Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.

*(a)*Financial Statements filed as part of this report:

			PAGE
IRON MOUNTAIN INCORPORATED
Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34)			67
Consolidated Balance Sheets, December 31, 2021 and 2020			69
Consolidated Statements of Operations, Years Ended December 31, 2021, 2020 and 2019			70
Consolidated Statements of Comprehensive Income (Loss), Years Ended December 31, 2021, 2020 and 2019			71
Consolidated Statements of Equity, Years Ended December 31, 2021, 2020 and 2019			72
Consolidated Statements of Cash Flows, Years Ended December 31, 2021, 2020 and 2019			73
Notes to Consolidated Financial Statements			74
Financial Statement Schedule III—Schedule of Real Estate and Accumulated Depreciation			124

*(b)*Exhibits filed as part of this report: As listed in the Exhibit Index following the Financial Statement Schedule III-Schedule of Real Estate and Accumulated Depreciation.

			IRON MOUNTAIN 2021 FORM 10-K			66

Part IV

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the Board of Directors of Iron Mountain Incorporated

OPINION ON THE FINANCIAL STATEMENTS

We have audited the accompanying consolidated balance sheets of Iron Mountain Incorporated and subsidiaries (the “Company”) as of December 31, 2021 and 2020, the related consolidated statements of operations, comprehensive income (loss), equity, and cash flows, for each of the three years in the period ended December 31, 2021, and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2021, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 24, 2022, expressed an unqualified opinion on the Company’s internal control over financial reporting.

BASIS FOR OPINION

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the 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 audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the 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 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 financial statements. We believe that our audits provide a reasonable basis for our opinion.

CRITICAL AUDIT MATTER

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the 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.

67			IRON MOUNTAIN 2021 FORM 10-K

Part IV

GOODWILL - GLOBAL DATA CENTER REPORTING UNIT - REFER TO NOTE 2.K. TO THE FINANCIAL STATEMENTS

CRITICAL AUDIT MATTER DESCRIPTION

The Company’s evaluation of goodwill for impairment involves the comparison of the fair value of each reporting unit to its carrying value. The Company determined the fair value of the Global Data Center reporting unit using a combined approach based on the present value of future cash flows (the “Discounted Cash Flow Model”) and market multiples (the “Market Approach”). The determination of the fair value using the Discounted Cash Flow Model requires management to make significant assumptions related to future revenue growth rates, operating margins, discount rates and capital expenditures. The determination of the fair value using the Market Approach requires management to make significant assumptions related to adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) multiples. Changes in economic and operating conditions impacting these assumptions or changes in multiples could result in goodwill impairments in future periods. The goodwill balance allocated to the Global Data Center reporting unit was $429 million as of October 1, 2021 (goodwill impairment testing date). The fair value of the Global Data Center reporting unit exceeded its carrying value as of the measurement date and, therefore, no impairment was recognized.

The Global Data Center reporting unit’s fair value exceeded its carrying value by less than 25%, accordingly, auditing the assumptions used in the goodwill impairment analysis for this reporting unit involved especially subjective judgment.

HOW THE CRITICAL AUDIT MATTER WAS ADDRESSED IN THE AUDIT

Our audit procedures related to future revenue growth rates, operating margins and capital expenditures (collectively, the “Forecast”), the selection of discount rates, and Adjusted EBITDA multiples for the Global Data Center reporting unit included the following, among others:

• We evaluated management’s ability to accurately forecast by comparing actual results to management’s historical forecasts.

• We evaluated the reasonableness of management’s Forecast by comparing it to (1) historical results, (2) internal communications to management and the Board of Directors, and (3) forecasted information included in Company press releases and industry reports of the Company and companies in its peer group.

• With the assistance of our fair value specialists, we evaluated the discount rates, including testing the underlying source information and the mathematical accuracy of the calculations, and developing a range of independent estimates and comparing those to the discount rates selected by management.

• With the assistance of our fair value specialists, we evaluated the Adjusted EBITDA multiples, including testing the underlying source information and mathematical accuracy of the calculations and comparing the multiples selected by management to its guideline companies.

• We tested the effectiveness of controls over the evaluation of goodwill for impairment, including those over the Forecast and the selection of the Adjusted EBITDA multiples and discount rates.

/s/ DELOITTE & TOUCHE LLP

Boston, Massachusetts

February 24, 2022

We have served as the Company’s auditor since 2002.

			IRON MOUNTAIN 2021 FORM 10-K			68

Part IV

IRON MOUNTAIN INCORPORATED

CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

			DECEMBER 31,
			2021						2020
ASSETS
Current Assets:
Cash and cash equivalents			$	255,828					$	205,063
Accounts receivable (less allowances of $62,009 and $56,981 as of December 31, 2021 and 2020, respectively)			961,419						859,344
Prepaid expenses and other			224,020						205,380
Total Current Assets			1,441,267						1,269,787
Property, plant and equipment			8,647,303						8,246,337
Less—Accumulated depreciation			(3,979,159)						(3,743,894)
Property, Plant and Equipment, net			4,668,144						4,502,443
Other Assets, Net:
Goodwill			4,463,531						4,557,609
Customer relationships, customer inducements and data center lease-based intangibles			1,181,043						1,326,977
Operating lease right-of-use assets			2,314,422						2,196,502
Other			381,624						295,949
Total Other Assets, Net			8,340,620						8,377,037
Total Assets			$	14,450,031					$	14,149,267
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of long-term debt			$	309,428					$	193,759
Accounts payable			369,145						359,863
Accrued expenses and other current liabilities (includes current portion of operating lease liabilities)			1,032,537						1,146,288
Deferred revenue			307,470						295,785
Total Current Liabilities			2,018,580						1,995,695
Long-term Debt, net of current portion			8,962,513						8,509,555
Long-term Operating Lease Liabilities, net of current portion			2,171,472						2,044,598
Other Long-term Liabilities			144,053						204,508
Deferred Income Taxes			223,934						198,377
Commitments and Contingencies
Redeemable Noncontrolling Interests			72,411						59,805
Equity:
Iron Mountain Incorporated Stockholders’ Equity:
Preferred stock (par value $0.01; authorized 10,000,000 shares; none issued and outstanding)			—						—
Common stock (par value $0.01; authorized 400,000,000 shares; issued and outstanding 289,757,061 shares and 288,273,049 shares as of December 31, 2021 and 2020, respectively)			2,898						2,883
Additional paid-in capital			4,412,553						4,340,078
(Distributions in excess of earnings) Earnings in excess of distributions			(3,221,152)						(2,950,339)
Accumulated other comprehensive items, net			(338,347)						(255,893)
Total Iron Mountain Incorporated Stockholders’ Equity			855,952						1,136,729
Noncontrolling Interests			1,116						—
Total Equity			857,068						1,136,729
Total Liabilities and Equity			$	14,450,031					$	14,149,267

The accompanying notes are an integral part of these consolidated financial statements.

69			IRON MOUNTAIN 2021 FORM 10-K

Part IV

IRON MOUNTAIN INCORPORATED

CONSOLIDATED STATEMENTS OF OPERATIONS

(IN THOUSANDS, EXCEPT PER SHARE DATA)

			YEAR ENDED DECEMBER 31,
			2021						2020						2019
Revenues:
Storage rental			$	2,870,119					$	2,754,091					$	2,681,087
Service			1,621,412						1,393,179						1,581,497
Total Revenues			4,491,531						4,147,270						4,262,584
Operating Expenses:
Cost of sales (excluding depreciation and amortization)			1,887,229						1,757,342						1,833,315
Selling, general and administrative			1,022,559						949,215						991,664
Depreciation and amortization			680,422						652,069						658,201
Acquisition and Integration Costs			12,764						—						13,293
Restructuring Charges			206,426						194,396						48,597
Intangible impairments			—						23,000						—
(Gain) Loss on disposal/write-down of property, plant and equipment, net			(172,041)						(363,537)						(63,824)
Total Operating Expenses			3,637,359						3,212,485						3,481,246
Operating Income (Loss)			854,172						934,785						781,338
Interest Expense, Net (includes Interest Income of $7,341, $8,312 and $6,559 in 2021, 2020 and 2019, respectively)			417,961						418,535						419,298
Other (Income) Expense, Net			(192,804)						143,545						33,898
Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes			629,015						372,705						328,142
Provision (Benefit) for Income Taxes			176,290						29,609						59,931
Income (Loss) from Continuing Operations			452,725						343,096						268,211
Income (Loss) from Discontinued Operations, Net of Tax			—						—						104
Net Income (Loss)			452,725						343,096						268,315
Less: Net Income (Loss) Attributable to Noncontrolling Interests			2,506						403						938
Net Income (Loss) Attributable to Iron Mountain Incorporated			$	450,219					$	342,693					$	267,377
Earnings (Losses) per Share:
Net Income (Loss) Attributable to Iron Mountain Incorporated - Basic			$	1.56					$	1.19					$	0.93
Net Income (Loss) Attributable to Iron Mountain Incorporated - Diluted			$	1.55					$	1.19					$	0.93
Weighted Average Common Shares Outstanding:
Basic			289,457						288,183						286,971
Diluted			290,975						288,643						287,687

The accompanying notes are an integral part of these consolidated financial statements.

			IRON MOUNTAIN 2021 FORM 10-K			70

Part IV

IRON MOUNTAIN INCORPORATED

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(IN THOUSANDS)

			YEAR ENDED DECEMBER 31,
			2021						2020						2019
Net Income (Loss)			$	452,725					$	343,096					$	268,315
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustment			(136,410)						45,779						11,994
Change in Fair Value of Derivative Instruments			52,380						(39,947)						(8,783)
Total Other Comprehensive (Loss) Income			(84,030)						5,832						3,211
Comprehensive Income (Loss)			368,695						348,928						271,526
Comprehensive Income (Loss) Attributable to Noncontrolling Interests			930						(453)						1,066
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated			$	367,765					$	349,381					$	270,460

The accompanying notes are an integral part of these consolidated financial statements.

71			IRON MOUNTAIN 2021 FORM 10-K

Part IV

IRON MOUNTAIN INCORPORATED

CONSOLIDATED STATEMENTS OF EQUITY

(IN THOUSANDS, EXCEPT SHARE DATA)

									IRON MOUNTAIN INCORPORATED STOCKHOLDERS’ EQUITY
									COMMON STOCK												ADDITIONAL PAID-IN CAPITAL						EARNINGS IN EXCESS OF DISTRIBUTIONS (DISTRIBUTIONS IN EXCESS OF EARNINGS)						ACCUMULATED OTHER COMPREHENSIVE ITEMS, NET						NONCONTROLLING INTERESTS									REDEEMABLE NONCONTROLLING INTERESTS
			TOTAL						SHARES						AMOUNTS
Balance, December 31, 2018			$	1,862,463					286,321,009						$	2,863					$	4,263,348					$	(2,139,493)					$	(265,664)					$	1,409								$	70,532
Cumulative-effect adjustment for adoption of ASC 842			5,781						—						—						—						5,781						—						—									—
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation			36,682						978,636						10						36,672						—						—						—									—
Changes in equity related redeemable noncontrolling interests			(1,454)						—						—						(1,454)						—						—						—									(3,136)
Parent cash dividends declared			(708,561)						—						—						—						(708,561)						—						—									—
Foreign currency translation adjustment			11,866						—						—						—						—						11,866						—									128
Change in fair value of derivative instruments			(8,783)						—						—						—						—						(8,783)						—									—
Net income (loss)			266,233						—						—						—						267,377						—						(1,144)									2,082
Noncontrolling interests dividends			—						—						—						—						—						—						—									(1,924)
Balance, December 31, 2019			1,464,227						287,299,645						2,873						4,298,566						(2,574,896)						(262,581)						265									67,682
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation			37,995						973,404						10						37,985						—						—						—									—
Changes in equity related redeemable noncontrolling interests			3,527						—						—						3,527						—						—						—									(4,924)
Parent cash dividends declared			(718,136)						—						—						—						(718,136)						—						—									—
Foreign currency translation adjustment			46,748						—						—						—						—						46,635						113									(969)
Change in fair value of derivative instruments			(39,947)						—						—						—						—						(39,947)						—									—
Net income (loss)			342,315						—						—						—						342,693						—						(378)									781
Noncontrolling interests dividends			—						—						—						—						—						—						—									(2,765)
Balance, December 31, 2020			1,136,729						288,273,049						2,883						4,340,078						(2,950,339)						(255,893)						—									59,805
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation			84,004						1,484,012						15						83,989						—						—						—									—
Changes in equity related redeemable noncontrolling interests			(11,514)						—						—						(11,514)						—						—						—									11,682
Parent cash dividends declared			(721,032)						—						—						—						(721,032)						—						—									—
Foreign currency translation adjustment			(135,165)						—						—						—						—						(134,834)						(331)									(1,245)
Change in fair value of derivative instruments			52,380						—						—						—						—						52,380						—									—
Net income (loss)			450,355						—						—						—						450,219						—						136									2,370
Noncontrolling interests equity contributions			—						—						—						—						—						—						—									2,200
Noncontrolling interests dividends			—						—						—						—						—						—						—									(2,450)
Purchase of noncontrolling interests			1,311						—						—						—						—						—						1,311									2,567
Redemption of noncontrolling interests			—						—						—						—						—						—						—									(2,518)
Balance, December 31, 2021			$	857,068					289,757,061						$	2,898					$	4,412,553					$	(3,221,152)					$	(338,347)					$	1,116								$	72,411

The accompanying notes are an integral part of these consolidated financial statements.

			IRON MOUNTAIN 2021 FORM 10-K			72

Part IV

IRON MOUNTAIN INCORPORATED

CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS)

			YEAR ENDED DECEMBER 31,
			2021						2020						2019
Cash Flows from Operating Activities:
Net income (loss)			$	452,725					$	343,096					$	268,315
(Income) loss from discontinued operations			—						—						(104)
Adjustments to reconcile net income (loss) to cash flows from operating activities:
Depreciation			465,072						447,562						456,323
Amortization (includes amortization of deferred financing costs and discounts of $16,548, $17,376 and $16,740 in 2021, 2020 and 2019, respectively)			231,898						221,883						218,618
Intangible impairments			—						23,000						—
Revenue reduction associated with amortization of permanent withdrawal fees and data center above- and below-market leases			8,852						9,878						13,703
Stock-based compensation expense			61,001						37,674						35,654
Provision (benefit) for deferred income taxes			28,703						(12,986)						(624)
Loss on early extinguishment of debt			—						68,300						—
Gain on IPM Divestment (as defined in Note 4)			(178,983)						—						—
(Gain) loss on disposal/write-down of property, plant and equipment, net			(172,041)						(363,537)						(63,824)
Foreign currency transactions and other, net			(6,656)						78,437						29,838
(Increase) decrease in assets			(174,206)						(15,443)						5,404
Increase (decrease) in liabilities			42,537						149,793						3,352
Cash Flows from Operating Activities-Continuing Operations			758,902						987,657						966,655
Cash Flows from Operating Activities-Discontinued Operations			—						—						—
Cash Flows from Operating Activities			758,902						987,657						966,655
Cash Flows from Investing Activities:
Capital expenditures			(611,082)						(438,263)						(692,983)
Cash paid for acquisitions, net of cash acquired			(203,998)						(118,581)						(58,237)
Acquisition of customer relationships			(5,892)						(4,346)						(46,105)
Customer inducements			(7,402)						(10,644)						(9,371)
Contract fulfillment costs and third party commissions			(58,524)						(60,020)						(76,171)
Net proceeds from IPM Divestment			213,878						—						—
Investments in Joint Ventures and other investments			(78,623)						(18,250)						(19,222)
Proceeds from sales of property and equipment and other, net (including real estate)			278,330						564,664						166,143
Cash Flows from Investing Activities-Continuing Operations			(473,313)						(85,440)						(735,946)
Cash Flows from Investing Activities-Discontinued Operations			—						—						5,061
Cash Flows from Investing Activities			(473,313)						(85,440)						(730,885)
Cash Flows from Financing Activities:
Repayment of revolving credit facilities, term loan facilities and other debt			(5,164,483)						(8,604,394)						(14,535,115)
Proceeds from revolving credit facilities, term loan facilities and other debt			4,972,214						7,939,458						14,059,818
Early redemption of senior subordinated and senior notes, including call premiums			—						(2,942,554)						—
Net proceeds from sales of senior notes			737,812						3,465,000						987,500
Debt repayment and equity distribution to noncontrolling interests			(2,450)						(2,765)						(1,924)
Purchase of noncontrolling interest			(75,000)						—						—
Parent cash dividends			(718,340)						(716,290)						(704,526)
Net proceeds (payments) associated with employee stock-based awards			25,860						321						1,027
Debt financing costs and other, net			3,581						(25,475)						(5,753)
Cash Flows from Financing Activities-Continuing Operations			(220,806)						(886,699)						(198,973)
Cash Flows from Financing Activities-Discontinued Operations			—						—						—
Cash Flows from Financing Activities			(220,806)						(886,699)						(198,973)
Effect of Exchange Rates on Cash and Cash Equivalents			(14,018)						(4,010)						(8,727)
Increase (decrease) in Cash and Cash Equivalents			50,765						11,508						28,070
Cash and Cash Equivalents, including Restricted Cash, Beginning of Year			205,063						193,555						165,485
Cash and Cash Equivalents, including Restricted Cash, End of Year			$	255,828					$	205,063					$	193,555
Supplemental Information:
Cash Paid for Interest			$	428,111					$	390,332					$	394,984
Cash Paid for Income Taxes, Net			$	130,292					$	43,468					$	61,691
Non-Cash Investing and Financing Activities:
Financing Leases			$	50,552					$	55,782					$	32,742
Accrued Capital Expenditures			$	88,210					$	91,528					$	82,345
Accrued Purchase Price and Other Holdbacks			$	—					$	—					$	4,135
Dividends Payable			$	190,559					$	187,867					$	186,021

The accompanying notes are an integral part of these consolidated financial statements.

73			IRON MOUNTAIN 2021 FORM 10-K

Part IV

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2021

(In thousands, except share and per share data)

1. NATURE OF BUSINESS

The accompanying financial statements represent the consolidated accounts of Iron Mountain Incorporated, a Delaware corporation (“IMI”), and its subsidiaries (“we” or “us”). We help organizations around the world protect their information, reduce storage costs, comply with regulations, facilitate corporate disaster recovery, and better use their information and information technology (“IT”) infrastructure for business advantages, regardless of its format, location or life cycle stage. We do this by storing physical records and data backup media, offering information management solutions, and providing data center space for enterprise-class colocation and opportunistic hyperscale deployments. We offer comprehensive records and information management services and data management services, along with the expertise and experience to address complex storage and information management challenges such as rising storage rental costs, legal and regulatory compliance, and disaster recovery requirements. We provide secure and reliable data center facilities to protect digital information and ensure the continued operation of our customers’ IT infrastructure, with reliable and flexible deployment options.

In March 2020, the World Health Organization declared a novel strain of coronavirus (“COVID-19”) a pandemic. The broader impacts of the COVID-19 pandemic on our financial position, results of operations and cash flows, including impacts to the estimates we use in the preparation of our financial statements, remain uncertain and difficult to predict as information continues to evolve, and the severity and duration of the pandemic, including new variants of COVID-19 that may emerge, remains unknown, as is our visibility of its effect on the markets we serve and our customers within those markets.

In October 2019, we announced a global program designed to better position us for future growth and achievement of our strategic objectives (“Project Summit”). As of December 31, 2021, we have completed Project Summit. See Note 13.

We have been organized and have operated as a real estate investment trust for United States federal income tax purposes (“REIT”) beginning with our taxable year ended December 31, 2014.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. PRINCIPLES OF CONSOLIDATION

The accompanying financial statements reflect our financial position, results of operations, comprehensive income (loss), equity and cash flows on a consolidated basis. All intercompany transactions and account balances have been eliminated.

B. USE OF ESTIMATES

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires us to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities at the date of the financial statements and for the period then ended. On an ongoing basis, we evaluate the estimates used. We base our estimates on historical experience, actuarial estimates, current conditions and various other assumptions that we believe to be reasonable under the circumstances. These estimates form the basis for making judgments about the carrying values of assets and liabilities and are not readily apparent from other sources. Actual results may differ from these estimates.

C. FOREIGN CURRENCY

Local currencies are the functional currencies for our operations outside the United States, with the exception of certain foreign holding companies, whose functional currency is the United States dollar. In those instances where the local currency is the functional currency, assets and liabilities are translated at period-end exchange rates, and revenues and expenses are translated at average exchange rates for the applicable period. See Note 2.q.

			IRON MOUNTAIN 2021 FORM 10-K			74

Part IV

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

D. CASH, CASH EQUIVALENTS AND RESTRICTED CASH

Cash and cash equivalents include cash on hand and cash invested in highly liquid short-term securities, which have remaining maturities at the date of purchase of less than 90 days. Cash and cash equivalents are carried at cost, which approximates fair value.

E. ALLOWANCE FOR DOUBTFUL ACCOUNTS AND CREDIT MEMO RESERVES

We maintain an allowance for doubtful accounts and a credit memo reserve for estimated losses resulting from the potential inability of our customers to make required payments and potential disputes regarding billing and service issues.

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments-Credit Losses-Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 changes how entities will measure credit losses on most financial assets. The standard eliminates the probable initial recognition of estimated losses and provides a forward-looking expected credit loss model for accounts receivable, loans and other financial instruments.

On January 1, 2020 we adopted ASU 2016-13 on a modified retrospective basis for all financial assets measured at amortized cost. The adoption of ASU 2016-13 did not result in a material impact on our consolidated financial statements. Under ASU 2016-13, we calculate and monitor our allowance considering future potential economic and macroeconomic conditions and reasonable and supportable forecasts for expected future collectability of our outstanding receivables, in addition to considering our past loss experience, current and prior trends in our aged receivables and credit memo activity. Our considerations when calculating our allowance include, but are not limited to, the following: the location of our businesses, the composition of our customer base, our product and service lines, potential future economic unrest, and potential future macroeconomic factors, including natural disasters and any impacts associated with the COVID-19 pandemic. Continued adjustments will be made should there be any material change to reasonable and supportable forecasts that may impact our likelihood of collection, as it becomes evident. Our highly diverse global customer base, with no single customer accounting for more than approximately 1% of revenue during the years ended December 31, 2021, 2020 and 2019, limits our exposure to concentration of credit risk. Additionally, we write off uncollectible balances as circumstances warrant, generally, no later than one year past due.

Prior to our adoption of ASU 2016-13, we maintained an allowance for doubtful accounts for estimated losses resulting from the potential inability of our customers to make required payments and potential disputes regarding billing and service issues. When calculating the allowance, we considered our past loss experience, current and prior trends in our aged receivables and credit memo activity, current economic conditions, and specific circumstances of individual receivable balances. If the financial condition of our customers were to significantly change, resulting in a significant improvement or impairment of their ability to make payments, an adjustment of the allowance might have been required.

A rollforward of allowance for doubtful accounts and credit memo reserves is as follows:

YEAR ENDED DECEMBER 31,						BALANCE AT BEGINNING OF THE YEAR						CREDIT MEMOS CHARGED TO REVENUE						ALLOWANCE FOR BAD DEBTS CHARGED TO EXPENSE						DEDUCTIONS AND OTHER**(1)**						BALANCE AT END OF THE YEAR
2021						$	56,981					$	47,931					$	26,896					$	(69,799)					$	62,009
2020						42,856						55,118						34,411						(75,404)						56,981
2019						43,584						51,846						19,389						(71,963)						42,856

(1)Primarily consists of the issuance of credit memos, the write-off of accounts receivable, allowances associated with businesses acquired and the impact associated with currency translation adjustments.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

F. CONCENTRATIONS OF CREDIT RISK

Financial instruments that potentially subject us to credit risk consist principally of cash and cash equivalents (including money market funds and time deposits) and accounts receivable. The only significant concentrations of liquid investments as of December 31, 2021 and 2020 related to cash and cash equivalents. At December 31, 2021 and 2020, we had money market funds with four “Triple A” rated money market funds and time deposits with one global bank. As per our risk management investment policy, we limit exposure to concentration of credit risk by limiting the amount invested in any one mutual fund to a maximum of 1% of the fund's total assets or in any one financial institution to a maximum of $75,000. See Note 2.o.

G. PREPAID EXPENSES AND ACCRUED EXPENSES

There are no prepaid expenses with items greater than 5% of total current assets as of December 31, 2021 and 2020.

Accrued expenses and other current liabilities, with items greater than 5% of total current liabilities are shown separately, and consist of the following:

						DECEMBER 31,
DESCRIPTION						2021						2020
Interest						$	124,764					$	131,448
Dividends						190,559						187,867
Operating lease liabilities						259,597						250,239
Other						457,617						576,734
Accrued expenses and other current liabilities						$	1,032,537					$	1,146,288

H. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are stated at cost and depreciated using the straight-line method with the following useful lives (in years):

DESCRIPTION			RANGE
Buildings and building improvements			5 to 40
Leasehold improvements			5 to 10 or life of the lease (whichever is shorter)
Racking			1 to 20 or life of the lease (whichever is shorter)
Warehouse equipment/vehicles			1 to 10
Furniture and fixtures			1 to 10
Computer hardware and software			2 to 5

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Property, plant and equipment (including financing leases in the respective category), at cost, consist of the following:

						DECEMBER 31,
DESCRIPTION						2021						2020
Land						$	372,411					$	354,395
Buildings and building improvements						3,391,143						3,040,253
Leasehold improvements						1,054,757						969,273
Racking						2,075,473						2,083,199
Warehouse equipment/vehicles						494,464						499,787
Furniture and fixtures						50,692						52,978
Computer hardware and software						823,649						746,993
Construction in progress						384,714						499,459
Property, plant and equipment						$	8,647,303					$	8,246,337

Minor maintenance costs are expensed as incurred. Major improvements which extend the life, increase the capacity or improve the safety or the efficiency of property owned are capitalized and depreciated. Major improvements to leased buildings are capitalized as leasehold improvements and depreciated.

We capitalize interest expense during the active construction period of major capital projects. Capitalized interest is added to the cost of the underlying assets and is amortized over the useful lives of the assets. During the years ended December 31, 2021, 2020 and 2019, capitalized interest is as follows:

						YEAR ENDED DECEMBER 31,
						2021						2020						2019
Capitalized interest						$	12,673					$	14,321					$	15,980

We develop various software applications for internal use. Computer software costs associated with internal use software are expensed as incurred until certain capitalization criteria are met. Third party consulting costs, as well as payroll and related costs for employees directly associated with, and devoting time to, the development of internal use computer software projects (to the extent time is spent directly on the project) are capitalized. Capitalization begins when the design stage of the application has been completed and it is probable that the project will be completed and used to perform the function intended. Capitalization ends when the asset is ready for its intended use. Depreciation begins when the software is placed in service. Computer software costs that are capitalized are periodically evaluated for impairment.

During the years ended December 31, 2021, 2020 and 2019, capitalized costs associated with the development of internal use computer software projects are as follows:

			YEAR ENDED DECEMBER 31,
			2021						2020						2019
Capitalized costs associated with the development of internal use computer software projects			$	48,557					$	38,329					$	34,650

Entities are required to record the fair value of a liability for an asset retirement obligation in the period in which it is incurred. Asset retirement obligations represent the costs to replace or remove tangible long-lived assets required by law, regulatory rule or contractual agreement. Our asset retirement obligations are primarily the result of requirements under our facility lease agreements which generally have “return to original condition” clauses which would require us to remove or restore items such as shred pits, vaults, demising walls and office build-outs, among others. The significant assumptions used in estimating our aggregate asset retirement obligations are the timing of removals, the probability of a requirement to perform, estimated cost and associated expected inflation rates that are consistent with historical rates and credit-adjusted risk-free rates that approximate our incremental borrowing rate. Our asset retirement obligations at December 31, 2021 and 2020 were $36,493 and $34,537, respectively.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

I. LEASES

We lease facilities for certain warehouses, data centers and office space. We also have land leases, including those on which certain facilities are located. The majority of our leased facilities are classified as operating leases that, on average, have initial lease terms of five to 10 years, with one or more lease renewal options to extend the lease term. Our lease renewal option terms generally range from one to five years. The exercise of the lease renewal option is at our sole discretion and may contain fixed rent, fair market value based rent or Consumer Price Index rent escalation clauses. We include option periods in the lease term when our failure to renew the lease would result in an economic disincentive, thereby making it reasonably certain that we will renew the lease. We recognize straight line rental expense over the life of the lease and any fair market value or Consumer Price Index rent escalations are recognized as variable lease expense in the period in which the obligation is incurred. In addition, we lease certain vehicles and equipment. Vehicle and equipment leases typically have lease terms ranging from one to seven years.

We account for all leases, both operating and financing, in accordance with Accounting Standards Codification ("ASC") Topic 842 Leases, ("ASC 842"). Our accounting policy provides that leases with an initial term of 12 months or less will not be included within the lease right-of-use assets and lease liabilities recognized on our Consolidated Balance Sheets. We will continue to recognize the lease payments for those leases with an initial term of 12 months or less in our Consolidated Statements of Operations on a straight-line basis over the lease term.

The lease right-of-use assets and related lease liabilities are classified as either operating or financing. Lease right-of-use assets are calculated as the net present value of future payments plus any capitalized initial direct costs less any tenant improvements or lease incentives. Lease liabilities are calculated as the net present value of future payments. In calculating the present value of the lease payments, we utilize the rate stated in the lease (in the limited circumstances when such rate is explicitly stated) or, if no rate is explicitly stated, we utilize a rate that reflects our securitized incremental borrowing rate by geography for the lease term. We account for nonlease components (which include common area maintenance, taxes, and insurance) with the related lease component. Any variable nonlease components are not included within the lease right-of-use asset and lease liability on our Consolidated Balance Sheets, and instead, are reflected as an expense in the period incurred.

At January 1, 2019, we recognized the cumulative effect of initially applying ASC 842 as an adjustment to the opening balance of (Distributions in excess of earnings) Earnings in excess of distributions, resulting in an increase of approximately $5,800 to stockholders’ equity due to certain build to suit leases that were accounted for as financing leases under ASC 840, Leases, but are accounted for as operating leases under ASC 842.

Operating and financing lease right-of-use assets and lease liabilities as of December 31, 2021 and 2020 are as follows:

						DECEMBER 31,
DESCRIPTION						2021						2020
Assets:
Operating lease right-of-use assets(1)						$	2,314,422					$	2,196,502
Financing lease right-of-use assets, net of accumulated depreciation(2)(3)						298,049						310,534
Liabilities:
Current
Operating lease liabilities						$	259,597					$	250,239
Financing lease liabilities(3)						41,168						43,149
Long-term
Operating lease liabilities						$	2,171,472					$	2,044,598
Financing lease liabilities(3)						315,561						323,162

(1)At December 31, 2021 and 2020, these assets are comprised of approximately 99% real estate related assets (which include land, buildings and racking) and 1% non-real estate related assets (which include warehouse equipment, vehicles, furniture and fixtures and computer hardware and software).

(2)At December 31, 2021, these assets are comprised of approximately 69% real estate related assets and 31% non-real estate related assets. At December 31, 2020, these assets are comprised of approximately 72% real estate related assets and 28% non-real estate related assets.

(3)Financing lease right-of-use assets, current financing lease liabilities and long-term financing lease liabilities are included within Property, Plant and Equipment, Net, Current portion of long-term debt and Long-term Debt, net of current portion, respectively, within our Consolidated Balance Sheets.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

The components of the lease expense for the years ended December 31, 2021, 2020 and 2019 are as follows:

						YEAR ENDED DECEMBER 31,
DESCRIPTION						2021						2020						2019
Operating lease cost(1)						$	545,097					$	499,464					$	459,619
Financing lease cost:
Depreciation of financing lease right-of-use assets						$	50,970					$	51,629					$	59,258
Interest expense for financing lease liabilities						19,808						19,942						21,031

(1)Operating lease cost, the majority of which is included in Cost of sales, includes variable lease costs of $111,949, $111,501 and $105,922 for the years ended December 31, 2021, 2020 and 2019, respectively.

Weighted average remaining lease terms and discount rates as of December 31, 2021 and 2020 are as follows:

			DECEMBER 31, 2021												DECEMBER 31, 2020
			OPERATING LEASES						FINANCING LEASES						OPERATING LEASES						FINANCING LEASES
Remaining Lease Term			10.9 years						10.9 years						11.1 years						11.5 years
Discount Rate			6.6		%				5.9		%				6.9		%				5.9		%

The estimated minimum future lease payments as of December 31, 2021, are as follows:

YEAR						OPERATING LEASES**(1)**						SUBLEASE INCOME						FINANCING LEASES**(1)**
2022						$	399,242					$	5,838					$	55,115
2023						380,690						5,208						50,122
2024						353,617						3,631						41,150
2025						328,320						1,504						38,600
2026						296,895						1,075						34,731
Thereafter						1,706,142						2,271						235,872
Total minimum lease payments						3,464,906						$	19,527					455,590
Less amounts representing interest or imputed interest						(1,033,837)												(98,861)
Present value of lease obligations						$	2,431,069											$	356,729

(1)Estimated minimum future lease payments exclude variable common area maintenance charges, insurance and taxes.

At December 31, 2021, we had 14 leases which we have signed but which have not yet commenced and are not included in our lease obligation table above. The total undiscounted minimum lease payments for these leases are approximately $456,700 and have lease terms that range from 10 to 25 years. Each of these leases is expected to commence during 2022. The largest of these leases is for a facility in the United Kingdom that is currently under construction. The exact terms of the lease will be determined upon the completion of building construction, which is expected to occur during late 2022. We expect the rent due in the first year of the lease to be approximately $5,000, and we expect the term of the lease to be approximately 25 years.

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IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Other information: Supplemental cash flow information relating to our leases for the years ended December 31, 2021, 2020 and 2019 is as follows:

						YEAR ENDED DECEMBER 31,
CASH PAID FOR AMOUNTS INCLUDED IN MEASUREMENT OF LEASE LIABILITIES:						2021						2020						2019
Operating cash flows used in operating leases						$	392,987					$	360,088					$	338,059
Operating cash flows used in financing leases (interest)						19,808						19,942						21,031
Financing cash flows used in financing leases						46,118						47,829						58,033
NON-CASH ITEMS:
Operating lease modifications and reassessments						$	144,310					$	143,382					$	108,023
New operating leases (including acquisitions and sale-leaseback transactions)						282,490						370,011						170,464

J. LONG-LIVED ASSETS

We review long-lived assets, including all finite-lived intangible assets, for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable. Recoverability of these assets is determined by comparing the sum of the forecasted undiscounted net cash flows of the operation to which the assets relate to their carrying amount. The operations are generally distinguished by the business segment and geographic region in which they operate. If it is determined that we are unable to recover the carrying amount of the assets, the long-lived assets are written down, on a pro rata basis, to fair value. Fair value is determined based on discounted cash flows or appraised values, depending upon the nature of the assets. Long-lived assets, including finite-lived intangible assets, are amortized over their useful lives. Annually, or more frequently if events or circumstances warrant, we assess whether a change in the lives over which long-lived assets, including finite-lived intangible assets, are amortized is necessary.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Consolidated gain on disposal/write-down of property, plant and equipment, net for the years ended December 31, 2021, 2020 and 2019 is as follows:

			YEAR ENDED DECEMBER 31,
			2021**(1)**			2020**(1)**			2019
Consolidated gain on disposal/write-down of property, plant and equipment, net			$	172,041		$	363,537		$	63,824
The gains primarily consisted of:			•Gains associated with sale and sale-leaseback transactions of approximately $164,000, of which (i) approximately $127,400 relates to the sale-leaseback transactions of five facilities in the United Kingdom during the second quarter of 2021 and (ii) approximately $36,600 relates to the sale and sale-leaseback transactions of nine facilities in the United States during the fourth quarter of 2021.			•Gains associated with sale-leaseback transactions of approximately $342,100, of which (i) approximately $265,600 relates to the sale-leaseback transactions of 14 facilities in the United States during the fourth quarter of 2020 and (ii) approximately $76,400 relates to the sale-leaseback transactions of two facilities in the United States during the third quarter of 2020. •Gains of approximately $24,100 associated with the Frankfurt JV Transaction (as defined in Note 3).			•Gains associated with sale and sale-leaseback transactions of approximately $67,800 in the United States. •The sale of certain land and buildings of approximately $36,000 in the United Kingdom. Partially offset by losses from: •The impairment charge on the assets associated with the select offerings within our Iron Mountain Iron Cloud portfolio and loss on the subsequent sale of certain IT infrastructure assets and rights to certain hardware and maintenance contracts used to deliver these offerings of approximately $25,000. •The write-down of certain property, plant and equipment of approximately $15,700 in the United States.

(1) The gains recognized associated with the sale and sale-leaseback transactions during the years ended December 31, 2021 and 2020 are part of our program to monetize a small portion of our industrial real estate assets. The terms for these leases are consistent with the terms of our lease portfolio, which are disclosed in Note 2.i.

K. GOODWILL AND OTHER INDEFINITE-LIVED INTANGIBLE ASSETS

Goodwill and intangible assets with indefinite lives are not amortized but are reviewed annually for impairment or more frequently if impairment indicators arise. Other than goodwill, we currently have no intangible assets that have indefinite lives and which are not amortized.

We have selected October 1 as our annual goodwill impairment review date. We have performed our annual goodwill impairment review as of October 1, 2021, 2020 and 2019. We concluded that as of October 1, 2021, 2020 and 2019, goodwill was not impaired. During the first quarter of 2020, as discussed in greater detail below, we concluded that we had a triggering event related to our Fine Arts reporting unit, requiring us to perform an interim goodwill impairment test. We concluded that the fair value of our Fine Arts reporting unit was less than its carrying value, and, therefore, we recorded a $23,000 impairment charge on the goodwill associated with this reporting unit during the first quarter of 2020.

The following is a discussion regarding (i) interim goodwill impairment review for our Fine Arts reporting unit during the first quarter of 2020 and (ii) the reporting units at which level we tested goodwill for impairment as of October 1, 2021 and 2020 and the composition of these reporting units at December 31, 2021 and 2020 (including the amount of goodwill associated with each reporting unit). When changes occur in the composition of one or more reporting units, the goodwill is reassigned to the reporting units affected based upon their relative fair values.

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IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

I. INTERIM GOODWILL IMPAIRMENT REVIEW - FINE ARTS, FIRST QUARTER OF 2020

During the first quarter of 2020, we concluded that we had a triggering event related to our Fine Arts reporting unit, requiring us to perform an interim goodwill impairment test. The primary factor contributing to our conclusion was the expected impact of the COVID-19 pandemic to this particular business and its customers and revenue sources, which caused us to believe it was more likely than not that the carrying value of our Fine Arts reporting unit exceeded its fair value. During the first quarter of 2020, we performed an interim goodwill impairment test for our Fine Arts reporting unit utilizing a discounted cash flow model, with updated assumptions on future revenues, operating expenditures and capital expenditures. We concluded that the fair value of our Fine Arts reporting unit was less than its carrying value, and, therefore, we recorded a $23,000 impairment charge on the goodwill associated with this reporting unit during the first quarter of 2020. Factors that may impact these assumptions include, but are not limited to: (i) our ability to maintain, or grow, storage and retail service revenues in this reporting unit in line with current expectations and (ii) our ability to manage our fixed and variable costs in this reporting unit in line with potential future revenue declines.

II. REPORTING UNITS AS OF OCTOBER 1, 2021 and 2020

Our reporting units at which level we performed our goodwill impairment analysis as of October 1, 2021 and 2020 were as follows:

•North America Records and Information Management ("North America RIM") •Europe Records and Information Management ("Europe RIM") •Latin America Records and Information Management ("Latin America RIM") •Australia and New Zealand Records and Information Management ("ANZ RIM")			•Asia Records and Information Management ("Asia RIM") •Global Data Center •Fine Arts •Entertainment Services

We concluded that the goodwill associated with each of our reporting units was not impaired as of such date. There were no changes to the composition of our reporting units between October 1, 2021 and December 31, 2021 and between October 1, 2020 and December 31, 2020.

GOODWILL BY REPORTING UNIT AS OF DECEMBER 31, 2021 and 2020

The carrying value of goodwill, net for each of our reporting units described above as of December 31, 2021 and 2020 is as follows:

									CARRYING VALUE AS OF DECEMBER 31,
SEGMENT			REPORTING UNIT						2021						2020
Global RIM (as defined in Note 11) Business			North America RIM						$	2,720,049					$	2,719,182
Europe RIM						624,502						641,621
Latin America RIM						107,174						117,834
ANZ RIM						284,042						301,251
Asia RIM						240,494						244,294
Global Data Center Business			Global Data Center						426,074						436,987
Corporate and Other Business			Fine Arts						27,905						15,176
Entertainment Services						33,291						35,159
Technology Escrow Services(1)						—						46,105
Total									$	4,463,531					$	4,557,609

(1)The Technology Escrow Services reporting unit was divested in June 2021 (see Note 4).

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Reporting unit valuations have generally been determined using a combined approach based on the present value of future cash flows (the “Discounted Cash Flow Model”) and market multiples (the “Market Approach”).

The Discounted Cash Flow Model incorporates significant assumptions including future revenue growth rates, operating margins, discount rates and capital expenditures.			The Market Approach requires us to make assumptions related to Adjusted EBITDA (as defined in Note 11) multiples.

Changes in economic and operating conditions impacting these assumptions or changes in multiples could result in goodwill impairments in future periods. In conjunction with our annual goodwill impairment reviews, we reconcile the sum of the valuations of all of our reporting units to our market capitalization as of such dates.

The changes in the carrying value of goodwill attributable to each reportable operating segment for the years ended December 31, 2021 and 2020 are as follows:

			GLOBAL RIM BUSINESS						GLOBAL DATA CENTER BUSINESS						CORPORATE AND OTHER BUSINESS						TOTAL CONSOLIDATED
Goodwill balance, net of accumulated amortization, as of December 31, 2019			$	3,942,901					$	424,568					$	117,740					$	4,485,209
Non-tax deductible goodwill acquired during the year			54,258						—						—						54,258
Goodwill impairment			—						—						(23,000)						(23,000)
Fair value and other adjustments			(3,815)						—						403						(3,412)
Currency effects			30,838						12,419						1,297						44,554
Goodwill balance, net of accumulated amortization, as of December 31, 2020			4,024,182						436,987						96,440						4,557,609
Non-tax deductible goodwill acquired during the year			14,406						—						13,141						27,547
Goodwill allocated to IPM Divestment			—						—						(46,105)						(46,105)
Fair value and other adjustments			(6,091)						—						(1,268)						(7,359)
Currency effects			(56,236)						(10,913)						(1,012)						(68,161)
Goodwill balance, net of accumulated amortization, as of December 31, 2021			$	3,976,261					$	426,074					$	61,196					$	4,463,531
Accumulated Goodwill Impairment Balance as of December 31, 2020			$	132,409					$	—					$	26,011					$	158,420
Accumulated Goodwill Impairment Balance as of December 31, 2021			$	132,409					$	—					$	26,011					$	158,420

L. FINITE-LIVED INTANGIBLE ASSETS AND LIABILITIES

I. CUSTOMER RELATIONSHIP INTANGIBLE ASSETS

Customer relationship intangible assets, which are acquired through either business combinations or acquisitions of customer relationships, are amortized over periods ranging from 10 to 30 years. Customer relationship intangible assets are recorded based upon estimates of their fair value.

II. CUSTOMER INDUCEMENTS

Payments that are made to a customer’s current records management vendor in order to terminate the customer’s existing contract with that vendor (“Permanent Withdrawal Fees”), or direct payments to a customer for which no distinct benefit is received in return, are collectively referred to as "Customer Inducements". Customer Inducements are treated as a reduction of the transaction price over periods ranging from one to 10 years and are included in storage and service revenue in the accompanying Consolidated Statements of Operations. If the customer terminates its relationship with us, the unamortized carrying value of the Customer Inducement intangible asset is charged to revenue. However, in the event of such termination, we generally collect, and record as income, permanent removal fees that generally equal or exceed the amount of the unamortized Customer Inducement intangible asset.

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IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

III. DATA CENTER INTANGIBLE ASSETS AND LIABILITIES

Finite-lived intangible assets associated with our Global Data Center Business consist of the following:

DATA CENTER IN-PLACE LEASE INTANGIBLE ASSETS AND DATA CENTER TENANT RELATIONSHIP INTANGIBLE ASSETS

Data Center In-Place Lease Intangible Assets (“Data Center In-Place Leases”) and Data Center Tenant Relationship Intangible Assets (“Data Center Tenant Relationships”) reflect the value associated with acquiring a data center operation with active tenants as of the date of acquisition. The value of Data Center In-Place Leases is determined based upon an estimate of the economic costs (such as lost revenues, tenant improvement costs, commissions, legal expenses and other costs to acquire new data center leases) avoided by acquiring a data center operation with active tenants that would have otherwise been incurred if the data center operation was purchased vacant. Data Center In-Place Leases are amortized over the weighted average remaining term of the acquired data center leases. The value of Data Center Tenant Relationships is determined based upon an estimate of the economic costs avoided upon lease renewal of the acquired tenants, based upon expectations of lease renewal. Data Center Tenant Relationships are amortized over the weighted average remaining anticipated life of the relationship with the acquired tenant.

DATA CENTER ABOVE-MARKET AND BELOW-MARKET IN-PLACE LEASE INTANGIBLE ASSETS

We record Data Center Above-Market In-Place Lease Intangible Assets (“Data Center Above-Market Leases”) and Data Center Below-Market In-Place Lease Intangible Assets (“Data Center Below-Market Leases”) at the net present value of the difference between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of the fair market lease rates for each corresponding in-place lease. Data Center Above-Market Leases and Data Center Below-Market Leases are amortized over the remaining non-cancellable term of the acquired in-place lease to storage revenue.

The gross carrying amount and accumulated amortization of our finite-lived intangible assets as of December 31, 2021 and 2020, respectively, are as follows:

			DECEMBER 31, 2021												DECEMBER 31, 2020
DESCRIPTION			GROSS CARRYING AMOUNT			ACCUMULATED AMORTIZATION			NET CARRYING AMOUNT						GROSS CARRYING AMOUNT			ACCUMULATED AMORTIZATION			NET CARRYING AMOUNT
Assets:
Customer relationship intangible assets(1)			$	1,835,949		$	(763,943)		$	1,072,006					$	1,852,700		$	(668,547)		$	1,184,153
Customer inducements(1)			51,403			(28,400)			23,003						49,098			(26,923)			22,175
Data center lease-based intangible assets(1)(2)			278,904			(192,870)			86,034						269,988			(149,339)			120,649
Third-party commissions asset(3)			33,947			(13,716)			20,231						34,317			(8,761)			25,556
Liabilities:
Data center below-market leases(4)			$	12,782		$	(6,923)		$	5,859					$	12,854		$	(5,943)		$	6,911

(1)Included in Customer relationships, customer inducements and data center lease-based intangibles in the accompanying Consolidated Balance Sheets as of December 31, 2021 and 2020.

(2)Data center lease-based intangible assets includes Data Center In-Place Leases, Data Center Tenant Relationships and Data Center Above-Market Leases.

(3)Included in Other (within Other Assets, Net) in the accompanying Consolidated Balance Sheets as of December 31, 2021 and 2020.

(4)Included in Other long-term liabilities in the accompanying Consolidated Balance Sheets as of December 31, 2021 and 2020.

			IRON MOUNTAIN 2021 FORM 10-K			84

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IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Amortization expense associated with finite-lived intangible assets, revenue reduction associated with the amortization of Customer Inducements and net revenue reduction associated with the amortization of Data Center Above-Market Leases and Data Center Below-Market Leases for the years ended December 31, 2021, 2020 and 2019 is as follows:

						YEAR ENDED DECEMBER 31,
						2021						2020						2019
Amortization expense included in depreciation and amortization associated with:
Customer relationship intangible assets						$	117,761					$	117,514					$	117,972
Data center in-place leases and tenant relationships						42,333						42,637						46,696
Third-party commissions asset and other finite-lived intangible assets						6,987						7,004						7,957
Revenue reduction associated with amortization of:
Customer inducements and data center above-market and below-market leases						$	8,852					$	9,878					$	13,703

Estimated amortization expense for existing finite-lived intangible assets (excluding Contract Fulfillment Costs, as defined and disclosed in Note 2.r.) is as follows:

						ESTIMATED AMORTIZATION
YEAR						INCLUDED IN DEPRECIATION AND AMORTIZATION						REVENUE REDUCTION ASSOCIATED WITH CUSTOMER INDUCEMENTS AND DATA CENTER ABOVE-MARKET AND BELOW-MARKET LEASES
2022						$	134,107					$	6,367
2023						128,681						4,628
2024						123,412						2,599
2025						117,306						1,506
2026						115,966						1,187
Thereafter						557,040						2,616

M. DEFERRED FINANCING COSTS

Deferred financing costs are amortized over the life of the related debt. If debt is retired early, the related unamortized deferred financing costs are written-off in the period the debt is retired to Other (income) expense, net. See Note 7.

N. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Every derivative instrument is required to be recorded in the balance sheet as either an asset or a liability measured at its fair value. Periodically, we acquire derivative instruments that are intended to hedge either cash flows or values that are subject to foreign exchange or other market price risk and not for trading purposes. We have formally documented our hedging relationships, including identification of the hedging instruments and the hedged items, as well as our risk management objectives and strategies for undertaking each hedge transaction. Given the recurring nature of our revenues and the long-term nature of our asset base, we have the ability and the preference to use long-term, fixed interest rate debt to finance our business, thereby preserving our long-term returns on invested capital. We may use interest rate swaps as a tool to maintain our targeted level of fixed rate debt. In addition, we may enter into cross-currency swaps to hedge the variability of exchange rates between the United States and our foreign subsidiaries, as well as interest rates. We may also use borrowings in foreign currencies, either obtained in the United States or by our foreign subsidiaries, to hedge foreign currency risk associated with our international investments. As of December 31, 2021 and 2020, none of our derivative instruments contained credit-risk related contingent features. See Note 6.

85			IRON MOUNTAIN 2021 FORM 10-K

Part IV

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

O. FAIR VALUE MEASUREMENTS

Entities are permitted under GAAP to elect to measure certain financial instruments and certain other items at either fair value or cost. We have elected the cost measurement option in all circumstances where we had an option.

Our financial assets or liabilities that are carried at fair value are required to be measured using inputs from the three levels of the fair value hierarchy. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The three levels of the fair value hierarchy are as follows:

Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date.

Level 2—Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

Level 3—Unobservable inputs that reflect our assumptions about the assumptions that market participants would use in pricing the asset or liability.

The assets and liabilities carried at fair value and measured on a recurring basis as of December 31, 2021 and 2020, respectively, are as follows:

												FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2021 USING
DESCRIPTION						TOTAL CARRYING VALUE AT DECEMBER 31, 2021						QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1)						SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)						SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Money Market Funds(1)						$	101,022					$	—					$	101,022					$	—
Time Deposits(1)						2,238						—						2,238						—
Trading Securities						11,147						11,062			(2)			85			(3)			—
Derivative Assets(4)						11,021						—						11,021						—
Derivative Liabilities(4)						8,344						—						8,344						—

												FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2020 USING
DESCRIPTION						TOTAL CARRYING VALUE AT DECEMBER 31, 2020						QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1)						SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)						SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Money Market Funds(1)						$	62,657					$	—					$	62,657					$	—
Time Deposits(1)						2,121												2,121						—
Trading Securities						10,892						10,636			(2)			256			(3)			—
Derivative Liabilities(4)						49,703						—						49,703						—

(1)Money market funds and time deposits are measured based on quoted prices for similar assets and/or subsequent transactions.

(2)Certain trading securities are measured at fair value using quoted market prices.

(3)Certain trading securities are measured based on inputs other than quoted market prices that are observable.

(4)Derivative assets and liabilities include (i) interest rate swap agreements, including forward-starting interest rate swap agreements, to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness and (ii) cross-currency swap agreements to hedge the variability of exchange rates impacts between the United States dollar and the Euro and certain of our Euro denominated subsidiaries. Our derivative financial instruments are measured using industry standard valuation models using market-based observable inputs, including interest rate curves, forward and spot prices for currencies and implied volatilities. Credit risk is also factored into the determination of the fair value of our derivative financial instruments. See Note 6 for additional information on our derivative financial instruments.

			IRON MOUNTAIN 2021 FORM 10-K			86

Part IV

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

We did not have any material items that are measured at fair value on a non-recurring basis for the years ended December 31, 2021, 2020, and 2019, with the exception of: (i) the reporting units as presented in our goodwill impairment analysis (as disclosed in Note 2.k.); (ii) those acquired in acquisitions (as disclosed in Note 3); (iii) the redemption value of certain redeemable noncontrolling interests (as disclosed in Note 2.p.); and (iv) our initial investments in the Web Werks JV, the Frankfurt JV and the MakeSpace JV (each as defined in Note 5), all of which are based on Level 3 inputs.

The fair value of our long-term debt, which was determined based on either Level 1 inputs or Level 3 inputs, is disclosed in Note 7. Long-term debt is measured at cost in our Consolidated Balance Sheets as of December 31, 2021 and 2020.

P. REDEEMABLE NONCONTROLLING INTERESTS

Certain unaffiliated third parties own noncontrolling interests in certain of our foreign consolidated subsidiaries. The underlying agreements between us and our noncontrolling interest shareholders for these subsidiaries contain provisions under which the noncontrolling interest shareholders can require us to purchase their respective interests in such subsidiaries at certain times and at a purchase price as stipulated in the underlying agreements (generally at fair value). These put options make these noncontrolling interests redeemable and, therefore, these noncontrolling interests are classified as temporary equity outside of stockholders’ equity. Redeemable noncontrolling interests are reported at the higher of their redemption value or the noncontrolling interest holders’ proportionate share of the underlying subsidiaries net carrying value. Increases or decreases in the redemption value of the noncontrolling interest are offset against Additional Paid-in Capital.

In 2018, one of our noncontrolling interest shareholders exercised its option to put its ownership interest back to us. Upon the exercise of the put option, this noncontrolling interest became mandatorily redeemable by us, and, therefore, was accounted for as a liability rather than a component of redeemable noncontrolling interests. In May 2021, we agreed to final settlement terms and paid the put option price for the noncontrolling interest shares.

Q. ACCUMULATED OTHER COMPREHENSIVE ITEMS, NET

The changes in accumulated other comprehensive items, net for the years ended December 31, 2021, 2020 and 2019 are as follows:

			FOREIGN CURRENCY TRANSLATION AND OTHER ADJUSTMENTS						CHANGE IN FAIR VALUE OF DERIVATIVE INSTRUMENTS						TOTAL
Balance as of December 31, 2018			$	(264,691)					$	(973)					$	(265,664)
Other comprehensive income (loss):
Foreign currency translation and other adjustments			11,866						—						11,866
Change in fair value of derivative instruments			—						(8,783)						(8,783)
Total other comprehensive income (loss)			11,866						(8,783)						3,083
Balance as of December 31, 2019			(252,825)						(9,756)						(262,581)
Other comprehensive income (loss):
Foreign currency translation and other adjustments			46,635						—						46,635
Change in fair value of derivative instruments			—						(39,947)						(39,947)
Total other comprehensive income (loss)			46,635						(39,947)						6,688
Balance as of December 31, 2020			(206,190)						(49,703)						(255,893)
Other comprehensive (loss) income:
Foreign currency translation and other adjustments			(134,834)						—						(134,834)
Change in fair value of derivative instruments			—						52,380						52,380
Total other comprehensive (loss) income			(134,834)						52,380						(82,454)
Balance as of December 31, 2021			$	(341,024)					$	2,677					$	(338,347)

87			IRON MOUNTAIN 2021 FORM 10-K

Part IV

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

R. REVENUES

Our revenues consist of storage rental revenues as well as service revenues and are reflected net of sales and value-added taxes. Storage rental revenues, which are considered a key driver of financial performance for the storage and information management services industry, consist primarily of recurring periodic rental charges related to the storage of materials or data (generally on a per unit basis) that are typically retained by customers for many years and revenues associated with our data center operations. Service revenues include charges for related service activities, the most significant of which include: (1) the handling of records, including the addition of new records, temporary removal of records from storage, refiling of removed records, customer termination and permanent removal fees, project revenues and courier operations, consisting primarily of the pickup and delivery of records upon customer request; (2) destruction services, consisting primarily of secure shredding of sensitive documents and the subsequent sale of shredded paper for recycling, the price of which can fluctuate from period to period; (3) digital solutions, including the scanning, imaging and document conversion services of active and inactive records, and consulting services; and (4) data center services, including set up, monitoring and support of our customers' assets which are protected in our data center facilities, and special project services, including data center fitout.

We account for revenue in accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”). Customers are generally billed monthly based on contractually agreed-upon terms, and storage rental and service revenues are recognized in the month the respective storage rental or service is provided, in line with the transfer of control to the customer. When storage rental fees or services are billed in advance, amounts related to future storage rental or prepaid service contracts are accounted for as deferred revenue and recognized upon the transfer of control to the customer, generally ratably over the contract term. Customer contracts generally include promises to provide monthly recurring storage and related services that are essentially the same over time and have the same pattern of transfer of control to the customer; therefore, most performance obligations represent a promise to deliver a series of distinct services over time (as determined for purposes of ASC 606, a “series”). For those contracts that qualify as a series, we have a right to consideration from the customer in an amount that corresponds directly with the value of the underlying performance obligation transferred to the customer to date. This concept is known as "right to invoice” and we apply the “right to invoice” practical expedient to the majority of all revenues, with the exception of storage revenues in our Global Data Center Business (which are subject to leasing guidance). Additionally, each purchasing decision is fully in the control of the customer and; therefore, consideration beyond the current reporting period is variable and allocated to the specific period to which the consideration relates, which is consistent with the practical expedient.

Our Global Data Center Business features storage rental provided to the customer at contractually specified rates over a fixed contractual period. Storage rental revenue related to the storage component of our Global Data Center Business is recognized on a straight-line basis over the contract term in accordance with ASC 842. The revenue related to the service component of our Global Data Center Business is recognized in the period the related services are provided.

The costs associated with the initial movement of customer records into physical storage and certain commissions are considered costs to obtain or fulfill customer contracts (“Contract Fulfillment Costs”). The following describes our significant Contract Fulfillment Costs recognized under ASC 606:

INTAKE COSTS (AND ASSOCIATED DEFERRED REVENUE)

The costs of the initial intake of customer records into physical storage (“Intake Costs”) are deferred and amortized as a component of depreciation and amortization in our Consolidated Statements of Operations over three years, consistent with the transfer of the performance obligation to the customer to which the asset relates. In instances where such Intake Costs are billed to the customer, the associated revenue is deferred and recognized over the same three-year period.

COMMISSIONS

Certain commission payments that are directly associated with the fulfillment of long-term contracts are capitalized and amortized as a component of depreciation and amortization in our Consolidated Statements of Operations over three years, consistent with the transfer of the performance obligation to the customer to which the asset relates. Certain direct commission payments associated with contracts with a duration of one year or less are expensed as incurred under the practical expedient which allows an entity to expense as incurred an incremental cost of obtaining a contract if the amortization period of the asset that the entity otherwise would have recognized is one year or less.

			IRON MOUNTAIN 2021 FORM 10-K			88

Part IV

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Contract Fulfillment Costs, which are included as a component of Other within Other Assets, Net, as of December 31, 2021 and 2020 are as follows:

						DECEMBER 31, 2021																		DECEMBER 31, 2020
DESCRIPTION						GROSS CARRYING AMOUNT						ACCUMULATED AMORTIZATION						NET CARRYING AMOUNT						GROSS CARRYING AMOUNT						ACCUMULATED AMORTIZATION						NET CARRYING AMOUNT
Intake Costs asset						$	71,336					$	(42,678)					$	28,658					$	63,721					$	(33,352)					$	30,369
Commissions asset						114,791						(50,553)						64,238						91,069						(38,787)						52,282

Amortization expense associated with the Intake Costs and Commissions assets for the years ended December 31, 2021, 2020 and 2019 are as follows:

						YEAR ENDED DECEMBER 31,
DESCRIPTION						2021						2020						2019
Intake Costs asset						$	17,530					$	13,300					$	10,144
Commissions asset						30,739						24,052						19,109

Estimated amortization expense for Contract Fulfillment Costs is as follows:

YEAR						ESTIMATED AMORTIZATION
2022						$	47,393
2023						30,083
2024						15,420

Deferred revenue liabilities are reflected as follows in our Consolidated Balance Sheets:

									DECEMBER 31,
DESCRIPTION			LOCATION IN BALANCE SHEET						2021						2020
Deferred revenue - Current			Deferred revenue						$	307,470					$	295,785
Deferred revenue - Long-term			Other Long-term Liabilities						33,691						35,612

DATA CENTER LESSOR CONSIDERATIONS

Our Global Data Center Business features storage rental provided to customers at contractually specified rates over a fixed contractual period. Our data center revenue contracts are accounted for in accordance with ASC 842. ASC 842 provides a practical expedient which allows lessors to account for nonlease components (such as power and connectivity, in the case of our Global Data Center Business) with the related lease component if both the timing and pattern of transfer are the same for nonlease components and the lease component, and the lease component, if accounted for separately, would be classified as an operating lease. The single combined component is accounted for under ASC 842 if the lease component is the predominant component and is accounted for under ASC 606 if the nonlease components are the predominant components. We have elected to take this practical expedient.

89			IRON MOUNTAIN 2021 FORM 10-K

Part IV

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Storage rental revenue, including revenue associated with power and connectivity, associated with our Global Data Center Business for the years ended December 31, 2021, 2020 and 2019 are as follows:

						YEAR ENDED DECEMBER 31,
						2021						2020						2019
Storage rental revenue(1)						$	289,592					$	263,695					$	246,925

(1)Revenue associated with power and connectivity included within storage rental revenue was $62,185, $47,451 and $43,269 for the years ended December 31, 2021, 2020 and 2019, respectively.

The revenue related to the service component of our Global Data Center Business is recognized in the period the related services are provided.

The future minimum lease payments we expect to receive under non-cancellable data center operating leases for which we are the lessor, excluding month to month leases, for the next five years are as follows:

YEAR						FUTURE MINIMUM LEASE PAYMENTS
2022						$	266,109
2023						218,324
2024						179,169
2025						126,269
2026						98,440

S. STOCK-BASED COMPENSATION

We record stock-based compensation expense, utilizing the straight-line method, for the cost of stock options, restricted stock units (“RSUs”), performance units (“PUs”) and shares of stock issued under our employee stock purchase plan (“ESPP”) (together, "Employee Stock-Based Awards”).

For our Employee Stock-Based Awards made on or after February 20, 2019, we have included the following retirement provision:

• Upon an employee’s retirement on or after attaining age 58, if the sum of (i) the award recipient’s age at retirement and (ii) the award recipient’s years of service with the company totals at least 70, the award recipient is entitled to continued vesting of any outstanding Employee Stock-Based Awards, provided that, for awards granted in the year of retirement, their retirement occurs on or after July 1 (the “Retirement Criteria”).

• Accordingly, (i) grants of Employee Stock-Based Awards to an employee who has met the Retirement Criteria on or before the date of grant, or will meet the Retirement Criteria before July 1 of the year of the grant, will be expensed between the date of grant and July 1 of the grant year and (ii) grants of Employee Stock-Based Awards to employees who will meet the Retirement Criteria during the award’s normal vesting period will be expensed between the date of grant and the date upon which the award recipient meets the Retirement Criteria.

• Stock options and RSUs granted to recipients who meet the Retirement Criteria will continue vesting on the original vesting schedule. If an employee retires and has met the Retirement Criteria, stock options generally will remain exercisable for up to three years or the original expiration date of the stock options, if earlier. PUs granted to recipients who meet the Retirement Criteria will continue to vest and be delivered in accordance with the original vesting schedule of the applicable PU award and remain subject to the same performance conditions.

			IRON MOUNTAIN 2021 FORM 10-K			90

Part IV

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Stock-based compensation expense for Employee Stock-Based Awards included in the accompanying Consolidated Statements of Operations for the years ended December 31, 2021, 2020 and 2019 is as follows:

			YEAR ENDED DECEMBER 31,
			2021						2020						2019
Stock-based compensation expense			$	61,001					$	37,674					$	35,654
Stock-based compensation expense, after tax			59,243						36,584						33,103

The substantial majority of stock-based compensation expense for Employee Stock-Based Awards is included in Selling, general and administrative expenses in the accompanying Consolidated Statements of Operations.

STOCK OPTIONS

Options are generally granted with exercise prices equal to the market price of the stock on the date of grant; however, in certain instances, options are granted at prices greater than the market price of the stock on the date of grant. The substantial majority of options we issue become exercisable ratably over a period three years from the date of grant and have a contractual life of 10 years from the date of grant, unless the holder’s employment is terminated sooner. Our non-employee directors are considered employees for purposes of our stock option plans and stock option reporting.

Our stock options outstanding at December 31, 2021 are based on the three-year vesting period (10 year contractual life) described above.

Our equity compensation plans generally provide that, upon a vesting change in control (as defined in each plan), any unvested options and other awards granted thereunder shall vest immediately if an employee is terminated as a result of the change in control or terminates their own employment for good reason (as defined in each plan). On January 20, 2015, our stockholders approved the adoption of the Iron Mountain Incorporated 2014 Stock and Cash Incentive Plan, as amended (the "2014 Plan”).

In May 2021, our stockholders approved an amendment to the 2014 Plan to (i) increase the number of shares of our common stock authorized for issuance thereunder by 8,000,000 from 12,750,000 to 20,750,000, (ii) extend the termination date of the 2014 Plan from May 24, 2027 to May 12, 2031, (iii) provide that, other than in specified circumstances, no equity-based award will vest before the first anniversary of the date of grant and (iv) provide that dividends and dividend equivalents are not paid with respect to stock options or stock appreciation rights.

A total of 20,750,000 shares of common stock have been reserved for grants of options and other rights under our various stock incentive plans, including the 2014 Plan. The number of shares available for grant under our various stock incentive plans, not including the ESPP, at December 31, 2021 was 9,055,756.

The weighted average fair value of stock options granted in 2021, 2020 and 2019 was $3.23, $2.35 and $3.58 per share, respectively. These values were estimated on the date of grant using the Black-Scholes option pricing model. The weighted average assumptions used for grants in the years ended December 31, 2021, 2020 and 2019 are as follows:

						YEAR ENDED DECEMBER 31,
WEIGHTED AVERAGE ASSUMPTIONS						2021						2020						2019
Expected volatility(1)						28.3		%				25.4		%				24.3		%
Risk-free interest rate(2)						1.45		%				1.45		%				2.47		%
Expected dividend yield(3)						7		%				7		%				7		%
Expected life(4)						10.0 years						10.0 years						5.0 years

(1)Expected volatility is calculated utilizing daily historical volatility over a period that equates to the expected life of the option.

(2)Risk-free interest rate is based on the United States Treasury interest rates whose term is consistent with the expected life (estimated period of time outstanding) of the stock options.

(3)Expected dividend yield is considered in the option pricing model and represents our current annualized expected per share dividends over the current trade price of our common stock.

(4)Expected life of the stock options granted is estimated using the historical exercise behavior of employees.

91			IRON MOUNTAIN 2021 FORM 10-K

Part IV

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

A summary of stock option activity for the year ended December 31, 2021 is as follows:

			OPTIONS						WEIGHTED AVERAGE EXERCISE PRICE						WEIGHTED AVERAGE REMAINING CONTRACTUAL TERM (YEARS)						AGGREGATE INTRINSIC VALUE
Outstanding at December 31, 2020			4,732,519						$	35.83
Granted			429,618						34.73
Exercised			(869,855)						34.26
Forfeited			(16,304)						35.37
Expired			(51,905)						34.27
Outstanding at December 31, 2021			4,224,073						$	36.06					5.75						$	68,747
Options exercisable at December 31, 2021			3,168,908						$	36.60					4.90						$	49,850
Options expected to vest			1,054,641						$	34.42					8.34						$	18,888

RESTRICTED STOCK UNITS

Our RSUs generally have a vesting period of three years from the date of grant. However, RSUs granted to our non-employee directors vest immediately upon grant. All RSUs accrue dividend equivalents associated with the underlying stock as we declare dividends. Dividends will generally be paid to holders of RSUs in cash upon the vesting date of the associated RSU and will be forfeited if the RSU does not vest. The fair value of RSUs is the excess of the market price of our common stock at the date of grant over the holder's purchase price (which is typically zero).

The fair value of RSUs vested during the years ended December 31, 2021, 2020 and 2019, are as follows:

			YEAR ENDED DECEMBER 31,
			2021						2020						2019
Fair value of RSUs vested			$	29,332					$	26,492					$	21,191

A summary of RSU activity for the year ended December 31, 2021 is as follows:

			RSUs						WEIGHTED-AVERAGE GRANT-DATE FAIR VALUE
Non-vested at December 31, 2020			1,294,006						$	33.02
Granted			1,178,170						34.98
Vested			(862,377)						34.01
Forfeited			(206,166)						32.65
Non-vested at December 31, 2021			1,403,633						$	34.11

PERFORMANCE UNITS

The PUs we issue vest based on our performance against predefined operational and share based targets. For awards granted in 2019 and thereafter, the vesting is subject to a minimum level of return on invested capital (“ROIC”) in the third year of the performance period, and thereafter the number of PUs earned is based on (i) the revenue performance for each year averaged at the end of the three-year performance period, (ii) the revenue exit rate of new products in the last quarter of the three-year performance period and (iii) a relative TSR target. With respect to the PUs granted in 2019 and thereafter, the number of PUs earned may range from 0% to approximately 238% of the initial award.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

All of our PUs will be settled in shares of our common stock and are subject to cliff vesting three years from the date of the original PU grant. As detailed above, PUs granted are subject to the Retirement Criteria. PUs granted to recipients who meet the Retirement Criteria will continue to vest and be delivered in accordance with the original vesting schedule of the applicable PU award and remain subject to the same performance conditions. As a result, PUs are generally expensed over the three-year performance period.

All PUs accrue dividend equivalents associated with the underlying stock as we declare dividends. Dividends will generally be paid to holders of PUs in cash upon the settlement date of the associated PU and will be forfeited if the PU does not vest.

During the years ended December 31, 2021, 2020 and 2019, we issued 488,953, 425,777 and 380,856 PUs, respectively. We forecast the likelihood of achieving the predefined targets for our PUs in order to calculate the expected PUs to be earned. We record a compensation charge based on either the forecasted PUs to be earned (during the performance period) or the actual PUs earned (at the three-year anniversary of the grant date) over the vesting period for each of the awards. The fair value of PUs based on our performance against predefined targets is the excess of the market price of our common stock at the date of grant over the purchase price (which is typically zero). For PUs earned based on a market condition, we utilize a Monte Carlo simulation to fair value these awards at the date of grant, and such fair value is expensed over the three-year performance period.

The fair value of earned PUs that vested during the years ended December 31, 2021, 2020 and 2019, is as follows:

			YEAR ENDED DECEMBER 31,
			2021						2020						2019
Fair value of earned PUs that vested			$	29,701					$	11,812					$	6,503

A summary of PU activity for the year ended December 31, 2021 is as follows:

			ORIGINAL PU AWARDS						PU ADJUSTMENT**(1)**						TOTAL PU AWARDS						WEIGHTED-AVERAGE GRANT-DATE FAIR VALUE
Non-vested at December 31, 2020			1,073,209						(319,508)						753,701						$	36.98
Granted			488,953						—						488,953						54.61
Vested			(630,151)						—						(630,151)						47.13
Forfeited/Performance or Market Conditions Not Achieved			(58,776)						(221,936)						(280,712)						35.84
Non-vested at December 31, 2021			873,235						(541,444)						331,791						$	44.65

(1)Represents an increase or decrease in the number of original PUs awarded based on either the final performance criteria or market condition achievement at the end of the performance period of such PUs or a change in estimated awards based on the forecasted performance against the predefined targets.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

EMPLOYEE STOCK PURCHASE PLAN

We offer an ESPP in which participation is available to substantially all United States and Canadian employees who meet certain service eligibility requirements. The ESPP provides for the purchase of our common stock by eligible employees through successive offering periods. We have historically had two six-month offering periods per year, the first of which generally runs from June 1 through November 30 and the second of which generally runs from December 1 through May 31. During each offering period, participating employees accumulate after-tax payroll contributions, up to a maximum of 15% of their compensation, to pay the purchase price at the end of the offering. Participating employees may withdraw from an offering before the purchase date and obtain a refund of the amounts withheld as payroll deductions. At the end of the offering period, outstanding options under the ESPP are exercised, and each employee’s accumulated contributions are used to purchase our common stock. The price for shares purchased under the ESPP is 95% of the fair market price at the end of the offering period, without a look-back feature. As a result, we do not recognize compensation expense for the ESPP shares purchased. In May 2021, our stockholders approved an amendment to the ESPP to increase the number of shares of Common Stock authorized for issuance thereunder by 1,000,000 from 1,000,000 to 2,000,000. For the years ended December 31, 2021, 2020 and 2019, there were 112,297, 159,853 and 129,505 shares, respectively, purchased under the ESPP. As of December 31, 2021, we have 1,103,990 shares available under the ESPP.

---

As of December 31, 2021, unrecognized compensation cost related to the unvested portion of our Employee Stock-Based Awards was $42,559 and is expected to be recognized over a weighted-average period of 1.9 years.

We issue shares of our common stock for the exercises of stock options, and the vesting of RSUs, PUs and shares of our common stock under our ESPP from unissued reserved shares.

T. ACQUISITION AND INTEGRATION COSTS

Acquisition and integration costs represent operating expenditures directly associated with the closing and integration activities of our business acquisitions that have closed, or are highly probable of closing, and include (i) advisory, legal and professional fees to complete business acquisitions and (ii) costs to integrate acquired businesses into our existing operations, including move, severance, facility upgrade and system integration costs (collectively, "Acquisition and Integration Costs"). Acquisition and Integration Costs do not include costs associated with the formation of joint ventures or costs associated with the acquisition of customer relationships. Acquisition and integration costs for the year ended December 31, 2021, 2020 and 2019 were $12,764, $0 and $13,293, respectively.

U. OTHER (INCOME) EXPENSE, NET

Consolidated other (income) expense, net for the years ended December 31, 2021, 2020 and 2019 consists of the following:

			YEAR ENDED DECEMBER 31,
			2021						2020						2019
Foreign currency transaction (gains) losses, net(1)			$	(15,753)					$	29,830					$	24,852
Debt extinguishment expense			—						68,300						—
Other, net(2)			(177,051)						45,415						9,046
Other (Income) Expense, Net			$	(192,804)					$	143,545					$	33,898

(1)The gain or loss on foreign currency transactions, calculated as the difference between the historical exchange rate and the exchange rate at the applicable measurement date, includes gains or losses primarily related to (i) borrowings in certain foreign currencies under our Revolving Credit Facility (as defined in Note 7), (ii) our previously outstanding 3% Euro Senior Notes due 2025 ("Euro Notes"), (iii) certain foreign currency denominated intercompany obligations of our foreign subsidiaries to us and between our foreign subsidiaries, which are not considered permanently invested and (iv) amounts that are paid or received on the net settlement amount from forward contracts (as more fully discussed in Note 6).

(2)Other, net for the year ended December 31, 2021 consists primarily of (a) a gain of approximately $179,000 associated with our IPM Divestment and (b) a gain of approximately $20,300 associated with the loss of control and related deconsolidation, as of May 18, 2021, of one of our wholly owned Netherlands subsidiaries, for which we had value-added tax liability exposure that was recorded in 2019, partially offset by (c) losses on our equity method investments. Other, net for the year ended December 31, 2020 consists primarily of (a) changes in the estimated value of our mandatorily redeemable noncontrolling interests and (b) losses on our equity method investments.

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DECEMBER 31, 2021

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

V. INCOME TAXES

Accounting for income taxes requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the tax and financial reporting bases of assets and liabilities and for loss and credit carryforwards. Valuation allowances are provided when recovery of deferred tax assets does not meet the more likely than not standard as defined in GAAP. We have elected to recognize interest and penalties associated with uncertain tax positions as a component of the Provision (benefit) for income taxes in the accompanying Consolidated Statements of Operations.

W. INCOME (LOSS) PER SHARE—BASIC AND DILUTED

Basic income (loss) per common share is calculated by dividing income (loss) by the weighted average number of common shares outstanding. The calculation of diluted income (loss) per share is consistent with that of basic income (loss) per share but gives effect to all potential common shares (that is, securities such as stock options, RSUs, PUs, warrants or convertible securities) that were outstanding during the period, unless the effect is antidilutive.

The calculation of basic and diluted income (loss) per share for the years ended December 31, 2021, 2020 and 2019 is as follows:

			YEAR ENDED DECEMBER 31,
			2021						2020						2019
Income (loss) from continuing operations			$	452,725					$	343,096					$	268,211
Less: Net income (loss) attributable to noncontrolling interests			2,506						403						938
Income (loss) from continuing operations (utilized in numerator of Earnings Per Share calculation)			450,219						342,693						267,273
Income (loss) from discontinued operations, net of tax			—						—						104
Net income (loss) attributable to Iron Mountain Incorporated			$	450,219					$	342,693					$	267,377
Weighted-average shares—basic			289,457,000						288,183,000						286,971,000
Effect of dilutive potential stock options			645,886						24,903						145,509
Effect of dilutive potential RSUs and PUs			872,204						435,287						570,435
Weighted-average shares—diluted			290,975,090						288,643,190						287,686,944
Earnings (losses) per share—basic:
Income (loss) from continuing operations			$	1.56					$	1.19					$	0.93
(Loss) income from discontinued operations, net of tax			—						—						—
Net income (loss) attributable to Iron Mountain Incorporated(1)			$	1.56					$	1.19					$	0.93
Earnings (losses) per share—diluted:
Income (loss) from continuing operations			$	1.55					$	1.19					$	0.93
(Loss) income from discontinued operations, net of tax			—						—						—
Net income (loss) attributable to Iron Mountain Incorporated(1)			$	1.55					$	1.19					$	0.93
Antidilutive stock options, RSUs and PUs, excluded from the calculation			1,447,722						5,663,981						4,475,745

(1)Columns may not foot due to rounding.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

X. NEW ACCOUNTING PRONOUNCEMENTS

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS

In December 2019, the Financial Accounting Standards Board (the "FASB") issued ASU No. 2019-12, Income Taxes (Topic 740) (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions for recognizing deferred taxes for investments, performing intra-period allocation and calculating income taxes in interim periods. ASU 2019-12 also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. We adopted ASU 2019-12 on January 1, 2021. ASU 2019-12 did not have a material impact on our consolidated financial statements.

OTHER AS YET ADOPTED ACCOUNTING PRONOUNCEMENTS

In December 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”). ASU 2021-08 requires that an entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASU 2014-09 and for the related revenue contracts in accordance with ASU 2014-09 as if it had originated the contracts. ASU 2021-08 will be effective for us on January 1, 2023, with early adoption permitted. We are currently evaluating the impact ASU 2021-08 will have on our consolidated financial statements.

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions for applying U.S.GAAP to contracts, hedging relationships, and other transactions, for a limited period of time, to ease the potential burden of recognizing the effects of reference rate reform on financial reporting. The amendments in ASU 2020-04 apply to contracts, hedging relationships and other transactions that reference the London Inter-Bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to the global transition away from LIBOR and certain other interbank offered rates. An entity may elect to apply the amendments provided by ASU 2020-04 beginning March 12, 2020 through December 31, 2022. We are currently evaluating these amendments as they relate to our contracts, hedging relationships and other transactions that reference LIBOR, as well as the impact of ASU 2020-04 on our consolidated financial statements but do not expect the impact to be material.

3. ACQUISITIONS

We account for acquisitions using the acquisition method of accounting, and, accordingly, the assets and liabilities acquired are recorded at their estimated fair values and the results of operations for each acquisition have been included in our consolidated results from their respective acquisition dates.

A. ACQUISITIONS COMPLETED DURING THE YEAR ENDED DECEMBER 31, 2021

On September 15, 2021, in order to further expand our records management operations in the Middle East and North Africa, we acquired Information Fort, LLC, a records and information management provider, for approximately $90,300.

On September 23, 2021, in order to further enhance our data center operations in Germany, we completed the acquisition of assets of a Frankfurt data center for approximately 77,900 Euros (or approximately $91,300, based upon the exchange rate between the Euro and the United States dollar on the closing date of this acquisition).

In addition to the transactions noted above, during the year ended December 31, 2021, in order to enhance our existing operations in the United Kingdom and Indonesia and to expand our operations into Morocco, we completed the acquisition of two records management companies and one art storage company for total cash consideration of approximately $45,100.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

3. ACQUISITIONS (CONTINUED)

B. ACQUISITIONS COMPLETED DURING THE YEAR ENDED DECEMBER 31, 2020

Prior to January 9, 2020, we owned a 25% equity interest in OSG Records Management (Europe) Limited ("OSG"). On January 9, 2020, we acquired the remaining 75% equity interest in OSG for cash consideration of approximately $95,500 (the "OSG Acquisition"). The OSG Acquisition enabled us to extend our Global RIM Business in Russia, Ukraine, Kazakhstan, Belarus, and Armenia. The results of OSG are fully consolidated within our consolidated financial statements from the closing date of the OSG Acquisition. In connection with the OSG Acquisition, our previously held 25% equity investment in OSG was remeasured to fair value at the closing date of the OSG Acquisition; as a result, we recorded a gain of approximately $10,000 during the first quarter of 2020, which is included as a component of Other (income) expense, net on our Consolidated Statements of Operations. The fair value of the 25% equity investment in OSG was determined based on the purchase price of the OSG Acquisition.

On February 17, 2020, in order to enhance our existing operations in the United Arab Emirates, we acquired Glenbeigh Records Management DWC-LLC, a storage and records management company, for total cash consideration of approximately $29,100.

C. ACQUISITIONS COMPLETED DURING THE YEAR ENDED DECEMBER 31, 2019

During the year ended December 31, 2019, in order to enhance our existing operations in the United States, Colombia, Germany, Hong Kong, Latvia, Slovakia, Switzerland, Thailand and the United Kingdom and to expand our operations into Bulgaria, we completed the acquisition of 10 storage and records management companies and one art storage company for total cash consideration of approximately $51,000. The individual purchase prices of these acquisitions ranged from approximately $700 to $12,500.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

3. ACQUISITIONS (CONTINUED)

D. PURCHASE PRICE ALLOCATION

A summary of the cumulative consideration paid and the allocation of the purchase price paid for all of our acquisitions (including asset acquisitions) in each respective year is as follows:

			2021						2020						2019
Cash Paid (gross of cash acquired)(1)			$	224,192					$	124,614					$	53,230
Fair Value of Noncontrolling Interests			3,878						—						—
Purchase Price Holdbacks and Other			2,534						—						4,135
Fair Value of Investments Applied to Acquisitions			—						27,276						—
Total Consideration			230,604						151,890						57,365
Fair Value of Identifiable Assets Acquired:
Cash			20,194						6,545						2,260
Accounts Receivable, Prepaid Expenses and Other Assets			26,911						16,559						3,102
Property, Plant and Equipment			150,095						52,021						5,396
Customer Relationship Intangible Assets(2)			35,181						79,065						22,071
Operating Lease Right-of-Use Assets			40,848						100,040						16,956
Data Center In-Place Leases(3)			4,994						—						—
Data Center Tenant Relationships(4)			4,682						—						—
Debt Assumed			(9,026)						(27,363)						—
Accounts Payable, Accrued Expenses and Other Liabilities			(22,733)						(19,564)						(3,233)
Operating Lease Liabilities			(40,848)						(100,040)						(16,956)
Deferred Income Taxes			(7,221)						(9,631)						(1,813)
Data Center Below-Market Leases(5)			(20)						—						—
Total Fair Value of Identifiable Net Assets Acquired			203,057						97,632						27,783
Goodwill Initially Recorded			$	27,547					$	54,258					$	29,582

(1)Cash paid for acquisitions, net of cash acquired in our Consolidated Statement of Cash Flows includes contingent and other payments of $0, $512 and $7,267 for the years ended December 31, 2021, 2020 and 2019, respectively, related to acquisitions made in the years prior to 2021, 2020 and 2019, respectively.

(2)The weighted average lives of Customer Relationship Intangible Assets associated with acquisitions in 2021, 2020 and 2019 was 11 years, 14 years and 16 years, respectively.

(3)The weighted average lives of Data Center In-Place Leases associated with acquisitions in 2021 was five years.

(4)The weighted average lives of Data Center Tenant Relationships associated with acquisitions in 2021 was five years.

(5)The weighted average lives of Data Center Below-Market Leases associated with acquisitions in 2021 was four years.

Allocations of the purchase price for acquisitions are based on estimates of the fair value of the net assets acquired and are subject to adjustment upon the finalization of the purchase price allocations. The accounting for business combinations requires estimates and judgments regarding expectations for future cash flows of the acquired business, and the allocations of those cash flows to identifiable tangible and intangible assets, in determining the assets acquired and liabilities assumed. The fair values assigned to tangible and intangible assets acquired and liabilities assumed, including contingent consideration, are based on management’s best estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. The estimates and assumptions underlying the initial valuations are subject to the collection of information necessary to complete the valuations within the measurement periods, which are up to one year from the respective acquisition dates. The preliminary purchase price allocations that are not finalized as of December 31, 2021 relate to the final assessment of the fair values of intangible assets (primarily customer relationship intangible assets) and property, plant and equipment associated with the acquisitions we closed in 2021.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

3. ACQUISITIONS (CONTINUED)

As the valuation of certain assets and liabilities for purposes of purchase price allocations are preliminary in nature, they are subject to adjustment as additional information is obtained about the facts and circumstances regarding these assets and liabilities that existed at the acquisition date. Any adjustments to our estimates of purchase price allocation will be made in the periods in which the adjustments are determined and the cumulative effect of such adjustments will be calculated as if the adjustments had been completed as of the acquisition dates. Adjustments recorded during the fourth quarter of 2021 and year ended December 31, 2021 were not material to our balance sheet or results from operations.

4. DIVESTMENTS

INTELLECTUAL PROPERTY MANAGEMENT BUSINESS

On June 7, 2021, we sold our Intellectual Property Management ("IPM") business, also known as our technology escrow services business, which we predominantly operated in the United States, for total gross consideration of approximately $215,400 (the “IPM Divestment”). As a result of the IPM Divestment, we recorded a gain on sale of approximately $179,000 to Other (income) expense, net, during the year ended December 31, 2021, the substantial majority of which was recorded during the second quarter of 2021, representing the excess of the fair value of the consideration received over the sum of the carrying value of the IPM business.

We have concluded that the IPM Divestment does not meet the criteria to be reported as discontinued operations in our consolidated financial statements, as our decision to divest this business does not represent a strategic shift that will have a major effect on our operations and financial results. Accordingly, the revenues and expenses associated with this business are presented as a component of operating income (loss) in our Consolidated Statements of Operations for the year ended December 31, 2021 through the closing date of the IPM Divestment and for the years ended December 31, 2020 and 2019 and the cash flows associated with this business is presented as a component of cash flows from operations in our Consolidated Statements of Cash Flows for the year ended December 31, 2021 through the closing date of the IPM Divestment and for the years ended December 31, 2020 and 2019.

IRON MOUNTAIN CONSUMER STORAGE

In March 2019, we contributed our customer contracts and certain intellectual property and other assets used by us to operate our consumer storage business in the United States and Canada (the “IM Consumer Storage Assets”) and approximately $20,000 in cash (gross of certain transaction expenses) (the “Cash Contribution”) to a strategic partnership (the “MakeSpace JV”) established by us and MakeSpace Labs, Inc. (“MakeSpace”) pursuant to a transaction which closed on March 19, 2019 (the "Consumer Storage Transaction"). Upon the closing of the Consumer Storage Transaction, the MakeSpace JV owned (i) the IM Consumer Storage Assets, (ii) the Cash Contribution and (iii) the customer contracts, intellectual property and certain other assets used by MakeSpace to operate its consumer storage business in the United States. As part of the Consumer Storage Transaction, we received an initial equity interest of approximately 34% in the MakeSpace JV (the "MakeSpace Investment"). In connection with the Consumer Storage Transaction and the investment in the MakeSpace JV, we also entered into a storage and service agreement with the MakeSpace JV to provide certain storage and related services to the MakeSpace JV (see Note 12).

We have concluded that the divestment of the IM Consumer Storage Assets in the Consumer Storage Transaction does not meet the criteria to be reported as discontinued operations in our consolidated financial statements, as our decision to divest this business does not represent a strategic shift that will have a major effect on our operations and financial results. Accordingly, the revenues and expenses associated with this business are presented as a component of Income (loss) from continuing operations in our Consolidated Statements of Operations for the year ended December 31, 2019 through the closing date of the Consumer Storage Transaction and the cash flows associated with this business are presented as a component of cash flows from continuing operations in our Consolidated Statements of Cash Flows for the year ended December 31, 2019 through the closing date of the Consumer Storage Transaction.

As a result of the Consumer Storage Transaction, we recorded a gain on sale of approximately $4,200 to Other (income) expense, net, in the first quarter of 2019, representing the excess of the fair value of the consideration received over the sum of (i) the carrying value of our consumer storage operations and (ii) the Cash Contribution.

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DECEMBER 31, 2021

(In thousands, except share and per share data)

5. INVESTMENTS

WEB WERKS JOINT VENTURE

In April 2021, we closed on an agreement to form a joint venture (the "Web Werks JV") with the shareholders of Web Werks India Private Limited ("Web Werks"), a colocation data center provider in India. In connection with the formation of the Web Werks JV, we made an initial investment of approximately 3,750,000 Indian rupees (or approximately $50,100, based upon the exchange rate between the United States dollar and Indian rupee as of the closing date of the initial investment) in exchange for a noncontrolling interest in the form of convertible preference shares in the Web Werks JV (the “Initial Web Werks JV Investment”). These shares are convertible into a to-be-determined amount of common shares based upon the achievement of EBITDA targets for the Web Werks JV's fiscal year ending March 31, 2022.

Under the terms of the Web Werks JV shareholder agreement, we are required to make additional investments over a period ending May 2023 totaling approximately 7,500,000 Indian rupees (or approximately $100,000, based upon the exchange rate as of December 31, 2021 between the United States dollar and Indian rupee).

FRANKFURT JOINT VENTURE

In October 2020, we formed a joint venture (the “Frankfurt JV”) with AGC Equity Partners (“AGC”) to design and develop a 280,000 square foot, 27 megawatt, hyperscale data center currently under development in Frankfurt, Germany (the “Frankfurt JV Transaction”). AGC acquired an 80% equity interest in the Frankfurt JV, while we retained a 20% equity interest (the "Frankfurt JV Investment"). The total cash consideration for the 80% equity interest sold to AGC was approximately $105,000. We received approximately $93,300 (gross of certain transaction expenses) upon the closing of the Frankfurt JV, and we are entitled to receive an additional approximately $11,700 upon the completion of development of the data center, which we expect to occur in the third quarter of 2022. In connection with the Frankfurt JV Transaction, we also entered into agreements whereby we will earn various fees, including property management and construction and development fees, for services we are providing to the Frankfurt JV.

As a result of the Frankfurt JV Transaction, we recognized a gain during the year ended December 31, 2020 of approximately $24,100, representing the excess of the fair value of the consideration received over the carrying value of the assets, which consisted primarily of land and land development assets which were previously included within our Global Data Center Business segment.

MAKESPACE JOINT VENTURE

In March 2019, we formed the MakeSpace JV. In the second quarter of 2020, we committed to participate in a round of equity funding for the MakeSpace JV whereby we contributed approximately $36,000 of the $45,000 being raised in installments between May 2020 through October 2021.

JOINT VENTURE SUMMARY

The joint ventures, referred to above, are accounted for as equity method investments and are presented as a component of Other within Other assets, net in our Consolidated Balance Sheets. The carrying values and equity interests in our joint ventures at December 31, 2021 and 2020 are as follows:

						DECEMBER 31, 2021												DECEMBER 31, 2020
						CARRYING VALUE						EQUITY INTEREST						CARRYING VALUE						EQUITY INTEREST
Web Werks JV						$	51,140					38.50		%				$	—					—		%
Frankfurt JV						26,167						20.00		%				26,500						20.00		%
MakeSpace JV						30,154						49.99		%				16,924						38.86		%

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

6. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Derivative instruments we are party to include: (i) interest rate swap agreements (which are designated as cash flow hedges), (ii) cross-currency swap agreements (which are designated as net investment hedges) and (iii) foreign exchange currency forward contracts (which are not designated as hedges).

INTEREST RATE SWAP AGREEMENTS DESIGNATED AS CASH FLOW HEDGES

In March 2018, we entered into interest rate swap agreements to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness. As of December 31, 2021 and 2020, we had $350,000 in notional value of interest rate swap agreements outstanding, which expire in March 2022. Under the interest rate swap agreements, we receive variable rate interest payments associated with the notional amount of each interest rate swap, based upon one-month LIBOR, in exchange for the payment of fixed interest rates as specified in the interest rate swap agreements.

In July 2019, we entered into forward-starting interest rate swap agreements to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness once our current interest rate swap agreements expire in March 2022. The forward-starting interest rate swap agreements have $350,000 in notional value, commence in March 2022 and expire in March 2024. Under the swap agreements, we will receive variable rate interest payments based upon one-month LIBOR, in exchange for the payment of fixed interest rates as specified in the interest rate swap agreements.

We have designated these interest rate swap agreements, including the forward-starting interest rate swap agreements, as cash flow hedges. Unrealized gains are recognized as assets, while unrealized losses are recognized as liabilities.

CROSS-CURRENCY SWAP AGREEMENTS DESIGNATED AS A HEDGE OF NET INVESTMENT

In August 2019, we entered into cross-currency swap agreements to hedge the variability of exchange rate impacts between the United States dollar and the Euro. Under the terms of the cross-currency swap agreements we notionally exchanged approximately $110,000 at an interest rate of 6.0% for approximately 99,055 Euros at a weighted average interest rate of approximately 3.65%. These cross-currency swap agreements expire in August 2023 (“August 2023 Cross Currency Swap Agreements”).

In September 2020, we entered into cross-currency swap agreements to hedge the variability of exchange rates impacts between the United States dollar and the Euro. Under the terms of the cross-currency swap agreements, we notionally exchanged approximately $359,200 at an interest rate of 4.5% for approximately 300,000 Euros at a weighted average interest rate of approximately 3.4%. These cross-currency swap agreements expire in February 2026 (“February 2026 Cross Currency Swap Agreements”).

We have designated these cross-currency swap agreements as hedge of net investments against certain of our Euro denominated subsidiaries and they require an exchange of the notional amounts at maturity. These cross-currency swap agreements are marked to market at each reporting period, representing the fair values of the cross-currency swap agreements, and any changes in fair value are recognized as a component of Accumulated other comprehensive items, net. Unrealized gains are recognized as assets while unrealized losses are recognized as liabilities.

FOREIGN EXCHANGE CURRENCY FORWARD CONTRACTS NOT DESIGNATED AS HEDGING INSTRUMENTS

On occasion, we enter into forward contracts to hedge our exposures associated with certain foreign currencies. We have not designated any of these forward contracts as hedges. Our policy is to record the fair value of each derivative instrument on a gross basis. As of December 31, 2021 and 2020, we had no outstanding forward contracts.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

6. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (CONTINUED)

(Liabilities) assets recognized in our Consolidated Balance Sheets as of December 31, 2021 and 2020 by derivative instrument are as follows:

DERIVATIVE INSTRUMENT**(1)**						DECEMBER 31, 2021						DECEMBER 31, 2020
Cash Flow Hedges*(2)*
Interest Rate Swap Agreements						$	(7,680)					$	(21,062)
Net Investment Hedges*(3)*
August 2023 Cross Currency Swap Agreements						(664)						(8,229)
February 2026 Cross Currency Swap Agreements						11,021						(20,412)

(1)Our derivative assets are included as a component of Other within Other assets, net and our derivative liabilities are included as a component of (i) Accrued expenses and other current liabilities or (ii) Other long-term liabilities in our Consolidated Balance Sheets. As of December 31, 2021, $11,021 is included within Other assets, $2,082 is included within Accrued expense and other current liabilities and $6,262 is included within Other long-term liabilities. As of December 31, 2020, $49,703 is included within Other long-term liabilities.

(2)As of December 31, 2021, cumulative net losses of $7,680 are recorded within Accumulated other comprehensive items, net associated with these interest rate swap agreements.

(3)As of December 31, 2021, cumulative net gains of $10,357 are recorded within Accumulated other comprehensive items, net associated with these cross currency swap agreements.

Gains (losses) recognized during the years ending December 31, 2021, 2020 and 2019, by derivative instrument, are as follows:

						YEAR ENDED DECEMBER 31,
DERIVATIVE INSTRUMENT						2021						2020						2019
Derivative Instruments Designated as Hedging Instruments*(1)*
Cash Flow Hedges
Interest Rate Swap Agreements						$	13,382					$	(12,288)					$	(7,801)
Net Investment Hedges
August 2023 Cross Currency Swap Agreements						7,565						(7,247)						(982)
February 2026 Cross Currency Swap Agreements						31,433						(20,412)						—
Derivative Instruments Not Designated as Hedging Instruments*(2)*
Foreign Exchange Currency Forward Contracts						—						—						(737)

(1)These amounts are recognized as unrealized gains (losses), a component of Accumulated other comprehensive items, net.

(2)These amounts are recognized as foreign exchange gains (losses), a component of Other (income) expense, net. Net cash receipts (payments) included in cash from operating activities related to settlements associated with foreign currency forward contracts for the years ended December 31, 2021, 2020 and 2019 are $0, $0 and $(737), respectively.

EURO NOTES DESIGNATED AS A HEDGE OF NET INVESTMENT

Prior to their redemption in August 2020, we designated a portion of our Euro Notes as a hedge of net investment of certain of our Euro denominated subsidiaries. From January 1, 2020 through the date of redemption and for the year ended December 31, 2019 we designated, on average, 300,000 and 284,986 Euros, respectively, of our Euro Notes as a hedge of net investment of certain of our Euro denominated subsidiaries. As a result, we recorded the following foreign exchange gains (losses) related to the change in fair value of such debt due to currency translation adjustments as a component of Accumulated other comprehensive items, net:

			YEAR ENDED DECEMBER 31,
			2021						2020						2019
Foreign exchange gains (losses) associated with net investment hedge			$	—					$	(17,005)					$	(6,003)

As of December 31, 2021, cumulative net gains of $3,256, net of tax, are recorded in Accumulated other comprehensive items, net associated with this net investment hedge.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

7. DEBT

Long-term debt is as follows:

						DECEMBER 31, 2021																											DECEMBER 31, 2020
						DEBT (INCLUSIVE OF DISCOUNT)						UNAMORTIZED DEFERRED FINANCING COSTS						CARRYING AMOUNT						FAIR VALUE									DEBT (INCLUSIVE OF DISCOUNT)						UNAMORTIZED DEFERRED FINANCING COSTS						CARRYING AMOUNT						FAIR VALUE
Revolving Credit Facility(1)						$	—					$	(5,174)					$	(5,174)					$	—								$	—					$	(8,620)					$	(8,620)					$	—
Term Loan A(1)						203,125						—						203,125						203,125									215,625						—						215,625						215,625
Term Loan B(1)(2)						672,847						(4,995)						667,852						675,500									679,621						(6,244)						673,377						680,750
Australian Dollar Term Loan (the “AUD Term Loan”)(3)(4)						223,182						(656)						222,526						223,530									243,152						(1,624)						241,528						244,014
UK Bilateral Revolving Credit Facility(4)						189,168						(709)						188,459						189,168									191,101						(1,307)						189,794						191,101
37/8% GBP Senior Notes due 2025 (the “GBP Notes “)(5)(7)(8)						540,481						(3,912)						536,569						542,508									546,003						(4,983)						541,020						553,101
47/8% Senior Notes due 2027 (the “47/8% Notes due 2027”)(5)(6)(7)						1,000,000						(8,176)						991,824						1,030,000									1,000,000						(9,598)						990,402						1,046,250
51/4% Senior Notes due 2028 (the “51/4% Notes due 2028”)(5)(6)(7)						825,000						(7,380)						817,620						862,125									825,000						(8,561)						816,439						868,313
5% Senior Notes due 2028 (the “5% Notes due 2028”)(5)(6)(7)						500,000						(4,763)						495,237						513,750									500,000						(5,486)						494,514						523,125
47/8% Senior Notes due 2029 (the “47/8% Notes due 2029”)(5)(6)(7)						1,000,000						(11,211)						988,789						1,022,500									1,000,000						(12,658)						987,342						1,050,000
51/4% Senior Notes due 2030 (the “51/4% Notes due 2030”)(5)(6)(7)						1,300,000						(12,911)						1,287,089						1,355,250									1,300,000						(14,416)						1,285,584						1,400,750
41/2% Senior Notes due 2031 (the “41/2% Notes”)(5)(6)(7)						1,100,000						(11,404)						1,088,596						1,094,500									1,100,000						(12,648)						1,087,352						1,138,500
5% Senior Notes due 2032 (the “5% Notes due 2032”)(5)(7)(9)						750,000						(13,782)						736,218						767,813									—						—						—						—
55/8% Senior Notes due 2032 (the “55/8% Notes”)(5)(6)(7)						600,000						(6,147)						593,853						637,500									600,000						(6,727)						593,273						660,000
Real Estate Mortgages, Financing Lease Liabilities and Other(10)						460,648						(840)						459,808						460,648									511,922						(1,086)						510,836						511,922
Accounts Receivable Securitization Program(11)						—						(450)						(450)						—									85,000						(152)						84,848						85,000
Total Long-term Debt						9,364,451						(92,510)						9,271,941															8,797,424						(94,110)						8,703,314
Less Current Portion						(310,084)						656						(309,428)															(193,759)						—						(193,759)
Long-term Debt, Net of Current Portion						$	9,054,367					$	(91,854)					$	8,962,513														$	8,603,665					$	(94,110)					$	8,509,555

**(1)**The capital stock or other equity interests of most of our United States subsidiaries, and up to 66% of the capital stock or other equity interests of most of our first-tier foreign subsidiaries, are pledged to secure these debt instruments, together with all intercompany obligations (including promissory notes) of subsidiaries owed to us or to one of our United States subsidiary guarantors. In addition, Iron Mountain Canada Operations ULC (“Canada Company”) has pledged 66% of the capital stock of its subsidiaries, and all intercompany obligations (including promissory notes) owed to or held by it, to secure the Canadian dollar subfacility under the Revolving Credit Facility. The fair value (Level 3 of fair value hierarchy described at Note 2.o.) of these debt instruments approximates the carrying value (as borrowings under these debt instruments are based on current variable market interest rates (plus a margin that is subject to change based on our consolidated leverage ratio)), as of December 31, 2021 and 2020.

(2)The amount of debt for the Term Loan B (as defined below) reflects an unamortized original issue discount of $903 and $1,129 as of December 31, 2021 and 2020, respectively.

(3)The amount of debt for the AUD Term Loan reflects an unamortized original issue discount of $348 and $862 as of December 31, 2021 and 2020, respectively.

(4)The fair value (Level 3 of fair value hierarchy described at Note 2.o.) of this debt instrument approximates the carrying value as borrowings under this debt instrument are based on a current variable market interest rate.

(5)The fair values (Level 1 of fair value hierarchy described at Note 2.o.) of these debt instruments are based on quoted market prices for these notes on December 31, 2021 and 2020, respectively.

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(In thousands, except share and per share data)

7. DEBT (CONTINUED)

(6)Collectively, the “Parent Notes". IMI is the direct obligor on the Parent Notes, which are fully and unconditionally guaranteed, on a senior basis, by IMI’s direct and indirect 100% owned United States subsidiaries that represent the substantial majority of our United States operations (the “Guarantors”). These guarantees are joint and several obligations of the Guarantors. The remainder of our subsidiaries do not guarantee the Parent Notes.

(7)Collectively, the “Unregistered Notes". The Unregistered Notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or under the securities laws of any other jurisdiction. Unless they are registered, the Unregistered Notes may be offered only in transactions that are exempt from registration under the Securities Act or the securities laws of any other jurisdiction.

(8)Iron Mountain (UK) PLC (“IM UK”) is the direct obligor on the GBP Notes, which are fully and unconditionally guaranteed, on a senior basis, by IMI and the Guarantors. These guarantees are joint and several obligations of IMI and the Guarantors.

(9)Iron Mountain Information Management Services, Inc. (“IMIM Services”) is the direct obligor on the 5% Notes due 2032, which are fully and unconditionally guaranteed, on a senior basis, by IMI and the other Guarantors. These guarantees are joint and several obligations of IMI and such Guarantors.

(10) We believe the fair value (Level 3 of fair value hierarchy described at Note 2.o.) of this debt approximates its carrying value. This debt includes the following:

			DECEMBER 31, 2021						DECEMBER 31, 2020
Real estate mortgages(i)			$	58,933					$	71,673
Financing lease liabilities(ii)			356,729						366,311
Other notes and other obligations(iii)			44,986						73,938
			$	460,648					$	511,922

(i)Bear interest at approximately 3.6% and 3.3% at December 31, 2021 and 2020, respectively, and includes $50,000 outstanding under our Mortgage Securitization Program at both December 31, 2021 and 2020.

(ii)Bear a weighted average interest rate of 5.9% at both December 31, 2021 and 2020.

(iii)These notes and other obligations, which were assumed by us as a result of certain acquisitions bear a weighted average interest rate of 10.7% at both December 31, 2021 and 2020.

(11) The Accounts Receivable Securitization Special Purpose Subsidiaries are the obligors under this program. We believe the fair value (Level 3 of fair value hierarchy described at Note 2.o.) of this debt approximates its carrying value.

A. CREDIT AGREEMENT

Our credit agreement (the "Credit Agreement") consists of a revolving credit facility (the “Revolving Credit Facility”) and a term loan (the “Term Loan A”). The Revolving Credit Facility enables IMI and certain of its United States and foreign subsidiaries to borrow in United States dollars and (subject to sublimits) a variety of other currencies (including Canadian dollars, British pounds sterling and Euros, among other currencies) in an aggregate outstanding amount not to exceed $1,750,000. Under the Credit Agreement, we have the option to request additional commitments of up to $1,260,000, in the form of term loans or through increased commitments under the Revolving Credit Facility, subject to the conditions specified in the Credit Agreement. The Credit Agreement is scheduled to mature on June 3, 2023, at which point all obligations become due. The original principal amount of the Term Loan A was $250,000 and is to be paid in quarterly installments in an amount equal to $3,125 per quarter, with the remaining balance due on June 3, 2023. IMI and the Guarantors guarantee all obligations under the Credit Agreement. The interest rate on borrowings under the Credit Agreement varies depending on our choice of interest rate and currency options, plus an applicable margin, which varies based on our consolidated leverage ratio. Additionally, the Credit Agreement requires the payment of a commitment fee on the unused portion of the Revolving Credit Facility, which fee ranges from between 0.25% to 0.4% based on our consolidated leverage ratio and fees associated with outstanding letters of credit. As of December 31, 2021, we had no outstanding borrowings under the Revolving Credit Facility and $203,125 aggregate outstanding principal amount under the Term Loan A. At December 31, 2021, we had various outstanding letters of credit totaling $3,039 under the Revolving Credit Facility. The remaining amount available for borrowing under the Revolving Credit Facility as of December 31, 2021, which is based on IMI’s leverage ratio, the last 12 months' earnings before interest, taxes, depreciation and amortization and rent expense (“EBITDAR”), other adjustments as defined in the Credit Agreement and current external debt, was $1,746,961 (which amount represents the maximum availability as of such date). Available borrowings under the Revolving Credit Facility are subject to compliance with our indenture covenants as discussed below. The average interest rate in effect under the Revolving Credit Facility and Term Loan A was 1.9% as of both December 31, 2021 and 2020.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

7. DEBT (CONTINUED)

IMI’s wholly owned subsidiary, Iron Mountain Information Management, LLC (“IMIM”), has an incremental term loan B with a principal amount of $700,000 (the “Term Loan B”). The Term Loan B, which matures on January 2, 2026, was issued at 99.75% of par. The Term Loan B holders benefit from the same security and guarantees as other borrowings under the Credit Agreement. The Term Loan B holders also benefit from the same affirmative and negative covenants as other borrowings under the Credit Agreement; however, the Term Loan B holders are not generally entitled to the benefits of the financial covenants under the Credit Agreement.

Principal payments on the Term Loan B are to be paid in quarterly installments of $1,750 per quarter during the period June 30, 2018 through December 31, 2025, with the balance due on January 2, 2026. The Term Loan B may be prepaid without penalty at any time. The Term Loan B bears interest at a rate of LIBOR plus 1.75%. As of December 31, 2021, we had $673,750 aggregate outstanding principal amount under the Term Loan B. The interest rate in effect under Term Loan B as of December 31, 2021 and 2020 was 3.1% and 1.9%, respectively.

REVOLVING CREDIT FACILITY $1,750,000									TERM LOAN A $250,000									TERM LOAN B $700,000
Outstanding borrowings $0									Aggregate outstanding principal amount $203,125									Aggregate outstanding principal amount $673,750
N/A Interest rate									1.9% Interest rate									3.1% Interest rate
As of December 31, 2021									As of December 31, 2021									As of December 31, 2021

B. NOTES ISSUED UNDER INDENTURES

Each series of notes shown below (i) is effectively subordinated to all of our secured indebtedness, including under the Credit Agreement, to the extent of the value of the collateral securing such indebtedness, (ii) ranks pari passu in right of payment with each other and with debt outstanding under the Credit Agreement, the senior notes shown below and other “senior debt” we incur from time to time, and (iii) is structurally subordinated to all liabilities of our subsidiaries that do not guarantee such series of notes.

The key terms of our indentures are as follows:

SENIOR NOTES						AGGREGATE PRINCIPAL AMOUNT						DIRECT OBLIGOR						MATURITY DATE						CONTRACTUAL INTEREST RATE						INTEREST PAYMENTS DUE						PAR CALL DATE**(1)**
GBP Notes						£	400,000					IM UK						November 15, 2025						37/8%						May 15 and November 15						November 15, 2022
47/8% Notes due 2027						$	1,000,000					IMI						September 15, 2027						47/8%						March 15 and September 15						September 15, 2025
51/4% Notes due 2028						$	825,000					IMI						March 15, 2028						51/4%						March 15 and September 15						March 15, 2025
5% Notes due 2028						$	500,000					IMI						July 15, 2028						5%						January 15 and July 15						July 15, 2025
47/8% Notes due 2029						$	1,000,000					IMI						September 15, 2029						47/8%						March 15 and September 15						September 15, 2027
51/4% Notes due 2030						$	1,300,000					IMI						July 15, 2030						51/4%						January 15 and July 15						July 15, 2028
41/2% Notes						$	1,100,000					IMI						February 15, 2031						41/2%						February 15 and August 15						February 15, 2029
5% Notes due 2032						$	750,000					IMIM Services						July 15, 2032						5%						May 15 and November 15						July 15, 2027
55/8% Notes						$	600,000					IMI						July 15, 2032						55/8%						January 15 and July 15						July 15, 2029

(1)We may redeem the notes at any time, at our option, in whole or in part. Prior to the par call date, we may redeem the notes at the redemption price or make-whole premium specified in the applicable indenture, together with accrued and unpaid interest to, but excluding, the redemption date. On or after the par call date, we may redeem the notes at a price equal to 100% of the principal amount being redeemed, together with accrued and unpaid interest to, but excluding, the redemption date.

Each of the indentures for the notes provides that we must repurchase, at the option of the holders, the notes at 101% of their principal amount, plus accrued and unpaid interest, upon the occurrence of a “Change of Control,” which is defined in each respective indenture. Except for required repurchases upon the occurrence of a Change of Control or in the event of certain asset sales, each as described in the respective indenture, we are not required to make sinking fund or redemption payments with respect to any of the notes.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

7. DEBT (CONTINUED)

DECEMBER 2021 OFFERING

On December 28, 2021, IMIM Services completed a private offering of:

SERIES OF NOTES			AGGREGATE PRINCIPAL AMOUNT
5% Notes due 2032			$	750,000

The 5% Notes due 2032 were issued at 100.000% of par. The total net proceeds of approximately $737,800 from the issuance of the 5% Notes due 2032, after deducting the initial purchasers’ commissions, were used to finance the purchase price of the ITRenew Transaction, which closed on January 25, 2022, and to pay related fees and expenses. At December 31, 2021, the net proceeds from the 5% Notes due 2032 were used to temporarily repay borrowings under our Revolving Credit Facility and Accounts Receivable Securitization Program and invest in money market funds.

2020 OFFERINGS

a. JUNE 2020 OFFERINGS

On June 22, 2020, IMI completed private offerings of the following series of notes in the amounts set forth below (collectively, the "June 2020 Offerings"):

SERIES OF NOTES			AGGREGATE PRINCIPAL AMOUNT
5% Notes due 2028			$	500,000
51/4% Notes due 2030			1,300,000
55/8% Notes			600,000

The 5% Notes due 2028, the 51/4% Notes due 2030 and the 55/8% Notes were issued at 100.000% of par. The total net proceeds of approximately $2,376,000 from the June 2020 Offerings, after deducting the initial purchasers’ commissions, were used to redeem all of the 43/8% Notes, the 6% Notes and the 53/4% Notes and to repay a portion of the outstanding borrowings under the Revolving Credit Facility.

On June 29, 2020, we redeemed all of the $500,000 in aggregate principal outstanding of the 43/8% Notes at 100.000% of par and all of the $600,000 in aggregate principal outstanding of the 6% Notes at 102.000% of par, plus, in each case, accrued and unpaid interest to, but excluding, the redemption date. We recorded a charge of $17,040 to Other (income) expense, net during the second quarter of 2020 related to the early extinguishment of this debt, representing the call premium associated with the early redemption of the 6% Notes, as well as a write-off of unamortized deferred financing costs associated with the early redemption of the 43/8% Notes and the 6% Notes.

On July 2, 2020, we redeemed all of the $1,000,000 in aggregate principal outstanding of the 53/4% Notes at 100.958% of par, plus accrued and unpaid interest to, but excluding, the redemption date. We recorded a charge of $15,310 to Other (income) expense, net during the third quarter of 2020 related to the early extinguishment of this debt, representing the call premium and write-off of unamortized deferred financing fees.

b. AUGUST 2020 OFFERING

On August 18, 2020, IMI completed a private offering of:

SERIES OF NOTES			AGGREGATE PRINCIPAL AMOUNT
41/2% Notes			$	1,100,000

The 41/2% Notes were issued at 100.000% of par. The total net proceeds of approximately $1,089,000 from the issuance of the 41/2% Notes, after deducting the initial purchasers’ commissions, were used to redeem all of the CAD Notes, the Euro Notes, and the 53/8% Notes and to repay a portion of the outstanding borrowings under the Revolving Credit Facility.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

7. DEBT (CONTINUED)

On August 21, 2020, we redeemed all of the 250,000 CAD in aggregate principal outstanding of the CAD Notes at 104.031% of par, 300,000 Euro in aggregate principal outstanding of the Euro Notes at 101.500% of par and $250,000 in aggregate principal outstanding of the 53/8% Notes at 106.628% of par, plus, in each case accrued and unpaid interest to, but excluding, the redemption date. We recorded a charge of $35,950 to Other (income) expense, net during the third quarter of 2020 related to the early extinguishment of the CAD Notes, the Euro Notes and the 53/8% Notes, representing the call premiums and write off unamortized deferred financing costs associated with the early redemption of these debt instruments.

C. AUSTRALIAN DOLLAR TERM LOAN

Iron Mountain Australia Group Pty, Ltd. (“IM Australia”), a wholly owned subsidiary of IMI, has an AUD term loan with an original principal balance of 350,000 Australian dollars (“AUD Term Loan”). All indebtedness associated with the AUD Term Loan was issued at 99% of par. Principal payments on the AUD Term Loan are to be paid in quarterly installments in an aggregate amount of 8,750 Australian dollars per year. The AUD Term Loan bears interest at BBSY (an Australian benchmark variable interest rate) plus 3.875%. The AUD Term Loan is scheduled to mature on September 22, 2022, at which point all obligations become due. The full amount of the AUD Term Loan is classified within the current portion of long-term debt in our Consolidated Balance Sheet as of December 31, 2021.

As of December 31, 2021, we had 307,813 Australian dollars ($223,530 based upon the exchange rate between the United States dollar and the Australian dollar as of December 31, 2021) outstanding on the AUD Term Loan. As of December 31, 2020, we had 316,563 Australian dollars ($244,014 based upon the exchange rate between the United States dollar and the Australian dollar as of December 31, 2020) outstanding on the AUD Term Loan. The interest rate in effect under the AUD Term Loan was 4.0% and 3.9% as of December 31, 2021 and 2020, respectively.									OUTSTANDING BORROWINGS AU$307,813
						4.0% Interest rate
						As of December 31, 2021

D. UK BILATERAL REVOLVING CREDIT FACILITY

IM UK and Iron Mountain (UK) Data Centre Limited has a 140,000 British pounds sterling Revolving Credit Facility (the “UK Bilateral Facility”) with Barclays Bank PLC. The maximum amount permitted to be borrowed under the UK Bilateral Facility is 140,000 British pounds sterling, and we have the option to request additional commitments of up to 125,000 British pounds sterling, subject to the conditions specified in the UK Bilateral Facility. The UK Bilateral Facility is fully drawn. The UK Bilateral Facility is secured by certain properties in the United Kingdom. IMI and the Guarantors guarantee all obligations under the UK Bilateral Facility. On May 25, 2021, Iron Mountain (UK) PLC and Iron Mountain (UK) Data Centre Limited (collectively, the "UK Borrowers") entered into an amendment to the UK Bilateral Facility with Barclays Bank PLC to (i) modify the interest rate from LIBOR plus 2.25% to LIBOR plus 2.0% (with flexibility built in for the expected transition away from LIBOR) and (ii) add an additional option to extend the maturity date by one year. After this amendment, the UK Bilateral Facility contains two one-year options that allow us to extend the maturity date beyond the September 23, 2022 expiration date, subject to certain conditions specified in the UK Bilateral Facility, including the lender's consent. On September 23, 2021, the UK Borrowers executed the one-year option to extend the maturity date to September 24, 2023.The interest rate in effect under the UK Bilateral Facility was 2.1% and 2.3% as of December 31, 2021 and 2020, respectively.									MAXIMUM AMOUNT £140,000 OPTIONAL ADDITIONAL COMMITMENTS £125,000 2.1% Interest rate
						As of December 31, 2021

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

7. DEBT (CONTINUED)

E. ACCOUNTS RECEIVABLE SECURITIZATION PROGRAM

We participate in an accounts receivable securitization program (the “Accounts Receivable Securitization Program”) involving several of our wholly owned subsidiaries and certain financial institutions. Under the Accounts Receivable Securitization Program, certain of our subsidiaries sell substantially all of their United States accounts receivable balances to our wholly owned special purpose entities, Iron Mountain Receivables QRS, LLC and Iron Mountain Receivables TRS, LLC (the “Accounts Receivable Securitization Special Purpose Subsidiaries”). The Accounts Receivable Securitization Special Purpose Subsidiaries use the accounts receivable balances to collateralize loans obtained from certain financial institutions. The Accounts Receivable Securitization Special Purpose Subsidiaries are consolidated subsidiaries of IMI. The Accounts Receivable Securitization Program is accounted for as a collateralized financing activity, rather than a sale of assets, and therefore: (i) accounts receivable balances pledged as collateral are presented as assets and borrowings are presented as liabilities on our Consolidated Balance Sheets, (ii) our Consolidated Statements of Operations reflect the associated charges for bad debt expense related to pledged accounts receivable (a component of selling, general and administrative expenses) and reductions to revenue due to billing and service related credit memos issued to customers and related reserves, as well as interest expense associated with the collateralized borrowings and (iii) receipts from customers related to the underlying accounts receivable are reflected as operating cash flows and borrowings and repayments under the collateralized loans are reflected as financing cash flows within our Consolidated Statements of Cash Flows. IMIM retains the responsibility of servicing the accounts receivable balances pledged as collateral for the Accounts Receivable Securitization Program and IMI provides a performance guaranty. The maximum availability allowed is limited by eligible accounts receivable, as defined under the terms of the Accounts Receivable Securitization Program.

On June 28, 2021, we entered into an amendment to the Accounts Receivable Securitization Program to extend the maturity date from July 30, 2021 to July 1, 2023, at which point all obligations become due. The interest rate under the amended Accounts Receivable Securitization Program is LIBOR plus 1.0%. The full amount outstanding under the Accounts Receivable Securitization Program is classified within current portion of long-term debt at December 31, 2020 in our Condensed Consolidated Balance Sheets. There were no other changes to the terms of the Accounts Receivable Securitization Program.									MAXIMUM AMOUNT $300,000
						OUTSTANDING BORROWINGS $0 N/A Interest rate As of December 31, 2021

F. CASH POOLING

Certain of our subsidiaries participate in cash pooling arrangements (the “Cash Pools”) to help manage global liquidity requirements. Under the Cash Pools, cash deposited by participating subsidiaries with certain financial institutions are pledged as security against the debit balances of other participating subsidiaries, and legal rights of offset are provided and, therefore, amounts are presented in our Consolidated Balance Sheets on a net basis. Each subsidiary receives interest on the cash balances held on deposit or pays interest on its debit balances based on an applicable rate as defined in the Cash Pools.

We utilize two separate Cash Pools with Bank Mendes Gans (“BMG”), an independently operated wholly owned subsidiary of ING Group, one of which we utilize to manage global liquidity requirements for our qualified REIT subsidiaries (the “BMG QRS Cash Pool”) and the other for our taxable REIT subsidiaries (the “BMG TRS Cash Pool”). We have executed overdraft facility agreements for the BMG QRS Cash Pool and BMG TRS Cash Pool, each in an amount not to exceed $10,000. Each overdraft facility permits us to cover a temporary net debit position in the applicable pool.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

7. DEBT (CONTINUED)

During the third quarter of 2021, certain of our subsidiaries in the Asia Pacific region began to participate in two cash pooling arrangements with JP Morgan Chase Bank, N.A. (“JPM”), one of which we utilize to manage global liquidity requirements for our QRSs in the Asia Pacific region (the “JPM QRS Cash Pool") and the other for our TRSs in the Asia Pacific region (the "JPM TRS Cash Pool") (collectively, the “JPM Cash Pools”). We have executed overdraft facility agreements for the JPM QRS Cash Pool and the JPM TRS Cash Pool in amounts not to exceed $12,000 and $10,000, respectively. Each overdraft facility permits us to cover a temporary net debit position in the applicable pool.

The approximate amount of the net cash position, gross position and outstanding debit balances for each of our cash pools as of December 31, 2021 and 2020 were as follows:

			DECEMBER 31, 2021																		DECEMBER 31, 2020
			GROSS CASH POSITION						OUTSTANDING DEBIT BALANCES						NET CASH POSITION						GROSS CASH POSITION						OUTSTANDING DEBIT BALANCES						NET CASH POSITION
BMG QRS Cash Pool			$	552,900					$	(552,100)					$	800					$	448,700					$	(447,400)					$	1,300
BMG TRS Cash Pool			606,000						(603,900)						2,100						555,500						(553,500)						2,000
JPM QRS Cash Pool			9,400						(9,200)						200						—						—						—
JPM TRS Cash Pool			12,000						(9,900)						2,100						—						—						—

The net cash position balances as of December 31, 2021 and 2020 are reflected as Cash and cash equivalents in our Consolidated Balance Sheets.

G. LETTERS OF CREDIT

As of December 31, 2021, we had outstanding letters of credit totaling $36,480, of which $3,039 reduce our borrowing capacity under the Revolving Credit Facility (as described above). The letters of credit expire at various dates between January 2022 and March 2025.

H. DEBT COVENANTS

The Credit Agreement, our bond indentures and other agreements governing our indebtedness contain certain restrictive financial and operating covenants, including covenants that restrict our ability to complete acquisitions, pay cash dividends, incur indebtedness, make investments, sell assets and take other specified corporate actions. The covenants do not contain a rating trigger. Therefore, a change in our debt rating would not trigger a default under the Credit Agreement, our bond indentures or other agreements governing our indebtedness. The Credit Agreement requires that we satisfy a fixed charge coverage ratio, a net total lease adjusted leverage ratio and a net secured debt lease adjusted leverage ratio on a quarterly basis and our bond indentures require that, among other things, we satisfy a leverage ratio (not lease adjusted) or a fixed charge coverage ratio (not lease adjusted), as a condition to taking actions such as paying dividends and incurring indebtedness.

The Credit Agreement uses EBITDAR-based calculations and the bond indentures use EBITDA-based calculations as the primary measures of financial performance for purposes of calculating leverage and fixed charge coverage ratios. The bond indenture EBITDA-based calculations include our consolidated subsidiaries, other than those we have designated as “Unrestricted Subsidiaries” as defined in the bond indentures. Generally, the Credit Agreement and the bond indentures use a trailing four fiscal quarter basis for purposes of the relevant calculations and require certain adjustments and exclusions for purposes of those calculations, which make the calculation of financial performance for purposes of those calculations under the Credit Agreement and bond indentures not directly comparable to Adjusted EBITDA as presented herein. We are in compliance with our leverage and fixed charge coverage ratios under the Credit Agreement, our bond indentures and other agreements governing our indebtedness as of December 31, 2021 and 2020. Noncompliance with these leverage and fixed charge coverage ratios would have a material adverse effect on our financial condition.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

7. DEBT (CONTINUED)

I. MATURITIES OF LONG-TERM DEBT (GROSS OF DISCOUNTS) ARE AS FOLLOWS:

YEAR						AMOUNT
2022						$	310,432
2023						445,318
2024						42,716
2025						569,806
2026						717,368
Thereafter						7,280,062
						9,365,702
Net Discounts						(1,251)
Net Deferred Financing Costs						(92,510)
Total Long-term Debt (including current portion)						$	9,271,941

8. COMMITMENTS AND CONTINGENCIES

A. PURCHASE COMMITMENTS

We have certain contractual obligations related to purchase commitments which require minimum payments as follows:

YEAR						PURCHASE COMMITMENTS**(1)**
2022						$	295,529
2023						70,853
2024						64,105
2025						38,567
2026						7,646
Thereafter						855
						$	477,555

(1)Purchase commitments (i) include obligations for future construction costs associated with the expansion of our Global Data Center Business, which represent a significant amount of the purchase commitments due in 2022 and (ii) exclude our operating and financing lease obligations (see Note 2.i.).

B. SELF-INSURED LIABILITIES

We are self-insured up to certain limits for costs associated with workers’ compensation claims, vehicle accidents, property and general business liabilities, and benefits paid under employee healthcare and short-term disability programs. At December 31, 2021 and 2020, there were $46,797 and $47,959, respectively, of self-insurance accruals reflected in Accrued expenses on our Consolidated Balance Sheets. The measurement of these costs requires the consideration of historical cost experience and judgments about the present and expected levels of cost per claim. We account for these costs primarily through actuarial methods, which develop estimates of the undiscounted liability for claims incurred, including those claims incurred but not reported. These methods provide estimates of future claim costs based on claims incurred as of the balance sheet date.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

8. COMMITMENTS AND CONTINGENCIES (CONTINUED)

C. LITIGATION—GENERAL

We are involved in litigation from time to time in the ordinary course of business, including litigation arising from damage to customer assets in our facilities caused by fires and other natural disasters. A portion of the defense and/or settlement costs associated with such litigation is covered by various commercial liability insurance policies purchased by us and, in limited cases, indemnification from third parties. Our policy is to establish reserves for loss contingencies when the losses are both probable and reasonably estimable. We record legal costs associated with loss contingencies as expenses in the period in which they are incurred. While the outcome of litigation is inherently uncertain, we do not believe any current litigation will have a material adverse effect on our consolidated financial condition, results of operations or cash flows. We have estimated a reasonably possible range for all loss contingencies and believe it is reasonably possible that we could incur aggregate losses in addition to amounts currently accrued for all matters up to an additional $25,000 over the next several years.

9. STOCKHOLDERS’ EQUITY MATTERS

Our board of directors has adopted a dividend policy under which we have paid, and in the future intend to pay, quarterly cash dividends on our common stock. The amount and timing of future dividends will continue to be subject to the approval of our board of directors, in its sole discretion, and to applicable legal requirements.

In 2019, 2020 and 2021, our board of directors declared the following dividends:

DECLARATION DATE						DIVIDEND PER SHARE						RECORD DATE						TOTAL AMOUNT						PAYMENT DATE
February 7, 2019						$	0.6110					March 15, 2019						$	175,242					April 2, 2019
May 22, 2019						0.6110						June 17, 2019						175,389						July 2, 2019
July 26, 2019						0.6110						September 16, 2019						175,434						October 2, 2019
October 31, 2019						0.6185						December 16, 2019						177,687						January 2, 2020
February 13, 2020						0.6185						March 16, 2020						178,047						April 6, 2020
May 5, 2020						0.6185						June 15, 2020						178,212						July 2, 2020
August 5, 2020						0.6185						September 15, 2020						178,224						October 2, 2020
November 4, 2020						0.6185						December 15, 2020						178,290						January 6, 2021
February 24, 2021						0.6185						March 15, 2021						178,569						April 6, 2021
May 6, 2021						0.6185						June 15, 2021						179,026						July 6, 2021
August 5, 2021						0.6185						September 15, 2021						179,080						October 6, 2021
November 4, 2021						0.6185						December 15, 2021						179,132						January 6, 2022

On February 24, 2022, we declared a dividend to our stockholders of record as of March 15, 2022 of $0.6185 per share, payable on April 6, 2022.

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DECEMBER 31, 2021

(In thousands, except share and per share data)

9. STOCKHOLDERS’ EQUITY MATTERS (CONTINUED)

During the years ended December 31, 2021, 2020 and 2019, we declared dividends in an aggregate and per share amount, based on the weighted average number of common shares outstanding during each respective year, as follows:

			YEAR ENDED DECEMBER 31,
			2021						2020						2019
Declared distributions			$	715,807					$	712,773					$	703,752
Amount per share each distribution represents based on weighted average number of common shares outstanding			2.47						2.47						2.45

For federal income tax purposes, distributions to our stockholders are generally treated as nonqualified ordinary dividends (potentially eligible for the lower effective tax rates available for “qualified REIT dividends”), qualified ordinary dividends or return of capital. The United States Internal Revenue Service requires historical C corporation earnings and profits to be distributed prior to any REIT distributions, which may affect the character of each distribution to our stockholders, including whether and to what extent each distribution is characterized as a qualified or nonqualified ordinary dividend. In addition, certain of our distributions qualify as capital gain distributions. For the years ended December 31, 2021, 2020, and 2019, the dividends we paid on our common shares were classified as follows:

			YEAR ENDED DECEMBER 31,
			2021						2020						2019
Nonqualified ordinary dividends			53.9		%				43.0		%				54.8		%
Qualified ordinary dividends			13.0		%				0.0		%				4.5		%
Capital gains			21.8		%				49.5		%				14.7		%
Return of capital			11.3		%				7.5		%				26.0		%
			100.0		%				100.0		%				100.0		%

Dividends paid during the years ended December 31, 2021, 2020, and 2019 which were classified as qualified ordinary dividends for federal income tax purposes primarily related to the distribution of historical C corporation earnings and profits related to certain acquisitions completed during the years ended December 31, 2021, 2020, and 2019. In 2021, the percentage of our dividend that was classified as a capital gain was 21.8% and was primarily related to the sale of land and buildings in the United States and the United Kingdom. In 2020, the percentage of our dividend that was classified as a capital gain was 49.5% and primarily related to the sale of land and buildings in the United States. In 2019, the percentage of our dividend that was classified as a capital gain was 14.7% and primarily related to the sale of land and buildings in the United Kingdom.

10. INCOME TAXES

We have been organized and have operated as a REIT effective beginning with our taxable year that ended on December 31, 2014. As a REIT, we are generally permitted to deduct from our federal taxable income the dividends we pay to our stockholders. The income represented by such dividends is not subject to federal taxation at the entity level but is taxed, if at all, at the stockholder level. The income of our domestic taxable REIT subsidiaries (“TRSs”), which hold our domestic operations that may not be REIT-compliant as currently operated and structured, is subject, as applicable, to federal and state corporate income tax. In addition, we and our subsidiaries continue to be subject to foreign income taxes in other jurisdictions in which we have business operations or a taxable presence, regardless of whether assets are held or operations are conducted through subsidiaries disregarded for federal income tax purposes or TRSs. We will also be subject to a separate corporate income tax on any gains recognized on the sale or disposition of any asset previously owned by a C corporation during a five-year period after the date we first owned the asset as a REIT asset that are attributable to “built-in gains” with respect to that asset on that date. We will also be subject to a built-in gains tax on our depreciation recapture recognized into income as a result of accounting method changes in connection with our acquisition activities. If we fail to remain qualified for taxation as a REIT, we will be subject to federal income tax at regular corporate income tax rates. Even if we remain qualified for taxation as a REIT, we may be subject to some federal, state, local and foreign taxes on our income and property in addition to taxes owed with respect to our TRS operations. In particular, while state income tax regimes often parallel the federal income tax regime for REITs, many states do not completely follow federal rules and some do not follow them at all.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

10. INCOME TAXES (CONTINUED)

The significant components of our deferred tax assets and deferred tax liabilities as of December 31, 2021 and 2020 are presented below:

			DECEMBER 31,
			2021						2020
Deferred Tax Assets:
Accrued liabilities and other adjustments			$	54,859					$	52,527
Net operating loss carryforwards			90,996						96,710
Valuation allowance			(51,744)						(46,938)
			94,111						102,299
Deferred Tax Liabilities:
Other assets, principally due to differences in amortization			(178,657)						(186,682)
Plant and equipment, principally due to differences in depreciation			(76,204)						(59,711)
Other			(46,281)						(29,265)
			(301,142)						(275,658)
Net deferred tax liability			$	(207,031)					$	(173,359)

The deferred tax assets and deferred tax liabilities as of December 31, 2021 and 2020 are presented below:

			DECEMBER 31,
			2021						2020
Noncurrent deferred tax assets (Included in Other, a component of Other assets, net)			$	16,903					$	25,018
Deferred income taxes			(223,934)						(198,377)

At December 31, 2021, we have federal and state net operating loss carryforwards of which we are expecting an insignificant tax benefit to be realized. We have assets for foreign net operating losses of $85,466, with various expiration dates (and in some cases no expiration date), subject to a valuation allowance of approximately 47%.

Rollforward of the valuation allowance is as follows:

YEAR ENDED DECEMBER 31,						BALANCE AT BEGINNING OF THE YEAR						CHARGED (CREDITED) TO EXPENSE						OTHER INCREASES/ (DECREASES)****(1)						BALANCE AT END OF THE YEAR
2021						$	46,938					$	8,406					$	(3,600)					$	51,744
2020						60,003						(8,337)						(4,728)						46,938
2019						55,666						6,211						(1,874)						60,003

(1)Other increases and decreases in valuation allowances are primarily related to changes in foreign currency exchange rates.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

10. INCOME TAXES (CONTINUED)

The components of income (loss) from continuing operations before provision (benefit) for income taxes for the years ended December 31, 2021, 2020 and 2019 are as follows:

			YEAR ENDED DECEMBER 31,
			2021						2020						2019
United States			$	212,460					$	276,145					$	203,225
Canada			78,780						52,332						48,326
Other Foreign			337,775						44,228						76,591
			$	629,015					$	372,705					$	328,142

The provision (benefit) for income taxes for the years ended December 31, 2021, 2020 and 2019 consist of the following components:

			YEAR ENDED DECEMBER 31,
			2021						2020						2019
Federal—current			$	54,867					$	(10,424)					$	7,262
Federal—deferred			14,322						8,834						(3,356)
State—current			9,566						2,956						3,943
State—deferred			(526)						(625)						(1,126)
Foreign—current			83,154						50,063						49,350
Foreign—deferred			14,907						(21,195)						3,858
Provision (Benefit) for Income Taxes			$	176,290					$	29,609					$	59,931

A reconciliation of total income tax expense and the amount computed by applying the current federal statutory tax rate of 21.0% to income (loss) from continuing operations before provision (benefit) for income taxes for the years ended December 31, 2021, 2020 and 2019, respectively, is as follows:

			YEAR ENDED DECEMBER 31,
			2021						2020						2019
Computed "expected” tax provision			$	132,093					$	78,268					$	68,910
Changes in income taxes resulting from:
Tax adjustment relating to REIT			(8,203)						(60,378)						(40,577)
State taxes (net of federal tax benefit)			8,027						2,258						2,115
Increase (decrease) in valuation allowance (net operating losses)			8,406						(8,337)						6,211
Withholding Taxes			23,654						6,835						5,281
Reserve (reversal) accrual and audit settlements (net of federal tax benefit)			3,072						(7,409)						514
Foreign tax rate differential			9,856						9,472						8,562
Disallowed foreign interest, Subpart F income, and other foreign taxes			(3,437)						13,407						8,960
Other, net			2,822						(4,507)						(45)
Provision (Benefit) for Income Taxes			$	176,290					$	29,609					$	59,931

Our effective tax rates for the years ended December 31, 2021, 2020 and 2019 were 28.0%, 7.9% and 18.3%, respectively. Our effective tax rate is subject to variability in the future due to, among other items: (1) changes in the mix of income between our qualified REIT subsidiaries (“QRSs”) and our TRSs, as well as among the jurisdictions in which we operate; (2) tax law changes; (3) volatility in foreign exchange gains and losses; (4) the timing of the establishment and reversal of tax reserves; and (5) our ability to utilize net operating losses that we generate.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

10. INCOME TAXES (CONTINUED)

The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate were:

YEAR ENDED DECEMBER 31,
2021			2020			2019
The benefit derived from the dividends paid deduction of $8,203 which was offset by (1) the impact of differences in the tax rates at which our foreign earnings are subject to, resulting in a tax provision of $9,856, and (2) foreign withholding taxes of $23,654, which were either paid during the year or accrued, for the deferred tax liability for the U.S. tax impact of undistributed earnings of foreign TRSs that are no longer intended to be permanently reinvested outside the United States.			The benefit derived from the dividends paid deduction of $60,378 and the impact of differences in the tax rates at which our foreign earnings are subject to, resulting in a tax provision of $9,472.			The benefit derived from the dividends paid deduction of $40,577 and the impact of differences in the tax rates at which our foreign earnings are subject to, resulting in a tax provision of $8,562.

As a REIT, we are entitled to a deduction for dividends paid, resulting in a substantial reduction of federal income tax expense. As a REIT, substantially all of our income tax expense will be incurred based on the earnings generated by our foreign subsidiaries and our domestic TRSs.

Following our conversion to a REIT in 2014, we concluded that it was not our intent to reinvest our current and future undistributed earnings of our foreign subsidiaries indefinitely outside the United States. As of December 31, 2016, we concluded that it is our intent to indefinitely reinvest our current and future undistributed earnings of certain of our unconverted foreign TRSs outside the United States. During 2021, as a result of the enactment of a tax law and the closing of various acquisitions, we reassessed this intention and concluded that it is no longer our intention to reinvest our undistributed earnings of our foreign TRSs indefinitely outside the United States. As a REIT, future repatriation of incremental undistributed earnings of our foreign subsidiaries will not be subject to federal or state income tax, with the exception of foreign withholding taxes. However, such future repatriations may require distributions to our stockholders in accordance with REIT distribution rules, and any such distribution may then be taxable, as appropriate, at the stockholder level. We expect to provide for foreign withholding taxes on the current and future earnings of all of our foreign subsidiaries as the result of such reassessment.

The evaluation of an uncertain tax position is a two-step process. The first step is a recognition process whereby we determine whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The second step is a measurement process whereby a tax position that meets the more likely than not recognition threshold is calculated to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement.

We have elected to recognize interest and penalties associated with uncertain tax positions as a component of the provision (benefit) for income taxes in the accompanying Consolidated Statements of Operations. We recorded an increase of $823 and $1,780 for gross interest and penalties for the years ended December 31, 2021 and 2019, respectively. We recorded a decrease of $1,499 for gross interest and penalties for the year ended December 31, 2020. We had $6,805 and $6,212 accrued for the payment of interest and penalties as of December 31, 2021 and 2020, respectively.

A summary of tax years that remain subject to examination by major tax jurisdictions is as follows:

TAX YEARS						TAX JURISDICTION
See Below						United States—Federal and State
2020 to present						United Kingdom
2014 to present						Canada

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

10. INCOME TAXES (CONTINUED)

The normal statute of limitations for United States federal tax purposes is three years from the date the tax return is filed; however, the statute of limitations may remain open for periods longer than three years in instances where a federal tax examination is in progress. The 2020, 2019 and 2018 tax years remain subject to examination for United States federal tax purposes as well as net operating loss carryforwards utilized in these years. The normal statute of limitations for state purposes is between three to five years. However, certain of our state statute of limitations remain open for periods longer than this when audits are in progress.

We are subject to income taxes in the United States and numerous foreign jurisdictions. We are subject to examination by various tax authorities in jurisdictions in which we have business operations or a taxable presence. We regularly assess the likelihood of additional assessments by tax authorities and provide for these matters as appropriate. As of December 31, 2021, we had $27,772 of reserves related to uncertain tax positions, of which $24,627 and $3,145 is included in other long-term liabilities and deferred income taxes, respectively, in the accompanying Consolidated Balance Sheet. As of December 31, 2020, we had $25,969 of reserves related to uncertain tax positions, of which $23,402 and $2,567 is included in other long-term liabilities and deferred income taxes, respectively, in the accompanying Consolidated Balance Sheet. Although we believe our tax estimates are appropriate, the final determination of tax audits and any related litigation could result in changes in our estimates.

A rollforward of unrecognized tax benefits is as follows:

Gross tax contingencies—December 31, 2018			$	35,320
Gross additions based on tax positions related to the current year			2,914
Gross additions for tax positions of prior years			1,271
Gross reductions for tax positions of prior years			(299)
Lapses of statutes			(4,034)
Settlements			(104)
Gross tax contingencies—December 31, 2019			35,068
Gross additions based on tax positions related to the current year			2,907
Gross additions for tax positions of prior years			80
Gross reductions for tax positions of prior years			(5,617)
Lapses of statutes			(4,480)
Settlements			(1,989)
Gross tax contingencies—December 31, 2020			25,969
Gross additions based on tax positions related to the current year			3,893
Gross additions for tax positions of prior years			344
Gross reductions for tax positions of prior years			(536)
Lapses of statutes			(1,663)
Settlements			(235)
Gross tax contingencies—December 31, 2021			$	27,772

The reversal of these reserves of $27,772 as of December 31, 2021 will be recorded as a reduction of our income tax provision, if sustained. We believe that it is reasonably possible that an amount up to approximately $5,364 of our unrecognized tax positions may be recognized by the end of 2022 as a result of a lapse of statute of limitations or upon closing and settling significant audits in various worldwide jurisdictions.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

11. SEGMENT INFORMATION

As of December 31, 2021, our three reportable segments are described as follows:

(1)Global Records and Information Management (“Global RIM”) Business includes several distinct offerings:

(i)Records Management, which stores physical records and provides healthcare information services, vital records services, courier operations, and the collection, handling and disposal of sensitive documents (collectively, “Records Management”) for customers in 63 countries around the globe.

(ii)Data Management, which provides storage and rotation of backup computer media as part of corporate disaster recovery plans, including service and courier operations (“Data Protection & Recovery”); server and computer backup services; and related services offerings, (collectively, “Data Management”).

(iii)Global Digital Solutions, which develops, implements and supports comprehensive storage and information management solutions for the complete lifecycle of our customers’ information, including the management of physical records, conversion of documents to digital formats and digital storage of information, primarily in the United States and Canada.

(iv)Secure Shredding, which includes the scheduled pick-up of office records that customers accumulate in specially designed secure containers we provide and is a natural extension of our hardcopy records management operations, completing the lifecycle of a record. Complementary to our shredding operations is the sale of the resultant waste paper to third-party recyclers. Through a combination of shredding facilities and mobile shredding units consisting of custom built trucks, we are able to offer secure shredding services to our customers throughout the United States, Canada and South Africa.

(v)Secure IT Asset Disposition ("Secure ITAD"), a component of asset life cycle management, provides secure disposition of obsolete IT assets with: industry leading secure logistics and chain of custody practices, environmentally-responsible asset processing and recycling, and data sanitization and asset refurbishment services that enable value recovery through asset remarketing. Our service focuses on protecting and eradicating customer data while maintaining strong, audible, and transparent chain of custody practices. We are able to offer this service in over 30 countries.

(vi)Consumer Storage, which provides on-demand, valet storage for consumers (“Consumer Storage”) across 31 markets in North America through a strategic partnership that utilizes data analytics and machine learning to provide effective customer acquisition and a convenient and seamless consumer storage experience.

(2)Global Data Center Business, which provides enterprise-class data center facilities and hyperscale-ready capacity to protect mission-critical assets and ensure the continued operation of our customers’ IT infrastructure, with secure, reliable and flexible data center options. As of December 31, 2021, our Global Data Center Business footprint spans nine markets in the United States and seven international markets.

UNITED STATES			INTERNATIONAL MARKETS
Denver, Colorado			Amsterdam
Kansas City, Missouri			London
Boston, Massachusetts			Singapore
Boyers, Pennsylvania			Frankfurt (directly and through an unconsolidated joint venture)
Manassas, Virginia			Mumbai (through an unconsolidated joint venture)
Edison, New Jersey			Pune (through an unconsolidated joint venture)
Columbus, Ohio			Noida (through an unconsolidated joint venture)
Phoenix and Scottsdale, Arizona

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

11. SEGMENT INFORMATION (CONTINUED)

(3)Corporate and Other Business, which consists primarily of Adjacent Businesses and other corporate items. Our Adjacent Businesses is comprised of:

(i)Entertainment Services, which includes entertainment and media that helps industry clients store, safeguard and deliver physical media of all types, and provides digital content repository systems that house, distribute, and archive key media assets, throughout the United States, Canada, France, China - Hong Kong S.A.R., the Netherlands and the United Kingdom and

(ii)Fine Arts, which provides technical expertise in the handling, installation and storing of art in the United States, Canada and Europe.

Our Corporate and Other Business segment also includes costs related to executive and staff functions, including finance, human resources and IT, which benefit the enterprise as a whole.

An analysis of our business segment information and reconciliation to the accompanying Consolidated Financial Statements is as follows:

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

11. SEGMENT INFORMATION (CONTINUED)

			GLOBAL RIM BUSINESS						GLOBAL DATA CENTER BUSINESS						CORPORATE AND OTHER BUSINESS						TOTAL CONSOLIDATED
As of and for the Year Ended December 31, 2021
Total Revenues			$	3,976,163					$	326,898					$	188,470					$	4,491,531
Storage Rental			2,471,894						289,592						108,633						2,870,119
Service			1,504,269						37,306						79,837						1,621,412
Depreciation and Amortization			468,527						148,023						63,872						680,422
Depreciation			313,701						93,679						57,692						465,072
Amortization			154,826						54,344						6,180						215,350
Adjusted EBITDA			1,734,227						137,349						(236,877)						1,634,699
Total Assets(1)			11,028,611						2,911,823						509,597						14,450,031
Expenditures for Segment Assets			368,271						422,274						96,353						886,898
Capital Expenditures			211,917						320,768						78,397						611,082
Cash Paid for Acquisitions, Net of Cash Acquired			97,044						88,998						17,956						203,998
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs			59,310						12,508						—						71,818
As of and for the Year Ended December 31, 2020
Total Revenues			$	3,699,280					$	279,312					$	168,678					$	4,147,270
Storage Rental			2,373,783						263,695						116,613						2,754,091
Service			1,325,497						15,617						52,065						1,393,179
Depreciation and Amortization			455,567						134,844						61,658						652,069
Depreciation			309,969						83,106						54,487						447,562
Amortization			145,598						51,738						7,171						204,507
Adjusted EBITDA			1,574,069						126,576						(224,924)						1,475,721
Total Assets(1)			10,938,359						2,727,654						483,254						14,149,267
Expenditures for Segment Assets			338,006						249,459						44,389						631,854
Capital Expenditures			150,175						243,699						44,389						438,263
Cash Paid for Acquisitions, Net of Cash Acquired			118,581						—						—						118,581
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs			69,250						5,760						—						75,010
As of and for the Year Ended December 31, 2019
Total Revenues			$	3,812,433					$	257,151					$	193,000					$	4,262,584
Storage Rental			2,320,076						246,925						114,086						2,681,087
Service			1,492,357						10,226						78,914						1,581,497
Depreciation and Amortization			454,652						133,927						69,622						658,201
Depreciation			330,534						78,939						46,850						456,323
Amortization			124,118						54,988						22,772						201,878
Adjusted EBITDA			1,566,065						121,517						(218,573)						1,469,009
Total Assets(1)			10,753,218						2,535,848						527,750						13,816,816
Expenditures for Segment Assets			398,690						427,935						56,242						882,867
Capital Expenditures			248,232						392,029						52,722						692,983
Cash Paid for Acquisitions, Net of Cash Acquired			54,717						—						3,520						58,237
Acquisitions of Customer Relationships, Customer Inducements, Contract Fulfillment Costs and third-party commissions			95,741						35,906						—						131,647

(1)Excludes all intercompany receivables or payables and investment in subsidiary balances.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

11. SEGMENT INFORMATION (CONTINUED)

The accounting policies of the reportable segments are the same as those described in Note 2. Adjusted EBITDA for each segment is defined as income (loss) from continuing operations before interest expense, net, provision (benefit) for income taxes, depreciation and amortization (inclusive of our share of Adjusted EBITDA from our unconsolidated joint ventures), and excluding certain items we do not believe to be indicative of our core operating results, specifically:

EXCLUDED
•Acquisition and Integration Costs •Restructuring Charges •Intangible impairments •(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate)			•Other (income) expense, net •Stock-based compensation expense •COVID-19 Costs (as defined below)

Internally, we use Adjusted EBITDA as the basis for evaluating the performance of, and allocated resources to, our operating segments.

A reconciliation of Income (Loss) from Continuing Operations to Adjusted EBITDA on a consolidated basis for the years ended December 31, 2021, 2020 and 2019 is as follows:

			YEAR ENDED DECEMBER 31,
			2021						2020						2019
Income (Loss) from Continuing Operations			$	452,725					$	343,096					$	268,211
Add/(Deduct):
Interest expense, net			417,961						418,535						419,298
Provision (benefit) for income taxes			176,290						29,609						59,931
Depreciation and amortization			680,422						652,069						658,201
Acquisition and Integration Costs			12,764						—						13,293
Restructuring Charges			206,426						194,396						48,597
Intangible impairments			—						23,000						—
(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate)			(172,041)						(363,537)						(63,824)
Other (income) expense, net, excluding our share of losses (gains) from our unconsolidated joint ventures(1)			(205,746)						133,611						25,720
Stock-based compensation expense			61,001						34,272						36,194
COVID-19 Costs(2)			—						9,285						—
Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures			4,897						1,385						3,388
Adjusted EBITDA			$	1,634,699					$	1,475,721					$	1,469,009

(1)Includes foreign currency transaction (gains) losses, net, debt extinguishment expense and other, net.

(2)Costs that are incremental and directly attributable to the COVID-19 pandemic which are not expected to recur once the pandemic ends (“COVID-19 Costs”). For the year ended December 31, 2020, approximately $7,600 and $1,600 of COVID-19 Costs are included within Cost of sales and Selling, general and administrative expenses, respectively, on our Consolidated Statement of Operations. These costs include the purchase of personal protective equipment for our employees and incremental cleaning costs of our facilities, among other direct costs.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

11. SEGMENT INFORMATION (CONTINUED)

Information as to our operations in different geographical areas for the years ended December 31, 2021, 2020 and 2019 is as follows:

			YEAR ENDED DECEMBER 31,
			2021						2020						2019
Revenues:
United States			$	2,713,147					$	2,577,084					$	2,632,586
United Kingdom			294,675						247,667						274,931
Canada			252,385						224,860						243,033
Australia			148,431						133,815						143,511
Remaining Countries			1,082,893						963,844						968,523
Long-lived Assets:
United States			$	7,867,841					$	7,818,059					$	7,862,262
United Kingdom			914,732						838,491						755,859
Canada			562,911						556,120						556,591
Australia			528,703						575,862						530,755
Remaining Countries			3,134,577						3,090,948						2,875,010

Information as to our revenues by product and service lines by segment for the years ended December 31, 2021, 2020 and 2019 is as follows:

			GLOBAL RIM BUSINESS						GLOBAL DATA CENTER BUSINESS						CORPORATE AND OTHER BUSINESS						TOTAL CONSOLIDATED
For the Year Ended December 31, 2021
Records Management(1)			$	3,074,605					$	—					$	125,784					$	3,200,389
Data Management(1)			466,517						—						62,686						529,203
Information Destruction(1)(2)			435,041						—						—						435,041
Data Center(1)			—						326,898						—						326,898
For the Year Ended December 31, 2020
Records Management(1)			$	2,852,296					$	—					$	102,003					$	2,954,299
Data Management(1)			488,198						—						66,675						554,873
Information Destruction(1)(2)			358,786						—						—						358,786
Data Center(1)			—						279,312						—						279,312
For the Year Ended December 31, 2019
Records Management(1)			$	2,866,192					$	—					$	128,954					$	2,995,146
Data Management(1)			520,082						—						64,046						584,128
Information Destruction(1)(2)			426,159						—						—						426,159
Data Center(1)			—						257,151						—						257,151

(1)Each of the offerings within our product and service lines has a component of revenue that is storage rental related and a component that is service revenues, except the destruction services offering, which does not have a storage rental component.

(2)Includes Secure Shredding services.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

12. RELATED PARTY TRANSACTIONS

In October 2020, in connection with the Frankfurt JV Transaction, we entered into agreements whereby we will earn various fees, including (i) special project revenue and (ii) property management and construction and development fees for services we are providing to the Frankfurt JV (the “Frankfurt JV Agreements”). Revenues and expenses associated with the Frankfurt JV Agreements are presented as a component of our Global Data Business segment. During the years ended December 31, 2021 and 2020, we recognized revenue of approximately $19,600 and $400, respectively, associated with the Frankfurt JV Agreements.

In March 2019, in connection with the Consumer Storage Transaction and the MakeSpace Investment, we entered into a storage and service agreement with the MakeSpace JV to provide certain storage and related services to the MakeSpace JV (the "MakeSpace Agreement”). Revenues and expenses associated with the MakeSpace Agreement are presented as a component of our Global RIM Business segment. During the years ended December 31, 2021, 2020 and 2019, we recognized revenue of approximately $34,700, $33,600, and $22,500, respectively, associated with the MakeSpace Agreement.

During the years ended December 31, 2021, 2020 and 2019, the Company had no other related party transactions.

13. PROJECT SUMMIT

In October 2019, we announced Project Summit, our global program designed to better position us for future growth and achievement of our strategic objectives. We expanded Project Summit during the first quarter of 2020 to include additional opportunities to streamline our business and operations, as well as accelerated the timing of certain opportunities previously identified. As of December 31, 2021, we have completed Project Summit. As a result of the program we have simplified our global structure, rebalanced resources to focus on higher growth areas, realigned our management structure to create a more dynamic, agile organization, made investments to enhance the customer experience and leveraged new technology solutions that enabled us to modernize our service delivery model and more efficiently utilize our fleet, labor and real estate.

The implementation of Project Summit resulted in total operating expenditures ("Restructuring Charges") of approximately $450,000 that primarily consisted of: (1) employee severance costs; (2) internal costs associated with the development and implementation of Project Summit initiatives; (3) professional fees, primarily related to third party consultants who assisted with the design and execution of various initiatives as well as project management activities and (4) system implementation and data conversion costs.

Restructuring Charges included in the accompanying Consolidated Statement of Operations for the years ended December 31, 2021, 2020 and 2019, and from the inception of Project Summit through December 31, 2021, are as follows:

						YEAR ENDED DECEMBER 31, 2021						YEAR ENDED DECEMBER 31, 2020						YEAR ENDED DECEMBER 31, 2019						FROM INCEPTION OF PROJECT SUMMIT THROUGH DECEMBER 31, 2021
Employee severance costs						$	22,809					$	47,349					$	20,850					$	91,008
Professional fees and other costs						183,617						147,047						27,747						358,411
Restructuring Charges						$	206,426					$	194,396					$	48,597					$	449,419

Restructuring Charges included in the accompanying Consolidated Statement of Operations by segment for the years ended December 31, 2021, 2020 and 2019, and from inception of Project Summit through December 31, 2021, are as follows:

						YEAR ENDED DECEMBER 31, 2021						YEAR ENDED DECEMBER 31, 2020						YEAR ENDED DECEMBER 31, 2019						FROM INCEPTION OF PROJECT SUMMIT THROUGH DECEMBER 31, 2021
Global RIM Business						$	59,033					$	67,140					$	21,900					$	148,073
Global Data Center Business						3,062						1,632						306						5,000
Corporate and Other Business						144,331						125,624						26,391						296,346
Restructuring Charges						$	206,426					$	194,396					$	48,597					$	449,419

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2021

(In thousands, except share and per share data)

13. PROJECT SUMMIT (CONTINUED)

A rollforward of the accrued Restructuring Charges, which is included as a component of Accrued expenses and other current liabilities in our Consolidated Balance Sheet from the inception of Project Summit through December 31, 2021 is as follows:

						EMPLOYEE SEVERANCE COSTS						PROFESSIONAL FEES AND OTHER						TOTAL ACCRUED RESTRUCTURING CHARGES
Inception of Project Summit						$	—					$	—					$	—
Amounts accrued						20,850						27,747						48,597
Payments						(16,027)						(14,793)						(30,820)
Balance as of December 31, 2019						4,823						12,954						17,777
Amounts accrued						47,349						147,047						194,396
Payments						(32,455)						(136,222)						(168,677)
Other, including currency translation adjustments						(3,439)						(4)						(3,443)
Balance as of December 31, 2020						$	16,278					$	23,775					$	40,053
Amounts accrued						22,809						183,617						206,426
Payments						(29,956)						(199,664)						(229,620)
Other, including currency translation adjustments						2,858						—						2,858
Balance as of December 31, 2021						$	11,989					$	7,728					$	19,717

14. SUBSEQUENT EVENTS

On January 25, 2022, we acquired an approximately 80% interest in Intercept Parent, Inc. (“ITRenew”), a company with asset lifecycle management operations primarily in the United States, for approximately $725,000 (the “ITRenew Transaction”). The acquisition agreement also provides us the option to purchase, and the shareholders the option to sell, the remaining approximately 20% interest in ITRenew as follows: (i) approximately 16% on or after the second anniversary of the ITRenew Transaction and (ii) approximately 4% on or after the third anniversary of the ITRenew Transaction (collectively, the ”Remaining Interest"), each at a purchase price to be determined based upon the achievement of certain performance metrics, but for no less than $200,000 in total.

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SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION

DECEMBER 31, 2021

(Dollars in thousands)

Schedule III - Schedule of Real Estate and Accumulated Depreciation (“Schedule III”) reflects the cost and associated accumulated depreciation for the real estate facilities that are owned. The gross cost included in Schedule III includes the cost for land, land improvements, buildings, building improvements and racking. Schedule III does not reflect the 1,184 leased facilities in our real estate portfolio. In addition, Schedule III does not include any value for financing leases for property that is classified as land, buildings and building improvements in our consolidated financial statements.

The following table presents a reconciliation of the gross amount of real estate assets, as presented in Schedule III below, to the sum of the historical book value of land, buildings and building improvements, racking and construction in progress as disclosed in Note 2.h. to Notes to Consolidated Financial Statements as of December 31, 2021:

Gross Amount of Real Estate Assets, As Reported on Schedule III			$	4,129,251
Add Reconciling Items:
Book value of racking included in leased facilities(1)			1,483,435
Book value of financing leases(2)			385,238
Book value of construction in progress(3)			225,817
Total Reconciling Items			2,094,490
Gross Amount of Real Estate Assets, As Disclosed in Note 2.h.			$	6,223,741

(1)Represents the gross book value of racking installed in our 1,184 leased facilities, which is included in historical book value of racking in Note 2.h., but excluded from Schedule III.

(2)Represents the gross book value of buildings and building improvements that are subject to financing leases, which are included in the historical book value of building and building improvements in Note 2.h., but excluded from Schedule III.

(3)Represents the gross book value of non-real estate assets that are included in the historical book value of construction in progress assets in Note 2.h. The historical book value of real estate assets associated with owned buildings that were related to construction in progress as of December 31, 2021 is included in Schedule III.

The following table presents a reconciliation of the accumulated depreciation of real estate assets, as presented in Schedule III below, to the total accumulated depreciation for all property, plant and equipment presented on our Consolidated Balance Sheet as of December 31, 2021:

Accumulated Depreciation of Real Estate Assets, As Reported on Schedule III			$	1,160,490
Add Reconciling Items:
Accumulated Depreciation - non-real estate assets(1)			1,662,689
Accumulated Depreciation - racking in leased facilities(2)			1,032,075
Accumulated Depreciation - financing leases(3)			123,905
Total Reconciling Items			2,818,669
Accumulated Depreciation, As Reported on Consolidated Balance Sheet			$	3,979,159

(1)Represents the accumulated depreciation of non-real estate assets that is included in the total accumulated depreciation of property, plant and equipment on our Consolidated Balance Sheet, but excluded from Schedule III as the assets to which this accumulated depreciation relates are not considered real estate assets associated with owned buildings.

(2)Represents the accumulated depreciation of racking as of December 31, 2021 installed in our 1,184 leased facilities, which is included in total accumulated depreciation of property, plant and equipment on our Consolidated Balance Sheet, but excluded from Schedule III, as disclosed in Footnote 1 to Schedule III.

(3)Represents the accumulated depreciation of buildings and building improvements as of December 31, 2021 that are subject to financing leases, which is included in the total accumulated depreciation of property, plant and equipment on our Consolidated Balance Sheet, but excluded from Schedule III, as disclosed in Footnote 1 to Schedule III.

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SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED)

DECEMBER 31, 2021

(Dollars in thousands)

(A)												(B)						(C)						(D)						(E)						(F)
REGION/COUNTRY/ STATE/CAMPUS ADDRESS						FACILITIES**(1)**						ENCUMBRANCES						INITIAL COST TO COMPANY**(1)**						COST CAPITALIZED SUBSEQUENT TO ACQUISITION**(1)(2)**						GROSS AMOUNT CARRIED AT CLOSE OF CURRENT PERIOD**(1)(8)**						ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD**(1)(8)**						DATE OF CONSTRUCTION OR ACQUIRED**(3)**						LIFE ON WHICH DEPRECIATION IN LATEST INCOME STATEMENT IS COMPUTED
North America
United States (Including Puerto Rico)
140 Oxmoor Ct, Birmingham, Alabama						1						$	—					$	1,322					$	978					$	2,300					$	1,252					2001						Up to 40 years
1420 North Fiesta Blvd, Gilbert, Arizona						1						—						1,637						2,777						4,414						2,291						2001						Up to 40 years
4802 East Van Buren, Phoenix, Arizona						1						—						15,599						276,487						292,086						7,309						2019						Up to 40 years
615 North 48th Street, Phoenix, Arizona						1						—						423,107						28,176						451,283						59,325						2018			(5)			Up to 40 years
2955 S. 18th Place, Phoenix, Arizona						1						—						12,178						14,690						26,868						6,956						2007						Up to 40 years
4449 South 36th St, Phoenix, Arizona						1						—						7,305						1,059						8,364						5,355						2012						Up to 40 years
8521 E. Princess Drive, Scottsdale, Arizona						1						—						87,865						2,576						90,441						16,742						2018			(5)			Up to 40 years
600 Burning Tree Rd, Fullerton, California						1						—						4,762						1,911						6,673						3,212						2002						Up to 40 years
21063 Forbes St, Hayward, California						1						—						13,407						378						13,785						3,158						2019			(9)			Up to 40 years
1025 North Highland Ave, Los Angeles, California						1						—						10,168						27,117						37,285						16,371						1988						Up to 40 years
1010 - 1006 North Mansfield, Los Angeles, California						1						—						749						—						749						147						2014						Up to 40 years
1350 West Grand Ave, Oakland, California						1						—						15,172						7,606						22,778						15,728						1997						Up to 40 years
1760 North Saint Thomas Circle, Orange, California						1						—						4,576						510						5,086						2,098						2002						Up to 40 years
1915 South Grand Ave, Santa Ana, California						1						—						3,420						1,305						4,725						2,099						2001						Up to 40 years
2680 Sequoia Dr, South Gate, California						1						—						6,329						2,914						9,243						4,416						2002						Up to 40 years
336 Oyster Point Blvd, South San Francisco, California						1						—						15,100						233						15,333						2,717						2019			(9)			Up to 40 years
25250 South Schulte Rd, Tracy, California						1						—						3,049						1,785						4,834						2,379						2001						Up to 40 years
3576 N. Moline, Aurora, Colorado						1						—						1,583						4,492						6,075						2,239						2001						Up to 40 years
5151 E. 46th Ave, Denver, Colorado						1						—						6,312						724						7,036						1,974						2014						Up to 40 years

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SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED)

DECEMBER 31, 2021

(Dollars in thousands)

(A)												(B)						(C)						(D)						(E)						(F)
REGION/COUNTRY/ STATE/CAMPUS ADDRESS						FACILITIES**(1)**						ENCUMBRANCES						INITIAL COST TO COMPANY**(1)**						COST CAPITALIZED SUBSEQUENT TO ACQUISITION**(1)(2)**						GROSS AMOUNT CARRIED AT CLOSE OF CURRENT PERIOD**(1)(8)**						ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD**(1)(8)**						DATE OF CONSTRUCTION OR ACQUIRED**(3)**						LIFE ON WHICH DEPRECIATION IN LATEST INCOME STATEMENT IS COMPUTED
North America (continued)
United States (Including Puerto Rico (continued)
11333 E 53rd Ave, Denver, Colorado						1						$	—					$	7,403					$	10,348					$	17,751					$	10,571					2001						Up to 40 years
4300 Brighton Boulevard, Denver, Colorado						1						—						116,336						23,590						139,926						18,893						2017						Up to 40 years
20 Eastern Park Rd, East Hartford, Connecticut						1						—						7,417						1,905						9,322						6,549						2002						Up to 40 years
Kennedy Road, Windsor, Connecticut						2						—						10,447						32,111						42,558						23,522						2001						Up to 40 years
150-200 Todds Ln, Wilmington, Delaware						1						—						7,226						1,137						8,363						5,370						2002						Up to 40 years
13280 Vantage Way, Jacksonville, Florida						1						—						1,853						590						2,443						1,085						2001						Up to 40 years
12855 Starkey Rd, Largo, Florida						1						—						3,293						3,005						6,298						3,609						2001						Up to 40 years
7801 Riviera Blvd, Miramar, Florida						1						—						8,250						264						8,514						1,247						2017						Up to 40 years
10002 Satellite Blvd, Orlando, Florida						1						—						1,927						343						2,270						993						2001						Up to 40 years
3501 Electronics Way, West Palm Beach, Florida						1						—						4,201						13,933						18,134						8,252						2001						Up to 40 years
1890 MacArthur Blvd, Atlanta, Georgia						1						—						1,786						825						2,611						1,265						2002						Up to 40 years
3881 Old Gordon Rd, Atlanta, Georgia						1						—						1,185						899						2,084						955						2001						Up to 40 years
5319 Tulane Drive SW, Atlanta, Georgia						1						—						2,808						3,963						6,771						3,975						2002						Up to 40 years
6111 Live Oak Parkway, Norcross, Georgia						1						—						3,542						2,802						6,344						683						2017						Up to 40 years
3150 Nifda Dr, Smyrna, Georgia						1						—						463						779						1,242						795						1990						Up to 40 years
2425 South Halsted St, Chicago, Illinois						1						—						7,470						1,717						9,187						4,694						2006						Up to 40 years
1301 S. Rockwell St, Chicago, Illinois						1						—						7,947						20,032						27,979						17,288						1999						Up to 40 years
2604 West 13th St, Chicago, Illinois						1						$	—					404						2,954						3,358						2,948						2001						Up to 40 years
2211 W. Pershing Rd, Chicago, Illinois						1						—						4,264						14,131						18,395						9,614						2001						Up to 40 years

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IRON MOUNTAIN INCORPORATED

SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED)

DECEMBER 31, 2021

(Dollars in thousands)

(A)												(B)						(C)						(D)						(E)						(F)
REGION/COUNTRY/ STATE/CAMPUS ADDRESS						FACILITIES**(1)**						ENCUMBRANCES						INITIAL COST TO COMPANY**(1)**						COST CAPITALIZED SUBSEQUENT TO ACQUISITION**(1)(2)**						GROSS AMOUNT CARRIED AT CLOSE OF CURRENT PERIOD**(1)(8)**						ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD**(1)(8)**						DATE OF CONSTRUCTION OR ACQUIRED**(3)**						LIFE ON WHICH DEPRECIATION IN LATEST INCOME STATEMENT IS COMPUTED
North America (continued)
United States (Including Puerto Rico) (continued)
2255 Pratt Blvd, Elk Grove, Illinois						1						$	—					$	1,989					$	3,930					$	5,919					$	1,847					2000						Up to 40 years
4175 Chandler Dr Opus No. Corp, Hanover Park, Illinois						1						—						22,048						2,909						24,957						11,051						2014						Up to 40 years
2600 Beverly Drive, Lincoln, Illinois						1						—						1,378						938						2,316						382						2015						Up to 40 years
6090 NE 14th Street, Des Moines, Iowa						1						—						622						511						1,133						478						2003						Up to 40 years
South 7th St, Louisville, Kentucky						4						—						709						14,664						15,373						6,482						Various						Up to 40 years
26 Parkway Drive (fka 133 Pleasant), Scarborough, Maine						1						—						8,337						528						8,865						3,620						2015			(9)			Up to 40 years
8928 McGaw Ct, Columbia, Maryland						1						—						2,198						6,529						8,727						4,220						1999						Up to 40 years
10641 Iron Bridge Rd, Jessup, Maryland						1						—						3,782						1,608						5,390						2,965						2000						Up to 40 years
96 High St, Billerica, Massachusetts						1						—						3,221						3,956						7,177						3,901						1998						Up to 40 years
120 Hampden St, Boston, Massachusetts						1						—						164						939						1,103						609						2002						Up to 40 years
32 George St, Boston, Massachusetts						1						—						1,820						5,442						7,262						5,754						1991						Up to 40 years
14500 Weston Pkwy, Cary, North Carolina						1						—						1,880						2,229						4,109						2,234						1999						Up to 40 years
3435 Sharps Lot Rd, Dighton, Massachusetts						1						—						1,911						797						2,708						2,175						1999						Up to 40 years
77 Constitution Boulevard, Franklin, Massachusetts						1						—						5,413						288						5,701						1,001						2014						Up to 40 years
Bearfoot Road, Northboro, Massachusetts						2						—						55,923						15,151						71,074						44,118						Various						Up to 40 years
6601 Sterling Dr South, Sterling Heights, Michigan						1						—						1,294						1,255						2,549						1,332						2002						Up to 40 years
31155 Wixom Rd, Wixom, Michigan						1						—						4,000						1,509						5,509						3,060						2001						Up to 40 years
3140 Ryder Trail South, Earth City, Missouri						1						—						3,072						3,429						6,501						2,765						2004						Up to 40 years
Leavenworth St/18th St, Omaha, Nebraska						2						—						2,924						18,489						21,413						8,555						Various						Up to 40 years

127			IRON MOUNTAIN 2021 FORM 10-K

Part IV

IRON MOUNTAIN INCORPORATED

SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED)

DECEMBER 31, 2021

(Dollars in thousands)

(A)												(B)						(C)						(D)						(E)						(F)
REGION/COUNTRY/ STATE/CAMPUS ADDRESS						FACILITIES**(1)**						ENCUMBRANCES						INITIAL COST TO COMPANY**(1)**						COST CAPITALIZED SUBSEQUENT TO ACQUISITION**(1)(2)**						GROSS AMOUNT CARRIED AT CLOSE OF CURRENT PERIOD**(1)(8)**						ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD**(1)(8)**						DATE OF CONSTRUCTION OR ACQUIRED**(3)**						LIFE ON WHICH DEPRECIATION IN LATEST INCOME STATEMENT IS COMPUTED
North America (continued)
United States (Including Puerto Rico) (continued)
4105 North Lamb Blvd, Las Vegas, Nevada						1						$	—					$	3,430					$	8,976					$	12,406					$	6,701					2002						Up to 40 years
17 Hydro Plant Rd, Milton, New Hampshire						1						—						6,179						4,499						10,678						7,269						2001						Up to 40 years
3003 Woodbridge Avenue, Edison, New Jersey						1						—						310,404						63,228						373,632						41,572						2018			(5)			Up to 40 years
811 Route 33, Freehold, New Jersey						3						—						38,697						59,867						98,564						59,006						Various						Up to 40 years
51-69 & 77-81 Court St, Newark, New Jersey						1						—						11,734						10,532						22,266						2,899						2015						Up to 40 years
560 Irvine Turner Blvd, Newark, New Jersey						1						—						9,522						2,875						12,397						1,350						2015						Up to 40 years
231 Johnson Ave, Newark, New Jersey						1						—						8,945						2,907						11,852						1,457						2015						Up to 40 years
650 Howard Avenue, Somerset, New Jersey						1						—						3,585						11,892						15,477						7,080						2006						Up to 40 years
100 Bailey Ave, Buffalo, New York						1						—						1,324						11,413						12,737						7,530						1998						Up to 40 years
64 Leone Ln, Chester, New York						1						—						5,086						1,450						6,536						3,740						2000						Up to 40 years
1368 County Rd 8, Farmington, New York						1						—						2,611						4,908						7,519						5,120						1998						Up to 40 years
County Rd 10, Linlithgo, New York						2						—						102						3,249						3,351						1,912						2001						Up to 40 years
37 Hurds Corner Road, Pawling, New York						1						—						4,323						1,371						5,694						2,673						2005						Up to 40 years
Ulster Ave/Route 9W, Port Ewen, New York						3						—						23,137						12,301						35,438						24,492						2001						Up to 40 years
Binnewater Rd, Rosendale, New York						2						—						5,142						11,992						17,134						8,301						Various						Up to 40 years
220 Wavel St, Syracuse, New York						1						—						2,929						2,765						5,694						3,270						1997						Up to 40 years
2235 Cessna Drive, Burlington, North Carolina						1						—						1,602						334						1,936						332						2015						Up to 40 years
826 Church Street, Morrisville, North Carolina						1						—						7,087						266						7,353						1,780						2017						Up to 40 years
1275 East 40th, Cleveland, Ohio						1						—						3,129						606						3,735						2,234						1999						Up to 40 years
7208 Euclid Avenue, Cleveland, Ohio						1						—						3,336						4,140						7,476						3,795						2001						Up to 40 years

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Part IV

IRON MOUNTAIN INCORPORATED

SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED)

DECEMBER 31, 2021

(Dollars in thousands)

(A)												(B)						(C)						(D)						(E)						(F)
REGION/COUNTRY/ STATE/CAMPUS ADDRESS						FACILITIES**(1)**						ENCUMBRANCES						INITIAL COST TO COMPANY**(1)**						COST CAPITALIZED SUBSEQUENT TO ACQUISITION**(1)(2)**						GROSS AMOUNT CARRIED AT CLOSE OF CURRENT PERIOD**(1)(8)**						ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD**(1)(8)**						DATE OF CONSTRUCTION OR ACQUIRED**(3)**						LIFE ON WHICH DEPRECIATION IN LATEST INCOME STATEMENT IS COMPUTED
North America (continued)
United States (Including Puerto Rico) (continued)
4260 Tuller Ridge Rd, Dublin, Ohio						1						$	—					$	1,030					$	1,881					$	2,911					$	1,641					1999						Up to 40 years
3366 South Tech Boulevard, Miamisburg, Ohio						1						—						29,092						1,291						30,383						4,165						2018			(5)			Up to 40 years
7530 N. Leadbetter Road, Portland, Oregon						1						—						5,187						1,874						7,061						4,449						2002						Up to 40 years
Branchton Rd, Boyers, Pennsylvania						2						—						21,166						253,496						274,662						79,855						Various						Up to 40 years
800 Carpenters Crossings, Folcroft, Pennsylvania						1						—						2,457						1,055						3,512						2,257						2000						Up to 40 years
Las Flores Industrial Park, Rio Grande, Puerto Rico						1						—						4,185						3,598						7,783						4,971						2001						Up to 40 years
24 Snake Hill Road, Chepachet, Rhode Island						1						—						2,659						2,254						4,913						3,308						2001						Up to 40 years
1061 Carolina Pines Road, Columbia, South Carolina						1						—						11,776						2,413						14,189						4,189						2016			(9)			Up to 40 years
2301 Prosperity Way, Florence, South Carolina						1						—						2,846						1,287						4,133						1,625						2016			(9)			Up to 40 years
Mitchell Street, Knoxville, Tennessee						2						—						718						4,575						5,293						2,438						Various						Up to 40 years
6005 Dana Way, Nashville, Tennessee						2						—						1,827						3,671						5,498						2,290						2000						Up to 40 years
6600 Metropolis Drive, Austin, Texas						1						—						4,519						454						4,973						1,700						2011						Up to 40 years
Capital Parkway, Carrollton, Texas						3						—						8,299						759						9,058						2,958						2015			(9)			Up to 40 years
1800 Columbian Club Dr, Carrolton, Texas						1						—						19,673						1,746						21,419						10,709						2013						Up to 40 years
1905 John Connally Dr, Carrolton, Texas						1						—						2,174						868						3,042						1,555						2000						Up to 40 years
13425 Branchview Ln, Dallas, Texas						1						—						3,518						3,693						7,211						4,470						2001						Up to 40 years
1819 S. Lamar St, Dallas, Texas						1						—						3,215						1,768						4,983						2,828						2000						Up to 40 years
2000 Robotics Place Suite B, Fort Worth, Texas						1						—						5,328						3,068						8,396						3,378						2002						Up to 40 years
1202 Ave R, Grand Prairie, Texas						1						—						8,354						2,266						10,620						6,548						2003						Up to 40 years

129			IRON MOUNTAIN 2021 FORM 10-K

Part IV

IRON MOUNTAIN INCORPORATED

SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED)

DECEMBER 31, 2021

(Dollars in thousands)

(A)												(B)						(C)						(D)						(E)						(F)
REGION/COUNTRY/ STATE/CAMPUS ADDRESS						FACILITIES**(1)**						ENCUMBRANCES						INITIAL COST TO COMPANY**(1)**						COST CAPITALIZED SUBSEQUENT TO ACQUISITION**(1)(2)**						GROSS AMOUNT CARRIED AT CLOSE OF CURRENT PERIOD**(1)(8)**						ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD**(1)(8)**						DATE OF CONSTRUCTION OR ACQUIRED**(3)**						LIFE ON WHICH DEPRECIATION IN LATEST INCOME STATEMENT IS COMPUTED
North America (continued)
United States (Including Puerto Rico) (continued)
6203 Bingle Rd, Houston, Texas						1						$	—					$	3,188					$	11,719					$	14,907					$	9,488					2001						Up to 40 years
3502 Bissonnet St, Houston, Texas						1						—						7,687						734						8,421						6,228						2002						Up to 40 years
2600 Center Street, Houston, Texas						1						—						2,840						2,619						5,459						2,857						2000						Up to 40 years
5707 Chimney Rock, Houston, Texas						1						—						1,032						1,211						2,243						1,198						2002						Up to 40 years
5249 Glenmont Ave, Houston, Texas						1						—						3,467						2,416						5,883						3,126						2000						Up to 40 years
15333 Hempstead Hwy, Houston, Texas						3						—						6,327						38,154						44,481						16,481						2004						Up to 40 years
5757 Royalton Dr, Houston, Texas						1						—						1,795						1,036						2,831						1,450						2000						Up to 40 years
9601 West Tidwell, Houston, Texas						1						—						1,680						2,408						4,088						1,533						2001						Up to 40 years
7800 Westpark, Houston, Texas						1						—						6,323						1,359						7,682						2,171						2015			(9)			Up to 40 years
1665 S. 5350 West, Salt Lake City, Utah						1						—						6,239						4,321						10,560						6,005						2002						Up to 40 years
11052 Lakeridge Pkwy, Ashland, Virginia						1						—						1,709						1,927						3,636						2,107						1999						Up to 40 years
2301 International Parkway, Fredericksburg, Virginia						1						—						20,980						194						21,174						7,023						2015			(7)			Up to 40 years
11660 Hayden Road, Manassas, Virginia						1						—						104,824						219,296						324,120						31,501						2020						Up to 40 years
4555 Progress Road, Norfolk, Virginia						1						—						6,527						1,903						8,430						3,767						2011						Up to 40 years
3725 Thirlane Rd. N.W., Roanoke, Virginia						1						—						2,577						287						2,864						1,337						2015			(9)			Up to 40 years
7700-7730 Southern Dr, Springfield, Virginia						1						—						14,167						2,830						16,997						10,053						2002						Up to 40 years
22445 Randolph Dr, Sterling, Virginia						1						—						7,598						4,450						12,048						6,643						2005						Up to 40 years
307 South 140th St, Burien, Washington						1						—						2,078						2,405						4,483						2,624						1999						Up to 40 years
8908 W. Hallett Rd, Cheney, Washington						1						—						510						4,281						4,791						2,434						1999						Up to 40 years

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Part IV

IRON MOUNTAIN INCORPORATED

SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED)

DECEMBER 31, 2021

(Dollars in thousands)

(A)												(B)						(C)						(D)						(E)						(F)
REGION/COUNTRY/ STATE/CAMPUS ADDRESS						FACILITIES**(1)**						ENCUMBRANCES						INITIAL COST TO COMPANY**(1)**						COST CAPITALIZED SUBSEQUENT TO ACQUISITION**(1)(2)**						GROSS AMOUNT CARRIED AT CLOSE OF CURRENT PERIOD**(1)(8)**						ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD**(1)(8)**						DATE OF CONSTRUCTION OR ACQUIRED**(3)**						LIFE ON WHICH DEPRECIATION IN LATEST INCOME STATEMENT IS COMPUTED
North America (continued)
United States (Including Puerto Rico) (continued)
6600 Hardeson Rd, Everett, Washington						1						$	—					$	5,399					$	3,476					$	8,875					$	4,006					2002						Up to 40 years
1201 N. 96th St, Seattle, Washington						1						—						4,496						2,655						7,151						3,926						2001						Up to 40 years
4330 South Grove Road, Spokane, Washington						1						—						3,906						880						4,786						748						2015						Up to 40 years
12021 West Bluemound Road, Wauwatosa, Wisconsin						1						—						1,307						2,143						3,450						1,640						1999						Up to 40 years
						138						$	—					$	1,761,530					$	1,420,439					$	3,181,969					$	850,818

131			IRON MOUNTAIN 2021 FORM 10-K

Part IV

IRON MOUNTAIN INCORPORATED

SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED)

DECEMBER 31, 2021

(Dollars in thousands)

(A)						(B)			(C)			(D)			(E)			(F)
REGION/COUNTRY/ STATE/CAMPUS ADDRESS			FACILITIES**(1)**			ENCUMBRANCES			INITIAL COST TO COMPANY**(1)**			COST CAPITALIZED SUBSEQUENT TO ACQUISITION**(1)(2)**			GROSS AMOUNT CARRIED AT CLOSE OF CURRENT PERIOD**(1)(8)**			ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD**(1)(8)**			DATE OF CONSTRUCTION OR ACQUIRED**(3)**						LIFE ON WHICH DEPRECIATION IN LATEST INCOME STATEMENT IS COMPUTED
North America (continued)
Canada
One Command Court, Bedford			1			$	—		$	3,847		$	4,768		$	8,615		$	4,794		2000						Up to 40 years
195 Summerlea Road, Brampton			1			—			5,403			7,123			12,526			6,452			2000						Up to 40 years
10 Tilbury Court, Brampton			1			—			5,007			18,163			23,170			9,865			2000						Up to 40 years
8825 Northbrook Court, Burnaby			1			—			8,091			2,601			10,692			5,330			2001						Up to 40 years
8088 Glenwood Drive, Burnaby			1			—			4,326			7,502			11,828			5,549			2005						Up to 40 years
5811 26th Street S.E., Calgary			1			—			14,658			9,829			24,487			12,767			2000						Up to 40 years
3905-101 Street, Edmonton			1			—			2,020			1,067			3,087			1,786			2000						Up to 40 years
68 Grant Timmins Drive, Kingston			1			—			3,639			790			4,429			587			2016						Up to 40 years
3005 Boul. Jean-Baptiste Deschamps, Lachine			1			—			2,751			831			3,582			1,606			2000						Up to 40 years
1655 Fleetwood, Laval			1			—			8,196			20,519			28,715			14,996			2000						Up to 40 years
4005 Richelieu, Montreal			1			—			1,800			2,702			4,502			2,067			2000						Up to 40 years
1209 Algoma Rd, Ottawa			1			—			1,059			7,210			8,269			4,738			2000						Up to 40 years
1650 Comstock Rd, Ottawa			1			—			7,478			116			7,594			3,074			2017						Up to 40 years
235 Edson Street, Saskatoon			1			—			829			1,748			2,577			1,038			2008						Up to 40 years
640 Coronation Drive, Scarborough			1			—			1,853			1,370			3,223			1,496			2000						Up to 40 years
610 Sprucewood Ave, Windsor			1			—			1,243			742			1,985			869			2007						Up to 40 years
			16			$	—		$	72,200		$	87,081		$	159,281		$	77,014
			154			$	—		$	1,833,730		$	1,507,520		$	3,341,250		$	927,832

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Part IV

IRON MOUNTAIN INCORPORATED

SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED)

DECEMBER 31, 2021

(Dollars in thousands)

(A)						(B)			(C)			(D)			(E)			(F)
REGION/COUNTRY/ STATE/CAMPUS ADDRESS			FACILITIES**(1)**			ENCUMBRANCES			INITIAL COST TO COMPANY**(1)**			COST CAPITALIZED SUBSEQUENT TO ACQUISITION**(1)(2)**			GROSS AMOUNT CARRIED AT CLOSE OF CURRENT PERIOD**(1)(8)**			ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD**(1)(8)**			DATE OF CONSTRUCTION OR ACQUIRED**(3)**						LIFE ON WHICH DEPRECIATION IN LATEST INCOME STATEMENT IS COMPUTED
Europe
Gewerbeparkstr. 3, Vienna, Austria			1			$	—		$	6,542		$	8,234		$	14,776		$	4,788		2010						Up to 40 years
Woluwelaan 147, Diegem, Belgium			1			—			2,541			6,410			8,951			4,922			2003						Up to 40 years
Stupničke Šipkovine 62, Zagreb, Croatia			1			—			1,408			1,517			2,925			221			2003						Up to 40 years
Kratitirion 9 Kokkinotrimithia Industrial District, Nicosia, Cyprus			1			—			3,136			2,723			5,859			807			2003						Up to 40 years
Karyatidon 1, Agios Sylas Industrial Area (3rd), Limassol, Cyprus			1			—			1,935			(23)			1,912			260			2018						Up to 40 years
G2-B, Engineering Square IDG Developer’s Area, 6th Oct City Giza, Egypt			1			—			8,984			224			9,208			86			2021			(7)			Up to 40 years
65 Egerton Road, Birmingham, England			1			—			6,980			2,169			9,149			5,451			2003						Up to 40 years
Otterham Quay Lane, Gillingham, England			9			—			7,418			3,762			11,180			5,951			2004						Up to 40 years
Kemble Industrial Park, Kemble, England			2			—			5,277			7,343			12,620			9,213			2003						Up to 40 years
Gayton Road, Kings Lynn, England			3			—			3,119			1,809			4,928			3,117			2003						Up to 40 years
17 Broadgate, Oldham, England			1			—			4,039			468			4,507			2,631			2008						Up to 40 years
Harpway Lane, Sopley, England			1			—			681			1,509			2,190			1,547			2004						Up to 40 years
Unit 1A Broadmoor Road, Swindom, England			1			—			2,636			555			3,191			1,405			2006						Up to 40 years
Jeumont-Schneider, Champagne Sur Seine, France			3			—			1,750			2,563			4,313			2,543			2003						Up to 40 years
Bat I-VII Rue de Osiers, Coignieres, France			4			—			21,318			(431)			20,887			6,003			2016			(4)			Up to 40 years
26 Rue de I Industrie, Fergersheim, France			1			—			1,322			(14)			1,308			367			2016			(4)			Up to 40 years
Bat A, B, C1, C2, C3 Rue Imperiale, Gue de Longroi, France			1			—			3,390			754			4,144			1,322			2016			(4)			Up to 40 years
Le Petit Courtin Site de Dois, Gueslin, Mingieres, France			1			—			14,141			(44)			14,097			2,876			2016			(4)			Up to 40 years
ZI des Sables, Morangis, France			1			—			12,407			15,637			28,044			20,016			2004						Up to 40 years

133			IRON MOUNTAIN 2021 FORM 10-K

Part IV

IRON MOUNTAIN INCORPORATED

SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED)

DECEMBER 31, 2021

(Dollars in thousands)

(A)						(B)			(C)			(D)			(E)			(F)
REGION/COUNTRY/ STATE/CAMPUS ADDRESS			FACILITIES**(1)**			ENCUMBRANCES			INITIAL COST TO COMPANY**(1)**			COST CAPITALIZED SUBSEQUENT TO ACQUISITION**(1)(2)**			GROSS AMOUNT CARRIED AT CLOSE OF CURRENT PERIOD**(1)(8)**			ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD**(1)(8)**			DATE OF CONSTRUCTION OR ACQUIRED**(3)**						LIFE ON WHICH DEPRECIATION IN LATEST INCOME STATEMENT IS COMPUTED
Europe (continued)
45 Rue de Savoie, Manissieux, Saint Priest, France			$	1		$	—		$	5,546		$	(103)		$	5,443		$	1,201		2016			(4)			Up to 40 years
Heinrich Lanz Alee 47, Frankfurt, Germany			1			—			80,591			(2,079)			78,512			—			2021			(8)			Up to 40 years
Gutenbergstrabe 55, Hamburg, Germany			1			—			4,022			803			4,825			1,519			2016			(4)			Up to 40 years
Brommer Weg 1, Wipshausen, Germany			1			—			3,220			1,855			5,075			3,564			2006						Up to 40 years
Warehouse and Offices 4 Springhill, Cork, Ireland			1			—			9,040			2,666			11,706			5,555			2014						Up to 40 years
17 Crag Terrace, Dublin, Ireland			1			—			2,818			783			3,601			1,531			2001						Up to 40 years
Damastown Industrial Park, Dublin, Ireland			1			—			16,034			7,399			23,433			9,453			2012						Up to 40 years
Al Qastal, Amman, Jordan			1			—			1,431			463			1,894			40			2021			(7)			Up to 40 years
Vareseweg 130, Rotterdam, The Netherlands			1			—			1,357			1,049			2,406			1,804			2015			(9)			Up to 40 years
Howemoss Drive, Aberdeen, Scotland			2			—			6,970			6,008			12,978			5,878			Various						Up to 40 years
Traquair Road, Innerleithen, Scotland			1			—			113			2,235			2,348			1,305			2004						Up to 40 years
Nettlehill Road, Houston Industrial Estate, Livingston, Scotland			1			—			11,517			28,248			39,765			20,910			2001						Up to 40 years
Av Madrid s/n Poligono Industrial Matillas, Alcala de Henares, Spain			1			—			186			236			422			347			2014						Up to 40 years
Calle Bronce, 37, Chiloeches, Spain			1			—			11,011			3,696			14,707			3,814			2010						Up to 40 years
Ctra M.118 , Km.3 Parcela 3, Madrid, Spain			1			—			3,981			5,504			9,485			6,974			2001						Up to 40 years
Abanto Ciervava, Spain			2			—			1,053			(68)			985			483			Various						Up to 40 years
Plot No. S20704, Jebel Ali Free Zone Authority, United Arab Emirates			1			—			29,300			2,194			31,494			439			2021			(7)			Up to 40 years
			54			$	—		$	297,214		$	116,054		$	413,268		$	138,343

			IRON MOUNTAIN 2021 FORM 10-K			134

Part IV

IRON MOUNTAIN INCORPORATED

SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED)

DECEMBER 31, 2021

(Dollars in thousands)

(A)						(B)			(C)			(D)			(E)			(F)
REGION/COUNTRY/ STATE/CAMPUS ADDRESS			FACILITIES**(1)**			ENCUMBRANCES			INITIAL COST TO COMPANY**(1)**			COST CAPITALIZED SUBSEQUENT TO ACQUISITION**(1)(2)**			GROSS AMOUNT CARRIED AT CLOSE OF CURRENT PERIOD**(1)(8)**			ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD**(1)(8)**			DATE OF CONSTRUCTION OR ACQUIRED**(3)**						LIFE ON WHICH DEPRECIATION IN LATEST INCOME STATEMENT IS COMPUTED
Latin America
Amancio Alcorta 2396, Buenos Aires, Argentina			2			$	—		$	655		$	872		$	1,527		$	410		Various						Up to 40 years
Azara 1245, Buenos Aires, Argentina			1			—			166			(164)			2			—			1998						Up to 40 years
Spegazzini, Ezeiza Buenos Aires, Argentina			1			—			12,773			(10,726)			2,047			497			2012						Up to 40 years
Av Ernest de Moraes 815, Bairro Fim do Campo, Jarinu Brazil			1			—			12,562			(5,091)			7,471			1,726			2016			(4)			Up to 40 years
Rua Peri 80, Jundiai, Brazil			1			—			8,894			(3,729)			5,165			1,297			2016			(4)			Up to 40 years
Francisco de Souza e Melo, Rio de Janerio, Brazil			3			—			1,868			7,056			8,924			3,310			Various						Up to 40 years
Hortolandia, Sao Paulo, Brazil			1						24,078			(5,747)			18,331			3,639
El Taqueral 99, Santiago, Chile			10			—			2,629			28,322			30,951			11,863			Various						Up to 40 years
Panamericana Norte 18900, Santiago, Chile			7			—			4,001			15,776			19,777			7,382			Various						Up to 40 years
Avenida Prolongacion del Colli 1104, Guadalajara, Mexico			1			—			374			1,291			1,665			1,131			2002						Up to 40 years
Privada Las Flores No. 25 (G3), Guadalajara, Mexico			1			—			905			1,160			2,065			1,049			2004						Up to 40 years
Tula KM Parque de Las, Huehuetoca, Mexico			2			—			19,937			(298)			19,639			4,468			2016			(4)			Up to 40 years
Carretera Pesqueria Km2.5(M3), Monterrey, Mexico			2			—			3,537			4,400			7,937			3,889			2004						Up to 40 years
Lote 2, Manzana A, (T2& T3), Toluca, Mexico			1			—			2,204			4,436			6,640			5,285			2002						Up to 40 years
Prolongacion de la Calle 7 (T4), Toluca, Mexico			1			—			7,544			14,524			22,068			7,970			2007						Up to 40 years
Panamericana Sur, KM 57.5, Lima, Peru			7			—			1,549			462			2,011			1,105			Various						Up to 40 years
Av. Elmer Faucett 3462, Lima, Peru			2			—			4,112			4,161			8,273			4,239			Various						Up to 40 years
Calle Los Claveles-Seccion 3, Lima, Peru			1			—			8,179			26,235			34,414			10,044			2010						Up to 40 years
			45			$	—		$	115,967		$	82,940		$	198,907		$	69,304

135			IRON MOUNTAIN 2021 FORM 10-K

Part IV

IRON MOUNTAIN INCORPORATED

SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED)

DECEMBER 31, 2021

(Dollars in thousands)

(A)						(B)			(C)			(D)			(E)			(F)
REGION/COUNTRY/ STATE/CAMPUS ADDRESS			FACILITIES**(1)**			ENCUMBRANCES			INITIAL COST TO COMPANY**(1)**			COST CAPITALIZED SUBSEQUENT TO ACQUISITION**(1)(2)**			GROSS AMOUNT CARRIED AT CLOSE OF CURRENT PERIOD**(1)(8)**			ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD**(1)(8)**			DATE OF CONSTRUCTION OR ACQUIRED**(3)**						LIFE ON WHICH DEPRECIATION IN LATEST INCOME STATEMENT IS COMPUTED
Asia
Warehouse No 4, Shanghai, China			1			$	—		$	1,530		$	881		$	2,411		$	567		2013						Up to 40 years
Jalan Karanggan Muda Raya No 59, Bogor Indonesia			1			—			7,897			5,142			13,039			2,999			2017						Up to 40 years
Jl. Amd Projakal KM 5.5 Rt 46, Kel. Graha Indah, Kec. Balikpapan Utara, Indonesia			1			—			125			—			125			5			2021						Up to 40 years
1 Serangoon North Avenue 6, Singapore			1			—			58,637			52,044			110,681			10,931			2018			(9)			Up to 40 years
2 Yung Ho Road, Singapore			1			—			10,395			1,780			12,175			2,884			2016			(4)			Up to 40 years
26 Chin Bee Drive, Singapore			1			—			15,699			2,655			18,354			2,279			2016			(4)			Up to 40 years
IC1 69 Moo 2, Soi Wat Namdaeng, Bangkok, Thailand			2			—			13,226			1,445			14,671			4,651			2016			(4)			Up to 40 years
			8			$	—		$	107,509		$	63,947		$	171,456		$	24,316
Australia
8 Whitestone Drive, Austins Ferry, Australia			1			—			681			2,646			3,327			559			2012						Up to 40 years
6 Norwich Street, South Launceston, Australia			1			—			1,090			(47)			1,043			136			2015						Up to 40 years
			2			$	—		$	1,771		$	2,599		$	4,370		$	695
Total			263			$	—		$	2,356,191		$	1,773,060		$	4,129,251		$	1,160,490

(1)The above information only includes the real estate facilities that are owned. The gross cost includes the cost for land, land improvements, buildings, building improvements and racking. The listing does not reflect the 1,184 leased facilities in our real estate portfolio. In addition, the above information does not include any value for financing leases for property that is classified as land, buildings and building improvements in our consolidated financial statements.

(2)Amount includes cumulative impact of foreign currency translation fluctuations.

(3)Date of construction or acquired represents the date we constructed the facility or acquired the facility through purchase or acquisition.

(4)Property was acquired in connection with our acquisition of Recall Holdings Limited.

(5)Property was acquired in connection with our acquisition of IO Data Centers, LLC.

(6)Property was acquired in connection with our acquisition of Credit Suisse International and Credit Suisse AG.

(7)Property was acquired in connection with our acquisition of Information Fort, LLC.

(8)Property was acquired in connection with the Frankfurt data center acquisition.

(9)This date represents the date the categorization of the property was changed from a leased facility to an owned facility.

			IRON MOUNTAIN 2021 FORM 10-K			136

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SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED)

DECEMBER 31, 2021

(Dollars in thousands)

(8)The following tables present the changes in gross carrying amount of real estate owned and accumulated depreciation for the years ended December 31, 2021 and 2020:

						YEAR ENDED DECEMBER 31,
GROSS CARRYING AMOUNT OF REAL ESTATE						2021						2020
Gross amount at beginning of period						$	3,830,489					$	3,856,515
Additions during period:
Acquisitions						120,307						—
Discretionary capital projects						386,752						157,239
Other adjustments(1)						—						66,978
Foreign currency translation fluctuations						(51,363)						10,198
						455,696						234,415
Deductions during period:
Cost of real estate sold, disposed or written-down						(119,154)						(178,869)
Other adjustments(2)						(37,780)						(81,572)
						(156,934)						(260,441)
Gross amount at end of period						$	4,129,251					$	3,830,489

(1)For the year ended December 31, 2020, this includes previously recorded construction in progress, not classified as owned real estate at December 31, 2019.

(2)For the years ended December 31, 2021 and 2020, this includes the cost of racking associated with the facilities sold as part of the sale-leaseback transactions.

						YEAR ENDED DECEMBER 31,
ACCUMULATED DEPRECIATION						2021						2020
Gross amount of accumulated depreciation at beginning of period						$	1,097,616					$	1,072,013
Additions during period:
Depreciation						147,134						123,447
Foreign currency translation fluctuations						(15,135)						8,590
						131,999						132,037
Deductions during period:
Amount of accumulated depreciation for real estate assets sold, disposed or written-down						(41,376)						(54,978)
Other adjustments(1)						(27,749)						(51,456)
						(69,125)						(106,434)
Gross amount of end of period						$	1,160,490					$	1,097,616

(1)For the years ended December 31, 2021 and 2020, this includes the accumulated depreciation of racking associated with the facilities sold as part of the sale-leaseback transactions.

The aggregate cost of our real estate assets for federal tax purposes at December 31, 2021 was approximately $3,910,000.