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. The rollforward of the allowance for doubtful accounts and credit memo reserves for the three months ended March 31, 2022 is as follows:



Balance as of December 31, 2021	$	62,009
Credit memos charged to revenue	12,352
Allowance for bad debts charged to expense	6,699
Deductions and other(1)	(19,893)
Balance as of March 31, 2022	$	61,167

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

Inventories are stated at the lower of cost or net realizable value, based on a first-in, first-out methodology. Our inventory primarily consists of information technology-related assets including memory, central processing units, hard drives, adaptors and networking. All of our inventory is considered finished goods. Inventory is included as a component of Prepaid expenses and other in our Condensed Consolidated Balance Sheets. At March 31, 2022, we have inventory of approximately $24,900, net of related reserves for obsolete, excess and slow-moving inventory, which was acquired as part of the ITRenew Transaction (as defined in Note 3). We had no inventory at December 31, 2021.

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, 2022 and December 31, 2021 are as follows:


DESCRIPTION	MARCH 31, 2022		DECEMBER 31, 2021
Assets:
Operating lease right-of-use assets	$	2,343,627	$	2,314,422
Financing lease right-of-use assets, net of accumulated depreciation(1)	284,468		298,049
Liabilities:
Current
Operating lease liabilities	$	265,186	$	259,957
Financing lease liabilities(1)	39,397		41,168
Long-term
Operating lease liabilities	$	2,196,846	$	2,171,472
Financing lease liabilities(1)	301,603		315,561

(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		2022		2021
Operating lease cost(1)		$	143,530	$	132,675
Financing lease cost:
Depreciation of financing lease right-of-use assets		$	11,454	$	12,648
Interest expense for financing lease liabilities		4,678		4,975

(1)Operating lease cost, the majority of which is included in Cost of sales, includes variable lease costs of $30,508 and $28,368 for the three months ended March 31, 2022 and 2021, respectively.


	THREE MONTHS ENDED MARCH 31,
CASH PAID FOR AMOUNTS INCLUDED IN MEASUREMENT OF LEASE LIABILITIES:	2022		2021
Operating cash flows used in operating leases	$	101,605	$	93,645

Operating cash flows used in financing leases (interest)	4,678		4,975
Financing cash flows used in financing leases	10,362		12,441

NON-CASH ITEMS:
Operating lease modifications and reassessments	$	23,767	$	31,994
New operating leases (including acquisitions and sale-leaseback transactions)	125,902		48,200

Our reporting units as of December 31, 2021 are described in detail in Note 2.k. to Notes to Consolidated Financial Statements included in our Annual Report. The goodwill associated with acquisitions completed during the first three months of 2022 (as described in Note 3) has been incorporated into our reporting units as they existed as of December 31, 2021.


	GLOBAL RIM BUSINESS		GLOBAL DATA CENTER BUSINESS		CORPORATE AND OTHER BUSINESS		TOTAL CONSOLIDATED
Goodwill balance, net of accumulated amortization as of December 31, 2021	$	3,976,261	$	426,074	$	61,196	$	4,463,531

Non-tax deductible goodwill acquired during the period	978		—		580,150		581,128

Fair value and other adjustments(1)	(16,993)		—		—		(16,993)
Currency effects	(672)		(2,702)		(601)		(3,975)
Goodwill balance, net accumulated amortization as of March 31, 2022	$	3,959,574	$	423,372	$	640,745	$	5,023,691

Accumulated goodwill impairment balance as of March 31, 2022	$	132,409	$	—	$	26,011	$	158,420

(1) This amount represents an adjustment to goodwill as a result of the deconsolidation of certain businesses, as described in Note 2.k.


			FAIR VALUE MEASUREMENTS AT MARCH 31, 2022 USING
DESCRIPTION	TOTAL CARRYING VALUE AT MARCH 31, 2022		QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Money Market Funds	$	28,718	$	—	$	28,718	$	—
Time Deposits	3,167		—		3,167		—
Trading Securities	10,442		10,355		87		—
Derivative Assets	19,443		—		19,443		—
Deferred Purchase Obligation (as defined in Note 3)	275,100		—		—		275,100


			FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2021 USING
DESCRIPTION	TOTAL CARRYING VALUE AT DECEMBER 31, 2021		QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1)		SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Money Market Funds	$	101,022	$	—	$	101,022	$	—
Time Deposits	2,238		—		2,238		—
Trading Securities	11,147		11,062		85		—
Derivative Assets	11,021		—		11,021		—
Derivative Liabilities	8,344		—		8,344		—

There were no material items that are measured at fair value on a non-recurring basis at March 31, 2022 and December 31, 2021, other than (i) those disclosed in Note 2.o. to Notes to Consolidated Financial Statements included in our Annual Report, (ii) assets acquired and liabilities assumed through the ITRenew Transaction (as defined and described in Note 3), (iii) our investment in the Clutter JV (as defined in Note 4), and (iv) the fair value of our retained investment of our deconsolidated businesses (as described in Note 2.k.), all of which are based on Level 3 inputs. The fair value of the Deferred Purchase Obligation associated with the ITRenew Transaction was determined utilizing a Monte-Carlo model and takes into account our current forecasted projections as it relates to the underlying performance of the business.


	THREE MONTHS ENDED MARCH 31, 2022						THREE MONTHS ENDED MARCH 31, 2021
	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	$	(341,024)	$	2,677	$	(338,347)	$	(206,190)	$	(49,703)	$	(255,893)
Other comprehensive (loss) income):
Foreign currency translation and other adjustments	27,223		—		27,223		(66,224)		—		(66,224)
Change in fair value of derivative instruments	—		16,766		16,766		—		15,206		15,206
Total other comprehensive (loss) income	27,223		16,766		43,989		(66,224)		15,206		(51,018)
End of Period	$	(313,801)	$	19,443	$	(294,358)	$	(272,414)	$	(34,497)	$	(306,911)

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, 2022 and December 31, 2021 are as follows:


	MARCH 31, 2022						DECEMBER 31, 2021
	GROSS CARRYING AMOUNT		ACCUMULATED AMORTIZATION		NET CARRYING AMOUNT		GROSS CARRYING AMOUNT		ACCUMULATED AMORTIZATION		NET CARRYING AMOUNT
Intake Costs asset	$	71,731	$	(45,432)	$	26,299	$	71,336	$	(42,678)	$	28,658
Commissions asset	121,501		(54,356)		67,145		114,791		(50,553)		64,238


DESCRIPTION	LOCATION IN BALANCE SHEET	MARCH 31, 2022		DECEMBER 31, 2021
Deferred revenue - Current	Deferred revenue	$	301,965	$	307,470
Deferred revenue - Long-term	Other Long-term Liabilities	31,532		33,691

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 Codification (“ASC”) No. 842 (“ASC 842”), Leases, as amended. Storage rental revenue, including revenue associated with power and connectivity, associated with our Global Data Center Business for the three months ended March 31, 2022 and 2021 are as follows:

Our stock-based compensation expense includes the cost of stock options, restricted stock units (“RSUs”), performance units (“PUs”) and shares of stock issued under our employee stock purchase plan (“ESPP”) (together, the “Employee Stock-Based Awards”).

•Upon an award recipient's retirement on or after attaining age 55 with at least five years of service, if the sum of (i) the award recipient’s age at retirement and (ii) the award recipient’s years of service with us totals at least 65, the award recipient is entitled to continued vesting of any outstanding Employee Stock-Based Awards, provided that their retirement occurs on or after a minimum of six months from the grant date (the “Retirement Criteria”).

•Accordingly, (i) grants of Employee Stock-Based Awards to an employee who has met the Retirement Criteria on or before the date of grant, or will meet the Retirement Criteria before the six month anniversary in the year of the grant, will be expensed over six months from the date of grant and (ii) grants of Employee Stock-Based Awards to employees who will meet the Retirement Criteria during the award’s normal vesting period will be expensed between the date of grant and the date upon which the award recipient meets the Retirement Criteria.

•Stock options and RSUs granted to award recipients who meet the Retirement Criteria will be delivered to the award recipient based upon the original vesting schedule. If an award recipient retires and has met the Retirement Criteria, stock options will remain exercisable until the original expiration date of the stock options. PUs granted to award recipients who meet the Retirement Criteria will be delivered in accordance with the original vesting schedule of the applicable PU award and remain subject to the same performance conditions.

Acquisition and integration costs represent operating expenditures directly associated with the closing and integration activities of our business acquisitions that have closed, or are highly probable of closing, and include (i) advisory, legal and professional fees to complete business acquisitions and (ii) costs to integrate acquired businesses into our existing operations, including move, severance, facility upgrade and system integration costs (collectively, “Acquisition and Integration Costs”). Acquisition and Integration Costs do not include costs associated with the formation of joint ventures or costs associated with the acquisition of customer relationships. Total Acquisition and Integration Costs for the three months ended March 31, 2022 and 2021 is $15,661 and $0, respectively.


	THREE MONTHS ENDED MARCH 31,
DESCRIPTION	2022		2021
Foreign currency transaction (gains) losses, net	$	(13,201)	$	2,314
Debt extinguishment expense	671		—
Other, net(1)	68,431		2,399
Other Expense (Income), Net	$	55,901	$	4,713

(1)On March 24, 2022, as a result of our loss of control, we deconsolidated the businesses included in the acquisition of OSG Records Management (Europe) Limited, excluding Ukraine. We recognized a loss of approximately $105,800 associated with the deconsolidation to Other expense (income), net in the first quarter of 2022 representing the difference between the net asset value prior to the deconsolidation and subsequent remeasurement of the retained investment to fair value of zero. We have concluded that the deconsolidation does not meet the criteria to be reported as discontinued operations in our consolidated financial statements, as it does not represent a strategic shift that will have a major effect on our operations and financial results. The loss was partially offset by a gain of approximately $35,800 associated with the Clutter Transaction (as defined in Note 4).

(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, 2022 were the benefits derived from the dividends paid deduction, the differences in the tax rates to which our foreign earnings are subject, and a release of valuation allowances on deferred tax assets of our U.S. taxable REIT subsidiaries (“TRS”) of approximately $9,900 as a result of the ITRenew Transaction.

(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, 2021 were the benefits derived from the dividends paid deduction and the impacts of differences in the tax rates to which our foreign earnings are subject.


	THREE MONTHS ENDED MARCH 31,
	2022		2021
Net Income (Loss)	$	41,707	$	46,631
Less: Net (Loss) Income Attributable to Noncontrolling Interests	(592)		1,028
Net Income (Loss) Attributable to Iron Mountain Incorporated (utilized in numerator of Earnings Per Share calculation)	$	42,299	$	45,603
Weighted-average shares—basic	290,328,000		288,756,000
Effect of dilutive potential stock options	995,625		56,437
Effect of dilutive potential RSUs and PUs	521,977		715,850
Weighted-average shares—diluted	291,845,602		289,528,287
Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated:
Basic	$	0.15	$	0.16
Diluted	$	0.14	$	0.16
Antidilutive stock options, RSUs and PUs, excluded from the calculation	755,580		4,708,068