Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

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

For the Quarterly Period Ended June 30, 2022

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

Commission file number 1-13045

IRON MOUNTAIN INCORPORATED

(Exact Name of Registrant as Specified in Its Charter)

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

One Federal Street, Boston, Massachusetts 02110

(Address of Principal Executive Offices, Including Zip Code)

(617) 535-4766

(Registrant's Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Exchange Act:

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

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒    No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒    No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

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

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐    No ☒

As of July 29, 2022, the registrant had 290,684,926 outstanding shares of common stock, $.01 par value.

Table of Contents

IRON MOUNTAIN INCORPORATED

2022 FORM 10-Q QUARTERLY REPORT

TABLE OF CONTENTS

PART I—FINANCIAL INFORMATION
	1	ITEM 1.	Unaudited Condensed Consolidated Financial Statements
		2	Condensed Consolidated Balance Sheets atJune 30, 2022 and December 31, 2021
		3	Condensed Consolidated Statements of Operations for the Three Months EndedJune 30, 2022 and 2021
		4	Condensed Consolidated Statements of Operations for theSixMonths EndedJune 30, 2022and 2021
		5	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Threeand Six MonthsEndedJune 30, 2022 and 2021
		6	Condensed Consolidated Statements of Equity for the ThreeandSixMonths EndedJune 30, 2022
		7	Condensed Consolidated Statements of Equity for the Three andSixMonths EndedJune 30, 2021
		8	Condensed Consolidated Statements of Cash Flows for theSixMonths EndedJune 30, 2022 and 2021
		9	Notes to Condensed Consolidated Financial Statements
	32	ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations
	53	ITEM 4.	Controls and Procedures
PART II—OTHER INFORMATION
	55	ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds
	55	ITEM 6.	Exhibits
	56	Signatures

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	1

Table of Contents

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) (UNAUDITED)

	JUNE 30, 2022		DECEMBER 31, 2021
ASSETS
Current Assets:
Cash and cash equivalents	$	144,746	$	255,828
Accounts receivable (less allowances of $55,715 and $62,009 as of June 30, 2022 and December 31, 2021, respectively)	1,116,329		961,419
Prepaid expenses and other	280,944		224,020
Total Current Assets	1,542,019		1,441,267
Property, Plant and Equipment:
Property, plant and equipment	8,690,956		8,647,303
Less—Accumulated depreciation	(4,072,787)		(3,979,159)
Property, Plant and Equipment, Net	4,618,169		4,668,144
Other Assets, Net:
Goodwill	4,923,691		4,463,531
Customer and supplier relationships and other intangible assets	1,508,526		1,181,043
Operating lease right-of-use assets	2,512,377		2,314,422
Other	517,537		381,624
Total Other Assets, Net	9,462,131		8,340,620
Total Assets	$	15,622,319	$	14,450,031
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of long-term debt	$	86,790	$	309,428
Accounts payable	435,475		369,145
Accrued expenses and other current liabilities (includes current portion of operating lease liabilities)	957,507		1,032,537
Deferred revenue	302,494		307,470
Total Current Liabilities	1,782,266		2,018,580
Long-term Debt, net of current portion	9,993,126		8,962,513
Long-term Operating Lease Liabilities, net of current portion	2,371,270		2,171,472
Other Long-term Liabilities	404,703		144,053
Deferred Income Taxes	325,222		223,934
Commitments and Contingencies
Redeemable Noncontrolling Interests	93,957		72,411
Equity:
Preferred stock (par value $0.01; authorized 10,000,000 shares; none issued and outstanding)	—		—
Common stock (par value $0.01; authorized 400,000,000 shares; issued and outstanding 290,679,958 and 289,757,061 shares as of June 30, 2022 and December 31, 2021, respectively)	2,907		2,898
Additional paid-in capital	4,432,009		4,412,553
(Distributions in excess of earnings) Earnings in excess of distributions	(3,340,992)		(3,221,152)
Accumulated other comprehensive items, net	(446,975)		(338,347)
Total Iron Mountain Incorporated Stockholders' Equity	646,949		855,952
Noncontrolling Interests	4,826		1,116
Total Equity	651,775		857,068
Total Liabilities and Equity	$	15,622,319	$	14,450,031

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

IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	2

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Part I. Financial Information

IRON MOUNTAIN INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)

	THREE MONTHS ENDED JUNE 30,
	2022		2021
Revenues:
Storage rental	$	753,126	$	718,272
Service	536,408		401,484
Total Revenues	1,289,534		1,119,756
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	556,476		474,579
Selling, general and administrative	295,394		259,779
Depreciation and amortization	178,254		166,685
Acquisition and Integration Costs	16,878		2,277
Restructuring Charges	—		39,443
(Gain) Loss on disposal/write-down of property, plant and equipment, net	(51,249)		(128,935)
Total Operating Expenses	995,753		813,828
Operating Income (Loss)	293,781		305,928
Interest Expense, Net (includes Interest Income of $2,171 and $1,127 for the three months ended<br><br>June 30, 2022 and 2021, respectively)	115,057		105,220
Other (Income) Expense, Net	(41,217)		(186,230)
Net Income (Loss) Before Provision (Benefit) for Income Taxes	219,941		386,938
Provision (Benefit) for Income Taxes	18,083		110,416
Net Income (Loss)	201,858		276,522
Less: Net Income (Loss) Attributable to Noncontrolling Interests	1,777		1,237
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	200,081	$	275,285
Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated:
Basic	$	0.69	$	0.95
Diluted	$	0.68	$	0.95
Weighted Average Common Shares Outstanding—Basic	290,756		289,247
Weighted Average Common Shares Outstanding—Diluted	292,487		291,079

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

IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	3

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Part I. Financial Information

IRON MOUNTAIN INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)

	SIX MONTHS ENDED JUNE 30,
	2022		2021
Revenues:
Storage rental	$	1,504,196	$	1,426,328
Service	1,033,384		775,468
Total Revenues	2,537,580		2,201,796
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	1,103,098		926,488
Selling, general and administrative	576,117		518,502
Depreciation and amortization	361,869		332,327
Acquisition and Integration Costs	32,539		2,277
Restructuring Charges	—		79,254
(Gain) Loss on disposal/write-down of property, plant and equipment, net	(51,954)		(133,386)
Total Operating Expenses	2,021,669		1,725,462
Operating Income (Loss)	515,911		476,334
Interest Expense, Net (includes Interest Income of $3,819 and $3,698 for the six months ended<br><br>June 30, 2022 and 2021, respectively)	229,499		209,642
Other Expense (Income), Net	14,684		(181,517)
Net Income (Loss) Before Provision (Benefit) for Income Taxes	271,728		448,209
Provision (Benefit) for Income Taxes	28,163		125,056
Net Income (Loss)	243,565		323,153
Less: Net Income (Loss) Attributable to Noncontrolling Interests	1,185		2,265
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	242,380	$	320,888
Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated:
Basic	$	0.83	$	1.11
Diluted	$	0.83	$	1.11
Weighted Average Common Shares Outstanding—Basic	290,542		289,001
Weighted Average Common Shares Outstanding—Diluted	292,166		290,303

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

IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	4

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Part I. Financial Information

IRON MOUNTAIN INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(IN THOUSANDS) (UNAUDITED)

	THREE MONTHS ENDED JUNE 30,
	2022		2021
Net Income (Loss)	$	201,858	$	276,522
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustment	(187,786)		42,543
Change in Fair Value of Derivative Instruments	34,211		5,634
Total Other Comprehensive (Loss) Income:	(153,575)		48,177
Comprehensive Income (Loss)	48,283		324,699
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	819		1,156
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$	47,464	$	323,543			SIX MONTHS ENDED JUNE 30,
---	---	---	---	---
	2022		2021
Net Income (Loss)	$	243,565	$	323,153
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustment	(160,333)		(23,812)
Change in Fair Value of Derivative Instruments	50,977		20,840
Total Other Comprehensive (Loss) Income	(109,356)		(2,972)
Comprehensive Income (Loss)	134,209		320,181
Comprehensive Income (Loss) Attributable to Noncontrolling Interests	457		2,053
Comprehensive Income (Loss) Attributable to Iron Mountain Incorporated	$	133,752	$	318,128

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

IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	5

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Part I. Financial Information

IRON MOUNTAIN INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(IN THOUSANDS, EXCEPT SHARE DATA) (UNAUDITED)

THREE MONTHS ENDED JUNE 30, 2022
			IRON MOUNTAIN INCORPORATED STOCKHOLDERS' EQUITY
			COMMON STOCK			ADDITIONAL<br>PAID-IN<br>CAPITAL		(DISTRIBUTIONS<br>IN EXCESS OF<br>EARNINGS) EARNINGS IN<br>EXCESS OF<br>DISTRIBUTIONS		ACCUMULATED<br>OTHER<br>COMPREHENSIVE<br>ITEMS, NET		NONCONTROLLING<br><br>INTERESTS		REDEEMABLE<br>NONCONTROLLING<br>INTERESTS
	TOTAL		SHARES	AMOUNTS
Balance, March 31, 2022	$	758,771	290,550,440	$	2,906	$	4,409,051	$	(3,359,876)	$	(294,358)	$	1,048	$	73,428
Issuance and net settlement of shares under employee stock purchase plan and option plans and stock-based compensation	24,462		129,518	1		24,461		—		—		—		—
Changes in equity related to noncontrolling interests	4,618		—	—		983		—		—		3,635		(983)
Parent cash dividends declared	(181,197)		—	—		—		(181,197)		—		—		—
Foreign currency translation adjustment	(186,919)		—	—		—		—		(186,828)		(91)		(867)
Change in fair value of derivative instruments	34,211		—	—		—		—		34,211		—		—
Net income (loss)	200,315		—	—		—		200,081		—		234		1,543
Noncontrolling interests equity contributions and related costs	(2,486)		—	—		(2,486)		—		—		—		21,547
Noncontrolling interests dividends	—		—	—		—		—		—		—		(711)
Balance, June 30, 2022	$	651,775	290,679,958	$	2,907	$	4,432,009	$	(3,340,992)	$	(446,975)	$	4,826	$	93,957
SIX MONTHS ENDED JUNE 30, 2022
			IRON MOUNTAIN INCORPORATED STOCKHOLDERS' EQUITY
			COMMON STOCK			ADDITIONAL<br>PAID-IN<br>CAPITAL		(DISTRIBUTIONS<br>IN EXCESS OF<br>EARNINGS) EARNINGS IN<br>EXCESS OF<br>DISTRIBUTIONS		ACCUMULATED<br>OTHER<br>COMPREHENSIVE<br>ITEMS, NET		NONCONTROLLING<br>INTERESTS		REDEEMABLE<br>NONCONTROLLING<br>INTERESTS
	TOTAL		SHARES	AMOUNTS
Balance, December 31, 2021	$	857,068	289,757,061	$	2,898	$	4,412,553	$	(3,221,152)	$	(338,347)	$	1,116	$	72,411
Issuance and net settlement of shares under employee stock purchase plan and option plans and stock-based compensation	22,960		922,897	9		22,951		—		—		—		—
Changes in equity related to noncontrolling interests	2,626		—	—		(1,009)		—		—		3,635		1,009
Parent cash dividends declared	(362,220)		—	—		—		(362,220)		—		—		—
Foreign currency translation adjustment	(159,764)		—	—		—		—		(159,605)		(159)		(569)
Change in fair value of derivative instruments	50,977		—	—		—		—		50,977		—		—
Net income (loss)	242,614		—	—		—		242,380		—		234		951
Noncontrolling interests equity contributions and related costs	(2,486)		—	—		(2,486)		—		—		—		21,547
Noncontrolling interests dividends	—		—	—		—		—		—		—		(1,392)
Balance, June 30, 2022	$	651,775	290,679,958	$	2,907	$	4,432,009	$	(3,340,992)	$	(446,975)	$	4,826	$	93,957

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

IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	6

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Part I. Financial Information

IRON MOUNTAIN INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(IN THOUSANDS, EXCEPT SHARE DATA) (UNAUDITED)

THREE MONTHS ENDED JUNE 30, 2021
			IRON MOUNTAIN INCORPORATED STOCKHOLDERS' EQUITY
			COMMON STOCK			ADDITIONAL<br>PAID-IN<br>CAPITAL		(DISTRIBUTIONS<br>IN EXCESS OF<br>EARNINGS) EARNINGS IN<br>EXCESS OF<br>DISTRIBUTIONS		ACCUMULATED<br>OTHER<br>COMPREHENSIVE<br>ITEMS, NET		REDEEMABLE<br>NONCONTROLLING<br>INTERESTS
	TOTAL		SHARES	AMOUNTS
Balance, March 31, 2021	$	959,707	288,727,747	$	2,888	$	4,347,151	$	(3,083,421)	$	(306,911)	$	61,601
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation	45,252		731,021	7		45,245		—		—		—
Parent cash dividends declared	(180,760)		—	—		—		(180,760)		—		—
Foreign currency translation adjustment	42,624		—	—		—		—		42,624		(81)
Change in fair value of derivative instruments	5,634		—	—		—		—		5,634		—
Net income (loss)	275,285		—	—		—		275,285		—		1,237
Noncontrolling interests dividends	—		—	—		—		—		—		(664)
Purchase of noncontrolling interests	—		—	—		—		—		—		2,567
Balance, June 30, 2021	$	1,147,742	289,458,768	$	2,895	$	4,392,396	$	(2,988,896)	$	(258,653)	$	64,660
SIX MONTHS ENDED JUNE 30, 2021
			IRON MOUNTAIN INCORPORATED STOCKHOLDERS' EQUITY
			COMMON STOCK			ADDITIONAL<br>PAID-IN<br>CAPITAL		(DISTRIBUTIONS<br>IN EXCESS OF<br>EARNINGS) EARNINGS IN<br>EXCESS OF<br>DISTRIBUTIONS		ACCUMULATED<br>OTHER<br>COMPREHENSIVE<br>ITEMS, NET		REDEEMABLE<br>NONCONTROLLING<br>INTERESTS
	TOTAL		SHARES	AMOUNTS
Balance, December 31, 2020	$	1,136,729	288,273,049	$	2,883	$	4,340,078	$	(2,950,339)	$	(255,893)	$	59,805
Issuance of shares under employee stock purchase plan and option plans and stock-based compensation	51,650		1,185,719	12		51,638		—		—		—
Change in equity related to redeemable noncontrolling interests	680		—	—		680		—		—		(680)
Parent cash dividends declared	(359,445)		—	—		—		(359,445)		—		—
Foreign currency translation adjustment	(23,600)		—	—		—		—		(23,600)		(212)
Change in fair value of derivative instruments	20,840		—	—		—		—		20,840		—
Net income (loss)	320,888		—	—		—		320,888		—		2,265
Noncontrolling interests equity contributions	—		—	—		—		—		—		2,200
Noncontrolling interests dividends	—		—	—		—		—		—		(1,285)
Purchase of noncontrolling interests	—		—	—		—		—		—		2,567
Balance, June 30, 2021	$	1,147,742	289,458,768	$	2,895	$	4,392,396	$	(2,988,896)	$	(258,653)	$	64,660

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

IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	7

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Part I. Financial Information

IRON MOUNTAIN INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS) (UNAUDITED)

	SIX MONTHS ENDED JUNE 30,
	2022		2021
Cash Flows from Operating Activities:
Net income (loss)	$	243,565	$	323,153
Adjustments to reconcile net income (loss) to cash flows from operating activities:
Depreciation	236,496		226,939
Amortization (includes amortization of deferred financing costs and discounts of $9,064 and $8,443 for the six months ended June 30, 2022 and 2021, respectively)	134,437		113,831
Revenue reduction associated with amortization of customer inducements and above- and below-market leases	3,681		4,327
Stock-based compensation expense	31,597		33,652
(Benefit) provision for deferred income taxes	(18,491)		30,899
Loss on early extinguishment of debt	671		—
Gain on IPM divestment	—		(181,196)
(Gain) loss on disposal/write-down of property, plant and equipment, net	(51,954)		(133,386)
Loss associated with OSG deconsolidation	105,825		—
Gain associated with Clutter Transaction	(35,821)		—
Foreign currency transactions and other, net	(58,821)		2,727
(Increase) decrease in assets	(194,756)		(83,975)
(Decrease) increase in liabilities	(50,505)		52,231
Cash Flows from Operating Activities	345,924		389,202
Cash Flows from Investing Activities:
Capital expenditures	(330,220)		(295,586)
Cash paid for acquisitions, net of cash acquired	(718,657)		(35,723)
Acquisition of customer relationships	(148)		(3,641)
Customer inducements	(4,624)		(3,818)
Contract fulfillment costs	(33,951)		(29,023)
Investments in joint ventures and other investments	—		(63,135)
Net proceeds from IPM Divestment	—		213,878
Proceeds from sales of property and equipment and other, net	96,497		209,697
Cash Flows from Investing Activities	(991,103)		(7,351)
Cash Flows from Financing Activities:
Repayment of revolving credit facility, term loan facilities and other debt	(5,351,720)		(1,620,167)
Proceeds from revolving credit facility, term loan facilities and other debt	6,255,829		1,763,597
Debt financing and equity contribution from noncontrolling interests	21,547		—
Debt repayment and equity distribution to noncontrolling interests	(1,392)		(1,285)
Repurchase of noncontrolling interest	—		(75,000)
Parent cash dividends	(364,223)		(359,824)
Net (payments) proceeds associated with employee stock-based awards	(8,636)		17,998
Other, net	(9,405)		3,742
Cash Flows from Financing Activities	542,000		(270,939)
Effect of Exchange Rates on Cash and Cash Equivalents	(7,903)		(47)
(Decrease) increase in Cash and Cash Equivalents	(111,082)		110,865
Cash and Cash Equivalents, Beginning of Period	255,828		205,063
Cash and Cash Equivalents, End of Period	$	144,746	$	315,928
Supplemental Information:
Cash Paid for Interest	$	227,633	$	217,687
Cash Paid for Income Taxes, Net	$	57,135	$	45,246
Non-Cash Investing and Financing Activities:
Financing Leases	$	12,878	$	13,775
Accrued Capital Expenditures	$	98,210	$	45,665
Deferred Purchase Obligation and Other	$	276,017	$	—
Dividends Payable	$	188,556	$	187,488

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

IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	8

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Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share and per share data) (Unaudited)

1. GENERAL

The unaudited condensed consolidated financial statements of Iron Mountain Incorporated, a Delaware corporation ("IMI"), and its subsidiaries ("we" or "us"), have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the "SEC"). Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been omitted pursuant to those rules and regulations, but we believe that the disclosures included herein are adequate to make the information presented not misleading. The interim condensed consolidated financial statements are presented herein and, in the opinion of management, reflect all adjustments of a normal recurring nature necessary for a fair presentation. Interim results are not necessarily indicative of results for a full year.

The Condensed Consolidated Financial Statements and Notes thereto, which are included herein, should be read in conjunction with the Consolidated Financial Statements and Notes thereto for the year ended December 31, 2021 included in our Annual Report on Form 10-K filed with the SEC on February 24, 2022 (our "Annual Report").

We have been organized and have operated as a real estate investment trust for United States federal income tax purposes ("REIT") beginning with our taxable year ended December 31, 2014.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. CASH AND CASH EQUIVALENTS

Cash and cash equivalents include cash on hand and cash invested in highly liquid short-term securities, which have remaining maturities at the date of purchase of less than 90 days. Cash and cash equivalents are carried at cost, which approximates fair value.

B. ACCOUNTS RECEIVABLE

We maintain an allowance for doubtful accounts and a credit memo reserve for estimated losses resulting from the potential inability of our customers to make required payments and potential disputes regarding billing and service issues. The rollforward of the allowance for doubtful accounts and credit memo reserves for the six months ended June 30, 2022 is as follows:

Balance as of December 31, 2021	$	62,009
Credit memos charged to revenue	26,091
Allowance for bad debts charged to expense	9,010
Deductions and other(1)	(41,395)
Balance as of June 30, 2022	$	55,715

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

IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	9

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Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

C. INVENTORY

Inventories are stated at the lower of cost or net realizable value, based on a first-in, first-out methodology. Our inventory primarily consists of information technology-related assets including memory, central processing units, hard drives, adaptors and networking. All of our inventory is considered finished goods. Inventory is included as a component of Prepaid expenses and other in our Condensed Consolidated Balance Sheets. At June 30, 2022, we have inventory of approximately $22,400, net of related reserves for obsolete, excess and slow-moving inventory, which was acquired as part of the ITRenew Transaction (as defined in Note 3). We had no inventory as of December 31, 2021.

D. LEASES

We lease facilities for certain warehouses, data centers and office space. We also have land leases, including those on which certain facilities are located. Operating and financing lease right-of-use assets and lease liabilities as of June 30, 2022 and December 31, 2021 are as follows:

DESCRIPTION	JUNE 30, 2022		DECEMBER 31, 2021
Assets:
Operating lease right-of-use assets	$	2,512,377	$	2,314,422
Financing lease right-of-use assets, net of accumulated depreciation(1)	261,762		298,049
Liabilities:
Current
Operating lease liabilities	$	262,044	$	259,597
Financing lease liabilities(1)	36,377		41,168
Long-term
Operating lease liabilities	$	2,371,270	$	2,171,472
Financing lease liabilities(1)	286,548		315,561

(1)Financing lease right-of-use assets, current financing lease liabilities and long-term financing lease liabilities are included within Property, Plant and Equipment, Net, Current portion of long-term debt and Long-term Debt, net of current portion, respectively, within our Condensed Consolidated Balance Sheets.

The components of the lease expense for the three and six months ended June 30, 2022 and 2021 are as follows:

	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
DESCRIPTION	2022		2021		2022		2021
Operating lease cost(1)	$	139,863	$	135,086	$	283,393	$	267,761
Financing lease cost:
Depreciation of financing lease right-of-use assets	$	10,578	$	12,408	$	22,032	$	25,056
Interest expense for financing lease liabilities	4,359		4,910		9,037		9,885

(1)Operating lease cost, the majority of which is included in Cost of sales, includes variable lease costs of $28,788 and $59,296 for the three and six months ended June 30, 2022, respectively, and $29,219 and $57,587 for the three and six months ended June 30, 2021, respectively.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Other information: Supplemental cash flow information relating to our leases for the six months ended June 30, 2022 and 2021 is as follows:

	SIX MONTHS ENDED JUNE 30,
CASH PAID FOR AMOUNTS INCLUDED IN MEASUREMENT OF LEASE LIABILITIES:	2022		2021
Operating cash flows used in operating leases	$	200,958	$	192,039
Operating cash flows used in financing leases (interest)	9,037		9,885
Financing cash flows used in financing leases	20,084		23,656
NON-CASH ITEMS:
Operating lease modifications and reassessments	$	67,699	$	63,047
New operating leases (including acquisitions and sale-leaseback transactions)	382,890		210,881			IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	11
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

E. GOODWILL

Our reporting units as of December 31, 2021 are described in detail in Note 2.k. to Notes to Consolidated Financial Statements included in our Annual Report. During the second quarter of 2022, as a result of the realignment of our global managerial structure, we reassessed the composition of our reportable segments (see Note 9 for a description and definition of our reportable segments) as well as our reporting units.

We note the following changes to our reporting units as a result of the reassessment described above:

•our former Europe RIM reporting unit is now managed as two separate reporting units: (1) our Middle East, North Africa and Turkey ("MENAT") businesses will comprise our "MENAT RIM" reporting unit and (2) our other businesses in Europe and South Africa ("ESA") will comprise our “ESA RIM” reporting unit;<br><br>•our former ANZ RIM and Asia RIM reporting units are now managed as one "APAC RIM" reporting unit; and<br><br>•our asset lifecycle management ("ALM") business, which includes our legacy secure IT asset disposition business (which was primarily previously included in our North America RIM reporting unit) and the business acquired through our acquisition of Intercept Parent, Inc. ("ITRenew"), will comprise our newly formed "ALM" reporting unit.

There were no changes to our Latin America RIM, Global Data Center and Fine Arts reporting units. We have reassigned goodwill associated with the reporting units impacted by the reorganization on a relative fair value basis, where appropriate. The fair value of each of our new reporting units was determined based on the application of a combined weighted average approach of preliminary fair value multiples of revenue and earnings and discounted cash flow techniques. These fair values represent our best estimate and preliminary assessment of goodwill allocations to each of the new reporting units on a relative fair value basis. We have completed an interim goodwill impairment analysis before and after the reporting unit changes, and we have concluded that the goodwill associated with each of our reporting units was not impaired.

The goodwill associated with acquisitions completed during the six months of 2022 (as described in Note 3) has been incorporated into our current reporting units.

The changes in the carrying value of goodwill attributable to each reportable segment for the six months ended June 30, 2022 are as follows:

	GLOBAL RIM BUSINESS		GLOBAL DATA CENTER BUSINESS		CORPORATE AND OTHER BUSINESS		TOTAL CONSOLIDATED
Goodwill balance, net of accumulated amortization as of December 31, 2021	$	3,976,261	$	426,074	$	61,196	$	4,463,531
Non-tax deductible goodwill acquired during the period	696		—		581,195		581,891
Goodwill reallocation due to the change in reportable segments(1)	(3,409)		—		3,409		—
Fair value and other adjustments(2)	(12,247)		—		384		(11,863)
Currency effects	(97,746)		(10,569)		(1,553)		(109,868)
Goodwill balance, net of accumulated amortization as of June 30, 2022	$	3,863,555	$	415,505	$	644,631	$	4,923,691
Accumulated goodwill impairment balance as of June 30, 2022	$	132,409	$	—	$	26,011	$	158,420

(1)For additional information regarding the changes that were made to our reportable segments in the second quarter of 2022, see Note 9.

(2)This amount represents an adjustment to goodwill as a result of the deconsolidation of certain businesses, as described in Note 2.l.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

F. FAIR VALUE MEASUREMENTS

The assets and liabilities carried at fair value measured on a recurring basis as of June 30, 2022 and December 31, 2021 are as follows:

			FAIR VALUE MEASUREMENTS AT JUNE 30, 2022 USING
DESCRIPTION	TOTAL CARRYING<br>VALUE AT<br>JUNE 30, 2022		QUOTED PRICES IN <br>ACTIVE MARKETS<br>(LEVEL 1)		SIGNIFICANT OTHER<br>OBSERVABLE INPUTS<br>(LEVEL 2)		SIGNIFICANT<br>UNOBSERVABLE<br>INPUTS (LEVEL 3)
Money Market Funds	$	7,164	$	—	$	7,164	$	—
Time Deposits	1,397		—		1,397		—
Trading Securities	10,597		10,531		66		—
Derivative Assets	53,654		—		53,654		—
Deferred Purchase Obligation (as defined in Note 3)	275,100		—		—		275,100						FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2021 USING
---	---	---	---	---	---	---	---	---
DESCRIPTION	TOTAL CARRYING<br>VALUE AT<br>DECEMBER 31, 2021		QUOTED PRICES IN<br>ACTIVE MARKETS<br>(LEVEL 1)		SIGNIFICANT OTHER<br>OBSERVABLE INPUTS<br>(LEVEL 2)		SIGNIFICANT<br>UNOBSERVABLE<br>INPUTS (LEVEL 3)
Money Market Funds	$	101,022	$	—	$	101,022	$	—
Time Deposits	2,238		—		2,238		—
Trading Securities	11,147		11,062		85		—
Derivative Assets	11,021		—		11,021		—
Derivative Liabilities	8,344		—		8,344		—

There were no material items that are measured at fair value on a non-recurring basis at June 30, 2022 and December 31, 2021, other than (i) those disclosed in Note 2.o. to Notes to Consolidated Financial Statements included in our Annual Report, (ii) assets acquired and liabilities assumed through the ITRenew Transaction (as defined and described in Note 3), (iii) our investment in the Clutter JV (as defined in Note 4), and (iv) the fair value of our retained investment of our deconsolidated businesses (as described in Note 2.l.), all of which are based on Level 3 inputs. The fair value of the Deferred Purchase Obligation associated with the ITRenew Transaction was determined utilizing a Monte-Carlo model and takes into account our forecasted projections as it relates to the underlying performance of the business. There were no significant changes to the inputs to the model as of June 30, 2022.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

G. ACCUMULATED OTHER COMPREHENSIVE ITEMS, NET

The changes in accumulated other comprehensive items, net for the three and six months ended June 30, 2022 and 2021 are as follows:

	THREE MONTHS ENDED JUNE 30, 2022						THREE MONTHS ENDED JUNE 30, 2021
	FOREIGN<br>CURRENCY<br>TRANSLATION AND OTHER<br>ADJUSTMENTS		CHANGE IN FAIR VALUE OF<br>DERIVATIVE<br>INSTRUMENTS		TOTAL		FOREIGN<br>CURRENCY<br>TRANSLATION AND OTHER<br>ADJUSTMENTS		CHANGE IN FAIR VALUE OF<br>DERIVATIVE<br>INSTRUMENTS		TOTAL
Beginning of Period	$	(313,801)	$	19,443	$	(294,358)	$	(272,414)	$	(34,497)	$	(306,911)
Other comprehensive (loss) income:
Foreign currency translation and other adjustments	(186,828)		—		(186,828)		42,624		—		42,624
Change in fair value of derivative instruments	—		34,211		34,211		—		5,634		5,634
Total other comprehensive (loss) income	(186,828)		34,211		(152,617)		42,624		5,634		48,258
End of Period	$	(500,629)	$	53,654	$	(446,975)	$	(229,790)	$	(28,863)	$	(258,653)
	SIX MONTHS ENDED JUNE 30, 2022						SIX MONTHS ENDED JUNE 30, 2021
---	---	---	---	---	---	---	---	---	---	---	---	---
	FOREIGN<br>CURRENCY<br>TRANSLATION AND OTHER<br>ADJUSTMENTS		CHANGE IN FAIR VALUE OF<br>DERIVATIVE<br>INSTRUMENTS		TOTAL		FOREIGN<br>CURRENCY<br>TRANSLATION AND OTHER<br>ADJUSTMENTS		CHANGE IN FAIR VALUE OF<br>DERIVATIVE<br>INSTRUMENTS		TOTAL
Beginning of Period	$	(341,024)	$	2,677	$	(338,347)	$	(206,190)	$	(49,703)	$	(255,893)
Other comprehensive (loss) income:
Foreign currency translation and other adjustments	(159,605)		—		(159,605)		(23,600)		—		(23,600)
Change in fair value of derivative instruments	—		50,977		50,977		—		20,840		20,840
Total other comprehensive (loss) income	(159,605)		50,977		(108,628)		(23,600)		20,840		(2,760)
End of Period	$	(500,629)	$	53,654	$	(446,975)	$	(229,790)	$	(28,863)	$	(258,653)

H. REVENUES

The costs associated with the initial movement of customer records into physical storage and certain commissions are considered costs to obtain or fulfill customer contracts (collectively, "Contract Fulfillment Costs"). Contract Fulfillment Costs as of June 30, 2022 and December 31, 2021 are as follows:

	JUNE 30, 2022						DECEMBER 31, 2021
	GROSS<br>CARRYING<br>AMOUNT		ACCUMULATED<br>AMORTIZATION		NET<br>CARRYING<br>AMOUNT		GROSS<br>CARRYING<br>AMOUNT		ACCUMULATED<br>AMORTIZATION		NET<br>CARRYING<br>AMOUNT
Intake Costs asset	$	67,334	$	(44,086)	$	23,248	$	71,336	$	(42,678)	$	28,658
Commissions asset	130,277		(55,952)		74,325		114,791		(50,553)		64,238			IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	14
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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

DESCRIPTION	LOCATION IN BALANCE SHEET	JUNE 30, 2022		DECEMBER 31, 2021
Deferred revenue - Current	Deferred revenue	$	302,494	$	307,470
Deferred revenue - Long-term	Other Long-term Liabilities	33,308		33,691

DATA CENTER LESSOR CONSIDERATIONS

Our Global Data Center Business features storage rental provided to customers at contractually specified rates over a fixed contractual period, which are accounted for in accordance with Accounting Standards Codification ("ASC") No. 842 ("ASC 842"), Leases, as amended. Storage rental revenue, including revenue associated with power and connectivity, associated with our Global Data Center Business for the three and six months ended June 30, 2022 and 2021 are as follows:

	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
	2022		2021		2022		2021
Storage rental revenue(1)	$	89,768	$	71,237	$	177,219	$	138,394

(1)Revenue associated with power and connectivity included within storage rental revenue was $30,713 and $59,031 for the three and six months ended June 30, 2022, respectively, and $14,561 and $27,694 for the three and six months ended June 30, 2021, respectively.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

I. STOCK-BASED COMPENSATION

Our stock-based compensation expense includes the cost of stock options, restricted stock units ("RSUs"), performance units ("PUs") and shares of stock issued under our employee stock purchase plan ("ESPP") (together, the "Employee Stock-Based Awards").

2022 RETIREMENT ELIGIBLE CRITERIA

For our Employee Stock-Based Awards made on or after March 1, 2022, we have included the following retirement provision:

•Upon an award recipient's retirement on or after attaining age 55 with at least five years of service, if the sum of (i) the award recipient’s age at retirement and (ii) the award recipient’s years of service with us totals at least 65, the award recipient is entitled to continued vesting of any outstanding Employee Stock-Based Awards, provided that their retirement occurs on or after a minimum of six months from the grant date (the "Retirement Criteria").

•Accordingly, (i) grants of Employee Stock-Based Awards to an employee who has met the Retirement Criteria on or before the date of grant, or will meet the Retirement Criteria before the six month anniversary in the year of the grant, will be expensed over six months from the date of grant and (ii) grants of Employee Stock-Based Awards to employees who will meet the Retirement Criteria during the award’s normal vesting period will be expensed between the date of grant and the date upon which the award recipient meets the Retirement Criteria.

•Stock options and RSUs granted to award recipients who meet the Retirement Criteria will be delivered to the award recipient based upon the original vesting schedule. If an award recipient retires and has met the Retirement Criteria, stock options will remain exercisable until the original expiration date of the stock options. PUs granted to award recipients who meet the Retirement Criteria will be delivered in accordance with the original vesting schedule of the applicable PU award and remain subject to the same performance conditions.

STOCK-BASED COMPENSATION EXPENSE

Stock-based compensation expense for the Employee Stock-Based Awards for the three and six months ended June 30, 2022 and 2021 is as follows:

	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
	2022		2021		2022		2021
Stock-based compensation expense	$	20,256	$	22,699	$	31,597	$	33,652

As of June 30, 2022, unrecognized compensation cost related to the unvested portion of our Employee Stock-Based Awards is $69,595.

RESTRICTED STOCK UNITS AND PERFORMANCE UNITS

The fair value of RSUs and earned PUs that vested during the three and six months ended June 30, 2022 and 2021 is as follows:

	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
	2022		2021		2022		2021
Fair value of RSUs vested	$	3,144	$	3,118	$	21,559	$	22,979
Fair value of earned PUs that vested	—		235		4,346		5,826			IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	16
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

J. ACQUISITION AND INTEGRATION COSTS

Acquisition and integration costs represent operating expenditures directly associated with the closing and integration activities of our business acquisitions that have closed, or are highly probable of closing, and include (i) advisory, legal and professional fees to complete business acquisitions and (ii) costs to integrate acquired businesses into our existing operations, including move, severance, facility upgrade and system integration costs (collectively, "Acquisition and Integration Costs"). Acquisition and Integration Costs do not include costs associated with the formation of joint ventures or costs associated with the acquisition of customer relationships. Total Acquisition and Integration Costs is $16,878 and $32,539 for the three and six months ended June 30, 2022, respectively, and $2,277 for both the three and six months ended June 30, 2021.

K. (GAIN) LOSS ON DISPOSAL/WRITE-DOWN OF PROPERTY, PLANT AND EQUIPMENT, NET

Consolidated (gain) loss on disposal/write-down of property, plant and equipment, net for the three and six months ended June 30, 2022 and 2021 is as follows:

	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
	2022(1)		2021(2)		2022(1)		2021(2)
(Gain) Loss on disposal/write-down of property, plant and equipment, net	$	(51,249)	$	(128,935)	$	(51,954)	$	(133,386)

(1) The gains for the three and six months ended June 30, 2022 primarily consisted of gains of approximately $49,000 associated with the sale and sale-leaseback transactions of 11 facilities and parcels of land in the United States, as part of our program to monetize a portion of our industrial assets. The terms for these leases are consistent with the terms of our lease portfolio, which are disclosed in detail in Note 2.i. to Notes to Consolidated Financial Statements included in our Annual Report.

(2)    The gains for the three and six months ended June 30, 2021 primarily consisted of gains of approximately $127,400 associated with the sale-leaseback transactions of five facilities in the United Kingdom, as part of our program to monetize a small portion of our industrial assets. The terms for these leases are consistent with the terms of our lease portfolio, which are disclosed in detail in Note 2.i. to Notes to Consolidated Financial Statements included in our Annual Report.

L. OTHER (INCOME) EXPENSE, NET

Consolidated other (income) expense, net for the three and six months ended June 30, 2022 and 2021 consists of the following:

	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
DESCRIPTION	2022		2021		2022		2021
Foreign currency transaction (gains) losses, net(1)	$	(55,039)	$	4,729	$	(68,240)	$	7,043
Debt extinguishment expense	—		—		671		—
Other, net(2)(3)	13,822		(190,959)		82,253		(188,560)
Other (Income) Expense, Net	$	(41,217)	$	(186,230)	$	14,684	$	(181,517)

(1)We recognized net foreign currency transaction gains of $55,039 and $68,240 for the three and six months ended June 30, 2022, respectively. These gains primarily consist of the impact of changes in the exchange rate of the Euro and the British pound sterling against the United States dollar on our intercompany balances with and between certain of our subsidiaries.

(2)On March 24, 2022, as a result of our loss of control, we deconsolidated the businesses included in the acquisition of OSG Records Management (Europe) Limited, excluding Ukraine. We recognized a loss of approximately $105,800 associated with the deconsolidation to Other expense (income), net in the first quarter of 2022 representing the difference between the net asset value prior to the deconsolidation and subsequent remeasurement of the retained investment to fair value of zero. We have concluded that the deconsolidation does not meet the criteria to be reported as discontinued operations in our consolidated financial statements, as it does not represent a strategic shift that will have a major effect on our operations and financial results. The loss was partially offset by a gain recorded in the first quarter of 2022 of approximately $35,800 associated with the Clutter Transaction (as defined in Note 4).

(3)Other, net for the three and six months ended June 30, 2021 is primarily comprised of (a) a gain of approximately $181,200 associated with our IPM Divestment (as defined and discussed in Note 4 to Notes to Consolidated Financial Statements included in our Annual Report) and (b) a gain of approximately $20,300 associated with the loss of control and related deconsolidation, as of May 18, 2021 of one of our wholly owned Netherlands subsidiaries, for which we had value-added tax liability exposure that was recorded in 2019.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

M. INCOME TAXES

We provide for income taxes during interim periods based on our estimate of the effective tax rate for the year.

Our effective tax rates for the three and six months ended June 30, 2022 and 2021 are as follows:

	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
	2022(1)		2021(2)		2022(1)		2021(2)
Effective Tax Rate	8.2	%	28.5	%	10.4	%	27.9	%

(1)The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three and six months ended June 30, 2022 were the benefits derived from the dividends paid deduction and the differences in the tax rates to which our foreign earnings are subject. In addition, there were gains and losses recorded in Other expense (income), net and Gain (loss) on disposal/write-down of property, plant and equipment net, during the period for which there was an insignificant tax impact. During the first quarter of 2022, there was also a release of valuation allowances on deferred tax assets of our U.S. taxable REIT subsidiaries ("TRS") of approximately $9,900 as a result of the ITRenew Transaction.

(2)The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three and six months ended June 30, 2021 were the impacts of differences in the tax rates at which our foreign earnings are subject and a discrete tax expense of approximately $12,000 primarily resulting from a tax law change in the United Kingdom, partially offset by the benefits derived from the dividends paid deduction.

N. INCOME (LOSS) PER SHARE—BASIC AND DILUTED

The calculation of basic and diluted income (loss) per share for the three and six months ended June 30, 2022 and 2021 are as follows:

	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
	2022		2021		2022		2021
Net Income (Loss)	$	201,858	$	276,522	$	243,565	$	323,153
Less: Net Income (Loss) Attributable to Noncontrolling Interests	1,777		1,237		1,185		2,265
Net Income (Loss) Attributable to Iron Mountain Incorporated (utilized in numerator of Earnings Per Share calculation)	$	200,081	$	275,285	$	242,380	$	320,888
Weighted-average shares—basic	290,756,000		289,247,000		290,542,000		289,001,000
Effect of dilutive potential stock options	1,249,262		641,888		1,122,444		349,163
Effect of dilutive potential RSUs and PUs	481,972		1,190,357		501,975		953,104
Weighted-average shares—diluted	292,487,234		291,079,245		292,166,419		290,303,267
Net Income (Loss) Per Share Attributable to Iron Mountain Incorporated:
Basic	$	0.69	$	0.95	$	0.83	$	1.11
Diluted	$	0.68	$	0.95	$	0.83	$	1.11
Antidilutive stock options, RSUs and PUs, excluded from the calculation	234,085		381,900		494,833		2,544,984			IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	18
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

3. ACQUISITIONS

On January 25, 2022, in order to expand our ALM operations, we acquired an approximately 80% interest in ITRenew at an agreed upon purchase price of $725,000, subject to certain working capital adjustments at, and subsequent to, the closing (the "ITRenew Transaction"). At closing, we paid $748,846 and acquired $30,720 of cash on hand, for a net purchase price of $718,126 for the ITRenew Transaction. The acquisition agreement provides us the option to purchase, and provides the shareholders of ITRenew the option to sell, the remaining approximately 20% interest in ITRenew as follows: (i) approximately 16% on or after the second anniversary of the ITRenew Transaction and (ii) approximately 4% on or after the third anniversary of the ITRenew Transaction (collectively, the "Remaining Interests"). The total payments for the Remaining Interests, based on the achievement of certain targeted performance metrics, will be no less than $200,000 and no more than $531,000 (the "Deferred Purchase Obligation"). The maximum amount of the Deferred Purchase Obligation would require achievement of the targeted performance metrics at approximately two times the level that is assumed in our current fair value estimate of the Deferred Purchase Obligation of $275,100. From January 25, 2022, we consolidate 100% of the revenues and expenses associated with this business. The Deferred Purchase Obligation is reflected as a long-term liability in our Condensed Consolidated Balance Sheet at June 30, 2022, and, accordingly, we have not reflected any non-controlling interests associated with the ITRenew Transaction as the Remaining Interests have non-substantive equity interest rights. Subsequent increases or decreases in the fair value estimate of the Deferred Purchase Obligation will be included as a component of Other expense (income), net in our Consolidated Statements of Operations until the Deferred Purchase Obligation is settled or paid. ITRenew is presented in Corporate and Other Business (as disclosed in Note 9) and primarily operates in the United States.

PRO FORMA FINANCIAL INFORMATION

The unaudited consolidated pro forma financial information (the "Pro Forma Financial Information") below summarizes the combined results of Iron Mountain and ITRenew on a pro forma basis as if the ITRenew Transaction had occurred on January 1, 2021. The Pro Forma Financial Information is presented for informational purposes and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place on January 1, 2021. The Pro Forma Financial Information, for the periods presented, includes purchase accounting adjustments (including amortization of acquired customer and supplier intangible assets and depreciation of acquired property, plant and equipment) and related tax effects. Through June 30, 2022, we and ITRenew collectively incurred $59,370 of operating expenditures to complete the ITRenew Transaction (including advisory and professional fees required to complete the ITRenew Transaction). These operating expenditures have been reflected within the results of operations in the Pro Forma Financial Information as if they were incurred on January 1, 2021.

	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
	2022		2021		2022		2021
Total Revenues	$	1,289,534	$	1,239,034	$	2,555,554	$	2,441,010
Income from Continuing Operations	$	201,858	$	275,988	$	243,696	$	270,605

In addition to our acquisition of ITRenew, we completed one additional acquisition during the first six months of 2022. The Pro Forma Financial Information does not reflect this acquisition due to the insignificant impact of the acquisition on our consolidated results of operations.

IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	19

Table of Contents

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

3. ACQUISITIONS (CONTINUED)

PRELIMINARY PURCHASE PRICE ALLOCATION

A summary of the cumulative consideration paid and the preliminary allocation of the purchase price paid for all of our 2022 acquisitions through June 30, 2022 is as follows:

	SIX MONTHS ENDED<br><br>JUNE 30, 2022
Cash Paid (gross of cash acquired)(1)	$	749,596
Deferred Purchase Obligation and Other(2)	276,017
Total Consideration	1,025,613
Fair Value of Identifiable Assets Acquired and Liabilities Assumed:
Cash	30,720
Accounts Receivable, Prepaid Expenses and Other Assets	71,838
Property, Plant and Equipment	7,600
Customer and Supplier Relationship Intangible Assets(3)	488,080
Other Intangible Assets(3)	47,300
Operating Lease Right-of-Use Assets	30,395
Accounts Payable, Accrued Expenses and Other Liabilities	(60,256)
Operating Lease Liabilities	(30,395)
Deferred Income Taxes	(141,560)
Total Fair Value of Identifiable Net Assets Acquired	443,722
Goodwill Initially Recorded(4)	$	581,891

(1)Cash paid for acquisitions, net of cash acquired in our Condensed Consolidated Statement of Cash Flows includes contingent and other payments received of $219 for the six months ended June 30, 2022 related to acquisitions made in the years prior to 2022.

(2)At June 30, 2022, we included approximately $275,100 in Other long-term liabilities related to the fair value estimate of the Deferred Purchase Obligation for the Remaining Interests. Deferred Purchase Obligation and Other also includes $917 of purchase price associated with the acquisition of a records and information management business completed in 2022.

(3)The preliminary weighted average life of the intangible assets acquired in the ITRenew Transaction is approximately 11 years. Intangible assets are included as a component of Other assets, net in our Condensed Consolidated Balance Sheets.

(4)Goodwill is primarily attributable to the assembled workforce, expanded market opportunities and costs and other operating synergies anticipated upon the integration of the operations of us and the acquired businesses.

The preliminary purchase price allocations that are not finalized as of June 30, 2022 relate to the final assessment of the fair values of intangible assets (primarily customer and supplier relationship intangible assets) and property, plant and equipment associated with the acquisitions we closed in 2022. Any adjustments to our estimates of purchase price allocation will be made in the periods in which the adjustments are determined, but no later than the one year measurement period, and the cumulative effect of such adjustments will be calculated as if the adjustments had been completed as of the acquisition dates. Adjustments recorded during the six months ended June 30, 2022 were not material to our results from operations.

IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	20

Table of Contents

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

4. INVESTMENTS

In February 2022, the joint venture formed by MakeSpace Labs, Inc. and us (the "MakeSpace JV") entered into an agreement with Clutter, Inc. ("Clutter") pursuant to which the equityholders of the MakeSpace JV contributed their ownership interests in the MakeSpace JV and Clutter’s shareholders contributed their ownership interests in Clutter to create a newly formed venture (the "Clutter JV"). In exchange for our 49.99% interest in the MakeSpace JV, we received an approximate 27% interest in the Clutter JV (the "Clutter Transaction"). As a result of the Clutter Transaction, we recognized a gain related to our contributed interest in the MakeSpace JV of approximately $35,800, which was recorded to Other, net, a component of Other expense (income), net during the first quarter of 2022.

The following joint ventures are accounted for as equity method investments and are presented as a component of Other within Other assets, net in our Condensed Consolidated Balance Sheets. The carrying values and equity interests in our joint ventures at June 30, 2022 and December 31, 2021 are as follows:

	JUNE 30, 2022				DECEMBER 31, 2021
	CARRYING VALUE		EQUITY INTEREST		CARRYING VALUE		EQUITY INTEREST
Joint venture with Web Werks India Private Limited	$	51,427	38.50	%	$	51,140	38.50	%
Joint venture with AGC Equity Partners (the "Frankfurt JV")	26,798		20.00	%	26,167		20.00	%
MakeSpace JV	—		—	%	30,154		49.99	%
Clutter JV	60,984		26.73	%	—		—	%

5. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Derivative instruments we are party to include: (i) interest rate swap agreements (which are designated as cash flow hedges) and (ii) cross-currency swap agreements (which are designated as net investment hedges).

INTEREST RATE SWAP AGREEMENTS DESIGNATED AS CASH FLOW HEDGES

In March 2018, we entered into interest rate swap agreements to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness. These swap agreements expired in March 2022. 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. As of June 30, 2022, we had $350,000 in notional value of interest rate swap agreements outstanding, which expire in March 2024. Under the interest rate swap agreements, we receive variable rate interest payments associated with the notional amount of each interest rate swap, based upon one-month LIBOR, in exchange for the payment of fixed interest rates as specified in the interest rate swap agreements.

We have designated these interest rate swap agreements as cash flow hedges. Unrealized gains are recognized as assets, while unrealized losses are recognized as liabilities.

IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	21

Table of Contents

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

5. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (CONTINUED)

CROSS-CURRENCY SWAP AGREEMENTS DESIGNATED AS A HEDGE OF NET INVESTMENT

In August 2019, we entered into cross-currency swap agreements to hedge the variability of exchange rate impacts between the United States dollar and the Euro. Under the terms of the cross-currency swap agreements, we notionally exchanged approximately $110,000 at an interest rate of 6.0% for approximately 99,055 Euros at a weighted average interest rate of approximately 3.65%. These cross-currency swap agreements expire in August 2023 ("August 2023 Cross-Currency Swap Agreements").

In September 2020, we entered into cross-currency swap agreements to hedge the variability of exchange rate impacts between the United States dollar and the Euro. Under the terms of the cross-currency swap agreements, we notionally exchanged approximately $359,200 at an interest rate of 4.5% for 300,000 Euros at a weighted average interest rate of approximately 3.4%. These cross-currency swap agreements were set to expire in February 2026. In May 2022, these cross-currency swaps were amended ("February 2026 Cross-Currency Swap Agreements"). Under the terms of the February 2026 Cross-Currency Swap Agreements, we notionally exchanged approximately $359,200 at an interest rate of 4.5% for approximately 340,500 Euros at a weighted average interest rate of approximately 1.2%. These February 2026 Cross-Currency Swap Agreements are set to expire in February 2026.

We have designated these cross-currency swap agreements as a hedge of net investment against certain of our Euro denominated subsidiaries and they require an exchange of the notional amounts at maturity. These cross-currency swap agreements are marked to market at each reporting period, representing the fair values of the cross-currency swap agreements, and any changes in fair value are recognized as a component of Accumulated other comprehensive items, net. Unrealized gains are recognized as assets while unrealized losses are recognized as liabilities.

Assets (liabilities) recognized in our Condensed Consolidated Balance Sheets at June 30, 2022 and December 31, 2021, by derivative instrument, are as follows:

DERIVATIVE INSTRUMENTS(1)	JUNE 30, 2022		DECEMBER 31, 2021
Cash Flow Hedges(2)
Interest Rate Swap Agreements	$	7,722	$	(7,680)
Net Investment Hedges(3)
August 2023 Cross-Currency Swap Agreements	6,167		(664)
February 2026 Cross-Currency Swap Agreements	39,765		11,021

(1)Our derivative assets are included as a component of Other within Other assets, net in our Condensed Consolidated Balance Sheets and our derivative liabilities are included as a component of (i) Accrued expenses and other current liabilities or (ii) Other long-term liabilities in our Condensed Consolidated Balance Sheets. As of June 30, 2022, $53,654 is included within Other assets. As of December 31, 2021, $11,021 is included within Other assets, $2,082 is included within Accrued expense and other current liabilities and $6,262 is included within Other long-term liabilities.

(2)As of June 30, 2022, cumulative net gains of $7,722 are recorded within Accumulated other comprehensive items, net associated with these interest rate swap agreements.

(3)As of June 30, 2022, cumulative net gains of $45,932 are recorded within Accumulated other comprehensive items, net associated with these cross-currency swap agreements.

Unrealized gains (losses) recognized during the three and six months ended June 30, 2022 and 2021, by derivative instrument, are as follows:

	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
DERIVATIVE INSTRUMENTS(1)	2022		2021		2022		2021
Cash Flow Hedges
Interest Rate Swap Agreements	$	3,932	$	1,795	$	15,402	$	5,996
Net Investment Hedges
August 2023 Cross-Currency Swap Agreements	5,948		(1,473)		6,831		3,278
February 2026 Cross-Currency Swap Agreements	24,331		5,312		28,744		11,566

(1)These amounts are recognized as unrealized gains (losses), a component of Accumulated other comprehensive items, net.

IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	22

Table of Contents

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

6. DEBT

Long-term debt is as follows:

	JUNE 30, 2022								DECEMBER 31, 2021
	DEBT<br><br>(INCLUSIVE OF<br><br>DISCOUNT)		UNAMORTIZED<br><br>DEFERRED<br><br>FINANCING<br><br>COSTS		CARRYING<br><br>AMOUNT		FAIR<br><br>VALUE		DEBT<br><br>(INCLUSIVE OF<br><br>DISCOUNT)		UNAMORTIZED<br><br>DEFERRED<br><br>FINANCING<br><br>COSTS		CARRYING<br><br>AMOUNT		FAIR<br><br>VALUE
Revolving Credit Facility	$	578,000	$	(9,006)	$	568,994	$	578,000	$	—	$	(5,174)	$	(5,174)	$	—
Term Loan A	246,875		—		246,875		246,875		203,125		—		203,125		203,125
Term Loan B	669,460		(4,371)		665,089		670,250		672,847		(4,995)		667,852		675,500
Australian Dollar Term Loan (the "AUD Term Loan")	207,221		(519)		206,702		207,221		223,182		(656)		222,526		223,530
UK Bilateral Revolving Credit Facility (the "UK Bilateral Facility")	170,057		(334)		169,723		170,057		189,168		(709)		188,459		189,168
37/8% GBP Senior Notes due 2025 (the "GBP Notes")	485,875		(3,058)		482,817		436,996		540,481		(3,912)		536,569		542,508
47/8% Senior Notes due 2027 (the "47/8% Notes due 2027")(1)	1,000,000		(7,465)		992,535		895,000		1,000,000		(8,176)		991,824		1,030,000
51/4% Senior Notes due 2028 (the "51/4% Notes due 2028")(1)	825,000		(6,790)		818,210		738,375		825,000		(7,380)		817,620		862,125
5% Senior Notes due 2028 (the "5% Notes due 2028")(1)	500,000		(4,401)		495,599		442,500		500,000		(4,763)		495,237		513,750
47/8% Senior Notes due 2029 (the "47/8% Notes due 2029")(1)	1,000,000		(10,488)		989,512		850,000		1,000,000		(11,211)		988,789		1,022,500
51/4% Senior Notes due 2030 (the "51/4% Notes due 2030")(1)	1,300,000		(12,159)		1,287,841		1,118,000		1,300,000		(12,911)		1,287,089		1,355,250
41/2% Senior Notes due 2031 (the "41/2% Notes")(1)	1,100,000		(10,782)		1,089,218		888,250		1,100,000		(11,404)		1,088,596		1,094,500
5% Senior Notes due 2032 (the "5% Notes due 2032")	750,000		(13,164)		736,836		607,500		750,000		(13,782)		736,218		767,813
55/8% Senior Notes due 2032 (the "55/8% Notes")(1)	600,000		(5,856)		594,144		507,000		600,000		(6,147)		593,853		637,500
Real Estate Mortgages, Financing Lease Liabilities and Other	423,934		(706)		423,228		423,934		460,648		(840)		459,808		460,648
Accounts Receivable Securitization Program	313,200		(607)		312,593		313,200		—		(450)		(450)		—
Total Long-term Debt	10,169,622		(89,706)		10,079,916				9,364,451		(92,510)		9,271,941
Less Current Portion	(86,790)		—		(86,790)				(310,084)		656		(309,428)
Long-term Debt, Net of Current Portion	$	10,082,832	$	(89,706)	$	9,993,126			$	9,054,367	$	(91,854)	$	8,962,513

(1) Collectively, the "Parent Notes".

See Note 7 to Notes to Consolidated Financial Statements included in our Annual Report for additional information regarding our long-term debt, including the direct obligors of each of our debt instruments as well as information regarding the fair value of our debt instruments (including the levels of the fair value hierarchy used to determine the fair value of our debt instruments). The levels of the fair value hierarchy used to determine the fair value of our debt as of June 30, 2022 are consistent with the levels of the fair value hierarchy used to determine the fair value of our debt as of December 31, 2021 (which are disclosed in our Annual Report).

IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	23

Table of Contents

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

6. DEBT (CONTINUED)

CREDIT AGREEMENT

Our credit agreement (the "Credit Agreement") consists of a revolving credit facility (the "Revolving Credit Facility"), a term loan A (the "Term Loan A") and a term loan B (the "Term Loan B"). On March 18, 2022, we entered into an amendment to the Credit Agreement, which included the following changes:

(i) extended the maturity date of the Revolving Credit Facility and Term Loan A from June 3, 2023 to March 18, 2027;

(ii) refinanced and increased the borrowing capacity that IMI and certain of its United States and foreign subsidiaries are able to borrow under the Revolving Credit Facility from $1,750,000 to $2,250,000;

(iii) refinanced the existing Term Loan A with a new $250,000 Term Loan A; and

(iv) increased the net total lease adjusted leverage ratio maximum allowable from 6.5x to 7.0x and removed the net secured lease adjusted leverage ratio requirement.

On March 18, 2022, we borrowed the full amount of the Term Loan A. As of June 30, 2022, we had $578,000, $246,875 and $670,250 of outstanding borrowings under the Revolving Credit Facility, Term Loan A and Term Loan B, respectively. In addition, we also had various outstanding letters of credit totaling $3,831. The remaining amount available for borrowing under the Revolving Credit Facility as of June 30, 2022 was $1,668,169 (which represents the maximum availability as of such date). Additionally, the Credit Agreement permits us to incur incremental indebtedness thereunder by adding new term loans or revolving loans or by increasing the principal amount of any existing loans thereunder, subject to a cap contained therein.

The average interest rate in effect under the Credit Agreement was 3.4% and 1.9% as of June 30, 2022 and December 31, 2021, respectively.

REVOLVING CREDIT FACILITY<br><br>$2,250,000	TERM LOAN A<br><br>$250,000	TERM LOAN B<br><br>$700,000
Outstanding borrowings<br><br>$578,000	Aggregate outstanding principal amount<br><br>$246,875	Aggregate outstanding principal amount<br><br>$670,250
3.4%<br><br>Interest rate	3.4%<br><br>Interest rate	3.5%<br><br>Interest rate
As of June 30, 2022	As of June 30, 2022	As of June 30, 2022		AUSTRALIAN DOLLAR TERM LOAN
---	---
On March 18, 2022, Iron Mountain Australia Group Pty, Ltd. ("IM Australia"), a wholly owned<br><br>subsidiary of IMI, amended its AUD Term Loan to (i) extend the maturity date from September 22,<br><br>2022 to September 30, 2026 and (ii) decrease the interest rate from BBSY (an Australian<br><br>benchmark variable interest rate) plus 3.875% to BBSY plus 3.625%. All other terms of the AUD<br><br>Term Loan remain consistent with what was disclosed in Note 7 to Notes to Consolidated Financial<br><br>Statements included in our Annual Report.<br><br><br><br>The interest rate in effect under the AUD Term Loan was 5.5% and 4.0% as of June 30, 2022 and<br><br>December 31, 2021, respectively.	OUTSTANDING BORROWINGS<br><br>AU$303,965<br><br><br><br>INTEREST RATE<br><br>5.5%<br><br>As of June 30, 2022		IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	24
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Table of Contents

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

6. DEBT (CONTINUED)

ACCOUNTS RECEIVABLE SECURITIZATION PROGRAM<br><br>On June 29, 2022, we amended the Accounts Receivable Securitization Program to (i) increase the maximum borrowing capacity from $300,000 to $325,000, with an option to increase the borrowing capacity to $400,000, (ii) change the interest rate under Accounts Receivable Securitization Program from LIBOR plus 1.0% to SOFR plus 0.95%, with a credit spread adjustment of 0.10% and (iii) extend the maturity date from July 1, 2023 to July 1, 2025, at which point all obligations become due. All other material terms of the Accounts Receivable Securitization Program remain consistent with what was disclosed in Note 7 to Notes to Consolidated Financial Statements included in our Annual Report.

MAXIMUM AMOUNT<br><br>$325,000<br><br><br><br>OUTSTANDING BORROWING<br><br>$313,200<br><br><br><br>INTEREST RATE<br><br>2.6%<br><br>As of June 30, 2022

CASH POOLING

We currently utilize four separate cash pooling arrangements. We utilize two separate cash pooling arrangements with Bank Mendes Gans ("BMG"), one of which we utilize to manage global liquidity requirements for our qualified REIT subsidiaries ("QRS") (the "BMG QRS Cash Pool") and the other for our TRSs (the "BMG TRS Cash Pool"). We utilize two separate cash pooling arrangements with JP Morgan Chase Bank, N.A. ("JPM"), one of which we utilize to manage global liquidity requirements for our QRSs in the Asia Pacific region (the "JPM QRS Cash Pool") and the other for our TRSs in the Asia Pacific region (the "JPM TRS Cash Pool") (collectively, the "JPM Cash Pools").

The approximate amount of the net cash position for our cash pools and the approximate amount of the gross position and outstanding debit balances for each of these pools as of June 30, 2022 and December 31, 2021 are as follows:

	JUNE 30, 2022						DECEMBER 31, 2021
	GROSS CASH<br><br>POSITION		OUTSTANDING<br><br>DEBIT BALANCES		NET CASH<br><br>POSITION		GROSS CASH<br><br>POSITION		OUTSTANDING<br><br>DEBIT BALANCES		NET CASH<br><br>POSITION
BMG QRS Cash Pool	$	586,400	$	(583,200)	$	3,200	$	552,900	$	(552,100)	$	800
BMG TRS Cash Pool	542,700		(541,300)		1,400		606,000		(603,900)		2,100
JPM QRS Cash Pool	17,100		(16,900)		200		9,400		(9,200)		200
JPM TRS Cash Pool	20,800		(20,000)		800		12,000		(9,900)		2,100

The net cash position balances as of June 30, 2022 and December 31, 2021 are reflected as cash and cash equivalents in our Condensed Consolidated Balance Sheets.

LETTERS OF CREDIT

As of June 30, 2022, we had outstanding letters of credit totaling $37,272, of which $3,831 reduce our borrowing capacity under the Revolving Credit Facility (as described above). The letters of credit expire at various dates between September 2022 and January 2033.

DEBT COVENANTS

The Credit Agreement, our bond indentures and other agreements governing our indebtedness contain certain restrictive financial and operating covenants, including covenants that restrict our ability to complete acquisitions, pay cash dividends, incur indebtedness, make investments, sell assets and take other specified corporate actions. The covenants do not contain a rating trigger. Therefore, a change in our debt rating would not trigger a default under the Credit Agreement, our bond indentures or other agreements governing our indebtedness. The Credit Agreement requires that we satisfy a fixed charge coverage ratio and a net total lease adjusted leverage ratio on a quarterly basis and our bond indentures require that, among other things, we satisfy a leverage ratio (not lease adjusted) or a fixed charge coverage ratio (not lease adjusted), as a condition to taking actions such as paying dividends and incurring indebtedness.

IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	25

Table of Contents

Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

6. DEBT (CONTINUED)

The Credit Agreement uses earnings before interest, taxes, depreciation and amortization and rent expense ("EBITDAR") based calculations and the bond indentures use earnings before interest, taxes, depreciation and amortization ("EBITDA") based calculations as the primary measures of financial performance for purposes of calculating leverage and fixed charge coverage ratios. The EBITDAR- and EBITDA-based leverage calculations include our consolidated subsidiaries, other than those we have designated as "Unrestricted Subsidiaries" as defined in the Credit Agreement and bond indentures. Generally, the Credit Agreement and the bond indentures use a trailing four fiscal quarter basis for purposes of the relevant calculations and require certain adjustments and exclusions for purposes of those calculations, which make the calculation of financial performance for purposes of those calculations under the Credit Agreement and bond indentures not directly comparable to Adjusted EBITDA as presented herein. We are in compliance with our leverage and fixed charge coverage ratios under the Credit Agreement, our bond indentures and other agreements governing our indebtedness as of June 30, 2022 and December 31, 2021. Noncompliance with these leverage and fixed charge coverage ratios would have a material adverse effect on our financial condition.

7. COMMITMENT AND CONTINGENCIES

We are involved in litigation from time to time in the ordinary course of business, including litigation arising from damage to customer assets in our facilities caused by fires and other natural disasters. While the outcome of such litigation is inherently uncertain, we do not believe any current litigation will have a material adverse effect on our consolidated financial condition, results of operations or cash flows.

We have estimated a reasonably possible range for all loss contingencies and believe it is reasonably possible that we could incur aggregate losses in addition to amounts currently accrued for all matters up to an additional $23,000 over the next several years, of which certain amounts would be covered by insurance or indemnity arrangement.

8. STOCKHOLDERS' EQUITY MATTERS

In fiscal year 2021 and the six months ended June 30, 2022, our board of directors declared the following dividends:

DECLARATION DATE	DIVIDEND<br>PER SHARE		RECORD DATE	TOTAL<br>AMOUNT		PAYMENT DATE
February 24, 2021	$	0.6185	March 15, 2021	$	178,569	April 6, 2021
May 6, 2021	0.6185		June 15, 2021	179,026		July 6, 2021
August 5, 2021	0.6185		September 15, 2021	179,080		October 6, 2021
November 4, 2021	0.6185		December 15, 2021	179,132		January 6, 2022
February 24, 2022	0.6185		March 15, 2022	179,661		April 6, 2022
April 28, 2022	0.6185		June 15, 2022	179,781		July 6, 2022

On August 4, 2022, we declared a dividend to our stockholders of record as of September 15, 2022 of $0.6185 per share, payable on October 4, 2022.

9. SEGMENT INFORMATION

In the second quarter of 2022, as a result of the realignment of our global managerial structure, we reassessed the composition of our reportable segments and note that (i) our Entertainment Services offerings are now managed as part of our Global Records and Information Management ("Global RIM") Business segment; (ii) certain commercial costs that were previously managed as part of Corporate and Other Business are now managed as part of our Global RIM Business segment; and (iii) our ALM services, which includes our legacy secure IT disposition business and our business acquired from ITRenew, are now managed as a separate operating segment that is included in Corporate and Other Business. Our reportable segments are described in more detail below, and previously reported segment information has been restated to reflect the changes described above.

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Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

9. SEGMENT INFORMATION (CONTINUED)

(1)Global RIM Business includes several distinct offerings:

(i)Records Management, which stores physical records and provides healthcare information services, vital records services, courier operations, and the collection, handling and disposal of sensitive documents (collectively, "Records Management") for customers in 59 countries around the globe.

(ii)Data Management, which provides storage and rotation of backup computer media as part of corporate disaster recovery plans, including service and courier operations ("Data Protection & Recovery"); server and computer backup services; and related services offerings, (collectively, "Data Management").

(iii)Global Digital Solutions, which develops, implements and supports comprehensive storage and information management solutions for the complete lifecycle of our customers’ information, including the management of physical records, conversion of documents to digital formats and digital storage of information.

(iv)Secure Shredding, which includes the scheduled pick-up of office records that customers accumulate in specially designed secure containers we provide and is a natural extension of our hardcopy records management operations, completing the lifecycle of a record. Through a combination of shredding facilities and mobile shredding units consisting of custom built trucks, we are able to offer secure shredding services to our customers.

(v)Entertainment Services, which includes entertainment and media services which help industry clients store, safeguard and deliver physical media of all types, and provides digital content repository systems that house, distribute, and archive key media assets.

(vi)Consumer Storage, which provides on-demand, valet storage for consumers ("Consumer Storage") in markets across North America through a strategic partnership that utilizes data analytics and machine learning to provide effective customer acquisition and a convenient and seamless consumer storage experience.

(2)Global Data Center Business, which provides enterprise-class data center facilities and hyperscale-ready capacity to protect mission-critical assets and ensure the continued operation of our customers’ IT infrastructure, with secure, reliable and flexible data center options.

(3) Corporate and Other Business consists primarily of our Fine Arts and ALM businesses and other corporate items.

(i) Fine Arts provides technical expertise in the handling, installation and storing of art.

(ii) ALM provides hyperscale and corporate IT infrastructure managers with services and solutions that enable the decommissioning and disposition or sale of IT hardware and component assets. ALM services are enabled by: secure logistics and chain of custody practices, environmentally-responsible asset processing and recycling, and data sanitization and asset refurbishment services that enable value recovery through asset remarketing. Our ALM services focus on protecting and eradicating customer data while maintaining strong, auditable and transparent chain of custody practices.

Corporate and Other Business also includes costs related to executive and staff functions, including finance, human resources and IT, which benefit the enterprise as a whole.

The operations associated with acquisitions completed during the first six months of 2022 have been incorporated as detailed above.

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Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

9. SEGMENT INFORMATION (CONTINUED)

An analysis of our business segment information and reconciliation to the accompanying Condensed Consolidated Financial Statements for the three and six months ended June 30, 2022 and 2021 is as follows:

	GLOBAL RIM BUSINESS		GLOBAL <br>DATA CENTER BUSINESS		CORPORATE <br>AND OTHER <br>BUSINESS		TOTAL<br>CONSOLIDATED
As of and for the Three Months Ended June 30, 2022
Total Revenues	$	1,070,476	$	100,088	$	118,970	$	1,289,534
Adjusted EBITDA	469,368		42,307		(56,969)		454,706
As of and for the Three Months Ended June 30, 2021
Total Revenues	$	996,324	$	76,977	$	46,455	$	1,119,756
Adjusted EBITDA	423,940		33,432		(51,741)		405,631
As of and for the Six Months Ended June 30, 2022
Total Revenues	$	2,119,367	$	197,075	$	221,138	$	2,537,580
Adjusted EBITDA	918,163		84,284		(116,747)		885,700
As of and for the Six Months Ended June 30, 2021
Total Revenues	$	1,973,242	$	148,085	$	80,469	$	2,201,796
Adjusted EBITDA	827,373		63,864		(105,041)		786,196			IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	28
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Part I. Financial Information

IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

9. SEGMENT INFORMATION (CONTINUED)

Adjusted EBITDA for each segment is defined as net income (loss) before interest expense, net, provision (benefit) for income taxes, depreciation and amortization (inclusive of our share of Adjusted EBITDA from our unconsolidated joint ventures), and excluding certain items we do not believe to be indicative of our core operating results, specifically:

EXCLUDED
•Acquisition and Integration Costs<br><br>•Restructuring Charges<br><br>•(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate)	•Other (income) expense, net<br><br>•Stock-based compensation expense

Internally, we use Adjusted EBITDA as the basis for evaluating the performance of, and allocating resources to, our operating segments.

A reconciliation of Net Income (Loss) to Adjusted EBITDA on a consolidated basis for the three and six months ended June 30, 2022 and 2021 is as follows:

	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
	2022		2021		2022		2021
Net Income (Loss)	$	201,858	$	276,522	$	243,565	$	323,153
Add/(Deduct):
Interest expense, net	115,057		105,220		229,499		209,642
Provision (benefit) for income taxes	18,083		110,416		28,163		125,056
Depreciation and amortization	178,254		166,685		361,869		332,327
Acquisition and Integration Costs	16,878		2,277		32,539		2,277
Restructuring Charges	—		39,443		—		79,254
(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate)	(51,249)		(128,935)		(51,954)		(133,386)
Other (income) expense, net, excluding our share of losses (gains) from our unconsolidated joint ventures	(46,103)		(189,605)		7,412		(187,484)
Stock-based compensation expense	20,256		22,536		31,597		33,269
Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures	1,672		1,072		3,010		2,088
Adjusted EBITDA	$	454,706	$	405,631	$	885,700	$	786,196
IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	29
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IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

9. SEGMENT INFORMATION (CONTINUED)

Information as to our revenues by product and service lines by segment for the three and six months ended June 30, 2022 and 2021 are as follows:

	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
	2022		2021		2022		2021
Global RIM Business
Records Management(1)	$	818,993	$	765,818	$	1,621,546	$	1,517,941
Data Management(1)	124,394		133,876		258,050		268,741
Information Destruction(1)(2)	127,089		96,630		239,771		186,560
Data Center(1)	—		—		—		—
Global Data Center Business
Records Management(1)	$	—	$	—	$	—	$	—
Data Management(1)	—		—		—		—
Information Destruction(1)	—		—		—		—
Data Center(1)	100,088		76,977		197,075		148,085
Corporate and Other Business
Records Management(1)	$	36,141	$	34,210	$	68,039	$	61,397
Data Management(1)	—		—		—		—
Information Destruction(1)(3)	82,829		12,245		153,099		19,072
Data Center(1)	—		—		—		—
Total Consolidated
Records Management(1)	$	855,134	$	800,028	$	1,689,585	$	1,579,338
Data Management(1)	124,394		133,876		258,050		268,741
Information Destruction(1)(2)(3)	209,918		108,875		392,870		205,632
Data Center(1)	100,088		76,977		197,075		148,085

(1)Each of these offerings has a component of revenue that is storage rental related and a component that is service revenues, except for information destruction, which does not have a storage rental component.

(2)Includes secure shredding services.

(3)Includes product revenue from ITRenew.

10. RELATED PARTIES

In October 2020, in connection with the formation of the Frankfurt JV, we entered into agreements whereby we will earn various fees, including (i) special project revenue and (ii) property management and construction and development fees for services we are providing to the Frankfurt JV (the "Frankfurt JV Agreements"). Revenues and expenses associated with the Frankfurt JV Agreements are presented as a component of our Global Data Center Business segment. During the three and six months ended June 30, 2022, we recognized revenue of approximately $5,700 and $12,800, respectively, and during the three and six months ended June 30, 2021, we recognized revenue of approximately $800 and $1,900, respectively, associated with the Frankfurt JV Agreements.

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IRON MOUNTAIN INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(In thousands, except share and per share data) (Unaudited)

10. RELATED PARTIES (CONTINUED)

In March 2019, in connection with the formation of the MakeSpace JV, we entered into a storage and service agreement with the MakeSpace JV to provide certain storage and related services to the MakeSpace JV (the "MakeSpace Agreement"). In February 2022, in connection with the formation of the Clutter JV, we terminated the MakeSpace Agreement and entered into a storage and service agreement with the Clutter JV to provide certain storage and related services to the Clutter JV (the "Clutter Agreement"). Revenues and expenses associated with the MakeSpace Agreement and Clutter Agreement are presented as a component of our Global RIM Business segment. During the three and six months ended June 30, 2022, we recognized revenue of approximately $7,400 and $14,400, respectively, and during the three and six months ended June 30, 2021, we recognized revenue of approximately $8,100 and $15,600, respectively, associated with the MakeSpace Agreement and Clutter Agreement.

11. PROJECT SUMMIT

In October 2019, we announced our global program designed to better position us for future growth and achievement of our strategic objectives (“Project Summit”) which we completed as of December 31, 2021.

The implementation of Project Summit resulted in total operating expenditures (“Restructuring Charges”) of approximately $450,000 that primarily consisted of: (1) employee severance costs; (2) internal costs associated with the development and implementation of Project Summit initiatives; (3) professional fees, primarily related to third party consultants who assisted with the design and execution of various initiatives as well as project management activities and (4) system implementation and data conversion costs. As Project Summit was completed as of December 31, 2021, there were no Restructuring Charges for the three and six months ended June 30, 2022. Total Restructuring Charges for the three and six months ended June 30, 2021 was $39,443 and $79,254, respectively, and consisted of (i) employee severance costs of $3,921 and $7,729, respectively, and (ii) professional fees and other costs of $35,522 and $71,525, respectively.

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Part I. Financial Information

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations for the three and six months ended June 30, 2022 should be read in conjunction with our Condensed Consolidated Financial Statements and Notes thereto for the three and six months ended June 30, 2022, included herein, and our Consolidated Financial Statements and Notes thereto for the year ended December 31, 2021, included in our Annual Report on Form 10-K filed with the United States Securities and Exchange Commission ("SEC") on February 24, 2022 (our "Annual Report").

FORWARD-LOOKING STATEMENTS

We have made statements in this Quarterly Report that constitute "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements concern our current expectations regarding our future results from operations, economic performance, financial condition, goals, strategies, investment objectives, plans and achievements. These forward-looking statements are subject to various known and unknown risks, uncertainties and other factors, and you should not rely upon them except as statements of our present intentions and of our present expectations, which may or may not occur. When we use words such as "believes," "expects," "anticipates," "estimates", "plans", "intends", "pursue", "will" or similar expressions, we are making forward-looking statements. Although we believe that our forward-looking statements are based on reasonable assumptions, our expected results may not be achieved, and actual results may differ materially from our expectations. In addition, important factors that could cause actual results to differ from expectations include, among others:

•our ability or inability to execute our strategic growth plan, including our ability to invest according to plan, grow our businesses (including through joint ventures), incorporate alternative technologies into our offerings, achieve satisfactory returns on new product offerings, continue our revenue management, expand internationally and manage our international operations, complete acquisitions on satisfactory terms, integrate acquired companies efficiently and transition to more sustainable sources of energy;

•changes in customer preferences and demand for our storage and information management services, including as a result of the shift from paper and tape storage to alternative technologies that require less physical space;

•the impact of our distribution requirements on our ability to execute our business plan;

•the severity and duration of the COVID-19 pandemic and its effects on the global economy, including its effects on us, the markets we serve and our customers and the third parties with whom we do business within those markets;

•our ability to fund capital expenditures;

•our ability to remain qualified for taxation as a real estate investment trust for United States federal income tax purposes ("REIT");

•the costs of complying with and our ability to comply with laws, regulations and customer requirements, including those relating to data privacy and cybersecurity issues, as well as fire and safety and environmental standards;

•the impact of attacks on our internal information technology ("IT") systems, including the impact of such incidents on our reputation and ability to compete and any litigation or disputes that may arise in connection with such incidents;

•changes in the political and economic environments in the countries in which our international subsidiaries operate and changes in the global political climate, particularly as we consolidate operations and move records and data across borders;

•our ability to raise debt or equity capital and changes in the cost of our debt;

•our ability to comply with our existing debt obligations and restrictions in our debt instruments;

•the impact of service interruptions or equipment damage and the cost of power on our data center operations;

•the cost or potential liabilities associated with real estate necessary for our business;

•failures to implement and manage new IT systems;

•unexpected events, including those resulting from climate change or geopolitical events, could disrupt our operations and adversely affect our reputation and results of operations;

•other trends in competitive or economic conditions affecting our financial condition or results of operations not presently contemplated; and

•the other risks described in our periodic reports filed with the SEC, including under the caption "Risk Factors" in Part I, Item 1A of our Annual Report.

Except as required by law, we undertake no obligation to update any forward-looking statements appearing in this report.

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Part I. Financial Information

OVERVIEW

The following discussions set forth, for the periods indicated, management's discussion and analysis of financial condition and results of operations. Significant trends and changes are discussed for the three and six months ended June 30, 2022 within each section. Trends and changes that are consistent for both the three and six month periods are not repeated and are discussed on a year to date basis only.

PROJECT SUMMIT

In October 2019, we announced our global program designed to better position us for future growth and achievement of our strategic objectives ("Project Summit") which we completed as of December 31, 2021. Project Summit has improved annual Adjusted EBITDA (as defined below) by approximately $375.0 million exiting 2021, of which approximately $160.0 million and $165.0 million were realized in 2021 and 2020, respectively, with the remainder to come in 2022.

ACQUISITION OF ITRENEW

On January 25, 2022, in order to expand our asset lifecycle management ("ALM") operations, we acquired an approximately 80% interest in Intercept Parent, Inc. ("ITRenew"). From January 25, 2022, we consolidate 100% of the revenues and expenses associated with this business. ITRenew is presented in Corporate and Other Business and primarily operates in the United States. See Acquisitions within the Liquidity and Capital Resources section below for additional information.

DIVESTMENTS AND DECONSOLIDATIONS

IPM DIVESTMENT

On June 7, 2021, we sold our Intellectual Property Management ("IPM") business, also known as our technology escrow services business, which we predominantly operated in the United States, for total gross consideration of approximately $215.4 million (the "IPM Divestment"). We have concluded that the IPM Divestment does not meet the criteria to be reported as discontinued operations in our consolidated financial statements, as our decision to divest this business does not represent a strategic shift that will have a major effect on our operations and financial results. Accordingly, the revenues and expenses associated with this business are presented as a component of operating income (loss) in our Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2021 and the cash flows associated with this business is presented as a component of cash flows from operations in our Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2021. Our IPM business represented approximately $6.0 million and $14.2 million of total revenues and approximately $2.5 million and $6.8 million of total net income for the three and six months ended June 30, 2021, respectively.

DECONSOLIDATIONS

On March 24, 2022, as a result of our loss of control, we deconsolidated the businesses included in the acquisition of OSG Records Management (Europe) Limited, excluding Ukraine. We recognized a loss of approximately $105.8 million associated with the deconsolidation to Other expense (income), net in the first quarter of 2022 representing the difference between the net asset value prior to the deconsolidation and subsequent remeasurement of the retained investment to fair value of zero. We have concluded that the deconsolidation does not meet the criteria to be reported as discontinued operations in our consolidated financial statements, as it 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 these businesses are presented as a component of operating income (loss) in our Condensed Consolidated Statements of Operations through the date of deconsolidation and the cash flows associated with these businesses are presented as a component of cash flows from operations in our Condensed Consolidated Statements of Cash Flows through the date of the deconsolidation. These businesses represented approximately $44.9 million of total revenues and $7.2 million of total net income for the year ended December 31, 2021.

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Part I. Financial Information

GENERAL

RESULTS OF OPERATIONS - KEY TRENDS

•We have experienced steady volume in our Global RIM Business segment, with organic storage rental revenue growth driven primarily by revenue management. We expect organic storage rental revenue growth to benefit from revenue management and volume to be relatively stable in the near term.

•Our organic service revenue growth is primarily due to increases in our service activity. We expect organic service revenue growth in 2022 to benefit from our new and existing digital offerings, as well as our traditional services.

•We expect total revenue and Adjusted EBITDA growth to accelerate in 2022 with continued focus on new product and service offerings, innovation, customer solutions and market expansion.

•We expect the impact of a stronger US dollar to create headwinds on reported total revenue and Adjusted EBITDA growth against prior periods through the remainder of 2022 and into 2023.

Cost of sales (excluding depreciation and amortization) and Selling, general and administrative expenses for the six months ended June 30, 2022 consists of the following:

COST OF SALES	SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

NON-GAAP MEASURES

ADJUSTED EBITDA

We define Adjusted EBITDA as net income (loss) before interest expense, net, provision (benefit) for income taxes, depreciation and amortization (inclusive of our share of Adjusted EBITDA from our unconsolidated joint ventures), and excluding certain items we do not believe to be indicative of our core operating results, specifically:

EXCLUDED
•Acquisition and Integration Costs (as defined below)<br><br>•Restructuring Charges (as defined below)<br><br>•(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate)	•Other (income) expense, net<br><br>•Stock-based compensation expense

Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenues. We also show Adjusted EBITDA and Adjusted EBITDA Margin for each of our reportable segments under "Results of Operations – Segment Analysis" below.

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Part I. Financial Information

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

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (IN THOUSANDS):

	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
	2022		2021		2022		2021
Net Income (Loss)	$	201,858	$	276,522	$	243,565	$	323,153
Add/(Deduct):
Interest expense, net	115,057		105,220		229,499		209,642
Provision (benefit) for income taxes	18,083		110,416		28,163		125,056
Depreciation and amortization	178,254		166,685		361,869		332,327
Acquisition and Integration Costs(1)	16,878		2,277		32,539		2,277
Restructuring Charges(2)	—		39,443		—		79,254
(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate)	(51,249)		(128,935)		(51,954)		(133,386)
Other (income) expense, net, excluding our share of losses (gains) from our unconsolidated joint ventures	(46,103)		(189,605)		7,412		(187,484)
Stock-based compensation expense	20,256		22,536		31,597		33,269
Our share of Adjusted EBITDA reconciling items from our unconsolidated joint ventures	1,672		1,072		3,010		2,088
Adjusted EBITDA	$	454,706	$	405,631	$	885,700	$	786,196

(1) Represent operating expenditures directly associated with the closing and integration activities of our business acquisitions that have closed, or are highly probable of closing, and include (i) advisory, legal and professional fees to complete business acquisitions and (ii) costs to integrate acquired businesses into our existing operations, including move, severance, facility upgrade and system integration costs (collectively, "Acquisition and Integration Costs"). Acquisition and Integration Costs do not include costs associated with the formation of joint ventures or costs associated with the acquisition of customer relationships.

(2) Represent operating expenses associated with the implementation of Project Summit that primarily consisted of: (i) employee severance costs; (ii) internal costs associated with the development and implementation of Project Summit initiatives; (iii) professional fees, primarily related to third party consultants who assisted with the design and execution of various initiatives as well as project management activities and (iv) system implementation and data conversion costs.

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Part I. Financial Information

ADJUSTED EPS

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

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

We do not believe these excluded items to be indicative of our ongoing operating results, and they are not considered when we are forecasting our future results. We believe Adjusted EPS is of value to our current and potential investors when comparing our results from past, present and future periods.

RECONCILIATION OF REPORTED EPS—FULLY DILUTED FROM NET INCOME (LOSS) ATTRIBUTABLE TO IRON MOUNTAIN INCORPORATED TO ADJUSTED EPS—FULLY DILUTED FROM NET INCOME (LOSS) ATTRIBUTABLE TO IRON MOUNTAIN INCORPORATED:

	THREE MONTHS ENDED<br> JUNE 30,				SIX MONTHS ENDED<br>JUNE 30,
	2022		2021		2022		2021
Reported EPS—Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated	$	0.68	$	0.95	$	0.83	$	1.11
Add/(Deduct):
Acquisition and Integration Costs	0.06		0.01		0.11		0.01
Restructuring Charges	—		0.14		—		0.27
Amortization related to the write-off of certain customer relationship intangible assets	—		—		0.02		—
(Gain) loss on disposal/write-down of property, plant and equipment, net (including real estate)	(0.18)		(0.44)		(0.18)		(0.46)
Other (income) expense, net, excluding our share of losses (gains) from our unconsolidated joint ventures	(0.16)		(0.65)		0.03		(0.65)
Stock-based compensation expense	0.07		0.08		0.11		0.11
Tax impact of reconciling items and discrete tax items(1)	(0.03)		0.31		(0.07)		0.30
Net Income (Loss) Attributable to Noncontrolling Interests	0.01		—		—		0.01
Adjusted EPS—Fully Diluted from Net Income (Loss) Attributable to Iron Mountain Incorporated(2)	$	0.46	$	0.38	$	0.85	$	0.70

(1)The difference between our effective tax rates and our structural tax rate (or adjusted effective tax rates) for the three and six months ended June 30, 2022 and 2021 is primarily due to (i) the reconciling items above, which impact our reported net income (loss) before provision (benefit) for income taxes but have an insignificant impact on our reported provision (benefit) for income taxes and (ii) other discrete tax items. Our structural tax rate for purposes of the calculation of Adjusted EPS for the three and six months ended June 30, 2022 and 2021 was 16.5% and 16.2%, respectively. The Tax Impact of Reconciling Items and Discrete Tax Items is calculated using the current quarter's estimate of the annual structural tax rate for the full year. This may result in the current period adjustment plus prior period reported quarterly adjustments not summing to the full year adjustment.

(2)Columns may not foot due to rounding.

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Part I. Financial Information

FFO (NAREIT) AND FFO (NORMALIZED)

Funds from operations ("FFO") is defined by the National Association of Real Estate Investment Trusts ("Nareit") as net income (loss) excluding depreciation on real estate assets, losses and gains on sale of real estate, net of tax, and amortization of data center leased-based intangibles and adjusting for our share of reconciling items from our unconsolidated joint ventures from FFO ("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, we modify FFO (Nareit), as is common among REITs seeking to provide financial measures that most meaningfully reflect their particular business ("FFO (Normalized)"). Our definition of FFO (Normalized) excludes certain items included in FFO (Nareit) that we believe are not indicative of our core operating results, specifically:

EXCLUDED
•Acquisition and Integration Costs<br><br>•Restructuring Charges<br><br>•(Gain) loss on disposal/write-down of property, plant and equipment, net (excluding real estate)<br><br>•Other (income) expense, net	•Stock-based compensation expense<br><br>•Real estate financing lease depreciation<br><br>•Tax impact of reconciling items and discrete tax items

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

	THREE MONTHS ENDED <br>JUNE 30,				SIX MONTHS ENDED<br>JUNE 30,
	2022		2021		2022		2021
Net Income (Loss)	$	201,858	$	276,522	$	243,565	$	323,153
Add/(Deduct):
Real estate depreciation	75,008		74,784		154,341		150,831
(Gain) loss on sale of real estate, net of tax	(48,978)		(102,476)		(48,764)		(106,781)
Data center lease-based intangible assets amortization	4,040		10,482		8,163		20,965
FFO (Nareit)	231,928		259,312		357,305		388,168
Add/(Deduct):
Acquisition and Integration Costs	16,878		2,277		32,539		2,277
Restructuring Charges	—		39,443		—		79,254
(Gain) loss on disposal/write-down of property, plant and equipment, net (excluding real estate)	(2,270)		(1,076)		(3,189)		(1,222)
Other (income) expense, net, excluding our share of losses (gains) from our unconsolidated joint ventures(1)	(46,103)		(189,605)		7,412		(187,484)
Stock-based compensation expense	20,256		22,536		31,597		33,269
Real estate financing lease depreciation	3,427		3,515		7,207		7,051
Tax impact of reconciling items and discrete tax items(2)	(8,250)		63,570		(20,876)		60,494
Our share of FFO (Normalized) reconciling items from our unconsolidated joint ventures	374		(9)		354		(13)
FFO (Normalized)	$	216,240	$	199,963	$	412,349	$	381,794

(1)Includes foreign currency transaction (gains) losses, net and other, net. See Note 2.l. to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding the components of Other (income) expense, net.

(2)Represents the tax impact of (i) the reconciling items above, which impact our reported net income (loss) before provision (benefit) for income taxes and (ii) other discrete tax items. Discrete tax items resulted in a (benefit) provision for income taxes of $(0.2) million and $(10.2) million for the three and six months ended June 30, 2022, respectively, and $13.3 million and $14.4 million for the three and six months ended June 30, 2021, respectively.

IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	37

Table of Contents

Part I. Financial Information

CRITICAL ACCOUNTING ESTIMATES

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

•Revenue Recognition

•Accounting for Acquisitions

•Impairment of Tangible and Intangible Assets

•Income Taxes

Further detail regarding our critical accounting estimates can be found in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report, and the Consolidated Financial Statements and the Notes included therein. We have determined that no material changes concerning our critical accounting estimates have occurred since December 31, 2021. See Note 2.e. to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for information regarding the reassessment of the composition of our reporting units as a result of the realignment of our global managerial structure during the second quarter of 2022.

RESULTS OF OPERATIONS

COMPARISON OF THE THREE AND SIX MONTHS ENDED JUNE 30, 2022 TO THE THREE AND SIX MONTHS ENDED JUNE 30, 2021 (IN THOUSANDS):

	THREE MONTHS ENDED JUNE 30,						DOLLAR<br>CHANGE		PERCENTAGE<br>CHANGE
	2022			2021
Revenues	$	1,289,534		$	1,119,756		$	169,778	15.2	%
Operating Expenses	995,753			813,828			181,925		22.4	%
Operating Income	293,781			305,928			(12,147)		(4.0)	%
Other Expenses, Net	91,923			29,406			62,517		212.6	%
Net Income (Loss)	201,858			276,522			(74,664)		(27.0)	%
Net Income (Loss) Attributable to Noncontrolling Interests	1,777			1,237			540		43.7	%
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	200,081		$	275,285		$	(75,204)	(27.3)	%
Adjusted EBITDA(1)	$	454,706		$	405,631		$	49,075	12.1	%
Adjusted EBITDA Margin(1)	35.3		%	36.2		%							SIX MONTHS ENDED JUNE 30,						DOLLAR<br>CHANGE		PERCENTAGE<br>CHANGE
---	---	---	---	---	---	---	---	---	---	---
	2022			2021
Revenues	$	2,537,580		$	2,201,796		$	335,784	15.3	%
Operating Expenses	2,021,669			1,725,462			296,207		17.2	%
Operating Income	515,911			476,334			39,577		8.3	%
Other Expenses, Net	272,346			153,181			119,165		77.8	%
Net Income (Loss)	243,565			323,153			(79,588)		(24.6)	%
Net Income (Loss) Attributable to Noncontrolling Interests	1,185			2,265			(1,080)		(47.7)	%
Net Income (Loss) Attributable to Iron Mountain Incorporated	$	242,380		$	320,888		$	(78,508)	(24.5)	%
Adjusted EBITDA(1)	$	885,700		$	786,196		$	99,504	12.7	%
Adjusted EBITDA Margin(1)	34.9		%	35.7		%

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

IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	38

Table of Contents

Part I. Financial Information

REVENUES

Consolidated revenues consist of the following (in thousands):

	THREE MONTHS ENDED JUNE 30,						PERCENTAGE CHANGE
	2022		2021		DOLLAR<br>CHANGE		ACTUAL		CONSTANT<br><br>CURRENCY(1)		ORGANIC<br><br>GROWTH(2)		IMPACT OF<br>ACQUISITIONS
Storage Rental	$	753,126	$	718,272	$	34,854	4.9	%	7.8	%	8.2	%	(0.4)	%
Service	536,408		401,484		134,924		33.6	%	37.6	%	21.1	%	16.5	%
Total Revenues	$	1,289,534	$	1,119,756	$	169,778	15.2	%	18.5	%	12.8	%	5.7	%			SIX MONTHS ENDED <br>JUNE 30,						PERCENTAGE CHANGE
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2022		2021		DOLLAR<br>CHANGE		ACTUAL		CONSTANT<br><br>CURRENCY(1)		ORGANIC<br><br>GROWTH(2)		IMPACT OF<br>ACQUISITIONS
Storage Rental	$	1,504,196	$	1,426,328	$	77,868	5.5	%	7.8	%	8.0	%	(0.2)	%
Service	1,033,384		775,468		257,916		33.3	%	36.5	%	19.2	%	17.3	%
Total Revenues	$	2,537,580	$	2,201,796	$	335,784	15.3	%	17.9	%	12.0	%	5.9	%

(1)Constant currency growth rates, which are a non-GAAP measure, are calculated by translating the 2021 results at the 2022 average exchange rates.

(2)Our organic revenue growth rate, which is a non-GAAP measure, represents the year-over-year growth rate of our revenues excluding the impact of business acquisitions, divestitures and foreign currency exchange rate fluctuations. Our organic revenue growth rate includes the impact of acquisitions of customer relationships.

TOTAL REVENUES

For the six months ended June 30, 2022, the increase in reported consolidated revenue was primarily driven by organic storage rental revenue growth and organic service revenue growth and the impact of acquisitions, primarily ITRenew. Foreign currency exchange rate fluctuations decreased our reported consolidated revenue growth rate for the six months ended June 30, 2022 by 2.6% compared to the prior year period.

STORAGE RENTAL REVENUES AND SERVICE REVENUES

Primary factors influencing the change in reported consolidated storage rental revenue and reported service revenues for the six months ended June 30, 2022 compared to the six months ended June 30, 2021 include the following:

STORAGE RENTAL REVENUES	•organic storage rental revenue growth driven by increased volume in faster growing markets and our Global Data Center Business segment and revenue management;<br><br>•a 2.0% increase in total global volume excluding deconsolidations (also excluding acquisitions, total global volume increased 0.5%); and<br><br>•a decrease of $31.4 million due to foreign currency exchange rate fluctuations.
SERVICE REVENUES	•organic service revenue growth reflecting increased service activity levels;<br><br>•an increase of $124.4 million due to our recent acquisition of ITRenew; and<br><br>•a decrease of $18.6 million due to foreign currency exchange rate fluctuations.
IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	39
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Table of Contents

Part I. Financial Information

OPERATING EXPENSES

COST OF SALES

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

	THREE MONTHS ENDED <br>JUNE 30,						PERCENTAGE<br>CHANGE				% OF<br>CONSOLIDATED<br>REVENUES				PERCENTAGE<br>CHANGE<br>(FAVORABLE)/<br>UNFAVORABLE
	2022		2021		DOLLAR<br>CHANGE		ACTUAL		CONSTANT<br>CURRENCY		2022		2021
Labor	$	203,459	$	199,084	$	4,375	2.2	%	5.4	%	15.8	%	17.8	%	(2.0)	%
Facilities	213,795		196,098		17,697		9.0	%	12.2	%	16.6	%	17.5	%	(0.9)	%
Transportation	42,391		37,084		5,307		14.3	%	17.4	%	3.3	%	3.3	%	—	%
Product Cost of Sales and Others	96,831		42,313		54,518		128.8	%	136.1	%	7.5	%	3.8	%	3.7	%
Total Cost of sales	$	556,476	$	474,579	$	81,897	17.3	%	20.8	%	43.2	%	42.4	%	0.8	%			SIX MONTHS ENDED<br> JUNE 30,						PERCENTAGE<br>CHANGE				% OF<br>CONSOLIDATED<br>REVENUES				PERCENTAGE<br>CHANGE<br>(FAVORABLE)/<br>UNFAVORABLE
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2022		2021		DOLLAR<br>CHANGE		ACTUAL		CONSTANT<br>CURRENCY		2022		2021
Labor	$	404,960	$	388,480	$	16,480	4.2	%	6.9	%	16.0	%	17.6	%	(1.6)	%
Facilities	432,114		391,061		41,053		10.5	%	13.1	%	17.0	%	17.8	%	(0.8)	%
Transportation	77,659		67,927		9,732		14.3	%	17.0	%	3.1	%	3.1	%	—	%
Product Cost of Sales and Other	188,365		79,020		109,345		138.4	%	144.8	%	7.4	%	3.6	%	3.8	%
Total Cost of sales	$	1,103,098	$	926,488	$	176,610	19.1	%	22.0	%	43.5	%	42.1	%	1.4	%

Primary factors influencing the change in reported consolidated Cost of sales for the six months ended June 30, 2022 compared to the six months ended June 30, 2021 include the following:

•an increase in labor costs driven by an increase in service activity and the impact of recent acquisitions, partially offset by benefits from Project Summit;

•an increase in facilities expenses driven by increases in rent expense, reflecting the impact from our sale-leaseback activity during 2021 and the first half of 2022 (which we expect to continue for the remainder of 2022 as we continue to look for future opportunities to monetize a small portion of our owned industrial real estate assets as part of our ongoing capital recycling program), as well as increases in utilities and building maintenance costs;

•an increase in product cost of sales and other driven by the acquisition of ITRenew; and

•a decrease of $22.2 million due to foreign currency exchange rate fluctuations.

IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	40

Table of Contents

Part I. Financial Information

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

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

	THREE MONTHS ENDED<br> JUNE 30,						PERCENTAGE CHANGE				% OF<br>CONSOLIDATED<br>REVENUES				PERCENTAGE<br>CHANGE<br>(FAVORABLE)/<br>UNFAVORABLE
	2022		2021		DOLLAR<br>CHANGE		ACTUAL		CONSTANT<br>CURRENCY		2022		2021
General, Administrative and Other	$	220,891	$	189,217	$	31,674	16.7	%	19.2	%	17.1	%	16.9	%	0.2	%
Sales, Marketing and Account Management	74,503		70,562		3,941		5.6	%	8.6	%	5.8	%	6.3	%	(0.5)	%
Total Selling, general and administrative expenses	$	295,394	$	259,779	$	35,615	13.7	%	16.3	%	22.9	%	23.2	%	(0.3)	%			SIX MONTHS ENDED<br> JUNE 30,						PERCENTAGE CHANGE				% OF<br>CONSOLIDATED<br>REVENUES				PERCENTAGE<br>CHANGE<br>(FAVORABLE)/<br>UNFAVORABLE
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2022		2021		DOLLAR<br>CHANGE		ACTUAL		CONSTANT<br>CURRENCY		2022		2021
General, Administrative and Other	$	427,207	$	378,210	$	48,997	13.0	%	14.9	%	16.8	%	17.2	%	(0.4)	%
Sales, Marketing and Account Management	148,910		140,292		8,618		6.1	%	8.4	%	5.9	%	6.4	%	(0.5)	%
Total Selling, general and administrative expenses	$	576,117	$	518,502	$	57,615	11.1	%	13.1	%	22.7	%	23.5	%	(0.8)	%

Primary factors influencing the change in reported consolidated Selling, general and administrative expenses for the six months ended June 30, 2022 compared to the six months ended June 30, 2021 include the following:

•an increase in general, administrative and other expenses, driven by recent acquisitions, higher wages and benefits, employee related costs and professional fees, partially offset by benefits from Project Summit;

•an increase in sales, marketing and account management expenses, driven by recent acquisitions, higher compensation expense, primarily reflecting increased wages and benefits, partially offset by lower professional fees; and

•a decrease of $9.2 million due to foreign currency exchange rate fluctuations.

DEPRECIATION AND AMORTIZATION

Depreciation expense increased by $9.6 million, or 4.2%, for the six months ended June 30, 2022 compared to the prior year period. See Note 2.h. to Notes to Consolidated Financial Statements included in our Annual Report for additional information regarding the useful lives over which our property, plant and equipment is depreciated.

Amortization expense increased by $20.0 million, or 19.0%, for the six months ended June 30, 2022 compared to the prior year period.

ACQUISITION AND INTEGRATION COSTS

Acquisition and Integration Costs for the six months ended June 30, 2022 were approximately $32.5 million and primarily consist of legal and professional fees.

(GAIN) LOSS ON DISPOSAL/WRITE-DOWN OF PROPERTY, PLANT AND EQUIPMENT, NET

Consolidated gain on disposal/write-down of property, plant and equipment, net for the three and six months ended June 30, 2022 was approximately $51.2 million and $52.0 million, respectively. The gains for the three and six months ended June 30, 2022 primarily consisted of gains of approximately $49.0 million associated with the sale and sale-leaseback transactions of 11 facilities and parcels of land in the United States, as part of our program to monetize a portion of our industrial assets.

Consolidated gain on disposal/write-down of property, plant and equipment, net for the three and six months ended June 30, 2021 was approximately $128.9 million and $133.4 million, respectively.

IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	41

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Part I. Financial Information

OTHER EXPENSES, NET

INTEREST EXPENSE, NET

Consolidated interest expense, net increased by $19.9 million to $229.5 million in the six months ended June 30, 2022 from $209.6 million in the prior year period, primarily driven by an increase in average debt balances at June 30, 2022. See Note 6 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding our indebtedness.

OTHER (INCOME) EXPENSE, NET

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

	THREE MONTHS ENDED <br>JUNE 30,				DOLLAR<br>CHANGE			SIX MONTHS ENDED<br>JUNE 30,					DOLLAR CHANGE
DESCRIPTION	2022		2021				2022			2021
Foreign currency transaction (gains) losses, net(1)	$	(55,039)	$	4,729	$	(59,768)		$	(68,240)		$	7,043	$	(75,283)
Debt extinguishment expense	—		—		—			671			—		671
Other, net(2)	13,822		(190,959)		204,781			82,253			(188,560)		270,813
Other (Income) Expense, Net	$	(41,217)	$	(186,230)	$	145,013		$	14,684		$	(181,517)	$	196,201

(1)We recognized net foreign currency transaction gains of $55.0 million and $68.2 million for the three and six months ended June 30, 2022, respectively. These gains primarily consist of the impact of changes in the exchange rate of the Euro and the British pound sterling against the United States dollar on our intercompany balances with and between certain of our subsidiaries.

(2)On March 24, 2022, as a result of our loss of control, we deconsolidated the businesses included in the acquisition of OSG Records Management (Europe) Limited, excluding Ukraine. We recognized a loss of approximately $105.8 million associated with the deconsolidation to Other expense (income), net in the first quarter of 2022 representing the difference between the net asset value prior to the deconsolidation and subsequent remeasurement of the retained investment to fair value of zero. We have concluded that the deconsolidation does not meet the criteria to be reported as discontinued operations in our consolidated financial statements, as it does not represent a strategic shift that will have a major effect on our operations and financial results. The loss was partially offset by a gain recorded in the first quarter of 2022 of approximately $35.8 million associated with the Clutter Transaction (as defined below).

PROVISION FOR INCOME TAXES

We provide for income taxes during interim periods based on our estimate of the effective tax rate for the year. Our effective tax rates for the three and six months ended June 30, 2022 and 2021 are as follows:

	THREE MONTHS ENDED JUNE 30,				SIX MONTHS ENDED JUNE 30,
	2022(1)		2021		2022(1)		2021
Effective Tax Rate	8.2	%	28.5	%	10.4	%	27.9	%

(1)The primary reconciling items between the federal statutory tax rate of 21.0% and our overall effective tax rate for the three and six months ended June 30, 2022 were the benefits derived from the dividends paid deduction and the differences in the tax rates to which our foreign earnings are subject. In addition, there were gains and losses recorded in Other expense (income), net and Gain (loss) on disposal/write-down of property, plant and equipment net, during the period for which there was an insignificant tax impact. During the first quarter of 2022, there was also a release of valuation allowances on deferred tax assets of our U.S. taxable REIT subsidiaries ("TRS") of approximately $9.9 million as a result of the ITRenew Transaction.

IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	42

Table of Contents

Part I. Financial Information

NET INCOME (LOSS) AND ADJUSTED EBITDA

The following table reflects the effect of the foregoing factors on our consolidated Net Income (Loss) and Adjusted EBITDA (in thousands):

	THREE MONTHS ENDED JUNE 30,						DOLLAR<br>CHANGE		PERCENTAGE CHANGE
	2022			2021
Net Income (Loss)	$	201,858		$	276,522		$	(74,664)	(27.0)	%
Net Income (Loss) as a percentage of Consolidated Revenue	15.7		%	24.7		%
Adjusted EBITDA	$	454,706		$	405,631		$	49,075	12.1	%
Adjusted EBITDA Margin	35.3		%	36.2		%							SIX MONTHS ENDED JUNE 30,						DOLLAR<br>CHANGE		PERCENTAGE CHANGE
---	---	---	---	---	---	---	---	---	---	---
	2022			2021
Net Income (Loss)	$	243,565		$	323,153		$	(79,588)	(24.6)	%
Net Income (Loss) as a percentage of Consolidated Revenue	9.6		%	14.7		%
Adjusted EBITDA	$	885,700		$	786,196		$	99,504	12.7	%
Adjusted EBITDA Margin	34.9		%	35.7		%						Adjusted EBITDA Margin for the six months ended June 30, 2022 decreased by 80 basis points compared to the same prior year period, primarily reflecting a 130 basis point decrease from the acquisition of ITRenew, partially offset by improved service revenue trends, benefits from Project Summit, revenue management and ongoing cost containment measures.	↑ INCREASED BY $99.5 MILLION OR 12.7%<br><br>Adjusted EBITDA
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Part I. Financial Information

SEGMENT ANALYSIS

See Note 9 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report, for a description of our reportable segments. Previously reported segment information has been restated to conform to the current presentation.

GLOBAL RIM BUSINESS (IN THOUSANDS)

	THREE MONTHS ENDED<br> JUNE 30,											PERCENTAGE CHANGE
				DOLLAR<br>CHANGE				ACTUAL			CONSTANT<br>CURRENCY			ORGANIC<br>GROWTH			IMPACT OF ACQUISITIONS
	2022					2021
Storage Rental	$	649,771			$	628,678			$	21,093		3.4	%		6.4	%		6.3	%	0.1	%
Service	420,705				367,646				53,059			14.4	%		17.8	%		17.7	%	0.1	%
Segment Revenue	$	1,070,476			$	996,324			$	74,152		7.4	%		10.6	%		10.5	%	0.1	%
Segment Adjusted EBITDA	$	469,368			$	423,940			$	45,428
Segment Adjusted EBITDA Margin	43.8		%		42.6		%																	SIX MONTHS ENDED<br> JUNE 30,											PERCENTAGE CHANGE
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
				DOLLAR<br>CHANGE				ACTUAL			CONSTANT<br>CURRENCY			ORGANIC<br>GROWTH			IMPACT OF ACQUISITIONS
	2022					2021
Storage Rental	$	1,299,858			$	1,250,564			$	49,294		3.9	%		6.4	%		6.1	%	0.3	%
Service	819,509				722,678				96,831			13.4	%		16.1	%		15.8	%	0.3	%
Segment Revenue	$	2,119,367			$	1,973,242			$	146,125		7.4	%		10.0	%		9.7	%	0.3	%
Segment Adjusted EBITDA	$	918,163			$	827,373			$	90,790
Segment Adjusted EBITDA Margin	43.3		%		41.9		%

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

Storage Rental <br>Revenue	Service<br>Revenue	Segment <br>Revenue	Segment Adjusted <br>EBITDA

Primary factors influencing the change in revenue and Adjusted EBITDA Margin in our Global RIM Business segment for the six months ended June 30, 2022 compared to the prior year period include the following:

•organic storage rental revenue growth driven by revenue management and volume;

•a 2.0% increase in Global RIM volume excluding deconsolidations (also excluding acquisitions, Global RIM volume increased 0.5%);

•organic service revenue growth mainly driven by increases in our traditional service activity levels and growth in our Global Digital Solutions business;

•a decrease in revenue of $45.7 million due to foreign currency exchange rate fluctuations; and

•a 140 basis point increase in Adjusted EBITDA Margin primarily driven by revenue management, benefits from Project Summit and ongoing cost containment measures.

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Part I. Financial Information

GLOBAL DATA CENTER BUSINESS (IN THOUSANDS)

	THREE MONTHS ENDED<br>JUNE 30,											PERCENTAGE CHANGE
				DOLLAR<br>CHANGE				ACTUAL			CONSTANT<br>CURRENCY			ORGANIC<br>GROWTH			IMPACT OF ACQUISITIONS
	2022					2021
Storage Rental	$	89,768			$	71,237			$	18,531		26.0	%		28.9	%		23.8	%	5.1	%
Service	10,320				5,740				4,580			79.8	%		91.4	%		95.5	%	(4.1)	%
Segment Revenue	$	100,088			$	76,977			$	23,111		30.0	%		33.4	%		29.0	%	4.4	%
Segment Adjusted EBITDA	$	42,307			$	33,432			$	8,875
Segment Adjusted EBITDA Margin	42.3		%		43.4		%																	SIX MONTHS ENDED<br>JUNE 30,											PERCENTAGE CHANGE
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				DOLLAR<br>CHANGE				ACTUAL			CONSTANT<br>CURRENCY			ORGANIC<br>GROWTH			IMPACT OF ACQUISITIONS
	2022					2021
Storage Rental	$	177,219			$	138,394			$	38,825		28.1	%		30.3	%		25.0	%	5.3	%
Service	19,856				9,691				10,165			104.9	%		114.8	%		115.5	%	(0.7)	%
Segment Revenue	$	197,075			$	148,085			$	48,990		33.1	%		35.7	%		30.9	%	4.8	%
Segment Adjusted EBITDA	$	84,284			$	63,864			$	20,420
Segment Adjusted EBITDA Margin	42.8		%		43.1		%

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

Storage Rental <br>Revenue	Service<br>Revenue	Segment <br>Revenue	Segment Adjusted <br>EBITDA

Primary factors influencing the change in revenue, Adjusted EBITDA and Adjusted EBITDA Margin in our Global Data Center Business segment for the six months ended June 30, 2022 compared to the prior year period include the following:

•organic storage rental revenue growth from leases that commenced during the first six months of 2022 and in prior periods, and service revenue growth from project revenue, partially offset by churn of 260 basis points;

•an increase in Adjusted EBITDA primarily driven by organic storage rental revenue growth; and

•a 30 basis point decrease in Adjusted EBITDA Margin reflecting higher pass-through power costs, and a change in revenue mix due to lower margin project revenue during the period, which is expected to have a temporary impact on segment margins, partially offset by ongoing overhead cost management.

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Part I. Financial Information

CORPORATE AND OTHER BUSINESS (IN THOUSANDS)

	THREE MONTHS ENDED <br>JUNE 30,											PERCENTAGE CHANGE
				DOLLAR<br>CHANGE				ACTUAL			CONSTANT<br>CURRENCY			ORGANIC<br>GROWTH			IMPACT OF ACQUISITIONS
	2022					2021
Storage Rental	$	13,587			$	18,357			$	(4,770)		(26.0)	%		(25.2)	%		9.4	%	(34.6)	%
Service	105,383				28,098				77,285			275.1	%		288.7	%		49.5	%	239.2	%
Revenue	$	118,970			$	46,455			$	72,515		156.1	%		162.8	%		37.0	%	125.8	%
Adjusted EBITDA	$	(56,969)			$	(51,741)			$	(5,228)
Adjusted EBITDA as a percentage of Consolidated Revenue	(4.4)		%		(4.6)		%																	SIX MONTHS ENDED <br>JUNE 30,											PERCENTAGE CHANGE
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				DOLLAR<br>CHANGE				ACTUAL			CONSTANT<br>CURRENCY			ORGANIC<br>GROWTH			IMPACT OF ACQUISITIONS
	2022					2021
Storage Rental	$	27,119			$	37,370			$	(10,251)		(27.4)	%		(27.0)	%		8.4	%	(35.4)	%
Service	194,019				43,099				150,920			350.2	%		363.2	%		53.6	%	309.6	%
Revenue	$	221,138			$	80,469			$	140,669		174.8	%		179.8	%		37.5	%	142.3	%
Adjusted EBITDA	$	(116,747)			$	(105,041)			$	(11,706)
Adjusted EBITDA as a percentage of Consolidated Revenue	(4.6)		%		(4.8)		%

Primary factors influencing the change in revenue and Adjusted EBITDA in Corporate and Other Business for the six months ended June 30, 2022 compared to the prior year period include the following:

•a decrease in reported storage revenue reflecting the IPM Divestment in the second quarter of 2021;

•reported service revenue for the six months ended June 30, 2022 includes $124.4 million from the acquisition of ITRenew;

•organic service revenue growth mainly driven by increased service activity levels in our Fine Arts and ALM businesses; and

•a decrease in Adjusted EBITDA driven by higher compensation expense and employee related costs, professional fees and the impact of the IPM Divestment in the second quarter of 2021, partially offset by benefits from Project Summit, improved service revenue trends and the impact of the acquisition of ITRenew.

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Part I. Financial Information

LIQUIDITY AND CAPITAL RESOURCES

GENERAL

We expect to meet our short-term and long-term cash flow requirements through cash generated from operations, cash on hand, borrowings under our Credit Agreement (as defined below) and proceeds from monetizing a small portion of our total industrial real estate assets in the future, as well as other potential financings (such as the issuance of debt or equity). Our cash flow requirements, both in the near and long term, include, but are not limited to, capital expenditures, the repayment of outstanding debt, shareholder dividends, potential and pending business acquisitions and investments and normal business operation needs.

CASH FLOWS

The following is a summary of our cash balances and cash flows (in thousands) as of and for the six months ended June 30,

	2022		2021
Cash Flows from Operating Activities	$	345,924	$	389,202
Cash Flows from Investing Activities	(991,103)		(7,351)
Cash Flows from Financing Activities	542,000		(270,939)
Cash and Cash Equivalents, including Restricted Cash, End of Period	144,746		315,928

A. CASH FLOWS FROM OPERATING ACTIVITIES

For the six months ended June 30, 2022, net cash flows provided by operating activities decreased by $43.3 million compared to the prior year period, primarily due to a decrease in cash from working capital of $213.5 million, primarily related to the timing of accounts payable and accrued expenses and collections of accounts receivable, partially offset by an increase in net income (including non-cash charges) of $170.2 million.

B. CASH FLOWS FROM INVESTING ACTIVITIES

Our significant investing activity during the six months ended June 30, 2022 included:

•We paid cash for capital expenditures of $330.2 million. Additional details of our capital spending are included in the "Capital Expenditures" section below.

•We paid cash for acquisitions (net of cash acquired) of $718.7 million, primarily funded by cash on hand and borrowings under our Revolving Credit Facility (as defined in Note 6 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report).

C. CASH FLOWS FROM FINANCING ACTIVITIES

Our significant financing activities during the six months ended June 30, 2022 included:

•Net proceeds of $904.1 million primarily associated with borrowings under the Revolving Credit Facility, Term Loan A and the Accounts Receivable Securitization Program.

•Payment of dividends in the amount of $364.2 million on our common stock.

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Part I. Financial Information

CAPITAL EXPENDITURES

The following table presents our capital spend for the six months ended June 30, 2022 and 2021, organized by the type of the spending as described in our Annual Report (in thousands):

	SIX MONTHS ENDED JUNE 30,
NATURE OF CAPITAL SPEND	2022		2021
Growth Investment Capital Expenditures:
Data Center	$	183,815	$	136,446
Real Estate	66,855		39,525
Innovation and Other	20,958		9,144
Total Growth Investment Capital Expenditures	271,628		185,115
Recurring Capital Expenditures:
Real Estate	$	23,672	$	29,813
Non-Real Estate	37,834		31,656
Data Center	5,678		3,023
Total Recurring Capital Expenditures	67,184		64,492
Total Capital Spend (on accrual basis)	$	338,812	$	249,607
Net increase (decrease) in prepaid capital expenditures	1,407		116
Net (increase) decrease in accrued capital expenditures	(9,999)		45,863
Total Capital Spend (on cash basis)	$	330,220	$	295,586

Excluding capital expenditures associated with potential future acquisitions, we expect total capital expenditures of approximately $950.0 million for the year ending December 31, 2022. Of this, we expect our capital expenditures for growth investment to be approximately $800.0 million, and our recurring capital expenditures to approach $155.0 million. Approximately $625.0 million of our expected capital expenditures relates to Global Data Center Business development spend.

DIVIDENDS

See Note 8 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for a listing of dividends that we declared during the first six months of 2022 and fiscal year 2021.

On August 4, 2022, we declared a dividend to our stockholders of record as of September 15, 2022 of $0.6185 per share, payable on October 4, 2022.

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Part I. Financial Information

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. The only significant concentration of liquid investments as of June 30, 2022 is related to cash and cash equivalents. See Note 2.f. to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for information on our money market funds and time deposits.

Long-term debt as of June 30, 2022 is as follows (in thousands):

	JUNE 30, 2022
	DEBT (INCLUSIVE OF DISCOUNT)		UNAMORTIZED DEFERRED FINANCING COSTS		CARRYING AMOUNT
Revolving Credit Facility	$	578,000	$	(9,006)	$	568,994
Term Loan A	246,875		—		246,875
Term Loan B	669,460		(4,371)		665,089
Australian Dollar Term Loan (the "AUD Term Loan")	207,221		(519)		206,702
UK Bilateral Revolving Credit Facility (the "UK Bilateral Facility")	170,057		(334)		169,723
37/8% GBP Senior Notes due 2025 (the "GBP Notes")	485,875		(3,058)		482,817
47/8% Senior Notes due 2027 (the "47/8% Notes due 2027")(1)	1,000,000		(7,465)		992,535
51/4% Senior Notes due 2028 (the "51/4% Notes due 2028")(1)	825,000		(6,790)		818,210
5% Senior Notes due 2028 (the "5% Notes due 2028")(1)	500,000		(4,401)		495,599
47/8% Senior Notes due 2029 (the "47/8% Notes due 2029")(1)	1,000,000		(10,488)		989,512
51/4% Senior Notes due 2030 (the "51/4% Notes due 2030")(1)	1,300,000		(12,159)		1,287,841
41/2% Senior Notes due 2031 (the "41/2% Notes")(1)	1,100,000		(10,782)		1,089,218
5% Senior Notes due 2032 (the "5% Notes due 2032")	750,000		(13,164)		736,836
55/8% Senior Notes due 2032 (the "55/8% Notes")(1)	600,000		(5,856)		594,144
Real Estate Mortgages, Financing Lease Liabilities and Other	423,934		(706)		423,228
Accounts Receivable Securitization Program	313,200		(607)		312,593
Total Long-term Debt	10,169,622		(89,706)		10,079,916
Less Current Portion	(86,790)		—		(86,790)
Long-term Debt, Net of Current Portion	$	10,082,832	$	(89,706)	$	9,993,126

(1)Collectively, the "Parent Notes".

See Note 7 to Notes to Consolidated Financial Statements included in our Annual Report and Note 6 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding our long-term debt.

CREDIT AGREEMENT

Our credit agreement (the "Credit Agreement") consists of a revolving credit facility (the "Revolving Credit Facility"), a term loan A (the "Term Loan A") and a term loan B (the "Term Loan B"). On March 18, 2022, we entered into an amendment to the Credit Agreement which included the following changes:

(i) extended the maturity date of the Revolving Credit Facility and Term Loan A from June 3, 2023 to March 18, 2027;

(ii) refinanced and increased the borrowing capacity that IMI and certain of its United States and foreign subsidiaries are able to borrow under the Revolving Credit Facility from $1,750.0 million to $2,250.0 million;

(iii) refinanced the existing Term Loan A with a new $250.0 million Term Loan A; and

(iv) increased the net total lease adjusted leverage ratio maximum allowable from 6.5x to 7.0x and removed the net secured lease adjusted leverage ratio requirement.

On March 18, 2022, we borrowed the full amount of the Term Loan A. As of June 30, 2022, we had $578.0 million, $246.9 million and $670.3 million of outstanding borrowings under the Revolving Credit Facility, Term Loan A and Term Loan B, respectively. In addition, we also had various outstanding letters of credit totaling $3.8 million. The remaining amount available for borrowing under the Revolving Credit Facility as of June 30, 2022 was $1,668.2 million (which represents the maximum availability as of such date). Additionally, the Credit Agreement permits us to incur incremental indebtedness thereunder by adding new term loans or revolving loans or by increasing the principal amount of any existing loans thereunder, subject to a cap contained therein.

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Part I. Financial Information

AUSTRALIAN DOLLAR TERM LOAN

On March 18, 2022, Iron Mountain Australia Group Pty, Ltd. ("IM Australia"), a wholly owned subsidiary of IMI, amended its AUD Term Loan to (i) extend the maturity date from September 22, 2022 to September 30, 2026 and (ii) decrease the interest rate from BBSY (an Australian benchmark variable interest rate) plus 3.875% to BBSY plus 3.625%. All other terms of the AUD Term Loan remain consistent with what was disclosed in Note 7 to Notes to Consolidated Financial Statements included in our Annual Report.

ACCOUNTS RECEIVABLE SECURITIZATION PROGRAM

On June 29, 2022, we amended the Accounts Receivable Securitization Program to (i) increase the maximum borrowing capacity from $300.0 million to $325.0 million, with an option to increase the borrowing capacity to $400.0 million, (ii) change the interest rate under Accounts Receivable Securitization Program from LIBOR plus 1.0% to SOFR plus 0.95%, with a credit spread adjustment of 0.10% and (iii) extend the maturity date from July 1, 2023 to July 1, 2025, at which point all obligations become due. All other material terms of the Accounts Receivable Securitization Program remain consistent with what was disclosed in Note 7 to Notes to Consolidated Financial Statements included in our Annual Report.

LETTERS OF CREDIT

As of June 30, 2022, we had outstanding letters of credit totaling $37.3 million, of which $3.8 million reduce our borrowing capacity under the Revolving Credit Facility. The letters of credit expire at various dates between September 2022 and January 2033.

DEBT COVENANTS

The Credit Agreement, our bond indentures and other agreements governing our indebtedness contain certain restrictive financial and operating covenants, including covenants that restrict our ability to complete acquisitions, pay cash dividends, incur indebtedness, make investments, sell assets and take other specified corporate actions. The covenants do not contain a rating trigger. Therefore, a change in our debt rating would not trigger a default under the Credit Agreement, our bond indentures or other agreements governing our indebtedness. The Credit Agreement requires that we satisfy a fixed charge coverage ratio and a net total lease adjusted leverage ratio on a quarterly basis and our bond indentures require that, among other things, we satisfy a leverage ratio (not lease adjusted) or a fixed charge coverage ratio (not lease adjusted), as a condition to taking actions such as paying dividends and incurring indebtedness.

The Credit Agreement uses earnings before interest, taxes, depreciation and amortization and rent expense ("EBITDAR") based calculations and the bond indentures use earnings before interest, taxes, depreciation and amortization ("EBITDA") based calculations as the primary measures of financial performance for purposes of calculating leverage and fixed charge coverage ratios. The EBITDAR- and EBITDA-based leverage calculations include our consolidated subsidiaries, other than those we have designated as "Unrestricted Subsidiaries" as defined in the Credit Agreement and bond indentures. Generally, the Credit Agreement and the bond indentures use a trailing four fiscal quarter basis for purposes of the relevant calculations and require certain adjustments and exclusions for purposes of those calculations, which make the calculation of financial performance for purposes of those calculations under the Credit Agreement and bond indentures not directly comparable to Adjusted EBITDA as presented herein. These adjustments can be significant. For example, the calculation of financial performance under the Credit Agreement and certain of our bond indentures includes (subject to specified exceptions and caps) adjustments for non-cash charges and for expected benefits associated with (i) completed acquisitions, (ii) certain executed lease agreements associated with our data center business that have yet to commence, and (iii) restructuring and other strategic initiatives, such as Project Summit. The calculation of financial performance under our other bond indentures includes, for example, adjustments for non-cash charges and for expected benefits associated with (i) completed acquisitions, and (ii) events that are extraordinary, unusual or non-recurring.

Our leverage and fixed charge coverage ratios under the Credit Agreement as of June 30, 2022 are as follows:

	JUNE 30, 2022	MAXIMUM/MINIMUM ALLOWABLE
Net total lease adjusted leverage ratio	5.3	Maximum allowable of 7.0
Fixed charge coverage ratio	2.5	Minimum allowable of 1.5

We are in compliance with our leverage and fixed charge coverage ratios under the Credit Agreement, our bond indentures and other agreements governing our indebtedness as of June 30, 2022. 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.

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Part I. Financial Information

DERIVATIVE INSTRUMENTS

INTEREST RATE SWAP AGREEMENTS

In March 2018, we entered into interest rate swap agreements to limit our exposure to changes in interest rates on a portion of our floating rate indebtedness. These swap agreements expired in March 2022. 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. As of June 30, 2022, we had $350.0 million in notional value of interest rate swap agreements outstanding, which expire in March 2024. Under the interest rate swap agreements, we receive variable rate interest payments associated with the notional amount of each interest rate swap, based upon one-month LIBOR, in exchange for the payment of fixed interest rates as specified in the interest rate swap agreements.

We have designated these interest rate swap agreements as cash flow hedges.

CROSS-CURRENCY SWAP AGREEMENTS

We enter into cross-currency swap agreements to hedge the variability of exchange rate impacts between the United States dollar and the Euro. The cross-currency swap agreements are designated as a hedge of net investment against certain of our Euro denominated subsidiaries and require an exchange of the notional amounts at maturity.

In August 2019, we entered into cross-currency swap agreements whereby we notionally exchanged approximately $110.0 million at an interest rate of 6.0% for approximately 99.1 million Euros at a weighted average interest rate of approximately 3.65%. These cross-currency swap agreements expire in August 2023.

In September 2020, we entered into cross-currency swap agreements 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 $359.2 million at an interest rate of 4.5% for 300.0 million Euros at a weighted average interest rate of approximately 3.4%. These cross-currency swap agreements were set to expire in February 2026. In May 2022, these cross-currency swaps were amended ("February 2026 Cross-Currency Swap Agreements"). Under the terms of the February 2026 Cross-Currency Swap Agreements we notionally exchanged approximately $359.2 million at an interest rate of 4.5% for approximately 340.5 million Euros at a weighted average interest rate of approximately 1.2%. These February 2026 Cross-Currency Swap Agreements are set to expire in February 2026.

See Note 5 to Notes to Condensed Consolidated Financial Statements included in this Quarterly Report for additional information on our derivative instruments.

ACQUISITIONS

On January 25, 2022, we acquired an approximately 80% interest in ITRenew, at an agreed upon purchase price of $725.0 million, subject to certain working capital adjustments at, and subsequent to, the closing (the "ITRenew Transaction"). At closing, we paid approximately $748.8 million and acquired approximately $30.7 million of cash on hand, for a net purchase price of approximately $718.1 million for the ITRenew Transaction. The acquisition agreement provides us the option to purchase, and provides the shareholders of ITRenew the option to sell, the remaining approximately 20% interest in ITRenew as follows: (i) approximately 16% on or after the second anniversary of the ITRenew Transaction and (ii) approximately 4% on or after the third anniversary of the ITRenew Transaction (collectively, the "Remaining Interests"). The total payments for the Remaining Interests, based on the achievement of certain targeted performance metrics, will be no less than $200.0 million and no more than $531.0 million (the "Deferred Purchase Obligation"). The maximum amount of the Deferred Purchase Obligation would require achievement of the targeted performance metrics at approximately two times the level that is assumed in our current fair value estimate of the Deferred Purchase Obligation of $275.1 million. From January 25, 2022, we consolidate 100% of the revenues and expenses associated with this business. The Deferred Purchase Obligation is reflected as a long-term liability in our Condensed Consolidated Balance Sheet at June 30, 2022, and, accordingly, we have not reflected any non-controlling interests associated with the ITRenew Transaction as the Remaining Interests have non-substantive equity interest rights. Subsequent increases or decreases in the fair value estimate of the Deferred Purchase Obligation will be included as a component of Other expense (income), net in our Consolidated Statements of Operations until the Deferred Purchase Obligation is settled or paid.

INVESTMENTS

In February 2022, the joint venture formed by MakeSpace Labs, Inc. and us (the "MakeSpace JV") entered into an agreement with Clutter, Inc. ("Clutter") pursuant to which the equityholders of the MakeSpace JV contributed their ownership interests in the MakeSpace JV and Clutter’s shareholders contributed their ownership interests in Clutter to create a newly formed venture (the "Clutter JV"). In exchange for our 49.99% interest in the MakeSpace JV, we received an approximate 27% interest in the Clutter JV (the "Clutter Transaction"). As a result of the Clutter Transaction, we recognized a gain related to our contributed interest in the MakeSpace JV of approximately $35.8 million, which was recorded to Other, net, a component of Other expense (income), net during the first quarter of 2022.

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Part I. Financial Information

JOINT VENTURE SUMMARY

The following joint ventures are accounted for as equity method investments and are presented as a component of Other within Other assets, net in our Condensed Consolidated Balance Sheets. The carrying values and equity interests in our joint ventures at June 30, 2022 and December 31, 2021 are as follows (in thousands):

	JUNE 30, 2022				DECEMBER 31, 2021
	CARRYING VALUE		EQUITY INTEREST		CARRYING VALUE		EQUITY INTEREST
Joint venture with Web Werks India Private Limited	$	51,427	38.50	%	$	51,140	38.50	%
Joint venture with AGC Equity Partners	26,798		20.00	%	26,167		20.00	%
MakeSpace JV	—		—	%	30,154		49.99	%
Clutter JV	60,984		26.73	%	—		—	%
IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	52
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Part I. Financial Information

ITEM 4. CONTROLS AND PROCEDURES

DISCLOSURE CONTROLS AND PROCEDURES

The term "disclosure controls and procedures" is defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These rules refer to the controls and other procedures of a company that are designed to ensure that information is recorded, processed, accumulated, summarized, communicated and reported to management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding what is required to be disclosed by a company in the reports that it files under the Exchange Act. As of June 30, 2022 (the "Evaluation Date"), we carried out an evaluation, under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, of the effectiveness of our disclosure controls and procedures. Based upon that evaluation, our chief executive officer and chief financial officer concluded that, as of the Evaluation Date, our disclosure controls and procedures are effective.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

Our management, with the participation of our principal executive officer and principal financial officer, is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act. Our internal control system is designed to provide reasonable assurance to our management and board of directors regarding the preparation and fair presentation of published financial statements.

There were no changes in our internal control over financial reporting that occurred during the quarter ended June 30, 2022, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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Part II. Other Information

PART II. OTHER INFORMATION

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

We did not sell any unregistered equity securities during the three months ended June 30, 2022, nor did we repurchase any shares of our common stock during the three months ended June 30, 2022.

ITEM 6. EXHIBITS

(A) EXHIBITS

Certain exhibits indicated below are incorporated by reference to documents we have filed with the SEC.

EXHIBIT NO.	DESCRIPTION
31.1	Rule 13a-14(a) Certification of Chief Executive Officer. (Filed herewith.)
31.2	Rule 13a-14(a) Certification of Chief Financial Officer. (Filed herewith.)
32.1	Section 1350 Certification of Chief Executive Officer. (Furnished herewith.)
32.2	Section 1350 Certification of Chief Financial Officer. (Furnished herewith.)
101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document.
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	Inline XBRL Taxonomy Label Linkbase Document.
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.		IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	55
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Part II. Other Information

SIGNATURES

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

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

Dated: August 4, 2022

IRON MOUNTAIN JUNE 30, 2022 FORM 10-Q	56

Document

EXHIBIT 31.1

CERTIFICATIONS

I, William L. Meaney, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of Iron Mountain Incorporated;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.    The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 4, 2022

/s/ WILLIAM L. MEANEY
William L. Meaney
President and Chief Executive Officer

Document

EXHIBIT 31.2

CERTIFICATIONS

I, Barry A. Hytinen, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of Iron Mountain Incorporated;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.    The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 4, 2022

/s/ BARRY A. HYTINEN
Barry A. Hytinen
Executive Vice President and Chief Financial Officer

Document

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. Section 1350, as adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the filing of the quarterly report on Form 10-Q for the quarter ended June 30, 2022 (the "Report") by Iron Mountain Incorporated (the "Company"), the undersigned, as the President and Chief Executive Officer of the Company, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1.    the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and

2.    the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 4, 2022

/s/ WILLIAM L. MEANEY
William L. Meaney
President and Chief Executive Officer

Document

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. Section 1350, as adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the filing of the quarterly report on Form 10-Q for the quarter ended June 30, 2022 (the "Report") by Iron Mountain Incorporated (the "Company"), the undersigned, as the Executive Vice President and Chief Financial Officer of the Company, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1.    the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and

2.    the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 4, 2022

/s/ BARRY A. HYTINEN
Barry A. Hytinen
Executive Vice President and Chief Financial Officer