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What changed in Iron Mountain's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Iron Mountain's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+297 added−363 removedSource: 10-K (2025-02-14) vs 10-K (2024-02-22)

Top changes in Iron Mountain's 2024 10-K

297 paragraphs added · 363 removed · 246 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

47 edited+19 added−32 removed25 unchanged
Biggest changeAs of 2023, Iron Mountain has over 130 locations across the United States with the ability to track and match renewable energy usage on an hourly basis. • 85% of our global electricity use was from renewable sources in 2022. • Reduced Scope 1 and 2 greenhouse gas (GHG) emissions by 32% compared to our 2016 baseline as part of our net zero by 2040 commitment. • Received 90% or greater on the Human Rights Campaign Corporate Equality Index every year since 2018.
Biggest changeAs of 2024, Iron Mountain has over 190 locations globally with the ability to track and match renewable energy usage on an hourly basis. • 87% of our global electricity use was covered by renewable sources in 2023. • Iron Mountain has near and long-term science-based emissions reduction targets that have been validated by SBTi. • Reduced Scope 1 and 2 greenhouse gas (GHG) emissions by 10% from 2022 to 2023. • Achieved a landfill diversion rate of 81% in 2023, reducing waste to landfill and lowering emissions associated with waste processing.
Costs are comprised of (1) restructuring costs, which include (i) site consolidation and other related exit costs, (ii) employee severance costs and (iii) certain professional fees associated with these activities and (2) other transformation costs, which include professional fees such as project management costs and costs for third party consultants who are assisting in the enablement our growth initiatives.
Costs are comprised of (1) restructuring costs, which include (i) site consolidation and other related exit costs, (ii) employee severance costs and (iii) certain professional fees associated with these activities, and (2) other transformation costs, which include professional fees such as project management costs and costs for third party consultants who are assisting in the enablement of our growth initiatives.
We have an established privacy compliance framework and devote substantial resources, and may in the future have to devote significant additional resources, to facilitate compliance with these laws and regulations, and to investigate, defend or remedy actual or alleged violations or breaches.
We have an established global privacy compliance framework and devote substantial resources, and may in the future have to devote significant additional resources, to facilitate compliance with these laws and regulations, and to investigate, defend or remedy actual or alleged violations or breaches.
BUSINESS SEGMENTS The amount of revenues derived from our business segments and other relevant data, including financial information about geographic areas and product and service lines, for the years ended December 31, 2023, 2022 and 2021, are set forth in Note 11 to Notes to Consolidated Financial Statements included in this Annual Report.
BUSINESS SEGMENTS The amount of revenues derived from our business segments and other relevant data, including financial information about geographic areas and product and service lines, for the years ended December 31, 2024, 2023 and 2022, are set forth in Note 11 to Notes to Consolidated Financial Statements included in this Annual Report.
Comprehensive Information Management Solution As an S&P 500 REIT with approximately 1,400 locations globally and with offerings spanning physical storage, digitization solutions and digital storage, we are positioned to provide a holistic offering to our customers. We are able to cater to our customers’ physical and digital needs and to help guide their digital transformation journey.
Comprehensive Information Management Solution As an S&P 500 REIT with approximately 1,350 locations globally and with offerings spanning physical storage, digitization solutions and digital storage, we are positioned to provide a holistic offering to our customers. We are able to cater to our customers’ physical and digital needs and to help guide their digital transformation journey.
Significant Owner and Operator of Real Estate We operate approximately 98 million square feet of real estate worldwide. Our owned real estate footprint spans to over 23 million square feet. Limited Revenue Cyclicality Historically, economic downturns have not significantly affected our storage rental business.
Significant Owner and Operator of Real Estate We operate approximately 98 million square feet of real estate worldwide. Our owned real estate footprint spans to over 24 million square feet. Limited Revenue Cyclicality Historically, economic downturns have not significantly affected our storage rental business.
GLOBAL RIM BUSINESS The Global Records and Information Management ("Global RIM") Business segment includes several distinct offerings. Records Management, stores physical records and provides information services, vital records services, courier operations, and the collection, handling and disposal of sensitive documents ("Records Management") for customers in 60 countries around the globe.
GLOBAL RIM BUSINESS The Global Records and Information Management ("Global RIM") Business segment includes several distinct offerings. Records Management, stores physical records and provides information services, vital records services, courier operations, and the collection, handling and disposal of sensitive documents ("Records Management") for customers in 61 countries around the globe.
ALM services are enabled by: secure logistics, chain of custody and complete asset traceability practices, environmentally-responsible asset processing and recycling, and data sanitization and asset refurbishment services that enable value recovery through asset remarketing. In addition, ALM also offers workplace IT asset management services including storage, configuration, deployment, device support and end-of-life disposition for employee IT devices.
ALM services are enabled by: secure logistics, chain of custody and complete asset traceability practices, environmentally-responsible asset processing and recycling, and data sanitization and asset refurbishment services that enable value recovery through asset remarketing. In addition, ALM also offers workplace IT asset management services including storage, configuration, deployment, device support, end-of-life disposition and recycling or sale of employee IT devices.
Copies of our corporate governance guidelines, code of ethics and the charters of our audit, compensation, finance, nominating and governance, risk and safety, and technology committees are available on the "Investors" section of our website, www.ironmountain.com , under the heading "Corporate Governance". 8 IRON MOUNTAIN 2023 FORM 10-K Table of Contents Part I
Copies of our corporate governance guidelines, code of ethics and the charters of our audit, compensation, finance, nominating and governance and risk and safety committees are available on the "Investors" section of our website, www.ironmountain.com , under the heading "Corporate Governance". 8 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part I
IRON MOUNTAIN 2023 FORM 10-K 3 Table of Contents Part I BUSINESS ATTRIBUTES Our business has the following attributes: Large, Diversified, Global Business The world’s most heavily regulated organizations trust us with the storage of their records. Our mission-critical storage offerings and related services generated approximately $5.5 billion in annual revenue in 2023.
IRON MOUNTAIN 2024 FORM 10-K 3 Table of Contents Part I BUSINESS ATTRIBUTES Our business has the following attributes: Large, Diversified, Global Business The world’s most heavily regulated organizations trust us with the storage of their records. Our mission-critical storage offerings and related services generated approximately $6.1 billion in annual revenue in 2024.
Our business has a highly diverse customer base of more than 225,000 customers - with no single customer accounting for more than approximately 1% of revenue during the year ended December 31, 2023 - and operates in 60 countries globally. This presents a significant cross-sell opportunity for our expanding solutions, including digital, data center and ALM.
Our business has a highly diverse customer base of more than 240,000 customers - with no single customer accounting for more than approximately 1% of revenue during the year ended December 31, 2024 - and operates in 61 countries globally. This presents a significant cross-sell opportunity for our expanding solutions, including digital, data center and ALM.
These business lines, including Global Data Center, ALM and Consumer Storage, represent markets with strong secular growth. 4 IRON MOUNTAIN 2023 FORM 10-K Table of Contents Part I In addition, our Global Data Center Business has the following attributes: Large Data Center Platform with Significant Expansion Opportunity As of December 31, 2023, we had 250 MW of leasable capacity with an additional 611 MW under construction or held for development.
These business lines, including Global Data Center, ALM and Global Digital Solutions, represent markets with strong, secular growth. 4 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part I In addition, our Global Data Center Business has the following attributes: Large Data Center Platform with Significant Expansion Opportunity As of December 31, 2024, we had 416 MW of leasable capacity with an additional 864 MW under construction or held for development.
With total potential capacity of 861 megawatts ("MW") in land and buildings currently owned or operated by us, we are among the largest global data center operators.
With a total potential capacity of 1,280 MW in land and buildings currently owned or operated by us, we are among the largest global data center operators.
Our ALM services focus on protecting and eradicating customer data while maintaining strong, auditable and transparent chain of custody practices. Corporate and Other also includes costs related to executive and staff functions, including finance, human resources and IT, which benefit the enterprise as a whole.
Our ALM services focus on protecting and eradicating customer data while maintaining strong, auditable and transparent chain of custody practices. Fine Arts, provides technical expertise in the handling, installation and storing of art ("Fine Arts"). Corporate and Other also includes costs related to executive and staff functions, including finance, human resources and IT, which benefit the enterprise as a whole.
IRON MOUNTAIN 2023 FORM 10-K 1 Table of Contents Part I Establishing and maintaining a leadership position in critical digital infrastructure as well as developing and offering new products and services that allow our customers to achieve reliable and secure information management solutions in an increasingly hybrid physical and digital world • We are positioned to take advantage of the secular growth trends of the changing nature of digital infrastructure.
Establishing and maintaining a leadership position in critical digital infrastructure as well as developing and offering new products and services that allow our customers to achieve reliable and secure information management solutions in an increasingly hybrid physical and digital world • We are positioned to take advantage of the secular growth trends of the changing nature of digital infrastructure.
These opportunities include our digital services and our ALM, Entertainment Services, Fine Arts and Consumer Storage (each as defined below) businesses.
These opportunities include our Global Digital Solutions, ALM, Fine Arts and Consumer Storage (each as defined below) businesses.
Utilizing our global scale as well as over 70 years of customer trust to deliver differentiated data center offerings • We have made significant progress in scaling our Global Data Center Business through acquisitions and organic growth, with 26 operating data centers across 21 global markets, either directly or through unconsolidated joint ventures. • As of December 31, 2023, approximately 93% of our data center capacity was leased.
Utilizing our global scale as well as over 70 years of customer trust to deliver differentiated data center offerings • We have made significant progress in scaling our Global Data Center Business through acquisitions and organic growth, with 29 operating data centers across 21 global markets, either directly or through unconsolidated joint ventures. • As of December 31, 2024, we had leased approximately 96% of the existing 416 megawatt ("MW") capacity of our data centers.
Total costs related to Project Matterhorn during the years ended December 31, 2023 and 2022 were approximately $175.2 million and $41.9 million, respectively.
Total costs related to Project Matterhorn during the years ended December 31, 2024 and 2023 were approximately $161.4 million and $175.2 million, respectively.
We are listed on the New York Stock Exchange (the "NYSE") and are a constituent of the Standard & Poor’s 500 Index and the Morgan Stanley Capital International ("MSCI") REIT index. As of December 31, 2023, we were number 641 on the Fortune 1000.
We are listed on the New York Stock Exchange (the "NYSE") and are a constituent of the Standard & Poor’s 500 Index, the Morgan Stanley Capital International ("MSCI") REIT index and the FTSE EPRA Nareit Global Real Estate Index. As of December 31, 2024, we were number 604 on the Fortune 1000.
Our strategy is underpinned by our persistent focus on best-in-class customer experience, as we continue to seek innovative solutions to help our customers progress on their journey from physical storage to a digital ecosystem. Increased investment in our growth agenda, our business and customer-centric solutions • We have established an investment strategy to fuel our growth.
Our strategy is underpinned by our persistent focus on best-in-class customer experience, as we continue to seek innovative solutions to help our customers progress on their journey from physical storage to a digital ecosystem.
We continue to scale our digital solutions business to complement our existing offerings in records and information management, in addition to expanding our existing leadership capabilities in our ALM, including enterprise secure IT asset disposition, and data center businesses in order to respond to our customers’ growing interest and need to react to environmental, social and corporate governance considerations.
We continue to scale our Global Digital Solutions business to complement our existing offerings in records and information management, ALM, and our Global Data Center business in order to respond to our customers’ growing interest and need to react to environmental, social and corporate governance considerations.
Fine Arts, provides technical expertise in the handling, installation and storing of art ("Fine Arts"). ALM, provides hyperscale and corporate IT infrastructure managers with services and solutions that enable the decommissioning, data erasure, processing and disposition or sale of IT hardware and component assets.
ALM, provides hyperscale and corporate IT infrastructure managers with services and solutions that enable the decommissioning, data erasure, processing and disposition, and recycling or sale of IT hardware and component assets.
As of December 31, 2023, we stored approximately 731.5 million cubic feet of hardcopy records. Data Management, provides storage and rotation of backup computer media as part of corporate disaster recovery plans, including service and courier operations, server and computer backup services and related services offerings ("Data Management").
Data Management, provides storage and rotation of backup computer media as part of corporate disaster recovery plans, including service and courier operations, server and computer backup services and related services offerings ("Data Management").
Other types of insurance that we carry, which are also subject to certain policy conditions, sublimits and deductibles, include medical, workers’ compensation, general liability, umbrella, automobile, professional, cyber, warehouse legal liability and directors’ and officers’ liability policies.
Property is insured based upon the replacement cost of real and personal property, including leasehold improvements, business income loss and extra expense. Other types of insurance that we carry, which are also subject to certain policy conditions, sublimits and deductibles, include medical, workers’ compensation, general liability, umbrella, automobile, professional, cyber, warehouse legal liability and directors’ and officers’ liability policies.
Additionally, employees are able to access emotional well-being resources through global employee assistance programs. Certain unionized employees receive benefits through unions and are not eligible to participate in our benefit programs.
These benefits vary by location but generally include health and welfare benefits, paid time off and programs to support financial security. Additionally, employees are able to access emotional well-being resources through global employee assistance programs. Certain unionized employees receive benefits through unions and are not eligible to participate in our benefit programs.
Risk Factors" included in this Annual Report. SUSTAINABILITY At Iron Mountain, we are using our influence and expertise to drive innovations that will not only protect and elevate the power of our customers’ work, but make a lasting, positive impact on people, planet, and performance.
Risk Factors" included in this Annual Report. SUSTAINABILITY At Iron Mountain, we are using our influence and expertise to drive innovations that protect and elevate the effectiveness of our customers’ endeavors, while also creating a meaningful, positive impact on individuals, the environment, and our overall performance.
The world’s most heavily regulated organizations have trusted us with their data centers for over 15 years, and as of December 31, 2023, five of the top 10 global cloud providers were Iron Mountain Data Center customers. CORPORATE AND OTHER Corporate and Other consists primarily of our Fine Arts and ALM businesses and other corporate items ("Corporate and Other").
The world’s most heavily regulated organizations have trusted us as a data center operator for over 20 years, with five of the largest global hyperscalers among our customers. CORPORATE AND OTHER Corporate and Other consists primarily of our ALM and Fine Arts businesses and other corporate items ("Corporate and Other").
We currently serve customers across an array of market verticals - commercial, legal, financial, healthcare, insurance, life sciences, energy, business services, entertainment and government organizations, including more than 90% of the Fortune 1000. As of December 31, 2023, we employed approximately 27,000 people.
We currently serve customers across an array of market verticals — commercial, legal, financial, healthcare, technology, insurance, life sciences, energy, business services, entertainment and government organizations.
IRON MOUNTAIN 2023 FORM 10-K 5 Table of Contents Part I BENEFIT PROGRAMS We provide our employees with benefits that are designed to support their overall physical, financial, emotional and social well-being. These benefits vary by location but generally include health and welfare benefits, paid time off, and programs to support financial security.
All union employees are currently under renewed labor agreements or operating under an extension agreement. IRON MOUNTAIN 2024 FORM 10-K 5 Table of Contents Part I BENEFIT PROGRAMS We provide our employees with benefits that are designed to support their overall physical, financial, emotional and social well-being.
While the majority of our competitors operate in only one market or region, we believe we provide a differentiated global offering that competes effectively in these areas. We also compete with numerous data center developers, owners and operators, many of whom own properties similar to ours in some of the same metropolitan areas where our facilities are located.
We also compete with numerous data center developers, owners and operators, many of whom own properties comparable to ours in several of the same metropolitan areas where our facilities are located.
We offer philanthropic support to our global community through our Living Legacy Initiative, which is our commitment to help preserve and make accessible cultural and historical information and artifacts.
We offer philanthropic support to our global community through our Living Legacy Initiative, which is our commitment to help preserve and make accessible cultural and historical information and artifacts. We encourage volunteerism in the communities in which we live and work through our Moving Mountains volunteer program, offering paid time off for employees to help community-based and civic-minded organizations.
We believe that competition for data center customers is based on availability of power, security considerations, location, connectivity and rental rates, and we generally believe we compete effectively in each of these areas. Additionally, we believe our strong brand, global footprint and excellent commercial relationships enable us to compete successfully and provide significant cross-sell opportunities with our existing customer base.
We believe that competition for data center customers is based on availability of power, security measures, location, connectivity and rental rates, and we are confident in our ability to compete effectively in each of these areas.
GLOBAL DATA CENTER BUSINESS The Global Data Center Business segment provides enterprise-class data center facilities and hyperscale-ready capacity to protect mission-critical assets and ensure the continued operation of our customers’ IT infrastructure with secure, reliable and flexible data center options.
Consumer Storage, provides on-demand, valet storage for consumers ("Consumer Storage") utilizing data analytics and machine learning to provide effective customer acquisition and a convenient and seamless consumer storage experience. 2 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part I GLOBAL DATA CENTER BUSINESS The Global Data Center Business segment provides enterprise-class data center facilities and hyperscale-ready capacity to protect mission-critical assets and ensure the continued operation of our customers’ IT infrastructure with secure, reliable and flexible data center options.
Over time, customers are increasing their digital information, with the new information storage ecosystem being a hybrid of physical and digital media. We are a different company to the one we have been in our past.
Over time, customers are increasing their digital information, with the new information storage ecosystem being a hybrid of physical and digital media. We have evolved our business to meet our customers' needs while remaining focused on driving growth supported by our four pillars outlined below.
For example, some of our currently and formerly owned or leased properties were previously used by entities other than us for industrial or other purposes, or were affected by waste generated from nearby properties, that involved the use, storage, generation and/or disposal of hazardous substances and wastes, including petroleum products.
GOVERNMENT REGULATION We are required to comply with numerous laws and regulations covering a wide variety of subject matters which may have a material effect on our capital expenditures, earnings and competitive position. 6 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part I For example, some of our currently and formerly owned or leased properties were previously used by entities other than us for industrial or other purposes, or were affected by waste generated from nearby properties, that involved the use, storage, generation and/or disposal of hazardous substances and wastes, including petroleum products.
Differentiated Compliance and Security We offer comprehensive compliance support and physical and cyber security. Our Security-in-Depth approach to security includes a combination of technical and human security measures, and experienced senior military and public sector security leaders oversee our security.
Differentiated Compliance and Security We offer comprehensive compliance support as well as physical and cybersecurity. Our Security-in-Depth strategy integrates both technical and human security measures, with oversight provided by senior security leaders with military and public sector backgrounds.
STRONG ENVIRONMENTAL FOCUS • Iron Mountain provides a Green Power Pass solution in the Data Center market to help customers manage their carbon footprint. • A part of RE100 and EV100 Initiatives - commitment to use renewable energy sources for 100% of our worldwide electricity by 2040 and convert 100% of our company cars and 50% of our vans to electric vehicles by 2030. • Founding signatory of the 24/7 Carbon Free Energy (CFE) compact.
IRON MOUNTAIN 2024 FORM 10-K 7 Table of Contents Part I STRONG ENVIRONMENTAL FOCUS • Iron Mountain provides a Green Power Pass solution in the data center market to help customers manage their carbon footprint. • Founding signatory of the UN Compact on 24/7 Carbon Free Energy.
In addition, we continue to work to further align our reporting with the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures to disclose climate-related financial risks and opportunities, and in 2022 we completed our first climate scenario analysis.
We transparently report on our sustainability efforts and the advancement of our objectives by using widely adopted reporting frameworks such as the Global Reporting Initiative, CDP and EcoVadis. In addition, we continue to further align our reporting with the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures. Our work continues to receive recognition.
Entertainment Services, entertainment and media services which help industry clients store, safeguard and deliver physical media of all types, and provides digital content repository systems that house, distribute, and archive key media assets ("Entertainment Services"). 2 IRON MOUNTAIN 2023 FORM 10-K Table of Contents Part I Consumer Storage, provides on-demand, valet storage for consumers ("Consumer Storage") utilizing data analytics and machine learning to provide effective customer acquisition and a convenient and seamless consumer storage experience.
Media and Archive Services, includes entertainment and media services, which help industry clients store, safeguard and deliver physical media of all types, and provides digital content repository systems that house, distribute and archive key media assets.
We are a member of the FTSE4Good Index, MSCI World ESG Index, MSCI World Climate Change Index and MSCI USA ESG Select Index, each of which include companies that meet globally recognized corporate responsibility standards. A copy of our sustainability responsibility report is available on the "Who we are" section of our website, www.ironmountain.com , under the heading "Sustainability".
We have also been a constituent of the FTSE4Good Index for more than ten years. A copy of our sustainability report is available on the "Who we are" section of our website, www.ironmountain.com, under the heading "Sustainability".
We also report globally on service organizational controls, as well as global ISO 27001 certification, and PCI-DSS compliance, and meet FISMA HIGH and FedRAMP controls in the United States.
These certifications and reports on compliance include the global ISO 27001, ISO 22301, ISO 9001, SOC 2 and PCI-DSS standards, as well as HIPAA, NIST 800-53 and FISMA HIGH in the United States.
Recurring, Durable Revenue Stream We generate a majority of our revenues from contracted storage rental fees, via agreements that generally range from one to five years in length.
Recurring, Durable Revenue Stream A majority of our revenue is recurring in nature. In our Records Management business, our contracted storage rental fee agreements generally range from one to five years in length. As of December 31, 2024, we stored more than 730 million cubic feet of physical volume and we have consistently experienced strong customer retention levels.
We offer the Green Power Pass, which allows customers to include the power they consume at any Iron Mountain data centers as green power in their CDP, RE100, GRI or other sustainability reporting.
This approach enables our Green Power Pass offering, which allows customers to report the power they consume at any Iron Mountain Data Center as clean power in their public reporting, making Iron Mountain a key part of their decarbonization roadmaps and goals.
We also provide access to numerous carriers, cloud providers and peering exchanges with migration support. 100% Green Powered Data Centers As of December 31, 2023, our Global Data Center platform continues to match 100% of its consumption with renewable electricity procurement and benefits from low power usage effectiveness ("PUE").
We also provide access to numerous carriers, cloud providers and peering exchanges with migration support. 100% Clean Energy Data Centers We have matched 100% of the energy consumption in our data centers with clean energy annually since 2017.
Founded in an underground facility near Hudson, New York in 1951, Iron Mountain Incorporated, a Delaware corporation ("IMI"), has more than 225,000 customers in a variety of industries in 60 countries around the world, as of December 31, 2023.
ITEM 1. BUSINESS. BUSINESS OVERVIEW Iron Mountain Incorporated, a Delaware corporation ("IMI"), was founded in an underground facility near Hudson, New York in 1951 where it stored business records.
We expect to incur approximately $150.0 million in costs annually related to Project Matterhorn from 2023 through 2025.
We have incurred approximately $378.5 million in Restructuring and other transformation costs from the inception of Project Matterhorn through December 31, 2024. We expect to incur approximately $150.0 million in costs related to Project Matterhorn during the year ending December 31, 2025, at which point the program is expected to be completed.
Property insurance is purchased on a comprehensive basis, including flood and earthquake (including excess coverage), subject to certain policy conditions, sublimits and deductibles. Property is insured based upon the replacement cost of real and personal property, including leasehold improvements, business income loss and extra expense.
INSURANCE For strategic risk transfer purposes, we maintain a comprehensive insurance program with insurers that we believe to be reputable and which have adequate capitalization in amounts that we believe to be appropriate. Property insurance is purchased on a comprehensive basis, including flood and earthquake (including excess coverage), subject to certain policy conditions, sublimits and deductibles.
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ITEM 1. BUSINESS. BUSINESS OVERVIEW We help organizations around the world protect their information, reduce storage costs, comply with regulations, facilitate corporate disaster recovery and better use their information and IT infrastructure for business advantages, regardless of its format, location or life cycle stage.
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Today, we are a global leader in information management services, and we are trusted by more than 240,000 customers in 61 countries, including approximately 95% of the Fortune 1000, to help unlock value and intelligence from their assets through services that transcend the physical and digital worlds.
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We do this by storing physical records and data backup media, offering information management solutions and providing data center space for enterprise-class colocation and hyperscale deployments.
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Our broad range of solutions address their information management, digital transformation, information security, data center and asset lifecycle management (“ALM”) needs. Our longstanding commitment to safety, security, sustainability and innovation in support of our customers underpins everything we do.
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We offer comprehensive records and information management services and data management services, along with the expertise and experience to address complex storage and information management challenges such as rising storage rental costs, legal and regulatory compliance and disaster recovery requirements.
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IRON MOUNTAIN 2024 FORM 10-K 1 Table of Contents Part I Continued investment in our growth agenda, our business and customer-centric solutions • We have established an investment strategy to fuel our growth.
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We provide secure and reliable data center facilities to protect digital information and ensure the continued operation of our customers’ IT infrastructure, with reliable and flexible deployment options. Our asset lifecycle management ("ALM") business allows us to provide end-to-end asset lifecycle services for hyperscale, corporate data center and corporate end-user device assets.
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In August 2024, we launched the InSight Digital Experience Platform (also referred to as DXP), a secure, software-as-a-service platform designed to automate customer workflows, enhance data accessibility, ensure audit compliance and optimize customer data for AI applications.
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The strategic journey we are on is driving this change and our focus remains on the four pillars outlined below to continue to grow and evolve our business.
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In our Global Data Center Business, our lease durations vary by customer, with a weighted average lease expiration of 10.6 years as of December 31, 2024.
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Historically, in our Records Management business, we have seen strong customer retention (of approximately 98%) and solid physical records retention; more than 50% of physical records that entered our facilities approximately 15 years ago are still with us today. We have also seen strong customer retention in our Global Data Center Business.
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As of December 31, 2024, our data center portfolio has achieved numerous certifications and received third party assurance reports, making it one of the most comprehensive compliance programs in the industry.
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As of December 31, 2023, our data centers comply with one of the most comprehensive compliance programs in the industry, including enterprise-wide certified ISO 14001 and 50001 environmental and energy management systems.
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The program also includes enterprise-wide certified ISO 14001 and 50001 environmental and energy management systems and complies with ISO 14064 for greenhouse gas emissions, supporting our commitment to sustainability.
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As of October 2023, we are in the top 30 of the Environmental Protection Agency's National Top 100 Partners list, with green power comprising 94% of our company-wide U.S. electricity use.
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Our data center business is a founding signatory to the UN Compact on 24/7 Carbon-Free Energy (“CFE”), which seeks hour-by-hour matching of site consumption with local CFE by 2040. COMPETITION We face competition from numerous storage and information management services providers globally, as well as storage and information management services that are managed and operated internally by organizations.
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COMPETITION We compete with thousands of storage and information management services providers around the world, as well as storage and information management services managed and operated internally by organizations. We believe that competition for records and information customers is based on price, reputation and reliability, quality and security of storage, quality of service and scope and scale of technology.
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Competition for records and information customers is driven by factors such as pricing, reputation and reliability, the quality and security of storage solutions and the scope and scale of technology. While the majority of our competitors operate in only one market or region, we believe we provide a differentiated global offering that competes effectively in these areas.
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Similarly, in our ALM business, we compete with both hyperscalers and individual corporate clients who manage their own asset recycling and management, as well as external competitors. HUMAN CAPITAL MANAGEMENT EMPLOYEES As of December 31, 2023, we employed approximately 10,500 employees in the United States and approximately 16,500 employees outside of the United States.
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Additionally, we believe our strong brand, global footprint and excellent commercial relationships empower us to compete successfully and provide significant cross-selling opportunities with our existing customer base. In our ALM business, we compete with both hyperscalers and individual corporate clients who manage their own asset recycling, disposition and management, in addition to external competitors.
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As of December 31, 2023, approximately 400 employees were represented by unions in North America and approximately 725 employees were represented by unions in Latin America. All union employees are currently under renewed labor agreements or operating under an extension agreement.
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HUMAN CAPITAL MANAGEMENT EMPLOYEES As of December 31, 2024, we employed approximately 11,150 employees in the United States and approximately 17,700 employees outside of the United States. As of December 31, 2024, approximately 375 employees were represented by unions in North America and approximately 1,375 employees were represented by unions in Latin America.
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COMPANY CULTURE We recognize that an inspired culture is foundational to how we deliver on our purpose and create sustained growth and value for our shareholders. Iron Mountain's culture is deeply rooted in its enduring values: Act with Integrity, Own Safety and Security, Build Customer Value, Take Ownership and Promote Inclusion and Teamwork .
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COMPANY CULTURE We are committed to making a meaningful impact on our customers, our people and our business by cultivating a culture that is firmly grounded in our values: Acting with Integrity, Owning Safety and Security, Building Customer Value, Taking Ownership and Promoting Inclusion and Teamwork .
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While Iron Mountain is a culture of learning, collaboration, diversity and well-being, we know that culture overall comes down to what it feels like to work at Iron Mountain. This is why we celebrate and recognize our employees who consistently demonstrate Iron Mountain's values in measurable ways while inspiring others to do the same.
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While we foster an environment of learning, collaboration, diversity and wellbeing, we know culture truly thrives in the everyday experience of working at Iron Mountain. Our culture encourages open communication and innovation while fostering trust, engagement and exceptional performance.
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We commit significant resources to sustaining a culture that enables voice and innovation, and facilitates trust, engagement, belonging and performance. We regularly survey our employees on a range of topics to measure our engagement and effectiveness and to obtain their views.
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We evaluate this through regular employee surveys and by leveraging data to gain a deeper understanding of our global workforce, and how they work. These insights collectively enable us to drive enhanced employee engagement, measure effectiveness and refine our approach for sustained success.
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In addition, we use data to gain insight to the global distribution of our employees, where they work, how they work and cost to serve. We use all of this information to drive increased employee engagement and success, as well as to refine our approach.
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Led by our President and CEO, William Meaney, our Inclusive Leadership Alliance (the "Alliance") includes members of the Executive Leadership Team and plays a pivotal role in advancing our culture and driving growth. The Alliance reviews and supports key initiatives, monitors progress toward enterprise goals, ensures accountability through measurable targets and communicates achievements to stakeholders.
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DIVERSITY, EQUITY AND INCLUSION We continue to prioritize diversity, equity, and inclusion ("DEI") as core principles of our corporate strategic goals. Our Global DEI Council is made up of the Executive Leadership Team and is chaired by Iron Mountain President and CEO Bill Meaney.
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Our volunteer-based global employee resource groups play an essential role in supporting talent attraction, retention and development, and serving as valuable allies across our company. Each group is sponsored by one or more members of Iron Mountain’s Executive Leadership Team.
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The Global DEI Council supports our DEI strategy and initiatives, monitors the progress of DEI initiatives and enterprise goals, ensures accountability based on identifiable measures and goals and communicates DEI progress to stakeholders.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeIn connection with our pursuit or entrance into any such venture, we may be subject to additional risks, including: • our ability to sell our interests in the venture may be limited by the venture agreement; • we may not have the right to exercise sole decision-making authority regarding the properties, business, partnership, venture or other entity; • we may be liable for the venture's failure to comply with applicable law despite only having a non-controlling interest in the venture; • if our partners become bankrupt or fail to fund their share of required capital contributions, we may choose or be required to contribute unplanned capital; and • our partners may have economic, tax or other interests or goals that are inconsistent with our interests or goals, and that could affect our ability to negotiate satisfactory venture terms, to operate the property or business or maintain our qualification for taxation as a REIT.
Biggest changeIn connection with our pursuit or entrance into any such venture, we may be subject to additional risks, including: • our ability to sell our interests in the venture may be limited by the venture agreement; • we may not have the right to exercise sole decision-making authority regarding the properties, business, partnership, venture or other entity; • we may be liable for the venture's failure to comply with applicable law despite only having a non-controlling interest in the venture; • if our partners become bankrupt or fail to fund their share of required capital contributions, we may choose or be required to contribute unplanned capital; • our partners may have economic, tax or other interests or goals that are inconsistent with our interests or goals, which could affect our ability to negotiate satisfactory venture terms, to operate the property or business or to maintain our qualification for taxation as a REIT; and • disputes may arise between us and our partners that result in litigation or arbitration that would increase our expenses and divert the attention of our officers and directors. 12 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part I Each of these factors may result in returns on these investments being less than we expect or in losses, and our financial and operating results may be adversely affected.
These initiatives may involve significant risks and uncertainties, including: • our inability to maintain relationships with key customers and suppliers or to execute on our plan to incorporate the digitization of our customers’ records and new digital information technologies into our offerings; • failure to achieve satisfactory returns on new product offerings, acquired companies, joint ventures, growth initiatives, or other investments, particularly in markets where we do not currently operate or have a substantial presence; • our inability to identify suitable companies to acquire, invest in or partner with; • our inability to complete acquisitions or investments on satisfactory terms; • our inability to structure acquisitions or investments in a manner that complies with our debt covenants and is consistent with our leverage ratio goals; • challenges in managing costs to offset the impact of inflationary pressure; • increased demands on our management, operating systems, internal controls and financial and physical resources and, if necessary, our inability to successfully expand our infrastructure; • incurring additional debt necessary to acquire suitable companies or make other growth investments if we are unable to pay the purchase price or make the investment out of working capital or the issuance of our common stock or other equity securities; • our inability to manage the budgeting, forecasting and other process control issues presented by future growth, particularly with respect to new lines of business; • insufficient revenues to offset expenses and liabilities associated with new investments; and • our inability to attract, develop and retain skilled employees to lead and support our strategic growth plan, particularly in new businesses, technologies, products or offerings outside our core competencies.
These initiatives may involve significant risks and uncertainties, including: • our inability to maintain relationships with key customers and suppliers or to execute on our plan to incorporate the digitization of our customers’ records and new digital information technologies into our offerings; • failure to achieve satisfactory returns on new product offerings, acquired companies, joint ventures, growth initiatives or other investments, particularly in markets where we do not currently operate or have a substantial presence; • our inability to identify suitable companies to acquire, invest in or partner with; • our inability to complete acquisitions or investments on satisfactory terms; • our inability to structure acquisitions or investments in a manner that complies with our debt covenants or is consistent with our leverage ratio goals; • challenges in managing costs to offset the impact of inflationary pressure; • increased demands on our management, operating systems, internal controls and financial and physical resources and, if necessary, our inability to successfully expand our infrastructure; • incurring additional debt necessary to acquire suitable companies or make other growth investments if we are unable to pay the purchase price or make the investment out of working capital or the issuance of our common stock or other equity securities; • our inability to manage the budgeting, forecasting and other process control issues presented by future growth, particularly with respect to new lines of business; • insufficient revenues to offset expenses and liabilities associated with new investments; and • our inability to attract, develop and retain skilled employees to lead and support our strategic growth plan, particularly in new businesses, technologies, products or offerings outside our core competencies.
If such subsidiary REIT were to fail to qualify as a REIT, it may cause us to fail to remain qualified for taxation as a REIT.
If such a subsidiary REIT were to fail to qualify as a REIT, it may cause us to fail to remain qualified for taxation as a REIT.
There can be no assurance we will have sufficient customer demand to support the data centers we have acquired, or that we will not be adversely affected by the risks noted above under "Significant costs or disruptions at our data centers could adversely affect our business, financial condition and results of operations", which could make it difficult for us to realize expected returns on our investments, if any.
There can be no assurance we will have sufficient customer demand to support the data centers we have acquired or built, or that we will not be adversely affected by the risks noted above under "Significant costs or disruptions at our data centers could adversely affect our business, financial condition and results of operations", which could make it difficult for us to realize expected returns on our investments, if any.
The global nature of our business and our growth strategy, which includes continued acquisitions and investments in countries where we do not currently operate, is subject to numerous risks, including: • fluctuations of currency exchange rates in the markets in which we operate; • the impact of laws and regulations that apply to us in countries in which we operate or have made investments; in particular, we are subject to sanctions and anti-corruption laws, such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and, although we have implemented internal controls, policies and procedures and training to deter prohibited practices, our employees, partners, contractors or agents may violate or circumvent such policies and the law; • costs and difficulties associated with managing global operations, including cross-border sales; • the volatility of certain economies in which we operate; • political uncertainties and changes in the global political climate or other global events, such as trade wars or global pandemics, which may create additional risk in relation to our global operations, which may become more pronounced as we consolidate operations across countries and need to move data across borders; • the risk that business partners upon whom we depend for technical assistance or management and acquisition expertise in some markets will not perform as expected; • difficulties attracting and retaining local management and key employees to operate our business in certain countries; and • cultural differences and differences in business practices and operating standards, as well as risks and challenges in expanding into countries where we have no prior operational experience.
The global nature of our business and our growth strategy, which includes continued acquisitions and investments in countries where we do not currently operate, is subject to numerous risks, including: • fluctuations of currency exchange rates in the markets in which we operate; • the impact of laws and regulations that apply to us in countries in which we operate or have made investments; in particular, we are subject to sanctions and anti-corruption laws, such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and, although we have implemented internal controls, policies and procedures and training to deter prohibited practices, our employees, partners, contractors or agents may violate or circumvent such policies and the law; • costs and difficulties associated with managing global operations, including cross-border sales; • the volatility of certain economies in which we operate; • political uncertainties and changes in the global political climate or other global events, such as war or other military conflict, trade wars or global pandemics, which may create additional risk in relation to our global operations, which may become more pronounced as we consolidate operations across countries and need to move data across borders; • the risk that business partners upon whom we depend for technical assistance or management and acquisition expertise in some markets will not perform as expected; • difficulties attracting and retaining local management and key employees to operate our business in certain countries; and • cultural differences and differences in business practices and operating standards, as well as risks and challenges in expanding into countries where we have no prior operational experience.
Finally, as a result of the continued emphasis on information security and instances in which personal information has been compromised, our customers are requesting that we take increasingly sophisticated measures to enhance security and comply with data privacy regulations, and that we assume higher liability under our contracts.
Finally, as a result of the continued emphasis on information security and instances in which personal information has been compromised, our customers are requesting that we take increasingly sophisticated measures to enhance security and comply with cybersecurity and data privacy regulations and that we assume higher liability under our contracts.
Moreover, as we expand our operations into new businesses, including digital solutions, ALM, and the storage of valuable items, and respond to customer demands for higher limitation of liability, our exposure to contracts with higher or no limitations of liability and disputes with customers over contract interpretation may increase.
Moreover, as we expand our operations into new businesses, including Global Digital Solutions, ALM, and the storage of valuable items, and respond to customer demands for higher limitation of liability, our exposure to contracts with higher or no limitations of liability and disputes with customers over contract interpretation may increase.
Our use of joint ventures or other co-investment vehicles could expose us to additional risks and liabilities, including our reliance on joint venture or other co-investment vehicles partners who may have economic and business interests that are inconsistent with our business interests and our lack of sole decision-making authority.
Our use of joint ventures or other co-investment vehicles could expose us to additional risks and liabilities, including our lack of sole decision-making authority and our reliance on joint venture or other co-investment vehicle partners who may have economic and business interests that are inconsistent with our business interests.
These risks include: • inability to satisfy our obligations with respect to our various debt instruments; • inability to make borrowings to fund future working capital, capital expenditures and strategic growth opportunities, including acquisitions, further organic development of, and investment into, our Global Data Center Business, ALM and Fine Arts businesses and other service offerings, and other general corporate requirements, including possible required repurchases, redemptions or prepayments of our various indebtedness; • limits on our distributions to stockholders; in this regard if these limits prevented us from satisfying our REIT distribution requirements, we could fail to remain qualified for taxation as a REIT or, if these limits do not jeopardize our qualification for taxation as a REIT but do nevertheless prevent us from distributing 100% of our REIT taxable income, we will be subject to federal corporate income tax, and potentially a nondeductible excise tax, on the retained amounts; • limits on future borrowings under our existing or future credit arrangements, which could affect our ability to pay our indebtedness or to fund our other liquidity needs; • inability to generate sufficient funds to cover required interest payments; • restrictions on our ability to refinance our indebtedness on commercially reasonable terms; • limits on our flexibility in planning for, or reacting to, changes in our business and the information management services industry; and • inability to adjust to adverse economic conditions that could place us at a disadvantage to our competitors with less debt and who, therefore, may be able to take advantage of opportunities that our indebtedness prevents us from pursuing.
These risks include: • inability to satisfy our obligations with respect to our various debt instruments; • inability to make borrowings to fund future working capital, capital expenditures and strategic growth opportunities, including acquisitions, further organic development of, and investment into, our Global Data Center, ALM and Global Digital Solutions businesses and other service offerings, and other general corporate requirements, including possible required repurchases, redemptions or prepayments of our various indebtedness; • limits on our distributions to stockholders; in this regard if these limits prevented us from satisfying our REIT distribution requirements, we could fail to remain qualified for taxation as a REIT or, if these limits do not jeopardize our qualification for taxation as a REIT but do nevertheless prevent us from distributing 100% of our REIT taxable income, we will be subject to federal corporate income tax, and potentially a nondeductible excise tax, on the retained amounts; • limits on future borrowings under our existing or future credit arrangements, which could affect our ability to pay our indebtedness or to fund our other liquidity needs; • inability to generate sufficient funds to cover required interest payments; • restrictions on our ability to refinance our indebtedness on commercially reasonable terms; • limits on our flexibility in planning for, or reacting to, changes in our business and the information management services industry; and • inability to adjust to adverse economic conditions that could place us at a disadvantage to our competitors with less debt and who, therefore, may be able to take advantage of opportunities that our indebtedness prevents us from pursuing.
Our Global Data Center Business is susceptible to regional costs of power, power shortages, planned or unplanned power outages and limitations on the availability of adequate power resources. We rely on third parties to provide power to our data centers.
Our Global Data Center Business is susceptible to regional and local costs of power, power shortages, planned or unplanned power outages and limitations on the availability of adequate power resources. We rely on third parties to provide power to our data centers.
Unexpected events, including fires or explosions at our facilities, war or other military conflict, terrorist activities, natural disasters such as earthquakes and wildfires, unplanned power outages, supply disruptions, failure of equipment or systems, and severe weather events, such as droughts, heat waves, hurricanes, and flooding, could adversely affect our reputation and results of operations through physical damage to our facilities and equipment and through physical damage to, or disruption of, local infrastructure.
Unexpected events, including fires or explosions at our facilities, war or other military conflict, terrorist activities, natural disasters such as earthquakes and wildfires, unplanned power outages, supply disruptions, failure of equipment or systems, and severe weather events, such as droughts, heat waves, hurricanes, and flooding, could adversely affect our reputation and results of operations through physical damage to our facilities, equipment and customers' inventory and through physical damage to, or disruption of, local infrastructure.
In addition, future regulatory action and environmental laws may impose costs for environmental compliance that do not exist today. 14 IRON MOUNTAIN 2023 FORM 10-K Table of Contents Part I Unexpected events, including those resulting from climate change or geopolitical events, could disrupt our operations and adversely affect our reputation and results of operations.
In addition, future regulatory action and environmental laws may impose costs for environmental compliance that do not exist today. 14 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part I Unexpected events, including those resulting from climate change or geopolitical events, could disrupt our operations and adversely affect our reputation and results of operations.
These restrictions and our long-term commitment to maintain our leverage ratio may adversely affect our ability to pursue our acquisition and other growth strategies, including our strategic growth plan. We may not have the ability to raise the funds necessary to finance the repurchase of outstanding senior notes upon a change of control event as required by our indentures.
These restrictions and our long-term commitment to maintain our leverage ratio may adversely affect our ability to pursue acquisitions and other growth strategies, including our strategic growth plan. We may not have the ability to raise the funds necessary to finance the repurchase of outstanding senior notes upon a change of control event as required by our indentures.
Finally, emerging artificial intelligence ("AI") regulations, increasing use of AI and generative AI tools and their integration into our businesses may require additional resources and create additional compliance and cybersecurity risks. Attacks on our internal IT systems could damage our reputation, cause us to lose revenues, and adversely affect our business, financial condition and results of operations.
Finally, emerging AI regulations, increasing use of AI and generative AI tools and their integration into our businesses may require additional resources and create additional compliance and cybersecurity risks. Attacks on our internal IT systems could damage our reputation, cause us to lose revenues and adversely affect our business, financial condition and results of operations.
Our customer contracts typically contain standardized provisions limiting our liability regarding the services we perform and the loss or destruction of, or damage to, records, information, or other items stored with us; however, some of our contracts with large customers and some of the contracts assumed in our acquisitions contain no such limits or contain non-standard limits.
Our customer contracts typically contain standardized provisions limiting our liability regarding the services we perform and the loss or destruction of, or damage to, records, information or other items stored with us; however, some of our contracts with large customers and governmental entities and some of the contracts assumed in our acquisitions contain no such limits or contain non-standard limits.
The process of integrating acquired businesses, particularly in new markets or for new offerings, may involve unforeseen difficulties and may require a disproportionate amount of our management’s attention and our financial and other resources. 10 IRON MOUNTAIN 2023 FORM 10-K Table of Contents Part I For example, the success of our significant acquisitions depends, in large part, on our ability to realize the anticipated benefits, including cost savings or revenue acceleration from combining the acquired businesses with ours.
The process of integrating acquired businesses, particularly in new markets or for new offerings, may involve difficulties and may require a disproportionate amount of our management’s attention and our financial and other resources. 10 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part I For example, the success of our significant acquisitions depends, in large part, on our ability to realize the anticipated benefits, including cost savings or revenue acceleration from combining the acquired businesses with ours.
As part of our strategic growth plan, including Project Matterhorn, we expect to invest in our existing businesses, including records and information management storage and services businesses in our higher-growth markets, data centers, ALM business and other complementary businesses, and in new businesses, business strategies, products, services, technologies and geographies.
As part of our strategic growth plan, including Project Matterhorn, we expect to invest in our existing businesses, including records and information management storage and services businesses in our higher-growth markets, data centers, digital solutions, ALM business and other complementary businesses, and in new businesses, business strategies, products, services, technologies and geographies.
We have an established privacy compliance framework and devote substantial resources, and may in the future have to devote significant additional resources, to facilitate compliance with global laws and regulations, our customers’ data privacy, data residency and security demands, and to investigate, defend or remedy actual or alleged violations or breaches.
We have an established global privacy compliance program and devote substantial resources, and may in the future have to devote significant additional resources, to facilitate compliance with global laws and regulations, our customers’ data privacy, data residency and security demands, and to investigate, defend or remedy actual or alleged violations or breaches.
Service interruptions or equipment damage may occur at one or more of our data centers because of numerous factors, including: human error; equipment failure; physical, electronic and cyber security breaches; fire, hurricane, flood, earthquake and other natural disasters; water damage; fiber cuts; extreme temperatures; power loss or telecommunications failure; war, terrorism and any related conflicts or similar events worldwide; and sabotage and vandalism.
Service interruptions or equipment damage may occur at one or more of our data centers because of numerous factors, including: human error; equipment failure; physical, electronic and cybersecurity breaches; fire, hurricane, flood, earthquake and other natural disasters; water damage; fiber cuts; extreme temperatures; power loss or telecommunications failure; war, terrorism and any related conflicts or similar events worldwide; and sabotage and vandalism.
IRON MOUNTAIN 2023 FORM 10-K 13 Table of Contents Part I Our ALM business may be subject to additional risks, including those related to its client and geographic concentration, government trade policies, and macroeconomic conditions.
IRON MOUNTAIN 2024 FORM 10-K 13 Table of Contents Part I Our ALM business may be subject to additional risks, including those related to its client and geographic concentration, government trade policies, and macroeconomic conditions.
However, we can provide no assurance that we will remain qualified for taxation as a REIT. We also have invested in a subsidiary that has elected to be taxed as a REIT and therefore must independently satisfy all REIT qualification requirements, and we may in the future invest in other such subsidiaries.
However, we can provide no assurance that we will remain qualified for taxation as a REIT. We also have invested in subsidiaries that have elected or that we expect will elect to be taxed as REITs and therefore must independently satisfy all REIT qualification requirements. We may in the future invest in other such subsidiary REITs.
Deficiencies, including any material weakness, in our internal control over financial reporting which may occur in the future could result in misstatements of our results of operations, restatements of our financial statements, a decline in our stock price, or otherwise materially adversely affect our business, reputation, results of operations, financial condition or liquidity.
Deficiencies, including any material weakness, in our internal control over financial reporting which may occur in the future could result in misstatements of our results of operations, restatements of our financial statements, a decline in our stock price, or otherwise materially adversely affect our business, reputation, results of operations, financial condition or liquidity. We face competition for customers.
IRON MOUNTAIN 2023 FORM 10-K 11 Table of Contents Part I As a global company, we are subject to the unique risks of operating in many countries. As of December 31, 2023, we operated in 60 countries.
IRON MOUNTAIN 2024 FORM 10-K 11 Table of Contents Part I As a global company, we are subject to the unique risks of operating in many countries. As of December 31, 2024, we operated in 61 countries.
Further, significant declines in the cost of paper may continue to negatively impact our revenues and results of operations, and increases in other commodity prices, including steel, may negatively impact our results of operations. Failure to manage and adequately implement our new IT systems could negatively affect our business.
Significant declines in the cost of paper or scrap metals may negatively impact our revenues and results of operations, and increases in other commodity prices, including steel, may negatively impact our results of operations. Failure to manage and adequately implement our new IT systems could negatively affect our business.
Our future growth depends in part upon our ability to continue to effectively manage and execute on revenue management. Over the past several years, our organic revenue growth has been positively impacted by our ability to effectively introduce, expand and monitor revenue management.
Our future growth depends in part upon our ability to continue to effectively manage and execute on revenue management. Our organic revenue growth has been positively impacted by our ability to effectively introduce, expand and monitor revenue management.
If governments enact trade policies that restrict the export of IT assets into China or other markets in which we sell decommissioned IT asset components, or increase the enforcement of such policies, then the revenue from the sale of these assets may be negatively impacted.
If governments enact trade policies or environmental regulations that restrict or increase the cost of exporting IT assets into China or other markets in which we sell decommissioned IT asset components or recyclable materials, or increase the enforcement of such policies, then the revenue from the sale of these assets may be negatively impacted.
These ventures can result in our holding non-controlling interests in, or having responsibility for managing the affairs of, a property or portfolio of properties, business, partnership, joint venture or other entity.
These ventures can result in our holding non-controlling interests in, or not having sole control over managing the affairs of, a property or portfolio of properties, business, partnership, joint venture or other entity.
Additional or unexpected disruptions to our supply chain, continued inflationary pressures or high interest rates, or changes in customer requirements could significantly affect the cost or timing of our planned expansion projects and interfere with our ability to meet commitments to customers who have contracted for space in new data centers under construction.
Unexpected disruptions to our supply chain, continued inflationary pressures or high interest rates, tariffs, delays in construction, limited financing availability, constrained supplies of new power, or changes in customer requirements could significantly affect the cost or timing of our planned expansion projects, have consequences under our project financing and partnership agreements, and interfere with our ability to meet commitments to customers who have contracted for space in new data centers under construction.
Our operating revenues and results of operations are impacted by significant changes in commodity prices. In particular, our secure shredding operations generate revenue from the sale of shredded paper for recycling.
Our operating revenues and results of operations are impacted by significant changes in commodity prices. In particular, our secure shredding operations generate revenue from the sale of shredded paper for recycling. Additionally, our ALM business may be affected by the prices of scrap metals.
Consequently, our distribution levels may fluctuate and we may not be able to meet our public commitments with respect to dividend growth. Our business could be adversely impacted if there are deficiencies in our disclosure controls and procedures or internal control over financial reporting.
Consequently, our distribution levels may fluctuate and we may not be able to meet our public commitments with respect to dividend growth. IRON MOUNTAIN 2024 FORM 10-K 19 Table of Contents Part I Our business could be adversely impacted if there are deficiencies in our disclosure controls and procedures or internal control over financial reporting.
However, it is possible that we will not have sufficient funds at the time of a change of control to make the required repurchase of any outstanding notes or that restrictions in our Credit Agreement will not allow such repurchases.
However, it is possible that we will not have sufficient funds at the time of a change of control to make the required repurchase of any outstanding notes or that restrictions in our Credit Agreement will not allow such repurchases. Failure to make the required repurchases could result in cross defaults or payment acceleration events under our other debt instruments.
Any failure by us to comply with, or remedy any violations or breaches of, laws and regulations or customer requirements could negatively impact our operations, result in the imposition of fines and penalties, contractual liability and litigation, significant costs and expenses and reputational harm. Expansion into Digital and ALM services means that our privacy and security risk profile is increasing.
Any failure by us to comply with, or remedy any violations or breaches of, laws and regulations or customer requirements could negatively impact our operations, result in the imposition of fines and penalties, contractual liability and litigation, significant costs and expenses and reputational harm.
As a REIT, we are limited in our ability to fund distribution payments using cash generated through our TRSs. Our ability to receive distributions from our TRSs is limited by the rules with which we must comply to maintain our qualification for taxation as a REIT.
IRON MOUNTAIN 2024 FORM 10-K 17 Table of Contents Part I As a REIT, we are limited in our ability to fund distribution payments using cash generated through our TRSs. Our ability to receive distributions from our TRSs is limited by the rules with which we must comply to maintain our qualification for taxation as a REIT.
If, in any taxable year, we fail to remain qualified for taxation as a REIT and are not entitled to relief under the Code: • 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.
If, in any taxable year, we fail to remain qualified for taxation as a REIT and are not entitled to relief under the Code: • 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. 16 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part I Any such corporate tax liability could be substantial and would reduce the amount of cash available for other purposes.
Specifically, if our TRSs become highly profitable, we might become limited in our ability to receive net income from our TRSs in an amount required to fund distributions to our stockholders commensurate with that profitability.
Specifically, if our TRSs become highly profitable, we might become limited in our ability to receive net income from our TRSs in an amount required to fund distributions to our stockholders commensurate with that profitability. In addition, a significant amount of our income and cash flows from our TRSs is generated from our international operations.
In particular, we are hosting increasing volumes of customer digital data, including sensitive and confidential data, and disposing of customer data-bearing devices. This may result in increased regulatory exposure, contractual liability and security expectations from customers.
Expansion into Global Digital Solutions and ALM services means that our privacy and security risk profile is increasing. In particular, we are hosting increasing volumes of customer digital data, including sensitive and confidential data, and disposing of customer data-bearing devices. This may result in increased regulatory exposure, contractual liability and security expectations from customers.
Certain of our indebtedness, including indebtedness under our credit agreement, is paid at floating interest rates, and as a result, our interest expense or the cost of our debt may increase due to rising interest rates or changes to benchmark rates.
IRON MOUNTAIN 2024 FORM 10-K 15 Table of Contents Part I Certain of our indebtedness, including indebtedness under our Credit Agreement (as defined below), is paid at floating interest rates, and as a result, our interest expense or the cost of our debt may increase due to rising interest rates or changes to benchmark rates.
While volumes in our Global RIM Business segment were relatively steady in 2023 and we expect them to remain relatively consistent in the near term, we can provide no assurance that our customers will continue to store most or a portion of their records as paper documents or as tapes, or that the paper documents or tapes they do store with us will require our storage related services at the same levels as they have in the past.
We can provide no assurance that our customers will continue to store most or a portion of their records as paper documents or as tapes, or that the paper documents or tapes they do store with us will require our storage related services at the same levels as they have in the past.
RISKS RELATED TO OUR INDEBTEDNESS Our indebtedness could adversely affect our financial health and prevent us from fulfilling our obligations under our various debt instruments. As of December 31, 2023, our total long-term debt was approximately $12,034.6 million, stockholders equity was approximately $211.6 million and we had cash and cash equivalents of approximately $222.8 million.
RISKS RELATED TO OUR INDEBTEDNESS Our indebtedness could adversely affect our financial health and prevent us from fulfilling our obligations under our various debt instruments. As of December 31, 2024, our total long-term debt was approximately $13,836.4 million, stockholders' deficit was approximately $503.1 million and we had cash and cash equivalents of approximately $155.7 million.
In addition, hedging losses in any of our TRSs generally will not provide any tax benefit, except for being carried forward for possible use against future income or gain in the TRSs. Distributions payable by REITs generally do not qualify for preferential tax rates.
In addition, hedging losses in any of our TRSs generally will not provide any tax benefit, except for being carried forward for possible use against future income or gain in the TRSs. 18 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part I Distributions payable by REITs generally do not qualify for preferential tax rates, which could reduce the demand for and market price of our common stock.
IRON MOUNTAIN 2023 FORM 10-K 9 Table of Contents Part I Our customers may shift from paper and tape storage to alternative technologies that may shift our revenue mix away from storage revenue. We derive substantial revenues from rental fees for the storage of physical records and computer backup media and from storage related services.
IRON MOUNTAIN 2024 FORM 10-K 9 Table of Contents Part I Our customers continue to evolve the way they store records, which could impact our storage revenue. We derive substantial revenues from rental fees for the storage of physical records and computer backup media and from storage related services.
These organizations may not begin or continue to use us for their future storage and information management service needs. The performance of our businesses relies on our ability to attract, develop, and retain talented personnel, while controlling our labor costs. We are highly dependent on skilled and qualified personnel to operate our businesses.
The performance of our businesses relies on our ability to attract, develop, and retain talented personnel, while controlling our labor costs. We are highly dependent on skilled and qualified personnel to operate our businesses.
Our Global Data Center Business depends on providing customers with highly reliable facilities, power infrastructure and operations solutions, and we will need to retain and hire qualified personnel to manage our data centers. Service interruptions or significant equipment damage could result in difficulty maintaining service-level commitment obligations that we owe to certain of our customers.
Significant costs or disruptions at our data centers could adversely affect our business, financial condition and results of operations. Our Global Data Center Business depends on providing customers with highly reliable facilities, power infrastructure and operations solutions, and we will need to retain and hire qualified personnel to manage our data centers.
Any such corporate tax liability could be substantial and would reduce the amount of cash available for other purposes. If we fail to remain qualified for taxation as a REIT, we may need to borrow additional funds or liquidate some investments to pay any additional tax liability.
If we fail to remain qualified for taxation as a REIT, we may need to borrow additional funds or liquidate some investments to pay any additional tax liability. Accordingly, funds available for investment and distributions to stockholders could be reduced. As a REIT, failure to make required distributions would subject us to federal corporate income tax.
As of December 31, 2023, we operated approximately 1,400 facilities worldwide, including approximately 600 in the United States, and face special risks attributable to the real estate we own or lease.
As of December 31, 2024, we operated approximately 1,350 facilities worldwide, including approximately 550 in the United States, and face special risks attributable to the real estate we own or lease, which could have a material adverse effect on our revenues, operating results and financial position.
More favorable rates will nevertheless continue to apply to regular corporate "qualified" dividends, which may cause some investors to perceive that an investment in a REIT is less attractive than an investment in a non-REIT entity that pays dividends, thereby reducing the demand and market price of our common stock. 18 IRON MOUNTAIN 2023 FORM 10-K Table of Contents Part I The ownership and transfer restrictions contained in our certificate of incorporation may not protect our qualification for taxation as a REIT, could have unintended antitakeover effects and may prevent our stockholders from receiving a takeover premium.
More favorable rates will nevertheless continue to apply to regular corporate "qualified" dividends, which may cause some investors to perceive that an investment in a REIT is less attractive than an investment in a non-REIT entity that pays dividends, thereby reducing the demand and market price of our common stock.
In addition, if we are successful in winning record storage customers from competitors, the process of moving their stored records into our facilities is often costly and time consuming. We also compete, in some of our business lines, with our current and potential customers’ internal storage and information management services capabilities and their cloud-based alternatives.
We compete with multiple businesses in all geographic areas where we operate; our current or potential customers may choose to use those competitors instead of us. In addition, if we are successful in winning record storage customers from competitors, the process of moving their stored records into our facilities is often costly and time consuming.
Storage volume and/or demand for our traditional storage related services may decline as our customers adopt alternative storage technologies or as retention requirements evolve, which may require significantly less space than traditional physical records and tape storage.
Volume in and demand for our traditional storage related services has evolved as our customers adopt alternative storage technologies or as retention requirements change, which may require significantly less space than traditional physical records and tape storage; however, volumes in our Global RIM Business segment were relatively steady in 2024 and we expect them to remain relatively consistent in the near term.
In addition, we may be required to commit significant operational and financial resources in connection with the organic growth of our Global Data Center Business, generally 12 to 24 months in advance of securing customer contracts, and we may not have enough customer demand to support these data centers when they are built.
Expanding our Global Data Center Business requires significant capital. In addition, we may be required to commit significant operational and financial resources in connection with the organic growth of our Global Data Center Business substantially in advance of such newly developed data centers generating revenue.
IRON MOUNTAIN 2023 FORM 10-K 15 Table of Contents Part I Restrictive debt covenants may limit our ability to pursue our growth strategy.
Restrictive debt covenants may limit our ability to pursue our growth strategy.
Removed
Each of these factors may result in returns on these investments being less than we expect or in losses, and our financial and operating results may be adversely affected. 12 IRON MOUNTAIN 2023 FORM 10-K Table of Contents Part I Significant costs or disruptions at our data centers could adversely affect our business, financial condition and results of operations.
Added
Service interruptions or significant equipment damage could result in difficulty maintaining service-level commitment obligations that we owe to certain of our customers.
Removed
Expanding our Global Data Center Business requires significant capital commitments.
Added
The ownership and transfer restrictions contained in our certificate of incorporation may not protect our qualification for taxation as a REIT, could have unintended antitakeover effects and may prevent our stockholders from receiving a takeover premium.
Removed
Accordingly, funds available for investment and distributions to stockholders could be reduced. 16 IRON MOUNTAIN 2023 FORM 10-K Table of Contents Part I As a REIT, failure to make required distributions would subject us to federal corporate income tax.
Added
We also compete, in some of our business lines, with our current and potential customers’ internal storage and information management services capabilities and their cloud-based alternatives. These organizations may not begin or continue to use us for their future storage and information management service needs.
Removed
IRON MOUNTAIN 2023 FORM 10-K 17 Table of Contents Part I In addition, a significant amount of our income and cash flows from our TRSs is generated from our international operations.
Removed
IRON MOUNTAIN 2023 FORM 10-K 19 Table of Contents Part I We face competition for customers. We compete with multiple businesses in all geographic areas where we operate; our current or potential customers may choose to use those competitors instead of us.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

14 edited+3 added−4 removed11 unchanged
Biggest changeAs part of the risk management team, our Chief Information Security Officer reports key performance indicators of our information security program to the RSC at least three times a year to facilitate the committee’s oversight of the effectiveness of the program through objective measurements, including metrics regarding software patching, IT asset management, cyber incident management and cybersecurity training.
Biggest changeOur Chief Risk Officer provides reports at each meeting of the RSC on areas of potential risks to us, including cybersecurity risk, and our Chief Information Security Officer provides quarterly reports to the RSC on the key performance indicators of our information security program to facilitate the RSC’s oversight of the program through objective measurements, including metrics regarding software patching, IT asset management, cyber incident management and cybersecurity training.
All cybersecurity incidents are assessed to determine whether disclosure is required pursuant to any contractual or regulatory requirements and any material cybersecurity incident is also reported to our board of directors (our “Board”).
All cybersecurity incidents are assessed to determine whether disclosure is required pursuant to any contractual or regulatory requirements and any material cybersecurity incident is also reported to our board of directors (our "Board").
ITEM 1C. CYBERSECURITY. RISK MANAGEMENT AND STRATEGY We maintain a robust information security program that is designed to protect our information and the information of our customers. Our information security program is based on a recognized cybersecurity framework established by the National Institute of Standards and Technology (“NIST”) and establishes controls to mitigate critical areas of cybersecurity risk.
ITEM 1C. CYBERSECURITY. RISK MANAGEMENT AND STRATEGY We maintain a robust information security program that is designed to protect our information and the information of our customers. Our information security program is based on a recognized cybersecurity framework established by the National Institute of Standards and Technology ("NIST") and establishes controls to mitigate critical areas of cybersecurity risk.
The risk and safety committee of our Board (the “RSC”) is specifically tasked with reviewing and monitoring cybersecurity and information security risk, as well as the risk management strategies, systems and policies and processes implemented, established and reported on by our executive management team.
The risk and safety committee of our Board (the "RSC") is specifically tasked with reviewing and monitoring cybersecurity and information security risk, as well as the risk management strategies, systems and policies, and processes implemented, established and reported on by our executive management team.
As part of our information security program, we also actively monitor emerging cyber attack patterns to develop custom detection capabilities and mitigation techniques to protect against material risk of cybersecurity threats.
As part of our information security program, we also actively monitor emerging cyberattack patterns to develop custom detection capabilities and mitigation techniques to protect against material risk of cybersecurity threats.
Upon encountering a cybersecurity incident, our information security team responds using our detailed cyber security incident response plan (“CSIRP”), which is based on industry best practices, relevant legal requirements and our contractual commitments.
Upon encountering a cybersecurity incident, our information security team responds using our detailed cybersecurity incident response plan ("CSIRP"), which is based on industry best practices, relevant legal requirements and our contractual commitments.
Our executive management team, with oversight from our Board, is responsible for our enterprise risk management process and the day-to-day supervision and mitigation of enterprise risks, including cybersecurity risk. Our enterprise risk management program includes our executive management team receiving regular reports from our operations personnel.
The RSC is also primarily responsible for assisting our Board with oversight of our enterprise risk management program. Our executive management team, with oversight from our Board, is responsible for our enterprise risk management process and the day-to-day supervision and mitigation of enterprise risks, including cybersecurity risk.
Reports by our Chief Information Security Officer also include detailed information on the activities of our cyber incident response team to allow for analysis of trends and the identification of any control gaps that require remediation.
Reports by our Chief Information Security Officer also include detailed information on the activities of our cyber incident response team to allow for analysis of trends and the identification of any control gaps that require remediation. We also maintain a business information security committee (the "ISC") with employee representation across geographies, business lines and business functions.
Our executive management team has established an enterprise risk committee (the "ERC"), which is chaired by our Chief Risk Officer and is otherwise comprised of each of our other executive vice presidents.
Our enterprise risk management program includes our executive management team receiving regular reports from our operations personnel. As part of our enterprise risk program, our executive management team has established an enterprise risk committee (the "ERC"), which is chaired by our Chief Risk Officer and is otherwise composed of each of our other executive vice presidents.
The ERC oversees our risk and compliance activities to ensure that management has appropriate policies, structures and systems in place for managing risks of the business, including cybersecurity risk. Our executive management team reviews and prioritizes significant risks, allocates resources for risk mitigation.
The ERC oversees our risk and compliance activities to ensure that management has appropriate policies and management plans in place for managing risks of the business, including cybersecurity risk, as well as reviewing and prioritizing significant risks and allocating resources for risk mitigation.
All of the leaders in our information security team have over 10 years of cybersecurity experience and most of our information security staff maintain cybersecurity program certifications such as CMU Cybersecurity Executive Certification, ISACA Certifications (CISSP & CISM) and other relevant vendor certifications. Our information security team also regularly undergoes continuing education to ensure our implementation of best-in-class techniques.
Our information security team is organized based on industry best practices in alignment with NIST recommendations. All of the leaders in our information security team have over 10 years of cybersecurity experience and most of our information security staff maintain cybersecurity program certifications such as CMU Cybersecurity Executive Certification, ISACA Certifications (CISSP & CISM) and other relevant vendor certifications.
The information security team is made primarily of full-time employees; however, we routinely engage consultants to provide supplemental labor and additional expertise in specific areas on an as-needed basis. Our information security team is organized based on industry best practices in alignment with NIST recommendations.
Members of the ISC act as points of contact during incident response activities to provide oversight and logistical support to the information security team. The information security team is made primarily of full-time employees; however, we routinely engage consultants to provide supplemental labor and additional expertise in specific areas on an as-needed basis.
To date, our information security program has been successful in protecting against risks from cybersecurity threats, and we have not had any cybersecurity incidents that have materially affected or are reasonably likely to materially affect our business strategy, results of operations or financial condition. 20 IRON MOUNTAIN 2023 FORM 10-K Table of Contents Part I Our risk management organization, which is led by our Chief Risk Officer, manages our information security program along with enterprise risk management, business continuity, internal audit and physical security.
To date, our information security program has been successful in protecting against risks from cybersecurity threats, and we have not had any cybersecurity incidents that have materially affected or are reasonably likely to materially affect our business strategy, results of operations or financial condition.
Results of our assessments are tracked and evaluated to ensure these third parties comply with our cybersecurity standards. Our reputation for providing secure information storage to customers is critical to the success of our business, and protecting against material cyber risks is an integral part of maintaining that reputation.
The results of our assessments are tracked and evaluated to ensure these third parties comply with our cybersecurity standards.
Removed
Our risk management team routinely reports on cybersecurity matters to our executive management team and our Board. Our Chief Information Security Officer, who reports directly to our Chief Risk Officer, leads a dedicated information security team that manages our information security program.
Added
We require all employees to undertake data protection and cybersecurity training and compliance programs annually. 20 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part I Our reputation for providing secure information storage to customers is critical to the success of our business, and protecting against material cybersecurity risks is an integral part of maintaining that reputation.
Removed
The RSC is also primarily responsible for assisting our Board with oversight of our enterprise risk management program.
Added
Additional information about cybersecurity risks we face is discussed in Item 1A of Part I, “Risk Factors,” under the heading “Attacks on our internal IT systems could damage our reputation, cause us to lose revenues, and adversely affect our business, financial condition and results of operations”, which should be read in conjunction with the information above.
Removed
Our Chief Risk Officer and other members of our risk management team provide reports at each meeting of the RSC on areas of potential risks to us, including cybersecurity risk. We also maintain a business information security committee (the "ISC") with employee representation across geographies, business lines and business functions.
Added
Our information security team also regularly undergoes continuing education to ensure our implementation of best-in-class techniques. IRON MOUNTAIN 2024 FORM 10-K 21 Table of Contents Part I
Removed
Members of the ISC act as points of contact during incident response activities to provide oversight and logistical support to the information security team.

Item 2. Properties

Properties — owned and leased real estate

5 edited+1 added−0 removed2 unchanged
Biggest changeA breakdown of owned and leased facilities by country (and by state within the United States) is listed below: IRON MOUNTAIN 2023 FORM 10-K 21 Table of Contents Part I LEASED OWNED TOTAL COUNTRY/STATE NUMBER SQUARE FEET NUMBER SQUARE FEET NUMBER SQUARE FEET North America United States (Including Puerto Rico) Alabama 3 305,168 — — 3 305,168 Arizona 7 436,657 6 1,207,281 13 1,643,938 Arkansas 2 63,604 — — 2 63,604 California 76 7,339,160 9 942,356 85 8,281,516 Colorado 5 274,461 4 484,490 9 758,951 Connecticut 5 312,797 3 527,666 8 840,463 Delaware 2 197,840 2 162,721 4 360,561 District of Columbia 1 1,670 — — 1 1,670 Florida 34 2,814,690 1 119,374 35 2,934,064 Georgia 12 940,981 2 129,611 14 1,070,592 Idaho 1 45,000 — — 1 45,000 Illinois 13 1,210,705 7 1,309,975 20 2,520,680 Indiana 5 328,516 — — 5 328,516 Iowa 2 145,138 1 14,200 3 159,338 Kansas 4 569,161 — — 4 569,161 Kentucky 2 64,000 4 418,760 6 482,760 Louisiana 4 388,475 — — 4 388,475 Maine — — 1 95,000 1 95,000 Maryland 19 1,996,017 1 19,001 20 2,015,018 Massachusetts 10 572,979 6 933,102 16 1,506,081 Michigan 15 953,486 1 39,502 16 992,988 Minnesota 9 788,916 — — 9 788,916 Mississippi 3 201,300 — — 3 201,300 Missouri 13 1,598,233 1 25,120 14 1,623,353 Montana 3 38,548 — — 3 38,548 Nebraska 1 34,560 2 266,733 3 301,293 Nevada 9 227,840 1 107,041 10 334,881 New Hampshire 1 2,188 1 146,467 2 148,655 New Jersey 30 3,510,808 8 2,476,635 38 5,987,443 New Mexico 2 114,473 — — 2 114,473 New York 20 1,066,410 10 970,800 30 2,037,210 North Carolina 20 958,889 1 97,000 21 1,055,889 Ohio 12 893,853 3 242,087 15 1,135,940 Oklahoma 4 196,044 — — 4 196,044 Oregon 12 438,586 — — 12 438,586 Pennsylvania 21 2,629,959 3 2,062,761 24 4,692,720 Puerto Rico 4 223,089 1 54,352 5 277,441 Rhode Island 1 94,968 — — 1 94,968 South Carolina 4 168,636 2 214,238 6 382,874 Tennessee 5 256,743 4 63,909 9 320,652 Texas 39 2,654,205 19 1,838,880 58 4,493,085 Utah 2 78,148 1 90,553 3 168,701 Vermont 1 35,200 — — 1 35,200 Virginia 16 1,346,372 4 375,791 20 1,722,163 Washington 8 716,411 4 180,228 12 896,639 West Virginia 2 105,502 — — 2 105,502 Wisconsin 5 379,857 1 10,655 6 390,512 Total United States 469 37,720,243 114 15,626,289 583 53,346,532 Canada 40 2,846,203 15 1,713,060 55 4,559,263 Total North America 509 40,566,446 129 17,339,349 638 57,905,795 22 IRON MOUNTAIN 2023 FORM 10-K Table of Contents Part I LEASED OWNED TOTAL COUNTRY/STATE NUMBER SQUARE FEET NUMBER SQUARE FEET NUMBER SQUARE FEET International Argentina 2 134,753 4 298,864 6 433,617 Australia 41 3,010,051 1 13,885 42 3,023,936 Austria 1 2,691 1 58,771 2 61,462 Bahrain 2 33,659 — — 2 33,659 Belgium 4 234,635 — — 4 234,635 Brazil 38 2,699,755 6 291,280 44 2,991,035 Bulgaria 1 68,889 — — 1 68,889 Chile 2 3,692 17 667,790 19 671,482 China Mainland (including China - Hong Kong S.A.R., China-Taiwan and China-Macau S.A.R.) 53 2,044,506 1 20,721 54 2,065,227 Colombia 18 783,980 — — 18 783,980 Croatia 1 26,049 1 36,447 2 62,496 Cyprus 2 51,118 2 46,246 4 97,364 Czech Republic 7 138,788 — — 7 138,788 Denmark 3 161,361 — — 3 161,361 Egypt 3 113,506 1 163,611 4 277,117 England 68 5,128,168 18 598,009 86 5,726,177 Estonia 1 38,861 — — 1 38,861 Eswatini 3 6,997 — — 3 6,997 Finland 4 96,956 — — 4 96,956 France 27 2,094,071 12 936,486 39 3,030,557 Germany 17 852,231 3 308,504 20 1,160,735 Greece 9 771,863 — — 9 771,863 Hungary 7 350,590 — — 7 350,590 India 81 3,702,063 — — 81 3,702,063 Indonesia 18 527,746 2 58,965 20 586,711 Ireland 4 345,962 3 158,558 7 504,520 Jordan 1 107,639 — — 1 107,639 Kuwait 2 11,626 — — 2 11,626 Latvia 2 37,868 — — 2 37,868 Lesotho 1 2,583 — — 1 2,583 Lithuania 2 70,041 — — 2 70,041 Malaysia 11 507,622 — — 11 507,622 Mexico 10 454,982 8 585,885 18 1,040,867 Morocco 8 705,230 — — 8 705,230 The Netherlands 6 474,559 — — 6 474,559 New Zealand 6 413,959 — — 6 413,959 Northern Ireland 3 129,083 — — 3 129,083 Norway 4 155,323 — — 4 155,323 Oman 2 77,758 — — 2 77,758 Peru 2 47,265 10 433,770 12 481,035 Philippines 12 422,919 — — 12 422,919 Poland 19 802,133 — — 19 802,133 Romania 8 490,155 — — 8 490,155 Saudi Arabia 7 400,687 — — 7 400,687 Scotland 3 139,722 3 324,751 6 464,473 Serbia 2 106,540 — — 2 106,540 Singapore 8 489,049 2 186,956 10 676,005 Slovakia 5 172,769 — — 5 172,769 South Africa 15 462,543 — — 15 462,543 South Korea 8 257,233 — — 8 257,233 Spain 20 511,793 5 211,954 25 723,747 Sweden 8 1,047,265 — — 8 1,047,265 Switzerland 12 283,857 — — 12 283,857 Thailand 4 319,645 2 105,487 6 425,132 IRON MOUNTAIN 2023 FORM 10-K 23 Table of Contents Part I LEASED OWNED TOTAL COUNTRY/STATE NUMBER SQUARE FEET NUMBER SQUARE FEET NUMBER SQUARE FEET International (continued) Turkey 9 683,641 — — 9 683,641 Ukraine 10 208,050 — — 10 208,050 United Arab Emirates 7 695,118 1 434,442 8 1,129,560 Vietnam 2 54,829 — — 2 54,829 Total International 636 34,166,427 103 5,941,382 739 40,107,809 Total 1,145 74,732,873 232 23,280,731 1,377 98,013,604 The leased facilities typically have initial lease terms of five to 10 years with one or more renewal options.
Biggest changeA breakdown of owned and leased facilities by country (and by state within the United States) is listed below: LEASED OWNED TOTAL COUNTRY/STATE NUMBER SQUARE FEET NUMBER SQUARE FEET NUMBER SQUARE FEET North America United States (Including Puerto Rico) Alabama 3 293,193 — — 3 293,193 Arizona 7 486,528 6 1,207,281 13 1,693,809 Arkansas 2 63,604 — — 2 63,604 California 69 7,092,102 9 942,356 78 8,034,458 Colorado 5 274,461 4 484,490 9 758,951 Connecticut 3 208,253 3 527,666 6 735,919 Delaware 3 236,719 2 162,721 5 399,440 District of Columbia 1 1,670 — — 1 1,670 Florida 31 2,777,184 1 119,374 32 2,896,558 Georgia 13 1,100,981 2 129,611 15 1,230,592 Idaho 1 45,000 — — 1 45,000 Illinois 12 1,237,895 7 1,309,975 19 2,547,870 Indiana 4 290,116 — — 4 290,116 Iowa 1 100,000 1 14,200 2 114,200 Kansas 3 479,786 — — 3 479,786 Kentucky — — 4 418,760 4 418,760 Louisiana 4 388,475 — — 4 388,475 Maine — — 1 95,000 1 95,000 Maryland 20 1,997,098 1 19,001 21 2,016,099 Massachusetts 10 566,633 5 862,350 15 1,428,983 Michigan 11 845,398 1 39,502 12 884,900 Minnesota 10 810,337 — — 10 810,337 Mississippi 2 171,000 — — 2 171,000 Missouri 12 1,335,639 1 25,120 13 1,360,759 Montana 3 38,548 — — 3 38,548 Nebraska 1 34,560 2 266,733 3 301,293 Nevada 9 227,840 1 107,041 10 334,881 New Hampshire 1 2,188 1 146,467 2 148,655 New Jersey 27 3,375,178 8 2,476,635 35 5,851,813 New Mexico 2 114,473 — — 2 114,473 New York 17 1,003,191 10 970,800 27 1,973,991 North Carolina 21 1,073,820 1 97,000 22 1,170,820 Ohio 10 1,138,809 3 242,087 13 1,380,896 Oklahoma 4 196,044 — — 4 196,044 Oregon 12 438,586 — — 12 438,586 Pennsylvania 20 2,590,759 3 2,062,761 23 4,653,520 Puerto Rico 4 223,089 1 54,352 5 277,441 Rhode Island 1 94,968 — — 1 94,968 South Carolina 4 168,636 2 214,238 6 382,874 Tennessee 5 256,743 4 63,909 9 320,652 Texas 37 2,582,518 19 1,838,880 56 4,421,398 Utah 2 78,148 1 90,553 3 168,701 Vermont 1 35,200 — — 1 35,200 Virginia 17 1,306,303 7 1,165,472 24 2,471,775 Washington 9 729,435 4 180,228 13 909,663 West Virginia 2 105,502 — — 2 105,502 Wisconsin 4 325,520 — — 4 325,520 Total United States 440 36,942,130 115 16,334,563 555 53,276,693 Canada 39 2,769,235 14 1,652,793 53 4,422,028 Total North America 479 39,711,365 129 17,987,356 608 57,698,721 22 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part I LEASED OWNED TOTAL COUNTRY/STATE NUMBER SQUARE FEET NUMBER SQUARE FEET NUMBER SQUARE FEET International Argentina 2 134,753 4 298,864 6 433,617 Australia 46 2,913,577 1 13,885 47 2,927,462 Austria 1 2,691 1 58,771 2 61,462 Bahrain 2 33,659 — — 2 33,659 Belgium 3 190,740 — — 3 190,740 Brazil 42 2,816,571 6 291,280 48 3,107,851 Bulgaria 1 68,889 — — 1 68,889 Chile 2 3,692 18 715,894 20 719,586 China Mainland (including China - Hong Kong S.A.R., China-Taiwan and China-Macau S.A.R.) 52 1,985,570 1 20,721 53 2,006,291 Colombia 17 771,479 — — 17 771,479 Croatia 1 26,049 1 36,447 2 62,496 Cyprus 2 51,118 2 46,246 4 97,364 Czech Republic 7 138,788 — — 7 138,788 Denmark 3 161,361 — — 3 161,361 Egypt 3 113,506 1 163,611 4 277,117 England 66 5,615,341 17 552,986 83 6,168,327 Estonia 1 38,861 — — 1 38,861 Eswatini 3 6,997 — — 3 6,997 Finland 3 95,896 — — 3 95,896 France 26 2,150,804 12 936,486 38 3,087,290 Germany 17 852,231 3 308,504 20 1,160,735 Greece 10 903,245 — — 10 903,245 Hungary 7 345,645 — — 7 345,645 India 81 4,038,809 3 226,432 84 4,265,241 Indonesia 18 527,746 2 58,965 20 586,711 Ireland 7 413,662 5 178,558 12 592,220 Jordan 1 107,639 — — 1 107,639 Kuwait 2 11,626 — — 2 11,626 Latvia 2 37,868 — — 2 37,868 Lesotho 1 3,617 — — 1 3,617 Lithuania 2 70,041 — — 2 70,041 Malaysia 10 495,755 — — 10 495,755 Mexico 8 430,868 8 585,885 16 1,016,753 Morocco 7 660,484 — — 7 660,484 The Netherlands 4 412,225 — — 4 412,225 New Zealand 6 388,888 — — 6 388,888 Northern Ireland 2 55,310 — — 2 55,310 Norway 4 155,323 — — 4 155,323 Oman 2 71,059 — — 2 71,059 Peru 2 47,265 10 433,770 12 481,035 Philippines 13 427,312 — — 13 427,312 Poland 18 779,173 — — 18 779,173 Qatar 1 27,663 — — 1 27,663 Romania 7 484,773 — — 7 484,773 Saudi Arabia 7 400,687 — — 7 400,687 Scotland 2 86,386 3 324,751 5 411,137 Serbia 2 132,373 — — 2 132,373 Singapore 8 489,467 2 186,956 10 676,423 Slovakia 5 172,769 — — 5 172,769 South Africa 14 468,094 — — 14 468,094 South Korea 7 246,577 — — 7 246,577 Spain 19 511,793 4 204,527 23 716,320 Sweden 7 327,213 — — 7 327,213 Switzerland 11 287,410 — — 11 287,410 Thailand 6 375,940 2 105,487 8 481,427 IRON MOUNTAIN 2024 FORM 10-K 23 Table of Contents Part I LEASED OWNED TOTAL COUNTRY/STATE NUMBER SQUARE FEET NUMBER SQUARE FEET NUMBER SQUARE FEET International (continued) Turkey 10 694,437 — — 10 694,437 Ukraine 9 185,648 — — 9 185,648 United Arab Emirates 7 695,118 1 434,442 8 1,129,560 Vietnam 2 54,829 — — 2 54,829 Total International 631 34,197,310 107 6,183,468 738 40,380,778 Total 1,110 73,908,675 236 24,170,824 1,346 98,079,499 The leased facilities typically have initial lease terms of five to 10 years with one or more renewal options.
Our total building utilization and total racking utilization as of December 31, 2023 in Records Management and Data Management are as follows: RECORDS MANAGEMENT (1) DATA MANAGEMENT BUILDING UTILIZATION RACKING UTILIZATION BUILDING UTILIZATION RACKING UTILIZATION 77% 83% 41% 62% (1) Total building utilization and total racking utilization for Records Management includes the utilization for Global Digital Solutions and Consumer Storage.
Our total building utilization and total racking utilization as of December 31, 2024 in Records Management and Data Management are as follows: RECORDS MANAGEMENT (1) DATA MANAGEMENT BUILDING UTILIZATION RACKING UTILIZATION BUILDING UTILIZATION RACKING UTILIZATION 77% 83% 37% 57% (1) Total building utilization and total racking utilization for Records Management includes the utilization for Global Digital Solutions and Consumer Storage.
ITEM 2. PROPERTIES. As of December 31, 2023, we conducted operations through 1,145 leased facilities and 232 owned facilities. Our facilities are divided among our reportable segments and Corporate and Other as follows: Global RIM Business (1,287), Global Data Center Business (30) and Corporate and Other (60). These facilities contain a total of approximately 98.0 million square feet of space.
ITEM 2. PROPERTIES. As of December 31, 2024, we conducted operations through 1,110 leased facilities and 236 owned facilities. Our facilities are divided among our reportable segments and Corporate and Other as follows: Global RIM Business (1,211), Global Data Center Business (33) and Corporate and Other (102). These facilities contain a total of approximately 98.1 million square feet of space.
The following table sets forth a summary of the lease expirations for leases in place related to our Global Data Center Business, for which we are the lessor, as of December 31, 2023. The information set forth in the table assumes that tenants exercise no renewal options and all early termination rights.
The following table sets forth a summary of the lease expirations for leases in place related to our Global Data Center Business, for which we are the lessor, as of December 31, 2024.
YEAR NUMBER OF LEASES EXPIRING TOTAL MEGAWATTS EXPIRING PERCENTAGE OF TOTAL MEGAWATTS EXPIRING ANNUALIZED TOTAL CONTRACT RENT EXPIRING (IN THOUSANDS) PERCENTAGE OF TOTAL CONTRACT VALUE ANNUALIZED RENT 2024 935 19.5 4.5 % $ 65,564 10.9 % 2025 346 36.4 8.4 % 86,659 14.5 % 2026 242 23.3 5.4 % 52,198 8.7 % 2027 59 9.7 2.2 % 24,459 4.1 % 2028 64 58.2 13.4 % 74,435 12.4 % 2029 15 24.6 5.7 % 24,250 4.0 % 2030 5 48.6 11.2 % 53,808 9.0 % Thereafter 23 213.5 49.2 % 217,790 36.4 % Total 1,689 433.8 100.0 % $ 599,163 100.0 % 24 IRON MOUNTAIN 2023 FORM 10-K Table of Contents Part I
YEAR NUMBER OF LEASES EXPIRING TOTAL MEGAWATTS EXPIRING PERCENTAGE OF TOTAL MEGAWATTS EXPIRING ANNUALIZED TOTAL CONTRACT RENT EXPIRING (IN THOUSANDS) PERCENTAGE OF TOTAL CONTRACT VALUE ANNUALIZED RENT 2025 947 32.8 6.1 % $ 87,435 10.8 % 2026 372 28.3 5.3 % 71,103 8.8 % 2027 189 14.8 2.8 % 43,542 5.4 % 2028 111 38.5 7.2 % 69,900 8.6 % 2029 66 50.5 9.5 % 52,612 6.5 % 2030 27 54.5 10.2 % 67,744 8.4 % 2031 5 2.5 0.5 % 4,913 0.6 % Thereafter 28 311.8 58.4 % 412,800 50.9 % Total 1,745 533.7 100.0 % $ 810,049 100.0 % 24 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part I
Added
The information set forth in the table assumes that tenants will exercise any early termination rights that do not have significant penalties and will not exercise any renewal options.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

2 edited+0 added−0 removed1 unchanged
Biggest changeITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. Our common stock is traded on the NYSE under the symbol "IRM". The closing price of our common stock on the NYSE on February 16, 2024 was $67.98. As of February 16, 2024, there were 3,083 holders of record of our common stock.
Biggest changeITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. Our common stock is traded on the NYSE under the symbol "IRM". The closing price of our common stock on the NYSE on February 7, 2025 was $106.06. As of February 7, 2025, there were 3,444 holders of record of our common stock.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS We did not sell any unregistered equity securities during the three months ended December 31, 2023, nor did we repurchase any shares of our common stock during the three months ended December 31, 2023. ITEM 6. [RESERVED.]
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS We did not sell any unregistered equity securities during the three months ended December 31, 2024, nor did we repurchase any shares of our common stock during the three months ended December 31, 2024. ITEM 6. [RESERVED.]

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

119 edited+24 added−75 removed66 unchanged
Biggest changeGLOBAL RIM BUSINESS (IN THOUSANDS) YEAR ENDED DECEMBER 31, PERCENTAGE CHANGE 2023 2022 DOLLAR CHANGE ACTUAL CONSTANT CURRENCY IMPACT OF ACQUISITIONS ORGANIC GROWTH Storage Rental $ 2,834,352 $ 2,606,721 $ 227,631 8.7 % 9.0 % 0.4 % 8.6 % Service 1,827,424 1,688,394 139,030 8.2 % 8.6 % (0.5) % 9.1 % Segment Revenue $ 4,661,776 $ 4,295,115 $ 366,661 8.5 % 8.8 % — % 8.8 % Segment Adjusted EBITDA $ 2,027,037 $ 1,887,589 $ 139,448 Segment Adjusted EBITDA Margin 43.5 % 43.9 % SEGMENT ANALYSIS: GLOBAL RIM BUSINESS (IN MILLIONS) Storage Rental Revenue Service Revenue Segment Revenue Segment Adjusted EBITDA Primary factors influencing the change in revenue and Adjusted EBITDA Margin in our Global RIM Business segment for the year ended December 31, 2023 compared to the year ended December 31, 2022 include the following: • organic storage rental revenue growth driven by revenue management; • organic service revenue growth primarily driven by increases in our traditional service activity levels and growth in our Global Digital Solutions business; • a decrease in revenue of $11.9 million due to foreign currency exchange rate fluctuations; and • a 40 basis point decrease in Adjusted EBITDA Margin primarily driven by an increase in compensation and other employee-related costs and higher facilities costs, partially offset by revenue management. 46 IRON MOUNTAIN 2023 FORM 10-K Table of Contents Part II GLOBAL DATA CENTER BUSINESS (IN THOUSANDS) YEAR ENDED DECEMBER 31, PERCENTAGE CHANGE IMPACT OF ACQUISITIONS ORGANIC GROWTH 2023 2022 DOLLAR CHANGE ACTUAL CONSTANT CURRENCY Storage Rental $ 474,066 $ 372,208 $ 101,858 27.4 % 26.4 % 3.0 % 23.4 % Service 20,960 28,917 (7,957) (27.5) % (28.2) % (0.3) % (27.9) % Segment Revenue $ 495,026 $ 401,125 $ 93,901 23.4 % 22.4 % 2.7 % 19.7 % Segment Adjusted EBITDA $ 215,945 $ 175,622 $ 40,323 Segment Adjusted EBITDA Margin 43.6 % 43.8 % SEGMENT ANALYSIS: GLOBAL DATA CENTER BUSINESS (IN MILLIONS) Storage Rental Revenue Service Revenue Segment Revenue Segment Adjusted EBITDA Primary factors influencing the change in revenue and Adjusted EBITDA Margin in our Global Data Center Business segment for the year ended December 31, 2023 compared to the year ended December 31, 2022 include the following: • organic storage rental revenue growth from leases that commenced during 2023 and in prior periods, improved pricing and higher pass-through power costs, partially offset by churn of 570 basis points; • an increase in Adjusted EBITDA primarily driven by organic storage rental revenue growth; and • a 20 basis point decrease in Adjusted EBITDA Margin reflecting higher pass-through power costs, partially offset by ongoing cost management and a decline in lower margin project revenue.
Biggest changeIRON MOUNTAIN 2024 FORM 10-K 45 Table of Contents Part II GLOBAL DATA CENTER BUSINESS (IN THOUSANDS) YEAR ENDED DECEMBER 31, PERCENTAGE CHANGE IMPACT OF ACQUISITIONS ORGANIC GROWTH 2024 2023 DOLLAR CHANGE ACTUAL CONSTANT CURRENCY Storage Rental $ 606,294 $ 474,066 $ 132,228 27.9 % 27.6 % 2.8 % 24.8 % Service 13,734 20,960 (7,226) (34.5) % (34.6) % — % (34.6) % Segment Revenue $ 620,028 $ 495,026 $ 125,002 25.3 % 25.0 % 2.8 % 22.2 % Segment Adjusted EBITDA $ 282,513 $ 215,945 $ 66,568 Segment Adjusted EBITDA Margin 45.6 % 43.6 % SEGMENT ANALYSIS: GLOBAL DATA CENTER BUSINESS (IN MILLIONS) Storage Rental Revenue Service Revenue Segment Revenue Segment Adjusted EBITDA Primary factors influencing the change in revenue and Adjusted EBITDA Margin in our Global Data Center Business segment for the year ended December 31, 2024 compared to the year ended December 31, 2023 include the following: • organic storage rental revenue growth from leases that commenced during 2024 and in prior periods, improved pricing and higher pass-through power costs, partially offset by churn of 700 basis points; • an increase in Adjusted EBITDA primarily driven by organic storage rental revenue growth; and • a 200 basis point increase in Adjusted EBITDA Margin reflecting recent lease commencements, improved pricing and cost containment, partially offset by increased usage of pass-through power. 46 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part II CORPORATE AND OTHER (IN THOUSANDS) YEAR ENDED DECEMBER 31, PERCENTAGE CHANGE IMPACT OF ACQUISITIONS ORGANIC GROWTH 2024 2023 DOLLAR CHANGE ACTUAL CONSTANT CURRENCY Storage Rental $ 66,871 $ 62,227 $ 4,644 7.5 % 7.0 % 1.7 % 5.3 % Service 483,572 261,260 222,312 85.1 % 84.7 % 64.5 % 20.2 % Revenue $ 550,443 $ 323,487 $ 226,956 70.2 % 69.7 % 52.4 % 17.3 % Adjusted EBITDA $ (269,250) $ (281,305) $ 12,055 Primary factors influencing the change in revenue and Adjusted EBITDA in Corporate and Other for the year ended December 31, 2024 compared to the year ended December 31, 2023 include the following: • an increase in service revenue of $137.0 million due to our acquisition of Regency Technologies; • organic service revenue growth in our ALM business reflecting increased volume and improved component pricing; and • an increase in Adjusted EBITDA driven by service revenue improvement in our ALM business, including from the Regency Technologies acquisition, partially offset by higher compensation expense, professional fees and IT costs.
Costs are comprised of (1) restructuring costs, which include (i) site consolidation and other related exit costs, (ii) employee severance costs and (iii) certain professional fees associated with these activities and (2) other transformation costs, which include professional fees such as project management costs and costs for third party consultants who are assisting in the enablement our growth initiatives.
Costs are comprised of (1) restructuring costs, which include (i) site consolidation and other related exit costs, (ii) employee severance costs and (iii) certain professional fees associated with these activities, and (2) other transformation costs, which include professional fees such as project management costs and costs for third party consultants who are assisting in the enablement of our growth initiatives.
(2) Includes foreign currency transaction losses (gains), net, debt extinguishment expense and other, net. See Note 2.v. to Notes to Consolidated Financial Statements included in this Annual Report for additional information regarding the components of Other expense (income), net.
(2) Includes foreign currency transaction (gains) losses, net, debt extinguishment expense and other, net. See Note 2.v. to Notes to Consolidated Financial Statements included in this Annual Report for additional information regarding the components of Other expense (income), net.
Accounting for income taxes requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the tax and financial reporting bases of assets and liabilities and for loss and credit carryforwards.
INCOME TAXES Accounting for income taxes requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the tax and financial reporting bases of assets and liabilities and for loss and credit carryforwards.
RECURRING CAPITAL EXPENDITURES: • Data Center: Expenditures related to the replacement of equivalent components and overall maintenance of existing data center assets. • Real Estate: Expenditures primarily related to the replacement of components of real estate assets such as buildings, building improvements, leasehold improvements and racking structures. • Non-Real Estate: Expenditures primarily related to the replacement of containers and shred bins, warehouse equipment, fixtures, computer hardware, or third-party or internally-developed software assets that support the maintenance of existing revenues or avoidance of an increase in costs.
RECURRING CAPITAL EXPENDITURES: • Data Center: Expenditures related to the replacement of equivalent components and overall maintenance of existing data center assets. • Real Estate: Expenditures primarily related to the replacement of components of real estate assets such as buildings, building and leasehold improvements and racking structures. • Non-Real Estate: Expenditures primarily related to the replacement of containers and shred bins, warehouse equipment, fixtures, computer hardware, or third-party or internally-developed software assets that support the maintenance of existing revenues or avoidance of an increase in costs.
We estimate the fair values of the assets acquired in each acquisition as of the date of acquisition and these estimates are subject to adjustment based on the final assessments of the fair value of intangible assets (primarily customer and supplier relationship and data center lease-based intangible assets), property, plant and equipment (primarily building, building improvements, leasehold improvements, data center infrastructure and racking structures), operating leases, contingencies and income taxes (primarily deferred income taxes).
We estimate the fair values of the assets acquired in each acquisition as of the date of acquisition and these estimates are subject to adjustment based on the final assessments of the fair value of intangible assets (primarily customer and supplier relationship and data center lease-based intangible assets), property, plant and equipment (primarily buildings, building and leasehold improvements, data center infrastructure and racking structures), operating leases, contingencies and income taxes (primarily deferred income taxes).
IRON MOUNTAIN 2023 FORM 10-K 31 Table of Contents Part II ADJUSTED EPS We define Adjusted EPS as reported earnings per share fully diluted from net income (loss) attributable to Iron Mountain Incorporated (inclusive of our share of adjusted losses (gains) from our unconsolidated joint ventures) and excluding certain items, specifically: EXCLUDED • Acquisition and Integration Costs • Restructuring and other transformation • Amortization related to the write-off of certain customer relationship intangible assets • (Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate) • Other expense (income), net • Stock-based compensation expense • Non-cash amortization related to derivative instruments • Tax impact of reconciling items and discrete tax items We do not believe these excluded items to be indicative of our ongoing operating results, and they are not considered when we are forecasting our future results.
IRON MOUNTAIN 2024 FORM 10-K 31 Table of Contents Part II ADJUSTED EPS We define Adjusted EPS as reported earnings per share fully diluted from net income (loss) attributable to Iron Mountain Incorporated (inclusive of our share of adjusted losses (gains) from our unconsolidated joint ventures) and excluding certain items, specifically: EXCLUDED • Acquisition and Integration Costs • Restructuring and other transformation • Loss (gain) on disposal/write-down of property, plant and equipment, net (including real estate) • Other expense (income), net • Stock-based compensation expense • Non-cash amortization related to derivative instruments • Tax impact of reconciling items and discrete tax items • Amortization related to the write-off of certain customer relationship intangible assets We do not believe these excluded items to be indicative of our ongoing operating results, and they are not considered when we are forecasting our future results.
The fair value of the Deferred Purchase Obligation associated with the ITRenew Transaction (each as defined in Note 3 to Notes to Consolidated Financial Statements included in this Annual Report) was determined utilizing a Monte-Carlo simulation model and takes into account our forecasted projections as it relates to the underlying performance of the business.
The fair value of the deferred purchase obligation associated with the ITRenew Transaction (as defined in Note 3 to Notes to Consolidated Financial Statements included in this Annual Report) was determined utilizing a Monte-Carlo simulation model and takes into account our forecasted projections as it relates to the underlying performance of the business.
Our depreciation and amortization charges result primarily from depreciation related to storage systems, which include racking structures, buildings, building and leasehold improvements and computer systems hardware and software. Amortization relates primarily to customer and supplier relationship intangible assets, Contract Costs (as defined below in Critical Accounting Estimates ) and data center lease-based intangible assets.
Our depreciation and amortization charges result primarily from depreciation related to storage systems, which include buildings, building and leasehold improvements, data center infrastructure, racking structures and computer systems hardware and software. Amortization relates primarily to customer and supplier relationship intangible assets, Contract Costs (as defined below in Critical Accounting Estimates ) and data center lease-based intangible assets.
The following chart presents (in thousands) total Restructuring and other transformation costs related to Project Matterhorn from the inception of Project Matterhorn through December 31, 2023 and for the years ended December 31, 2023 and 2022: From the Inception of Project Matterhorn through December 31, 2023 For the Year ended December 31, 2023 For the Year ended December 31, 2022 GENERAL RESULTS OF OPERATIONS - KEY TRENDS • Our organic storage rental revenue growth is primarily driven by revenue management in our Global RIM Business segment, where we expect volume to be relatively stable in the near term, as well as by growth in our Global Data Center Business segment, primarily driven by lease commencements. • Our organic service revenue growth is primarily due to increases in our service activity.
The following chart presents (in thousands) total Restructuring and other transformation costs related to Project Matterhorn from the inception of Project Matterhorn through December 31, 2024 and for the years ended December 31, 2024 and 2023: From the Inception of Project Matterhorn through December 31, 2024 For the Year ended December 31, 2024 For the Year ended December 31, 2023 GENERAL RESULTS OF OPERATIONS - KEY TRENDS • Our organic storage rental revenue growth is primarily driven by revenue management in our Global RIM Business segment, where we expect volume to be relatively stable in the near term, as well as by growth in our Global Data Center Business segment, primarily driven by lease commencements. • Our organic service revenue growth is primarily due to increases in our service activity.
IMPAIRMENT OF TANGIBLE AND INTANGIBLE ASSETS ASSETS SUBJECT TO DEPRECIATION OR AMORTIZATION We review long-lived assets and finite-lived intangible assets for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable.
IMPAIRMENT OF TANGIBLE AND INTANGIBLE ASSETS ASSETS SUBJECT TO DEPRECIATION OR AMORTIZATION We review long-lived assets, including finite-lived intangible assets, for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable.
Our effective tax rate is subject to variability in the future due to, among other items: (i) changes in the mix of income between our QRSs and our TRSs, as well as among the jurisdictions in which we operate, (ii) tax law changes, (iii) volatility in foreign exchange gains and losses, (iv) the timing of the establishment and reversal of tax reserves, (v) our ability to utilize net operating losses that we generate and (vi) the taxability or deductibility of significant transactions.
Our effective tax rate is subject to variability in the future due to, among other items: (i) changes in the mix of income between our QRSs and our TRSs, as well as among the jurisdictions in which we operate, (ii) tax law changes, (iii) volatility in foreign exchange gains and losses, (iv) the timing of the establishment and reversal of tax reserves, (v) our ability to utilize net operating losses and interest expenses that we generate and (vi) the taxability or deductibility of significant transactions.
(3) Columns may not foot due to rounding. 32 IRON MOUNTAIN 2023 FORM 10-K Table of Contents Part II FFO (NAREIT) AND FFO (NORMALIZED) Funds from operations ("FFO") is defined by the National Association of Real Estate Investment Trusts as net income (loss) excluding depreciation on real estate assets, losses and gains on sale of real estate, net of tax, and amortization of data center leased-based intangibles ("FFO (Nareit)").
(3) Columns may not foot due to rounding. 32 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part II FFO (NAREIT) AND FFO (NORMALIZED) Funds from operations ("FFO") is defined by the National Association of Real Estate Investment Trusts as net income (loss) excluding depreciation on real estate assets, losses and gains on sale of real estate, net of tax, and amortization of data center leased-based intangibles ("FFO (Nareit)").
(2) The differences between our effective tax rates and our structural tax rate (or adjusted effective tax rates) for the years ended December 31, 2023 and 2022 are primarily due to (i) the reconciling items above, which impact our reported net income (loss) before provision (benefit) for income taxes but have an insignificant impact on our reported provision (benefit) for income taxes and (ii) other discrete tax items.
(2) The differences between our effective tax rates and our structural tax rate (or adjusted effective tax rates) for the years ended December 31, 2024 and 2023 are primarily due to (i) the reconciling items above, which impact our reported net income (loss) before provision (benefit) for income taxes but have an insignificant impact on our reported provision (benefit) for income taxes and (ii) other discrete tax items.
In order to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency fluctuations, we compare the percentage change in the results from one period to another period in this report using constant currency presentation. The constant currency growth rates are calculated by translating the 2022 results at the 2023 average exchange rates.
In order to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency fluctuations, we compare the percentage change in the results from one period to another period in this report using constant currency presentation. The constant currency growth rates are calculated by translating the 2023 results at the 2024 average exchange rates.
Due to the inherent uncertainty of future events, actual values of net assets acquired could be different from our estimated fair values and could have a material impact on our financial statements. 34 IRON MOUNTAIN 2023 FORM 10-K Table of Contents Part II Of the net assets acquired in our acquisitions, the fair value of owned buildings, including building improvements, customer and supplier relationship and data center lease-based intangible assets, racking structures and operating leases are generally the most common and most significant.
Due to the inherent uncertainty of future events, actual values of net assets acquired could be different from our estimated fair values and could have a material impact on our financial statements. 34 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part II Of the net assets acquired in our acquisitions, the fair value of owned buildings, including data center infrastructure and building improvements, customer and supplier relationship and data center lease-based intangible assets, racking structures and operating leases are generally the most common and most significant.
Our leverage and fixed charge coverage ratios under the Credit Agreement as of December 31, 2023 are as follows: DECEMBER 31, 2023 MAXIMUM/MINIMUM ALLOWABLE Net total lease adjusted leverage ratio 5.1 Maximum allowable of 7.0 Fixed charge coverage ratio 2.4 Minimum allowable of 1.5 We are in compliance with our leverage and fixed charge coverage ratios under the Credit Agreement, our bond indentures and other agreements governing our indebtedness as of December 31, 2023.
Our leverage and fixed charge coverage ratios under the Credit Agreement as of December 31, 2024 are as follows: DECEMBER 31, 2024 MAXIMUM/MINIMUM ALLOWABLE Net total lease adjusted leverage ratio 5.0 Maximum allowable of 7.0 Fixed charge coverage ratio 2.4 Minimum allowable of 1.5 We are in compliance with our leverage and fixed charge coverage ratios under the Credit Agreement, our bond indentures and other agreements governing our indebtedness as of December 31, 2024.
At December 31, 2023, no factors were identified that would alter the conclusions of our October 1, 2023 goodwill impairment analysis. In making this assessment, we considered a number of factors including operating results, business plans, anticipated future cash flows, transactions and marketplace data.
At December 31, 2024, no factors were identified that would alter the conclusions of our October 1, 2024 goodwill impairment analysis. In making this assessment, we considered a number of factors including operating results, business plans, anticipated future cash flows, transactions and marketplace data.
IRON MOUNTAIN 2023 FORM 10-K 35 Table of Contents Part II GOODWILL AND OTHER INDEFINITE-LIVED INTANGIBLE ASSETS NOT SUBJECT TO AMORTIZATION Goodwill and intangible assets with indefinite lives are not amortized but are reviewed annually for impairment, or more frequently if impairment indicators arise.
IRON MOUNTAIN 2024 FORM 10-K 35 Table of Contents Part II GOODWILL AND OTHER INDEFINITE-LIVED INTANGIBLE ASSETS NOT SUBJECT TO AMORTIZATION Goodwill and intangible assets with indefinite lives are not amortized but are reviewed annually for impairment, or more frequently if impairment indicators arise.
IRON MOUNTAIN 2023 FORM 10-K 27 Table of Contents Part II OVERVIEW PROJECT MATTERHORN In September 2022, we announced Project Matterhorn, a global program designed to accelerate the growth of our business. Project Matterhorn investments focus on transforming our operating model to a global operating model.
IRON MOUNTAIN 2024 FORM 10-K 27 Table of Contents Part II OVERVIEW PROJECT MATTERHORN In September 2022, we announced Project Matterhorn, a global program designed to accelerate the growth of our business. Project Matterhorn investments focus on transforming our operating model to a global operating model.
IRON MOUNTAIN 2023 FORM 10-K 33 Table of Contents Part II CRITICAL ACCOUNTING ESTIMATES Our discussion and analysis of our financial condition and results of operations are based upon our Consolidated Financial Statements, which have been prepared in accordance with GAAP.
IRON MOUNTAIN 2024 FORM 10-K 33 Table of Contents Part II CRITICAL ACCOUNTING ESTIMATES Our discussion and analysis of our financial condition and results of operations are based upon our Consolidated Financial Statements, which have been prepared in accordance with GAAP.
Selling, general and administrative expenses consist primarily of wages and benefits for management, administrative, IT, sales, account management and marketing personnel, as well as expenses related to communications, travel, professional fees, bad debts, training, office equipment and supplies. 28 IRON MOUNTAIN 2023 FORM 10-K Table of Contents Part II Cost of sales (excluding depreciation and amortization) and Selling, general and administrative expenses for the year ended December 31, 2023 consists of the following: COST OF SALES SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Trends in facility occupancy costs are impacted by: • the total number of facilities we occupy; • the mix of properties we own versus properties we lease; • fluctuations in per square foot occupancy costs; and • the levels of utilization of these properties.
Selling, general and administrative expenses consist primarily of wages and benefits for management, administrative, IT, sales, account management and marketing personnel, as well as expenses related to communications, travel, professional fees, bad debts, training, office equipment and supplies. 28 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part II Cost of sales (excluding depreciation and amortization) and Selling, general and administrative expenses for the year ended December 31, 2024 consists of the following: COST OF SALES SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Trends in facility occupancy costs are impacted by: • the total number of facilities we occupy; • the mix of properties we own versus properties we lease; • fluctuations in per square foot occupancy costs; • the levels of utilization of these properties; and • data center power costs.
Under our interest rate swap agreements, we receive variable rate interest payments associated with the notional amount of each interest rate swap, based upon the one-month SOFR, in exchange for the payment of fixed interest rates as specified in the interest rate swap agreements.
Under our interest rate swap agreements, we receive variable rate interest payments associated with the notional amount of each interest rate swap, based upon the SOFR, in exchange for the payment of fixed interest rates as specified in the interest rate swap agreements.
For significant acquisitions or acquisitions involving new markets or new products, we generally use third parties to assist us in estimating the fair value of owned buildings, including building improvements, customer and supplier relationship and lease-based intangible assets and market rental rates for acquired operating leases.
For significant acquisitions or acquisitions involving new markets or new products, we generally use third parties to assist us in estimating the fair value of owned buildings, including data center infrastructure and building improvements, customer and supplier relationship and lease-based intangible assets and market rental rates for acquired operating leases.
Service revenues include charges for related service activities, the most significant of which include: (1) the handling of records, including the addition of new records, temporary removal of records from storage, refiling of removed records, customer termination and permanent withdrawal fees, project revenues and courier operations consisting primarily of the pickup and delivery of records upon customer request; (2) destruction services, consisting primarily of (i) secure shredding of sensitive documents and the subsequent sale of shredded paper for recycling, the price of which can fluctuate from period to period, and (ii) the decommissioning, data erasure, processing and disposition or sale of IT hardware and component assets; (3) digital solutions, including the scanning, imaging and document conversion services of active and inactive records, and consulting services; and (4) data center services, including set up, monitoring and support of our customers' assets which are protected in our data center facilities, and special project services, including data center fitout.
Service revenues include charges for related service activities, the most significant of which include: (1) the handling of records, including the addition of new records, temporary removal of records from storage, refiling of removed records, customer termination and permanent withdrawal fees, project revenues and courier operations, consisting primarily of the pickup and delivery of records upon customer request; (2) secure shredding of sensitive documents and the subsequent sale of shredded paper for recycling, the price of which can fluctuate from period to period; (3) the decommissioning, data erasure, processing and disposition, and recycling or sale of IT hardware and component assets; (4) digital solutions, including the scanning, imaging and document conversion services of active and inactive records, consulting services and the sale of software as a service; and (5) data center services, including set up, monitoring and support of our customers' assets which are protected in our data center facilities, and special project services, including data center fitout.
For acquisitions that are not significant or do not involve new markets or new products, we generally use third parties to assist us in estimating the fair value of acquired owned buildings, including building improvements, and market rental rates for acquired operating leases.
For acquisitions that are not significant or do not involve new markets or new products, we generally use third parties to assist us in estimating the fair value of owned buildings, including data center infrastructure and building improvements, and market rental rates for acquired operating leases.
The remaining amount available for borrowing under the Revolving Credit Facility as of December 31, 2023, which is based on IMI’s leverage ratio, the last 12 months' earnings before interest, taxes, depreciation and amortization and rent expense ("EBITDAR"), other adjustments as defined in the Credit Agreement and current external debt, was $2,245.2 million (which amount represents the maximum availability as of such date).
The remaining amount available for borrowing under the Revolving Credit Facility as of December 31, 2024, which is based on IMI’s leverage ratio, the last 12 months' earnings before interest, taxes, depreciation and amortization and rent expense ("EBITDAR"), other adjustments as defined in the Credit Agreement and current external debt, was $2,621.2 million (which amount represents the maximum availability as of such date).
(2) Tax expense associated with the gain on sale of real estate for the years ended December 31, 2023 and 2022 was approximately $0.5 million and $0.8 million, respectively. (3) Includes amortization expense for Data Center In-Place Leases and Data Center Tenant Relationships as defined in Note 2.m. to Notes to Consolidated Financial Statements included in this Annual Report.
(2) Tax expense associated with the gain on sale of real estate for the years ended December 31, 2024 and 2023 was approximately $1.1 million and $0.5 million, respectively. (3) Includes amortization expense for Data Center In-Place Leases and Data Center Tenant Relationships as defined in Note 2.m. to Notes to Consolidated Financial Statements included in this Annual Report.
We did not record impairment charges for any of our long-lived assets or finite-lived intangibles during the years ended December 31, 2023 and 2022.
We did not record impairment charges for any of our long-lived assets or finite-lived intangibles during the years ended December 31, 2024 and 2023.
We use discounted cash flow models to determine the fair value of customer and supplier relationship intangible assets, which requires a significant amount of judgment by management, including estimating expected lives of the relationships, expected future cash flows and discount rates.
When estimating fair values internally, we use discounted cash flow models to determine the fair value of customer and supplier relationship intangible assets, which requires a significant amount of judgment by management, including estimating expected lives of the relationships, expected future cash flows and discount rates.
GROWTH INVESTMENT CAPITAL EXPENDITURES: • Data Center: Expenditures primarily related to investments in the construction of data center facilities (including the acquisition of land), as well as investments to drive revenue growth, expand capacity or achieve operational or cost efficiencies. • Real Estate: Expenditures primarily related to investments in land, buildings, building improvements, leasehold improvements and racking structures to grow our revenues, extend the useful life of an asset or achieve operational or cost efficiencies. • Innovation and Other: Discretionary capital expenditures for significant new products and services as well as computer hardware and software to support new products and services or to achieve operational or cost efficiencies.
GROWTH INVESTMENT CAPITAL EXPENDITURES: • Data Center: Expenditures primarily related to investments in the construction of data center facilities (including the acquisition of land), as well as investments to drive revenue growth, expand capacity or achieve operational or cost efficiencies. • Real Estate: Expenditures primarily related to investments in land, buildings, building and leasehold improvements and racking structures to grow our revenues, extend the useful life of an asset or achieve operational or cost efficiencies. • Innovation and Other: Discretionary capital expenditures for new products and services as well as computer hardware and software to drive revenue growth, expand capacity or to achieve operational cost efficiencies in businesses other than our data center business.
In April 2023, in anticipation of the discontinuance of the LIBOR reference rate on June 30, 2023, we terminated interest rate swap agreements with notional amounts totaling $350.0 million that were indexed to the one-month LIBOR benchmark rate. The terminated swap agreements had associated unrealized gains at the termination date of approximately $10.1 million.
In April 2023, in anticipation of the discontinuance of the London Inter-Bank Offered Rate ("LIBOR") reference rate on June 30, 2023, we terminated interest rate swap agreements with notional amounts totaling $350.0 million that were indexed to the one-month LIBOR benchmark rate. The terminated swap agreements had associated unrealized gains at the termination date of approximately $10.1 million.
Generally, the Credit Agreement and the bond indentures use a trailing four fiscal quarter basis for purposes of the relevant calculations and require certain adjustments and exclusions for purposes of those calculations, which make the calculation of financial performance for purposes of those calculations under the Credit Agreement and bond indentures not directly comparable to Adjusted EBITDA as presented herein.
Generally, the Credit Agreement and the bond indentures use a trailing four fiscal quarter basis for purposes of the relevant calculations and require certain adjustments and exclusions for purposes of those calculations, which make the calculation of financial performance under the Credit Agreement and bond indentures not directly comparable to Adjusted EBITDA as presented herein. These adjustments can be significant.
During the years ended December 31, 2023 and 2022, we incurred approximately $175.2 million and $41.9 million, respectively, of Restructuring and other transformation costs related to Project Matterhorn, which are comprised of (1) restructuring costs, which include (i) site consolidation and other related exit costs, (ii) employee severance costs and (iii) certain professional fees associated with these activities and (2) other transformation costs, which include professional fees such as project management costs and costs for third party consultants who are assisting in the enablement our growth initiatives.
During the years ended December 31, 2024 and 2023, we incurred approximately $161.4 million and $175.2 million, respectively, of Restructuring and other transformation costs related to Project Matterhorn, which are comprised of (1) restructuring costs, which include (i) site consolidation and other related exit costs, (ii) employee severance costs and (iii) certain professional fees associated with these activities, and (2) other transformation costs, which include professional fees such as project management costs and costs for third party consultants who are assisting in the enablement of our growth initiatives.
We have performed our annual goodwill impairment review as of October 1, 2023 and 2022. We concluded that as of October 1, 2023 and 2022, goodwill was not impaired.
We have performed our annual goodwill impairment review as of October 1, 2024 and 2023. We concluded that as of October 1, 2024 and 2023, goodwill was not impaired.
For a discussion of our results for the year ended December 31, 2022 compared to the year ended December 31, 2021, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-K filed with the SEC on February 23, 2023.
For a discussion of our results for the year ended December 31, 2023 compared to the year ended December 31, 2022, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-K filed with the SEC on February 22, 2024.
The following table presents our capital spend for 2023 and 2022 organized by the type of the spending as described above.
The following table presents our capital spend for 2024 and 2023 organized by the type of the spending as described above.
We have assessed the sensitivity of these assumptions on each of our reporting units as of October 1, 2023.
We have assessed the sensitivity of these assumptions on each of our reporting units as of October 1, 2024.
Our revenues consist of storage rental revenues as well as service revenues and are reflected net of sales and value-added taxes.
Our revenues consist of storage rental revenues and service revenues and are reflected net of sales and value-added taxes.
Cost of sales (excluding depreciation and amortization) consists primarily of labor, including wages and benefits for field personnel, facility occupancy costs (including rent and utilities), transportation expenses (including vehicle leases and fuel), other product cost of sales and other equipment costs and supplies. Of these, labor and facility occupancy costs are the most significant.
Cost of sales (excluding depreciation and amortization) consists primarily of labor, including wages and benefits for field personnel, facility occupancy costs (including rent and utilities), data center pass-through power costs, transportation expenses (including vehicle leases and fuel), other product cost of sales and other equipment costs and supplies. Of these, labor and facility occupancy costs are the most significant.
These losses resulted primarily from the impact of changes in the exchange rate of the British pound sterling against the United States dollar compared to December 31, 2022 on our intercompany balances with and between certain of our subsidiaries.
These gains resulted primarily from the impact of changes in the exchange rate of the British pound sterling and the Euro against the United States dollar compared to December 31, 2023 on our intercompany balances with and between certain of our subsidiaries.
IRON MOUNTAIN 2023 FORM 10-K 29 Table of Contents Part II The following table is a comparison of underlying average exchange rates of the foreign currencies that had the most significant impact on our United States dollar-reported revenues and expenses: PERCENTAGE OF UNITED STATES DOLLAR- REPORTED REVENUE FOR THE YEAR ENDED DECEMBER 31, AVERAGE EXCHANGE RATES FOR THE YEAR ENDED DECEMBER 31, PERCENTAGE STRENGTHENING / (WEAKENING) OF FOREIGN CURRENCY 2023 2022 2023 2022 Australian dollar 2.6 % 2.8 % $ 0.664 $ 0.695 (4.5) % Brazilian real 1.8 % 1.8 % $ 0.200 $ 0.194 3.1 % British pound sterling 7.2 % 6.5 % $ 1.243 $ 1.237 0.5 % Canadian dollar 5.1 % 5.3 % $ 0.741 $ 0.769 (3.6) % Euro 6.6 % 7.0 % $ 1.081 $ 1.054 2.6 % The percentage of United States dollar-reported revenues for all other foreign currencies was 12.7% for both of the years ended December 31, 2023 and 2022. 30 IRON MOUNTAIN 2023 FORM 10-K Table of Contents Part II NON-GAAP MEASURES ADJUSTED EBITDA We define Adjusted EBITDA as net income (loss) before interest expense, net, provision (benefit) for income taxes, depreciation and amortization (inclusive of our share of Adjusted EBITDA from our unconsolidated joint ventures), and excluding certain items we do not believe to be indicative of our core operating results, specifically: EXCLUDED • Acquisition and Integration Costs (as defined below) • Restructuring and other transformation • (Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate) • Other expense (income), net • Stock-based compensation expense Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenues.
IRON MOUNTAIN 2024 FORM 10-K 29 Table of Contents Part II The following table is a comparison of underlying average exchange rates of the foreign currencies that had the most significant impact on our United States dollar-reported revenues and expenses: PERCENTAGE OF UNITED STATES DOLLAR- REPORTED REVENUE FOR THE YEAR ENDED DECEMBER 31, AVERAGE EXCHANGE RATES FOR THE YEAR ENDED DECEMBER 31, PERCENTAGE (WEAKENING) / STRENGTHENING OF FOREIGN CURRENCY 2024 2023 2024 2023 Australian dollar 2.6 % 2.6 % $ 0.660 $ 0.664 (0.6) % British pound sterling 6.9 % 7.2 % $ 1.278 $ 1.243 2.8 % Canadian dollar 4.9 % 5.1 % $ 0.730 $ 0.741 (1.5) % Euro 6.8 % 6.6 % $ 1.082 $ 1.081 0.1 % The percentage of United States dollar-reported revenues for all other foreign currencies was 13.6% and 14.5% for the years ended December 31, 2024 and 2023, respectively. 30 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part II NON-GAAP MEASURES ADJUSTED EBITDA We define Adjusted EBITDA as net income (loss) before interest expense, net, provision (benefit) for income taxes, depreciation and amortization (inclusive of our share of Adjusted EBITDA from our unconsolidated joint ventures), and excluding certain items we do not believe to be indicative of our core operating results, specifically: EXCLUDED • Acquisition and Integration Costs (as defined below) • Restructuring and other transformation • Loss (gain) on disposal/write-down of property, plant and equipment, net (including real estate) • Other expense (income), net • Stock-based compensation expense • Intangible impairments Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenues.
Our structural tax rate for purposes of the calculation of Adjusted EPS for the years ended December 31, 2023 and 2022 was 12.3% and 15.2%, respectively.
Our structural tax rate for purposes of the calculation of Adjusted EPS for the years ended December 31, 2024 and 2023 was 15.6% and 12.3%, respectively.
On or after the par call date, we may redeem the 7% Notes due 2029 at a price equal to 100% of the principal amount being redeemed, together with accrued and unpaid interest to, but excluding, the redemption date. The 7% Notes due 2029 were issued at 100% of par.
On or after the par call date, we may redeem the 6 1 / 4 % Notes at a price equal to 100% of the principal amount being redeemed, together with accrued and unpaid interest to, but excluding, the redemption date. The 6 1 / 4 % Notes were issued at 100% of par.
Our reporting units at which level we performed our goodwill impairment analysis as of October 1, 2023 were as follows: • North American Records and Information Management reporting unit ("North America RIM") • Europe Records and Information Management reporting unit ("Europe RIM") • Middle East, North Africa, Turkey and South Africa Records Information Management reporting unit ("MENATSA RIM") • Latin America Records and Information Management reporting unit ("Latin America RIM") • Asia, Australia and New Zealand Records and Information Management reporting unit ("APAC RIM") • Entertainment Services • Global Data Center • Fine Arts • ALM See Note 2.l. to Notes to Consolidated Financial Statements included in this Annual Report for a description of our reporting units.
Our reporting units at which level we performed our goodwill impairment analysis as of October 1, 2024 were as follows: • North American Records and Information Management reporting unit ("North America RIM") • Europe Records and Information Management reporting unit ("Europe RIM") • Latin America Records and Information Management reporting unit ("Latin America RIM") • Asia, Australia and New Zealand Records and Information Management reporting unit ("APAC RIM") • Media and Archive Services (formerly Entertainment Services) • Global Data Center • Fine Arts • ALM See Note 2.l. to Notes to Consolidated Financial Statements included in this Annual Report for a description of our reporting units.
These gains are included in Accumulated other comprehensive items, net and will be reclassified into earnings as reductions to interest expense from the termination date through March 2024, the original maturity date of these interest rate swap agreements.
These gains were included in Accumulated other comprehensive items, net and have been reclassified into earnings as reductions to interest expense from the termination date through March 2024, the original maturity date of these interest rate swap agreements.
Depreciation expense increased $46.9 million, or 9.8%, on a reported dollar basis for the year ended December 31, 2023 compared to the year ended December 31, 2022. See Note 2.i. to Notes to Consolidated Financial Statements included in this Annual Report for additional information regarding the useful lives over which our property, plant and equipment is depreciated.
See Note 2.i. to Notes to Consolidated Financial Statements included in this Annual Report for additional information regarding the useful lives over which our property, plant and equipment is depreciated. Amortization expense increased $21.3 million, or 8.5%, on a reported dollar basis for the year ended December 31, 2024 compared to the year ended December 31, 2023.
CREDIT AGREEMENT Our credit agreement (the "Credit Agreement") consists of a revolving credit facility (the "Revolving Credit Facility"), a term loan A facility (the "Term Loan A") and two term loan B facilities (the "Term Loan B due 2026" and the "Term Loan B due 2031").
CREDIT AGREEMENT Our credit agreement (the "Credit Agreement") consists of a revolving credit facility (the "Revolving Credit Facility"), a term loan A facility (the "Term Loan A") and a term loan B facility (the "Term Loan B due 2031").
Prior to the par call date, we may redeem the 7% Notes due 2029 at the redemption price or make-whole premium specified in the indenture governing the 7% Notes due 2029, together with accrued and unpaid interest to, but excluding, the redemption date.
Prior to the par call date, we may redeem the 6 1 / 4 % Notes at the redemption price or make-whole premium specified in the indenture governing the 6 1 / 4 % Notes, together with accrued and unpaid interest to, but excluding, the redemption date.
RECONCILIATION OF REPORTED EPS—FULLY DILUTED FROM NET INCOME (LOSS) ATTRIBUTABLE TO IRON MOUNTAIN INCORPORATED TO ADJUSTED EPS—FULLY DILUTED FROM NET INCOME (LOSS) ATTRIBUTABLE TO IRON MOUNTAIN INCORPORATED: YEAR ENDED DECEMBER 31, 2023 2022 Reported EPS—Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated $ 0.63 $ 1.90 Add/(Deduct): Acquisition and Integration Costs 0.09 0.16 Restructuring and other transformation 0.60 0.14 Amortization related to the write-off of certain customer relationship intangible assets — 0.02 (Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate) (0.04) (0.31) Other expense (income), net, excluding our share of losses (gains) from our unconsolidated joint ventures 0.34 (0.28) Stock-based compensation expense 0.25 0.19 Non-cash amortization related to derivative instruments (1) 0.07 0.03 Tax impact of reconciling items and discrete tax items (2) (0.12) (0.08) Income (Loss) Attributable to Noncontrolling Interests 0.01 0.02 Adjusted EPS—Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated (3) $ 1.82 $ 1.79 (1) Relates to the amortization of the excluded component of our cross-currency swap agreements, which is recognized on a straight-line basis as a component of Interest expense, net in our Consolidated Statements of Operations.
RECONCILIATION OF REPORTED EPS—FULLY DILUTED FROM NET INCOME (LOSS) ATTRIBUTABLE TO IRON MOUNTAIN INCORPORATED TO ADJUSTED EPS—FULLY DILUTED FROM NET INCOME (LOSS) ATTRIBUTABLE TO IRON MOUNTAIN INCORPORATED: YEAR ENDED DECEMBER 31, 2024 2023 Reported EPS—Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated $ 0.61 $ 0.63 Add/(Deduct): Acquisition and Integration Costs 0.12 0.09 Restructuring and other transformation 0.54 0.60 Loss (gain) on disposal/write-down of property, plant and equipment, net (including real estate) 0.02 (0.04) Other expense (income), net, excluding our share of losses (gains) from our unconsolidated joint ventures 0.13 0.34 Stock-based compensation expense 0.40 0.25 Non-cash amortization related to derivative instruments (1) 0.06 0.07 Tax impact of reconciling items and discrete tax items (2) (0.12) (0.12) Income (Loss) Attributable to Noncontrolling Interests 0.01 0.01 Adjusted EPS—Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated (3) $ 1.77 $ 1.82 (1) Relates to the amortization of the excluded component of our cross-currency swap agreements, which is recognized on a straight-line basis as a component of Interest expense, net in our Consolidated Statements of Operations.
We expect organic service revenue growth in 2024 to benefit from our new and existing digital offerings and ALM, as well as our traditional services. • We expect continued total revenue and Adjusted EBITDA growth in 2024 as a result of our focus on new product and service offerings, innovation, customer solutions and market expansion in line with our Project Matterhorn objectives.
We expect organic service revenue growth in 2025 to benefit from our new and existing Global Digital Solutions offerings and ALM, as well as our traditional services. • We expect continued total revenue and Adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") growth in 2025 as a result of our focus on new product and service offerings, innovation, customer solutions and market expansion in line with our Project Matterhorn objectives.
We noted that, based on the estimated fair value of all of our reporting units determined as of October 1, 2023: • a hypothetical decrease of 10% in the expected annual future cash flows of these reporting units, with all other assumptions unchanged, would have decreased the estimated fair value of our reporting units as of October 1, 2023 by a range of approximately 7.7% to 11.5% but would not, however, have resulted in the carrying value of any of our reporting units exceeding their estimated fair value; and • a hypothetical increase of 100 basis points in the discount rate, with all other assumptions unchanged, would have decreased the estimated fair value of our reporting units as of October 1, 2023 by a range of approximately 2.7% to 15.4% but would not, however, have resulted in the carrying value of any of our reporting units exceeding their estimated fair value.
We noted that, based on the estimated fair value of all of our reporting units determined as of October 1, 2024: • a hypothetical decrease of 10% in the expected annual future cash flows of these reporting units, with all other assumptions unchanged, would have decreased the estimated fair value of our reporting units as of October 1, 2024 by a range of approximately 9.9% to 12.5% but would not, however, have resulted in the carrying value of any of our reporting units exceeding their estimated fair value; and • a hypothetical increase of 100 basis points in the discount rate, with all other assumptions unchanged, would have decreased the estimated fair value of our reporting units as of October 1, 2024 by a range of approximately 3.8% to 14.0% but would not, however, have resulted in the carrying value of any of our reporting units exceeding their estimated fair value.
As of December 31, 2023, we had various outstanding letters of credit totaling $4.8 million under the Revolving Credit Facility.
As of December 31, 2024, we had various outstanding letters of credit totaling $7.8 million under the Revolving Credit Facility.
DEPRECIATION AND AMORTIZATION Our depreciation and amortization charges result primarily from depreciation related to storage systems, which include racking structures, buildings, building and leasehold improvements and computer systems hardware and software. Amortization relates primarily to customer and supplier relationship intangible assets, Contract Costs and data center lease-based intangible assets. Both depreciation and amortization are impacted by the timing of acquisitions.
DEPRECIATION AND AMORTIZATION Our depreciation and amortization charges result primarily from depreciation related to storage systems, which include buildings, building and leasehold improvements, data center infrastructure, racking structures and computer systems hardware and software. Amortization relates primarily to customer and supplier relationship intangible assets, Contract Costs and data center lease-based intangible assets.
Discrete tax items resulted in a (benefit) provision for income taxes of $(18.1) million and $(11.9) million for the years ended December 31, 2023 and 2022, respectively.
Discrete tax items resulted in a (benefit) provision for income taxes of $(6.2) million and $(18.1) million for the years ended December 31, 2024 and 2023, respectively.
We do not use a Market Approach when determining the fair value of our ALM reporting unit given a lack of directly comparable publicly traded guideline companies to ALM.
The fair value of our ALM reporting unit was determined using a Discounted Cash Flow Model approach. We do not use a Market Approach when determining the fair value of our ALM reporting unit given a lack of directly comparable publicly traded guideline companies to ALM.
In addition, there were gains and losses recorded in Other expense (income), net for which there was no tax impact. The benefits derived from the dividends paid deduction of $82.6 million and the differences in the tax rates to which our foreign earnings are subject of $22.2 million.
In addition, we recorded gains and losses in Other expense (income), net during the period, for which there was no tax impact. The benefits derived from the dividends paid deduction of $39.3 million and the differences in the tax rates to which our foreign earnings are subject of $6.9 million.
The total net proceeds of approximately $990.0 million from the issuance of the 7% Notes due 2029, after deducting the initial purchasers' commissions, were used to repay outstanding borrowings under the Revolving Credit Facility.
The total net proceeds of approximately $1,188.0 million from the issuance, after deducting the initial purchasers' commissions, were used to repay a portion of the outstanding borrowings under the Revolving Credit Facility.
As of December 31, 2023 and 2022, we have approximately $520.0 million and $354.8 million, respectively, in notional value outstanding on our interest rate swap agreements, with maturity dates ranging from October 2025 through February 2026.
As of December 31, 2024 and 2023, we have approximately $1,482.0 million and $520.0 million, respectively, in notional value outstanding on our interest rate swap agreements. As of December 31, 2024, our interest rate swap agreements have maturity dates ranging from October 2025 through May 2027.
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (IN THOUSANDS): YEAR ENDED DECEMBER 31, 2023 2022 Net Income (Loss) $ 187,263 $ 562,149 Add/(Deduct): Interest expense, net 585,932 488,014 Provision (benefit) for income taxes 39,943 69,489 Depreciation and amortization 776,159 727,595 Acquisition and Integration Costs (1) 25,875 47,746 Restructuring and other transformation 175,215 41,933 (Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate) (12,825) (93,268) Other expense (income), net, excluding our share of losses (gains) from our unconsolidated joint ventures (2) 98,891 (83,268) Stock-based compensation expense 73,799 56,861 Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures 11,425 9,806 Adjusted EBITDA $ 1,961,677 $ 1,827,057 (1) Represent operating expenditures directly associated with the closing and integration activities of our business acquisitions that have closed, or are highly probable of closing, and include (i) advisory, legal and professional fees to complete business acquisitions and (ii) costs to integrate acquired businesses into our existing operations, including move, severance and system integration costs (collectively, "Acquisition and Integration Costs").
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (IN THOUSANDS): YEAR ENDED DECEMBER 31, 2024 2023 Net Income (Loss) $ 183,666 $ 187,263 Add/(Deduct): Interest expense, net 721,559 585,932 Provision (benefit) for income taxes 60,872 39,943 Depreciation and amortization 900,905 776,159 Acquisition and Integration Costs (1) 35,842 25,875 Restructuring and other transformation 161,359 175,215 Loss (gain) on disposal/write-down of property, plant and equipment, net (including real estate) 6,196 (12,825) Other expense (income), net, excluding our share of losses (gains) from our unconsolidated joint ventures (2) 39,159 98,891 Stock-based compensation expense 118,138 73,799 Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures 8,684 11,425 Adjusted EBITDA $ 2,236,380 $ 1,961,677 (1) Represent operating expenditures directly associated with the closing and integration activities of our business acquisitions that have closed, or are highly probable of closing, and include (i) advisory, legal and professional fees to complete business acquisitions and (ii) costs to integrate acquired businesses into our existing operations, including move, severance and system integration costs (collectively, "Acquisition and Integration Costs").
STORAGE RENTAL REVENUE AND SERVICE REVENUE Primary factors influencing the change in reported storage rental revenue and reported service revenue for the year ended December 31, 2023 compared to the year ended December 31, 2022 include the following: STORAGE RENTAL REVENUE • organic storage rental revenue growth driven by increased volume in faster growing markets and our Global Data Center Business segment and revenue management; and • a decrease of $2.5 million due to foreign currency exchange rate fluctuations.
STORAGE RENTAL REVENUE AND SERVICE REVENUE Primary factors influencing the change in reported storage rental revenue and reported service revenue for the year ended December 31, 2024 compared to the year ended December 31, 2023 include the following: STORAGE RENTAL REVENUE • organic storage rental revenue growth driven by increased volume in faster growing markets and our Global Data Center Business segment and revenue management.
IRON MOUNTAIN 2023 FORM 10-K 55 Table of Contents Part II REGENCY TECHNOLOGIES On January 3, 2024, in order to expand our ALM business, we acquired RSR Partners, LLC (doing business as Regency Technologies), an IT asset disposition services provider with operations throughout the United States, for an initial purchase price of approximately $200.0 million, with $125.0 million paid at closing, funded by borrowings under the Revolving Credit Facility, and the remaining amount to be paid in 2025 (the "Regency Transaction").
REGENCY TECHNOLOGIES On January 3, 2024, in order to expand our ALM business, we acquired 100% of RSR Partners, LLC (doing business as Regency Technologies), an IT asset disposition services provider with operations throughout the United States, for an initial purchase price of approximately $200.0 million, subject to certain working capital adjustments at, and subsequent to, the closing, with $125.0 million paid at closing, funded by borrowings under the Revolving Credit Facility, and the remaining $75.0 million (the "January 2025 Payment"), paid in January 2025 (the "Regency Transaction").
CASH FLOWS FROM OPERATING ACTIVITIES For the year ended December 31, 2023, net cash flows provided by operating activities increased by $185.9 million compared to the prior year period primarily due to an increase in cash from working capital of $211.9 million, primarily related to the timing of accounts receivable collections, partially offset by a decrease in net income (excluding non-cash charges) of $26.0 million.
CASH FLOWS FROM OPERATING ACTIVITIES For the year ended December 31, 2024, net cash flows provided by operating activities increased by $83.1 million compared to the prior year period primarily due to an increase in net income (excluding non-cash charges) of $114.9 million, partially offset by a decrease in cash from working capital of $31.8 million. B.
The following is a summary of the Global Data Center and ALM reporting units including the goodwill balance (in thousands), the percentage by which the fair value of the reporting units exceeded their carrying values and certain key assumptions used by us in determining the fair value of the reporting units as of October 1, 2023: REPORTING UNIT GOODWILL BALANCE AT OCTOBER 1, 2023 PERCENTAGE BY WHICH THE FAIR VALUE OF THE REPORTING UNIT EXCEEDED THE REPORTING UNIT CARRYING VALUE AS OF OCTOBER 1, 2023 KEY ASSUMPTIONS IN THE FAIR VALUE OF REPORTING UNIT MEASUREMENT AS OF OCTOBER 1, 2023 DISCOUNT RATE AVERAGE ANNUAL ADJUSTED EBITDA MARGIN USED IN DISCOUNTED CASH FLOW AVERAGE ANNUAL CAPITAL EXPENDITURES AS PERCENTAGE OF REVENUE (1) TERMINAL GROWTH RATE (2) Global Data Center $447,931 31.2% 9.0% 45.0% 19.7% 4.0% ALM 579,054 37.7% 16.5% 13.6% 1.2% 3.5% (1) For purposes of our goodwill impairment analysis, the term "capital expenditures" includes both growth investment and recurring capital expenditures.
The following is a summary of the ALM reporting unit including the goodwill balance (in thousands), the percentage by which the fair value of the reporting unit exceeded its carrying value and certain key assumptions used by us in determining the fair value of the reporting unit as of October 1, 2024: REPORTING UNIT GOODWILL BALANCE AT OCTOBER 1, 2024 PERCENTAGE BY WHICH THE FAIR VALUE OF THE REPORTING UNIT EXCEEDED THE REPORTING UNIT CARRYING VALUE AS OF OCTOBER 1, 2024 KEY ASSUMPTIONS IN THE FAIR VALUE OF REPORTING UNIT MEASUREMENT AS OF OCTOBER 1, 2024 DISCOUNT RATE AVERAGE ANNUAL ADJUSTED EBITDA MARGIN USED IN DISCOUNTED CASH FLOW AVERAGE ANNUAL CAPITAL EXPENDITURES AS PERCENTAGE OF REVENUE (1) TERMINAL GROWTH RATE (2) ALM $748,000 57.4% 15.5% 15.4% 1.4% 3.5% (1) For purposes of our goodwill impairment analysis, the term "capital expenditures" includes both growth investment and recurring capital expenditures.
Our definition of FFO (Normalized) excludes certain items included in FFO (Nareit) that we believe are not indicative of our core operating results, specifically: EXCLUDED • Acquisition and Integration Costs • Restructuring and other transformation • (Gain) loss on disposal/write-down of property, plant and equipment, net (excluding real estate) • Other expense (income), net • Stock-based compensation expense • Non-cash amortization related to derivative instruments • Real estate financing lease depreciation • Tax impact of reconciling items and discrete tax items RECONCILIATION OF NET INCOME (LOSS) TO FFO (NAREIT) AND FFO (NORMALIZED) (IN THOUSANDS): YEAR ENDED DECEMBER 31, 2023 2022 Net Income (Loss) $ 187,263 $ 562,149 Add/(Deduct): Real estate depreciation (1) 322,045 307,895 (Gain) loss on sale of real estate, net of tax (2) (16,656) (94,059) Data center lease-based intangible assets amortization (3) 22,322 16,955 Our share of FFO (Nareit) reconciling items from our unconsolidated joint ventures 2,226 — FFO (Nareit) 517,200 792,940 Add/(Deduct): Acquisition and Integration Costs 25,875 47,746 Restructuring and other transformation 175,215 41,933 Loss (gain) on disposal/write-down of property, plant and equipment, net (excluding real estate) 4,307 1,564 Other expense (income), net, excluding our share of losses (gains) from our unconsolidated joint ventures 98,891 (83,268) Stock-based compensation expense 73,799 56,861 Non-cash amortization related to derivative instruments 21,097 9,100 Real estate financing lease depreciation 12,019 13,197 Tax impact of reconciling items and discrete tax items (4) (35,307) (25,190) Our share of FFO (Normalized) reconciling items from our unconsolidated joint ventures (374) 2,874 FFO (Normalized) $ 892,722 $ 857,757 (1) Includes depreciation expense related to owned real estate assets (land improvements, buildings, building improvements, leasehold improvements and racking), excluding depreciation related to real estate financing leases.
Our definition of FFO (Normalized) excludes certain items included in FFO (Nareit) that we believe are not indicative of our core operating results, specifically: EXCLUDED • Acquisition and Integration Costs • Restructuring and other transformation • Loss (gain) on disposal/write-down of property, plant and equipment, net (excluding real estate) • Other expense (income), net • Stock-based compensation expense • Non-cash amortization related to derivative instruments • Real estate financing lease depreciation • Tax impact of reconciling items and discrete tax items • Intangible impairments • (Income) loss from discontinued operations, net of tax RECONCILIATION OF NET INCOME (LOSS) TO FFO (NAREIT) AND FFO (NORMALIZED) (IN THOUSANDS): YEAR ENDED DECEMBER 31, 2024 2023 Net Income (Loss) $ 183,666 $ 187,263 Add/(Deduct): Real estate depreciation (1) 367,362 322,045 (Gain) loss on sale of real estate, net of tax (2) (6,698) (16,656) Data center lease-based intangible assets amortization (3) 22,304 22,322 Our share of FFO (Nareit) reconciling items from our unconsolidated joint ventures 4,830 2,226 FFO (Nareit) 571,464 517,200 Add/(Deduct): Acquisition and Integration Costs 35,842 25,875 Restructuring and other transformation 161,359 175,215 Loss (gain) on disposal/write-down of property, plant and equipment, net (excluding real estate) 14,025 4,307 Other expense (income), net, excluding our share of losses (gains) from our unconsolidated joint ventures 39,159 98,891 Stock-based compensation expense 118,138 73,799 Non-cash amortization related to derivative instruments 16,705 21,097 Real estate financing lease depreciation 13,135 12,019 Tax impact of reconciling items and discrete tax items (4) (37,248) (35,307) Our share of FFO (Normalized) reconciling items from our unconsolidated joint ventures (17) (374) FFO (Normalized) $ 932,562 $ 892,722 (1) Includes depreciation expense related to owned real estate assets (land improvements, buildings, building and leasehold improvements, data center infrastructure and racking structures), excluding depreciation related to real estate financing leases.
The carrying value and equity interest in our joint venture at December 31, 2023 is as follows (in thousands): DECEMBER 31, 2023 CARRYING VALUE EQUITY INTEREST Joint venture with AGC Equity Partners $ 57,874 20.00 % NET OPERATING LOSSES At December 31, 2023, we have federal net operating loss carryforwards of $109.6 million which can be carried forward indefinitely, of which $88.7 million is expected to be realized to reduce future federal taxable income.
The carrying value and equity interest in our unconsolidated joint venture at December 31, 2024 is as follows (in thousands): December 31, 2024 CARRYING VALUE EQUITY INTEREST Joint venture with AGC Equity Partners $ 61,075 20.00 % NET OPERATING LOSSES At December 31, 2024, we have federal net operating loss carryforwards of $95.5 million and disallowed interest expense carryforwards of $152.2 million, both of which can be carried forward indefinitely, and of which $89.2 million and $68.7 million, respectively, are expected to be realized to reduce future federal taxable income.
IRON MOUNTAIN 2023 FORM 10-K 39 Table of Contents Part II REVENUES Total revenues consist of the following (in thousands): YEAR ENDED DECEMBER 31, PERCENTAGE CHANGE 2023 2022 DOLLAR CHANGE ACTUAL CONSTANT CURRENCY (1) IMPACT OF ACQUISITIONS ORGANIC GROWTH (2) Storage Rental $ 3,370,645 $ 3,034,023 $ 336,622 11.1 % 11.2 % 0.7 % 10.5 % Service 2,109,644 2,069,551 40,093 1.9 % 2.2 % 0.6 % 1.6 % Total Revenues $ 5,480,289 $ 5,103,574 $ 376,715 7.4 % 7.6 % 0.7 % 6.9 % (1) Constant currency growth rate, which is a non-GAAP measure, is calculated by translating the 2022 results at the 2023 average exchange rates.
IRON MOUNTAIN 2024 FORM 10-K 39 Table of Contents Part II REVENUES Total revenues consist of the following (in thousands): YEAR ENDED DECEMBER 31, PERCENTAGE CHANGE 2024 2023 DOLLAR CHANGE ACTUAL CONSTANT CURRENCY (1) IMPACT OF ACQUISITIONS ORGANIC GROWTH (2) Storage Rental $ 3,682,259 $ 3,370,645 $ 311,614 9.2 % 9.7 % 0.8 % 8.9 % Service 2,467,650 2,109,644 358,006 17.0 % 17.3 % 8.3 % 9.0 % Total Revenues $ 6,149,909 $ 5,480,289 $ 669,620 12.2 % 12.6 % 3.6 % 9.0 % (1) Constant currency growth rate, which is a non-GAAP measure, is calculated by translating the 2023 results at the 2024 average exchange rates.
The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate were: YEAR ENDED DECEMBER 31, 2023 2022 The benefits derived from the dividends paid deduction of $39.3 million and the differences in the tax rates to which our foreign earnings are subject of $6.9 million.
The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate were: YEAR ENDED DECEMBER 31, 2024 2023 The lack of tax benefits recognized for the ordinary losses and disallowed interest expenses of certain entities of $37.0 million and differences in the tax rates to which our foreign earnings are subject of $13.3 million, partially offset by the benefits derived from the dividends paid deduction of $33.9 million.
CASH FLOWS The following is a summary of our cash balances and cash flows (in thousands) as of and for the years ended December 31, 2023 2022 Cash Flows from Operating Activities $ 1,113,567 $ 927,695 Cash Flows from Investing Activities (1,444,356) (1,660,423) Cash Flows from Financing Activities 425,666 639,207 Cash and Cash Equivalents, End of Year 222,789 141,797 A.
CASH FLOWS The following is a summary of our cash balances and cash flows (in thousands) as of and for the years ended December 31, 2024 2023 Cash Flows from Operating Activities $ 1,196,708 $ 1,113,567 Cash Flows from Investing Activities (2,136,761) (1,444,356) Cash Flows from Financing Activities 876,745 425,666 Cash and Cash Equivalents, End of Year 155,716 222,789 A.
As of December 31, 2023 and 2022, we had approximately $23.6 million and $27.8 million, respectively, of reserves related to uncertain tax positions. The reversal of these reserves will be recorded as a reduction of our income tax provision if sustained.
We regularly assess the likelihood of additional assessments by tax authorities and provide for these matters as appropriate. As of December 31, 2024 and 2023, we had approximately $25.9 million and $23.6 million, respectively, of reserves related to uncertain tax positions. The reversal of these reserves will be recorded as a reduction of our income tax provision if sustained.
KEY ASSUMPTIONS Key factors that could reasonably be expected to have a negative impact on the estimated fair value of these reporting units and potentially result in impairment charges include, but are not limited to: (i) a deterioration in general economic conditions, (ii) significant adverse changes in regulatory factors or in the business climate and (iii) adverse actions or assessment by regulators, all of which could result in adverse changes to the key assumptions used in valuing the reporting units.
The assumptions used also reflect market pricing for IT hardware and component assets that is consistent with pricing we observed in the current year. 36 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part II KEY ASSUMPTIONS Key factors that could reasonably be expected to have a negative impact on the estimated fair value of these reporting units and potentially result in impairment charges include, but are not limited to: (i) a deterioration in general economic conditions, (ii) significant adverse changes in regulatory factors or in the business climate, (iii) adverse actions or assessment by regulators and (iv) changes in market trends due to the evolution of technology, all of which could result in adverse changes to the key assumptions used in valuing the reporting units.
In addition, there were gains and losses recorded in Other expense (income), net and Gain (loss) on disposal/write-down of property, plant and equipment, net during the period for which there were insignificant tax impacts. As a REIT, we are entitled to a deduction for dividends paid, resulting in a substantial reduction of federal income tax expense.
In addition, there were gains and losses recorded in Other expense (income), net for which there was no tax impact. As a REIT, we are entitled to a deduction for dividends paid, resulting in a substantial reduction of federal income tax expense.
IRON MOUNTAIN 2023 FORM 10-K 41 Table of Contents Part II SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Selling, general and administrative expenses consists of the following expenses (in thousands): YEAR ENDED DECEMBER 31, PERCENTAGE CHANGE % OF CONSOLIDATED REVENUES PERCENTAGE CHANGE (FAVORABLE)/ UNFAVORABLE DOLLAR CHANGE 2023 2022 ACTUAL CONSTANT CURRENCY 2023 2022 General, Administrative and Other $ 873,195 $ 839,844 $ 33,351 4.0 % 4.2 % 15.9 % 16.5 % (0.6) % Sales, Marketing and Account Management 363,092 300,733 62,359 20.7 % 20.6 % 6.6 % 5.9 % 0.7 % Total Selling, general and administrative expenses $ 1,236,287,000 $ 1,140,577,000 $ 95,710 8.4 % 8.5 % 22.6 % 22.4 % 0.2 % Primary factors influencing the change in reported Selling, general and administrative expenses for the year ended December 31, 2023 compared to the year ended December 31, 2022 include the following: • an increase in general, administrative and other expenses, primarily driven by recent acquisitions; • an increase in sales, marketing and account management expenses, driven by higher compensation expense, primarily reflecting increased headcount; and • a decrease of $1.7 million due to foreign currency exchange rate fluctuations.
IRON MOUNTAIN 2024 FORM 10-K 41 Table of Contents Part II SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Selling, general and administrative expenses consists of the following expenses (in thousands): YEAR ENDED DECEMBER 31, PERCENTAGE CHANGE % OF CONSOLIDATED REVENUES PERCENTAGE CHANGE (FAVORABLE)/ UNFAVORABLE DOLLAR CHANGE 2024 2023 ACTUAL CONSTANT CURRENCY 2024 2023 General, Administrative and Other $ 977,345 $ 873,195 $ 104,150 11.9 % 12.3 % 15.9 % 15.9 % — % Sales, Marketing and Account Management 362,194 363,092 (898) (0.2) % — % 5.9 % 6.6 % (0.7) % Total Selling, general and administrative expenses $ 1,339,539 $ 1,236,287 $ 103,252 8.4 % 8.7 % 21.8 % 22.6 % (0.8) % Primary factors influencing the change in reported Selling, general and administrative expenses for the year ended December 31, 2024 compared to the year ended December 31, 2023 include the following: • an increase in general, administrative and other expenses, primarily driven by higher compensation expense, recent acquisitions, professional fees and IT costs; and • a decrease in sales, marketing and account management expenses, driven by lower compensation expense, primarily offset by increased professional fees and marketing costs.
We have assets for foreign net operating losses of $133.5 million, with various expiration dates (and in some cases no expiration date), subject to a valuation allowance of approximately 73.8%. 56 IRON MOUNTAIN 2023 FORM 10-K Table of Contents Part II
We have assets for foreign net operating losses of $146.6 million and foreign disallowed interest expense carryforwards of $17.7 million, with various expiration dates (and in some cases no expiration date), subject to valuation allowances of approximately 72.0% and 46.5%, respectively. IRON MOUNTAIN 2024 FORM 10-K 55 Table of Contents Part II
The Credit Agreement requires that we satisfy a net total lease adjusted leverage ratio and a fixed charge coverage ratio on a quarterly basis, and our bond indentures require that, among other things, we satisfy a leverage ratio (not lease adjusted) or a fixed charge coverage ratio (not lease adjusted), as a condition to taking actions such as paying dividends and incurring indebtedness.
The Credit Agreement requires that we satisfy a net total lease adjusted leverage ratio and a fixed charge coverage ratio on a quarterly basis, and our bond indentures require that, among other things, we satisfy a leverage ratio (not lease adjusted) or a fixed charge coverage ratio (not lease adjusted), as a condition to taking actions such as paying dividends and incurring indebtedness. 52 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part II The Credit Agreement uses EBITDAR-based calculations and the bond indentures use EBITDA based calculations as the primary measures of financial performance for purposes of calculating leverage and fixed charge coverage ratios.
NATURE OF CAPITAL SPEND (IN THOUSANDS) 2023 2022 Growth Investment Capital Expenditures: Data Center $ 964,198 $ 592,875 Real Estate 201,036 181,285 Innovation and Other 81,135 45,371 Total Growth Investment Capital Expenditures 1,246,369 819,531 Recurring Capital Expenditures: Data Center 17,198 17,008 Real Estate 58,465 60,354 Non-Real Estate 64,743 65,134 Total Recurring Capital Expenditures 140,406 142,496 Total Capital Spend (on accrual basis) 1,386,775 962,027 Net increase (decrease) in prepaid capital expenditures 14,174 (2,270) Net (increase) decrease in accrued capital expenditures (61,726) (84,379) Total Capital Spend (on cash basis) $ 1,339,223 $ 875,378 Excluding capital expenditures associated with potential future acquisitions, we expect total capital expenditures of approximately $1,500.0 million for the year ending December 31, 2024.
NATURE OF CAPITAL SPEND (IN THOUSANDS) 2024 2023 Growth Investment Capital Expenditures: Data Center $ 1,422,118 $ 964,198 Real Estate 204,248 201,036 Innovation and Other 131,195 81,135 Total Growth Investment Capital Expenditures 1,757,561 1,246,369 Recurring Capital Expenditures: Data Center 19,728 17,198 Real Estate 56,781 58,465 Non-Real Estate 66,558 64,743 Total Recurring Capital Expenditures 143,067 140,406 Total Capital Spend (on accrual basis) 1,900,628 1,386,775 Net (decrease) increase in prepaid capital expenditures (1,627) 14,174 Net (increase) decrease in accrued capital expenditures (107,437) (61,726) Total Capital Spend (on cash basis) $ 1,791,564 $ 1,339,223 Excluding capital expenditures associated with potential future acquisitions, we expect total capital expenditures of approximately $1,950.0 million for the year ending December 31, 2025.
Our estimate of fair value reflects the expected growth in each of our data center markets along with the corresponding capital investments required to meet demand. ALM Our ALM business provides hyperscale and corporate IT infrastructure managers with services and solutions that enable the decommissioning, data erasure, processing and disposition or sale of IT hardware and component assets.
ALM Our ALM business provides hyperscale and corporate IT infrastructure managers with services and solutions that enable the decommissioning, data erasure, processing and disposition, and recycling or sale of IT hardware and component assets.
Although we believe our tax estimates are appropriate, the final determination of tax audits and any related litigation could result in changes in our estimates. 44 IRON MOUNTAIN 2023 FORM 10-K Table of Contents Part II NET INCOME (LOSS) AND ADJUSTED EBITDA The following table reflects the effect of the foregoing factors on our net income (loss) and Adjusted EBITDA (in thousands): YEAR ENDED DECEMBER 31, DOLLAR CHANGE PERCENTAGE CHANGE 2023 2022 Net Income (Loss) $ 187,263 $ 562,149 $ (374,886) (66.7) % Net Income (Loss) as a percentage of Revenue 3.4 % 11.0 % Adjusted EBITDA $ 1,961,677 $ 1,827,057 $ 134,620 7.4 % Adjusted EBITDA Margin 35.8 % 35.8 % Adjusted EBITDA Margin for the year ended December 31, 2023 was consistent with the prior year, driven by improved service revenue trends, revenue management and ongoing cost containment measures, offset by lower Adjusted EBITDA Margin in our ALM business. ↑ INCREASED BY $134.6 MILLION OR 7.4% Adjusted EBITDA IRON MOUNTAIN 2023 FORM 10-K 45 Table of Contents Part II SEGMENT ANALYSIS See the discussion of Business Segments under Item I and Note 11 to Notes to Consolidated Financial Statements, both included in this Annual Report, for a description of our reportable segments.
IRON MOUNTAIN 2024 FORM 10-K 43 Table of Contents Part II NET INCOME (LOSS) AND ADJUSTED EBITDA The following table reflects the effect of the foregoing factors on our net income (loss) and Adjusted EBITDA (in thousands): YEAR ENDED DECEMBER 31, DOLLAR CHANGE PERCENTAGE CHANGE 2024 2023 Net Income (Loss) $ 183,666 $ 187,263 $ (3,597) (1.9) % Net Income (Loss) as a percentage of Revenue 3.0 % 3.4 % Adjusted EBITDA $ 2,236,380 $ 1,961,677 $ 274,703 14.0 % Adjusted EBITDA Margin 36.4 % 35.8 % Adjusted EBITDA Margin for the year ended December 31, 2024 increased 60 basis points from the prior year driven by favorable overhead management, offset by changes in our revenue mix. ↑ INCREASED BY $274.7 MILLION OR 14.0% Adjusted EBITDA 44 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part II SEGMENT ANALYSIS See the discussion of Business Segments under Item I and Note 11 to Notes to Consolidated Financial Statements, both included in this Annual Report, for a description of our reportable segments.
SERVICE REVENUE • organic service revenue growth driven by increased service activity levels in our Global RIM Business, partially offset by service revenue declines in our ALM business as a result of component price declines, partially offset by increased volume; and • a decrease of $6.1 million due to foreign currency exchange rate fluctuations. 40 IRON MOUNTAIN 2023 FORM 10-K Table of Contents Part II OPERATING EXPENSES COST OF SALES Cost of sales (excluding depreciation and amortization) consists of the following expenses (in thousands): YEAR ENDED DECEMBER 31, PERCENTAGE CHANGE % OF CONSOLIDATED REVENUES PERCENTAGE CHANGE (FAVORABLE)/ UNFAVORABLE 2023 2022 DOLLAR CHANGE ACTUAL CONSTANT CURRENCY 2023 2022 Labor $ 891,351 $ 807,220 $ 84,131 10.4 % 10.6 % 16.3 % 15.8 % 0.5 % Facilities 1,028,765 884,930 143,835 16.3 % 16.3 % 18.8 % 17.3 % 1.5 % Transportation 158,737 157,298 1,439 0.9 % 1.5 % 2.9 % 3.1 % (0.2) % Product Cost of Sales and Other 278,947 339,672 (60,725) (17.9) % (17.5) % 5.1 % 6.7 % (1.6) % Total Cost of sales $ 2,357,800 $ 2,189,120 $ 168,680 7.7 % 7.9 % 43.0 % 42.9 % 0.1 % Primary factors influencing the change in reported Cost of sales for the year ended December 31, 2023 compared to the year ended December 31, 2022 include the following: • an increase in labor costs driven by an increase in service activity, primarily within our Global RIM Business; • an increase in facilities expenses driven by increases in rent expense, reflecting the impact from our sale-leaseback activity during the years ended December 31, 2022 and 2023, as well as increases in utilities costs; • a decrease in product cost of sales in our ALM business as a result of component price declines, partially offset by increased volume; and • a decrease of $4.0 million due to foreign currency exchange rate fluctuations.
SERVICE REVENUE • organic service revenue growth driven by increased service activity levels in our Global RIM Business and organic service revenue growth in our ALM business as a result of increased volume and improved component pricing; and • an increase of $137.0 million due to our acquisition of Regency Technologies. 40 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part II OPERATING EXPENSES COST OF SALES Cost of sales (excluding depreciation and amortization) consists of the following expenses (in thousands): YEAR ENDED DECEMBER 31, PERCENTAGE CHANGE % OF CONSOLIDATED REVENUES PERCENTAGE CHANGE (FAVORABLE)/ UNFAVORABLE 2024 2023 DOLLAR CHANGE ACTUAL CONSTANT CURRENCY 2024 2023 Labor $ 1,052,568 $ 891,351 $ 161,217 18.1 % 18.6 % 17.1 % 16.3 % 0.8 % Facilities 1,114,316 1,028,765 85,551 8.3 % 8.5 % 18.1 % 18.8 % (0.7) % Transportation 179,166 158,737 20,429 12.9 % 13.2 % 2.9 % 2.9 % — % Product Cost of Sales and Other 350,499 278,947 71,552 25.7 % 26.1 % 5.7 % 5.1 % 0.6 % Total Cost of sales $ 2,696,549 $ 2,357,800 $ 338,749 14.4 % 14.7 % 43.8 % 43.0 % 0.8 % Primary factors influencing the change in reported Cost of sales for the year ended December 31, 2024 compared to the year ended December 31, 2023 include the following: • an increase in labor costs driven by an increase in service activity, primarily within our Global RIM Business, and the impact of recent acquisitions; • an increase in facilities expenses driven by increases in rent expense, utilities and real estate taxes; • an increase in transportation expenses in our ALM business primarily driven by our acquisition of Regency Technologies; and • an increase in product cost of sales in our ALM business as a result of higher product volumes and our acquisition of Regency Technologies.
B. CASH FLOWS FROM INVESTING ACTIVITIES Our significant investing activities during the year ended December 31, 2023 included cash paid for capital expenditures of $1,339.2 million. Additional details of our capital spending are included in the "Capital Expenditures" section below. C.
CASH FLOWS FROM INVESTING ACTIVITIES Our significant investing activities during the year ended December 31, 2024 included: • Cash paid for capital expenditures of $1,791.6 million.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

9 edited+1 added−1 removed11 unchanged
Biggest changeThis creates a tax efficient natural currency hedge. We have entered into cross-currency swap agreements to hedge the variability of exchange rate impacts between the United States dollar and the Euro. These cross-currency swap agreements are designated as a hedge of net investment against certain of our Euro denominated subsidiaries and require an exchange of the notional amounts at maturity.
Biggest changeThese cross-currency swap agreements are designated as a hedge of net investment against certain of our Euro and Canadian dollar denominated subsidiaries and require an exchange of the notional amounts at maturity.
CURRENCY RISK Our international investments may be subject to risks and uncertainties related to fluctuations in currency valuation. Our reporting currency is the United States dollar. However, our international revenues and expenses are generated in the currencies of the countries in which we operate, primarily the British pound sterling, Euro, Canadian dollar, Brazilian real and the Australian dollar.
CURRENCY RISK Our international investments may be subject to risks and uncertainties related to fluctuations in currency valuation. Our reporting currency is the United States dollar. However, our international revenues and expenses are generated in the currencies of the countries in which we operate, primarily the British pound sterling, Euro, Canadian dollar and Australian dollar.
See Note 6 to Notes to Consolidated Financial Statements included in this Annual Report for a discussion on our interest rate swaps and Note 7 to Notes to Consolidated Financial Statements included in this Annual Report for a discussion of our long-term indebtedness, including the fair values of such indebtedness as of December 31, 2023.
See Note 6 to Notes to Consolidated Financial Statements included in this Annual Report for a discussion on our interest rate swaps and Note 7 to Notes to Consolidated Financial Statements included in this Annual Report for a discussion of our long-term indebtedness, including the fair values of such indebtedness as of December 31, 2024.
A 10% depreciation in year-end 2023 functional currencies, relative to the United States dollar, would result in a reduction in our equity of approximately $422.0 million. ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. The information required by this item is included in Item 15(a) of this Annual Report.
A 10% depreciation in year-end 2024 functional currencies, relative to the United States dollar, would result in a reduction in our equity of $335.6 million. ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. The information required by this item is included in Item 15(a) of this Annual Report.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. CREDIT RISK Financial instruments that potentially subject us to credit risk consist principally of cash and cash equivalents (including money market funds and time deposits) and accounts receivable. The only significant concentrations of liquid investments as of December 31, 2023 related to cash and cash equivalents held in money market funds.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. CREDIT RISK Financial instruments that potentially subject us to credit risk consist principally of cash and cash equivalents (including money market funds and time deposits) and accounts receivable. We had no significant concentrations of liquid investments as of December 31, 2024.
As of December 31, 2023, approximately 79.6% of our total debt outstanding was fixed. If the weighted average variable interest rate on our variable rate debt had increased by 1%, our net income for the year ended December 31, 2023 would have been reduced by approximately $20.7 million.
If the weighted average variable interest rate on our variable rate debt had increased by 1%, our net income for the year ended December 31, 2024 would have been reduced by approximately $23.2 million.
As of December 31, 2023, our cash and cash equivalents balance was $222.8 million.
As of December 31, 2024, our cash and cash equivalents balance was $155.7 million.
IRON MOUNTAIN 2023 FORM 10-K 57 Table of Contents Part II The impact of devaluation or depreciating currency on an entity depends on the residual effect on the local economy and the ability of an entity to raise prices and/or reduce expenses.
See Note 6 to Notes to Consolidated Financial Statements included in this Annual Report for a discussion on our cross-currency swap agreements. 56 IRON MOUNTAIN 2024 FORM 10-K Table of Contents Part II The impact of devaluation or depreciating currency on an entity depends on the residual effect on the local economy and the ability of an entity to raise prices and/or reduce expenses.
Occasionally, we may use interest rate swaps as a tool to maintain our targeted level of fixed rate debt. As of December 31, 2023, we had $2,459.6 million of variable rate debt outstanding with a weighted average variable interest rate of approximately 7.8%, and $9,575.0 million of fixed rate debt outstanding.
Occasionally, we may use interest rate swaps as a tool to maintain our targeted level of fixed rate debt. As of December 31, 2024, approximately 14.4%, or $1,989.4 million, of our total long-term debt outstanding was subject to variable interest rates.
Removed
See Note 6 to Notes to Consolidated Financial Statements included in this Annual Report for a discussion on our cross-currency swap agreements.
Added
This creates a tax efficient natural currency hedge. We have entered into cross-currency swap agreements to hedge the variability of exchange rate impacts between the United States dollar and certain of our functional foreign currencies, including the Euro and the Canadian dollar.

Other IRM 10-K year-over-year comparisons