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SEC Filings

10-Q
EQUINIX INC filed this Form 10-Q on 05/03/2019
Entire Document
 
EQUINIX, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
(Unaudited)

Balance Sheet
 
Balances at December 31, 2018
 
Adjustments due to adoption of Topic 842
 
Balances at January 1, 2019
Assets
 
 
 
 
 
 
Other current assets
 
$
274,857

 
$
(15,949
)
 
$
258,908

Property, plant and equipment, net
 
11,026,020

 
(293,111
)
 
10,732,909

Operating lease right-of-use assets
 

 
1,468,762

 
1,468,762

Intangible assets, net
 
2,333,296

 
(23,205
)
 
2,310,091

Other assets
 
533,252

 
(63,468
)
 
469,784

Liabilities
 
 
 
 
 
 
Current portion of operating lease liabilities
 

 
144,405

 
144,405

Current portion of finance lease liabilities
 

 
70,795

 
70,795

Current portion of capital lease and other financing obligations
 
77,844

 
(77,844
)
 

Other current liabilities
 
126,995

 
(6,455
)
 
120,540

Operating lease liabilities, less current portion
 

 
1,312,262

 
1,312,262

Finance lease liabilities, less current portion
 

 
1,165,188

 
1,165,188

Capital lease and other financing obligations, less current portion
 
1,441,077

 
(1,441,077
)
 

Other liabilities
 
629,763

 
(88,272
)
 
541,491

Equity
 
 
 
 
 
 
Retained Earnings
 
889,948

 
(5,973
)
 
883,975

2.
Revenue
Contract Balances
The following table summarizes the opening and closing balances of the Company's accounts receivable, net; contract asset, current; contract asset, non-current; deferred revenue, current; and deferred revenue, non-current (in thousands):
 
Accounts receivable, net
 
Contract asset, current
 
Contract asset, non-current
 
Deferred revenue, current
 
Deferred revenue, non-current
Beginning balances as of January 1, 2019
$
630,119

 
$
9,778

 
$
16,396

 
$
73,142

 
$
46,641

Closing balances as of March 31, 2019
703,835

 
9,753

 
16,543

 
76,240

 
45,401

Increase/(decrease)
$
73,716

 
$
(25
)
 
$
147

 
$
3,098

 
$
(1,240
)
The difference between the opening and closing balances of the Company's accounts receivable, net, contract assets and deferred revenues primarily results from revenue growth and the timing difference between the satisfaction of the Company's performance obligation and the customer's payment. The amounts of revenue recognized during the three months ended March 31, 2019 from the opening deferred revenue balance was $44.1 million.
Remaining performance obligations
As of March 31, 2019, approximately $7.2 billion of total revenues and deferred installation revenues are expected to be recognized in future periods, the majority of which will be recognized over the next 24 months. While initial contract terms vary in length, substantially all contracts thereafter automatically renew in one-year increments. Included in the remaining performance obligations is either 1) remaining performance obligations under the initial contract terms or 2) remaining performance obligations related to contracts in the renewal period once the initial terms have lapsed. The remaining performance obligations do not include variable consideration related to unsatisfied performance obligations such as the usage of metered power or any contracts that could be terminated without any significant penalties such as the majority of interconnection revenues. The remaining performance obligations above include revenues to be recognized in the future related to arrangements where the Company is the lessor.

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