Stockholders' Equity

3 Months Ended

Mar. 31, 2021

Stockholders' Equity Rollforward

The following tables provide a rollforward of our stockholders' equity for the three months ended March 31, 2021 and 2020 (in thousands, except share and per share data):


											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, 2020	89,462,304	$	89	(328,052)	$	(122,118)	$	15,028,357	$	(5,119,274)	$	(913,368)	$	1,760,302	$	10,633,988	$	130	$	10,634,118

Net income	—	—		—	—		—		—		—		156,362		156,362		(288)		156,074
Other comprehensive loss	—	—		—	—		—		—		(95,480)		—		(95,480)		(1)		(95,481)
Issuance of common stock and release of treasury stock for employee equity awards	428,618	1		11,640	4,332		35,701		—		—		—		40,034		—		40,034

Dividend distribution on common stock, $2.87 per share	—	—		—	—		—		(256,321)		—		—		(256,321)		—		(256,321)
Settlement of accrued dividends on vested equity awards	—	—		—	—		—		(437)		—		—		(437)		—		(437)
Accrued dividends on unvested equity awards	—	—		—	—		—		(3,661)		—		—		(3,661)		—		(3,661)
Stock-based compensation, net of estimated forfeitures	—	—		—			102,349		—		—		—		102,349		—		102,349

Balance as of March 31, 2021	89,890,922	$	90	(316,412)	$	(117,786)	$	15,166,407	$	(5,379,693)	$	(1,008,848)	$	1,916,664	$	10,576,834	$	(159)	$	10,576,675


							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, 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 income	—	—		—	—		—		—		(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

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, 2020		Net Change		Balance as of March 31, 2021
Foreign currency translation adjustment ("CTA") gain (loss)	$	(508,415)	$	(295,145)	$	(803,560)
Unrealized gain (loss) on cash flow hedges (1)	(67,152)		29,478		(37,674)
Net investment hedge CTA gain (loss) (1)	(336,934)		170,175		(166,759)
Net actuarial gain (loss) on defined benefit plans (2)	(867)		12		(855)
Accumulated other comprehensive loss attributable to Equinix	$	(913,368)	$	(95,480)	$	(1,008,848)

(1)Refer to Note 6 for a discussion of the amounts reclassified from accumulated other comprehensive loss to net income.

(2)We have two defined benefit pension plans covering all employees in two countries where such plan is mandated by law.

Changes in foreign currencies can have a significant impact to our condensed consolidated balance sheets (as evidenced above in our foreign currency translation loss), as well as our 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 March 31, 2021, the U.S. Dollar was generally weaker relative to certain of the currencies of the foreign countries in which we operate as compared to December 31, 2020. Because of this, the U.S. Dollar had an overall favorable impact on our condensed consolidated financial position because the foreign denominations translated into more U.S. Dollars as evidenced by a decrease in foreign currency translation loss for the three months ended March 31, 2021 as reflected in the condensed consolidated statements of comprehensive income (loss). The volatility of the U.S. Dollar as compared to the other currencies in which we operate could have a significant impact on our condensed consolidated financial position and results of operations including the amount of revenue that we report in future periods.

Common Stock

In May 2020, we 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. We received net proceeds of approximately $1.7 billion, net of underwriting discounts, commissions and offering expenses.

In October 2020, we established a new ATM program, under which we may, from time to time, offer and sell up to an aggregate of $1.5 billion of our common stock to or through sales agents in "at the market" transactions (the "2020 ATM Program"). For the three months ended March 31, 2021, we did not sell any shares under the 2020 ATM Program. For the three months ended March 31, 2020, we sold 162,530 shares under the prior ATM program for approximately $101.8 million, net of payment of commissions to sales agents and other offering expenses. As of March 31, 2021, no shares remained available for sale under the prior ATM program.

Stock-Based Compensation

For the three months ended March 31, 2021, the Compensation Committee and/or the Stock Award Committee of our Board of Directors, as the case may be, approved the issuance of an aggregate of 646,388 shares of restricted stock units ("RSUs") to certain employees, including executive officers. These equity awards are subject to vesting provisions and have a weighted-average grant date fair value of $650.40 per share and a weighted-average requisite service period of 3.52 years. The valuation of RSUs 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 our stock price on the date of grant. We use revenues and adjusted funds from operations ("AFFO") per share as the performance measurements in the RSUs with both service and performance conditions that were granted in the three months ended March 31, 2021.

We use a Monte Carlo simulation option-pricing model to determine the fair value of RSUs with a service and market condition. We used total shareholder return ("TSR") as the performance measurement in the RSUs with a service and market condition that were granted in the three months ended March 31, 2021. There were no significant changes in the assumptions used to determine the fair value of RSUs with a service and market condition that were granted in 2021 compared to the prior year.

The following table presents, by operating expense category, our stock-based compensation expense recognized in our condensed consolidated statements of operations (in thousands):


	Three Months Ended March 31,
	2021		2020
Cost of revenues	$	8,467	$	9,343
Sales and marketing	17,703		18,545
General and administrative	52,180		52,678
Total	$	78,350	$	80,566