% Senior Notes due 2025						August 15, 2025
1.450% Senior Notes due 2026						April 15, 2026
2.900% Senior Notes due 2026						September 18, 2026
0.250% Euro Senior Notes due 2027						January 15, 2027
1.800% Senior Notes due 2027						May 15, 2027
1.550% Senior Notes due 2028						January 15, 2028
2.000% Senior Notes due 2028						March 15, 2028
2.875% Swiss Franc Senior Notes due 2028						June 12, 2028
1.558% Swiss Franc Senior Notes due 2029						June 4, 2029
3.200% Senior Notes due 2029						August 18, 2029
2.150% Senior Notes due 2030						April 15, 2030
3.250% Euro Senior Notes due 2031						January 15, 2031
2.500% Senior Notes due 2031						February 15, 2031
3.900% Senior Notes due 2032						January 15, 2032
1.000% Euro Senior Notes due 2033						December 15, 2032
3.650% Euro Senior Notes due 2033						June 3, 2033
5.500% Senior Notes due 2034						March 15, 2034
3.625%% Euro Senior Notes due 2034						August 22, 2034
2.000% Japanese Yen Series A Notes due 2035						March 8, 2035
2.130% Japanese Yen Series C Notes due 2035						March 8, 2035
2.370% Japanese Yen Series B Notes due 2043						March 8, 2043
2.570% Japanese Yen Series D Notes due 2043						March 8, 2043
2.570% Japanese Yen Series E Notes due 2043						March 8, 2043
3.000% Senior Notes due 2050						January 15, 2050
2.950% Senior Notes due 2051						March 15, 2051
3.400% Senior Notes due 2052						August 15, 2051

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EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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 December 31, 2024 (in millions):


Years ending:
2025	1,205
2026	1,305
2027	1,648
2028	1,385
2029	1,315
Thereafter	8,476
	$	15,334

Interest Charges

The following table sets forth total interest costs incurred, and total interest costs capitalized for the years ended December 31 (in millions):


	2024		2023		2022
Interest expense	$	457	$	402	$	356
Interest capitalized	36		26		18
Interest charges incurred	$	493	$	428	$	374

Total interest paid in cash, net of capitalized interest, during the years ended December 31, 2024, 2023 and 2022 was $486 million, $445 million and $412 million, respectively.

11. Stockholders' Equity

Our authorized share capital is 300,000,000 shares of common stock and 100,000,000 shares of preferred stock, of which 25,000,000 is designated Series A, 25,000,000 is designated as Series A-1 and 50,000,000 is undesignated. As of December 31, 2024 and 2023, we had no preferred stock issued and outstanding.

Common Stock

In October 2020, we established an "at the market" equity offering program (the "2020 ATM Program"), under which we could, from time to time, offer and sell shares of our common stock to or through sales agents up to an aggregate of $1.5 billion. In February 2022, we entered into a forward sale amendment to the 2020 ATM Program, under which we could, from time to time, offer and sell shares under the equity distribution agreement pursuant to forward sale transactions (the "Equity Forward Amendment"). In November 2022, we established a successor ATM program, also with substantially the same terms as the Equity Forward Amendment noted above, under which we may, from time to time, offer and sell on a spot or forward basis up to an aggregate of $1.5 billion of our common stock to or through sales agents in "at the market" transactions (the "2022 ATM Program").

In October 2024, we established a program to succeed the 2022 ATM Program, under which we may, from time to time, offer and sell on a spot or forward basis up to an aggregate of $2.0 billion of our common stock to or through sales agents in "at the market" transactions (the "2024 ATM Program"). The forward sale agreements provide three settlement alternatives to us: physical settlement, cash settlement or net share settlement. In accordance with ASC 815, the forward sale agreements are classified as equity for balance sheet purposes.

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EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Forward sale activity under the 2020, 2022 and 2024 ATM Programs is summarized as follows ($ in millions except per share data; shares in thousands):


	Contractual Maturity Dates	Execution Date	Number of Shares (1)	Weighted Average Price per Share (2)		Settlement Value (2)
Outstanding, December 31, 2022	February 2023 to November 2023		458	$	657.75	$	302
Forward Sale Agreements Executed	February 2024 to December 2024	May 2023 to December 2023	1,208	767.12		926
Forward Sale Shares Physically Settled	February 2023 to March 2024	February 2023 to November 2023	(1,023)	718.59		735


Outstanding, December 31, 2023	November 2024		643	$	776.23	$	499

Forward Sale Shares Physically Settled	November 2024 to December 2024	September 2024	(643)	790.41		509
Outstanding, December 31, 2024	November 2024		—	$	—	$	—

(1)For agreements settled, the amount represents the actual number of shares issued. For agreements executed and outstanding, the amount represents the number of shares that we would issue upon physical settlement.

(2)For agreements settled, the value represents the actual weighted average settlement value, net of commissions and other offering expenses. For agreements executed and outstanding, the value represents the forward amount that we would receive upon physical settlement as of that date and will be subject to adjustments for a discount rate factor equal to a specified benchmark rate less a spread minus scheduled dividends during the terms of the agreements.

During the year ended December 31, 2024, we sold 569,382 shares on a spot basis under the 2022 ATM Program for approximately $467 million, net of commissions and other offering expenses, and we sold 755,298 shares on a spot basis under the 2024 ATM Program for approximately $697 million, net of commissions and other offering expenses.

As of December 31, 2024, we fully utilized the remaining common stock available for sale under the 2020 and 2022 ATM Programs and had approximately $1.3 billion of common stock available for sale under the 2024 ATM Program.

As of December 31, 2024, we had reserved the following authorized, but unissued shares of common stock for future issuances (in thousands):


Common stock options and restricted stock units			3,290
Common stock employee purchase plans			2,197
Total			5,487

Redeemable Non-controlling Interest

On April 3, 2023, we issued additional shares in our Indonesian operating entity to a third party investor for $25 million, which resulted in the third party investor owning a 25% interest in the entity.

The Indonesian operating entity is a VIE because it does not have sufficient funds from its operations to be self-sustaining. We provide certain management services to the entity and earn fees for the performance of such services. We have the power to direct the activities that most significantly impact the economic performance of the entity and have concluded that we are its primary beneficiary.

Under the terms of the shareholders’ agreement, the investor may put its 25% ownership stake in the entity to us for a maximum exercise price of $25 million, subject to certain contingent conditions. Accordingly, we present the investor’s contingently redeemable non-controlling interest ("NCI") outside of permanent equity at the higher of its maximum redemption amount of $25 million and its balance after attribution of gains and losses in the consolidated balance sheets. There were no changes in the carrying value of the redeemable NCI for the year ended December 31, 2024.

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EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The following table presents the assets and liabilities of the Indonesian VIE, which were included in other assets and other liabilities on the consolidated balance sheets as of December 31 (in millions):


Balance Sheet	2024		2023
Cash and cash equivalents	$	16	$	20
Property, plant and equipment, net	25		8
Other	5		2
Total assets	$	46	$	30
Total liabilities	$	5	$	3

The income and losses attributable to us as well as to the redeemable NCI from the Indonesian VIE were insignificant for the year ended December 31, 2024 and 2023.

Accumulated Other Comprehensive Loss

The changes in accumulated other comprehensive loss, net of tax, by components are as follows (in millions):


	December 31, 2021		Net Change		December 31, 2022		Net Change		December 31, 2023		Net Change		December 31, 2024
Foreign currency translation adjustment ("CTA") gain (loss)	$	(1,068)	$	(770)	$	(1,838)	$	250	$	(1,588)	$	(772)	$	(2,360)
Unrealized gain (loss) on cash flow hedges (1)	(6)		40		34		(19)		15		32		47
Net investment hedge CTA gain (loss) (1)	(10)		426		416		(132)		284		295		579
Net actuarial loss on defined benefit plans (2)	(1)		—		(1)		—		(1)		—		(1)
	$	(1,085)	$	(304)	$	(1,389)	$	99	$	(1,290)	$	(445)	$	(1,735)

(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 plans are mandated by law. We do not have any defined benefit plans in any other countries.

Changes in foreign currencies can have a significant impact to our consolidated balance sheets (as evidenced above in our cumulative 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 less U.S. dollars when the U.S. dollar strengthens. As of December 31, 2024, 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, 2023. Because of this, the U.S. dollar had an overall unfavorable impact on our 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 year ended December 31, 2024 as reflected in the above table. The volatility of the U.S. dollar as compared to the other currencies in which we operate could have a significant impact on our consolidated financial position and results of operations including the amount of revenue that we report in future periods.

Dividends

During the years ended December 31, 2024, 2023 and 2022, our Board of Directors declared quarterly dividends whose treatment for federal income tax purposes were as follows:


Declaration Date	Record Date	Payment Date	Total Distribution (1)		Nonqualified Ordinary Dividend (2)		Total Distribution Amount
			(per share)				(in millions)
Fiscal 2024
2/14/2024	2/28/2024	3/20/2024	$	4.260000	$	4.260000	$	402
5/8/2024	5/22/2024	6/19/2024	4.260000		4.260000		405
8/7/2024	8/21/2024	9/18/2024	4.260000		4.260000		405
10/30/2024	11/13/2024	12/11/2024	4.260000		4.260000		412
Total			$	17.040000	$	17.040000	$	1,624

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EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)


Fiscal 2023
2/15/2023	3/7/2023	3/22/2023	$	3.410000	$	3.410000	$	319
5/3/2023	5/24/2023	6/21/2023	3.410000		3.410000		319
8/2/2023	8/23/2023	9/20/2023	3.410000		3.410000		319
10/25/2023	11/15/2023	12/13/2023	4.260000		4.260000		402
Total			$	14.490000	$	14.490000	$	1,359

Fiscal 2022
2/16/2022	3/7/2022	3/23/2022	$	3.100000	$	3.100000	$	282
4/27/2022	5/18/2022	6/15/2022	3.100000		3.100000		282
7/27/2022	8/17/2022	9/21/2022	3.100000		3.100000		286
11/2/2022	11/16/2022	12/14/2022	3.100000		3.100000		287
Total			$	12.400000	$	12.400000	$	1,137

(1)Common stock dividends are characterized for federal income tax purposes as nonqualified ordinary dividend, qualified ordinary dividend, capital gains or return of capital. During the years ended December 31, 2024, 2023 and 2022, we did not classify any portion of the distributions as qualified ordinary dividend, capital gains or return of capital.

(2)All nonqualified ordinary dividends are eligible for the 20% deduction generally allowable to non-corporate shareholders under Internal Revenue Code Section 199A.

In addition, as of December 31, 2024, we recorded a short-term dividend payable of $16 million and a long-term dividend payable of $13 million related to RSUs that have not yet vested. As of December 31, 2023, we recorded a short-term dividend payable of $14 million and a long-term dividend payable of $12 million related to RSUs that have not yet vested.

12. Stock-Based Compensation

Equity Compensation Plans

As of December 31, 2024, our equity compensation plans included:

2004 Employee Stock Purchase Plan (the "2004 Purchase Plan")**: The 2004 Purchase Plan permits eligible employees to purchase common stock on favorable terms via payroll deductions of up to 15% of the employee's cash compensation, subject to certain share and statutory dollar limits. Two overlapping offering periods commence during each calendar year, on each of February 15 and August 15 or such other periods or dates as determined by the Talent, Culture and Compensation Committee of the Board of Directors (the "Compensation Committee") from time to time, and the offering periods last up to 24 months with a purchase date every 6 months. The price of each share purchased is 85% of the lower of a) the fair value per share of common stock on the last trading day before the commencement of the applicable offering period or b) the fair value per share of common stock on the purchase date.
2020 Equity Incentive Plan: In 2020, both our Board of Directors and our stockholders approved the 2020 Equity Plan, which provides for the grant of stock options, including incentive stock options and nonqualified stock options, stock appreciation rights, RSAs, RSUs, other stock-based incentive awards, dividend equivalents, and cash-based incentive awards. The 2020 Equity Plan's awards may be granted to employees, non-employee members of the Board and consultants. Equity awards granted under the 2020 Equity Incentive Plan generally vest over four years. The maximum numbers of shares of our common stock available for issuance under the 2020 Equity Plan is equal to the sum of 4 million shares and the shares transferred from the 2000 Equity Incentive Plan.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The Equity compensation plans are administered by the Compensation Committee, which may terminate or amend these plans, with approval of the stockholders as may be required by applicable law, at any time. As of December 31, 2024, shares reserved and available for issuance under the equity compensation plans were as follows (in thousands):


	Shares reserved	Shares available for grant
2004 Purchase Plan	5,392	2,197
2020 Equity Incentive Plan	3,290	1,858

Employee Stock Purchase Plan

We provide the following disclosures for the 2004 Purchase Plan as of December 31 (shares in thousands):


	2024		2023		2022
Weighted-average purchase price per share	$	626.35	$	572.59	$	568.29
Weighted-average grant date fair value per award for shares purchased	$	204.93	$	206.83	$	202.61
Number of shares purchased	148		152		144

We use the Black-Scholes option-pricing model to determine the fair value of shares under the 2004 Purchase Plan with the following assumptions during the years ended December 31:


	2024		2023		2022
Range of dividend yield	1.98% - 2.10%		1.69% - 1.78%		1.48% - 1.55%
Range of risk-free interest rate	3.89% - 5.27%		4.57% - 5.30%		0.72% - 3.06%
Range of expected volatility	21.31% - 29.82%		26.02% - 34.93%		25.73% - 37.20%
Weighted-average expected volatility	26.88	%	30.48	%	30.34	%
Weighted-average expected life (in years)	1.17		1.06		1.06

Restricted Stock Units

Since 2008, we primarily grant RSUs to our employees, including executives and non-employee directors. We generally grant RSUs that have a service condition only or have both a service and performance condition. Each RSU is not considered issued and outstanding and does not have voting rights until it is converted into one share of our common stock upon vesting. RSU activity is summarized as follows:


	Number of Shares Outstanding (in thousands)	Weighted Average Grant Date Fair Value per Share		Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value (1) (in millions)
RSUs outstanding, December 31, 2021	1,358	$	594.27
RSUs granted	912	661.43
RSUs released, vested	(669)	576.62
RSUs canceled	(155)	624.98
RSUs outstanding, December 31, 2022	1,446	641.51
RSUs granted	991	699.07
RSUs released, vested	(681)	644.90

RSUs canceled	(204)	640.68
RSUs outstanding, December 31, 2023	1,552	676.89
RSUs granted	842	884.10
RSUs released, vested	(688)	714.66

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EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)


RSUs canceled			(274)						738.15
RSUs outstanding, December 31, 2024			1,432						$	768.84					1.22						$	1,350

(1)The intrinsic value is calculated based on the closing market value of the stock as of December 31, 2024.

The total fair value of RSUs vested and released during the years ended December 31, 2024, 2023 and 2022 was $594 million, $498 million and $462 million, respectively.

Stock-Based Compensation Expense

The following table presents, by operating expense, our stock-based compensation expense recognized in our consolidated statement of operations for the years ended December 31 (in millions):


	2024		2023		2022
Cost of revenues	$	58	$	48	$	45
Sales and marketing	94		86		83
General and administrative	310		273		276
Total	$	462	$	407	$	404

Our stock-based compensation expense recognized in the consolidated statement of operations was comprised of the following types of equity awards for the years ended December 31 (in millions):


	2024		2023		2022

RSUs	$	438	$	387	$	360
RSAs	—		2		10
Employee stock purchase plan	24		18		34
Total	$	462	$	407	$	404

During the years ended December 31, 2024, 2023 and 2022, we capitalized $77 million, $60 million and $46 million, respectively, of stock-based compensation expense as construction in progress in property, plant and equipment.

As of December 31, 2024, the total stock-based compensation cost related to unvested equity awards not yet recognized, net of estimated forfeitures, totaled $850 million, which is expected to be recognized over a weighted-average period of 2.17 years.

13. Income Taxes

Income before income taxes is attributable to the following geographic locations for the years ended December 31 (in millions):


	2024		2023		2022
Domestic	$	147	$	278	$	334
Foreign	828		846		495
Income before income taxes	$	975	$	1,124	$	829

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EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The tax expenses for income taxes consisted of the following components for the years ended December 31 (in millions):


	2024		2023		2022
Current:
Federal	$	1	$	—	$	2
State and local	(3)		—		(1)
Foreign	(189)		(150)		(83)
Subtotal	(191)		(150)		(82)
Deferred:
Federal	—		—		(16)
State and local	2		—		(5)
Foreign	28		(5)		(21)
Subtotal	30		(5)		(42)
Income tax expense	$	(161)	$	(155)	$	(124)

State and foreign taxes not based on income are included in general and administrative expenses and the aggregate amounts were not significant for the years ended December 31, 2024, 2023 and 2022.

Income tax benefit (expenses) for the years ended December 31, 2024, 2023 and 2022 differed from the amounts computed by applying the U.S. federal income tax rate of 21% to pre-tax income as a result of the following for the years ended December 31 (in millions):


	2024		2023 (1)		2022 (1)
Federal tax at statutory rate	$	(205)	$	(236)	$	(174)
State and local tax expense	(1)		—		(6)
Foreign income tax rate differential	(12)		(14)		(12)
Non-deductible expenses	(10)		(6)		(6)
Stock-based compensation expense	(8)		(9)		(8)
Change in valuation allowance	(72)		(32)		(59)
Foreign financing activities	(2)		(4)		(6)


Uncertain tax positions reserve	11		21		45
Tax adjustments related to REIT	130		132		107

Change in deferred tax adjustments	1		(3)		—
Effect of tax rate change on deferred tax assets	—		(2)		(3)
Other, net	7		(2)		(2)
Total income tax expense	$	(161)	$	(155)	$	(124)

(1)The prior year amounts presented in the table above have been reclassified to conform with the current year presentation, The rate reconciliation item 'Deferred tax assets generated in current year not benefited' has been grouped with 'Change in valuation allowance'.

Our accounting policy is to treat any tax on Global Intangible Low-Taxed Income ("GILTI") inclusions as a current period cost included in the tax expense in the year incurred. We estimate the GILTI inclusion provision will result in no material financial statement impact provided we satisfy our REIT distribution requirement with respect to the GILTI inclusions.

As a result of our conversion to a REIT effective January 1, 2015, it is no longer our intent to indefinitely reinvest undistributed foreign earnings. However, no deferred tax liability has been recognized to account for this change because the expected recovery of the basis difference will not result in material U.S. taxes in the post-REIT conversion periods due to the fact that the majority of our foreign subsidiaries are either QRSs or owned directly by our REIT and QRSs, and the foreign withholding tax effect would be immaterial. We continue to assess the foreign

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EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

withholding tax impact of our current policy and do not believe the distribution of our foreign earnings would trigger any significant foreign withholding taxes, as the majority of the foreign jurisdictions where we operate do not impose withholding taxes on dividend distributions to a corporate U.S. parent.

The types of temporary differences that give rise to significant portions of our deferred tax assets and liabilities are set out below as of December 31 (in millions):


	2024		2023
Deferred tax assets:
Stock-based compensation expense	$	10	$	9
Net unrealized losses	12		11
Operating lease liabilities	217		221
Finance lease liabilities	—		14
Deferred revenue	11		17

Loss carryforwards and tax credits	253		232
Others, net	25		7
Gross deferred tax assets	528		511
Valuation allowance	(277)		(221)
Total deferred tax assets, net	251		290
Deferred tax liabilities:

Finance lease liabilities	(13)		—
Property, plant and equipment	(200)		(253)
Right-of-use assets	(220)		(224)
Deferred income	(5)		(26)
Goodwill	(17)		(3)
Intangible assets	(87)		(116)
Total deferred tax liabilities	(542)		(622)
Net deferred tax liabilities	$	(291)	$	(332)

The tax basis of REIT assets, excluding investments in TRSs, is greater than the amounts reported for such assets in the accompanying consolidated balance sheet by approximately $3.1 billion as of December 31, 2024.

Our accounting for deferred taxes involves weighing positive and negative evidence concerning the realizability of our deferred tax assets in each taxing jurisdiction. After considering evidence such as the nature, frequency and severity of current and cumulative financial reporting losses, the sources of future taxable income, taxable income in carryback years permitted by the tax laws and tax planning strategies, we concluded that valuation allowances were required in certain jurisdictions. The operations in most of the jurisdictions for which a valuation allowance has been established have a history of significant losses as of December 31, 2024. As such, we do not believe these operations have established a sustained history of profitability and that a valuation allowance is, therefore, necessary. We also provided a valuation allowance against certain gross deferred tax assets in certain taxing jurisdictions as these deferred tax assets are not expected to be realizable in the foreseeable future.

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EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Changes in the valuation allowance for deferred tax assets for the years ended December 31 are as follows (in millions):


	2024		2023		2022
Beginning balance	$	221	$	167	$	101
Amounts from acquisitions	—		10		13

Amounts recognized into income	6		(2)		23
Current increase	57		44		37
Impact of foreign currency exchange	(7)		2		(7)
Ending balance	$	277	$	221	$	167

Our net operating loss carryforwards for federal, state and foreign tax purposes which expire, if not utilized, at various intervals from 2025, are outlined below (in millions):


Expiration Date	Federal		State		Foreign (1) (2)		Total
2025	$	1	$	—	$	8	$	9
2026 to 2028	2		—		50		52
2029 to 2031	—		—		26		26
2032 to 2034	—		—		49		49
2035 to 2037	3		—		20		23
2038 to 2040	—		4		55		59
Thereafter	239		92		570		901
	$	245	$	96	$	778	$	1,119

(1)In certain jurisdictions, the net operating loss carryforwards can only be used to offset a percentage of taxable income in a given year.

(2)If certain substantial changes in the entity's ownership occur, there may be a limitation on the amount of the carryforwards that can be utilized.

As of December 31, 2024, we had tax credit carryforwards of $6 million, which expire if not utilized, from 2025 to 2031. We also had capital losses of $7 million, which can be carried forward indefinitely.

The beginning and ending balances of our unrecognized tax benefits are reconciled below for the years ended December 31 (in millions):


	2024		2023		2022
Beginning balance	$	70	$	89	$	148
Gross increases related to prior year tax positions	—		3		1
Gross decreases related to prior year tax positions	(12)		(17)		(43)
Gross increases related to current year tax positions	7		5		7
Decreases resulting from expiration of statute of limitation	(7)		(10)		(12)
Decreases resulting from settlements	(1)		—		(12)
Ending balance	$	57	$	70	$	89

We recognize interest and penalties related to unrecognized tax benefits within income tax expense in the consolidated statements of operations. We accrued $5 million, $7 million, and $7 million for interest and penalties as of December 31, 2024, 2023 and 2022, respectively.

The unrecognized tax benefits of $57 million as of December 31, 2024, if subsequently recognized, will affect our effective tax rate favorably at the time when such a benefit is recognized.

Due to various tax years open for examination and the ongoing tax audits and inquiries by the tax authorities in different jurisdictions, it is reasonably possible that the balance of unrecognized tax benefits could significantly

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EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

increase or decrease over the next 12 months as we may be subject to additional examinations by the tax authorities, conclude tax settlements or experience a lapse in a statute of limitations. We are currently unable to estimate the range of possible adjustments to the balance of unrecognized tax benefits.

In general, our income tax returns for the years from 2021 through the current year remain open to examination by federal and state taxing authorities. In addition, our tax years of 2018 through the current year remain open and subject to examination by local tax authorities in certain foreign jurisdictions in which we have major operations.

14. Commitments and Contingencies

Purchase Commitments

As a result of our various IBX data center expansion projects, as of December 31, 2024, we were contractually committed for approximately $2.9 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 December 31, 2024, such as commitments to purchase power in select locations through 2025 and thereafter, and other open purchase orders for goods or services to be delivered or provided during 2025 and thereafter. Such other miscellaneous purchase commitments totaled approximately $2.1 billion as of December 31, 2024. For further information on our equity method investment commitments and lease commitments, see Note 5 and Note 9, 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 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 and Loudoun County, Virginia. 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.

We are and may continue to be party to certain legal and regulatory proceedings with respect to various matters. We evaluate the likelihood of an unfavorable outcome of all legal and regulatory proceedings to which we are a party. Contingent liabilities are accrued when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. These judgments are subjective based on the status of the legal or regulatory proceedings, the merits of our defenses and consultation with in-house and external legal counsel. Loss contingencies are generally recorded in other current liabilities in the consolidated balance sheets and legal costs are expensed as incurred and are recorded in general and administrative expenses in the consolidated statement of operations.

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.

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EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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 filed a motion to dismiss the lawsuit on October 10, 2024. The motion was granted in part on January 6, 2025. We intend to continue 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.

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 December 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 December 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

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EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

result, our estimated fair value of these agreements is minimal. We do not have significant liabilities recorded for these agreements as of December 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 December 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 $1.3 billion in total at the exchange rate in effect on December 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 $283 million in total at the exchange rate in effect on December 31, 2024. As of December 31, 2024, the maximum potential amount of our future payments under these guarantees was approximately $246 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 December 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.

15. Related Party Transactions

Joint Venture Related Party Transactions

Concurrent with the closing of the AMER 2 Joint Venture, we entered into a loan agreement (the "AMER 2 Loan") with the AMER 2 Joint Venture, as a lender, with a maximum commitment of $392 million and a maturity date of April 10, 2028. We received an upfront fee of $4 million in connection with the origination of the loan, and earn interest at a contractual rate of 10% per annum on the drawn portion plus an unused commitment fee of 0.75% per annum on the undrawn portion, each payable quarterly. The term of the loan may be extended at the option of the borrower for one additional year subject to an extension fee, and may be prepaid subject to a penalty if such prepayment occurs within the first 18 months of issuance. The AMER 2 Loan is secured by the assets of the AMER 2 Joint Venture, including the SV12 data center site. The equity partners of the AMER 2 Joint Venture have provided limited guarantees in connection with the AMER 2 Loan, which require payments to the lender proportionately upon certain occurrences, such as a shortfall in capital necessary to complete construction or to make interest payments. Additionally, the equity partners may be liable for repayment of up to the entire debt balance upon the occurrence of certain adverse acts such as a non-permitted transfer of the SV12 data center site. The AMER 2 Loan was negotiated at arm's length. We have assessed the credit risk associated with the AMER 2 Loan to be low and the allowance for credit loss as of December 31, 2024 is insignificant. The maximum amount of credit loss we are exposed to is the outstanding principal, plus accrued interest and unused commitment fees. As of December 31, 2024, the total amount outstanding under the AMER 2 Loan, net of the unamortized upfront fee, was $258 million. Additional amounts may be drawn down by the borrower periodically as needed for the continuation of development and other working capital needs.

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, asset management and procurement service agreements. These transactions are generally considered to have been negotiated at arm's length.

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EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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


		Years Ended December 31,
Related Party	Nature of Transaction	2024		2023		2022
EMEA 1 Joint Venture	Income	$	27	$	29	$	39
EMEA 1 Joint Venture	Expenses (1)	16		18		8
VIE Joint Ventures (2)	Income (3)	257		107		40

(1)Primarily consists of rent expenses for a sub-lease agreement with the EMEA 1 Joint Venture for a London data center with a remaining lease term of approximately 15-years as of December 31, 2024.

(2)Expenses from transactions with VIE Joint Ventures were insignificant for the years ended December 31, 2024, 2023 and 2022.

(3)Primarily consists of revenues related to lease and services arrangements as described above and also includes interest income earned on the AMER 2 Loan for the year ended December 31, 2024 of $17 million.

We have also sold certain data center facilities to our Joint Ventures and recognized gains or losses on asset sales as described in Note 5.

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


	EMEA 1 Joint Venture				VIE Joint Ventures
	As of December 31,				As of December 31,
Balance Sheet	2024		2023		2024		2023
Accounts receivable, net	$	4	$	19	$	50	$	23
Other current assets (1)	19		19		128		43
Property, plant and equipment, net (2)	145		97		74		72
Operating lease right-of-use assets	2		2		2		2
Other assets (3)	—		—		302		21
Other current liabilities	5		9		10		6
Finance lease liabilities	164		111		78		75
Operating lease liabilities	2		2		2		2
Other liabilities (4)	48		50		11		—

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

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

(3)As of December 31, 2024, the balance primarily relates to the AMER 2 Loan receivable. As of December 31, 2023, the balance primarily relates to contract assets and other receivables.

(4)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.

Other Related Party Transactions

We have several significant stockholders and other related parties that are also customers and/or vendors. Our other related party transaction activity was as follows (in millions):


	Years ended December 31,
	2024		2023		2022
Revenues	$	218	$	310	$	236
Costs and services	18		38		59

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EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)


	As of December 31,
	2024		2023
Accounts receivable, net	$	15	$	33
Accounts payable	4		—

16. Restructuring and Other Exit Activities

Q4 2024 Restructuring Plan

In November 2024, we initiated a restructuring plan to realign the organization and enable further investment in key priority areas (the "Q4 2024 Restructuring Plan"), resulting in costs of $27 million being incurred during the year ended December 31, 2024. The activities under the Q4 2024 Restructuring Plan were substantially completed by December 31, 2024.

Equinix Metal Wind Down

In November 2024, we announced the decision to make Equinix Metal no longer commercially available as a product and to wind down operations that support this product by June 2026 (the "Equinix Metal Wind Down"). As a result of the Equinix Metal Wind Down, we expect to incur costs of approximately $10 million to $14 million, with $4 million of these costs incurred during the year ended December 31, 2024. We expect substantially all costs under this plan to be incurred and paid by the end of the fourth quarter of 2026. The actual amounts and timing of incremental costs and cash payments may differ from these estimates should we make further decisions which impact the execution of these activities. In addition, we recorded an impairment charge of $160 million associated with the Equinix Metal Wind Down during the year ended December 31, 2024, as described in Note 17.

The following table summarizes costs incurred under the Q4 2024 Restructuring Plan and the Equinix Metal Wind Down, which are included in restructuring charges in our Consolidated Statements of Operations, during the year ended December 31, 2024 (in millions):


Nature of expense	Q4 2024 Restructuring Plan		Equinix Metal Wind Down		Total (1)
Severance and other employee costs	$	19	$	4	$	23
Stock-based compensation expense	3		—		3
Other exit costs	5		—		5
Total	$	27	$	4	$	31

(1)Total restructuring charges were incurred in each of our three regions with $21 million in the Americas, $6 million in EMEA and $4 million in Asia-Pacific.

The following table summarizes the activity in our restructuring accrual, included in other current liabilities in our Consolidated Balance Sheets, for the year ended December 31, 2024 (in millions):


	Q4 2024 Restructuring Plan		Equinix Metal Wind Down		Total
Beginning balance	$	—	$	—	$	—
Charges (1)	24		4		28
Cash payments	(11)		(2)		(13)
Ending balance	$	13	$	2	$	15

**(1)**Excludes stock-based compensation expense which represents non-cash transactions.

We had no restructuring activity during the years ended December 31, 2023 and 2022.

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EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

17. Impairment Charges

Equinix Metal Wind Down

During the fourth quarter of 2024, we identified an indicator that certain assets supporting the sale of our Equinix Metal products may be impaired due to the Equinix Metal Wind Down as described in Note 16. We evaluated the fair value of the asset group, which consisted primarily of hardware, internal-use software, and customer relationships, by determining the fair value in exchange for each class of assets and determined that the carrying amount exceeded the fair value. The significant inputs and assumptions used in the estimate of fair value include broker estimates and liquidation value assumptions. These measurements were classified within Level 3 of the fair value hierarchy as they are not observable. We recorded impairment charges of $131 million and $29 million on property, plant and equipment and intangible assets, respectively, during the fourth quarter of 2024. These impairment charges were recorded in each of our three regions with $127 million in the Americas, $19 million in EMEA and $14 million in Asia-Pacific.

Hong Kong IBX

During the fourth quarter of 2024, we identified an indicator that an IBX asset group in the Asia-Pacific region may be impaired due to current and projected future losses at the site. We evaluated the fair value of the asset group, which consisted primarily of operating lease right-of-use assets, leasehold improvements, and personal property, and determined that the carrying amount exceeded the fair value. The fair value of the right-of-use assets were determined using the income approach. The significant inputs and assumptions used in the estimates of fair value include market rent and sublease rental adjustments. The fair values of the leasehold improvements and personal property were determined based on their fair values in exchange. The significant inputs and assumptions used in the estimate of fair value include broker estimates and liquidation value assumptions. These measurements were classified within Level 3 of the fair value hierarchy as they are not observable. We recorded impairment charges of $38 million and $35 million on operating lease right-of-use assets and property, plant and equipment, respectively, in the Asia-Pacific region during the fourth quarter of 2024.

18. Segment Information

While we have one primary line of business, which is the design, build-out and operation of IBX data centers, we have determined that we have three reportable segments comprised of our Americas, EMEA and Asia-Pacific geographic regions. Each of our three reportable segments are managed by regional presidents and require unique strategies due to the varying microeconomic and macroeconomic conditions within each region. Our chief executive officer is our chief operating decision maker and evaluates performance, makes operating decisions and allocates resources primarily based on our revenues and adjusted EBITDA, both on a consolidated basis and for these three reportable segments. Intercompany transactions between segments are excluded for management reporting purposes.

We define adjusted EBITDA, our measure of segment profit or loss, as net income excluding income tax expense, interest income, interest expense, other income or expense, gain or loss on debt extinguishment, depreciation, amortization, accretion, stock-based compensation expense, restructuring charges, impairment charges, transaction costs and gain or loss on asset sales. The accounting policies of the three segments are the same as those described in the summary of significant accounting policies, except that segment expenses exclude depreciation, amortization and accretion expense and stock-based compensation expense, consistent with the definition of adjusted EBITDA.

The following tables present segment information, including revenue information disaggregated by product lines and segment adjusted EBITDA, and a reconciliation to total consolidated income before income taxes (in millions):


	Year Ended December 31, 2024
	Americas		EMEA		Asia-Pacific		Total
Colocation (1)	$	2,474	$	2,235	$	1,349	$	6,058
Interconnection	885		340		294		1,519
Managed infrastructure	261		138		68		467
Other (1)	27		99		14		140
Recurring revenues	3,647		2,812		1,725		8,184

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EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)


Non-recurring revenues	215		155		194		564
Total revenues (2)	$	3,862	$	2,967	$	1,919	$	8,748
Less:
Segment cost of revenues	1,158		1,190		635		2,983
Other segment items (3)	995		399		274		1,668
Segment adjusted EBITDA	1,709		1,378		1,010		4,097
Reconciliation to income before income taxes:
Depreciation, amortization and accretion expense							(2,011)
Stock-based compensation expense							(462)
Transaction costs							(50)
Restructuring charges							(31)
Impairment charges							(233)
Gain on asset sales							18
Interest income							137
Interest expense							(457)
Other expense							(17)
Loss on debt extinguishment							(16)
Income before income taxes							$	975

(1) Includes some leasing and hedging activities.

(2) Total revenues attributed to the U.S. were $3.3 billion. There was no other country from which we derived revenues that exceeded 10% of our total revenues and no single customer accounted for 10% or greater of our accounts receivable or revenues as at or for the year ended December 31, 2024.

(3) Other segment items for each reportable segment are comprised of general and administrative and sales and marketing expenses, excluding stock-based compensation expense and depreciation, amortization and accretion expense.


	Year Ended December 31, 2023
	Americas		EMEA		Asia-Pacific		Total
Colocation (1)	$	2,364	$	2,112	$	1,289	$	5,765
Interconnection	821		308		266		1,395
Managed infrastructure	250		130		72		452
Other (1)	22		98		13		133
Recurring revenues	3,457		2,648		1,640		7,745
Non-recurring revenues	160		190		93		443
Total revenues (2)	$	3,617	$	2,838	$	1,733	$	8,188
Less:
Segment cost of revenues	1,047		1,199		624		2,870
Other segment items (3)	956		388		272		1,616
Segment adjusted EBITDA	1,614		1,251		837		3,702

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EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)


Reconciliation to income before income taxes:
Depreciation, amortization and accretion expense	(1,844)
Stock-based compensation expense	(407)
Transaction costs	(13)


Gain on asset sales	5
Interest income	94
Interest expense	(402)
Other expense	(11)

Income before income taxes	$	1,124

(1) Includes some leasing and hedging activities.

(2) Total revenues attributed to the U.S. and the United Kingdom were $3.1 billion and $822 million, respectively. There was no other country from which we derived revenues that exceeded 10% of our total revenues and no single customer accounted for 10% or greater of our accounts receivable or revenues as at or for the year ended December 31, 2023.


	Year Ended December 31, 2022
	Americas		EMEA		Asia-Pacific		Total
Colocation (1)	$	2,188	$	1,744	$	1,151	$	5,083
Interconnection	756		268		244		1,268
Managed infrastructure	218		119		78		415
Other (1)	21		75		9		105
Recurring revenues	3,183		2,206		1,482		6,871
Non-recurring revenues	166		136		90		392
Total revenues (2)	$	3,349	$	2,342	$	1,572	$	7,263
Less:
Segment cost of revenues	994		866		574		2,434
Other segment items (3)	833		368		258		1,459
Segment adjusted EBITDA	1,522		1,108		740		3,370
Reconciliation to income before income taxes:
Depreciation, amortization and accretion expense							(1,740)
Stock-based compensation expense							(404)
Transaction costs							(22)


Loss on asset sales							(4)
Interest income							36
Interest expense							(356)
Other expense							(51)

Income before income taxes							$	829

(1) Includes some leasing and hedging activities.

(2) Total revenues attributed to the U.S. were $2.9 billion. There was no other country from which we derived revenues that exceeded 10% of our total revenues and no single customer accounted for 10% or greater of our accounts receivable or revenues as at or for the year ended December 31, 2022.

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EQUINIX, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

We provide the following additional segment disclosures for the years ended December 31 (in millions):


	2024		2023		2022
Depreciation and amortization:
Americas	$	1,119	$	1,001	$	933
EMEA	530		501		458
Asia-Pacific	360		343		346
Total	$	2,009	$	1,845	$	1,737

Capital expenditures:
Americas	$	1,838	$	1,627	$	1,139
EMEA	808		717		751
Asia-Pacific	420		437		388
Total	$	3,066	$	2,781	$	2,278

Our long-lived assets, including property, plant and equipment, net and operating lease right-of-use assets, were located in the following geographic regions as of December 31 (in millions):


	Property, plant and equipment, net				Operating lease right-of-use assets
	2024		2023		2024		2023
Americas (1)	$	9,193	$	8,611	$	389	$	421
EMEA	6,405		6,321		398		368
Asia-Pacific	3,651		3,669		632		660
Total	$	19,249	$	18,601	$	1,419	$	1,449

(1)Property, plant and equipment, net of $7.2 billion and $6.7 billion and operating lease right-of-use assets of $368 million and $398 million were located in the U.S. as of December 31, 2024 and 2023, respectively.

19. Subsequent Events

Declaration of dividends

On February 12, 2025, we declared a quarterly cash dividend of $4.69 per share, which is payable on March 19, 2025 to our common stockholders of record as of the close of business on February 26, 2025.

F-60

EQUINIX, INC.

Schedule III - Schedule of Real Estate and Accumulated Depreciation

As of December 31, 2024

(in millions)


	Initial Costs to Company (1)			Costs Capitalized Subsequent to Acquisition or Lease (2)		Total Costs
	Encumbrances	Land	Buildings and Improvements (3)	Land	Buildings and Improvements (3)	Land	Buildings and Improvements (3)	Accumulated Depreciation (4)	Date of Acquisition or Lease (5)
Americas:
AT1 ATLANTA (METRO)	$—	$—	$—	$—	$309	$—	$309	$(116)	2010
AT4 ATLANTA (METRO)	—	5	20	—	31	5	51	(21)	2017
BG1 BOGOTÁ (METRO), COLOMBIA	—	—	9	1	11	1	20	(8)	2017
BG2 BOGOTÁ (METRO), COLOMBIA	—	4	—	—	46	4	46	(3)	2021
BO2 BOSTON (METRO)	—	3	30	(1)	44	2	74	(25)	2017
CH1 CHICAGO (METRO)	—	—	—	—	122	—	122	(90)	1999
CH2 CHICAGO (METRO)	—	—	—	—	90	—	90	(37)	2005
CH3 CHICAGO (METRO)	—	10	—	—	357	10	357	(184)	2006
CH4 CHICAGO (METRO)	—	—	—	—	148	—	148	(32)	2009
CH7 CHICAGO (METRO)	—	1	11	—	11	1	22	(9)	2017
CL1 CALGARY (METRO), CANADA	—	—	12	—	6	—	18	(9)	2020
CL2 CALGARY (METRO), CANADA	—	—	14	—	3	—	17	(9)	2020
CL3 CALGARY (METRO), CANADA	—	7	69	—	55	7	124	(25)	2020
CU1 CULPEPER (METRO)	—	1	38	—	7	1	45	(24)	2017
CU2 CULPEPER (METRO)	—	1	48	—	17	1	65	(30)	2017
CU3 CULPEPER (METRO)	—	1	37	—	16	1	53	(23)	2017
CU4 CULPEPER (METRO)	—	1	28	—	39	1	67	(22)	2017
DA1 DALLAS (METRO)	—	—	—	—	74	—	74	(45)	2000
DA2 DALLAS (METRO)	—	—	—	—	84	—	84	(43)	2010
DA3 DALLAS (METRO)	—	—	—	—	103	—	103	(53)	2010
DA4 DALLAS (METRO)	—	—	—	—	18	—	18	(13)	2010
DA6 DALLAS (METRO)	—	—	21	—	191	—	212	(76)	2012
DA7 DALLAS (METRO)	—	—	—	—	33	—	33	(25)	2015
DA9 DALLAS (METRO)	—	1	15	—	9	1	24	(11)	2017
DA11 DALLAS (METRO)	—	—	—	69	440	69	440	(48)	2018
INFOMART BUILDING DALLAS (METRO)	—	24	338	4	34	28	372	(74)	2018
DC1 WASHINGTON, D.C. (METRO)	—	—	—	—	6	—	6	(4)	1999
DC2 WASHINGTON, D.C. (METRO)	—	—	—	5	191	5	191	(101)	1999
DC3 WASHINGTON, D.C. (METRO)	—	—	37	—	57	—	94	(62)	2004
DC4 WASHINGTON, D.C. (METRO)	—	2	7	—	42	2	49	(30)	2005
DC5 WASHINGTON, D.C. (METRO)	—	1	5	—	47	1	52	(29)	2005
DC6 WASHINGTON, D.C. (METRO)	—	1	5	—	95	1	100	(67)	2005
DC7 WASHINGTON, D.C. (METRO)	—	—	—	—	18	—	18	(17)	2010

F-61


	Initial Costs to Company (1)			Costs Capitalized Subsequent to Acquisition or Lease (2)		Total Costs
	Encumbrances	Land	Buildings and Improvements (3)	Land	Buildings and Improvements (3)	Land	Buildings and Improvements (3)	Accumulated Depreciation (4)	Date of Acquisition or Lease (5)
DC10 WASHINGTON, D.C. (METRO)	—	—	45	—	65	—	110	(101)	2011
DC11 WASHINGTON, D.C. (METRO)	—	1	5	—	189	1	194	(98)	2005
DC12 WASHINGTON, D.C. (METRO)	—	—	102	—	84	—	186	(66)	2017
DC13 WASHINGTON, D.C. (METRO)	—	6	25	—	29	6	54	(23)	2017
DC14 WASHINGTON, D.C. (METRO)	—	3	34	—	19	3	53	(21)	2017
DC15 WASHINGTON, D.C. (METRO)	—	2	—	2	210	4	210	(45)	2018
DC16 WASHINGTON, D.C. (METRO)	—	—	—	—	341	—	341	(11)	2022
DC21 WASHINGTON, D.C. (METRO)	—	2	—	—	324	2	324	(37)	2019
DC97 WASHINGTON, D.C. (METRO)	—	—	2	—	3	—	5	(2)	2017
DE1 DENVER (METRO)	—	—	—	—	11	—	11	(9)	2010
DE2 DENVER (METRO)	—	5	23	—	37	5	60	(27)	2017
HO1 HOUSTON (METRO)	—	1	24	—	38	1	62	(25)	2017
KA1 KAMLOOPS (METRO), CANADA	—	3	47	—	27	3	74	(15)	2020
LA1 LOS ANGELES (METRO)	—	—	—	—	112	—	112	(88)	1999
LA2 LOS ANGELES (METRO)	—	—	—	—	11	—	11	(10)	2000
LA3 LOS ANGELES (METRO)	—	—	35	4	22	4	57	(52)	2005
LA4 LOS ANGELES (METRO)	—	19	138	—	63	19	201	(105)	2009
LA7 LOS ANGELES (METRO)	—	8	34	—	58	8	92	(29)	2017
LM1 LIMA (METRO), PERU	—	5	9	—	5	5	14	(2)	2022
MI1 MIAMI (METRO)	—	19	127	—	218	19	345	(120)	2017
MI2 MIAMI (METRO)	—	—	—	—	22	—	22	(18)	2010
MI3 MIAMI (METRO)	—	—	—	—	35	—	35	(27)	2012
MI6 MIAMI (METRO)	—	5	23	—	14	5	37	(17)	2017
MO1 MONTERREY (METRO), MEXICO	—	—	3	—	12	—	15	(4)	2020
MT1 MONTREAL (METRO), CANADA	—	—	77	34	72	34	149	(31)	2020
MT2 MONTREAL (METRO), CANADA	—	3	58	—	37	3	95	(13)	2022
MX1 MEXICO CITY (METRO), MEXICO	—	1	54	—	53	1	107	(22)	2020
MX2 MEXICO CITY (METRO), MEXICO	—	1	16	—	118	1	134	(14)	2020
NY1 NEW YORK (METRO)	—	—	—	—	75	—	75	(56)	1999
NY2 NEW YORK (METRO)	—	—	—	18	209	18	209	(144)	2000
NY3 NEW YORK (METRO)	—	—	—	38	391	38	391	(15)	2022
NY4 NEW YORK (METRO)	—	—	—	—	387	—	387	(243)	2006
NY5 NEW YORK (METRO)	—	—	—	—	324	—	324	(139)	2010
NY6 NEW YORK (METRO)	—	—	—	—	104	—	104	(34)	2010
NY7 NEW YORK (METRO)	—	—	25	—	149	—	174	(141)	2010
NY9 NEW YORK (METRO)	—	—	—	—	59	—	59	(32)	2010
NY11 NEW YORK (METRO)	—	2	59	—	141	2	200	(44)	2017
NY13 NEW YORK (METRO)	—	—	32	8	7	8	39	(25)	2017

F-62


	Initial Costs to Company (1)			Costs Capitalized Subsequent to Acquisition or Lease (2)		Total Costs
	Encumbrances	Land	Buildings and Improvements (3)	Land	Buildings and Improvements (3)	Land	Buildings and Improvements (3)	Accumulated Depreciation (4)	Date of Acquisition or Lease (5)
OT1 OTTAWA (METRO), CANADA	—	1	39	—	3	1	42	(11)	2020
PH1 PHILADELPHIA (METRO)	—	—	—	—	45	—	45	(28)	2010
RJ1 RIO DE JANEIRO (METRO), BRAZIL	—	—	—	—	20	—	20	(16)	2011
RJ2 RIO DE JANEIRO (METRO), BRAZIL	—	—	2	1	85	1	87	(31)	2012
RJ3 RIO DE JANEIRO (METRO), BRAZIL	—	5	49	—	—	5	49	—	2018
SE2 SEATTLE (METRO)	—	—	—	—	31	—	31	(28)	2010
SE3 SEATTLE (METRO)	—	—	2	—	102	—	104	(83)	2011
SE4 SEATTLE (METRO)	—	4	13	—	85	4	98	(23)	2017
SJ1 SAINT JOHN (METRO), CANADA	—	—	14	—	2	—	16	(4)	2020
SP1 SÃO PAULO (METRO), BRAZIL	—	—	10	—	24	—	34	(23)	2011
SP2 SÃO PAULO (METRO), BRAZIL	—	—	—	3	48	3	48	(34)	2011
SP3 SÃO PAULO (METRO), BRAZIL	—	7	73	—	172	7	245	(72)	2017
SP4 SÃO PAULO (METRO), BRAZIL	—	—	22	6	92	6	114	(35)	2017
ST1 SANTIAGO (METRO), CHILE	—	2	25	—	13	2	38	(6)	2022
ST2 SANTIAGO (METRO), CHILE	—	2	12	—	38	2	50	(3)	2022
ST3 SANTIAGO (METRO), CHILE	—	1	10	—	9	1	19	(4)	2022
ST4 SANTIAGO (METRO), CHILE	—	—	5	—	7	—	12	(2)	2022
SV1 SILICON VALLEY (METRO)	—	—	—	16	153	16	153	(113)	1999
SV2 SILICON VALLEY (METRO)	—	—	—	—	161	—	161	(120)	2003
SV3 SILICON VALLEY (METRO)	—	—	—	—	82	—	82	(51)	1999
SV4 SILICON VALLEY (METRO)	—	—	—	—	113	—	113	(43)	2005
SV5 SILICON VALLEY (METRO)	—	6	99	—	109	6	208	(118)	2010
SV8 SILICON VALLEY (METRO)	—	—	—	—	158	—	158	(61)	2010
SV10 SILICON VALLEY (METRO)	—	13	124	—	97	13	221	(75)	2017
SV11 SILICON VALLEY (METRO)	—	—	—	—	235	—	235	(28)	2019
SV14 SILICON VALLEY (METRO)	—	4	6	—	4	4	10	(5)	2017
SV15 SILICON VALLEY (METRO)	—	8	23	—	7	8	30	(15)	2017
SV16 SILICON VALLEY (METRO)	—	4	15	—	4	4	19	(10)	2017
SV17 SILICON VALLEY (METRO)	—	—	17	—	3	—	20	(19)	2017
TR1 TORONTO (METRO), CANADA	—	—	—	—	81	—	81	(39)	2010
TR2 TORONTO (METRO), CANADA	—	—	21	94	145	94	166	(50)	2015
TR4 TORONTO (METRO), CANADA	—	—	14	—	4	—	18	(14)	2020
TR5 MARKHAM (METRO), CANADA	—	—	25	—	2	—	27	(14)	2020
TR6 BRAMPTON (METRO), CANADA	—	9	59	2	97	11	156	(15)	2020
TR7 BRAMPTON (METRO), CANADA	—	9	72	—	28	9	100	(29)	2020
VA1 BURNABY (METRO), CANADA	—	—	5	—	6	—	11	(5)	2020
WI1 WINNIPEG (METRO), CANADA	—	—	57	—	6	—	63	(8)	2020
OTHERS (6)	—	87	55	154	337	241	392	(70)	Various

F-63


	Initial Costs to Company (1)			Costs Capitalized Subsequent to Acquisition or Lease (2)		Total Costs
	Encumbrances	Land	Buildings and Improvements (3)	Land	Buildings and Improvements (3)	Land	Buildings and Improvements (3)	Accumulated Depreciation (4)	Date of Acquisition or Lease (5)

EMEA:
AB1 ABIDJAN (METRO), CÔTE D'IVOIRE	—	—	1	—	5	—	6	(1)	2022
AC1 ACCRA (METRO), GHANA	—	—	1	—	7	—	8	(2)	2022
AD1 ABU DHABI (METRO), UNITED ARAB EMIRATES	—	—	—	—	76	—	76	(34)	2017
AM1 AMSTERDAM (METRO), THE NETHERLANDS	—	—	—	—	85	—	85	(53)	2008
AM2 AMSTERDAM (METRO), THE NETHERLANDS	—	—	—	—	78	—	78	(39)	2008
AM3 AMSTERDAM (METRO), THE NETHERLANDS	—	—	27	—	121	—	148	(79)	2011
AM4 AMSTERDAM (METRO), THE NETHERLANDS	—	—	—	—	206	—	206	(64)	2016
AM5 AMSTERDAM (METRO), THE NETHERLANDS	—	—	92	—	8	—	100	(46)	2016
AM6 AMSTERDAM (METRO), THE NETHERLANDS	—	7	51	—	91	7	142	(50)	2016
AM7 AMSTERDAM (METRO), THE NETHERLANDS	—	—	7	3	153	3	160	(49)	2016
AM8 AMSTERDAM (METRO), THE NETHERLANDS	—	—	—	—	12	—	12	(8)	2016
AM11 AMSTERDAM (METRO), THE NETHERLANDS	—	—	6	—	13	—	19	(7)	2019
BA1 BARCELONA (METRO), SPAIN	—	—	9	—	28	—	37	(25)	2017
BA2 BARCELONA (METRO), SPAIN	—	8	52	—	—	8	52	—	2021
BX1 BORDEAUX (METRO), FRANCE	—	2	4	—	95	2	99	(6)	2020
DB1 DUBLIN (METRO), IRELAND	—	—	—	3	25	3	25	(6)	2016
DB2 DUBLIN (METRO), IRELAND	—	—	12	1	21	1	33	(16)	2016
DB3 DUBLIN (METRO), IRELAND	—	3	54	—	25	3	79	(35)	2016
DB4 DUBLIN (METRO), IRELAND	—	—	27	7	20	7	47	(16)	2016
DU1 DÜSSELDORF (METRO), GERMANY	—	—	—	7	34	7	34	(19)	2000
DX1 DUBAI (METRO), UNITED ARAB EMIRATES	—	—	—	—	96	—	96	(66)	2008
DX2 DUBAI (METRO), UNITED ARAB EMIRATES	—	—	—	—	1	—	1	(1)	2017
DX3 DUBAI (METRO), UNITED ARAB EMIRATES	—	7	—	—	74	7	74	(5)	2020
EN1 ENSCHEDE (METRO), THE NETHERLANDS	—	—	—	—	39	—	39	(25)	2008
FR2 FRANKFURT (METRO), GERMANY	—	—	—	17	582	17	582	(207)	2007
FR4 FRANKFURT (METRO), GERMANY	—	11	9	—	102	11	111	(51)	2009
FR5 FRANKFURT (METRO), GERMANY	30	—	—	13	252	13	252	(82)	2012
FR6 FRANKFURT (METRO), GERMANY	—	—	—	—	133	—	133	(54)	2016
FR7 FRANKFURT (METRO), GERMANY	—	—	44	—	47	—	91	(47)	2016
FR8 FRANKFURT (METRO), GERMANY	—	19	58	—	172	19	230	(17)	2020

F-64


	Initial Costs to Company (1)			Costs Capitalized Subsequent to Acquisition or Lease (2)		Total Costs
	Encumbrances	Land	Buildings and Improvements (3)	Land	Buildings and Improvements (3)	Land	Buildings and Improvements (3)	Accumulated Depreciation (4)	Date of Acquisition or Lease (5)
FR13 FRANKFURT (METRO), GERMANY	—	—	—	—	105	—	105	(5)	2021
GN1 GENOA (METRO), ITALY	—	—	2	—	20	—	22	(2)	2020
GV1 GENEVA (METRO), SWITZERLAND	—	—	—	—	27	—	27	(16)	2004
GV2 GENEVA (METRO), SWITZERLAND	—	—	—	—	83	—	83	(33)	2009
HE3 HELSINKI (METRO), FINLAND	—	—	—	—	16	—	16	(11)	2016
HE4 HELSINKI (METRO), FINLAND	—	—	29	—	6	—	35	(28)	2016
HE5 HELSINKI (METRO), FINLAND	—	—	8	5	19	5	27	(11)	2016
HE6 HELSINKI (METRO), FINLAND	—	—	17	1	38	1	55	(23)	2016
HE7 HELSINKI (METRO), FINLAND	—	7	7	1	66	8	73	(16)	2018
HH1 HAMBURG (METRO), GERMANY	—	4	5	—	72	4	77	(13)	2018
IL2 ISTANBUL (METRO), TURKEY	—	14	39	—	73	14	112	(24)	2017
IL4 ISTANBUL (METRO), TURKEY	—	—	60	—	2	—	62	(1)	2017
JN1 JOHANNESBURG (METRO), SOUTH AFRICA	—	—	—	—	5	—	5	—	2024
LD3 LONDON (METRO), UNITED KINGDOM	—	—	—	—	22	—	22	(17)	2000
LD4 LONDON (METRO), UNITED KINGDOM	—	—	23	—	166	—	189	(83)	2007
LD5 LONDON (METRO), UNITED KINGDOM	—	—	16	—	205	—	221	(121)	2010
LD6 LONDON (METRO), UNITED KINGDOM	—	—	—	—	159	—	159	(67)	2013
LD7 LONDON (METRO), UNITED KINGDOM	—	—	—	2	291	2	291	(56)	2018
LD8 LONDON (METRO), UNITED KINGDOM	—	—	108	57	226	57	334	(75)	2016
LD9 LONDON (METRO), UNITED KINGDOM	—	—	181	—	242	—	423	(142)	2016
LD10 LONDON (METRO), UNITED KINGDOM	—	—	40	—	238	—	278	(50)	2017
LG1 & LG2 LAGOS (METRO), NIGERIA	—	1	12	—	38	1	50	(8)	2022
LS1 LISBON (METRO), PORTUGAL	—	—	7	3	34	3	41	(9)	2017
MA1 MANCHESTER (METRO), UNITED KINGDOM	—	—	—	—	21	—	21	(12)	2016
MA3 MANCHESTER (METRO), UNITED KINGDOM	—	—	45	—	22	—	67	(38)	2016
MA4 MANCHESTER (METRO), UNITED KINGDOM	—	—	7	—	11	—	18	(11)	2016
MA5 MANCHESTER (METRO), UNITED KINGDOM	—	4	7	—	131	4	138	(13)	2020
MD1 MADRID (METRO), SPAIN	—	—	8	—	9	—	17	(9)	2017
MD2 MADRID (METRO), SPAIN	—	—	41	19	103	19	144	(56)	2017
MD6 MADRID (METRO), SPAIN	—	—	—	—	42	—	42	(4)	2022
ML2 MILAN (METRO), ITALY	—	—	—	—	27	—	27	(21)	2016
ML3 MILAN (METRO), ITALY	—	—	—	3	45	3	45	(19)	2016
ML5 MILAN (METRO), ITALY	—	6	21	—	105	6	126	(16)	2019
MU1 MUNICH (METRO), GERMANY	—	—	—	—	35	—	35	(23)	2007
MU3 MUNICH (METRO), GERMANY	—	—	—	—	6	—	6	(4)	2010

F-65


	Initial Costs to Company (1)			Costs Capitalized Subsequent to Acquisition or Lease (2)		Total Costs
	Encumbrances	Land	Buildings and Improvements (3)	Land	Buildings and Improvements (3)	Land	Buildings and Improvements (3)	Accumulated Depreciation (4)	Date of Acquisition or Lease (5)
MU4 MUNICH (METRO), GERMANY	—	11	35	—	83	11	118	(12)	2020
PA2 & PA3 PARIS (METRO), FRANCE	—	—	30	21	314	21	344	(158)	2007
PA4 PARIS (METRO), FRANCE	—	1	10	—	225	1	235	(110)	2011
PA5 PARIS (METRO), FRANCE	—	—	17	—	9	—	26	(12)	2016
PA6 PARIS (METRO), FRANCE	—	—	—	—	89	—	89	(48)	2016
PA7 PARIS (METRO), FRANCE	—	—	—	—	30	—	30	(22)	2016
PA10 PARIS (METRO), FRANCE	—	—	—	—	166	—	166	(12)	2021
SK1 STOCKHOLM, (METRO), SWEDEN	—	—	15	—	53	—	68	(19)	2016
SK2 STOCKHOLM, (METRO), SWEDEN	—	—	80	3	61	3	141	(50)	2016
SK3 STOCKHOLM, (METRO), SWEDEN	—	—	—	—	48	—	48	(12)	2016
SO1 SOFIA (METRO), BULGARIA	—	—	5	—	4	—	9	(5)	2016
SO2 SOFIA (METRO), BULGARIA	—	3	—	—	27	3	27	(5)	2017
WA1 WARSAW (METRO), POLAND	—	—	6	—	26	—	32	(18)	2016
WA2 WARSAW (METRO), POLAND	—	—	5	—	10	—	15	(8)	2016
WA3 WARSAW (METRO), POLAND	—	2	—	1	67	3	67	(11)	2017
ZH2 ZURICH (METRO), SWITZERLAND	—	—	—	—	6	—	6	(5)	2002
ZH4 ZURICH (METRO), SWITZERLAND	—	—	11	—	56	—	67	(40)	2009
ZH5 ZURICH (METRO), SWITZERLAND	—	—	—	8	253	8	253	(63)	2009
ZW1 ZWOLLE (METRO), THE NETHERLANDS	—	—	—	—	11	—	11	(10)	2008
OTHERS (6)	—	56	18	272	381	328	399	(46)	Various

Asia-Pacific:
AE1 ADELAIDE (METRO), AUSTRALIA	—	2	1	—	3	2	4	(2)	2018
BR1 BRISBANE (METRO), AUSTRALIA	—	3	1	—	4	3	5	(2)	2018
CA1 CANBERRA (METRO), AUSTRALIA	—	—	18	—	5	—	23	(6)	2018
HK1 HONG KONG (METRO), CHINA	—	—	—	—	327	—	327	(148)	2003
HK2 HONG KONG (METRO), CHINA	—	—	—	—	244	—	244	(202)	2010
HK3 HONG KONG (METRO), CHINA	—	—	—	—	191	—	191	(122)	2012
HK4 HONG KONG (METRO), CHINA	—	—	—	—	10	—	10	—	2012
HK5 HONG KONG (METRO), CHINA	—	—	70	—	48	—	118	(47)	2017
JH1 JOHOR (METRO), MALAYSIA	—	3	37	—	5	3	42	(1)	2024
KL1 KUALA LUMPUR (METRO), MALAYSIA	—	—	31	—	15	—	46	(2)	2023
MB1 MUMBAI (METRO), INDIA	—	—	26	—	8	—	34	(9)	2021
MB2 MUMBAI (METRO), INDIA	—	—	57	18	(11)	18	46	(12)	2021
MB4 MUMBAI (METRO), INDIA	—	—	18	—	1	—	19	(2)	2024
ME1 MELBOURNE (METRO), AUSTRALIA	—	13	—	—	89	13	89	(38)	2013
ME2 MELBOURNE (METRO), AUSTRALIA	—	—	—	—	128	—	128	(21)	2018
ME4 MELBOURNE (METRO), AUSTRALIA	—	3	84	—	4	3	88	(36)	2018

F-66


	Initial Costs to Company (1)			Costs Capitalized Subsequent to Acquisition or Lease (2)		Total Costs
	Encumbrances	Land	Buildings and Improvements (3)	Land	Buildings and Improvements (3)	Land	Buildings and Improvements (3)	Accumulated Depreciation (4)	Date of Acquisition or Lease (5)
ME5 MELBOURNE (METRO), AUSTRALIA	—	6	4	—	8	6	12	(4)	2018
OS1 OSAKA (METRO), JAPAN	—	—	15	—	78	—	93	(51)	2013
OS3 OSAKA (METRO), JAPAN	—	—	—	—	190	—	190	(42)	2020
PE1 PERTH (METRO), AUSTRALIA	—	1	1	—	3	1	4	(1)	2018
PE2 PERTH (METRO), AUSTRALIA	—	—	16	—	15	—	31	(13)	2018
PE3 PERTH (METRO), AUSTRALIA	—	—	—	—	55	—	55	(11)	2020
SG1 SINGAPORE (METRO)	—	—	—	—	297	—	297	(156)	2003
SG2 SINGAPORE (METRO)	—	—	—	—	342	—	342	(265)	2008
SG3 SINGAPORE (METRO)	—	—	35	—	250	—	285	(116)	2013
SG4 SINGAPORE (METRO)	—	—	55	—	154	—	209	(56)	2019
SG5 SINGAPORE (METRO)	—	—	—	—	348	—	348	(61)	2019
SH2 SHANGHAI (METRO), CHINA	—	—	—	—	8	—	8	(6)	2012
SH3 SHANGHAI (METRO), CHINA	—	—	7	—	14	—	21	(10)	2012
SH5 SHANGHAI (METRO), CHINA	—	—	11	—	25	—	36	(22)	2012
SH6 SHANGHAI (METRO), CHINA	—	—	17	—	34	—	51	(15)	2017
SL1 SEOUL (METRO), SOUTH KOREA	—	—	29	—	27	—	56	(28)	2019
SL4 SEOUL (METRO), SOUTH KOREA	—	—	22	—	5	—	27	(3)	2024
SY1 SYDNEY (METRO), AUSTRALIA	—	—	—	73	38	73	38	(24)	2003
SY2 SYDNEY (METRO), AUSTRALIA	—	—	3	—	24	—	27	(22)	2008
SY3 SYDNEY (METRO), AUSTRALIA	—	—	9	—	128	—	137	(95)	2010
SY4 SYDNEY (METRO), AUSTRALIA	—	—	—	—	162	—	162	(80)	2014
SY5 SYDNEY (METRO), AUSTRALIA	—	72	—	—	343	72	343	(45)	2018
SY6 SYDNEY (METRO), AUSTRALIA	—	8	64	—	36	8	100	(22)	2018
SY7 SYDNEY (METRO), AUSTRALIA	—	2	47	—	2	2	49	(14)	2018
TY1 TOKYO (METRO), JAPAN	—	—	—	—	28	—	28	(20)	2000
TY2 TOKYO (METRO), JAPAN	—	—	—	—	100	—	100	(54)	2006
TY3 TOKYO (METRO), JAPAN	—	—	—	—	56	—	56	(38)	2010
TY4 TOKYO (METRO), JAPAN	—	—	—	—	63	—	63	(38)	2012
TY5 TOKYO (METRO), JAPAN	—	—	—	—	45	—	45	(15)	2014
TY6 TOKYO (METRO), JAPAN	—	—	38	—	13	—	51	(42)	2015
TY7 TOKYO (METRO), JAPAN	—	—	13	—	11	—	24	(16)	2015
TY8 TOKYO (METRO), JAPAN	—	—	54	—	10	—	64	(34)	2015
TY9 TOKYO (METRO), JAPAN	—	—	93	—	—	—	93	(74)	2015
TY10 TOKYO (METRO), JAPAN	—	—	66	—	1	—	67	(32)	2015
TY11 TOKYO (METRO), JAPAN	—	—	22	—	207	—	229	(45)	2018
TY15 TOKYO (METRO), JAPAN	—	—	109	—	111	—	220	(4)	2024
OTHERS (6)	—	—	2	76	225	76	227	(27)	Various
TOTAL LOCATIONS	$30	$590	$5,053	$1,072	$21,194	$1,662	$26,247	$(9,639)

F-67

(1) The initial cost was $0 if the lease of the respective IBX was classified as an operating lease.

(2) Costs capitalized subsequent to acquisition or lease are net of impairments and include the impact of allocations between land and buildings and improvements following the purchase of previously leased assets.

(3) Building and improvements include all fixed assets except for land.

(4) Buildings and improvements are depreciated on a straight-line basis over estimated useful live as described in Note 1 within the Consolidated Financial Statements.

(5) Date of lease or acquisition represents the date we leased the facility or acquired the facility through purchase or acquisition.

(6) Includes various IBXs that are under initial development and costs incurred at certain central locations supporting various IBX functions.

The aggregate gross cost of our properties for federal income tax purpose approximated $34.0 billion (unaudited) as of December 31, 2024.

The following table reconciles the historical cost of our properties for financial reporting purposes for each of the years ended December 31, 2024, 2023 and 2022 (in millions):


	2024		2023		2022
Gross Fixed Assets:
Balance, beginning of period	$	26,614	$	23,803	$	21,906
Additions (including acquisitions and improvements)	3,266		3,117		3,251
Disposals	(626)		(589)		(544)
Impairment charges (1)	(302)		—		—
Foreign currency transaction adjustments and others	(1,043)		283		(810)
Balance, end of year	$	27,909	$	26,614	$	23,803

Accumulated Depreciation:
Balance, beginning of period	$	(9,089)	$	(8,095)	$	(7,275)
Additions (depreciation expense)	(1,413)		(1,317)		(1,268)
Disposals	317		413		230
Impairment charges (1)	186		—		—
Foreign currency transaction adjustments and others	360		(90)		218
Balance, end of year	$	(9,639)	$	(9,089)	$	(8,095)

(1) Refer to Note 17 within the Consolidated Financial Statements.

F-68

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