filings.toolsItem 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.
339K characters. Original on sec.gov · Markdown
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) | 65 | ||||
| Consolidated Balance Sheets, December 31, 2024 and 2023 | 67 | ||||
| Consolidated Statements of Operations, Years Ended December 31, 2024, 2023 and 2022 | 68 | ||||
| Consolidated Statements of Comprehensive Income (Loss), Years Ended December 31, 2024, 2023 and 2022 | 69 | ||||
| Consolidated Statements of (Deficit) Equity, Years Ended December 31, 2024, 2023 and 2022 | 70 | ||||
| Consolidated Statements of Cash Flows, Years Ended December 31, 2024, 2023 and 2022 | 71 | ||||
| Notes to Consolidated Financial Statements | 72 | ||||
| Financial Statement Schedule III—Schedule of Real Estate and Accumulated Depreciation | 124 |
*(b)*Exhibits filed as part of this report: As listed in the Exhibit Index following the Financial Statement Schedule III-Schedule of Real Estate and Accumulated Depreciation.
| 64 | IRON MOUNTAIN 2024 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, 2024 and 2023, the related consolidated statements of operations, comprehensive income (loss), (deficit) equity, and cash flows, for each of the three years in the period ended December 31, 2024, 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, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.
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, 2024, 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 14, 2025, expressed an unqualified opinion on the Company's internal control over financial reporting.
BASIS FOR OPINION
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
CRITICAL AUDIT MATTER
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
| IRON MOUNTAIN 2024 FORM 10-K | 65 |
Part IV
GOODWILL - ASSET LIFECYCLE MANAGEMENT REPORTING UNIT - 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 the reporting unit to its carrying value. The Company determined the fair value of the Asset Lifecycle Management reporting unit based on the present value of future cash flows (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, and discount rates. Changes in economic and operating conditions impacting these assumptions could result in goodwill impairment in future periods. The goodwill balance allocated to the Asset Lifecycle Management reporting unit was $748.0 million as of October 1, 2024 (goodwill impairment testing date). The fair value of the Asset Lifecycle Management reporting unit exceeded its carrying value as of the measurement date and, therefore, no impairment was recognized.
We identified the evaluation of goodwill for the Asset Lifecycle Management reporting unit for impairment as a critical audit matter because of the significant judgments made by management to estimate the fair value of the Asset Lifecycle Management reporting unit. Performing audit procedures to evaluate the reasonableness of management’s estimates and assumptions related to selection of the discount rate and forecasts of future revenue and operating margin of the Asset Lifecycle Management reporting unit required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists.
HOW THE CRITICAL AUDIT MATTER WAS ADDRESSED IN THE AUDIT
Our audit procedures related to testing the reasonableness of key assumptions within the Discounted Cash Flow Model of the Asset Lifecycle Management reporting unit. The key assumptions include future revenue growth rates, operating margins, and the selection of the discount rate. We performed the following procedures as part of the audit:
-
We evaluated management’s ability to accurately forecast by comparing actual results to management’s historical forecasts.
-
We evaluated the reasonableness of the revenue growth rates and operating margins presented within management’s Discounted Cash Flow Model 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 in which Asset Lifecycle Management operates.
-
With the assistance of our fair value specialists, we evaluated the discount rate, including testing the underlying source information and the mathematical accuracy of the calculation, and developing a range of independent estimates and comparing that to the discount rate selected by management.
-
We tested the effectiveness of controls over the evaluation of goodwill for impairment, including those over the Discounted Cash Flow Model and discount rate.
/s/ DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 14, 2025
We have served as the Company’s auditor since 2002.
| 66 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
| DECEMBER 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| ASSETS | |||||||||||
| Current Assets: | |||||||||||
| Cash and cash equivalents | $ | 155,716 | $ | 222,789 | |||||||
| Accounts receivable (less allowances of $86,712 and $74,762 as of December 31, 2024 and 2023, respectively) | 1,291,379 | 1,259,826 | |||||||||
| Prepaid expenses and other | 244,127 | 252,930 | |||||||||
| Total Current Assets | 1,691,222 | 1,735,545 | |||||||||
| Property, plant and equipment | 11,985,997 | 10,373,989 | |||||||||
| Less—Accumulated depreciation | (4,354,398) | (4,059,120) | |||||||||
| Property, Plant and Equipment, Net | 7,631,599 | 6,314,869 | |||||||||
| Other Assets, Net: | |||||||||||
| Goodwill | 5,083,817 | 5,017,912 | |||||||||
| Customer and supplier relationships and other intangible assets | 1,274,731 | 1,279,800 | |||||||||
| Operating lease right-of-use assets | 2,489,893 | 2,696,024 | |||||||||
| Other | 545,853 | 429,652 | |||||||||
| Total Other Assets, Net | 9,394,294 | 9,423,388 | |||||||||
| Total Assets | $ | 18,717,115 | $ | 17,473,802 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current Liabilities: | |||||||||||
| Current portion of long-term debt | $ | 715,109 | $ | 120,670 | |||||||
| Accounts payable | 678,716 | 539,594 | |||||||||
| Accrued expenses and other current liabilities (includes current portion of operating lease liabilities) | 1,366,568 | 1,250,259 | |||||||||
| Deferred revenue | 326,882 | 325,665 | |||||||||
| Total Current Liabilities | 3,087,275 | 2,236,188 | |||||||||
| Long-term Debt, net of current portion | 13,003,977 | 11,812,500 | |||||||||
| Long-term Operating Lease Liabilities, net of current portion | 2,334,826 | 2,562,394 | |||||||||
| Other Long-term Liabilities | 312,199 | 237,590 | |||||||||
| Deferred Income Taxes | 205,341 | 235,410 | |||||||||
| Commitments and Contingencies | |||||||||||
| Redeemable Noncontrolling Interests | 78,171 | 177,947 | |||||||||
| (Deficit) Equity: | |||||||||||
| Iron Mountain Incorporated Stockholders’ (Deficit) 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 293,592,637 shares and 292,142,739 shares as of December 31, 2024 and 2023, respectively) | 2,936 | 2,921 | |||||||||
| Additional paid-in capital | 4,647,330 | 4,533,691 | |||||||||
| (Distributions in excess of earnings) Earnings in excess of distributions | (4,583,436) | (3,953,808) | |||||||||
| Accumulated other comprehensive items, Net | (569,952) | (371,156) | |||||||||
| Total Iron Mountain Incorporated Stockholders’ (Deficit) Equity | (503,122) | 211,648 | |||||||||
| Noncontrolling Interests | 198,448 | 125 | |||||||||
| Total (Deficit) Equity | (304,674) | 211,773 | |||||||||
| Total Liabilities and (Deficit) Equity | $ | 18,717,115 | $ | 17,473,802 |
The accompanying notes are an integral part of these consolidated financial statements.
| IRON MOUNTAIN 2024 FORM 10-K | 67 |
Part IV
IRON MOUNTAIN INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
| YEAR ENDED DECEMBER 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Revenues: | |||||||||||||||||
| Storage rental | $ | 3,682,259 | $ | 3,370,645 | $ | 3,034,023 | |||||||||||
| Service | 2,467,650 | 2,109,644 | 2,069,551 | ||||||||||||||
| Total Revenues | 6,149,909 | 5,480,289 | 5,103,574 | ||||||||||||||
| Operating Expenses: | |||||||||||||||||
| Cost of sales (excluding depreciation and amortization) | 2,696,549 | 2,357,800 | 2,189,120 | ||||||||||||||
| Selling, general and administrative | 1,339,539 | 1,236,287 | 1,140,577 | ||||||||||||||
| Depreciation and amortization | 900,905 | 776,159 | 727,595 | ||||||||||||||
| Acquisition and Integration Costs | 35,842 | 25,875 | 47,746 | ||||||||||||||
| Restructuring and other transformation | 161,359 | 175,215 | 41,933 | ||||||||||||||
| Loss (gain) on disposal/write-down of property, plant and equipment, net | 6,196 | (12,825) | (93,268) | ||||||||||||||
| Total Operating Expenses | 5,140,390 | 4,558,511 | 4,053,703 | ||||||||||||||
| Operating Income (Loss) | 1,009,519 | 921,778 | 1,049,871 | ||||||||||||||
| Interest Expense, Net (includes Interest Income of $14,672, $12,471 and $8,276 in 2024, 2023 and 2022, respectively) | 721,559 | 585,932 | 488,014 | ||||||||||||||
| Other Expense (Income), Net | 43,422 | 108,640 | (69,781) | ||||||||||||||
| Net Income (Loss) Before Provision (Benefit) for Income Taxes | 244,538 | 227,206 | 631,638 | ||||||||||||||
| Provision (Benefit) for Income Taxes | 60,872 | 39,943 | 69,489 | ||||||||||||||
| Net Income (Loss) | 183,666 | 187,263 | 562,149 | ||||||||||||||
| Less: Net income (loss) attributable to noncontrolling interests | 3,510 | 3,029 | 5,168 | ||||||||||||||
| Net Income (Loss) Attributable to Iron Mountain Incorporated | $ | 180,156 | $ | 184,234 | $ | 556,981 | |||||||||||
| Earnings (Losses) Per Share Attributable to Iron Mountain Incorporated: | |||||||||||||||||
| Basic | $ | 0.61 | $ | 0.63 | $ | 1.92 | |||||||||||
| Diluted | $ | 0.61 | $ | 0.63 | $ | 1.90 | |||||||||||
| Weighted Average Common Shares Outstanding: | |||||||||||||||||
| Basic | 293,365 | 291,936 | 290,812 | ||||||||||||||
| Diluted | 296,234 | 293,965 | 292,444 |
The accompanying notes are an integral part of these consolidated financial statements.
| 68 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(IN THOUSANDS)
| YEAR ENDED DECEMBER 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Net Income (Loss) | $ | 183,666 | $ | 187,263 | $ | 562,149 | |||||||||||
| Other Comprehensive (Loss) Income: | |||||||||||||||||
| Foreign Currency Translation Adjustment | (195,368) | 80,657 | (113,966) | ||||||||||||||
| Change in Fair Value of Derivative Instruments | (1,767) | (2,454) | 9,829 | ||||||||||||||
| Reclassifications from Accumulated Other Comprehensive Items, net | (2,528) | (7,580) | — | ||||||||||||||
| Total Other Comprehensive (Loss) Income | (199,663) | 70,623 | (104,137) | ||||||||||||||
| Comprehensive (Loss) Income | (15,997) | 257,886 | 458,012 | ||||||||||||||
| Comprehensive Income (Loss) Attributable to Noncontrolling Interests | 2,643 | 2,805 | 4,687 | ||||||||||||||
| Comprehensive (Loss) Income Attributable to Iron Mountain Incorporated | $ | (18,640) | $ | 255,081 | $ | 453,325 |
The accompanying notes are an integral part of these consolidated financial statements.
| IRON MOUNTAIN 2024 FORM 10-K | 69 |
Part IV
IRON MOUNTAIN INCORPORATED
CONSOLIDATED STATEMENTS OF (DEFICIT) EQUITY
(IN THOUSANDS, EXCEPT SHARE DATA)
| IRON MOUNTAIN INCORPORATED STOCKHOLDERS’ (DEFICIT) 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, 2021 | $ | 857,068 | 289,757,061 | $ | 2,898 | $ | 4,412,553 | $ | (3,221,152) | $ | (338,347) | $ | 1,116 | $ | 72,411 | |||||||||||||||||||||||||||||||||||
| Issuance of shares under employee stock purchase 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) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive (loss) income | (104,250) | — | — | — | — | (103,656) | (594) | 113 | ||||||||||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||||||
| Issuance and net settlement of shares under employee stock purchase and option plans and stock-based compensation | 65,045 | 1,312,443 | 13 | 65,032 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Changes in equity related to redeemable noncontrolling interests | 970 | — | — | 970 | — | — | — | (1,367) | ||||||||||||||||||||||||||||||||||||||||||
| Parent cash dividends declared | (745,770) | — | — | — | (745,770) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | 70,847 | — | — | — | — | 70,847 | — | (224) | ||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | 184,234 | — | — | — | 184,234 | — | — | 3,029 | ||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests equity contributions and related costs | (346) | — | — | (346) | — | — | — | 24,684 | ||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests dividends | — | — | — | — | — | — | — | (3,855) | ||||||||||||||||||||||||||||||||||||||||||
| Redemption of noncontrolling Interests | — | — | — | — | — | — | — | 60,520 | ||||||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2023 | 211,773 | 292,142,739 | 2,921 | 4,533,691 | (3,953,808) | (371,156) | 125 | 177,947 | ||||||||||||||||||||||||||||||||||||||||||
| Issuance and net settlement of shares under employee stock purchase and option plans and stock-based compensation | 105,941 | 1,449,898 | 15 | 105,926 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Changes in equity related to redeemable noncontrolling interests | (9,529) | — | — | (62,940) | — | — | 53,411 | (105,470) | ||||||||||||||||||||||||||||||||||||||||||
| Parent cash dividends declared | (809,784) | — | — | — | (809,784) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive (loss) income | (198,796) | — | — | — | — | (198,796) | — | (867) | ||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | 181,819 | — | — | — | 180,156 | — | 1,663 | 1,847 | ||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests equity contributions and related costs | 213,910 | — | — | 70,653 | — | — | 143,257 | 7,390 | ||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests dividends | (8) | — | — | — | — | — | (8) | (2,676) | ||||||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2024 | $ | (304,674) | 293,592,637 | $ | 2,936 | $ | 4,647,330 | $ | (4,583,436) | $ | (569,952) | $ | 198,448 | $ | 78,171 |
The accompanying notes are an integral part of these consolidated financial statements.
| 70 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
| YEAR ENDED DECEMBER 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Cash Flows from Operating Activities: | |||||||||||||||||
| Net income (loss) | $ | 183,666 | $ | 187,263 | $ | 562,149 | |||||||||||
| Adjustments to reconcile net income (loss) to cash flows from operating activities: | |||||||||||||||||
| Depreciation | 629,296 | 525,850 | 478,984 | ||||||||||||||
| Amortization (includes amortization of deferred financing costs and discounts of $25,580, $16,859 and $18,044 in 2024, 2023 and 2022, respectively) | 297,189 | 267,168 | 266,655 | ||||||||||||||
| Revenue reduction associated with amortization of customer inducements and data center above- and below-market leases | 5,347 | 7,036 | 8,119 | ||||||||||||||
| Stock-based compensation expense | 118,138 | 73,799 | 56,861 | ||||||||||||||
| (Benefit) provision for deferred income taxes | (41,415) | (35,264) | (55,920) | ||||||||||||||
| Loss (gain) on disposal/write-down of property, plant and equipment, net | 6,196 | (12,825) | (93,268) | ||||||||||||||
| Loss on deconsolidation | — | — | 105,825 | ||||||||||||||
| Loss (gain) associated with the remeasurement of deferred purchase obligations | 29,498 | — | (93,600) | ||||||||||||||
| Loss (gain) associated with the Clutter transactions | — | 38,000 | (35,821) | ||||||||||||||
| Foreign currency transactions and other, net | 41,191 | 103,134 | (19,853) | ||||||||||||||
| (Increase) decrease in assets | (78,282) | (70,287) | (224,641) | ||||||||||||||
| Increase (decrease) in liabilities | 5,884 | 29,693 | (27,795) | ||||||||||||||
| Cash Flows from Operating Activities | 1,196,708 | 1,113,567 | 927,695 | ||||||||||||||
| Cash Flows from Investing Activities: | |||||||||||||||||
| Capital expenditures | (1,791,564) | (1,339,223) | (875,378) | ||||||||||||||
| Cash paid for acquisitions, net of cash acquired | (178,414) | (41,849) | (803,690) | ||||||||||||||
| Acquisition of customer intangibles | (62,386) | (5,874) | (8,205) | ||||||||||||||
| Contract costs | (112,542) | (95,124) | (70,336) | ||||||||||||||
| Investments in joint ventures and other investments, net | (9,834) | (15,830) | (73,233) | ||||||||||||||
| Proceeds from sales of property and equipment and other, net | 17,979 | 53,544 | 170,419 | ||||||||||||||
| Cash Flows from Investing Activities | (2,136,761) | (1,444,356) | (1,660,423) | ||||||||||||||
| Cash Flows from Financing Activities: | |||||||||||||||||
| Repayment of revolving credit facility, term loan facilities and other debt | (14,473,019) | (18,191,921) | (11,593,452) | ||||||||||||||
| Proceeds from revolving credit facility, term loan facilities and other debt | 14,965,010 | 18,386,168 | 12,949,766 | ||||||||||||||
| Net proceeds from sales of senior notes | 1,188,000 | 990,000 | — | ||||||||||||||
| Equity contributions from noncontrolling interests | 230,814 | 24,684 | 29,172 | ||||||||||||||
| Debt repayment and equity distribution to noncontrolling interests | (2,684) | (3,855) | (2,953) | ||||||||||||||
| Repurchase of noncontrolling interest | (35,203) | (400) | (4,519) | ||||||||||||||
| Parent cash dividends | (789,527) | (737,650) | (724,388) | ||||||||||||||
| Payment of deferred purchase obligations | (158,775) | — | — | ||||||||||||||
| Net (payments) proceeds associated with employee stock-based awards | (12,197) | (8,754) | (4,849) | ||||||||||||||
| Other, net | (35,674) | (32,606) | (9,570) | ||||||||||||||
| Cash Flows from Financing Activities | 876,745 | 425,666 | 639,207 | ||||||||||||||
| Effect of Exchange Rates on Cash and Cash Equivalents | (3,765) | (13,885) | (20,510) | ||||||||||||||
| (Decrease) increase in Cash and Cash Equivalents | (67,073) | 80,992 | (114,031) | ||||||||||||||
| Cash and Cash Equivalents, Beginning of Year | 222,789 | 141,797 | 255,828 | ||||||||||||||
| Cash and Cash Equivalents, End of Year | $ | 155,716 | $ | 222,789 | $ | 141,797 | |||||||||||
| Supplemental Information: | |||||||||||||||||
| Cash Paid for Interest | $ | 770,688 | $ | 512,446 | $ | 482,673 | |||||||||||
| Cash Paid for Income Taxes, Net | $ | 90,742 | $ | 89,599 | $ | 99,631 | |||||||||||
| Non-Cash Investing and Financing Activities: | |||||||||||||||||
| Financing Leases and Other | $ | 144,498 | $ | 135,492 | $ | 49,836 | |||||||||||
| Accrued Capital Expenditures | $ | 341,752 | $ | 234,315 | $ | 172,589 | |||||||||||
| Deferred Purchase Obligations and Other Deferred Payments | $ | 268,861 | $ | 18,575 | $ | 193,033 | |||||||||||
| Dividends Payable | $ | 222,649 | $ | 202,392 | $ | 194,272 | |||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
| IRON MOUNTAIN 2024 FORM 10-K | 71 |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2024
(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").
IMI was founded in an underground facility near Hudson, New York in 1951 where it stored business records. Today, we are a global leader in information management services, and we are trusted by more than 240,000 customers in 61 countries, including approximately 95% of the Fortune 1000, to help unlock value and intelligence from their assets through services that transcend the physical and digital worlds. Our broad range of solutions address their information management, digital transformation, information security, data center and asset lifecycle management (“ALM”) needs. Our longstanding commitment to safety, security, sustainability and innovation in support of our customers underpins everything we do. We currently serve customers across an array of market verticals — commercial, legal, financial, healthcare, technology, insurance, life sciences, energy, business services, entertainment and government organizations.
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), (deficit) 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 or of which 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 the 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. CHANGES IN PRESENTATION
Certain items previously reported under specific captions within the statement of cash flows and Note 10 have been reclassified to conform to the current year presentation.
D. 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.
| 72 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. 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.
F. 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 evaluate and monitor the collectability of accounts receivable based on a combination of factors, including historical loss experience, assessments of trends in our aged receivables and credit memo activity, the location of our businesses, the composition of our customer base, our product and service lines, potential future macroeconomic factors, including natural disasters, and reasonable and supportable forecasts for expected future collectability of our outstanding receivables. Continued adjustments will be made, as it becomes evident, should there be any material change to reasonable and supportable forecasts that may impact our likelihood of collection. Our highly diverse global customer base, with no single customer accounting for more than approximately 1% of revenue during the years ended December 31, 2024, 2023 and 2022, 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 | ||||||||||||||||||||||||
| 2024 | $ | 74,762 | $ | 104,130 | $ | 45,123 | $ | (137,303) | $ | 86,712 | |||||||||||||||||||
| 2023 | 54,143 | 92,881 | 32,692 | (104,954) | 74,762 | ||||||||||||||||||||||||
| 2022 | 62,009 | 62,891 | 13,666 | (84,423) | 54,143 |
(1)Primarily consists of the issuance of credit memos, the write-off of accounts receivable and the impact associated with currency translation adjustments.
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. We had no significant concentrations of liquid investments as of December 31, 2024 and 2023. 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.
| IRON MOUNTAIN 2024 FORM 10-K | 73 |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
H. PREPAID EXPENSES AND ACCRUED EXPENSES
Prepaid expenses totaled $131,615 and $126,904 as of December 31, 2024 and 2023, respectively. There were no other items greater than 5% of total current assets included within Prepaid expenses and other as of December 31, 2024 and 2023.
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 | 2024 | 2023 | |||||||||
| Current portion of operating lease liabilities | $ | 315,400 | $ | 291,795 | |||||||
| Accrued compensation and benefits | 244,499 | 242,992 | |||||||||
| Dividends | 222,649 | 202,392 | |||||||||
| Interest | 164,336 | 175,218 | |||||||||
| Deferred purchase obligations, purchase price holdbacks and other | 137,207 | 171,273 | |||||||||
| Other | 282,477 | 166,589 | |||||||||
| Accrued expenses and other current liabilities | $ | 1,366,568 | $ | 1,250,259 | |||||||
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, building improvements and data center infrastructure | 5 to 40 | ||||
| Leasehold improvements | 5 to 20 or life of the lease (whichever is shorter) | ||||
| Racking structures | 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 7 |
Property, plant and equipment (including financing leases in the respective categories), at cost, consist of the following:
| DECEMBER 31, | |||||||||||
| DESCRIPTION | 2024 | 2023 | |||||||||
| Land | $ | 670,529 | $ | 536,780 | |||||||
| Buildings, building improvements and data center infrastructure | 4,768,835 | 3,819,241 | |||||||||
| Leasehold improvements | 1,536,919 | 1,166,810 | |||||||||
| Racking structures | 1,978,923 | 2,054,046 | |||||||||
| Warehouse equipment/vehicles | 644,340 | 526,965 | |||||||||
| Furniture and fixtures | 45,918 | 46,094 | |||||||||
| Computer hardware and software | 751,627 | 601,273 | |||||||||
| Construction in progress | 1,588,906 | 1,622,780 | |||||||||
| Property, plant and equipment | $ | 11,985,997 | $ | 10,373,989 |
Minor maintenance costs are expensed as incurred. Major improvements which (i) extend the life, (ii) increase the capacity or functionality or (iii) 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.
| 74 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(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, 2024, 2023 and 2022, capitalized interest is as follows:
| YEAR ENDED DECEMBER 31, | ||||||||||||||||||||
| 2024 | 2023 | 2022 | ||||||||||||||||||
| Capitalized interest | $ | 63,333 | $ | 44,845 | $ | 14,078 |
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 of costs, including costs incurred for upgrades and enhancements that provide additional functionality to our existing software, generally begins during the application development stage of the project, which occurs after 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. Capitalized internal use software costs are depreciated on a straight-line basis over the expected useful life of the software, commencing when the software is ready for its intended use. Computer software costs that are capitalized are periodically evaluated for impairment.
During the years ended December 31, 2024, 2023 and 2022, capitalized costs associated with the development of internal use computer software projects are as follows:
| YEAR ENDED DECEMBER 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Capitalized costs associated with the development of internal use computer software projects | $ | 69,055 | $ | 64,488 | $ | 44,152 |
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, 2024 and 2023 were $43,844 and $36,602, respectively, and are included in Other Long-term Liabilities in our Consolidated Balance Sheets.
| IRON MOUNTAIN 2024 FORM 10-K | 75 |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
J. LEASES
We lease facilities for certain warehouses, data centers and office spaces. We also have land leases, including those on which certain facilities are located. The majority of our leased facilities are classified as operating leases that, on average, have initial lease terms of five to 10 years, with one or more lease renewal options to extend the lease term. Our lease renewal option terms generally range from one to five years. The exercise of the lease renewal option is at our sole discretion and may contain fixed rent, fair market value based rent or Consumer Price Index rent escalation clauses. We include option periods in the lease term when our failure to renew the lease would result in an economic disincentive, thereby making it reasonably certain that we will renew the lease. We recognize straight line rental expense over the life of the lease and any fair market value or Consumer Price Index rent escalations are recognized as variable lease expense in the period in which the obligation is incurred. In addition, we lease certain vehicles and equipment. Vehicle and equipment leases typically have lease terms ranging from one to seven years.
We account for all leases, both operating and financing, in accordance with Accounting Standards Codification ("ASC") Topic 842, Leases ("ASC 842"). Our accounting policy provides that leases with an initial term of 12 months or less will not be included within the lease right-of-use assets and lease liabilities recognized on our Consolidated Balance Sheets. We 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, 2024 and 2023 are as follows:
| DECEMBER 31, | |||||||||||
| DESCRIPTION | 2024 | 2023 | |||||||||
| Assets: | |||||||||||
| Operating lease right-of-use assets(1) | $ | 2,489,893 | $ | 2,696,024 | |||||||
| Financing lease right-of-use assets, net of accumulated depreciation(2)(3) | 359,265 | 304,600 | |||||||||
| Liabilities: | |||||||||||
| Current | |||||||||||
| Operating lease liabilities | $ | 315,400 | $ | 291,795 | |||||||
| Financing lease liabilities(3) | 128,397 | 39,089 | |||||||||
| Long-term | |||||||||||
| Operating lease liabilities | $ | 2,334,826 | $ | 2,562,394 | |||||||
| Financing lease liabilities(3) | 278,444 | 310,776 |
(1)At December 31, 2024 and 2023, these assets are comprised of approximately 99% real estate related assets (which include land, buildings, data center infrastructure and racking structures) and 1% non-real estate related assets (which include warehouse equipment, vehicles, furniture and fixtures and computer hardware and software).
(2)At December 31, 2024, these assets are comprised of approximately 58% real estate related assets and 42% non-real estate related assets. At December 31, 2023, these assets are comprised of approximately 68% real estate related assets and 32% 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.
| 76 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The components of the lease expense for the years ended December 31, 2024, 2023 and 2022 are as follows:
| YEAR ENDED DECEMBER 31, | |||||||||||||||||
| DESCRIPTION | 2024 | 2023 | 2022 | ||||||||||||||
| Operating lease cost(1) | $ | 682,960 | $ | 660,889 | $ | 574,115 | |||||||||||
| Financing lease cost: | |||||||||||||||||
| Depreciation of financing lease right-of-use assets | $ | 50,548 | $ | 42,089 | $ | 42,708 | |||||||||||
| Interest expense for financing lease liabilities | 21,949 | 18,638 | 17,329 |
(1)Operating lease cost, the majority of which is included in Cost of sales, includes variable lease costs of $163,916, $142,154 and $119,184 for the years ended December 31, 2024, 2023 and 2022, respectively.
Weighted average remaining lease terms and discount rates as of December 31, 2024 and 2023 are as follows:
| DECEMBER 31, 2024 | DECEMBER 31, 2023 | ||||||||||||||||||||||
| OPERATING LEASES | FINANCING LEASES | OPERATING LEASES | FINANCING LEASES | ||||||||||||||||||||
| Remaining Lease Term | 9.9 years | 7.8 years | 10.6 years | 9.2 years | |||||||||||||||||||
| Discount Rate | 6.8 | % | 6.3 | % | 6.6 | % | 6.1 | % |
The estimated minimum future lease payments (receipts) as of December 31, 2024 are as follows:
| YEAR | OPERATING LEASES**(1)** | SUBLEASE INCOME | FINANCING LEASES**(1)** | ||||||||||||||
| 2025 | $ | 479,248 | $ | (5,471) | $ | 143,971 | |||||||||||
| 2026 | 447,698 | (3,469) | 55,849 | ||||||||||||||
| 2027 | 409,142 | (2,980) | 45,534 | ||||||||||||||
| 2028 | 364,352 | (2,135) | 81,501 | ||||||||||||||
| 2029 | 327,061 | (1,331) | 33,958 | ||||||||||||||
| Thereafter | 1,669,671 | (1,402) | 125,841 | ||||||||||||||
| Total minimum lease payments (receipts) | 3,697,172 | $ | (16,788) | 486,654 | |||||||||||||
| Less amounts representing interest or imputed interest | 1,046,946 | 79,813 | |||||||||||||||
| Present value of lease obligations | $ | 2,650,226 | $ | 406,841 |
(1)Estimated minimum future lease payments exclude variable common area maintenance charges, insurance and taxes.
Other information: Supplemental cash flow information relating to our leases for the years ended December 31, 2024, 2023 and 2022 is as follows:
| YEAR ENDED DECEMBER 31, | |||||||||||||||||
| CASH PAID FOR AMOUNTS INCLUDED IN MEASUREMENT OF LEASE LIABILITIES: | 2024 | 2023 | 2022 | ||||||||||||||
| Operating cash flows used in operating leases | $ | 473,474 | $ | 450,412 | $ | 409,163 | |||||||||||
| Operating cash flows used in financing leases (interest) | 21,949 | 18,638 | 17,329 | ||||||||||||||
| Financing cash flows used in financing leases | 54,366 | 52,284 | 44,869 | ||||||||||||||
| NON-CASH ITEMS: | |||||||||||||||||
| Operating lease modifications and reassessments | $ | 29,345 | $ | 86,948 | $ | 179,094 | |||||||||||
| New operating leases (including acquisitions and sale-leaseback transactions) | 118,813 | 306,479 | 540,830 | ||||||||||||||
| IRON MOUNTAIN 2024 FORM 10-K | 77 |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
Loss (gain) on disposal/write-down of property, plant and equipment, net for the years ended December 31, 2024, 2023 and 2022 is as follows:
| YEAR ENDED DECEMBER 31, | |||||||||||
| 2024 | 2023 | 2022 | |||||||||
| Loss (gain) on disposal/write-down of property, plant and equipment, net | $ | 6,196 | $ | (12,825) | $ | (93,268) | |||||
| Primarily consists of(1): | •Losses related to the disposal of assets associated with facility consolidations. | •Gains associated with sale and sale-leaseback transactions of approximately $19,500, of which approximately $18,500 relates to a sale-leaseback transaction of a facility in Singapore during the first quarter of 2023. These gains are partially offset by losses related to the disposal of assets associated with facility consolidations. | •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. |
(1) The gains recognized during the years ended December 31, 2023 and 2022 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. We have performed our annual goodwill impairment review as of October 1, 2024, 2023 and 2022. We concluded that as of October 1, 2024, 2023 and 2022, goodwill was not impaired.
| 78 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
REPORTING UNITS AS OF OCTOBER 1, 2023
Our reporting units at which level we performed our goodwill impairment analysis as of October 1, 2023 were as follows:
| •North America Records and Information Management ("North America RIM") •Europe Records and Information Management ("Europe RIM") •Middle East, North Africa, South Africa and Turkey Information Management ("MENATSA RIM") •Latin America Records and Information Management ("Latin America RIM") | •Asia Pacific Records and Information Management ("APAC RIM") •Entertainment Services •Global Data Center •Fine Arts •ALM |
There were no changes to the composition of our reporting units between October 1, 2023 and December 31, 2023.
GOODWILL BY REPORTING UNIT AS OF DECEMBER 31, 2023
The carrying value of goodwill, net for each of our reporting units described above as of December 31, 2023 is as follows:
| SEGMENT | REPORTING UNIT | CARRYING VALUE AS OF DECEMBER 31, 2023 | ||||||
| Global RIM Business | North America RIM | $ | 2,694,093 | |||||
| Europe RIM | 541,860 | |||||||
| MENATSA RIM | 26,502 | |||||||
| Latin America RIM | 120,119 | |||||||
| APAC RIM | 496,944 | |||||||
| Entertainment Services | 32,427 | |||||||
| Global Data Center Business | Global Data Center | 478,930 | ||||||
| Corporate and Other | Fine Arts | 47,535 | ||||||
| ALM | 579,502 | |||||||
| Total | $ | 5,017,912 |
2024 REPORTING UNIT CHANGES
During 2024, as a result of the realignment of our global managerial structure, we reassessed the composition of our reporting units. The realignment of our global managerial structure did not change the composition of our reportable segments (as described and defined in Note 11). As a result of the reassessment, our businesses that were previously managed under our former MENATSA RIM reporting unit are now managed as part of our "Europe RIM" reporting unit. Additionally, our former Entertainment Services reporting unit is now referred to as "Media and Archive Services" to more accurately reflect the offerings of this business. There were no changes to our other reporting units.
REPORTING UNITS AS OF OCTOBER 1, 2024
Our reporting units at which level we performed our goodwill impairment analysis as of October 1, 2024 were as follows:
| •North America RIM •Europe RIM •Latin America RIM •APAC RIM | •Media and Archive Services •Global Data Center •Fine Arts •ALM |
There were no changes to the composition of our reporting units between October 1, 2024 and December 31, 2024.
| IRON MOUNTAIN 2024 FORM 10-K | 79 |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
GOODWILL BY REPORTING UNIT AS OF DECEMBER 31, 2024
The carrying value of goodwill, net for each of our reporting units described above as of December 31, 2024 is as follows:
| SEGMENT | REPORTING UNIT | CARRYING VALUE AS OF DECEMBER 31, 2024 | ||||||
| Global RIM Business | North America RIM | $ | 2,675,999 | |||||
| Europe RIM | 542,521 | |||||||
| Latin America RIM | 99,599 | |||||||
| APAC RIM | 467,059 | |||||||
| Media and Archive Services | 31,696 | |||||||
| Global Data Center Business | Global Data Center | 469,461 | ||||||
| Corporate and Other | Fine Arts | 47,925 | ||||||
| ALM | 749,557 | |||||||
| Total | $ | 5,083,817 |
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.
The changes in the carrying value of goodwill attributable to each reportable segment for the years ended December 31, 2024 and 2023 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, 2022 | $ | 3,852,946 | $ | 418,502 | $ | 611,286 | $ | 4,882,734 | |||||||||||||||
| Tax deductible goodwill acquired during the year | — | — | 11,928 | 11,928 | |||||||||||||||||||
| Non-tax deductible goodwill acquired during the year | 21,594 | 56,674 | 383 | 78,651 | |||||||||||||||||||
| Fair value and other adjustments | (80) | — | 2,333 | 2,253 | |||||||||||||||||||
| Currency effects | 37,485 | 3,754 | 1,107 | 42,346 | |||||||||||||||||||
| Goodwill balance, net of accumulated amortization, as of December 31, 2023 | 3,911,945 | 478,930 | 627,037 | 5,017,912 | |||||||||||||||||||
| Tax deductible goodwill acquired during the year | — | — | 132,891 | 132,891 | |||||||||||||||||||
| Non-tax deductible goodwill acquired during the year | — | — | 39,646 | 39,646 | |||||||||||||||||||
| Fair value and other adjustments | 372 | (186) | (186) | — | |||||||||||||||||||
| Currency effects | (95,443) | (9,283) | (1,906) | (106,632) | |||||||||||||||||||
| Goodwill balance, net of accumulated amortization, as of December 31, 2024 | $ | 3,816,874 | $ | 469,461 | $ | 797,482 | $ | 5,083,817 | |||||||||||||||
| Accumulated Goodwill Impairment Balance as of December 31, 2023 | $ | 132,409 | $ | — | $ | 26,011 | $ | 158,420 | |||||||||||||||
| Accumulated Goodwill Impairment Balance as of December 31, 2024 | $ | 132,409 | $ | — | $ | 26,011 | $ | 158,420 |
| 80 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 generally 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 the associated contract terms, which range 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 revenue, Permanent Withdrawal Fees that generally equal or exceed the amount of the unamortized Customer Inducement intangible asset.
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. 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
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") are recorded 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.
| IRON MOUNTAIN 2024 FORM 10-K | 81 |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The gross carrying amount and accumulated amortization of our finite-lived intangible assets as of December 31, 2024 and 2023, respectively, are as follows:
| DECEMBER 31, 2024 | DECEMBER 31, 2023 | ||||||||||||||||||||||
| 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) | $ | 2,268,949 | $ | (1,035,846) | $ | 1,233,103 | $ | 2,144,641 | $ | (933,084) | $ | 1,211,557 | |||||||||||
| Customer inducements(1) | 38,782 | (19,706) | 19,076 | 47,565 | (25,562) | 22,003 | |||||||||||||||||
| Data center lease-based intangible assets(1)(2) | 138,714 | (116,162) | 22,552 | 141,628 | (95,422) | 46,206 | |||||||||||||||||
| Third-party commissions asset and other(3) | 86,314 | (51,508) | 34,806 | 77,638 | (39,323) | 38,315 | |||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Data center below-market leases(4) | $ | 10,819 | $ | (7,275) | $ | 3,544 | $ | 10,873 | $ | (5,772) | $ | 5,101 |
(1)Included in Customer and supplier relationship and other intangible assets in the accompanying Consolidated Balance Sheets.
(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.
(4)Included in Other long-term liabilities in the accompanying Consolidated Balance Sheets.
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, 2024, 2023 and 2022 is as follows:
| YEAR ENDED DECEMBER 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Amortization expense included in depreciation and amortization associated with: | |||||||||||||||||
| Customer and supplier relationship intangible assets | $ | 155,872 | $ | 153,128 | $ | 156,779 | |||||||||||
| Data center in-place leases and tenant relationships | 22,304 | 22,322 | 16,955 | ||||||||||||||
| Third-party commissions asset and other | 16,478 | 12,541 | 16,148 | ||||||||||||||
| Revenue reduction associated with amortization of: | |||||||||||||||||
| Customer inducements and data center above-market and below-market leases | $ | 5,347 | $ | 7,036 | $ | 8,119 |
Estimated amortization expense for existing finite-lived intangible assets (excluding Contract Costs, as defined 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 | |||||||||
| 2025 | $ | 178,310 | $ | 4,493 | |||||||
| 2026 | 150,079 | 3,887 | |||||||||
| 2027 | 131,057 | 2,838 | |||||||||
| 2028 | 121,642 | 1,400 | |||||||||
| 2029 | 107,935 | 1,114 | |||||||||
| Thereafter | 601,323 | 1,915 |
| 82 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 and included as a component of Other expense (income), net. See Note 7.
O. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Derivative instruments are measured at fair value and are recorded as either assets or liabilities in our Consolidated Balance Sheets. 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 concurrently with the execution of the derivative instrument. 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. Gains and losses realized as a result of the maturing or termination of our interest rate swaps and cross-currency swaps are reflected as operating cash flows within our Consolidated Statements of Cash Flows. As of December 31, 2024 and 2023, none of our derivative instruments contained credit-risk related contingent features. See Note 6.
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.
| IRON MOUNTAIN 2024 FORM 10-K | 83 |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The assets and liabilities carried at fair value and measured on a recurring basis as of December 31, 2024 and 2023, respectively, are as follows:
| FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2024 USING | |||||||||||||||||||||||
| DESCRIPTION | TOTAL CARRYING VALUE AT DECEMBER 31, 2024 | QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1) | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)****(6) | |||||||||||||||||||
| Money Market Funds(1) | $ | 2,488 | $ | — | $ | 2,488 | $ | — | |||||||||||||||
| Time Deposits(1) | 9,612 | — | 9,612 | — | |||||||||||||||||||
| Trading Securities | 8,144 | 6,390 | (2) | 1,754 | (3) | — | |||||||||||||||||
| Derivative Assets(4) | 28,092 | — | 28,092 | — | |||||||||||||||||||
| Derivative Liabilities(4) | 5,326 | — | 5,326 | — | |||||||||||||||||||
| Deferred Purchase Obligations(5) | 147,055 | — | — | 147,055 |
| FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2023 USING | |||||||||||||||||||||||
| DESCRIPTION | TOTAL CARRYING VALUE AT DECEMBER 31, 2023 | QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1) | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)****(6) | |||||||||||||||||||
| Money Market Funds(1) | $ | 66,008 | $ | — | $ | 66,008 | $ | — | |||||||||||||||
| Time Deposits(1) | 15,913 | — | 15,913 | — | |||||||||||||||||||
| Trading Securities | 9,952 | 6,149 | (2) | 3,803 | (3) | — | |||||||||||||||||
| Derivative Assets(4) | 6,359 | — | 6,359 | — | |||||||||||||||||||
| Derivative Liabilities(4) | 5,769 | — | 5,769 | — | |||||||||||||||||||
| Deferred Purchase Obligations(5) | 208,265 | — | — | 208,265 |
(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, and (ii) cross-currency swap agreements to hedge the variability of exchange rate impacts between the United States dollar and certain of our foreign functional currencies, including the Euro and the Canadian dollar. 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. See Note 6 for additional information on our derivative financial instruments.
(5)Primarily relates to the fair values of the deferred purchase obligations associated with the ITRenew Transaction and the Regency Transaction (each as defined in Note 3).
(6)The following is a rollforward of the Level 3 liabilities presented above for December 31, 2023 through December 31, 2024:
| Balance as of December 31, 2023 | $ | 208,265 | |||||||||||||||
| Additions | 63,700 | ||||||||||||||||
| Payments | (158,775) | ||||||||||||||||
| Other changes | 33,865 | ||||||||||||||||
| Balance as of December 31, 2024 | $ | 147,055 |
| 84 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The level 3 valuations of the deferred purchase obligations were determined utilizing Monte-Carlo models and take into account our forecasted projections as they relate to the underlying performance of the respective businesses. The Monte-Carlo simulation model applied in assessing the fair value of the deferred purchase obligation associated with the ITRenew Transaction incorporates assumptions as to expected gross profits over the 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 arrangement and overall market risks. The Monte-Carlo simulation model applied in assessing the fair value of the deferred purchase obligation associated with the Regency Transaction incorporates assumptions as to expected revenue over the achievement period, including adjustments for volatility and timing, as well as discount rates that account for the risk of the arrangement and overall market risks. Any material change to these assumptions may result in a significantly higher or lower fair value of the related deferred purchase obligation.
There were no material items that were measured at fair value on a non-recurring basis for the years ended December 31, 2024 and 2023 other than (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 recently acquired noncontrolling interests and previously held equity interests (both as disclosed in Note 3); (iv) contributions to our equity method investments; 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 Level 2 and Level 3 inputs, is disclosed in Note 7. Long-term debt is measured at cost in our Consolidated Balance Sheets as of December 31, 2024 and 2023.
Q. NONCONTROLLING INTERESTS
Unaffiliated third parties own noncontrolling interests in certain of our consolidated subsidiaries. The classification of these ownership interests are evaluated under ASC 810, Consolidation and ASC 480, Distinguishing Liabilities from Equity. Ownership interests are classified as equity unless the underlying agreements contain provisions requiring classification as a liability or temporary equity. Noncontrolling interests are presented as a separate component of Iron Mountain's Stockholders’ (Deficit) Equity in the accompanying Consolidated Balance Sheets and Consolidated Statements of (Deficit) Equity.
Certain agreements with our noncontrolling interest shareholders contain put options which allow the noncontrolling interest shareholders to require us to purchase their respective interests in such subsidiaries at certain times and at purchase prices as stipulated in the underlying agreements (generally at fair value). These ownership interests, otherwise known as redeemable noncontrolling interests, are classified as temporary equity in our Consolidated Balance Sheets and Consolidated Statements of (Deficit) Equity. Redeemable noncontrolling interests are reported as temporary equity at the greater of their redemption value or the noncontrolling interest holders’ proportionate share of the underlying subsidiary’s net carrying value. Increases or decreases in the redemption value are offset against Additional Paid-in Capital. Changes in ownership interests that do not result in a loss of control are accounted for as equity transactions. If control is lost, the subsidiary’s assets, liabilities and noncontrolling interests are derecognized, and any resulting gain or loss is recorded in earnings.
The amount of consolidated net income attributable to noncontrolling interests, including redeemable noncontrolling interests, are presented in the accompanying Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income (Loss).
When ownership interests are determined to be mandatorily redeemable, they are classified as liabilities and included as a component of Accrued expenses and other current liabilities or Other long-term liabilities on our Consolidated Balance Sheets, depending on the timing of the obligation.
| IRON MOUNTAIN 2024 FORM 10-K | 85 |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(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, 2024, 2023 and 2022 are as follows:
| FOREIGN CURRENCY TRANSLATION AND OTHER ADJUSTMENTS | CHANGE IN FAIR VALUE OF DERIVATIVE INSTRUMENTS | TOTAL | |||||||||||||||
| 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) | ||||||||||||||
| Other comprehensive income (loss): | |||||||||||||||||
| Foreign currency translation and other adjustments | 80,881 | — | 80,881 | ||||||||||||||
| Change in fair value of derivative instruments | — | (2,454) | (2,454) | ||||||||||||||
| Reclassifications from Accumulated Other Comprehensive Items, net | — | (7,580) | (7,580) | ||||||||||||||
| Total other comprehensive income (loss) | 80,881 | (10,034) | 70,847 | ||||||||||||||
| Balance as of December 31, 2023 | (373,628) | 2,472 | (371,156) | ||||||||||||||
| Other comprehensive (loss) income: | |||||||||||||||||
| Foreign currency translation and other adjustments | (194,501) | — | (194,501) | ||||||||||||||
| Change in fair value of derivative instruments | — | (1,767) | (1,767) | ||||||||||||||
| Reclassifications from Accumulated Other Comprehensive Items, net | — | (2,528) | (2,528) | ||||||||||||||
| Total other comprehensive (loss) income | (194,501) | (4,295) | (198,796) | ||||||||||||||
| Balance as of December 31, 2024 | $ | (568,129) | $ | (1,823) | $ | (569,952) |
| 86 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
S. REVENUES
Our revenues consist of storage rental revenues and 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 of 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) secure shredding of sensitive documents and the subsequent sale of shredded paper for recycling, the price of which can fluctuate from period to period; (3) the decommissioning, data erasure, processing and disposition, and recycling or sale of information technology ("IT") hardware and component assets; (4) digital solutions, including the scanning, imaging and document conversion services of active and inactive records, consulting services and the sale of software as a service; and (5) 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 storage 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. The 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.
From time to time, we make payments to entities that are also customers under a revenue contract. These payments are primarily comprised of (i) Customer Inducements and (ii) payments to customers of our ALM business under revenue sharing arrangements for the remarketing of the customer's disposed IT assets. Customer Inducements do not represent payments for a distinct service, and, as such, are treated as a reduction of the transaction price over periods ranging from one to 10 years. Payments for disposed IT assets are for a distinct good and, as such, are expensed as cost of sales in the period when the asset is sold and the corresponding revenue is recognized.
Certain costs to fulfill or obtain customer contracts and certain initial direct costs of obtaining data center leases, including the costs associated with the initial movement of customer records into physical storage and certain commission expenses, are collectively referred to as "Contract Costs". The following describes our significant Contract 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.
| IRON MOUNTAIN 2024 FORM 10-K | 87 |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
COMMISSIONS
Certain commission payments that are directly associated with obtaining 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. We also apply the practical expedient to expense certain commission payments as incurred when the amortization period for those commission payments is one year or less.
Contract Costs, which are included as a component of Other within Other Assets, Net as of December 31, 2024 and 2023 are as follows:
| DECEMBER 31, 2024 | DECEMBER 31, 2023 | ||||||||||||||||||||||||||||||||||
| DESCRIPTION | GROSS CARRYING AMOUNT | ACCUMULATED AMORTIZATION | NET CARRYING AMOUNT | GROSS CARRYING AMOUNT | ACCUMULATED AMORTIZATION | NET CARRYING AMOUNT | |||||||||||||||||||||||||||||
| Intake Costs asset | $ | 89,057 | $ | (43,783) | $ | 45,274 | $ | 76,150 | $ | (39,617) | $ | 36,533 | |||||||||||||||||||||||
| Commissions asset | 200,149 | (78,955) | 121,194 | 156,639 | (64,279) | 92,360 |
Amortization expense associated with the Intake Costs and Commissions assets for the years ended December 31, 2024, 2023 and 2022 are as follows:
| YEAR ENDED DECEMBER 31, | |||||||||||||||||
| DESCRIPTION | 2024 | 2023 | 2022 | ||||||||||||||
| Intake Costs asset | $ | 22,114 | $ | 18,904 | $ | 18,117 | |||||||||||
| Commissions asset | 54,841 | 43,413 | 40,612 |
Estimated amortization expense for Contract Costs is as follows:
| YEAR | ESTIMATED AMORTIZATION | ||||
| 2025 | $ | 85,924 | |||
| 2026 | 56,997 | ||||
| 2027 | 23,547 | ||||
Deferred revenue liabilities, which also include deferred revenues primarily related to contracts within our Global Data Center Business accounted for under ASC 842 (as described below), are reflected as follows in our Consolidated Balance Sheets:
| DECEMBER 31, | |||||||||||||||||
| DESCRIPTION | LOCATION IN BALANCE SHEET | 2024 | 2023**(1)** | ||||||||||||||
| Deferred revenue - Current(2) | Deferred revenue | $ | 326,882 | $ | 325,665 | ||||||||||||
| Deferred revenue - Long-term(3) | Other Long-term Liabilities | 110,601 | 100,770 |
(1)The beginning balance of current and long-term deferred revenue for the year ended December 31, 2023 was $328,910 and $32,960, respectively.
(2)The current deferred revenue accounted for under ASC 842 is approximately $25,500 and $44,200 as of December 31, 2024 and 2023, respectively.
(3)The long-term deferred revenue accounted for under ASC 842 is approximately $95,000 and $70,900 as of December 31, 2024 and 2023, respectively.
| 88 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(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 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 considered variable lease payments and are recognized as income in the period earned.
Storage rental revenue associated with our Global Data Center Business for the years ended December 31, 2024, 2023 and 2022 are as follows:
| YEAR ENDED DECEMBER 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Storage rental revenue | $ | 606,294 | $ | 474,066 | $ | 372,208 |
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 and thereafter are as follows:
| YEAR | FUTURE MINIMUM LEASE PAYMENTS**(1)** | ||||
| 2025 | $ | 479,296 | |||
| 2026 | 433,670 | ||||
| 2027 | 429,431 | ||||
| 2028 | 399,736 | ||||
| 2029 | 366,612 | ||||
| Thereafter | 2,300,334 |
(1)Future minimum lease payments we expect to receive exclude contingent and variable costs such as taxes, insurance and common area maintenance, which are included in our total storage revenue. These amounts also exclude $1,745,958 in total expected future minimum lease payments for non-cancellable leases that have not yet commenced, which we expect to receive over a weighed average period of 15 years.
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"). Forfeitures are recorded in the period during which they occur. Our non-employee directors are considered employees for purposes of our Employee Stock-Based Awards and the associated reporting of these awards.
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). Other than in specified circumstances, no equity-based award will vest before the first anniversary of the date of grant.
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"). The 2014 Plan permits us to continue to grant awards through May 12, 2031.
| IRON MOUNTAIN 2024 FORM 10-K | 89 |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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, 2024 was 4,984,132.
RETIREMENT ELIGIBLE CRITERIA
Our Employee Stock-Based Awards include 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.
-
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 Selling, general and administrative expenses in the accompanying Consolidated Statements of Operations for the years ended December 31, 2024, 2023 and 2022 is as follows:
| YEAR ENDED DECEMBER 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Stock-based compensation expense | $ | 118,138 | $ | 73,799 | $ | 56,861 | |||||||||||
| Stock-based compensation expense, after tax | 109,252 | 68,309 | 52,600 | ||||||||||||||
| 90 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 exercise prices greater than the market price of the stock on the date of grant. We issue options that become exercisable ratably over a period of 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. Dividends and dividend equivalents are not paid with respect to stock options.
The fair value of stock options granted in 2024, 2023 and 2022 was $22.58, $10.98 and $7.44 per share, respectively. These values were estimated on the date of grant using the Black-Scholes option pricing model. The assumptions used for stock option grants in the years ended December 31, 2024, 2023 and 2022 are as follows:
| YEAR ENDED DECEMBER 31, | |||||||||||||||||
| STOCK OPTION GRANT ASSUMPTIONS | 2024 | 2023 | 2022 | ||||||||||||||
| Expected volatility(1) | 28.6 | % | 29.1 | % | 28.0 | % | |||||||||||
| Risk-free interest rate(2) | 4.25 | % | 3.92 | % | 1.72 | % | |||||||||||
| Expected dividend yield(3) | 3.2 | % | 4.7 | % | 5.0 | % | |||||||||||
| 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 annualized expected per share dividends over the trade price of our common stock at the date of grant.
(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, 2024 is as follows:
| OPTIONS | WEIGHTED AVERAGE EXERCISE PRICE | WEIGHTED AVERAGE REMAINING CONTRACTUAL TERM (YEARS) | AGGREGATE INTRINSIC VALUE | ||||||||||||||||||||
| Outstanding at December 31, 2023 | 4,060,597 | $ | 37.84 | ||||||||||||||||||||
| Granted | 83,054 | 81.03 | |||||||||||||||||||||
| Exercised | (433,732) | 45.95 | |||||||||||||||||||||
| Outstanding at December 31, 2024 | 3,709,919 | $ | 37.85 | 3.89 | $ | 249,538 | |||||||||||||||||
| Options exercisable at December 31, 2024 | 3,451,625 | $ | 36.12 | 3.57 | $ | 238,128 | |||||||||||||||||
| Options expected to vest | 258,294 | $ | 60.93 | 8.22 | $ | 11,410 |
| IRON MOUNTAIN 2024 FORM 10-K | 91 |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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, 2024, 2023 and 2022 are as follows:
| YEAR ENDED DECEMBER 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Fair value of RSUs vested | $ | 29,852 | $ | 32,664 | $ | 27,078 |
A summary of RSU activity for the year ended December 31, 2024 is as follows:
| RSUs | WEIGHTED-AVERAGE GRANT-DATE FAIR VALUE | ||||||||||
| Non-vested at December 31, 2023 | 1,360,264 | $ | 50.24 | ||||||||
| Granted | 712,061 | 83.78 | |||||||||
| Vested | (647,901) | 46.07 | |||||||||
| Forfeited | (230,049) | 62.87 | |||||||||
| Non-vested at December 31, 2024 | 1,194,375 | $ | 70.06 |
PERFORMANCE UNITS
The PUs we issue vest based on our performance against predefined operational performance and relative total shareholder return based targets over a three-year performance period. The vesting is subject to a minimum level of return on invested capital in the third year of the performance period, and the number of PUs earned is based on certain metrics determined at the outset of the performance period.
The number of PUs earned is based on:
-
either (i) the revenue performance for each year averaged at the end of the three-year performance period, or (ii) if (a) absolute Company total shareholder return is positive at the end of the three-year performance period and (b) a predetermined revenue hurdle is achieved in the third year of the performance period, then the revenue performance achieved in the third year of the performance period; and
-
the total return on our common stock relative to the companies comprising the Morgan Stanley Capital International ("MSCI") United States REIT Index.
The number of PUs earned will range from 0% to approximately 350% of the initial award.
| 92 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
All of our PUs will be settled in shares of our common stock and are subject to cliff vesting three years from the date of the original PU grant. As detailed above, PUs granted are subject to the Retirement Criteria. PUs are generally expensed over the three-year performance period, unless they are granted to a recipient who meets the Retirement Criteria, for which expense will be recognized as described above. 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, 2024, 2023 and 2022, we issued 462,501, 641,412 and 435,675 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 estimate the fair value of these awards at the date of grant.
The fair value of earned PUs that vested during the years ended December 31, 2024, 2023 and 2022 is as follows:
| YEAR ENDED DECEMBER 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Fair value of earned PUs that vested | $ | 24,617 | $ | 34,896 | $ | 20,059 |
A summary of PU activity for the year ended December 31, 2024 is as follows:
| ORIGINAL PU AWARDS | PU ADJUSTMENT**(1)** | TOTAL PU AWARDS | WEIGHTED-AVERAGE GRANT-DATE FAIR VALUE | ||||||||||||||||||||
| Non-vested at December 31, 2023 | 804,910 | (323,557) | 481,353 | $ | 43.16 | ||||||||||||||||||
| Granted | 462,501 | — | 462,501 | 92.01 | |||||||||||||||||||
| Prior year grant adjustments for performance(1) | — | 273,653 | 273,653 | 52.33 | |||||||||||||||||||
| Vested | (574,225) | — | (574,225) | 42.87 | |||||||||||||||||||
| Forfeited | (81,254) | — | (81,254) | 76.29 | |||||||||||||||||||
| Non-vested at December 31, 2024 | 611,932 | (49,904) | 562,028 | $ | 83.33 |
(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.
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. The number of shares of Common Stock authorized for issuance under our ESPP is 2,000,000. For the years ended December 31, 2024, 2023 and 2022, there were 82,244, 120,647 and 112,486 shares, respectively, purchased under the ESPP. As of December 31, 2024, we have 788,613 shares available under the ESPP.
As of December 31, 2024, unrecognized compensation cost related to the unvested portion of our Employee Stock-Based Awards, inclusive of our estimated achievement of the performance metrics, was $77,627 and is expected to be recognized over a weighted-average period of 1.9 years.
We issue shares of our common stock for the exercises of stock options, and the vesting of RSUs, PUs and shares of our common stock under our ESPP from unissued reserved shares.
| IRON MOUNTAIN 2024 FORM 10-K | 93 |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 years ended December 31, 2024, 2023 and 2022 were $35,842, $25,875 and $47,746, respectively.
V. OTHER EXPENSE (INCOME), NET
Other expense (income), net for the years ended December 31, 2024, 2023 and 2022 consists of the following:
| YEAR ENDED DECEMBER 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Foreign currency transaction (gains) losses, net(1) | $ | (39,064) | $ | 36,799 | $ | (61,684) | |||||||||||
| Debt extinguishment expense | 5,678 | — | 671 | ||||||||||||||
| Other, net(2)(3)(4) | 76,808 | 71,841 | (8,768) | ||||||||||||||
| Other expense (income), net | $ | 43,422 | $ | 108,640 | $ | (69,781) |
(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) certain foreign currency denominated intercompany obligations of our foreign subsidiaries to us and between our foreign subsidiaries, which are not considered permanently invested, and (ii) borrowings in certain foreign currencies under the Revolving Credit Facility (as defined in Note 7).
(2)Other, net for the year ended December 31, 2024 primarily consists of (i) a loss of approximately $41,000 due to the change in value of our deferred purchase obligations and other deferred payments, (ii) approximately $29,200 in charges associated with the agreement to purchase the remaining interest in the Web Werks JV (as defined and discussed in Note 3) and (iii) losses on our equity method investments.
(3)Other, net for the year ended December 31, 2023 consists primarily of a loss of approximately $38,000 associated with the remeasurement to fair value of our previously held equity interest in the Clutter JV (as defined and discussed in Note 3), as well as losses on our equity method investments and the change in value of our deferred purchase obligations.
(4)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 associated with the ITRenew Transaction 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 3), 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.
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.
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.
| 94 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The calculation of basic and diluted income (loss) per share for the years ended December 31, 2024, 2023 and 2022 is as follows:
| YEAR ENDED DECEMBER 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Net Income (Loss) | $ | 183,666 | $ | 187,263 | $ | 562,149 | |||||||||||
| Less: Net Income (Loss) Attributable to Noncontrolling Interests | 3,510 | 3,029 | 5,168 | ||||||||||||||
| Net Income (Loss) Attributable to Iron Mountain Incorporated (utilized in numerator of Earnings Per Share calculation) | $ | 180,156 | $ | 184,234 | $ | 556,981 | |||||||||||
| Weighted-average shares—basic | 293,365,000 | 291,936,000 | 290,812,000 | ||||||||||||||
| Effect of dilutive potential stock options | 2,241,000 | 1,435,000 | 1,125,068 | ||||||||||||||
| Effect of dilutive potential RSUs and PUs | 628,000 | 594,000 | 507,109 | ||||||||||||||
| Weighted-average shares—diluted | 296,234,000 | 293,965,000 | 292,444,177 | ||||||||||||||
| Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated: | |||||||||||||||||
| Basic | $ | 0.61 | $ | 0.63 | $ | 1.92 | |||||||||||
| Diluted | $ | 0.61 | $ | 0.63 | $ | 1.90 | |||||||||||
| Antidilutive stock options, RSUs and PUs, excluded from the calculation | 225,847 | 81,817 | 305,527 |
Y. NEW ACCOUNTING PRONOUNCEMENTS
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS
In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07, Improvements to Reportable Segments Disclosures ("ASU 2023-07") to provide more detail in the disclosures for reportable segments. The main provisions of ASU 2023-07 requires (i) enhanced disclosures about significant segment expenses, (ii) extension of certain annual disclosures to interim periods and (iii) certain qualitative information on the chief operating decision maker. We adopted ASU 2023-07 on January 1, 2024 on a retrospective basis. The required disclosures are included in Note 11.
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 adopted the guidance in these updates on January 1, 2024, and there was no material impact on our consolidated financial statements.
OTHER AS YET ADOPTED ACCOUNTING PRONOUNCEMENTS
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures ("ASU 2023-09") to provide disaggregated income tax disclosures on the rate reconciliation and income taxes paid. Further, certain requirements related to uncertain tax positions and unrecognized deferred tax liabilities are eliminated. The amendments in this update should be applied on a prospective basis, with retrospective application permitted. ASU 2023-09 will be effective for us on January 1, 2025, with early adoption permitted. We do not expect ASU 2023-09 to have a material impact on our consolidated financial statements.
| IRON MOUNTAIN 2024 FORM 10-K | 95 |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), Disaggregation of Income Statement Expenses ("ASU 2024-03"), which requires disclosure of additional information about specific expense categories in the notes to financial statements on an annual and interim basis. The amendments in this update should be applied on a prospective basis, with retrospective application permitted. The amendments in this update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. We do not expect ASU 2024-03 to have a material impact on our consolidated financial statements.
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, 2024
REGENCY TECHNOLOGIES
On January 3, 2024, in order to expand our ALM business, we acquired 100% of RSR Partners, LLC (doing business as Regency Technologies), an IT asset disposition services provider with operations throughout the United States, for an initial purchase price of approximately $200,000, subject to certain working capital adjustments at, and subsequent to, the closing, with $125,000 paid at closing, funded by borrowings under the Revolving Credit Facility, and the remaining $75,000 (the "January 2025 Payment"), paid in January 2025 (the "Regency Transaction"). The present value of the January 2025 Payment is included as a component of Accrued expenses and other current liabilities in our Consolidated Balance Sheet at December 31, 2024. The agreement for the Regency Transaction also includes a performance-based contingent consideration with a potential earnout range from zero to $200,000 based upon achievement of certain three-year cumulative revenue targets, which would be payable in 2027, if earned. The preliminary fair value estimate of this deferred purchase obligation as of the acquisition date was approximately $78,400. See Note 2.p. for details on the methodology used to establish the fair value. The fair value of the deferred purchase obligation is included as a component of Other long-term liabilities in our Consolidated Balance Sheet at December 31, 2024. Subsequent increases or decreases in the fair value estimate of the deferred purchase obligation, as well as the accretion of the discount to present value, is included as a component of Other expense (income), net in our Consolidated Statements of Operations until the deferred purchase obligation is settled or paid. Subsequent to the acquisition, the results of Regency Technologies are included as a component of Corporate and Other (as defined in Note 11).
B. ACQUISITIONS COMPLETED DURING THE YEAR ENDED DECEMBER 31, 2023
WEB WERKS
On July 7, 2023, we made our final contractual investment in a joint venture with the shareholders of Web Werks India Private Limited (the "Web Werks JV") of approximately 3,750,000 Indian rupees (or approximately $45,300, based upon the exchange rate between the United States dollar and Indian rupee on the closing date of this investment). As a result of this transaction, our interest in the Web Werks JV increased to 63.39%, we assumed control of its board of directors and the financial results of the Web Werks JV are consolidated within our Global Data Center Business segment. We recognized noncontrolling interests of approximately $78,600 based upon the fair value attributable to these interests at the time of this transaction, of which approximately $18,100 of the noncontrolling interests were determined to be a current liability and included as a component of Accrued expenses and other current liabilities on our Consolidated Balance Sheet at December 31, 2023.
| 96 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
3. ACQUISITIONS (CONTINUED)
On July 1, 2024, we entered into an agreement with the minority shareholders of Web Werks India Private Limited to acquire the remaining approximately 36.61% interest in the Web Werks JV in two separate transactions. As a result of the agreement, during the third quarter of 2024, we recognized a charge of approximately $29,200, which is included as a component of Other expense (income), net in our Consolidated Statement of Operations for the year ended December 31, 2024. On July 5, 2024, we completed the acquisition of an approximately 8.55% interest in the Web Werks JV ("Tranche I") for approximately 3,000,000 Indian rupees (or approximately $35,000, based upon the exchange rate between the United States dollar and the Indian rupee on the closing date of Tranche I). Subsequent to the Tranche I payment, our ownership interest in the Web Werks JV is approximately 71.94%. In March 2025, we will be required to make an additional payment of approximately 9,600,000 Indian rupees (or approximately $112,200, based upon the exchange rate between the United States dollar and the Indian rupee as of December 31, 2024) to acquire the remaining approximately 28.06% interest in the Web Werks JV ("Tranche II"). As part of the Tranche II payment in March 2025, we may also make an incremental payment of approximately 1,000,000 Indian rupees (or approximately $11,700, based upon the exchange rate between the United States dollar and the Indian rupee as of December 31, 2024) (the "Incremental Payment") if certain infrastructure goals are achieved before December 31, 2024. We are currently assessing the achievement of these goals. The liability associated with Tranche II and our current estimate of the Incremental Payment is included within Accrued expenses and other current liabilities in our Consolidated Balance Sheet at December 31, 2024.
CLUTTER
In February 2022, the joint venture formed by MakeSpace Labs, Inc. and us (the "MakeSpace JV") entered into an agreement with Clutter, Inc. pursuant to which the equityholders of the MakeSpace JV contributed their ownership interests in the MakeSpace JV, and Clutter, Inc.’s shareholders contributed their ownership interests in Clutter, Inc., to create a newly formed venture (the "Clutter JV"). In exchange for our 49.99% interest in the MakeSpace JV, we received an approximately 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.
On June 29, 2023, in order to further expand our on-demand consumer storage business, we acquired 100% of the outstanding shares of Clutter Intermediate, Inc. and control of all assets of the Clutter JV (collectively, "Clutter") for total consideration of $60,600 (the "Clutter Acquisition"). Our previously held approximately 27% interest in the Clutter JV was remeasured to fair value at the closing date of the Clutter Acquisition. As a result, we recognized a loss of approximately $38,000 to Other, net, a component of Other expense (income), net, during the second quarter of 2023. The financial results of the Clutter JV are now consolidated within our Global RIM Business segment. In October 2023, we sold 15% of the equity interests in Clutter to certain former stakeholders of the Clutter JV for a total consideration of $7,500, which represents the fair value attributable to these interests, which is included as a component of Redeemable Noncontrolling Interests on our Consolidated Balance Sheet at December 31, 2023.
| IRON MOUNTAIN 2024 FORM 10-K | 97 |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
3. ACQUISITIONS (CONTINUED)
C. 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 includes a deferred purchase obligation that 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. From January 25, 2022, we consolidate 100% of the revenues and expenses associated with this business. The current and long-term portions of the deferred purchase obligation are reflected as components of Accrued expenses and other current liabilities and Other long-term liabilities, respectively, in our Consolidated Balance Sheet at December 31, 2023. The deferred purchase obligation is reflected as a component of Accrued expenses and other current liabilities in our Consolidated Balance Sheet at December 31, 2024. 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 expense (income), net in our Consolidated Statements of Operations until the deferred purchase obligation is settled or paid. See Note 2.v.
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 | |||||
| Total Revenues | $ | 5,121,548 | |||
| Income from Continuing Operations | 571,381 |
In addition to our acquisition of ITRenew, we completed certain other acquisitions during the years ended December 31, 2024, 2023 and 2022. The Pro Forma Financial Information does not reflect these acquisitions due to the insignificant impact of these acquisitions on our consolidated results of operations.
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. In January 2025, a payment was made for the milestones that were achieved.
| 98 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(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:
| 2024 | 2023 | 2022 | |||||||||||||||||||||||||||
| TOTAL | TOTAL | ITRENEW | OTHER FISCAL YEAR 2022 ACQUISITIONS | TOTAL | |||||||||||||||||||||||||
| Cash Paid (gross of cash acquired)(1) | $ | 185,882 | $ | 88,635 | $ | 749,596 | $ | 85,170 | $ | 834,766 | |||||||||||||||||||
| Fair Value of Noncontrolling Interests(2) | — | 78,598 | — | — | — | ||||||||||||||||||||||||
| Fair Value of Previously Held Equity Interest(2) | — | 99,718 | — | — | — | ||||||||||||||||||||||||
| Deferred Purchase Obligations, Purchase Price Holdbacks and Other(3) | 134,638 | 4,790 | 275,100 | 13,637 | 288,737 | ||||||||||||||||||||||||
| Settlement of Pre-Existing Relationships | — | 21,641 | — | — | — | ||||||||||||||||||||||||
| Total Consideration | 320,520 | 293,382 | 1,024,696 | 98,807 | 1,123,503 | ||||||||||||||||||||||||
| Fair Value of Identifiable Assets Acquired and Liabilities Assumed: | |||||||||||||||||||||||||||||
| Cash and Cash Equivalents | 9,843 | 49,716 | 30,694 | 963 | 31,657 | ||||||||||||||||||||||||
| Accounts Receivable, Prepaid Expenses and Other Assets | 24,872 | 36,274 | 71,612 | 3,947 | 75,559 | ||||||||||||||||||||||||
| Property, Plant and Equipment | 12,320 | 140,668 | 7,541 | 93,722 | 101,263 | ||||||||||||||||||||||||
| Customer and Supplier Relationship Intangible Assets(4) | 131,463 | 14,330 | 487,600 | 3,672 | 491,272 | ||||||||||||||||||||||||
| Other Intangible Assets | 140 | 8,046 | 47,300 | 1,442 | 48,742 | ||||||||||||||||||||||||
| Operating Lease Right-of-Use Assets | 38,037 | 29,046 | 29,545 | 3,135 | 32,680 | ||||||||||||||||||||||||
| Debt Assumed | — | (22,413) | — | — | — | ||||||||||||||||||||||||
| Accounts Payable, Accrued Expenses and Other Liabilities | (36,786) | (19,323) | (60,157) | (2,069) | (62,226) | ||||||||||||||||||||||||
| Operating Lease Liabilities | (26,925) | (29,046) | (29,545) | (3,135) | (32,680) | ||||||||||||||||||||||||
| Deferred Income Taxes | (4,981) | (4,495) | (100,922) | (10,143) | (111,065) | ||||||||||||||||||||||||
| Total Fair Value of Identifiable Net Assets Acquired | 147,983 | 202,803 | 483,668 | 91,534 | 575,202 | ||||||||||||||||||||||||
| Goodwill Initially Recorded | $ | 172,537 | $ | 90,579 | $ | 541,028 | $ | 7,273 | $ | 548,301 |
(1)Cash paid for acquisitions, net of cash acquired in our Consolidated Statements of Cash Flows includes contingent and other payments of $2,375, $2,930 and $581 for the years ended December 31, 2024, 2023 and 2022, respectively, related to acquisitions made in the years prior to 2024, 2023 and 2022, respectively.
(2)The fair values of the noncontrolling interests and the previously held equity interest were determined to be the respective interest’s proportionate share of the fair value of net assets acquired as of the acquisition date.
(3)In 2024, Deferred purchase obligations, purchase price holdbacks and other consists of the acquisition-date fair values of the deferred purchase obligation associated with the Regency Transaction and the January 2025 Payment. In 2022, Deferred purchase obligations, purchase price holdbacks and other includes $275,100 related to the original fair value estimate of the deferred purchase obligation for the Remaining Interests.
(4)The weighted average lives of customer and supplier relationship intangible assets associated with acquisitions in 2024, 2023 and 2022 were 20 years, four years and 12 years, respectively.
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.
| IRON MOUNTAIN 2024 FORM 10-K | 99 |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(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. The preliminary purchase price allocations that are not finalized as of December 31, 2024 relate to the final assessment of the fair values of property, plant and equipment and intangible assets associated with the acquisitions we closed during the year ended December 31, 2024. 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 2024 and year ended December 31, 2024 were not material to our balance sheet or results from operations.
4. DECONSOLIDATION
On March 24, 2022, as a result of our loss of control, we deconsolidated the businesses included in our acquisition of OSG Records Management (Europe) Limited, excluding Ukraine (the "OSG Deconsolidation"). We recognized a loss of approximately $105,800 associated with the deconsolidation to Other expense (income), 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.
5. INVESTMENTS
The following joint venture is accounted for as an equity method investment and is presented as a component of Other within Other assets, net in our Consolidated Balance Sheets. The carrying value and equity interest in our unconsolidated joint venture at December 31, 2024 and 2023 is as follows:
| DECEMBER 31, 2024 | DECEMBER 31, 2023 | ||||||||||||||||||||||
| CARRYING VALUE | EQUITY INTEREST | CARRYING VALUE | EQUITY INTEREST | ||||||||||||||||||||
| Joint venture with AGC Equity Partners (the "Frankfurt JV") | $ | 61,075 | 20.00 | % | $ | 57,874 | 20.00 | % |
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
We utilize interest rate swap agreements designated as cash flow hedges to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness. Certain of our interest rate swap agreements have notional amounts that will increase with the underlying hedged transaction. Under our interest rate swap agreements, we receive variable rate interest payments associated with the notional amount of each interest rate swap, based upon the one-month Secured Overnight Financing Rate (the "SOFR"), in exchange for the payment of fixed interest rates as specified in the interest rate swap agreements. Our 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.
| 100 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
6. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (CONTINUED)
In April 2023, in anticipation of the discontinuance of the LIBOR reference rate on June 30, 2023, we terminated interest rate swap agreements with notional amounts totaling $350,000 that were indexed to the one-month LIBOR benchmark rate. The terminated swap agreements had associated unrealized gains at the termination date of approximately $10,100. These gains were included in Accumulated other comprehensive items, net and have been reclassified into earnings as reductions to interest expense from the termination date through March 2024, the original maturity date of these interest rate swap agreements.
As of December 31, 2024 and 2023, we have approximately $1,482,000 and $520,000, respectively, in notional value outstanding on our interest rate swap agreements. As of December 31, 2024, our interest rate swap agreements have maturity dates ranging from October 2025 through May 2027.
CROSS-CURRENCY SWAP AGREEMENTS DESIGNATED AS A HEDGE OF NET INVESTMENT
We utilize cross-currency interest rate swaps to hedge the variability of exchange rate impacts between the United States dollar and certain of our foreign functional currencies, including the Euro and the Canadian dollar. As of December 31, 2024, our cross-currency interest rate swap agreements have maturity dates ranging from August 2025 through November 2026.
The notional values of our cross-currency interest rate swaps, by currency, as of December 31, 2024 and 2023 are as follows:
| YEAR ENDED DECEMBER 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Euro | $ | 509,187 | $ | 509,187 | |||||||
| Canadian dollar | 350,000 | — | |||||||||
| $ | 859,187 | $ | 509,187 |
We have designated these cross-currency swap agreements as hedges of net investments in our Euro and Canadian dollar 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.
The fair value of derivative instruments recognized in our Consolidated Balance Sheets as of December 31, 2024 and 2023, by derivative instrument, are as follows:
| DERIVATIVE INSTRUMENTS**(1)** | DECEMBER 31, 2024 | DECEMBER 31, 2023 | |||||||||||||||||||||
| Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||
| Cash Flow Hedges*(2)* | |||||||||||||||||||||||
| Interest rate swap agreements | $ | 1,887 | $ | (5,326) | $ | 1,601 | $ | (3,273) | |||||||||||||||
| Net Investment Hedges*(3)* | |||||||||||||||||||||||
| Cross-currency swap agreements | 26,205 | — | 4,758 | (2,496) |
(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, 2024, $8,891 is include within Prepaid expenses and other, $19,201 is included within Other assets, and $5,326 is included within Other long-term liabilities. As of December 31, 2023, $6,359 is included within Other assets, $2,496 is included within Accrued expenses and other liabilities, and $3,273 is included within Other long-term liabilities.
(2)As of December 31, 2024, cumulative net gains recorded within Accumulated other comprehensive items, net associated with our interest rate swap agreements are $1,823.
(3)As of December 31, 2024, cumulative net gains recorded within Accumulated other comprehensive items, net associated with our cross-currency swap agreements are $73,107, which include $46,902 related to the excluded component of our cross-currency swap agreements.
| IRON MOUNTAIN 2024 FORM 10-K | 101 |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
6. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (CONTINUED)
Unrealized (losses) gains recognized in Accumulated other comprehensive items, net during the years ending December 31, 2024, 2023 and 2022, by derivative instrument, are as follows:
| YEAR ENDED DECEMBER 31, | |||||||||||||||||
| DERIVATIVE INSTRUMENTS | 2024 | 2023 | 2022 | ||||||||||||||
| Cash Flow Hedges | |||||||||||||||||
| Interest rate swap agreements | $ | (1,767) | $ | (2,454) | $ | 20,186 | |||||||||||
| Net Investment Hedges | |||||||||||||||||
| Cross-currency swap agreements | 23,943 | (41,382) | 28,044 | ||||||||||||||
| Cross-currency swap agreements (excluded component) | 16,705 | 21,097 | 9,100 |
Gains (losses) recognized in Net income during the years ending December 31, 2024, 2023 and 2022, by derivative instrument, are as follows:
| YEAR ENDED DECEMBER 31, | ||||||||||||||||||||
| DERIVATIVE INSTRUMENTS | Location of gain (loss) | 2024 | 2023 | 2022 | ||||||||||||||||
| Cash Flow Hedges | ||||||||||||||||||||
| Interest rate swap agreements | Interest expense | $ | 2,528 | $ | 7,580 | $ | — | |||||||||||||
| Net Investment Hedges | ||||||||||||||||||||
| Cross-currency swap agreements (excluded component) | Interest expense | (16,705) | (21,097) | (9,100) |
| 102 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
7. DEBT
Long-term debt is as follows:
| DECEMBER 31, 2024 | DECEMBER 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||
| 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) | $ | 121,000 | $ | (9,253) | $ | 111,747 | $ | 121,000 | $ | — | $ | (4,621) | $ | (4,621) | $ | — | ||||||||||||||||||||||||||||||||||
| Term Loan A(1) | 216,016 | — | 216,016 | 216,016 | 228,125 | — | 228,125 | 228,125 | ||||||||||||||||||||||||||||||||||||||||||
| Term Loan B due 2026(1)(2) | — | — | — | — | 659,298 | (2,498) | 656,800 | 659,750 | ||||||||||||||||||||||||||||||||||||||||||
| Term Loan B due 2031(1)(3) | 1,840,181 | (14,690) | 1,825,491 | 1,850,698 | 1,191,000 | (13,026) | 1,177,974 | 1,200,000 | ||||||||||||||||||||||||||||||||||||||||||
| Virginia 3 Term Loans(4) | 271,079 | (3,013) | 268,066 | 271,079 | 101,218 | (4,641) | 96,577 | 101,218 | ||||||||||||||||||||||||||||||||||||||||||
| Virginia 4/5 Term Loans(4) | 76,535 | (2,752) | 73,783 | 76,535 | 16,338 | (5,892) | 10,446 | 16,338 | ||||||||||||||||||||||||||||||||||||||||||
| Virginia 6 Term Loans(4) | 137,495 | (4,605) | 132,890 | 137,495 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Virginia 7 Term Loans(4) | 32,074 | (7,591) | 24,483 | 32,074 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Australian Dollar Term Loan(4)(5) | 175,813 | (265) | 175,548 | 176,655 | 197,743 | (482) | 197,261 | 199,195 | ||||||||||||||||||||||||||||||||||||||||||
| UK Bilateral Revolving Credit Facility(4) | 175,503 | (1,034) | 174,469 | 175,503 | 178,239 | — | 178,239 | 178,239 | ||||||||||||||||||||||||||||||||||||||||||
| 37/8% GBP Senior Notes due 2025 (the "GBP Notes")(6)(7)(8) | 501,437 | (789) | 500,648 | 490,155 | 509,254 | (1,763) | 507,491 | 489,108 | ||||||||||||||||||||||||||||||||||||||||||
| 47/8% Senior Notes due 2027 (the “47/8% Notes due 2027")(6)(7)(9) | 1,000,000 | (3,910) | 996,090 | 972,500 | 1,000,000 | (5,332) | 994,668 | 967,500 | ||||||||||||||||||||||||||||||||||||||||||
| 51/4% Senior Notes due 2028 (the “51/4% Notes due 2028")(6)(7)(9) | 825,000 | (3,838) | 821,162 | 804,375 | 825,000 | (5,019) | 819,981 | 800,250 | ||||||||||||||||||||||||||||||||||||||||||
| 5% Senior Notes due 2028 (the “5% Notes due 2028")(6)(7)(9) | 500,000 | (2,592) | 497,408 | 481,250 | 500,000 | (3,316) | 496,684 | 478,750 | ||||||||||||||||||||||||||||||||||||||||||
| 7% Senior Notes due 2029 (the "7% Notes due 2029")(6)(7)(9) | 1,000,000 | (8,686) | 991,314 | 1,020,000 | 1,000,000 | (10,813) | 989,187 | 1,027,500 | ||||||||||||||||||||||||||||||||||||||||||
| 47/8% Senior Notes due 2029 (the “47/8% Notes due 2029")(6)(7)(9) | 1,000,000 | (6,871) | 993,129 | 945,000 | 1,000,000 | (8,318) | 991,682 | 945,000 | ||||||||||||||||||||||||||||||||||||||||||
| 51/4% Senior Notes due 2030 (the “51/4% Notes due 2030")(6)(7)(9) | 1,300,000 | (8,399) | 1,291,601 | 1,235,000 | 1,300,000 | (9,903) | 1,290,097 | 1,241,500 | ||||||||||||||||||||||||||||||||||||||||||
| 41/2% Senior Notes due 2031 (the “41/2% Notes")(6)(7)(9) | 1,100,000 | (7,674) | 1,092,326 | 1,001,000 | 1,100,000 | (8,917) | 1,091,083 | 995,500 | ||||||||||||||||||||||||||||||||||||||||||
| 5% Senior Notes due 2032 (the “5% Notes due 2032")(6)(7)(10) | 750,000 | (9,900) | 740,100 | 688,125 | 750,000 | (11,206) | 738,794 | 684,375 | ||||||||||||||||||||||||||||||||||||||||||
| 55/8% Senior Notes due 2032 (the “55/8% Notes")(6)(7)(9) | 600,000 | (4,404) | 595,596 | 570,000 | 600,000 | (4,985) | 595,015 | 567,000 | ||||||||||||||||||||||||||||||||||||||||||
| 61/4% Senior Notes due 2033 (the “61/4% Notes")(6)(7)(9) | 1,200,000 | (14,517) | 1,185,483 | 1,194,000 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Real Estate Mortgages, Financing Lease Liabilities and Other(11) | 614,231 | (1,825) | 612,406 | 614,231 | 519,907 | (403) | 519,504 | 519,907 | ||||||||||||||||||||||||||||||||||||||||||
| Accounts Receivable Securitization Program(4)(12) | 400,000 | (670) | 399,330 | 400,000 | 358,500 | (317) | 358,183 | 358,183 | ||||||||||||||||||||||||||||||||||||||||||
| Total Long-term Debt | 13,836,364 | (117,278) | 13,719,086 | 12,034,622 | (101,452) | 11,933,170 | ||||||||||||||||||||||||||||||||||||||||||||
| Less Current Portion | (715,109) | — | (715,109) | (120,670) | — | (120,670) | ||||||||||||||||||||||||||||||||||||||||||||
| Long-term Debt, Net of Current Portion | $ | 13,121,255 | $ | (117,278) | $ | 13,003,977 | $ | 11,913,952 | $ | (101,452) | $ | 11,812,500 |
(1)The capital stock or other equity interests of our United States subsidiaries representing the substantial majority of our United States 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 2 and 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, 2024 and 2023 (collectively, the "Credit Agreement Collateral").
(2)The amount of debt for the Term Loan B due 2026 (as defined below) reflects an unamortized original issue discount of $452 as of December 31, 2023.
| IRON MOUNTAIN 2024 FORM 10-K | 103 |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
7. DEBT (CONTINUED)
(3)The amount of debt for the Term Loan B due 2031 (as defined below) reflects an unamortized original issue discount of $10,517 and $9,000 as of December 31, 2024 and 2023, respectively.
(4)The fair value (Level 2 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 amount of debt for the AUD Term Loan (as defined below) reflects an unamortized original issue discount of $842 and $1,452 as of December 31, 2024 and 2023, respectively.
(6)The fair values (Level 2 of fair value hierarchy described at Note 2.p.) of these debt instruments are based on quoted market prices for comparable notes on December 31, 2024 and 2023, respectively.
(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 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 IMI and the Note Guarantors. The remainder of our subsidiaries do not guarantee the GBP Notes. The full amount of the GBP Notes is classified within the current portion of long-term debt in our Consolidated Balance Sheet at December 31, 2024.
(9)Collectively, the "Parent Notes". IMI is the direct obligor on the Parent Notes, which are fully and unconditionally guaranteed, on a senior basis, by 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.
(10)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.
(11)We believe the fair value (Level 2 of fair value hierarchy described at Note 2.p.) of this debt approximates its carrying value as these borrowings are based on current market interest rates. This debt includes the following:
| DECEMBER 31, 2024 | DECEMBER 31, 2023 | ||||||||||
| Real estate mortgages(1) | $ | 74,250 | $ | 57,753 | |||||||
| Financing lease liabilities(2) | 406,841 | 349,865 | |||||||||
| Other notes and other obligations(3) | 133,140 | 112,289 | |||||||||
| $ | 614,231 | $ | 519,907 |
(1)Bear interest at approximately 4.4% and 3.6% at December 31, 2024 and 2023, respectively, and includes $50,000 outstanding under our Mortgage Securitization Program at both December 31, 2024 and 2023.
(2)Bear a weighted average interest rate of 5.2% and 6.1% at December 31, 2024 and 2023, respectively.
(3)These notes and other obligations, which were assumed by us as a result of certain acquisitions, bear a weighted average interest rate of 7.2% and 8.5% at December 31, 2024 and 2023, respectively.
(12) The Accounts Receivable Securitization Special Purpose Subsidiaries (as defined below) are the obligors under this program.
A. CREDIT AGREEMENT
Our credit agreement (the "Credit Agreement") consists of a revolving credit facility (the "Revolving Credit Facility"), a term loan A facility (the "Term Loan A") and a term loan B facility (the "Term Loan B due 2031"). The Credit Agreement also included a second term loan B facility (the "Term Loan B due 2026") until its extinguishment in August 2024.
During the year ended December 31, 2024, we took the following actions regarding our Credit Agreement:
-
On June 7, 2024, due to the discontinuance of the Canadian Dollar Offered Rate reference rate on June 28, 2024, we amended the Credit Agreement to update the interest rate benchmark available for Canadian currency borrowings under our Revolving Credit Facility to the Canadian Overnight Repo Rate Average, effective July 1, 2024.
-
On July 2, 2024, we amended the Credit Agreement, which resulted in:
◦an increase in the principal amount of the Term Loan B due 2031 from approximately $1,194,000 to approximately $1,806,700,
◦a decrease in the interest rate of the Term Loan B due 2031 from the SOFR plus 2.25% to the SOFR plus 2.00% and
◦a decrease in the principal amount of our Term Loan B due 2026 from approximately $656,300 to approximately $53,400.
| 104 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
7. DEBT (CONTINUED)
-
In connection with the July 2, 2024 amendment, we paid original issue discount fees of approximately $4,300, and we recorded a charge to Other expense (income), net related to the extinguishment of debt.
-
On August 19, 2024, we:
◦repaid the remaining approximately $53,400 principal balance of the Term Loan B due 2026 and
◦amended the Credit Agreement to increase the principal amount of the Term Loan B due 2031 from approximately $1,806,700 to approximately $1,860,000.
- On November 7, 2024, we amended the Credit Agreement, which resulted in:
◦an extension of the maturity date of the Revolving Credit Facility and the Term Loan A from March 18, 2027 to March 18, 2030,
◦a decrease in the principal amount of the Term Loan A from $250,000 to $218,750,
◦an increase of the borrowing capacity that IMI and certain of its United States and foreign subsidiaries are able to borrow under the Revolving Credit Facility from $2,250,000 to $2,750,000 and
◦the removal of the 10 basis point credit spread adjustment applicable to the Revolving Credit Facility and Term Loan A.
The Revolving Credit Facility enables IMI and certain of its subsidiaries to borrow an aggregate outstanding amount not to exceed $2,750,000 in United States dollars and (subject to sublimits) Canadian dollars. 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, 2030, at which point all obligations become due. The Term Loan A, which was fully drawn as of December 31, 2024, is to be paid in quarterly installments in an amount equal to approximately $2,700 per quarter. The Term Loan B due 2031 is scheduled to mature on January 31, 2031, at which point all obligations become due. The Term Loan B due 2031, which was fully drawn as of December 31, 2024, is to be paid in quarterly installments in an amount equal to approximately $4,700 per quarter.
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 SOFR plus 1.75%. The Term Loan B due 2026 bore interest at the synthetic LIBOR rate plus 1.75% until its extinguishment in August 2024. 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, 2024, we had $121,000, $216,016 and $1,850,698 outstanding under the Revolving Credit Facility, Term Loan A and the Term Loan B due 2031, respectively. As of December 31, 2024, we had various outstanding letters of credit totaling $7,766 under the Revolving Credit Facility. The remaining amount available for borrowing under the Revolving Credit Facility as of December 31, 2024, 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 $2,621,234 (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, 2024 was 6.3%. The interest rates in effect under the Term Loan A as of December 31, 2024 and 2023 were 6.1% and 7.2%, respectively. The interest rate in effect under the Term Loan B due 2026 as of December 31, 2023 was 5.2%. The interest rates in effect under the Term Loan B due 2031 as of December 31, 2024 and 2023 were 6.4% and 7.6%, respectively.
| IRON MOUNTAIN 2024 FORM 10-K | 105 |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
7. DEBT (CONTINUED)
| REVOLVING CREDIT FACILITY $2,750,000 | TERM LOAN A $218,750 | TERM LOAN B DUE 2031 $1,860,000 | ||||||||||||
| Outstanding borrowings $121,000 | Aggregate outstanding principal amount $216,016 | Aggregate outstanding principal amount $1,850,698 | ||||||||||||
| As of December 31, 2024 | 6.1% Interest rate | 6.4% Interest rate | ||||||||||||
| As of December 31, 2024 | As of December 31, 2024 |
B. VIRGINIA CREDIT AGREEMENTS
As our Global Data Center Business continues to expand, we have entered into credit agreements in order to partially finance the construction of various data centers. These agreements primarily consist of term loan facilities with the following terms:
| AGREEMENT | MAXIMUM BORROWING AMOUNT | OUTSTANDING BORROWINGS AS OF DECEMBER 31, 2024 | DIRECT OBLIGOR | CONTRACTUAL INTEREST RATE | UNUSED COMMITMENT FEE | MATURITY DATE**(1)** | |||||||||||||||||||||||||||||
| Virginia 4/5(2) | $ | 204,987 | $ | 76,535 | Iron Mountain Data Centers Virginia 4/5 Subsidiary, LLC | SOFR plus a credit spread adjustment of 0.1% plus 1.625% | 0.49 | % | October 31, 2025 | ||||||||||||||||||||||||||
| Virginia 3(3) | 275,000 | 271,079 | Iron Mountain Data Centers Virginia 3, LLC | SOFR plus 2.50% | 0.75 | % | August 31, 2026 | ||||||||||||||||||||||||||||
| Virginia 7 Term Loans(4) | 300,000 | 32,074 | Iron Mountain Data Centers Virginia 7, LLC | SOFR plus 2.50% | 0.75 | % | April 12, 2027 | ||||||||||||||||||||||||||||
| Virginia 6 Term Loans(5) | 210,000 | 137,495 | Iron Mountain Data Centers Virginia 6, LLC | SOFR plus 2.75% | 0.75 | % | May 3, 2027 |
(1)All obligations will become due on the specified maturity dates. Each agreement includes two one-year options that allow us to extend the initial maturity date, subject to the conditions specified in the agreements.
(2)Iron Mountain Data Centers Virginia 4/5 Subsidiary, LLC, a wholly-owned subsidiary of Iron Mountain Data Centers Virginia 4/5 JV, LP, has a credit agreement that includes a term loan facility (the "Virginia 4/5 Term Loans") and a letter of credit facility (collectively, the "Virginia 4/5 Credit Agreement"). The Virginia 4/5 Credit Agreement is secured by the equity interests and assets of Iron Mountain Data Centers Virginia 4/5 Subsidiary, LLC. As of December 31, 2024 and 2023, the Virginia 4/5 Term Loans have a weighted average interest rate of 5.1% and 6.1%, respectively.
(3)Iron Mountain Data Centers Virginia 3, LLC, a wholly-owned subsidiary of IMI, has a credit agreement that includes a term loan facility (the "Virginia 3 Term Loans") and a letter of credit facility (collectively, the "Virginia 3 Credit Agreement"). The Virginia 3 Credit Agreement is secured by the equity interests and assets of Iron Mountain Data Centers Virginia 3, LLC. As of December 31, 2024 and 2023, the Virginia 3 Term Loans have a weighted average interest rate of 6.7% and 6.2%, respectively.
(4)On April 12, 2024, Iron Mountain Data Centers Virginia 7, LLC, a wholly-owned subsidiary of Iron Mountain Data Centers Virginia 6/7 JV, LLC, entered into a credit agreement (the "Virginia 7 Credit Agreement"). The Virginia 7 Credit Agreement consists of a term loan facility (the "Virginia 7 Term Loans") and a letter of credit facility. The Virginia 7 Credit Agreement is secured by the equity interests and assets of Iron Mountain Data Centers Virginia 7, LLC. As of December 31, 2024, the interest rate in effect under the Virginia 7 Credit Agreement was 7.0%.
(5)On May 3, 2024, Iron Mountain Data Centers Virginia 6, LLC, a wholly-owned subsidiary of Iron Mountain Data Centers Virginia 6/7 JV, LLC, entered into a credit agreement (the "Virginia 6 Credit Agreement"). The Virginia 6 Credit Agreement consists of a term loan facility (the "Virginia 6 Term Loans") and a letter of credit facility. The Virginia 6 Credit Agreement is secured by the equity interests and assets of Iron Mountain Data Centers Virginia 6, LLC. As of December 31, 2024, the interest rate in effect under the Virginia 6 Credit Agreement was 7.1%.
| 106 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
7. DEBT (CONTINUED)
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.
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 | ||||||||||||||||||||||||||||
| 7% Notes due 2029 | $ | 1,000,000 | IMI | February 15, 2029 | 7% | February 15 and August 15 | August 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 | ||||||||||||||||||||||||||||
| 61/4% Notes | $ | 1,200,000 | IMI | January 15, 2033 | 61/4% | January 15 and July 15 | December 6, 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 2024 OFFERING
On December 6, 2024, IMI completed a private offering of:
| SERIES OF NOTES | AGGREGATE PRINCIPAL AMOUNT | ||||
| 61/4% Notes | $ | 1,200,000 |
The 61/4% Notes were issued at 100% of par. The total net proceeds of approximately $1,188,000 from the issuance, after deducting the initial purchasers' commissions, were used to repay a portion of the outstanding borrowings under the Revolving Credit Facility.
| IRON MOUNTAIN 2024 FORM 10-K | 107 |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
7. DEBT (CONTINUED)
D. AUSTRALIAN DOLLAR TERM LOAN
Iron Mountain Australia Group Pty, Ltd., 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. The AUD Term Loan bears interest at BBSY (an Australian benchmark variable interest rate) plus 3.625%. The AUD Term Loan is guaranteed by Iron Mountain Australia Group Pty, Ltd. and certain other Australian subsidiaries (the "Australia Group Guarantors") and by the guarantors of the Credit Agreement. The AUD Term Loan is secured by the capital stock and assets of the Australia Group Guarantors and by the Credit Agreement Collateral. The AUD Term Loan is scheduled to mature on September 30, 2026, at which point all obligations become due.
| As of December 31, 2024, we had 284,727 Australian dollars (or $176,655, based upon the exchange rate between the United States dollar and the Australian dollar as of December 31, 2024) outstanding on the AUD Term Loan. As of December 31, 2023, we had 292,422 Australian dollars (or $199,195, based upon the exchange rate between the United States dollar and the Australian dollar as of December 31, 2023) outstanding on the AUD Term Loan. The interest rate in effect under the AUD Term Loan was 8.1% and 8.0% as of December 31, 2024 and 2023, respectively. | OUTSTANDING BORROWINGS AU$284,727 | ||||||||||||||||
| 8.1% Interest rate | |||||||||||||||||
| As of December 31, 2024 |
E. UK BILATERAL REVOLVING CREDIT FACILITY
| IM UK and Iron Mountain (UK) Data Centre Limited, wholly owned subsidiaries of IMI (collectively, the "UK Borrowers"), have a British pounds sterling Revolving Credit Facility (the "UK Bilateral Revolving Credit Facility"). 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. 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 is secured by certain properties in the United Kingdom. The UK Bilateral Revolving Credit Facility bears interest at the Sterling Overnight Index Average plus 2.0%. On September 10, 2024, the UK Borrowers amended the UK Bilateral Revolving Credit Facility to extend the maturity date from September 24, 2025 to September 24, 2026. The UK Bilateral Revolving Credit Facility was fully drawn as of December 31, 2024. The interest rate in effect under the UK Bilateral Revolving Credit Facility was 7.0% and 7.3% as of December 31, 2024 and 2023, respectively. | MAXIMUM AMOUNT £140,000 OPTIONAL ADDITIONAL COMMITMENTS £125,000 7.0% Interest rate As of December 31, 2024 | ||||||||||||||||
| 108 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(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. Iron Mountain Information Management, LLC 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. The Accounts Receivable Securitization Program is secured by a substantial majority of our net receivables in the United States.
| On June 14, 2024, we amended the Accounts Receivable Securitization Program to (i) increase the maximum borrowing capacity from $360,000 to $400,000 and (ii) extend the maturity date from July 1, 2025 to July 1, 2027, at which point all obligations become due. As of December 31, 2024 and 2023, the amount outstanding under the Accounts Receivable Securitization Program was $400,000 and $358,500, respectively. The interest rate in effect under the Accounts Receivable Securitization Program was 5.6% and 6.4% as of December 31, 2024 and 2023, respectively. We have the option to increase the borrowing capacity by $75,000. 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 $400,000 | ||||||||||
| OUTSTANDING BORROWINGS $400,000 5.6% Interest rate As of December 31, 2024 | |||||||||||
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 ING Bank NV (doing business as Bank Mendes Gans), 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, 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. 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, 2024 and 2023 are reflected as Cash and cash equivalents in our Consolidated Balance Sheets.
| IRON MOUNTAIN 2024 FORM 10-K | 109 |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
7. DEBT (CONTINUED)
H. LETTERS OF CREDIT
As of December 31, 2024, we had outstanding letters of credit totaling $64,147, of which $7,766 reduce our borrowing capacity under the Revolving Credit Facility (as described above). The letters of credit expire at various dates between March 2025 and May 2027.
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 earnings before income, taxes, depreciation and amortization ("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 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, 2024. Noncompliance with these leverage and fixed charge coverage ratios would have a material adverse effect on our financial condition and liquidity.
J. MATURITIES OF LONG-TERM DEBT (GROSS OF DISCOUNTS) ARE AS FOLLOWS:
| YEAR | AMOUNT | ||||
| 2025 | $ | 715,109 | |||
| 2026 | 847,189 | ||||
| 2027 | 1,653,222 | ||||
| 2028 | 1,429,616 | ||||
| 2029 | 2,078,681 | ||||
| Thereafter | 7,123,905 | ||||
| 13,847,722 | |||||
| Net Discounts | (11,358) | ||||
| Net Deferred Financing Costs | (117,278) | ||||
| Total Long-term Debt (including current portion) | $ | 13,719,086 |
| 110 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
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)** | ||||
| 2025 | $ | 74,975 | |||
| 2026 | 50,559 | ||||
| 2027 | 94,489 | ||||
| 2028 | 28,174 | ||||
| 2029 | 10,201 | ||||
| Thereafter | 9,483 | ||||
| $ | 267,881 |
(1)Purchase commitments (i) include obligations related principally to software maintenance and support services and (ii) exclude our operating and financing lease obligations (see Note 2.j.) and our deferred purchase obligations (see Note 2.p.).
In addition to the above, as of December 31, 2024, we have contractual commitments of approximately $886,900 for future construction costs associated with the expansion of our Global Data Center Business that are expected to be incurred over the next one to two years.
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, 2024 and 2023, there were approximately $45,200 and $42,500, 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.
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 $11,000 over the next several years.
| IRON MOUNTAIN 2024 FORM 10-K | 111 |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
9. STOCKHOLDERS' EQUITY MATTERS
DIVIDENDS
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 2022, 2023 and 2024, our board of directors declared the following dividends:
| DECLARATION DATE | DIVIDEND PER SHARE | RECORD DATE | TOTAL AMOUNT | PAYMENT DATE | |||||||||||||||||||
| 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 | |||||||||||||||||||
| February 23, 2023 | 0.6185 | March 15, 2023 | 180,339 | April 5, 2023 | |||||||||||||||||||
| May 4, 2023 | 0.6185 | June 15, 2023 | 180,493 | July 6, 2023 | |||||||||||||||||||
| August 3, 2023 | 0.6500 | September 15, 2023 | 189,730 | October 5, 2023 | |||||||||||||||||||
| November 2, 2023 | 0.6500 | December 15, 2023 | 189,886 | January 4, 2024 | |||||||||||||||||||
| February 22, 2024 | 0.6500 | March 15, 2024 | 190,506 | April 4, 2024 | |||||||||||||||||||
| May 2, 2024 | 0.6500 | June 17, 2024 | 190,643 | July 5, 2024 | |||||||||||||||||||
| August 1, 2024 | 0.7150 | September 16, 2024 | 209,776 | October 3, 2024 | |||||||||||||||||||
| November 6, 2024 | 0.7150 | December 16, 2024 | 209,913 | January 7, 2025 |
On February 13, 2025, we declared a dividend to our stockholders of record as of March 17, 2025 of $0.7850 per share, payable on April 4, 2025.
During the years ended December 31, 2024, 2023 and 2022, 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, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Declared distributions | $ | 800,838 | $ | 740,448 | $ | 719,098 | |||||||||||
| Amount per share each distribution represents based on weighted average number of common shares outstanding | 2.73 | 2.54 | 2.47 |
| 112 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
9. STOCKHOLDERS’ EQUITY MATTERS (CONTINUED)
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, 2024, 2023 and 2022, the dividends we paid on our common shares were classified as follows:
| YEAR ENDED DECEMBER 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Nonqualified ordinary dividends | 82.6 | % | 98.2 | % | 90.4 | % | |||||||||||
| Qualified ordinary dividends(1) | — | % | 0.8 | % | — | % | |||||||||||
| Capital gains(2) | — | % | — | % | 9.6 | % | |||||||||||
| Return of capital | 17.4 | % | 1.0 | % | — | % | |||||||||||
| 100.0 | % | 100.0 | % | 100.0 | % |
(1)During the year ended December 31, 2023, the percentage of our dividends that was classified as qualified ordinary dividends for federal income tax purposes primarily related to the distribution of historical C corporation earnings and profits during the year ended December 31, 2023.
(2)During the year ended December 31, 2022, the percentage of our dividends that was classified as capital gains primarily related to the sale of land and buildings in the United States and Canada.
NONCONTROLLING INTERESTS
During the quarter ended September 30, 2024, a put option available to our partner in our Iron Mountain Data Centers Virginia 4/5 JV, LP joint venture expired, triggering a change in the presentation of the related noncontrolling interest. Prior to September 30, 2024, the noncontrolling interest of approximately $53,400 was presented as Redeemable noncontrolling interests in our Consolidated Balance Sheets. Our partner's interest is now presented as Noncontrolling interests in our Consolidated Balance Sheet.
During the quarter ended September 30, 2024, we entered into an agreement with a partner to form our Iron Mountain Data Centers Virginia 6/7 JV, LLC joint venture, which resulted in an initial Noncontrolling interest of approximately $103,100 recorded in our Consolidated Balance Sheet at September 30, 2024.
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.
| IRON MOUNTAIN 2024 FORM 10-K | 113 |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
10. INCOME TAXES (CONTINUED)
The significant components of our deferred tax assets and deferred tax liabilities as of December 31, 2024 and 2023 are presented below:
| DECEMBER 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Deferred Tax Assets: | |||||||||||
| Accrued liabilities and other adjustments | $ | 156,349 | $ | 100,476 | |||||||
| Net operating loss carryforwards | 168,773 | 158,363 | |||||||||
| Valuation allowance | (132,714) | (103,897) | |||||||||
| 192,408 | 154,942 | ||||||||||
| Deferred Tax Liabilities: | |||||||||||
| Other assets, principally due to differences in amortization | (185,301) | (220,218) | |||||||||
| Property, plant and equipment, principally due to differences in depreciation | (63,192) | (90,156) | |||||||||
| Other | (122,844) | (65,909) | |||||||||
| (371,337) | (376,283) | ||||||||||
| Net deferred tax (liability) asset | $ | (178,929) | $ | (221,341) |
The deferred tax assets and deferred tax liabilities as of December 31, 2024 and 2023 are presented below:
| DECEMBER 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Noncurrent deferred tax assets (Included in Other, a component of Other assets, net) | $ | 26,412 | $ | 14,069 | |||||||
| Noncurrent deferred tax liabilities | (205,341) | (235,410) |
At December 31, 2024, we have federal net operating loss carryforwards of $95,543 and disallowed interest expense carryforwards of $152,156, both of which can be carried forward indefinitely, and of which $89,178 and $68,745, respectively, are expected to be realized to reduce future federal taxable income. We have assets for foreign net operating losses of $146,616 and foreign disallowed interest expense carryforwards of $17,746, with various expiration dates (and in some cases no expiration date), subject to valuation allowances of approximately 72.0% and 46.5%, respectively. 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.
A rollforward of the valuation allowance is as follows:
| YEAR ENDED DECEMBER 31, | BALANCE AT BEGINNING OF THE YEAR | CHARGED (CREDITED) TO EXPENSE | OTHER INCREASES/(DECREASES)****(1)(2) | BALANCE AT END OF THE YEAR | |||||||||||||||||||
| 2024 | $ | 103,897 | $ | 37,018 | $ | (8,201) | $ | 132,714 | |||||||||||||||
| 2023 | 47,514 | 4,855 | 51,528 | 103,897 | |||||||||||||||||||
| 2022 | 51,744 | (1,333) | (2,897) | 47,514 |
(1)Other decreases and increases in valuation allowances are primarily related to changes in foreign currency exchange rates and prior year acquisitions.
(2)Prior to 2023, certain of our non-United States tax loss carryforwards were determined to have a remote possibility of realization and therefore were not reported in the table above. In connection with the implementation of the Organization for Economic Co-operation and Development (the "OECD") global minimum tax initiative known as Pillar Two, any existing deferred taxes not disclosed in our 2023 financial statements will not be available in the future to reduce tax otherwise due under Pillar Two. Accordingly, beginning in 2023, we are disclosing in the above table the tax effects of these non-United States tax loss carryforwards offset with a full valuation allowance.
| 114 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
10. INCOME TAXES (CONTINUED)
The components of net income (loss) before provision (benefit) for income taxes for the years ended December 31, 2024, 2023 and 2022 are as follows:
| YEAR ENDED DECEMBER 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| United States | $ | 56,617 | $ | 76,012 | $ | 449,241 | |||||||||||
| Canada | 153,450 | 111,331 | 103,826 | ||||||||||||||
| Other Foreign | 34,471 | 39,863 | 78,571 | ||||||||||||||
| Net income (loss) before provision (benefit) for income taxes | $ | 244,538 | $ | 227,206 | $ | 631,638 |
The provision (benefit) for income taxes for the years ended December 31, 2024, 2023 and 2022 consist of the following components:
| YEAR ENDED DECEMBER 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Federal—current | $ | 5,205 | $ | 1,255 | $ | 24,331 | |||||||||||
| Federal—deferred | (2,394) | (18,488) | (30,581) | ||||||||||||||
| State—current | 914 | 1,544 | 8,553 | ||||||||||||||
| State—deferred | (3,731) | (4,630) | (3,728) | ||||||||||||||
| Foreign—current | 96,168 | 72,408 | 92,525 | ||||||||||||||
| Foreign—deferred | (35,290) | (12,146) | (21,611) | ||||||||||||||
| Provision (Benefit) for Income Taxes | $ | 60,872 | $ | 39,943 | $ | 69,489 |
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, 2024, 2023 and 2022, respectively, is as follows:
| YEAR ENDED DECEMBER 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Computed "expected" tax provision | $ | 51,353 | $ | 47,713 | $ | 132,644 | |||||||||||
| Changes in income taxes resulting from: | |||||||||||||||||
| Tax adjustment relating to REIT | (33,926) | (39,299) | (82,620) | ||||||||||||||
| State taxes, net of federal tax benefit | (2,919) | (3,147) | 4,043 | ||||||||||||||
| Increase (decrease) in valuation allowance | 37,018 | 4,855 | (1,333) | ||||||||||||||
| Withholding taxes | 11,359 | 11,658 | 10,600 | ||||||||||||||
| (Reversal) reserve accrual and audit settlements, net of federal tax benefit | (2,052) | (4,946) | 40 | ||||||||||||||
| Change in valuation of acquisition contingencies | 643 | 3,242 | (19,656) | ||||||||||||||
| Foreign tax rate differential | 13,322 | 6,876 | 22,227 | ||||||||||||||
| Adjustments relating to foreign taxes | (10,346) | 14,405 | 2,820 | ||||||||||||||
| Excess tax benefits on equity compensation | (5,047) | (1,905) | (955) | ||||||||||||||
| Other, net | 1,467 | 491 | 1,679 | ||||||||||||||
| Provision (Benefit) for Income Taxes | $ | 60,872 | $ | 39,943 | $ | 69,489 |
Our effective tax rates for the years ended December 31, 2024, 2023 and 2022 were 24.9%, 17.6% and 11.0%, 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 and interest expenses that we generate and (vi) the taxability or deductibility of significant transactions.
| IRON MOUNTAIN 2024 FORM 10-K | 115 |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
10. INCOME TAXES (CONTINUED)
The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate were:
| YEAR ENDED DECEMBER 31, | ||||||||
| 2024 | 2023 | 2022 | ||||||
| The lack of tax benefits recognized for the ordinary losses and disallowed interest expenses of certain entities of $37,018 and differences in the tax rates to which our foreign earnings are subject of $13,322, partially offset by the benefits derived from the dividends paid deduction of $33,926. In addition, we recorded gains and losses in Other expense (income), net during the period, for which there was no tax impact. | The benefits derived from the dividends paid deduction of $39,299 and the differences in the tax rates to which our foreign earnings are subject of $6,876. In addition, there were gains and losses recorded in Other expense (income), net for which there was no tax impact. | 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 expense (income), net and Gain (loss) on disposal/write-down of property, plant and equipment, net during the period for which there were insignificant tax impacts. |
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.
We provide for foreign withholding taxes on the undistributed earnings of our foreign TRSs because it is not our intention to reinvest the 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.
The OECD has issued proposals that change long-standing tax principles, including a global minimum tax rate of 15% ("Pillar Two"). While the United States has not enacted legislation to effectuate Pillar Two, Iron Mountain operates in many foreign jurisdictions that have enacted legislation to implement Pillar Two. Pillar Two is applicable for Iron Mountain beginning in 2024. Since we do not have material operations in jurisdictions with tax rates lower than the Pillar Two minimum, we are not expecting a material impact on our effective tax rate, corporate tax liabilities or cash tax liabilities. We continue to monitor United States and global legislative actions as well as administrative guidance related to Pillar Two for potential impacts.
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 decreases of $375 and $2,557 and an increase of $90 for gross interest and penalties for the years ended December 31, 2024, 2023 and 2022, respectively. We had $3,558 and $4,183 accrued for the payment of interest and penalties as of December 31, 2024 and 2023, 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 | ||||
| 2021 to present | United Kingdom | ||||
| 2016 to present | Canada |
| 116 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
10. INCOME TAXES (CONTINUED)
The normal statute of limitations for United States federal tax purposes is three years from the date the tax return is filed; however, the statute of limitations may remain open for periods longer than three years in instances where a federal tax examination is in progress. The 2024, 2023 and 2022 tax years and net operating loss carryforwards utilized in these years remain subject to examination for United States federal tax purposes. 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, 2024, we had $25,876 of reserves related to uncertain tax positions, of which $19,740 and $6,136 is included in other long-term liabilities and deferred income taxes, respectively, in the accompanying Consolidated Balance Sheet. As of December 31, 2023, we had $23,570 of reserves related to uncertain tax positions, of which $20,488 and $3,082 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 to our estimates.
A rollforward of unrecognized tax benefits is as follows:
| Gross tax contingencies—January 1, 2022 | $ | 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 | ||||
| Gross additions based on tax positions related to the current year | 3,511 | ||||
| Gross additions for tax positions of prior years | 634 | ||||
| Gross reductions for tax positions of prior years | (5,454) | ||||
| Lapses of statutes | (2,874) | ||||
| Gross tax contingencies—December 31, 2023 | 23,570 | ||||
| Gross additions based on tax positions related to the current year | 3,091 | ||||
| Gross reductions for tax positions of prior years | (1,698) | ||||
| Acquired unrecognized tax benefits | 5,717 | ||||
| Lapses of statutes | (4,804) | ||||
| Gross tax contingencies—December 31, 2024 | $ | 25,876 |
The reversal of the reserves of $25,876 as of December 31, 2024 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 $2,941 of our unrecognized tax positions may be recognized by the end of 2025 as a result of a lapse of statute of limitations or upon closing and settling significant audits in various worldwide jurisdictions.
| IRON MOUNTAIN 2024 FORM 10-K | 117 |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
11. SEGMENT INFORMATION
Our Chief Operating Decision Maker (“CODM”), our President and CEO, uses Adjusted EBITDA as the basis for evaluating the performance of, and allocating resources to, our operating segments. The CODM uses Adjusted EBITDA to ensure that resources, including capital, are allocated strategically to support our strategy. Other significant expenses regularly provided to the CODM include total Restructuring and other transformation costs, as disclosed in Note 13.
As of December 31, 2024, 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 information services, vital records services, courier operations, and the collection, handling and disposal of sensitive documents ("Records Management") for customers in 61 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. In August 2024, we launched the Insight Digital Experience Platform (also referred to as DXP), a secure, software-as-a-service platform designed to automate customer workflows, enhance data accessibility, ensure audit compliance and optimize customer data for artificial intelligence applications.
(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)Media and Archive Services, which includes 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 utilizing 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 ALM and Fine Arts businesses and Corporate and Other.
(i)ALM provides hyperscale and corporate IT infrastructure managers with services and solutions that enable the decommissioning, data erasure, processing and disposition, and recycling 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. In addition, ALM also offers workplace IT asset management services including storage, configuration, deployment, device support, end-of-life disposition and recycling or sale of employee IT devices. Our ALM services focus on protecting and eradicating customer data while maintaining strong, auditable and transparent chain of custody practices.
(ii)Fine Arts provides technical expertise in the handling, installation and storing of art.
(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.
| 118 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
11. SEGMENT INFORMATION (CONTINUED)
The accounting policies of our reportable segments are the same as those described in Note 2.
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 | TOTAL REPORTABLE SEGMENTS | CORPORATE AND OTHER | TOTAL CONSOLIDATED | |||||||||||||||||||||||||
| As of and for the Year Ended December 31, 2024 | |||||||||||||||||||||||||||||
| Total Revenues | $ | 4,979,438 | $ | 620,028 | $ | 5,599,466 | $ | 550,443 | $ | 6,149,909 | |||||||||||||||||||
| Storage Rental | 3,009,094 | 606,294 | 3,615,388 | 66,871 | 3,682,259 | ||||||||||||||||||||||||
| Service | 1,970,344 | 13,734 | 1,984,078 | 483,572 | 2,467,650 | ||||||||||||||||||||||||
| Other Reportable Segment Expenses(1) | 2,756,321 | 337,515 | 3,093,836 | ||||||||||||||||||||||||||
| Adjusted EBITDA | 2,223,117 | 282,513 | 2,505,630 | ||||||||||||||||||||||||||
| Total Assets(2) | 10,408,885 | 6,060,608 | 16,469,493 | 2,247,622 | 18,717,115 | ||||||||||||||||||||||||
| As of and for the Year Ended December 31, 2023 | |||||||||||||||||||||||||||||
| Total Revenues | $ | 4,661,776 | $ | 495,026 | $ | 5,156,802 | $ | 323,487 | $ | 5,480,289 | |||||||||||||||||||
| Storage Rental | 2,834,352 | 474,066 | 3,308,418 | 62,227 | 3,370,645 | ||||||||||||||||||||||||
| Service | 1,827,424 | 20,960 | 1,848,384 | 261,260 | 2,109,644 | ||||||||||||||||||||||||
| Other Reportable Segment Expenses(1) | 2,634,739 | 279,081 | 2,913,820 | ||||||||||||||||||||||||||
| Adjusted EBITDA | 2,027,037 | 215,945 | 2,242,982 | ||||||||||||||||||||||||||
| Total Assets(2) | 10,876,225 | 4,788,600 | 15,664,825 | 1,808,977 | 17,473,802 | ||||||||||||||||||||||||
| As of and for the Year Ended December 31, 2022 | |||||||||||||||||||||||||||||
| Total Revenues | $ | 4,295,115 | $ | 401,125 | $ | 4,696,240 | $ | 407,334 | $ | 5,103,574 | |||||||||||||||||||
| Storage Rental | 2,606,721 | 372,208 | 2,978,929 | 55,094 | 3,034,023 | ||||||||||||||||||||||||
| Service | 1,688,394 | 28,917 | 1,717,311 | 352,240 | 2,069,551 | ||||||||||||||||||||||||
| Other Reportable Segment Expenses(1) | 2,407,526 | 225,503 | 2,633,029 | ||||||||||||||||||||||||||
| Adjusted EBITDA | 1,887,589 | 175,622 | 2,063,211 | ||||||||||||||||||||||||||
| Total Assets(2) | 10,654,650 | 3,752,088 | 14,406,738 | 1,733,776 | 16,140,514 |
(1)Primarily relates to Cost of sales (excluding depreciation and amortization) and Selling, general and administrative expenses for the respective reportable segment.
(2)Excludes all intercompany receivables or payables and investment in subsidiary balances.
| IRON MOUNTAIN 2024 FORM 10-K | 119 |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
11. SEGMENT INFORMATION (CONTINUED)
A reconciliation of Adjusted EBITDA for our reportable segments to total Net Income (Loss) Before Provision (Benefit) for Income Taxes for the years ended December 31, 2024, 2023 and 2022 is as follows:
| YEAR ENDED DECEMBER 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Total Adjusted EBITDA for Reportable Segments | $ | 2,505,630 | $ | 2,242,982 | $ | 2,063,211 | |||||||||||
| Add/(Deduct): | |||||||||||||||||
| Corporate and other | (269,250) | (281,305) | (236,154) | ||||||||||||||
| Interest expense, net | (721,559) | (585,932) | (488,014) | ||||||||||||||
| Depreciation and amortization | (900,905) | (776,159) | (727,595) | ||||||||||||||
| Acquisition and Integration Costs | (35,842) | (25,875) | (47,746) | ||||||||||||||
| Restructuring and other transformation | (161,359) | (175,215) | (41,933) | ||||||||||||||
| (Loss) gain on disposal/write-down of property, plant and equipment, net (including real estate) | (6,196) | 12,825 | 93,268 | ||||||||||||||
| Other (expense) income, net, excluding our share of losses (gains) from our unconsolidated joint ventures | (39,159) | (98,891) | 83,268 | ||||||||||||||
| Stock-based compensation expense | (118,138) | (73,799) | (56,861) | ||||||||||||||
| Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures | (8,684) | (11,425) | (9,806) | ||||||||||||||
| Total Net Income (Loss) Before Provision (Benefit) for Income Taxes | $ | 244,538 | $ | 227,206 | $ | 631,638 |
| 120 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(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, 2024, 2023 and 2022 is as follows:
| YEAR ENDED DECEMBER 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Revenues: | |||||||||||||||||
| United States | $ | 4,008,402 | $ | 3,507,134 | $ | 3,262,755 | |||||||||||
| United Kingdom | 426,462 | 393,917 | 332,556 | ||||||||||||||
| Canada | 303,184 | 279,325 | 270,836 | ||||||||||||||
| Remaining Countries | 1,411,861 | 1,299,913 | 1,237,427 | ||||||||||||||
| Long-lived Assets: | |||||||||||||||||
| United States | $ | 11,399,912 | $ | 9,492,911 | $ | 8,925,643 | |||||||||||
| United Kingdom | 1,419,582 | 1,315,715 | 1,062,641 | ||||||||||||||
| Canada | 612,581 | 498,511 | 514,777 | ||||||||||||||
| Remaining Countries | 3,593,818 | 4,431,120 | 4,090,308 | ||||||||||||||
Information as to our revenues by product and service lines by segment for the years ended December 31, 2024, 2023 and 2022 is as follows:
| GLOBAL RIM BUSINESS | GLOBAL DATA CENTER BUSINESS | CORPORATE AND OTHER | TOTAL CONSOLIDATED | ||||||||||||||||||||
| For the Year Ended December 31, 2024 | |||||||||||||||||||||||
| Records Management(1) | $ | 3,899,109 | $ | — | $ | 162,366 | $ | 4,061,475 | |||||||||||||||
| Data Management(1) | 515,306 | — | — | 515,306 | |||||||||||||||||||
| Information Destruction(1)(2)(3) | 565,023 | — | 388,077 | 953,100 | |||||||||||||||||||
| Data Center(1) | — | 620,028 | — | 620,028 | |||||||||||||||||||
| For the Year Ended December 31, 2023 | |||||||||||||||||||||||
| Records Management(1) | $ | 3,625,264 | $ | — | $ | 146,389 | $ | 3,771,653 | |||||||||||||||
| Data Management(1) | 520,194 | — | — | 520,194 | |||||||||||||||||||
| Information Destruction(1)(2)(3) | 516,318 | — | 177,098 | 693,416 | |||||||||||||||||||
| Data Center(1) | — | 495,026 | — | 495,026 | |||||||||||||||||||
| 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 | |||||||||||||||||||
(1)Each of these offerings has a component of revenue that is storage rental related and a component that is service related, 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 our ALM business.
| IRON MOUNTAIN 2024 FORM 10-K | 121 |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(In thousands, except share and per share data)
12. RELATED PARTY TRANSACTIONS
In October 2020, in connection with the formation of the Frankfurt JV, 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"). On June 29, 2023, we completed the Clutter Acquisition and terminated the Clutter Agreement.
Revenue recognized in the accompanying Consolidated Statements of Operations under these agreements for the years ended December 31, 2024, 2023 and 2022 is as follows (approximately):
| YEAR ENDED DECEMBER 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Frankfurt JV Agreements(1) | $ | 3,000 | $ | 1,800 | $ | 15,000 | |||||||||||
| MakeSpace Agreement and Clutter Agreement(2) | — | 13,000 | 28,500 |
(1)Revenue associated with the Frankfurt JV Agreements is presented as a component of our Global Data Center Business segment.
(2)Revenue associated with the MakeSpace Agreement and the Clutter Agreement is presented as a component of our Global RIM Business segment.
13. RESTRUCTURING AND OTHER TRANSFORMATION
PROJECT MATTERHORN
In September 2022, we announced Project Matterhorn. Project Matterhorn investments focus on transforming our operating model to a global operating model. Project Matterhorn focuses 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 are investing to accelerate growth and to capture a greater share of the large, global addressable markets in which we operate. We have incurred approximately $378,500 in Restructuring and other transformation costs from the inception of Project Matterhorn through December 31, 2024. We expect to incur approximately $150,000 in costs related to Project Matterhorn during the year ending December 31, 2025, at which point the program is expected to be completed. 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 of our growth initiatives.
Restructuring and other transformation related to Project Matterhorn included in the accompanying Consolidated Statements of Operations for the years ended December 31, 2024, 2023 and 2022 and from the inception of Project Matterhorn through December 31, 2024 is as follows:
| YEAR ENDED DECEMBER 31, 2024 | YEAR ENDED DECEMBER 31, 2023 | YEAR ENDED DECEMBER 31, 2022 | FROM INCEPTION THROUGH DECEMBER 31, 2024 | |||||||||||
| Restructuring | $ | 51,082 | $ | 57,319 | $ | 13,292 | $ | 121,693 | ||||||
| Other transformation | 110,277 | 117,896 | 28,641 | 256,814 | ||||||||||
| Restructuring and other transformation | $ | 161,359 | $ | 175,215 | $ | 41,933 | $ | 378,507 |
| 122 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2024
(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 Statements of Operations, by segment, for the years ended December 31, 2024, 2023 and 2022 and from the inception of Project Matterhorn through December 31, 2024 are as follows:
| YEAR ENDED DECEMBER 31, 2024 | YEAR ENDED DECEMBER 31, 2023 | YEAR ENDED DECEMBER 31, 2022 | FROM INCEPTION THROUGH DECEMBER 31, 2024 | |||||||||||
| Global RIM Business | $ | 42,130 | $ | 46,722 | $ | 13,083 | $ | 101,935 | ||||||
| Global Data Center Business | 3,056 | 520 | — | 3,576 | ||||||||||
| Corporate and Other | 5,896 | 10,077 | 209 | 16,182 | ||||||||||
| Total restructuring costs | $ | 51,082 | $ | 57,319 | $ | 13,292 | $ | 121,693 |
Other transformation costs for Project Matterhorn, included as a component of Restructuring and other transformation in the accompanying Consolidated Statements of Operations, by segment, for the years ended December 31, 2024, 2023 and 2022 and from the inception of Project Matterhorn through December 31, 2024 are as follows:
| YEAR ENDED DECEMBER 31, 2024 | YEAR ENDED DECEMBER 31, 2023 | YEAR ENDED DECEMBER 31, 2022 | FROM INCEPTION THROUGH DECEMBER 31, 2024 | |||||||||||
| Global RIM Business | $ | 38,337 | $ | 28,369 | $ | 3,901 | $ | 70,607 | ||||||
| Global Data Center Business | 4,798 | 4,964 | 58 | 9,820 | ||||||||||
| Corporate and Other | 67,142 | 84,563 | 24,682 | 176,387 | ||||||||||
| Total other transformation costs | $ | 110,277 | $ | 117,896 | $ | 28,641 | $ | 256,814 |
A rollforward of the accrued restructuring costs and accrued other transformation costs, which are included as components of Accrued expenses and other current liabilities in our Consolidated Balance Sheets for December 31, 2022 through December 31, 2024 is as follows:
| RESTRUCTURING | OTHER TRANSFORMATION | TOTAL RESTRUCTURING AND OTHER TRANSFORMATION | |||||||||||||||
| Balance as of December 31, 2022 | $ | 1,058 | $ | 7,029 | $ | 8,087 | |||||||||||
| Amounts accrued | 57,319 | 117,895 | 175,214 | ||||||||||||||
| Payments | (47,646) | (100,070) | (147,716) | ||||||||||||||
| Balance as of December 31, 2023 | 10,731 | 24,854 | 35,585 | ||||||||||||||
| Amounts accrued | 51,082 | 110,277 | 161,359 | ||||||||||||||
| Payments | (54,839) | (122,127) | (176,966) | ||||||||||||||
| Balance as of December 31, 2024 | $ | 6,974 | $ | 13,004 | $ | 19,978 |
| IRON MOUNTAIN 2024 FORM 10-K | 123 |
Part IV
IRON MOUNTAIN INCORPORATED
SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION
DECEMBER 31, 2024
(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, data center infrastructure and racking structures. Schedule III does not reflect the 1,110 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, data center infrastructure 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, data center infrastructure, racking structures and construction in progress as disclosed in Note 2.i. to Notes to Consolidated Financial Statements as of December 31, 2024:
| Gross Amount of Real Estate Assets, As Reported on Schedule III | $ | 6,714,601 | |||
| Add (Deduct) Reconciling Items: | |||||
| Book value of racking structures included in leased facilities(1) | 1,448,031 | ||||
| Book value of financing leases(2) | 335,310 | ||||
| Book value of construction in progress(3) | 515,028 | ||||
| Book value of other | (5,777) | ||||
| Total Reconciling Items | 2,292,592 | ||||
| Gross Amount of Real Estate Assets, As Disclosed in Note 2.i. | $ | 9,007,193 |
(1)Represents the gross book value of racking structures installed in our 1,110 leased facilities, which is included in historical book value of racking structures in Note 2.i., but excluded from Schedule III.
(2)Represents the gross book value of buildings, building improvements and data center infrastructure that are subject to financing leases, which are included in the historical book value of buildings, building improvements and data center infrastructure 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, 2024 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, 2024:
| Accumulated Depreciation of Real Estate Assets, As Reported on Schedule III | $ | 1,453,058 | |||
| Add (Deduct) Reconciling Items: | |||||
| Accumulated Depreciation - non-real estate assets(1) | 1,635,183 | ||||
| Accumulated Depreciation - racking structures in leased facilities(2) | 1,126,621 | ||||
| Accumulated Depreciation - financing leases(3) | 141,803 | ||||
| Accumulated Depreciation - other | (2,267) | ||||
| Total Reconciling Items | 2,901,340 | ||||
| Accumulated Depreciation, As Reported on Consolidated Balance Sheet | $ | 4,354,398 |
(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 structures as of December 31, 2024 installed in our 1,110 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, building improvements and data center infrastructure as of December 31, 2024 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.
| 124 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED)
DECEMBER 31, 2024
(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 | $ | 2,923 | $ | 4,560 | $ | 2,829 | 2001 | Up to 40 years | |||||||||||||||||||||||||||||||||||||
| 4802 East Van Buren, Phoenix, Arizona | 1 | — | 15,599 | 506,035 | 521,634 | 35,143 | 2019 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 615 North 48th Street, Phoenix, Arizona | 1 | — | 423,107 | 320,893 | 744,000 | 108,388 | 2018 | (5) | Up to 40 years | |||||||||||||||||||||||||||||||||||||||||
| 2955 S. 18th Place, Phoenix, Arizona | 1 | — | 12,178 | 15,203 | 27,381 | 9,839 | 2007 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 4449 South 36th St, Phoenix, Arizona | 1 | — | 7,305 | 1,204 | 8,509 | 5,865 | 2012 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 8521 E. Princess Drive, Scottsdale, Arizona | 1 | — | 87,865 | 7,280 | 95,145 | 29,847 | 2018 | (5) | Up to 40 years | |||||||||||||||||||||||||||||||||||||||||
| 600 Burning Tree Rd, Fullerton, California | 1 | — | 4,762 | 3,222 | 7,984 | 3,577 | 2002 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 21063 Forbes St, Hayward, California | 1 | — | 13,407 | 780 | 14,187 | 3,954 | 2019 | (11) | Up to 40 years | |||||||||||||||||||||||||||||||||||||||||
| 1025 North Highland Ave, Los Angeles, California | 1 | — | 10,168 | 31,438 | 41,606 | 20,205 | 1988 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 1010 - 1006 North Mansfield, Los Angeles, California | 1 | — | 749 | 268 | 1,017 | 209 | 2014 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 1350 West Grand Ave, Oakland, California | 1 | — | 15,172 | 7,775 | 22,947 | 17,147 | 1997 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 1760 North Saint Thomas Circle, Orange, California | 1 | — | 4,576 | 926 | 5,502 | 2,475 | 2002 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 1915 South Grand Ave, Santa Ana, California | 1 | — | 3,420 | 1,861 | 5,281 | 2,436 | 2001 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 2680 Sequoia Dr, South Gate, California | 1 | — | 6,329 | 3,337 | 9,666 | 4,933 | 2002 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 336 Oyster Point Blvd, South San Francisco, California | 1 | — | 15,100 | 1,282 | 16,382 | 3,394 | 2019 | (11) | Up to 40 years | |||||||||||||||||||||||||||||||||||||||||
| 3576 N. Moline, Aurora, Colorado | 1 | — | 1,583 | 4,611 | 6,194 | 2,823 | 2001 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 5151 E. 46th Ave, Denver, Colorado | 1 | — | 6,312 | 787 | 7,099 | 2,612 | 2014 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 11333 E 53rd Ave, Denver, Colorado | 1 | — | 7,403 | 11,227 | 18,630 | 12,240 | 2001 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 4300 Brighton Boulevard, Denver, Colorado | 1 | — | 116,336 | 37,745 | 154,081 | 33,992 | 2017 | Up to 40 years |
| IRON MOUNTAIN 2024 FORM 10-K | 125 |
Part IV
IRON MOUNTAIN INCORPORATED
SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED)
DECEMBER 31, 2024
(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 | $ | 2,160 | $ | 9,577 | $ | 7,093 | 2002 | Up to 40 years | ||||||||||||||||||||||||||||||||||
| Kennedy Road, Windsor, Connecticut | 2 | — | 10,447 | 33,554 | 44,001 | 27,974 | 2001 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 1400 Johnson Way, New Castle, Delaware | 1 | — | 5,686 | 601 | 6,287 | 539 | 2023 | (11) | Up to 40 years | ||||||||||||||||||||||||||||||||||||||
| 150-200 Todds Ln, Wilmington, Delaware | 1 | — | 7,226 | 1,269 | 8,495 | 5,865 | 2002 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 3501 Electronics Way, West Palm Beach, Florida | 1 | — | 4,201 | 15,542 | 19,743 | 10,284 | 2001 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 5319 Tulane Drive SW, Atlanta, Georgia | 1 | — | 2,808 | 4,256 | 7,064 | 5,013 | 2002 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 6111 Live Oak Parkway, Norcross, Georgia | 1 | — | 3,542 | 3,682 | 7,224 | 1,241 | 2017 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 2425 South Halsted St, Chicago, Illinois | 1 | — | 7,470 | 1,861 | 9,331 | 5,138 | 2006 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 1301 S. Rockwell St, Chicago, Illinois | 1 | — | 7,947 | 30,285 | 38,232 | 19,387 | 1999 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 2604 West 13th St, Chicago, Illinois | 1 | — | 404 | 4,282 | 4,686 | 3,169 | 2001 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 2211 W. Pershing Rd, Chicago, Illinois | 1 | — | 4,264 | 14,383 | 18,647 | 11,415 | 2001 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 1680 and 1700 E. Touhy Avenue, Des Plaines, Illinois | — | — | 2,216 | 101,058 | 103,274 | 2,134 | 2023 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 2255 Pratt Blvd, Elk Grove, Illinois | 1 | — | 1,989 | 4,101 | 6,090 | 2,368 | 2000 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 4175 Chandler Dr Opus No. Corp, Hanover Park, Illinois | 1 | — | 22,048 | 4,658 | 26,706 | 12,913 | 2014 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 2600 Beverly Drive, Lincoln, Illinois | 1 | — | 1,378 | 967 | 2,345 | 577 | 2015 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 6090 NE 14th Street, Des Moines, Iowa | 1 | — | 622 | 584 | 1,206 | 592 | 2003 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| South 7th St, Louisville, Kentucky | 4 | — | 709 | 16,242 | 16,951 | 8,322 | Various | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 26 Parkway Drive (fka 133 Pleasant), Scarborough, Maine | 1 | — | 8,337 | 690 | 9,027 | 4,310 | 2015 | (11) | Up to 40 years | ||||||||||||||||||||||||||||||||||||||
| 8928 McGaw Ct, Columbia, Maryland | 1 | — | 2,198 | 6,723 | 8,921 | 5,149 | 1999 | Up to 40 years |
| 126 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED)
DECEMBER 31, 2024
(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) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 32 George St, Boston, Massachusetts | 1 | — | 1,820 | 5,880 | 7,700 | 6,147 | 1991 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 3435 Sharps Lot Rd, Dighton, Massachusetts | 1 | — | 1,911 | 889 | 2,800 | 2,302 | 1999 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 77 Constitution Boulevard, Franklin, Massachusetts | 1 | — | 5,413 | 503 | 5,916 | 1,473 | 2014 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| Bearfoot Road, Northboro, Massachusetts | 2 | — | 55,923 | 18,523 | 74,446 | 49,206 | Various | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 6601 Sterling Dr South, Sterling Heights, Michigan | 1 | — | 1,294 | 1,255 | 2,549 | 1,497 | 2002 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 3140 Ryder Trail South, Earth City, Missouri | 1 | — | 3,072 | 3,957 | 7,029 | 3,370 | 2004 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| Leavenworth St/18th St, Omaha, Nebraska | 2 | — | 2,924 | 20,007 | 22,931 | 10,846 | Various | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 4105 North Lamb Blvd, Las Vegas, Nevada | 1 | — | 3,430 | 11,359 | 14,789 | 8,099 | 2002 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 17 Hydro Plant Rd, Milton, New Hampshire | 1 | — | 6,179 | 4,678 | 10,857 | 8,295 | 2001 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 3003 Woodbridge Avenue, Edison, New Jersey | 1 | — | 310,404 | 137,462 | 447,866 | 80,555 | 2018 | (5) | Up to 40 years | |||||||||||||||||||||||||||||||||||||||||
| 811 Route 33, Freehold, New Jersey | 3 | — | 38,697 | 65,578 | 104,275 | 68,137 | Various | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 51-69 & 77-81 Court St, Newark, New Jersey | 1 | — | 11,734 | 19,407 | 31,141 | 5,209 | 2015 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 560 Irvine Turner Blvd, Newark, New Jersey | 1 | — | 9,522 | 8,538 | 18,060 | 2,448 | 2015 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 231 Johnson Ave, Newark, New Jersey | 1 | — | 8,945 | 5,837 | 14,782 | 2,477 | 2015 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 650 Howard Avenue, Somerset, New Jersey | 1 | — | 3,585 | 12,603 | 16,188 | 8,693 | 2006 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 100 Bailey Ave, Buffalo, New York | 1 | — | 1,324 | 11,596 | 12,920 | 8,784 | 1998 | Up to 40 years |
| IRON MOUNTAIN 2024 FORM 10-K | 127 |
Part IV
IRON MOUNTAIN INCORPORATED
SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED)
DECEMBER 31, 2024
(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 | $ | 5,917 | 1998 | Up to 40 years | |||||||||||||||||||||||||||||||||||||
| County Rd 10, Linlithgo, New York | 2 | — | 102 | 3,275 | 3,377 | 2,294 | 2001 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| Ulster Ave/Route 9W, Port Ewen, New York | 3 | — | 23,137 | 13,121 | 36,258 | 27,464 | 2001 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| Binnewater Rd, Rosendale, New York | 2 | — | 5,142 | 12,037 | 17,179 | 10,084 | Various | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 220 Wavel St, Syracuse, New York | 1 | — | 2,929 | 2,856 | 5,785 | 3,769 | 1997 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 826 Church Street, Morrisville, North Carolina | 1 | — | 7,087 | 1,965 | 9,052 | 2,537 | 2017 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 1275 East 40th, Cleveland, Ohio | 1 | — | 3,129 | 606 | 3,735 | 2,520 | 1999 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 7208 Euclid Avenue, Cleveland, Ohio | 1 | — | 3,336 | 5,001 | 8,337 | 5,123 | 2001 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 3366 South Tech Boulevard, Miamisburg, Ohio | 1 | — | 29,092 | 2,629 | 31,721 | 7,584 | 2018 | (5) | Up to 40 years | |||||||||||||||||||||||||||||||||||||||||
| Branchton Rd, Boyers, Pennsylvania | 2 | — | 21,166 | 300,402 | 321,568 | 108,660 | Various | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 800 Carpenters Crossings, Folcroft, Pennsylvania | 1 | — | 2,457 | 1,079 | 3,536 | 2,486 | 2000 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| Las Flores Industrial Park, Rio Grande, Puerto Rico | 1 | — | 4,185 | 3,965 | 8,150 | 5,718 | 2001 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 1061 Carolina Pines Road, Columbia, South Carolina | 1 | — | 11,776 | 2,957 | 14,733 | 5,762 | 2016 | (11) | Up to 40 years | |||||||||||||||||||||||||||||||||||||||||
| 2301 Prosperity Way, Florence, South Carolina | 1 | — | 2,846 | 1,366 | 4,212 | 2,048 | 2016 | (11) | Up to 40 years | |||||||||||||||||||||||||||||||||||||||||
| Mitchell Street, Knoxville, Tennessee | 2 | — | 718 | 4,710 | 5,428 | 3,064 | Various | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| 6005 Dana Way, Nashville, Tennessee | 2 | — | 1,827 | 13,309 | 15,136 | 3,715 | 2000 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| Capital Parkway, Carrollton, Texas | 3 | — | 8,299 | 1,586 | 9,885 | 3,542 | 2015 | (11) | Up to 40 years | |||||||||||||||||||||||||||||||||||||||||
| 1800 Columbian Club Dr, Carrolton, Texas | 1 | — | 19,673 | 2,724 | 22,397 | 12,147 | 2013 | Up to 40 years |
| 128 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED)
DECEMBER 31, 2024
(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) | |||||||||||||||||||||||||||||||||||||||||||||||
| 1905 John Connally Dr, Carrolton, Texas | 1 | $ | — | $ | 2,174 | $ | 1,013 | $ | 3,187 | $ | 1,811 | 2000 | Up to 40 years | ||||||||||||||||||||||||||||||||||
| 13425 Branchview Ln, Dallas, Texas | 1 | — | 3,518 | 8,369 | 11,887 | 9,226 | 2001 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 1819 S. Lamar St, Dallas, Texas | 1 | — | 3,215 | 2,447 | 5,662 | 3,250 | 2000 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 2000 Robotics Place Suite B, Fort Worth, Texas | 1 | — | 5,328 | 8,790 | 14,118 | 4,428 | 2002 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 1202 Ave R, Grand Prairie, Texas | 1 | — | 8,354 | 2,358 | 10,712 | 7,185 | 2003 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 6203 Bingle Rd, Houston, Texas | 1 | — | 3,188 | 12,500 | 15,688 | 10,476 | 2001 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 2600 Center Street, Houston, Texas | 1 | — | 2,840 | 2,879 | 5,719 | 3,282 | 2000 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 5707 Chimney Rock, Houston, Texas | 1 | — | 1,032 | 1,270 | 2,302 | 1,365 | 2002 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 5249 Glenmont Ave, Houston, Texas | 1 | — | 3,467 | 2,961 | 6,428 | 3,659 | 2000 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 15333 Hempstead Hwy, Houston, Texas | 3 | — | 6,327 | 38,963 | 45,290 | 21,759 | 2004 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 5757 Royalton Dr, Houston, Texas | 1 | — | 1,795 | 1,131 | 2,926 | 1,683 | 2000 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 9601 West Tidwell, Houston, Texas | 1 | — | 1,680 | 3,420 | 5,100 | 1,924 | 2001 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 7800 Westpark, Houston, Texas | 1 | — | 6,323 | 1,831 | 8,154 | 2,683 | 2015 | (11) | Up to 40 years | ||||||||||||||||||||||||||||||||||||||
| 1665 S. 5350 West, Salt Lake City, Utah | 1 | — | 6,239 | 5,289 | 11,528 | 6,879 | 2002 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 11052 Lakeridge Pkwy, Ashland, Virginia | 1 | — | 1,709 | 2,005 | 3,714 | 2,494 | 1999 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 11660 Hayden Road, Manassas, Virginia | 4 | — | 104,824 | 1,684,418 | 1,789,242 | 78,846 | 2020 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 3725 Thirlane Rd. N.W., Roanoke, Virginia | 1 | — | 2,577 | 300 | 2,877 | 1,499 | 2015 | (11) | Up to 40 years | ||||||||||||||||||||||||||||||||||||||
| 6110 Technology Creek Drive, Sandston, Virginia | — | — | 8,068 | 86 | 8,154 | — | 2024 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 22445 Randolph Dr, Sterling, Virginia | 1 | — | 7,598 | 4,510 | 12,108 | 7,520 | 2005 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 307 South 140th St, Burien, Washington | 1 | — | 2,078 | 2,922 | 5,000 | 3,055 | 1999 | Up to 40 years |
| IRON MOUNTAIN 2024 FORM 10-K | 129 |
Part IV
IRON MOUNTAIN INCORPORATED
SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED)
DECEMBER 31, 2024
(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) | |||||||||||||||||||||||||||||||||||||||||||||||
| 6600 Hardeson Rd, Everett, Washington | 1 | $ | — | $ | 5,399 | $ | 4,269 | $ | 9,668 | $ | 4,641 | 2002 | Up to 40 years | ||||||||||||||||||||||||||||||||||
| 1201 N. 96th St, Seattle, Washington | 1 | — | 4,496 | 2,655 | 7,151 | 4,996 | 2001 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 4330 South Grove Road, Spokane, Washington | 1 | — | 3,906 | 1,405 | 5,311 | 1,146 | 2015 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| Total United States | 115 | $ | — | $ | 1,665,741 | $ | 3,708,482 | $ | 5,374,223 | $ | 1,101,170 | ||||||||||||||||||||||||||||||||||||
| Canada | |||||||||||||||||||||||||||||||||||||||||||||||
| One Command Court, Bedford | 1 | $ | — | $ | 3,847 | $ | 4,132 | $ | 7,979 | $ | 4,981 | 2000 | Up to 40 years | ||||||||||||||||||||||||||||||||||
| 195 Summerlea Road, Brampton | 1 | — | 5,403 | 6,084 | 11,487 | 6,896 | 2000 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 10 Tilbury Court, Brampton | 1 | — | 5,007 | 16,303 | 21,310 | 11,131 | 2000 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 8825 Northbrook Court, Burnaby | 1 | — | 8,091 | 1,551 | 9,642 | 5,343 | 2001 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 8088 Glenwood Drive, Burnaby | 1 | — | 4,326 | 6,200 | 10,526 | 5,953 | 2005 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 5811 26th Street S.E., Calgary | 1 | — | 14,658 | 10,742 | 25,400 | 13,362 | 2000 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 3905-101 Street, Edmonton | 1 | — | 2,020 | 822 | 2,842 | 1,794 | 2000 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 68 Grant Timmins Drive, Kingston | 1 | — | 3,639 | 291 | 3,930 | 840 | 2016 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 3005 Boul. Jean-Baptiste Deschamps, Lachine | 1 | — | 2,751 | 592 | 3,343 | 1,677 | 2000 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 1655 Fleetwood, Laval | 1 | — | 8,196 | 17,722 | 25,918 | 15,840 | 2000 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 4005 Richelieu, Montreal | 1 | — | 1,800 | 2,336 | 4,136 | 2,222 | 2000 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 1209 Algoma Rd, Ottawa | 1 | — | 1,059 | 10,006 | 11,065 | 6,354 | 2000 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 235 Edson Street, Saskatoon | 1 | — | 829 | 1,499 | 2,328 | 1,113 | 2008 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 610 Sprucewood Ave, Windsor | 1 | — | 1,243 | 579 | 1,822 | 991 | 2007 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| Total Canada | 14 | $ | — | $ | 62,869 | $ | 78,859 | $ | 141,728 | $ | 78,497 | ||||||||||||||||||||||||||||||||||||
| Total North America | 129 | $ | — | $ | 1,718,326 | $ | 3,797,627 | $ | 5,515,953 | $ | 1,179,667 |
| 130 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED)
DECEMBER 31, 2024
(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 | $ | 12,139 | $ | 18,681 | $ | 8,490 | 2010 | Up to 40 years | |||||||||||||||||||||||||||||||||||||
| Stupničke Šipkovine 62, Zagreb, Croatia | 1 | — | 1,408 | (620) | 788 | 13 | 2003 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| Kratitirion 9 Kokkinotrimithia Industrial District, Nicosia, Cyprus | 1 | — | 3,136 | 2,446 | 5,582 | 1,351 | 2003 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| Karyatidon 1, Agios Sylas Industrial Area (3rd), Limassol, Cyprus | 1 | — | 1,935 | (180) | 1,755 | 377 | 2018 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| G2-B, Engineering Square IDG Developer’s Area, 6th Oct City Giza, Egypt | 1 | — | 8,984 | (7,107) | 1,877 | 832 | 2021 | (7) | Up to 40 years | |||||||||||||||||||||||||||||||||||||||||
| 65 Egerton Road, Birmingham, England | 1 | — | 6,980 | 2,276 | 9,256 | 5,871 | 2003 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| Otterham Quay Lane, Gillingham, England | 9 | — | 7,418 | 3,520 | 10,938 | 6,376 | 2004 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| Kemble Industrial Park, Kemble, England | 2 | — | 5,277 | 6,699 | 11,976 | 9,051 | 2003 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| Gayton Road, Kings Lynn, England | 3 | — | 3,119 | 3,546 | 6,665 | 3,536 | 2003 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| Harpway Lane, Sopley, England | 1 | — | 681 | 1,816 | 2,497 | 1,621 | 2004 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| Unit 1A Broadmoor Road, Swindon, England | 1 | — | 2,636 | 648 | 3,284 | 1,562 | 2006 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| Jeumont-Schneider, Champagne Sur Seine, France | 3 | — | 1,750 | 2,227 | 3,977 | 2,673 | 2003 | Up to 40 years | ||||||||||||||||||||||||||||||||||||||||||
| Bat I-VII Rue de Osiers, Coignieres, France | 4 | — | 21,318 | (3,963) | 17,355 | 7,174 | 2016 | (4) | Up to 40 years | |||||||||||||||||||||||||||||||||||||||||
| 26 Rue de I Industrie, Fergersheim, France | 1 | — | 1,322 | (38) | 1,284 | 528 | 2016 | (4) | Up to 40 years | |||||||||||||||||||||||||||||||||||||||||
| Bat A, B, C1, C2, C3 Rue Imperiale, Gue de Longroi, France | 1 | — | 3,390 | 519 | 3,909 | 1,736 | 2016 | (4) | Up to 40 years | |||||||||||||||||||||||||||||||||||||||||
| Le Petit Courtin Site de Dois, Gueslin, Mingieres, France | 1 | — | 14,141 | (1,068) | 13,073 | 3,862 | 2016 | (4) | Up to 40 years | |||||||||||||||||||||||||||||||||||||||||
| ZI des Sables, Morangis, France | 1 | — | 12,407 | 11,602 | 24,009 | 18,158 | 2004 | Up to 40 years |
| IRON MOUNTAIN 2024 FORM 10-K | 131 |
Part IV
IRON MOUNTAIN INCORPORATED
SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED)
DECEMBER 31, 2024
(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 | $ | (138) | $ | 5,408 | $ | 1,679 | 2016 | (4) | Up to 40 years | |||||||||||||||||||||||||||||||||
| Heinrich Lanz Alee 47, Frankfurt, Germany | 1 | — | 80,951 | 106,180 | 187,131 | 12,375 | 2021 | (8) | Up to 40 years | ||||||||||||||||||||||||||||||||||||||
| Gutenbergstrabe 55, Hamburg, Germany | 1 | — | 4,022 | 548 | 4,570 | 1,847 | 2016 | (4) | Up to 40 years | ||||||||||||||||||||||||||||||||||||||
| Brommer Weg 1, Wipshausen, Germany | 1 | — | 3,220 | 2,732 | 5,952 | 3,707 | 2006 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| Kilbarry Industrial Park, Dublin Hill, Cork, Ireland | 2 | — | 831 | — | 831 | 24 | 2024 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| Loughbeg, Ringaskiddy, Cork, Ireland | — | — | 868 | — | 868 | — | 2024 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| Warehouse and Offices 4 Springhill, Cork, Ireland | 1 | — | 9,040 | 1,935 | 10,975 | 6,359 | 2014 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 17 Crag Terrace, Dublin, Ireland | 1 | — | 2,818 | 720 | 3,538 | 1,681 | 2001 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| Damastown Industrial Park, Dublin, Ireland | 1 | — | 16,034 | 6,142 | 22,176 | 11,142 | 2012 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| Howemoss Drive, Aberdeen, Scotland | 2 | — | 6,970 | 5,533 | 12,503 | 6,716 | Various | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| Nettlehill Road, Houston Industrial Estate, Livingston, Scotland | 1 | — | 11,517 | 27,595 | 39,112 | 23,098 | 2001 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| Av Madrid s/n Poligono Industrial Matillas, Alcala de Henares, Spain | 1 | — | 186 | (186) | — | — | 2014 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| Calle Bronce, 37, Chiloeches, Spain | 1 | — | 11,011 | 3,401 | 14,412 | 4,837 | 2010 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| Calle del Mar Egeo, 4, 28830, San Fernando de Hanares, Madrid, Spain | 1 | — | 93,370 | 102,443 | 195,813 | 29 | 2022 | (9) | Up to 40 years | ||||||||||||||||||||||||||||||||||||||
| Ctra M.118 , Km.3 Parcela 3, Madrid, Spain | 1 | — | 3,981 | 6,200 | 10,181 | 8,109 | 2001 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| Plot No. S10501 & S10506 Jebel Ali Free Zone Authority, United Arab Emirates | 1 | — | 17,000 | (3,747) | 13,253 | 1,908 | 2021 | (7) | Up to 40 years | ||||||||||||||||||||||||||||||||||||||
| Total Europe | 50 | $ | — | $ | 369,809 | $ | 293,820 | $ | 663,629 | $ | 156,722 |
| 132 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED)
DECEMBER 31, 2024
(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 | $ | (79) | $ | 576 | $ | 92 | 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 | (12,592) | 181 | 69 | 2012 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| Av Ernest de Moraes 815, Bairro Fim do Campo, Jarinu, Brazil | 1 | — | 12,562 | (5,810) | 6,752 | 2,283 | 2016 | (4) | Up to 40 years | ||||||||||||||||||||||||||||||||||||||
| Rua Peri 80, Jundiai, Brazil | 1 | — | 8,894 | (4,072) | 4,822 | 1,778 | 2016 | (4) | Up to 40 years | ||||||||||||||||||||||||||||||||||||||
| Francisco de Souza e Melo, Rio de Janerio, Brazil | 3 | — | 1,868 | 6,150 | 8,018 | 3,682 | Various | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| Hortolandia, Sao Paulo, Brazil | 1 | — | 24,078 | (7,472) | 16,606 | 4,727 | 2014 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| El Otoño 398, Lampa, Chile | 1 | — | 1,612 | — | 1,612 | 254 | 2015 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| El Taqueral 99, Santiago, Chile | 10 | — | 2,629 | 24,062 | 26,691 | 12,698 | Various | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| Panamericana Norte 18900, Santiago, Chile | 7 | — | 4,001 | 11,281 | 15,282 | 7,957 | Various | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| Avenida Prolongacion del Colli 1104, Guadalajara, Mexico | 1 | — | 374 | 959 | 1,333 | 733 | 2002 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| Privada Las Flores No. 25 (G3), Guadalajara, Mexico | 1 | — | 905 | 1,158 | 2,063 | 646 | 2004 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| Tula KM Parque de Las, Huehuetoca, Mexico | 2 | — | 19,937 | 1,791 | 21,728 | 6,089 | 2016 | (4) | Up to 40 years | ||||||||||||||||||||||||||||||||||||||
| Carretera Pesqueria Km2.5(M3), Monterrey, Mexico | 2 | — | 3,537 | 2,811 | 6,348 | 2,476 | 2004 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| Lote 2, Manzana A, (T2& T3), Toluca, Mexico | 1 | — | 2,204 | 580 | 2,784 | 1,328 | 2002 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| Prolongacion de la Calle 7 (T4), Toluca, Mexico | 1 | — | 7,544 | 11,070 | 18,614 | 7,217 | 2007 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| Panamericana Sur, KM 57.5, Lima, Peru | 7 | — | 1,549 | (504) | 1,045 | — | Various | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| Av. Elmer Faucett 3462, Lima, Peru | 2 | — | 4,112 | 5,892 | 10,004 | 5,092 | Various | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| Calle Los Claveles-Seccion 3, Lima, Peru | 1 | — | 8,179 | 25,997 | 34,175 | 11,830 | 2010 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| Total Latin America | 46 | $ | — | $ | 117,579 | $ | 61,056 | $ | 178,635 | $ | 68,951 |
| IRON MOUNTAIN 2024 FORM 10-K | 133 |
Part IV
IRON MOUNTAIN INCORPORATED
SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED)
DECEMBER 31, 2024
(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 Pacific | |||||||||||||||||||||||||||||||||||||||||||||||
| 8 Whitestone Drive, Austins Ferry, Australia | 1 | $ | — | $ | 681 | $ | 2,161 | $ | 2,842 | $ | 655 | 2012 | (4) | Up to 40 years | |||||||||||||||||||||||||||||||||
| Warehouse No 4, Shanghai, China | 1 | $ | — | $ | 1,530 | $ | 991 | $ | 2,521 | $ | 727 | 2013 | Up to 40 years | ||||||||||||||||||||||||||||||||||
| No.464, Pattandur Agrahara Village, Vertex Tech Park, India | 3 | — | 113,767 | 77,814 | 191,581 | 2,728 | 2023 | (10) | Up to 40 years | ||||||||||||||||||||||||||||||||||||||
| Jalan Karanggan Muda Raya No 59, Bogor, Indonesia | 1 | — | 7,897 | 3,779 | 11,676 | 3,606 | 2017 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| Jl. Amd Projakal KM 5.5 Rt 46, Kel. Graha Indah, Kec. Balikpapan Utara, Indonesia | 1 | — | 125 | (81) | 44 | 9 | 2021 | Up to 40 years | |||||||||||||||||||||||||||||||||||||||
| 1 Serangoon North Avenue 6, Singapore | 1 | — | 58,637 | 62,018 | 120,655 | 27,752 | 2018 | (6) | Up to 40 years | ||||||||||||||||||||||||||||||||||||||
| 2 Yung Ho Road, Singapore | 1 | — | 10,395 | 842 | 11,237 | 5,116 | 2016 | (4) | Up to 40 years | ||||||||||||||||||||||||||||||||||||||
| IC1 69 Moo 2, Soi Wat Namdaeng, Bangkok, Thailand | 2 | — | 13,226 | 2,604 | 15,830 | 7,125 | 2016 | (4) | Up to 40 years | ||||||||||||||||||||||||||||||||||||||
| Total Asia Pacific | 11 | $ | — | $ | 206,258 | $ | 150,128 | $ | 356,386 | $ | 47,718 | ||||||||||||||||||||||||||||||||||||
| Total | 236 | $ | — | $ | 2,422,256 | $ | 4,292,345 | $ | 6,714,601 | $ | 1,453,058 |
(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, data center infrastructure and racking structures. The listing does not reflect the 1,110 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, building improvements and data center infrastructure 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)Property was acquired in connection with our acquisition of the Web Werks JV.
(11)This date represents the date the categorization of the property was changed from a leased facility to an owned facility.
| 134 | IRON MOUNTAIN 2024 FORM 10-K |
Part IV
IRON MOUNTAIN INCORPORATED
SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED)
DECEMBER 31, 2024
(Dollars in thousands)
(12)The following tables present the changes in gross carrying amount of real estate owned and accumulated depreciation for the years ended December 31, 2024 and 2023:
| YEAR ENDED DECEMBER 31, | |||||||||||
| GROSS CARRYING AMOUNT OF REAL ESTATE | 2024 | 2023 | |||||||||
| Gross amount at beginning of period | $ | 4,964,366 | $ | 4,461,195 | |||||||
| Additions during period: | |||||||||||
| Acquisitions | — | — | |||||||||
| Discretionary capital projects | 1,836,648 | 535,817 | |||||||||
| Foreign currency translation fluctuations | (73,945) | 5,046 | |||||||||
| 1,762,703 | 540,863 | ||||||||||
| Deductions during period: | |||||||||||
| Cost of real estate sold, disposed or written-down | (14,872) | (27,830) | |||||||||
| Other adjustments(1) | 2,404 | (9,862) | |||||||||
| (12,468) | (37,692) | ||||||||||
| Gross amount at end of period | $ | 6,714,601 | $ | 4,964,366 |
(1)For the year ended December 31, 2023, this includes the cost of racking structures associated with the facilities sold as part of the sale-leaseback transactions.
| YEAR ENDED DECEMBER 31, | |||||||||||
| ACCUMULATED DEPRECIATION | 2024 | 2023 | |||||||||
| Gross amount of accumulated depreciation at beginning of period | $ | 1,305,461 | $ | 1,187,390 | |||||||
| Additions during period: | |||||||||||
| Depreciation | 183,138 | 132,423 | |||||||||
| Foreign currency translation fluctuations | (28,488) | 3,821 | |||||||||
| 154,650 | 136,244 | ||||||||||
| Deductions during period: | |||||||||||
| Amount of accumulated depreciation for real estate assets sold, disposed or written-down | (10,619) | (8,856) | |||||||||
| Other adjustments(1) | 3,566 | (9,317) | |||||||||
| (7,053) | (18,173) | ||||||||||
| Gross amount of end of period | $ | 1,453,058 | $ | 1,305,461 |
(1)For the year ended December 31, 2023, this includes the accumulated depreciation of racking structures 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, 2024 was approximately $6,466,579.
Previous: Item 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES. · Next: Item 16. FORM 10-K SUMMARY.