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x
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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77-0487526
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(State of incorporation)
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(IRS Employer Identification No.)
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Title of each class
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Name of each exchange on which registered
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Common Stock, $0.001
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The NASDAQ Stock Market LLC
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Large accelerated filer
x
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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Emerging growth company
¨
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Item
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Page No.
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1.
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1A.
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1B.
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3.
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5.
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6.
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7.
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7A.
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8.
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9.
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9A.
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9B.
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10.
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11.
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12.
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13.
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14.
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ITEM 1.
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BUSINESS
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•
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Digital business
transformation is becoming a global phenomenon.
According to IDC, by 2021 at least 50% of global GDP will be digitized, and growth in every industry will be driven by digitally enhanced offerings, operations and relationships. Interconnection becomes a key building block for digital business along that journey because real-time interactions between people, things, locations, clouds and data are critical in a digital age.
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•
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Urbanization is increasing in the majority of metros worldwide.
Today, about 55% of the world's population lives in urban areas, and that will grow to 68% by 2050, according to the United Nations. With so many people so close together, digital services must be increasingly concentrated and close to users, so companies can deliver the connectivity their users expect. Interconnection brings applications, data, content and networking into proximity in these densely populated areas. It allows companies to deliver on their service promises, even as demand keeps growing.
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•
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Cybersecurity has increased in frequency, scope and complexity in our more closely connected world.
In fact, a large-scale cybersecurity breach is one of the most serious risks facing companies today. Ernst & Young projects the global cost of cybersecurity breaches will reach $6.0 trillion by 2021. Companies need to strengthen their defenses, even as they increase their vulnerability by distributing their data across a variety of sources and users. To do that, businesses need their security controls to be distributed as well, leveraging interconnection out at the edge where most traffic exchange is happening. The direct, private nature of interconnection also increases data protection and lowers the risk of being compromised.
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•
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Data Compliance has become a mandate among businesses around the world.
The digital economy may be global, but more countries are regulating the data at the heart of the digital economy and prescribing enhanced rules around personal data protections (e.g., GDPR). But remaining compliant is about more than following the rules. In a Thompson Reuters survey, 69% of respondents said successful compliance efforts can drive up business efficiency and effectiveness by enabling greater focus on value-added activities. The need to address compliance drives interconnection because it enables companies to link their data storage, analytics and clouds in the same business region. That data can stay proximate, and local if required by regulations, but still be accessed globally to meet business requirements.
|
•
|
Business Ecosystems
are becoming the life-blood of digital business.
Gartner predicts that by 2021, the number of organizations using a mix of intermediaries will more than double, and that active engagement by these organizations with industries in ecosystems outside their native industry will nearly triple. The reason is that digital trade flows are creating global business and data processes that involve an increasing variety of customers, partners and employees. Interconnection securely and efficiently connects all the players in all these business ecosystems, as those ecosystems expand in depth and number
.
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•
|
The need for businesses and organizations to create a "digital edge" - where commerce, population centers and digital ecosystems meet. A more geographically distributed IT infrastructure is needed to support the digital operations that now cover every global region and every aspect of today's global businesses.
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•
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The growth of "proximity communities" that rely on immediate physical colocation and interconnection with strategic partners and customers. Examples include financial exchange ecosystems for electronic trading and settlement, media and content provider ecosystems, and ecosystems for real-time bidding and fulfillment of internet advertising.
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•
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The Internet of Things (IoT), big data infrastructures, artificial intelligence (AI) and the emergence of 5G high-speed mobile and wireless networks, which are creating unprecedented quantities of data that fuel digital business.
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•
|
The accelerating adoption and ubiquitous nature of cloud computing technology services, in particular hybrid/multiclouds, along with enterprise cloud service offerings such as Software-as-a-Service (SaaS), Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) and security and disaster recovery services.
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•
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The continuing growth of consumer internet traffic from new bandwidth-intensive services (e.g., video, voice over IP, social media, mobile data, gaming, data-rich media), Ethernet and wireless services, as well as new devices (e.g., wearables, home assistances, AR/VR headsets). These devices and services also increase the requirements for anytime, anywhere and any device interconnection out at the edge to improve the performance, security, scalability and reliability of interconnecting people, locations, clouds, data and things.
|
•
|
Significant increases in power and cooling requirements for today's data center equipment. New generations of servers and storage devices continue to concentrate processing capability and the associated power consumption and cooling load into smaller footprints; and many legacy-built data centers are unable to accommodate these new power and cooling demands. The high capital costs associated with building and maintaining "in-sourced" data centers creates an opportunity for capital savings by leveraging an outsourced colocation model.
|
•
|
Reach Everywhere
|
•
|
Interconnect Everyone
|
•
|
Integrate Everything
|
•
|
Interconnection leadership:
The global digital economy's demands for fast, secure business collaboration creates a need for interconnection across Equinix's global platform. As this digital journey intensifies, businesses are creating new commerce and collaboration models to compete. Success in this fast-moving world can be facilitated by a single interconnection platform for digital business that is connected physically and virtually around the world. Companies that can deploy an interconnected digital infrastructure can connect broadly and securely scale the integration of their business at the digital edge.
|
•
|
Cloud access and expertise:
Equinix is home to more than
2,900
cloud and IT service providers and a variety of secure routes to the efficiencies, performance and cost-savings of the cloud. The Equinix Cloud Exchange Fabric™ ("ECX Fabric") offers on-demand access to multiple cloud providers from multiple networks, enabling customers to design scalable cloud services tailored to their needs at a given moment. In 2018, Equinix undertook the next phase in the evolution of Platform Equinix to achieve the direct physical and virtual connection of its IBX data centers around the world. This advance enables our customers to connect on demand to any other customer from any Equinix location, equipping digital businesses to scale their operations rapidly across the largest markets globally. On the ECX Fabric, customers do not have to be in the same IBX data center as their cloud provider(s); they can remotely access cloud services as if they were physically close to the provider. Equinix Professional Services for Cloud experts enable our customers to successfully deploy a mix of private, public, hybrid and multicloud environments over a global interconnected cloud fabric to best fit their business and customer requirements.
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•
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Comprehensive global solution:
With
200
IBX data centers in
52
markets in the Americas, EMEA and Asia-Pacific, Equinix offers a consistent, interconnected global solution.
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•
|
Premium data centers and expertise:
Equinix IBX data centers feature advanced design, security, power and cooling, and data center infrastructure management (DCIM) elements to provide customers with industry-leading visibility and reliability, including average uptime of 99.9999% globally in 2018. Equinix Professional Services offers practical guidance and proven solutions to help customers optimize their data center architecture.
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•
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Dynamic interconnected business ecosystems:
Equinix's network- and cloud-neutral model has enabled us to attract a critical mass of networks and cloud and IT services providers, and that, in turn, attracts other businesses seeking to interconnect within a single location or across metros. This local ecosystem model leverages lower networking costs and optimizes the performance of data exchange. At the same time, the ECX Fabric enables private access to remote business ecosystems in regionally distributed IBX data centers to further reduce long-distance networking costs and deliver high performance. As Equinix grows and attracts an ever-more diversified base of customers, the value of Equinix's IBX interconnected data center offering increases.
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•
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Improved economics:
Customers seeking to outsource their data center operations rather than build their own capital-intensive data centers enjoy significant capital cost savings. Customers also benefit from improved economics because of the broad access to networks and clouds that Equinix provides. Rather than purchasing often costly local loops from multiple transit providers, customers can connect directly to more than
1,800
networks and
2,900
cloud and IT service providers inside Equinix's IBX data centers.
|
•
|
Leading interconnection insight:
After more than 20 years in the industry, Equinix has a specialized staff of industry experts, professional services specialists and solutions architects who helped build and shape the interconnection infrastructure of the internet, and who are now positioned to do the same for digital businesses. This specialization and industry knowledge base offers customers unique expertise and the competitive advantage needed to compete in the global digital economy.
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•
|
Lasting sustainability:
Energy efficiency and environmental sustainability are a part of everything we do, whether we're building new data centers or upgrading existing facilities. We have committed to design, build and operate our data centers with high energy efficiency standards, and we have a long-term goal of using 100% clean and renewable energy across our global platform.
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Cloud and IT Services
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Content Providers
|
Enterprise
|
FinServ/Insurance
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Network and Mobile Services
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Amazon Web Services
Box Inc.
Cisco Systems Inc.
Google Cloud Platform
Datapipe
IBM Cloud
Microsoft Azure
NetApp
Oracle Cloud Infrastructure
Salesforce.com
SAP HANA Enterprise
Cloud and SAP Cloud
Platform
VMware Cloud
Workday, Inc.
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Criteo
DirectTV
Discovery, Inc.
Index Exchange
Movile
Netflix
Priceline.com
Thomson Reuters
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Anheuser-Busch
Aetna BMC Software Ericsson CDM Smith Colony Brands Deloitte DocuSign Ford Motors Ingram Micro Mazda Motor Corp. Smithfield Foods Sysco Foods Weyerhaueser Wing On |
Allianz Technology
of America Aon Bloomberg Chicago Board Options Exchange Lincoln Financial NASDAQ Options Exchange PayPal The Society of Lloyd's TIAA |
AT&T
British Telecom
China Mobile
Lycamobile
NTT Communications Siemens Mobility Services
T-Systems
TATA Communications Verizon
Vodafone
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•
|
Large enterprises with significant IT expertise and requirements
|
•
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Small and medium businesses looking to outsource data center requirements
|
•
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Cloud and network service providers
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•
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Electronic trading, digital payments and financial services companies
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•
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Internet application providers
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•
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Major internet content, entertainment and social networking providers
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•
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Shared, dedicated and managed hosting providers
|
•
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Mobile and network service providers
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•
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Content delivery networks
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•
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A Meet Me Room (MMR) is typically a smaller space, generally 5,000 square feet or less, located in a major carrier hotel and often found in a wholesale data center facility.
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•
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A carrier-neutral data center is generally larger than an MMR and may be a stand-alone building separate from existing carrier hotels.
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•
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Application hosting by organizations of any size, including large enterprises
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•
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Hosted or managed messaging, including Microsoft Exchange and other complex messaging applications
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•
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Complex or highly scalable web hosting or e-commerce websites
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•
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Managed storage solutions (including large drive arrays or backup robots)
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•
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Server disaster recovery and business continuity, including clustering and global server load balancing
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•
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Database servers, applications and services
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ITEM 1A.
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RISK FACTORS
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•
|
the possible disruption of our ongoing business and diversion of management's attention by acquisition, transition and integration activities, particularly when multiple acquisitions and integrations are occurring at the same time;
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•
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our potential inability to successfully pursue or realize some or all of the anticipated revenue opportunities associated with an acquisition or investment;
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•
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the possibility that we may not be able to successfully integrate acquired businesses, or businesses in which we invest, or achieve anticipated operating efficiencies or cost savings;
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•
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the possibility that announced acquisitions may not be completed, due to failure to satisfy the conditions to closing as a result of:
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◦
|
an injunction, law or order that makes unlawful the consummation of the acquisition;
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◦
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inaccuracy or breach of the representations and warranties of, or the non-compliance with covenants by, either party;
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◦
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the nonreceipt of closing documents; or
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◦
|
for other reasons;
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•
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the possibility that there could be a delay in the completion of an acquisition, which could, among other things, result in additional transaction costs, loss of revenue or other negative effects resulting from uncertainty about completion of the respective acquisition;
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•
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the dilution of our existing stockholders as a result of our issuing stock as consideration in a transaction or selling stock in order to fund the transaction;
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•
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the possibility of customer dissatisfaction if we are unable to achieve levels of quality and stability on par with past practices;
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•
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the possibility that we will be unable to retain relationships with key customers, landlords and/or suppliers of the acquired businesses, some of which may terminate their contracts with the acquired business as a result of the acquisition or which may attempt to negotiate changes in their current or future business relationships with us;
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•
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the possibility that we could lose key employees from the acquired businesses before integrating them;
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•
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the possibility that we may be unable to integrate or migrate IT systems, which could create a risk of errors or performance problems and could affect our ability to meet customer service level obligations;
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•
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the potential deterioration in our ability to access credit markets due to increased leverage;
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•
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the possibility that our customers may not accept either the existing equipment infrastructure or the "look-and-feel" of a new or different IBX data center;
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•
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the possibility that additional capital expenditures may be required or that transaction expenses associated with acquisitions may be higher than anticipated;
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•
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the possibility that required financing to fund an acquisition may not be available on acceptable terms or at all;
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•
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the possibility that we may be unable to obtain required approvals from governmental authorities under antitrust and competition laws on a timely basis or at all, which could, among other things, delay or prevent us from completing an acquisition, limit our ability to realize the expected financial or strategic benefits of an acquisition or have other adverse effects on our current business and operations;
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•
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the possible loss or reduction in value of acquired businesses;
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•
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the possibility that future acquisitions may present new complexities in deal structure, related complex accounting and coordination with new partners, particularly in light of our desire to maintain our qualification for taxation as a REIT;
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•
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the possibility that we may not be able to prepare and issue our financial statements and other public filings in a timely and accurate manner, and/or maintain an effective control environment, due to the strain on the finance organization when multiple acquisitions and integrations are occurring at the same time;
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•
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the possibility that future acquisitions may trigger property tax reassessments resulting in a substantial increase to our property taxes beyond that which we anticipated;
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•
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the possibility that future acquisitions may be in geographies and regulatory environments to which we are unaccustomed and we may become subject to complex requirements and risks with which we have limited experience;
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•
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the possibility that carriers may find it cost-prohibitive or impractical to bring fiber and networks into a new IBX data center;
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•
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the possibility of litigation or other claims in connection with, or as a result of, an acquisition, including claims from terminated employees, customers, former stockholders or other third parties;
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•
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the possibility that asset divestments may be required in order to obtain regulatory clearance for a transaction;
|
•
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the possibility of pre-existing undisclosed liabilities, including, but not limited to, lease or landlord related liability, environmental liability or asbestos liability, for which insurance coverage may be insufficient or unavailable, or other issues not discovered in the diligence process; and
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•
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the possibility that we receive limited or incorrect information about the acquired business in the diligence process. For example, we sometimes do not receive all of the customer contracts associated with our acquisitions in the diligence process, which affects our visibility into customer termination rights and could expose us to additional liabilities.
|
•
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require us to dedicate a substantial portion of our cash flow from operations to make interest and principal payments on our debt and in respect of other off-balance sheet arrangements, reducing the availability of our cash flow to fund future capital expenditures, working capital, execution of our expansion strategy and other general corporate requirements;
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•
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increase the likelihood of negative outlook from our credit rating agencies;
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•
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make it more difficult for us to satisfy our obligations under our various debt instruments;
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•
|
increase our cost of borrowing and even limit our ability to access additional debt to fund future growth;
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•
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increase our vulnerability to general adverse economic and industry conditions and adverse changes in governmental regulations;
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•
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limit our flexibility in planning for, or reacting to, changes in our business and industry, which may place us at a competitive disadvantage compared with our competitors;
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•
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limit our operating flexibility through covenants with which we must comply, such as limiting our ability to repurchase shares of our common stock;
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•
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limit our ability to borrow additional funds, even when necessary to maintain adequate liquidity, which would also limit our ability to further expand our business; and
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•
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make us more vulnerable to increases in interest rates because of the variable interest rates on some of our borrowings to the extent we have not entirely hedged such variable rate debt.
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•
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the costs of customizing IBX data centers for foreign countries;
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•
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protectionist laws and business practices favoring local competition;
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•
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greater difficulty or delay in accounts receivable collection;
|
•
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difficulties in staffing and managing foreign operations, including negotiating with foreign labor unions or workers' councils;
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•
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difficulties in managing across cultures and in foreign languages;
|
•
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political and economic instability;
|
•
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fluctuations in currency exchange rates;
|
•
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difficulties in repatriating funds from certain countries;
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•
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our ability to obtain, transfer or maintain licenses required by governmental entities with respect to our business;
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•
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unexpected changes in regulatory, tax and political environments such as the United Kingdom's pending withdrawal from the European Union ("Brexit");
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•
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our ability to secure and maintain the necessary physical and telecommunications infrastructure;
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•
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compliance with anti-bribery and corruption laws;
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•
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compliance with economic and trade sanctions enforced by the Office of Foreign Assets Control of the U.S. Department of Treasury; and
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•
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compliance with evolving governmental regulation with which we have little experience.
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•
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our operating results or forecasts;
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•
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new issuances of equity, debt or convertible debt by us, including issuances through our ATM Program;
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•
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increases in market interest rates and changes in other general market and economic conditions, including inflationary concerns;
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•
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changes to our capital allocation, tax planning or business strategy;
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•
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our qualification for taxation as a REIT and our declaration of distributions to our stockholders;
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•
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changes in U.S. or foreign tax laws;
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•
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changes in management or key personnel;
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•
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developments in our relationships with customers;
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•
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announcements by our customers or competitors;
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•
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changes in regulatory policy or interpretation;
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•
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governmental investigations;
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•
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changes in the ratings of our debt or stock by rating agencies or securities analysts;
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•
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our purchase or development of real estate and/or additional IBX data centers;
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•
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our acquisitions of complementary businesses; or
|
•
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the operational performance of our IBX data centers.
|
•
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human error;
|
•
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equipment failure;
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•
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physical, electronic and cyber security breaches;
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•
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fire, earthquake, hurricane, flood, tornado and other natural disasters;
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•
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extreme temperatures;
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•
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water damage;
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•
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fiber cuts;
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•
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power loss;
|
•
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terrorist acts;
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•
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sabotage and vandalism; and
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•
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failure of business partners who provide our resale products.
|
•
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construction delays;
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•
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lack of availability and delays for data center equipment, including items such as generators and switchgear;
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•
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unexpected budget changes;
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•
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increased prices for building supplies, raw materials and data center equipment;
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•
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labor availability, labor disputes and work stoppages with contractors, subcontractors and other third parties;
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•
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unanticipated environmental issues and geological problems; and
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•
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delays related to permitting from public agencies and utility companies.
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•
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fluctuations of foreign currencies in the markets in which we operate;
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•
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the timing and magnitude of depreciation and interest expense or other expenses related to the acquisition, purchase or construction of additional IBX data centers or the upgrade of existing IBX data centers;
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•
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demand for space, power and solutions at our IBX data centers;
|
•
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changes in general economic conditions, such as an economic downturn, or specific market conditions in the telecommunications and internet industries, both of which may have an impact on our customer base;
|
•
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charges to earnings resulting from past acquisitions due to, among other things, impairment of goodwill or intangible assets, reduction in the useful lives of intangible assets acquired, identification of additional assumed contingent liabilities or revised estimates to restructure an acquired company's operations;
|
•
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the duration of the sales cycle for our offerings and our ability to ramp our newly-hired sales persons to full productivity within the time period we have forecasted;
|
•
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restructuring charges or reversals of restructuring charges, which may be necessary due to revised sublease assumptions, changes in strategy or otherwise;
|
•
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acquisitions or dispositions we may make;
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•
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the financial condition and credit risk of our customers;
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•
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the provision of customer discounts and credits;
|
•
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the mix of current and proposed products and offerings and the gross margins associated with our products and offerings;
|
•
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the timing required for new and future IBX data centers to open or become fully utilized;
|
•
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competition in the markets in which we operate;
|
•
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conditions related to international operations;
|
•
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increasing repair and maintenance expenses in connection with aging IBX data centers;
|
•
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lack of available capacity in our existing IBX data centers to generate new revenue or delays in opening new or acquired IBX data centers that delay our ability to generate new revenue in markets which have otherwise reached capacity;
|
•
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changes in rent expense as we amend our IBX data center leases in connection with extending their lease terms when their initial lease term expiration dates approach or changes in shared operating costs in connection with our leases, which are commonly referred to as common area maintenance expenses;
|
•
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the timing and magnitude of other operating expenses, including taxes, expenses related to the expansion of sales, marketing, operations and acquisitions, if any, of complementary businesses and assets;
|
•
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the cost and availability of adequate public utilities, including power;
|
•
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changes in employee stock-based compensation;
|
•
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overall inflation;
|
•
|
increasing interest expense due to any increases in interest rates and/or potential additional debt financings;
|
•
|
changes in our tax planning strategies or failure to realize anticipated benefits from such strategies;
|
•
|
changes in income tax benefit or expense; and
|
•
|
changes in or new GAAP as periodically released by the Financial Accounting Standards Board ("FASB").
|
•
|
ownership limitations and transfer restrictions relating to our stock that are intended to facilitate our compliance with certain REIT rules relating to share ownership;
|
•
|
authorization for the issuance of "blank check" preferred stock;
|
•
|
the prohibition of cumulative voting in the election of directors;
|
•
|
limits on the persons who may call special meetings of stockholders;
|
•
|
limits on stockholder action by written consent; and
|
•
|
advance notice requirements for nominations to the Board of Directors or for proposing matters that can be acted on by stockholders at stockholder meetings.
|
•
|
we will not be allowed a deduction for distributions to stockholders in computing our taxable income;
|
•
|
we will be subject to federal and state income tax on our taxable income at regular corporate income tax rates; and
|
•
|
we would not be eligible to elect REIT status again until the fifth taxable year that begins after the first year for which we failed to qualify for taxation as a REIT.
|
ITEM 1B.
|
UNRESOLVED STAFF COMMENTS
|
ITEM 2.
|
PROPERTIES
|
|
Leased
|
Owned
(1)
|
Americas
|
Rio de Janeiro & Sao Paulo, Brazil;
Toronto, Canada; Atlanta, Georgia; Boston, Massachusetts; Chicago, Illinois; Dallas, Texas; Washington D.C. & Ashburn, Virginia; Denver, Colorado; Miami, Florida; New York, New York; Philadelphia, Pennsylvania; Seattle, Washington; Silicon Valley & Los Angeles, California |
Chicago, Illinois;
Washington D.C., Ashburn & Culpeper, Virginia; Silicon Valley & Los Angeles, California; Rio de Janeiro & São Paulo, Brazil; Atlanta, Georgia; Boston, Massachusetts; Dallas & Houston, Texas; Denver, Colorado; Miami, Florida; New York, New York; Seattle, Washington;
Bogotá, Columbia
|
EMEA
|
Paris, France;
Frankfurt & Munich, Germany; Amsterdam & East Netherlands, the Netherlands; Geneva & Zurich, Switzerland; Dubai & Abu Dhabi, U.A.E.; London & Manchester, United Kingdom; Helsinki, Finland; Dublin, Ireland; Milan, Italy; Stockholm, Sweden; Istanbul, Turkey; Warsaw, Poland; Barcelona, Madrid & Seville, Spain |
Paris, France;
Frankfurt & Dusseldorf, Germany; London, United Kingdom; Amsterdam, the Netherlands;
Dublin, Ireland;
Sofia, Bulgaria; Istanbul, Turkey; Milan, Italy; Helsinki, Finland; Lisbon, Portugal;
Stockholm, Sweden
|
Asia-Pacific
|
Hong Kong & Shanghai, China;
Singapore; Sydney, Australia; Tokyo & Osaka, Japan |
Shanghai, China;
Tokyo, Japan; Adelaide, Brisbane, Canberra, Melbourne, Perth & Sydney, Australia |
|
(1)
|
Owned sites include IBX data centers subject to long-term ground leases.
|
|
# of IBXs
|
|
Total Cabinet Capacity
(2)
|
|
Cabinets Billed
|
|
Cabinet Utilization %
(3)
|
|
MRR per Cabinet
(4)
|
||||||
Americas
|
87
|
|
|
105,900
|
|
|
81,800
|
|
|
77
|
%
|
|
$
|
2,389
|
|
EMEA
|
73
|
|
|
113,500
|
|
|
94,700
|
|
|
83
|
%
|
|
1,352
|
|
|
Asia-Pacific
|
40
|
|
|
57,300
|
|
|
47,500
|
|
|
83
|
%
|
|
1,762
|
|
|
Total
|
200
|
|
|
276,700
|
|
|
224,000
|
|
|
|
|
|
|
(1)
|
Non-financial metrics presented on the table above include Zenium data center, Itconic, and Metronode acquisitions.
|
(2)
|
Cabinets represent a specific amount of space within an IBX data center. Customers can combine and use multiple adjacent cabinets within an IBX data center, depending on their space requirements.
|
(3)
|
The cabinet utilization rate represents the percentage of cabinet space billing versus total cabinet capacity, taking into consideration power limitations.
|
(4)
|
MRR per cabinet represents average monthly recurring revenue recognized divided by the average number of cabinets billing during the fourth quarter of the year. Brazil, Colombia, Infomart Dallas non-IBX tenant income and Bit-isle MIS are excluded from MRR per cabinet calculations.
|
Property
|
|
Property Location
|
|
Target Open Date
|
|
Sellable Cabinets
|
|
Total Capex
(in Millions)
(1)
|
|||
Americas:
|
|
|
|
|
|
|
|
|
|||
DA6 phase III
|
|
Dallas
|
|
Q1 2019
|
|
425
|
|
|
$
|
23
|
|
CH3 phase V
|
|
Chicago
|
|
Q2 2019
|
|
450
|
|
|
15
|
|
|
SE4 phase II
|
|
Seattle
|
|
Q2 2019
|
|
575
|
|
|
30
|
|
|
NY5 phase III
|
|
New York
|
|
Q3 2019
|
|
1,100
|
|
|
33
|
|
|
SP4 phase III
|
|
São Paulo
|
|
Q2 2020
|
|
1,025
|
|
|
59
|
|
|
DA11 phase I
|
|
Dallas
|
|
Q2 2020
|
|
1,975
|
|
|
138
|
|
|
|
|
|
|
|
|
5,550
|
|
|
298
|
|
|
EMEA:
|
|
|
|
|
|
|
|
|
|||
FR2 phase VI-A
|
|
Frankfurt
|
|
Q1 2019
|
|
1,250
|
|
|
103
|
|
|
LD4 phase II
|
|
London
|
|
Q1 2019
|
|
1,075
|
|
|
39
|
|
|
LD9 phase V
|
|
London
|
|
Q1 2019
|
|
1,550
|
|
|
72
|
|
|
PA8 phase I
(2)
|
|
Paris
|
|
Q1 2019
|
|
875
|
|
|
73
|
|
|
SO2 phase I
|
|
Sofia
|
|
Q1 2019
|
|
350
|
|
|
19
|
|
|
ZH5 phase III
|
|
Zurich
|
|
Q1 2019
|
|
525
|
|
|
51
|
|
|
FR5 phase IV
|
|
Frankfurt
|
|
Q2 2019
|
|
350
|
|
|
25
|
|
|
HE7 phase I
|
|
Helsinki
|
|
Q2 2019
|
|
250
|
|
|
20
|
|
|
LD7 phase I
|
|
London
|
|
Q2 2019
|
|
1,775
|
|
|
120
|
|
|
MD2 phase II
|
|
Madrid
|
|
Q2 2019
|
|
300
|
|
|
15
|
|
|
WA3 phase I
|
|
Warsaw
|
|
Q2 2019
|
|
475
|
|
|
34
|
|
|
SK2 phase VI
|
|
Stockholm
|
|
Q2 2019
|
|
540
|
|
|
35
|
|
|
FR2 phase VI-B
|
|
Frankfurt
|
|
Q3 2019
|
|
2,200
|
|
|
67
|
|
|
LD9 phase VI
|
|
London
|
|
Q3 2019
|
|
900
|
|
|
48
|
|
|
LD10 phase III
|
|
London
|
|
Q3 2019
|
|
1,375
|
|
|
45
|
|
|
ZH5 phase IV
|
|
Zurich
|
|
Q3 2019
|
|
475
|
|
|
25
|
|
|
HH1 phase I
|
|
Hamburg
|
|
Q4 2019
|
|
375
|
|
|
27
|
|
|
MC1 phase I
|
|
Muscat
|
|
Q4 2019
|
|
250
|
|
|
22
|
|
|
PA8 phase II
(2)
|
|
Paris
|
|
Q4 2019
|
|
1,300
|
|
|
54
|
|
|
|
|
|
|
|
|
16,190
|
|
|
894
|
|
|
Asia-Pacific:
|
|
|
|
|
|
|
|
|
|||
SH6 phase I
|
|
Shanghai
|
|
Q1 2019
|
|
400
|
|
|
31
|
|
|
TY11 phase I
|
|
Tokyo
|
|
Q2 2019
|
|
950
|
|
|
70
|
|
|
HK2 phase V
|
|
Hong Kong
|
|
Q2 2019
|
|
1,000
|
|
|
43
|
|
|
OS1 phase V
|
|
Osaka
|
|
Q2 2019
|
|
475
|
|
|
15
|
|
|
PE2 phase II
|
|
Perth
|
|
Q2 2019
|
|
225
|
|
|
11
|
|
|
HK4 phase II
|
|
Hong Kong
|
|
Q3 2019
|
|
500
|
|
|
34
|
|
|
ME2 phase I
|
|
Melbourne
|
|
Q3 2019
|
|
1,000
|
|
|
84
|
|
|
SL1 phase I
|
|
Seoul
|
|
Q3 2019
|
|
550
|
|
|
5
|
|
|
SY5 phase I
|
|
Sydney
|
|
Q3 2019
|
|
1,825
|
|
|
160
|
|
|
SG4 phase I
|
|
Singapore
|
|
Q4 2019
|
|
1,400
|
|
|
85
|
|
|
HK1 phase XII
|
|
Hong Kong
|
|
Q1 2020
|
|
250
|
|
|
13
|
|
|
TY12 phase I
(2)
|
|
Tokyo
|
|
Q4 2020
|
|
950
|
|
|
147
|
|
|
|
|
|
|
|
|
9,525
|
|
|
698
|
|
|
Total
|
|
|
|
|
|
31,265
|
|
|
$
|
1,890
|
|
|
(1)
|
Capital expenditures are approximate and may change based on final construction details.
|
(2)
|
Dedicated hyperscale data centers
|
ITEM 3.
|
LEGAL PROCEEDINGS
|
ITEM 4.
|
MINE SAFETY DISCLOSURE
|
ITEM 5.
|
MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
ITEM 6.
|
SELECTED FINANCIAL DATA
|
|
Years Ended December 31,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
|
(dollars in thousands, except per share data)
|
||||||||||||||||||
Revenues
(1)
|
$
|
5,071,654
|
|
|
$
|
4,368,428
|
|
|
$
|
3,611,989
|
|
|
$
|
2,725,867
|
|
|
$
|
2,443,776
|
|
Costs and operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of revenues
|
2,605,475
|
|
|
2,193,149
|
|
|
1,820,870
|
|
|
1,291,506
|
|
|
1,197,885
|
|
|||||
Sales and marketing
(1)
|
633,702
|
|
|
581,724
|
|
|
438,742
|
|
|
332,012
|
|
|
296,103
|
|
|||||
General and administrative
|
826,694
|
|
|
745,906
|
|
|
694,561
|
|
|
493,284
|
|
|
438,016
|
|
|||||
Acquisition costs
|
34,413
|
|
|
38,635
|
|
|
64,195
|
|
|
41,723
|
|
|
2,506
|
|
|||||
Impairment charges
|
—
|
|
|
—
|
|
|
7,698
|
|
|
—
|
|
|
—
|
|
|||||
Gain on asset sales
|
(6,013
|
)
|
|
—
|
|
|
(32,816
|
)
|
|
—
|
|
|
—
|
|
|||||
Total costs and operating expenses
|
4,094,271
|
|
|
3,559,414
|
|
|
2,993,250
|
|
|
2,158,525
|
|
|
1,934,510
|
|
|||||
Income from operations
|
977,383
|
|
|
809,014
|
|
|
618,739
|
|
|
567,342
|
|
|
509,266
|
|
|||||
Interest income
|
14,482
|
|
|
13,075
|
|
|
3,476
|
|
|
3,581
|
|
|
2,891
|
|
|||||
Interest expense
|
(521,494
|
)
|
|
(478,698
|
)
|
|
(392,156
|
)
|
|
(299,055
|
)
|
|
(270,553
|
)
|
|||||
Other income (expense)
|
14,044
|
|
|
9,213
|
|
|
(57,924
|
)
|
|
(60,581
|
)
|
|
119
|
|
|||||
Loss on debt extinguishment
|
(51,377
|
)
|
|
(65,772
|
)
|
|
(12,276
|
)
|
|
(289
|
)
|
|
(156,990
|
)
|
|||||
Income from continuing operations before income taxes
|
433,038
|
|
|
286,832
|
|
|
159,859
|
|
|
210,998
|
|
|
84,733
|
|
|||||
Income tax expense
(2)
|
(67,679
|
)
|
|
(53,850
|
)
|
|
(45,451
|
)
|
|
(23,224
|
)
|
|
(345,459
|
)
|
|||||
Net income (loss) from continuing operations
|
365,359
|
|
|
232,982
|
|
|
114,408
|
|
|
187,774
|
|
|
(260,726
|
)
|
|||||
Net income from discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
12,392
|
|
|
—
|
|
|
—
|
|
|||||
Net income (loss)
|
365,359
|
|
|
232,982
|
|
|
126,800
|
|
|
187,774
|
|
|
(260,726
|
)
|
|||||
Net loss attributable to non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,179
|
|
|||||
Net income (loss) attributable to Equinix
|
$
|
365,359
|
|
|
$
|
232,982
|
|
|
$
|
126,800
|
|
|
$
|
187,774
|
|
|
$
|
(259,547
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings per share ("EPS") attributable to Equinix:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic EPS from continuing operations
|
$
|
4.58
|
|
|
$
|
3.03
|
|
|
$
|
1.63
|
|
|
$
|
3.25
|
|
|
$
|
(4.96
|
)
|
Basic EPS from discontinued operations
|
—
|
|
|
—
|
|
|
0.18
|
|
|
—
|
|
|
—
|
|
|||||
Basic EPS
|
$
|
4.58
|
|
|
$
|
3.03
|
|
|
$
|
1.81
|
|
|
$
|
3.25
|
|
|
$
|
(4.96
|
)
|
Weighted-average shares
|
79,779
|
|
|
76,854
|
|
|
70,117
|
|
|
57,790
|
|
|
52,359
|
|
|||||
Diluted EPS from continuing operations
|
$
|
4.56
|
|
|
$
|
3.00
|
|
|
$
|
1.62
|
|
|
$
|
3.21
|
|
|
$
|
(4.96
|
)
|
Diluted EPS from discontinued operations
|
—
|
|
|
—
|
|
|
0.17
|
|
|
—
|
|
|
—
|
|
|||||
Diluted EPS
|
$
|
4.56
|
|
|
$
|
3.00
|
|
|
$
|
1.79
|
|
|
$
|
3.21
|
|
|
$
|
(4.96
|
)
|
Weighted-average shares
|
80,197
|
|
|
77,535
|
|
|
70,816
|
|
|
58,483
|
|
|
52,359
|
|
|||||
Dividends per share
(3)
|
$
|
9.12
|
|
|
$
|
8.00
|
|
|
$
|
7.00
|
|
|
$
|
17.71
|
|
|
$
|
7.57
|
|
|
(1)
|
On January 1, 2018, we adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. The impacts are primarily related to the costs to obtain a customer contract and from the recognition of installation revenue, which are recognized over the contract period, rather than over the estimated installation life as under the prior revenue standard. The consolidated statement of operations for the year ended December 31, 2018 reflected the adoption of Topic 606. See Note 1 of the Notes to Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K.
|
(2)
|
The higher income tax expense for the year ended December 31, 2014 was primarily attributed to the de-recognition of $324.1 million of net deferred tax assets and deferred tax liabilities in December 2014, when our Board of Directors formally approved our conversion to a REIT and we reassessed the deferred tax assets and deferred tax liabilities of our U.S. operations included in the REIT structure.
|
(3)
|
During the year ended December 31, 2015, we paid $10.95 per share of special distribution and $6.76 per share of quarterly cash dividend. During the year ended December 31, 2014, we paid $7.57 per share of special distribution.
|
|
As of December 31,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Consolidated Balance Sheet Data:
|
(in thousands)
|
||||||||||||||||||
Cash, cash equivalents and short-term and long-term investments
|
$
|
610,706
|
|
|
$
|
1,450,031
|
|
|
$
|
761,927
|
|
|
$
|
2,246,297
|
|
|
$
|
1,140,751
|
|
Accounts receivable, net
|
630,119
|
|
|
576,313
|
|
|
396,245
|
|
|
291,964
|
|
|
262,570
|
|
|||||
Property, plant and equipment, net
|
11,026,020
|
|
|
9,394,602
|
|
|
7,199,210
|
|
|
5,606,436
|
|
|
4,998,270
|
|
|||||
Total assets
(1) (2)
|
20,244,638
|
|
|
18,691,457
|
|
|
12,608,371
|
|
|
10,356,695
|
|
|
7,781,978
|
|
|||||
Capital lease and other financing obligations, less current portion
|
1,441,077
|
|
|
1,620,256
|
|
|
1,410,742
|
|
|
1,287,139
|
|
|
1,168,042
|
|
|||||
Mortgage and loans payable, less current portion
(1)
|
1,310,663
|
|
|
1,393,118
|
|
|
1,369,087
|
|
|
472,769
|
|
|
532,809
|
|
|||||
Senior notes, less current portion
(1)
|
8,128,785
|
|
|
6,923,849
|
|
|
3,810,770
|
|
|
3,804,634
|
|
|
2,717,046
|
|
|||||
Convertible debt, less current portion
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
145,229
|
|
|||||
Total stockholders' equity
(2)
|
7,219,279
|
|
|
6,849,790
|
|
|
4,365,829
|
|
|
2,745,386
|
|
|
2,270,131
|
|
|
(1)
|
The company adopted ASU 2015-03 during the year ended December 31, 2015. As a result, debt issuance costs of $35.5 million were reclassified from other assets to debt as of December 31, 2014.
|
(2)
|
On January 1, 2018, we adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. We recorded a net increase to opening retained earnings of
$269.8 million
as of January 1, 2018 due to the cumulative impact of adopting Topic 606, with the impact primarily related to the costs to obtain a customer contract and from the recognition of installation revenue, which are recognized over the contract period, rather than over the estimated installation life as under the prior revenue standard. See Note 1 of the Notes to Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K.
|
ITEM 7.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
Overview
|
•
|
Results of Operations
|
•
|
Non-GAAP Financial Measures
|
•
|
Liquidity and Capital Resources
|
•
|
Contractual Obligations and Off-Balance-Sheet Arrangements
|
•
|
Critical Accounting Policies and Estimates
|
•
|
Recent Accounting Pronouncements
|
|
Years Ended December 31,
|
|
% Change
|
||||||||||||
|
2018
|
|
%
|
|
2017
|
|
%
|
|
Actual
|
|
Constant Currency
|
||||
Americas:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Recurring revenues
|
$
|
2,357,326
|
|
|
46%
|
|
$
|
2,062,352
|
|
|
47%
|
|
14%
|
|
15%
|
Non-recurring revenues
|
127,408
|
|
|
3%
|
|
110,408
|
|
|
3%
|
|
15%
|
|
16%
|
||
|
2,484,734
|
|
|
49%
|
|
2,172,760
|
|
|
50%
|
|
14%
|
|
15%
|
||
EMEA:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Recurring revenues
|
1,467,492
|
|
|
29%
|
|
1,266,971
|
|
|
29%
|
|
16%
|
|
12%
|
||
Non-recurring revenues
|
95,145
|
|
|
2%
|
|
79,285
|
|
|
2%
|
|
20%
|
|
16%
|
||
|
1,562,637
|
|
|
31%
|
|
1,346,256
|
|
|
31%
|
|
16%
|
|
12%
|
||
Asia-Pacific:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Recurring revenues
|
951,684
|
|
|
19%
|
|
790,797
|
|
|
18%
|
|
20%
|
|
19%
|
||
Non-recurring revenues
|
72,599
|
|
|
1%
|
|
58,615
|
|
|
1%
|
|
24%
|
|
23%
|
||
|
1,024,283
|
|
|
20%
|
|
849,412
|
|
|
19%
|
|
21%
|
|
20%
|
||
Total:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Recurring revenues
|
4,776,502
|
|
|
94%
|
|
4,120,120
|
|
|
94%
|
|
16%
|
|
15%
|
||
Non-recurring revenues
|
295,152
|
|
|
6%
|
|
248,308
|
|
|
6%
|
|
19%
|
|
18%
|
||
|
$
|
5,071,654
|
|
|
100%
|
|
$
|
4,368,428
|
|
|
100%
|
|
16%
|
|
15%
|
|
Years Ended December 31,
|
|
% Change
|
||||||||||||
|
2018
|
|
%
|
|
2017
|
|
%
|
|
Actual
|
|
Constant Currency
|
||||
Americas
|
$
|
1,113,854
|
|
|
43%
|
|
$
|
958,845
|
|
|
44%
|
|
16%
|
|
18%
|
EMEA
|
916,751
|
|
|
35%
|
|
749,933
|
|
|
34%
|
|
22%
|
|
18%
|
||
Asia-Pacific
|
574,870
|
|
|
22%
|
|
484,371
|
|
|
22%
|
|
19%
|
|
18%
|
||
Total
|
$
|
2,605,475
|
|
|
100%
|
|
$
|
2,193,149
|
|
|
100%
|
|
19%
|
|
18%
|
|
|
Years Ended December 31,
|
||
|
|
2018
|
|
2017
|
Cost of revenues as a percentage of revenues:
|
|
|
|
|
Americas
|
|
45%
|
|
44%
|
EMEA
|
|
59%
|
|
56%
|
Asia-Pacific
|
|
56%
|
|
57%
|
Total
|
|
51%
|
|
50%
|
|
Years ended December 31,
|
|
% Change
|
||||||||||||
|
2018
|
|
%
|
|
2017
|
|
%
|
|
Actual
|
|
Constant Currency
|
||||
Americas
|
$
|
391,386
|
|
|
62%
|
|
$
|
349,666
|
|
|
60%
|
|
12%
|
|
13%
|
EMEA
|
152,336
|
|
|
24%
|
|
153,811
|
|
|
26%
|
|
(1)%
|
|
(4)%
|
||
Asia-Pacific
|
89,980
|
|
|
14%
|
|
78,247
|
|
|
14%
|
|
15%
|
|
14%
|
||
Total
|
$
|
633,702
|
|
|
100%
|
|
$
|
581,724
|
|
|
100%
|
|
9%
|
|
8%
|
|
Years Ended December 31,
|
||
|
2018
|
|
2017
|
Sales and marketing expenses as a percentage of revenues:
|
|
|
|
Americas
|
16%
|
|
16%
|
EMEA
|
10%
|
|
11%
|
Asia-Pacific
|
9%
|
|
9%
|
Total
|
12%
|
|
13%
|
|
Years Ended December 31,
|
|
% Change
|
||||||||||||
|
2018
|
|
%
|
|
2017
|
|
%
|
|
Actual
|
|
Constant Currency
|
||||
Americas
|
$
|
554,169
|
|
|
67%
|
|
$
|
472,942
|
|
|
63%
|
|
17%
|
|
18%
|
EMEA
|
184,364
|
|
|
22%
|
|
195,430
|
|
|
26%
|
|
(6)%
|
|
(8)%
|
||
Asia-Pacific
|
88,161
|
|
|
11%
|
|
77,534
|
|
|
11%
|
|
14%
|
|
12%
|
||
Total
|
$
|
826,694
|
|
|
100%
|
|
$
|
745,906
|
|
|
100%
|
|
11%
|
|
10%
|
|
Years Ended December 31,
|
||
|
2018
|
|
2017
|
General and Administrative expenses as a percentage of revenues:
|
|
|
|
Americas
|
22%
|
|
22%
|
EMEA
|
12%
|
|
15%
|
Asia-Pacific
|
9%
|
|
9%
|
Total
|
16%
|
|
17%
|
|
Years Ended December 31,
|
|
% Change
|
||||||||||||
|
2018
|
|
%
|
|
2017
|
|
%
|
|
Actual
|
|
Constant Currency
|
||||
Americas
|
$
|
412,610
|
|
|
42%
|
|
$
|
363,220
|
|
|
45%
|
|
14%
|
|
15%
|
EMEA
|
312,163
|
|
|
32%
|
|
237,854
|
|
|
29%
|
|
31%
|
|
25%
|
||
Asia-Pacific
|
252,610
|
|
|
26%
|
|
207,940
|
|
|
26%
|
|
21%
|
|
20%
|
||
Total
|
$
|
977,383
|
|
|
100%
|
|
$
|
809,014
|
|
|
100%
|
|
21%
|
|
19%
|
|
Years Ended December 31,
|
|
% Change
|
||||||||||||||||
|
2018
|
|
%
|
|
2017
|
|
%
|
|
Actual
|
|
Constant Currency
|
||||||||
Americas
|
$
|
1,183,831
|
|
|
49
|
%
|
|
$
|
1,034,694
|
|
|
51
|
%
|
|
14
|
%
|
|
15
|
%
|
EMEA
|
698,280
|
|
|
29
|
%
|
|
582,697
|
|
|
28
|
%
|
|
20
|
%
|
|
15
|
%
|
||
Asia-Pacific
|
531,129
|
|
|
22
|
%
|
|
434,650
|
|
|
21
|
%
|
|
22
|
%
|
|
21
|
%
|
||
Total
|
$
|
2,413,240
|
|
|
100
|
%
|
|
$
|
2,052,041
|
|
|
100
|
%
|
|
18
|
%
|
|
17
|
%
|
|
Years Ended December 31,
|
|
% Change
|
||||||||||||
|
2017
|
|
%
|
|
2016
|
|
%
|
|
Actual
|
|
Constant Currency
|
||||
Americas:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Recurring revenues
|
$
|
2,062,352
|
|
|
47%
|
|
$
|
1,593,084
|
|
|
44%
|
|
29%
|
|
29%
|
Non-recurring revenues
|
110,408
|
|
|
3%
|
|
86,465
|
|
|
3%
|
|
28%
|
|
27%
|
||
|
2,172,760
|
|
|
50%
|
|
1,679,549
|
|
|
47%
|
|
29%
|
|
29%
|
||
EMEA:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Recurring revenues
|
1,266,971
|
|
|
29%
|
|
1,106,652
|
|
|
31%
|
|
14%
|
|
15%
|
||
Non-recurring revenues
|
79,285
|
|
|
2%
|
|
64,687
|
|
|
1%
|
|
23%
|
|
23%
|
||
|
1,346,256
|
|
|
31%
|
|
1,171,339
|
|
|
32%
|
|
15%
|
|
15%
|
||
Asia-Pacific:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Recurring revenues
|
790,797
|
|
|
18%
|
|
717,638
|
|
|
20%
|
|
10%
|
|
11%
|
||
Non-recurring revenues
|
58,615
|
|
|
1%
|
|
43,463
|
|
|
1%
|
|
35%
|
|
36%
|
||
|
849,412
|
|
|
19%
|
|
761,101
|
|
|
21%
|
|
12%
|
|
12%
|
||
Total:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Recurring revenues
|
4,120,120
|
|
|
94%
|
|
3,417,374
|
|
|
95%
|
|
21%
|
|
21%
|
||
Non-recurring revenues
|
248,308
|
|
|
6%
|
|
194,615
|
|
|
5%
|
|
28%
|
|
28%
|
||
|
$
|
4,368,428
|
|
|
100%
|
|
$
|
3,611,989
|
|
|
100%
|
|
21%
|
|
21%
|
|
Years Ended December 31,
|
|
% Change
|
||||||||||||
|
2017
|
|
%
|
|
2016
|
|
%
|
|
Actual
|
|
Constant Currency
|
||||
Americas
|
$
|
958,845
|
|
|
44%
|
|
$
|
700,544
|
|
|
38%
|
|
37%
|
|
36%
|
EMEA
|
749,933
|
|
|
34%
|
|
653,766
|
|
|
36%
|
|
15%
|
|
15%
|
||
Asia-Pacific
|
484,371
|
|
|
22%
|
|
466,560
|
|
|
26%
|
|
4%
|
|
5%
|
||
Total
|
$
|
2,193,149
|
|
|
100%
|
|
$
|
1,820,870
|
|
|
100%
|
|
20%
|
|
20%
|
|
Years Ended December 31,
|
||
|
2017
|
|
2016
|
Cost of revenues as a percentage of revenues:
|
|
|
|
Americas
|
44%
|
|
42%
|
EMEA
|
56%
|
|
56%
|
Asia-Pacific
|
57%
|
|
61%
|
Total
|
50%
|
|
50%
|
|
Years Ended December 31,
|
|
% Change
|
||||||||||||
|
2017
|
|
%
|
|
2016
|
|
%
|
|
Actual
|
|
Constant Currency
|
||||
Americas
|
$
|
349,666
|
|
|
60%
|
|
$
|
230,900
|
|
|
53%
|
|
51%
|
|
51%
|
EMEA
|
153,811
|
|
|
26%
|
|
137,887
|
|
|
31%
|
|
12%
|
|
14%
|
||
Asia-Pacific
|
78,247
|
|
|
14%
|
|
69,955
|
|
|
16%
|
|
12%
|
|
13%
|
||
Total
|
$
|
581,724
|
|
|
100%
|
|
$
|
438,742
|
|
|
100%
|
|
33%
|
|
33%
|
|
Years Ended December 31,
|
||
|
2017
|
|
2016
|
Sales and marketing expenses as a percentage of revenues:
|
|
|
|
Americas
|
16%
|
|
14%
|
EMEA
|
11%
|
|
12%
|
Asia-Pacific
|
9%
|
|
9%
|
Total
|
13%
|
|
12%
|
|
Years Ended December 31,
|
|
% Change
|
||||||||||||
|
2017
|
|
%
|
|
2016
|
|
%
|
|
Actual
|
|
Constant Currency
|
||||
Americas
|
$
|
472,942
|
|
|
63%
|
|
$
|
391,637
|
|
|
56%
|
|
21%
|
|
20%
|
EMEA
|
195,430
|
|
|
26%
|
|
228,310
|
|
|
33%
|
|
(14)%
|
|
(12)%
|
||
Asia-Pacific
|
77,534
|
|
|
11%
|
|
74,614
|
|
|
11%
|
|
4%
|
|
5%
|
||
Total
|
$
|
745,906
|
|
|
100%
|
|
$
|
694,561
|
|
|
100%
|
|
7%
|
|
8%
|
|
Years Ended December 31,
|
||
|
2017
|
|
2016
|
General and Administrative expenses as a percentage of revenues:
|
|
|
|
Americas
|
22%
|
|
23%
|
EMEA
|
15%
|
|
19%
|
Asia-Pacific
|
9%
|
|
10%
|
Total
|
17%
|
|
19%
|
|
Years Ended December 31,
|
|
% Change
|
||||||||||||
|
2017
|
|
%
|
|
2016
|
|
%
|
|
Actual
|
|
Constant Currency
|
||||
Americas
|
$
|
363,220
|
|
|
45%
|
|
$
|
352,180
|
|
|
57%
|
|
3%
|
|
3%
|
EMEA
|
237,854
|
|
|
29%
|
|
124,853
|
|
|
20%
|
|
91%
|
|
85%
|
||
Asia-Pacific
|
207,940
|
|
|
26%
|
|
141,706
|
|
|
23%
|
|
47%
|
|
47%
|
||
Total
|
$
|
809,014
|
|
|
100%
|
|
$
|
618,739
|
|
|
100%
|
|
31%
|
|
30%
|
|
Years Ended December 31,
|
|
% Change
|
||||||||||||
|
2017
|
|
%
|
|
2016
|
|
%
|
|
Actual
|
|
Constant Currency
|
||||
Americas
|
$
|
1,034,694
|
|
|
51%
|
|
$
|
787,311
|
|
|
47%
|
|
31%
|
|
31%
|
EMEA
|
582,697
|
|
|
28%
|
|
494,263
|
|
|
30%
|
|
18%
|
|
17%
|
||
Asia-Pacific
|
434,650
|
|
|
21%
|
|
375,900
|
|
|
23%
|
|
16%
|
|
16%
|
||
Total
|
$
|
2,052,041
|
|
|
100%
|
|
$
|
1,657,474
|
|
|
100%
|
|
24%
|
|
24%
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Income from operations
|
$
|
977,383
|
|
|
$
|
809,014
|
|
|
$
|
618,739
|
|
Depreciation, amortization, and accretion expense
|
1,226,741
|
|
|
1,028,892
|
|
|
843,510
|
|
|||
Stock-based compensation expense
|
180,716
|
|
|
175,500
|
|
|
156,148
|
|
|||
Acquisition costs
|
34,413
|
|
|
38,635
|
|
|
64,195
|
|
|||
Impairment charges
|
—
|
|
|
—
|
|
|
7,698
|
|
|||
Gain on asset sales
|
(6,013
|
)
|
|
—
|
|
|
(32,816
|
)
|
|||
Adjusted EBITDA
|
$
|
2,413,240
|
|
|
$
|
2,052,041
|
|
|
$
|
1,657,474
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Net income
|
$
|
365,359
|
|
|
$
|
232,982
|
|
|
$
|
126,800
|
|
Adjustments:
|
|
|
|
|
|
||||||
Real estate depreciation and amortization
|
883,118
|
|
|
754,351
|
|
|
626,564
|
|
|||
(Gain) loss on disposition of real estate property
|
4,643
|
|
|
4,945
|
|
|
(28,388
|
)
|
|||
Adjustments for FFO from unconsolidated joint ventures
|
—
|
|
|
85
|
|
|
113
|
|
|||
FFO
|
$
|
1,253,120
|
|
|
$
|
992,363
|
|
|
$
|
725,089
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
FFO
|
$
|
1,253,120
|
|
|
$
|
992,363
|
|
|
$
|
725,089
|
|
Adjustments:
|
|
|
|
|
|
||||||
Installation revenue adjustment
|
10,858
|
|
|
24,496
|
|
|
20,161
|
|
|||
Straight-line rent expense adjustment
|
7,203
|
|
|
8,925
|
|
|
7,700
|
|
|||
Contract cost adjustment
|
(20,358
|
)
|
|
—
|
|
|
—
|
|
|||
Amortization of deferred financing costs and debt discounts and premiums
|
13,618
|
|
|
24,449
|
|
|
18,696
|
|
|||
Stock-based compensation expense
|
180,716
|
|
|
175,500
|
|
|
156,149
|
|
|||
Non-real estate depreciation expense
|
140,955
|
|
|
111,121
|
|
|
87,781
|
|
|||
Amortization expense
|
203,416
|
|
|
177,008
|
|
|
122,862
|
|
|||
Accretion expense (adjustment)
|
(748
|
)
|
|
(13,588
|
)
|
|
6,303
|
|
|||
Recurring capital expenditures
|
(203,053
|
)
|
|
(167,995
|
)
|
|
(141,819
|
)
|
|||
Loss on debt extinguishment
|
51,377
|
|
|
65,772
|
|
|
12,276
|
|
|||
Acquisition costs
|
34,413
|
|
|
38,635
|
|
|
64,195
|
|
|||
Impairment charges
|
—
|
|
|
—
|
|
|
7,698
|
|
|||
Net income from discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
(12,392
|
)
|
|||
Income tax expense adjustment
|
(12,420
|
)
|
|
371
|
|
|
3,680
|
|
|||
Adjustments for AFFO from unconsolidated joint ventures
|
—
|
|
|
(17
|
)
|
|
(40
|
)
|
|||
AFFO
|
$
|
1,659,097
|
|
|
$
|
1,437,040
|
|
|
$
|
1,078,339
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
(in thousands)
|
||||||||||
Net cash provided by operating activities
|
$
|
1,815,426
|
|
|
$
|
1,439,233
|
|
|
$
|
1,019,353
|
|
Net cash used in investing activities
|
(3,075,528
|
)
|
|
(5,400,826
|
)
|
|
(2,045,668
|
)
|
|||
Net cash provided by (used in) financing activities
|
470,912
|
|
|
4,607,860
|
|
|
(897,065
|
)
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Thereafter
|
|
Total
|
||||||||||||||
Term loans and other loans payable
(1)
|
$
|
73,128
|
|
|
$
|
73,443
|
|
|
$
|
73,134
|
|
|
$
|
1,165,871
|
|
|
$
|
2,491
|
|
|
$
|
2,339
|
|
|
$
|
1,390,406
|
|
Senior notes
(1)
|
300,000
|
|
|
300,000
|
|
|
150,000
|
|
|
750,000
|
|
|
1,000,000
|
|
|
6,000,125
|
|
|
8,500,125
|
|
|||||||
Interest
(2)
|
411,944
|
|
|
395,556
|
|
|
379,060
|
|
|
352,907
|
|
|
278,214
|
|
|
600,648
|
|
|
2,418,329
|
|
|||||||
Capital lease and other financing obligations
(3)
|
184,151
|
|
|
170,592
|
|
|
169,086
|
|
|
168,810
|
|
|
164,886
|
|
|
1,601,251
|
|
|
2,458,776
|
|
|||||||
Operating leases
(4)
|
187,280
|
|
|
179,515
|
|
|
166,159
|
|
|
158,115
|
|
|
147,677
|
|
|
1,130,494
|
|
|
1,969,240
|
|
|||||||
Other contractual commitments
(5)
|
1,129,604
|
|
|
149,168
|
|
|
36,839
|
|
|
25,680
|
|
|
19,789
|
|
|
164,090
|
|
|
1,525,170
|
|
|||||||
Asset retirement obligations
(6)
|
6,776
|
|
|
3,801
|
|
|
3,972
|
|
|
11,633
|
|
|
5,582
|
|
|
64,899
|
|
|
96,663
|
|
|||||||
|
$
|
2,292,883
|
|
|
$
|
1,272,075
|
|
|
$
|
978,250
|
|
|
$
|
2,633,016
|
|
|
$
|
1,618,639
|
|
|
$
|
9,563,846
|
|
|
$
|
18,358,709
|
|
|
(1)
|
Represents principal of senior notes, term loans and other loans payable, as well as premium on mortgage payable.
|
(2)
|
Represents interest on mortgage payable, senior notes, term loan facilities and other loans payable based on their approximate interest rates as of
December 31, 2018
, as well as the credit facility fee for the revolving credit facility.
|
(3)
|
Represents principal and interest.
|
(4)
|
Represents minimum operating lease payments, excluding potential lease renewals.
|
(5)
|
Represents unaccrued contractual commitments. Other contractual commitments are described below.
|
(6)
|
Represents liability, net of future accretion expense.
|
•
|
Accounting for income taxes;
|
•
|
Accounting for business combinations;
|
•
|
Accounting for impairment of goodwill; and
|
•
|
Accounting for property, plant and equipment.
|
ITEM 7A.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||
|
Carrying
Value
(1)
|
|
Fair Value
|
|
Carrying
Value
(1)
|
|
Fair Value
|
||||||||
Mortgage and loans payable
|
$
|
1,388,524
|
|
|
$
|
1,389,632
|
|
|
$
|
1,468,275
|
|
|
$
|
1,464,877
|
|
Senior notes
|
8,500,125
|
|
|
8,422,211
|
|
|
7,002,000
|
|
|
7,288,673
|
|
|
(1)
|
The carrying value is gross of debt issuance cost, debt discount and debt premium.
|
ITEM 8.
|
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
ITEM 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
ITEM 9A.
|
CONTROLS AND PROCEDURES
|
ITEM 9B.
|
OTHER INFORMATION
|
ITEM 10.
|
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
|
ITEM 11.
|
EXECUTIVE COMPENSATION
|
ITEM 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
ITEM 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
ITEM 14.
|
PRINCIPAL ACCOUNTANT FEES AND SERVICES
|
ITEM 15.
|
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
|
|
|
|
|
Incorporated by Reference
|
|
|
||||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Filing Date/
Period End Date
|
|
Exhibit
|
|
Filed
Herewith
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
5/29/15
|
|
2.1
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
5/29/15
|
|
2.2
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
12/31/15
|
|
2.3
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
12/6/16
|
|
2.1
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
12/31/16
|
|
2.5
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
5/1/17
|
|
2.1
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
8/8/18
|
|
2.7
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K/A
|
|
12/31/02
|
|
3.1
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
6/14/11
|
|
3.1
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Filing Date/
Period End Date
|
|
Exhibit
|
|
Filed
Herewith
|
|
|
8-K
|
|
6/11/13
|
|
3.1
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
6/30/2014
|
|
3.4
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K/A
|
|
12/31/02
|
|
3.3
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
3/29/16
|
|
3.1
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
4.1
|
|
Reference is made to Exhibits 3.1, 3.2, 3.3, 3.4, 3.5 and 3.6.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
3/5/13
|
|
4.3
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
4.3
|
|
Form of 5.375% Senior Note due 2023 (see Exhibit 4.2).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
11/20/14
|
|
4.1
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
11/20/14
|
|
4.2
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
4.6
|
|
Form of 5.375% Senior Note due 2022 (see Exhibit 4.5).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
11/20/14
|
|
4.4
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
4.8
|
|
Form of 5.750% Senior Note due 2025 (see Exhibit 4.7).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
12/04/15
|
|
4.2
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
4.10
|
|
Form of 5.875% Senior Note due 2026 (see Exhibit 4.9).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
3/22/17
|
|
4.2
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
4.12
|
|
Form of 5.375% Senior Notes due 2027 (see Exhibit 4.11).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
9/20/17
|
|
4.2
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
4.14
|
|
Form of 2.875% Senior Notes due 2025 (see Exhibit 4.13).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Filing Date/
Period End Date
|
|
Exhibit
|
|
Filed
Herewith
|
|
|
8-K
|
|
12/05/17
|
|
4.1
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
12/05/17
|
|
4.2
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
4.17
|
|
Form of 2.875% Senior Notes due 2026 (see Exhibit 4.16).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
03/14/18
|
|
4.2
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
4.19
|
|
Form of 2.875% Senior Notes due 2024 (see Exhibit 4.18).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8-K
|
|
04/03/18
|
|
4.2
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
4.21
|
|
Form of 5.00% Senior Notes due April 2019 (see Exhibit 4.20).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.22
|
|
Form of 5.00% Senior Notes due October 2019 (see Exhibit 4.20).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.23
|
|
Form of 5.00% Senior Notes due April 2020 (see Exhibit 4.20).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.24
|
|
Form of 5.00% Senior Notes due October 2020 (see Exhibit 4.20).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.25
|
|
Form of 5.00% Senior Notes due April 2021 (see Exhibit 4.20).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
12/31/14
|
|
4.13
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
10.1
**
|
|
|
S-4 (File No. 333-93749)
|
|
12/29/1999
|
|
10.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.2
**
|
|
|
10-K
|
|
12/31/16
|
|
10.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.3
**
|
|
|
10-K
|
|
12/31/16
|
|
10.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.4
**
|
|
|
10-K
|
|
12/31/16
|
|
10.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.5
**
|
|
|
10-Q
|
|
6/30/14
|
|
10.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.6
**
|
|
|
10-K
|
|
12/31/08
|
|
10.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.7
**
|
|
|
10-K
|
|
12/31/08
|
|
10.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.8
**
|
|
|
10-K
|
|
12/31/08
|
|
10.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Filing Date/
Period End Date
|
|
Exhibit
|
|
Filed
Herewith
|
10.9
**
|
|
|
S-1/A
(File No. 333-137607) filed by Switch & Data Facilities Company
|
|
2/5/07
|
|
10.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.10
**
|
|
|
10-Q
|
|
9/30/10
|
|
10.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.11
**
|
|
|
10-K
|
|
12/31/10
|
|
10.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.12
**
|
|
|
10-K
|
|
12/31/10
|
|
10.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.13
**
|
|
|
10-Q
|
|
6/30/13
|
|
10.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.14
**
|
|
|
10-Q
|
|
9/30/13
|
|
10.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.15
**
|
|
|
10-Q
|
|
9/30/13
|
|
10.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.16
**
|
|
|
10-Q
|
|
3/31/14
|
|
10.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.17
**
|
|
|
10-Q
|
|
3/31/14
|
|
10.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.18
**
|
|
|
10-Q
|
|
3/31/14
|
|
10.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.19
**
|
|
|
10-Q
|
|
3/31/16
|
|
10.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.20
**
|
|
|
10-Q
|
|
3/31/16
|
|
10.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.21
**
|
|
|
10-Q
|
|
3/31/16
|
|
10.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.22
**
|
|
|
10-Q
|
|
3/31/17
|
|
10.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.23
**
|
|
|
10-Q
|
|
3/31/17
|
|
10.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.24
**
|
|
|
10-Q
|
|
3/31/17
|
|
10.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Filing Date/
Period End Date
|
|
Exhibit
|
|
Filed
Herewith
|
10.25
**
|
|
|
10-Q
|
|
3/31/17
|
|
10.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.26
**
|
|
|
10-Q
|
|
3/31/18
|
|
10.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.27
**
|
|
|
10-Q
|
|
3/31/18
|
|
10.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.28
**
|
|
|
10-Q
|
|
3/31/18
|
|
10.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.29
**
|
|
|
10-Q
|
|
3/31/18
|
|
10.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
9/30/14
|
|
10.67
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
6/30/16
|
|
10.55
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
10.32
**
|
|
|
10-Q
|
|
6/30/16
|
|
10.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
9/30/16
|
|
10.42
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-K
|
|
12/31/2017
|
|
10.40
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
10-Q
|
|
8/8/2018
|
|
10.35
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|
||||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Filing Date/
Period End Date
|
|
Exhibit
|
|
Filed
Herewith
|
|
|
10-Q
|
|
8/8/2018
|
|
10.36
|
|
|
||
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document.
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Document.
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Document.
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Labels Document.
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Document.
|
|
|
|
|
|
|
|
X
|
(b)
|
Exhibits.
|
(c)
|
Financial Statement Schedule.
|
ITEM 16.
|
FORM 10-K SUMMARY
|
|
|
EQUINIX, INC.
(Registrant)
|
|
|
|
February 22, 2019
|
By
|
/s/ CHARLES MEYERS
|
|
|
Charles Meyers
|
|
|
Chief Executive Officer and President
|
Signature
|
Title
|
Date
|
/s/ CHARLES MEYERS
|
Chief Executive Officer and President (Principal Executive Officer)
|
February 22, 2019
|
Charles Meyers
|
||
/s/ KEITH D. TAYLOR
|
Chief Financial Officer (Principal Financial Officer)
|
February 22, 2019
|
Keith D. Taylor
|
||
/s/ SIMON MILLER
|
Chief Accounting Officer (Principal Accounting Officer)
|
February 22, 2019
|
Simon Miller
|
||
/s/ PETER F. VAN CAMP
|
Executive Chairman
|
February 22, 2019
|
Peter F. Van Camp
|
||
/s/ THOMAS A. BARTLETT
|
Director
|
February 22, 2019
|
Thomas A. Bartlett
|
||
/s/ NANCI CALDWELL
|
Director
|
February 22, 2019
|
Nanci Caldwell
|
||
/s/ GARY F. HROMADKO
|
Director
|
February 22, 2019
|
Gary F. Hromadko
|
||
/s/ SCOTT G. KRIENS
|
Director
|
February 22, 2019
|
Scott G. Kriens
|
||
/s/ WILLIAM K. LUBY
|
Director
|
February 22, 2019
|
William K. Luby
|
||
/s/ IRVING F. LYONS, III
|
Director
|
February 22, 2019
|
Irving F. Lyons, III
|
||
/s/ CHRISTOPHER B. PAISLEY
|
Director
|
February 22, 2019
|
Christopher B. Paisley
|
Exhibit
Number
|
|
Description of Document
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
101.INS
|
|
XBRL Instance Document.
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Document.
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Document.
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Labels Document.
|
|
|
|
101. PRE
|
|
XBRL Taxonomy Extension Presentation Document.
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
Assets
|
|||||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
606,166
|
|
|
$
|
1,412,517
|
|
Short-term investments
|
4,540
|
|
|
28,271
|
|
||
Accounts receivable, net of allowance for doubtful accounts of $15,950 and $18,228
|
630,119
|
|
|
576,313
|
|
||
Other current assets
|
274,857
|
|
|
232,027
|
|
||
Total current assets
|
1,515,682
|
|
|
2,249,128
|
|
||
Long-term investments
|
—
|
|
|
9,243
|
|
||
Property, plant and equipment, net
|
11,026,020
|
|
|
9,394,602
|
|
||
Goodwill
|
4,836,388
|
|
|
4,411,762
|
|
||
Intangible assets, net
|
2,333,296
|
|
|
2,384,972
|
|
||
Other assets
|
533,252
|
|
|
241,750
|
|
||
Total assets
|
$
|
20,244,638
|
|
|
$
|
18,691,457
|
|
Liabilities and Stockholders' Equity
|
|||||||
Current liabilities:
|
|
|
|
||||
Accounts payable and accrued expenses
|
$
|
756,692
|
|
|
$
|
719,257
|
|
Accrued property, plant and equipment
|
179,412
|
|
|
220,367
|
|
||
Current portion of capital lease and other financing obligations
|
77,844
|
|
|
78,705
|
|
||
Current portion of mortgage and loans payable
|
73,129
|
|
|
64,491
|
|
||
Current portion of senior notes
|
300,999
|
|
|
—
|
|
||
Other current liabilities
|
126,995
|
|
|
159,914
|
|
||
Total current liabilities
|
1,515,071
|
|
|
1,242,734
|
|
||
Capital lease and other financing obligations, less current portion
|
1,441,077
|
|
|
1,620,256
|
|
||
Mortgage and loans payable, less current portion
|
1,310,663
|
|
|
1,393,118
|
|
||
Senior notes, less current portion
|
8,128,785
|
|
|
6,923,849
|
|
||
Other liabilities
|
629,763
|
|
|
661,710
|
|
||
Total liabilities
|
13,025,359
|
|
|
11,841,667
|
|
||
Commitments and contingencies (Note 15)
|
|
|
|
||||
Stockholders' equity:
|
|
|
|
||||
Preferred stock, $0.001 par value per share: 100,000,000 shares authorized in 2018 and 2017; zero shares issued and outstanding
|
—
|
|
|
—
|
|
||
Common stock, $0.001 par value per share: 300,000,000 shares authorized in 2018 and 2017; 81,119,117 issued and 80,722,258 outstanding in 2018 and 79,440,404 issued and 79,038,062 outstanding in 2017
|
81
|
|
|
79
|
|
||
Additional paid-in capital
|
10,751,313
|
|
|
10,121,323
|
|
||
Treasury stock, at cost; 396,859 shares in 2018 and 402,342 shares in 2017
|
(145,161
|
)
|
|
(146,320
|
)
|
||
Accumulated dividends
|
(3,331,200
|
)
|
|
(2,592,792
|
)
|
||
Accumulated other comprehensive loss
|
(945,702
|
)
|
|
(785,189
|
)
|
||
Retained earnings
|
889,948
|
|
|
252,689
|
|
||
Total stockholders' equity
|
7,219,279
|
|
|
6,849,790
|
|
||
Total liabilities and stockholders' equity
|
$
|
20,244,638
|
|
|
$
|
18,691,457
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Revenues
|
$
|
5,071,654
|
|
|
$
|
4,368,428
|
|
|
$
|
3,611,989
|
|
Costs and operating expenses:
|
|
|
|
|
|
||||||
Cost of revenues
|
2,605,475
|
|
|
2,193,149
|
|
|
1,820,870
|
|
|||
Sales and marketing
|
633,702
|
|
|
581,724
|
|
|
438,742
|
|
|||
General and administrative
|
826,694
|
|
|
745,906
|
|
|
694,561
|
|
|||
Acquisition costs
|
34,413
|
|
|
38,635
|
|
|
64,195
|
|
|||
Impairment charges
|
—
|
|
|
—
|
|
|
7,698
|
|
|||
Gain on asset sales
|
(6,013
|
)
|
|
—
|
|
|
(32,816
|
)
|
|||
Total costs and operating expenses
|
4,094,271
|
|
|
3,559,414
|
|
|
2,993,250
|
|
|||
Income from operations
|
977,383
|
|
|
809,014
|
|
|
618,739
|
|
|||
Interest income
|
14,482
|
|
|
13,075
|
|
|
3,476
|
|
|||
Interest expense
|
(521,494
|
)
|
|
(478,698
|
)
|
|
(392,156
|
)
|
|||
Other income (expense)
|
14,044
|
|
|
9,213
|
|
|
(57,924
|
)
|
|||
Loss on debt extinguishment
|
(51,377
|
)
|
|
(65,772
|
)
|
|
(12,276
|
)
|
|||
Income from continuing operations before income taxes
|
433,038
|
|
|
286,832
|
|
|
159,859
|
|
|||
Income tax expense
|
(67,679
|
)
|
|
(53,850
|
)
|
|
(45,451
|
)
|
|||
Net income from continuing operations
|
365,359
|
|
|
232,982
|
|
|
114,408
|
|
|||
Net income from discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
12,392
|
|
|||
Net income
|
$
|
365,359
|
|
|
$
|
232,982
|
|
|
$
|
126,800
|
|
|
|
|
|
|
|
||||||
Earnings per share ("EPS"):
|
|
|
|
|
|
||||||
Basic EPS from continuing operations
|
$
|
4.58
|
|
|
$
|
3.03
|
|
|
$
|
1.63
|
|
Basic EPS from discontinued operations
|
—
|
|
|
—
|
|
|
0.18
|
|
|||
Basic EPS
|
$
|
4.58
|
|
|
$
|
3.03
|
|
|
$
|
1.81
|
|
Weighted-average shares
|
79,779
|
|
|
76,854
|
|
|
70,117
|
|
|||
Dilutive EPS from continuing operations
|
$
|
4.56
|
|
|
$
|
3.00
|
|
|
$
|
1.62
|
|
Dilutive EPS from discontinued operations
|
—
|
|
|
—
|
|
|
0.17
|
|
|||
Diluted EPS
|
$
|
4.56
|
|
|
$
|
3.00
|
|
|
$
|
1.79
|
|
Weighted-average shares
|
80,197
|
|
|
77,535
|
|
|
70,816
|
|
|||
Cash dividends declared per common share
|
$
|
9.12
|
|
|
$
|
8.00
|
|
|
$
|
7.00
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Net income
|
$
|
365,359
|
|
|
$
|
232,982
|
|
|
$
|
126,800
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
||||||
Foreign currency translation adjustment ("CTA") gain (loss), net of tax effects of $4,419, $0 and $0
|
(421,743
|
)
|
|
454,269
|
|
|
(507,420
|
)
|
|||
Net investment hedge CTA gain (loss), net of tax effects of $1,358, $0 and $0
|
219,628
|
|
|
(235,292
|
)
|
|
45,505
|
|
|||
Unrealized gain on available-for-sale securities, net of tax effects of $0, $(10) and $(784)
|
—
|
|
|
14
|
|
|
2,249
|
|
|||
Unrealized gain (loss) on cash flow hedges, net of tax effects of $(14,557), $18,542 and $(6,760)
|
43,671
|
|
|
(54,895
|
)
|
|
19,551
|
|
|||
Net actuarial gain (loss) on defined benefit plans, net of tax effects of $(15), $39 and $(8)
|
55
|
|
|
(143
|
)
|
|
32
|
|
|||
Total other comprehensive income (loss), net of tax
|
(158,389
|
)
|
|
163,953
|
|
|
(440,083
|
)
|
|||
Comprehensive income (loss), net of tax
|
$
|
206,970
|
|
|
$
|
396,935
|
|
|
$
|
(313,283
|
)
|
EQUINIX, INC.
Consolidated Statements of Stockholders’ Equity and Other Comprehensive Income (Loss)
For the Three Years Ended December 31, 2018
(in thousands, except share data)
|
|||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Retained
Earnings
(Accumulated
Deficit)
|
|
Total
Stockholders'
Equity
|
||||||||||||||||
|
Common stock
|
|
Treasury stock
|
|
Additional
Paid-in Capital
|
|
Accumulated
Dividends
|
|
|
|
|||||||||||||||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
|
|
|
|
|||||||||||||||||||||
Balance as of December 31, 2015
|
62,134,894
|
|
|
$
|
62
|
|
|
(34,735
|
)
|
|
$
|
(7,373
|
)
|
|
$
|
4,838,444
|
|
|
$
|
(1,468,472
|
)
|
|
$
|
(509,059
|
)
|
|
$
|
(108,216
|
)
|
|
$
|
2,745,386
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
126,800
|
|
|
126,800
|
|
|||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(440,083
|
)
|
|
—
|
|
|
(440,083
|
)
|
|||||||
Issuance of common stock and release of treasury stock for employee equity awards
|
847,374
|
|
|
1
|
|
|
7,099
|
|
|
1,502
|
|
|
33,172
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34,675
|
|
|||||||
Issuance of common stock for TelecityGroup acquisition
|
6,853,500
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
2,077,905
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,077,912
|
|
|||||||
Issuance of common stock, net and release of treasury stock for the exchanges and conversions of 4.75% convertible debt
|
1,981,662
|
|
|
2
|
|
|
(380,779
|
)
|
|
(141,688
|
)
|
|
291,711
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
150,025
|
|
|||||||
Dividend distributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(492,403
|
)
|
|
—
|
|
|
—
|
|
|
(492,403
|
)
|
|||||||
Settlement of accrued dividends on vested equity awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,270
|
|
|
(1,000
|
)
|
|
—
|
|
|
—
|
|
|
7,270
|
|
|||||||
Accrued dividends on unvested equity awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,770
|
)
|
|
—
|
|
|
—
|
|
|
(7,770
|
)
|
|||||||
Tax benefit from employee stock plans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,773
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,773
|
|
|||||||
Stock-based compensation, net of estimated forfeitures
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
161,244
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
161,244
|
|
|||||||
Balance as of December 31, 2016
|
71,817,430
|
|
|
72
|
|
|
(408,415
|
)
|
|
(147,559
|
)
|
|
7,413,519
|
|
|
(1,969,645
|
)
|
|
(949,142
|
)
|
|
18,584
|
|
|
4,365,829
|
|
|||||||
Adjustment from adoption of new accounting standard
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,123
|
|
|
1,123
|
|
|||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
232,982
|
|
|
232,982
|
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
163,953
|
|
|
—
|
|
|
163,953
|
|
|||||||
Issuance of common stock in public offering of common stock, net
|
6,069,444
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
2,126,333
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,126,339
|
|
|||||||
Issuance of common stock and release of treasury stock for employee equity awards
|
790,329
|
|
|
1
|
|
|
6,073
|
|
|
1,239
|
|
|
40,449
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41,689
|
|
|||||||
Issuance of common stock under 2017 ATM Program, net
|
763,201
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
355,082
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
355,082
|
|
|||||||
Dividend distributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(612,085
|
)
|
|
—
|
|
|
—
|
|
|
(612,085
|
)
|
|||||||
Settlement of accrued dividends on vested equity awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,280
|
|
|
(890
|
)
|
|
—
|
|
|
—
|
|
|
3,390
|
|
|||||||
Accrued dividends on unvested equity awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,172
|
)
|
|
—
|
|
|
—
|
|
|
(10,172
|
)
|
|||||||
Stock-based compensation, net of estimated forfeitures
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
181,660
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
181,660
|
|
|||||||
Balance as of December 31, 2017
|
79,440,404
|
|
|
79
|
|
|
(402,342
|
)
|
|
(146,320
|
)
|
|
10,121,323
|
|
|
(2,592,792
|
)
|
|
(785,189
|
)
|
|
252,689
|
|
|
6,849,790
|
|
|||||||
Adjustment from adoption of new accounting standard
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,124
|
)
|
|
271,900
|
|
|
269,776
|
|
|||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
365,359
|
|
|
365,359
|
|
|||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(158,389
|
)
|
|
—
|
|
|
(158,389
|
)
|
|||||||
Issuance of common stock and release of treasury stock for employee equity awards
|
747,779
|
|
|
1
|
|
|
5,483
|
|
|
1,159
|
|
|
48,976
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
50,136
|
|
|||||||
Issuance of common stock under 2017 ATM Program, net
|
930,934
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
388,171
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
388,172
|
|
|
Years Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
365,359
|
|
|
$
|
232,982
|
|
|
$
|
126,800
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation
|
1,024,073
|
|
|
865,472
|
|
|
714,345
|
|
|||
Stock-based compensation
|
180,716
|
|
|
175,500
|
|
|
155,567
|
|
|||
Amortization of intangible assets
|
203,416
|
|
|
177,008
|
|
|
122,862
|
|
|||
Amortization of debt issuance costs and debt discounts and premiums
|
13,618
|
|
|
24,449
|
|
|
19,137
|
|
|||
Provision for allowance for doubtful accounts
|
7,236
|
|
|
5,627
|
|
|
8,260
|
|
|||
Impairment charges
|
—
|
|
|
—
|
|
|
7,698
|
|
|||
Gain on asset sales
|
(6,013
|
)
|
|
—
|
|
|
(32,816
|
)
|
|||
Gain on sale of discontinued operations
|
—
|
|
|
—
|
|
|
(2,351
|
)
|
|||
Loss on debt extinguishment
|
51,377
|
|
|
65,772
|
|
|
12,276
|
|
|||
Other items
|
19,660
|
|
|
(11,243
|
)
|
|
20,609
|
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable
|
(52,931
|
)
|
|
(161,774
|
)
|
|
(100,230
|
)
|
|||
Income taxes, net
|
(10,670
|
)
|
|
(34,936
|
)
|
|
29,020
|
|
|||
Other assets
|
(47,635
|
)
|
|
20,180
|
|
|
(72,831
|
)
|
|||
Accounts payable and accrued expenses
|
35,495
|
|
|
74,488
|
|
|
61,565
|
|
|||
Other liabilities
|
31,725
|
|
|
5,708
|
|
|
(50,558
|
)
|
|||
Net cash provided by operating activities
|
1,815,426
|
|
|
1,439,233
|
|
|
1,019,353
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Purchases of investments
|
(65,180
|
)
|
|
(57,926
|
)
|
|
(42,325
|
)
|
|||
Sales and maturities of investments
|
85,777
|
|
|
46,421
|
|
|
53,164
|
|
|||
Business acquisitions, net of cash and restricted cash acquired
|
(829,687
|
)
|
|
(3,963,280
|
)
|
|
(1,766,606
|
)
|
|||
Purchases of real estate
|
(182,418
|
)
|
|
(95,083
|
)
|
|
(28,118
|
)
|
|||
Purchases of other property, plant and equipment
|
(2,096,174
|
)
|
|
(1,378,725
|
)
|
|
(1,113,365
|
)
|
|||
Proceeds from sale of assets, net of cash transferred
|
12,154
|
|
|
47,767
|
|
|
851,582
|
|
|||
Net cash used in investing activities
|
(3,075,528
|
)
|
|
(5,400,826
|
)
|
|
(2,045,668
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Proceeds from employee equity awards
|
50,136
|
|
|
41,696
|
|
|
34,179
|
|
|||
Payment of dividends and special distribution
|
(738,600
|
)
|
|
(621,497
|
)
|
|
(499,463
|
)
|
|||
Proceeds from public offering of common stock, net of issuance costs
|
388,172
|
|
|
2,481,421
|
|
|
—
|
|
|||
Proceeds from senior notes
|
929,850
|
|
|
3,628,701
|
|
|
—
|
|
|||
Proceeds from loans payable
|
424,650
|
|
|
2,056,876
|
|
|
1,168,304
|
|
|||
Repayment of senior notes
|
—
|
|
|
(500,000
|
)
|
|
—
|
|
|||
Repayment of capital lease and other financing obligations
|
(103,774
|
)
|
|
(93,470
|
)
|
|
(114,385
|
)
|
|||
Repayment of mortgage and loans payable
|
(447,473
|
)
|
|
(2,277,798
|
)
|
|
(1,462,888
|
)
|
|||
Debt extinguishment costs
|
(20,556
|
)
|
|
(26,122
|
)
|
|
(11,380
|
)
|
|||
Debt issuance costs
|
(12,218
|
)
|
|
(81,047
|
)
|
|
(11,381
|
)
|
|||
Other financing activities
|
725
|
|
|
(900
|
)
|
|
(51
|
)
|
|||
Net cash provided by (used in) financing activities
|
470,912
|
|
|
4,607,860
|
|
|
(897,065
|
)
|
|||
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash
|
(33,907
|
)
|
|
31,187
|
|
|
(21,800
|
)
|
|||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
(823,097
|
)
|
|
677,454
|
|
|
(1,945,180
|
)
|
|||
Cash, cash equivalents and restricted cash at beginning of period
|
1,450,701
|
|
|
773,247
|
|
|
2,718,427
|
|
|||
Cash, cash equivalents and restricted cash at end of period
|
$
|
627,604
|
|
|
$
|
1,450,701
|
|
|
$
|
773,247
|
|
Supplemental cash flow information
|
|
|
|
|
|
||||||
Cash paid for taxes
|
$
|
93,375
|
|
|
$
|
72,641
|
|
|
$
|
39,320
|
|
Cash paid for interest
|
$
|
496,795
|
|
|
$
|
444,793
|
|
|
$
|
350,083
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
606,166
|
|
|
$
|
1,412,517
|
|
|
$
|
748,476
|
|
Current portion of restricted cash included in other current assets
|
10,887
|
|
|
26,919
|
|
|
15,065
|
|
|||
Non-current portion of restricted cash included in other assets
|
10,551
|
|
|
11,265
|
|
|
9,706
|
|
|||
Total cash, cash equivalents, and restricted cash shown in the consolidated statement of cash flows
|
$
|
627,604
|
|
|
$
|
1,450,701
|
|
|
$
|
773,247
|
|
|
|
|
|
|
|
|
2018
|
|
2017
|
|
2016
|
|||
Americas
|
49
|
%
|
|
50
|
%
|
|
47
|
%
|
EMEA
|
31
|
%
|
|
31
|
%
|
|
32
|
%
|
Asia-Pacific
|
20
|
%
|
|
19
|
%
|
|
21
|
%
|
Core systems
|
3-25 years
|
Buildings
|
12-58 years
|
Leasehold improvements
|
12-40 years
|
Personal Property
|
3-10 years
|
•
|
Non-financial assets and non-financial liabilities initially measured at fair value in a business combination or other new basis event, but not measured at fair value in subsequent reporting periods;
|
•
|
Reporting units and non-financial assets and non-financial liabilities measured at fair value for goodwill impairment tests;
|
•
|
Indefinite-lived intangible assets measured at fair value for impairment assessments;
|
•
|
Non-financial long-lived assets or asset groups measured at fair value for impairment assessments or disposal; and
|
•
|
Asset retirement obligations initially measured at fair value but not subsequently measured at fair value.
|
Balance Sheet
|
|
Balance at December 31, 2017
|
|
Adjustments due to adoption of Topic 606
|
|
Balance at January 1, 2018
|
||||||
Assets
|
|
|
|
|
|
|
||||||
Other current assets
|
|
$
|
232,027
|
|
|
$
|
9,002
|
|
|
$
|
241,029
|
|
Other assets
(1)
|
|
241,750
|
|
|
179,578
|
|
|
421,328
|
|
|||
Liabilities
|
|
|
|
|
|
|
||||||
Other current liabilities
|
|
159,914
|
|
|
(16,215
|
)
|
|
143,699
|
|
|||
Other liabilities
(2)
|
|
661,710
|
|
|
(63,051
|
)
|
|
598,659
|
|
|||
Equity
|
|
|
|
|
|
|
||||||
Accumulated other comprehensive loss
(3)
|
|
(785,189
|
)
|
|
(1,930
|
)
|
|
(787,119
|
)
|
|||
Retained earnings
|
|
$
|
252,689
|
|
|
$
|
269,776
|
|
|
$
|
522,465
|
|
|
(1)
|
Includes cumulative adjustments related to cost to obtain contracts, non-current contract assets and deferred tax assets.
|
(2)
|
Includes cumulative adjustments related to non-current deferred revenue and deferred tax liabilities.
|
(3)
|
Includes cumulative adjustments related to CTA.
|
Balance Sheets
|
|
December 31, 2018
|
|
Adjustments
|
|
Balances without adoption of Topic 606
|
||||||
Accounts receivable, net
|
|
$
|
630,119
|
|
|
$
|
(2,386
|
)
|
|
$
|
627,733
|
|
Other current assets
|
|
274,857
|
|
|
(9,830
|
)
|
|
265,027
|
|
|||
Total current assets
|
|
1,515,682
|
|
|
(12,216
|
)
|
|
1,503,466
|
|
|||
Other assets
|
|
533,252
|
|
|
(192,306
|
)
|
|
340,946
|
|
|||
Total assets
|
|
$
|
20,244,638
|
|
|
$
|
(204,522
|
)
|
|
$
|
20,040,116
|
|
Current liabilities:
|
|
|
|
|
|
|
||||||
Accounts payable and accrued expenses
|
|
$
|
756,692
|
|
|
$
|
(3,203
|
)
|
|
$
|
753,489
|
|
Other current liabilities
|
|
126,995
|
|
|
17,916
|
|
|
144,911
|
|
|||
Total current liabilities
|
|
1,515,071
|
|
|
14,713
|
|
|
1,529,784
|
|
|||
Other liabilities
|
|
629,763
|
|
|
73,414
|
|
|
703,177
|
|
|||
Total liabilities
|
|
13,025,359
|
|
|
88,127
|
|
|
13,113,486
|
|
|||
Accumulated other comprehensive loss
|
|
(945,702
|
)
|
|
7,846
|
|
|
(937,856
|
)
|
|||
Retained earnings
|
|
889,948
|
|
|
(300,495
|
)
|
|
589,453
|
|
|||
Total stockholders' equity
|
|
7,219,279
|
|
|
(292,649
|
)
|
|
6,926,630
|
|
|||
Total liabilities and stockholders' equity
|
|
$
|
20,244,638
|
|
|
$
|
(204,522
|
)
|
|
$
|
20,040,116
|
|
Statements of Operations
|
|
Year Ended December 31, 2018
|
|
Adjustments
|
|
Balance without adoption of Topic 606
|
||||||
Revenues
|
|
$
|
5,071,654
|
|
|
$
|
(15,415
|
)
|
|
$
|
5,056,239
|
|
Sales and marketing
|
|
633,702
|
|
|
20,226
|
|
|
653,928
|
|
|||
Total costs and operating expenses
|
|
4,094,271
|
|
|
20,226
|
|
|
4,114,497
|
|
|||
Income from operations
|
|
977,383
|
|
|
(35,641
|
)
|
|
941,742
|
|
|||
Income from continuing operations before income taxes
|
|
433,038
|
|
|
(35,641
|
)
|
|
397,397
|
|
|||
Income tax expense
|
|
(67,679
|
)
|
|
4,922
|
|
|
(62,757
|
)
|
|||
Net income from continuing operations
|
|
365,359
|
|
|
(30,719
|
)
|
|
334,640
|
|
|||
Net income
|
|
$
|
365,359
|
|
|
$
|
(30,719
|
)
|
|
$
|
334,640
|
|
Basic EPS
|
|
$
|
4.58
|
|
|
$
|
(0.39
|
)
|
|
$
|
4.19
|
|
Diluted EPS
|
|
$
|
4.56
|
|
|
$
|
(0.39
|
)
|
|
$
|
4.17
|
|
Statements of Cash Flow
|
|
Year Ended December 31, 2018
|
|
Adjustments
|
|
Balance without adoption of Topic 606
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
365,359
|
|
|
$
|
(30,719
|
)
|
|
$
|
334,640
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||||||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
||||||
Accounts receivable
|
|
(52,931
|
)
|
|
1,413
|
|
|
(51,518
|
)
|
|||
Income taxes, net
|
|
(10,670
|
)
|
|
(1,863
|
)
|
|
(12,533
|
)
|
|||
Other assets
|
|
(47,635
|
)
|
|
18,048
|
|
|
(29,587
|
)
|
|||
Other liabilities
|
|
31,725
|
|
|
13,121
|
|
|
44,846
|
|
|||
Net cash provided by operating activities
|
|
$
|
1,815,426
|
|
|
$
|
—
|
|
|
$
|
1,815,426
|
|
Standards
|
|
Description
|
|
Effective Date and Adoption Consideration
|
ASU 2017-09 Compensation–Stock Compensation (Topic 718)
|
|
This ASU was issued primarily to provide clarity and reduce both diversity in practice and cost and complexity when applying the guidance in Topic 718 to a change to the terms or conditions of a share-based payment award. This ASU affects any entity that changes the terms or conditions of a share-based payment award. This ASU provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718.
|
|
January 1, 2018
|
|
|
|
|
|
ASU 2017-07 Compensation–Retirement Benefits (Topic 715)
|
|
This ASU was issued primarily to improve the presentation of net periodic pension cost and net periodic post-retirement benefit cost. This ASU requires that an employer reports the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. It also requires the other components of net periodic pension cost and net periodic post-retirement benefit cost to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. Additionally, only the service cost component is eligible for capitalization, when applicable.
|
|
January 1, 2018
|
|
|
|
|
|
ASU 2017-05 Other Income—Gains and Losses from the Derecognition of Non-Financial Assets (Subtopic 610-20)
|
|
This ASU is to clarify the scope of the non-financial asset guidance in Subtopic 610-20 and to add guidance for partial sales of non-financial assets. This ASU defines the term in substance non-financial asset and clarifies that non-financial assets within the scope of Subtopic 610-20 may include non-financial assets transferred within a legal entity to a counterparty. The ASU also provides guidance on the accounting for what often are referred to as partial sales of non-financial assets within the scope of Subtopic 610-20 and contributions of non-financial assets to a joint venture or other non-controlled investee.
|
|
January 1, 2018
|
|
|
|
|
|
ASU 2017-04 Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.
|
|
This ASU is to simplify the subsequent measurement of goodwill. The ASU eliminates step 2 from the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary.
|
|
The Company elected to early adopt this ASU on a prospective basis, effective January 1, 2018.
|
|
|
|
|
|
ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business
|
|
This ASU provides new guidance to assist entities with evaluating when a set of transferred assets and activities is a business. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill and consolidation.
|
|
The Company adopted this standard on a prospective basis, effective January 1, 2018. The adoption of this standard may impact the accounting of future transactions.
|
|
|
|
|
|
ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory
|
|
This ASU requires the recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs.
|
|
January 1, 2018
|
|
|
|
|
|
ASU 2016-01 Financial Instruments- Overall (Subtopic 825-10)
|
|
This ASU requires all equity investments to be measured at fair value with changes in the fair value recognized through net income other than those accounted for under equity method of accounting or those that result in consolidation of the investees. The ASU also requires that an entity present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments.
|
|
The Company adopted this standard using the modified retrospective method, effective January 1, 2018 and recorded a net increase to retained earnings of $2.1 million.
|
2.
|
Revenue Recognition
|
|
Accounts receivable, net
|
|
Contract asset, current
|
|
Contract asset, non-current
|
|
Deferred revenue, current
|
|
Deferred revenue, non-current
|
||||||||||
Beginning balances as of January 1, 2018
(1)
|
$
|
576,313
|
|
|
$
|
9,002
|
|
|
$
|
16,186
|
|
|
$
|
71,085
|
|
|
$
|
53,101
|
|
Closing balances as of December 31, 2018
|
630,119
|
|
|
9,778
|
|
|
16,396
|
|
|
73,142
|
|
|
46,641
|
|
|||||
Increase/(decrease)
|
$
|
53,806
|
|
|
$
|
776
|
|
|
$
|
210
|
|
|
$
|
2,057
|
|
|
$
|
(6,460
|
)
|
|
(1)
|
Includes cumulative adjustments made to these accounts on January 1, 2018 from the adoption of Topic 606.
|
3.
|
Acquisitions
|
|
Metronode
|
|
Infomart Dallas
|
||||
Cash and cash equivalents
|
$
|
3,206
|
|
|
$
|
17,432
|
|
Accounts receivable
|
8,318
|
|
|
637
|
|
||
Other current assets
|
9,894
|
|
|
395
|
|
||
Property, plant and equipment
|
297,092
|
|
|
362,023
|
|
||
Intangible assets
|
128,229
|
|
|
65,847
|
|
||
Goodwill
|
413,871
|
|
|
197,378
|
|
||
Other assets
(1)
|
44,373
|
|
|
—
|
|
||
Total assets acquired
|
904,983
|
|
|
643,712
|
|
||
Accounts payable and accrued liabilities
|
(17,104
|
)
|
|
(5,056
|
)
|
||
Other current liabilities
|
(2,038
|
)
|
|
(2,141
|
)
|
||
Deferred tax liabilities
|
(35,437
|
)
|
|
—
|
|
||
Other liabilities
(1)
|
(45,851
|
)
|
|
(4,723
|
)
|
||
Net assets acquired
|
$
|
804,553
|
|
|
$
|
631,792
|
|
|
(1)
|
In connection with the Metronode Acquisition, the Company recorded indemnification assets of
$44.4 million
, which represented the seller's obligation under the purchase agreement to reimburse pre-acquisition tax liabilities settled after the acquisition.
|
Intangible Assets
|
|
Fair Value
|
|
Estimated Useful Lives (Years)
|
|
Weighted-average Estimated Useful Lives (Years)
|
||
Customer relationships (Metronode)
|
|
$
|
128,229
|
|
|
20.0
|
|
20.0
|
Customer relationships (Infomart Dallas)
|
|
35,860
|
|
|
20.0
|
|
20.0
|
|
In-place leases (Infomart Dallas)
|
|
19,960
|
|
|
3.6 - 7.5
|
|
6.8
|
|
Trade names (Infomart Dallas)
|
|
9,552
|
|
|
20.0
|
|
20.0
|
|
Favorable leases (Infomart Dallas)
|
|
475
|
|
|
3.6 - 7.5
|
|
7.0
|
|
Certain Verizon Data Center Assets
|
||
Cash and cash equivalents
|
$
|
1,073
|
|
Accounts receivable
|
2,019
|
|
|
Other current assets
|
7,319
|
|
|
Property, plant and equipment
|
840,335
|
|
|
Intangible assets
(1)
|
1,693,900
|
|
|
Goodwill
|
1,095,262
|
|
|
Total assets acquired
|
3,639,908
|
|
|
Accounts payable and accrued liabilities
|
(1,725
|
)
|
|
Other current liabilities
|
(2,020
|
)
|
|
Capital lease and other financing obligations
|
(17,659
|
)
|
|
Deferred tax liabilities
|
(18,129
|
)
|
|
Other liabilities
|
(5,689
|
)
|
|
Net assets acquired
|
$
|
3,594,686
|
|
|
(1)
|
The nature of the intangible assets acquired is customer relationships with an estimated useful life of
15
years. Included in this amount is a customer relationship intangible asset for Verizon totaling
$245.3 million
. Pursuant to the acquisition agreement, the Company formalized agreements to provide pre-existing space and services to Verizon at the acquired data centers.
|
|
Itconic
|
|
Zenium
data center
|
|
IO UK's
data center |
||||||
Cash and cash equivalents
|
$
|
15,659
|
|
|
$
|
692
|
|
|
$
|
1,388
|
|
Accounts receivable
|
16,429
|
|
|
198
|
|
|
7
|
|
|||
Other current assets
|
1,885
|
|
|
6,430
|
|
|
1,082
|
|
|||
Property, plant and equipment
|
64,499
|
|
|
58,931
|
|
|
40,251
|
|
|||
Intangible assets
|
101,755
|
|
|
7,900
|
|
|
6,252
|
|
|||
Goodwill
|
127,711
|
|
|
21,834
|
|
|
15,804
|
|
|||
Deferred tax assets
|
—
|
|
|
—
|
|
|
6,714
|
|
|||
Other assets
|
4,025
|
|
|
313
|
|
|
3,396
|
|
|||
Total assets acquired
|
331,963
|
|
|
96,298
|
|
|
74,894
|
|
|||
Accounts payable and accrued liabilities
|
(15,846
|
)
|
|
(1,012
|
)
|
|
(439
|
)
|
|||
Other current liabilities
|
(12,374
|
)
|
|
(451
|
)
|
|
(168
|
)
|
|||
Capital lease and other financing obligations
|
(30,666
|
)
|
|
—
|
|
|
(33,091
|
)
|
|||
Loans payable
|
(3,253
|
)
|
|
—
|
|
|
(4,067
|
)
|
|||
Deferred tax liabilities
|
(3,198
|
)
|
|
(2,227
|
)
|
|
—
|
|
|||
Other liabilities
|
(7,515
|
)
|
|
(614
|
)
|
|
(828
|
)
|
|||
Net assets acquired
|
$
|
259,111
|
|
|
$
|
91,994
|
|
|
$
|
36,301
|
|
|
2017
|
|
2016
|
||||
Revenues
|
$
|
4,509,602
|
|
|
$
|
4,053,280
|
|
Net income from continuing operations
|
258,618
|
|
|
19,248
|
|
||
Basic EPS
|
3.31
|
|
|
0.25
|
|
||
Diluted EPS
|
3.28
|
|
|
0.25
|
|
4.
|
Earnings Per Share
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net income from continuing operations
|
$
|
365,359
|
|
|
$
|
232,982
|
|
|
$
|
114,408
|
|
Net income from discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
12,392
|
|
|||
Net income
|
$
|
365,359
|
|
|
$
|
232,982
|
|
|
$
|
126,800
|
|
|
|
|
|
|
|
||||||
Weighted-average shares used to calculate basic EPS
|
79,779
|
|
|
76,854
|
|
|
70,117
|
|
|||
Effect of dilutive securities:
|
|
|
|
|
|
||||||
Employee equity awards
|
418
|
|
|
681
|
|
|
699
|
|
|||
Weighted-average shares used to calculate diluted EPS
|
80,197
|
|
|
77,535
|
|
|
70,816
|
|
|||
|
|
|
|
|
|
||||||
Basic EPS:
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
4.58
|
|
|
$
|
3.03
|
|
|
$
|
1.63
|
|
Discontinued operations
|
—
|
|
|
—
|
|
|
0.18
|
|
|||
Basic EPS
|
$
|
4.58
|
|
|
$
|
3.03
|
|
|
$
|
1.81
|
|
|
|
|
|
|
|
||||||
Diluted EPS:
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
4.56
|
|
|
$
|
3.00
|
|
|
$
|
1.62
|
|
Discontinued operations
|
—
|
|
|
—
|
|
|
0.17
|
|
|||
Diluted EPS
|
$
|
4.56
|
|
|
$
|
3.00
|
|
|
$
|
1.79
|
|
|
2018
|
|
2017
|
|
2016
|
|||
Shares related to the potential conversion of 4.75% convertible subordinated notes
|
—
|
|
|
—
|
|
|
893
|
|
Common stock related to employee equity awards
|
265
|
|
|
63
|
|
|
27
|
|
|
265
|
|
|
63
|
|
|
920
|
|
5.
|
Assets Held for Sale
|
6.
|
Discontinued Operations
|
|
2016
|
||
Revenues
|
$
|
48,782
|
|
Costs and operating expenses:
|
|
||
Cost of revenues
|
24,795
|
|
|
Sales and marketing
|
1,030
|
|
|
General and administrative
|
7,026
|
|
|
Total costs and operating expenses
|
32,851
|
|
|
Income from operations of discontinued operations
|
15,931
|
|
|
Interest expense and other, net
|
(1,286
|
)
|
|
Income from discontinued operations before income taxes
|
14,645
|
|
|
Income tax expense
|
(4,604
|
)
|
|
Gain on sale of discontinued operations, net of tax
|
2,351
|
|
|
Net income from discontinued operations, net of tax
|
$
|
12,392
|
|
7.
|
Balance Sheet Components
|
|
2018
|
|
2017
|
||||
Cash and cash equivalents:
|
|
|
|
||||
Cash
(1)
|
$
|
486,648
|
|
|
$
|
985,382
|
|
Cash equivalents:
|
|
|
|
||||
Money market funds
|
119,518
|
|
|
427,135
|
|
||
Total cash and cash equivalents
|
606,166
|
|
|
1,412,517
|
|
||
Short-term and long-term investments:
|
|
|
|
||||
Certificates of deposit
|
2,823
|
|
|
31,351
|
|
||
Publicly traded equity securities
|
1,717
|
|
|
6,163
|
|
||
Total short-term and long-term investments
|
4,540
|
|
|
37,514
|
|
||
Total cash, cash equivalents and short-term and long-term investments
|
$
|
610,706
|
|
|
$
|
1,450,031
|
|
|
(1)
|
Excludes restricted cash.
|
(2)
|
Total unrealized gains on the publicly traded equity securities as of December 31, 2017 were insignificant. The changes in the fair values of publicly traded equity securities were recognized within other income (expense) in the Company's consolidated statements of operations as a result of the adoption of ASU 2016-01 on January 1, 2018.
|
|
2018
|
|
2017
|
||||
Due within one year
|
$
|
2,823
|
|
|
$
|
28,271
|
|
Due after one year through three years
|
—
|
|
|
3,080
|
|
||
Total
|
$
|
2,823
|
|
|
$
|
31,351
|
|
|
2018
|
|
2017
|
||||
Accounts receivable
|
$
|
646,069
|
|
|
$
|
594,541
|
|
Allowance for doubtful accounts
|
(15,950
|
)
|
|
(18,228
|
)
|
||
Accounts receivable, net
|
$
|
630,119
|
|
|
$
|
576,313
|
|
Balance as of December 31, 2015
|
$
|
10,352
|
|
Provision for allowance for doubtful accounts
|
8,260
|
|
|
Net write-offs
|
(2,521
|
)
|
|
Impact of foreign currency exchange
|
(416
|
)
|
|
Balance as of December 31, 2016
|
15,675
|
|
|
Provision for allowance for doubtful accounts
|
5,627
|
|
|
Net write-offs
|
(4,546
|
)
|
|
Impact of foreign currency exchange
|
1,472
|
|
|
Balance as of December 31, 2017
|
18,228
|
|
|
Provision for allowance for doubtful accounts
|
7,236
|
|
|
Net write-offs
|
(8,396
|
)
|
|
Impact of foreign currency exchange
|
(1,118
|
)
|
|
Balance as of December 31, 2018
|
$
|
15,950
|
|
|
2018
|
|
2017
|
||||
Prepaid expenses
|
$
|
70,433
|
|
|
$
|
64,832
|
|
Taxes receivable
|
98,245
|
|
|
110,961
|
|
||
Restricted cash, current
|
10,887
|
|
|
26,919
|
|
||
Other receivables
|
12,611
|
|
|
7,797
|
|
||
Derivative instruments
|
62,170
|
|
|
4,175
|
|
||
Contract asset, current
|
9,778
|
|
|
—
|
|
||
Other current assets
|
10,733
|
|
|
17,343
|
|
||
Total other current assets
|
$
|
274,857
|
|
|
$
|
232,027
|
|
|
2018
|
|
2017
|
||||
Core systems
|
$
|
7,073,912
|
|
|
$
|
6,334,702
|
|
Buildings
|
4,822,501
|
|
|
3,906,686
|
|
||
Leasehold improvements
|
1,637,133
|
|
|
1,850,351
|
|
||
Construction in progress
|
974,152
|
|
|
425,428
|
|
||
Personal property
|
857,585
|
|
|
798,133
|
|
||
Land
|
631,367
|
|
|
423,539
|
|
||
|
15,996,650
|
|
|
13,738,839
|
|
||
Less accumulated depreciation
|
(4,970,630
|
)
|
|
(4,344,237
|
)
|
||
Property, plant and equipment, net
|
$
|
11,026,020
|
|
|
$
|
9,394,602
|
|
|
2018
|
|
2017
|
||||
Goodwill:
|
|
|
|
||||
Americas
|
$
|
1,745,804
|
|
|
$
|
1,561,512
|
|
EMEA
|
2,474,164
|
|
|
2,610,899
|
|
||
Asia-Pacific
|
616,420
|
|
|
239,351
|
|
||
|
$
|
4,836,388
|
|
|
$
|
4,411,762
|
|
Intangible assets, net:
|
|
|
|
||||
Intangible assets - customer relationships
|
$
|
2,733,864
|
|
|
$
|
2,673,886
|
|
Intangible assets - trade names
|
71,778
|
|
|
73,295
|
|
||
Intangible assets - favorable leases
|
35,969
|
|
|
37,913
|
|
||
Intangible assets - in-place leases
|
33,671
|
|
|
10,327
|
|
||
Intangible assets - licenses
|
9,697
|
|
|
9,696
|
|
||
|
2,884,979
|
|
|
2,805,117
|
|
||
Accumulated amortization - customer relationships
|
(467,111
|
)
|
|
(331,930
|
)
|
||
Accumulated amortization - trade names
|
(62,585
|
)
|
|
(71,728
|
)
|
||
Accumulated amortization - favorable leases
|
(9,986
|
)
|
|
(9,607
|
)
|
||
Accumulated amortization - in-place leases
|
(8,118
|
)
|
|
(3,644
|
)
|
||
Accumulated amortization - licenses
|
(3,883
|
)
|
|
(3,236
|
)
|
||
|
(551,683
|
)
|
|
(420,145
|
)
|
||
Total intangible assets, net
|
$
|
2,333,296
|
|
|
$
|
2,384,972
|
|
|
Americas
|
|
EMEA
|
|
Asia-Pacific
|
|
Total
|
||||||||
Balance as of December 31, 2016
|
$
|
469,438
|
|
|
$
|
2,281,306
|
|
|
$
|
235,320
|
|
|
$
|
2,986,064
|
|
Purchase accounting adjustments - Verizon Data Center acquisition
|
1,095,262
|
|
|
—
|
|
|
—
|
|
|
1,095,262
|
|
||||
Purchase accounting adjustments - Other 2017 acquisitions
|
—
|
|
|
163,993
|
|
|
—
|
|
|
163,993
|
|
||||
Impact of foreign currency exchange
|
(3,188
|
)
|
|
165,600
|
|
|
4,031
|
|
|
166,443
|
|
||||
Balance as of December 31, 2017
|
1,561,512
|
|
|
2,610,899
|
|
|
239,351
|
|
|
4,411,762
|
|
||||
Purchase accounting adjustments - Infomart Dallas acquisition
|
197,378
|
|
|
—
|
|
|
—
|
|
|
197,378
|
|
||||
Purchase accounting adjustments - Metronode acquisition
|
—
|
|
|
—
|
|
|
413,871
|
|
|
413,871
|
|
||||
Purchase accounting adjustments - Other acquisitions
|
333
|
|
|
1,357
|
|
|
—
|
|
|
1,690
|
|
||||
Impact of foreign currency exchange
|
(13,419
|
)
|
|
(138,092
|
)
|
|
(36,802
|
)
|
|
(188,313
|
)
|
||||
Balance as of December 31, 2018
|
$
|
1,745,804
|
|
|
$
|
2,474,164
|
|
|
$
|
616,420
|
|
|
$
|
4,836,388
|
|
|
Americas
|
|
EMEA
|
|
Asia-Pacific
|
|
Total
|
||||||||
Balance as of December 31, 2015
|
$
|
50,643
|
|
|
$
|
44,355
|
|
|
$
|
129,567
|
|
|
$
|
224,565
|
|
TelecityGroup acquisition
|
—
|
|
|
694,243
|
|
|
—
|
|
|
694,243
|
|
||||
Paris IBX Data Center acquisition
|
—
|
|
|
11,758
|
|
|
—
|
|
|
11,758
|
|
||||
Sale of Terra Power
|
—
|
|
|
—
|
|
|
(2,460
|
)
|
|
(2,460
|
)
|
||||
Write-off of intangible asset
|
(573
|
)
|
|
—
|
|
|
—
|
|
|
(573
|
)
|
||||
Amortization of intangibles
|
(11,348
|
)
|
|
(97,715
|
)
|
|
(13,799
|
)
|
|
(122,862
|
)
|
||||
Impact of foreign currency exchange
|
1,395
|
|
|
(90,280
|
)
|
|
3,445
|
|
|
(85,440
|
)
|
||||
Balance as of December 31, 2016
|
40,117
|
|
|
562,361
|
|
|
116,753
|
|
|
719,231
|
|
||||
Verizon Data Center acquisition
|
1,693,900
|
|
|
—
|
|
|
—
|
|
|
1,693,900
|
|
||||
Other 2017 acquisitions
|
—
|
|
|
112,645
|
|
|
—
|
|
|
112,645
|
|
||||
Write-off of intangible asset
|
—
|
|
|
(725
|
)
|
|
—
|
|
|
(725
|
)
|
||||
Amortization of intangibles
|
(84,749
|
)
|
|
(79,105
|
)
|
|
(13,154
|
)
|
|
(177,008
|
)
|
||||
Impact of foreign currency exchange
|
(2,895
|
)
|
|
36,043
|
|
|
3,781
|
|
|
36,929
|
|
||||
Balance as of December 31, 2017
|
1,646,373
|
|
|
631,219
|
|
|
107,380
|
|
|
2,384,972
|
|
||||
Infomart Dallas acquisition
|
65,847
|
|
|
—
|
|
|
—
|
|
|
65,847
|
|
||||
Metronode acquisition
|
—
|
|
|
—
|
|
|
128,229
|
|
|
128,229
|
|
||||
Other acquisitions
|
—
|
|
|
8,342
|
|
|
—
|
|
|
8,342
|
|
||||
Write-off of intangible asset
|
(334
|
)
|
|
(1,661
|
)
|
|
(3
|
)
|
|
(1,998
|
)
|
||||
Amortization of intangibles
|
(125,683
|
)
|
|
(62,283
|
)
|
|
(15,450
|
)
|
|
(203,416
|
)
|
||||
Impact of foreign currency exchange
|
(7,232
|
)
|
|
(31,757
|
)
|
|
(9,691
|
)
|
|
(48,680
|
)
|
||||
Balance as of December 31, 2018
|
$
|
1,578,971
|
|
|
$
|
543,860
|
|
|
$
|
210,465
|
|
|
$
|
2,333,296
|
|
|
2018
|
|
2017
|
||||
Deferred tax assets, net
|
$
|
58,300
|
|
|
$
|
66,031
|
|
Prepaid expenses
|
125,158
|
|
|
89,784
|
|
||
Debt issuance costs, net
|
8,532
|
|
|
10,670
|
|
||
Deposits
|
54,986
|
|
|
48,296
|
|
||
Restricted cash
|
10,551
|
|
|
11,265
|
|
||
Derivative instruments
|
10,904
|
|
|
4,110
|
|
||
Contract assets, non-current
|
16,396
|
|
|
—
|
|
||
Contract costs
|
188,200
|
|
|
—
|
|
||
Other assets
|
60,225
|
|
|
11,594
|
|
||
Total other assets
|
$
|
533,252
|
|
|
$
|
241,750
|
|
|
2018
|
|
2017
|
||||
Accounts payable
|
$
|
96,980
|
|
|
$
|
101,744
|
|
Accrued compensation and benefits
|
235,697
|
|
|
214,585
|
|
||
Accrued interest
|
126,142
|
|
|
100,347
|
|
||
Accrued taxes
(1)
|
118,818
|
|
|
130,272
|
|
||
Accrued utilities and security
|
78,547
|
|
|
68,916
|
|
||
Accrued professional fees
|
17,010
|
|
|
13,830
|
|
||
Accrued repairs and maintenance
|
10,736
|
|
|
11,232
|
|
||
Accrued other
|
72,762
|
|
|
78,331
|
|
||
Total accounts payable and accrued expenses
|
$
|
756,692
|
|
|
$
|
719,257
|
|
|
(1)
|
Includes income taxes payable of
$67.9 million
and
$56.4 million
, respectively, as of
December 31, 2018
and
2017
.
|
|
2018
|
|
2017
|
||||
Deferred revenue, current
|
$
|
73,143
|
|
|
$
|
87,300
|
|
Customer deposits
|
20,430
|
|
|
16,598
|
|
||
Derivative instruments
|
8,812
|
|
|
34,466
|
|
||
Deferred rent
|
6,466
|
|
|
6,546
|
|
||
Dividends payable
|
8,795
|
|
|
11,181
|
|
||
Asset retirement obligations
|
6,776
|
|
|
1,716
|
|
||
Other current liabilities
|
2,573
|
|
|
2,107
|
|
||
Total other current liabilities
|
$
|
126,995
|
|
|
$
|
159,914
|
|
|
2018
|
|
2017
|
||||
Asset retirement obligations
|
$
|
89,887
|
|
|
$
|
96,823
|
|
Deferred tax liabilities, net
|
247,849
|
|
|
252,287
|
|
||
Deferred revenue, non-current
|
46,641
|
|
|
121,257
|
|
||
Deferred rent
|
108,693
|
|
|
97,782
|
|
||
Accrued taxes
|
116,735
|
|
|
64,378
|
|
||
Dividends payable
|
6,545
|
|
|
6,669
|
|
||
Customer deposits
|
9,671
|
|
|
10,849
|
|
||
Derivative instruments
|
928
|
|
|
6,381
|
|
||
Other liabilities
|
2,814
|
|
|
5,284
|
|
||
Total other liabilities
|
$
|
629,763
|
|
|
$
|
661,710
|
|
Asset retirement obligations as of December 31, 2015
|
$
|
78,482
|
|
Additions
|
22,955
|
|
|
Adjustments
(1)
|
(2,366
|
)
|
|
Accretion expense
|
6,685
|
|
|
Impact of foreign currency exchange
|
(2,741
|
)
|
|
Asset retirement obligations as of December 31, 2016
|
103,015
|
|
|
Additions
|
17,736
|
|
|
Adjustments
(1)
|
(34,576
|
)
|
|
Accretion expense
|
7,335
|
|
|
Impact of foreign currency exchange
|
5,029
|
|
|
Asset retirement obligations as of December 31, 2017
|
98,539
|
|
|
Additions
|
5,126
|
|
|
Adjustments
(1)
|
(11,288
|
)
|
|
Accretion expense
|
6,285
|
|
|
Impact of foreign currency exchange
|
(1,999
|
)
|
|
Asset retirement obligations as of December 31, 2018
|
$
|
96,663
|
|
|
(1)
|
The
ARO adjustments are primarily due to lease amendments and acquisition of real estate assets, as well as other adjustments.
|
8.
|
Derivatives and Hedging Instruments
|
|
Notional Amount
|
|
Fair Value
(1)
|
|
Accumulated Other Comprehensive Income (Loss)
(2)(3)
|
||||||
Derivative assets
|
$
|
642,542
|
|
|
$
|
38,606
|
|
|
$
|
27,968
|
|
Derivative liabilities
|
118,324
|
|
|
(865
|
)
|
|
(1,997
|
)
|
|||
|
$
|
760,866
|
|
|
$
|
37,741
|
|
|
$
|
25,971
|
|
|
(1)
|
All derivative assets related to cash flow hedges are included in the consolidated balance sheets within other current assets, other assets, other current liabilities and other liabilities.
|
(2)
|
Included in the consolidated balance sheets within accumulated other comprehensive income (loss).
|
(3)
|
The Company recorded a net gain of
$21.4 million
within accumulated other comprehensive income (loss) relating to cash flow hedges that will be reclassified to revenue and expenses as they mature over the next 12 months.
|
|
Notional Amount
|
|
Fair Value
(1)
|
|
Accumulated Other Comprehensive Income (Loss)
(2)(3)
|
||||||
Derivative assets
|
$
|
72,262
|
|
|
$
|
2,379
|
|
|
$
|
2,055
|
|
Derivative liabilities
|
440,637
|
|
|
(29,777
|
)
|
|
(34,311
|
)
|
|||
|
$
|
512,899
|
|
|
$
|
(27,398
|
)
|
|
$
|
(32,256
|
)
|
|
(1)
|
All derivative assets related to cash flow hedges are included in the consolidated balance sheets within other current assets, other assets, other current liabilities and other liabilities.
|
(2)
|
Included in the consolidated balance sheets within accumulated other comprehensive income (loss).
|
(3)
|
The Company recorded a net loss of
$26.7 million
within accumulated other comprehensive income (loss) relating to cash flow hedges that will be reclassified to revenue and expenses as they mature over the next 12 months.
|
|
Gross Amounts
|
|
Gross Amounts Offset in the Consolidated Balance Sheet
|
|
Net Consolidated Balance Sheet Amounts
(1)
|
|
Gross Amounts not Offset in the Consolidated Balance Sheet
(2)
|
|
Net
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency forward contracts designated as cash flow hedges
|
$
|
38,606
|
|
|
$
|
—
|
|
|
$
|
38,606
|
|
|
$
|
(865
|
)
|
|
$
|
37,741
|
|
Not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Embedded derivatives
|
4,656
|
|
|
—
|
|
|
4,656
|
|
|
—
|
|
|
4,656
|
|
|||||
Economic hedges of embedded derivatives
|
525
|
|
|
—
|
|
|
525
|
|
|
(104
|
)
|
|
421
|
|
|||||
Foreign currency forward contracts
|
29,287
|
|
|
—
|
|
|
29,287
|
|
|
(2,941
|
)
|
|
26,346
|
|
|||||
|
34,468
|
|
|
—
|
|
|
34,468
|
|
|
(3,045
|
)
|
|
31,423
|
|
|||||
Additional netting benefit
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,607
|
)
|
|
(2,607
|
)
|
|||||
|
$
|
73,074
|
|
|
$
|
—
|
|
|
$
|
73,074
|
|
|
$
|
(6,517
|
)
|
|
$
|
66,557
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency forward contracts designated as cash flow hedges
|
$
|
865
|
|
|
$
|
—
|
|
|
$
|
865
|
|
|
$
|
(865
|
)
|
|
$
|
—
|
|
Not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Embedded derivatives
|
2,426
|
|
|
—
|
|
|
2,426
|
|
|
—
|
|
|
2,426
|
|
|||||
Economic hedges of embedded derivatives
|
180
|
|
|
—
|
|
|
180
|
|
|
(104
|
)
|
|
76
|
|
|||||
Foreign currency forward contracts
|
6,269
|
|
|
—
|
|
|
6,269
|
|
|
(2,941
|
)
|
|
3,328
|
|
|||||
|
8,875
|
|
|
—
|
|
|
8,875
|
|
|
(3,045
|
)
|
|
5,830
|
|
|||||
Additional netting benefit
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,607
|
)
|
|
(2,607
|
)
|
|||||
|
$
|
9,740
|
|
|
$
|
—
|
|
|
$
|
9,740
|
|
|
$
|
(6,517
|
)
|
|
$
|
3,223
|
|
|
(1)
|
As presented in the Company's consolidated balance sheets within other current assets, other assets, other current liabilities and other liabilities.
|
(2)
|
The Company enters into master netting agreements with its counterparties for transactions other than embedded derivatives to mitigate credit risk exposure to any single counterparty. Master netting agreements allow for individual derivative contracts with a single counterparty to offset in the event of default. For presentation on the consolidated balance sheets, the Company elects not to offset fair value amounts recognized for derivative instruments under master netting arrangements.
|
|
Gross Amounts
|
|
Gross Amounts Offset in the Consolidated Balance Sheet
|
|
Net Consolidated Balance Sheet Amounts
(1)
|
|
Gross Amounts not Offset in the Consolidated Balance Sheet
(2)
|
|
Net
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency forward contracts designated as cash flow hedges
|
$
|
2,379
|
|
|
$
|
—
|
|
|
$
|
2,379
|
|
|
$
|
(2,379
|
)
|
|
$
|
—
|
|
Not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Embedded derivatives
|
5,076
|
|
|
—
|
|
|
5,076
|
|
|
—
|
|
|
5,076
|
|
|||||
Economic hedges of embedded derivatives
|
325
|
|
|
—
|
|
|
325
|
|
|
—
|
|
|
325
|
|
|||||
Foreign currency forward contracts
|
505
|
|
|
—
|
|
|
505
|
|
|
(340
|
)
|
|
165
|
|
|||||
|
5,906
|
|
|
—
|
|
|
5,906
|
|
|
(340
|
)
|
|
5,566
|
|
|||||
Additional netting benefit
|
—
|
|
|
—
|
|
|
—
|
|
|
(490
|
)
|
|
(490
|
)
|
|||||
|
$
|
8,285
|
|
|
$
|
—
|
|
|
$
|
8,285
|
|
|
$
|
(3,209
|
)
|
|
$
|
5,076
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency forward contracts designated as cash flow hedges
|
$
|
29,777
|
|
|
$
|
—
|
|
|
$
|
29,777
|
|
|
$
|
(2,379
|
)
|
|
$
|
27,398
|
|
Not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Embedded derivatives
|
3,503
|
|
|
—
|
|
|
3,503
|
|
|
—
|
|
|
3,503
|
|
|||||
Economic hedges of embedded derivatives
|
20
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
20
|
|
|||||
Foreign currency forward contracts
|
7,547
|
|
|
—
|
|
|
7,547
|
|
|
(340
|
)
|
|
7,207
|
|
|||||
|
11,070
|
|
|
—
|
|
|
11,070
|
|
|
(340
|
)
|
|
10,730
|
|
|||||
Additional netting benefit
|
—
|
|
|
—
|
|
|
—
|
|
|
(490
|
)
|
|
(490
|
)
|
|||||
|
$
|
40,847
|
|
|
$
|
—
|
|
|
$
|
40,847
|
|
|
$
|
(3,209
|
)
|
|
$
|
37,638
|
|
|
(1)
|
As presented in the Company's consolidated balance sheets within other current assets, other assets, other current liabilities and other liabilities.
|
(2)
|
The Company enters into master netting agreements with its counterparties for transactions other than embedded derivatives to mitigate credit risk exposure to any single counterparty. Master netting agreements allow for individual derivative contracts with a single counterparty to offset in the event of default. For presentation on the consolidated balance sheets, the Company elects not to offset fair value amounts recognized for derivative instruments under master netting arrangements.
|
9.
|
Fair Value Measurements
|
|
Fair Value at
December 31,
|
|
Fair Value
Measurement Using
|
||||||||
|
2018
|
|
Level 1
|
|
Level 2
|
||||||
Assets:
|
|
|
|
|
|
||||||
Cash
|
$
|
486,648
|
|
|
$
|
486,648
|
|
|
$
|
—
|
|
Money market and deposit accounts
|
119,518
|
|
|
119,518
|
|
|
—
|
|
|||
Publicly traded equity securities
|
1,717
|
|
|
1,717
|
|
|
—
|
|
|||
Certificates of deposit
|
2,823
|
|
|
—
|
|
|
2,823
|
|
|||
Derivative instruments
(1)
|
73,074
|
|
|
—
|
|
|
73,074
|
|
|||
|
$
|
683,780
|
|
|
$
|
607,883
|
|
|
$
|
75,897
|
|
Liabilities:
|
|
|
|
|
|
||||||
Derivative instruments
(1)
|
$
|
9,740
|
|
|
$
|
—
|
|
|
$
|
9,740
|
|
|
(1)
|
Includes both foreign currency embedded derivatives and foreign currency forward contracts. Amounts are included within other current assets, other assets, other current liabilities and other liabilities in the Company's consolidated balance sheet.
|
|
Fair Value at
December 31,
|
|
Fair Value
Measurement Using
|
||||||||
|
2017
|
|
Level 1
|
|
Level 2
|
||||||
Assets:
|
|
|
|
|
|
||||||
Cash
|
$
|
985,382
|
|
|
$
|
985,382
|
|
|
$
|
—
|
|
Money market and deposit accounts
|
427,135
|
|
|
427,135
|
|
|
—
|
|
|||
Publicly traded equity securities
|
6,163
|
|
|
6,163
|
|
|
—
|
|
|||
Certificates of deposit
|
31,351
|
|
|
—
|
|
|
31,351
|
|
|||
Derivative instruments
(1)
|
8,285
|
|
|
—
|
|
|
8,285
|
|
|||
|
$
|
1,458,316
|
|
|
$
|
1,418,680
|
|
|
$
|
39,636
|
|
Liabilities:
|
|
|
|
|
|
||||||
Derivative instruments
(1)
|
$
|
40,847
|
|
|
$
|
—
|
|
|
$
|
40,847
|
|
|
(1)
|
Includes both foreign currency embedded derivatives and foreign currency forward contracts. Amounts are included within other current assets, other assets, other current liabilities and other liabilities in the Company's consolidated balance sheet.
|
10.
|
Leases
|
|
Capital Lease Obligations
|
|
Other Financing Obligations
(1)
|
|
Total
|
||||||
2019
|
$
|
103,859
|
|
|
$
|
80,292
|
|
|
$
|
184,151
|
|
2020
|
97,326
|
|
|
73,266
|
|
|
170,592
|
|
|||
2021
|
95,414
|
|
|
73,672
|
|
|
169,086
|
|
|||
2022
|
94,954
|
|
|
73,856
|
|
|
168,810
|
|
|||
2023
|
95,463
|
|
|
69,423
|
|
|
164,886
|
|
|||
Thereafter
|
878,755
|
|
|
722,496
|
|
|
1,601,251
|
|
|||
Total minimum lease payments
|
1,365,771
|
|
|
1,093,005
|
|
|
2,458,776
|
|
|||
Plus amount representing residual property value
|
—
|
|
|
389,643
|
|
|
389,643
|
|
|||
Less amount representing interest
|
(602,026
|
)
|
|
(727,472
|
)
|
|
(1,329,498
|
)
|
|||
Present value of net minimum lease payments
|
763,745
|
|
|
755,176
|
|
|
1,518,921
|
|
|||
Less current portion
|
(43,498
|
)
|
|
(34,346
|
)
|
|
(77,844
|
)
|
|||
Total
|
$
|
720,247
|
|
|
$
|
720,830
|
|
|
$
|
1,441,077
|
|
|
(1)
|
Other financing obligations are primarily related to build-to-suit arrangements.
|
11.
|
Debt Facilities
|
|
2018
|
|
2017
|
||||
Term loans
|
$
|
1,344,482
|
|
|
$
|
1,417,352
|
|
Mortgage payable and other loans payable
|
44,042
|
|
|
48,872
|
|
||
|
1,388,524
|
|
|
1,466,224
|
|
||
Less the amount representing unamortized debt discount and debt issuance cost
|
(6,614
|
)
|
|
(10,666
|
)
|
||
Add the amount representing unamortized mortgage premium
|
1,882
|
|
|
2,051
|
|
||
|
1,383,792
|
|
|
1,457,609
|
|
||
Less current portion
|
(73,129
|
)
|
|
(64,491
|
)
|
||
|
$
|
1,310,663
|
|
|
$
|
1,393,118
|
|
|
2016
|
||
Contractual interest expense
|
$
|
3,267
|
|
Amortization of debt issuance costs
|
186
|
|
|
Amortization of debt discount
|
3,775
|
|
|
|
$
|
7,228
|
|
Effective interest rate of the liability component
|
10.48
|
%
|
|
|
|
|
|
|
2018
|
|
2017
|
||||||||||
Senior Notes
|
|
Issuance Date
|
|
Maturity Date
|
|
Amount
|
|
Effective Rate
|
|
Amount
|
|
Effective Rate
|
||||||
5.000% Infomart Senior Notes
|
|
April 2018
|
|
April 2019 - April 2021
|
|
$
|
750,000
|
|
|
4.40
|
%
|
|
$
|
—
|
|
|
—
|
%
|
5.375% Senior Notes due 2022
|
|
November 2014
|
|
January 2022
|
|
750,000
|
|
|
5.56
|
%
|
|
750,000
|
|
|
5.56
|
%
|
||
5.375% Senior Notes due 2023
|
|
March 2013
|
|
April 2023
|
|
1,000,000
|
|
|
5.51
|
%
|
|
1,000,000
|
|
|
5.51
|
%
|
||
2.875% Euro Senior Notes due 2024
|
|
March 2018
|
|
March 2024
|
|
859,125
|
|
|
3.08
|
%
|
|
—
|
|
|
—
|
%
|
||
5.750% Senior Notes due 2025
|
|
November 2014
|
|
January 2025
|
|
500,000
|
|
|
5.88
|
%
|
|
500,000
|
|
|
5.88
|
%
|
||
2.875% Euro Senior Notes due 2025
|
|
September 2017
|
|
October 2025
|
|
1,145,500
|
|
|
3.04
|
%
|
|
1,201,000
|
|
|
3.04
|
%
|
||
5.875% Senior Notes due 2026
|
|
December 2015
|
|
January 2026
|
|
1,100,000
|
|
|
6.03
|
%
|
|
1,100,000
|
|
|
6.03
|
%
|
||
2.875% Euro Senior Notes due 2026
|
|
December 2017
|
|
February 2026
|
|
1,145,500
|
|
|
3.04
|
%
|
|
1,201,000
|
|
|
3.04
|
%
|
||
5.375% Senior Notes due 2027
|
|
March 2017
|
|
May 2027
|
|
1,250,000
|
|
|
5.51
|
%
|
|
1,250,000
|
|
|
5.51
|
%
|
||
|
|
|
|
|
|
8,500,125
|
|
|
|
|
7,002,000
|
|
|
|
||||
Less amount representing unamortized debt issuance cost
|
|
(75,372
|
)
|
|
|
|
(78,151
|
)
|
|
|
||||||||
Add amount representing unamortized debt premium
|
|
|
|
5,031
|
|
|
|
|
—
|
|
|
|
||||||
|
|
|
|
|
|
8,429,784
|
|
|
|
|
6,923,849
|
|
|
|
||||
Less current portion
|
|
|
|
|
|
(300,999
|
)
|
|
|
|
—
|
|
|
|
||||
|
|
|
|
|
|
$
|
8,128,785
|
|
|
|
|
$
|
6,923,849
|
|
|
|
•
|
incur additional debt;
|
•
|
pay dividends or make other restricted payments;
|
•
|
purchase, redeem or retire capital stock or subordinated debt;
|
•
|
make asset sales;
|
•
|
enter into transactions with affiliates;
|
•
|
incur liens
(2)
;
|
•
|
enter into sale-leaseback transactions
(2)
;
|
•
|
provide subsidiary guarantees;
|
•
|
make investments; and
|
•
|
merge or consolidate with any other person
(2)
.
|
|
(1)
|
If the senior notes are rated investment grade at any time by two or more of Standard & Poor's, Moody's and Fitch, most of the restrictive covenants contained in the supplemental indentures will be suspended.
|
(2)
|
The supplemental indentures for the
5.000%
Infomart Senior Notes,
2.875%
Euro Senior Notes due 2024 and
2.875%
Euro Senior Notes due 2026 only contain these covenants footnoted with
(2)
.
|
Senior Note Description
|
Early Equity Redemption Price
|
First Scheduled Redemption Date
|
First Scheduled Redemption Price
|
Second Year Redemption Price
|
Third Year Redemption Price
|
Fourth Year
(if scheduled) Redemption Price
|
5.375% Senior Notes due 2022
|
105.375%
|
January 1, 2018
|
104.031%
|
102.688%
|
101.344%
|
100.000%
|
5.375% Senior Notes due 2023
|
105.375%
|
April 1, 2018
|
102.688%
|
101.792%
|
100.896%
|
100.000%
|
2.875% Euro Senior Notes due 2024
|
102.875%
|
September 15, 2020
|
101.438%
|
100.719%
|
100.000%
|
|
5.750% Senior Notes due 2025
|
105.750%
|
January 1, 2020
|
102.875%
|
101.917%
|
100.958%
|
100.000%
|
2.875% Euro Senior Notes due 2025
|
102.875%
|
October 1, 2020
|
101.438%
|
100.719%
|
100.000%
|
|
5.875% Senior Notes due 2026
|
105.875%
|
January 15, 2021
|
102.938%
|
101.958%
|
100.979%
|
100.000%
|
2.875% Euro Senior Notes due 2026
|
102.875%
|
February 1, 2021
|
101.438%
|
100.719%
|
100.000%
|
|
5.375% Senior Notes due 2027
|
105.375%
|
May 15, 2022
|
102.688%
|
101.792%
|
100.896%
|
100.000%
|
(1)
|
1.0%
of the principal amount of the senior notes;
|
(2)
|
the excess of:
|
|
2018
|
|
2017
|
||||
Mortgage and loans payable
|
$
|
1,389,632
|
|
|
$
|
1,464,877
|
|
Senior notes
|
8,422,211
|
|
|
7,288,673
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Interest expense
|
$
|
521,494
|
|
|
$
|
478,698
|
|
|
$
|
392,156
|
|
Interest capitalized
|
19,880
|
|
|
22,625
|
|
|
13,338
|
|
|||
Interest charges incurred
(1)
|
$
|
541,374
|
|
|
$
|
501,323
|
|
|
$
|
405,494
|
|
|
(1)
|
Interest charges incurred for the year ended December 31, 2017 and 2016 also include interest expense incurred under the previously outstanding credit facility the Company entered in 2014, which was terminated in December 2017.
|
12.
|
Stockholders' Equity
|
Common stock options and restricted stock units
|
3,885,220
|
|
Common stock employee purchase plans
|
3,120,425
|
|
Total
|
7,005,645
|
|
|
December 31, 2015
|
|
Net
Change |
|
December 31, 2016
|
|
Net
Change |
|
December 31, 2017
|
|
Net
Change |
|
Cumulative Effect Adjustment
|
|
December 31, 2018
|
||||||||||||||||
Foreign currency translation adjustment ("CTA") gain (loss)
|
$
|
(523,709
|
)
|
|
$
|
(507,420
|
)
|
|
$
|
(1,031,129
|
)
|
|
$
|
454,269
|
|
|
$
|
(576,860
|
)
|
|
$
|
(421,743
|
)
|
|
$
|
—
|
|
|
$
|
(998,603
|
)
|
Unrealized gain (loss) on cash flow hedges
(1)
|
11,153
|
|
|
19,551
|
|
|
30,704
|
|
|
(54,895
|
)
|
|
(24,191
|
)
|
|
43,671
|
|
|
—
|
|
|
19,480
|
|
||||||||
Net investment hedge CTA gain (loss)
(1)
|
4,484
|
|
|
45,505
|
|
|
49,989
|
|
|
(235,292
|
)
|
|
(185,303
|
)
|
|
219,628
|
|
|
—
|
|
|
34,325
|
|
||||||||
Unrealized gain (loss) on available for sale securities
(2)
|
(139
|
)
|
|
2,249
|
|
|
2,110
|
|
|
14
|
|
|
2,124
|
|
|
—
|
|
|
(2,124
|
)
|
|
—
|
|
||||||||
Net actuarial gain (loss) on defined benefit plans
(3)
|
(848
|
)
|
|
32
|
|
|
(816
|
)
|
|
(143
|
)
|
|
(959
|
)
|
|
55
|
|
|
—
|
|
|
(904
|
)
|
||||||||
|
$
|
(509,059
|
)
|
|
$
|
(440,083
|
)
|
|
$
|
(949,142
|
)
|
|
$
|
163,953
|
|
|
$
|
(785,189
|
)
|
|
$
|
(158,389
|
)
|
|
$
|
(2,124
|
)
|
|
$
|
(945,702
|
)
|
|
(1)
|
Refer to Note 8 for a discussion of the amounts reclassified from accumulated other comprehensive loss to net income.
|
(2)
|
Upon adoption of ASU 2016-01 during the three months ended March 31, 2018, the Company recorded a net cumulative effect adjustment of
$2.1 million
from accumulated other comprehensive loss to retained earnings. The realized gains and losses reclassified from accumulated other comprehensive loss to net income as a result of sale of available for sale securities were not significant for the years ended December 31, 2017 and 2016.
|
(3)
|
The Company has a defined benefit pension plan covering all employees in one country where such plans are mandated by law. The Company does not have any defined benefit plans in any other countries. The unamortized gain (loss) on defined benefit plans includes gains or losses resulting from a change in the value of either the projected benefit obligation or the plan assets resulting from a change in an actuarial assumption, net of amortization.
|
Record Date
|
|
Payment Date
|
|
Total Distribution
|
|
Nonqualified Ordinary Dividend
|
|
Qualified Ordinary Dividend
|
|
Return of Capital
|
||||||||
|
|
|
|
(per share)
|
||||||||||||||
Fiscal 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||
2/26/2018
|
|
3/21/2018
|
|
$
|
2.280000
|
|
|
$
|
2.280000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
5/23/2018
|
|
6/20/2018
|
|
2.280000
|
|
|
2.280000
|
|
|
—
|
|
|
—
|
|
||||
8/22/2018
|
|
9/19/2018
|
|
2.280000
|
|
|
2.280000
|
|
|
—
|
|
|
—
|
|
||||
11/14/2018
|
|
12/12/2018
|
|
2.280000
|
|
|
2.280000
|
|
|
—
|
|
|
—
|
|
||||
Total
|
|
|
|
$
|
9.120000
|
|
|
$
|
9.120000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fiscal 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||
2/27/2017
|
|
3/22/2017
|
|
$
|
2.000000
|
|
|
$
|
2.000000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
5/24/2017
|
|
6/21/2017
|
|
2.000000
|
|
|
2.000000
|
|
|
—
|
|
|
—
|
|
||||
8/23/2017
|
|
9/20/2017
|
|
2.000000
|
|
|
2.000000
|
|
|
—
|
|
|
—
|
|
||||
11/15/2017
|
|
12/13/2017
|
|
2.000000
|
|
|
2.000000
|
|
|
—
|
|
|
—
|
|
||||
Total
|
|
|
|
$
|
8.000000
|
|
|
$
|
8.000000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
13.
|
Stock-Based Compensation
|
|
Number of Shares Outstanding
|
|
Weighted Average Grant Date Fair Value per Share
|
|
Weighted Average Remaining Contractual Life (Years)
|
|
Aggregate Intrinsic Value
(1)
(Dollars in Thousands)
|
|||||
Restricted stock units outstanding, December 31, 2015
|
1,416,438
|
|
|
$
|
148.53
|
|
|
|
|
|
|
|
Restricted stock units granted
|
720,601
|
|
|
309.18
|
|
|
|
|
|
|
||
Additional shares granted due to special distribution
|
37
|
|
|
297.03
|
|
|
|
|
|
|
||
Restricted stock units released, vested
|
(655,584
|
)
|
|
213.72
|
|
|
|
|
|
|
||
Special distribution shares released
|
(35,354
|
)
|
|
269.94
|
|
|
|
|
|
|
||
Restricted stock units canceled
|
(93,940
|
)
|
|
242.41
|
|
|
|
|
|
|
||
Special distribution shares canceled
|
(4,319
|
)
|
|
272.84
|
|
|
|
|
|
|
||
Restricted stock units outstanding, December 31, 2016
|
1,347,879
|
|
|
192.59
|
|
|
|
|
|
|
||
Restricted stock units granted
|
658,196
|
|
|
389.60
|
|
|
|
|
|
|
||
Restricted stock units released, vested
|
(606,064
|
)
|
|
260.75
|
|
|
|
|
|
|
||
Special distribution shares released
|
(15,667
|
)
|
|
243.06
|
|
|
|
|
|
|
||
Restricted stock units canceled
|
(79,451
|
)
|
|
313.83
|
|
|
|
|
|
|
||
Special distribution shares canceled
|
(1,002
|
)
|
|
282.49
|
|
|
|
|
|
|
||
Restricted stock units outstanding, December 31, 2017
|
1,303,891
|
|
|
252.30
|
|
|
|
|
|
|
||
Restricted stock units granted
|
704,249
|
|
|
387.31
|
|
|
|
|
|
|
||
Restricted stock units released, vested
|
(593,528
|
)
|
|
299.07
|
|
|
|
|
|
|
||
Special distribution shares released
|
(13,880
|
)
|
|
283.14
|
|
|
|
|
|
|
||
Restricted stock units canceled
|
(173,460
|
)
|
|
336.75
|
|
|
|
|
|
|
||
Special distribution shares canceled
|
(485
|
)
|
|
295.77
|
|
|
|
|
|
|
||
Restricted stock units outstanding, December 31, 2018
|
1,226,787
|
|
|
$
|
361.22
|
|
|
1.24
|
|
$
|
432,516
|
|
|
(1)
|
The intrinsic value is calculated based on the market value of the stock as of
December 31, 2018
.
|
|
2018
|
|
2017
|
|
2016
|
||||||
Weighted-average purchase price per share
|
$
|
341.48
|
|
|
$
|
250.65
|
|
|
$
|
217.91
|
|
Weighted average grant-date fair value per share of shares purchased
|
$
|
90.04
|
|
|
$
|
72.21
|
|
|
$
|
60.49
|
|
Number of shares purchased
|
145,346
|
|
|
162,076
|
|
|
150,044
|
|
|
2018
|
|
2017
|
|
2016
|
|||
Range of dividend yield
|
1.97 - 2.00%
|
|
|
2.10 - 2.31%
|
|
|
2.38 - 2.53%
|
|
Range of risk-free interest rate
|
1.79 - 2.68%
|
|
|
0.70 - 1.35%
|
|
|
0.48 - 0.76%
|
|
Range of expected volatility
|
19.04 - 24.33%
|
|
|
16.42 - 24.27%
|
|
|
18.80 - 30.94%
|
|
Weighted-average expected volatility
|
20.74
|
%
|
|
20.30
|
%
|
|
25.01
|
%
|
Weighted average expected life (in years)
|
1.43
|
|
|
1.52
|
|
|
1.41
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Cost of revenues
|
$
|
18,247
|
|
|
$
|
13,621
|
|
|
$
|
13,086
|
|
Sales and marketing
|
53,448
|
|
|
50,094
|
|
|
43,030
|
|
|||
General and administrative
|
109,021
|
|
|
111,785
|
|
|
100,032
|
|
|||
Total
|
$
|
180,716
|
|
|
$
|
175,500
|
|
|
$
|
156,148
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Restricted stock units
|
$
|
165,141
|
|
|
$
|
164,321
|
|
|
$
|
145,769
|
|
Employee stock purchase plan
|
15,575
|
|
|
11,179
|
|
|
10,379
|
|
|||
Total
|
$
|
180,716
|
|
|
$
|
175,500
|
|
|
$
|
156,148
|
|
14.
|
Income Taxes
|
|
2018
|
|
2017
|
|
2016
|
||||||
Domestic
|
$
|
298,009
|
|
|
$
|
148,500
|
|
|
$
|
215,010
|
|
Foreign
|
135,029
|
|
|
138,332
|
|
|
(55,151
|
)
|
|||
Income from continuing operations before income taxes
|
$
|
433,038
|
|
|
$
|
286,832
|
|
|
$
|
159,859
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Current:
|
|
|
|
|
|
||||||
Federal
|
$
|
7,085
|
|
|
$
|
9,346
|
|
|
$
|
(16,365
|
)
|
State and local
|
(2,663
|
)
|
|
(849
|
)
|
|
(2,147
|
)
|
|||
Foreign
|
(118,175
|
)
|
|
(109,032
|
)
|
|
(62,278
|
)
|
|||
Subtotal
|
(113,753
|
)
|
|
(100,535
|
)
|
|
(80,790
|
)
|
|||
Deferred:
|
|
|
|
|
|
||||||
Federal
|
(27,874
|
)
|
|
9,684
|
|
|
(11,184
|
)
|
|||
State and local
|
(1,165
|
)
|
|
2,018
|
|
|
(3,328
|
)
|
|||
Foreign
|
75,113
|
|
|
34,983
|
|
|
49,851
|
|
|||
Subtotal
|
46,074
|
|
|
46,685
|
|
|
35,339
|
|
|||
Provision for income taxes
|
$
|
(67,679
|
)
|
|
$
|
(53,850
|
)
|
|
$
|
(45,451
|
)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Federal tax at statutory rate
|
$
|
(90,938
|
)
|
|
$
|
(100,391
|
)
|
|
$
|
(55,951
|
)
|
State and local tax (expense) benefit
|
(3,616
|
)
|
|
1,000
|
|
|
(4,895
|
)
|
|||
Deferred tax assets generated in current year not benefited
|
(3,777
|
)
|
|
(7,643
|
)
|
|
(6,246
|
)
|
|||
Foreign income tax rate differential
|
(4,072
|
)
|
|
26,151
|
|
|
22,016
|
|
|||
Non-deductible expenses
|
(756
|
)
|
|
(2,629
|
)
|
|
(15,828
|
)
|
|||
Stock-based compensation expense
|
(2,308
|
)
|
|
(616
|
)
|
|
(5,890
|
)
|
|||
Change in valuation allowance
|
38,684
|
|
|
(716
|
)
|
|
11,995
|
|
|||
Foreign financing activities
|
(17,548
|
)
|
|
1,319
|
|
|
(26,708
|
)
|
|||
Loss on debt extinguishment
|
—
|
|
|
(1,604
|
)
|
|
(8,288
|
)
|
|||
Gain on divestments
|
—
|
|
|
—
|
|
|
8,828
|
|
|||
Uncertain tax positions reserve
|
(20,440
|
)
|
|
(66
|
)
|
|
(9,371
|
)
|
|||
Tax adjustments related to REIT
|
32,189
|
|
|
41,973
|
|
|
45,060
|
|
|||
Enactment of the US tax reform
|
—
|
|
|
(6,513
|
)
|
|
—
|
|
|||
Other, net
|
4,903
|
|
|
(4,115
|
)
|
|
(173
|
)
|
|||
Total income tax expense
|
$
|
(67,679
|
)
|
|
$
|
(53,850
|
)
|
|
$
|
(45,451
|
)
|
|
2018
|
|
2017
|
||||
Deferred tax assets:
|
|
|
|
||||
Reserves and accruals
|
$
|
24,136
|
|
|
$
|
27,673
|
|
Stock-based compensation expense
|
2,524
|
|
|
1,960
|
|
||
Unrealized losses
|
1,471
|
|
|
10,768
|
|
||
Operating loss carryforwards
|
49,169
|
|
|
95,864
|
|
||
Gross deferred tax assets
|
77,300
|
|
|
136,265
|
|
||
Valuation allowance
|
(57,003
|
)
|
|
(84,573
|
)
|
||
Total deferred tax assets, net
|
20,297
|
|
|
51,692
|
|
||
Deferred tax liabilities:
|
|
|
|
||||
Property, plant and equipment
|
(50,610
|
)
|
|
(65,825
|
)
|
||
Intangible assets
|
(159,237
|
)
|
|
(172,123
|
)
|
||
Total deferred tax liabilities
|
(209,847
|
)
|
|
(237,948
|
)
|
||
Net deferred tax liabilities
|
$
|
(189,550
|
)
|
|
$
|
(186,256
|
)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Beginning balance
|
$
|
84,573
|
|
|
$
|
29,167
|
|
|
$
|
29,894
|
|
Amounts from acquisitions
|
33,070
|
|
|
25,283
|
|
|
5,053
|
|
|||
Amounts recognized into income
|
(38,684
|
)
|
|
716
|
|
|
(11,995
|
)
|
|||
Current increase (decrease)
|
(13,086
|
)
|
|
28,431
|
|
|
6,557
|
|
|||
Impact of foreign currency exchange
|
(8,870
|
)
|
|
976
|
|
|
(342
|
)
|
|||
Ending balance
|
$
|
57,003
|
|
|
$
|
84,573
|
|
|
$
|
29,167
|
|
Expiration Date
|
|
Federal
(1)
|
|
State
|
|
Foreign
|
|
Total
|
||||||||
2019
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,397
|
|
|
$
|
8,397
|
|
2020 to 2022
|
|
210,114
|
|
|
—
|
|
|
14,436
|
|
|
224,550
|
|
||||
2023 to 2025
|
|
26,838
|
|
|
—
|
|
|
13,596
|
|
|
40,434
|
|
||||
2026 to 2028
|
|
12,186
|
|
|
45
|
|
|
2,297
|
|
|
14,528
|
|
||||
Thereafter
|
|
—
|
|
|
731
|
|
|
137,333
|
|
|
138,064
|
|
||||
|
|
$
|
249,138
|
|
|
$
|
776
|
|
|
$
|
176,059
|
|
|
$
|
425,973
|
|
|
(1)
|
The total amount of NOL carryforwards that will not be available to offset the Company's future taxable income after dividend paid deduction due to Section 382 limitations was
$241.8 million
for federal.
|
|
2018
|
|
2017
|
|
2016
|
||||||
Beginning balance
|
$
|
82,390
|
|
|
$
|
72,187
|
|
|
$
|
30,845
|
|
Gross increases related to prior year tax positions
|
33,436
|
|
|
6,095
|
|
|
570
|
|
|||
Gross increases related to current year tax positions
|
48,685
|
|
|
19,832
|
|
|
41,972
|
|
|||
Decreases resulting from expiration of statute of limitation
|
(1,276
|
)
|
|
(15,410
|
)
|
|
(826
|
)
|
|||
Decreases resulting from settlements
|
(12,305
|
)
|
|
(314
|
)
|
|
(374
|
)
|
|||
Ending balance
|
$
|
150,930
|
|
|
$
|
82,390
|
|
|
$
|
72,187
|
|
15.
|
Commitments and Contingencies
|
16.
|
Related Party Transactions
|
17.
|
Segment Information
|
|
Twelve Months Ended December 31, 2018
|
||||||||||||||
|
Americas
|
|
EMEA
|
|
Asia-Pacific
|
|
Total
|
||||||||
Colocation
(1)
|
$
|
1,732,998
|
|
|
$
|
1,201,769
|
|
|
$
|
735,404
|
|
|
$
|
3,670,171
|
|
Interconnection
|
532,163
|
|
|
138,874
|
|
|
130,928
|
|
|
801,965
|
|
||||
Managed infrastructure
|
75,595
|
|
|
118,685
|
|
|
85,352
|
|
|
279,632
|
|
||||
Other
(1)
|
16,570
|
|
|
8,164
|
|
|
—
|
|
|
24,734
|
|
||||
Recurring revenues
|
2,357,326
|
|
|
1,467,492
|
|
|
951,684
|
|
|
4,776,502
|
|
||||
Non-recurring revenues
|
127,408
|
|
|
95,145
|
|
|
72,599
|
|
|
295,152
|
|
||||
Total
|
$
|
2,484,734
|
|
|
$
|
1,562,637
|
|
|
$
|
1,024,283
|
|
|
$
|
5,071,654
|
|
|
(1)
|
Includes some leasing and hedging activities. For further information on revenue recognition, see Note 1 and Note 2 above.
|
|
Twelve Months Ended December 31, 2017
|
||||||||||||||
|
Americas
|
|
EMEA
|
|
Asia-Pacific
|
|
Total
|
||||||||
Colocation
(1)
|
$
|
1,518,929
|
|
|
$
|
1,063,543
|
|
|
$
|
595,673
|
|
|
$
|
3,178,145
|
|
Interconnection
|
469,268
|
|
|
104,891
|
|
|
107,014
|
|
|
681,173
|
|
||||
Managed infrastructure
|
68,937
|
|
|
88,122
|
|
|
88,110
|
|
|
245,169
|
|
||||
Other
(1)
|
5,218
|
|
|
10,415
|
|
|
—
|
|
|
15,633
|
|
||||
Recurring revenues
|
2,062,352
|
|
|
1,266,971
|
|
|
790,797
|
|
|
4,120,120
|
|
||||
Non-recurring revenues
|
110,408
|
|
|
79,285
|
|
|
58,615
|
|
|
248,308
|
|
||||
Total
|
$
|
2,172,760
|
|
|
$
|
1,346,256
|
|
|
$
|
849,412
|
|
|
$
|
4,368,428
|
|
|
(1)
|
Includes some leasing and hedging activities. For further information on revenue recognition, see Note 1 and Note 2 above.
|
|
Twelve Months Ended December 31, 2016
|
||||||||||||||
|
Americas
|
|
EMEA
|
|
Asia-Pacific
|
|
Total
|
||||||||
Colocation
(1)
|
$
|
1,161,665
|
|
|
$
|
941,848
|
|
|
$
|
543,581
|
|
|
$
|
2,647,094
|
|
Interconnection
|
374,655
|
|
|
85,869
|
|
|
82,521
|
|
|
543,045
|
|
||||
Managed infrastructure
|
53,404
|
|
|
67,553
|
|
|
89,335
|
|
|
210,292
|
|
||||
Other
(1)
|
3,360
|
|
|
11,382
|
|
|
2,201
|
|
|
16,943
|
|
||||
Recurring revenues
|
1,593,084
|
|
|
1,106,652
|
|
|
717,638
|
|
|
3,417,374
|
|
||||
Non-recurring revenues
|
86,465
|
|
|
64,687
|
|
|
43,463
|
|
|
194,615
|
|
||||
Total
|
$
|
1,679,549
|
|
|
$
|
1,171,339
|
|
|
$
|
761,101
|
|
|
$
|
3,611,989
|
|
|
(1)
|
Includes some leasing and hedging activities. For further information on revenue recognition, see Note 1 and Note 2 above.
|
|
2018
|
|
2017
|
|
2016
|
||||||
Adjusted EBITDA:
|
|
|
|
|
|
||||||
Americas
|
$
|
1,183,831
|
|
|
$
|
1,034,694
|
|
|
$
|
787,311
|
|
EMEA
|
698,280
|
|
|
582,697
|
|
|
494,263
|
|
|||
Asia-Pacific
|
531,129
|
|
|
434,650
|
|
|
375,900
|
|
|||
Total adjusted EBITDA
|
2,413,240
|
|
|
2,052,041
|
|
|
1,657,474
|
|
|||
Depreciation, amortization and accretion expense
|
(1,226,741
|
)
|
|
(1,028,892
|
)
|
|
(843,510
|
)
|
|||
Stock-based compensation expense
|
(180,716
|
)
|
|
(175,500
|
)
|
|
(156,148
|
)
|
|||
Acquisitions costs
|
(34,413
|
)
|
|
(38,635
|
)
|
|
(64,195
|
)
|
|||
Impairment charges
|
—
|
|
|
—
|
|
|
(7,698
|
)
|
|||
Gain on asset sales
|
6,013
|
|
|
—
|
|
|
32,816
|
|
|||
Income from operations
|
$
|
977,383
|
|
|
$
|
809,014
|
|
|
$
|
618,739
|
|
|
2018
|
|
2017
|
||||
Americas
(1)
|
$
|
5,010,507
|
|
|
$
|
4,425,077
|
|
EMEA
|
3,726,596
|
|
|
3,265,088
|
|
||
Asia-Pacific
|
2,288,917
|
|
|
1,704,437
|
|
||
Total long-lived assets
|
$
|
11,026,020
|
|
|
$
|
9,394,602
|
|
|
(1)
|
Includes
$4.6 billion
and
$4.0 billion
, respectively, of long-lived assets attributed to the U.S. as of
December 31, 2018
and
2017
.
|
18.
|
Subsequent Events
|
19.
|
Quarterly Financial Information (Unaudited)
|
|
2018
|
||||||||||||||
|
Quarters Ended
|
||||||||||||||
|
March 31
|
|
June 30
|
|
September 30
|
|
December 31
|
||||||||
Revenues
|
$
|
1,215,877
|
|
|
$
|
1,261,943
|
|
|
$
|
1,283,751
|
|
|
$
|
1,310,083
|
|
Gross profit
|
593,447
|
|
|
610,142
|
|
|
623,442
|
|
|
639,148
|
|
||||
Net income
|
62,894
|
|
|
67,618
|
|
|
124,825
|
|
|
110,022
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
0.79
|
|
|
0.85
|
|
|
1.56
|
|
|
1.37
|
|
||||
Diluted
|
0.79
|
|
|
0.85
|
|
|
1.55
|
|
|
1.36
|
|
|
2017
|
||||||||||||||
|
Quarters Ended
|
||||||||||||||
|
March 31
|
|
June 30
|
|
September 30
|
|
December 31
|
||||||||
Revenues
|
$
|
949,525
|
|
|
$
|
1,066,421
|
|
|
$
|
1,152,261
|
|
|
$
|
1,200,221
|
|
Gross profit
|
480,564
|
|
|
544,218
|
|
|
569,901
|
|
|
580,596
|
|
||||
Net income
|
42,062
|
|
|
45,805
|
|
|
79,900
|
|
|
65,215
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
0.58
|
|
|
0.59
|
|
|
1.02
|
|
|
0.83
|
|
||||
Diluted
|
0.57
|
|
|
0.58
|
|
|
1.02
|
|
|
0.82
|
|
|
Initial Costs to Company
(1)
|
|
Costs Capitalized Subsequent to Acquisition or Lease
|
|
Total Costs
|
|
|
||||||||||||
|
Encumbrances
|
|
Land
|
|
Buildings and Improvements
(2)
|
|
Land
|
|
Buildings and Improvements
(2)
|
|
Land
|
|
Buildings and Improvements
(2)
|
|
Accumulated Depreciation
(3)
|
|
Date of Construction
|
|
Date of Acquisition or Lease
(4)
|
Americas:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AT1 ATLANTA (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
125,872
|
|
—
|
|
125,872
|
|
(50,601)
|
|
N/A
|
|
2010
|
AT2 ATLANTA (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
41,058
|
|
—
|
|
41,058
|
|
(21,054)
|
|
N/A
|
|
2010
|
AT3 ATLANTA (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
4,469
|
|
—
|
|
4,469
|
|
(2,128)
|
|
N/A
|
|
2010
|
AT4 ATLANTA (METRO)
|
—
|
|
5,400
|
|
20,209
|
|
—
|
|
7,588
|
|
5,400
|
|
27,797
|
|
(6,133)
|
|
N/A
|
|
2017
|
AT5 ATLANTA (METRO)
|
—
|
|
—
|
|
5,011
|
|
—
|
|
2,170
|
|
—
|
|
7,181
|
|
(2,248)
|
|
N/A
|
|
2017
|
BG1 BOGOTÁ (METRO), COLOMBIA
|
—
|
|
—
|
|
8,779
|
|
929
|
|
2,527
|
|
929
|
|
11,306
|
|
(1,866)
|
|
N/A
|
|
2017
|
BO1 BOSTON (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
11,026
|
|
—
|
|
11,026
|
|
(6,920)
|
|
N/A
|
|
2010
|
BO2 BOSTON (METRO)
|
—
|
|
2,500
|
|
30,383
|
|
—
|
|
2,800
|
|
2,500
|
|
33,183
|
|
(6,602)
|
|
N/A
|
|
2017
|
CH1 CHICAGO (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
146,693
|
|
—
|
|
146,693
|
|
(89,280)
|
|
2001
|
|
1999
|
CH2 CHICAGO (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
108,106
|
|
—
|
|
108,106
|
|
(55,969)
|
|
2005
|
|
2005
|
CH3 CHICAGO (METRO)
|
—
|
|
9,759
|
|
—
|
|
351
|
|
295,893
|
|
10,110
|
|
295,893
|
|
(106,445)
|
|
2007
|
|
2006
|
CH4 CHICAGO (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
22,148
|
|
—
|
|
22,148
|
|
(11,315)
|
|
2010
|
|
2009
|
CH7 CHICAGO (METRO)
|
—
|
|
670
|
|
10,564
|
|
—
|
|
2,029
|
|
670
|
|
12,593
|
|
(2,357)
|
|
N/A
|
|
2017
|
CU1 CULPEPER (METRO)
|
—
|
|
1,019
|
|
37,581
|
|
—
|
|
1,315
|
|
1,019
|
|
38,896
|
|
(6,618)
|
|
N/A
|
|
2017
|
CU2 CULPEPER (METRO)
|
—
|
|
1,244
|
|
48,000
|
|
—
|
|
1,357
|
|
1,244
|
|
49,357
|
|
(7,200)
|
|
N/A
|
|
2017
|
CU3 CULPEPER (METRO)
|
—
|
|
1,088
|
|
37,387
|
|
—
|
|
555
|
|
1,088
|
|
37,942
|
|
(5,605)
|
|
N/A
|
|
2017
|
CU4 CULPEPER (METRO)
|
—
|
|
1,372
|
|
27,832
|
|
—
|
|
31,364
|
|
1,372
|
|
59,196
|
|
(3,398)
|
|
N/A
|
|
2017
|
DA1 DALLAS (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
66,119
|
|
—
|
|
66,119
|
|
(37,704)
|
|
2000
|
|
2000
|
DA2 DALLAS (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
79,384
|
|
—
|
|
79,384
|
|
(25,148)
|
|
2011
|
|
2010
|
DA3 DALLAS (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
95,891
|
|
—
|
|
95,891
|
|
(33,723)
|
|
N/A
|
|
2010
|
DA4 DALLAS (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
17,205
|
|
—
|
|
17,205
|
|
(8,470)
|
|
N/A
|
|
2010
|
DA6 DALLAS (METRO)
|
—
|
|
—
|
|
20,522
|
|
—
|
|
139,630
|
|
—
|
|
160,152
|
|
(22,692)
|
|
2013
|
|
2012
|
DA7 DALLAS (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
28,006
|
|
—
|
|
28,006
|
|
(7,670)
|
|
2015
|
|
2015
|
DA9 DALLAS (METRO)
|
—
|
|
610
|
|
15,398
|
|
—
|
|
699
|
|
610
|
|
16,097
|
|
(2,963)
|
|
N/A
|
|
2017
|
DA10 DALLAS (METRO)
|
—
|
|
—
|
|
117
|
|
—
|
|
4,633
|
|
—
|
|
4,750
|
|
(1,704)
|
|
N/A
|
|
2017
|
INFOMART BUILDING DALLAS (METRO)
|
—
|
|
24,380
|
|
337,643
|
|
—
|
|
5,619
|
|
24,380
|
|
343,262
|
|
(8,353)
|
|
N/A
|
|
2018
|
DC1 WASHINGTON, DC (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
3,247
|
|
—
|
|
3,247
|
|
(825)
|
|
2007
|
|
1999
|
DC2 WASHINGTON, DC (METRO)
|
—
|
|
—
|
|
—
|
|
5,047
|
|
121,519
|
|
5,047
|
|
121,519
|
|
(93,855)
|
|
1999
|
|
1999
|
DC3 WASHINGTON, DC (METRO)
|
—
|
|
—
|
|
37,451
|
|
—
|
|
49,266
|
|
—
|
|
86,717
|
|
(48,753)
|
|
2004
|
|
2004
|
DC4 WASHINGTON, DC (METRO)
|
—
|
|
1,906
|
|
7,272
|
|
—
|
|
71,813
|
|
1,906
|
|
79,085
|
|
(50,787)
|
|
2007
|
|
2005
|
DC5 WASHINGTON, DC (METRO)
|
—
|
|
1,429
|
|
4,983
|
|
—
|
|
88,456
|
|
1,429
|
|
93,439
|
|
(60,307)
|
|
2008
|
|
2005
|
|
Initial Costs to Company
(1)
|
|
Costs Capitalized Subsequent to Acquisition or Lease
|
|
Total Costs
|
|
|
||||||||||||
|
Encumbrances
|
|
Land
|
|
Buildings and Improvements
(2)
|
|
Land
|
|
Buildings and Improvements
(2)
|
|
Land
|
|
Buildings and Improvements
(2)
|
|
Accumulated Depreciation
(3)
|
|
Date of Construction
|
|
Date of Acquisition or Lease
(4)
|
DC6 WASHINGTON, DC (METRO)
|
—
|
|
1,429
|
|
5,082
|
|
—
|
|
89,795
|
|
1,429
|
|
94,877
|
|
(44,365)
|
|
2010
|
|
2005
|
DC7 WASHINGTON, DC (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
19,765
|
|
—
|
|
19,765
|
|
(11,629)
|
|
N/A
|
|
2010
|
DC8 WASHINGTON, DC (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
4,901
|
|
—
|
|
4,901
|
|
(4,589)
|
|
N/A
|
|
2010
|
DC10 WASHINGTON, DC (METRO)
|
—
|
|
—
|
|
44,601
|
|
—
|
|
73,924
|
|
—
|
|
118,525
|
|
(52,029)
|
|
2012
|
|
2011
|
DC11 WASHINGTON, DC (METRO)
|
—
|
|
1,429
|
|
5,082
|
|
—
|
|
179,753
|
|
1,429
|
|
184,835
|
|
(40,450)
|
|
2013
|
|
2005
|
DC12 WASHINGTON, DC (METRO)
|
—
|
|
—
|
|
101,783
|
|
—
|
|
59,152
|
|
—
|
|
160,935
|
|
(8,220)
|
|
2017
|
|
2017
|
DC13 WASHINGTON, DC (METRO)
|
—
|
|
5,500
|
|
25,423
|
|
—
|
|
3,477
|
|
5,500
|
|
28,900
|
|
(6,928)
|
|
N/A
|
|
2017
|
DC14 WASHINGTON, DC (METRO)
|
—
|
|
2,560
|
|
33,511
|
|
—
|
|
614
|
|
2,560
|
|
34,125
|
|
(5,509)
|
|
N/A
|
|
2017
|
DC97 WASHINGTON, DC (METRO)
|
—
|
|
—
|
|
2,021
|
|
—
|
|
631
|
|
—
|
|
2,652
|
|
(692)
|
|
N/A
|
|
2017
|
DE1 DENVER (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
9,985
|
|
—
|
|
9,985
|
|
(7,988)
|
|
N/A
|
|
2010
|
DE2 DENVER (METRO)
|
—
|
|
5,240
|
|
23,053
|
|
—
|
|
27,744
|
|
5,240
|
|
50,797
|
|
(8,099)
|
|
N/A
|
|
2017
|
HO1 HOUSTON (METRO)
|
—
|
|
1,440
|
|
23,780
|
|
—
|
|
31,078
|
|
1,440
|
|
54,858
|
|
(6,880)
|
|
N/A
|
|
2017
|
LA1 LOS ANGELES (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
106,877
|
|
—
|
|
106,877
|
|
(63,323)
|
|
2000
|
|
1999
|
LA2 LOS ANGELES (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
10,785
|
|
—
|
|
10,785
|
|
(8,654)
|
|
2001
|
|
2000
|
LA3 LOS ANGELES (METRO)
|
—
|
|
—
|
|
34,727
|
|
3,959
|
|
21,461
|
|
3,959
|
|
56,188
|
|
(44,967)
|
|
2005
|
|
2005
|
LA4 LOS ANGELES (METRO)
|
—
|
|
19,333
|
|
137,630
|
|
—
|
|
33,753
|
|
19,333
|
|
171,383
|
|
(78,571)
|
|
2009
|
|
2009
|
LA7 LOS ANGELES (METRO)
|
—
|
|
7,800
|
|
33,621
|
|
—
|
|
5,204
|
|
7,800
|
|
38,825
|
|
(6,166)
|
|
N/A
|
|
2017
|
MI1 MIAMI (METRO)
|
—
|
|
18,920
|
|
127,194
|
|
—
|
|
88,736
|
|
18,920
|
|
215,930
|
|
(25,966)
|
|
N/A
|
|
2017
|
MI2 MIAMI (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
23,391
|
|
—
|
|
23,391
|
|
(12,178)
|
|
N/A
|
|
2010
|
MI3 MIAMI (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
32,056
|
|
—
|
|
32,056
|
|
(12,752)
|
|
2012
|
|
2012
|
MI6 MIAMI (METRO)
|
—
|
|
4,750
|
|
23,017
|
|
—
|
|
5,916
|
|
4,750
|
|
28,933
|
|
(5,859)
|
|
N/A
|
|
2017
|
NY1 NEW YORK (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
70,595
|
|
—
|
|
70,595
|
|
(38,536)
|
|
1999
|
|
1999
|
NY2 NEW YORK (METRO)
|
—
|
|
—
|
|
—
|
|
17,859
|
|
198,809
|
|
17,859
|
|
198,809
|
|
(125,571)
|
|
2002
|
|
2000
|
NY4 NEW YORK (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
346,128
|
|
—
|
|
346,128
|
|
(176,708)
|
|
2007
|
|
2006
|
NY5 NEW YORK (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
259,184
|
|
—
|
|
259,184
|
|
(63,058)
|
|
2012
|
|
2010
|
NY6 NEW YORK (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
73,464
|
|
—
|
|
73,464
|
|
(11,734)
|
|
2015
|
|
2010
|
NY7 NEW YORK (METRO)
|
—
|
|
—
|
|
24,660
|
|
—
|
|
169,698
|
|
—
|
|
194,358
|
|
(115,229)
|
|
N/A
|
|
2010
|
NY8 NEW YORK (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
11,650
|
|
—
|
|
11,650
|
|
(7,426)
|
|
N/A
|
|
2010
|
NY9 NEW YORK (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
51,918
|
|
—
|
|
51,918
|
|
(31,834)
|
|
N/A
|
|
2010
|
NY11 NEW YORK (METRO)
|
—
|
|
2,050
|
|
58,717
|
|
—
|
|
11,378
|
|
2,050
|
|
70,095
|
|
(11,926)
|
|
N/A
|
|
2017
|
NY12 NEW YORK (METRO)
|
—
|
|
3,460
|
|
10,380
|
|
—
|
|
1,631
|
|
3,460
|
|
12,011
|
|
(2,413)
|
|
N/A
|
|
2017
|
NY13 NEW YORK (METRO)
|
—
|
|
—
|
|
31,603
|
|
—
|
|
4,170
|
|
—
|
|
35,773
|
|
(6,982)
|
|
N/A
|
|
2017
|
PH1 PHILADELPHIA (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
43,380
|
|
—
|
|
43,380
|
|
(14,553)
|
|
N/A
|
|
2010
|
RJ1 RIO DE JANEIRO (METRO), BRAZIL
|
—
|
|
—
|
|
—
|
|
—
|
|
20,167
|
|
—
|
|
20,167
|
|
(16,059)
|
|
2011
|
|
2011
|
RJ2 RIO DE JANEIRO (METRO), BRAZIL
|
—
|
|
—
|
|
2,012
|
|
1,695
|
|
51,849
|
|
1,695
|
|
53,861
|
|
(14,380)
|
|
2013
|
|
2012
|
|
Initial Costs to Company
(1)
|
|
Costs Capitalized Subsequent to Acquisition or Lease
|
|
Total Costs
|
|
|
||||||||||||
|
Encumbrances
|
|
Land
|
|
Buildings and Improvements
(2)
|
|
Land
|
|
Buildings and Improvements
(2)
|
|
Land
|
|
Buildings and Improvements
(2)
|
|
Accumulated Depreciation
(3)
|
|
Date of Construction
|
|
Date of Acquisition or Lease
(4)
|
SE2 SEATTLE (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
27,856
|
|
—
|
|
27,856
|
|
(23,013)
|
|
N/A
|
|
2010
|
SE3 SEATTLE (METRO)
|
—
|
|
—
|
|
1,760
|
|
—
|
|
97,454
|
|
—
|
|
99,214
|
|
(34,694)
|
|
2013
|
|
2011
|
SE4 SEATTLE (METRO)
|
—
|
|
4,000
|
|
12,903
|
|
—
|
|
13,032
|
|
4,000
|
|
25,935
|
|
(3,001)
|
|
N/A
|
|
2017
|
SP1 SÃO PAULO (METRO), BRAZIL
|
—
|
|
—
|
|
10,188
|
|
—
|
|
22,319
|
|
—
|
|
32,507
|
|
(23,450)
|
|
2011
|
|
2011
|
SP2 SÃO PAULO (METRO), BRAZIL
|
—
|
|
—
|
|
—
|
|
—
|
|
68,952
|
|
—
|
|
68,952
|
|
(50,007)
|
|
2011
|
|
2011
|
SP3 SÃO PAULO (METRO), BRAZIL
|
—
|
|
10,368
|
|
72,997
|
|
—
|
|
23,900
|
|
10,368
|
|
96,897
|
|
(10,451)
|
|
2017
|
|
2017
|
SP4 SÃO PAULO (METRO), BRAZIL
|
—
|
|
—
|
|
22,027
|
|
—
|
|
—
|
|
—
|
|
22,027
|
|
(4,936)
|
|
N/A
|
|
2017
|
SV1 SILICON VALLEY (METRO)
|
—
|
|
—
|
|
—
|
|
15,545
|
|
142,285
|
|
15,545
|
|
142,285
|
|
(89,903)
|
|
1999
|
|
1999
|
SV2 SILICON VALLEY (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
151,278
|
|
—
|
|
151,278
|
|
(81,688)
|
|
2003
|
|
2003
|
SV3 SILICON VALLEY (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
40,448
|
|
—
|
|
40,448
|
|
(35,541)
|
|
2004
|
|
1999
|
SV4 SILICON VALLEY (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
24,946
|
|
—
|
|
24,946
|
|
(20,473)
|
|
2005
|
|
2005
|
SV5 SILICON VALLEY (METRO)
|
—
|
|
6,238
|
|
98,991
|
|
—
|
|
94,163
|
|
6,238
|
|
193,154
|
|
(63,716)
|
|
2010
|
|
2010
|
SV6 SILICON VALLEY (METRO)
|
—
|
|
—
|
|
15,585
|
|
—
|
|
29,146
|
|
—
|
|
44,731
|
|
(28,862)
|
|
N/A
|
|
2010
|
SV8 SILICON VALLEY (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
51,200
|
|
—
|
|
51,200
|
|
(29,120)
|
|
N/A
|
|
2010
|
SV10 SILICON VALLEY (METRO)
|
—
|
|
12,646
|
|
123,594
|
|
—
|
|
81,555
|
|
12,646
|
|
205,149
|
|
(9,252)
|
|
2017
|
|
2017
|
SV12 SILICON VALLEY (METRO)
|
—
|
|
20,313
|
|
—
|
|
—
|
|
4,623
|
|
20,313
|
|
4,623
|
|
—
|
|
2015
|
|
2015
|
SV13 SILICON VALLEY (METRO)
|
—
|
|
—
|
|
3,828
|
|
—
|
|
85
|
|
—
|
|
3,913
|
|
(1,617)
|
|
N/A
|
|
2017
|
SV14 SILICON VALLEY (METRO)
|
—
|
|
3,638
|
|
5,503
|
|
—
|
|
3,375
|
|
3,638
|
|
8,878
|
|
(1,006)
|
|
N/A
|
|
2017
|
SV15 SILICON VALLEY (METRO)
|
—
|
|
7,651
|
|
23,060
|
|
—
|
|
838
|
|
7,651
|
|
23,898
|
|
(3,730)
|
|
N/A
|
|
2017
|
SV16 SILICON VALLEY (METRO)
|
—
|
|
4,271
|
|
15,018
|
|
—
|
|
646
|
|
4,271
|
|
15,664
|
|
(2,813)
|
|
N/A
|
|
2017
|
SV17 SILICON VALLEY (METRO)
|
—
|
|
—
|
|
17,493
|
|
—
|
|
2,034
|
|
—
|
|
19,527
|
|
(6,977)
|
|
N/A
|
|
2017
|
TR1 TORONTO (METRO), CANADA
|
—
|
|
—
|
|
—
|
|
—
|
|
87,819
|
|
—
|
|
87,819
|
|
(25,974)
|
|
N/A
|
|
2010
|
TR2 TORONTO (METRO), CANADA
|
—
|
|
—
|
|
21,113
|
|
—
|
|
94,362
|
|
—
|
|
115,475
|
|
(17,923)
|
|
2015
|
|
2015
|
OTHERS
(5)
|
—
|
|
78,242
|
|
21,304
|
|
—
|
|
39,800
|
|
78,242
|
|
61,104
|
|
(5,002)
|
|
Various
|
|
Various
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AD1 ABU DHABI (METRO), UNITED ARAB EMIRATES
|
—
|
|
—
|
|
—
|
|
—
|
|
319
|
|
—
|
|
319
|
|
(56)
|
|
N/A
|
|
2017
|
AM1 AMSTERDAM (METRO), THE NETHERLANDS
|
—
|
|
—
|
|
—
|
|
—
|
|
87,687
|
|
—
|
|
87,687
|
|
(37,861)
|
|
2008
|
|
2008
|
AM2 AMSTERDAM (METRO), THE NETHERLANDS
|
—
|
|
—
|
|
—
|
|
—
|
|
80,258
|
|
—
|
|
80,258
|
|
(27,008)
|
|
2010
|
|
2008
|
AM3 AMSTERDAM (METRO), THE NETHERLANDS
|
—
|
|
—
|
|
27,099
|
|
—
|
|
126,102
|
|
—
|
|
153,201
|
|
(43,860)
|
|
2012
|
|
2011
|
AM4 AMSTERDAM (METRO), THE NETHERLANDS
|
—
|
|
—
|
|
—
|
|
—
|
|
152,650
|
|
—
|
|
152,650
|
|
(6,626)
|
|
2016
|
|
2016
|
AM5 AMSTERDAM (METRO), THE NETHERLANDS
|
—
|
|
—
|
|
92,199
|
|
—
|
|
14,059
|
|
—
|
|
106,258
|
|
(19,576)
|
|
N/A
|
|
2016
|
|
Initial Costs to Company
(1)
|
|
Costs Capitalized Subsequent to Acquisition or Lease
|
|
Total Costs
|
|
|
||||||||||||
|
Encumbrances
|
|
Land
|
|
Buildings and Improvements
(2)
|
|
Land
|
|
Buildings and Improvements
(2)
|
|
Land
|
|
Buildings and Improvements
(2)
|
|
Accumulated Depreciation
(3)
|
|
Date of Construction
|
|
Date of Acquisition or Lease
(4)
|
AM6 AMSTERDAM (METRO), THE NETHERLANDS
|
—
|
|
6,616
|
|
50,876
|
|
584
|
|
65,278
|
|
7,200
|
|
116,154
|
|
(12,138)
|
|
N/A
|
|
2016
|
AM7 AMSTERDAM (METRO), THE NETHERLANDS
|
—
|
|
—
|
|
7,397
|
|
—
|
|
51,535
|
|
—
|
|
58,932
|
|
(2,378)
|
|
N/A
|
|
2016
|
AM8 AMSTERDAM (METRO), THE NETHERLANDS
|
—
|
|
—
|
|
—
|
|
—
|
|
11,125
|
|
—
|
|
11,125
|
|
(3,364)
|
|
N/A
|
|
2016
|
BA1 BARCELONA (METRO), SPAIN
|
—
|
|
—
|
|
9,443
|
|
—
|
|
1,843
|
|
—
|
|
11,286
|
|
(1,495)
|
|
N/A
|
|
2017
|
DB1 DUBLIN (METRO), IRELAND
|
—
|
|
—
|
|
—
|
|
—
|
|
3,389
|
|
—
|
|
3,389
|
|
(1,495)
|
|
N/A
|
|
2016
|
DB2 DUBLIN (METRO), IRELAND
|
—
|
|
—
|
|
12,460
|
|
—
|
|
4,384
|
|
—
|
|
16,844
|
|
(4,963)
|
|
N/A
|
|
2016
|
DB3 DUBLIN (METRO), IRELAND
|
—
|
|
3,334
|
|
54,387
|
|
294
|
|
14,917
|
|
3,628
|
|
69,304
|
|
(11,434)
|
|
N/A
|
|
2016
|
DB4 DUBLIN (METRO), IRELAND
|
—
|
|
—
|
|
26,875
|
|
—
|
|
15,608
|
|
—
|
|
42,483
|
|
(5,134)
|
|
N/A
|
|
2016
|
DU1 DÜSSELDORF (METRO), GERMANY
|
—
|
|
—
|
|
—
|
|
8,287
|
|
29,641
|
|
8,287
|
|
29,641
|
|
(18,951)
|
|
2001
|
|
2000
|
DX1 DUBAI (METRO), UNITED ARAB EMIRATES
|
—
|
|
—
|
|
—
|
|
—
|
|
87,891
|
|
—
|
|
87,891
|
|
(16,550)
|
|
2012
|
|
2008
|
DX2 DUBAI (METRO), UNITED ARAB EMIRATES
|
—
|
|
—
|
|
—
|
|
—
|
|
569
|
|
—
|
|
569
|
|
(100)
|
|
N/A
|
|
2017
|
EN1 ENSCHEDE (METRO), THE NETHERLANDS
|
—
|
|
—
|
|
—
|
|
—
|
|
30,140
|
|
—
|
|
30,140
|
|
(18,843)
|
|
2008
|
|
2008
|
FR1 FRANKFURT (METRO), GERMANY
|
—
|
|
—
|
|
—
|
|
—
|
|
4,189
|
|
—
|
|
4,189
|
|
(3,679)
|
|
N/A
|
|
2007
|
FR2 FRANKFURT (METRO), GERMANY
|
—
|
|
—
|
|
—
|
|
12,547
|
|
425,473
|
|
12,547
|
|
425,473
|
|
(110,194)
|
|
N/A
|
|
2007
|
FR4 FRANKFURT (METRO), GERMANY
|
—
|
|
11,578
|
|
9,307
|
|
1,023
|
|
76,784
|
|
12,601
|
|
86,091
|
|
(25,959)
|
|
2009
|
|
2009
|
FR5 FRANKFURT (METRO), GERMANY
|
30,310
|
|
—
|
|
—
|
|
4,044
|
|
164,611
|
|
4,044
|
|
164,611
|
|
(34,108)
|
|
2012
|
|
2012
|
FR6 FRANKFURT (METRO), GERMANY
|
—
|
|
—
|
|
—
|
|
—
|
|
135,960
|
|
—
|
|
135,960
|
|
(8,885)
|
|
2016
|
|
2016
|
FR7 FRANKFURT (METRO), GERMANY
|
—
|
|
—
|
|
43,634
|
|
—
|
|
20,621
|
|
—
|
|
64,255
|
|
(13,072)
|
|
N/A
|
|
2016
|
GV1 GENEVA (METRO), SWITZERLAND
|
—
|
|
—
|
|
—
|
|
—
|
|
8,798
|
|
—
|
|
8,798
|
|
(3,634)
|
|
2004
|
|
2004
|
GV2 GENEVA (METRO), SWITZERLAND
|
—
|
|
—
|
|
—
|
|
—
|
|
23,328
|
|
—
|
|
23,328
|
|
(19,817)
|
|
2010
|
|
2009
|
HE1 HELSINKI (METRO), FINLAND
|
—
|
|
—
|
|
—
|
|
—
|
|
3,486
|
|
—
|
|
3,486
|
|
(1,887)
|
|
N/A
|
|
2016
|
HE2 HELSINKI (METRO), FINLAND
|
—
|
|
—
|
|
—
|
|
—
|
|
1,554
|
|
—
|
|
1,554
|
|
(1,297)
|
|
N/A
|
|
2016
|
HE3 HELSINKI (METRO), FINLAND
|
—
|
|
—
|
|
—
|
|
—
|
|
13,019
|
|
—
|
|
13,019
|
|
(7,227)
|
|
N/A
|
|
2016
|
HE4 HELSINKI (METRO), FINLAND
|
—
|
|
—
|
|
29,092
|
|
—
|
|
6,383
|
|
—
|
|
35,475
|
|
(9,726)
|
|
N/A
|
|
2016
|
HE5 HELSINKI (METRO), FINLAND
|
—
|
|
—
|
|
7,564
|
|
—
|
|
5,089
|
|
—
|
|
12,653
|
|
(2,991)
|
|
N/A
|
|
2016
|
HE6 HELSINKI (METRO), FINLAND
|
—
|
|
—
|
|
17,204
|
|
1,604
|
|
25,004
|
|
1,604
|
|
42,208
|
|
(5,811)
|
|
N/A
|
|
2016
|
HE7 HELSINKI (METRO), FINLAND
|
—
|
|
7,348
|
|
6,946
|
|
—
|
|
3,573
|
|
7,348
|
|
10,519
|
|
(537)
|
|
N/A
|
|
2018
|
|
Initial Costs to Company
(1)
|
|
Costs Capitalized Subsequent to Acquisition or Lease
|
|
Total Costs
|
|
|
||||||||||||
|
Encumbrances
|
|
Land
|
|
Buildings and Improvements
(2)
|
|
Land
|
|
Buildings and Improvements
(2)
|
|
Land
|
|
Buildings and Improvements
(2)
|
|
Accumulated Depreciation
(3)
|
|
Date of Construction
|
|
Date of Acquisition or Lease
(4)
|
HH1 HAMBURG (METRO), GERMANY
|
—
|
|
3,612
|
|
5,360
|
|
—
|
|
—
|
|
3,612
|
|
5,360
|
|
—
|
|
N/A
|
|
2018
|
IS1 ISTANBUL (METRO), TURKEY
|
—
|
|
—
|
|
—
|
|
—
|
|
6,412
|
|
—
|
|
6,412
|
|
(4,416)
|
|
N/A
|
|
2016
|
IL2 ISTANBUL (METRO), TURKEY
|
—
|
|
14,460
|
|
39,289
|
|
—
|
|
9,778
|
|
14,460
|
|
49,067
|
|
(1,646)
|
|
N/A
|
|
2017
|
LD3 LONDON (METRO), UNITED KINGDOM
|
—
|
|
—
|
|
—
|
|
—
|
|
16,666
|
|
—
|
|
16,666
|
|
(13,366)
|
|
2005
|
|
2000
|
LD4 LONDON (METRO), UNITED KINGDOM
|
—
|
|
—
|
|
23,044
|
|
—
|
|
111,645
|
|
—
|
|
134,689
|
|
(38,277)
|
|
2007
|
|
2007
|
LD5 LONDON (METRO), UNITED KINGDOM
|
—
|
|
—
|
|
16,412
|
|
—
|
|
173,477
|
|
—
|
|
189,889
|
|
(76,880)
|
|
2010
|
|
2010
|
LD6 LONDON (METRO), UNITED KINGDOM
|
—
|
|
—
|
|
—
|
|
—
|
|
131,113
|
|
—
|
|
131,113
|
|
(18,714)
|
|
2015
|
|
2013
|
LD7 LONDON (METRO), UNITED KINGDOM
|
—
|
|
—
|
|
—
|
|
—
|
|
80,257
|
|
—
|
|
80,257
|
|
(4)
|
|
2018
|
|
2018
|
LD8 LONDON (METRO), UNITED KINGDOM
|
—
|
|
—
|
|
107,544
|
|
—
|
|
26,273
|
|
—
|
|
133,817
|
|
(22,468)
|
|
N/A
|
|
2016
|
LD9 LONDON (METRO), UNITED KINGDOM
|
—
|
|
—
|
|
181,431
|
|
—
|
|
77,537
|
|
—
|
|
258,968
|
|
(36,890)
|
|
N/A
|
|
2016
|
LD10 LONDON (METRO), UNITED KINGDOM
|
—
|
|
—
|
|
40,251
|
|
—
|
|
103,274
|
|
—
|
|
143,525
|
|
(6,805)
|
|
N/A
|
|
2017
|
LS1 LISBON (METRO), PORTUGAL
|
—
|
|
—
|
|
7,374
|
|
3,540
|
|
2,036
|
|
3,540
|
|
9,410
|
|
(1,234)
|
|
2017
|
|
2017
|
MA1 MANCHESTER (METRO), UNITED KINGDOM
|
—
|
|
—
|
|
—
|
|
—
|
|
8,136
|
|
—
|
|
8,136
|
|
(2,674)
|
|
N/A
|
|
2016
|
MA2 MANCHESTER (METRO), UNITED KINGDOM
|
—
|
|
—
|
|
—
|
|
—
|
|
10,038
|
|
—
|
|
10,038
|
|
(3,983)
|
|
N/A
|
|
2016
|
MA3 MANCHESTER (METRO), UNITED KINGDOM
|
—
|
|
—
|
|
44,931
|
|
—
|
|
5,147
|
|
—
|
|
50,078
|
|
(14,266)
|
|
N/A
|
|
2016
|
MA4 MANCHESTER (METRO), UNITED KINGDOM
|
—
|
|
—
|
|
6,697
|
|
—
|
|
1,639
|
|
—
|
|
8,336
|
|
(4,778)
|
|
N/A
|
|
2016
|
MD1 MADRID (METRO), SPAIN
|
—
|
|
—
|
|
7,917
|
|
—
|
|
—
|
|
—
|
|
7,917
|
|
(1,766)
|
|
N/A
|
|
2017
|
MD2 MADRID (METRO), SPAIN
|
—
|
|
—
|
|
40,952
|
|
—
|
|
13,829
|
|
—
|
|
54,781
|
|
(10,453)
|
|
N/A
|
|
2017
|
ML2 MILAN (METRO), ITALY
|
—
|
|
—
|
|
—
|
|
—
|
|
18,270
|
|
—
|
|
18,270
|
|
(5,538)
|
|
N/A
|
|
2016
|
ML3 MILAN (METRO), ITALY
|
—
|
|
—
|
|
—
|
|
3,639
|
|
39,064
|
|
3,639
|
|
39,064
|
|
(9,830)
|
|
N/A
|
|
2016
|
ML4 MLAN (METRO), ITALY
|
—
|
|
—
|
|
—
|
|
—
|
|
8,218
|
|
—
|
|
8,218
|
|
(3,628)
|
|
N/A
|
|
2016
|
MU1 MUNICH (METRO), GERMANY
|
—
|
|
—
|
|
—
|
|
—
|
|
23,757
|
|
—
|
|
23,757
|
|
(14,145)
|
|
N/A
|
|
2007
|
MU3 MUNICH (METRO), GERMANY
|
—
|
|
—
|
|
—
|
|
—
|
|
2,525
|
|
—
|
|
2,525
|
|
(1,210)
|
|
2010
|
|
2010
|
PA1 PARIS (METRO), FRANCE
|
—
|
|
—
|
|
—
|
|
—
|
|
31,246
|
|
—
|
|
31,246
|
|
(21,338)
|
|
N/A
|
|
2007
|
PA2 & PA3 PARIS (METRO), FRANCE
|
—
|
|
—
|
|
29,615
|
|
25,820
|
|
283,451
|
|
25,820
|
|
313,066
|
|
(112,946)
|
|
2010
|
|
2007
|
PA4 PARIS (METRO), FRANCE
|
—
|
|
1,701
|
|
9,503
|
|
150
|
|
226,529
|
|
1,851
|
|
236,032
|
|
(51,667)
|
|
2012
|
|
2011
|
PA5 PARIS (METRO), FRANCE
|
—
|
|
—
|
|
16,554
|
|
—
|
|
3,299
|
|
—
|
|
19,853
|
|
(4,455)
|
|
N/A
|
|
2016
|
PA6 PARIS (METRO), FRANCE
|
—
|
|
—
|
|
—
|
|
—
|
|
64,821
|
|
—
|
|
64,821
|
|
(19,377)
|
|
N/A
|
|
2016
|
PA7 PARIS (METRO), FRANCE
|
—
|
|
—
|
|
—
|
|
—
|
|
17,399
|
|
—
|
|
17,399
|
|
(5,632)
|
|
N/A
|
|
2016
|
|
Initial Costs to Company
(1)
|
|
Costs Capitalized Subsequent to Acquisition or Lease
|
|
Total Costs
|
|
|
||||||||||||
|
Encumbrances
|
|
Land
|
|
Buildings and Improvements
(2)
|
|
Land
|
|
Buildings and Improvements
(2)
|
|
Land
|
|
Buildings and Improvements
(2)
|
|
Accumulated Depreciation
(3)
|
|
Date of Construction
|
|
Date of Acquisition or Lease
(4)
|
PA8 PARIS (METRO), FRANCE
|
—
|
|
—
|
|
—
|
|
—
|
|
47,649
|
|
—
|
|
47,649
|
|
—
|
|
2018
|
|
2018
|
SA1 SEVILLE (METRO), SPAIN
|
—
|
|
—
|
|
1,567
|
|
—
|
|
—
|
|
—
|
|
1,567
|
|
(905)
|
|
N/A
|
|
2017
|
SK1 STOCKHOLM, (METRO), SWEDEN
|
—
|
|
—
|
|
15,495
|
|
—
|
|
6,283
|
|
—
|
|
21,778
|
|
(5,665)
|
|
N/A
|
|
2016
|
SK2 STOCKHOLM, (METRO), SWEDEN
|
—
|
|
—
|
|
80,148
|
|
7,117
|
|
46,719
|
|
7,117
|
|
126,867
|
|
(14,764)
|
|
N/A
|
|
2016
|
SK3 STOCKHOLM, (METRO), SWEDEN
|
—
|
|
—
|
|
—
|
|
—
|
|
14,556
|
|
—
|
|
14,556
|
|
(2,878)
|
|
N/A
|
|
2016
|
SO1 SOFIA (METRO), BULGARIA
|
—
|
|
—
|
|
5,236
|
|
—
|
|
1,547
|
|
—
|
|
6,783
|
|
(1,270)
|
|
N/A
|
|
2016
|
SO2 SOFIA (METRO), BULGARIA
|
—
|
|
2,775
|
|
—
|
|
—
|
|
8,814
|
|
2,775
|
|
8,814
|
|
—
|
|
N/A
|
|
2017
|
WA1 WARSAW (METRO), POLAND
|
—
|
|
—
|
|
5,950
|
|
—
|
|
7,138
|
|
—
|
|
13,088
|
|
(4,007)
|
|
N/A
|
|
2016
|
WA2 WARSAW (METRO), POLAND
|
—
|
|
—
|
|
4,709
|
|
—
|
|
7,833
|
|
—
|
|
12,542
|
|
(2,546)
|
|
N/A
|
|
2016
|
WA3 WARSAW (METRO), POLAND
|
—
|
|
2,819
|
|
—
|
|
—
|
|
6,705
|
|
2,819
|
|
6,705
|
|
(1)
|
|
N/A
|
|
2017
|
ZH1 ZURICH (METRO), SWITZERLAND
|
—
|
|
—
|
|
—
|
|
—
|
|
12
|
|
—
|
|
12
|
|
—
|
|
N/A
|
|
2007
|
ZH2 ZURICH (METRO), SWITZERLAND
|
—
|
|
—
|
|
—
|
|
—
|
|
3,323
|
|
—
|
|
3,323
|
|
(2,543)
|
|
2003
|
|
2002
|
ZH4 ZURICH (METRO), SWITZERLAND
|
—
|
|
—
|
|
11,284
|
|
—
|
|
31,778
|
|
—
|
|
43,062
|
|
(26,376)
|
|
2010
|
|
2009
|
ZH5 ZURICH (METRO), SWITZERLAND
|
—
|
|
—
|
|
—
|
|
7,918
|
|
88,981
|
|
7,918
|
|
88,981
|
|
(18,350)
|
|
2013
|
|
2009
|
ZW1 ZWOLLE (METRO), THE NETHERLANDS
|
—
|
|
—
|
|
—
|
|
—
|
|
9,860
|
|
—
|
|
9,860
|
|
(5,925)
|
|
2008
|
|
2008
|
OTHERS
(5)
|
—
|
|
16,933
|
|
7,018
|
|
16,149
|
|
24,847
|
|
33,082
|
|
31,865
|
|
(4,005)
|
|
Various
|
|
Various
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia-Pacific:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AE1 ADELAIDE (METRO), AUSTRALIA
|
—
|
|
2,663
|
|
1,015
|
|
—
|
|
745
|
|
2,663
|
|
1,760
|
|
(148)
|
|
N/A
|
|
2018
|
BR1 BRISBANE (METRO), AUSTRALIA
|
—
|
|
3,170
|
|
1,053
|
|
—
|
|
827
|
|
3,170
|
|
1,880
|
|
(68)
|
|
N/A
|
|
2018
|
CA1 CANBERRA (METRO), AUSTRALIA
|
—
|
|
—
|
|
18,410
|
|
—
|
|
321
|
|
—
|
|
18,731
|
|
(573)
|
|
N/A
|
|
2018
|
HK1 HONG KONG (METRO), CHINA
|
—
|
|
—
|
|
—
|
|
—
|
|
147,895
|
|
—
|
|
147,895
|
|
(87,393)
|
|
N/A
|
|
2003
|
HK2 HONG KONG (METRO), CHINA
|
—
|
|
—
|
|
—
|
|
—
|
|
285,083
|
|
—
|
|
285,083
|
|
(99,612)
|
|
2011
|
|
2010
|
HK3 HONG KONG (METRO), CHINA
|
—
|
|
—
|
|
—
|
|
—
|
|
134,081
|
|
—
|
|
134,081
|
|
(60,527)
|
|
N/A
|
|
2012
|
HK4 HONG KONG (METRO), CHINA
|
—
|
|
—
|
|
—
|
|
—
|
|
10,593
|
|
—
|
|
10,593
|
|
(5,818)
|
|
N/A
|
|
2012
|
HK5 HONG KONG (METRO), CHINA
|
—
|
|
—
|
|
70,002
|
|
—
|
|
38,903
|
|
—
|
|
108,905
|
|
(4,225)
|
|
2017
|
|
2017
|
ME1 MELBOURNE (METRO), AUSTRALIA
|
—
|
|
14,977
|
|
—
|
|
—
|
|
81,609
|
|
14,977
|
|
81,609
|
|
(13,909)
|
|
2013
|
|
2013
|
ME2 MELBOURNE (METRO), AUSTRALIA
|
—
|
|
—
|
|
—
|
|
—
|
|
25,141
|
|
—
|
|
25,141
|
|
—
|
|
N/A
|
|
2018
|
|
Initial Costs to Company
(1)
|
|
Costs Capitalized Subsequent to Acquisition or Lease
|
|
Total Costs
|
|
|
||||||||||||
|
Encumbrances
|
|
Land
|
|
Buildings and Improvements
(2)
|
|
Land
|
|
Buildings and Improvements
(2)
|
|
Land
|
|
Buildings and Improvements
(2)
|
|
Accumulated Depreciation
(3)
|
|
Date of Construction
|
|
Date of Acquisition or Lease
(4)
|
ME4 MELBOURNE (METRO), AUSTRALIA
|
—
|
|
3,437
|
|
84,175
|
|
—
|
|
2,499
|
|
3,437
|
|
86,674
|
|
(4,407)
|
|
N/A
|
|
2018
|
ME5 MELBOURNE (METRO), AUSTRALIA
|
—
|
|
6,678
|
|
4,094
|
|
—
|
|
1,586
|
|
6,678
|
|
5,680
|
|
(445)
|
|
N/A
|
|
2018
|
OS1 OSAKA (METRO), JAPAN
|
—
|
|
—
|
|
14,876
|
|
—
|
|
66,296
|
|
—
|
|
81,172
|
|
(18,931)
|
|
2013
|
|
2013
|
PE1 PERTH (METRO), AUSTRALIA
|
—
|
|
1,352
|
|
1,337
|
|
—
|
|
363
|
|
1,352
|
|
1,700
|
|
(64)
|
|
N/A
|
|
2018
|
PE2 PERTH (METRO), AUSTRALIA
|
—
|
|
—
|
|
16,327
|
|
—
|
|
5,685
|
|
—
|
|
22,012
|
|
(1,129)
|
|
N/A
|
|
2018
|
SG1 SINGAPORE (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
177,270
|
|
—
|
|
177,270
|
|
(111,655)
|
|
N/A
|
|
2003
|
SG2 SINGAPORE (METRO)
|
—
|
|
—
|
|
—
|
|
—
|
|
333,964
|
|
—
|
|
333,964
|
|
(164,156)
|
|
2008
|
|
2008
|
SG3 SINGAPORE (METRO)
|
—
|
|
—
|
|
34,844
|
|
—
|
|
196,081
|
|
—
|
|
230,925
|
|
(29,083)
|
|
2013
|
|
2013
|
SH2 SHANGHAI (METRO), CHINA
|
—
|
|
—
|
|
—
|
|
—
|
|
4,529
|
|
—
|
|
4,529
|
|
(1,643)
|
|
2012
|
|
2012
|
SH3 SHANGHAI (METRO), CHINA
|
—
|
|
—
|
|
7,066
|
|
—
|
|
10,137
|
|
—
|
|
17,203
|
|
(5,075)
|
|
2012
|
|
2012
|
SH5 SHANGHAI (METRO), CHINA
|
—
|
|
—
|
|
11,284
|
|
—
|
|
20,792
|
|
—
|
|
32,076
|
|
(9,650)
|
|
2012
|
|
2012
|
SH6 SHANGHAI (METRO), CHINA
|
—
|
|
—
|
|
16,545
|
|
—
|
|
25,353
|
|
—
|
|
41,898
|
|
(2)
|
|
N/A
|
|
2017
|
SY1 SYDNEY (METRO), AUSTRALIA
|
—
|
|
—
|
|
—
|
|
—
|
|
25,435
|
|
—
|
|
25,435
|
|
(14,709)
|
|
N/A
|
|
2003
|
SY2 SYDNEY (METRO), AUSTRALIA
|
—
|
|
—
|
|
3,080
|
|
—
|
|
32,721
|
|
—
|
|
35,801
|
|
(21,601)
|
|
2008
|
|
2008
|
SY3 SYDNEY (METRO), AUSTRALIA
|
—
|
|
—
|
|
8,712
|
|
—
|
|
140,590
|
|
—
|
|
149,302
|
|
(60,057)
|
|
2010
|
|
2010
|
SY4 SYDNEY (METRO), AUSTRALIA
|
—
|
|
—
|
|
—
|
|
—
|
|
142,633
|
|
—
|
|
142,633
|
|
(18,167)
|
|
2015
|
|
2014
|
SY5 SYDNEY (METRO), AUSTRALIA
|
—
|
|
82,372
|
|
—
|
|
—
|
|
56,969
|
|
82,372
|
|
56,969
|
|
—
|
|
N/A
|
|
2018
|
SY6 SYDNEY (METRO), AUSTRALIA
|
—
|
|
8,890
|
|
64,197
|
|
—
|
|
1,889
|
|
8,890
|
|
66,086
|
|
(2,283)
|
|
N/A
|
|
2018
|
SY7 SYDNEY (METRO), AUSTRALIA
|
—
|
|
2,754
|
|
47,350
|
|
—
|
|
1,335
|
|
2,754
|
|
48,685
|
|
(1,612)
|
|
N/A
|
|
2018
|
SY8 SYDNEY (METRO), AUSTRALIA
|
—
|
|
—
|
|
1,073
|
|
—
|
|
161
|
|
—
|
|
1,234
|
|
(190)
|
|
N/A
|
|
2018
|
TY1 TOKYO (METRO), JAPAN
|
—
|
|
—
|
|
—
|
|
—
|
|
22,793
|
|
—
|
|
22,793
|
|
(13,513)
|
|
2000
|
|
2000
|
TY2 TOKYO (METRO), JAPAN
|
—
|
|
—
|
|
—
|
|
—
|
|
85,585
|
|
—
|
|
85,585
|
|
(61,682)
|
|
2007
|
|
2006
|
TY3 TOKYO (METRO), JAPAN
|
—
|
|
—
|
|
—
|
|
—
|
|
75,837
|
|
—
|
|
75,837
|
|
(35,231)
|
|
2010
|
|
2010
|
TY4 TOKYO (METRO), JAPAN
|
—
|
|
—
|
|
—
|
|
—
|
|
56,585
|
|
—
|
|
56,585
|
|
(20,562)
|
|
2012
|
|
2012
|
TY5 TOKYO (METRO), JAPAN
|
—
|
|
—
|
|
102
|
|
—
|
|
56,973
|
|
—
|
|
57,075
|
|
(8,431)
|
|
2014
|
|
2014
|
TY6 TOKYO (METRO), JAPAN
|
—
|
|
—
|
|
37,941
|
|
—
|
|
18,779
|
|
—
|
|
56,720
|
|
(19,544)
|
|
N/A
|
|
2015
|
TY7 TOKYO (METRO), JAPAN
|
—
|
|
—
|
|
13,175
|
|
—
|
|
5,253
|
|
—
|
|
18,428
|
|
(8,356)
|
|
N/A
|
|
2015
|
TY8 TOKYO (METRO), JAPAN
|
—
|
|
—
|
|
53,848
|
|
—
|
|
13,256
|
|
—
|
|
67,104
|
|
(16,874)
|
|
N/A
|
|
2015
|
TY9 TOKYO (METRO), JAPAN
|
—
|
|
—
|
|
106,710
|
|
—
|
|
24,877
|
|
—
|
|
131,587
|
|
(40,361)
|
|
N/A
|
|
2015
|
TY10 TOKYO (METRO), JAPAN
|
—
|
|
—
|
|
69,881
|
|
—
|
|
15,842
|
|
—
|
|
85,723
|
|
(15,387)
|
|
N/A
|
|
2015
|
TY11 TOKYO (METRO), JAPAN
|
—
|
|
—
|
|
22,099
|
|
—
|
|
32,931
|
|
—
|
|
55,030
|
|
(1)
|
|
2018
|
|
2018
|
TY12 TOKYO (METRO), JAPAN
|
—
|
|
10,285
|
|
—
|
|
—
|
|
1,001
|
|
10,285
|
|
1,001
|
|
—
|
|
N/A
|
|
2018
|
OTHERS
(5)
|
—
|
|
12,022
|
|
875
|
|
—
|
|
12,500
|
|
12,022
|
|
13,375
|
|
(7,600)
|
|
Various
|
|
Various
|
TOTAL LOCATIONS
|
$30,310
|
|
$492,431
|
|
$3,675,228
|
|
$138,101
|
|
$10,714,438
|
|
$630,532
|
|
$14,389,666
|
|
$(4,517,016)
|
|
|
|
|
|
(1)
|
The initial cost was
$0
if the lease of the respective IBX was classified as an operating lease.
|
(2)
|
Building and improvements include all fixed assets except for land.
|
(3)
|
Buildings and improvements are depreciated on a straight line basis over estimated useful live as described under described in Note 1 of the Notes to Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K.
|
(4)
|
Date of lease or acquisition represents the date the Company leased the facility or acquired the facility through purchase or acquisition.
|
(5)
|
Includes various IBXs that are under initial development and costs incurred at certain central locations supporting various IBX functions.
|
|
2018
|
|
2017
|
|
2016
|
||||||
Balance, beginning of period
|
$
|
12,947,735
|
|
|
$
|
9,855,811
|
|
|
$
|
7,871,890
|
|
Additions (including acquisitions and improvements)
|
2,756,218
|
|
|
2,508,333
|
|
|
2,187,306
|
|
|||
Disposals
|
(289,157
|
)
|
|
(78,886
|
)
|
|
(78,607
|
)
|
|||
Foreign currency transaction adjustments and others
|
(394,598
|
)
|
|
662,477
|
|
|
(124,778
|
)
|
|||
Balance, end of year
|
$
|
15,020,198
|
|
|
$
|
12,947,735
|
|
|
$
|
9,855,811
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Balance, beginning of period
|
$
|
(3,980,198
|
)
|
|
$
|
(3,175,972
|
)
|
|
$
|
(2,595,648
|
)
|
Additions (depreciation expense)
|
(882,848
|
)
|
|
(748,942
|
)
|
|
(618,970
|
)
|
|||
Disposals
|
261,928
|
|
|
65,922
|
|
|
9,401
|
|
|||
Foreign currency transaction adjustments and others
|
84,102
|
|
|
(121,206
|
)
|
|
29,245
|
|
|||
Balance, end of year
|
$
|
(4,517,016
|
)
|
|
$
|
(3,980,198
|
)
|
|
$
|
(3,175,972
|
)
|
Entity
|
Jurisdiction
|
Equinix (Australia) Enterprises Holdings Pty Limited
|
Australia
|
Equinix (Australia) Enterprises Pty Limited
|
Australia
|
Equinix Australia Pty Limited
|
Australia
|
McLaren Pty Limited
|
Australia
|
Metronode (ACT) Pty Limited
|
Australia
|
Metronode (NSW) Pty Ltd
|
Australia
|
Metronode C1 Pty Limited
|
Australia
|
Metronode Group Pty Limited
|
Australia
|
Metronode Investments Pty Limited
|
Australia
|
Metronode M2 Pty Ltd
|
Australia
|
Metronode P2 Pty Limited
|
Australia
|
MGH Pegasus Pty Ltd
|
Australia
|
Equinix Australia National Pty. Ltd.
|
Australia
|
Metronode S2 Pty Ltd
|
Australia
|
MGH Bidco Pty Limited
|
Australia
|
MGH Finco Pty Limited
|
Australia
|
MGH Holdco Pty Ltd
|
Australia
|
McLaren Unit Trust
|
Australia
|
Equinix do Brasil Soluções de Tecnologia em Informática Ltda.
|
Brazil
|
Equinix do Brasil Telecomunicações Ltda.
|
Brazil
|
Equinix Colombia, Inc.
|
British Virgin Islands
|
Equinix (Bulgaria) Data Centers EAD
|
Bulgaria
|
Equinix (Canada) Enterprises Ltd.
|
Canada
|
Equinix Canada Ltd.
|
Canada
|
Equinix (Cayman) Holdings Limited
|
Cayman Islands
|
CHI 3, LLC
|
Delaware, U.S.
|
DCI Management, Inc.
|
Delaware, U.S.
|
DCI Tech Holdings Infomart, LLLP
|
Delaware, U.S.
|
EPS Enterprises, Inc.
|
Delaware, U.S.
|
Equinix (EMEA) Management, Inc.
|
Delaware, U.S.
|
Equinix (Government) LLC
|
Delaware, U.S.
|
Equinix (US) Enterprises, Inc.
|
Delaware, U.S.
|
Equinix (Velocity) Holding Company
|
Delaware, U.S.
|
Equinix Impact LLC
|
Delaware, U.S.
|
Equinix LLC
|
Delaware, U.S.
|
Entity
|
Jurisdiction
|
Equinix Pacific LLC
|
Delaware, U.S.
|
Equinix Professional Services, Inc.
|
Delaware, U.S.
|
Equinix Government Solutions LLC
|
Delaware, U.S.
|
Equinix RP II LLC
|
Delaware, U.S.
|
Equinix South America Holdings, LLC
|
Delaware, U.S.
|
Infomart Dallas GP, LLC
|
Delaware, U.S.
|
Infomart Dallas, LP
|
Delaware, U.S.
|
Infomart Holdings, LLC
|
Delaware, U.S.
|
Infomart Venture, LLC
|
Delaware, U.S.
|
LA4, LLC
|
Delaware, U.S.
|
Moran Road Partners, LLC
|
Delaware, U.S.
|
NY2 Hartz Way, LLC
|
Delaware, U.S.
|
SV1, LLC
|
Delaware, U.S.
|
Switch & Data Facilities Company LLC
|
Delaware, U.S.
|
Switch & Data LLC
|
Delaware, U.S.
|
Switch & Data MA One LLC
|
Delaware, U.S.
|
Switch & Data WA One LLC
|
Delaware, U.S.
|
Switch & Data/NY Facilities Company LLC
|
Delaware, U.S.
|
Switch and Data CA Nine LLC
|
Delaware, U.S.
|
Switch And Data NJ Two LLC
|
Delaware, U.S.
|
Switch and Data Operating Company LLC
|
Delaware, U.S.
|
Switch and Data VA Four LLC
|
Delaware, U.S.
|
VDC I, LLC
|
Delaware, U.S.
|
VDC II, LLC
|
Delaware, U.S.
|
VDC III, LLC
|
Delaware, U.S.
|
VDC IV, LLC
|
Delaware, U.S.
|
VDC V, LLC
|
Delaware, U.S.
|
VDC VI, LLC
|
Delaware, U.S.
|
VDC VII, LLC
|
Delaware, U.S.
|
VDC VIII, LLC
|
Delaware, U.S.
|
Equinix Hyperscale (LP) LLC
|
Delaware, U.S.
|
Equinix Hyperscale (GP) LLC
|
Delaware, U.S.
|
Equinix (Finland) Enterprises Oy
|
Finland
|
Equinix (Finland) Oy
|
Finland
|
Equinix (France) Enterprises SAS
|
France
|
Equinix (Real Estate) Holdings SC
|
France
|
Equinix (Real Estate) SCI
|
France
|
Equinix France SAS
|
France
|
Equinix (Germany) Enterprises GmbH
|
Germany
|
Entity
|
Jurisdiction
|
Equinix (Germany) GmbH
|
Germany
|
Equinix (Real Estate) GmbH
|
Germany
|
Upminster GmbH
|
Germany
|
Equinix (Hong Kong) Enterprises Limited
|
Hong Kong
|
Equinix Hong Kong Limited
|
Hong Kong
|
CHI 3 Procurement, LLC
|
Illinois, U.S.
|
Equinix (Ireland) Enterprises Limited
|
Ireland
|
Equinix (Ireland) Limited
|
Ireland
|
Equinix (Italia) Enterprises S.r.l.
|
Italy
|
Equinix Italia S.r.l.
|
Italy
|
Open Hub Med Societa Consortile a responsabilita limitata
|
Italy
|
Equinix (Japan) Enterprises K.K.
|
Japan
|
Equinix (Japan) Technology Services K.K.
|
Japan
|
Equinix Japan K.K. (in Kanji)
|
Japan
|
Metronode New Zealand Limited
|
New Zealand
|
Equinix Muscat LLC
|
Oman
|
Equinix (China) Investment Holding Co., Ltd
(亿利互连(中国)投资有限公司) |
People’s Republic of China
|
Equinix Information Technology (Shanghai) Co., Ltd.
(亿利互连信息技术(上海)有限公司) |
People’s Republic of China
|
Equinix WGQ Information Technology (Shanghai) Co., Ltd.
|
People’s Republic of China
|
Equinix YP Information Technology (Shanghai) Co., Ltd.
(亿利互连数据系统(上海)有限公司) |
People’s Republic of China
|
Gaohong Equinix (Shanghai) Information Technology Co., Ltd (高鸿亿利(上海)信息技术有限公司)
|
People’s Republic of China
|
Equinix (Poland) Technology Services sp. z o.o.
|
Poland
|
Equinix (Poland) Enterprises sp. z o.o.
|
Poland
|
Equinix (Poland) sp. z o.o.
|
Poland
|
Equinix (Portugal) Data Centers, S.A.
|
Portugal
|
Equinix II (Portugal) Enterprises Data Centers, Unipessoal Lda
|
Portugal
|
Equinix Korea LLC
|
Republic of Korea
|
Equinix (Singapore) Enterprises Pte. Ltd.
|
Singapore
|
Equinix Asia Pacific Holdings Pte. Ltd.
|
Singapore
|
Equinix Asia Pacific Pte. Ltd.
|
Singapore
|
Equinix Singapore Holdings Pte. Ltd.
|
Singapore
|
Equinix Singapore Pte. Ltd.
|
Singapore
|
Equinix (Spain) Enterprises, S.L.U.
|
Spain
|
Equinix (Spain), S.A.U.
|
Spain
|
TelecityGroup Spain S.A.
|
Spain
|
Equinix (Sweden) AB
|
Sweden
|
Entity
|
Jurisdiction
|
Equinix (Sweden) Enterprises AB
|
Sweden
|
Kvastvägen Fastighets AB
|
Sweden
|
Equinix (Switzerland) Enterprises GmbH
|
Switzerland
|
Equinix (Switzerland) GmbH
|
Switzerland
|
EMEA Hyperscale 1 C.V.
|
The Netherlands
|
Equinix Hyperscale 1 Holdings B.V.
|
The Netherlands
|
Equinix (EMEA) Acquisition Enterprises B.V.
|
The Netherlands
|
Equinix (EMEA) B.V.
|
The Netherlands
|
Equinix (Netherlands) B.V.
|
The Netherlands
|
Equinix (Netherlands) Enterprises B.V.
|
The Netherlands
|
Equinix (Netherlands) Holdings B.V.
|
The Netherlands
|
Equinix (Real Estate) B.V.
|
The Netherlands
|
Virtu Secure Webservices B.V.
|
The Netherlands
|
Equinix Turkey Data Merkezi Üretim Inşaat Sanayi ve Ticaret Anonim Şirketi
|
Turkey
|
Equinix Turkey Enterprises Data Merkezi Üretim Inşaat Sanayi ve Ticaret Anonim Şirketi
|
Turkey
|
Equinix Turkey Internet Hizmetleri Anonim Sirketi
|
Turkey
|
Equinix Middle East FZ-LLC
|
United Arab Emirates
|
Equinix Hyperscale 1 (LD11) Ltd.
|
United Kingdom
|
Equinix (Services) Limited
|
United Kingdom
|
Equinix (UK) Acquisition Enterprises Limited
|
United Kingdom
|
Equinix (UK) Enterprises Ltd.
|
United Kingdom
|
Equinix (UK) Limited
|
United Kingdom
|
Telecity Group Limited
|
United Kingdom
|
TelecityGroup Holdings Ltd.
|
United Kingdom
|
TelecityGroup International Ltd.
|
United Kingdom
|
TelecityGroup Investments Ltd.
|
United Kingdom
|
TelecityGroup UK Ltd.
|
United Kingdom
|