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, 2022 and 2021			70
Consolidated Statements of Operations, Years Ended December 31, 2022, 2021 and 2020			71
Consolidated Statements of Comprehensive Income (Loss), Years Ended December 31, 2022, 2021 and 2020			72
Consolidated Statements of Equity, Years Ended December 31, 2022, 2021 and 2020			73
Consolidated Statements of Cash Flows, Years Ended December 31, 2022, 2021 and 2020			74
Notes to Consolidated Financial Statements			75
Financial Statement Schedule III—Schedule of Real Estate and Accumulated Depreciation			129

*(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.

66			IRON MOUNTAIN 2022 FORM 10-K

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, 2022 and 2021, 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, 2022, 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, 2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2022, 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, 2022, 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 23, 2023, 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 MATTERS

The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate 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 matters below, providing a separate opinion on the critical audit matters or on the accounts or disclosures to which they relate.

			IRON MOUNTAIN 2022 FORM 10-K			67

Part IV

GOODWILL - GLOBAL DATA CENTER AND ASSET LIFECYCLE MANAGEMENT REPORTING UNITS - REFER TO NOTE 2.L. 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 Company determined the fair value of the Asset Lifecycle Management reporting unit using the Discounted Cash Flow Model. 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 balances allocated to the Global Data Center and Asset Lifecycle Management reporting units were $408 million and $617 million, respectively, as of October 1, 2022 (goodwill impairment testing date). The fair value of both the Global Data Center and Asset Lifecycle Management reporting units exceeded its respective carrying value as of the measurement date and, therefore, no impairment was recognized.

The fair value exceeded the carrying value of the Global Data Center and Asset Lifecycle Management reporting units by less than 30%, 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 "Projected Cash Flows"), the selection of discount rates, and Adjusted EBITDA multiples for these reporting units 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 Projected Cash Flows 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 for the Global Data Center reporting unit.

• We tested the effectiveness of controls over the evaluation of goodwill for impairment, including those over the Projected Cash Flows and discount rates and, additionally, for the Global Data Center reporting unit, the selection of the Adjusted EBITDA multiples.

ACQUISITIONS - ITRENEW BUSINESS - SUPPLIER RELATIONSHIP INTANGIBLE ASSET-REFER TO NOTE 3 TO THE FINANCIAL STATEMENTS

CRITICAL AUDIT MATTER DESCRIPTION

The Company completed the acquisition of 80% of the ITRenew business for $725 million on January 25, 2022. The acquisition included a deferred purchase obligation for the Company to acquire the remaining ownership percentage based on achievement of certain performance targets. The Company determined that the fair value of the deferred purchase obligation was $275 million. The Company accounted for the acquisition under the acquisition method of accounting for business combinations. Accordingly, the purchase price was allocated to the assets acquired and liabilities assumed based on their respective fair values, including a supplier relationship intangible asset of $472 million. Management estimated the fair value of the supplier relationship intangible asset using the multi-period excess earnings method, which is a specific discounted cash flow method. The fair value determination of the supplier relationship intangible asset required management to make significant estimates and assumptions related to future cash flows and the selection of the discount rate.

68			IRON MOUNTAIN 2022 FORM 10-K

Part IV

We identified the supplier relationship intangible asset for ITRenew business as a critical audit matter because of the significant estimates and assumptions management made to determine the fair value of the asset. This required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists, when performing audit procedures to evaluate the reasonableness of management’s forecasts of future cash flows and the selection of the discount rate for the supplier relationship intangible asset.

HOW THE CRITICAL AUDIT MATTER WAS ADDRESSED IN THE AUDIT

Our audit procedures related to the forecasts of future cash flows and the selection of the discount rate for the supplier relationship intangible asset included the following, among others:

• We assessed the reasonableness of management’s forecasts of future cash flows by comparing the projections to historical results and certain external market information.

• With the assistance of our fair value specialists, we evaluated the reasonableness of the (1) valuation methodology and (2) discount rate by:

◦Testing the source information underlying the determination of the discount rate and testing the mathematical accuracy of the calculation.

◦Developing a range of independent estimates and comparing those to the discount rate selected by management.

• We evaluated whether the estimated future cash flows were consistent with evidence obtained in other areas of the audit.

• We tested the effectiveness of controls over the valuation of the supplier relationship intangible asset, including management’s controls over forecasts of future cash flows and selection of the discount rate.

/s/ DELOITTE & TOUCHE LLP

Boston, Massachusetts

February 23, 2023

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

			IRON MOUNTAIN 2022 FORM 10-K			69

Part IV

IRON MOUNTAIN INCORPORATED

CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

			DECEMBER 31,
			2022						2021
ASSETS
Current Assets:
Cash and cash equivalents			$	141,797					$	255,828
Accounts receivable (less allowances of $54,143 and $62,009 as of December 31, 2022 and 2021, respectively)			1,174,915						961,419
Prepaid expenses and other			230,433						224,020
Total Current Assets			1,547,145						1,441,267
Property, plant and equipment			9,025,765						8,647,303
Less—Accumulated depreciation			(3,910,321)						(3,979,159)
Property, Plant and Equipment, net			5,115,444						4,668,144
Other Assets, Net:
Goodwill			4,882,734						4,463,531
Customer and supplier relationships and other intangible assets			1,423,145						1,181,043
Operating lease right-of-use assets			2,583,704						2,314,422
Other			588,342						381,624
Total Other Assets, Net			9,477,925						8,340,620
Total Assets			$	16,140,514					$	14,450,031
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of long-term debt			$	87,546					$	309,428
Accounts payable			469,198						369,145
Accrued expenses and other current liabilities (includes current portion of operating lease liabilities)			1,031,910						1,032,537
Deferred revenue			328,910						307,470
Total Current Liabilities			1,917,564						2,018,580
Long-term Debt, net of current portion			10,481,449						8,962,513
Long-term Operating Lease Liabilities, net of current portion			2,429,167						2,171,472
Other Long-term Liabilities			317,376						144,053
Deferred Income Taxes			263,005						223,934
Commitments and Contingencies
Redeemable Noncontrolling Interests			95,160						72,411
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 290,830,296 shares and 289,757,061 shares as of December 31, 2022 and 2021, respectively)			2,908						2,898
Additional paid-in capital			4,468,035						4,412,553
(Distributions in excess of earnings) Earnings in excess of distributions			(3,392,272)						(3,221,152)
Accumulated other comprehensive items, net			(442,003)						(338,347)
Total Iron Mountain Incorporated Stockholders’ Equity			636,668						855,952
Noncontrolling Interests			125						1,116
Total Equity			636,793						857,068
Total Liabilities and Equity			$	16,140,514					$	14,450,031

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

70			IRON MOUNTAIN 2022 FORM 10-K

Part IV

IRON MOUNTAIN INCORPORATED

CONSOLIDATED STATEMENTS OF OPERATIONS

(IN THOUSANDS, EXCEPT PER SHARE DATA)

			YEAR ENDED DECEMBER 31,
			2022						2021						2020
Revenues:
Storage rental			$	3,034,023					$	2,870,119					$	2,754,091
Service			2,069,551						1,621,412						1,393,179
Total Revenues			5,103,574						4,491,531						4,147,270
Operating Expenses:
Cost of sales (excluding depreciation and amortization)			2,189,120						1,887,229						1,757,342
Selling, general and administrative			1,140,577						1,022,559						949,215
Depreciation and amortization			727,595						680,422						652,069
Acquisition and Integration Costs			47,746						12,764						—
Restructuring and other transformation			41,933						206,426						194,396
Intangible impairments			—						—						23,000
(Gain) Loss on disposal/write-down of property, plant and equipment, net			(93,268)						(172,041)						(363,537)
Total Operating Expenses			4,053,703						3,637,359						3,212,485
Operating Income (Loss)			1,049,871						854,172						934,785
Interest Expense, Net (includes Interest Income of $8,276, $7,341 and $8,312 in 2022, 2021 and 2020, respectively)			488,014						417,961						418,535
Other (Income) Expense, Net			(69,781)						(192,804)						143,545
Net Income (Loss) Before Provision (Benefit) for Income Taxes			631,638						629,015						372,705
Provision (Benefit) for Income Taxes			69,489						176,290						29,609
Net Income (Loss)			562,149						452,725						343,096
Less: Net Income (Loss) Attributable to Noncontrolling Interests			5,168						2,506						403
Net Income (Loss) Attributable to Iron Mountain Incorporated			$	556,981					$	450,219					$	342,693
Earnings (Losses) Per Share Attributable to Iron Mountain Incorporated:
Basic			$	1.92					$	1.56					$	1.19
Diluted			$	1.90					$	1.55					$	1.19
Weighted Average Common Shares Outstanding:
Basic			290,812						289,457						288,183
Diluted			292,444						290,975						288,643

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

			IRON MOUNTAIN 2022 FORM 10-K			71

Part IV

IRON MOUNTAIN INCORPORATED

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(IN THOUSANDS)

			YEAR ENDED DECEMBER 31,
			2022						2021						2020
Net Income (Loss)			$	562,149					$	452,725					$	343,096
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustment			(113,966)						(136,410)						45,779
Change in Fair Value of Derivative Instruments			9,829						52,380						(39,947)
Total Other Comprehensive (Loss) Income			(104,137)						(84,030)						5,832
Comprehensive Income (Loss)			458,012						368,695						348,928
Comprehensive Income (Loss) Attributable to Noncontrolling Interests			4,687						930						(453)
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated			$	453,325					$	367,765					$	349,381

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

72			IRON MOUNTAIN 2022 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						(DISTRIBUTIONS IN EXCESS OF EARNINGS) EARNINGS IN EXCESS OF DISTRIBUTIONS						ACCUMULATED OTHER COMPREHENSIVE ITEMS, NET						NONCONTROLLING INTERESTS									REDEEMABLE NONCONTROLLING INTERESTS
			TOTAL						SHARES						AMOUNTS
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 to 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 to 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
Issuance and net settlement of shares under employee stock purchase plan and option plans and stock-based compensation			52,012						1,073,235						10						52,002						—						—						—									—
Changes in equity related to noncontrolling interests			9,734						—						—						6,099						—						—						3,635									(8,264)
Parent cash dividends declared			(728,101)						—						—						—						(728,101)						—						—									—
Foreign currency translation adjustment			(114,079)						—						—						—						—						(113,485)						(594)									113
Change in fair value of derivative instruments			9,829						—						—						—						—						9,829						—									—
Net income (loss)			557,343						—						—						—						556,981						—						362									4,806
Noncontrolling interests equity contributions and related costs			(2,494)						—						—						(2,619)						—						—						125									29,047
Noncontrolling interests dividends			—						—						—						—						—						—						—									(2,953)
Redemption of noncontrolling interests			(4,519)						—						—						—						—						—						(4,519)									—
Balance, December 31, 2022			$	636,793					290,830,296						$	2,908					$	4,468,035					$	(3,392,272)					$	(442,003)					$	125								$	95,160

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

			IRON MOUNTAIN 2022 FORM 10-K			73

Part IV

IRON MOUNTAIN INCORPORATED

CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS)

			YEAR ENDED DECEMBER 31,
			2022						2021						2020
Cash Flows from Operating Activities:
Net income (loss)			$	562,149					$	452,725					$	343,096
Adjustments to reconcile net income (loss) to cash flows from operating activities:
Depreciation			478,984						465,072						447,562
Amortization (includes amortization of deferred financing costs and discounts of $18,044, $16,548 and $17,376 in 2022, 2021 and 2020, respectively)			266,655						231,898						221,883
Intangible impairments			—						—						23,000
Revenue reduction associated with amortization of customer inducements and data center above- and below-market leases			8,119						8,852						9,878
Stock-based compensation expense			56,861						61,001						37,674
(Benefit) provision for deferred income taxes			(55,920)						28,703						(12,986)
Loss on early extinguishment of debt			671						—						68,300
(Gain) loss on disposal/write-down of property, plant and equipment, net			(93,268)						(172,041)						(363,537)
Loss (gain) on divestments and deconsolidations			105,825						(178,983)						—
Gain associated with the remeasurement of the Deferred Purchase Obligation			(93,600)						—						—
Gain associated with Clutter Transaction			(35,821)						—						—
Foreign currency transactions and other, net			(20,524)						(6,656)						78,437
(Increase) decrease in assets			(224,641)						(174,206)						(15,443)
(Decrease) increase in liabilities			(27,795)						42,537						149,793
Cash Flows from Operating Activities			927,695						758,902						987,657
Cash Flows from Investing Activities:
Capital expenditures			(875,378)						(611,082)						(438,263)
Cash paid for acquisitions, net of cash acquired			(803,690)						(203,998)						(118,581)
Acquisition of customer relationships			(2,143)						(5,892)						(4,346)
Customer inducements			(6,062)						(7,402)						(10,644)
Contract fulfillment costs			(70,336)						(58,524)						(60,020)
Net proceeds from IPM Divestment			—						213,878						—
Investments in joint ventures and other investments			(73,233)						(78,623)						(18,250)
Proceeds from sales of property and equipment and other, net			170,419						278,330						564,664
Cash Flows from Investing Activities			(1,660,423)						(473,313)						(85,440)
Cash Flows from Financing Activities:
Repayment of revolving credit facility, term loan facilities and other debt			(11,593,452)						(5,164,483)						(8,604,394)
Proceeds from revolving credit facility, term loan facilities and other debt			12,949,766						4,972,214						7,939,458
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
Debt financing and equity contribution from noncontrolling interests			29,172						—						—
Debt repayment and equity distribution to noncontrolling interests			(2,953)						(2,450)						(2,765)
Repurchase of noncontrolling interest			(4,519)						(75,000)						—
Parent cash dividends			(724,388)						(718,340)						(716,290)
Net (payments) proceeds associated with employee stock-based awards			(4,849)						25,860						321
Other, net			(9,570)						3,581						(25,475)
Cash Flows from Financing Activities			639,207						(220,806)						(886,699)
Effect of Exchange Rates on Cash and Cash Equivalents			(20,510)						(14,018)						(4,010)
(Decrease) increase in Cash and Cash Equivalents			(114,031)						50,765						11,508
Cash and Cash Equivalents, Beginning of Year			255,828						205,063						193,555
Cash and Cash Equivalents, End of Year			$	141,797					$	255,828					$	205,063
Supplemental Information:
Cash Paid for Interest			$	482,673					$	428,111					$	390,332
Cash Paid for Income Taxes, Net			$	99,631					$	130,292					$	43,468
Non-Cash Investing and Financing Activities:
Financing Leases			$	49,836					$	50,552					$	55,782
Accrued Capital Expenditures			$	172,589					$	88,210					$	91,528
Deferred Purchase Obligations			$	193,033					$	—					$	—
Dividends Payable			$	194,272					$	190,559					$	187,867

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

74			IRON MOUNTAIN 2022 FORM 10-K

Part IV

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2022

(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 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. Our asset lifecycle management ("ALM") business allows us to provide end-to-end asset lifecycle services for hyperscale, corporate data center and corporate end-user device assets.

In September 2022, we announced a global program designed to accelerate the growth of our business ("Project Matterhorn"). Project Matterhorn will focus on the formation of a solution-based sales approach that is designed to allow us to optimize our shared services and best practices to better serve our customers’ needs. We will be investing to accelerate growth and to capture a greater share of the large, global addressable markets in which we operate. 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. The accompanying financial statements include the results of those entities over which we have a controlling financial interest and we are deemed to be the primary beneficiary. 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.r.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

D. CASH AND CASH EQUIVALENTS

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. 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. 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, 2022, 2021 and 2020, 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.

The rollforward of the 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
2022						$	62,009					$	62,891					$	13,666					$	(84,423)					$	54,143
2021						56,981						47,931						26,896						(69,799)						62,009
2020						42,856						55,118						34,411						(75,404)						56,981

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

F. INVENTORY

Inventory is stated at the lower of cost or net realizable value, based on a first-in, first-out methodology. Our inventory primarily consists of IT-related assets including memory, central processing units, hard drives, adaptors and networking. All of our inventory is considered finished goods. Inventory is included as a component of Prepaid expenses and other in our Consolidated Balance Sheets. At December 31, 2022, we have inventory of approximately $11,726, net of related reserves for obsolete, excess and slow-moving inventory, related to our ALM business. We had no inventory as of December 31, 2021.

G. 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, 2022 and 2021 related to cash and cash equivalents held in money market funds. 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.p.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

H. PREPAID EXPENSES AND ACCRUED EXPENSES

Prepaid expenses totaled $114,130 and $109,478 as of December 31, 2022 and 2021, respectively. There were no other items greater than 5% of total current assets included within Prepaid expenses and other as of December 31, 2022 and 2021.

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						2022						2021
Interest						$	128,272					$	124,764
Dividends						194,272						190,559
Operating lease liabilities						288,738						259,597
Other						420,628						457,617
Accrued expenses and other current liabilities						$	1,031,910					$	1,032,537

I. 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

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

						DECEMBER 31,
DESCRIPTION						2022						2021
Land						$	486,715					$	372,411
Buildings and building improvements						3,336,778						3,391,143
Leasehold improvements						1,079,419						1,054,757
Racking						2,058,054						2,075,473
Warehouse equipment/vehicles						493,128						494,464
Furniture and fixtures						49,610						50,692
Computer hardware and software						585,792						823,649
Construction in progress						936,269						384,714
Property, plant and equipment						$	9,025,765					$	8,647,303

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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

CAPITALIZED INTEREST

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, 2022, 2021 and 2020, capitalized interest is as follows:

						YEAR ENDED DECEMBER 31,
						2022						2021						2020
Capitalized interest						$	14,078					$	12,673					$	14,321

INTERNAL USE SOFTWARE

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, 2022, 2021 and 2020, capitalized costs associated with the development of internal use computer software projects are as follows:

			YEAR ENDED DECEMBER 31,
			2022						2021						2020
Capitalized costs associated with the development of internal use computer software projects			$	44,152					$	48,557					$	38,329

ASSET RETIREMENT OBLIGATIONS

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, 2022 and 2021 were $36,119 and $36,493, respectively, and are included in Other Long-term Liabilities in our Consolidated Balance Sheets.

J. 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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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 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.

Operating and financing lease right-of-use assets and lease liabilities as of December 31, 2022 and 2021 are as follows:

						DECEMBER 31,
DESCRIPTION						2022						2021
Assets:
Operating lease right-of-use assets(1)						$	2,583,704					$	2,314,422
Financing lease right-of-use assets, net of accumulated depreciation(2)(3)						251,690						298,049
Liabilities:
Current
Operating lease liabilities						$	288,738					$	259,597
Financing lease liabilities(3)						43,857						41,168
Long-term
Operating lease liabilities						$	2,429,167					$	2,171,472
Financing lease liabilities(3)						289,048						315,561

(1)At December 31, 2022 and 2021, 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, 2022, these assets are comprised of approximately 64% real estate related assets and 36% non-real estate related assets. At December 31, 2021, these assets are comprised of approximately 69% real estate related assets and 31% 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.

The components of the lease expense for the years ended December 31, 2022, 2021 and 2020 are as follows:

						YEAR ENDED DECEMBER 31,
DESCRIPTION						2022						2021						2020
Operating lease cost(1)						$	574,115					$	545,097					$	499,464
Financing lease cost:
Depreciation of financing lease right-of-use assets						$	42,708					$	50,970					$	51,629
Interest expense for financing lease liabilities						17,329						19,808						19,942

(1)Operating lease cost, the majority of which is included in Cost of sales, includes variable lease costs of $119,184, $111,949 and $111,501 for the years ended December 31, 2022, 2021 and 2020, respectively.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Weighted average remaining lease terms and discount rates as of December 31, 2022 and 2021 are as follows:

			DECEMBER 31, 2022												DECEMBER 31, 2021
			OPERATING LEASES						FINANCING LEASES						OPERATING LEASES						FINANCING LEASES
Remaining Lease Term			11.3 years						10.6 years						10.9 years						10.9 years
Discount Rate			6.4		%				5.8		%				6.6		%				5.9		%

The estimated minimum future lease payments (receipts) as of December 31, 2022 are as follows:

YEAR						OPERATING LEASES**(1)**						SUBLEASE INCOME						FINANCING LEASES**(1)**
2023						$	435,386					$	(9,499)					$	52,340
2024						417,058						(5,766)						46,244
2025						392,117						(3,243)						119,130
2026						360,684						(2,528)						31,232
2027						335,269						(3,521)						15,778
Thereafter						1,962,941						—						144,701
Total minimum lease payments (receipts)						3,903,455						$	(24,557)					409,425
Less amounts representing interest or imputed interest						1,185,550												76,520
Present value of lease obligations						$	2,717,905											$	332,905

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

At December 31, 2022, we have 10 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 $270,023 and have lease terms that range from 10 to 15 years. Each of these leases is expected to commence during 2023.

Other information: Supplemental cash flow information relating to our leases for the years ended December 31, 2022, 2021 and 2020 is as follows:

						YEAR ENDED DECEMBER 31,
CASH PAID FOR AMOUNTS INCLUDED IN MEASUREMENT OF LEASE LIABILITIES:						2022						2021						2020
Operating cash flows used in operating leases						$	409,163					$	392,987					$	360,088
Operating cash flows used in financing leases (interest)						17,329						19,808						19,942
Financing cash flows used in financing leases						44,869						46,118						47,829
NON-CASH ITEMS:
Operating lease modifications and reassessments						$	179,094					$	144,310					$	143,382
New operating leases (including acquisitions and sale-leaseback transactions)						540,830						282,490						370,011

K. LONG-LIVED ASSETS

We review long-lived 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, 2022

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Gain on disposal/write-down of property, plant and equipment, net for the years ended December 31, 2022, 2021 and 2020 is as follows:

			YEAR ENDED DECEMBER 31,
			2022			2021			2020
Gain on disposal/write-down of property, plant and equipment, net			$	93,268		$	172,041		$	363,537
The gains primarily consist of(1):			•Gains associated with sale and sale-leaseback transactions of approximately $94,500, of which (i) approximately $49,000 relates to sale and sale-leaseback transactions of 11 facilities and parcels of land in the United States during the second quarter of 2022, (ii) approximately $17,000 relates to sale-leaseback transactions of two facilities in the United States and one in Canada during the third quarter of 2022 and (iii) approximately $28,500 relates to sale and sale-leaseback transactions of 12 facilities and one parcel of land in the United States and one facility in the United Kingdom during the fourth quarter of 2022.			•Gains associated with sale and sale-leaseback transactions of approximately $164,000, of which (i) approximately $127,400 relates to sale-leaseback transactions of five facilities in the United Kingdom during the second quarter of 2021 and (ii) approximately $36,600 relates to 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 sale-leaseback transactions of 14 facilities in the United States during the fourth quarter of 2020 and (ii) approximately $76,400 relates to 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 5).

(1) The gains recognized during the years ended December 31, 2022, 2021 and 2020 are the result of our program to monetize a small portion of our industrial assets through sale and sale-leaseback transactions. The terms for these leases are consistent with the terms of our lease portfolio, which are disclosed in Note 2.j.

L. 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 test goodwill annually on October 1, and more frequently if impairment indicators arise that would require an interim test. The following is a discussion regarding (i) interim goodwill impairment review for our Fine Arts reporting unit during the first quarter of 2020, (ii) the reporting units at which level we tested goodwill for impairment as of October 1, 2021 and the composition of these reporting units at December 31, 2021 (including the amount of goodwill associated with each reporting unit), (iii) interim reporting unit changes and goodwill impairment review during the second quarter of 2022 and (iv) the reporting units at which level we tested goodwill for impairment as of October 1, 2022 and the composition of these reporting units at December 31, 2022 (including the amount of goodwill associated with each reporting unit).

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(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

Our reporting units at which level we performed our goodwill impairment analysis as of October 1, 2021 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.

GOODWILL BY REPORTING UNIT AS OF DECEMBER 31, 2021

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

SEGMENT			REPORTING UNIT			CARRYING VALUE AS OF DECEMBER 31, 2021
Global RIM (as defined in Note 11) Business			North America RIM			$	2,720,049
Europe RIM			624,502
Latin America RIM			107,174
ANZ RIM			284,042
Asia RIM			240,494
Global Data Center Business			Global Data Center			426,074
Corporate and Other			Fine Arts			27,905
Entertainment Services			33,291
Total						$	4,463,531

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

III. 2022 REPORTING UNIT CHANGES

During the second quarter of 2022, as a result of the realignment of our global managerial structure, we reassessed the composition of our reportable segments (see Note 11 for a description and definition of our reportable segments) as well as our reporting units.

We note the following changes to our reporting units as a result of the reassessment described above:
•our former Europe RIM reporting unit is now managed as two separate reporting units: (i) our Middle East, North Africa and Turkey ("MENAT") businesses will comprise our "MENAT RIM" reporting unit and (ii) our other businesses in Europe and South Africa ("ESA") will comprise our "ESA RIM" reporting unit; •our former ANZ RIM and Asia RIM reporting units are now managed as one "APAC RIM" reporting unit; and •our ALM business, which includes our legacy secure IT asset disposition business (which was previously primarily included in our North America RIM reporting unit) and the business acquired through our acquisition of Intercept Parent, Inc. ("ITRenew"), will comprise our newly formed "ALM" reporting unit.

There were no changes to our Latin America RIM, Global Data Center and Fine Arts reporting units. We have reassigned goodwill associated with the reporting units impacted by the reorganization on a relative fair value basis, where appropriate. The fair value of each of our new reporting units was determined based on the application of a combined weighted average approach of preliminary fair value multiples of revenue and earnings and discounted cash flow techniques. These fair values represent our best estimate and preliminary assessment of goodwill allocations to each of the new reporting units on a relative fair value basis. We have completed an interim goodwill impairment analysis before and after the reporting unit changes, and we have concluded that the goodwill associated with each of our reporting units was not impaired.

IV. REPORTING UNITS AS OF OCTOBER 1, 2022

Our reporting units at which level we performed our goodwill impairment analysis as of October 1, 2022 were as follows:

•North America RIM •ESA RIM •MENAT RIM •Latin America RIM •APAC RIM			•Entertainment Services •Global Data Center •Fine Arts •ALM

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, 2022 and December 31, 2022.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

GOODWILL BY REPORTING UNIT AS OF DECEMBER 31, 2022

The carrying value of goodwill, net for each of our reporting units described above as of December 31, 2022 is as follows:

SEGMENT			REPORTING UNIT			CARRYING VALUE AS OF DECEMBER 31, 2022
Global RIM Business			North America RIM			$	2,667,400
ESA RIM			521,949
MENAT RIM			25,007
Latin America RIM			109,069
APAC RIM			497,792
Entertainment Services			31,729
Global Data Center Business			Global Data Center			418,502
Corporate and Other			Fine Arts			33,908
			ALM			577,378
Total						$	4,882,734

The fair value of our reporting units has 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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

The changes in the carrying value of goodwill attributable to each reportable segment for the years ended December 31, 2022 and 2021 are as follows:

			GLOBAL RIM BUSINESS						GLOBAL DATA CENTER BUSINESS						CORPORATE AND OTHER						TOTAL CONSOLIDATED
Goodwill balance, net of accumulated amortization, as of December 31, 2020			$	4,022,641					$	436,987					$	97,981					$	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			(58,104)						(10,913)						856						(68,161)
Goodwill balance, net of accumulated amortization, as of December 31, 2021			3,972,852						426,074						64,605						4,463,531
Deductible goodwill acquired during the year			—						—						912						912
Non-tax deductible goodwill acquired during the year			696						—						546,693						547,389
Fair value and other adjustments(1)			(12,199)						—						384						(11,815)
Currency effects			(108,403)						(7,572)						(1,308)						(117,283)
Goodwill balance, net of accumulated amortization, as of December 31, 2022			$	3,852,946					$	418,502					$	611,286					$	4,882,734
Accumulated Goodwill Impairment Balance as of December 31, 2021			$	132,409					$	—					$	26,011					$	158,420
Accumulated Goodwill Impairment Balance as of December 31, 2022			$	132,409					$	—					$	26,011					$	158,420

(1) This amount primarily represents an adjustment to goodwill as a result of the deconsolidation of certain businesses, as described in Note 4.

M. FINITE-LIVED INTANGIBLE ASSETS AND LIABILITIES

I. CUSTOMER AND SUPPLIER RELATIONSHIP INTANGIBLE ASSETS

Customer and supplier 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 and supplier relationship intangible assets are recorded based upon estimates of their fair value.

II. CUSTOMER INDUCEMENTS

Payments that are made to a customer in order to terminate the customer’s storage of records with its current records management 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 Withdrawal Fees that generally equal or exceed the amount of the unamortized Customer Inducement intangible asset.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(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, 2022 and 2021, respectively, are as follows:

			DECEMBER 31, 2022												DECEMBER 31, 2021
DESCRIPTION			GROSS CARRYING AMOUNT			ACCUMULATED AMORTIZATION			NET CARRYING AMOUNT						GROSS CARRYING AMOUNT			ACCUMULATED AMORTIZATION			NET CARRYING AMOUNT
Assets:
Customer and supplier relationship intangible assets(1)			$	2,162,154		$	(823,392)		$	1,338,762					$	1,835,949		$	(763,943)		$	1,072,006
Customer inducements(1)			47,794			(26,158)			21,636						51,403			(28,400)			23,003
Data center lease-based intangible assets(1)(2)			272,649			(209,902)			62,747						278,904			(192,870)			86,034
Third-party commissions asset and other(3)			83,297			(28,581)			54,716						33,947			(13,716)			20,231
Liabilities:
Data center below-market leases(4)			$	12,831		$	(7,806)		$	5,025					$	12,782		$	(6,923)		$	5,859

(1)Included in Customer and supplier relationship and other intangible assets in the accompanying Consolidated Balance Sheets as of December 31, 2022 and 2021.

(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, 2022 and 2021.

(4)Included in Other long-term liabilities in the accompanying Consolidated Balance Sheets as of December 31, 2022 and 2021.

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IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(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, 2022, 2021 and 2020 is as follows:

						YEAR ENDED DECEMBER 31,
						2022						2021						2020
Amortization expense included in depreciation and amortization associated with:
Customer and supplier relationship intangible assets						$	156,779					$	117,761					$	117,514
Data center in-place leases and tenant relationships						16,955						42,333						42,637
Third-party commissions asset and other finite-lived intangible assets						16,148						6,987						7,004
Revenue reduction associated with amortization of:
Customer inducements and data center above-market and below-market leases						$	8,119					$	8,852					$	9,878

Estimated amortization expense for existing finite-lived intangible assets (excluding Contract Fulfillment Costs, as defined and disclosed in Note 2.s.) 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
2023						$	181,866					$	6,198
2024						177,512						3,997
2025						175,963						2,504
2026						146,812						1,909
2027						124,434						1,299
Thereafter						648,895						1,447

N. 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.

O. 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 dollar and the currencies of 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, 2022 and 2021, none of our derivative instruments contained credit-risk related contingent features. See Note 6.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

P. 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, 2022 and 2021, respectively, are as follows:

												FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2022 USING
DESCRIPTION						TOTAL CARRYING VALUE AT DECEMBER 31, 2022						QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1)						SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)						SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Money Market Funds(1)						$	11,311					$	—					$	11,311					$	—
Time Deposits(1)						1,102						—						1,102						—
Trading Securities						9,462						9,426			(2)			36			(3)			—
Derivative Assets(4)						51,396						—						51,396						—
Derivative Liabilities(4)						489						—						489						—
Deferred Purchase Obligations(5)						193,033						—						—						193,033

												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						—

(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 our forward-starting interest rate swap agreement, to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness and on future borrowings from our Virginia Credit Agreement (as defined in Note 7) and (ii) cross-currency swap agreements to hedge the variability of exchange rate 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.

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IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(5)Primarily relates to the fair value of the Deferred Purchase Obligation associated with the ITRenew Transaction (each as defined in Note 3), which was determined utilizing a Monte-Carlo model and takes into account our forecasted projections as it relates to the underlying performance of the business. The Monte-Carlo simulation model incorporates assumptions as to expected gross profits over the applicable achievement period, including adjustments for the volatility of timing and amount of the associated revenue and costs, as well as discount rates that account for the risk of the underlying arrangement and overall market risks. Any material change to these assumptions may result in a significantly higher or lower fair value of the Deferred Purchase Obligation. During the fourth quarter of 2022, we recorded a change in the estimated fair value of the Deferred Purchase Obligation as described in Note 2.v.

There were no material items that were measured at fair value on a non-recurring basis for the years ended December 31, 2022 and 2021, with the exception of: (i) the reporting units as presented in our goodwill impairment analysis (as disclosed in Note 2.l.); (ii) assets acquired and liabilities assumed through our acquisitions (as disclosed in Note 3); (iii) the redemption value of certain redeemable noncontrolling interests (as disclosed in Note 2.q.); (iv) our investments in the Frankfurt JV, the Clutter JV and the Web Werks JV (each as defined in Note 5); and (v) the fair value of our retained investment of our deconsolidated businesses (as described in Note 4), 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, 2022 and 2021.

Q. REDEEMABLE NONCONTROLLING INTERESTS

Certain unaffiliated third parties own noncontrolling interests in certain of our 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.

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IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

R. ACCUMULATED OTHER COMPREHENSIVE ITEMS, NET

The changes in Accumulated other comprehensive items, net for the years ended December 31, 2022, 2021 and 2020 are as follows:

			FOREIGN CURRENCY TRANSLATION AND OTHER ADJUSTMENTS						CHANGE IN FAIR VALUE OF DERIVATIVE INSTRUMENTS						TOTAL
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)
Other comprehensive (loss) income:
Foreign currency translation and other adjustments			(113,485)						—						(113,485)
Change in fair value of derivative instruments			—						9,829						9,829
Total other comprehensive (loss) income			(113,485)						9,829						(103,656)
Balance as of December 31, 2022			$	(454,509)					$	12,506					$	(442,003)

90			IRON MOUNTAIN 2022 FORM 10-K

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

S. 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 withdrawal fees, project revenues and courier operations, consisting primarily of the pickup and delivery of records upon customer request; (2) destruction services, consisting primarily of (i) secure shredding of sensitive documents and the subsequent sale of shredded paper for recycling, the price of which can fluctuate from period to period, and (ii) the decommissioning, data erasure, processing and disposition or sale of IT hardware and component assets; (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 our revenue in accordance with ASC 606, Revenue from Contracts with Customers ("ASC 606"), with the exception of our data center revenue, as described below. 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 apply the "right to invoice" practical expedient as 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. Additionally, each purchasing decision is fully in the control of the customer; 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. Revenue from product sales, the significant majority of which are shred paper and IT asset sales, is recognized at the point in time at which control transfers to the customer, which is generally upon shipment.

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:

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 generally 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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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 generally 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.

Contract Fulfillment Costs, which are included as a component of Other within Other Assets, Net, as of December 31, 2022 and 2021 are as follows:

						DECEMBER 31, 2022																		DECEMBER 31, 2021
DESCRIPTION						GROSS CARRYING AMOUNT						ACCUMULATED AMORTIZATION						NET CARRYING AMOUNT						GROSS CARRYING AMOUNT						ACCUMULATED AMORTIZATION						NET CARRYING AMOUNT
Intake Costs asset						$	68,345					$	(42,132)					$	26,213					$	71,336					$	(42,678)					$	28,658
Commissions asset						133,145						(58,949)						74,196						114,791						(50,553)						64,238

Amortization expense associated with the Intake Costs and Commissions assets for the years ended December 31, 2022, 2021 and 2020 are as follows:

						YEAR ENDED DECEMBER 31,
DESCRIPTION						2022						2021						2020
Intake Costs asset						$	18,117					$	17,530					$	13,300
Commissions asset						40,612						30,739						24,052

Estimated amortization expense for Contract Fulfillment Costs is as follows:

YEAR						ESTIMATED AMORTIZATION
2023						$	51,785
2024						33,731
2025						14,893

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

									DECEMBER 31,
DESCRIPTION			LOCATION IN BALANCE SHEET						2022						2021
Deferred revenue - Current			Deferred revenue						$	328,910					$	307,470
Deferred revenue - Long-term			Other Long-term Liabilities						32,960						33,691

92			IRON MOUNTAIN 2022 FORM 10-K

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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. Our data center revenue contracts may contain Consumer Price Index rent escalation clauses. Consumer Price Index rent escalation clauses are recognized as income in the period earned.

Storage rental revenue, including revenue associated with power and connectivity, associated with our Global Data Center Business for the years ended December 31, 2022, 2021 and 2020 are as follows:

						YEAR ENDED DECEMBER 31,
						2022						2021						2020
Storage rental revenue(1)						$	372,208					$	289,592					$	263,695

(1)Revenue associated with power and connectivity included within storage rental revenue was $130,101, $62,185 and $47,451 for the years ended December 31, 2022, 2021 and 2020, 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
2023						$	295,489
2024						269,438
2025						220,528
2026						185,368
2027						162,032

T. STOCK-BASED COMPENSATION

We record stock-based compensation expense, utilizing the straight-line method, for the cost of stock options, restricted stock units ("RSUs"), and performance units ("PUs") (together, "Employee Stock-Based Awards").

2022 RETIREMENT ELIGIBLE CRITERIA

For our Employee Stock-Based Awards made on or after March 1, 2022, we have included the following retirement provision:

• Upon an employee’s retirement on or after attaining age 55 with at least five years of service, if the sum of (i) the award recipient’s age at retirement and (ii) the award recipient’s years of service with us totals at least 65, the award recipient is entitled to continued vesting of any outstanding Employee Stock-Based Awards, provided that their retirement occurs on or after a minimum of six months from the grant date (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 the six month anniversary in the year of the grant, will be expensed over six months from the date of grant 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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

• Stock options and RSUs granted to award recipients who meet the Retirement Criteria will be delivered to the award recipient based upon the original vesting schedule. If an award recipient retires and has met the Retirement Criteria, stock options will remain exercisable until the original expiration date of the stock options. PUs granted to award recipients who meet the Retirement Criteria will be delivered in accordance with the original vesting schedule of the applicable PU award and remain subject to the same performance conditions.

Stock-based compensation expense for Employee Stock-Based Awards included in the accompanying Consolidated Statements of Operations for the years ended December 31, 2022, 2021 and 2020 is as follows:

			YEAR ENDED DECEMBER 31,
			2022						2021						2020
Stock-based compensation expense			$	56,861					$	61,001					$	37,674
Stock-based compensation expense, after tax			52,600						59,243						36,584

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, 2022 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 at December 31, 2022 was 7,981,518.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

The weighted average fair value of stock options granted in 2022, 2021 and 2020 was $7.44, $3.23 and $2.35 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, 2022, 2021 and 2020 are as follows:

						YEAR ENDED DECEMBER 31,
WEIGHTED AVERAGE ASSUMPTIONS						2022						2021						2020
Expected volatility(1)						28.0		%				28.3		%				25.4		%
Risk-free interest rate(2)						1.72		%				1.45		%				1.45		%
Expected dividend yield(3)						5		%				7		%				7		%
Expected life(4)						10.0 years						10.0 years						10.0 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.

A summary of stock option activity for the year ended December 31, 2022 is as follows:

			OPTIONS						WEIGHTED AVERAGE EXERCISE PRICE						WEIGHTED AVERAGE REMAINING CONTRACTUAL TERM (YEARS)						AGGREGATE INTRINSIC VALUE
Outstanding at December 31, 2021			4,224,073						$	36.06
Granted			211,455						49.67
Exercised			(208,093)						33.00
Forfeited			(1,116)						35.72
Expired			—						—
Outstanding at December 31, 2022			4,226,319						$	36.89					5.03						$	54,788
Options exercisable at December 31, 2022			3,531,786						$	36.49					4.41						$	47,169
Options expected to vest			694,533						$	38.88					8.19						$	7,619

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, 2022, 2021 and 2020, are as follows:

			YEAR ENDED DECEMBER 31,
			2022						2021						2020
Fair value of RSUs vested			$	27,078					$	29,332					$	26,492

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

A summary of RSU activity for the year ended December 31, 2022 is as follows:

			RSUs						WEIGHTED-AVERAGE GRANT-DATE FAIR VALUE
Non-vested at December 31, 2021			1,403,633						$	34.11
Granted			949,413						50.26
Vested			(802,454)						33.74
Forfeited			(244,477)						38.63
Non-vested at December 31, 2022			1,306,115						$	43.43

PERFORMANCE UNITS

The PUs we issue vest based on our performance against predefined operational and share based targets. The vesting is subject to a minimum level of return on invested capital 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 total return on our common stock in relation to the MSCI United States REIT Index and (iii) for grants issued in 2021 and 2020, the revenue exit rate of new products in the last quarter of the three-year performance period. The number of PUs earned may range from 0% to approximately 238% of the initial award.

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. PUs are generally expensed over the three-year performance period. 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.

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, 2022, 2021 and 2020, we issued 435,675, 488,953 and 425,777 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, 2022, 2021 and 2020, is as follows:

			YEAR ENDED DECEMBER 31,
			2022						2021						2020
Fair value of earned PUs that vested			$	20,059					$	29,701					$	11,812

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

A summary of PU activity for the year ended December 31, 2022 is as follows:

			ORIGINAL PU AWARDS						PU ADJUSTMENT**(1)**						TOTAL PU AWARDS						WEIGHTED-AVERAGE GRANT-DATE FAIR VALUE
Non-vested at December 31, 2021			873,235						(541,444)						331,791						$	44.65
Granted			435,675						—						435,675						52.27
Prior year grant adjustments for performance (1)			—						56,894						56,894						36.78
Vested			(386,627)						—						(386,627)						51.88
Forfeited			(92,110)						—						(92,110)						49.61
Non-vested at December 31, 2022			830,173						(484,550)						345,623						$	45.65

(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.

EMPLOYEE STOCK PURCHASE PLAN

We offer an Employee Stock Purchase Plan ("ESPP") in which participation is available to substantially all United States and Canadian employees who meet certain service eligibility requirements. Shares of our common stock may be purchased by eligible employees at six-month intervals at 95% of the fair market price at the end of each six-month period, without a look-back feature, up to a maximum of 15% of their gross compensation during the offering period. 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 from 1,000,000 to 2,000,000. For the years ended December 31, 2022, 2021 and 2020, there were 112,486, 112,297 and 159,853 shares, respectively, purchased under the ESPP. As of December 31, 2022, we have 991,504 shares available under the ESPP.

As of December 31, 2022, unrecognized compensation cost related to the unvested portion of our Employee Stock-Based Awards was $49,455 and is expected to be recognized over a weighted-average period of 2.0 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.

U. 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 and system integration costs (collectively, "Acquisition and Integration Costs"). Acquisition and integration costs for the year ended December 31, 2022, 2021 and 2020 were $47,746, $12,764 and $0, respectively.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

V. OTHER (INCOME) EXPENSE, NET

Other (income) expense, net for the years ended December 31, 2022, 2021 and 2020 consists of the following:

			YEAR ENDED DECEMBER 31,
			2022						2021						2020
Foreign currency transaction (gains) losses, net(1)			$	(61,684)					$	(15,753)					$	29,830
Debt extinguishment expense			671						—						68,300
Other, net(2)(3)			(8,768)						(177,051)						45,415
Other (Income) Expense, Net			$	(69,781)					$	(192,804)					$	143,545

(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, which were redeemed in 2020, and (iii) certain foreign currency denominated intercompany obligations of our foreign subsidiaries to us and between our foreign subsidiaries, which are not considered permanently invested.

(2)Other, net for the year ended December 31, 2022 consists primarily of (i) a gain of approximately $93,600 associated with the remeasurement of the Deferred Purchase Obligation to the present value of our best estimate of fair value and (ii) a gain of approximately $35,800 associated with the Clutter Transaction (as defined in Note 5), partially offset by (iii) a loss of approximately $105,800 associated with the OSG Deconsolidation (as defined in Note 4) and (iv) losses on our equity method investments.

(3)Other, net for the year ended December 31, 2021 consists primarily of (i) a gain of approximately $179,000 associated with our IPM Divestment (as defined in Note 4) and (ii) 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 (iii) losses on our equity method investments.

W. 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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

X. 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, 2022, 2021 and 2020 is as follows:

			YEAR ENDED DECEMBER 31,
			2022						2021						2020
Net Income (Loss)			$	562,149					$	452,725					$	343,096
Less: Net Income (Loss) Attributable to Noncontrolling Interests			5,168						2,506						403
Net Income (Loss) Attributable to Iron Mountain Incorporated (utilized in numerator of Earnings Per Share calculation)			$	556,981					$	450,219					$	342,693
Weighted-average shares—basic			290,812,000						289,457,000						288,183,000
Effect of dilutive potential stock options			1,125,068						645,886						24,903
Effect of dilutive potential RSUs and PUs			507,109						872,204						435,287
Weighted-average shares—diluted			292,444,177						290,975,090						288,643,190
Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated:
Basic			$	1.92					$	1.56					$	1.19
Diluted			$	1.90					$	1.55					$	1.19
Antidilutive stock options, RSUs and PUs, excluded from the calculation			305,527						1,447,722						5,663,981

Y. NEW ACCOUNTING PRONOUNCEMENTS

NOT YET ADOPTED ACCOUNTING PRONOUNCEMENTS

In December 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 do not expect ASU 2021-08 to have a material impact on our consolidated financial statements upon its adoption.

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 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. Under ASU 2020-04, an entity could elect to apply the amendments beginning March 12, 2020 through December 31, 2022. In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848), Deferral of the Sunset Date of Topic 848 ("ASU 2022-06") to defer the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. We 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 and ASU 2022-06 on our consolidated financial statements, but we do not expect the impact to be material.

			IRON MOUNTAIN 2022 FORM 10-K			99

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

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, 2022

ITRENEW

On January 25, 2022, in order to expand our ALM operations, we acquired an approximately 80% interest in ITRenew at an agreed upon purchase price of $725,000, subject to certain working capital adjustments at, and subsequent to, the closing (the "ITRenew Transaction"). At closing, we paid $748,846 and acquired $30,720 of cash on hand, for a net purchase price of $718,126 for the ITRenew Transaction. The acquisition agreement provides us the option to purchase, and provides the shareholders of ITRenew 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 Interests"). The total payments for the Remaining Interests, based on the achievement of certain targeted performance metrics, will be no less than $200,000 and no more than $531,000 (the "Deferred Purchase Obligation"). From January 25, 2022, we consolidate 100% of the revenues and expenses associated with this business. The Deferred Purchase Obligation is reflected as a long-term liability in our Consolidated Balance Sheet at December 31, 2022, and, accordingly, we have not reflected any non-controlling interests associated with the ITRenew Transaction as the Remaining Interests have non-substantive equity interest rights. Subsequent increases or decreases in the fair value estimate of the Deferred Purchase Obligation are included as a component of Other (income) expense, net in our Consolidated Statements of Operations until the Deferred Purchase Obligation is settled or paid. See Note 2.v.

PRO FORMA FINANCIAL INFORMATION

The unaudited consolidated pro forma financial information (the "Pro Forma Financial Information") below summarizes the combined results of Iron Mountain and ITRenew on a pro forma basis as if the ITRenew Transaction had occurred on January 1, 2021. The Pro Forma Financial Information is presented for informational purposes and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place on January 1, 2021. The Pro Forma Financial Information, for the periods presented, includes purchase accounting adjustments (including amortization of acquired customer and supplier intangible assets and depreciation of acquired property, plant and equipment) and related tax effects. Through December 31, 2022, we and ITRenew collectively incurred $59,370 of operating expenditures to complete the ITRenew Transaction (including advisory and professional fees). These operating expenditures have been reflected within the results of operations in the Pro Forma Financial Information as if they were incurred on January 1, 2021.

			YEAR ENDED DECEMBER 31,
			2022						2021
Total Revenues			$	5,121,548					$	4,939,511
Income from Continuing Operations			571,381						391,625

In addition to our acquisition of ITRenew, we completed certain other acquisitions during the years ended December 2022, 2021 and 2020. The Pro Forma Financial Information does not reflect these acquisitions due to the insignificant impact of these acquisitions on our consolidated results of operations.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

3. ACQUISITIONS (CONTINUED)

XDATA PROPERTIES

On October 5, 2022, in order to further expand our data center operations in Europe, we completed the acquisition of XData Properties S.L.U., a data center colocation space and solutions provider with a data center in Spain, which we accounted for as an asset acquisition, for (i) cash consideration of 78,900 Euros (or approximately $78,200, based upon the exchange rate between the Euro and the United States dollar on the closing date of this acquisition), subject to adjustments, and (ii) up to 10,000 Euros (or approximately $9,900, based upon the exchange rate between the Euro and the United States dollar on the closing date of this acquisition) of additional consideration, payable based on the achievement of certain power connection milestones through December 2024.

OTHER 2022 ACQUISITIONS

In addition to the transactions noted above, during the year ended December 31, 2022, in order to enhance our existing operations in Morocco and expand our fine arts operations in China - Hong Kong S.A.R. and North America, we completed the acquisition of a records management company, a fine arts company and the assets of a second fine arts company, for a total combined purchase price of approximately $11,600, including deferred purchase obligations, purchase price holdbacks and other deferred payments of approximately $4,600.

B. 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.

C. 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 in 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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(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:

			2022																		2021						2020
			ITRENEW						OTHER FISCAL YEAR 2022 ACQUISITIONS						TOTAL						TOTAL						TOTAL
Cash Paid (gross of cash acquired)(1)			$	749,596					$	85,170					$	834,766					$	224,192					$	124,614
Fair Value of Noncontrolling Interests			—						—						—						3,878						—
Deferred Purchase Obligation, Purchase Price Holdbacks and Other(2)			275,100						13,637						288,737						2,534						—
Fair Value of Investments Applied to Acquisitions			—						—						—						—						27,276
Total Consideration			1,024,696						98,807						1,123,503						230,604						151,890
Fair Value of Identifiable Assets Acquired and Liabilities Assumed:
Cash			30,694						963						31,657						20,194						6,545
Accounts Receivable, Prepaid Expenses and Other Assets			71,612						3,947						75,559						26,911						16,559
Property, Plant and Equipment			7,541						93,722						101,263						150,095						52,021
Customer and Supplier Relationship Intangible Assets(3)			487,600						3,672						491,272						35,181						79,065
Data Center Lease-Based Intangible Assets(4)			—						1,442						1,442						9,656						—
Other Intangible Assets(5)			47,300						—						47,300						—						—
Operating Lease Right-of-Use Assets			29,545						3,135						32,680						40,848						100,040
Debt Assumed			—						—						—						(9,026)						(27,363)
Accounts Payable, Accrued Expenses and Other Liabilities			(60,157)						(2,069)						(62,226)						(22,733)						(19,564)
Operating Lease Liabilities			(29,545)						(3,135)						(32,680)						(40,848)						(100,040)
Deferred Income Taxes			(100,922)						(10,143)						(111,065)						(7,221)						(9,631)
Total Fair Value of Identifiable Net Assets Acquired			483,668						91,534						575,202						203,057						97,632
Goodwill Initially Recorded			$	541,028					$	7,273					$	548,301					$	27,547					$	54,258

(1)Cash paid for acquisitions, net of cash acquired in our Consolidated Statement of Cash Flows includes contingent and other payments of $581, $0 and $512 for the years ended December 31, 2022, 2021 and 2020, respectively, related to acquisitions made in the years prior to 2022, 2021 and 2020, respectively.

(2)In 2022, Deferred purchase obligation, purchase price holdbacks and other includes $275,100 related to the original fair value estimate of the Deferred Purchase Obligation for the Remaining Interests and approximately $13,600 of deferred purchase obligation, purchase price holdbacks and other associated with our other business and asset acquisitions completed in 2022.

(3)The weighted average lives of customer and supplier relationship intangible assets associated with acquisitions in 2022, 2021 and 2020 was 12 years, 11 years and 14 years, respectively.

(4)The weighted average lives of data center Iease-based intangible assets associated with acquisitions in 2022 and 2021 was four years and five years, respectively.

(5)The weighted average lives of other intangible assets associated with acquisitions in 2022 was five 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.

102			IRON MOUNTAIN 2022 FORM 10-K

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IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(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. Purchase price allocation adjustments recorded during the fourth quarter of 2022 and year ended December 31, 2022 were not material to our balance sheet or results from operations.

4. DIVESTMENTS AND DECONSOLIDATIONS

OSG RECORDS MANAGEMENT (EUROPE) LIMITED DECONSOLIDATION

On March 24, 2022, as a result of our loss of control, we deconsolidated the businesses included in our acquisition of OSG, excluding Ukraine ("OSG Deconsolidation"). We recognized a loss of approximately $105,800 associated with the deconsolidation to Other (income) expense, net in the first quarter of 2022 representing the difference between the net asset value prior to the deconsolidation and the subsequent remeasurement of the retained investment to a fair value of zero. We have concluded that the deconsolidation does not meet the criteria to be reported as discontinued operations in our consolidated financial statements, as it 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 these businesses are presented as a component of Operating income (loss) in our Consolidated Statements of Operations through the date of deconsolidation and the cash flows associated with these businesses are presented as a component of Cash flows from operations in our Consolidated Statements of Cash Flows through the date of the deconsolidation.

INTELLECTUAL PROPERTY MANAGEMENT BUSINESS DIVESTMENT

On June 7, 2021, we sold our Intellectual Property Management ("IPM") 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, 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.

5. INVESTMENTS

CLUTTER JOINT VENTURE

In February 2022, the joint venture formed by MakeSpace Labs, Inc. and us (the "MakeSpace JV") entered into an agreement with Clutter, Inc. ("Clutter") pursuant to which the equityholders of the MakeSpace JV contributed their ownership interests in the MakeSpace JV and Clutter’s shareholders contributed their ownership interests in Clutter to create a newly formed venture (the "Clutter JV"). In exchange for our 49.99% interest in the MakeSpace JV, we received an approximate 27% interest in the Clutter JV (the "Clutter Transaction"). As a result of the Clutter Transaction, we recognized a gain related to our contributed interest in the MakeSpace JV of approximately $35,800, which was recorded to Other, net, a component of Other expense (income), net during the year ended December 31, 2022.

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Part IV

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(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 on 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"). In August 2022, we made an additional investment of approximately 3,750,000 Indian rupees (or approximately $46,100, based upon the exchange rate between the United States dollar and Indian rupee on the date of the additional investment) in exchange for an additional interest in the form of convertible preference shares in the Web Werks JV (the "Second Web Werks JV Investment"). Under the terms of the Web Werks JV shareholder agreement, we are required to make an additional investment of approximately 3,750,000 Indian rupees by May 2023. The shares we received from the Initial Web Werks JV Investment and the Second Web Werks JV Investment converted to 382,574 equity shares, representing a 53.58% ownership in the JV as of December 31, 2022, determined by a valuation based upon the earnings before interest, taxes, depreciation and amortization ("EBITDA") of the Web Werks JV for the trailing twelve months ending July 31, 2022. Subsequent to the Second Web Werks JV Investment, the shareholders of Web Werks retained control of the financial and operating decisions of the Web Werks JV through their control of Web Werks JV's board of directors. As we do not control the board of directors or the key management decisions of the Web Werks JV, we account for our interest in the Web Werks JV as an equity method investment.

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, which is 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 first quarter of 2023. 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.

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, 2022 and 2021 are as follows:

						DECEMBER 31, 2022												DECEMBER 31, 2021
						CARRYING VALUE						EQUITY INTEREST						CARRYING VALUE						EQUITY INTEREST
Web Werks JV						$	98,278					53.58		%				$	51,140					38.50		%
Frankfurt JV						37,194						20.00		%				26,167						20.00		%
MakeSpace JV						—						—		%				30,154						49.99		%
Clutter JV						54,172						26.73		%				—						—		%

104			IRON MOUNTAIN 2022 FORM 10-K

Part IV

IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(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) and (ii) cross-currency swap agreements (which are designated as net investment hedges).

INTEREST RATE SWAP AGREEMENTS DESIGNATED AS CASH FLOW HEDGES

In November 2022, we entered into a forward-starting interest rate swap agreement to limit our exposure to changes in interest rates on future borrowings under our Virginia Credit Agreement (as defined in Note 7). The forward-starting interest rate swap agreement commences in July 2023 and expires in October 2025 (the "October 2025 Interest Rate Swap Agreement"). The October 2025 Interest Rate Swap Agreement has an initial notional value of $4,800, which is contracted to increase in monthly increments beginning in August 2023 to June 2025 to a total notional value of $153,800. Under the October 2025 Interest Rate Swap Agreement, we will receive variable rate interest payments based upon SOFR, in exchange for the payment of a fixed interest rate as specified in the October 2025 Interest Rate Swap Agreement.

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. These swap agreements expired in March 2022. 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. These forward-starting interest rate swap agreements commenced in March 2022. As of December 31, 2022 we have $350,000 in notional value outstanding on these interest rate swap agreements, which expire in March 2024 (the "March 2024 Interest Rate Swap Agreements"). Under the March 2024 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 March 2024 Interest Rate Swap Agreements.

We have designated each of the interest rate swap agreements described above as cash flow hedges. These interest rate swap agreements are marked to market at the end of each reporting period, representing the fair values of the interest rate 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.

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 $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 (the "August 2023 Cross Currency Swap Agreements"). In October 2022, one of these August 2023 Cross Currency Swap Agreements was amended to increase the notional value exchanged from approximately 49,500 Euros at an interest rate of 3.6% to approximately 55,466 Euros at an interest rate of (9.5%), resulting in a total notional value exchanged under the August 2023 Cross Currency Swap Agreements of approximately 105,020 Euros at a weighted average interest rate of approximately (3.3%).

In September 2020, 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 these cross-currency swap agreements, we notionally exchanged approximately $359,200 at an interest rate of 4.5% for 300,000 Euros at a weighted average interest rate of approximately 3.4%. These cross-currency swap agreements expire in February 2026 (the "February 2026 Cross Currency Swap Agreements"). In May 2022, the February 2026 Cross-Currency Swap Agreements were amended to increase the notional value exchanged to approximately 340,500 Euros at a weighted average interest rate of approximately 1.2%. In October 2022, the February 2026 Cross-Currency Swap Agreements were further amended to increase the notional value exchanged to approximately 362,083 Euros at a weighted average interest rate of approximately 0.2%.

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IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

6. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

We have designated these cross-currency swap agreements as hedges of net investments in 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 the end of 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. The excluded component of our cross-currency swap agreements is recorded in Accumulated other comprehensive items, net and amortized to interest expense on a straight-line basis.

Net assets (liabilities) recognized in our Consolidated Balance Sheets as of December 31, 2022 and 2021, by derivative instrument, are as follows:

DERIVATIVE INSTRUMENTS**(1)**						DECEMBER 31, 2022						DECEMBER 31, 2021
Cash Flow Hedges*(2)*
March 2024 Interest Rate Swap Agreements						$	12,915					$	(7,680)
October 2025 Interest Rate Swap Agreement						(409)						—
Net Investment Hedges*(3)*
August 2023 Cross Currency Swap Agreements						2,526						(664)
February 2026 Cross Currency Swap Agreements						35,875						11,021

(1)Our derivative assets are included as a component of (i) Prepaid expenses and other or (ii) 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, 2022, $2,606 is included within Prepaid expenses and other, $48,790 is included within Other assets, and $489 is included within Other long-term liabilities. 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.

(2)As of December 31, 2022, cumulative net gains of $12,506 are recorded within Accumulated other comprehensive items, net associated with these interest rate swap agreements.

(3)As of December 31, 2022, cumulative net gains of $38,401 are recorded within Accumulated other comprehensive items, net associated with these cross-currency swap agreements. These cumulative net gains are offset by $9,100 related to the excluded component of our cross-currency swap agreements.

Unrealized gains (losses), a component of Accumulated other comprehensive items, net, recognized during the years ending December 31, 2022, 2021 and 2020, by derivative instrument, are as follows:

						YEAR ENDED DECEMBER 31,
DERIVATIVE INSTRUMENTS						2022						2021						2020
Cash Flow Hedges
March 2024 Interest Rate Swap Agreements						$	20,595					$	13,382					$	(12,288)
October 2025 Interest Rate Swap Agreement						(409)						—						—
Net Investment Hedges
August 2023 Cross Currency Swap Agreements						3,190						7,565						(7,247)
February 2026 Cross Currency Swap Agreements						24,854						31,433						(20,412)

As of December 31, 2022, $9,100 is recognized in other Accumulated other comprehensive items, net related to the excluded component of our cross-currency swap agreements, reflected as a component of Interest expense, net in our Consolidated Statements of Operations.

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 we designated, on average, 300,000 Euros, of our Euro Notes as a hedge of net investment of certain of our Euro denominated subsidiaries. As a result, for the year ended December 31, 2020, we recorded a foreign exchange loss of $17,005 related to the change in fair value of such debt due to currency translation adjustments as a component of Accumulated other comprehensive items, net. As of December 31, 2022, 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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IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

7. DEBT

Long-term debt is as follows:

						DECEMBER 31, 2022																											DECEMBER 31, 2021
						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)						$	1,072,200					$	(6,790)					$	1,065,410					$	1,072,200								$	—					$	(5,174)					$	(5,174)					$	—
Term Loan A(1)						240,625						—						240,625						240,625									203,125						—						203,125						203,125
Term Loan B(1)(2)						666,073						(3,747)						662,326						666,750									672,847						(4,995)						667,852						675,500
Australian Dollar Term Loan (3)(4)						202,641						(633)						202,008						204,623									223,182						(656)						222,526						223,530
UK Bilateral Revolving Credit Facility(4)						169,361						—						169,361						169,361									189,168						(709)						188,459						189,168
37/8% GBP Senior Notes due 2025 (the "GBP Notes")(5)(7)(8)						483,888						(2,589)						481,299						445,206									540,481						(3,912)						536,569						542,508
47/8% Senior Notes due 2027 (the “47/8% Notes due 2027")(5)(6)(7)						1,000,000						(6,754)						993,246						917,500									1,000,000						(8,176)						991,824						1,030,000
51/4% Senior Notes due 2028 (the “51/4% Notes due 2028")(5)(6)(7)						825,000						(6,200)						818,800						754,875									825,000						(7,380)						817,620						862,125
5% Senior Notes due 2028 (the “5% Notes due 2028")(5)(6)(7)						500,000						(4,039)						495,961						450,000									500,000						(4,763)						495,237						513,750
47/8% Senior Notes due 2029 (the “47/8% Notes due 2029")(5)(6)(7)						1,000,000						(9,764)						990,236						865,000									1,000,000						(11,211)						988,789						1,022,500
51/4% Senior Notes due 2030 (the “51/4% Notes due 2030")(5)(6)(7)						1,300,000						(11,407)						1,288,593						1,111,500									1,300,000						(12,911)						1,287,089						1,355,250
41/2% Senior Notes due 2031 (the “41/2% Notes")(5)(6)(7)						1,100,000						(10,161)						1,089,839						891,000									1,100,000						(11,404)						1,088,596						1,094,500
5% Senior Notes due 2032 (the “5% Notes due 2032")(5)(7)(9)						750,000						(12,511)						737,489						622,500									750,000						(13,782)						736,218						767,813
55/8% Senior Notes due 2032 (the “55/8% Notes")(5)(6)(7)						600,000						(5,566)						594,434						520,500									600,000						(6,147)						593,853						637,500
Real Estate Mortgages, Financing Lease Liabilities and Other(10)						425,777						(578)						425,199						425,777									460,648						(840)						459,808						460,648
Accounts Receivable Securitization Program(11)						314,700						(531)						314,169						314,700									—						(450)						(450)						—
Total Long-term Debt						10,650,265						(81,270)						10,568,995															9,364,451						(92,510)						9,271,941
Less Current Portion						(87,546)						—						(87,546)															(310,084)						656						(309,428)
Long-term Debt, Net of Current Portion						$	10,562,719					$	(81,270)					$	10,481,449														$	9,054,367					$	(91,854)					$	8,962,513

(1)The capital stock or other equity interests of our United States subsidiaries representing the substantial majority of our US operations, 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 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 Revolving Credit Facility. The fair value (Level 3 of fair value hierarchy described at Note 2.p.) 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, 2022 and 2021.

(2)The amount of debt for the Term Loan B (as defined below) reflects an unamortized original issue discount of $677 and $903 as of December 31, 2022 and 2021, respectively.

(3)The amount of debt for the AUD Term Loan reflects an unamortized original issue discount of $1,982 and $348 as of December 31, 2022 and 2021, respectively.

(4)The fair value (Level 3 of fair value hierarchy described at Note 2.p.) 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.p.) of these debt instruments are based on quoted market prices for these notes on December 31, 2022 and 2021, respectively.

(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 United States subsidiaries that represent the substantial majority of our United States operations (the "Note Guarantors"). These guarantees are joint and several obligations of the Note Guarantors. The remainder of our subsidiaries do not guarantee the Parent Notes.

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IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

7. DEBT (CONTINUED)

(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 Note Guarantors. These guarantees are joint and several obligations of IMI and the Note Guarantors. The remainder of our subsidiaries do not guarantee the GBP Notes.

(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 Note Guarantors. These guarantees are joint and several obligations of IMI and the Note Guarantors. The remainder of our subsidiaries do not guarantee the 5% Notes due 2032.

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

			DECEMBER 31, 2022						DECEMBER 31, 2021
Real estate mortgages(1)			$	58,355					$	58,933
Financing lease liabilities(2)			332,905						356,729
Other notes and other obligations(3)			34,517						44,986
			$	425,777					$	460,648

(1)Bear interest at approximately 3.6% at both December 31, 2022 and 2021, and includes $50,000 outstanding under our Mortgage Securitization Program at both December 31, 2022 and 2021.

(2)Bear a weighted average interest rate of 5.2% and 5.9% at December 31, 2022 and 2021.

(3)These notes and other obligations, which were assumed by us as a result of certain acquisitions bear a weighted average interest rate of 10.1% and 10.7% at December 31, 2022 and 2021.

(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.p.) 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"), a term loan A (the "Term Loan A") and a term loan B (the "Term Loan B"). On March 18, 2022, we entered into an amendment to the Credit Agreement which included the following changes:

(i) extended the maturity date of the Revolving Credit Facility and the Term Loan A from June 3, 2023 to March 18, 2027;

(ii) refinanced and increased the borrowing capacity that IMI and certain of its United States and foreign subsidiaries are able to borrow under the Revolving Credit Facility from $1,750,000 to $2,250,000;

(iii) refinanced the existing Term Loan A with a new $250,000 Term Loan A; and

(iv) increased the net total lease adjusted leverage ratio maximum allowable from 6.5x to 7.0x and removed the net secured lease adjusted leverage ratio requirement.

The Revolving Credit Facility enables IMI and certain of its subsidiaries to borrow in United States dollars and (subject to sublimits) Canadian dollars in an aggregate outstanding amount not to exceed $2,250,000. Additionally, the Credit Agreement permits us to incur incremental indebtedness thereunder by adding new term loans or revolving loans or by increasing the principal amount of any existing loans thereunder. The Revolving Credit Facility and the Term Loan A are scheduled to mature on March 18, 2027, at which point all obligations become due. On March 18, 2022, we borrowed the full amount of the Term Loan A of $250,000. The Term Loan A is to be paid in quarterly installments in an amount equal to $3,125 per quarter. IMI’s wholly owned subsidiary, Iron Mountain Information Management, LLC ("IMIM"), is the borrower under the Term Loan B, which has a principal amount of $700,000. The Term Loan B, which matures on January 2, 2026, was issued at 99.75% of par. Principal payments on the Term Loan B are to be paid in quarterly installments of $1,750.

108			IRON MOUNTAIN 2022 FORM 10-K

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IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

7. DEBT (CONTINUED)

IMI and certain subsidiaries of IMI that represent the substantial majority of our operations in the United States, Canada and the United Kingdom guarantee all obligations under the Credit Agreement. The interest rate on borrowings under the Revolving Credit Facility varies depending on our choice of interest rate benchmark and currency options, plus an applicable margin, which varies based on our consolidated leverage ratio. The Term Loan A bears interest at the Secured Overnight Financing Rate ("SOFR") plus a credit spread adjustment of 0.1% plus 1.75%. The Term Loan B bears interest at a rate of LIBOR plus 1.75%. Additionally, the Credit Agreement requires the payment of a commitment fee on the unused portion of the Revolving Credit Facility, which fee ranges from 0.2% to 0.3% based on our consolidated leverage ratio.

As of December 31, 2022, we had $1,072,200, $240,625 and $666,073 outstanding under the Revolving Credit Facility, the Term Loan A and the Term Loan B, respectively. At December 31, 2022, we had various outstanding letters of credit totaling $3,824 under the Revolving Credit Facility. The remaining amount available for borrowing under the Revolving Credit Facility as of December 31, 2022, 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 $1,173,976 (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 weighted average interest rate in effect under the Revolving Credit Facility as of December 31, 2022 was 6.2%. The interest rate in effect under the Term Loan A as of December 31, 2022 and 2021 was 6.2% and 1.9%, respectively. The interest rate in effect under the Term Loan B as of December 31, 2022 and 2021 was 4.8% and 3.1%, respectively.

REVOLVING CREDIT FACILITY $2,250,000									TERM LOAN A $250,000									TERM LOAN B $700,000
Outstanding borrowings $1,072,200									Aggregate outstanding principal amount $240,625									Aggregate outstanding principal amount $666,750
6.2% Interest rate									6.2% Interest rate									4.8% Interest rate
As of December 31, 2022									As of December 31, 2022									As of December 31, 2022

B. VIRGINIA CREDIT AGREEMENT

On October 31, 2022, Iron Mountain Data Centers Virginia 4/5 Subsidiary, LLC, a wholly owned subsidiary of Iron Mountain Data Centers Virginia 4/5 JV, LP, entered into a credit agreement (the "Virginia Credit Agreement") in order to finance the construction of two data center facilities in Virginia. The Virginia Credit Agreement consists of a term loan and a letter of credit facility with the first borrowing under the term loan expected to occur in the third quarter of 2023. Borrowings under the Virginia Credit Agreement are guaranteed by Iron Mountain Data Centers Virginia 4/5 JV, LP, a special purpose vehicle, and not by IMI or any other subsidiary of IMI. We have the option to borrow, in the form of term loans, an aggregate outstanding amount not to exceed approximately $205,000. At December 31, 2022, we had approximately $6,400 in outstanding letters of credit under the Virginia Credit Agreement. The Virginia Credit Agreement requires the payment of a commitment fee on any unused commitments at a rate of 0.4875%. We have the option to select between various base rates for any given borrowing under the Virginia Credit Agreement, and the interest rate and applicable margin on such borrowings vary depending on the chosen base rate. The Virginia Credit Agreement is scheduled to mature on October 31, 2025, at which point all obligations will become due. We have two one-year options that allow us to extend the maturity date beyond the October 31, 2025 expiration date, subject to the conditions specified in the Virginia Credit Agreement, including the lender's consent. As of December 31, 2022, we have no outstanding borrowings under the Virginia Credit Agreement.

C. 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.

			IRON MOUNTAIN 2022 FORM 10-K			109

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IRON MOUNTAIN INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

7. DEBT (CONTINUED)

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.

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 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. In 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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

7. DEBT (CONTINUED)

D. 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 7,695 Australian dollars per year. On March 18, 2022, IM Australia amended its AUD Term Loan to (i) extend the maturity date from September 22, 2022 to September 30, 2026 and (ii) decrease the interest rate from BBSY (an Australian benchmark variable interest rate) plus 3.875% to BBSY plus 3.625%.

As of December 31, 2022, we had 300,117 Australian dollars ($204,623 based upon the exchange rate between the United States dollar and the Australian dollar as of December 31, 2022) outstanding on the AUD Term Loan. 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. The interest rate in effect under the AUD Term Loan was 6.9% and 4.0% as of December 31, 2022 and 2021, respectively.									OUTSTANDING BORROWINGS AU$300,117
						6.9% Interest rate
						As of December 31, 2022

E. UK BILATERAL REVOLVING CREDIT FACILITY

IM UK and Iron Mountain (UK) Data Centre Limited (collectively, the "UK Borrowers") have a 140,000 British pounds sterling Revolving Credit Facility (the "UK Bilateral Revolving Credit Facility") with Barclays Bank PLC. The maximum amount permitted to be borrowed under the UK Bilateral Revolving Credit Facility is 140,000 British pounds sterling. We have the option to request additional commitments of up to 125,000 British pounds sterling, subject to conditions specified in the UK Bilateral Revolving Credit Facility. The UK Bilateral Revolving Credit Facility is secured by certain properties in the United Kingdom. IMI and subsidiaries of IMI that represent the substantial majority of our operations in the United States and the United Kingdom guarantee all obligations under the UK Bilateral Revolving Credit Facility. The UK Bilateral Revolving Credit Facility bears interest at the Sterling Overnight Index Average plus 2.0%.

The UK Bilateral Revolving Credit Facility was previously scheduled to mature on September 24, 2023, at which point all obligations were to become due, with the option to extend the maturity date for an additional year, subject to the conditions specified in the UK Bilateral Revolving Credit Facility, including the lender’s consent. On September 22, 2022, the UK Borrowers exercised their option to extend the maturity date from September 24, 2023 to September 24, 2024. The UK Bilateral Revolving Credit Facility was fully drawn as of December 31, 2022. The interest rate in effect under the UK Bilateral Revolving Credit Facility was 5.5% and 2.1% as of December 31, 2022 and 2021, respectively.									MAXIMUM AMOUNT £140,000 OPTIONAL ADDITIONAL COMMITMENTS £125,000 5.5% Interest rate As of December 31, 2022

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

7. DEBT (CONTINUED)

F. 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 29, 2022, we amended the Accounts Receivable Securitization Program to (i) increase the maximum borrowing capacity from $300,000 to $325,000, with an option to increase the borrowing capacity to $400,000, (ii) change the interest rate under Accounts Receivable Securitization Program from LIBOR plus 1.0% to SOFR plus 0.95%, with a credit spread adjustment of 0.10% and (iii) extend the maturity date from July 1, 2023 to July 1, 2025, at which point all obligations become due. As of December 31, 2022 and 2021, the amount outstanding under the Accounts Receivable Securitization Program was $314,700 and $0, respectively. The interest rate in effect under the Accounts Receivable Securitization Program was 5.4% as of December 31, 2022. Commitment fees at a rate of 35 basis points are charged on amounts made available but not borrowed under the Accounts Receivable Securitization Program.									MAXIMUM AMOUNT $325,000
						OUTSTANDING BORROWINGS $314,700 INTEREST RATE 5.4% As of December 31, 2022

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

7. DEBT (CONTINUED)

G. CASH POOLING

Certain of our subsidiaries participate in cash pooling arrangements (the "Cash Pools") to help manage global liquidity requirements. We utilize the following Cash Pools: (i) two Cash Pools with Bank Mendes Gans, an independently operated wholly owned subsidiary of ING Group, one of which we use to manage global liquidity requirements for our qualified REIT subsidiaries ("QRSs") and the other for our taxable REIT subsidiaries ("TRSs"); (ii) two Cash Pools with JP Morgan Chase Bank, N.A. ("JPM"), one of which we use to manage liquidity requirements for our QRSs in the Asia Pacific region and the other for our TRSs in the Asia Pacific region; and (iii) two Cash Pools with JPM, which we entered into in the third quarter of 2022, one of which we use to manage liquidity requirements for our QRSs in the Europe, Middle East, and Africa regions and the other for our TRSs in the Europe, Middle East, and Africa regions.

Under each of the Cash Pools, cash deposited by participating subsidiaries with certain financial institutions is pledged as security against the debit balances of other participating subsidiaries with legal rights of offset provided to the financial institutions, and, therefore, such 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.

The net cash position balances as of December 31, 2022 and 2021 are reflected as Cash and cash equivalents in our Consolidated Balance Sheets.

H. LETTERS OF CREDIT

As of December 31, 2022, we had outstanding letters of credit totaling $39,795, of which $3,824 reduce our borrowing capacity under the Revolving Credit Facility (as described above). The letters of credit expire at various dates between January 2023 and March 2025.

I. 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 net total lease adjusted leverage ratio and a fixed charge coverage 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 EBITDAR- and EBITDA-based leverage calculations include our consolidated subsidiaries, other than those we have designated as "Unrestricted Subsidiaries" as defined in the Credit Agreement and 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, 2022. 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, 2022

(In thousands, except share and per share data)

7. DEBT (CONTINUED)

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

YEAR						AMOUNT
2023						$	87,546
2024						249,423
2025						920,142
2026						923,943
2027						2,278,061
Thereafter						6,193,809
						10,652,924
Net Discounts						(2,659)
Net Deferred Financing Costs						(81,270)
Total Long-term Debt (including current portion)						$	10,568,995

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)**
2023						$	528,818
2024						222,189
2025						104,788
2026						13,760
2027						132,045
Thereafter						3,893
						$	1,005,493

(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 2023 and (ii) exclude our operating and financing lease obligations (see Note 2.j.) and our deferred purchase obligations (see Note 2.p.).

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, 2022 and 2021, there were $46,663 and $46,797, 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, 2022

(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 $21,500 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 2020, 2021 and 2022, our board of directors declared the following dividends:

DECLARATION DATE						DIVIDEND PER SHARE						RECORD DATE						TOTAL AMOUNT						PAYMENT DATE
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
February 24, 2022						0.6185						March 15, 2022						179,661						April 6, 2022
April 28, 2022						0.6185						June 15, 2022						179,781						July 6, 2022
August 4, 2022						0.6185						September 15, 2022						179,790						October 4, 2022
November 3, 2022						0.6185						December 15, 2022						179,866						January 5, 2023

On February 23, 2023, we declared a dividend to our stockholders of record as of March 15, 2023 of $0.6185 per share, payable on April 5, 2023.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

9. STOCKHOLDERS’ EQUITY MATTERS (CONTINUED)

During the years ended December 31, 2022, 2021 and 2020, 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,
			2022						2021						2020
Declared distributions			$	719,098					$	715,807					$	712,773
Amount per share each distribution represents based on weighted average number of common shares outstanding			2.47						2.47						2.47

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, 2022, 2021 and 2020, the dividends we paid on our common shares were classified as follows:

			YEAR ENDED DECEMBER 31,
			2022						2021						2020
Nonqualified ordinary dividends			90.4		%				53.9		%				43.0		%
Qualified ordinary dividends			—		%				13.0		%				0.0		%
Capital gains			9.6		%				21.8		%				49.5		%
Return of capital			—		%				11.3		%				7.5		%
			100.0		%				100.0		%				100.0		%

Dividends paid during the years ended December 31, 2022, 2021 and 2020 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, 2022, 2021 and 2020. In 2022, the percentage of our dividend that was classified as a capital gain was 9.6% and was primarily related to the sale of land and buildings in the United States and Canada. In 2021, the percentage of our dividend that was classified as a capital gain was 21.8% and 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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

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 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.

The significant components of our deferred tax assets and deferred tax liabilities as of December 31, 2022 and 2021 are presented below:

			DECEMBER 31,
			2022						2021
Deferred Tax Assets:
Accrued liabilities and other adjustments			$	80,159					$	54,859
Net operating loss carryforwards			97,161						90,996
Valuation allowance			(47,514)						(51,744)
			129,806						94,111
Deferred Tax Liabilities:
Other assets, principally due to differences in amortization			(243,150)						(178,657)
Plant and equipment, principally due to differences in depreciation			(78,486)						(76,204)
Other			(52,786)						(46,281)
			(374,422)						(301,142)
Net deferred tax liability			$	(244,616)					$	(207,031)

The deferred tax assets and deferred tax liabilities as of December 31, 2022 and 2021 are presented below:

			DECEMBER 31,
			2022						2021
Noncurrent deferred tax assets (Included in Other, a component of Other assets, net)			$	18,389					$	16,903
Deferred income taxes			(263,005)						(223,934)

At December 31, 2022, we have federal net operating loss carryforwards of $63,497, which can be carried forward indefinitely, of which $57,132 is expected to be realized to reduce future federal taxable income. We have assets for foreign net operating losses of $81,872, with various expiration dates (and in some cases no expiration date), subject to a valuation allowance of approximately 56.0%. If actual results differ unfavorably from certain of our estimates used, we may not be able to realize all or part of our net deferred income tax assets and additional valuation allowances may be required. Although we believe our estimates are reasonable, no assurance can be given that our estimates reflected in the tax provisions and accruals will equal our actual results. These differences could have a material impact on our income tax provision and operating results in the period in which such determination is made.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

10. INCOME TAXES (CONTINUED)

Rollforward of the valuation allowance is as follows:

YEAR ENDED DECEMBER 31,						BALANCE AT BEGINNING OF THE YEAR						(CREDITED) CHARGED TO EXPENSE						OTHER (DECREASES)/ INCREASES**(1)**						BALANCE AT END OF THE YEAR
2022						$	51,744					$	(1,333)					$	(2,897)					$	47,514
2021						46,938						8,406						(3,600)						51,744
2020						60,003						(8,337)						(4,728)						46,938

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

The components of net income (loss) before provision (benefit) for income taxes for the years ended December 31, 2022, 2021 and 2020 are as follows:

			YEAR ENDED DECEMBER 31,
			2022						2021						2020
United States			$	449,241					$	212,460					$	276,145
Canada			103,826						78,780						52,332
Other Foreign			78,571						337,775						44,228
Net income (loss) before provision (benefit) for income taxes			$	631,638					$	629,015					$	372,705

The provision (benefit) for income taxes for the years ended December 31, 2022, 2021 and 2020 consist of the following components:

			YEAR ENDED DECEMBER 31,
			2022						2021						2020
Federal—current			$	24,331					$	54,867					$	(10,424)
Federal—deferred			(30,581)						14,322						8,834
State—current			8,553						9,566						2,956
State—deferred			(3,728)						(526)						(625)
Foreign—current			92,525						83,154						50,063
Foreign—deferred			(21,611)						14,907						(21,195)
Provision (Benefit) for Income Taxes			$	69,489					$	176,290					$	29,609

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

10. INCOME TAXES (CONTINUED)

A reconciliation of total income tax expense and the amount computed by applying the current federal statutory tax rate of 21.0% to net income (loss) before provision (benefit) for income taxes for the years ended December 31, 2022, 2021 and 2020, respectively, is as follows:

			YEAR ENDED DECEMBER 31,
			2022						2021						2020
Computed "expected" tax provision			$	132,644					$	132,093					$	78,268
Changes in income taxes resulting from:
Tax adjustment relating to REIT			(82,620)						(8,203)						(60,378)
State taxes (net of federal tax benefit)			4,043						8,027						2,258
(Decrease) increase in valuation allowance (net operating losses)			(1,333)						8,406						(8,337)
Withholding taxes			10,600						23,654						6,835
Reserve (reversal) accrual and audit settlements (net of federal tax benefit)			40						3,072						(7,409)
Remeasurement of the Deferred Purchase Obligation			(19,656)						—						—
Foreign tax rate differential			22,227						9,856						9,472
Disallowed foreign interest, Subpart F income, and other foreign taxes			2,820						(3,437)						13,407
Other, net			724						2,822						(4,507)
Provision (Benefit) for Income Taxes			$	69,489					$	176,290					$	29,609

Our effective tax rates for the years ended December 31, 2022, 2021 and 2020 were 11.0%, 28.0% and 7.9%, respectively. Our effective tax rate is subject to variability in the future due to, among other items: (i) changes in the mix of income between our QRSs and our TRSs, as well as among the jurisdictions in which we operate; (ii) tax law changes; (iii) volatility in foreign exchange gains and losses; (iv) the timing of the establishment and reversal of tax reserves; (v) our ability to utilize net operating losses that we generate and (vi) the taxability or deductibility of significant transactions.

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

YEAR ENDED DECEMBER 31,
2022			2021			2020
The benefits derived from the dividends paid deduction of $82,620 and the differences in the tax rates to which our foreign earnings are subject of $22,227. In addition, there were gains and losses recorded in Other (income) expense, net and Gain (loss) on disposal/write-down of property, plant and equipment, net during the period for which there were insignificant tax impacts.			The benefit derived from the dividends paid deduction of $8,203 which was offset by (i) 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 (ii) 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.

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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

10. INCOME TAXES (CONTINUED)

During 2021, as a result of the enactment of a tax law and the closing of various acquisitions, we 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 Organization for Economic Co-operation and Development (the "OECD"), an international association comprised of 38 countries, including the United States, has issued proposals that change long-standing tax principles including on a global minimum tax initiative. On December 12, 2022, the European Union member states agreed to implement the OECD’s Base Erosion and Profit Shifting ("BEPS") 2.0 Pillar Two global corporate minimum tax rate of 15% on companies with revenues of at least $790,000, which would go into effect in 2024. Other countries are also actively considering changes to their tax laws to adopt certain parts of the OECD’s proposals. In December 2022, South Korea enacted new global minimum tax rules to align with OECD BEPS 2.0 Pillar Two. We will continue to monitor regulatory developments to assess potential impacts of OECD proposals on us.

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 increases of $90 and $823 for gross interest and penalties for the years ended December 31, 2022 and 2021, respectively. We recorded a decrease of $1,499 for gross interest and penalties for the years ended December 31, 2020. We had $6,635 and $6,805 accrued for the payment of interest and penalties as of December 31, 2022 and 2021, 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
2019 to present						United Kingdom
2015 to present						Canada

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 2021, 2020 and 2019 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, 2022, we had $27,753 of reserves related to uncertain tax positions, of which $24,671 and $3,082 is included in other long-term liabilities and deferred income taxes, respectively, in the accompanying Consolidated Balance Sheet. 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. 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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

10. INCOME TAXES (CONTINUED)

A rollforward of unrecognized tax benefits is as follows:

Gross tax contingencies—January 1, 2020			$	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
Gross additions based on tax positions related to the current year			2,271
Gross additions for tax positions of prior years			723
Gross reductions for tax positions of prior years			(1,866)
Acquired unrecognized tax benefits			1,354
Lapses of statutes			(2,501)
Gross tax contingencies—December 31, 2022			$	27,753

The reversal of these reserves of $27,753 as of December 31, 2022 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 $5,977 of our unrecognized tax positions may be recognized by the end of 2023 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, 2022

(In thousands, except share and per share data)

11. SEGMENT INFORMATION

As of December 31, 2022, our two 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 ("Records Management") for customers in 60 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, server and computer backup services and related services offerings ("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.

(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. 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.

(v)Entertainment Services, entertainment and media services which help 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.

(vi)Consumer Storage, which provides on-demand, valet storage for consumers 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.

The remaining activities of our business consist primarily of our Fine Arts and ALM businesses and other corporate items ("Corporate and Other").

(i)Fine Arts provides technical expertise in the handling, installation and storing of art.

*(ii)*ALM provides hyperscale and corporate IT infrastructure managers with services and solutions that enable the decommissioning, data erasure, processing and disposition or sale of IT hardware and component assets. ALM services are enabled by: secure logistics, chain of custody and complete asset traceability practices, environmentally-responsible asset processing and recycling, and data sanitization and asset refurbishment services that enable value recovery through asset remarketing. Our ALM services focus on protecting and eradicating customer data while maintaining strong, auditable and transparent chain of custody practices.

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

11. SEGMENT INFORMATION (CONTINUED)

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

			GLOBAL RIM BUSINESS						GLOBAL DATA CENTER BUSINESS						CORPORATE AND OTHER						TOTAL CONSOLIDATED
As of and for the Year Ended December 31, 2022
Total Revenues			$	4,295,115					$	401,125					$	407,334					$	5,103,574
Storage Rental			2,606,721						372,208						55,094						3,034,023
Service			1,688,394						28,917						352,240						2,069,551
Depreciation and Amortization			469,419						140,028						118,148						727,595
Depreciation			308,207						103,953						66,824						478,984
Amortization			161,212						36,075						51,324						248,611
Adjusted EBITDA			1,887,589						175,622						(236,154)						1,827,057
Total Assets(1)			10,654,650						3,752,088						1,733,776						16,140,514
Expenditures for Segment Assets			303,342						650,534						803,733						1,757,609
Capital Expenditures			246,216						551,232						77,930						875,378
Cash Paid for Acquisitions, Net of Cash Acquired			(23)						78,103						725,610						803,690
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs			57,149						21,199						193						78,541
As of and for the Year Ended December 31, 2021
Total Revenues			$	3,994,988					$	326,898					$	169,645					$	4,491,531
Storage Rental			2,517,208						289,592						63,319						2,870,119
Service			1,477,780						37,306						106,326						1,621,412
Depreciation and Amortization			477,713						148,023						54,686						680,422
Depreciation			320,451						93,679						50,942						465,072
Amortization			157,262						54,344						3,744						215,350
Adjusted EBITDA			1,709,525						137,349						(212,175)						1,634,699
Total Assets(1)			11,101,557						2,911,823						436,651						14,450,031
Expenditures for Segment Assets			369,749						422,274						94,875						886,898
Capital Expenditures			213,395						320,768						76,919						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			$	3,748,604					$	279,312					$	119,354					$	4,147,270
Storage Rental			2,416,147						263,695						74,249						2,754,091
Service			1,332,457						15,617						45,105						1,393,179
Depreciation and Amortization			464,745						134,844						52,480						652,069
Depreciation			316,575						83,106						47,881						447,562
Amortization			148,170						51,738						4,599						204,507
Adjusted EBITDA			1,565,941						126,576						(216,796)						1,475,721
Total Assets(1)			11,015,684						2,727,654						405,929						14,149,267
Expenditures for Segment Assets			352,745						249,459						29,650						631,854
Capital Expenditures			164,914						243,699						29,650						438,263
Cash Paid for Acquisitions, Net of Cash Acquired			118,581						—						—						118,581
Acquisitions of Customer Relationships, Customer Inducements, Contract Fulfillment Costs and third-party commissions			69,250						5,760						—						75,010

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(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 net income (loss) 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 and other transformation •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 Net Income (Loss) to Adjusted EBITDA on a consolidated basis for the years ended December 31, 2022, 2021 and 2020 is as follows:

			YEAR ENDED DECEMBER 31,
			2022						2021						2020
Net Income (Loss)			$	562,149					$	452,725					$	343,096
Add/(Deduct):
Interest expense, net			488,014						417,961						418,535
Provision (benefit) for income taxes			69,489						176,290						29,609
Depreciation and amortization			727,595						680,422						652,069
Acquisition and Integration Costs			47,746						12,764						—
Restructuring and other transformation			41,933						206,426						194,396
Intangible impairments			—						—						23,000
(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate)			(93,268)						(172,041)						(363,537)
Other (income) expense, net, excluding our share of losses (gains) from our unconsolidated joint ventures(1)			(83,268)						(205,746)						133,611
Stock-based compensation expense			56,861						61,001						34,272
COVID-19 Costs(2)			—						—						9,285
Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures			9,806						4,897						1,385
Adjusted EBITDA			$	1,827,057					$	1,634,699					$	1,475,721

(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, in 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, 2022

(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, 2022, 2021 and 2020 is as follows:

			YEAR ENDED DECEMBER 31,
			2022						2021						2020
Revenues:
United States			$	3,262,755					$	2,713,147					$	2,577,084
United Kingdom			332,556						294,675						247,667
Canada			270,836						252,385						224,860
Australia			144,840						148,431						133,815
Remaining Countries			1,092,587						1,082,893						963,844
Long-lived Assets:
United States			$	8,925,643					$	7,867,841					$	7,818,059
United Kingdom			1,062,641						914,732						838,491
Canada			514,777						562,911						556,120
Australia			490,172						528,703						575,862
Remaining Countries			3,600,136						3,134,577						3,090,948

Information as to our revenues by product and service lines by segment for the years ended December 31, 2022, 2021 and 2020 is as follows:

			GLOBAL RIM BUSINESS						GLOBAL DATA CENTER BUSINESS						CORPORATE AND OTHER						TOTAL CONSOLIDATED
For the Year Ended December 31, 2022
Records Management(1)			$	3,287,237					$	—					$	137,845					$	3,425,082
Data Management(1)			510,107						—						185						510,292
Information Destruction(1)(2)(3)			497,771						—						269,304						767,075
Data Center(1)			—						401,125						—						401,125
For the Year Ended December 31, 2021
Records Management(1)			$	3,074,605					$	—					$	125,571					$	3,200,176
Data Management(1)			529,416						—						—						529,416
Information Destruction(1)(2)(3)			390,967						—						44,074						435,041
Data Center(1)			—						326,898						—						326,898
For the Year Ended December 31, 2020
Records Management(1)			$	2,852,296					$	—					$	101,975					$	2,954,271
Data Management(1)			554,901						—						—						554,901
Information Destruction(1)(2)(3)			341,407						—						17,379						358,786
Data Center(1)			—						279,312						—						279,312

(1)Each of these offerings has a component of revenue that is storage rental related and a component that is service revenue, except for information destruction, which does not have a storage rental component.

(2)Information destruction revenue for our Global RIM Business includes secure shredding services.

(3)Information destruction revenue for Corporate and Other includes product revenue from ITRenew.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(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 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").

In March 2019, in connection with the formation of the MakeSpace JV, 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"). In February 2022, in connection with the formation of the Clutter JV, we terminated the MakeSpace Agreement and entered into a storage and service agreement with the Clutter JV to provide certain storage and related services to the Clutter JV (the "Clutter Agreement").

Revenue recognized in the accompanying Consolidated Statements of Operations under these agreements for the years ended December 31, 2022, 2021 and 2020 is as follows (approximately):

			YEAR ENDED DECEMBER 31,
			2022						2021						2020
Frankfurt JV Agreements(1)			$	15,000					$	19,600					$	400
MakeSpace Agreement and Clutter Agreement(2)			28,500						34,700						33,600

(1)Revenues and expenses associated with the Frankfurt JV Agreements are presented as a component of our Global Data Center Business segment.

(2)Revenues and expenses associated with the MakeSpace Agreement and Clutter Agreement are presented as a component of our Global RIM Business segment.

During the years ended December 31, 2022, 2021 and 2020, the Company had no other related party transactions.

13. RESTRUCTURING AND OTHER TRANSFORMATION

PROJECT MATTERHORN

In September 2022, we announced Project Matterhorn, our global program designed to accelerate the growth of our business. Project Matterhorn investments will focus on transforming our operating model to a global operating model. Project Matterhorn will focus on the formation of a solution-based sales approach that is designed to allow us to optimize our shared services and best practices to better serve our customers' needs. We will be investing to accelerate growth and to capture a greater share of the large, global addressable markets in which we operate. We expect to incur approximately $150,000 in costs annually related to Project Matterhorn from 2023 through 2025. Costs are comprised of (1) restructuring costs, which include (i) site consolidation and other related exit costs, (ii) employee severance costs and (iii) certain professional fees associated with these activities, and (2) other transformation costs, which include professional fees such as project management costs and costs for third party consultants who are assisting in the enablement our growth initiatives. Total costs related to Project Matterhorn during the year ended December 31, 2022 were approximately $41,933 and are included in Restructuring and other transformation in our Consolidated Statement of Operations. There were no Restructuring and other transformation costs related to Project Matterhorn for the years ended December 31, 2021 or 2020.

Restructuring and other transformation related to Project Matterhorn included in the accompanying Consolidated Statement of Operations for the year ended December 31, 2022, is as follows:

			YEAR ENDED DECEMBER 31, 2022
Restructuring			$	13,292
Other transformation			28,641
Restructuring and other transformation			$	41,933

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

13. RESTRUCTURING AND OTHER TRANSFORMATION (CONTINUED)

Restructuring costs for Project Matterhorn, included as a component of Restructuring and other transformation in the accompanying Consolidated Statement of Operations, by segment for the year ended December 31, 2022 are as follows:

			YEAR ENDED DECEMBER 31, 2022
Global RIM Business			$	13,083
Global Data Center Business			—
Corporate and Other			209
Total restructuring costs			$	13,292

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 completed Project Summit. As a result of the program, we 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 restructuring costs of approximately $450,000 that primarily consisted of: (i) employee severance costs; (ii) internal costs associated with the development and implementation of Project Summit initiatives; (iii) 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 (iv) system implementation and data conversion costs.

Restructuring costs for Project Summit are included as a component of Restructuring and other transformation in the accompanying Consolidated Statements of Operations for the years ended December 31, 2021 and 2020, and from the inception of Project Summit through December 31, 2021 is as follows:

						YEAR ENDED DECEMBER 31, 2021						YEAR ENDED DECEMBER 31, 2020						FROM INCEPTION OF PROJECT SUMMIT THROUGH DECEMBER 31, 2021
Employee severance						$	22,809					$	47,349					$	91,008
Professional fees and other						183,617						147,047						358,411
Total restructuring costs						$	206,426					$	194,396					$	449,419

As Project Summit was completed as of December 31, 2021, there were no restructuring costs for Project Summit for the year ended December 31, 2022.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2022

(In thousands, except share and per share data)

13. RESTRUCTURING AND OTHER TRANSFORMATION (CONTINUED)

Restructuring costs for Project Summit included in the accompanying Consolidated Statements of Operations by segment for the years ended December 31, 2021, and 2020 are as follows:

						YEAR ENDED DECEMBER 31, 2021						YEAR ENDED DECEMBER 31, 2020						FROM INCEPTION OF PROJECT SUMMIT THROUGH DECEMBER 31, 2021
Global RIM Business						$	59,033					$	67,140					$	148,073
Global Data Center Business						3,062						1,632						5,000
Corporate and Other						144,331						125,624						296,346
Total restructuring costs						$	206,426					$	194,396					$	449,419

A rollforward of the accrued restructuring costs, which is included as a component of Accrued expenses and other current liabilities in our Consolidated Balance Sheets for December 31, 2021 through December 31, 2022, is as follows:

						EMPLOYEE SEVERANCE						PROFESSIONAL FEES AND OTHER						TOTAL ACCRUED RESTRUCTURING COSTS
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
Payments						(11,989)						(7,728)						(19,717)
Balance as of December 31, 2022						$	—					$	—					$	—

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SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION

DECEMBER 31, 2022

(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 1,143 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.i. to Notes to Consolidated Financial Statements as of December 31, 2022:

Gross Amount of Real Estate Assets, As Reported on Schedule III			$	4,461,195
Add (Deduct) Reconciling Items:
Book value of racking included in leased facilities(1)			1,513,279
Book value of financing leases(2)			338,874
Book value of construction in progress(3)			513,297
Book value of other			(8,829)
Total Reconciling Items			2,356,621
Gross Amount of Real Estate Assets, As Disclosed in Note 2.i.			$	6,817,816

(1)Represents the gross book value of racking installed in our 1,143 leased facilities, which is included in historical book value of racking in Note 2.i., 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.i., 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.i. The historical book value of real estate assets associated with owned buildings that were related to construction in progress as of December 31, 2022 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, 2022:

Accumulated Depreciation of Real Estate Assets, As Reported on Schedule III			$	1,187,390
Add (Deduct) Reconciling Items:
Accumulated Depreciation - non-real estate assets(1)			1,479,074
Accumulated Depreciation - racking in leased facilities(2)			1,119,364
Accumulated Depreciation - financing leases(3)			129,311
Accumulated Depreciation - other			(4,818)
Total Reconciling Items			2,722,931
Accumulated Depreciation, As Reported on Consolidated Balance Sheet			$	3,910,321

(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, 2022 installed in our 1,143 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, 2022 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, 2022

(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)(11)**						ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD**(1)(2)(11)**						DATE OF CONSTRUCTION OR ACQUIRED**(3)**						LIFE ON WHICH DEPRECIATION IN LATEST INCOME STATEMENT IS COMPUTED
North America
United States (Including Puerto Rico)
1420 North Fiesta Blvd, Gilbert, Arizona						1						$	—					$	1,637					$	2,833					$	4,470					$	2,470					2001						Up to 40 years
4802 East Van Buren, Phoenix, Arizona						1						—						15,599						416,451						432,050						10,662						2019						Up to 40 years
615 North 48th Street, Phoenix, Arizona						1						—						423,107						36,832						459,939						75,026						2018			(5)			Up to 40 years
2955 S. 18th Place, Phoenix, Arizona						1						—						12,178						14,819						26,997						7,900						2007						Up to 40 years
4449 South 36th St, Phoenix, Arizona						1						—						7,305						1,146						8,451						5,527						2012						Up to 40 years
8521 E. Princess Drive, Scottsdale, Arizona						1						—						87,865						3,222						91,087						21,085						2018			(5)			Up to 40 years
600 Burning Tree Rd, Fullerton, California						1						—						4,762						3,211						7,973						3,334						2002						Up to 40 years
21063 Forbes St, Hayward, California						1						—						13,407						530						13,937						3,421						2019			(10)			Up to 40 years
1025 North Highland Ave, Los Angeles, California						1						—						10,168						28,266						38,434						17,640						1988						Up to 40 years
1010 - 1006 North Mansfield, Los Angeles, California						1						—						749						6						755						165						2014						Up to 40 years
1350 West Grand Ave, Oakland, California						1						—						15,172						7,630						22,802						16,199						1997						Up to 40 years
1760 North Saint Thomas Circle, Orange, California						1						—						4,576						900						5,476						2,205						2002						Up to 40 years
1915 South Grand Ave, Santa Ana, California						1						—						3,420						1,864						5,284						2,190						2001						Up to 40 years
2680 Sequoia Dr, South Gate, California						1						—						6,329						3,286						9,615						4,563						2002						Up to 40 years
336 Oyster Point Blvd, South San Francisco, California						1						—						15,100						253						15,353						2,954						2019			(10)			Up to 40 years
3576 N. Moline, Aurora, Colorado						1						—						1,583						4,532						6,115						2,444						2001						Up to 40 years
5151 E. 46th Ave, Denver, Colorado						1						—						6,312						724						7,036						2,189						2014						Up to 40 years
11333 E 53rd Ave, Denver, Colorado						1						—						7,403						10,349						17,752						11,186						2001						Up to 40 years
4300 Brighton Boulevard, Denver, Colorado						1						—						116,336						26,321						142,657						23,693						2017						Up to 40 years

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DECEMBER 31, 2022

(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)(11)**						ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD**(1)(2)(11)**						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)
20 Eastern Park Rd, East Hartford, Connecticut						1						$	—					$	7,417					$	2,103					$	9,520					$	6,731					2002						Up to 40 years
Kennedy Road, Windsor, Connecticut						2						—						10,447						32,187						42,634						24,976						2001						Up to 40 years
150-200 Todds Ln, Wilmington, Delaware						1						—						7,226						1,210						8,436						5,538						2002						Up to 40 years
3501 Electronics Way, West Palm Beach, Florida						1						—						4,201						14,624						18,825						8,899						2001						Up to 40 years
5319 Tulane Drive SW, Atlanta, Georgia						1						—						2,808						3,972						6,780						4,392						2002						Up to 40 years
6111 Live Oak Parkway, Norcross, Georgia						1						—						3,542						2,910						6,452						876						2017						Up to 40 years
2425 South Halsted St, Chicago, Illinois						1						—						7,470						1,856						9,326						4,849						2006						Up to 40 years
1301 S. Rockwell St, Chicago, Illinois						1						—						7,947						23,792						31,739						17,946						1999						Up to 40 years
2604 West 13th St, Chicago, Illinois						1						—						404						2,973						3,377						3,008						2001						Up to 40 years
2211 W. Pershing Rd, Chicago, Illinois						1						—						4,264						14,273						18,537						10,210						2001						Up to 40 years
2255 Pratt Blvd, Elk Grove, Illinois						1						—						1,989						4,057						6,046						2,016						2000						Up to 40 years
4175 Chandler Dr Opus No. Corp, Hanover Park, Illinois						1						—						22,048						4,272						26,320						11,712						2014						Up to 40 years
2600 Beverly Drive, Lincoln, Illinois						1						—						1,378						949						2,327						446						2015						Up to 40 years
6090 NE 14th Street, Des Moines, Iowa						1						—						622						545						1,167						513						2003						Up to 40 years
South 7th St, Louisville, Kentucky						4						—						709						14,978						15,687						7,086						Various						Up to 40 years
26 Parkway Drive (fka 133 Pleasant), Scarborough, Maine						1						—						8,337						603						8,940						3,846						2015			(10)			Up to 40 years
8928 McGaw Ct, Columbia, Maryland						1						—						2,198						6,636						8,834						4,530						1999						Up to 40 years

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DECEMBER 31, 2022

(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)(11)**						ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD**(1)(2)(11)**						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)
120 Hampden St, Boston, Massachusetts						1						$	—					$	164					$	945					$	1,109					$	643					2002						Up to 40 years
32 George St, Boston, Massachusetts						1						—						1,820						5,535						7,355						5,890						1991						Up to 40 years
3435 Sharps Lot Rd, Dighton, Massachusetts						1						—						1,911						854						2,765						2,220						1999						Up to 40 years
77 Constitution Boulevard, Franklin, Massachusetts						1						—						5,413						395						5,808						1,156						2014						Up to 40 years
Bearfoot Road, Northboro, Massachusetts						2						—						55,923						15,622						71,545						45,994						Various						Up to 40 years
6601 Sterling Dr South, Sterling Heights, Michigan						1						—						1,294						1,255						2,549						1,387						2002						Up to 40 years
3140 Ryder Trail South, Earth City, Missouri						1						—						3,072						3,497						6,569						2,969						2004						Up to 40 years
Leavenworth St/18th St, Omaha, Nebraska						2						—						2,924						19,623						22,547						9,292						Various						Up to 40 years
4105 North Lamb Blvd, Las Vegas, Nevada						1						—						3,430						9,926						13,356						7,127						2002						Up to 40 years
17 Hydro Plant Rd, Milton, New Hampshire						1						—						6,179						4,587						10,766						7,639						2001						Up to 40 years
3003 Woodbridge Avenue, Edison, New Jersey						1						—						310,404						83,246						393,650						50,472						2018			(5)			Up to 40 years
811 Route 33, Freehold, New Jersey						3						—						38,697						61,427						100,124						61,889						Various						Up to 40 years
51-69 & 77-81 Court St, Newark, New Jersey						1						—						11,734						11,884						23,618						3,620						2015						Up to 40 years
560 Irvine Turner Blvd, Newark, New Jersey						1						—						9,522						4,624						14,146						1,632						2015						Up to 40 years
231 Johnson Ave, Newark, New Jersey						1						—						8,945						3,229						12,174						1,774						2015						Up to 40 years
650 Howard Avenue, Somerset, New Jersey						1						—						3,585						11,948						15,533						7,612						2006						Up to 40 years
100 Bailey Ave, Buffalo, New York						1						—						1,324						11,456						12,780						8,000						1998						Up to 40 years

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

DECEMBER 31, 2022

(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)(11)**						ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD**(1)(2)(11)**						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)
1368 County Rd 8, Farmington, New York						1						$	—					$	2,611					$	5,336					$	7,947					$	5,378					1998						Up to 40 years
County Rd 10, Linlithgo, New York						2						—						102						3,255						3,357						2,042						2001						Up to 40 years
Ulster Ave/Route 9W, Port Ewen, New York						3						—						23,137						12,371						35,508						25,530						2001						Up to 40 years
Binnewater Rd, Rosendale, New York						2						—						5,142						12,029						17,171						8,899						Various						Up to 40 years
220 Wavel St, Syracuse, New York						1						—						2,929						2,847						5,776						3,433						1997						Up to 40 years
826 Church Street, Morrisville, North Carolina						1						—						7,087						332						7,419						2,010						2017						Up to 40 years
1275 East 40th, Cleveland, Ohio						1						—						3,129						606						3,735						2,330						1999						Up to 40 years
7208 Euclid Avenue, Cleveland, Ohio						1						—						3,336						4,144						7,480						4,066						2001						Up to 40 years
4260 Tuller Ridge Rd, Dublin, Ohio						1						—						1,030						1,901						2,931						1,720						1999						Up to 40 years
3366 South Tech Boulevard, Miamisburg, Ohio						1						—						29,092						1,409						30,501						5,298						2018			(5)			Up to 40 years
Branchton Rd, Boyers, Pennsylvania						2						—						21,166						267,940						289,106						88,962						Various						Up to 40 years
800 Carpenters Crossings, Folcroft, Pennsylvania						1						—						2,457						1,055						3,512						2,341						2000						Up to 40 years
Las Flores Industrial Park, Rio Grande, Puerto Rico						1						—						4,185						3,811						7,996						5,209						2001						Up to 40 years
24 Snake Hill Road, Chepachet, Rhode Island						1						—						2,659						2,254						4,913						3,464						2001						Up to 40 years
1061 Carolina Pines Road, Columbia, South Carolina						1						—						11,776						2,643						14,419						4,715						2016			(10)			Up to 40 years
2301 Prosperity Way, Florence, South Carolina						1						—						2,846						1,356						4,202						1,768						2016			(10)			Up to 40 years
Mitchell Street, Knoxville, Tennessee						2						—						718						4,598						5,316						2,647						Various						Up to 40 years
6005 Dana Way, Nashville, Tennessee						2						—						1,827						10,383						12,210						2,478						2000						Up to 40 years

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

DECEMBER 31, 2022

(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)(11)**						ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD**(1)(2)(11)**						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)
Capital Parkway, Carrollton, Texas						3						$	—					$	8,299					$	1,518					$	9,817					$	3,130					2015			(10)			Up to 40 years
1800 Columbian Club Dr, Carrolton, Texas						1						—						19,673						2,162						21,835						11,303						2013						Up to 40 years
1905 John Connally Dr, Carrolton, Texas						1						—						2,174						997						3,171						1,635						2000						Up to 40 years
13425 Branchview Ln, Dallas, Texas						1						—						3,518						3,708						7,226						4,605						2001						Up to 40 years
1819 S. Lamar St, Dallas, Texas						1						—						3,215						2,198						5,413						2,962						2000						Up to 40 years
2000 Robotics Place Suite B, Fort Worth, Texas						1						—						5,328						3,180						8,508						3,595						2002						Up to 40 years
1202 Ave R, Grand Prairie, Texas						1						—						8,354						2,270						10,624						6,783						2003						Up to 40 years
6203 Bingle Rd, Houston, Texas						1						—						3,188						12,308						15,496						9,798						2001						Up to 40 years
2600 Center Street, Houston, Texas						1						—						2,840						2,743						5,583						2,995						2000						Up to 40 years
5707 Chimney Rock, Houston, Texas						1						—						1,032						1,251						2,283						1,252						2002						Up to 40 years
5249 Glenmont Ave, Houston, Texas						1						—						3,467						2,486						5,953						3,302						2000						Up to 40 years
15333 Hempstead Hwy, Houston, Texas						3						—						6,327						38,415						44,742						18,226						2004						Up to 40 years
5757 Royalton Dr, Houston, Texas						1						—						1,795						1,067						2,862						1,528						2000						Up to 40 years
9601 West Tidwell, Houston, Texas						1						—						1,680						2,536						4,216						1,644						2001						Up to 40 years
7800 Westpark, Houston, Texas						1						—						6,323						1,360						7,683						2,335						2015			(10)			Up to 40 years
1665 S. 5350 West, Salt Lake City, Utah						1						—						6,239						5,262						11,501						6,333						2002						Up to 40 years
11052 Lakeridge Pkwy, Ashland, Virginia						1						—						1,709						1,962						3,671						2,238						1999						Up to 40 years
11660 Hayden Road, Manassas, Virginia						1						—						104,824						424,462						529,286						34,901						2020						Up to 40 years
3725 Thirlane Rd. N.W., Roanoke, Virginia						1						—						2,577						287						2,864						1,393						2015			(10)			Up to 40 years
22445 Randolph Dr, Sterling, Virginia						1						—						7,598						4,463						12,061						6,935						2005						Up to 40 years

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

DECEMBER 31, 2022

(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)(11)**						ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD**(1)(2)(11)**						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)
307 South 140th St, Burien, Washington						1						$	—					$	2,078					$	2,869					$	4,947					$	2,776					1999						Up to 40 years
6600 Hardeson Rd, Everett, Washington						1						—						5,399						4,252						9,651						4,247						2002						Up to 40 years
1201 N. 96th St, Seattle, Washington						1						—						4,496						2,655						7,151						4,109						2001						Up to 40 years
4330 South Grove Road, Spokane, Washington						1						—						3,906						888						4,794						886						2015						Up to 40 years
12021 West Bluemound Road, Wauwatosa, Wisconsin						1						—						1,307						2,143						3,450						1,737						1999						Up to 40 years
						115						$	—					$	1,654,931					$	1,810,880					$	3,465,811					$	864,681

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

DECEMBER 31, 2022

(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)(11)**						ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD**(1)(2)(11)**						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					$	4,424					$	8,271					$	4,739					2000						Up to 40 years
195 Summerlea Road, Brampton						1						—						5,403						6,530						11,933						6,480						2000						Up to 40 years
10 Tilbury Court, Brampton						1						—						5,007						17,510						22,517						10,069						2000						Up to 40 years
8825 Northbrook Court, Burnaby						1						—						8,091						2,176						10,267						5,212						2001						Up to 40 years
8088 Glenwood Drive, Burnaby						1						—						4,326						6,834						11,160						5,572						2005						Up to 40 years
5811 26th Street S.E., Calgary						1						—						14,658						9,009						23,667						12,540						2000						Up to 40 years
3905-101 Street, Edmonton						1						—						2,020						975						2,995						1,751						2000						Up to 40 years
68 Grant Timmins Drive, Kingston						1						—						3,639						516						4,155						664						2016						Up to 40 years
3005 Boul. Jean-Baptiste Deschamps, Lachine						1						—						2,751						705						3,456						1,592						2000						Up to 40 years
1655 Fleetwood, Laval						1						—						8,196						19,092						27,288						14,990						2000						Up to 40 years
4005 Richelieu, Montreal						1						—						1,800						2,516						4,316						2,076						2000						Up to 40 years
1209 Algoma Rd, Ottawa						1						—						1,059						7,132						8,191						4,713						2000						Up to 40 years
1650 Comstock Rd, Ottawa						1						—						7,478						(359)						7,119						3,051						2017						Up to 40 years
235 Edson Street, Saskatoon						1						—						829						1,596						2,425						1,047						2008						Up to 40 years
610 Sprucewood Ave, Windsor						1						—						1,243						659						1,902						897						2007						Up to 40 years
						15						$	—					$	70,347					$	79,315					$	149,662					$	75,393
						130						$	—					$	1,725,278					$	1,890,195					$	3,615,473					$	940,074

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

DECEMBER 31, 2022

(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)(11)**						ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD**(1)(2)(11)**						DATE OF CONSTRUCTION OR ACQUIRED**(3)**						LIFE ON WHICH DEPRECIATION IN LATEST INCOME STATEMENT IS COMPUTED
Europe
Gewerbeparkstr. 3, Vienna, Austria						1						$	—					$	6,542					$	12,010					$	18,552					$	5,988					2010						Up to 40 years
Woluwelaan 147, Diegem, Belgium						1						—						2,541						5,852						8,393						4,897						2003						Up to 40 years
Stupničke Šipkovine 62, Zagreb, Croatia						1						—						1,408						1,451						2,859						364						2003						Up to 40 years
Kratitirion 9 Kokkinotrimithia Industrial District, Nicosia, Cyprus						1						—						3,136						2,602						5,738						972						2003						Up to 40 years
Karyatidon 1, Agios Sylas Industrial Area (3rd), Limassol, Cyprus						1						—						1,935						(131)						1,804						292						2018						Up to 40 years
G2-B, Engineering Square IDG Developer’s Area, 6th Oct City Giza, Egypt						1						—						8,984						(2,736)						6,248						225						2021			(7)			Up to 40 years
65 Egerton Road, Birmingham, England						1						—						6,980						1,787						8,767						5,143						2003						Up to 40 years
Otterham Quay Lane, Gillingham, England						9						—						7,418						2,591						10,009						5,328						2004						Up to 40 years
Kemble Industrial Park, Kemble, England						2						—						5,277						6,022						11,299						8,248						2003						Up to 40 years
Gayton Road, Kings Lynn, England						3						—						3,119						1,293						4,412						2,791						2003						Up to 40 years
17 Broadgate, Oldham, England						1						—						4,039						(4)						4,035						2,355						2008						Up to 40 years
Harpway Lane, Sopley, England						1						—						681						1,280						1,961						1,385						2004						Up to 40 years
Unit 1A Broadmoor Road, Swindon, England						1						—						2,636						221						2,857						1,258						2006						Up to 40 years
Jeumont-Schneider, Champagne Sur Seine, France						3						—						1,750						2,312						4,062						2,532						2003						Up to 40 years
Bat I-VII Rue de Osiers, Coignieres, France						4						—						21,318						(1,314)						20,004						6,718						2016			(4)			Up to 40 years
26 Rue de I Industrie, Fergersheim, France						1						—						1,322						(75)						1,247						408						2016			(4)			Up to 40 years
Bat A, B, C1, C2, C3 Rue Imperiale, Gue de Longroi, France						1						—						3,390						569						3,959						1,440						2016			(4)			Up to 40 years
Le Petit Courtin Site de Dois, Gueslin, Mingieres, France						1						—						14,141						(777)						13,364						3,199						2016			(4)			Up to 40 years
ZI des Sables, Morangis, France						1						—						12,407						14,281						26,688						19,182						2004						Up to 40 years

			IRON MOUNTAIN 2022 FORM 10-K			137

Part IV

IRON MOUNTAIN INCORPORATED

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

DECEMBER 31, 2022

(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)(11)**						ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD**(1)(2)(11)**						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					$	(410)					$	5,136					$	1,330					2016			(4)			Up to 40 years
Heinrich Lanz Alee 47, Frankfurt, Germany						1						—						80,951						3,330						84,281						4,257						2021			(8)			Up to 40 years
Gutenbergstrabe 55, Hamburg, Germany						1						—						4,022						538						4,560						1,623						2016			(4)			Up to 40 years
Brommer Weg 1, Wipshausen, Germany						1						—						3,220						1,602						4,822						3,490						2006						Up to 40 years
Warehouse and Offices 4 Springhill, Cork, Ireland						1						—						9,040						2,222						11,262						5,680						2014						Up to 40 years
17 Crag Terrace, Dublin, Ireland						1						—						2,818						638						3,456						1,533						2001						Up to 40 years
Damastown Industrial Park, Dublin, Ireland						1						—						16,034						6,367						22,401						9,732						2012						Up to 40 years
Vareseweg 130, Rotterdam, The Netherlands						1						—						1,357						893						2,250						1,730						2015			(10)			Up to 40 years
Howemoss Drive, Aberdeen, Scotland						2						—						6,970						4,649						11,619						5,263						Various						Up to 40 years
Nettlehill Road, Houston Industrial Estate, Livingston, Scotland						1						—						11,517						24,085						35,602						18,720						2001						Up to 40 years
Av Madrid s/n Poligono Industrial Matillas, Alcala de Henares, Spain						1						—						186						212						398						337						2014						Up to 40 years
Calle Bronce, 37, Chiloeches, Spain						1						—						11,011						3,679						14,690						4,083						2010						Up to 40 years
Calle del Mar Egeo, 4, 28830, San Fernando de Hanares, Madrid, Spain						1						—						93,370						(14,100)						79,270						78						2022			(9)			Up to 40 years
Ctra M.118 , Km.3 Parcela 3, Madrid, Spain						1						—						3,981						5,476						9,457						6,879						2001						Up to 40 years
Plot No. S10501 & S10506 Jebel Ali Free Zone Authority, United Arab Emirates						1						—						17,000						(3,775)						13,225						808						2021			(7)			Up to 40 years
Abanto Ciervava, Spain						2						—						1,053						(124)						929						528						Various						Up to 40 years
						53						$	—					$	377,100					$	82,516					$	459,616					$	138,796

138			IRON MOUNTAIN 2022 FORM 10-K

Table of Contents

Part IV

IRON MOUNTAIN INCORPORATED

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

DECEMBER 31, 2022

(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)(11)**						ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD**(1)(2)(11)**						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					$	318					$	973					$	288					Various						Up to 40 years
Azara 1245, Buenos Aires, Argentina						1						—						166						(166)						—						—						1998						Up to 40 years
Spegazzini, Ezeiza Buenos Aires, Argentina						1						—						12,773						(11,583)						1,190						347						2012						Up to 40 years
Av Ernest de Moraes 815, Bairro Fim do Campo, Jarinu Brazil						1						—						12,562						(4,582)						7,980						2,109						2016			(4)			Up to 40 years
Rua Peri 80, Jundiai, Brazil						1						—						8,894						(3,405)						5,489						1,606						2016			(4)			Up to 40 years
Francisco de Souza e Melo, Rio de Janerio, Brazil						3						—						1,868						8,081						9,949						3,941						Various						Up to 40 years
Hortolandia, Sao Paulo, Brazil						1												24,078						(4,714)						19,364						4,403						2014						Up to 40 years
El Taqueral 99, Santiago, Chile						10						—						2,629						28,743						31,372						12,767						Various						Up to 40 years
Panamericana Norte 18900, Santiago, Chile						7						—						4,001						15,430						19,431						8,089						Various						Up to 40 years
Avenida Prolongacion del Colli 1104, Guadalajara, Mexico						1						—						374						1,654						2,028						1,514						2002						Up to 40 years
Privada Las Flores No. 25 (G3), Guadalajara, Mexico						1						—						905						1,299						2,204						1,154						2004						Up to 40 years
Tula KM Parque de Las, Huehuetoca, Mexico						2						—						19,937						1,383						21,320						5,763						2016			(4)			Up to 40 years
Carretera Pesqueria Km2.5(M3), Monterrey, Mexico						2						—						3,537						4,867						8,404						4,307						2004						Up to 40 years
Lote 2, Manzana A, (T2& T3), Toluca, Mexico						1						—						2,204						6,696						8,900						6,175						2002						Up to 40 years
Prolongacion de la Calle 7 (T4), Toluca, Mexico						1						—						7,544						14,356						21,900						8,561						2007						Up to 40 years
Panamericana Sur, KM 57.5, Lima, Peru						7						—						1,549						584						2,133						1,215						Various						Up to 40 years
Av. Elmer Faucett 3462, Lima, Peru						2						—						4,112						4,657						8,769						7,338						Various						Up to 40 years
Calle Los Claveles-Seccion 3, Lima, Peru						1						—						8,179						28,401						36,580						9,095						2010						Up to 40 years
						45						$	—					$	115,967					$	92,019					$	207,986					$	78,672

			IRON MOUNTAIN 2022 FORM 10-K			139

Part IV

IRON MOUNTAIN INCORPORATED

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

DECEMBER 31, 2022

(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)(11)**						ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD**(1)(2)(11)**						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					$	693					$	2,223					$	593					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						55,773						114,410						15,847						2018			(6)			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					$	67,488					$	174,997					$	29,258
Australia
8 Whitestone Drive, Austins Ferry, Australia						1						—						681						2,442						3,123						590						2012						Up to 40 years
						1						$	—					$	681					$	2,442					$	3,123					$	590
Total						237						$	—					$	2,326,535					$	2,134,660					$	4,461,195					$	1,187,390

(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 1,143 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)Property was acquired in connection with our acquisition of XData Properties, S.L.U.

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

140			IRON MOUNTAIN 2022 FORM 10-K

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Part IV

IRON MOUNTAIN INCORPORATED

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

DECEMBER 31, 2022

(Dollars in thousands)

(11)The following tables present the changes in gross carrying amount of real estate owned and accumulated depreciation for the years ended December 31, 2022 and 2021:

						YEAR ENDED DECEMBER 31,
GROSS CARRYING AMOUNT OF REAL ESTATE						2022						2021
Gross amount at beginning of period						$	4,129,251					$	3,830,489
Additions during period:
Acquisitions						93,370						120,307
Discretionary capital projects						434,395						386,752
Foreign currency translation fluctuations						(28,295)						(51,363)
						499,470						455,696
Deductions during period:
Cost of real estate sold, disposed or written-down						(123,633)						(119,154)
Other adjustments(1)						(43,893)						(37,780)
						(167,526)						(156,934)
Gross amount at end of period						$	4,461,195					$	4,129,251

(1)For the years ended December 31, 2022 and 2021, this includes the cost of racking associated with the facilities sold as part of the sale-leaseback transactions.

						YEAR ENDED DECEMBER 31,
ACCUMULATED DEPRECIATION						2022						2021
Gross amount of accumulated depreciation at beginning of period						$	1,160,490					$	1,097,616
Additions during period:
Depreciation						121,428						147,134
Foreign currency translation fluctuations						(14,664)						(15,135)
						106,764						131,999
Deductions during period:
Amount of accumulated depreciation for real estate assets sold, disposed or written-down						(41,674)						(41,376)
Other adjustments(1)						(38,190)						(27,749)
						(79,864)						(69,125)
Gross amount of end of period						$	1,187,390					$	1,160,490

(1)For the years ended December 31, 2022 and 2021, 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, 2022 was approximately $4,191,073.