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Balance Sheet Components | 12 Months Ended
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Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Balance Sheet Components | Balance Sheet Components Cash, Cash Equivalents and Short-Term Investments Cash, cash equivalents and short-term investments consisted of the following as of December 31 (in thousands):
| 2021 |  | 2020
Cash and cash equivalents: |  |  |
Cash | $ | 950,677 |  |  | $ | 993,798 |
Cash equivalents: |  |  |
Money market funds | 585,681 |  |  | 611,071 |
Total cash and cash equivalents | 1,536,358 |  |  | 1,604,869 |
Short-term investments: |  |  |
Certificates of deposit | — |  |  | 4,373 |
Publicly traded equity securities | — |  |  | 159 |
Total short-term investments | — |  |  | 4,532 |
Total cash, cash equivalents and short-term investments | $ | 1,536,358 |  |  | $ | 1,609,401 |
As of December 31, 2021 and 2020, cash and cash equivalents included investments which were readily convertible to cash and had original maturity dates of 90 days or less. Accounts Receivable Trade accounts receivable are recorded at the invoiced amount and generally do not bear interest. Accounts receivable, net, consisted of the following as of December 31 (in thousands):
| 2021 |  | 2020
Accounts receivable | $ | 693,444 |  |  | $ | 687,415 |
Allowance for credit losses | (11,635) |  |  | (10,677) |
Accounts receivable, net | $ | 681,809 |  |  | $ | 676,738 |
The following table summarizes the activity of our allowance for credit losses (in thousands):
Balance as of December 31, 2018 | $ | 15,950 |
Provision for doubtful accounts | 8,459 |
Net write-offs | (11,341) |
Impact of foreign currency exchange | (42) |
Balance as of December 31, 2019 | 13,026 |
Adjustments due to adoption of ASU 2016-13 | 900 |
Provision for doubtful accounts | 5,069 |
Net write-offs | (10,050) |
Impact of foreign currency exchange | 1,732 |
Balance as of December 31, 2020 | 10,677 |
Provision for doubtful accounts | 10,016 |
Net write-offs | (8,295) |
Impact of foreign currency exchange | (763) |
Balance as of December 31, 2021 | $ | 11,635 |
Other Current Assets Other current assets consisted of the following as of December 31 (in thousands):
| 2021 |  | 2020
Prepaid expenses | $ | 65,224 |  |  | $ | 61,424 |
Taxes receivable | 128,123 |  |  | 125,614 |
Restricted cash, current | 12,188 |  |  | 11,135 |
Other receivables | 59,224 |  |  | 44,333 |
Derivative instruments | 117,432 |  |  | 8,906 |
Contract assets, current | 65,392 |  |  | 13,534 |
Other current assets (1) | 15,156 |  |  | 58,070 |
Total other current assets | $ | 462,739 |  |  | $ | 323,016 |
(1)Other current assets included $5.3 million and $44.2 million of the current portion of the fair value of the contingent consideration from the sale of xScale™ data center facilities to the EMEA 1 Joint Venture as of December 31, 2021 and 2020, respectively. See Note 5 for further discussion. Property, Plant and Equipment, Net Property, plant and equipment, net consisted of the following as of December 31 (in thousands):
| 2021 |  | 2020
Core systems | $ | 10,808,417 |  |  | $ | 9,659,908 |
Buildings | 7,381,644 |  |  | 6,557,121 |
Leasehold improvements | 2,022,617 |  |  | 1,946,644 |
Construction in progress | 967,562 |  |  | 1,363,917 |
Personal property (1) | 1,551,642 |  |  | 1,207,669 |
Land | 970,982 |  |  | 944,094 |
| 23,702,864 |  |  | 21,679,353 |
Less accumulated depreciation | (8,257,089) |  |  | (7,176,269) |
Property, plant and equipment, net | $ | 15,445,775 |  |  | $ | 14,503,084 |
(1)Personal property included $1.2 billion and $885.5 million of capitalized internal-use software as of December 31, 2021 and 2020, respectively. Goodwill and Other Intangibles The following table presents goodwill and other intangible assets, net, for the years ended December 31, 2021 and 2020 (in thousands):
| 2021 |  | 2020
Goodwill: |  |  |
Americas | $ | 2,210,009 |  |  | $ | 2,212,782 |
EMEA | 2,472,586 |  |  | 2,611,166 |
Asia-Pacific | 689,476 |  |  | 648,605 |
| $ | 5,372,071 |  |  | $ | 5,472,553 |
Intangible assets, net: |  |  |
Intangible assets - customer relationships | $ | 2,841,372 |  |  | $ | 2,891,060 |
Intangible assets - trade names | 11,471 |  |  | 11,512 |
Intangible assets - in-place leases | 32,760 |  |  | 33,770 |
Intangible assets - licenses | 9,697 |  |  | 9,697 |
Intangible assets - at-the-money lease contracts (1) | 60,455 |  |  | 64,905 |
Intangible assets - other | 12,546 |  |  | 12,802 |
| 2,968,301 |  |  | 3,023,746 |
Accumulated amortization - customer relationships | (987,462) |  |  | (818,370) |
Accumulated amortization - trade names | (3,207) |  |  | (2,337) |
Accumulated amortization - in-place leases | (22,847) |  |  | (20,037) |
Accumulated amortization - licenses | (5,821) |  |  | (6,600) |
Accumulated amortization - other (2) | (13,697) |  |  | (5,457) |
| (1,033,034) |  |  | (852,801) |
Total intangible assets, net | $ | 1,935,267 |  |  | $ | 2,170,945 |
(1) In December 2020, we acquired an at-the-money lease contract intangible asset through an asset acquisition in Amsterdam. This intangible asset represents premiums paid to acquire a land lease at market terms. The lease has a remaining lease term of 12 years with available renewal options in 50-year increments. The intangible asset has an estimated amortization period of 12 years. The total purchase consideration for this asset acquisition was $49.4 million and we recorded $16.1 million of deferred tax liability in connection with this purchase. The transaction was accounted for as an asset acquisition since substantially all of the fair value of the acquired assets is for the identified at-the-money lease intangible asset. (2) Accumulated amortization - other includes an insignificant amount of amortization of at-the-money lease contracts. Changes in the carrying amount of goodwill by geographic regions are as follows (in thousands):
| Americas |  | EMEA |  | Asia-Pacific |  | Total
Balance as of December 31, 2019 | $ | 1,741,689 |  |  | $ | 2,426,306 |  |  | $ | 613,863 |  |  | $ | 4,781,858 |
Purchase of Packet | 230,620 |  |  | — |  |  | — |  |  | 230,620 |
Purchase of Bell | 170,548 |  |  | — |  |  | — |  |  | 170,548 |
Purchase of Axtel | 78,902 |  |  | — |  |  | — |  |  | 78,902 |
Sale of xScale data center facilities | — |  |  | — |  |  | (7,306) |  |  | (7,306) |
Impact of foreign currency exchange | (8,977) |  |  | 184,860 |  |  | 42,048 |  |  | 217,931 |
Balance as of December 31, 2020 | 2,212,782 |  |  | 2,611,166 |  |  | 648,605 |  |  | 5,472,553 |
Purchase of GPX | — |  |  | — |  |  | 77,162 |  |  | 77,162 |
Impact of foreign currency exchange | (2,773) |  |  | (138,580) |  |  | (36,291) |  |  | (177,644) |
Balance as of December 31, 2021 | $ | 2,210,009 |  |  | $ | 2,472,586 |  |  | $ | 689,476 |  |  | $ | 5,372,071 |
Changes in the net book value of intangible assets by geographic regions are as follows (in thousands):
| Americas |  | EMEA |  | Asia-Pacific |  | Total
Balance as of December 31, 2018 | $ | 1,578,971 |  |  | $ | 543,860 |  |  | $ | 210,465 |  |  | $ | 2,333,296 |
ASC 842 adoption adjustment | (108) |  |  | (20,692) |  |  | (2,405) |  |  | (23,205) |
Switch AMS1 data center acquisition | — |  |  | 4,889 |  |  | — |  |  | 4,889 |
Asset sales - NY12 data center | (8,412) |  |  | — |  |  | — |  |  | (8,412) |
Other | — |  |  | 1,096 |  |  | 472 |  |  | 1,568 |
Amortization of intangibles | (125,390) |  |  | (54,432) |  |  | (16,456) |  |  | (196,278) |
Impact of foreign currency exchange | (1,769) |  |  | (8,157) |  |  | 457 |  |  | (9,469) |
Balance as of December 31, 2019 | 1,443,292 |  |  | 466,564 |  |  | 192,533 |  |  | 2,102,389 |
Axtel acquisition | 22,750 |  |  | — |  |  | — |  |  | 22,750 |
Packet acquisition | 58,500 |  |  | — |  |  | — |  |  | 58,500 |
Bell acquisition | 75,631 |  |  | — |  |  | — |  |  | 75,631 |
Other asset acquisition(1) | — |  |  | 64,905 |  |  | — |  |  | 64,905 |
Amortization of intangibles | (133,608) |  |  | (49,417) |  |  | (16,022) |  |  | (199,047) |
Impact of foreign currency exchange | (3,476) |  |  | 35,975 |  |  | 13,318 |  |  | 45,817 |
Balance as of December 31, 2020 | 1,463,089 |  |  | 518,027 |  |  | 189,829 |  |  | 2,170,945 |
GPX acquisition | — |  |  | — |  |  | 15,472 |  |  | 15,472 |
Amortization of intangibles | (133,289) |  |  | (55,807) |  |  | (16,388) |  |  | (205,484) |
Impact of foreign currency exchange | (2,047) |  |  | (30,278) |  |  | (13,341) |  |  | (45,666) |
Balance as of December 31, 2021 | $ | 1,327,753 |  |  | $ | 431,942 |  |  | $ | 175,572 |  |  | $ | 1,935,267 |
(1) For further discussion, refer to footnote 1 of the table on the previous page. Goodwill and intangible assets which are denominated in currencies other than the U.S. Dollar are subject to foreign currency fluctuations. Our foreign currency translation gains and losses, including goodwill and intangibles, are a component of other comprehensive income and loss. Estimated future amortization expense related to these intangibles is as follows (in thousands):
Years ending: |
2022 | $ | 196,744 |
2023 | 195,030 |
2024 | 193,722 |
2025 | 191,158 |
2026 | 190,802 |
Thereafter | 967,811 |
Total | $ | 1,935,267 |
Other Assets Other assets consisted of the following as of December 31 (in thousands):
| 2021 |  | 2020
Deferred tax assets, net | $ | 59,816 |  |  | $ | 66,424 |
Prepaid expenses (1) | 87,758 |  |  | 82,443 |
Debt issuance costs, net | 2,130 |  |  | 4,261 |
Deposits | 70,548 |  |  | 69,043 |
Restricted cash | 908 |  |  | 9,691 |
Derivative instruments | 59,917 |  |  | 2,793 |
Contract assets, non-current | 55,486 |  |  | 54,050 |
Contract costs | 325,510 |  |  | 267,978 |
Equity method investments | 245,049 |  |  | 163,071 |
Other assets (2) | 18,944 |  |  | 56,293 |
Total other assets | $ | 926,066 |  |  | $ | 776,047 |
(1)Prepaid expenses included $46.0 million and $21.1 million of capitalized CCA implementation costs, net as of December 31, 2021 and 2020, respectively. (2)In connection with the Metronode Acquisition in 2018, we had indemnification assets of $42.8 million as of December 31, 2020, which represented the seller's obligation under the purchase agreement to reimburse pre-acquisition tax liabilities settled after the acquisition. The amount was insignificant as of December 31, 2021. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following as of December 31 (in thousands):
| 2021 |  | 2020
Accounts payable | $ | 84,084 |  |  | $ | 77,705 |
Accrued compensation and benefits | 364,783 |  |  | 317,117 |
Accrued interest | 81,893 |  |  | 79,437 |
Accrued taxes (1) | 117,061 |  |  | 153,804 |
Accrued utilities and security | 94,251 |  |  | 76,910 |
Accrued other | 137,072 |  |  | 139,889 |
Total accounts payable and accrued expenses | $ | 879,144 |  |  | $ | 844,862 |
(1)Accrued taxes included income taxes payable of $51.3 million and $59.8 million as of December 31, 2021 and 2020, respectively. Other Current Liabilities Other current liabilities consisted of the following as of December 31 (in thousands):
| 2021 |  | 2020
Deferred revenue, current | $ | 109,736 |  |  | $ | 101,258 |
Customer deposits | 16,380 |  |  | 17,115 |
Derivative instruments | 13,373 |  |  | 188,726 |
Dividends payable, current | 12,027 |  |  | 10,873 |
Asset retirement obligations | 8,756 |  |  | 3,993 |
Other current liabilities | 54,247 |  |  | 32,403 |
Total other current liabilities | $ | 214,519 |  |  | $ | 354,368 |
Other Liabilities Other liabilities consisted of the following as of December 31 (in thousands):
| 2021 |  | 2020
Asset retirement obligations | $ | 108,800 |  |  | $ | 109,776 |
Deferred tax liabilities, net | 340,287 |  |  | 290,366 |
Deferred revenue, non-current | 87,495 |  |  | 71,242 |
Accrued taxes | 124,032 |  |  | 178,371 |
Dividends payable, non-current | 9,750 |  |  | 7,947 |
Customer deposits | 1,534 |  |  | 1,088 |
Derivative instruments | 20,899 |  |  | 211,733 |
Other liabilities | 70,614 |  |  | 78,476 |
Total other liabilities | $ | 763,411 |  |  | $ | 948,999 |
The following table summarizes the activities of our asset retirement obligation ("ARO") (in thousands):
Asset retirement obligations as of December 31, 2018 | $ | 96,663 |
Additions | 6,980 |
Adjustments (1) | (7,969) |
Accretion expense | 6,290 |
Impact of foreign currency exchange | 451 |
Asset retirement obligations as of December 31, 2019 | 102,415 |
Additions | 5,909 |
Adjustments (1) | (4,241) |
Accretion expense | 6,331 |
Impact of foreign currency exchange | 3,355 |
Asset retirement obligations as of December 31, 2020 | 113,769 |
Additions | 7,483 |
Adjustments (1) | (6,591) |
Accretion expense | 6,518 |
Impact of foreign currency exchange | (3,623) |
Asset retirement obligations as of December 31, 2021 | $ | 117,556 |
(1)The ARO adjustments are primarily due to lease amendments and acquisition of real estate assets, as well as other adjustments.

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