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SEC Filings

10-Q
EQUINIX INC filed this Form 10-Q on 11/02/2018
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the past year, we have been investing in our EMEA general and administrative functions as a result of our ongoing efforts to scale this region effectively for growth. Going forward, although we are carefully monitoring our spending, we expect our EMEA general and administrative expenses to increase in future periods as we continue to scale our operations to support our growth.
Asia-Pacific General and Administrative Expenses. The increase in our Asia-Pacific general and administrative expenses was primarily due to higher compensation costs, including general salaries, bonuses, stock-based compensation, and headcount growth (475 Asia-Pacific general and administrative employees as of September 30, 2018 versus 427 as of September 30, 2017). The impact of foreign currency fluctuations on our Asia-Pacific general and administrative expenses for the nine months ended September 30, 2018 was not significant when compared to average exchange rates of the nine months ended September 30, 2017. Going forward, although we are carefully monitoring our spending, we expect Asia-Pacific general and administrative expenses to increase as we continue to support our growth, including the impact from the Metronode acquisition.
Acquisition Costs. During the nine months ended September 30, 2018, we recorded acquisition costs totaling $33.9 million, primarily in the Asia-Pacific and Americas regions, due to our acquisitions of Metronode and Infomart Dallas. During the nine months ended September 30, 2017, we recorded acquisition costs totaling $31.5 million, primarily in the Americas region, due to the Verizon Data Center Acquisition.
Gain on Asset Sales. During the nine months ended September 30, 2018, we recorded a gain on asset sales of $6.0 million primarily relating to the sale of the FR3 data center in the EMEA region. We did not have any gain on asset sales during the nine months ended September 30, 2017.
Income from Operations. Our income from operations for the nine months ended September 30, 2018 and 2017 was split among the following geographic regions (dollars in thousands):
 
Nine Months Ended September 30,
 
% Change
 
2018
 
%
 
2017
 
%
 
Actual
 
Constant
Currency
Americas
$
295,983

 
42
%
 
$
261,934

 
46
%
 
13
%
 
14
%
EMEA
225,979

 
32
%
 
164,105

 
28
%
 
38
%
 
27
%
Asia-Pacific
184,704

 
26
%
 
150,932

 
26
%
 
22
%
 
19
%
Total
$
706,666

 
100
%
 
$
576,971

 
100
%
 
22
%
 
19
%
Americas Income from Operations. The increase in our Americas income from operations was primarily due to higher income generated from acquisitions, higher revenues as a result of our IBX data center expansion activity and organic growth as described above. The impact of foreign currency fluctuations on our Americas income from operations for the nine months ended September 30, 2018 was not significant when compared to average exchange rates of the nine months ended September 30, 2017.
EMEA Income from Operations. The increase in our EMEA income from operations was primarily due to higher revenues as a result of our IBX data center expansion activity and acquisitions, as described above, as well as lower sales and marketing and general and administrative expenses as a percentage of revenues, which was primarily due to lower amortization costs as a result of fully amortizing the TelecityGroup trade names during the third quarter of 2017. Foreign currency fluctuations on our EMEA income from operations for the nine months ended September 30, 2018 resulted in approximately $17.3 million of net favorable foreign currency impact to our EMEA income from operations primarily due to a generally weaker U.S. dollar relative to the Euro and British Pound during the nine months ended September 30, 2018 compared to the nine months ended September 30, 2017.
Asia-Pacific Income from Operations. The increase in our Asia-Pacific income from operations was primarily due to higher income generated from the Metronode Acquisition, higher revenues as a result of our IBX data center expansion activity and organic growth as described above and lower operating expenses as a percentage of revenues, especially cost of sales. Foreign currency fluctuations on our Asia-Pacific income from operations for the nine months ended September 30, 2018 resulted in approximately $4.8 million of net favorable foreign currency impact to our Asia-Pacific income from operations primarily due to a generally weaker U.S. dollar relative to the Japanese Yen and Singapore Dollar during the nine months ended September 30, 2018 compared to the nine months ended September 30, 2017.
Interest Income. Interest income was $11.5 million and $9.8 million, respectively, for the nine months ended September 30, 2018 and 2017. The average annualized yield for the nine months ended September 30, 2018 was 1.12% versus 0.57% for the nine months ended September 30, 2017.
Interest Expense. Interest expense increased to $391.5 million for the nine months ended September 30, 2018 from $352.6 million for the nine months ended September 30, 2017, primarily attributable to our issuance of the €750.0 million 2.875% Euro Senior Notes due 2024 in March 2018 and $750 million 5.000% Infomart Senior Notes in April 2018. The increase was partially

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