Prompt:
Human: A playback of today's call will be archived in our Investor Relations website located at investors.
dicks.com for approximately 12 months.
And finally, a couple of admin items.
First, a note on our same-store sales reporting practices.
Our consolidated same-store sales calculation include stores that were temporarily closed as a result of COVID-19.
The method of calculating comp sales varies across the retail industry, including the treatment of temporary store closures as a result of COVID-19.
Accordingly, our method of calculation may not be the same as other retailers.
We've never had quite a year like 2020.
We were challenged in numerous ways, as were so many others, but as an organization, we not only survived, we thrived.
The strength of our diverse category portfolio, technology capabilities and advanced omni-channel execution helped us capitalize on the favorable shifts in consumer demand across golf, outdoor activities, home fitness and active lifestyle.
For the full year, we delivered record sales and earnings.
Our consolidated same-store sales increased a record-setting 9.9%, which was on top of our 3.7% comp increase from the prior year.
And our non-GAAP earnings per diluted share of $6.12 represented a 66% increase over last year.
We developed innovative technology, including curbside pickup that set the pace for the retail industry and helped drive full year eCommerce sales of over $2.8 billion, an increase of 100%.
Most importantly, we cared for each other and our communities every step of the way.
As we reopened our stores, the health and safety of our teammates and athletes was our highest priority, and we established protocols and procedures to provide a safe shopping experience.
Our frontline hourly associates and distribution center teammates went above and beyond in 2020, and we showed our appreciation to our premium pay program.
In total, in 2020, we invested approximately $175 million across incremental teammate compensation and safety costs.
Additionally, last Friday, we partnered with Allegheny Health Network to host a COVID-19 vaccination clinic at our corporate headquarters.
As a result of this partnership, approximately 6,000 community members were vaccinated.
The largest single vaccination clinic in State of Pennsylvania to date.
We plan to host a number of these vaccination clinics in the future also.
We also recognize that youth sports programs have been severely hampered by the pandemic and low-income communities of color have been most impacted.
To help get these kids back on the field, we donated $30 million this year to our Sports Matter Foundation to help serve these impacted communities.
While the pandemic informed much of our ESG activity in 2020, we also increased our focus on caring for the planet.
Among other actions, this past year, we committed to become the sports retail sector lead of the Beyond the Bag Challenge, which aims to identify innovative solutions to replace today's single-use plastic retail bags in a way that is both sustainable and convenient for our customers.
We also joined the outdoor association's Climate Action Corp and committed to publishing climate-related goals in 2021.
Today, as Lauren and Lee talk about another strong quarter, I remain as committed and is excited about our business as I've ever been.
I'm extremely proud of how our teammates managed through this challenging year.
They came together to care for their communities, their families and each other.
At DICK's, it is our people who make us great, and I am so excited for our future and for what I know we will all accomplish together.
Now on to our results.
Our Q4 consolidated same-store sales increased 19.3%, which was on top of our 5.3% comp increase in the same period last year.
Our strong comps were supported by significant growth across each of our three primary categories of hardlines, apparel and footwear, as we continued to benefit from favorable shifts in consumer demand, as well as strong execution from our team.
From a channel standpoint, our brick-and-mortar stores comped positively for a second straight quarter, increasing mid-single digits and our eCommerce sales increased 57%, representing nearly one-third of our total business.
Within eCommerce, we continued to see the strongest growth across in-store pickup and curbside, which increased nearly 250% compared to BOPIS sales in the prior year.
These same-day services are fully enabled by our stores, which are the hub of our industry-leading omni-channel experience, both serving our in-store athletes and providing over 800 forward points of distribution for digital fulfillment.
In fact, during Q4, our stores enabled 90% of our total sales and fulfilled over 70% of our online sales, either through ship-from-store, in-store pickup, or curbside.
During Q4, we again remained very disciplined in our promotional strategy and cadence, and certain categories in the marketplace continued to be supply constrained.
As a result, we expanded our merchandise margin rate by 372 basis points.
This merchandise margin expansion drove a significant improvement in gross margin, which on a non-GAAP basis increased 507 basis points.
In total, our fourth quarter non-GAAP earnings per diluted share of $2.43 represented an 84% increase over last year.
It's clear that our strategies over the past several years are working and have helped us not only withstand the pandemic, but thrive, setting us up for long-term success.
As we enter 2021, our business has so much momentum, and we are pleased with the start to our year.
Our focus this year will center around enhancing our existing strategies to accelerate our core and enable long-term growth.
First within merchandising, our strategic partnerships with key brands have never been stronger, and we will continue to make big bets with important brand partners.
At the same time, we will continue to elevate our vertical brands.
As we've discussed on previous calls, our vertical brands have become a significant source of strength and growth.
During 2020, our vertical brands eclipsed $1.3 billion in sales, with comps outperforming the Company average by over 400 basis points.
Our DSG brand finished the year as our largest vertical brands and CALIA was again our second largest women's athletic apparel brands only behind Nike.
Furthermore, our vertical brands together represented the Company's largest brand in golf, fitness, outdoor equipment and team sports.
During 2021, we will invest in making our vertical brands even stronger, which will improve space in store and increase marketing, while expanding into additional product categories.
Later this month, we will augment our men's apparel collection by launching Burst [Phonetic], our new premium apparel brand that serves the modern athletic male.
Burst, which will only be available at DICK'S, will put us in a much stronger position to compete with similar offerings from premium apparel brands and specialty athletic apparel stores.
Also in 2021, we will build on our momentum from 2020 and drive growth in important categories, including golf, athletic apparel, footwear and team sports, as well as in fitness, we saw significant gains throughout the pandemic.
In 2020, our golf business across both DICK'S and Golf Galaxy was tremendous.
As the country's largest golf retailer, we are very well positioned to capitalize on increased participation and other favorable trends.
And in 2021, we will invest in TrackMan technology to enhance the fitting and lesson experience in our Golf Galaxy stores.
It will also enable online booking of lessons and club fittings, and we'll invest in talent to elevate our in-store service model.
Additionally in 2021, we plan to build on the strong results and momentum in our athletic apparel and footwear businesses.
Our athletic apparel assortment for 2021 is on trend, and we're excited to continue the energy in this category beyond the pandemic.
As part of this, we will convert over 100 additional stores to premium full-service footwear, taking this experience to over 60% of the DICK's chain.
We believe that these enhancements, along with strong consumer trends and improving allocations of the most in-demand styles, will drive continued positive results in our athletic apparel and footwear business.
Lastly, we expect our team sports business to provide a nice tailwind during 2021, as kids get back out on the field following a year in which many seasons were canceled.
Furthermore, we plan to reconceptualize our soccer business, an initiative we delayed last year because of COVID.
We will follow the same playbook we used to attack the baseball category in 2019, centered around more premium product, enhanced store experiences, and exceptional service.
Beyond merchandising, in 2021, we will focus on several key areas to enable the profitable growth of our business, including our omni-channel experience, data science and customer relationships.
Within our omni-channel experience, we will continue to lean on our stores as well as our eCommerce business to serve our customers whom we call athletes whenever, wherever and however they want.
As Ed mentioned earlier, in 2020, our eCommerce sales increased 100%, partially driven by our curbside service that we launched in March and continuously improved throughout the year.
Curbside pickup, along with fewer promotions and leverage of fixed costs, drove significant improvements in the profitability of our online channel in 2020.
In 2021, we expect curbside to remain a meaningful piece our omni-channel offering as our athletes turn to the service for speed and convenience.
In addition, the curbside will continue to improve our online shopping experience.
This includes leading with mobile, which for 2020 represented over 50% of our online sales.
This also includes shortening the path to purchase and reducing delivery times, as well as becoming a more consistent destination for our athletes' needs by offering a more integrated loyalty experience.
Beyond online shopping, through our game changer technology, we will enhance our scorekeeping and live streaming offering for youth sports with video on demand, all delivered through a premium subscription service.
We will also continue building relationships with both new and existing athletes in our stores and online.
In fact, the key to our omni-channel offering is our ScoreCard program, which in 2020 drove over 70% of total sales.
In 2021, we will continue to use data science to leverage our extensive athlete database to drive more personalized one-to-one marketing to increase loyalty among the 8.5 million new athletes that we acquired in 2020, including more than 2.5 million new athletes added during Q4.
Lastly, we are very excited to be opening our first experiential prototype store next week in Rochester, New York.
This new DICK's store called DICK's House of Sport will focus on service and community and allow us to innovate and deliver elevated experiences to our athletes, including an outdoor field to host sports events and from a product trial, a rock climbing wall and health and wellness basis for in-store programing.
It will serve as the test and learn center, and will roll the most successful elements into our core DICK'S stores.
As I look at our business, we are really in a great position.
Our brick-and-mortar stores and our technology platforms are working seamlessly together to deliver an industry-leading omni-channel experience.
We have world-class vertical brands and our vendor relationships with key partners have never been stronger.
We've become more athlete-centric focusing on friendly, knowledgeable and available service.
Importantly, we have a respected and loved brands, and are aligned behind our common purpose to create confidence and excitement by personally equipping all athletes to achieve their dreams.
In closing, we're extremely pleased with our Q4 and 2020 results and look forward to building on this success in 2021.
Let's begin with a brief review of our full-year 2020 results.
Consolidated sales increased 9.5% to $9.58 billion, even though stores were closed to foot traffic during the spring, representing 16% of our store days closed on average for the year.
Consolidated same-store sales increased a record-setting 9.9%.
And within this, we delivered a 100% increase in eCommerce sales.
And as a percent of total sales, our online business increased to 30% compared to 16% last year.
Gross profit for the full year was $3.05 billion, or 31.83% of net sales, and on a non-GAAP basis, improved 249 basis points from last year.
This improvement was driven by merchandise margin rate expansion of 204 basis points and leverage on fixed occupancy cost of 114 basis points, partially offset by shipping expenses resulting from meaningfully higher eCommerce sales growth.
Gross profit also included approximately $23 million of incremental COVID-related compensation and safety costs.
SG&A expenses were $2.3 billion, or 23.98% of net sales on a non-GAAP basis, and leveraged 25 basis points from last year, primarily driven by the significant sales increase.
SG&A dollars increased $178 million compared to last year's non-GAAP results, driven by $152 million of incremental COVID-related compensation and safety costs, as well as a $30 million donation we made to the DICK's Foundation to help jump-start youth sports program struggling to come back from the pandemic.
Apart from these items, increases in store payroll and operating expenses incurred to support the increase in sales were offset by expense reductions, including advertising during our temporary store closures.
Driven by our strong sales and merchandise margin rate expansion, non-GAAP EBT was $733.3 million, or 7.65% of net sales, and on a non-GAAP basis, increased $292.8 million, or 262 basis points from the same period last year.
In total, non-GAAP earnings per diluted share were $6.12, compared to non-GAAP earnings per diluted share of $3.69 last year, a 66% year-over-year increase.
Now moving to our Q4 results.
Consolidated net sales increased 19.8% to approximately $3.13 billion.
Consolidated same-store sales increased 19.3%, driven by a 20.3% increase in average ticket, partially offset by a 1% decrease in transactions.
Our eCommerce sales increased 57%.
And as a percent of total net sales, our online business increased to 32% compared to 25% last year.
And lastly, we delivered significant growth across each of our three primary categories, hardlines, apparel and footwear.
Gross profit in the fourth quarter was $1.05 billion, or 33.67% of net sales, and on a non-GAAP basis, improved 507 basis points compared to last year.
This improvement was driven by merchandise margin rate expansion of 372 basis points and leverage on fixed occupancy costs of 148 basis points.
The merchandise margin rate expansion was primarily driven by fewer promotions and lower clearance activity.
In terms of shipping expense, we saw higher costs from shipped packages due to increased volume and industrywide holiday surcharges.
However, the higher average ticket, combined with higher penetration of in-store and curbside pickup, neutralized this impact from a basis point perspective.
Specifically, for the fourth quarter, our curbside and in-store pickup sales increased nearly 250%.
SG&A expenses were $761.2 million, or 24.35% of net sales, and on a non-GAAP basis, increased $163 million or 142 basis points compared to last year.
27 basis points are attributable to the expense recognition associated with the change in value of our deferred comp plans, resulting from the increase in overall equity markets during the fourth [Phonetic] quarter.
This expense is fully offset in other income and has no net impact on earnings.
The balance of the deleverage was primarily due to $47 million of incremental COVID-related compensation and safety costs, as well as the $30 million donation we made to the DICK'S Foundation, most of which was in Q4.
These items were partially offset by leverage and other expenses from the significant sales increase.
Driven by our strong sales and merchandise margin rate expansion, non-GAAP EBT was $298.5 million, or 9.55% of net sales, and on a non-GAAP basis, increased $149.9 million or 385 basis points from the same period last year.
In total, we delivered non-GAAP earnings per diluted share of $2.43, compared to non-GAAP earnings per diluted share of $1.32 last year, an 84% year-over-year increase.
On a GAAP basis, our earnings per diluted share were $2.21.
This included $7.2 million in non-cash interest expense, as well as 6.7 million additional shares that will be offset by our bond hedge at settlement, but required in the GAAP diluted share calculation, both related to the convertible notes we issued in the first quarter.
Now moving on to our balance sheet.
We are in a strong financial position, ending Q4 with nearly $1.7 billion of cash and cash equivalents and no borrowings on our $1.85 billion revolving credit facility.
Our quarter-end inventory levels decreased 11% compared to the end of the same period last year.
Looking ahead, our inventory is very clean, and we'll continue to chase product to improve our in-stock positions in the most in-demand categories.
Turning to our fourth quarter capital allocation.
Net capital expenditures were $53 million, and we paid $27 million in quarterly dividends.
Now let me move on to our fiscal 2021 outlook for sales and earnings.
Due to the uneven nature of 2020, we planned 2021 off a 2019 baseline and for the same reason, believe it will be important to compare against both 2019 and 2020.
Furthermore, given the continued uncertainty around when athlete activities will normalize in 2021 and what the new normal will be, we'll be guiding to a wider range of possible outcomes that we typically do.
Let's start with the sales guidance, followed by EBT dollars and rate and then on to EPS.
For 2021, consolidated same-store sales are expected to be in the range of negative 2% to positive 2%, which, at the midpoint, represents a low double-digit sales increase versus 2019.
Our square footage versus 2019 is about the same.
We have been pleased with our sales trends so far this year.
And for the first quarter, we expect significant consolidated same-store sales and earnings growth, as we anniversary the majority of our temporary store closures from last year.
Beginning in Q2, our guidance assumes comps will decline in the range of high single-digits to low double-digits, as we anniversary more than 20% comp gain across those quarters in 2020.
Non-GAAP EBT is expected to be in the range of $550 million to $650 million, which at the midpoint and on a non-GAAP basis is up 36% versus 2019 and down 18% versus 2020.
At the midpoint, non-GAAP EBT margin is expected to increase over 100 basis points versus 2019 and decline approximately 150 basis points versus 2020.
Within this, gross margin is expected to increase versus 2019, driven by leverage on fixed expenses and higher merchandise margin.
When compared to 2020, gross margin is expected to decline, due primarily to gradually normalizing promotions and modest deleverage on fixed expenses beginning in the second quarter.
SG&A expense is expected to deleverage versus both 2019 and 2020.
Compared to 2019, SG&A is expected to deleverage, primarily due to hourly wage rate investments.
Compared to 2020, SG&A is expected to deleverage, primarily due to normalizing advertising expense as a percent of net sales.
Our guidance also contemplates approximately $30 million of COVID-related safety costs during the first half of the year.
The vast majority of which will fall in -- within SG&A.
In terms of our premium pay program for hourly and store -- hourly store and DC teammates, at the beginning of fiscal 2021, we transitioned to a more lasting compensation programs, including increasing and accelerating annual merit increases and higher wage minimums.
The impact of these programs has also been included within our guidance, but falls outside of the aforementioned COVID costs as these changes are now permanent.
Lastly, we anticipate non-GAAP earnings per diluted share to be in the range of $4.40 to $5.20, which at the midpoint and on a non-GAAP basis is up 30% versus 2019 and down 22% versus 2020.
This is lower than our traditional tax rate, and is due to the favorable tax impact of share-based payments expected to vest in 2021.
Our capital allocation plan includes net capital expenditures of $275 million to $300 million, which will be concentrated in improvements within our existing stores, ongoing investments in technology, as well as six new DICK's stores, six new specialty concept stores, and we will also convert two Field & Stream stores into Public Lands stores and relocate 11 DICK's stores.
In terms of returning capital to shareholders, today, we announced an increase in our quarterly dividend of 16% to $0.3625 per share or $1.45 on an annualized basis.
In addition, our plan includes a minimum of $200 million of share repurchases, the effect of which is included in our earnings per share guidance.
However, we will consider continuing to opportunistically repurchase shares beyond the $200 million.
In closing, we are extremely pleased with our 2020 results.
We are looking forward to continuing the success in 2021, and we -- we remain very enthusiastic about our business.
This concludes our prepared comments.
 Assistant:

Chosen response:
compname says q4 sales were $3.13 bln.
compname reports record fourth quarter and full year results; delivers 19.3% increase in fourth quarter same store sales.
q4 sales $3.13 billion versus refinitiv ibes estimate of $3.05 billion.
delivers 19.3% increase in q4 same store sales.
qtrly earnings per share $ 2.21.
sees fy earnings per share non-gaap $ 4.40 - $ 5.20.
plans to repurchase a minimum of $200 million of its common shares in 2021.


Prompt:
Human: During today's call, we will discuss GAAP and non-GAAP financial measures.
As for the content of today's call, Kevin will start with a discussion of the business, and Robert will follow with a recap of Dolby's financial results and provide our second quarter and fiscal 2022 outlook.
It continues to be a dynamic environment.
While revenue and earnings per share finished within our range of guidance, both were impacted by a $6 million negative true-up for lower-than-estimated unit shipments in our foundational audio technologies.
As we discussed last quarter, we are seeing year-over-year declines for foundational audio coming off of tough comps, and now issues with the supply chain.
But over the long term, we expect foundational audio to track roughly in line with market demand for the consumer devices we serve.
At the same time, we see strength across Dolby Vision, Dolby Atmos, and our imaging patents portfolio, and we remain confident in our ability to grow these revenues at a rate of over 35% this year.
We also see positive signs of momentum with Dolby.io.
All of this gives us confidence in the opportunity ahead.
Robert will take you through the details of the financials in just a moment.
I will start by covering our progress in Dolby Vision and Dolby Atmos.
At CES last month, we saw our partnership with Samsung grow stronger as they announced the adoption of Dolby Atmos into their TVs for the first time.
Samsung has been showcasing Dolby Atmos across their soundbar, PC, and mobile products for some time, and we are excited that they have decided to offer their TV customers the most immersive audio experience with Dolby Atmos.
During LG's CES keynote, they highlighted their latest OLED TVs, the first to support Dolby Vision gaming at 4K -- in 4K at 120 hertz.
And Hisense debuted their first short-throw consumer laser projectors to include the combined Dolby experience.
We saw new soundbar products from Samsung and Hisense supporting Dolby Atmos and the latest TVs from Sony, Panasonic, and TCL, all featuring the Dolby Vision and Dolby Atmos experience.
Also during the quarter, Walmart's On and Best Buy's Pioneer TVs began supporting Dolby Vision, an important step toward addressing the mass market retailer brands and making Dolby experiences more widely available at all price points.
Beyond the living room, we also made progress this quarter in PC, mobile, and gaming.
In November, ASUS adopted Dolby Vision with the launch of their new two-in-one PC, marking their first device to include the combined experience.
And more recently, they announced that their latest gaming laptops will also feature Dolby Vision and Dolby Atmos.
Dell announced at CES that they will now support the combined Dolby experience across their latest Alienware gaming PC lineup, and they launched a new Alienware gaming headset with Dolby Atmos.
Lenovo previewed their newly designed ThinkPad laptops, which feature Dolby Vision, Dolby Atmos, and Dolby Voice, expanding the number of models that include our communications technology.
This quarter also brought new tablets from Lenovo and ASUS and smartphones from Xiaomi and Motorola, highlighting Dolby Technologies.
We are also making strides in sports content.
Just this week, Comcast announced that they will be broadcasting the 2022 Winter Olympics in Dolby Vision and Dolby Atmos.
This major event adds to the growing list of sports coverage made available in Dolby.
And in the world of e-sports, the Honor of Kings Challenger Cup finals was available in Dolby Atmos on Tencent Video and Bilibili.
As we enable more Dolby experiences across music, gaming, and sports, we add to our value proposition for new and deeper adoption of Dolby Vision and Dolby Atmos across devices and end markets.
While CES was far from normal this year, what remain the same was the strong engagement from our partners and particularly in automotive.
This quarter, Neo highlighted that they will be adding Dolby Atmos into their ET5 model, expanding beyond the ET7 model they announced previously.
Consumers and artists alike continue to sing the praises of Dolby Atmos Music, with AMA's New Artist of the Year, Olivia Rodrigo, describing the experience as magical.
Two-thirds of the Top 100 billboard artists now have one or more tracks available in Dolby Atmos.
As we gain more prominence in the music space, we have more reasons for adoption across mobile, PC, and automotive.
Let me shift to cinema.
There are currently about 98% of Dolby Cinemas opened globally with six new sites launched during our fiscal Q1.
Even with the uncertainty of the pandemic, we saw ongoing recovery in the box office with titles like "No Time to Die" and "Spider-Man: No Way Home".
As moviegoers return to the cinema, we continue to see a preference toward premium experiences, and Dolby Cinema is the ultimate way to experience movies in the theater.
Let's talk about our developer platform, Dolby.io, where we are focused on enabling developers to create the most compelling experiences in target markets where we can offer the most differentiation, virtual live performances, online and hybrid events, social audio, premium education, gaming, and content production, which we estimate to represent a market opportunity of about $5 billion and growing.
We are excited about the experiences developers are building and the pace of new developer accounts accelerated this quarter.
This increased momentum is due in part to the interest we are seeing for our release of programmable spatial audio.
While we have been providing an automated spatial mix for some time, this highly requested feature allows developers to choose where to render real-time voices around the listener.
For example, we see developers building virtual concert experiences, virtual reality collaboration platforms, and virtual worlds in which listeners hear people from the location of the speaker or their avatar.
There has been so much demand customers were going into production on the beta ahead of our general availability release this week.
We also completed an acquisition this quarter.
With Millicast, developers can take the highly interactive experiences they build with Dolby.io and stream them to audiences of more than 60,000 people with ultra-low delay, a capability that is in demand in our focused verticals.
Millicast has a notable presence in content production with companies such as NBC, the NFL, and Disney and their expertise in the field makes them a great fit with Dolby.io.
With our unique experience in media and communications, coupled with the ease of self-service on our platform, we are able to expand our capabilities for developers to offer high-quality audio and visual interactions to much larger audiences.
To wrap up, while we are still operating in an uncertain economic environment, we continue to have success in growing the number of Dolby Atmos and Dolby Vision experiences to new devices and services.
There is much opportunity ahead of us as we enable new experiences through music, gaming, and live content.
And we are excited about bringing the Dolby magic to a broader range of experiences and interactions with the power of Dolby.io.
All of this gives us confidence in our ability to drive revenue and earnings growth into the future.
And with that, I'd like to hand it over to Robert to take us through the financials.
Let's jump into the results for Q1.
Total revenue in the first quarter of $352 million was in the range we provided and included a negative true-up of about $6 million for Q4 2021 shipments reported that were below the original estimate.
The negative true-up was primarily in foundational revenue in our gaming and consumer electronics markets.
On a year-over-year basis, first quarter revenue was about $38 million below last year's Q1 as we benefited from a $21 million true-up in Q1 2021, which is a $6 million negative true-up in Q1 2022, and the prior year also benefited from timing of revenues under contract.
These factors were partially offset by higher adoption of Dolby Atmos, Dolby Vision, and imaging patents within our fiscal Q1 of 2022.
Q1 revenue was comprised of $332.3 million in licensing and $19.3 million in products and services.
Let's get into the year-over-year trends in licensing revenue by end market.
Broadcast represented 37% of total licensing in fiscal Q1.
Broadcast revenues declined by about $18 million or 13% from the prior-year Q1 due to timing of revenue and a larger true-up in the prior year and lower recoveries.
These factors were partially offset by higher adoption of Dolby Atmos and Dolby Vision in TVs and new licenses in our imaging patent programs.
Mobile represented 23% of total licensing in fiscal Q1.
Mobile decreased by $31 million or 29% compared to Q1 of last year as our foundational audio revenues last year benefited from both high recoveries and timing of revenues under contract, partially offset by new imaging patent licenses.
We do see mobile growing for the full year, which I'll cover later.
Consumer electronics represented about 17% of total licensing in fiscal Q1.
On a year-over-year basis, Q1 CE licensing increased by approximately $6 million or 11%, driven by higher foundational audio revenues for DMAs and soundbars, as well as higher recoveries.
We also saw growth from higher adoption of Dolby Atmos and Dolby Vision across CE devices.
These favorable factors were partially offset by the large true-up in the prior year.
PC represented about 10% of total licensing in fiscal Q1.
Our Q1 PC revenues increased by 6% or $2 million compared to the prior-year Q1.
This increase was driven by new imaging patent licensees, along with higher Dolby Vision adoption.
Other markets represented about 13% of total licensing in fiscal Q1.
They were essentially flat year over year as lower revenues from gaming and lower foundational audio patent revenue were essentially offset by higher revenues from Dolby Cinema.
Beyond licensing, our products and services revenue in Q1 was $19 million, compared to $70 million in last year's Q1.
The year-over-year increase reflects ongoing improvements in the cinema industry globally.
Total gross margin in the first quarter was 90.7% on a GAAP basis and 91.3% on a non-GAAP basis.
Operating expenses in the first quarter on a GAAP basis were $228.3 million, compared to $189.8 million in Q1 of the prior year.
This increase was primarily caused by a gain of the sale of an asset in the prior year, higher marketing activations tied to Atmos Music and Dolby Live at Park MGM and the extra week of payroll in Q1 2022.
Operating expenses in the first quarter on a non-GAAP basis were $195.1 million, compared to $167.1 million in the prior year.
Operating expenses were in line with our guidance for Q1.
Operating income in the first quarter was $90.6 million on a GAAP basis or 25.8% of revenue, compared to $164.7 million or 42.3% of revenue in Q1 of last year.
Operating income in the first quarter on a non-GAAP basis was $126 million or 35.8% of revenue, compared to $189.7 million or 48% of revenue in Q1 last year.
The income tax rate in Q1 was 13% on a GAAP basis and 18% on a non-GAAP basis.
Our GAAP rate benefited primarily from a discrete adjustment related to stock-based compensation.
Net income on a GAAP basis in the first quarter was $80 million or $0.77 per share per diluted share compared to $135.2 million or $1.30 per diluted share in last year's Q1.
Net income on a non-GAAP basis in the first quarter was $104.5 million or $1.01 per diluted share, compared to $153.3 million, or $1.48 per diluted share in Q1 of last year.
During the first quarter, we generated $32 million in cash from operations, compared to $82 million generated in last year's fiscal Q1.
We ended the first quarter with about $1.26 billion in cash and investments.
During the first quarter, we bought back about 400,000 shares of our common stock at the end of the quarter with $256 million of stock repurchase authorization available.
As is typically the case, our window for repurchases in fiscal Q1 were shorter due to the timing of release of our year-end results.
In February, our board authorized an additional $250 million of stock buyback, bringing our total authorization to approximately $506 million to enable expansion of our share buyback program.
We also announced today a cash dividend of $0.25 per share.
The dividend will be payable on February 23, 2022, to shareholders of record on February 16, 2022.
Shifting to the remainder of the fiscal year.
There continues to be uncertainty given the ongoing implications of the pandemic, particularly as it relates to trends in unit shipments that are impacted by supply chain issues and inflation and consumer spending behavior.
All of these variables make it more difficult to gather consistent and reliable data.
We are also keeping an eye on transaction cycle times, particularly in our recovery efforts, given the -- given the ongoing travel restrictions caused by the pandemic.
With that, let me take you through the outlook for Q2 and the full year.
For Q2, we see total revenues ranging from $315 million to $345 million.
Within that, licensing revenues could range from $300 million to $325 million.
The revenue increase from last year's Q2 is anticipated to be driven by -- primarily by higher broadcast and PC revenues from Dolby Vision and Dolby Atmos.
The other markets category is also expected to be up year over year, assuming continued improved attendance at our Dolby Cinemas.
Mobile is anticipated to be relatively flat to prior year as higher revenue from Atmos and Vision is essentially offset by lower foundational audio revenue.
Q2 products and services revenue could range from $15 million to $20 million.
Let me move on to the rest of the P&L outlook for Q2.
Q2 gross margin on a GAAP basis is expected to be 89%, plus or minus, and the non-GAAP gross margin is estimated to be about 90%, plus or minus.
Operating expenses in Q2 on a GAAP basis are estimated to range from $224 million to $236 million.
Included in this range is approximately $5 million to $7 million of restructuring charges, primarily for severance and related benefits as we adjusted resources toward the areas where we see the largest opportunities.
Operating expenses in Q2 on a non-GAAP basis are estimated to range from $190 million to $200 million, which contemplates the impact of our annual merit increase.
Other income is projected to be around $1 million for the second quarter.
And our effective tax rate for Q2 is projected to range from 19% to 20% on a GAAP basis and 18% to 19% on a non-GAAP basis.
Based on the combination of factors I just covered, we estimate that Q2 diluted earnings per share could range from $0.42 to $0.57 on a GAAP basis and from $0.72 to $0.87 on a non-GAAP basis.
Moving on to the full year.
We are maintaining our fiscal '22 total revenue guidance of $1.34 billion to $1.4 billion.
This was a result in about 5% to 9% of year-over-year growth as compared to the $1.28 billion in fiscal year '21.
Within this, licensing revenues could range from $1.260 billion to $1.315 billion, compared to $1.214 billion in fiscal year '21, which will result in a 4% to 8% year-over-year growth.
We still anticipate that licensing revenue growth in fiscal '22 will be driven by Atmos, Vision, and imaging patents across all end markets.
Our other markets category is still expected to grow over 25%, primarily from Dolby Cinema and to a lesser extent, from gaming, followed by PC and mobile, which we expect to grow mid- to high single digits.
And our CE and broadcast markets are anticipated to be relatively flat year over year as growth from Atmos, Vision, and imaging patents is essentially offset by decreases in foundational revenue.
Products and services revenue are expected to range from $75 million to $90 million for fiscal year '22 with improvements in Cinema products and growth in Dolby.io.
Gross margins for fiscal year '22 are expected to be relatively consistent with fiscal year '21.
With the restructuring charge expected in Q2, operating expenses in fiscal 2022 can now range from $877 million to $897 million on a GAAP basis.
On a non-GAAP basis, the expected operating expense range remains unchanged at $750 million to $770 million.
As we said last quarter, our business model remains very strong as we expect to deliver operating margins between 24% to 26% on a GAAP basis and between 34% and 36% on a non-GAAP basis.
Based on the factors above, we estimate the full year diluted earnings per share now range from $2.50 to $3 on a GAAP basis.
On a non-GAAP basis, full year diluted earnings per share remains unchanged at $3.52 to $4.02.
With that, let's move on to Q&A.
Operator, can you please queue up the first question?
 Assistant:

Chosen response:
compname reports q1 non-gaap earnings per share of $1.01.
q1 non-gaap earnings per share $1.01.
q1 gaap earnings per share $0.77.
sees q2 diluted earnings per share to range from $0.72 to $0.87 on a non-gaap basis.
sees q2 total revenue to range from $315 million to $345 million.
sees q2 diluted earnings per share to range from $0.42 to $0.57 on a gaap basis.
sees 2022 total revenue to range from $1.34 billion to $1.40 billion.
sees 2022 diluted earnings per share to range from $2.50 to $3.00 on a gaap basis.
sees 2022 diluted earnings per share to range from $3.52 to $4.02 on a non-gaap basis.


Prompt:
Human: Chief Investment Officer Greg Wright, Chief Technology Officer Chris Sharp, and Chief Revenue Officer Corey Dyer are also on the call and will be available for Q&A.
For further discussion of risks related to our business, see our 10-K and subsequent filings with the SEC.
Reconciliations to net income are included in the supplemental package furnished to the SEC and available on our website.
We further strengthened connections with customers, landing record new logos and delivering our fourth consecutive quarter with over $100 million of bookings.
We also continued to deliver for our customers around the world despite volatility in the global supply chain, leveraging our scale, diversification, and strategic procurement processes to continue to deliver on time and on budget for our customers.
We continued to enhance our global platform by expanding into new markets with tremendous growth potential while continuing to expand capacity in existing markets around the world.
We delivered solid financial results, with double-digit revenue growth, leading to a beat in the current quarter and a race to the outlook for the balance of the year.
Last but not least, we further strengthened our balance sheet by raising approximately $600 million of low coupon Swiss green bonds and over $1 billion of common equity to fund our future growth.
Our formula for long-term value creation is a global, connected, sustainable framework, and we made further progress on each front during the third quarter.
We continued to globalize our business, with significant bookings and solid performance across regions.
Our bookings were diversified by both region and product type, reflecting our unique, full-spectrum global product offering.
We also announced our entry into two high potential emerging markets, India and Nigeria, during the third quarter while expanding our connectivity capabilities by working with Zayo to develop the largest open fabric-of-fabrics that will interconnect key centers of data exchange.
We are also extending our capabilities for customers to the edge with the announcement of what will be one of a few strategic partnerships in this arena.
Let's discuss our sustainable growth initiatives on Page 3.
During the third quarter, Digital Realty was honored to be recognized by GRESB as an overall global sector leader in the technology and science category for exemplary ESG performance, receiving a coveted five-star rating from this leading global ESG benchmarking organization and reflecting Digital Realty's commitment to being a global leader in ESG.
We also became a U.N. Global Compact signatory in September, aligning our ESG goals and commitment to the U.N. Sustainable Development Goals with a global initiative.
We also advanced our sustainable financing strategy, raising our first-ever Swiss green bonds and publishing the allocation of $440 million of proceeds from our September 2020 Euro green bond, which funded sustainable data center development projects in four countries across three continents, certified in accordance with leading sustainable rating standards.
We are committed to minimizing our impact on the environment while simultaneously meeting the needs of our customers, our investors, our employees, and broader society while advancing our goal of delivering sustainable growth for all of these stakeholders.
While on the topic of energy, I'm pleased to report that Digital Realty experienced only a small negative impact from the substantial rise in energy costs during the third quarter.
In Europe, where concerns of an energy crisis were most acute, we typically contract for energy supplies a year or more in advance, providing price visibility and certainty for our customers.
Elsewhere around the world, energy costs are typically passed through to customers, minimizing our direct exposure.
We continue to keep a close eye on energy prices.
But given the resiliency of our business model, we do not expect rising energy costs to impact our reported results by more than a few pennies.
Let's turn to our investment activity on Page 4.
We continue to invest in our global platform.
As previously announced, we entered into a joint venture with Brookfield to expand PlatformDIGITAL into India, a giant underserved market, with the fifth largest GDP in the world.
Like many emerging markets, India presents some unique challenges, underscoring the need for local knowledge and experience.
To that end, we were pleased to announce the hiring of Seema Ambastha as CEO for the India joint venture.
Seema has years of experience in the Indian IT sector broadly and in the data center industry specifically where she most recently served as a senior executive leader with the NTT Netmagic data center business across India.
We believe the India data center market has the potential to experience significant growth over the next decade, and we're thrilled to have such a strong partner and strong leader in this exciting new venture.
During the third quarter, we continued to expand iColo, our Kenyan data center operator, acquiring a land parcel in Mozambique to build a facility position to land subsea cables and other connectivity-focused customers.
We also acquired a controlling interest in Medallion Communications, the leading colocation and interconnection provider in Nigeria, in partnership with our existing African partner, Pembani Remgro.
As the African internet economy matures, we expect Nigeria will represent a significant growth opportunity given its large and relatively young population, a growing and diversifying economy, as well as a maturing regulatory environment.
Given the connectivity Africa from our existing hub in Marseille, our platform will now offer the market-leading destinations, connecting Africa to Europe and beyond.
We're also investing to organically expand our capacity.
As of September 30, we had 44 projects underway around the world, totaling almost 270 megawatts of incremental capacity, with over 250 megawatts scheduled for delivery before the end of 2022.
We continue to invest most heavily in EMEA, where we now have 27 projects underway in 15 different markets, totaling 150 megawatts of incremental capacity, most of which is highly connected, including significant expansions in Frankfurt, Marseille, Paris, and Zurich.
Our investment in organic development is a reflection of the strength of demand across EMEA.
We're being a bit more selective in North America.
We're seeing strong demand in Portland, where we have a 30-megawatt facility under construction that is 100% preleased and scheduled for delivery in the first quarter of next year, while we also have significant projects underway in Northern Virginia, New York, and Toronto.
Finally, in Asia-Pacific, we continue to pursue strong, organic development, both on our own and with our joint venture partners.
We are adding capacity in Hong Kong that will open this quarter and expect to open Korea's first carrier-neutral facility in Seoul in early 2022.
We are building a connected campus in Seoul to provide the full spectrum of solutions for our customers.
The larger second facility will accommodate up to 64 megawatts of capacity and will be located within 25 kilometers of our first facility.
Let's turn to the macro environment on Page 5.
We are fortunate to be operating in a business levered to secular demand drivers, and our leadership position provides us with unique vantage point to detect developing trends as they emerge globally on PlatformDIGITAL.
Just over a year ago, we introduced the Data Gravity Index, our market intelligence tool that forecasts the growing intensity of the enterprise data creation lifecycle and its gravitational impact on global IT infrastructure.
Earlier this year, we published an industry manifesto, enabling connected data communities to guide cross-industry collaboration, tackle data gravity head-on, and unlock a new era of growth opportunity.
Recent third-party research continues to support the growing relevance of data gravity.
According to ITC, the amount of digital data created over the next five years will be greater than twice the amount of data created since the advent of digital storage.
This digital data creation is expected to drive exponential growth in enterprise user data aggregation, storage, and exchange, providing a powerful tailwind for data center demand.
We continue to see enterprise and service provider customers deploying their own data hubs and using interconnection to securely exchange data in multiple metros on PlatformDIGITAL to accommodate their own data creation growth.
Recently, for the second consecutive year, Digital Realty was ranked as the only outperformer and global leader by GigaOm for edge colocation.
This ranking reflects our continued innovation and the execution of our PlatformDIGITAL roadmap for delivering global differentiated capabilities and value for our customers and partners.
We are honored by the strong validation of our platform and our market-leading innovation to capture the growing global demand opportunity from data-driven businesses.
Let's turn to our leasing activity on Page 7.
For the second straight quarter, we signed total bookings of 113 million.
This time, with a 12 million contribution from interconnection.
Deal mix was consistent with the prior four-quarter average, sub-1 megawatt deals plus interconnection represented about 40% of the total, while larger deals represented around 60%.
Space and power bookings were also well diversified by region, with EMEA and APAC contributing 45% of our total, about the same as the Americas, with interconnection accounting for the remaining 10%.
The weighted average lease term was a little over five and a half years, and we landed a record 140 new logos during the third quarter, with strong showings across all regions, demonstrating the power of our global platform.
In terms of specific wins during the quarter and around the world, a leading cloud-native cybersecurity platform is expanding its high-performance computing capabilities by leveraging PlatformDIGITAL in four markets across North America and Europe, connecting with cloud providers, improving performance, and driving down cost.
A market-leading autonomous driving technology developer partnering with Digital Realty to tailor an innovative and unique infrastructure solution for simulation workloads.
Two major North American energy firms chose Digital Realty to leverage our geographic reach and rearchitect their network to interconnect with cloud providers and implement security controls as part of their hybrid IT strategy.
A public university in the Eastern U.S. is launching a Global Research Initiative with other universities in EMEA and deploying PlatformDIGITAL network hubs across two continents in three cities to help enable this project.
A maker of high-performance computing systems is expanding their footprint by deploying on PlatformDIGITAL across multiple regions to guarantee GDPR compliance while enhancing their security, performance, and sustainability.
And finally, a Global 500 fintech provider is expanding their own hybrid IT availability zones into multiple new metros, using PlatformDIGITAL to support their data-intensive and high-performance computing requirements.
Turning to our backlog on Page 9.
The current backlog of leases signed but not yet commenced rose from 303 million to 330 million, and our third-quarter signings more than offset commencements.
The lag between signings and commencements was down slightly from last quarter at just over seven months.
Moving on to renewal leasing activity on Page 10.
We signed 223 million of renewal leases during the third quarter, our largest ever renewal quarter, in addition to new leases signed.
The weighted average lease term on renewals signed during the quarter was a little over three and a half years.
Renewal rates for sub-1 megawatt deals remain consistently positive, greater than the megawatt renewals were skewed by our largest deal of the core that combined a sizable 30-megawatt renewal with our largest new deal for the quarter, which will land entirely in existing currently vacant or soon to be vacant capacity across Chicago and Ashburn.
Excluding this one transaction, our cash mark-to-market would have been a positive 1%.
This multifaceted transaction was a prime example of what we mean when we talk about our holistic long-term approach to customer relationship management.
We believe we have a distinct advantage when we are competing for new business with a customer that we are already supporting elsewhere within our global portfolio.
And whenever we can, we try to ride a comprehensive financial package across multiple locations and offerings, including both new business, as well as renewals.
In terms of first-quarter operating performance, reported portfolio occupancy ticked down by 50 basis points, largely driven by the sale of fully leased assets during the quarter.
Upon commencement of the large combination renewal expansion list I mentioned a moment ago, portfolio occupancy is expected to improve by 70 basis points.
Same capital cash NOI growth was negative 5.5% in the third quarter, primarily driven by a spike in property taxes in Chicago, where local assessors have adopted a very aggressive posture, along with the impact of the Ashburn churn event in January.
Of the 70 megawatts we got back on January 1st, approximately 80% has since been released to multiple large and growing customers.
As a reminder, the Westin Building in Seattle, the Interxion platform in EMEA, Lamda Hellix in Greece, and Altus IT in Croatia are not yet included in the same-store pool.
So, these same capital comparisons are less representative of our underlying business today than usual.
And while we're still in the early stages of our budgeting process, we are optimistic in terms of where our same-store and allied growth goals for 2022.
Turning to our economic risk mitigation strategies on Page 11.
The U.S. dollar strengthened during the third quarter, providing a small FX headwind in the third quarter.
As a reminder, we manage currency risk by issuing locally denominated debt to act as a natural hedge, so only our net assets within a given region are exposed to currency risk from an economic perspective.
Our Swiss green bond offering during the quarter is a good example of this.
In addition to managing credit risk and foreign currency exposure, we also mitigate interest rate risk by proactively terming out short-term variable rate debt with longer-term fixed-rate financing.
Given our strategy of matching the duration of our long-lived assets with long-term fixed-rate debt, a 100-basis-point move in [Inaudible] would have approximately a 50-basis-point impact on full-year FFO per share.
Our near-term funding and refinancing risk is very well managed and our capital plan is fully funded.
In terms of earnings growth, third-quarter core FFO per share was up 7% on both a year over year and sequential basis, driven by strong operational execution, cost controls, and a reduction in financing costs from the debt refinancings and redemptions of preferred stock over the past year.
To avoid any confusion, our core FFO outperformance excludes the benefit of a nearly $20 million promote fee received in connection with the monetization of our joint venture with Prudential.
Heading into the final quarter of the year, we have solid momentum, so we are raising our full-year outlook for revenue, adjusted EBITDA, and core FFO per share to reflect this underlying momentum in our business.
Last but certainly not least, let's turn to the balance sheet on Page 12.
We continue to recycle capital by disposing of assets that have limited growth prospects, raising over 100 million in the third quarter for our 20% position in the Prudential JV and some land in Arizona.
We also raised approximately 95 million of common equity under our ATM program in July, as well as 950 million of common equity in a September forward equity offering.
Our reported leverage ratio remains at six times, but including committed proceeds from the September forward equity offering, the leverage ratio drops to 5.6 times, while our fixed charge coverage improves to six times.
We continued to execute our financial strategy of maximizing the menu of available capital options while minimizing the related costs and extending the duration of our liabilities to match our long-lived assets.
Our two capital markets transaction this quarter are examples of our prudent approach to balance sheet management.
This successful execution against our financing strategy reflects the strength of our global platform, which provides access to the full menu of public as well as private capital, sets us apart from our peers, and enables us to prudently fund our growth.
As you can see from the chart on Page 13, our weighted average debt maturity is over six years and our weighted average coupon is down to 2.2%.
dollar-denominated, reflecting the growth of our global platform while also acting as a natural FX hedge for investments outside the U.S. Over 90% of our debt is fixed rate, guarding against a rising rate environment.
And 98% of our debt is unsecured, providing the greatest flexibility for capital recycling.
Finally, as you can see from the left side of Page 14, we have a clear runway with nominal near-term debt maturities and no bar too tall in the out years.
Our balance sheet is poised to weather a storm but also positioned to fuel growth opportunities for our customers around the globe, consistent with our long-term financing strategy.
Operator, would you please begin the Q&A session?
 Assistant:

Chosen response: q3 revenue rose 11 percent to $1.1 billion.


Prompt:
Human: For a further discussion of the risks related to our business, please see our 10-K and subsequent filings with the SEC.
Reconciliations to net income are included in the supplemental package furnished to the SEC and available on our website.
We further strengthened connections with customers with $156 million of new bookings with record results in both a zero to 1 megawatt and greater than a megawatt category and ended the year with $500 million in new bookings, a 15% increase over the prior year.
We also continue to enhance our global platform with the completion of organic development projects in multiple metros despite the continued challenges presented by the pandemic and the global supply chain in addition to strategic investments, establishing Digital Realty as the leading pan-African provider.
Financially, we had a solid quarter with full year results above the high end of the guidance range that we provided this time last year.
And finally, we continue to strengthen our balance sheet by raising equity capital through the establishment of Digital Core REIT in a highly successful IPO on the Singapore Stock Exchange and the related sale of a 90% interest in 10 fully utilized core data centers.
As a perpetual capital partner, Digital Realty and Digital Core REIT can continue to work together while providing our customers with a seamless experience.
Our formula for long-term value creation is a global, connected, sustainable framework.
And we made further progress on each front during the fourth quarter.
First, we continue to globalize our business with record global bookings and strength across all regions and all product types, including quarterly highs in both our sub-1 megawatt and greater than 1 megawatt categories.
We also announced two significant global initiatives.
First, in December, we announced the successful listing of Digital Core REIT as a stand-alone publicly traded company on the Singapore Stock Exchange.
and Canada, valued at $1.4 billion at a 4.25% cap rate.
We generated net proceeds of over $950 million from the transaction, and we retained a 35% equity interest in the publicly traded REIT.
The offering was very well received, and Digital Core REIT has traded up approximately 30% since the IPO, enhancing the gain on our remaining ownership stake.
In addition to providing investors a stable cash flow stream from a portfolio of high-quality core data centers, Digital Core REIT offers key strategic benefits to Digital Realty.
First, Digital Core REIT is a perpetual capital partner.
It has a long-term investment horizon and a global mandate to invest in stabilized income-producing data centers.
Second, Digital Core REIT has been carefully crafted to provide a seamless customer experience.
Digital Core REIT is sponsored by and externally managed by Digital Realty.
We will continue to manage the properties providing the same level of operational excellence, and we will earn fees for asset and property management, as well as acquisitions, dispositions and development.
From a customer perspective, nothing changes when we contribute an asset to Digital Core REIT.
Third, Digital Core REIT is an ideal partner vehicle for Digital Realty.
We expect to contribute additional stabilized core assets to Digital Core REIT in the future, and we may also co-invest alongside Digital Core REIT on future investment activity.
Finally, our interests are aligned.
As mentioned, Digital Realty will continue to own a 10% direct ownership stake in each of the assets in addition to 35% in the publicly traded vehicle.
Digital Core REIT is led by two longtime Digital Realty team members, John Stewart, who most of you know well, along with an Dan Tith.
We are excited about their opportunity to create value for Digital Core REIT unitholders, including Digital Realty.
Our second global initiative, which we announced just after quarter end, is the definitive agreement to acquire roughly a 55% stake in Teraco, Africa's leading carrier-neutral colocation provider.
This acquisition immediately establishes Digital Realty as the leading colocation and interconnection provider on the high-growth African continent and builds upon our earlier investments in Africa with iColo, in both Kenya and Mozambique and in Medallion in Nigeria.
Teraco complements these investments, as well as our highly connected facilities in the Mediterranean by hosting the key strategic landing endpoints for subsea cables circling Africa.
From Marseille and Athens in the North; Mombasa and Maputo along the east; Durban and Cape Town in the South; and Lagos along the Western Coast, PlatformDIGITAL is supporting the growth of our customers, as well as the broader digital transformation of the entire African continent.
Teraco has seven state-of-the-art data centers across three key metros in South Africa and serves over 600 customers, including more than 275 connectivity providers, over 25 cloud and content platforms and approximately 300 enterprises.
Teraco facilitates approximately 22,000 interconnections between customers and hosts seven cloud on-ramps and provides direct access to seven subsea cables.
Teraco has historically generated healthy double-digit growth in revenue and EBITDA.
In addition, more than half of Teraco's in-service portfolio was developed within the past two years.
The current development pipeline will expand the existing asset base by over 25%.
And Teraco owns land adjacent to its highly connected campuses in Johannesburg and Cape Town that will support another doubling of the in-place capacity, representing significant embedded growth potential and providing considerable runway to support our customers' growth.
Leading global cloud and content platforms have recently begun making significant investments in Africa, given the existing capacity within the in-service portfolio, the incremental capacity currently under construction and the strategic landholdings to support future expansion.
Teraco is uniquely positioned to support the expected growth of digital infrastructure in Africa over the next several years.
Let's discuss our sustainable growth initiatives on Page 3.
During the fourth quarter, Digital Realty earned Nareit's Leader in the Light Award for the fifth consecutive year, complementing the company's five-star GRESB rating and top ranking within the technology and science sector.
Digital Realty was also named one of America's Most Responsible Companies by Newsweek and was the No.
1 ranked data center company.
We continue to advance our sustainable financing strategy, recasting and upsizing our credit facility with improved terms while incorporating a sustainability-linked pricing component with pricing subject to adjustment based on annual performance against certain green targets.
We are committed to minimizing our impact on the environment, while simultaneously meeting the needs of our customers, our investors and our employees, along with the broader society and advancing our goal of delivering sustainable growth for all these stakeholders.
Let's turn to our investment activity on Page 4.
We continue to invest in the expansion of our global platform.
In addition to the Teraco transaction, we've grown our presence along the Eastern Coast of Africa with iColo and supplemented our acquisition of Medallion data centers in Nigeria with two land purchases in Lagos for future development.
Over the next decade, we expect to see huge opportunity for global businesses to tap into Africa's rapidly growing internet economy, and Digital Realty is uniquely positioned to enable this growth.
We also continue to invest in the organic growth of our platform.
We spent $580 million on growth capex in the fourth quarter, our largest quarterly growth capex investment to date.
We currently have 44 projects underway, totaling more than 250 megawatts of IT capacity in 27 metros around the world.
This capacity was 46% presold as of year-end.
Geographically, we continue to invest most heavily in EMEA with 27 projects underway, totaling more than 140 megawatts across 16 metros.
In Asia Pacific, we delivered several development projects during the fourth quarter, including facilities in Singapore and Hong Kong.
In January, we opened Digital Seoul 1, our first data center in South Korea and the first carrier-neutral facility in the country.
This facility will serve as a connectivity gateway for latency-sensitive customer workloads, but can be connected to hyperscale applications hosted in our second facility in Korea, totaling over 60 megawatts of capacity currently under construction just outside the city center.
The two facilities will be tied together with fiber to create a connected campus and will complement each other by providing solutions for the full customer spectrum, from small performance sensitive co-location customers to huge hyperscale deployments.
In North America, our development pipeline is diversified by product mix, as well as geographically with projects underway in seven different markets.
We continue to see strong hyperscale demand in Hillsboro, while we are expanding in Downtown Atlanta to bring on additional colocation capacity at one of the most highly connected destinations in the Southeastern United States.
We are bringing capacity online in both these markets, among others, given the robust demand backdrop and our tightening inventory position.
Let's turn to the macro environment on Page 5.
We're fortunate to be operating in a business levered to secular demand drivers.
Our leadership position provides us with a unique vantage point to detect secular trends as they emerge globally on platformDIGITAL.
Our customers continue to solve some of the most complex IT infrastructure connectivity and data integration challenges.
We are witnessing a growing trend of multinational companies across all segments, deploying and connecting large, private data infrastructure footprints on PlatformDIGITAL across multiple regions and metros globally.
Industry research firm Gartner recently updated their global IT spending forecast for 2022, projecting a 5.1% increase to $4.5 trillion, driven by companies investing in digital data growth strategies.
Additionally, Gartner believes that by 2024, 75% of organizations will have deployed multiple data hubs to drive mission-critical data analytics sharing and governance in support of digital data growth strategies.
These forecasts are consistent with our view of where the puck is headed.
Our market intelligence tool, the Data Gravity Index, forecasts similar growth in the intensity of data creation and its gravitational pull on global IT infrastructure.
In addition, our industry manifesto, enabling connected data communities serves as the global playbook for industry collaboration to tackle data gravity challenges head on and unlock a new era of growth opportunity for all companies.
Digital Realty was recently named company of the year by Frost & Sullivan for North American data center best practices.
This award reflects our continued focus on operational excellence, underpinned by continuous innovation and execution of the PlatformDIGITAL road map.
We are honored by the strong validation of the differentiated value proposition we are creating for customers and partners.
Given the resiliency of the demand drivers underpinning our business, and the relevance of our platform in meeting these needs, we believe we are well-positioned to continue to deliver sustainable growth for customers, shareholders and employees, whatever the macro environment may hold in store.
Let's turn to our leasing activity on Page 7.
As Bill noted, we delivered record bookings of $156 million with an $11 million contribution from interconnection during the fourth quarter.
Volume was elevated across both of our primary reporting categories in the quarter with a healthy mix between enterprise and hyperscale business.
For the full year, we booked $0.5 billion of new business with roughly a 60-40 split between greater than 1 megawatt and less than 1 megawatt plus interconnection.
The EMEA region had a particularly strong quarter accounting for approximately 60% of total bookings led by Frankfurt with standout performance across product types.
The fourth quarter was also notable for the strength of cross-selling between regions.
Nearly 30% of our sub-1 megawatt plus interconnection bookings were exported from one region to another, a strong indication of the value customers derive from our global platform.
Not surprisingly, the Americas was our biggest exporter with most deals landing in EMEA, followed by APAC.
Both EMEA and APAC had strong export quarters as well, with over 15% of their sub-1-megawatt plus interconnection bookings landing out of region.
The weighted average lease term was nearly 10 years primarily driven by hyperscale pre-leasing in EMEA.
We landed over 130 new logos during the fourth quarter, our second best quarterly result and just shy of last quarter's record 140 for our full year total of 480 new logos.
We are encouraged by the consistent organic growth of our customer base, and we view these results as strong validation of platform digital and our global strategy.
In terms of specific wins during the quarter and around the world, Graphcore, a British semiconductor company that develops accelerators and systems for AI and machine learning, selected PlatformDIGITAL to address their density, security and scale requirements.
The initial deployment will land in Amsterdam to be followed by a global rollout, and we are also collaborating on solution engineering and joint go-to-market activities.
A leading high-frequency trading shop is expanding on PlatformDIGITAL to extend their high-performance computing platform across two continents and expand trading into two new international metros, while approving cloud access and business continuity state side.
A Global 2000 U.S. energy provider is expanding with Digital Realty, consolidating their own on-premise facilities and using PlatformDIGITAL to scale their business across multiple metros.
A leading aerospace manufacturing and services company is expanding on PlatformDIGITAL, leveraging dense interconnection to support data exchange across four new markets.
A Global 2000 insurance brokerage is consolidating their data center footprint and has adopted PlatformDIGITAL to remove data gravity barriers and interconnect with clouds across multiple metros.
An IVY League university is expanding on PlatformDIGITAL to exit their own on-premise facility and enhance their access to the healthcare provider community for data exchange.
And finally, a major APAC food services organization selected PlatformDIGITAL to improve cloud connectivity and leverage the local centers of data exchange in Japan.
Turning to our backlog on Page 9.
The current backlog of leases signed but not yet commenced rose from $330 million to $378 million as our fourth -- record fourth quarter signings more than offset commencements.
The lag between signings and commencements was unusually high at nearly 14 months, primarily driven by long-term leases on recent development starts in EMEA as customers accelerated efforts to secure a long-term runway for growth against a backdrop of steadily dwindling inventory.
Moving on to renewal leasing activity on Page 10.
We signed $151 million of renewal leases during the fourth quarter in addition to the record new leases signed.
The weighted average lease term on renewals signed during the fourth quarter was nearly four years.
Renewal rates rolled down 4%, driven by a handful of large deals in North America as negative releasing spreads on greater than 1 megawatt renewals more than offset the positive releasing spreads on the sub-1 megawatt renewals.
In terms of operating performance, overall portfolio occupancy ticked down 60 basis points, almost entirely due to development deliveries placed in service during the quarter.
Same capital cash NOI growth was negative 6.6% in the fourth quarter, primarily driven by churn in North America, as well as higher property operating and net utilities expense.
As a reminder, the 2021 same-store pool did not include the Westin Building in Seattle, the Interxion platform in Rijk, Lamda Hellix in Greece or Altus IT in Croatia.
Each of these businesses will be included in the same-store pool beginning in the first quarter of 2022, and each is expected to contribute to improving same-store growth going forward, partially offset by higher property taxes, as well as FX headwinds expected in 2022.
Turning to our economic risk mitigation strategies on Page 11.
The U.S. dollar strengthened during the fourth quarter relative to prior year exchange rates, and FX represented roughly a 130 basis point headwind to the year-over-year growth in our reported results from the top to the bottom line.
As a reminder, we manage currency risk by issuing locally denominated debt to act as a natural hedge, so only our net assets within a given region are exposed to the currency risk from an economic perspective.
In addition to managing credit risk and foreign currency exposure, we also mitigate interest rate risk by proactively terming out short-term variable rate debt with longer-term fixed rate financing.
Given our strategy of matching the duration of our long-lived assets with long-term fixed-rate debt, a 100 basis point move in base rates would have roughly a 50 basis point impact on our full year FFO per share.
Our near-term funding and refinancing risk is very well managed with a well-diversified menu of public and private capital sources available to fund the growth of our business.
In terms of earnings growth, fourth quarter core FFO per share was up 4% year over year and up 1% sequentially, driven by solid operational execution, cost controls and a reduction in financing costs due to proactive balance sheet management over the past 12 months.
For the full year, core FFO per share was up 5% year over year and came in $0.03 above the high end of our initial guidance range, which did not contemplate the contribution of $1.4 billion of assets through Digital Core REIT in early December.
As a reminder, full year core FFO per share excludes the $20 million promote fee on the Prudential joint venture in the third quarter, as well as the $25 million PPA settlement in the first quarter.
Looking ahead to 2022, we expect core FFO per share will be between $6.80 and $6.90, including the 1% dilution from Teraco, as well as 100 to 200 basis points of expected FX headwinds due to the strength of the dollar relative to 2021.
We expect to deliver revenue between $4.7 billion and $4.8 billion in 2022 and adjusted EBITDA of approximately $2.5 billion.
Given the tightened supply environment, we expect flat cash renewal rates in 2022, up from slightly negative in 2021.
And we expect overall portfolio occupancy to remain within the current range despite the significant new capacity scheduled to come online during the year in addition to the embedded lease-up potential within the Teraco portfolio.
We are off to a great start on our financing plans for the year with a highly successful 750 million bond offering in early January of 10.5-year paper at 1.375% coupon.
Finally, we expect to raise $500 million to $1 billion from capital recycling whether through contributions to Digital Core REIT, noncore asset sales to third parties or a combination of both.
In terms of the quarterly dividend, the distribution policy is ultimately a board-level decision.
Given the continued growth in our cash flows and taxable income, we would expect to see continued growth in the per share dividend, just as we have had each and every year since our IPO in 2004.
Last, but certainly not least, let's turn to the balance sheet on Page 12.
As of year-end, our reported leverage ratio stood at 6.1 times, while fixed charge coverage was 5.4 times.
Pro forma for settlement of the $1 billion September forward equity offering, leverage drops to 5.7 times, while fixed charge coverage also improved to 5.7 times.
We continue to execute on our financial strategy of maximizing the menu of available capital options while minimizing the related costs and extending the duration of our liabilities to match our long-lived assets.
As Bill previously mentioned, we recast our credit facility during the fourth quarter, upsizing from $2.35 billion to $3 billion, extending the maturity by three years and tightening pricing by 5 basis points.
We also incorporated a sustainability-linked pricing component subject to adjustment based on annual performance targets, further demonstrating our commitment to sustainable business practices.
Subsequent to quarter end, we raised approximately $850 million from the 10.5-year euro bonds at 1.375%, and we used a portion of the proceeds to redeem all $450 million of our outstanding 4.75% U.S. dollar bonds due 2025.
This successful execution against our financing strategy reflects the strength of our global platform, which provides access to the full menu of public, as well as private capital, sets us apart from our peers and enables us to prudently fund our growth.
As you can see from the chart on Page 13, our weighted average debt maturity is over six years and our weighted average coupon is just over 2%.
A little over three-quarters of our debt is non-U.S. dollar denominated, reflecting the growth of our global platform while also acting as a natural FX hedge for our investments outside the U.S. 94% of our debt is fixed rate, guarding against a rising rate environment, and 99% of our debt is unsecured, providing the greatest flexibility for capital recycling.
Finally, as you can see from the left side of Page 13, we have a clear runway with nominal near-term debt maturities and no bar too tall in the out years.
Our balance sheet is poised to weather a storm, but also positioned to fuel growth opportunities for our customers around the globe, consistent with our long-term financing strategy.
Operator, would you please begin the Q&A session?
 Assistant:

Chosen response:
introduced 2022 core ffo per share outlook of $6.80-$6.90.
reported net income available to common stockholders of $3.71 per share in 4q21.
digital realty reported revenues for q4 of 2021 of $1.1 billion, a 2% decrease from previous quarter.