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Stockholders' Equity | 6 Months Ended
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Jun. 30, 2020
Equity [Abstract] |
Stockholders' Equity | Stockholders' Equity Stockholders' Equity Rollforward The following tables provide a rollforward of stockholders' equity for the three and six months ended June 30, 2020 and 2019 (in thousands):
|  |  |  |  |  |  |  |  |  |  |  |  | AOCI (Loss) |  | Retained Earnings |  | Equinix Stockholders' Equity |  | Non-controlling Interests |  | Total Stockholders' Equity
| Common Stock |  | Treasury Stock |  | Additional Paid-in Capital |  | Accumulated Dividends |  |  |  |  |
| Shares |  | Amount |  | Shares |  | Amount |  |  |  |  |  |  |
Balance as of December 31, 2019 | 85,700,953 |  |  | $ | 86 |  |  | (392,567 | ) |  | $ | (144,256 | ) |  | $ | 12,696,433 |  |  | $ | (4,168,469 | ) |  | $ | (934,613 | ) |  | $ | 1,391,425 |  |  | $ | 8,840,606 |  |  | $ | (224 | ) |  | $ | 8,840,382 |
Adjustment from adoption of new accounting standard update | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (900 | ) |  | (900 | ) |  | — |  |  | (900 | )
Net income | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 118,792 |  |  | 118,792 |  |  | 165 |  |  | 118,957 |
Other comprehensive loss | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (272,056 | ) |  | — |  |  | (272,056 | ) |  | (11 | ) |  | (272,067 | )
Issuance of common stock and release of treasury stock for employee equity awards | 405,550 |  |  | — |  |  | 50,594 |  |  | 16,958 |  |  | 13,432 |  |  | — |  |  | — |  |  | — |  |  | 30,390 |  |  | — |  |  | 30,390 |
Issuance of common stock under ATM Program | 162,530 |  |  | — |  |  | — |  |  | — |  |  | 101,791 |  |  | — |  |  | — |  |  | — |  |  | 101,791 |  |  | — |  |  | 101,791 |
Dividend distribution on common stock, $2.66 per share | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (227,387 | ) |  | — |  |  | — |  |  | (227,387 | ) |  | — |  |  | (227,387 | )
Settlement of accrued dividends on vested equity awards | — |  |  | — |  |  | — |  |  | — |  |  | 109 |  |  | (403 | ) |  | — |  |  | — |  |  | (294 | ) |  | — |  |  | (294 | )
Accrued dividends on unvested equity awards | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (3,268 | ) |  | — |  |  | — |  |  | (3,268 | ) |  | — |  |  | (3,268 | )
Stock-based compensation, net of estimated forfeitures | — |  |  | — |  |  | — |  |  | — |  |  | 81,690 |  |  | — |  |  | — |  |  | — |  |  | 81,690 |  |  | — |  |  | 81,690 |
Balance as of March 31, 2020 | 86,269,033 |  |  | 86 |  |  | (341,973 | ) |  | (127,298 | ) |  | 12,893,455 |  |  | (4,399,527 | ) |  | (1,206,669 | ) |  | 1,509,317 |  |  | 8,669,364 |  |  | (70 | ) |  | 8,669,294 |
Net income | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 133,304 |  |  | 133,304 |  |  | 46 |  |  | 133,350 |
Other comprehensive income | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 66,378 |  |  | — |  |  | 66,378 |  |  | 2 |  |  | 66,380 |
Issuance of common stock and release of treasury stock for employee equity awards | 34,146 |  |  | — |  |  | 688 |  |  | 256 |  |  | (256 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Issuance of common stock for equity offering | 2,587,500 |  |  | 3 |  |  |  |  |  |  | 1,683,103 |  |  |  |  |  |  |  |  | 1,683,106 |  |  |  |  | 1,683,106 |
Dividend distribution on common stock, $2.66 per share | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (235,334 | ) |  | — |  |  | — |  |  | (235,334 | ) |  | — |  |  | (235,334 | )
Settlement of accrued dividends on vested equity awards | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (44 | ) |  | — |  |  | — |  |  | (44 | ) |  | — |  |  | (44 | )
Accrued dividends on unvested equity awards | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (4,136 | ) |  | — |  |  | — |  |  | (4,136 | ) |  | — |  |  | (4,136 | )
Stock-based compensation, net of estimated forfeitures | — |  |  | — |  |  | — |  |  | — |  |  | 75,642 |  |  | — |  |  | — |  |  | — |  |  | 75,642 |  |  | — |  |  | 75,642 |
Balance as of June 30, 2020 | 88,890,679 |  |  | $ | 89 |  |  | (341,285 | ) |  | $ | (127,042 | ) |  | $ | 14,651,944 |  |  | $ | (4,639,041 | ) |  | $ | (1,140,291 | ) |  | $ | 1,642,621 |  |  | $ | 10,388,280 |  |  | $ | (22 | ) |  | $ | 10,388,258 |
|  |  |  |  |  |  |  |  | Additional Paid-in Capital |  | Accumulated Dividends |  | AOCI (Loss) |  | Retained Earnings |  | Equinix Stockholders' Equity |  | Non-controlling interests |  | Total Stockholders' Equity
| Common Stock |  | Treasury Stock |  |  |  |  |  |  |
| Shares |  | Amount |  | Shares |  | Amount |  |  |  |  |  |  |
Balance as of December 31, 2018 | 81,119,117 |  |  | $ | 81 |  |  | (396,859 | ) |  | $ | (145,161 | ) |  | $ | 10,751,313 |  |  | $ | (3,331,200 | ) |  | $ | (945,702 | ) |  | $ | 889,948 |  |  | $ | 7,219,279 |  |  | $ | — |  |  | $ | 7,219,279 |
Adjustment from adoption of new accounting standard update | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (5,973 | ) |  | (5,973 | ) |  | — |  |  | (5,973 | )
Net income (loss) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 118,078 |  |  | 118,078 |  |  | (331 | ) |  | 117,747 |
Other comprehensive income | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,337 |  |  | — |  |  | 3,337 |  |  | 7 |  |  | 3,344 |
Issuance of common stock and release of treasury stock for employee equity awards | 360,464 |  |  | — |  |  | 1,706 |  |  | 360 |  |  | 27,233 |  |  | — |  |  | — |  |  | — |  |  | 27,593 |  |  | — |  |  | 27,593 |
Issuance of common stock for equity offering | 2,985,575 |  |  | 3 |  |  | — |  |  | — |  |  | 1,213,431 |  |  | — |  |  | — |  |  | — |  |  | 1,213,434 |  |  | — |  |  | 1,213,434 |
Dividend distribution on common stock, $2.46 per share | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (198,933 | ) |  | — |  |  | — |  |  | (198,933 | ) |  | — |  |  | (198,933 | )
Settlement of accrued dividends on vested equity awards | — |  |  | — |  |  | — |  |  | — |  |  | 284 |  |  | (387 | ) |  | — |  |  | — |  |  | (103 | ) |  | — |  |  | (103 | )
Accrued dividends on unvested equity awards | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (2,395 | ) |  | — |  |  | — |  |  | (2,395 | ) |  | — |  |  | (2,395 | )
Stock-based compensation, net of estimated forfeitures | — |  |  | — |  |  | — |  |  | — |  |  | 50,795 |  |  | — |  |  | — |  |  | — |  |  | 50,795 |  |  | — |  |  | 50,795 |
Balance as of March 31, 2019 | 84,465,156 |  |  | $ | 84 |  |  | (395,153 | ) |  | $ | (144,801 | ) |  | $ | 12,043,056 |  |  | $ | (3,532,915 | ) |  | $ | (942,365 | ) |  | $ | 1,002,053 |  |  | $ | 8,425,112 |  |  | $ | (324 | ) |  | $ | 8,424,788 |
Net income | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 143,527 |  |  | 143,527 |  |  | 325 |  |  | 143,852 |
Other comprehensive loss | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (16,078 | ) |  | — |  |  | (16,078 | ) |  | (14 | ) |  | (16,092 | )
Issuance of common stock and release of treasury stock for employee equity awards | 26,435 |  |  | — |  |  | 359 |  |  | 76 |  |  | (76 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Issuance of common stock under ATM Program | 722,361 |  |  | 1 |  |  | — |  |  | — |  |  | 348,120 |  |  | — |  |  | — |  |  | — |  |  | 348,121 |  |  | — |  |  | 348,121 |
Dividend distribution on common stock, $2.46 per share | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (207,949 | ) |  | — |  |  | — |  |  | (207,949 | ) |  | — |  |  | (207,949 | )
Settlement of accrued dividends on vested equity awards | — |  |  | — |  |  | — |  |  | — |  |  | 12 |  |  | (33 | ) |  | — |  |  | — |  |  | (21 | ) |  | — |  |  | (21 | )
Accrued dividends on unvested equity awards | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (2,972 | ) |  | — |  |  | — |  |  | (2,972 | ) |  | — |  |  | (2,972 | )
Stock-based compensation, net of estimated forfeitures | — |  |  | — |  |  | — |  |  | — |  |  | 59,502 |  |  | — |  |  | — |  |  | — |  |  | 59,502 |  |  | — |  |  | 59,502 |
Balance as of June 30, 2019 | 85,213,952 |  |  | 85 |  |  | (394,794 | ) |  | (144,725 | ) |  | 12,450,614 |  |  | (3,743,869 | ) |  | (958,443 | ) |  | 1,145,580 |  |  | 8,749,242 |  |  | (13 | ) |  | 8,749,229 |
Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss, net of tax, by components are as follows (in thousands):
| Balance as of December 31, 2019 |  | Net Change |  | Balance as of June 30, 2020
Foreign currency translation adjustment ("CTA") loss | $ | (1,056,918 | ) |  | $ | (232,497 | ) |  | $ | (1,289,415 | )
Unrealized gain (loss) on cash flow hedges (1) | 15,638 |  |  | (21,124 | ) |  | (5,486 | )
Net investment hedge CTA gain (1) | 107,619 |  |  | 47,888 |  |  | 155,507 |
Net actuarial gain (loss) on defined benefit plans (2) | (952 | ) |  | 55 |  |  | (897 | )
Accumulated other comprehensive loss attributable to Equinix | $ | (934,613 | ) |  | $ | (205,678 | ) |  | $ | (1,140,291 | )
(1) | Refer to Note 7 for a discussion of the amounts reclassified from accumulated other comprehensive loss to net income.
(2) | The Company has a defined benefit pension plan covering all employees in one country where such plan is mandated by law. The Company does not have any defined benefit plans in any other countries. The unamortized gain (loss) on defined benefit plans includes gains or losses resulting from a change in the value of either the projected benefit obligation or the plan assets resulting from a change in an actuarial assumption, net of amortization.
Changes in foreign currencies can have a significant impact to the Company's consolidated balance sheets (as evidenced above in the Company's foreign currency translation loss), as well as its consolidated results of operations, as amounts in foreign currencies are generally translated into more U.S. Dollars when the U.S. Dollar weakens or fewer U.S. Dollars when the U.S. Dollar strengthens. As of June 30, 2020, the U.S. Dollar was generally stronger relative to certain of the currencies of the foreign countries in which the Company operates as compared to December 31, 2019. This overall strengthening of the U.S. Dollar had an overall unfavorable impact on the Company's condensed consolidated financial position because the foreign denominations translated into fewer U.S. Dollars as evidenced by an increase in foreign currency translation loss for the six months ended June 30, 2020 as reflected in the above table. The volatility of the U.S. Dollar as compared to the other currencies in which the Company operates could have a significant impact on its condensed consolidated financial position and results of operations including the amount of revenue that the Company reports in future periods. Common Stock In March 2019, the Company issued and sold 2,985,575 shares of common stock in a public offering pursuant to a registration statement and a related prospectus and prospectus supplement. The Company received net proceeds of approximately $1,213.4 million, net of underwriting discounts, commissions and offering expenses. In May 2020, the Company issued and sold 2,587,500 shares of common stock in a public offering pursuant to a registration statement and a related prospectus and prospectus supplement. The Company received net proceeds of approximately $1,683.1 million, net of underwriting discounts, commissions and offering expenses. In December 2018, the Company launched an ATM program, under which it may offer and sell from time to time up to an aggregate of $750.0 million of its common stock in "at the market" transactions (the "ATM Program"). For the six months ended June 30, 2020, the Company sold 162,530 shares under the ATM Program, for approximately $101.8 million, net of payment of commissions to sales agents and other offering expenses. For the six months ended June 30, 2019, the Company sold 722,361 shares under the ATM program, for approximately $348.2 million, net of payment of commissions to sales agents and other offering expenses. Stock-Based Compensation For the six months ended June 30, 2020, the Compensation Committee and/or the Stock Award Committee of the Company's Board of Directors, as the case may be, approved the issuance of an aggregate of 680,543 shares of restricted stock units to certain employees, including executive officers. These equity awards are subject to vesting provisions and have a weighted-average grant date fair value of $583.99 per share and a weighted-average requisite service period of 3.33 years. The valuation of restricted stock units with only a service condition or a service and performance condition require no significant assumptions as the fair value for these types of equity awards is based solely on the fair value of the Company's stock price on the date of grant. The Company used revenues and adjusted funds from operations ("AFFO") per share as the performance measurements in the restricted stock units with both service and performance conditions that were granted in the six months ended June 30, 2020. The Company uses a Monte Carlo simulation option-pricing model to determine the fair value of restricted stock units with a service and market condition. The Company used total shareholder return ("TSR") as the performance measurement in the restricted stock units with a service and market condition that were granted in the six months ended June 30, 2020. There were no significant changes in the assumptions used to determine the fair value of restricted stock units with a service and market condition that were granted in 2020 compared to the prior year. The following table presents, by operating expense category, the Company's stock-based compensation expense recognized in the Company's condensed consolidated statements of operations (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2020 |  | 2019 |  | 2020 |  | 2019
Cost of revenues | $ | 7,655 |  |  | $ | 6,500 |  |  | $ | 16,998 |  |  | $ | 11,512 |
Sales and marketing | 18,215 |  |  | 15,157 |  |  | 36,760 |  |  | 28,458 |
General and administrative | 49,974 |  |  | 39,862 |  |  | 102,652 |  |  | 70,572 |
Total | $ | 75,844 |  |  | $ | 61,519 |  |  | $ | 156,410 |  |  | $ | 110,542 |

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)(1)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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