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Segment Information | 6 Months Ended
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Jun. 30, 2022
Segment Reporting [Abstract] |
Segment Information | SEGMENT INFORMATIONIn the second quarter of 2022, as a result of the realignment of our global managerial structure, we reassessed the composition of our reportable segments and note that (i) our Entertainment Services offerings are now managed as part of our Global Records and Information Management ("Global RIM") Business segment; (ii) certain commercial costs that were previously managed as part of Corporate and Other Business are now managed as part of our Global RIM Business segment; and (iii) our ALM services, which includes our legacy secure IT disposition business and our business acquired from ITRenew, are now managed as a separate operating segment that is included in Corporate and Other Business. Our reportable segments are described in more detail below, and p reviously reported segment information has been restated to reflect the changes described above. (1)Global RIM Business includes several distinct offerings: (i)Records Management, which stores physical records and provides healthcare information services, vital records services, courier operations, and the collection, handling and disposal of sensitive documents (collectively, "Records Management") for customers in 59 countries around the globe. (ii)Data Management, which provides 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)Global 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, conversion of documents to digital formats and digital storage of information. (iv)Secure Shredding, which includes the scheduled pick-up of office records that customers accumulate in specially designed secure containers we provide and is a natural extension of our hardcopy records management operations, completing the lifecycle of a record. Through a combination of shredding facilities and mobile shredding units consisting of custom built trucks, we are able to offer secure shredding services to our customers. (v)Entertainment Services, which includes entertainment and media services which help 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. (vi)Consumer Storage, which provides on-demand, valet storage for consumers ("Consumer Storage") in markets across North America through a strategic partnership that utilizes data analytics and machine learning to provide effective customer acquisition and a convenient and seamless consumer storage experience. (2)Global Data Center Business, which provides enterprise-class data center facilities and hyperscale-ready capacity to protect mission-critical assets and ensure the continued operation of our customers’ IT infrastructure, with secure, reliable and flexible data center options. (3) Corporate and Other Business consists primarily of our Fine Arts and ALM businesses and other corporate items. (i) Fine Arts provides technical expertise in the handling, installation and storing of art. (ii) ALM provides hyperscale and corporate IT infrastructure managers with services and solutions that enable the decommissioning and disposition or sale of IT hardware and component assets. ALM services are enabled by: secure logistics and chain of custody practices, environmentally-responsible asset processing and recycling, and data sanitization and asset refurbishment services that enable value recovery through asset remarketing. Our ALM services focus on protecting and eradicating customer data while maintaining strong, auditable and transparent chain of custody practices. Corporate and Other Business also includes costs related to executive and staff functions, including finance, human resources and IT, which benefit the enterprise as a whole. The operations associated with acquisitions completed during the first six months of 2022 have been incorporated as detailed above. An analysis of our business segment information and reconciliation to the accompanying Condensed Consolidated Financial Statements for the three and six months ended June 30, 2022 and 2021 is as follows:
| GLOBAL RIM BUSINESS |  | GLOBAL DATA CENTER BUSINESS |  |  |  | CORPORATE AND OTHER BUSINESS |  | TOTAL CONSOLIDATED
As of and for the Three Months Ended June 30, 2022 |  |  |  |  |  |  |  |  |
Total Revenues | $ | 1,070,476 |  |  | $ | 100,088 |  |  |  |  | $ | 118,970 |  |  | $ | 1,289,534 |
Adjusted EBITDA | 469,368 |  |  | 42,307 |  |  |  |  | (56,969) |  |  | 454,706 |
As of and for the Three Months Ended June 30, 2021 |  |  |  |  |  |  |  |  |
Total Revenues | $ | 996,324 |  |  | $ | 76,977 |  |  |  |  | $ | 46,455 |  |  | $ | 1,119,756 |
Adjusted EBITDA | 423,940 |  |  | 33,432 |  |  |  |  | (51,741) |  |  | 405,631 |
As of and for the Six Months Ended June 30, 2022 |  |  |  |  |  |  |  |  |
Total Revenues | $ | 2,119,367 |  |  | $ | 197,075 |  |  |  |  | $ | 221,138 |  |  | $ | 2,537,580 |
Adjusted EBITDA | 918,163 |  |  | 84,284 |  |  |  |  | (116,747) |  |  | 885,700 |
As of and for the Six Months Ended June 30, 2021 |  |  |  |  |  |  |  |  |
Total Revenues | $ | 1,973,242 |  |  | $ | 148,085 |  |  |  |  | $ | 80,469 |  |  | $ | 2,201,796 |
Adjusted EBITDA | 827,373 |  |  | 63,864 |  |  |  |  | (105,041) |  |  | 786,196 |
Adjusted EBITDA for each segment is defined as net income (loss) before interest expense, net, provision (benefit) for income taxes, depreciation and amortization (inclusive of our share of Adjusted EBITDA from our unconsolidated joint ventures), and excluding certain items we do not believe to be indicative of our core operating results, specifically:
EXCLUDED |
•Acquisition and Integration Costs •Restructuring Charges •(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate) | •Other (income) expense, net •Stock-based compensation expense
Internally, we use Adjusted EBITDA as the basis for evaluating the performance of, and allocating resources to, our operating segments. A reconciliation of Net Income (Loss) to Adjusted EBITDA on a consolidated basis for the three and six months ended June 30, 2022 and 2021 is as follows:
| THREE MONTHS ENDED JUNE 30, |  | SIX MONTHS ENDED JUNE 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Net Income (Loss) | $ | 201,858 |  |  | $ | 276,522 |  |  | $ | 243,565 |  |  | $ | 323,153 |
Add/(Deduct): |  |  |  |  |  |  |
Interest expense, net | 115,057 |  |  | 105,220 |  |  | 229,499 |  |  | 209,642 |
Provision (benefit) for income taxes | 18,083 |  |  | 110,416 |  |  | 28,163 |  |  | 125,056 |
Depreciation and amortization | 178,254 |  |  | 166,685 |  |  | 361,869 |  |  | 332,327 |
Acquisition and Integration Costs | 16,878 |  |  | 2,277 |  |  | 32,539 |  |  | 2,277 |
Restructuring Charges | — |  |  | 39,443 |  |  | — |  |  | 79,254 |
(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate) | (51,249) |  |  | (128,935) |  |  | (51,954) |  |  | (133,386) |
Other (income) expense, net, excluding our share of losses (gains) from our unconsolidated joint ventures | (46,103) |  |  | (189,605) |  |  | 7,412 |  |  | (187,484) |
Stock-based compensation expense | 20,256 |  |  | 22,536 |  |  | 31,597 |  |  | 33,269 |
Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures | 1,672 |  |  | 1,072 |  |  | 3,010 |  |  | 2,088 |
Adjusted EBITDA | $ | 454,706 |  |  | $ | 405,631 |  |  | $ | 885,700 |  |  | $ | 786,196 |
Information as to our revenues by product and service lines by segment for the three and six months ended June 30, 2022 and 2021 are as follows:
|  | THREE MONTHS ENDED JUNE 30, |  | SIX MONTHS ENDED JUNE 30,
|  | 2022 |  | 2021 |  | 2022 |  | 2021
Global RIM Business |  |  |  |  |  |  |  |
Records Management(1) |  | $ | 818,993 |  |  | $ | 765,818 |  |  | $ | 1,621,546 |  |  | $ | 1,517,941 |
Data Management(1) |  | 124,394 |  |  | 133,876 |  |  | 258,050 |  |  | 268,741 |
Information Destruction(1)(2) |  | 127,089 |  |  | 96,630 |  |  | 239,771 |  |  | 186,560 |
Data Center(1) |  | — |  |  | — |  |  | — |  |  | — |
Global Data Center Business |  |  |  |  |  |  |  |
Records Management(1) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Data Management(1) |  | — |  |  | — |  |  | — |  |  | — |
Information Destruction(1) |  | — |  |  | — |  |  | — |  |  | — |
Data Center(1) |  | 100,088 |  |  | 76,977 |  |  | 197,075 |  |  | 148,085 |
Corporate and Other Business |  |  |  |  |  |  |  |
Records Management(1) |  | $ | 36,141 |  |  | $ | 34,210 |  |  | $ | 68,039 |  |  | $ | 61,397 |
Data Management(1) |  | — |  |  | — |  |  | — |  |  | — |
Information Destruction(1)(3) |  | 82,829 |  |  | 12,245 |  |  | 153,099 |  |  | 19,072 |
Data Center(1) |  | — |  |  | — |  |  | — |  |  | — |
Total Consolidated |  |  |  |  |  |  |  |
Records Management(1) |  | $ | 855,134 |  |  | $ | 800,028 |  |  | $ | 1,689,585 |  |  | $ | 1,579,338 |
Data Management(1) |  | 124,394 |  |  | 133,876 |  |  | 258,050 |  |  | 268,741 |
Information Destruction(1)(2)(3) |  | 209,918 |  |  | 108,875 |  |  | 392,870 |  |  | 205,632 |
Data Center(1) |  | 100,088 |  |  | 76,977 |  |  | 197,075 |  |  | 148,085 |
(1)Each of these offerings has a component of revenue that is storage rental related and a component that is service revenues, except for information destruction, which does not have a storage rental component. (2)Includes secure shredding services. (3)Includes product revenue from ITRenew.

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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