Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations for the three and nine months ended September 30, 2022 should be read in conjunction with our Condensed Consolidated Financial Statements and Notes thereto for the three and nine months ended September 30, 2022, included herein, and our Consolidated Financial Statements and Notes thereto for the year ended December 31, 2021, included in Exhibit 99.1 of our Current Report on Form 8-K filed with the United States Securities and Exchange Commission ("SEC") on August 4, 2022 (our "Current Report").

FORWARD-LOOKING STATEMENTS

We have made statements in this Quarterly Report that constitute "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements concern our current expectations regarding our future results from operations, economic performance, financial condition, goals, strategies, investment objectives, plans and achievements. These forward-looking statements are subject to various known and unknown risks, uncertainties and other factors, and you should not rely upon them except as statements of our present intentions and of our present expectations, which may or may not occur. When we use words such as "believes", "expects", "anticipates", "estimates", "plans", "intends", "pursue", "will" or similar expressions, we are making forward-looking statements. Although we believe that our forward-looking statements are based on reasonable assumptions, our expected results may not be achieved, and actual results may differ materially from our expectations. In addition, important factors that could cause actual results to differ from expectations include, among others:

• our ability or inability to execute our strategic growth plan, including our ability to invest according to plan, grow our businesses (including through joint ventures), incorporate alternative technologies into our offerings, achieve satisfactory returns on new product offerings, continue our revenue management, expand internationally and manage our international operations, complete acquisitions on satisfactory terms, integrate acquired companies efficiently and transition to more sustainable sources of energy;

• changes in customer preferences and demand for our storage and information management services, including as a result of the shift from paper and tape storage to alternative technologies that require less physical space;

• the impact of our distribution requirements on our ability to execute our business plan;

• the severity and duration of the COVID-19 pandemic and its effects on the global economy, including its effects on us, the markets we serve and our customers and the third parties with whom we do business within those markets;

• our ability to fund capital expenditures;

• our ability to remain qualified for taxation as a real estate investment trust for United States federal income tax purposes ("REIT");

• the costs of complying with and our ability to comply with laws, regulations and customer requirements, including those relating to data privacy and cybersecurity issues, as well as fire and safety and environmental standards;

• the impact of attacks on our internal information technology ("IT") systems, including the impact of such incidents on our reputation and ability to compete and any litigation or disputes that may arise in connection with such incidents;

• changes in the political and economic environments in the countries in which our international subsidiaries operate and changes in the global political climate, particularly as we consolidate operations and move records and data across borders;

• our ability to raise debt or equity capital and changes in the cost of our debt;

• our ability to comply with our existing debt obligations and restrictions in our debt instruments;

• the impact of service interruptions or equipment damage and the cost of power on our data center operations;

• the cost or potential liabilities associated with real estate necessary for our business;

• failures to implement and manage new IT systems;

• unexpected events, including those resulting from climate change or geopolitical events, could disrupt our operations and adversely affect our reputation and results of operations;

• other trends in competitive or economic conditions affecting our financial condition or results of operations not presently contemplated; and

• the other risks described in our periodic reports filed with the SEC, including under the caption "Risk Factors" in Part I, Item 1A of our Annual Report on Form 10-K filed with the SEC on February 24, 2022.

Except as required by law, we undertake no obligation to update any forward-looking statements appearing in this report.

IRON MOUNTAIN SEPTEMBER 30, 2022 FORM 10-Q									33

Part I. Financial Information

OVERVIEW

The following discussions set forth, for the periods indicated, management's discussion and analysis of financial condition and results of operations. Significant trends and changes are discussed for the three and nine months ended September 30, 2022 within each section. Trends and changes that are consistent for both the three and nine month periods are not repeated and are discussed on a year to date basis only.

PROJECT MATTERHORN

In September 2022, we announced a global program designed to accelerate the growth of our business (“Project Matterhorn”). Project Matterhorn investments will focus on transforming our operating model to a global operating model. This program is designed to allow us to shift from a product-based to a solution-based sales approach to better serve our customers’ needs and establish a global operating model that is designed to allow us to optimize our shared services and best practices. We expect to incur approximately $150.0 million in costs annually related to Project Matterhorn from 2023 through 2025. Total costs related to Project Matterhorn for the three and nine months ended September 30, 2022 were not material.

PROJECT SUMMIT

In October 2019, we announced our global program designed to better position us for future growth and achievement of our strategic objectives ("Project Summit") which we completed as of December 31, 2021. Project Summit has improved annual Adjusted EBITDA (as defined below) by approximately $375.0 million exiting 2021, of which approximately $160.0 million and $165.0 million were realized in 2021 and 2020, respectively, with the remainder realized during 2022.

ACQUISITION OF ITRENEW

On January 25, 2022, in order to expand our asset lifecycle management ("ALM") operations, we acquired an approximately 80% interest in Intercept Parent, Inc. ("ITRenew"). From January 25, 2022, we consolidate 100% of the revenues and expenses associated with this business. ITRenew is presented in Corporate and Other Business and primarily operates in the United States. See Acquisitions within the Liquidity and Capital Resources section below for additional information.

DIVESTMENTS AND DECONSOLIDATIONS

IPM DIVESTMENT

On June 7, 2021, we sold our Intellectual Property Management ("IPM") business, also known as our technology escrow services business, which we predominantly operated in the United States, for total gross consideration of approximately $215.4 million (the "IPM Divestment"). We have concluded that the IPM Divestment does not meet the criteria to be reported as discontinued operations in our consolidated financial statements, as our decision to divest this business does not represent a strategic shift that will have a major effect on our operations and financial results. Accordingly, the revenues and expenses associated with this business are presented as a component of Operating income (loss) in our Condensed Consolidated Statements of Operations through the date of divestment and the cash flows associated with this business is presented as a component of cash flows from operations in our Condensed Consolidated Statements of Cash Flows through the date of divestment. Our IPM business represented approximately $14.2 million of total revenues and approximately $6.8 million of total net income from January 1, 2021 through the date of divestment on June 7, 2021.

DECONSOLIDATIONS

On March 24, 2022, as a result of our loss of control, we deconsolidated the businesses included in the acquisition of OSG Records Management (Europe) Limited, excluding Ukraine. We recognized a loss of approximately $105.8 million 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. Accordingly, the revenues and expenses associated with these businesses are presented as a component of Operating income (loss) in our Condensed Consolidated Statements of Operations through the date of deconsolidation and the cash flows associated with these businesses are presented as a component of Cash flows from operations in our Condensed Consolidated Statements of Cash Flows through the date of the deconsolidation. These businesses represented approximately $44.9 million of total revenues and $7.2 million of total net income for the year ended December 31, 2021.

IRON MOUNTAIN SEPTEMBER 30, 2022 FORM 10-Q									34

Part I. Financial Information

GENERAL

RESULTS OF OPERATIONS - KEY TRENDS

• We have experienced steady volume in our Global RIM Business segment, with organic storage rental revenue growth driven primarily by revenue management. We expect organic storage rental revenue growth to benefit from revenue management and volume to be relatively stable in the near term.

• Our organic service revenue growth is primarily due to increases in our service activity. We expect organic service revenue growth for the remainder of 2022 and into 2023 to benefit from our new and existing digital offerings, as well as our traditional services.

• We expect continued total revenue and Adjusted EBITDA growth in 2022 and into 2023 as a result of our focus on new product and service offerings, innovation, customer solutions and market expansion in line with our Project Matterhorn objectives.

• We expect the impact of a stronger US dollar to create headwinds on reported total revenue and Adjusted EBITDA growth against prior periods through the remainder of 2022 and into 2023.

Cost of sales (excluding depreciation and amortization) and Selling, general and administrative expenses for the nine months ended September 30, 2022 consists of the following:

COST OF SALES						SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

NON-GAAP MEASURES

ADJUSTED EBITDA

We define Adjusted EBITDA as net income (loss) before interest expense, net, provision (benefit) for income taxes, depreciation and amortization (inclusive of our share of Adjusted EBITDA from our unconsolidated joint ventures), and excluding certain items we do not believe to be indicative of our core operating results, specifically:

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

Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenues. We also show Adjusted EBITDA and Adjusted EBITDA Margin for each of our reportable segments under "Results of Operations – Segment Analysis" below.

IRON MOUNTAIN SEPTEMBER 30, 2022 FORM 10-Q									35

Part I. Financial Information

Adjusted EBITDA excludes both interest expense, net and the provision (benefit) for income taxes. These expenses are associated with our capitalization and tax structures, which we do not consider when evaluating the operating profitability of our core operations. Adjusted EBITDA does not include depreciation and amortization expenses, in order to eliminate the impact of capital investments, which we evaluate by comparing capital expenditures to incremental revenue generated and as a percentage of total revenues. Adjusted EBITDA and Adjusted EBITDA Margin should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with accounting principles generally accepted in the United States of America ("GAAP"), such as operating income, net income (loss) or cash flows from operating activities (as determined in accordance with GAAP).

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (IN THOUSANDS):

			THREE MONTHS ENDED SEPTEMBER 30,												NINE MONTHS ENDED SEPTEMBER 30,
			2022						2021						2022						2021
Net Income (Loss)			$	192,931					$	68,111					$	436,496					$	391,264
Add/(Deduct):
Interest expense, net			121,767						103,809						351,266						313,451
Provision (benefit) for income taxes			23,934						28,017						52,097						153,073
Depreciation and amortization			175,077						174,818						536,946						507,145
Acquisition and Integration Costs(1)			5,554						1,138						38,093						3,415
Restructuring charges(2)			3,382						50,432						3,382						129,686
(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate)			(14,170)						(935)						(66,124)						(134,321)
Other (income) expense, net, excluding our share of losses (gains) from our unconsolidated joint ventures			(56,226)						(21,517)						(48,814)						(209,001)
Stock-based compensation expense			14,326						12,644						45,923						45,913
Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures			2,859						1,252						5,869						3,340
Adjusted EBITDA			$	469,434					$	417,769					$	1,355,134					$	1,203,965

(1) Represent operating expenditures directly associated with the closing and integration activities of our business acquisitions that have closed, or are highly probable of closing, and include (i) advisory, legal and professional fees to complete business acquisitions and (ii) costs to integrate acquired businesses into our existing operations, including move, severance, facility upgrade and system integration costs (collectively, "Acquisition and Integration Costs"). Acquisition and Integration Costs do not include costs associated with the formation of joint ventures or costs associated with the acquisition of customer relationships.

(2) Represent operating expenses associated with the implementation of (1) Project Matterhorn for the three and nine months ended September 30, 2022 and (2) Project Summit that primarily consisted of: (i) employee severance costs; (ii) internal costs associated with the development and implementation of Project Summit initiatives; (iii) professional fees, primarily related to third party consultants who assisted with the design and execution of various initiatives as well as project management activities and (iv) system implementation and data conversion costs for the three and nine months ended September 30, 2021.

IRON MOUNTAIN SEPTEMBER 30, 2022 FORM 10-Q									36

Part I. Financial Information

ADJUSTED EPS

We define Adjusted EPS as reported earnings per share fully diluted from net income (loss) attributable to Iron Mountain Incorporated (inclusive of our share of adjusted losses (gains) from our unconsolidated joint ventures) and excluding certain items, specifically:

EXCLUDED
•Acquisition and Integration Costs •Restructuring charges •Amortization related to the write-off of certain customer relationship intangible assets •(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate)						•Other (income) expense, net •Stock-based compensation expense •Tax impact of reconciling items and discrete tax items

We do not believe these excluded items to be indicative of our ongoing operating results, and they are not considered when we are forecasting our future results. We believe Adjusted EPS is of value to our current and potential investors when comparing our results from past, present and future periods.

RECONCILIATION OF REPORTED EPS—FULLY DILUTED FROM NET INCOME (LOSS) ATTRIBUTABLE TO IRON MOUNTAIN INCORPORATED TO ADJUSTED EPS—FULLY DILUTED FROM NET INCOME (LOSS) ATTRIBUTABLE TO IRON MOUNTAIN INCORPORATED:

			THREE MONTHS ENDED SEPTEMBER 30,												NINE MONTHS ENDED SEPTEMBER 30,
			2022						2021						2022						2021
Reported EPS—Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated			$	0.66					$	0.23					$	1.49					$	1.34
Add/(Deduct):
Acquisition and Integration Costs			0.02						—						0.13						0.01
Restructuring charges			0.01						0.17						0.01						0.45
Amortization related to the write-off of certain customer relationship intangible assets			—						—						0.02						—
(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate)			(0.05)						(0.01)						(0.22)						(0.46)
Other (income) expense, net, excluding our share of losses (gains) from our unconsolidated joint ventures			(0.19)						(0.07)						(0.17)						(0.72)
Stock-based compensation expense			0.05						0.04						0.16						0.16
Tax impact of reconciling items and discrete tax items(1)			(0.01)						0.02						(0.09)						0.31
Net Income (Loss) Attributable to Noncontrolling Interests			—						—						0.01						0.01
Adjusted EPS—Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated(2)			$	0.48					$	0.40					$	1.34					$	1.09

(1)The difference between our effective tax rates and our structural tax rate (or adjusted effective tax rates) for the three and nine months ended September 30, 2022 and 2021 is primarily due to (i) the reconciling items above, which impact our reported net income (loss) before provision (benefit) for income taxes but have an insignificant impact on our reported provision (benefit) for income taxes and (ii) other discrete tax items. Our structural tax rate for purposes of the calculation of Adjusted EPS for both the three and nine months ended September 30, 2022 and 2021 was 16.5%. The Tax impact of reconciling items and discrete tax items is calculated using the current quarter's estimate of the annual structural tax rate for the full year. This may result in the current period adjustment plus prior period reported quarterly adjustments not summing to the full year adjustment.

(2)Columns may not foot due to rounding.

IRON MOUNTAIN SEPTEMBER 30, 2022 FORM 10-Q									37

Part I. Financial Information

FFO (NAREIT) AND FFO (NORMALIZED)

Funds from operations ("FFO") is defined by the National Association of Real Estate Investment Trusts ("Nareit") as net income (loss) excluding depreciation on real estate assets, losses and gains on sale of real estate, net of tax, and amortization of data center leased-based intangibles and adjusting for our share of reconciling items from our unconsolidated joint ventures from FFO ("FFO (Nareit)"). FFO (Nareit) does not give effect to real estate depreciation because these amounts are computed, under GAAP, to allocate the cost of a property over its useful life. Because values for well-maintained real estate assets have historically increased or decreased based upon prevailing market conditions, we believe that FFO (Nareit) provides investors with a clearer view of our operating performance. Our most directly comparable GAAP measure to FFO (Nareit) is net income (loss).

Although Nareit has published a definition of FFO, we modify FFO (Nareit), as is common among REITs seeking to provide financial measures that most meaningfully reflect their particular business ("FFO (Normalized)"). Our definition of FFO (Normalized) excludes certain items included in FFO (Nareit) that we believe are not indicative of our core operating results, specifically:

EXCLUDED
•Acquisition and Integration Costs •Restructuring charges •Loss (gain) on disposal/write-down of property, plant and equipment, net (excluding real estate) •Other (income) expense, net						•Stock-based compensation expense •Real estate financing lease depreciation •Tax impact of reconciling items and discrete tax items

RECONCILIATION OF NET INCOME (LOSS) TO FFO (NAREIT) AND FFO (NORMALIZED) (IN THOUSANDS):

			THREE MONTHS ENDED SEPTEMBER 30,												NINE MONTHS ENDED SEPTEMBER 30,
			2022						2021						2022						2021
Net Income (Loss)			$	192,931					$	68,111					$	436,496					$	391,264
Add/(Deduct):
Real estate depreciation			74,652						79,463						228,993						230,294
(Gain) loss on sale of real estate, net of tax			(15,666)						748						(64,430)						(106,033)
Data center lease-based intangible assets amortization			3,687						10,458						11,850						31,423
FFO (Nareit)			255,604						158,780						612,909						546,948
Add/(Deduct):
Acquisition and Integration Costs			5,554						1,138						38,093						3,415
Restructuring charges			3,382						50,432						3,382						129,686
Loss (gain) on disposal/write-down of property, plant and equipment, net (excluding real estate)			2,616						(1,668)						(573)						(2,890)
Other (income) expense, net, excluding our share of losses (gains) from our unconsolidated joint ventures(1)			(56,226)						(21,517)						(48,814)						(209,001)
Stock-based compensation expense			14,326						12,644						45,923						45,913
Real estate financing lease depreciation			3,020						3,740						10,227						10,791
Tax impact of reconciling items and discrete tax items(2)			(5,184)						5,304						(26,090)						65,120
Our share of FFO (Normalized) reconciling items from our unconsolidated joint ventures			223						(17)						577						(30)
FFO (Normalized)			$	223,315					$	208,836					$	635,634					$	589,952

(1)Includes foreign currency transaction (gains) losses, net and other, net. See Note 2.l. to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding the components of Other (income) expense, net.

(2)Represents the tax impact of (i) the reconciling items above, which impact our reported net income (loss) before provision (benefit) for income taxes and (ii) other discrete tax items. Discrete tax items resulted in a (benefit) provision for income taxes of $(1.2) million and $(11.4) million for the three and nine months ended September 30, 2022, respectively, and $5.0 million and $19.4 million for the three and nine months ended September 30, 2021, respectively.

IRON MOUNTAIN SEPTEMBER 30, 2022 FORM 10-Q									38

Part I. Financial Information

CRITICAL ACCOUNTING ESTIMATES

Our discussion and analysis of our financial condition and results of operations are based upon our Condensed Consolidated Financial Statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires us to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities at the date of the financial statements and for the period then ended. On an ongoing basis, we evaluate the estimates used. We base our estimates on historical experience, actuarial estimates, current conditions and various other assumptions that we believe to be reasonable under the circumstances. These estimates form the basis for making judgments about the carrying values of assets and liabilities and are not readily apparent from other sources. Actual results may differ from these estimates. Our critical accounting estimates include the following, which are listed in no particular order:

• Revenue Recognition

• Accounting for Acquisitions

• Impairment of Tangible and Intangible Assets

• Income Taxes

Further detail regarding our critical accounting estimates can be found in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Current Report, and the Consolidated Financial Statements and the Notes included therein. We have determined that no material changes concerning our critical accounting estimates have occurred since December 31, 2021. See Note 2.k. to Notes to Consolidated Financial Statements included in our Current Report for information regarding the reassessment of the composition of our reporting units as a result of the realignment of our global managerial structure during the second quarter of 2022.

RESULTS OF OPERATIONS

COMPARISON OF THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022 TO THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2021 (IN THOUSANDS):

			THREE MONTHS ENDED SEPTEMBER 30,												DOLLAR CHANGE						PERCENTAGE CHANGE
			2022						2021
Revenues			$	1,286,945					$	1,130,148					$	156,797					13.9		%
Operating Expenses			1,001,183						948,712						52,471						5.5		%
Operating Income			285,762						181,436						104,326						57.5		%
Other Expenses, Net			92,831						113,325						(20,494)						(18.1)		%
Net Income (Loss)			192,931						68,111						124,820						183.3		%
Net Income (Loss) Attributable to Noncontrolling Interests			767						428						339						79.2		%
Net Income (Loss) Attributable to Iron Mountain Incorporated			$	192,164					$	67,683					$	124,481					183.9		%
Adjusted EBITDA(1)			$	469,434					$	417,769					$	51,665					12.4		%
Adjusted EBITDA Margin(1)			36.5		%				37.0		%

			NINE MONTHS ENDED SEPTEMBER 30,												DOLLAR CHANGE						PERCENTAGE CHANGE
			2022						2021
Revenues			$	3,824,525					$	3,331,944					$	492,581					14.8		%
Operating Expenses			3,022,852						2,674,174						348,678						13.0		%
Operating Income			801,673						657,770						143,903						21.9		%
Other Expenses, Net			365,177						266,506						98,671						37.0		%
Net Income (Loss)			436,496						391,264						45,232						11.6		%
Net Income (Loss) Attributable to Noncontrolling Interests			1,952						2,693						(741)						(27.5)		%
Net Income (Loss) Attributable to Iron Mountain Incorporated			$	434,544					$	388,571					$	45,973					11.8		%
Adjusted EBITDA(1)			$	1,355,134					$	1,203,965					$	151,169					12.6		%
Adjusted EBITDA Margin(1)			35.4		%				36.1		%

(1)See "Non-GAAP Measures—Adjusted EBITDA" in this Quarterly Report for the definitions of Adjusted EBITDA and Adjusted EBITDA Margin, reconciliation of Net Income (Loss) to Adjusted EBITDA and a discussion of why we believe these non-GAAP measures provide relevant and useful information to our current and potential investors.

IRON MOUNTAIN SEPTEMBER 30, 2022 FORM 10-Q									39

Part I. Financial Information

REVENUES

Total revenues consist of the following (in thousands):

			THREE MONTHS ENDED SEPTEMBER 30,																		PERCENTAGE CHANGE
			2022						2021						DOLLAR CHANGE						ACTUAL						CONSTANT CURRENCY**(1)**						ORGANIC GROWTH**(2)**						IMPACT OF ACQUISITIONS
Storage Rental			$	760,370					$	718,614					$	41,756					5.8		%				9.8		%				9.7		%				0.1		%
Service			526,575						411,534						115,041						28.0		%				32.8		%				21.8		%				11.0		%
Total Revenues			$	1,286,945					$	1,130,148					$	156,797					13.9		%				18.2		%				14.1		%				4.1		%

			NINE MONTHS ENDED SEPTEMBER 30,																		PERCENTAGE CHANGE
			2022						2021						DOLLAR CHANGE						ACTUAL						CONSTANT CURRENCY**(1)**						ORGANIC GROWTH**(2)**						IMPACT OF ACQUISITIONS
Storage Rental			$	2,264,566					$	2,144,942					$	119,624					5.6		%				8.5		%				8.2		%				0.3		%
Service			1,559,959						1,187,002						372,957						31.4		%				35.3		%				19.7		%				15.6		%
Total Revenues			$	3,824,525					$	3,331,944					$	492,581					14.8		%				18.0		%				12.4		%				5.6		%

(1)Constant currency growth rates, which are a non-GAAP measure, are calculated by translating the 2021 results at the 2022 average exchange rates.

(2)Our organic revenue growth rate, which is a non-GAAP measure, represents the year-over-year growth rate of our revenues excluding the impact of business acquisitions, divestitures and foreign currency exchange rate fluctuations. Our organic revenue growth rate includes the impact of acquisitions of customer relationships.

TOTAL REVENUES

For the nine months ended September 30, 2022, the increase in reported revenue was primarily driven by organic storage rental revenue growth and organic service revenue growth and the impact of acquisitions, primarily ITRenew. Foreign currency exchange rate fluctuations decreased our reported revenue growth rate for the nine months ended September 30, 2022 by 3.2% compared to the prior year period.

STORAGE RENTAL REVENUE AND SERVICE REVENUE

Primary factors influencing the change in reported storage rental revenue and reported service revenue for the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021 include the following:

STORAGE RENTAL REVENUE						•organic storage rental revenue growth driven by increased volume in faster growing markets and our Global Data Center Business segment and revenue management; •a 0.7% increase in total global volume excluding deconsolidations (also excluding acquisitions, total global volume increased 0.7%); and •a decrease of $57.5 million due to foreign currency exchange rate fluctuations.
SERVICE REVENUE						•organic service revenue growth reflecting increased service activity levels; •an increase of $167.9 million due to our recent acquisition of ITRenew; and •a decrease of $33.7 million due to foreign currency exchange rate fluctuations.

IRON MOUNTAIN SEPTEMBER 30, 2022 FORM 10-Q									40

Part I. Financial Information

OPERATING EXPENSES

COST OF SALES

Cost of sales (excluding depreciation and amortization) consists of the following expenses (in thousands):

			THREE MONTHS ENDED SEPTEMBER 30,																		PERCENTAGE CHANGE												% OF TOTAL REVENUES												PERCENTAGE CHANGE (FAVORABLE)/ UNFAVORABLE
			2022						2021						DOLLAR CHANGE						ACTUAL						CONSTANT CURRENCY						2022						2021
Labor			$	199,738					$	190,285					$	9,453					5.0		%				9.1		%				15.5		%				16.8		%				(1.3)		%
Facilities			225,233						202,426						22,807						11.3		%				15.8		%				17.5		%				17.9		%				(0.4)		%
Transportation			40,835						33,314						7,521						22.6		%				27.0		%				3.2		%				2.9		%				0.3		%
Product Cost of Sales and Others			80,235						55,638						24,597						44.2		%				51.1		%				6.2		%				4.9		%				1.3		%
Total Cost of sales			$	546,041					$	481,663					$	64,378					13.4		%				18.0		%				42.4		%				42.6		%				(0.2)		%

			NINE MONTHS ENDED SEPTEMBER 30,																		PERCENTAGE CHANGE												% OF TOTAL REVENUES												PERCENTAGE CHANGE (FAVORABLE)/ UNFAVORABLE
			2022						2021						DOLLAR CHANGE						ACTUAL						CONSTANT CURRENCY						2022						2021
Labor			$	604,698					$	578,765					$	25,933					4.5		%				7.6		%				15.8		%				17.4		%				(1.6)		%
Facilities			657,347						593,487						63,860						10.8		%				14.0		%				17.2		%				17.8		%				(0.6)		%
Transportation			118,494						101,241						17,253						17.0		%				20.3		%				3.1		%				3.0		%				0.1		%
Product Cost of Sales and Other			268,600						134,658						133,942						99.5		%				106.5		%				7.0		%				4.0		%				3.0		%
Total Cost of sales			$	1,649,139					$	1,408,151					$	240,988					17.1		%				20.6		%				43.1		%				42.3		%				0.8		%

Primary factors influencing the change in reported Cost of sales for the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021 include the following:

*•*an increase in labor costs driven by an increase in service activity and the impact of recent acquisitions, partially offset by benefits from Project Summit;

*•*an increase in facilities expenses driven by increases in rent expense, reflecting the impact from our sale-leaseback activity during 2021 and the first nine months of 2022 (which we expect to continue for the remainder of 2022 as we continue to look for future opportunities to monetize a small portion of our owned industrial real estate assets as part of our ongoing capital recycling program), as well as increases in utilities and building maintenance costs;

• an increase in product cost of sales and other driven by the acquisition of ITRenew; and

*•*a decrease of $40.9 million due to foreign currency exchange rate fluctuations.

IRON MOUNTAIN SEPTEMBER 30, 2022 FORM 10-Q									41

Part I. Financial Information

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Selling, general and administrative expenses consists of the following expenses (in thousands):

			THREE MONTHS ENDED SEPTEMBER 30,																		PERCENTAGE CHANGE												% OF TOTAL REVENUES												PERCENTAGE CHANGE (FAVORABLE)/ UNFAVORABLE
			2022						2021						DOLLAR CHANGE						ACTUAL						CONSTANT CURRENCY						2022						2021
General, Administrative and Other			$	208,620					$	183,476					$	25,144					13.7		%				17.1		%				16.2		%				16.2		%				—		%
Sales, Marketing and Account Management			76,679						58,120						18,559						31.9		%				37.7		%				6.0		%				5.1		%				0.9		%
Total Selling, general and administrative expenses			$	285,299					$	241,596					$	43,703					18.1		%				22.0		%				22.2		%				21.4		%				0.8		%

			NINE MONTHS ENDED SEPTEMBER 30,																		PERCENTAGE CHANGE												% OF TOTAL REVENUES												PERCENTAGE CHANGE (FAVORABLE)/ UNFAVORABLE
			2022						2021						DOLLAR CHANGE						ACTUAL						CONSTANT CURRENCY						2022						2021
General, Administrative and Other			$	635,827					$	561,686					$	74,141					13.2		%				15.6		%				16.6		%				16.9		%				(0.3)		%
Sales, Marketing and Account Management			225,589						198,412						27,177						13.7		%				16.8		%				5.9		%				6.0		%				(0.1)		%
Total Selling, general and administrative expenses			$	861,416					$	760,098					$	101,318					13.3		%				15.9		%				22.5		%				22.8		%				(0.3)		%

Primary factors influencing the change in reported Selling, general and administrative expenses for the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021 include the following:

• an increase in general, administrative and other expenses, driven by recent acquisitions, higher wages and benefits, employee related costs, information technology costs and professional fees, partially offset by benefits from Project Summit;

• an increase in sales, marketing and account management expenses, driven by recent acquisitions and higher compensation expense, primarily reflecting increased wages and benefits; and

• a decrease of $16.9 million due to foreign currency exchange rate fluctuations.

DEPRECIATION AND AMORTIZATION

Depreciation expense increased by $3.4 million, or 1.0%, for the nine months ended September 30, 2022 compared to the prior year period. See Note 2.h. to Notes to Consolidated Financial Statements included in our Current Report for additional information regarding the useful lives over which our property, plant and equipment is depreciated.

Amortization expense increased by $26.4 million, or 16.5%, for the nine months ended September 30, 2022 compared to the prior year period primarily driven by the amortization of the intangible assets acquired in the ITRenew Transaction.

ACQUISITION AND INTEGRATION COSTS

Acquisition and Integration Costs for the nine months ended September 30, 2022 were approximately $38.1 million and primarily consist of legal and professional fees.

(GAIN) LOSS ON DISPOSAL/WRITE-DOWN OF PROPERTY, PLANT AND EQUIPMENT, NET

Gain on disposal/write-down of property, plant and equipment, net for the nine months ended September 30, 2022 was approximately $66.1 million. The gain primarily consists of gains of approximately $66.0 million associated with sale and sale-leaseback transactions, of which (i) approximately $17.0 million relates to sale-leaseback transactions of two facilities in the United States and one in Canada during the third quarter of 2022 and (ii) approximately $49.0 million relates to sale and sale-leaseback transactions of 11 facilities and parcels of land in the United States during the second quarter of 2022.

Gain on disposal/write-down of property, plant and equipment, net for the nine months ended September 30, 2021 was approximately $134.3 million, which primarily consists of gains of approximately $127.4 million associated with sale-leaseback transactions of five facilities in the United Kingdom during the second quarter of 2021.

IRON MOUNTAIN SEPTEMBER 30, 2022 FORM 10-Q									42

Part I. Financial Information

OTHER EXPENSES, NET

INTEREST EXPENSE, NET

Interest expense, net increased by $37.8 million to $351.3 million in the nine months ended September 30, 2022 from $313.5 million in the prior year period, primarily driven by increases in average debt balances and the weighted average interest rate on our outstanding debt at September 30, 2022. See Note 6 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding our indebtedness.

OTHER (INCOME) EXPENSE, NET

Other (income) expense, net consists of the following (in thousands):

						THREE MONTHS ENDED SEPTEMBER 30,												DOLLAR CHANGE						NINE MONTHS ENDED SEPTEMBER 30,												DOLLAR CHANGE
DESCRIPTION						2022						2021									2022						2021
Foreign currency transaction (gains) losses, net(1)						$	(58,519)					$	(23,200)					$	(35,319)					$	(126,759)					$	(16,157)					$	(110,602)
Debt extinguishment expense						—						—						—						671						—						671
Other, net(2)						5,649						4,699						950						87,902						(183,861)						271,763
Other (Income) Expense, Net						$	(52,870)					$	(18,501)					$	(34,369)					$	(38,186)					$	(200,018)					$	161,832

(1)We recognized net foreign currency transaction gains of $58.5 million and $126.8 million for the three and nine months ended September 30, 2022, respectively. These gains primarily consist of the impact of changes in the exchange rate of the Euro and the British pound sterling against the United States dollar on our intercompany balances with and between certain of our subsidiaries.

(2)On March 24, 2022, as a result of our loss of control, we deconsolidated the businesses included in the acquisition of OSG Records Management (Europe) Limited, excluding Ukraine. We recognized a loss of approximately $105.8 million 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. The loss was partially offset by a gain recorded in the first quarter of 2022 of approximately $35.8 million associated with the Clutter Transaction (as defined below).

PROVISION FOR INCOME TAXES

We provide for income taxes during interim periods based on our estimate of the effective tax rate for the year. Our effective tax rates for the three and nine months ended September 30, 2022 and 2021 are as follows:

			THREE MONTHS ENDED SEPTEMBER 30,												NINE MONTHS ENDED SEPTEMBER 30,
			2022**(1)**						2021						2022**(1)**						2021
Effective Tax Rate			11.0		%				29.1		%				10.7		%				28.1		%

(1)The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three and nine months ended September 30, 2022 were the benefits derived from the dividends paid deduction and the differences in the tax rates to which our foreign earnings are subject. In addition, there were gains and losses recorded in Other (income) expense, net and Gain (loss) on disposal/write-down of property, plant and equipment, net, during the period for which there was an insignificant tax impact. During the first quarter of 2022, there was also a release of valuation allowances on deferred tax assets of our U.S. taxable REIT subsidiaries ("TRS") of approximately $9.9 million as a result of the ITRenew Transaction (as defined below).

IRON MOUNTAIN SEPTEMBER 30, 2022 FORM 10-Q									43

Part I. Financial Information

NET INCOME (LOSS) AND ADJUSTED EBITDA

The following table reflects the effect of the foregoing factors on our Net Income (Loss) and Adjusted EBITDA (in thousands):

			THREE MONTHS ENDED SEPTEMBER 30,												DOLLAR CHANGE						PERCENTAGE CHANGE
			2022						2021
Net Income (Loss)			$	192,931					$	68,111					$	124,820					183.3		%
Net Income (Loss) as a percentage of Revenue			15.0		%				6.0		%
Adjusted EBITDA			$	469,434					$	417,769					$	51,665					12.4		%
Adjusted EBITDA Margin			36.5		%				37.0		%

			NINE MONTHS ENDED SEPTEMBER 30,												DOLLAR CHANGE						PERCENTAGE CHANGE
			2022						2021
Net Income (Loss)			$	436,496					$	391,264					$	45,232					11.6		%
Net Income (Loss) as a percentage of Revenue			11.4		%				11.7		%
Adjusted EBITDA			$	1,355,134					$	1,203,965					$	151,169					12.6		%
Adjusted EBITDA Margin			35.4		%				36.1		%

Adjusted EBITDA Margin for the nine months ended September 30, 2022 decreased by 70 basis points compared to the same prior year period, primarily reflecting a 150 basis point decrease from the acquisition of ITRenew, partially offset by improved service revenue trends, benefits from Project Summit, revenue management and ongoing cost containment measures.			↑ INCREASED BY $151.2 MILLION OR 12.6% Adjusted EBITDA

IRON MOUNTAIN SEPTEMBER 30, 2022 FORM 10-Q									44

Part I. Financial Information

SEGMENT ANALYSIS

See Note 9 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report, for a description of our reportable segments. Previously reported segment information has been restated to conform to the current presentation.

GLOBAL RIM BUSINESS (IN THOUSANDS)

			THREE MONTHS ENDED SEPTEMBER 30,																		PERCENTAGE CHANGE
						DOLLAR CHANGE						ACTUAL						CONSTANT CURRENCY						ORGANIC GROWTH						IMPACT OF ACQUISITIONS
			2022						2021
Storage Rental			$	650,141					$	633,403					$	16,738					2.6		%				6.6		%				7.1		%				(0.5)		%
Service			440,961						364,440						76,521						21.0		%				25.3		%				25.6		%				(0.3)		%
Segment Revenue			$	1,091,102					$	997,843					$	93,259					9.3		%				13.4		%				13.9		%				(0.5)		%
Segment Adjusted EBITDA			$	483,862					$	435,904					$	47,958
Segment Adjusted EBITDA Margin			44.3		%				43.7		%

			NINE MONTHS ENDED SEPTEMBER 30,																		PERCENTAGE CHANGE
						DOLLAR CHANGE						ACTUAL						CONSTANT CURRENCY						ORGANIC GROWTH						IMPACT OF ACQUISITIONS
			2022						2021
Storage Rental			$	1,949,999					$	1,883,967					$	66,032					3.5		%				6.5		%				6.0		%				0.5		%
Service			1,260,470						1,087,118						173,352						15.9		%				19.2		%				18.7		%				0.5		%
Segment Revenue			$	3,210,469					$	2,971,085					$	239,384					8.1		%				11.1		%				10.7		%				0.4		%
Segment Adjusted EBITDA			$	1,402,025					$	1,263,277					$	138,748
Segment Adjusted EBITDA Margin			43.7		%				42.5		%

NINE MONTHS ENDED YEAR OVER YEAR SEGMENT ANALYSIS: GLOBAL RIM BUSINESS (IN MILLIONS)

Storage Rental Revenue						Service Revenue						Segment Revenue						Segment Adjusted EBITDA

Primary factors influencing the change in revenue and Adjusted EBITDA Margin in our Global RIM Business segment for the nine months ended September 30, 2022 compared to the prior year period include the following:

• organic storage rental revenue growth driven by revenue management and volume;

*•*a 0.7% increase in Global RIM volume excluding deconsolidations (also excluding acquisitions, Global RIM volume increased 0.7%);

• organic service revenue growth mainly driven by increases in our traditional service activity levels and growth in our Global Digital Solutions business;

*•*a decrease in revenue of $81.8 million due to foreign currency exchange rate fluctuations; and

*•*a 120 basis point increase in Adjusted EBITDA Margin primarily driven by revenue management, benefits from Project Summit and ongoing cost containment measures.

IRON MOUNTAIN SEPTEMBER 30, 2022 FORM 10-Q									45

Part I. Financial Information

GLOBAL DATA CENTER BUSINESS (IN THOUSANDS)

			THREE MONTHS ENDED SEPTEMBER 30,																		PERCENTAGE CHANGE
						DOLLAR CHANGE						ACTUAL						CONSTANT CURRENCY						ORGANIC GROWTH						IMPACT OF ACQUISITIONS
			2022						2021
Storage Rental			$	96,328					$	72,411					$	23,917					33.0		%				37.3		%				32.6		%				4.7		%
Service			3,981						16,176						(12,195)						(75.4)		%				(73.4)		%				(74.3)		%				0.9		%
Segment Revenue			$	100,309					$	88,587					$	11,722					13.2		%				17.9		%				13.3		%				4.6		%
Segment Adjusted EBITDA			$	42,660					$	35,097					$	7,563
Segment Adjusted EBITDA Margin			42.5		%				39.6		%

			NINE MONTHS ENDED SEPTEMBER 30,																		PERCENTAGE CHANGE
						DOLLAR CHANGE						ACTUAL						CONSTANT CURRENCY						ORGANIC GROWTH						IMPACT OF ACQUISITIONS
			2022						2021
Storage Rental			$	273,547					$	210,805					$	62,742					29.8		%				32.7		%				27.7		%				5.0		%
Service			23,837						25,867						(2,030)						(7.8)		%				(1.5)		%				(3.5)		%				2.0		%
Segment Revenue			$	297,384					$	236,672					$	60,712					25.7		%				29.1		%				24.3		%				4.8		%
Segment Adjusted EBITDA			$	126,944					$	98,961					$	27,983
Segment Adjusted EBITDA Margin			42.7		%				41.8		%

NINE MONTHS ENDED YEAR OVER YEAR SEGMENT ANALYSIS: GLOBAL DATA CENTER BUSINESS (IN MILLIONS)

Storage Rental Revenue						Service Revenue						Segment Revenue						Segment Adjusted EBITDA

Primary factors influencing the change in revenue, Adjusted EBITDA and Adjusted EBITDA Margin in our Global Data Center Business segment for the nine months ended September 30, 2022 compared to the prior year period include the following:

• organic storage rental revenue growth from leases that commenced during the first nine months of 2022 and in prior periods and higher pass-through power costs, partially offset by churn of 320 basis points;

*•*an increase in Adjusted EBITDA primarily driven by organic storage rental revenue growth; and

*•*a 90 basis point increase in Adjusted EBITDA Margin reflecting ongoing cost management and a decline in lower margin project revenue, partially offset by higher pass-through power costs.

The organic service revenue decline for the three months ended September 30, 2022 compared to the prior year period is the result of the completion of special project work during the second quarter of 2022.

IRON MOUNTAIN SEPTEMBER 30, 2022 FORM 10-Q									46

Part I. Financial Information

CORPORATE AND OTHER BUSINESS (IN THOUSANDS)

			THREE MONTHS ENDED SEPTEMBER 30,																		PERCENTAGE CHANGE
						DOLLAR CHANGE						ACTUAL						CONSTANT CURRENCY						ORGANIC GROWTH						IMPACT OF ACQUISITIONS
			2022						2021
Storage Rental			$	13,900					$	12,800					$	1,100					8.6		%				11.1		%				8.7		%				2.4		%
Service			81,634						30,918						50,716						164.0		%				175.5		%				26.9		%				148.6		%
Revenue			$	95,534					$	43,718					$	51,816					118.5		%				126.7		%				21.5		%				105.2		%
Adjusted EBITDA			$	(57,088)					$	(53,232)					$	(3,856)
Adjusted EBITDA as a percentage of Consolidated Revenue			(4.4)		%				(4.7)		%

			NINE MONTHS ENDED SEPTEMBER 30,																		PERCENTAGE CHANGE
						DOLLAR CHANGE						ACTUAL						CONSTANT CURRENCY						ORGANIC GROWTH						IMPACT OF ACQUISITIONS
			2022						2021
Storage Rental			$	41,019					$	50,170					$	(9,151)					(18.2)		%				(17.4)		%				8.5		%				(25.9)		%
Service			275,653						74,017						201,636						272.4		%				285.4		%				42.4		%				243.0		%
Revenue			$	316,672					$	124,187					$	192,485					155.0		%				161.3		%				31.1		%				130.2		%
Adjusted EBITDA			$	(173,835)					$	(158,273)					$	(15,562)
Adjusted EBITDA as a percentage of Consolidated Revenue			(4.5)		%				(4.8)		%

Primary factors influencing the change in revenue and Adjusted EBITDA in Corporate and Other Business for the nine months ended September 30, 2022 compared to the prior year period include the following:

• a decrease in reported storage revenue reflecting the IPM Divestment in the second quarter of 2021;

• reported service revenue for the nine months ended September 30, 2022 includes $167.9 million from the acquisition of ITRenew;

• organic service revenue growth mainly driven by increased service activity levels in our Fine Arts and ALM businesses; and

*•*a decrease in Adjusted EBITDA driven by higher compensation expense and employee related costs, professional fees and the impact of the IPM Divestment in the second quarter of 2021, partially offset by benefits from Project Summit, improved service revenue trends and the impact of the acquisition of ITRenew.

IRON MOUNTAIN SEPTEMBER 30, 2022 FORM 10-Q									47

Part I. Financial Information

LIQUIDITY AND CAPITAL RESOURCES

GENERAL

We expect to meet our short-term and long-term cash flow requirements through cash generated from operations, cash on hand, borrowings under our Credit Agreement (as defined below) and proceeds from monetizing a small portion of our total industrial real estate assets in the future, as well as other potential financings (such as the issuance of debt or equity). Our cash flow requirements, both in the near and long term, include, but are not limited to, capital expenditures, the repayment of outstanding debt, shareholder dividends, potential and pending business acquisitions and investments and normal business operation needs.

CASH FLOWS

The following is a summary of our cash balances and cash flows (in thousands) as of and for the nine months ended September 30,

			2022						2021
Cash Flows from Operating Activities			$	560,355					$	463,337
Cash Flows from Investing Activities			(1,303,760)						(319,785)
Cash Flows from Financing Activities			658,447						(177,587)
Cash and Cash Equivalents, End of Period			155,223						161,439

A. CASH FLOWS FROM OPERATING ACTIVITIES

For the nine months ended September 30, 2022, net cash flows provided by operating activities increased by $97.0 million compared to the prior year period, primarily due to an increase in net income (excluding non-cash charges) of $246.1 million, partially offset by a decrease in cash from working capital of $149.1 million, primarily related to the timing of accounts payable and accrued expenses and collections of accounts receivable.

B. CASH FLOWS FROM INVESTING ACTIVITIES

Our significant investing activity during the nine months ended September 30, 2022 included:

• We paid cash for capital expenditures of $596.8 million. Additional details of our capital spending are included in the "Capital Expenditures" section below.

• We paid cash for acquisitions (net of cash acquired) of $724.2 million, primarily funded by cash on hand and borrowings under our Revolving Credit Facility (as defined in Note 6 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report).

• We received $119.4 million in net proceeds from sales of property, plant and equipment, primarily related to proceeds from sale and sale-leaseback transactions of 14 facilities and parcels of land in the United States and Canada during the second and third quarters of 2022.

C. CASH FLOWS FROM FINANCING ACTIVITIES

Our significant financing activities during the nine months ended September 30, 2022 included:

• Net proceeds of $1,201.5 million primarily associated with borrowings under the Revolving Credit Facility, Term Loan A and the Accounts Receivable Securitization Program.

• Payment of dividends in the amount of $544.1 million on our common stock.

IRON MOUNTAIN SEPTEMBER 30, 2022 FORM 10-Q									48

Part I. Financial Information

CAPITAL EXPENDITURES

The following table presents our capital spend for the nine months ended September 30, 2022 and 2021, organized by the type of the spending as described in our Current Report (in thousands):

						NINE MONTHS ENDED SEPTEMBER 30,
NATURE OF CAPITAL SPEND						2022						2021
Growth Investment Capital Expenditures:
Data Center						$	396,015					$	209,097
Real Estate						114,374						60,558
Innovation and Other						30,808						15,445
Total Growth Investment Capital Expenditures						541,197						285,100
Recurring Capital Expenditures:
Real Estate						$	44,294					$	43,398
Non-Real Estate						52,442						52,153
Data Center						9,420						6,936
Total Recurring Capital Expenditures						106,156						102,487
Total Capital Spend (on accrual basis)						$	647,353					$	387,587
Net increase (decrease) in prepaid capital expenditures						(960)						279
Net decrease (increase) in accrued capital expenditures						(49,592)						31,110
Total Capital Spend (on cash basis)						$	596,801					$	418,976

Excluding capital expenditures associated with potential future acquisitions, we expect total capital expenditures of approximately $950.0 million for the year ending December 31, 2022. Of this, we expect our capital expenditures for growth investment to be approximately $800.0 million, and our recurring capital expenditures to approach $155.0 million.

DIVIDENDS

See Note 8 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for a listing of dividends that we declared during the first nine months of 2022 and fiscal year 2021.

On November 3, 2022, we declared a dividend to our stockholders of record as of December 15, 2022 of $0.6185 per share, payable on January 5, 2023.

IRON MOUNTAIN SEPTEMBER 30, 2022 FORM 10-Q									49

Part I. Financial Information

FINANCIAL INSTRUMENTS AND DEBT

Financial instruments that potentially subject us to credit risk consist principally of cash and cash equivalents (including money market funds and time deposits) and accounts receivable. The only significant concentration of liquid investments as of September 30, 2022 is related to cash and cash equivalents. See Note 2.f. to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for information on our money market funds and time deposits.

Long-term debt as of September 30, 2022 is as follows (in thousands):

			SEPTEMBER 30, 2022
			DEBT (INCLUSIVE OF DISCOUNT)						UNAMORTIZED DEFERRED FINANCING COSTS						CARRYING AMOUNT
Revolving Credit Facility			$	890,000					$	(7,899)					$	882,101
Term Loan A			243,750						—						243,750
Term Loan B			667,766						(4,059)						663,707
Australian Dollar Term Loan			193,140						(464)						192,676
UK Bilateral Revolving Credit Facility			155,887						(175)						155,712
37/8% GBP Senior Notes due 2025 (the "GBP Notes")			445,392						(2,593)						442,799
47/8% Senior Notes due 2027 (the "47/8% Notes due 2027")(1)			1,000,000						(7,110)						992,890
51/4% Senior Notes due 2028 (the "51/4% Notes due 2028")(1)			825,000						(6,495)						818,505
5% Senior Notes due 2028 (the "5% Notes due 2028")(1)			500,000						(4,220)						495,780
47/8% Senior Notes due 2029 (the "47/8% Notes due 2029")(1)			1,000,000						(10,126)						989,874
51/4% Senior Notes due 2030 (the "51/4% Notes due 2030")(1)			1,300,000						(11,783)						1,288,217
41/2% Senior Notes due 2031 (the "41/2% Notes")(1)			1,100,000						(10,471)						1,089,529
5% Senior Notes due 2032 (the "5% Notes due 2032")			750,000						(12,827)						737,173
55/8% Senior Notes due 2032 (the "55/8% Notes")(1)			600,000						(5,711)						594,289
Real Estate Mortgages, Financing Lease Liabilities and Other			407,646						(643)						407,003
Accounts Receivable Securitization Program			316,700						(584)						316,116
Total Long-term Debt			10,395,281						(85,160)						10,310,121
Less Current Portion			(81,275)						—						(81,275)
Long-term Debt, Net of Current Portion			$	10,314,006					$	(85,160)					$	10,228,846

(1)Collectively, the "Parent Notes".

See Note 7 to Notes to Consolidated Financial Statements included in our Current Report and Note 6 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding our long-term debt.

CREDIT AGREEMENT

Our credit agreement (the "Credit Agreement") consists of a revolving credit facility (the "Revolving Credit Facility"), a term loan A (the "Term Loan A") and a term loan B (the "Term Loan B"). On March 18, 2022, we entered into an amendment to the Credit Agreement which included the following changes:

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

(ii) refinanced and increased the borrowing capacity that IMI and certain of its United States and foreign subsidiaries are able to borrow under the Revolving Credit Facility from $1,750.0 million to $2,250.0 million;

(iii) refinanced the existing Term Loan A with a new $250.0 million Term Loan A; and

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

On March 18, 2022, we borrowed the full amount of the Term Loan A. As of September 30, 2022, we had $890.0 million, $243.8 million and $668.5 million of outstanding borrowings under the Revolving Credit Facility, Term Loan A and Term Loan B, respectively. In addition, we also had various outstanding letters of credit totaling $3.8 million. The remaining amount available for borrowing under the Revolving Credit Facility as of September 30, 2022 was $1,356.2 million (which represents the maximum availability as of such date). 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, subject to a cap contained therein.

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Part I. Financial Information

AUSTRALIAN DOLLAR TERM LOAN

Iron Mountain Australia Group Pty, Ltd. ("IM Australia"), a wholly owned subsidiary of IMI, has an AUD term loan with an original principal balance of 350.0 million Australian dollars ("AUD Term Loan"). On March 18, 2022, IM Australia amended its AUD Term Loan to (i) extend the maturity date from September 22, 2022 to September 30, 2026 and (ii) decrease the interest rate from BBSY (an Australian benchmark variable interest rate) plus 3.875% to BBSY plus 3.625%. All other terms of the AUD Term Loan remain consistent with what was disclosed in Note 7 to Notes to Consolidated Financial Statements included in our Current Report.

UK BILATERAL REVOLVING CREDIT FACILITY

Iron Mountain (UK) PLC and Iron Mountain (UK) Data Centre Limited (collectively, the "UK Borrowers") have a British pounds sterling Revolving Credit Facility (the "UK Bilateral Revolving Credit Facility") with Barclays Bank PLC. The maximum amount permitted to be borrowed under the UK Bilateral Revolving Credit Facility is 140.0 million British pounds sterling, which was fully drawn as of September 30, 2022. We have the option to request additional commitments of up to 125.0 million British pounds sterling, subject to conditions specified in the UK Bilateral Revolving Credit Facility. On September 22, 2022, the UK Borrowers exercised their option to extend the maturity date from September 24, 2023 to September 24, 2024. All other material terms of the UK Bilateral Revolving Credit Facility remain consistent with what was disclosed in Note 7 to Notes to Consolidated Financial Statements included in our Current Report.

ACCOUNTS RECEIVABLE SECURITIZATION PROGRAM

On June 29, 2022, we amended the Accounts Receivable Securitization Program to (i) increase the maximum borrowing capacity from $300.0 million to $325.0 million, with an option to increase the borrowing capacity to $400.0 million, (ii) change the interest rate under Accounts Receivable Securitization Program from LIBOR plus 1.0% to SOFR plus 0.95%, with a credit spread adjustment of 0.10% and (iii) extend the maturity date from July 1, 2023 to July 1, 2025, at which point all obligations become due. All other material terms of the Accounts Receivable Securitization Program remain consistent with what was disclosed in Note 7 to Notes to Consolidated Financial Statements included in our Current Report.

CASH POOLING

During the third quarter of 2022, we entered into two new cash pooling arrangements with JP Morgan Chase Bank, N.A. ("JPM"), one of which we utilize to manage global liquidity requirements for our qualified REIT subsidiaries ("QRSs") in the Europe, Middle East, and Africa regions (the "JPM QRS EMEA Cash Pool") and the other for our TRSs in the Europe, Middle East, and Africa regions (the "JPM TRS EMEA Cash Pool"). We continue to utilize our two other cash pooling arrangements with JPM, one of which we utilize to manage global liquidity requirements for our QRSs in the Asia Pacific region (the "JPM QRS APAC Cash Pool") and the other for our TRSs in the Asia Pacific region (the "JPM TRS APAC Cash Pool").

Additionally, we utilize two separate cash pooling arrangements with Bank Mendes Gans ("BMG"), one of which we utilize to manage global liquidity requirements for our QRSs (the "BMG QRS Cash Pool") and the other for our TRSs (the "BMG TRS Cash Pool").

LETTERS OF CREDIT

As of September 30, 2022, we had outstanding letters of credit totaling $37.2 million of which $3.8 million reduce our borrowing capacity under the Revolving Credit Facility. The letters of credit expire at various dates between October 2022 and January 2033.

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Part I. Financial Information

DEBT COVENANTS

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

The Credit Agreement uses earnings before interest, taxes, depreciation and amortization and rent expense ("EBITDAR") based calculations and the bond indentures use earnings before interest, 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 for purposes of those calculations under the Credit Agreement and bond indentures not directly comparable to Adjusted EBITDA as presented herein. These adjustments can be significant. For example, the calculation of financial performance under the Credit Agreement and certain of our bond indentures includes (subject to specified exceptions and caps) adjustments for non-cash charges and for expected benefits associated with (i) completed acquisitions, (ii) certain executed lease agreements associated with our data center business that have yet to commence, and (iii) restructuring and other strategic initiatives, such as Project Summit and Project Matterhorn. The calculation of financial performance under our other bond indentures includes, for example, adjustments for non-cash charges and for expected benefits associated with (i) completed acquisitions, and (ii) events that are extraordinary, unusual or non-recurring.

Our leverage and fixed charge coverage ratios under the Credit Agreement as of September 30, 2022 are as follows:

			SEPTEMBER 30, 2022												MAXIMUM/MINIMUM ALLOWABLE
Net total lease adjusted leverage ratio			5.2												Maximum allowable of 7.0
Fixed charge coverage ratio			2.5												Minimum allowable of 1.5

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 September 30, 2022. Noncompliance with these leverage and fixed charge coverage ratios would have a material adverse effect on our financial condition and liquidity.

Our ability to pay interest on or to refinance our indebtedness depends on our future performance, working capital levels and capital structure, which are subject to general economic, financial, competitive, legislative, regulatory and other factors which may be beyond our control. There can be no assurance that we will generate sufficient cash flow from our operations or that future financings will be available on acceptable terms or in amounts sufficient to enable us to service or refinance our indebtedness or to make necessary capital expenditures.

DERIVATIVE INSTRUMENTS

INTEREST RATE SWAP AGREEMENTS

In March 2018, we entered into interest rate swap agreements to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness. These swap agreements expired in March 2022. In July 2019, we entered into forward-starting interest rate swap agreements to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness. As of September 30, 2022, we had $350.0 million in notional value outstanding on the interest rate swap agreements, which expire in March 2024. Under the interest rate swap agreements, we receive variable rate interest payments associated with the notional amount of each interest rate swap, based upon one-month LIBOR, in exchange for the payment of fixed interest rates as specified in the interest rate swap agreements.

We have designated these interest rate swap agreements as cash flow hedges.

CROSS-CURRENCY SWAP AGREEMENTS

We enter into cross-currency swap agreements to hedge the variability of exchange rate impacts between the United States dollar and the Euro. The cross-currency swap agreements are designated as a hedge of net investment against certain of our Euro denominated subsidiaries and require an exchange of the notional amounts at maturity.

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Part I. Financial Information

In August 2019, we entered into cross-currency swap agreements whereby we notionally exchanged approximately $110.0 million at an interest rate of 6.0% for approximately 99.1 million Euros at a weighted average interest rate of approximately 3.65%. These cross-currency swap agreements expire in August 2023.

In September 2020, we entered into cross-currency swap agreements to hedge the variability of exchange rate impacts between the United States dollar and the Euro. Under the terms of the cross-currency swap agreements, we notionally exchanged approximately $359.2 million at an interest rate of 4.5% for 300.0 million Euros at a weighted average interest rate of approximately 3.4%. These cross-currency swap agreements were set to expire in February 2026. In May 2022, these cross-currency swaps were amended ("February 2026 Cross-Currency Swap Agreements"). Under the terms of the February 2026 Cross-Currency Swap Agreements we notionally exchanged approximately $359.2 million at an interest rate of 4.5% for approximately 340.5 million Euros at a weighted average interest rate of approximately 1.2%. These February 2026 Cross-Currency Swap Agreements are set to expire in February 2026.

See Note 5 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information on our derivative instruments.

ACQUISITIONS

ITRENEW ACQUISITION

On January 25, 2022, we acquired an approximately 80% interest in ITRenew, at an agreed upon purchase price of $725.0 million, subject to certain working capital adjustments at, and subsequent to, the closing (the "ITRenew Transaction"). At closing, we paid approximately $748.8 million and acquired approximately $30.7 million of cash on hand, for a net purchase price of approximately $718.1 million for the ITRenew Transaction. The acquisition agreement provides us the option to purchase, and provides the shareholders of ITRenew the option to sell, the remaining approximately 20% interest in ITRenew as follows: (i) approximately 16% on or after the second anniversary of the ITRenew Transaction and (ii) approximately 4% on or after the third anniversary of the ITRenew Transaction (collectively, the "Remaining Interests"). The total payments for the Remaining Interests, based on the achievement of certain targeted performance metrics, will be no less than $200.0 million and no more than $531.0 million (the "Deferred Purchase Obligation"). The maximum amount of the Deferred Purchase Obligation would require achievement of the targeted performance metrics at approximately two times the level that is assumed in our fair value estimate of the Deferred Purchase Obligation of $275.1 million. From January 25, 2022, we consolidate 100% of the revenues and expenses associated with this business. The Deferred Purchase Obligation is reflected as a long-term liability in our Condensed Consolidated Balance Sheet at September 30, 2022, and, accordingly, we have not reflected any non-controlling interests associated with the ITRenew Transaction as the Remaining Interests have non-substantive equity interest rights. Subsequent increases or decreases in the fair value estimate of the Deferred Purchase Obligation will be included as a component of Other (income) expense, net in our Consolidated Statements of Operations until the Deferred Purchase Obligation is settled or paid.

OTHER 2022 ACQUISITIONS

In addition to the ITRenew Transaction, during the nine months ended September 30, 2022, in order to enhance our existing operations in Morocco and expand our fine arts operations in China - Hong Kong S.A.R. and North America, we completed the acquisition of a records management company, a fine arts company and the assets of a second fine arts company, for a total purchase price of approximately $11.0 million, including deferred purchase obligation, purchase price holdbacks and other deferred payments of approximately $4.6 million.

On October 5, 2022, in order to further expand our data center operations in Europe, we completed the acquisition of assets of XData Properties, a data center colocation space and solutions provider with a data center in Spain, for (i) cash consideration of 78.9 million Euros (or approximately $78.2 million, 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 10.0 million Euros (or approximately $9.9 million, 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.

INVESTMENTS

In February 2022, the joint venture formed by MakeSpace Labs, Inc. and us (the "MakeSpace JV") entered into an agreement with Clutter, Inc. ("Clutter") pursuant to which the equityholders of the MakeSpace JV contributed their ownership interests in the MakeSpace JV and Clutter’s shareholders contributed their ownership interests in Clutter to create a newly formed venture (the "Clutter JV"). In exchange for our 49.99% interest in the MakeSpace JV, we received an approximate 27% interest in the Clutter JV (the "Clutter Transaction"). As a result of the Clutter Transaction, we recognized a gain related to our contributed interest in the MakeSpace JV of approximately $35.8 million, which was recorded to Other, net, a component of Other expense (income), net during the first quarter of 2022.

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Part I. Financial Information

In April 2021, we closed on an agreement to form a joint venture (the "Web Werks JV") with the shareholders of Web Werks India Private Limited ("Web Werks"), a colocation data center provider in India. In connection with the formation of the Web Werks JV, we made an initial investment of approximately 3,750.0 million Indian rupees (or approximately $50.1 million, based upon the exchange rate between the United States dollar and Indian rupee as of the closing date of the initial investment) in exchange for a noncontrolling interest in the form of convertible preference shares in the Web Werks JV. Under the terms of the Web Werks JV shareholder agreement, we are required to make additional investments over a period ending May 2023 totaling approximately 7,500.0 million Indian rupees. In August 2022, we made an additional investment of approximately 3,750.0 million Indian rupees (or approximately $46.1 million, based on the exchange rate between the United States dollar and Indian rupee as of the date of the additional investment) in exchange for an additional interest in the form of convertible preference shares in the Web Werks JV.

JOINT VENTURE SUMMARY

The following joint ventures are accounted for as equity method investments and are presented as a component of Other within Other assets, net in our Condensed Consolidated Balance Sheets. The carrying values and equity interests in our joint ventures at September 30, 2022 and December 31, 2021 are as follows (in thousands):

						SEPTEMBER 30, 2022												DECEMBER 31, 2021
						CARRYING VALUE						EQUITY INTEREST						CARRYING VALUE						EQUITY INTEREST
Web Werks JV						$	97,877					55.40		%				$	51,140					38.50		%
Joint venture with AGC Equity Partners						27,004						20.00		%				26,167						20.00		%
MakeSpace JV						—						—		%				30,154						49.99		%
Clutter JV						57,113						26.73		%				—						—		%

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Part I. Financial Information