x | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the quarterly period ended September 30, 2016. |
¨ | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. |
Delaware | 65-0723837 | |
(State or other jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer | x | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
Page Nos. | |||
PART I. FINANCIAL INFORMATION | |||
Item 1. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
PART II. OTHER INFORMATION | |||
Item 1. | |||
Item 1A. | |||
Item 6. | |||
PART I. | FINANCIAL INFORMATION |
ITEM 1. | UNAUDITED CONSOLIDATED AND CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
September 30, 2016 | December 31, 2015 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 530,358 | $ | 320,686 | ||||
Restricted cash | 150,655 | 142,193 | ||||||
Accounts receivable, net | 273,907 | 227,354 | ||||||
Prepaid and other current assets | 415,836 | 306,235 | ||||||
Total current assets | 1,370,756 | 996,468 | ||||||
PROPERTY AND EQUIPMENT, net | 10,452,038 | 9,866,424 | ||||||
GOODWILL | 4,997,224 | 4,091,805 | ||||||
OTHER INTANGIBLE ASSETS, net | 11,557,964 | 9,837,876 | ||||||
DEFERRED TAX ASSET | 197,914 | 212,041 | ||||||
DEFERRED RENT ASSET | 1,265,700 | 1,166,755 | ||||||
NOTES RECEIVABLE AND OTHER NON-CURRENT ASSETS | 813,931 | 732,903 | ||||||
TOTAL | $ | 30,655,527 | $ | 26,904,272 | ||||
LIABILITIES | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable | $ | 105,551 | $ | 96,714 | ||||
Accrued expenses | 571,989 | 516,413 | ||||||
Distributions payable | 236,608 | 210,027 | ||||||
Accrued interest | 108,077 | 115,672 | ||||||
Current portion of long-term obligations | 242,992 | 50,202 | ||||||
Unearned revenue | 254,336 | 211,001 | ||||||
Total current liabilities | 1,519,553 | 1,200,029 | ||||||
LONG-TERM OBLIGATIONS | 18,436,144 | 17,068,807 | ||||||
ASSET RETIREMENT OBLIGATIONS | 965,087 | 856,936 | ||||||
DEFERRED TAX LIABILITY | 792,139 | 106,333 | ||||||
OTHER NON-CURRENT LIABILITIES | 1,068,121 | 959,349 | ||||||
Total liabilities | 22,781,044 | 20,191,454 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
REDEEMABLE NONCONTROLLING INTERESTS | 1,100,202 | — | ||||||
EQUITY: | ||||||||
Preferred stock: $.01 par value; 20,000,000 shares authorized; | ||||||||
5.25%, Series A, 6,000,000 shares issued and outstanding; aggregate liquidation value of $600,000 | 60 | 60 | ||||||
5.50%, Series B, 1,375,000 shares issued and outstanding, respectively; aggregate liquidation value of $1,375,000 | 14 | 14 | ||||||
Common stock: $.01 par value; 1,000,000,000 shares authorized; 428,431,558 and 426,695,279 shares issued; and 425,621,532 and 423,885,253 shares outstanding, respectively | 4,284 | 4,267 | ||||||
Additional paid-in capital | 9,817,815 | 9,690,609 | ||||||
Distributions in excess of earnings | (1,030,663 | ) | (998,535 | ) | ||||
Accumulated other comprehensive loss | (1,876,374 | ) | (1,836,996 | ) | ||||
Treasury stock (2,810,026 shares at cost) | (207,740 | ) | (207,740 | ) | ||||
Total American Tower Corporation equity | 6,707,396 | 6,651,679 | ||||||
Noncontrolling interests | 66,885 | 61,139 | ||||||
Total equity | 6,774,281 | 6,712,818 | ||||||
TOTAL | $ | 30,655,527 | $ | 26,904,272 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
REVENUES: | ||||||||||||||||
Property | $ | 1,497,936 | $ | 1,212,849 | $ | 4,191,779 | $ | 3,429,264 | ||||||||
Services | 16,909 | 25,061 | 54,340 | 62,211 | ||||||||||||
Total operating revenues | 1,514,845 | 1,237,910 | 4,246,119 | 3,491,475 | ||||||||||||
OPERATING EXPENSES: | ||||||||||||||||
Costs of operations (exclusive of items shown separately below): | ||||||||||||||||
Property (including stock-based compensation expense of $426, $396, $1,325 and $1,218, respectively) | 485,525 | 356,082 | 1,280,386 | 929,624 | ||||||||||||
Services (including stock-based compensation expense of $172, $99, $578 and $336, respectively) | 5,712 | 9,307 | 22,007 | 22,863 | ||||||||||||
Depreciation, amortization and accretion | 397,999 | 341,096 | 1,137,398 | 932,972 | ||||||||||||
Selling, general, administrative and development expense (including stock-based compensation expense of $19,628, $17,850, $68,309 and $70,697, respectively) | 131,537 | 114,832 | 405,086 | 354,460 | ||||||||||||
Other operating expenses | 14,998 | 15,668 | 37,509 | 40,891 | ||||||||||||
Total operating expenses | 1,035,771 | 836,985 | 2,882,386 | 2,280,810 | ||||||||||||
OPERATING INCOME | 479,074 | 400,925 | 1,363,733 | 1,210,665 | ||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Interest income, TV Azteca, net of interest expense of $279, $40, $846 and $780, respectively | 2,742 | 2,993 | 8,206 | 8,251 | ||||||||||||
Interest income | 6,376 | 4,503 | 16,378 | 11,871 | ||||||||||||
Interest expense | (190,160 | ) | (149,787 | ) | (531,076 | ) | (446,228 | ) | ||||||||
Gain (loss) on retirement of long-term obligations | — | — | 830 | (78,793 | ) | |||||||||||
Other expense (including unrealized foreign currency losses of $8,321, $77,864, $3,544 and $107,871, respectively) | (12,260 | ) | (66,659 | ) | (25,894 | ) | (123,291 | ) | ||||||||
Total other expense | (193,302 | ) | (208,950 | ) | (531,556 | ) | (628,190 | ) | ||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 285,772 | 191,975 | 832,177 | 582,475 | ||||||||||||
Income tax provision | (22,037 | ) | (94,235 | ) | (94,671 | ) | (132,063 | ) | ||||||||
NET INCOME | 263,735 | 97,740 | 737,506 | 450,412 | ||||||||||||
Net loss (income) attributable to noncontrolling interests | 774 | 5,259 | (10,288 | ) | 1,960 | |||||||||||
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION STOCKHOLDERS | 264,509 | 102,999 | 727,218 | 452,372 | ||||||||||||
Dividends on preferred stock | (26,781 | ) | (26,781 | ) | (80,344 | ) | (63,382 | ) | ||||||||
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION COMMON STOCKHOLDERS | $ | 237,728 | $ | 76,218 | $ | 646,874 | $ | 388,990 | ||||||||
NET INCOME PER COMMON SHARE AMOUNTS: | ||||||||||||||||
Basic net income attributable to American Tower Corporation common stockholders | $ | 0.56 | $ | 0.18 | $ | 1.52 | $ | 0.93 | ||||||||
Diluted net income attributable to American Tower Corporation common stockholders | $ | 0.55 | $ | 0.18 | $ | 1.51 | $ | 0.92 | ||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||||||
BASIC | 425,517 | 423,375 | 424,831 | 417,280 | ||||||||||||
DILUTED | 429,925 | 427,227 | 429,019 | 421,352 | ||||||||||||
DISTRIBUTIONS DECLARED PER COMMON SHARE | $ | 0.55 | $ | 0.46 | $ | 1.59 | $ | 1.32 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Net income | $ | 263,735 | $ | 97,740 | $ | 737,506 | $ | 450,412 | ||||||||
Other comprehensive (loss) income: | ||||||||||||||||
Changes in fair value of cash flow hedges, net of tax benefit of $0, $9, $0 and $18, respectively | (432 | ) | 710 | (367 | ) | 365 | ||||||||||
Reclassification of unrealized (gains) losses on cash flow hedges to net income, net of tax benefit of $0, $20, $0 and $66, respectively | (108 | ) | 158 | (173 | ) | 2,771 | ||||||||||
Foreign currency translation adjustments, net of tax (benefit) expense of ($1,495), ($12,863), $5,388 and ($25,275), respectively | (91,608 | ) | (600,798 | ) | (43,282 | ) | (1,077,788 | ) | ||||||||
Other comprehensive loss | (92,148 | ) | (599,930 | ) | (43,822 | ) | (1,074,652 | ) | ||||||||
Comprehensive income (loss) | 171,587 | (502,190 | ) | 693,684 | (624,240 | ) | ||||||||||
Comprehensive (income) loss attributable to noncontrolling interests | (12,454 | ) | 807 | (5,844 | ) | 37,930 | ||||||||||
Comprehensive income (loss) attributable to American Tower Corporation stockholders | $ | 159,133 | $ | (501,383 | ) | $ | 687,840 | $ | (586,310 | ) |
Nine Months Ended September 30, | ||||||||
2016 | 2015 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net income | $ | 737,506 | $ | 450,412 | ||||
Adjustments to reconcile net income to cash provided by operating activities | ||||||||
Depreciation, amortization and accretion | 1,137,398 | 932,972 | ||||||
Stock-based compensation expense | 70,212 | 72,251 | ||||||
(Gain) loss on early retirement of long-term obligations | (830 | ) | 78,793 | |||||
Other non-cash items reflected in statements of operations | 120,170 | 143,412 | ||||||
Decrease in restricted cash | 4,126 | 19,971 | ||||||
Increase in net deferred rent balances | (51,762 | ) | (69,019 | ) | ||||
Increase in assets | (8,863 | ) | (106,535 | ) | ||||
(Decrease) increase in liabilities | (29,526 | ) | 21,358 | |||||
Cash provided by operating activities | 1,978,431 | 1,543,615 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Payments for purchase of property and equipment and construction activities | (475,174 | ) | (518,018 | ) | ||||
Payments for acquisitions, net of cash acquired | (1,309,915 | ) | (1,616,205 | ) | ||||
Payment for Verizon transaction | (4,748 | ) | (5,058,895 | ) | ||||
Proceeds from sale of short-term investments and other non-current assets | 4,459 | 1,002,214 | ||||||
Payments for short-term investments | — | (1,011,320 | ) | |||||
Deposits, restricted cash, investments and other | (824 | ) | (2,053 | ) | ||||
Cash used for investing activities | (1,786,202 | ) | (7,204,277 | ) | ||||
CASH FLOW FROM FINANCING ACTIVITIES | ||||||||
(Repayments of) proceeds from of short-term borrowings, net | (7,337 | ) | 8,282 | |||||
Borrowings under credit facilities | 1,529,477 | 5,727,831 | ||||||
Proceeds from issuance of senior notes, net | 3,236,383 | 1,492,298 | ||||||
Proceeds from term loan | — | 500,000 | ||||||
Proceeds from other borrowings | 70,806 | — | ||||||
Proceeds from issuance of securities in securitization transaction | — | 875,000 | ||||||
Repayments of notes payable, credit facilities, senior notes, term loan and capital leases | (4,116,645 | ) | (6,092,710 | ) | ||||
(Distributions to) contributions from noncontrolling interest holders, net | (700 | ) | 4,449 | |||||
Proceeds from stock options and ESPP | 76,601 | 29,324 | ||||||
Distributions paid on common stock | (651,966 | ) | (516,012 | ) | ||||
Distributions paid on preferred stock | (80,344 | ) | (57,866 | ) | ||||
Proceeds from the issuance of common stock, net | — | 2,440,327 | ||||||
Proceeds from the issuance of preferred stock, net | — | 1,337,946 | ||||||
Payment for early retirement of long-term obligations | (125 | ) | (86,107 | ) | ||||
Deferred financing costs and other financing activities | (29,423 | ) | (30,314 | ) | ||||
Cash provided by financing activities | 26,727 | 5,632,448 | ||||||
Net effect of changes in foreign currency exchange rates on cash and cash equivalents | (9,284 | ) | 2,126 | |||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 209,672 | (26,088 | ) | |||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 320,686 | 313,492 | ||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 530,358 | $ | 287,404 | ||||
CASH PAID FOR INCOME TAXES (NET OF REFUNDS OF $16,219 AND $5,206, RESPECTIVELY) | $ | 71,868 | $ | 130,231 | ||||
CASH PAID FOR INTEREST | $ | 516,382 | $ | 472,079 | ||||
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||
Decrease in accounts payable and accrued expenses for purchases of property and equipment and construction activities | $ | (36,609 | ) | $ | (6,703 | ) | ||
Purchases of property and equipment under capital leases | $ | 37,049 | $ | 19,870 | ||||
Settlement of accounts receivable related to acquisitions | $ | — | $ | 735 |
Preferred Stock - Series A | Preferred Stock - Series B | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Distributions in Excess of Earnings | Noncontrolling Interest | Total Equity | ||||||||||||||||||||||||||||||||||||||||
Issued Shares | Amount | Issued Shares | Amount | Issued Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||
BALANCE, JANUARY 1, 2015 | 6,000,000 | $ | 60 | — | $ | — | 399,508,751 | $ | 3,995 | (2,810,026 | ) | $ | (207,740 | ) | $ | 5,788,786 | $ | (794,221 | ) | $ | (837,320 | ) | $ | 99,792 | $ | 4,053,352 | ||||||||||||||||||||||
Stock-based compensation related activity | — | — | — | — | 904,645 | 9 | — | — | 79,878 | — | — | — | 79,887 | |||||||||||||||||||||||||||||||||||
Issuance of common stock—stock purchase plan | — | — | — | — | 43,940 | — | — | — | 3,465 | — | — | — | 3,465 | |||||||||||||||||||||||||||||||||||
Issuance of common stock | — | — | — | — | 25,850,000 | 259 | — | — | 2,440,068 | — | — | — | 2,440,327 | |||||||||||||||||||||||||||||||||||
Issuance of preferred stock | — | — | 1,375,000 | 14 | — | — | — | — | 1,337,932 | — | — | — | 1,337,946 | |||||||||||||||||||||||||||||||||||
Changes in fair value of cash flow hedges, net of tax | — | — | — | — | — | — | — | — | — | 377 | — | (12 | ) | 365 | ||||||||||||||||||||||||||||||||||
Reclassification of unrealized losses on cash flow hedges to net income, net of tax | — | — | — | — | — | — | — | — | — | 2,728 | — | 43 | 2,771 | |||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax | — | — | — | — | — | — | — | — | — | (1,041,787 | ) | — | (36,001 | ) | (1,077,788 | ) | ||||||||||||||||||||||||||||||||
Contributions from noncontrolling interest holders | — | — | — | — | — | — | — | — | — | — | — | 5,105 | 5,105 | |||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest holders | — | — | — | — | — | — | — | — | — | — | — | (656 | ) | (656 | ) | |||||||||||||||||||||||||||||||||
Common stock dividends/distributions declared | — | — | — | — | — | — | — | — | — | — | (560,993 | ) | — | (560,993 | ) | |||||||||||||||||||||||||||||||||
Preferred stock dividends declared | — | — | — | — | — | — | — | — | — | — | (49,991 | ) | — | (49,991 | ) | |||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | — | — | — | 452,372 | (1,960 | ) | 450,412 | ||||||||||||||||||||||||||||||||||
BALANCE, SEPTEMBER 30, 2015 | 6,000,000 | $ | 60 | 1,375,000 | $ | 14 | 426,307,336 | $ | 4,263 | (2,810,026 | ) | $ | (207,740 | ) | $ | 9,650,129 | $ | (1,832,903 | ) | $ | (995,932 | ) | $ | 66,311 | $ | 6,684,202 | ||||||||||||||||||||||
BALANCE, JANUARY 1, 2016 | 6,000,000 | $ | 60 | 1,375,000 | $ | 14 | 426,695,279 | $ | 4,267 | (2,810,026 | ) | $ | (207,740 | ) | $ | 9,690,609 | $ | (1,836,996 | ) | $ | (998,535 | ) | $ | 61,139 | $ | 6,712,818 | ||||||||||||||||||||||
Stock-based compensation related activity | — | — | — | — | 1,691,546 | 17 | — | — | 123,359 | — | — | — | 123,376 | |||||||||||||||||||||||||||||||||||
Issuance of common stock—stock purchase plan | — | — | — | — | 44,733 | — | — | — | 3,847 | — | — | — | 3,847 | |||||||||||||||||||||||||||||||||||
Changes in fair value of cash flow hedges, net of tax | — | — | — | — | — | — | — | — | — | (367 | ) | — | — | (367 | ) | |||||||||||||||||||||||||||||||||
Reclassification of unrealized gains on cash flow hedges to net income | — | — | — | — | — | — | — | — | — | (173 | ) | — | — | (173 | ) | |||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax | — | — | — | — | — | — | — | — | — | (38,838 | ) | — | (2,306 | ) | (41,144 | ) | ||||||||||||||||||||||||||||||||
Contributions from noncontrolling interest holders | — | — | — | — | — | — | — | — | — | — | — | 47 | 47 | |||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest holders | — | — | — | — | — | — | — | — | — | — | — | (747 | ) | (747 | ) | |||||||||||||||||||||||||||||||||
Common stock dividends/distributions declared | — | — | — | — | — | — | — | — | — | — | (679,002 | ) | — | (679,002 | ) | |||||||||||||||||||||||||||||||||
Preferred stock dividends declared | — | — | — | — | — | — | (80,344 | ) | — | (80,344 | ) | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | — | — | 727,218 | 8,752 | 735,970 | |||||||||||||||||||||||||||||||||||
BALANCE, SEPTEMBER 30, 2016 | 6,000,000 | $ | 60 | 1,375,000 | $ | 14 | 428,431,558 | $ | 4,284 | (2,810,026 | ) | $ | (207,740 | ) | $ | 9,817,815 | $ | (1,876,374 | ) | $ | (1,030,663 | ) | $ | 66,885 | $ | 6,774,281 |
1. | DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES |
As of | |||||||
September 30, 2016 | December 31, 2015 | ||||||
Prepaid operating ground leases | $ | 129,515 | $ | 128,542 | |||
Prepaid income tax | 109,949 | 45,056 | |||||
Unbilled receivables | 59,928 | 34,173 | |||||
Prepaid assets | 54,584 | 32,892 | |||||
Value added tax and other consumption tax receivables | 24,519 | 30,239 | |||||
Other miscellaneous current assets | 37,341 | 35,333 | |||||
Total | $ | 415,836 | $ | 306,235 |
Property | Services | Total | ||||||||||||||||||||||
U.S. | Asia (1) | EMEA | Latin America | |||||||||||||||||||||
Balance as of January 1, 2016 | $ | 3,379,163 | $ | 170,719 | $ | 132,570 | $ | 407,365 | $ | 1,988 | $ | 4,091,805 | ||||||||||||
Additions (2) | — | 826,735 | 42,297 | 5,008 | — | 874,040 | ||||||||||||||||||
Effect of foreign currency translation | — | (2,890 | ) | (19,703 | ) | 53,972 | — | 31,379 | ||||||||||||||||
Balance as of September 30, 2016 | $ | 3,379,163 | $ | 994,564 | $ | 155,164 | $ | 466,345 | $ | 1,988 | $ | 4,997,224 |
(1) | Includes approximately $826.7 million of goodwill assumed in the Viom Acquisition (see note 13). |
(2) | Balances have been revised to reflect purchase accounting measurement period adjustments. |
As of September 30, 2016 | As of December 31, 2015 | |||||||||||||||||||||||||
Estimated Useful Lives | Gross Carrying Value | Accumulated Amortization | Net Book Value | Gross Carrying Value | Accumulated Amortization | Net Book Value | ||||||||||||||||||||
(years) | (in thousands) | |||||||||||||||||||||||||
Acquired network location intangibles (1) | Up to 20 | $ | 4,626,477 | $ | (1,229,177 | ) | $ | 3,397,300 | $ | 3,980,281 | $ | (1,052,393 | ) | $ | 2,927,888 | |||||||||||
Acquired customer-related intangibles | 15-20 | 10,242,624 | (2,115,242 | ) | 8,127,382 | 8,640,554 | (1,763,853 | ) | 6,876,701 | |||||||||||||||||
Acquired licenses and other intangibles | 3-20 | 28,332 | (4,283 | ) | 24,049 | 28,293 | (5,486 | ) | 22,807 | |||||||||||||||||
Economic Rights, TV Azteca | 70 | 19,376 | (10,143 | ) | 9,233 | 21,688 | (11,208 | ) | 10,480 | |||||||||||||||||
Total other intangible assets | $ | 14,916,809 | $ | (3,358,845 | ) | $ | 11,557,964 | $ | 12,670,816 | $ | (2,832,940 | ) | $ | 9,837,876 |
(1) | Acquired network location intangibles are amortized over the shorter of the term of the corresponding ground lease taking into consideration lease renewal options and residual value or up to 20 years, as the Company considers these intangibles to be directly related to the tower assets. |
Fiscal Year | |||
Remainder of 2016 | $ | 179.6 | |
2017 | 716.2 | ||
2018 | 714.0 | ||
2019 | 711.1 | ||
2020 | 692.3 | ||
2021 | 682.8 |
As of | |||||||
September 30, 2016 | December 31, 2015 | ||||||
Accrued property and real estate taxes | $ | 114,839 | $ | 75,827 | |||
Payroll and related withholdings | 63,848 | 62,334 | |||||
Accrued rent | 52,926 | 54,732 | |||||
Accrued construction costs | 19,517 | 19,857 | |||||
Accrued income tax payable | 2,480 | 11,704 | |||||
Other accrued expenses | 318,379 | 291,959 | |||||
Total | $ | 571,989 | $ | 516,413 |
As of | |||||||||
September 30, 2016 | December 31, 2015 | Maturity Date | |||||||
Series 2013-1A securities (1) | $ | 498,351 | $ | 497,478 | March 15, 2018 | ||||
Series 2013-2A securities (2) | 1,289,872 | 1,288,689 | March 15, 2023 | ||||||
Series 2015-1 notes (3) | 346,897 | 346,262 | June 15, 2020 | ||||||
Series 2015-2 notes (4) | 519,271 | 518,776 | June 16, 2025 | ||||||
2012 GTP notes (5) | 180,846 | 281,902 | March 15, 2019 | ||||||
Unison notes (6) | 200,616 | 201,930 | Various | ||||||
Viom indebtedness (7) | 593,491 | — | Various | ||||||
Viom preference shares (8) | 25,021 | — | Various | ||||||
Shareholder loans (9) | 151,723 | 145,540 | Various | ||||||
BR Towers debentures (10) | 103,194 | 85,219 | October 15, 2023 | ||||||
Colombian credit facility (11) | 60,131 | 59,640 | April 24, 2021 | ||||||
South African facility (12) | 50,911 | 53,175 | December 17, 2020 | ||||||
Brazil credit facility (13) | 38,900 | 21,868 | January 15, 2022 | ||||||
Indian working capital facility (14) | 662 | 8,752 | October 31, 2016 | ||||||
Total American Tower subsidiary debt | 4,059,886 | 3,509,231 | |||||||
2013 Credit Facility | 137,692 | 1,225,000 | June 28, 2019 | ||||||
Term Loan | 994,553 | 1,993,601 | January 29, 2021 | ||||||
2014 Credit Facility | 1,840,000 | 1,980,000 | January 29, 2021 | ||||||
4.500% senior notes | 998,357 | 997,693 | January 15, 2018 | ||||||
3.40% senior notes | 999,661 | 999,769 | February 15, 2019 | ||||||
7.25% senior notes | 296,665 | 296,242 | May 15, 2019 | ||||||
2.800% senior notes | 744,557 | 743,557 | June 1, 2020 | ||||||
5.050% senior notes | 697,165 | 697,216 | September 1, 2020 | ||||||
3.300% senior notes | 744,465 | — | February 15, 2021 | ||||||
3.450% senior notes | 643,529 | 642,786 | September 15, 2021 | ||||||
5.900% senior notes | 497,203 | 497,188 | November 1, 2021 | ||||||
2.250% senior notes | 594,903 | — | January 15, 2022 | ||||||
4.70% senior notes | 695,821 | 695,374 | March 15, 2022 | ||||||
3.50% senior notes | 988,820 | 987,966 | January 31, 2023 | ||||||
5.00% senior notes | 1,002,816 | 1,003,453 | February 15, 2024 | ||||||
4.000% senior notes | 739,717 | 739,057 | June 1, 2025 | ||||||
4.400% senior notes | 495,102 | — | February 15, 2026 | ||||||
3.375% senior notes | 983,007 | — | October 15, 2026 | ||||||
3.125% senior notes | 396,702 | — | January 15, 2027 | ||||||
Total American Tower Corporation debt | 14,490,735 | 13,498,902 | |||||||
Other debt, including capital lease obligations | 128,515 | 110,876 | |||||||
Total | 18,679,136 | 17,119,009 | |||||||
Less current portion of long-term obligations | (242,992 | ) | (50,202 | ) | |||||
Long-term obligations | $ | 18,436,144 | $ | 17,068,807 |
(3) | Maturity date represents anticipated repayment date; final legal maturity is June 15, 2045. |
(4) | Maturity date represents anticipated repayment date; final legal maturity is June 15, 2050. |
(5) | Secured debt assumed by the Company in connection with its acquisition of MIP Tower Holdings LLC. Maturity date represents anticipated repayment date; final legal maturity is March 15, 2042. During the nine months ended September 30, 2016, the Company repaid the $94.1 million outstanding under the Secured Tower Cellular Site Revenue Notes, Series 2012-1 Class A and released 472 sites in connection with this repayment. |
(6) | Secured debt assumed by the Company in connection with its acquisition of certain legal entities from Unison Holdings LLC and Unison Site Management II, L.L.C (together, “Unison”). In October 2016, the Company repaid the $67.0 million outstanding under the Secured Cellular Site Revenue Notes, Series 2010-1, Class C. The anticipated repayment date for the remaining series is April 15, 2020; final legal maturity date is April 15, 2040. |
(7) | Debt primarily assumed by the Company in connection with the Viom Acquisition. Maturity dates begin March 31, 2017. Denominated in Indian Rupees (“INR”). In October 2016, ATC TIPL refinanced 3.6 billion INR ($53.5 million as of September 30, 2016) of Viom assumed indebtedness with borrowings under a new short-term committed loan facility with a borrowing capacity of 5.8 billion INR ($87.1 million as of September 30, 2016) and repaid an additional 1.4 billion INR ($21.0 million as of September 30, 2016) of Viom assumed indebtedness with cash on hand. |
(8) | Mandatorily redeemable preference shares (the “Preference Shares”) classified as debt, assumed by the Company in connection with the Viom Acquisition. The shares are to be redeemed in equal parts on March 26, 2017 and March 26, 2018. |
(9) | Reflects balances owed to the Company’s joint venture partners in Ghana and Uganda. The Ghana loan is denominated in Ghanaian Cedi and the Uganda loan is denominated in U.S. Dollars. |
(10) | Publicly issued debentures assumed by the Company in connection with its acquisition of BR Towers S.A. Denominated in Brazilian Reais (“BRL”). |
(11) | Denominated in Colombian Pesos and amortizes through April 24, 2021. |
(12) | Denominated in South African Rand and amortizes through December 17, 2020. |
(13) | Denominated in BRL. |
(14) | Denominated in INR. This agreement provides that the maturity date may be extended for additional 30-day periods. |
Amount Outstanding (INR) | Amount Outstanding (USD) | Interest Rate (Range) | Maturity Date (Range) | |||||||||||
Term loans | 33,533 | $ | 503.4 | 10.50% - 11.20% | March 31, 2017 - November 30, 2024 | |||||||||
Debenture | 6,000 | $ | 90.1 | 9.90 | % | April 28, 2020 | ||||||||
Working capital facilities | — | — | 9.85% - 11.80% | October 23, 2016 - March 18, 2017 |
Outstanding Principal Balance (in millions) | Undrawn letters of credit (in millions) | Maturity Date | Current margin over LIBOR (1) | Current commitment fee (2) | |||||||||||
2013 Credit Facility | $ | 137.7 | $ | 3.2 | June 28, 2019 (3) | 1.250 | % | 0.150 | % | ||||||
2014 Credit Facility | $ | 1,840.0 | $ | 7.4 | January 29, 2021 (3) | 1.250 | % | 0.150 | % | ||||||
Term Loan | $ | 1,000.0 | $ | — | January 29, 2021 | 1.250 | % | N/A |
Level 1 | Quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. | |
Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
September 30, 2016 | December 31, 2015 | |||||||||||||||
Fair Value Measurements Using | Fair Value Measurements Using | |||||||||||||||
Level 2 | Level 3 | Level 2 | Level 3 | |||||||||||||
Assets: | ||||||||||||||||
Interest rate swap agreements | $ | 212 | — | $ | 692 | — | ||||||||||
Embedded derivative in lease agreement | — | $ | 13,513 | — | $ | 14,176 | ||||||||||
Liabilities: | ||||||||||||||||
Acquisition-related contingent consideration | — | $ | 21,575 | — | $ | 12,436 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Stock-based compensation expense | $ | 20,226 | $ | 18,345 | $ | 70,212 | $ | 72,251 | |||||||
Stock-based compensation expense capitalized as property and equipment | $ | 353 | $ | 495 | $ | 1,115 | $ | 1,554 |
Range of risk-free interest rate | 1.00% - 1.73% | |
Weighted average risk-free interest rate | 1.45% | |
Range of expected life of stock options | 4.5 - 5.2 years | |
Range of expected volatility of the underlying stock price | 20.64% - 21.45% | |
Weighted average expected volatility of underlying stock price | 21.45% | |
Range of expected annual dividend yield | 1.85% - 2.40% |
Number of Options | |||
Outstanding as of January 1, 2016 | 7,680,819 | ||
Granted | 1,140,366 | ||
Exercised | (1,263,309 | ) | |
Forfeited | (16,320 | ) | |
Expired | (800 | ) | |
Outstanding as of September 30, 2016 | 7,540,756 |
RSUs | PSUs | ||||
Outstanding as of January 1, 2016 (1) | 1,656,993 | 33,377 | |||
Granted (2) | 774,739 | 192,719 | |||
Vested | (641,810 | ) | — | ||
Forfeited | (84,461 | ) | — | ||
Outstanding as of September 30, 2016 | 1,705,461 | 226,096 |
(1) | PSUs represent the shares issuable for the 2015 PSUs at the end of the three-year performance cycle based on exceeding the performance metric for the first year’s performance period. |
(2) | PSUs represent the target number of shares issuable at the end of the three-year performance cycle attributable to the second year’s performance period for the 2015 PSUs and the target number of shares issuable at the end of the three-year performance cycle for the 2016 PSUs. |
Balance as of January 1, 2016 | $ | — | ||
Fair value at acquisition | 1,100,804 | |||
Net income attributable to noncontrolling interests | 1,536 | |||
Foreign currency translation adjustment attributable to noncontrolling interests | (2,138 | ) | ||
Balance as of September 30, 2016 | $ | 1,100,202 |
Declaration Date | Payment Date | Record Date | Distribution per share | Aggregate Payment Amount (in millions) | ||||||||
Common Stock | ||||||||||||
December 3, 2015 | January 13, 2016 | December 16, 2015 | $ | 0.49 | $ | 207.7 | ||||||
March 9, 2016 | April 28, 2016 | April 12, 2016 | $ | 0.51 | $ | 216.5 | ||||||
June 2, 2016 | July 15, 2016 | June 17, 2016 | $ | 0.53 | $ | 225.4 | ||||||
September 16, 2016 | October 17, 2016 | September 30, 2016 | $ | 0.55 | $ | 234.1 | ||||||
Series A Preferred Stock | ||||||||||||
January 14, 2016 | February 16, 2016 | February 1, 2016 | $ | 1.3125 | $ | 7.9 | ||||||
April 16, 2016 | May 16, 2016 | May 1, 2016 | $ | 1.3125 | $ | 7.9 | ||||||
July 22, 2016 | August 15, 2016 | August 1, 2016 | $ | 1.3125 | $ | 7.9 | ||||||
Series B Preferred Stock | ||||||||||||
January 14, 2016 | February 16, 2016 | February 1, 2016 | $ | 13.75 | $ | 18.9 | ||||||
April 16, 2016 | May 16, 2016 | May 1, 2016 | $ | 13.75 | $ | 18.9 | ||||||
July 22, 2016 | August 15, 2016 | August 1, 2016 | $ | 13.75 | $ | 18.9 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income attributable to American Tower Corporation stockholders | $ | 264,509 | $ | 102,999 | $ | 727,218 | $ | 452,372 | |||||||
Dividends on preferred stock | (26,781 | ) | (26,781 | ) | (80,344 | ) | (63,382 | ) | |||||||
Net income attributable to American Tower Corporation common stockholders | 237,728 | 76,218 | 646,874 | 388,990 | |||||||||||
Basic weighted average common shares outstanding | 425,517 | 423,375 | 424,831 | 417,280 | |||||||||||
Dilutive securities | 4,408 | 3,852 | 4,188 | 4,072 | |||||||||||
Diluted weighted average common shares outstanding | 429,925 | 427,227 | 429,019 | 421,352 | |||||||||||
Basic net income attributable to American Tower Corporation common stockholders per common share | $ | 0.56 | $ | 0.18 | $ | 1.52 | $ | 0.93 | |||||||
Diluted net income attributable to American Tower Corporation common stockholders per common share | $ | 0.55 | $ | 0.18 | $ | 1.51 | $ | 0.92 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
Restricted stock awards | — | — | 2 | — | |||||||
Stock options | 8 | 1,996 | 1,619 | 1,472 | |||||||
Preferred stock | 17,473 | 17,368 | 17,473 | 14,724 |
Remainder of 2016 | $ | 1,271 | |
2017 | 4,710 | ||
2018 | 4,543 | ||
2019 | 4,269 | ||
2020 | 3,916 | ||
Thereafter | 13,825 | ||
Total | $ | 32,534 |
Remainder of 2016 | $ | 244 | |
2017 | 912 | ||
2018 | 886 | ||
2019 | 854 | ||
2020 | 815 | ||
Thereafter | 7,370 | ||
Total | $ | 11,081 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Acquisition and merger related expenses | $ | 1,124 | $ | 8,587 | $ | 7,844 | $ | 16,574 | ||||||||
Integration costs | $ | 1,846 | $ | 5,938 | $ | 8,351 | $ | 12,218 |
Asia | Other | |||||||
Viom | ||||||||
Current assets | $ | 281,888 | $ | 12,619 | ||||
Non-current assets | 37,737 | 145 | ||||||
Property and equipment | 707,560 | 46,026 | ||||||
Intangible assets (1): | ||||||||
Customer-related intangible assets | 1,435,164 | 86,779 | ||||||
Network location intangible assets | 691,484 | 21,258 | ||||||
Current liabilities | (181,101 | ) | (7,701 | ) | ||||
Deferred tax liability | (657,810 | ) | (14,290 | ) | ||||
Other non-current liabilities | (105,458 | ) | (6,477 | ) | ||||
Net assets acquired | 2,209,464 | 138,359 | ||||||
Goodwill (2) | 826,735 | 47,200 | ||||||
Fair value of net assets acquired | 3,036,199 | 185,559 | ||||||
Debt assumed | (786,889 | ) | — | |||||
Redeemable noncontrolling interests | (1,100,804 | ) | — | |||||
Purchase Price | $ | 1,148,506 | $ | 185,559 |
(1) | Customer-related intangible assets and network location intangible assets are amortized on a straight-line basis over periods of up to 20 years. |
(2) | Primarily results from purchase accounting adjustments, which are not deductible for tax purposes in any foreign jurisdiction. |
Preliminary Allocation | Updated Allocation | |||||||||||||||
Latin America | Other | Latin America | Other | |||||||||||||
TIM | TIM (1) | |||||||||||||||
Current assets | $ | — | $ | 1,113 | $ | — | $ | 1,113 | ||||||||
Non-current assets | — | 995 | — | 995 | ||||||||||||
Property and equipment | 275,630 | 42,716 | 274,530 | 42,716 | ||||||||||||
Intangible assets (2): | ||||||||||||||||
Customer-related intangible assets | 361,822 | 63,001 | 361,765 | 62,832 | ||||||||||||
Network location intangible assets | 115,562 | 37,691 | 115,795 | 37,691 | ||||||||||||
Current liabilities | (3,192 | ) | (624 | ) | (3,192 | ) | (624 | ) | ||||||||
Deferred tax liability | — | — | — | — | ||||||||||||
Other non-current liabilities | (74,966 | ) | (4,028 | ) | (74,966 | ) | (4,028 | ) | ||||||||
Net assets acquired | 674,856 | 140,864 | 673,932 | 140,695 | ||||||||||||
Goodwill | 122,011 | 24,011 | 122,116 | 24,011 | ||||||||||||
Fair value of net assets acquired | 796,867 | 164,875 | 796,048 | 164,706 | ||||||||||||
Debt assumed | — | — | — | — | ||||||||||||
Purchase Price | $ | 796,867 | $ | 164,875 | $ | 796,048 | $ | 164,706 |
(1) | The allocation of the purchase price related to the 5,301 communications sites acquired from TIM on April 29, 2015 and September 30, 2015 was finalized during the nine months ended September 30, 2016. |
(2) | Customer-related intangible assets and network location intangible assets are amortized on a straight-line basis over periods of up to 20 years. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Pro forma revenues | $ | 1,517,197 | $ | 1,449,460 | $ | 4,498,458 | $ | 4,372,304 | ||||||||
Pro forma net income attributable to American Tower Corporation common stockholders | $ | 238,364 | $ | 72,885 | $ | 643,780 | $ | 346,097 | ||||||||
Pro forma net income per common share amounts: | ||||||||||||||||
Basic net income attributable to American Tower Corporation common stockholders | $ | 0.56 | $ | 0.17 | $ | 1.52 | $ | 0.82 | ||||||||
Diluted net income attributable to American Tower Corporation common stockholders | $ | 0.55 | $ | 0.17 | $ | 1.50 | $ | 0.81 |
• | U.S.: property operations in the United States; |
• | Asia: property operations in India; |
• | EMEA: property operations in Germany, Ghana, Nigeria, South Africa and Uganda; and |
• | Latin America: property operations in Brazil, Chile, Colombia, Costa Rica, Mexico and Peru. |
Property | Total Property | Services | Other | Total | ||||||||||||||||||||||||||||
Three Months Ended September 30, 2016 | U.S. | Asia | EMEA | Latin America | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Segment revenues | $ | 837,002 | $ | 269,907 | $ | 130,664 | $ | 260,363 | $ | 1,497,936 | $ | 16,909 | $ | 1,514,845 | ||||||||||||||||||
Segment operating expenses (1) | 188,777 | 154,139 | 53,787 | 88,396 | 485,099 | 5,540 | 490,639 | |||||||||||||||||||||||||
Interest income, TV Azteca, net | — | — | — | 2,742 | 2,742 | — | 2,742 | |||||||||||||||||||||||||
Segment gross margin | 648,225 | 115,768 | 76,877 | 174,709 | 1,015,579 | 11,369 | 1,026,948 | |||||||||||||||||||||||||
Segment selling, general, administrative and development expense (1) | 35,526 | 15,030 | 12,958 | 15,454 | 78,968 | 2,726 | 81,694 | |||||||||||||||||||||||||
Segment operating profit | $ | 612,699 | $ | 100,738 | $ | 63,919 | $ | 159,255 | $ | 936,611 | $ | 8,643 | $ | 945,254 | ||||||||||||||||||
Stock-based compensation expense | $ | 20,226 | 20,226 | |||||||||||||||||||||||||||||
Other selling, general, administrative and development expense | 30,215 | 30,215 | ||||||||||||||||||||||||||||||
Depreciation, amortization and accretion | 397,999 | 397,999 | ||||||||||||||||||||||||||||||
Other expense (2) | 211,042 | 211,042 | ||||||||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 285,772 | ||||||||||||||||||||||||||||||
Total assets | $ | 18,837,629 | $ | 4,612,766 | $ | 2,120,592 | $ | 4,885,066 | $ | 30,456,053 | $ | 60,810 | $ | 138,664 | $ | 30,655,527 |
(1) | Segment operating expenses and segment selling, general, administrative and development expenses exclude stock-based compensation expense of $0.6 million and $19.6 million, respectively. |
(2) | Primarily includes interest expense. |
Property | Total Property | Services | Other | Total | ||||||||||||||||||||||||||||
Three Months Ended September 30, 2015 | U.S. | Asia | EMEA | Latin America | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Segment revenues | $ | 807,978 | $ | 61,563 | $ | 124,545 | $ | 218,763 | $ | 1,212,849 | $ | 25,061 | $ | 1,237,910 | ||||||||||||||||||
Segment operating expenses (1) | 187,368 | 32,629 | 57,492 | 78,197 | 355,686 | 9,208 | 364,894 | |||||||||||||||||||||||||
Interest income, TV Azteca, net | — | — | — | 2,993 | 2,993 | — | 2,993 | |||||||||||||||||||||||||
Segment gross margin | 620,610 | 28,934 | 67,053 | 143,559 | 860,156 | 15,853 | 876,009 | |||||||||||||||||||||||||
Segment selling, general, administrative and development expense (1) | 31,374 | 5,824 | 13,009 | 14,296 | 64,503 | 3,730 | 68,233 | |||||||||||||||||||||||||
Segment operating profit | $ | 589,236 | $ | 23,110 | $ | 54,044 | $ | 129,263 | $ | 795,653 | $ | 12,123 | $ | 807,776 | ||||||||||||||||||
Stock-based compensation expense | $ | 18,345 | 18,345 | |||||||||||||||||||||||||||||
Other selling, general, administrative and development expense (2) | 28,749 | 28,749 | ||||||||||||||||||||||||||||||
Depreciation, amortization and accretion | 341,096 | 341,096 | ||||||||||||||||||||||||||||||
Other expense (3) | 227,611 | 227,611 | ||||||||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 191,975 | ||||||||||||||||||||||||||||||
Total assets (4) | $ | 19,353,820 | $ | 746,355 | $ | 2,301,888 | $ | 4,301,308 | $ | 26,703,371 | $ | 70,006 | $ | 153,411 | $ | 26,926,788 |
(1) | Segment operating expenses and segment selling, general, administrative and development expenses exclude stock-based compensation expense of $0.5 million and $17.9 million, respectively. |
(2) | Includes $1.6 million of expense previously recorded as segment selling, general, administrative and development expense. |
(3) | Primarily includes interest expense. |
(4) | $12.0 million of assets previously recorded within the Asia, EMEA, and Latin America Property segments have been reclassified to the Other segment. |
Property | Total Property | Services | Other | Total | ||||||||||||||||||||||||||||
Nine Months Ended September 30, 2016 | U.S. | Asia | EMEA | Latin America | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Segment revenues | $ | 2,518,426 | $ | 557,734 | $ | 395,066 | $ | 720,553 | $ | 4,191,779 | $ | 54,340 | $ | 4,246,119 | ||||||||||||||||||
Segment operating expenses (1) | 548,875 | 315,074 | 167,908 | 247,204 | 1,279,061 | 21,429 | 1,300,490 | |||||||||||||||||||||||||
Interest income, TV Azteca, net | — | — | — | 8,206 | 8,206 | — | 8,206 | |||||||||||||||||||||||||
Segment gross margin | 1,969,551 | 242,660 | 227,158 | 481,555 | 2,920,924 | 32,911 | 2,953,835 | |||||||||||||||||||||||||
Segment selling, general, administrative and development expense (1) | 107,533 | 36,376 | 45,795 | 45,069 | 234,773 | 8,988 | 243,761 | |||||||||||||||||||||||||
Segment operating profit | $ | 1,862,018 | $ | 206,284 | $ | 181,363 | $ | 436,486 | $ | 2,686,151 | $ | 23,923 | $ | 2,710,074 | ||||||||||||||||||
Stock-based compensation expense | $ | 70,212 | 70,212 | |||||||||||||||||||||||||||||
Other selling, general, administrative and development expense | 93,016 | 93,016 | ||||||||||||||||||||||||||||||
Depreciation, amortization and accretion | 1,137,398 | 1,137,398 | ||||||||||||||||||||||||||||||
Other expense (2) | 577,271 | 577,271 | ||||||||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 832,177 |
(1) | Segment operating expenses and segment selling, general, administrative and development expenses exclude stock-based compensation expense of $1.9 million and $68.3 million, respectively. |
(2) | Primarily includes interest expense. |
Property | Total Property | Services | Other | Total | ||||||||||||||||||||||||||||
Nine Months Ended September 30, 2015 | U.S. | Asia | EMEA | Latin America | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Segment revenues | $ | 2,328,699 | $ | 178,699 | $ | 270,754 | $ | 651,112 | $ | 3,429,264 | $ | 62,211 | $ | 3,491,475 | ||||||||||||||||||
Segment operating expenses (1) | 502,572 | 93,917 | 110,205 | 221,712 | 928,406 | 22,527 | 950,933 | |||||||||||||||||||||||||
Interest income, TV Azteca, net | — | — | — | 8,251 | 8,251 | — | 8,251 | |||||||||||||||||||||||||
Segment gross margin | 1,826,127 | 84,782 | 160,549 | 437,651 | 2,509,109 | 39,684 | 2,548,793 | |||||||||||||||||||||||||
Segment selling, general, administrative and development expense (1) | 89,439 | 17,133 | 33,820 | 44,548 | 184,940 | 10,605 | 195,545 | |||||||||||||||||||||||||
Segment operating profit | $ | 1,736,688 | $ | 67,649 | $ | 126,729 | $ | 393,103 | $ | 2,324,169 | $ | 29,079 | $ | 2,353,248 | ||||||||||||||||||
Stock-based compensation expense | $ | 72,251 | 72,251 | |||||||||||||||||||||||||||||
Other selling, general, administrative and development expense (2) | 88,218 | 88,218 | ||||||||||||||||||||||||||||||
Depreciation, amortization and accretion | 932,972 | 932,972 | ||||||||||||||||||||||||||||||
Other expense (3) | 677,332 | 677,332 | ||||||||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 582,475 |
(1) | Segment operating expenses and segment selling, general, administrative and development expenses exclude stock-based compensation expense of $1.6 million and $70.7 million, respectively. |
(2) | Includes $3.8 million of expense previously recorded as segment selling, general, administrative and development expense. |
(3) | Primarily includes interest expense and loss on retirement of long-term obligations. |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Number of Owned Towers | Number of Operated Towers (1) | Number of Owned DAS Sites | |||||||
U.S. | 21,857 | 18,221 | 341 | ||||||
Asia: | |||||||||
India | 57,739 | — | 248 | ||||||
EMEA: | |||||||||
Germany | 2,197 | — | — | ||||||
Ghana | 2,137 | — | 18 | ||||||
Nigeria | 4,729 | — | — | ||||||
South Africa | 2,309 | — | — | ||||||
Uganda | 1,393 | ||||||||
EMEA total | 12,765 | — | 18 | ||||||
Latin America: | |||||||||
Brazil | 16,134 | 2,268 | 65 | ||||||
Chile | 1,213 | — | 7 | ||||||
Colombia | 3,066 | 706 | 1 | ||||||
Costa Rica | 484 | — | 1 | ||||||
Mexico | 8,607 | 199 | 64 | ||||||
Peru | 635 | — | — | ||||||
Latin America total | 30,139 | 3,173 | 138 |
(1) | Approximately 96% of the operated towers are held pursuant to long-term capital leases, including those subject to purchase options. |
• | New revenue attributable to leases in place at the commencement of operations on sites acquired or constructed since the beginning of the prior-year period; |
• | Contractual rent escalations on existing tenant leases, net of churn (as defined below); and |
• | New revenue attributable to leasing additional space on our sites (“colocations”) and lease amendments. |
• | Revenue growth from other items, including additional tenant payments to cover costs, such as ground rent or power and fuel costs (“pass-through”) included in certain tenant leases, straight-line revenue and decommissioning. |
• | In less advanced wireless markets where initial voice and data networks are still being deployed, we expect these deployments to drive demand for our tower space as carriers seek to expand their footprints and increase the scope and density of their networks. We have established operations in many of these markets at the early stages of wireless development, which we believe will enable us to meaningfully participate in these deployments. |
• | Subscribers’ use of wireless data continues to grow rapidly given increasing smartphone and other advanced device penetration, the proliferation of bandwidth-intensive applications on these devices and the continuing evolution of the mobile ecosystem. We believe carriers will be compelled to deploy additional equipment on |
• | The deployment of advanced wireless technology across existing wireless networks will provide higher speed data services and further enable fixed broadband substitution. As a result, we expect that our tenants will continue deploying additional equipment across their existing networks. |
• | Wireless service providers compete based on the quality of their existing wireless networks, which is driven by capacity and coverage. To maintain or improve their network performance as overall network usage increases, our tenants continue deploying additional equipment across their existing sites while also adding new cell sites. We anticipate increasing network densification over the next several years, as existing network infrastructure is anticipated to be insufficient to account for rapidly increasing levels of wireless data usage. |
• | Wireless service providers continue to acquire additional spectrum, and as a result are expected to add additional sites and equipment to their networks as they seek to optimize their network configuration and utilize additional spectrum. |
Three Months Ended September 30, | Percent Increase (Decrease) | Nine Months Ended September 30, | Percent Increase (Decrease) | ||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Property | |||||||||||||||||||||
U.S. | $ | 837,002 | $ | 807,978 | 4 | % | $ | 2,518,426 | $ | 2,328,699 | 8 | % | |||||||||
Asia | 269,907 | 61,563 | 338 | 557,734 | 178,699 | 212 | |||||||||||||||
EMEA | 130,664 | 124,545 | 5 | 395,066 | 270,754 | 46 | |||||||||||||||
Latin America | 260,363 | 218,763 | 19 | 720,553 | 651,112 | 11 | |||||||||||||||
Total property | 1,497,936 | 1,212,849 | 24 | 4,191,779 | 3,429,264 | 22 | |||||||||||||||
Services | 16,909 | 25,061 | (33 | ) | 54,340 | 62,211 | (13 | ) | |||||||||||||
Total revenues | $ | 1,514,845 | $ | 1,237,910 | 22 | % | $ | 4,246,119 | $ | 3,491,475 | 22 | % |
• | $32.5 million due to colocations and amendments; |
• | $7.9 million from contractual escalations, net of churn; |
• | $1.0 million generated from newly acquired or constructed sites; and |
• | $2.0 million from other tenant billings. |
• | Tenant billings growth of $129.0 million, which was driven by: |
• | $123.1 million generated from newly acquired sites, primarily due to the Viom Acquisition; |
• | $5.2 million due to colocations and amendments; |
• | $1.9 million generated from newly constructed sites; |
• | Partially offset by, |
▪ | A decrease of $0.9 million resulting from churn in excess of contractual escalations; and |
▪ | A decrease of $0.3 million from other tenant billings. |
• | Pass-through revenue growth of $86.5 million, primarily due to the Viom Acquisition; and |
• | $2.2 million of other revenue growth, primarily due to the impact of straight-line accounting. |
• | Tenant billings growth of $13.2 million, which was driven by: |
• | $5.5 million due to colocations and amendments; |
• | $4.6 million from contractual escalations, net of churn; |
• | $2.2 million generated from newly acquired or constructed sites; and |
• | $0.9 million from other tenant billings; |
• | Pass-through revenue growth of $12.2 million; |
• | Partially offset by a decrease in revenue of $3.6 million, partially attributable to an $0.8 million impact of straight-line accounting. |
• | Tenant billings growth of $30.7 million, which was driven by: |
• | $10.9 million from contractual escalations, net of churn; |
• | $9.6 million generated from newly acquired or constructed sites; |
• | $9.6 million due to colocations and amendments; and |
• | $0.6 million from other tenant billings; |
• | Pass-through revenue growth of $10.2 million; and |
• | $2.4 million of other revenue growth, due to a $4.1 million increase attributable to the impact of straight-line accounting. |
• | Tenant billings growth of $212.1 million, which was driven by: |
• | $94.5 million due to colocations and amendments; |
• | $90.4 million generated from newly acquired or constructed sites, including sites associated with our transaction with Verizon Communications Inc. (“Verizon”); |
• | $26.6 million from contractual escalations, net of churn; and |
• | $0.6 million from other tenant billings. |
• | Tenant billings growth of $239.7 million, which was driven by: |
• | $220.8 million generated from newly acquired sites, primarily due to the Viom Acquisition; |
• | $14.3 million due to colocations and amendments; |
• | $6.9 million generated from newly constructed sites; |
• | Partially offset by, |
▪ | A decrease of $1.7 million resulting from churn in excess of contractual escalations; and |
▪ | A decrease of $0.6 million from other tenant billings; |
• | Pass-through revenue growth of $159.6 million, primarily due to the Viom Acquisition; and |
• | Tenant billings growth of $109.5 million, which was driven by: |
• | $78.5 million generated from newly acquired or constructed sites, including sites acquired from Airtel in Nigeria; |
• | $16.9 million due to colocations and amendments; |
• | $12.9 million from contractual escalations, net of churn; and |
• | $1.2 million from other tenant billings; |
• | Pass-through revenue growth of $50.5 million; |
• | Partially offset by a decrease of $2.2 million, primarily due to the $1.7 million impact of straight-line accounting. |
• | Tenant billings growth of $104.8 million, which was driven by: |
• | $42.7 million generated from newly acquired or constructed sites; |
• | $32.3 million from contractual escalations, net of churn; |
• | $28.1 million due to colocations and amendments; and |
• | $1.7 million from other tenant billings; |
• | Pass-through revenue growth of $57.1 million; and |
• | An increase of $12.5 million in other revenue, primarily due to a $20.1 million impact of straight-line accounting offset in part by a $7.0 million reduction in revenue resulting from a judicial reorganization of a tenant in Brazil. |
Three Months Ended September 30, | Percent Increase (Decrease) | Nine Months Ended September 30, | Percent Increase (Decrease) | ||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Property | |||||||||||||||||||||
U.S. | $ | 648,225 | $ | 620,610 | 4 | % | $ | 1,969,551 | $ | 1,826,127 | 8 | % | |||||||||
Asia | 115,768 | 28,934 | 300 | 242,660 | 84,782 | 186 | |||||||||||||||
EMEA | 76,877 | 67,053 | 15 | 227,158 | 160,549 | 41 | |||||||||||||||
Latin America | 174,709 | 143,559 | 22 | 481,555 | 437,651 | 10 | |||||||||||||||
Total property | 1,015,579 | 860,156 | 18 | 2,920,924 | 2,509,109 | 16 | |||||||||||||||
Services | 11,369 | 15,853 | (28 | )% | 32,911 | 39,684 | (17 | )% |
• | The increase in U.S. property segment gross margin was primarily attributable to the increase in revenue described above, partially offset by an increase in direct expenses of $1.4 million. |
• | The increase in Asia property segment gross margin was primarily attributable to the increase in revenue described above and a benefit of $5.3 million attributable to the impact of foreign currency translation on direct expenses, partially offset by an increase in direct expenses of $126.8 million. Direct expense growth was primarily due to sites associated with the Viom Acquisition. |
• | The increase in EMEA property segment gross margin was primarily attributable to the increase in revenue described above and a benefit of $14.1 million attributable to the impact of foreign currency translation on direct expenses, offset by an increase in direct expenses of $10.4 million. |
• | The increase in Latin America property segment gross margin was primarily attributable to the increase in revenue described above, partially offset by an increase in direct expenses of $10.0 million. Direct expenses increased by an additional $0.2 million due to the impact of foreign currency translation. Direct expense growth was primarily due to newly acquired or constructed sites. |
• | The decrease in services segment gross margin was primarily due to the decrease in revenue described above. |
• | The increase in U.S. property segment gross margin was primarily attributable to the increase in revenue described above, partially offset by an increase in direct expenses of $46.3 million. Direct expense growth was primarily due to sites associated with our transaction with Verizon. |
• | The increase in Asia property segment gross margin was primarily attributable to the increase in revenue described above and a benefit of $15.1 million attributable to the impact of foreign currency translation on direct expenses, partially offset by an increase in direct expenses of $236.2 million. Direct expense growth was primarily due to sites associated with the Viom Acquisition. |
• | The increase in EMEA property segment gross margin was primarily attributable to the increase in revenue described above and a benefit of $20.7 million attributable to the impact of foreign currency translation on direct expenses, partially offset by an increase in direct expenses of $78.4 million. Direct expense growth was primarily due to sites acquired from Airtel. |
• | The increase in Latin America property segment gross margin was primarily attributable to the increase in revenue described above and a benefit of $35.9 million attributable to the impact of foreign currency translation on direct expenses, partially offset by an increase in direct expenses of $61.4 million. Direct expense growth was primarily due to newly acquired or constructed sites. |
• | The decrease in services segment gross margin was attributable to the decrease in revenue described above. |
Three Months Ended September 30, | Percent Increase (Decrease) | Nine Months Ended September 30, | Percent Increase (Decrease) | ||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Property | |||||||||||||||||||||
U.S. | $ | 35,526 | $ | 31,374 | 13 | % | $ | 107,533 | $ | 89,439 | 20 | % | |||||||||
Asia | 15,030 | 5,824 | 158 | 36,376 | 17,133 | 112 | |||||||||||||||
EMEA | 12,958 | 13,009 | — | 45,795 | 33,820 | 35 | |||||||||||||||
Latin America | 15,454 | 14,296 | 8 | 45,069 | 44,548 | 1 | |||||||||||||||
Total property | 78,968 | 64,503 | 22 | 234,773 | 184,940 | 27 | |||||||||||||||
Services | 2,726 | 3,730 | (27 | ) | 8,988 | 10,605 | (15 | ) | |||||||||||||
Other (1) | 49,843 | 46,599 | 7 | 161,325 | 158,915 | 2 | |||||||||||||||
Total selling, general, administrative and development expense | $ | 131,537 | $ | 114,832 | 15 | % | $ | 405,086 | $ | 354,460 | 14 | % |
(1) | Certain expenses previously reflected in segment SG&A for the three and nine months ended September 30, 2015 have been reclassified and are now reflected as Other SG&A. |
• | The increases in each of our U.S., Asia and Latin America property segments’ SG&A were primarily driven by increased personnel costs to support our business, including additional costs associated with the Viom Acquisition in our Asia property segment. |
• | The increase in other SG&A was primarily attributable to an increase in corporate SG&A and an increase in stock-based compensation expense of $1.8 million. |
• | The decrease in our services segment SG&A was primarily attributable to a decrease in personnel costs from a lower volume of business in our tower services group. |
• | The increases in each of our property segments’ SG&A were primarily driven by increased personnel costs to support our business, including additional costs associated with the transaction with Verizon in our U.S. property segment, the Viom Acquisition in our Asia property segment and the Airtel acquisition in our EMEA property segment. The EMEA and Asia property segments’ SG&A increases also included increases in bad debt expense of $3.4 million and $1.6 million, respectively. The EMEA and Latin America property segments’ SG&A increases were partially offset by decreases attributable to the impacts of foreign currency fluctuations. |
• | The increase in other SG&A was primarily attributable to an increase in corporate SG&A, partially offset by a decrease in stock-based compensation expense of $2.4 million. |
• | The decrease in our services segment SG&A was primarily attributable to a decrease in personnel costs from a lower volume of business in our tower services group. |
Three Months Ended September 30, | Percent Increase (Decrease) | Nine Months Ended September 30, | Percent Increase (Decrease) | ||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Property | |||||||||||||||||||||
U.S. | $ | 612,699 | $ | 589,236 | 4 | % | $ | 1,862,018 | $ | 1,736,688 | 7 | % | |||||||||
Asia | 100,738 | 23,110 | 336 | 206,284 | 67,649 | 205 | |||||||||||||||
EMEA | 63,919 | 54,044 | 18 | 181,363 | 126,729 | 43 | |||||||||||||||
Latin America | 159,255 | 129,263 | 23 | 436,486 | 393,103 | 11 | |||||||||||||||
Total property | 936,611 | 795,653 | 18 | 2,686,151 | 2,324,169 | 16 | |||||||||||||||
Services | 8,643 | 12,123 | (29 | )% | 23,923 | 29,079 | (18 | )% |
Three Months Ended September 30, | Percent Increase (Decrease) | Nine Months Ended September 30, | Percent Increase (Decrease) | ||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Depreciation, amortization and accretion | $ | 397,999 | $ | 341,096 | 17 | % | $ | 1,137,398 | $ | 932,972 | 22 | % |
Three Months Ended September 30, | Percent Increase (Decrease) | Nine Months Ended September 30, | Percent Increase (Decrease) | ||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Other operating expenses | $ | 14,998 | $ | 15,668 | (4 | )% | $ | 37,509 | $ | 40,891 | (8 | )% |
Three Months Ended September 30, | Percent Increase (Decrease) | Nine Months Ended September 30, | Percent Increase (Decrease) | ||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Other expense | $ | 193,302 | $ | 208,950 | (7 | )% | $ | 531,556 | $ | 628,190 | (15 | )% |
Three Months Ended September 30, | Percent Increase (Decrease) | Nine Months Ended September 30, | Percent Increase (Decrease) | ||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Income tax provision | $ | 22,037 | $ | 94,235 | (77 | )% | $ | 94,671 | $ | 132,063 | (28 | )% | |||||||||
Effective tax rate | 7.7 | % | 49.1 | % | 11.4 | % | 22.7 | % |
Three Months Ended September 30, | Percent Increase (Decrease) | Nine Months Ended September 30, | Percent Increase (Decrease) | |||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||||
Net income | $ | 263,735 | $ | 97,740 | 170 | % | $ | 737,506 | $ | 450,412 | 64 | % | ||||||||||
Income tax provision | 22,037 | 94,235 | (77 | ) | 94,671 | 132,063 | (28 | ) | ||||||||||||||
Other expense | 12,260 | 66,659 | (82 | ) | 25,894 | 123,291 | (79 | ) | ||||||||||||||
(Gain) loss on retirement of long-term obligations | — | — | — | (830 | ) | 78,793 | (101 | ) | ||||||||||||||
Interest expense | 190,160 | 149,787 | 27 | 531,076 | 446,228 | 19 | ||||||||||||||||
Interest income | (6,376 | ) | (4,503 | ) | 42 | (16,378 | ) | (11,871 | ) | 38 | ||||||||||||
Other operating expenses | 14,998 | 15,668 | (4 | ) | 37,509 | 40,891 | (8 | ) | ||||||||||||||
Depreciation, amortization and accretion | 397,999 | 341,096 | 17 | 1,137,398 | 932,972 | 22 | ||||||||||||||||
Stock-based compensation expense | 20,226 | 18,345 | 10 | 70,212 | 72,251 | (3 | ) | |||||||||||||||
Adjusted EBITDA | $ | 915,039 | $ | 779,027 | 17 | % | $ | 2,617,058 | $ | 2,265,030 | 16 | % |
Three Months Ended September 30, | Percent Increase (Decrease) | Nine Months Ended September 30, | Percent Increase (Decrease) | ||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Net income | $ | 263,735 | $ | 97,740 | 170 | % | $ | 737,506 | $ | 450,412 | 64 | % | |||||||||
Real estate related depreciation, amortization and accretion | 355,721 | 297,263 | 20 | 1,013,567 | 817,274 | 24 | |||||||||||||||
Losses from sale or disposal of real estate and real estate related impairment charges | 12,150 | 1,200 | 913 | 21,882 | 11,656 | 88 | |||||||||||||||
Dividends on preferred stock | (26,781 | ) | (26,781 | ) | — | (80,344 | ) | (63,382 | ) | 27 | |||||||||||
Adjustments for unconsolidated affiliates and noncontrolling interests | (27,224 | ) | 804 | (3,486 | ) | (61,182 | ) | (12,278 | ) | 398 | |||||||||||
NAREIT FFO attributable to American Tower Corporation common stockholders | $ | 577,601 | $ | 370,226 | 56 | % | $ | 1,631,429 | $ | 1,203,682 | 36 | % | |||||||||
Straight-line revenue | (34,645 | ) | (38,798 | ) | (11 | ) | (101,889 | ) | (108,177 | ) | (6 | ) | |||||||||
Straight-line expense | 17,814 | 16,433 | 8 | 50,127 | 39,158 | 28 | |||||||||||||||
Stock-based compensation expense | 20,226 | 18,345 | 10 | 70,212 | 72,251 | (3 | ) | ||||||||||||||
Deferred portion of income tax | 582 | (6,085 | ) | (110 | ) | 22,803 | 1,832 | 1,145 | |||||||||||||
Non-real estate related depreciation, amortization and accretion | 42,278 | 43,833 | (4 | ) | 123,831 | 115,698 | 7 | ||||||||||||||
Amortization of deferred financing costs, capitalized interest, debt discounts and premiums and long-term deferred interest charges | 5,578 | 7,292 | (24 | ) | 17,424 | 16,192 | 8 | ||||||||||||||
Other expense (1) | 12,260 | 66,659 | (82 | ) | 25,894 | 123,291 | (79 | ) | |||||||||||||
(Gain) loss on retirement of long-term obligations | — | — | — | (830 | ) | 78,793 | (101 | ) | |||||||||||||
Other operating expenses (2) | 2,848 | 14,468 | (80 | ) | 15,627 | 29,235 | (47 | ) | |||||||||||||
Capital improvement capital expenditures | (27,975 | ) | (22,202 | ) | 26 | (70,452 | ) | (58,835 | ) | 20 | |||||||||||
Corporate capital expenditures | (2,508 | ) | (4,343 | ) | (42 | ) | (9,732 | ) | (9,880 | ) | (1 | ) | |||||||||
Adjustments for unconsolidated affiliates and noncontrolling interests | 27,224 | (804 | ) | (3,486 | ) | 61,182 | 12,278 | 398 | |||||||||||||
MIPT one-time cash tax charge (3) | — | 93,044 | (100 | ) | — | 93,044 | (100 | ) | |||||||||||||
Consolidated AFFO | $ | 641,283 | $ | 558,068 | 15 | % | $ | 1,835,626 | $ | 1,608,562 | 14 | % | |||||||||
Adjustments for unconsolidated affiliates and noncontrolling interests | (29,315 | ) | (5,834 | ) | 402 | % | (66,439 | ) | (31,495 | ) | 111 | % | |||||||||
AFFO attributable to American Tower Corporation common stockholders | $ | 611,968 | $ | 552,234 | 11 | % | $ | 1,769,187 | $ | 1,577,067 | 12 | % |
(1) | Primarily includes realized and unrealized (gains) losses on foreign currency exchange rate fluctuations. |
(2) | Primarily includes integration and acquisition-related costs. |
(3) | As the one-time tax charge incurred in connection with the MIPT tax election is nonrecurring, we do not believe it is an indication of our operating performance and believe it is more meaningful to reflect our AFFO metrics excluding this impact. Accordingly, we present our AFFO metrics for the three and nine months ended September 30, 2015 excluding this charge. |
As of September 30, 2016 | |||
Available under the 2013 Credit Facility | $ | 2,612,308 | |
Available under the 2014 Credit Facility | 160,000 | ||
Letters of credit | (10,624 | ) | |
Total available under credit facilities, net | 2,761,684 | ||
Cash and cash equivalents | 530,358 | ||
Total liquidity | $ | 3,292,042 |
Nine Months Ended September 30, | |||||||
2016 | 2015 | ||||||
Net cash provided by (used for): | |||||||
Operating activities | $ | 1,978,431 | $ | 1,543,615 | |||
Investing activities | (1,786,202 | ) | (7,204,277 | ) | |||
Financing activities | 26,727 | 5,632,448 | |||||
Net effect of changes in foreign currency exchange rates on cash and cash equivalents | (9,284 | ) | 2,126 | ||||
Net increase (decrease) in cash and cash equivalents | $ | 209,672 | $ | (26,088 | ) |
• | We spent approximately $1.1 billion for the Viom Acquisition. |
• | We spent $489.1 million for capital expenditures, as follows (in millions): |
Discretionary capital projects (1) | $ | 137.2 | |
Ground lease purchases | 112.5 | ||
Capital improvements and corporate expenditures (2) | 80.2 | ||
Redevelopment | 90.2 | ||
Start-up capital projects | 69.0 | ||
Total capital expenditures | $ | 489.1 |
(1) | Includes the construction of 1,255 communications sites globally. |
(2) | Includes $13.8 million of capital lease payments included in Repayments of notes payable, credit facilities, senior notes, term loan and capital leases in the cash flow from financing activities in our condensed consolidated statements of cash flows. |
Discretionary capital projects (1) | $ | 170 | to | $ | 200 | ||
Ground lease purchases | 140 | to | 160 | ||||
Capital improvements and corporate expenditures | 125 | to | 135 | ||||
Redevelopment | 155 | to | 175 | ||||
Start-up capital projects | 95 | to | 115 | ||||
Total capital expenditures | $ | 685 | to | $ | 785 |
Nine Months Ended September 30, | |||||
2016 | 2015 | ||||
Proceeds from issuance of senior notes, net | 3,236.4 | 1,492.3 | |||
(Repayments of) proceeds from credit facilities, net | (1,227.1 | ) | 1,960.0 | ||
(Repayments of) proceeds from term loan | (1,000.0 | ) | 500.0 | ||
Distributions paid on common and preferred stock | (732.3 | ) | (573.9 | ) | |
Proceeds from the issuance of common stock, net | — | 2,440.3 | |||
Proceeds from the issuance of preferred stock, net | — | 1,337.9 | |||
Proceeds from issuance of securitized notes | — | 875.0 | |||
Repayments of securitized notes | (94.1 | ) | (960.0 | ) | |
Repayment of senior notes | — | (1,100.0 | ) |
Amount Outstanding (INR) | Amount Outstanding (USD) | Interest Rate (Range) | Maturity Date (Range) | |||||||||||
Term loans | 33,533 | $ | 503.4 | 10.50% - 11.20% | March 31, 2017 - November 30, 2024 | |||||||||
Debenture | 6,000 | $ | 90.1 | 9.90 | % | April 28, 2020 | ||||||||
Working capital facilities | — | — | 9.85% - 11.80% | October 23, 2016 - March 18, 2017 |
Indebtedness | Balance Outstanding | Maturity Date | |||||
American Tower subsidiary debt: | |||||||
Series 2013-1A securities (1) | $ | 500,000 | March 15, 2018 | ||||
Series 2013-2A securities (2) | 1,300,000 | March 15, 2023 | |||||
Series 2015-1 notes (3) | 350,000 | June 15, 2020 | |||||
Series 2015-2 notes (4) | 525,000 | June 16, 2025 | |||||
2012 GTP notes (5) | 174,489 | March 15, 2019 | |||||
Unison notes (6) | 196,000 | Various | |||||
Viom indebtedness (7) | 593,491 | Various | |||||
Viom Preference Shares (8) | 25,021 | Various | |||||
Shareholder loans (9) | 151,723 | Various | |||||
BR Towers debentures (10) | 103,194 | October 15, 2023 | |||||
Colombian credit facility (11) | 60,765 | April 24, 2021 | |||||
South African facility (12) | 51,412 | December 17, 2020 | |||||
Brazil credit facility (13) | 39,298 | January 15, 2022 | |||||
Indian working capital facility (14) | 662 | October 31, 2016 | |||||
Total American Tower subsidiary debt | 4,071,055 | ||||||
American Tower Corporation debt: | |||||||
2013 Credit Facility | 137,692 | June 28, 2019 | |||||
Term Loan | 1,000,000 | January 29, 2021 | |||||
2014 Credit Facility | 1,840,000 | January 29, 2021 | |||||
4.500% senior notes | 1,000,000 | January 15, 2018 | |||||
3.40% senior notes | 1,000,000 | February 15, 2019 | |||||
7.25% senior notes | 300,000 | May 15, 2019 | |||||
2.800% senior notes | 750,000 | June 1, 2020 | |||||
5.050% senior notes | 700,000 | September 1, 2020 | |||||
3.300% senior notes | 750,000 | February 15, 2021 | |||||
3.450% senior notes | 650,000 | September 15, 2021 | |||||
5.900% senior notes | 500,000 | November 1, 2021 | |||||
2.250% senior notes | 600,000 | January 15, 2022 | |||||
4.70% senior notes | 700,000 | March 15, 2022 | |||||
3.50% senior notes | 1,000,000 | January 31, 2023 | |||||
5.00% senior notes | 1,000,000 | February 15, 2024 | |||||
4.000% senior notes | 750,000 | June 1, 2025 | |||||
4.400% senior notes | 500,000 | February 15, 2026 | |||||
3.375% senior notes | 1,000,000 | October 15, 2026 | |||||
3.125% senior notes | 400,000 | January 15, 2027 | |||||
Total American Tower Corporation debt | 14,577,692 | ||||||
Other debt, including capital lease obligations | 130,281 | ||||||
Total obligations | 18,779,028 | ||||||
Discounts, premiums and debt issuance costs | (99,892 | ) | |||||
Total carrying value of obligations | $ | 18,679,136 |
(5) | Secured debt assumed by us in connection with our acquisition of MIPT. Maturity date represents anticipated repayment date; final legal maturity is March 15, 2042. During the nine months ended September 30, 2016, we repaid the $94.1 million outstanding under the Secured Tower Cellular Site Revenue Notes, Series 2012-1 Class A and released 472 sites in connection with this repayment. |
(6) | Secured debt assumed by us in connection with our acquisition of certain legal entities from Unison Holdings LLC and Unison Site Management II, L.L.C. In October 2016, we repaid the $67.0 million outstanding under the Secured Cellular Site Revenue Notes, Series 2010-1, Class C. The anticipated repayment date for the remaining series is April 15, 2020; final legal maturity date is April 15, 2040. |
(7) | Debt primarily assumed by us in connection with the Viom Acquisition. Maturity dates begin March 31, 2017. Denominated in INR. In October 2016, ATC TIPL refinanced 3.6 billion INR ($53.5 million as of September 30, 2016) of Viom assumed indebtedness with borrowings under a new short-term committed loan facility with a borrowing capacity of 5.8 billion INR ($87.1 million as of September 30, 2016) and repaid an additional 1.4 billion INR ($21.0 million as of September 30, 2016) of Viom assumed indebtedness with cash on hand. |
(8) | Mandatorily redeemable preference shares classified as debt, assumed by us in connection with the Viom Acquisition. The shares are to be redeemed in equal parts on March 26, 2017 and March 26, 2018. |
(9) | Reflects balances owed to our joint venture partners in Ghana and Uganda. The Ghana loan is denominated in GHS and the Uganda loan is denominated in U.S. Dollars. |
(10) | Publicly issued debentures assumed by us in connection with our acquisition of BR Towers S.A. Denominated in BRL. |
(11) | Denominated in COP and amortizes through April 24, 2021. |
(12) | Denominated in ZAR and amortizes through December 17, 2020. |
(13) | Denominated in BRL. |
(14) | Denominated in INR. This agreement provides that the maturity date may be extended for additional 30-day periods. |
Compliance Tests For 12 Months Ended September 30, 2016 ($ in billions) | ||||||
Ratio (1) | Additional Debt Capacity Under Covenants (2) | Capacity for Adjusted EBITDA Decrease Under Covenants (3) | ||||
Consolidated Total Leverage Ratio | Total Debt to Adjusted EBITDA ≤ 6.00:1.00 | ~ $3.0 | ~ $0.5 | |||
Consolidated Senior Secured Leverage Ratio | Senior Secured Debt to Adjusted EBITDA ≤ 3.00:1.00 | ~ $6.8 (4) | ~ $2.3 (4) |
Issuer or Borrower | Notes/Securities Issued | Conditions Limiting Distributions of Excess Cash | Excess Cash Distributed During the Nine Months Ended September 30, 2016 | DSCR as of September 30, 2016 | Capacity for Decrease in Net Cash Flow Before Triggering Cash Trap DSCR (1) | Capacity for Decrease in Net Cash Flow Before Triggering Minimum DSCR (1) | ||
Cash Trap DSCR | Amortization Period | |||||||
2015 Securitization | GTP Acquisition Partners | American Tower Secured Revenue Notes, Series 2015-1 and Series 2015-2 | 1.30x, Tested Quarterly (2) | (3)(4) | $138.4 | 7.48x | $165.1 | $169.1 |
2013 Securitization | AMT Asset Subs | Secured Tower Revenue Securities, Series 2013-1A and Series 2013-2A | 1.30x, Tested Quarterly (2) | (3)(5) | $424.9 | 10.95x | $463.8 | $471.0 |
(1) | Based on the net cash flow of the applicable issuer or borrower as of September 30, 2016 and the expenses payable over the next 12 months on the 2015 Notes or the Loan, as applicable. |
(2) | Once triggered, a Cash Trap DSCR condition continues to exist until the DSCR exceeds the Cash Trap DSCR for two consecutive calendar quarters. |
(3) | An amortization period commences if the DSCR is equal to or below 1.15x (the “Minimum DSCR”) at the end of any calendar quarter and continues to exist until the DSCR exceeds the Minimum DSCR for two consecutive calendar quarters. |
(4) | No amortization period is triggered if the outstanding principal amount of a series has not been repaid in full on the applicable anticipated repayment date. However, in such event, additional interest will accrue on the unpaid principal balance of the applicable series, and such series will begin to amortize on a monthly basis from excess cash flow. |
(5) | An amortization period exists if the outstanding principal amount has not been paid in full on the applicable anticipated repayment date and continues to exist until such principal has been repaid in full. |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
ITEM 6. | EXHIBITS |
AMERICAN TOWER CORPORATION | ||||
Date: October 27, 2016 | By: | /S/ THOMAS A. BARTLETT | ||
Thomas A. Bartlett Executive Vice President and Chief Financial Officer (Duly Authorized Officer and Principal Financial Officer) |
EXHIBIT INDEX | ||
Exhibit No. | Description of Document | |
4.1 | Supplemental Indenture No. 6, dated as of September 30, 2016, to Indenture dated as of May 23, 2013, by and between the Company and U.S. Bank National Association, as trustee, for the 2.250% Senior Notes due 2022 and the 3.125% Senior Notes due 2027 (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K on September 30, 2016, and incorporated herein by reference) | |
10.1 | Letter Agreement, dated as of May 4, 2016, as amended, by and between the Company and William H. Hess | |
12 | Statement Regarding Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends | |
31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
32 | Certifications filed pursuant to 18. U.S.C. Section 1350 | |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition |
• | Allowances: You shall be eligible for USD $11,550.00 (Eleven Thousand Five Hundred Fifty US Dollars), an amount equal to approximately €10,000 (Ten Thousand Euros) per month which is inclusive of Housing, Educational (for any school age dependent children accompanying you to |
• | Relocation: Reimbursement of pre-move relocation expenses, including reasonable round trip airfare transportation and expenses for you and your spouse to find housing, reimbursement of household goods shipment, reimbursement of cost of storage of personal effects for duration of assignment if needed, loss on sale of up to two cars, and temporary living in Host Country if needed. |
• | Home Leave: Reimbursement of reasonable round trip airfare transportation to your Home Location and reasonable expenses and transit costs en route for you and your dependents two times during each twelve month period with expenses and transit costs that are consistent with the Business Travel and Entertainment Policy. The class of travel will be determined by the International Assignment Policy, which currently states that travel in excess of six hours may be upgraded to business class airfare. Home leave counts towards holiday/flex time and this can be taken at your discretion at any time during the assignment subject to the normal approval process. Travel to locations other than your Home Location will not be reimbursed. |
• | Visa/Immigration: Terms and conditions expressed in this letter of assignment are contingent upon receipt of an approved working permit and visa by the corresponding Netherlands immigration authorities. American Tower and the Company, will assist you in securing any necessary visa, registration and immigration paperwork for you and your dependents, and will cover any charges reasonably incurred in this process. |
• | Repatriation: Upon completion of this Assignment you and your dependents will be placed back to Boston (MA), United States. |
• | Other Social Charges: In the event that there are any other compulsory insurances, taxes or contributions to social services on your part in Netherlands, American Tower or the Company or its affiliate will cover them through direct payment or reimbursement to you, and such payment will be considered as part of the annual tax equalization process. |
• | Benefits: As an expatriate on oversees assignment, you will be offered the opportunity to participate in the international medical and dental coverage that American Tower has in place, with coverage provided through Cigna Global Health Benefits. American Tower or the Company will cover the cost of this international medical and dental policy, for you and your dependents, during the duration of this Assignment to the extent it is higher in terms of employee cost than comparable coverage in the United States. You remain eligible to participate in all other U.S. benefit programs, including but not limited to life and disability insurance programs and the 401(k) Plan. Participation in all benefit programs must be in accordance with the terms of each plan and/or program. American Tower reserves the right to amend, update, modify and/or terminate any or all of these programs. |
• | Emergency Leave: You will be reimbursed for the cost of reasonable round trip airfare consistent with American Tower’s Business Travel and Entertainment Policy should you need to return to United States for a personal or medical emergency, such as a death in the family or serious medical illness during this Assignment. Emergency leave should be communicated with your Manager as soon as possible and approval by your Supervisor should be obtained in advance, where possible. |
• | Taxes, Tax Equalization and Tax Preparation: It is the philosophy of American Tower that you pay no more or no less tax than you would in your home country, if you were not on assignment. Therefore, |
/s/ William H. Hess | 5/4/2016 | ||||
William H. Hess | Date |
1. | American Tower Corporation, a Delaware corporation, having its principal place of business at 116 Huntington Ave., 11th Floor, Boston, MA 02116, duly represented by Edmund DiSanto, hereinafter referred to as the “Employer” |
2. | William Harrold Hess, born on March 19, 1963, domiciled at Weteringschans 95hs, 1017 RZ Amsterdam, The Netherlands , hereinafter referred to as the “Employee” |
• | Employer and Employee have agreed to an employment agreement for a period of 2 years starting on June 1, 2016; |
• | Employee and Employer wishes to make use of the so-called 30%-ruling, as laid down in the relevant provisions of the 1964 Dutch Wage Tax Act and the 1965 Dutch Wage Tax Implementation Decree; |
• | Employer and Employee will therefore file an application for the 30%-ruling; |
a) | If and to the extent that, based on article 10ea of the Dutch Wage Tax Implementation Decree 1965 (“DWTID 1965”), the Employee is eligible for a defined tax-free reimbursement for extra-territorial expenses (under the so called work-related cost scheme) or a tax free reimbursement in case the regime of tax-free reimbursement and benefits in kind is still applicable, it will be agreed that the remuneration for present employment agreed with the Employee will be reduced for labour law purposes in such a way that 100/70 of the thus agreed remuneration for present employment is equal to the originally agreed remuneration for present employment. |
b) | If and to the extent that part (a) is applied, the Employee shall receive from the Employer a reimbursement for extra-territorial expenses equal to 30/70 of the thus agreed remuneration for present employment. |
c) | The Employee and the Employer are aware of the fact that implementing the tax free reimbursement for extra-territorial expenses cannot result in a lower taxable salary as referred to in article 10eb of DWTID 1965 and the fact that the tax free reimbursement for extra-territorial expenses may be less than 30/70 of the thus agreed remuneration. |
d) | The Employee is aware of the fact that adjustment of the agreed remuneration pursuant to (a) may in view of the applicable regulations have consequences for all remuneration-related benefits and payments (such as pension payments and social security benefits). |
Boston, MA | October __, 2016 |
/s/ Edmund DiSanto | /s/ William Harrold Hess | ||||
Edmund DiSanto | William Harrold Hess |
Nine months ended September 30, | ||||||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | |||||||||||||||||||
Computation of Earnings: | ||||||||||||||||||||||||
Income from continuing operations before income taxes and income on equity method investments | $ | 506,895 | $ | 701,294 | $ | 541,749 | $ | 865,704 | $ | 829,962 | $ | 832,177 | ||||||||||||
Add: | ||||||||||||||||||||||||
Interest expense (1) | 313,328 | 403,150 | 459,779 | 581,716 | 596,769 | 531,922 | ||||||||||||||||||
Operating leases | 109,817 | 125,706 | 148,573 | 196,491 | 241,430 | 217,760 | ||||||||||||||||||
Amortization of interest capitalized | 2,218 | 2,315 | 2,406 | 2,547 | 2,638 | 2,021 | ||||||||||||||||||
Earnings as adjusted | 932,258 | 1,232,465 | 1,152,507 | 1,646,458 | 1,670,799 | 1,583,880 | ||||||||||||||||||
Computation of fixed charges and combined fixed charges and preferred stock dividends: | ||||||||||||||||||||||||
Interest expense (1) | 313,328 | 403,150 | 459,779 | 581,716 | 596,769 | 531,922 | ||||||||||||||||||
Interest capitalized | 2,096 | 1,926 | 1,817 | 2,822 | 1,831 | 1,133 | ||||||||||||||||||
Operating leases | 109,817 | 125,706 | 148,573 | 196,491 | 241,430 | 217,760 | ||||||||||||||||||
Fixed charges | 425,241 | 530,782 | 610,169 | 781,029 | 840,030 | 750,815 | ||||||||||||||||||
Dividends on preferred stock | — | — | — | 23,888 | 90,163 | 80,344 | ||||||||||||||||||
Combined fixed charges and preferred stock dividends | 425,241 | 530,782 | 610,169 | 804,917 | 930,193 | 831,159 | ||||||||||||||||||
Excess in earnings required to cover fixed charges | $ | 507,017 | $ | 701,683 | $ | 542,338 | $ | 865,429 | $ | 830,769 | $ | 833,065 | ||||||||||||
Ratio of earnings to fixed charges (2) | 2.19 | 2.32 | 1.89 | 2.11 | 1.99 | 2.11 | ||||||||||||||||||
Excess in earnings required to cover combined fixed charges and preferred stock dividends | $ | 507,017 | $ | 701,683 | $ | 542,338 | $ | 841,541 | $ | 740,606 | $ | 752,721 | ||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends | 2.19 | 2.32 | 1.89 | 2.05 | 1.80 | 1.91 |
(1) | Interest expense includes amortization of deferred financing costs. Interest expense also includes an amount related to our capital lease with TV Azteca. |
(2) | For the purposes of this calculation, “earnings” consists of income from continuing operations before income taxes and income on equity method investments, as well as fixed charges (excluding interest capitalized and amortization of interest capitalized). “Fixed charges” consists of interest expensed and capitalized, amortization of debt discounts, premiums and related issuance costs and the component of rental expense associated with operating leases believed by management to be representative of the interest factor thereon. |
1. | I have reviewed this Quarterly Report on Form 10-Q of American Tower Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: October 27, 2016 | By: | /S/ JAMES D. TAICLET, JR. | ||||
James D. Taiclet, Jr. | ||||||
Chairman, President and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of American Tower Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: October 27, 2016 | By: | /S/ THOMAS A. BARTLETT | ||||
Thomas A. Bartlett | ||||||
Executive Vice President and Chief Financial Officer |
Date: October 27, 2016 | By: | /S/ JAMES D. TAICLET, JR. | ||||
James D. Taiclet, Jr. | ||||||
Chairman, President and Chief Executive Officer | ||||||
Date: October 27, 2016 | By: | /S/ THOMAS A. BARTLETT | ||||
Thomas A. Bartlett | ||||||
Executive Vice President and Chief Financial Officer |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Oct. 20, 2016 |
|
Document And Entity Information [Abstract] | ||
Entity Registrant Name | AMERICAN TOWER CORP /MA/ | |
Entity Central Index Key | 0001053507 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 425,687,843 |
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Stock-based compensation expense | $ 20,226 | $ 18,345 | $ 70,212 | $ 72,251 |
TV Azteca | ||||
Interest expense | 279 | 40 | 846 | 780 |
Property | ||||
Stock-based compensation expense | 426 | 396 | 1,325 | 1,218 |
Services | ||||
Stock-based compensation expense | 172 | 99 | 578 | 336 |
Selling General Administrative And Development Expense | ||||
Stock-based compensation expense | 19,628 | 17,850 | 68,309 | 70,697 |
Other Expense | ||||
Unrealized foreign currency (losses) gains | $ (8,321) | $ (77,864) | $ (3,544) | $ (107,871) |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net change in fair value of cash flow hedges, tax benefit (expense) | $ 0 | $ 9 | $ 0 | $ 18 |
Reclassification of unrealized losses on cash flow hedges to net income, tax benefit | 0 | 20 | 0 | 66 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 108 | (158) | 173 | (2,771) |
Foreign currency translation adjustments, tax expense (benefit) | $ (1,495) | $ (12,863) | $ 5,388 | $ (25,275) |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Statement of Cash Flows [Abstract] | ||
Income tax refunds | $ 16,219 | $ 5,206 |
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands |
Total |
Series B Preferred Stock
Convertible Preferred Stock Subject to Mandatory Redemption
|
Common Class A |
Preferred Stock
Series A Preferred Stock
Convertible Preferred Stock Subject to Mandatory Redemption
|
Preferred Stock
Series B Preferred Stock
Convertible Preferred Stock Subject to Mandatory Redemption
|
Common Stock |
Common Stock
Common Class A
|
Treasury Stock |
Additional Paid-in Capital |
Additional Paid-in Capital
Series B Preferred Stock
Convertible Preferred Stock Subject to Mandatory Redemption
|
Additional Paid-in Capital
Common Class A
|
Accumulated Other Comprehensive Loss |
Distributions in Excess of Earnings |
Noncontrolling Interest |
AOCI Attributable to Noncontrolling Interest |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
BALANCE at Dec. 31, 2014 | $ 4,053,352 | $ 60 | $ 0 | $ 3,995 | $ (207,740) | $ 5,788,786 | $ (794,221) | $ (837,320) | $ 99,792 | ||||||
BALANCE (shares) at Dec. 31, 2014 | 6,000,000 | 0 | 399,508,751 | (2,810,026) | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Stock-based compensation related activity | 79,887 | $ 9 | 79,878 | ||||||||||||
Stock based compensation related activity (shares) | 904,645 | ||||||||||||||
Issuance of common stock | 3,465 | 3,465 | |||||||||||||
Issuance of common stock (shares) | 43,940 | ||||||||||||||
Issuance of stock | $ 1,337,946 | $ 2,440,327 | $ 14 | $ 259 | $ 1,337,932 | $ 2,440,068 | |||||||||
Issuance of stock (shares) | 1,375,000 | 25,850,000 | |||||||||||||
Changes in fair value of cash flow hedges, net of tax | 365 | 377 | (12) | ||||||||||||
Reclassification of unrealized gains on cash flow hedges to net income | 2,771 | 2,728 | 43 | ||||||||||||
Foreign currency translation adjustment, net of tax | (1,077,788) | (1,041,787) | (36,001) | ||||||||||||
Contributions from noncontrolling interest holders | 5,105 | 5,105 | |||||||||||||
Distributions to noncontrolling interest holders | (656) | (656) | |||||||||||||
Common stock dividends/distributions declared | (560,993) | (560,993) | |||||||||||||
Preferred stock dividends declared | (49,991) | (49,991) | |||||||||||||
Net income | 450,412 | 452,372 | (1,960) | ||||||||||||
Net income (loss) | 450,412 | ||||||||||||||
BALANCE at Sep. 30, 2015 | 6,684,202 | $ 60 | $ 14 | $ 4,263 | $ (207,740) | 9,650,129 | (1,832,903) | (995,932) | 66,311 | ||||||
BALANCE (shares) at Sep. 30, 2015 | 6,000,000 | 1,375,000 | 426,307,336 | (2,810,026) | |||||||||||
BALANCE at Dec. 31, 2015 | 6,712,818 | $ 60 | $ 14 | $ 4,267 | $ (207,740) | 9,690,609 | (1,836,996) | (998,535) | 61,139 | ||||||
BALANCE (shares) at Dec. 31, 2015 | 6,000,000 | 1,375,000 | 426,695,279 | (2,810,026) | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Stock-based compensation related activity | 123,376 | $ 17 | 123,359 | ||||||||||||
Stock based compensation related activity (shares) | 1,691,546 | ||||||||||||||
Issuance of common stock | 3,847 | 3,847 | |||||||||||||
Issuance of common stock (shares) | 44,733 | ||||||||||||||
Changes in fair value of cash flow hedges, net of tax | (367) | (367) | |||||||||||||
Reclassification of unrealized gains on cash flow hedges to net income | (173) | (173) | |||||||||||||
Foreign currency translation adjustment, net of tax | (43,282) | (38,838) | (2,306) | $ (41,144) | |||||||||||
Contributions from noncontrolling interest holders | 47 | 47 | |||||||||||||
Distributions to noncontrolling interest holders | (747) | (747) | |||||||||||||
Common stock dividends/distributions declared | (679,002) | (679,002) | |||||||||||||
Preferred stock dividends declared | (80,344) | (80,344) | |||||||||||||
Net income | 737,506 | 727,218 | 8,752 | ||||||||||||
Net income (loss) | 735,970 | ||||||||||||||
BALANCE at Sep. 30, 2016 | $ 6,774,281 | $ 60 | $ 14 | $ 4,284 | $ (207,740) | $ 9,817,815 | $ (1,876,374) | $ (1,030,663) | $ 66,885 | ||||||
BALANCE (shares) at Sep. 30, 2016 | 6,000,000 | 1,375,000 | 428,431,558 | (2,810,026) |
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES American Tower Corporation (together with its subsidiaries, “ATC” or the “Company”) is one of the largest global real estate investment trusts and a leading independent owner, operator and developer of multitenant communications real estate. The Company’s primary business is the leasing of space on communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies and municipalities and tenants in a number of other industries, which the Company refers to as its property operations. Additionally, the Company offers tower-related services, referred to as its services operations, in the United States, including site acquisition, zoning and permitting and structural analysis, which primarily support its site leasing business, including the addition of new tenants and equipment on its sites. The Company’s portfolio primarily consists of towers it owns and towers it operates pursuant to long-term lease arrangements, as well as distributed antenna system (“DAS”) networks, which provide seamless coverage solutions for in-building and certain outdoor wireless environments. In addition to the communications sites in its portfolio, the Company manages rooftop and tower sites for property owners under various contractual arrangements. The Company also holds property interests that it leases to communications service providers and third-party tower operators. ATC is a holding company that conducts its operations through its directly and indirectly owned subsidiaries and its joint ventures. ATC’s principal domestic operating subsidiaries are American Towers LLC and SpectraSite Communications, LLC. ATC conducts its international operations primarily through its subsidiary, American Tower International, Inc., which in turn conducts operations through its various international holding and operating subsidiaries and joint ventures. On April 21, 2016, the Company significantly expanded its Asia segment portfolio by acquiring a 51% controlling ownership interest in Viom Networks Limited (“Viom”), a telecommunications infrastructure company that owns and operates over 42,000 wireless communications towers and 200 indoor DAS networks in India (the “Viom Acquisition”). Subsequent to the closing, Viom was renamed ATC Telecom Infrastructure Private Limited (“ATC TIPL”). The Company operates as a real estate investment trust for U.S. federal income tax purposes (“REIT”). Accordingly, the Company generally is not subject to U.S. federal income taxes on income generated by its REIT operations, including the income derived from leasing space on its towers, as the Company receives a dividends paid deduction for distributions to stockholders that generally offsets its income and gains. However, the Company remains obligated to pay U.S. federal income taxes on earnings from its domestic taxable REIT subsidiaries (“TRSs”). In addition, the Company’s international assets and operations, regardless of their designation for U.S. tax purposes, continue to be subject to taxation in the foreign jurisdictions where those assets are held or those operations are conducted. The use of TRSs enables the Company to continue to engage in certain businesses while complying with REIT qualification requirements. The Company may, from time to time, change the election of previously designated TRSs to be included as part of the REIT. As of September 30, 2016, the Company’s REIT-qualified businesses included its U.S. tower leasing business, most of its operations in Costa Rica, Germany and Mexico and a majority of its services segment and indoor DAS networks business. The accompanying consolidated and condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. The financial information included herein is unaudited. However, the Company believes that all adjustments considered necessary for a fair presentation of its financial position and results of operations for such periods have been included herein. The consolidated and condensed consolidated financial statements and related notes should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 (the “2015 Form 10-K”). The results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the entire year. Principles of Consolidation and Basis of Presentation—The accompanying consolidated and condensed consolidated financial statements include the accounts of the Company and those entities in which it has a controlling interest. Investments in entities that the Company does not control are accounted for using the equity or cost method, depending upon the Company’s ability to exercise significant influence over operating and financial policies. All intercompany accounts and transactions have been eliminated. As of September 30, 2016, the Company has a controlling interest in two joint ventures in Ghana and Uganda with MTN Group Limited (“MTN Group”). The joint ventures are controlled by a holding company of which a wholly owned subsidiary of the Company holds a 51% interest and a wholly owned subsidiary of MTN Group holds a 49% interest. In addition, the Company holds an approximate 75% controlling interest in a subsidiary of the Company in South Africa and the South African investors hold an approximate 25% noncontrolling interest. The Company also holds a 51% controlling interest in ATC TIPL. Significant Accounting Policies—The Company’s significant accounting policies are described in note 1 to the Company’s consolidated financial statements included in the 2015 Form 10-K. There have been no material changes to the Company’s significant accounting policies during the nine months ended September 30, 2016. Accounting Standards Updates—In May 2014, the Financial Accounting Standards Board (the “FASB”) issued new revenue recognition guidance, which requires an entity to recognize revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the transfer of promised goods or services to customers. The standard will replace most existing revenue recognition guidance and will become effective for the Company on January 1, 2018. Early adoption is permitted for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2016. The standard permits the use of either the retrospective or cumulative effect transition method. Leases are not included in the scope of this standard. The Company is evaluating the impact this standard will have on its financial statements. In January 2016, the FASB issued new guidance on the recognition and measurement of financial assets and financial liabilities. The guidance amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. The Company does not expect the adoption of this guidance to have a material effect on its financial statements. In February 2016, the FASB issued new guidance on the accounting for leases. The guidance amends the existing accounting standards for lease accounting, including the requirement that lessees recognize assets and liabilities for leases with terms greater than twelve months in the statement of financial position. Under the new guidance, lessor accounting is largely unchanged. This guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018. The standard is required to be applied using a modified retrospective approach for all leases existing at, or entered into after, the beginning of the earliest comparative period presented. The Company is evaluating the impact this standard will have on its financial statements. In March 2016, the FASB issued new guidance on the accounting for share-based payment transactions. The guidance amends the accounting for taxes related to stock-based compensation, including how excess tax benefits and a company’s payments for tax withholdings should be classified. This guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2016. The Company early adopted this standard in the second quarter of 2016 and elected to account for forfeitures as they occur, effective January 1, 2016. The adoption of this guidance was not material to the Company’s consolidated financial statements. Additionally, the Company elected to apply the prospective transition method to the amendments related to the presentation of excess tax benefits in the statements of cash flows. In August 2016, the FASB issued new guidance on certain classifications within the statement of cash flows. The guidance addresses, among other things, how cash receipts and cash payments are presented and classified in the statement of cash flows, including payments for costs related to debt prepayments or extinguishment, as well as payments of contingent consideration after an acquisition. The guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption within an interim period. The Company is evaluating the impact this standard will have on its financial statements. |
PREPAID AND OTHER CURRENT ASSETS |
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PREPAID AND OTHER CURRENT ASSETS | PREPAID AND OTHER CURRENT ASSETS Prepaid and other current assets consisted of the following (in thousands):
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GOODWILL AND OTHER INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying value of goodwill for the Company’s business segments were as follows (in thousands):
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The Company’s other intangible assets subject to amortization consisted of the following:
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The acquired network location intangibles represent the value to the Company of the incremental revenue growth that could potentially be obtained from leasing the excess capacity on acquired communications sites. The acquired customer-related intangibles typically represent the value to the Company of customer contracts and relationships in place at the time of an acquisition or similar transaction, including assumptions regarding estimated renewals. The Company amortizes its acquired network location intangibles and customer-related intangibles on a straight-line basis over their estimated useful lives. As of September 30, 2016, the remaining weighted average amortization period of the Company’s intangible assets, excluding the TV Azteca Economic Rights detailed in note 5 to the Company’s consolidated financial statements included in the 2015 Form 10-K, was 16 years. Amortization of intangible assets for the three and nine months ended September 30, 2016 was $183.9 million and $521.0 million, respectively, and amortization of intangible assets for the three and nine months ended September 30, 2015 was $154.4 million and $412.5 million, respectively. Based on current exchange rates, the Company expects to record amortization expense as follows over the remaining current year and the five subsequent years (in millions):
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ACCRUED EXPENSES |
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ACCRUED EXPENSES | ACCRUED EXPENSES Accrued expenses consisted of the following (in thousands):
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LONG-TERM OBLIGATIONS |
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Long-term Debt, Excluding Current Maturities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM OBLIGATIONS | LONG-TERM OBLIGATIONS Outstanding amounts under the Company’s long-term obligations, reflecting discounts, premiums and debt issuance costs, consisted of the following (in thousands):
_______________ (1) Maturity date represents anticipated repayment date; final legal maturity is March 15, 2043. (2) Maturity date represents anticipated repayment date; final legal maturity is March 15, 2048.
Current portion of long-term obligations—The Company’s current portion of long-term obligations includes (i) 7.2 billion INR ($108.4 million) of indebtedness primarily assumed by the Company in connection with the Viom Acquisition, (ii) 0.8 billion INR ($12.5 million) related to Preference Shares and (iii) $67.4 million outstanding under the Secured Cellular Site Revenue Notes, Series 2010-1, Class C (included in the Unison notes) assumed in connection with the acquisition of Unison. Viom indebtedness—Amounts outstanding and key terms of the Viom indebtedness consisted of the following as of September 30, 2016 (in millions, except percentages):
The Viom indebtedness includes several term loans, ranging from one to ten years, which are generally secured by the borrower’s short-term and long-term assets. Each of the term loans bear interest at the applicable bank’s Marginal Cost of Funds based Lending Rate or base rate, plus a spread. Interest rates on the term loans are fixed until certain annual reset dates. Generally, the term loans can be repaid without penalty on the annual reset dates; earlier repayments require notice to the lenders and are subject to prepayment penalties, typically of 1% to 2%. Scheduled repayment terms include either ratable or staggered amortization with repayments typically commencing between six and 36 months after the initial disbursement of funds. The debenture is secured by the borrower’s long-term assets, including property and equipment and intangible assets. The debenture bears interest at a base rate plus a spread of 0.6%. The base rate is set in advance for each quarterly coupon period. Should the actual base rate be between 9.75% and 10.25%, the revised base rate is assumed to be 10.00% for purposes of the reset. Additionally, the spread is subject to reset 36 and 48 months from the issuance date of April 27, 2015. The holders of the debenture must reach a consensus on the revised spread and the borrower must redeem all of the debentures held by holders from whom consensus is not achieved. Additionally, the debenture is required to be redeemed by the borrower if it does not maintain a minimum credit rating. The Viom indebtedness includes several working capital facilities, most of which are subject to annual renewal, which are generally secured by the borrower’s short-term and long-term assets. The working capital facilities bear interest at rates that are comprised of base rates plus spreads. Generally, the working capital facilities are payable on demand prior to maturity. Viom preference shares—As of September 30, 2016, ATC TIPL had 166,666,666 Preference Shares outstanding, which are required to be redeemed in cash. Accordingly, the Company recognized debt of 1.67 billion INR ($25.0 million) related to the Preference Shares outstanding on the consolidated balance sheet. Unless redeemed earlier, the Preference Shares will be redeemed in two equal installments on March 26, 2017 and March 26, 2018 in an amount equal to ten INR per share along with a redemption premium, as defined in the investment agreement, which equates to a compounded return of 13.5% per annum. ATC TIPL, at its option, may redeem the Preference Shares prior to the aforementioned dates, subject to an additional 2% redemption premium. Senior Notes Offerings 3.300% Senior Notes and 4.400% Senior Notes Offering—On January 12, 2016, the Company completed a registered public offering of $750.0 million aggregate principal amount of 3.300% senior unsecured notes due 2021 (the “3.300% Notes”) and $500.0 million aggregate principal amount of 4.400% senior unsecured notes due 2026 (the “4.400% Notes”). The net proceeds from this offering were approximately $1,237.2 million, after deducting commissions and estimated expenses. The Company used the proceeds to repay existing indebtedness under its multicurrency senior unsecured revolving credit facility entered into in June 2013, as amended (the “2013 Credit Facility”), and for general corporate purposes. The 3.300% Notes will mature on February 15, 2021 and bear interest at a rate of 3.300% per annum. The 4.400% Notes will mature on February 15, 2026 and bear interest at a rate of 4.400% per annum. Accrued and unpaid interest on the notes will be payable in U.S. Dollars semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2016. Interest on the notes is computed on the basis of a 360-day year comprised of twelve 30-day months and commenced accruing on January 12, 2016. 3.375% Senior Notes Offering—On May 13, 2016, the Company completed a registered public offering of $1.0 billion aggregate principal amount of 3.375% senior unsecured notes due 2026 (the “3.375% Notes”). The net proceeds from this offering were approximately $981.5 million, after deducting commissions and estimated expenses. The Company used the proceeds to repay existing indebtedness under the 2013 Credit Facility. The 3.375% Notes will mature on October 15, 2026 and bear interest at a rate of 3.375% per annum. Accrued and unpaid interest on the notes will be payable in U.S. Dollars semi-annually in arrears on April 15 and October 15 of each year, beginning on October 15, 2016. Interest on the notes is computed on the basis of a 360-day year comprised of twelve 30-day months and commenced accruing on May 13, 2016. 2.250% Senior Notes and 3.125% Senior Notes Offering—On September 30, 2016, the Company completed a registered public offering of $600.0 million aggregate principal amount of 2.250% senior unsecured notes due 2022 (the “2.250% Notes”) and $400.0 million aggregate principal amount of 3.125% senior unsecured notes due 2027 (the “3.125% Notes”). The net proceeds from this offering were approximately $990.6 million, after deducting commissions and estimated expenses. The Company used the proceeds to repay existing indebtedness under the Company’s unsecured term loan entered into in October 2013, as amended (the “Term Loan”). The 2.250% Notes will mature on January 15, 2022 and bear interest at a rate of 2.250% per annum. The 3.125% Notes will mature on January 15, 2027 and bear interest at a rate of 3.125% per annum. Accrued and unpaid interest on the notes will be payable in U.S. Dollars semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2017. Interest on the notes is computed on the basis of a 360-day year comprised of twelve 30-day months and commenced accruing on September 30, 2016. The Company entered into interest rate swaps, which were designated as fair value hedges at inception, to hedge against changes in fair value of the debt under the 2.250% Notes resulting from changes in interest rates. As of September 30, 2016, the interest rate on the 2.250% Notes, after giving effect to the interest rate swap agreements, was 1.75%. The Company may redeem each series of notes at any time, in whole or in part, at a redemption price equal to 100% of the principal amount of the notes plus a make-whole premium, together with accrued interest to the redemption date. If the Company redeems the 3.300% Notes on or after January 15, 2021, the 4.400% Notes on or after November 15, 2025, the 3.375% Notes on or after July 15, 2026 or the 3.125% Notes on or after October 15, 2026, it will not be required to pay a make-whole premium. In addition, if the Company undergoes a change of control and corresponding ratings decline, each as defined in the applicable supplemental indenture, it may be required to repurchase all of the applicable notes at a purchase price equal to 101% of the principal amount of such notes, plus accrued and unpaid interest (including additional interest, if any), up to but not including the repurchase date. The notes rank equally with all of the Company’s other senior unsecured debt and are structurally subordinated to all existing and future indebtedness and other obligations of its subsidiaries. The supplemental indentures contain certain covenants that restrict the Company’s ability to merge, consolidate or sell assets and its (together with its subsidiaries’) ability to incur liens. These covenants are subject to a number of exceptions, including that the Company, and its subsidiaries, may incur certain liens on assets, mortgages or other liens securing indebtedness if the aggregate amount of such liens does not exceed 3.5x Adjusted EBITDA, as defined in the applicable supplemental indenture. Bank Facilities 2013 Credit Facility—During the nine months ended September 30, 2016, the Company borrowed an aggregate of $1.4 billion and repaid an aggregate of $2.5 billion of revolving indebtedness under the 2013 Credit Facility. The Company primarily used the borrowings to fund the Viom Acquisition. 2014 Credit Facility—During the nine months ended September 30, 2016, the Company borrowed an aggregate of $80.0 million and repaid an aggregate of $220.0 million of revolving indebtedness under its senior unsecured revolving credit facility entered into in January 2012 and amended and restated in September 2014, as further amended (the “2014 Credit Facility”). On October 17, 2016, the Company borrowed an additional $140.0 million under the 2014 Credit Facility. Term Loan—During the nine months ended September 30, 2016, the Company repaid $1.0 billion of indebtedness under the Term Loan. As of September 30, 2016, the key terms under the 2013 Credit Facility, the 2014 Credit Facility and the Term Loan were as follows:
_______________ (1) LIBOR means the London Interbank Offered Rate. (2) Fee on undrawn portion of each credit facility. (3) Subject to two optional renewal periods. |
FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company determines the fair value of its financial instruments based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Below are the three levels of inputs that may be used to measure fair value:
Items Measured at Fair Value on a Recurring Basis—The fair values of the Company’s financial assets and liabilities that are required to be measured on a recurring basis at fair value were as follows (in thousands):
On September 30, 2016, the Company entered into interest rate swap agreements with an aggregate notional value of $600.0 million related to the 2.250% Notes. The interest rate swap agreements require the Company to pay interest at a variable interest rate of one-month LIBOR plus applicable spreads and to receive fixed interest at a rate of 2.250% through January 15, 2022. During the nine months ended September 30, 2016, the Company has made no changes to the methods described in note 11 to the Company’s consolidated financial statements in the 2015 Form 10-K that it used to measure the fair value of its interest rate swap agreements, the embedded derivative in one of its lease agreements and acquisition-related contingent consideration. The changes in fair value during the nine months ended September 30, 2016 and 2015 were not material to the consolidated financial statements. As of September 30, 2016, the Company estimated the value of all potential acquisition-related contingent consideration required payments to be between zero and $47.7 million, which includes $22.2 million related to an acquisition in South Africa that occurred during the three months ended September 30, 2016. Redeemable Noncontrolling Interests In connection with the Viom Acquisition, the Company entered into a shareholders’ agreement that provides for put options held by certain noncontrolling shareholders. The fair value of the Company’s noncontrolling interests reflected on the consolidated balance sheet are determined using a discounted cash flow approach, which takes into consideration Level 3 unobservable inputs and applies a discount factor. The fair value of the redeemable noncontrolling interests was $1.1 billion at the date of acquisition and was recorded in Redeemable noncontrolling interests in the consolidated balance sheet. See notes 9 and 13 for more information. Items Measured at Fair Value on a Nonrecurring Basis Assets Held and Used—The Company’s long-lived assets are recorded at amortized cost and, if impaired, are adjusted to fair value using Level 3 inputs. During the three and nine months ended September 30, 2016 and 2015, the Company did not record any material asset impairment charges. There were no other items measured at fair value on a nonrecurring basis during the nine months ended September 30, 2016 and 2015. Fair Value of Financial Instruments—The Company’s financial instruments for which the carrying value reasonably approximates fair value at September 30, 2016 and December 31, 2015 include cash and cash equivalents, restricted cash, accounts receivable and accounts payable. The Company’s estimates of fair value of its long-term obligations, including the current portion, are based primarily upon reported market values. For long-term debt not actively traded, fair value is estimated using either indicative price quotes or a discounted cash flow analysis using rates for debt with similar terms and maturities. As of September 30, 2016 and December 31, 2015, the carrying value of long-term obligations, including the current portion, was $18.7 billion and $17.1 billion, respectively. As of September 30, 2016, the fair value of long-term obligations, including the current portion, was $19.5 billion, of which $12.3 billion was measured using Level 1 inputs and $7.2 billion was measured using Level 2 inputs. As of December 31, 2015, the fair value of long-term obligations, including the current portion, was $17.4 billion, of which $8.7 billion was measured using Level 1 inputs and $8.7 billion was measured using Level 2 inputs. |
INCOME TAXES |
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Income Tax Expense (Benefit), Continuing Operations [Abstract] | |
INCOME TAXES | INCOME TAXES The Company provides for income taxes at the end of each interim period based on the estimated effective tax rate (“ETR”) for the full fiscal year. Cumulative adjustments to the Company’s estimate are recorded in the interim period in which a change in the estimated annual ETR is determined. As a REIT, the Company continues to be subject to income taxes on the income of its TRSs and income taxes in foreign jurisdictions where it conducts operations. Under the provisions of the Internal Revenue Code of 1986, as amended, the Company may deduct amounts distributed to stockholders against the income generated by its REIT operations. In addition, the Company is able to offset certain income by utilizing its net operating losses, subject to specified limitations. The Company provides valuation allowances if, based on the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. As described in note 1, effective January 1, 2016, the Company adopted new guidance on the accounting for share-based payment transactions. As part of this new guidance, excess windfall tax benefits and tax deficiencies related to the Company’s stock option exercises and restricted stock unit vestings are recognized as an income tax benefit or expense in the consolidated statements of operations in the period in which the deduction occurs. Excess windfall tax benefits and tax deficiencies are, therefore, not anticipated when determining the annual ETR and are instead recognized in the interim period in which those items occur. As of September 30, 2016 and December 31, 2015, the total unrecognized tax benefits that would impact the ETR, if recognized, were approximately $74.7 million and $28.1 million, respectively. The amount of unrecognized tax benefits during the three and nine months ended September 30, 2016 includes additions to the Company’s existing tax positions of $8.4 million and $47.7 million (including $23.8 million assumed through acquisition), respectively, and reductions due to the expiration of the statute of limitations in certain jurisdictions of $1.8 million during each of the three and nine months ended September 30, 2016. The Company expects the unrecognized tax benefits to change over the next 12 months if certain tax matters ultimately settle with the applicable taxing jurisdiction during this time frame, as described in note 12 to the Company’s consolidated financial statements included in the 2015 Form 10-K. The impact of the amount of these changes to previously recorded uncertain tax positions could range from zero to $12.4 million. The Company recorded penalties and income tax-related interest expense during the three and nine months ended September 30, 2016 of $1.8 million and $7.0 million, respectively, and during the three and nine months ended September 30, 2015 of $0.7 million and $2.3 million, respectively. In addition, due to the expiration of the statute of limitations in certain jurisdictions, the Company reduced its liability for penalties and income tax-related interest expense related to uncertain tax positions during the three and nine months ended September 30, 2016 by $1.6 million and during the three and nine months ended September 30, 2015 by $3.1 million. As of September 30, 2016 and December 31, 2015, the total amount of accrued income tax related interest and penalties included in the consolidated balance sheets was $24.5 million and $20.2 million, respectively. |
STOCK-BASED COMPENSATION |
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Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Summary of Stock-Based Compensation Plans—The Company maintains equity incentive plans that provide for the grant of stock-based awards to its directors, officers and employees. The 2007 Equity Incentive Plan (the “2007 Plan”) provides for the grant of non-qualified and incentive stock options, as well as restricted stock units, restricted stock and other stock-based awards. Exercise prices in the case of non-qualified and incentive stock options are not less than the fair value of the underlying common stock on the date of grant. Equity awards typically vest ratably, generally over four years for time-based restricted stock units (“RSUs”) and stock options and three years for performance-based restricted stock units (“PSUs”). Stock options generally expire ten years from the date of grant. As of September 30, 2016, the Company had the ability to grant stock-based awards with respect to an aggregate of 9.5 million shares of common stock under the 2007 Plan. In addition, the Company maintains an employee stock purchase plan (“ESPP”) pursuant to which eligible employees may purchase shares of the Company’s common stock on the last day of each bi-annual offering period at a 15% discount of the lower of the closing market value on the first or last day of such offering period. The offering periods run from June 1 through November 30 and from December 1 through May 31 of each year. During the three and nine months ended September 30, 2016 and 2015, the Company recorded and capitalized the following stock-based compensation expenses (in thousands):
Stock Options—The fair value of each option granted during the nine months ended September 30, 2016 was estimated on the date of grant using the Black-Scholes option pricing model based on the assumptions noted in the table below. The expected life of stock options (estimated period of time outstanding) was estimated using the vesting term and historical exercise behavior of the Company’s employees. The risk-free interest rate was based on the U.S. Treasury yield with a term that approximated the estimated life in effect at the accounting measurement date. The expected volatility of the underlying stock price was based on historical volatility for a period equal to the expected life of the stock options. The expected annual dividend yield was the Company’s best estimate of expected future dividend yield. Key assumptions used to apply this pricing model during the nine months ended September 30, 2016 were as follows:
The weighted average grant date fair value per share during the nine months ended September 30, 2016 was $14.57. As of September 30, 2016, total unrecognized compensation expense related to unvested stock options was $30.1 million, which is expected to be recognized over a weighted average period of approximately two years. The Company’s option activity for the nine months ended September 30, 2016 was as follows:
Restricted Stock Units—As of September 30, 2016, total unrecognized compensation expense related to unvested RSUs granted under the 2007 Plan was $100.6 million and is expected to be recognized over a weighted average period of approximately two years. Performance-Based Restricted Stock Units—During the nine months ended September 30, 2016, the Company’s Compensation Committee granted an aggregate of 169,340 PSUs to its executive officers (the “2016 PSUs”) and established the performance metrics for this award. During the nine months ended September 30, 2015, the Company’s Compensation Committee granted an aggregate of 70,135 PSUs to its executive officers (the “2015 PSUs”) and established the performance metric for this award. Threshold, target and maximum parameters were established for the metrics for a three-year performance period with respect to the 2016 PSUs and for each year in the three-year performance period with respect to the 2015 PSUs and will be used to calculate the number of shares that will be issuable when the award vests, which may range from zero to 200% of the target amount. At the end of the three-year performance period, the number of shares that vest will depend on the degree of achievement against the pre-established performance goals. PSUs will be paid out in common stock at the end of the performance period, subject generally to the executive’s continued employment. PSUs will accrue dividend equivalents prior to vesting, which will be paid out only in respect of shares actually vested. The performance metric related to the 2015 PSUs is tied to year-over-year growth, and actual results for the metric cannot be determined until the end of each respective fiscal year. As a result, as of September 30, 2016, the Company was unable to determine the annual target for the third year of the performance period for this award. Accordingly, an aggregate of 23,377 PSUs was not included in the table below. Restricted Stock Units and Performance-Based Restricted Stock Units—The Company’s RSU and PSU activity for the nine months ended September 30, 2016 was as follows:
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During the three and nine months ended September 30, 2016, the Company recorded $2.3 million and $5.5 million, respectively, in stock-based compensation expense for equity awards in which the performance goals had been established and were probable of being achieved. The remaining unrecognized compensation expense related to these awards at September 30, 2016 was $14.2 million based on the Company’s current assessment of the probability of achieving the performance goals. The weighted-average period over which the cost will be recognized is approximately two years. |
REDEEMABLE NONCONTROLLING INTERESTS |
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Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||||||||||||
REDEEMABLE NONCONTROLLING INTERESTS | REDEEMABLE NONCONTROLLING INTERESTS Redeemable Noncontrolling Interests—In connection with the Viom Acquisition, the Company, through one of its subsidiaries, entered into a shareholders agreement (the “Shareholders Agreement”) with Viom and the following remaining Viom shareholders: Tata Sons Limited, Tata Teleservices Limited, IDFC Private Equity Fund III, Macquarie SBI Investments Pte Limited and SBI Macquarie Infrastructure Trust (collectively, the “Remaining Shareholders”). The Shareholders Agreement provides for, among other things, put options held by certain of the Remaining Shareholders, which allow the Remaining Shareholders to sell outstanding shares of ATC TIPL, and call options held by the Company, which allow the Company to buy the noncontrolling shares of ATC TIPL. The put options, which are not under the Company’s control, cannot be separated from the noncontrolling interests. As a result, the combination of the noncontrolling interests and the redemption feature require classification as redeemable noncontrolling interests in the consolidated balance sheet, separate from equity. Given the provisions governing the put rights, the redeemable noncontrolling interests are recorded outside of permanent equity at their redemption value. The noncontrolling interests become redeemable after the passage of time, and therefore, the Company records the carrying amount of the noncontrolling interests at the greater of (i) the initial carrying amount, increased or decreased for the noncontrolling interests’ share of net income or loss and foreign currency translation adjustments, and (ii) the redemption value. If required, the Company will adjust the redeemable noncontrolling interests to redemption value on each balance sheet date with changes in redemption value recognized as an adjustment to Distributions in excess of earnings. The put options may be exercised, requiring the Company to purchase the Remaining Shareholders’ equity interests, on specified dates beginning April 1, 2018 through March 31, 2021. The price of the put options will be based on the fair market value of the exercising Remaining Shareholder’s interest in the Company’s India operations at the time the option is exercised. Put options held by certain of the Remaining Shareholders are subject to a floor price of 216 INR per share. The following is a reconciliation of the changes in the Redeemable noncontrolling interests (in thousands):
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EQUITY |
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Stockholders' Equity Attributable to Parent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY | EQUITY Series A Preferred Stock—The Company has 6,000,000 shares of its 5.25% Mandatory Convertible Preferred Stock, Series A, par value $0.01 per share (the “Series A Preferred Stock”) outstanding, which were issued in May 2014. Unless converted or redeemed earlier, each share of the Series A Preferred Stock will automatically convert on May 15, 2017, into between 0.9272 and 1.1591 shares of the Company’s common stock, depending on the applicable market value of the Company’s common stock and subject to anti-dilution adjustments. Subject to certain restrictions, at any time prior to May 15, 2017, holders of the Series A Preferred Stock may elect to convert all or a portion of their shares into common stock at the minimum conversion rate then in effect. Dividends on shares of the Series A Preferred Stock are payable on a cumulative basis when, as and if declared by the Company’s Board of Directors at an annual rate of 5.25% on the liquidation preference of $100.00 per share, on February 15, May 15, August 15 and November 15 of each year, commencing on August 15, 2014 to, and including, May 15, 2017. Series B Preferred Stock—The Company has 13,750,000 depositary shares, each representing a 1/10th interest in a share of its 5.50% Mandatory Convertible Preferred Stock, Series B, par value $0.01 per share (the “Series B Preferred Stock” and, together with the Series A Preferred Stock, the “Mandatory Convertible Preferred Stock”) outstanding, which were issued in March 2015. Unless converted or redeemed earlier, each share of the Series B Preferred Stock will automatically convert on February 15, 2018, into between 8.5911 and 10.3093 shares of the Company’s common stock, depending on the applicable market value of the Company’s common stock and subject to anti-dilution adjustments. Subject to certain restrictions, at any time prior to February 15, 2018, holders of the Series B Preferred Stock may elect to convert all or a portion of their shares into common stock at the minimum conversion rate then in effect. Dividends on shares of the Series B Preferred Stock are payable on a cumulative basis when, as and if declared by the Company’s Board of Directors at an annual rate of 5.50% on the liquidation preference of $1,000.00 per share (and, correspondingly, $100.00 per share with respect to the depositary shares) on February 15, May 15, August 15 and November 15 of each year, commencing on May 15, 2015 to, and including, February 15, 2018. The Company may pay dividends in cash or, subject to certain limitations, in shares of common stock or any combination of cash and shares of common stock. The terms of the Mandatory Convertible Preferred Stock provide that, unless full cumulative dividends have been paid or set aside for payment on all outstanding Mandatory Convertible Preferred Stock for all prior dividend periods, no dividends may be declared or paid on common stock. Sales of Equity Securities—The Company receives proceeds from the sale of its equity securities pursuant to its ESPP and upon exercise of stock options granted under its equity incentive plan. During the nine months ended September 30, 2016, the Company received an aggregate of $76.6 million in proceeds upon exercises of stock options and from the ESPP. Distributions—During the nine months ended September 30, 2016, the Company declared or paid the following cash distributions:
The Company accrues distributions on unvested restricted stock units, which are payable upon vesting. As of September 30, 2016, the amount accrued for distributions payable related to unvested restricted stock units was $5.8 million. During the nine months ended September 30, 2016, the Company paid $2.4 million of distributions upon the vesting of restricted stock units. To maintain its qualification for taxation as a REIT, the Company expects to continue paying distributions, the amount, timing and frequency of which will be determined, and subject to adjustment, by the Company’s Board of Directors. |
EARNINGS PER COMMON SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The following table sets forth basic and diluted net income per common share computational data (in thousands, except per share data):
Shares Excluded From Dilutive Effect—The following shares were not included in the computation of diluted earnings per share because the effect would be anti-dilutive (in thousands, on a weighted average basis):
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COMMITMENTS AND CONTINGENCIES |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation—The Company periodically becomes involved in various claims, lawsuits and proceedings that are incidental to its business. In the opinion of Company management, after consultation with counsel, there are no matters currently pending that would, in the event of an adverse outcome, materially impact the Company’s consolidated financial position, results of operations or liquidity. Verizon Transaction—In March 2015, the Company entered into an agreement with various operating entities of Verizon Communications Inc. (“Verizon”) that provides for the lease, sublease or management of 11,286 wireless communications sites commencing March 27, 2015. The average term of the lease or sublease for all sites at the inception of the agreement was approximately 28 years, assuming renewals or extensions of the underlying ground leases for the sites. The Company has the option to purchase the leased sites in tranches, subject to the applicable lease, sublease or management rights upon its scheduled expiration. Each tower is assigned to an annual tranche, ranging from 2034 to 2047, which represents the outside expiration date for the sublease rights to the towers in that tranche. The purchase price for each tranche is a fixed amount stated in the lease for such tranche plus the fair market value of certain alterations made to the related towers. The aggregate purchase option price for the towers leased and subleased is approximately $5.0 billion. Verizon will occupy the sites as a tenant for an initial term of ten years with eight optional successive five-year terms; each such term shall be governed by standard master lease agreement terms established as a part of the transaction. AT&T Transaction—The Company has an agreement with SBC Communications Inc., a predecessor entity to AT&T Inc. (“AT&T”), that currently provides for the lease or sublease of approximately 2,370 towers commencing between December 2000 and August 2004. Substantially all of the towers are part of the Company’s 2013 securitization transaction. The average term of the lease or sublease for all sites at the inception of the agreement was approximately 27 years, assuming renewals or extensions of the underlying ground leases for the sites. The Company has the option to purchase the sites subject to the applicable lease or sublease upon its expiration. Each tower is assigned to an annual tranche, ranging from 2013 to 2032, which represents the outside expiration date for the sublease rights to that tower. The purchase price for each site is a fixed amount stated in the lease for that site plus the fair market value of certain alterations made to the related tower by AT&T. As of September 30, 2016, the Company has purchased an aggregate of 60 of the subleased towers upon expiration of the applicable agreement. The aggregate purchase option price for the remaining towers leased and subleased is $748.3 million and will accrete at a rate of 10% per annum through the applicable expiration of the lease or sublease of a site. For all such sites purchased by the Company prior to June 30, 2020, AT&T will continue to lease the reserved space at the then-current monthly fee, which shall escalate in accordance with the standard master lease agreement for the remainder of AT&T’s tenancy. Thereafter, AT&T shall have the right to renew such lease for up to four successive five-year terms. For all such sites purchased by the Company subsequent to June 30, 2020, AT&T has the right to continue to lease the reserved space for successive one-year terms at a rent equal to the lesser of the agreed upon market rate or the then-current monthly fee, which is subject to an annual increase based on changes in the U.S. Consumer Price Index. ALLTEL Transaction—In December 2000, the Company entered into an agreement with ALLTEL, a predecessor entity to Verizon Wireless, to acquire towers through a 15-year sublease agreement. Pursuant to the agreement, as amended, with Verizon Wireless, the Company acquired rights to approximately 1,800 towers in tranches between April 2001 and March 2002. The Company has the option to purchase each tower at the expiration of the applicable sublease. The Company exercised the purchase options for approximately 1,525 towers in a single closing to occur on or before November 30, 2016. The Company has provided notice to the tower owner of its intent to exercise the purchase options related to the remaining towers. As of September 30, 2016, the purchase price per tower was $42,844 payable in cash or, at Verizon Wireless’s or its assignee’s option, as applicable, with 769 shares of the Company’s common stock per tower. The aggregate cash purchase option price for the subleased towers was $75.7 million as of September 30, 2016. Other Contingencies—The Company is subject to income tax and other taxes in the geographic areas where it operates, and periodically receives notifications of audits, assessments or other actions by taxing authorities. The Company evaluates the circumstances of each notification based on the information available and records a liability for any potential outcome that is probable or more likely than not unfavorable if the liability is also reasonably estimable. Tenant Leases—The Company’s lease agreements with its tenants vary depending upon the region and the industry of the tenant, and typically have initial terms of ten years with multiple renewal terms at the option of the tenant. Future minimum rental receipts expected from tenants under non-cancellable operating lease agreements in effect at September 30, 2016 were as follows (in millions):
Lease Obligations—The Company leases certain land, office and tower space under operating leases that expire over various terms. Many of the leases contain renewal options with specified increases in lease payments upon exercise of the renewal option. Escalation clauses present in operating leases, excluding those tied to a consumer price index or other inflation-based indices, are recognized on a straight-line basis over the non-cancellable term of the leases. Future minimum rental payments under non-cancellable operating leases include payments for certain renewal periods at the Company’s option because failure to renew could result in a loss of the applicable communications sites and related revenues from tenant leases, thereby making it reasonably assured that the Company will renew the leases. Such payments at September 30, 2016 are as follows (in millions):
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ACQUISITIONS |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUISITIONS | ACQUISITIONS Impact of current year acquisitions—The Company typically acquires communications sites from wireless carriers or other tower operators and subsequently integrates those sites into its existing portfolio of communications sites. The financial results of the Company’s acquisitions have been included in the Company’s consolidated statements of operations for the three and nine months ended September 30, 2016 from the date of the respective acquisition. The date of acquisition, and by extension the point at which the Company begins to recognize the results of an acquisition, may depend on, among other things, the receipt of contractual consents, the commencement and extent of leasing arrangements and the timing of the transfer of title or rights to the assets, which may be accomplished in phases. Sites acquired from communications service providers may never have been operated as a business and may instead have been utilized solely by the seller as a component of its network infrastructure. An acquisition may or may not involve the transfer of business operations or employees. The estimated aggregate impact of the 2016 acquisitions on the Company’s revenues and gross margin for the three months ended September 30, 2016 was approximately $208.1 million and $87.9 million, respectively, and the estimated aggregate impact for the nine months ended September 30, 2016 was approximately $366.1 million and $153.1 million, respectively. The revenues and gross margin amounts also reflect incremental revenues from the addition of new tenants to such sites subsequent to the transaction date. For those acquisitions accounted for as business combinations, the Company recognizes acquisition and merger related expenses in the period in which they are incurred and services are received. Acquisition and merger related expenses may include finder’s fees, advisory, legal, accounting, valuation and other professional or consulting fees, fair value adjustments to contingent consideration and general administrative costs directly related to the transaction. Integration costs include incremental and non-recurring costs necessary to convert data, retain employees and otherwise enable the Company to operate new businesses efficiently. The Company records acquisition and merger related expenses, as well as integration costs, in Other operating expenses in the consolidated statements of operations. During the three and nine months ended September 30, 2016 and 2015, the Company recorded acquisition and merger related expenses and integration costs as follows (in thousands):
The acquisitions described below are accounted for as business combinations and are consistent with the Company’s strategy to expand in selected geographic areas. 2016 Acquisitions Viom Acquisition—On April 21, 2016, the Company, through its wholly owned subsidiary, ATC Asia Pacific Pte. Ltd. (“ATC Asia”), acquired a 51% controlling ownership interest in Viom, a telecommunications infrastructure company that owns and operates over 42,000 wireless communications towers and 200 indoor DAS networks in India, from certain Viom shareholders, including the managing shareholder, SREI Infrastructure Finance Limited, several other minority shareholders and Tata Teleservices Limited, pursuant to its previously announced share purchase agreement. Consideration for the acquisition included 76.4 billion INR in cash ($1.1 billion at the date of acquisition), as well as the assumption of approximately 52.3 billion INR ($0.8 billion at the date of acquisition) of existing debt, which included 1.7 billion INR ($25.1 million at the date of acquisition) of mandatorily redeemable preference shares issued by Viom. On April 21, 2016, the closing date of the Viom Acquisition, ATC Asia’s Shareholders Agreement with the Remaining Shareholders became effective. The Shareholders Agreement provides that, among other things, the Remaining Shareholders will have certain governance, anti-dilution and contractual rights. The Remaining Shareholders will have put options, and ATC Asia will have a call option, subject to the time periods and conditions outlined in the Shareholders Agreement. Other Acquisitions—During the nine months ended September 30, 2016, the Company acquired a total of 784 communications sites in the United States, Brazil, Germany, Nigeria and South Africa for an aggregate purchase price of $185.6 million (including contingent consideration of $8.7 million). Of the total purchase price, $2.1 million is reflected in Accounts payable in the condensed consolidated balance sheet as of September 30, 2016. The purchase prices of certain transactions are subject to post-closing adjustments. The following table summarizes the preliminary allocation of the purchase price for the fiscal year 2016 acquisitions based upon their estimated fair value at the date of acquisition (in thousands). Balances are reflected in the accompanying consolidated balance sheet as of September 30, 2016.
2015 Acquisitions The estimates of the fair value of the assets or rights acquired and liabilities assumed at the date of the applicable acquisition are subject to adjustment during the measurement period (up to one year from the applicable acquisition date). During the nine months ended September 30, 2016, the Company adopted new guidance on the accounting for measurement-period adjustments related to business combinations. This guidance requires that an acquirer make adjustments to the provisional amounts recognized at acquisition date with a corresponding adjustment to goodwill in the current period. Additionally, the effects on earnings of all measurement-period adjustments are included in current period earnings. During the nine months ended September 30, 2016, post-closing adjustments impacted the following 2015 acquisitions: TIM Acquisition—On April 29, 2015, the Company acquired 4,176 communications sites from TIM Celular S.A. (“TIM”) for an initial aggregate purchase price of $644.3 million, which was subsequently reduced by $0.8 million during the nine months ended September 30, 2016. On September 30, 2015, the Company acquired an additional 1,125 communications sites from TIM for an initial aggregate purchase price of $130.9 million. On December 16, 2015, the Company acquired an additional 182 communications sites from TIM for an initial aggregate purchase price of $21.7 million. The purchase price for the December 2015 TIM acquisition remains subject to post-closing adjustments. Pursuant to the terms of the agreement, the Company has the ability to purchase the remaining communications sites as they become available through October 2016, a portion of which was acquired during the nine months ended September 30, 2016. Other—The initial aggregate purchase price of other 2015 acquisitions was subsequently reduced by $0.2 million during the nine months ended September 30, 2016. The following table summarizes the preliminary and updated allocations of the purchase prices paid and the amounts of assets acquired and liabilities assumed for the fiscal year 2015 acquisitions based upon their estimated fair value at the date of acquisition (in thousands).
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Pro Forma Consolidated Results The following table presents the unaudited pro forma financial results as if the 2016 acquisitions had occurred on January 1, 2015 and acquisitions completed in 2015 had occurred on January 1, 2014. The pro forma results do not include any anticipated cost synergies, costs or other integration impacts. Accordingly, such pro forma amounts are not necessarily indicative of the results that actually would have occurred had the transactions been completed on the date indicated, nor are they indicative of the future operating results of the Company.
Other Signed Acquisitions Airtel Tanzania—On March 17, 2016, the Company entered into a definitive agreement with Airtel, through its subsidiary company Airtel Tanzania Limited (“Airtel Tanzania”), pursuant to which the Company may acquire approximately 1,350 of Airtel Tanzania’s communications sites in Tanzania, for total consideration of approximately $179.0 million, subject to customary adjustments. Under the definitive agreement, the Company may pay additional consideration to acquire up to approximately 100 additional communications sites currently in development. The closing of this transaction is subject to customary closing conditions. In light of recent legislation in Tanzania, the Company is negotiating potential adjustments to the definitive agreement in the event a waiver of such legislation is not obtained. |
BUSINESS SEGMENTS |
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Segment Reporting, Measurement Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS SEGMENTS | BUSINESS SEGMENTS In 2015, as a result of recent investment activity, including signed acquisitions, the Company reviewed and changed its reportable segments to divide its international segment into three regional segments: (i) Asia property, (ii) Europe, Middle East and Africa (“EMEA”) property and (iii) Latin America property, resulting in five total segments. The change in reportable segments had no impact on the Company’s consolidated and condensed consolidated financial statements for any periods. However, certain expenses previously reflected in segment selling, general, administrative and development expense have been reclassified and are now reflected as Other selling, general, administrative and development expense. Historical financial information included in this Quarterly Report on Form 10-Q has been adjusted to reflect the change in reportable segments. The Company’s primary business is leasing space on multitenant communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies and municipalities and tenants in a number of other industries. This business is referred to as the Company’s property operations, which as of September 30, 2016, consisted of the following:
The Company has applied the aggregation criteria to operations within the EMEA and Latin America property operating segments on a basis that is consistent with management’s review of information and performance evaluations of these regions. The Company’s services segment offers tower-related services in the United States, including site acquisition, zoning and permitting services and structural analysis services, which primarily support its site leasing business, including the addition of new tenants and equipment on its sites. The services segment is a strategic business unit that offers different services from, and requires different resources, skill sets and marketing strategies than, the property operating segments. The accounting policies applied in compiling segment information below are similar to those described in note 1 to the Company’s consolidated financial statements included in the 2015 Form 10-K. Among other factors, in evaluating financial performance in each business segment, management uses segment gross margin and segment operating profit. The Company defines segment gross margin as segment revenue less segment operating expenses excluding stock-based compensation expense recorded in costs of operations; Depreciation, amortization and accretion; Selling, general, administrative and development expense; and Other operating expenses. The Company defines segment operating profit as segment gross margin less Selling, general, administrative and development expense attributable to the segment, excluding stock-based compensation expense and corporate expenses. For reporting purposes, the Latin America property segment gross margin and segment operating profit also include Interest income, TV Azteca, net. These measures of segment gross margin and segment operating profit are also before Interest income, Interest expense, Gain (loss) on retirement of long-term obligations, Other income (expense), Net income (loss) attributable to noncontrolling interests and Income tax benefit (provision). The categories of expenses indicated above, such as depreciation, have been excluded from segment operating performance as they are not considered in the review of information or the evaluation of results by management. There are no significant revenues resulting from transactions between the Company’s operating segments. All intercompany transactions are eliminated to reconcile segment results and assets to the consolidated statements of operations and consolidated balance sheets. Summarized financial information concerning the Company’s reportable segments for the three and nine months ended September 30, 2016 and 2015 is shown in the following tables. The “Other” column (i) represents amounts excluded from specific segments, such as business development operations, stock-based compensation expense and corporate expenses included in Selling, general, administrative and development expense; Other operating expenses; Interest income; Interest expense; Gain (loss) on retirement of long-term obligations; and Other income (expense), and (ii) reconciles segment operating profit to Income from continuing operations before income taxes, as the amounts are not utilized in assessing each segment’s performance.
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SUBSEQUENT EVENTS |
9 Months Ended |
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Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On October 21, 2016, the Company entered into a definitive agreement to form a joint venture (“ATC Europe”) with PGGM. The joint venture will focus on pursuing telecommunications real estate investment opportunities in select countries on the continent. At closing, the Company will contribute its German assets into ATC Europe and PGGM will acquire a 49% interest in ATC Europe for a purchase price of 248.2 million Euro ($270.2 million as of October 21, 2016), subject to various adjustments at closing. The Company will retain operational control and day-to-day oversight of ATC Europe. |
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) |
9 Months Ended |
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Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | American Tower Corporation (together with its subsidiaries, “ATC” or the “Company”) is one of the largest global real estate investment trusts and a leading independent owner, operator and developer of multitenant communications real estate. The Company’s primary business is the leasing of space on communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies and municipalities and tenants in a number of other industries, which the Company refers to as its property operations. Additionally, the Company offers tower-related services, referred to as its services operations, in the United States, including site acquisition, zoning and permitting and structural analysis, which primarily support its site leasing business, including the addition of new tenants and equipment on its sites. The Company’s portfolio primarily consists of towers it owns and towers it operates pursuant to long-term lease arrangements, as well as distributed antenna system (“DAS”) networks, which provide seamless coverage solutions for in-building and certain outdoor wireless environments. In addition to the communications sites in its portfolio, the Company manages rooftop and tower sites for property owners under various contractual arrangements. The Company also holds property interests that it leases to communications service providers and third-party tower operators. ATC is a holding company that conducts its operations through its directly and indirectly owned subsidiaries and its joint ventures. ATC’s principal domestic operating subsidiaries are American Towers LLC and SpectraSite Communications, LLC. ATC conducts its international operations primarily through its subsidiary, American Tower International, Inc., which in turn conducts operations through its various international holding and operating subsidiaries and joint ventures. On April 21, 2016, the Company significantly expanded its Asia segment portfolio by acquiring a 51% controlling ownership interest in Viom Networks Limited (“Viom”), a telecommunications infrastructure company that owns and operates over 42,000 wireless communications towers and 200 indoor DAS networks in India (the “Viom Acquisition”). Subsequent to the closing, Viom was renamed ATC Telecom Infrastructure Private Limited (“ATC TIPL”). The Company operates as a real estate investment trust for U.S. federal income tax purposes (“REIT”). Accordingly, the Company generally is not subject to U.S. federal income taxes on income generated by its REIT operations, including the income derived from leasing space on its towers, as the Company receives a dividends paid deduction for distributions to stockholders that generally offsets its income and gains. However, the Company remains obligated to pay U.S. federal income taxes on earnings from its domestic taxable REIT subsidiaries (“TRSs”). In addition, the Company’s international assets and operations, regardless of their designation for U.S. tax purposes, continue to be subject to taxation in the foreign jurisdictions where those assets are held or those operations are conducted. The use of TRSs enables the Company to continue to engage in certain businesses while complying with REIT qualification requirements. The Company may, from time to time, change the election of previously designated TRSs to be included as part of the REIT. As of September 30, 2016, the Company’s REIT-qualified businesses included its U.S. tower leasing business, most of its operations in Costa Rica, Germany and Mexico and a majority of its services segment and indoor DAS networks business. The accompanying consolidated and condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. The financial information included herein is unaudited. However, the Company believes that all adjustments considered necessary for a fair presentation of its financial position and results of operations for such periods have been included herein. The consolidated and condensed consolidated financial statements and related notes should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 (the “2015 Form 10-K”). The results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the entire year. |
Principles of Consolidation and Basis of Presentation | The accompanying consolidated and condensed consolidated financial statements include the accounts of the Company and those entities in which it has a controlling interest. Investments in entities that the Company does not control are accounted for using the equity or cost method, depending upon the Company’s ability to exercise significant influence over operating and financial policies. All intercompany accounts and transactions have been eliminated. |
Accounting Standards Updates | In May 2014, the Financial Accounting Standards Board (the “FASB”) issued new revenue recognition guidance, which requires an entity to recognize revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the transfer of promised goods or services to customers. The standard will replace most existing revenue recognition guidance and will become effective for the Company on January 1, 2018. Early adoption is permitted for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2016. The standard permits the use of either the retrospective or cumulative effect transition method. Leases are not included in the scope of this standard. The Company is evaluating the impact this standard will have on its financial statements. In January 2016, the FASB issued new guidance on the recognition and measurement of financial assets and financial liabilities. The guidance amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. The Company does not expect the adoption of this guidance to have a material effect on its financial statements. In February 2016, the FASB issued new guidance on the accounting for leases. The guidance amends the existing accounting standards for lease accounting, including the requirement that lessees recognize assets and liabilities for leases with terms greater than twelve months in the statement of financial position. Under the new guidance, lessor accounting is largely unchanged. This guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018. The standard is required to be applied using a modified retrospective approach for all leases existing at, or entered into after, the beginning of the earliest comparative period presented. The Company is evaluating the impact this standard will have on its financial statements. In March 2016, the FASB issued new guidance on the accounting for share-based payment transactions. The guidance amends the accounting for taxes related to stock-based compensation, including how excess tax benefits and a company’s payments for tax withholdings should be classified. This guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2016. The Company early adopted this standard in the second quarter of 2016 and elected to account for forfeitures as they occur, effective January 1, 2016. The adoption of this guidance was not material to the Company’s consolidated financial statements. Additionally, the Company elected to apply the prospective transition method to the amendments related to the presentation of excess tax benefits in the statements of cash flows. In August 2016, the FASB issued new guidance on certain classifications within the statement of cash flows. The guidance addresses, among other things, how cash receipts and cash payments are presented and classified in the statement of cash flows, including payments for costs related to debt prepayments or extinguishment, as well as payments of contingent consideration after an acquisition. The guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption within an interim period. The Company is evaluating the impact this standard will have on its financial statements. |
PREPAID AND OTHER CURRENT ASSETS (Tables) |
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Prepaid Expense and Other Assets, Current [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid and other current assets | Prepaid and other current assets consisted of the following (in thousands):
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GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the carrying value of goodwill | The changes in the carrying value of goodwill for the Company’s business segments were as follows (in thousands):
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Finite intangible assets | The Company’s other intangible assets subject to amortization consisted of the following:
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Expected future amortization expenses | Based on current exchange rates, the Company expects to record amortization expense as follows over the remaining current year and the five subsequent years (in millions):
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ACCRUED EXPENSES (Tables) |
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Accrued Liabilities, Current [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accrued expenses | Accrued expenses consisted of the following (in thousands):
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LONG-TERM OBLIGATIONS (Tables) |
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Long-term Debt, Excluding Current Maturities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term financing arrangements | Viom indebtedness—Amounts outstanding and key terms of the Viom indebtedness consisted of the following as of September 30, 2016 (in millions, except percentages):
Outstanding amounts under the Company’s long-term obligations, reflecting discounts, premiums and debt issuance costs, consisted of the following (in thousands):
_______________ (1) Maturity date represents anticipated repayment date; final legal maturity is March 15, 2043. (2) Maturity date represents anticipated repayment date; final legal maturity is March 15, 2048.
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Schedule of line of credit facilities | As of September 30, 2016, the key terms under the 2013 Credit Facility, the 2014 Credit Facility and the Term Loan were as follows:
_______________ (1) LIBOR means the London Interbank Offered Rate. (2) Fee on undrawn portion of each credit facility. (3) Subject to two optional renewal periods. |
FAIR VALUE MEASUREMENTS (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value | The fair values of the Company’s financial assets and liabilities that are required to be measured on a recurring basis at fair value were as follows (in thousands):
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STOCK-BASED COMPENSATION (Tables) |
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Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of stock-based compensation expenses | During the three and nine months ended September 30, 2016 and 2015, the Company recorded and capitalized the following stock-based compensation expenses (in thousands):
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Assumptions used to determine the grant date fair value for options granted | Key assumptions used to apply this pricing model during the nine months ended September 30, 2016 were as follows:
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Summary of the company's option activity | The Company’s option activity for the nine months ended September 30, 2016 was as follows:
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Summary of the company's restricted stock unit activity | The Company’s RSU and PSU activity for the nine months ended September 30, 2016 was as follows:
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REDEEMABLE NONCONTROLLING INTERESTS (Tables) |
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Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||||||||||||
Reconciliation of the changes in the redeemable noncontrolling items | The following is a reconciliation of the changes in the Redeemable noncontrolling interests (in thousands):
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EQUITY (Tables) |
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Stockholders' Equity Attributable to Parent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of declared or paid cash distributions | During the nine months ended September 30, 2016, the Company declared or paid the following cash distributions:
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EARNINGS PER COMMON SHARE (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of earnings per basic and diluted by common class | The following table sets forth basic and diluted net income per common share computational data (in thousands, except per share data):
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Schedule of antidilutive securities excluded from computation of earnings per share | The following shares were not included in the computation of diluted earnings per share because the effect would be anti-dilutive (in thousands, on a weighted average basis):
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COMMITMENTS AND CONTINGENCIES (Tables) |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Future minimum rental receipts under operating lease agreements | Future minimum rental receipts expected from tenants under non-cancellable operating lease agreements in effect at September 30, 2016 were as follows (in millions):
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Future minimum rental payments under non-cancelable operating leases | Future minimum rental payments under non-cancellable operating leases include payments for certain renewal periods at the Company’s option because failure to renew could result in a loss of the applicable communications sites and related revenues from tenant leases, thereby making it reasonably assured that the Company will renew the leases. Such payments at September 30, 2016 are as follows (in millions):
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ACQUISITIONS (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of merger and acquisition related costs | During the three and nine months ended September 30, 2016 and 2015, the Company recorded acquisition and merger related expenses and integration costs as follows (in thousands):
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Schedule of recognized identified assets acquired and liabilities assumed | The following table summarizes the preliminary and updated allocations of the purchase prices paid and the amounts of assets acquired and liabilities assumed for the fiscal year 2015 acquisitions based upon their estimated fair value at the date of acquisition (in thousands).
_______________
The following table summarizes the preliminary allocation of the purchase price for the fiscal year 2016 acquisitions based upon their estimated fair value at the date of acquisition (in thousands). Balances are reflected in the accompanying consolidated balance sheet as of September 30, 2016.
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Schedule of pro forma information | The following table presents the unaudited pro forma financial results as if the 2016 acquisitions had occurred on January 1, 2015 and acquisitions completed in 2015 had occurred on January 1, 2014. The pro forma results do not include any anticipated cost synergies, costs or other integration impacts. Accordingly, such pro forma amounts are not necessarily indicative of the results that actually would have occurred had the transactions been completed on the date indicated, nor are they indicative of the future operating results of the Company.
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BUSINESS SEGMENTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting, Measurement Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized financial information concerning the company's reportable segments | Summarized financial information concerning the Company’s reportable segments for the three and nine months ended September 30, 2016 and 2015 is shown in the following tables. The “Other” column (i) represents amounts excluded from specific segments, such as business development operations, stock-based compensation expense and corporate expenses included in Selling, general, administrative and development expense; Other operating expenses; Interest income; Interest expense; Gain (loss) on retirement of long-term obligations; and Other income (expense), and (ii) reconciles segment operating profit to Income from continuing operations before income taxes, as the amounts are not utilized in assessing each segment’s performance.
_______________
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PREPAID AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid operating ground leases | $ 129,515 | $ 128,542 |
Prepaid income tax | 109,949 | 45,056 |
Unbilled receivables | 59,928 | 34,173 |
Prepaid assets | 54,584 | 32,892 |
Value added tax and other consumption tax receivables | 24,519 | 30,239 |
Other miscellaneous current assets | 37,341 | 35,333 |
Total | $ 415,836 | $ 306,235 |
GOODWILL AND OTHER INTANGIBLE ASSETS - EXPECTED FUTURE AMORTIZATION EXPENSE (Details) $ in Millions |
Sep. 30, 2016
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2016 | $ 179.6 |
2017 | 716.2 |
2018 | 714.0 |
2019 | 711.1 |
2020 | 692.3 |
2021 | $ 682.8 |
GOODWILL AND OTHER INTANGIBLE ASSETS - NARRATIVE (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 183.9 | $ 154.4 | $ 521.0 | $ 412.5 |
Weighted Average | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, remaining amortization period | 16 years |
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Accrued Liabilities, Current [Abstract] | ||
Accrued property and real estate taxes | $ 114,839 | $ 75,827 |
Payroll and related withholdings | 63,848 | 62,334 |
Accrued rent | 52,926 | 54,732 |
Accrued construction costs | 19,517 | 19,857 |
Accrued income tax payable | 2,480 | 11,704 |
Other accrued expenses | 318,379 | 291,959 |
Total | $ 571,989 | $ 516,413 |
FAIR VALUE MEASUREMENTS - ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Embedded derivative in lease agreement | $ 0 | $ 0 |
Acquisition-related contingent consideration | 0 | 0 |
Fair Value, Inputs, Level 2 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap agreements | 212 | 692 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Embedded derivative in lease agreement | 13,513 | 14,176 |
Acquisition-related contingent consideration | 21,575 | 12,436 |
Fair Value, Inputs, Level 3 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap agreements | $ 0 | $ 0 |
STOCK-BASED COMPENSATION - SUMMARY OF STOCK-BASED COMPENSATION EXPENSE (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Stock-based compensation expense | $ 20,226 | $ 18,345 | $ 70,212 | $ 72,251 |
Stock-based compensation expense capitalized as property and equipment | $ 353 | $ 495 | $ 1,115 | $ 1,554 |
STOCK-BASED COMPENSATION - ASSUMPTIONS USED TO DETERMINE THE GRANT DATE FAIR VALUE FOR OPTIONS GRANTED (Details) - Employee Stock Option |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Minimum range of risk-free interest rate | 1.00% |
Maximum range of risk-free interest rate | 1.73% |
Weighted average risk-free interest rate | 1.45% |
Minimum range of expected volatility of underlying stock price | 20.64% |
Maximum range of expected volatility of underlying stock price | 21.45% |
Weighted average expected volatility of underlying stock price | 21.45% |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of expected life of stock options | 4 years 6 months |
Range of expected annual dividend yield | 1.85% |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of expected life of stock options | 5 years 2 months 12 days |
Range of expected annual dividend yield | 2.40% |
STOCK-BASED COMPENSATION - SUMMARY OF THE COMPANY'S OPTION ACTIVITY (Details) - Employee Stock Option |
9 Months Ended |
---|---|
Sep. 30, 2016
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding as of January 1, 2016 (in shares) | 7,680,819 |
Granted (in shares) | 1,140,366 |
Exercised (in shares) | (1,263,309) |
Forfeited (in shares) | (16,320) |
Expired (in shares) | (800) |
Outstanding as of September 30, 2016 (in shares) | 7,540,756 |
STOCK-BASED COMPENSATION - SUMMARY OF THE COMPANY'S RESTRICTED STOCK UNIT ACTIVITY (Details) - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2016 |
|
Restricted stock awards | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Outstanding as of January 1, 2016 (in shares) | 1,656,993 | |
Granted (in shares) | 774,739 | |
Vested (in shares) | (641,810) | |
Forfeited (in shares) | (84,461) | |
Outstanding as of September 30, 2016 (in shares) | 1,656,993 | 1,705,461 |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Outstanding as of January 1, 2016 (in shares) | 33,377 | |
Granted (in shares) | 192,719 | |
Vested (in shares) | 0 | |
Forfeited (in shares) | 0 | |
Outstanding as of September 30, 2016 (in shares) | 33,377 | 226,096 |
Vesting period | 3 years |
REDEEMABLE NONCONTROLLING INTERESTS (Details) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2016
₨ / shares
|
Dec. 31, 2015
USD ($)
|
|
Noncontrolling Interest [Abstract] | |||
Temporary equity, redemption price per share (in dollars per share) | ₨ / shares | ₨ 216 | ||
Changes In Redeemable Noncontrolling Interests [Roll Forward] | |||
Temporary Equity, Carrying Amount, Including Portion Attributable to Noncontrolling Interests | $ 0 | ||
Fair value at acquisition | $ 1,100,804 | ||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | 1,536 | ||
Foreign currency translation adjustment attributable to noncontrolling interests | (2,138) | ||
Mandatory redeemable preference shares, value | $ 1,100,202 | $ 0 |
EARNINGS PER COMMON SHARE - SCHEDULE OF SHARES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE (Details) - shares shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Restricted stock awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares issuable upon conversion of the stock-based awards and convertible notes | 0 | 0 | 2 | 0 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares issuable upon conversion of the stock-based awards and convertible notes | 8 | 1,996 | 1,619 | 1,472 |
Preferred stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares issuable upon conversion of the stock-based awards and convertible notes | 17,473 | 17,368 | 17,473 | 14,724 |
COMMITMENTS AND CONTINGENCIES - FUTURE MINIMUM RENTAL RECEIPTS UNDER OPERATING LEASE AGREEMENTS (Details) $ in Millions |
Sep. 30, 2016
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2016 | $ 1,271 |
2017 | 4,710 |
2018 | 4,543 |
2019 | 4,269 |
2020 | 3,916 |
Thereafter | 13,825 |
Total | $ 32,534 |
COMMITMENTS AND CONTINGENCIES - FUTURE MINIMUM RENTAL PAYMENTS UNDER NON-CANCELABLE OPERATING LEASES (Details) $ in Millions |
Sep. 30, 2016
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2016 | $ 244 |
2017 | 912 |
2018 | 886 |
2019 | 854 |
2020 | 815 |
Thereafter | 7,370 |
Total | $ 11,081 |
ACQUISITIONS - SCHEDULE OF MERGER AND ACQUISITION RELATED COSTS (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Business Combinations [Abstract] | ||||
Acquisition and merger related expenses | $ 1,124 | $ 8,587 | $ 7,844 | $ 16,574 |
Integration costs | $ 1,846 | $ 5,938 | $ 8,351 | $ 12,218 |
ACQUISITIONS - PRO FORMA INFORMATION (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Business Acquisition, Pro Forma Information [Abstract] | ||||
Pro forma operating revenues | $ 1,517,197 | $ 1,449,460 | $ 4,498,458 | $ 4,372,304 |
Pro forma net income attributable to American Tower Corporation | $ 238,364 | $ 72,885 | $ 643,780 | $ 346,097 |
Basic net income attributable to American Tower Corporation common stockholders (in dollars per share) | $ 0.56 | $ 0.17 | $ 1.52 | $ 0.82 |
Diluted net income attributable to American Tower Corporation common stockholders (in dollars per share) | $ 0.55 | $ 0.17 | $ 1.50 | $ 0.81 |
SUBSEQUENT EVENTS (Details) - ATC Europe - PGGM - Forecast € in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2016
EUR (€)
|
|
Subsequent Event [Line Items] | ||
Joint venture purchase price | $ 270.2 | € 248.2 |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Ownership interest (as a percent) | 49.00% | 49.00% |
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