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ITEM 1.	Business

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•	Equinix formed the Joint Venture with GIC to develop and operate xScale data centers in Europe.

•	Data center expansions included five new IBX sites in the following metros: Seoul, Singapore, Sydney, Tokyo and Helsinki, with an additional new market entry announced in Muscat, Oman.

•	Equinix closed transactions that will broaden its Europe and Latin America markets:

•	One data center in Amsterdam acquired from Switch Datacenters (closed in April 2019), bringing Equinix's Amsterdam footprint to a total of eight Amsterdam facilities to serve European markets.

•	Three data centers in Mexico acquired from Axtel S.A.B. de C.V. on January 8, 2020, bringing Equinix’s Latin America footprint to ten data centers.

•

Equinix announced an agreement to acquire leading bare metal automation company Packet Host, Inc. on January 14, 2020. After the closing of this acquisition, which is expected in 2020, bare metal as a service will allow enterprises and services providers to avoid the capital expenditures and operational requirements of owning hardware by accessing bare metal servers on demand in Equinix’s global data centers.

•	Digital business transformation: Real-time interactions between people, things, locations, clouds and data require proximity and direct connections.

•	Urbanization: This is creating large, global population centers which require companies to locate digital services close to users to deliver great user experiences. These same concentrations of people provide an economy of scale which makes distributing applications, data, content and networking to serve these locations cost effective.

•	Cybersecurity: A cybersecurity breach is one of the most serious risks facing companies today, and many of the most serious breaches actually occur via a penetration of a company’s business partners’ networks. To protect against this, businesses need to distribute their security controls out to the edge where most traffic exchange is happening.

•	Data compliance: To meet new regulations, companies need to deploy data storage, analytics and clouds within the same jurisdiction, and then replicate this across multiple global locations.

•	Business ecosystems: Digital trade flows involve an increasing variety of customers, partners and employees. To enable this, companies deploy a digital presence in close physical proximity to an industry exchange point and then connect to it directly. In the aggregate, these form a business ecosystem. These ecosystems are expanding in depth and number.

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IBX Data Centers - The more than 200 IBX vendor-neutral colocation data centers worldwide provide our customers with secure, reliable and robust environments that are necessary to aggregate and distribute information and connect digital and business ecosystems globally. IBX data centers provide access to vital ecosystems where enterprises, network, cloud and SaaS providers, and business partners directly and securely interconnect to each other.

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xScale Data Centers - xScale data centers are designed to serve the unique core workload deployment needs of a targeted group of hyperscale companies, which include the world's largest cloud service providers. With xScale data centers, hyperscale customers add to their core hyperscale data center deployments and existing customer access points at Equinix, allowing streamlined expansion with a single global vendor.

•	Cross Connects - Provide a point-to-point cable link between two customers in the same IBX data center. They deliver fast, convenient, affordable and highly reliable connectivity and data exchange with business partners and service providers within the Equinix ecosystem.

•

Equinix Cloud Exchange Fabric™ ("ECX Fabric™") - Directly, securely and dynamically connects distributed infrastructure and ecosystems across Equinix data centers globally using software-defined interconnection. Customers can establish data center-to-data center network connections on demand between any two ECX Fabric locations within a metro or globally and move information within a dense digital and business ecosystem.

•

Equinix Internet Exchange™ - Enables networks, content providers and large enterprises to exchange internet traffic through the largest global peering solution. Service providers can aggregate traffic to multiple counterparties, called peers, on one physical port and handle multiple small peers while moving high-traffic peers to private interconnections. This reduces latency for end-users when accessing content and applications.

•	Network Edge - Allows customers to modernize networks quickly, by deploying network functions virtualization ("NFV") from multiple vendors across Equinix metros. Companies can select, deploy and connect virtual network services at the edge quickly, with no additional hardware requirements.

•	Equinix SmartKey™ - Helps customers simplify data protection across any cloud architecture via a global SaaS-based, hardware security module management and cryptography service that provides on-premises and hybrid multicloud cloud encryption key management.

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Bare Metal - Equinix’s announced acquisition of Packet on January 14, 2020, once completed, and our own organic bare metal service also in development, are expected to help enterprises more seamlessly deploy hybrid multicloud architectures on Platform Equinix. Enterprises and services providers will be able to avoid the capital expenditures and operational requirements of owning hardware by accessing bare metal servers on demand in Equinix’s global data centers.

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•	Equinix Infrastructure Services - Combines Equinix data center expertise with the skills and scale of certified technology partners worldwide. Our colocation expertise helps customers achieve an efficient data center deployment design that optimizes space and enables easy service access.

•	Equinix Professional Services - Helps enterprises and service providers design and deploy IT solutions. Our global teams of network transformation, hybrid multicloud and digital edge solution experts help companies design and manage technology solutions which are deployed on our global platform.

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ITEM 1A.	Risk Factors

•	the possible disruption of our ongoing business and diversion of management's attention by acquisition, transition and integration activities, particularly when multiple acquisitions and integrations are occurring at the same time;

•	our potential inability to successfully pursue or realize some or all of the anticipated revenue opportunities associated with an acquisition or investment;

•	the possibility that we may not be able to successfully integrate acquired businesses, or businesses in which we invest, or achieve anticipated operating efficiencies or cost savings;

•	the possibility that announced acquisitions may not be completed, due to failure to satisfy the conditions to closing as a result of:

◦	an injunction, law or order that makes unlawful the consummation of the acquisition;

◦	inaccuracy or breach of the representations and warranties of, or the non-compliance with covenants by, either party;

◦	the nonreceipt of closing documents; or

◦	for other reasons;

•	the possibility that there could be a delay in the completion of an acquisition, which could, among other things, result in additional transaction costs, loss of revenue or other negative effects resulting from uncertainty about completion of the respective acquisition;

•	the dilution of our existing stockholders as a result of our issuing stock as consideration in a transaction or selling stock in order to fund the transaction;

•	the possibility of customer dissatisfaction if we are unable to achieve levels of quality and stability on par with past practices;

•	the possibility that we will be unable to retain relationships with key customers, landlords and/or suppliers of the acquired businesses, some of which may terminate their contracts with the acquired business as a result of the acquisition or which may attempt to negotiate changes in their current or future business relationships with us;

•	the possibility that we could lose key employees from the acquired businesses before integrating them;

•	the possibility that we may be unable to integrate or migrate IT systems, which could create a risk of errors or performance problems and could affect our ability to meet customer service level obligations;

•	the potential deterioration in our ability to access credit markets due to increased leverage;

•	the possibility that our customers may not accept either the existing equipment infrastructure or the "look-and-feel" of a new or different IBX data center;

•	the possibility that additional capital expenditures may be required or that transaction expenses associated with acquisitions may be higher than anticipated;

•	the possibility that required financing to fund an acquisition may not be available on acceptable terms or at all;

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the possibility that we may be unable to obtain required approvals from governmental authorities under antitrust and competition laws on a timely basis or at all, which could, among other things, delay or prevent us from completing an acquisition, limit our ability to realize the expected financial or strategic benefits of an acquisition or have other adverse effects on our current business and operations;

•	the possible loss or reduction in value of acquired businesses;

•	the possibility that future acquisitions may present new complexities in deal structure, related complex accounting and coordination with new partners, particularly in light of our desire to maintain our qualification for taxation as a REIT;

•	the possibility that we may not be able to prepare and issue our financial statements and other public filings in a timely and accurate manner, and/or maintain an effective control environment, due to the strain on the finance organization when multiple acquisitions and integrations are occurring at the same time;

•	the possibility that future acquisitions may trigger property tax reassessments resulting in a substantial increase to our property taxes beyond that which we anticipated;

•	the possibility that future acquisitions may be in geographies and regulatory environments to which we are unaccustomed and we may become subject to complex requirements and risks with which we have limited experience;

•	the possibility that carriers may find it cost-prohibitive or impractical to bring fiber and networks into a new IBX data center;

•	the possibility of litigation or other claims in connection with, or as a result of, an acquisition, including claims from terminated employees, customers, former stockholders or other third parties;

•	the possibility that asset divestments may be required in order to obtain regulatory clearance for a transaction;

•	the possibility of pre-existing undisclosed liabilities, including, but not limited to, lease or landlord related liability, environmental liability or asbestos liability, for which insurance coverage may be insufficient or unavailable, or other issues not discovered in the diligence process; and

•	the possibility that we receive limited or incorrect information about the acquired business in the diligence process. For example, we sometimes do not receive all of the customer contracts associated with our acquisitions in the diligence process, which affects our visibility into customer termination rights and could expose us to additional liabilities.

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•	we may not have the right to exercise sole decision-making authority regarding the properties, partnership, joint venture or other entity;

•	if our partners become bankrupt or fail to fund their share of required capital contributions, we may choose to or be required to contribute such capital;

•	our partners may have economic, tax or other business interests or goals which are inconsistent with our business interests or goals, and may be in a position to take actions contrary to our policies or objectives;

•	our joint venture 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 Equinix to maintain its qualification for taxation as a REIT, or purchase the partner's interests or assets at an above-market price;

•	our joint venture partners may take actions unrelated to our business agreement but which reflect poorly on Equinix because of our joint venture;

•	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 the company to pay an amount greater than its investment in the joint venture.

•	require us to dedicate a substantial portion of our cash flow from operations to make interest and principal payments on our debt and in respect of other off-balance sheet arrangements, reducing the availability of our cash flow to fund future capital expenditures, working capital, execution of our expansion strategy and other general corporate requirements;

•	increase the likelihood of negative outlook from our credit rating agencies, or of a downgrade to our current rating;

•	make it more difficult for us to satisfy our obligations under our various debt instruments;

•	increase our cost of borrowing and even limit our ability to access additional debt to fund future growth;

•	increase our vulnerability to general adverse economic and industry conditions and adverse changes in governmental regulations;

•	limit our flexibility in planning for, or reacting to, changes in our business and industry, which may place us at a competitive disadvantage compared with our competitors;

•	limit our operating flexibility through covenants with which we must comply;

•	limit our ability to borrow additional funds, even when necessary to maintain adequate liquidity, which would also limit our ability to further expand our business; and

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•	make us more vulnerable to increases in interest rates because of the variable interest rates on some of our borrowings to the extent we have not entirely hedged such variable rate debt.

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•	the costs of customizing IBX data centers for foreign countries;

•	protectionist laws and business practices favoring local competition;

•	greater difficulty or delay in accounts receivable collection;

•	difficulties in staffing and managing foreign operations, including negotiating with foreign labor unions or workers' councils;

•	difficulties in managing across cultures and in foreign languages;

•	political and economic instability;

•	fluctuations in currency exchange rates;

•	difficulties in repatriating funds from certain countries;

•	our ability to obtain, transfer or maintain licenses required by governmental entities with respect to our business;

•	unexpected changes in regulatory, tax and political environments such as the United Kingdom's withdrawal from the European Union ("Brexit");

•	our ability to secure and maintain the necessary physical and telecommunications infrastructure;

•	compliance with anti-bribery and corruption laws;

•	compliance with economic and trade sanctions enforced by the Office of Foreign Assets Control of the U.S. Department of Treasury; and

•	compliance with evolving governmental regulation with which we have little experience.

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•	our operating results or forecasts;

•	new issuances of equity, debt or convertible debt by us, including issuances through our ATM Program;

•	increases in market interest rates and changes in other general market and economic conditions, including inflationary concerns;

•	changes to our capital allocation, tax planning or business strategy;

•	our qualification for taxation as a REIT and our declaration of distributions to our stockholders;

•	changes in U.S. or foreign tax laws;

•	changes in management or key personnel;

•	developments in our relationships with customers;

•	announcements by our customers or competitors;

•	changes in regulatory policy or interpretation;

•	governmental investigations;

•	changes in the ratings of our debt or stock by rating agencies or securities analysts;

•	our purchase or development of real estate and/or additional IBX data centers;

•	our acquisitions of complementary businesses; or

•	the operational performance of our IBX data centers.

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•	human error;

•	equipment failure;

•	physical, electronic and cyber security breaches;

•	fire, earthquake, hurricane, flood, tornado and other natural disasters;

•	extreme temperatures;

•	water damage;

•	fiber cuts;

•	power loss;

•	terrorist acts;

•	sabotage and vandalism;

•	global pandemics or health emergencies, such as the coronavirus; and

•	failure of business partners who provide our resale products.

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•	construction delays;

•	lack of availability and delays for data center equipment, including items such as generators and switchgear;

•	unexpected budget changes;

•	increased prices for building supplies, raw materials and data center equipment;

•	labor availability, labor disputes and work stoppages with contractors, subcontractors and other third parties;

•	unanticipated environmental issues and geological problems;

•	delays related to permitting from public agencies and utility companies; and

•	delays in site readiness leading to our failure to meet commitments made to customers planning to expand into a new build.

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•	fluctuations of foreign currencies in the markets in which we operate;

•	the timing and magnitude of depreciation and interest expense or other expenses related to the acquisition, purchase or construction of additional IBX data centers or the upgrade of existing IBX data centers;

•	demand for space, power and solutions at our IBX data centers;

•	changes in general economic conditions, such as an economic downturn, or specific market conditions in the telecommunications and internet industries, both of which may have an impact on our customer base;

•	charges to earnings resulting from past acquisitions due to, among other things, impairment of goodwill or intangible assets, reduction in the useful lives of intangible assets acquired, identification of additional assumed contingent liabilities or revised estimates to restructure an acquired company's operations;

•	the duration of the sales cycle for our offerings and our ability to ramp our newly-hired sales persons to full productivity within the time period we have forecasted;

•	additions and changes in product offerings and our ability to ramp up and integrate new products within the time period we have forecasted;

•	restructuring charges or reversals of restructuring charges, which may be necessary due to revised sublease assumptions, changes in strategy or otherwise;

•	acquisitions or dispositions we may make;

•	the financial condition and credit risk of our customers;

•	the provision of customer discounts and credits;

•	the mix of current and proposed products and offerings and the gross margins associated with our products and offerings;

•	the timing required for new and future IBX data centers to open or become fully utilized;

•	competition in the markets in which we operate;

•	conditions related to international operations;

•	increasing repair and maintenance expenses in connection with aging IBX data centers;

•	lack of available capacity in our existing IBX data centers to generate new revenue or delays in opening new or acquired IBX data centers that delay our ability to generate new revenue in markets which have otherwise reached capacity;

•	changes in rent expense as we amend our IBX data center leases in connection with extending their lease terms when their initial lease term expiration dates approach or changes in shared operating costs in connection with our leases, which are commonly referred to as common area maintenance expenses;

•	the timing and magnitude of other operating expenses, including taxes, expenses related to the expansion of sales, marketing, operations and acquisitions, if any, of complementary businesses and assets;

•	the cost and availability of adequate public utilities, including electricity;

•	changes in employee stock-based compensation;

•	overall inflation;

•	increasing interest expense due to any increases in interest rates and/or potential additional debt financings;

•	changes in our tax planning strategies or failure to realize anticipated benefits from such strategies;

•	changes in income tax benefit or expense; and

•	changes in or new GAAP as periodically released by the Financial Accounting Standards Board ("FASB").

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•	ownership limitations and transfer restrictions relating to our stock that are intended to facilitate our compliance with certain REIT rules relating to share ownership;

•	authorization for the issuance of "blank check" preferred stock;

•	the prohibition of cumulative voting in the election of directors;

•	limits on the persons who may call special meetings of stockholders;

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•	limits on stockholder action by written consent; and

•	advance notice requirements for nominations to the Board of Directors or for proposing matters that can be acted on by stockholders at stockholder meetings.

•	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.

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ITEM 1B.	Unresolved Staff Comments

ITEM 2.	Properties

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(1)	"●" denotes locations with one or more data centers.

(2)	Owned sites include IBX data centers subject to long-term ground leases.

(1)	Excludes three data centers held by unconsolidated entities (i.e. two xScale data centers and the JK1 IBX data center) and three Mexico data centers acquired in January 2020.

(2)	Cabinets represent a specific amount of space within an IBX data center. Customers can combine and use multiple adjacent cabinets within an IBX data center, depending on their space requirements.

(3)	The cabinet utilization rate represents the percentage of cabinet space billed versus total cabinet capacity, taking into consideration power limitations.

(4)	MRR per cabinet represents average monthly recurring revenue recognized divided by the average number of cabinets billing during the fourth quarter of the year. Americas MRR per cabinet excludes Brazil, Colombia and Infomart non-IBX tenant income and Asia-Pacific MRR per Cabinet excludes Bit-isle MIS.

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(1)	Capital expenditures are approximate and may change based on final construction details.

ITEM 3.	Legal Proceedings

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ITEM 4.	Mine Safety Disclosure

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ITEM 5.	Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

•	the S&P 500 Index;

•	the NASDAQ Composite Index; and

•	the FTSE NAREIT All REITs Index.

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ITEM 6.	Selected Financial Data

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ITEM 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations

•	Overview

•	Results of Operations

•	Non-GAAP Financial Measures

•	Liquidity and Capital Resources

•	Contractual Obligations and Off-Balance-Sheet Arrangements

•	Critical Accounting Policies and Estimates

•	Recent Accounting Pronouncements

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•	premium data center colocation;

•	interconnection and data exchange solutions;

•	edge services for deploying networking, security and hardware; and

•	remote expert support and professional services.

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•	In March, we issued and sold 2,985,575 shares of common stock for net proceeds of approximately $1,213.4 million, after underwriting discounts, commissions and offering expenses. See Note 12 within the Consolidated Financial Statements.

•	In April, we completed the acquisition of Switch Datacenters' AMS1 data center business in Amsterdam, Netherlands (the "AM11 data center"), for a cash purchase price of approximately €30.6 million, or approximately $34.3 million. See Note 3 within the Consolidated Financial Statements.

•	In October, we closed our Joint Venture with GIC to develop and operate xScale data centers in Europe. Upon closing, we sold certain data center facilities in Europe to the Joint Venture. See Note 5 and Note 6 within the Consolidated Financial Statements.

•	In November, we issued $2.8 billion in Senior Notes due 2024, 2026 and 2029 with a weighted average interest rate of 2.93% and redeemed $1.9 billion in Senior Notes due 2022, 2023 and 2025 with a weighted average interest rate of 5.47% in November and December 2019. See Note 11 within the Consolidated Financial Statements.

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•	By the end of December, we had sold 903,555 shares of our common stock for approximately $447.7 million in proceeds, net of payment of commissions and other offering expenses, under our current ATM program. See Note 12 within the Consolidated Financial Statements.

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•	approximately $10.6 million of incremental revenues from the Infomart Dallas acquisition;

•	$52.6 million of incremental revenues generated from our recently-opened IBX data centers or IBX data center expansions; and

•	an increase in orders from both our existing customers and new customers during the period.

•	approximately $76.0 million of incremental revenues generated from our recently-opened IBX data centers or IBX data center expansions;

•	an increase in orders from both our existing customers and new customers during the period; and

•	a net increase of $110.6 million of realized cash flow hedge gains from foreign currency forward contracts.

•	approximately $16.6 million of incremental revenues from the Metronode acquisition;

•	approximately $35.4 million of incremental revenues generated from our recently-opened IBX data centers or IBX data center expansions; and

•	an increase in orders from both our existing customers and new customers during the period.

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•	$11.3 million of higher utilities costs driven by IBX data center expansions, increased utility usage and utility price increases;

•	$10.0 million of higher bandwidth costs in support of our business growth;

•	approximately $9.9 million of incremental cost of revenues from the Infomart Dallas acquisition;

•	$8.6 million of higher compensation costs, including salaries, bonuses, and stock-based compensation; and

•	$7.2 million of higher depreciation expense primarily due to IBX expansion activity.

•	$8.9 million of reduced property tax expenses, primarily due to accrual releases based on tax appeal settlements; and

•	$6.9 million of reduced office expenses.

•	a net increase of $40.6 million of realized cash flow hedge losses from foreign currency forward contracts;

•	$30.5 million of higher utilities costs driven by increased utility usage to support IBX data center expansions and utility price increases, primarily in Germany, the Netherlands and the United Kingdom;

•	$21.3 million of higher costs from increased equipment resale activities, primarily in Germany and the United Kingdom;

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•	$7.9 million of higher depreciation expenses driven by IBX data center expansions in London, Frankfurt and Amsterdam; and

•	$7.2 million of higher compensation costs, including salaries, bonuses, stock-based compensation and headcount growth.

•	$5.9 million of reduced outside services consulting expenses.

•	$45.3 million of higher rent and facility costs and utilities costs, primarily driven by expansions and higher utility usage in Hong Kong, Singapore, Australia and Japan;

•	$20.5 million of higher depreciation expense, primarily from IBX data center expansions in Singapore, Japan, Australia and Hong Kong;

•	approximately $11.2 million of incremental cost of revenues from the Metronode acquisition; and

•	$4.3 million of higher outside services consulting expenses.

•	$12.8 million of reduced costs due to lower equipment resale activities in the current period as compared to the prior year.

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•	$7.4 million of higher compensation costs, including sales compensation, salaries and stock-based compensation and headcount growth; and

•	$3.7 million of higher travel and entertainment expenses.

•	a net increase of $7.2 million of realized cash flow hedge losses from foreign currency forward contracts; and

•	$5.6 million increase in compensation costs, including sales compensation, salaries and stock-based compensation and headcount growth.

•	$6.2 million of reduced amortization expense driven by certain intangibles being fully amortized in the current year.

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•	$51.1 million of higher compensation costs, including salaries, bonuses, stock-based compensation, and headcount growth;

•	$22.3 million of higher depreciation expense associated with the implementation of certain systems to support the integration and growth of our business; and

•	$10.7 million of higher consulting expenses in support of our business growth.

•	a net increase of $8.8 million of realized cash flow hedge losses from foreign currency forward contracts; and

•	$3.9 million of higher compensation costs, including salaries, bonuses, stock-based compensation and headcount growth.

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•	$3.8 million of higher compensation costs, including salaries, bonuses, stock-based compensation and headcount growth.

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•	$17.1 million of loss on debt extinguishment as a result of amendments to leases impacting the related financing obligations;

•	$19.5 million of loss on debt extinguishment from the settlement of financing obligations as a result of the Infomart Dallas acquisition;

•	$12.6 million of loss on debt extinguishment as a result of the settlement of financing obligations for properties purchased; and

•	$2.2 million of loss on debt extinguishment as a result of the redemption of the Japanese Yen Term Loan.

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•	approximately $9,029.2 million of principal from our senior notes;

•	approximately $1,506.1 million from our finance lease liabilities; and

•	$1,371.9 million of principal from our loans payable and mortgage.

•	issued $2,800.0 million in Senior Notes due 2024, 2026 and 2029;

•	redeemed $1,906.3 million of Senior Notes due 2022, 2023 and 2025;

•	repaid $300.0 million of 5.0% Infomart Senior Notes according to their repayment terms;

•	issued and sold 2,985,575 shares of common stock in a public equity offering and received net proceeds of approximately $1,213.4 million, net of underwriting discounts, commissions and offering expenses; and

•	issued and sold 903,555 shares of common stock under our ATM Program, for proceeds of approximately $447.5 million, net of payment of commissions to sales agents and other offering expenses.

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•	the issuance of $2,800.0 million in Senior Notes due 2024, 2026 and 2029;

•	the sale and issuance of 2,985,575 shares of common stock in a public equity offering and receipt of net proceeds of approximately $1,213.4 million, net of underwriting discounts, commissions and offering expenses;

•	the sale of 903,555 shares under our ATM Program, for net proceeds of $447.5 million; and

•	proceeds from employee awards of $52.0 million.

•	the redemption of $1,906.3 million in Senior Notes due 2022, 2023 and 2025;

•	the repayment of $300.0 million of 5.0% Infomart Senior Notes according to the repayment terms;

•	dividend distributions of $836.2 million;

•	repayments of capital lease and other financing obligations totaling $126.5 million;

•	repayments of mortgage and loans payable totaling $73.2 million;

•	payments of debt extinguishment costs of $43.3 million, primarily related to redemption premium paid related to the redemption of Senior Notes due 2022, 2023 and 2025; and

•	payments of debt issuance costs of $23.3 million.

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•	the issuance of €750.0 million 2.875% Euro Senior Notes due 2024, or approximately $929.9 million in U.S. dollars, at the exchange rate in effect on March 14, 2018;

•	borrowing of the JPY Term Loan of ¥47.5 billion, or approximately $424.7 million at the exchange rate effective on July 31, 2018;

•	the sale of 930,934 shares under our ATM Program, for net proceeds of $388.2 million; and

•	proceeds from employee awards of $50.1 million.

•	dividend distributions of $738.6 million;

•	repayments of capital lease and other financing obligations of $103.8 million;

•	repayments of mortgage and loans payable of $447.5 million, primarily related to the prepayment of the remaining principal of our existing Japanese Yen Term Loan;

•	payments of debt extinguishment costs of $20.6 million; and

•	payments of debt issuance costs of $12.2 million.

(1)	Represents principal of senior notes, term loans and other loans payable, as well as premium on mortgage payable.

(2)	Represents interest on mortgage payable, senior notes, term loan facilities and other loans payable based on their approximate interest rates as of December 31, 2019, as well as the credit facility fee for the revolving credit facility.

(3)	Represents lease payments under finance and operating lease arrangements, including renewal options that are certain to be exercised.

(4)	Represents unaccrued contractual commitments. Other contractual commitments are described below.

(5)	Represents liability, net of future accretion expense.

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•	Accounting for income taxes;

•	Accounting for business combinations;

•	Accounting for impairment of goodwill;

•	Accounting for property, plant and equipment; and

•	Accounting for leases.

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ITEM 7A.	Quantitative and Qualitative Disclosures About Market Risk

(1)	The carrying value is gross of debt issuance cost, debt discount and debt premium.

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•	a cash flow hedging program to hedge the forecasted revenues and expenses in our EMEA region;

•	a balance sheet hedging program to hedge the remeasurement of monetary assets and liabilities denominated in foreign currencies; and

•	a net investment hedging program to hedge the long term investments in our foreign subsidiaries.

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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

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ITEM 9B.	Other Information

ITEM 10.	Directors, Executive Officers and Corporate Governance

ITEM 11.	Executive Compensation

ITEM 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

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ITEM 13.	Certain Relationships and Related Transactions, and Director Independence

ITEM 14.	Principal Accountant Fees and Services

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ITEM 15.	Exhibits, Financial Statement Schedules

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(b)	Exhibits.

(c)	Financial Statement Schedule.

ITEM 16.	Form 10-K Summary

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Nature of Business

Equinix, Inc. ("Equinix" or the "Company") was incorporated in Delaware on June 22, 1998. Equinix provides colocation space and related offerings. Global enterprises, content providers, financial companies and network service providers rely upon Equinix's insight and expertise to safehouse and connect their most valued information assets. The Company operates International Business Exchange^TM ("IBX^®") data centers, or IBX data centers, across the Americas; Europe, Middle East and Africa ("EMEA") and Asia-Pacific geographic regions where customers directly interconnect with a network ecosystem of partners and customers. More than 1,800 network service providers offer access to the world's internet routes inside the Company's IBX data centers. This access to internet routes provides Equinix customers improved reliability and streamlined connectivity while significantly reducing costs by reaching a critical mass of networks within a centralized physical location. As of December 31, 2019, the Company operated 204 IBX data centers in 53 markets across five continents.

The Company has been operating as a real estate investment trust for federal income tax purposes ("REIT") effective January 1, 2015. See "Income Taxes" in Note 14 below for additional information.

Basis of Presentation, Consolidation and Foreign Currency

The accompanying consolidated financial statements include the accounts of Equinix and its subsidiaries, including the acquisitions of:

•	Switch Datacenters' AMS1 data center business in Amsterdam, Netherlands from April 18, 2019;

•	Metronode from the Ontario Teachers' Pension Plan Board (the "Metronode Acquisition") from April 18, 2018;

•	Infomart Dallas, including its operations and tenants, from ASB Real Estate Investments (the "Infomart Dallas Acquisition") from April 2, 2018;

•	Itconic, a data center business in Spain and Portugal from October 9, 2017;

•	Zenium's data center business in Istanbul from October 6, 2017;

•	certain colocation business from Verizon Communications Inc. ("Verizon") consisting of 29 data center buildings located in the United States ("U.S."), Brazil and Colombia (the "Verizon Data Center Acquisition") from May 1, 2017;

•	IO UK's data center operating business in Slough, United Kingdom ("IO Acquisition") from February 3, 2017.

All intercompany accounts and transactions have been eliminated in consolidation. Foreign exchange gains or losses resulting from foreign currency transactions, including intercompany foreign currency transactions, that are anticipated to be repaid within the foreseeable future, are reported within other income (expense) on the Company's accompanying consolidated statements of operations. For additional information on the impact of foreign currencies to the Company's consolidated financial statements, see "Accumulated Other Comprehensive Loss" in Note 12.

Use of Estimates

The preparation of consolidated financial statements in conformity with the accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to the allowance for doubtful accounts, fair values of financial instruments, intangible assets and goodwill, and assets acquired and liabilities assumed from acquisitions, useful lives of intangible assets and property, plant and equipment, leases, asset retirement obligations, other accruals, and income taxes. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable.

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Cash, Cash Equivalents and Short-Term Investments

The Company considers all highly liquid instruments with an original maturity from the date of purchase of 90 days or less to be cash equivalents. Cash equivalents consist of money market mutual funds and certificates of deposit with original maturities up to 90 days. Short-term investments generally consist of certificates of deposit with original maturities of between 90 days and 1 year. Publicly traded equity securities are measured at fair value with changes in the fair values recognized within other income (expense) in the Company's consolidated statements of operations. The Company reviews its investment portfolio quarterly to determine if any securities may be other-than-temporarily impaired due to increased credit risk, changes in industry or sector of a certain instrument or ratings downgrades.

Equity Method Investments

The Company enters into joint venture or partnership arrangements to invest in certain entities for business development objectives. At the inception of these arrangements, the Company assesses its interests with other entities to determine whether any of such entities meet the definition of a variable interest entity ("VIE"). A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support, or (ii) has equity investors who lack the characteristics of a controlling financial interest. The Company is required to consolidate the assets and liabilities of VIEs when it is deemed to be the primary beneficiary. The primary beneficiary of a VIE is the entity that meets both of the following criteria: (i) has the power to make decisions that most significantly affect the economic performance of the VIE; and (ii) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. As of December 31, 2019, the Company concluded that it did not have any significant investments in entities that are deemed to be VIEs.

The Company’s investments in joint ventures and partnerships are generally accounted for under the equity method of accounting, as the Company concluded it does not have control, but has the ability to exercise significant influence over the investees. Equity method investments are initially measured at cost, or at fair value for a retained investment in the common stock of an investee in a deconsolidation transaction. Equity investments are subsequently adjusted for cash contributions, distributions and the Company's share of the income and losses of the investees. The Company records its equity method investments in other assets in the consolidated balance sheet. The Company's proportionate share of the income or loss from its equity method investments are recorded in other income in the consolidated statement of operations. The Company reviews its investments periodically to determine if any investments may be impaired considering both qualitative and quantitative factors that may have a significant impact on the investees' fair value. The Company did not record any impairment charges related to its equity method investments for the years ended December 31, 2019, 2018 and 2017.

Non-marketable Equity Investments

The Company also has investments in non-marketable equity securities, where the Company does not have the ability to exercise significant influence over the investees. The Company elected the measurement alternative under which the securities are measured at cost minus impairment, if any, and adjusted for changes resulting from qualifying observable price changes. The Company records non-marketable equity investment in other assets in the consolidated balance sheet. The Company reviews its non-marketable equity investments quarterly to determine if any investments may be impaired considering both qualitative and quantitative factors that may have a significant impact on the investees' fair value. The Company did not record any impairment charges related to its non-marketable equity investments for the years ended December 31, 2019, 2018 and 2017.

Financial Instruments and Concentration of Credit Risk

Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, short-term investments and accounts receivable. Risks associated with cash and cash equivalents and short-term investments are mitigated by the Company's investment policy, which limits the Company's investing to only those marketable securities rated at least A-1/P-1 Short Term Rating or A-/A3 Long Term Rating, as determined by independent credit rating agencies.

A significant portion of the Company's customer base is comprised of businesses throughout the Americas. However, a portion of the Company's revenues are derived from the Company's EMEA and Asia-Pacific operations.

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The following table sets forth percentages of the Company's revenues by geographic region for the years ended December 31:

	2019			2018			2017
Americas	47	%		49	%		50	%
EMEA	32	%		31	%		31	%
Asia-Pacific	21	%		20	%		19	%

No single customer accounted for greater than 10% of accounts receivable or revenues as of or for the years ended December 31, 2019, 2018 and 2017.

Property, Plant and Equipment

Property, plant and equipment are stated at the Company's original cost or at fair value for property, plant and equipment acquired through acquisitions, net of depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements and integral equipment at leased locations are amortized over the shorter of the lease term or the estimated useful life of the asset or improvement. Leasehold improvements acquired through acquisition are amortized over the shorter of the useful life of the assets or terms that include required lease periods and renewals that are deemed to be reasonably assured at the date of acquisition. Leasehold improvements that are placed into service significantly after and not contemplated at or near the beginning of the lease term are amortized over the shorter of the useful life of the assets or a term that includes required lease periods and renewals that are deemed to be reasonably assured at the date the leasehold improvements are purchased.

The Company's estimated useful lives of its property, plant and equipment are as follows:

Core systems	3-40 years
Buildings	12-58 years
Leasehold improvements	12-40 years
Personal Property	3-10 years

The Company's construction in progress includes direct and indirect expenditures for the construction and expansion of IBX data centers and is stated at original cost. The Company has contracted out substantially all of the construction and expansion efforts of its IBX data centers to independent contractors under construction contracts. Construction in progress includes costs incurred under construction contracts including project management services, engineering and schematic design services, design development, construction services and other construction-related fees and services. In addition, the Company has capitalized interest costs during the construction phase. Once an IBX data center or expansion project becomes operational, these capitalized costs are allocated to certain property, plant and equipment categories and are depreciated over the estimated useful life of the underlying assets.

The Company reviews its property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable such as a significant decrease in market price of an asset, a significant adverse change in the extent or manner in which an asset is being used or in its physical condition, a significant adverse change in legal factors or business climate that could affect the value of an asset or a continuous deterioration of the Company's financial condition. Recoverability of assets to be held and used is assessed by comparing the carrying amount of an asset to estimated undiscounted future net cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. The Company did not record any impairment charges related to its property, plant and equipment during the years ended December 31, 2019, 2018 and 2017.

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The Company enters into non-cancellable lease arrangements as the lessee primarily for its data center spaces, office spaces and equipment. Assets acquired through finance leases are included in property, plant and equipment, net on the consolidated balance sheets. In addition, a portion of the Company's property, plant and equipment are used for revenue arrangements which are accounted for as operating leases where the Company is the lessor.

Assets Held for Sale

Assets and liabilities to be disposed of that meet all of the criteria to be classified as held for sale are reported at the lower of their carrying amounts or fair values less costs to sell. The Company recorded an impairment charge of $15.8 million relating to assets held for sale for the year ended December 31, 2019. Assets are not depreciated or amortized while they are classified as held for sale. For further information on the Company's assets held for sale, see Note 5.

Asset Retirement Costs and Asset Retirement Obligations

The fair value of a liability for an asset retirement obligation is recognized in the period in which it is incurred. The associated retirement costs are capitalized and included as part of the carrying value of the long-lived asset and amortized over the useful life of the asset. Subsequent to the initial measurement, the Company accretes the liability in relation to the asset retirement obligations over time and the accretion expense is recorded as a cost of revenue. The Company's asset retirement obligations are primarily related to its IBX data centers, of which the majority are leased under long-term arrangements and are required to be returned to the landlords in their original condition. The majority of the Company's IBX data center leases have been subject to significant development by the Company in order to convert them from, in most cases, vacant buildings or warehouses into IBX data centers. For further information on the Company's leases, see Note 10.

Goodwill and Other Intangible Assets

The Company has three reportable segments comprised of the 1) Americas, 2) EMEA and 3) Asia-Pacific geographic regions, which the Company also determined are its reporting units. Goodwill is not amortized and is tested for impairment at least annually or more often if and when circumstances indicate that goodwill is not recoverable.

The Company assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. Qualitative factors considered in the assessment include industry and market conditions, overall financial performance, and other relevant events and factors affecting the reporting unit. If, after assessing the qualitative factors, the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying value, then performing a quantitative impairment test is unnecessary. However, if the Company concludes otherwise, then it is required to perform a quantitative goodwill impairment test. The quantitative impairment test, which is used to identify both the existence of impairment and the amount of impairment loss, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired. If the carrying value of the reporting unit exceeds its fair value, any excess of the reporting unit goodwill carrying value over the respective implied fair value is recognized as an impairment loss.

As of December 31, 2019, 2018 and 2017, the Company concluded that it was more likely than not that goodwill attributed to the Company's Americas, EMEA and Asia-Pacific reporting units was not impaired as the fair value of each reporting unit exceeded the carrying value of its respective reporting unit, including goodwill.

Substantially all of the Company's intangible assets are subject to amortization and are amortized using the straight-line method over their estimated period of benefit. The Company performs a review of intangible assets for impairment by assessing events or changes in circumstances that indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is assessed by comparing the carrying amount of an asset to estimated undiscounted future net cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. The Company did not record any impairment charges related to its other intangible assets during the years ended December 31, 2019, 2018 and 2017.

For further information on goodwill and other intangible assets, see Note 3 and Note 7 below.

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Debt Issuance Costs

Costs and fees incurred upon debt issuances are capitalized and are amortized over the life of the related debt based on the effective interest method. Such amortization is included as a component of interest expense. Debt issuance costs related to outstanding debt are presented as a reduction of the carrying amount of the debt obligation and debt issuance costs related to the revolving credit facility are presented as other assets.

Derivatives and Hedging Activities

The Company uses derivative instruments, including foreign currency forwards and options and cross-currency interest rate swaps, to manage certain foreign currency exposures. Derivative instruments are viewed as risk management tools by the Company and are not used for speculative purposes. The Company recognizes all derivatives on the Company's consolidated balance sheets at fair value. The accounting for changes in the value of a derivative depends on whether the contract qualifies and has been designated for hedge accounting. In order to qualify for hedge accounting, a derivative must be considered highly effective at reducing the risk associated with the exposure being hedged and there must be documentation of the risk management objective and strategy, including identification of the hedging instrument, the hedged item and the risk exposure, and the effectiveness assessment methodology. For cash flow hedges, the Company uses regression analysis at the time they are designated to assess their effectiveness. Hedge designations are reviewed on a quarterly basis to assess whether circumstances have changed that would disrupt the hedge instrument's relationship to the forecasted transactions or net investment.

The Company uses the forward method to assess effectiveness of qualifying foreign currency forwards that are designated as cash flow hedges, whereby, the change in the fair value of the derivative is recorded in other comprehensive income (loss) and reclassified to the same line item in the consolidated statement of operations that is used to present the earnings effect of the hedged item when the hedged item affects earnings. The Company uses the spot method to assess effectiveness of qualifying foreign currency exchange options that are designated as cash flow hedges, whereby, the change in fair value due to foreign currency exchange spot rates is recorded in other comprehensive income (loss) and reclassified to the same line item in the consolidated statement of operations that is used to present the earnings effect of the hedged item when the hedged item affects earnings, and the change in fair value of the excluded component is recorded in other comprehensive income (loss) and amortized on a straight-line basis to the same line item in the consolidated statement of operations that is used to present the earnings effect of the hedged item. When two or more derivative instruments in combination are jointly designated as a cash flow hedging instrument, as with foreign currency exchange option collars, they are treated as a single instrument. If the hedge relationship is terminated for any derivatives designated as cash flow hedges, then the change in fair value of the derivative recorded in other comprehensive income (loss) is recognized in earnings when the previously hedged item affects earnings, consistent with the original hedge strategy. For hedge relationships that are discontinued because the forecasted transaction is not expected to occur according to the original strategy, then any related derivative amounts recorded in other comprehensive income (loss) are immediately recognized in earnings.

From time to time, the Company enters into treasury lock agreements to add stability to interest expense and to manage its exposure to interest rate movements. A treasury lock is a synthetic forward sale of a U.S. treasury note which is settled in cash based upon the difference between an agreed upon treasury rate and the prevailing treasury rate at settlement. It is entered into to effectively fix the treasury rate component of an upcoming debt issuance. The treasury lock transactions are designated as cash flow hedges, with all changes in value reported in other comprehensive income (loss). Subsequent to settlement, amounts in other comprehensive income are reclassified to interest expense as interest payments are accrued on the debt.

The Company uses the spot method to assess effectiveness of cross-currency interest rate swaps that are designated as net investment hedges, whereby, the change in fair value due to foreign currency exchange spot rates is recorded in other comprehensive income (loss) and the change in fair value of the excluded component is recorded in other comprehensive income (loss) and amortized to interest expense on a straight-line basis.

From time to time, the Company also uses foreign exchange forward contracts to hedge against the effect of foreign exchange rate fluctuations on a portion of its net investment in the foreign subsidiaries. The Company uses the spot method to assess effectiveness of qualifying foreign currency forwards that are designated as net investment hedges, whereby, the change in fair value due to foreign currency exchange spot rates is recorded in other comprehensive income (loss) and the change in fair value of the excluded component is recorded in other comprehensive income (loss) and amortized to interest expense on a straight-line basis.

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Foreign currency gains or losses associated with derivatives that are not designated as hedging instruments for accounting purposes are recorded within other income (expense) in the Company's condensed consolidated statements of operations, with the exception of (i) foreign currency embedded derivatives contained in certain of the Company's customer contracts and (ii) foreign exchange forward contracts that are entered into to hedge the accounting impact of the foreign currency embedded derivatives, which are recorded within revenues in the Company's condensed consolidated statements of operations.

For further information on derivatives and hedging activities, see Note 8 below.

Fair Value of Financial Instruments

The carrying value of the Company's cash and cash equivalents, short-term investments and derivative instruments represent their fair value, while the Company's accounts receivable, accounts payable and accrued expenses and accrued property, plant and equipment approximate their fair value due primarily to the short-term maturity of the related instruments. The fair value of the Company's debt, which is traded in the public debt market, is based on quoted market prices. The fair value of the Company's debt, which is not publicly traded, is estimated by considering the Company's credit rating, current rates available to the Company for debt of the same remaining maturities and terms of the debt.

Fair Value Measurements

The Company measures and reports certain financial assets and liabilities at fair value on a recurring basis, including its investments in money market funds, certificates of deposit, publicly traded equity securities and derivatives.

The Company also follows the accounting standard for the measurement of fair value for non-financial assets and liabilities on a nonrecurring basis. These include:

•	Non-financial assets and non-financial liabilities initially measured at fair value in a business combination or other new basis event, but not measured at fair value in subsequent reporting periods;

•	Reporting units and non-financial assets and non-financial liabilities measured at fair value for goodwill impairment tests;

•	Indefinite-lived intangible assets measured at fair value for impairment assessments;

•	Non-financial long-lived assets or asset groups measured at fair value for impairment assessments or disposal; and

•	Asset retirement obligations initially measured at fair value but not subsequently measured at fair value.

For further information on fair value measurements, see Note 9 below.

Leases

The Company determines if an arrangement is or contains a lease at its inception. The Company enters into lease arrangements primarily for data center spaces, office spaces and equipment. The Company recognizes a right-of-use ("ROU") asset and lease liability on the consolidated balance sheet for all leases with a term longer than 12 months, including renewals.

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ROU assets represent the Company's right to use an underlying asset for the lease term. Lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and liabilities are classified and recognized at the commencement date. ROU liabilities are measured based on the present value of fixed lease payments over the lease term. ROU assets consist of (i) initial measurement of the lease liability; (ii) lease payments made to the lessor at or before the commencement date less any lease incentives received; and (iii) initial direct costs incurred by the Company. Lease payments may vary because of changes in facts or circumstances occurring after the commencement, including changes in inflation indices. Variable lease payments that depend on an index or a rate (such as the Consumer Price Index or a market interest rate) are included in the measurement of ROU assets and lease liabilities using the index or rate at the commencement date. Variable lease payments that do not depend on an index or a rate are excluded from the measurement of ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. Since most of the Company's leases do not provide an implicit rate, the Company uses its own incremental borrowing rate ("IBR") on a collateralized basis in determining the present value of lease payments. The Company utilizes a market-based approach to estimate the IBR. The approach requires significant judgment. Therefore, the Company utilizes different data sets to estimate IBRs via an analysis of (i) yields on comparable credit rating composite curves; (ii) sovereign rates; (iii) yields on our outstanding public debt; and (iv) historical difference in yields on the curves of our secured and unsecured rated debt. The Company also applies adjustments to account for considerations related to (i) tenor; and (ii) country credit rating that may not be fully incorporated by the aforementioned data sets.

The majority of the Company's lease arrangements include options to extend the lease. If the Company is reasonably certain to exercise such options, the periods covered by the options are included in the lease term. The depreciable lives of certain fixed assets and leasehold improvements are limited by the expected lease term. The Company has certain leases with an initial term of 12 months or less. For such leases, the Company elected not to recognize any ROU asset or lease liability on the consolidated balance sheet. The Company has lease agreements with lease and non-lease components. The Company elected to account for the lease and non-lease components as a single lease component for all classes of underlying assets for which the Company has identified lease arrangements.

Revenue

Revenue Recognition

Equinix derives more than 90% of its revenues from recurring revenue streams, consisting primarily of (1) colocation, which includes the licensing of cabinet space and power; (2) interconnection offerings, such as cross connects and Equinix Exchange ports; (3) managed infrastructure solutions and (4) other revenues consisting of rental income from tenants or subtenants. The remainder of the Company's revenues are from non-recurring revenue streams, such as installation revenues, professional services, contract settlements and equipment sales. Revenues by service lines and geographic areas are included in segment information (see Note 17).

Under the revenue accounting guidance, revenues are recognized when control of these products and services is transferred to its customers, in an amount that reflects the consideration it expects to be entitled to in exchange for the products and services. Revenues from recurring revenue streams are generally billed monthly and recognized ratably over the term of the contract, generally 1 to 3 years for IBX data center colocation customers. Non-recurring installation fees, although generally paid upfront upon installation, are deferred and recognized ratably over the contract term. Professional service fees and equipment sales are recognized in the period when the services were provided. For the contracts with customers that contain multiple performance obligations, the Company accounts for individual performance obligations separately if they are distinct or as a series of distinct obligations if the individual performance obligations meet the series criteria. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. The transaction price is allocated to the separate performance obligation on a relative standalone selling price basis. The standalone selling price is determined based on overall pricing objectives, taking into consideration market conditions, geographic locations and other factors. Other judgments include determining if any variable consideration should be included in the total contract value of the arrangement such as price increases.

Revenue is generally recognized on a gross basis as a principal versus on a net basis as an agent, as the Company is primarily responsible for fulfilling the contract, bears inventory risk and has discretion in establishing the price when selling to the customer. To the extent the Company does not meet the criteria for recognizing revenue on a gross basis, the Company records the revenue on a net basis. Revenue from contract settlements, when a customer wishes to

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terminate their contract early, is treated as a contract modification and recognized ratably over the remaining term of the contract, if any.

The Company guarantees certain service levels, such as uptime, as outlined in individual customer contracts. If these service levels are not achieved due to any failure of the physical infrastructure or offerings, or in the event of certain instances of damage to customer infrastructure within the Company's IBX data centers, the Company would reduce revenue for any credits or cash payments given to the customer. Historically, these credits and cash payments have not been significant.

The Company enters into revenue contracts with customers for data centers and office spaces, which contain both lease and non-lease components. The Company elected to adopt the practical expedient which allows lessors to combine lease and non-lease components, by underlying class of asset, and account for them as one component if they have the same timing and pattern of transfer. The combined component is accounted for in accordance with the current lease accounting guidance ("Topic 842") if the lease component is predominant, and in accordance with the current revenue accounting guidance ("Topic 606") if the non-lease component is predominant. Lessors are permitted to adopt this practical expedient on a retrospective or prospective basis. The Company elected to apply the practical expedient prospectively based on classes of underlying assets. In general, customer contracts for data centers are accounted for under Topic 606 and Customer contracts for the use of office space are accounted for under Topic 842, which are generally classified as operating leases and are recognized on a straight-line basis over the lease term.

Certain customer agreements are denominated in currencies other than the functional currencies of the parties involved. Under applicable accounting rules, the Company is deemed to have foreign currency forward contracts embedded in these contracts. The Company assessed these embedded contracts and concluded them to be foreign currency embedded derivatives (see Note 8). These instruments are separated from their host contracts and held on the Company's consolidated balance sheet at their fair value. The majority of these foreign currency embedded derivatives arise in certain of the Company's subsidiaries where the local currency is the subsidiary's functional currency and the customer contract is denominated in the U.S. dollar. Changes in their fair values are recognized within revenues in the Company's consolidated statements of operations.

Contract Balances

The timing of revenue recognition, billings and cash collections result in accounts receivables, contract assets and deferred revenues. A receivable is recorded at the invoice amount, net of an allowance for doubtful account and is recognized in the period when the Company has transferred products or provided services to its customers and when its right to consideration is unconditional. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 45 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined that the Company's contracts generally do not include a significant financing component. The Company assesses collectability based on a number of factors, including past transaction history with the customer and the credit-worthiness of the customer. The Company generally does not request collateral from its customers although in certain cases the Company obtains a security interest in a customer's equipment placed in its IBX data centers or obtains a deposit. The Company also maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments for which the Company had expected to collect the revenues. If the financial condition of the Company's customers were to deteriorate or if they became insolvent, resulting in an impairment of their ability to make payments, greater allowances for doubtful accounts may be required. Management specifically analyzes accounts receivable and current economic news and trends, historical bad debts, customer concentrations, customer credit-worthiness and changes in customer payment terms when evaluating revenue recognition and the adequacy of the Company's reserves. Any amounts that were previously recognized as revenue and subsequently determined to be uncollectable are charged to bad debt expense included in sales and marketing expense in the consolidated statements of operations. A specific bad debt reserve of up to the full amount of a particular invoice value is provided for certain problematic customer balances. An additional reserve is established for all other accounts based on the age of the invoices and an analysis of historical credits issued. Delinquent account balances are written off after management has determined that the likelihood of collection is not probable.

A contract asset exists when the Company has transferred products or provided services to its customers, but customer payment is contingent upon satisfaction of additional performance obligations. Certain contracts include terms related to price arrangements such as price increases and free months. The Company recognizes revenues

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ratably over the contract term, which could potentially give rise to contract assets during certain periods of the contract term. Contract assets are recorded in other current assets and other assets in the consolidated balance sheet.

Deferred revenue (a contract liability) is recognized when the Company has an unconditional right to a payment before it transfers products or services to customers. Deferred revenue is included in other current liabilities and other liabilities, respectively, in the consolidated balance sheet.

Contract Costs

Direct and indirect incremental costs solely related to obtaining revenue contracts are capitalized as costs of obtaining a contract, when they are incremental and if they are expected to be recovered. Such costs consist primarily of commission fees and sales bonuses, as well as indirect related payroll costs. Contract costs are amortized over the estimated period of benefit on a straight-line basis. The Company elected to apply the practical expedient which allows the Company to expense contract costs when incurred, if the amortization period is one year or less.

For further information on revenue recognition, see Note 2 below.

Income Taxes

Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credits carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are expected more likely than not to be realized in the future. A tax benefit from an uncertain income tax position may be recognized in the financial statements only if it is more likely than not that the position is sustainable, based solely on its technical merits and consideration of the relevant taxing authority's widely understood administrative practices and precedents. Recognized income tax positions are measured at the largest amount that has a greater than 50 percent likelihood of being realized. Any subsequent changes in recognition or measurement are reflected in the period in which the change in judgment occurs.

The Company elected to be taxed as a REIT for U.S. federal income tax purposes beginning with its 2015 taxable year. As a result, the Company may deduct the distributions made to its stockholders from taxable income generated by the Company and its qualified REIT subsidiaries ("QRSs"). The Company's dividends paid deduction generally eliminates the U.S. federal taxable income of the Company and its QRSs, resulting in no U.S. income tax due. However, the Company's taxable REIT subsidiaries ("TRSs") will continue to be subject to the U.S. corporate income taxes on any taxable income generated by them. In addition, the foreign operations of the Company will continue to be subject to local income taxes regardless of whether the foreign operations are operated as QRSs or TRSs.

The Company's qualification and taxation as a REIT depends on its satisfaction of certain asset, income, organizational, distribution, stockholder ownership and other requirements on a continuing basis. The Company's ability to satisfy quarterly asset tests depends upon its analysis and the fair market values of its REIT and non-REIT assets. For purposes of the quarterly REIT asset tests, the Company estimates the fair market value of assets within its QRSs and TRSs using a discounted cash flow approach, by calculating the present value of forecasted future cash flows. The Company applies discount rates based on industry benchmarks relative to the market and forecasting risks. Other significant assumptions used to estimate the fair market value of assets in QRSs and TRSs include projected revenue growth, projected operating margins, and projected capital expenditures. The Company revisits significant assumptions periodically to reflect any changes due to business or economic environment.

Stock-Based Compensation

Stock-based compensation cost is measured at the grant date for all stock-based awards made to employees and directors based on the fair value of the award. The Company generally recognizes stock-based compensation expense on a straight-line basis over the requisite service period of the awards, which is generally the vesting period. However, for awards with market conditions or performance conditions, stock-based compensation expense is recognized on a

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straight-line basis over the requisite service period for each vesting tranche of the award. The Company elected to estimate forfeitures based on historical forfeiture rates. 

The Company grants restricted stock units to its employees and these equity awards generally have only a service condition. The Company grants restricted stock units to its executives and these awards generally have a service and performance condition or a service and market condition. To date, any performance conditions contained in an equity award are tied to the financial performance of the Company or a specific region of the Company. The Company assesses the probability of meeting these performance conditions on a quarterly basis. The majority of the Company's equity awards vest over 4 years, although certain of the equity awards for executives vest over a range of 2 to 4 years. The valuation of restricted stock units with only a service condition or a service and performance condition requires no significant assumptions as the fair value for these types of equity awards is based solely on the fair value of the Company's stock price on the date of grant. The Company uses a Monte Carlo simulation option-pricing model to determine the fair value of restricted stock units with a service and market condition.

The Company uses the Black-Scholes option-pricing model to determine the fair value of its employee stock purchase plan. The determination of the fair value of shares purchased under the employee stock purchase plan is affected by assumptions regarding a number of complex and subjective variables including the Company's expected stock price volatility over the term of the awards and actual and projected employee stock purchase behaviors. The Company estimated the expected volatility by using the average historical volatility of its common stock that it believed was best representative of future volatility. The risk-free interest rate used was based on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term of the equity awards. The expected dividend rate used was based on average dividend yields and the expected term used was equal to the term of each purchase window.

The accounting standard for stock-based compensation does not allow the recognition of unrealized tax benefits associated with the tax deductions in excess of the compensation recorded (excess tax benefit) until the excess tax benefit is realized (i.e., reduces taxes payable). The Company records the excess tax benefits from stock-based compensation as income tax expense through the statement of operations.

For further information on stock-based compensation, see Note 13 below.

Foreign Currency Translation

The financial position of foreign subsidiaries is translated using the exchange rates in effect at the end of the period, while income and expense items are translated at average rates of exchange during the period. Gains or losses from translation of foreign operations where the local currency is the functional currency are included as other comprehensive income (loss). The net gains and losses resulting from foreign currency transactions are recorded in net income in the period incurred and recorded within other income (expense). Certain inter-company balances are designated as loans of a long-term investment-type nature. Accordingly, exchange gains and losses associated with these long-term inter-company balances are recorded as a component of other comprehensive income (loss), along with translation adjustments.

Earnings Per Share

The Company computes basic and diluted EPS for net income. Basic EPS is computed using net income and the weighted-average number of common shares outstanding. Diluted EPS is computed using net income and the weighted-average number of common shares outstanding plus any dilutive potential common shares outstanding. Dilutive potential common shares include the assumed exercise, vesting and issuance activity of employee equity awards using the treasury stock method. See Note 4 below.

Treasury Stock

The Company accounts for treasury stock under the cost method. When treasury stock is re-issued at a higher price than its cost, the difference is recorded as a component of additional paid-in capital to the extent that there are gains to offset the losses. If there are no treasury stock gains in additional paid-in capital, the losses are recorded as a component of retained earnings.

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Recent Accounting Pronouncements

Accounting Standards Not Yet Adopted

In December 2019, Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, Income Taxes ("Topic 740"): Simplifying the Accounting for Income Taxes. The ASU simplifies accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The ASU also improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public entities, the ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted including adoption in any interim period for periods for which financial statements have not yet been issued. The Company is currently evaluating the extent of the impact that the adoption of this standard will have on its condensed consolidated financial statements.

In June 2016, FASB issued ASU 2016-13, Financial Instruments - Credit Losses ("Topic 326"): Measurement of Credit Losses on Financial Instruments. The ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The ASU requires enhanced qualitative and quantitative disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization's portfolio. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted for all organizations for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company will adopt this new ASU on January 1, 2020. The Company is assessing the impact of this ASU on its accounting for allowances for doubtful accounts, but does not expect the adoption of this standard to have a significant impact on its condensed consolidated financial statements.

Accounting Standards Recently Adopted

Revenue

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers ("ASU 2014-09") and issued subsequent amendments to the initial guidance, collectively referred as "Topic 606." On January 1, 2018, the Company adopted Topic 606 using the modified retrospective approach applied to those contracts, which were not completed as of January 1, 2018, and recognized a net increase to the opening retained earnings of $269.8 million, net of tax impacts. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while the comparative information has not been restated and continues to be reported under accounting standards in effect for those periods.

Derivatives and Hedging

In August 2017, FASB issued ASU 2017-12 Derivatives and Hedging ("Topic 815"): Targeted Improvements to Accounting for Hedging Activities. This ASU was issued to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements and to simplify the application of the hedge accounting guidance in current GAAP. This ASU permits hedge accounting for risk components involving nonfinancial risk and interest rate risk, requires an entity to present the earnings effect of the hedging instrument in the same income statement line item in which the hedged item is reported, no longer requires separate measurement and reporting of hedge ineffectiveness, eases the requirement for hedge effectiveness assessment, and requires a tabular disclosure related to the effect on the income statement of fair value and cash flow hedges. This ASU is effective for annual or any interim reporting periods beginning after December 15, 2018 with early adoption permitted.

The Company adopted ASU 2017-12 on January 1, 2019 using the modified retrospective approach. For cash flow hedges existing on the date of adoption, the Company recognized the cumulative effect of the change on the opening balance of accumulated other comprehensive income (loss) with a corresponding adjustment to the opening balance of retained earnings for amounts previously recognized in earnings related to ineffectiveness. The adoption of this standard did not have a material impact on the Company's condensed consolidated financial statements.

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Leases

In February 2016, FASB issued ASU 2016-02, Leases and issued subsequent amendments to the initial guidance, collectively referred to as "Topic 842." Topic 842 replaces the guidance in former ASC Topic 840, Leases. The new lease guidance increases transparency and comparability among organizations by requiring the recognition of the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee's future obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use ("ROU") asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Topic 842 allows entities to adopt with one of two methods: the modified retrospective transition method or the alternative transition method.

On January 1, 2019, the Company adopted Topic 842 using the alternative transition method. Therefore, results for reporting periods beginning after January 1, 2019 are presented under Topic 842, while comparative information has not been restated and continues to be reported under accounting standards in effect for those periods. The Company recognized the cumulative effects of initially applying the standard as an adjustment to the opening balance of retained earnings in the period of adoption.

In adopting the new guidance, the Company elected to apply the package of practical expedients permitted under the transition guidance which allows the Company not to reassess (1) whether any expired or existing contracts contain leases under the new definition of a lease; (2) lease classification for any expired or existing leases; and (3) whether previously capitalized initial direct costs would qualify for capitalization under Topic 842. The Company also elected to apply the land easements practical expedient which permits the Company not to assess at transition whether any expired or existing land easements are, or contain, leases if they were not previously accounted for as leases under Topic 840.

Adoption of the standard had a significant impact on the Company's financial results, including the (1) recognition of new ROU assets and liabilities on its balance sheet for all operating leases; and (2) de-recognition of existing build-to-suit assets and liabilities with cumulative effects of initially applying the standard as an adjustment to the retained earnings. The cumulative effect of the changes made to its consolidated January 1, 2019 balance sheet from the adoption of Topic 842 was as follows (in thousands):

Balance Sheet		Balances at December 31, 2018				Adjustments due to adoption of Topic 842				Balances at January 1, 2019
Assets
Other current assets		$	274,857			$	(15,949	)		$	258,908
Property, plant and equipment, net		11,026,020				(293,111		)		10,732,909
Operating lease right-of-use assets		—				1,468,762				1,468,762
Intangible assets, net		2,333,296				(23,205		)		2,310,091
Other assets		533,252				(63,468		)		469,784
Liabilities
Current portion of operating lease liabilities		—				144,405				144,405
Current portion of finance lease liabilities		—				70,795				70,795
Current portion of capital lease and other financing obligations		77,844				(77,844		)		—
Other current liabilities		126,995				(6,455		)		120,540
Operating lease liabilities, less current portion		—				1,312,262				1,312,262
Finance lease liabilities, less current portion		—				1,165,188				1,165,188
Capital lease and other financing obligations, less current portion		1,441,077				(1,441,077		)		—
Other liabilities		629,763				(88,272		)		541,491
Equity
Retained Earnings		889,948				(5,973		)		883,975

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2.	Revenue Recognition

Contract Balances

The following table summarizes the opening and closing balances of the Company's accounts receivable, net; contract asset, current; contract asset, non-current; deferred revenue, current; and deferred revenue, non-current (in thousands):

	Accounts receivable, net				Contract asset, current				Contract asset, non-current				Deferred revenue, current				Deferred revenue, non-current
Beginning balances as of January 1, 2019	$	630,119			$	9,778			$	16,396			$	73,143			$	46,641
Closing balances as of December 31, 2019	689,134				10,033				31,521				76,193				46,555
Increase/(decrease)	$	59,015			$	255			$	15,125			$	3,050			$	(86	)
Beginning balances as of January 1, 2018 (1)	$	576,313			$	9,002			$	16,186			$	71,085			$	53,101
Closing balances as of December 31, 2018	630,119				9,778				16,396				73,143				46,641
Increase/(decrease)	$	53,806			$	776			$	210			$	2,058			$	(6,460	)

(1)	Includes cumulative adjustments made to these accounts on January 1, 2018 from the adoption of Topic 606.

The difference between the opening and closing balances of the Company's accounts receivable, net, contract assets and deferred revenues primarily results from the timing difference between the satisfaction of the Company's performance obligation and the customer's payment, as well as business combinations closed during the years ended December 31, 2019 and 2018. The amounts of revenue recognized during the years ended December 31, 2019 and 2018 from the opening deferred revenue balance were approximately $87.3 million and $81.8 million, respectively. For the years ended December 31, 2019 and 2018, no impairment loss related to contract balances was recognized in the consolidated statement of operations.

Contract Costs

The ending balances of net capitalized contract costs as of December 31, 2019 and 2018 were $229.2 million and $188.2 million, respectively, which were included in other assets in the consolidated balance sheet. $72.9 million and $73.1 million of contract costs were amortized during years ended December 31, 2019 and 2018, respectively, which were included in sales and marketing expense in the consolidated statement of operations.

Remaining performance obligations

As of December 31, 2019, approximately $7.4 billion of total revenues and deferred installation revenues are expected to be recognized in future periods, the majority of which will be recognized over the next 24 months. While initial contract terms vary in length, substantially all contracts thereafter automatically renew in one-year increments. Included in the remaining performance obligations is either 1) remaining performance obligations under the initial contract terms or 2) remaining performance obligations related to contracts in the renewal period once the initial terms have lapsed. The remaining performance obligations do not include variable consideration related to unsatisfied performance obligations such as the usage of metered power, service fees from xScale data centers, which are calculated based on future events or actual costs incurred in the future, or any contracts that could be terminated without any significant penalties such as the majority of interconnection revenues. The remaining performance obligations above include revenues to be recognized in the future related to arrangements where the Company is considered the lessor.

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3.	Acquisitions

2019 Acquisitions

On April 18, 2019, the Company completed the acquisition of Switch Datacenters' AMS1 data center business in Amsterdam, Netherlands, for a cash purchase price of approximately €30.6 million or approximately $34.3 million, at the exchange rate in effect on April 18, 2019. As of September 30, 2019, the Company had completed the detailed valuation analysis to derive the fair value of assets acquired and liabilities assumed and updated the final allocation of purchase price. The operating results of the acquisition were reported in the EMEA region following the date of acquisition and were not significant to the Company's total operations for the year ended December 31, 2019.

2018 Acquisitions

On April 18, 2018, the Company acquired all of the equity interests in Metronode from the Ontario Teachers' Pension Plan Board for a cash purchase price of A$1.034 billion, or approximately $804.6 million at the exchange rate in effect on April 18, 2018. Metronode operated 10 data centers in six metro areas in Australia. The acquisition supports the Company's ongoing global expansion to meet customer demand in the Asia-Pacific region.

On April 2, 2018, the Company completed the acquisition of Infomart Dallas, including its operations and tenants, from ASB Real Estate Investments, for total consideration of approximately $804.0 million. The consideration was comprised of approximately $45.8 million in cash, subject to customary adjustments and $758.2 million aggregate fair value of 5.000% senior unsecured notes. Prior to the acquisition, a portion of the building was leased to the Company and was being used as its Dallas 1, 2, 3 and 6 data centers, which were all accounted for as build-to-suit leases. Upon acquisition, the Company effectively terminated the leases and settled the related financing obligations and other liabilities related to the leases for approximately $170.3 million and $1.9 million, respectively, and recognized a loss on debt extinguishment of $19.5 million. The acquisition of this highly interconnected facility and tenants adds to the Company's global platform and secures the ability to further expand in the Americas market in the future.

Both acquisitions constitute a business under the accounting standard for business combinations and, therefore, were accounted for as business combinations using the acquisition method of accounting. Under the acquisition method of accounting, the total purchase price is allocated to the assets acquired and liabilities assumed measured at fair value on the date of acquisition. During the three months ended March 31, 2019, the Company completed the detailed valuation analysis of Metronode and Infomart Dallas to derive the fair value of assets acquired and liabilities assumed and finalized the allocation of purchase price for Metronode and Infomart Dallas. For the Metronode Acquisition, the adjustments made during the three months ended March 31, 2019 primarily resulted in a decrease in deferred tax liability and goodwill of $4.2 million and $3.7 million, respectively. No purchase price allocation adjustments were made during the three months ended March 31, 2019 for the Infomart Dallas Acquisition.

For the Metronode Acquisition, the adjustments made from the provisional amounts reported as of June 30, 2018 primarily resulted in a decrease in property, plant and equipment, other assets, other liabilities and deferred tax assets of $10.1 million, $10.0 million, $9.7 million and $4.1 million, respectively, and an increase in goodwill, intangible assets and deferred tax liabilities of $41.6 million, $4.8 million and $31.3 million, respectively. The adjustments for the Infomart Dallas Acquisition made from the provisional amounts reported as of June 30, 2018 primarily resulted in a decrease in goodwill of $6.2 million and an increase in intangible assets of $4.6 million. The changes in fair value of acquired assets and liabilities assumed did not have a significant impact on the Company's results of operations for any reporting periods prior to March 31, 2019.

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A summary of the final allocation of total purchase consideration is presented as follows (in thousands):

	Metronode				Infomart Dallas
Cash and cash equivalents	$	3,206			$	17,432
Accounts receivable	8,318				637
Other current assets	9,421				395
Property, plant and equipment	297,092				362,023
Intangible assets	128,229				65,847
Goodwill	410,188				197,378
Other assets (1)	44,373				—
Total assets acquired	900,827				643,712
Accounts payable and accrued liabilities	(17,104		)		(5,056		)
Other current liabilities	(2,038		)		(2,141		)
Deferred tax liabilities	(31,281		)		—
Other liabilities (1)	(45,851		)		(4,723		)
Net assets acquired	$	804,553			$	631,792

(1)	In connection with the Metronode Acquisition, the Company recorded indemnification assets of $44.4 million, which represented the seller's obligation under the purchase agreement to reimburse pre-acquisition tax liabilities settled after the acquisition.

The following table presents certain information on the acquired intangible assets (in thousands):

Intangible Assets		Fair Value				Estimated Useful Lives (Years)		Weighted-average Estimated Useful Lives (Years)
Customer relationships (Metronode)		$	128,229			20.0		20.0
Customer relationships (Infomart Dallas)		35,860				20.0		20.0
In-place leases (Infomart Dallas)		19,960				3.6 - 7.5		6.8
Trade names (Infomart Dallas)		9,552				20.0		20.0
Favorable leases (Infomart Dallas)		475				3.6 - 7.5		7.0

The fair value of customer relationships was estimated by applying an income approach, by calculating the present value of estimated future operating cash flows generated from existing customers less costs to realize the revenue. The Company applied discount rates of 7.3% for Metronode and 8.2% for Infomart Dallas, which reflected the nature of the assets as they relate to the risk and uncertainty of the estimated future operating cash flows. Other assumptions used to estimate the fair value of customer relationships included projected revenue growth, capital expenditures, probability of renewal, customer attrition rates and operating margins. The fair value of Infomart Dallas' trade name was estimated using the relief from royalty method under the income approach. The Company applied a relief from royalty rate of 1.5% and a discount rate of 8.2%. The fair value of in-place leases was estimated by projecting the avoided costs, such as the cost of originating the acquired in-place leases, during a typical lease up period. The fair value measurements were based on significant inputs that are not observable in the market and thus represent Level 3 measurements as defined in the accounting standard for fair value measurements.

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The fair value of property, plant and equipment was estimated by applying the cost approach, with the exception of land, which was estimated by applying the market approach, for the Metronode Acquisition. For the Infomart Dallas Acquisition, the fair values of land, building and personal property were estimated by applying the market approach, residual income method and cost approach, respectively. The cost approach uses the replacement or reproduction cost as an indicator of fair value. The premise of the cost approach is that a market participant would pay no more for an asset than the amount for which the asset could be replaced or reproduced. The key assumptions of the cost approach include replacement cost new, physical deterioration, functional and economic obsolescence, economic useful life, remaining useful life, age and effective age. The residual income method estimates the fair value of the Infomart Dallas building using an income approach less the fair values attributed to land, personal property, in-place leases and favorable and unfavorable leases.

Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired and liabilities assumed. Goodwill is attributable to the workforce of the acquired business and the projected revenue increase expected to arise from future customers after the Metronode and Infomart Dallas acquisitions. Goodwill from the acquisition of Metronode is not amortizable for local tax purposes and is attributable to the Company's Asia-Pacific region. Goodwill from the acquisition of Infomart Dallas is expected to be deductible for local tax purposes and is attributable to the Company's Americas region. Operating results of Metronode and Infomart Dallas have been reported in the Asia-Pacific and Americas regions, respectively.

The Company incurred transaction costs of approximately $31.1 million during the year ended December 31, 2018 for both acquisitions. The Company's results of operations include $78.7 million of revenues and an insignificant amount of net income from operations from the combined operations of Metronode and Infomart Dallas during the year ended December 31, 2018.

Certain Verizon Data Center Assets Acquisition

On May 1, 2017, the Company completed the acquisition of certain colocation business from Verizon consisting of 29 data center buildings located in the United States, Brazil and Colombia, for a cash purchase price of approximately $3.6 billion. The addition of these facilities and customers adds to the Company's global platform, increases interconnections and assists with the Company's penetration of the enterprise and strategic markets, including government and energy. The Company funded the Verizon Data Center Acquisition with proceeds from debt and equity financings, which closed in January and March 2017.

Purchase Price Allocation

The Verizon Data Center Acquisition constitutes a business under the accounting standard for business combinations and, therefore, was accounted for as a business combination using the acquisition method of accounting. During the three months ended March 31, 2018, the Company had completed the detailed valuation analysis to derive the fair value of assets acquired and liabilities assumed and updated the final allocation of purchase price from provisional amounts reported as of June 30, 2017, which primarily resulted in a decrease in intangible assets of $9.0 million and an increase in goodwill of $7.7 million. The changes in fair value of acquired assets and liabilities assumed did not have a significant impact on the Company's results of operations for any reporting periods prior to and including December 31, 2018.

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The final purchase price allocation is as follows (in thousands):

	Certain Verizon Data Center Assets
Cash and cash equivalents	$	1,073
Accounts receivable	2,019
Other current assets	7,319
Property, plant and equipment	840,335
Intangible assets (1)	1,693,900
Goodwill	1,095,262
Total assets acquired	3,639,908
Accounts payable and accrued liabilities	(1,725		)
Other current liabilities	(2,020		)
Capital lease and other financing obligations	(17,659		)
Deferred tax liabilities	(18,129		)
Other liabilities	(5,689		)
Net assets acquired	$	3,594,686

(1)	The nature of the intangible assets acquired is customer relationships with an estimated useful life of 15 years. Included in this amount is a customer relationship intangible asset for Verizon totaling $245.3 million. Pursuant to the acquisition agreement, the Company formalized agreements to provide pre-existing space and services to Verizon at the acquired data centers.

The fair value of customer relationships was estimated by applying an income approach. The Company applied discount rates ranging from 7.7% to 12.2%, which reflected the nature of the assets as they relate to the risk and uncertainty of the estimated future operating cash flows. Other assumptions used to estimate the fair value of customer relationships include projected revenue growth, customer attrition rates, sales and marketing expenses and operating margins. The fair value measurements were based on significant inputs that are not observable in the market and thus represent Level 3 measurements as defined in the accounting standard for fair value measurements.

The fair value of property, plant and equipment was estimated by applying the cost approach, with the exception of land which was estimated by applying the market approach. The cost approach is to use the replacement or reproduction cost as an indicator of fair value. The assumptions of the cost approach include replacement cost new, physical deterioration, functional and economic obsolescence, economic useful life, remaining useful life, age and effective age.

Goodwill is attributable to the workforce of the acquired business and the projected revenue increase expected to arise from future customers after the Verizon Data Center Acquisition. Goodwill is deductible for U.S. tax purposes and is attributable to the Company's Americas region. The Company incurred transaction costs of approximately $28.5 million during the year ended December 31, 2017 related to the Verizon Data Center Acquisition. The Company's results of operations include the Verizon Data Center Acquisition's revenues of $359.1 million and net income of $87.8 million for the period May 1, 2017 through December 31, 2017.

Other 2017 Acquisitions

In addition to the Verizon Data Center Acquisition, the Company also acquired Itconic, Zenium's data center business in Istanbul, Turkey and IO UK's data center business during 2017. The Company incurred transaction costs of approximately $8.1 million in total during the year ended December 31, 2017 related to these acquisitions.

On October 9, 2017, the Company completed the acquisition of Itconic for a cash purchase price of €220.5 million, or $259.1 million at the exchange rate in effect on October 9, 2017. Itconic is a data center provider in Spain and Portugal, and also includes CloudMas, an Itconic subsidiary which is focused on supporting enterprise adoption and use of cloud services. The acquisition includes five data centers in four metro areas, with two located in Madrid and one each in Barcelona, Seville and Lisbon. Itconic's operating results have been reported in the EMEA region following the date of acquisition.

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The nature of the intangible assets acquired from the Itconic acquisition is customer relationships with an estimated useful life of 15 years. The fair value of customer relationships was estimated by applying an income approach. The Company applied a discount rate of 16.0%, which reflects the risk and uncertainty of the estimated future operating cash flows. Other assumptions include projected revenue growth, customer attrition rates and operating margins. The fair value measurements were based on significant inputs that are not observable in the market and thus represent Level 3 measurements as defined in the accounting standard for fair value measurements. Goodwill is attributable to the workforce of the acquired business and the projected revenue increase from future customers expected to arise after the acquisition.

On October 6, 2017, the Company acquired Zenium's data center business in Istanbul for a cash payment of approximately $92.0 million. Zenium's operating results have been reported in the EMEA region following the date of acquisition. The nature of the intangible assets acquired from this acquisition is customer relationships with an estimated useful life of 15 years.

As of December 31, 2018, the Company completed the detailed valuation analysis to derive the fair value of assets acquired and liabilities assumed from the Itconic and the Zenium data center acquisitions and updated the final allocation of purchase price from the provisional amounts reported as of December 31, 2017. The adjustments for the Zenium data center acquisition primarily resulted in an increase in property, plant and equipment of $5.2 million and a corresponding decrease in other assets of $5.2 million. The adjustments for Itconic primarily resulted in a decrease in property, plant and equipment of $3.6 million and an increase in goodwill of $2.6 million. The changes in fair value of acquired assets and liabilities assumed did not have a significant impact on the Company's results of operations for any reporting periods prior to and including December 31, 2018.

On February 3, 2017, the Company acquired IO UK's data center operating business in Slough, United Kingdom, for a cash payment of £29.1 million, or approximately $36.3 million at the exchange rate in effect on February 3, 2017. The acquired facility was renamed London 10 ("LD10") data center. LD10's operating results have been reported in the EMEA region following the date of acquisition. The nature of the intangible assets acquired from this acquisition is customer relationships with an estimated useful life of 10 years. As of December 31, 2017, the Company had finalized the allocation of purchase price for the IO Acquisition from the provisional amounts first reported as of March 31, 2017 and the adjustments made during the year ended December 31, 2017 were not significant. The changes in fair value of acquired assets and liabilities assumed did not have a significant impact on the Company's results of operations for any reporting periods prior to and including December 31, 2017.

The final purchase price allocations for the three acquisitions are as follows (in thousands):

	Itconic				Zenium data center				IO UK's data center
Cash and cash equivalents	$	15,659			$	692			$	1,388
Accounts receivable	16,429				198				7
Other current assets	1,885				6,430				1,082
Property, plant and equipment	64,499				58,931				40,251
Intangible assets	101,755				7,900				6,252
Goodwill	127,711				21,834				15,804
Deferred tax assets	—				—				6,714
Other assets	4,025				313				3,396
Total assets acquired	331,963				96,298				74,894
Accounts payable and accrued liabilities	(15,846		)		(1,012		)		(439		)
Other current liabilities	(12,374		)		(451		)		(168		)
Capital lease and other financing obligations	(30,666		)		—				(33,091		)
Loans payable	(3,253		)		—				(4,067		)
Deferred tax liabilities	(3,198		)		(2,227		)		—
Other liabilities	(7,515		)		(614		)		(828		)
Net assets acquired	$	259,111			$	91,994			$	36,301

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4.	Earnings Per Share

The following table sets forth the computation of basic and diluted EPS for the years ended December 31 (in thousands, except per share amounts):

	2019				2018				2017
Net income	$	507,245			$	365,359			$	232,982
Net loss attributable to non-controlling interests	205				—				—
Net income attributable to Equinix	$	507,450			$	365,359			$	232,982
Weighted-average shares used to calculate basic EPS	84,140				79,779				76,854
Effect of dilutive securities:
Employee equity awards	539				418				681
Weighted-average shares used to calculate diluted EPS	84,679				80,197				77,535
EPS attributable to Equinix:
Basic EPS	$	6.03			$	4.58			$	3.03
Diluted EPS	$	5.99			$	4.56			$	3.00

The following table sets forth potential shares of common stock that are not included in the diluted EPS calculation above because to do so would be anti-dilutive for the years ended December 31 (in thousands):

	2019			2018			2017
Common stock related to employee equity awards	21			265			63
Total	21			265			63

5.	Assets Held for Sale

Sale of xScale™ data center facilities in Europe

In June 2019, the Company entered into an agreement to form a joint venture in the form of a limited liability partnership with GIC, Singapore's sovereign wealth fund (the "Joint Venture"), to develop and operate xScale data centers in Europe. The Company agreed to sell certain data center facilities in Europe to the Joint Venture. The assets and liabilities of these data center facilities, which were included within the Company's EMEA operating segment, were classified as held for sale as of June 30, 2019 and through September 30, 2019.

On October 8, 2019, the Company closed the Joint Venture and sold both its London 10 and Paris 8 data centers, as well as certain construction development and leases in London and Frankfurt, to the Joint Venture in exchange for a total consideration of $433.0 million, which is comprised of 1) net cash proceeds of $351.8 million, 2) a 20% partnership interest in the Joint Venture with a fair value of $41.9 million, and 3) a contingent consideration with fair value of approximately $39.3 million, receivable upon completion of certain performance milestones. As part of the transaction, the Company recorded liabilities of $41.4 million within other liabilities on the consolidated balance sheet, which represents its obligation to complete future construction for certain sites sold. During the year ended December 31, 2019, the Company recognized a total gain of $45.1 million on the sale of its xScale data center facilities in Europe to the Joint Venture.

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The milestone payments are primarily contingent on the receipt of local regulatory approval for certain sites. The contingent consideration is considered a derivative and is remeasured at its fair value each reporting period using inputs such as probabilities of payment, discount rates, foreign currency forward rates and projected payment dates. The fair value measurements were based on significant inputs that are not observable in the market and thus represent Level 3 measurements. The fair value of the contingent consideration of $40.1 million at December 31, 2019, of which $34.3 million was included in other current assets and the remaining $5.8 million was included in other assets on the consolidated balance sheet. Future changes in the fair value of the contingent consideration will continue to be recorded in gain (loss) on asset sales on the consolidated statement of operations.

For further information on the Joint Venture, see Note 6 below.

Sale of New York 12 ("NY12") data center

In January 2019, the Company entered into an agreement to sell its NY12 data center, which was reported in its Americas' region. The assets of the NY12 data center to be divested were classified as held for sale. During the year ended December 31, 2019, the Company recorded an impairment charge of $15.8 million, reducing the carrying value of NY12 assets to the estimated fair value less cost to sell. The transaction closed in October 2019 and the gain on sale recognized was insignificant.

6.	Equity Method Investments

As described in Note 5 above, the Company and GIC closed their Joint Venture on October 8, 2019. Upon closing, GIC contributed €152.6 million in cash, or $167.4 million at the exchange rate in effect on October 8, 2019, for an 80% partnership interest in the Joint Venture. Equinix sold certain xScale data center facilities to the Joint Venture in exchange for net cash proceeds of $351.8 million and a 20% partnership interest in the Joint Venture with a fair value of $41.9 million. The Company accounts for its investments in the Joint Venture using the equity method of accounting, whereby the investments were recorded initially at fair value, which equals to the cost of the Company's initial equity contribution, and subsequently adjusted for cash contributions and the Company's share of the income and losses of the investees.

As of December 31, 2019, the Company had equity method investments of $59.7 million within other assets on the consolidated balance sheet. The Company's share of the income and losses of the equity method investments was not significant for the years ended December 31, 2019, and was included in other income on the consolidated statement of operations.

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7.	Balance Sheet Components

Cash, Cash Equivalents and Short-Term Investments

Cash, cash equivalents and short-term investments consisted of the following as of December 31 (in thousands):

	2019				2018
Cash and cash equivalents:
Cash	$	983,030			$	486,648
Cash equivalents:
Money market funds	886,547				119,518
Total cash and cash equivalents	1,869,577				606,166
Short-term investments:
Certificates of deposit	7,583				2,823
Publicly traded equity securities	2,779				1,717
Total short-term investments	10,362				4,540
Total cash, cash equivalents and short-term investments	$	1,879,939			$	610,706

As of December 31, 2019 and 2018, cash and cash equivalents included investments which were readily convertible to cash and had original maturity dates of 90 days or less. The maturities of certificates of deposit classified as short-term investments were one year or less as of December 31, 2019 and 2018. The Company does not have any certificates of deposits with maturities greater than one year as of December 31, 2019 and 2018.

Accounts Receivable

Accounts receivable, net, consisted of the following as of December 31 (in thousands):

	2019				2018
Accounts receivable	$	702,160			$	646,069
Allowance for doubtful accounts	(13,026		)		(15,950		)
Accounts receivable, net	$	689,134			$	630,119

Trade accounts receivable are recorded at the invoiced amount and generally do not bear interest.

The following table summarizes the activity of the Company's allowance for doubtful accounts (in thousands):

Balance as of December 31, 2016	$	15,675
Provision for allowance for doubtful accounts	5,627
Net write-offs	(4,546		)
Impact of foreign currency exchange	1,472
Balance as of December 31, 2017	18,228
Provision for allowance for doubtful accounts	7,236
Net write-offs	(8,396		)
Impact of foreign currency exchange	(1,118		)
Balance as of December 31, 2018	15,950
Provision for allowance for doubtful accounts	8,459
Net write-offs	(11,341		)
Impact of foreign currency exchange	(42		)
Balance as of December 31, 2019	$	13,026

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Other Current Assets

Other current assets consisted of the following as of December 31 (in thousands):

	2019				2018
Prepaid expenses	$	55,954			$	70,433
Taxes receivable	122,823				98,245
Restricted cash, current	7,090				10,887
Other receivables	36,350				12,611
Derivative instruments	25,426				62,170
Contract asset, current	10,033				9,778
Other current assets (1)	45,867				10,733
Total other current assets	$	303,543			$	274,857

(1)	The December 31, 2019 balance included $34.3 million representing the current portion of the fair value of the contingent consideration from the sale of xScale data center facilities to the Joint Venture. See Note 5 for further discussion.

Property, Plant and Equipment, Net

Property, plant and equipment, net consisted of the following as of December 31 (in thousands):

	2019				2018
Core systems	$	8,131,835			$	7,073,912
Buildings	5,398,525				4,822,501
Leasehold improvements	1,764,058				1,637,133
Construction in progress	1,002,104				974,152
Personal property	1,009,701				857,585
Land	781,024				631,367
	18,087,247				15,996,650
Less accumulated depreciation	(5,934,650		)		(4,970,630		)
Property, plant and equipment, net	$	12,152,597			$	11,026,020

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Goodwill and Other Intangibles

The following table presents goodwill and other intangible assets, net, for the years ended December 31, 2019 and 2018 (in thousands):

	2019				2018
Goodwill:
Americas	$	1,741,689			$	1,745,804
EMEA	2,426,306				2,474,164
Asia-Pacific	613,863				616,420
	$	4,781,858			$	4,836,388
Intangible assets, net:
Intangible assets - customer relationships	$	2,712,701			$	2,733,864
Intangible assets - trade names	46,601				71,778
Intangible assets - favorable leases	—				35,969
Intangible assets - in-place leases	33,295				33,671
Intangible assets - licenses	9,697				9,697
Intangible assets - other	6,402				—
	2,808,696				2,884,979
Accumulated amortization - customer relationships	(646,632		)		(467,111		)
Accumulated amortization - trade names	(37,885		)		(62,585		)
Accumulated amortization - favorable leases	—				(9,986		)
Accumulated amortization - in-place leases	(14,329		)		(8,118		)
Accumulated amortization - licenses	(4,529		)		(3,883		)
Accumulated amortization - other	(2,932		)		—
	(706,307		)		(551,683		)
Total intangible assets, net	$	2,102,389			$	2,333,296

Changes in the carrying amount of goodwill by geographic regions are as follows (in thousands):

	Americas				EMEA				Asia-Pacific				Total
Balance as of December 31, 2017	$	1,561,512			$	2,610,899			$	239,351			$	4,411,762
Purchase accounting - Infomart Dallas acquisition	197,378				—				—				197,378
Purchase accounting - Metronode acquisition	—				—				413,871				413,871
Purchase accounting - other acquisitions	333				1,357				—				1,690
Impact of foreign currency exchange	(13,419		)		(138,092		)		(36,802		)		(188,313		)
Balance as of December 31, 2018	1,745,804				2,474,164				616,420				4,836,388
Purchase accounting - acquisition	—				25,863				(3,683		)		22,180
Asset sales - xScale data center facilities	—				(59,246		)		—				(59,246		)
Asset sales - NY12 data center	(950		)		—				—				(950		)
Impact of foreign currency exchange	(3,165		)		(14,475		)		1,126				(16,514		)
Balance as of December 31, 2019	$	1,741,689			$	2,426,306			$	613,863			$	4,781,858

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Changes in the net book value of intangible assets by geographic regions are as follows (in thousands):

	Americas				EMEA				Asia-Pacific				Total
Balance as of December 31, 2016	$	40,117			$	562,361			$	116,753			$	719,231
Verizon Data Center acquisition	1,693,900				—				—				1,693,900
Other 2017 acquisitions	—				112,645				—				112,645
Write-off of intangible asset	—				(725		)		—				(725		)
Amortization of intangibles	(84,749		)		(79,105		)		(13,154		)		(177,008		)
Impact of foreign currency exchange	(2,895		)		36,043				3,781				36,929
Balance as of December 31, 2017	1,646,373				631,219				107,380				2,384,972
Infomart Dallas acquisition	65,847				—				—				65,847
Metronode acquisition	—				—				128,229				128,229
Other acquisitions	—				8,342				—				8,342
Write-off of intangible asset	(334		)		(1,661		)		(3		)		(1,998		)
Amortization of intangibles	(125,683		)		(62,283		)		(15,450		)		(203,416		)
Impact of foreign currency exchange	(7,232		)		(31,757		)		(9,691		)		(48,680		)
Balance as of December 31, 2018	1,578,971				543,860				210,465				2,333,296
ASC 842 adoption adjustment	(108		)		(20,692		)		(2,405		)		(23,205		)
Switch AMS1 data center acquisition	—				4,889				—				4,889
Asset sales - NY12 data center	(8,412		)		—				—				(8,412		)
Other	—				1,096				472				1,568
Amortization of intangibles	(125,390		)		(54,432		)		(16,456		)		(196,278		)
Impact of foreign currency exchange	(1,769		)		(8,157		)		457				(9,469		)
Balance as of December 31, 2019	$	1,443,292			$	466,564			$	192,533			$	2,102,389

The Company's goodwill and intangible assets which are denominated in currencies other than the U.S. Dollar are subject to foreign currency fluctuations. The Company's foreign currency translation gains and losses, including goodwill and intangibles, are a component of other comprehensive income and loss.

Estimated future amortization expense related to these intangibles is as follows (in thousands):

Years ending:
2020	$	190,222
2021	182,765
2022	178,780
2023	178,513
2024	177,733
Thereafter	1,194,376
Total	$	2,102,389

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Other Assets

Other assets consisted of the following as of December 31 (in thousands):

	2019				2018
Deferred tax assets, net	$	35,806			$	58,300
Prepaid expenses	61,690				125,158
Debt issuance costs, net	6,395				8,532
Deposits	56,567				54,986
Restricted cash	9,946				10,551
Derivative instruments	32,280				10,904
Contract assets, non-current	31,521				16,396
Contract costs	229,205				188,200
Equity method investments	59,737				10,000
Other assets	57,641				50,225
Total other assets	$	580,788			$	533,252

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following as of December 31 (in thousands):

	2019				2018
Accounts payable	$	52,232			$	96,980
Accrued compensation and benefits	241,361				235,697
Accrued interest	103,345				126,142
Accrued taxes (1)	135,099				118,818
Accrued utilities and security	107,404				78,547
Accrued professional fees	20,741				17,010
Accrued repairs and maintenance	10,699				10,736
Accrued other	89,837				72,762
Total accounts payable and accrued expenses	$	760,718			$	756,692

(1)	Includes income taxes payable of $57.7 million and $67.9 million, respectively, as of December 31, 2019 and 2018.

Other Current Liabilities

Other current liabilities consisted of the following as of December 31 (in thousands):

	2019				2018
Deferred revenue, current	$	76,193			$	73,143
Customer deposits	16,707				20,430
Derivative instruments	31,596				8,812
Deferred rent	—				6,466
Dividends payable	9,029				8,795
Asset retirement obligations	2,081				6,776
Other current liabilities	18,332				2,573
Total other current liabilities	$	153,938			$	126,995

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Other Liabilities

Other liabilities consisted of the following as of December 31 (in thousands):

	2019				2018
Asset retirement obligations	$	100,334			$	89,887
Deferred tax liabilities, net	247,179				247,849
Deferred revenue, non-current	46,555				46,641
Deferred rent	—				108,693
Accrued taxes	146,046				116,735
Dividends payable	7,108				6,545
Customer deposits	9,306				9,671
Derivative instruments	4,017				928
Other liabilities (1)	61,180				2,814
Total other liabilities	$	621,725			$	629,763

(1)	The balance as of December 31, 2019 includes $41.4 million of liabilities recorded upon the closing of the Joint Venture, which represents the Company’s obligation to pay for future construction that was not completed at the close of the transaction. See Note 5 for further discussion.

The following table summarizes the activities of the Company's asset retirement obligation ("ARO") (in thousands):

Asset retirement obligations as of December 31, 2016	$	103,015
Additions	17,736
Adjustments (1)	(34,576		)
Accretion expense	7,335
Impact of foreign currency exchange	5,029
Asset retirement obligations as of December 31, 2017	98,539
Additions	5,126
Adjustments (1)	(11,288		)
Accretion expense	6,285
Impact of foreign currency exchange	(1,999		)
Asset retirement obligations as of December 31, 2018	96,663
Additions	6,980
Adjustments (1)	(7,969		)
Accretion expense	6,290
Impact of foreign currency exchange	451
Asset retirement obligations as of December 31, 2019	$	102,415

(1)	The ARO adjustments are primarily due to lease amendments and acquisition of real estate assets, as well as other adjustments.

8.	Derivatives and Hedging Instruments

Derivatives Designated as Hedging Instruments

Net Investment Hedges. The Company is exposed to the impact of foreign exchange rate fluctuations on the value of investments in its foreign subsidiaries whose functional currencies are other than the U.S. Dollar. In order to mitigate the impact of foreign currency exchange rates, the Company has entered into various foreign currency debt obligations, which are designated as hedges against the Company's net investments in foreign subsidiaries. As of December 31,

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2019 and 2018, the total principal amounts of foreign currency debt obligations designated as net investment hedges were $4,078.7 million and $4,139.8 million, respectively.

The Company also uses cross-currency interest rate swaps to hedge a portion of its net investment in its European operations. As of December 31, 2019, U.S. Dollar to Euro cross-currency interest rate swap contracts with a total notional amount of $750.0 million were outstanding, with maturity dates in April 2022, January 2024 and January 2025. At maturity of each outstanding contract, the Company will receive U.S. Dollars from and pay Euros to the contract counterparty. During the term of each contract, the Company receives interest payments in U.S. Dollars and makes interest payments in Euros based on a notional amount and fixed interest rates determined at contract inception. The Company did not have any cross-currency interest rate swaps outstanding as of December 31, 2018.

The effect of net investment hedges on accumulated other comprehensive income and the consolidated statements of operations for the years ended December 31, 2019, 2018 and 2017 was as follows (in thousands):

Amount of gain or (loss) recognized in accumulated other comprehensive income:
			Years Ended December 31,
			2019				2018				2017
Foreign currency debt			$	47,033			$	218,269			$	(235,292	)
Cross-currency interest rate swaps (included component) (1)			15,514				—				—
Cross-currency interest rate swaps (excluded component) (2)			10,737				—				—
Total			$	73,284			$	218,269			$	(235,292	)
Amount of gain or (loss) recognized in earnings:
	Location of gain or (loss)		Years Ended December 31,
			2019				2018				2017
Cross-currency interest rate swaps (excluded component) (2)	Interest expense		$	19,261			$	—			$	—
Total			$	19,261			$	—			$	—

(1)	Included component represents foreign exchange spot rates.

(2)	Excluded component represents cross-currency basis spread and interest rates.

Cash Flow Hedges. The Company hedges its foreign currency translation exposure for forecasted revenues and expenses in its EMEA region between the U.S. Dollar and the British Pound, Euro, Swedish Krona and Swiss Franc. The foreign currency forward and option contracts that the Company uses to hedge this exposure are designated as cash flow hedges. As of December 31, 2019 and 2018, the total notional amounts of these foreign exchange contracts were $824.8 million and $760.9 million, respectively.

The Company hedges the interest rate exposure created by anticipated fixed rate debt issuances through the use of treasury locks, which are designated as cash flow hedges. During the fourth quarter of 2019, we entered into and settled ten treasury locks designated as cash flow hedges with an aggregate notional amount of $1.5 billion, hedging anticipated fixed-rate debt issuances. The settlement of these contracts during the fourth quarter of 2019, resulted in a gain of $5.1 million, which was deferred and included as a component of other comprehensive income (loss), and is being amortized to interest expense over the life of the associated debt.

The Company enters into intercompany hedging instruments ("intercompany derivatives") with wholly-owned subsidiaries of the Company in order to hedge certain forecasted revenues and expenses denominated in currencies other than the U.S. Dollar. Simultaneously, the Company enters into derivative contracts with unrelated third parties to externally hedge the net exposure created by such intercompany derivatives.

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The effect of cash flow hedges on accumulated other comprehensive income and the consolidated statements of operations for the years ended December 31, 2019, 2018 and 2017 was as follows (in thousands):

Amount of gain or (loss) recognized in accumulated other comprehensive income:
			Years Ended December 31,
			2019				2018				2017
Foreign currency forward and option contracts (included component) (1)			$	(9,945	)		$	58,227			$	(73,437	)
Foreign currency option contracts (excluded component) (2)			(1,807		)		—				—
Treasury locks			4,972				—				—
Total			$	(6,780	)		$	58,227			$	(73,437	)
Amount of gain or (loss) reclassified from accumulated other comprehensive income to income:
			Years Ended December 31,
	Location of gain or (loss)		2019				2018				2017
Foreign currency forward contracts	Revenues		$	80,046			$	(30,603	)		$	20,845
Foreign currency forward contracts	Costs and operating expenses		(41,262		)		15,341				(11,183		)
Treasury locks	Interest Expense		79				—				—
Total			$	38,863			$	(15,262	)		$	9,662
Amount of gain or (loss) excluded from effectiveness testing and included in income:
			Years Ended December 31,
	Location of gain or (loss)		2019				2018				2017
Foreign currency forward contracts	Other income (expense)		$	88			$	16,470			$	3,805
Foreign currency option contracts (excluded component) (2)	Revenues		(1,082		)		—				—
Total			$	(994	)		$	16,470			$	3,805

(1)	Included component represents foreign exchange spot rates.

(2)	Excluded component represents option's time value.

As of December 31, 2019, the Company's foreign currency cash flow hedge instruments had maturity dates ranging from January 2020 to December 2021 and the Company recorded a net gain of $16.3 million within accumulated other comprehensive income (loss) relating to cash flow hedges that will be reclassified to revenues and expenses as they mature in the next 12 months. As of December 31, 2018, the Company's foreign currency cash flow hedge instruments had maturity dates ranging from January 2019 to December 2020 and the Company recorded a net gain of $21.4 million within accumulated other comprehensive income (loss) relating to cash flow hedges that will be reclassified to revenues and expenses as they mature in the next 12 months. As of December 31, 2019, the Company had no interest rate cash flow hedges outstanding. The net gain in accumulated other comprehensive income (loss) to be reclassified to interest expense in the next 12 months for settled interest rate cash flow hedges is $0.7 million.

Derivatives Not Designated as Hedging Instruments

Embedded Derivatives. The Company is deemed to have foreign currency forward contracts embedded in certain of the Company's customer agreements that are priced in currencies different from the functional or local currencies of the parties involved. These embedded derivatives are separated from their host contracts and carried on the Company's balance sheet at their fair value. The majority of these embedded derivatives arise as a result of the Company's foreign subsidiaries pricing their customer contracts in U.S. Dollars.

Economic Hedges of Embedded Derivatives. The Company uses foreign currency forward contracts to manage the foreign exchange risk associated with the Company's customer agreements that are priced in currencies different from the functional or local currencies of the parties involved ("economic hedges of embedded derivatives"). Foreign

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currency forward contracts represent agreements to exchange the currency of one country for the currency of another country at an agreed-upon price on an agreed-upon settlement date.

Foreign Currency Forward Contracts. The Company also uses foreign currency forward contracts to manage the foreign exchange risk associated with certain foreign currency-denominated monetary assets and liabilities. As a result of foreign currency fluctuations, the U.S. Dollar equivalent values of its foreign currency-denominated monetary assets and liabilities change. Gains and losses on these contracts are included in other income (expense), on a net basis, along with the foreign currency gains and losses of the related foreign currency-denominated monetary assets and liabilities associated with these foreign currency forward contracts. As of December 31, 2019 and 2018, the total notional amounts of these foreign currency contracts were $2,467.0 million and $1,500.4 million, respectively.

The following table presents the effect of derivatives not designated as hedging instruments in the Company's consolidated statements of operations (in thousands):

Amount of gain or (loss) recognized in earnings:
			Years Ended December 31,
	Location of gain or (loss)		2019				2018				2017
Embedded derivatives	Revenues		$	63			$	618			$	(6,756	)
Economic hedge of embedded derivatives	Revenues		550				(877		)		1,655
Foreign currency forward contracts	Other income (expense)		36,846				91,233				(68,962		)
Total			$	37,459			$	90,974			$	(74,063	)

Fair Value of Derivative Instruments

The following table presents the fair value of derivative instruments recognized in the Company's consolidated balance sheets as of December 31, 2019 and 2018 (in thousands):

	December 31, 2019								December 31, 2018
	Assets (1)				Liabilities (2)				Assets (1)				Liabilities (2)
Designated as hedging instruments:
Cash flow hedges
Foreign currency forward and option contracts	$	24,853			$	5,898			$	38,606			$	865
Net investment hedges
Cross-currency interest rate swaps	26,251				—				—				—
Total designated as hedging	51,104				5,898				38,606				865
Not designated as hedging instruments:
Embedded derivatives	4,595				2,268				4,656				2,426
Economic hedges of embedded derivatives	1,367				—				525				180
Foreign currency forward contracts	641				27,446				29,287				6,269
Total not designated as hedging	6,603				29,714				34,468				8,875
Total Derivatives	$	57,707			$	35,612			$	73,074			$	9,740

(1)	As presented in the Company's condensed consolidated balance sheets within other current assets and other assets.

(2)	As presented in the Company's condensed consolidated balance sheets within other current liabilities and other liabilities.

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Offsetting Derivative Assets and Liabilities

The Company presents its derivative instruments and the accrued interest related to cross-currency interest rate swaps at gross fair values in the condensed consolidated balance sheets. The Company enters into master netting agreements with its counterparties for transactions other than embedded derivatives to mitigate credit risk exposure to any single counterparty. Master netting agreements allow for individual derivative contracts with a single counterparty to offset in the event of default. For presentation on the consolidated balance sheets, the Company does not offset fair value amounts recognized for derivative instruments or the accrued interest related to cross-currency interest rate swaps under master netting arrangements. The following table presents information related to these offsetting arrangements as of December 31, 2019 and 2018 (in thousands):

	Gross Amounts Offset in Consolidated Balance Sheet
	Gross Amounts				Gross Amounts Offset in the Balance Sheet				Net Amounts				Gross Amounts not Offset in the Balance Sheet				Net
December 31, 2019
Derivative assets	$	76,640			$	—			$	76,640			$	(37,820	)		$	38,820
Derivative liabilities	45,832				—				45,832				(37,820		)		8,012
December 31, 2018
Derivative assets	$	73,074			$	—			$	73,074			$	(6,517	)		$	66,557
Derivative liabilities	9,740				—				9,740				(6,517		)		3,223

9.	Fair Value Measurements

Valuation Methods

Fair value estimates are made as of a specific point in time based on methods using the market approach valuation method which uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities or other valuation techniques. These techniques involve uncertainties and are affected by the assumptions used and the judgments made regarding risk characteristics of various financial instruments, discount rates, estimates of future cash flows, future expected loss experience and other factors.

Cash Equivalents and Investments. The fair value of the Company's investments in money market funds approximates their face value. Such instruments are included in cash equivalents. The Company's money market funds and publicly traded equity securities are classified within Level 1 of the fair value hierarchy because they are valued using quoted prices for identical instruments in active markets. The fair value of the Company's other investments, including certificates of deposit, approximates their face value. The fair value of these investments is priced based on the quoted market price for similar instruments or nonbinding market prices that are corroborated by observable market data. Such instruments are classified within Level 2 of the fair value hierarchy. The Company determines the fair values of its Level 2 investments by using inputs such as actual trade data, benchmark yields, broker/dealer quotes and other similar data, which are obtained from quoted market prices, custody bank, third-party pricing vendors or other sources. The Company uses such pricing data as the primary input to make its assessments and determinations as to the ultimate valuation of its investment portfolio and has not made, during the periods presented, any material adjustments to such inputs. The Company is responsible for its consolidated financial statements and underlying estimates.

The Company uses the specific identification method in computing realized gains and losses. Realized gains and losses from the sale of investments are included within other income (expense) in the Company's consolidated statements of operations. The Company's investments in publicly traded equity securities are carried at fair value. Subsequent to the adoption of ASU 2016-01, unrealized gains and losses on publicly traded equity securities are reported within other income (expense) in the Company's consolidated statements of operations. Prior to the adoption of ASU 2016-01, unrealized gains and losses on publicly traded equity securities were reported in stockholders' equity as a component of other comprehensive income or loss. Upon adoption of ASU 2016-01, the Company recorded a net cumulative effect increase of $2.1 million to retained earnings.

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Derivative Assets and Liabilities. Inputs used for valuations of derivatives are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data. The significant inputs used include spot currency rates and forward points, interest rate curves, and published credit default swap rates of its foreign exchange trading counterparties and other comparable companies. The Company has determined that the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, therefore the derivatives are categorized as Level 2.

During the years ended December 31, 2019 and 2018, the Company did not have any nonfinancial assets or liabilities measured at fair value on a recurring basis.

The Company's financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 were as follows (in thousands):

	Fair Value at December 31,				Fair Value Measurement Using
	2019				Level 1				Level 2
Assets:
Money market and deposit accounts	$	886,547			$	886,547			$	—
Publicly traded equity securities	2,779				2,779				—
Certificates of deposit	7,583				—				7,583
Derivative instruments	57,707				—				57,707
	$	954,616			$	889,326			$	65,290
Liabilities:
Derivative instruments	$	35,612			$	—			$	35,612

The Company's financial assets and liabilities measured at fair value on a recurring basis at December 31, 2018 were as follows (in thousands):

	Fair Value at December 31,				Fair Value Measurement Using
	2018				Level 1				Level 2
Assets:
Money market and deposit accounts	$	119,518			$	119,518			$	—
Publicly traded equity securities	1,717				1,717				—
Certificates of deposit	2,823				—				2,823
Derivative instruments	73,074				—				73,074
	$	197,132			$	121,235			$	75,897
Liabilities:
Derivative instruments	$	9,740			$	—			$	9,740

The Company did not have any Level 3 financial assets or financial liabilities during the years ended December 31, 2019 and 2018.

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10.	Leases

Significant Lease Transactions

Hong Kong 4 ("HK4") Data Center

In August 2018, the Company entered into a lease agreement with the landlord to lease the remaining floors of the HK4 Data Center. The lease did not commence until May 2019. The lease has an initial term of 9.4 years and one 10-year renewal option which the Company determined it was not reasonably certain to exercise. The Company therefore excluded the renewal option from the lease term. The Company assessed the lease classification of the HK4 lease at the commencement date and determined the lease should be accounted for as an operating lease. During the three months ended June 30, 2019, the Company recorded operating lease ROU asset and liability of 317.3 million Hong Kong dollars, or $40.6 million at the exchange rate in effect on June 30, 2019.

Seoul 1 ("SL1") Data Center

In October 2018, the Company entered into a lease agreement with the landlord for several leased spaces in SL1 Data Center. Phase 1 commenced in August 2019 with an initial term of 5 years. The lease includes three 5-year renewal options. The Company concluded that one renewal option of 5 years is reasonably certain to be exercised after considering all relevant factors that create an economic incentive for the Company. The Company assessed the lease classification of the SL1 lease at the commencement date and determined the lease should be accounted for as a finance lease. During the three months ended September 30, 2019, the Company recorded finance lease ROU asset and liability of 35,747 million Korean Won and 34,804 million Korean Won, respectively, or $29.9 million and $29.1 million, respectively, at the exchange rate in effect on September 30, 2019.

Tokyo 11 ("TY11") Data Center

In July 2019, the Company entered into two new lease agreements for building I and building II in TY11 Data Center for a lease term of 28.6 years. At the same time, the Company terminated the original lease agreement of certain leased space in building I. The new spaces in building I and building II provide additional right-of-use assets that are not included in the original lease agreement and the lease payments for the new spaces are commensurate with the stand-alone price of the additional right-of-use assets. As a result, the Company concluded the new spaces in building I and building II met the criteria to be treated as a separate contract and did not modify the accounting treatment of the original leased space. The Company assessed the lease classification of TY11 leases at the commencement date and determined that the leases for both the new spaces in building I and building II should be accounted for as finance leases. During the three months ended September 30, 2019, the Company recorded finance lease ROU asset and liability of ¥6,922.3 million in aggregate for both new spaces in building I and II, or approximately $64.0 million at the exchange rate in effect on September 30, 2019.

Singapore 4 ("SG4") Data Center

In July 2019, the Company entered into a lease agreement with the landlord to lease the land and building for its new SG4 Data Center. The initial lease term is 25 years with a renewal option to extend the lease until 2053. The Company determined the renewal option was not reasonably certain to exercise; therefore, the renewal option was not included in the lease term. The Company assessed the lease classification of the SG4 lease at the commencement date and determined that the lease for the building and land components should be accounted for as a finance lease and an operating lease, respectively. During the three months ended September 30, 2019, the Company recorded finance lease ROU asset and liability of 75.5 million Singapore dollars, or approximately $54.6 million, and operating lease ROU asset and liability of 48.5 million Singapore dollars, or approximately $35.1 million, at the exchange rate in effect on September 30, 2019.

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Silicon Valley 3 ("SV3") Data Center

In July 2019, the Company entered into a lease agreement with the landlord to extend the term of the SV3 lease for an additional 12 years. The lease includes two 5-year renewal options which the Company determined it was not reasonably certain to exercise; therefore, the renewal options were not included in the lease term. The SV3 lease renewal is accounted for as a lease modification. The Company assessed the lease classification of the SV3 lease at modification date and determined that the lease for the building and land components should be accounted for as a finance lease and an operating lease, respectively. During the three months ended September 30, 2019, the Company recorded incremental finance lease ROU asset and liability of $39.9 million. The Company also recorded an incremental operating lease ROU asset and liability of $13.1 million.

Hong Kong 1 ("HK1") Data Center

In October 2019, the Company extended certain leased spaces in HK1 Data Center for another 18 years. The HK1 lease is accounted for as a lease modification. The Company assessed the lease classification of the HK1 lease at modification date and determined that the lease should be accounted for as a finance lease. The Company recorded finance lease ROU asset and liability of 426.0 million Hong Kong dollars, or approximately $54.7 million at the exchange rate in effect on December 31, 2019.

Toronto 2 ("TR2") Data Center

In October 2019, the Company entered into an agreement with the landlord to purchase the TR2 Data Center for 223 million Canadian dollars, or approximately $171.8 million at the exchange rate in effect on December 31, 2019. The deal was closed on December 18, 2019. As part of the transaction, the Company assumed the outstanding mortgage financing on the property of 56.9 million Canadian dollars, or approximately $43.8 million, at the exchange rate in effect on December 31, 2019 (see Note 11). The cash consideration was reduced by the outstanding mortgage amount. The Company had previously accounted for the TR2 land and building as operating and finance leases, respectively. Upon the purchase, the Company effectively terminated the leases and settled the operating and finance lease liabilities of 13.1 million Canadian dollars and 61.7 million Canadian dollars, respectively, or approximately $10.1 million and $47.5 million, respectively, at the exchange rate in effect on December 31, 2019. The Company also derecognized operating lease and finance lease ROU assets of 13.1 million Canadian dollars and 49.2 million Canadian dollars, respectively, or approximately $10.1 million and $37.9 million, respectively, at the exchange rate in effect on December 31, 2019. The Company recorded land and building of 135.3 million Canadian dollars and 85.0 million Canadian dollars, respectively, or approximately $104.3 million and $65.5 million, respectively, at the exchange rate in effect on December 31, 2019.

London 10 ("LD10") Data Center

In October 2019, the Company signed a sub-lease agreement with the Joint Venture to sub-lease a portion of Equinix's former LD10 Data Center for 15 years. The sub-lease agreement includes one 5-year renewal option which the Company determined it was not reasonably certain to exercise; therefore, the renewal option was not included in the lease term. Additionally, Equinix and the Joint Venture signed an agreement for the Joint Venture to operate the leased space for 15 years. The Company determined that the sub-lease and other agreements should be combined into a single contract as the contracts were negotiated at the same time and with the same commercial objective to operate a data center. The Company assessed the lease classification of the lease at the commencement date and determined the lease should be accounted for as a finance lease. The Company recorded finance lease ROU asset and liability of £103.2 million, or approximately $136.7 million at the exchange rate in effect on December 31, 2019.

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Lease Expenses

The components of lease expenses are as follows (in thousands):

	Twelve Months Ended December 31, 2019
Finance lease cost
Amortization of right-of-use assets (1)	$	82,893
Interest on lease liabilities	110,688
Total finance lease cost	193,581
Operating lease cost	219,021
Total lease cost	$	412,602

 

⁽¹⁾ Amortization of right-of-use assets is included with depreciation expense, and is recorded within cost of revenues, sales and marketing and general and administrative expenses in the consolidated statements of operations.

Other Information

Other information related to leases is as follows (in thousands, except years and percent):

	Twelve Months Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	107,000
Operating cash flows from operating leases	210,848
Financing cash flows from finance leases	126,486
Right-of-use assets obtained in exchange for lease obligations: (1)
Finance leases	$	387,808
Operating leases	145,025
	As of December 31, 2019
Weighted-average remaining lease term - finance leases (2)	15 years
Weighted-average remaining lease term - operating leases (2)	13 years
Weighted-average discount rate - finance leases	9		%
Weighted-average discount rate - operating leases	4		%
Finance lease assets (3)	$	1,277,614

⁽¹⁾ Represents all non-cash changes in ROU assets.

⁽²⁾ Includes lease renewal options that are reasonably certain to be exercised.

⁽³⁾ Finance lease assets, net of accumulated amortization of $474.8 million, are recorded within property, plant and equipment, net on the consolidated balance sheets.

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Maturities of Lease Liabilities

Maturities of lease liabilities under Topic 842 as of December 31, 2019 are as follows (in thousands):

	Operating Leases				Finance Leases				Total
2020	$	193,663			$	173,994			$	367,657
2021	191,954				176,357				368,311
2022	183,908				176,992				360,900
2023	168,353				178,289				346,642
2024	156,502				177,338				333,840
Thereafter	1,106,944				1,739,235				2,846,179
Total lease payments	2,001,324				2,622,205				4,623,529
Plus amount representing residual property value	—				18,164				18,164
Less imputed interest	(540,062		)		(1,134,248		)		(1,674,310		)
Total	$	1,461,262			$	1,506,121			$	2,967,383

For the year ended December 31, 2018, the Company's operating lease, capital lease and other financing obligations under ASC Topic 840 are summarized as follows (in thousands):

	Capital Lease Obligations				Other Financing Obligations (1)				Total Capital Lease and Other Financing Obligations				Operating Leases
2019	$	103,859			$	80,292			$	184,151			$	187,280
2020	97,326				73,266				170,592				179,515
2021	95,414				73,672				169,086				166,159
2022	94,954				73,856				168,810				158,115
2023	95,463				69,423				164,886				147,677
Thereafter	878,755				722,496				1,601,251				1,130,494
Total minimum lease payments	1,365,771				1,093,005				2,458,776				1,969,240
Plus amount representing residual property value	—				389,643				389,643				—
Less amount representing interest	(602,026		)		(727,472		)		(1,329,498		)		—
Present value of net minimum lease payments	763,745				755,176				1,518,921				1,969,240
Less current portion	(43,498		)		(34,346		)		(77,844		)		—
Total	$	720,247			$	720,830			$	1,441,077			$	1,969,240

⁽¹⁾ Other financing obligations are primarily related to build-to-suit arrangements. 

The Company entered into lease agreements with various landlords primarily for data center spaces and ground lease which have not yet commenced as of December 31, 2019. These leases will commence between fiscal years 2020 and 2022, with lease terms of 10 to 49 years and a total lease commitment of approximately $608.1 million.

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11.	Debt Facilities

Mortgage and Loans Payable

The Company's mortgage and loans payable consisted of the following as of December 31 (in thousands):

	2019				2018
Term loans	$	1,287,151			$	1,344,482
Mortgage payable and other loans payable	82,967				44,042
	1,370,118				1,388,524
Less the amount representing unamortized debt discount and debt issuance cost	(4,849		)		(6,614		)
Add the amount representing unamortized mortgage premium	1,768				1,882
	1,367,037				1,383,792
Less current portion	(77,603		)		(73,129		)
	$	1,289,434			$	1,310,663

Senior Credit Facility

On December 12, 2017, the Company entered into a credit agreement with a group of lenders for a $3,000.0 million credit facility ("Senior Credit Facility"), comprised of a $2,000.0 million senior unsecured multicurrency revolving credit facility ("Revolving Facility") and an approximately $1,000.0 million senior unsecured multicurrency term loan facility ("Term Loan Facility"). The Senior Credit Facility contains customary covenants, including financial covenants which require the Company to maintain certain financial coverage and leverage ratios, as well as customary events of default. The Senior Credit Facility has a 5 year term, maturing on December 12, 2022.

Revolving Facility

The Revolving Facility allows the Company to borrow, repay and reborrow over its term. The Revolving Facility provides a sublimit for the issuance of letters of credit of up to $250.0 million at any one time. Borrowings under the Revolving Facility bear interest at a rate based on a benchmark rate defined in the credit agreement plus a margin that can vary from 0.85% to 1.40% or, at the Company's option, the base rate, which is defined as the highest of (a) the Federal Funds Rate plus 0.5%, (b) the Bank of America prime rate and (c) one-month LIBOR plus 1% plus a margin that can vary from 0.0% to 0.4%. The Company is required to pay a quarterly letter of credit fee on the face amount of each letter of credit, which fee is based on the same margin that applies from time to time to borrowings under the Revolving Facility. The Company is also required to pay a quarterly facility fee ranging from 0.15% to 0.30% per annum based on the total Revolving Facility amount.

Term Loan Facility

On December 12, 2017, the Company borrowed £500.0 million and SEK 2,800.0 million under the Term Loan Facility, or approximately $997.1 million at the exchange rates in effect on that date. The Company is required to repay the Term Loan Facility at the rate of 5% of the original principal amount per annum with the remaining balance to be repaid in full at the maturity of the Senior Credit Facility. The Term Loan Facility bears interest at a rate based on LIBOR plus a margin that can vary from 1.00% to 1.70%. As of December 31, 2019, the Company had £456.3 million and SEK2,555.0 million, or approximately $877.0 million in U.S. dollars at the exchange rates in effect as of December 31, 2019, outstanding under the Term Loan Facility with a weighted average effective interest rate of 1.86% per annum. Debt issuance costs related to the Term Loan Facility, net of amortization, were $1.7 million as of December 31, 2019.

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On July 26, 2018, the Company entered into an amendment to its Senior Credit Facility. The amendment provided for a senior unsecured term loan in an aggregate principal amount of ¥47.5 billion (the "JPY Term Loan"). On July 31, 2018, the Company drew down the full ¥47.5 billion of the JPY Term Loan, or approximately $424.7 million at the exchange rate effective on July 31, 2018, and prepaid the remaining principal of its existing Japanese Yen Term Loan of ¥43.8 billion or approximately $391.3 million. The Company is required to repay the JPY Term Loan at the rate of 5% of the original principal amount per annum with the remaining balance to be repaid in full at the maturity of the Senior Credit Facility. The JPY Term Loan bears interest at a rate based on LIBOR plus a margin that can vary from 1.00% to 1.70% and contains customary covenants consistent with the Senior Credit Facility. As of December 31, 2019, total outstanding borrowings under the JPY Term Loan were ¥44.5 billion, or approximately $410.1 million at the exchange rate effective on that date, with an effective interest rate of 1.74%. Debt issuance costs, net of amortization, related to the JPY Term Loan were $3.2 million as of December 31, 2019.

Mortgage Payable

In October 2013, as a result of the Frankfurt Kleyer 90 Carrier Hotel Acquisition, the Company assumed a mortgage payable of $42.9 million with an effective interest rate of 4.25%. The mortgage payable has monthly principal and interest payments and has an expiration date of August 2022.

In December 2019, as a result of the TR2 Data Center purchase as described in Note 10 above, the Company assumed a mortgage payable of $43.8 million with an effective interest rate of 3.63%. The mortgage payable has monthly principal and interest payments and has an expiration date of November 2029.

Senior Notes

The Company's senior notes consisted of the following as of December 31 (in thousands):

						2019							2018
Senior Notes		Issuance Date		Maturity Date		Amount				Effective Rate			Amount				Effective Rate
5.000% Infomart Senior Notes		April 2018		April 2019 - April 2021		$	450,000			4.46	%		$	750,000			4.40	%
5.375% Senior Notes due 2022		November 2014		January 2022		343,711				5.56	%		750,000				5.56	%
5.375% Senior Notes due 2023		March 2013		April 2023		—				—	%		1,000,000				5.51	%
2.625% Senior Notes due 2024		November 2019		November 2024		1,000,000				2.79	%		—				—	%
2.875% Euro Senior Notes due 2024		March 2018		March 2024		841,500				3.08	%		859,125				3.08	%
5.750% Senior Notes due 2025		November 2014		January 2025		—				—	%		500,000				5.88	%
2.875% Euro Senior Notes due 2025		September 2017		October 2025		1,122,000				3.04	%		1,145,500				3.04	%
2.900% Senior Notes due 2026		November 2019		November 2026		600,000				3.04	%		—				—	%
5.875% Senior Notes due 2026		December 2015		January 2026		1,100,000				6.03	%		1,100,000				6.03	%
2.875% Euro Senior Notes due 2026		December 2017		February 2026		1,122,000				3.04	%		1,145,500				3.04	%
5.375% Senior Notes due 2027		March 2017		May 2027		1,250,000				5.51	%		1,250,000				5.51	%
3.200% Senior Notes due 2029		November 2019		November 2029		1,200,000				3.30	%		—				—	%
						9,029,211							8,500,125
Less amount representing unamortized debt discount and debt issuance cost						(78,030		)					(75,372		)
Add amount representing unamortized debt premium						1,716							5,031
						8,952,897							8,429,784
Less current portion						(643,224		)					(300,999		)
						$	8,309,673						$	8,128,785

2.625% Senior Notes due 2024, 2.900% Senior Notes due 2026 and 3.200% Senior Notes due 2029

On November 18, 2019, the Company issued $1.0 billion aggregate principal amount of 2.625% senior notes due 2024 (the “2024 Notes”), $600.0 million aggregate principal amount of 2.900% senior notes due 2026 (the “2026 Notes”) and $1.2 billion aggregate principal amount of 3.200% senior notes due 2029 (the “2029 Notes”). Interest on these notes is payable semi-annually on May 18 and November 18 of each year, commencing on May 18, 2020. Debt issuance

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costs and debt discounts related to the 2024 Notes, the 2026 Notes and the 2029 Notes were $8.1 million, $5.9 million and $11.5 million, respectively.

Tender and Redemption of 5.375% Senior Notes due 2022, 5.375% Senior Notes due 2023 and 5.750% Senior Notes due 2025

On November 6, 2019, the Company announced a cash tender offer to purchase any and all of its outstanding 5.375% Senior Notes due 2022 (the “2022 Notes”), 5.375% Senior Notes due 2023 (the “2023 Notes”) and 5.750% Senior Notes due 2025 (the “2025 Notes”), with an aggregated principal amount of $2.25 billion. On November 18, 2019, the Company closed the tender offer and completed the purchase of $1.24 billion in aggregate principal amount of the 2022, 2023 and 2025 Notes. In connection with this tender offer, the Company paid a tender premium of $27.2 million. On December 16, 2019, the Company redeemed the remaining $662.7 million principal amount of the 2023 and 2025 Notes. The purchase of the 2022, 2023 and 2025 Notes under the tender offer and the subsequent redemption of the 2023 and 2025 Notes were funded with a portion of the net cash proceeds from the issuance of 2024, 2026 and 2029 Notes as described above.

All of the Company's senior notes are unsecured and rank equal in right of payment to the Company's existing or future senior indebtedness and senior in right of payment to the Company's existing and future subordinated indebtedness. Interest on the senior notes is paid semi-annually in arrears. The senior notes are effectively subordinated to all of the existing and future secured debt, including debt outstanding under any bank facility or secured by any mortgage, to the extent of the assets securing such debt. They are also structurally subordinated to any existing and future indebtedness and other liabilities (including trade payables) of any of the Company's subsidiaries.

Each series of senior notes is governed by an indenture and a supplemental indenture between the Company and U.S. Bank National Association, as trustee. These supplemental indentures contain covenants that limit the Company's ability and the ability of its subsidiaries to, among other things:

•	purchase, redeem or retire capital stock or subordinated debt;

•	incur liens (1);

•	enter into sale-leaseback transactions (1);

•	make investments; and

•	merge or consolidate with any other person (1).

(1)	The supplemental indentures for the 5.000% Infomart Senior Notes, 2.875% Euro Senior Notes due 2024, 2.625% Senior Notes due 2024, 2.875% Euro Senior Notes due 2026, 2.900% Senior Notes due 2026, and 3.200% Senior Notes due 2029 only contain covenants footnoted with (1).

As of December 31, 2019, the Company was in compliance with all covenants. Subject to compliance with the limitations described above, the Company may issue an unlimited principal amount of additional notes at later dates under the same indenture as the senior notes.

The Company is not required to make any mandatory redemption with respect to the senior notes; however, upon the event of a change in control, the Company may be required to offer to purchase the senior notes.

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Optional Redemption Schedule

Each series of the Company's senior notes, with the exception of 5.000% Infomart Senior Notes, provide for optional redemption. Six series of the Company’s senior notes provide for optional redemption as summarized below:

Senior Notes Description	Early Equity Redemption Price (1)	First Scheduled Redemption Date (2)	First Scheduled Redemption Price	Second Year Redemption Price	Third Year Redemption Price	Fourth Year (if scheduled) Redemption Price
5.375% Senior Notes due 2022	105.375%	January 1, 2018	104.031%	102.688%	101.344%	100.000%
2.875% Euro Senior Notes due 2024	102.875%	September 15, 2020	101.438%	100.719%	100.000%
2.875% Euro Senior Notes due 2025	102.875%	October 1, 2020	101.438%	100.719%	100.000%
5.875% Senior Notes due 2026	105.875%	January 15, 2021	102.938%	101.958%	100.979%	100.000%
2.875% Euro Senior Notes due 2026	102.875%	February 1, 2021	101.438%	100.719%	100.000%
5.375% Senior Notes due 2027	105.375%	May 15, 2022	102.688%	101.792%	100.896%	100.000%

(1)

Within 90 days of the closing of one or more equity offerings and at any time prior to the first scheduled redemption date, the Company may redeem up to 35% of the aggregate principal amount of any series of senior notes outstanding, at the respective early equity redemption price, plus accrued and unpaid interest to the redemption date, provided that at least 65% of the aggregate principal amount of the senior notes issued in such series remains outstanding immediately after such redemption(s).

(2)

On or after the first scheduled redemption date, the Company may redeem all or a part of a series of senior notes at the first scheduled redemption price plus accrued and unpaid interest thereon, if redeemed during the 12 month period beginning on the first scheduled redemption date and at reduced scheduled redemption prices during the 12 or 18 month periods beginning on the anniversaries of the first scheduled redemption date.

At any time prior to the first scheduled redemption date, the Company may redeem all or a part of any series of senior notes at a redemption price equal to 100% of the principal amount of such senior notes redeemed plus an applicable premium and accrued and unpaid interest, subject to the rights of the holders of record of such senior notes on the relevant record date to receive interest due on the relevant interest payment date.

With respect to the 2024 Notes, the 2026 Notes and the 2029 Notes, the Company may redeem at its election, at any time or from time to time, some or all of the notes of any series before they mature. The redemption price will equal the sum of (1) an amount equal to one hundred percent (100%) of the principal amount of the notes being redeemed plus accrued and unpaid interest up to, but not including, the redemption date and (2) a make-whole premium. If the 2024 Notes are redeemed on or after October 18, 2024, the 2026 Notes are redeemed on or after September 18, 2026, or the 2029 Notes are redeemed on or after August 18, 2029, in each case, the redemption price will not include a make-whole premium for the applicable notes.

Loss on Debt Extinguishment

During the year ended December 31, 2019, the Company recorded $52.8 million of loss on debt extinguishment primarily comprised of:

•	$52.9 million of loss on debt extinguishment from the tender and subsequent redemption of the 2022, 2023 and 2025 Notes, which included $43.3 million tender and redemption premium that was paid in cash and $9.6 million related to the write-off of unamortized debt issuance costs.

During the year ended December 31, 2018, the Company recorded $51.4 million of loss on debt extinguishment comprised of:

•	$17.1 million of loss on debt extinguishment as a result of amendments to leases impacting the related financing obligations;

•	$19.5 million of loss on debt extinguishment from the settlement of financing obligations as a result of the Infomart Dallas Acquisition;

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•	$12.6 million of loss on debt extinguishment as a result of the settlement of financing obligations for properties purchased; and

•	$2.2 million of loss on debt extinguishment as a result of the redemption of the Japanese Yen Term Loan.

During the year ended December 31, 2017, the Company recorded $65.8 million of loss on debt extinguishment comprised of:

•	$14.6 million of loss on debt extinguishment from the redemption of senior notes, which included $12.2 million redemption premium that was paid in cash and $2.4 million related to the write-off of unamortized debt issuance costs;

•	$22.5 million of loss on debt extinguishment from the redemption of term loans;

•	$16.7 million of loss on debt extinguishment as a result of amendments to leases and financing obligations; and

•	$12.0 million of loss on debt extinguishment from the settlement of financing obligations as a result of properties purchased.

Maturities of Debt Instruments

The following table sets forth maturities of the Company's debt, including mortgage and loans payable, and senior notes, gross of debt issuance costs, debt discounts and debt premiums, as of December 31, 2019 (in thousands):

Years ending:
2020	$	721,314
2021	227,654
2022	1,180,017
2023	6,683
2024	1,847,714
Thereafter	6,417,715
	$	10,401,097

Fair Value of Debt Instruments

The following table sets forth the estimated fair values of the Company's mortgage and loans payable and senior notes as of December 31 (in thousands):

	2019				2018
Mortgage and loans payable	$	1,378,429			$	1,389,632
Senior notes	9,339,497				8,422,211

The fair values of the mortgage and loans payable and 5.000% Infomart Senior Notes, which were not publicly traded, were estimated by considering the Company's credit rating, current rates available to the Company for debt of the same remaining maturities and terms of the debt (level 2). The fair value of the senior notes, which were traded in the public debt market, was based on quoted market prices (level 1).

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Interest Charges

The following table sets forth total interest costs incurred and total interest costs capitalized for the years ended December 31 (in thousands):

	2019				2018				2017
Interest expense	$	479,684			$	521,494			$	478,698
Interest capitalized	32,173				19,880				22,625
Interest charges incurred	$	511,857			$	541,374			$	501,323

Total interest paid, net of capitalized interest, during the years ended December 31, 2019, 2018 and 2017 was $521.6 million, $476.9 million and $422.2 million, respectively.

12.	Stockholders' Equity

The Company's authorized share capital is 300,000,000 shares of common stock and 100,000,000 shares of preferred stock, of which 25,000,000 is designated Series A, 25,000,000 is designated as Series A-1 and 50,000,000 is undesignated. As of December 31, 2019 and 2018, the Company had no preferred stock issued and outstanding.

Common Stock

In March 2017, the Company issued and sold 6,069,444 shares of its common stock in a public offering pursuant to a registration statement and a related prospectus and prospectus supplement. The Company received net proceeds of approximately $2,126.3 million, net of underwriting discounts, commissions and offering expenses. In March 2019, the Company issued and sold 2,985,575 shares of common stock in a public offering pursuant to a registration statement and a related prospectus and prospectus supplement. The Company received net proceeds of approximately $1,213.4 million, net of underwriting discounts, commissions and offering expenses.

In August 2017, the Company established an "at the market" equity offering program (the "2017 ATM Program"), under which the Company may, from time to time, offer and sell shares of its common stock to or through sales agents up to an aggregate of $750.0 million. For the year ended December 31, 2018 and 2017, the Company sold 930,934 shares and 763,201 shares, respectively, for approximately $388.2 million and $355.1 million, respectively, net of payment of commissions to the sales agents and estimated equity offering costs. As of December 31, 2018, no shares remained available for sale under the 2017 ATM Program. In December 2018, the Company established another ATM program, under which it may, from time to time, offer and sell up to an aggregate of $750.0 million of its common stock to or through sales agents in "at the market" transactions (the "2018 ATM Program"). For the year ended December 31, 2019, the Company sold 903,555 shares for approximately $447.5 million, net of payment of commissions to sales agents and other offering expenses, under the 2018 ATM Program.

As of December 31, 2019, the Company had reserved the following authorized but unissued shares of common stock for future issuances:

Common stock options and restricted stock units	3,334,130
Common stock employee purchase plans	2,973,785
Total	6,307,915

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Accumulated Other Comprehensive Loss

The changes in accumulated other comprehensive loss, net of tax, by components are as follows (in thousands):

	December 31, 2016				Net Change				December 31, 2017				Net Change				Cumulative Effect Adjustment				December 31, 2018				Net Change				December 31, 2019
Foreign currency translation adjustment ("CTA") gain (loss)	$	(1,031,129	)		$	454,269			$	(576,860	)		$	(421,743	)		$	—			$	(998,603	)		$	(58,315	)		$	(1,056,918	)
Unrealized gain (loss) on cash flow hedges (1)	30,704				(54,895		)		(24,191		)		43,671				—				19,480				(3,842		)		15,638
Net investment hedge CTA gain (loss) (1)	49,989				(235,292		)		(185,303		)		219,628				—				34,325				73,294				107,619
Unrealized gain (loss) on available for sale securities (2)	2,110				14				2,124				—				(2,124		)		—				—				—
Net actuarial gain (loss) on defined benefit plans (3)	(816		)		(143		)		(959		)		55				—				(904		)		(48		)		(952		)
	$	(949,142	)		$	163,953			$	(785,189	)		$	(158,389	)		$	(2,124	)		$	(945,702	)		$	11,089			$	(934,613	)

(1)	Refer to Note 8 for a discussion of the amounts reclassified from accumulated other comprehensive loss to net income.

(2)

Upon adoption of ASU 2016-01 during the three months ended March 31, 2018, the Company recorded a net cumulative effect adjustment of $2.1 million from accumulated other comprehensive loss to retained earnings. The realized gains and losses reclassified from accumulated other comprehensive loss to net income as a result of sale of available for sale securities were not significant for the years ended December 31, 2017 and 2016.

(3)

The Company has a defined benefit pension plan covering all employees in one country where such plans are mandated by law. The Company does not have any defined benefit plans in any other countries. The unamortized gain (loss) on defined benefit plans includes gains or losses resulting from a change in the value of either the projected benefit obligation or the plan assets resulting from a change in an actuarial assumption, net of amortization.

Changes in foreign currencies can have a significant impact to the Company's consolidated balance sheets (as evidenced above in the Company's foreign currency translation loss), as well as its consolidated results of operations, as amounts in foreign currencies are generally translated into more U.S. dollars when the U.S. dollar weakens or less U.S. dollars when the U.S. dollar strengthens. As of December 31, 2019, the U.S. dollar was generally stronger relative to certain of the currencies of the foreign countries in which the Company operates as compared to December 31, 2018. This overall strengthening of the U.S. dollar had an overall negative impact on the Company's consolidated financial position because the foreign denominations translated into less U.S. dollars as evidenced by the increase in foreign currency translation loss for the year ended December 31, 2019 as reflected in the above table. In future periods, the volatility of the U.S. dollar as compared to the other currencies in which the Company does business could have a significant impact on its consolidated financial position and results of operations including the amount of revenue that the Company reports in future periods.

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Dividends

During the years ended December 31, 2019, 2018 and 2017, the Company's Board of Directors declared quarterly dividends whose treatment for federal income tax purposes were as follows:

Declaration Date		Record Date		Payment Date		Total Distribution (1)				Nonqualified Ordinary Dividend (2)				Total Distribution Amount
						(per share)								(in thousands)
Fiscal 2019
2/13/2019		2/27/2019		3/20/2019		$	2.460000			$	2.460000			$	198,933
5/1/2019		5/22/2019		6/19/2019		2.460000				2.460000				207,949
7/31/2019		8/21/2019		9/18/2019		2.460000				2.460000				209,226
10/30/2019		11/20/2019		12/11/2019		2.460000				2.460000				209,785
Total						$	9.840000			$	9.840000			$	825,893
Fiscal 2018
2/14/2018		2/26/2018		3/21/2018		$	2.280000			$	2.280000			$	180,640
5/2/2018		5/23/2018		6/20/2018		2.280000				2.280000				181,207
8/8/2018		8/22/2018		9/19/2018		2.280000				2.280000				182,304
11/1/2018		11/14/2018		12/12/2018		2.280000				2.280000				183,297
Total						$	9.120000			$	9.120000			$	727,448
Fiscal 2017
2/15/2017		2/27/2017		3/22/2017		$	2.000000			$	2.000000			$	143,275
4/26/2017		5/24/2017		6/21/2017		2.000000				2.000000				155,824
8/2/2017		8/23/2017		9/20/2017		2.000000				2.000000				156,055
11/1/2017		11/15/2017		12/13/2017		2.000000				2.000000				156,931
Total						$	8.000000			$	8.000000			$	612,085

(1)	Common stock dividends are characterized for federal income tax purposes as nonqualified ordinary dividend, qualified ordinary dividend, capital gains or return of capital. During the years ended December 31, 2019, 2018 and 2017, the Company did not classify any portion of the distributions as qualified ordinary dividend, capital gains or return of capital.

(2)	All 2019 and 2018 nonqualified ordinary dividends are eligible for the 20% deduction generally allowable to non-corporate shareholders under Internal Revenue Code Section 199A.

In addition, as of December 31, 2019, for dividends and special distributions attributed to the restricted stock units, the Company recorded a short term dividend payable of $9.0 million and a long term dividend payable of $7.1 million for the restricted stock units that have not yet vested. As of December 31, 2018, for dividends and special distributions attributed to the restricted stock units, the Company recorded a short term dividend payable of $8.8 million and a long term dividend payable of $6.5 million for the restricted stock units that have not yet vested.

13.	Stock-Based Compensation

Equity Compensation Plans

As of December 31, 2019, The Company’s equity compensation plans include:

•

2000 Equity Incentive Plan: Under the 2000 Equity Incentive Plan, nonstatutory stock options, restricted shares, restricted stock units and stock appreciation rights may be granted to employees, outside directors and consultants at not less than 85% of the fair value on the date of grant, and incentive stock options may be granted to employees at not less than 100% of the fair value on the date of grant. Equity awards granted under the 2000 Equity Incentive Plan generally vest over 4 years.

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•

2000 Director Option Plan: Under the 2000 Director Option Plan, each non-employee board member who was not previously an employee of the Company would receive an automatic initial nonstatutory stock option grant as well as an annual non-statutory stock option grant on the date of the Company's regular Annual Meeting of Stockholders. On December 18, 2008, the Company's Board of Directors passed resolutions eliminating all automatic stock option grant mechanisms under the 2000 Director Option Plan and replaced them with an automatic restricted stock unit grant mechanism under the 2000 Equity Incentive Plan.

•	2001 Supplemental Stock Plan: Under the 2001 Supplemental Stock Plan, non-statutory stock options and restricted shares/restricted stock units may be granted to consultants and employees who are not executive officers or board members, at not less than 85% of the fair value on the date of grant. Current stock options granted under the 2001 Supplemental Stock Plan generally vest over 4 years.

•

2004 Employee Stock Purchase Plan (2004 Purchase Plan): The 2004 Purchase Plan permits eligible employees to purchase common stock on favorable terms via payroll deductions of up to 15% of the employee's cash compensation, subject to certain share and statutory dollar limits. Two overlapping offering periods commence during each calendar year, on each February 15 and August 15 or such other periods or dates as determined by the Compensation Committee from time to time, and the offering periods last up to 24 months with a purchase date every 6 months. The price of each share purchased is 85% of the lower of a) the fair value per share of common stock on the last trading day before the commencement of the applicable offering period or b) the fair value per share of common stock on the purchase date.

The Equity compensation plans are administered by the Compensation Committee of the Board of Directors (the "Compensation Committee"), and the Compensation Committee may terminate or amend these plans, with approval of the stockholders as may be required by applicable law, at any time. As of December 31, 2019, shares reserved and available for issuance under the equity compensation plans are as follows:

	Shares reserved			Shares available for grant
2000 Equity Incentive Plan	16,636,172			1,255,261
2000 Director Option Plan	594,403			505,646
2001 Supplemental Stock Plan	1,494,275			260,498
2004 Purchase Plan	5,392,206			2,973,785

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Restricted Stock Units

Since 2008, the Company primarily grants restricted stock units to its employees, including executives and non-employee directors, in lieu of stock options. The Company generally grants restricted stock units that have a service condition only or have both a service and performance condition. Each restricted stock unit is not considered issued and outstanding and does not have voting rights until it is converted into one share of the Company's common stock upon vesting. Restricted stock unit activity is summarized as follows:

	Number of Shares Outstanding			Weighted Average Grant Date Fair Value per Share				Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value (1) (Dollars in Thousands)
Restricted stock units outstanding, December 31, 2016	1,347,879			$	192.59
Restricted stock units granted	658,196			389.60
Restricted stock units released, vested	(606,064	)		260.75
Special distribution shares released	(15,667	)		243.06
Restricted stock units canceled	(79,451	)		313.83
Special distribution shares canceled	(1,002	)		282.49
Restricted stock units outstanding, December 31, 2017	1,303,891			252.30
Restricted stock units granted	704,249			387.31
Restricted stock units released, vested	(593,528	)		299.07
Special distribution shares released	(13,880	)		283.14
Restricted stock units canceled	(173,460	)		336.75
Special distribution shares canceled	(485	)		295.77
Restricted stock units outstanding, December 31, 2018	1,226,787			361.22
Restricted stock units granted	779,478			448.16
Restricted stock units released, vested	(549,259	)		362.66
Special distribution shares released	(1,781	)		295.31
Restricted stock units canceled	(142,477	)		364.42
Special distribution shares canceled	(23	)		297.04
Restricted stock units outstanding, December 31, 2019	1,312,725			$	411.99			1.29		$	766,238

(1)	The intrinsic value is calculated based on the market value of the stock as of December 31, 2019.

The total fair value of restricted stock units vested and released during the years ended December 31, 2019, 2018 and 2017 was $269.1 million, $249.8 million and $259.1 million, respectively.

Employee Stock Purchase Plan

The Company provides the following disclosures for the 2004 Purchase Plan as of December 31 (dollars, except shares):

	2019				2018				2017
Weighted-average purchase price per share	$	354.72			$	341.48			$	250.65
Weighted average grant-date fair value per share of shares purchased	$	104.84			$	90.04			$	72.21
Number of shares purchased	146,640				145,346				162,076

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The Company uses the Black-Scholes option-pricing model to determine the fair value of shares under the 2004 Purchase Plan with the following assumptions during the years ended December 31:

	2019			2018			2017
Range of dividend yield	2.07 - 2.09%			1.97 - 2.00%			2.10 - 2.31%
Range of risk-free interest rate	1.55 - 2.58%			1.79 - 2.68%			0.70 - 1.35%
Range of expected volatility	19.27 - 25.55%			19.04 - 24.33%			16.42 - 24.27%
Weighted-average expected volatility	22.95	%		20.74	%		20.30	%
Weighted average expected life (in years)	1.24			1.43			1.52

Stock-Based Compensation

The following table presents, by operating expense, the Company's stock-based compensation expense recognized in the Company's consolidated statement of operations for the years ended December 31 (in thousands):

	2019				2018				2017
Cost of revenues	$	25,355			$	18,247			$	13,621
Sales and marketing	56,719				53,448				50,094
General and administrative	154,465				109,021				111,785
Total	$	236,539			$	180,716			$	175,500

The Company's stock-based compensation recognized in the consolidated statement of operations was comprised of the following types of equity awards for the years ended December 31 (in thousands):

	2019				2018				2017
Restricted stock units	$	217,541			$	165,141			$	164,321
Employee stock purchase plan	18,998				15,575				11,179
Total	$	236,539			$	180,716			$	175,500

During the years ended December 31, 2019, 2018 and 2017, the Company capitalized $9.1 million, $9.1 million and $6.2 million, respectively, of stock-based compensation expense as construction in progress in property, plant and equipment.

As of December 31, 2019, the total stock-based compensation cost related to unvested equity awards not yet recognized, net of estimated forfeitures, totaled $413.8 million which is expected to be recognized over a weighted-average period of 2.25 years.

14.	Income Taxes

Income (loss) before income taxes is attributable to the following geographic locations for the years ended December 31, (in thousands):

	2019				2018				2017
Domestic	$	328,806			$	298,009			$	148,500
Foreign	363,791				135,029				138,332
Income before income taxes	$	692,597			$	433,038			$	286,832

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The tax benefit (expenses) for income taxes consisted of the following components for the years ended December 31, (in thousands):

	2019				2018				2017
Current:
Federal	$	(17,906	)		$	7,085			$	9,346
State and local	(4,624		)		(2,663		)		(849		)
Foreign	(135,356		)		(118,175		)		(109,032		)
Subtotal	(157,886		)		(113,753		)		(100,535		)
Deferred:
Federal	(7,459		)		(27,874		)		9,684
State and local	(1,775		)		(1,165		)		2,018
Foreign	(18,232		)		75,113				34,983
Subtotal	(27,466		)		46,074				46,685
Income tax expense	$	(185,352	)		$	(67,679	)		$	(53,850	)

State and foreign taxes not based on income are included in general and administrative expenses and the aggregate amounts were not significant for the years ended December 31, 2019, 2018 and 2017.

The fiscal 2019, 2018, and 2017 income tax benefit (expenses) differed from the amounts computed by applying the U.S. federal income tax rate of 21%, 21% and 35%, respectively, to pre-tax income as a result of the following for the years ended December 31 (in thousands):

	2019				2018				2017
Federal tax at statutory rate	$	(145,445	)		$	(90,938	)		$	(100,391	)
State and local tax (expense) benefit	(5,852		)		(3,616		)		1,000
Deferred tax assets generated in current year not benefited	(5,398		)		(3,777		)		(7,643		)
Foreign income tax rate differential	(11,610		)		(4,072		)		26,151
Non-deductible expenses	(1,021		)		(756		)		(2,629		)
Stock-based compensation expense	(2,105		)		(2,308		)		(616		)
Change in valuation allowance	(2,870		)		38,684				(716		)
Foreign financing activities	(18,738		)		(17,548		)		1,319
Loss on debt extinguishment	—				—				(1,604		)
Loss on divestments	(3,277		)		—				—
Uncertain tax positions reserve	(35,724		)		(20,440		)		(66		)
Tax adjustments related to REIT	63,614				32,189				41,973
Enactment of the US tax reform	—				—				(6,513		)
Change in deferred tax adjustments	(10,574		)		—				—
Other, net	(6,352		)		4,903				(4,115		)
Total income tax expense	$	(185,352	)		$	(67,679	)		$	(53,850	)

Legislation commonly referred to as the Tax Cuts and Jobs Act ("TCJA"), which was signed into law on December 22, 2017, contained many significant changes to the U.S. federal income tax laws. Among other things, the TCJA reduced the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018, limited the tax deductibility of interest expense, accelerated expensing of certain business assets and transitioned the U.S. international taxation from a worldwide tax system to a territorial tax system by imposing a one-time mandatory repatriation of undistributed foreign earnings. As a result of the reduced corporate tax rate, the Company recognized an income tax expense of $6.5 million during the fourth quarter of 2017 as a provisional estimate due to the remeasurement of the net deferred tax assets in the U.S. TRS. In the fourth quarter of 2018, the Company completed the analysis of the TCJA's income tax effects and the adjustment to the provisional amount was insignificant.

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The TCJA included a Global Intangible Low-Taxed Income ("GILTI") provision that increases U.S. federal taxable income by certain foreign subsidiary income in the year it is earned. The Company's accounting policy is to treat any tax on GILTI inclusions as a current period cost included in the tax expense in the year incurred. The Company believes the GILTI inclusion provision will result in no financial statement impact provided the Company satisfies its REIT distribution requirement with respect to the GILTI inclusions.

As a result of the Company's conversion to a REIT effective January 1, 2015, it is no longer the Company's intent to indefinitely reinvest undistributed foreign earnings. However, no deferred tax liability has been recognized to account for this change because the expected recovery of the basis difference will not result in U.S. taxes in the post-REIT conversion periods due to the fact that none of its foreign subsidiaries is owned by a U.S. taxable REIT subsidiary and the withholding tax effect would be immaterial. The Company continues to assess the foreign withholding tax impact of its current policy and does not believe the distribution of its foreign earnings would trigger any significant foreign withholding taxes, as a majority of the foreign jurisdictions where the Company operates do not impose withholding taxes on dividend distributions to a corporate U.S. parent.

The types of temporary differences that give rise to significant portions of the Company's deferred tax assets and liabilities are set out below as of December 31 (in thousands):

	2019				2018
Deferred tax assets:
Reserves and accruals	$	7,670			$	24,136
Stock-based compensation expense	2,675				2,524
Unrealized losses	6,492				1,471
Operating loss carryforwards	59,735				49,169
Gross deferred tax assets	76,572				77,300
Valuation allowance	(57,812		)		(57,003		)
Total deferred tax assets, net	18,760				20,297
Deferred tax liabilities:
Property, plant and equipment	(85,729		)		(50,610		)
Intangible assets	(144,404		)		(159,237		)
Total deferred tax liabilities	(230,133		)		(209,847		)
Net deferred tax liabilities	$	(211,373	)		$	(189,550	)

The tax basis of REIT assets, excluding investments in TRSs, is greater than the amounts reported for such assets in the accompanying consolidated balance sheet by approximately $1.9 billion as of December 31, 2019.

The Company's accounting for deferred taxes involves weighing positive and negative evidence concerning the realizability of the Company's deferred tax assets in each tax jurisdiction. After considering such evidence as the nature, frequency and severity of current and cumulative financial reporting losses, and the sources of future taxable income and tax planning strategies, the Company concluded that valuation allowances were required in certain foreign jurisdictions. The operations in the jurisdictions for which a valuation allowance has been established have a history of significant losses as of December 31, 2019. As such, the Company does not believe these operations have established a sustained history of profitability and that a valuation allowance is, therefore, necessary. The Company also provided a valuation allowance against certain gross deferred tax assets in certain tax jurisdictions as these deferred tax assets are not expected to be realizable in the foreseeable future.

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Changes in the valuation allowance for deferred tax assets for the years ended December 31, 2019, 2018 and 2017 are as follows (in thousands):

	2019				2018				2017
Beginning balance	$	57,003			$	84,573			$	29,167
Amounts from acquisitions	(2,707		)		33,070				25,283
Divested balances	(351		)		—				—
Amounts recognized into income	2,870				(38,684		)		716
Current increase (decrease)	697				(13,086		)		28,431
Impact of foreign currency exchange	300				(8,870		)		976
Ending balance	$	57,812			$	57,003			$	84,573

The Company's NOL carryforwards for federal, state and foreign tax purposes which expire, if not utilized, at various intervals from 2020, are outlined below (in thousands):

Expiration Date		Federal (1)				State				Foreign (2) (3)				Total
2020		$	78,458			$	—			$	9,739			$	88,197
2021 to 2023		149,057				—				6,191				155,248
2024 to 2026		15,564				—				19,867				35,431
2027 to 2029		6,065				—				14,383				20,448
2030 to 2032		—				—				—				—
2033 to 2035		—				197				—				197
Thereafter		—				—				322,729				322,729
		$	249,144			$	197			$	372,909			$	622,250

(1)	The total amount of NOL carryforwards that will not be available to offset the Company's future taxable income after dividend paid deduction due to Section 382 limitations was $241.8 million for federal.

(2)	In certain jurisdictions, the net operating loss carryforwards can only be used to offset a percentage of taxable income in a given year.

(3)	If certain substantial changes in the entity's ownership occur or have determined to have occurred, there may be a limitation on the amount of the carryforwards that can be utilized.

As of December 31, 2019, the Company had tax credit carryforwards of $8.6 million, which expire, if not utilized, from 2020 to 2031.

The beginning and ending balances of the Company's unrecognized tax benefits are reconciled below for the years ended December 31 (in thousands):

	2019				2018				2017
Beginning balance	$	150,930			$	82,390			$	72,187
Gross increases related to prior year tax positions	—				33,436				6,095
Gross decreases related to prior year tax positions	(1,160		)		—				—
Gross increases related to current year tax positions	31,332				48,685				19,832
Decreases resulting from expiration of statute of limitation	(2,112		)		(1,276		)		(15,410		)
Decreases resulting from settlements	(5,264		)		(12,305		)		(314		)
Ending balance	$	173,726			$	150,930			$	82,390

The Company recognizes interest and penalties related to unrecognized tax benefits within income tax expense in the consolidated statements of operations. The Company accrued $14.2 million and $8.4 million for interest and penalties as of December 31, 2019 and 2018, respectively.

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The unrecognized tax benefits of $173.7 million as of December 31, 2019, if subsequently recognized, will affect the Company's effective tax rate favorably at the time when such a benefit is recognized, of which $30.8 million is subject to an indemnification agreement.

Due to various tax years open for examination and the ongoing tax audits and inquiries by the tax authorities in different jurisdictions, it is reasonably possible that the balance of unrecognized tax benefits could significantly increase or decrease over the next 12 months as the Company may be subject to either examination by tax authorities, tax audit settlements, or a lapse in statute of limitations. The Company is currently unable to estimate the range of possible adjustments to the balance of unrecognized tax benefits.

The Company's income tax returns for the years from 2016 through current year remain open to examination by federal and state taxing authorities. In addition, the Company's tax years of 2007 through current year remain open and subject to examination by local tax authorities in certain foreign jurisdictions in which the Company has major operations.

15.	Commitments and Contingencies

Purchase Commitments

Primarily as a result of the Company's various IBX expansion projects, as of December 31, 2019, the Company was contractually committed for $0.8 billion of unaccrued capital expenditures, primarily for IBX equipment not yet delivered and labor not yet provided, in connection with the work necessary to open these IBX data centers and make them available to customers for installation. In addition, the Company had numerous other, non-capital purchase commitments in place as of December 31, 2019, such as commitments to purchase power in select locations through 2020 and thereafter, and other open purchase orders for goods, services or arrangements to be delivered or provided during 2020 and thereafter. Such other miscellaneous purchase commitments totaled $1.0 billion as of December 31, 2019. In addition, the Company entered into lease agreements with various landlords primarily for data center spaces and ground lease which have not yet commenced as of December 31, 2019. These leases will commence between fiscal years 2020 and 2022, with lease terms of 10 to 49 years and a total lease commitment of approximately $608.1 million.

Equity Contribution Commitments

In connection with the Joint Venture closed in October 2019, the Company agreed to make future equity contributions to the Joint Venture of €17.6 million and £15.7 million, or $40.6 million in total at the exchange rate in effect on December 31, 2019.

Contingent Liabilities

The Company estimates exposure on certain liabilities, such as indirect and property taxes, based on the best information available at the time of determination. With respect to real and personal property taxes, the Company records what it can reasonably estimate based on prior payment history, current landlord estimates or estimates based on current or changing fixed asset values in each specific municipality, as applicable. However, there are circumstances beyond the Company's control whereby the underlying value of the property or basis for which the tax is calculated on the property may change, such as a landlord selling the underlying property of one of the Company's IBX data center leases or a municipality changing the assessment value in a jurisdiction and, as a result, the Company's property tax obligations may vary from period to period. Based upon the most current facts and circumstances, the Company makes the necessary property tax accruals for each of its reporting periods. However, revisions in the Company's estimates of the potential or actual liability could materially impact the financial position, results of operations or cash flows of the Company.

The Company's indirect and property tax filings in various jurisdictions are subject to examination by local tax authorities. Although we believe that we have adequately assessed and accounted for our potential tax liabilities, and that our tax estimates are reasonable, there can be no certainty that additional taxes will not be due upon audit of our tax returns or as a result of further changes to the tax laws and interpretations thereof. For example, we are currently undergoing audits and appealing the tentative assessments in a number of jurisdictions where we operate, such as France and Brazil. The final results of these audits and outcome of the appeals are uncertain and may not be resolved

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in our favor. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations and appeals that would affect the adequacy of its tax accruals for each of the reporting periods. If any issues arising from the tax examinations and appeals are resolved in a manner inconsistent with the Company's expectations, the revision of the estimates of the potential or actual liabilities could materially impact the financial position, results of operations, or cash flows of the Company.

From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of its business activities. The Company accrues contingent liabilities when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. In the opinion of management, there are no pending claims for which the outcome is expected to result in a material adverse effect in the financial position, results of operations or cash flows of the Company.

Employment Agreements

The Company has entered into a severance agreement with certain of its executive officers that provides for a severance payment equal to 100% of the executive officer's annual base salary and maximum bonus in the event his or her employment is terminated for any reason other than cause or he or she voluntarily resigns under certain circumstances as described in the agreement, or 200% of the executive officer's annual base salary and maximum bonus in the event this occurs after a change-in-control of the Company. For certain other executive officers, these benefits are only triggered after a change-in-control of the Company, in which case the officer is entitled to 200% of the executive officer's annual base salary and maximum bonus. In addition, under these agreements, the executive officer is entitled to the payment of his or her monthly health care premiums under the Consolidated Omnibus Budget Reconciliation Act for up to 24 months.

Indemnification and Guarantor Arrangements

As permitted under Delaware law, the Company has agreements whereby the Company indemnifies its officers and directors for certain events or occurrences while the officer or director is, or was serving, at the Company's request in such capacity. The term of the indemnification period is for the officer's or director's lifetime. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has a director and officer insurance policy that limits the Company's exposure and enables the Company to recover a portion of any future amounts paid. As a result of the Company's insurance policy coverage, the Company believes the estimated fair value of these indemnification agreements is minimal. The Company has no liabilities recorded for these agreements as of December 31, 2019.

The Company enters into standard indemnification agreements in the ordinary course of business. Pursuant to these agreements, the Company indemnifies, holds harmless, and agrees to reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally the Company's business partners or customers, in connection with any U.S. patent, or any copyright or other intellectual property infringement claim by any third party with respect to the Company's offerings. The term of these indemnification agreements is generally perpetual any time after execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has never incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes the estimated fair value of these agreements is minimal. The Company has no liabilities recorded for these agreements as of December 31, 2019.

The Company enters into arrangements with its business partners, whereby the business partner agrees to provide services as a subcontractor for the Company's installations. Accordingly, the Company enters into standard indemnification agreements with its customers, whereby the Company indemnifies them for other acts, such as personal property damage, of its subcontractors. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has general and umbrella insurance policies that enable the Company to recover a portion of any amounts paid. The Company has never incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes the estimated fair value of these agreements is minimal. The Company has no liabilities recorded for these agreements as of December 31, 2019.

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The Company has service level commitment obligations to certain of its customers. As a result, service interruptions or significant equipment damage in the Company's IBX data centers, whether or not within the Company's control, could result in service level commitments to these customers. The Company's liability insurance may not be adequate to cover those expenses. In addition, any loss of services, equipment damage or inability to meet the Company's service level commitment obligations could reduce the confidence of the Company's customers and could consequently impair the Company's ability to obtain and retain customers, which would adversely affect both the Company's ability to generate revenues and the Company's operating results. The Company generally has the ability to determine such service level credits prior to the associated revenue being recognized. The Company does not have significant liabilities in connection with service level credits as of December 31, 2019.

16.	Related Party Transactions

Related Party Transactions with the Joint Venture

Upon closing of the Joint Venture, the Company sold certain data center facilities in Europe to the Joint Venture and recognized a gain on assets sale of $45.1 million during the year ended December 31, 2019. For further information on the transaction, see Note 5 above.

The Company entered into a sub-lease agreement with the Joint Venture to sub-lease a portion of Equinix's former LD10 Data Center. The Company accounted for the lease as a finance lease. As of December 31, 2019, the Company recorded a finance lease ROU asset and liability of £103.2 million, or approximately $136.7 million at the exchange rate in effect on December 31, 2019. For further information on the lease, see Note 10 above.

The Company also entered an agreement to lease to the Joint Venture a portion of land at its Frankfurt 2 data center site and a new building that is under construction at the land. The lease will have an initial term of 30 years and 2 renewal options of 10 years each. The consideration of the lease agreement will be based on the total cost of construction as determined when the construction is completed. As of December 31, 2019, the lease has not commenced yet.

In connection with the Joint Venture investment, the Company entered into multiple agreements to provide various services to the Joint Venture, including sales and marketing, development management, facilities management, and asset management services. During the year ended December 31, 2019, the total revenue recorded from these services was insignificant.

Other Related Party Transactions

The Company has several significant stockholders and other related parties that are also customers and/or vendors. The Company's activity of related party transactions was as follows (in thousands):

	Years ended December 31,
	2019				2018				2017
Revenues	$	25,905			$	19,439			$	13,726
Costs and services	15,844				19,708				11,211

	As of December 31,
	2019				2018
Accounts receivable	$	3,345			$	4,031
Accounts payable	800				585

17.	Segment Information

While the Company has a single line of business, which is the design, build-out and operation of IBX data centers, it has determined that it has three reportable segments comprised of its Americas, EMEA and Asia-Pacific geographic regions.

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The following tables present revenue information disaggregated by service lines and geographic areas (in thousands):

	Twelve Months Ended December 31, 2019
	Americas (2)				EMEA				Asia-Pacific				Total
Colocation (1)	$	1,769,654			$	1,395,544			$	857,009			$	4,022,207
Interconnection	576,709				161,552				155,328				893,589
Managed infrastructure	90,262				113,631				88,735				292,628
Other (1)	19,743				10,019				—				29,762
Recurring revenues	2,456,368				1,680,746				1,101,072				5,238,186
Non-recurring revenues	131,359				125,698				66,897				323,954
Total	$	2,587,727			$	1,806,444			$	1,167,969			$	5,562,140

(1)	Includes some leasing and hedging activities. For further information on revenue recognition, see Note 1 and Note 2 above.

(2)	Includes revenues of $2.4 billion attributed to the U.S.

	Twelve Months Ended December 31, 2018
	Americas (2)				EMEA				Asia-Pacific				Total
Colocation (1)	$	1,732,998			$	1,201,769			$	735,404			$	3,670,171
Interconnection	532,163				138,874				130,928				801,965
Managed infrastructure	75,595				118,685				85,352				279,632
Other (1)	16,570				8,164				—				24,734
Recurring revenues	2,357,326				1,467,492				951,684				4,776,502
Non-recurring revenues	127,408				95,145				72,599				295,152
Total	$	2,484,734			$	1,562,637			$	1,024,283			$	5,071,654

(1)	Includes some leasing and hedging activities. For further information on revenue recognition, see Note 1 and Note 2 above.

(2)	Includes revenues of $2.3 billion attributed to the U.S.

	Twelve Months Ended December 31, 2017
	Americas (2)				EMEA				Asia-Pacific				Total
Colocation (1)	$	1,518,929			$	1,063,543			$	595,673			$	3,178,145
Interconnection	469,268				104,891				107,014				681,173
Managed infrastructure	68,937				88,122				88,110				245,169
Other (1)	5,218				10,415				—				15,633
Recurring revenues	2,062,352				1,266,971				790,797				4,120,120
Non-recurring revenues	110,408				79,285				58,615				248,308
Total	$	2,172,760			$	1,346,256			$	849,412			$	4,368,428

(1)	Includes some leasing and hedging activities. For further information on revenue recognition, see Note 1 and Note 2 above.

(2)	Includes revenues of $2.0 billion attributed to the U.S.

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The Company's chief operating decision-maker evaluates performance, makes operating decisions and allocates resources based on the Company's revenues and adjusted EBITDA performance both on a consolidated basis and these three reportable segments. The Company defines adjusted EBITDA as income from operations excluding depreciation, amortization, accretion, stock-based compensation expense, restructuring charges, impairment charges, transaction costs and gain on asset sales as presented below for the years ended December 31 (in thousands):

	2019				2018				2017
Adjusted EBITDA:
Americas	$	1,237,622			$	1,183,831			$	1,034,694
EMEA	827,980				698,280				582,697
Asia-Pacific	622,125				531,129				434,650
Total adjusted EBITDA	2,687,727				2,413,240				2,052,041
Depreciation, amortization and accretion expense	(1,285,296		)		(1,226,741		)		(1,028,892		)
Stock-based compensation expense	(236,539		)		(180,716		)		(175,500		)
Transaction costs	(24,781		)		(34,413		)		(38,635		)
Impairment charges	(15,790		)		—				—
Gain on asset sales	44,310				6,013				—
Income from operations	$	1,169,631			$	977,383			$	809,014

The Company provides the following segment disclosures related to its operations as follows for the years ended December 31 (in thousands):

	2019				2018				2017
Depreciation and amortization:
Americas	$	669,498			$	636,214			$	515,726
EMEA	353,765				355,895				316,250
Asia-Pacific	261,574				235,380				210,504
Total	$	1,284,837			$	1,227,489			$	1,042,480
Capital expenditures:
Americas	$	805,360			$	773,514			$	621,158
EMEA	733,326				884,790				555,346
Asia-Pacific	540,835				437,870				202,221
Total	$	2,079,521			$	2,096,174			$	1,378,725

The Company's long-lived assets, including property, plant and equipment, net and operating lease right-of-use assets, are located in the following geographic areas as of December 31 (in thousands):

	2019				2018
Americas (1)	$	5,400,287			$	5,010,507
EMEA	4,051,701				3,726,596
Asia-Pacific	2,700,609				2,288,917
Total Property, plant and equipment, net	$	12,152,597			$	11,026,020

(1)	Includes $4.8 billion and $4.6 billion, respectively, of property, plant and equipment, net attributed to the U.S. as of December 31, 2019 and 2018.

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	2019				2018
Americas (1)	$	387,598			$	—
EMEA	521,129				—
Asia-Pacific	566,640				—
Total Operating lease right-of-use assets	$	1,475,367			$	—

(1)	Includes $373.7 million of operating lease right-of-use assets attributed to the U.S. as of December 31, 2019.

18.	Subsequent Events

On February 12, 2020, the Company's Board of Directors declared a quarterly cash dividend of $2.66 per share, which is payable on March 18, 2020 to the Company's common stockholders of record as of the close of business on February 26, 2020.

On January 14, 2020, the Company entered into an agreement to acquire Packet Host, Inc., the bare metal automation company. The acquisition is expected to close in the first quarter of 2020, subject to customary closing conditions.

On January 8, 2020, the Company completed the acquisition of three data centers in Mexico for a cash purchase price of approximately $175.0 million. The operating results of the acquisition are reported in the Americas region following the date of acquisition. The valuation of assets acquired and liabilities assumed are still being appraised by a third-party and the purchase price allocation is not yet complete.

19.	Quarterly Financial Information (Unaudited)

The Company believes that period-to-period comparisons of its financial results should not be relied upon as an indication of future performance. The Company's revenues and results of operations have been subject to significant fluctuations, particularly on a quarterly basis, and the Company's revenues and results of operations could fluctuate significantly quarter-to-quarter and year-to-year. Significant quarterly fluctuations in revenues will cause fluctuations in the Company's cash flows and the cash and cash equivalents and accounts receivable accounts on the Company's consolidated balance sheet. Causes of such fluctuations may include the volume and timing of new orders and renewals, the timing of the opening of new IBX data centers, the sales cycle for the Company's offerings, the introduction of new offerings, changes in prices and pricing models, trends in the internet infrastructure industry, general economic conditions, extraordinary events such as acquisitions or litigation and the occurrence of unexpected events.

The unaudited quarterly financial information presented below has been prepared by the Company and reflects all adjustments, consisting only of normal recurring adjustments, which in the opinion of management are necessary to present fairly the financial position and results of operations for the interim periods presented.

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The following tables present selected quarterly information (in thousands, except per share data):

	2019
	Quarters Ended
	March 31				June 30				September 30				December 31
Revenues	$	1,363,218			$	1,384,977			$	1,396,810			$	1,417,135
Gross profit	681,188				686,798				692,471				691,499
Net income attributable to Equinix	118,078				143,527				120,850				124,995
Earnings per share attributable to Equinix:
Basic	1.44				1.70				1.42				1.47
Diluted	1.44				1.69				1.41				1.46

	2018
	Quarters Ended
	March 31				June 30				September 30				December 31
Revenues	$	1,215,877			$	1,261,943			$	1,283,751			$	1,310,083
Gross profit	593,447				610,142				623,442				639,148
Net income attributable to Equinix	62,894				67,618				124,825				110,022
Earnings per share attributable to Equinix:
Basic	0.79				0.85				1.56				1.37
Diluted	0.79				0.85				1.55				1.36

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SCHEDULE III - SCHEDULE OF REAL ESTATE AND ACCUMULATED DEPRECIATION

DECEMBER 31, 2019

(Dollars in Thousands)

	Initial Costs to Company (1)						Costs Capitalized Subsequent to Acquisition or Lease				Total Costs
	Encumbrances		Land		Buildings and Improvements (2)		Land		Buildings and Improvements (2)		Land		Buildings and Improvements (2)		Accumulated Depreciation (3)		Date of Acquisition or Lease (4)
Americas:
AT1 ATLANTA (METRO)	$—		$—		$—		$—		$147,120		$—		$147,120		$(60,777)		2010
AT2 ATLANTA (METRO)	—		—		—		—		39,988		—		39,988		(23,173)		2010
AT3 ATLANTA (METRO)	—		—		—		—		4,571		—		4,571		(2,638)		2010
AT4 ATLANTA (METRO)	—		5,400		20,209		—		16,914		5,400		37,123		(8,279)		2017
AT5 ATLANTA (METRO)	—		—		5,011		—		1,962		—		6,973		(3,193)		2017
BG1 BOGOTÁ (METRO), COLOMBIA	—		—		8,779		899		4,859		899		13,638		(3,097)		2017
BO1 BOSTON (METRO)	—		—		—		—		10,770		—		10,770		(8,928)		2010
BO2 BOSTON (METRO)	—		2,500		30,383		—		19,941		2,500		50,324		(9,841)		2017
CH1 CHICAGO (METRO)	—		—		—		—		153,749		—		153,749		(95,232)		1999
CH2 CHICAGO (METRO)	—		—		—		—		110,736		—		110,736		(60,803)		2005
CH3 CHICAGO (METRO)	—		9,759		—		351		319,029		10,110		319,029		(121,456)		2006
CH4 CHICAGO (METRO)	—		—		—		—		22,444		—		22,444		(12,658)		2009
CH7 CHICAGO (METRO)	—		670		10,564		—		5,077		670		15,641		(3,679)		2017
CU1 CULPEPER (METRO)	—		1,019		37,581		—		4,523		1,019		42,104		(10,596)		2017
CU2 CULPEPER (METRO)	—		1,244		48,000		—		7,813		1,244		55,813		(11,365)		2017
CU3 CULPEPER (METRO)	—		1,088		37,387		—		1,010		1,088		38,397		(8,692)		2017
CU4 CULPEPER (METRO)	—		1,372		27,832		—		32,477		1,372		60,309		(6,588)		2017
DA1 DALLAS (METRO)	—		—		—		—		70,861		—		70,861		(38,772)		2000
DA2 DALLAS (METRO)	—		—		—		—		80,240		—		80,240		(28,647)		2010
DA3 DALLAS (METRO)	—		—		—		—		96,101		—		96,101		(37,901)		2010
DA4 DALLAS (METRO)	—		—		—		—		17,206		—		17,206		(8,878)		2010
DA6 DALLAS (METRO)	—		—		20,522		—		162,223		—		182,745		(30,483)		2012
DA7 DALLAS (METRO)	—		—		—		—		29,417		—		29,417		(10,489)		2015
DA9 DALLAS (METRO)	—		610		15,398		—		4,212		610		19,610		(4,730)		2017
DA10 DALLAS (METRO)	—		—		117		—		4,633		—		4,750		(3,105)		2017
DA11 DALLAS (METRO)	—		—		—		—		107,889		—		107,889		—		2018
INFOMART BUILDING DALLAS (METRO)	—		24,380		337,643		—		9,111		24,380		346,754		(19,765)		2018
DC1 WASHINGTON, DC (METRO)	—		—		—		—		4,762		—		4,762		(1,245)		1999
DC2 WASHINGTON, DC (METRO)	—		—		—		5,047		124,621		5,047		124,621		(95,146)		1999
DC3 WASHINGTON, DC (METRO)	—		—		37,451		—		50,453		—		87,904		(52,127)		2004
DC4 WASHINGTON, DC (METRO)	—		1,906		7,272		—		72,553		1,906		79,825		(53,710)		2005
DC5 WASHINGTON, DC (METRO)	—		1,429		4,983		—		89,414		1,429		94,397		(63,448)		2005

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	Initial Costs to Company (1)						Costs Capitalized Subsequent to Acquisition or Lease				Total Costs
	Encumbrances		Land		Buildings and Improvements (2)		Land		Buildings and Improvements (2)		Land		Buildings and Improvements (2)		Accumulated Depreciation (3)		Date of Acquisition or Lease (4)
DC6 WASHINGTON, DC (METRO)	—		1,429		5,082		—		92,078		1,429		97,160		(49,377)		2005
DC7 WASHINGTON, DC (METRO)	—		—		—		—		18,939		—		18,939		(12,156)		2010
DC8 WASHINGTON, DC (METRO)	—		—		—		—		4,598		—		4,598		(4,495)		2010
DC10 WASHINGTON, DC (METRO)	—		—		44,601		—		76,413		—		121,014		(72,826)		2011
DC11 WASHINGTON, DC (METRO)	—		1,429		5,082		—		181,683		1,429		186,765		(50,834)		2005
DC12 WASHINGTON, DC (METRO)	—		—		101,783		—		64,510		—		166,293		(17,654)		2017
DC13 WASHINGTON, DC (METRO)	—		5,500		25,423		—		9,680		5,500		35,103		(10,464)		2017
DC14 WASHINGTON, DC (METRO)	—		2,560		33,511		—		9,565		2,560		43,076		(8,427)		2017
DC15 WASHINGTON, DC (METRO)	—		—		—		—		91,836		—		91,836		—		2018
DC21 WASHINGTON, DC (METRO)	—		—		—		—		15,176		—		15,176		—		2019
DC97 WASHINGTON, DC (METRO)	—		—		2,021		—		971		—		2,992		(1,108)		2017
DE1 DENVER (METRO)	—		—		—		—		9,764		—		9,764		(8,662)		2010
DE2 DENVER (METRO)	—		5,240		23,053		—		29,163		5,240		52,216		(11,831)		2017
HO1 HOUSTON (METRO)	—		1,440		23,780		—		32,179		1,440		55,959		(11,094)		2017
LA1 LOS ANGELES (METRO)	—		—		—		—		107,714		—		107,714		(67,186)		1999
LA2 LOS ANGELES (METRO)	—		—		—		—		10,904		—		10,904		(8,869)		2000
LA3 LOS ANGELES (METRO)	—		—		34,727		3,959		21,283		3,959		56,010		(46,154)		2005
LA4 LOS ANGELES (METRO)	—		19,333		137,630		—		47,458		19,333		185,088		(85,994)		2009
LA7 LOS ANGELES (METRO)	—		7,800		33,621		—		7,584		7,800		41,205		(10,070)		2017
MI1 MIAMI (METRO)	—		18,920		127,194		—		94,472		18,920		221,666		(42,736)		2017
MI2 MIAMI (METRO)	—		—		—		—		23,223		—		23,223		(13,246)		2010
MI3 MIAMI (METRO)	—		—		—		—		32,602		—		32,602		(15,320)		2012
MI6 MIAMI (METRO)	—		4,750		23,017		—		8,286		4,750		31,303		(9,083)		2017
NY1 NEW YORK (METRO)	—		—		—		—		71,186		—		71,186		(41,346)		1999
NY2 NEW YORK (METRO)	—		—		—		17,859		204,510		17,859		204,510		(130,020)		2000
NY4 NEW YORK (METRO)	—		—		—		—		352,069		—		352,069		(188,961)		2006
NY5 NEW YORK (METRO)	—		—		—		—		269,478		—		269,478		(67,199)		2010
NY6 NEW YORK (METRO)	—		—		—		—		66,897		—		66,897		(12,312)		2010
NY7 NEW YORK (METRO)	—		—		24,660		—		167,514		—		192,174		(123,495)		2010
NY8 NEW YORK (METRO)	—		—		—		—		11,267		—		11,267		(7,928)		2010
NY9 NEW YORK (METRO)	—		—		—		—		50,868		—		50,868		(33,241)		2010
NY11 NEW YORK (METRO)	—		2,050		58,717		—		10,940		2,050		69,657		(17,997)		2017
NY13 NEW YORK (METRO)	—		—		31,603		—		6,463		—		38,066		(11,081)		2017
PH1 PHILADELPHIA (METRO)	—		—		—		—		43,724		—		43,724		(16,725)		2010
RJ1 RIO DE JANEIRO (METRO), BRAZIL	—		—		—		—		22,642		—		22,642		(15,816)		2011
RJ2 RIO DE JANEIRO (METRO), BRAZIL	—		—		2,012		1,635		56,081		1,635		58,093		(18,176)		2012
SE2 SEATTLE (METRO)	—		—		—		—		27,912		—		27,912		(23,071)		2010

---

	Initial Costs to Company (1)						Costs Capitalized Subsequent to Acquisition or Lease				Total Costs
	Encumbrances		Land		Buildings and Improvements (2)		Land		Buildings and Improvements (2)		Land		Buildings and Improvements (2)		Accumulated Depreciation (3)		Date of Acquisition or Lease (4)
SE3 SEATTLE (METRO)	—		—		1,760		—		99,026		—		100,786		(48,609)		2011
SE4 SEATTLE (METRO)	—		4,000		12,903		—		30,171		4,000		43,074		(4,990)		2017
SP1 SÃO PAULO (METRO), BRAZIL	—		—		10,188		—		20,427		—		30,615		(24,774)		2011
SP2 SÃO PAULO (METRO), BRAZIL	—		—		—		3,979		67,644		3,979		67,644		(52,426)		2011
SP3 SÃO PAULO (METRO), BRAZIL	—		9,998		72,997		—		33,856		9,998		106,853		(21,392)		2017
SP4 SÃO PAULO (METRO), BRAZIL	—		—		22,027		—		46,673		—		68,700		(8,156)		2017
SV1 SILICON VALLEY (METRO)	—		—		—		15,545		142,396		15,545		142,396		(92,746)		1999
SV2 SILICON VALLEY (METRO)	—		—		—		—		150,225		—		150,225		(85,449)		2003
SV3 SILICON VALLEY (METRO)	—		—		—		—		80,591		—		80,591		(38,156)		1999
SV4 SILICON VALLEY (METRO)	—		—		—		—		25,031		—		25,031		(21,991)		2005
SV5 SILICON VALLEY (METRO)	—		6,238		98,991		—		98,181		6,238		197,172		(73,271)		2010
SV6 SILICON VALLEY (METRO)	—		—		15,585		—		28,778		—		44,363		(33,612)		2010
SV8 SILICON VALLEY (METRO)	—		—		—		—		51,084		—		51,084		(32,480)		2010
SV10 SILICON VALLEY (METRO)	—		12,646		123,594		—		85,811		12,646		209,405		(19,993)		2017
SV11 SILICON VALLEY (METRO)	—		—		—		—		2,809		—		2,809		—		2019
SV12 SILICON VALLEY (METRO)	—		20,313		—		—		6,925		20,313		6,925		—		2015
SV13 SILICON VALLEY (METRO)	—		—		3,828		—		73		—		3,901		(2,459)		2017
SV14 SILICON VALLEY (METRO)	—		3,638		5,503		—		3,742		3,638		9,245		(1,768)		2017
SV15 SILICON VALLEY (METRO)	—		7,651		23,060		—		1,188		7,651		24,248		(5,827)		2017
SV16 SILICON VALLEY (METRO)	—		4,271		15,018		—		1,384		4,271		16,402		(4,237)		2017
SV17 SILICON VALLEY (METRO)	—		—		17,493		—		3,805		—		21,298		(10,830)		2017
TR1 TORONTO (METRO), CANADA	—		—		—		—		90,620		—		90,620		(30,501)		2010
TR2 TORONTO (METRO), CANADA	—		—		21,113		104,289		120,080		104,289		141,193		(19,385)		2015
OTHERS (5)	—		77,527		21,580		227		36,770		77,754		58,350		(2,876)		Various
EMEA:
AD1 ABU DHABI (METRO), UNITED ARAB EMIRATES	—		—		—		—		353		—		353		(108)		2017
AM1 AMSTERDAM (METRO), THE NETHERLANDS	—		—		—		—		86,937		—		86,937		(42,564)		2008
AM2 AMSTERDAM (METRO), THE NETHERLANDS	—		—		—		—		80,238		—		80,238		(30,339)		2008
AM3 AMSTERDAM (METRO), THE NETHERLANDS	—		—		27,099		—		125,459		—		152,558		(52,150)		2011
AM4 AMSTERDAM (METRO), THE NETHERLANDS	—		—		—		—		190,025		—		190,025		(14,637)		2016
AM5 AMSTERDAM (METRO), THE NETHERLANDS	—		—		92,199		—		12,882		—		105,081		(25,529)		2016
AM6 AMSTERDAM (METRO), THE NETHERLANDS	—		6,616		50,876		437		81,635		7,053		132,511		(18,039)		2016

---

	Initial Costs to Company (1)						Costs Capitalized Subsequent to Acquisition or Lease				Total Costs
	Encumbrances		Land		Buildings and Improvements (2)		Land		Buildings and Improvements (2)		Land		Buildings and Improvements (2)		Accumulated Depreciation (3)		Date of Acquisition or Lease (4)
AM7 AMSTERDAM (METRO), THE NETHERLANDS	—		—		7,397		—		62,235		—		69,632		(5,773)		2016
AM8 AMSTERDAM (METRO), THE NETHERLANDS	—		—		—		—		11,060		—		11,060		(4,178)		2016
AM11 AMSTERDAM (METRO), THE NETHERLANDS	—		—		6,405		410		1,314		410		7,719		(410)		2019
BA1 BARCELONA (METRO), SPAIN	—		—		9,443		—		6,785		—		16,228		(3,710)		2017
DB1 DUBLIN (METRO), IRELAND	—		—		—		—		3,597		—		3,597		(2,446)		2016
DB2 DUBLIN (METRO), IRELAND	—		—		12,460		—		3,734		—		16,194		(6,469)		2016
DB3 DUBLIN (METRO), IRELAND	—		3,334		54,387		220		14,652		3,554		69,039		(15,205)		2016
DB4 DUBLIN (METRO), IRELAND	—		—		26,875		—		14,977		—		41,852		(6,898)		2016
DU1 DÜSSELDORF (METRO), GERMANY	—		—		—		8,117		30,189		8,117		30,189		(18,332)		2000
DX1 DUBAI (METRO), UNITED ARAB EMIRATES	—		—		—		—		89,340		—		89,340		(25,114)		2008
DX2 DUBAI (METRO), UNITED ARAB EMIRATES	—		—		—		—		653		—		653		(175)		2017
EN1 ENSCHEDE (METRO), THE NETHERLANDS	—		—		—		—		31,702		—		31,702		(21,705)		2008
FR1 FRANKFURT (METRO), GERMANY	—		—		—		—		4,151		—		4,151		(3,800)		2007
FR2 FRANKFURT (METRO), GERMANY	—		—		—		24,342		497,924		24,342		497,924		(126,263)		2007
FR4 FRANKFURT (METRO), GERMANY	—		11,578		9,307		764		80,031		12,342		89,338		(28,865)		2009
FR5 FRANKFURT (METRO), GERMANY	30,310		—		—		14,002		189,912		14,002		189,912		(41,597)		2012
FR6 FRANKFURT (METRO), GERMANY	—		—		—		—		135,071		—		135,071		(16,536)		2016
FR7 FRANKFURT (METRO), GERMANY	—		—		43,634		—		27,003		—		70,637		(18,717)		2016
GV1 GENEVA (METRO), SWITZERLAND	—		—		—		—		15,117		—		15,117		(3,841)		2004
GV2 GENEVA (METRO), SWITZERLAND	—		—		—		—		24,648		—		24,648		(21,916)		2009
HE1 HELSINKI (METRO), FINLAND	—		—		—		—		3,626		—		3,626		(2,541)		2016
HE3 HELSINKI (METRO), FINLAND	—		—		—		—		13,920		—		13,920		(8,134)		2016
HE4 HELSINKI (METRO), FINLAND	—		—		29,092		—		5,841		—		34,933		(13,389)		2016
HE5 HELSINKI (METRO), FINLAND	—		—		7,564		—		5,856		—		13,420		(3,627)		2016
HE6 HELSINKI (METRO), FINLAND	—		—		17,204		1,571		25,830		1,571		43,034		(8,828)		2016
HE7 HELSINKI (METRO), FINLAND	—		7,348		6,946		1,019		16,128		8,367		23,074		(1,310)		2018
HH1 HAMBURG (METRO), GERMANY			3,612		5,360		549		26,734		4,161		32,094		(290)		2018
IL2 ISTANBUL (METRO), TURKEY	—		14,460		39,289		—		12,428		14,460		51,717		(4,603)		2017
LD3 LONDON (METRO), UNITED KINGDOM	—		—		—		—		17,513		—		17,513		(15,831)		2000
LD4 LONDON (METRO), UNITED KINGDOM	—		—		23,044		—		119,830		—		142,874		(43,675)		2007
LD5 LONDON (METRO), UNITED KINGDOM	—		—		16,412		—		181,903		—		198,315		(88,458)		2010
LD6 LONDON (METRO), UNITED KINGDOM	—		—		—		—		138,942		—		138,942		(27,330)		2013
LD7 LONDON (METRO), UNITED KINGDOM	—		—		—		—		130,759		—		130,759		(3,320)		2018

---

	Initial Costs to Company (1)						Costs Capitalized Subsequent to Acquisition or Lease				Total Costs
	Encumbrances		Land		Buildings and Improvements (2)		Land		Buildings and Improvements (2)		Land		Buildings and Improvements (2)		Accumulated Depreciation (3)		Date of Acquisition or Lease (4)
LD8 LONDON (METRO), UNITED KINGDOM	—		—		107,544		—		37,898		—		145,442		(38,935)		2016
LD9 LONDON (METRO), UNITED KINGDOM	—		—		181,431		—		152,279		—		333,710		(58,823)		2016
LD10 LONDON (METRO), UNITED KINGDOM	—		—		40,251		—		98,955		—		139,206		(3,115)		2017
LS1 LISBON (METRO), PORTUGAL	—		—		7,374		3,467		4,061		3,467		11,435		(2,313)		2017
MA1 MANCHESTER (METRO), UNITED KINGDOM	—		—		—		—		10,480		—		10,480		(4,260)		2016
MA2 MANCHESTER (METRO), UNITED KINGDOM	—		—		—		—		10,211		—		10,211		(5,824)		2016
MA3 MANCHESTER (METRO), UNITED KINGDOM	—		—		44,931		—		5,883		—		50,814		(20,007)		2016
MA4 MANCHESTER (METRO), UNITED KINGDOM	—		—		6,697		—		2,403		—		9,100		(6,634)		2016
MD1 MADRID (METRO), SPAIN	—		—		7,917		10,961		1,086		10,961		9,003		(3,074)		2017
MD2 MADRID (METRO), SPAIN	—		—		40,952		—		29,913		—		70,865		(18,467)		2017
ML2 MILAN (METRO), ITALY	—		—		—		—		18,941		—		18,941		(8,119)		2016
ML3 MILAN (METRO), ITALY	—		—		—		3,564		41,678		3,564		41,678		(11,036)		2016
ML4 MILAN (METRO), ITALY	—		—		—		—		8,978		—		8,978		(4,812)		2016
ML5 MILAN (METRO), ITALY	—		7,741		20,952		—		—		7,741		20,952		—		2019
MU1 MUNICH (METRO), GERMANY	—		—		—		—		26,282		—		26,282		(15,088)		2007
MU3 MUNICH (METRO), GERMANY	—		—		—		—		4,759		—		4,759		(2,001)		2010
PA1 PARIS (METRO), FRANCE	—		—		—		—		21,810		—		21,810		(11,154)		2007
PA2 & PA3 PARIS (METRO), FRANCE	—		—		29,615		25,290		286,113		25,290		315,728		(121,808)		2007
PA4 PARIS (METRO), FRANCE	—		1,598		9,503		—		225,703		1,598		235,206		(61,380)		2011
PA5 PARIS (METRO), FRANCE	—		—		16,554		—		442		—		16,996		(5,081)		2016
PA6 PARIS (METRO), FRANCE	—		—		—		—		66,720		—		66,720		(25,375)		2016
PA7 PARIS (METRO), FRANCE	—		—		—		—		18,611		—		18,611		(7,477)		2016
PA9x PARIS (METRO), FRANCE	—		—		—		—		54,834		—		54,834		—		2019
SA1 SEVILLE (METRO), SPAIN	—		—		1,567		—		809		—		2,376		(1,459)		2017
SK1 STOCKHOLM, (METRO), SWEDEN	—		—		15,495		—		7,865		—		23,360		(7,424)		2016
SK2 STOCKHOLM, (METRO), SWEDEN	—		—		80,148		3,775		59,319		3,775		139,467		(20,755)		2016
SK3 STOCKHOLM, (METRO), SWEDEN	—		—		—		—		15,769		—		15,769		(3,738)		2016
SO1 SOFIA (METRO), BULGARIA	—		—		5,236		—		2,471		—		7,707		(1,780)		2016
SO2 SOFIA (METRO), BULGARIA	—		2,719		—		—		17,074		2,719		17,074		(454)		2017
WA1 WARSAW (METRO), POLAND	—		—		5,950		—		10,951		—		16,901		(5,390)		2016
WA2 WARSAW (METRO), POLAND	—		—		4,709		—		8,536		—		13,245		(3,528)		2016
WA3 WARSAW (METRO), POLAND	—		2,784		—		—		33,930		2,784		33,930		(67)		2017
ZH1 ZURICH (METRO), SWITZERLAND	—		—		—		—		36		—		36		—		2007
ZH2 ZURICH (METRO), SWITZERLAND	—		—		—		—		3,158		—		3,158		(2,579)		2002
ZH4 ZURICH (METRO), SWITZERLAND	—		—		11,284		—		23,137		—		34,421		(23,774)		2009

---

	Initial Costs to Company (1)						Costs Capitalized Subsequent to Acquisition or Lease				Total Costs
	Encumbrances		Land		Buildings and Improvements (2)		Land		Buildings and Improvements (2)		Land		Buildings and Improvements (2)		Accumulated Depreciation (3)		Date of Acquisition or Lease (4)
ZH5 ZURICH (METRO), SWITZERLAND	—		—		—		7,613		122,801		7,613		122,801		(20,735)		2009
ZW1 ZWOLLE (METRO), THE NETHERLANDS	—		—		—		—		9,934		—		9,934		(6,829)		2008
OTHERS (5)	—		16,652		7,956		16,763		54,557		33,415		62,513		(3,756)		Various
Asia-Pacific:
AE1 ADELAIDE (METRO), AUSTRALIA	—		2,654		1,015		—		1,689		2,654		2,704		(400)		2018
BR1 BRISBANE (METRO), AUSTRALIA	—		3,159		1,053		—		1,712		3,159		2,765		(249)		2018
CA1 CANBERRA (METRO), AUSTRALIA	—		—		18,410		—		1,416		—		19,826		(1,397)		2018
HK1 HONG KONG (METRO), CHINA	—		—		—		—		217,236		—		217,236		(102,231)		2003
HK2 HONG KONG (METRO), CHINA	—		—		—		—		230,373		—		230,373		(117,462)		2010
HK3 HONG KONG (METRO), CHINA	—		—		—		—		137,773		—		137,773		(70,771)		2012
HK4 HONG KONG (METRO), CHINA	—		—		—		—		67,853		—		67,853		(7,278)		2012
HK5 HONG KONG (METRO), CHINA	—		—		70,002		—		36,845		—		106,847		(13,545)		2017
ME1 MELBOURNE (METRO), AUSTRALIA	—		14,926		—		—		83,929		14,926		83,929		(18,291)		2013
ME2 MELBOURNE (METRO), AUSTRALIA	—		—		—		—		74,262		—		74,262		(130)		2018
ME4 MELBOURNE (METRO), AUSTRALIA	—		3,426		84,175		—		7,387		3,426		91,562		(10,436)		2018
ME5 MELBOURNE (METRO), AUSTRALIA	—		6,655		4,094		—		3,523		6,655		7,617		(1,167)		2018
OS1 OSAKA (METRO), JAPAN	—		—		14,876		—		97,754		—		112,630		(26,774)		2013
OS2x OSAKA (METRO), JAPAN	—		12,023		—		651		4,255		12,674		4,255		—		2018
PE1 PERTH (METRO), AUSTRALIA	—		1,348		1,337		—		1,064		1,348		2,401		(184)		2018
PE2 PERTH (METRO), AUSTRALIA	—		—		16,327		—		12,344		—		28,671		(3,003)		2018
SG1 SINGAPORE (METRO)	—		—		—		—		173,068		—		173,068		(116,934)		2003
SG2 SINGAPORE (METRO)	—		—		—		—		293,336		—		293,336		(188,277)		2008
SG3 SINGAPORE (METRO)	—		—		34,844		—		210,664		—		245,508		(50,346)		2013
SG4 SINGAPORE (METRO)	—		—		54,602		—		72,084		—		126,686		(287)		2019
SG5 SINGAPORE (METRO)	—		—		—		—		24,320		—		24,320		—		2019
SH2 SHANGHAI (METRO), CHINA	—		—		—		—		5,037		—		5,037		(1,919)		2012
SH3 SHANGHAI (METRO), CHINA	—		—		7,066		—		9,950		—		17,016		(5,570)		2012
SH5 SHANGHAI (METRO), CHINA	—		—		11,284		—		20,369		—		31,653		(11,965)		2012
SH6 SHANGHAI (METRO), CHINA	—		—		16,545		—		12,469		—		29,014		(1,448)		2017
SL1 SEOUL (METRO), SOUTH KOREA	—		—		29,236		—		4,729		—		33,965		(1,306)		2019
SY1 SYDNEY (METRO), AUSTRALIA	—		—		—		—		28,195		—		28,195		(17,494)		2003
SY2 SYDNEY (METRO), AUSTRALIA	—		—		3,080		—		23,572		—		26,652		(20,289)		2008
SY3 SYDNEY (METRO), AUSTRALIA	—		—		8,712		—		140,746		—		149,458		(68,935)		2010
SY4 SYDNEY (METRO), AUSTRALIA	—		—		—		—		160,001		—		160,001		(28,402)		2014
SY5 SYDNEY (METRO), AUSTRALIA	—		82,091		—		—		167,426		82,091		167,426		(374)		2018
SY6 SYDNEY (METRO), AUSTRALIA	—		8,859		64,197		—		5,540		8,859		69,737		(5,847)		2018

---

	Initial Costs to Company (1)						Costs Capitalized Subsequent to Acquisition or Lease				Total Costs
	Encumbrances		Land		Buildings and Improvements (2)		Land		Buildings and Improvements (2)		Land		Buildings and Improvements (2)		Accumulated Depreciation (3)		Date of Acquisition or Lease (4)
SY7 SYDNEY (METRO), AUSTRALIA	—		2,745		47,350		—		3,057		2,745		50,407		(3,921)		2018
SY8 SYDNEY (METRO), AUSTRALIA	—		—		1,073		—		367		—		1,440		(487)		2018
TY1 TOKYO (METRO), JAPAN	—		—		—		—		23,400		—		23,400		(18,214)		2000
TY2 TOKYO (METRO), JAPAN	—		—		—		—		90,190		—		90,190		(65,613)		2006
TY3 TOKYO (METRO), JAPAN	—		—		—		—		78,646		—		78,646		(39,806)		2010
TY4 TOKYO (METRO), JAPAN	—		—		—		—		75,422		—		75,422		(26,281)		2012
TY5 TOKYO (METRO), JAPAN	—		—		102		—		57,228		—		57,330		(13,578)		2014
TY6 TOKYO (METRO), JAPAN	—		—		37,941		—		11,992		—		49,933		(25,728)		2015
TY7 TOKYO (METRO), JAPAN	—		—		13,175		—		5,958		—		19,133		(11,043)		2015
TY8 TOKYO (METRO), JAPAN	—		—		53,848		—		7,981		—		61,829		(22,012)		2015
TY9 TOKYO (METRO), JAPAN	—		—		106,710		—		20,043		—		126,753		(63,550)		2015
TY10 TOKYO (METRO), JAPAN	—		—		69,881		—		17,422		—		87,303		(20,679)		2015
TY11 TOKYO (METRO), JAPAN	—		—		22,099		—		134,708		—		156,807		(3,320)		2018
TY12x TOKYO (METRO), JAPAN	—		10,285		—		101		66,560		10,386		66,560		—		2018
OTHERS (5)	—		14,536		875		—		14,593		14,536		15,468		(8,213)		Various
TOTAL LOCATIONS	$30,310		$509,259		$3,777,257		$277,406		$12,363,410		$786,665		$16,140,667		$(5,329,182)

(1)	The initial cost was $0 if the lease of the respective IBX was classified as an operating lease.

(2)	Building and improvements include all fixed assets except for land.

(3)	Buildings and improvements are depreciated on a straight line basis over estimated useful live as described under described in Note 1 within the Consolidated Financial Statements.

(4)	Date of lease or acquisition represents the date the Company leased the facility or acquired the facility through purchase or acquisition.

(5)	Includes various IBXs that are under initial development and costs incurred at certain central locations supporting various IBX functions.

The aggregate gross cost of the Company's properties for federal income tax purpose approximated $23,111.1 million (unaudited) as of December 31, 2019.

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The following table reconciles the historical cost of the Company's properties for financial reporting purposes for each of the years in the three-year period ended December 31, 2019 (in thousands).

Gross Fixed Assets:

	2019				2018				2017
Balance, beginning of period	$	15,020,198			$	12,947,735			$	9,855,811
ASC 842 adoption impact (1)	(276,671		)		—				—
Additions (including acquisitions and improvements)	2,632,472				2,756,218				2,508,333
Disposals	(463,485		)		(289,157		)		(78,886		)
Foreign currency transaction adjustments and others	14,818				(394,598		)		662,477
Balance, end of year	$	16,927,332			$	15,020,198			$	12,947,735

Accumulated Depreciation:

	2019				2018				2017
Balance, beginning of period	$	(4,517,016	)		$	(3,980,198	)		$	(3,175,972	)
ASC 842 adoption impact (1)	(7,846		)		—				—
Additions (depreciation expense)	(926,046		)		(882,848		)		(748,942		)
Disposals	128,352				261,928				65,922
Foreign currency transaction adjustments and others	(6,626		)		84,102				(121,206		)
Balance, end of year	$	(5,329,182	)		$	(4,517,016	)		$	(3,980,198	)

(1)	Upon the adoption of Topic 842 on January 1, 2019, the Company de-recognized certain fixed assets under built-to-suite leases due to the conversion of certain build-to-suit leases to operating leases. See Note 1 within the Consolidated Financial Statements.