8-KOther EventsExhibits & Filings

DIGITAL REALTY TRUST, INC. 8-K Report, Corporate Update (Nov 19, 2009)

Filed November 19, 2009For Securities:DLRDLR-PJDLR-PKDLR-PL

Summary

Digital Realty Trust, Inc. (DLR) has filed a Form 8-K on November 19, 2009, to report a retrospective reclassification of its consolidated financial statements for the years ended December 31, 2008, 2007, and 2006. This reclassification is necessitated by the adoption of new accounting standards on January 1, 2009: FASB Staff Position No. APB 14-1 concerning convertible debt instruments and FASB No. 160 regarding noncontrolling interests. The primary impact of this filing is the revision of previously reported financial data within the company's 2008 Annual Report on Form 10-K. Specifically, the reclassification affects the consolidated balance sheets for December 31, 2007 and 2008, and the consolidated statements of operations for 2006, 2007, and 2008. Investors should note that while this filing revises historical financial statements, it does not incorporate any events or developments that have occurred since the initial filing of the 2008 10-K.

Key Highlights

  • 1Digital Realty Trust (DLR) is retrospectively reclassifying its consolidated financial statements for fiscal years 2006, 2007, and 2008.
  • 2The reclassification is due to the adoption of new accounting standards: FASB APB 14-1 (Convertible Debt) and FASB 160 (Noncontrolling Interests).
  • 3Previously reported financial data in the 2008 Form 10-K is being updated to reflect these accounting changes.
  • 4The filing revises balance sheets as of December 31, 2007 and 2008, and statements of operations for the years 2006, 2007, and 2008.
  • 5Specific financial statement notes and selected financial data sections are also updated.
  • 6The company clarifies that this filing only addresses the reclassification and does not include subsequent events or developments beyond the original 2008 10-K filing date.
  • 7Revised disclosures regarding long-term incentive units and other share-based compensation are also included.

Frequently Asked Questions

This 8-K filing is made to retrospectively reclassify Digital Realty Trust's (DLR) consolidated financial statements for the years 2006, 2007, and 2008. This is a necessary step due to the company's adoption of new accounting standards, specifically FASB APB 14-1 regarding convertible debt and FASB 160 concerning noncontrolling interests, effective January 1, 2009.

The filing revises the consolidated balance sheets as of December 31, 2007 and 2008, and the consolidated statements of operations for the fiscal years ended December 31, 2006, 2007, and 2008. These revisions are reflected within the company's 2008 Annual Report on Form 10-K.

No, this filing specifically addresses the retrospective reclassification of historical financial statements due to accounting standard adoptions. It does not include any information about events or developments that have occurred since the filing of the 2008 Form 10-K. For subsequent information, investors should refer to DLR's later filings, such as Quarterly Reports on Form 10-Q and other Current Reports on Form 8-K.

The reclassification is directly related to the adoption of FASB APB 14-1, which affects the accounting for convertible debt instruments, and FASB 160, which impacts the reporting of noncontrolling interests. While the filing revises how these items are presented in the financial statements, it does not appear to announce new debt issuance or equity transactions. The filing also mentions revised disclosures about long-term incentive units and share-based compensation.