Cash and cash equivalents include cash on hand and cash invested in highly liquid short-term securities, which have remaining maturities at the date of purchase of less than 90 days. Cash and cash equivalents are carried at cost, which approximates fair value.

We maintain an allowance for doubtful accounts and a credit memo reserve for estimated losses resulting from the potential inability of our customers to make required payments and potential disputes regarding billing and service issues. Rollforward of allowance for doubtful accounts and credit memo reserves for the three months ended March 31, 2021 is as follows:



Balance as of December 31, 2020	$	56,981
Credit memos charged to revenue	13,026
Allowance for bad debts charged to expense	9,850
Deductions and other(1)	(19,114)
Balance as of March 31, 2021	$	60,743

(1)Primarily consists of the issuance of credit memos, the write-off of accounts receivable and the impact associated with currency translation adjustments.

We lease facilities for certain warehouses, data centers and office space. We also have land leases, including those on which certain facilities are located. Operating and financing lease right-of-use assets and lease liabilities as of March 31, 2021 and December 31, 2020 are as follows:


DESCRIPTION	MARCH 31, 2021		DECEMBER 31, 2020
Assets:
Operating lease right-of-use assets	$	2,205,299	$	2,196,502
Financing lease right-of-use assets, net of accumulated depreciation(1)	300,399		310,534
Liabilities:
Current
Operating lease liabilities	$	248,319	$	250,239
Financing lease liabilities(1)	42,692		43,149
Long-term
Operating lease liabilities	2,061,140		2,044,598
Financing lease liabilities(1)	311,448		323,162

(1)Financing lease right-of-use assets, current financing lease liabilities and long-term financing lease liabilities are included within Property, Plant and Equipment, Net, Current portion of long-term debt and Long-term Debt, net of current portion, respectively, within our Condensed Consolidated Balance Sheets.


	THREE MONTHS ENDED MARCH 31,
DESCRIPTION	2021		2020
Operating lease cost(1)	$	132,675	$	123,289
Financing lease cost:
Depreciation of financing lease right-of-use assets	$	12,648	$	12,955
Interest expense for financing lease liabilities	4,975		4,844

(1)Operating lease cost, the majority of which is included in Cost of sales, includes variable lease costs of $28,368 and $27,805 for the three months ended March 31, 2021 and 2020, respectively.


	THREE MONTHS ENDED MARCH 31,
CASH PAID FOR AMOUNTS INCLUDED IN MEASUREMENT OF LEASE LIABILITIES:	2021		2020
Operating cash flows used in operating leases	$	93,645	$	86,418

Operating cash flows used in financing leases (interest)	4,975		4,844
Financing cash flows used in financing leases	12,441		12,739

NON-CASH ITEMS:
Operating lease modifications and reassessments	$	31,994	$	34,916
New operating leases (including acquisitions and sale-leaseback transactions)	48,200		110,609

Our reporting units as of December 31, 2020 are described in detail in Note 2.k. to Notes to Consolidated Financial Statements included in our Annual Report.

The changes in the carrying value of goodwill attributable to each reportable operating segment for the three months ended March 31, 2021 are as follows:


	GLOBAL RIM BUSINESS		GLOBAL DATA CENTER BUSINESS		CORPORATE AND OTHER BUSINESS		TOTAL CONSOLIDATED
Goodwill balance, net of accumulated amortization as of December 31, 2020	$	4,024,182	$	436,987	$	96,440	$	4,557,609




Fair value and other adjustments	(5,804)		—		—		(5,804)
Currency effects	(24,298)		(6,359)		(373)		(31,030)
Goodwill balance, net accumulated amortization as of March 31, 2021	$	3,994,080	$	430,628	$	96,067	$	4,520,775

Accumulated goodwill impairment balance as of March 31, 2021	$	132,409	$	—	$	26,011	$	158,420

In October 2020, we formed a joint venture with AGC Equity Partners (the “Frankfurt JV”). Our equity interest in the Frankfurt JV at both March 31, 2021 and December 31, 2020 was 20%, and the carrying value of our investment in the Frankfurt JV at March 31, 2021 and December 31, 2020 was $26,257 and $26,500, respectively, which is presented as a component of Other within Other assets, net in our Condensed Consolidated Balance Sheets.

During 2019, we formed a joint venture with MakeSpace Labs, Inc. (the “MakeSpace JV”). Our equity interest in the MakeSpace JV at March 31, 2021 and December 31, 2020 was 42% and 39%, respectively, and the carrying value of our investment in the MakeSpace JV at March 31, 2021 and December 31, 2020 was $21,075 and $16,924, respectively, which is presented as a component of Other within Other assets, net in our Condensed Consolidated Balance Sheets.


			FAIR VALUE MEASUREMENTS AT MARCH 31, 2021 USING
DESCRIPTION	TOTAL CARRYING VALUE AT MARCH 31, 2021		QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Money Market Funds	$	7,673	$	—	$	7,673	$	—
Time Deposits	1,291		—		1,291		—
Trading Securities	11,323		11,067		256		—

Derivative Liabilities	34,497		—		34,497		—


			FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2020 USING
DESCRIPTION	TOTAL CARRYING VALUE AT DECEMBER 31, 2020		QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Money Market Funds	$	62,657	$	—	$	62,657	$	—
Time Deposits	2,121		—		2,121		—
Trading Securities	10,892		10,636		256		—
Derivative Liabilities	49,703		—		49,703		—

There were no material items that are measured at fair value on a non-recurring basis at March 31, 2021 and December 31, 2020, other than those disclosed in Note 2.o. to Notes to Consolidated Financial Statements included in our Annual Report which are based on Level 3 inputs.


	THREE MONTHS ENDED MARCH 31, 2021						THREE MONTHS ENDED MARCH 31, 2020
	FOREIGN CURRENCY TRANSLATION AND OTHER ADJUSTMENTS		CHANGE IN FAIR VALUE OF DERIVATIVE INSTRUMENTS		TOTAL		FOREIGN CURRENCY TRANSLATION AND OTHER ADJUSTMENTS		CHANGE IN FAIR VALUE OF DERIVATIVE INSTRUMENTS		TOTAL
Beginning of Period	$	(206,190)	$	(49,703)	$	(255,893)	$	(252,825)	$	(9,756)	$	(262,581)
Other comprehensive (loss) income:
Foreign currency translation and other adjustments	(66,224)		—		(66,224)		(222,305)		—		(222,305)
Change in fair value of derivative instruments	—		15,206		15,206		—		(8,362)		(8,362)
Total other comprehensive (loss) income	(66,224)		15,206		(51,018)		(222,305)		(8,362)		(230,667)
End of Period	$	(272,414)	$	(34,497)	$	(306,911)	$	(475,130)	$	(18,118)	$	(493,248)

The costs associated with the initial movement of customer records into physical storage and certain commissions are considered costs to obtain or fulfill customer contracts (collectively, “Contract Fulfillment Costs”). Contract Fulfillment Costs as of March 31, 2021 and December 31, 2020, are as follows:


	MARCH 31, 2021						DECEMBER 31, 2020
	GROSS CARRYING AMOUNT		ACCUMULATED AMORTIZATION		NET CARRYING AMOUNT		GROSS CARRYING AMOUNT		ACCUMULATED AMORTIZATION		NET CARRYING AMOUNT
Intake Costs asset	$	66,337	$	(35,904)	$	30,433	$	63,721	$	(33,352)	$	30,369
Commissions asset	99,721		(43,125)		56,596		91,069		(38,787)		52,282


DESCRIPTION	LOCATION IN BALANCE SHEET	MARCH 31, 2021		DECEMBER 31, 2020
Deferred revenue - Current	Deferred revenue	$	284,974	$	295,785
Deferred revenue - Long-term	Other Long-term Liabilities	36,581		35,612

Our Global Data Center Business features storage rental provided to customers at contractually specified rates over a fixed contractual period, which are accounted for in accordance with Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842), as amended (“ASU 2016-02”). Storage rental revenue, including revenue associated with power and connectivity, associated with our Global Data Center Business for the three months ended March 31, 2021 and 2020 are as follows:

(1)Revenue associated with power and connectivity included within storage rental revenue was $13,133 and $11,413 for the three months ended March 31, 2021 and 2020, respectively.

Stock-based compensation expense for the cost of stock options, restricted stock units (“RSUs”), performance units (“PUs”) and shares of stock issued under our employee stock purchase plan (collectively, “Employee Stock-Based Awards”) for the three months ended March 31, 2021 and 2020 is as follows:


	THREE MONTHS ENDED MARCH 31,
DESCRIPTION	2021		2020
Foreign currency transaction losses (gains), net	$	2,314	$	(37,399)

Other, net(1)	2,399		(5,327)
Other Expense (Income), Net	$	4,713	$	(42,726)

(1)Other, net for the three months ended March 31, 2021 is primarily comprised of losses on our equity method investments. Other, net for the three months ended March 31, 2020 is primarily comprised of a gain on our previously held 25% equity investment in OSG Records Management (Europe) Limited (“OSG”), which is partially offset by losses on our equity method investments.

(1)The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three months ended March 31, 2021 were the benefits derived from the dividends paid deduction and the impacts of differences in the tax rates at which our foreign earnings are subject.

(2)The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three months ended March 31, 2020 were the benefits derived from the dividends paid deduction and foreign exchange losses in different jurisdictions with different tax rates as well as the impacts of differences in the tax rates at which our foreign earnings are subject.


	THREE MONTHS ENDED MARCH 31,
	2021		2020
Net Income (Loss)	$	46,631	$	64,892
Less: Net Income (Loss) Attributable to Noncontrolling Interests	1,028		917
Net Income (Loss) Attributable to Iron Mountain Incorporated (utilized in numerator of Earnings Per Share calculation)	$	45,603	$	63,975
Weighted-average shares—basic	288,756,000		287,840,000
Effect of dilutive potential stock options	56,437		51,799
Effect of dilutive potential RSUs and PUs	715,850		467,334
Weighted-average shares—diluted	289,528,287		288,359,133
Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated:
Basic	$	0.16	$	0.22
Diluted	$	0.16	$	0.22
Antidilutive stock options, RSUs and PUs, excluded from the calculation	4,708,068		5,513,714

In December 2019, the Financial Accounting Standards Board issued ASU No. 2019-12, Income Taxes (Topic 740) (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions for recognizing deferred taxes for investments, performing intra-period allocation and calculating income taxes in interim periods. ASU 2019-12 also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. We adopted ASU 2019-12 on January 1, 2021. ASU 2019-12 did not have a material impact on our consolidated financial statements.