Summary
Equinix Inc. (EQIX) has filed a Form 8-K to provide recast consolidated financial statements for its fiscal year ended December 31, 2016. This filing is primarily to reflect the retrospective adoption of several new accounting pronouncements during the first quarter of fiscal 2017. Notably, these changes primarily affect the presentation of cash flow statements, with no impact on consolidated balance sheets, statements of operations, or statements of stockholders' equity. The adoption of these standards, including ASU 2016-09 and ASU 2016-18, leads to adjustments in how stock compensation and restricted cash are reported, potentially increasing the dilutive effect on earnings per share and reclassifying certain cash flows. While the company emphasizes that this is not a restatement of previously issued financial statements, investors should be aware of the changes in cash flow reporting. The filing clarifies that while the financial statements have been adjusted, other sections of the 2016 Form 10-K, such as "Selected Financial Data" and "Management’s Discussion and Analysis," remain unrevised and may not be consistent with the recast financial information. Investors are advised to consult this 8-K, along with subsequent filings like the Form 10-Q for the period ended March 31, 2017, for a comprehensive understanding.
Key Highlights
- 1Equinix is recasting its 2016 consolidated financial statements, primarily impacting the Statement of Cash Flows.
- 2The recasting is due to the retrospective adoption of several new accounting pronouncements in Q1 2017.
- 3Adoption of ASU 2016-09 (Compensation - Stock Compensation) may lead to a more dilutive effect on earnings per share prospectively and changes in income tax cash flow presentation.
- 4Adoption of ASU 2016-18 (Statement of Cash Flows: Restricted Cash) requires including restricted cash in the reconciliation of total cash on the statement of cash flows.
- 5The changes have no impact on consolidated balance sheets, statements of operations, or statements of stockholders' equity.
- 6This filing is a recast of information, not a restatement of previously issued financial statements.
- 7Certain sections of the prior 2016 10-K (Selected Financial Data, MD&A) are not revised and may not be consistent with the recast financial statements.