LEASES

6 Months Ended

Jun. 30, 2022

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 infrastructure or ground space underneath communications infrastructure for a period of time in exchange for consideration. The Company is both a lessor and a lessee.

During the six months ended June 30, 2022, the Company made no changes to the methods described in note 4 to its consolidated financial statements included in the 2021 Form 10-K. As of June 30, 2022, the Company does not have any material related party leases as either a lessor or a lessee. To the extent there are any intercompany leases, these are eliminated in consolidation.

Lessor— Historically, the Company has been able to successfully renew its applicable leases as needed to ensure continuation of its revenue. Accordingly, the Company assumes that it will have access to the communications infrastructure or ground space underlying its sites when calculating future minimum rental receipts through the end of the respective terms. Future minimum rental receipts expected under non-cancellable operating lease agreements as of June 30, 2022 were as follows:

Fiscal Year	Amount (1)
Remainder of 2022	$	3,333.2
2023	7,235.7
2024	6,963.5
2025	6,443.2
2026	5,858.5
Thereafter	30,175.5
Total	$	60,009.6

_______________

(1)Balances are translated at the applicable period-end exchange rate, which may impact comparability between periods.    

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 2021 Form 10-K. There were no material impairments recorded related to these assets during the three and six months ended June 30, 2022 and 2021.

The Company leases certain land, buildings, equipment and office space under operating leases and land and improvements, towers, equipment and vehicles under finance leases. As of June 30, 2022, 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 six months ended June 30, 2022, other than leases acquired in connection with acquisitions, 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 six months ended June 30, 2022.

Information about other lease-related balances is as follows:

	As of
	June 30, 2022		December 31, 2021
Operating leases:
Right-of-use asset	$	9,159.2	$	9,225.1
Current portion of lease liability	$	762.6	$	712.6
Lease liability	7,862.0		8,041.8
Total operating lease liability	$	8,624.6	$	8,754.4

The weighted-average remaining lease terms and incremental borrowing rates are as follows:

	As of
	June 30, 2022		December 31, 2021
Operating leases:
Weighted-average remaining lease term (years)	12.5		13.0
Weighted-average incremental borrowing rate	5.1	%	5.1	%

The following table sets forth the components of lease cost:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Operating lease cost	$	304.2	$	268.4	$	610.7	$	519.7
Variable lease costs not included in lease liability (1)	96.3		85.1		197.7		154.4

______________

(1)Includes property tax paid on behalf of the landlord.

Supplemental cash flow information is as follows:

	Six Months Ended June 30,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(636.2)	$	(507.0)
Non-cash items:
New operating leases (1)	$	234.9	$	1,443.3
Operating lease modifications and reassessments	$	105.9	$	166.8

_______________

(1)Amount includes new operating leases and leases acquired in connection with acquisitions. For the six months ended June 30, 2021, includes $1.3 billion related to the Telxius Acquisition (as defined in note 14).

As of June 30, 2022, the Company does not have material operating or financing leases that have not yet commenced.

Maturities of operating lease liabilities as of June 30, 2022 were as follows:

Fiscal Year	Operating Lease (1)
Remainder of 2022	$	562.9
2023	1,087.5
2024	1,042.8
2025	983.3
2026	930.6
Thereafter	7,082.3
Total lease payments	11,689.4
Less amounts representing interest	(3,064.8)
Total lease liability	8,624.6
Less current portion of lease liability	762.6
Non-current lease liability	$	7,862.0

_______________

(1)Balances are translated at the applicable period-end exchange rate, which may impact comparability between periods.

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 infrastructure or ground space underneath communications infrastructure for a period of time in exchange for consideration. The Company is both a lessor and a lessee.

During the six months ended June 30, 2022, the Company made no changes to the methods described in note 4 to its consolidated financial statements included in the 2021 Form 10-K. As of June 30, 2022, the Company does not have any material related party leases as either a lessor or a lessee. To the extent there are any intercompany leases, these are eliminated in consolidation.

Lessor— Historically, the Company has been able to successfully renew its applicable leases as needed to ensure continuation of its revenue. Accordingly, the Company assumes that it will have access to the communications infrastructure or ground space underlying its sites when calculating future minimum rental receipts through the end of the respective terms. Future minimum rental receipts expected under non-cancellable operating lease agreements as of June 30, 2022 were as follows:

Fiscal Year	Amount (1)
Remainder of 2022	$	3,333.2
2023	7,235.7
2024	6,963.5
2025	6,443.2
2026	5,858.5
Thereafter	30,175.5
Total	$	60,009.6

_______________

(1)Balances are translated at the applicable period-end exchange rate, which may impact comparability between periods.    

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 2021 Form 10-K. There were no material impairments recorded related to these assets during the three and six months ended June 30, 2022 and 2021.

The Company leases certain land, buildings, equipment and office space under operating leases and land and improvements, towers, equipment and vehicles under finance leases. As of June 30, 2022, 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 six months ended June 30, 2022, other than leases acquired in connection with acquisitions, 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 six months ended June 30, 2022.

Information about other lease-related balances is as follows:

	As of
	June 30, 2022		December 31, 2021
Operating leases:
Right-of-use asset	$	9,159.2	$	9,225.1
Current portion of lease liability	$	762.6	$	712.6
Lease liability	7,862.0		8,041.8
Total operating lease liability	$	8,624.6	$	8,754.4

The weighted-average remaining lease terms and incremental borrowing rates are as follows:

	As of
	June 30, 2022		December 31, 2021
Operating leases:
Weighted-average remaining lease term (years)	12.5		13.0
Weighted-average incremental borrowing rate	5.1	%	5.1	%

The following table sets forth the components of lease cost:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Operating lease cost	$	304.2	$	268.4	$	610.7	$	519.7
Variable lease costs not included in lease liability (1)	96.3		85.1		197.7		154.4

______________

(1)Includes property tax paid on behalf of the landlord.

Supplemental cash flow information is as follows:

	Six Months Ended June 30,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(636.2)	$	(507.0)
Non-cash items:
New operating leases (1)	$	234.9	$	1,443.3
Operating lease modifications and reassessments	$	105.9	$	166.8

_______________

(1)Amount includes new operating leases and leases acquired in connection with acquisitions. For the six months ended June 30, 2021, includes $1.3 billion related to the Telxius Acquisition (as defined in note 14).

As of June 30, 2022, the Company does not have material operating or financing leases that have not yet commenced.

Maturities of operating lease liabilities as of June 30, 2022 were as follows:

Fiscal Year	Operating Lease (1)
Remainder of 2022	$	562.9
2023	1,087.5
2024	1,042.8
2025	983.3
2026	930.6
Thereafter	7,082.3
Total lease payments	11,689.4
Less amounts representing interest	(3,064.8)
Total lease liability	8,624.6
Less current portion of lease liability	762.6
Non-current lease liability	$	7,862.0

_______________

(1)Balances are translated at the applicable period-end exchange rate, which may impact comparability between periods.

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 infrastructure or ground space underneath communications infrastructure for a period of time in exchange for consideration. The Company is both a lessor and a lessee.

During the six months ended June 30, 2022, the Company made no changes to the methods described in note 4 to its consolidated financial statements included in the 2021 Form 10-K. As of June 30, 2022, the Company does not have any material related party leases as either a lessor or a lessee. To the extent there are any intercompany leases, these are eliminated in consolidation.

Lessor— Historically, the Company has been able to successfully renew its applicable leases as needed to ensure continuation of its revenue. Accordingly, the Company assumes that it will have access to the communications infrastructure or ground space underlying its sites when calculating future minimum rental receipts through the end of the respective terms. Future minimum rental receipts expected under non-cancellable operating lease agreements as of June 30, 2022 were as follows:

Fiscal Year	Amount (1)
Remainder of 2022	$	3,333.2
2023	7,235.7
2024	6,963.5
2025	6,443.2
2026	5,858.5
Thereafter	30,175.5
Total	$	60,009.6

_______________

(1)Balances are translated at the applicable period-end exchange rate, which may impact comparability between periods.    

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 2021 Form 10-K. There were no material impairments recorded related to these assets during the three and six months ended June 30, 2022 and 2021.

The Company leases certain land, buildings, equipment and office space under operating leases and land and improvements, towers, equipment and vehicles under finance leases. As of June 30, 2022, 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 six months ended June 30, 2022, other than leases acquired in connection with acquisitions, 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 six months ended June 30, 2022.

Information about other lease-related balances is as follows:

	As of
	June 30, 2022		December 31, 2021
Operating leases:
Right-of-use asset	$	9,159.2	$	9,225.1
Current portion of lease liability	$	762.6	$	712.6
Lease liability	7,862.0		8,041.8
Total operating lease liability	$	8,624.6	$	8,754.4

The weighted-average remaining lease terms and incremental borrowing rates are as follows:

	As of
	June 30, 2022		December 31, 2021
Operating leases:
Weighted-average remaining lease term (years)	12.5		13.0
Weighted-average incremental borrowing rate	5.1	%	5.1	%

The following table sets forth the components of lease cost:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Operating lease cost	$	304.2	$	268.4	$	610.7	$	519.7
Variable lease costs not included in lease liability (1)	96.3		85.1		197.7		154.4

______________

(1)Includes property tax paid on behalf of the landlord.

Supplemental cash flow information is as follows:

	Six Months Ended June 30,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(636.2)	$	(507.0)
Non-cash items:
New operating leases (1)	$	234.9	$	1,443.3
Operating lease modifications and reassessments	$	105.9	$	166.8

_______________

(1)Amount includes new operating leases and leases acquired in connection with acquisitions. For the six months ended June 30, 2021, includes $1.3 billion related to the Telxius Acquisition (as defined in note 14).

As of June 30, 2022, the Company does not have material operating or financing leases that have not yet commenced.

Maturities of operating lease liabilities as of June 30, 2022 were as follows:

Fiscal Year	Operating Lease (1)
Remainder of 2022	$	562.9
2023	1,087.5
2024	1,042.8
2025	983.3
2026	930.6
Thereafter	7,082.3
Total lease payments	11,689.4
Less amounts representing interest	(3,064.8)
Total lease liability	8,624.6
Less current portion of lease liability	762.6
Non-current lease liability	$	7,862.0

_______________

(1)Balances are translated at the applicable period-end exchange rate, which may impact comparability between periods.