Segment Data

6 Months Ended

Jun. 30, 2019

14.SEGMENT DATA

The Company operates principally in two business segments: site leasing and site development. The Company’s site leasing business includes two reportable segments, domestic site leasing and international site leasing. The Company’s business segments are strategic business units that offer different services. They are managed separately based on the fundamental differences in their operations. The site leasing segment includes results of the managed and sublease businesses. The site development segment includes the results of both consulting and construction related activities. The Company’s Chief Operating Decision Maker utilizes segment operating profit and operating income as his two measures of segment profit in assessing performance and allocating resources at the reportable segment level. The Company has applied the aggregation criteria to operations within the international site leasing segment on a basis that is consistent with management’s review of information and performance evaluations of the individual markets in this region.

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Revenues, cost of revenues (exclusive of depreciation, accretion and amortization), capital expenditures (including assets acquired through the issuance of shares of the Company’s Class A common stock) and identifiable assets pertaining to the segments in which the Company continues to operate are presented below.



	Domestic Site		Int'l Site		Site		Not Identified
	Leasing		Leasing		Development		by Segment		Total

For the three months ended June 30, 2019	(in thousands)
Revenues	$	369,180	$	89,823	$	41,144	$	—	$	500,147
Cost of revenues ⁽²⁾		65,576		27,884		30,988		—		124,448
Operating profit		303,604		61,939		10,156		—		375,699
Selling, general, and administrative		27,193		8,310		6,885		13,136		55,524
Acquisition and new business initiatives related
adjustments and expenses		1,272		1,267		—		—		2,539
Asset impairment and decommission costs		8,815		805		—		—		9,620
Depreciation, amortization and accretion		131,413		38,194		678		1,279		171,564
Operating income (loss)		134,911		13,363		2,593		(14,415)		136,452
Other expense (principally interest expense
and other income (expense))								(88,871)		(88,871)
Income (loss) before income taxes										47,581
Cash capital expenditures ⁽³⁾		113,200		18,411		883		624		133,118

For the three months ended June 30, 2018
Revenues	$	346,683	$	83,201	$	26,439	$	—	$	456,323
Cost of revenues ⁽²⁾		67,756		25,932		20,726		—		114,414
Operating profit		278,927		57,269		5,713		—		341,909
Selling, general, and administrative		17,944		6,894		3,932		7,173		35,943
Acquisition and new business initiatives related
adjustments and expenses		1,570		1,563		—		—		3,133
Asset impairment and decommission costs		6,444		906		54		—		7,404
Depreciation, amortization and accretion		129,786		37,560		648		1,564		169,558
Operating income (loss)		123,183		10,346		1,079		(8,737)		125,871
Other expense (principally interest expense
and other income (expense))								(201,511)		(201,511)
Income (loss) before income taxes										(75,640)
Cash capital expenditures ⁽³⁾		182,898		21,507		653		846		205,904

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	Domestic Site		Int'l Site		Site		Not Identified
	Leasing		Leasing		Development		by Segment		Total

For the six months ended June 30, 2019	(in thousands)
Revenues	$	732,017	$	179,169	$	82,254	$	—	$	993,440
Cost of revenues ⁽²⁾		130,690		55,485		62,089		—		248,264
Operating profit		601,327		123,684		20,165		—		745,176
Selling, general, and administrative		56,086		13,998		12,591		23,808		106,483
Acquisition and new business initiatives related
adjustments and expenses		1,980		2,996		—		—		4,976
Asset impairment and decommission costs		12,449		2,942		—		—		15,391
Depreciation, amortization and accretion		261,657		76,989		1,240		2,716		342,602
Operating income (loss)		269,155		26,759		6,334		(26,524)		275,724
Other expense (principally interest expense
and other income (expense))								(191,947)		(191,947)
Income (loss) before income taxes										83,777
Cash capital expenditures ⁽³⁾		174,710		47,928		1,808		1,199		225,645

For the six months ended June 30, 2018
Revenues	$	688,390	$	172,036	$	54,199	$	—	$	914,625
Cost of revenues ⁽²⁾		132,772		53,734		43,246		—		229,752
Operating profit		555,618		118,302		10,953		—		684,873
Selling, general, and administrative		37,284		13,508		8,009		13,192		71,993
Acquisition and new business initiatives related
adjustments and expenses		3,356		2,821		—		—		6,177
Asset impairment and decommission costs		13,169		2,408		332		—		15,909
Depreciation, amortization and accretion		253,244		77,240		1,290		3,182		334,956
Operating income (loss)		248,565		22,325		1,322		(16,374)		255,838
Other expense (principally interest expense
and other income (expense))								(291,351)		(291,351)
Income (loss) before income taxes										(35,513)
Cash capital expenditures ⁽³⁾		253,917		98,563		920		1,482		354,882



	Domestic Site		Int'l Site		Site		Not Identified
	Leasing		Leasing		Development		by Segment ⁽¹⁾		Total

Assets	(in thousands)
As of June 30, 2019	$	6,430,796	$	2,639,217	$	70,874	$	128,528	$	9,269,415
As of December 31, 2018	$	5,035,826	$	2,042,800	$	60,775	$	74,306	$	7,213,707

(1)Assets not identified by segment consist primarily of general corporate assets.

(2)Excludes depreciation, amortization, and accretion.

(3)Includes cash paid for capital expenditures and acquisitions and financing leases.

Other than Brazil, no foreign country represented a material amount of the Company’s total revenues in any of the periods presented. Site leasing revenue in Brazil was $111.9 million and $115.6 million for the six months ended June 30, 2019 and 2018, respectively. Total long-lived assets in Brazil were $1,006.1 million and $1,031.6 million as of June 30, 2019 and December 31, 2018, respectively.