Iron Mountain Incorporated : INC Management's Discussion and Analysis of Financial Condition and Results of Operations. (form 10-K)

The following discussion should be read in conjunction with "Item 6. Selected
Financial Data" and the Consolidated Financial Statements and Notes thereto and
the other financial and operating information included elsewhere in this Annual
Report.

This discussion contains "forward-looking statements" as that term is defined in
the Private Securities Litigation Reform Act of 1995 and in other securities
laws. See "Cautionary Note Regarding Forward-Looking Statements" on page iii of
this Annual Report and "Item 1A. Risk Factors" beginning on page 7 of this
Annual Report.

Overview

Project Summit

In October 2019, we announced Project Summit. Project Summit focuses on
simplifying our global structure by combining our core records and information
management operations under one global leader and rebalancing our resources,
streamlining managerial structures and leveraging our global and regional
customer facing resources. We are also implementing systems and process changes
designed to make our organization more agile and dynamic, streamline our
organization and reallocate our resources to better align with our strategic
goals as part of Project Summit. As a result of the program, we expect to reduce
the number of positions at vice president and above by approximately 45%. The
total program is expected to have reduced our total managerial and
administrative workforce by approximately 700 positions by the end of 2021.

The activities associated with Project Summit began in the fourth quarter of
2019 and are expected to be substantially complete by the end of 2021. We expect
the total program benefits associated with Project Summit to be fully realized
by the end of 2022. We estimate that Project Summit will improve Adjusted EBITDA
(as defined below) by approximately $200.0 million by the end of 2022. We expect
Project Summit to improve Adjusted EBITDA by approximately $80.0 million in
2020, of which we expect to realize approximately $50.0 million of Adjusted
EBITDA improvement as a result of the actions initiated during the fourth
quarter of 2019. We will continue to evaluate our overall operating model, as
well as various opportunities and initiatives, including those associated with
real estate consolidation, system implementation and process changes, which
could result in the identification and implementation of additional actions
associated with Project Summit and incremental costs and benefits.

We estimate that the implementation of Project Summit will result in total costs
(including operating expenditures ("Restructuring Charges") and capital
expenditures) of approximately $240.0 million. During the fourth quarter of
2019, we incurred approximately $48.6 million of costs related to Project
Summit, which were comprised entirely of Restructuring Charges primarily related
to employee severance costs and professional fees.

During the fourth quarter of 2019, as a result of the realignment of our global
managerial structure and changes to our internal financial reporting associated
with Project Summit, we reassessed the composition of our reportable operating
segments and reporting units. As a result of the managerial structure changes
associated with Project Summit, we now have the following reportable operating
segments: (i) Global RIM Business (which consists of the former North American
Records and Information Management Business (excluding our technology escrow
services business, which is now included as a component of our Corporate and
Other Business segment), North American Data Management Business, Western
European Business and Other International Business); (ii) Global Data Center
Business; and (iii) Corporate and Other Business (which includes our Adjacent
Businesses and our technology escrow services business). As a result of these
changes, previously reported segment information has been restated to conform to
the current presentation.

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IODC Acquisition

On January 10, 2018, we completed the IODC Transaction and at the closing of the
IODC Transaction, we paid approximately $1,347.0 million. In February 2019, we
paid approximately $31.0 million in additional purchase price associated with
the execution of customer contracts from the closing through the one-year
anniversary of the IODC Transaction. See Note 6 to Notes to Consolidated
Financial Statements included in this Annual Report for unaudited pro forma
results of operations for us and IODC for the years ended December 31, 2018 and
2017, as if the IODC Transaction was completed on January 1, 2017.

Divestments

a. Consumer Storage Transaction

On March 19, 2019, we contributed our customer contracts and certain
intellectual property and other assets used by us to operate our consumer
storage business in the United States and Canada (the "IM Consumer Storage
Assets") and approximately $20.0 million in cash (gross of certain transaction
expenses) (the "Cash Contribution") to the MakeSpace JV (the "Consumer Storage
Transaction"). Upon the closing of the Consumer Storage Transaction on March 19,
2019, the MakeSpace JV owned (i) the IM Consumer Storage Assets, (ii) the Cash
Contribution and (iii) the customer contracts, intellectual property and certain
other assets used by MakeSpace to operate its consumer storage business in the
United States. As part of the Consumer Storage Transaction, we received an
equity interest of approximately 34% in the MakeSpace JV (the "MakeSpace
Investment").

As described in Note 13 to Notes to Consolidated Financial Statements included
in this Annual Report, the divestment of the IM Consumer Storage Assets in the
Consumer Storage Transaction does not meet the criteria to be reported as
discontinued operations in our consolidated financial statements. In connection
with the Consumer Storage Transaction and the MakeSpace Investment, we also
entered into a storage and service agreement with the MakeSpace JV to provide
certain storage and related services to the MakeSpace JV (the "MakeSpace
Agreement"). Revenues and expenses associated with the MakeSpace Agreement are
presented as a component of our Global RIM Business segment. We recognized
approximately $22.5 million of revenue for the year ended December 31, 2019
associated with the MakeSpace Agreement.

As a result of the Consumer Storage Transaction, we recorded a gain on sale of
approximately $4.2 million to Other expense (income), net, in the first quarter
of 2019, representing the excess of the fair value of the consideration received
over the sum of (i) carrying value of our consumer storage operations and (ii)
the Cash Contribution.

b.  IMFS Divestment

On September 28, 2018, Iron Mountain Fulfillment Services, Inc. ("IMFS"), a
consolidated subsidiary of IMI that operated our fulfillment services business
in the United States, sold substantially all of its assets for total
consideration of approximately $3.0 million (the "IMFS Divestment"). We have
concluded that the IMFS Divestment does not meet the criteria to be reported as
discontinued operations in our consolidated financial statements, as our
decision to divest this business does not represent a strategic shift that will
have a major effect on our operations and financial results. Accordingly, the
revenues and expenses associated with this business are presented as a component
of Income (loss) from continuing operations in our Consolidated Statements of
Operations for the years ended December 31, 2018 and 2017 and the cash flows
associated with this business are presented as a component of cash flows from
continuing operations in our Consolidated Statements of Cash Flows for the years
ended December 31, 2018 and 2017 through the sale date. The fair value of the
consideration received as a result of the IMFS Divestment approximated the
carrying value of IMFS and, therefore, during the third quarter of 2018, we
recorded an insignificant loss in connection with the IMFS Divestment to Other
(income) expense, net. Our IMFS business represented approximately $20.2 million
and $22.3 million of total revenues for the years ended December 2018 and 2017,
respectively. Our IMFS business represented approximately $1.6 million and $2.1
million of total Income (loss) from continuing operations for the years ended
December 31, 2018 and 2017, respectively. Revenues for the year ended December
31, 2018 reflect the impact of the adoption of ASU 2014-09 whereas revenues for
the year ended December 31, 2017 do not.


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c. Russia and Ukraine Divestment

See Note 13 to Notes to Consolidated Financial Statements included in this Annual Report for details regarding the divestment of our records and information management operations in Russia and Ukraine to OSG Records Management (Europe) Limited ("OSG").

In connection with the divestment, we became a holder of 25% of the equity interest in OSG. On January 9, 2020, we acquired the remaining 75% equity interest in OSG. See Note 15 to Notes to Consolidated Financial Statements included in this Annual Report for additional information on the acquisition of OSG.

Significant Acquisition Costs

Our significant acquisition costs represent operating expenditures associated
with (1) our acquisition of Recall that we completed on May 2, 2016 (the "Recall
Transaction"), including: (i) advisory and professional fees to complete the
Recall Transaction; (ii) costs associated with the Divestments (as defined in
Note 13 to Notes to Consolidated Financial Statements included in this Annual
Report) required in connection with receipt of regulatory approvals (including
transitional services); and (iii) costs to integrate Recall with our existing
operations, including moving, severance, facility upgrade, REIT integration and
system upgrade costs, as well as certain costs associated with our shared
service center initiative for our finance, human resources and information
technology functions; and (2) the advisory and professional fees to complete the
IODC Transaction (collectively, "Significant Acquisition Costs").

Total acquisition and integration expenditures associated with the Recall
Transaction and the IODC Transaction were approximately $403.8 million, the
substantial majority of which was incurred prior to the end of 2018. From
January 1, 2015 through December 31, 2019, we incurred cumulative operating and
capital expenditures associated with the Recall Transaction and the IODC
Transaction of $327.8 million of Significant Acquisition Costs and $76.0 million
of capital expenditures.

Immaterial Restatement

In June 2019, we received a notification of assessment from tax and customs
authorities in the Netherlands related to a VAT liability of approximately 16.8
million Euros primarily related to the years ending December 31, 2018 and 2017.
We have established a reserve for this matter based upon our estimate of the
amount of loss that is both probable and estimable, including interest and
penalties, and have reflected this reserve through an immaterial restatement of
our consolidated financial statements. As a result, certain line items in our
Consolidated Statements of Operations for the years ended December 31, 2018 and
2017 have been restated to reflect the immaterial restatement. See Note 2.y. to
Notes to Consolidated Financial Statements included in this Annual Report for
additional information regarding the effect of the immaterial restatement on
certain line items in our Consolidated Statements of Operations for the years
ended December 31, 2018 and 2017.

Adoption of ASU 2014-09, Revenue from Contracts with Customers

In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU
2014-09. We adopted ASU 2014-09 as of January 1, 2018 using the modified
retrospective method for all of our customer contracts, whereby the cumulative
effect of applying ASU 2014-09 is recognized at the date of initial application.
See Note 2.l. to Notes to Consolidated Financial Statements included in this
Annual Report for information on the impact to opening balance of (Distributions
in excess of earnings) Earnings in excess of distributions on our Consolidated
Balance Sheets.

As a result of the adoption of ASU 2014-09, Adjusted EBITDA for the year ended
December 31, 2018 increased by approximately $25.3 million, compared to the
prior year period. The adoption of ASU 2014-09 did not have a material impact on
Adjusted EPS, FFO (Nareit) or FFO (Normalized) for the year ended December 31,
2018 compared to the prior year period. The revenues for the year ended
December 31, 2018 reflect a net $14.2 million, reclassification of certain
components of storage rental revenues to service revenues associated with the
adoption of ASU 2014-09.

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Changes Impacting Comparability with Prior Year

In 2019, we made the following changes which impacted the results of fiscal
years 2018 and 2017 and the accompanying management discussion and analysis that
was presented in previous filings: (i) as a result of the changes associated
with Project Summit, in the fourth quarter of 2019, we created a newly formed
Global RIM Business reportable operating segment, which is comprised of the
majority of our former North American Records and Information Management
Business, North American Data Management Business, Western European Business and
Other International Business reportable operating segments; (ii) in the first
quarter of 2019, we began to present gains on sale of real estate as a component
of operating income in the line item (Gain) loss on disposal/write-down of
property, plant and equipment, gross of tax (with any tax impact presented
within Provision (benefit) for income taxes); and (iii) in the fourth quarter of
2019, we began to present Significant Acquisition Costs as its own line item
within Operating Expenses in our Consolidated Statements of Operations, rather
than as components of Selling, general and administrative expenses and Cost of
sales. As a result of these changes, we have included management discussion and
analysis of 2018 compared to 2017 for these three items under the "Segment
Analysis", "Gain on Disposal/Write-Down of Property, Plant and Equipment, Net"
and "Significant Acquisition Costs" sections in this Item 7. All other
management discussion and analysis related to 2018 and 2017 has been excluded,
as there have been no material changes to what was included in previous filings.
See "Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations" in our Annual Report on Form 10-K for the year ended
December 31, 2018 for a comparison of 2018 to 2017.

General

Our revenues consist of storage rental revenues as well as service revenues and
are reflected net of sales and value-added taxes. Storage rental revenues, which
are considered a key driver of financial performance for the storage and
information management services industry, consist primarily of recurring
periodic rental charges related to the storage of materials or data (generally
on a per unit basis) that are typically retained by customers for many years,
technology escrow services that protect and manage source code and revenues
associated with our data center operations. Service revenues include charges for
related service activities, the most significant of which include: (1) the
handling of records, including the addition of new records, temporary removal of
records from storage, refiling of removed records and courier operations,
consisting primarily of the pickup and delivery of records upon customer
request; (2) destruction services, consisting primarily of secure shredding of
sensitive documents and the subsequent sale of shredded paper for recycling, the
price of which can fluctuate from period to period, and customer termination and
permanent removal fees; (3) other services, including the scanning, imaging and
document conversion services of active and inactive records and project
revenues; and (4) consulting services. Our service revenue growth has been
negatively impacted by declining activity rates as stored records are becoming
less active. While customers continue to store their records and tapes with us,
they are less likely than they have been in the past to retrieve records for
research and other purposes, thereby reducing service activity levels.

Cost of sales (excluding depreciation and amortization) consists primarily of
wages and benefits for field personnel, facility occupancy costs (including rent
and utilities), transportation expenses (including vehicle leases and fuel),
other product cost of sales and other equipment costs and supplies. Of these,
wages and benefits and facility occupancy costs are the most significant.
Selling, general and administrative expenses consist primarily of wages and
benefits for management, administrative, IT, sales, account management and
marketing personnel, as well as expenses related to communications and data
processing, travel, professional fees, bad debts, training, office equipment and
supplies.

Trends in facility occupancy costs are impacted by the total number of
facilities we occupy, the mix of properties we own versus properties we occupy
under leases, fluctuations in per square foot occupancy costs, and the levels of
utilization of these properties. Trends in total wages and benefits in dollars
and as a percentage of total consolidated revenue are influenced by changes in
headcount and compensation levels, achievement of incentive compensation
targets, workforce productivity and variability in costs associated with medical
insurance and workers' compensation.

The expansion of our international businesses has impacted the major cost of
sales components and selling, general and administrative expenses. Our
international operations are more labor intensive relative to revenue than our
operations in North America and, therefore, labor costs are a higher percentage
of international operational revenue. In addition, the overhead structure of our
expanding international operations has generally not achieved the same level of
overhead leverage as our North American operations, which may result in an
increase in selling, general and administrative expenses as a percentage of
consolidated revenue as our international operations become a larger percentage
of our consolidated results.

Our depreciation and amortization charges result primarily from depreciation
related to storage systems, which include racking structures, buildings,
building and leasehold improvements and computer systems hardware and software.
Amortization relates primarily to customer relationship intangible assets,
contract fulfillment costs and data center lease-based intangible assets. Both
depreciation and amortization are impacted by the timing of acquisitions.

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Our consolidated revenues and expenses are subject to the net effect of foreign
currency translation related to our operations outside the United States. It is
difficult to predict the future fluctuations of foreign currency exchange rates
and how those fluctuations will impact our Consolidated Statements of
Operations. As a result of the relative size of our international operations,
these fluctuations may be material on individual balances. Our revenues and
expenses from our international operations are generally denominated in the
local currency of the country in which they are derived or incurred. Therefore,
the impact of currency fluctuations on our operating income and operating margin
is partially mitigated. In order to provide a framework for assessing how our
underlying businesses performed excluding the effect of foreign currency
fluctuations, we compare the percentage change in the results from one period to
another period in this report using constant currency presentation. The constant
currency growth rates are calculated by translating the 2018 results at the 2019
average exchange rates and the 2017 results at the 2018 average exchange rates.
Constant currency growth rates are a non-GAAP measure.

The following table is a comparison of underlying average exchange rates of the
foreign currencies that had the most significant impact on our United States
dollar-reported revenues and expenses:

                                       Percentage of                   Average Exchange
                                       United States                    Rates for the               Percentage
                              Dollar-Reported Revenue for the             Year Ended             Strengthening /
                                  Year Ended December 31,                December 31,             (Weakening) of
                                  2019                  2018          2019          2018         Foreign Currency
Australian dollar                3.4 %                    3.7 %   $    0.695     $   0.748              (7.1 )%
Brazilian real                   2.6 %                    2.9 %   $    0.254     $   0.276              (8.0 )%
British pound sterling           6.4 %                    6.6 %   $    1.277     $   1.335              (4.3 )%
Canadian dollar                  5.7 %                    5.9 %   $    0.754     $   0.772              (2.3 )%
Euro                             7.4 %                    7.3 %   $    1.120     $   1.181              (5.2 )%



                                       Percentage of                   Average Exchange
                                       United States                    Rates for the              Percentage
                              Dollar-Reported Revenue for the             Year Ended             Strengthening /
                                  Year Ended December 31,                December 31,            (Weakening) of
                                  2018                  2017          2018          2017        Foreign Currency
Australian dollar                3.7 %                    4.1 %   $    0.748     $   0.767              (2.5 )%
Brazilian real                   2.9 %                    3.6 %   $    0.276     $   0.313             (11.8 )%
British pound sterling           6.6 %                    6.4 %   $    1.335     $   1.288               3.6  %
Canadian dollar                  5.9 %                    6.3 %   $    0.772     $   0.771               0.1  %
Euro                             7.3 %                    6.7 %   $    1.181     $   1.130               4.5  %



The percentage of United States dollar-reported revenues for all other foreign
currencies was 12.7%, 12.6% and 12.8% for the years ended December 31, 2019,
2018 and 2017, respectively.


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Non-GAAP Measures

Adjusted EBITDA

Adjusted EBITDA is defined as income (loss) from continuing operations before
interest expense, net, provision (benefit) for income taxes, depreciation and
amortization, and also excludes certain items that we believe are not indicative
of our core operating results, specifically: (1) (gain) loss on
disposal/write-down of property, plant and equipment, net (including real
estate); (2) intangible impairments; (3) other expense (income), net (which
includes foreign currency transaction (gains) losses, net); (4) Significant
Acquisition Costs; and (5) Restructuring Charges. Adjusted EBITDA Margin is
calculated by dividing Adjusted EBITDA by total revenues. We use multiples of
current or projected Adjusted EBITDA in conjunction with our discounted cash
flow models to determine our estimated overall enterprise valuation and to
evaluate acquisition targets. We believe Adjusted EBITDA and Adjusted EBITDA
Margin provide our current and potential investors with relevant and useful
information regarding our ability to generate cash flows to support business
investment. These measures are an integral part of the internal reporting system
we use to assess and evaluate the operating performance of our business.

Adjusted EBITDA excludes both interest expense, net and the provision (benefit)
for income taxes. These expenses are associated with our capitalization and tax
structures, which we do not consider when evaluating the operating profitability
of our core operations. Finally, Adjusted EBITDA does not include depreciation
and amortization expenses, in order to eliminate the impact of capital
investments, which we evaluate by comparing capital expenditures to incremental
revenue generated and as a percentage of total revenues. Adjusted EBITDA and
Adjusted EBITDA Margin should be considered in addition to, but not as a
substitute for, other measures of financial performance reported in accordance
with accounting principles generally accepted in the United States of America
("GAAP"), such as operating income, income (loss) from continuing operations,
net income (loss) or cash flows from operating activities from continuing
operations (as determined in accordance with GAAP).

Reconciliation of Income (Loss) from Continuing Operations to Adjusted EBITDA
(in thousands):
                                                           Year Ended December 31,
                                     2019            2018            2017            2016           2015
Income (Loss) from Continuing
Operations                       $   268,211     $   367,558     $   178,015     $   103,880     $ 125,203
Add/(Deduct):
Provision (Benefit) for Income
Taxes                                 59,931          42,753          22,962          45,074        37,922
Other Expense (Income), Net           33,898         (11,692 )        79,429          44,300        98,590
Interest Expense, Net                419,298         409,648         353,645         310,662       263,871
(Gain) Loss on
disposal/write-down of property,
plant and equipment, net             (63,824 )       (73,622 )          (766 )          (898 )       1,941
Depreciation and amortization        658,201         639,514         522,376         452,326       345,464
Significant Acquisition Costs         13,293          50,665          84,901         131,944        47,014
Restructuring Charges                 48,597               -               -               -             -
Intangible impairments                     -               -           3,011               -             -
Adjusted EBITDA                  $ 1,437,605     $ 1,424,824     $ 1,243,573     $ 1,087,288     $ 920,005







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Adjusted EPS

Adjusted EPS is defined as reported earnings per share fully diluted from
continuing operations excluding: (1) (gain) loss on disposal/write-down of
property, plant and equipment, net (including real estate); (2) intangible
impairments; (3) other expense (income), net (which includes foreign currency
transaction (gains) losses, net); (4) Significant Acquisition Costs; (5)
Restructuring Charges; and (6) the tax impact of reconciling items and discrete
tax items. Adjusted EPS includes income (loss) attributable to noncontrolling
interests. We do not believe these excluded items to be indicative of our
ongoing operating results, and they are not considered when we are forecasting
our future results. We believe Adjusted EPS is of value to our current and
potential investors when comparing our results from past, present and future
periods.

Reconciliation of Reported EPS-Fully Diluted from Continuing Operations to Adjusted EPS-Fully Diluted from Continuing Operations:

                                                          Year Ended 

December 31,

                                           2019        2018        2017        2016        2015
Reported EPS-Fully Diluted from
Continuing Operations                    $  0.93     $  1.28     $  0.66     $  0.41     $  0.59
Add/(Deduct):
Income (Loss) Attributable to
Noncontrolling Interests                       -           -        0.01        0.01           -
Other Expense (Income), Net                 0.12       (0.04 )      0.30        0.18        0.46
(Gain) Loss on disposal/write-down of
property, plant and equipment, net         (0.22 )     (0.25 )     (0.01 )         -        0.01
Significant Acquisition Costs               0.05        0.18        0.32        0.53        0.22
Restructuring Charges                       0.17           -           -           -           -
Intangible impairments                         -           -        0.01           -           -
Tax Impact of Reconciling Items and
Discrete Tax Items(1)                      (0.02 )     (0.09 )     (0.19 )     (0.06 )     (0.07 )
Adjusted EPS-Fully Diluted from
Continuing Operations(2)                 $  1.02     $  1.07     $  1.10     $  1.07     $  1.21

_______________________________________________________________________________

(1)    The difference between our effective tax rate and our structural tax rate
       (or adjusted effective tax rate) for the years ended December 31, 2019,
       2018, 2017, 2016 and 2015 is primarily due to (i) the reconciling items

above, which impact our reported income (loss) from continuing operations

before provision (benefit) for income taxes but have an insignificant

       impact on our reported provision (benefit) for income taxes and (ii) other
       discrete tax items. Our structural tax rate for purposes of the
       calculation of Adjusted EPS for the years ended December 31, 2019, 2018,
       2017, 2016 and 2015 was 18.2%, 18.2%, 19.7%, 18.5% and 16.8%,
       respectively.

(2) Columns may not foot due to rounding.

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FFO (Nareit) and FFO (Normalized)

Funds from operations ("FFO") is defined by the National Association of Real
Estate Investment Trusts ("Nareit") and us as net income (loss) excluding
depreciation on real estate assets, gains on sale of real estate, net of tax and
amortization of data center leased-based intangibles ("FFO (Nareit)"). FFO
(Nareit) does not give effect to real estate depreciation because these amounts
are computed, under GAAP, to allocate the cost of a property over its useful
life. Because values for well-maintained real estate assets have historically
increased or decreased based upon prevailing market conditions, we believe that
FFO (Nareit) provides investors with a clearer view of our operating
performance. Our most directly comparable GAAP measure to FFO (Nareit) is net
income (loss). Although Nareit has published a definition of FFO, modifications
to FFO (Nareit) are common among REITs as companies seek to provide financial
measures that most meaningfully reflect their particular business. Our
definition of FFO (Normalized) excludes certain items included in FFO (Nareit)
that we believe are not indicative of our core operating results, specifically:
(1) (gain) loss on disposal/write-down of property, plant and equipment
(excluding real estate), net; (2) intangible impairments; (3) other expense
(income), net (which includes foreign currency transaction (gains) losses,
net); (4) real estate financing lease depreciation; (5) Significant Acquisition
Costs; (6) Restructuring Charges; (7) the tax impact of reconciling items and
discrete tax items; (8) (income) loss from discontinued operations, net of tax;
and (9) loss (gain) on sale of discontinued operations, net of tax.

Reconciliation of Net Income (Loss) to FFO (Nareit) and FFO (Normalized) (in
thousands):
                                                           Year Ended December 31,
                                        2019          2018          2017          2016          2015
Net Income (Loss)                    $ 268,315     $ 355,131     $ 171,724     $ 107,233     $ 125,203
Add/(Deduct):
Real Estate Depreciation(1)            303,415       284,804       247,792       218,644       171,640
Gain on Sale of Real Estate, Net of
Tax(2)                                 (99,194 )     (55,328 )      (1,565 )      (2,180 )        (850 )
Data Center Lease-Based Intangible
Assets Amortization(3)                  46,696        43,061           643             -             -
FFO (Nareit)                           519,232       627,668       418,594       323,697       295,993
Add/(Deduct):
Loss (Gain) on disposal/write-down
of property, plant and equipment
(excluding real estate), net            40,763        (9,818 )         799         1,412         3,000
Other Expense (Income), Net(4)          33,898       (11,692 )      79,429        44,300        98,590
Real Estate Financing Lease
Depreciation                            13,364        13,650        11,495         7,614         7,160
Significant Acquisition Costs           13,293        50,665        84,901       131,944        47,014
Restructuring Charges                   48,597             -             -             -             -
Intangible impairments                       -             -         3,011             -             -
Tax Impact of Reconciling Items and
Discrete Tax Items(5)                  (10,208 )     (34,131 )     (49,865 )     (15,019 )     (14,480 )
(Income) Loss from Discontinued
Operations, Net of Tax(6)                 (104 )      12,427         6,291        (3,353 )           -
FFO (Normalized)                     $ 658,835     $ 648,769     $ 554,655     $ 490,595     $ 437,277

_______________________________________________________________________________

(1) Includes depreciation expense related to owned real estate assets (land

improvements, buildings, building improvements, leasehold improvements and

racking), excluding depreciation related to real estate financing leases.

(2)    Tax expense associated with the gain on sale of real estate for the years
       ended December 31, 2019, 2018, 2017, 2016 and 2015 was $5.4 million, $8.5
       million, $0.0 million, $0.1 million and $0.2 million, respectively.

(3) Includes amortization expense for Data Center In-Place Lease Intangible

Assets and Data Center Tenant Relationship Intangible Assets as defined in

       Note 2.i. to Notes to Consolidated Financial Statements included in this
       Annual Report.


(4)    Includes foreign currency transaction losses (gains), net of $24.9

million, $(15.6) million, $43.2 million, $20.4 million, and $70.9 million

for the years ended December 31, 2019, 2018, 2017, 2016 and 2015,

respectively. See Note 2.u. to Notes to Consolidated Financial Statements

       included in this Annual Report for additional information regarding the
       components of Other expense (income), net.



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(5)    Represents the tax impact of (i) the reconciling items above, which
       impacts our reported income (loss) from continuing operations before
       provision (benefit) for income taxes but has an insignificant impact on

our reported provision (benefit) for income taxes and (ii) other discrete

tax items. Discrete tax items resulted in a (benefit) provision for income

taxes of $(1.6) million, $(27.8) million, $(38.3) million, $(2.4) million,

and $(14.6) million for the years ended December 31, 2019, 2018, 2017,

2016 and 2015, respectively.

(6) Net of tax provision (benefit) of $0.0 million, $(0.1) million, $(1.8)

       million, $0.8 million, and $0.0 million for the years ended December 31,
       2019, 2018, 2017, 2016 and 2015, respectively.

Critical Accounting Policies

Our discussion and analysis of our financial condition and results of operations
are based upon our Consolidated Financial Statements, which have been prepared
in accordance with GAAP. The preparation of these financial statements requires
us to make estimates, judgments and assumptions that affect the reported amounts
of assets, liabilities, revenues and expenses, and related disclosure of
contingent assets and liabilities at the date of the financial statements and
for the period then ended. On an ongoing basis, we evaluate the estimates used.
We base our estimates on historical experience, actuarial estimates, current
conditions and various other assumptions that we believe to be reasonable under
the circumstances. These estimates form the basis for making judgments about the
carrying values of assets and liabilities and are not readily apparent from
other sources. Actual results may differ from these estimates. Our critical
accounting policies include the following, which are listed in no particular
order:

Revenue Recognition

Storage rental and service revenues are recognized in the month the respective
storage rental or service is provided, and customers are generally billed on a
monthly basis on contractually agreed-upon terms. Amounts related to future
storage rental or prepaid service contracts for customers where storage rental
fees or services are billed in advance are accounted for as deferred revenue and
recognized ratably over the period the applicable storage rental or service is
provided or performed. Revenues from the sales of products, which are included
as a component of service revenues, are recognized when products are shipped and
title has passed to the customer. Revenues from the sales of products, which
represented less than 2% of consolidated revenues for the year ended
December 31, 2019, have historically not been significant. The performance
obligation is a series of distinct services (as determined for purposes of ASU
2014-09, a "series") that have the same pattern of transfer to the customer that
is satisfied over time. For those contracts that qualify as a series, we have a
right to consideration from the customer in an amount that corresponds directly
with the value of the underlying performance obligation transferred to the
customer to date. This concept is known as "right to invoice" and we are
applying the "right to invoice" practical expedient to all revenues, with the
exception of storage revenues in our Global Data Center Business.

For all of our businesses, with the exception of the storage component of our
Global Data Center Business, each purchasing decision is fully in the control of
the customer and, therefore, consideration beyond the current reporting period
is variable and allocated to the specific period, which is consistent with the
practical expedient described above. Our Global Data Center Business features
storage rental provided to the customer at contractually specified rates over a
fixed contractual period. The storage rental revenue related to the storage
component of our Global Data Center Business is recognized on a straight-line
basis over the contract term. The revenue related to the service component of
our Global Data Center Business is recognized in the period the data center
access or related services are provided.

The costs associated with the initial movement of customer records into physical
storage and certain commissions are considered costs to obtain or fulfill
customer contracts ("Contract Fulfillment Costs"). See Note 2.l. to Notes to
Consolidated Financial Statements included in this Annual Report for information
on each of the Contract Fulfillment Costs recognized under ASU 2014-09.

Accounting for Acquisitions

Part of our growth strategy has been to acquire businesses. The purchase price
of each acquisition has been determined after due diligence of the target
business, market research, strategic planning and the forecasting of expected
future results and synergies. Estimated future results and expected synergies
are subject to revisions as we integrate each acquisition and attempt to
leverage resources.


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During the third quarter of 2017, we adopted ASU No. 2017-01, Business
Combinations (Topic 805): Clarifying the Definition of a Business ("ASU
2017-01"). ASU 2017-01 provides guidance for evaluating whether transactions
should be accounted for as acquisitions of assets or businesses. The guidance
provides a screen to determine when an integrated set of assets and activities
does not qualify to be a business. The screen requires that when substantially
all of the fair value of the gross assets acquired is concentrated in an
identifiable asset or a group of similar identifiable assets, the acquisition
should not be accounted for as the acquisition of a business, but rather the
acquisition of an asset. If an acquisition is determined to be a business,
goodwill is recognized as part of purchase accounting, whereas with the
acquisition of an asset there is no goodwill recognized.

Each acquisition has been accounted for using the acquisition method of
accounting as defined under the applicable accounting standards at the date of
each acquisition. Accounting for acquisitions of a business has resulted in the
capitalization of the cost in excess of the estimated fair value of the net
assets acquired in each of these acquisitions as goodwill. We estimate the fair
values of the assets acquired in each acquisition as of the date of acquisition
and these estimates are subject to adjustment based on the final assessments of
the fair value of intangible assets (primarily customer relationship and data
center lease-based intangible assets), property, plant and equipment (primarily
building, building improvements, leasehold improvements, data center
infrastructure and racking structures), operating leases, contingencies and
income taxes (primarily deferred income taxes). We complete these assessments
within one year of the date of acquisition, as we acquire additional information
impacting our estimates as of the acquisition date. See Note 6 to Notes to
Consolidated Financial Statements included in this Annual Report for a
description of recent acquisitions.

Determining the fair values of the net assets acquired requires management's
judgment and often involves the use of assumptions with respect to future cash
inflows and outflows, discount rates and market data, among other items. As it
relates to our data center acquisitions, the fair values of the net assets
acquired requires management's judgment and often involves the use of
assumptions with respect to (i) certain economic costs (as described more fully
in Note 2.i. to Notes to Consolidated Financial Statements included in this
Annual Report) avoided by acquiring a data center operation with active tenants
that would have otherwise been incurred if the data center operation was
purchased vacant, (ii) market rental rates and (iii) expectations of lease
renewals and extensions. Due to the inherent uncertainty of future events,
actual values of net assets acquired could be different from our estimated fair
values and could have a material impact on our financial statements.

Of the net assets acquired in our acquisitions, the fair value of owned
buildings, including building improvements, customer relationship and data
center lease-based intangible assets, racking structures and operating leases
are generally the most common and most significant. For significant acquisitions
or acquisitions involving new markets or new products, we generally use third
parties to assist us in estimating the fair value of owned buildings, including
building improvements, customer relationship and lease-based intangible assets
and market rental rates for acquired operating leases. For acquisitions that are
not significant or do not involve new markets or new products, we generally use
third parties to assist us in estimating the fair value of acquired owned
buildings, including building improvements, and market rental rates for acquired
operating leases. When not using third party appraisals of the fair value of
acquired net assets, the fair value of acquired customer relationship intangible
assets, above and below market in-place operating leases, and racking structures
is determined internally. The fair value of acquired racking structures is
determined internally by taking current estimated replacement cost at the date
of acquisition for the quantity of racking structures acquired, discounted to
take into account the quality (e.g. age, material and type) of the racking
structures. We use discounted cash flow models to determine the fair value of
customer relationship assets, which requires a significant amount of judgment by
management, including estimating expected lives of the relationships, expected
future cash flows and discount rates. We determine the fair value of tangible
data center assets using an estimated replacement cost at the date of
acquisition, then discounting for age, economic and functional obsolescence.

Our estimates of fair value are based upon assumptions believed to be reasonable
at that time but which are inherently uncertain and unpredictable. Assumptions
may be incomplete or inaccurate, and unanticipated events and circumstances may
occur, which may affect the accuracy of such assumptions. Total property, plant
and equipment acquired in our 2019 acquisitions was approximately $5.4 million.


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Impairment of Tangible and Intangible Assets

Assets subject to depreciation or amortization: We review long-lived assets and
all finite-lived intangible assets for impairment whenever events or changes in
circumstances indicate the carrying amount of such assets may not be
recoverable. Examples of events or circumstances that may be indicative of
impairment include, but are not limited to:

• A significant decrease in the market price of an asset;

• A significant change in the extent or manner in which a long-lived asset

is being used or in its physical condition;

• A significant adverse change in legal factors or in the business climate

that could affect the value of the asset;

• An accumulation of costs significantly greater than the amount originally

expected for the acquisition or construction of an asset;

• A current-period operating or cash flow loss combined with a history of

operating or cash flow losses or a projection or forecast that

demonstrates continuing losses associated with the use of a long-lived

asset; and

• A current expectation that, more likely than not, an asset will be sold or

       otherwise disposed of significantly before the end of its previously
       estimated useful life.



If events indicate the carrying value of such assets may not be recoverable,
recoverability of these assets is determined by comparing the sum of the
forecasted undiscounted net cash flows of the operation to which the assets
relate to their carrying amount. The operations are generally distinguished by
the business segment and geographic region in which they operate. If it is
determined that we are unable to recover the carrying amount of the assets, the
long-lived assets are written down, on a pro rata basis, to fair value. Fair
value is determined based on discounted cash flows or appraised values,
depending upon the nature of the assets.

Goodwill and other indefinite-lived intangible assets not subject to amortization: Goodwill and intangible assets with indefinite lives are not amortized but are reviewed annually for impairment, or more frequently if impairment indicators arise. Other than goodwill, we currently have no intangible assets that have indefinite lives and which are not amortized.

We have selected October 1 as our annual goodwill impairment review date. We
have performed our annual goodwill impairment review as of October 1, 2019, 2018
and 2017. We concluded that as of October 1, 2019 and October 1, 2018, goodwill
was not impaired. As of October 1, 2017, we determined that the fair value of
the Consumer Storage reporting unit was less than its carrying value and,
therefore, we recorded a $3.0 million impairment charge, which represented a
full write-off of all goodwill associated with this reporting unit. We concluded
that the goodwill associated with each of our other reporting units was not
impaired as of October 1, 2017.

Our reporting units at which level we performed our goodwill impairment analysis
as of October 1, 2019 were as follows: (1) North American Records and
Information Management; (2) North American Data Management; (3) Fine Arts; (4)
Entertainment Services; (5) Western Europe; (6) Northern/Eastern Europe and
Middle East and India ("NEE and MEI"); (7) Latin America; (8) Australia, New
Zealand and South Africa ("ANZ SA"); (9) Asia; and (10) Global Data Center. See
Note 2.h. to Notes to Consolidated Financial Statements included in this Annual
Report for a description of our reporting units.


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Based on our goodwill impairment analysis as of October 1, 2019, our reporting
units that had estimated fair values that exceeded their carrying values by
greater than 20% represent approximately $4,023.1 million, or 89.7%, of our
consolidated goodwill balance at December 31, 2019. Our Global Data Center and
Fine Arts reporting units had estimated fair values that exceeded their carrying
values by less than 20%. These reporting units represent approximately $462.1
million, or 10.3%, of our consolidated goodwill balance at December 31, 2019.
The following is a summary of the Global Data Center and Fine Arts reporting
units, including goodwill balances (in thousands), percentage by which the fair
value of these reporting units exceeded its carrying value, and certain key
assumptions used by us in determining the fair value of the reporting unit as of
October 1, 2019:

                                        Percentage by
                                       which the fair
                                        value of the     Key assumptions in

the fair value of reporting unit measurement as of

                                       reporting unit                       

October 1, 2019

                                        exceeded the                        Average annual      Average annual
                                       reporting unit                        contribution          capital
                        Goodwill       carrying value                       margin used in       expenditures        Terminal
                       balance at       as of October                         discounted        as percentage         growth
Reporting Unit       October 1, 2019       1, 2019       Discount rate        cash flow         of revenue(1)         rate(2)

Global Data Center   $     421,032             5.0 %          8.0 %               45.5 %              25.4 %             3.0 %
Fine Arts                   37,479             9.5 %         12.0 %               15.3 %               6.2 %             2.0 %

_______________________________________________________________________________

(1)    For purposes of our goodwill impairment analysis, the term "capital
       expenditures" includes both growth investment and recurring capital
       expenditures.


(2)    Terminal growth rates are applied in year 10 of our discounted cash flow
       analysis.



Reporting unit valuations have generally been determined using a combined
approach based on the present value of future cash flows (the "Discounted Cash
Flow Model") and market multiples (the "Market Approach"). There are inherent
uncertainties and judgments involved when determining the fair value of the
reporting units for purposes of our annual goodwill impairment testing. The
following includes supplemental information to the table above for those
reporting units where the estimated fair values exceeded their carrying values
by less than 20% as of October 1, 2019. The success of each of these businesses
and the achievement of certain key assumptions developed by management and used
in the Discounted Cash Flow Model are contingent upon various factors including,
but not limited to, (i) achieving growth from existing customers, (ii) sales to
new customers, (iii) increased market penetration and (iv) accurately timing the
capital investments related to expansions.

Our Global Data Center Business footprint spanned nine markets in the United
States: Denver, Colorado; Kansas City, Missouri; Boston, Massachusetts; Boyers,
Pennsylvania; Manassas, Virginia; Edison, New Jersey; Columbus, Ohio; and
Phoenix and Scottsdale, Arizona and four international markets: Amsterdam,
London, and Singapore, with land held for development in Frankfurt. We provide
mission-critical data centers that are designed and operated to protect and
ensure the continued operation of IT infrastructure for our customers. Data
centers are highly specialized and secure assets that serve as centralized
repositories of server, storage and network equipment. They are capital
intensive and designed to provide the space, power, cooling and network
connectivity necessary to efficiently operate mission-critical IT equipment. The
demand for data center infrastructure is being driven by many factors, but most
importantly by significant growth in data as well as an increased demand for
outsourcing. In order to attract and retain customers, as well as sustain growth
in our existing and new markets, we must have the capability to tailor our
facilities and invest capital to meet the customers' needs. Our estimate of fair
value reflects the expected growth in each of our data center markets along with
the corresponding capital investments required to meet demand. The business is
primarily comprised of acquisitions completed in 2018 and late 2017; therefore,
we would expect that the fair value of this reporting unit will closely
approximate its carrying value.

Our Fine Arts business operates in a growing, but fragmented, industry marked by
increasing international interest and changes in purchasing habits by collectors
and museums. We believe the increase in contemporary art as a focus for
collectors will result in increasing storage needs, while the increase in
auction "turnover" (the rate at which catalogs, collections and individual
pieces are made available for auction) has heightened the need for
transportation, shipping, and related services. Taken together, we believe these
factors will result in continued growth of the fine art storage industry. The
fine arts storage market continues to change and expand, and the assumptions
used when determining the fair value of the Fine Arts reporting unit reflect
this growth potential and the capital needs required to respond to the expansion
opportunities. The Fine Arts reporting unit is primarily composed of businesses
we acquired in 2018 and 2015; therefore, we would expect the fair value of this
reporting unit to closely approximate its carrying value.


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Key factors that could reasonably be expected to have a negative impact on the
estimated fair value of these reporting units and potentially result in
impairment charges include, but are not limited to: (i) a deterioration in
general economic conditions, (ii) significant adverse changes in regulatory
factors or in the business climate, and (iii) adverse actions or assessment by
regulators, all of which could result in adverse changes to the key assumptions
used in valuing the reporting units. The inability to meet the assumptions used
in the Discounted Cash Flow Model and Market Approach for each of the reporting
units, or future adverse market conditions not currently known, could lead to a
fair value that is less than the carrying value in any one of our reporting
units.

As described more above, during the fourth quarter of 2019, as a result of the
realignment of our global managerial structure and changes to our internal
financial reporting associated with Project Summit, we reassessed the
composition of our reportable operating segments (see Note 9 to Notes to
Consolidated Financial Statements included in this Annual Report for a
description of our reportable operating segments) and reporting units.
Subsequent to the implementation of the managerial structure changes and changes
to our internal financial reporting associated with Project Summit, we now have
the following reportable operating segments: (i) Global RIM Business (which
consists of the former North American Records and Information Management
Business (excluding our technology escrow services business, which is now
included as a component of our Corporate and Other Business segment), North
American Data Management Business, Western European Business and Other
International Business); (ii) Global Data Center Business; and (iii) Corporate
and Other Business (which includes our Adjacent Businesses and our technology
escrow services business). See Note 9 for disclosure of our reportable operating
segments.

As a result of the realignment of our global managerial structure and changes to
our internal financial reporting associated with Project Summit, we note the
following changes to our reporting units: (1) our former North American Records
and Information Management (excluding our technology escrow services business)
and North American Data Management reporting units are now being managed as our
"North America RIM" reporting unit; (2) our former Western Europe and NEE and
MEI reporting units (excluding India) and our business in Africa (which was
which was previously managed as a component of our former ANZ SA reporting unit)
is now being managed together as our "Europe RIM" reporting unit; (3) our
business in India (which was previously managed as a component of our former NEE
and MEI reporting unit) is now being managed in conjunction with our businesses
in Asia as our "Asia RIM" reporting unit; (4) our former ANZ SA reporting unit
will no longer include South Africa and will be referred to as our "Australia
and New Zealand RIM" (or "ANZ RIM") reporting unit; and (5) our technology
escrow services business is now being managed separately as our "Technology
Escrow Services" reporting unit. There were no changes to our Global Data
Center, Fine Arts, Entertainment Services and Latin America RIM reporting units
as a result of the realignment of our global managerial structure and changes to
our internal financial reporting associated with Project Summit.

We concluded that the goodwill associated with our newly formed (1) North
America RIM, (2) Europe RIM, (3) ANZ RIM, (4) Asia RIM and (5) Technology Escrow
Services reporting units were not impaired following the changes in reporting
units described above.

At December 31, 2019, no factors were identified that would alter the
conclusions of our October 1, 2019 goodwill impairment analysis. In making this
assessment, we considered a number of factors including operating results,
business plans, anticipated future cash flows, transactions and marketplace
data. There are inherent uncertainties related to these factors and our judgment
in applying them to the analysis of goodwill impairment.

Reporting unit valuations have generally been determined using a combined
approach based on the Discounted Cash Flow Model and Market Approach. The
Discounted Cash Flow Model incorporates significant assumptions including future
revenue growth rates, operating margins, discount rates and capital
expenditures. The Market Approach requires us to make assumptions related to
Adjusted EBITDA multiples. Changes in economic and operating conditions
impacting these assumptions or changes in multiples could result in goodwill
impairments in future periods. In conjunction with our annual goodwill
impairment reviews, we reconcile the sum of the valuations of all of our
reporting units to our market capitalization as of such dates.


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Although we believe we have sufficient historical and projected information
available to us to test for goodwill impairment, it is possible that actual
results could differ from the estimates used in our impairment tests. Of the key
assumptions that impact the goodwill impairment test, the expected future cash
flows and discount rate are among the most sensitive and are considered to be
critical assumptions, as changes to these estimates could have an effect on the
estimated fair value of each of our reporting units. We have assessed the
sensitivity of these assumptions on each of our reporting units as of October 1,
2019. With respect to the North American Records and Information Management,
North American Data Management, Entertainment Services, Western Europe, NEE and
MEI, Latin America, ANZ SA and Asia reporting units as of October 1, 2019, we
noted that, based on the estimated fair value of these reporting units
determined as of October 1, 2019, (i) a hypothetical decrease of 10% in the
expected annual future cash flows of these reporting units, with all other
assumptions unchanged, would have decreased the estimated fair value of these
reporting units as of October 1, 2019 by approximately 9.7% to 10.5% but would
not, however, have resulted in the carrying value of any of these reporting
units with goodwill exceeding their estimated fair value; and (ii) a
hypothetical increase of 100 basis points in the discount rate, with all other
assumptions unchanged, would have decreased the estimated fair value of these
reporting units as of October 1, 2019 by a range of approximately 4.4% to 8.7%
but would not, however, have resulted in the carrying value of any of these
reporting units with goodwill exceeding their estimated fair value. With respect
to the Global Data Center and Fine Arts reporting units, we noted that, as of
October 1, 2019, the estimated fair value of these reporting units exceeds their
carrying value by less than 20%. Accordingly, any significant negative change in
either the expected annual future cash flows of these reporting units or the
discount rate may result in the carrying value of these reporting units
exceeding their estimated fair value.

Income Taxes

As a REIT, we are generally permitted to deduct from our federal taxable income
the dividends we pay to our stockholders. The income represented by such
dividends is not subject to federal taxation at the entity level but is taxed,
if at all, at the stockholder level. The income of our domestic TRSs, which hold
our domestic operations that may not be REIT-compliant as currently operated and
structured, is subject, as applicable, to federal and state corporate income
tax. In addition, we and our subsidiaries continue to be subject to foreign
income taxes in other jurisdictions in which we have business operations or a
taxable presence, regardless of whether assets are held or operations are
conducted through subsidiaries disregarded for federal income tax purposes or
TRSs. We will also be subject to a separate corporate income tax on any gains
recognized on the sale or disposition of any asset previously owned by a C
corporation during a five-year period after the date we first owned the asset as
a REIT asset that are attributable to "built-in gains" with respect to that
asset on that date. We will also be subject to a built-in gains tax on our
depreciation recapture recognized into income as a result of accounting method
changes in connection with our acquisition activities. If we fail to remain
qualified for taxation as a REIT, we will be subject to federal income tax at
regular corporate income tax rates. Even if we remain qualified for taxation as
a REIT, we may be subject to some federal, state, local and foreign taxes on our
income and property in addition to taxes owed with respect to our TRS
operations. In particular, while state income tax regimes often parallel the
federal income tax regime for REITs, many states do not completely follow
federal rules and some do not follow them at all.

Accounting for income taxes requires the recognition of deferred tax assets and
liabilities for the expected future tax consequences of temporary differences
between the tax and financial reporting bases of assets and liabilities and for
loss and credit carryforwards. We measure deferred tax assets and liabilities
using enacted tax rates expected to be applied to taxable income in the years in
which those temporary differences and carryforwards are expected to be recovered
or settled. The effect on deferred tax assets and liabilities as a result of a
change in tax rates is recognized in income in the period that the change is
enacted. Valuation allowances are provided when recovery of deferred tax assets
does not meet the more likely than not standard as defined in GAAP. Valuation
allowances would be reversed as a reduction to the provision for income taxes if
related deferred tax assets are deemed realizable based on changes in facts and
circumstances relevant to the recoverability of the asset.

At December 31, 2019, we have federal net operating loss carryforwards of $152.7
million available to reduce future federal taxable income, the majority of which
expire from 2024 through 2037. Of the $152.7 million, we expect to utilize $39.2
million and realize a federal tax benefit of $8.2 million. We can carry forward
these net operating losses to the extent we do not utilize them in any given
available year. We have state net operating loss carryforwards, which expire
from 2020 through 2039, of which an insignificant state tax benefit is expected
to be realized. We have assets for foreign net operating losses of $90.8
million, with various expiration dates (and in some cases no expiration date),
subject to a valuation allowance of approximately 64%. If actual results differ
unfavorably from certain of our estimates used, we may not be able to realize
all or part of our net deferred income tax assets and additional valuation
allowances may be required. Although we believe our estimates are reasonable, no
assurance can be given that our estimates reflected in the tax provisions and
accruals will equal our actual results. These differences could have a material
impact on our income tax provision and operating results in the period in which
such determination is made.


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The evaluation of an uncertain tax position is a two-step process. The first
step is a recognition process whereby we determine whether it is more likely
than not that a tax position will be sustained upon examination, including
resolution of any related appeals or litigation processes, based on the
technical merits of the position. The second step is a measurement process
whereby a tax position that meets the more likely than not recognition threshold
is calculated to determine the amount of benefit to recognize in the financial
statements. The tax position is measured as the largest amount of benefit that
is greater than 50% likely of being realized upon ultimate settlement.

We are subject to income taxes in the United States and numerous foreign
jurisdictions. We are subject to examination by various tax authorities in
jurisdictions in which we have business operations or a taxable presence. We
regularly assess the likelihood of additional assessments by tax authorities and
provide for these matters as appropriate. As of December 31, 2019 and 2018, we
had approximately $35.1 million and $35.3 million, respectively, of reserves
related to uncertain tax positions. The reversal of these reserves will be
recorded as a reduction of our income tax provision if sustained. Although we
believe our tax estimates are appropriate, the final determination of tax audits
and any related litigation could result in changes in our estimates.

Following our conversion to a REIT in 2014, we concluded that it was not our
intent to reinvest our current and future undistributed earnings of our foreign
subsidiaries indefinitely outside the United States. As of December 31, 2016, we
concluded that it is our intent to indefinitely reinvest our current and future
undistributed earnings of certain of our unconverted foreign TRSs outside the
United States. We no longer provide incremental foreign withholding taxes on the
retained book earnings of these unconverted foreign TRSs, which was
approximately $279.7 million as of December 31, 2019. As a REIT, future
repatriation of incremental undistributed earnings of our foreign subsidiaries
will not be subject to federal or state income tax, with the exception of
foreign withholding taxes in limited instances; however, such future
repatriations will require distribution in accordance with REIT distribution
rules, and any such distribution may then be taxable, as appropriate, at the
stockholder level. We continue, however, to provide for incremental foreign
withholding taxes on net book over outside basis differences related to the
earnings of our foreign QRSs and certain other foreign TRSs (excluding
unconverted foreign TRSs).

Tax Reform

On December 22, 2017, legislation commonly referred to as the Tax Cuts and Jobs
Act (the "Tax Reform Legislation") was enacted into law in the United States.
The Tax Reform Legislation amended the Code to reduce tax rates and modify
policies, credits and deductions for businesses and individuals. The following
summarizes certain components of the Tax Reform Legislation and the impact such
components of the Tax Reform Legislation. One of the primary components of the
Tax Reform Legislation was a reduction in the United States corporate federal
income tax rate from 35% to 21% for taxable years beginning after December 31,
2017.

a. Deemed Repatriation Transition Tax

The Tax Reform Legislation imposed a transition tax (the "Deemed Repatriation
Transition Tax") on a mandatory deemed repatriation of post-1986 undistributed
foreign earnings and profits not previously subject to United States tax as of
November 2, 2017 or December 31, 2017, whichever was greater (the "Undistributed
E&P"), as of the last taxable year beginning before January 1, 2018. The Deemed
Repatriation Transition Tax varied depending on whether the Undistributed E&P
was held in liquid (as defined in the Tax Reform Legislation) or non-liquid
assets. A participation deduction against the deemed repatriation resulted in a
Deemed Repatriation Transition Tax on Undistributed E&P of 15.5% if held in cash
and liquid assets and 8.0% if held in non-liquid assets. The Deemed Repatriation
Transition Tax applied regardless of whether or not an entity had cash in its
foreign subsidiaries and regardless of whether the entity actually repatriated
the Undistributed E&P back to the United States.

We have completed our analysis and determined that the amount of Undistributed
E&P deemed repatriated under the Tax Reform Legislation in our taxable year
ending December 31, 2017 was $160.0 million. We opted to include the full amount
of Undistributed E&P in our 2017 taxable income, rather than spread it over
eight years (as permitted by the Tax Reform Legislation). After applying the
participation deduction, included in our REIT taxable income for 2017 was
approximately $70.9 million related to the deemed repatriation of Undistributed
E&P.


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b. Global Intangible Low-Taxed Income

For taxable years beginning after December 31, 2017, the Tax Reform Legislation
introduced new provisions intended to prevent the erosion of the United States
federal income tax base through the taxation of certain global intangible
low-taxed income ("GILTI"). The GILTI provisions created a new requirement that
certain income earned by controlled foreign corporations ("CFCs") must be
included currently in the gross income of the CFC's United States tax resident
shareholder. Generally, GILTI is the excess of the United States shareholder's
pro rata portion of the income of its foreign subsidiaries over the net deemed
tangible income return of such subsidiaries.

The GILTI provisions also provide for certain deductions against the inclusion
of GILTI in taxable income; however, REITs are not eligible for such deductions.
Therefore, 100% of our GILTI is included in our taxable income and will increase
the required minimum distribution to our stockholders. There was no GILTI
included in our taxable income for the year ended December 31, 2019 and the
amount included in our REIT taxable income for the year ended December 31, 2018
was approximately $41.9 million. We have adopted an accounting policy such that
we will recognize no deferred taxes related to basis differences resulting from
GILTI.

The Internal Revenue Service issued guidance clarifying that GILTI included in a
REIT's taxable income is qualifying income for purposes of the 95% REIT gross
income test that we are required to satisfy. We do not expect the GILTI
provision will impact our provision for income taxes. However, the GILTI
provision may impact the amount and characterization of dividends that we expect
to pay in future taxable years.

c. Interest Deduction Limitation

The Tax Reform Legislation also limits, for certain entities, the deduction for
net interest expense to the sum of business interest income plus 30% of adjusted
taxable income (the "Interest Deduction Limitation"). Adjusted taxable income is
defined in the Tax Reform Legislation similar to earnings before interest,
taxes, depreciation and amortization for taxable years beginning after December
31, 2017 and before January 1, 2022, and is defined similar to earnings before
interest and taxes for taxable years beginning after December 31, 2021.

The Interest Deduction Limitation does not apply to taxpayers that qualify, and
make an election, to be treated as an "electing real property trade or
business". As a REIT, IMI, including all of our QRSs, made an election to be
treated as an "electing real property trade or business" beginning in our
taxable year ended December 31, 2018. As such, the interest deduction limitation
does not apply to IMI or our QRSs; however, IMI will be required to utilize the
alternative depreciation system for its real property. This election does not
have a material impact on our consolidated financial statements. We do not
generally believe that our TRSs are eligible for treatment as "electing real
property trades or businesses".

Recent Accounting Pronouncements

See Note 2.w. to Notes to Consolidated Financial Statements included in this
Annual Report for a description of recently issued accounting pronouncements,
including those recently adopted.

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Results of Operations
Comparison of Year Ended December 31, 2019 to Year Ended December 31, 2018 and
Comparison of Year Ended December 31, 2018 to Year Ended December 31, 2017 (in
thousands):
                                        Year Ended December 31,         Dollar      Percentage
                                         2019            2018           Change        Change
Revenues                             $ 4,262,584     $ 4,225,761     $   36,823          0.9  %
Operating Expenses                     3,481,246       3,417,494         63,752          1.9  %
Operating Income                         781,338         808,267        (26,929 )       (3.3 )%
Other Expenses, Net                      513,127         440,709         72,418         16.4  %
Income from Continuing Operations        268,211         367,558        (99,347 )      (27.0 )%
Income (Loss) from Discontinued
Operations, Net of Tax                       104         (12,427 )       12,531       (100.8 )%
Net Income                               268,315         355,131        (86,816 )      (24.4 )%
Net Income Attributable to
Noncontrolling Interests                     938           1,198           (260 )      (21.7 )%
Net Income Attributable to Iron
Mountain Incorporated                $   267,377     $   353,933     $  (86,556 )      (24.5 )%
Adjusted EBITDA(1)                   $ 1,437,605     $ 1,424,824     $   12,781          0.9  %
Adjusted EBITDA Margin(1)                   33.7 %          33.7 %


                                        Year Ended December 31,         Dollar      Percentage
                                         2018            2017           Change        Change
Revenues                             $ 4,225,761     $ 3,845,578     $  380,183          9.9  %
Operating Expenses                     3,417,494       3,211,527        205,967          6.4  %
Operating Income                         808,267         634,051        174,216         27.5  %
Other Expenses, Net                      440,709         456,036        (15,327 )       (3.4 )%
Income from Continuing Operations        367,558         178,015        189,543        106.5  %
(Loss) Income from Discontinued
Operations, Net of Tax                   (12,427 )        (6,291 )       (6,136 )       97.5  %
Net Income                               355,131         171,724        183,407        106.8  %
Net Income Attributable to
Noncontrolling Interests                   1,198           1,611           (413 )      (25.6 )%
Net Income Attributable to Iron
Mountain Incorporated                $   353,933     $   170,113     $  183,820        108.1  %
Adjusted EBITDA(1)                   $ 1,424,824     $ 1,243,573     $  181,251         14.6  %
Adjusted EBITDA Margin(1)                   33.7 %          32.3 %

_______________________________________________________________________________

(1) See "Non-GAAP Measures-Adjusted EBITDA" in this Annual Report for the

definitions of Adjusted EBITDA and Adjusted EBITDA Margin, reconciliation

of Adjusted EBITDA to Income (Loss) from Continuing Operations and a

discussion of why we believe these non-GAAP measures provide relevant and

       useful information to our current and potential investors.



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REVENUES
                                                                         Percentage Change
                       Year Ended December 31,         Dollar                         Constant        Organic
                        2019             2018          Change         Actual         Currency(1)     Growth(2)
Storage Rental     $   2,681,087     $ 2,622,455     $  58,632          2.2  %            4.3 %          2.5  %
Service                1,581,497       1,603,306       (21,809 )       (1.4 )%            0.9 %         (1.0 )%
Total Revenues     $   4,262,584     $ 4,225,761     $  36,823          0.9  %            3.0 %          1.1  %


                                                                         Percentage Change
                       Year Ended December 31,         Dollar                        Constant        Organic
                        2018             2017          Change        Actual        Currency(1)      Growth(2)
Storage Rental     $   2,622,455     $ 2,377,557     $ 244,898         10.3 %           10.6 %          2.4 %
Service                1,603,306       1,468,021       135,285          9.2 %            9.7 %          5.4 %
Total Revenues     $   4,225,761     $ 3,845,578     $ 380,183          9.9 %           10.2 %          3.6 %

_______________________________________________________________________________

(1)    Constant currency growth rates are calculated by translating the 2018
       results at the 2019 average exchange rates and the 2017 results at the
       2018 average exchange rates.

(2) Our organic revenue growth rate, which is a non-GAAP measure, represents

the year-over-year growth rate of our revenues excluding the impact of

business acquisitions, divestitures, foreign currency exchange rate

fluctuations and the impact of the adoption of ASU 2014-09, but including

the impact of acquisitions of customer relationships.

Storage Rental Revenues

In the year ended December 31, 2019, the increase in reported consolidated
storage rental revenue was driven by the favorable impact of
acquisitions/divestitures and consolidated organic storage rental revenue
growth, partially offset by unfavorable fluctuations in foreign currency
exchange rates. The net impact of acquisitions/divestitures contributed 1.8% to
the reported storage rental revenue growth rates for the year ended December 31,
2019 compared to the prior year period, primarily driven by acquisitions in our
Global Data Center Business segment. Organic storage rental revenue growth of
2.5% in the year ended December 31, 2019 compared to the prior year period was
driven by organic storage rental revenue growth of 2.2% in our Global RIM
Business segment, mainly driven by revenue management. Excluding the impact of
acquisitions/divestitures, our Global RIM Business segment net volumes as of
December 31, 2019 were relatively steady compared to the ending volume as of
December 31, 2018. Including the impact of acquisitions/divestitures, our Global
RIM Business segment net volumes as of December 31, 2019 increased by 0.4% over
the ending volume at December 31, 2018. Organic storage rental revenue growth in
our Global Data Center Business segment was 5.3% compared to the prior year
period, primarily related to a $5.4 million lease modification fee that
benefited organic storage rental revenue growth for the segment by 2.5%. Foreign
currency exchange rate fluctuations decreased our reported storage rental
revenue growth rate for the year ended December 31, 2019 by 2.1%, compared to
the prior year period.

Service Revenues

In the year ended December 31, 2019, the decrease in reported consolidated
service revenues was driven by unfavorable fluctuations in foreign currency
exchange rates and negative organic service revenue growth, partially offset by
the favorable impact of acquisitions/divestitures. Foreign currency exchange
rate fluctuations decreased our reported service revenue growth rate in the year
ended December 31, 2019 by 2.3%, compared to the prior year period. In the year
ended December 31, 2019, organic service revenue growth was negative 1.0%
compared to the prior year period, primarily driven by continued declines in
recycled paper prices, lower destructions and reduced retrieval/re-file and
related transportation activity, partially offset by growth in our secure
shredding revenue and increased project activity in our Global RIM Business
segment. The net impact of acquisitions/divestitures contributed 1.9% to the
reported service revenue growth rates in the year ended December 31, 2019,
compared to the prior year period.



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Total Revenues

For the reasons stated above, our reported consolidated revenues increased $36.8
million, or 0.9%, to $4,262.6 million for the year ended December 31, 2019 from
$4,225.8 million for the year ended December 31, 2018. The net impact of
acquisitions/divestitures contributed 1.9% to the reported consolidated revenue
growth rate for the year ended December 31, 2019 compared to the prior year
period. Consolidated organic revenue growth was 1.1% in the year ended
December 31, 2019 compared to the prior year period. Foreign currency exchange
rate fluctuations decreased our reported consolidated revenues by 2.1% in the
year ended December 31, 2019 compared to the prior year period.

Organic Growth-Eight-Quarter Trend

                                   2018                                           2019
                 First      Second      Third      Fourth      First      Second       Third      Fourth
                Quarter     Quarter    Quarter     Quarter    Quarter     Quarter     Quarter     Quarter
Storage Rental
Revenue            3.7 %       1.9 %      2.3 %       1.9 %      2.0 %      2.4  %      3.0  %      2.5  %
Service
Revenue            1.4 %       7.6 %      7.1 %       6.1 %      1.8 %    

(2.0 )% (3.0 )% (0.7 )% Total Revenue 2.8 % 4.1 % 4.1 % 3.5 % 1.9 % 0.7 % 0.7 % 1.3 %

We expect our consolidated organic storage rental revenue growth rate for 2020
to be approximately 1.0% to 3.0% and our consolidated organic total revenue
growth rate to be flat to approximately 2.0%. During the past eight quarters,
our organic storage rental revenue growth rate has ranged between 1.9% and 3.7%.
Consolidated organic storage rental revenue growth and consolidated total
organic revenue growth were benefited by (i) 0.3% and 0.2%, respectively, for
the second quarter of 2019 related to a $1.7 million customer lease modification
fee in our Global Data Center Business segment, (ii) 0.3% and 0.2%,
respectively, for the third quarter of 2019 related to a $1.7 million customer
lease modification fee in our Global Data Center Business segment and (iii) 0.3%
and 0.2%, respectively, for the fourth quarter of 2019 related to a $2.0 million
customer lease modification fee in our Global Data Center Business segment. Our
organic storage rental revenue growth rates have increased over the past two
fiscal years, as organic storage rental revenue growth for full year 2018 and
2019 was 2.4% and 2.5%, respectively. At various points in the economic cycle,
organic storage rental revenue growth may be influenced by changes in pricing
and volume. In 2018 and 2019, we experienced relatively steady net volume in our
Global RIM Business segment, with organic storage rental revenue growth coming
primarily from revenue management. We expect organic storage rental revenue
growth to benefit from revenue management and volume to remain relatively
consistent in the near term.

The organic growth rate for service revenue is inherently more volatile than the
organic growth rate for storage rental revenues due to the more discretionary
nature of certain services we offer, such as large special projects, and, as a
commodity, the volatility of pricing for recycled paper. These revenues, which
are often event-driven and impacted to a greater extent by economic downturns as
customers defer or cancel the purchase of certain services as a way to reduce
their short-term costs, may be difficult to replicate in future periods. The
organic growth rate for total service revenues over the past eight quarters
reflects reduced retrieval/re-file activity and a related decrease in
transportation revenues within our Global RIM Business segment. The increases in
organic service revenue growth rates of 7.6%, 7.1% and 6.1% in the second, third
and fourth quarters of 2018 reflect a strong contribution from our secure
shredding business, which benefited from higher recycled paper prices, higher
destruction activity and acquisitions of customer relationships. Organic service
revenue growth declined to 1.8%, negative 2.0%, negative 3.0% and negative 0.7%
for the first, second, third and fourth quarters of 2019, respectively,
reflecting declining recycled paper prices and moderation of destruction
activity compared to previous quarters. We expect these trends to continue into
2020.


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OPERATING EXPENSES

Cost of Sales

Consolidated cost of sales (excluding depreciation and amortization) consists of the following expenses (in thousands):

                                                                                             % of
                                                                    Percentage           Consolidated       Percentage
                   Year Ended December 31,                            Change               Revenues           Change
                                                   Dollar                  Constant                        (Favorable)/
                    2019             2018          Change       Actual     Currency     2019      2018      Unfavorable
Labor          $     814,459     $   818,729     $  (4,270 )     (0.5 )%      2.2  %    19.1 %    19.4 %       (0.3 )%
Facilities           697,330         651,114        46,216        7.1  %      9.5  %    16.4 %    15.4 %        1.0  %
Transportation       162,905         158,528         4,377        2.8  %      5.1  %     3.8 %     3.8 %          -  %
Product Cost
of Sales and
Other                158,621         165,583        (6,962 )     (4.2 )%     (1.4 )%     3.7 %     3.9 %       (0.2 )%
Total Cost of
Sales          $   1,833,315     $ 1,793,954     $  39,361        2.2  %      4.8  %    43.0 %    42.5 %        0.5  %


                                                                                            % of
                                                                                        Consolidated
                                                                    Percentage            Revenues         Percentage
                   Year Ended December 31,                            Change                                 Change
                                                   Dollar                 Constant                        (Favorable)/
                    2018             2017          Change       Actual    Currency     2018      2017      Unfavorable
Labor          $     818,729     $   786,314     $  32,415        4.1 %       4.7 %    19.4 %    20.4 %       (1.0 )%
Facilities           651,114         581,112        70,002       12.0 %      12.5 %    15.4 %    15.1 %        0.3  %
Transportation       158,528         142,184        16,344       11.5 %      12.2 %     3.8 %     3.7 %        0.1  %
Product Cost
of Sales and
Other                165,583         155,215        10,368        6.7 %       8.0 %     3.9 %     4.0 %       (0.1 )%
Total Cost of
Sales          $   1,793,954     $ 1,664,825     $ 129,129        7.8 %       8.4 %    42.5 %    43.3 %       (0.8 )%



Labor

Labor expenses decreased to 19.1% of consolidated revenues in the year ended
December 31, 2019 compared to 19.4% in the year ended December 31, 2018. The
decrease in labor expenses as a percentage of consolidated revenues was
primarily driven by improvements in our Global RIM Business segment, partially
attributable to ongoing cost management actions. On a constant dollar basis,
labor expenses for the year ended December 31, 2019 increased by $17.4 million,
or 2.2%, compared to the prior year period, primarily driven by recent
acquisitions in our Adjacent Businesses operating segment within our Corporate
and Other Business segment, as well as increased labor costs related to the
growth of our shredding operations within our Global RIM Business segment.

Facilities

Facilities expenses increased to 16.4% of consolidated revenues in the year
ended December 31, 2019 compared to 15.4% in the year ended December 31, 2018.
The 100 basis point increase in facilities expenses as a percentage of
consolidated revenues was primarily driven by acquisitions in our Global Data
Center Business segment and our Adjacent Businesses operating segment within our
Corporate and Other Business segment. On a constant dollar basis, facilities
expenses for the year ended December 31, 2019 increased by $60.3 million, or
9.5%, compared to the prior year period, driven by higher rent expense,
insurance costs, utilities and building maintenance, in part driven by the
acquisitions mentioned above.

Transportation

Transportation expenses remained constant at 3.8% of consolidated revenues for
the year ended December 31, 2019 compared to 3.8% for the year ended
December 31, 2018. This was primarily driven by increases in third party carrier
expenses, in part due to recent acquisitions in our Adjacent Businesses
operating segment within our Corporate and Other Business segment, offset by a
decrease in transportation costs within our Global RIM Business segment. On a
constant dollar basis, transportation expenses for the year ended December 31,
2019 increased by $7.9 million, or 5.1%, compared to the prior year period,
primarily driven by increases in third party carrier expenses, in part due to
recent acquisitions in our Adjacent Businesses operating segment within our
Corporate and Other Business segment.

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Product Cost of Sales and Other

Product cost of sales and other, which includes cartons, media and other
service, storage and supply costs and is highly correlated to service revenue
streams, particularly project revenues, were 3.7% of consolidated revenues for
the year ended December 31, 2019 compared to 3.9% in the year ended December 31,
2018. On a constant dollar basis, product cost of sales and other decreased by
$2.2 million, or 1.4%, compared to the prior year period, primarily driven by
lower special project costs.

Selling, General and Administrative Expenses

Selling, general and administrative expenses consists of the following expenses
(in thousands):

                                                                                                 % of
                                                                        Percentage           Consolidated      Percentage
                      Year Ended December 31,                             Change               Revenues          Change
                                                       Dollar                  Constant                       (Favorable)/
                       2019              2018          Change       Actual     Currency     2019      2018     Unfavorable
General and
Administrative   $    563,965        $   577,451     $ (13,486 )     (2.3 )%     (0.5 )%    13.2 %   13.7 %       (0.5 )%
Sales,
Marketing and
Account
Management            245,704            257,306       (11,602 )     (4.5 )%     (2.8 )%     5.8 %    6.1 %       (0.3 )%
Information
Technology            162,606            153,601         9,005        5.9  %      7.1  %     3.8 %    3.6 %        0.2  %
Bad Debt Expense       19,389             18,625           764        4.1  %      6.4  %     0.5 %    0.4 %        0.1  %
Total Selling,
General and
Administrative
Expenses         $    991,664        $ 1,006,983     $ (15,319 )     (1.5 )%      0.2  %    23.3 %   23.8 %       (0.5 )%


                                                                                                     % of
                                                                             Percentage          Consolidated      Percentage
                     Year Ended December 31,                                   Change              Revenues          Change
                                                                                   Constant                       (Favorable)/
                       2018              2017         Dollar Change      Actual    Currency     2018      2017     Unfavorable
General and
Administrative  $      577,451        $ 537,127     $        40,324        7.5 %       7.9 %    13.7 %   14.0 %       (0.3 )%
Sales,
Marketing and
Account
Management             257,306          253,117               4,189        1.7 %       1.6 %     6.1 %    6.6 %       (0.5 )%
Information
Technology             153,601          132,110              21,491       16.3 %      16.4 %     3.6 %    3.4 %        0.2  %
Bad Debt
Expense                 18,625           14,826               3,799       25.6 %      29.4 %     0.4 %    0.4 %          -  %
Total Selling,
General and
Administrative
Expenses        $    1,006,983        $ 937,180     $        69,803        7.4 %       7.7 %    23.8 %   24.4 %       (0.6 )%



General and Administrative

General and administrative expenses decreased to 13.2% of consolidated revenues
for the year ended December 31, 2019 compared to 13.7% for the year ended
December 31, 2018. General and administrative expenses for the year ended
December 31, 2018 includes $11.0 million of indirect expenses associated with a
value-added tax matter in the Netherlands (the "Netherlands VAT Matter"), as
described in Note 2.y. to Notes to Consolidated Financial Statements included in
this Annual Report. On a constant dollar basis, excluding the impact of the
Netherlands VAT Matter, general and administrative expenses for the year ended
December 31, 2019 increased by $8.5 million, or 1.5%, compared to the prior year
period. The increase in general and administrative expenses as a percentage of
consolidated revenues was driven primarily by higher compensation expense and
professional fees within our Corporate and Other Business segment, primarily
associated with our global operations support team that is tasked with driving
operational improvements and continued investment in innovation and product
development, as well as acquisitions in our Adjacent Businesses operating
segment within our Corporate and Other Business segment. The increase in
compensation expense is primarily the result of merit-based increases as well as
increased headcount, partially offset by a reduction in variable compensation
expense.


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Sales, Marketing & Account Management

Sales, marketing and account management expenses decreased to 5.8% of
consolidated revenues for the year ended December 31, 2019 compared to 6.1% for
the year ended December 31, 2018. The decrease in sales, marketing and account
management expenses as a percentage of consolidated revenues was driven by a
decrease in compensation expense, primarily due to lower commissions expense, as
well as a decrease in marketing costs. On a constant dollar basis, sales,
marketing and account management expenses for the year ended December 31, 2019
decreased by $7.1 million, or 2.8%, compared to the prior year period, primarily
driven by lower marketing costs.

Information Technology

IT expenses increased to 3.8% of consolidated revenues for the year ended
December 31, 2019 compared to 3.6% for the year ended December 31, 2018. IT
expenses as a percentage of consolidated revenues reflect an increase in
professional fees and compensation expense, primarily related to information
security costs and investments in innovation and product development. On a
constant dollar basis, IT expenses for the year ended December 31, 2019
increased by $10.8 million, or 7.1%, compared to the prior year period,
primarily driven by an increase in professional fees and compensation expense,
primarily related to information security costs and investments in innovation
and product development.

Bad Debt Expense

We maintain an allowance for doubtful accounts that is calculated based on our
past loss experience, current and prior trends in our aged receivables, current
economic conditions, and specific circumstances of individual receivable
balances. We continue to monitor our customers' payment activity and make
adjustments based on their financial condition and in light of historical and
expected trends. Bad debt expense for the year ended December 31, 2019 increased
by $1.2 million on a constant dollar basis compared to the year ended December
31, 2018, primarily driven by higher bad debt expense associated with our Global
RIM Business segment.

Depreciation and Amortization

Our depreciation and amortization charges result primarily from depreciation
related to storage systems, which include racking structures, buildings,
building and leasehold improvements and computer systems hardware and software.
Amortization relates primarily to customer relationship intangible assets,
contract fulfillment costs and data center lease-based intangible assets. Both
depreciation and amortization are impacted by the timing of acquisitions.

Depreciation expense increased $3.6 million, or 0.8%, on a reported dollar basis
for the year ended December 31, 2019 compared to the year ended December 31,
2018. See Note 2.f. to Notes to Consolidated Financial Statements included in
this Annual Report for additional information regarding the useful lives over
which our property, plant and equipment is depreciated.

Amortization expense increased $15.1 million, or 8.1%, on a reported dollar basis for the year ended December 31, 2019 compared to the year ended December 31, 2018.

Significant Acquisition Costs

Significant Acquisition Costs for the years ended December 31, 2019, 2018 and
2017 were approximately $13.3 million, $50.7 million and $84.9 million,
respectively, and primarily consisted of employee severance costs, facility
integration costs and advisory and professional fees associated with the Recall
Transaction.

Restructuring Charges

Restructuring Charges were approximately $48.6 million for the year ended December 31, 2019, and primarily consisted of employee severance costs and professional fees associated with Project Summit.

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Gain on Disposal/Write-Down of Property, Plant and Equipment, Net

Consolidated gain on disposal/write-down of property, plant and equipment, net,
for the year ended December 31, 2019 was approximately $63.8 million. The gain
consisted primarily of gains associated with (i) sale and sale-leaseback
transactions involving the sales of facilities in the United States of
approximately $67.8 million and (ii) the sale of certain land and buildings in
the United Kingdom of approximately $36.0 million. These gains were partially
offset by losses primarily associated with (i) the impairment charge on the
assets associated with the select offerings within our Iron Cloud portfolio (as
described below) and (ii) the write-down of certain property, plant and
equipment in the United States of approximately $15.7 million.

During the second quarter of 2019, we began exploring strategic options
regarding how to maintain and support the infrastructure of select offerings
within our Iron Mountain Iron Cloud ("Iron Cloud") portfolio. As a result,
during the second quarter of 2019, we performed a long-lived asset impairment
analysis on the assets associated with these select offerings and concluded that
the associated carrying value of the long-lived assets (which consisted entirely
of property, plant and equipment) was not recoverable based upon the underlying
cash flows associated with these select offerings. On September 30, 2019, we
entered into an agreement (the "Iron Cloud Outsourcing Agreement") with a
wholesale provider of data infrastructure and data management services to
outsource the operation, infrastructure management and maintenance and delivery
of select offerings within our Iron Cloud portfolio. In conjunction with the
entry into the Iron Cloud Outsourcing Agreement, we also sold certain IT
infrastructure assets and the rights to certain hardware and software
maintenance contracts used to deliver these Iron Cloud offerings. As a result of
our long-lived asset impairment analysis and sale of certain IT infrastructure
assets and rights to certain hardware and software maintenance contracts, we
recognized an impairment charge and a loss on sale of the assets totaling
approximately $25.0 million during the year ended December 31, 2019.

Consolidated gain on disposal/write-down of property, plant and equipment, net
for the year ended December 31, 2018 was $73.6 million. The gain consisted
primarily of (i) the gain on sale of real estate for the sale of buildings in
the United Kingdom of approximately $63.8 million and (ii) gains associated with
the involuntary conversion of assets included in a facility that we own in
Argentina which was partially destroyed in a fire in 2014, for which we received
insurance proceeds in excess of the carrying amount of such assets during the
fourth quarter of 2018. See Note 10 to Notes to Consolidated Financial
Statements included in this Annual Report.

OTHER EXPENSES, NET

Interest Expense, Net

Consolidated interest expense, net increased $9.7 million to $419.3 million for
the year ended December 31, 2019 from $409.6 million for the year ended
December 31, 2018. The increase in interest expense, net during the year ended
December 31, 2019 compared to the year ended December 31, 2018 was the result of
higher average debt outstanding during 2019. Our weighted average interest rate
was 4.8% and 4.9% at December 31, 2019 and 2018, respectively. See Note 4 to
Notes to Consolidated Financial Statements included in this Annual Report for
additional information regarding our indebtedness.

Other Expense (Income), Net

Other expense (income), net consists of the following (in thousands):

                                                       Year Ended
                                                      December 31,          Dollar
                                                   2019         2018        Change
Foreign currency transaction losses (gains), net $ 24,852    $ (15,567 )   $ 40,419
Other, net                                          9,046        3,875        5,171
Other Expense (Income), Net                      $ 33,898    $ (11,692 )   $ 45,590

Foreign Currency Transaction Losses (Gains)

We recorded net foreign currency transaction losses of $24.9 million in the year
ended December 31, 2019, based on period-end exchange rates. These losses
resulted primarily from the impact of changes in the exchange rate of the
British pound sterling against the United States dollar compared to December 31,
2018 on our intercompany balances with and between certain of our subsidiaries.

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We recorded net foreign currency transaction gains of $15.6 million in the year
ended December 31, 2018, based on period-end exchange rates. These gains
resulted primarily from the impact of changes in the exchange rate of each of
the British pound sterling and Canadian dollar against the United States dollar
compared to December 31, 2017 on our intercompany balances with and between
certain of our subsidiaries and the Euro Notes (as defined below). These gains
were partially offset by losses resulting primarily from the impact of changes
in the exchange rate of each of the Australian dollar, Brazilian real and the
Turkish lira against the United States dollar compared to December 31, 2017 on
our intercompany balances with and between certain of our subsidiaries.

Provision (Benefit) for Income Taxes

Our effective tax rates for the years ended December 31, 2019 and 2018 were
18.3% and 10.4%, respectively. Our effective tax rate is subject to variability
in the future due to, among other items: (1) changes in the mix of income
between our QRSs and our TRSs, as well as among the jurisdictions in which we
operate; (2) tax law changes; (3) volatility in foreign exchange gains and
losses; (4) the timing of the establishment and reversal of tax reserves; and
(5) our ability to utilize net operating losses that we generate.

On December 22, 2017, the Tax Reform Legislation was enacted into law in the
United States. The Tax Reform Legislation amended the Code to reduce tax rates
and modify policies, credits and deductions for businesses and individuals. The
components of the Tax Reform Legislation are described in detail in Note 7 to
Notes to Consolidated Financial Statements included in our Annual Report. One of
the primary components of the Tax Reform Legislation was a reduction in the
United States corporate federal income tax rate from 35.0% to 21.0% for taxable
years beginning after December 31, 2017.

The primary reconciling items between the federal statutory tax rate of 21.0%
and our overall effective tax rate for the year ended December 31, 2019 were the
benefit derived from the dividends paid deduction of $40.6 million and the
impact of differences in the tax rates at which our foreign earnings are subject
to, resulting in a tax provision of $8.6 million.

The primary reconciling items between the federal statutory tax rate of 21.0%
and our overall effective tax rate for the year ended December 31, 2018 were the
benefit derived from the dividends paid deduction of $35.2 million, the impact
of differences in the tax rates at which our foreign earnings are subject to,
resulting in a tax provision of approximately $1.0 million and a discrete tax
benefit of approximately $14.0 million associated with the resolution of a tax
matter.

As a REIT, we are entitled to a deduction for dividends paid, resulting in a
substantial reduction of federal income tax expense. As a REIT, substantially
all of our income tax expense will be incurred based on the earnings generated
by our foreign subsidiaries and our domestic TRSs.

We are subject to income taxes in the United States and numerous foreign
jurisdictions. We are subject to examination by various tax authorities in
jurisdictions in which we have business operations or a taxable presence. We
regularly assess the likelihood of additional assessments by tax authorities and
provide for these matters as appropriate. Although we believe our tax estimates
are appropriate, the final determination of tax audits and any related
litigation could result in changes in our estimates.


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INCOME (LOSS) FROM CONTINUING OPERATIONS and ADJUSTED EBITDA

The following table reflects the effect of the foregoing factors on our consolidated income from continuing operations and Adjusted EBITDA (in thousands):

                                       Year Ended December 31,          

Dollar

                                        2019             2018           Change       Percentage Change
Income (Loss) from Continuing
Operations                         $    268,211     $    367,558     $  (99,347 )           (27.0 )%
Income (Loss) from Continuing
Operations as a percentage of
Consolidated Revenue                        6.3 %            8.7 %
Adjusted EBITDA                    $  1,437,605     $  1,424,824     $   12,781               0.9  %
Adjusted EBITDA Margin                     33.7 %           33.7 %


                                       Year Ended December 31,          Dollar       Percentage
                                        2018             2017           Change         Change
Income (Loss) from Continuing
Operations                         $    367,558     $    178,015     $  189,543         106.5 %
Income (Loss) from Continuing
Operations as a percentage of
Consolidated Revenue                        8.7 %            4.6 %
Adjusted EBITDA                    $  1,424,824     $  1,243,573     $  181,251          14.6 %
Adjusted EBITDA Margin                     33.7 %           32.3 %


Consolidated Adjusted EBITDA for the year ended December 31, 2019 increased by
$12.8 million, or 0.9%, and consolidated Adjusted EBITDA Margin remained
consistent with the year ended December 31, 2018. Consolidated Adjusted EBITDA
for the year ended December 31, 2018 was negatively impacted by $11.0 million of
indirect tax expenses associated with the Netherlands VAT Matter that did not
repeat in 2019. Excluding the impact of the Netherlands VAT Matter, consolidated
Adjusted EBITDA increased $1.7 million for the year ended December 31, 2019
compared to the year ended December 31, 2018, primarily due to lower variable
compensation expense and the impact of cost management actions, partially offset
by increased labor costs in our secure shredding business and higher technology
costs associated with information security investments.

Consolidated Adjusted EBITDA for the year ended December 31, 2018 increased by
$181.3 million, or 14.6%, compared to the year ended December 31, 2017,
primarily due to acquisitions within our Global Data Center Business segment,
the adoption of ASU 2014-09 and synergies associated with our acquisition of
Recall.

Segment Analysis (in thousands)

See Note 9 to Notes to Consolidated Financial Statements included in this Annual Report for a description of our reportable operating segments.

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Global RIM Business
                                                                          Percentage Change
                           Year Ended December 31,        Dollar                      Constant     Organic
                            2019            2018          Change        Actual        Currency      Growth
Storage Rental          $ 2,320,076     $ 2,301,344     $  18,732         0.8  %         3.0  %       2.2  %
Service                   1,492,357       1,541,256       (48,899 )      (3.2 )%        (1.0 )%      (1.3 )%
Segment Revenue         $ 3,812,433     $ 3,842,600     $ (30,167 )      (0.8 )%         1.4  %       0.8  %
Segment Adjusted
EBITDA(1)               $ 1,563,223     $ 1,569,353     $  (6,130 )
Segment Adjusted EBITDA
Margin(2)                      41.0 %          40.8 %


                                                                         Percentage Change
                           Year Ended December 31,        Dollar                     Constant     Organic
                            2018            2017          Change        Actual       Currency     Growth
Storage Rental          $ 2,301,344     $ 2,261,831     $  39,513         1.7 %         2.0 %        2.3 %
Service                   1,541,256       1,444,279        96,977         6.7 %         7.1 %        5.1 %
Segment Revenue         $ 3,842,600     $ 3,706,110     $ 136,490         3.7 %         4.0 %        3.4 %
Segment Adjusted
EBITDA(1)               $ 1,569,353     $ 1,470,579     $  98,774
Segment Adjusted EBITDA
Margin(2)                      40.8 %          39.7 %


_______________________________________________________________________________

(1)    See "Non-GAAP Measures-Adjusted EBITDA" in this Annual Report for the
       definitions of Adjusted EBITDA and Adjusted EBITDA Margin, a
       reconciliation of Adjusted EBITDA to Income (Loss) from Continuing

Operations and a discussion of why we believe these non-GAAP measures

       provide relevant and useful information to our current and potential
       investors.

(2) Segment Adjusted EBITDA Margin is calculated by dividing Segment Adjusted

EBITDA by total segment revenues.

For the year ended December 31, 2019, reported revenue in our Global RIM
Business segment decreased 0.8%, compared to the year ended December 31, 2018,
due to unfavorable fluctuations in foreign currency exchange rates, partially
offset by organic revenue growth and the favorable net impact of
acquisitions/dispositions. Organic revenue growth of 0.8% was primarily the
result of organic storage rental revenue growth of 2.2% driven by revenue
management. In addition, negative organic service revenue growth of 1.3% was
driven by continued declines in recycled paper prices, lower destructions and
reduced retrieval/re-file and related transportation activity, partially offset
by growth in our secure shredding revenue and increased project activity.
Adjusted EBITDA Margin increased 20 basis points during the year ended
December 31, 2019 compared to the year ended December 31, 2018, primarily driven
by lower compensation expense and other employee related costs, partially offset
by increased facility rent expense and the impact of lower recycled paper
prices. The decrease in compensation expense is primarily due to a reduction in
variable compensation expense, partially offset by increased labor costs related
to growth in our secure shredding operations.
For the year ended December 31, 2018, reported revenue in our Global RIM
Business segment increased 3.7% compared to the year ended December 31, 2017,
due to organic revenue growth, the favorable net impact of
acquisitions/divestitures and the adoption of ASU 2014-09, partially offset by
unfavorable fluctuations in foreign currency exchange rates. Organic revenue
growth of 3.4% was primarily the result of organic storage rental revenue growth
of 2.3%, driven by revenue management and organic service revenue growth of
5.1%, driven by growth in secure shredding revenue, in part due to higher
recycled paper prices and acquisitions of customer relationships, as well as
increased project and destruction activity. The net impact of
acquisitions/divestitures and the adoption of ASU 2014-09 contributed 0.6% to
the reported revenue growth rates in our Global RIM Business segment for the
year ended December 31, 2018, compared to the year ended December 31, 2017.
Adjusted EBITDA Margin increased 110 basis points during the year ended
December 31, 2018 compared to the year ended December 31, 2017, primarily driven
by a decrease in wages and benefits as a percentage of segment revenue,
partially attributable to synergies associated with our acquisition of Recall,
cost management initiatives, the capitalization of certain commissions as a
result of our adoption of ASU 2014-09 and the benefit of revenue management.

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Global Data Center Business
                                                                           Percentage Change
                           Year Ended December 31,         Dollar                      Constant     Organic
                             2019             2018         Change        Actual        Currency      Growth
Storage Rental          $    246,925      $  218,675     $  28,250        12.9  %        13.4  %       5.3  %
Service                       10,226          10,308           (82 )      (0.8 )%        (0.7 )%      (4.8 )%
Segment Revenue         $    257,151      $  228,983     $  28,168        12.3  %        12.8  %       4.8  %
Segment Adjusted
EBITDA(1)               $    121,517      $   99,574     $  21,943
Segment Adjusted EBITDA
Margin(2)                       47.3 %          43.5 %


                                                                           Percentage Change
                            Year Ended December 31,         Dollar                    Constant     Organic
                             2018              2017         Change        Actual      Currency     Growth
Storage Rental          $    218,675       $   35,839     $ 182,836       510.2 %       510.2 %       8.2 %
Service                       10,308            1,855         8,453       455.7 %       455.7 %      24.5 %
Segment Revenue         $    228,983       $   37,694     $ 191,289       507.5 %       507.5 %       9.0 %
Segment Adjusted
EBITDA(1)               $     99,574       $   11,275     $  88,299
Segment Adjusted EBITDA
Margin(2)                       43.5 %           29.9 %


_______________________________________________________________________________

(1)    See "Non-GAAP Measures-Adjusted EBITDA" in this Annual Report for the
       definitions of Adjusted EBITDA and Adjusted EBITDA Margin, a
       reconciliation of Adjusted EBITDA to Income (Loss) from Continuing

Operations and a discussion of why we believe these non-GAAP measures

       provide relevant and useful information to our current and potential
       investors.

(2) Segment Adjusted EBITDA Margin is calculated by dividing Segment Adjusted

EBITDA by total segment revenues.

For the year ended December 31, 2019, reported revenue in our Global Data Center
Business segment increased 12.3% compared to the year ended December 31, 2018,
primarily due to the impact of acquisitions (see Note 6 of Notes to Consolidated
Financial Statements included in this Annual Report for additional acquisition
details). The impact of acquisitions contributed 8.0% to the reported revenue
growth rate in our Global Data Center Business segment for the year ended
December 31, 2019 compared to the prior year period. Organic storage rental
revenue growth in our Global Data Center Business segment was 5.3% for the year
ended December 31, 2019 compared to the prior year period, primarily related to
a $5.4 million lease modification fee that benefited organic storage rental
revenue growth by 2.5%. Adjusted EBITDA Margin increased 380 basis points during
the year ended December 31, 2019 compared to the year ended December 31, 2018
primarily due to the impact of cost management actions, the lease modification
fee described above and a $4.0 million contractual settlement, partially offset
by higher facilities costs, in part due to acquisitions, and increased overhead
to support the growth of this business.




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Corporate and Other Business
                                                                         Percentage Change
                           Year Ended December 31,        Dollar                    Constant     Organic
                            2019            2018          Change        Actual      Currency     Growth
Storage Rental          $  114,086      $  102,436      $  11,650        11.4 %        11.9 %       3.2 %
Service                     78,914          51,742         27,172        52.5 %        55.0 %       8.2 %
Segment Revenue         $  193,000      $  154,178      $  38,822        25.2 %        26.3 %       4.9 %
Segment Adjusted
EBITDA(1)               $ (247,135 )    $ (244,103 )    $  (3,032 )
Segment Adjusted
EBITDA(1) as a
Percentage of
Consolidated Revenue          (5.8 )%         (5.8 )%


                                                                         Percentage Change
                           Year Ended December 31,        Dollar                    Constant     Organic
                            2018            2017          Change        Actual      Currency     Growth
Storage Rental          $  102,436      $   79,887      $  22,549        28.2 %        28.4 %       3.7 %
Service                     51,742          21,887         29,855       136.4 %       143.9 %      21.2 %
Segment Revenue         $  154,178      $  101,774      $  52,404        51.5 %        52.6 %       7.5 %
Segment Adjusted
EBITDA(1)               $ (244,103 )    $ (238,281 )    $  (5,822 )
Segment Adjusted
EBITDA(1) as a
Percentage of
Consolidated Revenue          (5.8 )%         (6.2 )%

_______________________________________________________________________________

(1)    See "Non-GAAP Measures-Adjusted EBITDA" in this Annual Report for the
       definition of Adjusted EBITDA, a reconciliation of Adjusted EBITDA to
       Income (Loss) from Continuing Operations and a discussion of why we

believe this non-GAAP measure provides relevant and useful information to

our current and potential investors.

For the year ended December 31, 2019, reported revenue in our Corporate and
Other Business segment increased 25.2% compared to the year ended December 31,
2018, primarily due to the impact of acquisitions. The impact of acquisitions
contributed 21.4% to the reported revenue growth rate in our Corporate and Other
Business segment for the year ended December 31, 2019 compared to the prior year
period. Adjusted EBITDA in our Corporate and Other Business segment decreased
$3.0 million in the year ended December 31, 2019 compared to the year ended
December 31, 2018. Adjusted EBITDA for the year ended December 31, 2018 was
negatively impacted by $11.0 million of indirect tax expenses associated with
the Netherlands VAT Matter that did not repeat in 2019. Excluding the impact of
the Netherlands VAT Matter, Adjusted EBITDA in our Corporate and Other Business
segment decreased $14.1 million in the year ended December 31, 2019 compared to
the year ended December 31, 2018, primarily driven by higher compensation
expense and professional fees associated with investments in our global
operations support team that is tasked with driving operational improvements and
continued investment in innovation and product development, partially offset by
profitability associated with recent acquisitions in our Adjacent Businesses
operating segment. The increase in compensation expense is primarily the result
of merit-based increases as well as increased headcount, partially offset by a
reduction in variable compensation expense.


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Liquidity and Capital Resources

Project Summit

As disclosed above, in October 2019, we announced Project Summit. We estimate
that the implementation of Project Summit will result in total costs of
approximately $240.0 million. During the fourth quarter of 2019, we incurred
approximately $48.6 million of costs related to Project Summit which were
comprised entirely of Restructuring Charges, primarily related to employee
severance costs and professional fees.

Cash Flows

The following is a summary of our cash balances and cash flows (in thousands) as of and for the years ended December 31,

                                                 2019             2018      

2017

Cash flows from operating
activities-continuing operations             $   966,655     $    936,544     $   724,259
Cash flows from investing
activities-continuing operations                (735,946 )     (2,230,128 )      (599,448 )
Cash flows from financing
activities-continuing operations                (198,973 )        550,678   

540,425

Cash and cash equivalents at the end of year 193,555 165,485

925,699

a. Cash Flows from Operating Activities

For the year ended December 31, 2019, net cash flows provided by operating activities increased by $30.1 million compared to the prior year period primarily due to a decrease in cash used in working capital of $47.6 million, primarily related to the timing of collections of accounts receivable and certain prepaid and accrued expenses, partially offset by a decrease in net income (including non-cash charges and realized foreign exchange losses) of $17.5 million.

b. Cash Flows from Investing Activities

Our business requires capital expenditures to maintain our ongoing operations,
support our expected revenue growth and new products and services, and increase
our profitability. These expenditures are included in the cash flows from
investing activities. The nature of our capital expenditures has evolved over
time along with the nature of our business. Our capital goes to support
business-line growth and our ongoing operations, but we also expend capital to
support the development and improvement of products and services and projects
designed to increase our profitability. These expenditures are generally
discretionary in nature.

Our significant investing activities for the year ended December 31, 2019 are highlighted below:

• We paid cash for acquisitions (net of cash acquired) of $58.2 million,

primarily funded by borrowings under our Revolving Credit Facility.

• We paid cash for capital expenditures of $693.0 million. Our business

requires capital expenditures to maintain our ongoing operations, support

our expected revenue growth and new products and services, and increase

       our profitability. All of these expenditures are included in the cash
       flows from investing activities. Additional details of our capital
       spending is included in the Capital Expenditures section below.

• We acquired customer relationships, and incurred both customer inducements

(which consists of permanent withdrawal fees following the adoption of ASU

2014-09) and Contract Fulfillment Costs (as defined in Note 2.l. to Notes

to Consolidated Financial Statements included in this Annual Report) and

third-party commissions for the year ended December 31, 2019 of $46.1

million, $9.4 million and $76.2 million, respectively.

• We paid $19.2 million as part of our investment in the MakeSpace JV (as

discussed above).

• We received proceeds of $166.1 million primarily related to the sale of

       facilities in the United States and the United Kingdom.




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c. Cash Flows from Financing Activities

Our significant financing activities for the year ended December 31, 2019 included:

•      Net proceeds of $987.5 million associated with the issuance of the 47/8%
       Senior Notes due 2029 (as defined below).

• Net payments of $475.3 million primarily associated with the repayments on

our Revolving Credit Facility.

• Payment of dividends in the amount of $704.5 million on our common stock.

Capital Expenditures

We present two categories of capital expenditures: (1) Growth Investment Capital
Expenditures and (2) Recurring Capital Expenditures with the following
sub-categories: (i) Real Estate, (ii) Non-Real Estate, (iii) Data Center and
(iv) Innovation (for growth investment only).

Growth Investment Capital Expenditures:

• Real Estate: Expenditures primarily related to investments in land,

       buildings, building improvements, leasehold improvements and racking
       structures to grow our revenues or achieve operational efficiencies.

• Non-Real Estate: Expenditures that support the growth of our business,

and/or increase our profitability, such as customer-inventory technology

       systems, security upgrades or system enhancements.


•      Data Center: Expenditures primarily related to investments in new
       construction of data center facilities (including the acquisition of land
       and development of facilities) or capacity expansion in existing
       buildings.

• Innovation: Discretionary capital expenditures in significant new products

and services in new, existing or adjacent business opportunities.

Recurring Capital Expenditures:

• Real Estate: Expenditures primarily related to the replacement of

components of real estate assets such as buildings, building improvements,

       leasehold improvements and racking structures.



•      Non-Real Estate: Expenditures primarily related to the replacement of
       customer-facing assets such as containers and shred bins, warehouse
       equipment, fixtures, computer hardware, or third-party or
       internally-developed software assets.

• Data Center: Expenditures related to the upgrade or re-configuration of

       existing data center assets.




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The following table presents our capital spend for 2019, 2018 and 2017 organized
by the type of the spending as described above.
Nature of Capital Spend (in thousands)                2019           2018   

2017

Growth Investment Capital Expenditures:
Real Estate                                       $  133,093     $  138,307     $  139,822
Non-Real Estate                                       47,221         52,737         56,297
Data Center                                          402,741        162,666         92,265
Innovation                                            14,705         15,857         20,583

Total Growth Investment Capital Expenditures 597,760 369,567

308,967

Recurring Capital Expenditures:
Real Estate                                           55,444         73,146         77,660
Non-Real Estate                                       28,882         23,187         29,721
Data Center                                            8,589          9,051            332
Total Recurring Capital Expenditures                  92,915        105,384 

107,713

Total Capital Spend (on accrual basis)               690,675        474,951 

416,680

Net increase (decrease) in prepaid capital
expenditures                                             510         (1,844 )        1,629
Net decrease (increase) in accrued capital
expenditures(1)                                        1,798        (13,045 )      (75,178 )
Total Capital Spend (on cash basis)               $  692,983     $  460,062

$ 343,131

___________________________________________________________________

(1) The amount at December 31, 2017 includes approximately $66,800 related to

a financing lease associated with our data center in Manassas, Virginia.

Excluding capital expenditures associated with potential future acquisitions,
opportunistic real estate investments and capital expenditures associated with
Project Summit, we expect our recurring capital expenditures on real estate and
non-real estate, as well as non-real estate growth investment capital
expenditures, to be approximately $140.0 million to $160.0 million, our capital
expenditures on our Global Data Center Business to be approximately $200.0
million and our capital expenditures on real estate growth investment and
innovation to be approximately $150.0 million to $175.0 million in the year
ending December 31, 2020.

Dividends

See Note 12 to Notes to Consolidated Financial Statements included in this Annual Report for information on dividends.

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Financial Instruments and Debt

Financial instruments that potentially subject us to credit risk consist
principally of cash and cash equivalents (including money market funds and time
deposits) and accounts receivable. As per our risk management investment policy,
we limit exposure to concentration of credit risk by limiting the amount
invested in any one mutual fund to a maximum of 1% of the fund total assets or
in any one financial institution to a maximum of $75.0 million. As of
December 31, 2019, our cash and cash equivalents balance, including restricted
cash, was $193.6 million.

Long-term debt as of December 31, 2019 is as follows (in thousands):

                                                                      December 31, 2019
                                                                        Unamortized
                                                 Debt (inclusive    Deferred Financing
                                                  of discount)             Costs            Carrying Amount
Revolving Credit Facility                       $     348,808       $      (12,053 )      $         336,755
Term Loan A                                           228,125                    -                  228,125
Term Loan B                                           686,395               (7,493 )                678,902
Australian Dollar Term Loan (the "AUD Term
Loan")                                                226,924               (2,313 )                224,611
UK Bilateral Revolving Credit Facility (the "UK
Bilateral Facility")                                  184,601               (1,801 )                182,800
43/8% Senior Notes due 2021 (the "43/8% Notes")       500,000               (2,436 )                497,564
6% Senior Notes due 2023                              600,000               (4,027 )                595,973
53/8% CAD Senior Notes due 2023 (the "CAD Notes
due 2023")                                            192,058               (2,071 )                189,987
53/4% Senior Subordinated Notes due 2024            1,000,000               (6,409 )                993,591
3% Euro Senior Notes due 2025 (the "Euro
Notes")                                               336,468               (3,462 )                333,006
37/8% GBP Senior Notes due 2025 (the "GBP Notes
due 2025")                                            527,432               (5,809 )                521,623
53/8% Senior Notes due 2026 (the "53/8% Notes")       250,000               (2,756 )                247,244
47/8% Senior Notes due 2027 (the "47/8% Notes
due 2027")                                          1,000,000              (11,020 )                988,980
51/4% Senior Notes due 2028 (the "51/4% Notes")       825,000               (9,742 )                815,258
47/8% Senior Notes due 2029 (the "47/8% Notes
due 2029")                                          1,000,000              (14,104 )                985,896
Real Estate Mortgages, Financing Lease
Liabilities and Other                                 523,671                 (406 )                523,265
Accounts Receivable Securitization Program            272,062                  (81 )                271,981
Mortgage Securitization Program                        50,000                 (982 )                 49,018
Total Long-term Debt                                8,751,544              (86,965 )              8,664,579
Less Current Portion                                 (389,013 )                  -                 (389,013 )

Long-term Debt, Net of Current Portion $ 8,362,531 $ (86,965 ) $ 8,275,566

See Note 4 to Notes to Consolidated Financial Statements included in this Annual Report for additional information regarding our long-term debt.

a. Credit Agreement

On August 21, 2017, we entered into a new credit agreement (the "Credit
Agreement") which amended and restated our then existing credit agreement which
consisted of a revolving credit facility (the "Former Revolving Credit
Facility") and a term loan and was scheduled to terminate on July 6, 2019. The
Credit Agreement consists of a revolving credit facility (the "Revolving Credit
Facility") and a term loan (the "Term Loan A"). The maximum amount permitted to
be borrowed under the Revolving Credit Facility is $1,750.0 million. The
original principal amount of the Term Loan A was $250.0 million. Under the
Revolving Credit Facility, we had the option to request additional commitments
of up to $500.0 million, in the form of term loans or through increased
commitments under the Revolving Credit Facility, subject to the conditions
specified in the Credit Agreement. The Credit Agreement was originally scheduled
to mature on August 21, 2022, at which point all obligations were to become due.

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On March 22, 2018, we entered into an amendment (the "March 2018 Amendment") to
the Credit Agreement which provided us with the option to request additional
commitments of up to approximately $1,260.0 million under the Credit Agreement
in the form of term loans or through increased commitments under the Revolving
Credit Facility, subject to the conditions specified in the Credit Agreement. On
June 4, 2018, we entered into another amendment (the "June 2018 Amendment") to
the Credit Agreement which (i) reduced interest rate margins applicable to
existing and future borrowings under the Revolving Credit Facility and Term Loan
A by 0.25% and (ii) extended the maturity date of the Credit Agreement to June
4, 2023. The Term Loan A is to be paid in quarterly installments in an amount
equal to $3.1 million per quarter, with the remaining balance due on June 4,
2023.

On December 20, 2019, we entered into an amendment (the "December 2019
Amendment") to the Credit Agreement. The December 2019 Amendment amended the
definition of EBITDA and certain other definitions and restrictive covenants
contained in the Credit Agreement.

The Revolving Credit Facility enables IMI and certain of its United States and
foreign subsidiaries to borrow in United States dollars and (subject to
sublimits) a variety of other currencies (including Canadian dollars, British
pounds sterling and Euros, among other currencies) in an aggregate outstanding
amount not to exceed $1,750.0 million.

The amount available for borrowing under the Revolving Credit Facility as of
December 31, 2019, which is based on IMI's leverage ratio, the last 12 months'
earnings before interest, taxes, depreciation and amortization and rent expense
("EBITDAR"), other adjustments as defined in the Credit Agreement and current
external debt, was $1,396.3 million (which amount represents the maximum
availability as of such date). Available borrowings under the Revolving Credit
Facility are subject to compliance with our indenture covenants as described
more fully below.

In connection with the March 2018 Amendment, IMI's wholly owned subsidiary, Iron
Mountain Information Management, LLC ("IMIM"), entered into an incremental term
loan activation notice (the "Activation Notice"), with certain lenders pursuant
to which the lenders party to the Activation Notice agreed to provide
commitments to fund an incremental term loan B in the original principal amount
of $700.0 million (the "Term Loan B"). On March 26, 2018, IMIM borrowed the full
amount of the Term Loan B, which matures on January 2, 2026. The Term Loan B was
issued at 99.75% of par. The aggregate net proceeds of approximately $689.9
million, after paying commissions to the joint lead arrangers and net of the
original discount, were used to repay outstanding borrowings under the Revolving
Credit Facility. The Term Loan B holders benefit from the same security and
guarantees as other borrowings under the Credit Agreement. The Term Loan B
holders also benefit from the same affirmative and negative covenants as other
borrowings under the Credit Agreement; however, the Term Loan B holders are not
generally entitled to the benefits of the financial covenants under the Credit
Agreement.

As of December 31, 2019, we had $686.4 million outstanding on the Term Loan B
and the interest rate in effect under the Term Loan B was 3.6%. The amount of
debt for the Term Loan B reflects an unamortized original issue discount of $1.4
million as of December 31, 2019.

b. Issuance of 47/8% Notes due 2029

In September 2019, IMI completed a private offering of $1,000.0 million in
aggregate principal amount of the 47/8% Notes due 2029. The 47/8% Notes due 2029
were issued at par. The net proceeds of approximately $987.5 million from the
47/8% Notes due 2029, after paying the initial purchasers' commissions, were
used to repay outstanding borrowings under the Revolving Credit Facility.

c. Australian Dollar Term Loan Amendment

On March 27, 2018, Iron Mountain Australia Group Pty Ltd. ("IM Australia"), a
wholly owned subsidiary of IMI, amended its AUD Term Loan (the "AUD Term Loan
Amendment") to (i) increase the borrowings under the AUD Term Loan from 250.0
million Australian dollars to 350.0 million Australian dollars; (ii) increase
the quarterly principal payments from 6.3 million Australian dollars per year to
8.8 million Australian dollars per year; and (iii) decrease the interest rate on
the AUD Term Loan from BBSY (an Australian benchmark variable interest rate)
plus 4.3% to BBSY plus 3.875%. The interest rate in effect under the AUD Term
Loan was 4.8% as of December 31, 2019. The AUD Term Loan matures in September
2022. All indebtedness associated with the AUD Term Loan was issued at 99% of
par. The net proceeds associated with the AUD Term Loan Amendment of
approximately 99.0 million Australian dollars (or approximately $75.6 million,
based upon the exchange rate between the Australian dollar and the United States
dollar on March 29, 2018 (the closing date of the AUD Term Loan Amendment)), net
of the original discount, were used to repay outstanding borrowings under the
Revolving Credit Facility. See Note 4 to Notes to Consolidated Financial
Statements included in this Annual Report for additional details on the AUD Term
Loan.

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d. UK Bilateral Revolving Credit Facility

On September 24, 2018, Iron Mountain (UK) PLC ("IM UK") and Iron Mountain (UK)
Data Centre Limited entered into a 140.0 million British pounds sterling
Revolving Credit Facility (the "UK Bilateral Facility") with Barclays Bank PLC.
The maximum amount permitted to be borrowed under the UK Bilateral Facility is
140.0 million British pounds sterling, and we have the option to request
additional commitments of up to 125.0 million British pounds sterling, subject
to the conditions specified in the UK Bilateral Facility. The UK Bilateral
Facility was fully utilized on September 24, 2018 (the closing date of the UK
Bilateral Facility). The initial net proceeds received under the UK Bilateral
Facility of 138.3 million British pounds sterling (or approximately $180.3
million, based upon the exchange rate between the British pound sterling and the
United States dollar on September 24, 2018 (the closing date of the UK Bilateral
Facility)), net of upfront fees, were used to repay borrowings under the
Revolving Credit Facility. The UK Bilateral Facility is secured by certain
properties in the United Kingdom. IMI and its direct and indirect 100% owned
United States subsidiaries that represent the substantial majority of its United
States operations guarantee all the obligations under the UK Bilateral Facility.
The UK Bilateral Facility is scheduled to mature on September 23, 2022, at which
point all obligations become due. The UK Bilateral Facility contains an option
to extend the maturity date for an additional year, subject to the conditions
specified in the UK Bilateral Facility, including the lender's consent. The UK
Bilateral Facility bears interest at LIBOR plus 2.25%. The interest rate in
effect under the UK Bilateral Facility as of December 31, 2019 was 3.1%.

e. Accounts Receivable Securitization Program

In March 2015, we entered into a $250.0 million accounts receivable
securitization program (the "Accounts Receivable Securitization Program")
involving several of our wholly owned subsidiaries and certain financial
institutions. Under the Accounts Receivable Securitization Program, certain of
our subsidiaries sell substantially all of their United States accounts
receivable balances to our wholly owned special purpose entities, Iron Mountain
Receivables QRS, LLC and Iron Mountain Receivables TRS, LLC (the "Accounts
Receivable Securitization Special Purpose Subsidiaries"). The Accounts
Receivable Securitization Special Purpose Subsidiaries use the accounts
receivable balances to collateralize loans obtained from certain financial
institutions. The Accounts Receivable Securitization Special Purpose
Subsidiaries are consolidated subsidiaries of IMI. IMIM retains the
responsibility of servicing the accounts receivable balances pledged as
collateral for the Accounts Receivable Securitization Program and IMI provides a
performance guaranty. The maximum availability allowed is limited by eligible
accounts receivable, as defined under the terms of the Accounts Receivable
Securitization Program.

On July 31, 2017, we amended the Accounts Receivable Securitization Program to
(i) increase the maximum amount available from $250.0 million to $275.0 million
and (ii) to extend the maturity date from March 6, 2018 to July 30, 2020, at
which point all obligations become due. As the Accounts Receivable
Securitization Program matures on July 30, 2020, the amount outstanding under
the Accounts Receivable Securitization Program is classified within the current
portion of long-term debt in our Consolidated Balance Sheet as of December 31,
2019. As of December 31, 2019, the maximum availability allowed and amount
outstanding under the Accounts Receivable Securitization Program was $272.1
million. The interest rate in effect under the Accounts Receivable
Securitization Program was 2.8% as of December 31, 2019. Commitment fees at a
rate of 40 basis points are charged on amounts made available but not borrowed
under the Accounts Receivable Securitization Program.

f. Letters of Credit

As of December 31, 2019, we had outstanding letters of credit totaling $35.3
million, of which $4.9 million reduce our borrowing capacity under the Revolving
Credit Facility (as described above). The letters of credit expire at various
dates between January 2020 and January 2033.

g. Debt Covenants

The Credit Agreement, our indentures and other agreements governing our
indebtedness contain certain restrictive financial and operating covenants,
including covenants that restrict our ability to complete acquisitions, pay cash
dividends, incur indebtedness, make investments, sell assets and take certain
other corporate actions. The covenants do not contain a rating trigger.
Therefore, a change in our debt rating would not trigger a default under the
Credit Agreement, our indentures or other agreements governing our indebtedness.
The Credit Agreement uses EBITDAR-based calculations as the primary measures of
financial performance, including leverage and fixed charge coverage ratios.

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Our leverage and fixed charge coverage ratios under the Credit Agreement as of
December 31, 2019 and 2018, as well as our leverage ratio under our indentures
as of December 31, 2019 and 2018 are as follows:
                              December 31,    December 31,        Maximum/Minimum
                                  2019            2018               Allowable
Net total lease adjusted
leverage ratio                        5.7             5.6     Maximum allowable of 6.5
Net secured debt lease
adjusted leverage ratio               2.3             2.6     Maximum allowable of 4.0
Bond leverage ratio (not                                      Maximum allowable of
lease adjusted)                       5.9             5.8     6.5-7.0(1)
Fixed charge coverage ratio           2.2             2.2     Minimum allowable of 1.5

______________________________________________________________

(1)    The maximum allowable leverage ratio under our indentures for the GBP
       Notes due 2025, the 47/8% Notes due 2027, the 51/4% Notes and the 47/8%
       Notes due 2029 is 7.0, while the maximum allowable leverage ratio under

the indentures pertaining to our remaining senior and senior subordinated

notes is 6.5. In certain instances as provided in our indentures, we have

the ability to incur additional indebtedness that would result in our bond

leverage ratio exceeding the maximum allowable ratio under our indentures

and still remain in compliance with the covenant.

Noncompliance with these leverage and fixed charge coverage ratios would have a material adverse effect on our financial condition and liquidity. _______________________________________________________________________________

Our ability to pay interest on or to refinance our indebtedness depends on our
future performance, working capital levels and capital structure, which are
subject to general economic, financial, competitive, legislative, regulatory and
other factors which may be beyond our control. There can be no assurance that we
will generate sufficient cash flow from our operations or that future financings
will be available on acceptable terms or in amounts sufficient to enable us to
service or refinance our indebtedness or to make necessary capital expenditures.

Derivative Instruments

In July 2019, we entered into forward-starting interest rate swap agreements to
limit our exposure to changes in interest rates on a portion of our floating
rate indebtedness once our current interest rate swaps expire in March 2022. The
forward-starting interest rate swap agreements have $350.0 million in notional
value, commence in March 2022 and expire in March 2024. Under the swap
agreements we will receive variable rate interest payments based upon one-month
LIBOR, in exchange for the payment of fixed interest rate payments at the rates
specified in the interest rate swap agreements. We have designated these
interest rate swap agreements as cash flow hedges.

In August 2019, we entered into cross-currency swap agreements to hedge the
variability of exchange rate impacts between the United States dollar and the
Euro. Under the terms of the cross-currency swap agreements we notionally
exchanged approximately $110.0 million at an interest rate of 6.0% for
approximately 99.1 million Euros at a weighted average interest rate of
approximately 3.65%. The cross-currency swap agreements, which expire in August
2023, are designated as a hedge of net investment against certain of our Euro
denominated subsidiaries and require an exchange of the notional amounts at
maturity. We have designated these cross-currency swap agreements as net
investment hedges.

See Note 3 to Notes to Consolidated Financial Statements included in this Annual Report for additional information on our derivative instruments.

Equity Financing

In October 2017, we entered into the Distribution Agreement with the Agents
pursuant to which we may sell, from time to time, up to an aggregate sales price
of $500.0 million of our common stock through the At The Market (ATM) Equity
Program. Sales of our common stock made pursuant to the Distribution Agreement
may be made in negotiated transactions or transactions that are deemed to be "at
the market" offerings as defined in Rule 415 under the Securities Act, including
sales made directly on the NYSE, or sales made to or through a market maker
other than on an exchange, or as otherwise agreed between the applicable Agent
and us. We intend to use the net proceeds from sales of our common stock
pursuant to the At The Market (ATM) Equity Program for general corporate
purposes, which may include acquisitions and investments, including acquisitions
and investments in our Global Data Center Business, and repaying amounts
outstanding from time to time under the Revolving Credit Facility.


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During the quarter and year ended December 31, 2019, there were no shares of
common stock sold under the At The Market (ATM) Equity Program. As of
December 31, 2019, the remaining aggregate sale price of shares of our common
stock available for distribution under the At The Market (ATM) Equity Program
was approximately $431.2 million.

See Note 12 to Notes to Consolidated Financial Statements included in this Annual Report for additional information regarding our equity financing.

Acquisitions

a. Acquisitions

See Note 6 to Notes to Consolidated Financial Statements included in this Annual Report for information regarding our 2019 acquisitions.

On January 9, 2020, we acquired the remaining 75% equity interest in OSG for
cash consideration of 6,026 million Russian rubles (or approximately $95.1
million, based upon the exchange rate between the Russian ruble and the United
States dollar on the closing date of the OSG Acquisition) (the "OSG
Acquisition"). The OSG Acquisition will enable us to extend our Global RIM
Business in Russia, Ukraine, Kazakhstan, Belarus, and Armenia. Commencing on the
date of the OSG Acquisition we will fully consolidate the results of OSG within
our consolidated financial statements.

b. Significant Acquisition Costs and Capital Expenditures

Included in Significant Acquisition Costs are certain costs associated with the
Recall Transaction and the IODC Transaction. Significant Acquisition Costs
associated with the Recall Transaction and the IODC Transaction and capital
expenditures to integrate Recall with our existing operations ("Recall Capital
Expenditures"), were $403.8 million, the substantial majority of which were
incurred prior to the end of 2018.

The following table presents the cumulative amount of Significant Acquisition
Costs and Recall Capital Expenditures incurred for the years ended December 31,
2019, 2018 and 2017 and the cumulative amount incurred through December 31, 2019
(in thousands):
                                     Year Ended December 31,                Cumulative Total Through
                              2019             2018             2017            December 31, 2019
Significant
Acquisition Costs        $     13,293     $     50,665     $     84,901     $               327,817
Recall Capital
Expenditures                    2,447           23,640           31,441                      75,984
Total                    $     15,740     $     74,305     $    116,342     $               403,801




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Contractual Obligations

The following table summarizes our contractual obligations as of December 31,
2019 and the anticipated effect of these obligations on our liquidity in future
years (in thousands):
                                                        Payments Due by Period
                                               Less than                                       More than
                                Total           1 Year         1-3 Years       3-5 Years        5 Years
Financing Lease
Obligations(1)              $    511,019     $    62,271     $    99,879     $    70,979     $   277,890
Long-Term Debt Obligations
(excluding Financing Lease
Obligations)                   8,386,949         342,430       1,026,353       2,376,165       4,642,001
Interest Payments(2)           2,241,373         395,344         713,343         568,046         564,640
Operating Lease
Obligations(3)                 2,915,409         339,469         615,609         505,413       1,454,918
Purchase, Asset Retirement
and Other Obligations(4)         269,975         134,127         100,688           3,989          31,171
Total(5)(6)                 $ 14,324,725     $ 1,273,641     $ 2,555,872     $ 3,524,592     $ 6,970,620

_______________________________________________________________________________

(1) Excluded from our financing lease obligations is the potential obligation

related to an agreement we entered into in the fourth quarter of 2019 to

       lease a facility in the United Kingdom that is currently under
       construction. The exact terms of the lease will be determined upon the
       completion of building construction, which is expected to occur in late
       2020. We expect the rent due in the first year of the lease to be
       approximately $5.0 million, and we expect the term of the lease to be
       approximately 25 years.

(2) Amounts include variable rate interest payments, which are calculated

       utilizing the applicable interest rates as of December 31, 2019; see
       Note 4 to Notes to Consolidated Financial Statements included in this
       Annual Report.


(3)    These amounts are net of sublease income of $34.1 million in total

(including $7.7 million, $10.3 million, $8.4 million and $7.7 million, in

       less than 1 year, 1-3 years, 3-5 years and more than 5 years,
       respectively).


(4)    Purchase commitments include obligations for future construction costs
       associated with the expansion of our Global Data Center Business, which
       represent a significant amount of the purchase commitments due in less
       than one year.


(5)    The table above excludes $35.1 million in uncertain tax positions as we

are unable to make reliable estimates of the period of cash settlement, if

       any, with the respective taxing authorities.


(6)    The table above excludes $67.7 million of redeemable noncontrolling
       interests, which represents the estimated redemption value of the
       redeemable noncontrolling interests. See Note 2.v. to Notes to
       Consolidated Financial Statements included in this Annual Report. This

table also excludes purchase commitments associated with acquisitions

closed or expected to close in 2020.

We expect to meet our cash flow requirements for the next twelve months from
cash generated from operations, cash on hand, borrowings under the Credit
Agreement and other financings (including the issuance of equity under our At
The Market (ATM) Equity Program). We expect to meet our long-term cash flow
requirements using the same means described above. We are currently operating
above our long-term targeted leverage ratio and expect our leverage ratio to
reduce over time through effective capital allocation strategies and business
growth.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements as defined in Regulation S-K Item 303(a)(4)(ii).

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Net Operating Losses

At December 31, 2019, we have federal net operating loss carryforwards of $152.7
million available to reduce future federal taxable income, the majority of which
expire from 2024 through 2037. Of the $152.7 million, we expect to utilize $39.2
million and realize a federal tax benefit of $8.2 million. We can carry forward
these net operating losses to the extent we do not utilize them in any given
available year. We have state net operating loss carryforwards, which expire
from 2020 through 2039, of which an insignificant state tax benefit is expected
to be realized. We have assets for foreign net operating losses of $90.8
million, with various expiration dates (and in some cases no expiration date),
subject to a valuation allowance of approximately 64%.

Inflation

Certain of our expenses, such as wages and benefits, insurance, occupancy costs
and equipment repair and replacement, are subject to normal inflationary
pressures. Although to date we have been able to offset inflationary cost
increases with increased operating efficiencies, the negotiation of favorable
long-term real estate leases and an ability to increase prices in our customer
contracts (many of which contain provisions for inflationary price escalators),
we can give no assurance that we will be able to offset any future inflationary
cost increases through similar efficiencies, leases or increased storage rental
or service charges.

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