Item 6. Selected Financial Data.

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Item 6. Selected Financial Data.

The following selected consolidated statements of operations, balance sheets and other data have been derived from our audited consolidated financial statements. The selected consolidated financial and operating information set forth below should be read in conjunction with "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" and our Consolidated Financial Statements and the Notes thereto included elsewhere in this Annual Report.



	Year Ended December 31,
	2019(1)			2018(2)(3)(4)(5)(6)			2017(4)(5)(6)			2016(5)(6)(7)			2015(5)(6)
	(In thousands)
Consolidated Statements of Operations Data:
Revenues:
Storage rental	$	2,681,087		$	2,622,455		$	2,377,557		$	2,142,905		$	1,837,897
Service	1,581,497			1,603,306			1,468,021			1,368,548			1,170,079
Total Revenues	4,262,584			4,225,761			3,845,578			3,511,453			3,007,976
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	1,833,315			1,793,954			1,664,825			1,555,814			1,290,025
Selling, general and administrative	991,664			1,006,983			937,180			868,351			797,946
Depreciation and amortization	658,201			639,514			522,376			452,326			345,464
Significant Acquisition Costs	13,293			50,665			84,901			131,944			47,014
Restructuring Charges	48,597			—			—			—			—
Intangible impairments	—			—			3,011			—			—
(Gain) Loss on disposal/write-down of property, plant and equipment, net	(63,824		)	(73,622		)	(766		)	(898		)	1,941
Total Operating Expenses	3,481,246			3,417,494			3,211,527			3,007,537			2,482,390
Operating Income	781,338			808,267			634,051			503,916			525,586
Interest Expense, Net	419,298			409,648			353,645			310,662			263,871
Other Expense (Income), Net	33,898			(11,692		)	79,429			44,300			98,590
Income from Continuing Operations Before Provision (Benefit) for Income Taxes	328,142			410,311			200,977			148,954			163,125
Provision (Benefit) for Income Taxes	59,931			42,753			22,962			45,074			37,922
Income from Continuing Operations	268,211			367,558			178,015			103,880			125,203
Income (Loss) from Discontinued Operations, Net of Tax	104			(12,427		)	(6,291		)	3,353			—
Net Income	268,315			355,131			171,724			107,233			125,203
Less: Net Income Attributable to Noncontrolling Interests	938			1,198			1,611			2,409			1,962
Net Income Attributable to Iron Mountain Incorporated	$	267,377		$	353,933		$	170,113		$	104,824		$	123,241
(footnotes follow)



	Year Ended December 31,
	2019(1)		2018(2)(3)(4)			2017(4)			2016(7)		2015
			(In thousands, except per share data)
Earnings (Losses) per Share—Basic:
Income from Continuing Operations	$	0.93	$	1.28		$	0.66		$	0.41	$	0.59
Total (Loss) Income from Discontinued Operations	$	—	$	(0.04	)	$	(0.02	)	$	0.01	$	—
Net Income Attributable to Iron Mountain Incorporated	$	0.93	$	1.24		$	0.64		$	0.43	$	0.58
Earnings (Losses) per Share—Diluted:
Income from Continuing Operations	$	0.93	$	1.28		$	0.66		$	0.41	$	0.59
Total (Loss) Income from Discontinued Operations	$	—	$	(0.04	)	$	(0.02	)	$	0.01	$	—
Net Income Attributable to Iron Mountain Incorporated	$	0.93	$	1.23		$	0.64		$	0.42	$	0.58
Weighted Average Common Shares Outstanding—Basic	286,971		285,913			265,898			246,178		210,764
Weighted Average Common Shares Outstanding—Diluted	287,687		286,653			266,845			247,267		212,118
(footnotes follow)



	Year Ended December 31,
	2019(1)			2018(2)(3)(4)			2017(4)			2016(7)			2015
	(In thousands)
Other Data:
Adjusted EBITDA(8)	$	1,437,605		$	1,424,824		$	1,243,573		$	1,087,288		$	920,005
Adjusted EBITDA Margin(8)	33.7		%	33.7		%	32.3		%	31.0		%	30.6		%
(footnotes follow)



	As of December 31,
	2019(1)		2018(2)(3)(4)		2017(4)		2016(7)		2015
	(In thousands)
Consolidated Balance Sheets Data:
Cash and Cash Equivalents(9)	$	193,555	$	165,485	$	925,699	$	236,484	$	128,381
Total Assets	13,816,816		11,857,218		10,975,387		9,486,800		6,350,587
Total Long-term Debt (including current portion of Long-term Debt)	8,664,579		8,142,823		7,043,271		6,251,181		4,845,678
Redeemable Noncontrolling Interests	67,682		70,532		91,418		54,697		—
Total Equity	1,464,227		1,862,463		2,285,134		1,936,671		528,607
(footnotes follow)


(1)	On January 1, 2019, we adopted Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842), as amended ("ASU 2016-02"). The selected financial data above for 2019 reflects the adoption of ASU 2016-02. At January 1, 2019, we recognized the cumulative effect of initially applying ASU 2016-02 as an adjustment to the opening balance of (Distributions in excess of earnings) Earnings in excess of distributions, resulting in an increase of approximately $5.8 million to stockholders' equity.

(1)

On January 1, 2019, we adopted Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842), as amended ("ASU 2016-02"). The selected financial data above for 2019 reflects the adoption of ASU 2016-02. At January 1, 2019, we recognized the cumulative effect of initially applying ASU 2016-02 as an adjustment to the opening balance of (Distributions in excess of earnings) Earnings in excess of distributions, resulting in an increase of approximately $5.8 million to stockholders' equity.


(2)	On January 1, 2018, we adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"). The selected financial data above for 2018 reflects the adoption of ASU 2014-09. At January 1, 2018, we recognized the cumulative effect of initially applying ASU 2014-09 as an adjustment to the opening balance of (Distributions in excess of earnings) Earnings in excess of distributions, resulting in a decrease of approximately $30.2 million to stockholders' equity.

(2)

On January 1, 2018, we adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"). The selected financial data above for 2018 reflects the adoption of ASU 2014-09. At January 1, 2018, we recognized the cumulative effect of initially applying ASU 2014-09 as an adjustment to the opening balance of (Distributions in excess of earnings) Earnings in excess of distributions, resulting in a decrease of approximately $30.2 million to stockholders' equity.


(3)	The selected financial data above for 2018 includes the results of IODC from January 10, 2018.


(4)	In June 2019, we received a notification of assessment from tax and customs authorities in the Netherlands related to a value-added tax (“VAT”) liability of approximately 16.8 million Euros primarily related to the years ending December 31, 2018 and 2017, as described more fully in Note 2.y. to Notes to Consolidated Financial Statements included in this Annual Report. Based on our estimate of the amount of loss related to this matter that is both probable and estimable, we have restated the following: (i) selling, general and administrative expenses and interest expense were increased by approximately $11.0 million and $0.4 million, respectively, and the provision for income taxes was decreased by approximately $2.0 million for the year ended December 31, 2018 and (ii) selling, general and administrative expenses and interest expense were increased by approximately $16.6 million and $0.1 million, respectively, and the provision for income taxes was decreased by approximately $3.0 million for the year ended December 31, 2017.

(4)

In June 2019, we received a notification of assessment from tax and customs authorities in the Netherlands related to a value-added tax (“VAT”) liability of approximately 16.8 million Euros primarily related to the years ending December 31, 2018 and 2017, as described more fully in Note 2.y. to Notes to Consolidated Financial Statements included in this Annual Report. Based on our estimate of the amount of loss related to this matter that is both probable and estimable, we have restated the following: (i) selling, general and administrative expenses and interest expense were increased by approximately $11.0 million and $0.4 million, respectively, and the provision for income taxes was decreased by approximately $2.0 million for the year ended December 31, 2018 and (ii) selling, general and administrative expenses and interest expense were increased by approximately $16.6 million and $0.1 million, respectively, and the provision for income taxes was decreased by approximately $3.0 million for the year ended December 31, 2017.


(5)	Beginning in the fourth quarter of 2019, we present Significant Acquisition Costs (as defined in Note 2.x. to Notes to Consolidated Financial Statements included in this Annual Report) as a separate line on our Consolidated Statements of Operations. Previously, these costs were included within Cost of sales (excluding depreciation and amortization) and Selling, general and administrative expense. All prior periods are now presented to conform to this presentation. This change in presentation resulted in a decrease in Cost of sales (excluding depreciation and amortization) of approximately $7.6 million, $20.5 million, $12.0 million and $0.0 million for the years ended December 31, 2018, 2017, 2016 and 2015, respectively, and a decrease to Selling, general and administrative expense of approximately $43.0 million, $64.4 million, $120.0 million and $47.0 million for the years ended December 31, 2018, 2017, 2016 and 2015, respectively. See Note 2.x. to Notes to Consolidated Financial Statements included in this Annual Report for additional information on this change in presentation.

(5)

Beginning in the fourth quarter of 2019, we present Significant Acquisition Costs (as defined in Note 2.x. to Notes to Consolidated Financial Statements included in this Annual Report) as a separate line on our Consolidated Statements of Operations. Previously, these costs were included within Cost of sales (excluding depreciation and amortization) and Selling, general and administrative expense. All prior periods are now presented to conform to this presentation. This change in presentation resulted in a decrease in Cost of sales (excluding depreciation and amortization) of approximately $7.6 million, $20.5 million, $12.0 million and $0.0 million for the years ended December 31, 2018, 2017, 2016 and 2015, respectively, and a decrease to Selling, general and administrative expense of approximately $43.0 million, $64.4 million, $120.0 million and $47.0 million for the years ended December 31, 2018, 2017, 2016 and 2015, respectively. See Note 2.x. to Notes to Consolidated Financial Statements included in this Annual Report for additional information on this change in presentation.


(6)	Beginning in 2019, we present gains on sale of real estate as a component of operating income in the line item (Gain) loss on disposal/write-down of property, plant and equipment, net in our Consolidated Statements of Operations. Such amounts are presented gross of tax with any tax impact presented within Provision (benefit) for income taxes. All prior periods are now presented to conform to this presentation. Previously, we classified gains on sale of real estate, net of tax, as a separate line on our Consolidated Statements of Operations and excluded such amounts from our reported operating income. We presented such amounts net of tax as these gains were presented below the Provision (benefit) for income taxes in our Consolidated Statements of Operations. This change in presentation resulted in an increase in (Gain) loss on disposal/write-down of property, plant and equipment, net of approximately $63.8 million, $1.6 million, $2.3 million and $1.1 million for the years ended December 31, 2018, 2017, 2016 and 2015, respectively, and an increase in Provision (benefit) for income taxes of approximately $8.5 million, $0.0 million, $0.1 million and $0.2 million for the years ended December 31, 2018, 2017, 2016 and 2015, respectively. See Note 2.x. to Notes to Consolidated Financial Statements included in this Annual Report for additional information on this change in presentation.

(6)

Beginning in 2019, we present gains on sale of real estate as a component of operating income in the line item (Gain) loss on disposal/write-down of property, plant and equipment, net in our Consolidated Statements of Operations. Such amounts are presented gross of tax with any tax impact presented within Provision (benefit) for income taxes. All prior periods are now presented to conform to this presentation. Previously, we classified gains on sale of real estate, net of tax, as a separate line on our Consolidated Statements of Operations and excluded such amounts from our reported operating income. We presented such amounts net of tax as these gains were presented below the Provision (benefit) for income taxes in our Consolidated Statements of Operations. This change in presentation resulted in an increase in (Gain) loss on disposal/write-down of property, plant and equipment, net of approximately $63.8 million, $1.6 million, $2.3 million and $1.1 million for the years ended December 31, 2018, 2017, 2016 and 2015, respectively, and an increase in Provision (benefit) for income taxes of approximately $8.5 million, $0.0 million, $0.1 million and $0.2 million for the years ended December 31, 2018, 2017, 2016 and 2015, respectively. See Note 2.x. to Notes to Consolidated Financial Statements included in this Annual Report for additional information on this change in presentation.


(7)	The selected financial data above for 2016 includes the results of Recall from May 2, 2016.


(8)	For definitions of Adjusted EBITDA and Adjusted EBITDA Margin, a reconciliation of Adjusted EBITDA to Income (loss) from continuing operations and a discussion of why we believe these non-GAAP measures provide relevant and useful information to our current and potential investors, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Measures" included in this Annual Report.

(8)

For definitions of Adjusted EBITDA and Adjusted EBITDA Margin, a reconciliation of Adjusted EBITDA to Income (loss) from continuing operations and a discussion of why we believe these non-GAAP measures provide relevant and useful information to our current and potential investors, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Measures" included in this Annual Report.


(9)	Includes restricted cash of $4.9 million, $15.1 million and $22.2 million as of December 31, 2019, 2018 and 2017, respectively.

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