(State or other jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Title of each Class | Trading Symbol(s) | Name of exchange on which registered | ||||||
| ||||||||
☒ | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth 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, 2020 | December 31, 2019 | |||||||||||||
ASSETS | ||||||||||||||
CURRENT ASSETS: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Restricted cash | ||||||||||||||
Accounts receivable, net | ||||||||||||||
Prepaid and other current assets | ||||||||||||||
Total current assets | ||||||||||||||
PROPERTY AND EQUIPMENT, net | ||||||||||||||
GOODWILL | ||||||||||||||
OTHER INTANGIBLE ASSETS, net | ||||||||||||||
DEFERRED TAX ASSET | ||||||||||||||
DEFERRED RENT ASSET | ||||||||||||||
RIGHT-OF-USE ASSET | ||||||||||||||
NOTES RECEIVABLE AND OTHER NON-CURRENT ASSETS | ||||||||||||||
TOTAL | $ | $ | ||||||||||||
LIABILITIES | ||||||||||||||
CURRENT LIABILITIES: | ||||||||||||||
Accounts payable | $ | $ | ||||||||||||
Accrued expenses | ||||||||||||||
Distributions payable | ||||||||||||||
Accrued interest | ||||||||||||||
Current portion of operating lease liability | ||||||||||||||
Current portion of long-term obligations | ||||||||||||||
Unearned revenue | ||||||||||||||
Total current liabilities | ||||||||||||||
LONG-TERM OBLIGATIONS | ||||||||||||||
OPERATING LEASE LIABILITY | ||||||||||||||
ASSET RETIREMENT OBLIGATIONS | ||||||||||||||
DEFERRED TAX LIABILITY | ||||||||||||||
OTHER NON-CURRENT LIABILITIES | ||||||||||||||
Total liabilities | ||||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||||
REDEEMABLE NONCONTROLLING INTERESTS | ||||||||||||||
EQUITY (shares in thousands): | ||||||||||||||
Common stock: $ | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Distributions in excess of earnings | ( | ( | ||||||||||||
Accumulated other comprehensive loss | ( | ( | ||||||||||||
Treasury stock ( | ( | ( | ||||||||||||
Total American Tower Corporation equity | ||||||||||||||
Noncontrolling interests | ||||||||||||||
Total equity | ||||||||||||||
TOTAL | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
REVENUES: | ||||||||||||||||||||||||||
Property | $ | $ | $ | $ | ||||||||||||||||||||||
Services | ||||||||||||||||||||||||||
Total operating revenues | ||||||||||||||||||||||||||
OPERATING EXPENSES: | ||||||||||||||||||||||||||
Costs of operations (exclusive of items shown separately below): | ||||||||||||||||||||||||||
Property | ||||||||||||||||||||||||||
Services | ||||||||||||||||||||||||||
Depreciation, amortization and accretion | ||||||||||||||||||||||||||
Selling, general, administrative and development expense | ||||||||||||||||||||||||||
Other operating expenses | ||||||||||||||||||||||||||
Total operating expenses | ||||||||||||||||||||||||||
OPERATING INCOME | ||||||||||||||||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ||||||||||||||||||||||
Loss on retirement of long-term obligations | ( | ( | ( | |||||||||||||||||||||||
Other (expense) income (including foreign currency (losses) gains of $( | ( | ( | ||||||||||||||||||||||||
Total other expense | ( | ( | ( | ( | ||||||||||||||||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | ||||||||||||||||||||||||||
Income tax provision | ( | ( | ( | ( | ||||||||||||||||||||||
NET INCOME | ||||||||||||||||||||||||||
Net loss (income) attributable to noncontrolling interests | ( | ( | ( | |||||||||||||||||||||||
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION STOCKHOLDERS | ||||||||||||||||||||||||||
NET INCOME ATTRIBUTABLE TO AMERICAN TOWER CORPORATION COMMON STOCKHOLDERS | $ | $ | $ | $ | ||||||||||||||||||||||
NET INCOME PER COMMON SHARE AMOUNTS: | ||||||||||||||||||||||||||
Basic net income attributable to American Tower Corporation common stockholders | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted net income attributable to American Tower Corporation common stockholders | $ | $ | $ | $ | ||||||||||||||||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (in thousands): | ||||||||||||||||||||||||||
BASIC | ||||||||||||||||||||||||||
DILUTED |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||
Changes in fair value of cash flow hedges, each net of tax expense of $ | ( | ( | ( | |||||||||||||||||||||||
Reclassification of unrealized losses on cash flow hedges to net income, each net of tax expense of $ | ||||||||||||||||||||||||||
Foreign currency translation adjustments, net of tax (benefit) expense of $( | ( | ( | ( | |||||||||||||||||||||||
Other comprehensive income (loss) | ( | ( | ( | |||||||||||||||||||||||
Comprehensive income | ||||||||||||||||||||||||||
Allocation of accumulated other comprehensive income resulting from purchase of noncontrolling interest and redeemable noncontrolling interest | ( | ( | ||||||||||||||||||||||||
Comprehensive (income) loss attributable to noncontrolling interests | ( | ( | ||||||||||||||||||||||||
Comprehensive income (loss) attributable to American Tower Corporation stockholders | $ | $ | $ | ( | $ |
Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||
Net income | $ | $ | ||||||||||||
Adjustments to reconcile net income to cash provided by operating activities | ||||||||||||||
Depreciation, amortization and accretion | ||||||||||||||
Stock-based compensation expense | ||||||||||||||
Loss on early retirement of long-term obligations | ||||||||||||||
Other non-cash items reflected in statements of operations | ||||||||||||||
Increase in net deferred rent balances | ( | ( | ||||||||||||
Right-of-use asset and Operating lease liability, net | ||||||||||||||
Increase in assets | ( | ( | ||||||||||||
Decrease in liabilities | ( | ( | ||||||||||||
Cash provided by operating activities | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||
Payments for purchase of property and equipment and construction activities | ( | ( | ||||||||||||
Payments for acquisitions, net of cash acquired | ( | ( | ||||||||||||
Proceeds from sale of short-term investments and other non-current assets | ||||||||||||||
Payments for short-term investments | ( | |||||||||||||
Deposits and other | ( | |||||||||||||
Cash used for investing activities | ( | ( | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||
Borrowings under credit facilities | ||||||||||||||
Proceeds from issuance of senior notes, net | ||||||||||||||
Proceeds from term loan | ||||||||||||||
Repayments of notes payable, credit facilities, senior notes, secured debt, term loan and finance leases | ( | ( | ||||||||||||
Distributions to noncontrolling interest holders, net | ( | ( | ||||||||||||
Purchases of common stock | ( | |||||||||||||
Proceeds from stock options and employee stock purchase plan | ||||||||||||||
Distributions paid on common stock | ( | ( | ||||||||||||
Payment for early retirement of long-term obligations | ( | ( | ||||||||||||
Deferred financing costs and other financing activities | ( | ( | ||||||||||||
Purchase of redeemable noncontrolling interest | ( | ( | ||||||||||||
Cash used for financing activities | ( | ( | ||||||||||||
Net effect of changes in foreign currency exchange rates on cash and cash equivalents, and restricted cash | ( | ( | ||||||||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH | ||||||||||||||
CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD | ||||||||||||||
CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD | $ | $ | ||||||||||||
CASH PAID FOR INCOME TAXES (NET OF REFUNDS OF $ | $ | $ | ||||||||||||
CASH PAID FOR INTEREST | $ | $ | ||||||||||||
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||||||||
Purchases of property and equipment under finance leases and perpetual easements | $ | $ | ||||||||||||
Decrease in accounts payable and accrued expenses for purchases of property and equipment and construction activities | $ | ( | $ | ( | ||||||||||
Settlement of third-party debt | $ | ( | $ | |||||||||||
Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Distributions in Excess of Earnings | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2019 and 2020 | Issued Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE, JULY 1, 2019 | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation related activity | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in fair value of cash flow hedges, net of tax | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of unrealized losses on cash flow hedges to net income, net of tax | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax | — | — | — | — | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interest | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Common stock distributions declared | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE, SEPTEMBER 30, 2019 | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
BALANCE, JULY 1, 2020 | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation related activity | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in fair value of cash flow hedges, net of tax | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of unrealized losses on cash flow hedges to net income, net of tax | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Common stock distributions declared | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE, SEPTEMBER 30, 2020 | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Distributions in Excess of Earnings | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2019 and 2020 | Issued Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE, JANUARY 1, 2019 | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation related activity | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock- stock purchase plan | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in fair value of cash flow hedges, net of tax | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of unrealized losses on cash flow hedges to net income, net of tax | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax | — | — | — | — | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interest | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Purchase of redeemable noncontrolling interest | — | — | — | — | ( | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Impact of lease accounting standard adoption | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Common stock distributions declared | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE, SEPTEMBER 30, 2019 | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
BALANCE, JANUARY 1, 2020 | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation related activity | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock- stock purchase plan | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock activity | — | — | ( | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Changes in fair value of cash flow hedges, net of tax | — | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of unrealized losses on cash flow hedges to net income, net of tax | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Purchase of redeemable noncontrolling interest | — | — | — | — | ( | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Common stock distributions declared | — | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE, SEPTEMBER 30, 2020 | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | $ |
Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Restricted cash | ||||||||||||||
Total cash and cash equivalents and restricted cash | $ | $ |
Three Months Ended September 30, 2020 | U.S. | Asia | Africa | Europe | Latin America | Total | ||||||||||||||||||||||||||||||||
Non-lease property revenue | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Services revenue | ||||||||||||||||||||||||||||||||||||||
Total non-lease revenue | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Property lease revenue | ||||||||||||||||||||||||||||||||||||||
Total revenue | $ | $ | $ | $ | $ | $ |
Three Months Ended September 30, 2019 | U.S. | Asia | Africa | Europe | Latin America | Total | ||||||||||||||||||||||||||||||||
Non-lease property revenue | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Services revenue | ||||||||||||||||||||||||||||||||||||||
Total non-lease revenue | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Property lease revenue | ||||||||||||||||||||||||||||||||||||||
Total revenue | $ | $ | $ | $ | $ | $ |
Nine Months Ended September 30, 2020 | U.S. | Asia | Africa | Europe | Latin America | Total | ||||||||||||||||||||||||||||||||
Non-lease property revenue | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Services revenue | ||||||||||||||||||||||||||||||||||||||
Total non-lease revenue | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Property lease revenue | ||||||||||||||||||||||||||||||||||||||
Total revenue | $ | $ | $ | $ | $ | $ |
Nine Months Ended September 30, 2019 | U.S. | Asia | Africa | Europe | Latin America | Total | ||||||||||||||||||||||||||||||||
Non-lease property revenue | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Services revenue | ||||||||||||||||||||||||||||||||||||||
Total non-lease revenue | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Property lease revenue | ||||||||||||||||||||||||||||||||||||||
Total revenue | $ | $ | $ | $ | $ | $ |
As of | ||||||||||||||
September 30, 2020 | December 31, 2019 | |||||||||||||
Prepaid assets | $ | $ | ||||||||||||
Prepaid income tax | ||||||||||||||
Unbilled receivables | ||||||||||||||
Value added tax and other consumption tax receivables | ||||||||||||||
Other miscellaneous current assets | ||||||||||||||
Prepaid and other current assets | $ | $ |
Fiscal Year | Amount (1) | |||||||
Remainder of 2020 | $ | |||||||
2021 | ||||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
Thereafter | ||||||||
Total | $ |
As of | ||||||||||||||
September 30, 2020 | December 31, 2019 | |||||||||||||
Operating leases: | ||||||||||||||
Right-of-use asset | $ | $ | ||||||||||||
Current portion of lease liability | $ | $ | ||||||||||||
Lease liability | ||||||||||||||
Total operating lease liability | $ | $ | ||||||||||||
As of | ||||||||||||||
September 30, 2020 | December 31, 2019 | |||||||||||||
Operating leases: | ||||||||||||||
Weighted-average remaining lease term (years) | ||||||||||||||
Weighted-average incremental borrowing rate | % | % | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Operating lease cost | $ | $ | $ | $ | ||||||||||||||||||||||
Variable lease costs not included in lease liability (1) |
Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||
Operating cash flows from operating leases | $ | ( | $ | ( | ||||||||||
Non-cash items: | ||||||||||||||
New operating leases (1) | $ | $ | ||||||||||||
Operating lease modifications and reassessments | $ | $ |
Fiscal Year | Operating Lease (1) | |||||||
Remainder of 2020 | $ | |||||||
2021 | ||||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
Thereafter | ||||||||
Total lease payments | ||||||||
Less amounts representing interest | ( | |||||||
Total lease liability | ||||||||
Less current portion of lease liability | ( | |||||||
Non-current lease liability | $ |
Property | Services | Total | ||||||||||||||||||||||||||||||||||||||||||
U.S. | Asia | Africa | Europe | Latin America | ||||||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2020 | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Additions and adjustments (1) | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Effect of foreign currency translation | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2020 | $ | $ | $ | $ | $ | $ | $ |
As of September 30, 2020 | As of December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||
Estimated Useful Lives (years) | Gross Carrying Value | Accumulated Amortization | Net Book Value | Gross Carrying Value | Accumulated Amortization | Net Book Value | |||||||||||||||||||||||||||||||||||
Acquired network location intangibles (1) | Up to | $ | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
Acquired tenant-related intangibles | Up to | ( | ( | ||||||||||||||||||||||||||||||||||||||
Acquired licenses and other intangibles | ( | ( | |||||||||||||||||||||||||||||||||||||||
Total other intangible assets | $ | $ | ( | $ | $ | $ | ( | $ |
Fiscal Year | Amount | |||||||
Remainder of 2020 | $ | |||||||
2021 | ||||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
2025 |
As of | ||||||||||||||
September 30, 2020 | December 31, 2019 | |||||||||||||
Accrued construction costs | $ | $ | ||||||||||||
Accrued income tax payable | ||||||||||||||
Accrued pass-through costs | ||||||||||||||
Amounts payable to tenants | ||||||||||||||
Accrued property and real estate taxes | ||||||||||||||
Accrued rent | ||||||||||||||
Payroll and related withholdings | ||||||||||||||
Other accrued expenses | ||||||||||||||
Total accrued expenses | $ | $ |
As of | |||||||||||||||||
September 30, 2020 | December 31, 2019 | Maturity Date | |||||||||||||||
2019 | $ | $ | N/A | ||||||||||||||
2020 Term Loan (1) | February 12, 2021 | ||||||||||||||||
2019 Multicurrency Credit Facility (1) | June 28, 2023 | ||||||||||||||||
2019 Term Loan (1) | January 31, 2025 | ||||||||||||||||
2019 Credit Facility (1) | January 31, 2025 | ||||||||||||||||
N/A | |||||||||||||||||
N/A | |||||||||||||||||
N/A | |||||||||||||||||
N/A | |||||||||||||||||
January 15, 2022 | |||||||||||||||||
March 15, 2022 | |||||||||||||||||
January 31, 2023 | |||||||||||||||||
June 15, 2023 | |||||||||||||||||
February 15, 2024 | |||||||||||||||||
May 15, 2024 | |||||||||||||||||
January 15, 2025 | |||||||||||||||||
March 15, 2025 | |||||||||||||||||
April 4, 2025 | |||||||||||||||||
June 1, 2025 | |||||||||||||||||
September 15, 2025 | |||||||||||||||||
February 15, 2026 | |||||||||||||||||
May 22, 2026 | |||||||||||||||||
October 15, 2026 | |||||||||||||||||
January 15, 2027 | |||||||||||||||||
January 15, 2027 | |||||||||||||||||
July 15, 2027 | |||||||||||||||||
January 15, 2028 | |||||||||||||||||
January 15, 2028 | |||||||||||||||||
March 15, 2029 | |||||||||||||||||
August 15, 2029 | |||||||||||||||||
January 15, 2030 | |||||||||||||||||
June 15, 2030 | |||||||||||||||||
October 15, 2030 | |||||||||||||||||
January 15, 2032 | |||||||||||||||||
October 15, 2049 | |||||||||||||||||
June 15, 2050 | |||||||||||||||||
Total American Tower Corporation debt | |||||||||||||||||
Series 2013-2A securities (7) | March 15, 2023 | ||||||||||||||||
Series 2018-1A securities (7) | March 15, 2028 | ||||||||||||||||
Series 2015-1 notes (8) | N/A | ||||||||||||||||
Series 2015-2 notes (9) | June 16, 2025 | ||||||||||||||||
Other subsidiary debt (10) | Various | ||||||||||||||||
Total American Tower subsidiary debt | |||||||||||||||||
Finance lease obligations | |||||||||||||||||
Total | |||||||||||||||||
Less current portion of long-term obligations | ( | ( | |||||||||||||||
Long-term obligations | $ | $ |
Senior Notes | Aggregate Principal Amount (in millions) | Issue Date and Interest Accrual Date | Maturity Date | Contractual Interest Rate | First Interest Payment | Interest Payments Due (1) | Par Call Date (2) | |||||||||||||||||||||||||||||||||||||
$ | January 10, 2020 | March 15, 2025 | % | September 15, 2020 | March 15 and September 15 | February 15, 2025 | ||||||||||||||||||||||||||||||||||||||
$ | January 10, 2020 | January 15, 2030 | % | July 15, 2020 | January 15 and July 15 | October 15, 2029 | ||||||||||||||||||||||||||||||||||||||
$ | June 3, 2020 | September 15, 2025 | % | March 15, 2021 | March 15 and September 15 | August 15, 2025 | ||||||||||||||||||||||||||||||||||||||
$ | June 3, 2020 | June 15, 2030 | % | December 15, 2020 | June 15 and December 15 | March 15, 2030 | ||||||||||||||||||||||||||||||||||||||
$ | June 3, 2020 | June 15, 2050 | % | December 15, 2020 | June 15 and December 15 | December 15, 2049 | ||||||||||||||||||||||||||||||||||||||
$ | September 10, 2020 | January 15, 2028 | % | January 15, 2021 | January 15 | October 15, 2027 | ||||||||||||||||||||||||||||||||||||||
$ | September 10, 2020 | January 15, 2032 | % | January 15, 2021 | January 15 | October 15, 2031 | ||||||||||||||||||||||||||||||||||||||
$ | September 28, 2020 | October 15, 2030 | % | April 15, 2021 | April 15 and October 15 | July 15, 2030 |
Outstanding Principal Balance (in millions) | Undrawn letters of credit (in millions) | Maturity Date | Current margin over LIBOR (1) | Current commitment fee (2) | |||||||||||||||||||||||||
2019 Multicurrency Credit Facility | $ | (3) | $ | June 28, 2023 | (4) | % | % | ||||||||||||||||||||||
2019 Credit Facility | $ | $ | January 31, 2025 | (4) | % | % | |||||||||||||||||||||||
2019 Term Loan | $ | N/A | January 31, 2025 | % | N/A | ||||||||||||||||||||||||
2020 Term Loan | $ | N/A | February 12, 2021 | % | 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, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Fair Value Measurements Using | Fair Value Measurements Using | |||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||
Interest rate swap agreements | $ | $ | ||||||||||||||||||||||||||||||||||||
Embedded derivative in lease agreement | $ | |||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||
Interest rate swap agreements | $ | $ | ||||||||||||||||||||||||||||||||||||
Fair value of debt related to interest rate swap agreements (1) | $ | $ | ||||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interests | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Penalties and income tax-related interest expense | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Stock-based compensation expense Property | $ | $ | $ | $ | ||||||||||||||||||||||
Stock-based compensation expense Services | ||||||||||||||||||||||||||
Stock-based compensation expense SG&A | ||||||||||||||||||||||||||
Total stock-based compensation expense | $ | $ | $ | $ | ||||||||||||||||||||||
Stock-based compensation expense capitalized as property and equipment | $ | $ | $ | $ |
Number of Options | ||||||||
Outstanding as of January 1, 2020 | ||||||||
Exercised | ( | |||||||
Forfeited | ||||||||
Expired | ||||||||
Outstanding as of September 30, 2020 |
RSUs | PSUs | ||||||||||
Outstanding as of January 1, 2020 (1) | |||||||||||
Granted (2) | |||||||||||
Vested and Released (3) | ( | ( | |||||||||
Forfeited (4) | ( | ( | |||||||||
Outstanding as of September 30, 2020 | |||||||||||
Vested and deferred as of September 30, 2020 (5) |
Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
Balance as of January 1, | $ | $ | ||||||||||||
Net income attributable to noncontrolling interests | ||||||||||||||
Adjustment to noncontrolling interest redemption value | ( | ( | ||||||||||||
Purchase of redeemable noncontrolling interest | ( | ( | ||||||||||||
Foreign currency translation adjustment attributable to noncontrolling interests | ( | ( | ||||||||||||
Balance as of September 30, | $ | $ |
Declaration Date | Payment Date | Record Date | Distribution per share | Aggregate Payment Amount (1) | ||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||
September 10, 2020 | October 16, 2020 | September 28, 2020 | $ | $ | ||||||||||||||||||||||
May 19, 2020 | July 10, 2020 | June 19, 2020 | $ | $ | ||||||||||||||||||||||
March 12, 2020 | April 29, 2020 | April 14, 2020 | $ | $ | ||||||||||||||||||||||
December 11, 2019 | January 14, 2020 | December 27, 2019 | $ | $ | ||||||||||||||||||||||
Declaration Date | Payment Date | Record Date | Distribution per share | Aggregate Payment Amount (1) | ||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||
September 13, 2019 | October 17, 2019 | September 27, 2019 | $ | $ | ||||||||||||||||||||||
May 22, 2019 | July 12, 2019 | June 19, 2019 | $ | $ | ||||||||||||||||||||||
March 7, 2019 | April 26, 2019 | April 11, 2019 | $ | $ | ||||||||||||||||||||||
December 4, 2018 | January 14, 2019 | December 27, 2018 | $ | $ | ||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Net income attributable to American Tower Corporation common stockholders | $ | $ | $ | $ | ||||||||||||||||||||||
Basic weighted average common shares outstanding | ||||||||||||||||||||||||||
Dilutive securities | ||||||||||||||||||||||||||
Diluted weighted average common shares outstanding | ||||||||||||||||||||||||||
Basic net income attributable to American Tower Corporation common stockholders per common share | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted net income attributable to American Tower Corporation common stockholders per common share | $ | $ | $ | $ | ||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Restricted stock units | ||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Acquisition and merger related expenses | $ | $ | $ | $ | ||||||||||||||||||||||
Integration costs | $ | $ | $ | $ |
Allocation (1) | ||||||||
Current assets | $ | |||||||
Property and equipment | ||||||||
Intangible assets (2): | ||||||||
Tenant-related intangible assets | ||||||||
Network location intangible assets | ||||||||
Other intangible assets | ||||||||
Other non-current assets | ||||||||
Current liabilities | ( | |||||||
Deferred tax liability | ||||||||
Other non-current liabilities | ( | |||||||
Net assets acquired | ||||||||
Goodwill | ||||||||
Fair value of net assets acquired | ||||||||
Debt assumed | ||||||||
Purchase price | $ |
Preliminary Allocation | Updated Allocation | |||||||||||||
Current assets | $ | $ | ||||||||||||
Property and equipment | ||||||||||||||
Intangible assets (1): | ||||||||||||||
Tenant-related intangible assets | ||||||||||||||
Network location intangible assets | ||||||||||||||
Other non-current assets | ||||||||||||||
Current liabilities | ( | ( | ||||||||||||
Deferred tax liability | ( | ( | ||||||||||||
Other non-current liabilities | ( | ( | ||||||||||||
Net assets acquired | ||||||||||||||
Goodwill (2) | ||||||||||||||
Fair value of net assets acquired | ||||||||||||||
Debt assumed | ( | ( | ||||||||||||
Purchase price | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Pro forma revenues | $ | $ | $ | $ | ||||||||||||||||||||||
Pro forma net income attributable to American Tower Corporation common stockholders | $ | $ | $ | $ | ||||||||||||||||||||||
Pro forma net income per common share amounts: | ||||||||||||||||||||||||||
Basic net income attributable to American Tower Corporation common stockholders | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted net income attributable to American Tower Corporation common stockholders | $ | $ | $ | $ |
Property | Total Property | Services | Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2020 | U.S. | Asia | Africa | Europe | Latin America | |||||||||||||||||||||||||||||||||||||||||||||||||||
Segment revenues | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Segment operating expenses (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment gross margin | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment selling, general, administrative and development expense (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment operating profit | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other selling, general, administrative and development expense | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation, amortization and accretion | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expense (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Property | Total Property | Services | Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2019 | U.S. | Asia | Africa | Europe | Latin America | |||||||||||||||||||||||||||||||||||||||||||||||||||
Segment revenues | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Segment operating expenses (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment gross margin | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment selling, general, administrative and development expense (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment operating profit | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other selling, general, administrative and development expense | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation, amortization and accretion | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expense (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Property | Total Property | Services | Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2020 | U.S. | Asia | Africa | Europe | Latin America | |||||||||||||||||||||||||||||||||||||||||||||||||||
Segment revenues | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Segment operating expenses (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment gross margin | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment selling, general, administrative and development expense (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment operating profit | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other selling, general, administrative and development expense | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation, amortization and accretion | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expense (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from continuing operations before income taxes | $ |
Property | Total Property | Services | Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2019 | U.S. | Asia | Africa | Europe | Latin America | |||||||||||||||||||||||||||||||||||||||||||||||||||
Segment revenues | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Segment operating expenses (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment gross margin | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment selling, general, administrative and development expense (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment operating profit | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other selling, general, administrative and development expense | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation, amortization and accretion | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expense (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from continuing operations before income taxes | $ |
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. | 25,157 | 15,445 | 402 | |||||||||||||||||
Asia: | ||||||||||||||||||||
India (2) | 73,499 | — | 1,070 | |||||||||||||||||
Africa: | ||||||||||||||||||||
Burkina Faso | 707 | — | — | |||||||||||||||||
Ghana | 3,251 | 665 | 28 | |||||||||||||||||
Kenya | 2,157 | — | 9 | |||||||||||||||||
Niger | 721 | — | — | |||||||||||||||||
Nigeria | 5,573 | — | — | |||||||||||||||||
South Africa (2) | 2,740 | — | — | |||||||||||||||||
Uganda | 3,339 | — | 12 | |||||||||||||||||
Africa total | 18,488 | 665 | 49 | |||||||||||||||||
Europe: | ||||||||||||||||||||
France | 2,508 | 309 | 8 | |||||||||||||||||
Germany | 2,211 | — | — | |||||||||||||||||
Poland (3) | 26 | — | — | |||||||||||||||||
Europe total | 4,745 | 309 | 8 | |||||||||||||||||
Latin America: | ||||||||||||||||||||
Argentina (4) | 110 | — | 10 | |||||||||||||||||
Brazil (4) | 16,776 | 2,255 | 104 | |||||||||||||||||
Chile | 2,911 | — | 22 | |||||||||||||||||
Colombia (2) | 4,993 | — | 4 | |||||||||||||||||
Costa Rica | 654 | — | 2 | |||||||||||||||||
Mexico (5) | 9,451 | 186 | 92 | |||||||||||||||||
Paraguay | 1,426 | — | — | |||||||||||||||||
Peru | 1,897 | 424 | — | |||||||||||||||||
Latin America total | 38,218 | 2,865 | 234 | |||||||||||||||||
Three Months Ended September 30, | Percent Increase (Decrease) | Nine Months Ended September 30, | Percent Increase (Decrease) | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
Property | ||||||||||||||||||||||||||||||||||||||
U.S. | $ | 1,122.3 | $ | 1,095.9 | 2 | % | $ | 3,299.7 | $ | 3,089.4 | 7 | % | ||||||||||||||||||||||||||
Asia | 305.2 | 312.5 | (2) | 863.1 | 922.5 | (6) | ||||||||||||||||||||||||||||||||
Africa | 220.0 | 148.2 | 48 | 651.5 | 433.6 | 50 | ||||||||||||||||||||||||||||||||
Europe | 38.7 | 33.3 | 16 | 107.9 | 100.4 | 7 | ||||||||||||||||||||||||||||||||
Latin America | 301.4 | 331.7 | (9) | 931.8 | 1,010.6 | (8) | ||||||||||||||||||||||||||||||||
Total property | 1,987.6 | 1,921.6 | 3 | 5,854.0 | 5,556.5 | 5 | ||||||||||||||||||||||||||||||||
Services | 25.3 | 32.0 | (21) | 65.0 | 100.1 | (35) | ||||||||||||||||||||||||||||||||
Total revenues | $ | 2,012.9 | $ | 1,953.6 | 3 | % | $ | 5,919.0 | $ | 5,656.6 | 5 | % |
Three Months Ended September 30, | Percent Increase (Decrease) | Nine Months Ended September 30, | Percent Increase (Decrease) | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
Property | ||||||||||||||||||||||||||||||||||||||
U.S. | $ | 915.0 | $ | 888.4 | 3 | % | $ | 2,700.0 | $ | 2,494.0 | 8 | % | ||||||||||||||||||||||||||
Asia | 138.1 | 134.6 | 3 | 373.4 | 378.3 | (1) | ||||||||||||||||||||||||||||||||
Africa | 145.9 | 96.5 | 51 | 430.0 | 275.0 | 56 | ||||||||||||||||||||||||||||||||
Europe | 31.0 | 26.4 | 17 | 86.8 | 80.1 | 8 | ||||||||||||||||||||||||||||||||
Latin America | 205.9 | 228.1 | (10) | 638.7 | 700.1 | (9) | ||||||||||||||||||||||||||||||||
Total property | 1,435.9 | 1,374.0 | 5 | 4,228.9 | 3,927.5 | 8 | ||||||||||||||||||||||||||||||||
Services | 15.1 | 20.3 | (26) | % | 37.8 | 64.6 | (41) | % |
Three Months Ended September 30, | Percent Increase (Decrease) | Nine Months Ended September 30, | Percent Increase (Decrease) | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
Property | ||||||||||||||||||||||||||||||||||||||
U.S. | $ | 38.3 | $ | 44.5 | (14) | % | $ | 117.6 | $ | 128.4 | (8) | % | ||||||||||||||||||||||||||
Asia | 24.1 | 33.1 | (27) | 90.2 | 77.4 | 17 | ||||||||||||||||||||||||||||||||
Africa | 18.5 | 13.7 | 35 | 56.4 | 40.8 | 38 | ||||||||||||||||||||||||||||||||
Europe | 5.3 | 6.0 | (12) | 15.6 | 17.3 | (10) | ||||||||||||||||||||||||||||||||
Latin America | 20.9 | 23.5 | (11) | 67.8 | 75.0 | (10) | ||||||||||||||||||||||||||||||||
Total property | 107.1 | 120.8 | (11) | 347.6 | 338.9 | 3 | ||||||||||||||||||||||||||||||||
Services | 4.2 | 3.4 | 24 | 9.8 | 8.8 | 11 | ||||||||||||||||||||||||||||||||
Other | 64.7 | 63.7 | 2 | 225.0 | 203.1 | 11 | ||||||||||||||||||||||||||||||||
Total selling, general, administrative and development expense | $ | 176.0 | $ | 187.9 | (6) | % | $ | 582.4 | $ | 550.8 | 6 | % |
Three Months Ended September 30, | Percent Increase (Decrease) | Nine Months Ended September 30, | Percent Increase (Decrease) | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
Property | ||||||||||||||||||||||||||||||||||||||
U.S. | $ | 876.7 | $ | 843.9 | 4 | % | $ | 2,582.4 | $ | 2,365.6 | 9 | % | ||||||||||||||||||||||||||
Asia | 114.0 | 101.5 | 12 | 283.2 | 300.9 | (6) | ||||||||||||||||||||||||||||||||
Africa | 127.4 | 82.8 | 54 | 373.6 | 234.2 | 60 | ||||||||||||||||||||||||||||||||
Europe | 25.7 | 20.4 | 26 | 71.2 | 62.8 | 13 | ||||||||||||||||||||||||||||||||
Latin America | 185.0 | 204.6 | (10) | 570.9 | 625.1 | (9) | ||||||||||||||||||||||||||||||||
Total property | 1,328.8 | 1,253.2 | 6 | 3,881.3 | 3,588.6 | 8 | ||||||||||||||||||||||||||||||||
Services | 10.9 | 16.9 | (36) | % | 28.0 | 55.8 | (50) | % |
Three Months Ended September 30, | Percent Increase (Decrease) | Nine Months Ended September 30, | Percent Increase (Decrease) | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
Depreciation, amortization and accretion | $ | 473.9 | $ | 442.8 | 7 | % | $ | 1,401.1 | $ | 1,328.6 | 5 | % |
Three Months Ended September 30, | Percent Increase (Decrease) | Nine Months Ended September 30, | Percent Increase (Decrease) | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
Other operating expenses | $ | 15.3 | $ | 34.7 | (56) | % | $ | 67.7 | $ | 83.5 | (19) | % |
Three Months Ended September 30, | Percent Increase (Decrease) | Nine Months Ended September 30, | Percent Increase (Decrease) | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
Total other expense | $ | 282.9 | $ | 186.3 | 52 | % | $ | 811.8 | $ | 579.6 | 40 | % |
Three Months Ended September 30, | Percent Increase (Decrease) | Nine Months Ended September 30, | Percent Increase (Decrease) | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
Income tax provision | $ | 39.3 | $ | 36.7 | 7 | % | $ | 71.5 | $ | 100.3 | (29) | % | ||||||||||||||||||||||||||
Effective tax rate | 7.8 | % | 6.8 | % | 5.1 | % | 6.9 | % |
Three Months Ended September 30, | Percent Increase (Decrease) | Nine Months Ended September 30, | Percent Increase (Decrease) | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
Net income | $ | 462.9 | $ | 505.3 | (8) | % | $ | 1,329.9 | $ | 1,347.2 | (1) | % | ||||||||||||||||||||||||||
Income tax provision | 39.3 | 36.7 | 7 | 71.5 | 100.3 | (29) | ||||||||||||||||||||||||||||||||
Other expense (income) | 64.5 | (2.8) | (2,404) | 170.8 | (19.6) | (971) | ||||||||||||||||||||||||||||||||
Loss on retirement of long-term obligations | 37.2 | — | 100 | 71.8 | 22.2 | 223 | ||||||||||||||||||||||||||||||||
Interest expense | 190.9 | 201.3 | (5) | 597.4 | 613.3 | (3) | ||||||||||||||||||||||||||||||||
Interest income | (9.7) | (12.2) | (20) | (28.2) | (36.3) | (22) | ||||||||||||||||||||||||||||||||
Other operating expenses | 15.3 | 34.7 | (56) | 67.7 | 83.5 | (19) | ||||||||||||||||||||||||||||||||
Depreciation, amortization and accretion | 473.9 | 442.8 | 7 | 1,401.1 | 1,328.6 | 5 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 24.1 | 23.5 | 3 | 99.0 | 87.9 | 13 | ||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 1,298.4 | $ | 1,229.3 | 6 | % | $ | 3,781.0 | $ | 3,527.1 | 7 | % |
Three Months Ended September 30, | Percent Increase (Decrease) | Nine Months Ended September 30, | Percent Increase (Decrease) | |||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
Net income | $ | 462.9 | $ | 505.3 | (8) | % | $ | 1,329.9 | $ | 1,347.2 | (1) | % | ||||||||||||||||||||||||||
Real estate related depreciation, amortization and accretion | 421.2 | 394.0 | 7 | 1,244.0 | 1,183.2 | 5 | ||||||||||||||||||||||||||||||||
Losses from sale or disposal of real estate and real estate related impairment charges (1) | 9.9 | 32.2 | (69) | 54.3 | 75.7 | (28) | ||||||||||||||||||||||||||||||||
Adjustments for unconsolidated affiliates and noncontrolling interests | (20.5) | (31.5) | (35) | (73.0) | (107.9) | (32) | ||||||||||||||||||||||||||||||||
Nareit FFO attributable to American Tower Corporation common stockholders | $ | 873.5 | $ | 900.0 | (3) | % | $ | 2,555.2 | $ | 2,498.2 | 2 | % | ||||||||||||||||||||||||||
Straight-line revenue | (68.1) | (88.6) | (23) | (178.9) | (99.6) | 80 | ||||||||||||||||||||||||||||||||
Straight-line expense | 12.9 | 11.7 | 10 | 37.8 | 32.9 | 15 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | 24.1 | 23.5 | 3 | 99.0 | 87.9 | 13 | ||||||||||||||||||||||||||||||||
Deferred portion of income tax | 20.9 | 3.6 | 481 | (14.5) | (10.7) | 36 | ||||||||||||||||||||||||||||||||
Non-real estate related depreciation, amortization and accretion | 52.7 | 48.8 | 8 | 157.1 | 145.4 | 8 | ||||||||||||||||||||||||||||||||
Amortization of deferred financing costs, capitalized interest, debt discounts and premiums and long-term deferred interest charges | 7.9 | 7.8 | 1 | 24.4 | 20.6 | 18 | ||||||||||||||||||||||||||||||||
Payment of shareholder loan (2) | — | — | — | (63.3) | (14.2) | 346 | ||||||||||||||||||||||||||||||||
Other expense (income) (3) | 64.5 | (2.8) | (2,404) | 170.8 | (19.6) | (971) | ||||||||||||||||||||||||||||||||
Loss on retirement of long-term obligations | 37.2 | — | 100 | 71.8 | 22.2 | 223 | ||||||||||||||||||||||||||||||||
Other operating expense (4) | 5.4 | 2.5 | 116 | 13.4 | 7.8 | 72 | ||||||||||||||||||||||||||||||||
Capital improvement capital expenditures | (26.8) | (44.6) | (40) | (85.9) | (109.2) | (21) | ||||||||||||||||||||||||||||||||
Corporate capital expenditures | (2.6) | (2.1) | 24 | (7.1) | (7.6) | (7) | ||||||||||||||||||||||||||||||||
Adjustments for unconsolidated affiliates and noncontrolling interests | 20.5 | 31.5 | (35) | 73.0 | 107.9 | (32) | ||||||||||||||||||||||||||||||||
Consolidated AFFO | $ | 1,022.1 | $ | 891.3 | 15 | % | $ | 2,852.8 | $ | 2,662.0 | 7 | % | ||||||||||||||||||||||||||
Adjustments for unconsolidated affiliates and noncontrolling interests (5) | (25.2) | (30.3) | (17) | % | (12.7) | (90.1) | (86) | % | ||||||||||||||||||||||||||||||
AFFO attributable to American Tower Corporation common stockholders | $ | 996.9 | $ | 861.0 | 16 | % | $ | 2,840.1 | $ | 2,571.9 | 10 | % |
As of September 30, 2020 | |||||
Available under the 2019 Multicurrency Credit Facility | $ | 3,100.0 | |||
Available under the 2019 Credit Facility | 1,960.0 | ||||
Letters of credit | (4.6) | ||||
Total available under credit facilities, net | $ | 5,055.4 | |||
Cash and cash equivalents | 1,626.0 | ||||
Total liquidity | $ | 6,681.4 |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Net cash provided by (used for): | |||||||||||
Operating activities | $ | 2,749.1 | $ | 2,758.9 | |||||||
Investing activities | (970.6) | (1,400.8) | |||||||||
Financing activities | (1,519.4) | (1,174.6) | |||||||||
Net effect of changes in foreign currency exchange rates on cash and cash equivalents, and restricted cash | (106.9) | (40.1) | |||||||||
Net increase in cash and cash equivalents, and restricted cash | $ | 152.2 | $ | 143.4 |
Discretionary capital projects (1) | $ | 256.0 | |||
Ground lease purchases (2) | 132.9 | ||||
Capital improvements and corporate expenditures (3) | 93.0 | ||||
Redevelopment | 131.4 | ||||
Start-up capital projects | 83.8 | ||||
Total capital expenditures (4) | $ | 697.1 |
Discretionary capital projects (1) | $ | 415 | to | $ | 455 | ||||||
Ground lease purchases | 180 | to | 190 | ||||||||
Capital improvements and corporate expenditures | 155 | to | 175 | ||||||||
Redevelopment | 200 | to | 210 | ||||||||
Start-up capital projects | 150 | to | 170 | ||||||||
Total capital expenditures | $ | 1,100 | to | $ | 1,200 |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Proceeds from issuance of senior notes, net | $ | 6,232.1 | $ | 3,529.7 | |||||||
Repayments of credit facilities, net | (1,976.0) | (753.0) | |||||||||
Proceeds from term loan | 1,940.0 | 1,300.0 | |||||||||
Repayments of term loan | (2,190.0) | (1,500.0) | |||||||||
Repayments of securitized debt | (350.0) | — | |||||||||
Repayments of senior notes | (2,650.0) | (1,700.0) | |||||||||
Distributions to noncontrolling interest holders, net | (13.8) | (11.6) | |||||||||
Purchase of redeemable noncontrolling interest (1) | (524.4) | (425.7) | |||||||||
Distributions paid on common stock | (1,421.8) | (1,182.2) | |||||||||
Purchases of common stock | (56.0) | — |
Senior Notes | Aggregate Principal Amount (in millions) | Issue Date and Interest Accrual Date | Maturity Date | Contractual Interest Rate | First Interest Payment | Interest Payments Due (1) | Par Call Date (2) | |||||||||||||||||||||||||||||||||||||
2.400% Notes | $ | 750.0 | January 10, 2020 | March 15, 2025 | 2.400 | % | September 15, 2020 | March 15 and September 15 | February 15, 2025 | |||||||||||||||||||||||||||||||||||
2.900% Notes | $ | 750.0 | January 10, 2020 | January 15, 2030 | 2.900 | % | July 15, 2020 | January 15 and July 15 | October 15, 2029 | |||||||||||||||||||||||||||||||||||
1.300% Notes | $ | 500.0 | June 3, 2020 | September 15, 2025 | 1.300 | % | March 15, 2021 | March 15 and September 15 | August 15, 2025 | |||||||||||||||||||||||||||||||||||
2.100% Notes | $ | 750.0 | June 3, 2020 | June 15, 2030 | 2.100 | % | December 15, 2020 | June 15 and December 15 | March 15, 2030 | |||||||||||||||||||||||||||||||||||
3.100% Notes (3) | $ | 1,050.0 | June 3, 2020 | June 15, 2050 | 3.100 | % | December 15, 2020 | June 15 and December 15 | December 15, 2049 | |||||||||||||||||||||||||||||||||||
0.500% Notes (4) | $ | 886.1 | September 10, 2020 | January 15, 2028 | 0.500 | % | January 15, 2021 | January 15 | October 15, 2027 | |||||||||||||||||||||||||||||||||||
1.000% Notes (4) | $ | 768.0 | September 10, 2020 | January 15, 2032 | 1.000 | % | January 15, 2021 | January 15 | October 15, 2031 | |||||||||||||||||||||||||||||||||||
1.875% Notes | $ | 800.0 | September 28, 2020 | October 15, 2030 | 1.875 | % | April 15, 2021 | April 15 and October 15 | July 15, 2030 | |||||||||||||||||||||||||||||||||||
Bank Facility (1) | Outstanding Principal Balance ($ in millions) | Maturity Date | LIBOR borrowing interest rate range (2) | Base rate borrowing interest rate range (2) | Current margin over LIBOR and the base rate, respectively | ||||||||||||||||||
2019 Multicurrency Credit Facility | $ | — | June 28, 2023 | (3) | 0.875% - 1.750% | 0.000% - 0.750% | 1.125% and 0.125% | ||||||||||||||||
2019 Credit Facility | $ | 390.0 | January 31, 2025 | (3) | 0.875% - 1.750% | 0.000% - 0.750% | 1.125% and 0.125% | ||||||||||||||||
2019 Term Loan | $ | 1,000.0 | January 31, 2025 | 0.875% - 1.750% | 0.000% - 0.750% | 1.125% and 0.125% | |||||||||||||||||
2020 Term Loan | $ | 750.0 | February 12, 2021 | 0.650% | 0.000 | % | 0.650% and 0.000% | ||||||||||||||||
Compliance Tests For The 12 Months Ended September 30, 2020 ($ 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 | ~ $5.8 | ~ $1.0 | |||||||||||||||||
Consolidated Senior Secured Leverage Ratio | Senior Secured Debt to Adjusted EBITDA ≤ 3.00:1.00 | ~ $12.8 (4) | ~ $4.3 | |||||||||||||||||
Issuer or Borrower | Notes/Securities Issued | Conditions Limiting Distributions of Excess Cash | Excess Cash Distributed During the Nine Months Ended September 30, 2020 | DSCR as of September 30, 2020 | 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 | |||||||||||||||||||||||||
(in millions) | (in millions) | (in millions) | ||||||||||||||||||||||||
2015 Securitization (2) | GTP Acquisition Partners | American Tower Secured Revenue Notes, Series 2015-1 and Series 2015-2 | 1.30x, Tested Quarterly (3) | (4)(5) | $186.5 | 14.02x | $234.1 | $236.8 | ||||||||||||||||||
Trust Securitizations | AMT Asset Subs | Secured Tower Revenue Securities, Series 2013-2A, Secured Tower Revenue Securities, Series 2018-1, Subclass A and Secured Tower Revenue Securities, Series 2018-1, Subclass R | 1.30x, Tested Quarterly (3) | (4)(6) | $328.6 | 10.94x | $576.3 | $585.2 |
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 |
Incorporated By Reference | ||||||||||||||||||||||||||||||||
Exhibit No. | Description of Document | Form | File No. | Date of Filing | Exhibit No. | |||||||||||||||||||||||||||
3.1 | 8-K | 001-14195 | January 3, 2012 | 3.1 | ||||||||||||||||||||||||||||
3.2 | 8-K | 001-14195 | January 3, 2012 | 3.2 | ||||||||||||||||||||||||||||
3.3 | 8-K | 001-14195 | February 16, 2016 | 3.1 | ||||||||||||||||||||||||||||
4.1 | 8-K | 001-14195 | September 10, 2020 | 4.1 | ||||||||||||||||||||||||||||
4.2 | 8-K | 001-14195 | September 28, 2020 | 4.1 | ||||||||||||||||||||||||||||
31.1 | Filed herewith as Exhibit 31.1 | — | — | — | ||||||||||||||||||||||||||||
31.2 | Filed herewith as Exhibit 31.2 | — | — | — | ||||||||||||||||||||||||||||
32 | Filed herewith as Exhibit 32 | — | — | — | ||||||||||||||||||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | Filed herewith as Exhibit 101 | — | — | — | |||||||||||||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||||||||||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||||||||||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||||||||||||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition | |||||||||||||||||||||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | — | — | — | — |
AMERICAN TOWER CORPORATION | ||||||||||||||
Date: October 29, 2020 | By: | /S/ RODNEY M . SMITH | ||||||||||||
Rodney M. Smith Executive Vice President, Chief Financial Officer and Treasurer (Duly Authorized Officer and Principal Financial Officer) |
Date: October 29, 2020 | By: | /S/ THOMAS A. BARTLETT | |||||||||||||||
Thomas A. Bartlett | |||||||||||||||||
President and Chief Executive Officer |
Date: October 29, 2020 | By: | /S/ RODNEY M. SMITH | |||||||||||||||
Rodney M. Smith | |||||||||||||||||
Executive Vice President, Chief Financial Officer and Treasurer |
Date: October 29, 2020 | By: | /S/ THOMAS A. BARTLETT | ||||||||||||||||||
Thomas A. Bartlett | ||||||||||||||||||||
President and Chief Executive Officer | ||||||||||||||||||||
Date: October 29, 2020 | By: | /S/ RODNEY M. SMITH | ||||||||||||||||||
Rodney M. Smith | ||||||||||||||||||||
Executive Vice President, Chief Financial Officer and Treasurer |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 455,105,000 | 453,541,000 |
Common stock, shares outstanding (in shares) | 444,190,000 | 442,890,000 |
Treasury stock, shares (in shares) | 10,915,000 | 10,651,000 |
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Income Statement [Abstract] | ||||
Foreign currency (losses) gains | $ (49.4) | $ (1.1) | $ (152.7) | $ 13.7 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Statement of Comprehensive Income [Abstract] | ||||
Changes in fair value of cash flow hedges, tax | $ 0.0 | $ 0.0 | $ 0.0 | $ 0.0 |
Reclassification of unrealized gains on cash flow hedges to net income, tax | 0.0 | 0.0 | 0.0 | 0.0 |
Foreign currency translation adjustments, tax expense (benefit) | $ (0.0) | $ (0.0) | $ (0.0) | $ 0.4 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Statement of Cash Flows [Abstract] | ||
Income tax refunds | $ 24.2 | $ 9.5 |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The accompanying consolidated and condensed consolidated financial statements have been prepared by American Tower Corporation (together with its subsidiaries, “ATC” or the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The financial information included herein is unaudited. However, the Company believes that all adjustments, which are of a normal and recurring nature, 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, 2019 (the “2019 Form 10-K”). The results of operations for the three and nine months ended September 30, 2020 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 method or as investments in equity securities, 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, 2020, the Company holds (i) a 51% controlling interest in ATC Europe B.V. (“ATC Europe”), a joint venture that primarily consists of the Company’s operations in France, Germany and Poland (PGGM holds a 49% noncontrolling interest) and (ii) a 79% controlling interest in ATC Telecom Infrastructure Private Limited (“ATC TIPL”), formerly Viom Networks Limited (“Viom”), in India. During the nine months ended September 30, 2020, the Company completed the acquisition of MTN Group Limited’s (“MTN”) 49% redeemable noncontrolling interests in each of the Company’s joint ventures in Ghana and Uganda for total consideration of approximately $524.4 million, including an adjustment of $1.4 million made during the three months ended March 31, 2020, which resulted in an increase in the Company’s controlling interests in such joint ventures from 51% to 100%. The purchase is reflected in the consolidated statements of equity as increases of $142.2 million in each of Additional Paid-in Capital and Accumulated Other Comprehensive Loss and in the consolidated balance sheets as a reduction of $524.4 million in Redeemable noncontrolling interests. Change in Reportable Segments— During the fourth quarter of 2019, the Company’s Europe, Middle East and Africa (“EMEA”) property segment was divided into the Africa property segment and the Europe property segment. As a result, the Company has six reportable segments: U.S. property, Asia property, Africa property, Europe property, Latin America property and services, which are discussed further in note 15. The change in reportable segments had no impact on the Company’s consolidated financial statements for any periods. Historical financial information included in this Quarterly Report on Form 10-Q (this “Quarterly Report”) has been adjusted to reflect the change in reportable segments. Significant Accounting Policies—The Company’s significant accounting policies are described in note 1 to the Company’s consolidated financial statements included in the 2019 Form 10-K. There have been no material changes to the Company’s significant accounting policies during the nine months ended September 30, 2020. Cash and Cash Equivalents and Restricted Cash—The reconciliation of cash and cash equivalents and restricted cash reported within the applicable balance sheet that sum to the total of the same such amounts shown in the statement of cash flows is as follows:
Revenue—The Company’s revenue is derived from leasing the right to use its communications sites and the land on which the sites are located (the “lease component”) and from the reimbursement of costs incurred by the Company in operating the communications sites and supporting the tenants’ equipment as well as other services and contractual rights (the “non-lease component”). Most of the Company’s revenue is derived from leasing arrangements and is accounted for as lease revenue unless the timing and pattern of revenue recognition of the non-lease component differs from the lease component. If the timing and pattern of the non-lease component revenue recognition differs from that of the lease component, the Company separately determines the stand-alone selling prices and pattern of revenue recognition for each performance obligation. Revenue related to distributed antenna system (“DAS”) networks and fiber results from agreements with tenants that are not leases. Non-lease revenue—Non-lease revenue consists primarily of revenue generated from DAS networks, fiber and other property related revenue. DAS networks and fiber arrangements require that the Company provide the tenant the right to use the applicable communications infrastructure. Performance obligations are satisfied over time for the duration of the arrangements. Other property related revenue streams, which include site inspections, are not material on either an individual or consolidated basis. There were no material changes in the receivables, contract assets and contract liabilities from contracts with tenants for the three and nine months ended September 30, 2020. Services revenue—The Company offers tower-related services in the United States. These services include site application, zoning and permitting (“AZP”) and structural analysis. There is a single performance obligation related to AZP and revenue is recognized over time based on milestones achieved, which are determined based on costs expected to be incurred. Structural analysis services may have more than one performance obligation, contingent upon the number of contracted services. Revenue is recognized at the point in time the services are completed. A summary of revenue disaggregated by source and geography is as follows:
Accounting Standards Updates In June 2016, the Financial Accounting Standards Board (the “FASB”) issued guidance that modifies how entities measure credit losses on most financial instruments. The new guidance replaces the current "incurred loss" model with an "expected credit loss" model that requires consideration of a broader range of information to estimate expected credit losses over the lifetime of the asset. Operating lease receivables are not within the scope of this guidance. Effective January 1, 2020, the Company adopted the new guidance using the modified retrospective approach. There was no cumulative-effect adjustment to Distributions in excess of earnings on the consolidated balance sheet as of the effective date. The adoption of this guidance did not have a material impact on the Company’s financial statements. Results for reporting periods beginning January 1, 2020 are presented under the new standard, while prior-period amounts are not adjusted and continue to be reported in accordance with accounting under the previously applicable guidance. In January 2017, the FASB issued guidance on accounting for goodwill impairments. The guidance eliminates Step 2 from the goodwill impairment test and requires, among other things, recognition of an impairment loss when the carrying value of a reporting unit exceeds its fair value. The loss recognized is limited to the total amount of goodwill allocated to that reporting unit. Effective January 1, 2020, the Company adopted the new guidance on a prospective basis. The adoption of this guidance did not have a material impact on the Company’s financial statements. In March 2020, the FASB issued guidance to provide optional expedients and exceptions for applying accounting principles generally accepted in the United States to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The guidance applies only to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the guidance do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022 for which an entity has elected certain optional expedients that are retained through the end of the hedging relationship. As of September 30, 2020, the Company has not modified any contracts as a result of reference rate reform and is evaluating the impact this standard may have on its financial statements.
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PREPAID AND OTHER CURRENT ASSETS |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PREPAID AND OTHER CURRENT ASSETS | PREPAID AND OTHER CURRENT ASSETS Prepaid and other current assets consisted of the following:
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LEASES |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASES The Company determines if an arrangement is a lease at the inception of the agreement. The Company considers an arrangement to be a lease if it conveys the right to control the use of the communications site or ground space underneath a communications site for a period of time in exchange for consideration. The Company is both a lessor and a lessee. During the nine months ended September 30, 2020, the Company made no changes to the methods described in note 4 to its consolidated financial statements included in the 2019 Form 10-K. As of September 30, 2020, the Company does not have any material related party leases as either a lessor or a lessee. Lessor— Historically, the Company has been able to successfully renew its ground leases as needed to ensure continuation of its tower revenue. Accordingly, the Company assumes that it will have access to the land underneath its tower sites when calculating future minimum rental receipts. Future minimum rental receipts expected under non-cancellable operating lease agreements as of September 30, 2020 were as follows:
_______________ (1)Balances are translated at the applicable period-end exchange rate, which may impact comparability between periods. On September 14, 2020, the Company entered into a new master lease agreement with one of its tenants in the U.S., T-Mobile US, Inc. (“T-Mobile”), which, among other things, extended the term and resulted in an additional $17.1 billion in future minimum rental receipts expected under non-cancellable operating lease agreements. Lessee—The Company assesses its right-of-use asset and other lease-related assets for impairment, as described in note 1 to the Company’s consolidated financial statements included in the 2019 Form 10-K. There were no material impairments recorded related to these assets during the three and nine months ended September 30, 2020 and 2019. The Company leases certain land and office space under operating leases and land and improvements, towers and vehicles under finance leases. As of September 30, 2020, operating lease assets were included in Right-of-use asset and finance lease assets were included in Property and equipment, net in the consolidated balance sheet. During the nine months ended September 30, 2020, there were no material changes in the terms and provisions of the Company’s operating leases in which the Company is a lessee. There were no material changes in finance lease assets and liabilities during the nine months ended September 30, 2020. Information about other lease-related balances is as follows:
The weighted-average remaining lease terms and incremental borrowing rates are as follows:
The following table sets forth the components of lease cost:
_______________ (1)Includes property tax paid on behalf of the landlord. Supplemental cash flow information is as follows:
_______________ (1)Amount includes new operating leases and leases acquired in connection with acquisitions. As of September 30, 2020, the Company does not have material operating or financing leases that have not yet commenced. Maturities of operating lease liabilities as of September 30, 2020 were as follows:
_______________ (1)Balances are translated at the applicable period-end exchange rate, which may impact comparability between periods.
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LEASES | LEASES The Company determines if an arrangement is a lease at the inception of the agreement. The Company considers an arrangement to be a lease if it conveys the right to control the use of the communications site or ground space underneath a communications site for a period of time in exchange for consideration. The Company is both a lessor and a lessee. During the nine months ended September 30, 2020, the Company made no changes to the methods described in note 4 to its consolidated financial statements included in the 2019 Form 10-K. As of September 30, 2020, the Company does not have any material related party leases as either a lessor or a lessee. Lessor— Historically, the Company has been able to successfully renew its ground leases as needed to ensure continuation of its tower revenue. Accordingly, the Company assumes that it will have access to the land underneath its tower sites when calculating future minimum rental receipts. Future minimum rental receipts expected under non-cancellable operating lease agreements as of September 30, 2020 were as follows:
_______________ (1)Balances are translated at the applicable period-end exchange rate, which may impact comparability between periods. On September 14, 2020, the Company entered into a new master lease agreement with one of its tenants in the U.S., T-Mobile US, Inc. (“T-Mobile”), which, among other things, extended the term and resulted in an additional $17.1 billion in future minimum rental receipts expected under non-cancellable operating lease agreements. Lessee—The Company assesses its right-of-use asset and other lease-related assets for impairment, as described in note 1 to the Company’s consolidated financial statements included in the 2019 Form 10-K. There were no material impairments recorded related to these assets during the three and nine months ended September 30, 2020 and 2019. The Company leases certain land and office space under operating leases and land and improvements, towers and vehicles under finance leases. As of September 30, 2020, operating lease assets were included in Right-of-use asset and finance lease assets were included in Property and equipment, net in the consolidated balance sheet. During the nine months ended September 30, 2020, there were no material changes in the terms and provisions of the Company’s operating leases in which the Company is a lessee. There were no material changes in finance lease assets and liabilities during the nine months ended September 30, 2020. Information about other lease-related balances is as follows:
The weighted-average remaining lease terms and incremental borrowing rates are as follows:
The following table sets forth the components of lease cost:
_______________ (1)Includes property tax paid on behalf of the landlord. Supplemental cash flow information is as follows:
_______________ (1)Amount includes new operating leases and leases acquired in connection with acquisitions. As of September 30, 2020, the Company does not have material operating or financing leases that have not yet commenced. Maturities of operating lease liabilities as of September 30, 2020 were as follows:
_______________ (1)Balances are translated at the applicable period-end exchange rate, which may impact comparability between periods.
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LEASES | LEASES The Company determines if an arrangement is a lease at the inception of the agreement. The Company considers an arrangement to be a lease if it conveys the right to control the use of the communications site or ground space underneath a communications site for a period of time in exchange for consideration. The Company is both a lessor and a lessee. During the nine months ended September 30, 2020, the Company made no changes to the methods described in note 4 to its consolidated financial statements included in the 2019 Form 10-K. As of September 30, 2020, the Company does not have any material related party leases as either a lessor or a lessee. Lessor— Historically, the Company has been able to successfully renew its ground leases as needed to ensure continuation of its tower revenue. Accordingly, the Company assumes that it will have access to the land underneath its tower sites when calculating future minimum rental receipts. Future minimum rental receipts expected under non-cancellable operating lease agreements as of September 30, 2020 were as follows:
_______________ (1)Balances are translated at the applicable period-end exchange rate, which may impact comparability between periods. On September 14, 2020, the Company entered into a new master lease agreement with one of its tenants in the U.S., T-Mobile US, Inc. (“T-Mobile”), which, among other things, extended the term and resulted in an additional $17.1 billion in future minimum rental receipts expected under non-cancellable operating lease agreements. Lessee—The Company assesses its right-of-use asset and other lease-related assets for impairment, as described in note 1 to the Company’s consolidated financial statements included in the 2019 Form 10-K. There were no material impairments recorded related to these assets during the three and nine months ended September 30, 2020 and 2019. The Company leases certain land and office space under operating leases and land and improvements, towers and vehicles under finance leases. As of September 30, 2020, operating lease assets were included in Right-of-use asset and finance lease assets were included in Property and equipment, net in the consolidated balance sheet. During the nine months ended September 30, 2020, there were no material changes in the terms and provisions of the Company’s operating leases in which the Company is a lessee. There were no material changes in finance lease assets and liabilities during the nine months ended September 30, 2020. Information about other lease-related balances is as follows:
The weighted-average remaining lease terms and incremental borrowing rates are as follows:
The following table sets forth the components of lease cost:
_______________ (1)Includes property tax paid on behalf of the landlord. Supplemental cash flow information is as follows:
_______________ (1)Amount includes new operating leases and leases acquired in connection with acquisitions. As of September 30, 2020, the Company does not have material operating or financing leases that have not yet commenced. Maturities of operating lease liabilities as of September 30, 2020 were as follows:
_______________ (1)Balances are translated at the applicable period-end exchange rate, which may impact comparability between periods.
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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 each of the Company’s business segments were as follows:
_______________ (1)Consists of $148.4 million of measurement period adjustments related to the Eaton Towers Acquisition (as defined in note 14). The Company’s other intangible assets subject to amortization consisted of the following:
_______________ (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, generally up to 20 years, as the Company considers these intangibles to be directly related to the tower assets. 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 tenant-related intangibles typically represent the value to the Company of tenant 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 tenant-related intangibles on a straight-line basis over their estimated useful lives. As of September 30, 2020, the remaining weighted average amortization period of the Company’s intangible assets was 14 years. Amortization of intangible assets for the three and nine months ended September 30, 2020 was $215.1 million and $643.4 million, respectively, and amortization of intangible assets for the three and nine months ended September 30, 2019 was $197.9 million and $590.2 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:
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ACCRUED EXPENSES |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCRUED EXPENSES | ACCRUED EXPENSES Accrued expenses consisted of the following:
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LONG-TERM OBLIGATIONS |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT OBLIGATIONS | LONG-TERM OBLIGATIONS Outstanding amounts under the Company’s long-term obligations, reflecting discounts, premiums, debt issuance costs and fair value adjustments due to interest rate swaps consisted of the following:
_______________ (1)Accrues interest at a variable rate. (2)Repaid in full on February 13, 2020 using proceeds from the 2020 Term Loan (as defined below), borrowings from the 2019 Credit Facility (as defined below) and cash on hand. (3)Repaid in full on May 11, 2020 with borrowings from the 2019 Credit Facility and cash on hand. (4)Repaid in full on July 6, 2020 with borrowings from the 2019 Credit Facility and cash on hand. (5)Repaid in full on January 15, 2020 with borrowings from the 2019 Credit Facility and cash on hand. (6)Notes are denominated in Euros (“EUR”). (7)Maturity date reflects the anticipated repayment date; final legal maturity is March 15, 2048. (8)Repaid in full on the June 2020 payment date with cash on hand. (9)Maturity date reflects the anticipated repayment date; final legal maturity is June 15, 2050. (10)Includes the South African credit facility, which is denominated in South African Rand and amortizes through December 17, 2020, the Colombian credit facility, which is denominated in Colombian Pesos and amortizes through April 24, 2021, debt entered into by the Company’s Kenyan subsidiary in connection with an acquisition of sites in Kenya, which is denominated in U.S. Dollars (“USD”) and is payable either (i) in future installments subject to the satisfaction of specified conditions or (ii) three years from the note origination date, U.S. subsidiary debt related to a seller-financed acquisition and debt entered into by certain Eaton Towers Holdings Limited (“Eaton Towers”) subsidiaries acquired in connection with the Eaton Towers Acquisition (as defined in note 14) (the “Eaton Towers Debt”), which was denominated in multiple currencies, including USD, EUR, Kenyan Shilling and West African CFA Franc. During the nine months ended September 30, 2020, the Company repaid all of the outstanding Eaton Towers Debt (approximately $330.6 million at the dates of payment). As of December 31, 2019, included the Brazil credit facility, which was denominated in Brazilian Reais and was repaid on March 6, 2020. Current portion of long-term obligations—The Company’s current portion of long-term obligations primarily includes $750.0 million under its unsecured term loan entered into on February 13, 2020 (the “2020 Term Loan”). Securitized Debt—Cash flows generated by the sites that secure the securitized debt of the Company are only available for payment of such debt and are not available to pay the Company’s other obligations or the claims of its creditors. However, subject to certain restrictions, the Company holds the right to receive the excess cash flows not needed to service the securitized debt and other obligations arising out of the securitizations. The securitized debt is the obligation of the issuers thereof or borrowers thereunder, as applicable, and their subsidiaries, and not of the Company or its other subsidiaries. Securitizations Repayment of Series 2015-1 Notes—On the June 2020 payment date, the Company repaid the entire $350.0 million aggregate principal amount outstanding under the American Tower Secured Revenue Notes, Series 2015-1, Class A (the “Series 2015-1 Notes”), pursuant to the terms of the agreements governing such securities. The repayment was funded with cash on hand. Repayments of Senior Notes Repayment of 5.900% Senior Notes—On January 15, 2020, the Company redeemed all of the $500.0 million aggregate principal amount of 5.900% senior unsecured notes due 2021 (the “5.900% Notes”) at a price equal to 106.7090% of the principal amount, plus accrued and unpaid interest up to, but excluding January 15, 2020, for an aggregate redemption price of approximately $539.6 million, including $6.1 million in accrued and unpaid interest. The Company recorded a loss on retirement of long-term obligations of $34.6 million, which includes prepayment consideration of $33.5 million and the associated unamortized discount and deferred financing costs. The redemption was funded with borrowings under the Company’s $2.35 billion senior unsecured revolving credit facility, as amended and restated in December 2019 (the “2019 Credit Facility”), and cash on hand. Repayment of 2.800% Senior Notes—On May 11, 2020, the Company redeemed all of the $750.0 million aggregate principal amount of 2.800% senior unsecured notes due 2020 (the “2.800% Notes”) at a price equal to the principal amount, together with accrued interest up to, but excluding May 11, 2020, for an aggregate redemption price of approximately $759.3 million, including $9.3 million in accrued interest. The redemption was funded with borrowings under the 2019 Credit Facility and cash on hand. Repayment of 3.450% Senior Notes and 3.300% Senior Notes—On July 6, 2020, the Company redeemed all of the $650.0 million aggregate principal amount of 3.450% senior unsecured notes due 2021 (the “3.450% Notes”) at a price equal to 103.5980% of the principal amount of the 3.450% Notes, plus accrued and unpaid interest up to, but excluding, July 6, 2020, for an aggregate redemption price of $680.3 million, including $6.9 million in accrued and unpaid interest. Also on July 6, 2020, the Company redeemed all of the $750.0 million aggregate principal amount of 3.300% senior unsecured notes due 2021 (the “3.300% Notes”) at a price equal to 101.5090% of the principal amount of the 3.300% Notes, plus accrued and unpaid interest up to, but excluding, July 6, 2020, for an aggregate redemption price of $771.0 million, including $9.7 million in accrued and unpaid interest. The Company recorded a loss on retirement of long-term obligations of approximately $37.2 million, which includes prepayment consideration of $34.7 million and the associated unamortized discount and deferred financing costs. The redemptions were funded with borrowings under the 2019 Credit Facility and cash on hand. Offerings of Senior Notes 2.400% Senior Notes and 2.900% Senior Notes Offering—On January 10, 2020, the Company completed a registered public offering of $750.0 million aggregate principal amount of 2.400% senior unsecured notes due 2025 (the “2.400% Notes”) and $750.0 million aggregate principal amount of 2.900% senior unsecured notes due 2030 (the “2.900% Notes”). The net proceeds from this offering were approximately $1,483.4 million, after deducting commissions and estimated expenses. The Company used the net proceeds to repay existing indebtedness under the 2019 Credit Facility. 1.300% Senior Notes, 2.100% Senior Notes and 3.100% Senior Notes Offering—On June 3, 2020, the Company completed a registered public offering of $500.0 million aggregate principal amount of 1.300% senior unsecured notes due 2025 (the “1.300% Notes”), $750.0 million aggregate principal amount of 2.100% senior unsecured notes due 2030 (the “2.100% Notes”) and $750.0 million aggregate principal amount of 3.100% senior unsecured notes due 2050 (the “Initial 3.100% Notes”). The net proceeds from this offering were approximately $1,968.2 million, after deducting commissions and estimated expenses. The Company used the net proceeds to repay existing indebtedness under the 2019 Credit Facility and for general corporate purposes. 0.500% Senior Notes and 1.000% Senior Notes Offering—On September 10, 2020, the Company completed a registered public offering of 750.0 million EUR ($886.1 million at the date of issuance) aggregate principal amount of 0.500% senior unsecured notes due 2028 (the “0.500% Notes”) and 650.0 million EUR ($768.0 million at the date of issuance) aggregate principal amount of 1.000% senior unsecured notes due 2032 (the “1.000% Notes”). The net proceeds from this offering were approximately 1,385.2 million EUR ($1,636.6 million at the date of issuance), after deducting commissions and estimated expenses. The Company used the net proceeds to repay existing indebtedness under its $3.1 billion senior unsecured multicurrency revolving credit facility, as amended and restated in December 2019 (the “2019 Multicurrency Credit Facility”), and the April 2020 Term Loan (as defined below) and for general corporate purposes. 1.875% Senior Notes and 3.100% Senior Notes Offering—On September 28, 2020, the Company completed a registered public offering of $300.0 million aggregate principal amount through a reopening of the Initial 3.100% Notes (the “Reopened 3.100% Notes” and, collectively with the Initial 3.100% Notes, the “3.100% Notes”) and $800.0 million aggregate principal amount of 1.875% senior unsecured notes due 2030 (the “1.875% Notes” and, collectively with the 2.400% Notes, the 2.900% Notes, the 1.300% Notes, the 2.100% Notes, the 3.100% Notes, the 0.500% Notes and the 1.000% Notes, the “Notes”). The net proceeds from this offering were approximately $1,092.1 million, after deducting commissions and estimated expenses. The Company used the net proceeds to repay existing indebtedness under the 2019 Credit Facility and the April 2020 Term Loan. The key terms of the Notes are as follows:
___________ (1)Accrued and unpaid interest on USD denominated notes is payable in USD semi-annually in arrears and will be computed from the issue date on the basis of a 360-day year comprised of twelve 30-day months. Interest on EUR denominated notes is payable in EUR annually in arrears and will be computed on the basis of the actual number of days in the period for which interest is being calculated and the actual number of days from and including the last date on which interest was paid on the notes, beginning on the issue date. (2)The Company may redeem the 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 Notes on or after the par call date, the Company will not be required to pay a make-whole premium. (3)The Initial 3.100% Notes were issued on June 3, 2020. The Reopened 3.100% Notes were issued on September 28, 2020. (4)The 0.500% Notes and the 1.000% Notes are denominated in EUR. Represents the dollar equivalent of the aggregate principal amount as of the issue date. If the Company undergoes a change of control and corresponding ratings decline, each as defined in the applicable supplemental indenture, the Company may be required to repurchase all of the 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 indebtedness secured by such liens does not exceed 3.5x Adjusted EBITDA, as defined in the applicable supplemental indenture. Bank Facilities—During the nine months ended September 30, 2020, the Company increased the commitments under the 2019 Multicurrency Credit Facility and the 2019 Credit Facility by $100.0 million each to $3.1 billion and $2.35 billion, respectively. 2019 Multicurrency Credit Facility—During the nine months ended September 30, 2020, the Company borrowed an aggregate of 910.0 million EUR ($1.0 billion as of the borrowing dates) and repaid an aggregate of $1.8 billion, including 910.0 million EUR ($1.1 billion as of the repayment dates), of revolving indebtedness under the 2019 Multicurrency Credit Facility. The Company used the borrowings to repay existing indebtedness and for general corporate purposes. 2019 Credit Facility—During the nine months ended September 30, 2020, the Company borrowed an aggregate of $4.4 billion and repaid an aggregate of $5.6 billion of revolving indebtedness under the 2019 Credit Facility. The Company used the borrowings to repay existing indebtedness, to purchase redeemable noncontrolling interests and for general corporate purposes. 2020 Term Loan—On February 13, 2020, the Company entered into the 2020 Term Loan, the net proceeds of which were used, together with borrowings under the 2019 Credit Facility and cash on hand, to repay all outstanding indebtedness under its $1.3 billion unsecured term loan entered into on February 14, 2019 (the “2019 364-Day Term Loan”). The 2020 Term Loan matures on February 12, 2021. The Company has the option of choosing either a defined base rate or LIBOR as the applicable base rate for borrowings under the 2020 Term Loan. The interest rate on the 2020 Term Loan is 0.65% above LIBOR for LIBOR based borrowings or 0.00% above the defined base rate for base rate borrowings. Any outstanding principal and accrued but unpaid interest will be due and payable in full at maturity. The 2020 Term Loan does not require amortization of principal and may be paid prior to maturity in whole or in part at the Company’s option without penalty or premium. The agreement for the 2020 Term Loan contains certain reporting, information, financial and operating covenants and other restrictions (including limitations on additional debt, guaranties, sales of assets and liens) with which the Company must comply. Failure to comply with the financial and operating covenants of the loan agreement may constitute a default, which could result in, among other things, the amounts outstanding, including all accrued interest and unpaid fees, becoming immediately due and payable. April 2020 Term Loan—On April 3, 2020, the Company entered into a $1.14 billion unsecured term loan due April 2, 2021, which was subsequently increased to $1.19 billion effective April 21, 2020 (the “April 2020 Term Loan”), the net proceeds of which were used to repay outstanding indebtedness under the 2019 Credit Facility. During the three months ended September 30, 2020, the Company repaid all amounts outstanding under the April 2020 Term Loan with proceeds from the issuances of the 0.500% Notes, the 1.000% Notes, the 1.875% Notes and the Reopened 3.100% Notes. As of September 30, 2020, the key terms under the 2019 Multicurrency Credit Facility, the 2019 Credit Facility, the Company’s $1.0 billion unsecured term loan, as amended and restated in December 2019 (the “2019 Term Loan”), and the 2020 Term Loan were as follows:
_______________ (1)LIBOR means the London Interbank Offered Rate. (2)Fee on undrawn portion of each credit facility. (3)Reflects borrowings denominated in EUR. (4)Subject to two optional renewal periods.
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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:
_______________ (1)Included in the carrying values of the corresponding debt obligations. During the nine months ended September 30, 2020, the Company made no changes to the methods described in note 12 to its consolidated financial statements included in the 2019 Form 10-K that it used to measure the fair value of its interest rate swap agreements and redeemable noncontrolling interests. During the three months ended September 30, 2020, the Company recorded an adjustment to the embedded derivative in one of its lease agreements of $10.2 million, which is included in Other income (expense) in the consolidated statements of operations. As of September 30, 2020, the Company had no embedded derivatives outstanding. The changes in the carrying amount of the redeemable noncontrolling interests are described in note 10. 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. The Company recorded $6.0 million and $41.8 million of impairments during the three and nine months ended September 30, 2020, respectively, and $14.0 million and $45.1 million of impairments during the three and nine months ended September 30, 2019, respectively. There were no other items measured at fair value on a nonrecurring basis during the nine months ended September 30, 2020 or 2019. Fair Value of Financial Instruments—The Company’s financial instruments for which the carrying value reasonably approximates fair value at September 30, 2020 and December 31, 2019 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, 2020 and December 31, 2019, the carrying value of long-term obligations, including the current portion, was $24.8 billion and $24.1 billion, respectively. As of September 30, 2020, the fair value of long-term obligations, including the current portion, was $26.6 billion, of which $21.9 billion was measured using Level 1 inputs and $4.7 billion was measured using Level 2 inputs. As of December 31, 2019, the fair value of long-term obligations, including the current portion, was $25.0 billion, of which $17.5 billion was measured using Level 1 inputs and $7.5 billion was measured using Level 2 inputs.
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INCOME TAXES |
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Income Tax Disclosure [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. 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 real estate investment trust (“REIT”) operations. The Company continues to be subject to income taxes on the income of its domestic taxable REIT subsidiaries and income taxes in foreign jurisdictions where it conducts 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 evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. The increase in the income tax provision during the three months ended September 30, 2020 as compared to the three months ended September 30, 2019 was primarily due to a change in estimates, partially offset by changes in unrecognized tax benefits. The decrease in the income tax provision during the nine months ended September 30, 2020 as compared to the nine months ended September 30, 2019 was primarily attributable to the remeasurement of the Company’s net deferred tax liabilities in Kenya as a result of a change in tax rate and also includes a net benefit due to reductions in the amount recorded for unrecognized tax benefits. As of September 30, 2020 and December 31, 2019, the total unrecognized tax benefits that would impact the ETR, if recognized, were approximately $112.3 million and $158.1 million, respectively. The amount of unrecognized tax benefits during the three months ended September 30, 2020 includes (i) additions to the Company’s existing tax positions of $19.4 million, (ii) additions due to foreign currency exchange rate fluctuations of $0.5 million and (iii) reductions due to the remeasurement of acquired liabilities of $6.7 million. The amount of unrecognized tax benefits during the nine months ended September 30, 2020 includes (i) additions to the Company’s existing tax positions of $21.5 million, (ii) reductions due to foreign currency exchange rate fluctuations of $12.8 million, (iii) reductions due to the remeasurement of acquired liabilities of $24.6 million and (iv) reductions due to settlements of $3.6 million related to the acquisition of Eaton Towers. During the three and nine months ended September 30, 2020, the statute of limitations on certain unrecognized tax benefits lapsed, which resulted in a decrease of $25.3 million in the liability for unrecognized tax benefits. Unrecognized tax benefits are expected 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 13 to the Company’s consolidated financial statements included in the 2019 Form 10-K. The impact of the amount of these changes to previously recorded uncertain tax positions could range from zero to $49.1 million. The Company recorded the following penalties and income tax-related interest expense during the three and nine months ended September 30, 2020 and 2019:
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STOCK-BASED COMPENSATION |
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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, as amended (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 for 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, 2020, the Company had the ability to grant stock-based awards with respect to an aggregate of 6.5 million shares of common stock under the 2007 Plan. In addition, the Company maintains an employee stock purchase plan (the “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 from 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, 2020 and 2019, the Company recorded and capitalized the following stock-based compensation expense:
Stock Options—As of September 30, 2020, total unrecognized compensation expense related to unvested stock options was less than $0.1 million, which is expected to be recognized over a weighted average period of less than one year. The Company’s option activity for the nine months ended September 30, 2020 was as follows (shares disclosed in full amounts):
Restricted Stock Units—As of September 30, 2020, total unrecognized compensation expense related to unvested RSUs granted under the 2007 Plan was $146.9 million and is expected to be recognized over a weighted average period of approximately two years. Vesting of RSUs is subject generally to the employee’s continued employment or death, disability or qualified retirement (each as defined in the applicable RSU award agreement). Performance-Based Restricted Stock Units—During the nine months ended September 30, 2020, 2019 and 2018, the Company’s Compensation Committee granted an aggregate of 110,925 PSUs (the “2020 PSUs”), 114,823 PSUs (the “2019 PSUs”) and 131,311 PSUs (the “2018 PSUs”), respectively, to its executive officers and established the performance metrics for these awards. Threshold, target and maximum parameters were established for the metrics for a -year performance period with respect to each of the 2020 PSUs, the 2019 PSUs and the 2018 PSUs and will be used to calculate the number of shares that will be issuable when each award vests, which may range from zero to 200% of the target amounts. At the end of each -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 each performance period, subject generally to the executive’s continued employment or death, disability or qualified retirement (each as defined in the applicable PSU award agreement). PSUs will accrue dividend equivalents prior to vesting, which will be paid out only in respect of shares that actually vest. Restricted Stock Units and Performance-Based Restricted Stock Units—The Company’s RSU and PSU activity for the nine months ended September 30, 2020 was as follows (shares disclosed in full amounts):
_______________ (1)PSUs consist of the target number of shares issuable at the end of the -year performance period for the 2019 PSUs and the 2018 PSUs, or 114,823 and 131,311 shares, respectively, and the shares issuable at the end of the -year performance period for the PSUs granted in 2017 (the “2017 PSUs”) based on achievement against the performance metrics for the -year performance period, or 282,774 shares. (2)PSUs consist of the target number of shares issuable at the end of the -year performance period for the 2020 PSUs, or 110,925 shares, which includes 17,593 shares granted during the three months ended June 30, 2020 to the Company’s newly appointed Chief Executive Officer (“CEO”) and Chief Financial Officer and also includes 40,186 shares granted to the Company’s former CEO during the three months ended March 31, 2020 which were subsequently forfeited upon his retirement. (3)PSUs consist of shares vested pursuant to the 2017 PSUs. There are no additional shares to be earned related to the 2017 PSUs. (4)PSUs consist of shares forfeited in connection with the retirement of the Company’s former CEO, which includes the target number of shares issuable at the end of the -year performance period for the 2020 PSUs and the pro-rated target numbers of shares issuable at the end of the -year performance periods for the 2019 PSUs and the 2018 PSUs as calculated pursuant to the award agreements related to the 2019 PSUs and the 2018 PSUs. (5)Vested and deferred RSUs are related to deferred compensation for certain former employees. On April 11, 2020, the Company’s Compensation Committee changed the terms of the PSU award agreements as to the vesting applicable in the event of a PSU participant’s death, disability or qualified retirement (as defined in the award agreement) to be the same for all PSU participants, including the participant serving as CEO. The change in vesting terms is applicable for new PSU grants awarded to the CEO beginning on April 11, 2020 and does not change the vesting terms applicable to PSU grants awarded to the Company’s newly appointed CEO or former CEO prior to April 11, 2020. During the three and nine months ended September 30, 2020, the Company recorded $2.7 million and $19.1 million, respectively, in stock-based compensation expense for equity awards in which the performance goals have been established and were probable of being achieved. The remaining unrecognized compensation expense related to these awards at September 30, 2020 was $5.9 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.
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REDEEMABLE NONCONTROLLING INTERESTS |
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Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REDEEMABLE NONCONTROLLING INTERESTS | REDEEMABLE NONCONTROLLING INTERESTS India Redeemable Noncontrolling Interests—On April 21, 2016, the Company, through its wholly owned subsidiary, ATC Asia Pacific Pte. Ltd., acquired a 51% controlling ownership interest in ATC TIPL (formerly Viom), a telecommunications infrastructure company that owns and operates wireless communications towers and indoor DAS networks in India (the “Viom Acquisition”), which was subsequently merged with the Company’s existing India property operations. 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 Sons”), Tata Teleservices Limited (“Tata Teleservices”), IDFC Private Equity Fund III (“IDFC”), Macquarie SBI Infrastructure Investments Pte Limited and SBI Macquarie Infrastructure Trust (together, “Macquarie,” and, collectively with Tata Sons, Tata Teleservices and IDFC, the “Remaining Shareholders”). The Shareholders Agreement also provides the Remaining Shareholders with put options, which allow them to sell outstanding shares of ATC TIPL to the Company, and the Company with call options, which allow it 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 requires classification as redeemable noncontrolling interests in the consolidated balance sheet, separate from equity. During the nine months ended September 30, 2020, the Company made no changes to the methods of determining redemption value described in note 15 to its consolidated financial statements included in the 2019 Form 10-K. The put options may be exercised, requiring the Company to purchase the Remaining Shareholders’ equity interests, on specified dates through March 31, 2021. The price of the put options will be based on the fair market value of the exercising Remaining Shareholders’ 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 Indian Rupees (“INR”) per share. During the year ended December 31, 2019, the Company redeemed 50% of Tata Teleservices and Tata Sons’ combined holdings of ATC TIPL and 100% of IDFC’s holdings of ATC TIPL, for total consideration of INR 29.4 billion ($425.7 million at the date of redemption). As a result of the redemption, the Company’s controlling interest in ATC TIPL increased from 63% to 79% and the noncontrolling interest decreased from 37% to 21%. In April 2019, Tata Teleservices and Tata Sons delivered notice of exercise of their put options with respect to 100% of their remaining holdings in ATC TIPL. Accordingly, the Company expects to pay an amount equivalent to INR 24.8 billion (approximately $336.3 million at the September 30, 2020 exchange rate) to redeem the put shares in 2020, subject to regulatory approval. After the completion of the redemption, the Company will hold an approximately 92% ownership interest in ATC TIPL. Other Redeemable Noncontrolling Interests—During the nine months ended September 30, 2020, the Company completed the acquisition of MTN’s noncontrolling interests in each of the Company’s joint ventures in Ghana and Uganda for total consideration of approximately $524.4 million, including an adjustment of $1.4 million made during the three months ended March 31, 2020, which resulted in an increase in the Company’s controlling interests in such joint ventures from 51% to 100%. During the year ended December 31, 2019, the Company, through a subsidiary of ATC Europe, entered into an agreement with its local partners in France to form Eure-et-Loir Réseaux Mobiles SAS (“Eure-et-Loir”), a telecommunications infrastructure company that owns and operates wireless communications towers in France. The Company’s controlling interest in Eure-et-Loir is 51% with local partners holding a 49% noncontrolling interest. The value of the Eure-et-Loir interests as of September 30, 2020 was $2.7 million. The changes in Redeemable noncontrolling interests were as follows:
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EQUITY |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY | EQUITY Sales of Equity Securities—The Company receives proceeds from sales of its equity securities pursuant to the ESPP and upon exercise of stock options granted under the 2007 Plan. During the nine months ended September 30, 2020, the Company received an aggregate of $82.5 million in proceeds upon exercises of stock options and sales pursuant to the ESPP. 2020 “At the Market” Stock Offering Program—In August 2020, the Company established an “at the market” stock offering program through which it may issue and sell shares of its common stock having an aggregate gross sales price of up to $1.0 billion (the “2020 ATM Program”). Sales under the 2020 ATM Program may be made by means of ordinary brokers’ transactions on the New York Stock Exchange or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or, subject to specific instructions of the Company, at negotiated prices. The Company intends to use the net proceeds of the 2020 ATM Program for general corporate purposes, which may include, among other things, the funding of acquisitions, additions to working capital and repayment or refinancing of existing indebtedness. As of September 30, 2020, the Company has not sold any shares of common stock under the 2020 ATM Program. Stock Repurchase Programs—In March 2011, the Company’s Board of Directors approved a stock repurchase program, pursuant to which the Company is authorized to repurchase up to $1.5 billion of its common stock (the “2011 Buyback”). In December 2017, the Board of Directors approved an additional stock repurchase program, pursuant to which the Company is authorized to repurchase up to $2.0 billion of its common stock (the “2017 Buyback” and, together with the 2011 Buyback, the “Buyback Programs”). During the nine months ended September 30, 2020, the Company repurchased 264,086 shares of its common stock under the 2011 Buyback for an aggregate of $56.0 million. During the nine months ended September 30, 2020, there were no repurchases under the 2017 Buyback. As of September 30, 2020, the Company has repurchased a total of 14,361,283 shares of its common stock under the 2011 Buyback for an aggregate of $1.5 billion, including commissions and fees. As of September 30, 2020, the Company has not made any repurchases under the 2017 Buyback. Under the Buyback Programs, the Company is authorized to purchase shares from time to time through open market purchases, in privately negotiated transactions not to exceed market prices, and (with respect to such open market purchases) pursuant to plans adopted in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with securities laws and other legal requirements and subject to market conditions and other factors. The Company expects to fund any further repurchases of its common stock through a combination of cash on hand, cash generated by operations and borrowings under its credit facilities. Repurchases under the Buyback Programs are subject to, among other things, the Company having available cash to fund the repurchases. Distributions—During the nine months ended September 30, 2020, the Company declared or paid the following cash distributions (per share data reflects actual amounts):
_______________ (1)Does not include amounts accrued for distributions payable related to unvested restricted stock units. During the nine months ended September 30, 2019, the Company declared or paid the following cash distributions (per share data reflects actual amounts):
_______________ (1)Does not include amounts accrued for distributions payable related to unvested restricted stock units. The Company accrues distributions on unvested restricted stock units, which are payable upon vesting. As of September 30, 2020, the amount accrued for distributions payable related to unvested restricted stock units was $10.9 million. During the nine months ended September 30, 2020 and 2019, the Company paid $7.8 million and $6.9 million of distributions upon the vesting of restricted stock units, respectively. 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. Dividend to noncontrolling interest— The Company’s joint ventures may, from time to time, declare dividends. During the year ended December 31, 2019, ATC Europe declared a dividend of 24.5 million EUR (approximately $27.0 million at the time of declaration) payable in cash to the Company and PGGM in proportion to their respective equity interests in the joint venture. The dividend was paid on January 31, 2020.
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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 (shares 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 |
9 Months Ended |
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Sep. 30, 2020 | |
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 currently provides for the lease, sublease or management of approximately 11,250 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 -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 2,100 towers commencing between December 2000 and August 2004. Substantially all of the towers are part of the securitization transactions completed in March 2013 and March 2018. 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, 2020, the Company has purchased an aggregate of 330 of the subleased towers which are subject to the applicable agreement. The aggregate purchase option price for the remaining towers leased and subleased is $951.3 million and includes per annum accretion through the applicable expiration of the lease or sublease of a site. For all such sites, AT&T has the right to continue to lease the reserved space through June 30, 2025 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 five successive -year terms. 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. Taxing authorities may issue notices or assessments while audits are being conducted. In certain jurisdictions, taxing authorities may issue assessments with minimal examination. These notices and assessments do not represent amounts that the Company is obligated to pay and are often not reflective of the actual tax liability for which the Company will ultimately be liable. In the process of responding to assessments of taxes that the Company believes are not enforceable, the Company avails itself of both administrative and judicial remedies. The Company evaluates the circumstances of each notification or assessment based on the information available and, in those instances in which the Company does not anticipate a successful defense of positions taken in its tax filings, a liability is recorded in the appropriate amount based on the underlying assessment. On December 5, 2016, the Company received an income tax assessment of Essar Telecom Infrastructure Private Limited (“ETIPL”) from the India Income Tax Department (the “Tax Department”) for the fiscal year ending 2008 in the amount of INR 4.75 billion ($69.8 million on the date of assessment) related to capital contributions. The Company challenged the assessment before the Office of Commissioner of Income Tax - Appeals, which ruled in the Company’s favor in January 2018. However, the Tax Department has appealed this ruling at a higher appellate authority. The Company estimates that there is a more likely than not probability that the Company’s position will be sustained upon appeal. Accordingly, no liability has been recorded. Additionally, the assessment was made with respect to transactions that took place in the tax year commencing in 2007, prior to the Company’s acquisition of ETIPL. Under the Company’s definitive acquisition agreement of ETIPL, the seller is obligated to indemnify and defend the Company with respect to any tax-related liability that may arise from activities prior to March 31, 2010.
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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 nine months ended September 30, 2020 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 Company evaluates each of its acquisitions under the accounting guidance framework to determine whether to treat an acquisition as an asset acquisition or a business combination. For those transactions treated as asset acquisitions, the purchase price is allocated to the assets acquired, with no recognition of goodwill. 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; for transactions accounted for as asset acquisitions, these costs are capitalized as part of the purchase price. Acquisition and merger related costs may include finder’s fees, advisory, legal, accounting, valuation and other professional or consulting fees and general administrative costs directly related to completing the transaction. Integration costs include incremental and non-recurring costs necessary to convert data, retain employees and otherwise enable the Company to operate acquired businesses or assets efficiently. The Company records acquisition and merger related expenses for business combinations, as well as integration costs for all acquisitions, in Other operating expenses in the consolidated statements of operations. During the three and nine months ended September 30, 2020 and 2019, the Company recorded acquisition and merger related expenses for business combinations and non-capitalized asset acquisition costs and integration costs as follows:
During the nine months ended September 30, 2020 and 2019, the Company recorded benefits of $4.6 million and $13.1 million related to pre-acquisition contingencies and settlements, respectively. 2020 Transactions The estimated aggregate impact of the acquisitions completed in 2020 on the Company’s revenues and gross margin for the three months ended September 30, 2020 was approximately $3.4 million and $2.1 million, respectively, and for the nine months ended September 30, 2020 was approximately $5.2 million and $3.3 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. Entel Acquisition—On December 19, 2019, the Company entered into a definitive agreement to acquire approximately 3,200 communications sites in Chile and Peru from Entel PCS Telecomunicaciones S.A. and Entel Peru S.A. for total consideration of approximately $0.8 billion (as of the date of signing). The Company completed the acquisition of approximately 2,400 communications sites in December 2019. During the nine months ended September 30, 2020, the Company completed the acquisition of an additional 406 communications sites pursuant to this agreement for an aggregate total purchase price of $103.7 million (as of the dates of acquisition), including value added tax, which are being accounted for as an acquisition of assets and are included in the table below. Subsequent to September 30, 2020, the Company completed the acquisition of an additional 53 communications sites. The remaining communications sites are expected to continue to close in tranches, subject to certain closing conditions. Poland Acquisition—On June 16, 2020, the Company, through its recently formed Polish subsidiary, entered into a definitive agreement with Electronic Control Systems Spółka Akcyjna to acquire up to 50 communications sites in Poland for total consideration of 18.3 million Polish Zloty (“PLN”) ($4.6 million at the date of signing). During the nine months ended September 30, 2020, the Company completed the acquisition of 26 of these communications sites for total consideration of 11.6 million PLN ($3.0 million as of the dates of acquisition), including value added tax, which are being accounted for as an acquisition of assets and are included in the table below. The remaining communications sites are expected to continue to close in tranches, subject to customary closing conditions. Other Acquisitions—During the nine months ended September 30, 2020, the Company acquired a total of 416 communications sites as well as other communications infrastructure assets in the United States, France, Mexico and Peru, including 308 sites in connection with the Company’s agreements with Orange S.A. (“Orange”) as further described below, for an aggregate purchase price of $197.1 million. These acquisitions were accounted for as asset acquisitions. The following table summarizes the allocations of the purchase prices for the fiscal year 2020 acquisitions based upon their estimated fair value at the date of acquisition:
_______________ (1)Includes 20 sites in Peru held pursuant to long-term finance leases. (2)Tenant-related intangible assets and network location intangible assets are amortized on a straight-line basis generally over a 20 year period. In addition to the acquisitions discussed above, the Company purchased 102 towers related to the AT&T transaction described in note 13 for an aggregate purchase price of $55.1 million. Other Signed Acquisitions Orange—On November 28, 2019, ATC France, a majority-owned subsidiary of the Company, entered into definitive agreements with Orange for the acquisition of up to approximately 2,000 communications sites in France over a period of up to years for total consideration in the range of approximately 500.0 million EUR to 600.0 million EUR (approximately $550.5 million to $660.5 million at the date of signing) to be paid over the -year term. During the nine months ended September 30, 2020, the Company completed the acquisition of 308 communications sites. Subsequent to September 30, 2020, the Company completed the acquisition of an additional 137 communications sites. The remaining communications sites are expected to close in tranches, subject to customary closing conditions. 2019 Transactions Eaton Towers Acquisition—On December 31, 2019, the Company acquired 100% of the outstanding shares of Eaton Towers, which owns and operates approximately 5,800 communications sites across five African markets (the “Eaton Towers Acquisition”). During the nine months ended September 30, 2020, the purchase price was reduced by approximately $4.2 million. The total consideration for the Eaton Towers Acquisition, including the Company’s assumption of Eaton Towers’ existing debt, was approximately $2.0 billion. The purchase price reflects a $14.0 million receivable from the seller for reimbursement of taxes. The Eaton Towers Acquisition was accounted for as a business combination and is subject to post-closing adjustments. The full reconciliation and finalization of the assets acquired and liabilities assumed, including those subject to valuation, have not been completed and, as a result, there may be additional post-closing adjustments. The following table summarizes the preliminary and updated allocation of the purchase price paid and the amounts of assets acquired and liabilities assumed for the Eaton Towers Acquisition based upon its estimated fair value at the date of acquisition. Balances are reflected in the accompanying consolidated balance sheet as of September 30, 2020.
_______________ (1)Tenant-related intangible assets and network location intangible assets are amortized on a straight-line basis over periods of up to 20 years. (2)The Company expects goodwill to be partially deductible for tax purposes. Pro Forma Consolidated Results (Unaudited) The following table presents the unaudited pro forma financial results as if the 2020 acquisitions had occurred on January 1, 2019 and the 2019 acquisitions had occurred on January 1, 2018. 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 |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS SEGMENTS | BUSINESS 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. During the fourth quarter of 2019, as a result of recent acquisitions, including the Eaton Towers Acquisition, and changes to its organizational structure, the Company reviewed and changed its reportable segments to divide its EMEA property segment into two segments: Africa property and Europe property. Prior to this revision, the Company operated in five business segments: (i) U.S. property, (ii) Asia property, (iii) EMEA property, (iv) Latin America property and (v) services. The change is consistent with how the chief operating decision maker reviews financial performance and operating and business management strategies for each of the six segments. The change in reportable segments had no impact on the Company’s consolidated financial statements for any periods. Historical financial information included in this Quarterly Report has been adjusted to reflect the change in reportable segments. As of September 30, 2020, the Company’s property operations consisted of the following: •U.S.: property operations in the United States; •Asia: property operations in India; •Africa: property operations in Burkina Faso, Ghana, Kenya, Niger, Nigeria, South Africa and Uganda; •Europe: property operations in France, Germany and Poland; and •Latin America: property operations in Argentina, Brazil, Chile, Colombia, Costa Rica, Mexico, Paraguay and Peru. The Company’s services segment offers tower-related services in the United States, including AZP and structural analysis, 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 2019 Form 10-K and as updated in note 1 above. 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. 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, 2020 and 2019 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.
_______________ (1)Segment operating expenses and segment selling, general, administrative and development expenses exclude stock-based compensation expense of $0.7 million and $23.4 million, respectively. (2)Primarily includes interest expense.
_______________ (1)Segment operating expenses and segment selling, general, administrative and development expenses exclude stock-based compensation expense of $0.6 million and $22.9 million, respectively. (2)Primarily includes interest expense.
_______________ (1)Segment operating expenses and segment selling, general, administrative and development expenses exclude stock-based compensation expense of $2.3 million and $96.7 million, respectively. (2)Primarily includes interest expense.
_______________ (1)Segment operating expenses and segment selling, general, administrative and development expenses exclude stock-based compensation expense of $2.1 million and $85.8 million, respectively. (2)Primarily includes interest expense.
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BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation and Basis of Presentation | 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 method or as investments in equity securities, depending upon the Company’s ability to exercise significant influence over operating and financial policies. All intercompany accounts and transactions have been eliminated. |
Change in Reportable Segments | Change in Reportable Segments— During the fourth quarter of 2019, the Company’s Europe, Middle East and Africa (“EMEA”) property segment was divided into the Africa property segment and the Europe property segment. As a result, the Company has six reportable segments: U.S. property, Asia property, Africa property, Europe property, Latin America property and services, which are discussed further in note 15. The change in reportable segments had no impact on the Company’s consolidated financial statements for any periods. Historical financial information included in this Quarterly Report on Form 10-Q (this “Quarterly Report”) has been adjusted to reflect the change in reportable segments. |
Revenue | Revenue—The Company’s revenue is derived from leasing the right to use its communications sites and the land on which the sites are located (the “lease component”) and from the reimbursement of costs incurred by the Company in operating the communications sites and supporting the tenants’ equipment as well as other services and contractual rights (the “non-lease component”). Most of the Company’s revenue is derived from leasing arrangements and is accounted for as lease revenue unless the timing and pattern of revenue recognition of the non-lease component differs from the lease component. If the timing and pattern of the non-lease component revenue recognition differs from that of the lease component, the Company separately determines the stand-alone selling prices and pattern of revenue recognition for each performance obligation. Revenue related to distributed antenna system (“DAS”) networks and fiber results from agreements with tenants that are not leases. Non-lease revenue—Non-lease revenue consists primarily of revenue generated from DAS networks, fiber and other property related revenue. DAS networks and fiber arrangements require that the Company provide the tenant the right to use the applicable communications infrastructure. Performance obligations are satisfied over time for the duration of the arrangements. Other property related revenue streams, which include site inspections, are not material on either an individual or consolidated basis. There were no material changes in the receivables, contract assets and contract liabilities from contracts with tenants for the three and nine months ended September 30, 2020. Services revenue—The Company offers tower-related services in the United States. These services include site application, zoning and permitting (“AZP”) and structural analysis. There is a single performance obligation related to AZP and revenue is recognized over time based on milestones achieved, which are determined based on costs expected to be incurred. Structural analysis services may have more than one performance obligation, contingent upon the number of contracted services. Revenue is recognized at the point in time the services are completed.
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Accounting Standards Updates | Accounting Standards Updates In June 2016, the Financial Accounting Standards Board (the “FASB”) issued guidance that modifies how entities measure credit losses on most financial instruments. The new guidance replaces the current "incurred loss" model with an "expected credit loss" model that requires consideration of a broader range of information to estimate expected credit losses over the lifetime of the asset. Operating lease receivables are not within the scope of this guidance. Effective January 1, 2020, the Company adopted the new guidance using the modified retrospective approach. There was no cumulative-effect adjustment to Distributions in excess of earnings on the consolidated balance sheet as of the effective date. The adoption of this guidance did not have a material impact on the Company’s financial statements. Results for reporting periods beginning January 1, 2020 are presented under the new standard, while prior-period amounts are not adjusted and continue to be reported in accordance with accounting under the previously applicable guidance. In January 2017, the FASB issued guidance on accounting for goodwill impairments. The guidance eliminates Step 2 from the goodwill impairment test and requires, among other things, recognition of an impairment loss when the carrying value of a reporting unit exceeds its fair value. The loss recognized is limited to the total amount of goodwill allocated to that reporting unit. Effective January 1, 2020, the Company adopted the new guidance on a prospective basis. The adoption of this guidance did not have a material impact on the Company’s financial statements. In March 2020, the FASB issued guidance to provide optional expedients and exceptions for applying accounting principles generally accepted in the United States to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The guidance applies only to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the guidance do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022 for which an entity has elected certain optional expedients that are retained through the end of the hedging relationship. As of September 30, 2020, the Company has not modified any contracts as a result of reference rate reform and is evaluating the impact this standard may have on its financial statements.
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BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Cash and Cash Equivalents and Restricted Cash | The reconciliation of cash and cash equivalents and restricted cash reported within the applicable balance sheet that sum to the total of the same such amounts shown in the statement of cash flows is as follows:
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Summary of Revenue Disaggregated by Source and Geography | A summary of revenue disaggregated by source and geography is as follows:
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PREPAID AND OTHER CURRENT ASSETS (Tables) |
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Sep. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid and other current assets | Prepaid and other current assets consisted of the following:
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LEASES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Receipts Expected Under Non-Cancellable Operating Lease Agreements | Future minimum rental receipts expected under non-cancellable operating lease agreements as of September 30, 2020 were as follows:
_______________ (1)Balances are translated at the applicable period-end exchange rate, which may impact comparability between periods.
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Schedule of Information About Other Lease-related Balances | Information about other lease-related balances is as follows:
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Components of Operating Lease Cost | The weighted-average remaining lease terms and incremental borrowing rates are as follows:
The following table sets forth the components of lease cost:
_______________ (1)Includes property tax paid on behalf of the landlord. Supplemental cash flow information is as follows:
_______________ (1)Amount includes new operating leases and leases acquired in connection with acquisitions.
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Maturity of Operating Lease Liabilities | Maturities of operating lease liabilities as of September 30, 2020 were as follows:
_______________ (1)Balances are translated at the applicable period-end exchange rate, which may impact comparability between periods.
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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 each of the Company’s business segments were as follows:
_______________ (1)Consists of $148.4 million of measurement period adjustments related to the Eaton Towers Acquisition (as defined in note 14).
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Intangible assets subject to amortization | The Company’s other intangible assets subject to amortization consisted of the following:
_______________ (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, generally up to 20 years, as the Company considers these intangibles to be directly related to the tower assets.
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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:
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ACCRUED EXPENSES (Tables) |
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accrued expenses | Accrued expenses consisted of the following:
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LONG-TERM OBLIGATIONS (Tables) |
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term obligations and key terms | Outstanding amounts under the Company’s long-term obligations, reflecting discounts, premiums, debt issuance costs and fair value adjustments due to interest rate swaps consisted of the following:
_______________ (1)Accrues interest at a variable rate. (2)Repaid in full on February 13, 2020 using proceeds from the 2020 Term Loan (as defined below), borrowings from the 2019 Credit Facility (as defined below) and cash on hand. (3)Repaid in full on May 11, 2020 with borrowings from the 2019 Credit Facility and cash on hand. (4)Repaid in full on July 6, 2020 with borrowings from the 2019 Credit Facility and cash on hand. (5)Repaid in full on January 15, 2020 with borrowings from the 2019 Credit Facility and cash on hand. (6)Notes are denominated in Euros (“EUR”). (7)Maturity date reflects the anticipated repayment date; final legal maturity is March 15, 2048. (8)Repaid in full on the June 2020 payment date with cash on hand. (9)Maturity date reflects the anticipated repayment date; final legal maturity is June 15, 2050. (10)Includes the South African credit facility, which is denominated in South African Rand and amortizes through December 17, 2020, the Colombian credit facility, which is denominated in Colombian Pesos and amortizes through April 24, 2021, debt entered into by the Company’s Kenyan subsidiary in connection with an acquisition of sites in Kenya, which is denominated in U.S. Dollars (“USD”) and is payable either (i) in future installments subject to the satisfaction of specified conditions or (ii) three years from the note origination date, U.S. subsidiary debt related to a seller-financed acquisition and debt entered into by certain Eaton Towers Holdings Limited (“Eaton Towers”) subsidiaries acquired in connection with the Eaton Towers Acquisition (as defined in note 14) (the “Eaton Towers Debt”), which was denominated in multiple currencies, including USD, EUR, Kenyan Shilling and West African CFA Franc. During the nine months ended September 30, 2020, the Company repaid all of the outstanding Eaton Towers Debt (approximately $330.6 million at the dates of payment). As of December 31, 2019, included the Brazil credit facility, which was denominated in Brazilian Reais and was repaid on March 6, 2020. The key terms of the Notes are as follows:
___________ (1)Accrued and unpaid interest on USD denominated notes is payable in USD semi-annually in arrears and will be computed from the issue date on the basis of a 360-day year comprised of twelve 30-day months. Interest on EUR denominated notes is payable in EUR annually in arrears and will be computed on the basis of the actual number of days in the period for which interest is being calculated and the actual number of days from and including the last date on which interest was paid on the notes, beginning on the issue date. (2)The Company may redeem the 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 Notes on or after the par call date, the Company will not be required to pay a make-whole premium. (3)The Initial 3.100% Notes were issued on June 3, 2020. The Reopened 3.100% Notes were issued on September 28, 2020. (4)The 0.500% Notes and the 1.000% Notes are denominated in EUR. Represents the dollar equivalent of the aggregate principal amount as of the issue date.
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Schedule of line of credit facilities | As of September 30, 2020, the key terms under the 2019 Multicurrency Credit Facility, the 2019 Credit Facility, the Company’s $1.0 billion unsecured term loan, as amended and restated in December 2019 (the “2019 Term Loan”), and the 2020 Term Loan were as follows:
_______________ (1)LIBOR means the London Interbank Offered Rate. (2)Fee on undrawn portion of each credit facility. (3)Reflects borrowings denominated in EUR. (4)Subject to two optional renewal periods.
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FAIR VALUE MEASUREMENTS (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inputs used to measure fair value | Below are the three levels of inputs that may be used to measure fair value:
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Schedule of fair value of assets and liabilities | 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:
_______________ (1)Included in the carrying values of the corresponding debt obligations.
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INCOME TAXES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of penalties and income tax-related interest expense | The Company recorded the following penalties and income tax-related interest expense during the three and nine months ended September 30, 2020 and 2019:
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STOCK-BASED COMPENSATION (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of stock-based compensation expenses | During the three and nine months ended September 30, 2020 and 2019, the Company recorded and capitalized the following stock-based compensation expense:
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Summary of the company's option activity | The Company’s option activity for the nine months ended September 30, 2020 was as follows (shares disclosed in full amounts):
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RSU and PSU activity | The Company’s RSU and PSU activity for the nine months ended September 30, 2020 was as follows (shares disclosed in full amounts):
_______________ (1)PSUs consist of the target number of shares issuable at the end of the -year performance period for the 2019 PSUs and the 2018 PSUs, or 114,823 and 131,311 shares, respectively, and the shares issuable at the end of the -year performance period for the PSUs granted in 2017 (the “2017 PSUs”) based on achievement against the performance metrics for the -year performance period, or 282,774 shares. (2)PSUs consist of the target number of shares issuable at the end of the -year performance period for the 2020 PSUs, or 110,925 shares, which includes 17,593 shares granted during the three months ended June 30, 2020 to the Company’s newly appointed Chief Executive Officer (“CEO”) and Chief Financial Officer and also includes 40,186 shares granted to the Company’s former CEO during the three months ended March 31, 2020 which were subsequently forfeited upon his retirement. (3)PSUs consist of shares vested pursuant to the 2017 PSUs. There are no additional shares to be earned related to the 2017 PSUs. (4)PSUs consist of shares forfeited in connection with the retirement of the Company’s former CEO, which includes the target number of shares issuable at the end of the -year performance period for the 2020 PSUs and the pro-rated target numbers of shares issuable at the end of the -year performance periods for the 2019 PSUs and the 2018 PSUs as calculated pursuant to the award agreements related to the 2019 PSUs and the 2018 PSUs. (5)Vested and deferred RSUs are related to deferred compensation for certain former employees.
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REDEEMABLE NONCONTROLLING INTERESTS (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Redeemable noncontrolling interest | The changes in Redeemable noncontrolling interests were as follows:
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EQUITY (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of declared or paid cash distributions | During the nine months ended September 30, 2020, the Company declared or paid the following cash distributions (per share data reflects actual amounts):
_______________ (1)Does not include amounts accrued for distributions payable related to unvested restricted stock units. During the nine months ended September 30, 2019, the Company declared or paid the following cash distributions (per share data reflects actual amounts):
_______________ (1)Does not include amounts accrued for distributions payable related to unvested restricted stock units.
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EARNINGS PER COMMON SHARE (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 (shares 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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ACQUISITIONS (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of acquisition and merger related costs | During the three and nine months ended September 30, 2020 and 2019, the Company recorded acquisition and merger related expenses for business combinations and non-capitalized asset acquisition costs and integration costs as follows:
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Schedule of recognized identified assets acquired and liabilities assumed | The following table summarizes the allocations of the purchase prices for the fiscal year 2020 acquisitions based upon their estimated fair value at the date of acquisition:
_______________ (1)Includes 20 sites in Peru held pursuant to long-term finance leases. (2)Tenant-related intangible assets and network location intangible assets are amortized on a straight-line basis generally over a 20 year period. The following table summarizes the preliminary and updated allocation of the purchase price paid and the amounts of assets acquired and liabilities assumed for the Eaton Towers Acquisition based upon its estimated fair value at the date of acquisition. Balances are reflected in the accompanying consolidated balance sheet as of September 30, 2020.
_______________ (1)Tenant-related intangible assets and network location intangible assets are amortized on a straight-line basis over periods of up to 20 years. (2)The Company expects goodwill to be partially deductible for tax purposes.
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Schedule of pro forma information | The following table presents the unaudited pro forma financial results as if the 2020 acquisitions had occurred on January 1, 2019 and the 2019 acquisitions had occurred on January 1, 2018. 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 [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, 2020 and 2019 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.
_______________ (1)Segment operating expenses and segment selling, general, administrative and development expenses exclude stock-based compensation expense of $0.7 million and $23.4 million, respectively. (2)Primarily includes interest expense.
_______________ (1)Segment operating expenses and segment selling, general, administrative and development expenses exclude stock-based compensation expense of $0.6 million and $22.9 million, respectively. (2)Primarily includes interest expense.
_______________ (1)Segment operating expenses and segment selling, general, administrative and development expenses exclude stock-based compensation expense of $2.3 million and $96.7 million, respectively. (2)Primarily includes interest expense.
_______________ (1)Segment operating expenses and segment selling, general, administrative and development expenses exclude stock-based compensation expense of $2.1 million and $85.8 million, respectively. (2)Primarily includes interest expense.
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BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - CASH AND CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Dec. 31, 2018 |
---|---|---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 1,626.0 | $ 1,501.2 | $ 1,352.6 | |
Restricted cash | 104.2 | 76.8 | 95.7 | |
Total cash and cash equivalents and restricted cash | $ 1,730.2 | $ 1,578.0 | $ 1,448.3 | $ 1,304.9 |
PREPAID AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid assets | $ 81.4 | $ 56.8 |
Prepaid income tax | 212.0 | 185.8 |
Unbilled receivables | 113.3 | 142.3 |
Value added tax and other consumption tax receivables | 57.3 | 71.3 |
Other miscellaneous current assets | 84.7 | 57.4 |
Prepaid and other current assets | $ 548.7 | $ 513.6 |
LEASES - MATURITIES OF MINIMUM RENTAL RECEIPTS EXPECTED UNDER NON-CANCELLABLE OPERATING LEASES (Details) $ in Millions |
Sep. 30, 2020
USD ($)
|
---|---|
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |
Remainder of 2020 | $ 1,480.8 |
2021 | 5,921.4 |
2022 | 5,646.6 |
2023 | 5,544.8 |
2024 | 5,404.3 |
Thereafter | 34,234.3 |
Total | $ 58,232.2 |
LEASES - Narrative (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Sep. 14, 2020 |
---|---|---|
Leases [Abstract] | ||
Future minimum rental receipts expected | $ 58,232.2 | |
Lessor, Lease, Description [Line Items] | ||
Future minimum rental receipts expected | $ 58,232.2 | |
T-Mobile | ||
Leases [Abstract] | ||
Future minimum rental receipts expected | $ 17,100.0 | |
Lessor, Lease, Description [Line Items] | ||
Future minimum rental receipts expected | $ 17,100.0 |
LEASES - SCHEDULE OF INFORMATION ABOUT OTHER LEASE RELATED BALANCES (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Operating leases: | ||
Right-of-use asset | $ 7,252.0 | $ 7,357.4 |
Current portion of lease liability | 487.3 | 494.5 |
Lease liability | 6,424.4 | 6,510.4 |
Total lease liability | $ 6,911.7 | $ 7,004.9 |
LEASES - SCHEDULE OF WEIGHTED AVERAGE LEASE TERMS AND DISCOUNT RATES BY SEGMENT (Details) |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Operating leases: | ||
Weighted-average remaining lease term (years) | 13 years 7 months 6 days | 13 years 1 month 6 days |
Weighted-average incremental borrowing rate | 6.00% | 6.10% |
LEASES - LEASE COSTS (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
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Leases [Abstract] | ||||
Operating lease cost | $ 242.6 | $ 249.5 | $ 731.3 | $ 760.3 |
Variable lease costs not included in lease liability | $ 69.7 | $ 67.7 | $ 202.3 | $ 190.8 |
LEASES - SUPPLEMENTAL CASH FLOW INFOMATION (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
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Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ (732.8) | $ (701.9) |
Non-cash items: | ||
New operating leases | 125.7 | 224.8 |
Operating lease modifications and reassessments | $ 573.2 | $ 338.9 |
LEASES - MATURITIES OF OPERATING AND FINANCE LEASE LIABILITIES (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Operating Lease | ||
Remainder of 2020 | $ 216.0 | |
2021 | 845.8 | |
2022 | 818.9 | |
2023 | 788.1 | |
2024 | 753.8 | |
Thereafter | 6,784.3 | |
Total lease payments | 10,206.9 | |
Less amounts representing interest | (3,295.2) | |
Total lease liability | 6,911.7 | $ 7,004.9 |
Less current portion of lease liability | (487.3) | (494.5) |
Non-current lease liability | $ 6,424.4 | $ 6,510.4 |
GOODWILL AND OTHER INTANGIBLE ASSETS - NARRATIVE (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 215.1 | $ 197.9 | $ 643.4 | $ 590.2 |
Weighted Average | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Remaining amortization period (in years) | 14 years |
GOODWILL AND OTHER INTANGIBLE ASSETS - EXPECTED FUTURE AMORTIZATION EXPENSE (Details) $ in Millions |
Sep. 30, 2020
USD ($)
|
---|---|
Fiscal Year | |
Remainder of 2020 | $ 212.8 |
2021 | 843.1 |
2022 | 839.7 |
2023 | 835.6 |
2024 | 826.4 |
2025 | $ 795.5 |
ACCRUED EXPENSES (Details) - USD ($) $ in Millions |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued construction costs | $ 20.5 | $ 27.8 |
Accrued income tax payable | 61.5 | 55.2 |
Accrued pass-through costs | 75.2 | 74.2 |
Amounts payable to tenants | 70.7 | 77.9 |
Accrued property and real estate taxes | 212.7 | 198.1 |
Accrued rent | 77.0 | 75.6 |
Payroll and related withholdings | 85.9 | 102.4 |
Other accrued expenses | 310.6 | 347.0 |
Total accrued expenses | $ 914.1 | $ 958.2 |
FAIR VALUE MEASUREMENTS - NARRATIVE (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Adjustment to embedded derivative | $ 10.2 | ||||
Asset impairments | 6.0 | $ 14.0 | $ 41.8 | $ 45.1 | |
Long-term obligations | 24,782.3 | 24,782.3 | $ 24,055.4 | ||
Estimate of Fair Value Measurement | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long-term debt, fair value | 26,600.0 | 26,600.0 | 25,000.0 | ||
Estimate of Fair Value Measurement | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long-term debt, fair value | 21,900.0 | 21,900.0 | 17,500.0 | ||
Estimate of Fair Value Measurement | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long-term debt, fair value | $ 4,700.0 | $ 4,700.0 | $ 7,500.0 |
INCOME TAXES - SCHEDULE OF PENALTIES AND INCOME TAX RELATED EXPENSES (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Income Tax Disclosure [Abstract] | ||||
Penalties and income tax-related interest expense | $ 6.6 | $ 2.1 | $ 9.3 | $ 4.3 |
STOCK-BASED COMPENSATION - SUMMARY OF STOCK-BASED COMPENSATION EXPENSE (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 24.1 | $ 23.5 | $ 99.0 | $ 87.9 |
Stock-based compensation expense capitalized as property and equipment | 0.4 | 0.3 | 1.3 | 1.2 |
Stock-based compensation expense Property | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 0.4 | 0.4 | 1.4 | 1.4 |
Services | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 0.3 | 0.2 | 0.9 | 0.7 |
Stock-based compensation expense SG&A | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 23.4 | $ 22.9 | $ 96.7 | $ 85.8 |
STOCK-BASED COMPENSATION - SUMMARY OF THE COMPANY'S OPTION ACTIVITY (Details) |
9 Months Ended |
---|---|
Sep. 30, 2020
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding as of January 1, 2020 (in shares) | 3,060,242 |
Exercised (in shares) | (943,165) |
Forfeited (in shares) | 0 |
Expired (in shares) | 0 |
Outstanding as of September 30, 2020 (in shares) | 2,117,077 |
REDEEMABLE NONCONTROLLING INTERESTS - CHANGE IN REDEEMABLE NONCONTROLLING INTEREST (Details) $ in Millions, ₨ in Billions |
9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
|
Dec. 31, 2019
USD ($)
|
Dec. 31, 2019
INR (₨)
|
|
Noncontrolling Interest [Abstract] | ||||
Balance as of January 1, | $ 1,096.5 | $ 1,004.8 | $ 1,004.8 | |
Net income attributable to noncontrolling interests | 11.2 | 2.2 | ||
Adjustment to noncontrolling interest redemption value | (10.0) | (2.2) | ||
Purchase of redeemable noncontrolling interest | (524.4) | (425.7) | (425.7) | ₨ (29.4) |
Foreign currency translation adjustment attributable to noncontrolling interests | (18.4) | (4.3) | ||
Balance as of September 30, | $ 554.9 | $ 574.8 | $ 1,096.5 |
EQUITY - DISTRIBUTIONS (Details) - USD ($) $ / shares in Units, $ in Millions |
9 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 16, 2020 |
Sep. 10, 2020 |
Jul. 10, 2020 |
May 19, 2020 |
Apr. 29, 2020 |
Mar. 12, 2020 |
Jan. 14, 2020 |
Dec. 11, 2019 |
Oct. 17, 2019 |
Sep. 13, 2019 |
Jul. 12, 2019 |
May 22, 2019 |
Apr. 26, 2019 |
Mar. 07, 2019 |
Jan. 14, 2019 |
Dec. 04, 2018 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Dividends Payable [Line Items] | ||||||||||||||||||
Aggregate Payment Amount on common stock | $ 1,421.8 | $ 1,182.2 | ||||||||||||||||
Common Stock, $0.01 par value | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Distribution per share, common stock (in dollars per share) | $ 1.14 | $ 1.10 | $ 1.08 | $ 1.01 | $ 0.95 | $ 0.92 | $ 0.90 | $ 0.84 | ||||||||||
Aggregate Payment Amount on common stock | $ 487.9 | $ 478.8 | $ 447.3 | $ 420.7 | $ 407.0 | $ 397.8 | $ 370.5 | |||||||||||
Common Stock, $0.01 par value | Subsequent Event | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Aggregate Payment Amount on common stock | $ 506.4 |
EARNINGS PER COMMON SHARE - SCHEDULE OF EARNINGS PER BASIC AND DILUTED BY COMMON CLASS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Earnings Per Share [Abstract] | ||||
Net income attributable to American Tower Corporation common stockholders | $ 464.4 | $ 498.6 | $ 1,325.5 | $ 1,325.1 |
Basic weighted average common shares outstanding (in shares) | 443,766 | 442,763 | 443,420 | 442,110 |
Dilutive securities (in shares) | 2,390 | 3,066 | 2,588 | 3,242 |
Diluted weighted average common shares outstanding (in shares) | 446,156 | 445,829 | 446,008 | 445,352 |
Basic net income attributable to American Tower Corporation common stockholders per common share (in dollars per share) | $ 1.05 | $ 1.13 | $ 2.99 | $ 3.00 |
Diluted net income attributable to American Tower Corporation common stockholders per common share (in dollars per share) | $ 1.04 | $ 1.12 | $ 2.97 | $ 2.98 |
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, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from dilutive effect (in shares) | 0 | 0 | 1 | 1 |
ACQUISITIONS - SCHEDULE OF MERGER AND ACQUISITION RELATED COSTS (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Business Combinations [Abstract] | ||||
Acquisition and merger related expenses | $ 0.7 | $ 5.8 | $ 11.1 | $ 11.6 |
Integration costs | $ 7.0 | $ 1.6 | $ 16.1 | $ 7.8 |
ACQUISITIONS - PRO FORMA INFORMATION (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Business Combinations [Abstract] | ||||
Pro forma revenues | $ 2,013.3 | $ 2,037.5 | $ 5,924.4 | $ 5,916.3 |
Pro forma net income attributable to American Tower Corporation common stockholders | $ 464.3 | $ 486.6 | $ 1,324.7 | $ 1,274.6 |
Pro forma net income per common share amounts: | ||||
Basic net income attributable to American Tower Corporation common stockholders (in dollars per share) | $ 1.05 | $ 1.10 | $ 2.99 | $ 2.88 |
Diluted net income attributable to American Tower Corporation common stockholders (in dollars per share) | $ 1.04 | $ 1.09 | $ 2.97 | $ 2.86 |
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