CORRESP Filing
IRON MOUNTAIN INC
Date: April 2, 2025 · CIK: 0001020569 · Accession: 0001020569-25-000072
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Document Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2024 (In thousands, except share and per share data) 11. SEGMENT INFORMATION Our Chief Operating Decision Maker (“CODM”), our President and CEO, uses Adjusted EBITDA as the basis for evaluating the performance of, and allocating resources to, our operating segments. The CODM uses Adjusted EBITDA to ensure that resources, including capital, are allocated strategically to support our strategy. Other significant expenses regularly provided to the CODM include total Restructuring and other transformation costs, as disclosed in Note 13. As of December 31, 2024, our two reportable segments are described as follows: (1) Global Records and Information Management ("Global RIM") Business includes several distinct offerings: (i) Records Management, which stores physical records and provides information services, vital records services, courier operations, and the collection, handling and disposal of sensitive documents ("Records Management") for customers in 61 countries around the globe. (ii) Data Management, which provides storage and rotation of backup computer media as part of corporate disaster recovery plans, including service and courier operations, server and computer backup services and related services offerings ("Data Management"). (iii) Global Digital Solutions, which develops, implements and supports comprehensive storage and information management solutions for the complete lifecycle of our customers’ information, including the management of physical records, conversion of documents to digital formats and digital storage of information. In August 2024, we launched the Insight Digital Experience Platform (also referred to as DXP), a secure, software-as-a-service platform designed to automate customer workflows, enhance data accessibility, ensure audit compliance and optimize customer data for artificial intelligence applications. (iv) Secure Shredding, which includes the scheduled pick-up of office records that customers accumulate in specially designed secure containers we provide and is a natural extension of our hardcopy records management operations, completing the lifecycle of a record. Through a combination of shredding facilities and mobile shredding units consisting of custom built trucks, we are able to offer secure shredding services to our customers. (v) Media and Archive Services, which includes entertainment and media services, which help industry clients store, safeguard and deliver physical media of all types, and provides digital content repository systems that house, distribute and archive key media assets. (vi) Consumer Storage, which provides on-demand, valet storage for consumers utilizing data analytics and machine learning to provide effective customer acquisition and a convenient and seamless consumer storage experience. (2) Global Data Center Business, which provides enterprise-class data center facilities and hyperscale-ready capacity to protect mission-critical assets and ensure the continued operation of our customers’ IT infrastructure, with secure, reliable and flexible data center options. The remaining activities of our business consist primarily of our ALM and Fine Arts businesses and Corporate and Other. (i) ALM provides hyperscale and corporate IT infrastructure managers with services and solutions that enable the decommissioning, data erasure, processing and disposition, and recycling or sale of IT hardware and component assets. ALM services are enabled by: secure logistics, chain of custody and complete asset traceability practices, environmentally-responsible asset processing and recycling, and data sanitization and asset refurbishment services that enable value recovery through asset remarketing. In addition, ALM also offers workplace IT asset management services including storage, configuration, deployment, device support, end-of-life disposition and recycling or sale of employee IT devices. Our ALM services focus on protecting and eradicating customer data while maintaining strong, auditable and transparent chain of custody practices. (ii) Fine Arts provides technical expertise in the handling, installation and storing of art. IRON MOUNTAIN 2024 FORM 10-K 1 Table of Contents Part IV (iii) Corporate and Other also includes costs related to executive and staff functions, including finance, human resources and IT, which benefit the enterprise as a whole. 2 IRON MOUNTAIN 2024 FORM 10-K Table of Contents IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2024 (In thousands, except share and per share data) 11. SEGMENT INFORMATION (CONTINUED) The accounting policies of our reportable segments are the same as those described in Note 2. An analysis of our business segment information and reconciliation to the accompanying Consolidated Financial Statements is as follows: GLOBAL RIM BUSINESS GLOBAL DATA CENTER BUSINESS TOTAL REPORTABLE SEGMENTS CORPORATE AND OTHER TOTAL CONSOLIDATED As of and for the Year Ended December 31, 2024 Total Revenues $ 4,979,438 $ 620,028 $ 5,599,466 $ 550,443 $ 6,149,909 Storage Rental 3,009,094 606,294 3,615,388 66,871 3,682,259 Service 1,970,344 13,734 1,984,078 483,572 2,467,650 Other Reportable Segment Expenses (1 ) Items (1 ) 2,756,321 337,515 3,093,836 Adjusted EBITDA 2,223,117 282,513 2,505,630 Total Assets (2) 10,408,885 6,060,608 16,469,493 2,247,622 18,717,115 As of and for the Year Ended December 31, 2023 Total Revenues $ 4,661,776 $ 495,026 $ 5,156,802 $ 323,487 $ 5,480,289 Storage Rental 2,834,352 474,066 3,308,418 62,227 3,370,645 Service 1,827,424 20,960 1,848,384 261,260 2,109,644 Other Reportable Segment Expenses (1 ) Items (1 ) 2,634,739 279,081 2,913,820 Adjusted EBITDA 2,027,037 215,945 2,242,982 Total Assets (2) 10,876,225 4,788,600 15,664,825 1,808,977 17,473,802 As of and for the Year Ended December 31, 2022 Total Revenues $ 4,295,115 $ 401,125 $ 4,696,240 $ 407,334 $ 5,103,574 Storage Rental 2,606,721 372,208 2,978,929 55,094 3,034,023 Service 1,688,394 28,917 1,717,311 352,240 2,069,551 Other Reportable Segment Expenses (1 ) Items (1 ) 2,407,526 225,503 2,633,029 Adjusted EBITDA 1,887,589 175,622 2,063,211 Total Assets (2) 10,654,650 3,752,088 14,406,738 1,733,776 16,140,514 (1) Primarily r R elates to Cost of sales (excluding depreciation and amortization) and Selling, general and administrative expenses for the respective reportable segment. The CODM does not regularly review disaggregated expense information included within “Other Segment Items” for any individual segments but may review consolidated Cost of sales (excluding depreciation and amortization) and consolidated Selling, general and administrative expense information to manage the business . (2) Excludes all intercompany receivables or payables and investment in subsidiary balances. IRON MOUNTAIN 2024 FORM 10-K 3 Table of Contents Part IV Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2024 (In thousands, except share and per share data) 11. SEGMENT INFORMATION (CONTINUED) A reconciliation of Adjusted EBITDA for our reportable segments to total Net Income (Loss) Before Provision (Benefit) for Income Taxes for the years ended December 31, 2024, 2023 and 2022 is as follows: YEAR ENDED DECEMBER 31, 2024 2023 2022 Total Adjusted EBITDA for Reportable Segments $ 2,505,630 $ 2,242,982 $ 2,063,211 Add/(Deduct): Corporate and other (269,250) (281,305) (236,154) Interest expense, net (721,559) (585,932) (488,014) Depreciation and amortization (900,905) (776,159) (727,595) Acquisition and Integration Costs (35,842) (25,875) (47,746) Restructuring and other transformation (161,359) (175,215) (41,933) (Loss) gain on disposal/write-down of property, plant and equipment, net (including real estate) (6,196) 12,825 93,268 Other (expense) income, net, excluding our share of losses (gains) from our unconsolidated joint ventures (39,159) (98,891) 83,268 Stock-based compensation expense (118,138) (73,799) (56,861) Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures (8,684) (11,425) (9,806) Total Net Income (Loss) Before Provision (Benefit) for Income Taxes $ 244,538 $ 227,206 $ 631,638 4 IRON MOUNTAIN 2024 FORM 10-K Table of Contents IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2024 (In thousands, except share and per share data) 11. SEGMENT INFORMATION (CONTINUED) Information as to our operations in different geographical areas for the years ended December 31, 2024, 2023 and 2022 is as follows: YEAR ENDED DECEMBER 31, 2024 2023 2022 Revenues: United States $ 4,008,402 $ 3,507,134 $ 3,262,755 United Kingdom 426,462 393,917 332,556 Canada 303,184 279,325 270,836 Remaining Countries 1,411,861 1,299,913 1,237,427 Long-lived Assets: United States $ 11,399,912 $ 9,492,911 $ 8,925,643 United Kingdom 1,419,582 1,315,715 1,062,641 Canada 612,581 498,511 514,777 Remaining Countries 3,593,818 4,431,120 4,090,308 Information as to our revenues by product and service lines by segment for the years ended December 31, 2024, 2023 and 2022 is as follows: GLOBAL RIM BUSINESS GLOBAL DATA CENTER BUSINESS CORPORATE AND OTHER TOTAL CONSOLIDATED For the Year Ended December 31, 2024 Records Management (1) $ 3,899,109 $ — $ 162,366 $ 4,061,475 Data Management (1) 515,306 — — 515,306 Information Destruction (1)(2)(3) 565,023 — 388,077 953,100 Data Center (1) — 620,028 — 620,028 For the Year Ended December 31, 2023 Records Management (1) $ 3,625,264 $ — $ 146,389 $ 3,771,653 Data Management (1) 520,194 — — 520,194 Information Destruction (1)(2)(3) 516,318 — 177,098 693,416 Data Center (1) — 495,026 — 495,026 For the Year Ended December 31, 2022 Records Management (1) $ 3,287,237 $ — $ 137,845 $ 3,425,082 Data Management (1) 510,107 — 185 510,292 Information Destruction (1)(2)(3) 497,771 — 269,304 767,075 Data Center (1) — 401,125 — 401,125 (1) Each of these offerings has a component of revenue that is storage rental related and a component that is service related, except for information destruction, which does not have a storage rental component. (2) Information destruction revenue for our Global RIM Business includes secure shredding services. (3) Information destruction revenue for Corporate and Other includes product revenue from our ALM business. IRON MOUNTAIN 2024 FORM 10-K 5
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Document Table of Contents Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2024 (In thousands, except share and per share data) 11. SEGMENT INFORMATION Our Chief Operating Decision Maker (“CODM”), our President and CEO, uses Adjusted EBITDA as the basis for evaluating the performance of, and allocating resources to, our operating segments. The CODM uses Adjusted EBITDA to ensure that resources, including capital, are allocated strategically to support our strategy. Other significant expenses regularly provided to the CODM include total Restructuring and other transformation costs, as disclosed in Note 13. As of December 31, 2024, our two reportable segments are described as follows: (1) Global Records and Information Management ("Global RIM") Business includes several distinct offerings: (i) Records Management, which stores physical records and provides information services, vital records services, courier operations, and the collection, handling and disposal of sensitive documents ("Records Management") for customers in 61 countries around the globe. (ii) Data Management, which provides storage and rotation of backup computer media as part of corporate disaster recovery plans, including service and courier operations, server and computer backup services and related services offerings ("Data Management"). (iii) Global Digital Solutions, which develops, implements and supports comprehensive storage and information management solutions for the complete lifecycle of our customers’ information, including the management of physical records, conversion of documents to digital formats and digital storage of information. In August 2024, we launched the Insight Digital Experience Platform (also referred to as DXP), a secure, software-as-a-service platform designed to automate customer workflows, enhance data accessibility, ensure audit compliance and optimize customer data for artificial intelligence applications. (iv) Secure Shredding, which includes the scheduled pick-up of office records that customers accumulate in specially designed secure containers we provide and is a natural extension of our hardcopy records management operations, completing the lifecycle of a record. Through a combination of shredding facilities and mobile shredding units consisting of custom built trucks, we are able to offer secure shredding services to our customers. (v) Media and Archive Services, which includes entertainment and media services, which help industry clients store, safeguard and deliver physical media of all types, and provides digital content repository systems that house, distribute and archive key media assets. (vi) Consumer Storage, which provides on-demand, valet storage for consumers utilizing data analytics and machine learning to provide effective customer acquisition and a convenient and seamless consumer storage experience. (2) Global Data Center Business, which provides enterprise-class data center facilities and hyperscale-ready capacity to protect mission-critical assets and ensure the continued operation of our customers’ IT infrastructure, with secure, reliable and flexible data center options. The remaining activities of our business consist primarily of our ALM and Fine Arts businesses and Corporate and Other. (i) ALM provides hyperscale and corporate IT infrastructure managers with services and solutions that enable the decommissioning, data erasure, processing and disposition, and recycling or sale of IT hardware and component assets. ALM services are enabled by: secure logistics, chain of custody and complete asset traceability practices, environmentally-responsible asset processing and recycling, and data sanitization and asset refurbishment services that enable value recovery through asset remarketing. In addition, ALM also offers workplace IT asset management services including storage, configuration, deployment, device support, end-of-life disposition and recycling or sale of employee IT devices. Our ALM services focus on protecting and eradicating customer data while maintaining strong, auditable and transparent chain of custody practices. (ii) Fine Arts provides technical expertise in the handling, installation and storing of art. IRON MOUNTAIN 2024 FORM 10-K 1 Table of Contents Part IV (iii) Corporate and Other also includes costs related to executive and staff functions, including finance, human resources and IT, which benefit the enterprise as a whole. 2 IRON MOUNTAIN 2024 FORM 10-K Table of Contents IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2024 (In thousands, except share and per share data) 11. SEGMENT INFORMATION (CONTINUED) The accounting policies of our reportable segments are the same as those described in Note 2. An analysis of our business segment information and reconciliation to the accompanying Consolidated Financial Statements is as follows: GLOBAL RIM BUSINESS GLOBAL DATA CENTER BUSINESS TOTAL REPORTABLE SEGMENTS CORPORATE AND OTHER TOTAL CONSOLIDATED As of and for the Year Ended December 31, 2024 Total Revenues $ 4,979,438 $ 620,028 $ 5,599,466 $ 550,443 $ 6,149,909 Storage Rental 3,009,094 606,294 3,615,388 66,871 3,682,259 Service 1,970,344 13,734 1,984,078 483,572 2,467,650 Other Reportable Segment Expenses (1 ) Items (1 ) 2,756,321 337,515 3,093,836 Adjusted EBITDA 2,223,117 282,513 2,505,630 Total Assets (2) 10,408,885 6,060,608 16,469,493 2,247,622 18,717,115 As of and for the Year Ended December 31, 2023 Total Revenues $ 4,661,776 $ 495,026 $ 5,156,802 $ 323,487 $ 5,480,289 Storage Rental 2,834,352 474,066 3,308,418 62,227 3,370,645 Service 1,827,424 20,960 1,848,384 261,260 2,109,644 Other Reportable Segment Expenses (1 ) Items (1 ) 2,634,739 279,081 2,913,820 Adjusted EBITDA 2,027,037 215,945 2,242,982 Total Assets (2) 10,876,225 4,788,600 15,664,825 1,808,977 17,473,802 As of and for the Year Ended December 31, 2022 Total Revenues $ 4,295,115 $ 401,125 $ 4,696,240 $ 407,334 $ 5,103,574 Storage Rental 2,606,721 372,208 2,978,929 55,094 3,034,023 Service 1,688,394 28,917 1,717,311 352,240 2,069,551 Other Reportable Segment Expenses (1 ) Items (1 ) 2,407,526 225,503 2,633,029 Adjusted EBITDA 1,887,589 175,622 2,063,211 Total Assets (2) 10,654,650 3,752,088 14,406,738 1,733,776 16,140,514 (1) Primarily r R elates to Cost of sales (excluding depreciation and amortization) and Selling, general and administrative expenses for the respective reportable segment. The CODM does not regularly review disaggregated expense information included within “Other Segment Items” for any individual segments but may review consolidated Cost of sales (excluding depreciation and amortization) and consolidated Selling, general and administrative expense information to manage the business . (2) Excludes all intercompany receivables or payables and investment in subsidiary balances. IRON MOUNTAIN 2024 FORM 10-K 3 Table of Contents Part IV Part IV IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2024 (In thousands, except share and per share data) 11. SEGMENT INFORMATION (CONTINUED) A reconciliation of Adjusted EBITDA for our reportable segments to total Net Income (Loss) Before Provision (Benefit) for Income Taxes for the years ended December 31, 2024, 2023 and 2022 is as follows: YEAR ENDED DECEMBER 31, 2024 2023 2022 Total Adjusted EBITDA for Reportable Segments $ 2,505,630 $ 2,242,982 $ 2,063,211 Add/(Deduct): Corporate and other (269,250) (281,305) (236,154) Interest expense, net (721,559) (585,932) (488,014) Depreciation and amortization (900,905) (776,159) (727,595) Acquisition and Integration Costs (35,842) (25,875) (47,746) Restructuring and other transformation (161,359) (175,215) (41,933) (Loss) gain on disposal/write-down of property, plant and equipment, net (including real estate) (6,196) 12,825 93,268 Other (expense) income, net, excluding our share of losses (gains) from our unconsolidated joint ventures (39,159) (98,891) 83,268 Stock-based compensation expense (118,138) (73,799) (56,861) Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures (8,684) (11,425) (9,806) Total Net Income (Loss) Before Provision (Benefit) for Income Taxes $ 244,538 $ 227,206 $ 631,638 4 IRON MOUNTAIN 2024 FORM 10-K Table of Contents IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2024 (In thousands, except share and per share data) 11. SEGMENT INFORMATION (CONTINUED) Information as to our operations in different geographical areas for the years ended December 31, 2024, 2023 and 2022 is as follows: YEAR ENDED DECEMBER 31, 2024 2023 2022 Revenues: United States $ 4,008,402 $ 3,507,134 $ 3,262,755 United Kingdom 426,462 393,917 332,556 Canada 303,184 279,325 270,836 Remaining Countries 1,411,861 1,299,913 1,237,427 Long-lived Assets: United States $ 11,399,912 $ 9,492,911 $ 8,925,643 United Kingdom 1,419,582 1,315,715 1,062,641 Canada 612,581 498,511 514,777 Remaining Countries 3,593,818 4,431,120 4,090,308 Information as to our revenues by product and service lines by segment for the years ended December 31, 2024, 2023 and 2022 is as follows: GLOBAL RIM BUSINESS GLOBAL DATA CENTER BUSINESS CORPORATE AND OTHER TOTAL CONSOLIDATED For the Year Ended December 31, 2024 Records Management (1) $ 3,899,109 $ — $ 162,366 $ 4,061,475 Data Management (1) 515,306 — — 515,306 Information Destruction (1)(2)(3) 565,023 — 388,077 953,100 Data Center (1) — 620,028 — 620,028 For the Year Ended December 31, 2023 Records Management (1) $ 3,625,264 $ — $ 146,389 $ 3,771,653 Data Management (1) 520,194 — — 520,194 Information Destruction (1)(2)(3) 516,318 — 177,098 693,416 Data Center (1) — 495,026 — 495,026 For the Year Ended December 31, 2022 Records Management (1) $ 3,287,237 $ — $ 137,845 $ 3,425,082 Data Management (1) 510,107 — 185 510,292 Information Destruction (1)(2)(3) 497,771 — 269,304 767,075 Data Center (1) — 401,125 — 401,125 (1) Each of these offerings has a component of revenue that is storage rental related and a component that is service related, except for information destruction, which does not have a storage rental component. (2) Information destruction revenue for our Global RIM Business includes secure shredding services. (3) Information destruction revenue for Corporate and Other includes product revenue from our ALM business. IRON MOUNTAIN 2024 FORM 10-K 5