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Segment Information | 12 Months Ended
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Dec. 31, 2019
Segment Reporting [Abstract] |
Segment Information | During the fourth quarter of 2019, as a result of the realignment of our global managerial structure and changes to our internal financial reporting associated with Project Summit, we reassessed the composition of our reportable operating segments and reporting units. As a result of the managerial structure changes associated with Project Summit, we now have the following reportable operating segments: (i) Global Records and Information Management ("Global RIM") Business (which consists of the former North American Records and Information Management Business (excluding our technology escrow services business, which is now included as a component of our Corporate and Other Business segment), North American Data Management Business, Western European Business and Other International Business); (ii) Global Data Center Business; and (iii) Corporate and Other Business (which includes our Adjacent Businesses and our technology escrow services business). As a result of these changes, previously reported segment information has been restated to conform to the current presentation. As of December 31, 2019, our three reportable operating segments are described as follows:
• | Global RIM Business—provides (i) storage of physical records, including media such as microfilm and microfiche, film, X-rays and blueprints, including healthcare information services, vital records services, service and courier operations, and the collection, handling and disposal of sensitive documents for customers in approximately 50 countries ("Records Management"), (ii) storage and rotation of backup computer media as part of corporate disaster recovery plans, including service and courier operations (“Data Protection & Recovery”); server and computer backup services; and related services offerings, (collectively, "Data Management"), (iii) Information Governance and Digital Solutions, which develops, implements and supports comprehensive storage and information management solutions for the complete lifecycle of our customers' information, including the management of physical records, document conversion and digital storage in the United States and Canada, (iv) the shredding of sensitive documents for customers that, in many cases, store their records with us ("Secure Shredding") and the subsequent sale of shredded paper for recycling, and (v) on-demand, valet storage for consumers across 24 markets in North America through the MakeSpace JV (as defined in Note 13).
• | Global Data Center Business—provides enterprise-class data center facilities to protect mission-critical assets and ensure the continued operation of our customers’ IT infrastructure, with secure and reliable data center options. As of December 31, 2019, our Global Data Center Business footprint spanned nine markets in the United States: Denver, Colorado; Kansas City, Missouri; Boston, Massachusetts; Boyers, Pennsylvania; Manassas, Virginia; Edison, New Jersey; Columbus, Ohio; and Phoenix and Scottsdale, Arizona and four international markets: Amsterdam, London, and Singapore, with land held for development in Frankfurt.
• | Corporate and Other Business—consists primarily of Adjacent Businesses and other corporate items. Our Adjacent Businesses is comprised of (i) helping entertainment and media 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, throughout the United States, Canada, France, China - Hong Kong S.A.R., the Netherlands and the United Kingdom ("Entertainment Services") and (ii) technical expertise in the handling, installation and storing of art in the United States, Canada and Europe ("Fine Arts"). Additionally, our Corporate and Other Business segment includes costs related to executive and staff functions, including finance, human resources and IT, which benefit the enterprise as a whole, and stock-based employee compensation expense associated with all stock options, restricted stock units, performance units and shares of stock issued under our employee stock purchase plan. Additionally, our Corporate and Other Business segment includes our technology escrow services business in the United States.
An analysis of our business segment information and reconciliation to the accompanying Consolidated Financial Statements is as follows:
| Global RIM Business |  | Global Data Center Business |  | Corporate and Other Business |  | Total Consolidated
As of and for the Year Ended December 31, 2019 |  |  |  |  |  |  |  |  |  |
Total Revenues | $ | 3,812,433 |  |  | $ | 257,151 |  |  | $ | 193,000 |  |  | $ | 4,262,584 |
Storage Rental | 2,320,076 |  |  | 246,925 |  |  | 114,086 |  |  | 2,681,087 |
Service | 1,492,357 |  |  | 10,226 |  |  | 78,914 |  |  | 1,581,497 |
Depreciation and Amortization | 454,652 |  |  | 133,927 |  |  | 69,622 |  |  | 658,201 |
Depreciation | 330,534 |  |  | 78,939 |  |  | 46,850 |  |  | 456,323 |
Amortization | 124,118 |  |  | 54,988 |  |  | 22,772 |  |  | 201,878 |
Adjusted EBITDA | 1,563,223 |  |  | 121,517 |  |  | (247,135 | ) |  | 1,437,605 |
Total Assets(1) | 10,753,218 |  |  | 2,535,848 |  |  | 527,750 |  |  | 13,816,816 |
Expenditures for Segment Assets | 398,690 |  |  | 427,935 |  |  | 56,242 |  |  | 882,867 |
Capital Expenditures | 248,232 |  |  | 392,029 |  |  | 52,722 |  |  | 692,983 |
Cash Paid for Acquisitions, Net of Cash Acquired | 54,717 |  |  | — |  |  | 3,520 |  |  | 58,237 |
Acquisitions of Customer Relationships, Customer Inducements, Contract Fulfillment Costs and third-party commissions | 95,741 |  |  | 35,906 |  |  | — |  |  | 131,647 |
As of and for the Year Ended December 31, 2018 |  |  |  |  |  |  |  |  |  |
Total Revenues | $ | 3,842,600 |  |  | $ | 228,983 |  |  | $ | 154,178 |  |  | $ | 4,225,761 |
Storage Rental | 2,301,344 |  |  | 218,675 |  |  | 102,436 |  |  | 2,622,455 |
Service | 1,541,256 |  |  | 10,308 |  |  | 51,742 |  |  | 1,603,306 |
Depreciation and Amortization | 472,155 |  |  | 105,680 |  |  | 61,679 |  |  | 639,514 |
Depreciation | 341,384 |  |  | 58,707 |  |  | 52,649 |  |  | 452,740 |
Amortization | 130,771 |  |  | 46,973 |  |  | 9,030 |  |  | 186,774 |
Adjusted EBITDA | 1,569,353 |  |  | 99,574 |  |  | (244,103 | ) |  | 1,424,824 |
Total Assets(1) | 9,135,198 |  |  | 2,217,505 |  |  | 504,515 |  |  | 11,857,218 |
Expenditures for Segment Assets | 443,634 |  |  | 1,794,386 |  |  | 79,286 |  |  | 2,317,306 |
Capital Expenditures | 254,308 |  |  | 152,739 |  |  | 53,015 |  |  | 460,062 |
Cash Paid for Acquisitions, Net of Cash Acquired | 93,217 |  |  | 1,639,427 |  |  | 25,913 |  |  | 1,758,557 |
Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs | 96,109 |  |  | 2,220 |  |  | 358 |  |  | 98,687 |
As of and for the Year Ended December 31, 2017 |  |  |  |  |  |  |  |  |  |
Total Revenues | $ | 3,706,110 |  |  | $ | 37,694 |  |  | $ | 101,774 |  |  | $ | 3,845,578 |
Storage Rental | 2,261,831 |  |  | 35,839 |  |  | 79,887 |  |  | 2,377,557 |
Service | 1,444,279 |  |  | 1,855 |  |  | 21,887 |  |  | 1,468,021 |
Depreciation and Amortization | 458,634 |  |  | 10,224 |  |  | 53,518 |  |  | 522,376 |
Depreciation | 351,915 |  |  | 8,617 |  |  | 45,751 |  |  | 406,283 |
Amortization | 106,719 |  |  | 1,607 |  |  | 7,767 |  |  | 116,093 |
Adjusted EBITDA | 1,470,579 |  |  | 11,275 |  |  | (238,281 | ) |  | 1,243,573 |
Total Assets(1) | 9,151,755 |  |  | 382,198 |  |  | 1,441,434 |  |  | 10,975,387 |
Expenditures for Segment Assets | 424,628 |  |  | 86,543 |  |  | 126,850 |  |  | 638,021 |
Capital Expenditures | 262,474 |  |  | 32,015 |  |  | 48,642 |  |  | 343,131 |
Cash Paid for Acquisitions, Net of Cash Acquired(2) | 86,969 |  |  | 54,528 |  |  | 78,208 |  |  | 219,705 |
Acquisitions of Customer Relationships and Customer Inducements | 75,185 |  |  | — |  |  | — |  |  | 75,185 |
_______________________________________________________________________________
(1) | Excludes all intercompany receivables or payables and investment in subsidiary balances. Total Assets as of December 31, 2019 reflects the adoption of ASU 2016-02. Total Assets for the Corporate and Other Business segment have been restated to reflect the impact of the Netherlands VAT liability (as discussed in Note 2.y.) which resulted in an increase in total assets for this segment of $4,971 and $2,985, at December 31, 2018 and 2017, respectively.
The accounting policies of the reportable segments are the same as those described in Note 2. Adjusted EBITDA for each segment is defined as income (loss) from continuing operations before interest expense, net, provision (benefit) for income taxes, depreciation and amortization, and also excludes certain items that we believe are not indicative of our core operating results, specifically: (1) (gain) loss on disposal/write-down of property, plant and equipment (including real estate); (2) intangible impairments; (3) other expense (income), net (which includes foreign currency transaction (gains) losses, net); (4) Significant Acquisition Costs; and (5) Restructuring Charges. Internally, we use Adjusted EBITDA as the basis for evaluating the performance of, and allocated resources to, our operating segments. A reconciliation of Adjusted EBITDA to income (loss) from continuing operations on a consolidated basis is as follows:
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
Adjusted EBITDA | $ | 1,437,605 |  |  | $ | 1,424,824 |  |  | $ | 1,243,573 |
(Add)/Deduct: |  |  |  |  |
Provision (Benefit) for Income Taxes | 59,931 |  |  | 42,753 |  |  | 22,962 |
Other Expense (Income), Net | 33,898 |  |  | (11,692 | ) |  | 79,429 |
Interest Expense, Net | 419,298 |  |  | 409,648 |  |  | 353,645 |
(Gain) Loss on disposal/write-down of property, plant and equipment, net | (63,824 | ) |  | (73,622 | ) |  | (766 | )
Depreciation and amortization | 658,201 |  |  | 639,514 |  |  | 522,376 |
Significant Acquisition Costs | 13,293 |  |  | 50,665 |  |  | 84,901 |
Restructuring Charges | 48,597 |  |  | — |  |  | — |
Intangible impairments | — |  |  | — |  |  | 3,011 |
Income (Loss) from Continuing Operations | $ | 268,211 |  |  | $ | 367,558 |  |  | $ | 178,015 |
Information as to our operations in different geographical areas is as follows:
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
Revenues: |  |  |  |  |  |  |  |
United States | $ | 2,632,586 |  |  | $ | 2,579,847 |  |  | $ | 2,310,296 |
United Kingdom | 274,931 |  |  | 280,993 |  |  | 246,373 |
Canada | 243,033 |  |  | 249,505 |  |  | 243,625 |
Australia | 143,511 |  |  | 155,367 |  |  | 157,333 |
Remaining Countries | 968,523 |  |  | 960,049 |  |  | 887,951 |
Total Revenues | $ | 4,262,584 |  |  | $ | 4,225,761 |  |  | $ | 3,845,578 |
Long-lived Assets: |  |  |  |  |  |
United States | $ | 7,862,262 |  |  | $ | 6,902,232 |  |  | $ | 5,476,551 |
United Kingdom | 755,859 |  |  | 547,768 |  |  | 529,233 |
Canada | 556,591 |  |  | 453,398 |  |  | 500,396 |
Australia | 530,755 |  |  | 442,755 |  |  | 470,432 |
Remaining Countries | 2,875,010 |  |  | 2,302,951 |  |  | 2,048,460 |
Total Long-lived Assets | $ | 12,580,477 |  |  | $ | 10,649,104 |  |  | $ | 9,025,072 |
Information as to our revenues by product and service lines by segment are as follows:
| Global RIM Business |  | Global Data Center Business |  | Corporate and Other Business |  | Total Consolidated
For the Year Ended December 31, 2019 |  |  |  |  |  |  |  |  |  |
Records Management(1) | $ | 2,866,192 |  |  | $ | — |  |  | $ | 128,954 |  |  | $ | 2,995,146 |
Data Management(1) | 520,082 |  |  | — |  |  | 64,046 |  |  | 584,128 |
Information Destruction(1)(2) | 426,159 |  |  | — |  |  | — |  |  | 426,159 |
Data Center | — |  |  | 257,151 |  |  | — |  |  | 257,151 |
Total Revenues | $ | 3,812,433 |  |  | $ | 257,151 |  |  | $ | 193,000 |  |  | $ | 4,262,584 |
For the Year Ended December 31, 2018 |  |  |  |  |  |  |
Records Management(1) | $ | 2,871,253 |  |  | $ | — |  |  | $ | 96,669 |  |  | $ | 2,967,922 |
Data Management(1) | 539,035 |  |  | — |  |  | 57,509 |  |  | 596,544 |
Information Destruction(1)(2) | 432,312 |  |  | — |  |  | — |  |  | 432,312 |
Data Center | — |  |  | 228,983 |  |  | — |  |  | 228,983 |
Total Revenues | $ | 3,842,600 |  |  | $ | 228,983 |  |  | $ | 154,178 |  |  | $ | 4,225,761 |
For the Year Ended December 31, 2017 |  |  |  |  |  |  |  |
Records Management(1) | $ | 2,778,024 |  |  | $ | — |  |  | $ | 69,667 |  |  | $ | 2,847,691 |
Data Management(1) | 542,148 |  |  | — |  |  | 32,103 |  |  | 574,251 |
Information Destruction(1)(2) | 385,938 |  |  | — |  |  | 4 |  |  | 385,942 |
Data Center | — |  |  | 37,694 |  |  | — |  |  | 37,694 |
Total Revenues | $ | 3,706,110 |  |  | $ | 37,694 |  |  | $ | 101,774 |  |  | $ | 3,845,578 |
_______________________________________________________________________________
(1) | Each of the offerings within our product and service lines has a component of revenue that is storage rental related and a component that is service revenues, except the destruction services offering, which does not have a storage rental component.
(2) | Includes Secure Shredding services.
Significant Acquisition Costs included in the accompanying Consolidated Statements of Operations by segment are as follows:
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
Global RIM Business | $ | 8,223 |  |  | $ | 20,590 |  |  | $ | 47,722 |
Global Data Center Business | 337 |  |  | 11,423 |  |  | — |
Corporate and Other Business | 4,733 |  |  | 18,652 |  |  | 37,179 |
Total Significant Acquisition Costs | $ | 13,293 |  |  | $ | 50,665 |  |  | $ | 84,901 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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