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Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 10-Q

(Mark One)
☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2023

OR
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from to

Commission file number 1-13045
IRON MOUNTAIN INCORPORATED
(Exact Name of Registrant as Specified in Its Charter)

Delaware | 23-2588479
(State or other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.)

85 New Hampshire Avenue, Suite 150, Portsmouth, New Hampshire 03801
(Address of Principal Executive Offices, Including Zip Code)
(617) 535-4766
(Registrant's Telephone Number, Including Area Code)
Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class |  | Trading Symbol(s) |  | Name of each exchange on which registered
Common Stock, $.01 par value |  | IRM |  | NYSE

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer | ☒ | Accelerated filer | ☐
Non-accelerated filer | ☐ | Smaller reporting company | ☐
Emerging growth company | ☐ |  |

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of April 28, 2023, the registrant had 291,623,270 outstanding shares of common stock, $.01 par value.

Table of Contents
IRON MOUNTAIN INCORPORATED
2023 FORM 10-Q QUARTERLY REPORT
TABLE OF CONTENTS

PART I—FINANCIAL INFORMATION
| 1 | ITEM 1. | Unaudited Condensed Consolidated Financial Statements
|  | 2 | Condensed Consolidated Balance Sheets at March 31, 202 3 and December 31, 2022
|  | 3 | Condensed Consolidated Statements of Operations for the Three Months Ended March 3 1, 202 3 and 2022
|  | 4 | Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31, 2023 and 2022
|  | 5 | Condensed Consolidated Statements of Equity for the Three Months Ended March 31, 2023 and 2022
|  | 6 | Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 202 3 and 2022
|  | 7 | Notes to Condensed Consolidated Financial Statements
| 25 | ITEM 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations
| 44 | ITEM 4. | Controls and Procedures
PART II—OTHER INFORMATION
| 46 | ITEM 2. | Unregistered Sales of Equity Securities and Use of Proceeds
| 46 | ITEM 6. | Exhibits
| 47 | Signatures

Table of Contents
PART I. FINANCIAL INFORMATION
ITEM 1. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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Table of Contents
Part I. Financial Information

IRON MOUNTAIN INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) (UNAUDITED)

| MARCH 31, 2023 |  | DECEMBER 31, 2022
ASSETS |  |  |
Current Assets: |  |  |
Cash and cash equivalents | $ | 146,442 |  |  | $ | 141,797 |
Accounts receivable (less allowances of $61,039 and $54,143 as of March 31, 2023 and December 31, 2022, respectively) | 1,174,326 |  |  | 1,174,915 |
Prepaid expenses and other | 280,169 |  |  | 230,433 |
Total Current Assets | 1,600,937 |  |  | 1,547,145 |
Property, Plant and Equipment: |  |  |
Property, plant and equipment | 9,286,873 |  |  | 9,025,765 |
Less—Accumulated depreciation | (3,944,300) |  |  | (3,910,321) |
Property, Plant and Equipment, Net | 5,342,573 |  |  | 5,115,444 |
Other Assets, Net: |  |  |
Goodwill | 4,896,761 |  |  | 4,882,734 |
Customer and supplier relationships and other intangible assets | 1,380,316 |  |  | 1,423,145 |
Operating lease right-of-use assets | 2,666,951 |  |  | 2,583,704 |
Other | 578,171 |  |  | 588,342 |
Total Other Assets, Net | 9,522,199 |  |  | 9,477,925 |
Total Assets | $ | 16,465,709 |  |  | $ | 16,140,514 |
LIABILITIES AND EQUITY |  |  |
Current Liabilities: |  |  |
Current portion of long-term debt | $ | 101,608 |  |  | $ | 87,546 |
Accounts payable | 512,269 |  |  | 469,198 |
Accrued expenses and other current liabilities (includes current portion of operating lease liabilities) | 1,057,320 |  |  | 1,031,910 |
Deferred revenue | 335,393 |  |  | 328,910 |
Total Current Liabilities | 2,006,590 |  |  | 1,917,564 |
Long-term Debt, net of current portion | 10,862,188 |  |  | 10,481,449 |
Long-term Operating Lease Liabilities, net of current portion | 2,513,817 |  |  | 2,429,167 |
Other Long-term Liabilities | 170,391 |  |  | 317,376 |
Deferred Income Taxes | 271,504 |  |  | 263,005 |
Commitments and Contingencies |  |  |
Redeemable Noncontrolling Interests | 95,630 |  |  | 95,160 |
Equity: |  |  |
Preferred stock (par value $0.01; authorized 10,000,000 shares; none issued and outstanding) | — |  |  | — |
Common stock (par value $0.01; authorized 400,000,000 shares; issued and outstanding 291,584,999 and 290,830,296 shares as of March 31, 2023 and December 31, 2022, respectively) | 2,916 |  |  | 2,908 |
Additional paid-in capital | 4,459,265 |  |  | 4,468,035 |
(Distributions in excess of earnings) Earnings in excess of distributions | (3,510,949) |  |  | (3,392,272) |
Accumulated other comprehensive items, net | (405,768) |  |  | (442,003) |
Total Iron Mountain Incorporated Stockholders' Equity | 545,464 |  |  | 636,668 |
Noncontrolling Interests | 125 |  |  | 125 |
Total Equity | 545,589 |  |  | 636,793 |
Total Liabilities and Equity | $ | 16,465,709 |  |  | $ | 16,140,514 |

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Table of Contents
Part I. Financial Information

IRON MOUNTAIN INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)

| THREE MONTHS ENDED MARCH 31,
| 2023 |  | 2022
Revenues: |  |  |
Storage rental | $ | 810,089 |  |  | $ | 751,070 |
Service | 504,260 |  |  | 496,976 |
Total Revenues | 1,314,349 |  |  | 1,248,046 |
Operating Expenses: |  |  |
Cost of sales (excluding depreciation and amortization) | 571,626 |  |  | 546,622 |
Selling, general and administrative | 294,520 |  |  | 280,723 |
Depreciation and amortization | 182,094 |  |  | 183,615 |
Acquisition and Integration Costs | 1,595 |  |  | 15,661 |
Restructuring and other transformation | 36,913 |  |  | — |
(Gain) Loss on disposal/write-down of property, plant and equipment, net | (13,061) |  |  | (705) |
Total Operating Expenses | 1,073,687 |  |  | 1,025,916 |
Operating Income (Loss) | 240,662 |  |  | 222,130 |
Interest Expense, Net (includes Interest Income of $2,907 and $1,648 for the three months ended March 31, 2023 and 2022, respectively) | 137,169 |  |  | 114,442 |
Other Expense (Income), Net | 21,200 |  |  | 55,901 |
Net Income (Loss) Before Provision (Benefit) for Income Taxes | 82,293 |  |  | 51,787 |
Provision (Benefit) for Income Taxes | 16,758 |  |  | 10,080 |
Net Income (Loss) | 65,535 |  |  | 41,707 |
Less: Net Income (Loss) Attributable to Noncontrolling Interests | 940 |  |  | (592) |
Net Income (Loss) Attributable to Iron Mountain Incorporated | $ | 64,595 |  |  | $ | 42,299 |
Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated: |  |  |
Basic | $ | 0.22 |  |  | $ | 0.15 |
Diluted | $ | 0.22 |  |  | $ | 0.14 |
Weighted Average Common Shares Outstanding—Basic | 291,442 |  |  | 290,328 |
Weighted Average Common Shares Outstanding—Diluted | 293,049 |  |  | 291,846 |

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Table of Contents
Part I. Financial Information

IRON MOUNTAIN INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(IN THOUSANDS) (UNAUDITED)

| THREE MONTHS ENDED MARCH 31,
| 2023 |  | 2022
Net Income (Loss) | $ | 65,535 |  |  | $ | 41,707 |
Other Comprehensive Income (Loss): |  |  |
Foreign Currency Translation Adjustment | 40,226 |  |  | 27,453 |
Change in Fair Value of Derivative Instruments | (3,442) |  |  | 16,766 |
Total Other Comprehensive Income (Loss): | 36,784 |  |  | 44,219 |
Comprehensive Income (Loss) | 102,319 |  |  | 85,926 |
Comprehensive Income (Loss) Attributable to Noncontrolling Interests | 1,489 |  |  | (362) |
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated | $ | 100,830 |  |  | $ | 86,288 |

The accompanying notes are an integral part of these condensed consolidated financial statements

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Table of Contents
Part I. Financial Information

IRON MOUNTAIN INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(IN THOUSANDS, EXCEPT SHARE DATA) (UNAUDITED)

THREE MONTHS ENDED MARCH 31, 2023
|  |  | IRON MOUNTAIN INCORPORATED STOCKHOLDERS' EQUITY |  |  |  |  |
|  |  | COMMON STOCK |  | ADDITIONAL PAID-IN CAPITAL |  | (DISTRIBUTIONS IN EXCESS OF EARNINGS) EARNINGS IN EXCESS OF DISTRIBUTIONS |  | ACCUMULATED OTHER COMPREHENSIVE ITEMS, NET |  | NONCONTROLLING INTERESTS |  |  | REDEEMABLE NONCONTROLLING INTERESTS
| TOTAL |  | SHARES |  | AMOUNTS |  |  |
Balance, December 31, 2022 | $ | 636,793 |  |  | 290,830,296 |  |  | $ | 2,908 |  |  | $ | 4,468,035 |  |  | $ | (3,392,272) |  |  | $ | (442,003) |  |  | $ | 125 |  |  |  | $ | 95,160 |
Issuance and net settlement of shares under employee stock purchase plan and option plans and stock-based compensation | (8,762) |  |  | 754,703 |  |  | 8 |  |  | (8,770) |  |  | — |  |  | — |  |  | — |  |  |  | — |
Parent cash dividends declared | (183,272) |  |  | — |  |  | — |  |  | — |  |  | (183,272) |  |  | — |  |  | — |  |  |  | — |
Other comprehensive income (loss) | 36,235 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 36,235 |  |  | — |  |  |  | 549 |
Net income (loss) | 64,595 |  |  | — |  |  | — |  |  | — |  |  | 64,595 |  |  | — |  |  | — |  |  |  | 940 |
Noncontrolling interests dividends | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  | (1,019) |
Balance, March 31, 2023 | $ | 545,589 |  |  | 291,584,999 |  |  | $ | 2,916 |  |  | $ | 4,459,265 |  |  | $ | (3,510,949) |  |  | $ | (405,768) |  |  | $ | 125 |  |  |  | $ | 95,630 |
THREE MONTHS ENDED MARCH 31, 2022
|  |  | IRON MOUNTAIN INCORPORATED STOCKHOLDERS' EQUITY |  |  |  |  |
|  |  | COMMON STOCK |  | ADDITIONAL PAID-IN CAPITAL |  | (DISTRIBUTIONS IN EXCESS OF EARNINGS) EARNINGS IN EXCESS OF DISTRIBUTIONS |  | ACCUMULATED OTHER COMPREHENSIVE ITEMS, NET |  | NONCONTROLLING INTERESTS |  |  | REDEEMABLE NONCONTROLLING INTERESTS
| TOTAL |  | SHARES |  | AMOUNTS |  |  |  |  |
Balance, December 31, 2021 | $ | 857,068 |  |  | 289,757,061 |  |  | $ | 2,898 |  |  | $ | 4,412,553 |  |  | $ | (3,221,152) |  |  | $ | (338,347) |  |  | $ | 1,116 |  |  |  | $ | 72,411 |
Issuance and net settlement of shares under employee stock purchase plan and option plans and stock-based compensation | (1,502) |  |  | 793,379 |  |  | 8 |  |  | (1,510) |  |  | — |  |  | — |  |  | — |  |  |  | — |
Changes in equity related to noncontrolling interests | (1,992) |  |  | — |  |  | — |  |  | (1,992) |  |  | — |  |  | — |  |  | — |  |  |  | 1,992 |
Parent cash dividends declared | (181,023) |  |  | — |  |  | — |  |  | — |  |  | (181,023) |  |  | — |  |  | — |  |  |  | — |
Other comprehensive income (loss) | 43,921 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 43,989 |  |  | (68) |  |  |  | 298 |
Net income (loss) | 42,299 |  |  | — |  |  | — |  |  | — |  |  | 42,299 |  |  | — |  |  | — |  |  |  | (592) |
Noncontrolling interests dividends | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  | (681) |
Balance, March 31, 2022 | $ | 758,771 |  |  | 290,550,440 |  |  | $ | 2,906 |  |  | $ | 4,409,051 |  |  | $ | (3,359,876) |  |  | $ | (294,358) |  |  | $ | 1,048 |  |  |  | $ | 73,428 |

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Table of Contents
Part I. Financial Information

IRON MOUNTAIN INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS) (UNAUDITED)

| THREE MONTHS ENDED MARCH 31,
| 2023 |  | 2022
Cash Flows from Operating Activities: |  |  |
Net income (loss) | $ | 65,535 |  |  | $ | 41,707 |
Adjustments to reconcile net income (loss) to cash flows from operating activities: |  |  |
Depreciation | 120,066 |  |  | 120,393 |
Amortization (includes amortization of deferred financing costs and discounts of $4,332 and $4,389 for the three months ended March 31, 2023 and 2022, respectively) | 66,360 |  |  | 67,611 |
Revenue reduction associated with amortization of customer inducements and above- and below-market leases | 1,760 |  |  | 1,860 |
Stock-based compensation expense | 12,509 |  |  | 11,341 |
Provision (benefit) for deferred income taxes | 4,183 |  |  | (10,142) |
Loss on early extinguishment of debt | — |  |  | 671 |
(Gain) loss on disposal/write-down of property, plant and equipment, net | (13,061) |  |  | (705) |
Loss (gain) on divestments and deconsolidations | — |  |  | 105,825 |
Gain associated with Clutter Transaction | — |  |  | (35,821) |
Foreign currency transactions and other, net | 34,435 |  |  | (7,219) |
(Increase) decrease in assets | (33,530) |  |  | (105,321) |
(Decrease) increase in liabilities | (129,449) |  |  | (135,694) |
Cash Flows from Operating Activities | 128,808 |  |  | 54,506 |
Cash Flows from Investing Activities: |  |  |
Capital expenditures | (265,906) |  |  | (161,050) |
Cash paid for acquisitions, net of cash acquired | (1,094) |  |  | (717,907) |
Customer inducements | (1,357) |  |  | (1,913) |
Contract fulfillment costs | (24,014) |  |  | (14,237) |
Investments in joint ventures and other investments | (15,830) |  |  | — |
Proceeds from sales of property and equipment and other, net | 35,658 |  |  | 5,353 |
Cash Flows from Investing Activities | (272,543) |  |  | (889,754) |
Cash Flows from Financing Activities: |  |  |
Repayment of revolving credit facility, term loan facilities and other debt | (4,649,926) |  |  | (2,278,884) |
Proceeds from revolving credit facility, term loan facilities and other debt | 5,008,631 |  |  | 3,254,197 |
Debt repayment and equity distribution to noncontrolling interests | (1,019) |  |  | (681) |
Parent cash dividends | (186,514) |  |  | (184,361) |
Net (payments) proceeds associated with employee stock-based awards | (21,271) |  |  | (12,843) |
Other, net | — |  |  | (5,875) |
Cash Flows from Financing Activities | 149,901 |  |  | 771,553 |
Effect of Exchange Rates on Cash and Cash Equivalents | (1,521) |  |  | 3,527 |
Increase (decrease) in Cash and Cash Equivalents | 4,645 |  |  | (60,168) |
Cash and Cash Equivalents, Beginning of Period | 141,797 |  |  | 255,828 |
Cash and Cash Equivalents, End of Period | $ | 146,442 |  |  | $ | 195,660 |
Supplemental Information: |  |  |
Cash Paid for Interest | $ | 204,902 |  |  | $ | 179,079 |
Cash Paid for Income Taxes, Net | $ | 18,629 |  |  | $ | 19,277 |
Non-Cash Investing and Financing Activities: |  |  |
Financing Leases | $ | 20,194 |  |  | $ | 5,190 |
Accrued Capital Expenditures | $ | 207,425 |  |  | $ | 78,466 |
Deferred Purchase Obligations | $ | 197,222 |  |  | $ | 276,300 |
Dividends Payable | $ | 191,030 |  |  | $ | 187,220 |

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Table of Contents
Part I. Financial Information

IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share data) (Unaudited)
1. GENERAL
The unaudited condensed consolidated financial statements of Iron Mountain Incorporated, a Delaware corporation, and its subsidiaries ("we" or "us"), have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the "SEC"). Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to those rules and regulations, but we believe that the disclosures included herein are adequate to make the information presented not misleading. Certain prior year financial statement amounts have been reclassified to conform to the current year presentation. The interim condensed consolidated financial statements are presented herein and, in the opinion of management, reflect all adjustments of a normal recurring nature necessary for a fair presentation. Interim results are not necessarily indicative of results for a full year.
The Condensed Consolidated Financial Statements and Notes thereto, which are included herein, should be read in conjunction with the Consolidated Financial Statements and Notes thereto for the year ended December 31, 2022 included in our Annual Report on Form 10-K filed with the SEC on February 23, 2023 (our "Annual Report").
In September 2022, we announced a global program designed to accelerate the growth of our business ("Project Matterhorn"). See Note 11.
We have been organized and have operated as a real estate investment trust for United States federal income tax purposes ("REIT") beginning with our taxable year ended December 31, 2014.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. CASH AND CASH EQUIVALENTS
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.
B. ACCOUNTS RECEIVABLE
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, 2023 is as follows:

|  | Balance as of December 31, 2022 |  | $ | 54,143 |
|  | Credit memos charged to revenue |  | 23,392 |
|  | Allowance for bad debts charged to expense |  | 10,242 |
|  | Deductions and other(1) |  | (26,738) |
|  | Balance as of March 31, 2023 |  | $ | 61,039 |

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

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Table of Contents
Part I. Financial Information

IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. LEASES
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, 2023 and December 31, 2022 are as follows:

DESCRIPTION |  | MARCH 31, 2023 |  | DECEMBER 31, 2022
Assets: |  |  |  |
Operating lease right-of-use assets |  | $ | 2,666,951 |  |  | $ | 2,583,704 |
Financing lease right-of-use assets, net of accumulated depreciation(1) |  | 250,216 |  |  | 251,690 |
Liabilities: |  |  |  |
Current |  |  |  |
Operating lease liabilities |  | $ | 293,795 |  |  | $ | 288,738 |
Financing lease liabilities(1) |  | 47,516 |  |  | 43,857 |
Long-term |  |  |  |
Operating lease liabilities |  | $ | 2,513,817 |  |  | $ | 2,429,167 |
Financing lease liabilities(1) |  | 294,517 |  |  | 289,048 |

(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.
The components of the lease expense for the three months ended March 31, 2023 and 2022 are as follows:

|  | THREE MONTHS ENDED MARCH 31,
DESCRIPTION |  | 2023 |  | 2022
Operating lease cost(1) |  | $ | 155,873 |  |  | $ | 143,530 |
Financing lease cost: |  |  |  |
Depreciation of financing lease right-of-use assets |  | $ | 10,008 |  |  | $ | 11,454 |
Interest expense for financing lease liabilities |  | 4,341 |  |  | 4,678 |

(1)Operating lease cost, the majority of which is included in Cost of sales, includes variable lease costs of $31,580 and $30,508 for the three months ended March 31, 2023 and 2022, respectively.
Other information: Supplemental cash flow information relating to our leases for the three months ended March 31, 2023 and 2022 is as follows:

|  | THREE MONTHS ENDED MARCH 31,
CASH PAID FOR AMOUNTS INCLUDED IN MEASUREMENT OF LEASE LIABILITIES: |  | 2023 |  | 2022
Operating cash flows used in operating leases |  | $ | 108,723 |  |  | $ | 101,605 |
Operating cash flows used in financing leases (interest) |  | 4,341 |  |  | 4,678 |
Financing cash flows used in financing leases |  | 11,714 |  |  | 10,362 |
NON-CASH ITEMS: |  |  |  |
Operating lease modifications and reassessments |  | $ | 18,163 |  |  | $ | 23,767 |
New operating leases (including acquisitions and sale-leaseback transactions) |  | 113,853 |  |  | 125,902 |

In addition to the leases signed but not yet commenced that were disclosed in Note 2.j. to Notes to Consolidated Financial Statements included in our Annual Report, we entered into an operating lease in March 2023 that is expected to commence in July 2024, with an initial lease term of 25 years. The total undiscounted minimum lease payments for this lease are approximately $170,100.

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Table of Contents
Part I. Financial Information

IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. GOODWILL
Our reporting units as of December 31, 2022 are described in detail in Note 2.l. to Notes to Consolidated Financial Statements included in our Annual Report.
The changes in the carrying value of goodwill attributable to each reportable segment for the three months ended March 31, 2023 are as follows:

| GLOBAL RIM BUSINESS |  | GLOBAL DATA CENTER BUSINESS |  |  |  | CORPORATE AND OTHER |  | TOTAL CONSOLIDATED
Goodwill balance, net of accumulated amortization as of December 31, 2022 | $ | 3,852,946 |  |  | $ | 418,502 |  |  |  |  | $ | 611,286 |  |  | $ | 4,882,734 |
Fair value and other adjustments | 71 |  |  | — |  |  |  |  | 2,333 |  |  | 2,404 |
Currency effects | 9,239 |  |  | 2,064 |  |  |  |  | 320 |  |  | 11,623 |
Goodwill balance, net of accumulated amortization as of March 31, 2023 | $ | 3,862,256 |  |  | $ | 420,566 |  |  |  |  | $ | 613,939 |  |  | $ | 4,896,761 |
Accumulated goodwill impairment balance as of March 31, 2023 | $ | 132,409 |  |  | $ | — |  |  |  |  | $ | 26,011 |  |  | $ | 158,420 |

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Table of Contents
Part I. Financial Information

IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. FAIR VALUE MEASUREMENTS
The assets and liabilities carried at fair value measured on a recurring basis as of March 31, 2023 and December 31, 2022 are as follows:

|  |  |  | FAIR VALUE MEASUREMENTS AT MARCH 31, 2023 USING
DESCRIPTION |  | TOTAL CARRYING VALUE AT MARCH 31, 2023 |  | QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1) |  | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) |  | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Money Market Funds |  | $ | 9,786 |  |  | $ | — |  |  | $ | 9,786 |  |  | $ | — |
Time Deposits |  | 1,721 |  |  | — |  |  | 1,721 |  |  | — |
Trading Securities |  | 9,380 |  |  | 9,347 |  |  | 33 |  |  | — |
Derivative Assets |  | 42,105 |  |  | — |  |  | 42,105 |  |  | — |
Derivative Liabilities |  | 3,443 |  |  | — |  |  | 3,443 |  |  | — |
Deferred Purchase Obligations(1) |  | 197,222 |  |  | — |  |  | — |  |  | 197,222 |

|  |  |  | FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2022 USING
DESCRIPTION |  | TOTAL CARRYING VALUE AT DECEMBER 31, 2022 |  | QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1) |  | SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) |  | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
Money Market Funds |  | $ | 11,311 |  |  | $ | — |  |  | $ | 11,311 |  |  | $ | — |
Time Deposits |  | 1,102 |  |  | — |  |  | 1,102 |  |  | — |
Trading Securities |  | 9,462 |  |  | 9,426 |  |  | 36 |  |  | — |
Derivative Assets |  | 51,396 |  |  | — |  |  | 51,396 |  |  | — |
Derivative Liabilities |  | 489 |  |  | — |  |  | 489 |  |  | — |
Deferred Purchase Obligations(1) |  | 193,033 |  |  | — |  |  | — |  |  | 193,033 |

(1)Primarily relates to the fair value of the Deferred Purchase Obligation (as defined in Note 3 to Notes to Consolidated Financial Statements included in our Annual Report) associated with the ITRenew Transaction (as defined below in Note 3), which was determined utilizing a Monte-Carlo model and takes into account our forecasted projections as it relates to the underlying performance of the business. The Monte-Carlo simulation model incorporates assumptions as to expected gross profits over the applicable achievement period, including adjustments for the volatility of timing and amount of the associated revenue and costs, as well as discount rates that account for the risk of the underlying arrangement and overall market risks. Any material change to these assumptions may result in a significantly higher or lower fair value of the Deferred Purchase Obligation. The change in value of the Deferred Purchase Obligation during the three months ended March 31, 2023 was driven by the accretion of the obligation to present value.
There were no material items that were measured at fair value on a non-recurring basis at March 31, 2023 and December 31, 2022 other than those disclosed in Note 2.p. to Notes to Consolidated Financial Statements included in our Annual Report.

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Table of Contents
Part I. Financial Information

IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
F. ACCUMULATED OTHER COMPREHENSIVE ITEMS, NET
The changes in Accumulated other comprehensive items, net for the three months ended March 31, 2023 and 2022 are as follows:

| THREE MONTHS ENDED MARCH 31, 2023 |  | THREE MONTHS ENDED MARCH 31, 2022 |
| 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 | $ | (454,509) |  |  | $ | 12,506 |  |  | $ | (442,003) |  |  | $ | (341,024) |  |  | $ | 2,677 |  |  | $ | (338,347) |  |  |  |  |  |
Other comprehensive income (loss): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency translation and other adjustments | 39,677 |  |  | — |  |  | 39,677 |  |  | 27,223 |  |  | — |  |  | 27,223 |  |  |  |  |  |
Change in fair value of derivative instruments | — |  |  | (3,442) |  |  | (3,442) |  |  | — |  |  | 16,766 |  |  | 16,766 |  |  |  |  |  |
Total other comprehensive income (loss) | 39,677 |  |  | (3,442) |  |  | 36,235 |  |  | 27,223 |  |  | 16,766 |  |  | 43,989 |  |  |  |  |  |
End of Period | $ | (414,832) |  |  | $ | 9,064 |  |  | $ | (405,768) |  |  | $ | (313,801) |  |  | $ | 19,443 |  |  | $ | (294,358) |  |  |  |  |  |

G. REVENUES
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, 2023 and December 31, 2022 are as follows:

|  | MARCH 31, 2023 |  | DECEMBER 31, 2022
|  | GROSS CARRYING AMOUNT |  | ACCUMULATED AMORTIZATION |  | NET CARRYING AMOUNT |  | GROSS CARRYING AMOUNT |  | ACCUMULATED AMORTIZATION |  | NET CARRYING AMOUNT
Intake Costs asset |  | $ | 71,426 |  |  | $ | (45,700) |  |  | $ | 25,726 |  |  | $ | 68,345 |  |  | $ | (42,132) |  |  | $ | 26,213 |
Commissions asset |  | 142,763 |  |  | (63,244) |  |  | 79,519 |  |  | 133,145 |  |  | (58,949) |  |  | 74,196 |

Deferred revenue liabilities are reflected in our Condensed Consolidated Balance Sheets as follows:

DESCRIPTION |  | LOCATION IN BALANCE SHEET |  | MARCH 31, 2023 |  | DECEMBER 31, 2022
Deferred revenue - Current |  | Deferred revenue |  | $ | 335,393 |  |  | $ | 328,910 |
Deferred revenue - Long-term |  | Other Long-term Liabilities |  | 29,482 |  |  | 32,960 |

DATA CENTER LESSOR CONSIDERATIONS
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, 2023 and 2022 is as follows:

| THREE MONTHS ENDED MARCH 31,
| 2023 |  | 2022
Storage rental revenue(1) | $ | 107,435 |  |  | $ | 87,451 |

(1)Revenue associated with power and connectivity included within storage rental revenue was $40,672 and $28,318 for the three months ended March 31, 2023 and 2022, respectively.

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Table of Contents
Part I. Financial Information

IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
H. STOCK-BASED COMPENSATION
Our stock-based compensation expense includes the cost of stock options, restricted stock units ("RSUs") and performance units ("PUs") (together, the "Employee Stock-Based Awards").
STOCK-BASED COMPENSATION EXPENSE
Stock-based compensation expense for the Employee Stock-Based Awards for the three months ended March 31, 2023 and 2022 is as follows:

| THREE MONTHS ENDED MARCH 31, |  |
| 2023 |  | 2022 |  |  |  |
Stock-based compensation expense | $ | 12,509 |  |  | $ | 11,341 |  |  |  |  |

As of March 31, 2023, unrecognized compensation cost related to the unvested portion of our Employee Stock-Based Awards is $115,329.
I. ACQUISITION AND INTEGRATION COSTS
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 and system integration costs (collectively, "Acquisition and Integration Costs"). Total Acquisition and Integration Costs were $1,595 and $15,661 for the three months ended March 31, 2023 and 2022, respectively.
J. (GAIN) LOSS ON DISPOSAL/WRITE-DOWN OF PROPERTY, PLANT AND EQUIPMENT, NET
(Gain) loss on disposal/write-down of property, plant and equipment, net for the three months ended March 31, 2023 and 2022 is as follows:

| THREE MONTHS ENDED MARCH 31,
| 2023(1) |  | 2022
(Gain) Loss on disposal/write-down of property, plant and equipment, net | $ | (13,061) |  |  | $ | (705) |

(1) The gains for the three months ended March 31, 2023 primarily consist of a gain of approximately $18,500 associated with a sale-leaseback transaction of a facility in Singapore, as part of our program to monetize a small portion of our industrial assets through sale and sale-leaseback transactions. The terms for this lease are consistent with the terms of our lease portfolio, which are disclosed in detail in Note 2.j. to Notes to Consolidated Financial Statements included in our Annual Report.

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Table of Contents
Part I. Financial Information

IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
K. OTHER EXPENSE (INCOME), NET
Other expense (income), net for the three months ended March 31, 2023 and 2022 consists of the following:

|  | THREE MONTHS ENDED MARCH 31,
DESCRIPTION |  | 2023 |  | 2022
Foreign currency transaction losses (gains), net |  | $ | 14,424 |  |  | $ | (13,201) |
Debt extinguishment expense |  | — |  |  | 671 |
Other, net(1) |  | 6,776 |  |  | 68,431 |
Other Expense (Income), Net |  | $ | 21,200 |  |  | $ | 55,901 |

(1)Other, net for the three months ended March 31, 2022 consists primarily of (i) a loss of approximately $105,800 associated with the OSG Deconsolidation (as defined in Note 4 to Notes to Consolidated Financial Statements included in our Annual Report), partially offset by (ii) a gain of approximately $35,800 associated with the Clutter Transaction (as defined in Note 5 to Notes to Consolidated Financial Statements included in our Annual Report).
L. INCOME TAXES
We provide for income taxes during interim periods based on our estimate of the effective tax rate for the year. Our effective tax rates for the three months ended March 31, 2023 and 2022 are as follows:

| THREE MONTHS ENDED MARCH 31,
| 2023(1) |  | 2022(2)
Effective Tax Rate | 20.4 | % |  | 19.5 | %

(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, 2023 were the benefits derived from the dividends paid deduction and the differences in the tax rates to 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, 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 of approximately $9,900 as a result of our acquisition of Intercept Parent, Inc. ("ITRenew").
M. INCOME (LOSS) PER SHARE—BASIC AND DILUTED
The calculation of basic and diluted income (loss) per share for the three months ended March 31, 2023 and 2022 are as follows:

| THREE MONTHS ENDED MARCH 31,
| 2023 |  | 2022
Net Income (Loss) | $ | 65,535 |  |  | $ | 41,707 |
Less: Net Income (Loss) Attributable to Noncontrolling Interests | 940 |  |  | (592) |
Net Income (Loss) Attributable to Iron Mountain Incorporated (utilized in numerator of Earnings Per Share calculation) | $ | 64,595 |  |  | $ | 42,299 |
Weighted-average shares—basic | 291,442,000 |  |  | 290,328,000 |
Effect of dilutive potential stock options | 1,216,000 |  |  | 995,625 |
Effect of dilutive potential RSUs and PUs | 391,000 |  |  | 521,977 |
Weighted-average shares—diluted | 293,049,000 |  |  | 291,845,602 |
Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated: |  |  |
Basic | $ | 0.22 |  |  | $ | 0.15 |
Diluted | $ | 0.22 |  |  | $ | 0.14 |
Antidilutive stock options, RSUs and PUs, excluded from the calculation | 145,730 |  |  | 755,580 |

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Table of Contents
Part I. Financial Information

IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
N. RECENT ACCOUNTING PRONOUNCEMENTS
In December 2021, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") No. 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ("ASU 2021-08"). ASU 2021-08 requires that an entity recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers, and for the related revenue contracts in accordance with ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as if it had originated the contracts. We adopted ASU 2021-08 on January 1, 2023 on a prospective basis, and there was no material impact on our condensed consolidated financial statements.

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Table of Contents
Part I. Financial Information

IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
3. ACQUISITIONS
ITRENEW PRO FORMA FINANCIAL INFORMATION
On January 25, 2022, in order to expand our asset lifecycle management operations, we acquired an approximately 80% interest in ITRenew at an agreed upon purchase price of $725,000, subject to certain working capital adjustments at, and subsequent to, the closing (the "ITRenew Transaction"). The unaudited consolidated pro forma financial information (the "Pro Forma Financial Information") below summarizes the combined results of Iron Mountain and ITRenew on a pro forma basis as if the ITRenew Transaction had occurred on January 1, 2021. The Pro Forma Financial Information is presented for informational purposes and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place on January 1, 2021. The Pro Forma Financial Information, for the periods presented, includes purchase accounting adjustments (including amortization of acquired customer and supplier intangible assets and depreciation of acquired property, plant and equipment) and related tax effects. We and ITRenew collectively incurred $59,370 of operating expenditures to complete the ITRenew Transaction (including advisory and professional fees). These operating expenditures have been reflected within the results of operations in the Pro Forma Financial Information as if they were incurred on January 1, 2021.

| THREE MONTHS ENDED MARCH 31, 2022 |  |
Total Revenues | $ | 1,266,020 |  |  |  |  |  |  |
Income from Continuing Operations | $ | 41,838 |  |  |  |  |  |  |

In addition to our acquisition of ITRenew, we completed certain other acquisitions in 2022. The Pro Forma Financial Information does not reflect these acquisitions due to the insignificant impact of these acquisitions on our consolidated results of operations.
4. INVESTMENTS
In April 2021, we closed on an agreement to form a joint venture (the "Web Werks JV") with the shareholders of Web Werks India Private Limited ("Web Werks"), a colocation data center provider in India. Through December 31, 2022, we made two investments totaling approximately 7,500,000 Indian rupees (or approximately $96,200, based upon the exchange rates between the United States dollar and Indian rupee on the closing date of each investment) in exchange for a noncontrolling interest in the form of convertible preference shares in the Web Werks JV. Under the terms of the original Web Werks JV shareholder agreement, we were required to make an additional investment of 3,750,000 Indian rupees by May 2023. In April 2023, the original Web Werks JV shareholder agreement was amended to extend the period by which the investment is required to be made to May 2024.
The following joint ventures are accounted for as equity method investments and are presented as a component of Other within Other assets, net in our Condensed Consolidated Balance Sheets. The carrying values and equity interests in our joint ventures at March 31, 2023 and December 31, 2022 are as follows:

|  | MARCH 31, 2023 |  | DECEMBER 31, 2022
|  | CARRYING VALUE |  | EQUITY INTEREST |  | CARRYING VALUE |  | EQUITY INTEREST
Web Werks JV |  | $ | 98,637 |  |  | 53.58 | % |  | $ | 98,278 |  |  | 53.58 | %
Joint venture with AGC Equity Partners (the "Frankfurt JV") |  | 36,579 |  |  | 20.00 | % |  | 37,194 |  |  | 20.00 | %
Joint venture with Clutter, Inc. (the "Clutter JV") |  | 50,712 |  |  | 26.73 | % |  | 54,172 |  |  | 26.73 | %

Additionally, we have a loan receivable with the Frankfurt JV of approximately $22,800, which is included as a component of Other within Other assets, net within our Condensed Consolidated Balance Sheet at March 31, 2023.

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Table of Contents
Part I. Financial Information

IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
5. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Derivative instruments we are party to include: (i) interest rate swap agreements (which are designated as cash flow hedges) and (ii) cross-currency swap agreements (which are designated as net investment hedges).
INTEREST RATE SWAP AGREEMENTS DESIGNATED AS CASH FLOW HEDGES
In November 2022, we entered into a forward-starting interest rate swap agreement to limit our exposure to changes in interest rates on future borrowings under our Virginia Credit Agreement (as defined in Note 7 to Notes to Consolidated Financial Statements included in our Annual Report). The forward-starting interest rate swap agreement commences in July 2023 and expires in October 2025. As of both March 31, 2023 and December 31, 2022, we have $4,800 in notional value outstanding on this forward-starting interest rate swap agreement.
In July 2019, we entered into forward-starting interest rate swap agreements to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness. These forward-starting interest rate swap agreements commenced in March 2022. As of both March 31, 2023 and December 31, 2022, we have $350,000 in notional value outstanding on these interest rate swap agreements, which expire in March 2024.
We have designated each of the interest rate swap agreements described above as cash flow hedges. These interest rate swap agreements are marked to market at the end of each reporting period, representing the fair values of the interest rate swap agreements, and any changes in fair value are recognized as a component of Accumulated other comprehensive items, net. Unrealized gains are recognized as assets, while unrealized losses are recognized as liabilities.
CROSS-CURRENCY SWAP AGREEMENTS DESIGNATED AS A HEDGE OF NET INVESTMENT
We utilize cross-currency interest rate swaps to hedge the variability of exchange rate impacts between the United States dollar and the Euro. As of both March 31, 2023 and December 31, 2022, we have approximately $469,200 in notional value outstanding on cross-currency interest rate swaps with maturity dates ranging from August 2023 through February 2026.
We have designated these cross-currency swap agreements as hedges of net investments in certain of our Euro denominated subsidiaries and they require an exchange of the notional amounts at maturity. These cross-currency swap agreements are marked to market at the end of each reporting period, representing the fair values of the cross-currency swap agreements, and any changes in fair value are recognized as a component of Accumulated other comprehensive items, net. Unrealized gains are recognized as assets while unrealized losses are recognized as liabilities. The excluded component of our cross-currency swap agreements is recorded in Accumulated other comprehensive items, net and amortized to interest expense on a straight-line basis.
The fair value of derivative instruments recognized in our Condensed Consolidated Balance Sheets at March 31, 2023 and December 31, 2022, by derivative instrument, are as follows:

|  | MARCH 31, 2023 |  | DECEMBER 31, 2022
DERIVATIVE INSTRUMENTS(1) |  | Assets |  | Liabilities |  | Assets |  | Liabilities
Cash Flow Hedges(2) |  |  |  |  |  |  |  |
Interest rate swap agreements |  | $ | 10,215 |  |  | $ | 1,151 |  |  | $ | 12,995 |  |  | $ | 489 |
Net Investment Hedges(3) |  |  |  |  |  |  |  |
Cross-currency swap agreements |  | 31,890 |  |  | 2,292 |  |  | 38,401 |  |  | — |

(1)Our derivative assets are included as a component of (i) Prepaid expenses and other or (ii) Other within Other assets, net and our derivative liabilities are included as a component of (i) Accrued expenses and other current liabilities or (ii) Other long-term liabilities in our Condensed Consolidated Balance Sheets. As of March 31, 2023, $11,538 is included within Prepaid expenses and other, $30,567 is included within Other assets, $2,292 is included within Accrued expense and other current liabilities and $1,151 is included within Other long-term liabilities. As of December 31, 2022, $2,606 is included within Prepaid expenses and other, $48,790 is included within Other assets, and $489 is included within Other long-term liabilities.
(2)As of March 31, 2023, cumulative net gains of $9,064 are recorded within Accumulated other comprehensive items, net associated with these interest rate swap agreements.
(3)As of March 31, 2023, cumulative net gains of $29,598 are recorded within Accumulated other comprehensive items, net associated with these cross-currency swap agreements. These cumulative net gains are offset by $14,934 related to the excluded component of our cross-currency swap agreements.

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Table of Contents
Part I. Financial Information

IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
5. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (CONTINUED)
Unrealized (losses) gains recognized in Accumulated other comprehensive income during the three months ended March 31, 2023 and 2022, by derivative instrument, are as follows:

|  | THREE MONTHS ENDED MARCH 31,
DERIVATIVE INSTRUMENTS |  | 2023 |  | 2022
Cash Flow Hedges |  |  |  |
Interest rate swap agreements |  | $ | (3,442) |  |  | $ | 11,470 |
Net Investment Hedges |  |  |  |
Cross-currency swap agreements |  | (8,803) |  |  | 5,296 |
Cross-currency swap agreements (excluded component) |  | 5,834 |  |  | — |

(Losses) gains recognized in Net income during the three months ended March 31, 2023 and 2022, by derivative instrument, are as follows:

|  |  | THREE MONTHS ENDED MARCH 31,
DERIVATIVE INSTRUMENTS | Location of (loss) gain |  | 2023 |  | 2022
Net Investment Hedges |  |  |  |  |
Cross-currency swap agreements (excluded component) | Interest expense |  | $ | (5,834) |  |  | $ | — |

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Table of Contents
Part I. Financial Information

IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
6. DEBT
Long-term debt is as follows:

|  | MARCH 31, 2023 |  |  | DECEMBER 31, 2022
|  | DEBT (INCLUSIVE OF DISCOUNT) |  | UNAMORTIZED DEFERRED FINANCING COSTS |  | CARRYING AMOUNT |  | FAIR VALUE |  |  | DEBT (INCLUSIVE OF DISCOUNT) |  | UNAMORTIZED DEFERRED FINANCING COSTS |  | CARRYING AMOUNT |  | FAIR VALUE
Revolving Credit Facility(1) |  | $ | 1,439,000 |  |  | $ | (5,687) |  |  | $ | 1,433,313 |  |  | $ | 1,439,000 |  |  |  | $ | 1,072,200 |  |  | $ | (6,790) |  |  | $ | 1,065,410 |  |  | $ | 1,072,200 |
Term Loan A(1) |  | 237,500 |  |  | — |  |  | 237,500 |  |  | 237,500 |  |  |  | 240,625 |  |  | — |  |  | 240,625 |  |  | 240,625 |
Term Loan B(1) |  | 664,379 |  |  | (3,434) |  |  | 660,945 |  |  | 665,000 |  |  |  | 666,073 |  |  | (3,747) |  |  | 662,326 |  |  | 666,750 |
Australian Dollar Term Loan |  | 197,929 |  |  | (585) |  |  | 197,344 |  |  | 199,746 |  |  |  | 202,641 |  |  | (633) |  |  | 202,008 |  |  | 204,623 |
UK Bilateral Revolving Credit Facility |  | 173,153 |  |  | — |  |  | 173,153 |  |  | 173,153 |  |  |  | 169,361 |  |  | — |  |  | 169,361 |  |  | 169,361 |
3 7/8% GBP Senior Notes due 2025 (the "GBP Notes") |  | 494,722 |  |  | (2,413) |  |  | 492,309 |  |  | 467,572 |  |  |  | 483,888 |  |  | (2,589) |  |  | 481,299 |  |  | 445,206 |
4 7/8% Senior Notes due 2027 (the "4 7/8% Notes due 2027")(2) |  | 1,000,000 |  |  | (6,399) |  |  | 993,601 |  |  | 942,500 |  |  |  | 1,000,000 |  |  | (6,754) |  |  | 993,246 |  |  | 917,500 |
5 1/4% Senior Notes due 2028 (the "5 1/4% Notes due 2028")(2) |  | 825,000 |  |  | (5,904) |  |  | 819,096 |  |  | 781,688 |  |  |  | 825,000 |  |  | (6,200) |  |  | 818,800 |  |  | 754,875 |
5% Senior Notes due 2028 (the "5% Notes due 2028")(2) |  | 500,000 |  |  | (3,859) |  |  | 496,141 |  |  | 461,250 |  |  |  | 500,000 |  |  | (4,039) |  |  | 495,961 |  |  | 450,000 |
4 7/8% Senior Notes due 2029 (the "4 7/8% Notes due 2029")(2) |  | 1,000,000 |  |  | (9,403) |  |  | 990,597 |  |  | 897,500 |  |  |  | 1,000,000 |  |  | (9,764) |  |  | 990,236 |  |  | 865,000 |
5 1/4% Senior Notes due 2030 (the "5 1/4% Notes due 2030")(2) |  | 1,300,000 |  |  | (11,031) |  |  | 1,288,969 |  |  | 1,170,000 |  |  |  | 1,300,000 |  |  | (11,407) |  |  | 1,288,593 |  |  | 1,111,500 |
4 1/2% Senior Notes due 2031 (the "4 1/2% Notes")(2) |  | 1,100,000 |  |  | (9,850) |  |  | 1,090,150 |  |  | 937,750 |  |  |  | 1,100,000 |  |  | (10,161) |  |  | 1,089,839 |  |  | 891,000 |
5% Senior Notes due 2032 (the "5% Notes due 2032") |  | 750,000 |  |  | (12,185) |  |  | 737,815 |  |  | 643,125 |  |  |  | 750,000 |  |  | (12,511) |  |  | 737,489 |  |  | 622,500 |
5 5/8% Senior Notes due 2032 (the "5 5/8% Notes")(2) |  | 600,000 |  |  | (5,421) |  |  | 594,579 |  |  | 538,500 |  |  |  | 600,000 |  |  | (5,566) |  |  | 594,434 |  |  | 520,500 |
Real Estate Mortgages, Financing Lease Liabilities and Other |  | 434,283 |  |  | (522) |  |  | 433,761 |  |  | 434,283 |  |  |  | 425,777 |  |  | (578) |  |  | 425,199 |  |  | 425,777 |
Accounts Receivable Securitization Program |  | 325,000 |  |  | (477) |  |  | 324,523 |  |  | 325,000 |  |  |  | 314,700 |  |  | (531) |  |  | 314,169 |  |  | 314,700 |
Total Long-term Debt |  | 11,040,966 |  |  | (77,170) |  |  | 10,963,796 |  |  |  |  |  | 10,650,265 |  |  | (81,270) |  |  | 10,568,995 |  |  |
Less Current Portion |  | (101,608) |  |  | — |  |  | (101,608) |  |  |  |  |  | (87,546) |  |  | — |  |  | (87,546) |  |  |
Long-term Debt, Net of Current Portion |  | $ | 10,939,358 |  |  | $ | (77,170) |  |  | $ | 10,862,188 |  |  |  |  |  | $ | 10,562,719 |  |  | $ | (81,270) |  |  | $ | 10,481,449 |  |  |

(1)Collectively, the “Credit Agreement”. The Credit Agreement consists of a revolving credit facility (the “Revolving Credit Facility”), a term loan A (the “Term Loan A”) and a term loan B (the "Term Loan B"). The Revolving Credit Facility and the Term Loan A are scheduled to mature on March 18, 2027. The Term Loan B is scheduled to mature on January 2, 2026. The remaining amount available for borrowing under the Revolving Credit Facility as of March 31, 2023 was $807,146 (which amount represents the maximum availability as of such date). The weighted average interest rate in effect under the Revolving Credit Facility was 6.6% and 6.2% as of March 31, 2023 and December 31, 2022, respectively.
(2)Collectively, the "Parent Notes".
See Note 7 to Notes to Consolidated Financial Statements included in our Annual Report for additional information regarding our long-term debt, including the direct obligors of each of our debt instruments as well as information regarding the fair value of our debt instruments (including the levels of the fair value hierarchy used to determine the fair value of our debt instruments). The levels of the fair value hierarchy used to determine the fair value of our debt as of March 31, 2023 are consistent with the levels of the fair value hierarchy used to determine the fair value of our debt as of December 31, 2022 (which are disclosed in our Annual Report).

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Table of Contents
Part I. Financial Information

IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
6. DEBT (CONTINUED)
LETTERS OF CREDIT
As of March 31, 2023, we had outstanding letters of credit totaling $39,825, of which $3,854 reduce our borrowing capacity under the Revolving Credit Facility. The letters of credit expire at various dates between June 2023 and July 2025.
DEBT COVENANTS
The Credit Agreement, our bond indentures and other agreements governing our indebtedness contain certain restrictive financial and operating covenants, including covenants that restrict our ability to complete acquisitions, pay cash dividends, incur indebtedness, make investments, sell assets and take other specified corporate actions. The covenants do not contain a rating trigger. Therefore, a change in our debt rating would not trigger a default under the Credit Agreement, our bond indentures or other agreements governing our indebtedness. The Credit Agreement requires that we satisfy a net total lease adjusted leverage ratio and a fixed charge coverage ratio on a quarterly basis and our bond indentures require that, among other things, we satisfy a leverage ratio (not lease adjusted) or a fixed charge coverage ratio (not lease adjusted), as a condition to taking actions such as paying dividends and incurring indebtedness.
The Credit Agreement uses earnings before interest, taxes, depreciation and amortization and rent expense ("EBITDAR") based calculations and the bond indentures use earnings before interest, taxes, depreciation and amortization ("EBITDA") based calculations as the primary measures of financial performance for purposes of calculating leverage and fixed charge coverage ratios. The EBITDAR- and EBITDA-based leverage calculations include our consolidated subsidiaries, other than those we have designated as "Unrestricted Subsidiaries" as defined in the Credit Agreement and bond indentures. Generally, the Credit Agreement and the bond indentures use a trailing four fiscal quarter basis for purposes of the relevant calculations and require certain adjustments and exclusions for purposes of those calculations, which make the calculation of financial performance for purposes of those calculations under the Credit Agreement and bond indentures not directly comparable to Adjusted EBITDA as presented herein. We are in compliance with our leverage and fixed charge coverage ratios under the Credit Agreement, our bond indentures and other agreements governing our indebtedness as of March 31, 2023. Noncompliance with these leverage and fixed charge coverage ratios would have a material adverse effect on our financial condition and liquidity.
7. COMMITMENTS AND CONTINGENCIES
We are involved in litigation from time to time in the ordinary course of business, including litigation arising from damage to customer assets in our facilities caused by fires and other natural disasters. While the outcome of litigation is inherently uncertain, we do not believe any current litigation will have a material adverse effect on our consolidated financial condition, results of operations or cash flows.
We have estimated a reasonably possible range for all loss contingencies and believe it is reasonably possible that we could incur aggregate losses in addition to amounts currently accrued for all matters up to an additional $20,500 over the next several years, of which certain amounts would be covered by insurance or indemnity arrangement.

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Table of Contents
Part I. Financial Information

IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
8. STOCKHOLDERS' EQUITY MATTERS
In fiscal year 2022 and the three months ended March 31, 2023, our board of directors declared the following dividends:

DECLARATION DATE | DIVIDEND PER SHARE |  | RECORD DATE |  | TOTAL AMOUNT |  | PAYMENT DATE
February 24, 2022 | $ | 0.6185 |  |  | March 15, 2022 |  | $ | 179,661 |  |  | April 6, 2022
April 28, 2022 | 0.6185 |  |  | June 15, 2022 |  | 179,781 |  |  | July 6, 2022
August 4, 2022 | 0.6185 |  |  | September 15, 2022 |  | 179,790 |  |  | October 4, 2022
November 3, 2022 | 0.6185 |  |  | December 15, 2022 |  | 179,866 |  |  | January 5, 2023
February 23, 2023 | 0.6185 |  |  | March 15, 2023 |  | 180,339 |  |  | April 5, 2023

On May 4, 2023, we declared a dividend to our stockholders of record as of June 15, 2023 of $0.6185 per share, payable on July 6, 2023.
9. SEGMENT INFORMATION
Our reportable segments as of December 31, 2022 are described in Note 11 to Notes to Consolidated Financial Statements included in our Annual Report and are as follows:
•Global RIM Business
•Global Data Center Business
•Corporate and Other
An analysis of our business segment information and reconciliation to the accompanying Condensed Consolidated Financial Statements for the three months ended March 31, 2023 and 2022 is as follows:

| THREE MONTHS ENDED MARCH 31, |  |
| 2023 |  | 2022 |  |  |  |
Global RIM Business |  |  |  |  |  |  |
Total Revenues | $ | 1,126,526 |  |  | $ | 1,048,891 |  |  |  |  |
Adjusted EBITDA | 477,784 |  |  | 448,795 |  |  |  |  |
Global Data Center Business |  |  |  |  |  |  |
Total Revenues | $ | 112,305 |  |  | $ | 96,987 |  |  |  |  |
Adjusted EBITDA | 50,635 |  |  | 41,977 |  |  |  |  |
Corporate and Other |  |  |  |  |  |  |
Total Revenues | $ | 75,518 |  |  | $ | 102,168 |  |  |  |  |
Adjusted EBITDA | (67,611) |  |  | (59,778) |  |  |  |  |
Total Consolidated |  |  |  |  |  |  |
Total Revenues | $ | 1,314,349 |  |  | $ | 1,248,046 |  |  |  |  |
Adjusted EBITDA | 460,808 |  |  | 430,994 |  |  |  |  |

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Table of Contents
Part I. Financial Information

IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
9. SEGMENT INFORMATION (CONTINUED)
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 and other transformation •(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate) | •Other expense (income), 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 months ended March 31, 2023 and 2022 is as follows:

| THREE MONTHS ENDED MARCH 31, |  |
| 2023 |  | 2022 |  |  |  |
Net Income (Loss) | $ | 65,535 |  |  | $ | 41,707 |  |  |  |  |
Add/(Deduct): |  |  |  |  |  |  |
Interest expense, net | 137,169 |  |  | 114,442 |  |  |  |  |
Provision (benefit) for income taxes | 16,758 |  |  | 10,080 |  |  |  |  |
Depreciation and amortization | 182,094 |  |  | 183,615 |  |  |  |  |
Acquisition and Integration Costs | 1,595 |  |  | 15,661 |  |  |  |  |
Restructuring and other transformation | 36,913 |  |  | — |  |  |  |  |
(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate) | (13,061) |  |  | (705) |  |  |  |  |
Other expense (income), net, excluding our share of losses (gains) from our unconsolidated joint ventures | 17,491 |  |  | 53,515 |  |  |  |  |
Stock-based compensation expense | 12,509 |  |  | 11,341 |  |  |  |  |
Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures | 3,805 |  |  | 1,338 |  |  |  |  |
Adjusted EBITDA | $ | 460,808 |  |  | $ | 430,994 |  |  |  |  |

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Table of Contents
Part I. Financial Information

IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
9. SEGMENT INFORMATION (CONTINUED)
Information as to our revenues by product and service lines by segment for the three months ended March 31, 2023 and 2022 is as follows:

|  | THREE MONTHS ENDED MARCH 31, |  |
|  | 2023 |  | 2022 |  |  |  |
Global RIM Business |  |  |  |  |  |  |  |
Records Management(1) |  | $ | 867,988 |  |  | $ | 802,553 |  |  |  |  |
Data Management(1) |  | 129,594 |  |  | 133,656 |  |  |  |  |
Information Destruction(1)(2) |  | 128,944 |  |  | 112,682 |  |  |  |  |
Data Center(1) |  | — |  |  | — |  |  |  |  |
Global Data Center Business |  |  |  |  |  |  |  |
Records Management(1) |  | $ | — |  |  | $ | — |  |  |  |  |
Data Management(1) |  | — |  |  | — |  |  |  |  |
Information Destruction(1) |  | — |  |  | — |  |  |  |  |
Data Center(1) |  | 112,305 |  |  | 96,987 |  |  |  |  |
Corporate and Other |  |  |  |  |  |  |  |
Records Management(1) |  | $ | 34,348 |  |  | $ | 31,898 |  |  |  |  |
Data Management(1) |  | — |  |  | — |  |  |  |  |
Information Destruction(1)(3) |  | 41,170 |  |  | 70,270 |  |  |  |  |
Data Center(1) |  | — |  |  | — |  |  |  |  |
Total Consolidated |  |  |  |  |  |  |  |
Records Management(1) |  | $ | 902,336 |  |  | $ | 834,451 |  |  |  |  |
Data Management(1) |  | 129,594 |  |  | 133,656 |  |  |  |  |
Information Destruction(1)(2)(3) |  | 170,114 |  |  | 182,952 |  |  |  |  |
Data Center(1) |  | 112,305 |  |  | 96,987 |  |  |  |  |

(1)Each of these offerings has a component of revenue that is storage rental related and a component that is service revenue, 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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Table of Contents
Part I. Financial Information

IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
10. RELATED PARTIES
In October 2020, in connection with the formation of the Frankfurt JV, we entered into agreements whereby we earn various fees, including (i) special project revenue and (ii) property management and construction and development fees for services we are providing to the Frankfurt JV (the "Frankfurt JV Agreements").
In March 2019, in connection with the formation of the MakeSpace JV (as defined in Note 5 to Notes to Consolidated Financial Statements included in our Annual Report), we entered into a storage and service agreement with the MakeSpace JV to provide certain storage and related services to the MakeSpace JV (the "MakeSpace Agreement"). In February 2022, in connection with the formation of the Clutter JV, we terminated the MakeSpace Agreement and entered into a storage and service agreement with the Clutter JV to provide certain storage and related services to the Clutter JV (the "Clutter Agreement").
Revenue recognized in the accompanying Condensed Consolidated Statements of Operations under these agreements for the three months ended March 31, 2023 and 2022 is as follows (approximately):

| THREE MONTHS ENDED MARCH 31,
| 2023 |  | 2022
Frankfurt JV Agreements(1) | $ | 900 |  |  | $ | 7,100 |
MakeSpace Agreement and Clutter Agreement(2) | 6,000 |  | 7,000 |

(1)Revenue associated with the Frankfurt JV Agreements is presented as a component of our Global Data Center Business segment.
(2)Revenue associated with the MakeSpace Agreement and Clutter Agreement is presented as a component of our Global RIM Business segment.
11. RESTRUCTURING AND OTHER TRANSFORMATION
PROJECT MATTERHORN
In September 2022, we announced Project Matterhorn, a global program designed to accelerate the growth of our business. Project Matterhorn investments will focus on transforming our operating model to a global operating model. Project Matterhorn will focus on the formation of a solution-based sales approach that is designed to allow us to optimize our shared services and best practices to better serve our customers' needs. We will be investing to accelerate growth and to capture a greater share of the large, global addressable markets in which we operate. We expect to incur approximately $150,000 in costs annually related to Project Matterhorn from 2023 through 2025. Costs are comprised of (1) restructuring costs, which include (i) site consolidation and other related exit costs, (ii) employee severance costs and (iii) certain professional fees associated with these activities, and (2) other transformation costs, which include professional fees such as project management costs and costs for third party consultants who are assisting in the enablement of our growth initiatives. Total costs related to Project Matterhorn during the three months ended March 31, 2023 were approximately $36,913 and are included in Restructuring and other transformation in our Condensed Consolidated Statement of Operations. There were no Restructuring and other transformation costs related to Project Matterhorn for the three months ended March 31, 2022.
Restructuring and other transformation related to Project Matterhorn included in the accompanying Condensed Consolidated Statement of Operations for the three months ended March 31, 2023, and from the inception of Project Matterhorn through March 31, 2023, is as follows:

| THREE MONTHS ENDED MARCH 31, 2023 |  | FROM INCEPTION OF PROJECT MATTERHORN THROUGH MARCH 31, 2023
Restructuring | $ | 11,957 |  |  | $ | 25,249 |
Other transformation | 24,956 |  |  | 53,597 |
Restructuring and other transformation | $ | 36,913 |  |  | $ | 78,846 |

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Part I. Financial Information

IRON MOUNTAIN INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(In thousands, except share and per share data) (Unaudited)
11. RESTRUCTURING AND OTHER TRANSFORMATION (CONTINUED)
Restructuring costs for Project Matterhorn, included as a component of Restructuring and other transformation in the accompanying Condensed Consolidated Statement of Operations, by segment for the three months ended March 31, 2023, and from the inception of Project Matterhorn through March 31, 2023, is as follows:

| THREE MONTHS ENDED MARCH 31, 2023 |  | FROM INCEPTION OF PROJECT MATTERHORN THROUGH MARCH 31, 2023
Global RIM Business | $ | 9,525 |  |  | $ | 22,608 |
Global Data Center Business | 78 |  |  | 78 |
Corporate and Other | 2,354 |  |  | 2,563 |
Total restructuring costs | $ | 11,957 |  |  | $ | 25,249 |

Other transformation costs for Project Matterhorn, included as a component of Restructuring and other transformation in the accompanying Condensed Consolidated Statement of Operations, by segment for the three months ended March 31, 2023, and from the inception of Project Matterhorn through March 31, 2023, is as follows:

| THREE MONTHS ENDED MARCH 31, 2023 |  | FROM INCEPTION OF PROJECT MATTERHORN THROUGH MARCH 31, 2023
Global RIM Business | $ | 3,485 |  |  | $ | 7,386 |
Global Data Center Business | 870 |  |  | 928 |
Corporate and Other | 20,601 |  |  | 45,283 |
Total other transformation costs | $ | 24,956 |  |  | $ | 53,597 |

Accrued restructuring costs and accrued other transformation costs included in the accompanying Condensed Consolidated Balance Sheet as of March 31, 2023 were approximately $4,600 and $12,000, respectively.

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Part I. Financial Information

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of our financial condition and results of operations for the three months ended March 31, 2023 should be read in conjunction with our Condensed Consolidated Financial Statements and Notes thereto for the three months ended March 31, 2023, included herein, and our Consolidated Financial Statements and Notes thereto for the year ended December 31, 2022, included in our Annual Report on Form 10-K filed with the United States Securities and Exchange Commission ("SEC") on February 23, 2023 (our "Annual Report").
FORWARD-LOOKING STATEMENTS
We have made statements in this Quarterly Report that constitute "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements concern our current expectations regarding our future results from operations, economic performance, financial condition, goals, strategies, investment objectives, plans and achievements. These forward-looking statements are subject to various known and unknown risks, uncertainties and other factors, and you should not rely upon them except as statements of our present intentions and of our present expectations, which may or may not occur. When we use words such as "believes", "expects", "anticipates", "estimates", "plans", "intends", "pursue", "will" or similar expressions, we are making forward-looking statements. Although we believe that our forward-looking statements are based on reasonable assumptions, our expected results may not be achieved, and actual results may differ materially from our expectations. In addition, important factors that could cause actual results to differ from expectations include, among others:
•our ability or inability to execute our strategic growth plan, including our ability to invest according to plan, grow our businesses (including through joint ventures), incorporate alternative technologies into our offerings, achieve satisfactory returns on new product offerings, continue our revenue management, expand and manage our global operations, complete acquisitions on satisfactory terms, integrate acquired companies efficiently and transition to more sustainable sources of energy;
•changes in customer preferences and demand for our storage and information management services, including as a result of the shift from paper and tape storage to alternative technologies that require less physical space;
•the impact of our distribution requirements on our ability to execute our business plan;
•the costs of complying with and our ability to comply with laws, regulations and customer requirements, including those relating to data privacy and cybersecurity issues, as well as fire and safety and environmental standards;
•the impact of attacks on our internal information technology ("IT") systems, including the impact of such incidents on our reputation and ability to compete and any litigation or disputes that may arise in connection with such incidents;
•our ability to fund capital expenditures;
•our ability to remain qualified for taxation as a real estate investment trust for United States federal income tax purposes ("REIT");
•changes in the political and economic environments in the countries in which we operate and changes in the global political climate;
•our ability to raise debt or equity capital and changes in the cost of our debt;
•our ability to comply with our existing debt obligations and restrictions in our debt instruments;
•the impact of service interruptions or equipment damage and the cost of power on our data center operations;
•the cost or potential liabilities associated with real estate necessary for our business;
•unexpected events, including those resulting from climate change or geopolitical events, could disrupt our operations and adversely affect our reputation and results of operations;
•failures to implement and manage new IT systems;
•other trends in competitive or economic conditions affecting our financial condition or results of operations not presently contemplated; and
•the other risks described in our periodic reports filed with the SEC, including under the caption "Risk Factors" in Part I, Item 1A of our Annual Report on Form 10-K filed with the SEC on February 23, 2023.
Except as required by law, we undertake no obligation to update any forward-looking statements appearing in this report.

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Part I. Financial Information

OVERVIEW
The following discussions set forth, for the periods indicated, management's discussion and analysis of financial condition and results of operations. Significant trends and changes are discussed for the three months ended March 31, 2023 within each section.
PROJECT MATTERHORN
In September 2022, we announced a global program designed to accelerate the growth of our business ("Project Matterhorn"). Project Matterhorn investments will focus on transforming our operating model to a global operating model. Project Matterhorn will focus on the formation of a solution-based sales approach that is designed to allow us to optimize our shared services and best practices to better serve our customers' needs. We will be investing to accelerate growth and to capture a greater share of the large, global addressable markets in which we operate. We expect to incur approximately $150.0 million in costs annually related to Project Matterhorn from 2023 through 2025. Costs are comprised of (1) restructuring costs, which include (i) site consolidation and other related exit costs, (ii) employee severance costs and (iii) certain professional fees associated with these activities, and (2) other transformation costs, which include professional fees such as project management costs and costs for third party consultants who are assisting in the enablement of our growth initiatives. There were no Restructuring and other transformation costs related to Project Matterhorn for the three months ended March 31, 2022. The following chart presents (in thousands) total Restructuring and other transformation costs related to Project Matterhorn from the inception of Project Matterhorn through March 31, 2023 and for the three months ended March 31, 2023:

From the Inception of Project Matterhorn through March 31, 2023 |  |
For the Three Months Ended March 31, 2023 |  |

See Note 11 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for more information on Restructuring and other transformation costs.

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Part I. Financial Information

GENERAL
RESULTS OF OPERATIONS - KEY TRENDS
•We have experienced steady volume in our Global RIM Business segment, with organic storage rental revenue growth driven primarily by revenue management. We expect organic storage rental revenue growth to benefit from revenue management and volume to be relatively stable in the near term.
•Our organic service revenue growth is primarily due to increases in our service activity. We expect organic service revenue growth in 2023 to benefit from our new and existing digital offerings, as well as our traditional services.
•We expect continued total revenue and Adjusted EBITDA growth in 2023 as a result of our focus on new product and service offerings, innovation, customer solutions and market expansion in line with our Project Matterhorn objectives.
•In the near-term, we expect the impact of a stronger US dollar to create headwinds on reported total revenue and Adjusted EBITDA growth in 2023 against prior periods.
Cost of sales (excluding depreciation and amortization) and Selling, general and administrative expenses for the three months ended March 31, 2023 consists of the following:

COST OF SALES |  | SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

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Part I. Financial Information

NON-GAAP MEASURES
ADJUSTED EBITDA
We define Adjusted EBITDA 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 (as defined below) •Restructuring and other transformation •(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate) |  | •Other expense (income), net •Stock-based compensation expense

Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenues. We also show Adjusted EBITDA and Adjusted EBITDA Margin for each of our reportable segments under "Results of Operations – Segment Analysis" below.
Adjusted EBITDA excludes both interest expense, net and the provision (benefit) for income taxes. These expenses are associated with our capitalization and tax structures, which we do not consider when evaluating the operating profitability of our core operations. Adjusted EBITDA does not include depreciation and amortization expenses, in order to eliminate the impact of capital investments, which we evaluate by comparing capital expenditures to incremental revenue generated and as a percentage of total revenues. Adjusted EBITDA and Adjusted EBITDA Margin should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with accounting principles generally accepted in the United States of America ("GAAP"), such as operating income, net income (loss) or cash flows from operating activities.
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (IN THOUSANDS):

| THREE MONTHS ENDED MARCH 31, |  |
| 2023 |  | 2022 |  |  |  |
Net Income (Loss) | $ | 65,535 |  |  | $ | 41,707 |  |  |  |  |
Add/(Deduct): |  |  |  |  |  |  |
Interest expense, net | 137,169 |  |  | 114,442 |  |  |  |  |
Provision (benefit) for income taxes | 16,758 |  |  | 10,080 |  |  |  |  |
Depreciation and amortization | 182,094 |  |  | 183,615 |  |  |  |  |
Acquisition and Integration Costs(1) | 1,595 |  |  | 15,661 |  |  |  |  |
Restructuring and other transformation | 36,913 |  |  | — |  |  |  |  |
(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate) | (13,061) |  |  | (705) |  |  |  |  |
Other expense (income), net, excluding our share of losses (gains) from our unconsolidated joint ventures | 17,491 |  |  | 53,515 |  |  |  |  |
Stock-based compensation expense | 12,509 |  |  | 11,341 |  |  |  |  |
Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures | 3,805 |  |  | 1,338 |  |  |  |  |
Adjusted EBITDA | $ | 460,808 |  |  | $ | 430,994 |  |  |  |  |

(1)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 and system integration costs (collectively, "Acquisition and Integration Costs").

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Part I. Financial Information

ADJUSTED EPS
We define Adjusted EPS as reported earnings per share fully diluted from net income (loss) attributable to Iron Mountain Incorporated (inclusive of our share of adjusted losses (gains) from our unconsolidated joint ventures) and excluding certain items, specifically:

EXCLUDED |  |
•Acquisition and Integration Costs •Restructuring and other transformation •Amortization related to the write-off of certain customer relationship intangible assets •(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate) |  | •Other expense (income), net •Stock-based compensation expense •Non-cash amortization related to derivative instruments •Tax impact of reconciling items and discrete tax items

We do not believe these excluded items to be indicative of our ongoing operating results, and they are not considered when we are forecasting our future results. We believe Adjusted EPS is of value to our current and potential investors when comparing our results from past, present and future periods.
RECONCILIATION OF REPORTED EPS—FULLY DILUTED FROM NET INCOME (LOSS) ATTRIBUTABLE TO IRON MOUNTAIN INCORPORATED TO ADJUSTED EPS—FULLY DILUTED FROM NET INCOME (LOSS) ATTRIBUTABLE TO IRON MOUNTAIN INCORPORATED:

| THREE MONTHS ENDED MARCH 31, |  |
| 2023 |  | 2022 |  |  |  |
Reported EPS—Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated | $ | 0.22 |  |  | $ | 0.14 |  |  |  |  |
Add/(Deduct): |  |  |  |  |  |  |
Acquisition and Integration Costs | 0.01 |  |  | 0.05 |  |  |  |  |
Restructuring and other transformation | 0.13 |  |  | — |  |  |  |  |
Amortization related to the write-off of certain customer relationship intangible assets | — |  |  | 0.02 |  |  |  |  |
(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate) | (0.04) |  |  | — |  |  |  |  |
Other expense (income), net, excluding our share of losses (gains) from our unconsolidated joint ventures | 0.06 |  |  | 0.18 |  |  |  |  |
Stock-based compensation expense | 0.04 |  |  | 0.04 |  |  |  |  |
Non-cash amortization related to derivative instruments | 0.02 |  |  | — |  |  |  |  |
Tax impact of reconciling items and discrete tax items(1) | (0.02) |  |  | (0.05) |  |  |  |  |
Adjusted EPS—Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated(2) | $ | 0.42 |  |  | $ | 0.38 |  |  |  |  |

(1)The difference between our effective tax rates and our structural tax rate (or adjusted effective tax rates) for the three months ended March 31, 2023 and 2022 is primarily due to (i) the reconciling items above, which impact our reported net income (loss) before provision (benefit) for income taxes but have an insignificant impact on our reported provision (benefit) for income taxes and (ii) other discrete tax items. Our structural tax rate for purposes of the calculation of Adjusted EPS for the three months ended March 31, 2023 and 2022 was 15.2% and 18.6%, respectively.
(2)Columns may not foot due to rounding.

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Part I. Financial Information

FFO (NAREIT) AND FFO (NORMALIZED)
Funds from operations ("FFO") is defined by the National Association of Real Estate Investment Trusts as net income (loss) excluding depreciation on real estate assets, losses and gains on sale of real estate, net of tax, and amortization of data center leased-based intangibles ("FFO (Nareit)"). We calculate our FFO measures, including FFO (Nareit), adjusting for our share of reconciling items from our unconsolidated joint ventures. FFO (Nareit) does not give effect to real estate depreciation because these amounts are computed, under GAAP, to allocate the cost of a property over its useful life. Because values for well-maintained real estate assets have historically increased or decreased based upon prevailing market conditions, we believe that FFO (Nareit) provides investors with a clearer view of our operating performance. Our most directly comparable GAAP measure to FFO (Nareit) is net income (loss).
We modify FFO (Nareit), as is common among REITs seeking to provide financial measures that most meaningfully reflect their particular business ("FFO (Normalized)"). Our definition of FFO (Normalized) excludes certain items included in FFO (Nareit) that we believe are not indicative of our core operating results, specifically:

EXCLUDED |  |
•Acquisition and Integration Costs •Restructuring and other transformation •Loss (gain) on disposal/write-down of property, plant and equipment, net (excluding real estate) •Other expense (income), net |  | •Stock-based compensation expense •Non-cash amortization related to derivative instruments •Real estate financing lease depreciation •Tax impact of reconciling items and discrete tax items

RECONCILIATION OF NET INCOME (LOSS) TO FFO (NAREIT) AND FFO (NORMALIZED) (IN THOUSANDS):

| THREE MONTHS ENDED MARCH 31, |  |
| 2023 |  | 2022 |  |  |  |
Net Income (Loss) | $ | 65,535 |  |  | $ | 41,707 |  |  |  |  |
Add/(Deduct): |  |  |  |  |  |  |
Real estate depreciation | 76,129 |  |  | 79,333 |  |  |  |  |
(Gain) loss on sale of real estate, net of tax | (15,746) |  |  | 214 |  |  |  |  |
Data center lease-based intangible assets amortization | 6,129 |  |  | 4,123 |  |  |  |  |
Our share of FFO (Nareit) reconciling items from our unconsolidated joint ventures | 132 |  |  | — |  |  |  |  |
FFO (Nareit) | 132,179 |  |  | 125,377 |  |  |  |  |
Add/(Deduct): |  |  |  |  |  |  |
Acquisition and Integration Costs | 1,595 |  |  | 15,661 |  |  |  |  |
Restructuring and other transformation | 36,913 |  |  | — |  |  |  |  |
Loss (gain) on disposal/write-down of property, plant and equipment, net (excluding real estate) | 4,550 |  |  | (919) |  |  |  |  |
Other expense (income), net, excluding our share of losses (gains) from our unconsolidated joint ventures(1) | 17,491 |  |  | 53,515 |  |  |  |  |
Stock-based compensation expense | 12,509 |  |  | 11,341 |  |  |  |  |
Non-cash amortization related to derivative instruments | 5,834 |  |  | — |  |  |  |  |
Real estate financing lease depreciation | 2,988 |  |  | 3,780 |  |  |  |  |
Tax impact of reconciling items and discrete tax items(2) | (6,893) |  |  | (15,632) |  |  |  |  |
Our share of FFO (Normalized) reconciling items from our unconsolidated joint ventures | 226 |  |  | (20) |  |  |  |  |
FFO (Normalized) | $ | 207,392 |  |  | $ | 193,103 |  |  |  |  |

(1)Includes foreign currency transaction (gains) losses, net and other, net. See Note 2.k. to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding the components of Other expense (income), net.
(2)Represents the tax impact of (i) the reconciling items above, which impact our reported net income (loss) before provision (benefit) for income taxes and (ii) other discrete tax items. Discrete tax items resulted in a (benefit) provision for income taxes of $(0.4) million and $(10.0) million for the three months ended March 31, 2023 and 2022, respectively.

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Part I. Financial Information

CRITICAL ACCOUNTING ESTIMATES
Our discussion and analysis of our financial condition and results of operations are based upon our Condensed Consolidated Financial Statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires us to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities at the date of the financial statements and for the period then ended. On an ongoing basis, we evaluate the estimates used. We base our estimates on historical experience, actuarial estimates, current conditions and various other assumptions that we believe to be reasonable under the circumstances. These estimates form the basis for making judgments about the carrying values of assets and liabilities and are not readily apparent from other sources. Actual results may differ from these estimates. Our critical accounting estimates include the following, which are listed in no particular order:
•Revenue Recognition
•Accounting for Acquisitions
•Impairment of Tangible and Intangible Assets
•Income Taxes
Further detail regarding our critical accounting estimates can be found in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report, and the Consolidated Financial Statements and the Notes included therein. We have determined that no material changes concerning our critical accounting estimates have occurred since December 31, 2022.
RESULTS OF OPERATIONS
COMPARISON OF THE THREE MONTHS ENDED MARCH 31, 2023 TO THE THREE MONTHS ENDED MARCH 31, 2022 (IN THOUSANDS):

| THREE MONTHS ENDED MARCH 31, |  | DOLLAR CHANGE |  | PERCENTAGE CHANGE
| 2023 |  | 2022 |  |
Revenues | $ | 1,314,349 |  | $ | 1,248,046 |  | $ | 66,303 |  |  | 5.3 | %
Operating Expenses | 1,073,687 |  | 1,025,916 |  | 47,771 |  |  | 4.7 | %
Operating Income | 240,662 |  | 222,130 |  | 18,532 |  |  | 8.3 | %
Other Expenses, Net | 175,127 |  | 180,423 |  | (5,296) |  |  | (2.9) | %
Net Income (Loss) | 65,535 |  | 41,707 |  | 23,828 |  |  | 57.1 | %
Net Income (Loss) Attributable to Noncontrolling Interests | 940 |  | (592) |  | 1,532 |  |  | 258.8 | %
Net Income (Loss) Attributable to Iron Mountain Incorporated | $ | 64,595 |  | $ | 42,299 |  | $ | 22,296 |  |  | 52.7 | %
Adjusted EBITDA(1) | $ | 460,808 |  | $ | 430,994 |  | $ | 29,814 |  |  | 6.9 | %
Adjusted EBITDA Margin(1) | 35.1 | % |  | 34.5 | % |  |  |  |

(1)See "Non-GAAP Measures—Adjusted EBITDA" in this Quarterly Report for the definitions of Adjusted EBITDA and Adjusted EBITDA Margin, reconciliation of Net Income (Loss) to Adjusted EBITDA and a discussion of why we believe these non-GAAP measures provide relevant and useful information to our current and potential investors.

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Part I. Financial Information

REVENUES
Total revenues consist of the following (in thousands):

| THREE MONTHS ENDED MARCH 31, |  |  |  | PERCENTAGE CHANGE |  |  |  |
| 2023 |  | 2022 |  | DOLLAR CHANGE |  | ACTUAL |  | CONSTANT CURRENCY(1) |  | ORGANIC GROWTH(2) |  | IMPACT OF ACQUISITIONS
Storage Rental | $ | 810,089 |  |  | $ | 751,070 |  |  | $ | 59,019 |  |  | 7.9 | % |  | 10.2 | % |  | 11.1 | % |  | (0.9) | %
Service | 504,260 |  |  | 496,976 |  |  | 7,284 |  |  | 1.5 | % |  | 3.5 | % |  | 2.0 | % |  | 1.5 | %
Total Revenues | $ | 1,314,349 |  |  | $ | 1,248,046 |  |  | $ | 66,303 |  |  | 5.3 | % |  | 7.5 | % |  | 7.5 | % |  | — | %

(1)Constant currency growth rates, which are a non-GAAP measure, are calculated by translating the 2022 results at the 2023 average exchange rates.
(2)Our organic revenue growth rate, which is a non-GAAP measure, represents the year-over-year growth rate of our revenues excluding the impact of business acquisitions, divestitures and foreign currency exchange rate fluctuations. Our organic revenue growth rate includes the impact of acquisitions of customer relationships.
TOTAL REVENUES
For the three months ended March 31, 2023, the increase in reported revenue was primarily driven by organic storage rental revenue growth and organic service revenue growth. Foreign currency exchange rate fluctuations decreased our reported revenue growth rate for the three months ended March 31, 2023 by 2.2% compared to the prior year period.
STORAGE RENTAL REVENUE AND SERVICE REVENUE
Primary factors influencing the change in reported storage rental revenue and reported service revenue for the three months ended March 31, 2023 compared to the three months ended March 31, 2022 include the following:

STORAGE RENTAL REVENUE |  | •organic storage rental revenue growth driven by increased volume in faster growing markets and our Global Data Center Business segment and revenue management; •a 0.3% increase in total global volume excluding deconsolidations (also excluding acquisitions, total global volume increased 0.3%); and •a decrease of $15.7 million due to foreign currency exchange rate fluctuations.
SERVICE REVENUE |  | •organic service revenue growth driven by increased service activity levels in our Global RIM business, partially offset by service revenue declines in our asset lifecycle management business as a result of component price declines, partially offset by increased volume; and •a decrease of $9.9 million due to foreign currency exchange rate fluctuations.

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Part I. Financial Information

OPERATING EXPENSES
COST OF SALES
Cost of sales (excluding depreciation and amortization) consists of the following expenses (in thousands):

| THREE MONTHS ENDED MARCH 31, |  |  |  | PERCENTAGE CHANGE |  | % OF TOTAL REVENUES |  | PERCENTAGE CHANGE (FAVORABLE)/ UNFAVORABLE
| 2023 |  | 2022 |  | DOLLAR CHANGE |  | ACTUAL |  | CONSTANT CURRENCY |  | 2023 |  | 2022 |
Labor | $ | 219,531 |  |  | $ | 201,501 |  |  | $ | 18,030 |  |  | 8.9 | % |  | 11.5 | % |  | 16.7 | % |  | 16.1 | % |  | 0.6 | %
Facilities | 240,690 |  |  | 218,319 |  |  | 22,371 |  |  | 10.2 | % |  | 13.0 | % |  | 18.3 | % |  | 17.5 | % |  | 0.8 | %
Transportation | 39,975 |  |  | 35,268 |  |  | 4,707 |  |  | 13.3 | % |  | 16.3 | % |  | 3.0 | % |  | 2.8 | % |  | 0.2 | %
Product Cost of Sales and Others | 71,430 |  |  | 91,534 |  |  | (20,104) |  |  | (22.0) | % |  | (20.8) | % |  | 5.4 | % |  | 7.3 | % |  | (1.9) | %
Total Cost of sales | $ | 571,626 |  |  | $ | 546,622 |  |  | $ | 25,004 |  |  | 4.6 | % |  | 7.0 | % |  | 43.5 | % |  | 43.8 | % |  | (0.3) | %

Primary factors influencing the change in reported Cost of sales for the three months ended March 31, 2023 compared to the three months ended March 31, 2022 include the following:
•an increase in labor costs driven by an increase in service activity, primarily within our Global RIM business;
•an increase in facilities expenses driven by increases in rent expense, reflecting the impact of our sale-leaseback activity during 2022 and the first three months of 2023, as well as increases in utilities costs;
•a decrease in product cost of sales in our asset lifecycle management business as a result of component price declines, partially offset by increased volume; and
•a decrease of $12.1 million due to foreign currency exchange rate fluctuations.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses consists of the following expenses (in thousands):

| THREE MONTHS ENDED MARCH 31, |  |  |  | PERCENTAGE CHANGE |  | % OF TOTAL REVENUES |  | PERCENTAGE CHANGE (FAVORABLE)/ UNFAVORABLE
| 2023 |  | 2022 |  | DOLLAR CHANGE |  | ACTUAL |  | CONSTANT CURRENCY |  | 2023 |  | 2022 |
General, Administrative and Other | $ | 207,023 |  |  | $ | 206,316 |  |  | $ | 707 |  |  | 0.3 | % |  | 2.9 | % |  | 15.8 | % |  | 16.5 | % |  | (0.7) | %
Sales, Marketing and Account Management | 87,497 |  |  | 74,407 |  |  | 13,090 |  |  | 17.6 | % |  | 20.0 | % |  | 6.7 | % |  | 6.0 | % |  | 0.7 | %
Total Selling, general and administrative expenses | $ | 294,520 |  |  | $ | 280,723 |  |  | $ | 13,797 |  |  | 4.9 | % |  | 7.5 | % |  | 22.4 | % |  | 22.5 | % |  | (0.1) | %

Primary factors influencing the change in reported Selling, general and administrative expenses for the three months ended March 31, 2023 compared to the three months ended March 31, 2022 include the following:
•an increase in general, administrative and other expenses, driven higher wages and benefits, employee-related costs and information technology costs, partially offset by lower professional fees;
•an increase in sales, marketing and account management expenses, driven by higher compensation expense, primarily reflecting increased headcount; and
•a decrease of $6.7 million due to foreign currency exchange rate fluctuations.
DEPRECIATION AND AMORTIZATION
Depreciation expense decreased by $0.3 million, or 0.3%, for the three months ended March 31, 2023 compared to the prior year period. See Note 2.i. to Notes to Consolidated Financial Statements included in our Annual Report for additional information regarding the useful lives over which our property, plant and equipment is depreciated.
Amortization expense decreased by $1.2 million, or 1.9%, for the three months ended March 31, 2023 compared to the prior year period.

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Part I. Financial Information

ACQUISITION AND INTEGRATION COSTS
Acquisition and Integration Costs for the three months ended March 31, 2023 and 2022 were approximately $1.6 million and $15.7 million, respectively.
RESTRUCTURING AND OTHER TRANSFORMATION
Restructuring and other transformation costs for the three months ended March 31, 2023 were $36.9 million and related to operating expenses associated with the implementation of Project Matterhorn. There were no Restructuring and other transformation costs related to Project Matterhorn for the three months ended March 31, 2022.
(GAIN) LOSS ON DISPOSAL/WRITE-DOWN OF PROPERTY, PLANT AND EQUIPMENT, NET
Gain on disposal/write-down of property, plant and equipment, net for the three months ended March 31, 2023 was approximately $13.1 million. The gains primarily consist of a gain of approximately $18.5 million associated with a sale-leaseback transaction of a facility in Singapore.
OTHER EXPENSES, NET
INTEREST EXPENSE, NET
Interest expense, net increased by $22.8 million to $137.2 million in the three months ended March 31, 2023 from $114.4 million in the prior year period. The increase is primarily due to higher average debt outstanding during the three months ended March 31, 2023 compared to the prior year period as well as an increase in our weighted average interest rate. Our weighted average interest rate, inclusive of the fees associated with our outstanding letters of credit, was 5.3% and 4.4% at March 31, 2023 and 2022, respectively. See Note 6 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding our indebtedness.
OTHER EXPENSE (INCOME), NET
Other expense (income), net for the three months ended March 31, 2023 and 2022 consists of the following (in thousands):

|  | THREE MONTHS ENDED MARCH 31, |  | DOLLAR CHANGE |  |  |  |
DESCRIPTION |  | 2023 |  | 2022 |  |  |  |  |  |
Foreign currency transaction losses (gains), net |  | $ | 14,424 |  |  | $ | (13,201) |  |  | $ | 27,625 |  |  |  |  |  |  |
Debt extinguishment expense |  | — |  |  | 671 |  |  | (671) |  |  |  |  |  |  |
Other, net |  | 6,776 |  |  | 68,431 |  |  | (61,655) |  |  |  |  |  |  |
Other Expense (Income), Net |  | $ | 21,200 |  |  | $ | 55,901 |  |  | $ | (34,701) |  |  |  |  |  |  |

PROVISION FOR INCOME TAXES
We provide for income taxes during interim periods based on our estimate of the effective tax rate for the year. Our effective tax rates for the three months ended March 31, 2023 and 2022 are as follows:

| THREE MONTHS ENDED MARCH 31, |  |
| 2023(1) |  | 2022 |  |  |  |
Effective Tax Rate | 20.4 | % |  | 19.5 | % |  |  |  |

(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, 2023 were the benefits derived from the dividends paid deduction and the differences in the tax rates to which our foreign earnings are subject.

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Part I. Financial Information

NET INCOME (LOSS) AND ADJUSTED EBITDA
The following table reflects the effect of the foregoing factors on our net income (loss) and Adjusted EBITDA (in thousands):

| THREE MONTHS ENDED MARCH 31, |  | DOLLAR CHANGE |  | PERCENTAGE CHANGE
| 2023 |  | 2022 |
Net Income (Loss) | $ | 65,535 |  |  | $ | 41,707 |  |  | $ | 23,828 |  |  | 57.1 | %
Net Income (Loss) as a percentage of Revenue | 5.0 | % |  | 3.3 | % |  |  |  |
Adjusted EBITDA | $ | 460,808 |  |  | $ | 430,994 |  |  | $ | 29,814 |  |  | 6.9 | %
Adjusted EBITDA Margin | 35.1 | % |  | 34.5 | % |  |  |  |

Adjusted EBITDA Margin for the three months ended March 31, 2023 increased by 60 basis points compared to the same prior year period driven by improved service revenue trends, revenue management and ongoing cost containment measures, partially offset by lower Adjusted EBITDA Margin in our asset lifecycle management business. | ↑ INCREASED BY $29.8 MILLION OR 6.9% Adjusted EBITDA

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Part I. Financial Information

SEGMENT ANALYSIS
See Note 9 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report, for a description of our reportable segments. Previously reported segment information has been restated to conform to the current presentation.
GLOBAL RIM BUSINESS (IN THOUSANDS)

| THREE MONTHS ENDED MARCH 31, |  |  |  | PERCENTAGE CHANGE |  |  |  |
|  | DOLLAR CHANGE |  | ACTUAL |  | CONSTANT CURRENCY |  | ORGANIC GROWTH |  | IMPACT OF ACQUISITIONS
| 2023 |  | 2022 |  |  |  |  |
Storage Rental | $ | 687,669 |  | $ | 650,087 |  | $ | 37,582 |  |  | 5.8 | % |  | 8.2 | % |  | 9.4 | % |  | (1.2) | %
Service | 438,857 |  | 398,804 |  | 40,053 |  |  | 10.0 | % |  | 12.5 | % |  | 13.6 | % |  | (1.1) | %
Segment Revenue | $ | 1,126,526 |  | $ | 1,048,891 |  | $ | 77,635 |  |  | 7.4 | % |  | 9.8 | % |  | 11.0 | % |  | (1.2) | %
Segment Adjusted EBITDA | $ | 477,784 |  | $ | 448,795 |  | $ | 28,989 |  |  |  |  |  |  |  |  |
Segment Adjusted EBITDA Margin | 42.4 | % |  | 42.8 | % |  |  |  |  |  |  |  |  |  |

THREE MONTHS ENDED YEAR OVER YEAR SEGMENT ANALYSIS: GLOBAL RIM BUSINESS (IN MILLIONS)

Storage Rental Revenue |  | Service Revenue |  | Segment Revenue |  | Segment Adjusted EBITDA

Primary factors influencing the change in revenue and Adjusted EBITDA Margin in our Global RIM Business segment for the three months ended March 31, 2023 compared to the prior year period include the following:
•organic storage rental revenue growth driven by revenue management and volume;
•a 0.2% increase in Global RIM volume excluding deconsolidations (also excluding acquisitions, Global RIM volume increased 0.2%);
•organic service revenue growth primarily driven by increases in our traditional service activity levels and growth in our Global Digital Solutions business;
•a decrease in revenue of $23.2 million due to foreign currency exchange rate fluctuations; and
•a 40 basis point decrease in Adjusted EBITDA Margin primarily driven by an increase in compensation and other employee-related costs, partially offset by revenue management.

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Part I. Financial Information

GLOBAL DATA CENTER BUSINESS (IN THOUSANDS)

| THREE MONTHS ENDED MARCH 31, |  |  |  | PERCENTAGE CHANGE |  |  |  |
|  | DOLLAR CHANGE |  | ACTUAL |  | CONSTANT CURRENCY |  | ORGANIC GROWTH |  | IMPACT OF ACQUISITIONS
| 2023 |  | 2022 |  |  |  |  |
Storage Rental | $ | 107,435 |  | $ | 87,451 |  | $ | 19,984 |  |  | 22.9 | % |  | 24.3 | % |  | 23.6 | % |  | 0.7 | %
Service | 4,870 |  | 9,536 |  | (4,666) |  |  | (48.9) | % |  | (47.9) | % |  | (47.9) | % |  | — | %
Segment Revenue | $ | 112,305 |  | $ | 96,987 |  | $ | 15,318 |  |  | 15.8 | % |  | 17.3 | % |  | 16.6 | % |  | 0.7 | %
Segment Adjusted EBITDA | $ | 50,635 |  | $ | 41,977 |  | $ | 8,658 |  |  |  |  |  |  |  |  |
Segment Adjusted EBITDA Margin | 45.1 | % |  | 43.3 | % |  |  |  |  |  |  |  |  |  |

THREE MONTHS ENDED YEAR OVER YEAR SEGMENT ANALYSIS: GLOBAL DATA CENTER BUSINESS (IN MILLIONS)

Storage Rental Revenue |  | Service Revenue |  | Segment Revenue |  | Segment Adjusted EBITDA

Primary factors influencing the change in revenue, Adjusted EBITDA and Adjusted EBITDA Margin in our Global Data Center Business segment for the three months ended March 31, 2023 compared to the prior year period include the following:
•organic storage rental revenue growth from leases that commenced during the first three months of 2023 and in prior periods and higher pass-through power costs, partially offset by churn of 150 basis points;
•an increase in Adjusted EBITDA primarily driven by organic storage rental revenue growth; and
•a 180 basis point increase in Adjusted EBITDA Margin reflecting ongoing cost management and a decline in lower margin project revenue, partially offset by higher pass-through power costs.

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Part I. Financial Information

CORPORATE AND OTHER (IN THOUSANDS)

| THREE MONTHS ENDED MARCH 31, |  |  |  | PERCENTAGE CHANGE |  |  |  |
|  | DOLLAR CHANGE |  | ACTUAL |  | CONSTANT CURRENCY |  | ORGANIC GROWTH |  | IMPACT OF ACQUISITIONS
| 2023 |  | 2022 |  |  |  |  |
Storage Rental | $ | 14,985 |  | $ | 13,532 |  | $ | 1,453 |  |  | 10.7 | % |  | 12.4 | % |  | 8.4 | % |  | 4.0 | %
Service | 60,533 |  | 88,636 |  | (28,103) |  |  | (31.7) | % |  | (30.9) | % |  | (44.0) | % |  | 13.1 | %
Revenue | $ | 75,518 |  | $ | 102,168 |  | $ | (26,650) |  |  | (26.1) | % |  | (25.2) | % |  | (37.1) | % |  | 11.9 | %
Adjusted EBITDA | $ | (67,611) |  | $ | (59,778) |  | $ | (7,833) |  |  |  |  |  |  |  |  |

Primary factors influencing the change in revenue and Adjusted EBITDA in Corporate and Other for the three months ended March 31, 2023 compared to the prior year period include the following:
•a decrease in service revenue in our asset lifecycle management business as a result of component price declines, partially offset by increased volume; and
•a decrease in Adjusted EBITDA driven by the flow through of service revenue declines in our asset lifecycle management business, partially offset by lower professional fees.

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Part I. Financial Information

LIQUIDITY AND CAPITAL RESOURCES
GENERAL
We expect to meet our short-term and long-term cash flow requirements through cash generated from operations, cash on hand, borrowings under our Credit Agreement (as defined below) and proceeds from monetizing a small portion of our total industrial real estate assets, as well as other potential financings (such as the issuance of debt). Our cash flow requirements, both in the near and long term, include, but are not limited to, capital expenditures, the repayment of outstanding debt, shareholder dividends, potential business acquisitions and normal business operation needs.
PROJECT MATTERHORN
As disclosed above, in September 2022, we announced Project Matterhorn. We estimate that the implementation of Project Matterhorn will result in costs of approximately $150.0 million per year from 2023 through 2025. Total costs related to Project Matterhorn during the three months ended March 31, 2023 were approximately $36.9 million and are included in Restructuring and other transformation in our Condensed Consolidated Statement of Operations. Total costs from inception of the program to March 31, 2023 were approximately $78.8 million. There were no Restructuring and other transformation costs related to Project Matterhorn for the three months ended March 31, 2022.
CASH FLOWS
The following is a summary of our cash balances and cash flows (in thousands) as of and for the three months ended March 31,

| 2023 |  | 2022
Cash Flows from Operating Activities | $ | 128,808 |  |  | $ | 54,506 |
Cash Flows from Investing Activities | (272,543) |  |  | (889,754) |
Cash Flows from Financing Activities | 149,901 |  |  | 771,553 |
Cash and Cash Equivalents, End of Period | 146,442 |  |  | 195,660 |

A. CASH FLOWS FROM OPERATING ACTIVITIES
For the three months ended March 31, 2023, net cash flows provided by operating activities increased by $74.3 million compared to the prior year period, primarily due to an increase in cash from working capital of $78.0 million, primarily related to the timing of accrued expenses and collections of accounts receivable, partially offset by a decrease in net income (excluding non-cash charges) of $3.7 million.
B. CASH FLOWS FROM INVESTING ACTIVITIES
Our significant investing activity during the three months ended March 31, 2023 included cash paid for capital expenditures of $265.9 million. Additional details of our capital spending are included in the "Capital Expenditures" section below.
C. CASH FLOWS FROM FINANCING ACTIVITIES
Our significant financing activities during the three months ended March 31, 2023 included:
•Net proceeds of $358.7 million primarily associated with borrowings under the Revolving Credit Facility.
•Payment of dividends in the amount of $186.5 million on our common stock.

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CAPITAL EXPENDITURES
The following table presents our capital spend for the three months ended March 31, 2023 and 2022, organized by the type of the spending as described in our Annual Report (in thousands):

| THREE MONTHS ENDED MARCH 31,
NATURE OF CAPITAL SPEND | 2023 |  | 2022
Growth Investment Capital Expenditures: |  |  |
Data Center | $ | 202,406 |  |  | $ | 82,159 |
Real Estate | 55,903 |  |  | 27,290 |
Innovation and Other | 15,536 |  |  | 6,020 |
Total Growth Investment Capital Expenditures | 273,845 |  |  | 115,469 |
Recurring Capital Expenditures: |  |  |
Real Estate | 5,369 |  |  | 7,541 |
Non-Real Estate | 19,801 |  |  | 24,776 |
Data Center | 2,493 |  |  | 2,468 |
Total Recurring Capital Expenditures | 27,663 |  |  | 34,785 |
Total Capital Spend (on accrual basis) | 301,508 |  |  | 150,254 |
Net (decrease) increase in prepaid capital expenditures | (766) |  |  | 1,051 |
Net (increase) decrease in accrued capital expenditures | (34,836) |  |  | 9,745 |
Total Capital Spend (on cash basis) | $ | 265,906 |  |  | $ | 161,050 |

Excluding capital expenditures associated with potential future acquisitions, we expect total capital expenditures of approximately $1,000.0 million for the year ending December 31, 2023. Of this, we expect our capital expenditures for growth investment to be approximately $855.0 million, and our recurring capital expenditures to approach $145.0 million.
DIVIDENDS
See Note 8 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for a listing of dividends that we declared during the first three months of 2023 and fiscal year 2022.
On May 4, 2023, we declared a dividend to our stockholders of record as of June 15, 2023 of $0.6185 per share, payable on July 6, 2023.

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FINANCIAL INSTRUMENTS AND DEBT
Financial instruments that potentially subject us to credit risk consist principally of cash and cash equivalents (including money market funds) and accounts receivable. The only significant concentration of liquid investments as of March 31, 2023 is related to cash and cash equivalents held in money mark funds. See Note 2.e. to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for information on our money market funds.
Long-term debt as of March 31, 2023 is as follows (in thousands):

| MARCH 31, 2023
| DEBT (INCLUSIVE OF DISCOUNT) |  | UNAMORTIZED DEFERRED FINANCING COSTS |  | CARRYING AMOUNT
Revolving Credit Facility(1) | $ | 1,439,000 |  |  | $ | (5,687) |  |  | $ | 1,433,313 |
Term Loan A(1) | 237,500 |  |  | — |  |  | 237,500 |
Term Loan B(1) | 664,379 |  |  | (3,434) |  |  | 660,945 |
Australian Dollar Term Loan | 197,929 |  |  | (585) |  |  | 197,344 |
UK Bilateral Revolving Credit Facility | 173,153 |  |  | — |  |  | 173,153 |
3 7/8% GBP Senior Notes due 2025 (the "GBP Notes") | 494,722 |  |  | (2,413) |  |  | 492,309 |
4 7/8% Senior Notes due 2027 (the "4 7/8% Notes due 2027")(2) | 1,000,000 |  |  | (6,399) |  |  | 993,601 |
5 1/4% Senior Notes due 2028 (the "5 1/4% Notes due 2028")(2) | 825,000 |  |  | (5,904) |  |  | 819,096 |
5% Senior Notes due 2028 (the "5% Notes due 2028")(2) | 500,000 |  |  | (3,859) |  |  | 496,141 |
4 7/8% Senior Notes due 2029 (the "4 7/8% Notes due 2029")(2) | 1,000,000 |  |  | (9,403) |  |  | 990,597 |
5 1/4% Senior Notes due 2030 (the "5 1/4% Notes due 2030")(2) | 1,300,000 |  |  | (11,031) |  |  | 1,288,969 |
4 1/2% Senior Notes due 2031 (the "4 1/2% Notes")(2) | 1,100,000 |  |  | (9,850) |  |  | 1,090,150 |
5% Senior Notes due 2032 (the "5% Notes due 2032") | 750,000 |  |  | (12,185) |  |  | 737,815 |
5 5/8% Senior Notes due 2032 (the "5 5/8% Notes")(2) | 600,000 |  |  | (5,421) |  |  | 594,579 |
Real Estate Mortgages, Financing Lease Liabilities and Other | 434,283 |  |  | (522) |  |  | 433,761 |
Accounts Receivable Securitization Program | 325,000 |  |  | (477) |  |  | 324,523 |
Total Long-term Debt | 11,040,966 |  |  | (77,170) |  |  | 10,963,796 |
Less Current Portion | (101,608) |  |  | — |  |  | (101,608) |
Long-term Debt, Net of Current Portion | $ | 10,939,358 |  |  | $ | (77,170) |  |  | $ | 10,862,188 |

(1)Collectively, the “Credit Agreement”.
(2)Collectively, the "Parent Notes".
See Note 7 to Notes to Consolidated Financial Statements included in our Annual Report and Note 6 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding our long-term debt.
LETTERS OF CREDIT
As of March 31, 2023, we had outstanding letters of credit totaling $39.8 million, of which $3.9 million reduce our borrowing capacity under the Revolving Credit Facility. The letters of credit expire at various dates between June 2023 and July 2025.

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DEBT COVENANTS
The Credit Agreement, our bond indentures and other agreements governing our indebtedness contain certain restrictive financial and operating covenants, including covenants that restrict our ability to complete acquisitions, pay cash dividends, incur indebtedness, make investments, sell assets and take other specified corporate actions. The covenants do not contain a rating trigger. Therefore, a change in our debt rating would not trigger a default under the Credit Agreement, our bond indentures or other agreements governing our indebtedness. The Credit Agreement requires that we satisfy a net total lease adjusted leverage ratio and a fixed charge coverage ratio on a quarterly basis and our bond indentures require that, among other things, we satisfy a leverage ratio (not lease adjusted) or a fixed charge coverage ratio (not lease adjusted), as a condition to taking actions such as paying dividends and incurring indebtedness.
The Credit Agreement uses earnings before interest, taxes, depreciation and amortization and rent expense ("EBITDAR") based calculations and the bond indentures use earnings before interest, taxes, depreciation and amortization ("EBITDA") based calculations as the primary measures of financial performance for purposes of calculating leverage and fixed charge coverage ratios. The EBITDAR- and EBITDA-based leverage calculations include our consolidated subsidiaries, other than those we have designated as "Unrestricted Subsidiaries" as defined in the Credit Agreement and bond indentures. Generally, the Credit Agreement and the bond indentures use a trailing four fiscal quarter basis for purposes of the relevant calculations and require certain adjustments and exclusions for purposes of those calculations, which make the calculation of financial performance for purposes of those calculations under the Credit Agreement and bond indentures not directly comparable to Adjusted EBITDA as presented herein. These adjustments can be significant. For example, the calculation of financial performance under the Credit Agreement and certain of our bond indentures includes (subject to specified exceptions and caps) adjustments for non-cash charges and for expected benefits associated with (i) completed acquisitions, (ii) certain executed lease agreements associated with our data center business that have yet to commence, and (iii) restructuring and other strategic initiatives. The calculation of financial performance under our other bond indentures includes, for example, adjustments for non-cash charges and for expected benefits associated with (i) completed acquisitions and (ii) events that are extraordinary, unusual or non-recurring.
Our leverage and fixed charge coverage ratios under the Credit Agreement as of March 31, 2023 are as follows:

| MARCH 31, 2023 |  |  |  | MAXIMUM/MINIMUM ALLOWABLE
Net total lease adjusted leverage ratio | 5.1 |  |  |  |  | Maximum allowable of 7.0
Fixed charge coverage ratio | 2.4 |  |  |  |  | Minimum allowable of 1.5

We are in compliance with our leverage and fixed charge coverage ratios under the Credit Agreement, our bond indentures and other agreements governing our indebtedness as of March 31, 2023. Noncompliance with these leverage and fixed charge coverage ratios would have a material adverse effect on our financial condition and liquidity.
Our ability to pay interest on or to refinance our indebtedness depends on our future performance, working capital levels and capital structure, which are subject to general economic, financial, competitive, legislative, regulatory and other factors which may be beyond our control. There can be no assurance that we will generate sufficient cash flow from our operations or that future financings will be available on acceptable terms or in amounts sufficient to enable us to service or refinance our indebtedness or to make necessary capital expenditures.
DERIVATIVE INSTRUMENTS
INTEREST RATE SWAP AGREEMENTS
In November 2022, we entered into a forward-starting interest rate swap agreement to limit our exposure to changes in interest rates on future borrowings under our Virginia Credit Agreement (as defined in Note 7 to Notes to Consolidated Financial Statements included in our Annual Report). The forward-starting interest rate swap agreement commences in July 2023 and expires in October 2025. As of both March 31, 2023 and December 31, 2022, we have $4.8 million in notional value outstanding on this forward-starting interest rate swap agreement.
In July 2019, we entered into forward-starting interest rate swap agreements to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness. These forward-starting interest rate swap agreements commenced in March 2022. As of both March 31, 2023 and December 31, 2022, we have $350.0 million in notional value outstanding on these interest rate swap agreements, which expire in March 2024.
We have designated each of the interest rate swap agreements described above as cash flow hedges. These interest rate swap agreements are marked to market at the end of each reporting period, representing the fair values of the interest rate swap agreements, and any changes in fair value are recognized as a component of Accumulated other comprehensive items, net. Unrealized gains are recognized as assets, while unrealized losses are recognized as liabilities.

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CROSS-CURRENCY SWAP AGREEMENTS
We utilize cross-currency interest rate swaps to hedge the variability of exchange rate impacts between the United States dollar and the Euro. As of both March 31, 2023 and December 31, 2022, we have approximately $469.2 million in notional value outstanding on cross-currency interest rate swaps with maturity dates ranging from August 2023 through February 2026.
We have designated these cross-currency swap agreements as hedges of net investments in certain of our Euro denominated subsidiaries and they require an exchange of the notional amounts at maturity. These cross-currency swap agreements are marked to market at the end of each reporting period, representing the fair values of the cross-currency swap agreements, and any changes in fair value are recognized as a component of Accumulated other comprehensive items, net. Unrealized gains are recognized as assets while unrealized losses are recognized as liabilities. The excluded component of our cross-currency swap agreements is recorded in Accumulated other comprehensive items, net and amortized to interest expense on a straight-line basis.
INVESTMENTS
In April 2021, we closed on an agreement to form a joint venture (the "Web Werks JV") with the shareholders of Web Werks India Private Limited ("Web Werks"), a colocation data center provider in India. Through December 31, 2022, we made two investments totaling approximately 7,500.0 million Indian rupees (or approximately $96.2 million, based upon the exchange rates between the United States dollar and Indian rupee on the closing date of each investment) in exchange for a noncontrolling interest in the form of convertible preference shares in the Web Werks JV. Under the terms of the original Web Werks JV shareholder agreement, we were required to make an additional investment of 3,750.0 million Indian rupees by May 2023. In April 2023, the original Web Werks JV shareholder agreement was amended to extend the period by which the investment is required to be made to May 2024.
JOINT VENTURE SUMMARY
The following joint ventures are accounted for as equity method investments and are presented as a component of Other within Other assets, net in our Condensed Consolidated Balance Sheets. The carrying values and equity interests in our joint ventures at March 31, 2023 and December 31, 2022 are as follows (in thousands):

| March 31, 2023 |  | DECEMBER 31, 2022
| CARRYING VALUE |  | EQUITY INTEREST |  | CARRYING VALUE |  | EQUITY INTEREST
Web Werks JV | $ | 98,637 |  |  | 53.58 | % |  | $ | 98,278 |  |  | 53.58 | %
Joint venture with AGC Equity Partners | 36,579 |  |  | 20.00 | % |  | 37,194 |  |  | 20.00 | %
Joint venture with Clutter, Inc. | 50,712 |  |  | 26.73 | % |  | 54,172 |  |  | 26.73 | %

Additionally, we have a loan receivable with the Frankfurt JV of approximately $22.8 million, which is included as a component of Other within Other assets, net within our Condensed Consolidated Balance Sheet at March 31, 2023.

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ITEM 4. CONTROLS AND PROCEDURES
DISCLOSURE CONTROLS AND PROCEDURES
The term "disclosure controls and procedures" is defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These rules refer to the controls and other procedures of a company that are designed to ensure that information is recorded, processed, accumulated, summarized, communicated and reported to management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding what is required to be disclosed by a company in the reports that it files under the Exchange Act. As of March 31, 2023 (the "Evaluation Date"), we carried out an evaluation, under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, of the effectiveness of our disclosure controls and procedures. Based upon that evaluation, our chief executive officer and chief financial officer concluded that, as of the Evaluation Date, our disclosure controls and procedures are effective.
CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
Our management, with the participation of our principal executive officer and principal financial officer, is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act. Our internal control system is designed to provide reasonable assurance to our management and board of directors regarding the preparation and fair presentation of published financial statements.
During the three months ended March 31, 2023, we implemented a new version of our Enterprise Resource Planning system in certain markets as a part of an ongoing system upgrade. We took the necessary steps to monitor and maintain appropriate internal control over financial reporting during this upgrade. We also conducted evaluations prior to and after the implementation of the new system, and confirmed that our internal control over financial reporting remains effective.
Except as described above, there were no changes in our internal control over financial reporting that occurred during the quarter ended March 31, 2023, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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Part II. Other Information

PART II. OTHER INFORMATION
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
We did not sell any unregistered equity securities during the three months ended March 31, 2023, nor did we repurchase any shares of our common stock during the three months ended March 31, 2023.
ITEM 6. EXHIBITS
(A) EXHIBITS
Certain exhibits indicated below are incorporated by reference to documents we have filed with the SEC.

EXHIBIT NO. |  | DESCRIPTION
31.1 |  | Rule 13a-14(a) Certification of Chief Executive Officer. (Filed herewith.)
31.2 |  | Rule 13a-14(a) Certification of Chief Financial Officer. (Filed herewith.)
32.1 |  | Section 1350 Certification of Chief Executive Officer. (Furnished herewith.)
32.2 |  | Section 1350 Certification of Chief Financial Officer. (Furnished herewith.)
101.INS |  | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH |  | Inline XBRL Taxonomy Extension Schema Document.
101.CAL |  | Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF |  | Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB |  | Inline XBRL Taxonomy Label Linkbase Document.
101.PRE |  | Inline XBRL Taxonomy Extension Presentation Linkbase Document.

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

| IRON MOUNTAIN INCORPORATED
| By: | /s/ DANIEL BORGES
|  | Daniel Borges Senior Vice President, Chief Accounting Officer

Dated: May 4, 2023

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