Exhibit 99.1

Selected Sites of Verizon’s Colocation

and Data Center Interconnect Operations

Abbreviated Financial Statements

At March 31, 2017

And For the Three Months Ended

March 31, 2017 and 2016

Selected Sites of Verizon’s Colocation and Data Center Interconnect Operations

Index to Abbreviated Financial Statements

 

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

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

Notes to Abbreviated Financial Statements (unaudited)

1. Organization

Verizon Communications Inc.’s (“Verizon”) data center and cloud services business (“Data Center Business”) was a component of its Wireline segment and was a global provider of managed IT solutions with data centers in the United States, Europe, Asia and Latin America. The Data Center Business provided carrier neutral colocation, managed services, cloud services, security services and exchange point services to more than 2,200 customers worldwide across a broad range of sectors, including enterprises, government agencies, systems integrators, Internet content and portal companies and network providers.

The Data Center Business included 54 owned and leased customer facing data centers, including 23 in the United States, two in Canada, 18 in Europe, Middle East and Africa, nine in Asia Pacific and two in South America. The Data Center Business acquired eight of these facilities through Verizon’s acquisition of Terremark in 2011. The Data Center Business’ primary products or services included colocation, data center interconnect services, managed services, cloud services, security services and exchange point services.

Verizon’s Colocation and Data Center Interconnect Operations was comprised of the colocation and certain data center interconnect revenue and direct expenses generated by certain Data Center Business locations, including the related owned and leased data center assets. Data center interconnect revenue was comprised of data center network transport and data center network switch fabric services.

The sale of Selected Sites of Verizon's Colocation and Data Center Interconnect Operations (“Group”) to Equinix, Inc. (“Acquirer”) closed on May 1, 2017 (“Closing”).

2. Basis of Presentation and Significant Accounting Policies

Verizon and Equinix, Inc. entered into a transaction agreement (“TA”) dated December 6, 2016 whereby, the Acquirer agreed to purchase the operations and certain operating assets, as defined, related to the Group in return for approximately $3.6 billion in cash.

The Group includes the following data center sites:

United States

* these sites exclude certain assets that will not be acquired by the Acquirer.

Latin America  

The Group is not a separate legal entity and has never operated as a separate entity, subsidiary or division of Verizon. The Group’s operations do not represent a substantial portion of Verizon’s operations, assets or liabilities. Verizon has never maintained distinct and separate accounts necessary to prepare either stand-alone or carve-out financial statements. Due to such limitations, it is not practical to prepare full financial statements for the Group in accordance with the requirements of the Securities and Exchange

Commission’s (“SEC”) Regulation S-X. Accordingly, abbreviated financial statements were derived from the operating activities directly attributed to the Group’s operations from Verizon’s historical accounting records. The abbreviated financial statements reflect the assets acquired and liabilities assumed by the Acquirer, revenues and direct costs related to the Group’s operations, and exclude costs not directly involved in the revenue producing activity, such as corporate overhead, interest and income taxes. As the Group has historically been managed as part of the operations of Verizon and has not been operated on a stand-alone basis, it is not practical to prepare historical cash flow information regarding the Group’s operating, investing and financing cash flows. As such, statements of cash flows are not presented. The abbreviated financial statements have been prepared for the purpose of complying with the rules and regulations of the SEC for inclusion in Form 8-K/A of the Acquirer in connection with Verizon’s sale of the Group to the Acquirer. The Acquirer has obtained permission from the SEC to provide abbreviated financial statements in satisfaction of the requirements of Rule 3-05 of Regulation S-X.

The accompanying abbreviated financial statements include Statements of Assets Acquired and Liabilities Assumed, Statements of Net Revenues and Direct Expenses and accompanying notes (“Abbreviated Financial Statements”). The Abbreviated Financial Statements include either specifically identified balances related to the Group’s operations or the application of an allocation methodology that best reflects the Group’s share of the respective balances and activities. Revenues were determined based on the product level billing data for colocation and data center interconnect services, net of credits for such customers. Customer credits were either specifically identified or allocated based on the percentage of the Group’s revenue relative to total customer revenue within Verizon for which such credits were granted. Cost of services primarily includes compensation expense, other employee benefits expense, plant and facilities expense and lease costs. Selling, general and administrative expense primarily includes compensation expense, other employee benefits expense, property taxes and advertising and promotion expense. Compensation expense and other employee benefits expense were determined based on identification of the people that directly support the Group’s operations and for those employees that partially support the Group’s operations by applying an allocation methodology that best reflects the Group’s share of such costs. Lease costs were determined based on identification of the specific leases related to the Group. The remaining expenses, which include certain other employee related expenses, contractor services, bad debt expense, property taxes, and plant and facilities expenses were either specifically identified or an allocation methodology was applied that best reflects the Group’s share of the respective activities at Verizon. Depreciation expense was determined based on the specifically identified asset categories that support the Group’s operations at the Group’s sites. All intercompany accounts and transactions within the Group have been eliminated. The accompanying unaudited abbreviated financial statements have been prepared based upon Securities and Exchange Commission (SEC) rules that permit reduced disclosure for interim periods. For a more complete discussion of significant accounting policies and certain other information, you should refer to the audited abbreviated financial statements of the Group, which comprise the Statements of Assets Acquired and Liabilities Assumed as of December 31, 2016 and 2015, the related Statements of Net Revenues and Direct Expenses for each of the three years in the period ended December 31, 2016 included in Equinix's Current Report Form 8-K/A dated March 7, 2017. These financial statements reflect all adjustments that are necessary for a fair presentation of results of operations and financial condition for the interim periods shown including normal recurring accruals and other items. The results for the interim periods are not necessarily indicative of results for the full year.

The historical cost and accumulated depreciation of plant, property and equipment were determined based on specifically identifying asset categories that support the Group’s business at the Group’s sites except for certain assets that will not be acquired by the Acquirer. The remaining balance sheet accounts were either specifically identified or an allocation methodology was applied that best reflects the Group’s share of the respective balances at Verizon.

The Statements of Net Revenues and Direct Expenses exclude allocations of Verizon’s corporate overhead, including items such as human resources, legal services, information technology, accounting, compliance, finance, tax and treasury functions that are managed by Verizon. Additionally, foreign currency translation gains and losses, interest expense and income taxes have also been excluded from the Abbreviated Financial Statements.

Although management is unable to determine all of the actual costs, expenses and resultant operating results associated with the Group’s operations as a stand-alone, separate entity, the allocation described in these statements is considered reasonable in all material respects by management. The Abbreviated Financial Statements of the Group are not intended to be a complete presentation of the financial statements of the Group and are not necessarily indicative of the financial position and results of operations that would have been achieved if the Group had operated as a separate, stand-alone business.

The Group has evaluated subsequent events through August 15, 2017, the date these Abbreviated Financial Statements were available to be issued.

Subsequent to the issuance of the December 31, 2016 abbreviated financial statements, but prior to the closing, it was determined that Lease deposits were excluded assets. Accordingly, the Statement of Assets Acquired and Liabilities Assumed at March 31, 2017 does not include lease deposits.

The following matters, which were addressed or concluded in conjunction with the Closing, are not reflected in these abbreviated financial statements:

Use of Estimates

The preparation of these Abbreviated Financial Statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts. Such estimates include allowance for uncollectibles, depreciable lives, the assessment of recoverability of long-lived assets and asset retirement obligations. Actual results could differ from these estimates. The Abbreviated Financial Statements include allocations and estimates that are not necessarily indicative of the amounts that would have resulted if the Group had been operated as a stand-alone entity.

Plant, Property and Equipment and Depreciation

The Group records plant, property and equipment at cost. Plant, property and equipment are generally depreciated on a straight-line basis.

Leasehold improvements are amortized over the shorter of the estimated life of the improvement or the remaining term of the related lease, calculated from the time the asset was placed in service.

Impairment of Long-lived Assets

Plant, property and equipment are depreciated over their useful lives. These assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If any indicators of impairment are present, the Group tests for recoverability by comparing the carrying amount of the asset to the net undiscounted cash flows expected to be generated from the asset group. If those net undiscounted cash flows do not exceed the carrying amount (i.e., the asset is not recoverable), the Group performs the next step, which is to determine the fair value of the asset group and record an impairment, if any. No impairment charges were recorded within the three month period ended March 31, 2017 and 2016.

Asset Retirement Obligations

The Group recognizes a liability for the estimated fair value of asset retirement obligations, which are primarily associated with contractual obligations to remediate leased property on which the Group’s data center sites are located and decommissioning and removal costs for leasehold improvements. The fair value of the obligation is also capitalized as plant, property and equipment and then amortized over the estimated remaining useful life of the associated asset.

Revenue Recognition

Revenues principally consist of monthly recurring fees for colocation and data center interconnect services. Revenues from colocation and data center interconnect services are recognized ratably over the term of the contract. Installation fees and related direct costs are deferred and recognized ratably over the expected life of the customer installation which is estimated to be 36 to 48 months. Such deferred amounts are included in prepaid customer installations on the Statement of Assets Acquired and Liabilities Assumed.

The Group may sell colocation and data center interconnect services individually or in bundled arrangements. When more than one element, such as installation and colocation services, is contained in a single arrangement we allocate revenue to each deliverable using a relative selling price which is based on our standalone selling price for each product or service.    

Revenue is recognized when there is persuasive evidence of an arrangement, the fee is fixed or determinable, services have been rendered, and collection of the receivable is reasonably assured. We assess collectability based on a number of factors, including past transaction history with the customer and the credit-worthiness of the customer.

Revenue is reported net of credits of $6.5 million and $7.1 million for the three month periods ended March 31, 2017 and 2016 respectively.

Net revenues include transactions with various Verizon entities for rendering services related to colocation and data center services. These services were priced based on negotiated contract terms or actual costs incurred by the Group. These transactions do not necessarily represent arm’s length transactions and may not represent all revenues that would be present if the Group operated on a stand-alone basis.     

Foreign Currency Translation

The activities of the Group are accounted for in their respective local currencies. The assets and liabilities of these operations are translated to U.S. dollars at the period-end exchange rates. Revenue and direct cost accounts are translated to U.S. dollars using the average exchange rates prevailing during the period.  

Recently Issued Accounting Standards

In February 2016, the accounting standard update related to leases was issued. This standard update intends to increase transparency and improve comparability by requiring entities to recognize assets and liabilities on the balance sheet for all leases, with certain exceptions. In addition, through improved disclosure requirements, the standard update will enable users of financial statements to further understand the amount, timing, and uncertainty of cash flows arising from leases. This standard update is effective as of the first quarter of 2019; however, early adoption is permitted. The Group has not determined the impact that this standard update will have on the abbreviated financial statements.

In May 2014, the accounting standard update related to the recognition of revenue from contracts with customers was issued. This standard update along with related subsequently issued updates clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP. The standard update also amends current guidance for the recognition of costs to obtain and fulfill contracts with customers such that incremental costs of obtaining and direct costs of fulfilling contracts with customers will be deferred and amortized consistent with the transfer of the related good or service. The standard update intends to provide a more robust framework for addressing revenue issues; improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; and provide more useful information to users of financial statements through improved disclosure requirements. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented and the cumulative effect of applying the standard would be recognized at the earliest period shown, or the modified retrospective method, in which case the standard is applied only to the most current period presented and the cumulative effect of applying the standard would be recognized at the date of initial application. In August 2015, an accounting standard update was issued that delayed the effective date of this standard until the first quarter of 2018. The Group has not determined the impact that this standard update will have on the abbreviated financial statements.

4. Commitments and Contingencies

In the ordinary course of business, the Group is involved in various commercial litigation and regulatory proceedings in its jurisdictions. Where it is determined, in consultation with counsel based on litigation and settlement risks, that a loss is probable and estimable in a given matter, the Group establishes an accrual. During the three month periods ended March 31, 2017 and 2016, no accruals were required to be established. Any exposure related to certain claims described in the TA are defined as excluded liabilities and do not transfer to the Acquirer.

Exhibit 99.2

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

The following unaudited pro forma condensed combined financial statements of Equinix, Inc. (“Equinix” or the “Company”) are presented to illustrate the estimated effects of (i) the acquisition of the colocation business (the "Selected Sites of Verizon's Colocation and Data Center Interconnect Operations" or the “Selected Verizon Data Center Business”) consisting of 29 data center buildings, from Verizon Communications Inc. (the "Verizon Data Center Acquisition”) for a cash purchase price of approximately $3.6 billion that was completed on May 1, 2017; (ii) the issuance of one or more series of unsecured senior notes in the aggregate principal amount of $1.250 billion on March 22, 2017; (iii) the issuance of 6,069,444 shares of the Company’s common stock in a public offering on March 14, 2017; (iv) the borrowing of the €1.0 billion Term B-2 Loan, or approximately $1.06 billion, on January 6, 2017 (clauses (ii), (iii), and (iv) referred to as the “Financings”); and (v) the acquisition of Telecity Group Limited, formerly Telecity Group plc, ("TelecityGroup") that was completed on January 15, 2016 (the "TelecityGroup Acquisition"). The unaudited pro forma condensed combined statements of operations for the year ended December 31, 2016 and the nine months ended September 30, 2017 combine the historical consolidated statements of operations of the Company and the statements of net revenues and direct expenses of the Selected Sites of Verizon's Colocation and Data Center Interconnect Operations, giving effect to the Verizon Data Center Acquisition, the Financings and the TelecityGroup Acquisition as if they had been completed on January 1, 2016 . The pro forma financial information is based in part on certain assumptions regarding the foregoing transactions that we believe are factually supportable and are expected to have a continuing impact on our consolidated results. For purposes of the unaudited pro forma condensed combined statements of operations, certain reclassifications and adjustments have been made to the historical abbreviated financial statements of the Selected Sites of Verizon's Colocation and Data Center Interconnect Operations in order to conform to the Company’s statements of operations presentation. The unaudited pro forma condensed combined statements of operations should be read in conjunction with the accompanying notes to the unaudited pro forma condensed combined statements of operations. In addition, the unaudited pro forma condensed combined financial information was based on, and should be read in conjunction with, the following historical financial statements and accompanying notes:

period ended December 31, 2015, which are attached as Exhibit 99.2 to Equinix's Current Report on Form 8-K/A filed on March 7, 2017.

The unaudited pro forma condensed combined statements of operations have been prepared by Equinix, as the acquirer, using the acquisition method of accounting in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). The acquisition method of accounting is dependent upon certain valuation and other studies that have yet to progress to a stage where there is sufficient information for a definitive measurement. The assets and liabilities of the Selected Verizon Data Center Business have been measured based on various provisional estimates using assumptions that Equinix believes are reasonable. The provisional purchase price allocation for the Selected Verizon Data Center Business is subject to revision as a more detailed analysis is completed and additional information on the fair value of the Selected Verizon Data Center Business’ assets and liabilities becomes available. The final allocation of the purchase price, which will be based upon actual tangible and intangible assets acquired as well as liabilities assumed could differ materially from the unaudited pro forma condensed combined financial statements presented here. Any change in the fair value of the net assets of the Selected Verizon Data Center Business will change the amount of the purchase price allocable to goodwill. The pro forma adjustments are provisional and have been made solely for the purpose of providing unaudited pro forma condensed combined financial statements prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”).

The unaudited pro forma condensed combined statements of operations have been presented for information purposes only. The unaudited pro forma condensed combined statements of operations do not purport to represent the actual results of operations that Equinix and the Selected Verizon Data Center Business would have achieved had the Verizon Data Center Acquisition, the Financings and the TelecityGroup Acquisition occurred on the date indicated above, and is not intended to project the future results of operations that the combined company may achieve after the Verizon Data Center Acquisition. The unaudited pro forma condensed combined statements of operations do not reflect any potential cost savings that may be realized as a result of the Verizon Data Center Acquisition and also do not reflect any restructuring, acquisition or integration-related costs. The unaudited pro forma condensed combined statements of operations do not reflect revenue associated with service agreements entered into with Verizon on the date of acquisition for periods prior to the date of acquisition. Prior to the acquisition date, no historical transactions between Equinix and the Selected Verizon Data Center Business during the periods presented in the unaudited pro forma condensed combined statements of operations have been identified at this time.

The accompanying notes are an integral part of these unaudited pro forma condensed combined financial statements.

The accompanying notes are an integral part of these unaudited pro forma condensed combined financial statements.

NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

On May 1, 2017, the Company completed the acquisition of certain colocation business from Verizon Communications Inc.'s ("Verizon") consisting of 29 data center buildings located in the United States, Brazil and Colombia, for a cash purchase price of approximately $3.6 billion (the "Verizon Data Center Acquisition"). The Selected Verizon Data Center Business includes real property interests in 29 data center buildings across 15 metro areas located in the United States, Brazil and Colombia. The Company funded the Verizon Data Center Acquisition with proceeds of debt and equity financings, which closed in January and March 2017. The Verizon Data Center Acquisition constitutes a business under the accounting standard for business combinations and therefore was accounted for as a business combination using the acquisition method of accounting.

The colocation business at the selected data centers to be acquired includes services provided to Verizon under arrangements that would have terminated at the closing of the Verizon Data Center Acquisition. As the terms and conditions of these arrangements were not finalized before the Verizon Data Center Acquisition, the operating results from these arrangements are not included in the abbreviated financial statements of the Selected Sites of Verizon's Colocation and Data Center Interconnect Operations. Pursuant to the acquisition agreement, the Company formalized agreements to provide pre-existing space and services to Verizon at the acquired data centers. The Company included these arrangements in the provisional fair valuation of the intangible assets. For the nine months ended September 30, 2017, the Company recognized approximately $223.7 million of revenue attributable to the Verizon Data Center Acquisition, which included these arrangements.

As of September 30, 2017, the Company has not completed the detailed valuation analysis to derive the fair value of the following items including but not limited to, property, plant and equipment, intangible assets and deferred taxes. Therefore, the allocation of the purchase price to assets acquired and liabilities assumed is based on provisional estimates and is subject to continuing management analysis, with assistance from third party valuation advisers (see Note 3).

The unaudited pro forma condensed combined statements of operations for the year ended December 31, 2016 and nine months ended September 30, 2017 combine the results of operations of Equinix and the statements of net revenues and direct expenses of the Selected Sites of Verizon's Colocation and Data Center Interconnect Operations as if the Verizon Data Center Acquisition, the Financings (see Note 4), and the TelecityGroup Acquisition had been consummated on January 1, 2016. Certain statement of operations reclassifications have also been reflected in order to conform to the Company’s statement of operations presentation. Refer to Note 2 for a discussion of these reclassification adjustments.

The historical consolidated financial information has been adjusted in the accompanying unaudited pro forma condensed combined financial information to give effect to pro forma events that are (i) directly attributable to the Verizon Data Center Acquisition, the Financings and the TelecityGroup Acquisition that was completed on January 15, 2016, (ii) factually supportable, and (iii) with respect to the unaudited pro forma condensed combined statements of operations, expected to have a continuing impact on the consolidated results.

The acquisition method of accounting, based on Accounting Standards Codification Topic ("ASC") 805, "Business Combinations", uses the fair value concepts defined in ASC 820, “Fair Value Measurement” (“ASC 820”). Fair value is defined in ASC 820 as the “price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” This is an exit price concept for the valuation of an asset or liability. Market participants are assumed to be buyers or sellers in the most advantageous market for the asset or liability. Fair value measurement for an asset assumes the highest and best use by these market participants, and as a result, assets may be required to be recorded which are not intended to be used or sold and/or to value assets at a fair value measurement that do not reflect management’s intended use for those assets. Fair value measurements can be highly subjective and it is possible the application of reasonable judgment could develop different assumptions resulting in a range of alternative estimates using the same facts and circumstances.

ASC 805 requires, among other things, that assets acquired and liabilities assumed in a business combination be recognized at fair value as of the acquisition date. As of the date of this filing, the accompanying unaudited pro forma purchase price allocation is preliminary and is subject to further adjustments as additional information becomes available and as additional analyses are performed.

The following schedule summarizes the necessary material adjustments to conform the Selected Verizon Data Center Business' statement of net revenues and direct expenses for the year ended December 31, 2016 to the basis of presentation of Equinix's consolidated statement of operations for the year ended December 31, 2016 (in thousands):

(i) Reclassifies $71.7 million of depreciation expense to cost of services to conform to the Company's financial statement presentation.

(j) Reclassifies $16.3 million of selling, general, and administrative expense to sales and marketing expense and $24.5 million of selling, general, and administrative expense to general and administrative expense to conform to the Company's financial statement presentation.

The following schedule summarizes the necessary material adjustments to estimate the Selected Verizon Data Center Business' statement of net revenues and direct expenses for the three months ended March 31, 2017 through May 1, 2017, the date of acquisition, and to conform to the basis of presentation of Equinix's condensed consolidated statement of operations for the nine months ended September 30, 2017 (in thousands):

(k) Net revenues, cost of revenues and direct expenses for the month of April 2017 were estimated based on actual results recorded for May 2017. Actual results of operations of the Selected Verizon Data Center Business are included in the Company's results of operations beginning May 1, 2017.

(l) Reclassifies $23.0 million of depreciation expense to cost of services to conform to the Company's financial statement presentation.

(m) Reclassifies $5.9 million of selling, general, and administrative expense to sales and marketing expense and $8.8 million of selling, general, and administrative expense to general and administrative expense to conform to the Company's financial statement presentation.

Under the acquisition method of accounting, the total purchase price is allocated to the assets acquired and liabilities assumed measured at fair value on the date of acquisition. As of September 30, 2017, the Company has not completed the detailed valuation analysis to derive the fair value of the following items including but not limited to, property, plant and equipment, intangible assets and deferred taxes. Therefore, the allocation of the purchase price to assets acquired and liabilities assumed is based on provisional estimates and is subject to continuing management analysis, with assistance from third party valuation advisers. The preliminary purchase price allocation is as follows (in thousands):

A provisional estimate of $1.1 billion has been allocated to goodwill. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired. The provisional purchase price allocation for the Verizon Data Center Acquisition is subject to revision as more detailed analysis is completed and additional information on the fair values of the Selected Verizon Data Center Business' assets and liabilities becomes available. Any changes in the fair value of the net assets of the Selected Verizon Data Center Business will change the amount of the purchase price allocable to goodwill. The final allocation of the purchase price may differ materially from the unaudited pro forma condensed combined financial statements presented here.

Concurrently, and in connection with entering into the acquisition agreement with Verizon, Equinix entered into a commitment letter (the “Commitment Letter”), dated December 6, 2016, with JPMorgan Chase Bank, N.A., Bank of America, N.A. and Merrill Lynch, Pierce, Fenner & Smith Incorporated (the “Commitment Parties”), pursuant to which the Commitment Parties committed

to provide a senior unsecured bridge facility in aggregate principal amount of $2.0 billion for the purposes of funding (i) a portion of the cash consideration for the Verizon Data Center Acquisition and (ii) the fees and expenses incurred in connection with the Verizon Data Center Acquisition. Following the completion of the debt and equity financings associated with the Verizon Data Center Acquisition in March 2017, the Company terminated the Commitment Letter. The financing commitments of the Commitment Parties are subject to various conditions set forth in the Commitment Letter.

The unaudited pro forma condensed combined statements of operations consist of the permanent financings for the Verizon Data Center Acquisition:

The accompanying unaudited pro forma condensed combined financial statements have been prepared as if the transactions described above were completed on January 1, 2016 for statements of operations purposes.

The unaudited pro forma condensed combined statements of operations give effect to the following pro forma adjustments:

(a) Represents the following adjustments to revenues (in thousands):

The adjustment of $16.7 million to revenues for the year ended December 31, 2016 is for the purpose of presenting a full-year result of operations for TelecityGroup, which was acquired by Equinix on January 15, 2016. The revenue adjustment for Richardson Parkway removes revenues from the Selected Verizon Data Center Business' net revenues as this data center site was not acquired by the Company. The revenue adjustment related to deferred installation revenues reflects purchase accounting adjustment.

(b) Represents the following adjustments to cost of revenues (in thousands):

The depreciation adjustment is in connection with the fair value adjustment to the Selected Verizon Data Center Business' property, plant and equipment. The property, plant and equipment are depreciated based on an estimated weighted average useful life of 11.0 years. The adjustment of $12.0 million to cost of revenues is for the purpose of presenting a full-year result of operations for

TelecityGroup, which was acquired by Equinix on January 15, 2016. The cost of revenues adjustment for Richardson Parkway removes cost of revenues from the Selected Verizon Data Center Business' direct expenses as this data center site was not acquired by the Company.

(c) Represents the following adjustments to sales and marketing (in thousands):

The amortization adjustment is in connection with the fair value of the acquired intangible assets. Customer relationships are amortized based on an estimated useful life of 15 years.

(d) Represents the following adjustments to general and administrative (in thousands):

(e) Reflects the elimination of non-recurring transaction costs of $7.0 million and $42.5 million incurred during the year ended December 31, 2016 that are directly related to the Verizon Data Center Acquisition and the TelecityGroup Acquisition, respectively, and non-recurring transaction costs of $27.6 million incurred during the nine months ended September 30, 2017 that are directly related to the Verizon Data Center Acquisition.

(f) Reflects the additional interest expense associated with the senior notes offering and Term B-2 Loan, the reversal of commitment fees relating to the bridge loan and the interest expense adjustments relating to capital lease and financing obligations (in thousands):

(g) Reflects an income tax impact of pro forma adjustments of $4.6 million and $1.8 million for the year ended December 31, 2016 and for the nine months ended September 30, 2017, respectively. The Company assumed a blended income tax rate of 32% and 12% for the year ended December 31, 2016 and for the nine months ended September 30, 2017, respectively. The decrease in the effective income tax rate from the year ended December 31, 2016 to the nine months ended September 30, 2017 is primarily due to the realization of unrecognized tax benefits in the current period related to the Company's tax positions as a result of the expiration of the statute of limitations. The effective tax rate of the combined company could be significantly different depending upon post-acquisition activities of the combined company.

(h) Reflects adjustment to the weighted-average shares outstanding for purposes of calculating basic and diluted earnings per share. Reflects the impact from the issuance of 6.1 million shares of common stock in connection with the Financings (see Note 4). Only common shares issued which are directly attributable to the Financings are included in the calculation of basic and diluted pro forma earnings per share.