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Stockholders' Equity | 6 Months Ended
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Jun. 30, 2021
Equity [Abstract] |
Stockholders' Equity | Stockholders' Equity Stockholders' Equity Rollforward The following tables provide a rollforward of our stockholders' equity for the three and six months ended June 30, 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 (loss) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 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 |
Net income | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 68,339 |  |  | 68,339 |  |  | 148 |  |  | 68,487 |
Other comprehensive income | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 67,734 |  |  | — |  |  | 67,734 |  |  | 11 |  |  | 67,745 |
Issuance of common stock and release of treasury stock for employee equity awards | 36,674 |  |  | — |  |  | 1,389 |  |  | 516 |  |  | (516) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Issuance of common stock under ATM Program | 137,604 |  |  | — |  |  | — |  |  | — |  |  | 99,599 |  |  | — |  |  | — |  |  | — |  |  | 99,599 |  |  | — |  |  | 99,599 |
Dividend distribution on common stock, $2.87 per share | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (257,199) |  |  | — |  |  | — |  |  | (257,199) |  |  | — |  |  | (257,199) |
Settlement of accrued dividends on vested equity awards | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (55) |  |  | — |  |  | — |  |  | (55) |  |  | — |  |  | (55) |
Accrued dividends on unvested equity awards | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (4,016) |  |  | — |  |  | — |  |  | (4,016) |  |  | — |  |  | (4,016) |
Stock-based compensation, net of estimated forfeitures | — |  |  | — |  |  | — |  |  | — |  |  | 95,236 |  |  | — |  |  | — |  |  | — |  |  | 95,236 |  |  | — |  |  | 95,236 |
Balance as of June 30, 2021 | 90,065,200 |  |  | $ | 90 |  |  | (315,023) |  |  | $ | (117,270) |  |  | $ | 15,360,726 |  |  | $ | (5,640,963) |  |  | $ | (941,114) |  |  | $ | 1,985,003 |  |  | $ | 10,646,472 |  |  | $ | — |  |  | $ | 10,646,472 |
|  |  |  |  |  |  |  |  | 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 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 |
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 June 30, 2021
Foreign currency translation adjustment ("CTA") gain (loss) | $ | (508,415) |  |  | $ | (184,690) |  |  |  |  | $ | (693,105) |
Unrealized gain (loss) on cash flow hedges (1) | (67,152) |  |  | 23,778 |  |  |  |  | (43,374) |
Net investment hedge CTA gain (loss) (1) | (336,934) |  |  | 133,139 |  |  |  |  | (203,795) |
Net actuarial gain (loss) on defined benefit plans (2) | (867) |  |  | 27 |  |  |  |  | (840) |
Accumulated other comprehensive loss attributable to Equinix | $ | (913,368) |  |  | $ | (27,746) |  |  |  |  | $ | (941,114) |
(1)Refer to Note 7 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 June 30, 2021, the U.S. Dollar was generally stronger 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 unfavorable impact on our 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, 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 October 2020, we established an 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 and six months ended June 30, 2021, we sold 137,604 shares under the 2020 ATM Program, for approximately $99.6 million, net of payment of commissions to sales agents and other offering expenses. As of June 30, 2021, we had $1.4 billion available for sale under the 2020 ATM Program. For the three months ended June 30, 2020, no shares were sold under our prior ATM program and for the six months ended June 30, 2020, we sold 162,530 shares under our prior ATM program for approximately $101.8 million, net of payment of commissions to sales agents and other offering expenses. 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. Stock-Based Compensation For the six months ended June 30, 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 689,992 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 $661.05 per share and a weighted-average requisite service period of 3.59 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 six months ended June 30, 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 six months ended June 30, 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 June 30, |  | Six Months Ended June 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Cost of revenues | $ | 10,008 |  |  | $ | 7,655 |  |  | $ | 18,475 |  |  | $ | 16,998 |
Sales and marketing | 20,779 |  |  | 18,215 |  |  | 38,482 |  |  | 36,760 |
General and administrative | 63,548 |  |  | 49,974 |  |  | 115,728 |  |  | 102,652 |
Total | $ | 94,335 |  |  | $ | 75,844 |  |  | $ | 172,685 |  |  | $ | 156,410 |

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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 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 14 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 14 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644 Reference 5: 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 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 18 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (g) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 18 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (h) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 14 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 18 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 16 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496180-112644 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (i) -URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644 Reference 15: 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 + Details
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