Segment Data

9 Months Ended

Sep. 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
	Leasing		Leasing		Development		Other		Total

For the three months ended September 30, 2019	(in thousands)
Revenues	$	374,705	$	93,867	$	38,975	$	—	$	507,547
Cost of revenues ⁽²⁾		63,836		29,157		30,516		—		123,509
Operating profit		310,869		64,710		8,459		—		384,038
Selling, general, and administrative		21,840		8,626		4,183		7,623		42,272
Acquisition and new business initiatives related
adjustments and expenses		2,717		1,975		—		—		4,692
Asset impairment and decommission costs		6,027		2,213		—		—		8,240
Depreciation, amortization and accretion		132,650		40,208		660		1,469		174,987
Operating income (loss)		147,635		11,688		3,616		(9,092)		153,847
Other expense (principally interest expense
and other income (expense))								(135,083)		(135,083)
Income before income taxes										18,764
Cash capital expenditures ⁽³⁾		67,951		101,776		357		1,060		171,144

For the three months ended September 30, 2018
Revenues	$	353,502	$	81,758	$	31,961	$	—	$	467,221
Cost of revenues ⁽²⁾		66,862		25,432		24,447		—		116,741
Operating profit		286,640		56,326		7,514		—		350,480
Selling, general, and administrative		17,763		6,734		3,934		6,477		34,908
Acquisition and new business initiatives related
adjustments and expenses		1,887		1,108		—		—		2,995
Asset impairment and decommission costs		2,801		4,067		—		—		6,868
Depreciation, amortization and accretion		129,246		36,310		646		1,501		167,703
Operating income (loss)		134,943		8,107		2,934		(7,978)		138,006
Other expense (principally interest expense
and other income (expense))								(123,841)		(123,841)
Income before income taxes										14,165
Cash capital expenditures ⁽³⁾		33,794		120,176		425		666		155,061

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	Domestic Site		Int'l Site		Site
	Leasing		Leasing		Development		Other		Total

For the nine months ended September 30, 2019	(in thousands)
Revenues	$	1,106,722	$	273,036	$	121,229	$	—	$	1,500,987
Cost of revenues ⁽²⁾		194,525		84,642		92,606		—		371,773
Operating profit		912,197		188,394		28,623		—		1,129,214
Selling, general, and administrative		77,926		22,624		16,774		31,431		148,755
Acquisition and new business initiatives related
adjustments and expenses		4,698		4,971		—		—		9,669
Asset impairment and decommission costs		18,476		5,155		—		—		23,631
Depreciation, amortization and accretion		394,308		117,197		1,900		4,185		517,590
Operating income (loss)		416,789		38,447		9,949		(35,616)		429,569
Other expense (principally interest expense
and other income (expense))								(327,029)		(327,029)
Income before income taxes										102,540
Cash capital expenditures ⁽³⁾		242,660		149,704		2,165		2,259		396,788

For the nine months ended September 30, 2018
Revenues	$	1,041,892	$	253,794	$	86,160	$	—	$	1,381,846
Cost of revenues ⁽²⁾		199,633		79,167		67,693		—		346,493
Operating profit		842,259		174,627		18,467		—		1,035,353
Selling, general, and administrative		55,047		20,242		11,943		19,669		106,901
Acquisition and new business initiatives related
adjustments and expenses		5,242		3,929		—		—		9,171
Asset impairment and decommission costs		15,971		6,475		332		—		22,778
Depreciation, amortization and accretion		382,490		113,550		1,936		4,683		502,659
Operating income (loss)		383,509		30,431		4,256		(24,352)		393,844
Other expense (principally interest expense
and other income (expense))								(415,191)		(415,191)
Loss before income taxes										(21,347)
Cash capital expenditures ⁽³⁾		287,711		218,739		1,345		2,148		509,943



	Domestic Site		Int'l Site		Site
	Leasing		Leasing		Development		Other ⁽¹⁾		Total

Assets	(in thousands)
As of September 30, 2019	$	6,261,128	$	2,766,050	$	79,773	$	94,187	$	9,201,138
As of December 31, 2018	$	5,035,826	$	2,042,800	$	60,775	$	74,306	$	7,213,707

(1)Assets in Other 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 $168.6 million and $167.1 million for the nine months ended September 30, 2019 and

2018, respectively. Total long-lived assets in Brazil were $915.5 million and $1,031.6 million as of September 30, 2019 and December 31, 2018, respectively.