Iron Mountain
Annual Report 2021

Plain-text annual report

2021 Annual Financial Report Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2021 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 (State or other jurisdiction of incorporation) One Federal Street, Boston, Massachusetts (Address of principal executive offices) 23-2588479 (I.R.S. Employer Identification No.) 02110 (Zip Code) 617-535-4766 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of Each Class Trading Symbols(s) Name of Exchange on Which Registered Common Stock, $.01 par value per share IRM New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒ 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, 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 Non-accelerated filer Emerging growth company ☒ ☐ ☐ Accelerated filer Smaller reporting company ☐ ☐ Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report .Yes ☒ No ☐ 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 June 30, 2021, the aggregate market value of the Common Stock of the registrant held by non-affiliates of the registrant was approximately $12.1 billion based on the closing price on the New York Stock Exchange on such date. Number of shares of the registrant’s Common Stock at February 18, 2022: 289,830,119 DOCUMENTS INCORPORATED BY REFERENCE Certain information required in Items 10, 11, 12, 13 and 14 of Part III of this Annual Report on Form 10-K (the “Annual Report”) is incorporated by reference from our definitive Proxy Statement for our 2022 Annual Meeting of Stockholders (our “Proxy Statement”) to be filed with the Securities and Exchange Commission (the “SEC”) within 120 days after the close of the fiscal year ended December 31, 2021. Table of Contents IRON MOUNTAIN INCORPORATED 2021 FORM 10-K ANNUAL REPORT TABLE OF CONTENTS PART I PART II 01 09 20 21 25 25 27 27 27 58 59 59 60 62 63 ITEM 1. BUSINESS ITEM 1A. RISK FACTORS ITEM 1B. UNRESOLVED STAFF COMMENTS ITEM 2. PROPERTIES ITEM 3. LEGAL PROCEEDINGS ITEM 4. MINE SAFETY DISCLOSURES ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER ITEM 6. MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES [RESERVED.] ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE ITEM 9A. CONTROLS AND PROCEDURES ITEM 9B. OTHER INFORMATION ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS PART III 65 65 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE ITEM 11. EXECUTIVE COMPENSATION 65 65 65 ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES PART IV 67 138 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES ITEM 16. FORM 10-K SUMMARY Table of Contents References in this Annual Report on Form 10-K for the year ended December 31, 2021 (this "Annual Report") to “the Company,” “Iron Mountain,” “we,” “us” or “our” include Iron Mountain Incorporated, a Delaware corporation, and its predecessor, as applicable, and its consolidated subsidiaries, unless the context indicates otherwise. CAUTIONARY NOTE REGARDING FORWARD- LOOKING STATEMENTS We have made statements in this Annual 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 operations, economic performance, financial condition, goals, beliefs, future growth strategies, investment objectives, plans and current expectations, such as our (1) expectations and assumptions regarding the impact of the COVID-19 (as defined below) pandemic on us and our customers, including on our businesses, financial position, results of operations and cash flows, (2) commitment to future dividend payments, (3) expected change in volume of records stored with us, (4) expected growth in revenue, organic revenue, including 2022 consolidated organic storage rental revenue growth rate and consolidated organic total revenue growth rate, and Adjusted EBITDA (as defined below), (5) expectations that profits will increase in our growth portfolio, including our higher-growth markets, (6) expectations related to our revenue management programs and continuous improvement initiatives, (7) expectations related to monetizing our owned industrial real estate assets as part of our capital recycling program, (8) expected ability to identify and complete acquisitions and drive returns on invested capital, (9) anticipated capital expenditures, (10) expected benefits related to Project Summit (as defined below), and (11) other forward-looking statements related to our business, results of operations and financial condition. 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" 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: • the severity and duration of the COVID-19 pandemic and its effects on the global economy, including its effects on us, the markets we serve and our customers and the third parties with whom we do business within those markets; • our ability to remain qualified for taxation as a real estate investment trust for United States federal income tax purposes (“REIT”); • 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; • our ability or inability to execute our strategic growth plan, including our ability to invest according to plan, incorporate new digital information technologies into our offerings, achieve satisfactory returns on new product offerings, continue our revenue management, expand internationally, complete acquisitions on satisfactory terms, integrate acquired companies efficiently and grow our business through joint ventures; • changes in the amount of our capital expenditures; • our ability to raise debt or equity capital and changes in the cost of our debt; • • the cost and our ability to comply with laws, regulations and customer demands, including those relating to data security and privacy issues, as well as fire and safety and environmental standards; the impact of litigation or disputes that may arise in connection with incidents in which we fail to protect our customers’ information or our internal records or information technology (“IT”) systems and the impact of such incidents on our reputation and ability to compete; • changes in the price for our storage and information management services relative to the cost of providing such storage and information management services; • changes in the political and economic environments in the countries in which our international subsidiaries operate and changes in the global political climate, particularly as we consolidate operations and move records and data across borders; • our ability to comply with our existing debt obligations and restrictions in our debt instruments; • • • • other trends in competitive or economic conditions affecting our financial condition or results of operations not presently 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; failures in our adoption of new IT systems; • 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 this Annual Report. Except as required by law, we undertake no obligation to update any forward-looking statements appearing in this report. Table of Contents Table of Contents PART I ITEM 1. BUSINESS. BUSINESS OVERVIEW We help organizations around the world protect their information, reduce storage costs, comply with regulations, facilitate corporate disaster recovery, and better use their information and IT infrastructure for business advantages, regardless of its format, location or life cycle stage. We do this by storing physical records and data backup media, offering information management solutions, and providing data center space for enterprise-class colocation and hyperscale deployments. We offer comprehensive records and information management services and data management services, along with the expertise and experience to address complex storage and information management challenges such as rising storage rental costs, legal and regulatory compliance, and disaster recovery requirements. We provide secure and reliable data center facilities to protect digital information and ensure the continued operation of our customers’ IT infrastructure, with reliable and flexible deployment options. Founded in an underground facility near Hudson, New York in 1951, Iron Mountain Incorporated, a Delaware corporation, has approximately 225,000 customers in a variety of industries in 63 countries around the world, as of December 31, 2021. We currently serve customers across an array of market verticals - commercial, legal, financial, healthcare, insurance, life sciences, energy, business services, entertainment and government organizations, including approximately 95% of the Fortune 1000. As of December 31, 2021, we employed approximately 25,000 people. We are listed on the New York Stock Exchange (the “NYSE”) and are a constituent of the Standard & Poor’s 500 Index and the MSCI REIT index. As of December 31, 2021, we were number 605 on the Fortune 1000. We have been organized and have operated as a REIT beginning with our taxable year ended December 31, 2014. BUSINESS STRATEGY OVERVIEW Our company has been a market leader in the physical ecosystem supporting information storage and retrieval, as most businesses have relied on paper documents or computer tapes to store their valuable information. Over time, customers are increasing their digital information, with the new information storage ecosystem being a hybrid of physical and digital mediums. We are a different company than the one we have been historically. The strategic journey we are on is driving this change and our focus remains on four pillars outlined below to grow our business. Continued growth in physical storage through revenue management as well as volume growth achieved in faster growing emerging markets and consumer and adjacent business growth in developed markets • We are establishing and enhancing leadership positions in higher-growth markets such as central and eastern Europe, Latin America, Asia and Africa, through both organic expansion and acquisitions in countries where GDP growth is faster and outsourcing information management is at an earlier stage. • We continue to identify, acquire, incubate and scale complementary businesses and products to support our long-term growth objectives and drive solid returns on invested capital. These opportunities include our digital services, Secure IT Asset Disposition and our Entertainment Services, Fine Arts and Consumer Storage (each as defined below) businesses. Utilizing our global scale as well as 70 years of customer trust to deliver differentiated data center offerings • We have made significant progress in scaling our Global Data Center Business through acquisitions and organic growth, with 19 operating data centers across 16 global markets. • As of December 31, 2021, approximately 89% of our data center capacity was leased. With total potential capacity of 604 megawatts ("MW") in land and buildings currently owned or operated by us, we are among the largest global data center operators. Developing and offering new products and services that allow our customers to achieve reliable and secure information management solutions in an increasingly hybrid physical and digital world • Our customers are faced with navigating a more complex regulatory environment, and one in which hybrid physical and digital solutions have become the norm. Our strategy is underpinned by our persistent focus on best- in-class customer experience, as we continue to seek innovative solutions to help our customers progress on their journey from physical storage to a digital ecosystem. IRON MOUNTAIN 2021 FORM 10-K 1 Table of Contents Part I Increased investment in our business and customer-centric solutions • We have established an investment strategy to fuel our growth. The investments are enabled by the success of Project Summit and informed by our established leadership position in the physical storage business, expanding services, and our significant progress in the Global Data Center business. PROJECT SUMMIT In October 2019, we announced our global program ("Project Summit") designed to better position us for future growth and achievement of our strategic objectives. We expanded Project Summit during the first quarter of 2020 to include additional opportunities to streamline our business and operations, as well as accelerated the timing of certain opportunities previously identified. As a result of this initiative, we simplified our global structure, rebalanced resources to focus on higher growth areas, realigned our management structure to create a more dynamic, agile organization, and made investments to enhance the customer experience. All Project Summit activities were completed in 2021, resulting in $375.0 million in annual Adjusted EBITDA benefits of which $165.0 million were delivered in 2020 and $160.0 million were delivered in 2021, with the remainder to come in 2022. Project Summit charges totaled approximately $450.0 million since the program's inception. For further details on Project Summit, see the "Overview" section of “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Annual Report. BUSINESS SEGMENTS The amount of revenues derived from our business segments and other relevant data, including financial information about geographic areas and product and service lines, for the years ended December 31, 2021, 2020 and 2019, are set forth in Note 11 to Notes to Consolidated Financial Statements included in this Annual Report. GLOBAL RIM BUSINESS The Global RIM Business segment includes several distinct offerings. Records Management, stores physical records and provides healthcare information services, vital records services, courier operations, and the collection, handling and disposal of sensitive documents (collectively, “Records Management”) for customers in 63 countries around the globe. As of December 31, 2021, we stored approximately 740 million cubic feet of hardcopy records. Data Management, provides storage and rotation of backup computer media as part of corporate disaster recovery plans, including service and courier operations (“Data Protection & Recovery”); server and computer backup services; and related services offerings, (collectively, “Data Management”). Global Digital Solutions (“GDS”), develops, implements and supports comprehensive storage and information management solutions for the complete lifecycle of our customers’ information, including the management of physical records, conversion of documents to digital formats and digital storage of information, primarily in the United States and Canada. Secure Shredding, includes the scheduled pick-up of office records that customers accumulate in specially designed secure containers we provide and is a natural extension of our hardcopy records management operations, completing the lifecycle of a record. Complementary to our shredding operations is the sale of the resultant waste paper to third-party recyclers. Through a combination of shredding facilities and mobile shredding units consisting of custom built trucks, we are able to offer secure shredding services to our customers throughout the United States, Canada and South Africa. Secure IT Asset Disposition ("Secure ITAD"), a component of asset life cycle management, provides secure disposition of obsolete IT assets with: industry leading secure logistics and chain of custody practices, environmentally-responsible asset processing and recycling, and data sanitization and asset refurbishment services that enable value recovery through asset remarketing. Our service focuses on protecting and eradicating customer data while maintaining strong, audible, and transparent chain of custody practices. We are able to offer this service in over 30 countries. Consumer Storage, provides on-demand, valet storage for consumers (“Consumer Storage”) across 31 markets in North America through a strategic partnership that utilizes data analytics and machine learning to provide effective customer acquisition and a convenient and seamless consumer storage experience. 2 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part I GLOBAL DATA CENTER BUSINESS The Global Data Center Business segment provides enterprise-class data center facilities and hyperscale-ready capacity to protect mission-critical assets and ensure the continued operation of our customers’ IT infrastructure, with secure, reliable and flexible data center options. The world’s most heavily regulated organizations have trusted us with their data centers for over 15 years, and as of December 31, 2021, five of the top 10 global cloud providers were Iron Mountain Data Center customers. As of December 31, 2021, our Global Data Center Business footprint spans nine markets in the United States and seven international markets. UNITED STATES Denver, Colorado Kansas City, Missouri Boston, Massachusetts Boyers, Pennsylvania Manassas, Virginia Edison, New Jersey Columbus, Ohio Phoenix and Scottsdale, Arizona INTERNATIONAL MARKETS Amsterdam London Singapore Frankfurt (directly and through an unconsolidated joint venture) Mumbai (through an unconsolidated joint venture) Pune (through an unconsolidated joint venture) Noida (through an unconsolidated joint venture) CORPORATE AND OTHER BUSINESS The Corporate and Other Business segment consists primarily of Adjacent Businesses and other corporate items. Adjacent Businesses is comprised of (i) entertainment and media which helps industry clients store, safeguard and deliver physical media of all types, and provides digital content repository systems that house, distribute, and archive key media assets, throughout the United States, Canada, France, China - Hong Kong S.A.R., the Netherlands and the United Kingdom (“Entertainment Services”) and (ii) technical expertise in the handling, installation and storing of art in the United States, Canada and Europe (“Fine Arts”). Our Corporate and Other Business segment also includes costs related to executive and staff functions, including finance, human resources and IT, which benefit the enterprise as a whole. IRON MOUNTAIN 2021 FORM 10-K 3 Table of Contents Part I BUSINESS ATTRIBUTES Our business has the following attributes: Large, Diversified, Global Business The world’s most heavily regulated organizations trust us with the storage of their records. Our mission-critical storage offerings and related services generated approximately $4.5 billion in annual revenue in 2021. Our business has a highly diverse customer base of approximately 225,000 customers - with no single customer accounting for more than approximately 1% of revenue during the year ended December 31, 2021 - and operates in 63 countries globally. This presents a significant cross-sell opportunity for our Global Data Center, Global Digital Solutions and Global Secure IT Asset Disposition businesses. Recurring, Durable Revenue Stream We generate a majority of our revenues from contracted storage rental fees, via agreements that generally range from one to five years in length. Historically, in our Records Management business, we have seen strong customer retention (of approximately 98%) and solid physical records retention; more than 50% of physical records that entered our facilities 15 years ago are still with us today. We have also seen strong customer retention in our Global Data Center Business. Comprehensive Information Management Solution As an S&P 500 REIT with approximately 1,450 locations globally and with offerings spanning physical storage, digitization solutions and digital storage, we are positioned to provide a holistic offering to our customers. We are able to cater to our customers’ physical and digital needs and to help guide their digital transformation journey. Significant Owner and Operator of Real Estate We operate approximately 95 million square feet of real estate worldwide. Our owned real estate footprint spans nearly 25 million square feet and is concentrated in major metropolitan statistical areas in North America, Western Europe and Latin America. Limited Revenue Cyclicality Historically, economic downturns have not significantly affected our storage rental business. Due to the durability of our total global physical volumes, the success of our revenue management initiatives, and the growth of our Global Data Center Business, we believe we can continue to grow organic storage rental revenue over time. Shifting Revenue Mix We have identified a number of areas where we see opportunity for growth as we position ourselves to unlock greater value for our customers. These business lines, including Data Center, Fine Arts and Entertainment Services, Consumer Storage and Secure IT Asset Disposition, represent markets with strong secular growth. 4 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part I In addition, our Global Data Center business has the following attributes: Large Data Center Platform with Significant Expansion Opportunity As of December 31, 2021, we had 177 MW of leasable capacity with an additional 427 MW under construction or held for development. Differentiated Compliance and Security Efficient Access and Flexibility 100% Green Powered Data Centers COMPETITION We offer comprehensive compliance support and physical and cyber security. Our Security-in-Depth approach to security includes a combination of technical and human security measures, and experienced senior military and public sector security leaders oversee our security. As of December 31, 2021, our data centers comply with one of the most comprehensive compliance programs in the industry, including enterprise-wide certified ISO 14001 and 50001 environmental and energy management systems. We also report globally on service organizational controls, as well as global ISO 27001 certification, and PCI-DSS compliance, and met FISMA HIGH and FedRAMP controls in the United States. We have the ability to provide customers with a range of deployment options from one cabinet to an entire building, leveraging our global portfolio of hyperscale-ready and underground data centers. We also provide access to numerous carriers, cloud providers and peering exchanges with migration support and IT. As of December 31, 2021, our Global Data Center platform was powered by 100% renewable energy, with carbon credit assistance and low power usage effectiveness (“PUE"). We are one of the top 30 buyers of renewable energy among the Fortune 1000 and now offer the Green Power Pass, which allows customers to include the power they consume at any Iron Mountain data centers as green power in their CDP, RE100, GRI, or other sustainability reporting. We compete with thousands of storage and information management services providers around the world as well as storage and information management services managed and operated internally by organizations. We believe that competition for records and information customers is based on price, reputation and reliability, quality and security of storage, quality of service and scope and scale of technology. While the majority of our competitors operate in only one market or region, we believe we provide a differentiated global offering that competes effectively in these areas. We also compete with numerous data center developers, owners and operators, many of whom own properties similar to ours in some of the same metropolitan areas where our facilities are located. We believe that competition for data center customers is based on availability of power, security considerations, location, connectivity and rental rates, and we generally believe we compete effectively in each of these areas. Additionally, we believe our strong brand, global footprint and excellent commercial relationships enable us to compete successfully and provide significant cross-sell opportunities with our existing customer base. HUMAN CAPITAL MANAGEMENT EMPLOYEES As of December 31, 2021, we employed approximately 9,000 employees in the United States and approximately 16,000 employees outside of the United States. As of December 31, 2021, approximately 500 employees were represented by unions in North America and approximately 1,250 employees were represented by unions in Latin America. All union employees are currently under renewed labor agreements or operating under an extension agreement. BENEFIT PROGRAMS We provide our employees with benefits that are designed to support their overall physical, financial, emotional and social well- being. These benefits vary by location but may include health and welfare benefits, paid time off, and programs to support financial security. Additionally, employees are able to access emotional well-being resources through global employee assistance programs. Certain unionized employees receive benefits through unions and are not eligible to participate in our benefit programs. In addition to base compensation and other usual benefits, a significant portion of full-time employees participate in some form of incentive- based compensation program that provides payments based on revenues, profits or attainment of specific objectives for the unit in which they work. IRON MOUNTAIN 2021 FORM 10-K 5 Table of Contents Part I DIVERSITY, EQUITY AND INCLUSION At Iron Mountain, we believe that an inclusive environment with diverse teams produces more creative solutions, results in better, more innovative products and services and is crucial to our efforts to attract and retain key talent. As one of our five core company values, Promoting Including and Teamwork is a behavior all of our employees are expected to demonstrate every day. We have prioritized diversity, equity and inclusion ("DEI") as part of our corporate-wide strategic goals. Steps we have taken to create and sustain a more diverse, equitable and inclusive environment include: hiring a Global Chief Diversity, Equity & Inclusion Officer with significant DEI experience to lead our cultural transformation, the path to creating an environment of inclusiveness and belonging. We review and revise our systems, policies and processes to assure that our structures facilitate inclusiveness and accountability. We ensure that our recruiting efforts reflect our diversity goals and we launch, expand and support our Employee Resource Groups, who meet and connect on shared characteristics and life experiences that can prove impactful to our business, our customers and our employees. COMPANY CULTURE We recognize that an inspired culture is foundational to how we deliver on our purpose and create sustained growth and value for our shareholders. Iron Mountain's culture is deeply rooted in its enduring values: Act with Integrity, Own Safety and Security, Build Customer Value, Take Ownership and Promote Inclusion and Teamwork. While Iron Mountain is a culture of learning, collaboration, diversity and well-being, we know that culture overall comes down to what it feels like to work at Iron Mountain. This is why we celebrate our employees who consistently demonstrate Iron Mountain's values in measurable ways while inspiring others to do the same. We commit significant resources to sustaining a culture that enables innovation and facilitates trust, engagement, belonging and performance. We regularly survey our employees on a range of topics to measure our effectiveness and to obtain their views. In addition, headcount data and cost analyses offer insights into how and where our employees work. We use all of this information to refine our approach when necessary to drive increased employee engagement and success. COMMUNITY INVOLVEMENT We are committed to integrating responsible and sustainable practices throughout our organization to help our operations to have a positive impact on the environment and the communities in which we operate. We aim to give back to the communities where we live and work, and believe that this commitment helps in our efforts to attract and retain employees. We offer philanthropic support to our global community through our Living Legacy Initiative, which is our commitment to help preserve and make accessible cultural and historical information and artifacts. We encourage volunteerism in the communities in which we live and work through our Moving Mountains volunteer program, offering paid time off for employees to help community-based and civic-minded organizations. INSURANCE For strategic risk transfer purposes, we maintain a comprehensive insurance program with insurers that we believe to be reputable and that have adequate capitalization in amounts that we believe to be appropriate. Property insurance is purchased on a comprehensive basis, including flood and earthquake (including excess coverage), subject to certain policy conditions, sublimits and deductibles. Property is insured based upon the replacement cost of real and personal property, including leasehold improvements, business income loss and extra expense. Other types of insurance that we carry, which are also subject to certain policy conditions, sublimits and deductibles, include medical, workers’ compensation, general liability, umbrella, automobile, professional, warehouse legal liability and directors’ and officers’ liability policies. GOVERNMENT REGULATION We are required to comply with numerous U.S. federal, state, and foreign laws and regulations covering a wide variety of subject matters which may have a material effect on our capital expenditures, earnings and competitive position. For example, some of our current and formerly owned or leased properties were previously used by entities other than us for industrial or other purposes, or were affected by waste generated from nearby properties, that involved the use, storage, generation and/or disposal of hazardous substances and wastes, including petroleum products. In some instances, this prior use involved the operation of underground storage tanks or the presence of asbestos-containing materials. Where we are aware of environmental conditions that require remediation, we undertake appropriate activity, in accordance with all legal requirements. Although we have from time to time conducted limited environmental investigations and remedial activities at some of our former and current facilities, we have not undertaken an environmental review of all of our properties, including those we have acquired. We therefore may be potentially liable for environmental cost and may be unable to sell, rent, mortgage or use contaminated real estate owned or leased by us. Under various federal, state and local environmental laws, we may be liable for environmental compliance and remediation costs to address contamination, if any, located at owned and leased properties as well as damages arising from such contamination, whether or not we know of, or were responsible for, the contamination, or the contamination occurred while we owned or leased the property. Environmental conditions for which we might be liable may also exist at properties that we may acquire in the future. In addition, future regulatory action and environmental laws may impose costs for environmental compliance that do not exist today. 6 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part I We transfer a portion of our risk of financial loss due to currently undetected environmental matters by purchasing an environmental impairment liability insurance policy, which covers all owned and leased locations. Coverage is provided for both liability and remediation costs. In addition, we are subject to numerous U.S. federal, state, local and foreign laws and regulations relating to data privacy and cybersecurity, which are complex, change frequently and have tended to become more stringent over time. We devote substantial resources, and may in the future have to devote significant additional resources, to facilitate compliance with these laws and regulations, and to investigate, defend or remedy actual or alleged violations or breaches. Any failure by us to comply with, or remedy any violations or breaches of, these laws and regulations could result in the curtailment of certain of our operations, the imposition of fines and penalties, liability resulting from litigation, restrictions on our ability to carry on or expand our operations, significant costs and expenses and reputational harm. For more information about laws and regulations that could affect our business, see “Item 1A. Risk Factors” included in this Annual Report. CORPORATE SOCIAL RESPONSIBILITY Through our approach to Corporate Social Responsibility, we not only see ourselves as having our own responsibility to society, but also in helping our customers with their own environmental, social and governance (ESG) goals, and helping them gain value, make improvements and save costs. We are committed to responsible, sustainable growth. To that end, we have publicly adopted 20 goals to address our environmental footprint, corporate philanthropy and volunteerism and DEI practices. As signatories of The Climate Pledge, we are on a path to reach net zero carbon emissions by 2040. We are committed to the safety and well-being of our employees and strive to cultivate a culture of inclusion that values diverse perspectives across our global workforce. Iron Mountain and its employees also make a social impact in the communities in which we operate through charitable giving and volunteerism. We have been recognized for our commitment to Corporate Social Responsibility. We ranked 93rd on Newsweek’s 2022 list of America’s Most Responsible Companies. We were a top scorer on the Disability Equality Index in 2020 and 2021. We received a 100% on the Human Rights Campaign Corporate Equality Index for each of the years 2018 through 2022. We are committed to transparent reporting on sustainability and corporate responsibility efforts in accordance with the guidelines of the Global Reporting Initiative. Our corporate responsibility report highlights our progress against key measures of success for our efforts in the community, our environment, and for our people. We are a member of the FTSE4 Good Index, MSCI World ESG Index, MSCI World Climate Change Index and MSCI USA ESG Select Index, each of which include companies that meet globally recognized corporate responsibility standards. A copy of our corporate responsibility report is available on the “About Us” section of our website, www.ironmountain.com, under the heading “Corporate Social Responsibility." We are not including the information contained on or available through our website as part of, or incorporating such information by reference into, this Annual Report. In addition, we continue to work to further align our reporting with the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures to disclose climate-related financial risks and opportunities. STRONG SUSTAINABILITY FOCUS • Green Power Pass solution in Data Center market to help customers manage their carbon footprint. • Part of RE100 Initiative — commitment to using renewable energy sources for 100% of our worldwide electricity. • Founding signatory of the 24/7 Carbon-Free Energy (CFE) Compact committed to consuming carbon-free electricity every hour on every grid where we operate. • 81% of our global electricity use - including 100% of the electricity used to power our Data Center business was from renewable sources in 2020. • Reduced GHG emissions by 62% (since 2016) as part of our Science Based Target and net zero by 2040 commitment. • Received a 100% on the Human Rights Campaign Corporate Equality Index for each of the years 2018 through 2022. IRON MOUNTAIN 2021 FORM 10-K 7 Table of Contents Part I INTERNET WEBSITE Our Internet address is www.ironmountain.com. Under the “Investors” section on our website, we make available, free of charge, our Annual Reports on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) as soon as reasonably practicable after such forms are filed with or furnished to the SEC. We are not including the information contained on or available through our website as a part of, or incorporating such information by reference into, this Annual Report. Copies of our corporate governance guidelines, code of ethics and the charters of our audit, compensation, finance, nominating and governance, risk and safety, and technology committees are available on the “Investors” section of our website, www.ironmountain.com, under the heading “Corporate Governance." 8 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part I ITEM 1A. RISK FACTORS. We face many risks. If any of the events or circumstances described below actually occur, we and our businesses, financial condition or results of operations could suffer, and the trading price of our debt or equity securities could decline. Our current and potential investors should consider the following risks and the information contained under the heading “Cautionary Note Regarding Forward-Looking Statements” before deciding to invest in our securities. BUSINESS RISKS Failure to execute our strategic growth plan may adversely impact our financial condition and results of operations. As part of our strategic growth plan we expect to invest in our existing businesses, including records and information management storage and services businesses in our higher-growth markets, data centers, asset life cycle management and secure information technology asset disposition, consumer storage and other adjacent businesses, and in new businesses, business strategies, products, services, technologies and geographies, and we may selectively divest certain businesses. These initiatives may involve significant risks and uncertainties, including: • our inability to maintain relationships with key customers and suppliers or to execute on our plan to incorporate the digitization of our customers’ records and new digital information technologies into our offerings; • failure to achieve satisfactory returns on new product offerings, acquired companies, joint ventures, growth initiatives, or other investments, particularly in markets where we do not currently operate or have a substantial presence; • our inability to identify suitable companies to acquire, invest in or partner with; • our inability to complete acquisitions or investments on satisfactory terms; • our inability to structure acquisitions or investments in a manner that complies with our debt covenants and is consistent with our leverage ratio goals; • challenges in managing costs to offset the impact of inflationary pressure; • • increased demands on our management, operating systems, internal controls and financial and physical resources and, if necessary, our inability to successfully expand our infrastructure; incurring additional debt necessary to acquire suitable companies or make other growth investments if we are unable to pay the purchase price or make the investment out of working capital or the issuance of our common stock or other equity securities; • our inability to manage the budgeting, forecasting and other process control issues presented by future growth, particularly with respect to operations in countries outside of the United States or in new lines of business; • insufficient revenues to offset expenses and liabilities associated with new investments; • our inability to attract, develop and retain skilled employees to lead and support our strategic growth plan, particularly in new businesses, technologies, products or offerings outside our core competencies; and • challenges in executing on our strategic growth plan within the constraints of our REIT structure, as well as remaining REIT compliant. Our new ventures are inherently risky and we can provide no assurance that such strategies and offerings will be successful in achieving the desired returns within a reasonable timeframe, if at all, and that they will not adversely affect our business, reputation, financial condition, and operating results. We face competition from other companies to grow our business, and, as a result, we may be unable to acquire or invest in, or we may pay a premium purchase price for, data centers, technology and adjacent businesses and businesses in higher-growth markets that support our strategic growth plan, which could have an adverse effect on our results of operations and financial condition. As stored records and tapes become less active our service revenue growth and profits from related services may decline. Our Records Management and Data Management service revenue growth is being negatively impacted by declining activity rates as stored records and tapes are becoming less active and more archival, and these activity levels were further negatively impacted by the COVID-19 pandemic. The amount of information available to customers digitally or in their own information systems has been steadily increasing in recent years, and we believe this trend will continue. As a result, our customers are less likely than they have been in the past to retrieve records and rotate tapes, thereby reducing their activity levels. At the same time, many of our costs related to records and tape related services remain relatively fixed. In addition, our reputation for providing secure information storage is critical to our success, and actions to manage cost structure, such as outsourcing certain transportation, security or other functions, could negatively impact our reputation and adversely affect our business. Ultimately, if we are unable to appropriately align our cost structure with decreased levels of service activity, our operating results could be adversely affected. IRON MOUNTAIN 2021 FORM 10-K 9 Table of Contents Part I Our customers may shift from paper and tape storage to alternative technologies that may shift our revenue mix away from storage revenue. We derive substantial revenues from rental fees for the storage of physical records and computer backup media and from storage related services. Storage volume and/or demand for our traditional storage related services may decline as our customers adopt alternative storage technologies or as retention requirements evolve, which may require significantly less space than traditional physical records and tape storage. To date, our customers’ shift from paper and tape storage to alternative technologies has not accelerated as a result of the COVID-19 pandemic. While volumes in our Global RIM Business segment were relatively steady in 2021 and we expect them to remain relatively consistent in the near term, we can provide no assurance that our customers will continue to store most or a portion of their records as paper documents or as tapes, or that the paper documents or tapes they do store with us will require our storage related services at the same levels as they have in the past. A significant shift by our customers to storage of data through non-paper or non-tape-based technologies, whether now existing or developed in the future, could adversely affect our businesses. In addition, the digitization of records may shift our revenue mix from the more predictable storage revenue to service revenue, which is inherently more volatile. Our future growth depends in part upon our ability to continue to effectively manage and execute on revenue management. Over the past several years, our organic revenue growth has been positively impacted by our ability to effectively introduce, expand and monitor revenue management initially in our more established markets, and subsequently in our higher-growth markets. If we are not able to continue and effectively manage pricing, our results of operations could be adversely affected and we may not be able to execute on our strategic growth plan. Changes in customer behavior with respect to destruction of records stored with us could adversely affect our business, financial condition and results of operations. Over the past several years, our destruction rates, as a percentage of records stored with us, have fluctuated. When destruction rates for records stored with us increase, it has a positive impact on our service revenues in the year of destruction but negatively impacts our longer term storage revenues, adversely affecting our financial condition and results of operations. We and our customers are subject to laws and governmental regulations relating to data privacy and cybersecurity and our customers’ demands in this area are increasing. This may cause us to incur significant expenses and non-compliance with such regulations and demands could harm our business. We are subject to numerous U.S. federal, state, local and foreign laws and regulations relating to data privacy and cybersecurity. These regulations are complex, change frequently and have tended to become more stringent over time. There are also a number of legislative proposals pending before the U.S. Congress, various state legislative bodies and foreign governments concerning data protection that could affect us. In addition, a growing number of U.S. and foreign legislative and regulatory bodies have adopted consumer notification and other requirements if consumer information is accessed by unauthorized persons and additional regulations regarding the use, access, accuracy and security of such information are possible. In the U.S., we are subject to various state laws which provide for disparate notification regimes. In addition, as a result of the continued emphasis on information security and instances in which personal information has been compromised, our customers are requesting that we take increasingly sophisticated measures to enhance security and comply with data privacy regulations, and that we assume higher liability under our contracts. We devote substantial resources, and may in the future have to devote significant additional resources, to facilitate compliance with laws and regulations, our customers’ data privacy and security demands, and to investigate, defend or remedy actual or alleged violations or breaches. Any failure by us to comply with, or remedy any violations or breaches of, laws and regulations or customer requirements could result in the curtailment of certain of our operations, the imposition of fines and penalties, liability resulting from litigation, restrictions on our ability to carry on or expand our operations, significant costs and expenses and reputational harm. 10 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part I Attacks on our internal IT systems could damage our reputation, cause us to lose revenues, and adversely affect our business, financial condition and results of operations. Our reputation for providing secure information storage to customers is critical to the success of our business. Our reputation or brand, and specifically, the trust our customers place in us, could be negatively impacted in the event of perceived or actual failures by us to store information securely. Although we seek to prevent and detect attempts by unauthorized users to gain access to our IT systems, and incur significant costs to do so, our IT and network infrastructure has in the past been and may in the future be vulnerable to attacks by hackers, including state-sponsored organizations with significant financial and technological resources, breaches due to employee error, fraud or malice or other disruptions (including, but not limited to, computer viruses and other malware, denial of service, and ransomware), which may involve a privacy breach requiring us to notify regulators, clients or employees and enlist identity theft protection. Moreover, until we have migrated businesses we acquire onto our IT systems or ensured compliance with our information technology security standards, we have in the past and may in the future face additional risks because of the continued use of predecessor IT systems. We have outsourced, and expect to continue to outsource, certain support services, including cloud storage systems and cloud computing services, to third parties, which has in the past and may in the future subject our IT and other sensitive information to additional risk. In addition, the continuation of remote work arrangements as a result of the COVID-19 pandemic has increased and could further increase our cybersecurity risks. A successful breach of the security of our IT systems could lead to theft or misuse of our customers’ proprietary or confidential information or our employees’ personal information and result in third party claims against us, regulatory penalties, and reputational harm. Although we maintain insurance coverage for various cybersecurity risks, there is no guarantee that all costs or losses incurred will be fully insured. Damage to our reputation could make us less competitive, which could negatively impact our business, financial condition and results of operations. Our business, operations, and financial results have been, and could continue to be, impacted by developments in the COVID-19 pandemic. The COVID-19 pandemic, and the ongoing emergence of variants of the SARS-CoV-2 virus, and the resulting actions taken in response by governments, businesses, and individuals have resulted in, and are expected to continue to result in, substantial increased cyclical impacts to the global economy, including a curtailment of business activities (including changes in demand for a broad variety of goods and services), weakened economic conditions, disruptions in supply, manufacturing and logistics, economic uncertainty and volatility in the financial markets, both in the United States and abroad, as well as reduced service operations and changed business practices for us, our customers, and other third parties with which we do business. Due to the unpredictable and rapidly changing nature of the COVID-19 pandemic, the extent to which it continues to impact us will depend on numerous factors that we are unable to predict and are not within our control, including: the duration or re-emergence of outbreaks and developments of variants of the SARS-CoV-2 virus, the distribution, public acceptance and efficacy of COVID-19 vaccines; the continuation, resumption, and/or expansion of restrictions imposed by governments and businesses; the impact of any resulting inflationary or recessionary conditions and general economic uncertainty in the global markets; the pace of economic recovery from any impact of the COVID-19 pandemic; and the impact of any such factors on our customers, suppliers, vendors, and other business partners. Complying with fire and safety standards may result in significant expense. As of December 31, 2021, we operated approximately 1,450 facilities worldwide, including more than 600 in the United States. Many of these facilities were built and outfitted by third parties and added to our real estate portfolio as part of acquisitions. Some of these facilities contain fire suppression and safety features that are different from our current specifications and current standards for new facilities, although we believe these facilities were in compliance with applicable fire and safety laws and regulations in effect at the time of their construction or outfitting. In some instances, local authorities may take the position that our fire suppression and safety features in a particular facility are insufficient and require additional measures that may involve considerable expense to us. In addition, where we determine that the fire suppression and safety features of a facility require improvement, we will develop and implement a plan to remediate the issue, although implementation may require an extended period to complete. A significant aspect of the integration of businesses we have acquired or may acquire is the process of making investments in the acquired facilities to conform such facilities to our standards of operations. This process is complex and time- consuming. If additional fire safety and suppression measures beyond our current operating plan were required at a large number of our facilities, the expense required for compliance could negatively impact our business, financial condition or results of operations. If we fail to meet our commitment to transition to more renewable and sustainable sources of energy, it may negatively impact our ability to attract and retain customers, employees and investors who focus on this commitment. Furthermore, changes to environmental laws and standards may increase the cost to operate some of our businesses. This could impact our results of operations and the trading of our stock. We have made a commitment to prioritize sustainable energy practices, reduce our carbon footprint and transition to more renewable and sustainable sources of energy, particularly in our data center business. We have made progress towards reducing our carbon footprint, but if we are not successful in continuing this reduction or if our customers, employees and investors are not satisfied with our sustainability efforts, it may negatively impact our ability to attract and retain customers, employees and investors who focus on this commitment. This could negatively impact our results of operations and the trading of our stock. IRON MOUNTAIN 2021 FORM 10-K 11 Table of Contents Part I Furthermore, changes in environmental laws in any jurisdiction in which we operate could increase compliance costs or impose limitations on our operations. For example, our emergency generators at our data centers are subject to regulations and permit requirements governing air pollutants, and the heating, ventilation and air conditioning and fire suppression systems at some of our data centers and data management locations may include ozone-depleting substances that are subject to regulation. While environmental regulations do not normally impose material costs upon operations at our facilities, unexpected events, equipment malfunctions, human error and changes in law or regulations, among other factors, could result in unexpected costs, which could be material. Failure to successfully integrate acquired businesses could negatively impact our balance sheet and results of operations. Strategic acquisitions are an important element of our growth strategy and the success of any acquisition we make depends in part on our ability to integrate the acquired business and realize anticipated synergies. The process of integrating acquired businesses, particularly in new markets or for new offerings, may involve unforeseen difficulties and may require a disproportionate amount of our management’s attention and our financial and other resources. For example, the success of our significant acquisitions depends, in large part, on our ability to realize the anticipated benefits, including cost savings or revenue acceleration from combining the acquired businesses with ours. To realize these anticipated benefits, we must be able to successfully integrate our business and the acquired businesses, and this integration is complex and time-consuming. We may encounter challenges in the integration process including the following: • challenges and difficulties associated with managing our larger, more complex, company; • conforming standards, controls, procedures and policies, business cultures and compensation and benefits structures between the two businesses; • consolidating corporate and administrative infrastructures; • coordinating geographically dispersed organizations; • retaining critical acquired talent; • potential unknown liabilities and unforeseen expenses or delays associated with an acquisition; and • our ability to deliver on our strategy going forward. Further, our acquisitions subject us to liabilities (including tax liabilities) that may exist at an acquired company, some of which may be unknown. Although we and our advisors conduct due diligence on the businesses we acquire, there can be no guarantee that we are aware of all liabilities of an acquired company. These liabilities, and any additional risks and uncertainties related to an acquired company not known to us or that we may deem immaterial or unlikely to occur at the time of the acquisition, could negatively impact our future business, financial condition and results of operations. We can give no assurance that we will ultimately be able to effectively integrate and manage the operations of any acquired business or realize anticipated synergies. The failure to successfully integrate the cultures, operating systems, procedures and information technologies of an acquired business could have a material adverse effect on our financial condition and results of operations. Our customer contracts may not always limit our liability and may sometimes contain terms that could lead to disputes in contract interpretation. Our customer contracts typically contain standardized provisions limiting our liability regarding the services we perform and the loss or destruction of, or damage to, records, information, or other items stored with us; however, some of our contracts with large customers and some of the contracts assumed in our acquisitions contain no such limits or contain non-standard limits. We can provide no assurance that our limitation of liability provisions will be enforceable in all instances or, if enforceable, that they would otherwise protect us from liability. In the past, we have had relatively few disputes with our customers regarding the terms of their customer contracts, and most disputes to date have not been material, but we can provide no assurance that we will not have material disputes in the future. Moreover, as we expand our operations in digital solutions and the storage of valuable items and respond to customer demands for higher limitation of liability, our exposure to contracts with higher or no limitations of liability and disputes with customers over contract interpretation may increase. Although we maintain a comprehensive insurance program, we can provide no assurance that we will be able to maintain insurance policies on acceptable terms or with high enough coverage amounts to cover losses to us in connection with customer contract disputes. 12 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part I International operations pose unique risks. As of December 31, 2021, we operated in over 60 countries outside the United States. Our international operations account for a significant portion of our overall operations, and as part of our growth strategy, we expect its share to increase as we continue to acquire or invest in businesses in select foreign markets, including countries where we do not currently operate. International operations are subject to numerous risks, including: • the impact of foreign government and United States laws and regulations that apply to us in foreign countries where we operate; in particular, we are subject to United States and foreign sanctions and anti-corruption laws, such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and, although we have implemented internal controls, policies and procedures and training to deter prohibited practices, our employees, partners, contractors or agents may violate or circumvent such policies and the law; • costs and difficulties associated with managing international operations including cross border sales; • • the volatility of certain foreign economies in which we operate; fluctuations of foreign currency exchange rates in the markets in which we operate; • political uncertainties and changes in the global political climate or other global events, such as trade wars involving the U.S. or global pandemics, including the COVID-19 pandemic, which may impose restrictions on, or create additional risk in relation to, global operations, which risks may become more pronounced as we consolidate operations across countries and need to move records and data across borders; • the risk that business partners upon whom we depend for technical assistance or management and acquisition expertise in some markets outside of the United States will not perform as expected; • difficulties attracting and retaining local management and key employees to operate our business in certain countries; and • cultural differences and differences in business practices and operating standards, as well as risks and challenges in expanding into countries where we have no prior operational experience. Our use of joint ventures could expose us to additional risks and liabilities, including our reliance on joint venture partners who may have economic and business interests that are inconsistent with our business interests, our lack of sole decision-making authority, and disputes between us and our joint venture partners. As part of our growth strategy, particularly in connection with our international and data center expansion, we currently, and may in the future, co-invest with third parties using joint ventures. These joint ventures can result in our holding non-controlling interests in, or having shared responsibility for managing the affairs of, a property or portfolio of properties, business, partnership, joint venture or other entity. As a result, in connection with our pursuit or entrance into any such joint venture, we may be subject to additional risks, including: • our ability to sell our interests in the joint venture may be limited by the joint venture agreement; • we may not have the right to exercise sole decision-making authority regarding the properties, business, partnership, joint venture or other entity; • if our partners become bankrupt or fail to fund their share of required capital contributions, we may choose or be required to contribute unplanned capital; • our partners may have economic, tax or other interests or goals that are inconsistent with our interests or goals, and that could affect our ability to negotiate satisfactory joint venture terms, to operate the property or business or maintain our qualification for taxation as a REIT; • our partners may be subject to different laws or regulations than us, or may be structured differently than us for tax purposes, which could create conflicts of interest and/or affect our ability to maintain our qualification for taxation as a REIT; • our partners may take actions that are not within our control, which could require us to dispose of the joint venture asset, transfer it to a taxable REIT subsidiary (“TRS”) in order for us to maintain our qualification for taxation as a REIT, or purchase such partner’s interests or assets at an above-market price; • we may agree to restrictions on our ability to expand our business in certain geographies independently or with other partners; • disputes between us and our partners may result in litigation or arbitration that would increase our expenses and prevent our management from focusing their time and effort on our day-to-day business; and • we may in certain circumstances be liable for the actions of our third-party partners or guarantee all or a portion of the joint venture’s liabilities, which may require us to pay an amount greater than our investment in the joint venture. Each of these factors may result in returns on these investments being less than we expect or in losses, and our financial and operating results may be adversely affected. IRON MOUNTAIN 2021 FORM 10-K 13 Table of Contents Part I Significant costs or disruptions at our data centers could adversely affect our business, financial condition and results of operations. Our Global Data Center Business depends on providing customers with highly reliable facilities, power infrastructure and operations solutions, and we will need to retain and hire qualified personnel to manage our data centers. Service interruptions or significant equipment damage could result in difficulty maintaining service level commitment obligations that we owe to certain of our customers. Service interruptions or equipment damage may occur at one or more of our data centers because of numerous factors, including: human error; equipment failure; physical, electronic and cyber security breaches; fire, hurricane, flood, earthquake and other natural disasters; water damage; fiber cuts; extreme temperatures; power loss or telecommunications failure; war, terrorism and any related conflicts or similar events worldwide; and sabotage and vandalism. We also purchase significant amounts of electricity from generating facilities and utility companies that are subject to environmental laws, regulations and permit requirements. These environmental requirements are subject to material change, which could result in increases in our electricity suppliers’ compliance costs that may be passed through to us. In addition, climate change may increase the likelihood that our data centers are affected by some of these factors. While these risks could impact our overall business, they could have a more significant impact on our Global Data Center Business, where we have service level commitment obligations to certain of our customers. As a result, service interruptions or significant equipment damage at our data centers could result in difficulty maintaining service level commitments to these customers and potential claims related to such failures. Because our data centers are critical to many of our customers’ businesses, service interruptions or significant equipment damage at our data centers could also result in lost profits or other indirect or consequential damages to our customers. Our Global Data Center Business is susceptible to regional costs of power, power shortages, planned or unplanned power outages and limitations on the availability of adequate power resources. We rely on third parties to provide power to our data centers. We are therefore subject to an inherent risk that such third parties may fail to deliver such power in adequate quantities or on a consistent basis. If the power delivered to our data centers is insufficient or interrupted, we would be required to provide power through the operation of our on-site generators, generally at a significantly higher operating cost. Additionally, global fluctuations in the price of power can increase the cost of energy, and we may be limited in our ability to, or may not always choose to, pass these increased costs on to our customers. We also rely on third party telecommunications carriers to provide internet connectivity to our customers. These carriers may elect not to offer or to restrict their services within our data centers or may elect to discontinue such services. Furthermore, carriers may face business difficulties, which could affect their ability to provide telecommunications services or the quality of such services. If connectivity is interrupted or terminated, our financial condition and results of operations may be adversely affected. Events such as these may also impact our reputation as a data center provider which could adversely affect our results of operations. We face additional risks in expanding our Global Data Center Business, including the significant amount of capital required. Expanding our Global Data Center Business requires significant capital commitments. In addition, we may be required to commit significant operational and financial resources in connection with the organic growth of our Global Data Center Business, generally 12 to 18 months in advance of securing customer contracts, and we may not have enough customer demand to support these data centers when they are built. There can be no assurance we will have sufficient customer demand to support the data centers we have acquired, or that we will not be adversely affected by the risks noted above under "Significant costs or disruptions at our data centers could adversely affect our business, financial condition and results of operations", which could make it difficult for us to realize expected returns on our investments, if any. Failure to comply with certain regulatory and contractual requirements under our United States Government contracts could adversely affect our revenues, operating results and financial position and reputation. Having the United States Government as a customer subjects us to certain regulatory and contractual requirements. Failure to comply with these requirements could subject us to investigations, price reductions, up to treble damages, and civil penalties. Noncompliance with certain regulatory and contractual requirements could also result in us being suspended or debarred from future United States Government contracting. We may also face private derivative securities claims because of adverse government actions. Any of these outcomes could have a material adverse effect on our revenues, operating results, financial position and reputation. 14 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part I We may be subject to certain costs and potential liabilities associated with the real estate required for our business. Because our business is heavily dependent on real estate, we face special risks attributable to the real estate we own or lease. Such risks include: • acquisition and occupancy costs that make it difficult to meet anticipated margins and difficulty locating suitable facilities due to a relatively small number of available buildings having the desired characteristics in some real estate markets; • increases in rent expense and property tax as a result of the increasing demand for industrial real estate; • uninsured losses or damage to our storage facilities due to an inability to obtain full coverage on a cost-effective basis for some casualties, such as fires, hurricanes and earthquakes, or any coverage for certain losses, such as losses from riots or terrorist activities; • • inability to use our real estate holdings effectively and costs associated with vacating or consolidating facilities if the demand for physical storage were to diminish; and liability under environmental laws for the costs of investigation and cleanup of contaminated real estate owned or leased by us, whether or not (i) we know of, or were responsible for, the contamination, or (ii) the contamination occurred while we owned or leased the property. Some of our current and formerly owned or leased properties were previously used by entities other than us for industrial or other purposes, or were affected by waste generated from nearby properties, that involved the use, storage, generation and/or disposal of hazardous substances and wastes, including petroleum products. In some instances this prior use involved the operation of underground storage tanks or the presence of asbestos-containing materials. Where we are aware of environmental conditions that require remediation, we undertake appropriate activity, in accordance with all legal requirements. Although we have from time to time conducted limited environmental investigations and remedial activities at some of our former and current facilities, we have not undertaken an environmental review of all of our properties, including those we have acquired. We therefore may be potentially liable for environmental costs like those discussed above and may be unable to sell, rent, mortgage or use contaminated real estate owned or leased by us. Environmental conditions for which we might be liable may also exist at properties that we may acquire in the future. In addition, future regulatory action and environmental laws may impose costs for environmental compliance that do not exist today. Unexpected events, including those resulting from climate change or geopolitical events, could disrupt our operations and adversely affect our reputation and results of operations. Unexpected events, including fires or explosions at our facilities, war or other military conflict, including an escalation of the conflict between Russia and Ukraine, or terrorist activities, natural disasters such as earthquakes and wildfires, unplanned power outages, supply disruptions, failure of equipment or systems, and severe weather events, such as droughts, heat waves, hurricanes, and flooding, could adversely affect our reputation and results of operations through physical damage to our facilities and equipment and through physical damage to, or disruption of, local infrastructure. During the past several years we have seen an increase in the frequency and intensity of severe weather events and we expect this trend to continue due to climate change. Some of our key facilities worldwide are vulnerable to severe weather events, and global weather pattern changes may also pose long-term risks of physical impacts to our business. Our customers rely on us to securely store and timely retrieve their critical information, and, while we maintain disaster recovery and business continuity plans that would be implemented in these situations, these unexpected events could result in customer service disruption, physical damage to one or more key operating facilities and the information stored in those facilities, the temporary closure of one or more key operating facilities or the temporary disruption of information systems, each of which could negatively impact our reputation and results of operations. In addition, these unexpected events could negatively impact our reputation if such events result in adverse publicity, governmental investigations or litigation or if customers do not otherwise perceive our response to be adequate. Fluctuations in commodity prices may affect our operating revenues and results of operations. Our operating revenues and results of operations are impacted by significant changes in commodity prices. In particular, our secure shredding operations generate revenue from the sale of shredded paper for recycling. Further, significant declines in the cost of paper may continue to negatively impact our revenues and results of operations, and increases in other commodity prices, including steel, may negatively impact our results of operations. Failure to manage and adequately implement our new IT systems could negatively affect our business. We rely on IT infrastructure, including hardware, networks, software, people and processes, to provide information to support assessments and conclusions about our operating performance. We are in the process of upgrading a number of our IT systems, including consolidating our existing finance operations platforms, and we face risks relating to these transitions. For example, we may incur greater costs than we anticipate training our personnel on the new systems, we may experience service disruptions or errors in accurately capturing data or retaining our records, and we may be delayed in meeting our various reporting obligations. There can be no assurance that we will manage our IT systems and implement these new systems as planned or that we will do so without disruptions to our operations, which could have an adverse effect on our business, financial condition, results of operations and cash flows. IRON MOUNTAIN 2021 FORM 10-K 15 Table of Contents Part I RISKS RELATED TO OUR INDEBTEDNESS Our substantial indebtedness could adversely affect our financial health and prevent us from fulfilling our obligations under our various debt instruments. We have a significant amount of indebtedness. As of December 31, 2021, our total long-term debt was approximately $9.3 billion, stockholders equity was approximately $856 million and we had cash and cash equivalents (including restricted cash) of approximately $256 million. Our substantial indebtedness could have important consequences to our current and potential investors. These risks include: • • • • • • • • inability to satisfy our obligations with respect to our various debt instruments; inability to make borrowings to fund future working capital, capital expenditures and strategic growth opportunities, including acquisitions, further organic development of our Global Data Center Business and expansions into adjacent businesses and other service offerings, and other general corporate requirements, including possible required repurchases, redemptions or prepayments of our various indebtedness; limits on our distributions to stockholders; in this regard if these limits prevented us from satisfying our REIT distribution requirements, we could fail to remain qualified for taxation as a REIT or, if these limits do not jeopardize our qualification for taxation as a REIT but do nevertheless prevent us from distributing 100% of our REIT taxable income, we will be subject to federal corporate income tax, and potentially a nondeductible excise tax, on the retained amounts; limits on future borrowings under our existing or future credit arrangements, which could affect our ability to pay our indebtedness or to fund our other liquidity needs; inability to generate sufficient funds to cover required interest payments; restrictions on our ability to refinance our indebtedness on commercially reasonable terms; limits on our flexibility in planning for, or reacting to, changes in our business and the information management services industry; and inability to adjust to adverse economic conditions that could place us at a disadvantage to our competitors with less debt and who, therefore, may be able to take advantage of opportunities that our indebtedness prevents us from pursuing. Despite our current indebtedness levels, we may still incur substantially more debt, particularly in order to execute on our strategic growth plan. The terms of our indentures generally do not cap the maximum amount of additional funds that may be borrowed under our Credit Agreement and possible future credit arrangements. Restrictive debt covenants may limit our ability to pursue our growth strategy. Our Credit Agreement and our indentures contain covenants restricting or limiting our ability to, among other things: • incur additional indebtedness; • pay dividends or make other restricted payments; • make asset dispositions; • create or permit liens; • sell, transfer or exchange assets; • guarantee certain indebtedness; • make acquisitions and other investments; and • enter into partnerships and joint ventures. These restrictions and our long-term commitment to reduce our leverage ratio may adversely affect our ability to pursue our acquisition and other growth strategies, including our strategic growth plan. We may not have the ability to raise the funds necessary to finance the repurchase of outstanding senior notes upon a change of control event as required by our indentures. Upon the occurrence of a “change of control,” as defined in our indentures, we will be required to offer to repurchase all of our outstanding senior notes. However, it is possible that we will not have sufficient funds at the time of a change of control to make the required repurchase of any outstanding notes or that restrictions in our Credit Agreement will not allow such repurchases. Certain important corporate events, however, such as leveraged recapitalizations that would increase the level of our indebtedness, would not constitute a “change of control” under our indentures. 16 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part I Iron Mountain Incorporated (“IMI”) is a holding company, and, therefore, its ability to make payments on its various debt obligations depends in large part on the operations of its subsidiaries. IMI is a holding company; substantially all of its assets consist of the equity in its subsidiaries, and substantially all of its operations are conducted by its direct and indirect consolidated subsidiaries. As a result, its ability to make payments on its debt obligations will be dependent upon the receipt of sufficient funds from its subsidiaries, whose ability to distribute funds may be limited by local capital requirements, joint venture structures and other applicable restrictions. However, our various debt obligations are guaranteed, on a joint and several and full and unconditional basis, by IMI’s U.S. subsidiaries that represent the substantial majority of its U.S. operations. RISKS RELATED TO OUR TAXATION AS A REIT If we fail to remain qualified for taxation as a REIT, we will be subject to tax at corporate income tax rates and will not be able to deduct distributions to stockholders when computing our taxable income. We have elected to be taxed as a REIT for federal income tax purposes beginning with our 2014 taxable year. We believe that our organization and method of operation comply with the rules and regulations promulgated under the Internal Revenue Code of 1986, as amended (the “Code”), such that we will continue to qualify for taxation as a REIT. However, we can provide no assurance that we will remain qualified for taxation as a REIT. If we fail to remain qualified for taxation as a REIT, we will be subject to federal income taxation at corporate income tax rates unless certain relief provisions apply. Qualification for taxation as a REIT involves the application of highly technical and complex provisions of the Code to our operations as well as various factual determinations concerning matters and circumstances not entirely within our control. There are limited judicial or administrative interpretations of applicable REIT provisions of the Code. If, in any taxable year, we fail to remain qualified for taxation as a REIT and are not entitled to relief under the Code: • we will not be allowed a deduction for distributions to stockholders in computing our taxable income; • we will be subject to federal and state income tax on our taxable income at regular corporate income tax rates; and • we would not be eligible to elect REIT status again until the fifth taxable year that begins after the first year for which we failed to qualify for taxation as a REIT. Any such corporate tax liability could be substantial and would reduce the amount of cash available for other purposes. If we fail to remain qualified for taxation as a REIT, we may need to borrow additional funds or liquidate some investments to pay any additional tax liability. Accordingly, funds available for investment and distributions to stockholders could be reduced. As a REIT, failure to make required distributions would subject us to federal corporate income tax. We expect to continue paying regular quarterly distributions; however, the amount, timing and form of our regular quarterly distributions will be determined, and will be subject to adjustment, by our board of directors. To remain qualified for taxation as a REIT, we are generally required to distribute at least 90% of our REIT taxable income (determined without regard to the dividends paid deduction and excluding net capital gain) each year, or in limited circumstances, the following year, to our stockholders. Generally, we expect to distribute all or substantially all of our REIT taxable income. If our cash available for distribution falls short of our estimates, we may be unable to maintain distributions that approximate our REIT taxable income and may fail to remain qualified for taxation as a REIT. In addition, our cash flows from operations may be insufficient to fund required distributions as a result of differences in timing between the actual receipt of income and the payment of expenses and the recognition of income and expenses for federal income tax purposes, or the effect of nondeductible expenditures. To the extent that we satisfy the 90% distribution requirement but distribute less than 100% of our REIT taxable income, we will be subject to federal corporate income tax on our undistributed taxable income. In addition, we will be subject to a 4% nondeductible excise tax on our undistributed taxable income if the actual amount that we distribute to our stockholders for a calendar year is less than the minimum amount specified under the Code. We may be required to borrow funds, sell assets or raise equity to satisfy our REIT distribution requirements, to comply with asset ownership tests or to fund capital expenditures, future growth and expansion initiatives. In order to satisfy our REIT distribution requirements and maintain our qualification and taxation as a REIT, or to fund capital expenditures, future growth and expansion initiatives, we may need to borrow funds, sell assets or raise equity, even if our financial condition or the then-prevailing market conditions are not favorable for these borrowings, sales or offerings. Furthermore, the REIT distribution requirements and our commitment to investors on dividend growth may result in increasing our financing needs to fund capital expenditures, future growth and expansion initiatives, which would increase our indebtedness. An increase in our outstanding debt could lead to a downgrade of our credit ratings, which could negatively impact our ability to access credit markets. Further, certain of our current debt instruments limit the amount of indebtedness we and our subsidiaries may incur. Additional financing, therefore, may be unavailable, more expensive or restricted by the terms of our outstanding indebtedness. For a discussion of risks related to our substantial level of indebtedness, see “Risks Related to Our Indebtedness.” IRON MOUNTAIN 2021 FORM 10-K 17 Table of Contents Part I Complying with REIT requirements may limit our flexibility, cause us to forgo otherwise attractive opportunities that we would otherwise pursue to execute our strategic growth plan, or otherwise reduce our income and amounts available for distribution to our stockholders. To remain qualified for taxation as a REIT, we must satisfy tests concerning, among other things, the sources of our income, the nature and diversification of our assets and the amounts we distribute to our stockholders. Thus, compliance with these tests may require us to refrain from certain activities and may hinder our ability to make certain attractive investments, including the purchase of non-REIT qualifying operations or assets, the expansion of non-real estate activities, and investments in the businesses to be conducted by our TRSs, and, to that extent, limit our opportunities and our flexibility to change our business strategy and execute on our strategic growth plan. This may restrict our ability to acquire certain businesses, enter into joint ventures or acquire minority interests of companies. Furthermore, acquisition opportunities in domestic and international markets may be adversely affected if we need or require the target company to comply with some REIT requirements prior to closing. We conduct a significant portion of our business activities, including our information management services businesses and several of our international operations, through domestic and foreign TRSs. Under the Code, no more than 20% of the value of the assets of a REIT may be represented by securities of one or more TRSs. Similar rules apply to other nonqualifying assets. These limitations may affect our ability to make additional investments in non-REIT qualifying operations or assets or in international operations through TRSs. If we fail to comply with specified asset ownership tests applicable to REITs as measured at the end of any calendar quarter, we generally must correct such failure within 30 days after the end of the applicable calendar quarter or qualify for statutory relief provisions to avoid losing our qualification for taxation as a REIT. As a result, we may be required to liquidate assets or to forgo our pursuit of otherwise attractive investments or executing on portions of our strategic growth plan. These actions may reduce our income and amounts available for distribution to our stockholders. As a REIT, we are limited in our ability to fund distribution payments using cash generated through our TRSs. Our ability to receive distributions from our TRSs is limited by the rules with which we must comply to maintain our qualification for taxation as a REIT. In particular, at least 75% of our gross income for each taxable year as a REIT must be derived from real estate, which generally includes gross income from providing customers with secure storage space or colocation or wholesale data center space. Consequently, no more than 25% of our gross income may consist of dividend income from our TRSs and other nonqualifying types of income. Thus, our ability to receive distributions from our TRSs may be limited, which may impact our ability to fund distributions to our stockholders using cash flows from our TRSs. Specifically, if our TRSs become highly profitable, we might become limited in our ability to receive net income from our TRSs in an amount required to fund distributions to our stockholders commensurate with that profitability. In addition, a significant amount of our income and cash flows from our TRSs is generated from our international operations. In many cases, there are local withholding taxes and currency controls that may impact our ability or willingness to repatriate funds to the United States to help satisfy REIT distribution requirements. Our extensive use of TRSs, including for certain of our international operations, may cause us to fail to remain qualified for taxation as a REIT. Our operations include an extensive use of TRSs. The net income of our TRSs is not required to be distributed to us, and income that is not distributed to us generally is not subject to the REIT income distribution requirement. However, there may be limitations on our ability to accumulate earnings in our TRSs and the accumulation or reinvestment of significant earnings in our TRSs could result in adverse tax treatment. In particular, if the accumulation of cash in our TRSs causes (1) the fair market value of our securities in our TRSs to exceed 20% of the fair market value of our assets or (2) the fair market value of our securities in our TRSs and other nonqualifying assets to exceed 25% of the fair market value of our assets, then we will fail to remain qualified for taxation as a REIT. Further, a substantial portion of our operations are conducted overseas, and a material change in foreign currency rates could also affect the value of our foreign holdings in our TRSs, negatively impacting our ability to remain qualified for taxation as a REIT. Even if we remain qualified for taxation as a REIT, some of our business activities are subject to corporate level income tax and foreign taxes, which will continue to reduce our cash flows, and we will have potential deferred and contingent tax liabilities. Even if we remain qualified for taxation as a REIT, we may be subject to some federal, state, local and foreign taxes, including taxes on any undistributed income, and state, local or foreign income, franchise, property and transfer taxes. In addition, we could in certain circumstances be required to pay an excise or penalty tax, which could be significant in amount, in order to utilize one or more relief provisions under the Code to maintain our qualification for taxation as a REIT. A portion of our business is conducted through wholly-owned TRSs because certain of our business activities could generate nonqualifying REIT income as currently structured and operated. The income of our domestic TRSs will continue to be subject to federal and state corporate income taxes. In addition, our international assets and operations will continue to be subject to taxation in the foreign jurisdictions where those assets are held or those operations are conducted. Any of these taxes would decrease our earnings and our available cash. 18 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part I We will also be subject to a federal corporate level income tax at the highest regular corporate income tax rate on gain recognized from a sale of a REIT asset where our basis in the asset is determined by reference to the basis of the asset in the hands of a C corporation (such as an asset that we hold in one of our qualified REIT subsidiaries (“QRSs”) following the liquidation or other conversion of a former TRS). This tax is generally applicable to any disposition of such an asset during the five-year period after the date we first owned the asset as a REIT asset, to the extent of the built-in-gain based on the fair market value of such asset on the date we first held the asset as a REIT asset. In addition, any depreciation recapture income that we recognize because of accounting method changes that we make in connection with our acquisition activities will be fully subject to this tax. Complying with REIT requirements may limit our ability to hedge effectively and increase the cost of our hedging and may cause us to incur tax liabilities. The REIT provisions of the Code limit our ability to hedge assets, liabilities, revenues and expenses. Generally, income from hedging transactions that we enter into to manage risk of interest rate changes with respect to borrowings made or to be made by us to acquire or carry real estate assets and income from certain currency hedging transactions related to our non-United States operations, as well as income from qualifying counteracting hedges, do not constitute “gross income” for purposes of the REIT gross income tests. To the extent that we enter into other types of hedging transactions, the income from those transactions is likely to be treated as nonqualifying income for purposes of the REIT gross income tests. As a result of these rules, we may need to limit our use of advantageous hedging techniques or implement those hedges through our TRSs. This could increase the cost of our hedging activities because our TRSs would be subject to tax on income or gains resulting from hedges entered into by them and may expose us to greater risks associated with changes in interest rates or exchange rates than we would otherwise want to bear. In addition, hedging losses in any of our TRSs generally will not provide any tax benefit, except for being carried forward for possible use against future income or gain in the TRSs. Distributions payable by REITs generally do not qualify for preferential tax rates. Dividends payable by United States corporations to noncorporate stockholders, such as individuals, trusts and estates, are generally eligible for reduced United States federal income tax rates applicable to “qualified dividends.” Distributions paid by REITs generally are not treated as “qualified dividends” under the Code, and the reduced rates applicable to such dividends do not generally apply. However, for tax years beginning before 2026, REIT dividends paid to noncorporate stockholders that meet specified holding period requirements are generally taxed at an effective tax rate lower than applicable ordinary income tax rates due to the availability of a deduction under the Code for specified forms of income from passthrough entities. More favorable rates will nevertheless continue to apply to regular corporate “qualified” dividends, which may cause some investors to perceive that an investment in a REIT is less attractive than an investment in a non-REIT entity that pays dividends, thereby reducing the demand and market price of our common stock. The ownership and transfer restrictions contained in our certificate of incorporation may not protect our qualification for taxation as a REIT, could have unintended antitakeover effects and may prevent our stockholders from receiving a takeover premium. In order for us to remain qualified for taxation as a REIT, no more than 50% of the value of outstanding shares of our capital stock may be owned, beneficially or constructively, by five or fewer individuals at any time during the last half of each taxable year. In addition, rents from “affiliated tenants” will not qualify as qualifying REIT income if we own 10% or more by vote or value of the customer, whether directly or after application of attribution rules under the Code. Subject to certain exceptions, our certificate of incorporation prohibits any stockholder from owning, beneficially or constructively, more than (i) 9.8% in value of the outstanding shares of all classes or series of our capital stock or (ii) 9.8% in value or number, whichever is more restrictive, of the outstanding shares of any class or series of our capital stock. We refer to these restrictions collectively as the “ownership limits” and we included them in our certificate of incorporation to facilitate our compliance with REIT tax rules. The constructive ownership rules under the Code are complex and may cause the outstanding stock owned by a group of related individuals or entities to be deemed to be constructively owned by one individual or entity. As a result, the acquisition of less than 9.8% of our outstanding common stock (or the outstanding shares of any class or series of our capital stock) by an individual or entity could cause that individual or entity or another individual or entity to own constructively in excess of the relevant ownership limits. Any attempt to own or transfer shares of our common stock or of any of our other capital stock in violation of these restrictions may result in the shares being automatically transferred to a charitable trust or may be void. Even though our certificate of incorporation contains the ownership limits, there can be no assurance that these provisions will be effective to prevent our qualification for taxation as a REIT from being jeopardized, including under the affiliated tenant rule. Furthermore, there can be no assurance that we will be able to monitor and enforce the ownership limits. If the restrictions in our certificate of incorporation are not effective and, as a result, we fail to satisfy the REIT tax rules described above, then, absent an applicable relief provision, we will fail to remain qualified for taxation as a REIT. In addition, the ownership and transfer restrictions could delay, defer or prevent a transaction or a change in control that might involve a premium price for our stock or otherwise be in the best interest of our stockholders. As a result, the overall effect of the ownership and transfer restrictions may be to render more difficult or discourage any attempt to acquire us, even if such acquisition may be favorable to the interests of our stockholders. IRON MOUNTAIN 2021 FORM 10-K 19 Table of Contents Part I Legislative or other actions affecting REITs could have a negative effect on us or our stockholders. At any time, the federal or state income tax laws governing REITs, the administrative interpretations of those laws, or local laws impacting our REIT structure for our international operations may be amended. Federal, state and local tax laws are constantly under review by persons involved in the legislative process, the IRS, the United States Department of the Treasury (“Treasury”) and state and local taxing authorities. Changes to the tax laws, regulations and administrative interpretations or local laws governing our international operations, which may have retroactive application, could adversely affect us. In addition, some of these changes could have a more significant impact on us as compared to other REITs due to the nature of our business and our substantial use of TRSs, particularly non-United States TRSs, or how we have structured our operations outside the United States to comply with REIT qualification requirements. We cannot predict with certainty whether, when, in what forms, or with what effective dates, the tax laws, regulations, administrative interpretations or local laws applicable to us may be changed or if such laws would impact our ability to remain qualified for taxation as a REIT or the costs of doing so. GENERAL RISK FACTORS Our cash distributions are not guaranteed and may fluctuate. As a REIT, we are generally required to distribute at least 90% of our REIT taxable income to our stockholders. Furthermore, we are committed to growing our dividends, and have stated this publicly. Our board of directors, in its sole discretion, will determine, on a quarterly basis, the amount of cash to be distributed to our stockholders based on a number of factors including, but not limited to, our results of operations, cash flow and capital requirements, economic conditions, tax considerations, borrowing capacity and other factors, including debt covenant restrictions that may impose limitations on cash payments, future acquisitions and divestitures, any stock repurchase program and general market demand for our space and related services. Consequently, our distribution levels may fluctuate and we may not be able to meet our public commitments with respect to dividend growth. Our business could be adversely impacted if there are deficiencies in our disclosure controls and procedures or internal control over financial reporting. The design and effectiveness of our disclosure controls and procedures and internal control over financial reporting may not prevent all errors, misstatements or misrepresentations. While management will continue to review the effectiveness of our disclosure controls and procedures and internal control over financial reporting, there can be no guarantee that our internal control over financial reporting will be effective in accomplishing all control objectives all of the time. Furthermore, our disclosure controls and procedures and internal control over financial reporting with respect to entities that we do not control or manage may be substantially more limited than those we maintain with respect to the subsidiaries that we have controlled or managed over the course of time. Deficiencies, including any material weakness, in our internal control over financial reporting which may occur in the future could result in misstatements of our results of operations, restatements of our financial statements, a decline in our stock price, or otherwise materially adversely affect our business, reputation, results of operations, financial condition or liquidity. We face competition for customers. We compete with multiple businesses in all geographic areas where we operate; our current or potential customers may choose to use those competitors instead of us. In addition, if we are successful in winning customers from competitors, the process of moving their stored records into our facilities is often costly and time consuming. We also compete, in some of our business lines, with our current and potential customers’ internal storage and information management services capabilities and their cloud-based alternatives. These organizations may not begin or continue to use us for their future storage and information management service needs. The performance of our businesses relies on our ability to attract, develop, and retain talented personnel, while controlling our labor costs. We are highly dependent on skilled and qualified personnel to operate our businesses. The failure to attract and retain qualified employees or to effectively control our labor costs could negatively affect our competitive position and operating results. Our ability to control labor costs and attract qualified personnel is subject to numerous external factors, including prevailing wages, labor shortages, the impact of legislation or regulations governing wages and hours, labor relations, immigration, healthcare and other benefits, other employment-related costs and the hiring practices of our competitors. ITEM 1B. UNRESOLVED STAFF COMMENTS. None. 20 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part I ITEM 2. PROPERTIES. As of December 31, 2021, we conducted operations through 1,184 leased facilities and 263 owned facilities. Our facilities are divided among our reportable operating segments as follows: Global RIM Business (1,363), Global Data Center Business (17) and Corporate and Other Business (67). These facilities contain a total of approximately 94.6 million square feet of space. A breakdown of owned and leased facilities by country (and by state within the United States) is listed below: IRON MOUNTAIN 2021 FORM 10-K 21 Table of Contents Part I COUNTRY/STATE North America United States (Including Puerto Rico) Alabama Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts (including Corporate Headquarters) Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina Ohio Oklahoma Oregon Pennsylvania Puerto Rico Rhode Island South Carolina Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Total United States Canada Total North America LEASED OWNED TOTAL NUMBER SQUARE FEET NUMBER SQUARE FEET NUMBER SQUARE FEET 3 8 2 312,473 496,448 63,604 67 5,908,150 8 6 3 1 31 9 2 15 6 2 3 2 4 — 20 8 17 12 3 13 3 1 7 — 33 3 18 19 14 5 11 23 4 1 5 5 43 2 2 12 6 2 5 469 46 515 466,336 309,836 239,640 1,670 2,240,035 798,880 105,021 1,213,808 344,516 145,138 253,919 64,000 388,475 — 2,139,060 545,039 1,068,499 908,474 201,300 1,548,828 38,548 34,560 276,520 — 3,074,071 151,473 877,103 976,504 1,074,262 228,425 384,296 2,181,786 237,969 70,159 261,011 256,743 2,349,451 78,148 55,200 685,369 701,991 105,502 379,857 34,242,097 3,081,804 37,323,901 1 6 — 10 4 3 1 — 5 5 — 7 — 1 — 4 — 1 2 7 2 — — 1 — 2 1 1 8 — 12 3 4 — 1 3 1 1 2 4 21 1 — 7 5 — 1 138 16 154 12,621 1,207,281 — 958,856 484,490 527,666 120,921 — 263,930 265,049 — 1,309,975 — 14,200 — 418,760 — 95,000 83,442 1,025,167 62,300 — — 25,120 — 266,733 107,041 146,467 2,476,635 — 1,166,558 150,624 250,291 — 55,621 2,062,761 54,352 12,748 214,238 63,909 4 14 2 77 12 9 4 1 36 14 2 22 6 3 3 6 4 1 22 15 19 12 3 14 3 3 8 1 41 3 30 22 18 5 12 26 5 2 7 9 1,894,453 64 90,553 — 795,036 196,028 — 10,655 16,889,481 1,783,258 18,672,739 3 2 19 11 2 6 607 62 669 325,094 1,703,729 63,604 6,867,006 950,826 837,502 360,561 1,670 2,503,965 1,063,929 105,021 2,523,783 344,516 159,338 253,919 482,760 388,475 95,000 2,222,502 1,570,206 1,130,799 908,474 201,300 1,573,948 38,548 301,293 383,561 146,467 5,550,706 151,473 2,043,661 1,127,128 1,324,553 228,425 439,917 4,244,547 292,321 82,907 475,249 320,652 4,243,904 168,701 55,200 1,480,405 898,019 105,502 390,512 51,131,578 4,865,062 55,996,640 22 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part I COUNTRY/STATE International Argentina Armenia Australia Austria Bahrain Belarus Belgium Brazil Bulgaria Chile China Mainland (including China - Hong Kong S.A.R., China-Taiwan and China-Macau S.A.R.) Colombia Croatia Cyprus Czech Republic Denmark Egypt England Estonia Eswatini Finland France Germany Greece Hungary India Indonesia Ireland Jordan Kazakhstan Latvia Lesotho Lithuania Malaysia Mexico Morocco The Netherlands New Zealand Northern Ireland Norway Oman Peru Philippines Poland Romania Russia Saudi Arabia Scotland Serbia Singapore Slovakia South Africa South Korea Spain Sweden Switzerland LEASED OWNED TOTAL NUMBER SQUARE FEET NUMBER SQUARE FEET NUMBER SQUARE FEET 2 3 41 3 2 4 4 41 1 2 46 21 2 2 7 3 — 66 1 3 3 31 15 5 8 70 15 2 — 4 2 2 2 8 10 6 7 6 3 5 2 3 9 19 8 42 7 1 3 6 5 16 8 30 6 12 134,753 13,712 2,888,639 92,296 33,659 18,472 202,106 2,813,259 68,889 6,846 1,960,751 799,378 62,786 51,118 152,889 161,361 — 3,551,854 38,861 6,997 95,896 2,078,227 698,593 314,894 388,033 3,147,462 485,809 118,831 — 46,482 50,681 4,736 60,543 443,149 478,471 554,439 522,687 413,959 129,083 194,321 60,202 60,720 338,040 796,561 451,954 1,811,370 400,687 67,191 98,876 297,581 173,792 477,046 257,233 754,667 759,793 283,857 4 — 2 1 — — 1 6 — 17 1 — 1 2 — — 1 18 — — — 12 3 — — — 2 3 1 — — — — — 8 — 1 — — — — 10 — — — — — 4 — 3 — — — 5 — — 298,864 — 33,845 58,771 — — 104,391 291,280 — 667,790 20,518 — 36,447 46,246 — — 163,611 598,009 — — — 936,486 308,504 — — — 58,965 158,558 24,757 — — — — — 585,885 — 37,355 — — — — 433,770 — — — — — 375,294 — 345,056 — — — 170,707 — — 6 3 43 4 2 4 5 47 1 19 47 21 3 4 7 3 1 84 1 3 3 43 18 5 8 70 17 5 1 4 2 2 2 8 18 6 8 6 3 5 2 13 9 19 8 42 7 5 3 9 5 16 8 35 6 12 433,617 13,712 2,922,484 151,067 33,659 18,472 306,497 3,104,539 68,889 674,636 1,981,269 799,378 99,233 97,364 152,889 161,361 163,611 4,149,863 38,861 6,997 95,896 3,014,713 1,007,097 314,894 388,033 3,147,462 544,774 277,389 24,757 46,482 50,681 4,736 60,543 443,149 1,064,356 554,439 560,042 413,959 129,083 194,321 60,202 494,490 338,040 796,561 451,954 1,811,370 400,687 442,485 98,876 642,637 173,792 477,046 257,233 925,374 759,793 283,857 IRON MOUNTAIN 2021 FORM 10-K 23 Table of Contents Part I COUNTRY/STATE International (Continued) Thailand Turkey Ukraine United Arab Emirates Vietnam Total International Total LEASED OWNED TOTAL NUMBER SQUARE FEET NUMBER SQUARE FEET NUMBER SQUARE FEET 4 9 10 10 1 267,989 683,641 208,050 833,421 54,767 669 32,422,360 1,184 69,746,261 2 — — 1 — 109 263 105,487 — — 349,526 — 6 9 10 11 1 373,476 683,641 208,050 1,182,947 54,767 6,210,122 24,882,861 778 1,447 38,632,482 94,629,122 The leased facilities typically have initial lease terms of five to 10 years with one or more renewal options. In addition, some of the leases contain either a purchase option or a right of first refusal upon the sale of the property. We believe that the space available in our facilities is adequate to meet our current needs, although future growth may require that we lease or purchase additional real property. Our total building utilization and total racking utilization by region as of December 31, 2021 in Records Management and Data Management are as follows: REGION North America Europe Latin America Asia Total RECORDS MANAGEMENT(1) DATA MANAGEMENT BUILDING UTILIZATION RACKING UTILIZATION BUILDING UTILIZATION RACKING UTILIZATION 80% 85% 87% 84% 82% 87% 91% 90% 92% 89% 58% 40% 73% 58% 55% 66% 59% 75% 70% 66% (1) Total building utilization and total racking utilization for Records Management includes the utilization for GDS and Consumer Storage. See Note 2.i. to Notes to Consolidated Financial Statements included in this Annual Report for information regarding our minimum annual lease commitments as a lessee. See Schedule III—Schedule of Real Estate and Accumulated Depreciation in this Annual Report for information regarding the cost, accumulated depreciation and encumbrances associated with our owned real estate. The following table sets forth a summary of the lease expirations for leases in place related to our Global Data Center Business, for which we are the lessor, as of December 31, 2021. The information set forth in the table assumes that tenants exercise no renewal options and all early termination rights. YEAR 2022 2023 2024 2025 2026 2027 2028 Thereafter Total NUMBER OF LEASES EXPIRING TOTAL MEGAWATTS EXPIRING PERCENTAGE OF TOTAL MEGAWATTS EXPIRING ANNUALIZED TOTAL CONTRACT RENT EXPIRING (IN THOUSANDS) PERCENTAGE OF TOTAL CONTRACT VALUE ANNUALIZED RENT 556 350 237 77 63 10 13 14 15.1 22.7 12.9 20.0 20.0 3.2 37.7 48.5 8.4 % $ 12.6 % 7.2 % 11.1 % 11.1 % 1.8 % 20.9 % 26.9 % 47,646 63,540 32,704 43,748 33,746 6,429 47,216 48,715 14.7 % 19.6 % 10.1 % 13.5 % 10.4 % 2.0 % 14.6 % 15.1 % 1,320 180.1 100.0 % $ 323,744 100.0 % 24 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part I ITEM 3. LEGAL PROCEEDINGS We are involved in litigation from time to time in the ordinary course of business. A portion of the defense and/or settlement costs associated with such litigation is covered by various commercial liability insurance policies purchased by us and, in limited cases, indemnification from third parties. In the opinion of management, no material legal proceedings are pending to which we, or any of our properties, are subject. ITEM 4. MINE SAFETY DISCLOSURES. None. IRON MOUNTAIN 2021 FORM 10-K 25 Table of Contents PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. Our common stock is traded on the NYSE under the symbol “IRM". The closing price of our common stock on the NYSE on February 18, 2022 was $43.01. As of February 18, 2022, there were 7,117 holders of record of our common stock. See Note 9 to Notes to Consolidated Financial Statements included in this Annual Report for additional information on dividends declared on our common stock. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS We did not sell any unregistered equity securities during the three months ended December 31, 2021, nor did we repurchase any shares of our common stock during the three months ended December 31, 2021. ITEM 6. [RESERVED.] ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. The following discussion should be read in conjunction with the Consolidated Financial Statements and Notes thereto and the other financial and operating information included elsewhere in this Annual Report. This discussion contains “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995 and in other securities laws. See “Cautionary Note Regarding Forward-Looking Statements” on page iii of this Annual Report and “Item 1A. Risk Factors” beginning on page 9 of this Annual Report. IRON MOUNTAIN 2021 FORM 10-K 27 Table of Contents Part II OVERVIEW COVID-19 In March 2020, the World Health Organization declared a novel strain of coronavirus (“COVID-19”) a pandemic. While we have broad geographic and customer diversification with operations in 63 countries and no single customer accounting for more than approximately 1% of revenue during the year ended December 31, 2021, COVID-19 is a global pandemic impacting numerous industries and geographies. While our service operations have increased from the reductions we experienced during the first and second quarter of 2020, future service revenues remain uncertain and will be dependent on the severity of the COVID-19 pandemic, including new variants of COVID-19 that may emerge. PROJECT SUMMIT In October 2019, we announced Project Summit, our global program designed to better position us for future growth and achievement of our strategic objectives. As of December 31, 2021, we have completed Project Summit. As a result of the program we have simplified our global structure, rebalanced resources to focus on higher growth areas, realigned our management structure to create a more dynamic, agile organization, made investments to enhance the customer experience and leveraged new technology solutions that enabled us to modernize our service delivery model and more efficiently utilize our fleet, labor and real estate. Project Summit has improved annual Adjusted EBITDA (as defined below) by approximately $375.0 million exiting 2021, of which approximately $160.0 million and $165.0 million were realized in 2021 and 2020, respectively, with the remainder to come in 2022. 2021 Exiting 2021 $160 million $375 million The implementation of Project Summit resulted in total operating expenditures ("Restructuring Charges") of approximately $450.0 million that primarily consisted of: (1) employee severance costs; (2) internal costs associated with the development and implementation of Project Summit initiatives; (3) professional fees, primarily related to third party consultants who assisted with the design and execution of various initiatives as well as project management activities and (4) system implementation and data conversion costs. The following table presents (in millions) total Restructuring Charges related to Project Summit from the inception of Project Summit through December 31, 2021 and for the years ended December 31, 2021, 2020 and 2019: From the Inception of Project Summit through December 31, 2021 For the Year Ended December 31, 2021 For the Year Ended December 31, 2020 For the Year Ended December 31, 2019 We have also incurred approximately $33.8 million in capital expenditures related to Project Summit from the inception of Project Summit through December 31, 2021. 28 IRON MOUNTAIN 2021 FORM 10-K Table of Contents DIVESTMENTS Part II INTELLECTUAL PROPERTY MANAGEMENT BUSINESS On June 7, 2021, we sold our Intellectual Property Management ("IPM") business, also known as our technology escrow services business, which we predominantly operated in the United States, for total gross consideration of approximately $215.4 million (the “IPM Divestment”). As a result of the IPM Divestment, we recorded a gain on sale of approximately $179.0 million to Other (income) expense, net, during the year ended December 31, 2021, the substantial majority of which was recorded during the second quarter of 2021, representing the excess of the fair value of the consideration received over the sum of the carrying value of the IPM business. Our IPM business represented approximately $14.2 million, $32.8 million and $33.2 million of total revenues for the years ended December 31, 2021, 2020 and 2019, respectively, and approximately $6.8 million, $16.0 million and $17.2 million of total net income for the years ended December 31, 2021, 2020 and 2019, respectively. IRON MOUNTAIN CONSUMER STORAGE In March 2019, we contributed our customer contracts and certain intellectual property and other assets used by us to operate our consumer storage business in the United States and Canada (the “IM Consumer Storage Assets”) and approximately $20.0 million in cash (gross of certain transaction expenses) (the “Cash Contribution”) to a strategic partnership (the “MakeSpace JV”) established by us and MakeSpace Labs, Inc. (“MakeSpace”) pursuant to a transaction which closed on March 19, 2019 (the "Consumer Storage Transaction"). Upon the closing of the Consumer Storage Transaction, the MakeSpace JV owned (i) the IM Consumer Storage Assets, (ii) the Cash Contribution and (iii) the customer contracts, intellectual property and certain other assets used by MakeSpace to operate its consumer storage business in the United States. As part of the Consumer Storage Transaction, we received an initial equity interest of approximately 34% in the MakeSpace JV (the “MakeSpace Investment”). In the second quarter of 2020, we committed to participate in a round of equity funding for the MakeSpace JV whereby we contributed $36.0 million of the $45.0 million being raised in installments between May 2020 through October 2021. At December 31, 2021, we owned 49.99% of the outstanding equity in the MakeSpace JV. In connection with the Consumer Storage Transaction and the MakeSpace Investment, we also 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”). Revenues and expenses associated with the MakeSpace Agreement are presented as a component of our Global RIM Business segment. During the years ended December 31, 2021, 2020 and 2019, we recognized revenue of approximately $34.7 million, $33.6 million and $22.5 million, respectively, associated with the MakeSpace Agreement. As a result of the Consumer Storage Transaction, we recorded a gain on sale of approximately $4.2 million to Other (income) expense, net, during the first quarter of 2019, representing the excess of the fair value of the consideration received over the sum of the carrying value of our consumer storage operations and (ii) the Cash Contribution. ________________________________________________________ As described in Note 4 to Notes to Consolidated Financial Statements included in this Annual Report, we have concluded that the divestments of IPM and the IM Consumer Storage Assets in the Consumer Storage Transaction do not meet the criteria to be reported as discontinued operations in our consolidated financial statements. GENERAL RESULTS OF OPERATIONS - KEY TRENDS • In spite of the COVID-19 pandemic, we have experienced relatively 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, particularly in regions where governments have lifted or eased COVID-19-related restrictions on our customers’ non-essential business operations. We expect organic service revenue growth in 2022 to benefit from our new and existing digital offerings. • We expect revenue and Adjusted EBITDA growth to accelerate in 2022 with continued focus on new product and service offerings, innovation, customer solutions and market expansion. IRON MOUNTAIN 2021 FORM 10-K 29 Table of Contents Part II Our revenues consist of storage rental revenues as well as service revenues and are reflected net of sales and value-added taxes. Storage rental revenues, which are considered a key driver of financial performance for the storage and information management services industry, consist primarily of recurring periodic rental charges related to the storage of materials or data (generally on a per unit basis) that are typically retained by customers for many years and revenues associated with our data center operations. Service revenues include charges for related service activities, the most significant of which include: (1) the handling of records, including the addition of new records, temporary removal of records from storage, refiling of removed records, customer termination and permanent withdrawal fees, project revenues, and courier operations, consisting primarily of the pickup and delivery of records upon customer request; (2) destruction services, consisting primarily of secure shredding of sensitive documents and the subsequent sale of shredded paper for recycling, the price of which can fluctuate from period to period; (3) digital solutions, including the scanning, imaging and document conversion services of active and inactive records, and consulting services; and (4) data center services, including set up, monitoring and support of our customers' assets which are protected in our data center facilities, and special project services, including data center fitout. Our service revenue growth has been negatively impacted by declining activity rates as stored records are becoming less active. While customers continue to store their records and tapes with us, they are less likely than they have been in the past to retrieve records for research and other purposes, thereby reducing service activity levels. BREAKDOWN OF REVENUES Cost of sales (excluding depreciation and amortization) consists primarily of labor, including wages and benefits for field personnel, facility occupancy costs (including rent and utilities), transportation expenses (including vehicle leases and fuel), other product cost of sales and other equipment costs and supplies. Of these, labor and facility occupancy costs are the most significant. Selling, general and administrative expenses consist primarily of wages and benefits for management, administrative, IT, sales, account management and marketing personnel, as well as expenses related to communications and data processing, travel, professional fees, bad debts, training, office equipment and supplies. Cost of sales (excluding depreciation and amortization) and Selling, general and administrative expenses for the year ended December 31, 2021 consists of the following: COST OF SALES SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 30 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part II Trends in facility occupancy costs are impacted by: • • • • the total number of facilities we occupy; the mix of properties we own versus properties we lease; fluctuations in per square foot occupancy costs; and the levels of utilization of these properties. Trends in total wages and benefits in dollars and as a percentage of total consolidated revenue are influenced by: • changes in headcount and compensation levels; • achievement of incentive compensation targets; • workforce productivity; and • variability in costs associated with medical insurance and workers’ compensation. The expansion of our international businesses has impacted the major cost of sales components and selling, general and administrative expenses. • Our international operations are more labor intensive relative to revenue than our operations in North America and, therefore, labor costs are a higher percentage of international operational revenue. • The overhead structure of our expanding international operations has generally not achieved the same level of overhead leverage as our North American operations, which may result in an increase in selling, general and administrative expenses as a percentage of consolidated revenue as our international operations become a larger percentage of our consolidated results. Our depreciation and amortization charges result primarily from depreciation related to storage systems, which include racking structures, buildings, building and leasehold improvements and computer systems hardware and software. Amortization relates primarily to customer relationship intangible assets, contract fulfillment costs and data center lease-based intangible assets. Both depreciation and amortization are impacted by the timing of acquisitions. Our consolidated revenues and expenses are subject to the net effect of foreign currency translation related to our operations outside the United States. It is difficult to predict the future fluctuations of foreign currency exchange rates and how those fluctuations will impact our Consolidated Statements of Operations. As a result of the relative size of our international operations, these fluctuations may be material on individual balances. Our revenues and expenses from our international operations are generally denominated in the local currency of the country in which they are derived or incurred. Therefore, the impact of currency fluctuations on our operating income and operating margin is partially mitigated. In order to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency fluctuations, we compare the percentage change in the results from one period to another period in this report using constant currency presentation. The constant currency growth rates are calculated by translating the 2020 results at the 2021 average exchange rates and the 2019 results at the 2020 average exchange rates. Constant currency growth rates are a non-GAAP measure. IRON MOUNTAIN 2021 FORM 10-K 31 Table of Contents Part II The following table is a comparison of underlying average exchange rates of the foreign currencies that had the most significant impact on our United States dollar-reported revenues and expenses: Australian dollar Brazilian real British pound sterling Canadian dollar Euro Australian dollar Brazilian real British pound sterling Canadian dollar Euro PERCENTAGE OF UNITED STATES DOLLAR- REPORTED REVENUE FOR THE YEAR ENDED DECEMBER 31, AVERAGE EXCHANGE RATES FOR THE YEAR ENDED DECEMBER 31, 2021 2020 2021 2020 PERCENTAGE STRENGTHENING / (WEAKENING) OF FOREIGN CURRENCY 3.3 % 1.8 % 6.6 % 5.6 % 7.7 % 3.2 % $ 1.9 % $ 6.0 % $ 5.4 % $ 7.5 % $ 0.751 $ 0.186 $ 1.376 $ 0.798 $ 1.183 $ 0.690 0.196 1.283 0.746 1.141 8.8 % (5.1) % 7.2 % 7.0 % 3.7 % PERCENTAGE OF UNITED STATES DOLLAR- REPORTED REVENUE FOR THE YEAR ENDED DECEMBER 31, AVERAGE EXCHANGE RATES FOR THE YEAR ENDED DECEMBER 31, 2020 2019 2020 2019 PERCENTAGE STRENGTHENING / (WEAKENING) OF FOREIGN CURRENCY 3.2 % 1.9 % 6.0 % 5.4 % 7.5 % 3.4 % $ 2.6 % $ 6.4 % $ 5.7 % $ 7.4 % $ 0.690 $ 0.196 $ 1.283 $ 0.746 $ 1.141 $ 0.695 0.254 1.277 0.754 1.120 (0.7) % (22.8) % 0.5 % (1.1) % 1.9 % The percentage of United States dollar-reported revenues for all other foreign currencies was 14.6%, 13.8% and 12.7% for the years ended December 31, 2021, 2020 and 2019, respectively. NON-GAAP MEASURES ADJUSTED EBITDA Adjusted EBITDA is defined as income (loss) from continuing operations 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 • Other (income) expense, net • Restructuring Charges • • Intangible impairments (Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate) • Stock-based compensation expense • COVID-19 Costs (as defined below) 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 operating segments under “Results of Operations – Segment Analysis” below. 32 IRON MOUNTAIN 2021 FORM 10-K         Table of Contents Part II 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 also 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, income (loss) from continuing operations, net income (loss) or cash flows from operating activities from continuing operations (as determined in accordance with GAAP). RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA (IN THOUSANDS): Income (Loss) from Continuing Operations $ 452,725 $ 343,096 $ 268,211 YEAR ENDED DECEMBER 31, 2021 2020 2019 Add/(Deduct): Interest expense, net Provision (benefit) for income taxes Depreciation and amortization Acquisition and Integration Costs Restructuring Charges Intangible impairments (Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate) Other (income) expense, net, excluding our share of losses (gains) from our unconsolidated joint ventures(1) Stock-based compensation expense COVID-19 Costs(2) Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures 417,961 176,290 680,422 12,764 206,426 — 418,535 29,609 652,069 — 194,396 23,000 419,298 59,931 658,201 13,293 48,597 — (172,041) (363,537) (63,824) (205,746) 61,001 — 4,897 133,611 34,272 9,285 1,385 25,720 36,194 — 3,388 Adjusted EBITDA $ 1,634,699 $ 1,475,721 $ 1,469,009 (1) Includes foreign currency transaction losses (gains), net, debt extinguishment expense and other, net. See Note 2.u. to Notes to Consolidated Financial Statements included in this Annual Report for additional information regarding the components of Other (income) expense, net. (2) Costs that are incremental and directly attributable to the COVID-19 pandemic which are not expected to recur once the pandemic ends (“COVID-19 Costs”). These costs include the purchase of personal protective equipment for our employees and incremental cleaning costs of our facilities, among other direct costs. ADJUSTED EPS Adjusted EPS is defined as reported earnings per share fully diluted from continuing operations (inclusive of our share of adjusted losses (gains) from our unconsolidated joint ventures) and excluding certain items, specifically: EXCLUDED • Acquisition and Integration Costs • Other (income) expense, net • Restructuring Charges • Stock-based compensation expense • • Intangible impairments • COVID-19 Costs (Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate) • 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. IRON MOUNTAIN 2021 FORM 10-K 33 Table of Contents Part II RECONCILIATION OF REPORTED EPS—FULLY DILUTED FROM CONTINUING OPERATIONS TO ADJUSTED EPS—FULLY DILUTED FROM CONTINUING OPERATIONS: YEAR ENDED DECEMBER 31, 2021 2020 2019 Reported EPS—Fully Diluted from Continuing Operations $ 1.55 $ 1.19 $ 0.93 Add/(Deduct): Acquisition and Integration Costs Restructuring Charges Intangible impairments (Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate) Other (income) expense, net, excluding our share of losses (gains) from our unconsolidated joint ventures Stock-based compensation expense COVID-19 Costs(1) Tax impact of reconciling items and discrete tax items(2) Income (loss) Attributable to Noncontrolling Interests Adjusted EPS—Fully Diluted from Continuing Operations(3) 0.04 0.71 — (0.59) (0.71) 0.21 — 0.28 0.01 — 0.67 0.08 (1.26) 0.46 0.12 0.03 (0.11) — $ 1.51 $ 1.19 $ 0.05 0.17 — (0.22) 0.09 0.13 — (0.03) — 1.11 (1) These costs include the purchase of personal protective equipment for our employees and incremental cleaning costs of our facilities, among other direct costs. (2) The difference between our effective tax rate and our structural tax rate (or adjusted effective tax rate) for the years ended December 31, 2021, 2020, and 2019 is primarily due to (i) the reconciling items above, which impact our reported income (loss) from continuing operations 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 years ended December 31, 2021, 2020 and 2019 was 17.7%, 15.1%, and 17.6%, respectively. (3) Columns may not foot due to rounding. FFO (NAREIT) AND FFO (NORMALIZED) Funds from operations ("FFO") is defined by the National Association of Real Estate Investment Trusts (“Nareit”) as net income (loss) excluding depreciation on real estate assets, gains on sale of real estate, net of tax, and amortization of data center leased- based intangibles. 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). Although Nareit has published a definition of FFO, 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 Charges • Stock-based compensation expense • COVID-19 Costs • • Intangible impairments • Real estate financing lease depreciation (Gain) loss on disposal/write-down of property, plant and equipment, net (excluding real estate) • Tax impact of reconciling items and discrete tax items • (Income) loss from discontinued operations, net of tax • Other (income) expense, net 34 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part II RECONCILIATION OF NET INCOME (LOSS) TO FFO (NAREIT) AND FFO (NORMALIZED) (IN THOUSANDS): Net Income (Loss) Add/(Deduct): Real estate depreciation(1) Gain on sale of real estate, net of tax(2) Data center lease-based intangible assets amortization(3) Our share of FFO (Nareit) reconciling items from our unconsolidated joint ventures FFO (Nareit) Add/(Deduct): Acquisition and Integration Costs Restructuring Charges Intangible impairments (Gain) loss on disposal/write-down of property, plant and equipment, net (excluding real estate) Other (income) expense, net, excluding our share of losses (gains) from our unconsolidated joint ventures(4) Stock-based compensation expense COVID-19 Costs(5) Real estate financing lease depreciation Tax impact of reconciling items and discrete tax items(6) (Income) loss from discontinued operations, net of tax Our share of FFO (Normalized) reconciling items from our unconsolidated joint ventures YEAR ENDED DECEMBER 31, 2021 2020 2019 $ 452,725 $ 343,096 $ 268,315 307,717 (142,892) 42,333 — 659,883 12,764 206,426 — 298,943 (365,709) 42,637 — 318,967 — 194,396 23,000 303,415 (99,194) 46,696 1,284 520,516 13,293 48,597 — (3,751) 2,523 40,763 (205,746) 133,611 61,001 — 14,635 56,822 — (38) 34,272 9,285 13,801 (31,825) — (38) 25,720 36,194 — 13,364 (13,095) (104) 148 FFO (Normalized) $ 801,996 $ 697,992 $ 685,396 (1) Includes depreciation expense related to owned real estate assets (land improvements, buildings, building improvements, leasehold improvements and racking), excluding depreciation related to real estate financing leases. (2) Tax expense associated with the gain on sale of real estate for the years ended December 31, 2021, 2020, and 2019, was $25.4 million, $0.4 million, and $5.4 million, respectively. (3) (4) Includes amortization expense for Data Center In-Place Lease Intangible Assets and Data Center Tenant Relationship Intangible Assets as defined in Note 2.l. to Notes to Consolidated Financial Statements included in this Annual Report. Includes foreign currency transaction (gains) losses, net, debt extinguishment expense and other, net. See Note 2.u. to Notes to Consolidated Financial Statements included in this Annual Report for additional information regarding the components of Other (income) expense, net. (5) These costs include the purchase of personal protective equipment for our employees and incremental cleaning costs of our facilities, among other direct costs. (6) Represents the tax impact of (i) the reconciling items above, which impacts our reported income (loss) from continuing operations before provision (benefit) for income taxes but has an insignificant impact on our reported provision (benefit) for income taxes and (ii) other discrete tax items. Discrete tax items resulted in a provision (benefit) for income taxes of $19.2 million, $(16.8) million and $(1.5) million for the years ended December 31, 2021, 2020 and 2019, respectively. CRITICAL ACCOUNTING ESTIMATES Our discussion and analysis of our financial condition and results of operations are based upon our 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. The following should be read in conjunction with Note 2 to Notes to Consolidated Financial Statements included in this Annual Report, which provides a summary of our significant accounting policies. Our critical accounting estimates include the following, which are listed in no particular order: IRON MOUNTAIN 2021 FORM 10-K 35 Table of Contents Part II REVENUE RECOGNITION Revenue is recognized when or as control of promised goods or services is transferred to the customer, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. See Note 2.r. to Notes to Consolidated Financial Statements included in this Annual Report for additional details on our revenue recognition policies. Revenue for all our lines of business, with the exception of storage revenues in our Global Data Center Business (which is subject to leasing guidance), is recognized in accordance with Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers (“ASC 606”), the application of which requires that we make estimates and judgements that may affect the amount and timing of revenue we recognize. We have determined that the majority of our contracts contain series performance obligations which qualify to be recognized under a practical expedient available in ASC 606 known as the “right to invoice.” This determination allows variable consideration in such contracts to be allocated to and recognized in the period to which the consideration relates, which is typically the period in which it is billed, rather than requiring estimation of variable consideration at the inception of the contract. From time to time, we make payments to entities that are also customers under a revenue contract. These payments are comprised of Customer Inducements (as defined in Note 2.l. to Notes to Consolidated Financial Statements included in this Annual Report). Consideration payable to a customer is treated as a reduction of the transaction price over periods ranging from one to 10 years. If the payment to the customer does not represent payment for a distinct service, revenue is recognized only up to the amount of consideration remaining after customer payment obligations are considered. Contract Fulfillment Costs are amortized over a three year term, which we have determined is consistent with the transfer of the underlying performance obligations to which the assets relate. Different determinations on term length would result in differences in the amount and timing of amortization expense recognized. ACCOUNTING FOR ACQUISITIONS Part of our growth strategy has been to acquire businesses. The purchase price of each acquisition has been determined after due diligence of the target business, market research, strategic planning and the forecasting of expected future results and synergies. Estimated future results and expected synergies are subject to revisions as we integrate each acquisition and attempt to leverage resources. Accounting for acquisitions of a business has resulted in the capitalization of the cost in excess of the estimated fair value of the net assets acquired in each of these acquisitions as goodwill. We estimate the fair values of the assets acquired in each acquisition as of the date of acquisition and these estimates are subject to adjustment based on the final assessments of the fair value of intangible assets (primarily customer relationship and data center lease-based intangible assets), property, plant and equipment (primarily building, building improvements, leasehold improvements, data center infrastructure and racking structures), operating leases, contingencies and income taxes (primarily deferred income taxes). See Note 3 to Notes to Consolidated Financial Statements included in this Annual Report for a description of recent acquisitions. Determining the fair values of the net assets acquired requires management’s judgment and often involves the use of assumptions with respect to future cash inflows and outflows, discount rates and market data, among other items. As it relates to our data center acquisitions, the fair values of the net assets acquired requires management’s judgment and often involves the use of assumptions with respect to (i) certain economic costs (as described more fully in Note 2.l. to Notes to Consolidated Financial Statements included in this Annual Report) avoided by acquiring a data center operation with active tenants that would have otherwise been incurred if the data center operation was purchased vacant, (ii) market rental rates and (iii) expectations of lease renewals and extensions. Due to the inherent uncertainty of future events, actual values of net assets acquired could be different from our estimated fair values and could have a material impact on our financial statements. Of the net assets acquired in our acquisitions, the fair value of owned buildings, including building improvements, customer relationship and data center lease-based intangible assets, racking structures and operating leases are generally the most common and most significant. For significant acquisitions or acquisitions involving new markets or new products, we generally use third parties to assist us in estimating the fair value of owned buildings, including building improvements, customer relationship and lease-based intangible assets and market rental rates for acquired operating leases. For acquisitions that are not significant or do not involve new markets or new products, we generally use third parties to assist us in estimating the fair value of acquired owned buildings, including building improvements, and market rental rates for acquired operating leases. When not using third party appraisals of the fair value of acquired net assets, the fair value of acquired customer relationship intangible assets, above and below market in-place operating leases, and racking structures is determined internally. The fair value of acquired racking structures is determined internally by taking current estimated replacement cost at the date of acquisition for the quantity of racking structures acquired, discounted to take into account the quality (e.g. age, material and type) of the racking structures. We use discounted cash flow models to determine the fair value of customer relationship assets, which requires a significant amount of judgment by management, including estimating expected lives of the relationships, expected future cash flows and discount rates. We determine the fair value of tangible data center assets using an estimated replacement cost at the date of acquisition, then discounting for age, economic and functional obsolescence. 36 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part II Our estimates of fair value are based upon assumptions believed to be reasonable at that time but which are inherently uncertain and unpredictable. Assumptions may be incomplete or inaccurate, and unanticipated events and circumstances may occur, which may affect the accuracy of such assumptions. Total property, plant and equipment and intangible assets acquired in our 2021 acquisitions were approximately $150.1 million and $44.9 million, respectively. IMPAIRMENT OF TANGIBLE AND INTANGIBLE ASSETS ASSETS SUBJECT TO DEPRECIATION OR AMORTIZATION We review long-lived assets and all finite-lived intangible assets for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable. Examples of events or circumstances that may be indicative of impairment include, but are not limited to: • A significant decrease in the market price of an asset; • A significant change in the extent or manner in which a long-lived asset is being used or in its physical condition; • A significant adverse change in legal factors or in the business climate that could affect the value of the asset; • An accumulation of costs significantly greater than the amount originally expected for the acquisition or construction of an asset; • A current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset; and • A current expectation that, more likely than not, an asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. If events indicate the carrying value of such assets may not be recoverable, recoverability of these assets is determined by comparing the sum of the forecasted undiscounted net cash flows of the operation to which the assets relate to their carrying amount. The operations are generally distinguished by the business segment and geographic region in which they operate. If it is determined that we are unable to recover the carrying amount of the assets, the long-lived assets are written down, on a pro rata basis, to fair value. Fair value is determined based on discounted cash flows or appraised values, depending upon the nature of the assets. We did not record impairment charges for any of our long-lived asset and finite-lived intangibles during the years ended December 31, 2021 and 2020. During 2019, we recorded an impairment charge of approximately $24.0 million on the assets associated with the select offerings within our Iron Mountain Iron Cloud portfolio as we explored strategic options regarding how to maintain and support the infrastructure of select offerings within this portfolio. GOODWILL AND OTHER INDEFINITE-LIVED INTANGIBLE ASSETS NOT SUBJECT TO AMORTIZATION Goodwill and intangible assets with indefinite lives are not amortized but are reviewed annually for impairment, or more frequently if impairment indicators arise. Other than goodwill, we currently have no intangible assets that have indefinite lives and which are not amortized. See Note 2.k. to Notes to Consolidated Financial Statements included in this Annual Report for additional details on our goodwill and other indefinite-lived intangible assets policies. We have selected October 1 as our annual goodwill impairment review date. We have performed our annual goodwill impairment review as of October 1, 2021, 2020 and 2019. We concluded that as of October 1, 2021, 2020 and 2019, goodwill was not impaired. Our reporting units at which level we performed our goodwill impairment analysis as of October 1, 2021 were as follows: • North American Records and Information Management reporting • Asia Records and Information Management reporting unit ("Asia unit ("North America RIM") RIM") • Europe Records and Information Management reporting unit • Global Data Center ("Europe RIM") • Latin America Records and Information Management reporting unit ("Latin America RIM") • Australia and New Zealand Records and Information Management reporting unit ("ANZ RIM") • Fine Arts • Entertainment Services See Note 2.k. to Notes to Consolidated Financial Statements included in this Annual Report for a description of our reporting units. IRON MOUNTAIN 2021 FORM 10-K 37 Table of Contents Part II Based on our goodwill impairment analysis as of October 1, 2021, all of our reporting units had estimated fair values exceeding their carrying values by greater than 20%. Our Global Data Center reporting unit had an estimated fair value that exceeded its carrying value by approximately 23%. The reporting unit represented approximately $426.1 million, or 9.5%, of our consolidated goodwill balance at December 31, 2021. The following is a summary of the Global Data Center reporting unit including the goodwill balance (in thousands), percentage by which the fair value of the reporting unit exceeded its carrying value, and certain key assumptions used by us in determining the fair value of the reporting unit as of October 1, 2021: PERCENTAGE BY WHICH THE FAIR VALUE OF THE REPORTING UNIT EXCEEDED THE REPORTING UNIT CARRYING VALUE AS OF OCTOBER 1, 2021 GOODWILL BALANCE AT OCTOBER 1, 2021 REPORTING UNIT AVERAGE ANNUAL CONTRIBUTION MARGIN USED IN DISCOUNTED CASH FLOW AVERAGE ANNUAL CAPITAL EXPENDITURES AS PERCENTAGE OF REVENUE(1) DISCOUNT RATE Global Data Center $428,992 23.0% 6.5% 40.2% 28.0% TERMINAL GROWTH RATE(2) 3.0% KEY ASSUMPTIONS IN THE FAIR VALUE OF REPORTING UNIT MEASUREMENT AS OF OCTOBER 1, 2021 (1) (2) For purposes of our goodwill impairment analysis, the term “capital expenditures” includes both growth investment and recurring capital expenditures. The capital expenditure assumptions in our goodwill impairment analysis include significant growth investment in the next three years. Terminal growth rates are applied in year 10 of our discounted cash flow analysis. Reporting unit valuations have generally been determined using a combined approach based on the present value of future cash flows (the “Discounted Cash Flow Model”) and market multiples (the “Market Approach"). There are inherent uncertainties and judgments involved when determining the fair value of the reporting units for purposes of our annual goodwill impairment testing. The following includes supplemental information to the table above for the Data Center reporting unit where the estimated fair value exceeded its carrying value by approximately 23% as of October 1, 2021. The success of this business and the achievement of certain key assumptions developed by management and used in the Discounted Cash Flow Model are contingent upon various factors including, but not limited to, (i) achieving growth from existing customers, (ii) sales to new customers, (iii) increased market penetration and (iv) accurately timing the capital investments related to expansions. Our Global Data Center Business footprint spans nine markets in the United States: Denver, Colorado; Kansas City, Missouri; Boston, Massachusetts; Boyers, Pennsylvania; Manassas, Virginia; Edison, New Jersey; Columbus, Ohio; and Phoenix and Scottsdale, Arizona and seven international markets: Amsterdam, London, Singapore, Frankfurt (directly and through an unconsolidated joint venture) and through unconsolidated joint ventures in Mumbai, Pune and Noida. We provide enterprise-class data center facilities and hyperscale-ready capacity to protect mission-critical assets and ensure the continued operation of our customers’ IT infrastructure with secure, reliable and flexible data center options. Data centers are highly specialized and secure assets that serve as centralized repositories of server, storage and network equipment. They are capital intensive and designed to provide the space, power, cooling and network connectivity necessary to efficiently operate mission-critical IT equipment. The demand for data center infrastructure is being driven by many factors, but most importantly by significant growth in data as well as an increased demand for outsourcing. In order to attract and retain customers, as well as sustain growth in our existing and new markets, we must have the capability to tailor our facilities and invest capital to meet our customers’ needs. Our estimate of fair value reflects the expected growth in each of our data center markets along with the corresponding capital investments required to meet demand. The business is primarily comprised of acquisitions completed in 2018 and late 2017; therefore, we would expect that the fair value of this reporting unit would closely approximate its carrying value. Key factors that could reasonably be expected to have a negative impact on the estimated fair value of these reporting units and potentially result in impairment charges include, but are not limited to: (i) a deterioration in general economic conditions, (ii) significant adverse changes in regulatory factors or in the business climate, and (iii) adverse actions or assessment by regulators, all of which could result in adverse changes to the key assumptions used in valuing the reporting units. The inability to meet the assumptions used in the Discounted Cash Flow Model and Market Approach for each of the reporting units, or future adverse market conditions not currently known, could lead to a fair value that is less than the carrying value in any one of our reporting units. Reporting unit valuations have generally been determined using a combined approach based on the Discounted Cash Flow Model and Market Approach. The Discounted Cash Flow Model incorporates significant assumptions including future revenue growth rates, operating margins, discount rates and capital expenditures. The Market Approach requires us to make assumptions related to Adjusted EBITDA multiples. Changes in economic and operating conditions impacting these assumptions or changes in multiples could result in goodwill impairments in future periods. In conjunction with our annual goodwill impairment reviews, we reconcile the sum of the valuations of all of our reporting units to our market capitalization as of such dates. 38 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part II Although we believe we have sufficient historical and projected information available to us to test for goodwill impairment, it is possible that actual results could differ from the estimates used in our impairment tests. Of the key assumptions that impact the goodwill impairment test, the expected future cash flows and discount rate are among the most sensitive and are considered to be critical assumptions, as changes to these estimates could have an effect on the estimated fair value of each of our reporting units. We have assessed the sensitivity of these assumptions on each of our reporting units as of October 1, 2021. North America RIM, Europe RIM, Latin America RIM, ANZ RIM, Asia RIM, Fine Arts and Entertainment Services We noted that, based on the estimated fair value of these reporting units determined as of October 1, 2021: • a hypothetical decrease of 10% in the expected annual future cash flows of these reporting units, with all other assumptions unchanged, would have decreased the estimated fair value of these reporting units as of October 1, 2021 by a range of approximately 9.7% to 10.6% but would not, however, have resulted in the carrying value of any of these reporting units with goodwill exceeding their estimated fair value; • a hypothetical increase of 100 basis points in the discount rate, with all other assumptions unchanged, would have decreased the estimated fair value of these reporting units as of October 1, 2021 by a range of approximately 4.2% to 9.9% but would not, however, have resulted in the carrying value of any of these reporting units with goodwill exceeding their estimated fair value. Global Data Center We noted that, as of October 1, 2021, the estimated fair value of the reporting unit: • exceeds its carrying value by approximately 23%. Accordingly, any significant negative change in either the expected annual future cash flows of the reporting unit or the discount rate may result in the carrying value of the reporting unit exceeding its estimated fair value. At December 31, 2021, no factors were identified that would alter the conclusions of our October 1, 2021 goodwill impairment analysis. In making this assessment, we considered a number of factors including operating results, business plans, anticipated future cash flows, transactions and marketplace data. There are inherent uncertainties related to these factors and our judgment in applying them to the analysis of goodwill impairment. INCOME TAXES As a REIT, we are generally permitted to deduct from our federal taxable income the dividends we pay to our stockholders. The income represented by such dividends is not subject to federal taxation at the entity level but is taxed, if at all, at the stockholder level. The income of our domestic TRSs, which hold our domestic operations that may not be REIT-compliant as currently operated and structured, is subject, as applicable, to federal and state corporate income tax. In addition, we and our subsidiaries continue to be subject to foreign income taxes in other jurisdictions in which we have business operations or a taxable presence, regardless of whether assets are held or operations are conducted through subsidiaries disregarded for federal income tax purposes or TRSs. We will also be subject to a separate corporate income tax on any gains recognized on the sale or disposition of any asset previously owned by a C corporation during a five-year period after the date we first owned the asset as a REIT asset that are attributable to "built-in gains" with respect to that asset on that date. We will also be subject to a built-in gains tax on our depreciation recapture recognized into income as a result of accounting method changes in connection with our acquisition activities. If we fail to remain qualified for taxation as a REIT, we will be subject to federal income tax at regular corporate income tax rates. Even if we remain qualified for taxation as a REIT, we may be subject to some federal, state, local and foreign taxes on our income and property in addition to taxes owed with respect to our TRS operations. In particular, while state income tax regimes often parallel the federal income tax regime for REITs, many states do not completely follow federal rules and some do not follow them at all. See Note 10 to Notes to Consolidated Financial Statements included in this Annual Report for additional details on our tax policies. Accounting for income taxes requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the tax and financial reporting bases of assets and liabilities and for loss and credit carryforwards. We measure deferred tax assets and liabilities using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities as a result of a change in tax rates is recognized in income in the period that the change is enacted. Valuation allowances are provided when recovery of deferred tax assets does not meet the more likely than not standard as defined in GAAP. Valuation allowances would be reversed as a reduction to the provision for income taxes if related deferred tax assets are deemed realizable based on changes in facts and circumstances relevant to the recoverability of the asset. IRON MOUNTAIN 2021 FORM 10-K 39 Table of Contents Part II At December 31, 2021, we have federal and state net operating loss carryforwards of which we are expecting an insignificant tax benefit to be realized. We have assets for foreign net operating losses of $85.5 million, with various expiration dates (and in some cases no expiration date), subject to a valuation allowance of approximately 47%. If actual results differ unfavorably from certain of our estimates used, we may not be able to realize all or part of our net deferred income tax assets and additional valuation allowances may be required. Although we believe our estimates are reasonable, no assurance can be given that our estimates reflected in the tax provisions and accruals will equal our actual results. These differences could have a material impact on our income tax provision and operating results in the period in which such determination is made. The evaluation of an uncertain tax position is a two-step process. The first step is a recognition process whereby we determine whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The second step is a measurement process whereby a tax position that meets the more likely than not recognition threshold is calculated to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. We are subject to income taxes in the United States and numerous foreign jurisdictions. We are subject to examination by various tax authorities in jurisdictions in which we have business operations or a taxable presence. We regularly assess the likelihood of additional assessments by tax authorities and provide for these matters as appropriate. As of December 31, 2021 and 2020, we had approximately $27.8 million and $26.0 million, respectively, of reserves related to uncertain tax positions. The reversal of these reserves will be recorded as a reduction of our income tax provision if sustained. Although we believe our tax estimates are appropriate, the final determination of tax audits and any related litigation could result in changes in our estimates. Following our conversion to a REIT in 2014, we concluded that it was not our intent to reinvest our current and future undistributed earnings of our foreign subsidiaries indefinitely outside the United States. As of December 31, 2016, we concluded that it is our intent to indefinitely reinvest our current and future undistributed earnings of certain of our unconverted foreign TRSs outside the United States. During 2021, as a result of the enactment of a tax law and the closing of various acquisitions, we reassessed this intention and concluded that it is no longer our intention to reinvest our undistributed earnings of our foreign TRSs indefinitely outside the United States. As a REIT, future repatriation of incremental undistributed earnings of our foreign subsidiaries will not be subject to federal or state income tax, with the exception of foreign withholding taxes. However, such future repatriations may require distributions to our stockholders in accordance with REIT distribution rules, and any such distribution may then be taxable, as appropriate, at the stockholder level. We expect to provide for foreign withholding taxes on the current and future earnings of all of our foreign subsidiaries as the result of such reassessment. 40 IRON MOUNTAIN 2021 FORM 10-K Table of Contents RESULTS OF OPERATIONS Part II The following information summarizes our results of operations for the year ended December 31, 2021 compared to the year ended December 31, 2020. For a discussion of our results for the year ended December 31, 2020 compared to the year ended December 31, 2019, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 24, 2021. COMPARISON OF YEAR ENDED DECEMBER 31, 2021 TO YEAR ENDED DECEMBER 31, 2020 AND COMPARISON OF YEAR ENDED DECEMBER 31, 2020 TO YEAR ENDED DECEMBER 31, 2019 (IN THOUSANDS): Revenues Operating Expenses Operating Income Other Expenses, Net Income from Continuing Operations Income (Loss) from Discontinued Operations, Net of Tax Net Income Net Income Attributable to Noncontrolling Interests Net Income Attributable to Iron Mountain Incorporated Adjusted EBITDA(1) Adjusted EBITDA Margin(1) Revenues Operating Expenses Operating Income Other Expenses, Net Income from Continuing Operations Income (Loss) from Discontinued Operations, Net of Tax Net Income Net Income Attributable to Noncontrolling Interests Net Income Attributable to Iron Mountain Incorporated Adjusted EBITDA(1) Adjusted EBITDA Margin(1) YEAR ENDED DECEMBER 31, 2021 2020 DOLLAR CHANGE PERCENTAGE CHANGE $ 4,491,531 $ 4,147,270 $ 344,261 3,637,359 3,212,485 854,172 401,447 452,725 — 452,725 2,506 450,219 1,634,699 $ $ 934,785 591,689 343,096 — 343,096 403 $ $ 342,693 1,475,721 $ $ 36.4 % 35.6 % 424,874 (80,613) (190,242) 109,629 — 109,629 2,103 107,526 158,978 8.3 % 13.2 % (8.6) % (32.2) % 32.0 % — % 32.0 % 521.8 % 31.4 % 10.8 % YEAR ENDED DECEMBER 31, 2020 2019 DOLLAR CHANGE PERCENTAGE CHANGE $ 4,147,270 $ 4,262,584 $ (115,314) 3,212,485 3,481,246 934,785 591,689 343,096 — 343,096 403 781,338 513,127 268,211 104 268,315 938 $ $ 342,693 1,475,721 $ $ 267,377 1,469,009 $ $ 35.6 % 34.5 % (268,761) 153,447 78,562 74,885 (104) 74,781 (535) 75,316 6,712 (2.7) % (7.7) % 19.6 % 15.3 % 27.9 % (100.0) % 27.9 % (57.0) % 28.2 % 0.5 % (1) See “Non-GAAP Measures—Adjusted EBITDA” in this Annual Report for the definitions of Adjusted EBITDA and Adjusted EBITDA Margin, reconciliation of Adjusted EBITDA to Income (Loss) from Continuing Operations and a discussion of why we believe these non-GAAP measures provide relevant and useful information to our current and potential investors. IRON MOUNTAIN 2021 FORM 10-K 41 Table of Contents Part II REVENUES Consolidated revenues consist of the following (in thousands): YEAR ENDED DECEMBER 31, PERCENTAGE CHANGE 2021 2020 DOLLAR CHANGE ACTUAL CONSTANT CURRENCY(1) IMPACT OF ACQUISITIONS ORGANIC GROWTH(2) Storage Rental $ 2,870,119 $ 2,754,091 $ 116,028 Service 1,621,412 1,393,179 228,233 Total Revenues $ 4,491,531 $ 4,147,270 $ 344,261 4.2 % 16.4 % 8.3 % 2.8 % 14.7 % 6.8 % 0.2 % 1.5 % 0.7 % 2.6 % 13.2 % 6.1 % YEAR ENDED DECEMBER 31, PERCENTAGE CHANGE 2020 2019 DOLLAR CHANGE ACTUAL CONSTANT CURRENCY(1) IMPACT OF ACQUISITIONS ORGANIC GROWTH(2) Storage Rental $ 2,754,091 $ 2,681,087 $ 73,004 2.7 % Service 1,393,179 1,581,497 (188,318) (11.9) % Total Revenues $ 4,147,270 $ 4,262,584 $ (115,314) (2.7) % 3.8 % (11.0) % (1.7) % 1.4 % 1.8 % 1.6 % 2.4 % (12.8) % (3.3) % (1) Constant currency growth rates are calculated by translating the 2020 results at the 2021 average exchange rates and the 2019 results at the 2020 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, but including the impact of acquisitions of customer relationships. TOTAL REVENUES For the year ended December 31, 2021, the increase in reported consolidated revenue was driven by reported storage rental revenue growth and reported service revenue growth. Foreign currency exchange rate fluctuations increased our reported consolidated revenues by 1.5% in the year ended December 31, 2021 compared to the prior year period. STORAGE RENTAL REVENUES AND SERVICE REVENUES Primary factors influencing the change in reported storage rental revenue and reported service revenue for the year ended December 31, 2021 compared to the year ended December 31, 2020 include the following: STORAGE RENTAL REVENUES • organic storage rental revenue growth driven by increased volume in faster growing markets and our Global Data Center Business segment and revenue management; • a 2.4% increase in total global volume (excluding acquisitions, total global volume increased 0.2%); and • an increase of $37.7 million due to foreign currency exchange rate fluctuations. SERVICE REVENUES • an increase in service activity levels, particularly in regions where governments have lifted or eased COVID-19 related restrictions on our customers' non-essential business operations; • organic service revenue growth reflecting increased service activity levels; and • an increase of $20.8 million due to foreign currency exchange rate fluctuations. 42 IRON MOUNTAIN 2021 FORM 10-K Table of Contents OPERATING EXPENSES COST OF SALES Part II Consolidated Cost of sales (excluding depreciation and amortization) consists of the following expenses (in thousands): Product Cost of Sales and Other 185,018 YEAR ENDED DECEMBER 31, PERCENTAGE CHANGE % OF CONSOLIDATED REVENUES 2021 2020 DOLLAR CHANGE ACTUAL CONSTANT CURRENCY $ 769,617 $ 738,038 $ 31,579 795,802 136,792 731,679 125,591 154,386 64,123 11,201 30,632 4.3 % 8.8 % 8.9 % 3.0 % 7.0 % 7.0 % 19.8 % 18.1 % — 7,648 (7,648) (100.0) % (100.0) % 2021 2020 17.1 % 17.8 % 17.7 % 17.6 % 3.0 % 4.1 % — % 3.0 % 3.7 % 0.2 % $ 1,887,229 $ 1,757,342 $ 129,887 7.4 % 5.8 % 42.0 % 42.4 % PERCENTAGE CHANGE (FAVORABLE)/ UNFAVORABLE (0.7) % 0.1 % — % 0.4 % (0.2) % (0.4) % YEAR ENDED DECEMBER 31, PERCENTAGE CHANGE % OF CONSOLIDATED REVENUES 2020 2019 DOLLAR CHANGE ACTUAL CONSTANT CURRENCY 2020 2019 PERCENTAGE CHANGE (FAVORABLE)/ UNFAVORABLE $ 738,038 $ 814,459 $ (76,421) 731,679 125,591 154,386 7,648 697,330 162,905 158,621 34,349 (37,314) (22.9) % (4,235) (2.7) % — 7,648 100.0 % (9.4) % 4.9 % (7.9) % 17.8 % 19.1 % 6.0 % 17.6 % 16.4 % (22.6) % (1.0) % 100.0 % 3.0 % 3.7 % 0.2 % 3.8 % 3.7 % — % $ 1,757,342 $ 1,833,315 $ (75,973) (4.1) % (2.9) % 42.4 % 43.0 % (1.3) % 1.2 % (0.8) % — % 0.2 % (0.6) % Labor Facilities Transportation COVID-19 Costs Total Cost of sales Labor Facilities Transportation Product Cost of Sales and Other COVID-19 Costs Total Cost of sales Primary factors influencing the change in reported consolidated Cost of sales for the year ended December 31, 2021 compared to the year ended December 31, 2020 include the following: • an increase in labor costs driven by an increase in service activity, particularly in regions where governments have lifted or eased COVID-19 related restrictions on our customers' non-essential business operations, partially offset by benefits from Project Summit; • an increase in facilities expenses driven by increases in rent expense, reflecting the impact from our sale-leaseback activity during the years ended December 31, 2020 and 2021 (which we expect to continue in 2022 as we continue to look for future opportunities to monetize a small portion of our owned industrial real estate assets as part of our ongoing capital recycling program), as well as increases in utilities and property taxes; • an increase in product cost of sales and other driven by an increase in project activity; and • an increase of $25.8 million due to foreign currency exchange rate fluctuations. IRON MOUNTAIN 2021 FORM 10-K 43 Table of Contents Part II SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Consolidated Selling, general and administrative expenses consists of the following expenses (in thousands): YEAR ENDED DECEMBER 31, 2021 2020 PERCENTAGE CHANGE % OF CONSOLIDATED REVENUES DOLLAR CHANGE ACTUAL CONSTANT CURRENCY 2021 2020 PERCENTAGE CHANGE (FAVORABLE)/ UNFAVORABLE General, Administrative and Other $ 760,346 $ 716,213 $ 44,133 6.2 % 5.1 % 16.9 % 17.3 % Sales, Marketing and Account Management COVID-19 Costs Total Selling, general and administrative expenses 262,213 231,365 30,848 13.3 % 11.8 % — 1,637 (1,637) (100.0) % (100.0) % 5.8 % — % 5.6 % — % $ 1,022,559 $ 949,215 $ 73,344 7.7 % 6.6 % 22.8 % 22.9 % (0.4) % 0.2 % — % (0.1) % YEAR ENDED DECEMBER 31, 2020 2019 PERCENTAGE CHANGE % OF CONSOLIDATED REVENUES DOLLAR CHANGE ACTUAL CONSTANT CURRENCY 2020 2019 PERCENTAGE CHANGE (FAVORABLE)/ UNFAVORABLE General, Administrative and Other $ 716,213 $ 745,960 $ (29,747) (4.0) % (3.0) % 17.3 % 17.5 % Sales, Marketing and Account Management COVID-19 Costs Total Selling, general and administrative expenses 231,365 245,704 (14,339) (5.8) % 1,637 — 1,637 100.0 % (5.0) % 100.0 % 5.6 % — % 5.8 % — % $ 949,215 $ 991,664 $ (42,449) (4.3) % (3.4) % 22.9 % 23.3 % (0.2) % (0.2) % — % (0.4) % Primary factors influencing the change in reported consolidated Selling, general and administrative expenses for the year ended December 31, 2021 compared to the year ended December 31, 2020 include the following: • an increase in general, administrative and other expenses, driven by higher wages and benefits, stock-based compensation expense and bonus compensation accruals, partially offset by benefits from Project Summit, as well as lower professional fees and bad debt expense; • an increase in sales, marketing and account management expenses, driven by higher compensation expense, primarily reflecting increased wages and sales commissions, as well as increased marketing costs; and • an increase of $10.1 million due to foreign currency exchange rate fluctuations. DEPRECIATION AND AMORTIZATION Our depreciation and amortization charges result primarily from depreciation related to storage systems, which include racking structures, buildings, building and leasehold improvements and computer systems hardware and software. Amortization relates primarily to customer relationship intangible assets, contract fulfillment costs and data center lease-based intangible assets. Both depreciation and amortization are impacted by the timing of acquisitions. Depreciation expense increased $17.5 million, or 3.9%, on a reported dollar basis for the year ended December 31, 2021 compared to the year ended December 31, 2020. See Note 2.h. to Notes to Consolidated Financial Statements included in this Annual Report for additional information regarding the useful lives over which our property, plant and equipment is depreciated. Amortization expense increased $10.8 million, or 5.3%, on a reported dollar basis for the year ended December 31, 2021 compared to the year ended December 31, 2020. 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, facility upgrade and system integration costs (collectively, "Acquisition and Integration Costs"). Acquisition and Integration Costs do not include costs associated with the formation of joint ventures or costs associated with the acquisition of customer relationships. Acquisition and Integration Costs for the years ended December 31, 2021, 2020 and 2019 was approximately $12.8 million, $0.0 million and $13.3 million, respectively. 44 IRON MOUNTAIN 2021 FORM 10-K Table of Contents RESTRUCTURING CHARGES Part II Restructuring Charges for the years ended December 31, 2021, 2020 and 2019 were approximately $206.4 million, $194.4 million and $48.6 million, respectively, and primarily consisted of employee severance costs and professional fees associated with Project Summit. INTANGIBLE IMPAIRMENTS The intangible impairment charge for the year ended December 31, 2020 was $23.0 million and related to the write-down of goodwill associated with our Fine Arts reporting unit in the first quarter of 2020. GAIN ON DISPOSAL/WRITE-DOWN OF PROPERTY, PLANT AND EQUIPMENT, NET Consolidated gain on disposal/write- down of property, plant and equipment, net The gains primarily consisted of: 2021 Approximately $172.0 million 2020 Approximately $363.5 million YEAR ENDED DECEMBER 31, • Gains associated with sale and sale-leaseback transactions of approximately $164.0 million, of which (i) approximately $127.4 million relates to the sale-leaseback transactions of five facilities in the United Kingdom during the second quarter of 2021 and (ii) approximately $36.6 million relates to the sale and sale-leaseback transactions of nine facilities in the United States during the fourth quarter of 2021. • Gains associated with sale-leaseback transactions of approximately $342.1 million, of which (i) approximately $265.6 million relates to the sale-leaseback transactions of 14 facilities in the United States during the fourth quarter of 2020 and (ii) approximately $76.4 million relates to the sale-leaseback transactions of two facilities in the United States during the third quarter of 2020 • Gains of approximately $24.1 million associated with the Frankfurt JV (as defined below) transaction. OTHER EXPENSES, NET INTEREST EXPENSE, NET Consolidated Interest Expense, Net decreased $0.5 million, to $418.0 million for the year ended December 31, 2021 from $418.5 million for the year ended December 31, 2020. Our weighted average interest rate, inclusive of the commitment fee on the unused portion of our Revolving Credit Facility (as defined below) and fees associated with the letters of credit, was 4.7% and 4.6% at December 31, 2021 and 2020, respectively. See Note 7 to Notes to Consolidated Financial Statements included in this Annual Report for additional information regarding our indebtedness. OTHER (INCOME) EXPENSE, NET Consolidated other (income) expense, net consists of the following (in thousands): DESCRIPTION YEAR ENDED DECEMBER 31, 2021 2020 DOLLAR CHANGE Foreign currency transaction (gains) losses, net $ (15,753) $ 29,830 $ Debt extinguishment expense Other, net Other (Income) Expense, Net — (177,051) 68,300 45,415 (45,583) (68,300) (222,466) $ (192,804) $ 143,545 $ (336,349) FOREIGN CURRENCY TRANSACTION (GAINS) LOSSES, NET We recorded net foreign currency transaction gains of $15.8 million in the year ended December 31, 2021, based on period-end exchange rates. These gains resulted primarily from the impact of changes in the exchange rate of the Euro and the British pound sterling against the United States dollar compared to December 31, 2020 on our intercompany balances with and between certain of our subsidiaries. IRON MOUNTAIN 2021 FORM 10-K 45 Table of Contents Part II DEBT EXTINGUISHMENT EXPENSE Debt extinguishment expense represents the call premiums and write-off of unamortized deferred financing costs associated with the early redemption of the 6% Senior Notes due 2023, the 43/8% Senior Notes due 2021, the 53/4% Senior Subordinated Notes due 2024, the 53/8% CAD Senior Notes due 2023, the 3% Euro Senior Notes due 2025 and the 53/8% Senior Notes due 2026. OTHER, NET Other, net for the year ended December 31, 2021 consists primarily of (a) a gain of approximately $179.0 million associated with our IPM Divestment and (b) a gain of approximately $20.3 million associated with the loss of control and related deconsolidation, as of May 18, 2021, of one of our wholly owned Netherlands subsidiaries, for which we had value-added tax liability exposure that was recorded in 2019, partially offset by (c) losses on our equity method investments. Other, net for the year ended December 31, 2020 consists primarily of (a) changes in the estimated value of our mandatorily redeemable noncontrolling interests and (b) losses on our equity method investments. PROVISION (BENEFIT) FOR INCOME TAXES Our effective tax rates for the years ended December 31, 2021 and 2020 were 28.0% and 7.9%, respectively. Our effective tax rate is subject to variability in the future due to, among other items: (1) changes in the mix of income between our QRSs and our TRSs, as well as among the jurisdictions in which we operate; (2) tax law changes; (3) volatility in foreign exchange gains and losses; (4) the timing of the establishment and reversal of tax reserves; and (5) our ability to utilize net operating losses that we generate. The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate were: YEAR ENDED DECEMBER 31, 2021 The benefit derived from the dividends paid deduction of $8.2 million which was offset by (1) the impact of differences in the tax rates at which our foreign earnings are subject to, resulting in a tax provision of $9.9 million, and (2) foreign withholding taxes of $23.7 million, which were either paid during the year or accrued, for the deferred tax liability for the U.S. tax impact of undistributed earnings of foreign TRSs that are no longer intended to be permanently reinvested outside the United States. 2020 The benefit derived from the dividends paid deduction of $60.4 million and the impact of differences in the tax rates at which our foreign earnings are subject to, resulting in a tax provision of $9.5 million. As a REIT, we are entitled to a deduction for dividends paid, resulting in a substantial reduction of federal income tax expense. As a REIT, substantially all of our income tax expense will be incurred based on the earnings generated by our foreign subsidiaries and our domestic TRSs. We are subject to income taxes in the United States and numerous foreign jurisdictions. We are subject to examination by various tax authorities in jurisdictions in which we have business operations or a taxable presence. We regularly assess the likelihood of additional assessments by tax authorities and provide for these matters as appropriate. Although we believe our tax estimates are appropriate, the final determination of tax audits and any related litigation could result in changes in our estimates. 46 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part II INCOME (LOSS) FROM CONTINUING OPERATIONS AND ADJUSTED EBITDA The following table reflects the effect of the foregoing factors on our consolidated income (loss) from continuing operations and Adjusted EBITDA (in thousands): Income (Loss) from Continuing Operations $ 452,725 $ 343,096 $ 109,629 32.0 % Income (Loss) from Continuing Operations as a percentage of Consolidated Revenue 10.1 % 8.3 % Adjusted EBITDA Adjusted EBITDA Margin $ 1,634,699 $ 1,475,721 $ 158,978 10.8 % 36.4 % 35.6 % YEAR ENDED DECEMBER 31, 2021 2020 DOLLAR CHANGE PERCENTAGE CHANGE Income (Loss) from Continuing Operations $ 343,096 $ 268,211 $ 74,885 27.9 % Income (Loss) from Continuing Operations as a percentage of Consolidated Revenue 8.3 % 6.3 % Adjusted EBITDA Adjusted EBITDA Margin $ 1,475,721 $ 1,469,009 $ 6,712 0.5 % 35.6 % 34.5 % YEAR ENDED DECEMBER 31, 2020 2019 DOLLAR CHANGE PERCENTAGE CHANGE Consolidated Adjusted EBITDA Margin for the year ended December 31, 2021 increased by 80 basis points compared to the prior year, reflecting improved service revenue trends, benefits from Project Summit, revenue management and ongoing cost containment measures, partially offset by higher compensation expense and sales commissions. ↑ INCREASED BY $159.0 MILLION OR 10.8% Consolidated Adjusted EBITDA IRON MOUNTAIN 2021 FORM 10-K 47 Table of Contents Part II SEGMENT ANALYSIS See the discussion of Business Segments under Item I and Note 11 to Notes to Consolidated Financial Statements, both included in this Annual Report, for a description of our reportable operating segments. GLOBAL RIM BUSINESS (IN THOUSANDS) YEAR ENDED DECEMBER 31, PERCENTAGE CHANGE 2021 2020 DOLLAR CHANGE ACTUAL CONSTANT CURRENCY IMPACT OF ACQUISITIONS ORGANIC GROWTH Storage Rental Service $ 2,471,894 $ 2,373,783 $ 98,111 1,504,269 1,325,497 178,772 Segment Revenue $ 3,976,163 $ 3,699,280 $ 276,883 Segment Adjusted EBITDA $ 1,734,227 $ 1,574,069 $ 160,158 Segment Adjusted EBITDA Margin 43.6 % 42.6 % 4.1 % 13.5 % 7.5 % 2.6 % 11.8 % 5.9 % 0.7 % 0.6 % 0.7 % 1.9 % 11.2 % 5.2 % YEAR ENDED DECEMBER 31, PERCENTAGE CHANGE 2020 2019 DOLLAR CHANGE ACTUAL CONSTANT CURRENCY IMPACT OF ACQUISITIONS ORGANIC GROWTH Storage Rental Service $ 2,373,783 $ 2,320,076 $ 53,707 1,325,497 1,492,357 (166,860) Segment Revenue $ 3,699,280 $ 3,812,433 $ (113,153) Segment Adjusted EBITDA $ 1,574,069 $ 1,566,065 $ 8,004 Segment Adjusted EBITDA Margin 42.6 % 41.1 % 2.3 % (11.2) % (3.0) % 3.6 % (10.2) % (1.8) % 1.7 % 1.9 % 1.8 % 1.9 % (12.1) % (3.6) % 3-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 year ended December 31, 2021 compared to the year ended December 31, 2020 include the following: • organic storage rental revenue growth driven by revenue management and volume; • a 2.3% increase in global records management volume (excluding acquisitions, global records management volume increased 0.2%); • organic service revenue growth mainly driven by increased traditional service activity levels, particularly in regions where governments have lifted or eased COVID-19 related restrictions on our customers' non-essential business operations, and growth in our Global Digital Solutions and Secure IT Asset Disposition businesses; • an increase in revenue of $54.6 million due to foreign currency exchange rate fluctuations; and • a 100 basis point increase in Adjusted EBITDA Margin primarily driven by benefits from Project Summit, revenue management, ongoing cost containment measures and lower bad debt expense, partially offset by increases in compensation, benefits, sales commissions and rent expense. 48 IRON MOUNTAIN 2021 FORM 10-K $2,320.1$1,492.4$3,812.4$2,373.8$1,325.5$3,699.3$2,471.9$1,504.3$3,976.2201920202021$0$500$1,000$1,500$2,000$2,500$3,000$3,500$4,000$1,566.1$1,574.1$1,734.241.1%42.6%43.6%Segment AdjustedEBITDA Margin Table of Contents Part II GLOBAL DATA CENTER BUSINESS (IN THOUSANDS) Storage Rental Service Segment Revenue Segment Adjusted EBITDA YEAR ENDED DECEMBER 31, PERCENTAGE CHANGE 2021 289,592 37,306 326,898 137,349 $ $ $ $ $ $ 2020 263,695 DOLLAR CHANGE $ 25,897 15,617 21,689 279,312 $ 47,586 126,576 $ 10,773 ACTUAL 9.8 % 138.9 % 17.0 % CONSTANT CURRENCY 9.0 % IMPACT OF ACQUISITIONS 1.0 % ORGANIC GROWTH 8.0 % 137.7 % 16.2 % — % 0.7 % 137.7 % 15.5 % Segment Adjusted EBITDA Margin 42.0 % 45.3 % YEAR ENDED DECEMBER 31, PERCENTAGE CHANGE 2020 2019 DOLLAR CHANGE ACTUAL CONSTANT CURRENCY IMPACT OF ACQUISITIONS ORGANIC GROWTH Storage Rental Service Segment Revenue Segment Adjusted EBITDA $ 263,695 $ 246,925 $ 16,770 15,617 279,312 126,576 $ $ 10,226 5,391 $ $ 257,151 $ 22,161 121,517 $ 5,059 Segment Adjusted EBITDA Margin 45.3 % 47.3 % 6.8 % 52.7 % 8.6 % 6.5 % 51.5 % 8.3 % — % — % — % 6.5 % 51.5 % 8.3 % 3-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 and Adjusted EBITDA Margin in our Global Data Center Business segment for the year ended December 31, 2021 compared to the year ended December 31, 2020 include the following: • organic storage rental revenue growth from leases signed during 2021 and in prior periods, and service revenue growth from project revenue, partially offset by churn of 890 basis points; • an increase in Adjusted EBITDA primarily driven by organic storage rental revenue growth; and • a 330 basis point decrease in Adjusted EBITDA Margin reflecting a change in revenue mix due to lower margin project revenue during the period, which is expected to have a temporary impact on segment margins. IRON MOUNTAIN 2021 FORM 10-K 49 $246.9$10.2$257.2$263.7$15.6$279.3$289.6$37.3$326.9201920202021$0$50$100$150$200$250$300$350$121.5$126.6$137.347.3%45.3%42.0%Segment AdjustedEBITDA Margin Table of Contents Part II CORPORATE AND OTHER BUSINESS (IN THOUSANDS) YEAR ENDED DECEMBER 31, PERCENTAGE CHANGE 2021 2020 DOLLAR CHANGE ACTUAL CONSTANT CURRENCY IMPACT OF ACQUISITIONS ORGANIC GROWTH Storage Rental Service Segment Revenue Segment Adjusted EBITDA Segment Adjusted EBITDA as a Percentage of Consolidated Revenue $ 108,633 $ 116,613 $ (7,980) 79,837 188,470 (236,877) $ $ $ $ 52,065 27,772 168,678 $ 19,792 (224,924) $ (11,953) (5.3) % (5.4) % (6.8) % 53.3 % 11.7 % (7.5) % 50.5 % 10.5 % (12.3) % 25.9 % (1.2) % 4.8 % 24.6 % 11.7 % YEAR ENDED DECEMBER 31, PERCENTAGE CHANGE 2020 2019 DOLLAR CHANGE ACTUAL CONSTANT CURRENCY IMPACT OF ACQUISITIONS ORGANIC GROWTH Storage Rental Service Segment Revenue Segment Adjusted EBITDA Segment Adjusted EBITDA as a Percentage of Consolidated Revenue $ 116,613 $ 114,086 $ 2,527 52,065 168,678 (224,924) $ $ $ $ 78,914 (26,849) 193,000 $ (24,322) (218,573) $ (6,351) (5.4) % (5.1) % 2.2 % (34.0) % (12.6) % 2.1 % 34.1 % (12.7) % (1.1) % 0.3 % (0.5) % 3.2 % (34.4) % (12.2) % Primary factors influencing the change in revenue and Adjusted EBITDA in our Corporate and Other Business segment for the year ended December 31, 2021 compared to the year ended December 31, 2020 include the following: • organic service revenue growth mainly driven by increased service activity levels in our Fine Arts business, particularly in regions where governments have lifted or eased COVID-19 related restrictions on our customers' non-essential business operations; and • a decrease in Adjusted EBITDA driven by higher wages, benefits and bonus compensation accruals, partially offset by benefits from Project Summit, decreased professional fees, ongoing cost containment measures and improved service revenue trends. 50 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part II 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 or equity). 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 and pending business acquisitions and normal business operation needs. PROJECT SUMMIT As disclosed above, in October 2019, we announced Project Summit. From the inception of Project Summit through December 31, 2021, we have incurred approximately $450.0 million of Restructuring Charges related to Project Summit, primarily related to employee severance costs, internal costs associated with the development and implementation of Project Summit initiatives and professional fees. From the inception of Project Summit through December 31, 2021, we have also incurred approximately $33.8 million of capital expenditures. As of December 31, 2021, we have completed Project Summit. CASH FLOWS The following is a summary of our cash balances and cash flows (in thousands) as of and for the years ended December 31, Cash Flows from Operating Activities - Continuing Operations $ 758,902 $ 987,657 $ 966,655 Cash Flows from Investing Activities - Continuing Operations Cash Flows from Financing Activities - Continuing Operations Cash and Cash Equivalents, including Restricted Cash, End of Year (473,313) (220,806) 255,828 (85,440) (886,699) 205,063 (735,946) (198,973) 193,555 2021 2020 2019 A. CASH FLOWS FROM OPERATING ACTIVITIES For the year ended December 31, 2021, net cash flows provided by operating activities decreased by $228.8 million compared to the prior year period primarily due to a decrease in cash from working capital of $266.0 million, primarily related to the collections of accounts receivable and timing of accounts payable and accrued expenses, partially offset by an increase in net income (including non-cash charges) of $37.2 million. B. CASH FLOWS FROM INVESTING ACTIVITIES Our significant investing activities during the year ended December 31, 2021 are highlighted below: • We paid cash for capital expenditures of $611.1 million. Additional details of our capital spending are included in the “Capital Expenditures” section below. • We paid cash for acquisitions (net of cash acquired) of $204.0 million, primarily funded by borrowings under our Revolving Credit Facility. • We received $278.3 million in proceeds from sales of property, plant and equipment, primarily related to proceeds from sale and sale-leaseback transactions of 14 facilities in the United Kingdom and the United States during the second and fourth quarters of 2021. • We received $213.9 million in net proceeds from the IPM Divestment. C. CASH FLOWS FROM FINANCING ACTIVITIES Our significant financing activities for the year ended December 31, 2021 included: • Net proceeds of $737.8 million associated with the issuance of the 5% Notes due 2032 (as defined below). • Net payments of $192.3 million primarily associated with repayment of borrowings under the Revolving Credit Facility and the Accounts Receivable Securitization Program. • Purchase of noncontrolling interest of $75.0 million. • Payment of dividends in the amount of $718.3 million on our common stock. IRON MOUNTAIN 2021 FORM 10-K 51 Table of Contents Part II CAPITAL EXPENDITURES We present two categories of capital expenditures: (1) Growth Investment Capital Expenditures and (2) Recurring Capital Expenditures with the following sub-categories: (i) Data Center; (ii) Real Estate; (iii) Innovation and Other (for Growth Investment Capital Expenditures only); and (iv) Non-Real Estate (for Recurring Capital Expenditures only). GROWTH INVESTMENT CAPITAL EXPENDITURES: • Data Center: Expenditures primarily related to investments in new construction of data center facilities (including the acquisition of land and development of facilities) or capacity expansion in existing buildings. • Real Estate: Expenditures primarily related to investments in land, buildings, building improvements, leasehold improvements and racking structures to grow our revenues or achieve operational efficiencies. • Innovation and Other: Discretionary capital expenditures for significant new products and services, restructuring (including Project Summit), and integration of acquisitions. RECURRING CAPITAL EXPENDITURES: • Real Estate: Expenditures primarily related to the replacement of components of real estate assets such as buildings, building improvements, leasehold improvements and racking structures. • Non-Real Estate: Expenditures primarily related to the replacement of containers and shred bins, warehouse equipment, fixtures, computer hardware, or third-party or internally-developed software assets that support the maintenance of existing revenues or avoidance of an increase in costs. • Data Center: Expenditures related to the upgrade or re-configuration of existing data center assets. The following table presents our capital spend for 2021, 2020 and 2019 organized by the type of the spending as described above. NATURE OF CAPITAL SPEND (IN THOUSANDS) Growth Investment Capital Expenditures: Data Center Real Estate Innovation and Other Total Growth Investment Capital Expenditures Recurring Capital Expenditures: Real Estate Non-Real Estate Data Center Total Recurring Capital Expenditures Total Capital Spend (on accrual basis) Net increase (decrease) in prepaid capital expenditures Net decrease (increase) in accrued capital expenditures Total Capital Spend (on cash basis) 2021 2020 2019 $ 308,701 $ 216,491 $ 401,902 112,441 37,078 458,220 67,032 67,822 13,347 148,201 606,421 1,343 3,318 67,217 18,810 302,518 51,009 76,124 15,959 143,092 445,610 1,836 (9,183) 133,093 17,555 552,550 55,444 74,092 8,589 138,125 690,675 510 1,798 $ 611,082 $ 438,263 $ 692,983 Excluding capital expenditures associated with potential future acquisitions, we expect total capital expenditures of approximately $850.0 million for the year ending December 31, 2022. Of this, we expect our capital expenditures for growth investment to be approximately $700.0 million, and our recurring capital expenditures to approach $155.0 million. Approximately three-quarters of our expected capital expenditures for growth investment relates to Global Data Center Business development spend. DIVIDENDS See Note 9 to Notes to Consolidated Financial Statements included in this Annual Report for information on dividends. 52 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part II 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 December 31, 2021 is related to cash and cash equivalents. See Note 2.f. to Notes to the Consolidated Financial Statements included in this Annual Report for information on our money market funds. Long-term debt as of December 31, 2021 is as follows (in thousands): Revolving Credit Facility Term Loan A Term Loan B Australian Dollar Term Loan (the "AUD Term Loan") UK Bilateral Revolving Credit Facility 37/8% GBP Senior Notes due 2025 (the "GBP Notes") 47/8% Senior Notes due 2027 (the "47/8% Notes due 2027") 51/4% Senior Notes due 2028 (the "51/4% Notes due 2028") 5% Senior Notes due 2028 (the "5% Notes due 2028") 47/8% Senior Notes due 2029 (the "47/8% Notes due 2029") 51/4% Senior Notes due 2030 (the "51/4% Notes due 2030") 41/2% Senior Notes due 2031 (the "41/2% Notes") 5% Senior Notes due 2032 (the "5% Notes due 2032") 55/8% Senior Notes due 2032 (the "55/8% Notes") Real Estate Mortgages, Financing Lease Liabilities and Other Accounts Receivable Securitization Program Total Long-term Debt Less Current Portion DECEMBER 31, 2021 DEBT (INCLUSIVE OF DISCOUNT) UNAMORTIZED DEFERRED FINANCING COSTS CARRYING AMOUNT $ — $ (5,174) $ (5,174) 203,125 672,847 223,182 189,168 540,481 1,000,000 825,000 500,000 1,000,000 1,300,000 1,100,000 750,000 600,000 460,648 — 9,364,451 (310,084) — (4,995) (656) (709) (3,912) (8,176) (7,380) (4,763) (11,211) (12,911) (11,404) (13,782) (6,147) (840) (450) 203,125 667,852 222,526 188,459 536,569 991,824 817,620 495,237 988,789 1,287,089 1,088,596 736,218 593,853 459,808 (450) (92,510) 9,271,941 656 (309,428) Long-term Debt, Net of Current Portion $ 9,054,367 $ (91,854) $ 8,962,513 See Note 7 to Notes to Consolidated Financial Statements included in this Annual Report for additional information regarding our long-term debt. CREDIT AGREEMENT Our credit agreement (the "Credit Agreement") consists of a revolving credit facility (the “Revolving Credit Facility”) and a term loan (the “Term Loan A”). The Revolving Credit Facility enables IMI and certain of its United States and foreign subsidiaries to borrow in United States dollars and (subject to sublimits) a variety of other currencies (including Canadian dollars, British pounds sterling and Euros, among other currencies) in an aggregate outstanding amount not to exceed $1,750.0 million. Under the Credit Agreement, we have the option to request additional commitments of up to $1,260.0 million, in the form of term loans or through increased commitments under the Revolving Credit Facility, subject to the conditions specified in the Credit Agreement. The Credit Agreement is scheduled to mature on June 3, 2023, at which point all obligations become due. The original principal amount of the Term Loan A was $250.0 million and is to be paid in quarterly installments in an amount equal to $3.1 million per quarter, with the remaining balance due on June 3, 2023. IMI and the Guarantors guarantee all obligations under the Credit Agreement. The interest rate on borrowings under the Credit Agreement varies depending on our choice of interest rate and currency options, plus an applicable margin, which varies based on our consolidated leverage ratio. Additionally, the Credit Agreement requires the payment of a commitment fee on the unused portion of the Revolving Credit Facility, which fee ranges from between 0.25% to 0.4% based on our consolidated leverage ratio and fees associated with outstanding letters of credit. As of December 31, 2021, we had no outstanding borrowings under the Revolving Credit Facility and $203.1 million aggregate outstanding principal amount under the Term Loan A. At December 31, 2021, we had various outstanding letters of credit totaling $3,039 under the Revolving Credit Facility. The amount available for borrowing under the Revolving Credit Facility as of December 31, 2021, which is based on IMI’s leverage ratio, the last 12 months' earnings before interest, taxes, depreciation and amortization and rent expense (“EBITDAR”), other adjustments as defined in the Credit Agreement and current external debt, was $1,747.0 million (which amount represents the maximum availability as of such date). Available borrowings under the Revolving Credit Facility are subject to compliance with our indenture covenants as discussed below. The average interest rate in effect under the Revolving Credit Facility and Term Loan A was 1.9% as of December 31, 2021. IRON MOUNTAIN 2021 FORM 10-K 53 Table of Contents Part II IMI’s wholly owned subsidiary, Iron Mountain Information Management, LLC (“IMIM”), has an incremental term loan B with a principal amount of $700.0 million (the “Term Loan B”). The Term Loan B, which matures on January 2, 2026, was issued at 99.75% of par. The Term Loan B holders benefit from the same security and guarantees as other borrowings under the Credit Agreement. The Term Loan B holders also benefit from the same affirmative and negative covenants as other borrowings under the Credit Agreement; however, the Term Loan B holders are not generally entitled to the benefits of the financial covenants under the Credit Agreement. Principal payments on the Term Loan B are to be paid in quarterly installments of $1.8 million per quarter during the period June 30, 2018 through December 31, 2025, with the balance due on January 2, 2026. The Term Loan B may be prepaid without penalty at any time. The Term Loan B bears interest at a rate of LIBOR plus 1.75%. As of December 31, 2021, we had $673.8 million aggregate outstanding principal amount under the Term Loan B. The interest rate in effect under Term Loan B as of December 31, 2021 was 3.1%. DECEMBER 2021 OFFERING On December 28, 2021, Iron Mountain Information Management Services, Inc., one of our wholly owned subsidiaries, completed a private offering of $750.0 million in aggregate principal amount of the 5% Notes due 2032. The 5% Notes due 2032 were issued at 100.000% of par. The total net proceeds of approximately $738.0 million from the issuance of the 5% Notes due 2032, after deducting the initial purchasers’ commissions, were used to finance the purchase price of the ITRenew Transaction, which closed on January 25, 2022, and to pay related fees and expenses. At December 31, 2021, the net proceeds from the 5% Notes due 2032, were used to temporarily repay borrowings under our Revolving Credit Facility and Accounts Receivable Securitization Program and invest in money market funds. The 5% Notes due 2032 are fully and unconditionally guaranteed, on a senior basis, by IMI and the other Guarantors. UK BILATERAL REVOLVING CREDIT FACILITY Iron Mountain (UK) PLC and Iron Mountain (UK) Data Centre Limited (collectively, the "UK Borrowers") have a 140.0 million British pounds sterling Revolving Credit Facility (the “UK Bilateral Facility”) with Barclays Bank PLC. The maximum amount permitted to be borrowed under the UK Bilateral Facility is 140.0 million British pounds sterling, and we have the option to request additional commitments of up to 125.0 million British pounds sterling, subject to the conditions specified in the UK Bilateral Facility. The UK Bilateral Facility is fully drawn. The UK Bilateral Facility is secured by certain properties in the United Kingdom. IMI and the Guarantors guarantee all obligations under the UK Bilateral Facility. The UK Bilateral Facility was originally scheduled to mature on September 23, 2022, at which point all obligations were to become due. On May 25, 2021, the UK Borrowers entered into an amendment to the UK Bilateral Facility with Barclays Bank PLC to (i) modify the interest rate from LIBOR plus 2.25% to LIBOR plus 2.0% (with flexibility built in for the expected transition away from LIBOR) and (ii) add an additional option to extend the maturity date by one year. After this amendment, the UK Bilateral Facility contains two one-year options that allow us to extend the maturity date beyond the September 23, 2022 expiration date, subject to certain conditions specified in the UK Bilateral Facility, including the lender's consent. On September 23, 2021, the UK Borrowers executed the one-year option to extend the maturity date to September 24, 2023.The interest rate in effect under the UK Bilateral Facility was 2.1% as of December 31, 2021. ACCOUNTS RECEIVABLE SECURITIZATION PROGRAM We participate in an accounts receivable securitization program (the “Accounts Receivable Securitization Program”) involving several of our wholly owned subsidiaries and certain financial institutions. Under the Accounts Receivable Securitization Program, certain of our subsidiaries sell substantially all of their United States accounts receivable balances to our wholly owned special purpose entities, Iron Mountain Receivables QRS, LLC and Iron Mountain Receivables TRS, LLC (the “Accounts Receivable Securitization Special Purpose Subsidiaries”). The Accounts Receivable Securitization Special Purpose Subsidiaries use the accounts receivable balances to collateralize loans obtained from certain financial institutions. The Accounts Receivable Securitization Special Purpose Subsidiaries are consolidated subsidiaries of IMI. IMIM retains the responsibility of servicing the accounts receivable balances pledged as collateral for the Accounts Receivable Securitization Program and IMI provides a performance guaranty. The maximum availability allowed is limited by eligible accounts receivable, as defined under the terms of the Accounts Receivable Securitization Program. On June 28, 2021, we entered into an amendment to the Accounts Receivable Securitization Program to extend the maturity date from July 30, 2021 to July 1, 2023, at which point all obligations become due. The interest rate under the amended Accounts Receivable Securitization Program is LIBOR plus 1.0%. As of December 31, 2021, the maximum amount available under the Accounts Receivable Securitization Program was $300.0 million. There were no amounts outstanding under the Accounts Receivable Securitization Program as of December 31, 2021. Commitment fees at a rate of 40 basis points are charged on amounts made available but not borrowed under the Accounts Receivable Securitization Program. 54 IRON MOUNTAIN 2021 FORM 10-K Table of Contents LETTERS OF CREDIT Part II As of December 31, 2021, we had outstanding letters of credit totaling $36,480, of which $3,039 reduce our borrowing capacity under the Revolving Credit Facility (as described above). The letters of credit expire at various dates between January 2022 and March 2025. DEBT COVENANTS The Credit Agreement (as defined in Note 7 to Notes of Consolidated Financial Statements included in this Annual Report), 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 fixed charge coverage ratio, a net total lease adjusted leverage ratio and a net secured debt lease adjusted leverage 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 EBITDAR-based calculations and the bond indentures use EBITDA-based calculations as the primary measures of financial performance for purposes of calculating leverage and fixed charge coverage ratios. The bond indenture EBITDA-based calculations include our consolidated subsidiaries, other than those we have designated as “Unrestricted Subsidiaries” as defined in the 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, such as Project Summit. 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, such as the COVID-19 pandemic. Our leverage and fixed charge coverage ratios under the Credit Agreement as of December 31, 2021 are as follows: Net total lease adjusted leverage ratio Net secured debt lease adjusted leverage ratio Fixed charge coverage ratio DECEMBER 31, 2021 MAXIMUM/MINIMUM ALLOWABLE 5.3 1.8 2.4 Maximum allowable of 6.5 Maximum allowable of 4.0 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 December 31, 2021. 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 March 2018, we entered into interest rate swap agreements to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness. As of December 31, 2021, we had $350.0 million in notional value of interest rate swap agreements outstanding, which expire in March 2022. Under the interest rate swap agreements, we receive variable rate interest payments associated with the notional amount of each interest rate swap, based upon one-month LIBOR, in exchange for the payment of fixed interest rates as specified in the interest rate swap agreements. 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 once our current interest rate swap agreements expire in March 2022. The forward-starting interest rate swap agreements have $350.0 million in notional value, commence in March 2022 and expire in March 2024. Under the swap agreements, we will receive variable rate interest payments based upon one-month LIBOR, in exchange for the payment of fixed interest rates as specified in the interest rate swap agreements. IRON MOUNTAIN 2021 FORM 10-K 55 Table of Contents Part II We have designated these interest rate swap agreements, including the forward-starting interest rate swap agreements, as cash flow hedges. CROSS-CURRENCY SWAP AGREEMENTS We enter into cross-currency swap agreements to hedge the variability of exchange rate impacts between the United States dollar and the Euro. The cross-currency swap agreements are designated as a hedge of net investment against certain of our Euro denominated subsidiaries and require an exchange of the notional amounts at maturity. In August 2019, we entered into cross-currency swap agreements whereby we notionally exchanged approximately $110.0 million at an interest rate of 6.0% for approximately 99.1 million Euros at a weighted average interest rate of approximately 3.65%. These cross-currency swap agreements expire in August 2023. In September 2020, we entered into cross-currency swap agreements whereby we notionally exchanged approximately $359.2 million at an interest rate of 4.5% for approximately 300.0 million Euros at a weighted average interest rate of approximately 3.4%. These cross-currency swap agreements expire in February 2026. See Note 6 to Notes to Consolidated Financial Statements included in this Annual Report for additional information on our derivative instruments. EQUITY FINANCING In 2017, we entered into a Distribution Agreement with the Agents pursuant to which we could sell, from time to time, up to an aggregate sales price of $500.0 million of our common stock through the At The Market (ATM) Equity Program. On February 15, 2022, the Distribution Agreement was terminated. During the quarter and year ended December 31, 2021, there were no shares of common stock sold under the At The Market (ATM) Equity Program. ACQUISITIONS See Note 3 to Notes to Consolidated Financial Statements included in this Annual Report for information regarding our 2021 acquisitions. INFOFORT ACQUISITION On September 15, 2021, in order to further expand our records management operations in the Middle East and North Africa, we acquired Information Fort, LLC, a records and information management provider, for approximately $90.3 million. FRANKFURT DATA CENTER ACQUISITION On September 23, 2021, in order to further enhance our data center operations in Germany, we completed the acquisition of assets of a Frankfurt data center for approximately 77.9 million Euros (or approximately $91.3 million, based upon the exchange rate between the Euro and the United States dollar on the closing date of this acquisition). OTHER 2021 ACQUISITIONS In addition to the transactions noted above, during the year ended December 31, 2021, in order to enhance our existing operations in the United Kingdom and Indonesia and to expand our operations into Morocco, we completed the acquisition of two records management companies and one art storage company for total cash consideration of approximately $45.1 million. 2022 ACQUISITION OF ITRENEW On January 25, 2022, we acquired an approximately 80% interest in Intercept Parent, Inc. ("ITRenew"), a company with asset lifecycle management operations primarily in the United States, for approximately $725.0 million (the “ITRenew Transaction”). The acquisition agreement also provides us the option to purchase, and the shareholders the option to sell, the remaining approximately 20% interest in ITRenew as follows: (i) approximately 16% on or after the second anniversary of the ITRenew Transaction and (ii) approximately 4% on or after the third anniversary of the ITRenew Transaction (collectively, the “Remaining Interest”), each at a purchase price to be determined based upon the achievement of certain performance metrics, but for no less than $200.0 million in total. 56 IRON MOUNTAIN 2021 FORM 10-K Table of Contents INVESTMENTS Part II See Note 5 to Notes to Consolidated Financial Statements included in this Annual Report for information regarding our joint ventures. 2021 NEWLY FORMED JOINT VENTURE 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. In connection with the formation of the Web Werks JV, we made an initial investment of approximately 3,750.0 million Indian rupees (or approximately $50.1 million, based upon the exchange rate between the United States dollar and Indian rupee as of the closing date of the initial investment) in exchange for a noncontrolling interest in the form of convertible preference shares in the Web Werks JV (the “Initial Web Werks JV Investment”). These shares are convertible into a to-be-determined amount of common shares based upon the achievement of EBITDA targets for the Web Werks JV's fiscal year ending March 31, 2022. Under the terms of the Web Werks JV shareholder agreement, we are required to make additional investments over a period ending May 2023 totaling approximately 7,500.0 million Indian rupees (or approximately $100.0 million, based upon the exchange rate as of December 31, 2021 between the United States dollar and Indian rupee). 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 Consolidated Balance Sheet. The carrying values and equity interests in our joint ventures at December 31, 2021 are as follows (in thousands): Web Werks JV $ Joint venture with AGC Equity Partners ("Frankfurt JV") Joint venture with MakeSpace JV(1)(2) DECEMBER 31, 2021 CARRYING VALUE EQUITY INTEREST 51,140 26,167 30,154 38.50 % 20.00 % 49.99 % (1) In 2021, we made quarterly capital contributions to this joint venture which totaled approximately $26.0 million. (2) In February 2022, the MakeSpace JV entered into an agreement with Clutter, Inc. (“Clutter”) pursuant to which we and MakeSpace contributed our ownership interest in the MakeSpace JV and Clutter’s shareholders contributed their ownership interests in Clutter to create a newly formed venture (the “Clutter JV”). In exchange for our 49.99% interest in the MakeSpace JV, we received an approximate 27% interest in the Clutter JV. NET OPERATING LOSSES At December 31, 2021, we have federal and state net operating loss carryforwards of which we are expecting an insignificant tax benefit to be realized. We have assets for foreign net operating losses of $85.5 million, with various expiration dates (and in some cases no expiration date), subject to a valuation allowance of approximately 47%. IRON MOUNTAIN 2021 FORM 10-K 57 Table of Contents Part II ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. CREDIT RISK Financial instruments that potentially subject us to credit risk consist principally of cash and cash equivalents (including money market funds and time deposits) and accounts receivable. The only significant concentrations of liquid investments as of December 31, 2021 relate to cash and cash equivalents held in money market funds with four “Triple A” rated money market funds and time deposits with one global bank. As per our risk management investment policy, we limit exposure to concentration of credit risk by limiting the amount invested in any one mutual fund to a maximum of 1% of the fund's total assets or in any one financial institution to a maximum of $75.0 million. As of December 31, 2021, our cash and cash equivalents balance, including restricted cash, was $255.8 million. INTEREST RATE RISK Given the recurring nature of our revenues and the long-term nature of our asset base, we have the ability and the preference to use long-term, fixed interest rate debt to finance our business at attractive rates, thereby helping to preserve our long-term returns on invested capital. Occasionally, we may use interest rate swaps as a tool to maintain our targeted level of fixed rate debt. As of December 31, 2021, we had $973.3 million of variable rate debt outstanding with a weighted average variable interest rate of approximately 3.3%, and $8,391.2 million of fixed rate debt outstanding. As of December 31, 2021, approximately 90% of our total debt outstanding was fixed. If the weighted average variable interest rate on our variable rate debt had increased by 1%, our net income for the year ended December 31, 2021 would have been reduced by approximately $12.2 million. See Note 6 to Notes to Consolidated Financial Statements included in this Annual Report for a discussion on our interest rate swaps and Note 7 to Notes to Consolidated Financial Statements included in this Annual Report for a discussion of our long-term indebtedness, including the fair values of such indebtedness as of December 31, 2021. CURRENCY RISK Our international investments may be subject to risks and uncertainties related to fluctuations in currency valuation. Our reporting currency is the United States dollar. However, our international revenues and expenses are generated in the currencies of the countries in which we operate, primarily the British pound sterling, Euro, Canadian dollar, Brazilian real and the Australian dollar. Declines in the value of the local currencies in which we are paid relative to the United States dollar will cause revenues in United States dollar terms to decrease and dollar-denominated liabilities to increase in local currency. The impact of currency fluctuations on our earnings is mitigated by the fact that most operating and other expenses are also incurred and paid in the local currency. We also have several intercompany obligations between our foreign subsidiaries and IMI and our United States-based subsidiaries. In addition, our foreign subsidiaries and IME also have intercompany obligations between them. These intercompany obligations are primarily denominated in the local currency of the foreign subsidiary. We have adopted and implemented a number of strategies to mitigate the risks associated with fluctuations in foreign currency exchange rates. One strategy is to finance certain of our international subsidiaries with debt that is denominated in local currencies, thereby providing a natural hedge. In determining the amount of any such financing, we take into account local tax considerations, among other factors. Another strategy we utilize is for IMI or IMIM, a wholly-owned subsidiary of IMI, to borrow in foreign currencies to hedge our intercompany financing activities. In addition, on occasion, we enter into currency swaps to temporarily or permanently hedge an overseas investment, such as a major acquisition, to lock in certain transaction economics. We have implemented these strategies for our foreign investments in the United Kingdom, Canada, Australia, Latin America and continental Europe. IM UK has financed a portion of its capital needs through the issuance in British pounds sterling of the GBP Notes due 2025. Our Australian business has financed a portion of its capital needs through direct borrowings in Australian dollars under the AUD Term Loan. This creates a tax efficient natural currency hedge. We have entered into cross-currency swap agreements to hedge the variability of exchange rate impacts between the United States dollar and the Euro. These cross-currency swap agreements are designated as a hedge of net investment against certain of our Euro denominated subsidiaries and require an exchange of the notional amounts at maturity. These cross-currency swaps are marked to market at the end of each reporting period and any changes in fair value are recorded as a component of Accumulated other comprehensive items, net. Unrealized gains are recognized as assets, which are recorded as a component of Other within Other assets, net, while unrecognized losses are recognized as liabilities, which are recorded as either a component of (i) Accrued expenses and other current liabilities or (ii) Other long-term liabilities in our Consolidated Balance Sheets. See Note 6 to Notes to Consolidated Financial Statements included in this Annual Report for a discussion on our cross-currency swap agreements. 58 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part II As of and during the year ending December 31, 2021, we had no outstanding forward contracts. At the maturity of any forward contract, we may enter into a new forward contract to hedge movements in the underlying currencies. At the time of settlement, we either pay or receive the net settlement amount from any forward contract and recognize this amount in Other (income) expense, net in the accompanying statements of operations as a realized foreign exchange gain or loss. At the end of each month, we mark the outstanding forward contracts to market and record an unrealized foreign exchange gain or loss for the mark-to-market valuation. Historically, we have not designated any of the forward contracts we have entered as hedges. The impact of devaluation or depreciating currency on an entity depends on the residual effect on the local economy and the ability of an entity to raise prices and/or reduce expenses. Due to our constantly changing currency exposure and the potential substantial volatility of currency exchange rates, we cannot predict the effect of exchange fluctuations on our business. The effect of a change in foreign currency exchange rates on our net investment in foreign subsidiaries is reflected in the “Accumulated Other Comprehensive Items, net” component of equity. A 10% depreciation in year-end 2021 functional currencies, relative to the United States dollar, would result in a reduction in our equity of approximately $300.0 million. ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. The information required by this item is included in Item 15(a) of this Annual Report. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE. None. IRON MOUNTAIN 2021 FORM 10-K 59 Table of Contents Part II ITEM 9A. 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 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 December 31, 2021 (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. MANAGEMENT’S REPORT ON 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. Due to their inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risks that controls may become inadequate because of changes in conditions or that the degree of compliance with policies or procedures may deteriorate. Under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, our management concluded that our internal control over financial reporting was effective as of December 31, 2021. The effectiveness of our internal control over financial reporting has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report which is included in this Annual Report. 60 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part II REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the shareholders and the Board of Directors of Iron Mountain Incorporated OPINION ON INTERNAL CONTROL OVER FINANCIAL REPORTING We have audited the internal control over financial reporting of Iron Mountain Incorporated and subsidiaries (the “Company”) as of December 31, 2021, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control - Integrated Framework (2013) issued by COSO. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2021, of the Company and our report dated February 24, 2022, expressed an unqualified opinion on those financial statements. BASIS FOR OPINION The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. DEFINITION AND LIMITATIONS OF INTERNAL CONTROL OVER FINANCIAL REPORTING A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ DELOITTE & TOUCHE LLP Boston, Massachusetts February 24, 2022 IRON MOUNTAIN 2021 FORM 10-K 61 Table of Contents Part II 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. There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) during the quarter ended December 31, 2021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. ITEM 9B. OTHER INFORMATION. Disclosure Pursuant to Section 13(r) of the Exchange Act Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012 and Section 13(r) of the Exchange Act require an issuer to disclose in its annual and quarterly reports whether it or any of its affiliates have knowingly engaged in certain activities, including specified activities or transactions relating to the Government of Iran (as defined in section 560.304 of title 31 of the Code of Federal Regulations) and to persons designated under Executive Order No. 13382 (70 Fed. Reg. 38567). As previously disclosed in our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020 (the “2020 Quarterly Reports”) and in our Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Annual Report”), during the first quarter of 2020, we determined that one of our non-U.S. subsidiaries provided limited hard copy record, electronic media (e.g., CD), box and container storage and handling services during such quarter, and in prior periods since the reporting requirement took effect, to at least one entity designated under Executive Order No. 13382 (the “Entity”) and one Government of Iran entity - both located outside of Iran. In each case, the customer relationship commenced at a time when U.S. sanctions law did not limit dealings with entities determined to be part of the Government of Iran or designated under Executive Order No. 13382 by non-U.S. entities owned or controlled by U.S. persons. Each relationship automatically continued from year to year without any affirmative step being taken by either party. During the second quarter of 2020, the non-U.S. subsidiary in question notified both entities of its decision to terminate those relationships. We also reported in the 2020 Quarterly Reports and 2020 Annual Report that we had notified the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) of these limited activities and initiated an internal investigation, and, during that investigation, we had identified two additional customer relationships between the subsidiary in question and entities designated under Executive Order No. 13382 and Executive Order No. 13224, neither of which was active and ongoing during the year ended December 31, 2020. We have been actively cooperating with OFAC in its review of this matter. As we reported in our 2020 Annual Report, following the year ended December 31, 2020, we submitted a Final Notice of Voluntary Disclosure (“Final VSD”) with OFAC on January 14, 2021. The Final VSD included a detailed overview of our internal investigation and the remedial measures we have implemented or will be implementing to address the root causes of the potentially violative activity. The Final VSD findings showed that the potential violations were inadvertent. We will continue to cooperate fully with OFAC in its ongoing review of this matter. As we reported in our 2020 Quarterly Reports and our 2020 Annual Report, when the non-U.S. subsidiary terminated its relationship with the Entity during the second quarter of 2020, it also took steps to treat the property held in storage for the Entity as blocked property under regulations administered by OFAC, including by placing blocks and notices on the Entity’s account and instructing relevant employees of the non-U.S. subsidiary. However, as reported in our Quarterly Report for the quarter ended June 30, 2021, notwithstanding such procedures, through a review process, the Company became aware in the second quarter of 2021 that an employee of the non-U.S. subsidiary authorized the destruction of the Entity’s property. The Company conducted a review of the matter which resulted in remediation actions including the termination of the employee. The non-U.S. subsidiary in question did not receive any revenue in connection with this activity and, except for related communications, has not engaged in any other activity with the Entity during the period covered by this report. Consistent with the disclosure contained in the 2020 Annual Report, we do not intend to continue any activity involving the Entity. On August 5, 2021, we submitted an Initial Notice of Voluntary Disclosure to OFAC regarding the destruction of the Entity’s property. We continue to investigate the matter and intend to submit a Final Notice of Voluntary Disclosure to OFAC once the investigation is complete. We will continue to cooperate fully with OFAC in its review of this matter. We continue to enhance our internal processes and procedures designed to identify transactions associated with restricted parties, such as introducing a Global International Sanctions and Trade Law Policy and engaging a more comprehensive third-party screening provider. We are also supplementing our existing compliance training with the launch of global training on sanctions and restricted parties in the first quarter of 2021. We will continue to review and improve our programs and processes, as necessary or appropriate, to comply with all applicable sanctions laws and to comply with the disclosure requirements of Section 13(r) of the Exchange Act. 62 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part II ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS. Not Applicable. IRON MOUNTAIN 2021 FORM 10-K 63 Table of Contents PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE. The information required by Item 10 is incorporated by reference to our Proxy Statement. ITEM 11. EXECUTIVE COMPENSATION. The information required by Item 11 is incorporated by reference to our Proxy Statement. ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS. The information required by Item 12 is incorporated by reference to our Proxy Statement. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE. The information required by Item 13 is incorporated by reference to our Proxy Statement. ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES. The information required by Item 14 is incorporated by reference to our Proxy Statement. IRON MOUNTAIN 2021 FORM 10-K 65 Table of Contents Table of Contents PART IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES. (a) Financial Statements filed as part of this report: IRON MOUNTAIN INCORPORATED Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34) Consolidated Balance Sheets, December 31, 2021 and 2020 Consolidated Statements of Operations, Years Ended December 31, 2021, 2020 and 2019 Consolidated Statements of Comprehensive Income (Loss), Years Ended December 31, 2021, 2020 and 2019 Consolidated Statements of Equity, Years Ended December 31, 2021, 2020 and 2019 Consolidated Statements of Cash Flows, Years Ended December 31, 2021, 2020 and 2019 Notes to Consolidated Financial Statements Financial Statement Schedule III—Schedule of Real Estate and Accumulated Depreciation PAGE 68 70 71 72 73 74 75 125 (b) Exhibits filed as part of this report: As listed in the Exhibit Index following the Financial Statement Schedule III-Schedule of Real Estate and Accumulated Depreciation. IRON MOUNTAIN 2021 FORM 10-K 67 Table of Contents Part IV REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the shareholders and the Board of Directors of Iron Mountain Incorporated OPINION ON THE FINANCIAL STATEMENTS We have audited the accompanying consolidated balance sheets of Iron Mountain Incorporated and subsidiaries (the “Company”) as of December 31, 2021 and 2020, the related consolidated statements of operations, comprehensive income (loss), equity, and cash flows, for each of the three years in the period ended December 31, 2021, and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2021, in conformity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 24, 2022, expressed an unqualified opinion on the Company’s internal control over financial reporting. BASIS FOR OPINION These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. CRITICAL AUDIT MATTER The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. 68 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV GOODWILL - GLOBAL DATA CENTER REPORTING UNIT - REFER TO NOTE 2.K. TO THE FINANCIAL STATEMENTS CRITICAL AUDIT MATTER DESCRIPTION The Company’s evaluation of goodwill for impairment involves the comparison of the fair value of each reporting unit to its carrying value. The Company determined the fair value of the Global Data Center reporting unit using a combined approach based on the present value of future cash flows (the “Discounted Cash Flow Model”) and market multiples (the “Market Approach”). The determination of the fair value using the Discounted Cash Flow Model requires management to make significant assumptions related to future revenue growth rates, operating margins, discount rates and capital expenditures. The determination of the fair value using the Market Approach requires management to make significant assumptions related to adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) multiples. Changes in economic and operating conditions impacting these assumptions or changes in multiples could result in goodwill impairments in future periods. The goodwill balance allocated to the Global Data Center reporting unit was $429 million as of October 1, 2021 (goodwill impairment testing date). The fair value of the Global Data Center reporting unit exceeded its carrying value as of the measurement date and, therefore, no impairment was recognized. The Global Data Center reporting unit’s fair value exceeded its carrying value by less than 25%, accordingly, auditing the assumptions used in the goodwill impairment analysis for this reporting unit involved especially subjective judgment. HOW THE CRITICAL AUDIT MATTER WAS ADDRESSED IN THE AUDIT Our audit procedures related to future revenue growth rates, operating margins and capital expenditures (collectively, the “Forecast”), the selection of discount rates, and Adjusted EBITDA multiples for the Global Data Center reporting unit included the following, among others: • We evaluated management’s ability to accurately forecast by comparing actual results to management’s historical forecasts. • We evaluated the reasonableness of management’s Forecast by comparing it to (1) historical results, (2) internal communications to management and the Board of Directors, and (3) forecasted information included in Company press releases and industry reports of the Company and companies in its peer group. • With the assistance of our fair value specialists, we evaluated the discount rates, including testing the underlying source information and the mathematical accuracy of the calculations, and developing a range of independent estimates and comparing those to the discount rates selected by management. • With the assistance of our fair value specialists, we evaluated the Adjusted EBITDA multiples, including testing the underlying source information and mathematical accuracy of the calculations and comparing the multiples selected by management to its guideline companies. • We tested the effectiveness of controls over the evaluation of goodwill for impairment, including those over the Forecast and the selection of the Adjusted EBITDA multiples and discount rates. /s/ DELOITTE & TOUCHE LLP Boston, Massachusetts February 24, 2022 We have served as the Company’s auditor since 2002. IRON MOUNTAIN 2021 FORM 10-K 69 Table of Contents Part IV IRON MOUNTAIN INCORPORATED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) ASSETS Current Assets: Cash and cash equivalents Accounts receivable (less allowances of $62,009 and $56,981 as of December 31, 2021 and 2020, respectively) Prepaid expenses and other Total Current Assets Property, plant and equipment Less—Accumulated depreciation Property, Plant and Equipment, net Other Assets, Net: Goodwill Customer relationships, customer inducements and data center lease-based intangibles Operating lease right-of-use assets Other Total Other Assets, Net Total Assets LIABILITIES AND EQUITY Current Liabilities: Current portion of long-term debt Accounts payable Accrued expenses and other current liabilities (includes current portion of operating lease liabilities) Deferred revenue Total Current Liabilities Long-term Debt, net of current portion Long-term Operating Lease Liabilities, net of current portion Other Long-term Liabilities Deferred Income Taxes Commitments and Contingencies Redeemable Noncontrolling Interests Equity: Iron Mountain Incorporated Stockholders’ 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 289,757,061 shares and 288,273,049 shares as of December 31, 2021 and 2020, respectively) Additional paid-in capital (Distributions in excess of earnings) Earnings in excess of distributions Accumulated other comprehensive items, net Total Iron Mountain Incorporated Stockholders’ Equity Noncontrolling Interests Total Equity Total Liabilities and Equity DECEMBER 31, 2021 2020 $ 255,828 $ 205,063 961,419 224,020 1,441,267 8,647,303 859,344 205,380 1,269,787 8,246,337 (3,979,159) (3,743,894) 4,668,144 4,502,443 4,463,531 1,181,043 2,314,422 381,624 8,340,620 4,557,609 1,326,977 2,196,502 295,949 8,377,037 $ 14,450,031 $ 14,149,267 $ 309,428 $ 369,145 1,032,537 307,470 2,018,580 8,962,513 2,171,472 144,053 223,934 193,759 359,863 1,146,288 295,785 1,995,695 8,509,555 2,044,598 204,508 198,377 72,411 59,805 — 2,898 — 2,883 4,412,553 4,340,078 (3,221,152) (2,950,339) (338,347) 855,952 1,116 857,068 (255,893) 1,136,729 — 1,136,729 $ 14,450,031 $ 14,149,267 The accompanying notes are an integral part of these consolidated financial statements. 70 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) Revenues: Storage rental Service Total Revenues Operating Expenses: YEAR ENDED DECEMBER 31, 2021 2020 2019 $ 2,870,119 $ 2,754,091 $ 2,681,087 1,621,412 1,393,179 1,581,497 4,491,531 4,147,270 4,262,584 Cost of sales (excluding depreciation and amortization) 1,887,229 1,757,342 1,833,315 Selling, general and administrative Depreciation and amortization Acquisition and Integration Costs Restructuring Charges Intangible impairments (Gain) Loss on disposal/write-down of property, plant and equipment, net Total Operating Expenses Operating Income (Loss) Interest Expense, Net (includes Interest Income of $7,341, $8,312 and $6,559 in 2021, 2020 and 2019, respectively) Other (Income) Expense, Net Income (Loss) from Continuing Operations Before Provision (Benefit) for Income Taxes Provision (Benefit) for Income Taxes Income (Loss) from Continuing Operations Income (Loss) from Discontinued Operations, Net of Tax Net Income (Loss) Less: Net Income (Loss) Attributable to Noncontrolling Interests Net Income (Loss) Attributable to Iron Mountain Incorporated Earnings (Losses) per Share: Net Income (Loss) Attributable to Iron Mountain Incorporated - Basic Net Income (Loss) Attributable to Iron Mountain Incorporated - Diluted Weighted Average Common Shares Outstanding: Basic Diluted $ $ $ 1,022,559 680,422 12,764 206,426 — 949,215 652,069 — 194,396 23,000 991,664 658,201 13,293 48,597 — (172,041) (363,537) (63,824) 3,637,359 3,212,485 3,481,246 854,172 934,785 781,338 417,961 (192,804) 629,015 176,290 452,725 — 452,725 2,506 418,535 143,545 372,705 29,609 343,096 — 419,298 33,898 328,142 59,931 268,211 104 343,096 268,315 403 938 450,219 $ 342,693 $ 267,377 1.56 $ 1.55 $ 1.19 $ 1.19 $ 0.93 0.93 289,457 290,975 288,183 288,643 286,971 287,687 The accompanying notes are an integral part of these consolidated financial statements. IRON MOUNTAIN 2021 FORM 10-K 71 Table of Contents Part IV IRON MOUNTAIN INCORPORATED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (IN THOUSANDS) Net Income (Loss) Other Comprehensive (Loss) Income: Foreign Currency Translation Adjustment Change in Fair Value of Derivative Instruments Total Other Comprehensive (Loss) Income Comprehensive Income (Loss) Comprehensive Income (Loss) Attributable to Noncontrolling Interests YEAR ENDED DECEMBER 31, 2021 2020 2019 $ 452,725 $ 343,096 $ 268,315 (136,410) 52,380 (84,030) 368,695 930 45,779 (39,947) 5,832 348,928 (453) 11,994 (8,783) 3,211 271,526 1,066 Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated $ 367,765 $ 349,381 $ 270,460 The accompanying notes are an integral part of these consolidated financial statements. 72 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED CONSOLIDATED STATEMENTS OF EQUITY (IN THOUSANDS, EXCEPT SHARE DATA) IRON MOUNTAIN INCORPORATED STOCKHOLDERS’ EQUITY COMMON STOCK TOTAL SHARES AMOUNTS ADDITIONAL PAID-IN CAPITAL EARNINGS IN EXCESS OF DISTRIBUTIONS (DISTRIBUTIONS IN EXCESS OF EARNINGS) ACCUMULATED OTHER COMPREHENSIVE ITEMS, NET NONCONTROLLING INTERESTS REDEEMABLE NONCONTROLLING INTERESTS Balance, December 31, 2018 $ 1,862,463 286,321,009 $ 2,863 $ 4,263,348 $ (2,139,493) $ (265,664) $ 1,409 $ 70,532 Cumulative-effect adjustment for adoption of ASC 842 Issuance of shares under employee stock purchase plan and option plans and stock- based compensation Changes in equity related redeemable noncontrolling interests Parent cash dividends declared Foreign currency translation adjustment Change in fair value of derivative instruments Net income (loss) Noncontrolling interests dividends 5,781 — 36,682 978,636 (1,454) (708,561) 11,866 (8,783) 266,233 — — — — — — — — 10 — — — — — — — 5,781 36,672 (1,454) — — — — — — — (708,561) — — 267,377 — — — — — 11,866 (8,783) — — Balance, December 31, 2019 1,464,227 287,299,645 2,873 4,298,566 (2,574,896) (262,581) Issuance of shares under employee stock purchase plan and option plans and stock- based compensation Changes in equity related redeemable noncontrolling interests Parent cash dividends declared Foreign currency translation adjustment Change in fair value of derivative instruments Net income (loss) Noncontrolling interests dividends 37,995 973,404 10 37,985 3,527 (718,136) 46,748 (39,947) 342,315 — — — — — — — — — — — — — 3,527 — — — — — — — (718,136) — — 342,693 — — — — 46,635 (39,947) — — Balance, December 31, 2020 1,136,729 288,273,049 2,883 4,340,078 (2,950,339) (255,893) Issuance of shares under employee stock purchase plan and option plans and stock- based compensation Changes in equity related redeemable noncontrolling interests Parent cash dividends declared Foreign currency translation adjustment Change in fair value of derivative instruments Net income (loss) Noncontrolling interests equity contributions Noncontrolling interests dividends Purchase of noncontrolling interests Redemption of noncontrolling interests 84,004 1,484,012 15 83,989 (11,514) (721,032) (135,165) 52,380 450,355 — — 1,311 — — — — — — — — — — — — — — — — — — — (11,514) — — — — — — — — — — (721,032) — — 450,219 — — — — — — — 52,380 — — — — — Balance, December 31, 2021 $ 857,068 289,757,061 $ 2,898 $ 4,412,553 $ (3,221,152) $ (338,347) $ — — — — — — (1,144) — 265 — — — 113 — (378) — — — — — — 136 — — 1,311 — 1,116 $ — — (3,136) — 128 — 2,082 (1,924) 67,682 — (4,924) — (969) — 781 (2,765) 59,805 — 11,682 — (1,245) — 2,370 2,200 (2,450) 2,567 (2,518) 72,411 (134,834) (331) The accompanying notes are an integral part of these consolidated financial statements. IRON MOUNTAIN 2021 FORM 10-K 73 Table of Contents Part IV IRON MOUNTAIN INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) Cash Flows from Operating Activities: Net income (loss) (Income) loss from discontinued operations YEAR ENDED DECEMBER 31, 2020 2019 2021 $ 452,725 $ 343,096 $ 268,315 — — (104) Adjustments to reconcile net income (loss) to cash flows from operating activities: Depreciation 465,072 447,562 456,323 Amortization (includes amortization of deferred financing costs and discounts of $16,548, $17,376 and $16,740 in 2021, 2020 and 2019, respectively) Intangible impairments Revenue reduction associated with amortization of permanent withdrawal fees and data center above- and below-market leases Stock-based compensation expense Provision (benefit) for deferred income taxes Loss on early extinguishment of debt Gain on IPM Divestment (as defined in Note 4) (Gain) loss on disposal/write-down of property, plant and equipment, net Foreign currency transactions and other, net (Increase) decrease in assets Increase (decrease) in liabilities Cash Flows from Operating Activities-Continuing Operations Cash Flows from Operating Activities-Discontinued Operations Cash Flows from Operating Activities Cash Flows from Investing Activities: Capital expenditures Cash paid for acquisitions, net of cash acquired Acquisition of customer relationships Customer inducements Contract fulfillment costs and third party commissions Net proceeds from IPM Divestment Investments in Joint Ventures and other investments Proceeds from sales of property and equipment and other, net (including real estate) Cash Flows from Investing Activities-Continuing Operations Cash Flows from Investing Activities-Discontinued Operations Cash Flows from Investing Activities Cash Flows from Financing Activities: Repayment of revolving credit facilities, term loan facilities and other debt Proceeds from revolving credit facilities, term loan facilities and other debt Early redemption of senior subordinated and senior notes, including call premiums Net proceeds from sales of senior notes Debt repayment and equity distribution to noncontrolling interests Purchase of noncontrolling interest Parent cash dividends Net proceeds (payments) associated with employee stock-based awards Debt financing costs and other, net Cash Flows from Financing Activities-Continuing Operations Cash Flows from Financing Activities-Discontinued Operations Cash Flows from Financing Activities Effect of Exchange Rates on Cash and Cash Equivalents Increase (decrease) in Cash and Cash Equivalents Cash and Cash Equivalents, including Restricted Cash, Beginning of Year Cash and Cash Equivalents, including Restricted Cash, End of Year Supplemental Information: Cash Paid for Interest Cash Paid for Income Taxes, Net Non-Cash Investing and Financing Activities: Financing Leases Accrued Capital Expenditures Accrued Purchase Price and Other Holdbacks Dividends Payable 231,898 — 8,852 61,001 28,703 — (178,983) (172,041) (6,656) (174,206) 42,537 758,902 — 758,902 (611,082) (203,998) (5,892) (7,402) (58,524) 213,878 (78,623) 278,330 (473,313) — (473,313) 221,883 23,000 9,878 37,674 (12,986) 68,300 — 218,618 — 13,703 35,654 (624) — — (363,537) (63,824) 78,437 (15,443) 149,793 987,657 — 987,657 (438,263) (118,581) (4,346) (10,644) (60,020) — (18,250) 564,664 (85,440) — (85,440) 29,838 5,404 3,352 966,655 — 966,655 (692,983) (58,237) (46,105) (9,371) (76,171) — (19,222) 166,143 (735,946) 5,061 (730,885) (5,164,483) 4,972,214 — (8,604,394) 7,939,458 (2,942,554) (14,535,115) 14,059,818 — 737,812 (2,450) (75,000) (718,340) 25,860 3,581 (220,806) — (220,806) (14,018) 50,765 205,063 255,828 $ 3,465,000 (2,765) — (716,290) 321 (25,475) (886,699) — (886,699) (4,010) 11,508 193,555 205,063 $ 428,111 $ 130,292 $ 390,332 $ 43,468 $ 50,552 $ 88,210 $ — $ 190,559 $ 55,782 $ 91,528 $ — $ 187,867 $ 987,500 (1,924) — (704,526) 1,027 (5,753) (198,973) — (198,973) (8,727) 28,070 165,485 193,555 394,984 61,691 32,742 82,345 4,135 186,021 $ $ $ $ $ $ $ The accompanying notes are an integral part of these consolidated financial statements. 74 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 (In thousands, except share and per share data) 1. NATURE OF BUSINESS The accompanying financial statements represent the consolidated accounts of Iron Mountain Incorporated, a Delaware corporation (“IMI”), and its subsidiaries (“we” or “us”). We help organizations around the world protect their information, reduce storage costs, comply with regulations, facilitate corporate disaster recovery, and better use their information and information technology (“IT”) infrastructure for business advantages, regardless of its format, location or life cycle stage. We do this by storing physical records and data backup media, offering information management solutions, and providing data center space for enterprise-class colocation and opportunistic hyperscale deployments. We offer comprehensive records and information management services and data management services, along with the expertise and experience to address complex storage and information management challenges such as rising storage rental costs, legal and regulatory compliance, and disaster recovery requirements. We provide secure and reliable data center facilities to protect digital information and ensure the continued operation of our customers’ IT infrastructure, with reliable and flexible deployment options. In March 2020, the World Health Organization declared a novel strain of coronavirus (“COVID-19”) a pandemic. The broader impacts of the COVID-19 pandemic on our financial position, results of operations and cash flows, including impacts to the estimates we use in the preparation of our financial statements, remain uncertain and difficult to predict as information continues to evolve, and the severity and duration of the pandemic, including new variants of COVID-19 that may emerge, remains unknown, as is our visibility of its effect on the markets we serve and our customers within those markets. In October 2019, we announced a global program designed to better position us for future growth and achievement of our strategic objectives (“Project Summit”). As of December 31, 2021, we have completed Project Summit. See Note 13. 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. PRINCIPLES OF CONSOLIDATION The accompanying financial statements reflect our financial position, results of operations, comprehensive income (loss), equity and cash flows on a consolidated basis. All intercompany transactions and account balances have been eliminated. B. USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) 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. C. FOREIGN CURRENCY Local currencies are the functional currencies for our operations outside the United States, with the exception of certain foreign holding companies, whose functional currency is the United States dollar. In those instances where the local currency is the functional currency, assets and liabilities are translated at period-end exchange rates, and revenues and expenses are translated at average exchange rates for the applicable period. See Note 2.q. IRON MOUNTAIN 2021 FORM 10-K 75 Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. CASH, CASH EQUIVALENTS AND RESTRICTED CASH 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. E. ALLOWANCE FOR DOUBTFUL ACCOUNTS AND CREDIT MEMO RESERVES 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. In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments-Credit Losses-Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 changes how entities will measure credit losses on most financial assets. The standard eliminates the probable initial recognition of estimated losses and provides a forward-looking expected credit loss model for accounts receivable, loans and other financial instruments. On January 1, 2020 we adopted ASU 2016-13 on a modified retrospective basis for all financial assets measured at amortized cost. The adoption of ASU 2016-13 did not result in a material impact on our consolidated financial statements. Under ASU 2016-13, we calculate and monitor our allowance considering future potential economic and macroeconomic conditions and reasonable and supportable forecasts for expected future collectability of our outstanding receivables, in addition to considering our past loss experience, current and prior trends in our aged receivables and credit memo activity. Our considerations when calculating our allowance include, but are not limited to, the following: the location of our businesses, the composition of our customer base, our product and service lines, potential future economic unrest, and potential future macroeconomic factors, including natural disasters and any impacts associated with the COVID-19 pandemic. Continued adjustments will be made should there be any material change to reasonable and supportable forecasts that may impact our likelihood of collection, as it becomes evident. Our highly diverse global customer base, with no single customer accounting for more than approximately 1% of revenue during the years ended December 31, 2021, 2020 and 2019, limits our exposure to concentration of credit risk. Additionally, we write off uncollectible balances as circumstances warrant, generally, no later than one year past due. Prior to our adoption of ASU 2016-13, we maintained an allowance for doubtful accounts for estimated losses resulting from the potential inability of our customers to make required payments and potential disputes regarding billing and service issues. When calculating the allowance, we considered our past loss experience, current and prior trends in our aged receivables and credit memo activity, current economic conditions, and specific circumstances of individual receivable balances. If the financial condition of our customers were to significantly change, resulting in a significant improvement or impairment of their ability to make payments, an adjustment of the allowance might have been required. A rollforward of allowance for doubtful accounts and credit memo reserves is as follows: YEAR ENDED DECEMBER 31, 2021 2020 2019 BALANCE AT BEGINNING OF THE YEAR CREDIT MEMOS CHARGED TO REVENUE ALLOWANCE FOR BAD DEBTS CHARGED TO EXPENSE DEDUCTIONS AND OTHER(1) BALANCE AT END OF THE YEAR $ 56,981 $ 47,931 $ 26,896 $ (69,799) $ 42,856 43,584 55,118 51,846 34,411 19,389 (75,404) (71,963) 62,009 56,981 42,856 (1) Primarily consists of the issuance of credit memos, the write-off of accounts receivable, allowances associated with businesses acquired and the impact associated with currency translation adjustments. 76 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F. CONCENTRATIONS OF CREDIT RISK Financial instruments that potentially subject us to credit risk consist principally of cash and cash equivalents (including money market funds and time deposits) and accounts receivable. The only significant concentrations of liquid investments as of December 31, 2021 and 2020 related to cash and cash equivalents. At December 31, 2021 and 2020, we had money market funds with four “Triple A” rated money market funds and time deposits with one global bank. As per our risk management investment policy, we limit exposure to concentration of credit risk by limiting the amount invested in any one mutual fund to a maximum of 1% of the fund's total assets or in any one financial institution to a maximum of $75,000. See Note 2.o. G. PREPAID EXPENSES AND ACCRUED EXPENSES There are no prepaid expenses with items greater than 5% of total current assets as of December 31, 2021 and 2020. Accrued expenses and other current liabilities, with items greater than 5% of total current liabilities are shown separately, and consist of the following: DESCRIPTION Interest Dividends Operating lease liabilities Other DECEMBER 31, 2021 2020 $ 124,764 $ 190,559 259,597 457,617 131,448 187,867 250,239 576,734 Accrued expenses and other current liabilities $ 1,032,537 $ 1,146,288 H. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at cost and depreciated using the straight-line method with the following useful lives (in years): DESCRIPTION Buildings and building improvements Leasehold improvements Racking Warehouse equipment/vehicles Furniture and fixtures Computer hardware and software RANGE 5 to 40 5 to 10 or life of the lease (whichever is shorter) 1 to 20 or life of the lease (whichever is shorter) 1 to 10 1 to 10 2 to 5 IRON MOUNTAIN 2021 FORM 10-K 77 Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Property, plant and equipment (including financing leases in the respective category), at cost, consist of the following: DESCRIPTION Land Buildings and building improvements Leasehold improvements Racking Warehouse equipment/vehicles Furniture and fixtures Computer hardware and software Construction in progress Property, plant and equipment DECEMBER 31, 2021 2020 $ 372,411 $ 3,391,143 1,054,757 2,075,473 494,464 50,692 823,649 384,714 354,395 3,040,253 969,273 2,083,199 499,787 52,978 746,993 499,459 $ 8,647,303 $ 8,246,337 Minor maintenance costs are expensed as incurred. Major improvements which extend the life, increase the capacity or improve the safety or the efficiency of property owned are capitalized and depreciated. Major improvements to leased buildings are capitalized as leasehold improvements and depreciated. We capitalize interest expense during the active construction period of major capital projects. Capitalized interest is added to the cost of the underlying assets and is amortized over the useful lives of the assets. During the years ended December 31, 2021, 2020 and 2019, capitalized interest is as follows: YEAR ENDED DECEMBER 31, 2021 2020 2019 Capitalized interest $ 12,673 $ 14,321 $ 15,980 We develop various software applications for internal use. Computer software costs associated with internal use software are expensed as incurred until certain capitalization criteria are met. Third party consulting costs, as well as payroll and related costs for employees directly associated with, and devoting time to, the development of internal use computer software projects (to the extent time is spent directly on the project) are capitalized. Capitalization begins when the design stage of the application has been completed and it is probable that the project will be completed and used to perform the function intended. Capitalization ends when the asset is ready for its intended use. Depreciation begins when the software is placed in service. Computer software costs that are capitalized are periodically evaluated for impairment. During the years ended December 31, 2021, 2020 and 2019, capitalized costs associated with the development of internal use computer software projects are as follows: YEAR ENDED DECEMBER 31, 2021 2020 2019 Capitalized costs associated with the development of internal use computer software projects $ 48,557 $ 38,329 $ 34,650 Entities are required to record the fair value of a liability for an asset retirement obligation in the period in which it is incurred. Asset retirement obligations represent the costs to replace or remove tangible long-lived assets required by law, regulatory rule or contractual agreement. Our asset retirement obligations are primarily the result of requirements under our facility lease agreements which generally have “return to original condition” clauses which would require us to remove or restore items such as shred pits, vaults, demising walls and office build-outs, among others. The significant assumptions used in estimating our aggregate asset retirement obligations are the timing of removals, the probability of a requirement to perform, estimated cost and associated expected inflation rates that are consistent with historical rates and credit-adjusted risk-free rates that approximate our incremental borrowing rate. Our asset retirement obligations at December 31, 2021 and 2020 were $36,493 and $34,537, respectively. 78 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. 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. The majority of our leased facilities are classified as operating leases that, on average, have initial lease terms of five to 10 years, with one or more lease renewal options to extend the lease term. Our lease renewal option terms generally range from one to five years. The exercise of the lease renewal option is at our sole discretion and may contain fixed rent, fair market value based rent or Consumer Price Index rent escalation clauses. We include option periods in the lease term when our failure to renew the lease would result in an economic disincentive, thereby making it reasonably certain that we will renew the lease. We recognize straight line rental expense over the life of the lease and any fair market value or Consumer Price Index rent escalations are recognized as variable lease expense in the period in which the obligation is incurred. In addition, we lease certain vehicles and equipment. Vehicle and equipment leases typically have lease terms ranging from one to seven years. We account for all leases, both operating and financing, in accordance with Accounting Standards Codification ("ASC") Topic 842 Leases, ("ASC 842"). Our accounting policy provides that leases with an initial term of 12 months or less will not be included within the lease right-of-use assets and lease liabilities recognized on our Consolidated Balance Sheets. We will continue to recognize the lease payments for those leases with an initial term of 12 months or less in our Consolidated Statements of Operations on a straight-line basis over the lease term. The lease right-of-use assets and related lease liabilities are classified as either operating or financing. Lease right-of-use assets are calculated as the net present value of future payments plus any capitalized initial direct costs less any tenant improvements or lease incentives. Lease liabilities are calculated as the net present value of future payments. In calculating the present value of the lease payments, we utilize the rate stated in the lease (in the limited circumstances when such rate is explicitly stated) or, if no rate is explicitly stated, we utilize a rate that reflects our securitized incremental borrowing rate by geography for the lease term. We account for nonlease components (which include common area maintenance, taxes, and insurance) with the related lease component. Any variable nonlease components are not included within the lease right-of-use asset and lease liability on our Consolidated Balance Sheets, and instead, are reflected as an expense in the period incurred. At January 1, 2019, we recognized the cumulative effect of initially applying ASC 842 as an adjustment to the opening balance of (Distributions in excess of earnings) Earnings in excess of distributions, resulting in an increase of approximately $5,800 to stockholders’ equity due to certain build to suit leases that were accounted for as financing leases under ASC 840, Leases, but are accounted for as operating leases under ASC 842. Operating and financing lease right-of-use assets and lease liabilities as of December 31, 2021 and 2020 are as follows: DESCRIPTION Assets: DECEMBER 31, 2021 2020 Operating lease right-of-use assets(1) Financing lease right-of-use assets, net of accumulated depreciation(2)(3) $ 2,314,422 $ 2,196,502 298,049 310,534 Liabilities: Current Operating lease liabilities Financing lease liabilities(3) Long-term Operating lease liabilities Financing lease liabilities(3) $ 259,597 $ 41,168 250,239 43,149 $ 2,171,472 $ 2,044,598 315,561 323,162 (1) At December 31, 2021 and 2020, these assets are comprised of approximately 99% real estate related assets (which include land, buildings and racking) and 1% non-real estate related assets (which include warehouse equipment, vehicles, furniture and fixtures and computer hardware and software). (2) At December 31, 2021, these assets are comprised of approximately 69% real estate related assets and 31% non-real estate related assets. At December 31, 2020, these assets are comprised of approximately 72% real estate related assets and 28% non-real estate related assets. (3) 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 Consolidated Balance Sheets. IRON MOUNTAIN 2021 FORM 10-K 79 Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The components of the lease expense for the years ended December 31, 2021, 2020 and 2019 are as follows: DESCRIPTION Operating lease cost(1) Financing lease cost: Depreciation of financing lease right-of-use assets Interest expense for financing lease liabilities YEAR ENDED DECEMBER 31, 2021 2020 2019 545,097 $ 499,464 $ 459,619 50,970 $ 51,629 $ 19,808 19,942 59,258 21,031 $ $ (1) Operating lease cost, the majority of which is included in Cost of sales, includes variable lease costs of $111,949, $111,501 and $105,922 for the years ended December 31, 2021, 2020 and 2019, respectively. Weighted average remaining lease terms and discount rates as of December 31, 2021 and 2020 are as follows: Remaining Lease Term Discount Rate DECEMBER 31, 2021 DECEMBER 31, 2020 OPERATING LEASES FINANCING LEASES OPERATING LEASES FINANCING LEASES 10.9 years 6.6 % 10.9 years 5.9 % 11.1 years 6.9 % 11.5 years 5.9 % The estimated minimum future lease payments as of December 31, 2021, are as follows: YEAR 2022 2023 2024 2025 2026 Thereafter Total minimum lease payments Less amounts representing interest or imputed interest Present value of lease obligations $ OPERATING LEASES(1) SUBLEASE INCOME FINANCING LEASES(1) $ 399,242 $ 5,838 $ 380,690 353,617 328,320 296,895 1,706,142 3,464,906 $ (1,033,837) 2,431,069 5,208 3,631 1,504 1,075 2,271 19,527 $ 55,115 50,122 41,150 38,600 34,731 235,872 455,590 (98,861) 356,729 (1) Estimated minimum future lease payments exclude variable common area maintenance charges, insurance and taxes. At December 31, 2021, we had 14 leases which we have signed but which have not yet commenced and are not included in our lease obligation table above. The total undiscounted minimum lease payments for these leases are approximately $456,700 and have lease terms that range from 10 to 25 years. Each of these leases is expected to commence during 2022. The largest of these leases is for a facility in the United Kingdom that is currently under construction. The exact terms of the lease will be determined upon the completion of building construction, which is expected to occur during late 2022. We expect the rent due in the first year of the lease to be approximately $5,000, and we expect the term of the lease to be approximately 25 years. 80 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Other information: Supplemental cash flow information relating to our leases for the years ended December 31, 2021, 2020 and 2019 is as follows: CASH PAID FOR AMOUNTS INCLUDED IN MEASUREMENT OF LEASE LIABILITIES: 2021 2020 2019 YEAR ENDED DECEMBER 31, Operating cash flows used in operating leases $ 392,987 $ 360,088 $ Operating cash flows used in financing leases (interest) Financing cash flows used in financing leases NON-CASH ITEMS: Operating lease modifications and reassessments New operating leases (including acquisitions and sale-leaseback transactions) J. LONG-LIVED ASSETS 19,808 46,118 19,942 47,829 $ 144,310 $ 282,490 143,382 $ 370,011 338,059 21,031 58,033 108,023 170,464 We review long-lived assets, including all finite-lived intangible assets, for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable. Recoverability of these assets is determined by comparing the sum of the forecasted undiscounted net cash flows of the operation to which the assets relate to their carrying amount. The operations are generally distinguished by the business segment and geographic region in which they operate. If it is determined that we are unable to recover the carrying amount of the assets, the long-lived assets are written down, on a pro rata basis, to fair value. Fair value is determined based on discounted cash flows or appraised values, depending upon the nature of the assets. Long-lived assets, including finite-lived intangible assets, are amortized over their useful lives. Annually, or more frequently if events or circumstances warrant, we assess whether a change in the lives over which long-lived assets, including finite-lived intangible assets, are amortized is necessary. IRON MOUNTAIN 2021 FORM 10-K 81 Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Consolidated gain on disposal/write-down of property, plant and equipment, net for the years ended December 31, 2021, 2020 and 2019 is as follows: 2021(1) YEAR ENDED DECEMBER 31, 2020(1) 2019 172,041 $ 363,537 $ 63,824 Consolidated gain on disposal/write-down of property, plant and equipment, net $ The gains primarily consisted of: • Gains associated with sale and sale-leaseback transactions of approximately $164,000, of which (i) approximately $127,400 relates to the sale-leaseback transactions of five facilities in the United Kingdom during the second quarter of 2021 and (ii) approximately $36,600 relates to the sale and sale-leaseback transactions of nine facilities in the United States during the fourth quarter of 2021. • Gains associated with sale- leaseback transactions of approximately $342,100, of which (i) approximately $265,600 relates to the sale-leaseback transactions of 14 facilities in the United States during the fourth quarter of 2020 and (ii) approximately $76,400 relates to the sale-leaseback transactions of two facilities in the United States during the third quarter of 2020. • Gains of approximately $24,100 associated with the Frankfurt JV Transaction (as defined in Note 3). • Gains associated with sale and sale- leaseback transactions of approximately $67,800 in the United States. • The sale of certain land and buildings of approximately $36,000 in the United Kingdom. Partially offset by losses from: • The impairment charge on the assets associated with the select offerings within our Iron Mountain Iron Cloud portfolio and loss on the subsequent sale of certain IT infrastructure assets and rights to certain hardware and maintenance contracts used to deliver these offerings of approximately $25,000. • The write-down of certain property, plant and equipment of approximately $15,700 in the United States. (1) The gains recognized associated with the sale and sale-leaseback transactions during the years ended December 31, 2021 and 2020 are part of our program to monetize a small portion of our industrial real estate assets. The terms for these leases are consistent with the terms of our lease portfolio, which are disclosed in Note 2.i. K. GOODWILL AND OTHER INDEFINITE-LIVED INTANGIBLE ASSETS Goodwill and intangible assets with indefinite lives are not amortized but are reviewed annually for impairment or more frequently if impairment indicators arise. Other than goodwill, we currently have no intangible assets that have indefinite lives and which are not amortized. We have selected October 1 as our annual goodwill impairment review date. We have performed our annual goodwill impairment review as of October 1, 2021, 2020 and 2019. We concluded that as of October 1, 2021, 2020 and 2019, goodwill was not impaired. During the first quarter of 2020, as discussed in greater detail below, we concluded that we had a triggering event related to our Fine Arts reporting unit, requiring us to perform an interim goodwill impairment test. We concluded that the fair value of our Fine Arts reporting unit was less than its carrying value, and, therefore, we recorded a $23,000 impairment charge on the goodwill associated with this reporting unit during the first quarter of 2020. The following is a discussion regarding (i) interim goodwill impairment review for our Fine Arts reporting unit during the first quarter of 2020 and (ii) the reporting units at which level we tested goodwill for impairment as of October 1, 2021 and 2020 and the composition of these reporting units at December 31, 2021 and 2020 (including the amount of goodwill associated with each reporting unit). When changes occur in the composition of one or more reporting units, the goodwill is reassigned to the reporting units affected based upon their relative fair values. 82 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. INTERIM GOODWILL IMPAIRMENT REVIEW - FINE ARTS, FIRST QUARTER OF 2020 During the first quarter of 2020, we concluded that we had a triggering event related to our Fine Arts reporting unit, requiring us to perform an interim goodwill impairment test. The primary factor contributing to our conclusion was the expected impact of the COVID-19 pandemic to this particular business and its customers and revenue sources, which caused us to believe it was more likely than not that the carrying value of our Fine Arts reporting unit exceeded its fair value. During the first quarter of 2020, we performed an interim goodwill impairment test for our Fine Arts reporting unit utilizing a discounted cash flow model, with updated assumptions on future revenues, operating expenditures and capital expenditures. We concluded that the fair value of our Fine Arts reporting unit was less than its carrying value, and, therefore, we recorded a $23,000 impairment charge on the goodwill associated with this reporting unit during the first quarter of 2020. Factors that may impact these assumptions include, but are not limited to: (i) our ability to maintain, or grow, storage and retail service revenues in this reporting unit in line with current expectations and (ii) our ability to manage our fixed and variable costs in this reporting unit in line with potential future revenue declines. II. REPORTING UNITS AS OF OCTOBER 1, 2021 and 2020 Our reporting units at which level we performed our goodwill impairment analysis as of October 1, 2021 and 2020 were as follows: • North America Records and Information Management ("North • Asia Records and Information Management ("Asia RIM") America RIM") • Europe Records and Information Management ("Europe RIM") • Latin America Records and Information Management ("Latin America RIM") • Australia and New Zealand Records and Information Management ("ANZ RIM") • Global Data Center • Fine Arts • Entertainment Services We concluded that the goodwill associated with each of our reporting units was not impaired as of such date. There were no changes to the composition of our reporting units between October 1, 2021 and December 31, 2021 and between October 1, 2020 and December 31, 2020. GOODWILL BY REPORTING UNIT AS OF DECEMBER 31, 2021 and 2020 The carrying value of goodwill, net for each of our reporting units described above as of December 31, 2021 and 2020 is as follows: SEGMENT Global RIM (as defined in Note 11) Business Global Data Center Business Corporate and Other Business REPORTING UNIT North America RIM Europe RIM Latin America RIM ANZ RIM Asia RIM Global Data Center Fine Arts Entertainment Services Technology Escrow Services(1) CARRYING VALUE AS OF DECEMBER 31, 2021 2020 $ 2,720,049 $ 2,719,182 624,502 107,174 284,042 240,494 426,074 27,905 33,291 — 641,621 117,834 301,251 244,294 436,987 15,176 35,159 46,105 Total $ 4,463,531 $ 4,557,609 (1) The Technology Escrow Services reporting unit was divested in June 2021 (see Note 4). IRON MOUNTAIN 2021 FORM 10-K 83 Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Reporting unit valuations have generally been determined using a combined approach based on the present value of future cash flows (the “Discounted Cash Flow Model”) and market multiples (the “Market Approach”). The Discounted Cash Flow Model incorporates significant assumptions including future revenue growth rates, operating margins, discount rates and capital expenditures. The Market Approach requires us to make assumptions related to Adjusted EBITDA (as defined in Note 11) multiples. Changes in economic and operating conditions impacting these assumptions or changes in multiples could result in goodwill impairments in future periods. In conjunction with our annual goodwill impairment reviews, we reconcile the sum of the valuations of all of our reporting units to our market capitalization as of such dates. The changes in the carrying value of goodwill attributable to each reportable operating segment for the years ended December 31, 2021 and 2020 are as follows: GLOBAL RIM BUSINESS GLOBAL DATA CENTER BUSINESS CORPORATE AND OTHER BUSINESS TOTAL CONSOLIDATED $ 3,942,901 $ 424,568 $ 117,740 $ 4,485,209 Goodwill balance, net of accumulated amortization, as of December 31, 2019 Non-tax deductible goodwill acquired during the year Goodwill impairment Fair value and other adjustments Currency effects 54,258 — (3,815) 30,838 — — — 12,419 Goodwill balance, net of accumulated amortization, as of December 31, 2020 4,024,182 436,987 Non-tax deductible goodwill acquired during the year Goodwill allocated to IPM Divestment Fair value and other adjustments Currency effects 14,406 — (6,091) (56,236) — — — (10,913) — (23,000) 403 1,297 96,440 13,141 (46,105) (1,268) (1,012) 54,258 (23,000) (3,412) 44,554 4,557,609 27,547 (46,105) (7,359) (68,161) Goodwill balance, net of accumulated amortization, as of December 31, 2021 Accumulated Goodwill Impairment Balance as of December 31, 2020 Accumulated Goodwill Impairment Balance as of December 31, 2021 $ $ $ 3,976,261 $ 426,074 $ 61,196 $ 4,463,531 132,409 $ 132,409 $ — $ — $ 26,011 $ 26,011 $ 158,420 158,420 L. FINITE-LIVED INTANGIBLE ASSETS AND LIABILITIES I. CUSTOMER RELATIONSHIP INTANGIBLE ASSETS Customer relationship intangible assets, which are acquired through either business combinations or acquisitions of customer relationships, are amortized over periods ranging from 10 to 30 years. Customer relationship intangible assets are recorded based upon estimates of their fair value. II. CUSTOMER INDUCEMENTS Payments that are made to a customer’s current records management vendor in order to terminate the customer’s existing contract with that vendor (“Permanent Withdrawal Fees”), or direct payments to a customer for which no distinct benefit is received in return, are collectively referred to as "Customer Inducements". Customer Inducements are treated as a reduction of the transaction price over periods ranging from one to 10 years and are included in storage and service revenue in the accompanying Consolidated Statements of Operations. If the customer terminates its relationship with us, the unamortized carrying value of the Customer Inducement intangible asset is charged to revenue. However, in the event of such termination, we generally collect, and record as income, permanent removal fees that generally equal or exceed the amount of the unamortized Customer Inducement intangible asset. 84 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) III. DATA CENTER INTANGIBLE ASSETS AND LIABILITIES Finite-lived intangible assets associated with our Global Data Center Business consist of the following: DATA CENTER IN-PLACE LEASE INTANGIBLE ASSETS AND DATA CENTER TENANT RELATIONSHIP INTANGIBLE ASSETS Data Center In-Place Lease Intangible Assets (“Data Center In-Place Leases”) and Data Center Tenant Relationship Intangible Assets (“Data Center Tenant Relationships”) reflect the value associated with acquiring a data center operation with active tenants as of the date of acquisition. The value of Data Center In-Place Leases is determined based upon an estimate of the economic costs (such as lost revenues, tenant improvement costs, commissions, legal expenses and other costs to acquire new data center leases) avoided by acquiring a data center operation with active tenants that would have otherwise been incurred if the data center operation was purchased vacant. Data Center In-Place Leases are amortized over the weighted average remaining term of the acquired data center leases. The value of Data Center Tenant Relationships is determined based upon an estimate of the economic costs avoided upon lease renewal of the acquired tenants, based upon expectations of lease renewal. Data Center Tenant Relationships are amortized over the weighted average remaining anticipated life of the relationship with the acquired tenant. DATA CENTER ABOVE-MARKET AND BELOW-MARKET IN-PLACE LEASE INTANGIBLE ASSETS We record Data Center Above-Market In-Place Lease Intangible Assets (“Data Center Above-Market Leases”) and Data Center Below-Market In-Place Lease Intangible Assets (“Data Center Below-Market Leases”) at the net present value of the difference between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of the fair market lease rates for each corresponding in-place lease. Data Center Above-Market Leases and Data Center Below-Market Leases are amortized over the remaining non-cancellable term of the acquired in-place lease to storage revenue. The gross carrying amount and accumulated amortization of our finite-lived intangible assets as of December 31, 2021 and 2020, respectively, are as follows: DESCRIPTION Assets: DECEMBER 31, 2021 DECEMBER 31, 2020 GROSS CARRYING AMOUNT ACCUMULATED AMORTIZATION NET CARRYING AMOUNT GROSS CARRYING AMOUNT ACCUMULATED AMORTIZATION NET CARRYING AMOUNT Customer relationship intangible assets(1) Customer inducements(1) Data center lease-based intangible assets(1)(2) Third-party commissions asset(3) $ 1,835,949 $ (763,943) $ 1,072,006 $ 1,852,700 $ (668,547) $ 1,184,153 51,403 278,904 33,947 (28,400) (192,870) (13,716) 23,003 86,034 20,231 49,098 269,988 34,317 (26,923) 22,175 (149,339) 120,649 (8,761) 25,556 Liabilities: Data center below-market leases(4) $ 12,782 $ (6,923) $ 5,859 $ 12,854 $ (5,943) $ 6,911 (1) Included in Customer relationships, customer inducements and data center lease-based intangibles in the accompanying Consolidated Balance Sheets as of December 31, 2021 and 2020. (2) Data center lease-based intangible assets includes Data Center In-Place Leases, Data Center Tenant Relationships and Data Center Above-Market Leases. (3) (4) Included in Other (within Other Assets, Net) in the accompanying Consolidated Balance Sheets as of December 31, 2021 and 2020. Included in Other long-term liabilities in the accompanying Consolidated Balance Sheets as of December 31, 2021 and 2020. IRON MOUNTAIN 2021 FORM 10-K 85 Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Amortization expense associated with finite-lived intangible assets, revenue reduction associated with the amortization of Customer Inducements and net revenue reduction associated with the amortization of Data Center Above-Market Leases and Data Center Below-Market Leases for the years ended December 31, 2021, 2020 and 2019 is as follows: Amortization expense included in depreciation and amortization associated with: Customer relationship intangible assets Data center in-place leases and tenant relationships Third-party commissions asset and other finite-lived intangible assets Revenue reduction associated with amortization of: YEAR ENDED DECEMBER 31, 2021 2020 2019 $ 117,761 $ 117,514 $ 117,972 42,333 6,987 42,637 7,004 46,696 7,957 Customer inducements and data center above-market and below-market leases $ 8,852 $ 9,878 $ 13,703 Estimated amortization expense for existing finite-lived intangible assets (excluding Contract Fulfillment Costs, as defined and disclosed in Note 2.r.) is as follows: ESTIMATED AMORTIZATION YEAR 2022 2023 2024 2025 2026 Thereafter INCLUDED IN DEPRECIATION AND AMORTIZATION $ 134,107 $ 128,681 123,412 117,306 115,966 557,040 REVENUE REDUCTION ASSOCIATED WITH CUSTOMER INDUCEMENTS AND DATA CENTER ABOVE-MARKET AND BELOW-MARKET LEASES 6,367 4,628 2,599 1,506 1,187 2,616 M. DEFERRED FINANCING COSTS Deferred financing costs are amortized over the life of the related debt. If debt is retired early, the related unamortized deferred financing costs are written-off in the period the debt is retired to Other (income) expense, net. See Note 7. N. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Every derivative instrument is required to be recorded in the balance sheet as either an asset or a liability measured at its fair value. Periodically, we acquire derivative instruments that are intended to hedge either cash flows or values that are subject to foreign exchange or other market price risk and not for trading purposes. We have formally documented our hedging relationships, including identification of the hedging instruments and the hedged items, as well as our risk management objectives and strategies for undertaking each hedge transaction. Given the recurring nature of our revenues and the long-term nature of our asset base, we have the ability and the preference to use long-term, fixed interest rate debt to finance our business, thereby preserving our long- term returns on invested capital. We may use interest rate swaps as a tool to maintain our targeted level of fixed rate debt. In addition, we may enter into cross-currency swaps to hedge the variability of exchange rates between the United States and our foreign subsidiaries, as well as interest rates. We may also use borrowings in foreign currencies, either obtained in the United States or by our foreign subsidiaries, to hedge foreign currency risk associated with our international investments. As of December 31, 2021 and 2020, none of our derivative instruments contained credit-risk related contingent features. See Note 6. 86 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) O. FAIR VALUE MEASUREMENTS Entities are permitted under GAAP to elect to measure certain financial instruments and certain other items at either fair value or cost. We have elected the cost measurement option in all circumstances where we had an option. Our financial assets or liabilities that are carried at fair value are required to be measured using inputs from the three levels of the fair value hierarchy. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The three levels of the fair value hierarchy are as follows: Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date. Level 2—Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). Level 3—Unobservable inputs that reflect our assumptions about the assumptions that market participants would use in pricing the asset or liability. The assets and liabilities carried at fair value and measured on a recurring basis as of December 31, 2021 and 2020, respectively, are as follows: DESCRIPTION Money Market Funds(1) Time Deposits(1) Trading Securities Derivative Assets(4) Derivative Liabilities(4) DESCRIPTION Money Market Funds(1) Time Deposits(1) Trading Securities Derivative Liabilities(4) TOTAL CARRYING VALUE AT DECEMBER 31, 2021 QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2021 USING $ 101,022 $ — $ 101,022 $ 2,238 11,147 11,021 8,344 — 11,062 (2) — — 2,238 85 (3) 11,021 8,344 — — — — — TOTAL CARRYING VALUE AT DECEMBER 31, 2020 QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1) SIGNIFICANT OTHER OBSERVABLE INPUTS (LEVEL 2) SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2020 USING $ 62,657 $ — $ 62,657 $ 2,121 10,892 49,703 10,636 (2) — 2,121 256 (3) 49,703 — — — — (1) Money market funds and time deposits are measured based on quoted prices for similar assets and/or subsequent transactions. (2) Certain trading securities are measured at fair value using quoted market prices. (3) Certain trading securities are measured based on inputs other than quoted market prices that are observable. (4) Derivative assets and liabilities include (i) interest rate swap agreements, including forward-starting interest rate swap agreements, to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness and (ii) cross-currency swap agreements to hedge the variability of exchange rates impacts between the United States dollar and the Euro and certain of our Euro denominated subsidiaries. Our derivative financial instruments are measured using industry standard valuation models using market-based observable inputs, including interest rate curves, forward and spot prices for currencies and implied volatilities. Credit risk is also factored into the determination of the fair value of our derivative financial instruments. See Note 6 for additional information on our derivative financial instruments. IRON MOUNTAIN 2021 FORM 10-K 87 Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) We did not have any material items that are measured at fair value on a non-recurring basis for the years ended December 31, 2021, 2020, and 2019, with the exception of: (i) the reporting units as presented in our goodwill impairment analysis (as disclosed in Note 2.k.); (ii) those acquired in acquisitions (as disclosed in Note 3); (iii) the redemption value of certain redeemable noncontrolling interests (as disclosed in Note 2.p.); and (iv) our initial investments in the Web Werks JV, the Frankfurt JV and the MakeSpace JV (each as defined in Note 5), all of which are based on Level 3 inputs. The fair value of our long-term debt, which was determined based on either Level 1 inputs or Level 3 inputs, is disclosed in Note 7. Long-term debt is measured at cost in our Consolidated Balance Sheets as of December 31, 2021 and 2020. P. REDEEMABLE NONCONTROLLING INTERESTS Certain unaffiliated third parties own noncontrolling interests in certain of our foreign consolidated subsidiaries. The underlying agreements between us and our noncontrolling interest shareholders for these subsidiaries contain provisions under which the noncontrolling interest shareholders can require us to purchase their respective interests in such subsidiaries at certain times and at a purchase price as stipulated in the underlying agreements (generally at fair value). These put options make these noncontrolling interests redeemable and, therefore, these noncontrolling interests are classified as temporary equity outside of stockholders’ equity. Redeemable noncontrolling interests are reported at the higher of their redemption value or the noncontrolling interest holders’ proportionate share of the underlying subsidiaries net carrying value. Increases or decreases in the redemption value of the noncontrolling interest are offset against Additional Paid-in Capital. In 2018, one of our noncontrolling interest shareholders exercised its option to put its ownership interest back to us. Upon the exercise of the put option, this noncontrolling interest became mandatorily redeemable by us, and, therefore, was accounted for as a liability rather than a component of redeemable noncontrolling interests. In May 2021, we agreed to final settlement terms and paid the put option price for the noncontrolling interest shares. Q. ACCUMULATED OTHER COMPREHENSIVE ITEMS, NET The changes in accumulated other comprehensive items, net for the years ended December 31, 2021, 2020 and 2019 are as follows: Balance as of December 31, 2018 Other comprehensive income (loss): Foreign currency translation and other adjustments Change in fair value of derivative instruments Total other comprehensive income (loss) Balance as of December 31, 2019 Other comprehensive income (loss): Foreign currency translation and other adjustments Change in fair value of derivative instruments Total other comprehensive income (loss) Balance as of December 31, 2020 Other comprehensive (loss) income: Foreign currency translation and other adjustments Change in fair value of derivative instruments Total other comprehensive (loss) income Balance as of December 31, 2021 88 IRON MOUNTAIN 2021 FORM 10-K FOREIGN CURRENCY TRANSLATION AND OTHER ADJUSTMENTS CHANGE IN FAIR VALUE OF DERIVATIVE INSTRUMENTS TOTAL $ (264,691) $ (973) $ (265,664) 11,866 — 11,866 (252,825) 46,635 — 46,635 (206,190) (134,834) — (134,834) (341,024) $ — (8,783) (8,783) (9,756) — (39,947) (39,947) (49,703) — 52,380 52,380 11,866 (8,783) 3,083 (262,581) 46,635 (39,947) 6,688 (255,893) (134,834) 52,380 (82,454) 2,677 $ (338,347) $ Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) R. REVENUES Our revenues consist of storage rental revenues as well as service revenues and are reflected net of sales and value-added taxes. Storage rental revenues, which are considered a key driver of financial performance for the storage and information management services industry, consist primarily of recurring periodic rental charges related to the storage of materials or data (generally on a per unit basis) that are typically retained by customers for many years and revenues associated with our data center operations. Service revenues include charges for related service activities, the most significant of which include: (1) the handling of records, including the addition of new records, temporary removal of records from storage, refiling of removed records, customer termination and permanent removal fees, project revenues and courier operations, consisting primarily of the pickup and delivery of records upon customer request; (2) destruction services, consisting primarily of secure shredding of sensitive documents and the subsequent sale of shredded paper for recycling, the price of which can fluctuate from period to period; (3) digital solutions, including the scanning, imaging and document conversion services of active and inactive records, and consulting services; and (4) data center services, including set up, monitoring and support of our customers' assets which are protected in our data center facilities, and special project services, including data center fitout. We account for revenue in accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”). Customers are generally billed monthly based on contractually agreed-upon terms, and storage rental and service revenues are recognized in the month the respective storage rental or service is provided, in line with the transfer of control to the customer. When storage rental fees or services are billed in advance, amounts related to future storage rental or prepaid service contracts are accounted for as deferred revenue and recognized upon the transfer of control to the customer, generally ratably over the contract term. Customer contracts generally include promises to provide monthly recurring storage and related services that are essentially the same over time and have the same pattern of transfer of control to the customer; therefore, most performance obligations represent a promise to deliver a series of distinct services over time (as determined for purposes of ASC 606, a “series”). For those contracts that qualify as a series, we have a right to consideration from the customer in an amount that corresponds directly with the value of the underlying performance obligation transferred to the customer to date. This concept is known as "right to invoice” and we apply the “right to invoice” practical expedient to the majority of all revenues, with the exception of storage revenues in our Global Data Center Business (which are subject to leasing guidance). Additionally, each purchasing decision is fully in the control of the customer and; therefore, consideration beyond the current reporting period is variable and allocated to the specific period to which the consideration relates, which is consistent with the practical expedient. Our Global Data Center Business features storage rental provided to the customer at contractually specified rates over a fixed contractual period. Storage rental revenue related to the storage component of our Global Data Center Business is recognized on a straight-line basis over the contract term in accordance with ASC 842. The revenue related to the service component of our Global Data Center Business is recognized in the period the related services are provided. 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 (“Contract Fulfillment Costs”). The following describes our significant Contract Fulfillment Costs recognized under ASC 606: INTAKE COSTS (AND ASSOCIATED DEFERRED REVENUE) The costs of the initial intake of customer records into physical storage (“Intake Costs”) are deferred and amortized as a component of depreciation and amortization in our Consolidated Statements of Operations over three years, consistent with the transfer of the performance obligation to the customer to which the asset relates. In instances where such Intake Costs are billed to the customer, the associated revenue is deferred and recognized over the same three-year period. COMMISSIONS Certain commission payments that are directly associated with the fulfillment of long-term contracts are capitalized and amortized as a component of depreciation and amortization in our Consolidated Statements of Operations over three years, consistent with the transfer of the performance obligation to the customer to which the asset relates. Certain direct commission payments associated with contracts with a duration of one year or less are expensed as incurred under the practical expedient which allows an entity to expense as incurred an incremental cost of obtaining a contract if the amortization period of the asset that the entity otherwise would have recognized is one year or less. IRON MOUNTAIN 2021 FORM 10-K 89 Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Contract Fulfillment Costs, which are included as a component of Other within Other Assets, Net, as of December 31, 2021 and 2020 are as follows: DECEMBER 31, 2021 DECEMBER 31, 2020 DESCRIPTION GROSS CARRYING AMOUNT ACCUMULATED AMORTIZATION NET CARRYING AMOUNT GROSS CARRYING AMOUNT ACCUMULATED AMORTIZATION NET CARRYING AMOUNT Intake Costs asset $ 71,336 $ (42,678) $ 28,658 $ 63,721 $ (33,352) $ Commissions asset 114,791 (50,553) 64,238 91,069 (38,787) 30,369 52,282 Amortization expense associated with the Intake Costs and Commissions assets for the years ended December 31, 2021, 2020 and 2019 are as follows: DESCRIPTION Intake Costs asset Commissions asset Estimated amortization expense for Contract Fulfillment Costs is as follows: YEAR ENDED DECEMBER 31, 2021 2020 2019 $ 17,530 $ 13,300 $ 30,739 24,052 10,144 19,109 YEAR 2022 2023 2024 Deferred revenue liabilities are reflected as follows in our Consolidated Balance Sheets: DESCRIPTION Deferred revenue - Current Deferred revenue - Long-term LOCATION IN BALANCE SHEET Deferred revenue Other Long-term Liabilities ESTIMATED AMORTIZATION $ 47,393 30,083 15,420 DECEMBER 31, 2021 2020 $ 307,470 $ 295,785 33,691 35,612 DATA CENTER LESSOR CONSIDERATIONS Our Global Data Center Business features storage rental provided to customers at contractually specified rates over a fixed contractual period. Our data center revenue contracts are accounted for in accordance with ASC 842. ASC 842 provides a practical expedient which allows lessors to account for nonlease components (such as power and connectivity, in the case of our Global Data Center Business) with the related lease component if both the timing and pattern of transfer are the same for nonlease components and the lease component, and the lease component, if accounted for separately, would be classified as an operating lease. The single combined component is accounted for under ASC 842 if the lease component is the predominant component and is accounted for under ASC 606 if the nonlease components are the predominant components. We have elected to take this practical expedient. 90 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Storage rental revenue, including revenue associated with power and connectivity, associated with our Global Data Center Business for the years ended December 31, 2021, 2020 and 2019 are as follows: Storage rental revenue(1) YEAR ENDED DECEMBER 31, 2021 2020 2019 $ 289,592 $ 263,695 $ 246,925 (1) Revenue associated with power and connectivity included within storage rental revenue was $62,185, $47,451 and $43,269 for the years ended December 31, 2021, 2020 and 2019, respectively. The revenue related to the service component of our Global Data Center Business is recognized in the period the related services are provided. The future minimum lease payments we expect to receive under non-cancellable data center operating leases for which we are the lessor, excluding month to month leases, for the next five years are as follows: YEAR 2022 2023 2024 2025 2026 FUTURE MINIMUM LEASE PAYMENTS $ 266,109 218,324 179,169 126,269 98,440 S. STOCK-BASED COMPENSATION We record stock-based compensation expense, utilizing the straight-line method, for the cost of stock options, restricted stock units (“RSUs”), performance units (“PUs”) and shares of stock issued under our employee stock purchase plan (“ESPP”) (together, "Employee Stock-Based Awards”). For our Employee Stock-Based Awards made on or after February 20, 2019, we have included the following retirement provision: • Upon an employee’s retirement on or after attaining age 58, if the sum of (i) the award recipient’s age at retirement and (ii) the award recipient’s years of service with the company totals at least 70, the award recipient is entitled to continued vesting of any outstanding Employee Stock-Based Awards, provided that, for awards granted in the year of retirement, their retirement occurs on or after July 1 (the “Retirement Criteria”). • Accordingly, (i) grants of Employee Stock-Based Awards to an employee who has met the Retirement Criteria on or before the date of grant, or will meet the Retirement Criteria before July 1 of the year of the grant, will be expensed between the date of grant and July 1 of the grant year and (ii) grants of Employee Stock-Based Awards to employees who will meet the Retirement Criteria during the award’s normal vesting period will be expensed between the date of grant and the date upon which the award recipient meets the Retirement Criteria. • Stock options and RSUs granted to recipients who meet the Retirement Criteria will continue vesting on the original vesting schedule. If an employee retires and has met the Retirement Criteria, stock options generally will remain exercisable for up to three years or the original expiration date of the stock options, if earlier. PUs granted to recipients who meet the Retirement Criteria will continue to vest and be delivered in accordance with the original vesting schedule of the applicable PU award and remain subject to the same performance conditions. IRON MOUNTAIN 2021 FORM 10-K 91 Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Stock-based compensation expense for Employee Stock-Based Awards included in the accompanying Consolidated Statements of Operations for the years ended December 31, 2021, 2020 and 2019 is as follows: Stock-based compensation expense Stock-based compensation expense, after tax YEAR ENDED DECEMBER 31, 2021 2020 2019 $ 61,001 $ 37,674 $ 59,243 36,584 35,654 33,103 The substantial majority of stock-based compensation expense for Employee Stock-Based Awards is included in Selling, general and administrative expenses in the accompanying Consolidated Statements of Operations. STOCK OPTIONS Options are generally granted with exercise prices equal to the market price of the stock on the date of grant; however, in certain instances, options are granted at prices greater than the market price of the stock on the date of grant. The substantial majority of options we issue become exercisable ratably over a period three years from the date of grant and have a contractual life of 10 years from the date of grant, unless the holder’s employment is terminated sooner. Our non-employee directors are considered employees for purposes of our stock option plans and stock option reporting. Our stock options outstanding at December 31, 2021 are based on the three-year vesting period (10 year contractual life) described above. Our equity compensation plans generally provide that, upon a vesting change in control (as defined in each plan), any unvested options and other awards granted thereunder shall vest immediately if an employee is terminated as a result of the change in control or terminates their own employment for good reason (as defined in each plan). On January 20, 2015, our stockholders approved the adoption of the Iron Mountain Incorporated 2014 Stock and Cash Incentive Plan, as amended (the "2014 Plan”). In May 2021, our stockholders approved an amendment to the 2014 Plan to (i) increase the number of shares of our common stock authorized for issuance thereunder by 8,000,000 from 12,750,000 to 20,750,000, (ii) extend the termination date of the 2014 Plan from May 24, 2027 to May 12, 2031, (iii) provide that, other than in specified circumstances, no equity-based award will vest before the first anniversary of the date of grant and (iv) provide that dividends and dividend equivalents are not paid with respect to stock options or stock appreciation rights. A total of 20,750,000 shares of common stock have been reserved for grants of options and other rights under our various stock incentive plans, including the 2014 Plan. The number of shares available for grant under our various stock incentive plans, not including the ESPP, at December 31, 2021 was 9,055,756. The weighted average fair value of stock options granted in 2021, 2020 and 2019 was $3.23, $2.35 and $3.58 per share, respectively. These values were estimated on the date of grant using the Black-Scholes option pricing model. The weighted average assumptions used for grants in the years ended December 31, 2021, 2020 and 2019 are as follows: WEIGHTED AVERAGE ASSUMPTIONS Expected volatility(1) Risk-free interest rate(2) Expected dividend yield(3) Expected life(4) YEAR ENDED DECEMBER 31, 2021 2020 2019 28.3 % 1.45 % 7 % 25.4 % 1.45 % 7 % 24.3 % 2.47 % 7 % 10.0 years 10.0 years 5.0 years (1) Expected volatility is calculated utilizing daily historical volatility over a period that equates to the expected life of the option. (2) Risk-free interest rate is based on the United States Treasury interest rates whose term is consistent with the expected life (estimated period of time outstanding) of the stock options. (3) Expected dividend yield is considered in the option pricing model and represents our current annualized expected per share dividends over the current trade price of our common stock. (4) Expected life of the stock options granted is estimated using the historical exercise behavior of employees. 92 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A summary of stock option activity for the year ended December 31, 2021 is as follows: WEIGHTED AVERAGE EXERCISE PRICE WEIGHTED AVERAGE REMAINING CONTRACTUAL TERM (YEARS) AGGREGATE INTRINSIC VALUE OPTIONS Outstanding at December 31, 2020 Granted Exercised Forfeited Expired Outstanding at December 31, 2021 Options exercisable at December 31, 2021 Options expected to vest 4,732,519 $ 429,618 (869,855) (16,304) (51,905) 4,224,073 $ 3,168,908 $ 1,054,641 $ 35.83 34.73 34.26 35.37 34.27 36.06 36.60 34.42 5.75 4.90 8.34 $ $ $ 68,747 49,850 18,888 RESTRICTED STOCK UNITS Our RSUs generally have a vesting period of three years from the date of grant. However, RSUs granted to our non-employee directors vest immediately upon grant. All RSUs accrue dividend equivalents associated with the underlying stock as we declare dividends. Dividends will generally be paid to holders of RSUs in cash upon the vesting date of the associated RSU and will be forfeited if the RSU does not vest. The fair value of RSUs is the excess of the market price of our common stock at the date of grant over the holder's purchase price (which is typically zero). The fair value of RSUs vested during the years ended December 31, 2021, 2020 and 2019, are as follows: Fair value of RSUs vested $ 29,332 $ 26,492 $ 21,191 A summary of RSU activity for the year ended December 31, 2021 is as follows: YEAR ENDED DECEMBER 31, 2021 2020 2019 Non-vested at December 31, 2020 Granted Vested Forfeited Non-vested at December 31, 2021 RSUs WEIGHTED-AVERAGE GRANT-DATE FAIR VALUE 1,294,006 $ 1,178,170 (862,377) (206,166) 1,403,633 $ 33.02 34.98 34.01 32.65 34.11 PERFORMANCE UNITS The PUs we issue vest based on our performance against predefined operational and share based targets. For awards granted in 2019 and thereafter, the vesting is subject to a minimum level of return on invested capital (“ROIC”) in the third year of the performance period, and thereafter the number of PUs earned is based on (i) the revenue performance for each year averaged at the end of the three-year performance period, (ii) the revenue exit rate of new products in the last quarter of the three-year performance period and (iii) a relative TSR target. With respect to the PUs granted in 2019 and thereafter, the number of PUs earned may range from 0% to approximately 238% of the initial award. IRON MOUNTAIN 2021 FORM 10-K 93 Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) All of our PUs will be settled in shares of our common stock and are subject to cliff vesting three years from the date of the original PU grant. As detailed above, PUs granted are subject to the Retirement Criteria. PUs granted to recipients who meet the Retirement Criteria will continue to vest and be delivered in accordance with the original vesting schedule of the applicable PU award and remain subject to the same performance conditions. As a result, PUs are generally expensed over the three-year performance period. All PUs accrue dividend equivalents associated with the underlying stock as we declare dividends. Dividends will generally be paid to holders of PUs in cash upon the settlement date of the associated PU and will be forfeited if the PU does not vest. During the years ended December 31, 2021, 2020 and 2019, we issued 488,953, 425,777 and 380,856 PUs, respectively. We forecast the likelihood of achieving the predefined targets for our PUs in order to calculate the expected PUs to be earned. We record a compensation charge based on either the forecasted PUs to be earned (during the performance period) or the actual PUs earned (at the three-year anniversary of the grant date) over the vesting period for each of the awards. The fair value of PUs based on our performance against predefined targets is the excess of the market price of our common stock at the date of grant over the purchase price (which is typically zero). For PUs earned based on a market condition, we utilize a Monte Carlo simulation to fair value these awards at the date of grant, and such fair value is expensed over the three-year performance period. The fair value of earned PUs that vested during the years ended December 31, 2021, 2020 and 2019, is as follows: YEAR ENDED DECEMBER 31, 2021 2020 2019 Fair value of earned PUs that vested $ 29,701 $ 11,812 $ 6,503 A summary of PU activity for the year ended December 31, 2021 is as follows: ORIGINAL PU AWARDS PU ADJUSTMENT(1) TOTAL PU AWARDS WEIGHTED-AVERAGE GRANT-DATE FAIR VALUE Non-vested at December 31, 2020 1,073,209 (319,508) 753,701 $ Granted Vested Forfeited/Performance or Market Conditions Not Achieved Non-vested at December 31, 2021 488,953 (630,151) (58,776) 873,235 — — (221,936) (541,444) 488,953 (630,151) (280,712) 331,791 $ 36.98 54.61 47.13 35.84 44.65 (1) Represents an increase or decrease in the number of original PUs awarded based on either the final performance criteria or market condition achievement at the end of the performance period of such PUs or a change in estimated awards based on the forecasted performance against the predefined targets. 94 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) EMPLOYEE STOCK PURCHASE PLAN We offer an ESPP in which participation is available to substantially all United States and Canadian employees who meet certain service eligibility requirements. The ESPP provides for the purchase of our common stock by eligible employees through successive offering periods. We have historically had two six-month offering periods per year, the first of which generally runs from June 1 through November 30 and the second of which generally runs from December 1 through May 31. During each offering period, participating employees accumulate after-tax payroll contributions, up to a maximum of 15% of their compensation, to pay the purchase price at the end of the offering. Participating employees may withdraw from an offering before the purchase date and obtain a refund of the amounts withheld as payroll deductions. At the end of the offering period, outstanding options under the ESPP are exercised, and each employee’s accumulated contributions are used to purchase our common stock. The price for shares purchased under the ESPP is 95% of the fair market price at the end of the offering period, without a look-back feature. As a result, we do not recognize compensation expense for the ESPP shares purchased. In May 2021, our stockholders approved an amendment to the ESPP to increase the number of shares of Common Stock authorized for issuance thereunder by 1,000,000 from 1,000,000 to 2,000,000. For the years ended December 31, 2021, 2020 and 2019, there were 112,297, 159,853 and 129,505 shares, respectively, purchased under the ESPP. As of December 31, 2021, we have 1,103,990 shares available under the ESPP. ________________________________________________________ As of December 31, 2021, unrecognized compensation cost related to the unvested portion of our Employee Stock-Based Awards was $42,559 and is expected to be recognized over a weighted-average period of 1.9 years. We issue shares of our common stock for the exercises of stock options, and the vesting of RSUs, PUs and shares of our common stock under our ESPP from unissued reserved shares. T. 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, facility upgrade and system integration costs (collectively, "Acquisition and Integration Costs"). Acquisition and Integration Costs do not include costs associated with the formation of joint ventures or costs associated with the acquisition of customer relationships. Acquisition and integration costs for the year ended December 31, 2021, 2020 and 2019 were $12,764, $0 and $13,293, respectively. U. OTHER (INCOME) EXPENSE, NET Consolidated other (income) expense, net for the years ended December 31, 2021, 2020 and 2019 consists of the following: Foreign currency transaction (gains) losses, net(1) Debt extinguishment expense Other, net(2) Other (Income) Expense, Net YEAR ENDED DECEMBER 31, 2021 2020 2019 $ (15,753) $ 29,830 $ 24,852 — (177,051) 68,300 45,415 $ (192,804) $ 143,545 $ — 9,046 33,898 (1) The gain or loss on foreign currency transactions, calculated as the difference between the historical exchange rate and the exchange rate at the applicable measurement date, includes gains or losses primarily related to (i) borrowings in certain foreign currencies under our Revolving Credit Facility (as defined in Note 7), (ii) our previously outstanding 3% Euro Senior Notes due 2025 ("Euro Notes"), (iii) certain foreign currency denominated intercompany obligations of our foreign subsidiaries to us and between our foreign subsidiaries, which are not considered permanently invested and (iv) amounts that are paid or received on the net settlement amount from forward contracts (as more fully discussed in Note 6). (2) Other, net for the year ended December 31, 2021 consists primarily of (a) a gain of approximately $179,000 associated with our IPM Divestment and (b) a gain of approximately $20,300 associated with the loss of control and related deconsolidation, as of May 18, 2021, of one of our wholly owned Netherlands subsidiaries, for which we had value-added tax liability exposure that was recorded in 2019, partially offset by (c) losses on our equity method investments. Other, net for the year ended December 31, 2020 consists primarily of (a) changes in the estimated value of our mandatorily redeemable noncontrolling interests and (b) losses on our equity method investments. IRON MOUNTAIN 2021 FORM 10-K 95 Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) V. INCOME TAXES Accounting for income taxes requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the tax and financial reporting bases of assets and liabilities and for loss and credit carryforwards. Valuation allowances are provided when recovery of deferred tax assets does not meet the more likely than not standard as defined in GAAP. We have elected to recognize interest and penalties associated with uncertain tax positions as a component of the Provision (benefit) for income taxes in the accompanying Consolidated Statements of Operations. W. INCOME (LOSS) PER SHARE—BASIC AND DILUTED Basic income (loss) per common share is calculated by dividing income (loss) by the weighted average number of common shares outstanding. The calculation of diluted income (loss) per share is consistent with that of basic income (loss) per share but gives effect to all potential common shares (that is, securities such as stock options, RSUs, PUs, warrants or convertible securities) that were outstanding during the period, unless the effect is antidilutive. The calculation of basic and diluted income (loss) per share for the years ended December 31, 2021, 2020 and 2019 is as follows: Income (loss) from continuing operations $ 452,725 $ 343,096 $ 268,211 Less: Net income (loss) attributable to noncontrolling interests Income (loss) from continuing operations (utilized in numerator of Earnings Per Share calculation) Income (loss) from discontinued operations, net of tax 2,506 450,219 — 403 938 342,693 — 267,273 104 Net income (loss) attributable to Iron Mountain Incorporated $ 450,219 $ 342,693 $ 267,377 YEAR ENDED DECEMBER 31, 2021 2020 2019 Weighted-average shares—basic Effect of dilutive potential stock options Effect of dilutive potential RSUs and PUs Weighted-average shares—diluted Earnings (losses) per share—basic: Income (loss) from continuing operations (Loss) income from discontinued operations, net of tax Net income (loss) attributable to Iron Mountain Incorporated(1) Earnings (losses) per share—diluted: Income (loss) from continuing operations (Loss) income from discontinued operations, net of tax Net income (loss) attributable to Iron Mountain Incorporated(1) 289,457,000 288,183,000 286,971,000 645,886 872,204 24,903 435,287 145,509 570,435 290,975,090 288,643,190 287,686,944 $ $ $ $ 1.56 $ — 1.56 $ 1.55 $ — 1.55 $ 1.19 $ — 1.19 $ 1.19 $ — 1.19 $ 0.93 — 0.93 0.93 — 0.93 Antidilutive stock options, RSUs and PUs, excluded from the calculation 1,447,722 5,663,981 4,475,745 (1) Columns may not foot due to rounding. 96 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) X. NEW ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In December 2019, the Financial Accounting Standards Board (the "FASB") issued ASU No. 2019-12, Income Taxes (Topic 740) (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions for recognizing deferred taxes for investments, performing intra-period allocation and calculating income taxes in interim periods. ASU 2019-12 also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. We adopted ASU 2019-12 on January 1, 2021. ASU 2019-12 did not have a material impact on our consolidated financial statements. OTHER AS YET ADOPTED ACCOUNTING PRONOUNCEMENTS In December 2021, the FASB issued 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 ASU 2014-09 and for the related revenue contracts in accordance with ASU 2014-09 as if it had originated the contracts. ASU 2021-08 will be effective for us on January 1, 2023, with early adoption permitted. We are currently evaluating the impact ASU 2021-08 will have on our consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions for applying U.S.GAAP to contracts, hedging relationships, and other transactions, for a limited period of time, to ease the potential burden of recognizing the effects of reference rate reform on financial reporting. The amendments in ASU 2020-04 apply to contracts, hedging relationships and other transactions that reference the London Inter-Bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to the global transition away from LIBOR and certain other interbank offered rates. An entity may elect to apply the amendments provided by ASU 2020-04 beginning March 12, 2020 through December 31, 2022. We are currently evaluating these amendments as they relate to our contracts, hedging relationships and other transactions that reference LIBOR, as well as the impact of ASU 2020-04 on our consolidated financial statements but do not expect the impact to be material. 3. ACQUISITIONS We account for acquisitions using the acquisition method of accounting, and, accordingly, the assets and liabilities acquired are recorded at their estimated fair values and the results of operations for each acquisition have been included in our consolidated results from their respective acquisition dates. A. ACQUISITIONS COMPLETED DURING THE YEAR ENDED DECEMBER 31, 2021 On September 15, 2021, in order to further expand our records management operations in the Middle East and North Africa, we acquired Information Fort, LLC, a records and information management provider, for approximately $90,300. On September 23, 2021, in order to further enhance our data center operations in Germany, we completed the acquisition of assets of a Frankfurt data center for approximately 77,900 Euros (or approximately $91,300, based upon the exchange rate between the Euro and the United States dollar on the closing date of this acquisition). In addition to the transactions noted above, during the year ended December 31, 2021, in order to enhance our existing operations in the United Kingdom and Indonesia and to expand our operations into Morocco, we completed the acquisition of two records management companies and one art storage company for total cash consideration of approximately $45,100. IRON MOUNTAIN 2021 FORM 10-K 97 Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 3. ACQUISITIONS (CONTINUED) B. ACQUISITIONS COMPLETED DURING THE YEAR ENDED DECEMBER 31, 2020 Prior to January 9, 2020, we owned a 25% equity interest in OSG Records Management (Europe) Limited ("OSG"). On January 9, 2020, we acquired the remaining 75% equity interest in OSG for cash consideration of approximately $95,500 (the "OSG Acquisition"). The OSG Acquisition enabled us to extend our Global RIM Business in Russia, Ukraine, Kazakhstan, Belarus, and Armenia. The results of OSG are fully consolidated within our consolidated financial statements from the closing date of the OSG Acquisition. In connection with the OSG Acquisition, our previously held 25% equity investment in OSG was remeasured to fair value at the closing date of the OSG Acquisition; as a result, we recorded a gain of approximately $10,000 during the first quarter of 2020, which is included as a component of Other (income) expense, net on our Consolidated Statements of Operations. The fair value of the 25% equity investment in OSG was determined based on the purchase price of the OSG Acquisition. On February 17, 2020, in order to enhance our existing operations in the United Arab Emirates, we acquired Glenbeigh Records Management DWC-LLC, a storage and records management company, for total cash consideration of approximately $29,100. C. ACQUISITIONS COMPLETED DURING THE YEAR ENDED DECEMBER 31, 2019 During the year ended December 31, 2019, in order to enhance our existing operations in the United States, Colombia, Germany, Hong Kong, Latvia, Slovakia, Switzerland, Thailand and the United Kingdom and to expand our operations into Bulgaria, we completed the acquisition of 10 storage and records management companies and one art storage company for total cash consideration of approximately $51,000. The individual purchase prices of these acquisitions ranged from approximately $700 to $12,500. 98 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 3. ACQUISITIONS (CONTINUED) D. PURCHASE PRICE ALLOCATION A summary of the cumulative consideration paid and the allocation of the purchase price paid for all of our acquisitions (including asset acquisitions) in each respective year is as follows: Cash Paid (gross of cash acquired)(1) Fair Value of Noncontrolling Interests Purchase Price Holdbacks and Other Fair Value of Investments Applied to Acquisitions Total Consideration Fair Value of Identifiable Assets Acquired: Cash Accounts Receivable, Prepaid Expenses and Other Assets Property, Plant and Equipment Customer Relationship Intangible Assets(2) Operating Lease Right-of-Use Assets Data Center In-Place Leases(3) Data Center Tenant Relationships(4) Debt Assumed Accounts Payable, Accrued Expenses and Other Liabilities Operating Lease Liabilities Deferred Income Taxes Data Center Below-Market Leases(5) Total Fair Value of Identifiable Net Assets Acquired 2021 2020 2019 $ 224,192 $ 124,614 $ 3,878 2,534 — 230,604 20,194 26,911 150,095 35,181 40,848 4,994 4,682 (9,026) (22,733) (40,848) (7,221) (20) 203,057 — — 27,276 151,890 6,545 16,559 52,021 79,065 100,040 — — (27,363) (19,564) (100,040) (9,631) — 97,632 Goodwill Initially Recorded $ 27,547 $ 54,258 $ 53,230 — 4,135 — 57,365 2,260 3,102 5,396 22,071 16,956 — — — (3,233) (16,956) (1,813) — 27,783 29,582 (1) Cash paid for acquisitions, net of cash acquired in our Consolidated Statement of Cash Flows includes contingent and other payments of $0, $512 and $7,267 for the years ended December 31, 2021, 2020 and 2019, respectively, related to acquisitions made in the years prior to 2021, 2020 and 2019, respectively. (2) The weighted average lives of Customer Relationship Intangible Assets associated with acquisitions in 2021, 2020 and 2019 was 11 years, 14 years and 16 years, respectively. (3) The weighted average lives of Data Center In-Place Leases associated with acquisitions in 2021 was five years. (4) The weighted average lives of Data Center Tenant Relationships associated with acquisitions in 2021 was five years. (5) The weighted average lives of Data Center Below-Market Leases associated with acquisitions in 2021 was four years. Allocations of the purchase price for acquisitions are based on estimates of the fair value of the net assets acquired and are subject to adjustment upon the finalization of the purchase price allocations. The accounting for business combinations requires estimates and judgments regarding expectations for future cash flows of the acquired business, and the allocations of those cash flows to identifiable tangible and intangible assets, in determining the assets acquired and liabilities assumed. The fair values assigned to tangible and intangible assets acquired and liabilities assumed, including contingent consideration, are based on management’s best estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. The estimates and assumptions underlying the initial valuations are subject to the collection of information necessary to complete the valuations within the measurement periods, which are up to one year from the respective acquisition dates. The preliminary purchase price allocations that are not finalized as of December 31, 2021 relate to the final assessment of the fair values of intangible assets (primarily customer relationship intangible assets) and property, plant and equipment associated with the acquisitions we closed in 2021. IRON MOUNTAIN 2021 FORM 10-K 99 Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 3. ACQUISITIONS (CONTINUED) As the valuation of certain assets and liabilities for purposes of purchase price allocations are preliminary in nature, they are subject to adjustment as additional information is obtained about the facts and circumstances regarding these assets and liabilities that existed at the acquisition date. Any adjustments to our estimates of purchase price allocation will be made in the periods in which the adjustments are determined and the cumulative effect of such adjustments will be calculated as if the adjustments had been completed as of the acquisition dates. Adjustments recorded during the fourth quarter of 2021 and year ended December 31, 2021 were not material to our balance sheet or results from operations. 4. DIVESTMENTS INTELLECTUAL PROPERTY MANAGEMENT BUSINESS On June 7, 2021, we sold our Intellectual Property Management ("IPM") business, also known as our technology escrow services business, which we predominantly operated in the United States, for total gross consideration of approximately $215,400 (the “IPM Divestment”). As a result of the IPM Divestment, we recorded a gain on sale of approximately $179,000 to Other (income) expense, net, during the year ended December 31, 2021, the substantial majority of which was recorded during the second quarter of 2021, representing the excess of the fair value of the consideration received over the sum of the carrying value of the IPM business. We have concluded that the IPM Divestment does not meet the criteria to be reported as discontinued operations in our consolidated financial statements, as our decision to divest this business does not represent a strategic shift that will have a major effect on our operations and financial results. Accordingly, the revenues and expenses associated with this business are presented as a component of operating income (loss) in our Consolidated Statements of Operations for the year ended December 31, 2021 through the closing date of the IPM Divestment and for the years ended December 31, 2020 and 2019 and the cash flows associated with this business is presented as a component of cash flows from operations in our Consolidated Statements of Cash Flows for the year ended December 31, 2021 through the closing date of the IPM Divestment and for the years ended December 31, 2020 and 2019. IRON MOUNTAIN CONSUMER STORAGE In March 2019, we contributed our customer contracts and certain intellectual property and other assets used by us to operate our consumer storage business in the United States and Canada (the “IM Consumer Storage Assets”) and approximately $20,000 in cash (gross of certain transaction expenses) (the “Cash Contribution”) to a strategic partnership (the “MakeSpace JV”) established by us and MakeSpace Labs, Inc. (“MakeSpace”) pursuant to a transaction which closed on March 19, 2019 (the "Consumer Storage Transaction"). Upon the closing of the Consumer Storage Transaction, the MakeSpace JV owned (i) the IM Consumer Storage Assets, (ii) the Cash Contribution and (iii) the customer contracts, intellectual property and certain other assets used by MakeSpace to operate its consumer storage business in the United States. As part of the Consumer Storage Transaction, we received an initial equity interest of approximately 34% in the MakeSpace JV (the "MakeSpace Investment"). In connection with the Consumer Storage Transaction and the investment in the MakeSpace JV, we also entered into a storage and service agreement with the MakeSpace JV to provide certain storage and related services to the MakeSpace JV (see Note 12). We have concluded that the divestment of the IM Consumer Storage Assets in the Consumer Storage Transaction does not meet the criteria to be reported as discontinued operations in our consolidated financial statements, as our decision to divest this business does not represent a strategic shift that will have a major effect on our operations and financial results. Accordingly, the revenues and expenses associated with this business are presented as a component of Income (loss) from continuing operations in our Consolidated Statements of Operations for the year ended December 31, 2019 through the closing date of the Consumer Storage Transaction and the cash flows associated with this business are presented as a component of cash flows from continuing operations in our Consolidated Statements of Cash Flows for the year ended December 31, 2019 through the closing date of the Consumer Storage Transaction. As a result of the Consumer Storage Transaction, we recorded a gain on sale of approximately $4,200 to Other (income) expense, net, in the first quarter of 2019, representing the excess of the fair value of the consideration received over the sum of (i) the carrying value of our consumer storage operations and (ii) the Cash Contribution. 100 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 5. INVESTMENTS WEB WERKS JOINT VENTURE 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. In connection with the formation of the Web Werks JV, we made an initial investment of approximately 3,750,000 Indian rupees (or approximately $50,100, based upon the exchange rate between the United States dollar and Indian rupee as of the closing date of the initial investment) in exchange for a noncontrolling interest in the form of convertible preference shares in the Web Werks JV (the “Initial Web Werks JV Investment”). These shares are convertible into a to-be-determined amount of common shares based upon the achievement of EBITDA targets for the Web Werks JV's fiscal year ending March 31, 2022. Under the terms of the Web Werks JV shareholder agreement, we are required to make additional investments over a period ending May 2023 totaling approximately 7,500,000 Indian rupees (or approximately $100,000, based upon the exchange rate as of December 31, 2021 between the United States dollar and Indian rupee). FRANKFURT JOINT VENTURE In October 2020, we formed a joint venture (the “Frankfurt JV”) with AGC Equity Partners (“AGC”) to design and develop a 280,000 square foot, 27 megawatt, hyperscale data center currently under development in Frankfurt, Germany (the “Frankfurt JV Transaction”). AGC acquired an 80% equity interest in the Frankfurt JV, while we retained a 20% equity interest (the "Frankfurt JV Investment"). The total cash consideration for the 80% equity interest sold to AGC was approximately $105,000. We received approximately $93,300 (gross of certain transaction expenses) upon the closing of the Frankfurt JV, and we are entitled to receive an additional approximately $11,700 upon the completion of development of the data center, which we expect to occur in the third quarter of 2022. In connection with the Frankfurt JV Transaction, we also entered into agreements whereby we will earn various fees, including property management and construction and development fees, for services we are providing to the Frankfurt JV. As a result of the Frankfurt JV Transaction, we recognized a gain during the year ended December 31, 2020 of approximately $24,100, representing the excess of the fair value of the consideration received over the carrying value of the assets, which consisted primarily of land and land development assets which were previously included within our Global Data Center Business segment. MAKESPACE JOINT VENTURE In March 2019, we formed the MakeSpace JV. In the second quarter of 2020, we committed to participate in a round of equity funding for the MakeSpace JV whereby we contributed approximately $36,000 of the $45,000 being raised in installments between May 2020 through October 2021. JOINT VENTURE SUMMARY The joint ventures, referred to above, are accounted for as equity method investments and are presented as a component of Other within Other assets, net in our Consolidated Balance Sheets. The carrying values and equity interests in our joint ventures at December 31, 2021 and 2020 are as follows: Web Werks JV Frankfurt JV MakeSpace JV DECEMBER 31, 2021 DECEMBER 31, 2020 CARRYING VALUE EQUITY INTEREST CARRYING VALUE EQUITY INTEREST $ 51,140 26,167 30,154 38.50 % $ 20.00 % 49.99 % — 26,500 16,924 — % 20.00 % 38.86 % IRON MOUNTAIN 2021 FORM 10-K 101 Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 6. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Derivative instruments we are party to include: (i) interest rate swap agreements (which are designated as cash flow hedges), (ii) cross-currency swap agreements (which are designated as net investment hedges) and (iii) foreign exchange currency forward contracts (which are not designated as hedges). INTEREST RATE SWAP AGREEMENTS DESIGNATED AS CASH FLOW HEDGES In March 2018, we entered into interest rate swap agreements to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness. As of December 31, 2021 and 2020, we had $350,000 in notional value of interest rate swap agreements outstanding, which expire in March 2022. Under the interest rate swap agreements, we receive variable rate interest payments associated with the notional amount of each interest rate swap, based upon one-month LIBOR, in exchange for the payment of fixed interest rates as specified in the interest rate swap agreements. 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 once our current interest rate swap agreements expire in March 2022. The forward-starting interest rate swap agreements have $350,000 in notional value, commence in March 2022 and expire in March 2024. Under the swap agreements, we will receive variable rate interest payments based upon one-month LIBOR, in exchange for the payment of fixed interest rates as specified in the interest rate swap agreements. We have designated these interest rate swap agreements, including the forward-starting interest rate swap agreements, as cash flow hedges. Unrealized gains are recognized as assets, while unrealized losses are recognized as liabilities. CROSS-CURRENCY SWAP AGREEMENTS DESIGNATED AS A HEDGE OF NET INVESTMENT In August 2019, we entered into cross-currency swap agreements to hedge the variability of exchange rate impacts between the United States dollar and the Euro. Under the terms of the cross-currency swap agreements we notionally exchanged approximately $110,000 at an interest rate of 6.0% for approximately 99,055 Euros at a weighted average interest rate of approximately 3.65%. These cross-currency swap agreements expire in August 2023 (“August 2023 Cross Currency Swap Agreements”). In September 2020, we entered into cross-currency swap agreements to hedge the variability of exchange rates impacts between the United States dollar and the Euro. Under the terms of the cross-currency swap agreements, we notionally exchanged approximately $359,200 at an interest rate of 4.5% for approximately 300,000 Euros at a weighted average interest rate of approximately 3.4%. These cross-currency swap agreements expire in February 2026 (“February 2026 Cross Currency Swap Agreements”). We have designated these cross-currency swap agreements as hedge of net investments against 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 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. FOREIGN EXCHANGE CURRENCY FORWARD CONTRACTS NOT DESIGNATED AS HEDGING INSTRUMENTS On occasion, we enter into forward contracts to hedge our exposures associated with certain foreign currencies. We have not designated any of these forward contracts as hedges. Our policy is to record the fair value of each derivative instrument on a gross basis. As of December 31, 2021 and 2020, we had no outstanding forward contracts. 102 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 6. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (CONTINUED) (Liabilities) assets recognized in our Consolidated Balance Sheets as of December 31, 2021 and 2020 by derivative instrument are as follows: DERIVATIVE INSTRUMENT(1) Cash Flow Hedges(2) Interest Rate Swap Agreements Net Investment Hedges(3) August 2023 Cross Currency Swap Agreements February 2026 Cross Currency Swap Agreements DECEMBER 31, 2021 DECEMBER 31, 2020 $ (7,680) $ (21,062) (664) 11,021 (8,229) (20,412) (1) Our derivative assets are included as a component of 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 Consolidated Balance Sheets. As of December 31, 2021, $11,021 is included within Other assets, $2,082 is included within Accrued expense and other current liabilities and $6,262 is included within Other long-term liabilities. As of December 31, 2020, $49,703 is included within Other long-term liabilities. (2) As of December 31, 2021, cumulative net losses of $7,680 are recorded within Accumulated other comprehensive items, net associated with these interest rate swap agreements. (3) As of December 31, 2021, cumulative net gains of $10,357 are recorded within Accumulated other comprehensive items, net associated with these cross currency swap agreements. Gains (losses) recognized during the years ending December 31, 2021, 2020 and 2019, by derivative instrument, are as follows: DERIVATIVE INSTRUMENT Derivative Instruments Designated as Hedging Instruments(1) Cash Flow Hedges Interest Rate Swap Agreements Net Investment Hedges August 2023 Cross Currency Swap Agreements February 2026 Cross Currency Swap Agreements Derivative Instruments Not Designated as Hedging Instruments(2) Foreign Exchange Currency Forward Contracts YEAR ENDED DECEMBER 31, 2021 2020 2019 $ 13,382 $ (12,288) $ (7,801) 7,565 31,433 (7,247) (20,412) (982) — — — (737) (1) These amounts are recognized as unrealized gains (losses), a component of Accumulated other comprehensive items, net. (2) These amounts are recognized as foreign exchange gains (losses), a component of Other (income) expense, net. Net cash receipts (payments) included in cash from operating activities related to settlements associated with foreign currency forward contracts for the years ended December 31, 2021, 2020 and 2019 are $0, $0 and $(737), respectively. EURO NOTES DESIGNATED AS A HEDGE OF NET INVESTMENT Prior to their redemption in August 2020, we designated a portion of our Euro Notes as a hedge of net investment of certain of our Euro denominated subsidiaries. From January 1, 2020 through the date of redemption and for the year ended December 31, 2019 we designated, on average, 300,000 and 284,986 Euros, respectively, of our Euro Notes as a hedge of net investment of certain of our Euro denominated subsidiaries. As a result, we recorded the following foreign exchange gains (losses) related to the change in fair value of such debt due to currency translation adjustments as a component of Accumulated other comprehensive items, net: Foreign exchange gains (losses) associated with net investment hedge $ — $ (17,005) $ (6,003) As of December 31, 2021, cumulative net gains of $3,256, net of tax, are recorded in Accumulated other comprehensive items, net associated with this net investment hedge. IRON MOUNTAIN 2021 FORM 10-K 103 YEAR ENDED DECEMBER 31, 2021 2020 2019 Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 7. DEBT Long-term debt is as follows: DECEMBER 31, 2021 DECEMBER 31, 2020 DEBT (INCLUSIVE OF DISCOUNT) UNAMORTIZED DEFERRED FINANCING COSTS CARRYING AMOUNT FAIR VALUE DEBT (INCLUSIVE OF DISCOUNT) UNAMORTIZED DEFERRED FINANCING COSTS CARRYING AMOUNT FAIR VALUE $ — $ (5,174) $ (5,174) $ — $ — $ (8,620) $ (8,620) $ — 203,125 672,847 223,182 189,168 — 203,125 203,125 (4,995) 667,852 675,500 215,625 679,621 — 215,625 215,625 (6,244) 673,377 680,750 (656) 222,526 223,530 243,152 (1,624) 241,528 244,014 (709) 188,459 189,168 191,101 (1,307) 189,794 191,101 540,481 (3,912) 536,569 542,508 546,003 (4,983) 541,020 553,101 1,000,000 (8,176) 991,824 1,030,000 1,000,000 (9,598) 990,402 1,046,250 825,000 (7,380) 817,620 862,125 825,000 (8,561) 816,439 868,313 500,000 (4,763) 495,237 513,750 500,000 (5,486) 494,514 523,125 1,000,000 (11,211) 988,789 1,022,500 1,000,000 (12,658) 987,342 1,050,000 1,300,000 (12,911) 1,287,089 1,355,250 1,300,000 (14,416) 1,285,584 1,400,750 1,100,000 (11,404) 1,088,596 1,094,500 1,100,000 (12,648) 1,087,352 1,138,500 750,000 (13,782) 736,218 767,813 — — — — 600,000 (6,147) 593,853 637,500 600,000 (6,727) 593,273 660,000 460,648 (840) 459,808 460,648 511,922 (1,086) 510,836 511,922 — (450) (450) — 9,364,451 (310,084) (92,510) 9,271,941 656 (309,428) 85,000 8,797,424 (193,759) (152) 84,848 85,000 (94,110) 8,703,314 — (193,759) $ 9,054,367 $ (91,854) $ 8,962,513 $ 8,603,665 $ (94,110) $ 8,509,555 Revolving Credit Facility(1) Term Loan A(1) Term Loan B(1)(2) Australian Dollar Term Loan (the “AUD Term Loan”)(3)(4) UK Bilateral Revolving Credit Facility(4) 37/8% GBP Senior Notes due 2025 (the “GBP Notes “)(5)(7)(8) 47/8% Senior Notes due 2027 (the “47/8% Notes due 2027”)(5)(6)(7) 51/4% Senior Notes due 2028 (the “51/4% Notes due 2028”)(5)(6)(7) 5% Senior Notes due 2028 (the “5% Notes due 2028”)(5)(6)(7) 47/8% Senior Notes due 2029 (the “47/8% Notes due 2029”)(5)(6)(7) 51/4% Senior Notes due 2030 (the “51/4% Notes due 2030”)(5)(6)(7) 41/2% Senior Notes due 2031 (the “41/2% Notes”)(5)(6)(7) 5% Senior Notes due 2032 (the “5% Notes due 2032”)(5)(7)(9) 55/8% Senior Notes due 2032 (the “55/8% Notes”)(5)(6)(7) Real Estate Mortgages, Financing Lease Liabilities and Other(10) Accounts Receivable Securitization Program(11) Total Long-term Debt Less Current Portion Long-term Debt, Net of Current Portion (1) The capital stock or other equity interests of most of our United States subsidiaries, and up to 66% of the capital stock or other equity interests of most of our first-tier foreign subsidiaries, are pledged to secure these debt instruments, together with all intercompany obligations (including promissory notes) of subsidiaries owed to us or to one of our United States subsidiary guarantors. In addition, Iron Mountain Canada Operations ULC (“Canada Company”) has pledged 66% of the capital stock of its subsidiaries, and all intercompany obligations (including promissory notes) owed to or held by it, to secure the Canadian dollar subfacility under the Revolving Credit Facility. The fair value (Level 3 of fair value hierarchy described at Note 2.o.) of these debt instruments approximates the carrying value (as borrowings under these debt instruments are based on current variable market interest rates (plus a margin that is subject to change based on our consolidated leverage ratio)), as of December 31, 2021 and 2020. (2) The amount of debt for the Term Loan B (as defined below) reflects an unamortized original issue discount of $903 and $1,129 as of December 31, 2021 and 2020, respectively. (3) The amount of debt for the AUD Term Loan reflects an unamortized original issue discount of $348 and $862 as of December 31, 2021 and 2020, respectively. (4) The fair value (Level 3 of fair value hierarchy described at Note 2.o.) of this debt instrument approximates the carrying value as borrowings under this debt instrument are based on a current variable market interest rate. (5) The fair values (Level 1 of fair value hierarchy described at Note 2.o.) of these debt instruments are based on quoted market prices for these notes on December 31, 2021 and 2020, respectively. 104 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 7. DEBT (CONTINUED) (6) Collectively, the “Parent Notes". IMI is the direct obligor on the Parent Notes, which are fully and unconditionally guaranteed, on a senior basis, by IMI’s direct and indirect 100% owned United States subsidiaries that represent the substantial majority of our United States operations (the “Guarantors”). These guarantees are joint and several obligations of the Guarantors. The remainder of our subsidiaries do not guarantee the Parent Notes. (7) Collectively, the “Unregistered Notes". The Unregistered Notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or under the securities laws of any other jurisdiction. Unless they are registered, the Unregistered Notes may be offered only in transactions that are exempt from registration under the Securities Act or the securities laws of any other jurisdiction. (8) (9) Iron Mountain (UK) PLC (“IM UK”) is the direct obligor on the GBP Notes, which are fully and unconditionally guaranteed, on a senior basis, by IMI and the Guarantors. These guarantees are joint and several obligations of IMI and the Guarantors. Iron Mountain Information Management Services, Inc. (“IMIM Services”) is the direct obligor on the 5% Notes due 2032, which are fully and unconditionally guaranteed, on a senior basis, by IMI and the other Guarantors. These guarantees are joint and several obligations of IMI and such Guarantors. (10) We believe the fair value (Level 3 of fair value hierarchy described at Note 2.o.) of this debt approximates its carrying value. This debt includes the following: Real estate mortgages(i) Financing lease liabilities(ii) Other notes and other obligations(iii) DECEMBER 31, 2021 DECEMBER 31, 2020 $ $ 58,933 $ 356,729 44,986 460,648 $ 71,673 366,311 73,938 511,922 (i) Bear interest at approximately 3.6% and 3.3% at December 31, 2021 and 2020, respectively, and includes $50,000 outstanding under our Mortgage Securitization Program at both December 31, 2021 and 2020. (ii) Bear a weighted average interest rate of 5.9% at both December 31, 2021 and 2020. (iii) These notes and other obligations, which were assumed by us as a result of certain acquisitions bear a weighted average interest rate of 10.7% at both December 31, 2021 and 2020. (11) The Accounts Receivable Securitization Special Purpose Subsidiaries are the obligors under this program. We believe the fair value (Level 3 of fair value hierarchy described at Note 2.o.) of this debt approximates its carrying value. A. CREDIT AGREEMENT Our credit agreement (the "Credit Agreement") consists of a revolving credit facility (the “Revolving Credit Facility”) and a term loan (the “Term Loan A”). The Revolving Credit Facility enables IMI and certain of its United States and foreign subsidiaries to borrow in United States dollars and (subject to sublimits) a variety of other currencies (including Canadian dollars, British pounds sterling and Euros, among other currencies) in an aggregate outstanding amount not to exceed $1,750,000. Under the Credit Agreement, we have the option to request additional commitments of up to $1,260,000, in the form of term loans or through increased commitments under the Revolving Credit Facility, subject to the conditions specified in the Credit Agreement. The Credit Agreement is scheduled to mature on June 3, 2023, at which point all obligations become due. The original principal amount of the Term Loan A was $250,000 and is to be paid in quarterly installments in an amount equal to $3,125 per quarter, with the remaining balance due on June 3, 2023. IMI and the Guarantors guarantee all obligations under the Credit Agreement. The interest rate on borrowings under the Credit Agreement varies depending on our choice of interest rate and currency options, plus an applicable margin, which varies based on our consolidated leverage ratio. Additionally, the Credit Agreement requires the payment of a commitment fee on the unused portion of the Revolving Credit Facility, which fee ranges from between 0.25% to 0.4% based on our consolidated leverage ratio and fees associated with outstanding letters of credit. As of December 31, 2021, we had no outstanding borrowings under the Revolving Credit Facility and $203,125 aggregate outstanding principal amount under the Term Loan A. At December 31, 2021, we had various outstanding letters of credit totaling $3,039 under the Revolving Credit Facility. The remaining amount available for borrowing under the Revolving Credit Facility as of December 31, 2021, which is based on IMI’s leverage ratio, the last 12 months' earnings before interest, taxes, depreciation and amortization and rent expense (“EBITDAR”), other adjustments as defined in the Credit Agreement and current external debt, was $1,746,961 (which amount represents the maximum availability as of such date). Available borrowings under the Revolving Credit Facility are subject to compliance with our indenture covenants as discussed below. The average interest rate in effect under the Revolving Credit Facility and Term Loan A was 1.9% as of both December 31, 2021 and 2020. IRON MOUNTAIN 2021 FORM 10-K 105 Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 7. DEBT (CONTINUED) IMI’s wholly owned subsidiary, Iron Mountain Information Management, LLC (“IMIM”), has an incremental term loan B with a principal amount of $700,000 (the “Term Loan B”). The Term Loan B, which matures on January 2, 2026, was issued at 99.75% of par. The Term Loan B holders benefit from the same security and guarantees as other borrowings under the Credit Agreement. The Term Loan B holders also benefit from the same affirmative and negative covenants as other borrowings under the Credit Agreement; however, the Term Loan B holders are not generally entitled to the benefits of the financial covenants under the Credit Agreement. Principal payments on the Term Loan B are to be paid in quarterly installments of $1,750 per quarter during the period June 30, 2018 through December 31, 2025, with the balance due on January 2, 2026. The Term Loan B may be prepaid without penalty at any time. The Term Loan B bears interest at a rate of LIBOR plus 1.75%. As of December 31, 2021, we had $673,750 aggregate outstanding principal amount under the Term Loan B. The interest rate in effect under Term Loan B as of December 31, 2021 and 2020 was 3.1% and 1.9%, respectively. REVOLVING CREDIT FACILITY $1,750,000 Outstanding borrowings $0 TERM LOAN A $250,000 Aggregate outstanding principal amount $203,125 TERM LOAN B $700,000 Aggregate outstanding principal amount $673,750 N/A Interest rate As of December 31, 2021 1.9% Interest rate As of December 31, 2021 3.1% Interest rate As of December 31, 2021 B. NOTES ISSUED UNDER INDENTURES Each series of notes shown below (i) is effectively subordinated to all of our secured indebtedness, including under the Credit Agreement, to the extent of the value of the collateral securing such indebtedness, (ii) ranks pari passu in right of payment with each other and with debt outstanding under the Credit Agreement, the senior notes shown below and other “senior debt” we incur from time to time, and (iii) is structurally subordinated to all liabilities of our subsidiaries that do not guarantee such series of notes. The key terms of our indentures are as follows: SENIOR NOTES GBP Notes 47/8% Notes due 2027 51/4% Notes due 2028 5% Notes due 2028 47/8% Notes due 2029 51/4% Notes due 2030 41/2% Notes 5% Notes due 2032 55/8% Notes AGGREGATE PRINCIPAL AMOUNT DIRECT OBLIGOR MATURITY DATE CONTRACTUAL INTEREST RATE £ $ $ $ $ $ $ $ $ 400,000 IM UK November 15, 2025 1,000,000 825,000 500,000 1,000,000 1,300,000 1,100,000 IMI IMI IMI IMI IMI IMI 750,000 IMIM Services 600,000 IMI September 15, 2027 March 15, 2028 July 15, 2028 September 15, 2029 July 15, 2030 February 15, 2031 July 15, 2032 July 15, 2032 37/8% 47/8% 51/4% 5% 47 /8% 51 /4% 41/2% 5% 55/8% INTEREST PAYMENTS DUE PAR CALL DATE(1) May 15 and November 15 November 15, 2022 March 15 and September 15 September 15, 2025 March 15 and September 15 March 15, 2025 January 15 and July 15 July 15, 2025 March 15 and September 15 September 15, 2027 January 15 and July 15 July 15, 2028 February 15 and August 15 February 15, 2029 May 15 and November 15 July 15, 2027 January 15 and July 15 July 15, 2029 (1) We may redeem the notes at any time, at our option, in whole or in part. Prior to the par call date, we may redeem the notes at the redemption price or make-whole premium specified in the applicable indenture, together with accrued and unpaid interest to, but excluding, the redemption date. On or after the par call date, we may redeem the notes at a price equal to 100% of the principal amount being redeemed, together with accrued and unpaid interest to, but excluding, the redemption date. Each of the indentures for the notes provides that we must repurchase, at the option of the holders, the notes at 101% of their principal amount, plus accrued and unpaid interest, upon the occurrence of a “Change of Control,” which is defined in each respective indenture. Except for required repurchases upon the occurrence of a Change of Control or in the event of certain asset sales, each as described in the respective indenture, we are not required to make sinking fund or redemption payments with respect to any of the notes. 106 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 7. DEBT (CONTINUED) DECEMBER 2021 OFFERING On December 28, 2021, IMIM Services completed a private offering of: SERIES OF NOTES 5% Notes due 2032 AGGREGATE PRINCIPAL AMOUNT $ 750,000 The 5% Notes due 2032 were issued at 100.000% of par. The total net proceeds of approximately $737,800 from the issuance of the 5% Notes due 2032, after deducting the initial purchasers’ commissions, were used to finance the purchase price of the ITRenew Transaction, which closed on January 25, 2022, and to pay related fees and expenses. At December 31, 2021, the net proceeds from the 5% Notes due 2032 were used to temporarily repay borrowings under our Revolving Credit Facility and Accounts Receivable Securitization Program and invest in money market funds. 2020 OFFERINGS a. JUNE 2020 OFFERINGS On June 22, 2020, IMI completed private offerings of the following series of notes in the amounts set forth below (collectively, the "June 2020 Offerings"): SERIES OF NOTES 5% Notes due 2028 51/4% Notes due 2030 55/8% Notes AGGREGATE PRINCIPAL AMOUNT $ 500,000 1,300,000 600,000 The 5% Notes due 2028, the 51/4% Notes due 2030 and the 55/8% Notes were issued at 100.000% of par. The total net proceeds of approximately $2,376,000 from the June 2020 Offerings, after deducting the initial purchasers’ commissions, were used to redeem all of the 43/8% Notes, the 6% Notes and the 53/4% Notes and to repay a portion of the outstanding borrowings under the Revolving Credit Facility. On June 29, 2020, we redeemed all of the $500,000 in aggregate principal outstanding of the 43/8% Notes at 100.000% of par and all of the $600,000 in aggregate principal outstanding of the 6% Notes at 102.000% of par, plus, in each case, accrued and unpaid interest to, but excluding, the redemption date. We recorded a charge of $17,040 to Other (income) expense, net during the second quarter of 2020 related to the early extinguishment of this debt, representing the call premium associated with the early redemption of the 6% Notes, as well as a write-off of unamortized deferred financing costs associated with the early redemption of the 43/8% Notes and the 6% Notes. On July 2, 2020, we redeemed all of the $1,000,000 in aggregate principal outstanding of the 53/4% Notes at 100.958% of par, plus accrued and unpaid interest to, but excluding, the redemption date. We recorded a charge of $15,310 to Other (income) expense, net during the third quarter of 2020 related to the early extinguishment of this debt, representing the call premium and write-off of unamortized deferred financing fees. b. AUGUST 2020 OFFERING On August 18, 2020, IMI completed a private offering of: SERIES OF NOTES 41/2% Notes AGGREGATE PRINCIPAL AMOUNT $ 1,100,000 The 41/2% Notes were issued at 100.000% of par. The total net proceeds of approximately $1,089,000 from the issuance of the 41/2% Notes, after deducting the initial purchasers’ commissions, were used to redeem all of the CAD Notes, the Euro Notes, and the 53/8% Notes and to repay a portion of the outstanding borrowings under the Revolving Credit Facility. IRON MOUNTAIN 2021 FORM 10-K 107 Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 7. DEBT (CONTINUED) On August 21, 2020, we redeemed all of the 250,000 CAD in aggregate principal outstanding of the CAD Notes at 104.031% of par, 300,000 Euro in aggregate principal outstanding of the Euro Notes at 101.500% of par and $250,000 in aggregate principal outstanding of the 53/8% Notes at 106.628% of par, plus, in each case accrued and unpaid interest to, but excluding, the redemption date. We recorded a charge of $35,950 to Other (income) expense, net during the third quarter of 2020 related to the early extinguishment of the CAD Notes, the Euro Notes and the 53/8% Notes, representing the call premiums and write off unamortized deferred financing costs associated with the early redemption of these debt instruments. C. AUSTRALIAN DOLLAR TERM LOAN Iron Mountain Australia Group Pty, Ltd. (“IM Australia”), a wholly owned subsidiary of IMI, has an AUD term loan with an original principal balance of 350,000 Australian dollars (“AUD Term Loan”). All indebtedness associated with the AUD Term Loan was issued at 99% of par. Principal payments on the AUD Term Loan are to be paid in quarterly installments in an aggregate amount of 8,750 Australian dollars per year. The AUD Term Loan bears interest at BBSY (an Australian benchmark variable interest rate) plus 3.875%. The AUD Term Loan is scheduled to mature on September 22, 2022, at which point all obligations become due. The full amount of the AUD Term Loan is classified within the current portion of long-term debt in our Consolidated Balance Sheet as of December 31, 2021. As of December 31, 2021, we had 307,813 Australian dollars ($223,530 based upon the exchange rate between the United States dollar and the Australian dollar as of December 31, 2021) outstanding on the AUD Term Loan. As of December 31, 2020, we had 316,563 Australian dollars ($244,014 based upon the exchange rate between the United States dollar and the Australian dollar as of December 31, 2020) outstanding on the AUD Term Loan. The interest rate in effect under the AUD Term Loan was 4.0% and 3.9% as of December 31, 2021 and 2020, respectively. OUTSTANDING BORROWINGS AU$307,813 4.0% Interest rate As of December 31, 2021 D. UK BILATERAL REVOLVING CREDIT FACILITY IM UK and Iron Mountain (UK) Data Centre Limited has a 140,000 British pounds sterling Revolving Credit Facility (the “UK Bilateral Facility”) with Barclays Bank PLC. The maximum amount permitted to be borrowed under the UK Bilateral Facility is 140,000 British pounds sterling, and we have the option to request additional commitments of up to 125,000 British pounds sterling, subject to the conditions specified in the UK Bilateral Facility. The UK Bilateral Facility is fully drawn. The UK Bilateral Facility is secured by certain properties in the United Kingdom. IMI and the Guarantors guarantee all obligations under the UK Bilateral Facility. On May 25, 2021, Iron Mountain (UK) PLC and Iron Mountain (UK) Data Centre Limited (collectively, the "UK Borrowers") entered into an amendment to the UK Bilateral Facility with Barclays Bank PLC to (i) modify the interest rate from LIBOR plus 2.25% to LIBOR plus 2.0% (with flexibility built in for the expected transition away from LIBOR) and (ii) add an additional option to extend the maturity date by one year. After this amendment, the UK Bilateral Facility contains two one-year options that allow us to extend the maturity date beyond the September 23, 2022 expiration date, subject to certain conditions specified in the UK Bilateral Facility, including the lender's consent. On September 23, 2021, the UK Borrowers executed the one-year option to extend the maturity date to September 24, 2023.The interest rate in effect under the UK Bilateral Facility was 2.1% and 2.3% as of December 31, 2021 and 2020, respectively. MAXIMUM AMOUNT £140,000 OPTIONAL ADDITIONAL COMMITMENTS £125,000 2.1% Interest rate As of December 31, 2021 108 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 7. DEBT (CONTINUED) E. ACCOUNTS RECEIVABLE SECURITIZATION PROGRAM We participate in an accounts receivable securitization program (the “Accounts Receivable Securitization Program”) involving several of our wholly owned subsidiaries and certain financial institutions. Under the Accounts Receivable Securitization Program, certain of our subsidiaries sell substantially all of their United States accounts receivable balances to our wholly owned special purpose entities, Iron Mountain Receivables QRS, LLC and Iron Mountain Receivables TRS, LLC (the “Accounts Receivable Securitization Special Purpose Subsidiaries”). The Accounts Receivable Securitization Special Purpose Subsidiaries use the accounts receivable balances to collateralize loans obtained from certain financial institutions. The Accounts Receivable Securitization Special Purpose Subsidiaries are consolidated subsidiaries of IMI. The Accounts Receivable Securitization Program is accounted for as a collateralized financing activity, rather than a sale of assets, and therefore: (i) accounts receivable balances pledged as collateral are presented as assets and borrowings are presented as liabilities on our Consolidated Balance Sheets, (ii) our Consolidated Statements of Operations reflect the associated charges for bad debt expense related to pledged accounts receivable (a component of selling, general and administrative expenses) and reductions to revenue due to billing and service related credit memos issued to customers and related reserves, as well as interest expense associated with the collateralized borrowings and (iii) receipts from customers related to the underlying accounts receivable are reflected as operating cash flows and borrowings and repayments under the collateralized loans are reflected as financing cash flows within our Consolidated Statements of Cash Flows. IMIM retains the responsibility of servicing the accounts receivable balances pledged as collateral for the Accounts Receivable Securitization Program and IMI provides a performance guaranty. The maximum availability allowed is limited by eligible accounts receivable, as defined under the terms of the Accounts Receivable Securitization Program. On June 28, 2021, we entered into an amendment to the Accounts Receivable Securitization Program to extend the maturity date from July 30, 2021 to July 1, 2023, at which point all obligations become due. The interest rate under the amended Accounts Receivable Securitization Program is LIBOR plus 1.0%. The full amount outstanding under the Accounts Receivable Securitization Program is classified within current portion of long-term debt at December 31, 2020 in our Condensed Consolidated Balance Sheets. There were no other changes to the terms of the Accounts Receivable Securitization Program. MAXIMUM AMOUNT $300,000 OUTSTANDING BORROWINGS $0 N/A Interest rate As of December 31, 2021 F. CASH POOLING Certain of our subsidiaries participate in cash pooling arrangements (the “Cash Pools”) to help manage global liquidity requirements. Under the Cash Pools, cash deposited by participating subsidiaries with certain financial institutions are pledged as security against the debit balances of other participating subsidiaries, and legal rights of offset are provided and, therefore, amounts are presented in our Consolidated Balance Sheets on a net basis. Each subsidiary receives interest on the cash balances held on deposit or pays interest on its debit balances based on an applicable rate as defined in the Cash Pools. We utilize two separate Cash Pools with Bank Mendes Gans (“BMG”), an independently operated wholly owned subsidiary of ING Group, one of which we utilize to manage global liquidity requirements for our qualified REIT subsidiaries (the “BMG QRS Cash Pool”) and the other for our taxable REIT subsidiaries (the “BMG TRS Cash Pool”). We have executed overdraft facility agreements for the BMG QRS Cash Pool and BMG TRS Cash Pool, each in an amount not to exceed $10,000. Each overdraft facility permits us to cover a temporary net debit position in the applicable pool. IRON MOUNTAIN 2021 FORM 10-K 109 Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 7. DEBT (CONTINUED) During the third quarter of 2021, certain of our subsidiaries in the Asia Pacific region began to participate in two cash pooling arrangements with JP Morgan Chase Bank, N.A. (“JPM”), one of which we utilize to manage global liquidity requirements for our QRSs in the Asia Pacific region (the “JPM QRS Cash Pool") and the other for our TRSs in the Asia Pacific region (the "JPM TRS Cash Pool") (collectively, the “JPM Cash Pools”). We have executed overdraft facility agreements for the JPM QRS Cash Pool and the JPM TRS Cash Pool in amounts not to exceed $12,000 and $10,000, respectively. Each overdraft facility permits us to cover a temporary net debit position in the applicable pool. The approximate amount of the net cash position, gross position and outstanding debit balances for each of our cash pools as of December 31, 2021 and 2020 were as follows: DECEMBER 31, 2021 DECEMBER 31, 2020 GROSS CASH POSITION OUTSTANDING DEBIT BALANCES NET CASH POSITION GROSS CASH POSITION OUTSTANDING DEBIT BALANCES NET CASH POSITION BMG QRS Cash Pool $ 552,900 $ (552,100) $ 800 $ 448,700 $ (447,400) $ BMG TRS Cash Pool JPM QRS Cash Pool JPM TRS Cash Pool 606,000 9,400 12,000 (603,900) (9,200) (9,900) 2,100 200 2,100 555,500 (553,500) — — — — 1,300 2,000 — — The net cash position balances as of December 31, 2021 and 2020 are reflected as Cash and cash equivalents in our Consolidated Balance Sheets. G. LETTERS OF CREDIT As of December 31, 2021, we had outstanding letters of credit totaling $36,480, of which $3,039 reduce our borrowing capacity under the Revolving Credit Facility (as described above). The letters of credit expire at various dates between January 2022 and March 2025. H. 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 fixed charge coverage ratio, a net total lease adjusted leverage ratio and a net secured debt lease adjusted leverage 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 EBITDAR-based calculations and the bond indentures use EBITDA-based calculations as the primary measures of financial performance for purposes of calculating leverage and fixed charge coverage ratios. The bond indenture EBITDA-based calculations include our consolidated subsidiaries, other than those we have designated as “Unrestricted Subsidiaries” as defined in the 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 December 31, 2021 and 2020. Noncompliance with these leverage and fixed charge coverage ratios would have a material adverse effect on our financial condition. 110 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 7. DEBT (CONTINUED) I. MATURITIES OF LONG-TERM DEBT (GROSS OF DISCOUNTS) ARE AS FOLLOWS: YEAR 2022 2023 2024 2025 2026 Thereafter Net Discounts Net Deferred Financing Costs Total Long-term Debt (including current portion) 8. COMMITMENTS AND CONTINGENCIES A. PURCHASE COMMITMENTS $ AMOUNT 310,432 445,318 42,716 569,806 717,368 7,280,062 9,365,702 (1,251) (92,510) $ 9,271,941 We have certain contractual obligations related to purchase commitments which require minimum payments as follows: YEAR 2022 2023 2024 2025 2026 Thereafter PURCHASE COMMITMENTS(1) $ 295,529 70,853 64,105 38,567 7,646 855 $ 477,555 (1) Purchase commitments (i) include obligations for future construction costs associated with the expansion of our Global Data Center Business, which represent a significant amount of the purchase commitments due in 2022 and (ii) exclude our operating and financing lease obligations (see Note 2.i.). B. SELF-INSURED LIABILITIES We are self-insured up to certain limits for costs associated with workers’ compensation claims, vehicle accidents, property and general business liabilities, and benefits paid under employee healthcare and short-term disability programs. At December 31, 2021 and 2020, there were $46,797 and $47,959, respectively, of self-insurance accruals reflected in Accrued expenses on our Consolidated Balance Sheets. The measurement of these costs requires the consideration of historical cost experience and judgments about the present and expected levels of cost per claim. We account for these costs primarily through actuarial methods, which develop estimates of the undiscounted liability for claims incurred, including those claims incurred but not reported. These methods provide estimates of future claim costs based on claims incurred as of the balance sheet date. IRON MOUNTAIN 2021 FORM 10-K 111 Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 8. COMMITMENTS AND CONTINGENCIES (CONTINUED) C. LITIGATION—GENERAL 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. A portion of the defense and/or settlement costs associated with such litigation is covered by various commercial liability insurance policies purchased by us and, in limited cases, indemnification from third parties. Our policy is to establish reserves for loss contingencies when the losses are both probable and reasonably estimable. We record legal costs associated with loss contingencies as expenses in the period in which they are incurred. 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 $25,000 over the next several years. 9. STOCKHOLDERS’ EQUITY MATTERS Our board of directors has adopted a dividend policy under which we have paid, and in the future intend to pay, quarterly cash dividends on our common stock. The amount and timing of future dividends will continue to be subject to the approval of our board of directors, in its sole discretion, and to applicable legal requirements. In 2019, 2020 and 2021, our board of directors declared the following dividends: DECLARATION DATE February 7, 2019 May 22, 2019 July 26, 2019 October 31, 2019 February 13, 2020 May 5, 2020 August 5, 2020 November 4, 2020 February 24, 2021 May 6, 2021 August 5, 2021 November 4, 2021 DIVIDEND PER SHARE RECORD DATE TOTAL AMOUNT PAYMENT DATE $ 0.6110 0.6110 March 15, 2019 $ June 17, 2019 175,242 175,389 April 2, 2019 July 2, 2019 0.6110 September 16, 2019 175,434 October 2, 2019 0.6185 December 16, 2019 177,687 January 2, 2020 0.6185 0.6185 March 16, 2020 June 15, 2020 178,047 178,212 April 6, 2020 July 2, 2020 0.6185 September 15, 2020 178,224 October 2, 2020 0.6185 December 15, 2020 178,290 January 6, 2021 0.6185 0.6185 March 15, 2021 June 15, 2021 178,569 179,026 April 6, 2021 July 6, 2021 0.6185 September 15, 2021 179,080 October 6, 2021 0.6185 December 15, 2021 179,132 January 6, 2022 On February 24, 2022, we declared a dividend to our stockholders of record as of March 15, 2022 of $0.6185 per share, payable on April 6, 2022. 112 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 9. STOCKHOLDERS’ EQUITY MATTERS (CONTINUED) During the years ended December 31, 2021, 2020 and 2019, we declared dividends in an aggregate and per share amount, based on the weighted average number of common shares outstanding during each respective year, as follows: YEAR ENDED DECEMBER 31, 2021 2020 2019 Declared distributions $ 715,807 $ 712,773 $ 703,752 Amount per share each distribution represents based on weighted average number of common shares outstanding 2.47 2.47 2.45 For federal income tax purposes, distributions to our stockholders are generally treated as nonqualified ordinary dividends (potentially eligible for the lower effective tax rates available for “qualified REIT dividends”), qualified ordinary dividends or return of capital. The United States Internal Revenue Service requires historical C corporation earnings and profits to be distributed prior to any REIT distributions, which may affect the character of each distribution to our stockholders, including whether and to what extent each distribution is characterized as a qualified or nonqualified ordinary dividend. In addition, certain of our distributions qualify as capital gain distributions. For the years ended December 31, 2021, 2020, and 2019, the dividends we paid on our common shares were classified as follows: Nonqualified ordinary dividends Qualified ordinary dividends Capital gains Return of capital YEAR ENDED DECEMBER 31, 2021 2020 2019 53.9 % 13.0 % 21.8 % 11.3 % 43.0 % 0.0 % 49.5 % 7.5 % 54.8 % 4.5 % 14.7 % 26.0 % 100.0 % 100.0 % 100.0 % Dividends paid during the years ended December 31, 2021, 2020, and 2019 which were classified as qualified ordinary dividends for federal income tax purposes primarily related to the distribution of historical C corporation earnings and profits related to certain acquisitions completed during the years ended December 31, 2021, 2020, and 2019. In 2021, the percentage of our dividend that was classified as a capital gain was 21.8% and was primarily related to the sale of land and buildings in the United States and the United Kingdom. In 2020, the percentage of our dividend that was classified as a capital gain was 49.5% and primarily related to the sale of land and buildings in the United States. In 2019, the percentage of our dividend that was classified as a capital gain was 14.7% and primarily related to the sale of land and buildings in the United Kingdom. 10. INCOME TAXES We have been organized and have operated as a REIT effective beginning with our taxable year that ended on December 31, 2014. As a REIT, we are generally permitted to deduct from our federal taxable income the dividends we pay to our stockholders. The income represented by such dividends is not subject to federal taxation at the entity level but is taxed, if at all, at the stockholder level. The income of our domestic taxable REIT subsidiaries (“TRSs”), which hold our domestic operations that may not be REIT-compliant as currently operated and structured, is subject, as applicable, to federal and state corporate income tax. In addition, we and our subsidiaries continue to be subject to foreign income taxes in other jurisdictions in which we have business operations or a taxable presence, regardless of whether assets are held or operations are conducted through subsidiaries disregarded for federal income tax purposes or TRSs. We will also be subject to a separate corporate income tax on any gains recognized on the sale or disposition of any asset previously owned by a C corporation during a five-year period after the date we first owned the asset as a REIT asset that are attributable to “built-in gains” with respect to that asset on that date. We will also be subject to a built-in gains tax on our depreciation recapture recognized into income as a result of accounting method changes in connection with our acquisition activities. If we fail to remain qualified for taxation as a REIT, we will be subject to federal income tax at regular corporate income tax rates. Even if we remain qualified for taxation as a REIT, we may be subject to some federal, state, local and foreign taxes on our income and property in addition to taxes owed with respect to our TRS operations. In particular, while state income tax regimes often parallel the federal income tax regime for REITs, many states do not completely follow federal rules and some do not follow them at all. IRON MOUNTAIN 2021 FORM 10-K 113 Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 10. INCOME TAXES (CONTINUED) The significant components of our deferred tax assets and deferred tax liabilities as of December 31, 2021 and 2020 are presented below: Deferred Tax Assets: Accrued liabilities and other adjustments Net operating loss carryforwards Valuation allowance Deferred Tax Liabilities: Other assets, principally due to differences in amortization Plant and equipment, principally due to differences in depreciation Other Net deferred tax liability DECEMBER 31, 2021 2020 $ 54,859 $ 90,996 (51,744) 94,111 (178,657) (76,204) (46,281) (301,142) $ (207,031) $ 52,527 96,710 (46,938) 102,299 (186,682) (59,711) (29,265) (275,658) (173,359) The deferred tax assets and deferred tax liabilities as of December 31, 2021 and 2020 are presented below: DECEMBER 31, 2021 2020 Noncurrent deferred tax assets (Included in Other, a component of Other assets, net) $ 16,903 $ Deferred income taxes (223,934) 25,018 (198,377) At December 31, 2021, we have federal and state net operating loss carryforwards of which we are expecting an insignificant tax benefit to be realized. We have assets for foreign net operating losses of $85,466, with various expiration dates (and in some cases no expiration date), subject to a valuation allowance of approximately 47%. Rollforward of the valuation allowance is as follows: YEAR ENDED DECEMBER 31, 2021 2020 2019 BALANCE AT BEGINNING OF THE YEAR CHARGED (CREDITED) TO EXPENSE OTHER INCREASES/ (DECREASES)(1) BALANCE AT END OF THE YEAR $ 46,938 $ 8,406 $ (3,600) $ 60,003 55,666 (8,337) 6,211 (4,728) (1,874) 51,744 46,938 60,003 (1) Other increases and decreases in valuation allowances are primarily related to changes in foreign currency exchange rates. 114 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 10. INCOME TAXES (CONTINUED) The components of income (loss) from continuing operations before provision (benefit) for income taxes for the years ended December 31, 2021, 2020 and 2019 are as follows: United States Canada Other Foreign YEAR ENDED DECEMBER 31, 2021 2020 2019 $ $ 212,460 $ 276,145 $ 78,780 337,775 52,332 44,228 629,015 $ 372,705 $ 203,225 48,326 76,591 328,142 The provision (benefit) for income taxes for the years ended December 31, 2021, 2020 and 2019 consist of the following components: Federal—current Federal—deferred State—current State—deferred Foreign—current Foreign—deferred YEAR ENDED DECEMBER 31, 2021 2020 2019 $ 54,867 $ (10,424) $ 14,322 9,566 (526) 83,154 14,907 8,834 2,956 (625) 50,063 (21,195) Provision (Benefit) for Income Taxes $ 176,290 $ 29,609 $ 7,262 (3,356) 3,943 (1,126) 49,350 3,858 59,931 A reconciliation of total income tax expense and the amount computed by applying the current federal statutory tax rate of 21.0% to income (loss) from continuing operations before provision (benefit) for income taxes for the years ended December 31, 2021, 2020 and 2019, respectively, is as follows: Computed "expected” tax provision Changes in income taxes resulting from: Tax adjustment relating to REIT State taxes (net of federal tax benefit) Increase (decrease) in valuation allowance (net operating losses) Withholding Taxes Reserve (reversal) accrual and audit settlements (net of federal tax benefit) Foreign tax rate differential Disallowed foreign interest, Subpart F income, and other foreign taxes Other, net Provision (Benefit) for Income Taxes YEAR ENDED DECEMBER 31, 2021 2020 2019 $ 132,093 $ 78,268 $ 68,910 (8,203) 8,027 8,406 23,654 3,072 9,856 (3,437) 2,822 (60,378) 2,258 (8,337) 6,835 (7,409) 9,472 13,407 (4,507) $ 176,290 $ 29,609 $ (40,577) 2,115 6,211 5,281 514 8,562 8,960 (45) 59,931 Our effective tax rates for the years ended December 31, 2021, 2020 and 2019 were 28.0%, 7.9% and 18.3%, respectively. Our effective tax rate is subject to variability in the future due to, among other items: (1) changes in the mix of income between our qualified REIT subsidiaries (“QRSs”) and our TRSs, as well as among the jurisdictions in which we operate; (2) tax law changes; (3) volatility in foreign exchange gains and losses; (4) the timing of the establishment and reversal of tax reserves; and (5) our ability to utilize net operating losses that we generate. IRON MOUNTAIN 2021 FORM 10-K 115 Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 10. INCOME TAXES (CONTINUED) The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate were: YEAR ENDED DECEMBER 31, 2020 The benefit derived from the dividends paid deduction of $60,378 and the impact of differences in the tax rates at which our foreign earnings are subject to, resulting in a tax provision of $9,472. 2019 The benefit derived from the dividends paid deduction of $40,577 and the impact of differences in the tax rates at which our foreign earnings are subject to, resulting in a tax provision of $8,562. 2021 The benefit derived from the dividends paid deduction of $8,203 which was offset by (1) the impact of differences in the tax rates at which our foreign earnings are subject to, resulting in a tax provision of $9,856, and (2) foreign withholding taxes of $23,654, which were either paid during the year or accrued, for the deferred tax liability for the U.S. tax impact of undistributed earnings of foreign TRSs that are no longer intended to be permanently reinvested outside the United States. As a REIT, we are entitled to a deduction for dividends paid, resulting in a substantial reduction of federal income tax expense. As a REIT, substantially all of our income tax expense will be incurred based on the earnings generated by our foreign subsidiaries and our domestic TRSs. Following our conversion to a REIT in 2014, we concluded that it was not our intent to reinvest our current and future undistributed earnings of our foreign subsidiaries indefinitely outside the United States. As of December 31, 2016, we concluded that it is our intent to indefinitely reinvest our current and future undistributed earnings of certain of our unconverted foreign TRSs outside the United States. During 2021, as a result of the enactment of a tax law and the closing of various acquisitions, we reassessed this intention and concluded that it is no longer our intention to reinvest our undistributed earnings of our foreign TRSs indefinitely outside the United States. As a REIT, future repatriation of incremental undistributed earnings of our foreign subsidiaries will not be subject to federal or state income tax, with the exception of foreign withholding taxes. However, such future repatriations may require distributions to our stockholders in accordance with REIT distribution rules, and any such distribution may then be taxable, as appropriate, at the stockholder level. We expect to provide for foreign withholding taxes on the current and future earnings of all of our foreign subsidiaries as the result of such reassessment. The evaluation of an uncertain tax position is a two-step process. The first step is a recognition process whereby we determine whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The second step is a measurement process whereby a tax position that meets the more likely than not recognition threshold is calculated to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. We have elected to recognize interest and penalties associated with uncertain tax positions as a component of the provision (benefit) for income taxes in the accompanying Consolidated Statements of Operations. We recorded an increase of $823 and $1,780 for gross interest and penalties for the years ended December 31, 2021 and 2019, respectively. We recorded a decrease of $1,499 for gross interest and penalties for the year ended December 31, 2020. We had $6,805 and $6,212 accrued for the payment of interest and penalties as of December 31, 2021 and 2020, respectively. A summary of tax years that remain subject to examination by major tax jurisdictions is as follows: TAX YEARS See Below 2020 to present 2014 to present TAX JURISDICTION United States—Federal and State United Kingdom Canada 116 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 10. INCOME TAXES (CONTINUED) The normal statute of limitations for United States federal tax purposes is three years from the date the tax return is filed; however, the statute of limitations may remain open for periods longer than three years in instances where a federal tax examination is in progress. The 2020, 2019 and 2018 tax years remain subject to examination for United States federal tax purposes as well as net operating loss carryforwards utilized in these years. The normal statute of limitations for state purposes is between three to five years. However, certain of our state statute of limitations remain open for periods longer than this when audits are in progress. We are subject to income taxes in the United States and numerous foreign jurisdictions. We are subject to examination by various tax authorities in jurisdictions in which we have business operations or a taxable presence. We regularly assess the likelihood of additional assessments by tax authorities and provide for these matters as appropriate. As of December 31, 2021, we had $27,772 of reserves related to uncertain tax positions, of which $24,627 and $3,145 is included in other long-term liabilities and deferred income taxes, respectively, in the accompanying Consolidated Balance Sheet. As of December 31, 2020, we had $25,969 of reserves related to uncertain tax positions, of which $23,402 and $2,567 is included in other long-term liabilities and deferred income taxes, respectively, in the accompanying Consolidated Balance Sheet. Although we believe our tax estimates are appropriate, the final determination of tax audits and any related litigation could result in changes in our estimates. A rollforward of unrecognized tax benefits is as follows: Gross tax contingencies—December 31, 2018 Gross additions based on tax positions related to the current year Gross additions for tax positions of prior years Gross reductions for tax positions of prior years Lapses of statutes Settlements Gross tax contingencies—December 31, 2019 Gross additions based on tax positions related to the current year Gross additions for tax positions of prior years Gross reductions for tax positions of prior years Lapses of statutes Settlements Gross tax contingencies—December 31, 2020 Gross additions based on tax positions related to the current year Gross additions for tax positions of prior years Gross reductions for tax positions of prior years Lapses of statutes Settlements Gross tax contingencies—December 31, 2021 $ $ 35,320 2,914 1,271 (299) (4,034) (104) 35,068 2,907 80 (5,617) (4,480) (1,989) 25,969 3,893 344 (536) (1,663) (235) 27,772 The reversal of these reserves of $27,772 as of December 31, 2021 will be recorded as a reduction of our income tax provision, if sustained. We believe that it is reasonably possible that an amount up to approximately $5,364 of our unrecognized tax positions may be recognized by the end of 2022 as a result of a lapse of statute of limitations or upon closing and settling significant audits in various worldwide jurisdictions. IRON MOUNTAIN 2021 FORM 10-K 117 Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 11. SEGMENT INFORMATION As of December 31, 2021, our three reportable segments are described as follows: (1) Global Records and Information Management (“Global RIM”) Business includes several distinct offerings: (i) Records Management, which stores physical records and provides healthcare information services, vital records services, courier operations, and the collection, handling and disposal of sensitive documents (collectively, “Records Management”) for customers in 63 countries around the globe. (ii) Data Management, which provides storage and rotation of backup computer media as part of corporate disaster recovery plans, including service and courier operations (“Data Protection & Recovery”); server and computer backup services; and related services offerings, (collectively, “Data Management”). (iii) Global Digital Solutions, which develops, implements and supports comprehensive storage and information management solutions for the complete lifecycle of our customers’ information, including the management of physical records, conversion of documents to digital formats and digital storage of information, primarily in the United States and Canada. (iv) Secure Shredding, which includes the scheduled pick-up of office records that customers accumulate in specially designed secure containers we provide and is a natural extension of our hardcopy records management operations, completing the lifecycle of a record. Complementary to our shredding operations is the sale of the resultant waste paper to third-party recyclers. Through a combination of shredding facilities and mobile shredding units consisting of custom built trucks, we are able to offer secure shredding services to our customers throughout the United States, Canada and South Africa. (v) Secure IT Asset Disposition ("Secure ITAD"), a component of asset life cycle management, provides secure disposition of obsolete IT assets with: industry leading secure logistics and chain of custody practices, environmentally-responsible asset processing and recycling, and data sanitization and asset refurbishment services that enable value recovery through asset remarketing. Our service focuses on protecting and eradicating customer data while maintaining strong, audible, and transparent chain of custody practices. We are able to offer this service in over 30 countries. (vi) Consumer Storage, which provides on-demand, valet storage for consumers (“Consumer Storage”) across 31 markets in North America through a strategic partnership that utilizes data analytics and machine learning to provide effective customer acquisition and a convenient and seamless consumer storage experience. (2) Global Data Center Business, which provides enterprise-class data center facilities and hyperscale-ready capacity to protect mission-critical assets and ensure the continued operation of our customers’ IT infrastructure, with secure, reliable and flexible data center options. As of December 31, 2021, our Global Data Center Business footprint spans nine markets in the United States and seven international markets. UNITED STATES Denver, Colorado Kansas City, Missouri Boston, Massachusetts Boyers, Pennsylvania Manassas, Virginia Edison, New Jersey Columbus, Ohio Phoenix and Scottsdale, Arizona INTERNATIONAL MARKETS Amsterdam London Singapore Frankfurt (directly and through an unconsolidated joint venture) Mumbai (through an unconsolidated joint venture) Pune (through an unconsolidated joint venture) Noida (through an unconsolidated joint venture) 118 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 11. SEGMENT INFORMATION (CONTINUED) (3) Corporate and Other Business, which consists primarily of Adjacent Businesses and other corporate items. Our Adjacent Businesses is comprised of: (i) Entertainment Services, which includes entertainment and media that helps industry clients store, safeguard and deliver physical media of all types, and provides digital content repository systems that house, distribute, and archive key media assets, throughout the United States, Canada, France, China - Hong Kong S.A.R., the Netherlands and the United Kingdom and (ii) Fine Arts, which provides technical expertise in the handling, installation and storing of art in the United States, Canada and Europe. Our Corporate and Other Business segment also includes costs related to executive and staff functions, including finance, human resources and IT, which benefit the enterprise as a whole. An analysis of our business segment information and reconciliation to the accompanying Consolidated Financial Statements is as follows: IRON MOUNTAIN 2021 FORM 10-K 119 Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 11. SEGMENT INFORMATION (CONTINUED) As of and for the Year Ended December 31, 2021 Total Revenues Storage Rental Service Depreciation and Amortization Depreciation Amortization Adjusted EBITDA Total Assets(1) Expenditures for Segment Assets Capital Expenditures Cash Paid for Acquisitions, Net of Cash Acquired Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs As of and for the Year Ended December 31, 2020 Total Revenues Storage Rental Service Depreciation and Amortization Depreciation Amortization Adjusted EBITDA Total Assets(1) Expenditures for Segment Assets Capital Expenditures Cash Paid for Acquisitions, Net of Cash Acquired Acquisitions of Customer Relationships, Customer Inducements and Contract Fulfillment Costs As of and for the Year Ended December 31, 2019 Total Revenues Storage Rental Service Depreciation and Amortization Depreciation Amortization Adjusted EBITDA Total Assets(1) Expenditures for Segment Assets Capital Expenditures Cash Paid for Acquisitions, Net of Cash Acquired Acquisitions of Customer Relationships, Customer Inducements, Contract Fulfillment Costs and third-party commissions GLOBAL RIM BUSINESS GLOBAL DATA CENTER BUSINESS CORPORATE AND OTHER BUSINESS TOTAL CONSOLIDATED $ 3,976,163 $ 326,898 $ 188,470 $ 2,471,894 1,504,269 468,527 313,701 154,826 1,734,227 11,028,611 368,271 211,917 97,044 289,592 37,306 148,023 93,679 54,344 137,349 2,911,823 422,274 320,768 88,998 108,633 79,837 63,872 57,692 6,180 (236,877) 509,597 96,353 78,397 17,956 4,491,531 2,870,119 1,621,412 680,422 465,072 215,350 1,634,699 14,450,031 886,898 611,082 203,998 59,310 12,508 — 71,818 $ 3,699,280 $ 279,312 $ 168,678 $ 2,373,783 1,325,497 455,567 309,969 145,598 1,574,069 10,938,359 338,006 150,175 118,581 69,250 263,695 15,617 134,844 83,106 51,738 126,576 2,727,654 249,459 243,699 — 5,760 116,613 52,065 61,658 54,487 7,171 (224,924) 483,254 44,389 44,389 — — $ 3,812,433 $ 257,151 $ 193,000 $ 2,320,076 1,492,357 454,652 330,534 124,118 1,566,065 10,753,218 398,690 248,232 54,717 246,925 10,226 133,927 78,939 54,988 121,517 2,535,848 427,935 392,029 — 114,086 78,914 69,622 46,850 22,772 (218,573) 527,750 56,242 52,722 3,520 4,147,270 2,754,091 1,393,179 652,069 447,562 204,507 1,475,721 14,149,267 631,854 438,263 118,581 75,010 4,262,584 2,681,087 1,581,497 658,201 456,323 201,878 1,469,009 13,816,816 882,867 692,983 58,237 95,741 35,906 — 131,647 (1) Excludes all intercompany receivables or payables and investment in subsidiary balances. 120 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 11. SEGMENT INFORMATION (CONTINUED) The accounting policies of the reportable segments are the same as those described in Note 2. Adjusted EBITDA for each segment is defined as income (loss) from continuing operations before interest expense, net, provision (benefit) for income taxes, depreciation and amortization (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 • Other (income) expense, net • Restructuring Charges • • Intangible impairments (Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate) • Stock-based compensation expense • COVID-19 Costs (as defined below) Internally, we use Adjusted EBITDA as the basis for evaluating the performance of, and allocated resources to, our operating segments. A reconciliation of Income (Loss) from Continuing Operations to Adjusted EBITDA on a consolidated basis for the years ended December 31, 2021, 2020 and 2019 is as follows: Income (Loss) from Continuing Operations $ 452,725 $ 343,096 $ 268,211 YEAR ENDED DECEMBER 31, 2021 2020 2019 Add/(Deduct): Interest expense, net Provision (benefit) for income taxes Depreciation and amortization Acquisition and Integration Costs Restructuring Charges Intangible impairments (Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate) Other (income) expense, net, excluding our share of losses (gains) from our unconsolidated joint ventures(1) Stock-based compensation expense COVID-19 Costs(2) Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures 417,961 176,290 680,422 12,764 206,426 — 418,535 29,609 652,069 — 194,396 23,000 419,298 59,931 658,201 13,293 48,597 — (172,041) (363,537) (63,824) (205,746) 61,001 — 4,897 133,611 34,272 9,285 1,385 25,720 36,194 — 3,388 Adjusted EBITDA $ 1,634,699 $ 1,475,721 $ 1,469,009 (1) Includes foreign currency transaction (gains) losses, net, debt extinguishment expense and other, net. (2) Costs that are incremental and directly attributable to the COVID-19 pandemic which are not expected to recur once the pandemic ends (“COVID-19 Costs”). For the year ended December 31, 2020, approximately $7,600 and $1,600 of COVID-19 Costs are included within Cost of sales and Selling, general and administrative expenses, respectively, on our Consolidated Statement of Operations. These costs include the purchase of personal protective equipment for our employees and incremental cleaning costs of our facilities, among other direct costs. IRON MOUNTAIN 2021 FORM 10-K 121 Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 11. SEGMENT INFORMATION (CONTINUED) Information as to our operations in different geographical areas for the years ended December 31, 2021, 2020 and 2019 is as follows: Revenues: United States United Kingdom Canada Australia Remaining Countries Long-lived Assets: United States United Kingdom Canada Australia Remaining Countries YEAR ENDED DECEMBER 31, 2021 2020 2019 $ 2,713,147 $ 2,577,084 $ 2,632,586 294,675 252,385 148,431 1,082,893 247,667 224,860 133,815 963,844 274,931 243,033 143,511 968,523 $ 7,867,841 $ 7,818,059 $ 7,862,262 914,732 562,911 528,703 838,491 556,120 575,862 755,859 556,591 530,755 3,134,577 3,090,948 2,875,010 Information as to our revenues by product and service lines by segment for the years ended December 31, 2021, 2020 and 2019 is as follows: For the Year Ended December 31, 2021 Records Management(1) Data Management(1) Information Destruction(1)(2) Data Center(1) For the Year Ended December 31, 2020 Records Management(1) Data Management(1) Information Destruction(1)(2) Data Center(1) For the Year Ended December 31, 2019 Records Management(1) Data Management(1) Information Destruction(1)(2) Data Center(1) GLOBAL RIM BUSINESS GLOBAL DATA CENTER BUSINESS CORPORATE AND OTHER BUSINESS TOTAL CONSOLIDATED $ 3,074,605 $ — $ 125,784 $ 3,200,389 466,517 435,041 — — — 326,898 62,686 — — 529,203 435,041 326,898 $ 2,852,296 $ — $ 102,003 $ 2,954,299 488,198 358,786 — — — 279,312 66,675 — — 554,873 358,786 279,312 $ 2,866,192 $ — $ 128,954 $ 2,995,146 520,082 426,159 — — — 257,151 64,046 — — 584,128 426,159 257,151 (1) Each of the offerings within our product and service lines has a component of revenue that is storage rental related and a component that is service revenues, except the destruction services offering, which does not have a storage rental component. (2) Includes Secure Shredding services. 122 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 12. RELATED PARTY TRANSACTIONS In October 2020, in connection with the Frankfurt JV Transaction, we entered into agreements whereby we will 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”). Revenues and expenses associated with the Frankfurt JV Agreements are presented as a component of our Global Data Business segment. During the years ended December 31, 2021 and 2020, we recognized revenue of approximately $19,600 and $400, respectively, associated with the Frankfurt JV Agreements. In March 2019, in connection with the Consumer Storage Transaction and the MakeSpace Investment, 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”). Revenues and expenses associated with the MakeSpace Agreement are presented as a component of our Global RIM Business segment. During the years ended December 31, 2021, 2020 and 2019, we recognized revenue of approximately $34,700, $33,600, and $22,500, respectively, associated with the MakeSpace Agreement. During the years ended December 31, 2021, 2020 and 2019, the Company had no other related party transactions. 13. PROJECT SUMMIT In October 2019, we announced Project Summit, our global program designed to better position us for future growth and achievement of our strategic objectives. We expanded Project Summit during the first quarter of 2020 to include additional opportunities to streamline our business and operations, as well as accelerated the timing of certain opportunities previously identified. As of December 31, 2021, we have completed Project Summit. As a result of the program we have simplified our global structure, rebalanced resources to focus on higher growth areas, realigned our management structure to create a more dynamic, agile organization, made investments to enhance the customer experience and leveraged new technology solutions that enabled us to modernize our service delivery model and more efficiently utilize our fleet, labor and real estate. The implementation of Project Summit resulted in total operating expenditures ("Restructuring Charges") of approximately $450,000 that primarily consisted of: (1) employee severance costs; (2) internal costs associated with the development and implementation of Project Summit initiatives; (3) professional fees, primarily related to third party consultants who assisted with the design and execution of various initiatives as well as project management activities and (4) system implementation and data conversion costs. Restructuring Charges included in the accompanying Consolidated Statement of Operations for the years ended December 31, 2021, 2020 and 2019, and from the inception of Project Summit through December 31, 2021, are as follows: YEAR ENDED DECEMBER 31, 2021 YEAR ENDED DECEMBER 31, 2020 YEAR ENDED DECEMBER 31, 2019 FROM INCEPTION OF PROJECT SUMMIT THROUGH DECEMBER 31, 2021 Employee severance costs Professional fees and other costs Restructuring Charges $ $ 22,809 $ 183,617 206,426 $ 47,349 $ 147,047 194,396 $ 20,850 $ 27,747 48,597 $ 91,008 358,411 449,419 Restructuring Charges included in the accompanying Consolidated Statement of Operations by segment for the years ended December 31, 2021, 2020 and 2019, and from inception of Project Summit through December 31, 2021, are as follows: YEAR ENDED DECEMBER 31, 2021 YEAR ENDED DECEMBER 31, 2020 YEAR ENDED DECEMBER 31, 2019 FROM INCEPTION OF PROJECT SUMMIT THROUGH DECEMBER 31, 2021 Global RIM Business Global Data Center Business Corporate and Other Business Restructuring Charges $ $ 59,033 $ 67,140 $ 21,900 $ 3,062 144,331 1,632 125,624 306 26,391 206,426 $ 194,396 $ 48,597 $ 148,073 5,000 296,346 449,419 IRON MOUNTAIN 2021 FORM 10-K 123 Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2021 (In thousands, except share and per share data) 13. PROJECT SUMMIT (CONTINUED) A rollforward of the accrued Restructuring Charges, which is included as a component of Accrued expenses and other current liabilities in our Consolidated Balance Sheet from the inception of Project Summit through December 31, 2021 is as follows: Inception of Project Summit Amounts accrued Payments Balance as of December 31, 2019 Amounts accrued Payments Other, including currency translation adjustments Balance as of December 31, 2020 Amounts accrued Payments Other, including currency translation adjustments Balance as of December 31, 2021 14. SUBSEQUENT EVENTS EMPLOYEE SEVERANCE COSTS PROFESSIONAL FEES AND OTHER TOTAL ACCRUED RESTRUCTURING CHARGES $ $ $ — $ 20,850 (16,027) 4,823 47,349 (32,455) (3,439) 16,278 $ 22,809 (29,956) 2,858 11,989 $ — $ 27,747 (14,793) 12,954 147,047 (136,222) (4) 23,775 $ 183,617 (199,664) — 7,728 $ — 48,597 (30,820) 17,777 194,396 (168,677) (3,443) 40,053 206,426 (229,620) 2,858 19,717 On January 25, 2022, we acquired an approximately 80% interest in Intercept Parent, Inc. (“ITRenew”), a company with asset lifecycle management operations primarily in the United States, for approximately $725,000 (the “ITRenew Transaction”). The acquisition agreement also provides us the option to purchase, and the shareholders the option to sell, the remaining approximately 20% interest in ITRenew as follows: (i) approximately 16% on or after the second anniversary of the ITRenew Transaction and (ii) approximately 4% on or after the third anniversary of the ITRenew Transaction (collectively, the ”Remaining Interest"), each at a purchase price to be determined based upon the achievement of certain performance metrics, but for no less than $200,000 in total. 124 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION DECEMBER 31, 2021 (Dollars in thousands) Schedule III - Schedule of Real Estate and Accumulated Depreciation (“Schedule III”) reflects the cost and associated accumulated depreciation for the real estate facilities that are owned. The gross cost included in Schedule III includes the cost for land, land improvements, buildings, building improvements and racking. Schedule III does not reflect the 1,184 leased facilities in our real estate portfolio. In addition, Schedule III does not include any value for financing leases for property that is classified as land, buildings and building improvements in our consolidated financial statements. The following table presents a reconciliation of the gross amount of real estate assets, as presented in Schedule III below, to the sum of the historical book value of land, buildings and building improvements, racking and construction in progress as disclosed in Note 2.h. to Notes to Consolidated Financial Statements as of December 31, 2021: Gross Amount of Real Estate Assets, As Reported on Schedule III Add Reconciling Items: Book value of racking included in leased facilities(1) Book value of financing leases(2) Book value of construction in progress(3) Total Reconciling Items Gross Amount of Real Estate Assets, As Disclosed in Note 2.h. $ 4,129,251 1,483,435 385,238 225,817 2,094,490 $ 6,223,741 (1) Represents the gross book value of racking installed in our 1,184 leased facilities, which is included in historical book value of racking in Note 2.h., but excluded from Schedule III. (2) Represents the gross book value of buildings and building improvements that are subject to financing leases, which are included in the historical book value of building and building improvements in Note 2.h., but excluded from Schedule III. (3) Represents the gross book value of non-real estate assets that are included in the historical book value of construction in progress assets in Note 2.h. The historical book value of real estate assets associated with owned buildings that were related to construction in progress as of December 31, 2021 is included in Schedule III. The following table presents a reconciliation of the accumulated depreciation of real estate assets, as presented in Schedule III below, to the total accumulated depreciation for all property, plant and equipment presented on our Consolidated Balance Sheet as of December 31, 2021: Accumulated Depreciation of Real Estate Assets, As Reported on Schedule III Add Reconciling Items: Accumulated Depreciation - non-real estate assets(1) Accumulated Depreciation - racking in leased facilities(2) Accumulated Depreciation - financing leases(3) Total Reconciling Items Accumulated Depreciation, As Reported on Consolidated Balance Sheet $ 1,160,490 1,662,689 1,032,075 123,905 2,818,669 $ 3,979,159 (1) Represents the accumulated depreciation of non-real estate assets that is included in the total accumulated depreciation of property, plant and equipment on our Consolidated Balance Sheet, but excluded from Schedule III as the assets to which this accumulated depreciation relates are not considered real estate assets associated with owned buildings. (2) Represents the accumulated depreciation of racking as of December 31, 2021 installed in our 1,184 leased facilities, which is included in total accumulated depreciation of property, plant and equipment on our Consolidated Balance Sheet, but excluded from Schedule III, as disclosed in Footnote 1 to Schedule III. (3) Represents the accumulated depreciation of buildings and building improvements as of December 31, 2021 that are subject to financing leases, which is included in the total accumulated depreciation of property, plant and equipment on our Consolidated Balance Sheet, but excluded from Schedule III, as disclosed in Footnote 1 to Schedule III. IRON MOUNTAIN 2021 FORM 10-K 125 Table of Contents Part IV IRON MOUNTAIN INCORPORATED SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED) DECEMBER 31, 2021 (Dollars in thousands) (A) (B) (C) (D) (E) (F) REGION/COUNTRY/ STATE/CAMPUS ADDRESS North America FACILITIES(1) ENCUMBRANCES INITIAL COST TO COMPANY(1) COST CAPITALIZED SUBSEQUENT TO ACQUISITION(1)(2) GROSS AMOUNT CARRIED AT CLOSE OF CURRENT PERIOD(1)(8) ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD(1)(8) DATE OF CONSTRUCTION OR ACQUIRED(3) LIFE ON WHICH DEPRECIATION IN LATEST INCOME STATEMENT IS COMPUTED United States (Including Puerto Rico) 140 Oxmoor Ct, Birmingham, Alabama 1420 North Fiesta Blvd, Gilbert, Arizona 4802 East Van Buren, Phoenix, Arizona 615 North 48th Street, Phoenix, Arizona 2955 S. 18th Place, Phoenix, Arizona 4449 South 36th St, Phoenix, Arizona 8521 E. Princess Drive, Scottsdale, Arizona 600 Burning Tree Rd, Fullerton, California 21063 Forbes St, Hayward, California 1025 North Highland Ave, Los Angeles, California 1010 - 1006 North Mansfield, Los Angeles, California 1350 West Grand Ave, Oakland, California 1760 North Saint Thomas Circle, Orange, California 1915 South Grand Ave, Santa Ana, California 2680 Sequoia Dr, South Gate, California 336 Oyster Point Blvd, South San Francisco, California 25250 South Schulte Rd, Tracy, California 3576 N. Moline, Aurora, Colorado 5151 E. 46th Ave, Denver, Colorado 1 $ — $ 1,322 $ 978 $ 2,300 $ 1,252 2001 Up to 40 years 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 — — — — — — — — — — — — — — — — — — 1,637 2,777 4,414 2,291 2001 Up to 40 years 15,599 276,487 292,086 7,309 2019 Up to 40 years 423,107 28,176 451,283 59,325 2018 (5) Up to 40 years 12,178 14,690 26,868 6,956 2007 Up to 40 years 7,305 1,059 8,364 5,355 2012 Up to 40 years 87,865 2,576 90,441 16,742 2018 (5) Up to 40 years 4,762 1,911 6,673 3,212 2002 Up to 40 years 13,407 378 13,785 3,158 2019 (9) Up to 40 years 10,168 27,117 37,285 16,371 1988 Up to 40 years 749 — 749 147 2014 Up to 40 years 15,172 7,606 22,778 15,728 1997 Up to 40 years 4,576 510 5,086 2,098 2002 Up to 40 years 3,420 1,305 4,725 2,099 2001 Up to 40 years 6,329 2,914 9,243 4,416 2002 Up to 40 years 15,100 233 15,333 2,717 2019 (9) Up to 40 years 3,049 1,785 4,834 2,379 2001 Up to 40 years 1,583 6,312 4,492 724 6,075 7,036 2,239 2001 Up to 40 years 1,974 2014 Up to 40 years 126 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED) DECEMBER 31, 2021 (Dollars in thousands) (A) (B) (C) (D) (E) (F) REGION/COUNTRY/ STATE/CAMPUS ADDRESS FACILITIES(1) ENCUMBRANCES INITIAL COST TO COMPANY(1) COST CAPITALIZED SUBSEQUENT TO ACQUISITION(1)(2) GROSS AMOUNT CARRIED AT CLOSE OF CURRENT PERIOD(1)(8) ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD(1)(8) DATE OF CONSTRUCTION OR ACQUIRED(3) LIFE ON WHICH DEPRECIATION IN LATEST INCOME STATEMENT IS COMPUTED North America (continued) United States (Including Puerto Rico (continued) 11333 E 53rd Ave, Denver, Colorado 4300 Brighton Boulevard, Denver, Colorado 20 Eastern Park Rd, East Hartford, Connecticut Kennedy Road, Windsor, Connecticut 150-200 Todds Ln, Wilmington, Delaware 13280 Vantage Way, Jacksonville, Florida 12855 Starkey Rd, Largo, Florida 7801 Riviera Blvd, Miramar, Florida 10002 Satellite Blvd, Orlando, Florida 3501 Electronics Way, West Palm Beach, Florida 1890 MacArthur Blvd, Atlanta, Georgia 3881 Old Gordon Rd, Atlanta, Georgia 5319 Tulane Drive SW, Atlanta, Georgia 6111 Live Oak Parkway, Norcross, Georgia 3150 Nifda Dr, Smyrna, Georgia 2425 South Halsted St, Chicago, Illinois 1301 S. Rockwell St, Chicago, Illinois 2604 West 13th St, Chicago, Illinois 2211 W. Pershing Rd, Chicago, Illinois 1 $ — $ 7,403 $ 10,348 $ 17,751 $ 10,571 2001 Up to 40 years 1 1 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $ 1 — — — — — — — — — — — — — — — — — — 116,336 23,590 139,926 18,893 2017 Up to 40 years 7,417 1,905 9,322 6,549 2002 Up to 40 years 10,447 32,111 42,558 23,522 2001 Up to 40 years 7,226 1,137 8,363 5,370 2002 Up to 40 years 1,853 590 2,443 1,085 2001 Up to 40 years 3,293 3,005 6,298 3,609 2001 Up to 40 years 8,250 1,927 264 343 8,514 1,247 2017 Up to 40 years 2,270 993 2001 Up to 40 years 4,201 13,933 18,134 8,252 2001 Up to 40 years 1,786 1,185 825 899 2,611 1,265 2002 Up to 40 years 2,084 955 2001 Up to 40 years 2,808 3,963 6,771 3,975 2002 Up to 40 years 3,542 2,802 6,344 683 2017 Up to 40 years 463 7,470 779 1,717 1,242 9,187 795 1990 Up to 40 years 4,694 2006 Up to 40 years 7,947 20,032 27,979 17,288 1999 Up to 40 years 404 2,954 3,358 2,948 2001 Up to 40 years 4,264 14,131 18,395 9,614 2001 Up to 40 years IRON MOUNTAIN 2021 FORM 10-K 127 Table of Contents Part IV IRON MOUNTAIN INCORPORATED SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED) DECEMBER 31, 2021 (Dollars in thousands) (A) (B) (C) (D) (E) (F) REGION/COUNTRY/ STATE/CAMPUS ADDRESS FACILITIES(1) ENCUMBRANCES INITIAL COST TO COMPANY(1) COST CAPITALIZED SUBSEQUENT TO ACQUISITION(1)(2) GROSS AMOUNT CARRIED AT CLOSE OF CURRENT PERIOD(1)(8) ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD(1)(8) DATE OF CONSTRUCTION OR ACQUIRED(3) LIFE ON WHICH DEPRECIATION IN LATEST INCOME STATEMENT IS COMPUTED North America (continued) United States (Including Puerto Rico) (continued) 2255 Pratt Blvd, Elk Grove, Illinois 4175 Chandler Dr Opus No. Corp, Hanover Park, Illinois 2600 Beverly Drive, Lincoln, Illinois 6090 NE 14th Street, Des Moines, Iowa South 7th St, Louisville, Kentucky 26 Parkway Drive (fka 133 Pleasant), Scarborough, Maine 8928 McGaw Ct, Columbia, Maryland 10641 Iron Bridge Rd, Jessup, Maryland 96 High St, Billerica, Massachusetts 120 Hampden St, Boston, Massachusetts 32 George St, Boston, Massachusetts 14500 Weston Pkwy, Cary, North Carolina 3435 Sharps Lot Rd, Dighton, Massachusetts 77 Constitution Boulevard, Franklin, Massachusetts Bearfoot Road, Northboro, Massachusetts 6601 Sterling Dr South, Sterling Heights, Michigan 31155 Wixom Rd, Wixom, Michigan 3140 Ryder Trail South, Earth City, Missouri Leavenworth St/18th St, Omaha, Nebraska 1 $ — $ 1,989 $ 3,930 $ 5,919 $ 1,847 2000 Up to 40 years 1 1 1 4 1 1 1 1 1 1 1 1 1 2 1 1 1 2 — 22,048 2,909 24,957 11,051 2014 Up to 40 years — — — — — — — — — — — — — — — — — 1,378 622 709 938 511 2,316 382 2015 Up to 40 years 1,133 478 2003 Up to 40 years 14,664 15,373 6,482 Various Up to 40 years 8,337 528 8,865 3,620 2015 (9) Up to 40 years 2,198 6,529 8,727 4,220 1999 Up to 40 years 3,782 1,608 5,390 2,965 2000 Up to 40 years 3,221 3,956 7,177 3,901 1998 Up to 40 years 164 939 1,103 609 2002 Up to 40 years 1,820 5,442 7,262 5,754 1991 Up to 40 years 1,880 2,229 4,109 2,234 1999 Up to 40 years 1,911 5,413 797 288 2,708 2,175 1999 Up to 40 years 5,701 1,001 2014 Up to 40 years 55,923 15,151 71,074 44,118 Various Up to 40 years 1,294 1,255 2,549 1,332 2002 Up to 40 years 4,000 3,072 1,509 3,429 5,509 3,060 2001 Up to 40 years 6,501 2,765 2004 Up to 40 years 2,924 18,489 21,413 8,555 Various Up to 40 years 128 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED) DECEMBER 31, 2021 (Dollars in thousands) (A) (B) (C) (D) (E) (F) REGION/COUNTRY/ STATE/CAMPUS ADDRESS FACILITIES(1) ENCUMBRANCES INITIAL COST TO COMPANY(1) COST CAPITALIZED SUBSEQUENT TO ACQUISITION(1)(2) GROSS AMOUNT CARRIED AT CLOSE OF CURRENT PERIOD(1)(8) ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD(1)(8) DATE OF CONSTRUCTION OR ACQUIRED(3) LIFE ON WHICH DEPRECIATION IN LATEST INCOME STATEMENT IS COMPUTED North America (continued) United States (Including Puerto Rico) (continued) 4105 North Lamb Blvd, Las Vegas, Nevada 17 Hydro Plant Rd, Milton, New Hampshire 3003 Woodbridge Avenue, Edison, New Jersey 811 Route 33, Freehold, New Jersey 51-69 & 77-81 Court St, Newark, New Jersey 560 Irvine Turner Blvd, Newark, New Jersey 231 Johnson Ave, Newark, New Jersey 650 Howard Avenue, Somerset, New Jersey 100 Bailey Ave, Buffalo, New York 64 Leone Ln, Chester, New York 1368 County Rd 8, Farmington, New York County Rd 10, Linlithgo, New York 37 Hurds Corner Road, Pawling, New York Ulster Ave/Route 9W, Port Ewen, New York Binnewater Rd, Rosendale, New York 220 Wavel St, Syracuse, New York 2235 Cessna Drive, Burlington, North Carolina 826 Church Street, Morrisville, North Carolina 1275 East 40th, Cleveland, Ohio 7208 Euclid Avenue, Cleveland, Ohio 1 $ — $ 3,430 $ 8,976 $ 12,406 $ 6,701 2002 Up to 40 years 1 1 3 1 1 1 1 1 1 1 2 1 3 2 1 1 1 1 1 — — — — — — — — — — — — — — — — — — — 6,179 4,499 10,678 7,269 2001 Up to 40 years 310,404 63,228 373,632 41,572 2018 (5) Up to 40 years 38,697 59,867 98,564 59,006 Various Up to 40 years 11,734 10,532 22,266 2,899 2015 Up to 40 years 9,522 2,875 12,397 1,350 2015 Up to 40 years 8,945 2,907 11,852 1,457 2015 Up to 40 years 3,585 11,892 15,477 7,080 2006 Up to 40 years 1,324 5,086 11,413 12,737 7,530 1998 Up to 40 years 1,450 6,536 3,740 2000 Up to 40 years 2,611 4,908 7,519 5,120 1998 Up to 40 years 102 3,249 3,351 1,912 2001 Up to 40 years 4,323 1,371 5,694 2,673 2005 Up to 40 years 23,137 12,301 35,438 24,492 2001 Up to 40 years 5,142 11,992 17,134 8,301 Various Up to 40 years 2,929 2,765 5,694 3,270 1997 Up to 40 years 1,602 7,087 3,129 3,336 334 266 606 4,140 1,936 332 2015 Up to 40 years 7,353 1,780 2017 Up to 40 years 3,735 7,476 2,234 1999 Up to 40 years 3,795 2001 Up to 40 years IRON MOUNTAIN 2021 FORM 10-K 129 Table of Contents Part IV IRON MOUNTAIN INCORPORATED SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED) DECEMBER 31, 2021 (Dollars in thousands) (A) (B) (C) (D) (E) (F) REGION/COUNTRY/ STATE/CAMPUS ADDRESS FACILITIES(1) ENCUMBRANCES INITIAL COST TO COMPANY(1) COST CAPITALIZED SUBSEQUENT TO ACQUISITION(1)(2) GROSS AMOUNT CARRIED AT CLOSE OF CURRENT PERIOD(1)(8) ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD(1)(8) DATE OF CONSTRUCTION OR ACQUIRED(3) LIFE ON WHICH DEPRECIATION IN LATEST INCOME STATEMENT IS COMPUTED North America (continued) United States (Including Puerto Rico) (continued) 4260 Tuller Ridge Rd, Dublin, Ohio 3366 South Tech Boulevard, Miamisburg, Ohio 7530 N. Leadbetter Road, Portland, Oregon Branchton Rd, Boyers, Pennsylvania 800 Carpenters Crossings, Folcroft, Pennsylvania Las Flores Industrial Park, Rio Grande, Puerto Rico 24 Snake Hill Road, Chepachet, Rhode Island 1061 Carolina Pines Road, Columbia, South Carolina 2301 Prosperity Way, Florence, South Carolina Mitchell Street, Knoxville, Tennessee 6005 Dana Way, Nashville, Tennessee 6600 Metropolis Drive, Austin, Texas Capital Parkway, Carrollton, Texas 1800 Columbian Club Dr, Carrolton, Texas 1905 John Connally Dr, Carrolton, Texas 13425 Branchview Ln, Dallas, Texas 1819 S. Lamar St, Dallas, Texas 2000 Robotics Place Suite B, Fort Worth, Texas 1202 Ave R, Grand Prairie, Texas 1 $ — $ 1,030 $ 1,881 $ 2,911 $ 1,641 1999 Up to 40 years 1 1 2 1 1 1 1 1 2 2 1 3 1 1 1 1 1 1 — — — — — — 29,092 1,291 30,383 4,165 2018 (5) Up to 40 years 5,187 1,874 7,061 4,449 2002 Up to 40 years 21,166 253,496 274,662 79,855 Various Up to 40 years 2,457 1,055 3,512 2,257 2000 Up to 40 years 4,185 3,598 7,783 4,971 2001 Up to 40 years 2,659 2,254 4,913 3,308 2001 Up to 40 years — 11,776 2,413 14,189 4,189 2016 (9) Up to 40 years — — — — — — — — — — — 2,846 1,287 4,133 1,625 2016 (9) Up to 40 years 718 4,575 5,293 2,438 Various Up to 40 years 1,827 3,671 5,498 2,290 2000 Up to 40 years 4,519 8,299 454 759 4,973 1,700 2011 Up to 40 years 9,058 2,958 2015 (9) Up to 40 years 19,673 1,746 21,419 10,709 2013 Up to 40 years 2,174 868 3,042 1,555 2000 Up to 40 years 3,518 3,693 7,211 4,470 2001 Up to 40 years 3,215 5,328 1,768 3,068 4,983 8,396 2,828 2000 Up to 40 years 3,378 2002 Up to 40 years 8,354 2,266 10,620 6,548 2003 Up to 40 years 130 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED) DECEMBER 31, 2021 (Dollars in thousands) (A) (B) (C) (D) (E) (F) REGION/COUNTRY/ STATE/CAMPUS ADDRESS FACILITIES(1) ENCUMBRANCES INITIAL COST TO COMPANY(1) COST CAPITALIZED SUBSEQUENT TO ACQUISITION(1)(2) GROSS AMOUNT CARRIED AT CLOSE OF CURRENT PERIOD(1)(8) ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD(1)(8) DATE OF CONSTRUCTION OR ACQUIRED(3) LIFE ON WHICH DEPRECIATION IN LATEST INCOME STATEMENT IS COMPUTED North America (continued) United States (Including Puerto Rico) (continued) 6203 Bingle Rd, Houston, Texas 3502 Bissonnet St, Houston, Texas 2600 Center Street, Houston, Texas 5707 Chimney Rock, Houston, Texas 5249 Glenmont Ave, Houston, Texas 15333 Hempstead Hwy, Houston, Texas 5757 Royalton Dr, Houston, Texas 9601 West Tidwell, Houston, Texas 7800 Westpark, Houston, Texas 1665 S. 5350 West, Salt Lake City, Utah 11052 Lakeridge Pkwy, Ashland, Virginia 2301 International Parkway, Fredericksburg, Virginia 11660 Hayden Road, Manassas, Virginia 4555 Progress Road, Norfolk, Virginia 3725 Thirlane Rd. N.W., Roanoke, Virginia 7700-7730 Southern Dr, Springfield, Virginia 22445 Randolph Dr, Sterling, Virginia 307 South 140th St, Burien, Washington 8908 W. Hallett Rd, Cheney, Washington 1 $ — $ 3,188 $ 11,719 $ 14,907 $ 9,488 2001 Up to 40 years 1 1 1 1 3 1 1 1 1 1 1 1 1 1 1 1 1 1 — — — — — — — — — — — — — — — — — — 7,687 734 8,421 6,228 2002 Up to 40 years 2,840 2,619 5,459 2,857 2000 Up to 40 years 1,032 1,211 2,243 1,198 2002 Up to 40 years 3,467 2,416 5,883 3,126 2000 Up to 40 years 6,327 38,154 44,481 16,481 2004 Up to 40 years 1,795 1,036 2,831 1,450 2000 Up to 40 years 1,680 2,408 4,088 1,533 2001 Up to 40 years 6,323 6,239 1,359 4,321 7,682 2,171 2015 (9) Up to 40 years 10,560 6,005 2002 Up to 40 years 1,709 1,927 3,636 2,107 1999 Up to 40 years 20,980 194 21,174 7,023 2015 (7) Up to 40 years 104,824 219,296 324,120 31,501 2020 Up to 40 years 6,527 1,903 8,430 3,767 2011 Up to 40 years 2,577 287 2,864 1,337 2015 (9) Up to 40 years 14,167 2,830 16,997 10,053 2002 Up to 40 years 7,598 4,450 12,048 6,643 2005 Up to 40 years 2,078 2,405 4,483 2,624 1999 Up to 40 years 510 4,281 4,791 2,434 1999 Up to 40 years IRON MOUNTAIN 2021 FORM 10-K 131 Table of Contents Part IV IRON MOUNTAIN INCORPORATED SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED) DECEMBER 31, 2021 (Dollars in thousands) (A) (B) (C) (D) (E) (F) REGION/COUNTRY/ STATE/CAMPUS ADDRESS FACILITIES(1) ENCUMBRANCES INITIAL COST TO COMPANY(1) COST CAPITALIZED SUBSEQUENT TO ACQUISITION(1)(2) GROSS AMOUNT CARRIED AT CLOSE OF CURRENT PERIOD(1)(8) ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD(1)(8) DATE OF CONSTRUCTION OR ACQUIRED(3) LIFE ON WHICH DEPRECIATION IN LATEST INCOME STATEMENT IS COMPUTED North America (continued) United States (Including Puerto Rico) (continued) 6600 Hardeson Rd, Everett, Washington 1201 N. 96th St, Seattle, Washington 4330 South Grove Road, Spokane, Washington 12021 West Bluemound Road, Wauwatosa, Wisconsin 1 $ — $ 5,399 $ 3,476 $ 8,875 $ 4,006 2002 Up to 40 years 1 1 1 — — — 4,496 2,655 7,151 3,926 2001 Up to 40 years 3,906 880 4,786 748 2015 Up to 40 years 1,307 2,143 3,450 1,640 1999 Up to 40 years 138 $ — $ 1,761,530 $ 1,420,439 $ 3,181,969 $ 850,818 132 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED) DECEMBER 31, 2021 (Dollars in thousands) (A) (B) (C) (D) (E) (F) REGION/COUNTRY/ STATE/CAMPUS ADDRESS FACILITIES(1) ENCUMBRANCES INITIAL COST TO COMPANY(1) COST CAPITALIZED SUBSEQUENT TO ACQUISITION(1)(2) GROSS AMOUNT CARRIED AT CLOSE OF CURRENT PERIOD(1)(8) ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD(1)(8) DATE OF CONSTRUCTION OR ACQUIRED(3) LIFE ON WHICH DEPRECIATION IN LATEST INCOME STATEMENT IS COMPUTED North America (continued) Canada One Command Court, Bedford 195 Summerlea Road, Brampton 10 Tilbury Court, Brampton 8825 Northbrook Court, Burnaby 8088 Glenwood Drive, Burnaby 5811 26th Street S.E., Calgary 3905-101 Street, Edmonton 68 Grant Timmins Drive, Kingston 3005 Boul. Jean- Baptiste Deschamps, Lachine 1655 Fleetwood, Laval 4005 Richelieu, Montreal 1209 Algoma Rd, Ottawa 1650 Comstock Rd, Ottawa 235 Edson Street, Saskatoon 640 Coronation Drive, Scarborough 610 Sprucewood Ave, Windsor 1 $ — $ 3,847 $ 4,768 $ 8,615 $ 4,794 2000 Up to 40 years 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 — — — — 5,403 7,123 12,526 6,452 2000 Up to 40 years 5,007 18,163 23,170 9,865 2000 Up to 40 years 8,091 2,601 10,692 5,330 2001 Up to 40 years 4,326 7,502 11,828 5,549 2005 Up to 40 years — 14,658 9,829 24,487 12,767 2000 Up to 40 years — — — — — — — — — 2,020 1,067 3,087 1,786 2000 Up to 40 years 3,639 2,751 790 831 4,429 587 2016 Up to 40 years 3,582 1,606 2000 Up to 40 years 8,196 20,519 28,715 14,996 2000 Up to 40 years 1,800 2,702 4,502 2,067 2000 Up to 40 years 1,059 7,210 8,269 4,738 2000 Up to 40 years 7,478 116 7,594 3,074 2017 Up to 40 years 829 1,748 2,577 1,038 2008 Up to 40 years 1,853 1,370 3,223 1,496 2000 Up to 40 years — 1,243 742 1,985 869 2007 Up to 40 years 16 $ 154 $ — $ 72,200 $ 87,081 $ 159,281 $ 77,014 — $ 1,833,730 $ 1,507,520 $ 3,341,250 $ 927,832 IRON MOUNTAIN 2021 FORM 10-K 133 Table of Contents Part IV IRON MOUNTAIN INCORPORATED SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED) DECEMBER 31, 2021 (Dollars in thousands) (A) (B) (C) (D) (E) (F) REGION/COUNTRY/ STATE/CAMPUS ADDRESS Europe Gewerbeparkstr. 3, Vienna, Austria Woluwelaan 147, Diegem, Belgium Stupničke Šipkovine 62, Zagreb, Croatia Kratitirion 9 Kokkinotrimithia Industrial District, Nicosia, Cyprus Karyatidon 1, Agios Sylas Industrial Area (3rd), Limassol, Cyprus G2-B, Engineering Square IDG Developer’s Area, 6th Oct City Giza, Egypt 65 Egerton Road, Birmingham, England Otterham Quay Lane, Gillingham, England Kemble Industrial Park, Kemble, England Gayton Road, Kings Lynn, England 17 Broadgate, Oldham, England Harpway Lane, Sopley, England Unit 1A Broadmoor Road, Swindom, England Jeumont- Schneider, Champagne Sur Seine, France Bat I-VII Rue de Osiers, Coignieres, France 26 Rue de I Industrie, Fergersheim, France Bat A, B, C1, C2, C3 Rue Imperiale, Gue de Longroi, France Le Petit Courtin Site de Dois, Gueslin, Mingieres, France ZI des Sables, Morangis, France FACILITIES(1) ENCUMBRANCES INITIAL COST TO COMPANY(1) COST CAPITALIZED SUBSEQUENT TO ACQUISITION(1)(2) GROSS AMOUNT CARRIED AT CLOSE OF CURRENT PERIOD(1)(8) ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD(1)(8) DATE OF CONSTRUCTION OR ACQUIRED(3) LIFE ON WHICH DEPRECIATION IN LATEST INCOME STATEMENT IS COMPUTED 1 $ — $ 6,542 $ 8,234 $ 14,776 $ 4,788 2010 Up to 40 years 1 1 1 1 — — 2,541 6,410 8,951 4,922 2003 Up to 40 years 1,408 1,517 2,925 221 2003 Up to 40 years — 3,136 2,723 5,859 807 2003 Up to 40 years — 1,935 (23) 1,912 260 2018 Up to 40 years 1 — 8,984 224 9,208 86 2021 (7) Up to 40 years 1 9 2 3 1 1 1 3 4 1 1 1 1 — 6,980 2,169 9,149 5,451 2003 Up to 40 years — 7,418 3,762 11,180 5,951 2004 Up to 40 years — 5,277 7,343 12,620 9,213 2003 Up to 40 years — 3,119 1,809 4,928 3,117 2003 Up to 40 years — — — 4,039 468 4,507 2,631 2008 Up to 40 years 681 1,509 2,190 1,547 2004 Up to 40 years 2,636 555 3,191 1,405 2006 Up to 40 years — 1,750 2,563 4,313 2,543 2003 Up to 40 years — 21,318 (431) 20,887 6,003 2016 (4) Up to 40 years — 1,322 (14) 1,308 367 2016 (4) Up to 40 years — 3,390 754 4,144 1,322 2016 (4) Up to 40 years — 14,141 (44) 14,097 2,876 2016 (4) Up to 40 years — 12,407 15,637 28,044 20,016 2004 Up to 40 years 134 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED) DECEMBER 31, 2021 (Dollars in thousands) (A) (B) (C) (D) (E) (F) REGION/COUNTRY/ STATE/CAMPUS ADDRESS Europe (continued) FACILITIES(1) ENCUMBRANCES INITIAL COST TO COMPANY(1) COST CAPITALIZED SUBSEQUENT TO ACQUISITION(1)(2) GROSS AMOUNT CARRIED AT CLOSE OF CURRENT PERIOD(1)(8) ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD(1)(8) DATE OF CONSTRUCTION OR ACQUIRED(3) LIFE ON WHICH DEPRECIATION IN LATEST INCOME STATEMENT IS COMPUTED 45 Rue de Savoie, Manissieux, Saint Priest, France $ Heinrich Lanz Alee 47, Frankfurt, Germany Gutenbergstrabe 55, Hamburg, Germany Brommer Weg 1, Wipshausen, Germany Warehouse and Offices 4 Springhill, Cork, Ireland 17 Crag Terrace, Dublin, Ireland Damastown Industrial Park, Dublin, Ireland Al Qastal, Amman, Jordan Vareseweg 130, Rotterdam, The Netherlands Howemoss Drive, Aberdeen, Scotland Traquair Road, Innerleithen, Scotland Nettlehill Road, Houston Industrial Estate, Livingston, Scotland Av Madrid s/n Poligono Industrial Matillas, Alcala de Henares, Spain Calle Bronce, 37, Chiloeches, Spain Ctra M.118 , Km.3 Parcela 3, Madrid, Spain Abanto Ciervava, Spain Plot No. S20704, Jebel Ali Free Zone Authority, United Arab Emirates 1 $ — $ 5,546 $ (103) $ 5,443 $ 1,201 2016 (4) Up to 40 years 1 1 1 1 1 1 1 1 2 1 1 1 1 1 2 1 — 80,591 (2,079) 78,512 — 2021 (8) Up to 40 years — 4,022 803 4,825 1,519 2016 (4) Up to 40 years — 3,220 1,855 5,075 3,564 2006 Up to 40 years — 9,040 2,666 11,706 5,555 2014 Up to 40 years — — — — 2,818 783 3,601 1,531 2001 Up to 40 years 16,034 7,399 23,433 9,453 2012 Up to 40 years 1,431 463 1,894 40 2021 (7) Up to 40 years 1,357 1,049 2,406 1,804 2015 (9) Up to 40 years — 6,970 6,008 12,978 5,878 Various Up to 40 years — 113 2,235 2,348 1,305 2004 Up to 40 years — 11,517 28,248 39,765 20,910 2001 Up to 40 years — 186 236 422 347 2014 Up to 40 years — — — — 11,011 3,696 14,707 3,814 2010 Up to 40 years 3,981 5,504 9,485 6,974 2001 Up to 40 years 1,053 (68) 985 483 Various Up to 40 years 29,300 2,194 31,494 439 2021 (7) Up to 40 years 54 $ — $ 297,214 $ 116,054 $ 413,268 $ 138,343 IRON MOUNTAIN 2021 FORM 10-K 135 Table of Contents Part IV IRON MOUNTAIN INCORPORATED SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED) DECEMBER 31, 2021 (Dollars in thousands) (A) (B) (C) (D) (E) (F) REGION/COUNTRY/ STATE/CAMPUS ADDRESS Latin America Amancio Alcorta 2396, Buenos Aires, Argentina Azara 1245, Buenos Aires, Argentina Spegazzini, Ezeiza Buenos Aires, Argentina Av Ernest de Moraes 815, Bairro Fim do Campo, Jarinu Brazil Rua Peri 80, Jundiai, Brazil Francisco de Souza e Melo, Rio de Janerio, Brazil Hortolandia, Sao Paulo, Brazil El Taqueral 99, Santiago, Chile Panamericana Norte 18900, Santiago, Chile Avenida Prolongacion del Colli 1104, Guadalajara, Mexico Privada Las Flores No. 25 (G3), Guadalajara, Mexico Tula KM Parque de Las, Huehuetoca, Mexico Carretera Pesqueria Km2.5(M3), Monterrey, Mexico Lote 2, Manzana A, (T2& T3), Toluca, Mexico Prolongacion de la Calle 7 (T4), Toluca, Mexico Panamericana Sur, KM 57.5, Lima, Peru Av. Elmer Faucett 3462, Lima, Peru Calle Los Claveles-Seccion 3, Lima, Peru FACILITIES(1) ENCUMBRANCES INITIAL COST TO COMPANY(1) COST CAPITALIZED SUBSEQUENT TO ACQUISITION(1)(2) GROSS AMOUNT CARRIED AT CLOSE OF CURRENT PERIOD(1)(8) ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD(1)(8) DATE OF CONSTRUCTION OR ACQUIRED(3) LIFE ON WHICH DEPRECIATION IN LATEST INCOME STATEMENT IS COMPUTED 2 $ — $ 655 $ 872 $ 1,527 $ 410 Various Up to 40 years 1 1 1 1 3 1 10 7 1 1 2 2 1 1 7 2 1 — 166 (164) 2 — 1998 Up to 40 years — 12,773 (10,726) 2,047 497 2012 Up to 40 years — 12,562 (5,091) 7,471 1,726 2016 (4) Up to 40 years — — — — 8,894 (3,729) 5,165 1,297 2016 (4) Up to 40 years 1,868 7,056 8,924 3,310 Various Up to 40 years 24,078 (5,747) 18,331 3,639 2,629 28,322 30,951 11,863 Various Up to 40 years 4,001 15,776 19,777 7,382 Various Up to 40 years — 374 1,291 1,665 1,131 2002 Up to 40 years — 905 1,160 2,065 1,049 2004 Up to 40 years — 19,937 (298) 19,639 4,468 2016 (4) Up to 40 years — 3,537 4,400 7,937 3,889 2004 Up to 40 years — 2,204 4,436 6,640 5,285 2002 Up to 40 years — 7,544 14,524 22,068 7,970 2007 Up to 40 years — 1,549 462 2,011 1,105 Various Up to 40 years — — 4,112 4,161 8,273 4,239 Various Up to 40 years 8,179 26,235 34,414 10,044 2010 Up to 40 years 45 $ — $ 115,967 $ 82,940 $ 198,907 $ 69,304 136 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV IRON MOUNTAIN INCORPORATED SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED) DECEMBER 31, 2021 (Dollars in thousands) (A) (B) (C) (D) (E) (F) REGION/COUNTRY/ STATE/CAMPUS ADDRESS Asia Warehouse No 4, Shanghai, China Jalan Karanggan Muda Raya No 59, Bogor Indonesia Jl. Amd Projakal KM 5.5 Rt 46, Kel. Graha Indah, Kec. Balikpapan Utara, Indonesia 1 Serangoon North Avenue 6, Singapore 2 Yung Ho Road, Singapore 26 Chin Bee Drive, Singapore IC1 69 Moo 2, Soi Wat Namdaeng, Bangkok, Thailand Australia 8 Whitestone Drive, Austins Ferry, Australia 6 Norwich Street, South Launceston, Australia Total FACILITIES(1) ENCUMBRANCES INITIAL COST TO COMPANY(1) COST CAPITALIZED SUBSEQUENT TO ACQUISITION(1)(2) GROSS AMOUNT CARRIED AT CLOSE OF CURRENT PERIOD(1)(8) ACCUMULATED DEPRECIATION AT CLOSE OF CURRENT PERIOD(1)(8) DATE OF CONSTRUCTION OR ACQUIRED(3) LIFE ON WHICH DEPRECIATION IN LATEST INCOME STATEMENT IS COMPUTED 1 $ 1 1 1 1 1 2 — $ 1,530 $ 881 $ 2,411 $ 567 2013 Up to 40 years — 7,897 5,142 13,039 2,999 2017 Up to 40 years — 125 — 125 5 2021 Up to 40 years — 58,637 52,044 110,681 10,931 2018 (9) Up to 40 years — — — 10,395 1,780 12,175 2,884 2016 (4) Up to 40 years 15,699 2,655 18,354 2,279 2016 (4) Up to 40 years 13,226 1,445 14,671 4,651 2016 (4) Up to 40 years 8 $ — $ 107,509 $ 63,947 $ 171,456 $ 24,316 1 1 — 681 2,646 3,327 559 2012 Up to 40 years — 1,090 (47) 1,043 136 2015 Up to 40 years 2 $ 263 $ — $ — $ 1,771 $ 2,599 $ 4,370 $ 695 2,356,191 $ 1,773,060 $ 4,129,251 $ 1,160,490 (1) The above information only includes the real estate facilities that are owned. The gross cost includes the cost for land, land improvements, buildings, building improvements and racking. The listing does not reflect the 1,184 leased facilities in our real estate portfolio. In addition, the above information does not include any value for financing leases for property that is classified as land, buildings and building improvements in our consolidated financial statements. (2) Amount includes cumulative impact of foreign currency translation fluctuations. (3) Date of construction or acquired represents the date we constructed the facility or acquired the facility through purchase or acquisition. (4) Property was acquired in connection with our acquisition of Recall Holdings Limited. (5) Property was acquired in connection with our acquisition of IO Data Centers, LLC. (6) Property was acquired in connection with our acquisition of Credit Suisse International and Credit Suisse AG. (7) Property was acquired in connection with our acquisition of Information Fort, LLC. (8) Property was acquired in connection with the Frankfurt data center acquisition. (9) This date represents the date the categorization of the property was changed from a leased facility to an owned facility. IRON MOUNTAIN 2021 FORM 10-K 137 Table of Contents Part IV IRON MOUNTAIN INCORPORATED SCHEDULE III—SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED) DECEMBER 31, 2021 (Dollars in thousands) (8) The following tables present the changes in gross carrying amount of real estate owned and accumulated depreciation for the years ended December 31, 2021 and 2020: GROSS CARRYING AMOUNT OF REAL ESTATE Gross amount at beginning of period Additions during period: Acquisitions Discretionary capital projects Other adjustments(1) Foreign currency translation fluctuations Deductions during period: Cost of real estate sold, disposed or written-down Other adjustments(2) YEAR ENDED DECEMBER 31, 2021 2020 $ 3,830,489 $ 3,856,515 120,307 386,752 — (51,363) 455,696 (119,154) (37,780) (156,934) — 157,239 66,978 10,198 234,415 (178,869) (81,572) (260,441) Gross amount at end of period $ 4,129,251 $ 3,830,489 (1) For the year ended December 31, 2020, this includes previously recorded construction in progress, not classified as owned real estate at December 31, 2019. (2) For the years ended December 31, 2021 and 2020, this includes the cost of racking associated with the facilities sold as part of the sale-leaseback transactions. ACCUMULATED DEPRECIATION Gross amount of accumulated depreciation at beginning of period Additions during period: Depreciation Foreign currency translation fluctuations Deductions during period: Amount of accumulated depreciation for real estate assets sold, disposed or written-down Other adjustments(1) YEAR ENDED DECEMBER 31, 2021 2020 $ 1,097,616 $ 1,072,013 147,134 (15,135) 131,999 (41,376) (27,749) (69,125) 123,447 8,590 132,037 (54,978) (51,456) (106,434) Gross amount of end of period $ 1,160,490 $ 1,097,616 (1) For the years ended December 31, 2021 and 2020, this includes the accumulated depreciation of racking associated with the facilities sold as part of the sale- leaseback transactions. The aggregate cost of our real estate assets for federal tax purposes at December 31, 2021 was approximately $3,910,000. ITEM 16. FORM 10-K SUMMARY. Not applicable. 138 IRON MOUNTAIN 2021 FORM 10-K Table of Contents INDEX TO EXHIBITS Part IV Certain exhibits indicated below are incorporated by reference to documents we have filed with the SEC. Each exhibit marked by a pound sign (#) is a management contract or compensatory plan. EXHIBIT 3.1 3.2 3.3 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 ITEM Certificate of Incorporation of the Company, as filed with the Secretary of State of the State of Delaware on June 26, 2014, as corrected by the Certificate of Correction of the Company filed with the Secretary of State of the State of Delaware on June 30, 2014. (Incorporated by reference to Annex B-1 to the Iron Mountain Incorporated Proxy Statement for the Special Meeting of Stockholders, filed with the SEC on December 23, 2014.) Certificate of Merger, filed by the Company, effective as of January 20, 2015. (Incorporated by reference to the Company’s Current Report on Form 8‑K dated January 21, 2015.) Bylaws of the Company. (Incorporated by reference to the Company’s Current Report on Form 8-K dated May 17,2021) Senior Indenture, dated as of September 18, 2017, among the Company, the Guarantors named therein and Wells Fargo Bank, National Association, as trustee, relating to the 4.875% Senior Notes due 2027. (Incorporated by reference to the Company’s Current Report on Form 8-K dated September 18, 2017.) Senior Indenture, dated as of November 13, 2017, among the Company, the Guarantors named therein, Wells Fargo Bank, National Association, as trustee, and Société Générale Bank & Trust, as paying agent, registrar and transfer agent, relating to the 3.875% GBP Senior Notes due 2025. (Incorporated by reference to the Company’s Current Report on Form 8-K dated November 13, 2017.) Senior Indenture, dated as of December 27, 2017, among the Company, the Guarantors named therein and Wells Fargo Bank, National Association, as trustee, relating to the 5.25% Senior Notes due 2028. (Incorporated by reference to the Company’s Current Report on Form 8-K dated December 27, 2017.) Senior Indenture, dated as of September 9, 2019, among the Company, the Subsidiary Guarantors and Wells Fargo Bank, National Association, as trustee, relating to the 4.875% Senior Notes due 2029.(Incorporated by reference to the Company's Current Report on Form 8-K dated September 9, 2019.) Senior Indenture, dated as of June 22, 2020, among the Company, the Guarantors named therein and Wells Fargo Bank, National Association, as trustee, relating to the 5.000% Senior Notes due 2028. (Incorporated by reference to the Company’s Current Report on Form 8-K dated June 22, 2020.) Senior Indenture, dated as of June 22, 2020, among the Company, the Guarantors named therein and Wells Fargo Bank, National Association, as trustee, relating to the 5.250% Senior Notes due 2030. (Incorporated by reference to the Company’s Current Report on Form 8-K dated June 22, 2020.) Senior Indenture, dated as of June 22, 2020, among the Company, the Guarantors named therein and Wells Fargo Bank, National Association, as trustee, relating to the 5.625% Senior Notes due 2032. (Incorporated by reference to the Company’s Current Report on Form 8-K dated June 22, 2020.) Senior Indenture, dated as of August 18, 2020, among the Company, the Guarantors named therein and Wells Fargo Bank, National Association, as trustee, relating to the 4.500% Senior Notes due 2031. (Incorporated by reference to the Company’s Current Report on Form 8-K dated August 18, 2020.) Senior Indenture, dated as of December 28, 2021, among the Issuer, the Company, the Subsidiary Guarantors named therein and Computershare Trust Company, N.A. as trustee, relating to the 5.00% Senior Notes due 2032. (Incorporated by reference to the Company's Current Report on Form 8-K dated December 28, 2021.) Form of Stock Certificate representing shares of Common Stock, $0.01 par value per share, of the Company. (Incorporated by reference to the Company’s Current Report on Form 8‑K dated January 21, 2015.) Description of Securities. (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2019.) 2008 Restatement of the Iron Mountain Incorporated Executive Deferred Compensation Plan. (#) (Incorporated by reference to the Company’s Annual Report on Form 10‑K for the year ended December 31, 2007.) First Amendment to 2008 Restatement of the Iron Mountain Incorporated Executive Deferred Compensation Plan. (#) (Incorporated by reference to the Company’s Annual Report on Form 10‑K for the year ended December 31, 2008.) Third Amendment to 2008 Restatement of the Iron Mountain Incorporated Executive Deferred Compensation Plan. (#) (Incorporated by reference to the Company’s Quarterly Report on Form 10‑Q for the quarter ended June 30, 2012.) Fourth Amendment to 2008 Restatement of the Iron Mountain Incorporated Executive Deferred Compensation Plan. (#) (Incorporated by reference to the Company’s Annual Report on Form 10‑K for the year ended December 31, 2012.) Iron Mountain Incorporated 1995 Stock Incentive Plan, as amended. (#) (Incorporated by reference to Iron Mountain / DE’s Current Report on Form 8‑K dated April 16, 1999.) Iron Mountain Incorporated 2002 Stock Incentive Plan. (#) (Incorporated by reference to the Company’s Annual Report on Form 10‑K for the year ended December 31, 2002.) Third Amendment to the Iron Mountain Incorporated 2002 Stock Incentive Plan. (#) (Incorporated by reference to the Company’s Current Report on Form 8-K dated June 11, 2008.) Fourth Amendment to the Iron Mountain Incorporated 2002 Stock Incentive Plan. (#) (Incorporated by reference to the Company’s Current Report on Form 8‑K dated December 10, 2008.) IRON MOUNTAIN 2021 FORM 10-K 139 Table of Contents Part IV EXHIBIT 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 10.32 10.33 10.34 ITEM Fifth Amendment to the Iron Mountain Incorporated 2002 Stock Incentive Plan. (#) (Incorporated by reference to the Company’s Current Report on Form 8‑K dated June 9, 2010.) Sixth Amendment to the Iron Mountain Incorporated 2002 Stock Incentive Plan. (#) (Incorporated by reference to the Company’s Quarterly Report on Form 10‑Q for the quarter ended June 30, 2011.) Iron Mountain Incorporated 2013 Employee Stock Purchase Plan. (#) (Incorporated by reference to Appendix A to the Company's Proxy Statement for the Annual Meeting of Stockholders, filed with the SEC on April 24, 2013.) First Amendment to the Iron Mountain Incorporated 2013 Employee Stock Purchase Plan. (#) (Incorporated by reference to the Company's Current Report on Form 8-K dated May 17, 2021.) Iron Mountain Incorporated 2014 Stock and Cash Incentive Plan. (#) (Incorporated by reference to Annex C to the Iron Mountain Incorporated Proxy Statement for the Special Meeting of Stockholders, filed with the SEC on December 23, 2014.) First Amendment to the Iron Mountain Incorporated 2014 Stock and Cash Incentive Plan. (#) (Incorporated by reference to the Company’s Current Report on Form 8-K dated May 23, 2017.) Second Amendment to the Iron Mountain Incorporated 2014 Stock and Cash Incentive Plan. (#) (Incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2018.) Third Amendment to the Iron Mountain Incorporated 2014 Stock and Cash Incentive Plan. (#) (Incorporated by reference to the Company's Current Report on Form 8-K dated May 17, 2021.) Form of Iron Mountain Incorporated Amended and Restated Non‑Qualified Stock Option Agreement. (#) (Incorporated by reference to the Company’s Annual Report on Form 10‑K for the year ended December 31, 2004.) Form of Iron Mountain Incorporated Incentive Stock Option Agreement. (#) (Incorporated by reference to the Company’s Annual Report on Form 10‑K for the year ended December 31, 2004.) Form of Iron Mountain Incorporated 1995 Stock Incentive Plan Non‑Qualified Stock Option Agreement (version 1). (#) (Incorporated by reference to the Company’s Annual Report on Form 10‑K for the year ended December 31, 2004.) Form of Iron Mountain Incorporated 1995 Stock Incentive Plan Amended and Restated Iron Mountain Non‑Qualified Stock Option Agreement. (#) (Incorporated by reference to the Company’s Annual Report on Form 10‑K for the year ended December 31, 2004.) Form of Iron Mountain Incorporated 1995 Stock Incentive Plan Incentive Stock Option Agreement. (#) (Incorporated by reference to the Company’s Annual Report on Form 10‑K for the year ended December 31, 2004.) Form of Iron Mountain Incorporated 1995 Stock Incentive Plan Non‑Qualified Stock Option Agreement (version 2). (#) (Incorporated by reference to the Company’s Annual Report on Form 10‑K for the year ended December 31, 2004.) Form of Iron Mountain Incorporated 2002 Stock Incentive Plan Stock Option Agreement (version 2B). (#) (Incorporated by reference to the Company’s Annual Report on Form 10‑K for the year ended December 31, 2013.) Form of Performance Unit Agreement pursuant to the Iron Mountain Incorporated 2002 Stock Incentive Plan (version 3). (#) (Incorporated by reference to the Company’s Quarterly Report on Form 10‑Q for the quarter ended March 31, 2013.) Form of Performance Unit Agreement pursuant to the Iron Mountain Incorporated 2002 Stock Incentive Plan (version 20). (#) (Incorporated by reference to the Company’s Quarterly Report on Form 10‑Q for the quarter ended March 31, 2013.) Form of Performance Unit Agreement pursuant to the Iron Mountain Incorporated 2002 Stock Incentive Plan (version 21). (#) (Incorporated by reference to the Company’s Current Report on Form 8‑K dated March 19, 2014.) Form of Restricted Stock Unit Agreement pursuant to the Iron Mountain Incorporated 2002 Stock Incentive Plan (version 3). (#) (Incorporated by reference to the Company’s Quarterly Report on Form 10‑Q for the quarter ended June 30, 2012.) Form of Restricted Stock Unit Agreement pursuant to the Iron Mountain Incorporated 2002 Stock Incentive Plan (version 12). (#) (Incorporated by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.) Form of Restricted Stock Unit Agreement pursuant to the Iron Mountain Incorporated 2014 Stock and Cash Incentive Plan (version 1). (#) (Incorporated by reference to the Company’s Annual Report on Form 10 K for the year ended December 31, 2014.) Form of Restricted Stock Unit Agreement pursuant to the Iron Mountain Incorporated 2014 Stock and Cash Incentive Plan (version 2). (#) (Incorporated by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.) Form of Restricted Stock Unit Agreement pursuant to the Iron Mountain Incorporated 2014 Stock and Cash Incentive Plan (version 3). (#) (Incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019.) Form of Restricted Stock Unit Agreement pursuant to the Iron Mountain Incorporated 2014 Stock and Cash Incentive Plan (version 4). (#) (Filed herewith.) Form of Stock Option Agreement pursuant to the Iron Mountain Incorporated 2014 Stock and Cash Incentive Plan (version 1). (#) (Incorporated by reference to the Company’s Annual Report on Form 10‑K for the year ended December 31, 2014.) Form of Stock Option Agreement pursuant to the Iron Mountain Incorporated 2014 Stock and Cash Incentive Plan (version 2). (#) (Incorporated by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.) 140 IRON MOUNTAIN 2021 FORM 10-K Table of Contents Part IV EXHIBIT 10.35 10.36 10.37 10.38 10.39 10.40 10.41 10.42 10.43 10.44 10.45 10.46 10.47 10.48 10.49 10.50 10.51 10.52 10.53 10.54 10.55 10.56 10.57 ITEM Form of Stock Option Agreement pursuant to the Iron Mountain Incorporated 2014 Stock and Cash Incentive Plan (version 3). (#) (Incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019.) Form of Stock Option Form of Stock Option Agreement pursuant to the Iron Mountain Incorporated 2014 Stock and Cash Incentive Plan (version 4). (#) (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2019.) Form of Stock Option Agreement pursuant to the Iron Mountain Incorporated 2014 Stock and Cash Incentive Plan (version 5). (#) (Filed herewith.) Form of Performance Unit Agreement pursuant to the Iron Mountain Incorporated 2014 Stock and Cash Incentive Plan (version 1). (#) (Incorporated by reference to the Company’s Annual Report on Form 10‑K for the year ended December 31, 2016.) Form of Performance Unit Agreement pursuant to the Iron Mountain Incorporated 2014 Stock and Cash Incentive Plan (version 2). (#) (Incorporated by reference to the Company’s Annual Report on Form 10‑K for the year ended December 31, 2016.) Form of Performance Unit Agreement pursuant to the Iron Mountain Incorporated 2014 Stock and Cash Incentive Plan (version 3). (#) (Incorporated by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.) Form of Performance Unit Agreement pursuant to the Iron Mountain Incorporated 2014 Stock and Cash Incentive Plan (version 4). (#) (Incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019). Form of Performance Unit Agreement pursuant to the Iron Mountain Incorporated 2014 Stock and Cash Incentive Plan (version 5). (#) (Filed herewith.) Change in Control Agreement, dated September 8, 2008, between the Company and Ernest W. Cloutier. (#) (Incorporated by reference to the Company’s Quarterly Report on Form 10‑Q for the quarter ended March 31, 2014.) Employment Offer Letter, dated November 30, 2012, from the Company to William L. Meaney. (#) (Incorporated by reference to the Company’s Current Report on Form 8‑K dated December 3, 2012.) Contract of Employment with Iron Mountain, between Patrick Keddy and Iron Mountain (UK) Ltd., effective as of April 2, 2015. (#) (Incorporated by reference to the Company’s Annual Report on Form 10‑K for the year ended December 31, 2015.) Ernest Cloutier Secondment Letter, dated March 27, 2017. (#) (Incorporated by reference to the Company’s Quarterly Report on Form 10‑Q for the quarter ended March 31, 2017.) Ernest Cloutier Separation Agreement, dated August 6, 2021. (#) (Incorporated by reference to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2021.) Restated Compensation Plan for Non-Employee Directors. (#) (Filed herewith.) Iron Mountain Incorporated Director Deferred Compensation Plan. (#) (Incorporated by reference to the Company’s Annual Report on Form 10‑K for the year ended December 31, 2007.) The Iron Mountain Companies Severance Plan. (#) (Incorporated by reference to the Company’s Current Report on Form 8‑K, dated March 13, 2012.) Amended and Restated Severance Plan Severance Program No. 1. (#) (Incorporated by reference to the Company’s Quarterly Report on Form 10‑Q for the quarter ended March 31, 2012.) First Amendment to Amended and Restated Severance Plan Severance Program No. 1. (#) (Incorporated by reference to the Company’s Annual Report on Form 10‑K for the year ended December 31, 2012.) Second Amendment to The Iron Mountain Companies Severance Plan Severance Program No. 1. (#) (Incorporated by reference to the Company’s Current Report on Form 8‑K dated December 19, 2014.) Severance Program No. 2. (#) (Incorporated by reference to the Company’s Current Report on Form 8‑K dated December 3, 2012.) Credit Agreement, dated as of June 27, 2011, as amended and restated as of August 21, 2017, among the Company, Iron Mountain Information Management, LLC, certain other subsidiaries of the Company party thereto, the lenders and other financial institutions party thereto, JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Administrative Agent, and JPMorgan Chase Bank, N.A., as Administrative Agent. (Incorporated by reference to the Company’s Current Report on Form 8‑K dated August 21, 2017.) First Amendment, dated as of December 12, 2017, to Credit Agreement, dated as of June 27, 2011, as amended and restated as of August 21, 2017, among the Company, Iron Mountain Information Management, LLC, certain other subsidiaries of the Company party thereto, the lenders and other financial institutions party thereto, JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Administrative Agent, and JPMorgan Chase Bank, N.A., as Administrative Agent. (Incorporated by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.) Second Amendment, dated as of March 22, 2018, to Credit Agreement, dated as of June 27, 2011, as amended and restated as of August 21, 2017, among the Company, Iron Mountain Information Management, LLC, certain other subsidiaries of the Company party thereto, the lenders and other financial institutions party thereto, JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Administrative Agent, and JPMorgan Chase Bank, N.A., as Administrative Agent. (Incorporated by reference to the Company’s Current Report on Form 8-K dated March 22, 2018.) IRON MOUNTAIN 2021 FORM 10-K 141 Table of Contents Part IV EXHIBIT 10.58 ITEM 10.59 10.61 10.60 Third Amendment and Refinancing Facility Agreement, dated as of June 4, 2018, to Credit Agreement, dated as of June 27, 2011, as amended and restated as of August 21, 2017, among the Company, Iron Mountain Information Management, LLC, certain other subsidiaries of the Company party thereto, the lenders and other financial institutions party thereto, JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Administrative Agent, and JPMorgan Chase Bank, N.A., as Administrative Agent. (Incorporated by reference to the Company’s Current Report on Form 8-K dated June 4, 2018.) Fourth Amendment, dated as of December 20, 2019, to Credit Agreement, dated as of June 27, 2011, as amended and restated as of August 21, 2017, among the Company, Iron Mountain Information Management, LLC, certain other subsidiaries of the Company party thereto, the lenders and other financial institutions party thereto, JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Administrative Agent, and JPMorgan Chase Bank, N.A., as Administrative Agent. (Incorporated by reference to the Company's Annual Report on Form 10-K for the year ended December 31, 2019.) Fifth Amendment, dated as of December 12, 2021, to Credit Agreement, dated as of June 27, 2011, as amended and restated, among the Company, Iron Mountain Information Management, LLC, certain other subsidiaries of the Company party thereto, the lenders and other financial institutions party thereto, JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Administrative Agent, and JP Morgan Chase Bank, N.A., as Administrative Agent (Incorporated by reference to the Company's Current Report on Form 8-K dated December 16, 2021.) Incremental Term Loan Activation Notice, dated as of March 22, 2018, among Iron Mountain Information Management, LLC and the lenders party thereto. (Incorporated by reference to the Company’s Current Report on Form 8-K dated March 22, 2018.) Subsidiaries of the Company. (Filed herewith.) Consent of Deloitte & Touche LLP (Iron Mountain Incorporated, Delaware). (Filed herewith.) Rule 13a‑14(a) Certification of Chief Executive Officer. (Filed herewith.) Rule 13a‑14(a) Certification of Chief Financial Officer. (Filed herewith.) Section 1350 Certification of Chief Executive Officer. (Furnished herewith.) Section 1350 Certification of Chief Financial Officer. (Furnished herewith.) 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 101.DEF 101.LAB Inline XBRL Taxonomy Label Linkbase Document. 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document. Inline XBRL Taxonomy Extension Calculation Linkbase Document. Inline XBRL Taxonomy Extension Definition Linkbase Document. 21.1 23.1 31.1 31.2 32.1 32.2 101.INS 104 Cover Page Interactive Data File. (Formatted as Inline XBRL and contained in Exhibit 101.) 142 IRON MOUNTAIN 2021 FORM 10-K Table of Contents SIGNATURES Part IV Pursuant to the requirements of Section 13 or 15(d) 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 (Principal Accounting Officer) Dated: February 24, 2022 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. NAME TITLE DATE /s/ WILLIAM L. MEANEY William L. Meaney /s/ BARRY A. HYTINEN Barry A. Hytinen /s/ DANIEL BORGES Daniel Borges President and Chief Executive Officer and Director (Principal Executive Officer) February 24, 2022 Executive Vice President and Chief Financial Officer (Principal Financial Officer) February 24, 2022 Senior Vice President, Chief Accounting Officer (Principal Accounting Officer) February 24, 2022 /s/ JENNIFER M. ALLERTON Director February 24, 2022 Jennifer M. Allerton /s/ PAMELA M. ARWAY Director February 24, 2022 Pamela M. Arway /s/ CLARKE H. BAILEY Director February 24, 2022 Clarke H. Bailey /s/ KENT P. DAUTEN Director February 24, 2022 Kent P. Dauten /s/ MONTE E. FORD Director February 24, 2022 Monte E. Ford /s/ ROBIN L. MATLOCK Director February 24, 2022 Robin L. Matlock IRON MOUNTAIN 2021 FORM 10-K 143 Table of Contents Part IV NAME TITLE DATE /s/ WENDY J. MURDOCK Director February 24, 2022 Wendy J. Murdock /s/ WALTER C. RAKOWICH Director February 24, 2022 Walter. C. Rakowich /s/ DOYLE R. SIMONS Director February 24, 2022 Doyle R. Simons /s/ ALFRED J. VERRECCHIA Director February 24, 2022 Alfred J. Verrecchia 144 IRON MOUNTAIN 2021 FORM 10-K CORPORATE DIRECTORS AND OFFICERS (As of 03/01/22) Wendy Murdock(1),(4) Retired Executive MasterCard Worldwide New York, NY Walter C. Rakowich(1),(3),(4) Retired Executive Former CEO of Prologis San Francisco, CA Doyle R. Simons(2),(4) Retired Executive Former CEO of Weyerhaeuser Seattle, WA DIRECTORS Alfred J. Verrecchia(3),(7) Chairperson of the Board of Directors Iron Mountain Incorporated Boston, MA Jennifer Allerton(1),(5),(6) Retired Executive Hoffmann La Roche Ltd Basel, Switzerland Pamela M. Arway(2),(3) Retired Executive American Express Company,Inc. New York, NY Clarke H. Bailey(1),(3),(5) Retired Executive EDCI Holdings, Inc. New York, NY EXECUTIVE OFFICERS William L. Meaney President and Chief Executive Officer Deirdre Evens Executive Vice President and General Manager, Asset Lifecycle Management Edward E. Greene Executive Vice President, Chief Human Resources Officer Barry A. Hytinen Executive Vice President and Chief Financial Officer Kent P. Dauten(1),(3),(4) Chairman Keystone Capital, Inc. Deerfield, IL Monte E. Ford(2),(5),(6) Principal Partner CIO Strategy Exchange Westlake, TX Robin L. Matlock(2),(5),(6) Retired Executive VMware, Inc. Palo Alto, CA William L. Meaney President and Chief Executive Officer Iron Mountain Incorporated Boston, MA Mark Kidd Executive Vice President and General Manager, Data Centers Deborah Marson Executive Vice President, General Counsel and Secretary Gregory McIntosh Executive Vice President and General Manager, Global Records and Information Management John Tomovcsik Executive Vice President and Chief Operating Officer (1) Member of Audit Committee (Mr. Rakowich is Chairperson) (2) Member of the Compensation Committee (Ms. Arway is Chairperson) (3) Member of the Nominating and Governance Committee (Mr. Verrecchia is Chairperson) (4) Member of the Finance Committee (Mr. Dauten is Chairperson) (5) Member of the Risk and Safety Committee (Mr. Bailey is Chairperson) (6) Member of the Technology Committee (7) Independent Chairperson of the Board CORPORATE INFORMATION STOCKHOLDER INFORMATION Transfer Agent and Registrar Computershare 877/897-6892 201/680-6578 (outside the United States, US territories & Canada) 800/231-5469 (hearing impaired—TDD phone) shrrelations@cpushareownerservices.com www.computershare.com/investor Address stockholder inquiries and send certificates for transfer and address changes to: Iron Mountain Incorporated c/o Computershare Investor Services P.O. Box 505000, Louisville, KY 40233-5000 Overnight delivery Computershare Investor Services 462 South 4th Street, Suite 1600 Louisville, KY 40202 Copies of the Annual Report on Form 10-K are available upon request by contacting the company at the address below, attention: Investor Relations Corporate Headquarters Iron Mountain Incorporated One Federal Street Boston, MA 02110 800/935-6966 www.ironmountain.com Common Stock Data Traded: NYSE Symbol: IRM Beneficial Stockholders: 343,643 as of March 14, 2022 Investor Relations Gillian Tiltman Senior Vice President, Investor Relations Iron Mountain Incorporated One Federal Street Boston, MA 02110 617-286-4881 Annual Meeting Date Iron Mountain Incorporated will conduct its annual meeting of stockholders on Tuesday May 10, 2022, 9:00am ET via live audio webcast, accessed by visiting https://www.virtualshareholdermeeting.com/IRM2022 Independent Registered Public Accounting Firm Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 OPERATIONAL LOCATIONS (As of 12/31/21) Asia Pacific Australia China Bahrain Egypt India Indonesia Malaysia Europe Armenia Austria Belarus Belgium Bulgaria Croatia Cyprus Germany Greece Hungary Jordan Kazakhstan Latvia Lesotho Lithuania Romania Russia Scotland Serbia Slovakia South Africa Spain Sweden New Zealand Czech Republic Morocco Switzerland Philippines Saudi Arabia Singapore South Korea Thailand Vietnam Denmark England Estonia Eswatini Finland France Netherlands Northern Ireland Turkey Ukraine United Arab Emirates Norway Oman Poland Republic of Ireland Latin America Argentina Brazil Chile Colombia Mexico Peru North America Canada United States IRM STOCK PERFORMANCE COMPARISON OF 60 MONTH CUMULATIVE TOTAL RETURN AMONG IRON MOUNTAIN, THE MSCI REIT INDEX, THE S&P 500 AND THE RUSSELL 1000 140 120 100 ) % ( n r u t e R l a t o T 80 60 40 20 0 -20 -40 IRM RMZ S&P 500 Russell 1000 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 Note: Fiscal year end December 31, 2021 Source: FactSet This graph compares the change in the cumulative total return on our common stock to the cumulative total returns of the S&P 500 Index, the Russell 1000 Index and the MSCI REIT Index for the period from December 31, 2016, through December 31, 2021. This comparison assumes an investment of $100 on December 31, 2016, and the reinvestments of any dividends. 

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