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The initial cost was $0 if the lease of the respective IBX was classified as an operating lease. The unaudited quarterly financial information presented below has been prepared by the Company and reflects all adjustments, consisting only of normal recurring adjustments, which in the opinion of management are necessary to present fairly the financial position and results of operations for the interim periods presented. Company’s offerings, the introduction of new offerings, changes in prices and pricing models, trends in the internet infrastructure industry, general economic conditions, extraordinary events such as acquisitions or litigation and the occurrence of unexpected events. Includes $334.7 million and $373.7 million of operating lease ROU assets attributed to the U.S. as of December 31, 2020 and 2019, respectively. The unrecognized tax benefits of $207.8 million as of December 31, 2020, of which $33.8 million is subject to an indemnification agreement, if subsequently recognized, will affect the Company’s effective tax rate favorably at the time when such a benefit is recognized. The total amount of NOL carryforwards that will not be available to offset the Company’s future taxable income after dividend paid deduction due to Section 382 limitations was $165.1 million for federal.
One of the factors that investors may consider in deciding whether to buy or sell our common stock is our distribution rate as a percentage of our stock price relative to market interest rates. If market interest rates increase, prospective investors may demand a higher distribution rate or seek alternative investments paying higher dividends or interest. As a result, interest rate fluctuations and conditions in the capital markets may affect the market value of our common stock. Furthermore, companies that have experienced volatility in the market price of their stock have been subject to securities class action litigation. Securities litigation against us could result in substantial costs and/or damages, and divert management’s attention from other business concerns, which could seriously harm our business.
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As of December 31, 2020 and 2019, the total notional amounts of these foreign exchange contracts were $912.9 million and $824.8 million, respectively. On August 7, 2020, the Company entered into an agreement to purchase the India operations of GPX Global Systems, Inc. (“GPX India”), representing 2 data centers in Mumbai, India for approximately $161.0 million in an all-cash transaction (the “GPX India Acquisition”). The GPX India Acquisition is expected to close in the second quarter of 2021, subject to customary closing conditions including regulatory approval. Upon the close of the acquisition, the operating results of the acquired business will be reported in the Asia-Pacific region.
The building and land were originally accounted for as a finance lease and operating lease, respectively. The Company determined the remaining 5 three-year renewal options were reasonably certain to be exercised and therefore, the concluded lease term was 18 years. The Company reassessed the lease classification and determined that the lease should be accounted for as finance lease. Land was determined Most traded сryptocurrency pairs – Best pairs to trade to not be a component of the lease as the Company no longer controlled substantially all of the economic benefits from its use. The Company hedges its foreign currency translation exposure for forecasted revenues and expenses in its EMEA region between the U.S. The foreign currency forward and option contracts that the Company uses to hedge this exposure are designated as cash flow hedges.
Equinix Expands Rio De Janeiro Data Center
It is possible that we may not be able to generate net income on a quarterly or annual basis in the future. In addition, a relatively large portion of our expenses are fixed in the short-term, particularly with respect to lease and personnel expenses, depreciation and amortization and interest expenses. As such, comparisons to prior reporting periods should not be relied upon as indications of our future performance. In addition, our results of operations results in one or more future quarters may fail to meet the expectations of securities analysts or investors. Furthermore, we are dependent upon internet service providers, telecommunications carriers and other website operators in the Americas, Asia-Pacific and EMEA regions and elsewhere, some of which have experienced significant system failures and electrical outages in the past. Our customers may in the future experience difficulties due to system failures unrelated to our systems and offerings.
Treasury zero-coupon issues with remaining terms similar to the expected term of the equity awards. The expected dividend rate used was based on average dividend yields and the expected term used was equal to the term of each purchase window. The Company guarantees certain service levels, such as uptime, as outlined in individual customer contracts. If these service levels are not achieved due to any failure of the physical infrastructure or offerings, or in the event of certain instances of damage to customer infrastructure within the Company’s IBX data centers, the Company would reduce revenue for any credits or cash payments given to the customer. The Company enters into non-cancellable lease arrangements as the lessee primarily for its data center spaces, office spaces and equipment.
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In October 2013, as a result of the Frankfurt Kleyer 90 Carrier Hotel Acquisition, the Company assumed a mortgage payable of $42.9 million with an effective interest rate of 4.25%. The mortgage payable has monthly principal and interest payments and has an expiration date of August 2022. The amendment provided for a senior unsecured term loan in an aggregate principal amount of ¥47.5 billion (the “JPY Term Loan”). The Company entered into lease agreements in various locations that have not yet commenced as of December 31, 2020. These leases will commence between 2021 and 2022, with lease terms of 10 to 49 years and a total lease commitment of approximately $684.1 million.
The Company also elected to apply the land easements practical expedient which permits the Company not to assess at transition whether any expired or existing land easements are, or contain, leases if they were not previously accounted for as leases under Topic 840. In February 2020, the World Health Organization (“WHO”) raised the COVID-19 threat from high to very high, and in March 2020, the WHO characterized COVID-19 as a global pandemic. Direct and indirect incremental costs solely related to obtaining revenue contracts are capitalized as costs of obtaining a contract, when they are incremental and if they are expected to be recovered. Such costs consist primarily of commission fees and sales bonuses, as well as indirect related payroll costs.
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Larger companies like Schneider Electric are not only partnering with startups but also developing edge data center products of their own. Schneider offers a number of different prefabricated modular data centers, which are ideal for a variety of industries that need hyper-local compute and storage capacity. Vapor IO is one company offering colocation services at the edge by placing small data centers at the base of cell towers.
Goodwill is attributable to the workforce of the acquired business and the projected revenue increase expected to arise from future customers after these acquisitions. Goodwill from the Bell Acquisition is expected to be deductible for local tax purposes while goodwill from the Packet and Axtel Acquisitions are not amortizable for local tax purposes. ROU lease liabilities are measured based on the present value of fixed lease payments over the lease term. ROU assets consist of initial measurement Equinix Expands Relationship With De of the lease liability; lease payments made to the lessor at or before the commencement date less any lease incentives received; and initial direct costs incurred by the Company. Lease payments may vary because of changes in facts or circumstances occurring after the commencement, including changes in inflation indices. Variable lease payments that depend on an index or a rate are included in the measurement of ROU assets and lease liabilities using the index or rate at the commencement date.
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We attempt to limit our exposure to system downtime by using backup generators and alternative power supplies, but these measures may not always prevent downtime, which can adversely affect customer experience and revenues. allows enterprises, SaaS companies and digital service providers to provision interconnected bare metal resources in minutes instead of months, while reducing the capital expenditures and operational requirements of owning hardware. They can also reduce cloud costs while retaining the flexibility and operational expenditures of cloud services via on demand, reserved or spot market capacity in Equinix’s global data centers using the Equinix Metal portal or DevOps-friendly APIs and integrations. As part of their digital transformation, businesses in most industries are shifting their centralized IT infrastructures to the edge to bring digital services closer to users for better performance, which has become a significant driver of digital business value. To realize the full potential of the edge, IT organizations require greater interconnection bandwidth. Interconnection bandwidth is defined as the total capacity provisioned to privately and directly exchange traffic, with a diverse set of partners and providers, at distributed IT exchange points inside carrier-neutral colocation data centers.
The occurrence of any of these risks could have a material adverse effect on our business, results of operations, financial condition or cash flows. If an acquisition does not proceed or is materially delayed for any reason, the price of our common stock may be adversely impacted, and we will not recognize the anticipated benefits of the acquisition. Our new IBX data centers require construction and operation of a sophisticated redundant fiber network. The construction required to connect multiple carrier facilities to our IBX data centers is complex and involves factors outside of our control, including regulatory processes and the availability of construction resources. Any hardware or fiber failures on this network may result in significant loss of connectivity to our new IBX data center expansions.
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In fact, the coronavirus pandemic has proven the world can do even more online than it perhaps thought possible before people were forced to socially distance. Data center landlord CyrusOne has been growing, and is definitely looking to keep growing, along with the digitization of the world. 15 years of innovation, independence and pioneering spirit underpin its customer relationships – trusted partnerships with technology-empowered companies that are embracing global opportunities, scaling rapidly and outperforming competitors. Your Housing Group, one of the UK’s largest social housing providers, has switched the majority of its offices to a data network put in place by MDNX across 60 sites in the North West Region. The network will enable Your Housing Group to be more agile and flexible with its network through a carrier integrator model, managed by MDNX and was one of the first to be procured using the PSN Connectivity Framework Agreement. In December 2020, the Company also sold certain data center facilities in Asia-Pacific region to the Asia-Pacific Joint Venture and recognized an insignificant gain on assets sale during the year ended December 31, 2020.
- After opening the trading day at $14.80, shares of CompX International Inc. stayed within a range of $15.07 to $14.77.
- It may not be possible to find replacement products or supplies and ongoing delays could affect our business and growth.
- In the event that an IBX data center lease does not have a renewal option, or we fail to exercise a renewal option in a timely fashion and lose our right to renew the lease, we may not be successful in negotiating a renewal of the lease with the landlord.
- In December 2019, a novel strain of coronavirus, referred to as Coronavirus disease 2019, or COVID-19, emerged.
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- changes in customer payment terms and any applicable long term forecast when evaluating revenue recognition and the adequacy of the Company’s reserves.
- BSO, the global telecoms operator powering the digital age, has officially entered the South American market, marking another milestone in the company’s fast-paced international expansion and once again demonstrating its experience in emerging market connectivity.
The Company estimates exposure on certain liabilities, such as indirect and property taxes, based on the best information available at the time of determination. With respect to real and personal property taxes, the Company records what it can reasonably estimate based on prior payment history, assessed value by the assessor’s office, current landlord estimates or estimates based on current or changing fixed asset values in each specific municipality, as applicable. Based upon the most current facts and circumstances, the Company makes the necessary property tax accruals for each of its reporting periods.
In connection with the EMEA Joint Venture closed in October 2019, the Company committed to make future equity contributions to the EMEA Joint Venture. As of December 31, 2020, the Company had future equity contribution commitments of €13.8 million and £6.6 million, or $25.8 million in total at the exchange rate in effect on December 31, 2020. The tax basis of REIT assets, excluding investments in TRSs, is greater than the amounts reported for such assets in the accompanying consolidated balance sheet by approximately $2.0 billion as of December 31, 2020.
We purchase significant amounts of electricity from generating facilities and utility companies that are subject to environmental laws, regulations and permit requirements. These environmental requirements are subject to material change, which could result in increases in our electricity suppliers’ compliance costs that may be passed through to us. EPA or other international regulators could limit air emissions from fossil fuel-fired power plants, restrict discharges of cooling water, and otherwise impose new operational restraints on conventional power plants that could increase costs of electricity. Regulatory programs intended to promote increased generation of electricity from renewable sources may also increase our costs of procuring electricity. In addition, we are directly subject to environmental, health and safety laws regulating air emissions, storm water management and other issues arising in our business. For example, our emergency generators are subject to state and federal regulations governing air pollutants, which could limit the operation of those generators or require the installation of new pollution control technologies.
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The Code limits interest deductions for businesses, whether in corporate or passthrough form, to the sum of the taxpayer’s business interest income for the tax year and 50% (30% for tax years after 2020) of the taxpayer’s adjusted taxable income for that tax year. If we so elect in the future, depreciable real property that we hold would be required to be depreciated for U.S. federal income tax purposes under the alternative depreciation system of the Code, which generally imposes a class life for depreciable real property as long as 40 years. The Organisation for Economic Co-operation and Development (“OECD”) is an international association made up of 37 countries Equinix Expands Relationship With De including the U.S. The OECD has proposed and made numerous changes to long-standing tax principles, which, if adopted by the member countries, could have a materially adverse effect on our tax liabilities. For example, various jurisdictions are starting to explore the taxation of digital service through the adoption of tax principles which could have a negative effect on Equinix’s tax liability. Regulation of greenhouse gas (“GHG”) emissions could increase the cost of electricity by reducing amounts of electricity generated from fossil fuels, by requiring the use of more expensive generating methods or by imposing taxes or fees upon electricity generation or use.
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